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PERFORMANCE AND

COMPENSATION
MANAGEMENT
Assignment 1

SEPTEMBER 24, 2017


SUBMITTED BY: HASHAM ZAHID
SUBMITTED TO SIR SHAH M. SAAD
Company Introduction: -

The Employees' Old-Age Benefits Institution (EOBI) is the pension, old age benefits and social
Insurance institution of the Government of Pakistan. It operates under the control of Ministry of
Overseas Pakistanis and Human Resource Development. It came into formation in 1976, through
the passage of the Employees' Old-Age Benefits Institution Act of 1976 by the Parliament of
Pakistan, under the Pakistan Peoples Party (PPP) government of Prime Minister Zulfikar Ali
Bhutto. As of August 2016, the current Chairman of EOBI is Mr. Khaqan Murtaza. Employees' Old-
Age Benefits Institution provides following benefits to the insured person or its survivors. An
insured person typically becomes eligible to get pension after reaching the age of 60 and
completing 15 years of insured service.

1. Old age pension - This pension is provided in an event of retirement


2. Survivors' pension - Survivors pension is provided to the nominees of the insured person
in event of death of the insured person. As per Islamic teachings old parents and young
widows are included in the survivor pension program. As per EOBI rules, parents of the
unmarried employee gets pension for 5 years in case of employee's death. If any
employee dies after 36 months of EOBI insurable service, his widow gets the survivors
pension for the entire life. Children of the deceased insured individual are eligible to get
the EOBI survivor pension even if the widow of the insured employee gets remarried given
the stepfather of the children may not take the financial responsibility of the children [4]
3. Invalidity pension - This pension is provided in case of disability of the insured person
4. Old age grant - Old age grants are given to those who have attained the superannuation
age but do not meet the minimum threshold for pension

The functions of EOBI include

Identification & Registration of Establishments and Industries.


Identification & Registration of Insured Persons
Collection of Contribution
EOB Fund Management
Provision of Benefits as per Laws
Organization Score Card
Characteristics 20th Century 21st Century Assigned Weightage EOBI's Score
Organization The Pyramid The web or network 0.07 0.02
Focus Internal External 0.05 0.03
Style Structured Flexible 0.06 0.03
Source of
Stability Change 0.03 0.02
Strength
Structure Self-sufficiency Interdependencies 0.05 0.03
Atoms-Physical
Resources Bits-Information 0.04 0.02
Assets
Operations Vertical Integration Virtual Integration 0.08 0.04
Products Mass Production Mass Customization 0.04 0.03
Reach Domestic Global 0.08 0.02
Financials Quarterly Real Time 0.05 0.03
Inventories Months Hours 0 0
Strategy Top down Bottom Up 0.08 0.04
Leadership Dogmatic Inspirational 0.08 0.04
Employees and Free
Workers Employees 0.05 0.03
Agents
Job Expectations Security Personal Growth 0.09 0.03
Motivation To compete To build 0.04 0.02
Improvements Incremental Revolutionary 0.06 0.02
Quality Affordable best No compromise 0.05 0.03
Total 1 0.48

Comments:
EOBI is a government run organization and as such has a pyramid organizational structure, where
decision making process follows a top bottom approach. The strategies and decisions are taken
at the top and are then passed down to the respective department heads, whose job is to enforce
them. The leadership of the organization is constantly changing, as every political party appoints
its own Chairman. This has prevented the organization from developing its own culture, as each
Chairman brings about new changes to the organization. EOBIs employees are more concerned
with the job security, the organization the job offers as it is a government organization rather
than on their personal growth. Being a service oriented business, the organization does not keep
any inventories. While employees are not discouraged to interact with each other, however the
organizations do not take any significant steps on an official level to bring employees closer. This
has given rise to the silo mentality as employees of a department are only concerned with the
performance of their own division. EOBI has domestic reach as it caters to Pakistani pensioners.