PERFORMANCE MANAGEMENT PROCESS (BANK ALFALAH):

Performance Planning:
At the start of the year Job Description is provided to the employee related to his designation
goals and objectives are listed which is going to be followed. Which help Employees to a set goals,
consider the What’s and How’s which are most applicable to them and you their role in the next
12 months. The supervisor and makes sure that objectives and goals are clear to employee
through interactive session and his performance will be measured on which parameters.

Performance Execution:
Supervisor give you feedback informally throughout the year to track progress and provide
coaching and monitor the performance of the employee. Supervisors do one on one discussion
with employees on the targets given to make sure that they are meeting the challenges.
Supervisor make sure the assignments given to the employees are up to the mark if not than
adjustments are done and guide them where they are stuck to increase the productivity and
performance of the employee.

Performance Review:
Every Bank Alfalah employee participates in a formal, documented annual performance review
with their supervisor. The review assesses each individual’s total contribution during that year,
goal achievement and role performance and displays behavior and competencies. Problems are
discussed which are faced, what should be done to increase the performance next year. Supervisor
use the annual review to consolidate a clear view of the employees and total contribution for the
whole performance year. communicate a clear assessment of the employee’s performance for the
year..Complete all parts of the performance agreement and calculate the employee’s final
performance rating and category.

Performance Renewal:
The classification of individuals into Performance Categories is intended to help catalyse honest
feedback, focus improvement and distribute compensation fairly. There is however be a
necessarily broad range of performance within each of these categories. Therefore, supervisor
provide specific feedback to individuals to help maintain consistent standards and further
encourage management accountability for challenging debates around performance. This covers
total contribution, including the What’s and How’s and that each employees knows what is
required to improve performance and what support will be provided in the coming year to achieve
the targets. After in-depth analysis on the employees’ performance and the weaknesses, then
according to the need and requirements, several trainings and development programs are
arranged to improve the performance of the employees.
Performance Appraisal:

It is a structured discussion between employee and supervisor. It provides an opportunity for the
supervisor to recognize an employee’s achievement, offer suggestions for improvement when
needed, discuss job responsibilities, define objectives, counsel for career advancement, and justify
a pay adjustment. Regarding the performance appraisal, bank adopts both type of approaches.

Traditional Approach:

The traditional approach is primarily concerned with the overall organization and its past
performance. In Bank Alfalah, overall performance is reviews at branch level. Each branch is liable
to show its performance in a positive direction according to set goals.

Development Approach:

This approach viewed the employees as individuals and has been forward looking through the use
of goal setting. All the employees in the each of the branches are given a performa. Every employee
working in the bank is assigned targets, usually their target is in the form of amount. The
performances of all the branches are reviewed in the end of December. Till yet Bank Alfalah, has
no computerized system to assess the performance of employees

Performance Appraisal Process in Bank Alfalah:

 The performance appraisal process in the Bank Alfalah Ltd. is carried out in the following
manner:
 A work target is given to the employees in accordance with the expectation of the
employers through which employees are evaluated.
 The Bank Alfalah develops performance appraisal form at the beginning of the year and
makes it known to all employees about their criteria of evaluation.
 The employees are observed and checked on that fixed criteria for certain period of time
say 1 year or 6 months and their points are scored at the end of that period.
 It establishes the assessment of performance and the progress against work expectation.
 This formal documentation of performance through completion of the Performa provides
a tool for evaluation of the work of each employee.
 After completion of the form, they discuss the appraisal with the employees.
  At the end, appropriate action is recommended in accordance with the appraisal of
employees.
 Report is submitted by the manager to the higher authorities about the evaluation of
employee from different dimension, which help them to award them with increment or to
stop their increment for the coming year.

Issues While Measuring Employees’ Performance:

Weaknesses of Performance Appraisal

On the downside, appraisals have been criticized on a lot of grounds. One of the arguments
against performance appraisals is that they get affected by office politics.
Personal Assessment

The superior or the manager may not assess his subordinates fairly. Instead of basing his evaluation
on the employee's actual behavior, the manager might give his feedback on the basis of his personal
likings and disliking.

Biased Managers
Managers sometimes show bias towards employees with whom they have a friendly relationship
as compared to those who are just acquaintances. This creates nepotism and negativity in the
workplace and hampers the morale of hard-working employees.

Lack of Training

There is need of Training at many areas Employees and Managers do not understand about the
PMS forms, and especially for new hired employees.

Transfer of Assignment and Change of Goals

Employee transfers after their Goal settings and at new department the new Goals setting
assignment performed, at the time of Performance appraisal the employee performance evaluated
from two departments and the calculation of goals at current PMS is not possible there is not any
other option for change of goals or assessment from more than one department.
Further Initiatives and Recommendations for improvement:
Although Bank Alfalah Performance management system is working good but still there are some
chances of improvement so we suggest the following recommendation:

We recommend that Bank Alfalah which has successfully implemented the Performance
Management System should, as further step, consider the advisability of reviewing the PM cycle
every year for further improvement. Supervisors should be unbiased during conducting
Performance Appraisal because this creates nepotism and negativity at work place and moral of
the other workers get down. This also increases turn over in the organization. Proper training
should be given to supervisory staff conducting and implementing performance management
system. Organization should ensure the timely implementing and monitoring of PMS in all
departments of the Bank.

Identifying Issues and motivates the low performers

When you get to know about low performers after performance appraisal. Now they try to know
where the issue is and why is the employee not performing well. They try to identifying the real
issue in order to provide the instant solutions to recover the problem. Employees are asked about
the reason of low performance, after investigation right decision is taken and time is given to them
because sometime people skills become outdated and they can’t go with the pace of change pf
technology. If they need any training than employees are trained by the colleagues and training
sessions if needed.

Actions against Low Performers:

Low performers remain under the supervision, their performance is being measured regularly and
feedback is given to them so that they should know where they stand and to enhance their
performance. After that targets are given to them to whether they have improved or not, are they
capable for the organization or not after this further actions are taken.
Reward and Retention Strategy:
In Bank Alfalah the elements of reward management system are consists of Basic Pay; the fixed
salary or wage which constitutes the rates for the job. This rate is varied in a skill based or
competence based system according to the individual’s skill or competence. The rates are fixed by
managerial judgement of what is required to recruit and retain the employee.

In Bank Alfalah there is no any concept of individual performance related pay except to the
Business Development Officer. Business Development Officers are those who are hired at
contractual basis. They are assigned different targets. If they exceed to the targets they can enjoy
the individual performance related pay otherwise they are fied.

There is no concept of bonuses, commission or over time related pay. The official timing of bank
is 09.00 AM to 06.00 PM but sometime employees have to work till near 08.00 PM. However, for
this additional work they are not getting any additional bonuses / over time.