BURJ BANK LIMITED

Performance Appraisal Procedure

Gap Analysis
Submitted to Sir Sajid Ahmed Subject Performance Management Submitted by Syed Akbar Shah( 54203)

Date November 29, 2011

Table of Contents
Introduction and History............................................................................................................ 3 Vision.......................................................................................................................................... 3 Mission ....................................................................................................................................... 3 Corporate Culture ...................................................................................................................... 3 Reason for Choosing this Organization ...................................................................................... 4 Methodology and Information Gathering ................................................................................. 4 Limitations.................................................................................................................................. 4 Performance Appraisal Procedure at Burj Bank Limited ........................................................... 4 Introduction ............................................................................................................................... 4 Performance Review .................................................................................................................. 4 Performance Appraisal .............................................................................................................. 5 Probationary Review .................................................................................................................. 6 Interim Performance Appraisal.................................................................................................. 6 Employee Recognition ............................................................................................................... 7 Promotions................................................................................................................................. 7 Awards ....................................................................................................................................... 7 Reward for passing IBP Diploma Examination ........................................................................... 8 P&CEOs Club ............................................................................................................................. 8 Reward and Recognition ............................................................................................................ 8 Gap Analysis ............................................................................................................................... 9 Recommendations ................................................................................................................... 10 Conclusion ................................................................................................................................ 10

Introduction and History

Dawood Islamic Bank Limited now known as Burj Bank Limited recieved its licnence of operation in May 2006 from State Bank of Pakistan. It lies on sixth number amongst Pakistans full-fledged Islamic Banks. It started its oerations officially on 27 April, 2007. First Dawood Group (FDG) initiated this bank the aim of which is to provide Islamic Sharia Compliant services. Dawood Islamic Bank Ltd was renamed as Burj Bank Limited in July 2011. The bank has a Shariah board which is chaired by Mufti Munib Ur Rehman. He is also the banks sharia advisor. The bank currently has 50 online branches accross pakistan.

Vision
To make Burj Bank Limited the bench mark for Islamic Banking

Mission
To be among the top ten banks of Pakistan within a decade Purity Integrity Passion Devotion

Corporate Culture
Burj Bank Limited is committed to undertaking Shariah Compliant banking in a profitable and progressive manner. Each employee is a representative of the bank and as such is meant to depict its culture of integrity, reliability, trustworthiness, efficiency and progressiveness. Each employee is expected to be knowledgeable regarding the products and services offered by the bank and should be familiar with the unique features of Shariah compliant banking and how these can assist customers in meeting their business needs. The aim of the Human Resource policies is to recruit and develop employees as responsible and ethical bankers knowledgeable in Shariah Compliant banking, who contribute towards the profitable growth of Burj Bank Limited. These policies have been formulated with the aim of incorporating the high moral and ethical values in the workplace that are part of the Islamic Shariah. HRD shall from time to time issue guidelines, handbooks and instructions that lay down the desirable behavior norms for employees and the corporate culture that define

Reason for Choosing this Organization

We are studying a course named Human Resource Information System. We are carrying out a project of HRIS implementation which will cover all the components of Human resource Management. In that course, we have selected Burj Bank Limited HRIS implementation. For our ease, we have selected this organization so that we can integrate this project with the project of HRIS.

Methodology and Information Gathering

As we have earlier mentioned that this project will be concatenated with our project of HRIS, the procedure we followed, have been taken from HRIS project. Our teacher of HRIS Mr. Talha Asim Ghazi had been a part of team who had worked on Human Resource Policy of Burj Bank and finally documented the HR policy. All the necessary information for this project has been taken from Mr. Talha Asim Ghazi and we are thankful to him for his kind support.

Limitations
This project is a class project and solely concerned with performance management system of Burj Bank Limited. The findings of this projects cannot be generalized to any other component of Human Resource Management and organization.

Performance Appraisal Procedure at Burj Bank Limited

Introduction
Performance management includes activities to ensure that objectives are consistently being met in an effective and efficient manner. The objective of Performance Management System (PMS) is to promote a performance culture, reward performers and provide opportunities to employees for their development and progression at Burj Bank Limited.

Performance Review
a) Performance review process is an ongoing process and not limited to a specific period during the year. Each manager and supervisor is required to observe, measure and track performance of staff under their supervision throughout the year. b) The Performance Appraisal of employees of the bank is undertaken throughout the year and constitute as many of the following elements as required to enable meeting of performance appraisal objectives: Formal annual performance appraisals Probationary reviews Interim reviews

 c)

Informal one on one discussion Counseling meetings with managers Observation on the job Skill and job related tests The on-going performance review is accompanied by feedback. Feedback are clearly conveyed and given in a timely manner. d) To formalize the review procedure, the Bank conducts Performance Appraisal once a year which includes documentation of actual performance, for a given year, against some key performance indicators, set in advance, highlight achievements, identify areas for further development and suggest corrective measures, if required.

Performance Appraisal
a) The Objectives of the Performance Review Program at bank are: To measure work performance within the time period for which the performance appraisal is conducted. To measure whether actual efforts were useful in achieving objectives set out for the job. Determine, define or redefine future objectives/key result areas, and agree on action plans. To improve communication and working relationship and fostering positive relationships between management and staff. To motivate and assist employees in improving performance and achieving personal/professional career goals. To provide objective information for making decisions for awarding incentives and determining career progression. To identify employees training and development needs. To assist in succession planning by identifying high performers. To bring about attitude and behavioral development. b) The annual performance appraisal cycle is January to December each year, with appraisals being carried out in January of the subsequent year. Department Head use all possible opportunities to provide feedback to their staff on an ongoing basis, independent of the formal annual appraisal process. c) Each regular and bank contract employee of Burj Bank Limited undergo performance appraisal based on above d) Employees who have been with the bank six (6) months or less in an Annual Appraisal year are appraised in the next Annual Appraisal year. e) The Annual Performance Appraisal is completed latest by mid March every year for the preceding full calendar year. f) Performance of each employee is primarily appraised by his/her line manager/ supervisor.

g) The Annual Appraisal is conducted according to pre-determined formats gauging the work performance, attitude and potential of each employee appraised. h) The Annual Appraisal forms the basis of further action vis-a-vis employeescareer growth for the coming year in any of the following ways. However, salary increments and promotions are not guaranteed as a result of Annual Appraisal Promotion Increment Training Requirements Awards and Rewards Commendations Reprimands and Cautions

Probationary Review
a) Employees are inducted within the bank, on probation of upto six (6) months. A Probationary Review is conducted as per pre-approved format atleast 15 days before the end of the probationary period. b) The Probationary Review gauges the suitability of the employee for the job hired, the ability of the employee to fit into the the banks culture and potential to grow with the bank. c) The line supervisor/ manager of the employee on probation fills out the Probationary Review Form and the Department/ Divisional Head adds own comments before sending to HRD for further processing. d) The Probationary Review recommend one of the following courses of action Early Confirmation of Service (where confirmation is recommended substantially in advance of completion of probation period but not less than two (2) months from date of appointment). Confirmation of Service on conclusion of probation term Extension of probation period (no more than three (3) additional months). Termination of service on conclusion of Probation Period. e) The revisions in salary and grade is avoided on confirmation of service after probation and is reviewed separately at appropriate times. f) HRD then issues a letter of confirmation to the employee based on recommendations received from line managers.

Interim Performance Appraisal

a) Such formalized appraisal are conducted any time during the year to address any interim requirement such as at time of change of supervisor, competitive pressures, disciplinary issues etc. b) For all performance appraisals the performance standards are the Key Performance Indicators as laid out in the job description of the employee and full justifications provided for recommendations, if any.

Employee Recognition
a) In order to keep employees motivated and engaged with the Bank, the bank recommends that the annual appraisal exercise should lead to acknowledging the performance of employees. The recognition process gives due consideration to the different levels of performance to recognize the high performers and motivate all other employees to aspire towards high performance levels. This can t the following forms: Salary Reviews/Adjustments on the basis of performance, complexity of job and benchmarking with the market are undertaken as a result of Annual or Interim Performance Review and in accordance with compensation policy of Burj Bank Limited.
Promotions

While recommending the elevation in grade of an employee, the line managers keeps under consideration, amongst others the following aspects of the employee: Outstanding Job Performance Availability of a higher grade position High motivational level Superior Communication Skills both written and spoken Service Orientation Leadership Potential Ability to assume additional and enhanced responsibilities Personal Traits such as pleasant personality, maturity level, abilitity to handle stress etc. b) All promotions are made on individual merit and no employee has the right to promotion to any particular Grade on the basis of seniority alone. Promotion to all categories and grades are approved by a committee comprising of President & CEO, concerned Group Head and Head of HRD in accordance with the bank policy laid down from time to time and solely at the discretion of the Committee as above stated, in the Interest of the bank. c) An employee officiated in a higher grade if shows sign of deterioration is immediately subjected to demotion.
Awards

a) Based on measurable superior performance (against numeric targets or qualitative predefined goals), high achievers are given spot bonuses and cash awards. b) Any nominations for such spot bonuses with suggested amounts are submitted to HRD by Group/Divisional Heads substantiated with numbers and facts. c) HRD screens these lists in consultation with recommending Group/Divisional Head before putting up for approval. d) The deciding Committee in this case comprise P&CEO and Head HRD which take final decision as to recipients as well as amounts to be disbursed.

Reward for passing IBP Diploma Examination

a) The banking diploma is a professional examination and carries due weight for staff members working in financial institutions and banks. Accordingly the bank gives due consideration to IBP Diploma holders in hiring, increments and promotions based on their demonstrating abilities to handle the job in a better manner. In order to encourage employees to improve their knowledge in banking, the following incentives are offered for passing different stages of the IBP Diploma: Attempt at which passed exam First attempt Second attempt Third attempt Stage-1 Rs. 50000 Rs. 30000 Rs. 10000 Stage-2 Rs. 75000 Rs. 50000 Rs. 15000 Stage-3 Rs. 100000 Rs. 75000 Rs. 25000

b) The above-mentioned cash awards are available to all confirmed permanent employees working for the bank who pass the IBP exam after implementation of this policy
P&CEOs Club

a) P&CEOs club is a recognition program designed to recognize employees who have received the significantly above target / highest rating in their annual appraisals. b) Eligibility: All permanent confirmed staff at the bank are eligible for the P&CEOs club award. The membership of the P&CEOs club is awarded to the staff who have recieved significantly above target / highest rating (rating criteria may differ in each appraisal cycle) in the last annual appraisal. The membership is valid for the period of one year till the next performance appraisal cycle.
Reward and Recognition

The members of the P&CEOs club are entitled to the following: Recognition by the P&CEO and senior leadership of the Bank during a formal lunch; Certificate/plaque and a gift (e.g. branded pen with embossing); c) Staff who has been identified as part of the P&CEOs club for a continuous period of three (3) years are eligible to ten percent (10%) extra increment in the third year at time of annual increments. d) Staff in the P&CEOs club are eligible for other benefits instituted by HRD from time to time.

Gap Analysis
Burj Bank Limited has a comprehensive performance appraisal process which covers almost many of the aspects that we have been studying and discussing in class for ideal performance appraisal. However we have come up with some gaps that according to us and best practices may not have been followed by the bank. 1. Though it is mentioned that the immediate boss/ supervisor continuously observe, measure and track performance of the staff throughout the year, nevertheless, the bank has a policy to conduct a formal performance review annually. According to ideal situation, the performance review meetings may be conducted semi-annually or quarterly to improve the performance of the employees. 2. Employees who have been upto 6 month with the bank or less than a year are appraised next year. It is because the bank formally conducts review meeting annually. If the bank followed a semi-annually or quarterly review policy, this problem would automatically have been settled. 3. Salary increments and promotions are not guaranteed after the annual appraisal. Promotion depends on fulfillment of some conditions, one of which is availability of a higher grade due to which the bank cannot guarantee a promotion for best performer. Nonetheless the salary increment should be guaranteed because of the inflationary adjustments for the best performers. 4. As we have read in our course that most organizations ignore the middle of the road performers due to whom the day to day activities are running efficiently. The main focus is on the either extremes of the continuum. This policy also has the same problem. The middle of the road performers are not focused at all. The below performers have also been ignored. This policy lacks emphasis on how to motivate the middle of the road performer and what activities should be taken to improve the performance of the below performers. 5. In the promotion section and the criteria to promote the employee, what if the availability of a higher position did not occur year and year. The employee fulfilling all the criteria but a higher position is not available may think that he/she is being subjected to deprivation of a right due to which his/her all other qualities may fade. If a higher grade is not available in the functional area the employee is working and the employee deserves an immediate promotion, then his/her job may be rotated at a higher position in another functional area keeping in view his/her consent. 6. An employee officiated at a higher position shows signs of deterioration is subjected to immediate demotion. This policy may have its adverse effect on employee behavior, attitude, motivational level and other positive points. The proper way to deal such problem is to issue a show cause notice first warning him/her the affects of such signs. There are other ways to deal with such issues. The demotion is the last stage of dealing with such issues. 7. This policy emphasizes on confirmed employees. What about the contractual employees and the employees contracted by third party contractors? They are also part of the organization and their performance also affects the performance of the organization. There should have been a system to appraise and motivate employees falling in such category

8. P&CEO club member ship policy is detrimental to organization. It may create problem for organization in the long run because it is kind of discrimination. The middle of the road employees may be disappointed when they see some employees are eligible for this reward and some are not. In todays modern world this kind of disparities have been disregarded and degraded by modern and multinational organizations. Either such type of facilities may be available for all employees or otherwise disbanded. 9. The bank has not emphasized on self assessment technique. Self assessment is becoming an effective tool for the organization. This technique is one of the most powerful tools to effectively assess the performance of the employees. The main advantage of this technique lies in non-defensive behavior of employee the existence of which may create problems and conflicts. 10. The culture of 360 degree performance appraisal is absent. There is no policy of appraising the President and CEO and the top management. They may be appraised by the board of directors and may be accountable for their doings.

Recommendations
We have tried to cover each and every aspect of the ideal practices so far we have read. Almost at every step of gap analysis we have put some recommendations that the organization may adopt. The identification of gaps and comparing the identified gaps with ideal practices are itself recommendations as every single gap is identified and compared with best practices. However, there is room for the bank to change and adjust its performance management policy in accordance with the best practices that we have suggested. Every organization either of any type is going through a process of evolution and transformation.

Conclusion
In a nutshell, it is to say that the best organizations care for their employees and treat them as family members. They learn from their wrongs and try not to repeat their wrong doings and maintain a document of lessons-learned so that they do not incur the same mistakes which they have already done.