FINAL PROJECT

BANK OF PUNJAB PERFORMANCE

MANAGEMENT SYSTEM


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Table of Contents
HISTORY ................................................................................................................................ 4
VISION .................................................................................................................................. 4
MISSION STATEMENT ............................................................................................................ 4
CORE VALUES ........................................................................................................................ 4
PRODUCT AND FEATURES ...................................................................................................... 5
BOPS MANAGEMENT AND EMPLOYEES ................................................................................ 6
Staff Strength ..................................................................................................................... 6
Board of Directors (BOP) .................................................................................................... 6
BOP Top Level Management .............................................................................................. 7
Auditors Committee ....................................................................................................... 7
Auditors ......................................................................................................................... 8
Registered Office ............................................................................................................ 8
Website .......................................................................................................................... 8
UAN ............................................................................................................................... 8
Registrar ......................................................................................................................... 8
CORPORATE GOAL ............................................................................................................. 8
HUMAN RESOURCE MANAGEMENT ....................................................................................... 8
B.O.P HRM OBJECTIVES ...................................................................................................... 9
HRM PERSONAL COMMUNICATION ................................................................................... 9
B.O.P HRM PRACTICES .................................................................................................... 9
HRM FLOW ........................................................................................................................ 9
Note: Depending on the profile, there will be multiple technical and/or written rounds. 10
PERMANCE MANAGEMENT SYSTEM (PMS) OF B.O.P ........................................................ 10
STEPS OF PMS .................................................................................................................. 10
SETTING PERFORMANCE STANDARDS AND EXPECTATIONS .............................................. 10
HOW PERFORMANCE REPORTS ARE WRITTEN .................................................................. 11
EMPLOYEES DEVELOPMENT ............................................................................................ 11
INTERNAL WAY OF EMPLOYEES DEVELOPMENT ........................................................... 12
EXTERNAL WAY OF EMPLOYEES DEVELOPMENT ........................................................... 12
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ORGANIZATIONAL CAREER MANAGEMENT .......................................................................... 12
EMPLOYEES JOB CHANGES IN THE ORGANIZATION ........................................................... 12
PROMOTION ................................................................................................................ 12
TRANSFER ..................................................................................................................... 13
DEMOTION ................................................................................................................... 13
SEPARATIONS .................................................................................................................. 13
LAY OFF ........................................................................................................................ 14
TERMINATION .............................................................................................................. 14
RESIGNATION ............................................................................................................... 14
PERFORMANCE APPRAISAL .............................................................................................. 14
TRAINING & DEVELOPMENT ............................................................................................. 16
LIST OF EXTERNAL SOURCE ........................................................................................... 16
COMPENSATION .............................................................................................................. 17
BENEFITS ...................................................................................................................... 18
EMPLOYEE RELATIONS ..................................................................................................... 18
CONCLUSION &RECOMMENDATION .................................................................................... 19
FUTURE HR TRENDS ............................................................................................................. 20


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HISTORY
Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given
the status of scheduled bank in 1994. The Bank of Punjab is working as a
scheduled commercial bank with its network of 273 branches at all major
business centers in the country. The Bank provides all types of banking services
such as Deposit in Local Currency, Client Deposit in Foreign Currency,
Remittances, and Advances to Business, Trade, Industry and Agriculture A
wholly owned subsidiary of BOP First Punjab Modaraba (FPM) was
established in 1992 and is being managed by Punjab Modaraba Services (P.v.t)
Ltd.
VISION
To be a customer focused bank with service excellent.
MISSION STATEMENT
To exceed the expectations of our stakeholders by leveraging our
relationship with the government of Punjab and delivering a complete range
of professional solutions with a focus on program driven products and
services in the Agriculture and Middle Tier Markets through a motivated
team.
CORE VALUES
Our Customer: As our first priority.
Profitability: For the prosperity of our stakeholders that allows us to constantly
invest, improve and succeed.
Corporate Social Responsibility: To Enrich the Lives of community where we
operate.
Recognition and Reward: For the talented and high performing employees.
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Excellence: In everything we do.
Integrity: In all our dealings.
Respect: For our customers and each other.
PRODUCT AND FEATURES
The Bank of Punjab was established in 1989 under the "The Bank of Punjab Act 1989". The
bank provides commercial banking and related services in Pakistan and Azad Jammu and
Kashmir, with special emphasis on the agricultural sector. Now a days it is in the future
requirement every one want these facilities, Bop is giving these such kind of facilities and its
effect would be increase the profitability.
BOP Offers the House Loan (Long Term Finance Facility) for purchase of
house / flat, purchase of plot & construction thereon , construction of house
on self owned plot, renovation / home improvement
BOP offers the car lease facility to purchase brand new locally manufactured /
assembled / imported vehicles for personal use.
BOP Apna cash Card is an ATM plus debit card. Our customer will be able to
use the debit card across the country in BOP network as well as across any
other bank network.
BOP offers aasaish loan facility for the purchase of consumer durable goods
of all renowned brands for personal use.
BOP provide the Karobar Barhao facility to meet working capital
requirement. Customer will be able to withdraw the amount of max Rs.
50,000,000/- and min Rs. 200,000/- with floating markup rate.
Provision of financial facility to the farmers for installation of Tube well,
turbines etc.
Amount: Maximum Rs 500,000/-. Provision of financial facility to the
Village Veterinary Workers for purchase of Artificial Insemination kits on lease finance basis.
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BOPS MANAGEMENT AND EMPLOYEES
Staff Strength
At present, the total number of employees in the organization is 4918.


Board of Directors (BOP)
Sr. # Name Status
01 Mr. Safdar Javaid Syed Chairman
02 Mr. Naeem-Ud-Din Khan President
03 Mr. Tariq Mehmood Pasha Director
04 Mr. Azhar Hamid Director
05 Mr. Shafqat Ellahi Director
06 Mr. Shafqat Mahmood Director
07 Mr. Waqar Ahmed Khan Director
08 Mr. Raza Saeed Secretary

STAFF STRENGTH
4918
4555
4120
3923 3806
0
700
1400
2100
2800
3500
4200
4900
5600
Years
#

O
F

E
m
p
l
o
y
e
e
s

2004 2005 2006 2007 2008
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BOP Top Level Management
Sr.# Name Designation
1 Mr. Khalid Siddiq Trimizey Deputy Chief Executive Officer
2 Mr. Sajjad Hussain Head of Special Project
3 Mr. Shahid Waqar Mahmood Head Retail Banking
4 Mr. Nadeem Amir Chief Financial Officer
5 Mr. Sharjeal Masud General Manager Operations & IT
6 Mr. Zalmai Azam Durrani General Manager Broad Base Liability
7 Mr. S. M. Atif Head Consumer Banking Division (CBD)
8 Mr. Azhar Hussain Dilawari Head IT
9 Mr. Khawar S.Ansari Head Treasury
10 Mr. Ijaz ur Rehman Qureshi Head of Audit & RAR
11 Mr. Main Muhammad Sharif Head CAD
12 Mr. Salman Saeed Head Credit Policy
13 Mr. Moazzam M Maneka Head Agriculture Credit Department
14 Mr. Amir Hameed Head TPC
15 Mr. Sajid Arif Nomani Head Establishment
16 Mr. Irfanuddin Head C&CD
17 Mr. Moghis Bokari Head Human Resource
18 Mr. Abdul Razzaq Chief Risk Officer
19 Mr. Hafeez ud Din Head SAM
20 Mr. Liaquat Ali Country Commercial Head
21 Mr. Momin Hyat Advisor Islamic Banking
22 Mr. Ahmed Tariq Azam Head Corporate
Auditors Committee
Mr. Kasir Zulifqar Khan Chairman
Mr. Salman Siddique Member
Mr. Khurram Iftikhar Member
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Auditors
Ford Rhodes Sidat Hydar & Co., Charter Accountants
Registered Office
7- Egerton Road, Lahore Pakistan PBX + 92 (42) 9200421 432
Website
(www.bop.com.pk)
UAN
(111-200-100)
Registrar
M/s corplink (Pvt) Ltd Wings Arcade, 1-k (Commercial) Model Town, Lahore. Ph: 042-
5839182
CORPORATE GOAL

Organizational goal and strategy define the purpose and competitive techniques that set it
apart from others organizations. Goals are often written down as an enduring statement of
company intent. A strategy is the plan of action that describes the resource allocation and
activities for dealing with the environment and for reaching the organizational goal. Goals
and strategies define the scope of operations and the relationship with employees, clients
and competitors.
With over 140 years of experience in trade finance and an extensive international branch
network, The Bank of Punjab is committed to help the customer succeed in every
competitive environment. To keep pace with changing needs, BOP constantly review its
comprehensive cash, trade and treasury products and services, ensuring that a full range of
flexible and innovative services is always available for the customer wherever they trade.
HUMAN RESOURCE MANAGEMENT
The policies and practices involved in carrying out the
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people or human resource aspects, including recruiting,
Screening, training, rewarding, and appraising.
OR
The Process of acquiring, training, appraising &
compensating employees.
B.O.P HRM OBJECTIVES
In B.O.P HR department is under GROUP HEAD Mr. MOGHIS BUKHARI, HRM
objectives are fully consistent with mission & values of BOP. However if
employees are allowed flex time they will feel more satisfied. According to
in flex time employees are allowed to work in a time frame of flexible hours
for work i.e. relaxation at slow hours but ensuring to be at workplace during
peak hours. It will not only increase their productivity but will ensure a better
culture in the organization. It is beneficial for both, the organization &
workers in every aspect & as such no con appear for anyone.
HRM PERSONAL COMMUNICATION
HRM is an active department having good relations with employees
85% employees are satisfied with their salary package
45% employees are punctual only so HRM could initiate flex-time for employees
B.O.P HRM PRACTICES
Above mentioned practices is followed by different organizations. But according to our
requirement we extract these practices from definition regarding our assignment varies.
HRM FLOW



Recruitment & Selection
Training & Development
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The recruitment and selection process is a series of hurdles aimed at selecting the best candidate
for the job. In B.O.P management follow this process for recruitment and selection. At B.O.P we
believe that it is imperative for us to test not only your knowledge, but also analyze your ability
to think when given a certain task. We also look for drive in an individual to excel and innovate.
Note: Depending on the profile, there will be multiple technical and/or written rounds.
PERMANCE MANAGEMENT SYSTEM (PMS) OF B.O.P
For performance management there are certain parameters on which performance is measured.
The performance management is not essential for the employees but also good in the favor of
organization. The Bank of Punjab (BOP) has also certain parameters for performance
management.
STEPS OF PMS
Following two steps are used in Bank of Punjab (BOP):
Setting performance standards and expectations.
How performance reports are written.
SETTING PERFORMANCE STANDARDS AND EXPECTATIONS
The Bank of Punjab (BOP) measures the performance through goals, targets and achievement
of those targets. Every branch manager of the Bank of Punjab (BOP) has assigned a target for
a period of one year. The branch manager of the Bank of Punjab at Bhakkar district has (given
me a previous years evaluation regarding performance due to which I compel to mention
previous years data here) a target noted below for year 2004-2005 and 2005-2006.

Performance Appraising
Compensating
Employees Relations
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YEAR TARGET
2004-2005 Deposit
200 Million
Financing
150 Million
2005-2006 250 Million 200 Million
Every manager try to achieve the targets assigned to him by the Bank of Punjab (BOP).
Assessment of performance is an important element for measuring goals or targets. Regular
assessments of progress toward goals, focuses the attention and efforts an employee or a team. If
a branch manager of Bank of Punjab (BOP) takes the time to identify measurable goals, but
fails to access progress towards them, then he will be in trouble.
HOW PERFORMANCE REPORTS ARE WRITTEN
The Bank of Punjab is a big organization therefore; it has a proper setup to prepare written
performance reports. The performance reports are written on the basis of annual confidential
reports (ACR) and achievements of targets. Every branch manager will write the ACR for his
subordinate employees. Every area manager will write the ACR for every branch manager
Another way for writing the performance report is that an employee himself writes his reports
regarding performance, the branch manager is the authority to check that and after branch
manager approval the reports are finalized.
In The Bank of Punjab (BOP) while writing an ACR following performance standards are used:
Target setting
Target achievement
Overall behavior
Dependability
Job knowledge
Job attendance
EMPLOYEES DEVELOPMENT
Employees development is an essential aspect. Keeping in view the Bank of Punjab (BOP) has
two ways for employee development.
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Internal way of employees development.
External way of employees development.
INTERNAL WAY OF EMPLOYEES DEVELOPMENT
Internal way of employees development carries on at branch level, area level, region level, and
at head office level. In internal way of employees development, an area manager carries on
employees training on weekly basis and Saturday is the day fixed for this purpose. On the other
hand, the area manager gives training to employees on monthly bases; same with regional and in
head office level there is an OTI (Officer training institute) in which the Bank of Punjab
(BOP) experts give training to employees.
EXTERNAL WAY OF EMPLOYEES DEVELOPMENT
In this way of employee development, The Bank of Punjab (BOP) has an arrangement at head
office level that is CMD (Centre for Management Development) in which experts from
outside hired for the employees development.
ORGANIZATIONAL CAREER MANAGEMENT
EMPLOYEES JOB CHANGES IN THE ORGANIZATION
In the bank of Punjab during the job tenure, the employees job changes in organization in
following ways.
Promotion
Transfer
Demotion
PROMOTION
In Bank of Punjab BOP after three years promotion is due. The performance is an important
aspect regarding promotion.
Promotion criteria in Bank of Punjab are based on the marks achieved out of hundred on
different assessment basis, which are;
50 marks are for Performance appraisal. It is in the form of A, B, C, D rankings.
Immediate Supervisor fills the performance appraisal form.
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10 marks for current qualification of the employee. e.g. if a clerical or non clerical
staff worker after a few years of job experience has done graduation, now
he deserves to be promoted to officer level like junior officer in the bank.
10 marks for Banking Diploma of IBP. If an employee has done that he
gets ten marks straight. There are 3 stages of Diploma. A person clearing
2 stages will get 6.7 marks out of ten.
10 marks for experience. A person needs minimum 3 years experience to
qualify for promotion at next level. And if he has more years of
experience he will get more marks out of ten.
20 marks are for potential assessment. It judges that how much potential a
person has to hold a designation. It depends on employees personality,
attitude and behavior mainly. A person having leadership quality, has a
good responsibility level, has complete control over his tasks means he
has the potential to move to next level. Potential assessment is done
through supervisors remarks. Supervisor gives an assessment report in
which he gives his comments about his subordinate.
The marks necessary to promote out or cut off marks are usually 60 or
above out of 100. If a person gets above average marks for instance 95
marks he is worthy to be promoted but also encouraged and uplifted. He can be
given appreciation letter or a good ranking etc.
TRANSFER
In Bank of Punjab (BOP) the job changes in the organization through transfer. After every three
years employees transfer is due but after none he can also be transferred. On emergency basis
any employee can be transferred anywhere in any branch of (BOP).
DEMOTION
In the Bank of Punjab (BOP) there is no rule of demotion.
SEPARATIONS
In the Bank of Punjab (BOP) the employees can be separated from their jobs. The separation
can be in the following ways:
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Layoff
Termination
Resignation
Retirement
LAY OFF
Lay off mean suspension. In the Bank of Punjab the employee can be suspended as a punishment
due to some serious mistake in office work or due to some serious complaints.
TERMINATION
In the Bank of Punjab, an employee can be terminated due to some serious mistake in office
work, or due to some serious complaints.
RESIGNATION
In the Bank of Punjab, an employee can resign from job but there must be a 3 months notice
before resigning from job, otherwise 3 months salary will be deducted from the dues, due to
Bank of Punjab. If the employee is on contract there will be one month notice before resign,
otherwise one month deducted from dues.
PERFORMANCE APPRAISAL
Performance appraisal is working under the guidance of Mr. AHMED
ZAHEER and his assistant NOUMAN AND UMAR. During interview he
provided us this kind of information which is needed to be known for us:
At the beginning of the performance cycle, supervisors help their
employees write work plans that lay out the results the employee is
expected to achieve during the year.
Throughout the year, adjustments are made to keep performance on
track and plans are updated as priorities change.
Now, at the end of the year, it is time to summarize the actual results
achieved.
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"Doing" a performance appraisal entails collecting information, preparing a formal
document and holding a meeting with each employee.
The appraisal is a formal summary of the informal performance discussions that have
been taking place all year.
And it is an opportunity to reflect, identify trends and look ahead to the upcoming year.
As we know Performance appraisal means measuring the performance discussing it with
employee and taking corrective actions to remove that deficiency. Performance appraisal
is done annually at BOP.
Performance appraisal has following steps in The Bank of Punjab are:
STEP 1
Performance standards in Punjab bank are in the form of Duty List, Job Description and
Goals and objectives. General Manager and Chief Manager set these goals.
STEP 2
Goals are discussed with employee whenever there is a change in job goals or job
activities. To let the employee know what is expected of him.
STEP 3
To measure the performance is main soul of Performance appraisal. For this purpose one
standardized method is used called PA (Performance Appraisal) Form.
STEP 4
At this level difference between Actual performance and Performance goal is measured.
The difference is assessed gradually with time as the subordinated perform their duties and
report to supervisor. Supervisors observe their subordinates that how efficiently they are
doing the tasks assigned and what are their peers opinions about their behavior this builds
up the perception in the appraisers mind and he matches it with what was expected from
the employee.
STEP 5
To remove the deficiencies in performance corrective actions are taken. Employees are
counseled and asked to discuss their problems which they are facing.
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TRAINING & DEVELOPMENT
Training & Development department is working under Miss.
JAVERIA who looks after the training requirement of all over the
organization. There are 3 types of trainings which are given to
employees according to their requirement by our OTI (officer
training institute) where we had designed our training programs. There are following types:
For fresh hiring
Core Banking skills
I.T Skill
Soft skills of HR
In House training for permanent staff members to improving/polishing their skills.
Special course which is introduced by our external source (training institution).
LIST OF EXTERNAL SOURCE
There are following names of institutions from where B.O.P
trained their employees for their better performance.
ICIL
IBP
PIM
BDIs
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OCTARA
COMPENSATION
In B.O.P Compensation is working under Mr. SHAHEEN IQBAL Compensation, including
the overall system of rewards. Compensation provides the point at which organizational and
individual priorities and goals meet, encouraging the contentment of both parties. It provides the
driving force for effectively attracting needed human talent, retaining that talent and encouraging
the talent in enduring persistent, enviable and enhanced performance. While developing the
global compensation and benefit composition, HR must deal with many factors that are not
present in a domestic environment. B.O.P major function is to
maintain internal and external equity. Different type compensation and
benefits are given to the employees of the BOP. These rewards include
intrinsic and extrinsic rewards. Satisfaction derived from the job itself,
such in ones work, a feeling of accomplishment, or being a part of a
team. Extrinsic rewards include benefits provided by the employer,
usually money, promotion, or benefits. Compensation and benefits
were given according to the performance appraisal. This was done on
monthly annual and semiannual basis. There are following
compensation given by B.O.P to their employees:
Salary
Bonuses
TADA
Petrol facility
Medical allowance
Special allowance
Vehicle, bike, driver
House allowance
Phone facility and bill
Employees Loan
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BENEFITS
Benefits which were given to normal jobs include promotion, salary raise, allowances. A
residential scheme was also under consideration:
The Bank of Punjab (BOP) also offers many benefits to its employees.
The benefits are as follow:
Medical facility
Health Insurance (Complete family)
Staff loan
Convince allowance
House rent 45% of basic pay
Mobile plus card
Field allowance
EMPLOYEE RELATIONS
In B.O.P their aim is to recognizing the need and fulfills their
expectations at workplace. The banks management realizes the
necessity of existence of effective internal controls to ensure smooth
operations in current technical and swift business environment. The
key to a companys success is a reciprocal, balanced level of
expectations between the organizations and each of its employees. In
B.O.P managers are maintaining a positive, productive work
environment is critical for all managers. Our Employee Relations team
also supports the Consultation Ordinance Employee Management Committee with the goal of
increasing communication and understanding of the City's personnel rules, policies and
procedures. You accomplish this by engaging in:
Mentoring and coaching your staff
Regular feedback, including annual performance reviews
Open and honest communication regarding group, unit and university business issues
Change management strategies
Employee engagement and empowerment
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Fairly, assertively and promptly addressing workplace challenges and problems.
CONCLUSION &RECOMMENDATION
A managerial function tries to match an organizations needs to the skills and abilities of its
employees. Managers can gain support for best HR practices by
linking the use of HR practices to the solution of real business
problems, and to achieving tangible business goals. This
achievement of goals requires selection of well defined and
specific, measurable and realistic goals and communicating the
expected standard of performance to workers. Managers should
demonstrate how the benefits outweigh the costs of using best
HR practices. Speak the language of business people, i.e.,
money, not correlation coefficients. Etc. The Bank of Punjab is one
of the largest Banks with a network of 272 online branches in the
country. In the previous years from 2004 to 2007 it generates more
deposit and provides a large amount of advances to various sectors
in the country wide. The BOP providing excellence services to
customer as customer focus bank with a personnel of tremendous
skills and hardworking. The total assets of the BOP increased by
67.6% in the year of 2005 and further it also increased in 2006 by
148.6% & 254.6% in the year of 2007. The banks assets show
increasing trend from 2005 to 2007 but in 2008 the BOPs assets
decreased by 180.3%. The total liabilities as compare to total
assets shows increasing trend by 66.7%, 154.3% & 269.4% in
2005, 2006 & 2007 but total liabilities of the BOP also decreased
by 211.5% in 2008.
The mark up interest earned income is showing increasing trend since 2004 to 2008 and non
mark up income is also increasing since 2004. But the total income decrease in the end of 2008
due to a heavy provisioning against non performing advance. Now, the new management of the
BOP is performing and taking the present position of the BOP as challenge although they are
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performing well and beating the market with excellence services and strategies but they have to
face many problems.
FUTURE HR TRENDS
Workplace Flexibility: Collaborative work in a virtual office as well as flexible work
hours is one of future HR trends.
Global Business: Borderless business requires a global
workforce to perform the function at international business
level.
Work & Society: Working to live, not living to work
Workforce Development: Constant learning in a just-in-time format, learning
organization & high skill utilization
Definition of Jobs: Jobs get bigger & broader
Strategic Role of HR: Becoming leaders, not just partners
The Value of Predicting: Having a vision & a way to achieve it
BOP should start its operation in credit card. These cards are very helpful for the
ordinary customer in general and the business people in particular. To make it more
secure and to eliminate the misuse of it, the management is required to keep proper
security against the card.
BOP should adopt new compensation trends which include: Compensation should
also be based on the relative worth of the job for the organization. Job based salary
surveys and Industry surveys should be conducted to decide Compensations.
Compensations should be based on government policies and regulation and according to
inflation level in the country.
Else than tangible rewards intangible rewards such Work life balance (Providing good
leave structure, Flexible times for lunch break and Baby day care centers etc),
Inspiration and career opportunities for all employees, should be provided.
The services charges should be minimized to compete with the competitors by excellence
customer services.
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Presently, in order to enhance the deposit of the Bank, the BOP doesnt have staff at
lower level for getting more deposit in CASA & other terms deposit. Therefore, Bank
should hire the services of Business Development Officers particularly for this
assignment.
Although bank has its Quality Assurance Department (QAD) but it should be further
strengthen up to branch level. There should be an information desk to provide the
information and to receive the complaints of the customer in the bank. At present there is
no complaint box available in the branches and not any person appointed to hear the
complaints.
In order to facilitate the nation the bank of Punjab can play an important role in the
development of following sectors.
Training of Staff.
Good pay and incentive.
Working environment.
Education.
Health care.
Sports