RESEARCH PROPOSAL

Project for Performance Management

MS-MANAGEMNET SCIENCES- HRM (1st Semester)

SUPERVISOR: Dr. SARMAD

Sunila Pervez Malik

SAP ID 29391
Table of Contents
DECLARATION..........................................................................................................................................................I
ACKNOWLEDGEMENTS.......................................................................................................................................II
DRAFT ABSTRACT OF RESEARCH PROPOSAL...........................................................................................III
CHAPTER # 01 - INTRODUCTION.......................................................................................................................1

1. BACKGROUND OF ASKARI COMMERCIAL BANK LIMITED (AKBL)...........................................1

2. ANALYSES OF HR AND PERFORMANCE MANAGEMENT FUNCTIONS - AKBL......................1

2.1 Recruitment & Selection and Organizational Commitment of Employees................................................2

2.2 Training and Organizational Commitment of Employees.........................................................................4
2.3 Performance Evaluation and Organizational Commitment of Employees.................................................5
2.4 Compensation and Organizational Commitment of Employees.................................................................6

3. DIAGNOSE THE PROBLEMS.....................................................................................................................8

 DECLARATION

This declaration is made on the 11th day of April 2021

I Sunila Pervez – SAP ID 29391, student of MS in Management Sciences 1st Semester

at Riphah International University hereby declare that the work submitted for the
Project is my original work, I have not copied it from any other student or source except
where due reference is made clearly.

i|Page
 ACKNOWLEDGEMENTS

All the praise for Allah, the most merciful and beneficial, who blessed us with the
knowledge, gave us the courage and allowed us to accomplish this task. I am
specifically indebted and thankful to Dr Sarmad who gave us this project which
provided a wonderful opportunity to understand all the aspects of Human Resource
Management and its linkage with Performance Management along with the impact on
performance of employee. A lot of new aspects were learned during this research
project and these will help us a lot in upcoming professional challenges. Secondly, I
would like to thank the staff of Askari Bank F-8 Markaz Branch, Islamabad who were
very supportive and provide all required information.

ii | P a g e
 DRAFT ABSTRACT OF RESEARCH PROPOSAL

Human Resource Management practices plays a vital role in accomplishment of

organizational goals. HR practices are considered as facilitator for employee’s
participations and achieving organizational goals. Better HR practices will help in
retaining employees and achieving maximum productivity. My Research Report deals
with different HR Practices and their impact on employee performance at Askari
Commercial Bank Limited.

In first chapter of this report, Askari Banks profile along with major HR functions
practiced in bank are discussed. Draft problem summary is also discussed in this
section.

In second chapter of this report, final problem with research objectives will be
discussed. It comprises of Research Questionnaire, Research gap and model.

In third chapter of this report, Performance Management practices in AKBL are

discussed. Variables, hypothesis statement and methodology are discussed in detail.

Fourth and final chapter of this report consists of findings, possible solutions and
references.

iii | P a g e
 CHAPTER # 01 - INTRODUCTION
1. BACKGROUND OF ASKARI COMMERCIAL BANK LIMITED
(AKBL)

Askari Commercial Bank Limited (AKBL) was incorporated in Pakistan on October 9,

1991, as a public limited company. It commenced operation on April 1, 1992, and is
principally engaged in the business of banking, as defined in the Banking Companies
Ordinance, 1962. The Bank is listed on Pakistan Stock Exchange (earlier it was listed on
Karachi, Lahore and Islamabad Stock Exchanges).
Since inception, the bank has concentrated on growth through improving service
quality, investment in technology and people, utilizing its extensive branch network
which includes Islamic and agricultural banking. Over the years, AKBL has grown its
branch network and maintained its position as one of the largest private sector bank in
Pakistan with over 442 Conventional Branched, 95 Islamic Branches and a shared
network of 4,713 online ATMs covering all major cities in Pakistan supports the
delivery channel for customer service. As at June 30, 2020 the Bank had equity of Rs
50.762 Billion and total assets of Rs 946.875 Billion, with 1.45 million banking customers,
serviced by 7,955 employees.

2. ANALYSES OF HR AND PERFORMANCE MANAGEMENT

FUNCTIONS - AKBL

Asakri Bank has a progressive and dynamic HR Functions. HR philosophy of AKBL

says, “To become the employer of 1st choice in the Region”. AKBL believe in putting
their PEOPLE first, by bringing together the collective expertise, insight, and
professionalism, will grow individually and succeed collectively. AKBL utilize a variety
of methods and tools to determine their current and potential employees’ skill level and
motivations. Key factors of AKBL HR strategy are:

a. Enabling work environment for employees to be happy and motivated

b. Considering Respect as a fundamental right of every employee in every
workplace
c. Strongly believe in Team spirit and value participation of each team member.
d. AKBL ensure that employees Learn new skills, develop their capabilities and
Grow their knowledge and careers.
e. Employees’ involvement & empowerment to have an impact on decisions
that are made about their job procedures, performance evaluation tools and
policies to create engaged employee’s willingness to put forth their
discretionary energy for the business.
f. Invest in Leadership by having strong focus on potential staff members.

1|Page
 An organizations success is determined by the skills, involvement and commitment of
its employees. Workforce for any organization is the greatest asset in terms of working
and generating profits. Efficient HR Practices can help employees to align their goals
with the goals of organization. The overall working and perception of employees
towards their HR contributes in positive impact on employee’s performance and
improve the productivity of organizations. AKBL HR Department is in line with latest
trends of HR. Key HR functions being practiced in AKBL are:

a. Recruitment & Selection

b. Performance Management & Career Progression
c. Training & Development
d. Compensation & Benefits

2.1 Recruitment & Selection and Organizational Commitment of

Employees

Over a past few decades HR Department has become the backbone of company’s
proposed plans and management systems. Primary aim of Recruitment and Selection is
to hire skillful person at a minimum cost to meet HR Demands. Recruitment is the act of
obtaining names of the potential candidates for the job while the process of selection
includes carefully appointing the right people for the job. Job analysis plays a vital role
in selecting the right person for the right job. It is a set of skills and qualifications that
are required to perform a specific job. It also includes the job descriptions /
responsibilities that individual has to perform once hired.
All HR strategies at Askari bank are derived from its Corporate Structure Plan.
Recruitment needs are determined. Recruitment is projected at all levels of management
i.e entry, middle and senior level. Under mentioned reasons normally created a need of
recruitment of new employees:

a. Separation office staff – Banking is intensively competitive. So Askari

bank do faces the issue of turnover.
a. Termination is on the basis of fraud and forgery.
b. Dismissal- it is not based on fraud and forgery but on any other
unethical values such as absenteeism etc.
c. Demotion – Penalization bases on fine etc.

2.1.1 Recruitment for Entry Levels

There are two types of employees that are hired for entry levels

a. Junior Officers- Junior Officers are hired according to the needs of different
branches and departments. There work is non-managerial and clerical in nature.

2|Page
 b. Management Training Officers- MTOs are hired only once in a year, and they are
selected for middle level executive posts.

2.1.2 Recruitment for Middle Management and Senior Management

For senior management employee referrals are taken. Because Networking is very
strong among banking sector.

b. Only interviews are conducted for hiring senior management.

c. Hiring authority is defined by the grade of hiring/requirement of job.
d. For hiring middle level managers, the jobs are outsourced and advertised.

Online recruitment form is required to be filled by all applicant’s interest to apply.

Regular / standard Selection process is followed by AKBL that includes shortlisting,
Written Test, Interview, Back ground investigation of qualified candidates.

2.1.3 Job Description

A detailed JD document is available for key positions of AKBL. Generally, JD is

designed as:

e. Identified position- Job description is documented; which is governing part

of the job.
f. The job design for ASKARI bank employees includes the job-designation and
report system
g. The job-description includes the roles and responsibilities and
accountabilities.
h. The Volume of job is defined i.e. Position.
i. Work load defines the position like an OG II can never be a branch manager
j. Job description form is used to define what a person is doing at present. It is
narrative and covers broader spectrum
k. Goal setting form- Achieve high performance. It helps to set SMART goals.

2.1.4 Job Specification

The job specification document at AKBL is prepared to document the details like
minimum qualification, special training requirement and experience.

2.2 Training and Organizational Commitment of Employees

Training is generally defined as an array of activities that are executed by the

organization to foster the learning abilities and skills of employees. Training is

3|Page
 considered as a costly investment on human capital therefore, normally organizations
are reluctant in conducting regular training programs. Despite of a costly investment
the benefits derived from conduct of training are far greater than the investment. By
effective training and development programs organizations can attain a positive change
in behavior and commitment level of employees. AKBL consider it employees career
progression and development at their first priority. The believes that the main objective
of training employees is to diminish the performance gap between job characteristics
and employee competencies to perform that job at best. It helps in developing both
technical and non-technical skills of the employees. Training Need Analysis is carried
out at the beginning of the year, managers have to mention that which employee
requires training in certain areas. AKBL have their training academies in Karachi,
Lahore and Islamabad. Selected individuals undergo training a training for at least 3 x
days in one calendar year.

2.2.1 Training for Different Categories of Employees

a. Junior Officers (JO): After selection JO’s have to attend a 2 weeks Theoretical
Training Session. Training mainly comprises of General Banking and Personality
Development related subjects.
b. Management Trainee Officers (MTO): 2 to 3 months Theoretical Training Session
followed by On Job Training (OJT) for another one year. The Theoretical Training
Session is conducted by the Training Centre, through formal lectures and presentation
techniques. Whereas, OJT is conducted at relevant branches and departments. MTOs
get training in all specializations / areas of banking sector that includes General
Banking, Credit, Foreign Trade and Personality Development.

2.2.2 Types of Training

a. In house Training: Provided to lower level employees and managers. IN

house training is conducted with in the organization / bank or at the
training academies.
b. Ex-hose Training: Training agencies and consulting agencies, locally
and internationally carry out training sessions for senior managers and
branch heads. Short courses and workshops are offered by different
universities. Advance trainings are planned internationally for country.
c. Certain training programs at AKBL includes:
i. Classroom training
ii. Business Games
iii. Case Studies Topics
iv. Written and Oral Assignments
v. Role Plays
vi. On the Job Training

4|Page
 vii. Team Learning
viii. Degrees & Certifications
ix. Simulation Training

2.2.3 Employee Development at ASKARI Bank Limited

a. On Job Degrees and Certifications: All AKBL employees are given

opportunity for enhancing their skills and knowledge by attaining higher
degrees and certifications in their respective fields. Askari Bank has more
than 50 refresher courses in different area of banking and management.
b. Sabbaticals for Training: For refresher courses, which are usually not
longer than 7 to 10 days, sabbaticals are given to the employees to
motivate them to avail opportunities.
c. Assessment Centers: Leaderless group discussions are occasionally held at all
branches and departments followed by conferences at meetings between employees and
among executives and board of directors on regular basis.
d. Employee Assistance Program: All employees at ACBL are given the opportunity to
get themselves proper training in their desired areas, Employees do an informal
counselling with their supervisors for better on job performance and career
development.

2.3 Performance Evaluation and Organizational Commitment of

Employees

Performance evaluation is considered as the most critical HR Practice by the

management of Organization. It helps in identifying the career development
opportunities, promotion opportunities, perks and pay raise decisions of employees.
Performance Evaluations are held to monitor the performance of employees are held to
monitor the performance of employee at work and help them to improve their
performance which will ultimately results in improving the performance of
organization. Different research studies have found a direct impact of satisfaction from
performance appraisal on motivation, commitment and intention of employees to
continue working with the organization.
“Job evaluation is a systematic process of defining the relative worth or size of jobs
within an organization in order to establish internal relativities”

2.3.1 Annual Performance Form

AKBL is following MBO based and competency based performance system. It is directly
linked with the increment employees will be getting at the end of year. Promotions

5|Page
2.3.2 Performance Management System

SMART goals are set for every employee in the beginning of year.

a. Goal setting forms are filled for each employee.

b. Whatever goal is set it is signed by the employee and it is maintained
throughout the year by the branch. And then at the end of the year
evaluation is carried out on a scale of 1-5.
c. Competencies are in the performance appraisal competencies are defined for
each job.
d. The performance appraisal contains nine sections.

2.3.3 Promotion and Organizational Commitment of Employees

Promotion holds a vital position in career development of employees and varies in

organizations on basis of merit and seniority. AKBL practices promotional activities on
the basis of merit and employee performance. AKCL believes in performance based
incentives and promotions. Performance is compared with the set target already
communicated to the employee, on the basis of his performance he is recommended for
promotion or otherwise. Performance Recommendation Form plays a vital role in
promotions and pay raises of the employees. Being confidential in nature, form is filled
by Line Managers on the basis of last 2 years’ performance and on ground working of
the employee.

2.4 Compensation and Organizational Commitment of Employees

Compensation is one of the key HR practice that plays a vital role in enhancing
employees satisfaction, motivation and commitment towards the organization. It can be
monetary or non-monetary in nature. Pay is classified as absolute and relative pay.
Absolute Pay is categorized as Fixed Salary which employees received no matter what.
Relative Pay is out-put based and may vary according to the targets achieved at work.
AKBL compensation policy is based on employee performance and market trends.
AKBL compensation is divided as monetary and non-monetary compensation:

2.4.1 Monetary Benefits:

a. Basic salary + House Rent Allowance is given (which is 45% of basic salary)
for regular and contractual employees.
b. Medical allowance is provided for outdoor patients.
c. Fuel Allowance is provided for office and personal transport of employees
from OG III and onwards in liters.

6|Page
 d. Gross salary is calculated as % of house rent + Utilities + Medical + Basic
Salary.
e. LFA is only provided for regular employees and includes one-month salary.
f. End of service benefit: contribution fund of employee and employer (it is 8.33
% of Basic Salary). This allowance is given after probation period ends and is
given on yearly basis.
g. Gradate- is another allowance that is given after completing three years on
job to all the regular employees.

2.4.2 Non-Monetary Benefits:

a. Leaves: All leaves are paid and an employee must avail at least 15 x
leaves once a year.
i. 10 x Casual leaves
ii. 20 x Privilege leaves
iii. 10 x Medical leaves (on provision of medical certificate)
iv. 1 x month LFA
v. Maternity Leaves for two months after the birth of the baby. Allotted
to all female employees.
vi. Iddat leave granted on Islamic period to all widows.
vii. 25 x Hajj leaves once in service.
viii. Extraordinary Leave is without pay for studying. Without pay leaves
are allowed on certain circumstances.
b. Misc Benefits:
i. Hospitalization: 3 x basic salaries incase if availed
ii. Subsidized loan: 18% per annum
iii. Car financing at zero-mark up
iv. All executives are given residential telephone whose bills are paid by
the bank
v. Furniture and fixture allowance
vi. SVP and above are given club membership (for networking and
creating social contacts)

3. DIAGNOSE THE PROBLEMS

HRM practices refers to actions of any organization to accomplish organizational goals

through effective management of its Human Resources. Employee behavior is the
consequence of HR practices, these practices attempt to facilitate employee
participations and provide support for continuous in organization. Banking sector in
Pakistan has evolved over a period of time. Inconsistent HRM practices, prolonged
timings and inadequate use of technology has resulted in dissatisfaction, higher

7|Page
turnover, absenteeism and poor performance which will ultimately results in decrease
in growth and profitability of banks.
All key HR practices of AKBL were analyzed and through already available researches
it was revealed that majority of employee performance is affected by inadequate or
inconsistent HR practices. Effect of Compensation Packages and Training Opportunities
provided to employees will be discussed in detail with their effect on Job Satisfaction
and Employee performance / commitment towards Job. Certain challenges AKBL
HRM is facing includes:

a. Retention of talented employees by keeping them motivated and committed to

perform to maximum of their capabilities.
b. Stress that employees bare due to an adequate amount of time spent in banks
which often decrease their performance.
c. Workload, target stress and lack of support from supervisors also add in
decrease of performance.
d. Commitment of employee / employee performance will be analyzed towards
AKBL under the influence of Training and Compensation offered to employees.
e. This study will revolve around the impact of Performance Management on
Employee Performance on employees in Asakri Bank, G-8 Markaz Branch,
Islamabad.
f. Influence of Compensation on Employee Performance will be analyzed.
g. Influence of Training / Development on Employee Performance will be
analyzed.

8|Page
Reference:
Kloot, L., & Martin, J. (2000). Strategic performance management: A balanced approach
to performance management issues in local government. Management accounting
research, 11(2), 231-251.
Colli, L. A. (2013). The performance management system of the department of economic
development and tourism (Western Cape) (Doctoral dissertation, Cape Peninsula
University of Technology).
Bragger, J. D., Kutcher, E. J., Menier, A., Sessa, V. I., & Sumner, K. (2014). Giving
nonselective downsizing a performance review. Human Resource Development
Review, 13(1), 58-78.
Rock, D., & Jones, B. (2015). Why more and more companies are ditching performance
ratings. Harvard Business Review, 8, 2-4.
Rynes, S. L., Gerhart, B., & Minette, K. A. (2004). The importance of pay in employee
motivation: Discrepancies between what people say and what they do. Human Resource
Management: Published in Cooperation with the School of Business Administration, The
University of Michigan and in alliance with the Society of Human Resources
Management, 43(4), 381-394.
Masood, T. (2010). Impact of human resource management (HRM) practices on
organizational performance: a mediating role of employee performance. Mohammad Ali
Jinnah University, Department of Management Sciences, Islamabad.
Macdonald, S., & Maclntyre, P. (1997). The generic job satisfaction scale: Scale
development and its correlates. Employee Assistance Quarterly, 13(2), 1-16.
Iqbal, S., & Hashmi, M. S. (2015). Impact of perceived organizational support on
employee retention with mediating role of psychological empowerment. Pakistan
Journal of Commerce and Social Sciences (PJCSS), 9(1), 18-34.

9|Page