FINAL PROJECT

BANK OF PUNJAB PERFORMANCE

MANAGEMENT SYSTEM

Submitted To:
Submitted By:

Table of Content

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
2

EXTERNAL WAY OF EMPLOYEES DEVELOPMENT.......................12

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

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.
Excellence: In everything we do.
Integrity: In all our dealings.
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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.

BOPS MANAGEMENT AND EMPLOYEES

Staff Strength
At present, the total number of employees in the organization is 4918.

2004

2005

2006

2007

2008

STAFF STRENGTH
5600
4900

4200 3806

3923

4120

4555

4918

# OF Employees

3500
2800
2100
1400
700
0

Years

Board of Directors (BOP)

Sr. #

Name

Status

01

Mr. Safdar Javaid Syed

Chairman

02
03
04
05
06
07
08

Mr. Naeem-Ud-Din Khan

Mr. Tariq Mehmood Pasha
Mr. Azhar Hamid
Mr. Shafqat Ellahi
Mr. Shafqat Mahmood
Mr. Waqar Ahmed Khan
Mr. Raza Saeed

President
Director
Director
Director
Director
Director
Secretary

BOP Top Level Management

Sr.#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Name
Mr. Khalid Siddiq Trimizey
Mr. Sajjad Hussain
Mr. Shahid Waqar Mahmood
Mr. Nadeem Amir
Mr. Sharjeal Masud
Mr. Zalmai Azam Durrani
Mr. S. M. Atif
Mr. Azhar Hussain Dilawari
Mr. Khawar S.Ansari
Mr. Ijaz ur Rehman Qureshi
Mr. Main Muhammad Sharif
Mr. Salman Saeed
Mr. Moazzam M Maneka
Mr. Amir Hameed
Mr. Sajid Arif Nomani
Mr. Irfanuddin
Mr. Moghis Bokari
Mr. Abdul Razzaq
Mr. Hafeez ud Din
Mr. Liaquat Ali
Mr. Momin Hyat
Mr. Ahmed Tariq Azam

Designation
Deputy Chief Executive Officer
Head of Special Project
Head Retail Banking
Chief Financial Officer
General Manager Operations & IT
General Manager Broad Base Liability
Head Consumer Banking Division (CBD)
Head IT
Head Treasury
Head of Audit & RAR
Head CAD
Head Credit Policy
Head Agriculture Credit Department
Head TPC
Head Establishment
Head C&CD
Head Human Resource
Chief Risk Officer
Head SAM
Country Commercial Head
Advisor Islamic Banking
Head Corporate

Auditors Committee

Mr. Kasir Zulifqar Khan

Mr. Salman Siddique

Chairman
Member
8

Mr. Khurram Iftikhar

Member

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
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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Performance Appraising

Compensating

Employees Relations
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.
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YEAR
2004-2005
2005-2006

TARGET
Deposit
200 Million
250 Million

Financing
150 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.

Internal way of employees development.

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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.

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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.

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

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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
OCTARA

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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

BENEFITS

Benefits which were given to normal jobs include promotion, salary raise, allowances. A
residential scheme was also under consideration:
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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
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
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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 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.

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Work & Society:

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

Working to live, not living to

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.
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
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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

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