Performance Management Practices: A Case Study of Bank Al-Habib Pakistan

Abstract

Purpose: This paperexplores the relation betweenexercising different aspectof performance measures, connection to reward, and with the performance management systems (PMSs) effectiveness.It investigatesthe problems faced by the employees and appraiser in this system thus recommending the steps taken by the appraiser for the improvement of the employee’s performances in financial institutions.

Methodology:  primary and secondary data was collected. Qualitative and quantitative methodology is used bysurvey questionnaire and interviewing random sample of 30 respondents from bank Al-Habib. Furthermore it’s an exploratory study as it explores problems in performance management system of Bank Al-Habib.

Findings: The performance management system of financial institution of Pakistan especially bank Al-Habibare fairly focused towards performance related outcomes, and less concerned about the realization ofend product like training and development of employees. The results showed the strong relation between exercising different aspect of performance measures, connection to reward, and with the performance management systems (PMSs) effectiveness. Various variables were identified in influencing the effectiveness of PMS.

Practical implications: Findings showed that the financial institutions of Pakistan need to improve the efficiency of their PMS. It’s far advance and better now but still there’s a room for improvement.

Originality/value:This study may assist bank managers in identifying flaws and overcoming them regarding their PMS. It also provide the clear idea about the factors influencing the effectiveness of PMSs in the Banking context