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It is one of the facts that organizations with brilliant in performance can survive in the highly competitive global market conditions. A motivational force is enough to drive and inspire the employees to do wonders for the organization. So, work force only create the success of the organization when properly trained, developed and properly motivated through intrinsic and extrinsic compensation rewards system.
The research will be conducted from performance management system (PMS) of the Pakistan banking industry. Main thing is that it focuses on activities of PMS like manpower planning, rewards & compensations, training & development, career planning. PMS is the powerful mechanism which helps in achieving the organizational objectives and further helps in its planning monitoring and evaluating its own performance.
The first proposition of doing the research study of PMS of the domestic banking industry is the significance of the workforce of an organization. Every organization has some aims to achieve and in order to achieve these aims organization has to acquire and use various resources in such way that they can contribute towards these goals or aims. As resources are both human and non-human such as physical, and these are very limited as well but human resource is main asset of any organization and must give special attention by organization in order to get desired results.
The second proposition is for human resource motivational force required to perform the given tasks and to confidently contribute towards achievement of organizational goals. For the achievement of goals there must be internal and external changes on environments. Internal environment includes existing structure, technology, needs and expectations of its work force and changing of the labour force while External environments includes social, political, economic and cultural changes.
Background of Muslim Commercial Bank Pakistan
My research will be on PMS in Muslim Commercial Bank (MCB) Pakistan.MCB was came into existence on 7th July, 1947 in Calcutta with the Capital of 30M.After partition bank head office was shifted to the Pakistan. Now bank has 6 foreign branches and 1209 domestic branches in Pakistan. Banks financial reputation in the market is strong and it's providing wide range of financial services and products to its customers. The performance appraisal forms as a part of PMS is basically originated from 2000 in the head quarter of bank and now it is being followed by all other branches in order to enhance success of the bank and give tasks and objectives to the employees by providing regular training and development programs.
Scope of Study:
The scope of this research is to study the process of planning, monitoring and evaluation of the performance management in international organizations and then to contrast and compare these procedures with the current PMS used inside the banking sector of Pakistan. So, I have chosen one of the leading local banks in Pakistan which is Muslim Commercial Bank (MCB) Pakistan to study the PMS of organization.
The main objective of the PMS in MCB is to provide a formal and regular training and development programme to enhance the work performance of employees by doing regular discussion with the supervisors and managers. And study will also discuss the future and past performances of the employees on the basis of assigned tasks and regular performance measurement in the MCB. PMS also helps in to provide important information that how to achieve goals and making decisions on promotions, salary increases, bonuses, transfers of staff and also give rewards.
The objectives of the conducting research on PMS of MCB are salient and discuss below:
To study the existing PMS of the Muslim Commercial Bank in Pakistan and also find out its strengths and weaknesses in the organization.
To study the hierarchy and cycle of performance management system in the MCB
To measure the work performance of employees and to identify their developmental and training needs for achieving organizational objectives.
To do comparative analysis of proposed PMS structure with the current PMS in MCB and also give some recommendations for improvements.
What and how Muslim commercial bank (MCB) is using PMS in order to achieve its goals?
How MCB should do planning, monitoring and evaluation of performance management by following the PMS of leading Organizations?
What hierarchy of performance management is use by MCB?
How often MCB review its performance management cycle inside the organization?
Who is responsible in the performance management activities and what activities should be measured?
What and how standards should be used or set and measured?
How quality improvement and decision making are carried out in the organization to get progress?
History and foundations of performance management:
A strategy which links to every aspects and procedures of the organization set in the agenda of its human resource policies, style and communication systems. It is the fact that every organization's strategy, procedure and their goals are different from each other. Taylor's pioneering Time and Motion studies has traced roots of PMS in the early 20th century .As a diverse and formal management practise used in the evaluation of work performance of the organization. PMS was being used is no more than 60 years old in some leading organizations.
Since the early 1990s "Chartered Institute of Personnel and Development" (CIPD) have combined the performance management with other related studies for example career and development management, talent management and training management to set the organizational objectives. If we see in the history, in late 1990s and early twenty first century heavily featured worked on employees and performance has done.so, training and development of employees was considered the part of performance management system.
CIPD has pointed out lack understanding of performance managements through its link to development, pay and most recently talent management to its place as a tool for line managers to direct skill and effort. CIPD also unconcealed the elements of PMS and showed the number of elements how can work together to create the PMS which was more appropriate for them.
What is Performance?
"You cannot measure or manage the performance If you cannot define it" Armstrong and Baron (2002). There are different definitions and sights on what performance is? It can also provide desired result by the strong bonding between organizational goals, strategies, customer satisfaction and economic development. Performance means also the behaviours of the performer and results of the performer's work which is assigned by the organization.
What is Performance Management?
Performance management is the process of assigning goals to the employees, giving proper training and check their regular performances for achieving the company's goals. It has mainly three parts: (1) Updating and maintaining the conversation between employee and manager to keep performance well, (2) setting rewards and opportunities for employee performance and (3) measuring actual performance with expected performance criteria.
What is Performance Management System?
An effective PMS is based on;
1. A process for updating and communicating employee performance opportunities by conducting annual performance appraisals and maintaining current performance discussion in the organization.
2. A process to inform employee about their performance that are below expectations.
3. A practise for boosting and encouraging the employee progress in the organization.
4. It is a training for managing performance and administering the system; and
5. A way for resolving employee performance pay disputes is the organization.
6. A process of doing strategic and financial planning and deliver key processes by allocating fair resources.
7. To achieve best value check financial performance and responsibility.
The Purpose of Performance Management System:
Performance Management System is playing an essential role in achieving the organizational goals, if managed properly then this system can give successful results to the organization.it can also help in achieving competitive advantages when organization has clear corporate strategies.
The main purpose of the PMS is to confirm that;
1. The performance of every employee helps in achieving the goals of the organization.
2. All employees of the organization have a clear understanding of their objectives and the quality and quantity of work which organization is expected from them.
3. All employees get feedback about how effectively and efficiently they are performing comparative to the expectations.
4. Based on employee performance Awards and salary increases are distributed which helps in motivating the employees to perform well.
5. For employee development and career opportunities are identified; and
Performance Measure Criteria:
Every organization has its own criteria to measure the employee performance through job analysis and design work. To evaluate performance management systems, there are three main measure criteria these are; validity, reliability and strategic congruence. These are discussed as follows;
The term validity means that PMS only assess the relevant aspects of the performance and it is also called content validity. For a valid performance only concerned areas related to employees' job should be measured. Validity should not be contaminated or deficient. A Contaminated measure means to measure those aspects that are not related to the job. While a Deficient measure means which does not measure all aspects of performance in the organization?
Reliability means stability and consistency of the performance measure. If two employees give the same evaluations of an individual job performance then performance measure will have 'Interrater reliability'. Another type of reliability measure is the 'test-retest reliability' that means the reliability over time.
Strategic congruence is basically related to the employee performance which congruent with the goals, strategies and organizational culture. In customer service organizations PMS provide guidance to the employees to serve and perform effectively and efficiently which leads the organization towards success. So, this requires the flexible system adapt to changes in the organization's strategic structure.
As Performance is measured at different levels and aspects of the organization so, it is important that all employees should have communication at all different levels from top to bottom and bottom to top. Figure 1 shows the links between different types of performance measures, and the levels at which they are used.
Figure 1 :The Hierarchy of Performance Management
Figure 2: The Plan-Do-Review-Revise Cycle Of Performance Management
The performance management cycle takes place over different time period at many different levels into the organization. Major strategic reviews and revisions may happen on annual cycle base or after 3 years while for detain review it happens monthly or quarterly. While in some organizations day to day cycle review happens to keep staff up to date about their performances by setting tasks in supervision of managers and supervisors.in my research on MCB I will get information regards their purpose, hierarchy and cycle of performance management.
Research Philosophy and Approaches:
The approach in which data about a phenomenon should be collected, analysed and used is called research philosophy. There are two terms epistemology and doxology. "Epistemology means what is known to be true as" and "Doxology means what is believed to be true includes the various philosophies of research approach". The process of transforming things 'believed' into things 'known': doxa to episteme, it is the purpose of the science. Another two major research philosophies have been recognized in the Western tradition of science by (Galliers, 1991), known as positivist "which means sometimes called scientific" and interpretivist "which means also known as antipositivist".
In my research I will use Interpretivist philosophy because in order to understand the reality personal involvement and communication is necessary. The positive element of interpretivist philosophy is the study of various phenomena in their natural environment together with the acknowledgement. Philosophers confess that maintaining the interpretation of reality is a part of scientific study. While positivist is also part of my research as it has also concern with involvement of objective in research knowledge.
Interpretivist philosophy would be required for my research study which relates my research objectives and questions together to understand the PMS in MCB. This research involves an element of PMS insofar as it was not previously followed by the organizations. This will help in analysing the measurement and implementation process of PMS in domestic organizations with the personal involvement. Sometime it is difficult to recognise the absence of objectivity attached with interpretivist research methods, I will also adopt a positivist approach for the improvement and development of my key research component.
The research can also be conducted by the positivist or phenomenological paradigm for evaluation of the impact of PMS. The major problem to this approach is that it only provide very less information while research require the deep and clear understating of inter and external factors of all aspects of the organization.
PMS is having great effect of the performance of the organization and helps to improve it as well. It is a continuous, strategic and integrative approach that has many steps; each step is important and adds value to the entire PMS.All the big organizations are benefitting from PMS because each and every step is interlinked with each other in the continuous process.
This research involves an effort to describe relationship of PMS that exist in reality, in the bank and with the analysis of different variables observer-researcher can get greater detail in reality than is typically possible in experimental and survey research. As researcher is observer so, I will use more descriptive and explanatory strategy to do more focus on "How?" and "why?" MCB Bank is using its PMS. And also by doing;
The Research will rely on theoretical background research, designing and implementation of bank observations in Pakistan including interviews and dialogue with relevant people (top level- bottom level management) for gaining first-hand knowledge about the PMS implementation.by doing direct and indirect observation of activities and phenomena and their environment.
The information and data will be analysed, compared with international experiences and presented in the form of a research dissertation highlighting some issues involved in PMS of MCB Pakistan and suggest, where required, recommendations and guidelines.
Assistance for this research will be taken by using both quantitative and qualitative approaches. Secondary data collection technique includes use of different textbooks, journals, case studies, research publications and Internet and documentations for example written, printed or electronic information, previous records and charts of PMS of the bank. While my main focus would be on qualitative data collection such as by conducting structured and unstructured interviews and discussions with staff of the MCB in Pakistan. Primary Data Collection technique and secondary data collection both techniques aimed at getting all possible information about the PMS being implemented in MCB. And interviews from managers and employees will help in observing actual behaviour of them towards their goals and objectives of organization. Establish rapport with respondent and good understanding of respondent's view. With this I can also have close observation and involvement of staff.
Many different universities and other agencies have their specific codes, rules, and policies relating to research ethics. East Carolina University has a variety of ethical policies relating to research.
Honesty, faith, responsibility and shared respect are the essential parts of ethics. These ethics also give a variety of other important social and moral values which includes animal welfare, social responsibility, human rights, health and safety and law rules and regulations.in my research I will follow ethical manners in following ways;
In my research I will follow all the ethical rules in order to provide honest, truth, knowledge, results, methods, procedures in order to avoid occurrence of errors in my research and will not make fake, or misrepresent information and also will not deceive the granting organizations, colleagues or the public.
In order to follow the ethical codes I will protect trustworthy communications, such as papers submitted for book or journals, employee records, business work, and any secret detail of Bank (MCB).
Respect for Intellectual Property
By conducting research I will not honour copyrights, charters, patents and other forms of knowledgeable assets or property of the organization. I will not misuse unpublished data, methods, or results without permission of the organization. And I will follow ethical codes and will give proper acknowledgement for all assistances to research and will not copy and imitate confidential thing.
I will access data by following different kinds of resources. My main focus would be on my research objectives, questions and research design process. I will visit to Pakistan for getting primary data collection and will also arrange appointments and meetings with managers and employees of the both banks in Pakistan regarding my research. I will also use secondary data from journals, books, by visiting both banks and their official websites, also by browsing university website Athens, and different articles. Beside this, for collecting secondary data I will read International standards for PMS, So that I can compare those with my research easily.
This research consists of both primary and secondary information. I will pursue the Content Analysis technique that is usually know as previous literature review which has been follow in the study of this research topic. Apart from this, cost factor will also be major issue because my dissertation research will require making a personal visit to Pakistan.
Timetable of the key activities for Dissertation
Name of Activities
Follow up meetings &
Regular contact with the supervisor would be maintained in order to receive feedback and continue the activities in the right direction throughout the period of the action applied for research project.