Hbl Use Kpi Or Targets Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

HBL use KPIs or targets which they give annually to employees as a criteria to appraise their employees and measure their employee performance by observation the achieved targets out of 100% which is standard or a benchmark that is quality of work, team work, goal fulfillments, performance, customer services, behavior with colleagues and supervisors/managers and growth.

HBL process of performance appraisal system is they define their expectations, and then they measure or evaluate and provide feedback and hence their performance recorded. They judge their employee on achieving the annual targets which have provided them to achieve, even manager's evaluate the performance of employee by behavior of employees and punctuality and how productive they are, how knowledgeable employees are or are they satisfying their employees by giving time to them and the way they dress up.

HBL has assigned different weight ages out of 100, employee doing more than 100 or achieving target more than the benchmark that is an excellent job employee performing but if employee performing average discussion takes place between manager and its subordinate if employee becomes defensive, manager could easily sort out through his managerial skills.

HR is responsible for training of supervisors to improve their appraisal skills.

HBL use GRAPHICAL RATING SCALE METHOD or RANKING METHOD for appraising performance of an employee. HBL's Graphic Rating Scale method appraisal form contains three sheets; one is FORM B1, FORM B2, and FORM B3.


General information

the criteria to evaluate its employees



Level of achievement points.

Level of achievement point contains five points ratings

A (4),

B (3),

C (2),

D (0-1)


Area/factors contains five kind of factors which are


Individual \attributes


Customer Service



This form contains two big boxes.

First box is about Development Plan/ Supervisor comments.

Second box is called overall assessment box. Appraiser gives the overall performance grade to appraise in form of  A, B, C, D.

Then comments of appraise are also taken in form of agree/disagree.

After it final acceptance of appraise is also taken along with signatures.

HBL even use Ranking method to appraise their employees. Ranking methods compare one employee to another, resulting in an ordering of employees in relation to one another. Rankings often result in overall assessments of employees, rather than in specific judgments about a number of job components. Straight ranking requires an evaluator to order a group of employees from best to worst overall or from most effective to least effective in terms of a certain criterion. Alternative ranking makes the same demand, but the ranking process must be done in a specified manner (for example, by first selecting the best employee in a group, then the worst, then the second-best, then the second-worst, etc.).

HBL also use Forced Distribution Method which is a form of comparative evaluation in which an evaluator rates subordinates according to a specified distribution. Use of the forced distribution method is demonstrated by a manager who is told that he or she must rate subordinates according to the following distribution: 10 percent low; 20 percent below average; 40 percent average; 20 percent above average; and 10 percent high. In a group of 20 employees, two would have to be placed in the low category, four in the below-average category, eight in the average, four above average, and two would be placed in the highest category. It reflects the normal curve, a small percentage of ratees are required to be placed in the extremes (best and worst performers) larger percentages of ratees are placed toward the middle of the performance distribution. It is used for high executive level - Vice president and above him in HBL.A separate bell curve is developed according to function/branch category/division and group as per existing practice.

MBO (Management By Objectives) also used by HBL in which objectives are set to tell the management and employees what they have to achieve within the organization. This method is helpful as in it the performance of the employees is compared with the set goals and objectives of the organization. As the employees are also involved in assigning the objectives they are more like to perform well. HBL applies MBO process to increase organizational performance by aligning goals and subordinate objectives throughout the organization. MBO includes ongoing tracking and feedback in the process to reach objectives

Steps of MBO:

STEP1: Review organizational objectives

HBL's objective is to make other customer prosper and to create value for their stakeholders.

STEP2: Set worker objectives

To earn profit for the organization

STEP3: Monitor progress

•Less complaints

•Timely service is provided

•Monthly revenue and cost

STEP4: Evaluate performance

• Performance efficiency achieving his goals / targets.

•His performance is appraised with regard to the targets allocate to staff

 STEP5: Give rewards


•Special salary increase

•Cash price

Problems HBL goes through while making performance appraisal are the employee participation, feedback-seeking and unclear goals and standards, regency effects. Promotable or UN -promotable appraisal interviews both conducted in HBL.


Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Basically we are trying to figure out how well employees perform and then to ultimately improve that performance level. When used correctly, performance management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time.

Performance management at HBL is a forward looking process for setting goals and regularly checking progress towards achieving those goals. At HBL it is a continual feedback process whereby the observed outputs are measured and compared with the desired goals.Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management at HBL is a system of evaluating employees to help them reach reasonable goals and thus ensure that the company performs better.In HBL's performance management model employees are given opportunities to work on harder projects, paired less-skilled employees with expert employees and employees can direct and make decisions. At HBL growth is not a function of time but rather of performance.

Tools used by HBL for performance management are:

Developmental goal setting

Ongoing performance monitoring

Ongoing feedback

Coaching and support

Performance appraisal

Rewards, recognition, and compensation

At HBL if employee performing good he gets an increment of 10% annually. They monthly evaluate the performance which is effective for the employees to work best. Managers and Supervisors keep on giving their constructive feedback to increase employee's performance.

HBL performance management system covers all employees under the function sales, operational, finance, Hr, administration.

Purpose of Performance Management System

To access the performance

Basis for reward (Increment Bonus)

Basis for promotion Placement

Ascertain training and development needs

The results of process measured by with the will help in measuring the performance, based on balanced measure approach and to standardize format across the organization, which is the ranking method or graphical rating method, it depends on employee performance on average, below average, low or good.

HR performance Management System helps in increasing profit and Reducing Hr turnover.HR measured their satisfaction level through exit interview which can be good, excellent or poor. There is no involvement of stakeholders in ensuring performance management system.