DESCRIPTIVE ANALYSIS OF PERFORMANCE APPRAISAL PRACTICES IN THE BANKING SECTOR OF PAKISTAN

Abstract

Management styles and business practices evolved and change with changing environment of Business. The changing business cultures also impact employee performance and behaviors. So it is important to adopt or modify strategies and management style with business changing domains. In such changing and complex environment Performance Appraisals has introduced as an effective source of employee management and it is among widely studied Human Resource disciplines, since the 21st century started. So, the topic related to Performance Appraisal is selected for research in the Banking Sector of Pakistan. This research is conducted by using primary and secondary sources of data collections. Research followed Case-Study format. The research was conducted to find out the Appraisal practices, methods and approaches used in Banks of Pakistan. To compare practices in the sector three banks (Muslim Commercial Bank, Standard Charted Bank Pakistan & National Bank of Pakistan) were selected. The intention of study is to search out Appraisal System in Banks. Pakistan banking industry is one of leading contributor in country’s economy. The sector provides employment to large number of population. Other reason for selecting banking sector is that being a service sector its effectiveness depends upon employee performance, which is the key of the success for the banks. Performance Appraisals help organizations to track out employee performance and address performance issues on time. Effective Appraisals are sources of employee satisfaction because employee aware of their contributions in organizational performance and get reward base on their performances. This significance of “Performance Appraisal” system leads to conduct this research. The research finds out importance, strengths and weaknesses of existing performance Appraisal Systems in banks. The literature in study mentioned International practices in “Performance Appraisal” discipline to compare Banks practices in Pakistan with contemporary approaches. Employees expectations and perceptions has also been seek out to look into gaps exist in management styles and employees perception with Appraisal systems