This document discusses proposed improvements to the reward system at The Bank of Punjab. It begins with an introduction to the company and outlines its current vision and financial performance. It then notes weaknesses in the current HR system, including salary compression, unclear appraisal policies, and nepotistic hiring. Suggested improvements are conducting salary surveys, developing clear performance and bonus policies, and creating a centralized grievance team. An action plan outlines activities over five years to implement these changes, addressing obstacles like budget constraints, employee buy-in, and outdated IT resources. The conclusion emphasizes reducing salary compression, enhancing the grievance platform, hiring graduates, and improving compensation and work environments for retail staff.

1. HUMAN RESOURCE
MANAGEMENT – PROJECT
TOPIC: REWARD SYSTEMS
GROUP MEMBERS:
ZUHAIR RIAZ 21E01030
WARDA ASGHAR 21E01008
MUHAMMAD BIN WASIM 21E01001

2. Contents
 Company Introduction
 Vision about the future role of HR in selected organization
 Major issues & challenges – strengths and weaknesses of current system
 Suggested improvements in the current system
 Action plan for implementing improvements (current state  desired state)
 Conclusion

3. Company Introduction
The Bank of Punjab Act,1989
Network of 662 branches & 614 ATMs
Head office-Main Boulevard, Lahore
GoPb -54.47% shares
Pioneer in tailored lending products
Kamyab Jawan Scheme & Low Cost Housing
Scheme
Branches
Punjab Sindh KPK
Balochistan Azad Kashmir Gilgit/Baltistan
Federal Capital

4. Introduction
Mission Statement
“Your Banking Partner in creating value & improving lives”
Vision Statement
“Meet Customer needs through innovative products & services to drive business growth while promoting
financial inclusion, diversity & prosperity across the nation with a motivated team through culture of excellence &
empathy”
Summary of the profits earned in the year-2021(Rupees in 000)
Financing 2,705,740
Investments 1,530,172
Placements(sale of securities) 351,056
Deposits with financial institutions 34,547
Total 4,621,515

5. Future role of HR
BOP will be more people-focused with value creation & talent mapping
Shift from traditional approaches to new approaches
The name,HRM,changed to POEG(People & organizational Excellence Group)
New initiatives
 Female Empowerment-
Online HR portal
Technical Trainings
Learning Thursdays

6. Strengths & Weaknesses of Current BOP
System
Weaknesses:
• Salary Compression – existing VS new hirings – resulting in lower motivation levels
• Unclear policy of appraisal system - inequality in performance bonuses / no transparency
• Bonuses for Retail Staff – back-bone of banking, change in policy resulting in lower
performance levels
• Hiring on nepotism – resulting in faulty selection procedure
Strengths:
• Platform to address grievances - Email platform for appraisal objections
• Good Promotion Policy - bi-annual promotion cycle to attract best talent in the market
• Attractive increments - above the industry benchmark due to growing phase
• Comprehensive training schedule for growing talent

7. Suggested improvements in the current
system
 Conduct salary surveys to mitigate salary compression & restore motivation
 Concrete steps to improve employee selection at organizational level
 Development of centralized team to handle employee grievances
 Develop clear policy of appraisal and bonus disbursement
 Enhance performance management by correction of policy regarding bonuses
of retail staff

8. Action plan for implementing
improvements
S
r.
ACTION PLAN
Milestone
Activities
Time in
Years
Resources
Required for
each Activity
Obstacles while bringing the
change
How to overcome the Obstacles
1 2 3 4 5
1
Motivational
Uplifting P
HR Dept.
Instructors
Employee
engagement
Budget (finance
dept.)
Indifferent employees & HR staff
Realize the importance of motivation
Directly linked to increase in productivity
2
Salary
Survey P
HR Dept.
Budget (finance
dept.)
Data collection
Inappropriate allocation of funds
Allocation of funds and time
Extenseive data collection to formulate a
competitive compensation structure
3
Employee
Selection P
HR Dept.
Budget (finance
dept.)
Supervisor
Allied Depts.
Reliability & validitiy of selection method
EI aspects overlooked
Nepotism/favoritism
Impact of negligent hiring - financial, legal
and image consequences
Enable the right person for the right job
Improving would enhance satisfaction and
work efficiency

9. Action plan for implementing
improvements (Cont.)
S
r.
ACTION PLAN
Milestone
Activities
Time in
Years
Resources
Required for
each Activity
Obstacles while bringing the
change
How to overcome the Obstacles
1 2 3 4 5
4
Improving
appraisal
system
P
IT Dept.
HR dept.
Budget (finance
dept.)
Trainers
Difficult to understand new appraisal
system
Time and fund constraints
Unavailability of trainers
Inept IT resources
Incorporate the latest software to gauge
employee performance (digital dashboards)
Allocation of funds and time - one time cost
Introduce centralized grievance portal
5
Enhancing
Performanc
e
Managemen
t
P
HR dept.
Budget (finance
dept.)
Trainers
Difficult to implement
Large allocation of funds required
Unavailability of trainers
Redesign performance management
Focus on strengths, clarity of purpose &
expectations
Collect quick, consistent, reliable,
measurable and differentiable data
Align with organization goals and link
compensation accordingly

10. Conclusion
 Curtail the usage of salary compressions
 Further enhance the grievance platform and make more use of it
 Hire new graduates
 Most importantly improve the overall work environment and salary packages of the retail
teams because they are the really heroes in this business.

11. THANK YOU