8 Human Resource Management

8.1 Overview
The FY09 has proved to be yet another challenging and exciting year for human resource
management. The BSC management has been rigorously implementing a well deliberated
Organization Development and Change Management project in order to transform the
organization into a modern corporate entity. A multi pronged transformation strategy is
being pursued for the purpose which include; i) organizational restructuring, ii) strengthening
performance based culture, (iii) improving policies through consultation; (iv) bringing
cultural change through Organizational Development and Change Management Process; (v)
maintaining work-family balance and (vi) provision of congenial working environment. It is
heartening to report that these change initiatives have produced discernible improvements in
employees’ mindset, openness and courage climate, employees’ performance, decline in
grievances and trust in the senior management.

8.2 Organizational Restructuring

The organizational restructuring initiated in 2007 to improve the operational efficiency and
effectiveness has started yielding the desired results in the form of cross functional synergies,
improvement in the service standards and delivery and better coordination with SBP.
Similarly creation of new departments viz; Currency Management, Development Finance
Support, Training & Development and Quality Assurance has helped to develop close
network with key stakeholders; enhance the outreach and awareness of SBP and BSC
policies and programs, improve reputational capital of SBP and BSC by proactively taking
remedial measures in the delivery of services in existing and new areas of operations like
currency management, development finance, banking services etc.
8.2.1 Right sizing
As part of the strategic
Table 8.2.1 Working Strength of BSC
change management
S # Side As on end June
plan, the drive for FY08 FY09
rightsizing continued HOK Field Total HOK Field Total
Offices Offices
during the year in view 1 On secondment from SBP 25 11 36 30 21 51
of automation, business 2
On deputation to
- 7 7 - 7 7
process reengineering 3
Government departments
General side 408 2,073 2,481 410 1,993 2,403
and mechanization of 4 Cash side 0 1,739 1,739 - 1694 1,694
currency operations. 5
6
Engineering side
Other technical/ex-cadre
86
98
90
129
176
227
82
95
90
129
172
224
During the year under Total 617 4,049 4,666 617 3,934 4,551
report, the working
strength of BSC reduced from 4,666 on June 30, 2008 to 4,551 on June 30, 2009 (see Table
8.2.1) on account of regular retirements on superannuation, early retirement under Staff
Regulation and resignation, etc.
Annual Performance Review of SBP BSC FY09

8.2.2 Revamping Management Forums

The management forums like Heads of Departments (HODs) Forum and Chief Managers’
Conference were revamped and revived. The mandate of the HODs Forum was enlarged to
deliberate upon policy matters and strategic issues affecting the organization. Similarly the
forum of Chief Managers’ Conference was also made more strategic and policy oriented
besides using it as a platform for seeking first hand feedback and input on various policies.
With the regular assembly of these forums, the sense of belonging and participation, the
quality of input in the decision making process and implementation of policies has improved
significantly.
8.2.3 OD/ Change Management Process
To provide impetus to the management’s efforts to transform the BSC into an effective
operational arm of SBP, an Organizational Development/ Change Management process was
initiated last year with the hiring of external consultants – Sidat Hyder Morshed Associates-
to undertake a diagnostic study of the organization in the context of internal and external
environments and suggest OD/ Change management plan to bring cultural and attitudinal
changes in the organization to make a quality conscious service organization. The study has
culminated into different tangible reports on existing state of affairs in the organization,
future OD/ Change management action plan, monitoring and evaluation mechanism and
anticipated expenditures on implementation of proposed change management plan. The
outcomes of this study will be presented to the Governor/ Board soon.
8.2.4 Employee Perception Survey
In July 2008, a detailed Employee Perception Survey was also carried out by the consultant
M/s. Sidat Hyder Morshed Associates (SHMA) in all the offices and Head Office on the same
day i.e. 28th July, 2008 to gather feedback of the employees. Although the participation was
voluntary but still the overall participation rate was 71%. Further to win buy-in and alleviate
the employees’ concerns about the change process; the OD Coordinators (officers from
within the departments/ field offices) delivered awareness sessions in their departments and
Field Offices. The overwhelming majority of employees attended these sessions.
The management has proactively started actions on the findings of Employee Perception
Survey, for example, skills up-gradation programs, management development programs,
increasing communication across the organization at all levels etc.

8.3. Career Development

Providing adequate career development opportunities to the employees is also an important
component of the change management strategy being pursued by the BSC management. The
key career development initiatives taken during the year included creation of new position in
the salary scale of OG-6 and formulation and implementation of policy for transfer of
Treasury Officers (TOs) to general side. The following paragraphs discuss objectives and
expected impact of the initiatives:
8.3.1 Creation of new position in the salary scale of OG-6
In order to enhance career development opportunities particularly for the BSC Officers in
Grade 5 (OG-5), a new position in the salary scale of Officer Grade-6 was created during the
year. It has not only opened windows of opportunities for middle level managers but will

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 Human Resource Management

also help the management to build a pool of talented managers for filling the senior
management positions including Chief Mangers and Departmental Directors in future.
Also as a part of the career development and succession planning agenda, training programs,
both function specific and management focused, were designed and delivered during the
year for target group of officers in OG-5, OG-4 and OG-3 cadres. The programs covered
strategic management, conflict resolution, values and shared behaviors, customer services
and the core operational activities of BSC to sharpen the participants’ leadership and
analytical skills as well as their decision making capabilities.
Likewise a formal job rotation policy is being rigorously followed to groom future managers
in different capacities and assignments. Depending on performance, job enrichment and
enlargement is tailored to suit high performing managers.
Further, to encourage the employees to acquire professional qualification, the cash reward
scheme was launched during the year; under the scheme the employees acquiring higher
professional qualifications from HEC recognized universities would be granted a cash
reward of Rs.20,000/.
8.3.2 Opportunities for Treasury Officers
The Treasury Officers (TOs-OG-2 Cash side) and Assistant Treasury Officers (ATOs-OG-1
Cash side), constitute a bulk (more than 30%) of BSC workforce. The TOs under the
existing policy has no career progression opportunity, which was a source of de-motivation
amongst the TOs, particularly those having skills and qualification similar to their counter
parts (OG-2) in General Side. The policy for transfer of services of TOs to General Side was
thus revisited during the year and a revised policy was approved to make the transfers
through a transparent and competitive process, based on merit and suitability. The revised
policy requires written test to be conducted through external institution and interview for the
officers passing the written test. Under the revised policy, six TOs were transferred to
General Side as Officer Grade-2 during the year. This would allow them to compete with the
OG-2 in General Side for promotions etc in the next grade.

8.4 Strengthening Performance Culture

Promoting and strengthening performance based culture is critically important for bringing a
turnaround in BSC. A number of initiatives were taken during the year for the purpose,
which include the following:
8.4.1 New Performance Management System
As a part of ongoing drive for performance improvement and redefining HR policies on the
basis of employees’ performance, a competency based performance management system
(PMS) was implemented in BSC in a phased manner. Effective from FY08, it was
implemented for middle managers (OG-4 & above); from FY 09, the coverage of PMS was
extended to all OG-2 and above officers of BSC.
The introduction of new PMS for OG-2 & above was a key challenge during the year, which
required building ownership and understanding of the system amongst the employees, the
value it would create for the employees and the organization and explaining its
implementation process and procedures. The PMD in collaboration with T&DD conducted

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Annual Performance Review of SBP BSC FY09

orientation sessions, issued necessary circulars/ instructions and responded to a large

number of queries from appraisers/ appraisees at the time of planning and appraisal stages.
During the year, a total of 37 performance planning and 42 performance appraisal
workshops were conducted by a team of in-house trainers and facilitators across the country.
The focus of the workshops was alignment of performance goals with the overall strategic
objectives of the organization, and enabling the officers to effectively plan and manages their
performance. The workshops conducted as full day sessions, imparted hands-on training on
documenting goals, competencies and actual achievements/ behavioral examples at the time
of planning and appraisal respectively. Further on-spot facilitation was provided at field
offices through a dedicated team of PMS facilitators. At each phase of PMS planning and
appraisal, comprehensive guidelines were also issued for timely implementation of the
system. As a result of these efforts and management support, the appraisal process for FY09
was completed successfully across the organization.
8.4.2 Performance Based Promotions
The due recognition and reward of high Table 8.4.2 Promotions made during FY 2008-09
performance is also critically important for S# Cadre/ Grade No. of Promotion
strengthening and promoting the 1 From OG-5 to OG-6 4
performance based culture in the 2 From OG-4 to OG-5 5
organization. Promotions based on 3 From OG-3 to OG-4 23
4 From OG-2 to OG-3 30
transparent and objective criteria is one of 5 From OG-1 to OG-2 70
the best instruments for recognizing high 6 From Sr. Assistant to OG-1 8
performance as well as motivating other 7 Non Clerical Staff (Scale Promotion) 5
employees to improve their performance – Total 145
hence is a strong booster for inculcating
performance based culture.
During the year, a total of 132 officers were promoted including 4 from OG-5 to OG-6, 5
from OG-4 to OG-5, 23 from OG-3 to OG-4, 30 from OG-2 to OG-3, and 70 from OG-1-
OG-2 through a transparent process (Table 8.4.2). The ‘bench strength’ for promotions
was defined on the basis of last 3 years performance score and shortlisted candidates were
interviewed by the senior management on defined criteria.
Likewise eight Senior Assistants were also promoted to OG-1 and five Non Clerical Staff
were given scale promotion during the year.
8.4.3 Improvement in Annual Merit Increase
To further strengthen the performance based culture, Table 8.4.3 (a) Employees OG-2 & above
the Annual Merit Increase (AMI) rates were increased Performance AMI Rates (%)
Categories 2007-08 2008-09
by up to 75% over the last year’s rates for OG-2 and A 8 14
1
above and more than 100% for OG-1 and below . The B+ 6.5 11
top performers (A rated employees in OG-2 and B 4.5 7
C 2 3
above) were given 14% rise in salaries as compared to D Nil Nil
8% last year; the next best performers were given 11%
rise compared to 6.5% in the preceding year (see Table 8.4.3(a) for details). The top
performers of employees in OG-1 and below cadre were allowed 8% AMI compared to 4%

1
The OG-1 and below employees, which constitute 64% of the BSC workforce were given AMI at the rate
allowed to such officers and employees of the same group in SBP, the parent organization of the BSC.
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 Human Resource Management

last year; Table 8.4.3(b) gives the AMI rates for this Table 8.4.3 (b) Employees up to OG-1
group of employees. The difference in AMI rates of PER Marks
AMI Rates (%)
2007-08 2008-09
OG-2 and above and OG-1 and below employees is 46-50 4 8
attributed to substantial difference in the skill mix and 41-45 3 7
31-40 2 5
nature of jobs of the two employee cadres. 11-30 1 3
0-10 Nil Nil

The Forced Distribution Mechanism Table 8.4.3 (c) Rates of Annual Merit Increase
(FDM) was used to rate the employees in OG-2 & above (other than cash Cash Officers and OG-1 &
side) appraised under PMS below grade employees
Grade 2 & above (other than cash appraised under PER
officers) whereas the Cash Officers and Performance category % age of Marks % age of
employees in OG-1 and below grades Employees Range Employees
were rated under existing Performance A 15 46-50 20
Evaluation System. The Table 8.4.3(c) B+ 25 41-45 20

gives the performance categories and % B 50 31-40

60
age of employees placed in each C 8 11-30
D (optional) 2 0-10
category.
8.4.4 Increase in Hardship Allowance
Considering the difficulties being faced by the BSC employees posted at Muzaffarabad
Office after the October 2005 earthquake, the BSC Board during the year, approved the
management’s proposal for enhancing the hardship allowance to Rs. 4000 per month from
Rs.2000 per month across the board for all employees working in Muzaffarabad Office.

8.4.5 Initiatives for Lower Cadre Employees

Some special initiatives were taken during the year to improve the compensation and
allowances etc of lower cadre employees including the following:
8.4.5.1 Increase in salaries of Contractual Security Guards
During the FY09, the salary structure of Bank’s contractual security guards was revised to
bring their salaries at par with market rates and to motivate them for improving their
performance. The monthly salary of contractual security guards was increased by 30% after
merging the 17% Dearness Allowance with a maximum cap on monthly salary @ Rs.
16,000/-. The total increase in the salaries of the contractual security guards was thus up to
about 50% including the dearness allowance. Further, the coverage of Group Terms
Assurance (GTA) was also extended to the Contractual Security Guards as admissible to
regular security guards.
8.4.5.2 Rest & Recreation Facility for Clerical/ Non Clerical Employees
The leave encashment policy for Clerical/ Non-clerical employees was also revised during
the year and the facility of Rest & Recreation was extended to Clerical/Non-clerical
employees as well. Earlier these employees were allowed only the leave encashment facility
against their leave. Under the revised policy the Clerical/ Non-clerical employees are now
entitled to avail 15 days mandatory R&R leave with allowance @ 50% of monetized salary.
8.4.5.3 Increase in Overtime Allowance and Tuition Fees
The overtime allowance for Clerical/ Non-clerical employees and drivers was also enhanced
to adjust for the inflationary impact since the last revision. Similarly, the reimbursement rates
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Annual Performance Review of SBP BSC FY09

of educational expenses of the children of Non-clerical employees, Drivers and Gestetner

Operators were revised with effect from academic session 2009-2010 to enhance educational
opportunities for the children of the Non-clerical employees etc. Further, the amount of
merit scholarship for the children of employees up to OG-2 level was also increased for each
course of study.
These measures would not only provide cushion to the low grade employees against the
inflationary trends being experienced by the country since last couple of years but would also
be instrumental in improving their work performance.
8.4.6 Leave Encashment of Deceased Employees
The leave encashment policy was also reviewed during the year and the family members of
the deceased employees, duly nominated by the deceased employee, were allowed
encashment of unutilized leave balance of deceased employee for up to a maximum of 180
days.
8.4.7 Day Care Centers and Gymnasium
Day Care Centers have been set up at Head Office, Lahore and Islamabad offices. Day care
is typically an ongoing service during specific hours, such as the parent’s time at work.
Presently dozens of parents of SBP & BSC are availing the facilities of Day care whereas
many kids are looked after by Montessori trained staff employed over there. Employees are
getting day care facilities on very nominal rates and work with more satisfaction.
The BSC is facilitating the employees of both SBP & BSC by providing services of Health
club and Gymnasium. A large number of employees are enrolled and using variety of latest
equipments for physical fitness under the guidance of well trained instructors along with the
facility of Sauna and Jacuzzi on very nominal rates. The Health club and Gym is open to all
members from 7.00 am to 7.00 pm (Monday to Friday) and 7.00 am to 4.30 pm on Saturday.
8.4.8 Congenial Working Environment
Congenial work environment is crucial in retaining a motivated and high performing
workforce. The renovation of first floor of BSC Head Office building at Karachi was
completed during the year, while the renovation of 4th Floor was initiated which is likely to
be completed by the first half of FY09.
Further, efforts are being made to provide quality food at affordable prices to SBP and BSC
employees at two centrally air-conditioned cafeterias with excellent seating arrangements.
Drivers have also been provided a dedicated air conditioned room to relax and take breaks.

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