CHAPTER I: INTRODUCTION
1. 1 Background
Achieving organizational goal through the performance management is usually the primary concern for many organizations, and many managers would gladly profess to be striving to manage the performance of their employees. In the survey of Nepal Bank Limited, it has been realized that satisfied employees just aren’t good enough.
There is obviously a strong link between managed performance, motivation and increased productivity, and that’s why it is necessary to measure and track changes in performance of the employees in regular basis. With better understanding of performance management related to the services, one can determine the actions required to meet overall organizational goal. Measuring performance of the employees also help to establish a high performance culture in which individuals and teams take responsibility for the continuous improvement of business processes and for their own skills and contributions within a framework provided by effective leadership.
Its key purpose is to focus people on doing the right things by achieving goal clarity. Specifically, performance management is about aligning individual objectives to organizational objectives and ensuring that individuals uphold corporate core values. It provides for expectations to be defined and agreed in terms of role responsibilities and accountabilities (expected to do), skills (expected to have) and behaviors (expected to be).
The aim is to develop the capacity of people to meet and exceed expectations and to achieve their full potential to the benefit of themselves and the organization. Importantly, performance management is concerned with ensuring that the support and guidance people need to develop and improve are readily available. Therefore, it is necessary to identify parameters that play a significant role in inducing the employees to perform effectively.
1.2 Nepal Bank Limited
Nepal Bank Limited, the first bank of Nepal was established on November 15, 1937 AD inaugurated by King Tribhuvan. This marked the beginning of an era of formal banking in Nepal. Nepal Bank Limited (NBL) was formed under the principal of joint venture between the government and general public. The head office of this bank is located at Dharmapath, Kathmandu.
NBL's authorized capital was Rs. 10 million & issued capital Rs. 2.5 million of which paid-up capital was Rs. 842 thousand with 10 shareholders. With the objectives of maintaining leading share of banking sector, providing competitive and customer oriented banking services to all the customers and reclaiming leadership within the national financial community, the bank has been rendering its services through its branch offices in the different geographical locations of the country.
1.2.1 Corporate Vision: The corporate vision of the bank is "Pioneer Bank with complete banking solution" 1.2.2 Mission Statement: The mission statement of NBL is best defined with the acronym ‘NEW’ Network for inclusion: Use bank's network to increase its reach all over the country from urban areas to rural areas and help in improving the lifestyle of rural population and in turn become the bank of choice of corporate, medium businesses and rural market Enhancing the value: To employees, shareholders, government and customers World class banking services: Provide world class banking services by achieving excellence in customer service and adopting high level technology standards.
1.2.3 Objectives of NBL
Nepal Bank Limited has the following objectives:
➢ Focus on building the positive net worth and meeting minimum capital requirement over the coming five years. ➢ Focus on increasing the customer base and market share. ➢ Maximize the potential/efficency of bank's staff.
➢ Focus on minimizing the risk associated with the business. ➢ Focus on providing the world class business solutions.
1.3 Objectives of the study