Study Of Compensation & Benefits System Of Abu Dhabi Commercial Bank (ADCB)

Select any company of your choice operating in UAE and study its compensation & benefits system. Based on information (Web, Questionnaire, Interview, Telephone Call, and Published Report) and understanding develop a comprehensive report following the given sequence:

1.Title Page

2.Acknowledgement

3.Table of Contents

4.Table of Tables and Figures

5.Executive Summary

6.Introduction about the Organization

7.Human Resource Management Department

Compensation and Benefits at your selected organization

1.The Pay Model in the organization

2.Strategic Perspectives of compensation in the organization

3.Internal Alignment is used by company, if yes/no why

4.Job Analysis in the organization

5.What is Competitiveness of your organization

6.How organization design Pay Levels, Mix, and Pay Structures

7.Performance Appraisals system of the organization

8.The Benefits Determination Process and Benefit Options opted by organization

9.Compensation of Special Groups in the organization

Pay Model and Pay Structures in Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank is also known as ADCB, it is one of the leading banks in the banking sector of United Arab Emirates (UAE). ADCN is the third largest bank in UAE and it is second largest bank in UAE in terms of assets. This bank was founded in the year 1985.It is headquartered in Abu Dhabi, United Arab Emirates. ADCB is a bank that performs commercial, investment, retail, merchant, brokerage and fund management activities. This bank operates through a network of 48 branches, 4 pay offices and 294 ATMs in UAE. ADDCB also has branches in abroad countries like India and UK. The Abu Dhabi commercial Bank has almost 4000 employees from across 49 nations .This bank has  a huge customer base with almost 460,000 retail customers and more than 34,000 clients from corporate and SME. The report discusses about the human resource management department of the Abu Dhabi Commercial Bank and provides details about the compensation and benefits of the organization, which includes the pay model, pay structures and others. An analysis is provided about the jobs that are offered by the organization, ADCB. The report discusses about the performance appraisal systems that are followed by the organization and identifies the competitiveness of the organization, ADCB. The report highlights the Benefit Determination Process and Benefit Options that are opted by the organization. The paper also provides the gap analysis in the organization and provides proper recommendations that should be implemented in order to address the gaps that are present in the organization, ADCB. 

Compensation and Benefits at ADCB

In the pay model of any organization there are four policies, which are used for determination of pay of the employee of the organization, it includes the internal alignment, external competitiveness, employee contributions .Out of these pay model policies or approaches, ADCB utilizes the internal alignment and external competitiveness as they are very important. Internal alignment monitors how job and other skills are related and how they are important in order to achieve the goals and objectives of the organization. The external competitiveness is another important pay model that is used in ADCB, it indicates the pay comparisons with the competitors of the organization. Compensation is a broad term and it is always interpreted in terms of organizational and individual perspectives. The strategic perspective of compensation that are followed by Abu Dhabi Commercial Bank is divided in two categories. It includes the perspective of  organization and it also includes perspective of employees .The perspective of organization that are followed by ADCB includes giving reward for work, monetary and non-monetary form ,term of employment contract which are based on job value ,contribution and performance . ADCB also emphasizes on the perspective of the employees in regards to compensation of the organization. The perspectives of the employees include livelihood, motivation and commitment towards achievement of organizational goals. The internal alignment of an organization refers to the relationship between the pay structure and the design of the organization and the work. It emphasizes on the designing of a pay structure, that aids the workflow and it is fair to employees and their behaviour aimed to achieve the organizational objectives. The internal alignment in an organization consists of the a group of commitments ,strategies ,policies and behaviors ,which plays  a key role in constructing integrated customer decision making based on the commercial of the supplier and ethical commitment and performance . The bank ADCB ‘s is very important both vertically  that is from the CEO level to the lower level and is also important horizontally that is across silos of the department .The top level of the UAE based bank ,ADCB consists of the Board of directors . The next level consists of the Internal Audit, Chief Executive Officer, Legal and Board Secretariat. The lower level of ADCB consists of various levels that includes the Government Relations, Human resources Group, Wholesale banking group, Consumer banking group, Group Business Servicers, Risk management, Treasury Investments. There are several components of Internal Alignments, which includes the Executive Commitment and support, Integrated Policies, strategy and structure, consistent internal Communication, meaningful information metrics and reporting, lastly incentives and accountability for the desired behaviors. Job analysis is the methodology that is used to gather data and information about the duties, responsibilities, necessary skills, outcomes and also the environment of work for a particular job. The extra results include the enrolling arrangements, position postings and the commercials and it also includes the improvements in the execution within the performance management system .The job analysis is the process or procedure of identifying then substances of a job, it  helps the examiner to comprehend the imperative knowledge of the job and how it is executed . The job analysis of the bank ADCB includes the following key factors: 

Job Analysis at ADCB

Surveying the job obligations of the present representatives

Examining the obligations of the work ,assignments and obligations that should be proficient by the representatives filling the position

Looking into and offering to different organizations that have comparable jobs

Competitiveness in an organization includes the permanent capability of then organization to deliver superior or high quality products consistently and persistently .This is done in order to surpass the competition in the market and also to acquire new customer. It also involves increasing the presence of the organization in the market .The concept of competitiveness is getting much importance and every organization is stressing of analysis of competitiveness by finding effective solutions for the management to gain a competitive edge over the rivals . The Abu Dhabi Commercial Bank has as many as 4000 employees from across 49 nations all over the world . The Abu Dhabi Commercial Bank has a huge customer base with almost 460,000 retail customers, more than 34,000 clients from corporate, and SME (Small and Medium scale Enterprises). The major competitors of ADCB in the banking sector of United Arab Emirates or UAE includes Emirates NBD, RAK Bank (National bank of Ras Al-Khaimah PJSC), NBAD (National bank of Abu Dhabi) and Commercial bank International (CBI). The bank Abu Dhabi Commercial Bank follows some key aspects or factors in order to design the pay-level for the banking organization. This key factors or aspects includes  specifying the pay-level policy ,defines the purpose of the survey , specifies relevant market ,design and conduct survey ,interpret and also apply the result and lastly design grades or ranges or the bands . Translation of external pay policy into real practice requires information on the market, which is external. The surveys provides the necessary data for converting these data into pay levels ,pay mix and structures .Thus it is well understood that the surveys are the process that involves collection of data and also involves judging about the compensation that are paid by the other employers . In order to design the pay levels ,mix and the pay structures following steps are followed by Abu Dhabi Commercial Bank are :

• Pay relationships among the organization
• Set Policy
• Select the market
• Design the survey
• Draw policy Lines
• Merge internal and external pressures

After performing the following steps, Abu Dhabi commercial Bank designs their Pay level, Mix and Pay structures. Performance appraisal system solve the problems of review system in organization  by managing it more efficiently and an effectively for the managers and the employees . In order to retain the top performing employees it is necessary to recognize them and compensate them properly. With the use of performance appraisal system ,it is ensured that all the projects are on the track and it is aimed to achieve the organizational goals and they are aligned with goals of the company . The performance appraisal system is better than a simple database for the annual performance as by using the performance appraisal system in order to estimate the readiness for promotion and also to find the successors in an organization .There are several performance appraisal tools that are used in for designing the performance appraisal systems. The bank Abu Dhabi Commercial bank follows the three performance appraisal methods .The three methods includes ranking method ,Rating scale  and Checklist method .In the ranking method the rater who does the ranking ,rank his subordinates on the overall performance . It involves ranking an employee considering the rank of other employee. By this method, it is easier to rank the employees judging their performance and the best and worst employee can be easily identified. In the method that uses the rating scale, there are numeric scales that represent the job related performance such as the dependability, initiative output attendance and several other factors. The numeric scales of these factors are computed and the final obtained scores is concluded and derived. The checklist method, the checklist statement of the trait of the employees is prepared in the form of yes or no. In this method, the rater who rates has fewer tasks as he only reports the checking, the department of HR evaluates from the provided checklists. The employee benefits of the bank ,ADCB includes the part of the total compensation package  that excludes the pay for time worked that are provide to the employees in whole or in part by the payments of the employer .It includes the life insurance ,pension, worker compensation and vacation. The special groups in the bank, ADCB includes people who are  strategically important to the organization . The bank, ADCB provides the special group people special treatment with add-on packages that are not received by other employees of the bank .The compensation components provided to them are unique in respect to the other employees of the bank. Some of the compensation that bare provide to the corporate directors includes annual retainer, attendance fess, fees for the participation on subcommittees. 

Competitiveness at Abu Dhabi Commercial Bank

After analyzing the compensation and benefits provided by the bank, Abu Dhabi Commercial Bank ,some of the gaps that have been identified are as mismatches between available needs and employee benefits and not using reliable longitudinal metrics . It is recommended to use the reliable longitudinal metrics in order to assess the benefits that are being provided to the employees of the bank and find out whether the benefits that are provide to them are meting employee needs and whether they are being administered efficiently and effectively. There are also some mismatches identified between the available benefits and employee needs. It is strongly recommended that the  employee benefits that are offered are consistent across the category of the employees .It is recommended that the uniform leave benefits are provided ,supplemental benefits are streamlined and it is also recommended to create a single ,unified system of paid leave for the WRs-eligible employees of the ADCB bank . 

Conclusion

The report provides a detailed study about the compensation and befits that are provided by the bank, Abu Dhabi Commercial Bank. After analyzing the compensation and benefits that includes the pay model, internal alignment ,job analysis ,competitiveness ,compensation benefits process and compensation to the special groups of the organization ,it has been identified  that the compensation structure of the organization is well organized and structured . However, the paper identifies some of the gaps in the compensation and benefits system of the organization. Considering the gaps, proper recommendations have been provided in the paper . 

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