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Detailed study of HR practices at National Bank of Pakistan and its comparison with international best models

By Muhammad Azeem Ur Rehman EMBA CM-15/2009

EXECUTIVE SUMMARY
The basic objective of the study is to understand the HR practices and procedures followed at NBP and World Bank. The reason for choosing World Bank is that it has one of the best HR systems in the world. It is also the most diverse organization in terms of cultural/ethnic, professional, as well as gender diversity. While the diverse nature of the bank is one of its strongest assets, it also presents the organization with its biggest HR management challenges. I wanted to have greater insight into the management practices regarding human resources followed there. The reason is to learn about the mission, vision, goals and objectives of the organization and their relation to Human Resources. The increasing trend of globalization in the past two decades has moved companies beyond their domestic operations into the international markets. This dramatic change in international businesses requires a dynamic workforce as such managers who have a challenging role in facing complex issues of managing people to gain or sustain a competitive advantage. Some key issues need to be given special attention. There will be more human resource activities involved in international operations than that in the domestic context. A broader perspective is required to manage people not only from home countries, but also from host countries and even from the third world countries. Therefore, the reason for choosing NBP was to study HR practices and how it can improve and update their HR systems. NBP maintains its position as Pakistan's premier bank determined to set higher standards of achievements.

SECTION I HR PRACTICES AT NBP

TABLE OF CONTENTS

TABLE OF CONTENTS
SECTION I HR PRACTICES AT NATIONAL BANK of PAKISTAN
Introduction HR Mission/Values NBP organizational Structure (Organograme) 6 Hierarchy of HR and HR Divisions 7 Importance of HR at National Bank of Pakistan 8 Recruitment Process Selection Process Training and Development Motivational Techniques Evaluation Case Analysis 5 5

9 9 10 10 17 20

SECTION II HR PRACTICES AT WORLD BANK

Introduction WBs Mission Statement HR at World Bank Recruitment Recruitment Process - Recruitment Clusters 20 Staff Exchange Programs Core Issues at WB Challenges Faced By Hr in World Bank 26 Analysis Comparison 19 19 19 20 22 24

26 34

Recommendations Conclusion

36 38

INTRODUCTION TO THE ORGANIZATION

Financial institutes play a major role in the development of the country. They are commonly referred as the backbone of the countrys economy. In Pakistan among other banks and financial institutes we have National Bank of Pakistan as a major player that plays a main role in boosting the economy and providing thousands of jobs, besides other important functions that it plays. This emerging Bank of Pakistan has the highest number of customers and is awarded the best bank award as well as the 9th bank in the world and 1st in the Asia. The NBP realized the importance of upgrading the quality of human resource to meet the challenge of competition. It developed strategic focus to motivate the employees for higher performance and maintaining industrial harmony. An internal survey was conducted to enable the bank employees identify the top challenges being faced by the Bank. The employees, mostly field functionaries, identified TECHNOLOGY and SKILLED MANPOWER as the top two challenges being faced by the Bank in its internal operations. The challenge of lack of skilled manpower directly reflected on the status of HR base of the Bank. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technological oriented products and services offered through its large network of branches locally, internationally and representative offices. The bank has a national presence with a history of contribution to their communities. The bank meets expectations through providing market-based solutions and products and rewarding entrepreneurial efforts and also creating value for all stakeholders HR Mission: Provide more talented Human Resource in all NBP functional areas in relation to competition keep motivated all the employees and maintain total industrial harmony. Values: NBP believes that; People make the organization People collectively yield results People have ambitions and aspirations to be distinguished and rewarded People form the human capital to be developed and invested in. Point of Presence - Domestic /Overseas Branches: National Bank has elaborated network of branches in the country. There are 29 regional offices, 1,256 branches and 4 subsidiaries. It has 22 overseas branches in different countries of the world. It is the only Pakistani bank to have representative offices in Canada, China, Uzbekistan and Azerbaijan, 1 subsidiary and 1 joint venture with United National bank of England. National Bank of Pakistan is the first international bank to establish a branch in Kabul. The Organizational structure of NBP is given below:

HR group is composed of five main divisions. Hierarchy of HR department at NBP is:

HUMAN RESOURCE MANAGEMENT ADMINISTRATION GROUP &

Dr. Mirza Abrar Baig Group Chief/SEVP

Moizuddin Khan EVP/Divisional Head Training& Organization Development Division

Muhammad Hassan Khaskheli Mohammad Iqbal Qasim EVP/Divisional Head EVP/Divisional Head Personnel& Industrial Sports Culture& Corporate , Relations Division Social Responsibility Division

Qamar Hussain EVP / Divisional Head HR Division

Muhammad Afsar SVP / Wing Head RecruitmentOutsourcing& , Regulations Wing

Muhammad Hanif EVP / Coordinator HR Special Projects

Fazal ur-Rehman EVP / HR Coordinator

A brief description of the different wings is given below: TRAINING & ORGANIZATIONAL DEVELOPMENT DIVISION Like other organizations NBP also has focused on the training aspect for its employees. The training & development department is headed by EVP who is divisional head for the T & D division. Training & Development in the NBP is a function to contribute in improving the overall organizational performance. It is the belief that T&D does not work since it is too difficult to prove its effectiveness in terms of calculating the Return on Investment (ROI) of T&D programs. With the huge investment in developing training strategies and programs, the question is no longer whether organizations should train or not, but rather it is about whether or not training is worthwhile and effective PERSONAL & INDUSTRIAL RELATIONS DIVISION The department s headed by EVP (Executive Vice President).Industrial Relations Wing has been set up to help stabilize healthy industrial relations and to ensure that conflicts at all levels are resolved in an amicable manner through bilateral discussions. The subsidiaries of the wing are also expected to promote harmonious industrial relations in the Bank. SPORTS, CULTURE & CSR DIVISION Corporate Social Responsibility (CSR) is a significant concept in the arena of business across Pakistan India as well as around the globe. It is becoming an important constituent of the mainstream corporate agenda. The growing importance of CSR has rewritten the relationship of business not just with shareholders, but also with other stakeholders including employees, supply chain partners, government,

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creditors, customers and communities. Engaging in CSR is thus a desired investment in the 21st century knowledge economy to further the development process for a sustainable future. And sport is an important factor in this paradigm. Whilst pure sports sponsorship is often a hard-nosed marketing and business decision, any CSR intervention is based more on how a business can improve the communities in which it operates. In addition to being an effective CSR medium, sport builds values that any socially-responsible business strives for and instills qualities like team work and fair play. Moreover, it involves employees and suppliers, as well as building good community relations. There are many examples of how businesses around the world use sport to fulfill their CSR objectives. The Bank has a separate Wing which is headed by a EVP and the wing has totally engaged in aligning the activities of CSR,sports and cultural activities within the organization. HR DIVISION The goal of the HR division is to prepare professionals who work in the National Bank Of Pakistan to deal with the complexities and challenges of HR and managing today's workforce. The division is headed by EVP who is responsible to ensure that the latest HR tools are implemented within the organization. His core responsibilities are to implement: 1. Specific HR functions include: - Recruitment and selection in the banking system - Employee development and Training - Benefits and Compensation - Employee Evaluation 2. 3. 4. 5. 6. 7. 8. 9. Strategic HR Management Managing Strategic Change Conflict Resolution Globalization and its impact on Human Resources management in NBP Customer Services in the Banking System (CRM) Synergetic Decision Making Leadership as a key factor in Human Resources Development Team work

RECRUITMENT, OUTSOURCING & REGULATIONS DIVISION The division is headed by SVP / EVP. The division is mainly responsible for recruitment process within the bank details of what are given in the following paragraphs. As for the regulations are concerned the most common objectives are: 1. Prudentialto reduce the level of risk bank creditors are exposed to (i.e. to protect depositors) 2. Systematic risk reductionto reduce the risk of disruption resulting from adverse trading conditions for NBP causing multiple or major failures 3. Avoid the risk used for criminal purposes, e.g. laundering the proceeds of crime 4. To protect banking confidentiality

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5. Credit allocationto direct credit to favored sectors

IMPORTANCE OF HR AT NATIONAL BANK OF PAKISTAN

HR is a critical function for any organizations survival. Since its the people who run the organization and if they are not managed efficiently, the organizations are destined to be doomed. HR is a strategic function that is deeply connected with the overall strategies of the organization both long and short term.

The main HR department has the following wings / subdepartments:

Institutional Disciplinary Wing Legal Affairs Industrial Relations Wing Personnel and Administration Wing Recruitment and Compensation Wing Staff loans and Welfare Wing HR Policies and Project Wing HRM (Main Function, Head Office)

These sub-functions are assigned particular duties and their names are based on the kind of duties they perform. Each one of these has about 8 to 10 members whose job focuses on the particular duties of the wing assigned to them. They work more like a team then as a function in the organization. As the group HR chief is of the rank of SEVP (Senior Executive Vice President) and the wings he (Group HR Chief) heads can be commanded / headed by gentlemen who can be from VP (Vice Presidents) to EVP (Executive Vice Presidents). Recruitment Process: NBP has two procedures for selection. The first one involves external selection and the second one involves internal selection process. For internal selection, the current workers are asked to refer people they know for jobs/vacancies available. For external selection the bank asks IBP (Institute of Bankers of Pakistan) to select employees for the bank. The bank places an advertisement in the News paper every year. The advertisement contains basic information about the nature of the job and the criteria that applicants must meet in order to qualify to be potential candidates. The criteria for example are to have a GPA above 3 on a 4 point scale and to have a masters degree in either Finance or MSC. If the applicants dont meet these basic criteria, they are rejected right away.

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Then the bank conducts the initial screening. After which their CVs are refereed to IBP for further tests and interviews. IBP stands for Institute of Bankers of Pakistan. IBP is an agency formed by different banks. The function of the IBP helps the bank for the selection of employees.

Selection Process: The selection process at NBP involves various steps. Those candidates that have been referred to IBP go through different tests and interviews. The candidates sent to IBP after initial scrutiny go through written test at IBP. IBP short lists the candidates, those who pass the test. The written test conducted at IBP consists of GMAT, GRE and questions related to management and mathematics, to check the soft skills of the candidates. Those candidates that are short listed after the written test at IBP, are invited for the group discussion, this group discussion also takes place at IBP. In the group discussion candidates are divided in the groups. In these groups, candidates are asked to perform different activities, which include:

Discussion on Topic: Candidate is given a topic, he/she has to speak on the topic. A group of
experts judge the communication skills and reasoning ability of the candidate.

Interview: Panel of the experts conduct the interview of the candidate.

After the interview and group discussion, IBP further short list the candidates. The list of the final candidates is sent to the NBP. NBP sends this list of candidates to the head office, Karachi. Candidates are invited to the head office for the final selection. Head of all the departments along with HR head conduct final interview of the candidates. At the final interview the panel conducting interview focus on the personality traits of the candidate, and check whether candidate has a presentable personality as he had been checked for the skills and abilities by the IBP. The candidates hired after this process are known as management trainees. They are OG3 officers. After selection these employees are trained by NBP. (grade 3)

CRITIQUE
Although NBP uses online application system for job placement for the management trainees and has conducted job fairs at various business schools but there is not a routine practice for talent hunt. The selection process at NBP for the MTOs (Management Trainee Officers) is based on written tests and GD (Group Discussions). The written test and GD is designed to test their overall intellectual capacity rather than their Banking knowledge. But the same procedure for hiring experiences staff does not evolve the same testing procedure and also it does not include questions to test their banking knowledge as well.

TRAINING AND DEVELOPMENT:

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Training at NBP - Brief Overview: Training has multiple advantages that an organization can have. Effective training will lead to the organization having premium employees with enhanced skill sets, which will help the firm to constantly adapt to changes in technology, regulation, and the business environment in general, especially in the banking sector, where technology now plays a major role. It also ensures that serious succession related issues do not creep up. NBP has a strong belief in training its employees and developing them and it spends a huge amount of money in this regard every year. Training is conducted for internal employees as well as employees hired as management trainees. The management trainees selected are required to go through different stages of the training, which are: Initial training that lasts for about 3 months at IBP. This training is based on general banking concepts and theories and is theoretical in nature. Once this initial training at IBP is completed, trainees return back to the NBP head office and are sent to the staff colleges of NBP. This training at Staff College lasts for about a month and a half and is also theoretical in nature. After they return from staff college employees are given placements in different branches of NBP. Their practical and on the job training starts right after their initial placement. Employees are sent to the different branches for on job training. During this training the manager of the respective branch is directed by the management to rotate the new management trainees in the different departments. This initial post is commonly referred as management trainee. On the job training lasts for about 12 months. During this one-year training program on the job, employees are rotated in different departments of the particular bank branch to get the basic knowledge and idea about operations in each department. Once this training is completed, they are appraised after one year and based on their performance they are chosen as permanent employees of NBP. This post is called OG2. This is the first post the management trainees get right after their training. JOB EXPERIENCE: Transfers: After the completion of three years at a branch, employee is transferred to other branches. The transfer process repeats after every 3 years. The purpose is to expose him to the various banking operations at various branches of NBP. Externships: Employees at NBP are also sent to different organizations availing NBPs services. For example FIA. The duration for various employees sent to other organizations differs. Mostly the duration last for 2 years, upon finishing they return back to NBP. NBP doesnt allocate newly hired employees any mentors to guide them. Employees can, however, contact their manager for any problem faced at work. Team Building: NBP is changing its culture and focus is more on team building. Recently a foreign expert from banking visited Pakistan and NBP employees were sent with him to the Northern Area of Pakistan. It was not an official visit to Northern Areas infact its purpose was to develop relationship between employees to work in teams.

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Talent Pool: All potential employees at NBP are given a chance for promotion. Every year a test is conducted which potential employees have to clear in order to get promoted to a higher level. To appear in the test, certain pre-requisites have to be met. For example, only those employees having MBA degrees or MSC in Economics can appear for the test. The exam is very competitive. Out of 1500 employees appearing for test, only 163 are selected and promoted. The number of people appearing for the test is called Talent Pool. There are 2 categories of Talent Pool: NBP Talent Pool- General: Successful candidates of this category are posted in any key area of Banks operation. NBP Talent Pool- IT: Successful candidates of this category are posted in I.T related operations. All successful candidates are entitled 10% increase in their basic salary.

There are 2 types of tests taken different level of employees: For employees at Grade1 till Employees at Grade 3.All candidates between and at same grades are required to take same test. For promotions at higher level of hierarchy, candidates are given a different test. This test is made for AVPs and VPs. Upon clearing the tests, employees are promoted to higher level in the hierarchy. The process of succession planning and internal promotion is a great source of motivation for employees.

CRITIQUE
The intranet can also be used for updating any HR news at the site SPECIALLY letting the employees know about the upcoming training program, its timings, duration and nature of the program so that right individual for the right training at a right point in time can be inducted which apparently has not been observed there in NBP

Compensation and Benefits:

The trainees are given an attractive package. Their basic salary starts from 27000. They avail other benefits such as interest free loans; employees are also sent abroad for training conducted in foreign countries. There are a lot of chances for internal promotions, which motivates employees into working hard to progress and achieve advancements. For example, the OG2 officers have greater chances of getting promotion after 3 years and becoming the branch managers; that is OG1. This culture of promoting employees internally motivates and encourages NBPs current employees to work hard and achieve their targets. This is part of their internal promotion program, where the potential candidates go through the tests for promotion. They are commonly referred as the Talent Pool.

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The employees pay package is revised every 2 years. The raise is about 10% to 15%, depending on the inflation prevailing in the country. There is also an increase in the benefits provided to them.

MOTIVATIONAL TECHNIQUES
Human motives are based on needs consciously or sub-consciously filled in individualistic hierarchical order. Generally motivation includes the entire class of drives, desires, needs and wishes, all of which are different for different individuals and further differ in their importance at various times for the same individual. Managing employee motivation is always an extremely complex task. To continuously enhance the level of performance of employees and attain the optimum level for ensuring growth of the organization, it is the primary responsibility of all HR practitioners to continuously maintain employee satisfaction and high motivation levels. The NBP utilized all HRM tools for enhancing employees motivation thereby contributing to banks record growth. Some of the steps NBP has taken to improve the motivational level of its employees so that they can contribute best to the organization, are: With increase in Banks profitability, NBP shared this gain with employees through raising their salary by almost 200% since 2002 and it is again going to be reviewed effective 2010. For employee motivation, 99% of employees were promoted to higher grades. Almost every employee has received either one or two promotions and in some places three promotions. This step was taken to satisfy the genuine aspirations of the employees which is unparalleled its uniqueness, unseen in the banking and other industries in the country. Education, health, loan facilities, highest in the industry by: Introduction of various new benefits and extension of existing benefits to the employees in the areas of medical and other allowances. Record increase in House Building and Car Loans in last two years.

For Top Performers, Performance Bonuses to create high performance culture in the Bank. To secure future of the Bank, hired 1000 MBAs on merit (300 being females 30%). Initiated Talent Hunt Program which enabled talented employees (about 500) within the Bank to take up key positions and provided great encouragement by opening new avenues for the existing employees based on merit for key internal and overseas postings Improved Employee Communication through NBP Newsline, Management Brief, Presidents Dialogue Sessions, Employee Communication Program etc. Employment to the children of the retired and deceased employees. Regular increase in the pension of retired employees to give them a feeling that NBP care for them even after their separation.

Promotions & Career Progression:

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For employee motivation, 99% of employees were promoted to higher grades in the recent past. Almost every employee has received either one or two promotions and in some places three promotions. This step was taken to satisfy the genuine aspirations of the employees which is unparalleled due to its uniqueness, unseen in the banking and other industries in the country. Promotion of employees who perform well are made strictly on the basis of merit and in the most transparent manner. Such promotions have been made a regular feature so that high performing employees are rewarded and their efforts in the growth of the bank are recognized. Employee Compensation: Pay Packages 2004, 2006 and 2008 were negotiated and implemented to the complete satisfaction of the employees and in the best interest of the Bank. This was a major accomplishment in view of the highly charged intra-union and inter-union rivalries compounded by the transition of HR responsibilities. Liberal payouts of Profit Bonuses were adopted to provide a sense of participation amongst the employees in achieving high profits. Besides the favorable packages, staff loans benefits have been improved through enhanced financing limits and reduction in mark-up. Pensionary Benefits were enhanced to retired employees or their widows to emphasize banks tradition of employee care. To ensure compensation levels of bank employees in relations to the market, salary surveys have been conducted and salary adjustments are being made wherever required. Banks internal customers: In order to provide maximum satisfaction to internal customers, which is vital for motivation and innovation, each employee of HR has been given specific responsibility with agreed upon standard time for each activity. The performance of the individual HR employee is then continuously monitored for the actual time taken for each activity against the standard set, to measure the HR performance. This quantification and measurement of each HR activity has resulted in substantial improvement in internal efficiency thereby contributing to employee satisfaction and motivation.

Achievement & Spot Awards: A merit based culture has been established in the Bank through implementation of achievement and spot awards for individual employees showing exemplary performance during the year or in an assigned task. The achievement award policy of the Bank is a transparent system for rewarding high performing employees through achievement awards to 10% of the total employee strength every year. The policy of spot award is basically for recognizing individual employees for their one-off excellent performance. Performance Appraisal System & Pay-for-Performance: Performance Appraisal System has been revised to replace the traditional subjective ACR to provide more objectivity in evaluation and recognizing merit. This system has been implemented with effect from January 2007 for all executives and contractual employees. Based on the evaluation of individual employees as per their performance appraisal a system of pay for performance is being implemented to properly compensate relatively high performing employees thereby strengthening the merit based culture. Employee Communication: Communication channels within an organization play a very important role in involving the employees to participate in the implementation of policies. Through involvement in the implementation process, employees feel motivated to perform and establish their contribution in the

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overall growth of the organization. With a view to establish top-down and bottom-up communication, Dialogue Sessions with field functionaries of high value branches with the President have been held and constructive suggestions incorporated. Further to make the employee communication more effective regular publication of NBP NEWSLINE on quarterly basis and MANAGEMENT BRIEF on monthly has been introduced. Leadership Development: After reorganization of the banks field structure and decentralization of powers, Regional Management Teams (RMT) were formed at all 29 Regional Offices. These leadership positions were filled through a systematic selection of RMT Members on merit in a most transparent manner and after qualifying a rigorous selection process involving written test, group discussion and interviews. The empowerment of Regional Management Teams and Managers of branches through enhanced discretionary powers for prompt decision making and assumption of higher responsibilities has motivated them to ensure high performance levels. Further the Bank intends to launch a NBP Management & Leadership Development Scheme for internally skilled and qualified employees of the bank for placement in middle and higher management level positions in future. Industrial Harmony The implementation of all HR policies depends to a great extent on continuously maintaining industrial harmony within the organization. This has to be ensured through developing a mutual respect between the management and employee representatives. Mutual respect between Management and the CBAs as well as Officers representatives at NBP has been strengthened through trust building measures. These trust building measures included maintaining a continuous dialogue process with CBAs and Officers representatives. Industrial Relations Conferences were held to build better understanding of IROs and Management Policies to ensure continuing harmonious environment. In future Industrial Relations Conferences are also under review. Additionally Employee Communication Program involving meetings at Regional Offices for Staff are planned to create better awareness of management policies and banks tradition of employee care.

Performance information Source: The immediate boss (The Manager) writes this report every year when performance appraisals are due. The manager is chosen because he has all the information about the nature of the job and the employee performing the job. The manager does not consult his peers or the employees for information on employees performance. This report is submitted on 31st Dec every year. The written documentation is forwarded to senior managers for promotions and pay-raise. Based on these documentations, managers decide their employees professional fate. This system however has greater chances of biasness and favoritism and for this reason NBP is planning to introduce the Bell Curve Method for employees evaluation. The employees have their own intranet, which is only used to emailing purpose. The intranet however lacks other information which employees should have access to. Conflicts and its Resolutions: Conflicts lead to a non-conducive and unfriendly environment. They should be avoided at all levels, and if they do take place, there should be a quick remedy for it.

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At NBP, there are no formal committees or teams made to resolve such issues. Conflicts do take place, but these issues are not dealt with a formal procedure. When there is a conflict between managers or a manager and his subordinate, the parties to the conflict try to resolve the issue at their own level, without involving higher authorities. If the issue isnt resolved at this level, branch manager is involved. If the branch manager is also unable to solve their issue, then the problem is taken to the head office, which tries to resolve the issue. In most of the cases, one of the employee is transferred to other branch to minimize the contact with his previous manager. Warnings and Termination: In case there is any disciplinary issue, first an informal and then a formal warning is given to the employee e.g. if there is a case of late comer, a red cross is made against the name of that employee on the attendance register. Two such warnings are given to the employee. At the third time, an official warning is sent to the regional officer and the employee. A memo is sent to the employee asking for an explanation. Progressive Discipline Program: Employees of National Bank of Pakistan are expected to take a positive, responsible approach to maintaining high standards of conduct and work performance. It is generally recognized that special trust is placed by the general public in a financial institution; therefore the employees must observe their duty in the correct manner. Failing to do will, however, result in some kind of disciplinary action taken against the employee. Following is a list of serious offenses requiring disciplinary action up to and including dismissal: Insubordination. Unexcused absences. Disregard for or violation of bank policies and/or procedures. Lewd or discourteous behavior or any other conduct which injures the public reputation of the bank. Adverse attitude toward the bank, customers, fellow employees, or bank policies. Refusal to obey a legitimate direct order from a supervisor. Intentional falsifying of records. Conviction of a crime. Accepting of bribes, "kickbacks'', or otherwise improperly using one's bank position for personal gain. Disclosure of confidential information. Willful violation of bank policies and/or procedures. Deliberate misuse or mishandling of moneys, securities, records, files, or documents of the bank. Intoxicated on the job. Use of drugs or "high" on drugs while on the job. Using these criteria, management can take action against the employee if he has been involved in any of the above. The process of progressive discipline program starts with an oral warning. For example when the employee comes late to work, he is given an oral warning. Upon repeating the same behaviors, the manager puts a red line under his name in the office maintained register. If the employee continues to be late for work, the manager adds another red line to his name. After 3 red lines have been added to his name, he is issued a written warning. A copy of the written warning is sent to head office also. If the employee continues to be late for work, he is issued a memorandum. Again the copy of memorandum is also sent to head office. And an inquiry is initiated to find out what problems do the employee has due to which he cant observe the rules set by the organization.

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Leaves:
Privilege Leave (PL) 30 days per annum: Thirty (30) days Privilege Leave per annum is allowed to Executives / Officers and PL to be availed within a year on becoming due. The maximum relaxation of 90 days is allowed to avail the leave in the following years. Casual Leave (CL) 20 days per annum: Twenty (20) days Casual Leave is allowed to Executives/ Officers per annum and un-availed Casual Leave up to a maximum of 15 days is allowed to be encashed, to OG-I, II & III at the end of the year. Sick Leave (SL) 18 days per annum. Eighteen (18) days sick leave is allowed to Executives/ Officers and Un-availed Sick Leave accumulates and becomes part of the Leave balance. Special Leave (for Female employees): On the death of her husband, a female employee may be granted Special Leave on full pay, when applied for a period not exceeding 130 days. Such leave shall not be debited to her Leave account. The Leave shall commence from the date of death of husband of the employee and for this purpose, along with her application for special leave, or if that is not possible, the said certificate may be furnished to the leave sanctioning authority separately. Maternity Leave: A Female employee may be granted maternity leave on full pay, outside the leave account, to the extent of ninety days in all from the date of its commencement, or forty-five days from the date of confinement, whichever is earlier Maternity leave may not be granted for more than three times in the entire service of a Female employee. For confinements beyond the third one, the Female employee would have to take leave from her normal leave account. EVALUATION As the role of HR is changing in the organizations, NBP top management has also introduced major changes in the HR department. The analysis of the HR practices at NBP is given below: HR role in the strategy formulation: NBP HR department has been working for many years but it was only involved in the routine administrative tasks. The top management never considered taking opinions from the HR department. Ever since the changes have been introduced, the HR department has gained significant importance. The meetings held at head office has directors representing every department,(including HR). Since the company has recently introduced many different products, the HR department suggested that new employees need to be hired and the current employees need product training and also training for new systems introduced in the company, for example SWIFT system (Society for Worldwide Inter bank Financial Telecommunication) that facilitates speedy services in the area of home remittances.

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The system has built-in features of computerized test keys, which eliminates the manual application of tests that often cause delay in the payment of home remittances. The HR director emphasized that employees need training to run the system, thus the training sessions were introduced for employees to enhance their computer skills. As mentioned in the findings, the company needs more employees to meet the requirement of the 2010 plan. Again the HR departments input was being considered. These evidences show that the director HR departments opinion is now being considered and valued. This signifies that the company has an integrative linkage between the top management and HR department. Labor Forecasting: There is no such mechanism used by NBP for the forecasting of the labor surplus or the shortages. NBP hire new employees according to their future strategy. Their current strategy is to increase its branches worldwide and to increase its product line. Thus they have expansion as target. NBP hire every year new employees, and would hire till 2010 according to the target. If labor surplus occurs in the NBP, as in the mid nineties NBP was given directive by IMF to reduce its employee. NBP offered early retirement program to its employee. NBP employees were offered golden handshake offer. This offer was not forced to certain employee; it was an option for employee to avail. The employees feel job security at NBP, as no one was terminated by force. NBP also hire temporary employees on the contract bases. These employees are known as contractual employees. These employees get the same benefits as the permanent employees. NBP reduced its total number of branches in 2002; this was done because the management realized that there were some excessive staff in the bank. The total number of employees were also reduced due to the closing of some branches. In 2003, 2004 the bank increased the number of branches and new employees were also hired. This was a wrong forecasting done by the HR management because later they re-started the branches that they had closed. Evaluation of Training Programs: The training methods are evaluated on cognitive outcomes.. Thus NBP check that whether employees have retained what they learned during training and employees are also given forms to evaluate training forms. The form used to evaluate the training program is quite comprehensive. It properly evaluates the training program, the extent to which the subject taught has been covered, the methods used to provide training, general administrative arrangements, its content, and its execution. The course evaluation form is very general. It only mentions subject studies, course duration and the instructor's name. This form doesn't help evaluate the course taught properly. It doesn't ask for any comment on the courses offered; for example whether or not the courses taught were relevant to their job. These forms evaluate are used to take feedback of the employees as whether training program as of worth for them or not. But there is no such formal method used by NBP to evaluate the performance of the employee after training. Development of Employees at NBP: NBP focuses on development activities of the employee. NBP uses different techniques for the development of employees. The basic technique used is through job experience. The employees are rotated, and transferred to different departments and regions of the NBP in order to develop them for

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future. NBP also send its employees on for temporary assignments to other organizations. Thus NBP uses externship as development, as in the case of FIA mentioned in the findings. Succession Planning: The practice of succession planning at NBP is not done in that sense as it should.Although the talent pool at the NBP is part of succession planning but keeping in view the pros and cons of the succession planning ,this gets jeopardized at NBP. The development program such as talent pool is very effective for the NBP. The employee at NBP are very much motivated by the introduction of this plan, as each and every employee gets an opportunity to get promoted if qualified. The organization (NBP) is benefiting by the program as it helps NBP to identify talented employees within the organizations. But some of the employees think that the selection for the talent pool is not completely done on merit basis. This is a drawback for the NBP, as it might hinder to spot the right talent. NBP doesnt allocate mentors to the newly hired employees. Employees refer to their manager for problems they face on the job. Performance Evaluation at NBP: The evaluation of the employees is done on the attribute approach. NBP has its own annual confidential report (ACR). This report resemble with graphic rating scale. The employee is rated on the different traits. For performance evaluation, the source of information is solely managers. The manager in the end of the year has to Annual Confidential Report. This has a greater potential for biasness since managers can favor or penalize an individual unduly. (There is no other authority that keeps a check on manager, again manager has all the liberty to write what ever he pleases for the employees he is evaluating.) Some of the employee refer ACR as ATR (Annual Torture report), this shows that employee do not trust evaluation method. They think that it depend solely on the respective manger who write ACR rather then on performance. Thus reliability and validity of this report is very low. The congruence between the report an the strategy is also low.

Compensation and Benefits: NBP management pay a decent pay scale for the OG3 (new employees, i.e. Rs.27,000). The organization has internal promotion programs. There are very few hires from outside the organization. The employees are promoted after 2-3 years based on the performance. Thus employees are satisfied that there are ample chances of promotion at NBP. The compensation process of the NBP is based on the performance. NBP give benefits in the form of cash to the best employee of the years. NBP also share profit among the employee on a yearly basis. By doing this, the management wants the employees to consider themselves to be a part of the team. Every year a specific amount of profit is shared among all the employees. This profit at maximum consists of 1 basic salary. Employees are also motivated by benefits, if an employees increase his/her skill (higher education.).Thus NBP has very good system of benefits for the employees. Pay System: The basic salary of each employee is increased every year. This increase ranges from10- 20%.As far as the salary package is concerned; it is revised after every 2 or 3 years. NBP has a policy that if the clerical level staff gets an MBA degree or a special banking exam, they get a specific increase in their pay and are given monetary assistance too. At the managerial level this practice is not being followed. It is important

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that the people at higher level should also be given some monetary assistance or increase in pay after they attend a training course. Termination Process at NBP: The termination of the employee at the NBP is done through progressive discipline program. The employee is given unofficial warning for the first offence as mentioned in the findings part. If employee repeats the offence then he/she is given official warning. Second official warning is given on the third offence and the copy is sent to the head office as well. If the employee does not change behavior after these official warnings then the inquiry is initiated. Employee is given chance to appear and explain his/her point of view. If NBP takes decision to terminate an employee, though it is a rare case, that employee has right to appeal against decision. The employees of the NBP think that it is not easy for the management to terminate an employee for two reasons. Firstly it is a lengthy process. Secondly employee has full right to challenge the decision. This has both positive and negative aspects. It is positive in a sense that employee feel job security. But it is negative as termination is not that easy, an employee might not change his/her behavior as required by the organization. Intranet: The intranet used at NBP is only for email purpose. The company has not fully developed an EHRIS (Electronic Human Resource Information System) This system helps to keep employees updated about their personal profile and the current activities at the company as a whole. The inefficient system of snail mail still prevails at the company to inform employees of the various occasions and activities being held in the company. NBP is planning to launch an EHRIS system, it would be better that this system is launched as soon as possible. Conflict Resolution at NBP: NBPs management uses open policy for the conflict resolution, as if a conflict arises between two employees, their immediate boss or another peer try to resolve conflict among those employees. But there are no teams or any formal conflict resolution techniques used for this purpose. The conflict some times prolong for quite some time, which leads to loss of productivity till the time conflict has been resolved.

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CASE ANALYSIS After having analyzed the HRM practices at NBP in detail, I would like to compare the same with international best model World Bank. NBP as we all know is the only public sector bank. International Best practices are in Private Banks, public sector do not think HR is important for them. They do not believe in empowering people, there is no pay for performance, annual increments are given but having seen the progress NBP over last decade,we can compare its HR to any financial sector organization around the globe and that is the reason I have chosen WB for the purpose. As we know that in NBP the sources of profit are not aggressive banking operations but the high growth rate in GDP from 2002 to 2007 and the subsequent increase in revenue are the major source of profit. It cannot be compared with MCB or HBL. After privatization these banks have been transformed as efficient organizations. Although comparing ,a public sector banks HR practices of a developing country like Pakistan to that of the worlds most modern financial development organization (WB) with its international best practices will be an imbalance but we just will see the HRM perspective and try to draw some lessons out of it.

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SECTION II HR PRACTICES AT WORLD BANK

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INTRODUCTION TO WORLD BANK

The World Bank is a vital source of financial and technical assistance to developing countries around the world. The World Bank is made up of two unique development institutions owned by 184 member countriesthe International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role in the banks mission of global poverty reduction and the improvement of living standards. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together they provide low-interest loans, interest-free credit and grants to developing countries for education, health, infrastructure, communications and many other purposes. The Bank is always actively involved in financial sector restructuring and regulatory work, continuing to help nations move towards market-based economies through financial sector restructuring, infrastructure development, privatization and regulation. WBs Mission Statement: To fight poverty with passion and professionalism for lasting results. To help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors. To be an excellent institution able to attract, excite, and nurture diverse and committed staff with exceptional skills who know how to listen and learn.

HR AT WORLD BANK
Around 10,000 development professionals from nearly every country in the world work at the World Bank in Washington, DC. The bank has 109 Country Offices. They are economists, educators, environmental scientists, financial analysts, anthropologists, engineers and many others. Approximately 3,000 of the employees work in country offices in the developing world. They apply their skills and the bank's resources to bridge the economic divide between poor and rich countries, to turn rich country resources into poor country growth and to achieve sustainable poverty reduction.

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Nearly 9,000 staff members perform the work of the IBRD and IDA, both at headquarters in Washington, DC, and in over 100 country offices. The World Bank is the third largest employer in Washington, DC. The World Bank organizes its operations primarily through 27 Vice-Presidential Units. Six regional vicepresidencies control a large-degree of decision making on Bank operations within their own regions: Africa, East Asia & Pacific, Europe & Central Asia, Latin America & the Caribbean, Middle East & North Africa, and South Asia. Other vice presidencies include 7 "Network Vice Presidential Units"responsible for certain cross-cutting issue areas such environment, financial sector, or private sector development-and 13 others-covering such areas as external affairs, development economics, legal, and human resources. The President of the World Bank is simultaneously the head of all five arms of the World Bank Group. Recruitment : Recruitment at World Bank is done through a centrally managed process to ensure that the Bank Group maintains consistent institutional entry standards and stability in the overall staffing levels. The World Bank Group hires both internationally and locally.

Local Recruitment:
Local hires do not require global mobility and international experience; the country offices undertake these appointments. Positions at Grade GA-GE or equivalent are subject to local recruitment. In these positions, global mobility and international expertise is not required. In circumstances where required skills cannot be obtained by local recruitment, or global mobility and international experience are essential, international recruitment may be authorized by the Senior manager with the consultancy of the manager, Human Resource team or the IFC manager. Local recruitment in the country offices ensures depth of country knowledge practice and is the critical complement to international recruitment. International recruitment: Global mobility and international experience are essential for International hires; these appointments are for positions in World Bank Group headquarters in Washington, DC. Postions at grades GF or equivalent and above are subject to international recruitment. These are positions where global mobility and international experience are essential. In circumstances where positions do not require global mobility and international experience, the Senior Manager may authorize local recruitment with the concurrence of the Manager, Human Resource Team and the IFC manager, Recruitment. Recruitment Process - Recruitment Clusters: The vacancies for which the managers consider external candidates are advertised in clusters three times a year; May, September and January. Staff Planning: Unit managers identify Washington-appointed vacancies for which they consider external candidates. Internal candidates are individuals on regular, open-ended or term HQ or CO appointments Individuals on extended-term and short-term appointment are external candidates.

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Other external candidates include agency temps, contractors and those who have no current employment relationship with the World Bank Group. The Vice president confirms that these vacancies to be opened for external recruitment have been reviewed, costed and approved as part of the VPUs overall staffing plan.

Job Descriptions Job profiles are used to prepare and review job descriptions for each vacancy. External recruitment is conducted by first identifying sector-wide skill and diversity needs and then identifying targeted candidates to meet these needs. HR teams review the job descriptions for consistency with the ACS job Profiles and prepare the job announcement in draft in myJobWorld. The HR committee also reviews job descriptions for Level GC Executive Assistant, Level GC Office Administrator and all Level GD positions. For technical specialists, the recruitment recognizes the banks need for candidates with integrative skills focus on results the ability to work effectively in multi-sector teams and with partner agencies and country counterparts and an adverse background aligned with the banks diversity objectives. Job Posting: Job announcements are posted in MyJobWorld on the Banks intranet on the Banks external website (www.Worldbank.org). Candidates on regular, open-ended, term, extended-term and short-term appointments apply through myJobWorld whereas other external candidates apply through the external web job posting. Longlisting: The Talent Search and Partnership Program (HRSTS) is responsible for reviewing and assessing external candidates including applicants currently on extended-term and short-term appointments. The HRSTS then prepares initial longlists of the most external qualified candidates and arrange for testing of these candidates through the vendor contracted by the bank to administer these ACS tests. Candidates who pass the tests constitute the final longlists. HRSTS also identifies and arranges for testing of internal candidates who have not previously passed the required ACS tests, including staff from other job streams, country offices, etc. Candidates must pass these tests in order to be considered for shortlisitng. All internal candidates are automatically longlisted unless they are required to take and do not pass the ACS tests. The final longlists are submitted to special shortlisitng panels established for this purpose. Shortlisting: Special panels are responsible for preparing shortlists of candidates from which hiring managers make their selections. Cluster of vacancies are sub-divided into groupings of similar jobs. A panel is then constituted for each of these groupings to review and prepare the shortlists for the jobs in that grouping. Each sub-panel comprises of: One representative from each of the hiring units of the jobs in the groupings designated by the hiring manager 2 ACS Network representatives selected by the ACS Network 2 HR representatives. The secretary of the ACS HR Committee is available to the sub-panels for consultation and guidance. He also refers policy matters to the Committee itself.

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Interviews and Selection: Hiring units are responsible for interviewing all shortlisted candidates and making their final selection with the supoort of HR teams. HRS keeps a track of progress of short-listed candidates, particularly those who are shortlisted for more than one vacancy and coordinate offers if a candidate is offered more than one position. Ex-Post Review At the conclusion of the selection process, HRS conducts a review of the selection process and outcomes to determine together with the HR committee: Any process improvements to be made for the following cluster recruitment: Whether the pool of candidates short listed but not selected for cluster vacancies should be: Automatically considered for vacancies in the following cluster and/or: Should be considered for vacancies posted within clusters. STAFF EXCHANGE PROGRAMS The World Bank Group's Staff Exchange Program (SEP) is essentially a sharing of staff between the Bank and a partner institution, with particular focus on the private sector. The Staff Exchange Program (SEP) was launched in 1995 as a way to leverage the skills of World Bank staff and foster cultural exchanges with their partners in the development field. The concept of exchanging staff with partners in the private sector and elsewhere was seen as a way of sharing knowledge and building new perspectives to help spur development for the worlds impoverished. Japan through Nippon Keidanren was the first to partner with the Bank through SEP. Since then, the Bank has collaborated with more than 200 organizations. These partnerships have included other international financial institutions and development banks, government agencies, universities and research institutes, private sector companies and consulting firms, and unions, NGOs and advocacy groups. SEP seeks to achieve several key objectives. These include: Increase the Bank's and its clients' capacity to foster development Strengthen relationships among the Bank's partners in development Enhance skills and knowledge of program participants Foster cultural diversity and awareness for the Bank and its development partners

Career Development - Rotational Assignments: Most Young Professionals take up two rotational assignments in different units in the World Bank, where they gain valuable on-the-job experience. They are usually a member of a team, where they are expected to make significant contributions towards the unit's work program while they gain a broad overview of the World Bank's policies and work. Young Professionals have the opportunity to strategically select their rotational assignments so that they can maximize their learning and exposure. International Travel: Young Professionals generally participate in two to three trips to developing countries during each assignment, which is an important aspect of our work. These trips present opportunities to experience first hand the challenges of development and also familiarize Young Professionals with the World Bank's clients. Some Young Professionals take up rotational assignments in one of our country offices based in a developing country.

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Mentoring, Coaching & Support: Peer Mentors: Young Professionals are assigned a peer mentor from the previous year's group, based on their professional interests and cultural background. Peer mentors can be valuable in helping new recruits better understand the expectations and challenges of the Program.

Senior Mentors: Young Professionals have the opportunity to build a lasting professional relationship with an experienced senior staff member in the World Bank, through the Senior Mentoring Program. These relationships are particularly useful for receiving career guidance. Young Professionals are also paired with a senior mentor in the department they are assigned for their rotational assignment. Language Courses: When the employees are sent to different countries or locations, they are also given the opportunity to attend language courses. In these cases, the entire family of the staff member is applicable to attend the language course. Reassignments: Staff members also apply to a position at his/her current grade level via MyJobWorld (Job posting system on the intranet). The candidates go through the usual short listing, clearance and interview phase after which the selection decision is recorded in MyJobWorld. After the receiving and releasing managers agree on the release date, HRE processes the Reassignment transaction. For developmental purposes, the bank offers the staff to work with some other project or join some other assignment. For staff who are ready for a new assignment, it is recommended that during OPE (overall performance evaluation) discussion, managers be informed of the career plans. Strategic Reassignment Process During the strategic planning discussions, the President, the Managing Director and Vice Presidents review with the HRS, managerial positions expected to become vacant over the subsequent 12-18 months. If there are many candidates eligible to fill these anticipated vacancies, it may be decided that the best course of action is to advertise them For other positions, a reassignment might best fulfill business needs and further the career development plan of the appointee. In some instances, the President and Managing Director may reserve the right to make direct appointments. Generally, they do so in consultation with the respective VP. Assessing the Candidate Pool: To assist in determining the potential candidate pool and assessing the trade-offs of either filling the position via advertisements or strategic reassignment, Executive Resources encourages the President, MD and VP to assess such factors as: Diversity Timing

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Availability Candidates interested The kinds of profiles that would complement the current management team

Reassignment and Retraining: Following the effective date of the notice of redundancy and termination, the Bank Group assists redundant staff in seeking another position within the organization by providing access to the Job Search Center and the Job World. Redundant staff is matched with the existing vacancies in the Job World for consideration along with other applicants. This will include positions, the duties of which are commensurate with the staff members qualification, or for which the staff member can be retrained in a reasonable period of time. Placement also may be offered in a vacant lower level job position. Redundant staff may also receive retraining, which may include on-the-job training, for an existing or known perspective vacancy where the manager agrees to accept the assignment of the staff member after a reasonable period of training. The cost of such training may not exceed three months of the staff members net salary and such training begins 30 days prior to the staff members termination date.

CORE ISSUES AT WB
Creating a Supportive Workplace for Staff with Disabilities: The World Bank is committed to attracting and retaining top-notch professionals worldwide. When best candidates are persons with disabilities, the HR team is ready to go the extra mile to enable person to become a fully-productive member of the workforce. Work is underway to establish policies, processes and programs that create an accessible and supportive workplace worldwide. support staff with disabilities, the Bank Group: Provides accommodations which are reasonable, to enable applicants to participate fully in interview process and staff to perform their work effectively Removes barriers to access in our Washington headquarters and Country Offices Improves accessibility to information technology Raises awareness amongst staff to dispel myths and remove invisible barriers the the the To the

Transparency of HR records for the employees: Staff in general has access to the information in their files per the World Bank Groups information policy. Starting in about 1996, the Bank Group ended the use of paper-based files and began to scan all documentation into an image-based HR records system. Staff can pursue their own imaged records through HRKiosk. Additionally, the HRKiosk can provide staff with an annual Salary Review Increase history and a career Job Action summary. Workplace Safety: The director, health Services Department, establishes such programs for monitoring and assuring the safety of the Bank Group workplace and staff as are consistent with established occupational health practice. These programs include but do not be limited to: Monitoring Bank Group facilities and working conditions for hazards to staff in the areas of safety, ergonomics and epidemiology, with recommendations for preventive or corrective actions as needed; Fitness for duty assessments as

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warranted for those staff exposed to hazardous substances or working conditions, or whose duties affect the safety of others. The country office Director/ manager, if possible, consults with the Director, Health Services Department, in situations relating to public health emergencies or environmental issues, to determine appropriate steps to protect the health and safety of the staff. Flexible Work Arrangements: Flexible work arrangements (FWAs) are tools to assist managers and staff balance work and life issues. The keys to successful FWAs are partnerships among managers, staff and colleagues. Alternative Work Schedule (AWS): Work 80 hours in 9 days, having every 10th day off, workload permitting Flextime: Modify work start and times without reducing number of hours worked per day (8 hours plus lunch) Phased Retirement: Transition from full-time work to retirement by working reduced hours. Benefits in this case are also prorated Reduced Work Schedule: Work less than full-time (100%). Benefits in this case are also prorated. Only open-ended and term staff (including unconfirmed staff) are eligible to work this arrangement with managers approval. In the current situation of heightened security concerns, managers have the discretion to allow staff in other work categories to utilize flexible work arrangements on a temporary basis when appropriate. Due to the diverse nature of the Bank Group work, not all staff positions are suitable to this arrangement. Telecommuting: Work some or all workdays away from principal office (benefits impacted). Salary in some of the above cases is prorated according to agreed upon hours of work. For operational travel and training, staff receive either full- time pay or, if approved, comp time for hours worked beyond the reduced work schedule. Hours of Work And Overtime: The regular work schedule is 40 hours per week unless an alternative work schedule has been established. Overtime is hours in excess of the staff members regular workweek established and is compensated at time and a half for grades GD and below. The methodology for establishing local salaries takes into account the length of the workweek. Typically staff members holding Regular, Local staff Regular, Open Ended, Term , Short term temporary and Extended Term Temporary appointments are eligible for overtime. When a staff member whose current position does not qualify for overtime payments is assigned to a lower level positions which qualifies for overtime payments, he/she is not eligible for overtime payments as long as his net salary remains above the maximum of the salary range of the lower level position. Options for staff ineligible for overtime pay: Recuperative/Compensatory Leave :

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is allowed for staff ineligible for overtime pay, for the purposes of rest and recuperation following return from exhaustive mission travel or a period of intensive and prolonged overtime. Administrative Leave : Leave may also be granted for services of essential staff or staff required to work on official holidays. The overtime work has to be authorized in advance by a manager either in writing or verbally. Payment for authorized overtime of more than one half-hour is made at the rate of 1.5 times and hourly rate based on the staff members net salary. Reimbursement of taxi fares from the place of work to home for eligible staff who perform overtime is also authorized. For this purpose, the staff has to fill in a Miscellaneous Expense Reimbursement Request (MERR).

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CHALLENGES FACED BY HR IN WORLD BANK Since 2004, the HR function is in a transition to align itself better with the strategic direction of the entire organization. The role of HR at the World Bank is being re-thinked and reshaped. Since 2001, the bank has used video conferences, "town hall"-style meetings and one-on-one interviews to get staff feedback on key HR issues identified by employees. These include strengthening strategic staffing, providing more support to the global staff, promoting and recognizing both managerial and staff excellence and mobilizing diversity. While the World Bank may be the most diverse organization on the planet, its employees want improved succession planning for ethnic minorities and more opportunities for women. The bank is also working to ensure that the executive level reflects the makeup of the organization. Core Values: The World Bank's staff members number 10,500 and come from all 184 member nations. More than 7,500 work at the bank's headquarters in Washington, while nearly 3,000 work in field offices spread across the globe. While the diverse nature of the bank is one of its strongest assets, it also presents the organization with its biggest HR management challenges. While dealing with such a wide scope of cultural differences and backgrounds, there can be quite a few misunderstandings and conflicts. It requires a lot of understanding, sensitivity, and respect for other cultures and personal backgrounds. In short, it takes a good diplomat.

ANALYSIS
Role of HRM in Strategy formulation: After analyzing the HR practices of World Bank we have found out that there is an integrative linkage between the HR function and the Strategic planning team. This means there is a continuous and nonsequential interaction between the two entities. The HR executive gives information to strategy planners, based on the information they choose the best strategy and then the role of HRM changes to that of implementing the strategy. Since 2001, the bank has used video conferences, "town hall"-style meetings and one-on-one interviews to get staff feedback on key HR issues identified by employees. These include strengthening strategic staffing, providing more support to the global staff, promoting and recognizing both managerial and staff excellence and mobilizing diversity. The fact that World Banks HR is one of its competitive advantages says it all. Strategy Type - Differentiation Strategy World Banks HR practices are in line with its Corporate strategy. They recruit internally as well as externally depending on different posts. They have a very diverse workforce including people from wide range of countries. They provide broader career paths to their employees. They heavily invest on their employees in terms of training and development. Their compensation system is quite thorough and is externally compatible with other banks. Organizational Structure: As World Bank has its operations world over it is very difficult to keep it completely centralized. Thus it has a decentralized Structure. The structure also goes with its differentiation strategy. It is a combination of Geographic (as its spread over 180 countries) and Product Team Structure. We say Product Team because there are different projects and each is independent of the other.

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Job Analysis: They are using detailed questionnaires covering all aspects to carry out Job analysis in order to have thorough knowledge about job descriptions which in turn helps them in recruiting the right people for the right job. Job Design: They are using Motivational approach in job design. They try to make the jobs of their employees more challenging in nature in order to motivate them. They are given autonomy in their tasks. Also the employees are given appropriate feedback which gives them a clear idea about their performance and areas of improvement, motivating them even more. This again is inline with their differentiation strategy, which requires higher employee motivation. In some cases we can also observe the use of Biological approach as in the case of special treatment for disabled people, continuous monitoring of working conditions for hazards to staff in terms of ergonomics, safety etc. Forecasting: As mentioned in the findings their Recruitment process starts with clarification of forecasting needs. They are using a combination of statistical tools as well as subjective judgments of people in order to forecast labor demands. This is in accordance with their ever changing needs of different projects. Every now and then they launch new projects with a different purpose and with varying needs that are not similar to the existing ones thus a combination of both approaches serves them best. Surplus of labor: In case when the employees are redundant, it is in the institutions best interest to retain staff for which it has invested. From the information gathered, we have also found out that prior to any proposal of ending employment via MAS (mutually Agreed Separation) or Redundancy, every effort is made to seek an assignment within the unit or some other unit outside. In such situations, the employees are retrained so that they can render their services in some other unit i.e. they are transferred to some other unit. If there is no vacancy available, the employment is terminated. In certain situations, if there is no vacancy in the same grade level, the employee may be assigned to some position lower than the previous grade level at which he was working. Therefore Demotions are also done at the Bank. In the findings we have seen that 2 or more staff members may also share responsibility for one position. Therefore they also follow a work sharing system. Shortage of labor: In case of shortage of labor, the staff is required to do overtime, for which they are given compensation and benefits. Moreover, the employees are also retrained to work in some other units. They are given additional assignments and in some cases, the employee is paid extra for the additional assignment, while in some cases he is not. The terms and conditions are well defined before the additional assignment is given to the employee. Turnover Rate: It is fairly high at the bank headquarters. Firstly, the type of work and how it is performed are changing rapidly due to technology. Every now and then there new practices and new technologies coming up that makes the existing employees obsolete. Secondly, as the nature of work is mostly based on projects employees work in the headquarters on temporary three- or four-year assignments.

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Recruitment Process: Both external and internal recruitment policies are used at World Bank. For relatively lower levels external recruitment policy is implemented in order to continue to have new, talented and creative staff. These people are usually selected form the local labor market. For higher levels mostly internal recruitment is followed. Usually an employee from one branch is promoted to a higher level in another branch. Although this concept does lead to a diverse work force and all the benefits associated with it but at the same time employees might not like a foreigner boss all the time As long as pay structures are concerned they are done keeping in mind the local labor market. Apart from this a lot of benefits and compensations as in the case of development assignments, external assignments, transfers etc. are also provided. They do not follow employment at will policies. They have a detail process known as Mutual Agreement Separation (MAS). Due process is followed before any staff member is terminated. This is appreciated by most of the employees as it gives them a sense of job security. Recruitment sources: World Bank is using e-recruiting as its major source of recruitment. For internal employees there is an Intranet website named myJobWorld whereas for external labor market they recruit through their official website. Although e-recruiting is one of the latest recruitment sources but it is restricted to internet users only. Especially in some developing countries like Pakistan just using e-recruiting may not hit the right target market. The panel of interviewers typically consists of at least 2 members from the concerned department and 2 members from the HR team. With multiple interviewers, the chance of errors is reduced to a great extent. Moreover, the criteria or the dimension on which the candidates will be evaluated are also defined before interviewing the applicants. This makes it more reliable (greater inter-rater reliability) Selection Methods: The World Bank conducts competency based interviews which carry certain advantages. Firstly, competencies are identified by careful analysis of position. This increases the validity of the interviewing process. Secondly, appropriate pools of questions are prepared which increase the specificity of the interviews. Thirdly, candidates are rated systematically which lowers the chances of biasness. This makes the process more reliable. Fourthly, the panel of interviewers increases the reliability of ratings. The interview panel consist people both from the HR and the line managers. If we look at the traditional interviews, their major drawbacks are: Validity is low Inconsistency in topics covered Interviewer attitude effects the interpretation of responses Influence of unfavorable stronger than favorable Rush to judgment Interviewer talks too much Biases too frequently enter decision process

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The current practice of holding competency-based interviews is extremely beneficial and efficient as it allows the HR team to recruit people on the basis of their relevancy with the job. On analyzing the questions in the list of interview question we found out that mostly, the questions asked in the interview are Experience- based in which the candidate is asked to relate situations from his experiences and how he handled them. The cognitive abilities of the candidate are also assessed during the interview session. He is evaluated on his speaking and listening skills. The candidates are also presented with case studies to come up with solutions and recommendations for the given situation. Hence the reasoning abilities of the candidates are also evaluated. Reference checks are done on all the employees hired by the Bank. The employees are required to provide 2 references (at least) and before hiring the candidate, the people who have been referred are called by the HR people. They are asked questions regarding the candidate and after verification and thorough reference check, the employee is hired. An advantage of these reference checks is that at times the candidates tend to hide their current employment when they apply somewhere else, so that their chance of being hired may not be lowered. However, it is possible that the people to whom the HR department refers are also not speaking the truth about the candidate, maybe because he is a relative or a friend, and will tend to hide any point that may cause the candidate to loose the job. Many employees go to the U.S. relying on the fact that they can stay. However, when their job ends or their term runs out, suddenly these people are in a state of shock because they must leave. The challenge they face is that many will use the bank's grievance processes to fight to stay. This can present the HR team with quite a moral dilemma, because they have someone using their job to protect their family and it is a very hard decision to make, because the impact on a family can be quite overwhelming. Training & Development World Bank is a learning organization and they believe in knowledge sharing. Their intranet site YourNet facilitates employees in sharing of information organization wide. Employees can add their experiences to it as well as read others. They have extensive training programs for both new employees (Young Professionals Orientation, Introduction to Finance, Individual Training Opportunities, Young Professional Discussions etc) as well as for existing employees such as External Training Program, Staff Exchange Program etc. They also evaluate the effectiveness of the training imparted by filling up an OPE Supplemental Evaluation Form indicating the value and impact of the training for both the employee as well as the work unit. As mentioned previously World Bank really does invest on its employees in terms of development. They are using four of the development techniques. Formal education in terms of language classes, etc. Their performance appraisals methods are high on specificity and they also use 360-Degree feedback system. International travel and Job rotation is being used as part of Job Experience. They also go for job enlargement in terms of reassignments to other jobs. Other than this mentors and coaches are also available to employees for support and development. Thus they have a comprehensive system for employee development. Performance Management:

WB believes that 360 degree performance feedback and that employees objectives must relate to the units objectives and clear guidelines about how to improve strategic Congruence as well as increases specificity of Performance Management.

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We could not get any information about how the performance management system works at the World Bank. The only information that we could get was that the bank has monthly review of their staff members. A feedback is also given to the employees who help them improve on their weaknesses. They also follow 360 feedback system. Staff members from all the level are involved in getting a feedback for the concerned employee. Performances are also evaluated on a yearly basis also. The bank is also using a multi-rater tool which ensures that the performance measured is more reliable. Pay structure: At the entry level, the employees are given skill based pay, which is totally based on their qualifications and past relevant experience along with the skills that they possess. Moreover, when the employees improve their skills through training and language courses, their pay is increased by a certain percentage. This package is good because it encourages the employees to learn and the employees are motivated to attend the training sessions organized by the Bank Group. They ensure external pay equity within one country office, i.e. a n employee at HQ may receive higher salary than one in Pakistan at the same position/grade. But the Pakistani employee will receive pay that is compatible with Pakistani labor market Diversity & Conflict Resolution System: The World Bank's staff members come from all 184 member nations. More than 7,500 work at the bank's headquarters in Washington, while nearly 3,000 work in field offices spread across the globe. This makes world bank one of the most diverse organization in terms of cultural/ethnic, professional, as well as gender diversity. While the diverse nature of the bank is one of its strongest assets, it also presents the organization with its biggest HR management challenges. While dealing with such a wide scope of cultural differences and backgrounds, there can be quite a few misunderstandings and conflicts. It requires a lot of understanding, sensitivity, and respect for other cultures and personal backgrounds. In short, it takes a good diplomat. For this reason World Banks sophisticated Conflict Resolution System (CRS) ensures that the conflicts arising from the diverse culture are tactfully dealt with and the benefit of diverse culture is not over shadowed. Succession Planning: World Bank is working on succession planning. It is focusing on developing a large pool of young talented employees for future use but at the same time the fact that it is the most diverse organization on the planet, its employees want improved succession planning for ethnic minorities and more opportunities for women

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COMPARISON BETWEEN WB & NBP Se r 1. Focusing on succession planning by developing a This area is lacking in NBP. Though they are large pool of young talented employees 2. trying to retain their talent pool. WB NBP

Employees are given skill based pay in WB, i.e. In NBP the pay structure is linked to the position basing on their qualification, past relevant an individual is holding. experience.

3.

WB believes in 360 degree pay performance In NBP no such system exists to evaluate their feedback. The feedback both from the employers is employees performance on monthly basis. The given to employees about their weakness. employees are not intimated about weaknesses. The weaknesses are addressed only when there is a complaint.

4.

WB has ended the use of paper-based file instead At NBP there is still a paper-based system in they scan all documentation into an image based practice. record system.

5.

Coaches and mentors are available in WB to The system of coaches/mentors in NBP is non employees for support and development existence.

6.

Turn-over rate at WB is high because of rapidly Turn-over rate is very low. Since it is a public changing work/technology specially to those sector organization so the efficient & the deademployees who dont adopt change if there are wood both have strong existence in NBP. surplus employees, demotions are also done & they also follow a work sharing system The demotions are not there. If someone is to be demoted, there could be disciplinary ground & not surplus employee.

7.

Recruitment process starts with a clarification of There is no forecasting system to hire the future forecasting needs. employees the hiring is linked to upfront requirements.

8.

They use detailed questionnaires covering all aspect This system for evaluating the job description is to carryout job analysis. not there in NBP rather job description is disseminated by the HR department of NBP.

9.

Due to global operation they have decentralized They have centralized system of working which is

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structure which goes with its differentiation headed by the Head office of NBP strategy. 10. The employees are trained to work in the boundary They work and are rotated within country and are less career. 11. seconded to other countries of NBP only

WB used multi-rator tool which ensures that For performance evaluation NBP has its ACR performance measured is more reliable. (Annual Confidential Report) which has its resemblance to graphic rating method.

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RECOMMENDATIONS
The management at NBP realizes the importance of HR practices. This is why the HR department of NBP is very active in strategy formulation and implementation phases. But after analyzing the HR practices at NBP, it has been observed that some areas still need improvement. For the improvement following RECOMMENDATIONS are suggested: Although NBP uses online application system for job placement for the management trainees and has conducted job fairs at various business schools but it should be a routine practice for talent hunt. The selection process at NBP for the MTOs (Management Trainee Officers) is based on written tests and GD (Group Discussions). The written test and GD is designed to test their overall intellectual capacity rather than their Banking knowledge. But the same procedure for hiring experiences staff should not evolve the same testing procedure but it should include questions to test their banking knowledge as well. Although a course evaluation form is in place that asks for the evaluators feedback on every aspect of the course content but the management should give a serious thought and take necessary steps to honour the feedback (if it is logical). Feedback should also be provided to them on how they can improve their performance. A detailed discussion in an open environment should take place after the appraisal between the employee and his immediate boss in which the manager should indicate where exactly the employee needs improvement and how he can bring in that improvement. Based on their discussion they can also plan the training programs employee needs to attend. For the newly hired employees, mentors should be assigned. So that new entrants know what their job is, who to contact in case of problems faced on the job, and where will they be heading in near future in terms of their transfers and trainings. They will also have a feeling of being looked after. The conflict resolution system at NBP is very informal and ineffective. Employees at the most get informal advices from their managers regarding the conflict. These issues should be taken more seriously and the management should have formal conflict resolution channels. For example, NBP should have a professional mediator who can resolve issues between 2 parties at a lower level. If conflict persists, the parties should be forwarded to the appeal committee which should consist of 5 to 6 unbiased individuals who should hear the case and give their judgment. Their decision should be binding. Once the conflict has been resolved, the manager should make sure that parties to the conflict get back to their assigned work as smoothly as possible. The management should also provide training on ethical and behavioral issues. Most of the times, one of the parties involved in the conflict is transferred to some other branch. This is not a proper way to end a conflict. There should be some proper and just system to solve such problems. NBP management is not using any formal method to redesign the job. Although the HR manager we met talked about the job redesign, but there is not any formal method. The managers do it by their own will. Thus HR department should be involved in redesign process. HR department must use the latest techniques in practice (physical, biological, motivational, mechanistic) approach. There is a need to enforce corporate laws, as NBP is a semi government organization.

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CONCLUSION
NBP has a very broad network in Pakistan. The top management of NBP has done very well in terms of the profits. The top management is also willing to invest more in the HR department, as it knows the importance of the HR practices in this era. Most of the HR managers working in NBP still need improvement to have an HR expertise. They need to follow new trends in the field of HR. As we know that, there are so many banks and financial institutions in Pakistan which have a very effective HR system and they follow latest trends to retain their best employees e.g. the HR of Standard Chartered and Citibank is very strong, they offer additional benefits to their employees, and in this way they are attracting more people. In order to compete in the labor market, NBP should adopt to the latest technologies used all over the world. NBP should hire personal in the HR department who are specialized in HR field. These personal would be more competent, and they would have knowledge about the latest trends, tools and techniques of HR. By doing this, HR department would become more effective, and it would reduce costs and increase productivity in the longer run. HR Goal Setting Conferences are also a regular feature through which the goals and objectives for the upcoming year is firmed up with a view to identify right kind of people, socialize them in the right direction, train them, assign tasks and roles that bring out their best, motivate them to put extra effort and perform well and create conditions where the employees have a sense of fulfillment to retain NBPs position as Employer of Choice. The steps taken for strengthening of HR base in NBP has been instrumental in achieving record performance. This has been empirically proved through KPIs received from the field. Nevertheless to remain competitive NBP cannot be complacent and it should adequately prepare its human resources for meeting challenges of competition in future. National Bank should adapt the HR culture as that of World Bank. NBP should consider their staff to be their assets and try their level best to keep their staff happy and satisfied so that they can be more productive. Having an international exposure NBP is the only organization which is dealing in such a diverse workforce and to manage such a diverse workforce is definitely the biggest HR challenge faced by NBP. Like World Bank NBP should also keep on updating its HR practices and almost all the latest HR trends are being followed in the World Bank.

40 References: Ms Maria Abbas. (National Bank of Pakistan, Karachi) NBPs official website: http://www.nbp.com.pk World Bank official website: http://worldbank.org Web Sites Consulted: http://www.espireinfo.com/hr.htm http://www.shrm.org/hrmagazine/ http://www.citehr.com/-vp2183.html http://www.eridlc.com/index.cfm?fuseaction=textbook.chpt04