Internship Report on

National Bank of Pakistan

(Human Resource Department)

Submitted by: Tamania Khan Registration #: FA04-BBA-037

Supervised by: Mr. Azizullah Sayal

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

July 2008

Internship Report on
National Bank of Pakistan
(Human Resource Department)

Submitted by: Tamania Khan Registration #: FA04-BBA-037 Supervised by: Mr. Azizullah Sayal
This internship report is submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Administration awarded by the COMSATS Institute of Information Technology.

Department of Management Sciences COMSATS Institute of Information Technology Abbottabad

July 2008

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Department of Management Sciences

COMSATS Institute of Information Technology Abbottabad

Approval Sheet

Approval Committee

1. External Examiner Mr. ____________________________________________ Signature_______________ 2. Supervisor Mr. ___________________________________________ Signature_______________ 3. Head of Department Mr. __________________________________________ Signature ________________

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DEDICATION

Dedicated to my beloved parents and friends.

Abstract
National Bank of Pakistan is one of the premier banks of Pakistan, It has its headquarters in Karachi, It is Government controlled bank and played a unique role both as a commercial bank and as a trustee of public finances. Operating through a network of 1445 domestic and 23 overseas branches .It has been art the forefront of national economic development .Its contribution in the development of small and medium size entrepreneurs is significant .It is credited with introducing such innovative schemes as Peoples credit scheme, Supervised Agriculture scheme, Saiban schemes for homeless and Educational loan scheme on compassionate grounds. Focus of this study is to establish the link between the theory and practice which is core function of the professional individual in the corporate, public and non govtmental organizations. Inter-alia Human Resource Division of the national Bank of Pakistan is on the line of new modern theories and techniques and meeting the international required standards where functions of HRM i.e. recruitment ,selection, training, retention, and development are performed, how ever national bank some times also hire the services of consultants like Sidat Haider Murshid. Thorough study and analysis of the HR policies of the National Bank was made through various available sources it was found that most of the HR policies of the national bank are compatible to the international required standards however there is a little discrepancy due to various political, social, demographic and religious factors contingency approach and adhokcism is also adopted .to eliminate this discrepancy recommendations have also been suggested.

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Table of Contents

Acknowledgements Abbreviations Executive Summary

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CHAPTER -01 Introduction to the Report 1.1 Purpose of Study 1.2 Objectives of the internship: 1.3 Scope of the study: 1.4 Limitations of the study 1.5 Benefits of the study 1.6 Methodology 1.6.1 1.6.2 Primary Data Secondary Data 01 02 02 02 03 03 03 04 04

1.7. Scheme of the Report CHAPTER-02 Introduction to the Organization 2.1 Historical background 2.1.1 2.1.2 Groups and Departments of National Bank of Pakistan: Products of National Bank of Pakistan:

05 07 08

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2.2 Corporate Profile 2.3 General Information: 2.3.1 Awards and Recognitions: 2.3.2 Network of National Bank of Pakistan: 2.4 Organizational Structure: 2.4.1 Introduction to NBP Mandian Mirpur Branch 2.4.1.1 Departmentalization 2.5 Core values: 2.5.1 Vision 2.5.2 Mission 2.5.3 Objectives 2.6 Other Information: 2.6.1 Services 2.6.2 International Banking: 25 2.6.3 NBP Islamic Banking 2.6.3.1 Deposit Schemes 2.6.3.2 NBP Islamic Banking - Financing 2.6.4 National Bank of Pakistans branches: 2.6.4.1 Domestic Branches: 2.6.4.2 International Branches: CHAPTER 3 Human Resource Management 3.1 Basics of Management 3.1.1 Human Resource Policies & Practices 3.1.2 Job Description 3.1.3 Annual Job Objective: 3.1.4 Job specification: 3.1.4.1 Example of job specification requirements: 3.1.5 Job evaluation:

09 10 11 11 12 22 22 22 22 23 23 24 24

25 26 26 26 26 27

28 28 29 30 33 33 34

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3.2 Recruitment and Selection 3.2.1 Recruitment policy of National bank of Pakistan: 3.2.2 Procedure 3.2.3 Conditions of recruitment 3.2.4 Selection Process 3.2.5 Employee orientation 3.2.5.1 Role of HRM in Orientation 3.3 The Development Function 3.3.1 Pay Package-Grant of Incentives 3.3.2 Measures for Improving the Result of (BDE) 3.4 Motivation 3.4.1 Performance Management System of the Organization 3.4.1.1 Employee Evaluation Program 3.4.1.2 Grading Plan of EEP on Bell Curve Distribution 3.4.1.3 Guidelines for Evaluating Managers 3.4.1.4 Promotions 3.4.1.5. (A) For Officers and Executive (Up to SEVPS) 3.4.1.6. (B) Promotion from Clerical to Officer GR-III 3.5 Maintenance Function 3.5.1 Benefits Administration 3.5.1.1 Encashment of Leave Preparatory To Retirement 3.5.1.2 Voluntary Handshake Scheme 3.5.2 Pay Allowance and Benefits for Clerical and Non-Clerical Staff 3.5.3 Pay, Allowances and Benefits for Executives & Officers 3.5.3.1 Advance against Salary to Employees on Eid-Ul-Azha 3.5.3.2 Advance against Salary to Employees on Eid-Ul-Fitr 3.5.4 Benefits, Allowances, Incentives for Retired Employees 3.5.5 Leave Encashment 3.5.6 Normal Retirement Benefits 3.5.7 General Administration 3.5.7.1 Occupational health and safety

35 35 35 36 36 37 37 38 38 39 39 39 40 40 41 41 42 45 48 48 48 48 48 50 51 51 51 52 52 52 52

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3.5.7.2 Employee privacy 3.5.7.3 Employee Disciplining 3.5.7.3.1 Penalties and Punishments 3.5.7.4 Unions 3.5.7.4.1 Registration 3.5.7.5 Communication Mechanism 3.5.7.6 International HRM 3.6 HR analysis: CHAPTER 4 SWOT Analysis of NBP 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4 Threats 66 CHAPTER 5 Conclusion and Recommendations 5.1 Conclusion 5.2 Recommendations References List of Figures 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Organizational structure Corporate & Investment Banking Group Commercial & Retail Banking Group Operations Group Audit & Inspection Group Financial Control Division Employees Benefits, Disbursement & Trustee Division

52 53 55 56 56 56 56 57

61 62 65

69 69 72

2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 3.1

Special Assets Management Group Organization Development & Training Group Overseas Co-Ordination & Management Group Information Technology Group Risk Management Group Treasury Management Group Human Resources Management and Administration Group Regional Structure Grading Plan of EEP on Bell Curve Distribution

List of Tables 2.1 2.2 2.3 3.1 NBP Overview Universal Banking Capabilities Matrix Structure Method of Rating Categories

List of Annexures Annexure A: Organizational Overview Annexure B: Overseas Operations Annexure C: Application form for Management Trainee Annexure D: Regional Organization Structure of NBP Annexure E: Training & Research Annexure F: High Calibre Management Trainees Annexure G: Female Recruitment

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Acknowledgments
I pay thanks to Allah who bestowed me the strength for submitting me this report. Life the student with in the class room and institute is just like a Bird-Cage situation and getting out of this situation is not possible without the help of technocrats, experts and teachers. I express my immense pleasure and honor to my supervisor who made me able to present this report. I am highly indebted to my supervisor Azizullah Sayal who helped me out to present this report. I am also grateful to all my respected teachers. I am also grateful to Ms. Taranam Sarwar, Mr. Saqib Jadoon (Branch Manger) and to Mr. Qaisarani Zonal Chief Operations National Bank of Pakistan for their valuable information and briefing.

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Abbreviations
A ABL ADB Ads AGP B BCO BDE BID BoD BPD BSD C CM CMT D DMT DTCs DGs E EDs ERP EEP F FRM FPT FY G GMT GOP Group Management Team Government of Pakistan Financial Resource Management Fit and Proper Test Fiscal Year Executives Directors Enterprise Resource Planning Employee Evaluation Program Departmental Management Team Departmental Training Coordinators Deputy Governors Corporate and Media Affairs Department Corporate Management Team Banking Companies Ordinance Banking Diploma Examinations Banking Inspection Department Board of Governors Banking Policy Department Banking Supervision Department Allied Bank Limited Asian Development Bank Authorized Dealers Auditor General Pakistan

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H HR HRD HRMS HEC I IBD IBP ISD M MIS MoU MSD N NBP NIBAF NIPA O OG P PBA PER PIM PMS PSD R Rs S SBOTS SBP SPU T TABS Technical Assistance for Banking Sector State Bank Official Training Scheme State Bank of Pakistan Strategic Planning Unit Rupees Pakistan Bankers Association Performance Evaluation Report Pakistan Institute of Management Performance Management System Payment System Department Officer Grade National Bank of Pakistan National Institute Of Banking and Finance National Institute of Public Administration Management Information System Memorandum of Understanding Medical Services Department Islamic Banking Departments Institute Of Bankers Pakistan Information Systems Departments Human Resources Human Resource Department Human Resource Management System Higher Education Commission

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Executive Summary
Banking has always been the main field of interest for most of the students of business administration. It is also an academic requirement to undergo internship therefore the main purpose behind this report is partial fulfilment of requirements, for the degree of BBA. The objective is that report encompasses the experience of the internee, his/her learning, and analysis in light of which recommendations are made. In the first chapter introduction to the report, background of study, scope of the study and merits of the study are given. The second chapter is about introduction to the organization, its historical background, how it came into being, what the major reasons behind it were and what areas of banking it covers. Corporate profile of the bank consisting of Board of Directors, audit committee legal advisors and NBP head office in Karachi. The organizational structure of NBP, its core values, financial highlights all are provided in this chapter. The third chapter is the major portion of the report. The areas covered in human resource management are the overview of HR policies and practices in NBP, job analysis practices including job description, job specification and job evaluation of the organization. An important function of HR recruitment and selection its procedures and the selection process used are discussed. The information regarding the candidates who are selected and the orientation given to them so that they are better socialized with the organization. The development function, need assessment and providing training accordingly to cater to those needs, the complete study of appraisal systems, and the methods used for evaluation and the criteria for promotions. Study of how rewards are given and the pay structures in the concerned organization. Maintenance function consisting of benefits administration: medical, insurance, voluntary benefits, retirement benefits, golden handshake and issues relating to occupational health and safety in NBP. Disciplinary procedures, penalties and punishments and the role of unions in the organizations. The last topic covered in this chapter is International HRM as NBP have overseas branches also so the policies and practices operating there are also studied. The 4th chapter of the report covers the analysis of report and the findings that were seen. SWOT analysis of the organization was done as it acts as a mirror for the management to

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know the strengths and weaknesses so that it can take appropriate corrective actions. The management should develop elaborate plans for capitalizing on the available opportunities. The major problems observed were wastage of time, inappropriate reward systems, no employee involvement and reasons for low customer satisfaction were discussed. The end of the report is about recommendations and conclusion.

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