Maryam Naeem MC080202354 MBA (HRM)

National Bank of Pakistan Civil line branch Gujranwala

Brief Introduction of NBP Overview Business volume Competitors

Overview of National Bank of Pakistan One way to keep momentum going is to have constantly greater goals National Bank o f Pakistan was established on November 9, 1949 as a semi public commercial bank. The main purpose of the National Bank of Pakistan at its initial stage was to extend credit to the agriculture sector. At that time the crises were on their peak so the main purpose of National Bank of Pakistan was to face the problems that had arisen with regar d to financing of jute trade.

Overview National Bank started its functions on November 20, 1949 with its very important eight jute centers in the East Pakistan. Mr.Ghulam Farooq was announced the first chairman of Jute Board and Mumtaz Hassan was announced the first chairman of National Bank of Pak istan. National Bank of Pakistan was remained totally under the Jute Operations till 1950. The first M.D of the National Bank of Pakistan was Mr. M.A. Muhajir. In 1952 Governor of State Bank of Pakistan decided to replace Imperial Bank of India by National Bank of Pakistan.

Overview By becoming Mr. Mumtaz Hassan the MD of NBP, the number of branches, deposits and the number of employees had increased significantly as compare earlier, it was all happen by the great struggle of Mr. Mumtaz Hussan. to 2.31 billion, and staff to 14, 963. Up to 1965, the shareholders had received 225% of their original investment. Rs.208283 million deposits. In Dec. 1966 its 600th branch was opened raising the deposits Now it has more than 21549 employees 1537 branches and

Business Volume of NBP 1. 2. 3. 4. 5. Paid-up capital is Rs.8969 millions. NBP has net assets worth Rs.102459218. Shar e Capital is Rs. 8154319. Earning per share is Rs. 23.34. Reserves worth Rs. 157 72124.

Competitors Askari Bank Habib Bank Limited United Bank Limited First Woman Bank Muslim Comme rcial Bank PICIC Commercial Bank Bank of Punjab Dubai Islamic Bank National Savi ngs Allied Bank Limited Saudi Pak Commercial Bank Ltd Union Bank Limited

Competitors Faysal Bank Standard Charter Prime Bank Bank Al- Falah My bank Silk Bank Sonehri Bank Metropolitan Bank Arif Habib Bank The Bank of Khaibar Bolan Bank Limited P latinum Commercial Bank Ltd Mashreq Bank

Organizational Hierarchy Chart Chairman and President Board of Directors Board-Sub Committees President Secretariat Management Committee Audit Committee HRM Sub Committee Sports and Culture Committee IT Sub Committee Islamic Banking and Subsidiaries Operations Committee Assets and Liability Committee Credit Committee Secretary Board of Director Group IT Group Corporate and Investment Banking Group Special Asset Management Group Treasury Management Group Audit and Inspection Group Compliance Group HRM and Admin Group Operation Group EBD and TD Islamic Banking Division Credit Management Group Commercial and Retail Banking Group Financial Control Division Overseas Coordination and management group 29 Regional Offices Overseas Offices Regional HR Chief

Regional Operations Chief Regional Credit Management Chief Regional Business Chief Regional Compliance Chief

Training Program During the short time period of eight weeks of my internship at National Bank of Pakistan, I was given an opportunity to work in following four departments of t he bank. HR Department Accounts Opening Department Government Department Clearing Department

Tasks in HR Department I match the entries in master file with the given voucher. I entered the expense s in their relevant accounts. I arranged the vouchers by date. I prepared debit and credit vouchers. I prepared office notes. I stamped different bills on the i nstructions of HR Manager. I was told about how salary is estimated every month. I was told about the whole procedure of staff loan issued to staff members.

Tasks in Accounts Department I entered data of current and saving accounts into the computer system by using special software called CIF. Provide information to cus tomer what are the benefits for having account with NBP and how can one open the account. I fill the account opening forms in. Recheck the forms to make sure th at the forms are error free. I stamped the documents on the instruction. I check ed the essentials to attach with the forms like ID card, Application form. Then I was told about to issue the cheque book.

Tasks in Government section I learn how to behave with customers if they are in anger because usually pension holders are aged people. I learned how to handle the doc uments like cheques, account information, stationary bill etc. I observed the be havior of employees and customers. I learned how to keep the records I learned c omputer operating in this section. I learned how to manage the receipts and paym ents.

Tasks in Clearing section I assist in separating the fanfold and NIFT (National Institutional Facilitation Technologies). I stamped the cheques for outward inte rcity clearing. I prepared some memos. I recorded intercity clearing entries in required register. I learned how to make bundle of outward clearing cheques. I l earned those cheques which have been returned due to some reason must be checked again. In this department, I again prepared debit and credit vouchers.

Tasks in Clearing section A major issue was balancing the payments. I assist for this also. I learned that it is of tremendous importance to keep the record of p revious clearing in hard form. I helped to keep the cheques separate which are b rought in bank for clearing purpose.

Structure of HRM Department President Dr. Mirza Abrar Baig SEVP/Group Chief Secretary Institutional Discipline Wing Legal Affair Wing OD & Training Wing Sports Wing Industrial Relations Division Personnel Administration Wing Recruitment and Compensation Wing Staff Loans and Welfare Wing HR Policies and Projects wing Regional HR chief at regional Offices

HRM Process in the Organization The Guidance of HRM Committee of Board is a fuel for HR Team going forward with s mart goals Human resource planning and forecasting Employees recruitment & selection Training & d evelopment Performance management Employee compensation & benefits Organizationa l career management Labor management relations

HRM Process in the Organization Following steps are included in Human Resource Process. 1.Determine Mission of Organization 2.Scanning the Environment of Organization 3 .Lay Down Strategic Goals 4.Devise the Strategic Plan

Human resource planning and forecasting Forecasting: 1.Zero-base Forecasting: This method is used to find out the future staff needs at National Bank of Pakis tan by considering the current level of employment as the staring pint. 2.Bottom-up Approach: It is a forecast method in which each successive level of the NBP, starting with the lowest and forecast its employee requirements in order to ultimately provid e an aggregate forecast of employment needs.

Human resource planning and forecasting Forecasting: 3.Simulation: Try out with real world situation through a mathematical model rep resenting the situation. 4.Mathematical model Usage: For forecasting HR requirem ents, Mathematical model is also used. It shows the connection between needed em ployees and demands the number of employees.

Employees Recruitment & Selection

Recruitment Sources of candidates: Internal Sources: In this category, opportunity is given to NBP lower level managers by promoting them. External Sources: In this area, opportunity is given to the people outside NBP.

Selection Employees recruitment & selection vacancy published in newspapers Applications received and Scanned Eligible candidates are called for written test Group Discussion Final Individual Interview

Training & development Training need assessment: In training need assessment following sources help HR department. New technology Customer complains Interview with managers Customer satisfaction survey E mployee complaint Company records Observation etc Self assessments

Training & development 2.5 month Training for Selected Candidates: 1 month at IBP( Institute of Bankers Pakistan)

1.5 month at Staff College

Training & development The staff college obtains low-ranking bank officers for more preparation in banking sector with the course duration from six to nine weeks ha ving 25 students in each course. The bank also employs officers to attend banking tutorial both in Pakistan and out of the country and it adds immense significance to the flow of thoughts, information and facts which can be helpfully add to from these get-togethers.

Training & development National Bank of Pakistan has two essential training methods: 1. It is associated with the training and development of mid term plans, concerning new customers & middle level staff. Training & development for long-standing pl ans, concerning the job development of senior level staff. 2.

Training & development National Bank of Pakistan implements off-job and on-job policies to educate middle and higher level its workers. National Bank of Pakistan training & development school counsels Job rotation to make sure and make easy the creating of all rounder. National Bank of Pakistan has faith in pre-post training test for on hand staff and post training test for new human resources.

Performance management Performance management is the setting performance standards and hopes/expectation s. Here are eight (8) situations to think when setting Performance standards: Stand ards of performance are: 1.Achievable 2.Let for review and modify 3.understood b y the worker when performing job 4.Based on the job and not on the individual do ing the job 5.As measurable and specific as possible 6.Should be time-oriented 7 .Always in writing 8.Settled by both the supervisor and employee

Performance management Human Resource Development section, all the time, takes chance to assess the performance of human resources. The appraisal system also helps the management of the NBP to help the managers with placement, pay, and other HR de cisions. The HRD section of the NBP carries out the appraisal for the following uses: It allows the employee, the Manager to take necessary about the improvement of the performance. The system also assists in promotion, increment in salary of the deserving employees after their assessment and also gets ready for the next person for the succession plan.

Employee compensation & benefits Travel/Meal/Housing Allowance , medical, vacation,

Overtime Pay

Benefits including: dental, insurance

leaves, retirement, taxes Bonuses, Profit Sharing, Merit Pay Commissions Stock O ptions Base Pay

Organizational Career Management Employee job changes: Job changes must be made in agreement with the public service rules and policies in the classified service. Any individual selected or promoted must be skilled as fit in accordance with and focus to the civil service official procedure. The state personnel director will manage the documentation of each and every promotio n & appointment.

Job changes with the organization Promotion Transfer Demotion

Promotion In the merit based policy of 1999, in general, appraisal of an employee was foun dation of following: a.Points Average gained by the employee in his service duri ng preceding three years b.Points, he would get in an assessment by the promotio n or encouragement committee. The given points by the promotion committee, never theless, again abridged the work out to a automatic process as: 60% points were f ixed for qualification, service time span & standard of service 40% points were g iven to aim criteria. More improvements in the plans are being considered.

Transfer Transfers on request take place only on sympathetic and medical grounds even as another cause is set off by the bank for meeting its administrative or organizational necessities that is to fill the available vaca ncies. Worker can remain posted in one unit for up to 3 years and in a division for up to 6 years, yet some offices used to frequently transfe r their employees from one unit/division to another.

Demotion Conditions to demote any employee: The demotion is asked for by the employee and is accepted by the hiring authority. The employee position has been brought to an ended. Employee is not performing adequately. The employee is put out of plac e by coming back to duty of another employee entitled to the position. The posit ion of employee is downwardly reclassified. The employee is demoted by another e mployee with more superiority during a decrease in manpower. The employee does n ot receive an acceptable trial service score.

Separations Layoff Termination:

Resignation

Retirement

Separations 1. Layoff: Layoff takes place when there is excess of human resources in NBP. So, layoff is the short-term suspension or lasting termination of service of an employee or e mployees group for certain reasons, for instance, decision that some positions ar e no more essential or a business is slow or disruption in job. System of Nation al Bank of Pakistan is computerized consequently need of staff in no more in som e departments. This can be a bigger cause of Layoff.

Separations 2. Termination: Reasons for Termination: The end of the agreement for which the employee was in employment Employee sickn ess and incapability to do work Removal from office. Employee Resignation Other reasons

Separations 3. Resignation: The Member of Staff must Inform to his line manager in written form about his/he r intention to resign by giving the suitable contractual notice time. The Line M anager Arranges the notice, date of leaving job and verifies annual leaves that are outstanding with the staff member. Any outstanding annual leave remaining sh ould be taken prior to say goodbye to the organization whenever possible.

Resignation Takes and forwards resignation in written to Human Resource Management along with verification of: Agreed date of leaving yearly le ave situation notice of leaving the bank or transferring to another branch or br anch Make sure that the staff member returns data on very last day.

Separations 4. Retirement Procedure: 1) Human Resource Management Department notes down the employee CC li ne manager direct leaving date. 2) Line manager organizes casual gathering with member of staff to talk about the procedure and verifies right to ask for contin uous working. 3) Line manager writes to member of staff verifying meeting CC to Human Resource Department 4) Employee decides to give up work in the form of ret irement at the age of 65. 5) Normal retirement process applies.

Labor management relations There is a harmony among labor and management relations in National Bank of Paki stan. Both cooperate with one another. Human Resource Management Department take s care of the opinions of union. NBP always shows an affectionate and supportive mindset towards fresh employees and greets these employees. Society for labor w elfare is structured inside National Bank of Pakistan, which operates with the a id of National Bank of Pakistan.

Labor management relations A good affiliation is formed and it provides; 1) Arrange variety shows for the employees families 2) educational funds or benefits for the employees 3) Instant aid to an y accident. 4) incentives to on the job deceased

Critical Analysis As I read about CRM , organizational culture, etc, at different stages of MBA in different courses, I found most of the things are not present in NBP. Fac tors are like; poor customer dealing by bank staff. There is no discipline in organization. on time. Customers have to wait for them. If any one comes late in office, HR Manager points him /her out, and takes necessary action but no one gives importance or listens the HR Manager. most of the staff members come late than

Critical Analysis HR Manager of NBP regulates the employees to come in time and their own work, as major part of the work is done by those internees who have been trained by them. Staff training is needed to teach them how to deal efficiently with customers especially with old aged customers. to fill the gap. Such staff members are not mentally prepared to adopt new technologies No proper facility to accommodate the customers and no proper information desk which can provide information to the customers.

Critical Analysis No proper check and balance on employees discipline. There is a lack of motivati on in the bank. HR Manager is educated enough to perform his\her duties but somehow, somewhere, he is unable to control the whole situation as this can be d one only when cooperation from both sides. Here cooperation from the staff side is missing. Internees are not entertained well.

SWOT Analysis

Strengths Zonal Branch State bank Agent Maximizing Shares Holder s wealth Hiring Qualified Workers Government Based Bank Well defined Policies and Objectives Dress code L ockers ATM Western Union Pension Distribution

Weaknesses Poor Discipline/Punctuality Poor Dealing Lesser number of employees Nepotism Amb iguity in Assessment Procedure Security Cameras are good for nothing Critical Pr ocess Information Desk Compliant Box is not safe:

Opportunities

Deposit Mobilizations Introduce New Products Improved marketing Strategy Adverti se the Products and Services

Threats Lower interest rates offered by other banks Threat of new Potential Development of substitute Products Political Influence Political Instability Rivalry among c ompeting Banks

Conclusion I conclude: One of the largest online banks in Pakistan is National Bank of Pakistan. It works according to rules and regulations set by State Bank of Pakistan. If I say, future of overall National Bank of Pakistan is bright, it will not be wrong. But when talking about civil line branch of NBP in Gujranwala, my point of view is totally changed.

Conclusion In my opinion, the future of civil lines branch is in danger. tionship management, poor customer

Poor customer rela

dealing, poor discipline are some factors which can harm the branch at macro lev el and can become a major cause in the fall of civil lines branch in near future . strength and opportunity available in market, then it is a support to the drow ning boat of civil line branch of NBP in Gujranwala. But if branch overcomes its weakness by utilizing its

Conclusion HR department has become helpless due to rigid and non changing behavior of Employees. Old employees do not want change actually. which deals with all Civil line branch is the zonal branch

small branches in Gujranwala region, if any branch faces any problem; civil line branch handles it as it is the head office in Gujranwala.

Conclusion Paper work of NBP is awesome, but latest technology is as important as to survive in the market and to be in competition. If NBP in Gujranwala covers all its weaknesses, and takes opportunities at right time, surely it can be on the way of progress Insha Allah and will contribute in overall progress of NBP at national level and as w ell as at international level.

Recommendations Regulatory authority is highly needed concerning the disciplinary matters. A com mittee of senior qualified expert staff should be physically present at bank to receive complains by customers and catch the guilty person red handed. Complain box should be sealed. Facilities to specially old aged pension holders

Recommendations Security cameras should be technically alright and latest. Branch must review it s Marketing strategy whenever any new entrance of competitor or any product in m arket is visible in market as substitute NBP should introduce deposit mobilizati on products. A check and balance should be imposed on all employees that all emp loyees follow rules and regulations.

Recommendations Training session should be held at different intervals in a financial year. Top Management as well as employees must follow the rules and regulation. Account op ening, loan issuing and some other procedures should be more convenient and flex ible. A handsome amount of fine should be charge to the guilty employees.

Recommendations Any strategy implied for the over all benefit of organization should be accepted by every one, no one should have any objection on it. Appraisal should be fair, transparent, and secured. Separate information desk must be established in bank to facilitate the customers. Prompt reply to the queries of the customers.

Recommendations Favoritism and nepotism should be strictly dealt. Any employee whether of lower rank or upper rank found involved in favoritism and nepotism sh ould be removed on the spot. the market situations and keep the working be up to date. gap. A separate investigation team should be formed to investigate New qualified and competent employee must be hired to fill the

Recommendations All branches of NBP should be online for customer convenience and for best link among all its branches. customers with huge bank b alance. pressure by politicians Bank mangers should not encourage the influence of Higher authority should be free from any influence and All branches should deal foreign exchange.

Recommendations Internal audit should be held and executed fairly. us importance. It should also be held fairly.

External audit is of tremendo

Differential products should be introduced by NBP. Marketing Strategy should be improved. facilitation should be provided to civil line branch.

Thank You