Virtual University of Pakistan

Evaluation Sheet for Internship Report Spring 2010

HRMI620: Internship report (HRM) Credit Hours: 6

Name of Student: Muhammad Owais

Marking scheme Report writing Presentation & Viva voce Final Status

Total marks Pass Pass Pass

Students ID: Bc040400235

Evaluation Date: September 15, 2010

Make your points short and simple and it should convey the meaning as well so that you can properly present the SWOT in the presentation Improve the report accordingly prepare yourself for the presentation Wish you good Luck!

1.Title of the Page

The Bank of Punjab ( Fridi chowk Branch Jampur 0098) Muhammad Owais Bc040400235 Virtual University of Pakistan.

2.Letter of Undertaking

3.Internship Completion Certificate

4.Dedication
I want to dedicate my work to my Parents.

5.Acknowledgements
In the name of Allah The Almighty, The most merciful and gracious I want to give a heartily and cordial acknowledgement to the BOP Jampur Branch staff for supporting me during my internship and also helping me knowing my strong and weak areas. I heartily give my thanks to Branch manager for so much warm appreciation and motivation during my work and creating an intrinsic motivation in me to perform my assignment not for the sake of any reward but to learn and improve my abilities. He maintained a parent ego state rather than adult ego state so that I may understand his instructions more clearly. After that I heartily thanks to MR Faisal Aziz Mazari Credit Officer for guiding me and providing me a vast bulk of oral as well as documentary information that is making the majority of my work. I also give heartily thanks to Mr. Wassem Ullah Maher (OG3) for giving me assignments on various occasions. I also warmly acknowledge my father Ex Branch Manager of United bank Limited. in helping me out in wisely using the available information and compiling the information in my own way and also giving me some necessary information that is also making part of this report and sharing his professional experience and knowledge.

6.Executive Summary
This report is designed to show accurate picture of BOP by discussing their exact objectives while operating the various operations. In this report its historical back ground has been briefly discussed along with major services that it provides and products that it offers to its customers and all the information has been gathered from authenticate sources. This information is wisely assembled and then complied in my own way. This report contains information extracted from both primary and secondary sources and then presented in communicating manner. In this report after discussing products and services, business volume, staff strength, the management structure of BOP has been shown that is confirmed from most authenticate and updated sources. After this main area has been discussed that is HRM functions in BOP that remained very difficult task to collect that information but due to sheer guidance of Mr.Faisal Aziz Mazari (Credit Officer). I was able to collect the required information and related sources such as BOP newsletter and IBP services in this concern and all the information regarding HRM practices has been organized after consulting with HRM VU handouts MGT501. After that the various concepts taught during the course has been critically analyzed that were available in authenticate secondary sources including various HRD dimensions and internal control system along with various types of conflicts and human relations critical aspects as observed by me. In the end the strengths and weakness of this Bank in terms of HRD and HRM has also been elaborated. In this report all the information has been compiled, organized and interpreted in good manner. One copy of this report was sent to Regional Office D.G Khan as well for making part of their record by Bank officials.

7.Table of contents Business Sector-----------------------------------------------------10 Organizational overview -----------------------------------------11 Historical Background----------------------------------------------11 Vision, Mission ------------------------------------------------- ---12 Core values---------------------------------------------------------- 12 Entity Rating by PACRA------------------------------------------12 Business Volume---------------------------------------------------13 Product Line--------------------------------------------------------14 Deposit Products----------------------------------------------------14 Current Accounts-------------------------------------------14 PLS Saving accounts--------------------------------------14 PLS Term saving accounts-------------------------------15 Loans /Finances----------------------------------------------------16 Consumer Financing----------------------------------------16 Agriculture credit--------------------------------------------16 Commercial Financing--------------------------------------18 Services---------------------------------------------------------------19 Commercial Banking----------------------------------------19 Corporate Banking-------------------------------------------19 Investment Banking------------------------------------------20 Other services--------------------------------------------------21 Cash management services-----------------------------------21 Utility bills------------------------------------------------------21 Lockers----------------------------------------------------------21 Remittance Services ------------------------------------------------22 Demand drafts-----------------------------------------------22 Telegraphic transfer/ Mail Transfers---------------------22 BOP online---------------------------------------------------22 Call Deposit--------------------------------------------------22 Organizational Hierarchy and personnel------------------------23 Balance sheet Year 2008----------------------------------------------26 Profit and loss account year 2008------------------------------------27 Management Hierarchy of BOP Fridi Chowk Branch------------30 Functions of Various departments-----------------------------------32

Plan of Internship Program----------------------------------------35 Training Program----------------------------------------------------36 Structure of HR Division--------------------------------------------37 Functions of HR department---------------------------------------38 HRP------------------------------------------------------------39 Forecast of employees and method of forecast-----------40 Selection process----------------------------------------------41 Methods of Recruitment-------------------------------------42 Selection Criteria----------------------------------------------43 Screening-------------------------------------------------------44 Pre employment testing--------------------------------------45 Group Discussion-------------------------------------------- 46 Interview-------------------------------------------------------47 Training and development-----------------------------------49 Training mode-------------------------------------------------50 Career development-------------------------------------------53 Performance appraisal and management-------------------54 Compensation to employees----------------------------------55 Benefits----------------------------------------------------------57 Organizational career management--------------------------59 Promotions------------------------------------------------------59 Demotions-------------------------------------------------------59 Transfers--------------------------------------------------------59 Employee relation and complaint handling-----------------61 Critical Analysis-----------------------------------------------63 HRD--------------------------------------------------------------63 Internal control system and compliance----------------------64 Personal Observation-------------------------------------------65 SWOT-------------------------------------------------------------67 Strengths-----------------------------------------------------------67 Weaknesses-------------------------------------------------------69 Opportunities------------------------------------------------------71 Threats--------------------------------------------------------------72 Conclusions-------------------------------------------------------74 Recommendations------------------------------------------------75

8.Business Sector
BOP is scheduled bank that operate in Banking and Finance sector and experiencing very positive financial ratios such as Total assets turnover, EPS, Dividend per share, Gross spread ratios, and Price earning ratios that shows good financial health of BOP.

9. Organization Overview
a) Historical Background and Overview The Bank of Punjab Group is consist of The Bank of Punjab Punjab Modaraba services private Limited. The Bank of Punjab became a scheduled Bank on September 19, 1994 following The Bank of Punjab Act 1989. This Bank is one of the most prominent and leading Banks of Pakistan that through its better quality and competitive products and services has gained the credible image in the eyes of the customers. BOP is involved in commercial banking, corporate banking, investment banking, cash management services, and remittance services. Its transactions are quick and error free due to an efficient internal control system. Along with the above services it also provides competitive products to gain maximum share in the market. These products include consumer finance, commercial Finance, Agriculture credit and deposit products in order to meet the needs of consumers, SMEs, large and multinational companies and farmers by providing them necessary finance and attractive returns on their deposits. These products and services help the bank in increasing its profitability, getting high return and gaining a maximum market share. BOP has a network of 273 branches all over the Pakistan including Azad Jammu and Kashmir. Like its other competing banks it is also listed on the three stock exchanges. E.g. Lahore, Karachi, Islamabad. Majority of its shares are held by Government of Pakistan. BOP through its subsidiary, Punjab Modaraba services (Pvt) is engaged in the business of managing and floating modarbas operations.

Vision Statement To be a customer focused bank with service excellence Mission Statement To exceed the expectation of our stakeholders by leveraging our relationships with the government of Punjab and delivering a complete range of professional solutions with a focus on Program driven products and services in the agriculture and middle tier markets through a motivated Team Core Values

Our Customers

As our first priority

Profitability For the prosperity of our stakeholders that allows us to constantly invest, improve and succeed Corporate Social Responsibility: To enrich the lives of community where we operate Recognition and Reward: Excellence: Integrity: Respect: Credit Rating Entity Rating by PACRA Long Term Short Term AAA1+ For the Talented and High Performing employees In every thing we do. In all our dealings For our customers and each other

b. Business Volume In 2008 Total Assets remained = 185,909 (Rupees in M)

c. Products Line Products

1. Deposit Products Definition of Account: The account is a contract of offer and acceptance between bank and customers. Current Account It is a deposit account maintained by customers where the amount can be deposited and withdrawn any time on demand. Mostly working capital of daily sale is kept in these accounts by the parties. The bank has to pay no profit in these accounts to the customers but take benefits and utilize these funds. It is a zero cost account for bank which improves the profitability of Bank. Other Various current accounts BOP Basic Banking Account BOP Tijarat Account (LCY) BOP FCY Supreme Current Account

PLS/ Saving Account: It is an account maintained by the People where they keep their necessary savings and bank has to pay some profit. Zakat is also deductible on these accounts on the balance at the date of first Ramadhan ul Mubarak. In this account the amount can be withdrawn twice in a week and can be deposited at any time. If the heavy amount more than 25,000 is withdrawn at one time the party has to serve 7 day notice before withdrawal.

Other various Profit and loss sharing Saving accounts are Senior Citizens Saving Account Gharayloo Saving Account Ziada Munafa saving Account PLS-Saving Profit Plus Account Corporate Premier Account BOP PLS Supreme Saving Account BOP FCY Supreme Saving Account Fixed account/ Term account It is a kind of time deposit where the customer has to deposit his surplus amount for a specified fixed period of time. In these accounts the bank has to pay the profit fixed for the specific period. The deposit can be withdrawn before and after maturity of period according to the term and conditions If the customer has to withdraw his amount before maturity he has to return some portion of the profit already received by him. Note: All the deposits at the time of withdrawn on counter are capable to pay withholding tax imposed by government of Pakistan. Other Various Term Accounts are BOP Pehlay Munafa Scheme Corporate Premier Term Account Munafa Hi Munafa Term Account - III Bai Misaal Term Deposit Account

2. Finances/Loans
Consumer Finance This kind of finance is provided to consumers to fulfill their needs repayable in easy installments. Consumer Finance involves various schemes through which consumers can get loan according to their necessary needs such as if they want to buy a car, motorbike, house or home appliances then they can avail consumer finance schemes. BOP has following schemes for Consumer Finance. Assiah Loan Quick cash BOP Car Loan BOP house Loan BOP motorcycle leasing scheme Agriculture Credit As Pakistan is basically an agriculture state and production of various crops play a vital role for the prosperity of Pakistan. The services in agriculture sector intend to provide the farmers and landlords with the necessary credit facility with mark up if any. The major aim of agriculture credit is to facilitate the farmers and landlords in fulfilling their needs. It also plays a significant role in increasing the crop productivity in Pakistan by facilitating farmers in their needs by providing necessary credit facilities. In this regard, BOP has privilege of being a pioneer bank in Agri Financing and in this concern its one revolutionary step is introduction of hub structure that has a wide spread network of branches that is covering Punjab down to Tehsil/Town level. In this concern it has introduced many schemes regarding livestock development, live stock breeding improvement, tractor lease finance, drip irrigation finance, cold storage finance, commercial agro services, and finance for installation of biogas plant and Agriculture finance.

The various Loan Scheme are as follows. Green Tractor Lease Finance Scheme Agri Finance Branches Agricultural Finance Scheme Kissan Dost Tractor Scheme Second Hand Tractor Lease Finance Scheme Kissan Dost Aabiari Scheme Kissan Dost Mechanization Support Scheme Kissan Dost Farm Transport Scheme Kissan Dost Eslah-E-Arazi Scheme Kissan Dost Live Stock Development Scheme Livestock Breed Improvement Trough VVW Kissan Dost Commercial Agro Services Kissan Dost Agri Mall Finance Scheme Corporate Farming Finance Scheme Commercial Lease Finance Tractor Scheme Demand Finance-Sheds Construction and Civil Works Lease Finance Facility for Milch Animals Running Finance-Livestock/Poultry and Fish Farms Kissan Dost Model Dairy Farms (PDDC) Kissan Dost Model Milk Collection Center (PDDC)

Kissan Dost Green House Finance Facility Kissan Dost Cold Storage Finance Facility Scheme for Controlled Sheds Lease Finance Facility for Installation of Biogas Plant Group Financing to Small Farmers Clean Credit Facility through Syngenta Franchisees Zarkaashat Drip Irrigation System

Commercial Financing This kind of finance facilities are intended to provide finance facilities to commercial or business sector for various purposes. These include schemes for Running finance, Demand finance, Auto lease Financing, Car dealers financing, Finances for purchase of offices and shops etc. Running Finance Demand Finance Cash Finance CNG Filling Station Scheme Auto Lease Financing Scheme Car Dealers Financing scheme Karobar Barhao Scheme Fertilizer Dealers Financing Scheme Ali Akbar Group - Franchise Financing Scheme Atlas honda Limited - Authorized Dealers Financing Scheme Financing Scheme - Purchase of Office/Shops

 Services

Commercial Banking
Commercial banking in bank of Punjab provides its services to small and medium size customers. Commercial Banking in Bank of Punjab satisfies the needs of small size and medium size clients. In this regard the sales turnover is considered to ascertain the accurate credit exposure, which improves profitability of bank. This help the bank make efficient use of resources. Its main focus remains on active marketing to get maximum number of customers from market These small and medium size or SME clients can open their accounts, avail loan offers and keep their deposit in banks.

Corporate Banking
The corporate banking in BOP provides its services to Multinational Companies and Public sector entities. In this concern, maximum number of customers is recruited as well as the relation ship with current clients also focused. In an effort to gain a good market share, it offers to its client wide range of products on competitive prices and its main focus remains on better quality compared to its other competing banks in market. It helps these clients in maintaining and expanding their business by offering them such facilities as working capital, trade finances, project financing and BMR. BOP has a Corporate Management Group that provides financing, advisory, operational services according to needs of clients. These multinational companies and public sector entities can open their account in BOP, can avail financing and loan offers from BOP and keep their deposit in the Bank.

 Investment Banking
The aim of investment banking in BOP is to increase the shareholders confidence in the bank and also increasing customer value. For this purpose, The BOP has delegated the responsibility of making and then executing the investment banking strategy to Investment Banking Group. Its one main objective is providing unique and valuable advices to investors in dynamic and ever changing challenges of markets that investors has to confront. BOP has a very efficient risk management frame work as BOP has to face market risk, Equity position risks, Liquidity risks, operational risks. Under this risk management frame work a team of motivated and highly qualified professionals is always ready to perform their roles. The services that investment banking group provide are as follows TFCs, Syndicated Finances Structured Finances Leveraged Buyouts Project Finance Quasi-Equity Products Independent Advice Equity Placements IPOs Equity Underwriting Mergers Corporate Restructuring Acquisitions Other products Fund management facilities.

Other Services BOP is scheduled bank that provides wide range of services to customers these include Working Capital Finance including overdraft, FE Loans etc. Pre and Post shipment Export Financing(PKR and USD based) Import Financing(PKR and USD based) LMM Funding Cash Management Services Trade Services including Letter of Credit, Letter of Guarantee and Standby Letter of Credit, etc

Cash management services

According to daily transactions of receipts and payments of cash on behalf of customers are considered in order to organize the funds making available in customers operating accounts.

Utility Bills services

Customers can pay their utility bills such as electricity, water gas, telephone, at any branch of BOP directly going to cashier at respective counter.

Locker Facility
BOP also offers locker facility to its customers. Respective charges are as follows Small Rs 1200 Medium Rs 1800 Large Rs 3000 Extra Large Rs.6,500

 Remittance service:
1. Demand Draft The remittance services include the Demand drafts through which the money is send to the specified branch on the request of applicant. The name of beneficiary, the drawee branch is mentioned on demand drafts. 2. Telegraphic Transfer /Mail Transfer At the request of the applicant, the amount can be transferred from one branch to another branch in the name of beneficiary by applying some numerical codes. 3. BOP online The BOP online includes online transfer of money through senders account to receivers account. 4. Call Deposit It is the security that the customers have to pay before their transaction is finalized. On accomplishment of transaction, customers can withdraw the call deposit amount or transfer them in their private accounts

10. Organizational Structure and Management

President Secretariat President: Mr. Naeemuddin Khan Deputy CEO :Mr. Khalid Siddiq Tirmizey Audit & Risk Asset Review Group Head Audit & Risk Mr. Ijaz ur Rehman Qureshi Asset Review: Head Operational Audit: Mr. Abdul Rehman Head Risk Asset Review & BASEL Audit: Commercial Banking Head Commercial Banking Credit Administration Head Credit Administration Division Deputy Head Credit Administration Division: Compliance & Internal Control Mr. Irfanuddin Mr. Hafeez ud Din Corporate & Investment Banking Head Corporate & Investment Banking Group-I & Group-II Mr. Khalid Qaiyum Mian Muhammad Sharif Mr. Shahnawaz Saeed Khan Mr. Liaquat Ali Mr. Shahzad Ahmad Cheema

Consumer & Agriculture Credit Group Head Agriculture Credit Head Consumer Banking Division Finance Chief Financial Officer Deputy Head Finance Human Resource Division Group Head Human Resources Deputy Head Human Resources Head / Principal Officer's Training Institute Legal Head Legal Syed Mudassar Hussain Naqvi Mr. Moghis Bokhari Mr. Naveed Hafeez Shaikh Syed Zaki Ahmad Mr. S.M. Atif Mr. Ahmed Razi Ghazali Mr. Nadeem Amir Mr. Muhammad Iqbal Shahzad

Retail Banking
Group Head Retail Banking Head Branch Banking Head Institutional & Public Sector Liability Chief Risk Officer Mr. Shahid Waqar Mahmood Mr. Amer Mumtaz Mr. Amir Hassan Mr. Abdul Razzaq

Services
Group Head Operations, General Services Division & Information Technology: Head Operations Head Administration Head General Services Mr. Fawzi Khawaja Mr. Faqir Syed Azm Ali Mr. Sajid Arif Nomani Col. (R) Tenwir ul Hassan

Head Security / Transport Head Information Technology

Lt. Col. (Retd.) Sajid Ali Khan Mr. Azhar Hussain Dilawari

Special Projects
Group Head Special Projects Mr. Sajjad Hussain

Special Assets Management

Head Special Asset ManagementCommercial Head Special Asset Management: Deputy Head Special Asset Management-Commercial Deputy Head Special Asset Management Mr. Salman Saeed Mr. Mahboob ul Hassan Mr. Moazzam Mahmood Maneka Mr. Khalid Munir

Transaction Banking
Group Head Transaction Banking Group & Equity Capital Market: Head Treasury: Mr. Mustafa Hamdani Mr. Khawar Shahid Ansari

Staff Members:
Staff Strength 4,156 (in 2008)

Balance Sheet of BOP for year 2008

Balance Sheet As at December 2008
Assets 2008 2007

Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets

10,685,057 2,178,455 633,333 22,711,980 131,731,158 3,471,838 8,388,162 6,109,137 185,909,120

14,210,302 1,927,662 2,450,000 73,461,695 133,893,585 3,252,759 5,805,097 235,001,100

Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 1,219,801 12,278,773 164,072,532 30,632 4,564,257 182,165,995 3,743,125 937,647 17,842,915 191,968,909 40,321 2,205,530 3,009,984 216,005,306 18,995,794

Net Assets Represented By Share capital Reserves (Accumulated loss) / Un-appropriated profit Deficit) / Surplus on revaluation of assets - net 5287974 7,427,232 -7,658,686 5,056,520 -1,313,395 3,743,125 4230379 7,427,232 3,452,842 15,110,453 3,885,341 18,995,794

Profit and loss account for year 2008

Profit and Loss account for the Year 2008 2008 Mark-up/return/interest earned Mark-up/return/interest expensed Net mark-up/ interest income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly 17,752,969 16,614,000 1,138,969 18,863,580 366,387 19,229,967 18,090,998 2007 17,539,094 13,939,377 3,599,717 1,616,421 24,479 246,869 1,887,769 1,711,948

Net mark-up/ interest income after provisions

Non Mark-up/interest Income

Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale and redemption of securities Unrealized gain / (Loss) on revaluation of investments classified as held for trading Other income Total non-markup/interest income

577,630 2,020,896 324,328 733,787

653,512 1,804,878 377,233 2,039,535

526,185 4,182,826

547,635 5,422,793

13,908,172 Non Mark-up/interest Expenses

7,134,741

Administrative expenses Provision against other assets Provision against off balance sheet items Other charges Total non-markup/interest expenses

2,799,933 10,101 114,700 2,924,734 16,832,906 16,832,906 207,600 1,052,000 -8,033,001 -6,773,401 -

2,250,777

292 37,950 2,289,019 4,845,722

Extra ordinary/unusual items Loss) / Profit Before Taxation Taxation Current Prior years Deferre d

4,845,722 169,252 -19,921 250,772 400,103 4445619

Loss) / Profit After Taxation

10,059,505

Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets - net of tax

3,452,842 5,572 3,458,414 -6,601,091

3,219,246 5,866 3,225,112 7,670,731

(Accumulated loss) / profit available for

appropriation

Basic (loss) / earnings per share (after tax) Rupees Diluted (loss) / earnings per share (after tax) Rupees

-19.02 -19.02

8.41 8.41

a. Management Hierarchy of BOP Fridi Chowk Branch Branch Code 0098

b. Functions of Various Departments (as visited and observed by Internee) Manager Name Mr. Saleem Qureshi Functions 1. Ensure the attendance, Punctuality, and also branch organization. 2. Supervision of working of all branch deposits/Advances. 3. Customer solicitation to gain maximum share of deposit from the market. 4. Introduction of bank deposit policies in the market. 5. Overall working of branch 6. Dealing with different clients 7. Timely submission of returns to concerned quarters, 8. Assurance of branch attendance 9. Watching of subordinates behavior towards clients 10. Maintenance of overall discipline of branch. All the matters of administration field were being handled by Mr. Muhammad Saleem Qureshi in well manner

Cash Officer Name: Position Vacant 1. Remittance Functions Demand Drafts Call deposits/pay orders BOP online Telegraphic transfer Mail transfer

2. Check Books issuance 3. Ensuring that check book are available In case of lost requisition, Check book is issued through F-12 New check book is issued through F-11. 4. Filling the deposit slips. 5. Replying to balance queries. 6. Further Processing on the Soft wares

Cashier
Name: Mr. Kashif Kamran 1. Paying the cash 2. Receiving the Cash 3. keeping the cash in safe 4. Stamp the receipt/ paid vouchers and entering them in relevant book. 5. Receiving the utility bills. 6. Stitching and sorting of Cash. 7. Keeping the cash within cash in safe and cash on counter limit. 8. Timely disposal of surplus cash to concerned quarter.

OG III (No designation)

Name: MR. Waseem Ullah 1. Opening the accounts 2. Advisory functions 3. Suggesting the suitable account according to the requirements of customers. 4. Maintaining the daily balance sheet of bank and ensuring that it is balanced or not. 5. Further Processing on software.

O.G III
Name: MR. Mian Iran Functions. 1. Passing the checks by stamping them pay cash after posting in relevant account. 2. Verifying the Signature from Signature Specimen Cards scanned in PC. 3. To Receive ATM card requests. 4. Verify the balance in accounts 5. Scanning the SS cards. 6. Also verifying that pay slips and cross checks has same amount and not mistaken on pay slips. 7. Preparation of transfer entry vouchers. Relation Managers/ Credit Officer (Commercial) Name: MR. Faisal Aziz Mazari 1. 2. 3. 4. 5. Opening the Loan accounts. To perform advisory and informatory functions for customers. To make the loan proposals and advices for commercial customers. Seeking approval of loans and notifying the customers. Then prompting the clients to pay mark ups /installments on regular basis and also notifying them about consequences of not paying the installments thus creating a deterrence based trust with clients.

Relation Manager/ Credit officer (Agriculture). Name: MR. Allamdar Abbas 1. 2. 3. 4. 5. Opening the Agriculture loan accounts. Advisory functions to clients such as farmers and landlords. Making loan proposal and advices. Seeking approval of loans and then notifying clients about this. Regularly prompting customers to pay installments on regular basis by notifying them about the consequences of not paying installments thus creating the deterrence based trust with the clients.

11. Plan of Internship Program

Bank provides the internship programs facility to the fresh students of various institutions. Bank also stipend the students in order to cover a part of their expenses during the internship period. I have completed six weeks internship in the Bank under kind supervision of Mr. Muhammad Saleem Qureshi. During my stay in the branch the resting staff of the branch supported me with enthusiasm.

12. Training Program

Major tasks assigned during Internship Program Deposit department 1. Filling the account opening forms of various kinds such as current accounts, saving accounts, term deposit accounts and preparation of SS cards, check book requisition forms, issuing check books, filling of pay slips,etc. 2. Handling of various kinds of clients by fulfilling their requirements with in my sources and referring them respective officials. Bills/Remittance/Clearing Departments 1. 2. 3. 4. Filling of demand draft application forms. Call deposits forms. BOP online forms. Issuing the receipts of instruments drawn on with in or outside bank branches.

Accounts Department 1. Watching the internal system of accounts, Method of posting of debit credit vouchers in relevant accounts in relevant accounts folios. Advances Department 1. Under the supervision of Mr. Faisal Mazari, Credit Officer I Observed the formats work fulfillment of loan proposals of different kind of loans. 2. I observed his dealing with commercial parties according to their needs. 3. Timely persuasion for timely repayments according to the sanctioned schedule.

13. Structure of HR division: (In Head Office)

The Bank has its Human Resource Division is in the Main Head Office The structure of BOP Jampur branch is already drawn that is comprises in hierarchical level from Branch Manager to Cashier, then on lowest tier gunman or security guards. Group Head Human Resources Deputy Head Human Resources Head / Principal Officer's Training Institute HR Division Staff Acting General Manager PA to GM C.M VP-1 AVP (A/CS, Salary) AVP OOC AVP(Medical) Officer ( Staff Provident Fund Officer OOC Officer (SIF &TA/DA) Officer (TAX) Officer Officer Officer Officer Officer (Computer) Data Entry CO (Dispatch) OOC/RM OOC Jr. Officer Jr. Officer Jr. Officer AAA (Medical) AAA Chief Security Guard Incharge Genitorial Service Mr Naveed Hafeez Sardar Waseem Ehitbar Mr. Riaz Akhtar MR. Shoaib Qureshi Mr. Asim Chugtai Mr. Furqan Ahmed Mr. Ahmed Zaheer MR. Muhammad Azam Mr Shahid Ashraf Mr. Rahat Jameel Mr. Shahbaz Shoukat Mr. Muhammad Azfar MR. Muhammad Latif MR. Shaheed Iqbal MR.Asad Mr. Amir Shafiqe MR. Sameer Haider MR. Nofal Jamal MR.Sohail Younis Mr.Khurrum Hafiz MS.Javaria Naeem MR. Ahmed Saleem Ms.Sadia Mr.Usman Altaf Mr. Nauman Ahsan Mr.Shahid Irshad Mr.Khawer Zafer Iqbal Mr.Shabbir Ahmed Mr.Shazad Mr. Moghis Bokhari Mr. Naveed Hafeez Shaikh Syed Zaki Ahmad

14. Functions Of HR Department The Institute of Bankers Pakistan (IBP) The institute of bankers Pakistan was incorporated in 1951. Until now it has benefited many financial sector institutions through its product and services in this concern mainly in field of HRM and HRD. Advancement in this concern is the recruitment and selection of human resource for financial institutions. IBP conducts interviews, group discussions and tests according to needs of respective institution. Initially State bank of Pakistan was benefited from its services but now major financial institutions and banks can also be benefited Major members of IBP are as follows. 1. Allied Bank Limited 2. Crescent commercial bank 3. Habib Bank Limited. 4. House building finance corp. Ltd. 5. Mezan Bank Limited 6. Pak Omen Microfinance bank Ltd. 7. Securities and Exchange Commission of Pakistan. 8. State Bank of Pakistan 9. Bank of Punjab 10. Zarai Tarqiyati Bank Limited. 11. Bank Islami Pakistan Limited 12. First women bank Limited 13. Soneri Bank Limited. 14. MCB bank Limited 15. Tameer Microfinance Bank Ltd. 16. United Bank Limited.

a. (1) HRP
The data about requirements in BOP is usually collected on the basis of the information gathered from the feed back from the various branches and regional offices. In this process it is usually done those branches also themselves notify that they have requirement of staff. Or based on the data collected from the feed back from various branches and regional offices requirements of HRP are assessed. BOP has its own email accounts usually through which instructions, orders, notifications are conveyed to employees. Similarly they also receive various feedbacks from employees through these emails.

a. (2)Forecast of employees & Method of forecast

So far as forecast of employees is concerned i. When Shortage of workers Forecasted

When the shortage of workers comes in the BOP, Then usually following methods/tact are used Competitive incentives Tact of competitive incentives is followed to compel the competitive employees from other banks but mostly this is seen at the executive level and this tact is less used as scale goes lower with exception that employees from other banks themselves leave those banks and join BOP because of its better and attractive packages. Different Selection Criteria This tact is also used but this varies as scale and pay varies. Such as more important the post is, they are stricter regarding selection criteria, In banks although the qualification gets importance, but in order to fill vacancies every post has its own requirements. For example a graduate may be hired in case of absence of masters thus lowering the selection standards according the required situation. ii. When Surplus of Workers Forecasted

Amazingly BOP has not yet experienced the major problems of surplus workers, as BOP has not yet adopted the policies of Golden handshakes, layoffs. But when excessive staffs come in any branch then employees are transferred to accommodate them in some other branches.

b. Selection process c. Sources of candidates

Internal Recruitment Yes BOP has the policies of internal recruitment when they are looking to fill the vacancies. Promotions So far as existing employees are concerned, they are given the opportunity to work on higher post that is lying vacant rather then hiring a new employee

External recruitment At Intermediate Level At the intermediate level Triple As are hired by banks, these are additional administrative assistants. University Fresh Graduates and Masters University graduates and masters are source of applicants for BOP. But it is to be considered that Banks do not personally contact these Universities through sources but applicants have to apply themselves for internships and jobs. Unemployed Masters and Graduates Despite of this unemployed masters and graduates are also a source of applicants for BOP. Unemployed masters and graduates are recruited through recruitment advertisements. Military Personnel So far as military personnel are concerned then these are usually army gun mans and just related to security these solicited. Competitive incentives Also mostly at the executive level, the competitive employees are welcomed from other Banks. But this may take place at lower tier as it has been part of practice in bank.

 Methods of Recruitment used in BOP. So far as methods of recruitment is concerned, Advertisements

Advertisements are most common method of recruitment by the bank. These include websites and news papers. IBP Package in this concern provides its services such as to draft, design and then process the job advertisements that are then published in newspapers. It is also released on website of IBP. Internships Students are given the internship opportunities in the banks. .

 Selection criteria
In BOP selection criteria varies depending upon the type of job. Such as when it is for Cash officer post, then his education, competency, skills and abilities are more important, But when it is for security guard, his experience, and personal characteristics take more importance. But when is for executive level, then experience, qualification, skills and abilities, competencies all of them assume the importance. So selection criteria vary depending upon what is actually required for job. Right person for right job is the selection criteria for BOP. But the complete selection process is discussed below and its main selection criteria is merit that involves passing and clearing all the stages of selection such as pre employment tests, group discussion and benchmarks of concerned bank and BOP fully avails services of IBP in this concern. Final selection list is issued by BOP itself.

a) Screening In BOP, The selection process starts with initial screening where those applicants that do not meet the jobs specification and description are screened. IBP Package includes as follows. Receive, Organize, Process CVs/ Job applications Replying to Questions. Making the list of eligible candidates Releasing the admit card Short listing of candidates HRG group of BOP also in order to verify the information provided, they are asked for two reputed people so that they may contact. Even Universities are also contacted for degree confirmation.

b) Pre employment testing The key points of IBP Package are observed in the bank which is as follows. On request of client, IBP makes the examinations papers, and sample tests. It also specifies the weight age for each session. It contacts the respective bank so that they may give their authorization. After getting the approval, it designates the examination centers and also appoints the superintendents, invigilators and examiners. The admit cards are printed and dispatched to candidates. A list of eligible candidates is released on the website. IBP then receives requests of change of centers. It also receives the complaints such as if some candidate on the website list has not received the admit card. Such test papers carry following contents English writing and compression Maths, logical inference. General knowledge Knowledge about banking. Each part has weight varying between 30 to 40%. Part 2 and 3 are solved on computer sheets and it grading is done through OCR. If Bank requires a computer literacy tests then such tests are also conducted and after compiling them these are supplied to bank. IBP usually conduct such test on 8 to 10 centers within the country and 4 to 5 centers outside the country. The efficient supervision and control is ensured in very clean and friendly atmosphere. Admit cards, CNIC and identification slips are checked to confirm the identity of candidate. At the end of the test copies are collected, counted and verified with attendance record, packed and send to IBP Head office. When IBP Head office receives these copies, then they codify, separate name identity slips from copies and then send to examiner. Ultimately when results are received then finally these are tabulated, counter checked and computerized. When decoding process is completed, the merit list is prepared and finally provided to clients. Bank then finally does the further short listing as per their discretion. Then information is released in IBP website.

c) Group discussion

A topic for discussion is prepared and placed in envelops. A group consisting of 8 to 10 members is invited to attend a session. A team of experts then attend each session. Now this group is asked to pick up 1 envelop and this exciting group discussion process starts. IBP sends call letters for group discussion to candidates sending it directly through courier service. A panel consisting of 3 members, 1 from IBP and 2 from concerned bank observe and evaluate each group and then finally they are graded. When result of group discussion comes, respective bank does further short listing.

d) Interview

Type and Method of interviewing The next phase is to call for interview those applicants that have passed the test. The interviews involve both structured and unstructured pattern where not only job related questions are asked but also few general knowledge and other kind of questions are asked from applicants. Board Interview. The type of interview that is in tradition of BOP is board interview in which representatives of the bank and associated serving institutes usually take the interview. A senior level panel 2 from bank and 1 senior expert from IBP conducts the interview and grades the participants.

e) Background Investigation In BOP the background investigation is done that is done by verification of educational back ground from the universities. Also from the record of police, their criminal record is also checked. And also previous employers are also contacted for the verification purposes. Personal reference may be utilized for this purpose such as the contact number of two noble persons of your area is asked for. f) Appointment letters to candidates Final results are the send to respective bank where further short listing is done by the bank as per their discretion. BOP then sends appointment letter directly to the addresses of the successful candidates. Note: Recently appointments are being made on contract basis with suitable salary packages. g) Probation Period This is usually done in BOP where the employees are sent to position on the probation period and on satisfactory work they are made permanent. h) Post induction Training BOP Follows IBP packages as under: When the candidates are finally selected, they are asked to enter into post induction training varying between 2 weeks to 10 weeks. Post induction training program are designed after consultation with the concerned bank by IBP. The main purpose of this training is to bring following development. Technical development Personnel development

Major objective of these training are e. To teach basic knowledge on Banking laws

 Products Processes Risks e. To teach them how academic knowledge is practically applied in Banks.

c. Training and development

(a. Training Need Analysis BOP through their training need analysis, assess the training needs. Currently various TNA practices observed by current staff are as follows that they replied to me in answer to my question. In BOP TNA analysis include Self Assessment The training needs are assessed on the basis of self assessment such employees usually themselves assess in which area usually they require training and they are provided when training session comes accordingly. Observation Also Observation is also a good tool infect in past a team came where they got hidden cameras. That time a Female Cash officer was offering the duty. Customer came and asked her that he wanted her to make demand draft for him and she pointed him with out seeing to go to operations manager. This scene was recorded in their cameras and he was strictly daunted and such behaviors were corrected on training session through role playing. New Technology Also when new technology is introduced then training need is assessed such as when computers became necessity of bank then every employee was given computer training as now their was no room for status quo. Customer Complaints

ECCC reviews service and operational related complaints/queries/ feedback from the customers directly as well as through State Bank of Pakistan, Banking Maltase Pakistan, Government bodies/ Departments etc. These external customers complaints also become source of assessing the training needs. Bank Records Similarly according to them they also used bank records for this purpose.

 Employees grievances Employees grievances also indicate them need for training.

a. (2) Training Mode On the Job training Yes here on the job training is also provided with in these branches. On site training

Some banks and financial institutions demand that training programs should be held at their own sites. In such a case IBP has to design the training programs after consulting with concerned banks and objectives are also determined after mutual consultation. But BOP also facilities its employees to attend the training workshops and seminars of IBP. OTI (Officer Training Institute) is the Academy where training is provided to the employees in BOP. OTI (Officers Training Institute) BOP set up its training institute in 1989. OTI is located at 296-Upper mall, Lahore. This is spread over 4 Canals. It has 2 lecture Ivities has halls each having sitting capacity of 24. It has offices for Principle and Directing staff members. OTI is equipped with state of art multimedia facilities Here mess services for 20 resident trainees are also provided Its faculty includes 4 experienced and dedicated permanent members to provide quality training.

OTI has conducted 30 coursers on various subjects these include Branch banking Agriculture Finance IT Operations KYC credit

E.t.c

Major focus remains on Soft skills development Technical skills development New Academic block of OTI. According to decision of management, OTI will be established in a new building and this building is located in commercial center of city. It will be given a complete floor and it will soon be made provided with state of art multimedia structure in order to start educational activities.

a. (3) Methods used to provide the training Multimedia and Lectures The training is provided through lectures delivering them to employees and Multimedia and Power point presentations are used to deliver them training lessons. I also observed specimen of Power point presentations and Window media player videos used to deliver the training lessons to employees. These were much similar to our VU teaching technique. Multimedia technique is a traditionally used method in BOP to teach the training lessons. As per newsletter OTI is equipped with the state of art multimedia equipment conductive to better learning hostel facility. Role Playing Also role playing is used in the sense that they may model their behavior according to the situation encountered as how to react in any situation. Exercises Also in training the trainees are provided case and asked to solve this such as they are given unbalanced balance sheets and asked to balance these. Simulation Training is provided in simulated environment and it also follows the question and answers session. Internships Internships are traditionally used method of on the job training

b. Career development Not any mentoring is seen and not any tuition is given related to this.. But in case of problems arising they can get coaching from respective superiors through emails from BOP email service. In this concern IBP provide banks some advisory functions IBP is playing a very crucial part in advisory and consulting services buy bringing in use the advices of retired, highly experienced and senior professionals that are provided to banks as well as to stakeholders. These services include Developing operational manuals Guidelines Reports Presentations These cover all bank related subjects including Risk management Anti Money Laundering Corporate Governance Lending operations SME Finance Micro Finance All other products and services of financial service sector.

Here Consultancy services regarding HRM are also offered.

d. Performance Appraisal and Management The performance appraisal of the staff is usually done through following three parties Branch Manager Area Manager Regional chief

As such points are distributed in appraisal of above three. Final appraisal result is declared by head Office. But there is exception for Credit officers Their appraisal is done by Unit Manager Then goes to General Manager.

Their Final result is also declared by Head Office. A B C These are grades given to them

e. Employee Compensation and Benefits a. Types of compensations: Compensation to employees. So far as direct financial compensation is considered these include following in their pay package Basic pay House allowances Medical allowances Utility allowances Conveyance allowances Bonuses Telephone Reimbursements

From their compensation package following deductions are made. Provident Fund G.P Fund B.Fund Group term insurance Income tax Installments of loans (where applicable) Compensation of Directors and executives Fees Managerial Remuneration Bonuses Contribution to defined contribution Plan Rent and House maintenance Utilities Medical

Other allowances.

Bonuses The bonuses are also given to employees on completion of targets in form of cash prizes.

Commissions BOP has just introduced the business development officers that will be paid commissions along with other pay package items.

.b Benefits They also introduced some schemes for the benefit of employees in past such as employees plot scheme in past through this a lot of employees purchased the plots. Staff Retirement Benefits Employee compensated Absences The value of provision for employee compensated absences is determined using actuarial valuation. This valuation includes making assumptions about discount rates, mortality, expected rate of salary increases, retirement rates and average leave utilization per year. Such estimates are subject to significant uncertainness because of the degree of subjectivity involved and long term nature of these plans Discount rate 15% Expected rate of eligible salary increases in future 14% Average number of leaves utilized during the year 7 days Average number of leaves accumulated per annum by employees Gratuity Schemes

23days

BOP makes provision in its financial statements for its liabilities towards gratuity scheme based on the of last drawn basic salary of employees who have completed five year of their basic salary. This scheme is intended for those permanent employees who have completed five year of their services from their date of joining or contractual employees who have become permanent. Defined contribution Plan (Provident Fund).

The bank has also provided the provident fund scheme, include all permanent employees and the contributions are made by bank and employees at the rate of 8.33 % of the basic salary. Contribution charged by bank is charged to income. Life Insurance Schemes and Medical Insurance Schemes

The bank has also provided attractive group life insurance Schemes and Medical Insurance for its staff. Benefits to Executives The Chief executives and other executive officers are provided with bank maintained cars. These employees can also avail following leaves Sick leaves Casual leaves Privilege leaves Mandatory leaves

Mandatory leaves among these are those leaves that employees are favored to avail on mandatory basis these leaves are reserved for them.

f. Organizational Career Management: Job changes within the organizations:-

Promotion Employees are usually promoted on the basis of Appraisal being A+, A or B. It can be on the basis of internal recruitment policies usually on the recommendation of superiors. Demotions In BOP demotions take place usually on the following basis When there is Doubt on integrity Or being involved in fraud Or on Bad performance Transfers According to BOP policy employees are transferred when Three years are completed On request of staff members When there is shortage of worker Or when there is excessive staff in any branch.

Employees Separations

Resigns The employees resign from the job when they wanted to leave the job. But they have to give 3 months notice before resigning. Retirements The employee can take retirements on completion of job tenure. Quits or deliberating leaving job In case of quits they have to return three months basic pay. Discharge or Firing An employee is fired when found in serious fraud. He can be discharged on completion of contract if his contract is not renewed or his work is not found up to mark on completion of contract.

g. Employee Relations and Complaints Handling

a. Grievance Handling / Compliant Handling Usually used method of grievance collection is through blank Performa that are mailed to all employees to fill. Where various questions are asked from them related to their problems. In these way employees problems are assessed and then solving actions are taken for them. Infect bank maintain their good relationship with the employees with their employee friendly policies. According to Faisal Aziz Mazari There are currently no unions in BOP. b. External customers complaints handling A customer Focused Bank As per instructions in TQM course Customer is our Boss ECCC reviews service and operational related complaints, queries and feedbacks. These complaints are tried to resolve quickly. This network comprises of Area operation manager Regional operational heads

The complaints pertaining to any branch /area/region are investigated by an inquiry officer. This inquiry officer sends its investigation report. This investigation report is carefully examined. The necessary steps are taken so that this may not happen again. c. Ways of collecting customer complaints ECCC has provided various options in this concern Compliant forum These are available in each and every branch mentioning email address and telephone numbers of ECCC. Direct Call Customers can call anywhere from Pakistan Website They can also lodge their complains on BOP websites. Customer Complaint Box The customers can also put their complaint in customer complaint boxes in Branches.

15. Critical Analysis

a. Human Resource Development A critical Look: To my opinion the HRD strategy of the BOP is quite excellent where senior management provide necessary direction and leadership to the staff, and they get the work from employees according to their skills and potential. It is a good practice to provide good carrier development opportunities. Similarly they are provided training to equip them with necessary skills and knowledge that is needed accordingly. Various methods of providing training are already discussed and hence surprisingly many of the methods taught to us in lesson are used during training. Their HRD Strategy is quite excellent that has made this bank the most proficient bank of Pakistan. Here the aptitude of the employees is assessed at all the levels and also high performing employees are recognized. It means their HRD is mainly focusing the high performers. This will give them a benefit of retaining these high performers by promoting them up, and also getting the maximum performance from these employees hence playing a key role in taking the BOP to Heights. The HR strategy of BOP mainly focuses on the supporting and increasing the professionalism in employees so that they may have sense of responsibility being the professionals such as they may have a regard of their reputation and position in the bank. As their negligence during performing their work can harm their reputation as well as will affect their overall performance that will become prominent after performance appraisal.

After assessment, it is reported BOP has competent staff and its workers are highly skilled and their skills are further developed through regular training. It is to great surprise that these workers are very committed and self motivated to perform their jobs. No doubt this has become major strength of BOP in this concern. The staff is also allowed to attend training workshops and seminars such as at various forums like IBP, PBA and SPB. It is also committed to create synergy through elevating benchmarks and invigorated inter linkages. It has also commitment to good corporate governance that is done through creating a compliance oriented environment. It shows a good commitment to stakeholder that is to generate lucrative returns for them through business growth and diversity. b. Internal Control System and Compliance (in perspective of Change and Innovation Management) A Critical look. The Bank of Punjab has an efficient control system that has been proved a firm rock to the erroneous transactions and frauds in the bank. Compliance and control division abbreviated as CCD makes sure that whether bank is following the prudential regulations of SBP or not. It also makes sure that bank is following the banking laws or not in their daily transactions. In this concern they have appointed M/s A.F Ferguson to develop a frame work that is in line with COSO guidelines CCD has been assigned the responsibility of monitoring the implementation process. An effective implementation will ensure an effective control system in bank. One more important part of CCD is its account and transaction monitoring unit that monitors and review the transactions over one million on daily basis. When out of pattern transactions are detected, these are thoroughly investigated with related branches. In case a transaction is found suspicious it is immediately reported to Financial Monitoring Unit. There are legal penalties on none reporting, misreporting or concealing facts leading to jail of up to 3 years or fine as per AML ordinance or both. According to theoretical concepts, it is an effective and excellent control system through which Bank is today recognized as most reliable bank in Pakistan. This control system is a major strength of BOP.

e. Human Relation Aspects and Conflict Managing Aspects Despite of comparing the HRD and Control system in Bank to theoretical concepts..I have personally observed some major Issues in this Branch. Although with the passage of time I have not seen a lot status quo in the branch yet at the same time I have observed personal Ego problems with the employees and employers. Here I have personally observed the stereotype behavior while dealing any client or customer. With regard to their behavioral attitude, I just noticed that the person having better social position are dealt differently as compared to people having bit lower social position. All the game is own satisfying each others interests. Such as If any person that is although well reputed in the society but yet not wealthy enough to give the manager any monetary benefit will only be dealt diplomatically. That means all formalities will be satisfied but in the end official will bid farewell with an excuse that will be satisfactory for him. I have rarely noticed the constructive conflicts but mostly destructive conflicts that always end up in disputes between negotiating parties. The relations are important aspect as only relations and references are something I have fully observed. Employee does every thing to preserve their relationships with valuable customers.

Infect, a good manager is a person that knows the art of good relations with its clients that will help him in preserving and maintaining the existing relationships and perpetuating this credible fame so that he may activate an automatic inflow of clients to the branch. During my practice in BOP, my main focused remained on good public dealing, let customers notify us about our mistakes, and maintaining a friendly attitude that create a good image in the eyes of customers. I also tried my level best to satisfy the various problems and conflicts in their minds. Infect, Alhumdolliah, I was warmly appreciated by manager during this period for my mannered attitude and not so bad performance in assigned tasks. The level of trust that is created is calculus based trust mostly, because if the customer knows the consequences and still breaks the trust, then simply he is illegible to pay the penalty. BOP also creates knowledge based trust based on the knowledge of other party.

16. SWOT the SWOT analysis must be in bulleted form and write to the point
Internal Attributes of Organization 1) Strengths: ( internal attributes of organization that can benefit them) a. Strength with respect to its Market Share and Widespread Network The wide spread network of BOP is its major strength that comprises of 273 branches and hence it is able to manage the delivery channels of products and services to various areas of Pakistan compared to its competing banks. This factor is playing key role in maintaining high market share compared to its competitors in various sectors of economy. Sub sectors of economy such as SMEs, Agriculture, and infrastructure and housing, export refinancing and microfinance can not get access for finance to formal financial institutions. But wide spread network or BOP has managed to access more and more those areas that can not access financial institutions and in this way it is also benefited from this strength that help him increasing its market share in various sectors of economy and it is also on constant look on increasing this network as recent 273rd branch shows an advancement towards this look. b Strength with respect to its brand name Image and distinguishing products The PACRA assessment has demonstrated support of major shareholders concerning their capital injection and stable deposit base in the market.

For example recently the drag on the banks risk absorption capacity was mitigated to certain extent due to timely injection of equity of government of Pakistan. Government of Pakistan owns 51% of shares of The bank of Punjab. Hence BOP has managed to maintain Shareholders confidence in the market and this factor indicate a strong brand name image positioned in the eyes of shareholder as a credible bank that has ability from restoring the crisis when it has to experience them. BOP has introduced comparatively distinguishing products in the market that mainly focus on increasing the customers confidence by offering attractive rate of profits and it has introduced many schemes for its current, term deposit and fixed deposit accounts and other various loan products. These unique products give him a competitive edge among its other competing banks and these schemes have already been mentioned. Especially the farmers rely heavily on its financing services especially Short term and long term for timely provision of inputs and machineries. Its tractor lease financing schemes and livestock financing schemes are key factor that helps banks in improving its market share in agriculture sector and boosting its financing. Hence it has showed a strong brand name image in the minds of all stakeholders including customers and shareholders due to its quality products and services and timely anticipation of risks that they may have to experience. c. Strength with respect to its Staff Competency. It has very competent and very qualified management that has taken many initiatives to streamline the banks operations, strengthen control and system, and improve efficiency that will benefit the bank in going forward and hence in this concern the management can play a vital role to improve its processes, strengthen its control system and improve efficiency and ensure timely provisions that became crucial due to its non earning sizeable assets mainly NPLs.. It can introduce increments, and increase the basic pay. It can increase the allowances making the over all incentive package more attractive.

2) Weaknesses: ( internal attributes of organization harmful to them) b. A subdue in Performance:The performance perspective of BOP is subdued due to significant non earning assets, mainly NPLs that need higher provisioning requirements. Although the drag on the banks risk absorption capacity was mitigated to a certain extent due to timely injection of equity by Government of Punjab the major shareholder, the banks CAR remains below the minimum regulatory requirement of 10%. b. Reactive Management:According to a news published in The Nation it has been made prominent major weakness of system in showing timely action against defaulters in recovering their bad loans from the defaulters but yet according to newspaper BOP was expected to recover those loans from the defaulters in backdrop of recent Supreme Court decision and this is done with the induction of new management. These are the reactive actions taken by BOP authorities but they should be proactive as the last prominent recovery was made by NBP where an old bad loan of bank of Mehran Bank Scandal was recovered. Hence it clearly shows a wait and see policy of management that in the end resulted in the change of management. There is recently observed high provisioning requirements in the bank and hence minimizing the risks concerning bad loans. This aspect was also confirmed by Relations Manager (Commercial) that they seldom take action against the defaulters in order to preserve their relations with their clients but when the water overflows the head, they finally has to take legal actions against the

defaulters. Thats what exactly the bad loans cost BOP in the recent PACRA rating with negative outlook. c. Delay in releasing Accounts:The bank has not released its accounts since Jan-09 however due relaxation has been given by the regulator in this concern. d. Shortage of Staff:It has currently been seen the shortage of staff in many branches.

e. Seldom Implementation of Policies:Although HRM department make policies and then send them through emails on various branches and department but it is seen seldom these policies are implemented in the branches.

2. Opportunities: ( external factors helpful to organization) It is two to be noticed that wanting more deposits is very different from winning them. The obvious way to attract new business is to jack up saving rates. But today banks are more generous then it used to be in the past, when interest rate last stood at the 20% in the Pakistan, the top saving rates on offer are more than 13% in most of institutions. For smaller banks even modest inflow of new deposits can make a big difference. And hence it becomes more difficult to make a substantial difference to size of deposits bases when they are well developed. The back book of existing customers presents particularly thorny problems because if we allow every body to enjoy higher rates then we are cannibalizing our own profits. At the same time reserving the best rates for the new customers either irritates the core depositors or invites them to try and game the system. In such a case one savers tactic in vexing the bank is to withdraw money and then to redeposit it in order to enjoy the higher rates. The bank has a very strong opportunity of introducing more and more attractive schemes concerning their various products in the market compared to its competing banks that best meet the customer needs. In this way it will be able in maximizing its deposits. It can be made possible by continuously introducing better features in its products and services with effective rates as every bank should strive for continuous improvement. The deposit business is largely built on the laziness of the customers, who keep their money in the accounts no matter what the rate, and also it is an opportunity that those who are likeliest to move when a better offer comes can be won by the BOP in this concern and they can also have those customers who are lazy enough to keep the money in banks with out caring about rates.

Sometimes in extraordinary conditions smart tact to persuade the customers can also create an opportunity to win more and more customers. BOP can persuade its existing customers to put their deposits in more profitable accounts from the existing account. This will offset the higher cost of deposit. But such accounts are not for mass market in reality but a route into deposit taking for investment banks themselves. Banks can also avail the opportunities of attracting more and more competitive employees by offering competitive compensation and benefits and can have such benefits such as employee by getting impressed by the BOPs packages can themselves join then bank. For this purpose the BOP should provide such competitive incentives that are attractive enough to attract more and more competitive employees and executives that can prove the high performers of bank.

External Factors Threats: ( external factors harmful to organization) BOP has drawn their attention to constraint socio economic environment. As strengthening the competition among banks is essential part of the SBPs 10 year strategy enhancing more diversification with new products and delivery channels. The BOP is facing a strong challenge of competing with the other banks in market and offering better quality products and services compared to other competing banks in market and current negative outlook by PACRA is something to be worried about. a. Banks Facing War for Deposits in Market. The BOP according to newsletter published for the quarter ended June 2010 is facing a challenge of battle for deposits in the markets. The banks currently want more retail funding it is easier to say then doing. The increase in financial liquidity from 2004 to onwards and low interest rates enabled the sector to fully go along with the then government strategy of boosting the economic growth through consumer financing like car leasing, mortgages, personal loans and credit cards etc. But in reality it has created greater risks. The sector covered its risk through higher interest rates of around 20 percent. Some of the analysts has predicted that it could be the beginning of troubles for the banking sector. They had foreseen that sustaining high economic growth with flawed fiscal and monetary policies and two much dependence on external funds was extremely difficult.

Even a short lived domestic shock to the economies can pose difficulties for the banking sector the time has proved that their assessment was not totally off the road. b. Challenges faced by banking sector in the market. This sector is facing mainly two challenges for deposits Rationalizing the deposit rates Removing structural deficiencies This is major factor that has inhabited to reach out many potential depositors and to increase its share in development finance that is on the decrease. It has been assessed that the liquidity crunch is mainly due to low deposits, lower then the required level and this has been admitted by many senior bankers. According to available statistics, deposits of commercial banks increased to Rs 4.162 trillions by end September 2009 showing a Y-o-Y growth of 10 percent better than the growth of 9.15 percent a year before.

Further challenges c. Increase in Inflation Rate:According to an analysis, average deposit rate of 6.3 percent in September 2009 has decreased by 150 bps, from 7.8 percent during the corresponding month of last year. Hence slow down in economic growth has double digit the inflation during last 15 months. This inhibits its participation in development finance. d. Uncertainties resulting from social environment and environmental disasters:Prevailing uncertainty from law and order and war on terrorism also prove to be a contributing factor in slow growth of deposits. Uncertain environmental shocks such as rains, earth quakes, floods are a threat for financial institutions also. 5. Inability of sub sectors of economy to access financial institutions Sub sectors of economy such as SMEs, Agriculture, and infrastructure and housing, export refinancing and microfinance did not get access to finance from formal financial institutions. 6. Inhabiting full participation in Development finance

According to State bank NPLs to total loans remained 17.6 relating commercial banks and provision to NPLs remained 68.0 and a significant portion of NPLs from the bank of Punjab forced PACRA to revise its ranking because in the market, its harms its full participation in the development finance. Because of the development finance quarterly review released by SBP, share of banking sector during past one year has decreased, because of rise in inflation, NPLs, Power outages and credit crunch.

17. Conclusion The bank of Punjab is one of those banks that have got a strong brand image that is positioned in the minds of the Customers as one of the most reliable bank that have a strong confidence of its shareholders for capital injection and deposit base. It has introduced products with distinguishing features including deposit products and loan products. Through these products it has created a strong brand image that is positioned in the eyes of customers as a bank that can be relied and it introduce products having features equally distinguishing compared to other competing banks. In terms of its HR functions, The BOP has a very strong HR structure and they provide regular trainings to its employees that equip and improve their skills time to time. They are also provided opportunity to attend other training work shops as well. The internal control system is a firm rock standing before the erroneous transactions in BOP.

They take customers as first priority and customers complaints are solved as quickly as possible in this concern and their customer relation preserving strategy considers increasing value of customer for the bank. With respect to its various products that it provide then they are equally distinguishing in terms of its features such as they facilitate consumers to purchase homes, home appliances, purchase cars and motor bikes for their personal use.

It facilitates Farmers by financing them to fulfill their necessary needs purchasing seeds and urea for cultivating crops, purchasing pesticides, and purchasing tractors and livestocks etc. It offers very attractive saving rates that they consistently revise along with changing market conditions and consistently introduces schemes that are comparatively distinguishing with respect to its competing banks. It offers various deposit products to customers with features that are equally acceptable for its customers that have created a strong brand name image in the eyes of customers. The world of convenience at BOP offers money transfer at worldwide that is an easy, safe, reliable and fast way. All 273 branches of BOP are working with partners for payment of inward remittances from UAE, USA, Europe and other countries.

18. Recommendations
No doubt BOP is the one of leading commercial bank of Pakistan but here are some recommendations for the bank in order to improve the quality of its system as well as products and services. a. Provide relevant Training to achieve required results I agree with the views of group operation head Fawazi Khaja when we are required to get required results relevant training becomes a crucial factor. And hence training sessions are compulsory time to time but I share the views outsourcing becomes a crucial factor when someone wanted to manage training needs in the banks. Hence I like to recommend BOP to avail their outsourcing options regarding their training needs.

b. Continuous improvement in quality of products and services It is very crucial to ascertain how our brand name image is positioned in the minds of the stakeholders and hence this becomes a crucial factor that how much our signature carries weight, BOP should strive more and more in order to strengthen credibility of their signature. Hence it becomes crucial how the brand name of BOP is positioned in the minds of Customers and this can be achieved through a better quality of products and services. It also includes credibility of its ability of restoring from various crises that it may have to experience.

This will strengthen more and more the brand name image of BOP especially in the eyes of its major shareholders. In terms of products and services the quality of product and services will further improve brand name image in the minds of its stakeholders specially its customers. c. An effective communication system Communication process has assumed a lot importance in the workplace. And effective communication can ensure better understanding of the responsibilities in workplace. Especially top down communication assumes a lot importance when the companies have to ensure a transparent flow of information from boss to subordinates. When Employees has a better understanding of guidelines and responsibilities, they will be able to perform their roles in effective manner. Hence employees will be able to understand what is exactly expected of them and they will be able to improve their grades when they are appraised.

d. Teamwork to achieve shared Goals A good coordination among the employees can ensure a good teamwork during the work place hence this becomes a very key factor that ensures that every body know their tasks and collective wisdom and brainstorming can ensure a collective teamwork when they have to achieve shared organizational goal.

References Annual Report 2008(Provided by BOP Jampur branch) Newsletter BOP Issue 3 January-March 2010 Newsletter BOP issue 4 April-June, 2010 www.pacra.com www.bop.com.pk www.ibp.org.pk Oral information collected through questionnaires and interviews. Information Provided by: Mr.Muhammad Saleem Qureshi ( Branch Manager) Mr. Faisal Aziz Mazari (RM). MR.Waseem ullah (OG 3) Mian Irfan (OG 3) Virtual University HRM Handouts MGT501 by Dr. Mukhtiar Ahmed