CHAPTER 1 Introduction to the Report

1.1. Purpose of Study It is admitted fact that practical knowledge and the experience has no mach. being a student of BBA (Bachelor of Business Administration) I have completed 8 semesters in campus through rigorous academic training where the education is imparted in theoretical ways supplemented by presentations, seminars, class lectures etc but still class room does not give that exposure to the students unless they are put in the environment where they can see the things practically. COMSATS Institute of Information Technology has its unique characteristics in the provision of such opportunities regarding practical exposure in the grooming of students. To give more exposure to the students of BBA and MBA final semester students are put in various organizations public and private for the practical training. Theoretical academics with in the campus are a micro environment which does not give the academic worth and exposure of the practical knowledge to the students. They must have the awareness of the macro environment. For this purpose every student of the BBA is put for 6 to 8 weeks in the organization out side of the campus where students apply their theoretical knowledge of their specialization. This practical training is called internship .In the same line I opted to pursue my internship at National bank of Pakistan Mandian branch where I spent 6 weeks to apply my specialized field HRM, where I gone through the 2 aspects of my specialization: 1. To find out the coherence between general HRM practices what we studied in the course of our studies and the HR practices adopted by the National bank of Pakistan. 2. And to put my self as a professional in the applied macro environment. Although NBP Mandian Branch is a small micro unit of the big national bank but still what I observed and analyzed I am presenting this in the form of report. 1

1.2 Objectives of the internship: Objectives of my report are broken into two dimensions. Academically: To analyze HR practices in the market what we have studied during our class chunks. Fulfillment of the degree requirement To find out that what are the HR practices are adopted by the bank. To recommend what ought to be! Professionally: How will I behave in a practical environment different to the theoretical environment at the institute. 1.3 Scope of the study: Scope of my study is confined to achieve my objectives mentioned above. National bank of Pakistan mandian branch is a very small unit of big bank and it is performing the functions of operations only that is why most of the information available here are absolutely operational and not strategic which has mad the scope of study narrow. However with the help of available data gathering techniques I have been able to present the SWOT and HR analysis of this bank. 1.4 Limitations of the study: Major limitation of my study is that there is no specific department or division of HR in this branch level entity and NBP Mandian branch does not have any role in the policy making or policy applications and person leading the branch has the role of operations management neither he has any role in the decision making .So I had a very little provision to get the information regarding HR practices which are performed by the head office. The second thing is that there is no secondary data regarding the HR practices is available. The only document at the regional level HR manual which is also not a public document .I had to use my expertise to collect the information through various formal and informal sources. The other thing is bank staff put the internees on their routine affairs irrespective of their specialization. Bank is little coherent with my objectives.

1.5 Benefits of the study: Although every practical training is an integral part of the professional life of the student and it is a positive increment to the economic worth of the professional. First this study has provided me the opportunity to see the things in real world where I could apply my theoretical knowledge. I have found and learned many new things which I could not get in the course of my studies .i.e. peer interaction, professionalism, the world of corporate, professional ethics, communication, time commitment, tolerance and personality presentation. Secondly thing is that this study will pave the path for the coming students to look into broader aspect of this study. Thirdly this study will also provide the help to the policy and decision makers. 1.6 Methodology: Most of the HR practices in the national bank are not explicit and are not available in the documentation r any other secondary data. Thats why I had to rely on most of the primary data; however great care, authenticy, correctness and skill were taken in to consideration during the collection of primary data. My methodology comprised on the following manner. Complete study of the literature regarding HR general / international and local practices in various organizations. Various sources of the data collection

1.6.1 Primary data: To arrive at exact and concrete information. Briefing by the HR manager, Regional Manager and the other staff of the main branch Abbottabad. Personal observations during my training. Judgments. Interviews with the high-ups of the national bank i.e. with branch mangers and regional managers as well.

 1.7.

Discussions Telephonic information.

1.6.2 Secondary Data: Already published data available in the bank. NBP annual report NBP manual Advertisements Past internship reports Google search engine Magazines News letter Research reports Newspapers State bank of Pakistan Sidhat Haider Murshid consultants reports. Scheme of the Report Chapter one gives brief introduction of internship report, its purpose, scope, methodology and limitations of study. Second chapter gives introduction, historical background, functions, corporate profile, organizational structure, financial information and services etc of National Bank. Third Chapter has basics of management, functional motivation, maintenance, development function, and general administration. Fourth Chapter encompasses analysis of the organization. Fifth Chapter - in which conclusion of the report and some helpful recommendations have been made.

Chapter 2 Introduction to the Organization

2.1 Historical Background National Bank of Pakistan was established on November 9, 1949 as a result of dead lock with India and the devaluation of Indian rupee where Pakistan much to India and British consternation did not follow suit. The purpose of establishing the bank was to provide much needed financing to the, agricultural sector, particularly to facilitate the badly hit jute trade. The bank than went to become the sole agent of the State Bank of Pakistan for handling provincial and federal government receipts and payments. The bank commenced its operations from November 20, 1949 at six important jute centers in the then East Pakistan and directed its resources in financing of jute crop. National bank of Pakistan was basically established for reducing the difficulties of East Pakistan farmers engaged in jute and patsen after mass migration of community from East and West Pakistan to India . The bank provides all sorts of banking services to the government and private sectors. It acts as agent of central bank wherever the SBP does not have its own branches. The bank schedules commercial bank and its principally engaged in the business of banking as defined in the banking companies ordinance 1962. Before re-structuring in 2002, National Bank of Pakistan with its Head Office, at Karachi operates through 9 Regional Headquarters at Lahore, Karachi, Hyderabad, Quetta, Peshawar, Multan, Muzafarabad, Faisalabad and Islamabad. In the year 2002, to improve its customer focus, reduced decision-making layers restructured its entire command and control system in business and operational spheres Zones and Audit Offices, eliminated and total number of regions enhanced from 9 to 29 across the country. A new matrix structure has been introduced with the objective, to separate the front office and back offices, to improve the good governance and enhance the internal control.

National Bank of Pakistan maintains its position as Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices. Table 2.1

Table 2.2:

Table 2.3:

2.1.1

Groups and Departments of National Bank of Pakistan: NBP also put in place the rationalization program by staff reduction and Branch closures to ensure optimum efficiency in staff levels while balancing the benefits 7

of technology with the branch restructured network. Head Office structure comprises of following groups and department. 1. Operation Group 2. Corporate and investment Banking Group 3. Special Assets Management Group 4. Commercial and Retail Banking Group 5. Audit and Inspection Group 6. Overseas Coordination and Management Group 7. Risk Management Group 8. Treasury Management Group 9. I.T. Planning and Implementation Group 10. Human Resources and Administration Group 11. Compliance Group 12. Organization Development and Training Group 2.1.2 Products of National Bank of Pakistan: National Bank of Pakistan is the premier commercial institution of Pakistan cater the large diversified customer base of 9.009 million the biggest figure in the country and conduct the agency function of State Bank of Pakistan in addition to provision of other financial and allied services, these includes; National Bank of Pakistan is at the forefront of international banking in Pakistan which is proven by the fact that NBP has its branches in the entire major financial capitals of the world. Additionally, they have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is:

To effectively manage NBPs exposure to foreign and domestic correspondence. Manage the monetary aspect of NBPs relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the banks profitability.

Generation of incremental trade-finance business and revenues.

NBP offers:

The lowest rates on exports and other international banking products. Access to different local commercial banks in international banking. Deposit Banking Financing and credit Remittance facilities Collection Government Receipts and Payment Sale and Purchase of Government Securities, Bonds and Other certificates Foreign Exchange business Safe Custody, Safe Deposits Services and Safe Deposit Lockers Hajji facilities Utility bills Investment advice and other services Special deposits products/ schemes Pak rupee Travelers cheques

2.2

Corporate Profile Syed Ali Raza (Chairman & President) Dr. Waqar Masood Khan Sikandar Hayat Jamali Azam Faruque Ibrar A.Mumtaz Mian Kausar Hameed Sikandar Hayat Jamali Azam Faruque Ibrar A.Mumtaz M. Yousuf Adil Saleem & Co. Chartered Accountants

Board of Directors

Audit Committee Auditors

Legal Advisors Registered & Head Office Registrars & Share Registration Office

Ford Rhodes Sidat Hyder & Co. Chartered Accountants Mandviwala & Zafar Advocates & Legal Consultants NBP Building I.I. Chundrigar Road, Karachi, Pakistan THK Associates (Pvt.) Ltd Shares Department, Ground Floor, State Life Building# 3 DR. Ziauddin Ahmed Road, Karachi

2.3

General Information: National bank of Pakistan has a network of 1445 domestic branches, 4 subsidiaries, 23 overseas branches, 4 representative offices, one joint venture and one subsidiary (overseas) all the world .The local branches are controlled through 29 regional offices and overseas are managed through 4 overseas regional offices .It is the largest contributory agent of government and semi government requirements .NBP provides wide range of services, including collection of taxes and deliveries of salaries, pension to public sector employees. It has lowest rates on exports and other borrowings .NBP not only enjoys a unique position in the banking sector Pakistan but also in the global banking and the financial sector.

2.3.1

Awards and Recognitions: National bank of Pakistan has been included in the top ten giant banks of the world. It is the only domestic bank of the country, which has been awarded The Best Domestic bank consecutively in 2003 and 2004 by year renowned journal The Banker UK .It is also the only domestic bank of the country, which has completed its operational arrangements with western union, which has setup 244 centers in 113 cities/towns with e-remittance in the far flung areas of the country. National Bank of Pakistan is also the first bank which started Foreign Exchange Co in order to facilitate the general masses, regularize the inflow of the foreign money and control; the undesirable blackmailing of the private exchange companies in the country

10

The JCR_VIC Credit Rating agency, as affiliate of Japans credit agency has awarded Credit Rating AAA rating on September 20, 2002 which is more than stable in whole banking industry of Pakistan.

2.3.2

Network of National Bank of Pakistan: NBP, in its domestic operations has a total network of 1189 domestic branches, 29 Regional Offices, along with 9 Regional Audit Offices and 6 local subsidiaries including: 1-NBP Mudaraba Management Company 2-National Capital Limited 3-NBP Exchange Company 4-Taurus Securities Limited 5-National Agriculture & Storage Company Limited 6-Cast-N link Products

11

SNBP, overseas operation comprises 18 overseas branches, 5 representative offices, one international subsidiary bank of NBP in Almatay and one Joint Venture with the United Kingdom. NBP with its commitment to invest in development of the Bank's I.T infrastructure have now developed on line branches with modern I.T including Satellite excess, expended ATMs network and Computer Centers managed by highly professional bankers. 2.4 Organizational Structure: As stated before, a Board of Directors consisting of one President, 4 directors from NBP one from Pakistan Banking Council, one from Ministry of Finance and an additional one who is the secretary of the board manages NBP. Hence the board of directors is an 8member team, which manages the overall operations of the bank. Under the board of directors is the executives committee consisting of 7 members including the president/chairman of NBP and the Secretary. These members of the Executive Committee, except Secretary, are in-charge of many divisions; these members are all Senior Executive Vice Presidents (SEVP). There are 20 divisions, which have their own heads who are Senior Executive Vice Presidents (SEVP), Executive Vice Presidents (SVP) or Senior Vice Presidents (SVP). The SVEP of international division manages the overseas filed operations.

Every province has a Provincial Chief, usually an SEVP, who overlooks the operations of NBP in that particular province. The general managers are responsible for either a number of regional areas or in-charge of various provincial departments such as Administration, Recovery, General inspection, Loan etc. The duty of general managers depends upon the complexity and extensiveness of the field operations in the province. Below the general manager are the circle executives who are senior vice president (SVP) or Vice-Presidents (VP). The circle executives are in-charge of geographical circle areas such as Islamabad circle, Peshawar north circle etc. In each circle area, there are a number

12

of zones such as Peshawar Cantt Zone etc. There is Zonal Head for every Zone who is a Vice President (VP) or Additional Assistant Vice President (AVP).In each Zone; there are a number of bank branches, which are managed by branch managers who are Grade-1or 2 officers. In each branch, in turn, there are a number of graded officers and non-graded employees.

13

Figure 2.1 Organizational structure

President & Chairman President Secretariat Board of Director Secretariat
Corporate & Investment Banking Group Commercial & Retail Banking Group Operations Group Audit & Inspection Group Compliance Group Financial Control Division
Employees Benefits, Disbursements & Trustee Division

Special Assets Management Group Organization Development & Training group Overseas Co-Ordination & Management Group Information Technology Group Risk Management Group Treasury Management Group Human Resources Management & Admin Group

Source: Annual Report 2006 14

Figure 2.2 Corporate & Investment Banking Group

Corporate & Investment Banking Group

Corporate Banking (North) Lahore

Investment Banking

Corporate banking (south) Karachi

Source: Annual Report 2006

Figure 2.3: Commercial & Retail Banking Group

Commercial & Retail Banking Group

Agriculture Finance

Commercial Banking

Product Policy

Retail Banking

Source: Annual Report 2006

15

Figure2.4: Operations Group

Operations Group

Customer services & govt. Business

Logistic Support & Security

Treasury Settlement

Construction & Maintenance

Inter Branch Reconciliation (IBR)

Source: Annual Report 2006

Figure2.5 Audit & Inspection Group

Audit & Inspection Group

Admin. (A&IG)

Internal Audit & Inspection

System & Secretarial Support

EDPA&A

Monitoring & Evaluation

Area Audit Offices

Source: Annual Report 2006 16

Figure 2.6: Financial Control Division

Financial Control Division

Financial Control

Taxation

Equity & Investment

Source: Annual Report 2006

Figure2.7: Employees Benefits, Disbursement & Trustee Division

Employees Benefits, Disbursements & Trustee Division

Employees Benefits

Payments

Trustee Business Source: Annual Report 2006

17

Figure2.8: Special Assets Management Group

Special Assets Management Group

Karachi Office

Lahore Office

Regional SAM Offices

Source: Annual Report 2006

Figure2.9: Organization Development & Training Group

Organization Development & Training Group

Staff Colleges:

Islamabad Peshawar Lahore Karachi

Source: Annual Report 2006

18

Figure2.10: Overseas Co-Ordination & Management Group

Overseas CoOrdination & Management Group

Funds Management

F. I. Business

Sports

Publicity & Public Relations

Source: Annual Report 2006 Figure2.11: Information Technology Group

Information Technology Group

Admin. (IT)

System Development

Its Operations

Source: Annual Report 2006

19

Figure2.12: Risk Management Group

Risk Management Group

Policy & Procedure

RMG South & north (Domestic & Overseas)

Loans Examination

Financial Institutions

Industry Research & Analysis

Economic Research

Source: Annual Report 2006 Figure2.13: Treasury Management Group

Treasury Management Group

Money Market Securities

Corporate Treasury

Foreign Exchange

Derivative & Structured Products

Source: Annual Report 2006

20

Figure 2.14: Human Resources Management and Administration Group

Human Resources Management & Admin. Group

Institutional Disciplinary

Staff Welfare Functions

Industrial Relations

Personnel Admin.

Legal Affairs

HR Policies & Projects

Source: Annual Report 2006

Figure 2.15: Regional Structure

Regional Management Team

Regional Business Chief

Regional Operational Chief

Regional risk Management Team

Regional Compliance Chief

Regional Human Resource Department

Source: Annual Report 2006

21

2.4.1 Introduction to NBP Mandian Mirpur Branch To provide the banking facility to peoples of Abbottabad National bank Mandian branch Abbottabad was established in 1952 at Pang per Road Abbottabad. Muhammad Mazaffar was the first manager of branch. National Mandian branch started its operations smoothly and profitable and with the passage of time management improved its efficiency and reputation. The branch is accessible to all remote villages and as well as the posh colonies of Abbottabad. The structure of National Bank Of Pakistan consist of a branch manager, remittances, clearing and verification, bills department and cash department. 2.4.1.1 Departmentalization The National Bank of Pakistan has number of interrelated departments that works together to achieve the specific goals and objectives of the organization. The NBP has built a hierarchical system that includes the sub departments. The NBPs exiting system includes following departments Cash department Deposits department Clearing department Advances department Remittances department Government department

2.5 Core values: 2.5.1Vision To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering.

22

2.5.2 Mission To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our core values. We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities. We shall work to Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders. We aim to be people who Care about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures of true success. We have confidence that tomorrow we will be

Leaders in our industry. An organization maintaining the trust of stakeholders. An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment What we look for when recruiting personnel:

Team players with excellent interpersonal skills Knowledge and use of information technology Strong analytical and problem solving skills

2.5.3 Objectives Main Objectives

23

1. To be a premier bank 2. Responsive to the need of third target customers 3. Recognized for consistently superior service quality and innovative products. 4. Delivering superior value of stakeholder. 5. Maintaining books of account without any errors and mistake. 6. Create friendly environment among the department and the employees. 7. High ethical and professional standards 8. Delivering quality service 9. Daily and monthly reports to the head office at proper time 10. Translating the spirit of Sharia into modern financial products and services. 11. Developing our operational infrastructure, system architecture and business strategies focused to customer needs, with which it endeavors to share our success. 12. Reflecting high standards of integrity, prosperity, goodwill and team work in conduct with in the organization and the marketplace. 13. Focusing on quality training and management development programmers as an equal opportunity employer. 2.6 Other Information:

2.6.1 Services The National Bank of Pakistan offers a wide range of services to its customers and recognizes the importance of efficient business delivery and providing timely solutions. Here is a list of services that NBP offers; Demand Drafts Swift System Letter of Credit Pay Order Mail Transfer Foreign Remittance

24

NIDA* Equity Investment Trade Finance Agriculture Finance Services Farm Credit Production Loans Medium term loans and Capital Expenditure Financing Loan Structuring and Syndication Cash Management Services

2.6.2 International Banking: The National Bank of Pakistan is another bank in Pakistan that has introduced international banking. Additionally, they have recently set up the Financial Institution Wing, which is placed under the Risk Management Group. The role of the Financial Institution Wing is:

To effectively manage NBPs exposure to foreign and domestic correspondence. Manage the monetary aspect of NBPs relationship with the correspondents to support trade, treasury and other key business areas, thereby contributing to the banks profitability

Generation of incremental trade-finance business and revenues NBP offers:

The lowest rates on exports and other international banking products Access to different local commercial banks in international banking

2.6.3 NBP Islamic Banking NBP is proud to expand its range of products and services to include Shariah Compliant Islamic Banking products, now available at our dedicated Islamic Banking Branch located at Cotton Exchange Building, I.I. Chundrigar Road, Karachi.

25

2.6.3.1 Deposit Schemes Deposit Schemes being offered by NBPs Islamic Banking Branches would include the following:

Current Deposit Scheme Profit & Loss Sharing (PLS) Deposit Scheme

2.6.3.2 NBP Islamic Banking - Financing Commercial and Corporate customers requiring financing will have the following financing facilities available to them to meet their requirements: Murabaha Murabaha Facility Ijarah (Leasing)

2.6.4 National Bank of Pakistans branches: 2.6.4.1 Domestic Branches: Here is a list of the banks locations in Pakistan accordance to each province or territory;

Sind: Dadu, Sanghar, Hyderabad, Jacobabad, Shikarpur, Karachi, Larkana, Mirpurkhas, Badin, Nawabshah, Sukkur, Khairpur, Tharparkar. Punjab: Bahawalpur, D.G. Khan, RYKhan, Faisalabad, Gujranwala, Sialkot, Narowal, Jhang, Jhelum, Gujrat, Chakwal, Darya Khan , Bhakkar, Lahore, Multan, Murree, Attock, Gilgit, Rawalpindi, Sahiwal, Sargodha, Sheikhupura.

NWFP: Abbottabad, Mansehra, Bannu, D.I. Khan, Kohat, Mingora, Mardan, Peshawar. Baluchistan: Quetta, Azad Kashmir: Muzaffarabad, Mirpur.

26

2.6.4.2 International Branches:

NBP also has branches in USA, Canada, Germany, France, Bahrain, Egypt, Bangladesh, Hong Kong, Japan, South Korea, and The Peoples Republic of China, Afghanistan, Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan and Azerbaijan.

27

Chapter 3 Human Resource Management

3.1 Basics of Management 3.1.1 Human Resource Policies & Practices Mission Statement: To standardize HR policies and procedure for dissemination to all bank office in manner and form that could ensure uniformity in their applications and practices. What we look for when recruiting personnel: Team players with excellent interpersonal skills Knowledge and use of information technology Strong analytical and problem solving skills Excellent written and verbal communication skills in English Objectives: To undertake climate survey through out the bank. To introduce new HR policies. To implement talent pool scheme. Computerization of personal data duly verified by 100%. Achievements: The following policies have been implemented by the board Individual award policy. Transfers/posting policy. Policy for employment of disabled persons.

28

Employment of children of employee, who died while on duty. Promotion policy 2007. NBP talent pool scheme 2007 has been successfully implemented. The objective of placement of right job has been achieved.

Number of employees applied in the scheme (815). Number of employees qualified (224). Percentage of employees selected (27.48%). NBP talent pool 2007 Implementation status.

Number of employees relocated (133). Number of employees continuing at same place (53). Number of employees deceased (1). Number of employees Resigned (1). Number of employees dropped from the scheme (13). Number of employees waiting for placements (38). Decision for placement of above (38) employees is pending is due to finalization of posting of RMTs.

1. Climate survey conducted through out the bank. 2. HR convention on 29.01.2007 on the theme Innovation, customer satisfaction and just do IT attended by all general managers (HRM), wing heads and group chief, HRM and a group, HO for evaluating our performance and setting future objectives and goals of HR. 3.1.2 Job Description

29

A job description is a list of the general tasks, or functions, and responsibilities of a position. Typically, it also includes to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc. A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis looks at the areas of knowledge and skills needed by the job. Note that a role is the set of responsibilities or expected results associated with a job. A job usually includes several roles. Job description is a written statement that defines the duties, relationships and results expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes is a written statement that defines the duties, relationships and results expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes

Job Title Date Title of immediate supervisor Statement of the Purpose of the Job Primary Responsibilities List of Typical Duties and Responsibilities General Information related to the job training requirements tool use transportation

Signature of the person who has prepared the job description 3.1.3 Annual Job Objective: The in-house development of Annual Job Objective (AJO) is the priority project on the agenda. The development and subsequent implementation of this project

30

can only be achieved through team effort and ownership at grass-root level. AJO will assist the Management in enforcing principles of merit, accountability, justice and transparency its core benefits are: Ensuring enhanced individual performance Monitoring and measuring of achievements Identifying both high and low performers Rewarding high performers Career planning of employees Placement of right person on the right job Development of need based training system Improving job satisfaction, motivation and employee loyalty To enable us to make the AJO exercise meaningful, the job descriptions for all positions will have to be prepared, such as: Regional Business Chief Regional Operations Chief Regional Risk Management Chief Regional Compliance Chief Branch Managers Branch Operations Managers Credit Officers/Managers Branch Compliance Officers/Managers Simultaneously, job description for all positions in the Head \Officer will also be prepared.

31

In the light of Job Descriptions, job objectives for Executives/Officers holding different positions in the field as well as at Head Office are to be prepared. The above exercise will be an integral part for considering future reward/promotions. With the implementation of the above system, NBP will have significant improvements in performance and ensure enhancements in job satisfaction and employee motivation.

32

National Bank of Pakistan

Job description Date_____________ Job title________________________________________________________ Job location________________________________Job Grade__________ Reporting to: Name__________________________________________Grade Designation: _______________________________________ Job summary ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ______________ Duties and responsibilities: 1.___________________________________________________________________ 2.___________________________________________________________________ 3.___________________________________________________________________ 4.___________________________________________________________________ 5.___________________________________________________________________ 6.___________________________________________________________________ 7.___________________________________________________________________ 8.___________________________________________________________________ 9.___________________________________________________________________ 10.__________________________________________________________________ _____________

___________________ _____________________ Signature (By the person for whom the supervisor) Job description is prepared) Signature (By the immediate

33

______________________ Countersigned by Group Chief/RBC/ROC Date: ___________ 3.1.4 Job specification: Definition Derived from job analysis, it is a statement of employee characteristics and qualifications required for satisfactory performance of defined duties and tasks comprising a specific job or function. Job Specification is an analysis of the kind of person it takes to do the job, that is to say, it lists the qualifications. Normally, this would include is an analysis of the kind of person it takes to do the job, that is to say, it lists the qualifications. Typically this would include

Degree of education Desirable amount of previous experience in similar work Specific Skills required Health Considerations HR department state the acceptable requirements that candidate must possess to perform the job. Applicant knowledge, skills, education, experience, abilities and certificates are checked by Human Resource Department.

3.1.4.1 Example of job specification requirements: MANAGER ACCOUNTS (OG-4) JOB QUALIFICATION EDUCATION: Masters Qualification in Accounting, Commerce, Business Administration (Finance) and Economics etc. EXPERIENCE: At least 07 years experience (with 03 years in supervisory capacity) in Commercial Banking/Foreign Exchange Operations. Candidates who have 34

completed DAIBP with strong computer skills (Microsoft Office) will be preferred. COMPENSATION PACKAGE * Negotiable monthly monetized salary in the salary scale of OG-4(Rs.50,000 to Rs. 150,000) & for OG-5 (Rs.68,000 to Rs. 180,000) in commensuration with the experience and qualification of the candidate. * Free medical facility for self and dependent family members as per Bank's rules. * Provident Fund, Gratuity, Leave Fare Assistance, Staff Loans other facilities as per Bank's Rules. AGE: Maximum 45 years for OG-5 & 40 years for OG-4 position on the last date of submission of applications 3.1.5 Job evaluation: Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs. The two most common methods of job evaluation that have been used are first, whole job ranking, where jobs are taken as a whole and ranked against each other. The second method is one of awarding points for various aspects of the job. In the points system various aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded - the higher the educational requirements of the job the higher the points scored. The most well known points scheme was introduced by Hay management consultants in 1951. This scheme evaluates job responsibilities in the light of three major factors - know how, problem solving and accountability. Jobs are evaluated by common job grades that are based on skills, knowledge and abilities to perform a job. Each department head writes annual confidential report about subordinate staff in the rating of poor, good, excellent, outstanding but now a new procedure is introduced which contains only rating like good, average, below average.

35

3.2 Recruitment and Selection The head office by the department of HRM does recruitment and selection. The concerned department will finally sort out application received after initial scrutiny by the HR department, which will be based on the job description and job specification already provided by the departments. HR department will only arrange tests and interviews of clearly suitable candidates. Recruitment can be defined as the process of discovering potential candidates for actual or anticipated organizational vacancies. Every organization has its own recruitment policy. 3.2.1 Recruitment policy of National bank of Pakistan: According to the recruitment policy of NBP, the requirements are: Candidate must be a citizen of Pakistan He/She must be a business graduate, and He/She should have attained the age of 18 years but not exceeded the age of 35 years.

3.2.2 Procedure There are certain steps involved in the procedure in recruiting to NBP. They are: Applications are invited from candidates on prescribed forms against the vacant posts advertised in the newspapers. Application forms received are scrutinized and eligible candidates are called for written test. Test is conducted in four subjects, i.e. English, Computer, General Knowledge and Mathematics. Candidates who qualify the written test are called for interview. Interviews are held at GM office. After that the candidates have to undergo a medical check up by the prescribed doctor. Appointment letters are sent to the selected candidates, who have to present themselves before the Head Office for signing the following documents. 1. Bank Secrecy Bond

36

2. Security Bond 3. Service Agreement Bond Appointed candidates are kept on probation for 9 months. They are sent for a 9months pre-service training to the Staff College. 3.2.3 Conditions of recruitment Candidates must be domiciled in Pakistan and Azad Jammu and Kashmir. The minimal educational qualifications for recruitment to post in category 1(except chief cashiers) shall be bachelors degree from a university recognized by the Federal Government. This qualification cannot be waived except the competent authority. Other qualification necessary for recruitment to posts in category 1 are as follows Officer Grade-111 supervisory A pass in DAIBP part 1& at least 5 year experience in

capacity in a scheduled bank. A pass in DAIBP Part 11 & at least five year experience as an A pass in DAIBP part 11 & at least 15 years experience as an

Officer Grade-11 Officer Grade-1 officer in

officer in a 1st class scheduled bank. a 1st class scheduled bank. experience as an

Senior Grade 111 A pass in DAIBP Part 11 & at least 20 year

officer and 10 year in a senior position in a 1st class scheduled bank. Minimum educational qualifications and experience for the post in category 11 & 111 are different for different positions like Matric for assistant, cashier, and others and intermediate and other diplomas related to their jobs. 3.2.4 Selection Process In selection process they identify the most suitable applicants and persuade them to accept a position in the organization. When the candidates are appointed then they pass through Written tests Interviews

37

Probation: A candidate selected for appointment is on the probation. To check that he /she is able to perform that job. If they are unable to adapt to that environment then their probation period is extended. Dispensing with services/offering appointment in a lower grade. If still not fit then terminated. During the probation they are again interviewed in case of promotion whether they are able to perform the new tasks or not. If they have the capability to perform then promoted.

3.2.5 Employee orientation After hiring the employees in NBP they are oriented to the organization both formally and informally. They are oriented both to the general organizations members and organizational policies and procedures and also to their departments. Employees are oriented to NBP by: Welcome party Dinners by the organization in which they are informally introduced to their organization. After that they are sent to the staff colleges in which they got training and also come to know about the organizational culture. Provided with organizational charts. When the training finishes then farewell is conducted. Executives are sent to the departments to check what is actually happening in every job. New hires along with the senior members visit the different offices and in such a way they are introduced to their colleagues. They are also provided with telephone #, ID cards, telephone directory and others Employees are assigned with a person (mentor), to assist them. Provide the new hires a copy of the annual report

3.2.5.1 Role of HRM in Orientation Human resource department orient new comers to broad organizational issues and fringe benefits.

38

Provide them with the explanation of following practices and procedures they use in the organization. 1. 2. 3. 4. 5. 6. Hours of work and attendance policy Overtimes rule Employees benefits for which they are eligible: Medical insurance Sick leave Vacations Disciplinary procedures and general conduct Provident and pension funds Promotions The organization have a development group called organizational development and training group. Four staff colleges are operating under this group in Lahore, Karachi, Islamabad and Peshawar. The training is mostly carried through seminars workshops and mostly on the job training. At the time of induction of the employee he is given the initial training at Institute of Banking Pakistan (IBP) after that they are posted in the field on their respective jobs. The effectiveness of the training is viewed in the light of their performance and if found not up to the mark, they are again sent to the institute for further training. The employees are encouraged to improve their education in order to enhance their careers. To meet the challenges of position of NBP as a market leader, training is seen as a critical success factor. Training has been restructured to make it more need based and aligned with the corporate vision of inculcating customer focus and developing core competencies under program "Gearing up for Excellence ". A strategic training management plan was develop _ keeping in view the stakeholders' expectation. Training is a process of continuous improvement, because of which significant results have been achieved thus far. 3.3.1 Pay Package-Grant of Incentives One-time cash shall be paid to those NBP Employees who improve their 39

3.3 The Development Function

educational qualification and the degree obtained is from educational institutions approved by the HEC of Pakistan. On passing DAIBP Part-II an employee in clerical grade will be promoted as Officer Grade-III The cash award shall be as under. B.A M.A B.Com/B.C.S/B.B.A M.Com/.M.C.S/M.B.A DAIBP Part-I DAIBP Part-II Rs. 10,000/. Rs. 20,000/. Rs. 20,000/. Rs 30,000/ Rs. 20,000/. Rs. 30,000/.

3.3.2 Measures for Improving the Result of Banking Diploma Examination With a view to improve the low pass percentage in the Banking Diploma Examination, it has been decided to take following measures: i. Employees appearing in IBP Examination are allowed to attend classes arranged by the IBP in Karachi and principle cities. ii. The bank shall reimburse to its employees 50% course fee (once only) and in case they pass the examination the remaining 50% of fee may also be reimbursed. iii. Staff colleges may hold special evening classes for IBP Examination for prospective examinees. 3.4 Motivation 3.4.1 Performance Management System of the Organization NBP management believes that rewarding individuals for their contributions to the business encourage employees to seek their highest level of productivity, promotions and provide the company with the best return on its investment. This belief in merit need to be build and reflected in our compensation and promotion policy.

40

A complete new performance management program based on performance appraisal system has been designed in place of current ACR system and will soon be rolled out for measuring performance for the year. 3.4.1.1 Employee Evaluation Program The execution of the merit system is dependent on the yearly evaluation of the employees job performance, which is the measurement of the year net contribution to the business. As employee evaluation is basis of rewarding for the performance through its pay and promotion programs on merit. Much effort is placed to achieve a reliable and fair method of defining and measuring performance. EEP aligns with the matrix structure of NBP to recognize importance of values of accountability and coordination through soled line reporting and doted line reporting respectively. For continuity and learning process for future, EEP is designed on basic premise of the performance appraisal system, which will meet the immediate organizational need of merit and career development for the employees. 3.4.1.2 Grading Plan of EEP on Bell Curve Distribution This is a method of comparing employees performance to one another .As the name normal distribution or Bell curve Distribution implies, the overall distribution of ratings is to accommodate all into a normal, or bell shaped curve, under the assumption that a relatively small portion of employees is truly outstanding, a relatively small portion is unsatisfactory and everybody else falls in between. Tables 3.1 Below illustrate this method for that five rating categories to be used. Performance Outstanding Very good Good Satisfactory Unsatisfactory Grades 10% 20% 50% 15% 5%

41

Figure 3.1 Grading Plan of EEP on Bell Curve Distribution

Grades
60% 50%

Grades

40% 30% 20% 1 0% 0% Outstanding Very good Good Satisfactory Unsatisfactory

Perform ance

3.4.1.3 Guidelines for Evaluating Managers Plan and review your own ratings for employees to align with the program Schedule meeting with employees. Notify of the meeting in advance Give the employee a copy of the completed appraisal form (ACR) and ask for a self-appraisement. Give end receive feedback. Summarize his strengths and areas of improvement Create and discuss the development program such as training rotation goals for future etc. 3.4.1.4 Promotions 1. The banking sector over the years has come under increasing pressure both in matters of recruitment and promotion. This has resulted in deterioration in quality of its staff, leading to impaired service to customers and lower profits. At present there is an air of despondency in banking circles, which can only be removed by fashioning objectives criteria and laying down the foundations of just structures.

42

2. It is therefore, proposed that a sound basis be laid for recruitment of adequately qualified staff and at the same time opens channels for their future career, development commensurate with their qualifications, experience and performance. A commission for recruitment of staff on competitive basis for the government owned financial institutions has been established. It will hold annual examinations on all Pakistan bases to induct Grade-II officers in these institutions. 3. Revised criteria for promotion are also being laid down. In the given milieu it may not be easy to achieve total objectivity .But even if substantial measure of objectivity realized it should be a major step forward. This structure will be difficult to violate. Gradually good working on inventions should take root and, it is hoped only the best would be able to rise through the ranks of the banking sector. 4. This is all, more relevant now that the banks are being encouraged to exercise autonomy in their functioning. The institution as well as the employees should benefit by evaluating performance and assisting the advancement of their staff. They all should place particular emphasis on evaluation, because it is professional performance that is going to determine the work environment the work environment of the banks and affect their efficiency and output. 3.4.1.5. (A) For Officers and Executive (Up to SEVPS) 1. Eligibility Criteria

For promotion from one grade to another minimum qualifying period shall stand at three years minimum service in the grade for all cadres and grades of officers/executives. Henceforth, there will be no condition for minimum number of years of service in the bank as qualifying criterion. However, it does not imply that those who meet the eligibility criteria become ipso facto promo table or shall necessarily be promoted. 2. Relaxations Criteria for Eligibility The conditions of the service I the grade shall be relaxed further in the following manner:

43

i.

For promotion from OG-III to OG-II to OG-I relaxation for one year and two years respectively shall be provided as under: One year relaxation for qualifying Pat-I of Banking Diploma (IBP-I) Two year relaxation for qualifying Pat-II of Banking Diploma (DAIBP)

3. i.

Outstanding Performance Criteria Not withstanding the above criteria those identified to demonstrate outstanding performance by their superiors may be considered for out of turn promotion on the recommendations of Group Chiefs / RCEs, Chief of Operations Group and Chief of Administration and Human Resources Group at the discretion of the Operations Committee.

ii.

Notwithstanding the above provisions, the operations Committee upon recommendation of the respective RCEs, ROCs and Group Chiefs will have the discretion to: a. Approve a performance bonus payment based on outstanding performance with or without promotion to any identified officer/executive on the basis of performance. b. Grant one time cash awards (to be called Spot award) to any officer/executives any time during the year for a work of extraordinary.

4.

Evaluation Formula The evaluation of overall performance for routine promotions will comprise the following elements: i. Educational qualification from recognized university any HEC (once in whole length of service) Max Marks a. b. Graduate Post-Graduate MBA, M.A, M.Com, MCS, MS Management 44 04 marks 05 marks

Or equivalent qualifications, CA, I CMA ii. Professional qualification (only once I whole length of service) DAIBP Part-II IBP Part-I 10 marks 05 marks

iii.

Performance Performance Evaluation Reports for the last years marks of 80 i-e 25 marks for each as per following rating criteria and additional marks for extraordinary performance during any one year of evaluation period. Grading a. b. c. d. e. f. g. Outstanding Very good Good Average Below average Poor Additional marks for Extraordinary performance during one year. (Grading as reflected in the Performance Evaluation Reports) iv. Skill Development Maximum 10 marks for skill development for the job being performed or being considered after promotion, through specialized professional courses. Seminars degrees, diplomas and certificates. v. Skill and Proficiency Demonstration Maximum 10 marks for extraordinary professional skill and leadership qualities demonstrated during period of evaluation. 12 06 00 00 05 Marks 25 15

45

3.4.1.6. (B) Promotion from Clerical to Officer GR-III i. Clerical staff who have completed 10 years service in the scale 6 and 7 may be promoted as officer Grade-III provided they are at-least matriculate, having satisfactory record of service and are not involved in any disciplinary/criminal case. One-year relaxation will be available to those who have pass part-I of IBP. ii. Clerical Staff who are DAIBP or have passed MBA from any university recognized by HEC will be promoted as officer Grade-III. iii. Clerical staff having three years service in clerical grade who have acquired degree of M.Com from a University recognized by HEC may be promoted as Officer Grade-III. iv. Clerical staff having 5 years service in clerical grade and have acquired any Masters Degree (other than at iii above) from a recognized university may be promoted to officer Grade-III. v. Promotion cases of clerical staff involved in any disciplinary/departmental or criminal proceedings shall not be considered till they are exonerated/acquitted of the charges. Promotion Committees (A) Committee At Circle Office Level

This committee will recommend the promotion of the officers up to Grade-I to the PHO, according to the vacancies available and prescribed criteria. This committee will comprise the following: i ii iii Circle Executive Concerned Zonal Head Circle Chief of inspection/Audit Chairman Member Member

46

(B)

Committee At PHO Level-

This committee will be competent to promote Officers up to grade I, who have been recommended by the committee at Circle Executive/General Managers office level according to the vacancies available and prescribed criteria. i. This committee will also recommend cases for promotion of Officers Grade-I up to senior Vice President to Head Office. ii. (C) i. This committee will comprise the following: Provincial chief Chairman

SEVP of personal/Admin. at Head Office Member Concerned Circle executive/GM Member

Promotion Committee No.1 For Head Office Personnel This committee will be competent to promote Officers from Grade III to

Grade I, who have been recommended by the Divisional Heads at Head Office. ii. This committee will also recommend cases for promotion of officers GradeI up to SVP to the committee at the Head Office level. iii. iv. This committee will consist of: Senior most SEVP SEVP if Personnel/Admin Chief of inspection/Audit Chairman Member Member

The president shall have the power to review the decisions of any of the Committees at the Circle of PHO level or of the Committee No. I at the Head Office. (D) Promotion Committee No-2 At Head Office Promotion from OG-I AVP and above

47

i.

This committee will consider all cases received from PHOs and decide the promotions from Officer Grade-I to SVP

ii.

This committee will also recommend to the Board of Directors, cases for promotion to the rank of EVPs and SEVPs. The board will consider those recommendations and decide to promotions from SVP to EVP and make its own recommendations to the inter-Bank Promotion Committee, for final approval of promotion from EVP to SEVP.

iii.

This committee will consists of the following: President All members of executive committee SEVP/Head of personnel/Admin division Factors considered in suitability for promotion. 1. Administrative ability effectiveness at supervisory level, leadership Chairman Members

quality initiative, and ability to create in the staff a sense of discipline, self confidence, commitment and motivation to achieve goals set out by bank. 2. 3. Ability to take prompt decisions and take responsibility. Reputation of integrity and moral rectitude. This include living within

known sources of income and non-involvement in any business dealings directly or indirectly. 4. Non-involvement whether direct or indirect in any fraud of forgery case

and freedom from responsibility for accumulation of bad debts or other losses incurred by the branch /area under the direct charge or functional control of the officer concerned. 5. time. Promotions from the rank of AVP and above will be linked with

completion of the courses prescribed by the Pakistan Banking Council from time t

48

3.5 Maintenance Function 3.5.1 Benefits Administration Following benefits are offered to employees 3.5.1.1 Encashment of Leave Preparatory To Retirement Subject to the decision of the competent authority, an employee will be entitled to avail leave preparatory to retirement or avail encashment of leave preparatory to retirement (on attaining the superannuating or on completion of 30 years qualifying service) This scheme will not affect the promotions of employees proceedings on LPR under the scheme in case they stand qualified to earn it on the basis of their performance. 3.5.1.2 Voluntary Handshake Scheme For employees to participate in the VHS the following amendments are in order and they are accordingly incorporated in the Scheme. i. Commutation of pension 100% pension commutation will be offered to employees who have completed 20 years or more of service as full and final settlement of pension as per the Banks pension rules. Employees who not have completed 20 years of service with the bank and are opting for VHS shall be paid 50% pension commutation. ii. Medical Benefits Employees who have completed 20 years of service will have the option of medical facilities. It should be clearly understood that there will be no further incentives/amendments in the VHS.

49

3.5.2 Pay Allowance and Other Benefits for Clerical and Non-Clerical Staff The Board of Directors of the Bank has been pleased to approve the revision of pay, allowances and other benefits of clerical and non-clerical staff. 1. Basic Pay Increase of 14% has been allowed as under: i. ii. @8% of Basic Pay @6% of Basic Pay All related allowances that are dependent on the basic pay will also be increased accordingly from the date of increase in Basic Pay. 2. 3. 4. Utility Allowance Conveyance Allowance Medical Allowance This allowance has been increased from 10% to 11% of the Basic Pay. The cost of 15 liters of petrol per month

Cost of medicine 10% of the Basic Pay. Fee of consultation and laboratory test on reimbursement basis has been enhanced as under: 6. Clerical Non-clerical Maternity Charges Maternity Charges for the delivery at home and hospital are as under: 7. Home Hospital Severe Winter Allowance Severe Winter Allowance at specified places, Rs 800/.per month. RS 5,000/. RS 7,000/. 8.33% of Basic Pay 8.33% of Basic Pay

50

8.

Hill Allowance Hill Allowance at the specified places RS 700/.per month.

9.

Education Allowance Education allowance as under subject to maximum of RS. 1750/. Per month without any restriction on the number of children for whom the Education allowance is claimed:

10.

Up to Matric For College For Professional /Technical Car Finance

RS 500/. Per child RS 700/. Per child RS 1000/. Per child

The employees availing the facility of the car financing @ 4% mark-up will now avail this facility as under: 11. Up to RS.80,000/-(Motor cycle limit) free of Mark-up Above RS.80000/-4% markup per annum. House Building Finance House building finance has been enhanced as under: Employees in Pay Scale No.1 to 3 Employees in Pay Scale No 4 to 7 RS. 425,000/. RS. 500.000/.

3.5.3 Pay, Allowances and Other Benefits for Executives & Officers 1. Conveyance Allowance AVP OG-I. OG-II VP 250 LITRES 200 LITRES 90 LITRES 80 LITRES

51

 1. 2.

OG-III

70 LITRES

Medical Allowance Cost of medicine(executives) Cost of medicine (officers) 7.5% of Basic Pay 10% of Basic Pay

Consultation (all Executives & officers) 5% of Basic Pay. Maternity Charges (UPTO GRADE I) 3. 4. 5. At home At hospital Teaching Allowance Car financing VP/AVP For all officers Education Allowance Education allowance has been allowed to executive and officers @ RS. 500/=per month on production of school, college/university fee receipt. 6. Hill Allowance Hill Allowance at the specified places has been allowed @ RS 700/= p.m 7. Funeral Charges Funeral Expenses to be paid to the heirs of deceased executives/officers @ RS 10,000/=. Suzuki Cultus(AC) Suzuki Alto (AC) RS.8, 000/. RS. 10,000/. 20% of Basic Pay.

3.5.3.1 Advance against Salary to Employees on Eid-Ul-Azha It has been decided to allow advance payment of 55%of one months revised basic pay to all permanent employees. 52

3.5.3.2 Advance against Salary to Employees on Eid-Ul-Fitr It has been decided to allow advance payment of 55% of one months revised basic pay to all permanent employees. 3.5.4 Benefits, Allowances, Incentives for Retired Employees Facilities to the Widow and Dependent Children Clerical/Non-Clerical Staff: Where by the post retirement medical facilities were extended to clerical/nonclerical staff of the bank. i. Wife and children of the deceased, whether they died in service after completing 25 years or after retirement (on completion of 25 years or on attaining the age of superannuation), will be entitled to medical facilities under the scheme. ii. The medical facility will be available to an employee, his wife and dependent children during the lifetime of the retired employee or his wife. Dependent children would mean un-married sons and daughters, if any, until they are married or attain the age of 21 years, whichever occurs earlier. Un-married sons and daughters below the age of 21 years, if employed/ self-employed and widowed daughters will not be covered under the scheme. 3.5.5 Leave Encashment As per existing rules, only employees are entitled for leave encashment benefits on their retirements, which have put in at least thirty years service. 3.5.6 Normal Retirement Benefits Employees who have completed 25 years of service under old retirement benefits will get Provident fund own and banks contribution and Gratuity @1/2 months basic pay for each completed year of service. 1) Under new retirement General Provident Fund contribution and 50% commutation of Gross Pension and payment of Pension on monthly basis. 3.5.7 General Administration 3.5.7.1 Occupational health and safety

53

In NBP there is no occupational health and safety. Employees are always overloaded with work and their offices are not designed under the concept of ergonomics. Most of the employees suffer from different problem due to extensive use of computers. 3.5.7.2 Employee privacy Senior officers monitor their employees by visiting their offices, not for the purpose to intervene in their personal issues but to check that whether they have performed the task that was given to them. And in banks everybody is overloaded with work and nobody can intervene in the personal matters of others. Now in NBP camera monitoring is done for security purposes. 3.5.7.3 Employee Disciplining All employees in NBP must follow these rules: Liability To Abide By Rules Every employee shall conform to and abide by these rules and shall observe, comply with and obey all orders by any person and persons under whose jurisdiction, superintendence or control he may, for the time being, is placed Other Obligations Of Employees Every employee shall serve the bank honestly and faithfully and shall maintain strict secrecy regarding the banks affairs and the affairs of its constituents. He shall use his utmost endeavors to promote the interests of the bank and shall show courtesy and attention in all transactions with Government, the Banks constituents and the public. Participation In Political Organization No employee shall be a member of a political party, take part in, subscribe in aid of, or assist in any way, any political movement in Pakistan or relating to the affairs of Pakistan. Even their family members are not allowed to take part in any such activity. Declaration Of Secrecy Every employee shall, before joining service, sign a declaration of secrecy. 54

Restriction On Borrowing Except with the permission of the competent authority, no employee shall incur an unsecured debt to an extent exceeding his emoluments of three months. Every employee incurring unsecured liabilities in excess of three months emoluments on 31st of December each year until the loan is repaid. Speculating In Stocks, Shares, Giving Of Guarantee No employee shall

borrow money from or in any way place himself under pecuniary obligation to a broker or money lender buy or sell stock, shares or securities of any description without funds to meet the full cost in the case of a purchase or script for delivery in the case of sale act as an agent of insurance company engage in any other commercial businesses Opening Of Account With Any Other Bank No employee shall, without the previous permission of the competent authority, open or maintain an account with any bank or banker of any description other than the bank.

Marriage With Foreign Nationals By Banks Employees An employee shall not marry or promise to marry any foreign national. Infringement Of Rules An employee guilty of infringing any of the provision of rules discussed above will render himself liable to disciplinary action including dismissal from services. Procedure for Disciplinary Actions When employees violate any rule then he is liable for disciplinary actions:

The competent authority subjects him to disciplinary action and appoints enquiry officer or enquiry committee to hold an enquiry in case. The competent authority may delegate the powers to issue charge sheet and to appoint enquiry officer or enquiry committee to a subordinate authority.

The enquiry officer or enquiry committee so constituted shall require the accused within a reasonable time, which shall not be less than 7 days and more than 14

55

days from the date charge sheet has been communicated to him, to put in a written defense and to state at the same time whether he desired to be heard in person The enquiry officer or enquiry committee, as the case may be, shall enquire into the charges and may examine such oral or documentary evidence in support of the charges or in defense of the accused as may be considered necessary and the accused shall be entitled to cross examine the witnesses against him Where the enquiry officer or enquiry committee, as the case may be, is satisfied that the accused is hampering or attempting to hamper the progress of the enquiry, he or it shall administer a warning, and if thereafter he or it is satisfied that the accused is acting in disregard to the warning, he or it shall record a finding to that effect and proceed to complete the enquiry in such a manner as he or it think best in the circumstances The report together with the employees statement shall be laid before the authority ordering the enquiry which shall consider the matter and award such punishment, as it deems proper, or otherwise it then present it to the competent authority with its recommendations. The decision of the competent authority shall be conveyed in writing to the concerned employee. The competent authority takes an explanation of the employee and award punishment forthwith. 3.5.7.3.1 Penalties and Punishments Without prejudices to the other provisions contained in these rules where an employee who commits breach of the regulations of the bank or of discipline or contravenes instructions/orders issued to him in connection with his official work or who displays negligence, inefficiency, or indolence or who knowingly does anything detrimental to the interest of the Bank or is in guilty of any other act of misconduct or insubordination of the competent authority may impose on him one or more of the following penalties a. Reprimand. b. Postponement or stoppage of increment or promotion. c. Forfeiture of pay for any period of unauthorized absence from duty.

56

d. Recovery from pay of the whole or part of any pecuniary loss caused to the bank by the employee. e. Degradation to a lower stage of pay in his grade or to a lower grade. f. The competent authority may, if it thinks fit, suspend the employee, pending enquiry, by order in writing. While under suspension the employee shall be entitled to full amount of his salary and all other benefits and facilities in addition to the house rent allowances/rent ceiling and the usual medical facilities. During the suspension the employee shall not leave the headquarters without the permission of the competent authority. g. After that is the termination of service. 3.5.7.4 UNIONS In NBP there are two unions: CBA (for clerical and non clerical staff ) Officer association (for officer) There are four region and each have sub units. Four regions are:1. Dera Ismail khan 2. Mardan and Swat 3. Abbottabad 4. Peshawar Union elections are conducted in which their representatives are elected. Every member is registered with Directorate of labor welfare (NWFP). 3.5.7.5 Communication Mechanism Communications and Reporting Relationships. There exists a properly defined financial and administrative power of various committees and key management personnel, which supports delegation of authority and accountability. Apart from this different branches of Bank are connected through intranets to share information and data. 3.5.7.6 International HRM

3.5.7.4.1 Registration

57

National bank of Pakistan has eighteen overseas branches, two subsidiaries, one joint venture and seven representative offices. They are all working under the Head Office NBP Pakistan. The clerical and non-clerical staff is hired locally while the officer level staff is sent from Pakistan. All the HR practices are conducted in accordance with the policies and practices of the respective countries. NBP has 18 overseas branches in the following countries.

USA Egypt Germany Bangladesh France Kyrgyzstan Hong Kong Japan Afghanistan Bahrain

(02 branches) (01 branch) (01 branch) (02 branches) (01 branch) (01 branch) (02 branches) (02 branches) (02 branches) (01 branch)

Turkmenistan (01 branch)

South Korea (01 branch)

3.6 HR analysis: The manpower resources in an entity is rightly characterized as the single most valuable asset that holds the key to either make, or break, the brands they

58

represent. Attracting and retaining quality people and motivating them to peak performance, are now the buzz words in corporate boardrooms and corridors as every organization competes for scarce talent. Regardless of size, spread, nature of business and geographical location, investment in human capital, is by far the most promising and rewarding avenue for modern day entrepreneurs. National Bank of Pakistan has an existing Human Resource development department, which operates to increase the existing skills of the people existing or coming in the organization, in order to achieve its objectives in a more efficient manner. NBP has devised two basic training techniques. First is related to the training and development of mid term plan, regarding new clients & middle level employees. Secondly, the training & development for long term plan, regarding the career development. NBP applies on-job and off-job strategies to train its employees (middle & higher level). NBP training & development academy advises Job rotation to ensure & facilitate the producing of all rounder.

Companies are faced with the daunting task of adopting a harmonious approach to people management on a global basis while respecting domestic and regional sensitivities. Acquisitions, mergers, and other forms of corporate restructuring and privatization inject new imperatives in human resource management prompted by the need for relocation and the shifting and creation of new job responsibilities. Availability of documented human resources policies and procedures facilitates the discharge of the HR function in an organization and serves as an important and useful tool in ensuring the presence of an effective HR culture but as for as National bank policy is concerned there is no well documented open to the public, often consultants are hired in determining their needs in this regard, and they help them to formulate and compile prescribed policy and procedures adapted to their specific needs. 59

This is a customary practice in Pakistan regarding the hr practices are performed not in the uniform pattern but on the contingency basis in most of the semi govt organization as national bank is! because there is no public document is available to the public to analyze the hr practices in national bank as the only one document that is hr manual which is a also a secret document. National bank is one of the clients of the Sidhat Murshad Associates who perform the hr functions for the national bank. So to analyze the hr practices I used the following sources Interviews from the high-up of the national bank. Advertisement available on the internet or any other print media. Through the HR policy of the consultant of the national bank i.e. siddat murshid. HR manual of the National bank. I will focus the national bank as a whole generally and the national bank mandian branch particularly. The organization where I was put for the internship was in the following structure. Manage, deputy manager, cashier. By looking through all these people there are five categories of the staff. Officers top management middle management lower staff, contract staff daily waged staff Adhoc staff.

60

Chapter 4 SWOT Analysis of NBP

It was a time when an individuals and organizations performed and achieved their objectives in the absolute term with limited exposure, narrow vision, limited access to the information and data and narrow market thereby they have no capability to evaluate their performance in the achieving of the objectives. But with the advent of new scientific techniques, quantification of the social aspects and shifting of simple management to management sciences, individuals and organizations are no more in the absolute environment .They can not survive unless they have the knowledge of itself and the surroundings. Now even a single individual can not grow academically and professionally if it does not make analysis of her and the competitors in the market. Today profit oriented or cost reducing organizations make their complete analysis for their survival otherwise they will be kicked out from the market , such kind of analysis is called SWOT analysis ,various firms use different kinds of techniques to make this analysis ,among which the popular one are : Demand forecasting Linear Programming Input-output analysis Game theory Econometric modeling Transportation Model etc

On the basis of "SWOT" analysis, one can analyze the present status and performance of an organization and can make conclusions and recommendations. The "SWOT" analysis consists of four letters that are S, W, and O & T, which stands for Strengths, Weaknesses, Opportunities and Threats respectively.

61

4.1 STRENGTHS 1. Oldest Institution: NBP is one of the oldest bank of Pakistan and first nationalized bank. Hence its customer base is strength from thus plus point as customers have more confidence in the bank. The additional value services as the privilege for the bank 2. Alternate Duties in SBP Absence The NBP performs additional service for its customers as well as the other bank customer in the absence of SBP. 3. More Deposit than Other Bank NBP has the relative competence in having more deposits than the other bank. This is because of the confidence the customers have in the bank. The bank being the privileged and oldest bank in banking sector of Pakistan enjoys this edge over others, lacking it. 4. Employee Benefits The employers at NBP are offered reasonable monetary benefit. Normally Two bonuses are given Eid-ul-fitar & Eid-ul-Azha. This serves as an additional benefit and competency for the bank and a source of motivation for the employees. 5. Broad Network The bank has another competency i.e. it has broad-bases network of branches throughout the country in high productive cities. The customers are provided services at their nearest possible place to confirm customers satisfied. 6. Nationalized Bank A nationalized bank has major advantage of getting the Government support readily and when ever needed as compared to the privatized banks. 7. Largest Branch Net Work The network of the branches of NBP is largest then any other bank inside the Pakistan 8. Strongest Capital Structure Large capital structure is the back bone of maintaing and conducting the operations.

62

9. Monopolistic hold The NBP have monopolistic hold by capturing the govt. accounts and maintaining the confidence of the individuals by govt. support. 10. Public Confidence Being considered to be a Govt. bank the public have much confidence in NBP then any other national or multinational bank. 11. Experience of operation, as the bank was established in November 1949. Bank's emphasis on consumer banking by providing them with innovative saving schemes, products and services suiting best to their life style. 12. Attractive compensation packages for employees, which really improved their commitment, dedication and hard work towards the accomplishment of bank's objectives. 13. Easy access to the customers at their residential localities through a well spread branch network. 4.2 WEAKNESSES National Bank Mandian branch act as state bank in city of pines, although bank operations are running smoothly but there are some shortcoming /weaknesses which must be over come to increase the efficiency and to increase the profitability of the branch through utilizing there resources well. The following are some critical issues which must seriously take under consideration for the betterment of the NBP Mandian branch Abbottabad 1. Lack of Public Dealing Skills: Like all other Govt. Sectors the performance on the part of the workers is also very low. The attitude of the workers towards the public is also insulting which affects badly on the business of the bank. 2. Lack of Marketing Effort The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort. A need for aggressive marketing is there in the era marketing in now becoming a part of every organization.

63

3. Lack of Financial Product The bank falls far behind when the innovative and schemes are considered it has not been involved in the tug of war between the competitors to the accounts and strengthens the existing customer base. This stands out to be the major incompetence and weakness of the banks. 4. Inefficent services: During the rush hours, the bank is founded out to be a total flop to handle the mob of people peaking from windows and doors. The bank has deficiency to operate in the stages of rush hours where the people find them services entangled in a situation of nowhere because they are not well served. 5. Lack of Modern Equipment The bank lacks the modern Equipment that is note counting machine computers. Even if there is any equipment they lack to fall in the criteria of being rearmed as up date and up graded 6. Shortage of Staff National bank Mandian branch Abbottabad more than 50 thousand customers per month which is quite difficult to manage but shortage of staff is problem in the branch. 7. No Proper Utilization of Technology National bank is one of the top most banks in Pakistan and only bank in public sector. National bank Mandian branch is lacking the proper use of latest technology as other private banks are doing to make customers fully satisfied by providing them additional facilities 8. Untrained staff It is also a major weakness of NBP that majority of its staff is untrained whose performance is also very low. 9. Favoritism and Nepotism

64

It is also a major weakness of NBP because of nepotism and favoritism the competent personnel cannot reach the higher positions and badly affects the performance. 10. Govt. interferences Govt. intrusion also badly affects the credit and other policies of the bank. 11. Lack of coordination The efforts of the employees are not coordinated as well as other operations of the bank. 12. Unpleasant working environment Unpleasant working environment is also a major weakness of the NBP. Because of this reason the performance of the workers lowers down. 13. Complaint of Customer In the branch, there is no facility available for the customer complaint. It hampers the image of the bank. 14. Note Counting Machine There is no note counting machine available in that branch which is very necessary for time saving and accuracy... 15. No ATM Card There is no ATM card facility available which is very necessary for a progressing bank branch. 16. Introduction of New Technology Introduction of new technology and electronic banking is not used in the branch if used up to a very low level. 17. Difficulty to Draw Amounts The process of encashment of the cheques is very slow, as it has to pass through various persons and processes and a lot of time is wasted. 18. Customers having accounts with small amounts are not given the same attention given to those with large amounts. 19. Higher number of branches affecting maintenance in consistency and same working atmosphere.

65

20. Political, legal and cultural pressures. 21. Lengthy advancement procedures. 22. Promotion is purely based on seniority; so young processionals having high qualification are having any chance of promotion. 23. The software developed for daily recording of the operations is underutilized. 4.3 OPPORTUNITIES Conduct large Workshops for Training and Development Due to its strong financial position the bank can conduct workshops for the development of its staff effectively and can bear all the costs easily 1. Network in foreign countries NBP starts opening branches in foreign countries and it has opportunities to develop them very strongly, like it open a branch in Kabul, which proves to be very beneficial. 2. Gain economies of scale Being the bank with largest branch network and capital structure in Pakistan .NBP can avail economies/of scale by increasing monopolistic hold. 3. Conduct large workshops for training and development Due to its strong financial position the bank can conduct workshops for the development of its staff effectively and can bear all the costs easily. 4. Support of SBP The SBP is providing complete support to the NBP by its different policies and other supporting activities. 5. Better competitive position Having monopolistic hold on the economy the NBP gain competitive edge over other banks, the bank maintain better financial as well as physical and other non physical advantages. 6. Market Recognition For the second consecutive year, NBP was recognized as the best bank in Pakistan by the prestigious periodical, The Banker" UK (a subsidiary of Financial Times Group).

66

7. Growing policies of the Government on business and commerce sector Provides NBP an opportunity to efficiently meet the business people's requirements of instant cash financing facilities. 8. Customer's feedback on different products and services has really improved the bank's performance and encouraged the atmosphere for other future policies. 9. NBP has an opportunity to expand its new technological advancement like Tele bank... and Internet banking facilities in order to serve the customers more, efficiently. Especially E-Banking is a new opportunity which is a flourishing business in foreign countries and can also be here, if NBP takes the initiatives. 10. Due to efficient and experienced management group, NBP can improve and expand its foreign operations successfully. 11. Increasing need and potential of leasing in Pakistan provides NBP an opportunity to utilize its skills and efficiencies in leasing business as well. 4.4 THREATS 1. Globalization. In the era of globalization the bank is now going to face tough competition with multinational banks, which are interested in opening their branches in Pakistan. 2. Increase in Competition The increasing competition in local as well as national and multinational level also lower down the profitability of the bank and compelling the bank to use a large amount of funds to meet out competition. 3. Privatization Privatization policy of the Govt. also create tough times for the bank because of this reason the bank is moving away from the Govt. support during hard times. 4. Political instability in the country The changing governments and their changing policies also prove a poison for the banking industry especially for nationalized banks. The political loans and their remission also badly effect the nationalized banks specially NBP.

67

5. A tremendous number of foreign banks are opening their branches in the country. 6. Highly specialized and attractive services offered by foreign banks to/their customers. 7. Lack of consistency in Government's polices regarding business and economic sector. 8. Growing global technological advancement. 9. Strict regulations of the Government over credit facilities to the customers as well as to meet the prudential regulations. 10. Loss of confidence of overseas customers due to freezing of accounts. The SWOT analysis is a mirror to the bank of its present condition. From this analysis, we can conclude that the bank has done some professional changes in its banking system. But still there are chances for improvement. The management can develop elaborate strategic plans for capitalizing the available opportunities. One area where the bank has done some work is the improvement in customer services. But to get the desired results, the bank should develop long-term objectives and prepare appropriate courses in order to achieve them. a. i. Major problems observed Wastage of time There is major problem of wastage of time due to slow processing as well as less injection of staff where needed. ii. Reward system The employees feel that the rewards are not properly handled and an element of discrimination is seen because of which employees are feel de-motivated. iii. Employee Involvement The employees are not involved in the decision-making because of which they feel that the organization does not value their inputs and fail to develop a sense of belonging to the bank. iv. Office Setting

68

The office setting/ergonomics in the branch is not well arranged to suit the daily requirements due to which a lot of time is wasted of customers as well as the employees v. Low Customer-Satisfaction In this era of awareness customers demand pampering and successful organizations consider them as an important asset. If they are not satisfied they have a wide range of options to select from, the attitude of employees towards banks customers is not right which results in customer loss.

69

Chapter 5 Conclusion and Recommendations

5.1 Conclusion After analyzing the national Bank as a whole and its HR department in particular the following outcomes have been concluded The branches need up gradation; they need to be brought inline with the head office standards across the country so that the customer can feel no difference in service whichever branch he sets foot in. HR procedures are well in place in books but are not being practiced fully one big reason for this can be that the field is still in the embryonic stages in Pakistan pertaining to this need for training in HR for all sections so as the employees should understand the policies, rules, regulations operating in organization. These policies need to be properly communicated to them. It has been concluded further that the policies regarding major HR functions such as recruitment/selection, training and development are well in place but for certain ulterior and personal motives individuals keep them deliberately hidden from rest of employees. This is the main reason for employee grievances, as they dont have access to such information. Banking is the business that is directly related to general public and an employee can be judged by the appraisal from customer. This practice will increase the accuracy of performance check as well will improve the behavior of employees with general public If above mentioned recommendations are properly taken into account this can help prevent wastage of time, resources, professional potential and can increase the organizations performance and goodwill. 5.2 Recommendations The management should solve the above-mentioned problems and then try to reduce their cost by taking the following steps:

70

1. Branch management committees in all branches should take special measures to encourage internal communication within the unit and with other units of the Bank 2. The hiring procedure should be transparent and a wider pool of applicants should be considered with the help of advertising for vacancies that can help in bringing in a wider set of talent. 3. The employees should be appraised regularly and awarded for better performance to increase their level of motivation and commitment to work 4. The Bank must institutionalize mechanisms to safeguard against the risk of violation of accepted norms of conduct in the day-to-day interaction among staff members, and between supervisory staff and their subordinates. 5. There must be timely dissemination of the information so that staff should not be in the state of confusion and uncertainty. 6. The office also seems to be congested as the space available for the personnel employed is not adequate and there is limited number of seats for the customers so NBP must provide a better seating arrangement for its customers. 7. The employees must be encouraged to contribute note-worthy events at their respective offices through their mentors or managers. 8. There must be a spacious place for the clients to park their vehicles. 9. There still remain untapped geographical segments, particularly in rural areas, which can create a significant market. 10. Employees should be involved in decisions affecting them. 11. Promotions and reward systems should be fair. 12. Introducing new and efficient products. 13. Total quality approach should be used. 14. Training should be according to assessed needs. 15. Creation of enhanced performance appraisal system. 16. Job rotation and job enrichment for employees.

71

17. I believe that some informal communication as well as informal activities should also take place without disturbing normal working schedule to promote a relaxed and friendly atmosphere among colleagues. 18. Public relation desk should be established in each and every branch for guidance as well as redress of grievance of customers at the spot. 19. New talent/professionals should be hired to cope with the competitive demand in the industry. 20. Information technology should be introduced in all branches to enhance the efficiency 21. Employee induction, promotion and transfer must always be made on merit. 22. To motivate the employees, their remuneration/salaries should be made at par with top tier banks.

72