Professional Documents
Culture Documents
34
requires coordination for the efficient working of the department. Lack of
coordination may prove to be disastrous.
Employees in the department at times even pass comments on each other. No
doubt such incidences are very rare but are very shocking for the interns and leave
a very bad impression. Inspite of these practices being uncommon but may get
tense at times leave a very negative impression.
6.1.3. CAUSES
35
Interpersonal relationships of the employees in Branch Operations are apparently
constructive. But in fact, the employees have personal conflicts, prejudices and
jealousies for each other. There are many reasons for such behaviors. The first
and foremost is the differences of the employees due to different backgrounds.
Their educational qualification and experiences differ. This nonuniformity has
basically generated conflicts. Also, Personality clashes has resulted into conflicts
Consideration and solution is required by the manager for this problem as it can
prove to be highly unproductive. The manager should try to make them work as a
team. In addition to this, training programs can be arranged for those who fall
behind in education from the other employees of the department to enforce
uniformity in the department.
Political behavior describes the activities carried out for the specific purpose of
acquiring, developing and using power and other resource to obtain one’s
preferred outcomes.2 Favoritism and politics in promotions, rewards, etc., are also
the main factors that added to the negative interpersonal relationships. Also,
excessive competitiveness among the employees has created political attitudes
and behaviors in an effort to gain advantage over another.
Politics and favoritism observed during hiring, promotions, training, rewards, etc.,
is a major issue in almost all the organizations. It is also the main cause of job
dissatisfaction, low morale, low productivity, etc. similar problems exist in
Citibank as well which has created further problems.
Politics has been observed due to personal prejudices hindering the work and
future prospects of the other employee. This is in fact one of the major causes of
anxiety and tension among the employees. In other departments, this problem has
even forced employees to leave their jobs.
36
6.2. OVERBURDEN EMPLOYEES
As far as the working of the bank is concerned, Branch Operations is perhaps the
most imperative department of the bank. Its importance can be judged by its
responsibilities and duties that it performs. This is the place for actual transaction
and it deals with all the paper work. Furthermore, other departments of the bank
heavily rely on the processing of branch operations making it the busiest
department of the bank. Also, employees have to be very careful in their work as
a minor mistake in any transaction from their pert can lead to disaster.
The dependence of other departments and the pressure that it has to bear makes
it’s employees overburden generating the need for more staff. The employees are
always found very busy in their job. They even try to utilize their lunch break to
finish their work in time. Although the bank timings are from 9:00 to 5:00 but the
employees are often found working till late at night. Often the expense table is
found to be very much overburdened at the end of the month. It has to compile
and prepare summary reports of the various expenses occurred in the entire
month.
The over timework can also be perceived as a dedication and commitment on part
of the employees. But at the very same time, the fact that it proves the workload
and the work pressure cannot be denied. This usually creates a negative stress on
the employees and can affect their efficiency and effectiveness.
Thus, the department needs more staff to reduce the burden of the employees and
to enhance the quality of the work. This will help the employees to work more
effectively decreasing the chances of mistakes that can ruin their career.
The Human Resource Department should consider this problem and should take
concrete steps to solve it.
37
more in their work. Organizations have to provide such an environment to their
employees where they can fully give attention to their work.
In addition to this, employees and customers judge the organization by its outlook
and other aspects of physical environment. An organization equipped with the
latest technologies that ensure security and provides a soothing environment to its
employees can best extract the work from them. It also makes them feel that they
are being given importance and consideration by the bank hat further enhances
their commitment and dedication to their work.
Citibank provides a healthier working environment considering every aspect for
improvement. Organizations should not expect much from their employees if they
provide poor working conditions to them as it distracts their attention from their
work.
Utilizing the latest technologies branch operations apart from being centrally air
conditioned with the rest of the branch is fully equipped with comfortable
furniture and computers for carrying out the routine work. The department is
arranged in such a way that a single glimpse gives an idea of a professional
environment.
38
Usually, the department gets overcrowded after the lunch break. This is due to the
fact that the employees of other departments gather here for the completion of
their processing or if there is any error in some transaction. Moreover, the
department was crowded with interns that added to their disturbance.
39
structure and working environment creates the image of the organization. If the
very first impression is poor, customers expect less of them.
Since the bank gives the customers the top most priority, steps should be taken to
make them more comfortable on all the levels
40
candidates already trained will be beneficial from the bank’s point of view as the
working of this department is almost similar to any other bank.
41
convey the message properly and the receiver should receive properly.
Communication within the Branch Operations is sometimes affected due to
disturbances and the inability of the manager to convey it properly. Accent and
pronunciations often create problems for the receiver.
Furthermore, meetings are rarely arranged in this department. Meetings are
important for keeping the employees informed about progress and new plans of
the organization. Inside the branch, telephones are widely used for
communication with other employees.
42
Due to the strict policy of the bank so far no such incidences have been found.
This factor provides additional security to the employees of the bank where work
force diversity exists.
Employees often get frustrated when the organization doesn’t take them into
confidence and share the current happenings or incidences in the organization.
Things get even worse when rumors spread in the organization. A typical
newsletter gives all type of information related to the particular organization
including any success, losses incurred, threats faced by the competitors, stories
about employees receiving awards on some extra ordinary performances, etc.
newsletters are the best way to communicate detailed and technical information.
Branch operations can make best use of it by knowing the growth rate of the bank,
expenses incurred, increase or decrease in the number of customers, change in the
policies of the bank etc. the bank can utilize the newsletter for taking suggestions
of the employees and to take them into confidence if any change in the
organization is introduced or if the bank is passing through a decline stage, etc.
this will prevent the spread of rumors that only increase frustration. Contrary to
this greater loyalty on the part of the employees can be expected.
43
6.8. DEFICIENCY OF LOWER STAFF
44
work including taking papers from one department to the other. This can affect his
willingness to work attentively and with full concentration.
It seems very unprofessional and unkind attitude on part of the bank towards the
lower staff. Considering the demand of work in this crucial department and the
fact that other departments depend on this core department for their functions and
processing, the bank should hire more staff.
45
Training programs are important as it polish the skills and abilities of the
employees. It also reduces the boredom of employees who get tired of doing a
routine tiresome work. Branch Operations require such programs to motivate it’s
employees.
Newly hired employees are rotated are given on-job-training and are rotated in
every department covering every desk so that they get familiar with the functions
and operations of the bank apart from being socialized. Socialization is a process
of adaptation that takes place as individuals attempt to learn the values and norms
of work roles.9 On-job-training places the employees in actual work situations and
makes them appear to be immediately productive.10 During this process every
existing employee has to cooperate with them explaining their work and posts in
the best possible way. Only then they are trained for the specific job for which
they are hired. This helps in the proper and deep understanding of the
organization. Also, it creates a friendly environment for the new employees
helping them to adjust in the new environment.
After the in depth orientation of the bank, a senior employee gives guidance
through directions, advice and criticism to accelerate the growth of the new
employee. This enhances his/her knowledge and expertise and the employee is
then ready to take the task.
For the existing employees of Branch Operations training courses are conducted
on an annual basis for their development. Employees also prepare presentations
that further enhance their abilities and increase their confidence. But the
employees rarely participate in the presentations. The training programs of the
employees and the manager differ.
Employees training needs are discussed with the manager on an annual basis.
Training solutions are delivered through the on-job coaching by the manager or
any other concerned employee and formal training events are organized by either
the Training Center or suitable external sources.
Nomination for the training program is made only after the discussion of its need
with both the immediate manager and the Training Manager.
46
The manager and the employees have to satisfy certain prerequisites, that is, they
have to give internal exams and prove that they are capable of taking a new
course and that they will make best use of it.
Citibank also sends its employee abroad for specialized courses in the banking
related subjects. But this practice has become very rare due to the shortage of
funds. The bank now only sends the employees at the managerial level. The trip
ranges from a week to few months. All expenses are beared by the bank itself.
The selection of the managers is based on their own personal interests for a
particular course and above all his potential and the expectations that the bank has
from the manager.
Since the Citibank spends its money on the employees, the bank is very careful in
selecting the employees for the courses. The bank can only achieve its objectives
successfully depending on the employee’s willingness, interest and effort to make
best use of the course. Also skills of the employee are also important for the
specific training program.
Citibank has another benefit of the training courses. The employees can carry out
their routine task along with the training because they don’t have to look for other
institutes that provide training in the respective area. This prevents the bank from
granting them study leaves causing no disruption in the work.
The major flaw observed in the selection of employees for the training purposes is
politics and favoritism to push the desired employee upwards.
6.10. INTERNEES
In almost all the organizations of this day, internees are welcomed due to many
reasons. They may get inexpensive help for the operational and administrative
activities enabling them to concentrate on other important work. Also, this may
help the organization in building its image for educating and training students by
giving them a practical and professional environment to work.
Secondly, organizations along with good image and getting inexpensive help can
reduce the cost of on-job-training by hiring the already trained interns. Many
47
organizations keep an eye on their internees and maintain their record. Usually
internees who have performed well during their internship are preferred for jobs.
Citibank make full use of this opportunity and fully utilize their services all round
the year. Like many organizations, Citibank also gets a bit overcrowded with
internees. No doubt, the departments have a fixed number of internees and their
record is maintained properly but during the summers when most of the
educational institutes have an internship requirement for their students, the bank
gets crowded.
48
audit of the bank is near as they give internees the task to complete and check all
the documentation and the records kept in files. Internees also have to arrange the
files in proper order.
In branch operations, internees had to check all the necessary documents in the
account opening forms for all the accounts that can be opened by the bank.
Account opening forms had to be arranged according to their account numbers
and it consumed and wasted internee’s time and effort.
Apart from the account opening forms, they also had to complete checking of the
records on other desks in the department. In case if any document was missing
they had to search for it in all the relevant folders. They had to make the lists of
all the account holders showing their account numbers, name of the account
holder and the code of the Personal Banker. Every Personal Banker has his own
code number which is used instead of their names. These lists were then attached
in the folder having the account opening forms along with necessary documents
of all the account holders mentioned in the list.
Internees were also called from other departments for this purpose that prevented
them to get orientation of other departments. By the time they finished this work,
their tenure for apprenticeship had already ended.
Moreover, internees are also rarely allowed to operate the computer systems for
security purposes and due to the fear of losing important data. Any leakage of
information from the bank can destroy its image and would make them
answerable to their customers decreasing its credibility as well.
All the above-mentioned work taken from the internees could never increase their
knowledge and understanding about the branch operations and it’s processing. On
the other hand, if proper attention is given to the internees it would be very
beneficial for them.
Thus, it is always unfortunate for the interns when the bank’s audit is near. No
doubt, in normal circumstances they have to work in similar areas but the
workload doubles in the latter case. This only adds to the disappointment on the
part of internees and thus increases their frustration. Many internees also leave
49
their internship in the bank if they find another better opportunity to work in some
other organization where internees are entertained properly.
The kind of work taken from the internees also shows the inefficiency and
laziness on the part of the employees for not maintaining the records. The data
when kept improperly also wastes the employee’s time in searching for it.
50
Internees get a certificate of completion at the time when they have ended with
their internship that gives a brief description of their abilities and attitude towards
their work.
51
Unwillingness to work in an organization is a very important problem that needs
to be solved at once. The HRM have to identify the main cause and take effective
steps for improving the situation. In this present day where human resource has
gained much importance and consideration from all over the world for the
efficient and smooth running of the organizations, human related problems needs
timely solutions.
Branch Operations requires normal routine procedures making employees often
exhausted and they feel boredom due to the same work routine initiating a need
for change.
In addition to this, employees are much overburdened. When compared with the
salary their work timings and the amount of the work exceeds the bank timings.
They have to work overtime to finish it and often the employees leave the bank
very late.
Favoritism and politics in promotions also frustrate other employees and they are
usually found in a bad mood. At times they even talk harshly with other
employees who are dependant on them for the completion of their processing.
They feel ignored and unimportant reducing confidence and ultimately creating
unwillingness to put an effort in their work. Also, employees sometimes leave
their work and waste their time in chatting with each other.
These factors should be considered and reported by the manager to the Senior
Managers or the HRM of the bank to avoid any such problem.
52
absence of the employee. Moreover, it is a tool of removing boredom of the
employees in the organization.
In Citibank job rotation is observed normally at the time of promotion. Discussing
specifically Branch Operations, this essential factor is lacking. Employees in this
department cannot handle the work of the other desks except the Manager
himself. It has been observed that while directing the nonrelated employee in the
absence of the associated employee, the manager often gets frustrated as he gets
disturbed every time the employee asks for guidance. This affects the functioning
of the department, as it cannot afford any obstacles in it’s working.
53
in productivity and thus affecting the quality of services provided to the
customers.
Furthermore, the Operations head that is the Senior Manager of this department
believes in autocrative leadership style worsening the situation for the Operations
Manager. Fear as a management style can accomplish short-term results; the long-
term consequences can be devastating. Motivational management produces better
results those who focus on positive reinforcement rather than fear and
intimidation are the successful managers.
6.14. TECHNOLOGY
6.14.1. Adaptability
Citibank has a greater adaptability in acquiring latest technologies. Being a
multinational bank it has an easy access to all types of new development that can
add to the better functioning of the organization. This acquisition can either be the
addition to the physical environment or the computer software’s etc.
Implementation of ATMs all round the world is another example. The up to date
computer systems along with the advance software that aim at providing greater
security and efficient maintenance of records of the customers with the least
possible errors proves the greater adaptableness to the new emerging technologies
that other local banks lack.
Being a multinational, the bank has much more resources that enhance their
capabilities to compete in the market. Innovative service methods attract a large
pool of customers that triggers the growth rate of the bank. Self Service Banking
and Citiphone Banking in Pakistan have further added to the goodwill of the bank.
54
All the branches of Citibank in Pakistan are interlinked through Internet with the
Karachi server. The Islamabad branch has to create a link with this server. The
reason is that all the information is fed on this server, which requires time to
access that information. Due to this problem, the communication system slows
down affecting the work of the employees. They have to wait for the network to
revive.
Moreover, the computers have Pentium II processors and needs to be upgraded.
By doing this the speed of the system will improve.
55
CHAPTER 7: FINANCIAL ANALYSIS
56
7.2. Balance Sheet Analysis
The analysis of the balance sheet of Citibank N, A. is done keeping in view the
figures available in the annual report of Citibank N.A, for the financial year 1999
and 2000. Balance sheet is the summary of a firm’s financial position on a given
date that shows total assets, total liabilities and owner’s equity.15
57
Liabilities Side
Decrease in the saving deposits has found to be the major cause of decline in the
overall Deposits of the bank. The figure shows a substantial increase of 105% in
the Borrowings from other Banks. This was mainly due to the borrowings from
the banks within Pakistan in local currency.
The Net Assets shows a negative figure in both the FY 1999-2000. However an
increase in the net assets has been observed in the FY 2000.
58
Table 7.2. Percentage Change in Assets, Liabilities and Shareholder’s
Equity.
31-Dec-99 31-Dec-00 %age
ASSETS Rs. In “000” RS. In “000” Change
Cash 7,368,481 7,028,202 -4.6%
Balances with other Banks 35,502 276,981 680%
Money at Call and Short Notice 100,000 350,000 250%
Investments 12,477,613 12,073,423 -3.2%
Advances-Net of Provisions 21,501,323 24,296,271 12.99%
Operating Fixed Assets 484,708 438,753 -10.47%
Other Assets 5,080,892 4,023,962 -20.80%
47,048,519 48,487,592 3.05%
LIABILITIES
Deposits and Other Accounts 38,800,980 36,158,239 -6.81%
Borrowings from other Banks, Agents, etc. 2,503,076 5,134,603 105%
Bills Payable 520,004 465,084 -10.56%
Other Liabilities 5,690,461 6,808,545 19.64%
47,514,521 48,566,471 2.21%
Net Assets (466,002) (78,879) 83.07%
Represented by:
Head Office Capital Account
Accumulated Loss (466,002) (86,370) 439.54%
Surplus on Revaluation of Investments - 7,491 100%
(466,002) (78,879) -83.07%
Memorandum Items:
Bills for Collection 1,817,491 2,074,731 14.15%
Accept., Endorse. and other Obligations 3,680,129 1,689,142 -54.10%
Contingent Liabilities and Commitment
Source: Based on figures available in the financial statements, Citibank N.A, 1999 and 2000.
59
Rs. 3,339 in 2000 from Rs. 6,376 in 1999. Other Operating Income also
increased to 4.73% due to the losses recovered from credit.
60
61
7.4. NET CASH FLOW
62
7.4. Percentage Change in Net Cash Flow
Cash Flow from Operating Activities 31-Dec-99 31-Dec-00 %age
63
Other Liabilities 1,110,899 (325,803) (441) %
Source: Based on Figure available in Annual Report, Citibank N.A, 1999 and 2000.
64
7.5. FINANCIAL RATIOS
65
Table-7.5. FINANCIAL RATIOS
Profitability Ratio
Profit Margin (0.06)% 0.84%
Return on Assets (0.007)% 0.008%
Return on Equity 0.71% (4.872)%
Source: Based on Figure available in Financial Statements, Citibank N.A, 1999 and 2000.
66
7.6. Graphical Representation of Growth/Loss
6000000
4000000
2000000
0
2000 2001
Balances with other banks have decreased by 57.2% and has caused considerably
in decreasing the current assets of the bank.
67
7.6.2. Other Assets (Rs. 000)
2001
2000
Other assets have decreased and a net change of 15.8% is observed. Eventually,
this has affected the overall fixed assets of the bank. Thus, the fixed assets of the
bank have lessened in the FY 2001.
68
7.6.3. Borrowings from Other Banks (Rs. 000)
2001
2000
0 5000000 1000000 1500000 2000000
0 0 0
Borrowings from other banks have decreased. The net decrease in the borrowings
from other banks observed is 88.8%, which has in turn caused the current
liabilities to decrease.
69
7.6.4. Net Assets (Rs. 000)
8000000
6000000
4000000
Net assets have increased in the FY 2001 and a net change of 18.79% is observed.
This is due to the greater increase in the total assets.
70
7.6.5. Profit after Taxation (Rs. 000)
2001
2000
.
A net change of 33.7% is observed that shows a healthy sign. This is due to the
significant increase in the net mark up interest income after provisions.
71
7.6.6. Total Assets (Rs. In millions)
2001
2000
Total asset has increased by 6.6 % which is due to the significant increase in
net investment and in current assets.
72
7.6.8. Deposit Growth Ratio (Rs. 000)
200000000
150000000
100000000
50000000
0
2000 2001
Deposits of the bank have increased by 12%. This is mainly due to the increase in
the saving deposits of the bank.
73
7.6.9. Advances Growth Ratio (Rs. 000)
100000000
80000000
60000000
40000000
20000000
0
2000 2001
The net advances of the bank have been decreased by 12.7%. This has, to some extent, caused
the total assets to decrease.
74
REFERENCES
75
1
Griffin, Ricky W., (1997). Management. Fifth Edition. USA: Houghton Mifflin Company. p.582.
2
Ibid.p.524.
3
Werther, Jr., William B. and Davis, Keith, (1996). Human Resources and Personnel Management. Fifth Edition. USA:
Mc-Graw-Hill, Inc.
4
Griffin, Ricky W., (1997). Management. Fifth Edition. USA: Houghton Mifflin Company. p.540.
5
Ibid. p.540.
6
Ibid. p.544.
7
Ibid. p.551.
8
Decenzo, David A. and Robbins, Stephen P., (1996). Human Resource Management. Sixth Edition. USA: John Wiley &
Sons Inc. p.468.
9
Ibid. p.220.
10
Ibid.p.230.
11
Griffin, Ricky W., (1997). Management. Fifth Edition. USA: Houghton Mifflin Company. p.474
12
Ibid. p.295.
13
Decenzo, David A. and Robbins, Stephen P., (1996). Human Resource Management. Sixth Edition. USA: John Wiley &
Sons Inc. p.468.
14
Citibank N. A, (2000). Financial Statements, Karachi.
15
Van Horne, James C. and Wachowicz, JR., John M., (1998). Fundamentals of Financial Management.Tenth Edition.
USA: Prentice-Hall,Inc. p.121.
16
Block, Stanley B. and Hirt,Geoffry A., (1994). Foundations of Financial Management. Seventh Edition. USA: Richard
D.Irwin, Inc. p.54.
17
Ibid.p.140.