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ACKNOWLEDGEMENT

Firstly, we are thankful to Almighty ALLAH, who bestowed upon us


the knowledge and courage to complete this project.
Then I would like to express our immense gratitude towards our
institution
INSTITUTE OF SOUTHERN PUNJAB, Multan which created a
great
platform to attain profound technical skills in the field of
BBA(HONS), thereby fulfilling our most cherished goal.
We are, then, grateful to our respected teacher SIR FARHAN
GILLANI

whose

proper

guidance

and

always

encouraging

behavior helped us in completing our project efficiently.


And last, but not the least, we are grateful to our loving parents
for providing us all sort of moral and social support in life. Without
their prayers our success would not have been possible.

STATE BANK OF PAKISTAN



Introduction:

The State Bank of Pakistan is the central bank of Pakistan. While its
constitution, as originally lay down in the State Bank of Pakistan Order 1948,
remained basically unchanged until January 1, 1974, when the bank was
nationalized, the scope of its functions was considerably enlarged. The
headquarters are located in the financial capital of Pakistan, Karachi with its
second headquarters in the capital, Islamabad.
There are two subsidiaries of SBP namely State Bank of Pakistan-Banking
Services Corporation (SBP-BSC) and National Institute of Banking and Finance
(NIBAF). The Governor SBP is chairperson of Boards for both the subsidiaries.
SBP BANKING SERVICE CORPORATION:
SBP-BSC (BANKING Service Corporation) came into existence after bifurcation
of State Bank of Pakistan in January 2002 and since then has been working
as the operation alarm of SBP for currency and credit management,
facilitating inter-bank settlement system, dealing in savings instruments of
the government, collecting revenue and making payments for and on behalf
of government and operational work relating to management of debt and
foreign exchange. SBP-BSC Board comprises of all the members from the
Central Board of SBP and the Managing Director of SBP-BSC.
VISION statement OF SBP - BANKING SERVICE CORPORATION:
To develop SBP into a dynamic and efficient organization equipped with
requisite technology and human resource capable of extending sustainable
support to the State Bank of Pakistan in achieving its objectives
MISSION statement OF SBP BANKING SERVICE CORPORATION:
To provide excellent banking and financial services to stakeholders besides
ensuring implementation of 4SBP policies in order to command their trust
and respect

NIBAF National Institute of Banking & Finance:


NIBAF was established by Pakistan Banking Council (PBC) and was taken over
by SBP in 1997. NIBAF is the training arm and is responsible for design,
delivery, development and evaluation of trainings.
Vision of NIBAF is to be apex institute of Human research development in
field of Banking & Finance

FUNCTIONS OF STATE BANK OF PAKISTAN:


Like a Central Bank in any developing country, State Bank of Pakistan
performs both the traditional and developmental functions to achieve macroeconomic goals

TRADITIONAL Functions:
The primary functions including:

Issue of notes, regulation and supervision of the financial system,


bankers bank, lender of the last resort, banker to Government, and
conduct of monetary policy.
The secondary functions including the agency functions like
management of public debt,
Management of foreign exchange, etc.
Other functions like advising the government on policy matters and
maintaining close relationships with international financial institutions.

Promotional Functions:

Development of financial framework.


Provision of training facilities to bankers.
Provision of credit to priority sectors.
Islamization of the banking system

Departments of STATE BANK OF PAKISTAN:


State bank of Pakistan is giant entity and has a very wide scope of operations
which it performs in variety of fields related to banking. For better
management and efficient as well as effective execution of these actions in
different fields, State Bank of Pakistan has formed number of departments.
Each department is exclusively responsible for taking care of all activities
that belong to its departments scope. A list of more functional departments
of SBP is given below:

1) Agricultural Credit Department


2) Banking Inspection (on-site) Department
3) Strategic and Corporate Planning

4) Human Resource Department


5) Banking Policy & Regulation Department
6) Banking Surveillance Department

7) Business Support Services Department


8) Domestic Market & Management Department
9) Economic Analysis Department
10) Exchange Policy Department
11) External Relations Department
12) Financial Market Strategy & Conduct Department
13) Financial Stability Department
14) Information System & Technology Department
15) Housing Finance Department
16) Internal Audit\ Compliance Department
17) International Market and Investments Department
18) Islamic Banking Department
19) Monetary Policy Department
20) NIBAF Karachi & Islamabad
21) Off-site Supervision & Enforcement Department
22) Payment System Department
23) Research Department
24) Risk Management and Compliance Department
25) Micro Finance Department
26) SME Finance Department
27) Training and Development Department

Human Resource Department


OVERVIEW:
Human Resources Department (HRD) at the State Bank of Pakistan is making
continuous efforts to strengthen the participative role of HR. During the year,
HRD remained focused on building a strong relationship between the
management and employees. A smooth union referendum and a
collaborative approach towards resolution of the unionized staffs problems
were part of the efforts. After ten years, the referendum was a significant
step towards having industrial relations between management and the
unionized employees. Significant developments during the year also included
reviews of various HR policies and practices to re-align these with the Banks
strategic objectives.

HRD ACTION PLAN 2011-2015 :

HRD developed a comprehensive five-year action plan in alignment with the


overall strategic direction of the Bank. The plan focuses on three specific
goals aimed at improving efficiency and effectiveness of the existing HR
policies and programs.
These goals are:
To further improve SBPs work ethics philosophy, promote value-based
performance culture, and enhance the effectiveness of various HR policies
such as succession planning, performance management, recruitment and
compensation, balancing bank-wide workload distribution, and
implementation of capacity building initiatives in co-ordination with Training
& Development Department.
HRD plans to implement these targets in a priority defined phase wise
approach within the next five years.
OUR PEOPLE, OUR ASSETS:
At the State Bank, we firmly believe that the principal source of our strength
as an organization is our human resource base. Managerial attention at the
Bank has therefore been focused on the need to continuously invest in
people, provide them with the right incentives to perform better and to make
merit and performance the criteria for professional and career development.
At the State Bank, we strive to develop and sustain a work environment in
which each employee is empowered, is provided with opportunities for
professional growth and is recognized and rewarded for the contribution
made towards achievement of organizational objectives. We value diversity
in terms of the unique characteristics that each member of our team brings
to the organization as reflected in diverse educational and professional
backgrounds, cultural and gender perspectives. This mix positively impacts
institutional approach and decision processes by providing broader horizon,
helping along the way the institution to be a more aware and responsive
organization.
MISSION STATEMENT:
To transform the State Bank of Pakistan into an Employer of Choice this
nurtures talent through its enabling culture.
VISION STATEMENT :

We are committed to excellence at acquiring, developing and retaining the


right talent by:

Aligning our HR policies with market


Serving as a strategic partner to the line Departments
Administering superior and prompt HR services

In this Project we can discuss the following functions of HR


department(SBP)

1.
2.
3.
4.
5.

Recruitment & selection


Training & development
Employee benefit
Performance appraisal system
Performance management system (PMS)

1. RECRUITMENT & SELECTION RECRUITMENT AT


SBP:
(ENSURING COMPETITION, MERIT AND TRANSPARENCY)
It refers to the process of attracting, screening, selecting, and on boarding a
qualified person for a job. In the perspective of managements philosophy
regarding acquisition of talent, recruitment activity was concentrated at the
entry level positions. This approach being in line with strategic needs of the
Bank was undertaken to hire skilled human resource. This approach also

serves as a progressive career path for our workforce through mechanisms


such as career development and succession planning.
Selection of the right people for the job is the first step towards developing
an efficient institution. Great stress has therefore been laid on ensuring that
the recruitment process at the State Bank is highly competitive, transparent
and merit based. As a result of this conscious policy, we have been able to
attract some of the top talent in the country in the fields of Economics,
Finance, Business administration, IT, Accounts and Audit as well as Statistics.
As an Equal Opportunity Employer we consciously seek diversity in terms of
education, geographical representation and gender and have actively
encouraged women to apply for positions at the State Bank. As one of the
largest employers of professionals in the country, with intake of more than
70 fresh graduates at entry level positions and frequent recruitment at senior
levels, we have successfully developed a system that is unblemished by
nepotism, subjectivity and political interference, All recruitment is through
open advertisement and follows a well drawn out procedure involving
thorough scrutiny of all applications according to clearly specified criteria,
written tests developed and administered by external experts and interviews
by a panel that has representation from our Board of Directors as well as
private sector specialists in the relevant field. This commitment to quality
and merit will continue in our recruitment and other managerial actions.
Eligibility Criteria for selection:
QUALIFICATION:
Masters Degree or 16 years of education (with at least 60% marks where
percentage system applies, or, minimum 3.00 CGPA where GPA system
applies) in Business/ Public Administration, Business Economics, Economics,
Statistics, Commerce, Mathematics, Computer Science/ I.T from HEC
recognized university

AGE:
Maximum 28 years as on the last date of submission of applications to SBPBSC.
DEGREE COMPLETION:

Candidates awaiting final result are not eligible to apply. Candidates should
have fully completed all requirements of degree and must attached copy of
Provisional Certificate, Mark sheet/ Transcript.
WRITTEN TEST:
The candidate meeting the above eligibility criteria are required to register
themselves with NATIONAL TESTING SERVICE (NTS) for appearing in the
written test.
SELECTION PROCEDURE:
Eligible candidates will be required to take a comprehensive written test in
English Composition, Quantitative Skills and Current Affairs/ Intelligence/
General Knowledge. Candidates who qualify the written test will be invited to
appear for Group Discussion. Only the candidates who qualify the Group
Discussion phase would be eligible to appear before an interview panel on
same date. Selection will depend on marks obtained in written test, Group
Discussion and interview(s). Successful candidates will be selected in order
of merit, as Assistant Direct in State Bank of Pakistan, Karachi. All
appointments in State Bank of Pakistan are made in compliance with
prescribed regional/ Provincial Quota requirement. The candidates short
listed on the basis of merit of written test and available number of vacancies
will be invited for interview before a selection board at SBP-BSC
PRE-INDUCTION TRAINING:
The selected candidates will be imparted up to 4 weeks training
COMPENSATION PACKAGE:
The selected candidates will be offer appointment for the position. They will
entitle to
Consolidate monthly monetized salary of Rs 34,000/- in the salary range of
Rs 34,000 79,350
Medical facility for self, dependent spouse and dependent children only as
per banks rule
Provident Fund, Gratuity, Leave Fare Assistance, Staff Loans & other facilities
as per banks rules

APPLICATION PROCEDURE:
After the announcement of written test result by NTS. The application forms
will be available online at www.sbp.org.pk/jobs/. Printed copies are available
on all offices of SBPBSC across the country. Application sent via e-mail will
not be entertained.

2. TRAINING AND DEVELOPMENT


TRAINING AND DEVELOPMENT DEPARTMENT (T&DD) OF SBP:
Training and Development Department (T&DD) is responsible for assessing
and arranging for the training needs of SBP employees. To address the
requirements, training is organized on three tracks, i.e., central banking,
function specific, and management development. The department liaises
with reputable domestic and international institutions for these training
needs. Officers received foreign training also. A total of 267 officers
benefitted from training at prestigious local training institutions. Under the
SBP internship program, 219 interns from within the country and three
interns from foreign institutions were facilitated. T&DD arranged central
banking trainings on important subjects like Operational Risk Management,
Financial Crisis Management Lessons Learnt, How to Inspect Quality of Bank
Assets, Assessment of Banking Sector Stability, Islamic Housing Finance,
Agricultural Lending Documents, and Risk Management. A Foundation
Training Program for promoted officers Grade-1 was arranged at SBP.
IN-HOUSE TRAINING:
In-house trainings are designed to lower travel cost, minimize displacement
from work stations, and attract maximum participation. The Department
coordinated with NIBAF to deliver 16 courses for 282 participants, including 4
specially tailored management development soft skill courses facilitated at
SBP.
HIGHER EDUCATION:
To develop its human resource for future challenges, scholarships were
granted for higher studies pursued domestically and abroad. Three
employees were enrolled in foreign universities, i.e., 2 at Williams College,
USA and one at Australian National University, Australia while 23 officers
were enrolled in domestic universities in the evening MBA/MS program .
DOMESTIC TRAINING:
For the professional development of its employees and to further enrich
their knowledge base in function specific and management development
areas, SBP facilitates its employees participation in domestic institutional
trainings at IBA, IBP, LUMS, PMI, PIM, and others.

FOREIGN TRAINING:
To participate in training programs on central banking offered by foreign
training institutions, SBP encourages its employees and provide them
opportunities. Officers attended various training courses, workshops,
seminars, pertaining to core & support functions of the SBP. These programs
were offered by the IMF, Federal Reserve Bank of New York, ADB, IDB, BNM,
FSA, MAS, Boulder Institute of Microfinance, AUSTRAC, APRACA, BNM, Toronto
Centre,and other prominent institutions.

3. EMPLOYEE BENEFITS:
Compensation and benefits provided

Base Pay
Overtime Pay
Travel/Meal/Housing Allowance
Benefits including: dental, insurance, medical, vacation, leaves,
retirement.
Staff Loan Policy
Facility Of Banks Car & Petrol Ceiling
Medical Facilities
Telephone Charges At Residence
Facility Of Newspapers & Journal
Family Pension

LEAVE ENTITLEMENT:
SBP is providing a various benefits to their employees such as leave benefits
and advances. In leave benefits every employee has two leave accounts:
RLA & SLA. Employee cannot obtain only medical or sick leave , they have
various reasons of leave such as attend party, attend seminar, outstation
leave, domestic problems, R & R leave etc. Employee can avail leave facility
for perform of Hajj. SBP also provide Rest and recreation 15 days leave to
their employees. R and R leave avail once in a year. In SBP female
employees is also availing female leave facility maternity and iddat leave.
Maternity leave can avail thrice during whole period of job. SBP made proper
process of leave application to facilitate to their employees. After retirement/
resignation/death net qualifying service form is very important for calculation
of Net Qualifying Service and case forwarded to internal monitoring unit for
their In order Certificate.
ADVANCES:
The types of loans/Advances provided to employees are as follows:

Personal Loan
Staff Loans
Motor Car Loan

Motor Cycle Loan


House Building Loan
Personal Computer & Printer Loan

4. PEFFORMANCE APPRAISAL
The process by which a manager or consultant
(1) Examines and evaluates an employee's work behavior by comparing it
with pre-set standards.
(2) Documents the results of the comparison.
(3) Uses the results to provide feedback to the employee to show where
improvements are needed and why. Performance appraisals are employed to
determine who needs what training, and who will be promoted, demoted,
retained, or fired.
OBJECTIVES OF PERFORMANCE APPRAISAL:

To maintain records in order to determine compensation packages,


wage structure, salaries raises, etc.
To identify the strengths and weaknesses of employees to place right
men on right job.
To maintain and assess the potential present in a person for further
growth and development.
To provide a feedback to employees regarding their performance and
related status.
It serves as a basis for influencing working habits of the employees.
To review and retain the promotional and other training programs.

5. PERFORMANCE MANAGEMENT SYSTEM:


OBJECTIVES OF PMS:
The major objectives of performance management are discussed below:

To enable the employees towards achievement of superior standards of


work performance.
To help the employees in identifying the knowledge and skills required
for performing the job efficiently as this would drive their focus towards
performing the right task in the right way.
Boosting the performance of the employees by encouraging employee
empowerment, motivation and implementation of an effective reward
mechanism.
Promoting a two way system of communication between the
supervisors and the employees for clarifying expectations about the
roles and accountabilities, communicating the functional and
organizational goals, providing a regular and a transparent feedback
for improving employee performance and continuous coaching.
Identifying the barriers to effective performance and resolving those
barriers through constant monitoring, coaching and development
interventions.
Creating a basis for several administrative decisions strategic planning,
succession planning, promotions and performance based payment.
Promoting personal growth and advancement in the career of the
employees by helping them in acquiring the desired knowledge and
skills.

CONCULSION:
State bank of bank have excellent human resource management system for
their employees for their motivation and satisfaction. Best policies attract
and retain the best employees. Human resource management is the most
pivotal element affecting an organizations overall performance. It is directly
related to employees commitment with the organization and leading
organizations always use it as a tool to attract and retain the most talented
human resource capital.
TRAINING:
SBP use on the job, off the job training technique and most of the time its
depends on need, training improve employees performance, last year SBP
are providing 10% external and 20% internal training.
RECRUITMENT AND SELECTION:
SBP use internal recruitment ,external recruitment and both type of
recruitment sources, they have the best hiring system ,its selection
procedure include written test ,interview, group decision, SBP HR team act as
a consultant to enhance the quality of the applicant pre screening process.
EMPLOYEES BENEFITS:
State bank of bank provides excellent benefits for their employees for their
motivation and satisfaction. Its provide career advancement path to their
employees ,SBP clearly communicate its goal and strategies to their
employees.
PERFORMANCE MANAGEMENT SYSTEM:
SBP performance management system is excellent because its performance
appraisal system is a two way communication, employees are participated in
the job related activities, salary increment and career development is the

main reason for conducting performance evaluation, SBP performance


management system is clearly defined in the organization ,employees are
free to argue about the performance evaluation result if they are not
satisfied.

So overall human resource management system is


excellent in SBP. It is the most dynamic and progressive
public sector organization of the country and is playing a
vital role in the economic revival, growth and
development of Pakistan.

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