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MUSLIM COMMERCIAL BANK

Contents
Acknowledgement...........................................................................................................................3
Executive Summary.........................................................................................................................4
History of Banking..........................................................................................................................5
Company Name:..............................................................................................................................5
Introduction of MCB Bank Limited................................................................................................6
Ownership....................................................................................................................................6
Business Volume..........................................................................................................................6
Vision Statement..............................................................................................................................7
Mission Statement...........................................................................................................................8
Organizational Structure..................................................................................................................8
External Environment of MCB:.....................................................................................................10
Products and Services:...............................................................................................................10
Corporate Banking.................................................................................................................12
Personal Banking...................................................................................................................13
Personal And Corporate Banking..........................................................................................15
Competition:..............................................................................................................................17
Internal Environment:................................................................................................................18
SWOT Analysis.........................................................................................................................18
Strengths:...............................................................................................................................18
Weaknesses:...........................................................................................................................18
Opportunities:........................................................................................................................19
Threats:..................................................................................................................................20
Human Resource Management:.....................................................................................................21
Activities performed by HR department:..................................................................................21
HR Department Hierarchy:........................................................................................................21
Strategic Human Resource Management...................................................................................22
Job Analysis...............................................................................................................................22
Recruitment and Selection Procedure:.......................................................................................22
Orientation and Training Development:....................................................................................24
Performance Appraisals:............................................................................................................25
Compensation Management:.....................................................................................................26
Health and Safety Conditions:...................................................................................................26
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Career Management:..................................................................................................................27
Flaws in HR practices:...............................................................................................................27
Recommendations:........................................................................................................................27
References:....................................................................................................................................28

MUSLIM COMMERCIAL BANK

Acknowledgement
Person is not a perfect in all the contexts of his life, He has a limited mind and mind thinking
approaches. It is the guidance from Almighty Allah that shows the man light in the darkness and
the person find his way in the light. Without this helping light, person is nothing but a helpless
creation.
I also owe my thanks to my teachers. We feel so richly blessed to have them as our instructors,
whose strength and wisdom we learn up to and no doubt experience of studies with them is far
better than I believed possible. I appreciated the way of Supervised, explained and guided me.
They are really a source of inspiration for us and for every student of University of Management
and Technology.
We also very thankful to all our honorable staff members of MCB New Alamgir Market,Lahore
for there co-operation and guidelines for preparing this report. I tried my level best to prepare
this event with high level of accuracy but no one claim to perfect other than ALMIGHTY
ALLAH.
Last but not the least; ordinary words of gratitude do not encompass the true love and guidance
extended to my loving and caring parents. Their constant interest, prayers and encouragement
have been a very strong support for me and have enabled us to finish this task.

MUSLIM COMMERCIAL BANK

Executive Summary
Muslim commercial bank limited was incorporated in Pakistan and is engaged in commercial
banking and related services. It is serving the nation as one of the leading Banks in Pakistan. The
bank is listed on all the stock exchanges in Pakistan, in accordance with the directives of the
federal government regarding the shifting of the banking system to Islamic modes; the State
Bank of Pakistan has issued various circulars from time to time. Muslim commercial bank
provided quality financial services in the country with profitability and responsibility and to be
the best place to work. has a solid foundation of over 60 years in Pakistan MCB's operations
continued to be streamlined with focus on rationalization of expenses, realignment of backend
processing to increase productivity, enhancement of customer service standards, process
efficiency and controls.
The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services
in the country by providing centralized foreign trade services to branches with a view to improve
efficiency, expertise and reduce delivery cost. With a network branches all over the Pakistan and
a team of dedicated professionals, MCB is Pakistans largest private sectors commercial bank.
Further MCBs organizational structure, design, advantages, charts and hierarchies are discussed.
Whereas, on the other hand, its competitors, external and internal environment and background
are discussed too.

MUSLIM COMMERCIAL BANK

History of Banking
The word Bank is said to have been derived from the words Bancus or Banque or Bank.
This history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep
money and valuables of the people in temples. These priests thus acted as financial agents. The
origin of banking is also traced to early goldsmiths. They used to keep strong safes fro storing
the money and valuables of the people. The persons who had surplus money found it safe and
convenient of deposit their valuables with them. The first stage in the development of modern
banking, thus, was the accepting of deposits of cash from those persons who had surplus money
with them.
The goldsmiths used to issue for the money deposited with them. These receipts began to pass of
transactions form hand to hand in settlement because people had confidence in the integrity and
solvency of goldsmiths. When it was found that these receipts were fully accepted in payment of
debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified
amount of money form goldsmiths. A depositor who is to make the payments may now get the
money in cash form goldsmiths or pay over the receipt to the creditor. These receipts were the
earlier bank notes. The second stage in the development of banking thus was the issue of bank
notes. The goldsmiths soon discovered that all the people who had deposited money with them
do not come to withdraw their funds in cash. They found that only a few persons presented the
receipts for encashment during a given period of time. They also found that most of the money
deposited with them was lying idle.
(en.wikipedia.org/wiki/Bank)

Company Name:
MUSLIM COMMERICAL BANK LIMITED

MUSLIM COMMERCIAL BANK

Introduction of MCB Bank Limited


MCB is one of the top banks of Pakistan founded by ISFHANI and ADAMJEE families on July
1947 under the Indian Companies Act. In 1974 MCB was nationalized along with all other
private sector banks. After the Indo-Pak partition, bank moved to Dhaka and then bank
transferred its registered office to Karachi in 1948. The head office of MCB was shifted to
Lahore in 2008. The new headquarter located at Jail Road and the building called MCB house.
MCB headquarter is still in Karachi serving the nation. The MCB tower in Karachi is the tallest
building in Pakistan.
The Bank has more than 5.2 million customers nationwide and have network of more than 1,700
branches and 500 ATMs in the market.

Ownership
The ownership of the bank was changing with the passage of time. Bank was nationalized by the
Bhutto Government in January 1974 and then Premier Bank limited merged with MCB. In the
late 1991, the bank get privatized and purchased by a Pakistani corporate groups named as
Nishat Group, founded in 1948. Nishat group is the most diversified business group in Pakistan,
including banking sector, textile sector, and insurance and cement sectors. NCB was the first
bank of Pakistan who gets privitized. Chairman of the Nishat group and NCB is Mian
Mohammad Mansha and hi did his best and play the most import role in the success of the bank
as well as group. .

Business Volume
MCB is the Pakistans largest Bank according to the market share which is 18% in 2011. Its
assets are worth of PKR 605 billion in the same year. Its network is wised consisting of 1,221
branches around all over the Pakistan including eight Islamic banking branches, 689 ATMs with
a market of 200 million.

MUSLIM COMMERCIAL BANK

The Bank is also doing its operations in SriLanka, Bahrain ad Dubai, UAE. MCB Also
incorporates an Asset Management Company known as MCB asset Management Company in
2005. The bank also establishes a private company in Hong Kong which is the subsidiary of
MCB with the partnership of Standard Chartered Bank. MCB is growing very quickly specially
in Pakistan by setting high performance standards and innovativeness in their product and
services. Bank is also leading in the technology and providing its customers best technical
services as compare to all competitor banks. Its extensive network of branches helps its
customers to avail best services of the customer.
Fully Owned Subsidiaries of MCB include :
Muslim Commercial Financial Services (Private) Limited
MNET Services (Private) Limited
MCB Trade Services Limited
MCB Asset Management Company Limited
MCB leasing (Closed Joint Stock Company)
The Bank has achieved this success, especially in the last few years, through consolidating
corporate banking operations, strengthening retail banking, launching diversified and innovative
products, giving more focus to consumer financing and investing in IT.
.MCB reported net profit of PKR 15.5 billion or approximately US$183 million in 2009 and
generated a return on average equity of 27.35% and a return on assets of 3.25%. The Banks
asset quality is strong with a gross NPL ratio of 8.62%.

Vision Statement
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.
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Mission Statement
We are a team of committed professionals, providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us.

Organizational Structure.

MUSLIM COMMERCIAL BANK

MUSLIM COMMERCIAL BANK

External Environment of MCB:

Products and Services:


FULL DAY BANKING:
To satisfy the customers banking needs at all MCB Full Day Banking branches across the
country enjoy the convenience of extended banking hours 9 to 5, even on Saturdays.
MCB now serve the wide range of services throughout the day.
365 DEPOSIT ACCOUNTS:
365 deposit accounts is an account for the customers with substantial balances, offering
profit on daily product basis with the facility of unlimited withdrawals.
MCB LOCKERS:
MCB provides the lockers for the customers to protect the valuables documents and other
things. Lockers of different capacities are available nationwide.
MCB ISLAMIC BANKING:
MCB Islamic banking provides Riba Free and Shariah Complaint Solutions to various
customer segments in a growing number of cities. With the help of Shariah Specialists,
Lawyers and professional Commercial Bankers, MCB have the best solutions to cater to
customers needs the Islamic way.
MCB ENHANCED SAVING ACCOUNT:
MCB Enhanced Savings Account is meant for small-savers who are looking for higher
returns on their savings.

CALSSIC AND GOLD CREDIT CARDS:

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A suit of classic and Gold Credit Cards are focusing primarily on providing superior
services, convenience, safety, shopping pleasure and security that is giving a different feel
to the world of Credit Cards through innovative features. These include comprehensive
insurance plans, installment plans, reward points, upfront loyalties and much more.
MCB MOBILE BANKING:
Banking at customers finger tips. You can message any time or from anywhere to get
information regarding balance and statements. Cash withdrawal, balance inquiry and
unlimited shopping can be done by MCB mobile banking.
CORPORATE FINANCING:
Providing access to diversified financing options, including working capital loans, term
loans, trade finance services and investment banking.

MCB SABZAZAAR:
MCB Sabzazar is an agricultural financing scheme for farmers that offer financing plans.
MCB Shadabi Plan for short-term financial needs and MCB khushali Plan for long-term
financial needs. Other schemes are tractor finance scheme, Baghbani scheme, Growers
finance, Dairy and Meat Plan, Murghabi scheme, Aabiari scheme, and Mahigeri scheme.

Corporate Banking
WORKING CAPITAL LOANS:
Based on the customer's specific needs, the Corporate Bank offers a number of different
working capital financing facilities including
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Running Finance
Cash Finance
Export Refinance
Pre-shipment and Post- shipment
Tailor- made solutions are developed keeping in view the unique requirements of your
business.
TERM LOANS:
Individual can gain and benefit the most through MCB Consumer Banking. In MCB you
get friendly, efficient and attentive personalized banking services - a unique banking
relationship experienced by each MCB client.

INVESTMENT BANKING:
Our Investment Banking Team has emerged as a leading player in Pakistan's Investment
Banking arena. The Team handles advisory, corporate finance and capital markets related
transactions. Within these areas, the team has developed expertise in:

CASH MANAGEMENT:
Our network of over 900 branches in Pakistan enables us to collect and disburse
payments efficiently with our cash management services. This also enables us to offer
you a choice of paper based or electronic fund transfer solutions including collection
amounts, cross branch on- line transactions etc
MCB PERSONAL LOANS:

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MCB Personal loan is a simply a clean cash facility extended for personal use. It offers a
fixed installment loan that provides the access to cash instantly without any collateral.
Financing available is up to 5 years for amount up to Rs. 1 million.

Personal Banking
ONLINE SERVICES:
One of the largest networks of over 700 online branches in the country and are growing
with the passage of time. Providing customers with 24/7 real time online transaction
facilities.
MCB ATM 24 HOUR CASH:
MCB ATM Smart Card is accepted at over 4,500 ATMs nationwide. MCB ATM Smart
Card enables you to access fast cash, inquire account balance, transfer funds and pay
utility and mobile bills/mobile top-ups from any of over 550 MCB ATMs in the country.
Get 24-hour convenience of cash withdrawal, mini-statement, utility bill payment, funds
transfer services and much more. Welcome to a world of convenience with the MCB
ATM Smart Card.
MCB ATM Regular Card:
MCB ATM Classic Card allows withdrawal of up to Rs.15, 000 per day and a maximum
of 3 withdrawals per day per card.
MCB ATM Gold Card:
The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum
of 6 withdrawals per day per card. The cardholder has to make at least two transactions to
withdraw the full amount of Rs. 25,000.

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MUSLIM COMMERCIAL BANK

MCB VIRTUAL BANKING:


MCB Virtual Internet Banking offers you the convenience to manage and control your
banking and finances; when you want and where you want.
BILL PAYMENTS:
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone
bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security
and peace of mind.
MCB is the only bank that offers you 3 convenient options of making bill payments to
PTCL, SSGC, SNGPL, KESC, Mobil ink, Supernet, IESCO, HESCO,and Ufone. So,
save your precious time by avoiding long queues and pay your bills through MCB Easy
Bill Pay.
MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-charge their
prepaid mobile phone account through the following convenient options of MCB easy
bill pay.
MCB CAR4U:
MCB CAR4U gets you not only a car of your own choice but leads you to the best in life.
It is affordable with competitive mark-up, flexible conditions, easy processing and above
all, no hidden costs. "Kahin Na Kahin Tau Hai1 Car 4 You".
SMART CARD / DEBIT CARDS:

MCB now brings you MCB Smartcard -a secure and convenient instrument of payment
with unmatched functionalities. It provides 24-hour direct access to your bank account.

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MUSLIM COMMERCIAL BANK

The convenience and flexibility of MCB Smartcard will help you live a smarter life. It
not only helps you manage your expenses, but also eliminates undue interest on your day
to day credit card transactions. Your balance is always within your reach and you spend
accordingly.
MCB VISA:
MCB Visa is not just another card in your wallet. It not only provides the conventional
credit card services in a manner that is superior in comparison, but goes an extra mile.

Personal And Corporate Banking


CURRENT ACCOUNT
Discover the quick, easy, and convenient way to manage and use your money with an
MCB Current Account.
SAVINGS ACCOUNT:
MCB Savings Account offers you one of the most suitable ways to manage your hardearned money. So start saving and earning profit today.
BASIC BANKING ACCOUNT:
Look after your money the simple way, with MCB Basic Banking Account.

FOREIGN CURRENCY ACCOUNT:


Enjoy the confidence of operating an international account, locally. MCB Foreign
Currency Account offers you the option of earning attractive returns on your Foreign
Currency Investment.

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MUSLIM COMMERCIAL BANK

SMART DOLLAR ACCOUNT:


Discover a sensible solution that helps make more of your dollar savings. MCB Smart
Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD
Current, Savings or Term Deposits.
BUSINESS ACCOUNT:
MCB Business Account lets you build your business through the accrued savings from
discounted transaction fees, and more.
SAVINGS XTRA:
Grow with MCB Xtra by saving more and earning greater profit. MCB Savings Xtra
Account offers you a wide range of attractive profit rates.
BANCASSSURANCE:
Your policy will be selected from the most reliable insurance companies. You will feel
confident that your policy has already passed MCBs strict standards for selection
unparalleled protection. Its products are:

Dream wedding

Capital Sure

Edu-care

Life partner

Competition:
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MUSLIM COMMERCIAL BANK

The transition period is having a positive impact on commercial banks. Muslim Commercial
Bank (MCB) seems to be one of the banks capable of taking advantage of these dynamics. MCB
is the largest private bank and third largest commercial bank in Pakistan. They had been
improving over the last two years so much.
The Bank accounts for 10 per cent of total assets, 10 per cent of deposits and 11 per cent of loans
in the banking sector. It enjoys an competitive edge over smaller banks due to advantage of much
lower cost of funds and higher capital base.
MCB has CHANGED management restructuring in the past three years. MCB is now in a
position to have greater control over administrative expenses. Right sizing of staff and closure of
loss making branches will result in significant cost savings. MCB has plans to have greater focus
on consumer banking. It is probably one of the first local banks to extensively explore the
opportunities in this area.
MCB has the largest ATM network in Pakistan. It has also launched an innovative nationwide
service called MCB Switch whereby any bank in Pakistan will be able to utilize Bank's ATM
network. All MCB Switch members will also be able to use ATMs worldwide through Master
Card's International 'clients' network; MCB seems to be in an increasingly sound financial
position.
The banking competition is very stiff in market now days. To target top client is the most
important thing to do in banking and to target these clients you have to have a strong relation
with them and facing competition with many other banks like Al-falah Faysal etc

Internal Environment:
SWOT Analysis
Strengths:
One of the major strengths of MCB is that it has very stable deposit base.

MCB is largest private bank in Pakistan with more than 1000 branches domestic
(including 8 Islamic branches and over 550 ATM's) and 5 foreign branches.
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MUSLIM COMMERCIAL BANK

The bank enjoys competitive advantage and competitive profitability over other banks in
Pakistan.

MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.

MCB is Successive and Market oriented.

MCB investing huge sums on HR development and training.

Customer default rate is lower as compared to other banks.

MCB has the largest ATM network in the country.

Meeting the challenges of latest Technology by introducing Smart card remit express,
mobile banking etc.

24 hours cash access through ATM.

Easy access to the customers at their residential localities through a large number of
branches. Best and optional policies and attractive compensation packages, for
employees, which has really improved their commitment, dedication and hard work,
towards the accomplishment of banks objectives.

Conservative financial institution operated by expatriate executives.

Offers a wide variety of services to its customers and has a customer base of 4 million

The bank has efficient IT infrastructure and network of on line branches.

Weaknesses:
Decision making process is very slow.

It is not having greater no. of branches abroad.

Though ATM network is the largest in Pakistan, still some potential areas dont have the
ATM.

Some management positrons needed are not professional.

Low motivational level; non-aggressive marketing.

Employees dissatisfaction due to ill treatment and improper reward system.

Favoritism and Nepotism in recruitment.

Interest rate is very higher. A sense Insecurity of jobs, with the downsizing, among the
employees is found.
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MUSLIM COMMERCIAL BANK

Financial weaknesses i.e. excess operating cost. No training for advances in-charge.

Not many advances to agriculture sector and small and medium enterprises.

Political interference

Opportunities:

Leasing sector is growing in Pakistan for the last few years which provide opportunity to
MCB to go ahead in this area as well.

MCB is providing Consumer Finances at comparatively lower rates which paves a way to
grab more customers

Financing to small/medium cottage industries will definitely increase its advances and
profitability as well.

Islamic Trading Based Banking can enhance the business of the bank.

Targeting of Hundi/Hawalla through networking and IT potential of MCB.

Ongoing development on energy sector of the country.

Due to largest ATM network, MCB can expand its 24 hours cash facilities to the far off
cities of the growing market demand. Increasing focus/target on different types of
customers, MCB can open women branches, especially in those areas where women class
want to get involved but couldnt due to environmental restriction.

Growing policies of government on business and commerce sector provides MCB and
opportunity to efficiently meet with the business peoples requirement of instant cash and
financing facilities.

New schemes can be introduced to finance commodity operations.

The formation of new and energetic marketing teams can increase the disbursement of
loans and new customers can be searched out.

Low exposure to consumer banking providing opportunity to explore the segment.

Threats:
Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL,
Alfalah, HBL etc.

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MUSLIM COMMERCIAL BANK

For the last of many years, Pakistan is facing economic and political instability which is a
big threat.

Foreign banks are flourishing in field of consumer financing.

People dont prefer banking culture.They mostly prefer cash transactions.

Increasing foreign banks in the country.

Privatization of other domestic banks has also increased their services.

Highly specialized and attractive services provided by foreign banks to their customers.

Inconsistency in government policies regarding to business and economic sector.

Growing global technological advancement.

Slower economic growth rate of the country.

Return on deposits is very low.

Inflation rate is high.

GNP and GDP rates are low and so the savings are low.

Decline in private and public sector credit due to tight monetary policy.

Participation of foreign banks in local market that can hurt the market share.

Mergers & acquisition activities (M&A) consolidating the banking sector and MCB is
also vulnerable to it.

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Human Resource Management:

Activities performed by HR department:


Establishing Policies for Human Resource
Human resource planning and forecasting
Aligning employees work with the banks goals.
Performing Job analysis and developing JD and JS.
Recruitment.
Orientation and Training.
Performance appraisal
Compensation management
Setting pay plans
Employee benefits
Reward and Recognition programs
Establishing and maintaining workforce relationship
Communicating organizational goals and strategies

HR Department Hierarchy:
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Branch
HR Manager
(Bilal Khosa)

HR Manager
Assistant
(Nouman
Raza)

HR Manager
Assistant
(Faisal
Rameez)

Strategic Human Resource Management


Branch HR manager have to be very conscious about the employees performance. HR manager
strictly need to

Job Analysis
Job analysis is every important as job analysis information is used in Selecting and recruiting,
compensation, performance appraisal, training and in resolving other issues which MCB faces.
They mostly collect job analysis information through observation, questionnaire and interviews.
These entire tasks are performed by HR manager assistants.

Recruitment and Selection Procedure:


The recruitment process followed by MCB HR department is clearly understandable by the
following diagram.

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The procedure starts with the requirement of job, they analyze and identify candidates of
their interest that full fill their requirements specified by JD & JS. Then the pre-screening
process undergoes. Screening focuses on creating a qualified pool of candidates to share
with the hiring manager. Common activities include resume/application reviews for select
qualifications, supplemental questionnaires, and formal testing. After pre-screening and
short listing, they call candidates for test and interview. A panel of interviewer conduct
interview of the candidates. The interview content is very complex and covering all
factors that they need to evaluate before hiring a person for job. Like they identify
candidate's behavioral aspects, e.g; if he/she face a situation where he/she have to deal
with the annoyed customers? what was his/her reaction? etc.

Similarly they took

cognitive test to identify person's intelligence level, knowledge regarding banking and
achievements since yet etc. Then they did the back ground investigation and physical
exams.
For executives and higher level posts, 90% of recruitments were made from leadings and
foreign banks and the other lower levels posts were filled with professionally Qualified
candidates i.e. MBAs , M. Coms, Computer Programming etc from well recognized
National and international universities.
Sources include internal hiring as well as external hiring. External hiring mostly done in
case of new or low or middle level positions in banks. The job posting mostly done by
using the sources like newspaper, website, social media and magazine of Lahore chamber
of Commerce. They also engage with placement agencies sometimes for the
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recruitment and pay them for this

task. The selected candidates come from this source

are no further interviewed from the HR department of the Bank. While Internal hiring
mostly done on the basis of

performance and promotion if there a higher post get need

to fill, In this case, instead of hiring a new person, they prefer to hire existing employee
who know the bank's culture and everything about it and have experience with the bank.

Orientation and Training Development:


After selection, orientation is conducted for selected employees where all new recruits are
provided with the background information about MCB. Mostly in orientation, they provide
information about employee's benefits, personnel policies. The daily routine, organization and
operations and Safety measures and regulations. These are the basic info that provided to new
recruits in the time of orientation.
After orientation, new recruits do On-the-Job Training (OJT). Bank assign them task under
coaching of professionals who trained them and assign task to them on the daily basis.
Managerial level trainees work direct with the senior management or with who he/she is going to
replace.
For existing employees, the training programs are offered for different purposes. For example, in
Feb 2014, relation building workshop has been organized for the every employee in the bank and
provide certificate to them as well. Old employees are also trained through this method like when
some new innovation is introduced, old employees are trained in order to learn and handle that
new innovation. All senior managers have been trained to operate Misys Software (Automation
of service provision and book management) in 2008 and relation building workshop in 2014.
Job rotation is also done at the managerial level in order to keep them motivated and allow them
opportunities to learn and experience more and diversified things.
It is obligatory for each employee of the Bank to attend at least one training course (of a
minimum duration of one full day) in a calendar year. MCB uses following programs for training
and development

Management Trainee
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Management associate

Cash officers

Internships

Performance Appraisals:
HR manager set departmental goals with the help of departments heads. Supervisory staff is
evaluated by the Branch Manager and Units Heads directly. When observed an employees
performance, supervisor usually makes a judgment about whether that performance is acceptable
or not.
The process of appraisal process is modified, improved and upgraded with the passage of time
with the banks requirements. HR department notifies all units of the Bank of the PA system and
procedure currently in use. Branches are notified deadlines for goal setting, form filling,
monitoring and final appraisals.
The increments in sales are based on performance evaluation of employees annually. Grade
promotions are based on:

Availability of higher position


Employees ability to fill those positions
Sustain high performance during last few years

This decision has been taken in second quarter of each year.


Performance appraisal tool that is used by MCB is ACR (Absolute Category Rating) which
contain information such like the employee background, nature of his work, performance of
employee, performance rating as compare to evaluation factors and recommendations. A branch
manager writes the ACRs of employees in his branch, regional manager writes the ACRs for the
various branch managers working under him. These ACRs are sent to the Gm office from where
they are forwarded to the human resource division.

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Compensation Management:
MCB awards their employees compensation in return of their tough mental labor. Apart from
basic salaries they are offered many other benefits like:
o Utility Allowance,
o Medical Allowance
o Overtime Allowance
o Education Allowance
o House Rent Allowance
o Bonuses
o Cash Prizes
o House Building Loans
o Non Interest Loans

Employees, who pass IBP part 1 exam in first attempt, are offered Rs.60, 000 cash prize or two
increments. Employees those who pass part 2 exams are offered Rs.100, 000 or three increments
and those who pass both examinations within one year of training are promoted to OG 2, and
those who get the gold medal in the exam, are promoted to OPERATING GRANT.

Health and Safety Conditions:

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Employees are specially get training regarding health and safety conditions in which instructor
provides them all kind of information and tips to get healthy. They also informed about
emergency issues and their solutions. Fire extinguishers and other emergency tools are ready
available at every branch.

Career Management:
The career of employees developed after working Pakistans best bank. In MCB, employees get
trained very well and bank compensate them with educational allowances and arranging
workshops and training programs for employees which made the employee comparable more
professional, knowledgeable and experienced than all others. One of HRD's key responsibilities
is to encourage growth and career development of employees by coaching and by helping
employees achieve their personal goals in our organization and beyond that.

Flaws in HR practices:
As such our study about MCBs HR department practices, there are not such kind of flaws that
important or highly concerned. As they are having best HR expertise and using best HR
practices, strategies and tools in order to utilize best their human resources to achieve goals. The
one problem that was high in past few years is the turnover rate of employees after getting
experience from the bank. Due to growth in the banking sector, those employees get jobs in other
banks. So this is the major problem for MCB as per their practices.

Recommendations:
MCB is also did work to reduce turnover by doing some strategies. They increase the incentive
and benefits plan for employees as well as providing them solution of their problems. They
started to involving employees into different events and activities. Multinational banks are
moving rapidly to our banking industry and if MCB will not adopt new procedures, the

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productivity can suffer. The solution that we are proposing is to use the job-rotation technique for
employees so that they work in new environment and learn and experience more and diversified.

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