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VIRTUAL UNIVERSITY OF PAKISTAN

STUDENT NAME
mc06040
MBA
HRM
Brief Introduction of the
Organization
Overview of National Bank
1- NBP maintains its position as Pakistan's Premier Bank
2- It is the major business partner of the Government of
Pakistan
3- It specially emphasis on fostering Pakistan's economic
growth through
a ) Aggressive
b ) Balanced lending policies
Continued
Brief Introduction of the
Organization
Overview of National Bank
4- The Bank also handles treasury transactions for the
Government of Pakistan as an agent to the State Bank
of Pakistan .

5- It operates 1,243 branches in Pakistan and 18


overseas branches
( Source : www.nbp.com.pk)
Brief Introduction of the
Organization
Business Volume
• Non Interest based income shows impressive increase of
about 3.7 billion Rupees.
• Administrative expenses increase by 25 % due to training
facilities development.
• Credit rating maintained at AAA by JCR Credit Rating
Agency.
• It has assets of 350 Billion Rupees

Continued
Brief Introduction of the
Organization
Business Volume
5. It follows the International Accounting Principles ,
Islamic Accounting Principles and regulations of
Institute of Chartered Accountants of Pakistan

( Source: NBP Quarterly Report September 2008 Pg No 9-10)


Brief Introduction of the
Organization
Competitors

Public Sector
• First Women Bank Limited FWB
• The Bank of Khyber KB
• The Bank of Punjab BOP
Brief Introduction of the
Organization
Competitors
Private Sector
• My Bank Limited • MCB Bank Limited
• Bank Al-Falah Limited • ABL Pakistan
• Bank Al Habib Limited • Atlas Bank
• Askari Bank • Habib Bank Limited
• Faysal Bank Limited • Saudi Pak Bank Ltd
• Metropolitan Bank
Limited
Brief Introduction of the
Organization
Competitors
Foreign Banks
• ABN Amro Bank •Habib Bank A. G. Zurich
• Al Baraka Islamic Bank •Corporation
• American Express •Mashreq Bank PJSC
• CITI Bank •Oman Bank
• Deutsche Bank •Standard Chartered
• Doha Bank Bank
Brief Introduction of the
Organization
Competitors
Specialized Banks
•Zari Tarqiati Bank Ltd.
•Industrial Development Bank of
Pakistan
•Punjab Provincial Cooperative Bank
Limited
Organizational Hierarchy
Chart
Hierarchy Of The Organizational Structure
PRESIDENT

BOARD OF DIRECTOR

MEMBER EXECUTIVE BOARD


REGIONAL CHIEF

ZONAL CHIEF
BRANCH MANAGER
Organizational Hierarchy Chart

Head Office
Organizational Hierarchy Chart

Jhelum
Branch
Hierarchy
Training Program

I was selected to do my internship in National Bank


of Pakistan. I followed the training programme in
these Departments

• DEPOSIT DEPARTMENT
• CLEARING DEPARTMENT
• BILLING DEPARTMENT
• ACCOUNTS DEPARTMENT
Training Program
Tasks in Deposits Department
I was giving tutorial on the deposit department about :-
1- How to collect deposits from customers
2- How to pursue customers
3- Introduction to Customers

I worked on following types of deposits offered by National Bank


7. Current deposit
8. Saving bank deposit
9. Profit and loss saving account
10. Fixed deposit
Training Program
Tasks in Clearing Department
I was giving tutorial on the Clearing department about :-

• How to perform Clearing of Instruments


• How to pursue Outward and Inward Clearing
• How to post the balance after Clearing
• Advantage of Clearing House
• Function of Clearing Department
Training Program
Tasks in Clearing Department

I worked on following types of Clearings in National Bank

4. Inward Clearing ( Same Branch )


5. Outward Clearing ( Another Bank)
6. Clearing House
7. Scrutiny of pay in slip
5. Procedure after scrutinizing
6. Procedure of clearing at clearing house
Training Program
Tasks in Billing Department
I was giving tutorial on the Billing department about :-

3. How to perform Billing of Receipts


4. How to pursue Billing Account of Account Holder
5. How to post the balance after Billing
6. Functions of Billing Department
Training Program
Tasks in Billing Department
I worked on following types of Bills in National Bank

3. Inward Bills for Collection ( Demand Drafts )


4. Outwards Bill for Collection ( Treasury Bills
Documentary bill, Pay order)
Training Program
Tasks in Accounts Department

I was giving tutorial on the Accounts department


about :-

4. How to maintain Journal of Accounts


5. How to maintain Vouchers System
6. Functions of Billing Department
Training Program
Tasks in Accounts Department

I worked on following types of Accounts in National


Bank

• General ledger
• Statement of daily affairs.
• Cash book or Cash cum day book.
• Transfer book
• Income and expenditure ledger, etc.
Structure of HRM
Department

DEPARTMENTAL HIERARCHY
Vice president
Human Resources

Manager
Manager people & Manager
Total compensation Organizational Labor relations
development
HRM Process in the
Organization
HUMAN RESOURCE MANAGEMENT PROCESS IN
THE ORGANIZATION
National Bank of Pakistan has an existing Human Resource development
department, which operates to:-

• Increase the existing skills of the people existing


• New people coming in the organization

In order to achieve its objectives in a more efficient and effective manner


HRM Process in the
Organization
HUMAN RESOURCE MANAGEMENT PROCESS IN
NBP
The HRM process consist of the interrelated activities in National Bank
like :-

• Recruitment
• Selection
• Training
• Compensation and supervision

When applying the process diversity, labor laws and privacy is


considered
HRM Process in the
Organization
Human Resource Planning and Forecasting

Organizational Study

• To Determine the organizational mission


• Scan the organization environment
• Set strategic goals:
• Formulate a strategic plan
• Course of action is designed
HRM Process in the
Organization
Human Resource Planning and Forecasting

These are steps of Planning process in NBP

• Determining the objectives


• Defining skills required to meet objectives
• Determine additional human resources
requirements
• Develop action to meet the anticipated HR
needs
HRM Process in the
Organization
Human Resource Planning and Forecasting
Forecasting

• Zero- base forecasting

This method uses the NBP’s current level of employment as the starting point for
determining future staff needs in NBP

• Bottom- up approach
It is a forecast method in which each successive level of the NBP, starting with the lowest
and forecast its employee requirements in order to ultimately provide an aggregate
forecast of employment needs.
HRM Process in the
Organization
Human Resource Planning and Forecasting

Forecasting

• Use of mathematical models

Mathematical model also use for forecasting HR requirements. It defines relationship


between demand and the number of employees needed

• Simulation

It is a technique for experimenting with a real world situation through a mathematical


model representing that situation
HRM Process in the
Organization
Employees Recruitment & Selection
Preliminary CV
Entry Test Preliminary Interview
Screening by HR Interview
and Initial Interview Selected Candidates
Software

Final Panel / Group Interview

Selection & Offer

NBP Recruitment Process


HRM Process in the
Organization
Training & Development
NBP has devoid Two basic training techniques
• First is related to the training and development of
mid term plan, regarding new & middle level
employees
• Second, the training & development for long term
plan, regarding the career development of higher
level employees
HRM Process in the
Organization
Training & Development
• NBP applies on-job and off-job strategies to train its
employees
• NBP training & development academy advises Job
rotation to ensure & facilitate the producing of all
rounder
HRM Process in the
Organization
Training & Development
•The training plan is started at least 2 months before
the commencement of New-year, in order to make it
easy for the socializing and orientation of the new
employees

•NBP believes in pre-post training test for existing


employees & post training test for new employees
HRM Process in the
Organization
Performance Management
In personal traits evaluation there are ten things

1. Discipline and Punctuality 8. Flexibility


2. Initiative and Drive 9. Loyalty and Devotion
3. Team Spirit 10. Fitness
6. Intelligence
5. Honesty
6. Interpersonal Relationship Skill
7. Creativity and Innovations
HRM Process in the
Organization
Performance Management
And in performance factor there are also ten things

1. Professional Knowledge
2. Improving Corporate Culture
3. Decision making ability
4. Ability of visualize and plan
5. Ability to act on emergent situation
HRM Process in the
Organization
Performance Management
6. Ability to implement decisions
7. Ability to guide and create team work
8. Communication Skills
9. Customer Relationship
10. Acquaintance with technological improvement
HRM Process in the
Organization
Performance Management
Performance Evaluation

• An employee has not any right access to his/her Annual


Confidential Report, but s/he will be informed; so that s/he
can correct/improve/rectify himself/herself from his/her
weaknesses if s/he has any.
HRM Process in the
Organization
Performance Management
• After
finishing the Annual Confidential Report (ACR) in
paper HR department enter those reports in the
database

• On the Basis of Evaluation Benefits are offered in terms


of promotions, rewards etc
HRM Process in the
Organization
Compensation , Benefits and Types

Different types of compensation includes

•Base Pay •Benefits including:


•Commissions dental, insurance,
•Overtime Pay medical, vacation,
•Bonuses, Profit Sharing, Merit Pay leaves, retirement,
•Stock Options taxes
•Travel/Meal/Housing Allowance
HRM Process in the
Organization
Organizational Career Management
Promotion
The criteria for promotion to a specified post usually merit-cum-seniority. A
person will be eligible for promotion if :-

•Satisfactory records of service


•Meets the criteria for promotion
•Clear recommendation for promotion in his/her ACR

If there is any departmental proceeding in underway against him/her or any


penalty other than censure or warning has been imposed on him/her within
the last three years then the employee will not be promoted.
HRM Process in the
Organization
Organizational Career Management
Demotion / Expulsion

The Organization Rules are set and handed over to the employee during the
joining process.

• The Person is Demoted to lower rank if the performance required remains same
for three years
• Sometimes Persons are not demoted but higher post may be created in the
organization to the change the status quo of demoted employee

•The Person may be Expelled on the course of bad conduct in law, convicted by
law , fraudulent activities
HRM Process in the
Organization
Organizational Career Management
Resignation

• When an employee wants resignation, he has to apply in Human Resource


Department. He should notice Human Resource Department three months before
he resign. If he fail to inform three months before then he has to pay three months
gross salary amount

• After an employee applying for resignation Human Resource Department will


query all the branches that the employee has any transaction with any branch or
not. If the branches reports are ok then the Head of HRD approve his/her
resignation and send to the employee’s Branch Manager
HRM Process in the
Organization
Organizational Career Management
Retirement

• HR Department writes to employee CC line manager advising retirement date


• Line manager arranges informal meeting with employee to discuss plans and
confirm right to request continued working.
• Line manager writes to employee confirming meeting CC HR.
• Employee chooses to retire at 65.
• Normal retirement procedures apply
HRM Process in the
Organization
Labor management Relations
The Society for Labor welfare is formed within the NBP which functions
with the help of mismanagement so form a good cohesive relationship and
provide

1- To provide immediate relief to any accidental causality

2- Provide some benefits to the heirs of the on job deceased

3- Arranges Variety Shows for the families of the Employees

4- Arrange Educational funds or Benefits for the Employees


Critical Analysis
•Practicing Human Resource Knowledge Effectively
• Train Staff with latest IT tools and Knowledge
•Improve General Banking Facilities
•Change the Mind of Old Employees to Adapt IT
•Unclear Brand Image of Bank
•People Think it as Govt. Bank with Lack of Facilities
•Lack to Handle Foreign Exchange
•Customers wants fast and innovative services
•HR management is less existent
•Motivational Tools are not followed
•Promotion of employees is not done regularly
SWOT Analysis of NBP

STRENGTHS

3. Financial Strength
4. High Percentage of Gross Profit
5. Large number of Branches
6. Govt. Support Image
7. Huge Assets
8. Large Number of Govt. Deposits
SWOT Analysis of NBP

WEAKNESSES

1- Traditional Approach
2- Lack of IT Infrastructure
3- Burden of Running Extra Branches
4- Lack of Modern Banking Products
5- Low No. of Online Branches
6- Inside Recruitment ( Not on Merit)
7- Weak Customer Handling
SWOT Analysis of NBP

OPPORTUNITIES

1- Electronic Banking
2- Micro Finance
SWOT Analysis of NBP

THREATS

1- Retail Banking Overload


2- Administration Cost
3- Financing Cost of New Projects
4- Focusing only on Govt. Deposits
5- Ignoring Customers Needs
6- Fail to Float new Products Successfully
7- Untrained Staff hurting the image
Conclusion

After the completion of my internship report I draw the


following Conclusions :-

1. NBP’s process of sanctioning advance is lengthy


2. NBP’s staff members are not Comparatively well trained
3. NBP’s HR Management is Poorly Working
4. NBP’s pay large amounts on administration cost
5. NBP’s Customer handling is poor
6. NBP’s record on paper is awesome but it lacks the latest
banking techniques and technology
Recommendations
Areas Where Improvements is to be needed

3. Internal & External Audits


4. Communications Skills
5. Aggressive marketing strategies in banking
6. Institutionalization of Human Resource Management
7. Research and Development facilities should be improved
8. Look into Scope of Investment Banking
9. Stop Money laundering and white-collar crimes
9. General working conditions ought to be improved
Thank You

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