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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
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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
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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 Bank Al-Falah Limited Bank Al Habib Limited Askari Bank Faysal Bank Limited Metropolitan Bank Limited • • • • • MCB Bank Limited ABL Pakistan Atlas Bank Habib Bank Limited Saudi Pak Bank Ltd

Brief Introduction of the Organization
Competitors
• • • • • •

Foreign Banks
•Habib Bank A. G. Zurich •Corporation •Mashreq Bank PJSC •Oman Bank •Standard Chartered Bank

ABN Amro Bank Al Baraka Islamic Bank American Express CITI Bank Deutsche Bank Doha 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. 4. 5. 6. How to perform Billing of Receipts How to pursue Billing Account of Account Holder How to post the balance after Billing 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 Total compensation

Manager people & Organizational development

Manager Labor relations

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 Screening by Software Entry Test and Initial Interview Preliminary Interview Selected Candidates HR Interview

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 8. Flexibility 1. Discipline and Punctuality 9. Loyalty and Devotion 2. Initiative and Drive 10. Fitness 3. Team Spirit 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. 2. 3. 4. 5. Professional Knowledge Improving Corporate Culture Decision making ability Ability of visualize and plan 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 •Commissions •Overtime Pay •Bonuses, Profit Sharing, Merit Pay •Stock Options •Travel/Meal/Housing Allowance •Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes

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