BAHRIA UNIVERSITY

DEPARTMENT OF PSYCHOLOGY

FINAL PROJECT

PRINCIPLES OF MANAGEMENT (MGT 111)

SUBMITTED BY: Ayesha Nuzhat Ansari (01-171192-007)

Hooria Huda (01-171192-013)

Maryam Javaid (01-171192-025)

Simran Mohan Kumar (01-171192-037)

CLASS: BS Psychology 4A

SUBBMITTED TO: DR. SUMERA IQBAL

DATE: May 23, 2021

Principles of Management Page 1

 TABLE OF CONTENTS

INTRODUCTION............................................................................................................................................3

MISSION STATEMENT OF THE ORGANIZATION...............................................................................3

OBJECTIVES..................................................................................................................................................3

MANAGEMENT HIERARCHY....................................................................................................................4

INTERVIEW QUESTIONS............................................................................................................................4

PLANNING...................................................................................................................................................4

ORGANIZING.............................................................................................................................................8

LEADING...................................................................................................................................................10

CONTROLLING........................................................................................................................................12

CONCLUSION...............................................................................................................................................14

Principles of Management Page 2

INTRODUCTION

For the purpose of this project, the National Bank of Pakistan (NBP) was chosen as the organization our
group would like to work with. The National Bank of Pakistan is a financial institute established in
November of 1949. The major services provided by National Bank of Pakistan are those of deposits, loans,
corporate investments along with other welfare projects on behalf of the Government of Pakistan. All
actions are executed keeping in mind their vision of being recognized as a leader and a brand synonymous
with trust, highest standards of service quality, international best practices and social responsibility.

The interview regarding managerial functions and their practical application was conducted with the VP and
Branch Manager of National Bank of Pakistan, Malir Cantt Branch in Karachi; Lyaqat Ali Sheikh. Sir
Lyaqat has been attached with National Bank of Pakistan since 1996, with more than 22 years of experience.
His duties as a Branch Manager include overseeing the duties of around 10-20 people who are organized
into different sections such as public dealing, bank office, operations etc. 

MISSION STATEMENT OF THE ORGANIZATION

National Bank of Pakistan will aspire to the values that make NBP truly the Pakistan Nation’s Bank, by:
 Institutionalizing a merit and performance based culture;
 Creating a distinctive brand identity by providing the highest standards of services;
 Adopting the best international management practices;
 Maximizing stakeholders value;
 Discharging our responsibility as a good corporate citizen of Pakistan in countries where we operate.

OBJECTIVES

 To enhance profitability and maximize NBP share through increasing leverage of existing customer’s
base and diversified range of products.
 To become the nation’s best bank
 Governance: Responding to organizational challenges. 
 Response: Emergency response to the health and financial crisis amidst the COVID-19.
 Agility: Making the Bank stronger & resilient. 
 Service: Serving our customers and communities. 
 Performance: Delivering sustainable financial performance.

Principles of Management Page 3

MANAGEMENT HIERARCHY

INTERVIEW QUESTIONS

PLANNING

 Please give us an outline of what your planning process looks like. Who is responsible for
setting strategic plans?

- The top management makes and designs the plans regarding staff handling and major issues
however, since we work in the field and have direct contact with the customer, we know what the
customer wants and their specific requirements. Therefore, we send suggestions to top management
recommending a change in plans if we think it is more feasible for the client. These suggestions are
considered and contemplated by the higher management in the head office who give their input on
the suggestions and make decisions for the official plans. 
Principles of Management Page 4
  How are these plans communicated to the employees? 

- All of the employees are assigned duties relating to the goals communicated through the top
management. These duties are communicated through different tools of communication such as
email, whatsapp, mobile phone. In this way, the customers are kept in the loop throughout the whole
process so that the way they deal with customers is efficient and has quality. 

 Do you have more formal or informal plans? How do you think they are suited to different
situations?

- All plans are formal and written in a document approved by higher authority. However, since the
staff are experienced and do these things on a daily basis, they know how to deal with and answer
customers if they ask questions about profit rate or investment information, therefore they do not
need to check with the formal plans again and again. 
Formal and informal plans are definitely suited to different situations. Since theory and practicality
are so different, we tactfully and flexibly deal with situations that we think cannot be handled by
policy so that we can satisfy the customer while also following the rules. 

 How do your plans reflect your short term and long term priorities/goals for the branch?

- We have both short term and long term plans in place however, in terms of National Bank of
Pakistan we usually handle and focus on long term plans more for example having the customer get
investment plans in the future so that we can keep dealing with a customer for the maximum amount
of time. 

 Do you usually have specific plans or directional, more flexible plans? 

- Most of our plans are not fixed, they keep changing according to the situation. 

Principles of Management Page 5

  How do environmental uncertainties such as the current COVID-19 pandemic affect your
plans or how your plans are formed? 

- COVID-19 has affected us greatly since we are now faced with a health risk which is why we had
to adjust to and design many new plans. It’s also the duty of the manager to take care of the staff’s
health and ensure the proper following of SOPs presented by WHO. It has affected our business as
well since it has disrupted the flow we had before and reduced our walk-in customers. Furthermore,
we have decreased the market rates as well as the salaries of employees. However, in turn we have
given them more relaxation in their duties. 
I think these plans were not implemented as speedily as they should have been but still we tried to
introduce these plans as soon as possible to ensure the safety of our customers and employees. 
 
 How do the following dimensions of organizational culture affect how the branch plans are
made? 
 Attention to detail

- The plans communicated to us are very detailed and tell us even the smallest details about
how to deal with customers and carry out our duties. 

 Outcome orientation

- Although the long term outcome such as in 6 months or 1 year is very important to us; we
analyze our assets and the investments received to decide the salaries, allowances and profit
of the branch, these are all important outcomes for us. However, we also put a lot of focus
into the process of how these goals are achieved such that we do not do wrong for the public
and receive profit with reasonable means, keeping in mind public welfare. 

 Team Orientation

- Even though everyone has separate duties, this is not possible without teamwork. We also
assign everyone duties in teams such as one person will attend the customer, another will
handle their payments, and another will deal with the administration process. These kinds of

Principles of Management Page 6

 tasks are not proper without a smooth teamwork which is why we place a lot of importance
on it as well. 
   
 How do stakeholders and CSR affect the planning process?

- We definitely keep in mind public welfare and the betterment of our customers when making or
implementing our plans. We use our CSR team to determine a balance between our profits and our
social responsibility. 

 What do you think is the efficiency and effectiveness of your plans and goals?

- I believe the efficiency of our plans and our team is very good. It’s not excellent due to the high
load on our shoulders but our plans let us deal with our customers in the best way possible which is
why I think they are very efficient and effective. 

Overview:

The planning and goal setting in NBP is done through a mix of the traditional goal setting as well as the
Management by Objectives (MBO) method since the final authority for plans is in the hands of the top
management whereas the subordinates are allowed to send in suggestions or their own inputs for the plan
setting process. The employees are kept in the loop in the decision making process and these decisions and
plans are communicated to them through different channels for example, face to face, through social media
etc. 

These plans are formal i.e. written in a document approved by the higher authorities however since the
employees are experienced by working in the field, the plans are not needed to be referred to every single
time nor are they followed to a T every time. The plans in the branch are thus flexible and activities are
changed according to the situation. This enables NBP to adjust their plans and activities according to
environmental changes as well such as the COVID-19. The pandemic resulted in NBP changing many of
their plans regarding the working schedule, the importance of following health standards, as well as how to
conduct their business. 

The plans passed on to the branch are very detailed and focus more on the long-term aspects of what the
branch must achieve on behalf of NBP. They emphasize the significance of teamwork within the employees,

Principles of Management Page 7

whether it’s when forming actionable plans or executing those plans. The plans for NBP hold outcome and
mean orientation in a balanced importance, since the achievement of their end goals are necessary but they
believe that the means of achieving these plans should be in a way that serves the public welfare as well.
Hence, CSR is a major domain that is considered when planning to ensure the satisfaction of customers.

ORGANIZING 

 How do you manage the employees in each department?

- We manage our departments through managers and supervisors who are assigned duties
accordingly. The employees abide by the rules to maintain discipline at work. This job is undertaken
by the manager. But of course, the employees are only to abide by the rules of the company. It isn't
like the employees take the manager's words as final or do whatever he says. They are to follow only
the instructions as provided by the company guidelines.

 How do you manage your time effectively for the long run especially during COVID-19?

- In the present time, with an entire pandemic going on, we are facing difficulties dealing with
certain matters. We work under a very tough schedule because of the time restriction. Since the bank
is an institution that cannot be closed down for its smooth functioning, we are following all the SOPs
as provided by the WHO. This is for the safety of the clients and the working staff of the bank.
Sanitizers and gloves are provided to strictly follow the SOPs and health guidelines. Moreover, our
bank is sprayed with disinfectant on a weekly basis. But the fact is that pandemic has surely
disturbed the normal routine and working of the bank.

 Do Staff Appraisals reduce absenteeism?

- We give out appraisals based on different scales, for instance employees who are on our excellent
scale are usually the ones who complete their working hours and give the best output in terms of
their work. We give such employees appraisals. 

Principles of Management Page 8

 If we have around 20-25 employees working under us then we give appraisals to a total of 15%
which also depends on their performance. 
And about reducing absentees, we make sure that our staff is working under a good environment
which has a positive effect on their work performance. We also make sure that our employees have
friendly working hours and quality lunch breaks so that they do not tire themselves out.  We also
assure that our employees are dealt with professionally in a positive manner in order to reduce
absentees. We also provide our employees with side activities.

 How are the resources of your organization managed?

- In resource management, first of all I would like to mention that we have two types of expenses.  
First are our personal expenses which are basically entirely related to our employees such as their
salaries, their appraisals and others. The second type is basically other expenses that go into our
company utilities. Such as electricity bills and all the other utilities that are utilized at our institution.
Apart from all these expenses we also have to pay a net profit, so this net profit is managed through
the reasonable interests on loans.

 How do you manage the money supply?

- Regarding our money supply management the guidelines are properly documented and these are
called the Standard Procedural Manual. In this SPM details regarding every single task and every
single procedure are present. Through this manual, we implement all the instructions provided, but
since of course situations change so do the instructions so we are informed regarding them through
the circular.
 Do you manage workshops for employees?

- We organize workshops to better prepare our employees. At times, as a manager, I feel that our
work lacks clarity, so in such a case we call a meeting to address such issues. In this meeting
different plans are put forth for better results in the work. So that we communicate our strategies and
plans in the best way possible and that there is clarity in our instructions.

Principles of Management Page 9

  What have you done to encourage an employee-oriented culture that emphasized employee
involvement, engagement, and empowerment?

- Our employees are empowered through several ways such as giving out awards, appraisals and
providing them a quality, hygienic environment to work in. This is done in order to guarantee that
our employees work under a positive influence and give a quality performance. Other than this, we
counsel the employees who tend to have weak mental capacities. This is done to strengthen our
working unit and to present our best image to the public. So we basically prepare our employees for
the best by resolving the issues that they face.

Overview:

NBP is a well-known company that successfully manages its staff, capital, and clients. To begin, the
manager gave us an overview of how workers in and department are properly supervised and disciplined.
Employee satisfaction and well-being are NBP's top priorities. They are regularly evaluated and rewarded in
order to ensure optimal participation. Second, they adhere to strict SOPs during COVID periods to ensure
the safety of their employees and customers. They handle their capital and money supply as efficiently as
possible in order to achieve net profit. They follow all laws and regulations set out by higher authorities.
Finally, they have a welcoming, safe, and sanitary work environment for their employees. They still keep a
close eye on the performance of their staff and provide proper guidance.

LEADING

 Do you consider that directing/leading people is the most challenging part of management?
 Leading people is certainly a very challenging task. A team leader plays the role of guiding his team
so that they can efficiently complete a task. A leader overlooks all processes and needs to be
involved in multiple environments at the same time while an employee simply finishes their own
tasks. For example, right now I am answering your questions but I am also helping my team
members keep a check on our ATM machines and other services through whatsapp. A leader plans it
so that the team under him understands the assignment respectfully and politely according to the
rules and regulations of our company.

Principles of Management Page 10

  How do you motivate your employees?

 In order to motivate my employees I assure that throughout their 8 hours at work they have a positive
environment to work in. This really motivates my employees as they feel as though they are being
considered and their levels of energy are being considered as well. I make sure they don’t feel as if
they are lacking anything they might need, and neither do I want them to feel burdened by their
work. I assure that the furniture they use is comfortable and nice and get the office cleaned. There is
always enough supply of snacks, tea and coffee and ample tea breaks and lunch breaks as well. And
most importantly I make fun and light jokes with my employees to lighten the mood. 

 Do you think you are reinforcing your employees positively to praise them?

- Our company offers a lot of benefits to reinforce good performance on their end, these include: 

1. Fixed benefits - these are received by everyone equally such as salaries, medical insurance, bonuses
for Eid or an annual bonus. 
2. Appraisal benefits - these refer to the act of assessing someone or evaluating them to decide whether
they deserve a bonus. For example:  some organizations organize cash rewards as incentives,
promotions are also merit based and performance based. These kinds of benefits come under
appraisal benefits. 

 Do you regard coordination as the essence of management for achieving harmony among
individual efforts towards accomplishing group targets?

- Nothing is possible without coordination and teamwork. If each employee decides to follow their
own sense of rules and are left to their own devices, no goals would be achieved as everyone’s
attention would be heavily diverted. Previously, we only used to make sure that we coordinated with
our employees weekly or monthly. Now, however, we make sure to be well connected and
coordinated with our employees constantly. To ensure the goal has been communicated to each
individual employee clearly. 

Principles of Management Page 11

Overview:

Leading people is certainly a very challenging task. A leader overlooks all processes and needs to be
involved in multiple environments at the same time while an employee simply finishes their own tasks.
Employees need a positive environment to work in To keep them motivated their workplace should be clean.
They should get lunch/tea breaks with light jokes. There are fixed benefits which every employee gets. And
then there are appraisal benefits granted to those who deserve in the form of bonuses, promotions etc.
Teamwork is the main essence of working together.

CONTROLLING

 What is the most important part of management control? 

- The most important part of management control is your attitude towards the people. We must treat
all clients with respect and patience, even our own staff. Staff can be seen as the internal customers
of a company. It is our duty to facilitate them and give them a good environment so they can in turn
do a good job dealing with the customers. This helps in satisfying our actual customers who can then
bring us more customers due to their enjoyable experience with us.

 How does the company deal with a change in market demand?

- This is a really good question! Market demands change very often and the company makes
amendments quickly to keep up with them. Our higher management directly monitors national and
international markets and world trends and we also take into account the experiences of our
employees and the recommendations sent in by our regular customers to better adapt to changes
within the markets. This is all very important in order to stay above our competitors in the market
and give our customers what they want from us.

 If your performance has not met the standard set, then how can your leadership style change
in order to improve the performance?

Principles of Management Page 12

  The lack of good performance of my employees can be due to three different reasons; 
1. Personality of the Employee - the natural predisposition of an individual is important to
consider. Sometimes we have employees that are very motivated but are naturally very slow
and take a little longer to understand the task. It isn’t their fault and we appreciate their
enthusiasm to learn and get their job done, in that case I make sure to counsel them and teach
them. I spend extra time with them and if I hit a wall with them due to their limitations, I try
to make sure I can still keep them around by giving them tasks more appropriate to their
abilities that I know they’re capable of doing. 
2. Motivation of the Employee- There are some employees that don’t want to try to do their
work. I make sure to inform higher management about the employee and about how they will
not change, I do my best to assure that employees that drag the company down could get
transferred or fired as they are simply not fit for the job.
3. Bad Apples - There are some employees that have no respect for any rules and regulations at
the company, these employees go out of their way to sabotage the work performance of
others by violating our code of ethics. This type of employee is immediately fired on the
spot!

 What is the span of control within NBP as an organization? 

 According to the branch manager at NBP branch in Islamabad, one manager controls the entire
operating staff with the help of an assistant manager, therefore the level of management is limited to
very few managers and teams.                     

 What kind of control techniques do you apply to your work environment? 

 We use a few different techniques: 

1. The company makes sure to keep the employees motivated by rewarding them with benefits
to control levels of motivation. 
2. We also impose restrictions such as fines and termination to the ignorant employees to have a
grip and control over the work environment.

Principles of Management Page 13

 3. We make sure to define the duties of each employee according to their skill levels and
equalize the workload for a smooth workflow. 
4. We control external factors that may affect overall efficiency and productivity by updating
our employees with any new technological advancement.
Overview: 
In order to control all external factors that may disrupt the success of the company NBP takes on a very
customer centered approach. We learned through the branch manager and his responses that NBP responds
well to any changes within the motivations of employees or changes in the market by establishing a proper
well-structured feedback loop. They like to communicate efficiently with both external (stakeholders
existing outside of the company) as well as internal (employees existing within the company) sources.
Another key viewpoint to their method of control is to have a thorough and deep understanding of their
employee and their satisfaction. In terms of internal problems that may arise due to employees and
dissatisfaction with their job, there's an emphasis on how much importance is being given to their well-being
and comfort. The branch manager we spoke to also had a deep understanding of the type of employees he
worked with and he gave credit to this knowledge for helping him manage and control his work environment
and therefore, directly affecting the efficiency and productivity of the company in achieving its targets and
goals. 

CONCLUSION

After a comprehensive interview with Sir Lyaqat Ali Sheikh, Branch Manager of the Malir Cantt branch of
National Bank of Pakistan, the practical application of the four managerial functions: Planning, Organizing,
Leading, and controlling, has been determined. It is clear through his answers as well as from his experience
that there is a big difference between what we study as a theory versus how those theories are actually
utilized in the real world. This could be owing to the numerous environmental uncertainties present in our
world or because of the ever-changing, diverse demands of the market. However, regardless of that fact,
National Bank of Pakistan does an effective and efficient job in handling its managerial functions in a way
that is beneficial for the organization as well as for the society; as has been confirmed through the extensive
and thorough questions asked by our group members. 

Principles of Management Page 14