SILK BANK LIMITEDFINAL PROJECT PRESENTAION OF PRINCIPLE OF MANAGEMENT

GROUP MEMBERS

o Syed Nabeel Ali - 1536

o Syed Abdul Rehman

o Adnan Ahmed

o Fahad Aziz

FACILITATOR:

Sir. Asif Jalees

ACKNOWLEDGEMENT

Thanks to all members of different departments of SILK BANK LIMITED

who helped us in acquiring information about their organization. Thanks

to Mr. Farhan Ahmed (Area Sales Manager of Silk Bank) who helped us

in providing information for our project. We would like to thanks all our

parents and those people who help us in making this project. We also

state our gratitude teacher Mr. Asif Jalees this is their effort,

guidelines that we have completed the Project successfully.

INTRODUCTION TO SILK BANK LIMITED

Silk Bank came into existence on March 31, 2008, a syndicate

comprising of the IFC, Bank Muscat, Nomura International and

Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr.

Sadeq Sayeed who acquired 86.55% stake in Silk Bank for

around $213 million. Saudi Pak Industrial and Agricultural

Investment Company Pvt. Ltd (SAPICO) was renamed Silk

Bank Pakistan Ltd. Under the new leadership, the Bank

continues to focus on SME & Consumer financing resulting in

efforts of increased profitability.

VISION, MISSION & VALUES

Vision› Benchmark of Excellence in premier banking

Mission› To be the leader in premier banking trusted by customers for acce

ssibility, service &innovation; be an employer of choice, creating value for all stakeholders.

Core Values› Customer Focus› Integrity› Teamwork› Creativity› Meritocracy

QUETIONNAIRE AND LEARNED OBJECTS

PLANNING, ORGANIZING, LEADING & CONTROLLING IN SILK BANK

Planning

› Make feasibility

› Monthly and weekly plan

› Establish overall strategies for achieving the goals

Organizing

› Divide work to be done into specific jobs and departments in Silk Bank.

› Assign tasks and responsibilities associated with individual jobs in Silk

Bank

› Establishes relationships among individuals, groups and departments.

› Allocates and deploys organizational resources.

Leading

› Respecting and understanding employees.

› Communicate effectively

› Trust of the team.

Controlling

› Documentation

› Approval & Authorization

› Verification

› Supervision

› Separation of duties

› Safeguarding of assets

› Reporting

HUMAN SKILLS NECESSARY TO LEAD A TEAM

According to Farhan Ahmed (Area Sales Manager – Silk Bank), for any job based

on human skills help a leader to work effectively with subordinates, peers,

superiors to accomplish the organization’s goals Organizing. Following are those

skills:

Create an atmosphere of trust

Respecting and understanding employees.

Communicate effectively

Trust of the team

BIGGEST CHALLENGES FOR MANAGERS IN SILK BANK

Below are the challenges:

How to come to a new level of growth and sustainable profitability in an

environment of low interest rates

Where to develop new and reliable sources of revenue

Enriching and increasing the business value of customer relationships, at

a time when customer behaviors and expectations are more demanding

Too many targets to be achieved.

IMPACT OF GLOBALIZATION ON SILK BANK

According to them, they not much influenced by Globalization, the reason is that they are working under the umbrella of State Bank of Pakistan, which has set his own rules and regulations. Some how there are the following things which impact Silk Bank:

Globalization opens up markets and ensures competition for them.

Removes in efficiencies and leading to greater growth.

Ensures specialization takes place in areas of comparative advantage.

For labor abundant economies this means increased employment as well as

growth

MANAGERIAL ETHICS GUIDLINE FOR THE ENTIRE ORGANIZATION

Silk Bank has adopted the following ethics.

Local Laws & Group Standards

Confidentiality & Data Protection

Suitable Products

Bribery & Corruption

Objectives of Code of Ethics:

Their code of ethics promote the following objectives.

Honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationship.

Compliance with applicable governmental laws, rules and regulations.

Promote internal reporting to designated persons of violations of the code.

CORPORATE SOCIAL RESPONSIBILITY OF SILK BANK LIMITED

Every year Silk bank limited carry out environmental audits and make

significant contributions to the society to support their agenda of Corporate

Social Responsibility. Silk bank raised funds in which not only the bank but the

employees contributed equally which were then contributed to flood

relief rehabilitation.

CSR Activities in Silk Bank

Following are the details of their CSR activities.

Roshan MustaqbilSilk bank Roshan Mustaqbil Bancassurance is an education plan exclusively designed to cater your needs. The plan is underwritten by EFU Life Assurance Ltd. Roshan Mustaqbil is a flexible, tailor-made, complete financial package that facilitates you to plan your children’s future education requirements and guarantees a financially secure tomorrow even in case of any mishap.

Sunehra KalSilk Bank Sunehra Kal bancaassurance is a saving and investment plan exclusively designed to cater all your needs. The plan is underwritten by EFU Life Assurance Ltd. Sunehra Kal is comprehensive financial planning package that gives you the dual benefit of protection along with potentially higher returns over a long- term on your saving and investment.

Mehfooz Har Pal

Silk Bank Mehfooz Har Pal bankassurance is a simple yet

comprehensive accident and hospitalization plan providing

24 hour worldwide coverage to the entire family. Mehfooz Har

Pal guarantees your financial well by paying out cash on

death

or prolonged absence from work as a result of an accident or 

hospitalization due to an accident. The plan is underwritten

by EFU Life.

Silk Health Plan

o With a mission to help people live healthier, wealthier and

more successful lives, SilkBank offers Silk Health Plan, 

o

 comprehensive healthcare package that provides financial pr

otection in case of illness or accident that leads to hospitaliza

tion. The plan is underwritten by Allianz EFU.

HOW THE ORGANIZATIONAL CULTURE IS DERIVED IN SILK BANK

They have the following approaches regarding the culture of their organization

Teamwork- They work as a team family

Working - like a family rejoice

Competition- there is always a competition there

Career- a great career ahead

CON’t

An innovative culture helps Silk bank to produce unique products and services that meet their customer’s needs.

They get away from the culture of sifarish, reciprocity, favoritism, nepotism and inculcate a culture of serving the customers equally and honorably without any distinction.

They apply the KYC (Know Your Customers) regulations with equal fervor, discourage benami loans

GOALS AND MBO APPROACH BY SILK BANK

Silk Bank remains on course to meet its long term goals and is fully committed to

enhance its capital to meet regulatory requirements.

Silk bank's main objective is to offer outstanding value to their customers by

providing a knowledgeable,

efficient and reliable service

in a personal, helpful and responsive manner. Central to this service philosophy is

their professional consultative approach, which they take with each customer. By

getting to know their customers better, they identify their needs and match them

with tailor-made quality products and service solutions.

Management by Objectives (MBO)

In our organization, employees are motivated through MBO. Here they have a program that emphasizes participative on setting goals that are tangible, verifiable and measurable. In this regard, they have the following ingredients in MBO

Goal specificity,

Participative decision-making,

An explicit time period

Performance feedback.  

Implementation of these ingredients results in employee motivation.

ENVIRONMENTAL SCANNING

They gather Information related to markets & customers, changes in legislation & regulations that have a direct impact on organization’s activities that could be collected continuously to monitor changes. Following are the steps which are followed by Silk Bank Manager: 

Define Question

Develop assumption

Gather Data

Filter and organize data

Analyze appropriate data

Prepare findings and select best recommendations

Prepare draft report

Review and approve

Issue report and deliver presentation

Seek feedback from customer

ENVIRONMENTAL SCANNING

They gather Information related to markets & customers, changes in legislation & regulations that have a direct impact on organization’s activities that could be collected continuously to monitor changes. Following are the steps which are followed by Silk Bank Manager: 

Define Question

Develop assumption

Gather Data

Filter and organize data

Analyze appropriate data

Prepare findings and select best recommendations

Prepare draft report

Review and approve

Issue report and deliver presentation

Seek feedback from customer

ORGANIZATIONAL STRUCTURE & SPAN OF CONTROL

Below is the organizational structure of Silk Bank:

SPAN OF CONTROL

Span of control means number of employees working under the one

officer.

The concept of span of control has been started many years ago.

The main objective to use the span of control is to save the resources of

the firm as well as to increase the authority of the officer.

Span of Control in Silk bank is increasing widely because all the banks are

working under the one area manager, that shows the efficiency and

effectiveness of the management who have organized such kind of

structure which decreasing the cost as well as increasing the revenue of

the firm with lower rate of employees.

CHAIN OF COMMAND IN SILK BANK LIMITED

In Silk Bank there are two important types of command which is used, one is most

important Central Command and 2nd is Branch Command.

Chain of Command is centralized power in Silk bank

Control by the higher authorities

All decision making has been made at central level

The final authority is the Chairman who can take every kind of decision with

communication of their board of directors. Specially marketing

decisions which has the great importance made according to the centralized

procedure.

Branch Command is a delegation of power has given by the chairman and

the board of directors which also have the importance because a branch manager is

a kind of person who can take the immediate decisions at the spot.

A branch manager in Silk bank who have the command and control of their branch

where he can change the branch environment, but he also controlled by the regional

manager, and his task is restricted.

Centralization

In Silk bank there are some functions which are centralized like;

› marketing,

› profit increase

› cost decrease

› increase shares in the market

and some where branch managers or area managers could make their interference for instance in various operations such as account opening, treasury functions and I.T operations which are performed by the direct regional and area manager.

Decentralization

In this process the power has given to the officers who can take the decisions at their own level which is conventional and daily routine based. For instance a branch manager can

› reject the cheque,

› can interference in various departments,

› can stop their work on emergency basis, and

› can take the decision on fire alarming situation

HOW THEY MOTIVATE EMPLOYEES OTHER THAN SALARY?

They focus on motivating their employees other than salary. Department managers and

head Provide tell employees:

Where is the company going?

What are current challenges that top management is trying to address?

How does the employee’s contribution fit and

what are the opportunities in future for them to warm up.

Recognition and giving credit for good work is the way to go.

Listen the employee’s issues and also as for feedback

give them the chance to optimize their own work environment where they can

perform the best. 

DIFFERENCE BETWEEN A LEADER AND A MANAGER

Leadership is just one of the many assets a successful manager must possess. Care must be taken in distinguishing between the two concepts. The main aim of a manager is to maximize the output of the organization through administrative implementation. To achieve this, managers must undertake the following functions:

Organization

Planning

Staffing

Directing

Controlling

 

RECRUITMENT AND SELECTION PROCEDURE OF SILK BANK LIMITED

All current openings are posted on their website and updated weekly by Human Resources. Candidates who are interested in an open position with Silk Bank must complete an online application through their website for consideration. Candidates are encouraged to attach their résumé to their profile during the application process.

1. Candidates are invited in to do a written test. The written test comprises of a combination of the following tests, with varying difficulty levels for different positions:

Logical aptitude / reasoning Quantitative / numerical aptitude English language General socio-economic and Banking Awareness

2. Once candidate pass the test, they are invited for a interview with their first line supervisor interview  

3. Then we will call you for interview with HR department and finally with branch manager

4. Once candidate clear the interview they briefed on the terms of employment and provided an appointment letter

5. Candidates are almost there! Candidates undergo a medical exam and after all clearances joins the Bank

6. They are defines about job responsibilities and duties by department head.

RECRUITMENT SOURCES USE BY SILK BANK

They uses all three main sources for recruiting best manpower for their organization.

Internal Hiring:

They us internal sources to recruit employees upward or laterally within the company

because little or no training is needed, and expenses that include advertising for a

new employee and running background checks are spared.

External Sources

They also use External sources like news paper, billboards and Television

advertisement. Following is an example of newspaper ad placed by Silk Bank. They

also hire employees by third party contract and on contractual basis. They work with

Fulcrum, Peoples, Prime HR and first solution for recruitment purpose.

SELECTION, INTERVIEW AND TEST

Employee selection is an important part of the Bank’s success.

If HRM department of the Silk Bank able to select right employee in the right

place then the employees able to perform their job effective and also achieve

their goal as well as bank achieve its goal.

To make the selection activities successful, a lot of careful planning and careful

thought is required.

The selection process is composed of a number of steps.

Each of these steps provides decision makers with information that will help them

predict whether an applicant will prove to be a successful job performer.

The Selection Process of the Silk Bank Limited

Appropriate selection procedures must be used for each post. Procedures may vary at its simplest this may involve a strength forward interview and skills testing. Regular recruitments the selection process is a three-stage journey.

1. Initial Screening:› The screening of inquiries› The provision of screening interviews.

2. Application Received

SL No.

Criteria Existing Staff

New Candidate

1 Basic Education   

2 Technical Education/ training

  

3 Period of Experience   

4 Type of Experience   

5 Quality of Application   

6 Location   

7 Reference:   

3. Written Test:› The Human Resources Division will call some or all of the short listed candidates

to a written test, held by itself or being arranged by some other institution (i.e. IBA etc) under contract. The result of the written test will be treated as confidential.

4. Comprehensive Interviews: › depth information about a candidate be obtained in this concern

The Human Resources Division of Silk Bank who will also make the necessary housekeeping arrangements for the interview will call those qualifying in the written test for an interview.

› Copies of application forms /CV’s › Blank interview report forms › A copy of the job advertisement (if applicable)› A copy of the job description

5. The Realistic Job Preview

6. Background Investigation:

7. Provision of Service Rule:› Educational Qualification:› Age Limit › Offer of Appointment:

Offer of AppointmentWhen all candidates have been interviewed the interview committee will send the result to the Human Resources Division for appointment on merit basis. Accordingly, Human Resources Division will arrange to inform the successful candidates as soon as possible agreeing a commencement date and starting salary. Such an offer of appointment can only be formalized after the successful candidate meets the following conditions:

Signed letter of offer of appointment to signify acceptance of officer Medical fitness report. Copy of all academic certificates Clean reference report Signed sureties bond.

TRAINING AND DEVELOPMENT SECTION CONTRIBUTION

They ensure that employees under their supervision are trained in a timely manner, identify their needs for improvement in their present jobs and to provide information and guidance

Training specialists are responsible for coordinating new-hire orientation. Without training specialists to conduct orientation, department supervisors would be responsible for training new workers.

And also teach employees to watch for:

› New account fraud – setting up accounts based on stolen identity or personal information

› Credit card fraud – using credit cards without authorization› Check fraud – using checks without authorization, or using fake checks› Phishing – fraudulent attempts to get personal or company information that can

be used to perpetrate identity theft› Identity theft – using another individual's personal or financial information

without his or her consent

TRAINING AND DEVELOPMENT OPPURTUNITIES FOR EMPLOYEES

Their staff has always been the focus of our planning process.

Human Resource Development has a profound impact on business processes and a direct

relationship with service quality standards.

Silk bank dedicated more than 39,000 hours of training covering both soft skills as well as job-

skills.

The training programs covered service excellence, selling skills, product and operational

knowledge including management skill development.

In fulfilling our mission to be the "Employer of Choice", we invited all our employees to an

"Employee Engagement Survey''.

Management also emphasizes on imparting of training to enhance knowledge and

understanding of the Bank's internal policies and procedures and prudential regulations.

This has resulted in the strengthening of the control environment.

STANDARD JOB DESCRIPTION

They invested heavily in their distribution and have expanded their

network to 1249 regional branches in Pakistan.

They continued to upgrade the skill set of their people through training

and development, enabled further by a world class technology

infrastructure to meet the dynamic needs of their customers and making

their service a truly differentiating factor. Below is the format of the same.

SWOT ANALYSIS SILK BANK

Strengths:› Public confidence› Sound financial strength› Highest profitability› Vast operational network› Recognition of hard work of staff SWIFT› Internet access (www.silkbank.com) Pension & salaries payments

  Weaknesses:

› Lack of good delegation› Inadequate, poorly placed network technology› Complex MIS› Deep rooted bureaucratic approval› Poor resource utilization› Frequent change in senior management

 

  Opportunities:

› New style management› Introduction of new products and services› Introduction of new technology & electronic banking› Capital management & equity financing› Secondary market operations› New deposit scheme

Threats:› Establishment of new private financial institutions &

expansion› Govt. sponsored schemes› Political pressure› Reducing branch network

CONCLUSION

It has been only one year since the establishment of Silk bank,

and since its establishment it has aimed to become the leading

bank of Pakistan by that provides outstanding services to its

customers

Furthermore, as the bank is growing, the number of employees at

Silk bank are increasing, which shows that Silk bank is being

considered as an employer, that provides its employees with a

challenging environment to work in, where they can harness their

full potential and shows confidence as an employer by the

employees of the bank 

Q & A

THANKING YOU