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ACKNOWLEDGEMENT
“Pen can do what the sword cannot”
I express my gratitude to Almighty Allah for his unlimited graciousness because
Words are scarce and knowledge is limited to express his majesty. I have the pearls of
my eyes to admire the blessings of the compassionate, omnipotent, the Merciful and the
beneficent Allah who is the entire source of knowledge and wisdom.
Due to his blessings, I become able to contribute this comprehensive assignment
towards the deep ocean of knowledge already exist. Heart is warm with love and
thoughts have turned to the city of knowledge – The Holy Prophet (P.B.U.H) His
saying “Learn from to Cradle to Grave” inspired the strong desire in me to undertake
this course of valuable studies.
I deem it as a great opportunity to offer my heartiest gratitude to my venerable
teachers Jawed Ahmad and Khizar Hayat, Deptt. Of Business Management Sciences,
Allama Iqbal Open University; for their great efforts to make us understand and to
conduct this kind of activities of giving the great opportunity for learning beyond your
existing area of scope.
I am thankful to Bashir Ahmad shahbaz, bank manager Model Town branch,
Bahawalpur, for his nice co-operation and proper guidance throughout my internship. I
express my heartiest and sincerest sense of gratitude to all of them for providing me
grand exposure to gain multifarious experience, May Allah The Almighty bless my
parents and well-wishers who are the permanent source of prayers for me and my
successes in this world.
Table of Contents
TOPICS PAGE #
Acknowledgement 01
Letter of Transmittal 02
Executive Summary 08
1. Introduction & Objective of Studying the Organization 09
2. Role of Sector and the Organization 14
Commercial Banking in Pakistan 15
3. History of Muslim Commercial Bank 21
Historical Background of MCB 22
Privatization of MCB 23
Vision and Mission Statement 33
Values and Functions of MCB 34
Awards and Achievements of MCB 41
4. Organizational Structure 45
Planned Design of MCB 48
5. Organizational Structure of Human Resource Management 51
(HRM) Department
6. Human Resource Management Process in the Organization 54
6.1 Human Resource Planning and Forecasting 55
HRP Process 55
Forecasting HR Requirements 56
Methods to Forecast HR Needs 56
6.2 Employees Recruitment and Selection 57
Sources of Candidates 62
a) Internal Sources 62
b) External Sources 63
Employment Selection Process 65
6.3 Training and Development 71
Training Need Assessment 73
Employee Development 80
6.4 Performance Management 84
Setting performance standard and Expectations 85
How performance Reports are Written 91
6.5 Employee Compensation and benefits 94
Types of Compensation and Benefits 96
6.6 Organizational career Management 99
Employee Job Changes 100
Job Changes within the Organization 103
Promotion 103
Demotion 104
Transfer 105
Separations 106
Layoffs 106
Termination 107
Retirement 108
Resignation 109
7. Labour Management Relations 110
8. Critical analysis of the Theoretical Concepts relating to Practical Experience 115
SWOT Analysis 115
PEST Analysis 118
9. Policies of MCB 120
10. Self- Experience 125
11. Conclusion 128
12. Recommendation and Suggestions 131
13. References 136
14. Abbreviations 137
15. Appendices 138
LIST OF TABLES
Table No. Description PAGE #
Table-1: Bank Position in 1973 18
Table-2: Bank Position in 2000 19
Table-3: Scheduled Banks 20
Table-4: Compliance Status of MCB 28
Table-5: Pattern of Shareholdings 30
Table-6: Board of Directors 31
Table-7: Corporate Profile of MCB 32
Table-8: Absolute Category Rating 88
LIST OF ILLUSTRATIONS
Figure No. Description PAGE #
Figure-1: Organizational Hierarchy of MCB 47
Figure-2: Branch Network of MCB 48
Figure-3: Divisions of MCB 49
Figure-4: HRM Department of MCB 53
Figure-5: Recruitment Process 59
Figure-6: Training Process 72
Figure-7: Elements of Performance Management System 93
Figure-8: Organizational Reward system 95
Figure-9: Individual Career Path 102
Figure-10: Labour Management Relations within Organization 113
Our pillars of strength stand on a foundation
of leadership..
Executive Summary
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid
foundation of over 50 years in Pakistan, with a network of over 1000 branches, over
850 of which are Automated Branches, over 450 MCB ATMs in 41 cities nationwide
and a network of over 12 banks on the MNET ATM Switch.
MCB's operations continued to be streamlined with focus on rationalization of
expenses, re-alignment of back-end 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.
During my internship in MCB, I worked in HR department and I successfully
completed all the task/duties that were assigned to me.
During the course of internship, I learned about different functions performed
by HR as a whole. I also learned bank’s correspondence with their employees and
within branches. I learned about documentation requirements and record keeping for
different activities and processes, especially the documentation requirement for
different kinds of HR activities.
1- INTRODUCTION AND OBJECTIVES
OF STUDYING THE ORGANIZATION
1. Introduction of the report
2. Scope of the study
3. Purpose of studying in MCB
4. Objectives
To present the importance and purpose of MCB
To discuss the MCB’s Effort
Discuss about the needs and wants of MCB
Improve personal Skills
Improve organizational analysis
1- INTRODUCTION AND OBJECTIVES OF STUDYING THE ORGANIZATION
Introduction:
Chapter one is about introduction of report. As a part of requirement of MBA
degree six week internship is necessary for student. This chapter includes background,
purpose, scope, objectives and methodology of the study. It also include introduction of
organization.
Background of the study:
Internship training program during Master in Business administration Program
is necessary for the partial fulfillment of the completion of Degree of Master in
Business Administration. It is necessary for me to complete an internship session of
about 6 weeks in some manufacturing or service industry relevant to my area of interest
and specialization. So, I choose the Banking field because I have the interest in this
sector because my study background is related with this sector.
Purpose :
Internship is the capstone experience that provides me with hands-on, real-
world experience in a work setting. Ideally, internship will enable interns to:
(a) Integrate and use my knowledge and skills from the classroom,
(b) Discover where further competence is needed,
(c) Take steps to gain that competence under educational supervision, and
(d) Become better acquainted with the types of work settings in which such competence
can be applied.
Scope :
This study will facilitate the students regarding the working of Banking sector
of Pakistan because most of the teachers during their lectures use the examples of
Banks like MCB, National Bank, UBL, Bank Al Falah and many others, students
should study this report so that they must grasp the functioning of such Banks.
Limitation of the Study:
The study is done with the sole purpose of doing the best work but there were
certain limitation faced during the internship period. The most important limitation
from which the study suffers is the non-availability of information in a manner required
for analysis and the secrecy of the bank. Another important limitation of the study is
time and space constraint.
Objectives :
I worked as an internee in MCB Model Town Branch. The main objectives to study in
MCB were:
To get some experience in working with well reputed organization.
To gain knowledge about the professional environment of the bank.
To know about the technology utilized in the banks.
To deal and manage with the situation of stress.
Methodology :
There are mainly two methods that are used for the collection of data.
Primary Data:
Observation of functions of Branch operations on the spot.
Observation of different processes of Branch on the spot.
Secondary Data:
Internet is very helpful for me to study more about banking sector of Pakistan.
Different type of booklets of the Bank.
Annual reports
Journals
Newspapers
Organization:
MCB is one of the leading banks of Pakistan with a deposit base of about Rs.
280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon
earned the reputation of a solid and conservative financial institution managed by
expatriate executives. In 1974, MCB was nationalized along with all other private
sector banks.
The Bank has a customer base of approximately 4 million, a nationwide
distribution network of over 1,000 branches and over 450 ATMs in the market.
During the last fifteen years, the Bank has concentrated on growth through
improving service quality, investment in technology and people, utilizing its extensive
branch network, developing a large and stable deposit base.
Summary :
This is the first chapter of the report containing the detail introduction of the
report. Internship training program during Master in Business administration Program
is necessary for the partial fulfillment of the completion of Degree of Master in
Business Administration. Internship will enable interns to integrate and use my
knowledge and skills from the classroom. This study will facilitate the students
regarding the working of banking sector of Pakistan.
For achieving my purposes, objectives and for the preparation of the internship report, I
required some kind of data, I used both methods of data collection that are primary
sources and secondary sources for that purpose.
2- ROLE OF SECTOR AND ORGANIZATION
1. Current situation of banking sector in Pakistan
2. Commercial banking in Pakistan
3. Importance of MCB in banking sector
4. Role of MCB in the economic & social development of Pakistan
2- ROLE OF SECTOR AND ORGANIZATION
Introduction:
This chapter will summarize that what’s the current situation of the banking
sector in Pakistan. What elaborate the importance of MCB in the banking sector of
Pakistan? This chapter will explore the role of MCB in the economic & social
development of Pakistan. Moreover this will also tells you about the functions that’s the
organization is performing and about the internship office.
Overall respective sectors in Pakistan:
Banking is one of the most sensitive businesses all over the world. Banks play
very important role in the economy of a country and Pakistan is no exemption. Banks
are custodian to the assets of the general masses. The banking sector plays a significant
role in a contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance.
Commercial Banking In Pakistan:
The interesting point which I observed during the span of mine internship was
the historical background of Banking & Financial sector which is the one in which
great improvement and growth is observed since the formation of Pakistan. For
studying the growth of this sector we can divide it into three stages, which are as
follows:
a) Pre-Nationalization Era
b) Nationalization Era
c) Post Nationalization Era
A)Pre Nationalization Period:
There were only two Muslim banks in Indo Pak before partition, they were;
Habib Bank Ltd. (estd. in 1941 at Bombay) & Australia Bank Ltd. (estd. In 1944 at
Lahore). All other banks, at that time, were either owned by Hindus or Foreigners.
At the time of partition there were 631 bank branches in area which came under
Pakistani control. But due to bloodshed and violence at large scale, mostly branches
were closed and the disparity can be assessed from the fact that on July 1948 there were
195 branches with deposits of Rs.88 crore (880 million) only.
Also a factor lagging in Pakistani industry was a central bank of its own, by that
time Reserve Bank of India was acting as central bank for both countries and same
currency notes were used in both territories. But Reserve Bank of India was biased and
Set down Pakistan on many occasions such as the issue of funds transfer etc.
In this period drastic steps were taken in government sector for the
improvement of overall position. The private sector also responded to these changes
and some very positive changes were observed. Some of the steps taken by the
government in this regard were as under:
1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.
2) Setting up of National Bank of Pakistan in November, 1949 to control the
'jute' export in East Pakistan and to act as agent of SBP.
3) Larger powers were given to SBP through SBP Act (1956) for controlling
purposes.
4) Banking Companies Ordinance 1962 for protection and guidance to banks.
5) Establishment of specialized banks, such as ADBP (1952);
a) HBFC (Nov, 1952);
b) P1CIC (Oct, 1957)
c) IDBP (Aug. 1961);
d) NDFC (Jan, 1973).
These were the steps, which built a strong banking sector in Pakistan. This is
also obvious from the facts that by 1973 there were almost 10 foreign banks were
working in Pakistan and all over deposit position was around Rs.2300 crore (23,000
million). A bird eye view of 5 top banks was as given below:
Table 1-BANK POSITION IN 1973
BANK NO. OF BRANCHES
DEPOSITS
(Rs. In Millions)
HBL 667 6,160
NBP 579 5,660
UBL 497 5,670
MCB 506 1,640
ABL 145 570
B) Nationalization Period:
On January 01, 1974 all Pakistani banks were nationalized through
Nationalization Act 1974. Under this law all Pakistani banks became a public property.
All small banks were merged in bigger banks to create 5 major Pakistani banks
Pakistani banks.
These banks were to control by Pakistan Banking Council. There are still
controversies about this act of government as whether it contributed in success of
failure of banks. However the major changes after nationalization were as follows:
Working of banks was extended to under developed areas.
Market expansion for credit and deposits.
Decrease in service level of bank officers.
Decrease in profitability as well.
However the effect of expansion was enormous and it can also be depicted with the
help of table 2 which shows the deposit & branch positions of different nationalized
banks.
Table 2-BANK POSITION IN 2000
BANK NO. OF BRANCHES
DEPOSITS
(Rs. In Millions)
HBL 1926 153,431
NBP 1448 128,679
UBL 1684 87,482
MCB 1288 50,013
ABL 750 33,757
TOTAL 7096 453,362
C) Post Nationalization Era:
In 1990 the government decided to denationalize all the nationalized institutes.
Some was also suggested in banking sector. For this purpose, amendments were made
to Nationalization Act 1974 and two nationalized banks were privatized.
Along with this a permission to open banks in private sector was also granted. The
rules regarding establishment of new banks and for incoming foreign banks were also
relaxed.
The-three privatized banks are;
a) MCB taken up by a private group in April, 1991
b) ABL taken up by its own employees in September, 1991.1
c) UBL taken up by UAE party in 2002.
After these changes a large number of private and foreign banks started their operations
in Pakistan and the present status can be seen from the following figures:
Table 3- SCHEDULED BANKS
Category No. of Banks
Nationalized Commercial Banks 3
Private / Privatized Commerce Banks 18
Public Sector Specialized Banks 4
Foreign Banks 19
Total Schedule Banks 44
3- HISTORY OF MUSLIM COMMERCIAL BANK
1. History of Muslim Commercial Bank
2. Privatization of MCB
3. Developments made after privatization
4. MCB as an organization
5. Organizational Profile of MCB
6. Compliance status of MCB
7. Pattern of shareholdings
8. Board of directors
9. Corporate profile of MCB
10. Vision and Mission statement
11. Values & Functions of MCB
12. Awards of MCB
3- HISTORY OF MUSLIM COMMERCIAL BANK
This bank was incorporated under companies’ act 1913 on 9th July 1947 (just
before partition) at Calcutta. But due to changing scenario of the region, the certificate
of incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the
certificate was issued at Chittagong.
The first Head office of the company was established at Dacca and Mr. G.M.
Adamjee was appointed its first chairman. It was incorporated with an authorized
capital of Rs. 15 million.
After some time the registered office of the company was shifted to Karachi on
August 23rd, 1956 through a special resolution, now recently the Head office of MCB
has been transferred to Islamabad in July, 1999 and now Head office is termed as
Principle Office.
This institute was nationalized with other on January 1st, 1974. At that time it
had 506 branches and deposits amounting to Rs. 1,640 million. Although. MCB has a
reputation of a conservative bank but nationalization also left its effects on this institute
as well and by end of year 1991 in which it was privatized the total number of branches
were 1.287 and deposits amounting to as high as Rs. 35,029 million.
When privatization policy was announced in 1990, MCB was the first to be
privatized upon recommendations of World Bank and IMF. The reason for this choice
was the better profitability condition of the organization and less risky credit portfolio
which made'' it a good choice for investors.
On April 8th, 1991, the management control was handed over to National
Group (the highest bidders). Initially only 26% of shares were sold to private sector at
Rs. 56 per share.
Privatization:
A wave of economic reforms swept Pakistan in the lattes introducing the Need
for privatization of state owned banks and companies. This was the first bank to be
privatized in 1991 and the bank was purchased by a consortium of Pakistani corporate
groups led by Nishat Group. Nishat Group is one of the leading and most diversified
business groups in Pakistan. The group has strong presence in the most important
business sectors of the country such as banking, textile, cement and insurance.
Mian Mohammad Mansha is the Chairman of the group (and also MCB) and
has played instrumental role in its success. In recognition of Mr. Mansha’s contribution,
the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most
prestigious civil awards of the country.
Developments:
After privatization, the growth in every department of the bank has been
Observed. Following are some key developments:
1. Launching of different deposit schemes to increase saving level.
2. Increased participation on foreign trade.
3. Betterment of branches and staff service level.
4. Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in
Pakistan.
5. Extended use of information technology which is evident from the fact that there
are 768 fully automated branches, 243 online branches (integrated networking), 151
ATMS in 27 cities nationwide and MCB continuously innovates new product.
MCB AS AN ORGANIZATION:
Over the years MCB has developed strong relationships with its customers by
understanding their needs and treating them with respect, dignity and importance. The
driving force behind its commitment and services is its focus on customers ensuring
that it not only meets, but also exceeds their expectation. The Bank has a customer base
of approximately 4 million.
They strive to achieve excellence by ensuring that every moment of their time is
spent in adding value, making sure that they do things right, first time, and every time.
With the quest of quality MCB has always taken initiatives bringing banking into a new
arena; from cash to the convenience of plastic; from branch banking to internet banking
and from face to face customer interaction to online accessibility.
MCB now focuses on three core businesses namely Corporate, Commercial and
Consumer Banking. Corporate clientele includes public sector companies as well as
large local and multinational concerns. MCB is also catering to the growing middle
class by providing new asset and liability products. MCB Bank Limited (Formerly
Muslim Commercial Bank Limited) has a solid foundation of over 63 years in Pakistan,
the Bank provides 24 hour banking convenience with a network of over 1000 branches,
the largest ATM network in Pakistan over 450 ATM locations in the market.
Profitability:
MCB is Pakistan’s fourth largest bank by assets having an asset base of US$ 5.9
billion, and the largest by market capitalization having a market capitalization of US$
1.8 billion. The Bank has a customer base of approximately 4 million and a nationwide
distribution network of 1,081 branches, including 8 Islamic banking branches, and over
300 ATMs, in a market with a population of over160 million.
In 2009, MCB reported a profit after tax of PKR 15.5 billion (appx.US$183
million) and generated a return on average equity of 27.35% and a return on assets of
3.25%. The Bank’s asset quality is strong with a gross NPL ratio of 8.62%.
During the last fifteen years, the Bank has concentrated on growth through
improving service quality, investment in technology and people, utilizing its extensive
branch network, developing a large and stable deposit base and managing its non-
performing loans via improved risk management processes.
MCB has 1081 branches (as of 31st December, 2009) including local branches,
and business establishments in Sri Lanka and Bahrain including newly established Rep.
Office in Dubai, UAE. The Bank has also formed a private company in Hong Kong
(fully owned subsidiary of MCB) in partnership with Standard Chartered Bank,
handling trade transactions of select countries in the Asia-Pacific region.
MCB has been successful in turning around its operations since its privatization
and is moving forward to set high performance standards with the continuous support
of its customers and leadership in banking technology. To further strengthen its
financial services base, MCB has also incorporated an Asset Management Company in
the year 2005 known as MCB Asset Management Company. MCB has also
incorporated a leasing company in Azerbaijan in 2009.
Fully Owned Subsidiaries of MCB are:
• 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.
Business Strategy:
The business strategy of MCB is to provide financial solutions to major
segments of its customer base, namely retail and corporate. Separate business groups
have been set up to ensure a more focused approach in satisfying the diversified
customer segments. The Bank has also established an Islamic Banking unit to offer
Shariah compliant products and services, with dedicated Islamic banking branches in
six cities. The plan for future is to further realize the capacity of Islamic Financial
Systems and to bring Shariah compliant network parallel to current retail network of
traditional banking.
Wholesale Banking Group caters to the top tier local and multinational
companies. As a result of organizational restructuring, including reinvigorating
Investment Banking and beefing up relationship teams, the Group is in line with the
industry’s best practices. MCB has closed some large deals and is currently working on
a number of large transactions including advisory business. It is a strong competitor in
cash management and structured financing activities.
Retail Banking Group focuses on trading and middle market segment primarily
for building risk assets and trade related business. MCB caters to their needs of
financing foreign and local trade, funds transfer and other seasonal requirements.
The Bank has renovated a large number of branches and staff has been trained
for meeting the requirements of SMEs and other retail customers.
A separate SME Financing Division has been set up to provide customized
financing solutions to this very important segment of the economy. The Group also
focuses on the development of innovative consumer asset products for satisfying the
personal needs of the customers. MCB has a significant share of consumer financing
business with its House and Car Financing schemes.
The recently launched running financing facility against the mortgage of
property is also expected to go a long way in increasing the quality consumer credit
portfolio of the bank. With the experience gained in the past few years, the Bank is fast
progressing towards becoming the leading bank in consumer business.
Information Technology:
MCB’s name is synonymous with ATM facility in the country as the Bank has
been a pioneer in introducing 24-hour cash withdrawal facility and on-screen
transactions. MCB ATM/Debit Card, the most multifunctional card of the country, with
its collaboration with Cirrus and Maestro can be used globally. The Bank has also
deployed an extensive network of Point of Sale Terminals at thousands of merchants in
major cities of the country, thus having the privilege of being the first and only bank
with full-fledged card acquiring and issuing systems.
The Bank also pioneered the idea of sharing its ATM network with other banks
by establishing an electronic platform for enhanced network accessibility and secures
on-line transactions. MCB mobile banking was launched in mid-CY09, and volumes on
the platform have already crossed the PKR 1 billion mark. While the services are free
for now, going forward this entails improvement in fee income as well as generation of
sticky zero-cost deposits.
Technological leadership has helped the Bank in providing multiple delivery
channels to the customers and satisfying their needs anytime & anywhere in the world.
MCB offers the most comprehensive Internet banking solution in the country. MCB
Virtual-Internet Banking with its wide ranging banking solutions for the customers for
individual as well as corporate customers has become the most preferred Internet
banking solution in the country.
Organization Profile:
Name of Organization: MCB Limited.
Chairman: Main Mohammad Mansha
Location: Model Town Branch, Bahawalpur.
Branch code: 0187
Phone: +92-042-7727456 / 7720054
UAN: 111-000-622 (MCB)
Website: www.mcb.com.pk
Table - 4 Compliance status:
Name & Address MCB Bank LimitedMCB 15 Main Gulberg, Lahore
Legal Form Public Limited Company. Listed on Karachi, Lahore & Islamabad Stock Exchanges in Pakistan.
Name of External Auditors KPMG Taseer Hadi & Co.(Chartered Accountants).
Main Banking Commercial, Consumer, Corporate, Correspondent and Islamic Banking.
Registrar's and Share Registration Office THK Associated (Pvt.) Ltd.
Shares Department, Ground Floor,Modern Motors HouseBeaumont Road, Karachi
Chairman
President & CEO
Mian Muhammad ManshaMr M.U.A Usmani-Acting President
Banking License No. BCD (1) 17-66 dated 8th December 1966.
Compliance Status Compliant with KYC and AML regulations prescribed by State Bank of Pakistan.
Compliance Document required from Correspondent Banks
MCB AML KYC Questionnaire
Compliance Documents for Correspondent Banks
The Wolfsberg GroupQuestionnaireProcedures HandbookAML/KYC Questionnaire Filled-In By MCBUSA PATRIOT ACT CertificationUSA PATRIOT ACT Recertification
Circulars Classification of Dormant / Inoperative Account
Registered Office MCB Building, F-6 / G-6,Jinnah Avenue, Islamabad.
Principal Office MCB Tower I.I. Chundrigar Road, Karachi.
Table- 5
Pattern of Share Holdings:
Categories of shareholders - as of December31-12-2009
Description Shareholding Percentage
Directors, CEO and children 52,190,877 7.5518
Associated Companies 57,009,034 8.2490
NIT & ICP 5,835 0.0008
Banks, DFI & NBFI 2,239,307 0.3240
Insurance Companies 46,052,057 6.6635
Modarabas & Mutual Funds 7,208,703 1.0431
Public Sector Cos. & Corp. 131,749,731 19.0636
General Public (Local) 101,843,819 14.7364
General Public (Foreign) 2,400,126 0.3473
Others 44,237,663 6.4010
Foreign Companies 246,167,375 35.619
Company Total 691,104,527 100.00
Table - 6
Board of Directors:
Board of directors - as of December31-12-2009
Mian Mohammad Mansha Chairman
Mr. S. M. Muneer Vice Chairman
Mr. Tariq Rafi Member
Mr. Shahzad Saleem Member
Mr. Sarmad Amin Member
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Dato' Mohammed Hussein Member
Mr. Aftab Ahmad Khan Member
Mr. Abdul Farid Bin Alias Member
Mian Umer Mansha Member
Mr. Muhammad Ali Zeb Member
Mr. Atif Bajwa President / CEO
Table - 7
C orporate Profile:
Advisor Raza Mansha
Audit Committee Mian Mohammad Mansha
Mian umer Mansha
Aftab Ahmad Khan
Chief Financial
Officer
Ali Munir
Company
Secretary
Tahir Hassan Qureshi
AuditorsA.F.Ferguson & Co.Chartered Accountants
Riaz Ahmad & Co.(Chartered Accountants)
Legal Advisor Mandiwalla & Zafar
Advocates & Legal Consultants
HR
Committee
Mian Mohammad Mansha Chairman
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Mr. Shahzad Saleemn Member
Mr. M.U.A. Usmani Member
VISION & MISSION OF MCB
Vision Statement:
“To be the obvious choice for financial services in the region and beyond”
To be the leading, financial services provider, and partnering with our customers for a
more prosperous and secure future.
Our vision statement underlies our aspirations to establish the MCB group as the
benchmark reference for the provision of financial services in the region and even
further, in line with the increased needs of our customers operating in the global
economy.
Mission Statement:
“Pursuing the voyage towards excellence...”
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.
Providing innovative
Efficient financial solutions
Long-term relationships with our customers
Shareholders invest with confidence
Our mission statement testifies to our unrelenting commitment to best practices in
the provision of financial services throughout the group against the backdrop of
creating shareholder value.
VALUES OF MCB
Integrity :
We are the trustees of public funds and serve our community with integrity. We
believe in being the best at always doing the right thing. We deliver on our
responsibilities and commitments to our customers as well as our colleagues.
Respect :
We respect our customer’s values, beliefs, culture and history. We value the
equality of gender and diversity of experience and education that our employees bring
with them. We create an environment where each individual is enabled to succeed.
Excellence:
We take personal responsibility for our role as leaders in the pursuit of
excellence. We are a performance driven, result oriented organization where merit is
the only criterion for reward.
Knowledge:
A strong commitment to nurture our human capital through lifelong
development & learning toward achieving our goal described in our mission.
Customer Centricity :
Our customers are at the heart of everything we do. We thrive on the challenge
of understanding their needs and aspirations, both realized and unrealized. We make
every effort to exceed customer expectations through superior services and solutions.
Innovation:
We encourage and reward people who challenge the status quo and think
beyond the boundaries of the conventional. Our teams work together for the smooth
and efficient implementation of ideas and initiatives.
Customer Care :
The assurance of providing quick, dedicated and unrivalled services to our
valuable customers.
Team Work:
Our approach, towards synergistic potential among our people between the
companies of the group alongside leveraging individual skills & competencies.
FUNCTIONS OF MCB
Basically there are two basic categories on the basis of functioning of MCB Bank,
which are:
Principal function
Auxiliary function
Principal function:
The principal functions are basically the core functions of the bank that is their
lifeblood of bank, which are
o Acceptance of deposits
o Financing
o Deposits:
There are basically two types of deposits and their nature vary due to time factor,
which are described below:
Demand deposits:
The demand deposits have no legal restriction on drawing of the deposited amount
and the cash is readily available on demand without any conditions
Demand deposits are further classified into two categories:
o Current deposits:
The current deposits are non-interest bearing deposits and earn the most for banks
as there is no cost for the banks but the depositor can claim no interest whatsoever.
o Saving deposits:
The saving deposits are the interest bearing deposits and although there are no
such restrictions but it is mostly preferred for saving and salaried class and similar class
clients deposit in this category to earn interest so no regular withdrawal takes place in
this type of deposits.
Time deposits:
On the contrary the time deposits are deposits for a particular period of time and
cannot be easily withdrawn on demand and if the amount is withdrawn certain penalty
is levied on withdrawal before time.
Time deposits are further categorized into two categories that are
Notice time deposits:
The opposite is a Demand deposit or a sight deposit which can be withdrawn at any
time, without any notice or penalty; e.g. money deposited in a checking account or
savings account in a bank.
Fixed term deposits:
A deposit held at a financial institution that has a fixed term. These are
generally short-term with maturities ranging anywhere from a month to a few years.
FINANCING :
The second important function of the MCB is to provide finances to the individuals and
businesses against securities at a certain fixed rate of interest. As the different types of
accounts in accepting deposits MCB also have the different types of account in which it
provide the loan to its customers. Following are the different types of the accounts in
which loan is made.
Demand Finances:
Demand Finances are those finances, which are given on demand. It is a single
transaction. It can be long, medium and short term. Markup is also charged. Here the
amount can be withdrawn once at the time of disbursement.
Running Finances:
It is always a short-term loan i.e., one-year. It can be withdrawn at any time and
deposited at any time. It is basically for running day today business operations. This type
of loan is provided to the person who has the strong relation with the bank.
Cash Finances:
Cash finances are for a limited period of time i.e., one year. It is advanced to people to
complete the working process.
Fixed Asset Financing:
This type of account is provided to the business for the purchase of fixed assets and
the assets are considered as the security.
Overdraft
This type of loan is provided to the individual that has very healthy position and
they are allowed to draw up to the limit if there is no balance in the account. The rate
of interest is charged on the daily basis.
Auxiliary function :
These are the functions that have the secondary position in the bank point of view.
These functions are cause to attract the customer. Banks performs this kind of
functions as per demand on the extra charges.
Collection of Cheques:
MCB acts as an agent to its customers in the collection and payment of cheques,
bills and promissory notes. This is done on the behalf of the customer and MCB
charges the commission.
Locker:
MCB also provides locker facility to its valuable clients. Where people can keep
their precious ornaments.
Collection of Dividends:
The bank provides a very useful service in the collection of dividends or interest
earned on stocks and shares held by his customers. The customer is simply to inform
the issuer of the securities that the interest on the securities is to be credited to his
account in the bank.
Purchase and Sale of Securities:
MCB is authorized by the customer, purchase or sale securities on his behalf and
thus adds other benefits to his portfolio.
Transfer of Funds:
MCB also transfer funds of the customers from one bank to another bank. If the
transfer is at one station, they don’t charge any commission and even if they charge,
they charge on reduce rate
Issue of Traveler’s Cheques:
The bank has introduced the schemes of Rupee Travelers Cheques and issues them
for the convenience of travelers and charges a nominal commission. In addition to these
bank also performs a number of functions and activities for and on behalf of its clients
with the sole purpose of serving them to the best of its capabilities and potentialities.
Discounting Bills Of Exchange:
The bank utilizes their surplus funds in another important way. They discount
the bills of exchange at their market worth, i.e., the pay to the holders of the bill an
amount equal to their face value after deducting interest at the current market rate for
the period the bill has to mature. The bills of exchange are a very liquid asset for a bank
to hold. These bills are usually drawn for three months and are used for financing
internal as well as external trade.
Acts as a Referee:
MCB provides a useful service to his customers by acting as a referee for his credit
worthiness. The information is supplied in almost secrecy and is based impartially on
the respectability and financial standing of the client.
Foreign Exchange Business:
MCB transacts foreign exchange business by discounting foreign bills of exchange
and thus provides f facilities for financing the foreign trade.
AWARDS OF MCB:
EUROMONEY AWARDS:
Best Bank In Asia Award 2008
MCB has been awarded as a Euro money Award 2008 for the “Best Bank in Asia".
Best Bank In Pakistan Award 2006 MCB has yet again received the esteemed Euro money Award for the “Best Bank in
Pakistan”. It is the only bank to receive the Euro money Award for Excellence for the sixth
time in the past seven years.
Best Bank In Pakistan Award 2005 MCB has again received the esteemed Euro money Award for the “Best bank in
Pakistan”. It is the only bank to receive the Euro money Award for Excellence for the fifth
time in the last six years.
Best Bank In Pakistan Award 2004 In a continuous winning streak, MCB once again takes pride in being conferred with Euro
money's prestigious award of excellence, for being the "Best Bank in Pakistan" for the
fourth time in the last five years.
Best Bank In Pakistan Award 2003 MCB believes in you. Together we work with quality, integrity and dedication, striving to
achieve collective success by understanding changing trends and assimilating into diverse
cultures. Your trust in our ability and our commitment to deliver has again won us the Euro
money Award 2003 for the "Best Bank in Pakistan".
Best Bank In Pakistan Award 2001 Your trust and our commitment is always an award winning combination MCB was
awarded as a Euro money Award 2001 for the " Best Bank in Pakistan".
Best Domestic Bank Award 2000 MCB was awarded as a Euro money Award 2000 for the " Best Domestic Bank in
Pakistan".
ASIA MONEY AWARDS:
The Best Domestic Commercial Bank Award 2005 MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic
Commercial Bank in Pakistan" for the year 2005.
The Best Domestic Commercial Bank Award 2004 MCB has a distinction of winning the Asia Money 2004 award for being "The Best
Domestic Commercial Bank in Pakistan".
4- ORGANIZATIONAL STRUCTURE
1. Purpose clearly defined of MCB
2. Different operational departments of MCB
3. Planned design of MCB
4. Work specialization of MCB
5. Departmentalization of MCB
6. Formalization of MCB
7. Organizational Hierarchy of MCB
8. Chain of command in MCB
9. Span of control in MCB
4- ORGANIZATIONAL STRUCTURE
As MCB is a banking company listed in stock exchange therefore it follows all
the legalities, which are imposed by concerned statutes. MR. Mian Mohammed Mansha
is chairman & chief executive of the company with a team of 10 directors and 1 vice
chairman to help in the business control and strategy making for the company.
A team of 10 professionals is handling operational management of the bank. MR. Mian
Mohammed Mansha also heads this team.
The different operational departments are:
Consumer Banking & IT Division
Financial & Inter Branch Division
Banking Operations Divisions
HRD & Legal Division
Financial Control & Audit Division
Credit Management Division
Commercial Banking Division
Corporate Banking DivisionMCB is
of Pakistan with a deposit base of Rs. 368 Billion
Departmentalization on the basis of Geography:
The Principal Office of the bank is located in Karachi. Then we have two Area
Offices namely Area Office South and Area Office North.
Area Office South manages the operations in Sindh and Baluchistan while Area Office
North is responsible for the activities in Punjab, N.W.F.P, and AJK.
Each Area Office is in turn divided into circles. To make administration easier, each
circle is divided into various regions. The regional offices are responsible for the affairs
of the branches operating in their domain
Relationship of head office to the branch offices:
In MCB decision, strategies, policies are made by the top level management
and these are implemented in each branch. Top level management don’t involve the
lower management in decision making process. MCB is the pioneer of computerization,
as far as it has a very developed and fastest network. So the head office and all of its
branches are linked through a electronic network, that make possible easy and in time
transformation of the important information.
Departmentalization on the basis of Function:
The whole organization is divided into various divisions on the basis of the
functions performed by them. Each division specializes in a particular area of
operations. For example, we have Agriculture Division dealing with loans and other
programs related to the agricultural sector, Audit Division for keeping a check on the
financial affairs of the organization and IT Division for maintaining a computerized
database of the organization and other activities related to the computerization of the
bank. The number of divisions is not fixed and frequently changes either due to merger
of existing divisions or creation of new ones.
Chairman
Board of Directors
Chief Executive/President
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
OG-1 OG-2 OG-3
Clerical Staff
Non Clerical Staff
Figure 1: Organizational Hierarchy of MCB
Figure 2: BRANCH NETWORK OF MCB
Source: MCB Annual report 2001
Bahrain
Overseas Branches
38 Branches
2 Regions
1 Circle
262 Branches
12 Regions
5 Circles
199 Branches
7 Regions
2 Circles
710 Branches
25 Regions
10 Circles
BaluchistanSindhNWFPPunjab
Principal Office
Area Office North Area Office South
Sri Lanka
Figure 3: DIVISIONS OF MCB
(Source: MCB Manuals)
MCBHEAD
OFFICE
Central Accounts Agriculture Division
PTC and Master Card
Investment Banking
HRDDivision
Finance and Treasury
Special Assets Management
Islamization Division
Business Dept and Marketing
Inspection And Audit
Control Accounts
Credit Management
General Service Division
Industrial Credit
Information Management
Foreign Trade
Corporate Affairs
Training Division
O & M Division
Informational Division
5- ORGANIZATIONAL STRUCTURE OF
HUMAN RESOURCE MANAGEMENT
(HRM) DEPARTMENT
1. Human Resource Management Department
2. HR functions in MCB
3. Contribution of HR Department to the Business Strategy
4. Hierarchy of HRM Department of MCB
5- ORGANIZATIONAL STRUCTURE OF
HUMAN RESOURCE MANAGEMENT
(HRM) DEPARTMENT
Human Resource Management Department:
Human resource management is responsible for the people dimension of the
organization. It is responsible for getting competent people, training them to perform at
high effort levels, and providing mechanism to ensure that these employees maintain
their productive affiliation with the organization.
“Our focus is on building stand alone strength”
The MCB believes in investing in its people. On this account they have very
comprehensive and effective Human Resource Development system. Since
privatization the Human Resource Department has adopted the strategy of streamlining,
paving the way for unyielding competitiveness.
THE HR FUNCTIONS:
At The MCB Ltd. because people are the key to its success, the Human
Resource Department (HRD) champions the importance of the individual while
thinking strategically.
HR facilitates the creation of an environment in which people have the means to
constantly evolve in striving for continuous improvement for the benefit of all
stakeholders.
Positioned as a strategic business unit within the corporate structure of the
MCB, the HRD's has as its prime responsibility to contribute to the organization’s
effectiveness by engaging its people and aligning the policies and procedures and
systems to the strategy of the business. It is through this that the HRD adds value to the
institution.
The Human Resource Department (HRD) facilitates and partners with its
customers (MCB Staff) in implementing the planned strategy by adopting a ‘Can Do
Attitude’. HRM department of MCB is shown in Figure-4.
More specifically the HRD contributes to the business strategy through:
Competency based HR systems
Policy and Procedures
Developing Capabilities
Performance Management
Transparent and Open Communication
Reward and Recognition
Employee Satisfaction
Diversity
Compliance
Human resource management department works for the betterment of the
employees. It enhances their skills, training management, service skills, service
benefits, wages, medical facilities, staff loans are basic functions of this department.
Figure 4: HRM DEPTT. OF MCB
Source: MCB HR Management
General Manager
HRM
Senior HR Executive
( Compensation & Benefits )
HR Manager( Performan
ce Appraisal)
HR Manager ( Training
& Developme
nt )
Senior HR Executive ( Recruitment &
Selection )
HR Manager
Documentation
HR Manager
( Interview &
selection)
6- HUMAN RESOURSE MANAGEMENT
PROCESS IN THE ORGANIZATION
HRM PROCESS IN MCB
Human resource planning and forecasting
Employee Selection and Recruitment
Training And Development
Performance Management
Employee Compensation And Benefits
Organizational Career Management
6- HUMAN RESOURSE MANAGEMENT
PROCESS IN THE ORGANIZATION
The HRM process consists of interrelated activities in Muslim Commercial Bank, i.e.
Recruitment
Selection
Training
Compensation and supervision
When applying the process diversity, labor laws and privacy is considered.
6.1- Human resource planning and forecasting:
Human resource planning and forecasting includes the specific and interrelated activities
that together constitutes HRP system:
HRP Process:
These are steps of HRP in Muslim Commercial Bank.
Determining the Objectives.
Defining skills required to meet the objectives.
Determine additional human resource requirements.
Develop actions to meet the anticipated HR needs.
Forecasting HR Requirements:
The purpose of forecasting of human resources is to estimate labour requirements at
some future times period. Such forecasts are of two types.
1. The external and internal supply of labour
2. The aggregate external and internal supply of labour
Internal supply forecast relates to the conditions inside the organization, such as age
distribution of the work force, terminations, retirements and new hires within the jobs.
External supply forecast relates to hire the candidates from external labour market in
order to fill the talent gap in the organization.
Demand forecast is subject to many uncertainties like economic conditions,
technological advancement and competition.
Methods To Forecast HR Needs:
Zero-base Forecasting:
This method uses the MCB’s current level of employment as the starting point
for determining future staff needs in MCB.
Bottom-up Approach:
It is the forecast method in which each successive level of the MCB, starting
with the lowest and forecasts its employee requirements in order to ultimately
provide an aggregate forecast of employee needs.
Use of mathematical models:
Mathematical models are also used for forecasting HR requirements. It defines
relationship between demand and the number of employees supplied.
Simulation:
It is a technique for experimenting with a real world situation through a
mathematical model representing that situation.
Some of the major components of Human Resource Policy are listed below in this
chapter.
6.2- Employee Selection and Recruitment:
“People are at the heart of our success”
“Recruitment is the discovering of potential applicants for actual and
anticipated organizational vacancies”.
The caliber of the work force of an organization largely determines its strengths
and its success as an enterprise. The employment policies of many organizations are not
formalized. They have just evolved as practices over the course of many years.
MCB is interested in attracting and hiring the very best people in the market.
“We understand the integral role you play in our continued success. We're
committed to providing you with a candidate experience that is robust,
transparent and gives you the power to make choices.”
The MCB has very orderly and impartial procedure for selecting people. In fact
it is the only bank in private sector with such an extensive and irrefutable selection
process.
Human Resource Department has combined many selection techniques i.e. job
application form, employment test, interview, and physical examination. Recruitment
process is shown in Figure-5.
The step to step Recruitment process followed by organization is:
Job Analysis
Planning
Sourcing
Screening
Interviewing
Hiring
Reporting
1. Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind
of person who should be hired for it is called 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.
The methods which are used in collecting job analysis information are
The interview
Questionnaire
Figure 5- Recruitment process
Source: Managing Human Resource
2. Planning:
Planning includes both workforce planning and individual recruitment planning.
Workforce planning typically focuses on forecasting staff and skill gaps in the most
business-critical positions, while individual recruitment planning focuses on sourcing
and screening strategies for specific vacancies.
3. Sourcing:
Sourcing focuses on activities to attract both passive and active candidates.
Common strategies include advertising, marketing at select schools and organizations,
managing employee referral programs, and cross-marketing new positions to prior
applicants.
4. Screening:
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.
5. Interviewing:
Interviewing includes in-person reviews designed to select a final candidate.
Common strategies include peer interviews, panel interviews, and the use of
behaviorally-based interview techniques.
6. Hiring:
Hiring focuses on persuading the selected candidate to join the organization.
Common activities include making the job offer, negotiating terms and conditions of
employment, and all pre- and post-start on-boarding.
7. Reporting:
Reporting includes all post-hire data collection, monitoring, and reporting.
Common activities include surveying applicants and hiring managers, collecting and
analyzing applicant flow data, and reporting performance measures and processing
metrics.
Purpose and Importance of Recruitment:
The Purpose and Importance of Recruitment are given below:
Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants.
Sources Of Candidates:
Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external sources. The
sources within the organization itself (like transfer of employees from one
department to other, promotions) to fill a position are known as the internal sources
of recruitment. Recruitment candidates from all the other sources (like outsourcing
agencies etc.) are known as the external sources of the recruitment.
1. Internal sources:
Some Internal Sources Of Recruitments are given below
I. Transfers:
The employees are transferred from one department to another according to
their efficiency and experience.
II. Promotions :
The employees are promoted from one department to another with more
benefits and greater responsibility based on efficiency and experience.
III. Others are Upgrading And Demotion of present employees according to
their performance.
IV. Retired And Retrenched Employees may also be recruited once again in
case of shortage of qualified personnel or increase in load of work.
Recruitment such people save time and costs of the organizations as the
people are already aware of the organizational culture and the policies and
procedures.
V. The dependents and relatives of Decreased Employees And Disabled
Employees are also done by many companies so that the members of the
family do not become dependent on the mercy of others.
2. External Sources:
Some External Sources Of Recruitments are given below
I. Press Advertisements:
Advertisements of the vacancy in newspapers and journals are a widely
used source of recruitment. The main advantage of this method is that it has
a wide reach.
II. Educational Institutes:
Various management institutes, engineering colleges etc. are a good
source of recruiting well qualified executives, engineers. They provide
facilities for campus interviews and placements. This source is known as
Campus Recruitment.
III. Placement Agencies :
Several private consultancy firms perform recruitment functions on
behalf of client companies by charging a fee. These agencies are particularly
suitable for recruitment for executives and specialists. It is also known as
RPO (Recruitment Process Outsourcing).
IV. Employment Exchanges:
Government establishes public employment exchanges throughout the
country. These exchanges provide job information to job seekers and help
employers in identifying suitable candidate
V. Unsolicited Applicants :
Many job seekers visit the office of well-known companies on their
own. Such callers are considered nuisance to the daily work routine of the
enterprise. But can help in creating the talent pool or the database of the
probable candidates for the organization
VI. Employee Referrals / Recommendations:
Many organizations have structured system where the current employees
of the organization can refer their friends and relatives for some position in
their organization.
Also, the office bearers of trade unions are often aware of the suitability of candidates.
Recruitment Management can inquire these leaders for suitable jobs. In some
organizations these are formal agreements to give priority in recruitment to the candidates
recommended by the trade union.
Employment Selection Process:
Recruitment and selection in MCB has many processes and steps that must be followed.
Decide what positions to fill, through personal planning and forecasting
Build a pool of candidates for these jobs, by recruiting internal or external
candidates
Have candidates complete application form and perhaps undergo initial screening
interviews
Use selection tools like tests, background investigations, and physical exams to
identify viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps others
interview the candidates.
Analysis of positions and requirement:
After planning it is analyzed that which position is going to be filled and the
requirement is analyze by job analysis.
Identify Candidates:
MCB identifies its candidates by developing the criteria of job description and job
specification and acting upon these criteria job vacancy ads are spread through different
Medias like newspapers and internet.
Prescreening And Short Listing:
Many candidates apply for job in response to vacancy ads by submitting their
CVs. Selection board goes through those CVs and selects those candidates which
initially fulfill criteria of selection board. After prescreening selection board short lists
the candidates who are considered most suitable for job at initial level on the basis of
their resume.
Test/ Interview:
In this process short listed candidates are called for test and interview
according to nature of their applied jobs.
Selection Interview:
Selection interview is conducted for short listed candidates. A selection
interview is the procedure designed to predict future job performance on the basis of
applicant’s oral responses to oral inquiries.
Formats Used In Selection Interview:
Structured/Directed
Unstructured/Non directed
Modes Of Interview:
Penal interview:
An interview in which a group of interviewers questions the applicant.
Structured sequential interview:
An interview in which the applicant is interviewed sequentially by several persons;
each rates the applicant on a standard form.
Types Of Questions:
Situational:
A series of job-related questions that focus on how the candidate would behave in a
given situation.
Job related:
A series of job-related questions that focus on relevant past job-related behaviors.
These types of questions are asked from those candidates who have past experience of
job.
Stress:
An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with
low or high stress tolerance. These sorts of questions are asked according to high
designation of candidate.
Puzzle questions:
Recruiters for technical and finance job use questions to pose problems requiring
unique solutions to see how candidates think under pressure.
Testing:
Organizational performance always depends in part on subordinates having the
right skills and attributes. Keep in view this point MCB tries its level best to hire highly
skilled and suitable employee for each job. For judging these skills MCB conducted
some tests of employees on the basis of
Reliability
Test validity
The consistency of scores obtained by the same person when retested with the
identical or equivalent tests is called reliability and the accuracy with which a test and
interview what it purports to measure or fulfills the function it was designed to fill is
referred as validity.
Types Of Test:
Generally two types of tests are taken MCB:
Tests of Cognitive ability
Physical test
Cognitive Test Abilities Consists Of:
1. Intelligence Tests:
Tests of general intellectual abilities that measure a range of abilities, including memory,
vocabulary, verbal fluency, and numerical ability are intelligence tests.
2. Aptitude tests:
Tests that measure specific mental abilities, such as inductive and deductive reasoning,
verbal comprehension, memory, and numerical ability are aptitude tests.
Tests Of Physical Abilities:
Tests that measure static strength, dynamic strength, body coordination, and
stamina are physical. Job related to guards and deliverers go through this sort of test.
MCB recruits candidates in three cadres:
1. Probationary Officers
2. Management Trainees
3. Contractual Appointments
Most of the recruitments are made through Probationary Officers.
Management Trainees are selected amongst the graduates from foreign universities, or
prestigious national universities i.e. Institute of Business Administration Karachi
(IBA), Lahore University of Management Sciences Lahore (LUMS), and Quaid-e-
Azam University Islamabad.
Contractual Arrangements are made with persons possessing technical
knowledge and expertise related to specific departments like Treasury Department,
Foreign Exchange, and Information Technology etc. The persons hired through these
contractual arrangements are usually appointed at higher posts. Now the Bank also
awards contracts to the people for clerical jobs like cashiers, date entry operators etc
Prerequisites For Probationary Officers:
1. The candidate should be Pakistani citizen
2. The candidate should be under 25 years of age, and preferably unmarried.
3. The candidate should be a graduate.
The candidate fills out specific application form. After screening the
applications only selected candidates are called for test, which is designed to test the
analytical, comprehension, and general knowledge abilities of the candidates. After
passing the test, the candidate undergoes an interview. Those who pass the interview
are referred to a medical board for physical examination.
Final Selection:
After going through all the processes the best candidates according to
MCB’s selection boards are selected. The candidates, who are finally selected, are
offered appointments as probationary officers, after signing the following bonds
1. Bank’s Secrecy Bond
2. Bank’s Security Bond
3. Service Agreement Bond
Orientation:
Just after final selection and before starting of training process orientation
is conducted for selected employees in orientation new employees are provided with
basic background information about the MCB the basic contents of successful
orientation are:
o Information on employee benefits
o Personnel policies
o The daily routine
o Company organization and operations
o Safety measures and regulations
6.3- Training And Development:
“Training is the organized procedure by which people learn knowledge
and/or skills for a definite purpose”.
MCB has a mix of training methodologies for its employees. We can broadly categorize
these methods into five groups:
Needs analysis: Identify job performance skills needed, assess prospective trainee’s
skills, and develop objectives.
Instructional design: Produce the training program content, including workbooks,
exercises, and activities.
Validation: Presenting (trying out) the training to a small representative audience.
Implement the program: Actually training the targeted employee group.
Evaluation: Assesses the program’s successes or failures.
The goal of training is for employees to:
master the knowledge, skill, and behaviors emphasized in training
programs, and
apply them to their day-to-day activities
Assumptions of Training Design Approaches:
Training design is effective only if it helps employees reach instructional or training
goals and objectives.
Measurable learning objectives should be identified before training.
Evaluation plays an important part in planning and choosing a training method,
monitoring the training program, and suggesting changes to the training design
process.
In figure-6, the training process is discussed in detail.
Figure 6: The Training Process
-Needs assessment-Organizationalsupport-Organizationalanalysis-Task and KSAanalysis-Person analysis
Training Needs Assessment:
Effective training practices involve the use of an instructional systems
design process. The instructional systems design process begins by conducting a
needs assessment.
Needs Assessment refer to the process used to determine if training is necessary.
Because needs assessment is the first step in the instructional design process:
If it is poorly conducted, training will not achieve the outcomes or financial
benefits the company expects.
InstructionalObjectives
Development of criteria
Use of Evaluation
SelectionAnd design ofInstruction
Training
TrainingValidity
TransferValidity
OrganizationalValidity
Inter-OrganizationalValidity
Needs assessment involves:
Organizational Analysis – involves determining:
The appropriateness of training, given the business strategy
Resources available for training
Support by managers and peers for training.
Task Analysis – involves:
Identifying the important tasks and knowledge, skill, and
behaviors that need to be emphasized in training for employees
to complete their tasks.
Person Analysis – involves:
Determining whether performance deficiencies result from a lack
of knowledge, skill, or ability (a training issue) or from a
motivational or work design problem.
Identifying who needs training.
Determining employees’ readiness for training.
Performance Analysis:
After analyze the main tasks required in performing jobs it is verified that
there is a performance deficiency and determining whether that deficiency
should be corrected through training or through some other means (such as
transferring the employee). If there is found some deficiency in performing job then
training is highly recommended to recover deficiencies.
Training methods used by MCB:
On-the-job Training
Off-the-job Training
Apprenticeship Training
Informal learning
Effective lectures
On-the-job Training:
Having a person learn a job by actually doing the job is OJT. Methods of OJT are:
I. Coaching or understudy
II. Job rotation
III. Special assignments
IV. Action Learning
Coaching or understudy:
It is the OJT method in which employee is coached and taught by profession
that how to do the job in order to meet MCB’s goals and objectives.
At managerial level the trainee works directly with a senior manager or with
the person he or she is to replace; the latter is responsible for the trainee’s coaching. It
is done at all levels of job. New employees are trained through coaching and old
employees are also trained through this method like when some new innovation is
introduced old employees are trained in order to handle that new innovation. In 2008
all managers have been trained to operate Misys Software (Automation of service
provision and book management).
Job Rotation:
Moving a trainee from department to department to broaden his or her experience
and identify strong and weak points. Job rotation is usually done at managerial level.
MCB’s Manager Associate (MA) program is used for job rotation training.
Special Assignments:
Special assignments are also given to employees for special training. These
assignments are actually related to tasks within the branch by achieving those tasks
assigned by trainer, employee get training.
Action Learning:
Management trainees are allowed to work full-time analyzing and solving
problems in other departments. This OJT method is just for managerial level
employees.
Off-the-job Training:
It is the method which is opposite to the OJT. In this method employee does not
get training at his/her work place. This method of training is only for managerial level
employees. Off-the-job training methods are:
o Case study method
o Outside seminars
Case Study Methods:
Special case studies are given to employees which contains some dilemma about
banking sector. By solving those case study problems employee gets training to take
bold and effective decision in crucial situations.
Outside Seminars:
MCB encourages its employees to participate in the seminars arranged by
banking sectors not just in the Pakistan but also beyond the borders. By participating in
outside seminars employee gets authentic knowledge about the new horizons of banking
sector which is useful for MCB and makes it leading bank in Pakistan.
Apprenticeship Training:
A structured process by which employees become skilled workers through a
combination of classroom instruction and on-the-job training. It is actually combination
of OJT and lectures delivered to employees. It may be for both levels of managerial and
fresh employee. In this method employee is first given the lecture about his/her job and
after that implementation of lecture in practical field is observed.
Informal Learning:
The majority of what employees learn on the job they learn through informal
means of performing their jobs on a daily basis.
Effective Lectures:
Lectures about jobs are also delivered. These lectures are delivered to new
employees as well as senior level employees and managerial level too. In these lectures
employees are prepared for facing new challenges in the banking sectors and also told
them how to achieve those challenges.
Training and Development at MCB Pakistan:
The management of MCB believes that systematic training and development helps the
Bank's human resource in acquiring professional skills and expertise, which in turn gives
MCB a sustainable edge over their peer banks in the today's competitive business
environment. Ongoing learning for all is therefore one of the priority areas at MCB.
The objectives of training activities are to keep MCB employees abreast of latest
professional knowledge and skills in all areas of banking, as well as to reinforce a passion
for the highest quality of customer service at all levels.
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. Branches, Area Offices and Head
Office Divisions/Departments are to send their nominations for training courses at least
two weeks prior to the start of a training course. Employees may also take the
initiative and get themselves nominated through their supervising officers for training
courses relevant to their needs.
The Bank has the latest state-of-the-art training facilities at its Training &
Development Center (TDC) and a dedicated training team to look after most of the
training needs of its employees.
MCB uses following programs for training and development
Management Trainee
Management associate
Cash officers
Internships
Management Trainee:
MCB’s Management Trainee (MT) program looks for highly motivated individuals
who exhibit the potential to excel as future leaders.
The program is geared towards providing challenging work assignments complemented
by a learning component for select individuals from reputable universities. At MCB, the
MT program offers extensive interactive classroom training, on the job rotations and
personal mentoring from senior management to provide a comprehensive learning
experience. The objective of the program is to realize potential and translate the
experience into a successful banking career.
Management associate:
MCB’s Management Associate Program is a training and rotational program
focused on dealing with branch banking requirements. It provides accelerated
development opportunities across MCB’s branch network of Retail, Corporate &
Commercial banking. During this program, candidates are assigned with challenging
business scenarios to enhance their critical and analytic skills.
Another crucial element of the program ensures that managerial skills are honed
and developed. This provides associates with the expertise required to handle
supervisory and administrative tasks that will result in the development of successful
business managers.
Cash officers:
MCB’s Cash Officers Program catapults successful candidates to the front lines
of the bank. Candidates in this program are the bank’s ambassadors and must have
exemplary skills in dealing with clients. The program involves an extensive one-month
training period based on branch banking operations before placement in the branches.
Energetic and focused graduates from HEC recognized institutions with good
communication and interpersonal skills qualify for MCB’s Cash Officers Program.
Before being placed at MCB branches, these individuals must exhibit a proven ability
to add value and act as agents of change.
Internships:
MCB’s Internship Program offers promising students with the exciting opportunity
to apply their classroom learning experience to real life corporate assignments. Through
the program, internees can support their career goals by using the internship as a
launching pad for creating contacts with professionals in the field and identifying their
own competencies to build a successful career with MCB.
EMPLOYEE DEVELOPMENT:
Employee development is a joint, on-going effort on the part of an employee and the
organization for which he or she works to upgrade the employee's knowledge, skills, and
abilities. Successful employee development requires a balance between an individual's
career needs and goals and the organization's need to get work done.
Employee development programs make positive contributions to organizational
performance. A more highly-skilled workforce can accomplish more and a supervisor's
group can accomplish more as employees gain in experience and knowledge.
MCB- A Knowledge-Based Institution :
The expertise and personal dedication of our staff are decisive factors to the success of
our institution, and in our endeavor to deliver first-class financial services. That's why The
MCB Ltd has set high standards for the professional development of its staff.
The Group has a tradition of life-long training both in-house and externally. Rapid
change requires skilled, knowledgeable workforce with employees who are adaptive,
flexible and focused on the future.
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...
The recent past has seen an increase in the number of employees sent abroad for skill
development to support the diversification strategy into financial services.
In MCB, Regular in-house training programs offered by the TDC in-house are as follows:
In-Service Training Programme:
Basic Course on General Banking Operations 4 days Officers working in general &
consumer banking departments.
Account Opening & Customer Relationship 2 days Officers in-charge of account
opening.
Clearing, Collections and Remittances 2 days Employees working in these areas.
Advanced Course in General Banking Operations 3 days Operations' managers.
Basic course in Processing of Credit Proposals 2 days Credit officers.
Analysis & Interpretation of Financial Statements 2 days Credit officers.
Credit Administration & Documentation 2 days Credit Adm. Officers.
Elementary Course in Trade Finance 4 days Officers working in trade finance.
Advanced Course in Trade Finance 3 days experienced trade finance officers.
Time Management and Personal Effectiveness 1 day Officers in Range III and above
who have not attended this course.
Customer Service Skills Workshops 1-2 days All MCB’ employees.
Telephone Handling Skills 2 days All MCB’ employees handling telephone calls.
Selling Skills 2 days All MCB employees at branches.
Performance Appraisal Workshop 1 day All MCB employees.
At the beginning of every quarter, TDC announces dates for training courses for the
following quarter.
These courses are planned on the basis of training requirements received from
area offices, branches or Head Office Divisions/Departments, either through employee
appraisal forms or by specific demand from time to time. TDC may also design and
offer additional training programs in other areas in response to specific training needs
expressed by its internal customers.
Some specialized courses, especially at an advanced level, may be outsourced by using
reputable academic institutions and management consultants.
In-house training workshops:
In-house training workshops cover a wide range of topics which, while helping
to bring employee knowledge up to date, enhance awareness of the different activities
of the Group and as such improve their effectiveness in their dealings with customers.
One of our comprehensive ongoing in-house training programmes is the Service Plus
course which falls very much in line with our corporate value of customer care. The
ACIB mentoring programme launched in September 2000 has been largely successful
with considerable improvements in pass rates.
Training Process:
The 'Training Process' is an ongoing venture at the Bank; and in light of the
importance of upgrading the skills of our employees, a team dedicated to excellence, is
constantly striving to find new ways to deliver exclusive training and development
solutions to MCB Staff.
In order to compete in a high-speed pace business environment and meet the
dynamics of evolving customer expectations, expertise coupled with dedication is the
key to turning dreams into reality -- 'To be the obvious choice for financial services
in the region and beyond'.
Muslim Commercial Bank’s Employee Development Recognized By
Global Accountancy Body:
ACCA (the Association of Chartered Certified Accountants), the world’s largest
and fastest-growing professional international accountancy body, has recognised
Muslim Commercial Bank for qualifying as an “ACCA Platinum Level Approved
Employer” under trainee development scheme.
This status acknowledges the high standards of training and development which MCB
provide to its employees
As part of the programme, employers whose training schemes meet ACCA’s
rigorous criteria can become ACCA Approved Employers under the professional
development stream, and are rewarded with a broad range of tools to help implement
their staff development programmes. These include e-learning resources such as online
courses, a continuing professional development (CPD) planning tool known as the
professional development matrix and a knowledge library, an internet based research
resource tool.
Mr. Arif Masud Mirza – Head of ACCA Pakistan, said:
‘Increasingly, the provision of comprehensive training and development is seen
as an important factor by employees when considering which employer to choose.
ACCA’s approved employer programme provides a benchmark of good practice to
employers around the world and gives public recognition to these organizations for the
quality of support and training they invest in their employees.”
6.4- Performance Management:
It is the description of job-relevant strengths and weaknesses
of an individual or a group.
Setting and clearly communicating performance standards and expectations,
observing and providing feedback, and conducting appraisals enable you to achieve the
best results through managing employee performance.
To begin the process, you and the employee will collaborate on the development
of performance standards. You will develop a performance plan that directs the
employee's efforts toward achieving specific results, to support organizational growth
as well as the employee's professional growth. Discuss goals and objectives throughout
the year, providing a framework to ensure employees achieve results through coaching
and mutual feedback. At the end of the rating period, you will appraise the employee's
performance against existing standards, and establish new goals together for the next
rating period. Elements of performance management are shown in Figure-7.
Role Of Immediate Supervisor & Branch Manager / Unit Head:
Performance appraisal is an interactive exercise between the immediate
supervisor and the staff member reporting to him/her. A supervisor is defined as the
person to whom one or more employees report on a regular basis. Branch Managers and
Unit Heads supervise this interaction from a distance, and try not to dominate the
proceedings. With their greater maturity and experience, they discreetly guide the
process in order to empower the departmental heads to assume greater responsibility in
this area.
The Branch Managers and Unit Heads however, continue to bear the ultimate
responsibility for successful completion of the exercise. They discuss the goal setting
done by their departmental heads and place second signature on appraisal forms of all
non-supervisory staff. Supervisory staff is evaluated by the Branch Manager and Unit
Heads directly. In addition to personal skills, their supervisory skills are also evaluated,
using the second page of the appraisal form for 'Managerial' staff.
Setting Performance Standards:
In MCB, performance expectations are the basis for appraising employee
performance. Written performance standards let supervisor compares the employee's
performance with mutually understood expectations and minimize ambiguity in
providing feedback.
Having performance standards is not a new concept; standards exist whether or
not they are discussed or put in writing. When observed an employee's performance,
supervisor usually makes a judgment about whether that performance is acceptable.
How do you decide what's acceptable and what's unacceptable performance? The
answer to this question is the first step in establishing written standards.
Standards identify a baseline for measuring performance. From performance
standards, supervisors can provide specific feedback describing the gap between
expected and actual performance.
Effective performance standards:
Serve as an objective basis for communicating about performance.
Enable the employee to differentiate between acceptable and unacceptable results.
Increase job satisfaction because employees know when tasks are performed well.
Inform new employees of your expectations about job performance.
Encourage an open and trusting relationship with employees.
As the immediate supervisor, you play an important role; your closest interaction with the
employee occurs at this level.
Performance Standards
Observation and Feedback (Coaching)
Absolute Category Rating (ACR)
Performance Appraisal
Observation and Feedback (Coaching):
Once performance objectives and standards are established and clearly
communicated, branch manager observes employees' performance and provide feedback.
Branch manager has a responsibility to recognize and reinforce strong performance by an
employee, and identify and encourage improvement where it is needed. He provides
informal feedback almost every day.
By observing and providing detailed feedback, manager plays a critical role in the
employee's continued success and motivation to meet performance expectations.
Coaching is a method of strengthening communication between manager and the
employee. It helps to shape performance and increase the likelihood that the employee's
results will meet the expectations. Coaching sessions provide manager and the employee
the opportunity to discuss progress toward meeting mutually-established standards and
goals. A coaching session focuses on one or two aspects of performance, rather than the
total review that takes place in a performance evaluation.
Guiding Principles:
Effective coaching can:
Strengthen communication between branch manager and the employee.
Help the employee attain performance objective.
Increase employee motivation and commitment.
Maintain and increase the employee's self-esteem.
Provide support.
Absolute Category Rating (ACR):
A method of evaluating transmitted voice quality where subject’s rate (from 1 to 5)
short groups of unrelated sentences under controlled conditions. ACR is a category
judgment method where the test sequences are presented one at a time and are rated
independently on a category scale. (This method is also called Single Stimulus
Method.)
Subjects are asked to rate the quality of the presentation based on the level of the
quality they have in their opinion for it after viewing or listening it. This phase is
named the voting time. The voting time should be less than or equal to 10 seconds. The
five-level scale for rating overall quality is the most used scale, if higher discriminative
power is required; a nine-level scale may be used. It is a test method used in quality
tests. It has been standardized in ITU-T Recommendation. In this method, a single test
condition (generally an image or a video sequence) is presented to the viewers once
only. They should then give a quality rating on an ACR scale. Test conditions should be
presented in random order.
Table 8: Absolute Category Rating
Table 8.1: ITU 5-point quality scale
Grading value Estimated Quality
5 Excellent
4 Good
3 Fair
2 Poor
1 Bad
Table 8.2 : ITU 9-point quality scale
Grading value Estimated Quality
9 Excellent
8
7 Good
6
5 Fair
4
3 Poor
2
1 Bad
Table 8.3: Eleven-point quality scale. 10 score for the sequence(s) that is identical to the reference one. Similarly, 0 score is for the sequence that has no similarity with the reference.
Figure 8.4: ITU 5-point impairment scale
Grading value Estimated Quality
10 Best
9 Excellent
8
7 Good
6
5 Fair
4
3 Poor
2
1 Bad
0 worst
Grading value Estimated impairment level
5 Imperceptible
4 Perceptible, but not annoying
3 Slightly annoying
2 Annoying
1 Very annoying
Performance Appraisal:
MCB Pakistan’s performance appraisal system is based on a combination of 'MBO'
and 'Enabling Traits' approaches, under which:
60% weight age is given to performance goals discussed and laid out in the beginning
of the year.
Another 40% weight age is assigned to enabling personality factors, which are clarified
to all employees by their supervising officers at the start of each year.
The system and process flow of the appraisal process is modified, improved and
upgraded from time to time in line with the Bank's requirements, as well as with
industry practices. HR Department notifies all units of the Bank of the PA system and
procedure currently in use. Units are also notified deadlines for goal setting, form
filling, monitoring and final appraisals.
Salary increases and adjustments are based on performance of employees during
a calendar year and are finalized during the first quarter of the New Year. Grade
promotions on the other hand are based on the -availability of higher positions,
employees' ability to fill those positions and sustained high performance during the last
few years, and are finalized during the second quarter of each year.
MCB’ Objectives Of Performance Appraisal:
1. Improving the performance of the Bank and its staff members
2. Laying a solid foundation for relationships between staff and management.
3. Clarifying performance targets for all.
4. Using the process for career planning and professional development of staff.
5. Review of salary, assignment and career path.
6. Award of bonuses.
7. Promotion to higher salary ranges and functional responsibilities.
Need, Importance And Advantages Of Performance Appraisal:
Scientific basis for judging the merit or worth of employees
Sound basis for promotion, demotion, transfer or termination of employees.
Helps in distinguishing between efficient and inefficient workers.
It reveals the defects in the selection procedure
Helps to know the potentials of the subordinates systematically.
Helps correct placements.
It helps in constructively guiding the employees.
It prevents grievances and develops a sense of confidence.
Protects the management against the charges of discrimination.
How Performance Reports Are Written?
MCB have a very regular and transparent appraisal system. The basic
requirement for the consideration to be promoted is three years period. A performance
is used for appraisal which has different ratings. According to these ratings employees
are given different ranks and starting from A to E. rank E is the worst. Employees
performance position is communicated him to writing so that he can improve. Benefit
of transparent appraisal is that employee can himself work out his performance on
criteria.
Performance appraisal in MCB involves making Absolute Category Rating
(ACR)’s of the subordinates. That is, a branch manager writes the ACRs of employees
in his branch, a Regional Manager writes the ACRs for the various Branch Managers
working under him and so on.
An ACR contains such information as the employee background, nature of his
work, performance of employee, performance rating and recommendations. These
ACRs are sent to the GM Office from where they are forwarded to the Human
Resource Division.
Figure 7: Elements Of Performance Management System
Define performance Set objectives
Encourage PerformanceProvide timely awards that are valued by employees.
Facilitate Performance Provide Resources
TO ENERGIZE EMPLOYEEPERFORMANCE
Source: Managing Human Resources
6.5- Employee Compensation And Benefits:
An organization reward system is a program or scheme which provides
incentives for those individuals or groups who perform well in the organization. This
reward system in actual motivates employees to perform well by attracting with well
designed incentive packages. It includes anything an employee values and desires that
an employer is able and willing to offer in exchange for employee contribution.
Compensation is payment to an employee in return for their contribution to the
organization, that is, for doing their job. Compensation includes topics in regard to
wage and/or salary programs and structures, for example, salary ranges for job
descriptions, merit-based programs, bonus-based programs, commission-based
programs, etc.
Employee benefits typically refers to retirement plans, health life insurance, life
insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits
are increasingly expensive for businesses to provide to employees, so the range and
options of benefits are changing rapidly to include, for example, flexible benefit plans.
Rewards bridge the gap between organizational objectives and individual
expectations. To be more effective, organizational reward systems should provide four
things.
1. Legal compliance with all appropriate laws and regulations
2. Cost effectiveness for the organization
3. Internal, external, and individual equity for employees
4. Performance enhancement for the organization
All reward systems are based on the assumptions of attracting, retaining and
motivating people. Financial rewards are an important component of the reward system.
These incentives can be monetary or non-monetary. It is shown in Figure-8.
Figure 8: Organizational Reward System
REWARD SYSTEM
FINANCIAL NON-FINANCIAL
Direct payments(Salaries)
Indirect Payments(Benefits)
Protection Programs
Employee involvement in decision making
Effective Supervision
Recognition
Training opportunities
Supportive, nurturing company culture
Source: Managing Human Resource
Types Of Compensation And Benefits:
For employers, compensation costs must be at a level that both ensures
organizational competitiveness and provides sufficient rewards to employees for their
knowledge, skills, abilities, and performance accomplishments. Balancing these facets
so that the employer can attract, retain, motivate (ARM) and reward the performance of
employees requires considering several types of compensation.
Financial Benefits:
o Life Insurance
o Disability Insurance
o Medical Allowances
o Pension Plans
o Severance Pay
o Conveyance Allowance
o Bonuses
o Profit Sharing
Non-Financial Benefits:
o Sound Working Environment
o Training And Development
o Job Security
o Pick And Drop Facility
o Sick Leave/ Vacations
o Flexible Work Arrangement
o Flex Hours
Compensation And Benefits In MCB:
MCB awards their employees a lucrative 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
Non Interest Loans:
They are also offered non-interest loans from the bank which prohibits the payment
or acceptance of interest fees for loans of money.
Cash Prizes:
There are also some cash prizes for employees who show better performance. Those
employees, who pass IBP part 1 exam in first attempt, are offered Rs.60, 000 cash prize
or two increments.
Similarly those who pass part 2 exams are offered Rs.100, 000 or three increments.
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
1.
House Building Loan:
Of the employees who don’t have reasonable accommodation, MCB offers a very
suitable house building loan.
Contain share of the credit is free certain portion is on low mark up base. Any
employee can get 80 times loan of its basic salary. For example if an employ can get loan
of two lac, and forty thousands.
Conveyance Loan:
MCB is giving medical facility for their employees. For that every good hospitals one
in its panel officers are offered this facility for them, their spouse and children. For None of
them – officers, parents are also included for medical facility.
Education Allowance:
MCB is also giving education allowance for the children of employees. Education
allowance is for none of them – officers only. Officers already have reasonable salaries,
which covers all of their needs.
Computer Loan Facility;
They want to train their employees according to the requirements of the current age.
For their financial support in this area, they are offering computer loan facility. So that,
they buy their own computers and make themselves an expert in it.
6.6- Organizational Career Management:
Career is the sequence of the progress and actions taken by a person throughout
a lifetime, especially related to that person's occupations. A career is often composed of
the jobs held, titles earned and work accomplished over a long period of time, rather
than just referring to one position.
"A goal that you desire to achieve in a selected field or occupation with a
well-thought out plan, to get you there is called Career Planning."
In employment context, career planning is continuous process of evaluating
your current lifestyle, likes/dislikes, passions, skills, personality, dream job, and current
job and career path and making corrections and improvements to better prepare for
future steps in your career, as needed, or to make a career change.
Career planning is important because the consequences of career success or
failure are linked closely to each individual’s self concept, identity and satisfaction with
career and life. In the new concept of career management, company and the employee
are partners in career management.
According to a view, “A job is just an opportunity to learn new skills that
you can then peddle elsewhere in the market place “.
The fact is that responsibility of career development belongs ultimately to each
individual. The organization should be a proactive force in this process. To do so,
organizations must think and plan in terms of shorter employment relationship. A
second strategy for organizations is to invest adequate time and energy in job design
and equipment.
Employee job changes:
It is the responsibility of top management to develop and implement a cost-
effective career planning program must fit the nature of the business, its competitive
employment practices and the current (or desired) organizational structure.
This process is complex because organizational career management combines
areas that previously have been regarded as individual issues:
Performance appraisal
Development
Transfer
Promotion
Before coaching and counseling take place, it is important to identify
characteristics career paths that employees tend to follow.
Career paths represent logical and possible sequences of positions that could be
held, based on an analysis of what people actually do in an organization. The development
depends on a variety of factors like personal capabilities, skills, experience and the
opportunities available for training and advancement.
Having a career path is like having a professional insurance policy. With a career
path individuals will probably:
Have a broader skill base:
Individuals will have identified and learned the skills necessary to make you more
attractive to a wider range of employers.
Make logical job transitions:
They will know what skills and responsibilities to look for in the next job.
Have increasing responsibility:
Individuals will have identified and gained the skills and training you need to take on
more responsibility.
Have a broader prospective:
They will be able to understand where a specific job or responsibility fits into your
overall career path plans.
Make decisions easier:
You can look at a situation within a larger context and better evaluate your options.
Earn more:
Individuals are less likely to be underpaid since your career research will tell you what
you should be earning.
Be more satisfied:
They will be moving in a career direction that is designed to meet your lifestyle,
interest and financial goals.
Figure -9 shows the development of a career system composed of individual career paths.
Figure 9: Individual Career Path
Analyze jobs to determine similarities And difference among them.
Step 2 Group jobs with similar behaviors Requirements into job families.
Step 3
Identify career paths within and Among job families.
Step 4 Integrate the overall networks of Career Path into a single career path.
Step 1
Employee Job Changes Within Organization:
Job changes must be made in agreement with the public service rules and
policies in the classified service. Any individual selected or promoted must be skilled
as fit in accordance with and focus to the civil service official procedure. The “state
personnel director” will manage the documentation of each and every promotion &
appointment.
From the organization’s point of view, there are four types of internal moves:
Up (Promotions)
Down (Demotions)
Over (Transfers)
Out (Layoffs, Retirements, Resignations and Terminations)
Job Changes Within MCB:
Promotion:
Promoted employees usually assume greater responsibility and authority in
return for higher pays, benefits and privileges. Promotions help satisfying employee’s
needs for security, belongings and personal growth in terms of their career.
In MCB, promotion is the discretion of the management and cannot be claimed
as a matter of right. The promotion is recommended by the respective selection
committee. The committee makes recommendation for promotions on the basis of the
employee’s performance, achievements of goals, general conduct, communication
skills, peers relationship, teamwork, academic and professional qualification.
In the merit base police of 1999, in general, appraisal of an employee was
foundation of following:
a) Points average gained by the employee in his service during preceding 3
years.
b) Points, he would get in an assessment by the promotion or encouragement
committee.
The given points by the promotion committee, nevertheless, again abridged the
work out to a automatic process as:
60% points were fixed for qualification, service time span and standard of
service.
40% were given to aim criteria. More improvements in the plan are being
considered.
As per rule, an employee reaching the ceiling of the grade is not entitled automatically
to promotion in the next higher grade. Employees are eligible to apply & compare for a
post in a higher grade.
Demotion:
Employee demotion usually involves a cut in pay, status, privileges and opportunities
for higher grades. This practice is rarely found in MCB, because management prefers to
discharge or to move employees laterally rather than demote them. For the reason being,
demotion (Downgrading) creates a sense of dissatisfaction in the employees and lessen
their productivity.
Conditions to demote any employee:
The demotion is asked for by the employee and is accepted by the hiring
authority.
The employee position has been brought to an end.
Employee is not performing adequately.
The employee is put out of place by coming back to duty of another employee
entitled to the position.
The position of employee is downwardly classified.
The employee is demoted by another employee with more superiority during a
decrease in manpower.
The employee does not receive an acceptable trial service score.
Transfers:
Transfer refers to the relocation of employees. Management usually use this
practice just to take advantage of an employee’s competencies to any sector of the
organization where needed. This practice remained common in MCB but the eligibility
criteria for transfer is at least 2 years service in similar position (Same Grade).
In MCB, transfers on request take place only on sympathetic and medical grounds
even as another cause is set off by the bank for meeting its administrative or
organizational necessities that is to fill the available vacancies.
Workers can remain posted in one unit up to 3 years and in a division for up to 6
years, yet some offices used to frequently transfer their employees from one
unit/division to another.
Separations:
Employee Separation is one of the very important and crucial function / process of
HR Department. This process, if not handled in an efficient manner, can lead to various
legal complications. These involve employees moving out of the organization. There are
four types of separations: Layoffs, Termination, Resignation and Retirements.
Layoffs:
Layoffs are involuntary discharge of the employees from the organization.
Layoffs never sound pleasant and management policies must consider the impact on
those who leave, who stay, on the local community and on the organization.
As far as MCB is concerned, layoffs take place when there is excess of human
resource. Layoffs is the short term suspension or lasting termination of service of an
employee or employees’ group for certain reasons, for instance, decisions that some
positions are no more essential or a business is slow or disruption in job.
System of MCB of Pakistan is computerized consequently need of staff no more
in some departments. This can be a bigger cause of layoffs.
Termination:
Usually, this process is perceived negatively by employees. In termination, an
employer uses his right to terminate the contract of an employment. There can be many
reasons for an employer to terminate the contract of employment but some of the
common reasons are:
The end of the agreement for which the employee was in employment.
Employee sickness and incapability to do work.
Removal from offices.
Non- performance.
Indiscipline
Misconduct
Insubordination
Disciplinary Action & Penalties:
Where an employee commits breach of the regulations of the bank or the
complainant is guilty of a false allegation against any other employee or any other act
or improper conduct or wrongdoing or insubordination the competent authority may
impose on him one or more of the following penalties.
Reprimand
Postponement or stoppage of increment or promotion the whole or part of any
Pecuniary loss caused to the bank by the employee
Degradation to lower stage of pay in his grade or to a lower grade
Compulsory retirement from service and
Termination / dismissal from Bank services with / without benefits.
Resignation:
This is the most common way of separation. Employee leaves his job and
employment with his employer to pursue better opportunities; a better position at a better
compensation package in a branded company (or better known company) in a same city
and country or in a different city or different country.
So, an employee resigns for:
Better compensation and benefits
Higher position / level
Challenging role
To move from an unknown or lowly branded company to a highly branded and
reputed company
For foreign or international assignments
In MCB, there is some legality or may say some rules and regulations that must be
followed before resigning, such as:
The member of the staff must inform to his line manager in written form about his/
her intentions of leaving or resigning by giving the suitable contractual notice time.
The line manager should arrange the notice and the date of leaving job and verifies
annual leaves that are outstanding with the staff member. Any outstanding annual
leave remaining should be taken prior to say good bye to the organization whenever
possible.
Line manager takes and forwards resignation in written to Human Resource
Management along with verification of:
o Agreed date of leaving
o yearly leave situation
o notice of leaving the bank or transferring to another branch or branch
o Make sure that the staff member returns data on very last day.
Retirements:
Employees at all levels in MCB get retirement after either the completion of 30
years in service or reaching an age of 60 years. The bank operates the following staff
retirement benefit schemes for its employees:
a) For employees who did not opt for the new scheme, the bank operates the
following:
i. Approved contributory provident fund;
ii. An approved gratuity scheme
b) For new employees and for those who opted for the new scheme introduced
in 1975 for clerical staff and in 1977 for officers, the bank operates the
following:
i. An approved funded pension scheme for which monthly contributions are made
on the basis of actuarial recommendations.
ii. An approved non-contributory provident fund introduced in lieu of the
contributory provident fund.
c) For AVPs and above cadre and employees in officers’ cadre joining after
January 1, 2000, the bank operates an approved contributory provident fund.
The above benefits are payable to staff on completion of prescribed qualifying period of
service.
7- LABOUR MANAGEMENT RELATION
1. Focus on mutual trust in MCB
2. Control on human diversity in the work place
3. Healthy care of employees in MCB
4. Resolving dispute matters in MCB
5. Fair wages and incentive system in MCB
6. Quality, productivity and employment security in MCB
7- LABOUR MANAGEMENT RELATION
Labor-management relations are based on mutual trust between labor and
management. Harmonious working relationship between labor and management are critical
to an organization. Traditionally both parties have assumed a win-lose adversarial posture
towards each other.
Labor management relations emphasize general themes: to achieve long-term
success, labor and management must learn to accommodate one another’s needs, rather
than repudiate them. Then by the concept of mutual trust between labor and management,
certain goals can be achieved:
Improvements in the lives of employees are realized through the prosperity of the
company, and labor and management thus share the same goal of company prosperity
as a common value which increases the productivity.
Management will take into consideration to the greatest possible extent stable
employment and will continuously strive to improve working conditions; and
employees will cooperate with the company's policies in order to promote the
company's prosperity. In figure 10, labor management relations are shown.
In order to create a relationship of mutual trust and respect between labor and
management, personnel management is conducted in accordance with four basic
principles:
Creating a workplace environment where employees can work with their trust
in the company:
Stable employment conditions where layoffs and dismissals are not readily
made.
Readily maintain and improve working conditions from a medium to long-
term perspective.
Ensure fairness and consistency.
Creating a mechanism for promoting constant and voluntary initiatives in
continuous improvements:
Share the management mindset and sense of urgency through
communication.
Reflect business results in working.
Fully committed and thorough human resources development:
Promote personal growth through work.
Communication of the job way/role.
Promoting teamwork aimed at pursuit of individual roles and optimization of
the entire team:
Through consensus building and achievement in a single thrust.
Team work and create a sense of unity.
Figure 10: Labor Management Relations within Organization
Establishment of a relationship of mutual consent & Mutual trust between labor and management
Common Values
EMPLOYEES(Better and stableLife style, Personal growth)
COMPANY(Prosperity &Increased Productivity)
Stable employment, maintenance and improvement Of good working conditions and fair wages
Co-operation with company policies
Control on human diversity in the work place:
In MCB, when the supply of labor is abundant, relative to demand, employers control
the diversity in their workforce by using selective hiring practices and by imposing standard
operating procedures. Flexible policies and practices help employers solve the availability
issue created by the tight supply of diverse workforce and inevitably bring them face to face
with a second challenge, namely, ensuring that all employees and potential employees are
treated fairly and make them feel that they are treated equally.
Resolving dispute matters in MCB:
Employment relations problems should be resolved in the workplace through speedy,
fair and transparent procedures that entail the minimum of formality. The Dispute Resolution
Regulations (DRR) sought to codify that by prescribing a single set of statutory procedures
for handling matters of discipline, dismissals and grievances. In principle this had much to
commend it. Many employers, employees and representatives welcomed the new procedures
because they set out plainly what was expected of parties and offered the prospect of
increased consistency in the way matters were handled.
Employment security in MCB:
Assurance (or lack of it) an employee has about the continuity of gainful employment
for his or her work life. Job security usually arises from the terms of the contract of
employment, collective bargaining agreement, or labor legislation that prevents arbitrary
termination, layoffs, and lockouts.
Significance:An employee with a high level of job security will often perform and concentrate
better than an employee who is in constant fear of losing a job. Although this fear can
increase motivation in certain situations, a lack of job security can be a source of distraction
and result in excess stress and low morale that hinders an employee's overall performance.
8-CRITICAL ANALYSIS OF THE THEORATICAL
CONCEPT RELATING TO PRACTICAL
EXPERIENCES
Introduction :
In this section, there are models that analysis and explain the real situation about the
MCB. For gathering the real information about the opportunities and the threats that are
being faced by MCB, we consider models given below:
SWOT ANALYSIS:
STRENGTHS:
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.
One of the major strengths of MCB is that it has very stable deposit base.
MCB is largest private bank in Pakistan with around 1000 branches, which
cover almost every part of Pakistan.
The bank enjoys competitive advantage over other banks in Pakistan.
The bank enjoys competitive profitability in the industry.
MCB has captured majority of potential customers in Pakistan.
MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.
WEAKNESSES:
Low motivational level
Employees, dissatisfaction due to ill treatment and improper reward system.
Favoritism and Nepotism in recruitment.
High Employees Turnover.
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 don’t
have the ATM.
MCB RTC is useable only in Pakistan.
Some management positrons needed are not professional.
Although most of the branches are computerized now, still some important
branches don’t have computers.
Less efficiency of SYMBOL System due to disconnectivity.
OPPORTUNITIES:
Leasing sector is growing in Pakistan for the last two to three years which
provides 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.
Overseas Operations.
Launch the more effective and modern banking online system.
THREATS:
Other private commercial bank with sound profitability is also a threat to MCB
e.g. UBL, Al falah, HBL etc.
For the last of many years, Pakistan is facing economic and political instability
which is a big threat.
Afghan war and Iraq war has a deep effect on the economy of Pakistan, which
may affect MCB.
Foreign banks are flourishing in field of consumer financing.
People don’t prefer banking culture. They mostly prefer cash transactions.
PEST ANALYSIS AND ENVIRONMENTAL SCAN :
A broad view of market is important when management is interested in introducing
better services for customers. Rapid technological change, global competition and the
diversity of buyers preferences in many markets require the constant attention of the market
vouchers to identify promises business opportunities, see the shifting requirements of the
buyers, evaluate changes in competitors positioning and guide the choice of which buyers
to target and classify them according to respective segments.
Identification of external and macro factors that influence buyers and thus change
the size and composition of market overtime involves initially building customer profiles.
These influences include:
Political and legal environment
Economic trends
Socio cultural environment
Technological factors
Political And Legal Environment:
Banks are strongly affected by the political and legal considerations. This
environment is composed of regulatory agencies and government law that influence and
limit various organizations and individuals. Mostly these laws create new opportunities
for business.
Business legislation has following main purposes.
To protect banking companies from unfair competition.
To protect consumers from unfair business practices adopted by banking companies
To protect the interest of the society from unbridled business behavior.
Economic Trends :
A banking market requires better consumer market in volume along with higher
borrowing power. The available borrowing power depends on:
Consumer income
Saving rates
Consumption patrons
Rates of interest
Budget deficit
Exchange rates
Cost of living
Inflation
Socio-Cultural Environmen t :
A society is shaped by beliefs, norms and values. People in a society consciously
and unconsciously interact with:
Themselves
Others
Organization
Society
Technological Factors :
Forces of technological advancement have played the most dramatic role in shaping
the lives of people. The rate of change of technology has greatly affected the rate of
growth of economy. New technology is creating deep rooted affects which could be
observed in long run. The improvement techniques involved in on line banking. In brief
PEST analysis affects the overall banking companies and provides us the information
about the external macro condition.
9-POLICIES OF MUSLIM COMMERCIAL BANK
Internship Policy:
MCB is the bank that serves all type of customers and makes its policies
according to their needs and demands here the MCB has the policy to serve the students
that is six weeks internship.
MCB Has No Gender Bias :
For the selection of the employee MCB focus on merit rather than gender.
There is no any kind of discrimination on the basis of male or female, a person having
the skills and knowledge and is perfect of that particular job can be selected as the
employee.
Opening Account Policy :
Prior to establishing a relationship with new customer MCB obtains basic
information i.e. business, source of income, expected level of activity in the account
and reasons for opening the account.
Training Of Employees :
MCB has the program through which all the employees of the bank get proper
training and then work for the achieving the goals.
Revenue Recognition :
MCB recognized its revenue on accrual basis. For example if MCB invest in
some different securities and entitled for the profit yet not received, the profit is
recorded as when it earned not when it received.
Investments Policy :
MCB also invest its money other than the advances, while investing in the securities
MCB has the following policy to invest in
a) Held for trading
b) Held to maturity
In the light SBP regulations quoted securities are shown at market values and any
changes arising are taken to profit and loss account only upon actual realization.
RISK MANAGEMENT :
The bank is primarily subject to interest rate, credit and currency risks. The bank
has designated and implemented a frame work of controls to identify, monitor and
manage these risks are as follows:
Currency Risk Management :
To handle with currency risk, MCB enters into futures and swaps transactions in the
inter-bank market and with the State Bank of Pakistan in order to hedge its assets and
liabilities and cover its foreign exchange position.
Credit Risk Management :
In order to manage the credit risk MCB has a good policy the bank first scan the
information about the person who wants to obtain the loan and then assign the limit of
sanctioned amount that is decided on the critical analysis of the person’s income and
resources. MCB is government backed bank that’s why it provide the loan only against
the security.
o Interest rate Risk Management
o To hedge with the interest rate MCB also focus on to make the interest rate
swap and other documents.
MCB’s Competitive Strategies :
To be competitive the Bank has further reinforced its position in the
Consumer banking area by streamlining and re-launching the consumer financing
products and introducing more convenience based solutions. With the re-launch of auto
finance and house finance products, the Bank pushed the products with full thrust. The
Bank has also launched a running finance facility against mortgage of property.
Technology continued to play an important role in improving and expanding
product offerings. The Bank introduced more IT based products to cater to the changing
lifestyles and needs of the customers.
MCB Virtual-Internet Banking was launched with wide ranging banking
solutions for the customers ranging from individual to corporate customers and it has
become the most preferred Internet banking solution in the country.
MCB also had the privilege of being the first Bank in Pakistan to launch the
comprehensive bill payment facility through its alternate delivery channels which
include Internet Banking, ATMs and MCB Call Centre, currently with six payment
partners. Similarly, the Bank also took initiatives to increase the usage of debit facility.
To provide timely and updated information, MCB has also provided a new look to its
website which is user friendly and considerably easy to browse.
The Islamic Banking initiative has been very successful in attracting new
customer, both individuals and companies. Similarly, those relationships, which were
confined only to current account facility, have grown into stronger business
relationships. The branch network was expanded to Lahore and Multan during the last
year and recently been extended to Hyderabad and Faisalabad.
The Bank plans to further expand its Islamic Banking branch network to other
metropolitan areas and also to introduce new sharia compliant banking solutions to a
wider range of customers for satisfying their individual and business needs.
Some wide-ranging new strategic initiatives were also taken up which will be
important for the Bank in years to come. A private company has been formed in Hong
Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank,
handling trade transactions of select countries in the Asia-Pacific region. It is projected
to earn US$ 1 million in its first year of operations. To increase its international
presence, the Bank will be opening its representative office in Dubai and entering into
major strategic alliances with banks in the UAE/ especially for marketing our consumer
banking products to non-resident Pakistanis.
Furthermore, feasibility is also being carried out for entering other international
markets. MCB's operations continued to be streamlined with focus on rationalization of
expenses, re-alignment of back-end 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.
Management of Human Resources has been one of our core focus areas. MCB
is committed towards attracting, retaining and motivating outstanding people.
Challenge for MCB is to provide an environment in which employees can better realize
their potential. The Bank introduced 'reward for performance' where high potential
officers were identified and rewarded accordingly. In view of the competitive
environment, the Bank is focusing on performance and introducing a more robust
performance management system.
MCB is also strongly committed to training its staff at all levels. The Bank will
also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB
Bank will run SYMBOLS E-Finance modules to deliver personalized services to its
customers over multiple delivery channels, while SYMBOLS Enterprise Operations
Center will serve as its core banking transaction-processing engine. By implementing
SYMBOLS, MCB Bank aims to raise the level of its customer service and it’s time to
market in new product offerings for its three core banking businesses in Corporate,
Commercial and Consumer Banking – retaining its market leadership as Pakistan's
progressive Bank.
SUMMARY:
In this section, the policies of MCB are discussed. MCB has the policy to serve
the students that is six weeks internship. MCB focus on merit rather than gender. To be
competitive the Bank has further reinforced its position in the
Consumer banking area by streamlining and re-launching the consumer
financing products and introducing more convenience based solutions.
10- CONCLUSIONS
1. Analysis Evaluation Of MCB
2. Check Feedback Of MCB
3. Proper Observation Of MCB
4. Findings Of MCB
10- CONCLUSIONS
In MCB, Model Town Branch, with Cooperation of all branch members, I have
been able to learn and experience many new things related to the banking sector and the
banks workings. I am able to handle the public with respect to many different workings
on many different instances and also in account opening for customers and can handle
many other tasks as well.
Finally I concluded that MCB is a good organization for a person for his long
term career workings. Overall working and environment of the bank is very
comfortable and the staff is very helpful and respectful of each other and it still
maintains a professional environment. Management of the bank is very strong. I found
MCB a very well organized and managed organization. Its progress in a very short time
is a proof of its good policies and commitments by both, the management and the
employees towards achieving the goals and act upon the mission of MCB.
Employees of MCB Model Town branch work more than their working hours
and all the workings take place in a very friendly atmosphere that does not induce
pressure on the person working there. Unlike most of the other organizations, MCB do
not try to squeeze their people into a corporate mould, instead they identify individual’s
talent and then give them plenty of room to grow. It also shows their loyalty and
commitment to the organization. This branch of MCB relatively small and has climbed
its way up very quickly and all that only because of the employee’s efforts and
consideration for each other
Understanding and the effective management of the human resources is the
most difficult challenge faced not only by the bank but by all the organizations. Even
though the people have been sacrificed in the new organizational developments, it is
becoming clear that the true lasting competitive advantage comes through human
resources and how they are managed.
Along with all these positive points, like all other organizations MCB also needs
to improve in some aspects. MCB seems to not focusing on this highly critical issue as
the job satisfaction level of the employees working at MCB, was quite low. There are
quiet tight and hard policies in case of promotion. It takes too much time for
promotions even if the promotion is due; it still requires a recommendation from
management. Pay structure is also very poor. Employees are low-paid. And all these
factors create dissatisfaction and demotivate employees.
Now a days, despite all these little problems, as a whole MCB is a unique blend:
diverse, challenging and moving at a growing pace, yet also personal and friendly.
They value their best performers highly and offer three things that must be top of the
list when you consider your next, all important career move:
Stimulating work that will enhance any resume
Development opportunities to enrich your professional growth
Rewards that match with performance.
11- SELF EXPERIENCE
Tasks in HR Department:
I match the entries in master file with the given voucher.
I entered the expenses in their relevant accounts.
I arranged the vouchers by date.
I prepared debit and credit vouchers.
I prepared office notes.
I stamped different bills on the instructions of HR Manager.
I was told about how salary is estimated every month.
I was told about the whole procedure of staff loan issued to staff members.
Workload :
The work load of the bank staff is based upon on the daily system. The office
timing starts from 9.00 am to 5.00 pm (Monday to Friday) and 9.00 am to 1.00 pm on
Saturday for the customers. After the bank timing the staff fulfill the daily vouchers
transaction and made the entries on the net system and then counted the cash, put it in
the safe. The banking staff should finished their word on daily basis whether there work
is short or long.
Responsibilities :
Responsibilities of staff depend upon the scale of the staff members. Higher the
rank of the staff higher will be the responsibility on it. For example the Branch
Manager responsibility is higher than the Operational Manager.
Branch Manager has the responsibility to deal with the Branch customer and
with the outsider parties also while all the remaining staff is responsible to deal with the
Branch customers only. Branch Manager is responsible for the internal and external
environment and the remaining staff is responsible for internal environment only.
Operational Manager has the responsibility to check the activities of his
subordinates. Cashier is responsible for all the cash transactions which occur in the
Bank. Customer Relation officer is responsible to deal the customers well and provide
them the necessary information if required.
Physical Facilitie s:
The branch where I have done my internship is MCB branch, here the physical
facilities available to the customers are sufficient, proper sitting arrangement is
available, and gas heater in winter and air conditioners for summer is also available.
But the facilities for the employees is not sufficient, employees have the combined
table there is no separate rooms for the employees.
Critical Analysis Of The Branch :
Although the bank is performing their function very well but mostly the staff of
the bank is young. They have very less experience and low banking knowledge.
The banking staff always worries about for increasing the deposit of the bank
rather than improving the customer’s services.
The Branch is not located in the business or industry area that why the
customer’s output is very low in the Branch.
Every morning the Branch Manager gives the Branch report to the Regional
Manager on the telephone meeting which has no logic because Branch Manager always
worries for the deposit.
Performances :
In Term Of Customer’s Satisfaction:
The customers are very satisfied with the performance of the bank. The bank is
provided latest banking services to the customers so that they can easily access to their
accounts. The bank is also providing the internet facility to their customers through this
they can access to their accounts on the net and they can check their balance without
going to Bank. The Bank also provides the door to door services to those customers
who transactions are daily occurs that why those customers are very satisfied with the
Bank and this thing also helps to the Banks for increasing their accounts holders.
In Term Of Accounts And Budgets:
The performance of the Banks is increasing day by day. The accounts holders are very
satisfied with the facilities which they provide..
Summary:
It basically includes organizational attitude towards its employees and employee’s
satisfaction and attachment. MCB performs several functions and have many departments
in order to retain and maintain their customers some of these departments are the
collections department, Advance department, Bill department, clearing department etc.
To motivate the employees MCB provide many allowances and facilities to its employees
such as medical facility, huge amount of bonuses and also motivate the employees through
promotions. The branch in which I have done my internship is providing the very
satisfactory services to its customers and large numbers of customers are satisfied with the
attitude and the services provided the branch.
12- RECOMMENDATIONS AND SUGGESTION
From the quantum of the profit and its financial data it can easily judged the
after privatization Muslim Commercial Bank is performing well. Its deposits are
growing day-by-day and so its profitability. The controlling body is responsible for the
productive performance of the bank. Followings are my observations and suggestion to
improve the efficiency for the development of the bank.
Increase In Profits:
People can be motivated to save money by offering the deposit through various
investment schemes. The rate of profit should increase 1% or 2 % it would be profitable
step for bank.
Increase Salaries:
MCB is making good profits but giving less pay to their employees as compared
to their competitors. So their salaries should be increased. Because less salaries make
the employees demotivate and they lose their interest in their jobs.
Change The Nature Of Work :
Most of the bank employees are sticking to one seat only with the result that
they become master of one particular job and lose their grip on other banking operation.
In my opinion all the employees should have regular job experience all out-look
towards banking. Their promotion policy should be adjusted accordingly.
Training :
Every year some of the employees should be sent for training to other countries
and employees from other branches should be brought here. Some more reading
material should be provided the purpose should be to educate the employees with the
advance studies in their field. The employee should be provided the opportunities to
attend and participate in seminars and lectures on banking.
Refresher Courses:
Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according to their
requirement. Foreign experts can also be called for this purpose.
Special Training In Abroad:
Every year some of the employees should be sent for training to other countries
and employees from other branches should be brought here. Some more reading
material should be provided the purpose should be to educate the employees with the
advance studies in their field. The employees should be provided the opportunities to
attend and participate in seminars and lectures on banking.
Incentive To Employees :
Bank should give some more incentive to its employees in order to remove the
conflict between lower and higher officers and should try to improve the working
condition of the bank. Such system should be designed that every employee who has
some problems with his officers can communicate to the higher management and some
steps must be taken to improve that.
Performance And Reward ;
Smart, educated, skilled, well spoken and well versed staff personals should be
rewarded and appreciated, while on the other hand lazy, lethargic, heard, rough-dealers
and ill mannered must be warned and penalized but this all should be on merit and
considering the policy of honesty is the best policy and not due to some personal liking,
disliking prejudice and patrimonial. It is therefore suggested certain schemes and
checks may be introduced in banks to increase efficiency through reward and
punishment system.
Over Employed :
During my internship period I felt that at some place the Muslim Commercial
Bank Limited is over employed which is causing in expenditure. I think that the best
way out for this problem is to pen new branches.
Promotion And Advertising :
Bank must let potential customers know that all attractions for banking exist.
This is done by advertising on television and obtaining press coverage, in conjunction
with direct mail, window displays, leaflet in branches and in appropriate other locations
(such as hotels, shops, etc.) and including leaflets in statement of accounts sent to
existing customers in the hope that they will tell potential customers about the services
provided by our bank.
Better Reward System:
Better reward system is one of the most important requirements in order to
reduce the problem of Employee retention and improve Employee motivation.
Reward and Punishment:
It is human nature one goes behind reward and incentives while and try to avoid
from punishment. Likewise in commercial institution like bank this system be
introduced with full force means active smart, educated skilled, self spoken and well
versed staff personal, should be reward and appreciates, while on the other hand lazy,
lethargic, heared, rough dealers and ill mannered must be warned penalized and
punished.
But this all should be on merit and considering the policy of honesty is the best
policy and mot due to some personal liking, disliking prejudice and patrimonial. It is
therefore suggest certain schemes and checks may be introduced in banks to increase
efficiency through reward and punishment system.
More Focus on Salary Accounts:
Logic leads to promotional campaign through employers who are customers of
the banks and their employees are paid in cash. Such business accounts should be
encouraged to open the accounts of their employees with the banks. It might be worth
offering free banking for a specific period to new accounts or simply publicizing the
services available by means of posters at the employer’s premises.
Internship Facilities ;
The period of internship should be divided into the number of department of the
MCB. The internee should be given timetable mentioning the number of days he has to
work at different places in the bank. On the 1st 4 day in each department internee
should be given a lecture by the officer of the department concerned about working of
the department.
A lot of productive time is wasted by the staff in unproductive pursuits and tea
and lunch breaks are got voluntarily extended and the time spent in corridors,
courtyards, depends on the staff will. This tendency of late must be eliminated which
reflect adversely on the image of the institution and has posed a serious problem.
Distribution of work is not on equity basis, work has not been allocated properly
some workers have to work hard and have to work in late hours without any extra
reward. So I suggest that steps should be taken to allocate the work properly.
Survival Of The Fittest:
It is not nearly a sentence or idiom right man for the right job according to his
qualification to his qualification, profession skills and experience with the job
specification must be considered while posting and placing the employees.
It should not be like that a person who may be a very good worker but
possessing lack of managerial capabilities should be posted as manager. But as second
place in command or some heavy working department wished persons together with
managerial qualities and manners in the same fashion should be posted and placed as
manager.
13- REFERENCES
Introduction: http://mcb.com.pk/mcb/about_mcb.asp
Vision / Mission: http://mcb.com.pk/mcb/mission_vision.asp
Corporate information: http://mcb.com.pk/mcb/corporate_information.asp
http://www.oppapers.com/essays/Pakistans-Banking-Sector-Industry
Analysis/181995
http://en.wikipedia.org/wiki/Economy_of_Pakistan
http://www.sbp.org.pk/reports/annual/arfy09/annex_index.htm
http://en.wikipedia.org/wiki/Muslim_Commercial_Bank
http://www.blurtit.com/q501915.html
MCB Brochures Manuals
Annual Report
14- ABBREVATIONS
MCB Muslim Commercial Bank
15- APPENDICIES
Annexure-A: Sample of Recruitment through Direct Interview
Annexure-B: Online Job Application Form of MCB
Annexure-C: Sample of performance appraisal form
Annexure-D: Branch Network of MCB
Annexure-E: Summary of PEST Analysis Of MCB
Annexure-A
Findings through our Direct Interview from HR managers:
The potential candidates in MCB are generated through following external resources:
o Direct applicants
o Job portals
o Employee Referral
o University campuses
S. No. Source Candidates with experience of
0-1 yr 1-3 yrs 3-5 yrs 5-10 yrs
10 yrs &
above
1 Campus
2 Employee Referrals
3 Consultants Depends on nature of job
4 Walk-ins Depends on nature of job
6 Advertisements Depends on nature of job
7 Job Fairs Depends on nature of job
Employees are mainly recruited through:
The time HR Managers take from JRF ( Job Requisition Form) till the final offer
is:
o For Junior level recruitment:
15-20 days
o For Middle Level Recruitment
30-45 days
o For Higher Level Recruitment
60-75 days
The sources HR managers prefer most for hiring:
o Junior Level employees:
External Sources
o Middle Level employees:
Both internal and external sources
o Higher Level employees:
Internal Sources
When a middle level employee is transferred from one department to another, he/she has to go
through a probation period of 6 months. During this period, the employee is trained in that
department by the supervisor and the employee is also properly scrutinized this whether
employee is capable of working in that department or not.
Annexure-B
Candidates can also apply at MCB via online job application form
The online job application form is given below:
Application submitted for * Please Select
Here you have to specify whether you are applying for any suitable job or for internship program.
Personal Information
Fields marked with an*are mandatory
Title: *
First Name: *
Middle Name:
Last Name: *
Gender: * Please Select
Country of Residence: * Please Select
Address: *
City: *
Contact No *- -
country code
area code
phone no.
Cell No:
National Identity Card No.
Passport No. *
(Without space)
Email Address:*
* -- -- --
Date of Birth:
Country of Birth: * Please Select
Education
Degree / Diploma / Certificate: * Please Select
School / Institute / University: *
City / State: *
Country: * Please Select
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Please note that mere submission of instant application or any subsequent correspondence from MCB should not be considered as guarantee for employment or even for an interview call in this regard.
Preview
After the proper filling out of this job application form, HR managers check whether the candidate fulfills the minimum selection requirements or not and then contacts the person for further proceedings.
Annexure- C
MUSLIM COMMERCIAL BANK
PERFORMANCE APPRAISAL FORM Instructional staff of MCB
The purpose of the performance appraisal program is to provide guidance about what is essential, what is expected and growth opportunities.
Part – I ( For office use )
Position Title
Date of Evaluation
Date of Last Evaluation
DepartmentEvaluator
Reason for Evaluation
Annual Promotion Other
I. Key Responsibilities: List major responsibilities, primary duties or important
functions of this employee.
II. Accomplishments: Review each key responsibility area and note any
accomplishments the employee has made.
III. Key Performance Factors : Review the employee’s performance in each
area listed below and note where the employee
are excels and where improvement is necessary.
Comments: Describe how the employee’s performance compares to stated
expectations and objectives communicated at last appraisal and throughout the rating
period. Identify employee strengths in the areas of specific knowledge, skills, and
abilities to do the job. Identify areas where you see improvement is necessary.
Rating scale
Excellent (81%- 100%) Unique and exceptional accomplishments
Good (61% - 80%) Consistently meets the requirements of the position in all aspects
Fair (50% - 60%) Performance is inconsistent; meets some job requirements but not consistently.
Poor (40% - 50%) Only occasionally acceptable
Bad (Below 40%) Does not meet even minimum requirements of the position
Part – II ( If any point is not applicable, please do not mark but simply write “N/A” )
Job Knowledge:
Consider degree of job knowledge relative to length of time in the current position. Consider the individual’s efforts to learn new skills and maintain up-to-date job related information. Applies technical and procedural know-how to get the job done; understands job duties and responsibilities; has necessary job skills and knowledge; understands and promotes department mission and values; keeps informed of the latest developments in the area of specialty; monitors events which impact functional areas.
Rating: Excellent Good Fair Poor Bad
Comments:
Communication:Effectively conveys and receives ideas, information and directions; seeks to clarify and confirm the accuracy of their understanding of unfamiliar or vague terms and instructions; listens effectively; demonstrates good verbal and written communication.
Rating: Excellent Good Fair Poor Bad
Comments:
Teamwork/Collaboration:Successfully works with others to achieve desired results; contributes to team projects; exchanges ideas, opinions; helps prevent, resolve conflicts; develops positive working relationships; is flexible, open-minded; promotes mutual respect.
Rating: Excellent Good Fair Poor Bad
Comments:
Productivity:
Maintains fair work load; takes on additional responsibilities as needed; manages priorities; develops and follows work procedures; completes assignments on time and to specifications.
Rating: Excellent Good Fair Poor Bad
Comments:
Planning and Organizing:Develops realistic plans; balances short and long-term goals; uses time and resources effectively; prioritizes duties in a manner consistent with organizational objectives and emergencies; meets deadlines and follows through; requests assistance when necessary to complete duties.
Rating: Excellent Good Fair Poor Bad
Comments:
Problem Solving:Anticipates and prevents problems; defines problems, identifies solutions; overcomes obstacles; helps team solve problems.
Rating: Excellent Good Fair Poor Bad
Comments:
Initiative:
Pursues goals with commitment and takes initiative eagerly; results-oriented; desires to excel on the job; works steadily and actively; demonstrates self-confidence and positive attitude.
Rating: Excellent Good Fair Poor Bad
Comments:
Customer Orientation:Listens, identifies, and responds quickly and effectively to internal and external customers’ needs and sets work activities accordingly; goes beyond what is expected and follows up to ensure customer satisfaction.
Rating: Excellent Good Fair Poor Bad
Comments:
Quality:
Demonstrates accuracy, thoroughness, and reliability; manages time and priorities; develops and follows work procedures.
Rating: Excellent Good Fair Poor Bad
Comments:
Diversity:
Treats everyone equitably and fairly; embraces diversity in daily work life; works with diverse group of employees comfortably and willingly.
Rating: Excellent Good Fair Poor Bad
Comments:
Attendance:
Consistently is on time and ready to work at the start of shift and after breaks; requires no start- up time; always provides proper notification or advance notice for absence or tardiness.
Rating: Excellent Good Fair Poor Bad
Comments:
Contributions to Campus/Community:
Participation on campus committees, task forces or in campus service events; participation in community based service activities
Rating: Excellent Good Fair Poor Bad
Comments:
PART – III
OBJECTIVES FOR UPCOMING REVIEW
I. Performance Plan: Identify specific actions/behaviors the employee needs to either start, stop and/or continue to do in the upcoming performance period.
II. Development Plans: Identify specific work assignments and topics for training designed to increase individual’s effectiveness on present job and prepare for future job assignments.
III. Employee Comments: Enter below any comments you wish to make about your appraisal or the objectives for the upcoming year.
Your signature below does not necessarily signify your agreement with the appraisal; it simply means that the appraisal has been discussed with you.
Signature Date
Evaluator Signature Date
Annexure-D
Annexure-E
