NBP HR Report-Final

8/4/2019 NBP HR Report-Final

http://slidepdf.com/reader/full/nbp-hr-report-final 1/58

1. OBJECTIVES OF STUDYING THE ORGANIZATION

Internship program provides a chance to practically inspect the working of an

organization in relation to theoretical study. For internship purpose, I select to

study the National Bank of Pakistan, Regional Office Multan. My

specialization is in HRM therefore worked mostly in HRM department so that I

could learn the practical knowledge of HRM functions. In this sense I want to

learn these things:-

a) Gain practical knowledge of HR department

b) Study how much policies are applying in the organization

c) Improve my skills

d) Learn the methods how can we apply the theory of HRM in the

organization

e) Learn those factors which are the cause of changing strategies

f) Observe the results when we do not apply the theory of HRM

g) I want to learn the effect of good coordination between workers

h) I want to learn the result of good planning

i) I want to also learn how we prepare the performance report.

j) I want to learn the method of training and I want to see the

results of good training. I want to learn those strategies which make the

work easy and which are helpful for achieving the goals of

organization.

Main objectives of my study were to see the following areas:-

1. Working Environment of NBP

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2. HR Department of NBP, Regional Office, Multan.

3. Functions of HR Department i.e.

MAJOR FUNCTIONS

Following are the functions of HR Management and Administration

department, National Bank of Pakistan, Regional office Multan.

1. Human Resource Planning

Human Resource Planning is conducted by the HR department. They assess

the existing number and nature of staff and then place / post them at needy

branches according to the requirement of that branch. For example, if the load

on cash counter is increasing, one new cashier will be posted at the Branch.

2. Recruitment of Staff

Another important function of HR department is recruitment of staff as per

availability of vacancies.

At NBP, recruitment of permanent staff is centralized and all recruitments are

made by their Head Officer Karachi. However, in near past limited authority

has been given to regional offices to hire the services of outsourced staff i.e

staff provided by the employment companies. This type of recruitment is being

made in following areas: -

a. Security Guards

b. Janitorial Services

c. Sale & Marketing staff for retail products.

3. Transfer of Employees

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The regional office Multan controls fifty five (55) branches. All transfer and

posting of employees among these branches is made by HR department

keeping in view the staff requirement at different branches.

4. Job Rotation

Function of Job rotation is also performed by regional office Multan. Normally,

when an employee completes three years at a particular seat, he rotates to

another seat. This rotation is very important for internal control, to prevent

fraud and forgery and to enhance the employee’s skills for different duties.

5. Human Resource Development & Training

H.R Department analyzes the day to day requirement of SBP regulation for

different Banking activities, and plans for training and development of staff.

This training may also be based upon introduction of new Banking produces

and competition with rival Banks.

6. Performance Appraisal

H.R Department also performs the function of performance appraisal of

employees on yearly basis.

At the close of every year annual confidential report (ACR) of each and every

employee is written by HR department. This ACR contains subjective and

objective evaluation as well as personal traits of an employee.

7. Promotion of employees

NBP H R department performs the function of promotion. Normally NBP

promotes its employees after every three yours on the basis of their past

performance, availability of vacancies in each grade/cadre and quota

approved by the Ministry of Finance, for each grade/cadre.

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8. Lay Off

Lay off function is also performed by HR department. NBP is a govt. owned

organization and its employees retire at the attainment of age of 60 years.

However, in 1998 and 2002 the NBP announced the Golden Hand Shake

schemes and almost 5000 and 3500 employees separated from Bank

services in these respective years.

9. Health & Safety

H R department arranges for medical facilities to its employees. There are

several hospitals on Banks panel and employees can avail medical facilities

from these hospitals. Hospitals bills are being paid by HR department after

proper verification.

NBP extend medical facility to employees, their spouse (wife and children) as

well as parents of the employee. Brother or sister or any other relation is not

entitled for this medical facility.

10. Disciplinary Cases

HR department deals with all disciplinary cases of employees. These

disciplinary cases include: -

a. Fraud & Forgery

b. Unauthorized leaves

c. Insubordination

d. Misconduct of finances

e. Violation of procedure & policy

11. Retirement Benefits

HR department also manages pensions and group life insurance. Pension is

allowed to all employees after retirement and when the employee dies his

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widow can avail this facility till death. Even if the widow dies, the daughter/son

of employee can avail pension till she/he attain the age of majority i.e. 18

years or she/he married, whichever is happened earlier.

12. Personnel Information System

HR department is responsible to keep and maintain complete data of each

and every employees this data includes his personal data as well as

professional data and being used to place right person for the right job.

13. Equal Employment Chance

NBP provides equal employment chance to men & women. HR department is

responsible to implement this policy, too.

14. Salary & Loan Administration

HR department performs the function of disbursement of Salary and

administration of Staff Loans. Salary is being disbursed in last week of the

month. NBP allows house building loan, Motor car loan and computer loan to

its employees. Period of house building loan is 20 years, Car loan is 10 years

and computer loan is 5 years. Mark up on HBL is 3% and car/computer loan is

4%.

HR department pays salaries to employees after deduction of monthly

installments of loans, already availed by them.

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2. INTORODUCTION TO THE ORGANIZATION

National Bank of Pakistan maintains its position as Pakistan’s premier Bank

determined to set higher standards of achievements. It is major business

partner of the Government of Pakistan with special emphasis on fostering

Pakistan’s economics growth through aggressive and balanced lending

policies, technologically oriented products and services offered through its

large network of branches locally, internationally and representative offices.

Mission

To be recognized in the market place by

Institutionalizing a merit & performance

culture, Creating a powerful & distinctive

brand identity, Achieving top-tier financial

performance, and Adopting & living out

our core values.

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Core Values

We aim to be an organization that is founded on…

• Growth through creation of sustainable

relationships with our customers.

• Prudence to guide our business conduct.• A national presence with a history of

contribution to our communities.

We shall work to…

• Meet expectations through Market-based

solutions and products.

• Reward entrepreneurial efforts.

• Create value for all stakeholders.

We aim to be people who…

• Care about relationships.

• Lead through the strength of our commitment and willingness to excel.

• Practice integrity, honesty and hard work. We believe that these are

measures of true success.

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Vision

To be the pre-eminent financial

institution in Pakistan and achieve

market recognition both in the quality

and delivery of service as well as the

range of product offering

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3. OVERVIEW OF THE ORGANIZATION

National Bank of Pakistan was established on November 9, 1949 under the

National Bank of Pakistan Ordinance XIX, 1949, in order to cope with the

crisis conditions which were developed after trade deadlock with India and

devaluation of Indian Rupee in 1949. The normal procedure of establishing a

Banking company under the Companies Law was set aside and the Bank was

established through the promulgation of an Ordinance due to the crisis

situation that had developed with regard to financing of jut trade. Bank

commenced its operations from November 20, 1949 at six important jute

center in the then East Pakistan and invested its resources in financing of jute

crop. The Bank’s Karachi and Lahore offices were subsequently opened in

December 1949. Initially the Bank was established with the objective to

extend credit to the agriculture sector, however, during 1950s, the Bank’s

Ordinance was amended so that it could under take other commercial

businesses / activities as well.

The nature of responsibilities of Bank is different and unique from other Banks

/ financial institutions. The Bank acts as the agent to the State Bank of

Pakistan for handling Provincial / Federal Government Receipts and

Payments on their behalf.

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PRODUCT LINES

There are three types of product lines, which are as under:-

BUSINESS VOLUME (31.12.07)Authorized Capital 10,000

Paid-up Capital 8,154

Shareholders' Equity and Reserves 69.270

Deposits 591,900

Advances 340,700

Investments 210,800

Total Assets 762,200

Pre-TaxProfit

28,060

After-TaxProfit

19,030

No. of Branches

1,261

No. of Employees

14,079

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a) Retail Products

b) Advances

c) Deposits

(a) RETAIL PRODUCTS

PRODUCT LINESRETAIL PRODUCTS

Unprecedented Safety - Unprecedented

ReturnPremium Aamdani

Unprecedented Safety - Unprecedented

ReturnPremium Saver

President's Rozgar Scheme - Easy

financing for self employmentKarobar

Affordable, Flexible & Convenient home

financing for allSaibaan

Take upto 20 Advance Salaries - Affordable

Installations from 1 - 60 monthsAdvance Salary

One Card does it all - ATM plus Debit Card

in oneCash Card

11

http://nbp.com.pk/Aamdani/index.htm

http://nbp.com.pk/Premium/index.htm

http://nbp.com.pk/Karobar/index.htm

http://nbp.com.pk/Saibaan/index.htm

http://nbp.com.pk/advancesalary/index.htm

http://nbp.com.pk/cashcard/index.htm





http://nbp.com.pk/Aamdani/index.htm

http://nbp.com.pk/Premium/index.htm







Invest with Confidence - Marginal Finance

Facility

Investor Advantage

Meet your need for ready cash against your

idle gold jewelry with no minimum limits

Cash n Gold

NBP KISAN TaqatKisan Taqat

NBP's affordable agricultural program offers

you a wide range of financingKisan Dost

Knitting Links – AASAN Banking

Online Facility

12

http://nbp.com.pk/Margin/Index.htm

http://nbp.com.pk/KissanTaqat/Index.htm

http://nbp.com.pk/KisanDost/Index.htm

http://nbp.com.pk/Online/index.htm



http://nbp.com.pk/CashnGold/index.htm







(b) ADVANCES

Small finance/working capital for small enterprises.

Cash Finance/working capital for medium enterprises

Demand finance/Term Finance

Running Finance for personal use against DSCs/SSCs

Syndicate Finance/Consortium Financing

(c) DEPOSITS

Profit & Loss Saving Account

Profit and Loss Term Deposits Account

NBP Plus Term Deposits Account

NBP Premium Saver Account

NBP Premium Amadni Certificate

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ORGANIZATIONAL STRUCTURE

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President

Commercial

& Retail

Banking

Group Chief

Regional

Business

Chief

Corporate &

Investment

Banking

Group Chief

Corporate Head

North &

Corporate Head

South

Corporate

Branches

Operations

Group

Chief

Risk

Management

Group Chief

Regional

Marketing

Manages

Regional

Operations

Chief

Branch

Manager

Regional

Compliance

Chief

Operations

Departments

of The Region

Branch

Operations

Manager

Regional Risk

Management

Chief

Credit

Department of

The Region

Branch

Credit

Officers



4. Organizational structure of the Human Resource

Management (HRM) departmentNBP REGIONAL OFFICE MULTAN

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SEVP / Group Chief,HRM & AG, NBP

Head Office Karachi

SVP / Regional HR Chief,

Regional Office,

PSO to Regional

HR Chief

No.2 in HRM

Department

Incharge

Disciplin

ary

Cases

Incharge

Staff

Benefit

Incharge

Staff

Loan

Incharge

Accounts

of R.O.

Incharge

Litigation

& Ind.

Relations

Incharge

Inward /

Outward

Mail



5. HRM PROCESS IN THE ORGANIZATION

5.1 HUMAN RESOURCE PLANNING AND FORECASTING

The processes by which management ensures that it has the right personnel,

who are capable of completing those tasks that help the organization, reach

its objectives. Another par of the current assessment is the job analysis.

Human resource planning can be condensed into three steps.

1. Assessing current human resources.

2. Assessing future human resource needs.

3. Developing a program to meet future.

HRP PROCESS

Major steps in the Human resource planning process are to ascertain:-

1. Goals and plans of organization

2. Current human resources situation

3. Human resource forecast

4. Implementation programs

5. Audit and adjustment

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At National bank of Pakistan this process of planning is done at Head Office

Karachi and Regional Offices implement all these strategies which are

determined during the planning at Head Office.

FORECASTING HR REQUIREMENTS

Forecasting of HR requirements, at NBP is made on the following

parameters:-

Staffing Level

Number of employees needed to meet the strategic plans of the bank.

Staffing Mix

There are following categories of working staff in NBP as mentioned below:-

o Executives

o Officers

o Clerical staff

o Non-clerical staff

Organization and Job Design

Proposed projects for launching as per the future requirements.

Available / projected sources

As per following method e.g:-

Projected employees 125

Available employees 100 _____

Net requirements __25_

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3. Action Plans

Staffing authorizations

The Regional office is authorize to hire employees by outsourced

companies e.g Security guards, Janitorial services, Sales & Marketing

staff.

Recruitment

All the new recruitments on permanent basis is made according to the laid

down procedure and policies at Head Office Level. So, all the major

decisions are taken by the Senior Executive management of the bank

regarding recruitment of permanent staff.

However, recommendations / suggestions are taken by the Head Office

from Regional Offices time to time.

Promotion & Transfer

Normally after every 03 years Promotion / Move-over is given to the

employees on the basis of their ACRs (Annual Confidential Reports),

performance reports, recommendations, seniority and so on.

Organizational changes

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As per the requirement of the bank, organizational changes are also taken

whenever bank management feels the changes necessary for the bank.

Training & Development

Training & Development is necessary to equip the employees with new

technologies. It’s also helpful for career growth and development. Employees

learn and develop new skills, or areas of development in new Techniques and

latest information, so that, after the necessary training on specific fields, better

& accurate functions and operations may be executed in the bank.

Recruitment Planning

Recruitment begins with a clear specification of

1. the number of people needed through H R Forecast

2. when they are needed

Compensation & Benefits

Compensation and benefits are given to employees.

Labour Relations

The information for job analysis is better for both management and unions

for resolving disputes.

METHODS TO FORECAST HR NEEDS

At NBP, HR forecasting is being done according to the following model:-

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Forecasting Model

Current

Strength

Losses /

Withdrawal

Back-up In Future

Requirements

Surplus /

Shortage

Plans of NBP may include the following course of actions:-

- Inauguration of new branches.

- No. of pensioners.

- No. of utility bills

- No. of A/c holders

- New products to go launching in future

5.2 EMPLOYEE RECRUITMENT AND SELECTION

Sources of candidates

a) Internal sources

b) External sources

Employee Recruitment & Selection Process

The start of the recruitment process gives the business time to reassess the

nature of people’s jobs and consider future requirements.

The recruitment and selection process will be:

1. Vacancy arises

2. Job analysis

3. Job description

4. Job specification

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5. Job advertised in appropriate media

6. Application forms and short listing

7. Interviews and selection

8. Vacancy filled Steps

Job Analysis

Job analysis is the foundation for forecasting the need for human resources.

Supply Analysis

Supply Analysis focuses on identifying organizational competencies,

analyzing staff demographics, and identifying employment trends.

Demand Analysis

Demand Analysis deals with measures of future activities and workloads, and

describing the competency set needed by the workforce of the future.

Gap Analysis

Gap analysis is the process of comparing information from the supply analysis

and demand analysis to identify the differences, the gaps, between the

current organizational competencies and the competency set needed in the

future workforce.

Action Plan

Action Plan is the process of developing strategies for closing gaps in

competencies and reducing surplus competencies.

H R Planning

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HRP is becoming more important in bank as a result of globalization,

new technologies, organizational restructuring and workforce diversity.

“The right number of people with the right skills, experiences, and

competencies in the right jobs at the right time”.

Recruitment

Recruitment starts with the objectives of bank and the specification of

HR requirements.

Initial Screening

Initial screening is the basic step of employee recruitment. Here

the separation down of the qualified and un-qualified candidates.

Selection

Selection of New employees by the bank through written tests, &

interview process.

Orientation

Orientation is particularly important for familiarization visual,

presentation, briefing about the NBP policy, procedures and

benefits.

Placement

After completion of recruitment process, the employees are posted

at needy positions / branches.

Training

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According to job descriptions and specifications training

programmes are arranged in NBP.

Performance Appraisal

Annual Performance Appraisal is made after 31st Dec of every year. It’s

not kept a confidential. All points discussed with the Appraisee by the

Appraiseer. Following are the Parts & Sections contained in National

Bank of Pakistan in Annual Performance Appraisal.

Section-I (To be filled by the concerned Branch / Region)

Name

Father’s Name

Designation

Grade

Basic Pay

Regular / Contractual

Current Posting

Reporting to

Date of Joining NBP

Date of Last Promotion

Academic Qualification

Professional Qualifications

Status of Disciplinary actions, if any

Section-II (To be filled by the Appraisee)

Mention most important achievements during the year

Section-III (To be filled by the Appraisee)

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What Training would you like to undertake to benefit you

Part-B

Section-I

Performance, Achievement against job objectives (Already agreed)

Rate the performance against objectives:

(1=poor, 2=Satisfactory3=Good4=Very Good 5=Excellent)

Five Objectives Score (1 to 5)

1. Deposit

2. Advances

3. Profit

4. Reduction of Bad debts

5. Reduction of Complaints

Total score / No. of objectives x 0.7 (Score of Section-I)

Section-II

Behavioral Skills

1. Job Knowledge

2. Communication Skills

3. Attitude, Behaviour & Response to Controlling Offices

4. Initiative

5. Attendance & Punctuality

6. Commitment to Job & Organization

7. Team Work

8. Analytical Ability

9. Development of subordinates

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10. Personal appearance and grooming

Total score / No. of objectives x 0.3 (Score of Section-II)

Grand Total:_________________

Section-III

- Signature of Appraisee & Date

(with comments, if any)

- Signature of Appraiser & Date

(with comments, if any)

(Immediate Supervisor)- Countersigned by the Appraiser’s Supervisor & Date

Sources of candidates

a) Internal sources

Any employee who has the requisite qualification can apply through

proper channel after getting permission (NOC) from his department

Head / Region. NBP allows its employees to apply for the suitable

positions within the organization for enhancement of proper status.

b) External sources

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External sources i.e through solicited methods MTOs (Management

Trainee Officers) appointed through Head Office. Training &

Development are given at Staff Colleges in different Provincial cities.

After that placement is done at different Regions.

5.3 TRAINING AND DEVELOPMENT

Training Need Assessment

Training and development phase and the evaluation phase depend on inputs

form assessment. The purpose of the assessment is to define what employee

should learn in relation to desired job behaviors. Methods and techniques,

carefully delivered systematically in a supportive, encouraging environment

are based on sound principles of learning. Training is essential for

development of skill and knowledge of employees. Training Programmes

follow three phase sequence:-

1. Needs Assessment

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2. Implementation

3. Evaluation

Firstly, focus what is to be learned that is required as per job specification.

1. Continuous cycle of organization analysis

2. Operations analysis

3. Analysis of the training needs of employees.

In evaluating training programmers we measure change in terms of four

categories.

1. Reaction

2. Learning

3. Behaviour

4. Results

Evaluation is involved in :-

1. establishing indicators of success in training as well as on the job.

2. determining exactly what job related changes have occurred as a result

of Training.

So, evaluation must provide a continuous feed back so that it can be

used to reconsider training needs.

Three levels of analysis for determining the needs that training can fulfill.

1. Organization Analysis

Focuses on identifying where within the organization training is

needed.

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2. Operations Analysis

Focuses to identify the content of training what an employee must do in

order to perform competently.

3. Individual Analysis

Determines how well each employee is performing the tasks that make

up his job.

So, it is essential to analyze the organization’s external and internal

environment.

Trends in the strategic priorities of a business, judicial decisions, civil rights

laws, union activity, productivity, absenteeism and on the job employee

behaviour will provide relevant information at this level.

So, the important question is that whether training produce changes in

employee behaviour which will contribute to our bank’s goal.

Operations analysis requires a careful examination of the work to be

performed after training. It involves:-

1. A systemic collection of information that describes how work is done.

2. Descriptions of how tasks of performance for that work can be

determined.

3. The competencies necessary for effective task performance.

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So, job analysis, performance appraisals, interviews and analysis of operating

problems all provide important inputs to analysis of training needs.

In individual analysis, difference between desired performance and actual

performance depends on the improvement of individual’s capabilities needed

for the proper working of the bank.

Employee Development

In National Bank of Pakistan following courses are offered to the employees

for development during Training Calendar that are as under:-

1 Core Banking

1.1 NBP Products & Services1.2 Consumer Banking1.3 Agriculture Finance1.4 SME Financing

1.5 Commercial Finance1.6 Corporate Banking1.7 Treasury Management1.8 Credit Management1.9 Credit Administration1.10 Risk Management1.11 Foreign Exchange1.12 KYC / AML / Constituents Accounts1.13 Branch Operations1.14 Cash Management

1.15 Branch AccountingRegulatory Compliance

2 2.1 SBP Prudential Regulations, FE Regulations and other

Guidelines2.2 Banking and Related Laws2.3 Corporate Governance2.4 Basel-II2.5 Audit and Compliance

3 Islamic Banking3.1 Principles of Shariah Compliant Banking

3.2 Islamic Financing System3.3 Shariah Compliant Products

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4 Marketing, Relationship Banking & Customer Service4.1 CRM4.2 Selling Skills

4.3 Customer Service / Customer Delight5 Leadership & Management

5.1 Leadership Skills5.2 Stress and Time Management5.3 Team Building5.4 Personality and Attitude Development5.5 Human Resource Management and Development5.6 Executive Development Programme

6 Communications Skills6.1 English Language Programme – Basic / Intermediate / Advance

6.2 Communications Skills7 Information Technology

7.1 MS Office (Complete Package)7.2 MS Power Point7.3 MS Excel Advance7.4 E-mailing & MS Outlook7.5 ATM Operations7.6 BBO / VPN7.7 EBS / IBT7.8 CBR Collections7.9 Core Banking Applications

8 Long Duration Courses

8.1 Basic Training Course8.2 Branch Management8.3 Branch Operations Management8.4 Foundation Courses (for Officers G-I, II & III)

8.4.1 Operations

8.4.2 Credit Management

8.4.3 Risk Management

8.4.4 Foreign Exchange

8.4.5 Accounting

8.4.6 Islamic Banking

8.4.7 I.T – various aspects8.5 Advance Courses (for Officers G-I, II & III)

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8.5.1 Credit Management

8.5.2 Risk Management

8.5.3 Foreign Exchange Management8.6 Executive Development Programme (Junior, Middle, Senior

levels)

5.4 PERFORMANCE MANAGEMENT

- Setting performance standards & expectations

- How performance reports are written

There are following three main things in performance Appraisal process in

NBP:-

1. Goal Setting

2. Measuring Accomplishment

3. Regular Assessments of Progress

Result Oriented Rating Method

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Main process is goal setting to establish objectives for the organization as a

whole, for each department for each manager within each branch and for

each employee.

Three things involved to establish objectives:-

1. To agree on the major objectives i.e Deposit, Advances, Profit etc

for given period of time 01 year in NBP.

2. Develop plans for how & when the objectives will be accomplished.

3. Agree on the yardsticks for determining whether the objectives have

been met.

Progress reviews are held regularly in the bank until the end of the period for

which the objectives were established.

MBO (Management by Objectives) is a complete system of planning and

control in the bank. It promotes success of each employee, employee’s

Manager, the department and the bank.

Graphic Rating Scale

Level of Performance

Rating Factors

Points

1 2 3 4 5

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Attendance & Punctuality

U n s a t i s f a c t o r y

C o n d i t i o n a l

S

a t i s f a c t o r y

A b o v e S

a t i s f a c t o r y

O

u t s t a n d i n g

Job KnowledgeAttitude, Behaviour & ResponseTo controlling offices / branches

Personal Appearance & groomingQuality of workCommitment to job & Organization /

bank / branchCommunication skills

Performance Evaluation

1. Immediate Supervisor

2. Peers

3. Subordinates

4. Self Appraisal

5. Customers served

6. Computers

In NBP performance of employees is assessed by their immediate

supervisors.

Staff Motivation to improve performance in NBP

1. Communicate Frequently

2. Encourage subordinates to learn about modern technologies

3. Encourage participation

4. Judge performance, Not Personality

5. Avoid destructive criticism

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6. Set mutually agreeable goals

7. Be specific & be an active listener

8. Continue to communicate and Assess progress toward goal

regularly

9. Make organizational rewards contingent on performance

Performance Management requires a willingness and a commitment to focus

on improving performance at the level of the individual every day.

Broad Process of Performance Management

1. Define Performance

Ensure that an employee individually and the department as a whole

know what is expected to them.

i. Goal setting is a vital role in improving performance and

success. So, improvement and productivity increase by using

goal setting.

ii. To measure the extent to which goals have been accomplished.

iii. Regular assessment of progress toward goals focuses the

attention and efforts of an employee.

2. Facilitate Performance

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Managers who are committed to managing for maximum

performance recognize that one their major responsibilities is to

eliminate roadblocks to successful performance.

Outdated or poorly maintained equipment, delays in receiving

supplies, inefficient design of work spaces and ineffective work

methods are the obstacles that inhibit maximum performance.

Once roadblocks to successful performance have been eliminated

the next step is to provide adequate resources i.e capital resources,

material resources or human resources.

‘Its immoral not to give people tools to meet tough goals.’

Final aspect of performance facilitation is the careful selection of

employees. Therefore, top management at Head Office, Karachi

involved in selecting new employees.

3. Encourage Performance

To encourage performance, especially repeated good performance

managers must provide a sufficient number of rewards that employees

really value in a timely and fair manner, Pay, benefits, free time, special

privilege etc.

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5.5 EMPLOYEE COMPENSATION AND BENEFITS

- Types of compensation and benefits

Compensation includes direct cash payments and indirect payments in the

form of employee benefits and incentives to motivate employees for higher

levels of productivity.

Pay for performance is the new mantra. An organizational reward system

includes anything e.g; an employee values and desires that a bank is able

and willing to offer for employee contributions.

Reward Systems

Financial Non-Financial

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Direct Payments(Salaries)

Protection Programs

Employee involvement indecision making



Reward system includes both

- Financial

- Non Financial rewards

Financial rewards include direct payments and indirect payments.

Non Financial rewards include everything in a work environment that

enhances a worker / employee’s sense of self respect, chance for training and

personal development etc.

Benefits

- Medical benefits

- Pensions

- Group Term Insurance

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Indirect Payments(benefits)

Effective Supervision

Recognition

Training Opportunities

Supportive company culture



- Loan Facility

- Bonuses (02 Eid & 01 Closing year end i.e Total 03)

- Marriage Grant i.e Rs.50000/-

5.6 ORGANIZATIONAL CAREER MANAGEMENT

o Employee Job Changes

Job Changes within the organization

o Promotion

o Transfer

o Demotion

Separations

o Layoff

o Termination

o Resignation

o Retirement

Promotions

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Transfers / Layoffs

Relocations RetirementsResignations

Demotions

There are four broad types of internal moves:-

Up, down, over & out. These moves correspond to Promotions, Demotions,

Transfers and layoffs.

Promotion

Promoted employees feel greater responsibility and authority in return for

higher pay, benefits and privileges.

Promoted individuals tend to increase their commitment, more output, zeal

and zest in his work / assignments:-

Transfers

Transfer / Relocation means increased prestige and income. However, costs

of moving, up setting routines are the main hurdles. In NBP, transfer of the

employees continuously done within a Region according the policy and when

bank feels. However, status of the employees remain same. Job rotation also

done within the branch. Usually the staff is rotated after every three years.

39



Demotions

Employee demotions means to cut in pay, status, privilege or chance i.e

increments, grade etc. Disciplinary action are executed only when someone

shows inability to handle the requirements of a higher level job / health suffers

problems or changing interests.

SeparationsLay off Involuntary layoff are never pleasant. Layoffs are intended to reduce costs,

some costs may in fact increase i.e recruiting, training and retaining pension,

severance pay etc.

In NBP a good number of employees have been layed off in 1998 & 2002, but

their separation was under Golden Hand Shake Schemes and very

Handsome amount was paid to employees, who opted to separate from

service under Golden Hand Shake Scheme.

Termination

It’s a disciplinary action taken by the bank owing to financial corruption,

repeatly misconduct and so on. Employees²who!remain loyal,

trustable,`mÿôi~ated, productmve zemai~(the(asset of bank and prestige of

bank.

Resignation

40



Resignation or voluntary employee turnover is allowed in NBP. If employee

wishes!to"give!rewign, he must"give ong month advance / prior notice.

Retirement

At NBP employees crudgoingboo retireount qfter attaining the age of"60

years.̀ HR eepartment also oanages(pensions and çroup life insurance.

Pension is allowed$to alm`gmplo{ees after retirement and wheo the e}ployee

dies his widow can avail this faciloty till0death. Even if the widow äkes, the

daughter/son of empl yee can avail pmn{ion till she/he attain the age of

majority i.e. 18 years or she/he married, whichever is happened earlier.

6. LABOUR MANAGEMENT RELATIONS

Industrial relations are the processes by which human beings and their

organizations interact at the workplace to establish the terms and condition of

employment.

Union Management Agreements are as under:-

• Working conditions

• Recognition and union membership

• Rates of Pay

41



• Working hours and overtime

• Holidays

• Vacations

• Seniority

• Adjustment of complaints and grievances

• Discharge of employees

• Management Functions

• Safety and Health

Negotiation of an agreement is a process of collective bargaining and in

collective bargaining unions are pattern setters in establishing wage level,

fringe benefits and working conditions.

Union Membership

Labour Management relations are relating the needs of people. Employees

often join unions in order to have a method of collectively resisting actions of

management. When employers cut wages, pay low wages, dismiss

employees, unpleasant working conditions, employees may resist by joining

unions. Union employees may petition management for changes and if

unsuccessful they may resort to concerted work stoppage a strike.

Labour Management relations are concerned with the relationships that exist

between those persons who perform work and those who supervise it.

42



Supervisory relations involve the exercise of authority and the use of power.

So, Labour Management relations involve the use of power by managers and

employees.

When there are disagreements and disputes, the unrestrained use of power

can result in disruptive conflicts. In some cases, the conflict imposes harm

only on the employer and the workers immediately involved. In other cases,

the broader community may also suffer loss.

Collective Bargaining

Collective Bargaining is a process by which management and unions

establish terms and conditions of employment. The process is bargaining

because it involves give and take, the making of contract.

Labour management negotiations involve three major participants.

1. Union

2. Management

3. Employees

Conducting A Strike

When no decision is made between union leader and negotiating committee

to solve the problems, then great influence by union leaders to enforces

workers to gather for a strike.

A strike has its own dynamics. It is called simply to bargain demand. It’s a

pressure tactic. Strikes occur when employees refuse to work until changes

are made in compensation or in conditions of work.

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Settling DisputesMediation

Strikes are a form of open conflict which most people wish to avoid. When a

strike begins, in consequences a number of steps are consider try to resolve

the disputes.

Mediation is a major form of intervention intended to resolve disputes without

strikes. Mediation is a process by which a neutral party attempts to help

disputing parties reach a settlement of the issues that divide them. So,

mediation is a process of persuading the parties to reach an agreement.

Arbitration

Arbitration is a process by which an answer is provided for issues in dispute.

Whereas, the focus in mediation is on bringing the parties to some

agreement; the focus in arbitration is on what the agreement should be.

Handling Grievances

A grievance is an alleged violation of the rights of workers on the job. One of

followings can cause grievances:-

- As a violation of the collective bargaining agreement

- As a violation of federal / state law

- As a violation of past practice

- As a violation of company rules

- As a violation of management’s responsibility

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Grievances ordinarily arise under the provision of a collective bargaining

agreement.

Grievance Procedure

- To settle disputes arising during the period of the agreement

- To establish an orderly method for handling disputes

- To provide union’s role in processing the grievance of a single

employee

- To allow either side to appeal the results of grievance negotiation

step by step until a final and binding decision is reached

7. CRITICAL ANALYSIS

During my internship, I practically observed almost all the functions of Human

Resource Management, which were already theoretically studied by me. For

instance, I inquired about Human Resource Planning and Recruitment

process of NBP; which is centralized.

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The Head Office Karachi analyzes the staff requirement on the basis of input /

feed back received from its twenty nine regions. Then it advertises the Job

Opening in all leading news paper and after test / interviews, the recruitment

is made by NBP.

The newly appointed employers are undergone by an intensive training of six

months at NBP Staff Colleges as well as practical training in the branches.

Thereafter, they are posted at Branches / Regions / Head Office, as per

requirement. All policies of Human Resource Management are made by Head

Office Karachi and the Regional HR Department are supposed to implement

the HR polices, in true letter and spirit. For example,

(i) All human resource development and training schedules are

formulated by Head Office, the Staff Colleges are arranged for

training and Regional Offices nominate employees to attend the

training sessions.

(ii) The strategy for promotion of employees is also formulated by Head

Office. Regions provide evaluation sheets of each and every

employee to Head Office. After detail study of number of employees

in each grade/cadre, the Head Office announces the promotions of

employees, which may be 10%, 20% or 30% in each grade/cadre.

Requirement Analysis (Purpose of internship / study)

46



Purpose of my internship was to study practically the Human Resource

Department of National Bank of Pakistan, Regional Office Multan in order to

inspect that how different functions of HR are being performed by them.

Data Gathering

I used following techniques for data gathering during my internship at NBP: -

1. Personal Interviewing

2. Documents (such as duty list of employee etc.)

3. Observations

4. Books / Internet

System Design

The design of my study is ‘Descriptive’. Whatsoever, I have observed during

my internship, I have described in detail in the report.

Implementation

The final stage of any study is implementation. Implementation means the

application of study results. My internship is a ‘Descriptive’ study and only

facts are described in my report. Some weaknesses have also been

discussed along with recommendations to overcome them.

SHORTFALLS / WEAKNESSES OF HRM DEPARTMENT

Following are the weaknesses of HRM department:-

1. Delay in taking steps for HR development

47



There is an unnecessary delay in implementation of new HR

techniques/policies by the Regional Offices, because the whole system of

NBP is centralized i.e. Head office conveys guidelines and HR Department

proceeds accordingly.

2. No flexibility in rules and regulations

As already discussed that the Regional Offices have to follow the guidelines,

which are framed by the Head Office Karachi. If there, any new staff or staff

welfare related problem arise, the Regional Office cannot decide the same by

it’s own; because there is no relaxation in rules and regulations at NBP. For

any new problem the Regional Office has to move to Head Office for seeking

guidelines, which usually un-necessarily delayed the matter.

3. Political Recruitments

Being the largest and government owned Bank, the NBP faces the problem of

low qualified and less skilled staff, which it has to recruit under political

pressure.

4. Lack of Technical Support to Staff

National Bank of Pakistan is lagging behind in using the latest system and

technology. The staff of NBP is doing most of the work manually. It is the era

of information technology but NBP is using outdated techniques, which is not

employees supportive and NBP’s employees seems less skilled as compare

to other Banks.

5. Excessive Work Load on employees

The workload in NBP is increasing day by day, but there is shortage of staff

and resultantly many times complaints arise from the customers. Employees

of NBP often remain in office till 9-7, but yet unable to manage the workload.

48



6. Lack of Team Work

NBP is hiring the services of young talent in the shape of ‘Management

Trainee Officer’ (MTO) for the last five years. There is a lack of coordination

among the old employees and MTOs. Old employees considered the MTOs

as threat to their jobs, which is adversely effecting the work of Bank.

7. Lack of Participative Management System

The structure of NBP is bureaucratic, thus there is a lack of participative

management system. Normally, the employees are not being counseled when

new products are introduced or new regulations are framed at NBP

8. CONCLUSION

No doubt the NBP is financial institute but the working substances are thehuman beings. It goes with out saying that Human resources are the mostimportant in the organization and so does the Human Resource Department.It integrates all the activities and functions of the bank like job analysis,recruitment, staffing, training, designing compensation package andemployees appraisal system.

49



Human Resource Department plays the key role in the hiring, retention,motivation and promotion of the employees. Actually it assigns the specifiedduties to the specified persons in this age of specialization.

Human Resource manager should be well versed and confident in his field.He should be humane, well natured and have go face reading capabilities. Allthis ensures his success. He should be of the notion “victory is not theeverything but the way of fighting is”.

RECOMMENDATIONS

1) The NBP has centralized system. All decisions and policies are made atHead Office level, which creates a lot of delay and confusion while

performing different functions. I think that the Bank should also delegate

50



some authority to field offices or it should made flexible decisions in whichthe field offices can initiate.

2) The Human Resources should be recruited as per job specifications andwithout taking any political pressure.

3) Training and Refreshing courses should be adequate and more frequentduring the year.

4) The promotional criteria by the Human Resource Department should bewell defined and implemented as per rules.

5) More training centers should be established. If there is lack of resources,the training centers of the other organizations in the same capacity can beutilized by determining the terms and conditions.

6) The proper and competitive evaluation methods and procedures willdefinitely enhance the performance of Human Resources.

7) This is the era of Information Technology. The functions and procedures of the bank should be converted from manual to the electronic system. It willenhance the performance of the Human Resources and ultimately of thebank. Human Resource Department should give its suggestions andrecommendations to Head Office for this purpose.

8) Human Resource Department may advice and trains its employees for efficient working in order to reduce the time and conserve the resources.

9) Benefits to employees may be raised upto reasonable extent in the light of profit earned by the organization; to motivate the employees.

10) Work environment plays an important role to enhance the productivity.During my internship, I found that by improving the work environment theNBP can enhance the productivity of its employees.

11) NBP has a very vast network of customers. The Bank is also performingsuch public services which are not being dealt by other Banks. For

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example, Government receipts and payments, Pension payments, Zakatpayments and payment of salary of government employees. Branches of NBP remain over crowded due to these services. To overcome thisproblem the Bank should immediately increase its Human Resources.

12) Pay for performance compensation system must be introduced andremuneration of employees must be on the basis of their qualification andperformance and not on seniority.

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9. REFERENCES & SOURCES USED

Sr. No. Names Contact No.

1) Mr. Asghar Ali Shah, VP/Regional HR Chief 061-9200717

2) Mr. Abdul Qayyum, AVP/HR Deptt. 061-9200868

3) Mr. Muhammad Kamran, OG-I/HR Deptt. 061-9200868

BOOKS

Managing Human Resources written by Wayne – F. Cascio

Website: www.nbp.com.pk

www.hrm.com.pk

ANNEXES

53

http://www.nbp.com.pk/

http://www.hrm.com.pk/

http://www.nbp.com.pk/

http://www.hrm.com.pk/



List of 55 branches

NATIONAL BANK OF PAKISTAN

REGIONAL OFFICE MULTAN

SR.NO. BR.CODE BRANCH NAME

1 314 MAIN BRANCH, BUREWALA

2 345 MAIN BRANCH, KABIRWALA

3 349 MAIN BRANCH, KHANEWAL

4 368 MAIN BR.MIAN CHANNU

5 374 MAIN BRANCH, MULTAN

6 375 CITY BRANCH, MULTAN

7 402 MAIN BRANCH, SHUJABAD

8 414 MAIN BRANCH, VEHARI

9 417 ABDUL HAKIM BRANCH

10 437 CANTT BRANCH, MULTAN

11 463 MUNCIPAL COMMITTEE

12 497 MAIN BRANCH, MAILSI

13 542 GULGASHAT COLONY

14 544 JALALPUR PIRWALA

15 550 JAHANIAN BRANCH

16 561 KACHA KHUH BRANCH

17 563 ISMAILABAD BRANCH, MULTAN

18 575 THATTA SADIQABAD BRANCH

19 585 QADIR PUR RAWAN BRANCH

20 627 LAR BRANCH, MULTAN

54



21 654 ZAHEER ABAD SHAHEED BR.

22 695 NAWABPUR BRANCH

23 697 MITRO BRANCH

24 734 DISTT.COURTS KHANEWAL

25 737 BWP BRANCH VEHARI

26 738 GHALLA MANDI BUREWALA

27 761 GAGGOO BRANCH

28 835 TIMBER MARKET MULTAN

29 860 CHAK NO.12 /A.H BRANCH

30 861 SHANTI NAGAR BRANCH

31 905 KUKKAR HATTA BRANCH

32 935 MATTITAL BRANCH, MULTAN

33 943 TULAMBA BRANCH

34 959 PUNJ KASSI BRANCH

35 1312 SARDAR PUR BRANCH

36 1325 FERTILIZER FACTORY MULTAN

37 1420 UGGUANA 95/15L

38 1440 SARAI SIDHU BRANCH

39 1461 MAKHDOM PUR PAHORAN

40 1473 DEHLI GATE BR.MULTAN

41 1490 MUMTAZABAD BRANCH, MULTAN

42 1495 DERA ADDA BRANCH, MULTAN

43 1527 HARAM GATE BRANCH, MULTAN

44 1550 TIBBA SULTAN PUR BRANCH

45 1564 BASTI JHOKE VAINCE BRANCH

55



46 1574 JUNGLE MARYALA BRANCH

47 1602 GHALLAH MANDI BR, MULTAN

48 1603 NAWAN SHEHAR BR. MULTAN

49 1604 SADDAR BAZAR BR. MULTAN

50 1764 CHAK 100-WB BRANCH, VEHARI

51 1801 CHAK 168/10R KHANEWAL

52 1839 TEHSIL COMPLEX MIAN CHANNU

53 1931 BOSAN ROAD MULTAN

54 1953 NISHTER ROAD BRANCH, MULTAN

55 1995 SHAH RUKN-E-ALAM BRANCH

56 2026 DRY PORT TRUST BRANCH

CORPORATE INFORMATION

Board of Directors Syed Ali Raza Chairman & PresidentM.Ayub Khan Tareen

56



Tariq KirmaniSikandar Hayat JamaliAzam FaruqueIbrar A. Mumtaz

M.Arshad Chaudhary

Audit Committee Azam Faruque ChairmanIbrar A. MumtazMian Kausar Hameed

Auditors Ford Rhodes Sidat Hyder & Co.Chartered AccountantsM. Yousuf Adil Saleem & Co.Chartered Accountants

Legal Advisors Mandviwala & Zafar Advocates & Legal Consultants

Registered & Head Office NBP BuildingI.I. Chundrigar Road, Karachi, Pakistan.

Registrar’s & Share Registration Office THK Associates (Pvt.) Ltd.Shares Department, Ground Floor,Modern Motors House,Beaumont Road,Karachi, Pakistan.

Website www.nbp.com.pk

Senior Management

Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group

Shahid Anwar Khan SEVP & Group Chief, Credit Management GroupDr. Asif A. Brohi SEVP & Group Chief, Operations Group

57



Imam Bakhsh Baloch SEVP & Group Chief, Audit & Inspection Group

Ziaullah Khan SEVP & Group Chief, Compliance Group

Dr. Mirza Abrar Baig

SEVP & Group Chief, Human Resources Management &

Administration Group

Amer Siddiqui SEVP & Group Chief, Commercial & Retail Banking Group

Muhammad Nusrat Vohra SEVP & Group Chief, Treasury Management Group

Amim Akhtar EVP & PSO to the President

Ekhlaq Ahmed EVP & Secretary Board of Directors

Tajammal Hussain Bokharee EVP/Divisional Head, Special Assets Management Group

Mrs. Khurshid Maqsood Ali

EVP & Divisional Head Employee Benefits, Disbursements &

Trustee Division

Tahir Yaqoob

EVP & Group Chief, Overseas Coordination & Management

Group

Anwar Ahmed Meenai EVP & Divisional Head, Islamic Banking

Naeem Syed EVP & Head, Core Banking Application, PMO

Aamir Sattar

Financial Controller & Divisional Head, Financial Control

Division

Atif Hassan Khan Group Chief (A), Information Technology Group