Presentation of Human Resource Virtual University of Pakistan by rana.sfdr.web

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									Muhammad Safdar
         Brief Introduction of the
National Bank of Pakistan is one of the largest commercial
bank operating in Pakistan. It has redefined its role and has moved
from a public sector organization into a modern commercial bank.
While it continues to act as trustee of public funds and as the agent to
the State Bank of Pakistan (in places where SBP does not have a
presence) it has diversified its business portfolio and is today a major
lead player in the debt equity market, corporate investment banking,
retail and consumer banking, agricultural financing, treasury services
and is showing growing interest in promoting and developing the
country's small and medium enterprises and at the same time fulfilling
its social responsibilities, NBP headquarters in Karachi, Pakistan with
over 1,200 branches country wide. The bank provides both
commercial and public sector banking services. It has assets
worth USD 12.293 billion in 2007.[1] Its subsidiaries include NBP
Capital, NBP Modaraba Management Company, NBP Exchange
Company, Taurus Securities, NBP Almaty and others.
Business volume
 Competitors
Competitors of National Bank of Pakistan in Pakistan are
 The Bank of Punjab

 Askari bank Limited.

 Bank Alfalah Limited.

 Allied Bank Limited
 Bank Al-Habib Ltd.

 Faysal Bank Ltd.

 United Bank Ltd.

 Standard Chartered Bank Ltd.

 Silk Bank Ltd.

 Faysal Bank Ltd.
 JS Bank Ltd.

 MCB Bank Ltd.
 Habib Bank Ltd.
Organizational Hierarchy Chart

Commercial &                                                              Corporate &
Retail Banking                                                            Investment
                   Business Chief      Regional Marketing
 Group Chief                                                             Banking Group
                                           Manages                           Chief

 Operations                            Regional             Manager       Corporate Head
  Group                               Operations
                                                                         North & Corporate
   Chief                                Chief                              Head South

                     Regional          Operations            Branch
                    Compliance        Departments of        Operations
                      Chief            The Region            Manager
Management                                                                Corporate
Group Chief                   Regional Risk                               Branches
                            Management Chief

                 Credit Department         Branch
                   of the Region        Credit Officers
                Training Program
   Detailed Description of Tasks
   During my internship I have completed the
    following tasks
   Deposit
   I have passed the cheques by verifying signature
    and account tally
   I have checked the last day book to verify accounts
   Maintained the Security Documents
   I have made arrangements for account deposit
   Advance
   I have worked with the NBP Advance Product which
    provide 20 advance salaries to the salaried person
   Foreign Exchange
   During the working in the Foreign Exchange department
    I have maintained the foreign currency accounts.
   Worked with the Foreign Currency Inward Remittances
   Worked with the Foreign Currency Outward
   Account Opening
   I have opened the following accounts during working in
    the Accounts Opening
       Individual Accounts
       Joint Accounts
   Bills & Remittances
   Following are the sections that I have covered in the Bills and
        Demand Draft
        Telegraphic Transfer
        Mail Transfer
   Clearing Section
        I have cleared the cheques that belong to the Main Branch
    and was submitted in other banks which is called Inward Clearing
   I have cleared the cheques that were submitted to Main Branch but
    belongs to some other banks which is called Outward Clearing
   Government Section
        In this section Pensions paid to ex-government officials and
    this branch also work for tax collection
   Retail & Consumer Banking
   12.9 Marketing Department
   12.10         Human Resource Department
                Structure of HRM
 Departmental hierarchy
 Regional HR Manager and Assistant HR Managers work
  under the HR Department of Regional Office, National
  Bank of Pakistan.
Number of Employees under HR Department
  There are 12 employees under HR Department of
  Regional Office Multan.
 There is no sub-department under HR Department
    HRM Process in the Organization
   Human resource management process in the organization
1. HRP process:
 i. Determine the organizational mission

 Organizational mission provides the National Bank of Pakistan’s

   business scope and operations.
 ii. Scan the organization environment:

 Scanning the environment means to identify the Strengths,

   Weaknesses, Opportunities and Threats that can National Bank of
   Pakistan can face. This is also called SWOT analysis.
 iii. Set strategic goals:

 Set specific long term and short term goals and objectives. These
   goals are specific, challenging and measureable.
   iv. Formulate a strategic plan:
   Strategic plan designed are the steps that formulate to meet the
    strategic goals and departmental goals.
   These are steps of HRP process.
   Determining the objectives.
   Defining skills required to meet objectives
   Determine additional human resources requirements in light of
    current HR.
   Develop action to meet the anticipated HR needs.
   Human resource planning and forecasting
   This forecasting indicates the requirements of HR that can be needed by the
    National Bank of Pakistan in future to achieve goals.
   3. Methods to forecast HR needs:
   There are four methods to forecast HR need.
   Zero- base forecasting:
     Zero-based forecasting means that the National Bank of Pakistan considers the
    current level of employment as the starting point for determining the staff needs
    in National Bank of Pakistan.
   Bottom- up approach:
     To get aggregate forecast of employment needs this method is best because in
    this method each successive level of the National Bank of Pakistan starting with
    the lowest and forecast its employee requirements.
   Use of mathematical models:
   National Bank of Pakistan also uses mathematical forecasting Human Resource
    needs. It defines the relationship between the demand and numbers of
    employees needed.
   Simulation:
     It is a technique for experimenting with a real world situation through a
    mathematical model representing that situation
   Employees recruitment & selection
i. Internal sources:
 Internal source means to fill the vacant vacancies by promoting the existing
    employees working in the National Bank of Pakistan.
 Some are the forms of Internal Hiring in the National Bank of Pakistan.

 Promotion from within.

 Job posting.

 Contacts and referrals.

ii. External sources:
 External sources means to hire employees from various external fiends, in this
    method jobs are offered through news papers and candidates apply on the vacant
    posts. Some of the external sources are as given:-
 High schools and vocational schools

 Community colleges

 Colleges and universities

 Competitors and other firms

 Unemployed

 Older individuals

 Military personnel

 Self-employed workers
 Training & development
Training and development is the main concern of HR
  department which leads to improve customer service and
  to maintain the standards of National Bank of Pakistan
1. Training needs assessment:
Following assessments needs to conduct the successful
 Customer satisfaction survey

 Customer complains

 New technology

 Interview with managers

 Self assessments

 Company records

 Employee grievances

 Observation etc.
   Performance management
   Performance standards must be based on the job not on
    the person doing the job.
   Performance standards must be established at the points
    which are achievable.
   Employees must understand the standards of
   Employees and supervisor must accept the standards of
   It must be ensured that the standards of performance
    are specific and measurable.
   Standards of performance should be time-oriented.
   Performance standards must be written.
   Performance standards must be flexible to accept the
    change or revision
 Type of compensation & benefits
National Bank of Pakistan Compensate its employees in
  the following way.
 Different types of compensation include:

 Base Pay

 Commissions

 Overtime Pay

 Bonuses, Profit Sharing, Merit Pay

 Stock Options

 Travel/Meal/Housing Allowance

 Benefits including: dental, insurance, medical, vacation,

  leaves, retirement, taxes
  Organizational career management
1. Employee job changes
 Employee job change in National Bank of Pakistan is done
   under its civil rules and regulations. Promotion and transfer is
   done under the civil service rules and regulation.
2. Job changes with the organization
 National Bank of Pakistan has designed many programs to meet
   the challenges of present day requirements. Employees trained
   in a specific manner so that they could adopt new job within the
   organization after acquiring the training.
 In 1979 Promotion Policy introduced based on three
 (i) Qualification

 (ii) Period of service

 (iii) Standard of service

    Transfers are done to fill up the vacant positions to smoothen
   the working.
 If an employee violates the rules of bank then he/she can be demoted.
   National Bank of Pakistan can also demote the employees instead of
   lay off while facing financial crises.
 Before demotion the hiring authority must give the prior written
   notice mentioning the demotion reason.
3. Separations
 When an employee does not want remain a member of National Bank
   of Pakistan then separation occurs.
a. Layoff:
 Layoff occurs when there is surplus of employees in the bank. Layoff
   can be defined as the temporary suspension or permanent termination
   of contract between the bank and the employee
b. Termination
 Termination means the complete separation of an employee with
   National Bank of Pakistan due to several reasons like, resignation by
   the employee, employee illness and inability to work, the conclusion
   of the contract for which the employee was employed, dismissal of the
c. Resignation
   Resignation is separation method in which employee of National Bank of Pakistan
    wants to stop working with the bank due to several reasons, after a process
    employee separates from the bank.
d. Retirement
   Following is the procedure of retirement in National Bank of Pakistan.
   1. HR Department writes to employee CC line manager advising retirement date
   2. Line manager arranges informal meeting with employee to discuss plans and
    confirm right to request continued working.
   3. Line manager writes to employee confirming meeting CC HR.
   4. Employee chooses to retire at 65.
   5. Normal retirement procedures apply.

Labor management relations
National Bank of Pakistan is very good in labor relations. Unions of National Bank of
   Pakistan has great strength and HR department take great care of union opinion.
               Critical Analysis
   Sometimes the theory is carried out in small change, but in
    other cases the theory has nothing to do with reality.
    Accountants, banks will not process a spreadsheet, but part
    of the worksheet is completed the trial balance. Lending
    securities traded in the same way as the theory says, such
    as mortgages, pledge, bind or advance payment of the
    insurance is the same.
   There are some differences in the types of loans the bank is
    the theory talks of four or five types of loans that the
    funding is in cash, overdrafts, loans, etc, but in practice
    there are several types a little more used by run the bank as
    finance financial application, all other concepts, etc.,
    remittances, accounts, foreign
currency deposits, credit cards are almost consistent with the
  theory. Bank's balance sheet is different from a typical
  company. You will not find an inventory, accounts
  receivable or accounts payable. Instead, the assets will see
  most of the loans and investments and liabilities, see the
  deposits and loans.
 During my internship in National Bank of Pakistan I have
  observed that bank is way behind in adopting the
  computerized system. Most of the staff members in National
  Bank of Pakistan are not familiar with the computer.
      Due to less involvement of computerized system most
  of the work done manually which takes time and because of
  this most of the time wasted working with files and
  customer orientation becomes less.
      Other important thing is that there is lake of staff in
  some departments so mostly they take work from internees.
  During the utility bills and pension dates law and order
  situation becomes worst due to less control.
                  SWOT Analysis of the
  • NBP one of the largest financial institutions in Pakistan NBP 8,000,000 customer
base holds a 24.6% share of time deposits and demand of the country. In local currency
deposits constitute 67% of bank deposits, while deposits in foreign currency account for
                                         the remaining
    • NBP has an extensive domestic branch network in 1200 (latest data) branches
 across Pakistan. The Bank has operations in 19 international fora, including the United
                        States, United Kingdom, Europe and Far East
 • NBP, total assets were Pak Rs.370 billion in December 2000. This resulted in total
assets of about Rs.268 billion gross profit of Rs.140 Pak Pak one billion loan portfolios.
The Bank is also the investment portfolio of Pak Rs.91 billion, which includes Treasury
                         securities, bonds, shares and other securities.
 • NBP cash benefit as a percentage of nonperforming loans representing 60% of the
      coverage factor of default is higher among the nationalized commercial banks.
  • NBP acts as a right wing government of Pakistan, because it is responsible for all
   government demands for the recovery of the payment. All deposits are in the NBP a
    relief that the safety of their money is guaranteed by the Government of Pakistan.
         It acts as an agent of the Central Bank in the State Bank does not have its own

   NBP staff especially at low considering his work as a burden. Usually
    spend time on other tasks in the line of duty. Using government
    property for their own needs. They are unwilling to accept the change
    of recent restructuring efforts.
   Outside the general layout and furnishings of the branches is not
    necessary according to modern banking
   NBP with significant burden in the management of these branches,
    which do not produce any income, but expenses continue to add.
   NBP relies on its traditional sources of income, it has the advantage of
    innovation in the banking sector would be to introduce retail banking
    or consumer banking and use any kind of mechanism generate more
    deposits and making more progress. Moreover, not even to keep his
    credit card because of poor management and lack of control.
   NBP has a long way behind a modern banking institution, such as
    ATMs and any other commercial bank in Pakistan only eighteen
    offices around the country have this structure.
   NBP is only 354 branches online. While the rest of the branches of the
    data collection takes time, and it is not infallible. Quantum of
    settlement is pending in different sectors, because the update of
    records every day is becoming very difficult.
  From the initial working group of retail banking.
  Set a target of at least 300 countries, large branches
   on the line
  The closure of these branches, which are a burden on
   the National Bank of Pakistan
  Management to provide specialized services and
   consulting to large enterprises, including the
   syndication of debt introduced the concept of
   relations director
  Develop a comprehensive training program to up-
   grade basic banking skills to complement existing
   staff and recruitment of high quality
   Main threats facing the NBP are a competitor, the
    denationalization of the commercial banks. The MCB is in the top
    of the list, the Bank offers 24-hour banking convenience with the
    largest ATM network in Mexico covering 15 cities with more than
    100 ATMs.
   Retail banking and results in consumer banking products such as
    credit cards, housing finance and loans car financing to small
    individual consumers, and purchases of cars, houses and consumer
    goods are generally made on a cash basis. This creates another
    threat, if no settlement will result in the sense of loss of customers
   Recently, banks and other financial institutions have introduced
    innovative schemes to attract deposits, the present arrangement
    scheme by the MCB. These plans offer scholarships in the short-
    term deposits and long term, through prints.
   Now the banks are using technology, covering the distance, no
    matter how close one, with a satellite office, online banking
    system in real time and offers telephone banking, electronic funds
    transfer, E-Banking and other modern amenities.
   1. Advance sanctioning of loans appears a lengthy
       2. Staff members are not properly trained.
   3. Promotions seems to be late due to influence of
                   different institutions
4. Administration cost is very high in National Bank of
5. Recovery system of National Bank of Pakistan needs
                      to be improved
6. Technological changes must be adopted by the NBP
7. Number of customer counters is very limited and the
    staff is also short in National Bank of Pakistan.
  1. National Bank of Pakistan need to adjust itself with the rapid
 changes appearing in the market as other banks are adopting the
                        changes as they occur.
 2. National Bank of Pakistan must make efforts towards modern
  3. Management of National Bank of Pakistan must contribute
their part to train their staff so that they focus on customers about
                    facilitating with good manner.
   4. Extensive effort is require to attract customers in the bank
 using modern look of the offices and by implementing the latest
                          technology changes.
     5. Procedure of taking services from the National Bank of
     Pakistan need to be simpler instead of lengthy procedures
Thank You

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