National Bank of Pakistan (HRM)

Final Assignment Human Resource Management

“HR Analysis Report”

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Table of Contents Page No  1) Dedication…………………………………………………………………………

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2) Acknowledgement……………………………………………………………

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Summary………………………………………………………… ……………… 3) Executive Summary………………………………………… ………………………………………………… …………………… 4) Company Introduction ……………………………

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5) Vision…………………………………………………………………………………

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……………………………………………………… ………………………………………………… ……………………… 6) Mission ……………………………

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……………………………………………………… ……………………………………………. ………………. 7) Core values …………………………

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……………………………………………………… ……………………………………………………. …………………………. 8) Goals …………………………… 9) HR Mission ………………………… ……………………………………………………… ……………………………………………. ……………….

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……………………………………………………… …………………………………………… ………………… 10) HR Values …………………………… Organization n Hierarchy Hierarchy Chart………… Chart…………………… …………………… …………………. ………... 11) Organizatio

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Regional Management Management Chart …………………… ……………………………… …………………… ………… 12) Regional

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Struct ctur uree of HRM HRM Depa Depart rtme ment nt…… ………… ………… ………… ………… ………… ………… …… 13) Stru

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HRM Proce rocess ss in the the orga organi niza zati tion on…… ………… ………… ………… ………… ………… ……… … 14) HRM

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Activities………………………………………………………………… …………………………… 15) HRM Activities…………………………………… 16) HR Planning & Forecasting……………………………………………..

17) Employee Recruitment and Selection…………………………….

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18) Training and Development………………………………………………

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19) Performance Management………………………………………………

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20) 20) Per Perfo form rman ance ce Eval Evalua uati tion on…… ………… ………… ………… ………… ………… ………… ………… ………… ………. …... 21) 21) Com Commu muni nicat catio ion n Hea Healt lth h and and Saft Safty… y……… ………… ………… ………… ………… ………… ……..

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22) 22) Labo Labour ur Mana Manage geme ment nt Rela Relattion… on…………… …………… …………… ……………… ……… …………. ………... 23) 23) Chall Challen enge gess faced faced by HR Manag Manager er…… ………… ………… ………… ………… ………… ………. …...

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Table of Contents Page No  1) Dedication…………………………………………………………………………

01

2) Acknowledgement……………………………………………………………

02

Summary………………………………………………………… ……………… 3) Executive Summary………………………………………… ………………………………………………… …………………… 4) Company Introduction ……………………………

03 04

5) Vision…………………………………………………………………………………

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……………………………………………………… ………………………………………………… ……………………… 6) Mission ……………………………

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……………………………………………………… ……………………………………………. ………………. 7) Core values …………………………

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……………………………………………………… ……………………………………………………. …………………………. 8) Goals …………………………… 9) HR Mission ………………………… ……………………………………………………… ……………………………………………. ……………….

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……………………………………………………… …………………………………………… ………………… 10) HR Values …………………………… Organization n Hierarchy Hierarchy Chart………… Chart…………………… …………………… …………………. ………... 11) Organizatio

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Regional Management Management Chart …………………… ……………………………… …………………… ………… 12) Regional

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Struct ctur uree of HRM HRM Depa Depart rtme ment nt…… ………… ………… ………… ………… ………… ………… …… 13) Stru

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HRM Proce rocess ss in the the orga organi niza zati tion on…… ………… ………… ………… ………… ………… ……… … 14) HRM

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Activities………………………………………………………………… …………………………… 15) HRM Activities…………………………………… 16) HR Planning & Forecasting……………………………………………..

17) Employee Recruitment and Selection…………………………….

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18) Training and Development………………………………………………

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19) Performance Management………………………………………………

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20) 20) Per Perfo form rman ance ce Eval Evalua uati tion on…… ………… ………… ………… ………… ………… ………… ………… ………… ………. …... 21) 21) Com Commu muni nicat catio ion n Hea Healt lth h and and Saft Safty… y……… ………… ………… ………… ………… ………… ……..

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22) 22) Labo Labour ur Mana Manage geme ment nt Rela Relattion… on…………… …………… …………… ……………… ……… …………. ………... 23) 23) Chall Challen enge gess faced faced by HR Manag Manager er…… ………… ………… ………… ………… ………… ………. …...

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24) 24) Em Employ ployee eess Job Job Requ Requir irem emen entt………… ……………… ……… …………… ……………… ………… ……… …….

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Career er oppo opport rtun unit ity y in NBP… NBP……… ………… ………… ………… ………… ………… ………… ………… ………. …. 25) Care

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…………………………………………………… ……………………………………. …………. 26) Recommendations …………………………

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27) Conclusion Conclusion ………………… …………………………… …………………… …………………… …………………… …………………… ……………… …… 19

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DEDICATIONS

To hands, Shivering and uplifted  Eyes heavy and thoughtful Of my parents; Hands ever praying for me Eyes with dreams in of my bright tomorrow These hands may never fall down. These eyes may never go to asleep.

This project is dedicated to our most respectful and  honorable

Professor _________ who always motivate us towards Positive thinking and towards success.

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ACKNOWLEDGMENTS We are grateful to   ALLAH Almighty  Who Blessed us with hearing and along the mind to make work as they  should, who has given us boundless affection and depth of feelings and who has blessed us with the courage for  fulfilling the arduous writing of this project. We are extending our hearty thanks and gratitude to

 _________________  for his guidance and corporation, who very generously benefited us from his rich and precious repertory of knowledge. We are also thankful to our  parents who gave us moral support and encouragement.

“God help those who help themselves”

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Executive Summary National Bank of Pakistan has an existing Human Resource development department, which operates to increase the existing skills of the people existing or coming in the organization, in order to achieve its objectives in a more efficient and effective manner. NBP has devoid two basic training techniques. First is related to the training and development of mid term plan, regarding new clients & middle level employees. Secondly, the training & development for long term plan, regarding the career development of higher level employees. BP applies on- job and off-job strategies to train its employees (middle & higher level).NBP training & development academy advises Job rotation to ensure & facilitate the producing of all rounder. The source of this assignment confirms the availability of the training plan at least 2 months before the commencement of New Year, in order to make it easy for the socializing and orientation of the new employees. NBP believes in pre-post training test for existing employees & post training test for new employees. The trainees will be required to submit back-home action plan, which will be followed up by the JNMDC/Staff colleges. These plans will help in evaluation and end use of training.

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Company Introduction: It gives me great pleasure to exchange a few words about the bank’s   performance. NBP continued its journey of success based on our strategy of serving clients  better…. a company agile enough to take advantage of its unique domestic and international footprint, capitalizing on the largest balance sheet and customer base in Pakistan with high cross sell potential. Our standalone AAA rating (the highest in the industry), our ROE, which is amongst the highest in the Asian Banking industry, and our comfortable capital adequacy ratios,  position us well in front of our competitors for future growth. Year 2007 was an outstanding year with the bank recording the highest profit in its history. Our wide range of product offering, large branch network and committed workforce are some of our  fundamental strengths that enabled us to achieve exceptional results in a very competitive market.The pre-tax profit increased to Rs. 28.06 billion, an increase of 6.6% over last year. Earning  per share jumped by over 11.6% from Rs. 20.88 in 2006 to Rs. 23.34 in 2007. Pre- tax return on equity stood at 45.9%, whereas  pre-tax return on assets stands at 4.1% and cost to income ratio of  0.30 remained one of the highest in the sector. These results were   possible despite the fact that NBP had to make additional  provision of over Rs.3 billion as a result of withdrawal of Forced Sales Value (FSV).This year NBP also availed the offer by Government of Pakistan to redeem up to 10% of its holding in   NIT units held by the bank under Letter of Comfort (LoC) arrangement, this sell off resulted in a Capital gain of Rs. 1.8   billion. Increase in pre-tax profit was achieved through strong growth in core banking income. Net Interest income increased by Rs. 3.5 billion (11.5%) due to better yields and volume driven growth spurred by increase in consumer loan portfolio. Dividend income and Capital Gains also made a healthy contribution as it increased by Rs. 371 million and Rs. 1,145 million over 2006 respectively mainly owing to higher dividends from NIT Units as well as Capital gains recorded on sell of 10% NIT Units. Advances increased by Rs. 25 billion due to impressive contribution  by all business units. Deposits increased by a healthy Rs. 90 billion or 18% over last year. The  bank's NPL provision coverage ratio also stands at an impressive 84%.

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Vision 11 | P a g e

”To be recognized as a leader and a brand synonymous with trust, highest  standards of service quality, international best practices and social responsibility” 

Mission

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

Core Values • • • • • •

Highest standards of Integrity  Institutionalizing team work and performance culture Excellence in service Advancement of skills for tomorrow’s challenges Awareness of social and community responsibility  Value creation for all stakeholders

Goals

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“To enhance profitability and maximization of  NBP share through increasing leverage of existing customer base and diversified range of products ”

HR mission

“Provide more talented Human Resource in all NBP functional areas in relation to competition keep motivated all the employees and maintain total industrial harmony” 

HR Values We believe that; •

People make the organization

•

People collectively yield results

•

People have ambitions and aspirations to be distinguished and rewarded

•

People form the human capital to be developed and invested in.

Organization Hierarchy Chart

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President Board of  Member Executive

Regional Zonal Chief  Manager Regional Management Team

Regional Management Regional Business Chief  Regional Operational Chief  Regional Risk Management Regional Compliance Chief 

Regional HR Chief  Structure of HRM Department HRM Process in the Organization:

Manager Total Compensation

Vice President

Manager people an OD HR

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Manager Labour Relations

National bank of Pakistan has existing human resource department, which operates to: 

Increase the skills of the existing employees

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New recruitment and hiring in the organization

HRM system consist of following activities:

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Recruitment & Selection

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 Training & development

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Compensation & benefits

HR Planning and Forecasting:

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Determine the organizational goals

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Scan the organizational environment

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Set strategic goals

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Formulate the strategic plan

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Course of action is designed

Steps of planning process in NBP 

Determine the objectives

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Define required skills to meet the objectives 15 | P a g e

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Determined additional human resource requirement

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Develop action to meet the anticipated human resource needs

Forecasting: 

Zero Barrier Forecasting

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Bottom-Up Approach

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Use of Mathematical Model

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Simulation

HR Plannin g

Induction Plan

Recruitment Plan

Selection Process

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Induction Plan

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Agriculture field officers (AFO`s)

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Customer facilitation officers (CFO`s)

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Management trainee officers (MTO`s)

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Cash officers (co`s)

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Relationship Managers (RM)

(Competitive examination through SBP/Ibp)

Employee’s Recuitment & Selection

CV Screening and Short Listing

Written Entry Test

Selection and Initial HRM Final Panel/ Group Interviews interviews offer

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Recruitment Plan 

Direct from quota system



Indirectly by bank management

Selection process

Selection Process

 Talent Hunt Scheme

Employee’s Son Induction

Daily wages Staff 

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Training and development 

NBP has development group called “ organizational development and training group “

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Four staff colleges are operating under this group in Lahore, Karachi, Islamabad and Peshawar

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•

 The training is mostly carried through seminars , work shops and mostly on the job training At the time of the introduction of the employee he is given the initial training in Institute of Bankers of Pakistan (IBP). After that they are posted to their respective jobs.

National Bank of Pakistan follows two forms of  trainings

First is related to the training and development of new and mid level employees 

Second is the training for long terms plans, regarding the career development of higher level employees 

•

•

NBP applies on-job and off-job strategies to train its employees NBP training and development academy advices job rotation to ensure and facilitate the production of all- rounder employees.

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Training program started at least two month before the commencement of the New Year, in order to make it easy for the socializing and orientation of the new employees. •

NBP believe in pre/posttests for the existing employees and post training test for the new employees. •

 Training & Development

Course Design for Inductees

 Training Need Analysis

Skill Gaps Analysis

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 Training Calender

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 Training cataloge

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 Tarinning course module / shedule

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Outcomming (Need Based)

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Feed back analysis

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Quiz competitions

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Short, Medium, Long terms workshops, seminars, courses

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Data Reportings

Performance Management

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In performance management factor there are certain aspects about which Nation Bank takes special care, these are: 

Professional Knowledge

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Improving corporate culture

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Decision making ability

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Ability to visualize and plan

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Ability to act in emergent situation

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Ability to implement decisions

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Ability to guide and create team work

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Communication skills

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Customer relationship

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Acquaintance with technological improvement

Performance Evaluation:

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An employee do not has any right and access to the Annual Confidential Report (ACR). But he or she informed, so that he or she can rectify/improve his or her shortcoming if any

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After ACR paper work, it is enter into data base by HR

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On the basis of the evaluation, benefits are offered in term of  promotion, reward etc.

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Communication

Intructions

Circulars

Information

Modes Surprise visits

Means

President Direction

Colleges Meeting 23 | P a g e

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Health and Safety

 A different type of compensations includes:

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Medical Insurance

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Sick Leave

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Vacations

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Provident and Pension Funds

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Promotions

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Overtime pay

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Profit sharing

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 Travel/Meal/ Housing Allowances House and car loans  Yearly 3 bonuses Performance award in cash

Labour Management Relations:

 The society of labor is formed within NBP, which functions with the help of  management, so form a good relation and provides:

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Immediate relief to any accidental causality 25 | P a g e

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Some benefits to on job decreased

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Arranges variety shows for the families of the employees

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Arrange educational funds or benefits for the employees

Unionism Welfare

IRO Discipline

HR policy Planning

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SWOT Analysis of NBP STRENGTH:       

Nationalized Bank Largest Branch Network Strongest Capital Structure Monopolistic Hold Public Confidence Experience of Operation Easy access to the customers

Weakness:        

Poor performance of the workers Untrained staff and week customer handling Favoritism and Nepotism Lack of coordination Unpleasant working environment Traditional Approach Lack of IT infrastructure & less No of Online Branches Burden of running extra number of branches

Opportunities:    

Electronic Banking Leasing Business Network in foreign Countries Gain Economies of Scale

Threats:

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Globalization Increase in competition Privatization Political instability in the country Lack of inconsistency in Government’s policies

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Challenges faced by HR Manager 

Working with people of different cultures

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Managing workforce diversity

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Helping employees balanced work life conflict

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Up gradation of employees according to the environment

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Cost cutting

Employee’s job Requirement

Management Trainees for General Banking, Corporate & Investment

Banking,

Credit,

Risk

Management,

Compliance,

Commercial & Retail Banking and Treasury Management MBA or equivalent degree (Finance/General Management/Marketing Banking).

Management Trainees for HR MBA/MPA or equivalent degree in Human Resource Management.

GPA Requirements:- Minimum GPA.3.0 out of 4 or 3.7 out of 5.0 where GPA system is applicable, where GPA system is not in practice candidates must have secured a minimum of 70% aggregate marks in the examination. Only those who have already received final results are eligible to apply (Executive MBAs are ineligible).

Age Limit:- Maximum age limit 26 years as on 31.07.2009.

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Compensation:- Management Trainees will be appointed as Officer Grade-Il in regular cadre and will receive a gross compensation of around Rs.30,000Iper month plus bonuses, liberal perks and end service benefits.

Training & Development:- They will receive comprehensive training in banking and management to groom them as professional bankers.

Career Growth:- Management Trainees on completion of three years will be promoted as Officer Grade-I and in next three years as Assistant Vice President on the basis of their performance.

Selection Process:- Candidate will be required to appear for written test on the pattern of GMAT/GRE. Successful applicants will participate in group discussion and final interview.

Career opportunity in NBP NBP maintains its position as Pakistan's Premier Bank with a network of over 1200 branches locally, 18 overseas branches, 1 Subsidiary at Almaty (Kazakhstan) and 11 Representative Offices all over the world NBP also have a Joint Venture with UBL at U.K., with the name of  Pakistan International Bank (UK) Ltd., with seven branches at Main Branch, London, Manchester Branch, Glasgow Branch, Bradford Branch, Sheffield Branch, Birmingham Branch and Knightsbridge Branch (London).  The Bank has employed more than 15,000 people world wide.  The various departments include: Consumer Banking – Corporate Finance – Investment Banking – Agricultural Banking – Transactional Banking – Operations – Software Development and Automation – Financial Control – Treasury – Internal Audit –

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Risk Management & Credit – Economic & Business research – Training & Development – Strategic Planning – Human Resources

NBP offers unlimited opportunities to its employees for continuous personal and professional growth: 1)

Change Management Program: NBP has started an ambitious Change Management Program to further train its employees to meet the challenges of present day requirements.

2)

Training of new staff: Training and development are the core issues of  HR, which will ultimately improve our customer service and help us attain the standard of a progressive bank.

3)

Benefits: Besides a competitive financial package, we offer excellent working conditions, job satisfaction, superior leadership, and a conductive environment for growth.

Recommendation 

Employees should be involved in decisions affecting them

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Promotion and reward system should be fair

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Introducing new and efficient products

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 Total quality approch should be used

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 Trainning should be according to assessed needs

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