internship report on national bank of pakistan 2012
DESCRIPTION
Report on National Bank of Pakistan 2012TRANSCRIPT
Maryam NaeemMC080202354
MBA (HRM)
National Bank of PakistanCivil line branch
Gujranwala
Brief Introduction of NBP
Overview Business volume Competitors
Overview of National Bank of Pakistan
“One way to keep momentum going is to have constantly greater goals”
National Bank of Pakistan was established on November 9, 1949 as a semi public commercial bank.
The main purpose of the National Bank of Pakistan at its initial stage was to extend credit to the agriculture sector.
At that time the crises were on their peak so the main purpose of National Bank of Pakistan was to face the problems that had arisen with regard to financing of jute trade.
Overview…
National Bank started its functions on November 20, 1949 with its very important eight jute centers in the East Pakistan.
Mr.Ghulam Farooq was announced the first chairman of Jute Board and Mumtaz Hassan was announced the first chairman of National Bank of Pakistan. National Bank of Pakistan was remained totally under the Jute Operations till 1950.
The first M.D of the National Bank of Pakistan was Mr. M.A. Muhajir. In 1952 Governor of State Bank of Pakistan decided to replace Imperial Bank of India by National Bank of Pakistan.
Overview…
By becoming Mr. Mumtaz Hassan the MD of NBP, the number of branches, deposits and the number of employees had increased significantly as compare earlier, it was all happen by the great struggle of Mr. Mumtaz Hussan.
In Dec. 1966 its 600th branch was opened raising the deposits to 2.31 billion, and staff to 14, 963. Up to 1965, the shareholders had received 225% of their original investment.
Now it has more than 21549 employees 1537 branches and Rs.208283 million deposits.
Business Volume of NBP
1. Paid-up capital is Rs.8969 millions.
2. NBP has net assets worth Rs.102459218.
3. Share Capital is Rs. 8154319.
4. Earning per share is Rs. 23.34.
5. Reserves worth Rs. 15772124.
Competitors Askari Bank Habib Bank Limited United Bank Limited First Woman Bank Muslim Commercial Bank PICIC Commercial Bank Bank of Punjab Dubai Islamic Bank National Savings Allied Bank Limited Saudi Pak Commercial Bank Ltd Union Bank Limited
Competitors… Faysal Bank Standard Charter Prime Bank Bank Al- Falah My bank Silk Bank Sonehri Bank Metropolitan Bank Arif Habib Bank The Bank of Khaibar Bolan Bank Limited Platinum Commercial Bank Ltd Mashreq Bank
Organizational Hierarchy Chart
Chairman and President
EBD and TD
Operation Group
Compliance GroupTreasury Management Group
Regional Compliance Chief
Regional Business Chief
Regional Credit Management Chief
Regional Operations Chief
Regional HR Chief
Overseas Offices29 Regional Offices
Overseas Coordination and management group
Financial Control Division
Commercial and
Retail Banking Group
Credit Management Group
Islamic Banking Division
Audit and Inspection Group
Special Asset Management Group
Corporate and Investment Banking Group
Credit CommitteeAssets and Liability Committee
Operations Committee
Islamic Banking and Subsidiaries
IT Sub Committee
Sports and Culture Committee
HRM Sub Committee
Audit Committee
Board of Directors
Secretary Board of Director Group
IT Group
President Secretariat Management CommitteeBoard-Sub Committees
HRM and Admin Group
Training Program
During the short time period of eight weeks of my internship at National Bank of Pakistan, I was given an opportunity to work in following four departments of the bank.
HR DepartmentAccounts Opening DepartmentGovernment Department Clearing Department
Tasks in HR Department
I match the entries in master file with the given voucher. I entered the expenses in their relevant accounts. I arranged the vouchers by date. I prepared debit and credit vouchers. I prepared office notes. I stamped different bills on the instructions of HR Manager. I was told about how salary is estimated every month. I was told about the whole procedure of staff loan issued to staff
members.
Tasks in Accounts Department
I entered data of current and saving accounts into the computer system by using special software called CIF.
Provide information to customer what are the benefits for having account with NBP and how can one open the account.
I fill the account opening forms in. Recheck the forms to make sure that the forms are error free. I stamped the documents on the instruction. I checked the essentials to attach with the forms like ID card,
Application form. Then I was told about to issue the cheque book.
Tasks in Government section
I learn how to behave with customers if they are in anger because usually pension holders are aged people.
I learned how to handle the documents like cheques, account information, stationary bill etc.
I observed the behavior of employees and customers. I learned how to keep the records I learned computer operating in this section. I learned how to manage the receipts and payments.
Tasks in Clearing section
I assist in separating the fanfold and NIFT (National Institutional Facilitation Technologies).
I stamped the cheques for outward intercity clearing. I prepared some memos. I recorded intercity clearing entries in required register. I learned how to make bundle of outward clearing cheques. I learned those cheques which have been returned due to
some reason must be checked again. In this department, I again prepared debit and credit
vouchers.
Tasks in Clearing section
A major issue was balancing the payments. I assist for this also.
I learned that it is of tremendous importance to keep the record of previous clearing in hard form.
I helped to keep the cheques separate which are brought in bank for clearing purpose.
Structure of HRM Department
Regional HR chief at regional Offices
HR Policies and Projects wing
SecretaryDr. Mirza Abrar BaigSEVP/Group Chief
Personnel Administration
Wing
Industrial Relations Division
Sports WingOD & Training
Wing
Legal Affair Wing
President
Institutional Discipline Wing
Recruitment and Compensation Wing
Staff Loans and Welfare Wing
HRM Process in the Organization
“The Guidance of HRM Committee of Board is a fuel for HR Team going forward with smart goals”
Human resource planning and forecasting Employees recruitment & selection Training & development Performance management Employee compensation & benefits Organizational career management Labor management relations
HRM Process in the Organization
Following steps are included in Human Resource Process.
1.Determine Mission of Organization
2.Scanning the Environment of Organization
3.Lay Down Strategic Goals
4.Devise the Strategic Plan
Human resource planning and forecasting
Forecasting:
1.Zero-base Forecasting:This method is used to find out the future staff needs at National Bank of Pakistan by considering the current level of employment as the staring pint.
2.Bottom-up Approach:It is a forecast method in which each successive level of the NBP, starting with the lowest and forecast its employee requirements in order to ultimately provide an aggregate forecast of employment needs.
Human resource planning and forecasting
Forecasting:
3.Simulation:Try out with real world situation through a mathematical model representing the situation.
4.Mathematical model Usage:For forecasting HR requirements, Mathematical model is also used. It shows the connection between needed employees and demands the number of employees.
Employees Recruitment & Selection
Recruitment
Sources of candidates:
Internal Sources:In this category, opportunity is given to NBP lower level managers by promoting them.
External Sources:In this area, opportunity is given to the people outside NBP.
Selection
Employees recruitment & selection
vacancy published in newspapers
Final Individual InterviewGroup Discussion
Eligible candidates are called for written test
Applications received and Scanned
Training & development
Training need assessment:In training need assessment following sources help HR department.
New technologyCustomer complainsInterview with managersCustomer satisfaction surveyEmployee complaintCompany recordsObservation etcSelf assessments
Training & development
2.5 month Training for Selected Candidates:
1 month at IBP( Institute of Bankers Pakistan) 1.5 month at Staff College
Training & development
The staff college obtains low-ranking bank officers for more preparation in banking sector with the course duration from six to nine weeks having 25 students in each course.
The bank also employs officers to attend banking tutorial both in Pakistan and out of the country and it adds immense significance to the flow of thoughts, information and facts which can be helpfully add to from these get-togethers.
Training & development
National Bank of Pakistan has two essential training methods:
1. It is associated with the training and development of mid term plans, concerning new customers & middle level staff.
2. Training & development for long-standing plans, concerning the job development of senior level staff.
Training & development
National Bank of Pakistan implements off-job and on-job policies to educate middle and higher level its workers.
National Bank of Pakistan training & development school counsels Job rotation to make sure and make easy the creating of all rounder.
National Bank of Pakistan has faith in pre-post training test for on hand staff and post training test for new human resources.
Performance management“Performance management is the setting performance standards and
hopes/expectations”.
Here are eight (8) situations to think when setting Performance standards:Standards of performance are:
1.Achievable2.Let for review and modify3.understood by the worker when performing job4.Based on the job and not on the individual doing the job5.As measurable and specific as possible6.Should be time-oriented7.Always in writing8.Settled by both the supervisor and employee
Performance managementHuman Resource Development section, all the time, takes chance to assess the performance of human resources. The appraisal system also helps the management of the NBP to help the managers with placement, pay, and other HR decisions.
The HRD section of the NBP carries out the appraisal for the following uses:It allows the employee, the Manager to take necessary about the improvement of the performance.The system also assists in promotion, increment in salary of the deserving employees after their assessment and also gets ready for the next person for the succession plan.
Employee compensation & benefits
Travel/Meal/Housing Allowance Overtime Pay Benefits including: dental, insurance, medical, vacation,
leaves, retirement, taxes Bonuses, Profit Sharing, Merit Pay Commissions Stock Options Base Pay
Organizational Career Management
Employee job changes:Job changes must be made in agreement with the public service rules and policies in the classified service. Any individual selected or promoted must be skilled as fit in accordance with and focus to the civil service official procedure. The “state personnel director” will manage the documentation of each and every promotion & appointment.
Job changes with the organization
Promotion Transfer Demotion
Promotion In the merit based policy of 1999, in general, appraisal of an employee was foundation of following:a.Points Average gained by the employee in his service during preceding three yearsb.Points, he would get in an assessment by the promotion or encouragement committee.
The given points by the promotion committee, nevertheless, again abridged the work out to a automatic process as: 60% points were fixed for qualification, service time span & standard of service 40% points were given to aim criteria. More improvements in the plans are being considered.
Transfer
Transfers on request take place only on sympathetic and medical grounds even as another cause is set off by the bank for meeting its administrative or organizational necessities that is to fill the available vacancies.
Worker can remain posted in one unit for up to 3 years and in a division for up to 6 years, yet some offices used to frequently transfer their employees from one unit/division to another.
Demotion
Conditions to demote any employee: The demotion is asked for by the employee and is
accepted by the hiring authority. The employee position has been brought to an ended. Employee is not performing adequately. The employee is put out of place by coming back to duty
of another employee entitled to the position. The position of employee is downwardly reclassified. The employee is demoted by another employee with
more superiority during a decrease in manpower. The employee does not receive an acceptable trial
service score.
Separations
Layoff Termination: Resignation Retirement
Separations
1. Layoff:
Layoff takes place when there is excess of human resources in NBP. So, layoff is the short-term suspension or lasting termination of service of an employee or employees’ group for certain reasons, for instance, decision that some positions are no more essential or a business is slow or disruption in job.
System of National Bank of Pakistan is computerized consequently need of staff in no more in some departments. This can be a bigger cause of Layoff.
Separations
2. Termination:
Reasons for Termination:
The end of the agreement for which the employee was in employment
Employee sickness and incapability to do work Removal from office. Employee Resignation Other reasons
Separations
3. Resignation:
The Member of Staff must Inform to his line manager in written form about his/her
intention to resign by giving the suitable contractual notice time.
The Line Manager Arranges the notice, date of leaving job and verifies annual
leaves that are outstanding with the staff member. Any outstanding annual leave remaining should be taken prior to say goodbye to the organization whenever possible.
Resignation…
Takes and forwards resignation in written to Human Resource Management along with verification of: Agreed date of leaving yearly leave situation notice of leaving the bank or transferring to
another branch or branch Make sure that the staff member returns data
on very last day.
Separations
4. Retirement Procedure:1) Human Resource Management Department notes down the
employee CC line manager direct leaving date.2) Line manager organizes casual gathering with member of staff
to talk about the procedure and verifies right to ask for continuous working.
3) Line manager writes to member of staff verifying meeting CC to Human Resource Department
4) Employee decides to give up work in the form of retirement at the age of 65.
5) Normal retirement process applies.
Labor management relations
There is a harmony among labor and management relations in National Bank of Pakistan. Both cooperate with one another. Human Resource Management Department takes care of the opinions of union.
NBP always shows an affectionate and supportive mind-set towards fresh employees and greets these employees. Society for labor welfare is structured inside National Bank of Pakistan, which operates with the aid of National Bank of Pakistan.
Labor management relations
A good affiliation is formed and it provides;
1) Arrange variety shows for the employee’s families
2) educational funds or benefits for the employees 3) Instant aid to any accident.4) incentives to on the job deceased
Critical Analysis
As I read about CRM , organizational culture, etc, at different stages of MBA in different courses, I found most of the things are not present in NBP. Factors are like; poor customer dealing by bank staff.
There is no discipline in organization.
most of the staff members come late than on time. Customers have to wait for them.
If any one comes late in office, HR Manager points him /her out, and takes necessary action but no one gives importance or listens the HR Manager.
Critical Analysis HR Manager of NBP regulates the employees to come in time
and their own work, as major part of the work is done by those internees who have been trained by them.
Staff training is needed to teach them how to deal efficiently with customers especially with old aged customers.
Such staff members are not mentally prepared to adopt new technologies to fill the gap.
No proper facility to accommodate the customers and no proper information desk which can provide information to the customers.
Critical Analysis
No proper check and balance on employees discipline.
There is a lack of motivation in the bank.
HR Manager is educated enough to perform his\her duties but somehow, somewhere, he is unable to control the whole situation as this can be done only when cooperation from both sides. Here cooperation from the staff side is missing.
Internees are not entertained well.
SWOT Analysis
Strengths
Zonal Branch State bank Agent Maximizing Shares Holder's wealth Hiring Qualified Workers Government Based Bank Well defined Policies and Objectives Dress code Lockers ATM Western Union Pension Distribution
Weaknesses Poor Discipline/Punctuality Poor Dealing Lesser number of employees Nepotism Ambiguity in Assessment Procedure Security Cameras are good for nothing Critical Process Information Desk Compliant Box is not safe:
Opportunities
Deposit Mobilizations Introduce New Products Improved marketing Strategy Advertise the Products and Services
Threats
Lower interest rates offered by other banks Threat of new Potential Development of substitute
Products Political Influence Political Instability Rivalry among competing Banks
Conclusion
I conclude:
One of the largest online banks in Pakistan is National Bank of Pakistan.
It works according to rules and regulations set by State Bank of Pakistan.
If I say, future of overall National Bank of Pakistan is bright, it will not be wrong. But when talking about civil line branch of NBP in Gujranwala, my point of view is totally changed.
Conclusion
In my opinion, the future of civil lines branch is in danger.
Poor customer relationship management, poor customer dealing, poor discipline are some factors which can harm the branch at macro level and can become a major cause in the fall of civil lines branch in near future.
But if branch overcomes its weakness by utilizing its strength and opportunity available in market, then it is a support to the drowning boat of civil line branch of NBP in Gujranwala.
Conclusion
HR department has become helpless due to rigid and non changing behavior of Employees.
Old employees do not want change actually.
Civil line branch is the zonal branch which deals with all small branches in Gujranwala region, if any branch faces any problem; civil line branch handles it as it is the head office in Gujranwala.
Conclusion
Paper work of NBP is awesome, but latest technology is as important as to survive in the market and to be in competition.
If NBP in Gujranwala covers all its weaknesses, and takes opportunities at right time, surely it can be on the way of progress Insha'Allah and will contribute in overall progress of NBP at national level and as well as at international level.
Recommendations
Regulatory authority is highly needed concerning the disciplinary matters.
A committee of senior qualified expert staff should be physically present at bank to receive complains by customers and catch the guilty person red handed.
Complain box should be sealed.
Facilities to specially old aged pension holders
Recommendations Security cameras should be technically alright and latest.
Branch must review its Marketing strategy whenever any new entrance of competitor or any product in market is visible in market as substitute
NBP should introduce deposit mobilization products.
A check and balance should be imposed on all employees that all employees follow rules and regulations.
Recommendations
Training session should be held at different intervals in a financial year.
Top Management as well as employees must follow the rules and regulation.
Account opening, loan issuing and some other procedures should be more convenient and flexible.
A handsome amount of fine should be charge to the guilty employees.
Recommendations
Any strategy implied for the over all benefit of organization should be accepted by every one, no one should have any objection on it.
Appraisal should be fair, transparent, and secured.
Separate information desk must be established in bank to facilitate the customers.
Prompt reply to the queries of the customers.
Recommendations
Favoritism and nepotism should be strictly dealt. Any employee whether of lower rank or upper rank found involved in favoritism and nepotism should be removed on the spot.
A separate investigation team should be formed to investigate the market situations and keep the working be up to date.
New qualified and competent employee must be hired to fill the gap.
Recommendations
All branches of NBP should be online for customer convenience and for best link among all its branches.
Bank mangers should not encourage the influence of customers with huge bank balance.
Higher authority should be free from any influence and pressure by politicians
All branches should deal foreign exchange.
Recommendations
Internal audit should be held and executed fairly.
External audit is of tremendous importance. It should also be held fairly.
Differential products should be introduced by NBP.
Marketing Strategy should be improved.
facilitation should be provided to civil line branch.
Thank You