mba final report hrm zahorr

8/6/2019 MBA Final Report HRM Zahorr

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1. OBJECTIVES OF THE STUDYING THE BANK OF

PUNJAB

As I completed my MBA (Marketing) and my internship report is to study the functions

of the marketing department and to relate the theoretical concepts to practical

experiences. Following are objectives of studying the organization. The Bank of

Punjab

The Bank of Punjab is one of the government commercial bank in the

country.

I had been there many times before internship, there working environment

always attract me thats also the reason to choose BOP.

BOP provides opportunity to its staff members to learn more and more by

rotating work assignment creating team building and cross function

concepts.

BOP has large and wide range of product line so the opportunity of

learning about maximum numbers of product.

BOP always supportive to formers, it provides agree loan so great

opportunity to learn about agricultural finance.

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2. INTRODUCTION OF BANK

Formal Definition of Bank

Bank is an institution, which receives money from one party and lends to another party.

There are large numbers of definitions which are offered by the different authors keeping

view the various definitions we may define the bank in the following words.

a Bank is reliable financial institution which receives the money from one group of

people and lends to other group of people. So bank performs the duty of financial

intermediary among the people and creates the credit money.

These are the following types of banks

Central Bank

Commercial Bank

Industrial Bank

Exchange Bank

Saving Bank

EVOLUTION OF BANKING

Bank Origin. There are different views about origin of the world Bank. According to

some people the word Bank is derived from the world Bancus which means a

Bench. They argue their point by this transacted their business of money exchange on

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the benches. If the business of any businessman failed, his bench was destroyed by the

people. Due to this practice the word Bankrupt was also used.

On the other hand some people say that the world Bank is derived from German time

the word Bank was replaced by the word Bank which is called Banco in

Italian language.

History of Banking

The history of banking evolution is very interesting. In the early ages human like and

wealth was not secure. Due to fear of loot-mar and theft people buried their wealth under

land but this method was not satisfied. People started to search the custodians of wealth.

The evolution of banking started and it has crossed the following stages.

First Stage of Evolution

Second Stage of Evolution

Third stage of Evolution

Fourth Stag of Evolution

In the present age bank is modernized shape of those institutions. But to earn more profit

every bank started issuing overdraft facility without maintaining adequate cash reserves

to meet the demands of the depositors. This inability created the financial crises. Now to

maintain the good will of the banks perform their duties. All the commercial banks

perform their duties keeping in view the instructions of the Central Bank.

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GROWTH OF BANKING IN PAKISTAN

The entire banking business was controlled buy the non-Muslims before the partition of

the sub-continent. When Hindus became sure about the divisions of the sub continent,

they secretly began to transfer their capital to the safe places in India. The funds and

other valuables were transferred to India.

Establishment of State Bank.

The state bank was established soon after the independence of Pakistan as a central bank

which will govern the all other banks and financial institutions. It will make rules and

regulations and implement them. It also issues currencies.

To remove the financial difficulties and to establish sound banking system Govt.

established the State Bank on Ist July 1948. in the development, to banking system it

played very important role as a Central bank of the country.

Specialized Financial Institutions

Government of Pakistan established the specialized financial institutions like ADBP,

IDBP NDFC, PICIC, HBFC. These financial institutions financed the particular sectors

like agriculture, industry and housing.

Development of Commercial bank

Commercial banks are companies which transact business of banking in Pakistan.

Commercial banks have constituted the most important source of institutional credit in

the economy of Pakistan.

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New branches were opened in the country with the development of banking system.

These banks also extended their braches to foreign countries.

COMMERCIAL BANKING SCENARIO IN PAKISTAN

At the time of independence in 1947, there were 38 scheduled banks with 195 offices in

"Pakistan. But by December 31, 1973 there were 14 scheduled Pakistani Commercial

Banks with 3,233 offices all over Pakistan and 74 offices in the foreign countries.

Nationalization of Banks was not done 1st January, 1974 under the Nationalization Act

1974 due to certain objectives. But it had negative effects on the efficiency of the banking

sector. The commission transferred many banks to the private sector i.e. MCB and ABL.

INTRODUCTION OF THE BANK OF PUNJAB

The Bank of Punjab owes its existence to an act of provincial assembly, the bank of

Punjab act 1989; it commenced its operations, under the purview enshrined, as far back

as October 1989 with up capital 60.00 million. BOP is an alluring symbiotic epitome,

worth-emulation, of public and private partnership. The bank has earned a relevant

recognition and abundant accolades for its stellar growth and phenomenal progress;

posting historic results in all facets of its operation. Ranked as countrys premier financial

activity and honored with some of the most prestigious awards. Nurtured, nourished and

looked after with steadfast resilience yet doting tenderness against odds and obstacles, the

sapling in a span of a little over one and half a decade, has grown into a towering tree

with verdant foliage, blossoms; its balmy bower, soothing shade and shelter provide

solace and calmness as the preferred choice of thousands who bank on and repose trust in

ambience, courteous prompt and personalized service excellence to mutually beneficial

advantage.

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Bop Awards & Achievements

Excellence Award by the Central Board of Revenue

The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in

recognition of the contribution made by the bank towards Government exchequer.

3rd Kissan Time Awards

In recognition of Bank's contribution in development and growth of agricultural sector,

the Bank honored with "Top Bank for Agriculture Loans" and "Best Bank Crop

Insurance" under 3rd Kissan Time Awards year 2006.

Best Corporate Report Award

Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate

Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered

Accountants of Pakistan and the Institute of Cost and Management Accountants of

Pakistan.

16th Bolan Excellence Award

The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards

distributed in 2006.

Achievement Award

The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI

Achievement Award" 2006.

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3. OVERVIEW OF THE BANK OF PUNJAB

3.1 Brief History

The Bank of Punjab, established under The Bank of

Punjab Act, 1989, was given status of scheduled

bank on September 19, 1994. The Bank is listed on

Lahore, Karachi & Islamabad Stock Exchanges.

The Government of Punjab is the major

shareholder. The Bank has fully owned subsidiary

M/s Punjab Modaraba Services (Pvt.) Ltd, which is

profitably managing a modaraba company.

Since its incorporation the Bank has grown manifold showing remarkable growth in all

aspects. Especially, after the current management took over the affairs of the bank in

2003 there has been tremendous growth in all its facets of operations as a result of

application of prudent and pragmatic policies with futuristic approach. Owing to its

significant performance, profitability, financial standing and market penetration the Bank

has attained reputation of a responsible corporate citizen playing a pivotal role in

economic and social development of the country.

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Currently, the Bank of Punjab is regarded as one of the most profitable banks of the

country both in absolute & real terms. Branch network of the bank consists of 266

branches, which is sixth largest network in Pakistan.

Sound financial footing, improved profitability and competent management are the key

factors taken into consideration by PACRA, the credit rating agency, while assigning to

the Bank highly credible ratings of AA for long-term and A1+ for short-term which is the

highest rating in this category.

Recognizing the role of technology in effective/ efficient operations of financial sector

BOP has computerized all its branches, which are inter connected vide online system on

real time basis. Bank's customers are facilitated by shared network of on line ATMs in all

major cities of Pakistan.

Bank's share in economic growth, especially agricultural and SME sectors cannot be

undermined. Penetration into Agri-economic was made possible through strategic

positioning of branches and introduction of a number of Agri-based financing schemes

allowing the bank to play a pivotal role in strengthening this neglected sector of our

economy.

3.2 Nature of the Organization

The Bank of Punjab was established under the act of Punjab Assembly, viz .The Bank of

Punjab act, 1989. The bill to this effect was passed by government of Punjab in

accordance with the provision of the constitutions on July 26, 1989 and later on was

given the status of scheduled bank in 1994.

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The act provided the foundation on which edifice of the bank was created. The entire

responsibility of policy formulation and management has been placed, under the act, with

the board of directors.

The Bank of Punjab is working as a scheduled commercial bank with its network of 273

branches at all major business centers in the country. The Bank provides all types of

banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency,

Remittances, and Advances to Business, Trade, Industry and Agriculture. The Bank of

Punjab has indeed entered a new era of science to the nation under experience and

professional hands of its management. The Bank of Punjab plays a vital role in the

national economy through mobilization of hitherto untapped local resources, promoting

savings and providing funds for investments. Attractive rates of profit on all types of

deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange

business such as Imports, Exports and Remittances, Financing, Trade and Industry for

working capital requirements and money market operations are some facilities being

provided by the Bank. The lending policy of Bank is not only cautious and constructive

but also based on principles of prudent lending with maximum emphasis on security. As

agriculture is considered as backbone of our economy the Bank of Punjab has introduced

"Kissan Dost Agriculture Finance Scheme" to small farmers.

Vision statement

To be customer focused bank with the service excellence.

Mission statement

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To exceed the expectations of our stakeholders by leveraging our relationship with the

Government of Punjab and delivering a complete range of professional solutions with a

focus on programme driven products & services in the Agriculture and Middle Tier

Markets through a motivated team.

Core values

Our customers as our first priority

Profitability for the prosperity of our stakeholders that allows us

Corporate social constantly invest, improve and succeed

Responsibility to enrich the lives of community where we operate

Recognition and reward for the talented and high performing employees

Excellence in every thing we do

Integrity in our dealings

Respect for our customers and each other

Punjab Government Shows Faith in Bank of Punjab

Punjab Government wishes to state that being the major stake holder in the Bank of

Punjab it has full faith in the new management and operations of the Bank. The

government further pledges its unequivocal support to the Bank and firmly believes that

the affairs of the Bank are sound and its financial health robust.

Social and Economic Commitment of the Organization

The banks provide various products & services to its customer to cater their need of

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Investments and other social or business requirements. BOP is now leading the way to

the most modern and dynamic banking in the country.

Being a Banking company BOP is performing normal Banking transactions as well as

providing many job opportunities. As a govt. bank perform many social and economic

functions e.g. payment of pensions, receipts & payments of govt. funds, special services

to farmers.

3.3 Business Volume

Financial Performance

Financial highlights for the past five years ended May 31 st 2009. are presented along with

key performance indicators.

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Year Wise Growth

Year Close Income Close Expense Profit Loss Growth(%)

2002 1,615,550,270.94 -1,173,946,907.82 441,603,363.12 BASE LINE

2003 1,632,667,268.55 -1,097,946,012.40 534,721,256.15 21%

2004 2,869,338,029.73 -1,676,959,562.82

1,192,378,466.9

1 123%

2005 7,840,303,996.67 -4,462,674,531.28

3,377,629,465.3

9 183%

2006 17,835,532,927.95 -11,951,293,782.43

5,884,239,145.5

2 74%

2007 28,518,593,936.67 -21,769,277,662.42

6,749,316,274.2

5 15%

2008 35,041,452,374.16 -29,691,225,055.73 5,350,227,318.4 -21%

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3

2009 14,691,276,785.95 -15,062,093,781.04 -370,816,995.09

-107% Till

May 2009

3.4 Profile of Employees

BOP Management

Mr. Naveed Hafeez Shaikh General Manager HR

Mr. Nadeem Amir General Manager Finance

Mr. Sharjeal Masud General Manager Operations

Mr. S. M. Atif Addl. General Manager

Mr. Muhammad Salim Mirza General Manager TreasuryMr. Shaheen N. Qureshi General Manager Special Assets

Mr. Mahmood Sadiq General Manager I&PSL (LDD)

Mr. Zalmai Azam DurraniGeneral Manager Broad Base

Liability

Dr. Shahid A. ZiaGeneral Manager T.R.C.& P

Division

Mr. Feisal Azmat Khan General Manager IT

Mr. Mohammad Nauman Acting Country Risk Manager

Mr. Abdul Rehman General Manager Audit &Inspection

Mr. Salman Saeed Head Credit Policy

Mr. Hafeez ud Din Acting Country Head C&IBG

Mr. Aseer Ahmad Khan Acting Country Commercial Head

Mr. Moazzam M ManekaHead Agriculture Credit

Department

Board of Director

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0

1

Mr. Safdar Javaid Syed Chairman

02

Mr. Naeemuddin Khan President

0

3

Mr. Tariq Mahmood Pasha Director

0

4

Mr. Shafqat Ellahi Director

05

Mr. Azhar Hamid Director

0

6

Mr. Shafqat Mahmood Director

0

7

Mr. Muhammad Naveed Masud Director

0

8

Mr. Waqar Ahmed Khan Director

01 Mr. Raza Saeed Secretary

To The Board

Audit Committee

01Mr. Waqar Ahmed Khan Director

02Mr. Azhar Hamid Director

3.5 BOP Product Lines

1. BOP Deposit Products

2. BOP Loan Products

3. BOP Finance Schemes

4. Remittance of Money

5. BOP Term Deposit Receipt

6. BOP Services

BOP Deposit Products

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Current Deposit Schemes

(i) Current Account

(ii) Basic Banking Account

(iii) BOP Tijarat Account

Current Account

The Accounts shall be opened upon submission of duly filled-in Banks

prescribed Account Opening Form properly introduced in the manner provided

and on submitting all such documents as may be revised by the Bank. The Bank

reserves the right to demand such relevant documents even after opening of

account as deemed necessary.

The minimum initial deposit will be Rs.100.

No profit will be Payable.

Services Charges Rs. 50/- will be deducted if blow the monthly balance

Rs.10000/-

The Accounts may be opened singly in one name or jointly in two or more names.

ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance

1980 (as amended from time to time)

Basic Banking Account

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The minimum initial deposit will be Rs.1000.

No profit will be Payable.

No fee (service charges) for maintaining such accounts will be charged.

There will be no limit for maintain minimum balance. In the cases, there balance

in BBA's remain "NIL" for a continuous 6 month period, such accounts will be

closed.

Account holder will be allowed a maximum of 2 deposit transactions and 2 checking

withdrawals, free of charge either through cash/through clearing per month.

BOP Tijarat Account (BTA)

The rent free locker facility will be allowed on availability of locker and after

maintaining average balance for six months.

The reduction in rate of mark up on Consumer finance will be on loan amount equal to

twice of last months average balance.

The incentive package will be reviewed on quarterly basis and on the deposit procured

vis--vis cost

Profit & Loss Sharing Schemes

(i) PLS Account

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(ii) Pehlay Munafa Scheme

(iii) Senior Citizens Saving Account

(iv) Gharalyoo Saving Account

(v) Ziada Munafa Saving Account

(vi) PLS-Saving Profit Plus Account

(vii) Corporate Premium Account

(viii) Munafa hi Muanafa Account

PLS Accounts

PLS Savings Accounts may also be opened by charitable institutions, for Provident

Funds and other funds of Benevolent nature by Local Bodies, Autonomous

Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc.

and in all other cases where such accounts are required to be opened under the orders

of Competent Court of Law

The rates of profits may vary from period to period viz January to June/July to

December each year. Calculation of Profit on PLS Saving Accounts will be made for

each calendar month on the lowest credit balance of an account between the close of

the 6th day and the last day of the month.

Pehlay Munafa Scheme

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Recently this scheme is introduced to attract investors. According to this scheme profit is

paid in advance which can be reinvested. Profit rate charge is multiplier e.g. more you

invest and more the rate will apply. Period for this scheme is three, six, nine, twelve and

eighteen months.

Senior Citizens Saving Account

This is a saving bank product available for all senior citizens i.e. persons of 60 years

and above who are eligible to open a saving account as per our Banks criteria. The

account can be opened singly or preferably jointly (husband & wife) provided either

of them is of 60 years or above. This product is designed to attract procure

deposit/savings of senior citizens by offering attractive, innovative incentives and

higher rate of profit to senior citizens.

Gharayloo Saving Account

This is a saving bank product available for all females who are eligible to open a saving

account as per our Banks criteria. The account can be opened singly or jointly with

husband. This product is designed to attract procure deposit/savings of ladies particularly

housewives of expatriates & students.

Ziada Munafa saving Account

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This is a saving bank product available for general public i.e. persons who are eligible to

open a saving account as per our Banks criteria. The account can be opened singly or

jointly. This product is designed to attract procure deposit/savings of general public

particularly salaried and small investors

PLS-Saving Profit Plus Account

Individuals, corporations, organizations and various provincial / federal

government departments can open accounts under the scheme.

This is an operating account

The accounts can be opened in individual or joint names.

The deduction of Zakat and Withholding tax will be applicable as per law of the

land.

Average balance during a calendar month will be taken to determine the deposit

slabs and applicable profit rate for that month for the purpose of creating

provisions.

Munafa Hi Munafa - III

This is a term deposit product. The term is from 1 month to 5 years and the profit is paid

on monthly basis. The minimum amount of deposit is Rs.80,000/-. The rate of profit is

from 6.0 % p.a. to 8.50 % p.a. depending on the tenure which is higher than Banks

normal term deposits.

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This product is governed under PLS rule i.e. the rates mentioned are expected and the

Bank reserves the right to revise the rates and terms & conditions of profit under Profit &

Loss sharing system.

Commercial Loan

(i) Running Finance

(ii) Corporate Finance

Running Finance

Running finance facility provided by the bank to its selective customers for business

purpose only. A limit of amount is sanctioned to borrower keeping in view the financial

worth of his business. Customer has drawing power equal to loan sanctioned by bank and

only mark up will be charged on amount withdrawal for business need not on sanctioned

amount.

The loan is sanctioned against three modes.

1. Against Pledge of Shares

2. Against Government Securities

3. Against Hypothecation of Stocks

Pledge of Shares

This facility is generally extended to companies or individuals on selective basis against

pledge of tangible securities such as Shares. The facility is required to be adjusted

periodically or within the period as specified in the Sanction Advice/DAC.

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Government Securities

Government Securities include Defense Saving Certificates (DSCs), Special Saving

Certificates (SSCs), Regular Income Certificates (RICs), Behbood Certificates, US Dollar

Bonds & NIT Units etc, issued by National Saving Centre Government of the

Pakistan/National Investment Trust.

Hypothecation of Stocks

Banks in such cases although do not have a physical custody of the goods, however have

a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take

custody of the stocks, in the event the borrowers default to repay the loan or fail to meet

their obligations, as agreed. Criteria to merit this facility is provided in the Banks Credit

Policy Manual, which is care fully assessed by Risk Managers, while recommending a

credit proposal to credit committee.

Corporate & Investment Banking

This group performs its function through its following two units:

1- Corporate Banking

2- Investment Banking

Corporate Bank

The Corporate Banking shall endeavor to market new clients and retain the existing

relationships and build market share through offering superior services, competitive

pricing and wide product range to valued corporate clients including the Multi National

Companies (MNCs). This Unit taking advantage of tremendous growth potentials of

corporate accounts will continue its endeavor to remain a major contributor to Banks

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earnings.

Investment Banking

Investment Banking Unit offers full spectrum of services, which include TFCs,

Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance, Quasi-

Equity Products, Independent Advice, Equity Placements, IPOs, Equity Underwriting,

Mergers, Corporate Restructuring, Acquisitions and other products. IBU shall also work

on and come up with providing Fund Management Facilities

BOP Financing Schemes

SME Finance

Clean Pakistan CNG filling Scheme

BOP is providing finance for the establishment of CNG filling stations.

Lady Entrepreneur Scheme

Females are encouraged through micro finance schemes to start business with lower

fianc.

Auto Lease Financing Scheme

BOP as also lease auto mobiles to fulfill the need of society.

Car Dealer Financing Scheme

Finance is provided to dealers especially to car dealers at term and conditions keeping in

view the need of business.

Karobar Bharao Scheme

This scheme is introduced to expend the running business.

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Fertilizer Dealer Financing Scheme

Loans are offered in rural areas to farmers to purchase of fertilizer periodically.

Ali Akbar Group Franchise Financing Scheme

According to agreement with Ali Akbar Group fianc will be provided for its franchises

Atlas Honda Limited-Authorized Dealer Financing Scheme

An agreement is made with Atlas Honda Ltd. for financing.

Agriculture Credit

Kisan Dost Agree Finance Schemes

Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers,

pesticides, fungicides etc).

Resident Self Cultivator having maximum 50

acres. The applicant should not be defaulter of any other Bank and property should be

free from any encumbrances

Amount: Maximum Rs.500,000/- according to per acre limit of the crop.

Lease Finance Facility for Purchase of Tractor under Green Tractor

Scheme 2008-2009

Facility For Purchase Of Tractor Under Green Tractor Scheme 2008-

09"

All Farmers who have been declared successful through computerized balloting. The

applicant should be a resident, owner/self cultivator of minimum 05 Acres of agriculture

land free from all encumbrances. Existing BOP borrowers having land under Bank's

charge are also eligible under this scheme.

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Kisan Dost Tractor Finance Scheme

Provision of financial facility to the farmers and non farmers (those who provide

tractors to farmers on rental basis for various tractor related operations), for purchase of

Tractor on Lease Finance Basis.

Eligibility: Resident Self Cultivator having

Amount: Maximum Rs. 750,000/-

Live Stock Development Scheme

Provision of financial facility for purchase of animals

(Milk & meat production, cattle farming,

Poultry Farming and Fish farming) to the farmers and

non farmers (those who have their own live stock

farm/fish farm for commercial purposes) Installments are 16 equal quarterly installments

within four years excluding one year dry period

Commercial Agro Services Finance Scheme

Provision of financial facility to the commercially viable entities with immaculate track

record for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters

e.g. for providing agri services to farmers.

Commercially viable entities with immaculate track record with the Bank/Other

financial institutions.

Running Finance Facility for Livestock / Poultry and Fish Farms

Running Finance Facility for purchase of animals, cost of feed, medicines and other

running expenses of the Farm. Running Finance Facility will be provided for the type

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of Live stock Farming:

1. Calves Fattening Farms 2. Broilers Farming. 3. Layer Farming.

4. Fish Farming. 5. Semen Production Unit.

Landless People for Purchase of Buffaloes for Life Sustenance

Lease Financial Facility for purchase of Milk producing Animals for landless people.

The applicant should be having space to keep animal domestically.

Maximum limit is Rs.50,000/- against only one personal guarantee.

Consumer Finance

About Scheme

A personal loan facility for the purchase of consumer durable goods (like TV,

Refrigerator, Cooking Oven, for their personal use, repayable on easy installments.

Target Market

All serving Personnel of Armed Forces irrespective of ranks including civilian

employees.

Govt./Semi Govt. Organizations/ Autonomous Bodies

Armed Forces, BOP Employees

Limited Companies/ Multinational/Educational Institutions

Registered Firms/Financial Institutions etc.

Self Employed Professionals (SEP)

Doctors, Chartered Accountants, Architects, Engineers

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Products Available

TVs, Refrigerator, ACs, Washing Machine, Computer Notebook/Laptop Bicycles,

Mobiles, Vacuum Cleaners and many more products of all renowned brands.

Down Payment

0%

Tenure/Loan Amount/ Mark-up Rate

Tenure Minimum Loan

Amount

Mark-Up

06 Months Rs. 4,000/- 0%

12 Months Rs. 6,000/- 0%

18 Months Rs. 8,000/- 09%

24 Months Rs. 12,000/- 12%

36 Months Rs. 15,000/- 18%

Eligibility Criteria

1. Age between 21 and 59 Years or retirement date; whichever is earlier

(59 Years at maturity of facility)

2. Minimum Take Home Salary is Rs. 5000/-

3. Permanent Employee with Minimum 01 Year of service with Army.

4. Have valid CNIC

Experience:

Permanent Employ: 2 years in current business

Valid CNIC

Documents Required

1. Application From

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Maximum Tenure: 05 year

Quick Cash

A Personal running finance facility for meeting the personal needs.

Loan Amount

Minimum loan amount Rs. 50,000/-

Maximum Loan amount Rs. 5, 00,000/-

Tenure:

01 Year (Renewable)

BOP Car Loan

Demand finance facility to purchase brand new locally manufactured / assembled cars /

imported cars, Chevrolet & for personal use only.

Finance Amount

Rs. 2,00,000/- to Rs. 50,00,000/-

Down Payment

10% for Govt. and 15% for Pvt.

Tenure

1 to 5 years

Payment Mode

In monthly installments

BOP Motorcycle Loan

Salary requirement (10000/- govt. Rs. 15000/- Pvt. Employees)

3 Years job experience and valid driving license & age 25-58 years

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Period of loan, 1-3 years

Amount of facility, Rs. 20,000/- to 2, 00,000/-

Down Payment, 10%

BOP House Loan Scheme

It is a long term facility for purchase of house, flat, construction of house on self owned

plot or for renovation / improvement of home.

Who can avail:

1. Salaried persons

2. Self-employed professional (SEP) [Chartered Accounts, Engineers,

Architects & Doctors / Dentists]

3. Self-employed business persons(SEB)

Finance AmountPurchase of house/flat

construction of house/flat

Minimum

Rs.3 lac

Maximum

No limit*

Additional/Improvement

Renovation of house

Minimum

Rs.3 lac.

Maximum

No limit*

TenurePurpose Minimum Maximum

Purchase of House/flat 3 years 20 years

Purchase of plot & construction thereon

or construction only

3 years 20 years with 01 year grace

period*

Renovation/ improvement 3 years

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Smart Cash Loan

BOP ATM / Debit Card

BOP Apna Cash Card is an ATM plus Debit Card.

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Service

The BOP Debit Card holders will be able to transact at any of the 1000 +

Merchants across the country. The following services can be utilized at the

Point of Sale (POS) terminals:

Purchasing

Your BOP Debit Card can be used in place of cash at all outlets where the M-

Net logo is displayed. This is a service which lets you pay directly from your

account without using cash. When a payment is made through the debit card,

your account is directly debited.

Remittance of Money

The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money

from one place to any part of the country and outside the country. The money is remitted

by means of:

1. Demand Draft (DD)

2. Pay Order (PO)

3. Mail Transfers (MT)

4. Telegraphic Transfers (TT)

5. On line Transfer

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Demand Drafts (DD)

The most common means of remittance in the bank is Demand Draft. When a person

wants to transfer his money to anther person having account with any other bank, he can

do so by obtaining a Demand Draft. The purpose of DD is to secure the amount which we

have. DD is a very secure method of transferring the money from, one place to another.

Pay Order

Pay order is a guaranteed document issued by the bank, the payment of which is made by

the same branch issuing this pay order. Pay order is used to transfer the funds within the

city while Demand Draft used to transfer the funds between the cities.

Mail Transfer (MT)

To transfer money from one place to another through a bank the second means of

remittance is Mail Transfer generally called MT. Money is Transferred through MT

mainly because the transferor, unlike in case of DD does not want to obtain and take care

of any instrument like DD and, of course, to present it at the Drawee Bank. So in order to

avoid above mentioned risks, which may contribute to the loss or delay on the part of

both the banker and the DD holder, the money transferor resorts to the MT.

Telegraphic Transfer (TT)

The quickest means of remittance in The Bank of Punjab is Telegraphic Transfer

normally called TT. The application procedure involved in the TT is almost the same as

is in the case of MT. In fact in The Bank of Punjab the Application form for DD, MT,

and TT is the same.

On Line Banking Facility

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According to this facility the customer can make remittances and draw amount from their

account through network of branches with in the country from BOP owns branches. It is

real time on line transaction facility. Nominal commission is charged on these

transactions keeping in view the amount remitted or withdrawn.

BOP ONLINE Banking

With BOPs state of the art online banking, you can access your account from

more than 272 branches located in 65 cities across Pakistan.

Now BOP enables you to do all the following transactions in minutes through

designated ONLINE Branches.

Salient features of online banking are:

Cash Deposit

Cheque Encashment

Stop Payment

Account Statement

Funds Transfer (Account to account / IBCA)

Term Deposit Receipt

1. SNTDR-7 Days

2. SNTDR-30 Days

3. TDR -1 & Above Years

4. MIS

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Special Notice Term Deposit -7 Days Scheme (Sntd-7 Days)

Under this scheme, the rate of profit is given on retention of deposit for minimum 7 days.

After lapse of seven days, the customers will earn profit on same rate .The rate of profit

paid in last half year i.e. in December 2008 was 0.5 % per annum. For this purpose the

customers are issued certificate of different denomination as required by them. On their

encashment principal amount along with their profit is paid to customers through their

account maintained with the concerned branch

3. Special Notice Term Deposit -30 Days Scheme (Sntd-30 Days)

It is similar to above mentioned scheme in operation except the difference of 30 days.

The customer who with draw money before 30 days will earn profit proportionate to

number of days passed. The profit rate lastly announced i.e. in Dec. 2008 on this scheme

was 1%. per annum.

4. Term Deposit Receipt (TDR)

On these schemes the profit is given according to different terms and conditions agreed

between the customers and the Bank. The customers are issued different certificates for

different terms and are en-cashed on their request.

5. Monthly Income Scheme. (MIS)

This is a term deposit which is placed for 5 years and profit is payable on monthly basis.

The certificates are issued in denomination of ten thousands and multiple of 10

thousands. The rate of profit currently being paid is 11% per annum.

BOP Services

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1. Utility Bill Collection

2. BOP Locker Facility

Utility Bill Collection

BOP has over 272 branches collecting electricity, gas, telephone and WASA,

and other utility bills like demand notice for telephone connection during

business hours.

Almost all the branches have special utility bills collection counters with sun-

shelters and drinking water.

Separate booths for utility bill collection are available at all major cities for the

convenience of the public.

Branches in all major cities have electronic bill collection machines. And now-

a-days BOP management is trying to launch on-line banking system in all over

the Pakistan. For this purpose some of the branches have been equipped with

this on-line facility.

For the customers convenience, BOP accepts cheques for payment of utility

bills.

Lockers

Provision of lockers is safe custody service that the bank of Punjab provides to their

customers for keeping jewelry, important documents and other valuables.

1. Custodian

The bank is called the Custodian.

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Licensee

The customer who is permitted by the bank to use the locker is called the

Licensee..

2- Lockers Security

Security of all lockers is Equivalent to two years Rent for respective locker. Late

payment fee 5% per month of annual rent or Max of 25% of the annual rent. The

breaking charges are actual or Rs.2000/- which ever is higher.

4. ORGANIZATIONAL STRUCTURE

36

President

Commercial

& Retail

BankingGroup Chief

Regional

BusinessChief

Corporate &

Investment

BankingGroup Chief

Corporate Head

North &

Corporate Head

South

Corporate

Branches

Operations

Group

Chief

RiskManagement

Group Chief

RegionalMarketing

Manages

Regional

Operations

Chief

BranchManager

RegionalCompliance

Chief

OperationsDepartments

of The Region

BranchOperationsManager

Regional Risk

Management

Chief

Credit

Department ofThe Region

Branch

CreditOfficers


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HIERARCHY AT BRANCH LEVEL

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4.1 Main Offices

Regional Chief, Regional

Operational Head

CreditCommittee

Branch Manager,Operational Manager

InternalAudit

Cash &

Clearing

Bills &

RemittAccounts

AdvancesConsumerFinance

Customer

Deposit

I .TForeign

Exchange

NON-CLERICAL STAFF

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Registered Office/BOP Head Office

10-B, Block E-II, Main Boulevard

Gulberg III,lahore.

Tel: (042) 5783700-10

Main Branch

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7 Egerton Road Lahore

Tel: (042) 9200419,9200187

Fax: (042) 9200351

Branch Network

The Bank of Punjab has opened 273 branches. All the branches are well located in

commercial and some residential areas, thus entering to the need business community and

private individuals. All branches are air-conditioned, well furnished, and equipped with

modern facilities to, provide services in congenial atmosphere.

CITIES NO.OF BRANCHES

Faisalabad 44

Gujranwala 45

Karachi/Quetta 08

Lahore 67

Multan 63

Peshawar 08

Rawalpindi 38

Total branches 273

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REGIONAL OFFICES

The network of the branches of BOP is divided in to seven Regions in all Pakistan. The

administrate control, operational control and increasing business volume is the

responsibility of the Regional chief. The following Region has been establishedup till now.

1. Regional Office Lahore.

2. Regional Office Rawalpindi.

3. Regional Office Gujranwala.

4. Regional Office Faisal Abad.

5. Regional Office Multan.

6. Regional Office Karachi / Quetta.

7. Regional Office Peshawar

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5. HRM PROCESS IN THE BANK OF PUNJAB

There are 4982 employees working in The Bank of Punjab:

1. Total numbers of regular employees are 2839

2. Total numbers of contractual employees are 2143

3. Total numbers of executives are 487

4. Total numbers of officers are 3213

5. Total numbers of non clerical staff are 1282

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HIERARCHY OF MARKETING DEPARTMENT

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

At The Bank of Punjab this process of planning is done at Head office Lahore and

Regional Offices implement all these strategies which are determined during the planning

at Head Office.

FORECASTING HR REQUIREMENTS

Forecasting of HR requirements, at BOP is made on the following parameters:-

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Staffing Level

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

Staffing Mix

There are following categories of working staff in BOP 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_

3. Action Plans

Staffing authorizations

The Regional office is authorized 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

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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

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. Its

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

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

Forecasting Model

Current

Strength

Losses /

Withdrawal

Back-up In Future

Requirements

Surplus /

Shortage

Plans of BOP 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

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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

peoples jobs and consider future requirements.

The recruitment and selection process will be:

1. Vacancy arises

2. Job analysis

3. Job description

4. Job specification

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

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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

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

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

interview process.

Orientation

Orientation is particularly important for familiarization visual,

presentation, briefing about the BOP policy, procedures and benefits.

Placement

After completion of recruitment process, the employees are posted at needy

positions / branches.

Training

According to job descriptions and specifications training programmes are

arranged in BOP.

Performance Appraisal

Annual Performance Appraisal is made after 31st Dec of every year. Its not kept a

confidential. All points discussed with the Appraise by the Appraiser. Following

are the Parts & Sections contained in The Bank of Punjab in Annual Performance

Appraisal.

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

Name

Fathers Name

Designation

Grade

Basic Pay

Regular / Contractual

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Current Posting

Reporting to

Date of Joining BOP

Date of Last Promotion

Academic Qualification

Professional Qualifications

Status of Disciplinary actions, if any

Section-II (To be filled by the Appraise)

Mention most important achievements during the year

Section-III (To be filled by the Appraise)

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

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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

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 Appraisers Supervisor & Date

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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. BOP

allows its employees to apply for the suitable positions within the organization for

enhancement of proper status.

b) External sources

External sources i.e. through solicited methods MTOs/RMs (Management Trainee

Officers/Relationship Managers) 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

2. Implementation

3. Evaluation

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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.

2. Operations Analysis

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

perform competently.

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3. Individual Analysis

Determines how well each employee is performing the tasks that make up his job.

So, it is essential to analyze the organizations 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 behavior will provide

relevant information at this level.

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

which will contribute to our banks 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.

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 individuals capabilities needed for the proper working of

the bank.

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Employee Development

In The Bank of Punjab following courses are offered to the employees for development

during Training Calendar that are as under:-

1Core Banking

1.1 BOP Products & Services

1.2 Consumer Banking

1.3 Agriculture Finance

1.4 SME Financing

1.5 Commercial Finance

1.6 Corporate Banking

1.7 Treasury Management

1.8 Credit Management

1.9 Credit Administration1.10 Risk Management

1.11 Foreign Exchange

1.12 KYC / AML / Constituents Accounts

1.13 Branch Operations

1.14 Cash Management

1.15 Branch Accounting

Regulatory Compliance

2 2.1 SBP Prudential Regulations, FE Regulations and other Guidelines

2.2 Banking and Related Laws

2.3 Corporate Governance2.4 Basel-II

2.5 Audit and Compliance

3 Islamic Banking

3.1 Principles of Shariah Compliant Banking

3.2 Islamic Financing System

3.3 Shariah Compliant Products

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4 Marketing, Relationship Banking & Customer Service

4.1 CRM

4.2 Selling Skills

4.3 Customer Service / Customer Delight

5 Leadership & Management5.1 Leadership Skills

5.2 Stress and Time Management

5.3 Team Building

5.4 Personality and Attitude Development

5.5 Human Resource Management and Development

5.6 Executive Development Programme

6 Communications Skills

6.1 English Language Programme Basic / Intermediate / Advance

6.2 Communications Skills

7 Information Technology

7.1 MS Office (Complete Package)

7.2 MS Power Point

7.3 MS Excel Advance

7.4 E-mailing & MS Outlook

7.5 ATM Operations

7.6 BBO / VPN

7.7 EBS / IBT

7.8 CBR Collections

7.9 Core Banking Applications

8 Long Duration Courses

8.1 Basic Training Course8.2 Branch Management

8.3 Branch Operations Management

8.4 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 aspects

8.5 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 Management

8.6 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 BOP:-

1. Goal Setting

2. Measuring Accomplishment

3. Regular Assessments of Progress

Result Oriented Rating Method

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:-

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

period of time 01 year in BOP.

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, employees Manager, the department and

the bank.

Graphic Rating Scale

Level of Performance

Rating Factors

Points

1 2 3 4 5

Attendance & Punctuality

Unsatisfactory

Conditional

Satisfactory

AboveSatisfactory

Outstanding

Job Knowledge

Attitude, Behaviour & Response

To controlling offices / branches

Personal Appearance & grooming

Quality of work

Commitment to job & Organization / bank /

branch

Communication skills

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Performance Evaluation

1. Immediate Supervisor

2. Peers

3. Subordinates

4. Self Appraisal

5. Customers served

6. Computers

In BOP performance of employees is assessed by their immediate supervisors.

Staff Motivation to improve performance in BOP

1. Communicate Frequently

2. Encourage subordinates to learn about modern technologies

3. Encourage participation

4. Judge performance, Not Personality

5. Avoid destructive criticism

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 willingness and a commitment to focus on improving

performance at the level of the individual every day.

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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

Managers who are committed to managing for maximum performance

recognize that one their major responsibilities are 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.

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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.

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)

Indirect Payments(benefits)

Protection Programs

Employee involvement indecision making

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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 / employees sense of self respect, chance for training and personal development

etc.

Benefits

- Medical benefits

- Pensions

- Group Term Insurance

- Loan Facility

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

- Marriage Grant i.e Rs.50000/-

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Recognition

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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

Transfers / Layoffs

Relocations RetirementsResignations

Demotions

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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 BOP, 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.

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.

Separations

Lay off

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Involuntary layoffs 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 BOP 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

Its a disciplinary action taken by the bank owing to financial corruption, repeat

misconduct and so on. Employeeswho! remain loyal, trustable, `motivated, productive

the (asset of bank and prestige of bank.)

Resignation

Resignation or voluntary employee turnover is allowed in BOP. If employee wishes!

Togive! Resign, he must give one month advance / prior notice.

Retirement

At BOP employees can go to the retirement after attaining the age of"60 years. HR

department also organize (pensions and Group life insurance. Pension is allowed to all

employees after retirement and whose the employee dies his widow can avail this facility

till death. Even if the widow takes, 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.

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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

Working hours and overtime

Holidays

Vacations

Seniority

Adjustment of complaints and grievances

Discharge of employees

Management Functions

Safety and Health

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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.

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

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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. Its a pressure

tactic. Strikes occur when employees refuse to work until changes are made in

compensation or in conditions of work.

Settling Disputes

Mediation

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.

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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 managements responsibility

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

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- To provide unions 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 woring, 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 BOP; which is centralized.

The Head Office Lahore analyzes the staff requirement on the basis of input / feed back

received from its seven regions. Then it advertises the Job Opening in all leading news

paper and after test / interviews, the recruitment is made by BOP.

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

BOP 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 Lahore and the Regional HR

Department are supposed to implement the HR polices, in true letter and spirit. For

example,

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(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)

Purpose of my internship/study was to study practically the Human Resource Department

of The Bank of Punjab, Regional Credit Administration 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/working at BOP: -

1. Personal Interviewing

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

3. Observations

4. Books / Internet

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System Design

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

internship/working, 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

There is an unnecessary delay in implementation of new HR techniques/policies by the

Regional Offices, because the whole system of BOP 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 Lahore. If there, any new staff or staff welfare related

problem arise, the Regional Office cannot decide the same by its own; because there is

no relaxation in rules and regulations at BOP. For any new problem the Regional Office

has to move to Head Office for seeking guidelines, which usually un-necessarily delayed

the matter.

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3. Political Recruitments

Being the largest and government owned Bank, the BOP 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

The Bank of Punjab is lagging behind in using the latest system and technology. The staff

of BOP is doing most of the work manually. It is the era of information technology but

BOP is using outdated techniques, which is not employees supportive and BOPs

employees seems less skilled as compare to other Banks.

5. Excessive Work Load on employees

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

resultantly many times complaints arise from the customers. Employees of BOP often

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

6. Lack of Team Work

BOP is hiring the services of young talent in the shape of Management Trainee

Officer /Relationship Officers (MTO/RMs) for the last five years. There is a lack of

coordination among the old employees and MTOs/RMs. Old employees considered the

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

7. Lack of Participative Management System

The structure of BOP 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 BOP

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8. CONCLUSION

No doubt the BOP is financial institute but the working substances are the human beings.

It goes with out saying that Human resources are the most important 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 and employees appraisal system.

Human Resource Department plays the key role in the hiring, retention, motivation and

promotion of the employees. Actually it assigns the specified duties 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. All this ensures his success.

He should be of the notion victory is not the everything but the way of fighting is.

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9. RECOMMENDATIONS

1) The BOP has centralized system. All decisions and policies are made at Head Office

level, which creates a lot of delay and confusion while performing different functions.

I think that the Bank should also delegate some authority to field offices or it should

made flexible decisions in which the field offices can initiate.

2) The Human Resources should be recruited as per job specifications and without taking

any political pressure.

3) Training and Refreshing courses should be adequate and more frequent during the

year.

4) The promotional criteria by the Human Resource Department should be well defined

and implemented as per rules.

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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 be utilized by determining

the terms and conditions.

6) The proper and competitive evaluation methods and procedures will definitely

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 will enhance the

performance of the Human Resources and ultimately of the bank. Human Resource

Department should give its suggestions and recommendations to Head Office for thispurpose.

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 the BOP can enhance the

productivity of its employees.

11) BOP has a very vast network of customers. The Bank is also performing such public

services which are not being dealt by other Banks. For example, Government receipts

and payments, Pension payments, Zakat payments and payment of salary of

government employees. Branches of BOP remain over crowded due to these services.

To overcome this problem the Bank should immediately increase its Human

Resources.

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12) Pay for performance compensation system must be introduced and remuneration of

employees must be on the basis of their qualification and performance and not on

seniority.

10. REFERENCES & SOURCES USED

Sr. No. Names Contact No.

1) Mr. Muhammad Idrees 061-4504232

2) Mr. Tanveer Elahi 061-4504235

3) Mr. Muhammad Afzal 061-4504236

4) Mr. Fahad Tariq 061-4504236

5) Mr. Nadeem Qadir Hashmi 061-4504234

BOOKS

Managing Human Resources written by Wayne F. Cascio

Website: www.bop.com.pk

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www.hrm.com.pk

11. ANNEXURE / APPENDICES

List of 11 Branches in Multan City

THE BANK OF PUNAJB

Multan City Branches

SR.NO. BR.CODE BRANCH NAME

1 0004 QUAID-E-AZAM ROAD, MULTAN

2 0066 HUSSAIN AGAHI BRANCH, MULTAN

3 0091 GULGASHT COLONY BRANCH, MULTAN

4 0121 KUTCHERY ROAD BRANCH, MULTAN

5 0108 CHOWK SHAHEEDAN BRANCH, MULTAN

6 0130 MUMTAZABAD COLONY BRANCH, MULTAN

7 0136 KHANEWAL ROAD BRANCH, MULTAN

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8 0175 S.R.A. COLONY BRANCH, MULTAN

9 0176 NISHTER CHOWK BRANCH, MULTAN

10 0207 CLOCK TOWER BRANCH, MULTAN

11 0233 M.D.A. CHOWK BRANCH, MULTAN