Maryam Naeem

MC080202354
MBA
(HRM)
National Bank of Pakistan
Civil 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
Board of
Directors
Board-Sub Committees President Secretariat Management Committee

Audit Committee HRM Sub Sports and Culture IT Sub Islamic Banking Operations Assets and Liability Credit Committee
Committee Committee Committee and Subsidiaries Committee Committee

Secretary Board of IT Group Corporate and Special Asset Treasury Audit and Compliance Group
Director Group Investment Banking Management Group Management Group Inspection
Group Group

HRM and Admin Operation Group EBD and Islamic Credit Management Commercial and Financial Control Overseas
Group TD Banking Group Division Coordination and
Division Retail Banking
management group
Group

29 Regional Overseas Offices

Offices

Regional HR Regional Operations Regional Credit Regional Business Regional Compliance

Chief Chief Management Chief Chief Chief
 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 Department
Accounts Opening Department
Government 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
President

Dr. Mirza Abrar Baig

SEVP/Group Chief Secretary

Institutional Legal Affair OD & Sports Wing Industrial Personnel

Discipline Wing Training Relations Administration
Wing Wing Division Wing

Recruitment and Staff Loans and HR Policies and Regional HR chief at

Compensation Wing Welfare Wing Projects wing regional Offices
 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 Applications received and Scanned

Eligible candidates are called for written test

Group Discussion Final Individual Interview

 Training & development
Training need assessment:
In training need assessment following sources help HR
department.

New technology
Customer complains
Interview with managers
Customer satisfaction survey
Employee complaint
Company records
Observation etc
Self 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.Achievable
2.Let for review and modify
3.understood by the worker when performing job
4.Based on the job and not on the individual doing the job
5.As measurable and specific as possible
6.Should be time-oriented
7.Always in writing
8.Settled by both the supervisor and employee
 Performance management
Human 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 years
b.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