INTERNSHIP REPORT

ON

BANK OF KHYBER (BOK)

(MAIN BRANCH PESHAWAR)

BY

MUHAMMAD SALMAN

CLASS NO. BP 12-21

BBA (Hons) HRM

DEPARTMENT OF MANAGEMENT SCIENCES

BACHA KHAN UNIVERSITY CHARSADDA PAKISTAN
2016
 INTERNSHIP REPORT
ON
BANK OF KHYBER (BOK)
(MAIN BRANCH PESHAWAR)

BY
MUHAMMAD SALMAN
CLASS NO. BP 12-21
SESSION: 2012-2016

An internship report submitted to Department of Management Sciences Bacha Khan

University in partial fulfillment of
The requirements for the degree of

BACHELOR OF BUSINESS ADMINISTRATION IN

(HRM)

Approved By:

______________________________ HOD/Chairman
Prof. Dr. Hamid Ullah

______________________________ Coordinator
Mr. Muhammad Taimur Khan

______________________________ Supervisor
Mr. Muhammad Taimur Khan

______________________________ Incharge Internship Report

Mr. Waseem Khan

DEPARTMENT OF MANAGEMENT SCIENCES

BACHA KHAN UNIVERSITY CHARSADDA PAKISTAN
2016

i
DEDICATION

I DEDICATE
THIS HUMBLE EFFORT
TO MY LOVING MOTHER WHO ALWAYS
STOOD BESIDE ME IN EVERY TROUBLE
OF MY LIFE, MY BROTHERS WHO
SUPPORTED ME, MY SISTERS WHO
PRAYED FOR ME, ALL MY FAMILY
MEMBERS AND FINALLY MY FATHER
SHAH JAHAN WHO ALWAYS
WANT TO SEE ME AS A SUCCESSFUL
MAN.

MUHAMMAD SALMAN

ii
 TABLE OF CONTENTS

CHAPTER TITLE PAGE No.

No.
Preface i.
Executive Summary ii.
Acknowledgment iii.
CHAPTER -1 Introduction to report 1
1.1 Background of the study 1
1.2 Purpose of internship 2
1.3 Scheme of the report 3
1.4 Methodology of the study 3
1.5 Limitation of report 4
1.6 Scheme Of The Report 4
CHAPTER -2 Introduction to the organization 5
2.1 Definition of bank 6
2.2 Historical background of the BOK 6
2.3 Vision statement of BOK 7
2.4 Mission statement of BOK 7
2.5 Core values of BOK 7
2.6 Objectives of BOK 8
2.7 Organizational structure 9
2.7.1 BOK Organizational Hierarchy 10
2.8 Departmentalization of BOK 11
2.9 Products and Scheme of BOK 14
CHAPTER -3 Function of Human Resource Management 21
3.1 Introduction 21
3.2 Employees Selection and Recruitment 21
3.2.1 Method of External Recruitment 21
3.2.2 Method of Internal Recruitment of BOK 28
3.3 Employees Orientation 29
3.3.1 Orientation definition 29

iii
 3.3.2 Objectives of Orientation 29
3.3.3 Methodology 30
3.4 Training and Development 30
3.4.1 Employees development at the BOK 36
3.5 Employees Compensation and Benefits 36
3.5.1 Types of Compensation and Benefits 37
Questionnaire Result 39
CHAPTER -4 SWOT Analysis 40
4.1 Internal environment 40
4.1.1 Strengths 40
4.1.2 Weaknesses 41
4.2 External environment 42
4.2.1 Opportunities 43
4.2.2 Threats 44
CHAPTER -5 Findings, Conclusions and Recommendations 45
5.1 Findings 45
5.2 Conclusion 46
5.3 Recommendations 47
References 48

PREFACE

Firstly, I am thankful to almighty Allah for giving me a chance to write this report
in a best possible manner. Banks plays a vital role in the development of a country and
there are many different types of Banks in Pakistan. Khyber Bank is one of them in the
Banking sector.

As a requirement of my course of BBA (hons), an internship of 8 weeks in a well

reputable organization was necessary which I did in Bank of Khyber. In all my internship
I had tried my best to get the best understanding about the working of the Bank. I have
learnt alot about the practical work in a Bank. In my report I have included what I have
learnt in Bank of Khyber.

iv
 Lastly, I pray my Allah to give a boost to Bank sector in the best interest of
Pakistan.

REGARDS

MUHAMMAD SALMAN

EXECUTIVE SUMMARY

The main focus of this study is employee training and development at the Bank of
Khyber. A well trained and industrious work force is the most important asset of any
organization. The Bank’s aim is to manage this asset in such a way so as to improve its
competitive advantage. Though the journey has just begun, the Bank is confident that it
will be able to strengthen its performance culture, provide greater value to the
organization and promote employees satisfaction and growth. The Bank mainly focuses
on development of its human resources.
It is also an exercise of applying management theory into practice and gives an
opportunity of improving interpersonal skills by working with the people, communicating
with them, and getting relevant information from them in order to write an analytical

v
report on the systems and procedures followed by the organization. Most of the data
presented in the report is collected through primary data sources. Mainly questionnaires
and face-to-face interviews have been conducted to collect the data. In secondary data
three types of sources were employed i.e. books, documents and official website of the
Bank of Khyber.
Analysis of the employee training and development showed that the training need
assessment system of the Bank is more subjective in nature and does not identify the
needs and requirements of the employees more objectively.
Moreover it was found that the Bank is conducting its internal training courses in
the library cum conference room at the head office through IBP and other institutions.
The small conference room has the capacity of just 24 trainees.
From questionnaire survey I founded that most of the employees are satisfied
from the Bank of Khyber and its training department. In training session they found the
trainers friendly and gain a lot of knowledge. The survey shows that the bank will do
more progress in future. For more competitive edge the bank should increase the salaries
and give bonuses on time.

ACKNOWLEDGEMENT
I am grateful and thankful to ALLAH the kind, Beneficent and most merciful. All
praises and thanks for almighty ALLAH, Who is the entire light of knowledge and
wisdom endowed to mankind. May ALLAH show His bounties and mercies upon the
Holy Prophet Hazrat Muhammad S.A.W and his progeny who guided the making to the
righteous path.

I am very thankful to all the peoples who helped and supported me at different
stages of my work which enabled me to write this report. I pay regards to my friends and
colleagues who took the time and trouble during the last few days to speak to me about
the way this text could be further improved. I have no words to express my gratitude to
my respected teachers and my advisor Mr. Taimoor khan whose guidance helped me to
complete this report.

vi
 I am also very grateful to the staff of Bank of Khyber who provided me an
opportunity for internship in BOK.

Muhammad Salman

vii
 CHAPTER-1

INTRODUCTION TO THE REPORT

1.1 Background of Study

Banking is an important industry in today’s world. Banks are the most important

part of the economy of every country. In Pakistan also, banking is considered very

important. Because banking system plays an important role in the economic development

of a country. Bank is a key factor for making economy stronger and to make it as good as

internationally.

The Bank of Khyber (BOK) was established in 1991. The branches of BOK are

spread all over the country. In present time BOK is playing a vital role in banking sector

especially in K.P.K, so the primary purpose of my study is to understand the peculiar

nature of The Bank of Khyber. The problems faced by this organization and the possible

remedial actions, as my study is to find all the facts upon, which analysis of the

organization is to be based.

For getting the bachelor degree in business administration BBA (hons), each student

is required to spend at least two months as an internee in a well recognized reputed

organization. Every student should try to choose the organizations which will be

emerging in the future such as companies listed under stock exchange. The students are

required to focus on the work in their own field in which they have done their

specialization or general management. A student can focus his/her study on the area of

specialization such as finance, marketing and general management.

1
1.2 Purpose of Internship

 Internship is a scheme of arrangements, requiring a student to work in an

organization for a specific period of time after completing most of his/her

course work. This program has certain specific objectives as:

 Work in real life situations.

 Apply management knowledge in practices.

 Improve personal skills i.e. human relations.

 To develop analytical skills i.e. organizational analysis, financial analysis

and marketing analysis etc.

 Help develop concrete plans, including long term and short term action

plans along with financial cost.

Main aim of this program is to make students familiar with the practical work, as
there is great difference between what they have learnt during their BBA (hons) course
and how the job is practically done.

The primary purpose of this internship report is to gather relevant information to

make an internship report on the Bank of Khyber.

Along with this second basic purpose was to work in an organization and to compare
the theory and application of management knowledge in real life situation.

2
 The report’s purpose was also to develop analytical skills by analyzing the working
of the organization through critical and SWOT analysis. Some suggestions are also given
for the improvement of situation, at the end.

1.3 Scheme of Report

The internship of eight weeks is not too long time of understanding the overall
organization’s functioning. However, main emphasis of this study is on the working of
Bank of Khyber and the training and development. The functioning of this division was
well observed during this period and can be considered as an overview of the working of
BOK. Still these observations can be extended towards the overall working of the BOK.
The major emphasis was on the area of management of the bank, working of the bank
and study of the problems pertaining to the bank. The study done will benefit students in
general and banking students in particular seeking guidance in future.

1.4 Methodology of the Study

The research methodology is a prerequisite of carrying out research. It defines the

procedure to be followed during the course of internship report. For collecting the
information rresearch methodology provides the guidelines. I have used both primary and
secondary sources of data for writing this internship report.

1. Primary data collection technique:

It was done through:

i. Personal observations.

ii. Questionnaire.

2. Secondary data collection technique:

It was done with the help of:

i. References books.

ii. Annual and semiannual reports of BOK.

3
 iii. Newspapers.

iv. Website of the bank.

v. Manuals of the bank.

vi. Internet .

1.5 Limitations of the Report

Employees training and development is difficult to analyze in a short span of two

months. Therefore the study has certain limitations as:

 Limited time period of two months in which it was very difficult to cover all the

aspects of employee training and development.

 Lack of information about training and development of the bank as well as no

information was available about the competitors; therefore it was not possible to

carry out comparative analysis.

 The staff was not too much cooperative with us to give idea and help in training

and development of bank.

1.6 Scheme of the Report

The report is divided into 5 chapters. The study has been organized in the

following manner.

Chapter # 01 Introduction to Study

This chapter includes background, purpose, scope, scheme of the report

and methodology.

Chapter # 02 Introduction to Organization

4
 This chapter covers the background and history, Mission vision, Core

value, Goods and Services etc.

Chapter # 03 HRM Function of BOK

This chapter describes the HRM function such as Recruitment and

Selection, employee’s orientation, Motivation etc.

Chapter # 04 SWOT Analysis of BOK

Chapter # 05 Conclusion and Recommendation

5
 CHAPTER-2

INTRODUCTION TO THE ORGANIZATION

2.1 Definition of Bank

Bank can be defined as:

“A financial institution which deals with money and credit, it accepts

deposits from individuals and companies at a lower rate and gives at higher rate of

interest to those who need them.”

Banks can play a vital role in the economic development of a country. If the

banking system of a country is unorganized and inefficient, it creates problem in the

process of development.

2.2 Historical Background of the Bank of Khyber

The BOK was established through an act of the K.P.K Assembly

called, “The BOK Act, 1991”, passed in June 1991, the Bank was formally launched

on November 01, 1991 and its first branch office commenced commercial operations,

at University Road, Peshawar on December 22, 1991.

The Bank of Khyber was its vast network of 29 branches nationwide rates

among the best developing bank in terms of deposits, foreign trade and business.

BOK has started the Islamic Banking operations for the first time in the

history of Pakistan on November 22, 2003 (27th Ramadan). The Bank is operating its

business in both Conventional Banking and Islamic Banking since then. BOK has

converted so for 5 branches to Islamic Banking and planning gradually, to convert all

the remaining branches to Islamic Banking in near future.

6
2.3 Vision Statement of BOK

A vision statement is a long-term goal that a company wants to achieve. A vision

statement should answer the basic question, “What do we want to become?” The

vision statement of the bank is as follows:

“To become Leading Bank providing efficient and dynamic services in both

Islamic and Conventional banking through expanded nationwide network”.

2.4 Mission Statement of BOK

The mission statement is declaration of an organization’s “reason for being”. It is

an enduring statement of purpose that differentiate one organization from other similar

enterprises. It answers the pivotal question, “What is our business?” The mission

statement of bank is as follows:

“To increase shareholders value and provide excellent service and innovative

products to customers through effective corporate governance, friendly work

environment and contributing towards an equitable socioeconomic growth.”

2.5 Core Values Of BOK

The core values of BOK are as follows:

 Highest quality of service

 Professionalism, Integrity and Team work

 Innovation and utilization of latest technology

 Corporate Social Responsibility

7
2.6 Objectives Of BOK

Under the Bank of Khyber act of 1991 of the provincial assembly of Khyber

Pakhtunkhwa the banks objectives are as follows:

 To mobilize private savings and public funds for diverting the same into

productive channels and ensure their availability

 To promote agricultural, industrial and socio-economic processes through

the active participation of private and public sector in the province

 Create a diversified and sound portfolio for utilization of idle funds and

their investment in the existing and new ventures especially in the

pioneering of high-tech agro-based export oriented and engineering

projects to ensure maximum returns.

 Participate and seek the share of the province in the capital market of

Pakistan by way of subscription through locally pooled resources in the

leading stock exchanges of the country and eventually paving the way for

establishing a stock market in the province.

2.7 Organizational Structure

The Bank of Khyber is a strong and professionally managed organization, having

a strong private sector orientation in all over the country. The BOK competes for

business with other banks to take a competitive edge on other banks in the province.

The Bank of Khyber is one of the modern organizations and it is managed by a

competent staff. The authority flows from top to bottom in BOK as it is a centralized

organization. In this chapter all the information about organization structure and

8
management are given. Based on Khyber Bank Act, the Board of Directors has the

authority to select general superintendence and direction of the affairs and business of the

Bank.

9
2.7.1 BOK’s Organizational Hierarchy

Chairman

Board of Directors

President

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officer Group 1 Officer Group 2 Officer Group 3

10
2.8 Departmentalization of BOK

Departmentalization is the process of grouping jobs according to some logical

arrangement. Also departmentalization is the activities divided and formed into
specialized groups. In functional departmentalization the grouping of job takes place
according to the similar activities. The word function used in departmentalization here to
mean organizational functions such as finance and production, rather than the basic
managerial functions such as planning or controlling.

The head office of BOK is divided into the following departments

 Credit Division

 Finance Division

 Islamic Banking Division

 Information Technology Division

 Human Resource Division

 Treasury and Investment Division

 Banking Operations Division

 Marketing Division

Credit Department

Credit department of BOK continuously personalized its policy agendas in

harmony with the rough competition met in the wake of falling markup rates situation

and growth liquidity in market. Introduction of new schemes like house, consumer, car

and micro financing will definitely improve and enhance the credit portfolio. BOK is

11
strengthening its grip on the target market for these schemes. The credit monitoring cell,

credit department, consumer finance department and micro finance department comes

under the credit division.

Finance Division

The finance department is answerable for fiscal dealing, fiscal control, financing

reporting and accounting purpose of the Bank of Khyber. The finance division tells that

the accounting histories in system are kept in agreement with the internal policies. The

finance division made rules and actions linking to the finance function and monitor return

on earning asset. Annual plan, policies, management’s directive and strategies are

controlled by the finance division.

Islamic Banking Division

The BOK’s Islamic division is working on the guideline made by sharia supervisory

board. The goal of the IBD is to implement the decision of the BOD to slowly convert the

whole system of the bank into on Islamic bank with in three years under the supervision

of the sharia supervisory board.

Information Technology Division

Information technology department developed in the last few years and try its best to

adapt the new advanced technology. The management has planned to start on-line

banking very soon to meet the bank goals, customer of the BOK will feel easy to transfer

money every-where in the country. and they will be able to transfer money between any

two BOK branch and throughout the country.

12
Human Resource Division (HRD)

HRD plays a great role in carving the present and future image of on organization

by managing the employees and most effective manner. The functional area of HRD

consist of recruitment, training, planning, performance appraisals and career development

and above all grooming of staff to adhere to office ethics and social norms. HRD provide

on the job as well as off the job training to the staff and diverse area of management. The

training relies on both internally arrange courses as well as external courses at institute of

repute in the country.

Treasury and Investment Division

BOK is now going towards revamping its treasury, would soon assume a more pro-

active rule in serving BOK customer, specially the corporate clients. Upgrading the

human resource skill is enhancing its capacity and the I.T system. In coming time BOK

will be able to manage corporate customer fund and quote money market related rate for

short-term corporate size loan.

Banking Operation Division

The banking operation division is mainly responsible to manage the operation i.e.

work processing function in the bank. The banking operation division control branch

operation and international banking department. This division proposes operational

policies, procedures and ensures strict compliance of the same through liaison with

internal audit division.

13
Marketing

The marketing division of the bank is responsible for the formulation and

implementation of marketing strategy of the bank product both on asset and liabilities

keeping in mind the business environment of the province. Accordingly the division work

to popularize the bank deposit schemes and loan products among the people with a view

to improve business and over all image of the bank.

2.9 Product and Schemes of BOK

The basic function of a bank as we all are aware is accepting deposit and leading of
money. But bank, with the passage of time, development and grooming competition,
release that only these services are not enough. So bank started providing other services
and introducing newer product to increase their customer in the grooming competition.
Established in 1991, the Bank of Khyber today is a well-known name in the banking
industry of Pakistan and especially in K.P.K. with the network of 29 branches all over
Pakistan, amongst these 29 branches 23 are present in K.P.K, 2 at Karachi, and one each
in Islamabad, Quetta, Azad Kashmir and Lahore. Additional branches are planned to be
open in the other part of the country. The bank employees over 3000 well qualified
officer. A net places great importance on their professional achievement. The bank of
Khyber is committed of providing innovative and competitive solution to all of it
customer according to their banking need a level of service that is more efficient and
personalize. Learning about the needs of its customer is a continuous process at the bank
of Khyber.

At present, the bank of Khyber has the following products and schemes for its valued
customer.

i. Consumer finance scheme.

ii. Khyber salary loan scheme.

14
 iii. Apna-karobar scheme.

iv. Khyber bike.

v. Khyber car.

The salient features of these schemes are discussed in this chapter.

Consumer Finance scheme (CFS)

The bank of Khyber has launched a consumer finance scheme for general public.
Under this scheme house hold products like electronics, audio-visual equipment like
computer, refrigerator, washing machine, AC and home appliance to be financed to the
customer on easy installments.

Eligibility

i. Citizen of Pakistan aged between 25-60 years.

ii. Scheme will be opened to all permanent employees of govt. and semi govt. local

govt., NGO, autonomous body, university, bank, reputed industries, corporation and

self-employed professional or business man.

iii. Applicant must be resident of the city where BOK’s authorized branch is operating.

iv. The monthly installment must be maximums of 1/3 of take home salary of the

applicant. (Take home salary is to be determined by the branch manager).

v. The borrower has to provide personal guarantee of third person as a security.

Guarantee

Guarantor can be a person between the age of 25 and 55 years. Preferably

residing in the same areas of applicants. Applicant must not be immediate family member

15
of the borrower. Account holder of BOK is preferred. Applicant shall not be a BOK’s
employee.

Khyber salary loan scheme

The bank of Khyber salary loan scheme has been introduced to facilitate the
employees of the bank and other organization in government sector either provincial or
federal. This loan is provided to the individual against their salaries. The eligibility for
this scheme is, all employees of provincial/federal government/semi government
autonomous bodies, corporation etc. the age limit is 18 to 55 years.

The size of loan is Rs.100000/- or up to six take home utilities whichever is lower.

Apna-Karobar Scheme

Apna-Karobar scheme the bank of Khyber scheme has been introduced to provide

opportunities to all Pakistan nationals, to start their new business or expand the existing

business. The eligibility is so simple and that is Pakistani nationals, holding national

identity card and resident/residing in K.P.K. the size of loan for fresh customer is

Rs.30000/- in urban areas and rural Rs.20000/-. The incremental increase is Rs.10000/-

and maximumRs.100000/-. The mark up rate for group loan is @ 13% and for micro loan

#@ 15%. The repayment period is 12-18 months. The borrowing equity is in the ratio of

20: 80 (reliable).Personal guarantee acceptable to BOK another acceptable securities.

Khyber Bike

BOK motor cycles finance scheme is also a great accomplishment of the bank.
This scheme has eased all those lower income employees who could not able to buy a
motor cycle. All adults, residence of K.P.K, getting regular monthly income and have
sufficient repayment capacity to meet their investment obligations are eligible for this
scheme. The scheme will soon be extended to the entire Pakistan, Azad Kashmir,
northern areas and tribal belt. The minimum age limit is 21 years. At loan maturity age

16
should not exceed 60 years. The mark-up rate is 16% and the effective flat rate is 8.9%.
The repayment period is fixed and that is 1 year, 2 years and 3 years. The minimum down
payment is Rs.10000. Two personal guarantees registered mortgage should be provided
as securities. The documentation includes mortgage and insurance is on lessee’s cost from
the selected companies. The application fee for this scheme is Rs.100/-.

Required Documents for Ijarah (motor cycle)

The following documents are to be required for ijarah of the motor cycle at the

BOK Islamic banking branch, Hayatabad Peshawar.

 Islamic banking branch (IBB) account.

 Application for motor cycle ijarah.

 Pay slip/ income certificate.

 Attested applicant CNIC.

 Letter of comfort (for govt. employees).

 Two photograph (passport size).

 Driving license.

 Utility bills (electricity & telephone).

 Bank statements (6 months).

 NTN number (if available).

 Quotation of people for the BOK.

17
  Nominee CNIC.

 Father CNIC (if allow).

Guarantors:

1. Government employee

 Attested CNIC .

 Pay slip.

 NOC.

2. Businessman

 Attested CNIC.

 Income proof on letter head.

 Guarantee letter given on letter head.

Khyber-Car

Car scheme is also a valuable product of the BOK for their customers. The
eligibility for this scheme is all adult resident of K.P.K taking monthly income regularly
on time and has sufficient capacity of repayment. The following scheme will soon be
extended to the entire Pakistan, Azad Kashmir, northern area.

The minimum age bound for this scheme is 21 years. At loan maturity, age should
not exceed 55 years. The maximum size of loan is Rs.2500000/- mark-up rate is 11% .

For this scheme the refund period is fixed and that is period of 24 months, 36
months, 48 months and 60 months maximum. Minimum borrowing equity is 10%. The

18
mortgage and legal documentation charges to be accepted by the client. Insurance is on
lessee’s charge from the selected company. Rs.300 is the all processing fee for Khyber
car.

Required documents for ijarah (motor car)

The following documents are to be required for ijarah of the motor car at the BOK

Islamic banking branch, Hayatabad Peshawar.

 Islamic Banking Branch (IBV) Account.

 Application for motor cycle ijarah.

 Pa slip/income certificate.

 Applicant attested CNIC.

 Letter of compart (government employee).

 Two photographs (passport size).

 Utility bill (electricity and telephone).

 Bank statement (six months).

 Quotation of vehicle for the BOK.

 Nominee CNIC.

 Father CNIC (if alive).

Guarantors

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1. Govt. employee

 Attested CNIC.

 Pay slip.

 NOC.

2. Businessman

 Attested CNIC.

 Income proof on letter head.

 Guarantee given on letter head.

20
 CHAPTER-3

Function of Human Resource Management

3.1 Introduction

In the success of every service organization the human resource plays a

major role. They make links between men and machine. The customer can be won or lost

by their attitude. The staff can be made loyal towards the organization by positive attitude

which can be created in a good environment. To keep a customer happy the human is

more important than a machine. However, most organization do not gives more

importance to human as it is more important than a machine.

Several parts related to human recourse of BOK are judgmentally observed in

the given text:

3.2 Employee Recruitment and Selection:

“People are at the heart of our success”

‘‘Attracting employees in sufficient number with right skills for vacant positions

is known as recruitment.’’ BOK is concerned in recruiting and hiring the best available

people in the market.

“We realize the essential role you play in our nonstop success. We are devoted to

providing you with a candidate experience that is healthy, transparent and give you full

power to make choices.”

21
3.2.1 Methods of External Recruitment

The BOK has very good procedure for selecting people from the market. The

BOK is the only bank in private sector with such a good selection process. HR

department has joint many selection technique i.e. job application form, employment test

and physical examination.

There are many procedures of “external recruitment” used for a job by Human

Resource Department section of the BOK:

The step to step Recruitment process followed by BOK is:

 Job analysis.

 Planning.

 Sourcing.

 Screening.

 Interviewing.

 Hiring.

 Reporting.

Employment Selection process

Recruitment and Selection in BOK has many processes and step that must be

followed.

 Decide what position to fill through personal planning and forecasting.

22
  Build a pool of candidates for these job by recruiting internal or external

candidate.

 Use selection tool like test, background investigation and physical exam to

identify viable candidate.

 Decide who to make an offer to, by having the supervisor and perhaps other

interview the candidate.

Analysis of positions

After planning it is analyzed that which position is going to be filled and the

requirement is analyzed by job analysis.

 Identify Candidate

BOK identifies it applicants by developing the criteria of job description and job

specification and acting upon these criteria job vacancies ads are spread to different

media.

 Prescreening and short Listing

Many applicants apply for job by knowing about the jobs advertised by

submitting CVs. Selection board drives over those CV and select those applicants

which satisfy criteria of selection board. After the screening selection board short list

the candidate who are considered most suitable for job.

 Test/Interview

In this process short listed candidate are called for test and interview according to

the nature of their applied job.

23
 Selection Interview

After short listing the candidates are called for interview. A selection interview is

the procedure designed to predict future job performance on the basis of applicant’s

oral response to oral inquiries.

 Format used in Selection interview

o Structured.

o Unstructured.

 Modes of Interview

o Penal interview

It is that type of interview in which a group of interviewers ask the questions from

applicant.

o Structured Sequential interview

An interview in which the applicant is interviewed sequentially by several persons

at a time and each one gives his comments about the applicant questions asked.

Types of Questions

o Situational

Situational interview is that type of interview in which questions are asked about

a certain situation that how one will behave in a certain situation in a job.

o Job Related

24
 A series of job related questions that focus on past job-related behaviors. Those

candidates who have past experience of job are asked these type of questions.

o Stress

A type of interview in which rude questions are asked from the candidates to

make them uncomfortable and stressful and how they will react. The stress level of

candidates is checked. These type of questions are asked according to high designation of

candidate.

o Puzzle questions

Recruiters for technical job ask puzzle questions to posture problems requiring

unique solutions to see how candidates think under pressure.

o Testing

Organizational performance always depends in part on subordinates having the

right skills and attributes. Keep in view this point BOK tries its level best to hire highly

skilled and suitable employee for each job. For judging these skills BOK conducted some

tests on the basis of

o Reliability
o Test validity

The word valid is derived from Latin validus which mean strong. The consistency

of scores obtained by the same person when retested with equivalent tests is called

reliability. The accuracy with which a test and interview with it purports to measure the

function it was designed to fill is referred as validity.

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 Types of Tests:

The BOK takes two type of tests:

o Tests of Cognitive ability.

o Physical test.

 Cognitive Test Abilities Consists Of

1. Intelligence tests

A standardized test used to establish an intelligence level rating by measuring

a subject's ability to form concepts,solve problems, acquire information, reason, and

perform other intellectual operations

2. Aptitude tests

Aptitude tests are those tests that measure specific mental abilities such as

inductive and deductive reasoning, verbal comprehension.

 Tests of Physical Abilities

Tests that measure physical abilities of a candidate such as static strength, body

coordination and stamina are physical. Job related to protectors and deliverers go through

this type of test.

BOK recruits candidates in three cadres:

i. Probationary Officers

ii. Management Trainees

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 iii. Contractual Appointments

Contractual arrangements are made with persons possessing technical knowledge

and expertise related to specific departments like Treasury department, foreign exchange

and information technology etc. The persons hired through these contractual

arrangements are usually appointed at higher posts.

Prerequisites for Probationary Officers

i. The candidates should be Pakistani citizen.

ii. The candidates should be under 25 years of age.

iii. The candidate should be a graduate.

The candidates fill out specific application form. After screening the applications

only selected candidates are called for test which is designed to test the analytical and the

general knowledge skills of the candidates.

The candidate undergoes an interview after passing the test. After passing the

interview the candidates are referred for medical test.

 Final Selection

After completion of all process the best candidates are selected by selection board

finally. The candidates who are selected are appointment as probationary officer, after

signing the following bonds.

i. Banks secrecy bond.

ii. Banks security bond.

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 iii. Service agreement bond.

 Orientation

Orientation of all selected employees is did after final selection and before training. The

basic information about the BOK is provided to new employees. The basic content of

successful orientation is:

o Information on employee benefit.

o Personnel policies.

o The daily routine.

o Company organization and operation.

o Safety measure and regulation

3.2.2 Methods of Internal Recruitment of BOK

Among the channels available for internal recruitment the most important ones

are:

 Job Posting

Job posting is a recognized training in many organizations, especially for filling

job up to the lower level. The posting of the job are actually done. More over the

appointing authority is with the board. But you may get to the other region or the head

office but the appointment on the fresh job. But the posting in region can be done, so the

above possibility only limit to the region so the chances through date internal recruitment

is very low.

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 Employee Referrals

The referrals of new job candidates by present employees is major source of new

hires at many levels, including professional and management staff level of the BOK. It is

an internal recruitment method, since internal rather than external sources are used to

attract candidate. The logic behind employee referrals is that: it take one to know one

 Internees

A chance is given to the new internee to work in practical environment with

employees to know the study practically. But there are different types of internship at the

BOK. An internship of two months is given to internee or student which is mostly

without financial aid.

3.3 Employee Orientation

Giving instructions to the employee about the job. Telling him about his duty and

the rules regulations of the organization which should be followed. You nudge a little

here, inspire a little here and provide a role model. Your primary influence is the

environment you create.

3.3.1 Orientation Definition

“Orientation involves the introduction of fresh employees to the organization, its

functions, tasks and people”.

3.2.2 Objectives

i. Increase productivity.

ii. Decrease the turnover ratio.

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 iii. Reduce the time for learning new tasks.

iv. Bring understanding among employees.

3.3.3 Methodology

The Bank of Khyber gives exact information to the entrance in the three main

areas:

i. Material on company standards, expectation norms tradition and policies.

ii. Material on social behavior such as improves conduct, the work

environment and getting to know associated workers

iii. Material on the technical aspect of the job.

3.4 Training and Development

3.4.1 Training

“The process of teaching new employees the basic skills they need to perform

their job accurately”

Training is the acquiring of new technology, which gives employees new skills to

perform their present job more efficiently. Training is also required to enable the bank to

offer competitive services to its clients. Training also helps in developing qualities in

human resources that will enable them to be more productive.

Objectives

Increase bank’s productivity by:

 Maintaining performance of employees.

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  Increasing adaptability and flexibility of each employee.

 Reducing the employee turnover rate of employee.

 Provide vehicle for institutional growth through Manpower

Development.

 Aid institutional strengthening by building professional competence.

 Faster uniformity in practice and procedure.

 Improve standards of customer service.

 Develop a common corporate culture.

 Reduce the gap between standard/desired performance and actual

performance.

Purpose

The main aim of training is to finish performance efficiencies, whether current or

anticipating. Further, BOK’s training plan is also very important because ever-changing

banking sector demand flexibility and adoptability in the employees.

Human Resource Training and Development Division

It remains imperious for the human resource development of the bank not only

provide educated and trained manpower so as to enable them to handle their job more

professionally and efficiently in all area of the banking but also develop talent and add

value to staff potential to enhance output, improve profitability. With the growth of the

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BOK, the need for training both for emerging new issues, as well as strengthening of

basic competencies begins to be addressed.

Phases of Training and Development

Training and development of the bank of Khyber is designed in three phases:

i. Assessment phases

ii. Implementation phase

iii. Evaluation phase

Assessment of Training Needs

Bank of Khyber uses two methods to assess the training needs of the employees.

First, the head office of the BOK get invitation from different training institutes regarding

different courses, work shop and seminar; where after these are communicated to the

concerned branches, department and division for their input. Accordingly relevant staff is

selected against the concerned courses.

Secondly, to assess the T&D need of each employee, a questionnaire is designed

comprising of two parts: section-1 to be completed by employee (basic information) and

section-2 by the controlling officer. Section 2 plays the major role and determining the

training needs of an employee. Compilation of this section involved the following steps:

Development of Board Competency Categories

Critical skills that employee at a given level in the bank need to be more effective and

efficient, for example: general banking, advances, foreign exchange, management skills,

computer literacy, English language proficiency.

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 i. Development of Specific Competencies

Once broad category is selected the next step is to more define each and develop a

list of specific competencies..

i. Development of Measuring Scale

A scale ranging from 1 to 5: (1) being least training required and (5) being

training required to a large extant.

ii. Development of open-ended questions

Two open-ended questions are designed to determine the employee’s growth;

(career wise and profession wise).

Implementation

Successful implementation of training and development programs depends on

selecting the right program for the right people under the right condition. The first phase

assessment identifies the right people and the right program and several other training

and development consideration that help in making the right conditions.

The implementation phase involves the actual delivery of training. This require

resolving issue such as determining course content, scheduling courses, assigning

instructor, choosing training method, media and venue. The following ideas are

considered:

a. Curriculum Committee

A curriculum committee is set up which will be responsible for the approval of

course schedule and course content and serve the advisory body for training.

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 b. Specialized Training

The employees inter specialized stream or career paths. They are than being

imparted specialized training in their relevant field to become specialist in that field.

Thus training program is tailored to provide the required specialist training.

c. Banking Diploma Exam

The personnel department offers some assistant with the DAIBP exams, at the

repeated request of the employees. It is planned, that an information packet will be

prepared and distributed to all interested. Books and correspondence courses.

d. Teaching Methods

Teaching methods are changed from Classroom Lecture style to a more

participatory Workshop Approach. Here classroom training and OJT will be carried out.

Evaluation

Once the training program is implemented the concerned manager checks whether

the training course has affected the performance of that employee in that particular area.

An evaluation form evaluates any training program undertaken. Evaluation

techniques used are the feedback surveys of trainees, tests and results are mirrored

through customer comments, external audits and comments of the employee’s immediate

supervisor.

Training methods

The bank in order to increase the capabilities of the staff in present dynamic

environment employs two methods of training:

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On-The-Job Training

“It is a type of training in which an experienced employee adopts a new employee

to teach him or her how to perform job duties”

On-the-job training means having a person learn the job by actually doing it

practically.On-the-job training is provided to every employee, from mailroom clerk to

company’s president, when he or she joins the firm.

Off-The-Job Training-Techniques

There are also many off-the-job techniques for training and development

managers. The managers get training relevant to their jobs and then they apply it on their

job to be more efficient and effective.

Seminars

The bank offers traditionally management development seminars and conferences.

It provide courses in area ranging from accounting and control to assertiveness training,

basic financial skills, project management, purchasing management and total quality

management.

Academic Internships

The bank also provides internships to fresh graduates. It is a sort of student’s

contract with a senior supervisor of the bank to help him/her learn different skills and

knowledge regarding banking system.

3.4.2 Employee Development at the Bank of Khyber

Definition of Employee Development

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 “Development represents those activities that prepare an employee for future

responsibilities.”

Development is training people to acquire new horizons and technologies. It

enables leaders to guide their organizations onto new expectations by being proactive

rather than reactive. It enables workers to create better products, faster services and more

competitive organizations. It is learning for the growth of the individual but not related to

a specific present or future job.

Employee Developing Method

The Bank of Khyber besides arranging training sessions has started a sponsorship

program for employees of the bank since 1999. Selection is made on the basis of merit

among those candidates who are eligible.

The bank encourages employees to give Banking Diploma Examinations and gave

promotions and other rewards to the employees.

3.5 Employee Compensation and Benefit

At BOK, the compensation package provided to the employees can be divided

into two categories. One comprises of the sales personnel who are compensated on their

ability to meet their targets. Second is compensation the managers who are responsible

for the overall functions of the organization.

 Managerial Compensation

The way the organization pays its top management plays an important role in

motivation of the critical performance needed to run it effectively. Effective total

36
compensation packages provide the retention tool necessary to keep key individuals on

board, while providing these executives with compensation that has long term growth

potential with favorable benefits.

3.5.1 Types of Compensation and Benefits in BOK

BOK focuses to give reward to all those employees who are talented. They give

salary regularly to ensure that the reward package remains competitive in the market

place. They encourage continuous discussion and regularly encourage review of

employees performance. This provides feed back to the staff about how they are doing.

The BOK takes care of compensation objective while making compensation plan

for the organization. The compensation plan of the organization is divided into two types

i.e. direct or financial compensation and indirect or Non-financial Compensation.

a. Direct Financial Compensation:

Compensation which is given directly in the form of cash to the employees. The

BOK gives direct compensation in form of:

 Salaries.

 Bonus.

 Incentives.

 Provident fund.

 Earned leaves.

 Loans and advances.

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  Pensions.

b. Indirect Compensations

Compensation which can be received indirectly through quality services and

benefits. Indirect compensations are related to the non-monetary. The HRD section

compensates the employees of BOK in the following non-financial compensations.

 Staff Medical

 Leaves

 Group insurance

 Application letter

 Exposure trips and trainings

 Safety and health benefits

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Result

The result I conducted from the questionnaire is that the training department of the BOK
is well developed but still some improvements are required for more competitive edge.
85% of employees are satisfied from the training and development of the Bank of
Khyber.The employees need training on time when they needed. The newly recruited
employees are trained in diverse areas. The trainees need proper time from the instructors
for giving good result after training session. After over all analysis of BOK I concluded
that the BOK is good for doing job and loans.

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 CHAPTER-4

SWOT ANALYSIS

SWOT analysis is conducted by the organization to assess the changes in their

internal and external environment. Strengths and weaknesses are serving as an indicator

of internal fluctuations while opportunities and threats show the external fluctuations in

market.

4.1 INTERNAL ENVIROMENT

4.1.1 STRENGTHS

It can be define as any activity the organization has command over or any unique

resources that it has but do not possessed by the competitors…

 A well-defined recruitment and selection policy.

 The process is carried out with the help of institute of Banking of Pakistan to hire

competent work force.

 The criterion developed by bank is compatible in the market and approved by the

Board of directors.

 Newly recruited candidates are trained in diverse areas of banking and

management, including on the job training and other courses outside the Bank in

well-reputed institutes.

 The Banks enjoy high competent, experienced and disciplined staff.

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  In the history of Pakistan BOK is the first bank to start its Islamic Banking

operations.

 The best-developing bank in Pakistan with 29 branches throughout the country.

 The bank has product innovation skills and resources.

 Largest customers base in the country.

 In less time BOK has more branches and therefore has easy access to more

potential customers than any other bank.

 BOK has the ability to face pressure of competition and has several times come

with attractive offer schemes and more saving for customers from time to time.

 Bank’s management has the motivation to make it best bank of the country.

 BOK is equipped with the modern technology in most of the branches.

4.1.2 WEAKNESSES

A weakness is something that bank do poorly or not developed as compare to the

other banks in the country.

 The activities the organization does not do well or resources it needs but do not

possesses refer to the weaknesses of that organization.

 BOK is a government bank therefore the government get involve in hiring new

employees. The unwanted government interference, hamper the banks good well

positions and profitability.

 Lack of coordination during recruitment process among the managers.

41
  The recruitment process is quite long which discourages the candidates to apply

for the job.

 Sometimes the bank goes for external recruitment without considering the

promotion of the existing employees. This discourages the employee of the bank.

 BOK has a large product line at present time but offers very little to the consumer

due to lack of staff.

 Marketing skills of the bank are good but they have little presence at different

media.

 Facing problem of internal unionism and favoritism.

 Internal environment do not presents good image of the bank in most of the

branches.

 Different levels of management have communication gap in between them.

 Lack of transparent system of recruitment and selection.

 Lack of sound corporate culture.

 Heavy load of bad debts.

4.2 EXTERNAL ENVIRONMENT

There are various threats and opportunities for an organization in the external

environment. A threat is reasonably probable event which, if occurs, would produce

significant damage to the organization.

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4.2.1 OPPORTUNITIES

 Many established business institutions produces a good sort of qualified and

competent business professional. So, the organization under hire more qualified

people from market.

 The BOK in addition the newspaper should use other advertising media such as

magazines, direct mail, radio and television and even billboard to attract

candidate.

 The bank is required to avail the opportunity of recruitment agencies. To achieve

best result from this channel, the bank should cultivate a small number of firms

and truly describe the characteristics (for example education, training, experience)

of candidate needed, the fee structure and the method of dissolving this disputes.

 Being a provincial bank it should capitalize on the opportunity of gaining more

provincial support.

 The BOK is required to update its current recruitment and selection process.

 The bank should plan to attract the business community by opening new branch in

Deans Trade Center.

 The bank should also use the modern techniques of banking to retain the old

employees and to attract the fresh recruits.

 Offer the existing products to its appreciated customers.

 Increasing the ATMs in every province.

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  Increasing credit facilities to lower income groups, thus reducing the risk of loss

and also improving the image of the bank.

4.2.2 THREATS

 The other organizations (Bank of Punjab, Meezan Bank, and Bank Alfalah) of

similar nature are offering more salaries and benefit packages to their employees.

So, this is a threat to the bank that their current employees may leave it.

 Other organizations of similar nature are using better and recent HR techniques,

so they have got an edge over BOK to facilitate their employees whenever they

need. It can be a serious threat to the Bank of Khyber.

 Competitors’ effective recruitment plans and policies can attract more capable and

competent candidates. They can be a serious threat to the Bank.

 Provincial government interference in policies of the bank can affect the

efficiency and performance of the Bank.

 Due to the technological growth in banking sector the BOK should also adopt

new methods and techniques of modern recruitment and selection.

 Increasing number of foreign banks in the country.

 Global technological advancement.

 Uncertainties of the investors.

 As under developed economy.

 High rate of turnover.

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 CHAPTER-5

FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Findings

The following findings are made after the analysis and interpretation of the

current employee orientation, training and development system of the Bank:

 New employees are given formal orientation, which is mostly conducted by the

Human Resource Department, immediate supervisors of the employees and IBP.

The employees are given only a lecture regarding the Bank’s background and

human resource policies in the orientation process.

 The training need assessment system of the bank is more subjective in nature and

does not identify the needs and requirements of the employees more objectively.

 The employees are given written material in the training program to practice.

Sometimes no opportunity is given to the trainees to practice what they have

learnt in the training session.

 The employees occasionally apply on their jobs apply on their jobs what they had

learnt in training. When the employee fails to improve his/her skills, knowledge

and attitude after training then in most of the cases the bank neglects the

performance of the employees.

 The training programs are given no weightage in the performance appraisals

therefore it discourages the employees who have been through training.

45
5.2 Conclusion

It is observed that the BOK is a good institution have a pure realistic environment

and functions of the bank run according to this environment but the changing

environment demands for a change which is unique in nature. No doubt that the Bank

of Khyber is one of the successful banks in K.P.K but still some alternatives are

required for a pace of change. Also it is concluded from the questionnaire that the

training department of BOK is well developed and the trainees are satisfied from the

training and their outcome after training session is improved. 80% employees of the

bank are fully satisfied and the rest have problems in training, salaries, promotion and

bonuses which need improvements for better performance.Considering all these

things and to meet the future needs, the bank must shift its attitude of a specialized

financial institution. It has the largest market for improvement as it has branches all

over the country’s rural and urban areas. So it has the best access to the public capital.

46
5.3 Recommendations

 BOK is required to consider the training programs being attended by the

employees in their performance appraisals. As the existing performance appraisal

does not contain any weightage given to the training programs.

 The Bank should try to establish its own training institute. This will save the costs

of the bank. Moreover more employees will be able to get trained in its training

institute.

 A curriculum committee shall be established that meet from time to time to

review the curriculum and materials of training session.

 Training department of the Bank is required to create a library of material by

designing, writing some, obtaining from the outside sources and adapting yet

other materials to the BOK environment and culture.

 The trainers are required to each employees the practical side of their jobs. They

should give them an opportunity to practice what they have learnt in the training

session.

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