1.

OBJECTIVES OF STUDYING THE ORGANIZATION

Internship program provides a chance to practically inspect the working of an organization in relation to theoretical study. For internship purpose, I select to study the National Bank of Pakistan, Regional Office Multan. My

specialization is in HRM therefore worked mostly in HRM department so that I could learn the practical knowledge of HRM functions. In this sense I want to learn these things:a) b) c) d) Gain practical knowledge of HR department Study how much policies are applying in the organization Improve my skills Learn the methods how can we apply the theory of HRM in the

organization e) f) g) h) i) j) Learn those factors which are the cause of changing strategies Observe the results when we do not apply the theory of HRM I want to learn the effect of good coordination between workers I want to learn the result of good planning I want to also learn how we prepare the performance report. I want to learn the method of training and I want to see the

results of good training. I want to learn those strategies which make the work easy and which are helpful for achieving the goals of organization.

Main objectives of my study were to see the following areas:1. Working Environment of NBP

2. HR Department of NBP, Regional Office, Multan.

3. Functions of HR Department i.e.

MAJOR FUNCTIONS
Following are the functions of HR Management and Administration department, National Bank of Pakistan, Regional office Multan. 1. Human Resource Planning Human Resource Planning is conducted by the HR department. They assess the existing number and nature of staff and then place / post them at needy branches according to the requirement of that branch. For example, if the load on cash counter is increasing, one new cashier will be posted at the Branch. 2. Recruitment of Staff Another important function of HR department is recruitment of staff as per availability of vacancies. At NBP, recruitment of permanent staff is centralized and all recruitments are made by their Head Officer Karachi. However, in near past limited authority has been given to regional offices to hire the services of outsourced staff i.e staff provided by the employment companies. This type of recruitment is being made in following areas: a. b. c. Security Guards Janitorial Services Sale & Marketing staff for retail products.

3. Transfer of Employees

The regional office Multan controls fifty five (55) branches. All transfer and posting of employees among these branches is made by HR department keeping in view the staff requirement at different branches.

4. Job Rotation Function of Job rotation is also performed by regional office Multan. Normally, when an employee completes three years at a particular seat, he rotates to another seat. This rotation is very important for internal control, to prevent fraud and forgery and to enhance the employees skills for different duties. 5. Human Resource Development & Training H.R Department analyzes the day to day requirement of SBP regulation for different Banking activities, and plans for training and development of staff. This training may also be based upon introduction of new Banking produces and competition with rival Banks. 6. Performance Appraisal H.R Department also performs the function of performance appraisal of employees on yearly basis. At the close of every year annual confidential report (ACR) of each and every employee is written by HR department. This ACR contains subjective and objective evaluation as well as personal traits of an employee. 7. Promotion of employees NBP H R department performs the function of promotion. Normally NBP promotes its employees after every three yours on the basis of their past performance, availability of vacancies in each grade/cadre and quota approved by the Ministry of Finance, for each grade/cadre. 3

8. Lay Off Lay off function is also performed by HR department. NBP is a govt. owned organization and its employees retire at the attainment of age of 60 years. However, in 1998 and 2002 the NBP announced the Golden Hand Shake schemes and almost 5000 and 3500 employees separated from Bank services in these respective years. 9. Health & Safety H R department arranges for medical facilities to its employees. There are several hospitals on Banks panel and employees can avail medical facilities from these hospitals. Hospitals bills are being paid by HR department after proper verification. NBP extend medical facility to employees, their spouse (wife and children) as well as parents of the employee. Brother or sister or any other relation is not entitled for this medical facility. 10. Disciplinary Cases HR department deals with all disciplinary cases of employees. These disciplinary cases include: a. b. c. d. e. Fraud & Forgery Unauthorized leaves Insubordination Misconduct of finances Violation of procedure & policy

11. Retirement Benefits HR department also manages pensions and group life insurance. Pension is allowed to all employees after retirement and when the employee dies his 4

widow can avail this facility till death. Even if the widow dies, 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.

12. Personnel Information System HR department is responsible to keep and maintain complete data of each and every employees this data includes his personal data as well as professional data and being used to place right person for the right job. 13. Equal Employment Chance NBP provides equal employment chance to men & women. HR department is responsible to implement this policy, too. 14. Salary & Loan Administration HR department performs the function of disbursement of Salary and administration of Staff Loans. Salary is being disbursed in last week of the month. NBP allows house building loan, Motor car loan and computer loan to its employees. Period of house building loan is 20 years, Car loan is 10 years and computer loan is 5 years. Mark up on HBL is 3% and car/computer loan is 4%. HR department pays salaries to employees after deduction of monthly installments of loans, already availed by them.

2. INTORODUCTION TO THE ORGANIZATION

National Bank of Pakistan maintains its position as Pakistans premier Bank determined to set higher standards of achievements. It is major business partner of the Government of Pakistan with special emphasis on fostering Pakistans economics growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices.

Mission

To be recognized in the market place by Institutionalizing a merit & performance culture, Creating a powerful & distinctive brand identity, Achieving top-tier financial performance, and Adopting & living out our core values.

Core Values

We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers. Prudence to guide our business conduct. A national presence with a history of contribution to our communities.

We shall work to

Meet expectations through Market-based solutions and products. Reward entrepreneurial efforts. Create value for all stakeholders.

We aim to be people who

Care about relationships. Lead through the strength of our commitment and willingness to excel. Practice integrity, honesty and hard work. We believe that these are measures of true success.

Vision

To be the pre-eminent financial institution in Pakistan and achieve market recognition both in the quality and delivery of service as well as the range of product offering

3. OVERVIEW OF THE ORGANIZATION

National Bank of Pakistan was established on November 9, 1949 under the National Bank of Pakistan Ordinance XIX, 1949, in order to cope with the crisis conditions which were developed after trade deadlock with India and devaluation of Indian Rupee in 1949. The normal procedure of establishing a Banking company under the Companies Law was set aside and the Bank was established through the promulgation of an Ordinance due to the crisis situation that had developed with regard to financing of jut trade. Bank commenced its operations from November 20, 1949 at six important jute center in the then East Pakistan and invested its resources in financing of jute crop. The Banks Karachi and Lahore offices were subsequently opened in December 1949. Initially the Bank was established with the objective to extend credit to the agriculture sector, however, during 1950s, the Banks Ordinance was amended so that it could under take other commercial businesses / activities as well. The nature of responsibilities of Bank is different and unique from other Banks / financial institutions. The Bank acts as the agent to the State Bank of Pakistan for handling Provincial / Federal Government Receipts and Payments on their behalf.

BUSINESS VOLUME (31.12.07)

Authorized Capital Paid-up Capital Shareholders' Equity and Reserves Deposits 10,000 8,154 69.270 591,900

Advances Investments Total Assets Pre-Tax Profit After-Tax Profit

340,700 210,800 762,200

28,060

19,030

No. of Branches No. of Employees PRODUCT LINES

There are three types of product lines, which are as under:-

1,261 14,079

10

a) b) c)

Retail Products Advances Deposits

(a) RETAIL PRODUCTS

PRODUCT LINES RETAIL PRODUCTS Unprecedented Safety - Unprecedented Return Premium Aamdani Unprecedented Safety - Unprecedented Return Premium Saver President's Rozgar Scheme - Easy financing for self employment Karobar Affordable, Flexible & Convenient home financing for all Saibaan Take upto 20 Advance Salaries - Affordable Installations from 1 - 60 months Advance Salary One Card does it all - ATM plus Debit Card in one Cash Card

11

Invest with Confidence - Marginal Finance Facility Investor Advantage Meet your need for ready cash against your idle gold jewelry with no minimum limits Cash n Gold

NBP KISAN Taqat Kisan Taqat

NBP's affordable agricultural program offers you a wide range of financing Kisan Dost Knitting Links AASAN Banking Online Facility

12

(b) ADVANCES

Small finance/working capital for small enterprises. Cash Finance/working capital for medium enterprises Demand finance/Term Finance Running Finance for personal use against DSCs/SSCs Syndicate Finance/Consortium Financing

(c)

DEPOSITS

Profit & Loss Saving Account Profit and Loss Term Deposits Account NBP Plus Term Deposits Account NBP Premium Saver Account NBP Premium Amadni Certificate

13

ORGANIZATIONAL STRUCTURE

President
Commercial & Retail Banking Group Chief Corporate & Investment Banking Group Chief

Regional Business Chief

Regional Marketing Manages

Operations Group Chief Regional Compliance Chief Risk Management Group Chief

Regional Operations Chief

Branch Manager

Corporate Head North & Corporate Head South

Operations Departments of The Region

Branch Operations Manager Corporate Branches

Regional Risk Management Chief

Credit Department of The Region

Branch Credit Officers

14

4. Organizational structure of the Human Resource Management (HRM) department NBP REGIONAL OFFICE MULTAN

SEVP / Group Chief, HRM & AG, NBP Head Office Karachi

SVP / Regional HR Chief, Regional Office, Multan

PSO to Regional HR Chief

No.2 in HRM Department

Incharge Disciplin ary Cases

Incharge Staff Benefit

Incharge Staff Loan

Incharge Accounts of R.O.

Incharge Litigation & Ind. Relations

Incharge Inward / Outward Mail

15

5. HRM PROCESS IN THE ORGANIZATION

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

16

At National bank of Pakistan this process of planning is done at Head Office Karachi and Regional Offices implement all these strategies which are determined during the planning at Head Office.

FORECASTING HR REQUIREMENTS
Forecasting of HR requirements, at NBP is made on the following parameters:-

Staffing Level

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

There are following categories of working staff in NBP as mentioned below:o o o o Executives Officers Clerical staff 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 Available employees Net requirements 125 100 _____ __25_

17

3.

Action Plans Staffing authorizations

The Regional office is authorize 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 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

18

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

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

19

Forecasting Model Current Strength Losses / Withdrawal Back-up In Future Requirements Surplus / Shortage

Plans of NBP 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

Sources of candidates
a) b) Internal sources 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 20

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 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

21

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

Orientation Orientation is particularly important for familiarization visual, presentation, briefing about the NBP policy, procedures and benefits.

Placement

After completion of recruitment process, the employees are posted at needy positions / branches. Training

22

According

to

job

descriptions

and

specifications

training

programmes are arranged in NBP. Performance Appraisal

Annual Performance Appraisal is made after 31st Dec of every year. Its not kept a confidential. All points discussed with the Appraisee by the Appraiseer. Following are the Parts & Sections contained in National Bank of Pakistan in Annual Performance Appraisal. Section-I Name Fathers Name Designation Grade Basic Pay Regular / Contractual Current Posting Reporting to Date of Joining NBP Date of Last Promotion Academic Qualification Professional Qualifications Status of Disciplinary actions, if any (To be filled by the concerned Branch / Region)

Section-II

(To be filled by the Appraisee)

Mention most important achievements during the year Section-III (To be filled by the Appraisee) 23

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 1. 2. 3. 4. 5. Deposit Advances Profit Reduction of Bad debts Reduction of Complaints Score (1 to 5)

Total score / No. of objectives x 0.7 (Score of Section-I)

Section-II Behavioral Skills 1. 2. 3. 4. 5. 6. 7. 8. 9. Job Knowledge Communication Skills Attitude, Behaviour & Response to Controlling Offices Initiative Attendance & Punctuality Commitment to Job & Organization Team Work Analytical Ability Development of subordinates 24

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

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. NBP allows its employees to apply for the suitable positions within the organization for enhancement of proper status.

b) External sources

25

External sources i.e through solicited methods MTOs (Management Trainee Officers) 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 26

2. 3.

Implementation Evaluation

Firstly, focus what is to be learned that is required as per job specification. 1. 2. 3. Continuous cycle of organization analysis Operations analysis Analysis of the training needs of employees.

In evaluating training programmers we measure change in terms of four categories. 1. 2. 3. 4. Reaction Learning Behaviour Results

Evaluation is involved in :1. 2. establishing indicators of success in training as well as on the job. 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. 27

2.

Operations Analysis Focuses to identify the content of training what an employee must do in order to perform competently.

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 behaviour will provide relevant information at this level. So, the important question is that whether training produce changes in employee behaviour which will contribute to our banks goal.

Operations analysis requires a careful examination of the work to be performed after training. It involves:1. 2. A systemic collection of information that describes how work is done. Descriptions of how tasks of performance for that work can be

determined. 3. The competencies necessary for effective task performance.

28

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.

Employee Development In National Bank of Pakistan following courses are offered to the employees for development during Training Calendar that are as under:1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.3 Core Banking NBP Products & Services Consumer Banking Agriculture Finance SME Financing Commercial Finance Corporate Banking Treasury Management Credit Management Credit Administration Risk Management Foreign Exchange KYC / AML / Constituents Accounts Branch Operations Cash Management Branch Accounting Regulatory Compliance SBP Prudential Regulations, FE Regulations and other Guidelines Banking and Related Laws Corporate Governance Basel-II Audit and Compliance Islamic Banking Principles of Shariah Compliant Banking Islamic Financing System Shariah Compliant Products 29

4 4.1 4.2 4.3 5 5.1 5.2 5.3 5.4 5.5 5.6 6 6.1 6.2 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 8 8.1 8.2 8.3 8.4

Marketing, Relationship Banking & Customer Service CRM Selling Skills Customer Service / Customer Delight Leadership & Management Leadership Skills Stress and Time Management Team Building Personality and Attitude Development Human Resource Management and Development Executive Development Programme Communications Skills English Language Programme Basic / Intermediate / Advance Communications Skills Information Technology MS Office (Complete Package) MS Power Point MS Excel Advance E-mailing & MS Outlook ATM Operations BBO / VPN EBS / IBT CBR Collections Core Banking Applications Long Duration Courses Basic Training Course Branch Management Branch Operations Management Foundation Courses (for Officers G-I, II & III) 8.4.1 8.4.2 8.4.3 8.4.4 8.4.5 8.4.6 8.4.7 Operations Credit Management Risk Management Foreign Exchange Accounting Islamic Banking I.T various aspects Advance Courses (for Officers G-I, II & III)

8.5

30

8.5.1 8.5.2

Credit Management Risk Management

8.6

8.5.3 Foreign Exchange Management 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 NBP:-

1. 2. 3.

Goal Setting Measuring Accomplishment Regular Assessments of Progress

Result Oriented Rating Method

31

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:1. To agree on the major objectives i.e Deposit, Advances, Profit etc for given period of time 01 year in NBP. 2. 3. Develop plans for how & when the objectives will be accomplished. 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 1 2 Points 3 4 5

Rating Factors

32

Above Satisfactory

Unsatisfactory

Conditional

Satisfactory

Attendance & Punctuality Job Knowledge Attitude, Behaviour & Response To controlling offices / branches Personal Appearance & grooming Quality of work Commitment to job & Organization / bank / branch Communication skills

Performance Evaluation 1. 2. 3. 4. 5. 6. Immediate Supervisor Peers Subordinates Self Appraisal Customers served Computers

In NBP performance of employees is assessed by their immediate supervisors. Staff Motivation to improve performance in NBP 1. 2. 3. 4. 5. Communicate Frequently Encourage subordinates to learn about modern technologies Encourage participation Judge performance, Not Personality Avoid destructive criticism 33

Outstanding

6. 7. 8.

Set mutually agreeable goals Be specific & be an active listener Continue to communicate and Assess progress toward goal regularly

9.

Make organizational rewards contingent on performance

Performance Management requires a willingness and a commitment to focus on improving performance at the level of the individual every day.

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. iii.

To measure the extent to which goals have been accomplished. Regular assessment of progress toward goals focuses the attention and efforts of an employee.

2.

Facilitate Performance

34

Managers

who

are

committed

to

managing

for

maximum

performance recognize that one their major responsibilities is 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. 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.

35

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 Direct Payments (Salaries) Non-Financial Protection Programs

Employee involvement in decision making 36

Indirect Payments (benefits)

Effective Supervision

Recognition

Training Opportunities

Supportive company culture

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 37

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

Marriage Grant i.e Rs.50000/-

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

38

Transfers / Relocations

Layoffs Retirements Resignations

Demotions
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 NBP, 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. 39

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 Involuntary layoff 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 NBP 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, repeatly misconduct and so on. Employeeswho!remain loyal,

trustable,`mi~ated, productmve zemai~(the(asset of bank and prestige of bank.

Resignation

40

Resignation or voluntary employee turnover is allowed in NBP. If employee wishes!to"give!rewign, he must"give ong month advance / prior notice.

Retirement At NBP employees crudgoingboo retireount qfter attaining the age of"60 years.`HR eepartment also oanages(pensions and roup life insurance. Pension is allowed$to alm`gmplo{ees after retirement and wheo the e}ployee dies his widow can avail this faciloty till0death. Even if the widow kes, the daughter/son of emplyee can avail pmn{ion till she/he attain the age of majority i.e. 18 years or she/he married, whichever is happened earlier.

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 41

Working hours and overtime Holidays Vacations Seniority Adjustment of complaints and grievances Discharge of employees Management Functions Safety and Health

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.

42

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 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. 2. 3. Union Management 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.

43

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. 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

44

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 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 internship, 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 NBP; which is centralized. 45

The Head Office Karachi analyzes the staff requirement on the basis of input / feed back received from its twenty nine regions. Then it advertises the Job Opening in all leading news paper and after test / interviews, the recruitment is made by NBP.

The newly appointed employers are undergone by an intensive training of six months at NBP 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 Karachi and the Regional HR Department are supposed to implement the HR polices, in true letter and spirit. For example,

(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) 46

Purpose of my internship was to study practically the Human Resource Department of National Bank of Pakistan, Regional 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 at NBP: 1. Personal Interviewing 2. Documents (such as duty list of employee etc.) 3. Observations 4. Books / Internet

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

47

There

is

an

unnecessary

delay

in

implementation

of

new

HR

techniques/policies by the Regional Offices, because the whole system of NBP 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 Karachi. 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 NBP. For any new problem the Regional Office has to move to Head Office for seeking guidelines, which usually un-necessarily delayed the matter. 3. Political Recruitments Being the largest and government owned Bank, the NBP 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 National Bank of Pakistan is lagging behind in using the latest system and technology. The staff of NBP is doing most of the work manually. It is the era of information technology but NBP is using outdated techniques, which is not employees supportive and NBPs employees seems less skilled as compare to other Banks. 5. Excessive Work Load on employees The workload in NBP is increasing day by day, but there is shortage of staff and resultantly many times complaints arise from the customers. Employees of NBP often remain in office till 9-7, but yet unable to manage the workload. 48

6. Lack of Team Work NBP is hiring the services of young talent in the shape of Management Trainee Officer (MTO) for the last five years. There is a lack of coordination among the old employees and MTOs. Old employees considered the MTOs as threat to their jobs, which is adversely effecting the work of Bank. 7. Lack of Participative Management System The structure of NBP 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 NBP

8. CONCLUSION
No doubt the NBP 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. 49

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.

RECOMMENDATIONS
1) The NBP 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

50

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. 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 this purpose. 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 NBP can enhance the productivity of its employees. 11) NBP has a very vast network of customers. The Bank is also performing such public services which are not being dealt by other Banks. For 51

example, Government receipts and payments, Pension payments, Zakat payments and payment of salary of government employees. Branches of NBP remain over crowded due to these services. To overcome this problem the Bank should immediately increase its Human Resources. 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.

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9. REFERENCES & SOURCES USED Sr. No. 1) 2) 3) Names Contact No. 061-9200717 061-9200868 061-9200868

Mr. Asghar Ali Shah, VP/Regional HR Chief Mr. Abdul Qayyum, AVP/HR Deptt. Mr. Muhammad Kamran, OG-I/HR Deptt.

BOOKS
Managing Human Resources written by Wayne F. Cascio

Website: www.nbp.com.pk www.hrm.com.pk

ANNEXES
53

List of 55 branches
NATIONAL BANK OF PAKISTAN REGIONAL OFFICE MULTAN
SR.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 BR.CODE 314 345 349 368 374 375 402 414 417 437 463 497 542 544 550 561 563 575 585 627 BRANCH NAME MAIN BRANCH, BUREWALA MAIN BRANCH, KABIRWALA MAIN BRANCH, KHANEWAL MAIN BR.MIAN CHANNU MAIN BRANCH, MULTAN CITY BRANCH, MULTAN MAIN BRANCH, SHUJABAD MAIN BRANCH, VEHARI ABDUL HAKIM BRANCH CANTT BRANCH, MULTAN MUNCIPAL COMMITTEE MAIN BRANCH, MAILSI GULGASHAT COLONY JALALPUR PIRWALA JAHANIAN BRANCH KACHA KHUH BRANCH ISMAILABAD BRANCH, MULTAN THATTA SADIQABAD BRANCH QADIR PUR RAWAN BRANCH LAR BRANCH, MULTAN

54

21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

654 695 697 734 737 738 761 835 860 861 905 935 943 959 1312 1325 1420 1440 1461 1473 1490 1495 1527 1550 1564

ZAHEER ABAD SHAHEED BR. NAWABPUR BRANCH MITRO BRANCH DISTT.COURTS KHANEWAL BWP BRANCH VEHARI GHALLA MANDI BUREWALA GAGGOO BRANCH TIMBER MARKET MULTAN CHAK NO.12 /A.H BRANCH SHANTI NAGAR BRANCH KUKKAR HATTA BRANCH MATTITAL BRANCH, MULTAN TULAMBA BRANCH PUNJ KASSI BRANCH SARDAR PUR BRANCH FERTILIZER FACTORY MULTAN UGGUANA 95/15L SARAI SIDHU BRANCH MAKHDOM PUR PAHORAN DEHLI GATE BR.MULTAN MUMTAZABAD BRANCH, MULTAN DERA ADDA BRANCH, MULTAN HARAM GATE BRANCH, MULTAN TIBBA SULTAN PUR BRANCH BASTI JHOKE VAINCE BRANCH

55

46 47 48 49 50 51 52 53 54 55 56

1574 1602 1603 1604 1764 1801 1839 1931 1953 1995 2026

JUNGLE MARYALA BRANCH GHALLAH MANDI BR, MULTAN NAWAN SHEHAR BR. MULTAN SADDAR BAZAR BR. MULTAN CHAK 100-WB BRANCH, VEHARI CHAK 168/10R KHANEWAL TEHSIL COMPLEX MIAN CHANNU BOSAN ROAD MULTAN NISHTER ROAD BRANCH, MULTAN SHAH RUKN-E-ALAM BRANCH DRY PORT TRUST BRANCH

CORPORATE INFORMATION Board of Directors Syed Ali Raza Chairman & President M.Ayub Khan Tareen 56

Tariq Kirmani Sikandar Hayat Jamali Azam Faruque Ibrar A. Mumtaz M.Arshad Chaudhary Audit Committee Azam Faruque Chairman Ibrar A. Mumtaz Mian Kausar Hameed Ford Rhodes Sidat Hyder & Co. Chartered Accountants M. Yousuf Adil Saleem & Co. Chartered Accountants Mandviwala & Zafar Advocates & Legal Consultants NBP Building I.I. Chundrigar Road, Karachi, Pakistan. THK Associates (Pvt.) Ltd. Shares Department, Ground Floor, Modern Motors House, Beaumont Road, Karachi, Pakistan. www.nbp.com.pk

Auditors

Legal Advisors

Registered & Head Office

Registrars & Share Registration Office

Website

Senior Management
Masood Karim Shaikh Shahid Anwar Khan Dr. Asif A. Brohi SEVP & Group Chief, Corporate & Investment Banking Group SEVP & Group Chief, Credit Management Group SEVP & Group Chief, Operations Group

57

Imam Bakhsh Baloch Ziaullah Khan

SEVP & Group Chief, Audit & Inspection Group SEVP & Group Chief, Compliance Group SEVP & Group Chief, Human Resources Management &

Dr. Mirza Abrar Baig Administration Group Amer Siddiqui Muhammad Nusrat Vohra Amim Akhtar Ekhlaq Ahmed SEVP & Group Chief, Commercial & Retail Banking Group SEVP & Group Chief, Treasury Management Group EVP & PSO to the President EVP & Secretary Board of Directors

Tajammal Hussain Bokharee EVP/Divisional Head, Special Assets Management Group EVP & Divisional Head Employee Benefits, Disbursements & Mrs. Khurshid Maqsood Ali Trustee Division EVP & Group Chief, Overseas Coordination & Management Tahir Yaqoob Group Anwar Ahmed Meenai Naeem Syed Aamir Sattar Division Atif Hassan Khan Group Chief (A), Information Technology Group EVP & Divisional Head, Islamic Banking EVP & Head, Core Banking Application, PMO Financial Controller & Divisional Head, Financial Control

58