Final Project for HRMFinal Project for HRM

Comparison of HR Comparison of HR Policies of Askari Policies of Askari

commercial Bank and commercial Bank and National Bank of National Bank of

PakistanPakistan

Group Members:Group Members:

Madiha EhsanRabia Bashir

Sehrish MahmoodTubbassum Shamoon

Askari Commercial Askari Commercial BankBank

Introduction• incorporated in Pakistan on October

09, 1991• ACBL commenced its business

operations in 1992 as a public limited company.

• It has expanded into nation wide presence of more than 1600 employees and has lowest turnover in Pakistani banking sector.

ContdContd……

• ACBL is principally engaged in the business of banking as defined in the banking companies’ ordinance 1962. As a December 31, 2002 the bank has total assets of PKR 70.313 billion with over 250,000 banking customers.

• ACBL has a correspondent bank network in more than 95 countries with about 167 banks.

Contd…Contd…

• ACBL developed a geographically diversified assets base instead of concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore where most other banks have their operational banks have their operational Head Office.

Mission StatementMission Statement• To be leading private sector bank in

Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to all our stakeholders, and contributing to society.

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Services provided by Services provided by ACBLACBL

• Askari Mortgage Finance

• Askari Business Finance

• Askari Personal Finance Askari Travelers Check

• Askari Master Card

• Askari Banks’ Cash Management Service

• Askari Car Leasing

• Touch And Pay (Utility Bills)

HRM POLICIES HRM POLICIES FOLLOWED IN ASKARI FOLLOWED IN ASKARI

BANK BANK

1. PLANNING:

HR Department is responsible for an effective HR planning regarding demand and supply of employees and forecasting for these practices.

a. Forecasting Employee a. Forecasting Employee Demand:-Demand:-

• Opening a New Branch

• Setting Up New Technology

• Changes in customer demands

• New Services

b. Forecasting Employee Supply:-b. Forecasting Employee Supply:-

• Transfers

• Internal Movements

• Rotations

• Overtimes

• Temporary / Contractual

c. Employee Shortage:c. Employee Shortage:

• Management Trainee Officers. Recruited once in a year)

• Junior Officers. (Recruited according to the need)

2. RECRUITMENT2. RECRUITMENT

ACBL recruits both fresh and

experienced persons on regular basis to

support its growth strategy. For this

ACBL uses following internal and

external recruitment sources.

• Newspaper

• Website

• Direct Applicants

3.SELECTION3.SELECTION

After the recruitment the selection of the most reliable and efficient persons is done at ACBL under the supervision of HR personals.

The selection process at ACBL isSequenced as follows:• Entry Level Test • First Interview• Second Interview• Third Interview• Medical Test

4. Training and Development4. Training and Development

Training and development has two parts:

a. Training

b. DevelopmentThe high leverage training is done in

two main areas:

• Banking ( General Banking, Credit Division, Foreign trade)

• Personality Development

a. TRAINING AT ACBLa. TRAINING AT ACBLACBL is managing its training needs

from a single Training Centre, so it is feasible to

elaborate some facts about the Training before breaking the training

methodology.

The Training centre was established in 1999, since then it is managing the

training needs of Punjab, NWFP and AJK

region.

Contd…Contd…

HR and Training Wing make all strategies side by side .The Training Wing implements these strategies and the result of implementation is reported to HRD ,which is further reported to the President. In the Training wing ,currently Mr.Riaz Bungush (VP Training) and Mir Shahid Iqbal (OG-1 Officer) are authorized trainers/instructors.

a.1. Areas of traininga.1. Areas of training The training at ACBL is done at two broad

,which are further categorized, these are;

• Banking:Banking:

• General Banking.

– Credit Division

– Foreign Trade

• Personality Development:Personality Development:

• Management .( Leadership & Controlling etc)

• Marketing and SellingMarketing and Selling

• Behavior Modeling. Personality Development)Behavior Modeling. Personality Development)

• Communication Skills etc.Communication Skills etc.

a.2. Who needs training

The new hires always need training. There are two types of new hires;

1. Fresh Hires:

1-a) Management Trainee Officers (MTOs)

1-b) Junior Officers (JOs)

2. Experienced Hires:

3. Current Employees:3. Current Employees:

a.3. TRAINING METHODS OF a.3. TRAINING METHODS OF ACBLACBL

Among the various training methods , ACBL is using the following methods to train its employees.

a.3.1 Class Room Instructionsa.3.2 On Job Training OJT

a.3.3 Degree & Certifications

a.3.1. Class Room Instructions:a.3.1. Class Room Instructions:

The training Wing of ACBL commonly

Uses it. JO’s have 2 weeks session of

Classroom training . MTO’s have 3

Months session of training.

Contd…Contd…

Following are the parts of classroom

Training session.

a. Business Games

b. Case Studies

c. Research Topics

d. Written and Oral Assignments

e. Role Plays

a.3.2. On Job Training OJTa.3.2. On Job Training OJT

It is the second most commonly used method of training in ACBL .Only MTOs have an OJT session .Job Rotation is the main ingredient of OJT.

a.3.3. Degree & Certificationsa.3.3. Degree & Certifications

Other than full time degrees and certificates, ACBL has more than 50 Refresher Courses for current employees to enhance their skills.• Team Learning• Behavior Modeling

EVALUATION OF TRAINEESEVALUATION OF TRAINEES

The Training Wing evaluates each

trainee in following ways;

• By Pore-test – Post –test

• By testing the employees during the session

• ACBL conducts quizzes and evaluates the written & oral assignments.

REWARDS SYSTEMREWARDS SYSTEM

ACBL has a reward system for the

Trainee who perform better during the

Training session, which are in shape of ;

• Appreciation letters

• Shields Etc

b. EMPLOYEE b. EMPLOYEE DEVELOPMENT AT ACBLDEVELOPMENT AT ACBL

Regarding employee development

following approaches are followed by ACBL;

b.1 On Job Degrees and Certifications

b.2 Sabbaticals for Training

b.3 Performance Appraisal

b.4 Employee Assistant Program

b.1 On Job Degrees and b.1 On Job Degrees and CertificationsCertifications

At ACBL every employee is given an opportunity to do extra degrees and certifications in his field or where he/she is lacking skills e.g. MBA-Executive and others.

b.2 Sabbaticals For Trainingb.2 Sabbaticals For Training

For refresher courses , which are usually not longer than 7 to 10 days, sabbaticals are given to the employees. This motivates the employees to take these courses whenever an opportunity is there.

b.3 Performance appraisalb.3 Performance appraisal

• The most important source of employee development which results in the promotions , rightsizing, increase in salary , perks and benefits is done in ACBL with the help of 360 degree feedback

b.4 Employee Assistance b.4 Employee Assistance Program:Program:

All employee at ACBL are given the opportunity to get themselves proper training in their desired areas, Employees do an informal counseling with their supervisors for improvement in their work and also in career development.

About The National Bank Of About The National Bank Of Pakistan Pakistan

National Bank of Pakistan maintains its

position as Pakistan’s premier bank

determined to set higher standards of

achievements.

RESOURCESRESOURCESINTERNAL RESOURCES

• POSITION FROM WITHIN• JOB POSTING• REFERRALS

External resources

• High schools and vocational schools• Collages and universities• Competitors and other firms• Older people• Military employees• Self-employed workers

TRAINNING NEED TRAINNING NEED ASSESMENTASSESMENT

• SELF ASSESMENT

• COMPANY RECORD

• CUSTOMER COMPLAINS

• NEW TECHNOLOGY

• INTERVIEW WITH MANAGER

• EMPLOYEE GRIEVANCES

NATIONAL BANK OF PAKISTAN NATIONAL BANK OF PAKISTAN TRAINING PROGRAMTRAINING PROGRAM

• FIRST 10 YEARS TRAINED ITS JUNIOR AS WELL CLERICAL STAFF

• ESTABLISHED “STAFF COLLEGE” IN KARACHI, LAHORE, ISLAMABAD, PESHAWAR.

• 6 TO 8 MONTH TRRAING COURSE

• 25 LEARNERS IN EACH CLASS

Performance management of Performance management of national bank of Pakistannational bank of Pakistan

• Standards of performance are based on job not the person doing job

• They are achievable

• Understandable by both supervisors and subordinates specific and measurable

• Should be time-oriented

• Always in written form

• Allow for revision and change (flexibility)

• Should be agreed upon by supervisor and employees

Compensation managementCompensation management• Base pay

• Commission • Overtime pay

• Bonus, profit sharing, merit pay

• Travel/meal/housing allowances

• Benefits included are ; dental, insurance, medical vacation leave, retirement taxes.

Steps in selection processSteps in selection process

• Written test for four subjects English, computer, general knowledge, mathematics that carries 250.

• Qualified candidates are called for panel interview

• Undergo for medical check-up prescribe by doctor

• Appointment letters are sent to selected candidates

• Sent to pre-service training for 9 months

Comparative study of HR Comparative study of HR policies policies

NBPNBPVSVS

ACBLACBL

Planing & forecastingPlaning & forecasting

• Determine demand and supply of employees• and forecasting through arranging transfers, • internal movements,• rotations, • overtimes, • contractual & permanent hiring, • and fulfilling the shortages of employee. Askari

Bank does this with the help of HRD.

Continue…..Continue…..

• The HR department in NBP is responsible for managing the most important asset of the company and the NBP performs the function of planning through HRP by first

• determining the objectives, • then by defining skills to meet those

objectives, determining additional human resource requirements,

• and finally developing actions to meet the anticipated HR needs by using

• zero-base forecasting,• Bottom-up approach and • by using mathematical tools

RECRUITMENT & SELECTIONRECRUITMENT & SELECTION

• NBP bank had been recruiting the best in class individuals from the industry and has started inducing Management Trainee Officers to mix youth with experience. The process of recruitment in National Bank of Pakistan consists of advertisements through

• electronic & • printing media, • inspection of application,• short listing, • issuance of call letter, • test, • listing on the basis of test,• call letters for interviews,• final short listing, • offer letter joining training and finally the posting.

Continue……Continue……

• ACBL recruits both fresh and experienced persons on regular basis to support its growth strategy. Apart from this ACBL recruits in both categories (MTO’S & JO) .For this purpose ACBL uses following internal and external recruitment sources.

• Newspaper• Website• Direct applicants• After the recruitment the selection of most reliable

and efficient persons is done at ACBL under the supervision of HR personals. The selection process at ACBL is sequenced as

• ENTRY level test• First interview• Second interview• Third interview• Medical test

TRAINING & DEVELOPMENTTRAINING & DEVELOPMENT

• Training & development in NBP is done in following main areas

• Management skills• Marketing & sales skills• Customer care skills• Performance appraisal skills• Banking operations& regulatory compliance• Credit administration/documentation• Credit marketing and credit proposals• Trade finance operations• Risk management• Audit compliance

Continue…..Continue…..

• Training & development in ACBL is done in the following two areas conducted by the Training Wing in alliance with HR.

• Banking ( general banking, credit division, Foreign trade)

• Personality development

Regarding employee Regarding employee development ,following approaches development ,following approaches

are followed by ACBLare followed by ACBL

• On Job Degrees and Certifications

• Sabbaticals for Training

• Performance Appraisal

• Employee Assistant Program

• Interpersonal Relationship Development

PERFORMANCE MANAGEMENT:PERFORMANCE MANAGEMENT:

• HRD section always takes this opportunity to evaluate the performance of the employees.

• The appraisal system also helps the management of the NBP to help the managers with placement. Pay, and other HR decisions.

• The HRD section of the NBP has set 8 standards of measuring performance.

• Standards of performance are based on the job and not on the person doing the job.

• Standards of performance are achievable.• Standards of performance are understood by the

employee performing the job• Standards of performance are agreed upon by the

employees and the supervisor.• Standards of performance are as specific and

measurable as possible• Standards of performance should be time-oriented• Standards of performance are always in writing• Standards of performance allow for revision and

change

CONTINUE…CONTINUE…

• ACBL has performance appraisel system a bit different than that of NBP.

• ACBL has a reward system for the trainee who perform better during the training session, which are in shape of ;

• Appreciation letters• Shields Etc• At ACBL every employee is given an opportunity

to do extra degrees and certifications in his field or where he/she is lacking skills.

• e-g. MBA-Executive and others.

EMPLOYEE COMPENSATION & EMPLOYEE COMPENSATION & REWARDS:REWARDS:

• In NBP Different types of compensation include;

• Base pay• Commissions• Overtime pay• Bonuses, Profit sharing, Merit Pay• Stock options• Travel/Meal/Housing allowance• Benefits including :dental , insurance, medical,

vacation, leaves, retirement, taxes

Continue….Continue….

• ACBL provides its employees some additional benefits along with salary based on good performance and tenure of service and experience of employees.

• Allowances including conveyance allowance • Increase in salary• Bonuses• Besides a competitive financial package,• They offer excellent working conditions, • Job satisfaction,• superior leadership, • and a conductive experience with promotions

Thank You Thank You