HRM Internship

8/8/2019 HRM Internship

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EVALUATION:

Completed Internship at

Internship report submitted for the final evaluation in partial

fulfillment of the requirement for the degree

Of

Masters in Business Administration

It is certified that, the internship report and the work contained in it

confirm to all the students set by the institute for the evaluation of any

such work.

1.___________________

2.___________________

3.___________________

4. __________________


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Dedication

This report is dedicated to the greatest man in the world that shows us the right path. Who

is the great patron of the mankind that is Holy Prophet Hazrat Muhammad (PBUH).

I would also like to dedicate this small effort of extract to my Parents and Teachers. They

have always been a shinning star to look upon, to give light and to show me the directions

when ever I am lost. May Allah give them more strength and long life to guide me forever,

Ameen.

ACKNOWLEDGEMENT


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Allah Almighty, who created the universe and knows whatever, is there in it, hidden or

evident and who bestowed upon me the intellectual ability and wisdom to search from its

secrets.Countless salutation to upon the Holy Prophet Muhammad (PBUH), the city of

knowledge who has guided His ummah to seek knowledge from cradle to grave. I m

lacking words to express my cordial gratitude to all staff members of National Bank of

Pakistan Rawalakot Main Branch Azad Kashmir.I m especially thankful to the following

persons for their great co-operation during my internship. Anwar Abbasi (Branch

Manager), Afzal Kahn (Operation Manager), Raheel Khursheed (Clearing in-charge) &

Also I want to express my special thanks to my faculty members CIIT wah who gave us

this opportunity. I am thankful to my fellows who supported me to complete this Report.

Nasir Arif

Table of Contents


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Sr.No.CONTENTS Page No.

1 Executive Summary 6

2 Vision & Mission 73 Introduction 84 Product Line 12

5 Awards to NBP 156 Organizational Hirarichy 168 Organizational Structure 179 HRM Process 2010 Forecast HR Requirement 20

11 Methods 2212 Recruitment & Selection 2313 Training & Development 25

14 Performance Appraisal 3215 Compansation 3516 Organization Career Management 3717 Performance Mangement 3818 SWOT Analysis 4219 Work Description 4620 Conclusion 4821 Recommendation 49


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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

Mission Statement

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 & livingout 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 peopling who

Care about relationships.

Lead through the strength of our commitment and willingness to excel.


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Practice integrity, honesty and hard work. We believe that these aremeasures of true success.

We have confidence that tomorrow we will be

Leaders in our industry.

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to the changingneeds of the internal and external environment

INTORODUCTION TO THE ORGANIZATION

National Bank of Pakistan maintains its position as Pakistans premier Bank determined toset 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.

HISTORY OF NATIONAL BANK OF PAKISTAN

The story of NBP is a part of our struggle for economics independence; non -Pakistanis,

mostly Hindus, controlled our economy. East Pakistan was spared from massive migrationbut its economy was also, being dependent on Calcutta, badly hurt. Most bankers and

business experts left Pakistan and economy life was brought to a standstill, these mostly

branches of imperial bank of India were only a partial operation with skeleton staff. It was

deciding that reserve bank of India act as the common monetary of the both countries up

to September 1948, but this arrangement not proves well. In August 1947, we were given a

first installment of Rs. 200 Million as our share leaving a balance of Rs. 550 Million but it

was not paid when asked for.

In October 1947 there was fighting in Kashmir when India refuses to give us theamount of 5 corers if we did not give up all interest in Kashmir, which we refuse. In

response reserve bank of India refuse make even an advance for ways and means despite

that India have to pay our 50 corer there was a controversy on establishment of our central

bank because we have no experience or expertise of the but it was resolved and SBP was

created, three month head of schedule of 1st July 1948 which was lost appearance of the


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Quid-I- Azam. It was a time when Pakistan was facing a lot of difficulties and conflicts

with India on various issues including the problem of Kashmir. So, in this situation, NBP

was established on 20th of November 1949 to provide finance to suitable parties. NBP

stood behind just trade, SBP stood behind NBP and the government stood behind SBP.

Speedy it was such that 6 branches came in to being at once and the doubts on our ability

to handle this situation were dispelled forever. Now as the jute board and NBP were in the

field, the foreign merchants and bankers also rushed in to get their share in the business

and consequently NBP had to lay out much less finance than it could. Mr. Ghulam Faruq

was the chairman of the jute board &Mr.Mumtaz Hussain was chairman NBP. Until June

1950, NBP remained exclusively in Jute operation; there after other commodities were also

taken-up. After that Mr.Zahid Hussain, Governor SBP assumed additional charge also as

the chairman NBPs Board of director; M.A.Muhajir became its first M.D. In 1952, NBP

replaced Imperial bank of India. Mr. Mumtaz Hasan, as acting governor of SBP negotiated

this arrangement. In 1962 when Mr. Mumtaz Hasan became M.D. (he had already served

NBP for 10 year as its chairman of government director), the number of branches had

increased from 6 to 239 and deposits from Rs.50 million to 1 hundred and 60 million,

profit from 3 million to 21 million and the staff increased from 380 to 7091, as compared

to 1949-50. In December 1966 its 600th branches was opened raising the deposits to 2.31

billion staff to 14,963.Now it has about more than 21549 employees 1537 branches and

Rs. 208283 million deposits. It is one of the largest banks of Pakistan from every

beginning and plying a very important role in the betterment of the economy of Pakistan.

It has become the higher-level organization begin run systematically by its higher-level

officers.

EVALUATION OF BANKING INSTITUTIONS

It may be said that banking in its most simple form is as old as authentic history. As early

as 2,000 BC Babylonians had developed a system of banks. In ancient Greece and Rome

the practice of system credit was widely prevalent. Traces of credit by compensation and

by transfer orders are found in Syria, Phoenicia and Egypt before the system attained full

development in Greece and Rome. In Rome the bankers were called argentarif, men sari

or collybistoe. Banks were called tabernoe argentarioe. Some of the banks carried business

on their own account and other were pointed by the government to receive the taxes. They

used to transact their business on similar lines as those of the modern bankers. People

used to settle their account with their creditors by giving cheque or draft on the bank. If

the creditor had also an account at the same bank, the account was settled by an order to


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foreign traders.They, then, started to give loan to the other person for a fix period of time

at a high rate of interest. In 1672, England banking faced great crises when charless-2

borrowed huge sum of money from these goldsmiths and later refused to pay back. Then

these goldsmiths formed a corporation in 1965, known as bank of England. By the year

1700, this bank was not only issuing notes but also conducting accounts for

customers.This was the only point stock company, which was given the monopoly of

issuing bank notes. In 1708, by act, the privilege to issue notes in England was withdrawn

from joint stock banks and confine to the private bank not more then six partners. Thus in

1918 came in to the being clearing banks of today. Although the business of banking is as

old as authentic history, banking institution have since then changed in character and

content very much. They have from few sample operation involving satisfaction

mechanism of modern banking involving the satisfaction of the community by securing

speedy application of capital slowly seeking employment and thus providing very life-

blood of commerce. The business of changing money was so lucrative that king award III

established the office of the royal exchanger for changing foreign money at a profit for a

benefit of the crown.The discovery of American brought reaches to England and gave

tremendous boost to foreign trade. These merchants now begin hold part of their riches in

cash. These transaction whoever received a big set backing 1640 when king charless-1

seized 130000 And billions left for the safe custody with the city merchants at the royal

mint. Over a period of time the goldsmith discovered that large sum of money were left in

their custody for long. Therefore they started the use of this cash to advance loan to the

other person for a fixed period of time at a considerably highly rate of interest.

ROLE OF BANKS IN ECONOMIC DEVELOPMENT OF A COUNTRY

In modern age, monetary by banking system plays a vital role in economic development of

a country. To provide financing for the accomplishment of certain economic plans

Depends upon an organized by sound banking system by a country financial institutions

plays an important role in credit provision. So, if the monetary market by banking system

of a country is well organized by sound, it will help in accelerating the process of economic

development. To encourage people to save more by then investment of these savings into

suitable areas depends upon the policy by strength of banking system. Besides be strong

banking system, monetary policy of a county also plays a vital role in development.

Although monetary policy of a country is made by the central bank, yet it depends upon

the co-operation of commercial banks. As for as a developing country like Pakistan is

concerned, it always suffer capital deficiency. Only banks can solve problem by providing


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credit in required amount. The reasons is, to motivate the people towards savings,

collection of the saved amount by then Investment of this amount, all this is the duty of

banks. By doing so, banks become an example of model investment for people.

Hence, the banking system of a country can help in.

y Development of a country.

y To make the monetary policy successful.

y Main features of monetary policy are as following.

y To achieve high level of employment.

y To stable in prices.

y To save economy from recession by inflation.

y To avoid fluctuation of interest rates

y

To improve in standard of living of people.

So the banking system of 3rd world countries is not so stable, so it very difficult to

implement monetary policy properly. As far as Pakistan is concerned, when all the

scheduled banks were nationalized in 1974, State Bank of Pakistan got a complete grip

upon banking network. Owing to this, the role of banks in economic development became

more prominent. It can be understand through following facts.

PICIC by Industrial development bank has played an important role for the development

of industrial sector and have issued long by short-term debts for necessary machinery, raw

material equipment. For the development of agriculture red sector, NBP was the first one

to be established in this regard. Then ADBP by now other commercial banks are also

providing credit for agricultural sector. These banks provide financing for domestic as well

as international trade. Have provided credit facility to small business people to promote

cottage industry.Have provided financing for house building to overcome the scarcity of

houses. HBFC has played a vital role in this regard.Have played an important role in

providing finance to Govt. especially in agricultural sector.

PRODUCT LINES

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

a) Retail Products

b) Advances

c) Deposits


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(a) RETAIL PRODUCTS

PRODUCT LINESRETAIL 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


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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

(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


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(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

RECOGNITION & AWARDS TO NBP:

On the basis of performance the NBP get the following award

Bank of the year awards for the years 2007 & 2002 by the world renownedmagazine the Banker.

One of the best bank in emerging markets by global finance.

Bank with the highest return on capital in the Asia and No. 08 in the world 2003.

Ranked among top 100 banks of Asia Euro money.

Kisan time award 2005- 2006.

The strongest bank in Pakistan-Asian Banker.

Best bank Pakistan 2005-Global Finance.

Best emerging market bank from Pakistan for the year 2006 Global finance. The Banker Magazine in its July 2007 Issue announced that NBP has the best

return on capital of any bank in Asia,

In July 2007 NBPs standalone rating were upgraded to AAA/A-one plus from

AA+/A-1+by JCR-VIS credit Rating Agency.


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ORGANIZATION HIRERCHY OF NBP

President

Board of Directors

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officer Grade I, II, III

Clerical Staff

Non Clerical Staff


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ORGANIZATIONAL STRUCTURE

President

Commercial

& Retail

Banking

Grou Chief

Regional

Business

Chief

Corporate

&

Investment

Corporate Head

North &

Corporate Head

South

CorporateBranches

Operations

Group

Chief

Risk

ManagementGroup Chief

Regional

Marketing

Regional

Operations

Chief

Branch

Manager

Regional

Compliance

Chief

Operations

Departments

ofThe Region

Branch

Operations

Manager

Regional Risk

Management

Chief

Credit

Department

ofThe Re ion

Branch

Credit

Officers


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Organizational structure of the Human Resource Management (HRM)

SEVP / Group Chief,HRM & AG, NBP Head

Office Karachi

SVP/ Regional HR Chief,Regional Office, AJKPSO to Regional

No.2 in HRMDepartment

InchargeDisciplinary Cases

InchargeStaff

Benefit

InchargeStaff Loan

InchargeAccounts of

R.O.

InchargeLitigation

& Ind.Relations

InchargeInward /OutwardMail


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HRM PROCESS IN THE ORGANIZATION

HUMAN RESOURCE PLANNING AND FORECASTING

The processes by which management ensures that it has the right personnel, who are

capable of completing those tasks that help the organization, reach its objectives. Another

par of the current assessment is the job analysis.

Human resource planning can be condensed into three steps.

1.

Assessing current human resources.2. Assessing future human resource needs.

3. Developing a program to meet future.

HRP PROCESS

Major steps in the Human resource planning process are to ascertain:-

1. Goals and plans of organization

2. Current human resources situation

3. Human resource forecast

4. Implementation programs

5. Audit and adjustment

At 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.

StaffingMix

There are following categories of working staff in NBP as mentioned below:-

o Executives


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o Officers

o Clerical staff

o Non-clerical staff

Organization and Job Design

Proposed projects for launching as per the future re quirements.

Available / projected sources

As per following method e.g.:-

Projected employees 125

Available employees 100

_____

Net requirements __25_

Action Plans

Staffing authorizations

The Regional office is authorized to hire employees by outsourced companys 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 bythe Senior Executive management of the bank regarding recruitment of permanent

staff.

However, recommendations / suggestions are taken by the Head Office from Regional

Offices time to time.

Promotion & Transfer

Normally after every 03 years Promotion / Move-over is given to the employees on the

basis of their ACRs (Annual Confidential Reports), performance reports,recommendations, seniority and so on

Organizational changes

As per the requirement of the bank, organizational changes are also taken whenever bank

management feels the changes necessary for the bank.


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EMPLOYEE RECRUITMENT AND SELECTION

Sources of candidates

a) Internal sources

b) External sources

Employee Recruitment & Selection Process

The start of the recruitment process gives the business time to reassess the nature of

peoples jobs and consider future requirements.

The recruitment and selection process will be:

1. Vacancy arises

2. Job analysis

3. Job description

4. Job specification

5.

Job advertised in appropriate media

6. Application forms and short listing

7. Interviews and selection

8. Vacancy filled Steps

Job Analysis

Job analysis is the foundation for forecasting the need for human resources.

Supply Analysis

Supply Analysis focuses on identifying organizational competencies, analyzing staff

demographics, and identifying employment trends.

Demand Analysis

Demand Analysis deals with measures of future activities and workloads, and describing

the competency set needed by the workforce of the future.


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Training and development:

Training is the process of teaching new employees the basic skills they need to perform

their jobs and development is result of that training.

For training and developing NBP follows five steps process of training and development

Needs analysis: Identify job performance skills needed, assess prospective trainees

skills, and develop objectives.

Instructional design: Produce the training program content, including workbooks,

exercises, and activities.

Validation: Presenting (trying out) the training to a small representative audience.

Implement the program: Actually training the targeted employee group.

Evaluation: Assesses the programs successes or failures.

y Task analysis:

In this area a detailed study of a job to identify the specific skills required, especially for

new employees are analyzed.


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y Performance analysis:

After analyze the main tasks required in performing jobs it is verified that there is a

performance deficiency and determining whether that deficiency should be correctedthrough training or through some other means (such as transferring the employee). If

there is found some deficiency in performing job then training is highly recommended to

recover deficiencies.

Training methods used by NBP:

y On-the-job Training

y Off-the-job Training

y Apprenticeship Training

y

Informal learning

y Effective lectures

On-the-job Training:

Having a person learn a job by actually doing the job is OJT. Methods of OJT are

Coaching or understudy

Job rotation

Special assignments Action Learning

Coaching or understudy:

It is the OJT method in which employee is coached and taught by profession that how to

do the job in order to meet NBPs goals and objectives. At managerial level the trainee

works directly with a senior manager or with the person he or she is to replace; the latter is

responsible for the trainees coaching.

It is done at all levels of job. New employees are trained through coaching and oldemployees are also trained through this method like when some new innovation is

introduced old employees are trained in order to handle that new innovation. In 2008 all

managers have been trained to operate Misys Software (Automation of service provision

and book management).


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Job Rotation:

Moving a trainee from department to department to broaden his or her experience and

identify strong and weak points. Job rotation is usually done at managerial level. NBPs

Manager Associate (MA) program is used for job rotation training.

Special Assignments:

Special assignments are also given to employees for special training. These assignments are

actually related to tasks within the branch by achieving those tasks assigned by trainer,

employee get training.

Action Learning:

Management trainees are allowed to work full-time analyzing and solving problems in

other departments. This OJT method is just for managerial level employees.

Off-the-job Training:

It is the method which is opposite to the OJT. In this method employee does not get

training at his/her work place. This method of training is only for managerial level

employees. Off-the-job training methods are

y Case study method

y

Outside seminars

Case study methods:

special case studies are given to employees which contains some dilemma about banking

sector. By solving those case study problems employee gets training to take bold and

effective decision in crucial situations.

Outside seminars:

NBP encourages its employees to participate in the seminars arranged by banking sectorsnot just in the Pakistan but also beyond the boarders. By participating in outside seminars

employee gets authentic knowledge about the new horizons of banking sector which is

useful for HBL and makes it leading bank in Pakistan


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Apprenticeship Training:

A structured process by which employees become skilled workers through a combination

of classroom instruction and on-the-job training,It is actually combination of OJT andlectures delivered to employees. It may be for both levels of managerial and fresh

employee. In this method employee is first given the lecture about his/her job and after

that implementation of lecture in practical field is observed.

Informal Learning:

The majority of what employees learn on the job they learn through informal means of

performing their jobs on a daily basis.

Effective Lectures:

Lectures about jobs are also delivered. These lectures are delivered to new employees as

well as senior level employees and managerial level too. In these lectures employees are

prepared for facing new challenges in the banking sectors and also told them how to

achieve those challenges.

Succession Planning:

It is actually management developing program. Management development is attempt to

improve current or future management performance by imparting knowledge, changing

attitudes, or increasing skills. In order to achieve management development, succession

planning is done. Succession planning is a process through which senior -level openings are

planned for and eventually filled. The main purposes of succession planning are Anticipate

management needs, Review firms management skills inventory, Create replacement charts,

Begin management development. NBPs Management Trainee (MT) program deals with

succession planning. MT is defined in the following section of Training and developing

methods.


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1Core Banking

1.1 NBP Products & Services

1.2 Consumer Banking

1.3 Agriculture Finance

1.4 SME Financing

1.5 Commercial Finance

1.6 Corporate Banking

1.7 Treasury Management

1.8 Credit Management

1.9 Credit Administration

1.10 Risk Management

1.11 Foreign Exchange

1.12 KYC / AML / Constituents Accounts

1.13 Branch Operations

1.14 Cash Management1.15 Branch Accounting

Regulatory Compliance

2 2.1 SBP Prudential Regulations, FE Regulations and other Guidelines

2.2 Banking and Related Laws

2.3 Corporate Governance

2.4 Basel-II

2.5 Audit and Compliance3 Islamic Banking

3.1 Principles of Shariah Compliant Banking

3.2 Islamic Financing System

3.3 Shariah Compliant Products


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4 Marketing, Relationship Banking & Customer Service

4.1 CRM

4.2 Selling Skills4.3 Customer Service / Customer Delight

5 Leadership &Management

5.1 Leadership Skills

5.2 Stress and Time Management

5.3 Team Building

5.4 Personality and Attitude Development

5.5 Human Resource Management and Development

5.6 Executive Development Programme6 Communications Skills

6.1 English Language Programme Basic / Intermediate / Advance

6.2 Communications Skills

7 Information Technology

7.1 MS Office (Complete Package)

7.2 MS Power Point

7.3 MS Excel Advance

7.4 E-mailing & MS Outlook

7.5 ATM Operations

7.6 BBO / VPN

7.7 EBS / IBT

7.8 CBR Collections

7.9 Core Banking Applications

8 Long Duration Courses

8.1 Basic Training Course

8.2 Branch Management

8.3 Branch Operations Management

8.4 Foundation Courses (for Officers G-I, II & III)

8.4.1 Operations

8.4.2 Credit Management


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8.4.3 Risk Management

8.4.4 Foreign Exchange

8.4.5 Accounting

8.4.6

Islamic Banking8.4.7 I.T various aspects

8.5 Advance Courses (for Officers G-I, II & III)

8.5.1 Credit Management

8.5.2 Risk Management

8.5.3 Foreign Exchange Management

8.6 Executive Development Programme (Junior, Middle, Senior levels)


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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 Appraiser. Following

are the Parts & Sections contained in National Bank of Pakistan in Annual

Performance Appraisal.

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

Name

Fathers Name

Designation

Grade

Basic Pay

Regular / Contractual

Current Posting

Reporting to

Date of Joining NBP

Date of Last Promotion

Academic Qualification

ProfessionalQualifications

Status of Disciplinary actions, if any

Section-II (To be filled by the Appraisee)

Mention most important achievements during the year

Section-III (To be filled by the Appraisee)

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)


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Five Objectives Score (1 to 5)

1. Deposit

2. Advances

3. Profit

4. Reduction of Bad debts

5. Reduction of Complaints

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

Section-II

Behavioral Skills

1. Job Knowledge

2. Communication Skills

3. Attitude, Behaviour & Response to Controlling Offices

4. Initiative

5. Attendance & Punctuality

6. Commitment to Job & Organization

7. Team Work

8. Analytical Ability

9. Development of subordinates

10. Personal appearance and grooming

Total score / No. of objectives x 0.3 (Score of Section-II)

Grand Total:_________________

Section-III

- Signature of Appraisee & Date

(with comments, if any)

- Signature of Appraiser & Date

(with comments, if any)

(Immediate Supervisor)

- Countersigned by the Appraisers Supervisor & Date


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NBP believes in two skills for employee relation

Interpersonal communication

Conflict management

Interpersonal communication skill:

At NBP the first skill for managers to understand and practice is interpersonal

communications, because it is the foundation for all actions in the workplace and it allows

the manager an opportunity to build relationships with the overall workgroup without

alienating anyone in the work environment. Working with diverse groups of people

requires a tremendous amount of interaction. If these interactions are positive, they can

help create the right workplace climate, attitudes, beliefs and behaviors. Keeping in view

these all points interpersonal NBP emphasizes on strong interpersonal communication

skill for effective accomplishment of goals.

Conflict management:

In NBP the second skill for managers to leverage, is conflict management. It is actually

conflict resolving approach. Learning to leverage this skill helps in resolving employee

relations issues quickly and effectively, and creates greater satisfaction with the workgroup.

In this skill manager let his/her subordinates to speak and say whatever they feel during

working with manager. Manager cares employees emotions and feelings.


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ORGANIZATIONAL CAREERM

ANAGEM

ENTo Employee Job Changes

Job Changes within the organization

o Promotion

o Transfer

o Demotion

Separations

o Layoff

o

Terminationo Resignation

o Retirement

Promotions

Transfers / Layoffs

Relocations 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:-


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Result Oriented RatingMethod

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. Develop plans for how & when the objectives will be accomplished.

3. Agree on the yardsticks for determining whether the objectives have been met.

Progress reviews are held regularly in the bank until the end of the period for which the

objectives were established.

MBO (Management by Objectives) is a complete system of planning and control in the

bank. It promotes success of each employee, employees Manager, the department and the

bank.

Graphic Rating Scale

Level of Performance

Rating Factors

Points

1 2 3 4 5

Attendance & Punctuality

Unsatisfactory

Conditional

Satisfactory

AboveSatisfactory

Outstanding

Job Knowledge

Attitude, Behaviour & Response

To controlling offices / branches

Personal Appearance & grooming

Quality of work

Commitment to job & Organization / bank /

branch

Communication skills

Performance Evaluation

1. Immediate Supervisor

2. Peers

3. Subordinates


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4. Self Appraisal

5. Customers served

6. Computers

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

StaffMotivation to improve performance in NBP

1. Communicate Frequently

2. Encourage subordinates to learn about modern technologies

3. Encourage participation

4. Judge performance, Not Personality

5. Avoid destructive criticism

6. Set mutually agreeable goals

7. Be specific & be an active listener

8. Continue to communicate and Assess progress toward goal regularly

9. Make organizational rewards contingent on performance

Performance Management requires willingness and a commitment to focus on improving

performance at the level of the individual every day.

Broad Process of Performance Management

1. Define Performance

Ensure that an employee individually and the department as a whole know what is

expected to them.

i. Goal setting is a vital role in improving performance and success. So,

improvement and productivity increase by using goal setting.

ii. To measure the extent to which goals have been accomplished.

iii. Regular assessment of progress toward goals focuses the attention and

efforts of an employee.

1. Facilitate PerformanceManagers who are committed to managing for maximum performance

recognize that one their major responsibilities is to eliminate roadblocks to

successful performance.


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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.

2. Encourage PerformanceTo 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.


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SWOT ANALYSIS OF NBP

SWOT is an acronym for strengths, weaknesses, opportunities and threats. SWOT is

related to what the present position of an organization. SWOT tells you how strong an

organization is, what are its weak areas, what are the opportunities for its better

performance and how is the organization threatened by others. SWOT analysis is based on

the assumption that if managers carefully review such strengths, weaknesses,

opportunities, and threats a useful strategy for ensuring organizational success will become

evident

NBP is considered to be a very sound bank in the financial circles. Its a bank where the

customers can safely keep their money as long as they want.

Following is a list of SWOT of NBP

Strengths

Strength can be defined as an area where a company is best at doing something or a

feature that puts the company at an advantage in comparison to its competitors. NBP

enjoys the following strengths:

NBP is a well established bank enjoying long history of over 60 years of experienceand profitable operation.

NBP is the largest private bank in Pakistan now and people trust is very high.

It has the largest branch network among private banks of Pakistan.

NBP has been very effective in controlling costs as it successfully restructured

itself after its privatization. During this process more than 1,600 employees were

relieved under a golden handshake scheme and 110 branches were closed.

Excellent branches appearance gives an edge to NBP over other banks. The

branches are well furnished even in less developed areas where other banksbranches give a poor view.

NBP has the ability to bring innovative products and services like personalized

service, electronic funds Transfer, sophisticated financial products such as

electronic banking, auto-teller machines and evening banking.


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The Banks Rupee Traveler Cheques have been market leaders for the past six

years.

NBPs car to car financing scheme is unique in auto loan segment.

NBP is an internationally recognized name in banking services and products.

NBP has forged strategic alliances with international banks for expanding its

network further, both locally and internationally.

Weaknesses

A weakness is defined as an area in an organization where the organization is not as good

at doing something as its competitors or a thing which an organization lacks thus putting

the organization at disadvantage in comparison to its competitors. Based on the above

definition, NBP has the following weaknesses.

Lack of communication between bank and customers about terms and condition

of products and services. Like centralization of cheque book issuing process.

Employees at branch level are not properly motivated to work by heart. They take

the all routine activities as a boring job.

Most of the employees lack managerial training as they are not properly educated.

Due to seniority, they have moved up on the hierarchy line to Grade-I, II or III

positions having hardly bachelor degrees. This type of senior staff cannot apply the

modern and innovative techniques of management in decision making.

Mission of NBP is not well defined.

Opportunities

An opportunity can be defined as a change in external environment which if properly

exploited with the organizational strengths will result in enhanced sales, market share, or

income. Using its strengths, NBP can avail the following opportunities. Opportunities

require explanation therefore I have used headings instead of arrows


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AUTOMATIC TELLERMACHINE (ATM)

This system is known as "Any Time Money" because it allows customers who have an

ATM card to withdraw money at any time from the bank without interacting with human

teller. Since the ATM machine can be installed anywhere like petrol bunks, markets,

railway stations etc, and can well be linked to the main computer. It allows customers to

transact with the bank 24 hours a day and 365 days a year. They allow the customers to

transfer money to and from accounts to view account information, to receive cash. It can

also be used to deposit cheques and cash into the accounts. No bank in Pakistan is

offering this service currently. So an opportunity exists for Habib bank to differentiate.

Rate of return

The range and choice of products available & offered by the commercial banks is limited.

Rates of Return / Profits on Deposits are so low and unattractive that very limited options

are available to the depositors. They do not match the current rate of inflation. NBP

differentiate and increase its deposit by offering attractive rate of return on deposits.

Threats

Threat can be defined as a change in external environment which if not met with proper

strategies will result in loss of revenues, market share, or income. In the context of NBPs

external environment, the following potential threats exist:

The Rupee Travelers Cheque (RTC) sales volumes may be affected on account of

regulatory restriction imposed by SBP on issuance of large value denominations.

For the last of 2 to 3 years, Pakistan is facing economic and political instability

which is a big threat.

Foreign banks are flourishing in field of consumer financing.

Afghan war and Iraq war has a deep effect on the economy of Pakistan, which has

affected NBP.


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Increased regulations from State Bank of Pakistan may affect its business.

WORK DESCRIPTION

I have started my Internship Program from July 2 2009 to August 15 2009in NBP (AJK).

The branch where I done my internship was completely computerized that all things to be

done through computerized system. During my Internship Period Ive learned and

performed various tasks at different time period.

In the beginning I worked in customer service and Account department of the branch,

where I learned that how to open different deposits accounts in the bank, and what are

their procedures and requirements. Although a week later i moved towards the Bills &

Remittance Department but with the passage of time and time to time I guide and inform

the clients who are interested in opening account in the bank and help them in filling of

the form.

I have learned some basic functions of banking i.e. how deposit amount are carried out in

the bank. It is done in two ways. One is Customer wants to deposit through Cash and

other is if he wants to deposit through Cheque. In first case where Customer wants to

deposit through Cash a voucher is filled for the customers with the descriptions of

Account number, amount deposited title of the account and the name of the customer

having that account. The depositor put a signature on the voucher and the amount is paid

to cashier who stamped it and the voucher consisted of two parts, one is given to the

customers and the other part remains with the bank. In this type of deposit, the voucher is

received by writing the amount as BY CASH. And In Second situation where customer

wants to deposit through Cheque the same procedure is followed but in the voucher the

Cheque number through which the amount is deposited is written against writing BY

CASH. It becomes my whole time duty during my internship program to guide and help

people in filling their deposit slips. Along with this I was given the assignment of issuing

Cheque books. It is issued to those customers whose accounts are operated by the concern

bank. Cheque books in two different categories are issued which are as follows i.e. Cheque


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book for Current account and Cheque book for Profit & Loss Sharing Accounts (PLS).

The cheque book was issued to Customer after 3 working days from the time of applying

for cheque book.

My leaning experience

My experience during my internship was nothing short of being fabulous. It developed a

practical attitude in me and realized me the importance of the job assigned to me. The

most important things that I learned from my Internship are

Dealing with different peoples in different styles

Practical exposure of workplace.

Practical experience of working practices related with to field of education

Managing things and creating balance in my work and personal life as well

I found the six week internship period short so that I cant go in depth of each

section. The duration should be more than 6 weeks.

Internship is an evitable activity and the experience that is acquired from the internship is

spectacular and this experience helps a lot in professional carrier.


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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 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.


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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 theproductivity 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 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 HumanResources.

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

HRM Internship

Documents

Transcript of HRM Internship