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HISTORY OF MCB

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• Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having strong financial capacity were thinking to invest in this sector as well. This was the idea which provided the way for setting up MUSLIM COMMERCIAL BANK Ltd known as MCB. This was the third Muslim bank in the subcontinent.

• This bank was incorporated under companies’ act 1913 on 9th July, 1947 (just before partition) at Calcutta.

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MCB TODAY

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• MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion

• Total assets of around Rs.300 billion.

• The Bank has a customer base of approximately 4 million.

• Nationwide distribution network of over 1,000 branches

• Over 450 ATMs in the market.

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P.O (HR)

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HUMAN RESOURSE MANAGEMENT

PROCESS IN THE MUSLIM COMMERCIAL BANK

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HRM PROCESS IN MCB

•Human resource planning and forecasting•Employee Recruitment and Selection•Training And Development•Performance Management•Employee Compensation And Benefits•Organizational Career Management

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Human resource planning and forecasting

Human resource planning and forecasting includes the specific and interrelated activities that together constitutes HRP system :

• HRP Process:• These are steps of HRP in Muslim Commercial Bank.

• Determining the Objectives.

• Defining skills required to meet the objectives.

• Determine additional human resource requirements.

• Develop actions to meet the anticipated HR needs.

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Forecasting HR Requirements

The purpose of forecasting of human resources is to estimate labor requirements at some future times period. Such forecasts are of two types.

1.The external and internal supply of labor 2.The aggregate external and internal supply of

labor

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Methods To Forecast HR Needs

• Zero-base Forecasting: This method uses the MCB’s current level of

employment as the starting point for determining future staff needs in MCB.

• Bottom-up Approach: It is the forecast method in which each successive level

of the MCB, starting with the lowest and forecasts its employee requirements in order to ultimately provide an aggregate forecast of employee needs.

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•Use of mathematical models:Mathematical models are also used for forecasting HR requirements. It defines relationship between demand and the number of employees supplied.

•Simulation:It is a technique for experimenting with a real world situation through a mathematical model representing that situation

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Employee Selection and Recruitment

“People are at the heart of our success”

“Recruitment is the discovering of potential applicants for actual and anticipated organizational vacancies”

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Human Resource Department has combined many selection techniques i.e. job application form , employment test, interview, and physical examination.

The step to step Recruitment process followed by organization is:

• Planning• Job Analysis• Sourcing• Screening• Selection• Interviewing• Hiring• Reporting

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Analysis of positions and requirement

After planning it is analyzed that which position is going to be filled and there requirement is analyze by job analysis:

• Identify Candidates: MCB identifies its candidates by developing

the criteria of job description and job specification and acting upon these criteria job vacancy ads are spread through different Medias like newspapers and internet

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Sources Of Candidates

I . Transfers:The employees are transferred from one department to

another according to their efficiency and experience.

II . Promotions :The employees are promoted from one department to

another with more benefits and greater responsibility based on efficiency and experience.

III. Others areUpgrading And Demotionof present employees according to their performance.

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IV. Retired And Retrenched Employees may also be recruited once again incase of shortage of

qualified personnel or increase in load of work. Such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and

procedures.V. The dependents and relatives of Decreased Employees And Disabled Employees are also done by many companies so that the members of

the family do not become dependent on the mercy of others

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External Sources

• Press Advertisement• Educational Institutes• Placement Agencies• Employment Exchanges• Unsolicited Applicants• Employee Referrals / Recommendations

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Employment Selection Process:

Recruitment and selection in MCB has many processes and steps that must be followed.

•Decide what positions to fill, throughpersonal planningandforecasting•Build a pool of candidates for these jobs, byRecruiting internal or external candidates.

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•Have candidates complete application form and perhaps undergo initial

screening Interviews.•Use selection tools like tests, background

investigations, and physical exams to identify viable candidates.

•Decide who to make an offer to, by having the supervisor and perhaps others interview the candidates.

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Screening And Short Listing

• Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board. After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume

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Test / Interview

• In this process short listed candidates are called for test and interview according to nature of their applied jobs.

• Selection Interview:Selection interview is conducted for short listed candidates. A

selection interview is the procedure designed to predict future job

performance on the basis of applicant’s oral responses to oral inquiries.

Formats Used In Selection Interview:• Structured/Directed• Unstructured/Non directed

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Modes Of Interview :•Penal interview:An interview in which a group of interviewers questions the

applicant.•Structured sequential interview:An interview in which the applicant is interviewed sequentially by

several persons ; each rates the applicant on a standard form.Types Of Questions:

•Situational:A series of job-related questions that focus on how the candidate would

behave in a given situation.•Job related:A series of job-related questions that focus on relevant past job-related

behaviors .These types of questions are asked from those candidates who have past experience of job.

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Stress:An interview in which the interviewer seeks to make the

applicant uncomfortable with occasionally rude questions that supposedly to spot sensitive applicants and those with low or high stress tolerance. These sorts of questions are asked according to high

designation of candidate.

•Puzzle questions:Recruiters for technical and finance job use questions to pose

problems requiring unique solutions to see how candidates think under pressure

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Testing

Organizational performance always depends in part on subordinates having the right skills and attributes. Keep in view this point MCB tries its level best to hire highly skilled and suitable employee for each job. For judging these skills MCB conducted some tests of employees on the basis of

• Reliability• Test validity • The consistency of scores obtained by the same person when

retested with the identical or equivalent tests is called reliability and the accuracy with which a test and interview what it purports to measure or fulfills the function it was designed to fill is referred as validity.

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Types Of Test:Generally two types of tests are taken MCB:•Tests of Cognitive ability ( mental ability , eye

hand co-ordination )•Physical test

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Cognitive Test Abilities Consists Of

1.Intelligence Tests:Tests of general intellectual abilities that measure a

range of abilities, including memory , vocabulary, verbal fluency, and numerical ability are intelligence tests.

2.Aptitude tests:Tests that measure specific mental abilities, such as

inductive and deductive reasoning , verbal comprehension, memory, and numerical ability are aptitude tests

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•Stress: An interview in which the interviewer seeks to make the

applicant uncomfortable with occasionally rude questions that supposedly to spot sensitive applicants and those with low or high stress tolerance. These sorts of questions are asked according to high

designation of candidate.

•Puzzle questions: Recruiters for technical and finance job use questions to pose

problems requiring unique solutions to see how candidates think under pressure

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Tests Of Physical Abilities

Tests that measure static strength, dynamic strength, body coordination, and stamina are physical. Job related to guards and deliverers go through this sort of test .

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MCB recruits candidates in three cadres

• 1.Probationary Officers ( entry point for fresh graduates )

• 2.Management Trainees

• 3.Contractual Appointments

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Final Selection

After going through all the processes the best candidates according to MCB’s selection boards are selected. The candidates, who are finally selected, are offered appointments as probationary officers, after signing the following bonds

1. Bank’s Secrecy Bond2.Bank’s Security Bond3.Service Agreement Bond

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Orientation

Just after final selection and before starting of training process orientation is conducted for selected employees in orientation new employees are provided with basic background information about the MCB the basic contents of successful orientation are:

• Information on employee benefits• Personnel policies• The daily routine• Company organization and operations• Safety measures and regulation

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Training And Development

“Training is the organized procedure by which people learn knowledge and/or skills for a definite purpose”.

MCB has a mix of training methodologies for its employees. We can broadly categorize these methods into five groups:

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

trainee’s skills, and develop objectives.• Instructional design:Produce the training program content, including workbooks ,

exercises, and activities.

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• Validation: Presenting the training to a small

representative audience.• Implement the program: Actually training to the targeted employee

group.• Evaluation: Assesses the program’s successes or failures.

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Training Needs Assessment

Needs assessment-Organizational support-Organizational

analysis-Task and KS Analysis -Person analysis• Instructional Training Validity Effective training practices involve the use of an

instructional systems design process. The instructional systems design process begins by conducting needs assessment.

• Needs Assessment refer to the process used to determine if training is necessary.

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• Because needs assessment is the first step in the instructional design process:

• If it is poorly conducted, training will not achieve the outcomes or financial benefits the company expect

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Needs assessment involves

Organizational Analysis involves determining:• The appropriateness of training, given the business

strategy• Resources available for training• Support by managers and peers for training.• Task Analysis involves:• Identifying the important tasks and knowledge, skill,

and behaviors that need to be emphasized in training for employees to complete their tasks.

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Person Analysis involves:• Determining whether performance

deficiencies result from a lack of knowledge, skill, or ability (a training issue) or from a motivational or work design problem

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Training methods used by MCB

• On-the-job Training• Off-the-job Training• Apprenticeship Training• Informal learning• Effective lectures

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Programs for training and development

The Bank has the latest state-of-the-art training facilities at its Training &Development Center (TDC) and a dedicated training team to look after most of the training needs of its employees. MCB uses following programs for training and development

• Management Trainee• Management associate• Cash officers• Internships

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EMPLOYEE DEVELOPMENT

Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done . Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain in experience and knowledge

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Performance Management

• It is the description of job-relevant strengths and weaknesses of an individual or a group.

Setting and clearly communicating performance standards and expectations , observing and providing feedback, and conducting appraisals enable you to achieve the best results through managing employee performance.

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Setting Performance Standards

• In MCB, performance expectations are the basis for appraising employee performance. Written performance standards let supervisor compares the employee's performance with mutually understood expectations and minimize ambiguity in providing feedback . Having performance standards is not a new concept; standards exist whether or not they are discussed or put in writing. When observed an employee's performance, supervisor usually makes a judgment about whether that performance is acceptable . How do you decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards

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Performance Appraisal

• MCB Pakistan’s performance appraisal system is based on a combination of 'MBO‘ and 'Enabling Traits' approaches, under which:60% weight age is given to performance goals discussed and laid out in the beginning of the year.

Another 40% weight age is assigned to enabling personality factors, which are clarified to all employees by their supervising officers at the start of each year . The system and process flow of the appraisal process is modified, improved and upgraded from time to time in line with the Bank's requirements, as well as with industry practices. HR Department notifies all units of the Bank of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, form filling, monitoring and final appraisals.

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Employee Compensation And Benefits

• An organization reward system is a program or scheme which provides incentives for those individuals or groups who perform well in the organization. This reward system in actual motivates employees to perform well by attracting with well designed incentive packages. It includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contribution . Compensation is payment to an employee in return for their contribution to the organization , that is, for doing their job. Compensation includes topics in regard to wage and/or salary programs and structures.

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Employee Compensation And Benefits

• Types Of Compensation And Benefits: For employers, compensation costs must be at a level

that both ensures organizational competitiveness and provides sufficient rewards to employees for their knowledge, skills, abilities, and performance accomplishments. Balancing these face that the employer can attract, retain, motivate (ARM) and reward the performance of employees requires considering several types of compensation.

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Financial Benefits

• Life Insurance• Disability Insurance• Medical Allowances• Pension Plans• Severance Pay• Conveyance Allowance• Bonuses• Profit Sharing

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Non-Financial Benefits

• Sound Working Environment• Training And Development• Job Security• Pick And Drop Facility• Sick Leave/ Vacations• Flexible Work Arrangement• Flex Hours

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Compensation And Benefits In MCB

MCB awards their employees a lucrative (attractive) compensation in return of their tough mental labor. Apart from basic salaries they are offered many other benefits like:

• Utility Allowance• Medical Allowance• Overtime Allowance• Education Allowance• House Rent Allowance• Bonuses

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Organizational Career Management

• "A goal that you desire to achieve in a selected field or occupation with a well-thought out plan, to get you there is called Career Planning."

• In employment context, career planning is continuous process of evaluating your current lifestyle, likes/dislikes, passions, skills, personality, dream job, and current job and career path and making corrections and improvements to better prepare for future steps in your career, as needed, or to make a career change . Career planning is important because the consequences of career success or failure are linked closely to each individual’s self concept, identity and satisfaction with career and life. In the new concept of career management, company and the employee are partners in career management.

• According to a view, “A job is just an opportunity to learn new skills that you can then peddle elsewhere in the market place “.

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Employee job changes

It is the responsibility of top management to develop and implement a cost-effective career planning program must fit the nature of the business, its competitive employment practices and the current (or desired) organizational structure . This process is complex because organizational career management combines areas that previously have been regarded as individual issues :

• Performance appraisal • Development• Transfer• Promotion

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• Termination: Usually, this process is perceived negatively by employees. In termination,

an employer uses his right to terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are:

•The end of the agreement for which the employee was in employment.•Employee sickness and incapability to do work.•Removal from offices.•Non- performance.•Indiscipline•Misconduct•Insubordination

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Resignation

• This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities; a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country . So, an employee resigns for:

•Better compensation and benefits•Higher position / level•Challenging role•To move from an unknown or lowly branded company to a highly

branded and reputed company•For foreign or international assignment

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Retirements

• Employees at all levels in MCB get retirement after either the completion of 30years in service or reaching an age of 60 years. The bank operates the following staff retirement benefit schemes for its employees :

For employees who did not opt for the new scheme, the bank operates the following:

I . Approved contributory provident fundIi . An approved gratuity scheme

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LABOUR MANAGEMENT RELATION

1.Focus on mutual trust in MCB2.Control on human diversity in the work place3.Healthy care of employees in MCB4.Resolving dispute matters in MCB5.Fair wages and incentive system in MCB6.Quality, productivity and employment

security in MCB

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THANK YOU

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MUSLIM COMMERCIAL BANK