CHAPTER 1

INTRODUCTION

For the fulfillment of the requirement of Practicum 3, the 4 th year students of Bachelor of

Science in Computer Science were instructed to be applied on On-the-Job Training. Included on the said

training was a research project regarding the operations of the business they will be applied for.

The four Computer Science Students – Sherraine Aurellano, Miriam Jurado, Randy Tolentino &

Cyril Legria were applied in Philippine National Bank – Ortigas Branch. They were assigned at the

Accounting Department. Since their department was operational, the management decided to assign all

of them in one department. The usual tasks they were doing is to encode & print the abstract of their

total collections, compile and arrange the Deposit Application Form (DAF), Signature Cards (Sigcards) of

their clients, Xerox & scan their daily transactions including deposit slip, withdrawal slip, checks &

conversion slip, and also encoding of serial dollars used in the operation.

STATEMENT OF THE PROBLEM

The main purpose of the students aside from being an On-the-Job Trainees is to conduct a

research study on how were their business operations.

Specifically, they sought to answer the following:

1. How effective are the employees of Philippine National Bank in terms of:

a. Work Performance b. Quality / Output of Work

c. Time Management d. Social / Human Relation

2. What is the operational Structure of the business?

3. How efficient & productive is the output of work of Accounting Department?

SCOPE AND LIMITATIONS

This operational research only focused on the issues inside the Accounting Department of

Philippine National Bank – Ortigas Branch where the trainees are involved. This study is conducted on

the first semester of the school year 2009 – 2010. It is also limited only to the varieties such as:

Employees Work Performance

Operational Structure of Accounting Department

Operation Effectiveness

SIGNIFICANCE OF THE STUDY

The Computer Science Students decided to apply as trainees under Accounting Department of

Philippine National Bank – Ortigas Branch. Their requirement is to fulfill the training 200 hours. The

total hours given was accomplished for 2 months. But for the accomplishment of the operations

research, the students should make a written output of their achievement & learning experiences

including their observation regarding the operation of Philippine National Bank – Ortigas.

The written output of their training signifies the fulfillment of all the requirements given to the

Computer Science Students enrolled for Practicum 3. The compilation of the output includes all data &

information gathered by the student trainees from Philippine National Bank – Ortigas regarding their

operations where the students are applied.

This Operation Research would be beneficial for both parties – the students & PNB. For without

the help of the latter, there will be no source of reference for the former. Besides the effort of the

students were also good benefits for the operations of the institution.

DEFINITION OF TERMS

DEPOSITE APPLICAION FORM (DAF) – an application form for depositors that used for future reference

of the bank

SIGNATURE CARDS (SIGCARD) – a small card where the signature of the customers appear, for identity

confirmation

ENCODE – To assign a code to represent data

EMPLOYEE - A person who is hired to provide services to a company on a regular basis in exchange for

compensation and who does not provide these services as part of an independent business.

TIME MANAGEMENT - is a set of principles, practices, skills, tools, and systems that work together to

help you get more value out of your time with the aim of improving the quality of your life.

HISTORY OF PNB

The Philippine National Bank was established as a government-owned banking institution on

July 22, 1916 with headquarters in the old Masonic Temple along Escolta, Manila. Its primary

mandate was to provide financial services to Philippine industry and agriculture and support

the government's economic development effort. World War I, then raging in Europe, generated

huge demand for the country's major exports namely: sugar, copra, coconut oil, Manila hemp

and tobacco. However, not much was being done to develop the industries that produced these

sought-after crops since access to credit facilities was limited then. To solve this problem,

Henderson Martin, Vice Governor of the Philippines, together with Mr. Miguel Cuaderno (who

later became Central Bank governor) drafted the charter for a national bank.

In February 4, 1916, Public Act 2612 was passed by the Philippine legislature providing for the

establishment of the PNB to replace the small P1 million government-owned Agricultural Bank.

PNB's first head office was the Masonic Temple along Escolta, the then "Wall Street of the

Philippines" in the bustling district of Sta. Cruz in Manila. An American, H. Parker Willis, was its

first president.

"The First Universal Bank in the country"

With PNB's establishment, Filipinos found a bank of their own. PNB was authorized to grant

short and long-term loans to agriculture and industry. The Filipino farmers then could avail of

loans with interest between 8% to 10% per annum. PNB was also authorized to receive

deposits, open foreign credits and rediscount bills. It was also given the special power to issue

circulating notes. As such, PNB functioned as the de facto Central Bank of the country until

1949. On July 24, 1916, PNB established its first branch in Iloilo.

In 1917, PNB marked its entry in the field of international banking when it opened its New York

Branch. The following year, it established five more domestic branches and another overseas

branch in Shanghai, China.

PNB briefly ceased operations in January 1942 but reopened the next month under the

supervision of Japanese authorities. After the Second World War, PNB reopened immediately

and acquired the assets and assumed the liabilities of the banking division of the National

Treasury.

With the establishment of the Central Bank in 1949, PNB's role as issuer of currency notes,

custodianship of bank reserves, sole depository of government funds and clearing house of the

banking system ceased.

MISSION AND VISION

Mission Statement

We are a leading, dynamic Filipino financial services group with a global presence committed to

delivering a whole range of quality products and services that will create value and enrich the

lives of our customers, employees, shareholders and the communities we serve.

Vision 2010 and Beyond

To be the most admired financial services organization in the country in terms of:

Financial performance – rank #1 or #2 in its businesses in terms of return on equity

Innovativeness – in products, services, distribution and the use of cutting-edge technology

Customer perception

The preferred financial services provider

The customer-centered organization with a passion for service excellence

Social responsibility – the employer of choice, a good corporate citizen and partner in nation-

building

Long-term vision – developing competitive advantage on a sustained basis by anticipating

changes in customer’s preferences and in the manner of doing business

CHAPTER 2

REVIEW OF RELATED LITERATURE

FLEXCUBE – POSITIVE AND NEGATIVE IMPACT

FLEXCUBE enables banks to standardize, transform and optimize their business

processes. Banks can use FLEXCUBE to simplify and streamline processes, track and

administer complex multi-step transactions, efficiently distribute workload and improve

customer service by using predefined custom processes for different segments of

customers.

Banks can achieve competitive differentiation by developing innovative business

offerings and to fine tune their processes based on insight and measurement. The

release of FLEXCUBE enables banks to and accomplish this holistically.

FLEXCUBE provides users with dashboards to measure process performance and

identify bottlenecks for process improvement. The product serves Governance and Risk

& Compliance frameworks allowing institutions to be compliant with changing

regulations, monitor fraud and manage their risks .

The release of FLEXCUBE which offers wholesale banks for their cash, trade,

payments, treasury and lending and retail banks for their savings, deposits and loans

businesses. Other key features of this new release include SWIFT 2007 enhancements,

SwiftNET connectivity and comprehensive support for SEPA Payment Processing.

FLEXCUBE, since the first release of the application in 1997, offers users of their

software the ability to configure new products without any software code change. It

allows them to process these for multiple entities from a single-instance of the

application installed in the bank.

With rave reviews such as the rankings published in March 2003 by a trade

journal calling flexcube the best-selling banking software product in the world and with

so many arising success stories it is difficult to find the associated issues with flexcube.

However, users of flexcube complain about certain aspects of its functionality. One of

the biggest disadvantages with i-flex is that local developments are not handled by the

client but rather through India and includes additional license fee’s. T24, on the other

hand does, In addition to this, working with i-flex can become very frustrating as well

because of I-flex’s policy of only hiring Indian IT professionals. This can be cause issues

with countries requiring travel visa’s.

The implementation of flexcube can also be costly since the bank will be obliged to hire

professionals from Oracle. The few problems with flexcube can possibly be blamed on

the current economic situation regarding service exports and the political situation

involving travel between countries, regardless flexcube’s business model remains a

outstanding success.

DIMENSION OF HUMAN CONNECTIONS

Sociality is at the heart of human existence, a fact that has been acknowledged

as far back as Aristotle. Alfred Adler and Rudolf Dreikurs were among the first in the

twentieth century to develop theoretical perspectives on the topic, but only in the last

half-century has sociality been subject to vigorous theoretical and empirical study.

According to Abraham Maslow's hierarchy of needs, relational and belonging needs are

superseded in importance only by survival and safety needs. Harry Harlow's study of

infant rhesus monkeys did not deny the importance of survival needs (i.e, food), but

showed that social contact is just as important for healthy growth and development.

Prompted by Konrad Lorenz's studies of imprinting and the plight of infants and young

children in Britain's post-World War II orphanages, John Bowlby (1973) showed that in

humans, too, maternal-child attachment bonds are essential for healthy growth and

development. Across the lifespan, affiliative and attachment bonds have clear survival

and reproductive advantages that may help explain why the motivation to form and

maintain close social bonds is as potent as the drive to satisfy hunger or thirst. Just as

hunger and thirst motivate the search for food and water, the pain of unmet social needs

(i.e., felt social isolation) motivates a search for social reconnection. The desire for

connection is so irrepressible that people imagine relationships with important social

others, or indulge in "social snacks" (e.g., photos of loved ones) and surrogates (e.g.,

parasocial attachments to television characters).

In earlier work, Louise Hawkley and I have found that mental representations of

feelings of social connectedness are multi-faceted. Quantitative analyses have revealed

three dimensions along which people feel socially connected, and this structure was

evident in young as well as middle-age adults and was the same across ethnicities. The

first dimension, which we termed Intimate Connectedness, reflects satisfaction of the

social self at a deeply personal level, and was uniquely associated with marital status.

Relational Connectedness reflects satisfaction of close friendship needs and was

uniquely associated with frequency of contact with close friends and relatives. Collective

Connectedness reflects satisfaction of the need to belong to a meaningful group and

was uniquely associated with number of memberships in voluntary groups. These

findings represented the first installment in our research on the ways people connect

with others.

Analysis of Internet Banking Issues

The banking industry has been significantly influenced by evolution of

technology, such as the use of internet (web). Internet adds another delivery channel to

the existing channels in banking system (ATMs, branches, and telephone). Internet

banking (IB) refers to the use of the Internet (web) as a remote delivery channel for

banking services, such as opening a deposit account or transferring funds at different

accounts etc. Further, IB is a desirable opportunity for banks, where the key to success

is customer adoption (Nelson and Richmond, 2007).

The evolution of internet banking has many advantages over traditional banking

delivery channels (Gan and Clemes, 2006). This includes an increased customer base,

cost savings, mass customization and product innovation, marketing and

communications, development of non-core businesses and the offering of services

regardless of geographic area and time (Giannakoudi, 1999). Further, the main

(economic) argument for adopting the Internet as a delivery channel is based on the

expected reduction in overhead expenses made possible by reducing and ultimately

eliminating physical branches and their associated costs such as staff and rent

(Hernando and Nieto, 2007).

CHAPTER III

RESEARCH METHODS AND PROCEDURES

This chapter consists of methodology and questionnaires we used to conduct this research.

METHODOLOGY

Different methods of research must be acquired to meet a particular research and as

researchers, he/she must use a variety of methods for the fulfillment of the research. Enough time and

costs would be great help on the approach of the research and the appropriate subject of the research

itself should determine the methods used.

The student trainees used observational method as well as indirect interview to the employees

that helped them obtained the facts and information they needed with the said study. Observational

research is a common research method aimed at observing the relations of employees with their clients

including their work environment. On the other hand, indirect questions were asked to the employees

regarding the environment and work flow of the business.

Both methods used in this research were expected to give valuable information as well as

reliable and relevant data in return.

Chapter IV

This chapter deals with the Presentation, Analysis, and Interpretation of Data.

Effectiveness of Employees

Based on the observation and data gathered, it states that the effectiveness of the employees

was rated excellent under the following category:

a. WORK PERFORMANCE – work performance of each employee from rank-in-file up to the

managerial level were found to be outstanding. They work responsibly and effectively as a team.

b. TIME MANAGEMENT- punctuality of each employee is strictly observed. Each of them comes

earlier before banking hours. If some of them came late, the reason was beyond their help.

c. QUALITY OUTPUT OF WORK – since the department is operational, employees should present

quality output of daily transactions so that they will avoid repetitions of report. And in this

category, they are outstanding.

d. SOCIAL/HUMAN RELATIONS – working socially is also not an issue on the employees. They work

enthusiastically with their clients and also with their co-employees. There’s no competition or

rivalry with each of the employees. In fact, an ambience of a family is with them.

Operational Structure of the Business

The Philippine National Bank operational structure is good. They used Flexcube in their

authorization of transactions. Each of the employees has their own user I.D. and password.

Aside from having soft copies of their clients’ information, they also have printed copies of it.

Their transaction process is organized, from clients to Sales and Service Head. Problems seldom

occurred due to limited connection of Flexcube.

Output Efficiency and Productivity

Quality outputs are the result of the effectiveness of employees. In that case, efficiency and

productivity of work output is very good. They meet the Check Clearing everyday, regarding the

security of their checks. They used MS Excel in serializing dollars since it is printed right after the

serialization. They give their clients the satisfaction after the transactions.

CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter deals with summary, conclusions and recommendations.

SUMMARY OF FINDINGS

QUESTION: How effective are the employees of Philippine National Bank in terms of work

performance?Time Management? Quality output of work? Social Relations?

Based on our observations, the effectiveness of the employees in the workplace under the

categories: Work Performance, Time Management, Quality Output of Work and Social Relations, were

rated excellent. They always come early before time. Human error was less because they are

knowledgeable on the works that were assigned on them. They are responsible enough to handle the

important and confidential things inside the bank. They are also sociable with their clients.

QUESTION: How is the operational Structure o0f the Business?

The operational structure of Philippine National Bank is rated outstanding. They have organized

transaction process once the clients enter the bank. Each of the clients was given a chance to wait for

their turn in a comfortable lobby. Pressure was not felt because of kind accommodation.

QUESTION: How efficient and productive is the output of work of Philippine National Bank (Ortigas )?

Efficiency and Productivity of Output in Philippine National Bank – Ortigas is average even if they

produce more outputs because of more clients on their daily transactions. They were not able to file it

as early as it has been processed. Filings of this said output is accomplished once they have vacant time

for it.

CONCLUSION

We can conclude that Philippine National Bank is advanced in terms of Management

Information System in handling important data from one client through their flexcube software. They

satisfy their clients by securing confidential information. Since the institution is a bank, each of the

employees has their own computer unit they also have database server to handle the data from

transactions.