In The Name of Allah Who Is The Most Gricious AND The Most Merciful
In The Name of Allah Who Is The Most Gricious AND The Most Merciful
In The Name of Allah Who Is The Most Gricious AND The Most Merciful
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ACKNOWLEDGEMENTS
Fantastic Shell
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This Dissertation Is
Dedicated to Our parents and teachers
who always encourage and inspire us to
learn the Holy Quran, Sciences and
business techniques
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Project Report
M SAAD SHAUKAT
BAU-F07-006
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BBA
CONTENTS
DRAWBACKS……………….…..
……………………………………………………..31....................................................6
..........................................................................................................................................8
MCB – AS AN ORGANIZATION..................................................................................8
CORPORATE INFORMATION....................................................................................10
ORGANIZATIONAL CHART......................................................................................11
HUMAN RESOURCE DEPARTMENT STRUCTURE...............................................13
ROLE OF HUMAN RESOURCE DEPARTMENT IN ................................................14
MCB...............................................................................................................................14
HUMAN RESOURCE PLANNING..............................................................................16
EMPLOYMENT CATEGORIES...................................................................................18
WORKING HOUR POLICY.........................................................................................19
Work schedule....................................................................................................................19
RECRUITMENT AND SELECTION...........................................................................19
What laws and regulations shape HRM practices?.............................................................20
What are our HRM needs?.................................................................................................20
Where do we find qualified job candidates? ......................................................................20
How can we choose the best-qualified job candidates?......................................................20
How can we ensure employee skills are current?...............................................................20
What options exist to handle overstaffing? .......................................................................20
Vacancy Identification....................................................................................................21
The need for hiring a person is identified by Branch Manager for a specified branch.
The request is forwarded to the regional manager. And than regional manager forwards
that request to the General Manager, and than General Manager forwards it to the
Group Head (provincial level), and in last it is forwarded to Human Resource
Department. Than it becomes the responsibility of the HR department and it evaluates
that whether the branch needs a person or not. ..............................................................21
Advertisement.................................................................................................................21
Recruitment Sources.......................................................................................................21
Selection devices............................................................................................................21
EMPLOYEE TRAINING...............................................................................................23
Training Approaches..........................................................................................................25
Off the job Training ...........................................................................................................25
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EMPLOYEE ORIENTATION.......................................................................................26
COMPENSATION AND BENEFITS............................................................................26
Officers/Executives.........................................................................................................27
Clerical/No clerical ........................................................................................................27
GRIEVANCE MANAGEMENT...................................................................................32
STAFF CODE OF CONDUCT......................................................................................32
RETIREMENT...............................................................................................................33
SUCCESSION PLANNING..........................................................................................33
DRAWBACKS……………….…..
……………………………………………………..31
SUGGESTION…………..
……………………………………………………………..31
CONCLUSION……………………..
…………………………………………………..32
INTRODUCTION
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of Directors comes four departments or branches namely,
International banking, Commercial Banking, Corporate
Banking, Legal Cell. And the department of HUMAN RESOURES
comes between the board of directors and the four other
departments or branches. The HR department is responsible to
design and plan all the policies and procedures regarding
human resource. And all of these policies are being designed
for all the four branches, and then the branch manager
becomes responsible to implement these policies. There comes
recruitment cell, which is responsible for regulating and
monitoring the recruitment functions. It advertises new jobs,
makes direct and indirect recruiting, it supplies manpower for
work, handles interviews and testing procedures necessary for
hiring. The age of retirement at MCB is 60 years. At the time of
retirement employee is allowed to express his or her opinions.
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MCB Bank’s team of committed professionals is dedicated to
maintaining long term customer relationships through
outstanding service and convenience
MCB – AS AN ORGANIZATION
Understanding
At the core of it lies not only an achieving successful result, but the
curiosity to delve into the consumer’s insights for a better and simpler
lifestyle.
• Relationships
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making a home in their hearts continuously building relationships on
mutual trust and confidence. We understand that relationships about
expectations- our product and services are based on our customers
‘expectations. Be it financing for personal or business related needs.
Funds transfer and trade related facilities or need for different types of
deposit accounts, We would offers you a variety of products and
services customized to satisfy your individual needs.
• Technology
• Convenience
• Reliability
With a strong financial base, a promising team and the right resources,
we have proved to be a reliable partner indeed. We understands the
special needs of the business, trading and agricultural sectors. We
would strategically locate branches in small towns and cities and
provide them warm services and support they require to successfully
achieve their business objectives. We would strongly positioned to lead
the banking sector in the new millennium. You can feel safe in our
hands
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CORPORATE INFORMATION
Board of directors:
EXECUTIVES
Mr. S. M. Muneer
(Vice Chairman)
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ORGANIZATIONAL CHART
President
Board of
Directors
Human Resource
Development
Commercial
International Corporate
(consumer) Legal Cell
Banking Banking
Banking
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HIERARCHY OF MANAGEMENT
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HUMAN RESOURCE DEPARTMENT STRUCTURE
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Human Resource
Development
CMD
Credit Recruitment Cell Staff Affairs Budgeting
Management
Department
Purchase
Remune- Staff Recruitment
of new
ration Matters Expemnses
Premises
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As shown in the organizational hierarchy that under Board of Directors
comes four departments or branches namely, International banking,
Commercial Banking, Corporate Banking, Legal Cell. And the
department of Human Resource comes between the board of directors
and the four other departments or branches. Thus it is clearly showing
that Human Resource Department acts as a bridge or mediator
between the company’s core departments.
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Recruitment Cell
Staff Affairs
Budgeting
This department assesses the needs of budget required to run out the
HR functions. It allocates certain amount of budget each year to the HR
department. It is responsible for remuneration, purchasing and selling
assets, it provides finance to meet the expenses of staff matters, and it
is required to provide funds to the recruitment cell and staff affairs
departments for recruiting expenses and benefits respectively.
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workers needed to meet those objectives. Human resource planning
can be condensed into three steps:
(1)Assessing current human resources,
(2)Assessing future human resource needs, and
(3)Developing a program to meet future human resource needs.
Current assessment
It typically begins by doing a job analysis. This defines the jobs within
the organization and the behaviors that are necessary to perform those
jobs. What minimum knowledge, skill, and abilities are necessary for
the adequate performance? How do the requirements compare? These
are questions that job analysis can answer.
Information gathering through job analysis allows management to draw
up a job description and job specification. The former is a written
statement of what a jobholder does, how it’s done, and why it’s done. It
typically portrays job content, environment, and conditions of
employment; the job specification states the minimum acceptable
qualifications an incumbent (in office) must possess to perform a given
job successfully. It identifies the knowledge, skills and abilities needed
to do the job effectively. The job description and job specification are
important documents when managers begin recruiting and selecting
new hires. The job description is used to describe the job to potential
candidates. The job specification keeps the manager’s attention on the
list of qualifications necessary for and incumbent to perform a job and
assists in determining whether candidates are qualified.
Future assessment
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After it has assessed both current capabilities and future needs,
management is able to estimate shortages both in number and kind
and to highlight areas in which to organization will be overstaffed. A
program can then be developed that matches these estimates with
forecasts of future labor supply.
EMPLOYMENT CATEGORIES
• Contractual employees
o Annual renewal
o Fixed Contract
• Permanent employees
These are the full time employees working with MCB and the
organization relies heavily on these employees for the performance.
Permanent employees are further categorized as under:
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Officers Grade 1
Officers Grade 2
Officers Grade 3
o Executives
These employees are also contractual based but the only difference is
that their contract is automatically understood to be renewed at the
end of each year on performance.
Notes:
The ratio of contractual and permanent employees is 30 % and
70 % respectively.
• Total 5 % females are employed in MCB.
Work schedule
Notes:
• There is no over time policy and no pay will be given for
working after the prescribed time
Human resource decisions are very important. All HRM policies and
practices must comply with the laws and regulations of the country,
state, or province, in which the company operates. The HRM process
actually begins with human resource planning. It is where we will learn
that either the company will need to hire additional employees or, if
overstaffed, lay off employees (decruitment). Recruitment leads to
attempting to select. The best applicant from among those recruited.
Decruitment leads to having some people leave the organization.
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HRM’s primary issues can be seen as answers to six questions:
Regulatory
environment
Human Decruitment
resource
planning
Potential
job Selection Performance Rewards
candidates Recruitment
appraisal
Training
Organizational boundaries
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Vacancy Identification
Advertisement
Recruitment Sources
Selection devices
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Following are the selection devices, which are being adopted in
MCB.
1. The application
2. Test
3. Interviews
1. The application
Note:
Graduation is necessary for applying a job in officers rank
• A bond is singed by officers for working minimum of
3 years
• MCB hires 450 recruits per year
2. Test:
MCB while hiring a new person relies heavily on the test. “Even
Interview is considered to be a formality that is just fulfilled”, as
pointed out by one of the employees of the organization. The test is
based on objective and subjective approach and it includes questions
regarding
3. Interviews:
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• One person from Corporate Banking
• One person from HR department
• Academic Records
• Written and Verbal Skills
• Physical Appearance
Probation Period:
Reference Check:
After all the selection process is done the HR carries out a reference
check. It is mostly done in case of new employees to confirm their
position if they had been working with other organizations.
EMPLOYEE TRAINING
Importance of training
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Ideally, employees and managers alike should be continually
undergoing training to keep their skills current. In reality, few
organizations have not made a commitment to providing their staff
with continual learning, nor do employees voluntarily take the initiative
to seek out training opportunities. And OBL is one of them. Training
is provided on an “as-needed” basis, and the decision as to when that
need arises lies with individual managers. The manager while assessing
that whether the individual needs training or not ponders on the
following points:
• New equipment or processes are introduced that may affect an
employee’s job.
• A change is made in the employee’s job responsibilities.
• There is a drop in an employee’s productivity or in the quality of
his or her output.
• There is an increase in safety violations or accidents.
• The numbers of questions employees ask or their colleague’s
increases.
• Complaints by customers or co-workers increases.
EMPLOYEE DEVELOPMENT
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Training Approaches
Popular on the job training methods include job rotation and mentor
relationships. Job rotation involves lateral transfers that enable
employees to work at different jobs. Employees get to learn a wide
variety of jobs and gain increased insight into the interdependency
between jobs and a wider perspective on organizational activities. The
new employee works under the observation of an experienced worker,
who acts as a model whom the newcomer
Attempts to emulate. Both job rotation and mentoring apply to the
learning of technical skills. Interpersonal and problem solving skills are
acquired more effectively by training that takes place off the job.
There are a number of off the job training methods that are used to
make available to employees. The more popular in practice with OBL
are classroom lectures, videos, and simulation exercise. Classroom
lecture are well suited for conveying specific information. They can be
used effectively for developing technical and problem solving skills.
Interpersonal and problem solving skills may be best learned through
simulation exercise such as case analyses, experiential exercises, role
playing, and group interaction sections, complex computer models, are
another kind of simulation exercise, which in this case is used to teach
technical skills. Off the job training can rely on out side consultants,
local collage faculty, or in house personnel.
Notes:
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• Existing Employees are also called for to give lectures so that
they can better give the practical experience they are having.
• The job is rotated after an employee has worked maximum 3
years for a particular post
• Every branch has a residual auditor who monitors and judges the
employees and can inform the branch manager about his or her
activities and thus the job can be rotated
• The training comprises of normally six months, and there is a
mixture of on the job and off the job training. The employee is
first given lectures on International Banking for one month than
send to work (on job training), than again he is called back for
Commercial Banking lectures, and then sent for on job training
(one month), after this he is again called back for Corporate
Banking Training for lectures.
• The existing employees time period for training is different
according to the needs
3. Interpersonal skills
4. Problem solving skills
5. Ethical training
EMPLOYEE ORIENTATION
The new comer is informed about the company and its policies.
Following information is provided to the new comer:
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Besides interesting work, pay and benefits are the most important
incentives that companies can offer employees in exchange for
contributing to productivity, quality and customer service. Also, pay
and benefits are used to reward employees’ membership in the
company and attract new employees. The positive influence of new
work designs, new technology, and the quality movement on
productivity can be damaged if employees are not satisfied with the
level of pay and benefits or believe pay and benefits are unfairly
distributed.
Wages/Salaries Plan
It can save an organization cost involved with high turn over while
attracting, retaining and motivating capable and productive employees.
It is a means of measuring the relative value of a job to an
establishment; with this objective the most highly valued jobs to
receive the highest pay and lowest values to receive the least. Such
measurements can be used as a foundation for determining and
equitable wage/salary structure.
The jobs are being evaluated on the basis of mental and physical
efforts and accountability that is why the jobs are grouped in to grades
according to measurable difference in leaves of duties and
responsibilities.
Pay Structure
Salary chart:
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Allowance
Utility Allowance 10% -
Medical Allowance 3.5% 5.5%
Conveyance 1,000 600
Allowance
House Rent 45% 80%
Note:
• Contractual Employees are paid differently; this package
is only available to permanent employees.
Bonuses
• Officers:
o 4 bonuses per year, i.e. 4 bonus basic salaries
• Executives:
o 4 bonuses per year, amount as bonus: ½ of basic salary
• Clerical/Non- Clerical Staff;
o 3 basics and one gross salary
Loans
• Car Loan:
o The limit for providing this kind of loan is now increased to
RS 450,000
o The markup rate has been reduced as compared to
previous years from 3 to 4 %. The markup rate previously
applicable was 10 %, and now it is brought down to 6.5%
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• House Building:
o The house building loan is provided only to those who have
worked at least for 3 years with the bank regularly
o There is no limit for this type of loan
o The markup rate is 5 % for officers and executives
o The markup rate is free for clerical and no clerical staff
o In case of death of an employee before retirement the
whole of house building loan is waived off.
• Computer Loan:
o For officers the markup rate is 6.5%
o No markup rate for clerical and non clerical staff
Medical Facilities
Insurance
• The company from which MCB have insured their Group and
Branch insurances is Brinks Insurance Company
• Whole of the branch is insured and whole of the cash is also
secured
• Employees are not to worry in case of any mishap like theft
because cash is insured
• If death occurs, group insurance is also given apart from life
insurance
• The insurance company that insures the employees of MCB is
EFU Insurance.
Pension Plan
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• When pension is given, medical and house rent are still the part
of the pension
Vacations
• For officers:
o There are 12 casual leaves and 20 privilege leaves
• For Clerical/Non Clerical:
o 20 casual leaves
o 30 privilege leaves
Leave Encashment
• For Contractual:
o Leave encashment is refunded after 2 years.
Non-Cash Benefits
Overtime Facility
Provident Fund
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Stock Option
Traveling Benefits
Officers and Executives are allowed for the traveling benefits and the
expenses are being bared by MCB, only for official visit.
EMPLOYEE DEVELOPMENT
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GRIEVANCE MANAGEMENT
Handling Conflicts
“In MCB people as such do not have big conflicts”, as, pointed out by
one officer. But whatever conflicts are their Human Resource
Department tries to solve them out with best efforts. The procedure for
handling Conflicts is through Legal Cell. It also depends on the size of
the matter. At first Regional Manager tries to solve the problem itself
but if the matter is out of control Legal Cell is notified.
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In case of breach of conduct, following action will be taken by
the legal cell:
Note:
The employee can only be suspended maximum for seven days
RETIREMENT
SUCCESSION PLANNING
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Critical Analysis
Analysis is the most important part of the report, because it depends on the lead to good
recommendation for the improvement of the existing conditions, therefore in MCB I have
observed much of thing and have analyzed them to the extreme of my effect. MCB’s
critical analysis are as following.
• The main objectives of MCB is to provide improved service to the customer,
but now the bank seems to fail to achieve its objective, its lengthy procedures
as compared to new private or foreign banks cause problems for customers.
• MCB being an established bank does not face the high competition in the
market, in long run it will not be favorable for the bank.
• Top-level management is having a lot of influence in all decision-making, and
they always don’t consult the lower level management, therefore the top-level
management will not have adequate data about the problems organize at lower
level. So authority should be given to the lower level management as well as
responsibility.
• MCB being an established bank up to now the old traditional procedures have
adopted in most of the branches.
• MCB is not keeping pace with changing of new market environment, the main
reason beyond it the lack of new policies, and also the existing policies and
procedures are remained unchanged for a long period of time.
• In the advances Department of MCB, the process of loan sanctioning is very
lengthy compare to the other banks which affect the customers, some times
available customer in big need of money does not get loan in time only due to
this lengthy process.
• The advances activities in MCB is not free from political influence, the
politicians put on pressure from the sanction of the loan in the favor of their
own persons, there arise too problems due to this influence, first the bank
becomes unable to get good security due to which the loan recovery from such
persons become very hard, secondly these politicians do not use these loans for
productive purpose but they only use it for private purpose.
• The communication between the employees or from top to bottom or from
bottom to top is weak. Decision-making is also slow.
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• In the remittances department some time transfer of money telephonically
without the receipt of any legal document, although they pass test on phone
but it is vary risky, and there is a big chance of fraud.
DRAWBACK
SUGGESTIONS
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4. At the time of hiring there should be medical checkup of the
applicants.
5. For job evaluation ordering method should be used.
6. It is better to hire the foreign experts.
7. MCB should advertise in the advertising agencies.
8. MCB has opportunity to install ATM all over the country to
Provide 24 hour cash facility to its customers.
9. MCB has opportunity to online all its branches to facilitate
E-Commerce.
CONCLUSION
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prosperity, development and integrity. And with the
above mentioned sentences I think there is too fault
of the customers and in order to make the proper
working of the bank the customers should also
cooperate with the bank which will be really a good,
ambitious and diligent condition for the bank. And
then bank will be really in such a situation and
position to compete its competitors in the country as
well as on international level.
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