IN THE NAME OF ALLAH

WHO IS THE MOST

GRICIOUS
AND
THE MOST MERCIFUL

1
 ACKNOWLEDGEMENTS

All the praises and thanks to Almighty

Allah whose unlimited mercy enabled us
to design the project and submit this
dissertation to fulfill the requirements of
Principal Of Management.

We express our heartiest thanks to MR

ADIL ZAMAN our project supervisor for
this guidance, inspiration and healthy
criticism towards completion of the
project effectively and comprehensively,
without this it would always impossible
for us to complete this task successfully.

Fantastic Shell

2
 This Dissertation Is
Dedicated to Our parents and teachers
who always encourage and inspire us to
learn the Holy Quran, Sciences and
business techniques

3
 Project Report

M SAAD SHAUKAT
BAU-F07-006

THE UNIVERSITY OF LAHORE

ISLAMABAD CAMPUS

4
 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

Today MCB is leading the way in banking technology and

setting new standards for the banking industry; penetrating
into the local market, listening to the needs of the people and
educating them of simple financial products and services that
create both value and convenience. Whether it is the 24 hours
cash convenience of our ATM network or the easy availability
of financing for your purchases, complex business financing
requirements or simple opening of account, we have tailored
its products and services to make your life easier. Under Board

6
 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 has emerged as one of the foremost-privatized financial

institutions in Pakistan endeavoring to gear up its operations to meet
the demands of the future.

MCB – AS AN ORGANIZATION

Understanding

Today, banking all about understanding. Understanding the

contemporary and localized markets. It’s about talking to the
consumers; reaching out to them; giving them quality time; it’s about
focused approach and targeted results. It’s about communication to
foster lasting relationships. It’s about working as a team; having no
barriers, no boundaries. At MCB, everything we do is rooted in our
values and true understanding of this diversified market.

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

MCB would fostered strong bonds with its customers. We would

understand them; their needs. They would feel comfortable with MCB;
it’s their bank; it responds to them; listens to them; partners with them;
grows with them. At MCB, banking is all about being there for people,

8
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

At MCB, technology has a direct relation with your needs; it is a means

for creating value and convenience for the customer. We have invested
heavily into strengthening its technology backbone. MCB’S strength lies
in providing a technological base at the grass roots level of the society
with a challenge to educate and assimilate such systems across vast
cultural and economic backgrounds.

• Convenience

Convenience is what the customer is looking for; and this is what we at

MCB are continuously striving to provide. Whether it is the 24 hours
cash convenience of our ATM network or the easy availability of
financing for your purchases, complex business financing requirements
or simple opening of account, MCB has tailored its products and
services to make your life easier. We know the particular needs of its
diverse customer base and continuously develops products and
services that fulfill these needs.

• 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:

Mr. Tariq Raffia

Sheikh Mukhtar Ahmed
Mr. Mohammed Arshad
Mr. Shahzad Saleem
Mr. Raza Mansha
Mr. Sarmed Amin
Mian Umer Mansha
Mr. Mushtaq Ahmed Malik
Mr. Mohammed Aftab Manzoor
President & Chief Executive .

EXECUTIVES

Main Muhammad Mansha

(Chairman and chief executive)

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

12
HUMAN RESOURCE DEPARTMENT STRUCTURE

13
 Human Resource
Development

CMD
Credit Recruitment Cell Staff Affairs Budgeting
Management
Department

CAD RAM Loans Benefits

Purchase
Remune- Staff Recruitment
of new
ration Matters Expemnses
Premises

ROLE OF HUMAN RESOURCE DEPARTMENT IN

MCB

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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.

The HR department of MCB is being head by Vaqas Ahmed Bhatti.

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. The HR department
makes all policies ranging from recruitment till retirement. It is
responsible to carry out and propose feasible employee benefits plan,
feasible both in terms of company and in terms of employees. It also
gives a lot of importance to training needs of employees.

Any branch, which has any problem, will go to the HR department

directly and HR will solve that problem. The HR department is involved
and relied upon heavily when making corporate planning.

Human Resource Department

With in the HR department come several different departments as

shown in the hierarchy of HRD. Each department is further elaborated
below:

Credit Management Department

Credit Management Department is the most earning department for

any bank, and it is also true for MCB. Special appointments are made in
CMD like hiring of Credit Management Officers. These persons are
either Charted Accountants or MBA’s from top universities. Their job is
to maintain security documents and process all the documents of each
branch in the head quarter and to assess the risk factors to the bank.

Basically this is not be included in HR hierarchy, but the reason MCB

has this department under HRD is because the head quarter of MCB
directly hire these persons. Only HR department has control over them
and others have no say in this.
Two other departments working under CMD are:

• Credit Administration Department

• Risk Asset Management

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Recruitment Cell

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.

Staff Affairs

The staff affairs department is concerned with regulating the policies

regarding employees. It handles all the affairs of the employees. And it
works for the benefits of the employees.
It further has two departments one is loan and the other is benefits.
The loan department considers making policies for giving loan to
employees on an agreed markup rate. It works for the welfare of the
employees. The Benefits department makes all policies for benefiting
the employees like salary packages, provident fund contribution,
medical allowances, conveyance allowances, compensation etc.

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.

Budget Allocated to Human Resource Department

MCB emphasizes on providing maximum benefits to the employees. So

a fair percentage of budget is allocated to the department. The
percentage changes accordingly from year to year based on activities
HR is performing.

HUMAN RESOURCE PLANNING

Human resource planning is the process by which management

ensures that it has the right number and kinds of people in the right
places, and at the right times, who are capable of effectively and
efficiently completing those tasks that will help the organization
achieve its overall objectives. Human resource planning, then,
translates the organization’s objectives into the quantity and mix of

16
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

Future human resource needs are determined by the organization’s

objectives and strategies. Demand for human resources is a result of
demand for the organization’s products or services and levels of
productivity. On the basis of its estimate of total revenue, management
can attempt to establish the number and mix of human resources
needed to reach those revenues. This information is then adjusted to
reflect gains or losses in productivity based on changes in technology.
Automated equipment, computerization, reengineering, and process
redesign have made it possible for companies to generate greater
outputs with less labor input.

Developing a future program

17
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

The privatization of MCB in 1991 has led to decrease the number of

employees working in the organization. In 1991 around 14,000
employees were working. In 2002 the total number of employees
working in the organization was 10,926. MCB after privatization has
gradually decreased their number of employees working with them.

There are three types of employees working in MCB:

• Contractual employees

The contract of these employees is renewable each year. MCB further

have contractual categories of employees namely,

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:

o Clerical /Non clerical

o Officers

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  Officers Grade 1
 Officers Grade 2
 Officers Grade 3
o Executives

• Appraisal Based Employees

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.

WORKING HOUR POLICY

• Working hours are from 09:00 am to 05:00 pm for weekdays

• On Saturday the working hours are from 09:00 am to 1:45 pm

Work schedule

Common Core Lunch Break Common Core

09:00 am–1:00 pm 1:00pm-2:00pm

2:00pm-5:00pm

Notes:
• There is no over time policy and no pay will be given for
working after the prescribed time

RECRUITMENT AND SELECTION

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.

19
 HRM’s primary issues can be seen as answers to six questions:

What laws and regulations shape HRM practices?

What are our HRM needs?
Where do we find qualified job candidates?
How can we choose the best-qualified job candidates?
How can we ensure employee skills are current?
What options exist to handle overstaffing?

Regulatory
environment

Human Decruitment
resource
planning
Potential
job Selection Performance Rewards
candidates Recruitment
appraisal

Training
Organizational boundaries

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Vacancy Identification

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.

Branch Regional General Group HRD

Manager Manager Manager Head

Advertisement

The advertisement is done in newspapers and the name of the

organization is mentioned. The applications are only invited through
Post Office Box number.

Recruitment Sources

Recruitment is the process of locating, identifying, and attracting

capable applicants. Which sources management uses depends on the
type or level of the job and the state of the economy. The greater the
skill required or the higher the position in the organization’s hierarchy,
the more the recruitment process will expand to become a regional or
national search. There are two sources of recruitment:

• Internal Recruitment (Negligible)

o Current Employees
o Former Employees
• External Recruitment (Major)
o Direct Recruitment (Advertisements)
o Indirect Recruitment
o Employee Referrals
o College Recruiting
o Customers

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

MCB requires handwritten applications from a candidate who is

applying for the job. The reason for requiring hand written application is
to check and verify it when the candidates are giving tests. After
getting applications the HR shortlists the candidates. The short-listing
again is done through checking the hand written applications.

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

basic general knowledge, computer literacy, business and accounting.

A person scoring good in test has 85% chances of getting selected.

3. Interviews:

The interview panel consists of 5 members. And the interview is not

very formal; they have an informal type of interview. And they defined
the word Informal as, where the candidate is made feel easier while
answering questions.
The interview panel/committee consists of 5 members as already
mentioned, and these members include following persons from
different departments:

• One person from Board of directors

• One person from International Banking
• One person from Commercial/Consumer Banking

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 • One person from Corporate Banking
• One person from HR department

The main consideration in interview is given to:

• Academic Records
• Written and Verbal Skills
• Physical Appearance

Probation Period:

The probation period of MCB is from 4 months to maximum of 9

months.

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

Present –oriented training, focusing on individuals current jobs. Training

is a learning experience in that it seeks a relatively permanent change
in an individual that will improve the ability to perform on the job. We
typically say training can involve the changing of skills, knowledge,
attitude, or behavior. Training can make a real difference in an
organization’s bottom line. And OBL strongly believes in training an
employee.

Importance of training

Money spent on training can provide big returns to the company.

Intensified competition, technological changes, and the search for
improved productivity are increasing skill demands on employees.
Skills deteriorate and can become obsolete.

Assessing training needs

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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

Future-oriented training, focusing on the personal growth of the

employee. It focuses on the jobs in the organization. OBL ensures that
employees have the necessary skills to perform future jobs. Because of
the new technology and the quality movement in this field, OBL
believes in work performed by teams. Hence, managers and employees
develop skills to be successful in a team environment. Because many
employees value work that is personally rewarding and does not
interfere with non-work activities, the HR management also helps
employees identify their work interests and goals and cope with issues
such as balancing work and family roles. Human Resource deals with:

• Ensuring that employees have the skills needed to perform their

current job
• Preparing employees for future work roles
• Identifying employees’ work interests, goals and values and other
career issues

Employee development is a necessary component of a

company’s efforts to improve quality, to meet the challenges of
global competition and social change, and to incorporate
technological advances and changes in work design.

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Training Approaches

The Most popular training and development methods used by

organizations can be classified as either on-the-job or off-the-job
training. This preference can be attributed to the simplicity and,
usually, lower cost of on the job training methods. However, on the job
training can disrupt the workplace and result in an increase in errors as
learning proceeds. Also some skill training is too complex to learn on
the job. In such cases, it takes place outside the work setting.

(1) On the job training:

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.

Off the job Training

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:

• OBL has employed permanent lecturers. The principal of Staff

College is the Senior Vice President.

25
 • 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

OBL works on the following types of training:

1. Basic literacy skills

2. Technical skills

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:

• The new comer is given copies of necessary documents

• He is informed about the department he will be working in
• He is informed that whom he has to report
• His immediate supervisor

Information Overload is avoided and the working policies are

introduced gradually.

COMPENSATION AND BENEFITS

26
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

Wages and Salaries administration is one of the most important

Managerial function, it deals with all aspects of employee’s
compensation. Wages/Salary is the remuneration paid to the
employees in return for their services.

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.

MCB has determined its Wages/Salaries structure to attract, retain and

motivate quality employee keeping in view the local market and
financial commitment of the establishment.

Pay Structure

MCB is fulfilling the minimum wage rate as required by law. Following

are the components of pay structure given to employees in RS. The
basic salary differs from job to job. All the percentages in the table
given below are of Basic Salary. Minimum Basic Salary is RS 4,260

Salary chart:

Components Officers/Executives Clerical/No clerical

Basic Salary As per grade As per grade
Cost of living 32.5% 15%

27
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.

Following are the benefits given to employees by MCB:

Bonuses

When MCB was nationalized following amount of bonuses where paid to

the employees:

• 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

But after privatization this systems is removed and replaced with

percentage system. And now bonuses are given once a year based on
performance evaluation.
• At grade A+ 25%
• At grade A 20 %
• At grade B 15%
• At grade C 10%

Loans

Loan facility is given only to those whose basic salary is equal to or

more than RS. 8,000. There are three types of loan given to employees:

• 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%

28
 • 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

• Previously medical facility was provided to the whole family of

the employee including parents, but now it has just been
confined to the employee’s wife and children.
• MCB has no prescribed hospital for employees, and employees
can go as per their wishes
• The bill goes to the Medical Wing and normally whole of the bill
is reimbursed to the employees under normal circumstances

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

• Pension is for permanent employees and is given only to those

workers who have worked for more than 10 years
• It is 8.33 % of the gross salary

29
 • 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 permanent employees:

o Leave encashment is given at the time of retirement only
for privilege leaves.
o Leaves will be accumulated up to 90 days

• For Contractual:
o Leave encashment is refunded after 2 years.

Non-Cash Benefits

• MCB gives two types of non-cash benefits in the form of

increments and cash prizes

Overtime Facility

• MCB provides no overtime facilities to its employees

Provident Fund

• Equal contribution is made both from employer and employee

• The amount contributed towards provident fund is 8.33% of basic
salary and the same amount is also contributed from employer
• Loan facility can be taken against provident fund not exceeding
80%

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Stock Option

The employees of MCB are allowed to take shares

but these shares are offered only at market value no
discount is given to them. But while giving shares
first preference is given to the existing employees.

Traveling Benefits

Officers and Executives are allowed for the traveling benefits and the
expenses are being bared by MCB, only for official visit.

Advance Salary Payment

Employees of MCB are entitled to receive 4 months basic salary as

advance

EMPLOYEE DEVELOPMENT

MCB ensures that employees have the necessary skills to perform

current and future jobs. Because of the new technology and the quality
movement in this field, MCB believes in work performed by teams.
Hence, managers and employees develop skills to be successful in a
team environment. Because many employees value work that is
personally rewarding and does not interfere with non-work activities,
the HR management also helps employees identify their work interests
and goals and cope with issues such as balancing work and family
roles. Human Resource deals with:

• Ensuring that employees have the skills needed to perform their

current job
• Preparing employees for future work roles
• Identifying employees’ work interests, goals and values and other
career issues

Employee development is a necessary component of a

company’s efforts to improve quality, to meet the challenges of
global competition and social change, and to incorporate
technological advances and changes in work design.

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 GRIEVANCE MANAGEMENT

Grievance is any dissatisfaction or feeling of injustice in connection

with one’s employment situation that is brought to the attention of
management.

Handling Conflicts

Personal conflicts occur when two or more parties have opposing

attitudes or approaches to a particular situation, issue or person.
Obvious sources of conflict range from a difference of opinion,
problematic working conditions or unrealistic work expectations
through discriminatory behavior, to poor communication or non-
compliance with organization norms or values.

Conflict can occur between a member of staff and the manager,

between two or more members of a team, or between departments,
sections or managers. The options available to the HR management are
to apply grievance procedures, disciplinary measures or mediate
between the parties.

“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.

STAFF CODE OF CONDUCT

The staff code of conduct is designed and implemented to ensure that

the company operates efficiently and effectively. Following are some
of the requirements that needs to be ensured by the employee:

The employee shall not disclose any confidential information of

the organization to any third party.
The employee are required to be at office in time & punctual
• On termination of service the employee will immediately return
to the organization electronic information, records, papers or
other property in its possession belonging to the organization
• In case of leaves and absence from work, employees are required
to follow the formal procedure.

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In case of breach of conduct, following action will be taken by
the legal cell:

Legal Cell will be notified about the misconduct of the

employee and it will take action against the employee.
If necessary the employee will be suspended with pay hold till
the inquiry is completed.
Explanation call will be given to the employee to prove his part
of point.
If found guilty the employee will be terminated by the Bank.

Note:
The employee can only be suspended maximum for seven days

RETIREMENT

The age of retirement at MCB is 60 years. At the time of

retirement employee is allowed to express his or her opinions.

SUCCESSION PLANNING

The succession planning is done when the employee is leaving.

An official at MCB informed us that it is more or less ‘eyewash’.
The Bank on its own will appoints some one at his or her place.
The person who is leaving have no say it this. The Bank as per
wishes appoints a person who has contacts.

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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

1. MCB is only advertised the job in only newspaper.

2. MCB are not accepting online C.V.
3. MCB provides no overtime facilities to its employees.
4. There is no medical checkup at the time of hiring.
5. Only point method is used for job evaluation.
6. In this the foreign experts are not hired.
7. They are not advertising in the advertising agencies.
8. Overstaffing is one of the major problems of MCB. Now MCB is
offering
different golden handshake scheme to reduce its employee. This
can cause
negative impact on working employee.
9. MCB is reducing its branches. This can cause negative effect on
working
employee.
10. In some potential areas ATM is not present.

SUGGESTIONS

1. MCB should have to advertise in internet.

2. There should be acceptance of online CVs.
3. Overtime facilities should be given to the employees.

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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

It is evident from this report and the financial

statements of MCB that it is making progress by
leaps and bounds. The profits of MCB have grown
considerably during the last few years and this trend
is expected to continue into the future. Therefore, we
conclude that MCB has a very prosperous present
and future, which assures the shareholders of wealth
maximization. Side by side of it I think that if bank
would be able to cover and control on the above
mentioned recommendations then it would be in such
a situation that will really lead it towards the road of

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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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