GENIUS

MC0702
MBA
HRM
National Bank of Pakistan
Main Branch Abbottabad

Internship Report
 Brief Introduction of the
National Bank of Pakistan
Overview of NBP
1. NBP Maintains its position as Pakistan’s Premier Bank
2. NBP is major business partner of Government of Pakistan
3. It has special emphasis on fostering Pakistan’s economic
growth through:
 Aggressive
 Balanced lending policy
 Brief Introduction of the
National Bank of Pakistan
Overview of NBP

4. NBP also handles treasury transactions for Government of

Pakistan as an agent to State Bank of Pakistan.

5. NBP has a network of over 1100 branches locally and 15

overseas branches.

( Source: www.nbp.com.pk
)
 Brief Introduction of the
National Bank of Pakistan
Business Volume

 Non Interest based income shows impressive increase of

about 3.7 billion PKR.
 Administrative expenses increased by 25% due to training
facilities development.
 Credit rating maintained at AAA by JCR Credit Rating
Agency.
 NBP has assets of 350 billion PKR.
 Brief Introduction of the
National Bank of Pakistan
Business Volume

 NBP follows the:

 International Accounting Principles,
 Islamic Accounting Principles and;
 Regulations of Institute of Chartered Accountants of Pakistan

(Source: National Bank Quarter Report December

2008)
 Brief Introduction of the
National Bank of Pakistan
Competitors

There are several other banks which are acting as the competitors to
National Bank of Pakistan. These Banks includes:
 The Bank of Khyber
 The Bank of Punjab
 Bank Alfalah Limited
 Muslim Commercial Bank
 Habib Bank Limited
 My Bank Limited
 Brief Introduction of the
National Bank of Pakistan
Competitors

 Allied Bank Limited

 Askari Bank
 ABN Amro Bank
 Al-Baraka Islamic Bank
 Standard Chartered Bank
 CITI Bank
 Mezaan Bank
 etc
 Organizational Hierarchy
Chart
President

Board of Director

Member Executive Board

Regional Chief

Zonal Chief

Manager
 Organizational Hierarchy
Chart
Regional Office Abbottabad

Regional management Team

Regional Business Chief

Regional Operational Chief
Regional Risk Mgt Chief
Regional Compliance Chief
Regional HR Chief
 Training Program

During my internship in NBP, I followed the training

program in the following departments:

 Deposit Department
 Billing Department
 Accounts Department
 Human Resource Department
 Training Program
Tasks in Deposit Department

In Deposits Department, I received training about:

 How to collect Deposits from Customer
 How to Pursue Customers
 Introduction to Customers
I worked on following types of Deposits in NBP:
 Current Deposit
 PLS Account
 Fixed Deposit
 Training Program
Tasks in Billing Department

In Billing Department, I received training about:

 How to perform Billing of Receipts
 How to pursue Billing Account of Account Holder
 How to post Balance after Billing
 Functions of Billing Department
 Training Program
Tasks in Billing Department

I worked on following types of Bills in National Bank of

Pakistan:

 Inward Bills for Collection ( Demand Drafts)

 Outward Bills for Collection ( Treasury Bills, Documentary
bills, Pay Orders)
 Training Program
Tasks in Accounts Department

In Accounts Department, I received training about:

 How to maintain journal of Accounts

 How to maintain vouchers system
 Functions of Account Department
 Training Program
Tasks in Accounts Department

I worked on following types of Accounts in National Bank

of Pakistan:

 General Ledger
 Statement of Daily Affairs
 Cash book OR Cash cum Day book
 Transfer Book
 Income and Expenditure Ledger
 Structure of HRM
Department

Departmental hierarchy
Vice President
Human
Resources

Manager Total Manager Manager Labor

Compensation People and OD Relations
 HRM Process in the
Organization
Human Resource Management Process
in National Bank of Pakistan

National Bank of Pakistan has existing Human Resource

Department, which operates to:

 Increase the skills of the existing employees

 New recruitment and hiring in the organization
 HRM Process in the
Organization
Human Resource Management Process
in National Bank of Pakistan

The HRM process consist of following interrelated

activities:
 Recruitment and Selection
 Training
 Compensation and Supervision
 HRM Process in the
Organization
Human Resource Planning & Forecasting

For HR Planning & Forecasting, we conduct organizational

study to:
 Determine the organizational Goals
 Scan the organization environment
 Set Strategic Goals
 Formulate the Strategic Plan
 Course of Action is Designed
 HRM Process in the
Organization
Human Resource Planning & Forecasting

Steps of Planning Process in NBP:

 Determining the Objectives
 Defining required Skills to meet objectives
 Determine additional Human Resource requirements
 Develop action to meet the anticipated Human Resource
Needs.
 HRM Process in the
Organization
Human Resource Planning & Forecasting

Forecasting:

Zero-Base Forecasting:
This method uses the NBP’s current level of employment as
the starting point for determining the future staff needs for
the National Bank of Pakistan.
 HRM Process in the
Organization
Human Resource Planning & Forecasting

Forecasting:

Bottom-Up Approach:
In this method each successive level of NBP start with
lowest, and forecast its employee requirements in order to
ultimately provide an aggregate forecast of employment
needs.
 HRM Process in the
Organization
Human Resource Planning & Forecasting

Forecasting:

Use of Mathematical Model:

Mathematical models defines the relationship between the
demand and number of employees needed.
Simulation:
It is experimenting with real world situation through a
mathematical model representing that situation.
 HRM Process in the
Organization
Employee Recruitment & Selection
CV screening and Short listing Written Entry Test

Final Panel / Group Interviews Initial HR Interviews

Selection and Offer

 HRM Process in the
Organization
Training and Development
 NBP has development group called “organizational
development and training group”.
 Four staff colleges are operating under this group in
Lahore, Karachi, Islamabad and Peshawar.
 The training is mostly carried through seminars workshops
and mostly on the job training.
 At the time of induction of the employee he is given the
initial training at Institute of Banking Pakistan (IBP) after
that they are posted in the field on their respective jobs.
 HRM Process in the
Organization
Training and Development

NBP follows two forms of Trainings:

 First is related to the training and development of new and

mid level employees
 Second is the training and development for long term plan,
regarding the career development of higher level
employees
 HRM Process in the
Organization
Training and Development

NBP applies on-job and off-job strategies to train its

employees.

NBP training and development academy advises job rotation

to ensure and facilitate the production of all-rounder
employees.
 HRM Process in the
Organization
Training and Development

Training Plan start at least 2 months before the

commencement of the new year, in order to make it easy
for the socializing and orientation of the new employees.

NBP believes in pre/post tests for the existing employees and

post training tests for the new employees.
 HRM Process in the
Organization
Performance Management
In performance Management factor there are certain aspects
about which NBP takes special care, these are:

 Professional Knowledge
 Improving corporate culture
 Decision Making Ability
 Ability to visualize and plan
 Ability to act on emergent situation
 HRM Process in the
Organization
Performance Management

 Ability to implement decisions

 Ability to guide and create team work
 Communication skills
 Customer Relationship
 Acquaintance with technological improvements
 HRM Process in the
Organization
Performance Management
Performance Evaluation:

 An employee do not has any right or access to the Annual

Confidential Report ( ACR), but s/he is informed, so that
s/he can rectify/improve his/her shortcomings if any.
 After ACR paper work, it is entered into database by HR.
 On the basis of the evaluation, benefits are offered in terms
of promotions, rewards etc
 HRM Process in the
Organization
Compensation & Benefits
Different types of compensations includes:

 Medical insurance
 Sick leave
 Vacations
 Provident and pension funds
 Promotions
 HRM Process in the
Organization
Compensation & Benefits

 Overtime pay
 Profit sharing

 Bonuses

 Travel / Meal / Housing Allowances

etc
 HRM Process in the
Organization
Career Management
Promotion:
The criteria for promotion for specified job is usually the merit
cum seniority base. Person is eligible for promotion if:
 Satisfactory Record of service
 Meets the criteria for promotion
 Clear recommendation for his/her promotion in ACR
If there are any departmental proceedings against him or any
penalty within last 3 years, then s/he will not be promoted.
 HRM Process in the
Organization
Career Management
Demotion/Expulsion:
On joining, employee is provided with the organizational rules.

 A person is demoted to lower rank if the performance required,

remains same for 3 years without any improvement.

 A person may be expelled on course of bad conduct in law,

convicted by law or fraudulent activities.
 HRM Process in the
Organization
Career Management
Resignation:
 When employee wants to resign, he has to submit his/her
resignation in HR Department in 1 advance. If he fails to
inform 1 months prior to resignation, then he has to pay 1
months gross salary amount.
 After employee put his resign, HRD query all branches if this
person has any transactions left with any branch or not? If not,
head of HRD approves his resign and send that to employee’s
branch manager.
 HRM Process in the
Organization
Career Management
Retirement:
 HR Department writes to employee, CC to line manager,
advising retirement date.
 Line manager arrange informal meeting with employee to
discuss plans and confirm right to request continued working.
 Line manager writes to employee confirming meeting, CC HR.
 Employee chooses to retire at 60 Years.
 Normal retirement procedure applies.
 HRM Process in the
Organization
Labor Management Relations
The society for labor welfare is formed within NBP, which
functions with the help of Management, so form a good
relationship and provides:
 Immediate relief to any accidental causality.
 Some benefits to on job deceased.
 Arranges variety shows for the families of employees.
 Arrange Educational funds or benefits for the employees.
 Critical Analysis

 Improve General Banking Facilities

 Change the mind of the old employees to adapt IT
 Unclear Brand image of the Bank.
 People’s perception that its Government Bank with lack
of facilities
 Customers wants fast and innovative service.
 HR Management is less existent.
 Motivational Tools are not followed.
 Promotion of employees is not done regularly.
 SWOT Analysis of NBP

STRENGTHS:

 Nationalized Bank
 Largest Branch Net Work
 Strongest Capital Structure
 Monopolistic hold
 Public Confidence
 Experience of operation
 Easy access to the customers
 SWOT Analysis of NBP

WEAKNESSES:
 Poor performance of the workers
 Untrained staff and weak customer handling.
 Favoritism and Nepotism
 Lack of coordination
 Unpleasant working environment
 Traditional Approach
 Lack of IT Infrastructure & less No. of ONLINE
Branches
 Burden of running extra number of branches.
 SWOT Analysis of NBP

OPPORTUNITIES:

 Electronic Banking
 Leasing Business
 Network in foreign Countries
 Gain Economies of Scale
 SWOT Analysis of NBP

THREATS:

 Globalization
 Increase in Competition
 Privatization
 Political instability in the country
 Lack of consistency in Government's policies
 Conclusion
After completing my internship, I draw following
conclusions:
 NBP’s staff is not well trained comparatively
 HR procedures are well placed in books but not being
practiced fully
 NBP’s HR Management is not working good.
 NBP is utilizing large amount on administrative cost
 NBP’s process of sanctioning advance is lengthy
 NBP’s customers handling is poor.
 NBP’s record on papers is great, but it lacks latest
banking techniques and technologies.
 Recommendations

My Recommendations regarding NBP are:

 Employees should be involved in decisions affecting
them.
 Promotions and reward systems should be fair.
 Introducing new and efficient products.
 Total quality approach should be used.
 Training should be according to assessed needs.
 Creation of enhanced performance appraisal system.
 Job rotation and job enrichment for employees.
 Recommendations

 Improving communication skills

 Aggressive marketing strategy in banking
 Institutionalization of the Human Resource Management
 Research and Development facilities must be improved.
 General working conditions and environment must be
improved.
 New talent/professionals should be hired
 Public relation desk should be established in each and
every branch.
Thank You !