FINAL PROJECT

STRATEGIC HUMAN RESOURCE MANAGEMENT

BILAL ASHRAF
AHSAN MEHMOOD SHAMI
UMER FAROOQ
RAZA IFTIKHAR

We are going to talk about:

Company Profile

Vision & Mission Statements

Companys Management

Products & Services

Organizational Chart

Role of Human Resource Management

We are going to talk about:

Functions of HR at MCB

Recruitment & Selection

Training & Development

Performance Management

Diversity Management at MCB

Organizational Strategy & HR strategy

Questionnaire Survey of HR Division

Conclusion & Recommendations

Company Profile

MCB is one of the leading banks of Pakistan. It is

incorporated in 1947 MCB soon earned the
reputation of a solid and conservative financial
institution managed by expatriate executives. In
1974, MCB was nationalized along with all other
private sector banks following the Bank
Nationalization Act 1947.

The Bank has a customer base of approximately 4

million and a nationwide distribution network of
1,700 branches, including Islamic banking
branches, and ATMs.

Vision & Mission Statements

VISION STATEMENT:
To be the leading financial services provider, partnering with our customers
for a more prosperous and secure future.

MISSION:
To become the preferred provider of quality financial services in the country
with profitability and responsibility and to be the best place to work.

MISSION STATEMENT:
We are a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our
customers. In doing so, we ensure that our shareholders can invest with
confidence in us.

Companys Management

The Company is managed by a Board of Directors

comprising a Chairman, a Managing Director and 11
other Directors. The day-to-day functions of the
Company are looked after by the Managing Director
assisted by Executive Vice Presidents, Vice
Presidents/ Division Heads.

Various divisions headed by Vice Presidents/General

Managers are broadly divided into project
management and specialty groups. The project
management divisions are responsible for the
management of projects and the specialty divisions
are centers of excellence for various disciplines.

Products & Services

DEPOSIT ACCOUNTS

BASIC BANKING ACCOUNT

PAK RUPEE CURRENT ACCOUNT

PAK RUPEE SAVINGS ACCOUNT

PAK RUPEE TERM DEPOSIT

FOREIGN CURRENCY SAVINGS ACCOUNT

FOREIGN CURRENCY CURRENT ACCOUNT

SMART DOLLAR ACCOUNT:

BUSINESS ACCOUNT

LIABILITY PRODUCTS

MCB BUSINESS SARMAYA

MCB CAR4U

MCB PYARA GHAR

EASY PERSONAL LOAN

MCB MASTER CARD:

Products & Services

PAY ORDER

Demand draft (D.D)

MCB Rupee Traveler's Cheque

ONLINE SERVICES:

MCB ATM Services

MCB MOBILE BANKING

MCB CALL CENTER:

MCB SMART CARD

MCB DEBIT CARD

VIRTUAL BANKING

Organizational Chart
President
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vive President
Assistant Vice President
Grade I
Grade II
Grade III
Assistant
Clerical Staff
Cashier
Technical Staff

Non-Clerical Staff
Messenger
Dispatch Rider

Organizational Chart
Head Office

Divisional head Regional Head

Zonal Head
(SEVP)
(EVP)

Regional Office

(VP)

Branch Manager
(VP, AVP)

Zonal Office

Branch

Role of Human Resource Management

MCB has on its rolls some of the best

professionals in various fields of banking
services. It has also been able to attract a large
number of Pakistani experts from abroad. MCB is
thus able to offer the services of highly qualified
and experienced professionals. At present, MCB
has staff strength of 9946.

MCB set out to make its mark in the field of

banking services with only a handful of people in
1973, but had to expand very rapidly to meet
the enormous work load it was able to generate
for itself. Today, it has on its rolls staff strength
of 9946 approximately.

Functions of HR at MCB
Recruitment & Selection

Job Analysis

The process for determining the duties and skills

required for the job and the kind of person who should
be hired fir it.

Job Description

Job Specification

A list of a job duties, responsibilities, reporting

conditions, and supervisory responsibilities-one product
of a job analysis is being prepared by the HR experts.

A list of a jobs human requirements that is the requisite

education, skills, personality, and so on another
product of a job analysis.

Approaches

Interviews

Annual Report

MCB Web Site

Functions of HR at MCB
Recruitment & Selection

RECRUITMENT PLANNING

With all the divisions of MCB recruitment of employees is

done on the need basis by the Vice President of the
concern division with the approval of the Managing
Director

SOURCES OF RECRUITMENT

Internal sources

External sources

TESTING AND SELECTION PROCESS

MCB has two types of staff as professional staff and nonprofessional staff. Test tool is only used for the induction
of professional staff. MCB uses the following types of
tests:

Initial Test (via NTS).

Panel interviews

Medical Test (After selecting the candidates)

Functions of HR at MCB
Recruitment & Selection

Selection

After the recruitment and testing process so as to screen the

candidates knock out sort of interview is started. MCB conducts
only two types of interviews.

Walk-in Interviews

Panel Interviews

RECRUITMENT PROCESS

Advertisement

Selection

Equal Employment Opportunity

EMPLOYMENT CLASSIFICATIONS

Professional Employee

Non-Professional Employees

Regular Employees

Contract Employees

INTERNSHIP PROGRAM

Functions of HR at MCB
Training & Development

MCB provides employees adequate training to do their job safely and

competently. They believe training is a two-way process. They encourage
employees to participate and to highlight any gaps in their own skills or
knowledge they believe they have.

TRAINING PROCESS/POLICY

Nominations for training are made in all cases by the Vice-President/Division Head under his/her signature
or his/her authorized representatives signature. Until absolutely necessary, the division heads cannot
nominate a professional for more than two training exposures in a month.

Nominations are received by the HR Unit at least 2 days before the course is scheduled to commence. If
nominations are not received within the time mentioned, the HR Unit assumes that the Division Head does
not wish to make a nomination.

HR Unit announces a one (1) month training schedule showing core content and the target audience in advance
to enable Divisions to adjust the work of prospective nominees

The training group size for technical lectures, etc., ranges between 25 to 40 persons. For Management and
other training courses, the maximum group size is20 persons.

Functions of HR at MCB
Training & Development

TRAINING PROCESS/POLICY

Once a nomination has been made and accepted, and the nominee is attending a course,
he/she cannot be called away to attend to normal functions. Only in the most exceptional
circumstances, to be decided by the concerned division head/VP, can the nominee be allowed
to leave the training course.

The official Certificate of Course Attendance and Completion is given only to those who have
attended for the full duration of the course.

Unless otherwise notified full day course timings are from 6 to 8 hours, with 45 to 60-minute
break for lunch and prayers. For half-day training programs, duration is from 3 to 4 hours,
unless otherwise notified by the Human Resources Unit.

All trainers and training courses are evaluated by all participants and Head HR Unit. The
Evaluation forms to be used for this purpose are issued by the HR Unit.

If circumstances dictate, training courses can also be held on Saturdays, following the same
timings mentioned above.

The record of these trainings is maintained by the HR Division in the training database.

Participation of MCB professionals in seminars, conferences, both local and foreign is also
handled by HR Division.

Functions of HR at MCB
Training & Development
TRAINING STRATEGY

MCB as a forward looking organization has visualized a training

strategy that is essentially focused on:

Improve technical knowledge & abilities of professionals.

Enhance skills in Managerial and support Competencies amongst

professionals.

Transfer the knowledge and experience of senior professionals to juniors.

Improve upon the level of inter-divisional working.

TRAINING EVALUATION FORM

Name (optional)___________________ Designation/Grade____________________ Division_____________________
Lecture/Course title________________ Course Conductor_____________________ Date and Duration_____________

Please rate on the scale of 1 to 5

(1=Worst

5=Best)

CONTENT
Comprehensiveness

Understandability

Related Examples

Helpful for my Personal Development

TRAINER
Clarity of Communication

Trainers Subject Knowledge

Response to Questions

Contents Explanation

Trainers Punctuality

Participants Involvement

Effectivity of Training Method

Training tailored according to scope of work

Preservation of Learning Environment

Deliverables Rating
Did the program meet its stated objectives?

Did the program objectives meet your needs?

(1=Worst

5=Best)

COMMENTS OR SUGGESTIONS:

_____________________________________________________________________________________
What Improvement will you be able to bring in your work after this training?
______________________________________________________________________________________

Functions of HR at MCB
Performance Management

In MCB Performance Appraisal is a function not actually handled by

the HR Division instead the Coordination & Administration Division
handles the appraisals.

PERFORMANCE REVIEWS
All employees will undergo a formal performance review with their
immediate managers once in a year. A review is also conducted in
the event of a promotion or change in duties and responsibilities.

During a formal performance review, the manager covers the

following areas:

The quality and quantity of your work

Strengths and areas for improvement

Attitude and willingness to work

Initiative and teamwork

Attendance

Problem solving skills

Functions of HR at MCB
Performance Management

APPRAISAL PROCESS

The employee fills his/her Annual Performance review Form (Part 1).

The reporting officer completes his/her part which is Part 2.

The reporting officer then forward the Annual Performance Review

form to department head.

The department head, then decides that if this report needs to be

reviewed with reporting authority or forward it to admin department.

The admin department prepares cases for each department and

forwards them to Admin Committee.

The Admin Committee makes the recommendation to the Board of

Management.

The Board of Management re-screens the cases and forward to the

Managing Director.

MD can re-evaluate or approve the cases.

Functions of HR at MCB
APPRAISAL FORM SPECIMEN
MCB
ANNUAL PERFORMANCE REVIEW REPORT
YEAR ENDING _______________________
PROFESSIONAL AND ALLIED PROFESSIONAL EMPLOYEES

Name

Title

Division

Note: The purpose of the annual performance review is to summarize the

staff members achievements over the past twelve (12) months and to
assist in the further development of each staff member.

Initial Appointment
Date:
Grade:

Present Grade:
Since:

PART-I: (to be completed by the staff member)

A.Please describe up to five best/most important assignments/tasks/reports during the last twelve (12) months in the space
below; alongwith nature of your participation (solely/partly responsible). Project Managers should give figures of billing
and receipts on their respective projects with job numbers. Grade 8 employees will only list the jobs they have worked upon.
DESCRIPTION OF TASKS PERFORMED
1.

2.

3.

4.

5.

List of other tasks performed during the reporting period:

B.Please indicate what you can do best, your preferences in career development and your perceived training needs.
Any constructive suggestion(s) may also be given.

_______________________________________________________________________________________________

Dat
e:

Signature

d D mm y y y

ANNUAL PERFORMANCE REVIEW REPORT

PROFESSIONAL AND ALLIED PROFESSIONAL EMPLOYEES (GRADE 8b TO 12)

PART-II: Assessment by Reporting Officer

The reporting officer must read the contents of the employees report written by him on page 1.
Sr.

1.

POINTS**

FACTORS ASSESSED *

No.

Maximum

QUALITY OF WORK AND TECHNICAL EXPERTISE

TOTAL =

Percentage*** =

2.

QUANTITY OF WORK

3.

WRITTEN COMMUNICATION SKILLS

4.

VERBAL COMMUNICATION/ PRESENTATION SKILLS (IF APPLICABLE)

5.

PERSONALITY/ ATTIRE/ TURNOUT

6.

SUPERVISION REQUIRED (IF APPLICABLE)

Does he function independently with minimum guidance?

Does he keep his supervisors effectively informed? Is he a good team member?
7.

SUPERVISION EXERCISED (IF APPLICABLE)

Does he delegate responsibility to his subordinates?

Does he efficiently supervise their work? Is he a good team leader?
8.

INTELLIGENCE/ INTELLECT

9.

INITIATIVE

How often does he take correct necessary action without being told?
10.

DECISION MAKING (IF APPLICABLE)

Can he analyze problem(s) and make appropriate timely decisions?

Does he take the responsibility of his actions?
11.

ATTITUDE AND COOPERATION

Is he responsible, mature and fair? Does he accept constructive criticism?

Does he willingly follow instructions? Is he a team worker? Does he volunteer his help?
12.

13.

WORK HABITS/ ETHICS

COST CONSCIOUSNESS (IF APPLICABLE)

14.

Awarded

CLIENT DEALINGS (IF APPLICABLE)

Is he able to develop effective relationships with clients?

Does he safeguard MCBs interests?

MCB
ANNUAL PERFORMANCE REVIEW REPORT
YEAR ENDING _______________________
PROFESSIONAL AND ALLIED PROFESSIONAL EMPLOYEES (GRADE 8b TO 12)

COMMENTS

Additional
Strength(s)

Desired
Improvement(s)1
and
Recommended
Training Area(s)2

Potential
to be Exploited/
Developed 3
(Career Planning)

Name:

Title:

Division:

Grade:

(1, 2 & 3: These recommendations are to be entered in the HRD database.

1&2:
These recommendations are to be communicated in writing to the employee by HRD as an advice to pursue
development.)

Signature of Reporting Officer

D
a
t
e

Name and Designation

his career

INITIAL RECOMMENDATIONS

Accelerated Promotion

Letter of Appreciation

Promotion

Adverse Remarks

Honourarium

Letter of Concern/Warning

Signature of
Reporting Officer

Date:

d d m m y y y

Name and Designation

Signature of Previous
Division Head
(if applicable)

Name and Designation

PART-III: ASSESSMENT BY SECOND REPORTING OFFICER (if required)

COMMENTS

D
a
t
e

Signature of Second Reporting

Officer

Name and Designation

PART-IV: ASSESSMENT BY HEAD OF DIVISION

OVERALL GRADING (G)
OUTSTANDING
G > 90%

VERY GOOD
80% < G 90%
86<G< 90

83<G< 86

5.5

GOOD
60% < G 80%
80<G< 83

73<G< 80

67<G< 73

4.5

4.75

BELOW
AVERAGE
G 40%

AVERAGE
40% < G 60%
60<G< 67

3.75

53<G< 60

47<G< 53

40<G< 47

3.5

2.75

COMMENTS:

FINAL RECOMMENDATIONS :

If YES, Tick the appropriate

box:
Letter of Appreciation

Accelerated Promotion

Promotion

Letter of Concern

Honourarium

Warning

Signature of Division Head

D
at
e

Name and Designation

ANNUAL PERFORMANCE REVIEW RATINGS

Following are the credit points earned for different performance categories and ratio for performance management in each category:
Performance

Credit Points Earned

Categories

Professionals

Pare

Limit
and

for

performance

Non Para-Professionals Grade Standings

Professionals

8a and above

Outstanding

2.5

Add 1.5

Not more than 10%

Very Good

Add 1.0

Not more than 40%

Good

1.5

Average

0.5

Below Average

Poor

-2

-2

APPRAISAL REWARDS
After successful completion of the appraisal process the employees are rewarded in the following forms:

Promotion

Letter of Appreciation (LOA)

Letter of Concern (LOC)

DIVERSITY MANAGEMENT AT MCB

MCB manages diversity in the following ways:

By implementing strong policies of equality in the company.

By making sure that good faith efforts are made to recruit a

diverse applicant pool.

By focusing on the job requirements in the interview and

demonstrated competencies, such as analytical, organizational,
communication, coordination. Prior experience should not
necessarily mean effectiveness or success on the job.

MCB is using a panel interview format which ensures that the

committee is diverse, unit affiliation, job classification, length
of service, variety of life experiences, etc. to represent
different perspectives and to eliminate bias from the selection
process.

By ensuring appropriate vacancies for disabled applicants as

MCB is an Equal Opportunity Employer.

ORGANIZATIONAL STRATEGY & HR STRATEGY

There is no specific document that states any sort of

strategy or goals for the divisions. At Corporate level the
strategy is the mission of the organization. And the HR
strategy for all its functions is also derived from that mission
statement discussed at the beginning. Recruitment &
Selection, Training & Development and Performance
Management are all doing their part bit by bit to achieve
maximum quality in every activity they perform.

But after analyzing the organization, MCB's organizational

strategy could be summarized as below:

Commitment to Quality.

Aggressive Business Development

Sustaining High Services Performance.

QUESTIONNAIRE SURVEY OF HR DIVISION

A Questionnaire was used to analyze what the employees working in MCB's HR Division think about Strategic Human Resource
Management practices in their division. The results are given below:

Q1. Do you have an HR department in charge of all personnel-related matters? To what extent has the HR department been in
charge of all personnel-related matters? (1 being not in charge at all, 5 being heavily in charge)

80
70
60
5
4
3
2
1

50
40
30
20
10
0

Yes

No

To some extent

To what extent

Q2. Does the HR department or any HR manager/officer get involved in strategic planning? To what extent
does the HR department get involved in strategic planning process at the site level? To what extent does the
HR department get involved in strategic planning process at the organizational (headquarter) level? (1 being
not in charge at all, 5 being heavily in charge)

90
80
70
60
50
40
30
20
10
0

5
4
3
2
1

Q3. What kind of business strategy has been adopted by your organization? (1
being least intensive, 5 being most intensive):

100
90
80
70
5
4
3
2
1

60
50
40
30
20
10
0

InnovativeStrategy

Quality improvement strategy Cost reduction strategy

Others

Q4. Indicate the degree of applicability of the following statements to your

organization? (1 being the least applicable and 5 being most applicable)

100

100

90

90
80

80

70

70
60
50
40
30
20
10
0
Encourage and support industry-based R&D projects and activities

5
4
3
2
1

60
50
40
30
20
10
0
Encourage employee participation in decisions

5
4
3
2
1

5. Indicate the appropriate scale for your organization in responding to the following
statements in regard to the Human Resource (HR) strategies and processes?

100
90
80
70
60
50
40
30
20
10
0
5
4
3
2
1

Q6.
Please point out the degree of support the HR department, either on site or from
headquarter, provides to the business units of your organization in the following activities.

100
90
80
70
60
50
40
30
20
10
0
5
4
3
2
1

Q7. The following are a set of questions related to your organization's size, years of
establishment, ownership, products range, production nature, structure and culture.
What best describes your firm?

100
90
80
70
60
50
40
30
20
10
0

45
40
35
30
25
20
15
10
5
0

30
25
20
15
10
5
0
A bottom up communication approach is often used

Conclusion & Recommendations

MCBs capabilities in the services banking sector are well recognized at national and international level. Its
experts provide a full range of services in all phases of banking, but HR division was established a few
years back thats why HR practices and applications are not up to standard or working efficiently.

The organization has not remained with the current technology and trends. MCB really needs to
implement Enterprise Resource Planning (ERP) overall to become efficient and effective without
wasting important resources.

MCB should also focus on Strategic Planning activities in all divisions with a special focus on
setting SMART goals for employees to achieve.

MCB should increase employee's compensation for better retention. MCB's initial salary
packages are quite competitive but as the career of an employee progresses his compensation
loses its competitiveness with the market.

MCB's HR is evolving but it should also handle the function of Performance Management instead
of Coordination Division, because they have failed to incorporate improvements in the current
Appraisal System.