HR Practices in National Bank of Pakistan

Group members Sahar Naeem Saima Bilal Shabnam Mushtaq Robina Taj Tahira Tabassum 04 -arid-142 06 -arid-123 06 -arid-202 06 -arid-119 06 -arid-151

Contents Introduction Human to National Bank of Pakistan Resource department at NBP Organizational Human chart of HR department Resource Planning and Forecasting Employee Training Recruitment & Selection and Development Performance Employee management compensation and benefits

Introduction to National Bank of Pakistan NBP was established in 1949 under the National Bank of Pakistan Ordinance and was owned by government at that time Acted as an agent of the central bank wherever the State Bank did not have its own branch NBP got privatized in 2002 and now it is owned mutually by Abu Dhabi based foreign consortium and Government of Pakistan It is the only bank in Pakistan's financial sector that caters for all type of financial needs of the customers as well as the State It is the only Pakistani bank with multinational status NBP has 1200 local branches, 18 overseas branches along with international banking ventures in Kazakhstan and UK NBP has 15000 employees worldwide

Human Resource department at NBP At start there was no concept of manpower planning in NBP But after the privatization of NBP massive programme was launched by new leadership to introduce a Culture Change in the organization 1. 2. 3. Main purposes of this culture change process were: Transformation of NBP from service organization to service/profit earning entity Introduction of technology based infrastructure eliminating old manual ledgers Induction of highly educated and professional employees in the bank through all Pakistan open merit written examination conducted by Pakistan Banking and Finance Services Commission For this purpose a separate Group has been created in the bank to handle HR matters It is called Human Resource Management and Administration Group and it is presently being headed by Dr. Mirza Ibrar Baig.

HR Mission Provide more talented Human Resource in all NBP functional areas in relation to competition Keep all the employees motivated and maintain total industrial harmony NBP Values NBP believe that: People make the organization People collectively yield results People have ambitions and aspirations to be distinguished and rewarded People form the human capital to be developed and invested in

Organizational Chart of HR department

Human Resource Planning and Forecasting HRP is the process of analyzing organization's human resource needs in the light of organization's objectives, corporate and business level strategies. It includes: a. b. c. d. e. f. Developing plans, policies, and systems to satisfy HR needs Setting human resource objectives and deciding how to meet them Ensuring HR resource supply meets human resource demands Comparing forecasts of demand supply Planning the actions needed to deal with anticipated shortage or overages Feeding back HR information into the strategic planning process NBP is employing about 100 young MBA's every year to meet its present as well as future needs

Human Resource Planning and Forecasting (cont. . ) HRP process at NBP Interfacing with strategic planning and scanning the environment Taking an inventory of the company's current human resources Forecasting demand for human resources Forecasting the supply of HR from within the organization and in the external labor market

Human Resource Planning and Forecasting (cont. . ) Methods of forecasting HR needs 1. Internal Supply Forecasting Information Organizational features (e. g. , staffing capabilities) Productivity - rates of productivity, productivity changes Rates of promotion, demotion, transfer and turnover 2. External Supply Forecasting Information External labor market factors (retirements, mobility, education, unemployment). Controllable company factors on external factors (entry-level openings, recruiting, compensation).

Human Resource Planning and Forecasting (cont. . ) Factors Affecting HR Forecast and Planning Sales and production forecasts Effects of technological change on task needs Variations in the efficiency, productivity, flexibility of labor as a result of training etc Changes in employment practices (e. g. use of subcontractors or agency staffs etc) Variations, which respond to new legislation, e. g. payroll taxes or their abolition, new health and safety requirements Changes in Government policies Factors affecting NBP’s portfolio for e. g. Competitors etc.

Forecasting as a Part of Human Resource Planning

Employee Recruitment & Selection Recruitment of staff is preceded by: 1. 2. 3. Job analysis In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process) Use external expert consultants for recruitment and selection Equally organization may seek help from 'head hunters', to recruit executives 5. Recruitment and Selection should screen for suitability of applicants as poor selection costs a lot even for the mundane dayto day jobs 6. NBP strictly follows merit policy for recruitment and selection of employees in the bank 4.

NBP recruitment process

Sources of Candidates Internal Sources 1. HR Group Head Office Karachi All the Groups in NBP Regional HR Wings Special products divisions External Sources 2. 1. 2. 3. Industry Educational institutions Institute of Bankers in Pakistan

Employment selection process As per requirement of the bank, the HR group circulates details of all the vacancies in all the branches through Regional HR Departments Applications are screened of internal applicants and suitable candidates are called for interview after scrutiny

Employment selection process (cont…) Advertisement in Media Applications, CV’s from Prospective Candidates Shortlisting at HR group, Head office Karachi Call Letter for Written tests by IBP Shortlisting and Call Letter for Interviews Selection of Candidates from Interviews Job Offer Letters , Orientation and Training of Successful Candidates

Job Opportunities in NBP 1. Management Trainees 2. Professionals 3. MBA lady officers 4. Customers Facilitation Officers 5. Cash staff

Training and Development Training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately Development is 'the growth of an individual in terms of ability, understanding and awareness'

Need of Training and Development 1. Develop workers to undertake higher-grade tasks 2. Provide the conventional training of new and young workers (e. g. as apprentices, clerks, etc. ) 3. Raise efficiency and standards of performance 4. Meet legislative requirements (e. g. health and safety) 5. Inform people (induction training, pre-retirement courses, etc. ) 6. From time to time meet special needs arising from technical, legislative, and knowledge need changes. Meeting these needs is achieved via the 'training loop'

Training Process Training need assessment (TNA) Keys factors affecting training needs assessment are: Defining Gap: Between Current and Desired Performance 2. Structure of training needs: Whether Organizational Performance, Individual behavior and performance or Overall competence needs to be improved 3. Needs Level in an Organization: a. Individual needs like knowledge, skills, attitude, performance etc b. Group needs like teams, groups, needs of group as a whole c. Organizational needs like environment, competitors, peers, etc 4. Quantitative/qualitative a. Problem identification & analysis b. Comparison/ bench marking c. Expert opinion

Employee development It is based on TNA of an employee Special training programs are arranged by Organizational Development and Training Wing headed by Executive Vice President Mr. Muhammad Hanif at NBP OD&T Wing formulates education and training programs for all levels of employees from executives to lower management NBP has various Staff colleges across Pakistan for this purpose

Types of Trainings at NBP 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Know your customer & Anti Money Laundering (KYC, AML) Basic Foreign Exchange International Banking Credit Risks and how to counter Risks Frauds/ Forgeries detection and prevention New Account Opening Employees Communication Programme MS Office courses Management Courses Annual Appraisal Formats

Employment Training and Development Methods 1. 2. 3. 4. 5. 6. 7. 8. Work shop Dialogue Sessions Quiz Programs Lectures by NBP resource persons or professionals from other institutes On job Training Tours of Trainees to different offices Seminars On spot training by visits of resource persons to the respective regions

Performance management Necessary because it improves organizational performance via improving individual performance It identify individual potential, what can be done to get better results from individual skills Helps in Appraisals and Promotions

Category Examples of Performance standards in different departments Standards Business Targets for Deposits, Advances, Profits, Business Volume, Import/Exports, New Products Operational matters like Internal workings, Complaints and complaints handling Staff positioning , Customer care, Follow up of procedure, Prudential Regulations , KYC, AML Compliance Audit, Audit category, Audit irregularities and their rectification, Compliance of audit manual, Compliance of procedures, SBP/ External audit Credit procedures, Credit formalities, Legal issues, Export handling documents, FIM creation, SBP Prudential Regulations HR HR Issues, Training and Development, Training needs assessment, Transfers & postings, Disciplinary cases, Frauds/ forgeries handling, Industrial relations

Performance reports NBP has was using old ACR system for employees evaluation until 2004 when Performance based Appraisal system was launched by HRM in NBP According to this system employees are assigned SMART job goals at the start of the year then mid year and final evaluation is made at the end of the year on the basis of these set targets Further employee evaluation is done by his immediate boss regarding his motivation and behavior, then employee report is prepared with his consent to eliminate biasness These reports provide basis for employee appraisals, promotions and training need assessment

Employee compensation and benefits Gives motivation to employees, help retain good staff, and encourage employees to give their best Employee compensation and benefit rules are decided by government along with market mechanism Good Employment Benefits in NBP ensure minimum turnover rate

Employee compensation and benefits (cont…) Competitive Wage Policy At present, salary structure of NBP employees is much better than its competitors. Besides basic pay, following allowances are also paid to employees irrespective of their grade or scale House Rent Allowance (50% of basic pay) Conveyance Allowance (minimum 90 liters of petrol to clerical staff, 120 liter OG-III, 130 Liters OG-II, 140 to OG-II, 240 TO AVP and so on. ) Utility Bill Allowances Education Allowances Medical Allowances (for medicines) Maternity Allowances

Employee compensation and benefits (cont…) Spot Cash Awards: They are awarded for extraordinary counter service or adopting precautionary measures to prevent frauds/ forgeries Special Cash Awards: Every year, best performers are awarded with cash awards ranging from Rs. 100, 000/-to Rs. 500, 000/- depending on the grade of the employee Mostly managers are benefited from this award to motivate them for procuring more business

Employee compensation and benefits (cont…) Annual Increase: Employees (AVP and above) get annual increase in their basic pays depending on their performance, cost of living with increase rate varying from 4% to 17% All other employees get their annual increase as per rate announced by the Head Office irrespective of their performance However from the year 2009, concept of "Pay for Performance" is implemented in NBP for all the officers and executives Loan Facilities Motor Cars for Branch Managers Promotions

Employee Job Changes Factors affecting the employee job changes are: Specialized Assignments Specialized Work Force Introduction of Special Products Job changes within organization Transfers: maximum period for an employee to stay at one place is three years in NBP Separations Terminations Resignations Retirement

Organizational career management It is based on the policies of the organization keeping in view following factors: 1. 2. 3. 4. 5. 6. 7. 8. Resources New developments New products New policies Motivation Promotions New employments NBP always stresses the need for career management due to its ongoing development and progress to meet the requirement of competitive environment prevailing in the banking sector

Conclusion NBP is the employer of choice The whole NBP family comprises of committed and dedicated members with passion to serve in their respective functional areas The Bank has challenging work environment where merit and performance help the individuals to explore their true potential NBP is a caring employer which enables the employees to excel and grow in highly congenial employment conditions and culture