bManagment Report Ryner

8/8/2019 bManagment Report Ryner

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MANAGEMENT REPORT 2010

FACULTY: MR. BABAR WAHAB

PREPARED BY:ALTAF MAGSI (FA09-MB-0012)

&

SEHRISH NADEEM (FA09-MB-0012)

Mohammad Ali Jinnah University

COMPANY:


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Dear Sir,

Here is the semester report you had asked on management practices.I have triedmy level best to meet your requirements as instructed and hope that it will matchthe standards.

I have compiled this report based on my experience over the last six months atNational Bank of Pakistan. My methods include constant observation of dailyroutine work of the entire office, continuous communication with managers,visiting managers and specially the Regional heads and taking down notesduring meetings and trainings. I have also tried to gather some information fromemployees in the different branches of NBP.

I have tried to cover all the relevant topics that were taught during this semester.As a student of MBA I have found this report very helpful as it has substantiated

my professional skills and expertise.

Regards,Altaf MagsiFA09-MB-0012.


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TABLEOFCONTENTS

1 INTRODUCTION..4RANGE OF PRODUCTS...................................................5

MISSION, VISION AND VALUES.......5GOALS.5

AWARDS & ACIEVEMENTS.6

PRODUCT DESCRIPTION.7

2 FUNCTIONS PERFORMED BY NBP.8ACCEPTING DEPOSITS...9

ADVANCING LOANS.10PAYMENTS OF CHEAQUES..11

PAYMENTS OF PENSIONS..11

3 CULTURE & ENVIRONMENT OF NBP.................................................................................11

ORGANIZATIONAL CULTURE..11STRATEGIC TOP MANAGEMENT12

INDUSTRIAL POLICIES.........................................................................................15LENIENT POLICIES WITH CLIENTS.15

YOUNG BLOOD..15

4 HUMAN RESOURCES.......15

HR MISSION............................................................16JOB OPPORTUNITIES.....17

HR EVENTS..17EMPLOYEES COMMUNICATION PROGRAMS ..18

STRUCTURE OF HR DEPARTMENT...18


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5 PLANNING & FORECASTING.21

ORGANIZATIONAL STUDY....22PLANNING PROCESS IN NBP.23

PERFORMANCE MANAGEMENT...23

6ORGANIZATIONAL CAREER MANAGEMENT ..25

PROMOTIONS28DEMOTIONS29

RSIGNATION & RETIREMENT..29

7 THE HIERARCHY.30

HIERARCHY OF NBP STRUCTURE.31

ORGANIZATIONAL HIERARCHY CHART.32MANAGEMENT AND ORGANIZATION33


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INTRODUCTION TO NBP

National Bank of Pakistan is the largest commercial bank operating in Pakistan.Its balance sheet size surpasses that of any of the other banks functioninglocally. It has redefined its role and has moved from a public sector organizationinto a modern commercial bank. The Bank's services are available to individuals,corporate entities and government. While it continues to act as trustee of publicfunds and as the agent to the State Bank of Pakistan (in places where SBP does

not have a presence) it has diversified its business portfolio and is today a majorlead player in the debt equity market, corporate investment banking, retail andconsumer banking, agricultural financing, treasury services and is showinggrowing interest in promoting and developing the country's small and mediumenterprises and at the same time fulfilling its social responsibilities, as acorporate citizen.National Bank of Pakistan has built an extensive branch network with 1250branches in Pakistan and operates in major business centre abroad. The Bankhas representative offices in Beijing, Tashkent, Chicago and Toronto. It has

agency arrangements with more than 3000 correspondent banks worldwide. Itssubsidiaries are Taurus Securities Ltd, NBP Exchange Company Ltd, NBPCapital Ltd, NBP Modaraba Management Company Ltd, and CJSC Bank,

Almighty, Kazakhstan. The Bank's joint ventures are, United National Bank (UK),First Investment Bank and NAFA, an Asset Management Company (a jointventure with NIB Bank & Fullerton Fund Management of Singapore).


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MISSION, VISION AND VALUES

y MISION:

o Institutionalizing a merit and performance culture.o Creating a distinctive brand identity by providing the

highest standards of services.o Adopting the best international management practices.o Maximizing stakeholders value.

oDischarging our responsibility as a good corporatecitizen of Pakistan and in countries where we operate.

y VISION:

o

To be recognized as a leader and a brand synonymous with trust, higheststandards of service quality, international best practices and socialresponsibility.

o We will be respected and admired for the way we work and be seen byeveryone (clients and staff) to have made a tangible and positivecontribution to their success in business.


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y VALUES:

Highest standards of Integrity Institutionalizing team work and performance culture Excellence in service Advancement of skills for tomorrows challenges

Awareness of social and community responsibility Value creation for all stakeholders

y GOALS:

To enhance profitability and maximization ofNBP share through increasingleverage of existing customer base and diversified range of products.


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Awards & Achievements

y Best Foreign Exchange Bank 2008 awarded by world's leading financialjournal Global Finance

y Best Return on Capital for 2006 amongst all Banks in Asia . -BankerMagazine in July 2007

y Best Foreign Exchange Bank Pakistan award for the year 2006 by

world's leading financial journal Global Financey Best Bank - Pakistan award for the year 2005 by world's leading financial

journalGlobal Finance

y Bank of the Yearawarded for the year2005 by the world renownedThe Bankermagazine owned by the Financial Times Group, London.

y Bank of the Yearaward for the year2004 by the world renowned TheBankermagazine owned by the Financial Times Group , London .

NBP Product Descriptionsy NBP Premium aamdani

y NBP Premium saver

y NBP Mera Apna KarobarNBP Saibaan

y NBP Advance salary

y NBP Cash card

y NBP Investor advantage

y NBP Cash & gold

y

NBP Kissan dosty NBP Pak remit

y NBP Protection Shield


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y NBP Premium Aamdani(Monthly Income Scheme)

Earn up to 11% p.a. Minimum deposit of Rs. 20,000/- and a maximum deposit of Rs. 5,000,000/-for 5 years Free Demand Draft, Pay Order and Cheque Book* Convenience of NBP online Aasan Banking (for online banking customers) Free NBP Cash Card (ATM+Debit) Running finance facility up to 90%

y NBP Premium saver(PLS Saving Account)

Earn up to 7.25% p.a. Minimum saving balance of Rs. 20,001/- & a maximum balance of Rs. 300,000/-*

Free NBP Cash Card (ATM + Debit)

Convenience of NBP Online Aasan Banking (for online banking customers)

Two debit withdrawals allowed in a month & no limit on number of

deposit transactions

Profit calculated on monthly and paid on half yearly basis

y NBP Mera Apna Karobar

Minimum down payment, 10% of asset price (5% for PCO & Telecaster)

Tenure 1 to 5 years (for PCO 2 years)

Grace period 3 months

Maximum loan amount Rs. 200,000/-

Age 18-45 years Mark-up (variable) 1 year KIBOR + 2.00% p.a.

The customer will pay markup @ 6% p.a., rest will be borne by GO

Life & disability insurance paid by GOP*


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y NBP Saibaan (Home Financing)

Home Purchase

Home Construction

Home Renovation Purchase of Land + Construction

Balance Transfer Facility (BTF)

y NBP Advance Salary(Personal Loan)

Easy installments of 1 to 60 months at your choice

No minimum income collateral & insurance charges required

Quick processing and fastest disbursement

The product is for permanent employees of Government, Semi

Government and Autonomous bodies receiving salaries through NBP

accounts.

y NBP Cash Card(ATM + Debit Card)

Use it as an ATM in any of the ATMs in Pakistan Use it as Debit Card in any of the outlets with ORIX POS machine Cash withdrawal up to Rs. 20,000/- per day Account Balance Enquiry Mini Statement (Only at NBP ATM) PIN Change facility (Only at NBP)


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y NBP Investor advantage (Financing Facility for StockInvestors)

Comfortable environment for trading No security requirement, except for the customers equity Customers equity freely available for investment Equity acceptable in cash or approved shares

y NBP Cash & gold (Ready Cash Against Gold)y Facility of Rs. 14, 000/-against each 10 gms of net weight of Gold

Ornamentsy No maximum limit of cashy Repayment after one yeary Roll over facilityy No penalty for each repayment

y NBP Kissan dost(Agriculture Farming Program)

Competitive mark-up rate Quick & easy processing Delivery at the farmers doorstep Technical guidance to farmers Wide range of financing schemes for farmers Finance facility up to Rs. 500,000/- for landless farmers againstpersonal guarantee Financing available against pass book, residential/commercial

property, gold ornaments and paper security Loan facility on revolving basis for three years (renewable on yearly basiswithout documentation and approval)


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y NBP Pak remity Pakremitis aninternet based Home Remittance Service.This service

is available to U.S. residents for sending money to their family andfriends in Pakistan. One must have a valid USDollar account with aU.S. bank or a US Dollar credit or debit card in order to remit fundsthrough this channel.

y Remitters in USA can log on to our user friendly website,www.pakremit.com and easily remit funds to Pakistan from the comfortof their homes, in a matter of minutes.

y The service is fully secure with advance encryption application and isavailable for use 24 hours a day, 7 days a week. Fees and exchangerate have been set at competitive levels and the remitters have theability to track delivery of funds as well.

y NBP Protection Shield (Personal Accident Insurance)

y

No documentation No medical required Premium Auto Debit facility & choice of deactivation Coverage includes death due to: Natural Calamities e.g. Earthquake, Flood, Cyclone etc. Accident Riots* Civil Commotion* Strikes*

Acts of Terrorism*


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FUNCTIONS PERFORMED BY NATIONAL BANK OFPAKISTAN

To fulfill the basic objectives of socio-economic nature the bank perform followingimportant functions:

y Accepting Deposits:This function is performed by the bank by opening of the different type ofaccounts, which are as follows:Saving Account, Current Account, Fixed Deposits & N.I.D.A. account.

y Advancing of Loans:Different types of loans are granted to different type of people and industriesthese include:

o Running Financeo Over Draft

o Demand Finance Gold

yPayment of Cheques:Cheques drawn against various deposits are honored and paid in cash.

y Payment of Pensions:This function is performed by N.B.P. as a govt. treasurer all the pensions offederal govt. provincial Govt. and semi Govt. employees is paid by NBP.

y SalaryManagement of Different Governmental Institutions:The salary of govt. and semi govt. employees is first credited to the account ofNBP and is then credited to there personal accounts.


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y Issuing Travelers Cheques:The travelers cheques are issued by NBP for secure transfer of money from oneplace to another, without charging any commission.

yCollection and Sale of Prize Bonds:The national prize bonds are purchased and sold at the branches of the NBP

according to the rules formulated by the SBP.

y Collection of Fees and Money from People Proceeding onHajj Pilgrimage:

National Bank collects the fee from the people proceeding for hajj and act asthere agent.

y Transfer of Funds from One Place to Another:Money is transferred from one place to another by different means likeBank Draft, Mail Transfer Telegraphic or Telephonic Transfer Travelers Cheques

y Collection of Chalans:Various Govt. revenues are collected by NBP in the form of chalans .

y Issue Guarantee And Indemnity Collection Of NegotiableInstruments

y Act As Income Tax Advisor

y Act As An Agent Or Representative Of His Customer


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NBPs CULTURE & ENVIRONMENT

Organization Culture:NBP's organization culture was very friendly and interesting. Employees hascreated a very cooperative environment among each other. They have createdloyalty toward the organization by deviating their future efforts and energies. The

employees take the organizational problem personals and try their best for theprosperity of the organization.

Strategic Top Management:Fortunately NBP has got from time to time best top management. Currently theNBP Chairman and as well as President S. Ali Raza Sahid he is the person whohas saved the life of the organization and contributed a lot.

Industrial Policies:NBP helps the government on the implementation of its industrial policies withrespect to economic growth of the country.

Best Research Appraisal Team:Before the project financing NBP has the research appraisal team that justifiesthe economic and financial feasibility of not project in the future. That is thestrength is the scare that it helps the organization from any loss that is to over inthe future in case of failure of the project.

Lenient Policy with the Clients:This is one of the best policies of NBP that it does not kept rude behavior withthis client if they make late in their repayment of loan. But it has adopts lenientway in dealing with them, it helps its customers in the repayment makingrescheduling and restructuring of their loans.


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Young Blood:NBP has young generation aged 27 to 30 graduates that would be helpful tomaintain the quality of their service by hiring new graduates but also would behelpful changing the overall culture of the organization.

HUMAN RESO

URCES

y Introduction:NBP is the employer of choice. The whole NBP family comprises of committedand dedicated members with passion to serve in their respective functionalareas. The Bank has challenging work environment where merit andperformance help the individuals to explore their true potential. As a caringemployer the Bank enables the employees to excel and grow in highly congenialemployment conditions and culture. The career path is full of challenges andopportunities. The Bank has absolutely open culture where members share and

communicate freely.

y HR Mission:Provide more talented Human Resource in all NBP functional areas in relation tocompetition keep motivated all the employees and maintain total industrialharmony.

y Job Opportunities Management Trainees

y ProfessionalsTraining Developments


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JNMDC: For Executive Development Programmes only

o Staff College Karachi : Karachi South, Karachi West, Hyderabad, Sukkur, Larkana, Gwadar, Quetta and Regional Audit OfficeKarachi

o Staff College Lahore : Lahore Central, Lahore East, Multan ,Sahiwal, D.G Khan, Gujranwala , Sialkot , Bahawalpur andRegional Audit Office Lahore .

o Staff College Peshawar : Peshawar , Abbottabad, Mardan, D .IKhan.

o Staff College Peshawar : Islamabad , Rawalpindi , Jhang,

Faisalabad , Gujrat, Jhelum , Sargodha , Mirpur, Muzaffarabad,Gilgit and Regional Audit Office Islamabad .

y Employee Communication Programme:

Employee Communication is considered a vital tool for employee motivation andpromoting their commitment and loyalty with the organization. It also helps theorganization to get the employee feedback on important matters.

Employee Communication Program has been developed to keep our employeesinformed about the Bank's products and services, prudential regulations, systemand controls, compliance of standard procedure and regulatory requirements,customer service requisites as well as technological developments particularlyautomation in banking functions.

y Sports and Culture:

o NBP Sports Complex

o NBP Cricket Academy

y HR Events:

o Conferenceo Female Empowerment

Work shop


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Dialogue Sessions

Quiz Programs

STRUCTURE OF HRM DEPARTMENT

y Departmental Hierarchy

y HRM process in the organization

National Bank of Pakistan has an existing HRM Department, which operates to:

o To Increase the skills of former employso To Substantiate the proficiency of new recruitso To Compensate and supervise the employs

Vice President

Human Resources

Manager Total

Compensation

Manager People

and Organizational

Development

Manager Labor

Relations


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PLANNING & FORECASTING

y Organizational Study

o To determine the organizational missiono To Scan the organizational Environmento To Set strategic goalso To formulate a strategic Plan

y Steps of Planning process in NBP

o To determine the objectiveso Defining skills required to meet objectiveso To Determine additional HR requirementso To develop actions in order to meet the Anticipated HR needs

y Forcasting

Zero Base Forecasting:This methods uses the NBPs current level of employment as a starting point fordetermining future staff needs for NBP.

Bottom-Up Approach:

It is a forecast method in which each successive level of NBP, starting with thelowest and forecast its employees requirements in order to ultimately provide anaggregate forecast of employment needs.


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

NBP training and development academy advises job rotation toensure & facilitate the production of all rounders.

The training plan is started atleast two months before thecommencement of New Year, In order to make it easy for socializingand orientation of new employees.

NBP believes in Pre-Post training test for existing employees andpost training test for new employees.

PERFORMANCE MANAGEMENTy Performance management:

In the personal trait evaluation there are ten things:o Discipline & Punctualityo Initiative & Driveo Team Spirito Intelligenceo Honestyo Interpersonal relationship Skillso Creativity & Innovationso Flexibilityo Loyalty & devotiono Fitness

y Performance Factors:Also there are ten factors:

o Professional knowledgeo Improving Corporate cultureo Decision making abilityo Ability to visualize and plano Ability to act in emergent situationso Ability to implement Decisionso Ability to guide and create team work


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o Communication Skills

o Customer relationshipso Acquaintance with technological improvements

y Performance Evaluation:o An employee has not any right access to his/her annual confidential reports

but, he/she will be informed; so that he/she may correct/improve/rectify

himself/herself for his/her weaknesses if he/she has any.o After finishing the annual confidential reports (ACR) in paper, HR

department enter these reports into the database.o On the basis of evaluations benefits are offered in terms of promotions,

rewards etc

COMPENSATIONS & BENEFITS

Different types of benefits include:

o Base payo Commissionso Overtime payo Bonuses & Profit sharingo Stock optionso Travel/Meal/Housing Allowanceso Leaveso Medical benefitso Insuranceo Retirement benefits


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ORGANIZATIONAL CAREER MANAGEMENT

y Promotions:The criteria for Promotions to a specified post are usually merit-cum-seniority. Aperson will be eligible for promotion if:

o Satisfactory records of serviceso Meets the criteria for Promotiono Clear recommendation for promotion in his/her ACR.

If there is any departmental proceedings underway against him/her or anypenalty other than censure or warning has been imposed on him/her with in thelast three years then the employ will not be promoted.

y Demotions/Expulsions:The organizational rules are set and handed over to employees during the joining

process:o The person is demoted to lower rank if the performance required

remains same for the 3 yearso Sometimes persons are not demoted but higher post may be created

in the organization to change the status quo of demoted employee.o The person may be expelled on the course of bad conduct in law,

convicted by law, fraudulent activities.

y Resignation:o

When an employee wants resignation, he has to apply in HRdepartment. He should notice HR department three months beforethe resignation. If he fails to inform three months before then he hasto pay the gross salary of three months.

o After an employ apply for resignation, the HR department will queryall the branches that either the employ has any transaction with any


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branch or not. On approval from all the branches the head of HRD

approve his/her resignation which is then sent to the employeesBranch manager.

y Retirement:o HR department will write to employee CC line manager advising

retirement date.o

Line manager arrange informal meeting with the employ to discussplans and confirm right to request continued working.o Line manager writes to employee confirming meeting CC HR.o Employee chooses to retire at 65.

o Normal retirement Procedures apply.

SWOT analysis of NBP

y Strengths:o Financial strengthso High percentage of Gross profitso Large number of brancheso Govt. support imageo Huge assetso Large number of Govt. deposits

y Weaknesses:o Traditional approach

o Lack of IT infrastructureo Burden of running Extra brancheso Lack of modern banking productso Low number of online brancheso Inside recruitment (not on merit)o Weak customer Handling


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y Organizational Hierarchy Chart:

CEO

Departments

Agriculture

Audit &Inspection

I.T

Finance

Accounts

ForeignTrade

CorporateBanking

Dept

Administration

Internal Div.& FTPC

Investment& Treasury

Operations

HumanResourceDept

CreditAdministration

Dept

CreditSanctionDept


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MANAGEMENT AND ORGANIZATION OF BANK

Board of Directors:In the management of the bank the board of directors is at the top of thecontrolling bodies. Since there are no private shareholders, so there is nogeneral meeting of shareholders and no directors are elected. The board

consists of a nominated president, a secretary and 6 other members.After nationalization in 1974 most of the powers have been transferred to theexecutive board.

Executive Board:It is also called the management committee. The general direction andsupervision of the affairs of the bank lies in their respective executive boards.The president, secretary and 6 other members of the board are appointed by thefederal govt.The president being the chief executive controls the affairs of thebank.

Chief Executive:The president is the administrative head of the bank. He manages and controlsthe affairs of the bank. The president holds the office at the pleasure of thefederal government.

Regional chiefs:In order to improve the performance of the banking system, the bank hasappointed regional chiefs also. The regional chief has the powers of sanctioning

finance and other credit facilities.There are 7 regional head quarters of the regional chiefs of the N.B.P one is inthe N.W.F.P one is in Baluchistan, three are in Punjab, and two are situated inSindh.


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Zonal Chiefs:Each region is divided into number of zones. They hold the post of VP or AVPand administer these zones.N.B.P has 37 zonal offices in Pakistan.

Branch managers:Each zone is then sub divided into a no. of branches. The control andsupervision of each branch is mostly entrusted to AVP or officer of grade II.


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