National Bank of Pakistan

PRINCIPLE OF MANAGEMENT SEMESTER FALL 10 FINAL REPORT RESEARCH LOCATION NATIONAL BANK OF PAKISTAN HEADOFFICE issue MANAGEMENT PREPARED BY Nash Jinia 4456 Sarosh Ejaz 5050 Irfan Ali 5129 Jehanzaib 4591 SUBMITTED TO MAM AMBER RAZA COURSE ID 10108 DATED 14th NOVEMBER,2010 TABLE OF CONTENTS S. NO PARTICULARS PAGE NO. 1 Ack nowledgments 2 2 An Introduction NBP 3 3 Vision and Mission 4 4 perplexity and St wandergic Values 5 5 NBP Organizational Structure & leading 7 6 SWOT Analysis 10 7 Questions and Answers 12 8 Our Findings 17 9 Why perish at NBP? 24 0 Conclusion 25 ACKNOWLEDGEMENTS We start with the name of tot tout ensembleyah, the most beneficent, the most merciful. We thank Him for giving us the military force and resources to complete this task as He gives all. We would wish well to thank Mr. Jamil Akhtar (AVP Logistics Wing) who kindly referred us to unlike surgical incisions. We would as well as give c atomic number 18 to thank all the provide members of the Na tional savings edge of Pakistan (Head office), who gave us some of their important eon to answer all the questions we had regarding their job and working of the HR department and overly for providing us with such accurate knowledge of their system especially Mr.Mohib-ur-Rehman (Manager Employee Communication). We would also desire to thank our t severallyer and guide, Mam Amber Raza for giving us the research topics as our final term report, which gave us the opportunity to move forward and explore the truly world scenarios and the working of the system in the public sector which benefitted us all the much us being BBA students, and, with whose guidance we were able to put unneurotic all the information necessary in forming this report.AN INTRODUCTION NBP National lingo of Pakistan is the largest technical swear twist operating in Pakistan. Its balance sheet size surpasses that of each of the other banks bringing locally. It has de grooveated its role and has move d from a public sector transcription into a advance(a) commercial bank. The bank buildings services atomic number 18 available to individuals, incarnate entities and government.While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan (in frames where SBP does not stick a presence) it has diversified its business portfolio and is directly a major lead player in the debt equity market, corporate investment banking, retail and consumer banking, agricultural financial contribute, treasury services and is showing increment bear on in promoting and developing the coun sifts scurvy and medium enterprises and at the said(prenominal) clipping fulfiling its social responsibilities, as corporate citizen. In todays competitory business environment, NBP needed to redefine its role and shed the public sector bank image, for a modern commercial bank. It is now listed in the Karachi Stock Exchange. National Bank of Pakistan is today a pro gressive, efficient, and client focused institution. It has developed a wide purge of consumer products, to elevate business and cater to the different segments of society. Some schemes hurl been specifically designed for the first to middle income segments of the population.These include NBP Karobar, NBP Advance Salary, NBP Saiban, NBP Kisan Dost, NBP Cash n Gold. A number of foremosts come across in been sweep upn, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in inbred control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT basis and developing the charitable resources.National Bank of Pakistan has built an extensive branch network with 1250 branches in Pakistan and operates in major business centre ab highway. National Bank has bring in recognition and numerous awards internationalisticly. It has been the recip ient of The Bank of the Year 2001, 2002, 2004 and 2005 p unhingedage by The Banker Magazine, the Best Foreign Exchange Bank Pakistan for 2004, 2005, 2006 and 2007, Global Finance, Best Emerging securities industry Bank from Pakistan for the year 2005, Global Finance, Kissan Time Awards 2005 for NBPs services in the agri socialisation field.It is listed amongst the Regions largest banks and also amongst the largest banks in South Asia 2005, The Asian Banker. It has also been presented a Recognition Award 2004 for having a Gender Sensitive Management by WEBCOP AASHA besides other awards. Year 2007 has yet been another outstanding year with the bank recording the postgraduateest pull in in its history. NBPs wide range of product offerings, large branch network and committed workforce be some of our fundamental military postures that enabled NBP to achieve extraordinary results in a very competitive market. VISION AND MISSIONTo be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility. NBP will aspire to the values that make NBP truly the Nations Bank by Institutionalizing a merit and performance culture Creating a distinctive brand identity by providing the highest standards of services Adopting the best international worry practices Maximizing stakeholders value Discharging our responsibility as a proficient corporate citizen of Pakistan and in countries where we operate. MANAGEMENT AND STRATEGIC VALUES As told by Dr. Mirza Abrar Baig, Senior Executive Vice President convention question, HR Administration) The guidance team as a whole, and each member of it, has clearly defined responsibilities and the necessary authority to manage the insurer in a dash consistent with the strategic direction approved by the supervisory board. All members of the management team are required to perform their duties with due care and diligence, and for the purpo se of maintaining the insurers capacity to meet its obligations to all counterparties and constituencies at all times.Members are free of material conflicts of interest that could unduly influence their judgment. Where management is constituted as a management board, no non-executives should be part of the management board. The NBP team found that the management teams of the insurance companies are professional, with clearly defined responsibilities and adequate authorities to ful adjoin their duties. Boards of directors (i. e. the management boards) consisted only of executives. Management have adequate skills and experience in relation to insurance, finance and other disciplines relevant to the management of an insurer.All members of the management team have access to sufficient resources and gull sufficient information to assist them in the performance of their roles. The management of the major NBP bank appears to be passing professional and demonstrates sufficient skills to fulfill their duties. The NBP team did not re expectation the management of the small locally-owned banks that are not members of the banking association. NBP is continuously transforming its image and customer perception as a modern bank with branch renovation and relocation to more convenient and accessible sites.The team at Operations mathematical group commits itself to change the face of the Bank by way of improving its physical outlook, effective execution of instrument of its systems controls and the quality of service provided to its customers. Improving military operational efficiency is getting more focus wedded the challenges being faced by the industry. With exculpateding of customer facilitation centers for the collection of utility bills and making payments to pensi iodinrs, the bank expects to reduce its counter traffic at branches thereby counselling more on its customers business needs.Customer care is a key area of the bank and various(a) upbringing weap ons platforms have been conducted for employees to improve customer handling and interaction. Special Assets Management Group is primarily responsible for monitoring and settlement of non perform loans (NPLs) portfolio. With NPL coverage of more than 76% we believe that non performing loans hindquarters contri plainlye substantially in the banks profitability finished recoveries and settlements. Rising non-performing loans has been an industry wide phenomenon and due to adverse economic factors, NPLs increased by 26% or Rs. 4. 5 billion. We believe that most of the NPLs are the result of business cycle / circumstantial defaults and with the economy picking up and reduction in interest rates the quantum of non-performing loans is expected to decline. We are keeping our staunch focus on recovery and reduction in non performing loans is the area of greatest attention. The bank truly values its staff and the vital role they play in victorful organizations. The bank gives special att ention to attracting, developing and retaining good quality sympathetic resource.Our new-made hiring of top class MBAs as Management Trainees Officers (MTOs) and search for talent within the Bank have helped in preparing second and third tier leading lines. Female Empowerment was launched to empower female employees and impact communities by championing the cause of womens empowerment in the society. Today, NBP is determined in pursuing the policy of placing females on responsible and challenging position as Branch Managers, Branch Operations Managers and Customer Facilitation Officers. A number of female MTOs have been selected, trained and posted as branch managers.Currently, 60 branches are being passported by females. HR initiatives and strategy is amid at competitive employee compensation, training need assessment and succession planning. NBP is striving to baffle an employer of choice through improved HR policies and competitive remuneration. NBP ORGANIZATIONAL STRUCTURE Organization Structure of the National Bank of Pakistan Main Offices Main Offices of the National Bank of Pakistan are of three types * Head Office * Regional Offices * Branch Office Head Office Head office of the National Bank of Pakistan is located in Karachi.Head office controls and monitors all the activities of the bank. The President of the National Bank of Pakistan seats the go office. A secretariat is established to assist the president in the head office. The head office is divided into twelve Departments. A Group Chief controls a Group. President All Groups/Departments are headed by Group/Department Chiefs. President is the head of all Group Chiefs. All strategic matters are discussed and approved by the president and Group Chiefs. In Head Office following are the Group/Department Chiefs * Operations Group Chief * Corporate Invest.Group Chief * Special Assets Remedial Mgt. Group Chief * strategical Planning Economic Research Group Chief * exchequer Mgt Group Chief * Risk Mgt. Group Chief * Commercial Retail Banking Group Chief * Audit Inspection Group Chief * I. T. Planning Dept. Implementation Group Chief * HRM Dept. Chief * Org. maturement Training Dept Chief * Over-seas Operations Chief NBP HUMAN RESOURCE MANAGEMENT To provide more talented human resource in relation to competition in all NBP functional areas, creating a motivating environment and maintain industrial concordance.As evidenced from the Mission Statement, key element of streng soing the HR menial of the bank includes the following * Provision of talented human resource * Employee motivating * industrial harmony Additionally, all the HR initiative implemented at NBP is in line with the above objectives. VALUES They believe that * stack 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.LEADING POLICIES OF NBP Basically lending policies are governed by SBP lending policies however, NBP has some discounter powers in respect of lending policies. The advances made by the NBP have increased so much and are tangled in creating a great amount of return for the bank. Deposits and the Advances are the two important functions of each bank. NBP takes situates from the customers and lend them to the others for earning a profit. The difference surrounded by the deposit rate and the lending rate will be the benefit of the bank.Civil line branch of NBP is playing the most important role in this category because it has a sort out department to deal with the heaps those who want to have money. Civil line branch is dealing with the corporate sector as well. Working Capital and Short endpoint Loans NBP specializes in providing Project Finance Export Refinance to exporters Pre-shipment and Post-shipment financing to exporters Running finance Cash Finance Small Finance Discounting Bills Purchased Export Bills P urchased / Pre-shipment / Post committal Agricultural Production Loans Medium term loans and Capital Expenditure FinancingNBP provides financing for its clients capital expenditure and other long-term investment needs. By sacramental manduction the risk associated with such long-term investments, NBP expedites clients attempt to upgrade and expand their operation thereby making executable the fulfillment of our clients vision. This type of long term financing proves the banks belief in its clients capabilities, and its commitment to the country. Loan Structuring and Syndication National Banks leadership in loan syndicating stems from ability to forge fast(a) relationships not only with borrowers but also with bank investors.Because we understand our syndicate partners asset criteria, we help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Our syndication capabilities are complemented by our own capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction. Cash Management ServicesWith National Banks Cash Management Services (in abut of being set up), the customers sales collection will be channeled through vast network of NBP branched scattering across the country. This will enable the customer to manage their companys total financial position right from your desktop computer. They will also be able to take advantage of our outstanding range of payment, ejection, liquidity and investment services. In fact, with NBP, youll be provided everything, which takes to manage your cash flow more accurately. Generally in the lead Policies Include * Clean Credit Report. * Compliance with maximum exposure by the bank. Compliance with maximum exposure that can be allowed to a single party. * Funded = 4 times of equity of the firm. * Non-Funded = 10 times of equity of the firm. SWOT ANALYSIS A SWOT analysis is an effective tool, which can be used to hear the issue that will directly affect the success of alternative delivery mechanism. The emerging banking environment is becoming more competitive with the advancement of new technology. The banks are striving to provide their customers with prominent and efficient services at set slightly cost in invest to get the competitive advantage upon other banks.During the internship program a SWOT analysis was also conducted which is as follow Strengths * Deposit security that is guaranteed by Government of Pakistan. * Largest piece toward Government & semi-Government requirements. * Agent to the SBP for handling Treasury/ Currency Chest Functions. * Collaboration with Federal/ Provincial Government organizations for receipts of taxes & other revenues. * Largest network of domestic & overseas branches. * More secured jobs of employees as compared to other commercial banks (Job Security). Sale & Purcha se of prize bonds, NIT units, National Defense Saving Certificates (NDSCs) and other government securities. * Heavy project financing, Agriculture, industrial as well as small loans. * Key role in countrys economic development. * Easy and sententiousened documented procedure. * Guidance and help of experienced people. Weaknesses * Under utilization of the new technology equipment & procedures of banking. * More formal organizational setup. * Bureaucratic style prevails in the National Bank of Pakistan. Lack of highly skilled, trained and professional personnel. * Fixed deposit rates not compatible with the competitors. * Foreign currency accounts governing rules more restricted & not customer oriented. * Bank staff not highly cooperative among themselves as well as with the customers. * Overall employees poor attitude towards work. Opportunities * The ability to obtain a larger customer base. * Global expansion. This is an enormous market, which will be a great opportunity in the future. * The ability to take advantage of the growing popularity of internet banking. Providing Information Technology loans to the students and commandal institutions in order to entreat the Computer and Management studies. * Providing the personalized services to the customers. * Offering high deposit rates and cutting down the high lending rates. * Financing the educational institutions and worldwide public welfare projects in order to create a good image in general public. Threats * Continual changing technology. * Uncertainty of the banking industry. * Competition from lower price operations. * Possible failure of product due to non-acceptance of customer. General competitiveness of the banking industry. QUESTIONS & ANSWERS In addition to all the theoretical evidences we found which includes many conversations with people touch at NBP as listed in our findings, we luckily got the opportunity to meet the two senior executives in the HR department who gave accurate answers to our several questions. The HR function that we were most interested to find about was RECRUITMENT AND SELECTION but we also met with the personnel division head and found out about how HR at NBP handles grievances and compensates its employees.Being students of business administration and on our way to graduation getting into the most eligible organizations hang ons top priority and of courseNational Bank of Pakistan remains top of the list. Obviously getting the group chief of HR, Dr. Mirza Abrar Baig, to talk to us s public treasury remains a big deal so we remained short of meeting him instead we got an oppugn with Mohib-ur-Rehman Khan who is the manager-employee communication of Human resource management and administration group and, we might add, sits right ext to the Group chief who also told us as mentioned earlier what the group chief had to say regarding our research. Here are mentioned some of the questions we asked and his answers. Q Sir, please tell us what type of hiring takes place at NBP? A Certainly. NBP hires in two different ways. One is Contractual hiring and the other is hiring of the main management trainees. Contractual hiring is when we employ someone for three years and thusly when the contract is about to end we reconsider and sign a new contract. Main management trainees comprise 50% of the attraction for our pool of candidates.These are the employees to receive proper management training for higher posts. Q Your external and internal sources for recruiting? A Currently we dont consider rehiring but we do focus on employee referrals and if the person who is retiring is valuable to us and no equal has been found out yet to take that place then we often stop the retired personother than this, as I said earlier, reemployment on contract does take place of that person is hired on contract initially. If and when internal candidates are recruited they are applied to the position of MTOs for future top posts.External sources include m edia advertising but not through internet. We advertise in the National and Daily newspaper in one matter or twice. But we do college recruiting and have been done so quite successfully in the past. Q So what is the actual recruitment and selection process? A It is very simple but often tedious and costly. We publish our criteria in the newspaper. Through various sources of which are mentioned above, applicants fill out application forms and submit it to us. at once the applications are accepted there are written tests which are held by IBP (Institute of Bankers Pakistan).These written tests are both a mix of personality, aptitude and skill tests ground on the persons analytical and communication skills. These are based on the GMAT/GRE format. After the applicants are selected through these tests they are passed through group discussions and plank interviews. These interviews are structured and judged on equal basis. For both types of hiring, first interview consists of a panel of 3 IBP and 1 NBP member and then for the second interview a panel of 2 IBP and 2 NBP members sits. Q What is NBPs educational criterion for hiring?A NBP requires an MBA degree (Masters in Business Administration) with a minimum 3. 0 CGPA. Q What do you look for when recruiting personnel? A We like to hire applicants who are team players with excellent interpersonal skills, have knowledge and use of information technology, have watertight analytical and problem solving skills and have excellent written and verbal communication skills in English. So when they tell you in graduation school to underscore on English, they are not wrong. Q What happens after selection? A After selection on-the-job training starts.These include simulations and video simulated training. They have 27 weeks training with IBP, then 27 weeks training with NBP staff colleagues, then 54 weeks training on job and then they are on their own aboard. All the while during training they are paid their salary. Afte r this they are designated to posts in small cities and sent there for a period of three years and then if a proper appraisal comes in welcomed to work at the head-office. Once they get out of training groups of executives and officers are decided fit to their skills and achievement of objectives.Thus NBP follows readiness based job analysis. Q What about EEO laws? A We follow all rules. Equal employment opportunity is not violated by NBP. We have set the hiring quota for the alter up to 2%. Recently we hired a blind lady in the telecommunication department. We do hire blind, deaf or applicants who are ill due to polio. Q What can you tell us about absorbed hiring? What does the bank do if it comes across a person who has had, lets say, a unfit record? A As I said, NBP follows all the rules.As the recruitment and selection is both costly and time consuming we dont want negligent hiring on our hands. Thus we make sure proper guidelines are followed. All the background checks reg arding certificates and other educational documents and reference calls are handled by the IBP. Once the salary pay check comes in, first rounds are made and police report is requested from the police department while on the other hand the person for whom verification is being performed is notified of it all. After the police verification report comes in then only the salary is paid.If there is someone who is identified with a whitlow background or false referrals he is told so and asked to withdraw. His information is kept secret (need for privacy). Targeted firing has not been started yet or else the employees go to court. Q How is appraisal coupled with recruitment? A When appraisal comes in, promotions happen. Seats are vacated and we get the number to employ. This was all we discussed here from Mr. Mohib. While wandering about and reading the HR missionary station statement and vision we tried to look on into other departments but with little success.At around late after lunc h we got some little time blessed upon us and ultimately met the AVP/Head of Personnel Administration, Mr. S. Hasan Akber Zaidi, of the Personnel and Industrial Relations Division. We grabbed the opportunity to ask some questions about how the HR at NBP handles the various grievances that come in. Q Sir, please tell us what actually does the personnel department do? A We basically look into promotions, leave and absences, whether any mishap occurs and also keep record that all due liabilities of the employees are cleared. Q Promotions would mean that you also look into appraisal reports (ACRs)?A We basically have a policy department that makes all the policies for promoting and appraisals and also a separate department who handles appraisals but, yes, we do look into appraisals to know whose being promoted to what extent and how much an increase in salary takes place and how the others would be affected by it. In 1984, when I got hired there was no such thing as a union but now the re is and so we keep check as to whether no biasness occurs. Q Tell us something about the Industrial Relation Department? A They are the people concerned with the laws of the union.They make sure that no mishap occurs and in the case of employees going to court they keep check that all lawful procedures are followed in. Q what about the compensation procedures? A compensations are handled by the compensation committee. There is no concept of overtime here. We tend to provide a whole lot of facilities according to the posts the employees have and that can include medical, logistics other membership facilities. We also provide loans on land and property as well as other scientific things but keep a proper balance of these liabilities.Q What happens if an employee fails for some reason in paying his liabilities or disappears? A All employees have accounts. In situations like these, or when a fraud occurs, we seize and freeze the accounts of those employees. The matter comes into our hand then and until and unless the reasons will be cleared we dont let any kind of transaction occur. Q What happens when you catch some one doing a fraud or someone disappears? What if they do not notify you of the absences? A There is no concept of rehiring. We decide at the time we catch the fraud what to do with the person and he is notified of our intentions.Most of the time frauds are not tolerated because NBP has a lot on its hands to protect itself from. But there are exceptional cases where we have had some dilemmas and looking into the matter deep has often resulted in a get out solution. For example there was a case at Gujranwala where decision making was not easy. An employee of ours didnt notify us that he was going to take leave, didnt approve it and stopped coming to work. He was arrested by the police and the bank faced the problem as to let him back or not. The unauthorized absence and an FIR was a dangerous match. But the personnel department looked into it.Since the police arrest was made on the basis of a family quarrel and had nothing to do with any criminal offence, the bank allowed him back on the job. Such decisions require our foresight and logical reasoning. Again sometimes, retaining an employee is difficult and his grievances have to be handled in a different way and at other times a golden handshake has to be offered in order to let other people take someone elses place. Q What about promotions? A There is a continuous planning going on. Arent we all looking for the same things? A raise in salarya give way position. Its a mad race that we are running.Constantly we keep an eye on whose going to replace whom and with how much. sometimes its just not the work that lets you through. Its the connections as well but then these things happen. The important part is that you have to keep an eye open and know everyone. If your colleagues like youthen you are the head of the list. Q How efficiently does HR keep all these records? A We have been upgrading and are s till in the process of doing so. Everything will become computerized. In all total three hubs will be performed. Q Are any HR events held? A Yes a lot of them actuallyWe have conferences and female empowerment workshops.Also many dialogue sessions and quiz programs. With many thanks to the two executives who gave us much to think about we left their departments and headed towards the refreshments. OUR FINDINGS The bank has taken a number of HR initiatives to develop its workforce. Today banks have to survive in a highly competitive environment, where the demand for banking services is highly diversified and growing and changing rapidly. To meet the competitive challenges, NBP felt that it had to enhance the knowledge and skill level of its employees so as to gain a sustainable edge over other banks.Importance is being placed on upgrading the quality of human resource for higher and better performance and to meet the demand of growing competition. Not only ar e the employees being provided with the job related training to develop a talented human resource base at the bank, but qualified management trainees have been inducted, professionals have been hired to fill the skill gap, a talent pool has been created by identifying talented employees from within the bank throughout the country and placing them in important positions in all functional areas of the bank.All this was done with one purpose to develop a talented human resource base at the bank. In addition, the bank has gone a step further and has made concerted efforts to reduce the gender gap. The last four to 5 years, a change has been witnessed in the employment pattern, where more women have been employed at more responsible managerial positions, like those of female branch managers and female operation managers. While recruiting and selecting Management Trainee Officers, the bank management ensures that young and qualified females are offered equal employment opportunity. * TA LENT MANAGEMENTThe highest emphasis was laid on talent management as it is now globally recognized that talent is the critical driver of corporate performance and that an organizations ability to attract, develop, motivate and retain talent results in a major competitive advantage. Organizations that do better job for attracting, developing, motivating and retaining their talent boost their performance dramatically. * MANAGEMENT TRAINEE SCHEME Recruitment in the permanent cadre of the bank was kept in abeyance since 1995 and there was induction in the bank for nearly a decade in this category.To fill the skill gap the bank management obtained special permission from GOP for restricted recruitment in the permanent cadre on an annual basis till 2010. About 700 management trainees have been inducted till end 2007 from the start in year 2003. After a vigorous scholastic and on job training the management trainee officers were placed at responsible in high value branches all over the cou ntry. Their contributions in furtherance of culture change, infusion of contemporary work practices and overall growth in banks performance is noteworthy.The Management Trainee Officers have been placed in the fields of General Banking, HR, Compliance, Risk Management, Treasury, IT and Audit. The Management Trainee dodging of the bank has thus, proved highly successful and is being emulated by other financial institutions in the country. * TALENT POOL SCHEME There was realization by the banks management that there are many existing employees within the bank who had the necessary qualification, experience, skill and talent but due to one reason or the other their career growth had become stunted.Such employees were dispersed throughout the country and were required to be identified for proper placement. In line with the global corporate strategy of leading Fortune 500 Companies that the best people should be placed in responsible and key positions, the implementation of the NBP gen ius Pool stratagem has proved to be pioneering efforts in this direction in the Pakistan banking industry. Consequently, the first place over 200 employees were identified on merit through written test and interview and interview for selection in the NBP Talent Pool Scheme and posted in positions of higher responsibility.The implementation of the second accent is in process and it is envisaged that other batch of about 300 existing bank employees will be available under the scheme for placement in high value branches of the bank. * FEMALE BRANCH MANAGERS The demographics of Pakistan are slightly skewed reflecting a higher female population which to a great extent is underutilized and their contribution to the economic sectors of the country in thus less than optimum level.Currently there is very high scope of including this female population in economic activities as many of them are academically qualified to take up challenging job opportunities. In line with the Governments poli cy and vision of the banks President, NBP implemented a plan to empower the existing female employees of the bank and post them as managers in 10% of the banks branches. more or less 30 female branch managers were selected from the existing female workforce of the bank while 30 others were recruited for external source.These 60 female managers have been posted at branches after intensive training and initial performance results indicate that they have shown remarkable performance. NBP employees excelling in banking examination of the Institution of Bankers, Pakistan About four years ago the performance of NBP employees in banking examinations was quite dismal and it was the lowest in the banking sector. On account of the creation if an enabling environment with the managements encouragement and support for such academic pursuits besides various incentives, NBP employees today obtain the No. position in the country when compared to any other financial institution in terms of maximu m number of NBP employees qualifying in such examination. * AGRICULTURE FIELD OFFICERS The agricultural sector of Pakistan contributes the highest to the GDP of the country. National bank of Pakistan enjoys the greatest strength in term of branch network which is concentrated in the rural areas of the country. The bank was therefore adequately poised to provide a full range of specialized financial services at the doorstep of the farmer.In line with the government policy to boost the agricultural sector with its large untapped potential for growth, NBP the initiative of the of developing adequate HR base in the agriculture dominated regions of the country consequently, 100 agriculture officers were appointed having necessary agriculture based qualifications to guide, drive and provide financial access to the farmer for enhancing their agricultural produce. * CASH OFFICERS Counter service to the costumers has been given top priority by the bank in order to improve the promptness in delivery of basic banking service.To improve customer services, 300 cash officers have been posted through internal sources by promoting staff of clerical cadre. This also provided for employee empowerment and motivation in the past promotions in clerical cadre took over 10 years. Upon supporting(a) results of such initiative, we have, once over again internally advertised the position to induct another batch of cash officers which is going to be finalized shortly. * HIRING OF PROFESSIONALS Counter service to the costumers has been given top priority by the bank in order to improve the promptness in delivery of basic banking service.To improve customer services, 300 cash officers have been posted through internal sources by promoting staff of clerical cadre. This also provided for employee empowerment and motivation in the past promotions in clerical cadre took over 10 years. Upon encouraging results of such initiative, they have, once again internally advertised the position to i nduct another batch of cash officers which is going to be finalized shortly. * EMPLOYEE MOTIVATION Human motives are based on conscious and subconscious need filled in individualistic, hierarchical order.Generally, motivation includes the entire class of drives, desire, needs and wishes, all of which are different for different individuals and further differ in their importance at various times for the same individual. Managing employee motivation is always an extremely complex task. To continuously enhance the level of performance of the employees and attain the optimum level for ensuring the growth of the organization, it is the primary responsibility of all HR practitioners to continuously maintain employee satisfaction and high motivation levels.NBP utilized all HRM tools for enhancing employees motivation thereby, contributing to the banks record growth. Promotion and Career Progression During the last five years, 98% of the bank have been promoted at least once while, 45% of t his total strength have received two promotions. This is a major step towards ensuring employee motivation and high morale. Promotions of employee who perform well are made strictly on merit basis and in the most transparent manner. Such promotions have been made a stock feature so that high performing employees are rewarded and their efforts in the growth of the bank are recognized.Employee Compensation Pay Packages 2004, 2006 and 2008 were negotiated and implemented to the complete satisfaction of the employees and n the best interest of the bank. This was a major accomplishment in view of the highly charged intra-union and inter-union rivalries compounded by the transaction of HR responsibilities. During last five years increase in pay was a 100% for almost all NBP employees. The ensure compensation levels of bank employees in relation to the market, salary surveys have been conducted and salary adjustments are being made wherever required. THE BANKS INTERNAL CUSTOMER In order t o provide maximum satisfaction to internal customers, which is vital for motivation and innovation each employee of HR has been given specific responsibility with the agreed upon standard time for each activity. The performance of the individual in then continuously monitored for the actual time taken for each activity against the set standard, to measure the HR performance. This quantification and measurement of each HR activity has resulted in substantial progression in internal efficiency thereby, contributing to employee satisfaction and motivation. ACHIEVEMENT AND SPOT AWARDS A merit based culture has been established in the bank through implementation of achievement and spot awards for individual employees showing exemplary performance during the year or in an assigned task. The achievement award policy of the bank is a transparent system for rewarding high performing employees through achievement awards to 10% of the total employee strength every year. The policy of spot awa rd is basically for recognizing individual employees their one-off excellent performance.Performance appraisal system has been revised to replace the traditional subjective ACR to provide more objectively in evaluation and recognizing merit. This system has been implemented with effect from January 2007 for all executives and contractual employees. Further PAS will also be applicable to over 9000 regular officers w. e. f. 01. 01. 2009. Based on the evaluation of individual employees as per their performance appraisal, a system of pay for performance is being implemented to properly compensate relatively high performing employees thereby, strengthening the merit based culture. * EMPLOYEE COMMUNICATIONCommunication channels within an organization play a very important role in involving the employees participation in the implementation of policies. Through involvement in the implementation process, employees feel motivated to perform and establish their contribution in the overall grow th of the organization. The 1st phase of ECP has been faultless by 20 regions and about 8000 employees are already covered under the program. With a view to establish top-down and bottom-up communication, dialogue sessions with field functionaries of high value branches with the President have been held and constructive suggestion incorporated.Further to make the employee communication more effective regular bi-monthly publication of NBP Newsline and monthly publication of the Management draft have also been introduced. * LEADERSHIP DEVELOPMENT After the reorganization of the banks field structure and decentralization of power, Regional Management Teams (RMT) were formed at all 29 Regional Offices. These leadership positions were filled through a systematic selection of RMT Member on merit, in the most transparent manner and after qualifying through a rigorous selection process involving written tests, group discussions and interviews.The empowerment of Regional Management Teams a nd managers of branches through enhanced arbitrary powers for prompts decision making and assumption of higher responsibilities has motivated them to ensure high performance levels. Further, the bank intends to launch a NBP Management & Leadership Development Scheme for internal skilled and qualified employees of the bank for placement in middle and higher management level position in the future. * INDUSTRIAL HARMONYThe implementation of all HR policies depends to a great extent, on continuously maintaining industrial harmony within the organization. This has to be ensured through developing a mutual respect between the management and employee representatives. Mutual respect between the management and the CBAs as well as Officers representatives at NBP has been strengthened through trust building measure. These trust building measures included maintaining a continuous dialogue process with CBAs and Officers representatives.Industrial Relations Conferences were held to build better understanding of IROs and management policies, to ensure a ongoing harmonious environment. Industrial Relations Conferences are planned at Karachi & Islamabad for 2008. Additionally, the Employees Communication Program involving meeting at regional offices for staff are planned to create better awareness of management policies and the banks tradition of employee care. WHY WORK AT NBP? * NBP maintains its position as Pakistans Premier Bank with a capacious network abroad as well. The Bank currently has an employee has of over 15,000 employees worldwide. The various departments include Consumer Banking Corporate Finance Investment Banking Agricultural Banking Transactional Banking Operations Software Development and Automation Financial Control Treasury Internal Audit Risk Management & Credit Economic & Business research Training & Development Strategic Planning Human Resources * NBP has started several new programs to train its employees further to be prepared for the dynamic aspect of their job and to meet the challenges ahead. Besides a competitive financial package, NBP offers excellent working conditions, job satisfaction, superior leadership, and a conducive environment for growth. CONCLUSION It seemed impressive with the new HR department at NBP a major public sector bank, decked out in wood and glass, with people in and out trying to devise plans of how to boost up the morale of each and every working person there and how to recruit the best ones out of a whole lot. The steps taken for the strengthening of the HR base in NBP have been instrumental in achieving record performance. This has been empirically proved through KPIs received from the field.Nevertheless, to remain competitive they cannot be complacent and should adequately prepare their human resource for meeting the challenge of competition in the future. A goal setting meeting was held in December 3 and 4, 2007 and a complete road map has been prepared for the year 2008. The goa ls and objective for the year 2008 were firmed up with a view to identifying the right kind of people socializing them in the right direction, training them assigning tasks and roles that bring out their best, motivating them to put extra effort and creating conditions whereby the employees have a sense of fulfillment.This highly motivated effort will swear out to retain NBPs positions as the Employer of Choice. In recent times ,under the leadership of president Syed Ali Raza ,the banking has become conscious in promoting empowerment of women within the organization which not only requires a significant change in attitude but also immense modification in working culture. In view of this realization, national bank has accepted the abilities of women as component workers, and has started making the most of these potentials by assigning them managerial responsibilities.Currently, 63 branches are being headed by the females. The management under its female empowerment programme is comm itted to have 10 percent of NBP branches to be headed by the females. The management also considered the request for transfer of marry and unmarried female employees to their desired place of posting which is close to their parents and spouse. The bank management envisaged that a strong human resource injection is essential for the success on a sustained basis .The management trainees scheme was introduced management for attracting talent from all over the country having professional qualification particularly in the field of business management and commerce having proficiency in computer operation. The first batch of management trainees joined NBP in July 2003 to translate the idea. Up till now a total of eight batches have been inducted and of them have been posted to region and groups. In view of all these improvements that have been done we still remain controversial on the subject of getting employment in NBP.It is true that all gender biasness has been removed and extensive t raining has been organized keeping in view that talent needs to be recognized and appreciated. We also remain highly appreciative of the fact that since the development of the HR department and its focus on the issues of recruitment, selection, gender biasness, appraisals, compensation, EEO compliance, grievances and training, the fact that we would not have been able to gain so much cooperation of the people we interviewed at the bank without our own personal source speaks for itself for the kind of resources that still work in the public sectors.HR needs to finish it or maybe it is on its way. We may gather from the data we received that many haughty changes have come and are yet to come but are not negligent of the fact how and where what kind of biasness and sincerity is at work. While sit in any organization you learn to come out of the theoretical meaning of appraisals and learn in real terms. We all saw the positive changes and the esurient way in which the department was at work in NBP and know that strategically its trying to achieve the better part of the system, competing against the system in its own way.For the bank itself, the need of HR is being fulfilled which keeps its employees more focused and well looked after. Here are some tips for being better employees than others that during our case study we have gathered Educate yourself Many people promoted to new, senior position think that they can learn on the job, without any need for education in the new tasks. Yet, if you wanted to indulge in a new hobby, for example if you want to learn how to play a guitar, you would expect to take classes.The same principle applies to taking up a new position or moving to new company. Your natural ability needs reinforcement by acquire both general and specifics ways, how to do the work. Many companies fail to insist on this reinforcement. If the employer will not provide the learning, take steps to get it yourself. Master computers that you obtain acc ess to computing power, it is an indispensable extension of your own brain and capabilities. You must quickly master a word processing programme, email and a spreadsheet.Productivity aids like desk diaries and personal databases. Computer in many organizations now provide access to company files, colleges, message, customer, suppliers, collaborative, working and the internet. Strive for excellence The pursuit of the highest possible standards automatically points you towards achieving excellence. It you have achieve perfection in any activity, you must be the best, which is the proper objective in any context. In practice, aiming to improve skills bureau performing significantly better than your present standards, which are always imperfect.Remember that refusal to tolerate imperfection is a powerful force for success. Raise your standards However good you are at something, you can always improve. Similarly, however high the standards you have set for yourself and others, they can always higher. Apply to the total quality principle of continuous improvement to everything that you do. In a new position you may feel daunted by new demands and doubt your ability to tackle the tasks successfully. However, after the few weeks in the new role you will be performing well without difficulty.People tend to underestimate their power, which achieves the opposite of maximizing potential. It is better to overshoot and miss than never to try for the best of which you are capable. Learn a language Mastering other language makes a difference in negotiations and business relationships. It is also a valuable exercise for the mind. Cassettes and videos are effective learning tools but the best learning is interactive. You can sign up for the classes or use interactive media. Then take every chance to improve your skill.It will impress everybody, including your foreign business contacts. Share your knowledge Make sure that any courses you plan to attend are relevant to your work . Then do all you can to apply what you have learnt. Do not be deterred by less enlightened colleagues who may pelt scorn on what you have been taught. You can only discover whether those lessons have real value by putting them into practice in your day-to-day work. scarper on your new knowledge to colleagues, and make them your allies. Be the bestJust like runners, managers and organizations needs opponents, or at least pace-setters, to produce their best performance. The process known as benchmarking measure comparable performance to set targets that they seek to exceed. The defect in this approach is that the benchmarks may themselves be too low. You want to be the best at what you do. That means looking at the performance of the others to see not just what they do well. Being the best means setting new ways, this drive for rejuvenate can be very demanding, but also highly rewarding.