HR Practices in National Bank of Pakistan

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HR Practices in National Bank of Pakistan
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Group members

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

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Contents

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

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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

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• 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
• 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.

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• 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

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Organizational Chart of HR department
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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
• 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 and 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

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HRP process at NBP
Human Resource Planning and Forecasting (cont..)

• 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

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Methods of forecasting HR needs
Human Resource Planning and Forecasting (cont..)

• 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).

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Factors Affecting HR Forecast and Planning
Human Resource Planning and Forecasting (cont..)

• 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 NBPs portfolio for e.g.
  Competitors etc.

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Forecasting as a Part of Human Resource Planning
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Employee Recruitment Selection

• Recruitment of staff is preceded by
• 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
• 4. 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 day-to day jobs
• 6. NBP strictly follows merit policy for
  recruitment and selection of employees in the bank

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NBP recruitment process
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Sources of Candidates

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

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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

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Employment selection process (cont)
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Job Opportunities in NBP

• Management Trainees
• Professionals
• MBA lady officers
• Customers Facilitation Officers
• Cash staff

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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'

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Need of Training and Development

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

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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

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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
• ODT 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

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Types of Trainings at NBP

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

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Employment Training and Development Methods

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

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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

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Examples of Performance standards in different
departments
Category Standards
Business Targets for Deposits, Advances, Profits, Business Volume, Import/Exports, New Products
Operations 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 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
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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

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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

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Competitive Wage Policy
Employee compensation and benefits (cont)

• 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

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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

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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

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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

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Organizational career management

• It is based on the policies of the organization
  keeping in view following factors
• 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

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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

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Thankyou