Hr Policies of Nbp

HR Practices in National Bank of Pakistan

Group members

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

ContentsIntroduction 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

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

Main purposes of this culture change process were: 1. Transformation of NBP from service organization to service/profit

earning entity2. Introduction of technology based infrastructure eliminating old

manual ledgers3. 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 ValuesNBP 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

President

Dr. Mirza Ibrar Baig SEVP /

HR Group

Coordinator Secretary

Institutional Discipline

Wing

Legal Affairs OD&T Wing Industrial

Relation Wing Personnel

Administration

Recruitment & Selection

Staff Loans & Welfare

HR Policies & Project

Regional HR Chiefs at RHQ

levels

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. Developing plans, policies, and systems to satisfy HR needs b. Setting human resource objectives and deciding how to

meet themc. Ensuring HR resource supply meets human resource

demandsd. Comparing forecasts of demand and supplye. Planning the actions needed to deal with anticipated

shortage or overagesf. 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

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.

Human Resource Planning and Forecasting (cont..)

Forecasting as a Part of Human Resource Planning

Determine

Organizational Objectives

Demand Forecast For

Each Objective

Aggregate Demand Forecast

Does Supply Meet

Demand?

Choose Human Resource Programs

Internal Programs

Promotion Transfer Career

Planning Training Turnover

control

External Programs

Recruiting External

Selection Executive

Change

Internal Supply Forecast External Supply Forecast

Go Feasibility Analysis Steps

Aggregate Supply Forecast

NO

YES

SUPPLY FORECASTING

Employee Recruitment & Selection

Recruitment of staff is preceded by:

1. Job analysis2. In the case of replacement staff a critical questioning of the

need to recruit at all (replacement should rarely be an automatic process)

3. 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

NBP recruitment process

Recruitment & Selection

Advertising Bank Sources Institute of

Bankers Pakistan

Evaluation Criteria

Personality Test Interviews Background

Checks

Sources of Candidates

1. Internal Sources

HR Group Head Office Karachi All the Groups in NBP Regional HR Wings Special products divisions

2. External Sources

1. Industry 2. Educational institutions3. 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…)

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 ProcessTraining 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 etcb. Group needs like teams, groups, needs of group as a wholec. Organizational needs like environment, competitors, peers, etc

4. Quantitative/qualitativea. Problem identification & analysisb. Comparison/ bench markingc. 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. Know your customer & Anti Money Laundering (KYC, AML)

2. Basic Foreign Exchange3. International Banking4. Credit Risks and how to counter Risks5. Frauds/ Forgeries detection and prevention6. New Account Opening7. Employees Communication Programme8. MS Office courses9. Management Courses10. Annual Appraisal Formats

Employment Training and Development Methods

1. Work shop2. Dialogue Sessions3. Quiz Programs4. Lectures by NBP resource persons or professionals

from other institutes5. On job Training6. Tours of Trainees to different offices7. Seminars8. 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

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

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

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 compensation and benefits (cont…)

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. Resources2. New developments3. New products4. New policies5. Motivation6. Promotions7. New employments8. 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