Transcript HR Policies of NBP

HR Practices in
National Bank of
Pakistan
Group members
Sahar Naeem
Saima Bilal
Shabnam Mushtaq
Robina Taj
Tahira Tabassum
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Contents
Introduction
Human
to National Bank of Pakistan
Resource department at NBP
Organizational
Human
chart of HR department
Resource Planning and Forecasting
Employee
Training
Recruitment & Selection
and Development
Performance
Employee
management
compensation and benefits
Introduction to National Bank of
Pakistan
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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
Human Resource department at NBP
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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
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1.
2.
3.
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Main purposes of this culture change process were:
Transformation of NBP from service organization to service/profit
earning entity
Introduction of technology based infrastructure eliminating old
manual ledgers
Induction of highly educated and professional employees in the bank
through all Pakistan open merit written examination conducted by
Pakistan Banking and Finance Services Commission
For this purpose a separate Group has been created in the bank to
handle HR matters It is called Human Resource Management and
Administration Group and it is presently being headed by Dr. Mirza
Ibrar Baig.
HR Mission
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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:
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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
Secretary
Coordinator
Institutional
Discipline
Wing
Recruitment &
Selection
Legal Affairs
Staff Loans &
Welfare
OD&T Wing
Industrial
Relation Wing
HR Policies &
Project
Personnel
Administration
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.
b.
c.
d.
e.
f.
Developing plans, policies, and systems to satisfy HR
needs
Setting human resource objectives and deciding how
to meet them
Ensuring HR resource supply meets human resource
demands
Comparing forecasts of demand and supply
Planning the actions needed to deal with anticipated
shortage or overages
Feeding back HR information into the strategic
planning process
Human Resource Planning and
Forecasting (cont..)
HRP process at NBP
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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.
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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
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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
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Sales and production forecasts
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Effects of technological change on task needs
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Variations in the efficiency, productivity, flexibility of
labor as a result of training etc
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Changes in employment practices
subcontractors or agency staffs etc)
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
(e.g.
use
of
Variations, which respond to new legislation, e.g. payroll
taxes or their abolition, new health and safety
requirements
Changes in Government policies
Forecasting as a Part of Human
Resource Planning
SUPPLY
FORECASTING
Choose Human Resource
Programs
Determine
Organizational
Objectives
Internal Programs

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
Demand
Forecast For
Each Objective


Aggregate
Demand
Forecast
Promotion
Transfer
Career
Planning
Training
Turnover
control
Internal Supply Forecast
Does
Supply
Meet
Demand?
External Programs

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
Recruiting
External
Selection
Executive
Change
External Supply Forecast
Aggregate Supply Forecast
NO
YES
Go Feasibility Analysis Steps
Employee Recruitment & Selection
Recruitment of staff is preceded by:
1.
2.
3.
Job analysis
In the case of replacement staff a critical questioning
of the need to recruit at all (replacement should rarely
be an automatic process)
Use external expert consultants for recruitment and
selection
Equally organization may seek help from 'head
hunters', to recruit executives
5. Recruitment and Selection should screen for suitability
of applicants as poor selection costs a lot even for the
mundane day-to day jobs
6. NBP strictly follows merit policy for recruitment and
selection of employees in the bank
4.
NBP recruitment process
Recruitment &
Selection
Advertising
Bank Sources
Institute of
Bankers Pakistan
Evaluation Criteria
Personality Test
Interviews
Background
Checks
Sources of Candidates
Internal Sources
1.
HR Group Head Office Karachi
All the Groups in NBP
Regional HR Wings
Special products divisions
External Sources
2.
1.
2.
3.
Industry
Educational institutions
Institute of Bankers in Pakistan
Employment selection process
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As per requirement of the bank, the HR group
circulates details of all the vacancies in all the
branches through Regional HR Departments
Applications are screened of internal applicants and
suitable candidates are called for interview after
scrutiny
Employment selection process
(cont…)
Advertisement in Media
Applications, CV’s from Prospective Candidates
Shortlisting at HR group, Head office Karachi
Call Letter for Written tests by IBP
Shortlisting and Call Letter for Interviews
Selection of Candidates from Interviews
Job Offer Letters , Orientation and Training of Successful Candidates
Job Opportunities in NBP
1.
Management Trainees
2.
Professionals
3.
MBA lady officers
4.
Customers Facilitation Officers
5.
Cash staff
Training and Development
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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
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
Employee development
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It is based on TNA of an employee
Special training programs are arranged by
Organizational Development and Training Wing
headed by Executive Vice President Mr. Muhammad
Hanif at NBP
OD&T Wing formulates education and training
programs for all levels of employees from
executives to lower management
NBP has various Staff colleges across Pakistan for
this purpose
Types of Trainings at NBP
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Know your customer & Anti Money Laundering
(KYC, AML)
Basic Foreign Exchange
International Banking
Credit Risks and how to counter Risks
Frauds/ Forgeries detection and prevention
New Account Opening
Employees Communication Programme
MS Office courses
Management Courses
Annual Appraisal Formats
Employment Training and
Development Methods
1.
2.
3.
4.
5.
6.
7.
8.
Work shop
Dialogue Sessions
Quiz Programs
Lectures by NBP resource persons or
professionals from other institutes
On job Training
Tours of Trainees to different offices
Seminars
On spot training by visits of resource persons to
the respective regions
Performance management
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Necessary
because
it
improves
organizational
performance via improving individual performance
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It identify individual potential, what can be done to
get better results from individual skills

Helps in Appraisals and Promotions
Category
Examples of Performance standards in
different departments
Standards
Business
Targets for Deposits, Advances, Profits,
Business Volume, Import/Exports, New
Products
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
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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
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Gives motivation to employees, help retain good staff, and
encourage employees to give their best
Employee compensation and benefit rules are decided by
government along with market mechanism
Good Employment Benefits in NBP ensure minimum turnover
rate
Employee compensation and
benefits (cont…)
Competitive Wage Policy
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At present, salary structure of NBP employees is much
better than its competitors. Besides basic pay, following
allowances are also paid to employees irrespective of their
grade or scale
House Rent Allowance (50% of basic pay)
Conveyance Allowance (minimum 90 liters of petrol to
clerical staff, 120 liter OG-III, 130 Liters OG-II, 140 to
OG-II, 240 TO AVP and so on.)
Utility Bill Allowances
Education Allowances
Medical Allowances (for medicines)
Maternity Allowances
Employee compensation and
benefits (cont…)
Spot Cash Awards:
They
are awarded for extraordinary counter service or adopting
precautionary measures to prevent frauds/ forgeries
Special Cash Awards:
Every
year, best performers are awarded with cash awards
ranging from Rs. 100,000/-to Rs. 500,000/- depending on the
grade of the employee
Mostly
managers are benefited from this award to motivate them
for procuring more business
Employee compensation and
benefits (cont…)
Annual Increase:
Employees
(AVP and above) get annual increase in their basic pays
depending on their performance, cost of living with increase rate
varying from 4% to 17%
All
other employees get their annual increase as per rate
announced by the Head Office irrespective of their performance
However
from the year 2009, concept of "Pay for Performance" is
implemented in NBP for all the officers and executives
Loan
Facilities
Motor
Cars for Branch Managers
Promotions
Employee Job Changes
Factors affecting the employee job changes are:
Specialized Assignments
Specialized Work Force
Introduction of Special Products
Job changes within organization
Transfers: maximum period for an employee to stay at one
place is three years in NBP
Separations
Terminations
Resignations
Retirement
Organizational career management
It is based on the policies of the organization
keeping in view following factors:

1.
2.
3.
4.
5.
6.
7.
8.
Resources
New developments
New products
New policies
Motivation
Promotions
New employments
NBP always stresses the need for career management
due to its ongoing development and progress to meet
the requirement of competitive environment prevailing
in the banking sector
Conclusion
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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