Professional Documents
Culture Documents
MCB Stretegic HRM
MCB Stretegic HRM
Pen can do what the sword cannot I express my gratitude to Almighty Allah for his unlimited graciousness because Words are scarce and knowledge is limited to express his majesty. I have the pearls of my eyes to admire the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah who is the entire source of knowledge and wisdom.
Due to his blessings, I become able to contribute this comprehensive assignment towards the deep ocean of knowledge already exist. Heart is warm with love and thoughts have turned to the city of knowledge The Holy Prophet (P.B.U.H) His saying Learn from to Cradle to Grave inspired the strong desire in me to undertake this course of valuable studies. I deem it as a great opportunity to offer my heartiest gratitude to my venerable teachers Jawed Ahmad and Khizar Hayat, Deptt. Of Business Management Sciences, Allama Iqbal Open University; for their great efforts to make us understand and to conduct this kind of activities of giving the great opportunity for learning beyond your existing area of scope.
I am thankful to Bashir Ahmad shahbaz, bank manager Model Town branch, Bahawalpur, for his nice co-operation and proper guidance throughout my internship. I express my heartiest and sincerest sense of gratitude to all of them for providing me grand exposure to gain multifarious experience, May Allah The Almighty bless my parents and well-wishers who are the permanent source of prayers for me and my successes in this world.
Table of Contents
TOPICS
PAGE #
01 02 08
1. Introduction & Objective of Studying the Organization 2. Role of Sector and the Organization Commercial Banking in Pakistan
09 14 15 21 22 23 33 34 41 45 48 51
3. History of Muslim Commercial Bank Historical Background of MCB Privatization of MCB Vision and Mission Statement Values and Functions of MCB Awards and Achievements of MCB
6. Human Resource Management Process in the Organization 6.1 Human Resource Planning and Forecasting HRP Process Forecasting HR Requirements Methods to Forecast HR Needs
54 55 55 56 56 57 62 62 63 65 71 73 80 84 85 91 94 96 99 100
6.2 Employees Recruitment and Selection Sources of Candidates a) Internal Sources b) External Sources Employment Selection Process
6.4 Performance Management Setting performance standard and Expectations How performance Reports are Written
103 103 104 105 106 106 107 108 109 110
8. Critical analysis of the Theoretical Concepts relating to Practical Experience 115 SWOT Analysis PEST Analysis 115 118 120 125 128 131 136 137 138
9. Policies of MCB 10. Self- Experience 11. Conclusion 12. Recommendation and Suggestions 13. References 14. Abbreviations 15. Appendices
LIST OF TABLES
Table No. Description PAGE #
Bank Position in 1973 Bank Position in 2000 Scheduled Banks Compliance Status of MCB Pattern of Shareholdings Board of Directors Corporate Profile of MCB Absolute Category Rating
18 19 20 28 30 31 32 88
LIST OF ILLUSTRATIONS
Figure No.
Description
PAGE #
Figure-1: Figure-2: Figure-3: Figure-4: Figure-5: Figure-6: Figure-7: Figure-8: Figure-9: Figure-10:
Organizational Hierarchy of MCB Branch Network of MCB Divisions of MCB HRM Department of MCB Recruitment Process Training Process Elements of Performance Management System Organizational Reward system Individual Career Path Labour Management Relations within Organization
47 48 49 53 59 72 93 95 102 113
Executive Summary
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 1000 branches, over 850 of which are Automated Branches, over 450 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost. During my internship in MCB, I worked in HR department and I successfully completed all the task/duties that were assigned to me. During the course of internship, I learned about different functions performed by HR as a whole. I also learned banks correspondence with their employees and within branches. I learned about documentation requirements and record keeping for different activities and processes, especially the documentation requirement for different kinds of HR activities.
1. Introduction of the report 2. Scope of the study 3. Purpose of studying in MCB 4. Objectives To present the importance and purpose of MCB To discuss the MCBs Effort Discuss about the needs and wants of MCB Improve personal Skills
Purpose:
Internship is the capstone experience that provides me with hands-on, realworld experience in a work setting. Ideally, internship will enable interns to: (a) Integrate and use my knowledge and skills from the classroom, (b) Discover where further competence is needed,
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(c) Take steps to gain that competence under educational supervision, and (d) Become better acquainted with the types of work settings in which such competence can be applied.
Scope:
This study will facilitate the students regarding the working of Banking sector of Pakistan because most of the teachers during their lectures use the examples of Banks like MCB, National Bank, UBL, Bank Al Falah and many others, students should study this report so that they must grasp the functioning of such Banks.
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Objectives:
I worked as an internee in MCB Model Town Branch. The main objectives to study in MCB were: To get some experience in working with well reputed organization. To gain knowledge about the professional environment of the bank. To know about the technology utilized in the banks. To deal and manage with the situation of stress.
Methodology:
There are mainly two methods that are used for the collection of data.
Primary Data:
Observation of functions of Branch operations on the spot. Observation of different processes of Branch on the spot.
Secondary Data:
Internet is very helpful for me to study more about banking sector of Pakistan. Different type of booklets of the Bank. Annual reports Journals Newspapers
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Organization:
MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,000 branches and over 450 ATMs in the market. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base.
Summary:
This is the first chapter of the report containing the detail introduction of the report. Internship training program during Master in Business administration Program is necessary for the partial fulfillment of the completion of Degree of Master in Business Administration. Internship will enable interns to integrate and use my knowledge and skills from the classroom. This study will facilitate the students regarding the working of banking sector of Pakistan.
For achieving my purposes, objectives and for the preparation of the internship report, I required some kind of data, I used both methods of data collection that are primary sources and secondary sources for that purpose.
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1. Current situation of banking sector in Pakistan 2. Commercial banking in Pakistan 3. Importance of MCB in banking sector 4. Role of MCB in the economic & social development of Pakistan
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great improvement and growth is observed since the formation of Pakistan. For studying the growth of this sector we can divide it into three stages, which are as follows:
At the time of partition there were 631 bank branches in area which came under Pakistani control. But due to bloodshed and violence at large scale, mostly branches were closed and the disparity can be assessed from the fact that on July 1948 there were 195 branches with deposits of Rs.88 crore (880 million) only.
Also a factor lagging in Pakistani industry was a central bank of its own, by that time Reserve Bank of India was acting as central bank for both countries and same currency notes were used in both territories. But Reserve Bank of India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc.
In this period drastic steps were taken in government sector for the improvement of overall position. The private sector also responded to these changes and some very positive changes were observed. Some of the steps taken by the government in this regard were as under:
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1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948. 2) Setting up of National Bank of Pakistan in November, 1949 to control the 'jute' export in East Pakistan and to act as agent of SBP. 3) Larger powers were given to SBP through SBP Act (1956) for controlling purposes. 4) Banking Companies Ordinance 1962 for protection and guidance to banks. 5) Establishment of specialized banks, such as ADBP (1952);
a) HBFC (Nov, 1952); b) P1CIC (Oct, 1957) c) IDBP (Aug. 1961); d) NDFC (Jan, 1973).
These were the steps, which built a strong banking sector in Pakistan. This is also obvious from the facts that by 1973 there were almost 10 foreign banks were working in Pakistan and all over deposit position was around Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given below:
DEPOSITS BANK HBL NBP UBL MCB ABL NO. OF BRANCHES 667 579 497 506 145 (Rs. In Millions) 6,160 5,660 5,670 1,640 570
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B) Nationalization Period:
On January 01, 1974 all Pakistani banks were nationalized through Nationalization Act 1974. Under this law all Pakistani banks became a public property. All small banks were merged in bigger banks to create 5 major Pakistani banks Pakistani banks.
These banks were to control by Pakistan Banking Council. There are still controversies about this act of government as whether it contributed in success of failure of banks. However the major changes after nationalization were as follows:
Working of banks was extended to under developed areas. Market expansion for credit and deposits. Decrease in service level of bank officers. Decrease in profitability as well.
However the effect of expansion was enormous and it can also be depicted with the help of table 2 which shows the deposit & branch positions of different nationalized banks. Table 2-BANK POSITION IN 2000
DEPOSITS BANK HBL NBP UBL MCB ABL TOTAL NO. OF BRANCHES 1926 1448 1684 1288 750 7096 (Rs. In Millions) 153,431 128,679 87,482 50,013 33,757 453,362
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Along with this a permission to open banks in private sector was also granted. The rules regarding establishment of new banks and for incoming foreign banks were also relaxed.
The-three privatized banks are; a) MCB taken up by a private group in April, 1991 b) ABL taken up by its own employees in September, 1991.1 c) UBL taken up by UAE party in 2002.
After these changes a large number of private and foreign banks started their operations in Pakistan and the present status can be seen from the following figures:
Category Nationalized Commercial Banks Private / Privatized Commerce Banks Public Sector Specialized Banks Foreign Banks Total Schedule Banks
No. of Banks 3 18 4 19 44
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1. History of Muslim Commercial Bank 2. Privatization of MCB 3. Developments made after privatization 4. MCB as an organization 5. Organizational Profile of MCB 6. Compliance status of MCB 7. Pattern of shareholdings 8. Board of directors 9. Corporate profile of MCB 10. Vision and Mission statement 11. Values & Functions of MCB 12. Awards of MCB
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The first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first chairman. It was incorporated with an authorized capital of Rs. 15 million.
After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, now recently the Head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office.
This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs. 1,640 million. Although. MCB has a reputation of a conservative bank but nationalization also left its effects on this institute as well and by end of year 1991 in which it was privatized the total number of branches were 1.287 and deposits amounting to as high as Rs. 35,029 million.
When privatization policy was announced in 1990, MCB was the first to be privatized upon recommendations of World Bank and IMF. The reason for this choice was the better profitability condition of the organization and less risky credit portfolio which made'' it a good choice for investors.
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On April 8th, 1991, the management control was handed over to National Group (the highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.
Privatization:
A wave of economic reforms swept Pakistan in the lattes introducing the Need for privatization of state owned banks and companies. This was the first bank to be privatized in 1991 and the bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group. Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country.
Developments:
After privatization, the growth in every department of the bank has been Observed. Following are some key developments:
1.
2. Increased participation on foreign trade. 3. Betterment of branches and staff service level. 4. Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan.
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5. Extended use of information technology which is evident from the fact that there are 768 fully automated branches, 243 online branches (integrated networking), 151 ATMS in 27 cities nationwide and MCB continuously innovates new product.
MCB AS AN ORGANIZATION:
Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers ensuring that it not only meets, but also exceeds their expectation. The Bank has a customer base of approximately 4 million. They strive to achieve excellence by ensuring that every moment of their time is spent in adding value, making sure that they do things right, first time, and every time. With the quest of quality MCB has always taken initiatives bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face to face customer interaction to online accessibility.
MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multinational concerns. MCB is also catering to the growing middle class by providing new asset and liability products. MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 63 years in Pakistan, the Bank provides 24 hour banking convenience with a network of over 1000 branches, the largest ATM network in Pakistan over 450 ATM locations in the market.
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Profitability:
MCB is Pakistans fourth largest bank by assets having an asset base of US$ 5.9 billion, and the largest by market capitalization having a market capitalization of US$ 1.8 billion. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,081 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of over160 million. In 2009, MCB reported a profit after tax of PKR 15.5 billion (appx.US$183 million) and generated a return on average equity of 27.35% and a return on assets of 3.25%. The Banks asset quality is strong with a gross NPL ratio of 8.62%. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its nonperforming loans via improved risk management processes. MCB has 1081 branches (as of 31st December, 2009) including local branches, and business establishments in Sri Lanka and Bahrain including newly established Rep. Office in Dubai, UAE. The Bank has also formed a private company in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. MCB has been successful in turning around its operations since its privatization and is moving forward to set high performance standards with the continuous support of its customers and leadership in banking technology. To further strengthen its financial services base, MCB has also incorporated an Asset Management Company in the year 2005 known as MCB Asset Management Company. MCB has also incorporated a leasing company in Azerbaijan in 2009.
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Fully Owned Subsidiaries of MCB are: Muslim Commercial Financial Services (Private) Limited MNET Services (Private) Limited MCB Trade Services Limited MCB Asset Management Company Limited MCB leasing (Closed Joint Stock Company) The Bank has achieved this success, especially in the last few years, through consolidating corporate banking operations, strengthening retail banking, launching diversified and innovative products, giving more focus to consumer financing and investing in IT.
Business Strategy:
The business strategy of MCB is to provide financial solutions to major segments of its customer base, namely retail and corporate. Separate business groups have been set up to ensure a more focused approach in satisfying the diversified customer segments. The Bank has also established an Islamic Banking unit to offer Shariah compliant products and services, with dedicated Islamic banking branches in six cities. The plan for future is to further realize the capacity of Islamic Financial Systems and to bring Shariah compliant network parallel to current retail network of traditional banking. Wholesale Banking Group caters to the top tier local and multinational companies. As a result of organizational restructuring, including reinvigorating Investment Banking and beefing up relationship teams, the Group is in line with the industrys best practices. MCB has closed some large deals and is currently working on a number of large transactions including advisory business. It is a strong competitor in cash management and structured financing activities. Retail Banking Group focuses on trading and middle market segment primarily for building risk assets and trade related business. MCB caters to their needs of financing foreign and local trade, funds transfer and other seasonal requirements.
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The Bank has renovated a large number of branches and staff has been trained for meeting the requirements of SMEs and other retail customers. A separate SME Financing Division has been set up to provide customized financing solutions to this very important segment of the economy. The Group also focuses on the development of innovative consumer asset products for satisfying the personal needs of the customers. MCB has a significant share of consumer financing business with its House and Car Financing schemes. The recently launched running financing facility against the mortgage of property is also expected to go a long way in increasing the quality consumer credit portfolio of the bank. With the experience gained in the past few years, the Bank is fast progressing towards becoming the leading bank in consumer business.
Information Technology:
MCBs name is synonymous with ATM facility in the country as the Bank has been a pioneer in introducing 24-hour cash withdrawal facility and on-screen transactions. MCB ATM/Debit Card, the most multifunctional card of the country, with its collaboration with Cirrus and Maestro can be used globally. The Bank has also deployed an extensive network of Point of Sale Terminals at thousands of merchants in major cities of the country, thus having the privilege of being the first and only bank with full-fledged card acquiring and issuing systems. The Bank also pioneered the idea of sharing its ATM network with other banks by establishing an electronic platform for enhanced network accessibility and secures on-line transactions. MCB mobile banking was launched in mid-CY09, and volumes on the platform have already crossed the PKR 1 billion mark. While the services are free for now, going forward this entails improvement in fee income as well as generation of sticky zero-cost deposits.
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Technological leadership has helped the Bank in providing multiple delivery channels to the customers and satisfying their needs anytime & anywhere in the world. MCB offers the most comprehensive Internet banking solution in the country. MCB Virtual-Internet Banking with its wide ranging banking solutions for the customers for individual as well as corporate customers has become the most preferred Internet banking solution in the country.
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Organization Profile:
Name of Organization: Chairman: Location: Branch code: Phone: UAN: Website: MCB Limited. Main Mohammad Mansha Model Town Branch, Bahawalpur. 0187 +92-042-7727456 / 7720054 111-000-622 (MCB) www.mcb.com.pk
Table - 4
Compliance status:
MCB Bank Limited MCB 15 Main Gulberg, Lahore Public Limited Company. Listed on Karachi, Lahore & Islamabad Stock Exchanges in Pakistan. KPMG Taseer Hadi & Co.(Chartered Accountants). Commercial, Consumer, Corporate, Correspondent and Islamic Banking.
Legal Form
Main Banking
THK Associated (Pvt.) Ltd. Shares Department, Ground Floor, Modern Motors House Beaumont Road, Karachi
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Compliance Status
Compliant with KYC and AML regulations prescribed by State Bank of Pakistan.
Compliance Document required from Correspondent Banks Compliance Documents for Correspondent Banks
The Wolfsberg Group Questionnaire Procedures Handbook AML/KYC Questionnaire Filled-In By MCB USA PATRIOT ACT Certification USA PATRIOT ACT Recertification
Circulars
Registered Office
Principal Office
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Table- 5
Description
Directors, CEO and children Associated Companies NIT & ICP Banks, DFI & NBFI Insurance Companies Modarabas & Mutual Funds Public Sector Cos. & Corp. General Public (Local) General Public (Foreign) Others Foreign Companies Company Total
Shareholding
52,190,877 57,009,034 5,835 2,239,307 46,052,057 7,208,703 131,749,731 101,843,819 2,400,126 44,237,663 246,167,375 691,104,527
Percentage
7.5518 8.2490 0.0008 0.3240 6.6635 1.0431 19.0636 14.7364 0.3473 6.4010 35.619 100.00
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Table - 6
Board of Directors:
Board of directors - as of December31-12-2009
Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Mian Raza Mansha Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Mr. Abdul Farid Bin Alias Mian Umer Mansha Mr. Muhammad Ali Zeb Mr. Atif Bajwa
Chairman Vice Chairman Member Member Member Member Member Member Member Member Member Member President / CEO
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Table - 7
Corporate Profile:
Advisor Audit Committee Raza Mansha Mian Mohammad Mansha Mian umer Mansha Aftab Ahmad Khan Chief Financial Officer Company Secretary Auditors A.F.Ferguson & Co. Chartered Accountants Riaz Ahmad & Co.(Chartered Accountants) Legal Advisor Mandiwalla & Zafar Advocates & Legal Consultants
HR Committee
Ali Munir
Mian Mohammad Mansha Dr. Muhammad Yaqub Mian Raza Mansha Mr. Shahzad Saleemn Mr. M.U.A. Usmani
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To be the leading, financial services provider, and partnering with our customers for a more prosperous and secure future. Our vision statement underlies our aspirations to establish the MCB group as the benchmark reference for the provision of financial services in the region and even further, in line with the increased needs of our customers operating in the global economy.
Mission Statement:
Pursuing the voyage towards excellence...
We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us. Providing innovative Efficient financial solutions Long-term relationships with our customers Shareholders invest with confidence Our mission statement testifies to our unrelenting commitment to best practices in the provision of financial services throughout the group against the backdrop of creating shareholder value.
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VALUES OF MCB
Integrity:
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.
Respect:
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.
Excellence:
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.
Knowledge:
A strong commitment to nurture our human capital through lifelong development & learning toward achieving our goal described in our mission.
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Customer Centricity:
Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.
Innovation:
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.
Customer Care:
The assurance of providing quick, dedicated and unrivalled services to our valuable customers.
Team Work:
Our approach, towards synergistic potential among our people between the companies of the group alongside leveraging individual skills & competencies.
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FUNCTIONS OF MCB
Basically there are two basic categories on the basis of functioning of MCB Bank, which are: Principal function Auxiliary function
Principal function:
The principal functions are basically the core functions of the bank that is their lifeblood of bank, which are o Acceptance of deposits o Financing
o Deposits:
There are basically two types of deposits and their nature vary due to time factor, which are described below:
Demand deposits:
The demand deposits have no legal restriction on drawing of the deposited amount and the cash is readily available on demand without any conditions
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o Current deposits:
The current deposits are non-interest bearing deposits and earn the most for banks as there is no cost for the banks but the depositor can claim no interest whatsoever.
o Saving deposits:
The saving deposits are the interest bearing deposits and although there are no such restrictions but it is mostly preferred for saving and salaried class and similar class clients deposit in this category to earn interest so no regular withdrawal takes place in this type of deposits.
Time deposits:
On the contrary the time deposits are deposits for a particular period of time and cannot be easily withdrawn on demand and if the amount is withdrawn certain penalty is levied on withdrawal before time. Time deposits are further categorized into two categories that are
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FINANCING:
The second important function of the MCB is to provide finances to the individuals and businesses against securities at a certain fixed rate of interest. As the different types of accounts in accepting deposits MCB also have the different types of account in which it provide the loan to its customers. Following are the different types of the accounts in which loan is made.
Demand Finances:
Demand Finances are those finances, which are given on demand. It is a single transaction. It can be long, medium and short term. Markup is also charged. Here the amount can be withdrawn once at the time of disbursement.
Running Finances:
It is always a short-term loan i.e., one-year. It can be withdrawn at any time and deposited at any time. It is basically for running day today business operations. This type of loan is provided to the person who has the strong relation with the bank.
Cash Finances:
Cash finances are for a limited period of time i.e., one year. It is advanced to people to complete the working process.
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Overdraft
This type of loan is provided to the individual that has very healthy position and they are allowed to draw up to the limit if there is no balance in the account. The rate of interest is charged on the daily basis.
Auxiliary function:
These are the functions that have the secondary position in the bank point of view. These functions are cause to attract the customer. Banks performs this kind of functions as per demand on the extra charges.
Collection of Cheques:
MCB acts as an agent to its customers in the collection and payment of cheques, bills and promissory notes. This is done on the behalf of the customer and MCB charges the commission.
Locker:
MCB also provides locker facility to its valuable clients. Where people can keep their precious ornaments.
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Collection of Dividends:
The bank provides a very useful service in the collection of dividends or interest earned on stocks and shares held by his customers. The customer is simply to inform the issuer of the securities that the interest on the securities is to be credited to his account in the bank.
Transfer of Funds:
MCB also transfer funds of the customers from one bank to another bank. If the transfer is at one station, they dont charge any commission and even if they charge, they charge on reduce rate
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amount equal to their face value after deducting interest at the current market rate for the period the bill has to mature. The bills of exchange are a very liquid asset for a bank to hold. These bills are usually drawn for three months and are used for financing internal as well as external trade.
Acts as a Referee:
MCB provides a useful service to his customers by acting as a referee for his credit worthiness. The information is supplied in almost secrecy and is based impartially on the respectability and financial standing of the client.
AWARDS OF MCB:
EUROMONEY AWARDS:
Best Bank In Asia Award 2008
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MCB has been awarded as a Euro money Award 2008 for the Best Bank in Asia".
Best Bank In Pakistan Award 2006 MCB has yet again received the esteemed Euro money Award for the Best Bank in Pakistan. It is the only bank to receive the Euro money Award for Excellence for the sixth time in the past seven years.
Best Bank In Pakistan Award 2005 MCB has again received the esteemed Euro money Award for the Best bank in Pakistan. It is the only bank to receive the Euro money Award for Excellence for the fifth time in the last six years.
Best Bank In Pakistan Award 2004 In a continuous winning streak, MCB once again takes pride in being conferred with Euro money's prestigious award of excellence, for being the "Best Bank in Pakistan" for the fourth time in the last five years.
Best Bank In Pakistan Award 2003 MCB believes in you. Together we work with quality, integrity and dedication, striving to achieve collective success by understanding changing trends and assimilating into diverse cultures. Your trust in our ability and our commitment to deliver has again won us the Euro money Award 2003 for the "Best Bank in Pakistan".
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Best Bank In Pakistan Award 2001 Your trust and our commitment is always an award winning combination MCB was awarded as a Euro money Award 2001 for the " Best Bank in Pakistan".
Best Domestic Bank Award 2000 MCB was awarded as a Euro money Award 2000 for the " Best Domestic Bank in Pakistan".
The Best Domestic Commercial Bank Award 2004 MCB has a distinction of winning the Asia Money 2004 award for being "The Best Domestic Commercial Bank in Pakistan".
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4- ORGANIZATIONAL STRUCTURE
1. Purpose clearly defined of MCB 2. Different operational departments of MCB 3. Planned design of MCB 4. Work specialization of MCB 5. Departmentalization of MCB 6. Formalization of MCB 7. Organizational Hierarchy of MCB 8. Chain of command in MCB 9. Span of control in MCB
4- ORGANIZATIONAL STRUCTURE
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As MCB is a banking company listed in stock exchange therefore it follows all the legalities, which are imposed by concerned statutes. MR. Mian Mohammed Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company.
A team of 10 professionals is handling operational management of the bank. MR. Mian Mohammed Mansha also heads this team.
Consumer Banking & IT Division Financial & Inter Branch Division Banking Operations Divisions HRD & Legal Division Financial Control & Audit Division Credit Management Division Commercial Banking Division Corporate Banking DivisionMCB is
Area Office South manages the operations in Sindh and Baluchistan while Area Office North is responsible for the activities in Punjab, N.W.F.P, and AJK. Each Area Office is in turn divided into circles. To make administration easier, each circle is divided into various regions. The regional offices are responsible for the affairs of the branches operating in their domain
Chairman
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Board of Directors
Principal Office
Overseas Branches
Bahrain
Sri Lanka
Punjab
NWFP
Sindh
Baluchistan
10 Circles
2 Circles
5 Circles
1 Circle
25 Regions
7 Regions
12 Regions
2 Regions
710 Branches
199 Branches
262 Branches
38 Branches
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Central Accounts
PTC and Master Card HRD Division Special Assets Management Business Dept and Marketing Control Accounts General Service Division Information Management Corporate Affairs O&M Division
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1. Human Resource Management Department 2. HR functions in MCB 3. Contribution of HR Department to the Business Strategy 4. Hierarchy of HRM Department of MCB
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THE HR FUNCTIONS:
At The MCB Ltd. because people are the key to its success, the Human Resource Department (HRD) champions the importance of the individual while thinking strategically.
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HR facilitates the creation of an environment in which people have the means to constantly evolve in striving for continuous improvement for the benefit of all stakeholders. Positioned as a strategic business unit within the corporate structure of the MCB, the HRD's has as its prime responsibility to contribute to the organizations effectiveness by engaging its people and aligning the policies and procedures and systems to the strategy of the business. It is through this that the HRD adds value to the institution. The Human Resource Department (HRD) facilitates and partners with its customers (MCB Staff) in implementing the planned strategy by adopting a Can Do Attitude. HRM department of MCB is shown in Figure-4. More specifically the HRD contributes to the business strategy through:
Competency based HR systems Policy and Procedures Developing Capabilities Performance Management Transparent and Open Communication Reward and Recognition Employee Satisfaction Diversity Compliance Human resource management department works for the betterment of the
employees. It enhances their skills, training management, service skills, service benefits, wages, medical facilities, staff loans are basic functions of this department.
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HRM PROCESS IN MCB Human resource planning and forecasting Employee Selection and Recruitment Training And Development Performance Management Employee Compensation And Benefits Organizational Career Management
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The HRM process consists of interrelated activities in Muslim Commercial Bank, i.e. Recruitment Selection Training Compensation and supervision
When applying the process diversity, labor laws and privacy is considered.
HRP Process:
These are steps of HRP in Muslim Commercial Bank. Determining the Objectives. Defining skills required to meet the objectives. Determine additional human resource requirements. Develop actions to meet the anticipated HR needs.
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Forecasting HR Requirements:
The purpose of forecasting of human resources is to estimate labour requirements at some future times period. Such forecasts are of two types. 1. The external and internal supply of labour 2. The aggregate external and internal supply of labour
Internal supply forecast relates to the conditions inside the organization, such as age distribution of the work force, terminations, retirements and new hires within the jobs. External supply forecast relates to hire the candidates from external labour market in order to fill the talent gap in the organization. Demand forecast is subject to many uncertainties like economic conditions, technological advancement and competition.
Zero-base Forecasting:
This method uses the MCBs current level of employment as the starting point for determining future staff needs in MCB.
Bottom-up Approach:
It is the forecast method in which each successive level of the MCB, starting with the lowest and forecasts its employee requirements in order to ultimately provide an aggregate forecast of employee needs.
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Simulation:
It is a technique for experimenting with a real world situation through a mathematical model representing that situation.
Some of the major components of Human Resource Policy are listed below in this chapter.
The caliber of the work force of an organization largely determines its strengths and its success as an enterprise. The employment policies of many organizations are not formalized. They have just evolved as practices over the course of many years. MCB is interested in attracting and hiring the very best people in the market. We understand the integral role you play in our continued success. We're committed to providing you with a candidate experience that is robust, transparent and gives you the power to make choices.
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The MCB has very orderly and impartial procedure for selecting people. In fact it is the only bank in private sector with such an extensive and irrefutable selection process. Human Resource Department has combined many selection techniques i.e. job application form, employment test, interview, and physical examination. Recruitment process is shown in Figure-5. The step to step Recruitment process followed by organization is: Job Analysis Planning Sourcing Screening Interviewing Hiring Reporting
1. Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it is called Job analysis. Job analysis is every important as job analysis information is used in Selecting and recruiting, compensation, performance appraisal, training and in resolving other issues which MCB faces. The methods which are used in collecting job analysis information are The interview Questionnaire
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2. Planning:
Planning includes both workforce planning and individual recruitment planning. Workforce planning typically focuses on forecasting staff and skill gaps in the most business-critical positions, while individual recruitment planning focuses on sourcing and screening strategies for specific vacancies.
3. Sourcing: Sourcing focuses on activities to attract both passive and active candidates. Common strategies include advertising, marketing at select schools and organizations, managing employee referral programs, and cross-marketing new positions to prior applicants.
4. Screening:
Screening focuses on creating a qualified pool of candidates to share with the hiring manager. Common activities include resume/application reviews for select qualifications, supplemental questionnaires, and formal testing.
5. Interviewing:
Interviewing includes in-person reviews designed to select a final candidate. Common strategies include peer interviews, panel interviews, and the use of behaviorally-based interview techniques.
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6. Hiring:
Hiring focuses on persuading the selected candidate to join the organization. Common activities include making the job offer, negotiating terms and conditions of employment, and all pre- and post-start on-boarding.
7. Reporting:
Reporting includes all post-hire data collection, monitoring, and reporting. Common activities include surveying applicants and hiring managers, collecting and analyzing applicant flow data, and reporting performance measures and processing metrics.
Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates for the organization. Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities. Recruitment is the process which links the employers with the employees. Increase the pool of job candidates at minimum cost.
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Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants. Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of its workforce. Begin identifying and preparing potential job applicants who will be appropriate candidates. Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants.
Sources Of Candidates:
Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of the recruitment.
1.
Internal sources:
I.
Transfers:
The employees are transferred from one department to another according to their efficiency and experience.
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II.
Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.
III.
Others are Upgrading And Demotion of present employees according to their performance.
IV.
Retired And Retrenched Employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.
V.
The dependents and relatives of Decreased Employees And Disabled Employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.
2. External Sources:
Some External Sources Of Recruitments are given below
I.
Press Advertisements:
Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach.
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II.
Educational Institutes:
Various management institutes, engineering colleges etc. are a good source of recruiting well qualified executives, engineers. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment.
III.
Placement Agencies:
Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment for executives and specialists. It is also known as RPO (Recruitment Process Outsourcing).
IV.
Employment Exchanges:
Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidate
V.
Unsolicited Applicants:
Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization
VI.
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Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union.
Recruitment and selection in MCB has many processes and steps that must be followed. Decide what positions to fill, through personal planning and forecasting Build a pool of candidates for these jobs, by recruiting internal or external candidates Have candidates complete application form and perhaps undergo initial screening interviews Use selection tools like tests, background investigations, and physical exams to identify viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps others
interview the candidates.
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Identify Candidates:
MCB identifies its candidates by developing the criteria of job description and job specification and acting upon these criteria job vacancy ads are spread through different Medias like newspapers and internet.
Test/ Interview:
In this process short listed candidates are called for test and interview according to nature of their applied jobs.
Selection Interview:
Selection interview is conducted for short listed candidates. A selection interview is the procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries.
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Modes Of Interview:
Penal interview:
An interview in which the applicant is interviewed sequentially by several persons; each rates the applicant on a standard form.
Types Of Questions:
Situational:
A series of job-related questions that focus on how the candidate would behave in a given situation.
Job related:
A series of job-related questions that focus on relevant past job-related behaviors. These types of questions are asked from those candidates who have past experience of job.
Stress:
An interview in which the interviewer seeks to make the applicant uncomfortable with occasionally rude questions that supposedly to spot sensitive applicants and those with low or high stress tolerance. These sorts of questions are asked according to high designation of candidate.
Puzzle questions:
Recruiters for technical and finance job use questions to pose problems requiring unique solutions to see how candidates think under pressure.
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Testing:
Organizational performance always depends in part on subordinates having the right skills and attributes. Keep in view this point MCB tries its level best to hire highly skilled and suitable employee for each job. For judging these skills MCB conducted some tests of employees on the basis of Reliability Test validity
The consistency of scores obtained by the same person when retested with the identical or equivalent tests is called reliability and the accuracy with which a test and interview what it purports to measure or fulfills the function it was designed to fill is referred as validity.
Types Of Test:
Generally two types of tests are taken MCB: Tests of Cognitive ability Physical test
2. Aptitude tests: Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability are aptitude tests.
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The candidate fills out specific application form. After screening the
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applications only selected candidates are called for test, which is designed to test the analytical, comprehension, and general knowledge abilities of the candidates. After passing the test, the candidate undergoes an interview. Those who pass the interview are referred to a medical board for physical examination.
Final Selection:
After going through all the processes the best candidates according to MCBs selection boards are selected. The candidates, who are finally selected, are offered appointments as probationary officers, after signing the following bonds 1. Banks Secrecy Bond 2. Banks Security Bond 3. Service Agreement Bond
Orientation:
Just after final selection and before starting of training process orientation is conducted for selected employees in orientation new employees are provided with basic background information about the MCB the basic contents of successful orientation are: o Information on employee benefits o Personnel policies o The daily routine o Company organization and operations o Safety measures and regulations
Training is the organized procedure by which people learn knowledge and/or skills for a definite purpose. MCB has a mix of training methodologies for its employees. We can broadly categorize these methods into five groups: Needs analysis: Identify job performance skills needed, assess prospective trainees skills, and develop objectives. Instructional design: Produce the training program content, including workbooks, exercises, and activities. Validation: Presenting (trying out) the training to a small representative audience. Implement the program: Actually training the targeted employee group. Evaluation: Assesses the programs successes or failures.
The goal of training is for employees to: master the knowledge, skill, and behaviors emphasized in training programs, and apply them to their day-to-day activities
Assumptions of Training Design Approaches: Training design is effective only if it helps employees reach instructional or training goals and objectives. Measurable learning objectives should be identified before training. Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process. In figure-6, the training process is discussed in detail.
-Needs assessment -Organizational support -Organizational analysis -Task and KSA analysis -Person analysis
Instructional Objectives
Development of criteria
Training Validity
Transfer Validity
Organizational Validity
InterOrganizational Validity
Effective training practices involve the use of an instructional systems design process. The instructional systems design process begins by conducting a needs assessment.
Needs Assessment refer to the process used to determine if training is necessary. Because needs assessment is the first step in the instructional design process: If it is poorly conducted, training will not achieve the outcomes or financial benefits the company expects.
Task Analysis involves: Identifying the important tasks and knowledge, skill, and behaviors that need to be emphasized in training for employees to complete their tasks.
Person Analysis involves: Determining whether performance deficiencies result from a lack of knowledge, skill, or ability (a training issue) or from a motivational or
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work design problem. Identifying who needs training. Determining employees readiness for training.
Performance Analysis: After analyze the main tasks required in performing jobs it is verified that there is a
performance deficiency and determining whether that deficiency should be corrected through training or through some other means (such as transferring the employee). If there is found some deficiency in performing job then training is highly recommended to recover deficiencies.
On-the-job Training:
Having a person learn a job by actually doing the job is OJT. Methods of OJT are: I. II. III. IV. Coaching or understudy Job rotation Special assignments Action Learning
Coaching or understudy:
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It is the OJT method in which employee is coached and taught by profession that how to do the job in order to meet MCBs goals and objectives.
At managerial level the trainee works directly with a senior manager or with the person he or she is to replace; the latter is responsible for the trainees coaching. It is done at all levels of job. New employees are trained through coaching and old employees are also trained through this method like when some new innovation is introduced old employees are trained in order to handle that new innovation. In 2008 all managers have been trained to operate Misys Software (Automation of service provision and book management).
Job Rotation:
Moving a trainee from department to department to broaden his or her experience and identify strong and weak points. Job rotation is usually done at managerial level. MCBs Manager Associate (MA) program is used for job rotation training.
Special Assignments:
Special assignments are also given to employees for special training. These assignments are actually related to tasks within the branch by achieving those tasks assigned by trainer, employee get training.
Action Learning:
Management trainees are allowed to work full-time analyzing and solving problems in other departments. This OJT method is just for managerial level employees.
Off-the-job Training:
It is the method which is opposite to the OJT. In this method employee does not get
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training at his/her work place. This method of training is only for managerial level employees. Off-the-job training methods are: o Case study method o Outside seminars
Outside Seminars:
MCB encourages its employees to participate in the seminars arranged by banking sectors not just in the Pakistan but also beyond the borders. By participating in outside seminars employee gets authentic knowledge about the new horizons of banking sector which is useful for MCB and makes it leading bank in Pakistan.
Apprenticeship Training:
A structured process by which employees become skilled workers through a combination of classroom instruction and on-the-job training. It is actually combination of OJT and lectures delivered to employees. It may be for both levels of managerial and fresh employee. In this method employee is first given the lecture about his/her job and after that implementation of lecture in practical field is observed.
Informal Learning:
The majority of what employees learn on the job they learn through informal means of performing their jobs on a daily basis.
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Effective Lectures:
Lectures about jobs are also delivered. These lectures are delivered to new employees as well as senior level employees and managerial level too. In these lectures employees are prepared for facing new challenges in the banking sectors and also told them how to achieve those challenges.
The objectives of training activities are to keep MCB employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels.
It is obligatory for each employee of the Bank to attend at least one training course (of a minimum duration of one full day) in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses at least
two weeks prior to the start of a training course. Employees may also take the initiative and get themselves nominated through their supervising officers for training courses relevant to their needs.
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The Bank has the latest state-of-the-art training facilities at its Training & Development Center (TDC) and a dedicated training team to look after most of the training needs of its employees.
MCB uses following programs for training and development Management Trainee Management associate Cash officers Internships
Management Trainee:
MCBs Management Trainee (MT) program looks for highly motivated individuals who exhibit the potential to excel as future leaders.
The program is geared towards providing challenging work assignments complemented by a learning component for select individuals from reputable universities. At MCB, the MT program offers extensive interactive classroom training, on the job rotations and personal mentoring from senior management to provide a comprehensive learning experience. The objective of the program is to realize potential and translate the experience into a successful banking career.
Management associate:
MCBs Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. It provides accelerated
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development opportunities across MCBs branch network of Retail, Corporate & Commercial banking. During this program, candidates are assigned with challenging business scenarios to enhance their critical and analytic skills. Another crucial element of the program ensures that managerial skills are honed and developed. This provides associates with the expertise required to handle supervisory and administrative tasks that will result in the development of successful business managers.
Cash officers:
MCBs Cash Officers Program catapults successful candidates to the front lines of the bank. Candidates in this program are the banks ambassadors and must have exemplary skills in dealing with clients. The program involves an extensive one-month training period based on branch banking operations before placement in the branches. Energetic and focused graduates from HEC recognized institutions with good communication and interpersonal skills qualify for MCBs Cash Officers Program. Before being placed at MCB branches, these individuals must exhibit a proven ability to add value and act as agents of change.
Internships:
MCBs Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. Through the program, internees can support their career goals by using the internship as a launching pad for creating contacts with professionals in the field and identifying their own competencies to build a successful career with MCB.
EMPLOYEE DEVELOPMENT:
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Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done. Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain in experience and knowledge.
In MCB, Regular in-house training programs offered by the TDC in-house are as follows:
Basic Course on General Banking Operations 4 days Officers working in general & consumer banking departments. Account Opening & Customer Relationship 2 days Officers in-charge of account opening. Clearing, Collections and Remittances 2 days Employees working in these areas. Advanced Course in General Banking Operations 3 days Operations' managers. Basic course in Processing of Credit Proposals 2 days Credit officers. Analysis & Interpretation of Financial Statements 2 days Credit officers. Credit Administration & Documentation 2 days Credit Adm. Officers. Elementary Course in Trade Finance 4 days Officers working in trade finance. Advanced Course in Trade Finance 3 days experienced trade finance officers. Time Management and Personal Effectiveness 1 day Officers in Range III and above who have not attended this course. Customer Service Skills Workshops 1-2 days All MCB employees. Telephone Handling Skills 2 days All MCB employees handling telephone calls. Selling Skills 2 days All MCB employees at branches. Performance Appraisal Workshop 1 day All MCB employees.
At the beginning of every quarter, TDC announces dates for training courses for the following quarter.
These courses are planned on the basis of training requirements received from area offices, branches or Head Office Divisions/Departments, either through employee appraisal forms or by specific demand from time to time. TDC may also design and offer additional training programs in other areas in response to specific training needs expressed by its internal customers.
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Some specialized courses, especially at an advanced level, may be outsourced by using reputable academic institutions and management consultants.
Training Process:
The 'Training Process' is an ongoing venture at the Bank; and in light of the importance of upgrading the skills of our employees, a team dedicated to excellence, is constantly striving to find new ways to deliver exclusive training and development solutions to MCB Staff. In order to compete in a high-speed pace business environment and meet the dynamics of evolving customer expectations, expertise coupled with dedication is the key to turning dreams into reality -- 'To be the obvious choice for financial services in the region and beyond'.
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ACCA (the Association of Chartered Certified Accountants), the worlds largest and fastest-growing professional international accountancy body, has recognised Muslim Commercial Bank for qualifying as an ACCA Platinum Level Approved Employer under trainee development scheme.
This status acknowledges the high standards of training and development which MCB provide to its employees As part of the programme, employers whose training schemes meet ACCAs rigorous criteria can become ACCA Approved Employers under the professional development stream, and are rewarded with a broad range of tools to help implement their staff development programmes. These include e-learning resources such as online courses, a continuing professional development (CPD) planning tool known as the professional development matrix and a knowledge library, an internet based research resource tool. Mr. Arif Masud Mirza Head of ACCA Pakistan, said: Increasingly, the provision of comprehensive training and development is seen as an important factor by employees when considering which employer to choose. ACCAs approved employer programme provides a benchmark of good practice to employers around the world and gives public recognition to these organizations for the quality of support and training they invest in their employees.
of an individual or a group. Setting and clearly communicating performance standards and expectations, observing and providing feedback, and conducting appraisals enable you to achieve the best results through managing employee performance.
To begin the process, you and the employee will collaborate on the development of performance standards. You will develop a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discuss goals and objectives throughout the year, providing a framework to ensure employees achieve results through coaching and mutual feedback. At the end of the rating period, you will appraise the employee's performance against existing standards, and establish new goals together for the next rating period. Elements of performance management are shown in Figure-7.
The Branch Managers and Unit Heads however, continue to bear the ultimate responsibility for successful completion of the exercise. They discuss the goal setting done by their departmental heads and place second signature on appraisal forms of all non-supervisory staff. Supervisory staff is evaluated by the Branch Manager and Unit
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Heads directly. In addition to personal skills, their supervisory skills are also evaluated, using the second page of the appraisal form for 'Managerial' staff.
Serve as an objective basis for communicating about performance. Enable the employee to differentiate between acceptable and unacceptable results. Increase job satisfaction because employees know when tasks are performed well.
Inform new employees of your expectations about job performance. Encourage an open and trusting relationship with employees.
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As the immediate supervisor, you play an important role; your closest interaction with the employee occurs at this level.
Performance Standards Observation and Feedback (Coaching) Absolute Category Rating (ACR) Performance Appraisal
Guiding Principles:
Effective coaching can:
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Strengthen communication between branch manager and the employee. Help the employee attain performance objective. Increase employee motivation and commitment. Maintain and increase the employee's self-esteem. Provide support.
5 4 3 2 1
9 8 7 6 5 4 3 2 1
Excellent
Good
Fair
Poor
Bad
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Grading value
10 9 8 7 6 5 4 3 2 1 0
Estimated Quality
Best Excellent
Good Fair
Poor
Bad worst
Table 8.3: Eleven-point quality scale. 10 score for the sequence(s) that is identical to the reference one. Similarly, 0 score is for the sequence that has no similarity with the reference.
5 4 3 2 1
Imperceptible Perceptible, but not annoying Slightly annoying Annoying Very annoying
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Performance Appraisal:
MCB Pakistans performance appraisal system is based on a combination of 'MBO' and 'Enabling Traits' approaches, under which: 60% weight age is given to performance goals discussed and laid out in the beginning of the year. Another 40% weight age is assigned to enabling personality factors, which are clarified to all employees by their supervising officers at the start of each year.
The system and process flow of the appraisal process is modified, improved and upgraded from time to time in line with the Bank's requirements, as well as with industry practices. HR Department notifies all units of the Bank of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, form filling, monitoring and final appraisals.
Salary increases and adjustments are based on performance of employees during a calendar year and are finalized during the first quarter of the New Year. Grade promotions on the other hand are based on the -availability of higher positions, employees' ability to fill those positions and sustained high performance during the last few years, and are finalized during the second quarter of each year.
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5. Review of salary, assignment and career path. 6. Award of bonuses. 7. Promotion to higher salary ranges and functional responsibilities.
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Performance appraisal in MCB involves making Absolute Category Rating (ACR)s of the subordinates. That is, a branch manager writes the ACRs of employees in his branch, a Regional Manager writes the ACRs for the various Branch Managers working under him and so on. An ACR contains such information as the employee background, nature of his work, performance of employee, performance rating and recommendations. These ACRs are sent to the GM Office from where they are forwarded to the Human Resource Division.
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Encourage Performance
Provide timely awards that are valued by employees.
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Legal compliance with all appropriate laws and regulations Cost effectiveness for the organization Internal, external, and individual equity for employees Performance enhancement for the organization All reward systems are based on the assumptions of attracting, retaining and
motivating people. Financial rewards are an important component of the reward system. These incentives can be monetary or non-monetary. It is shown in Figure-8.
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REWARD SYSTEM
FINANCIAL
NON-FINANCIAL
Protection Programs
Recognition
Training opportunities
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Financial Benefits:
o Life Insurance o Disability Insurance o Medical Allowances o Pension Plans o Severance Pay o Conveyance Allowance o Bonuses o Profit Sharing
Non-Financial Benefits:
o Sound Working Environment o Training And Development o Job Security o Pick And Drop Facility o Sick Leave/ Vacations o Flexible Work Arrangement o Flex Hours
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MCB awards their employees a lucrative compensation in return of their tough mental labor. Apart from basic salaries they are offered many other benefits like: o Utility Allowance, o Medical Allowance o Overtime Allowance o Education Allowance o House Rent Allowance o Bonuses
Cash Prizes:
There are also some cash prizes for employees who show better performance. Those employees, who pass IBP part 1 exam in first attempt, are offered Rs.60, 000 cash prize or two increments. Similarly those who pass part 2 exams are offered Rs.100, 000 or three increments. Those who pass both examinations within one year of training are promoted to OG 2, and those who get the gold medal in the exam, are promoted to OPERATING GRANT 1.
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Conveyance Loan:
MCB is giving medical facility for their employees. For that every good hospitals one in its panel officers are offered this facility for them, their spouse and children. For None of them officers, parents are also included for medical facility.
Education Allowance:
MCB is also giving education allowance for the children of employees. Education allowance is for none of them officers only. Officers already have reasonable salaries, which covers all of their needs.
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Career is the sequence of the progress and actions taken by a person throughout a lifetime, especially related to that person's occupations. A career is often composed of the jobs held, titles earned and work accomplished over a long period of time, rather than just referring to one position. "A goal that you desire to achieve in a selected field or occupation with a well-thought out plan, to get you there is called Career Planning." In employment context, career planning is continuous process of evaluating your current lifestyle, likes/dislikes, passions, skills, personality, dream job, and current job and career path and making corrections and improvements to better prepare for future steps in your career, as needed, or to make a career change. Career planning is important because the consequences of career success or failure are linked closely to each individuals self concept, identity and satisfaction with career and life. In the new concept of career management, company and the employee are partners in career management. According to a view, A job is just an opportunity to learn new skills that you can then peddle elsewhere in the market place . The fact is that responsibility of career development belongs ultimately to each individual. The organization should be a proactive force in this process. To do so, organizations must think and plan in terms of shorter employment relationship. A second strategy for organizations is to invest adequate time and energy in job design and equipment.
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Individuals will have identified and learned the skills necessary to make you more attractive to a wider range of employers.
Make logical job transitions: They will know what skills and responsibilities to look for in the next job.
Have increasing responsibility: Individuals will have identified and gained the skills and training you need to take on more responsibility.
Have a broader prospective: They will be able to understand where a specific job or responsibility fits into your overall career path plans.
Make decisions easier: You can look at a situation within a larger context and better evaluate your options.
Earn more: Individuals are less likely to be underpaid since your career research will tell you what you should be earning.
Be more satisfied: They will be moving in a career direction that is designed to meet your lifestyle, interest and financial goals. Figure -9 shows the development of a career system composed of individual career paths.
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Step 1
Step 2
Step 3
Step 4
Integrate the overall networks of Career Path into a single career path.
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Job changes must be made in agreement with the public service rules and policies in the classified service. Any individual selected or promoted must be skilled as fit in accordance with and focus to the civil service official procedure. The state personnel director will manage the documentation of each and every promotion & appointment.
From the organizations point of view, there are four types of internal moves: Up Down Over Out (Promotions) (Demotions) (Transfers) (Layoffs, Retirements, Resignations and Terminations)
Promotion:
Promoted employees usually assume greater responsibility and authority in return for higher pays, benefits and privileges. Promotions help satisfying employees needs for security, belongings and personal growth in terms of their career. In MCB, promotion is the discretion of the management and cannot be claimed as a matter of right. The promotion is recommended by the respective selection committee. The committee makes recommendation for promotions on the basis of the employees performance, achievements of goals, general conduct, communication skills, peers relationship, teamwork, academic and professional qualification.
In the merit base police of 1999, in general, appraisal of an employee was foundation of following:
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a) Points average gained by the employee in his service during preceding 3 years. b) Points, he would get in an assessment by the promotion or encouragement committee.
The given points by the promotion committee, nevertheless, again abridged the work out to a automatic process as: 60% points were fixed for qualification, service time span and standard of service. 40% were given to aim criteria. More improvements in the plan are being considered. As per rule, an employee reaching the ceiling of the grade is not entitled automatically to promotion in the next higher grade. Employees are eligible to apply & compare for a post in a higher grade.
Demotion:
Employee demotion usually involves a cut in pay, status, privileges and opportunities for higher grades. This practice is rarely found in MCB, because management prefers to discharge or to move employees laterally rather than demote them. For the reason being, demotion (Downgrading) creates a sense of dissatisfaction in the employees and lessen their productivity.
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The demotion is asked for by the employee and is accepted by the hiring authority.
The employee position has been brought to an end. Employee is not performing adequately. The employee is put out of place by coming back to duty of another employee entitled to the position.
The position of employee is downwardly classified. The employee is demoted by another employee with more superiority during a decrease in manpower.
Transfers:
Transfer refers to the relocation of employees. Management usually use this practice just to take advantage of an employees competencies to any sector of the organization where needed. This practice remained common in MCB but the eligibility criteria for transfer is at least 2 years service in similar position (Same Grade).
In MCB, transfers on request take place only on sympathetic and medical grounds even as another cause is set off by the bank for meeting its administrative or organizational necessities that is to fill the available vacancies.
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Workers can remain posted in one unit up to 3 years and in a division for up to 6 years, yet some offices used to frequently transfer their employees from one unit/division to another.
Separations:
Employee Separation is one of the very important and crucial function / process of HR Department. This process, if not handled in an efficient manner, can lead to various legal complications. These involve employees moving out of the organization. There are four types of separations: Layoffs, Termination, Resignation and Retirements.
Layoffs:
Layoffs are involuntary discharge of the employees from the organization. Layoffs never sound pleasant and management policies must consider the impact on those who leave, who stay, on the local community and on the organization. As far as MCB is concerned, layoffs take place when there is excess of human resource. Layoffs is the short term suspension or lasting termination of service of an employee or employees group for certain reasons, for instance, decisions that some positions are no more essential or a business is slow or disruption in job. System of MCB of Pakistan is computerized consequently need of staff no more in some departments. This can be a bigger cause of layoffs.
Termination:
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Usually, this process is perceived negatively by employees. In termination, an employer uses his right to terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are: The end of the agreement for which the employee was in employment. Employee sickness and incapability to do work. Removal from offices. Non- performance. Indiscipline Misconduct Insubordination
Resignation:
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This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities; a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country.
Better compensation and benefits Higher position / level Challenging role To move from an unknown or lowly branded company to a highly branded and reputed company
In MCB, there is some legality or may say some rules and regulations that must be followed before resigning, such as: The member of the staff must inform to his line manager in written form about his/ her intentions of leaving or resigning by giving the suitable contractual notice time. The line manager should arrange the notice and the date of leaving job and verifies annual leaves that are outstanding with the staff member. Any outstanding annual leave remaining should be taken prior to say good bye to the organization whenever possible. Line manager takes and forwards resignation in written to Human Resource Management along with verification of:
Make sure that the staff member returns data on very last day.
Retirements:
Employees at all levels in MCB get retirement after either the completion of 30 years in service or reaching an age of 60 years. The bank operates the following staff retirement benefit schemes for its employees:
a) For employees who did not opt for the new scheme, the bank operates the following: i. ii. Approved contributory provident fund; An approved gratuity scheme
b) For new employees and for those who opted for the new scheme introduced in 1975 for clerical staff and in 1977 for officers, the bank operates the following: i. An approved funded pension scheme for which monthly contributions are made on the basis of actuarial recommendations. ii. An approved non-contributory provident fund introduced in lieu of the contributory provident fund. c) For AVPs and above cadre and employees in officers cadre joining after January 1, 2000, the bank operates an approved contributory provident fund. The above benefits are payable to staff on completion of prescribed qualifying period of service.
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1. Focus on mutual trust in MCB 2. Control on human diversity in the work place 3. Healthy care of employees in MCB 4. Resolving dispute matters in MCB 5. Fair wages and incentive system in MCB 6. Quality, productivity and employment security in MCB
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Labor-management relations are based on mutual trust between labor and management. Harmonious working relationship between labor and management are critical to an organization. Traditionally both parties have assumed a win-lose adversarial posture towards each other.
Labor management relations emphasize general themes: to achieve long-term success, labor and management must learn to accommodate one anothers needs, rather than repudiate them. Then by the concept of mutual trust between labor and management, certain goals can be achieved:
Improvements in the lives of employees are realized through the prosperity of the company, and labor and management thus share the same goal of company prosperity as a common value which increases the productivity.
Management will take into consideration to the greatest possible extent stable employment and will continuously strive to improve working conditions; and employees will cooperate with the company's policies in order to promote the company's prosperity. In figure 10, labor management relations are shown.
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In order to create a relationship of mutual trust and respect between labor and management, personnel management is conducted in accordance with four basic principles: Creating a workplace environment where employees can work with their trust in the company: Stable employment conditions where layoffs and dismissals are not readily made. Readily maintain and improve working conditions from a medium to longterm perspective. Ensure fairness and consistency.
Creating a mechanism for promoting constant and voluntary initiatives in continuous improvements: Share the management mindset and sense of urgency through communication. Reflect business results in working.
Fully committed and thorough human resources development: Promote personal growth through work. Communication of the job way/role.
Promoting teamwork aimed at pursuit of individual roles and optimization of the entire team: Through consensus building and achievement in a single thrust. Team work and create a sense of unity.
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Establishment of a relationship of mutual consent & Mutual trust between labor and management
Stable employment, maintenance and improvement Of good working conditions and fair wages
Common Values
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Significance:
An employee with a high level of job security will often perform and concentrate better than an employee who is in constant fear of losing a job. Although this fear can increase motivation in certain situations, a lack of job security can be a source of distraction and result in excess stress and low morale that hinders an employee's overall performance.
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SWOT ANALYSIS:
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STRENGTHS:
MCB is Successive and Market oriented. MCB investing huge sums on HR development and training. Customer default rate is lower as compared to other banks. MCB has the largest ATM network in the country. Meeting the challenges of latest Technology by introducing Smart card remit express, mobile banking etc. One of the major strengths of MCB is that it has very stable deposit base. MCB is largest private bank in Pakistan with around 1000 branches, which cover almost every part of Pakistan. The bank enjoys competitive advantage over other banks in Pakistan. The bank enjoys competitive profitability in the industry. MCB has captured majority of potential customers in Pakistan. MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.
WEAKNESSES:
Low motivational level Employees, dissatisfaction due to ill treatment and improper reward system. Favoritism and Nepotism in recruitment. High Employees Turnover. Decision making process is very slow. It is not having greater no. of branches abroad. Though ATM network is the largest in Pakistan, still some potential areas dont have the ATM. MCB RTC is useable only in Pakistan.
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Some management positrons needed are not professional. Although most of the branches are computerized now, still some important branches dont have computers. Less efficiency of SYMBOL System due to disconnectivity.
OPPORTUNITIES:
Leasing sector is growing in Pakistan for the last two to three years which provides opportunity to MCB to go ahead in this area as well. MCB is providing Consumer Finances at comparatively lower rates which paves a way to grab more customers Financing to small/medium cottage industries will definitely increase its advances and profitability as well. Islamic Trading Based Banking can enhance the business of the bank. Overseas Operations. Launch the more effective and modern banking online system.
THREATS:
Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL, Al falah, HBL etc. For the last of many years, Pakistan is facing economic and political instability which is a big threat. Afghan war and Iraq war has a deep effect on the economy of Pakistan, which may affect MCB. Foreign banks are flourishing in field of consumer financing. People dont prefer banking culture. They mostly prefer cash transactions.
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Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. These influences include:
Political and legal environment Economic trends Socio cultural environment Technological factors
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Economic Trends:
A banking market requires better consumer market in volume along with higher borrowing power. The available borrowing power depends on: Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates Cost of living Inflation
Socio-Cultural Environment: A society is shaped by beliefs, norms and values. People in a society consciously and unconsciously interact with: Themselves Others Organization Society
Technological Factors:
Forces of technological advancement have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. New technology is creating deep rooted affects which could be observed in long run. The improvement techniques involved in on line banking. In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition.
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Training Of Employees:
MCB has the program through which all the employees of the bank get proper training and then work for the achieving the goals.
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Revenue Recognition:
MCB recognized its revenue on accrual basis. For example if MCB invest in some different securities and entitled for the profit yet not received, the profit is recorded as when it earned not when it received.
Investments Policy:
MCB also invest its money other than the advances, while investing in the securities MCB has the following policy to invest in a) Held for trading b) Held to maturity
In the light SBP regulations quoted securities are shown at market values and any changes arising are taken to profit and loss account only upon actual realization.
RISK MANAGEMENT:
The bank is primarily subject to interest rate, credit and currency risks. The bank has designated and implemented a frame work of controls to identify, monitor and manage these risks are as follows:
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Technology continued to play an important role in improving and expanding product offerings. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers.
MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country.
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MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse.
The Islamic Banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships, which were confined only to current account facility, have grown into stronger business relationships. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad.
The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs.
Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to non-resident Pakistanis.
Furthermore, feasibility is also being carried out for entering other international markets. MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls.
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The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.
Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly. In view of the competitive environment, the Bank is focusing on performance and introducing a more robust performance management system.
MCB is also strongly committed to training its staff at all levels. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB Bank will run SYMBOLS E-Finance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. By implementing SYMBOLS, MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking retaining its market leadership as Pakistan's progressive Bank.
SUMMARY:
In this section, the policies of MCB are discussed. MCB has the policy to serve the students that is six weeks internship. MCB focus on merit rather than gender. To be competitive the Bank has further reinforced its position in the Consumer banking area by streamlining and re-launching the consumer financing products and introducing more convenience based solutions.
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10- CONCLUSIONS
1. Analysis Evaluation Of MCB 2. Check Feedback Of MCB 3. Proper Observation Of MCB 4. Findings Of MCB
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10- CONCLUSIONS
In MCB, Model Town Branch, with Cooperation of all branch members, I have been able to learn and experience many new things related to the banking sector and the banks workings. I am able to handle the public with respect to many different workings on many different instances and also in account opening for customers and can handle many other tasks as well.
Finally I concluded that MCB is a good organization for a person for his long term career workings. Overall working and environment of the bank is very comfortable and the staff is very helpful and respectful of each other and it still maintains a professional environment. Management of the bank is very strong. I found MCB a very well organized and managed organization. Its progress in a very short time is a proof of its good policies and commitments by both, the management and the employees towards achieving the goals and act upon the mission of MCB.
Employees of MCB Model Town branch work more than their working hours and all the workings take place in a very friendly atmosphere that does not induce pressure on the person working there. Unlike most of the other organizations, MCB do not try to squeeze their people into a corporate mould, instead they identify individuals talent and then give them plenty of room to grow. It also shows their loyalty and commitment to the organization. This branch of MCB relatively small and has climbed its way up very quickly and all that only because of the employees efforts and consideration for each other
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Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed.
Along with all these positive points, like all other organizations MCB also needs to improve in some aspects. MCB seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at MCB, was quite low. There are quiet tight and hard policies in case of promotion. It takes too much time for promotions even if the promotion is due; it still requires a recommendation from management. Pay structure is also very poor. Employees are low-paid. And all these factors create dissatisfaction and demotivate employees.
Now a days, despite all these little problems, as a whole MCB is a unique blend: diverse, challenging and moving at a growing pace, yet also personal and friendly. They value their best performers highly and offer three things that must be top of the list when you consider your next, all important career move:
Stimulating work that will enhance any resume Development opportunities to enrich your professional growth Rewards that match with performance.
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Tasks in HR Department:
I match the entries in master file with the given voucher. I entered the expenses in their relevant accounts. I arranged the vouchers by date. I prepared debit and credit vouchers. I prepared office notes. I stamped different bills on the instructions of HR Manager. I was told about how salary is estimated every month.
I was told about the whole procedure of staff loan issued to staff members.
Workload:
The work load of the bank staff is based upon on the daily system. The office timing starts from 9.00 am to 5.00 pm (Monday to Friday) and 9.00 am to 1.00 pm on Saturday for the customers. After the bank timing the staff fulfill the daily vouchers transaction and made the entries on the net system and then counted the cash, put it in the safe. The banking staff should finished their word on daily basis whether there work is short or long.
Responsibilities:
Responsibilities of staff depend upon the scale of the staff members. Higher the rank of the staff higher will be the responsibility on it. For example the Branch Manager responsibility is higher than the Operational Manager.
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Branch Manager has the responsibility to deal with the Branch customer and with the outsider parties also while all the remaining staff is responsible to deal with the Branch customers only. Branch Manager is responsible for the internal and external environment and the remaining staff is responsible for internal environment only. Operational Manager has the responsibility to check the activities of his subordinates. Cashier is responsible for all the cash transactions which occur in the Bank. Customer Relation officer is responsible to deal the customers well and provide them the necessary information if required.
Physical Facilities:
The branch where I have done my internship is MCB branch, here the physical facilities available to the customers are sufficient, proper sitting arrangement is available, and gas heater in winter and air conditioners for summer is also available. But the facilities for the employees is not sufficient, employees have the combined table there is no separate rooms for the employees.
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Performances:
In Term Of Customers Satisfaction:
The customers are very satisfied with the performance of the bank. The bank is provided latest banking services to the customers so that they can easily access to their accounts. The bank is also providing the internet facility to their customers through this they can access to their accounts on the net and they can check their balance without going to Bank. The Bank also provides the door to door services to those customers who transactions are daily occurs that why those customers are very satisfied with the Bank and this thing also helps to the Banks for increasing their accounts holders.
Summary:
It basically includes organizational attitude towards its employees and employees satisfaction and attachment. MCB performs several functions and have many departments in order to retain and maintain their customers some of these departments are the collections department, Advance department, Bill department, clearing department etc. To motivate the employees MCB provide many allowances and facilities to its employees such as medical facility, huge amount of bonuses and also motivate the employees through promotions. The branch in which I have done my internship is providing the very satisfactory services to its customers and large numbers of customers are satisfied with the attitude and the services provided the branch.
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From the quantum of the profit and its financial data it can easily judged the after privatization Muslim Commercial Bank is performing well. Its deposits are growing day-by-day and so its profitability. The controlling body is responsible for the productive performance of the bank. Followings are my observations and suggestion to improve the efficiency for the development of the bank.
Increase In Profits:
People can be motivated to save money by offering the deposit through various investment schemes. The rate of profit should increase 1% or 2 % it would be profitable step for bank.
Increase Salaries:
MCB is making good profits but giving less pay to their employees as compared to their competitors. So their salaries should be increased. Because less salaries make the employees demotivate and they lose their interest in their jobs.
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Training:
Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Some more reading material should be provided the purpose should be to educate the employees with the advance studies in their field. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking.
Refresher Courses:
Refresher courses for the staff are most important in any international organization. All the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose.
Incentive To Employees:
Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. Such system should be designed that every employee who has some problems with his officers can communicate to the higher management and some steps must be taken to improve that.
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Over Employed:
During my internship period I felt that at some place the Muslim Commercial Bank Limited is over employed which is causing in expenditure. I think that the best way out for this problem is to pen new branches.
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Internship Facilities;
The period of internship should be divided into the number of department of the MCB. The internee should be given timetable mentioning the number of days he has to work at different places in the bank. On the 1st 4 day in each department internee should be given a lecture by the officer of the department concerned about working of the department.
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A lot of productive time is wasted by the staff in unproductive pursuits and tea and lunch breaks are got voluntarily extended and the time spent in corridors, courtyards, depends on the staff will. This tendency of late must be eliminated which reflect adversely on the image of the institution and has posed a serious problem.
Distribution of work is not on equity basis, work has not been allocated properly some workers have to work hard and have to work in late hours without any extra reward. So I suggest that steps should be taken to allocate the work properly.
It should not be like that a person who may be a very good worker but possessing lack of managerial capabilities should be posted as manager. But as second place in command or some heavy working department wished persons together with managerial qualities and manners in the same fashion should be posted and placed as manager.
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13- REFERENCES
Introduction: http://mcb.com.pk/mcb/about_mcb.asp
http://www.oppapers.com/essays/Pakistans-Banking-Sector-Industry Analysis/181995
http://en.wikipedia.org/wiki/Economy_of_Pakistan
http://www.sbp.org.pk/reports/annual/arfy09/annex_index.htm
http://en.wikipedia.org/wiki/Muslim_Commercial_Bank
http://www.blurtit.com/q501915.html
Annual Report
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14- ABBREVATIONS
MCB Muslim Commercial Bank
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15- APPENDICIES
Sample of Recruitment through Direct Interview Online Job Application Form of MCB Sample of performance appraisal form Branch Network of MCB Summary of PEST Analysis Of MCB
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Annexure-A
Findings through our Direct Interview from HR managers: The potential candidates in MCB are generated through following external resources: o Direct applicants o Job portals o Employee Referral o University campuses
S. No.
Source
Candidates with experience of 10 yrs & 0-1 yr 1-3 yrs 3-5 yrs 5-10 yrs above
1 2 3 4 6 7
Campus Employee Referrals Consultants Walk-ins Advertisements Job Fairs Depends on nature of job Depends on nature of job Depends on nature of job Depends on nature of job
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The time HR Managers take from JRF ( Job Requisition Form) till the final offer is: o For Junior level recruitment: 15-20 days
The sources HR managers prefer most for hiring: o Junior Level employees: External Sources
When a middle level employee is transferred from one department to another, he/she has to go through a probation period of 6 months. During this period, the employee is trained in that department by the supervisor and the employee is also properly scrutinized this whether employee is capable of working in that department or not.
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Annexure-B
Candidates can also apply at MCB via online job application form
The online job application form is given below: Application submitted for * Here you have to specify whether you are applying for any suitable job or for internship program. Personal Information
Please Select
Fields marked with an*are mandatory Title: * First Name: * Middle Name: Last Name: * Gender: * Country of Residence: * Address: * City: * Contact No * country code Cell No: National Identity Card No. Passport No. * * area code phone no.
Please Select
P lease Select
(Without space)
Email Address:
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--
--
--
P lease Select
Education
Degree / Diploma / Certificate: * School / Institute / University: * City / State: * Country: * From:(Month / Year) * To: (Month / Year) * GPA: Grade: Major:
Please Select
P lease Select
-----
(If Applicable)
--
--
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Assignment/Responsibilities *
Area of Experience
Please Select
* Banking Category:
Please Select
* Fresh Category:
Please Select
Organization * Country * City From (Month / Year) * Till (Month / Year) * Responsibilities/Nature of work
-----
P lease Select
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Area of Interest
3rd Choice Position Applied for Job Location Expected Salary (PKR) Mobility Local Mobility International Yes Yes No No
Skills
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Key Strengths
Other
Please note that mere submission of instant application or any subsequent correspondence from MCB should not be considered as guarantee for employment or even for an interview call in this regard.
Preview
After the proper filling out of this job application form, HR managers check whether the candidate fulfills the minimum selection requirements or not and then contacts the person for further proceedings.
Annexure- C
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Employee Name
Position Title
Hire Date
Date of Evaluation
Department
Evaluator
Annual
Promotion
Other
I.
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II.
III.
Rating scale
Excellent (81%- 100%) Good Fair (61% - 80%) (50% - 60%)
Unique and exceptional accomplishments Consistently meets the requirements of the position in all aspects Performance is inconsistent; meets some job requirements but not consistently. Only occasionally acceptable Does not meet even minimum requirements of the position
Poor Bad
Part II
( If any point is not applicable, please do not mark but simply write N/A )
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Job Knowledge:
Consider degree of job knowledge relative to length of time in the current position. Consider the individuals efforts to learn new skills and maintain up-to-date job related information. Applies technical and procedural know-how to get the job done; understands job duties and responsibilities; has necessary job skills and knowledge; understands and promotes department mission and values; keeps informed of the latest developments in the area of specialty; monitors events which impact functional areas.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Communication:
Effectively conveys and receives ideas, information and directions; seeks to clarify and confirm the accuracy of their understanding of unfamiliar or vague terms and instructions; listens effectively; demonstrates good verbal and written communication.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Teamwork/Collaboration:
Successfully works with others to achieve desired results; contributes to team projects; exchanges ideas, opinions; helps prevent, resolve conflicts; develops positive working relationships; is flexible, open-minded; promotes mutual respect.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Productivity:
Maintains fair work load; takes on additional responsibilities as needed; manages priorities; develops and follows work procedures; completes assignments on time and to specifications.
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Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Problem Solving:
Anticipates and prevents problems; defines problems, identifies solutions; overcomes obstacles; helps team solve problems.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Initiative:
Pursues goals with commitment and takes initiative eagerly; results-oriented; desires to excel on the job; works steadily and actively; demonstrates self-confidence and positive attitude.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Customer Orientation:
Listens, identifies, and responds quickly and effectively to internal and external customers needs and sets work activities accordingly; goes beyond what is expected and follows up to ensure customer satisfaction.
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Excellent
Good
Fair
Poor
Bad
Demonstrates accuracy, thoroughness, and reliability; manages time and priorities; develops and follows work procedures.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Diversity:
Treats everyone equitably and fairly; embraces diversity in daily work life; works with diverse group of employees comfortably and willingly. Rating: Excellent Good Fair Poor Bad
Comments:
Attendance:
Consistently is on time and ready to work at the start of shift and after breaks; requires no startup time; always provides proper notification or advance notice for absence or tardiness.
Rating: Comments:
Excellent
Good
Fair
Poor
Bad
Contributions to Campus/Community:
Participation on campus committees, task forces or in campus service events; participation in community based service activities
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Rating: Comments:
Excellent
Good
Fair
Poor
Bad
II.
Development Plans: Identify specific work assignments and topics for training
designed to increase individuals effectiveness on present job and prepare for future job assignments.
III.
Employee Comments: Enter below any comments you wish to make about your
appraisal or the objectives for the upcoming year.
Your signature below does not necessarily signify your agreement with the appraisal; it simply means that the appraisal has been discussed with you.
Signature
Date
Evaluator Signature
Date
Annexure-D
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Annexure-E
150
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