MCB BANK LTD.

1.1 HISTORY AND BACKGROUND

1.1.2 INTRODUCTION
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.

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.

It encourages diversity and treats each of its employees with fairness. It gives
constructive feedback for their continuous development and seeks suggestion from all
employees for further improvement. It ensures that quality performance is acknowledged
and rewarded and exercise utmost responsibility in decision making with regards to its
employees. Integrity of its employees is the strength of its performance.

MCB believe in achieving their mission and vision by working together as a combine
group. It treats its colleague as its internal customer and ensures that the requirements of
internal customer focus are always met. Equipped with in-depth product knowledge and
recognizing the strengths in each individual, It strive for optimum-results from its coworkers and bringing out peak performances by working towards common goals and
objectives in today's dynamic banking environment.
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MCB BANK LTD.

MCB has an edge over other local banks, as it was the first privatized bank. The State
Bank of Pakistan has restricted the number of branches that can be opened by foreign
banks, an advantage that MCB capitalizes because of its extensive branch network.

Ten years after privatization, MCB is now in a consolidation stage designed to lock in the
gains made in recent years and prepare the groundwork for future growth. The bank has
restructured its asset portfolio and rationalized the cost structure in order to remain a
low cost producer.

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 multi national concerns. MCB is also catering to the growing middle
class by providing new asset and liability products. The Bank provides 24 hour banking
convenience with the largest ATM network in Pakistan covering 30 cities with over 225
ATM locations. The Banks Rupee Traveler Cheques have been leaders for the past six
years and have recently launched their Gift Cheques Scheme.

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MCB BANK LTD.

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation
of over 50 years in Pakistan, with a network of over 900 branches, over 750 of which are
Automated Branches, over 225 MCB ATMs in 41 cities nationwide and a network of over
12 banks on the MNET ATM Switch.

MCB has become the only bank to receive the Euromoney award for the fourth time in
the last five years. MCB won the "Best Bank in Pakistan" in 2005, 2004, 2003, 2001, and
in 2000 the "Best Domestic Bank in Pakistan" awards. In addition, MCB also has the
distinction of winning the Asia Money 2005 & 2004 awards for being "The Best
Domestic Commercial Bank in Pakistan".

MCB offers a wide range of financial products and advice for Personal and Corporate
Customers. You can also apply on-line for many of our Online Services. Customers can
access their accounts using our simple and convenient MCB Virtual Internet Banking
services.

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MCB BANK LTD.

NORMAL OPERATIONS OF THE BANK

TIMINGS
MCB Bank follows the rules stated by The State Bank of Pakistan.
Bank Timings
Public Dealing

9 am to 5 pm
9 am to 5 pm

Friday

9am to 1pm 3pm to 5pm

Saturday

9 am to 5pm

WORKING DAYS
Bank working days are six, from Monday to Saturday.

WORKING METHODS
MCB Bank follows computerized system they do follow manual system but to a very small
extent. They use a banking software program SYMBOLS to run the bank's business
operations.

The Bank is implementing the full suite of the latest version of SYMBOLS Version 8.
Muslim Commercial Bank runs SYMBOLS e-Finance modules to deliver personalized
services to its customers over multiple delivery channels, while SYMBOLS Enterprise
Operations Center serves as its core banking transaction processing engine.

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MCB BANK LTD.

COMPETITORS

National Bank of Pakistan

Bank Al falah
United Bank
Allied Bank of Pakistan
Citibank
Habib Bank Ltd.
Faysal Bank
Prime Commercial Bank
ABN Amro Bank
Saudi Pak Commercial Bank
Indus Bank
Soneri Bank
The Bank of Khyber
Bank of Punjab
Gulf Commercial Bank
Metropolitan Bank
Standard Chartered
Askari Bank

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MCB BANK LTD.

1.1.7 OBJECTIVES OF ORANIZATION

The following are the objectives of Muslim Commercial Bank Limited.

CREATING AND MANAGING VALUES

The first objective of Muslim Commercial Bank Limited is to create and mange the
values, which is one of the back bone of the objectives of any well organized and
managed organization.

HUMAN VALUES
The second objective of Muslim Commercial Bank is to take care of the Human capital
which is a necessary thing for the development and prosperity of any well established
organization.

BEST PLACE TO WORK

The third objective of Muslim Commercial Bank Limited is to make it a place which is
much feasible and comfortable for employees of the bank. The MCB is always conscious
in developing such place where employees of the bank feel easiness.

TECHNOLOGY
The forth objective of Muslim Commercial Bank Limited is to bring new and latest
technology in the operations of the bank. At MCB, technology has a direct relation with
your needs; it is a means for creating value and convenience for the customer. Over the

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last few years MCB has invested heavily into strengthening its technology backbone.
Today it is leading the way in banking technology and setting new standards for the
banking industry; penetrating into the local market, listening to the needs of the people
and educating them of simple financial products and services that create both value and
convenience. MCBs strength lies in providing a technological base at the grass roots
level of the society with a challenge to educate and assimilate such systems across vast
cultural and economic backgrounds. With over 768 automated branches, 243 online
branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks
on the MNET ATM switch, MCB continuously innovate new products and services that
harness technology for the customers benefit.

UNDERSTANDING RELATIONSHIPS
The fifth and very important objective of Muslim Commercial Bank Limited is to create
such an environment which is suitable for creating understanding and relationship
between the employees, thus going towards the way of development and prosperity. Over
the years, MCB has fostered strong bonds with its customers. Understands them; their
needs. They feel comfortable with MCB; its their bank; it responds to them; listens to
them; partners with them; grows with them. At MCB, banking is all about being there for
people, making a home in their hearts-continuously building relationships on mutual
trust and confidence. We understand that relationships are about expectations-our
products and services are based on your customers, expectations. Be it financing for
personal or business related needs, funds transfer and trade related facilities or need for
different types of deposit accounts, MCB offers you a variety of products and services
customized to satisfy your individual needs.

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MCB BANK LTD.

UNDERSTANDING CONVENIENCE
The next objective of Muslim Commercial Bank Limited is to make understanding a
convenient thing for the whole environment of the bank, for the purpose of boosting up its
values and prosperity in such a competitive environment. Convenience is what the
customer is looking for; and this is what we at MCB are
continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM
network or the easy availability of financing requirements or simple opening of account,
MCB has tailored its products and services to make your life easier. MCB knows the
particular needs of its diverse customer base d continuously develop products and
services that fulfill these needs.

UNDERSTANDING RELIABILITY
The last but not least objective of Muslim Commercial Bank Limited is to make an
environment which have an understanding of reliability in the whole structure of the
bank. With a strong financial base, a promising team and the right resources, MCB has
proved to be a reliable partner indeed. MCB understands the special needs of the
business, trading and agricultural sectors. Strategically located branches in small towns
and cities provide warm services and advice to the small businessmen and local traders.
MCB speaks their language; it understands their needs and provides tangible results. By
responding in a timely manner with a flexible approach, MCB provides its clients with
the reliable financial service and support they require to successfully achieve their
business objectives. With a solid foundation of over 50 years in Pakistan and having
recently completed 10 successful years of privatization, MCB is strongly positioned to
lead the banking sector in the new millennium. You can feel safe in our hands.

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MCB BANK LTD.

ORGANIZATIONAL STRUCTURE OF MCB BANK LTD

As MCB is a banking company listed in stock exchange therefore it follows all the
legalities which are imposed by concerned statutes Mr. Muhammad 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.

Operational Management of the bank is being handled by a team of 10 professionals.

This team is also headed by Mr. Muhammad Mansha. The different operational
departments are Consumer Banking & IT div; Financial & Inter branch div; Banking
operations div; HR & Legal div; financial control & Audit div; Credit management div;
Commercial Banking div; Corporate Banking div; Treasury management & FX Group
and lastly Special Assets Management (SAM) Group.

For effective handling of branches, it has been categorized into three segments with
different people handling each category. These categories are:

Corporate Banking
Commercial Banking
Consumer Banking

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MCB BANK LTD.

CORPORATE BANKING
These are branches, which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.

COMMERCIAL BANKING
The branches which has a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this category.

CONSUMER BANKING
These are the branches that have exposure up to Rs. 20 million and these include all the
branches that are neither corporate nor commercial branches.
Recently the organizational structure was re-designed as follows:

PROVINCES WISE BRANCHES

Corporate

Consumer

Commercial

20 branches

637 branches

383 branches

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MCB BANK LTD.

NUMBER OF BRANCHES IN DIFFERENT LOCALITIS

Punjab

601

Sindh

217

NWFP

112

Baluchistan

35

Azad Kashmir

16

Domestic

981

Overseas

EPZ

Total

986

Among the four overseas branches three are located in Sri Lanka and one in Bahrain.
Furthermore, the bank has some proposals under consideration to open more brunches
in some European countries and as well as in Japan & china.

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MCB BANK LTD.

2.1.2 ORGANIZATIONAL STRUCTURE

President
Group heads
Divisions and field
Circle offices
Regional offices
Branch offices

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MCB BANK LTD.

LINE OF BUSINESS (LOB) ORGANIZATION

President and CEO

Group Head
Corporate

Group Head
Commercial
North

Group Head
Commercial
South

South Karachi

Lahore East

Karachi East

North Karachi

Lahore West

Karachi west

Faisalabad

Karachi

Gujranwala

Quetta

Abbotabad

Bahawalpur

Sargodha

Multan

Peshawar

Hyderabad

Central

Sukkur

General Manager/
Circle Offices

General Manager/
Circle Offices

General Manager/
Circle Offices

Regional Managers/
Regional Offices

Regional Managers/
Regional Offices

Regional Managers/
Regional Offices

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MCB BANK LTD.

2.1.3 MANAGEMENT HIERARCHY

Branch Eden Centre

Chief Manager

Operational Manager

Credit Department

Operation
Officer

Supervisor

Cash Dept.
(Chief cash)

Clearing

Teller

Teller

Deposits/withdrawals

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MCB BANK LTD.

MAJOR PROBLEMS FACED BY THE EMPLOYEES/WORKERS ARE LISTED

IN THE FOLLOWING:

1. The staff is being taken from the specific areas, linguistic priority, or
specific with business universities.
2. MCB conducts aptitude tests for entry level positions or for trainee
positions. HR department of EFL makes sure that they are conducting
these tests only in those universities, recommended by senior
management MCB
3. Not only this, reference of internal employee is considered very
essential. This makes the picture quite reversal when a candidate
fulfills all the criteria of job but does not have any reference in
company
4. After induction in company , a handsome amount and time is spent on
training of employees. And they are sent according to their education
background in specific departments.
5. Internal equity is somewhat not equalizing among all the employees.
Further, the percentile external equality is no maintained.
Considering Meezan bank and Askari

as the competitors of

MCB , are giving better compensation

6. Non-Merit and biased staffing is creating a silent storm . In fact, few
months ago, strike of employees was also observed which was calmly
finished after negotiation between protestors and the management.
7. Since head office in Lahore are not too much in coordination, there
are many conflicts between them.

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MCB BANK LTD.

8. Due to these problems, employees are frustrated and they leave MCB
after a certain time period. Usually 2-3 years of experience, which is
a trainee period.
9. Due to this habit of new employees, succession planning is usually
delayed.
10.Employee relations are going to be worst peak, when only those
employees are considered for promotion who are having strong
reference or about them a call comes from head office.
11. Since succession planning is now 70-80 % withheld, MCB is offering
higher salary to retain the employees. But on other hand, they are not
focusing on starting point i.e. non-merit selection and consequently
bad employee relations.
12.Favoritism is given to employees. Those who are actively in touch
with the management for their appraisal, and makes good PR, are
considered more appropriate person for promotion. Although, some
line managers submit their feedback about certain employees, but
management insist to give some raise to in touch employees and
hence line managers also disturbed on this situation. This condition is
very much drastic as the deserving employees are frustrated and leave
as they find another good job.
13.Performance Management is present in MCB and employees are also
given workshops and lectures on required annual targets and ultimate
targets. Management usually conducts series of workshop for this
purpose. The main problem in performance management system is
involvement of linguistic lobby working on both ends
.

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MCB BANK LTD.

14.Promotions are considered as the back bone for growth and career of
any employee. In MCB promotions are given only to those employees
who fulfill the personal satisfaction of line managers. Obviously, line
managers have a vital role in promotions of employees. Those line
managers, who submit the extra ordinary feedback about employees,
are subject to present in front of performance appraisal committee to
justify their feedback. They are not only pressurized to take back this
feedback, but also they are threatened for their own promotion.
Consequently, line managers have to be kept silence during
performance appraisal program.
15.In this way, when employees are working hard for attaining goals of
company according to long term plan, and they are not promoted or
given appropriate compensation, they search for new job inside or
outside Pakistan.
16.Linguistic lobbies are 2nd major reason for MCB, who choose only
those candidates referred by Head office (Lahore) . Induction test,
followed by technical interviews held at MCB Karachi , are not
supported by Head office. Whenever line managers force headoffice
to conduct the HR activities in order to appraise the right candidate,
it is not simply rejected but just avoided to show that there is no any
need. On the other hand, it is miss documented and hence misjudged
the performance of employee and only based on feedback provided by
plant manager.

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MCB BANK LTD.

RECOMMENDATIONS
Today the biggest challenge for banking industry in Pakistan is to retain existing
employee since various small banks are available and who are ready to hire the human
recourse of other bank and market comparative salaries also the raise given in annual
appraisal to existing staff is far less as compare to the raise a persona can get by joining
another organization there for after having a slight study of the banking industry and
specially Human recourse management in MCB bank Limited we have following
recommendation for the betterment of HR department

Working environment, equipment, furniture and staff dressing should be

according to the modern banking style.
Proper attention should be paid to the employs working at lower level
specially in branches
Employees should be given refresher courses.
The management should employ job rotation policy to retain the interest of the
employees in job.
hiring should be done through a professional HR department that is right
person for right Job
HR department usually hire over qualified for some routine work of clerical
staff that result in high employee turn over

ACTION PLAN

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MCB BANK LTD.

JOB ANALYSIS:
HR department should first hire a job analyst and perform job analysis of
all the employees working in the organization. This will help in identifying
job sizes and job descriptions and job specifications.
JOB EVALUATIONS:
Then they should evaluate what type of jobs their employees are performing
and what market is paying to them that are what would be the
compensations according to market level. This will help in designing
compensation packages at market level.
TRAIN THEIR MANAGERS:
Then they should identify the gaps in the performance of their line
managers, and train them, then they should do TNA (training needs
assessment) and should identify whether this training paid off or not. If for
eg: 7 out of 10 are still not performing properly, then that means there is a
problem from organizations side. Either it has not identified the gaps
properly, or not training them properly. If 1 or 2 of them still not perform
properly, then they should be punished because they did not gain the
knowledge and wasted their time and companys investment.

SHOULD DO PERFORMANCE MANAGEMENT QUARTERLY:

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MCB BANK LTD.

They should encourage their line managers to do performance management

quarterly, and give timely feedbacks to their sub-ordinates about his
performance. Also, identifies performance gaps and suggest trainings where
necessary. HR department should keep a complete track record themselves
about the performance of employees and should ask managers to keep the
record documented, so that they can show it to the employees where they
find them dissatisfied from their compensations.
REWARDS:
After measuring performance, those employees who deserves and have
performed well should receive compensations up to the mark. This creates
the satisfaction in employees and motivates them more, hence their
productivity increases. Rewards may be monetary or non-monetary. Job
enrichment, job enlargement can be done to make their work more
interesting.

MANAGERS AND MANAGEMENT SHOULD BE FAIR:

HR

department

and

managers

should

be

fair

when

distribute

compensations. There should be no favors given to their favorites. Rewards

and compensations should be given to those who deserve.

NEGOTIATIONS SHOULD BE ENCOURAGED:

Employees should be encouraged if they have any confusions or
dissatisfactions and if they want to discuss about their compensations. The
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process should be fair, documented, maintained and transparent, so that if

they want to know the whole process they can be shown the details.

RECOMMENDATIONS

Today the biggest challenge for banking industry in Pakistan is to retain

existing employee since various small banks are available and who are
ready to hire the human recourse of other bank and market comparative
salaries also the raise given in annual appraisal to existing staff is far less
as compare to the raise a persona can get by joining another organization

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MCB BANK LTD.

there for after having a slight study of the banking industry and specially
Human recourse management in MCB bank Limited we have following
recommendation for the betterment of HR department

Working environment, equipment, furniture and staff dressing

should be according to the modern banking style.
Proper attention should be paid to the employs working at lower
level specially in branches
Employees should be given refresher courses.
The management should employ job rotation policy to retain the
interest of the employees in job.
hiring should be done through a professional HR department that
is right person for right Job
HR department usually hire over qualified for some routine work
of clerical staff that result in high employee turn over

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MCB BANK LTD.

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