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Name & Address

MCB Bank Limited

Legal Form
Name of External Auditors

Public Limited Company. Listed on Karachi, Lahore &

Islamabad Stock Exchanges in Pakistan
M/s A.F. Ferguson & Company.(Chartered Accountants)

Name of Regulatory Body

State Bank of Pakistan (Central Bank)

Main Banking

Commercial, Consumer, Corporate, Correspondent and Islamic

Banking
Categories of shareholders - as of December 31, 2012
Pattern of Share Holdings

Description

Shareholding

Percentage

Directors, CEO & Children

98,928,007

10.7547

Associated Companies

197,310,846

21.4501

NIT & ICP

486,497

0.0529

Banks, DFI & NBFI

3,175,647

0.3452

Insurance Companies

60,756,081

6.6049

Modarabas & Mutual Funds

1,153,092

0.1254

Public Sector COS. & CORP.

27,079,155

2.9438

General Public (Local)

135,480,447

14.7284

General Public (Foreign)

2,541,784

0.2763

Foreign Companies

333,904,991

36.2995

Others

59,043,576

6.4188

Company Total

919,860,123

100.0000

Chairman

Mr.Mian Mohammad Mansha

President & CEO

Mr. Imran Maqbool President

Banking License No.

BCD (1) 17-66 dated 8th December 1966

Company Registration No.

0000115

National Tax No.

0700267-0

No.of employees

5946

Organization profile
MCB Bank Sri Lanka
MCB Bank Sri Lanka was established after MCB Bank Ltd Pakistan took over the operations of
Middle East Bank Ltd Colombo in 1994. During the last twenty years, the Bank has concentrated on
growth through improving service quality and investment in technology and people which is further
attested by the large deposit base of their ever-expanding branch network. Currently our network
extends to Fort, Maradana, Pettah, Wellawatte, Kandy,Galle and Batticoloa. The Head Office is
located at No.8, York Arcade Building, Leyden Bastian Road, Colombo 01.
MCB Bank has been able to reach several key milestones within just 20 years of their presence in the
Island. MCB Sri Lanka is one of the pioneers in introducing a fully-fledged Shariah Compliant
product range through its Islamic Banking Division (IBD). The Bank is strong in the Corporate
Banking Sector as we have been able to acquire several large Corporate and SME clients to our evergrowing corporate portfolio.
With the new branding campaign 'Bank for Life', the bank aims to familiarize itself with the
customers, offering a distinctive experience that truly caters to your evolving needs. At MCB Bank
Sri Lanka, we dedicate ourselves in trying to understand you better, so that we may create customercentric banking solutions. This is how MCB Sri Lanka stands out, by offering a more personal
approach to banking which is why you, our customers, are at the forefront of any and all decisions
we make.
MCB bank is unlisted in Sri Lanka & there are 152 staff are working for MCB Sri Lanka operations.

MCB Bank Pakistan

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan,
was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a
century of competitively edged and well positioned heights of success by deploying quality banking,
heads on technological developments, professionally leading management and prudent and ethical
work methodologies. MCB was nationalized along with other private banks in 1974 as part of
Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead
consortium in 1991.
Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest foreign
banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006,
has strategic foreign partnership with Maybank of Malaysia which holds 20% shares in MCB
through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad since 2008, has
international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri
Lanka and serving through a domestic network of over 1,150 branches and over 690 ATMs across
Pakistan with a customer base of 4.96 million (apprx.)
MCB is reputed as one of the most sound financial institution and as one of the leading banks in
Pakistan with a deposit base of PKR. 545 bln (apprx.) and total assets of PKR 766 bln (apprx.). The
bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal
role in representing the country on global platforms while being one of the few institutions that are
recognised and traded in the international market.
The bank has also been acknowledged though prestigious recognition and awards by Euromoney,
MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.
Vision Statement
To be the leading financial services provider, partnering with our customers for a more prosperous
and secure future.
Mission Statement
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.
Strategic Objectives of the Bank
Delivering remarkable returns to stakeholders, sustainable performance, exceeding market &
shareholders expectations.
Providing values added services through operational expansion, geography and upgraded
systems.
Building a corporate culture of equality, trust and team spirit as we remain dedicated to be a
socially responsible organization.

Products & Services Available at MCB Sri Lanka

Conventional Banking

Products
o
o
o
o
o
o
o
o

Savings Account
Current Account
Term Deposits
Kids Savings Account
MCB Kidz Club
Foreign Currency Accounts
Leasing
Securities Investment Account (SIA)

Services
o
o
o
o
o

Safe Deposit Lockers

Virtual Banking
Remittances
ATM
Trade Services

Islamic Banking

Products
o
o
o
o
o
o
o
o

Al - Makhraj Savings Account

Al-Makhraj Kidz Savings Account
Ianat Deposit - Current Account
Al - Makhraj Term Deposit
Al - Makhraj Savings RFC and NRFC
Export Savings Foreign Currency
Ijarah
Remittances

Services
o
o
o
o

Murabaha - Imports and Local

Virtual Banking
Safe Deposit Lockers
ATM

Sri Lankan Operation Organizational structure

Country Manager Sri
Lanka
Country Vice President

Secretary

Business Head

Operatioanl Head

Unit Head Islamic

Banking

Unit Head
Conventional
Banking

Branch Mananer Main

OfficeMaradna/Pettah
Branch Mananer Main
Office- Fort/Wellawate
Branch Mananer Main
Office- Kandy
Branch Mananer Main
Office- Galle
Branch Mananer Main
Office- Batticaloa

Oganizational Culture MCB Bank Limited

Which values characterize an organizations culture? Even though culture may not be immediately
observable, identifying a set of values that might be used to describe an organizations culture helps
us identify, measure, and manage culture more effectively. For this purpose, several researchers have
proposed various culture typologies. One typology that has received a lot of research attention is the
Organizational Culture Profile (OCP) where culture is represented by seven distinct values.

Innovative Cultures
According to the OCP framework, companies that have innovative cultures are flexible, adaptable,
and experiment with new ideas. These companies are characterized by a flat hierarchy and titles and
other status distinctions tend to be downplayed. For example,MCB Lite Pass It On! Buckle up!
Your relationship with your traditional bank account is about to radically change and transform with
MCB Lite (pass it on), a socially connected payments solution that saves you time and money.
Aggressive Cultures
Companies with aggressive cultures value competitiveness and outperforming competitors; by
emphasizing this, they often fall short in corporate social responsibility. In aggressive companies,
people may use language such as we will kill our competition.
Outcome-Oriented Cultures
The OCP framework describes outcome-oriented cultures as those that emphasize achievement,
results, and action as important values. A good example of an outcome-oriented culture may be the
Staff exsalance awards. Having a culture emphasizing sales performance, Best Sales tallies

revenues and other relevant figures daily by Branch. Employees are trained and mentored to sell
company products effectively, and they learn how much money their department made every day.
Stable Cultures
Stable cultures are predictable, rule-oriented, and bureaucratic. When the environment is stable and
certain, these cultures may help the organization to be effective by providing stable and constant
levels of output. These cultures prevent quick action and, as a result, may be a misfit to a changing
and dynamic environment.
People-Oriented Cultures
People-oriented cultures value fairness, supportiveness, and respecting individual rights. In these
organizations, there is a greater emphasis on and expectation of treating people with respect and
dignity.
Team-Oriented Cultures
Companies with a team-oriented culture are collaborative and emphasize cooperation among
employees. For example, MCB Bank facilitates a team-oriented culture by Staff Rotation-training
its employees so that they are capable of helping one another when needed. The company also
emphasizes training intact work teams. In team-oriented organizations, members tend to have more
positive relationships with their coworkers and particularly with their managers.
Detail-Oriented Cultures
Remember that, in the end, culture is really about people. Organizations with a detail-oriented culture
are characterized in the OCP framework as emphasizing precision and paying attention to details.
Such a culture gives a competitive advantage to companies in the hospitality industry by helping
them differentiate themselves from others.
Strength of Culture
A strong culture is one that is shared by organizational members that is, a culture in which most
employees in the organization show consensus regarding the values of the company. The stronger a
companys culture, the more likely it is to affect the way employees think and behave. For example,
cultural values emphasizing customer service will lead to higher-quality customer service if there is
widespread agreement among employees on the importance of customer-service-related values.
It is important to realize that a strong culture may act as an asset or a liability for the organization,
depending on the types of values that are shared. For example, imagine a company with a culture that
is strongly outcome-oriented. If this value system matches the organizational environment, the
company may perform well and outperform its competitors. This is an asset as long as members are
behaving ethically. However, a strong outcome-oriented culture coupled with unethical behaviors
and an obsession with quantitative performance indicators may be detrimental to an organizations
effectiveness.
One limitation of a strong culture is the difficulty of changing it. In an organization where certain
values are widely shared, if the organization decides to adopt a different set of values, unlearning the
old values and learning the new ones will be a challenge because employees will need to adopt new
ways of thinking, behaving, and responding to critical events.
Do MCB Bank Have a Single Culture?

So far, we have assumed that a company has a single culture that is shared throughout the
organization. In reality there might be multiple cultures within the organization. For example, people
working on the sales floor may experience a different culture from that experienced by people
working in the Branches. Cultures that emerge within different departments, branches, or geographic
locations are called subcultures. Subcultures may arise from the personal characteristics of
employees and managers, as well as the different conditions under which work is performed. In
addition to understanding the broader organizations values, managers will need to make an effort to
understand subculture values to see their effect on workforce behavior and attitudes.
Sometimes, a subculture may take the form of a counterculture. Defined as shared values and beliefs
that are in direct opposition to the values of the broader organizational culture, countercultures are
often shaped around a charismatic leader. For example, within a largely bureaucratic organization, an
enclave of innovativeness and risk taking may emerge within a single department. A counterculture
may be tolerated by the organization as long as it is bringing in results and contributing positively to
the effectiveness of the organization. However, its existence may be perceived as a threat to the
broader organizational culture. In some cases, this may lead to actions that would take away the
autonomy of the managers and eliminate the counterculture.

Organizational Environment at MCB

Organizational environment divided into two categorize there are internal environment factors and
external environment factors.

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Internal Environment Factors

Internal environment has a directly impact to the business. The internal factors are generally
controllable because the company has control over these factors. The organization can modify the
internal environmental factors because of that internal factors have under control level of the
organization. Organization internal factors are resources, capabilities.
Resources
The tangible resources are the easiest to identify and evaluate, financial resources and physical assets
are identifies and valued in the firms financial statements intangible resources are largely invisible
but over time become more important to the firm than tangible assets because they can be a main
sources for a competitive advantage. Such intangible recourses include reputation assets (brand,
Image,goodwil) and technological assets.
Capabilities
Capabilities are used to refer firms capacity undertaking a particular productivity activity.
External Environment Factors
External environment has an indirect influence to the business. External environment factors are
uncontrollable by the business. That external environment can be divided into two groups there are
macro environment and micro environment.
Micro Environment
These are the external factors close to the company that have directly impact to the organization.
These factors includes
1. Shareholders
Any person or company that owns at least one share in a company
2. Suppliers
An individual or an organizational involved the process of produce the product or services available
use for consumption by consumer or business user is known as supplier.

3. Distributors/Network
Distributors are the one of external factor that can be categorize under micro environmental factors.
As an external factor of distributors also close to the company and directly impact to the organization
business activities.
4. Customers
The any business organization customers are the important external factor, because main purpose of
the business activities are satisfied the customers needs and wants.
5. Competitors
A company in same industry, which produce the similar product and services known as competitor.
6. Media
Positive or adverse media attention on an organization product or services can in some case make or
break an organization.

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MCB always promises to provide best quality products & services to the end users. Therefore it is
very important to have a good relationship with above mentioned external micro environmental
factors.
MCB always believes distribution/network is a major part of their success.
Customer is the most important factor for any organization. MCB always ensures that its service that
customer gets is the best service in the market. That is because of the quality standard of MCB
customer services. It is definitely gives maximum satisfaction to the customers.
When it comes to competitors MCB always keep an eye on competitor activities.
Macro Environment Factors
Macro environmental factors are external factors and that factors cannot be controlled by the
organization. The business organization gives more consideration to these factors to understand the
threats and opportunities in business environment. Macro environment includes political, economic
and social factors.
Political Factors
Political factors include government legal and regulation situation.
Tax policy
Environmental Laws
Trade restriction and traffic
Economic Factors
Economic factors affect the purchasing power of potential customers and firms cost of capital.
Economic growth rate
Exchange ate
Interest rate
Social Factors
Social factors include the demographic and cultural aspect of the external macro environment.
Population growth rate
Age distribution
Career attitude
Macro environment factors directly influence the business activities of MCB since its a foreign
Bank. As a political factor the government changes the tax policies for goods and services. Exchange
rate and the interest rate also directly influence the Banking activities as it is a global bank carrying
out transactions with the rest of the world. For example: Trade services.

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Decision making at MCB

Decision making is a daily activity for any human being. There is no exception about that. When it
comes to business organizations, decision making is a habit and a process as well.
Effective and successful decisions make profit to the company and unsuccessful ones make losses.
Therefore, corporate decision making process is the most critical process in any organization.
In the decision making process, we choose one course of action from a few possible alternatives. In
the process of decision making, we may use many tools, techniques and perceptions.
In addition, we may make our own private decisions or may prefer a collective decision.
Usually, decision making is hard. Majority of corporate decisions involve some level of
dissatisfaction or conflict with another party.
Let's have a look at the decision making process in detail in MCB Bank.

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Steps of Decision Making Process:

Following are the important steps of the decision making process. Each step may be supported by
different tools and techniques.

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Step 1: Identification of the purpose of the decision:

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when
it comes to identifying the purpose of the decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?

Step 2: Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of
factors involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as information related to the
factors and stakeholders involved in the problem. For the process of information gathering, tools
such as 'Check Sheets' can be effectively used.
Step 3: Principles for judging the alternatives:
In this step, the baseline criteria for judging the alternatives should be set up. When it comes to
defining the criteria, organizational goals as well as the corporate culture should be taken into
consideration.
As an example, profit is one of the main concerns in every decision making process. Companies
usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline
principles should be identified related to the problem in hand.
Step 4: Brainstorm and analyse the different choices:
For this step, brainstorming to list down all the ideas is the best option. Before the idea generation
step, it is vital to understand the causes of the problem and prioritization of causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect
diagram helps you to identify all possible causes of the problem and Pareto chart helps you to
prioritize and identify the causes with highest effect.
Then, you can move on generating all possible solutions (alternatives) for the problem in hand.
Step 5: Evaluation of alternatives:
Use your judgement principles and decision-making criteria to evaluate each alternative. In this step,
experience and effectiveness of the judgement principles come into play. You need to compare each
alternative for their positives and negatives.
Step 6: Select the best alternative:
Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best
alternative is an informed decision since you have already followed a methodology to derive and
select the best alternative.

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Step 7: Execute the decision:

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with
the help of subordinates.
Step 8: Evaluate the results:
Evaluate the outcome of your decision. See whether there is anything you should learn and then
correct in future decision making. This is one of the best practices that will improve your decisionmaking skills.
Decision Making in MCB
When it comes to making decisions regarding customer service, Mostly Branch Managers should
always weigh the positive and negative business consequences and should favour the positive
outcomes.
This avoids the possible losses to the organization and keeps the company running with a sustained
growth. Sometimes, avoiding decision making seems easier; especially, when you get into a lot of
confrontation after making the tough decision.
But, making the decisions and accepting its consequences is the only way to stay in control of MCB
corporate life and time.

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Controlling Process at MCB

Controlling is the process of monitoring,Compairing and Correcting work performance.It is
important to an organization to know that organizational goals are met. If not why it is?
A Five-Step Control Process implemented in MCB Bank

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MCB has the above controlling process where they can evaluate the performance of every employee.
It helps employee to get the measurement about their achievements and their lacking areas.
For example,
i. Standard sale/Deposit Rs 120 Mn per annum per Branch
ii. Standard profit Rs 4Mn per annum per Branch
iii. Reduction in cost by 5%.
Sometimes it is not possible to express the standards in numerical terms. For example, setting up of
quality standards or standards for managerial work, etc. The standards must specify the time limit
within which they have to be achieved and as far as possible the standards must be set up for short
term. If long term standards are set up they must be divided into short term.
For example, standard sale p.a. is 120Mn then per month 10Mn target can be taken for comparison.
With short term targets or standards the errors can be detected early and timely actions can be taken.
The standards must be revised from time to time keeping in mind the changes of business
environments.

Motivation at MCB
What are the big motivation factors for employees in MCB?
It's relatively easy and cheap to solve most retention problems. Most workers really don't leave for
money but managers like to hear it's the money, because that shifts the blame for losing employees
away from themselves and onto other parts of the organisation.
Employees too often say they left for financial reasons in exit interviews to preserve their positive
references and because they see little chance that telling the truth will result in any changes.
If you look at the real causes of turnover, through delayed exit interviews and comparing the
difference between an exiting employees current and offered salaries, you'll find that managers have
control over the majority of the reasons people leave their jobs.
The big motivators

Communication - Honest, frequent two-way communication between workers and

managers, including constructive discussion of workplace issues.

Challenging and exciting work - Ensure every employee has a challenge plan and is
periodically asked to rate the degree of job excitement.

Opportunities - Reward managers for developing their employees and make sure that
employees are held accountable for following through on their individual learning plans.

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Recognition and reward for performance - Make it clear what the incentives are and
reward fairly across all departments so employees see the benefits of effort.

Control over the job - You've employed your staff to do a job, so let them do it. Trust people
to be able to shape the way they work and the projects they get involved in.

Business Impact - Provide employees with periodic reports on the effect their projects are
having on the business so they know their work makes a difference.

The Money Factor

An excellent argument can be made that managers can significantly influence employee
compensation at many Banks. It is certainly true that compensation is so interrelated with the Big Six
issues, that taking compensation out of managers hands weakens their ability to retain talent.
By telling employees up-front that managers have control over compensation, you force mangers to
discuss pay on a one-on-one basis with their workers. After managers overcome the "my hands are
tied" compensation hurdle, other individual communication on motivational issues is much easier.
Even when new salary offers are significantly higher, you'll often find that bad management practices
caused employees to look for other jobs, and that only after looking did they realize they could get
more money and better treatment if they left. One solution to this type of turnover is relatively
simple. Start by telling employees what they should expect from their managers, and help managers
improve their delivery of the key motivators.
If you find employees are leaving for better jobs, HR needs to give managers the tools necessary to
make their employees current jobs the better jobs.
Making jobs better
MCB managers are responsibility to ensure their employees are satisfied and motivated. Managers
are accountable and publicise their retention successes and failures by distributing retention metrics
throughout the organization.
Develop a periodic measurement system to see if managers are delivering. Then tie a portion of
managers compensation to successful delivery of the motivation factors and a low turnover rate
among top performers
MCB should educate its employees on what motivational factors are, and how they are strive to
motivate them. if staff can see that your business is putting in the effort, the likelihood of them
leaving is vastly reduced.

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Leadership style at MCB

Coercive
leaders

Authoritative
leaders

Tells people what to

do, expects immediate
compliance,
reinforces to ensure it

Demand
immediate
compliance

Do what I say

Provides long term

direction and vision
for others, explains
the 'big picture'

Mobilise
people toward
a vision

Come with me

Often destructive, can be

occasionally used in difficult
circumstances.

Requires enthusiasm and

clear vision. Most effective
leadership style generally.
Leader states direction but
allows people leeway to
devise their own means,

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gives clear performance

feedback. May not work in a
team of peers or experts.
Affiliative
leaders

Create
emotional
bonds
and
harmony

People come first

Builds commitment
among the team by
involvement,
generates new ideas
with the team, aims
for consensus

Build
consensus
through
participation

Lets

Leads by example,
focuses
on
accomplishing tasks
to high standards of
excellence,
expects
team members to
follow

Expect
excellence
and
self
direction

Do what I do

Focuses on the long

term development of
the team, supports
through advice and
encouragement.

Develop
people for the
future

I believe in you, I am
investing in you, I expect
your best efforts

Creates
harmony
among the team and
between self and team
members,
considers the whole
person

Democratic
leaders

Pacesetting
leaders

Coaching
leaders

Values peoples emotions

more than tasks / goals. Owns
emotions openly. Focus on
praise can allow poor
performance to continue
uncorrected or give the
impression that mediocrity is
tolerated so use in
conjunction
with
authoritative style.

Increases flexibility and

responsibility, Requires more
meetings, can leave people
feeling directionless. Can
generate new ideas.

Pacesetting leaders set high

standards and exemplify
them. Can destroy climate.
People need to see how what
they are doing fits into the
overall vision.

Counselling style. Helps

develop people. Encourages
delegation. Looks at strengths
and weaknesses.

MCB uses all the above leadership styles in different counties, regions, departments & Branches.
That type of leadership style coming from top management level of the country. In MCB Country &
organization culture includes that type leadership style in any superior. Because of that type of

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decision lead by the one or more employees to take that decisions. When they go to take that type of
decisions, all employees can provide their ideas and strategies for productive decision.
MCB always welcomes Simplycity & innovations.

Reference
I.
II.

http://www.yourarticlelibrary.com/management/controlling-process-notes-oncontrolling-process-organization-management/8730/
https://www.mcb.com.pk/

III.

http://www.mcb.com.lk/

IV.

http://en.wikipedia.org/wiki/Management_process

V.

PGDBM Notes by Dr Kajendra

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