STATE BANK OF PAKISTAN [DATE]

SUBMITTED TO:
Miss Hina Ameen

SUBMITTED BY:
Arisha Khan 11948
Umaima Arif 12076
Nayab Sattar 11990
Nihal Hussain 11837
Salman Zaidi 12290

CLASS:
BBA 6 (A)

DATE
22th May 2019

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STATE BANK OF PAKISTAN [DATE]

ACKNOWLEDGEMENT

"I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals. I would like to extend my
sincere thanks to all of them.
I am highly indebted to Miss Hina Ameen for his guidance and constant
supervision as well as for providing necessary information regarding the project &
also for his support in completing the project. I would like to express my gratitude
towards his kind co-operation and encouragement which help us in completion of
this project.
My thanks and appreciations also go to my group members in developing the
project and people who have willingly helped me out with their abilities."

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STATE BANK OF PAKISTAN [DATE]

TABLE OF CONTENT

S.no Particulars Pg. no

1 Executive Summary 4

2 Company Profile 5

3 Company’s Organogram 6

4 Human Resource management 7

5 Objectives 7

6 Human Resource planning 8

7 Recruitment 9

8 Selection 10

9 Training & Development 11

10 Job performance standards 13

11 Performance Assessment 15

12 Appraisals 16

13 Compensations 16

14 Conclusion 17

15 Bibliography 17

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STATE BANK OF PAKISTAN [DATE]

EXECUTIVE SUMMARY

This reports includes the information about the State bank of Pakistan that is
the central bank of Pakistan. It is a monetary body. It controls all the
commercial bank which is operated in Pakistan. It monitors all the commercial
banks and maintains and manages the money supply in the country. There is a
large number of departments and functions that performs clearing.

In this report we have firstly defined the brief introduction of State bank of
Pakistan and its management. Then we have defined the company's cooperate
level hierarchy with the help of organizational chart. We also focuses on
objectives of organizations and its departments along with the social and
personal objectives. The HR department of State bank of Pakistan performs
many activities that have also been presented in this report. These activities
include recruitment, selection, performance assessments, appraisals, training
and development and benefits and compensation. We have also discussed the
job performance standards on this report. Finally, we have come towards
conclusion. In short this report contains the enormous information about the
human resource department of State bank of Pakistan.

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STATE BANK OF PAKISTAN [DATE]

COMPANY PROFILE
INTRODUCTION
The State Bank of Pakistan is the central bank of the country. It is a universal monetary institute
in modern times. It acts as the leader of the money market. It constitutes the apex of the money
structure of an economy. It Supervises, controls and regulates the activities of commercial banks.
As an operational arm of the Central Bank, SBP Banking Services Corporation is engaged in
managing currency, foreign exchange operations and foreign exchange adjudication; providing
banking services to the federal and provincial governments and financial institutions regulated by
State Bank of Pakistan, conducting development finance activities in support of the development
finance group of the SBP, implementing export refinance schemes, and performing agency
functions like sale/purchase of national prize bonds including managing prize money draws, sale
and purchase of national saving schemes or any other functions assigned by State Bank of
Pakistan.
Usually the starting point for a central bank is a banking system that is already in place - the
banking system necessitates the presence of a central bank. But the State Bank of Pakistan (SBP)
is unique in the sense that it started its function in a newly born country, where it also had to
shoulder responsibilities of developing and rehabilitating a banking system and the economy, in
addition to the traditional central banking functions. Performance of the Bank since its inception
in 1948, as reviewed in subsequent pages, shows that it has faced all the challenges with a great
zeal and commitment. The founders of the Bank set a multi-dimensional target before it that
included not only regulation of the monetary and credit system but also the growth of this
system. The vision of its founders was a stable monetary system in Pakistan with fuller
utilization of the country’s productive resources (SBP Act, 1956).

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STATE BANK OF PAKISTAN [DATE]

ORGANOGRAM OF STATE BANK OF PAKISTAN

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HUMAN RESOURCE MANAGEMENT:

Human resource management (HRM or HR) is the management of human resources. It is
designed to maximize employee performance in service of an employer's strategic objectives.
HR is primarily concerned with the management of people within organizations, focusing on
policies and on systems. HR departments are responsible for overseeing employee benefits
design, employee recruitment, training and development, performance appraisal, and rewarding
(e.g., managing pay and benefit systems).
Human Resources is a business field focused on maximizing employee productivity. Human
Resources professionals manage the human capital of an organization and focus on
implementing policies and processes. They can be specialists focusing in on recruiting, training,
employee relations or benefits. Recruiting specialists are in charge of finding and hiring top
talent. Training and development professionals ensure that employees are trained and have
continuous development. This is done through training programs, performance evaluations and
reward programs. Someone in benefits develops compensation structures, family leave programs,
discounts and other benefits that employees can get.

OBJECTIVES:
ORGANIZATIONAL OBJECTIVES:
The organizational objective is to improve access to financial services for the poor and
marginalized groups and for micro, and small enterprises in Pakistan.
Financial inclusion helps in reducing poverty by Increasing access to bank deposits that enables
individuals to accumulate savings in a safe and secure environment. Its objective is to reduce
vulnerability of poorer households via minimizing negative impacts of income shocks and to
improve access to credit thereby improving asset base.
Decreasing proportion of low-risk, low-return assets held by households for precautionary
purposes. The objective of organization is to increase economic growth by Facilitating
transactions and by providing investment opportunities to all segments of the population and by
mobilizing savings.

FUNCTIONAL OBJECTIVES:
The functional objectives of human resource department are as follows:
 To achieve organizational goals by preparing employees for present and future challenges
through an integrated Training and Development Program.
 To reinforce SBP’s vision, mission, strategic goals and core values by encouraging
timely, accurate and consistent communication.
 The objective is to maintain a healthy and efficient workforce by offering opportunities
for rejuvenation, meeting personal commitments or any emergencies by availing leave
through a formal and structured process.

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SOCIETAL OBJECTIVES:
 To make sure that the SBP employees is socially and ethically responsible.
 To Minimizing negative impact of societal demands.
 To respond to the needs and challenges of society.
 To reflect society concern’s e.g.; ecological.
 To manage human resource ethical socially responsible manner.
 To compile various ethical and legal standards.

PERSONAL OBJECTIVES:
State Bank of Pakistan recognizes individual performance, potential, aspiration for self growth
and is committed to providing career development opportunities to its employees. The objective
is to provide a fair and transparent mechanism for promotion of all regular employees.
HUMAN RESOURCE PLANNING:

Another new function that has emerged in recent years in human resource planning (also) called
manpower planning). Sometimes a specific person or office has this as its primary responsibility;
more commonly the responsibilities are shared by several people within the corporate personnel
unit. Human resource planning is the process by which is a firm insures that it has the right
number of qualified persons available at the proper times, programming jobs that are useful to
the organization, and which provide satisfaction for the individuals involved.

The principal elements involved in human resources planning are as follows:

 Goals and plans of organization;

 Current human resource situation including skills inventory;
 Human resource forecast including comparison of projected future demand for employees
with projected supply;
 Designing programs to implement the plans; and
 Audit and adjustment.

Planning unit is responsible to develop annual manpower plan for SBP, conduct job analysis,
prepare job descriptions, and conduct job evaluation process. This division looks after the
department’s Budget & Business Planning process through its Budget Management &
Administration Co-ordination Unit. The Unit is also a part of this Division, which is responsible
to develop annual manpower plan for SBP, prepare job descriptions, and conduct job evaluation
process. Further, this division is also responsible for catering to the training needs of HRD
officers in co-ordination with the Training & Development Department.

The Department, through its multi-pronged strategy, aims to enhance the HR capacity of this
organization through structured talent management and play a major role in successful
implementation of targeted change management initiatives for organizational transformation. It

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is also firmly committed towards principals of integrity and merit based decision making which
are among the primary attributes of this esteemed organization.

RECRUITMENT:

State Bank of Pakistan recruitment and selection unit is responsible for attracting, selecting and
recruiting the right people from the market. The unit firmly works on adopting latest
organizational theories & change management processes to bring in efficiency.

THE RECRUITMENT OPERATIONS UNIT:

This unit deals from placing job advertisements to timely recruitment of competent personnel by
using modern selection techniques.

THE OVERALL RECRUITMENT PROCESS ADOPTED IN STATE BANK:

State Bank recruitment is responsible for attracting, selecting and recruiting the right people from
the market. State Bank of Pakistan is proud of its highly professional, transparent and objective
approach in its recruitment and selection processes. After applying the eligibility criteria, which
depends on the Job grade, a series of selection procedures are applied before hiring employees.

 Advertisement in News Papers for recruitment

 Only on Qualification basis.
 65% + academic record.
 High communication skills.

RECRUITMENT CHANNELS:

State Bank of Pakistan use Print Media Advertising (News Paper) in Recruitment phase.
Today’s SBP use online format, the newspaper is efficient over a large area. However, it is also
equally effective in the local area. Local newspapers are distributed in the locality and are read
by almost everyone. They are flexible and cover many niches. This flexibility helps in
advertising vacancies in various sectors. It works well for the SBP with fewer budgets. SBP have
a look at the advantages of the newspaper recruitment.

LOCALITY AND LOCAL EXPERIENCES:

Local newspapers are the papers that cover the news of the international level. However, the
people of the same geographical region read the news. There are certain jobs that require
experience and knowledge of the locality. Therefore, placing the advertisement in the local
newspaper serves as a profitable and efficient deal.

BUDGET FRIENDLY MODE:

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STATE BANK OF PAKISTAN [DATE]

If SBP budget limited? Well, the newspaper is a budget friendly mode. It is flexible for the use.
Depending upon the budget SBP can vary the size of the advertisement. Mentioning a few lines
is more than enough to place the ad. However, if the budget permits SBP can go for an ad with a
picture relating to the firm. This increases the possibilities of more attraction from the job
seekers. As the odds of qualified candidates increase, there are more options for the interviewer
to select a deserving job seeker.

COMFORT AND CONVENIENCE:

Comfort and convenience walks side-by-side. Why do SBP think that the invention of laptop was
possible? Well, the wireless technology is a solution to the dozens of wire connections and its
trouble. It makes SBP life easier. Similarly, newspaper makes life easier. Nevertheless, how is
that possible? Candidate can access a newspaper at anytime and anywhere. Unlike the online
jobs that require tools like PCs, laptops or mobile phones, newspapers are convenient. Thus, the
written form is more convenient compared to the broadcast media generated ads.

APPROACH AND REACH:

Approach and reach matters a lot in the business firms. However, one more factor needs SBP
consideration in the process i.e. time. If the ad that SBP have posted has a time condition or is a
limited period vacancy, then SBP receive more application. People receive newspaper on a daily
or weekly basis, thus, the job seekers reciprocate as soon as they read the post. Therefore, it
saves a good amount of time.

SELECTION:

Normally the candidates go through the process of test, group discussion and interview. The
Interview is conducted by a team of internal as well as external professionals of the related area.
Sophisticated recruitment and selection tools like oracle based data management system; online
application and behavioral based interviewing techniques have been introduced.

 Interview
 Group discussions.
 Medical Test, Selection.

At the time of hiring the HR manager focus on the following things to evaluate the applicants.
The candidate should have the following skills that are as follows:

 Communication skills
 Body language
 Confident level of the candidate.
 Flexible people in their organization who are intellectual as well as street smart.
 Bold and could justify himself.

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 Balanced personality people that can handle the situations easily.

 People who can handle situation. They provide the situations to candidate and ask them
how they would deal it.
 The candidate should have the knowhow about the bank.
 For fresher’s, they consider the academics results.
 Their behavior gestures and postures should also be upright.
 They should have good presentation skills

TRAINING AND DEVELOPMENT:

State Bank of Pakistan considers training and development as an investment and firmly believes
in continuous and ongoing development of its human capital. Its objective is to achieve
organizational goals by preparing employees for present and future challenges through an
integrated Training and Development Program.

State Bank of Pakistan also strengthened its training area. Training courses on central and
commercial banking for both domestic and international participants were designed. Under the
domestic training program, me, the in-service training schemes have always remained on high
priority in the training strategy of the Bank. During1981-82, two Training Units were established
- one each at Karachi and Lahore to cater to the training needs of the Bank's staff of different
categories attached to various offices. The Training Department of the Bank also tries to secure
training placements for Bank officials in different training institutions both at home and abroad
like NIPA, PIDE, IMF, ADB, IDB, World Bank, etc. Recently Training Department has been
merged with Human Resource Department in order to make human resource managements more
efficient at SBP.

NIBAF:

In 1997, with the abolition of Pakistan Banking Council, the State Bank assumed the charge of
National Institute of Banking and Finance (NIBAF), Islamabad. At NIBAF excellent training
facilities are available for participants on commercial banking, central banking and other areas
related with the financial sector. The NIBAF was converted into an independent subsidiary of
SBP in 2003 under a full time Managing Director. It operates two campuses – one at Islamabad
and the other at Karachi (North Nazimabad). In pursuance of the Bank's objective to promote
technical cooperation among developing countries, international training courses for the benefit
of bankers from Afro-Asian, Latin American, Commonwealth and Central Asian States are also
organized each year at NIBAF.

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CATEGORIES OF TRAINING:

Training & Development is divided into three categories:

PRE-INDUCTION TRAINING

This is mandatory for entry-level positions of State Bank Officers Training Scheme (SBOTS),
Statistical Officers Training Scheme (SOTS) and Economic Analyst Training Scheme EATS and
constitutes residential training at NIBAF, Islamabad of varying durations.

POST INDUCTION TRAINING

All OG-1 to OG-4 employees are required to complete minimum 100 hours training in each
financial year. These trainings are of the following types:

a. Functional Training

HRD in consultation with Departmental Heads identify and accordingly formulate training
program for the functional training of each Grade in each Group which is preferably conducted
in-house.

b. Soft-Skills Training

Soft-skills training includes Communications skills, Team- building, Values, Emotional

intelligence and other similar skills.

LEADERSHIP AND STRATEGIC TRAINING

OG-5, OG-6 and OG-7 officers is required to complete minimum 50 hours of training in each
financial year. These trainings shall mainly focus on Leadership Development, Change
Management, and Strategic Thinking etc.

Training for OG-1 to OG-4 is preferably conducted by NIBAF. However, HRD arrange training
through other channels. Training needs of officers is identified during Performance Planning and
Performance Appraisal. Additional training needs may arise as a result of acquisition of new
technology, introduction of a new function or business process reengineering. Exceptions to
mandatory training is allowed by the Governor on the recommendation of ED-HR.

FOREIGN TRAINING

Employees may also be sent to foreign training program. Employees proceeding on foreign
training program have to fulfil all requirements including signing a Legal Undertaking / Foreign
Training Bond.

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TRAINING EVALUATION

Employees upon returning from any training submit an evaluation form to the Human Resources
Department. A periodic External Audit and/or Evaluation of training effectiveness is conducted
and the outcome is submitted for the review of the Central Board.

TRAINING BUDGET

A budget of up to 4% of the total payroll cost shall be allocated for training on a yearly basis

TRAINING ON ISLAMIC BANKING:

The NIBAF has also designed a module on Islamic banking and finance in its training courses
designed for State Bank’s officers. Courses of the Institute of Bankers, Pakistan have been
revised to include topics on Islamic economics, banking and finance.

DEVELOPMENT OF SPECIALIZED FINANCIAL INSTITUTIONS:

The State Bank has actively participated in setting up a number of specialized credit institutions
designed to meet the long and medium-term financing needs of various sectors of the economy.
These institutions include Pakistan Industrial Credit and Investment Corporation of Pakistan
(PICIC), Industrial Development Bank of Pakistan (IDBP), National Development Finance
Corporation (NDFC), Agricultural Development Bank of Pakistan (ADBP), Federal Bank for
Cooperatives (FBC) and House Building Finance Corporation (HBFC). These institutions were
established to provide credit to industrial, agricultural and other sectors. The Bank also
subscribed to the share capital of the People's Finance Corporation - renamed subsequently as
Small Business Finance Corporation (merged in to the present Small and Medium Enterprise
Bank), the Equity Participation Fund and Banker's Equity. These institutions were designed to
provide finance to small businesses and the major sectors of the economy.

JOB PERFORMANCE STANDARDS:

State Bank of Pakistan goes to become more efficient then he loses the responsiveness.
Similarly, if the SBP goes to achieve more responsiveness then he loses the efficiency. There is a
need of proper and perfect mix for both of them to achieve the organization goals. So that SBP
could be run successfully.

1. STANDARDS:

As, far as SBP is concern, SBP is committed to high standards of Corporate Governance and
Management. In recent years major initiatives have been taken to improve corporate governance
and management structure at SBP. The Central Board reconstituted its committees and to make
them more responsive to changing needs of SBP. These Committees comprise of non-executive
directors and representatives from the management in order to have a comprehensive review and

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analysis of various proposals before they are considered by the Board. The composition of
NIBAF Board-a subsidiary of SBP on training- was changed in order to provide an opportunity
to thoroughly deliberate upon policy issues and quality of training programs at NIBAF by
appointing prominent economists and individuals from academia. As being a responsive
organization, now State Bank has the following standards:

 Improved R & D Dept.

 More focus on HR Strategic Role
 Maximum Attention to the Workforce Development
 More Support from IT to maximize the Efficiency
 Flexible Payment System Department

2. MEASURE:

In State Bank every evaluation period – 12 months in the case of State Bank –employees are
categorized into three buckets: top 10% as high performers, middle 80% as normal or middle
performers and bottom 10% as low performers. State Bank calls this a pay-for-performance
system where the high performers get a big reward (bonus or salary raise), the middle performers
get some reward, but the low performers are often laid off or given a clear signal that their job
may be affected. Many companies that use the bell-curve for performance evaluation today.

3. FEEDBACK:

State Bank of Pakistan now turns to the dynamics. Figure below shows that when an individual
receives a low performance rating (evaluated performance), they feel the pressure to perform
better to maintain higher performance rating. The causal hypotheses in Figure models what
manager expects every time the employee performance falls. A corollary to this expectation is
that other forces such as reward or reputation to keep up the performance of a high-performer
once they receive a good evaluation.

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4. CORRECTION:

State Bank of Pakistan does some correction after observed employee performance. So what is
the effect of pressure on performance? Figure below shows the relationship we derived from our
interviews. When there is no pressure to perform, an employee may slack. As the pressure
mounts, the performance improves. However, there is a limit to performance. If the pressure
becomes unbearable, the performance fall below the best possible level, as people are stressed
and being to cut corners. This is the tipping point beyond which the company should try not to
operate.

State Bank today uses a bell-curve for performance evaluation process. They reward a small
percentage of top performers, encourage a large majority in the middle to improve, and lay-off
the bottom performers. SBP’s believe that such pay-for-performance system encourages
employees to perform better.

PERFORMANCE ASSESSMENT:

Promotion based on Performance they evaluate their performances through our software which is
performance management system (PMS) through which they evaluates the employees
performance and decide for the job rotation and job enlargement of the employees which may
result in the motivation of their employees this makes employees trust on each other and focus
on a team work.

SBP’s financial year starts from July to June. In July goals are assigned for everyone in PMS
form 1for the whole year. In June every employee have to fill PMS form 1 and inform that I have
done this against this goal I have achieved that percent or if will unable to achieve the goal so he
mentioned that he haven’t achieved this.

Boss will fill form 2 that is replicated as form 1. He evaluates the employees’ performance on the
basis of form 1 and according to his interaction, behavior, conduct and attendance then score
them. If the employee get 10 score then he will be eligible for promotion.There is a grading
system for evaluating employees’ performance that are A B B+ C D(poor performance). Every

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STATE BANK OF PAKISTAN [DATE]

grade have some marks. After the approval by immediate boss the director review that and then
give grades to employees.

APPRAISAL:

After the performance assessment the employees get the appraisals. On the basis of the grades
that has been given in the assessment the employees get increment in their salary by 5% 8% 9%
and so on

Each employee’s performance shall be assessed in accordance with the Performance

Management System (PMS) guidelines, as notified from time to time through Circular, by
Human Resources Department.

An employee who receives PMS numerical rating of 1.5 or below in any given assessment period
(PMS Year) or 1.51 to 2.0 in three out of last five performance years will be placed on a
Performance Improvement Plan as set out in Regulation 38.

Performance Appraisal can be done with following objectives in mind:

 To identify the strengths and weaknesses of employees to place right men on right job.
 To maintain and assess the potential present in a person for further growth and
development.
 To provide a feedback to employees regarding their performance and related status.
 To review and retain the promotional and other training programs.

COMPENSATION AND BENEFITS:

It is responsible to carry out all activities related to developing best market strategies regarding
compensation and benefits for our employees. As we have already mentioned that State Bank use
Bell Curve System to measure the performance of the individual employees. So, the employees
lying on the top of the curve are provided with maximum compensation and benefits and bank
never want to lose these high performers. So we can say that the compensation and benefits are
awarded to the employees those are on the top of the bell curve. State Bank provides the
following types of Compensation and benefits to its potential employees.

 Free Medical Facilities

 Salary and Maximum Increments (Performance Based)
 Free Medical Facilities for Employee’s Parents and Family
 Promotions (Performance Based)e) Fringe benefits (Performance Based)
 Transportation and Patrol (Performance Based)
 Bonuses (Performance Based)
 Easy Loan facilities
 annual Increments

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CONCLUSION:

As we all know that state bank of Pakistan is a nonprofit making organization. Its main objective
is to manage or maintain the currency supply in country. There are so many departments in SBP.
There are many functions in SBP because SBP is the central bank of Pakistan that handles the
situation of all commercial bank. It is responsibility to SBP that sort out the problem of all
commercial bank and guide them so that the economy of Pakistan can be improved.

State bank of bank have excellent human resource management system for their employee’s for
their motivation and satisfaction. Best policies attract and retain the best employee’s. Human
resource management is the most pivotal element affecting an organization’s overall
performance. It is directly related to employee’s commitment with the organization and leading
organizations always use it as a tool to attract and retain the most talented human resource
capital.

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BIBLIOGRAPHY:

Search relevant data on the internet from the following sites:

http://www.sbp.org.pk/sbp_bsc/index.asp

https://www.scribd.com/doc/17560988/Functions-of-Human-Resource-Department-of-State-
Bank-of-Pakistan

http://pakistanstudents.blogspot.com/2008/11/report-mba-human-resource-management.html

http://content.wisestep.com/advantages-disadvantages-newspaper-recruitment/

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