HR Practices in

National Bank of
Pakistan
 Contents
•Introduction to National Bank of Pakistan

•Human Resource department at NBP

•Organizational chart of HR department

•Human Resource Planning and Forecasting

•Employee Recruitment & Selection

•Training and Development

•Performance management

•Employee compensation and benefits

 Introduction to National Bank of Pakistan
• NBP was established in 1949 under the National Bank of Pakistan
Ordinance and was owned by government at that time

• Acted as an agent of the central bank wherever the State Bank did not
have its own branch

• NBP got privatized in 2002 and now it is owned mutually by Abu Dhabi
based foreign consortium and Government of Pakistan

• It is the only bank in Pakistan's financial sector that caters for all
type of financial needs of the customers as well as the State

• It is the only Pakistani bank with multinational status

• NBP has 1200 local branches, 18 overseas branches along with

international banking ventures in Kazakhstan and UK

• NBP has 15000 employees worldwide

 Human Resource department at NBP
• At start there was no concept of manpower planning in NBP

• But after the privatization of NBP massive programme was launched

by new leadership to introduce a Culture Change in the organization

• Main purposes of this culture change process were:

1. Transformation of NBP from service organization to service/profit
earning entity
2. Introduction of technology based infrastructure eliminating old
manual ledgers
3. Induction of highly educated and professional employees in the bank
through all Pakistan open merit written examination conducted by
Pakistan Banking and Finance Services Commission

• For this purpose a separate Group has been created in the bank to
handle HR matters It is called Human Resource Management and
Administration Group and it is presently being headed by Dr. Mirza
Ibrar Baig.
HR Mission
– Provide more talented Human Resource in all NBP functional areas in
relation to competition

– Keep all the employees motivated and maintain total industrial

harmony

NBP Values
NBP believe that:

– People make the organization

– People collectively yield results
– People have ambitions and aspirations to be distinguished and
rewarded
– People form the human capital to be developed and invested in
 Organizational Chart of HR department

President

Dr. Mirza
Ibrar Baig SEVP /
HR Group

Coordinator Secretary

Institutional Industrial Personnel

Discipline Legal Affairs OD&T Wing
Relation Wing Administration
Wing

Recruitment & Staff Loans & Regional HR

HR Policies &
Selection Welfare Chiefs at RHQ
Project
levels
 Human Resource Planning and Forecasting

• HRP is the process of analyzing organization's human resource

needs in the light of organization's objectives, corporate and
business level strategies. It includes:

a. Developing plans, policies, and systems to satisfy HR needs

b. Setting human resource objectives and deciding how to meet them
c. Ensuring HR resource supply meets human resource demands
d. Comparing forecasts of demand and supply
e. Planning the actions needed to deal with anticipated shortage or
overages
f. Feeding back HR information into the strategic planning process

• NBP is employing about 100 young MBA's every year to meet its
present as well as future needs
 Human Resource Planning and
Forecasting (cont..)

HRP process at NBP

• Interfacing with strategic planning and scanning the

environment

• Taking an inventory of the company's current human

resources

• Forecasting demand for human resources

• Forecasting the supply of HR from within the organization

and in the external labor market
 Human Resource Planning and
Forecasting (cont..)

Methods of forecasting HR needs

1. Internal Supply Forecasting

Information

• Organizational features (e.g., staffing capabilities)

• Productivity - rates of productivity, productivity
changes
• Rates of promotion, demotion, transfer and turnover

2. External Supply Forecasting

Information
 Human Resource Planning and
Forecasting (cont..)
Factors Affecting HR Forecast and Planning

• Sales and production forecasts

• Effects of technological change on task needs

• Variations in the efficiency, productivity, flexibility of labor as a

result of training etc

• Changes in employment practices (e.g. use of subcontractors or

agency staffs etc)

• Variations, which respond to new legislation, e.g. payroll taxes or

their abolition, new health and safety requirements

• Changes in Government policies

• Factors affecting NBP’s portfolio for e.g. Competitors etc.

 Forecasting as a Part of Human
Resource Planning
Choose Human Resource SUPPLY
Programs FORECASTING
Determine
Organizational
Objectives

Internal Programs External Programs

 Promotion  Recruiting
 Transfer  External
 Career Selection
Demand
Planning  Executive
Forecast For
 Training Change
Each Objective
 Turnover
control

Aggregate Internal Supply Forecast External Supply Forecast

Demand
Forecast

Does
Supply Aggregate Supply Forecast
Meet
Demand?
NO

YES

Go Feasibility Analysis Steps

 Employee Recruitment & Selection

Recruitment of staff is preceded by:

1. Job analysis
2. In the case of replacement staff a critical questioning of the need
to recruit at all (replacement should rarely be an automatic process)
3. Use external expert consultants for recruitment and selection

4. Equally organization may seek help from 'head hunters', to recruit

executives
5. Recruitment and Selection should screen for suitability of applicants
as poor selection costs a lot even for the mundane day-to day jobs
6. NBP strictly follows merit policy for recruitment and selection of
employees in the bank
 NBP recruitment process

Recruitment &
Selection

Institute of
Advertising Bank Sources Bankers Pakistan

Evaluation Criteria

Background
Personality Test Interviews Checks
 Sources of Candidates
1. Internal Sources
HR Group Head Office Karachi
All the Groups in NBP
Regional HR Wings
Special products divisions

2. External Sources
1. Industry
2. Educational institutions
3. Institute of Bankers in Pakistan
 Employment selection process

• As per requirement of the bank, the HR group

circulates details of all the vacancies in all the
branches through Regional HR Departments

• Applications are screened of internal applicants and

suitable candidates are called for interview after
scrutiny
Employment selection process (cont…)

Advertisement in Media

Applications, CV’s from Prospective Candidates

Shortlisting at HR group, Head office Karachi

Call Letter for Written tests by IBP

Shortlisting and Call Letter for Interviews

Selection of Candidates from Interviews

Job Offer Letters , Orientation and Training of Successful Candidates

 Job Opportunities in NBP
1. Management Trainees

2. Professionals

3. MBA lady officers

4. Customers Facilitation Officers

5. Cash staff
 Training and Development

• Training is the systematic development of the attitude,

knowledge, skill pattern required by a person to perform a
given task or job adequately

• Development is 'the growth of an individual in terms of

ability, understanding and awareness'
 Need of Training and Development

1. Develop workers to undertake higher-grade tasks

2. Provide the conventional training of new and young workers

(e.g. as apprentices, clerks, etc.)

3. Raise efficiency and standards of performance

4. Meet legislative requirements (e.g. health and safety)

5. Inform people (induction training, pre-retirement courses,

etc.)

6. From time to time meet special needs arising from technical,

legislative, and knowledge need changes. Meeting these needs
is achieved via the 'training loop'
 Training Process
Training need assessment (TNA)
Keys factors affecting training needs assessment are:

Defining Gap: Between Current and Desired Performance

2. Structure of training needs: Whether Organizational Performance,

Individual behavior and performance or Overall competence needs to be
improved

3. Needs Level in an Organization:

a. Individual needs like knowledge, skills, attitude, performance etc
b. Group needs like teams, groups, needs of group as a whole
c. Organizational needs like environment, competitors, peers, etc

4. Quantitative/qualitative
a. Problem identification & analysis
b. Comparison/ bench marking
c. Expert opinion
 Employee development
• It is based on TNA of an employee

• Special training programs are arranged by Organizational

Development and Training Wing headed by Executive Vice
President Mr. Muhammad Hanif at NBP

• OD&T Wing formulates education and training programs for all

levels of employees from executives to lower management

• NBP has various Staff colleges across Pakistan for this purpose
 Types of Trainings at NBP
1. Know your customer & Anti Money Laundering (KYC, AML)
2. Basic Foreign Exchange
3. International Banking
4. Credit Risks and how to counter Risks
5. Frauds/ Forgeries detection and prevention
6. New Account Opening
7. Employees Communication Programme
8. MS Office courses
9. Management Courses
10. Annual Appraisal Formats
 Employment Training and Development
Methods
1. Work shop
2. Dialogue Sessions
3. Quiz Programs
4. Lectures by NBP resource persons or professionals from
other institutes
5. On job Training
6. Tours of Trainees to different offices
7. Seminars
8. On spot training by visits of resource persons to the
respective regions
 Performance management

• Necessary because it improves organizational performance via

improving individual performance

• It identify individual potential, what can be done to get better

results from individual skills

• Helps in Appraisals and Promotions

 Examples of Performance standards in
Category different departments
Standards

Business Targets for Deposits, Advances, Profits,

Business Volume, Import/Exports, New
Products
Operations Operational matters like Internal workings,
Complaints and complaints handling Staff
positioning , Customer care, Follow up of
procedure, Prudential Regulations , KYC,
AML
Compliance Audit, Audit category, Audit irregularities
and their rectification, Compliance of audit
manual, Compliance of procedures, SBP/
External audit
Credit Credit procedures, Credit formalities, Legal
issues, Export handling documents, FIM
creation, SBP Prudential Regulations

HR HR Issues, Training and Development,

Training needs assessment, Transfers &
postings, Disciplinary cases, Frauds/
forgeries handling, Industrial relations
 Performance reports
• NBP has was using old ACR system for employees evaluation until
2004 when Performance based Appraisal system was launched
by HRM in NBP

• According to this system employees are assigned SMART job

goals at the start of the year then mid year and final evaluation
is made at the end of the year on the basis of these set targets

• Further employee evaluation is done by his immediate boss

regarding his motivation and behavior, then employee report is
prepared with his consent to eliminate biasness

• These reports provide basis for employee appraisals, promotions

and training need assessment
 Employee compensation and benefits

• Gives motivation to employees, help retain good staff, and

encourage employees to give their best

• Employee compensation and benefit rules are decided by

government along with market mechanism

• Good Employment Benefits in NBP ensure minimum turnover

rate
 Employee compensation and
benefits (cont…)

Competitive Wage Policy

• At present, salary structure of NBP employees is much
better than its competitors. Besides basic pay, following
allowances are also paid to employees irrespective of their
grade or scale

• House Rent Allowance (50% of basic pay)

• Conveyance Allowance (minimum 90 liters of petrol to
clerical staff, 120 liter OG-III, 130 Liters OG-II, 140 to
OG-II, 240 TO AVP and so on.)

• Utility Bill Allowances

• Education Allowances
• Medical Allowances (for medicines)
• Maternity Allowances
 Employee compensation and
benefits (cont…)

Spot Cash Awards:

•They are awarded for extraordinary counter service or adopting

precautionary measures to prevent frauds/ forgeries

Special Cash Awards:

•Every year, best performers are awarded with cash awards

ranging from Rs. 100,000/-to Rs. 500,000/- depending on the
grade of the employee

•Mostly managers are benefited from this award to motivate them

for procuring more business
 Employee compensation and
benefits (cont…)

Annual Increase:
•Employees (AVP and above) get annual increase in their basic pays
depending on their performance, cost of living with increase rate
varying from 4% to 17%

•All other employees get their annual increase as per rate

announced by the Head Office irrespective of their performance

•However from the year 2009, concept of "Pay for Performance" is

implemented in NBP for all the officers and executives

•Loan Facilities

•Motor Cars for Branch Managers

•Promotions
 Employee Job Changes
Factors affecting the employee job changes
are:
Specialized Assignments
Specialized Work Force
Introduction of Special Products

Job changes within organization

Transfers: maximum period for an employee to stay at one

place is three years in NBP
Separations
Terminations
Resignations
Retirement
 Organizational career management
• It is based on the policies of the organization
keeping in view following factors:
1. Resources
2. New developments
3. New products
4. New policies
5. Motivation
6. Promotions
7. New employments
8. NBP always stresses the need for career management
due to its ongoing development and progress to meet
the requirement of competitive environment prevailing
in the banking sector
 Conclusion
• NBP is the employer of choice

• The whole NBP family comprises of committed and

dedicated members with passion to serve in their
respective functional areas

• The Bank has challenging work environment where

merit and performance help the individuals to explore
their true potential

• NBP is a caring employer which enables the employees

to excel and grow in highly congenial employment
conditions and culture