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MUSLIM COMMERCIAL BANK Ltd.

Management functions


Submitted To:
Mr. Salman Rasheed
Submitted BY:
M.Ahsan Nawaz 4169
Muhammad Awais 4154
Qurat-ul-Ain 4151
Aqsa Gohar 4193
Sana Rani 4163
Semester 3
rd
Evening A



Department of BBA Banking & Finance
GC University Faisalabad


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Serial no.

Table of Contents
Page no.
1. Executive Summary 3
2. Introduction 4
3. Planning Function 5
4. Vision & Mission 5
5. MCBs over All Strategy 6
6. SWOT Analysis 8
7. MCB organizing Function 10
8. Organogram 11
9. Work Specialization of MCB 13
10. Leading Function of MCB 14
11. Training &Devolvement 17
12. Financial and Nonfinancial Benefit 18
13. Conclusion


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Executive Summary:
In this report we are observing that how Muslim Commercial Bank works in Pakistan.
And focus on their Planning, Mission statement, goals, their chain of command, HRM
department, SWOT analysis and their Organogram.
Formal and informal planning, which strategy used to achieve their goal. Criteria of job
analysis, the rewards which are given to employees for motivation etc. In strategic
management employees can give their suggestions mean centralized method is use in MCB.
All component of mission statement use in MCB for achieving their stated goal. Spot award like,
certificates, trophies and cash is given to employees. Indoor tanning is use; High valued
customers are awarded by Colanders and diaries. We also discussed their competitive
strategies; in SWOT analysis discuss the strength and weaknesses of MCB. Discuss their Board
of director and other managers which are working in MCB.
In this project, we have almost discussed each part of the MCBs quality management
with Its customers. We discussed that how MCB made it easier for their customer to use their
ATM machines and also the cards which are easily specified with the customers perceived
decisions whether they will have the transactions directly or indirectly and these ATM machines
which are almost available in every corner in the main cities and as well as the rural areas of
Pakistan.
This project tells that how MCB bank uses its values to improve the quality of its
management and these are innovation, integrity, excellence and customer centricity these
values are noted and judged by the customer focus on the MCB qualities.
At last therefore, this is the summary of what we have done in this project and an
overall view of the MCBs quality management, which has been properly discussed in this
summary as well.




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Muslim Commercial Bank Ltd.


Introduction:
Before separation of Indo Pak, the need for Muslim Banks was felt. And Muslims having
strong financial capacity were thinking to invest in this sector as well. This was the idea which
provided the way for setting up MUSLIM COMMERCIAL BANK Ltd known as MCB.This was the
third Muslim Bank in the subcontinent.
This bank was incorporated under companies act 1913 on 9
th
July, 1947 (just before
partition) at Calcutta.
MCB soon earned the reputation of a solid and conservative financial institution
managed by expatriate executives. In 1974, MCB was nationalized along with all other private
sector banks. This led to deterioration in the quality of the Banks loan portfolio and service
quality, Then MCB became a private bank in 1991. During the last fifteen years, the Bank has
concentrated on growth through improving service quality, investment in technology and
people, utilizing its extensive branch network, developing a large and stable deposit base and
managing its non-performing loans via improved risk management processes.

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion.
Total assets of around Rs.300 billion. The Bank has a customer base of approximately 4 million.
Nationwide distribution network of over 1,000 branches .Over 450 ATMs in the market.




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Planning Function of MCB
MCB enjoys the unique position of being the Bank for Life because of its commitment to
excellence and its constant endeavor to make banking convenient for everybody. MCB shares
the element of convenience with water because not only is water the basis of life but also takes
on the form and shape of the vessel it is kept in. MCB too quenches the thirst for convenience
by taking on different forms according to the needs and requirements of the consumer.
MCB is the formal organization. Its planning are Written, specific, and long-term focus, involves
shared goals.

MCB VISION & MISSION Statement:
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.
All component of mission statement use in MCB









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MCBs Overall Strategy
MCB are idea generators for better business and management solutions to the wide
customer range in the country and abroad. They do not just wait for opportunities to appear;
they act on creating new ones. Customer centric strategy helps them in improving themselves
year to year. Retaining their customers enables them to materialize their targets into returns
that bring mutual benefits to all stakeholders and MCB. They are emphasizing on the right
marketing strategies and mix of products & services to compete. While continuing to meet and
exceed market expectations, MCB Bank Limited is committed on meticulous compliance with
regulations and building stronger layers of ethics and sustainability.
Business Strategy
MCB Bank structures its products / services in line with .The financial requirements of its
customers and MCB product development teams are constantly tapping the unbanked segment
of the population for their induction in the banking arena. Diversification in banking services is
crucial for proper identification and generation of relevant need-based solutions. This strategy
has helped them to serve their clientele without break for decades. Technology now goes hand
in hand in serving the massive 4.9 million customers of MCB Bank.
Financial Strategy
In times where recovery is slow and dynamics of the economy continue to play volatile
role, MCB Bank Limited has positioned itself to gain from every possible opportunity,
translating them in revenue streams. The strength depicted by the asset base is reflection of
the prudent and risk management strategies that would enable the Bank to achieve sustainable
financial growth.





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Competitive Strategy
After making the mix structure of basic elements of marketing the banks focus on
growth strategies.
Growth strategy is further divided in to four strategies:

Market Penetration Strategy
Market Development Strategy
Product Development Strategy
Diversification Strategy

1. Market Penetration Strategy
With the help of this strategy the bank management first consider either it could
gain more market share or not with its current products in their current markets.

2. Market Development Strategy:
In this it considers whether it can find or develop new markets for its current
products.

3. Product Development Strategy:
Then, it considers whether it can develop new products of impending interest to its
current markets





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SWOT Analysis of MCB
Internal Analysis
Strengths:
1. MCB is the first Pakistani privatized bank because of its quality management, marketing,
innovation in product and services is performing well in financial market.
2. It has created a good reputation in the banking sector.
3. It has 1200+ branches on different places in Pakistan.
4. It has one of the nations largest ATM network with more than 500 ATMs covering 110
cities across the country and it is still growing.
5. It provides MCB mobile ATM for convenient world class banking services.
Weaknesses:
1. Mismanagement of time is the biggest mistake in MCB branches that the official time of
bank closing is 5:30pm but the staffs is normally on their seats till 7:00pm to 9:00pm.
2. Due to the lack of advertisement majority of the people are not well aware about the
products of MCB.
3. Most of the staff and employees are dissatisfied due to low salaries as compared to same
position in other banks.
4. MCB has numbers of employees of the period when the MCB was nationalized bank they
cannot perform their duty as like employees in other banks. They always show rude
attitude that is not much motivating for new customer.
5. There is lack of skills and training of employees. MCB have to give attention to improve
the skills and abilities of the employees according to modern banking requirements.






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External Analysis
Opportunities:
1. MCB bank can capture big portion of the market by expanding their branches and ATM
network to other countries.
2. MCB has to launch some new product or services like tale bank and internet banking etc.
3. Media is powerful tool of communication. MCB have to use it for advertisement of new
product and severs provided by MCB bank. By adverting MCB can create more new
customers.
4. MCB bank has to start some kind of Social services or for culture benefit. By doing this it
can motivate its customer that you are contributing in this services by parching and
using MCB services.
5. Now the concept of Islamic banking is increasing in Pakistan. There is opportunities that
by creating Islamic branches all over the country and fallow Islamic structure in those
branches. It should also create Islamic product for customers
Threats:
1. In Pakistan the banking sector is growing rapidly and it has attracts the business men to enter
in banking sector. Some foreign banks have started their business in Pakistan. Now MCB
bank has to compete with great effort by giving superior services.
2. From few years Pakistan is facing a lot of problems like energy crisis, rising prices of
product. Govt. of Pakistan is borrowing money from State Bank of Pakistan and from
commercial banks also and due to lack of money to give to depositor many banks can cause
to bankrupt.
3. Foreign banks are increasing in Pakistan





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Organogram of MCB






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Board of Directors
Mian Mohammad Mansha (Non-Executive Director)
Chairman

S.M.Muneer (Non-Executive Director)
Vice Chairman

Tariq Rafi (Non-Executive Director)
Shahzad Saleem (Non-Executive Director)
Sarmad Amin (Non-Executive Director)
Mian Raza Mansha (Non-Executive Director)
Mian Umer Mansha (Non-Executive Director)
Aftab Ahmad Khan (Non-Executive Director)
Manzar Mushtaq (Non-Executive Director)
Ahmad Alman Aslam (Non-Executive Director)
Dato Seri Ismail Shahudin (Non-Executive Director)
Datuk Abdul Farid Bin Alias (Non-Executive Director)
Imran Maqbool (Executive Director)
President / CEO
Audit Committee
Tariq Rafi (Non-Executive n Director)
Chairman

Aftab Ahmad Khan (Non-Executive Director)


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Dato Seri Ismail Shahudin (Non-Executive Director)
Ahmad Alman Aslam (Non-Executive Director)

Work Specialization of MCB
Number of employees:
MCB bank since its incorporation has the more potential bank not only for
its customer but also for its employee. MCB bank offering great working
opportunities for all the people who are interested to do job in MCB.an d with
passage of time employee is increases and its business volume is increase because
MCB provide enhance career opportunities with dynamic work according to their
education and experience level currently .Employee are working in MCB including
contractual and permanent staff.
Total Numbers of employee = 9946

Staff of branch consists of 13 Members
Designation NO. of Employees
Branch manager 01 Grade i
Operational Manager 01 Grade i
Customer Service Officer 01
Cretid Manager 01 Grade iii
General Banking Officer 01 Grade iii
Cashier 01 Grade iii
Cash Officer 01
System Administration 01
Gun Man 02
Peons 02


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Leading Function of MCB

HUMAN RESOURSE MANAGEMENT PROCESS IN THE MUSLIM COMMERCIAL BANK.
Human resource planning and forecasting
Employee Recruitment and Selection
Training And Development
Performance Management
Employee Compensation And Benefits
Organizational Career Management
Human resource planning and forecasting
Determining the Objectives.
Defining skills required to meet the objectives.
Determine additional human resource requirements.
Develop actions to meet the anticipated HR needs.
Employee Selection and Recruitment
Human Resource Department has combined many selection techniques i.e. job
application form , employment test, interview, and physical examination.







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The step to step Recruitment process followed by organization is:

Identify Candidates:
MCB identifies its candidates by developing the criteria of job description and job
specification and acting upon these criteria job vacancy ads are spread through different
Medias like newspapers and internet
External Sources
Press Advertisement Educational Institutes
Placement Agencies Employment Exchanges
Unsolicited Applicants Employee Referrals / Recommendations


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Employment Selection Process:
Recruitment and selection in MCB has many processes and steps that must be followed.
Decide what positions to fill, through personal planning and forecasting
Build a pool of candidates for these jobs, by Recruiting internal or external
candidates.
Have candidates complete application form and perhaps undergo initial screening
Interviews.
Use selection tools like tests, background investigations, and physical exams to identify
viable candidates.
Decide who to make an offer to, by having the supervisor and perhaps others interview the
candidates
Screening and Short Listing:
Many candidates apply for job in response to vacancy ads by submitting
their CVs. Selection board goes through those CVs and selects those candidates which initially
fulfill criteria of selection board. After prescreening selection board short lists the candidates
who are considered most suitable for job at initial level on the basis of their resume
Test / Interview:
In this process short listed candidates are called for test and interview according to
nature of their applied jobs.
Selection Interview:
Selection interview is conducted for short listed candidates. A selection interview is the procedure
designed to predict future job performance on the basis of applicants oral responses to oral
inquiries.





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Formats Used In Selection Interview:
Structured/Directed
Unstructured/Non directed


Modes Of Interview :
Penal interview:
An interview in which a group of interviewers questions the applicant.
Structured sequential interview:
An interview in which the applicant is interviewed sequentially by several persons ; each rates the
applicant on a standard form.
Training And Development
Training is the organized procedure by which people learn knowledge and/or skills for a definite
purpose. MCB has a mix of training methodologies for its employees. We can broadly
categorize these methods into five groups:
On-the-job Training
Off-the-job Training
Apprenticeship Training
Informal learning
Effective lectures




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EMPLOYEE DEVELOPMENT
Employee development is a joint, on-going effort on the part of an employee and the organization
for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful
employee development requires a balance between an individual's career needs and goals and the
organization's need to get work done. Employee development programs make positive contributions to
organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's
group can accomplish more as employees gain in experience and knowledge
Performance Appraisal
MCB Pakistans performance appraisal system is based on a combination of 'MBO and 'Enabling
Traits' approaches, under which:60% weight age is given to performance goals discussed and laid out in
the beginning of the year.
Another 40% weight age is assigned to enabling personality factors, which are clarified to all
employees by their supervising officers at the start of each year.
Financial Benefits
Life Insurance
Disability Insurance
Medical Allowances
Pension Plans
Severance Pay
Conveyance Allowance
Bonuses
Profit Sharing


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Non-Financial Benefits
Sound Working Environment
Training And Development
Job Security
Pick And Drop Facility
Sick Leave/ Vacations
Flexible Work Arrangement
Flex Hours

Compensation And Benefits In MCB
MCB awards their employees a lucrative (attractive) compensation in return of their tough mental
labor. Apart from basic salaries they are offered many other benefits like:
Utility Allowance
Medical Allowance
Overtime Allowance
Education Allowance
House Rent Allowance
Bonuses


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Muslim commercial bank is a financial institution should provide security to their
customer confidential information and provide clear and accurate documentation.
The bank should focus to improve the quality of the service and should bring innovation.
The bank should have to increase its number of ATM service so that can increase its customer.
Should involve in social work and should gain the trust of the customer. All the policy of the
bank should be clear to the customer because if customer is unaware by any policy it may
become the cause to lost the customer, the employee of the bank should to be friendly with the
customer
. The bank should solve the problems of their customer quickly and should provide
helpline service. The procedure of the bank service should have to be simple and the
organization should advertise their services in TV channel in newspaper so the customer may
become aware. The bank has to display all its new services in its website.