CONTENTS

1. ORGANIZATION WHICH WE SELECTED.........................................................................3

2. BACKGROUND......................................................................................................................4
3. INTRODUCTION....................................................................................................................4
a. Branches...............................................................................................................................5
b. Board of Directors of NBP...................................................................................................6
c. Products of NBP...................................................................................................................7
4. STRUCTURE OF NBP............................................................................................................9
5. VISION..................................................................................................................................10
6. MISSION................................................................................................................................10
7. GOALS...................................................................................................................................10
8. OBJECTIVES........................................................................................................................11
9. TARGET MARKET..............................................................................................................11
10. PRINCIPLES OF MANAGEMENT......................................................................................11
a. Division of Work................................................................................................................11
b. Authority.............................................................................................................................12
c. Discipline............................................................................................................................12
d. Unity of command..............................................................................................................12
e. Unity of direction................................................................................................................12
f. Subordination of individual interests to the general interest..............................................12
g. Remuneration......................................................................................................................12
h. Centralization......................................................................................................................12
i. Scalar chain.........................................................................................................................13
j. Order...................................................................................................................................13
k. Stability of tenure of personnel...........................................................................................13
l. Initiative..............................................................................................................................13
11. ORGANIZATIONAL CULTURE.........................................................................................13
a. Omnipotent View of Management.....................................................................................13
Dimensions of Management..................................................................................................14
12. GLOBALIZATION................................................................................................................15

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13. SOCIAL RESPONSIBILITY.................................................................................................16
14. DECISION MAKING............................................................................................................16
a. Bounded Rationality Approach..........................................................................................16
b. Structured Problems............................................................................................................16
c. Programmed Decisions.......................................................................................................16
d. Certain conditions for making decisions............................................................................17
e. Directive style.....................................................................................................................17
15. SWOT ANALYSIS................................................................................................................17
a. Strengths.............................................................................................................................18
b. Weaknesses.........................................................................................................................19
c. Opportunities......................................................................................................................19
d. Threats................................................................................................................................19
16. PEST ANALYSIS..................................................................................................................20
a. Political...............................................................................................................................20
b. Economical.........................................................................................................................20
c. Social..................................................................................................................................20
17. COMPETITIVE STRATEGY...............................................................................................21
18. HRM AT NBP........................................................................................................................21
a. About HR Department........................................................................................................22
b. HR Practices at NBP...........................................................................................................22
19. IMPROVE ETHICAL BEHAVIOUR...................................................................................23
20. REFERENCES.......................................................................................................................24

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 1. ORGANIZATION WHICH WE SELECTED

Why we selected this organization

We select this organization because of some reasons that are following.
This is the large bank network in Pakistan.
Largest public sector bank.
Source of revenue generation for government.
It manages the state’s finances.
NBP is a big organization so it will add value to our profile and exposure that’s why we
select NBP.

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 2. BACKGROUND

National bank of Pakistan (NBP) was developed in 1949. It served as the central
regulatory bank of Pakistan till the time State Bank of Pakistan was established in 1949. National
bank of Pakistan is the complete government bank and it undertook government treasury
operations. The two major competitors of national bank of Pakistan are united bank limited
(UBL) and Habib bank limited (HBL). The first branch was open in I.I Chandigarh road Karachi.
And after, they made it the head office of the bank. (www.nbp.com.pk)

3. INTRODUCTION

National Bank of Pakistan (NBP) is the largest commercial bank operating in Pakistan.
NBP was established under the National Bank of Pakistan Ordinance 1949 in Pakistan the
headquarters of National Bank of Pakistan or NBP is in Karachi. The National Bank of Pakistan
is the foremost bank determined to set higher standards of achievement. It is the key business
partner for the Government of Pakistan with special emphasis on nurturing Pakistan's economic
growth through aggressive and impartial lending policies. The main functions of National bank
of Pakistan are to provide commercial banking and related services in Pakistan and abroad. It
also handles treasury transactions for the Government of Pakistan as an agent to State bank of
Pakistan. It has 1,224 branches in Pakistan and 18 abroad (including the Export Processing Zone
Branch Karachi). Under a trust deed, the Bank also provides services as trustee to National
Investment Trust (NIT), including supervision of securities on behalf of NIT. It has its head
office in Karachi.

According to the statistics of 2004, it has assets worth $9 billion. It offers a wide range of
services to its customers and recognizes the significance of efficient business delivery and
providing well-timed solutions. It also provides internet banking and moreover, they have
recently set up the Financial Institution Wing. The role of this wing is to effectively manage
NBP's exposure to foreign and domestic correspondence and to manage the financial aspect of
NBP's association with the correspondents to support trade, treasury and other key business
areas; thereby contributing to the Today, Pakistan may be a developing nation, but it is in no way

5
dependent on any other nation for the sustenance of its people or its economy and due credit
needs to be given to the National Bank of Pakistan. The focused initiative and vision have
enabled the nation to emerge victorious against all odds and usher in the 21st century with great
pride.

a. Branches
National Bank of Pakistan has built an extensive branch network with about1400
branches in Pakistan and operates in major business centers abroad. The Bank has representative
offices in Beijing, Tashkent, Chicago and Toronto. It has agency arrangements with more than
3000 correspondent banks worldwide. Its subsidiaries are Taurus Securities Ltd, NBP Exchange
Company Ltd, NBP Capital Ltd, NBP Moradabad Management Company Ltd, and CJSC Bank,
Almaty, Kazakhstan. The Bank's joint ventures are, United National Bank (UK), First
Investment Bank and NAFA, an Asset Management Company (a joint venture with NIB Bank &
Fullerton Fund Management of Singapore). A brief detail of the branches of National Bank of
Pakistan is given in the following table:

Domestic Branches Overseas Branches

 9 Regional Offices
 16 Overseas Branches
 1,189 Branches
 4 Representative Offices
 143 Online Branches
 1 Subsidiary
 4 Subsidiaries
 1 Joint Venture

6
 b. Board of Directors of NBP

Syed Ali Raza

(Chairman & President)

Mr. Tariq Kirmani Mrs. Haniya Shahid Naseem Ms. Nazrat Bashir

(Director) (Director) (Director)

Mr. Ekhlaq Ahmed

Secretary Board of Directors

7
 c. Products of NBP
National Bank of Pakistan (NBP) have achieved bank of the year Award-2001, 2002,
2004 & 2005 by the Banker. It has also achieved best foreign Exchange bank in Pakistan 2006
by Global Finance, Kissan Time Award 2006 (For its services in the Agriculture sector) and Best
bank in the Emerging Markets from Pakistan in 2006 by Global Finance. Some of the schemes
offered by the National Bank of Pakistan are as under:

Islamic Banking:

NBP offers Islamic banking and NBP's First Islamic Banking Branch started operations
in Karachi on December 15, 2006. At present 8 Islamic Banking branches are functional all over
Pakistan having Group office at Karachi.Mr. Shafiq Khan is appointed Group Chief of Islamic
Banking Group and Mufti Abdul Sattar Laghari is a Shariah Advisor.

Unprecedented Safety - Unprecedented Return

Premium Aamdani

Unprecedented Safety - Unprecedented Return

Premium Saver

President's Rozgar Scheme - Easy financing for self

employment
Karobar

Affordable, Flexible & Convenient home financing for all

Saibaan

8
 Take upto 20 Advance Salaries - Affordable Installations from
1 - 60 months
Advance Salary

One Card does it all - ATM plus Debit Card in one

Cash Card

Invest with Confidence - Marginal Finance Facility

Investor Advantage

Meet your need for ready cash against your idle gold jewelry
with no minimum limits
Cash n Gold

NBP KISAN Taqat

Kisan Taqat

NBP's affordable agricultural program offers you a wide range

of financing
Kisan Dost

NBP's Internet Based Home Remittence Service

Pak Remit

Personal Accident Insurance

Protection Shield

Student Loan Scheme

NBP also offers student loan for the education which was started in 2001-
2.Under the Scheme, financial assistance is provided by way of Interest Free Loans to the

9
meritorious students who have financial constraints for pursuing their studies in Scientific,
Technical and Professional education within Pakistan. (www.nbp.com.pk)

4. STRUCTURE OF NBP
In National Bank of Pakistan, the head is called “Chairman” or “President” of the Bank.
And after President there is Five Broad of Directors. National Bank of Pakistan has eleven
Groups which control the working of the Divisions, Wing, Department, Section and Regional of
the national bank of Pakistan. In NBP, “Department” is called “Wings”.

Chairman &
President

Board of
Directors
President’s
Secretariat

Secretary Board
of Directors

Corporate & Credit Audit & Compliance

Investment Management Inspection Group Group
Banking Group Group

HRM & Operation Group Commercial & Treasury

Administration Retail Banking Management
Group Group Group

Special Asset Overseas I.T. Group

Management Management
Group 10
Group
 National bank of Pakistan divided their task in to separate jobs. Basically national
Bank of Pakistan having different groups, and each group perform different task specialization in
their department. National Bank of Pakistan Categories their departments through their work
specialization. And NBP hire their employees also through work specialization. National Bank of
Pakistan is structurally divided into Groups and groups are also subdivided into Departments,
Wings, and Divisions. National Bank of Pakistan has different Department in the Group and each
department performing work, as their task assign. Department also subdivided into working
bases. National Bank of Pakistan is divided their group in to Functional bases department or
Wings. Through this employees were concentrate their working and they work efficiently and
effectively. (www.nbp.com.pk)

5. VISION

To be recognized as a leader and a brand synonymous with trust, highest standards of

service quality, international best practices and social responsibility.

6. MISSION
NBP will aspire to the values that make NBP truly the Nation’s Bank by:
 Institutionalizing a merit and performance culture
 Creating a distinctive brand identity by providing the highest standards of services
 Adopting the best international management practices
 Maximizing stakeholder’s value
 Discharging our responsibility as a good corporate citizen of Pakistan and in countries
where we operate

7. GOALS
To enhance profitability and maximization of NBP share through increasing leverage of
existing customer base and diversified range of products.

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 8. OBJECTIVES
Objectives are essential for organizational success because this start direction, aid in
evaluation, create synergy, reveal priorities, focus coordination and provide basis for effective
planning, motivating and controlling, activities.
According to official record the bank has the following objectives:
 To modernize the commercial banking operation.
 To improve the service for its customers.
 To expand the international financial operation.
 To spread the joint venture involving foreign investment, overseas Pakistanis, and local
businessmen.
 To increase the cooperation with the Middle Eastern banks and exchange company.

9. TARGET MARKET
The target market of NBP is both the Retail banking and the corporate banking. All the
salaried persons, house wives, retired people, labors and all those type of people who have an
average amount of savings are included in retail banking. Whereas the big business men and big
investors, financers, and those customers who take huge amounts of loans and fiancé are
included in corporate banking, simple all those customers which are included in corporate sector.
(Arshad Mehmood, Grade 1 officer, NBP, P.M. Sectt. Branch, Isamabad)

10. PRINCIPLES OF MANAGEMENT

a. Division of Work
At NBP there is a proper division of work. They have hired different people with
Different work specializations like

 Cashier

 Customer manager

 Officer

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  Manager

d. Authority
At NBP the authority is with is with the top level managers, with in the branch it is the
branch manager.

e. Discipline
The employees and manager of are much disciplined because they honor and respect the
rules and regulations.

f. Unity of command
This principle is seen in NBP because the employees receive orders from the branch
manager and he in turn gets it from the project manager.

g. Unity of direction
This principal is applied because the employees have only one direction i.e. profit
maximization through increased customer orientation.

h. Subordination of individual interests to the general

interest
The employees do subordinate their personal interests to the general interest that is they
follow and obey all the rules and do all the jobs they don’t want to or they are less willing to do
that.

i. Remuneration
Employees have fair and just salaries and wages that is the principle of remuneration is
observed.

j. Centralization
The employees cannot take decisions at their own regardless of how profitable they may
be. All the decisions are taken by the branch managers.

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 k. Scalar chain
It is the line of authority from the branch manager to low ranks.

l. Order
This principle is also prominent because this means that all the employees and things are
available at right time and right place whenever they are required.

m. Stability of tenure of personnel

This is also seen in the management because they always have alternatives available for
the filling of vacancies at the needed time.

n. Initiative
The initiative and innovations are the tasks of project manager. (www.nbp.com.pk)

11. ORGANIZATIONAL CULTURE

a. Omnipotent View of Management
In NBP there is an Omnipotent View of Management because while interviewing we
came to know that the branch managers are held responsible for all the operations and the results
of those actions within that particular branch.

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 Dimensions of Management

DIMENSIONS OF MANAGEMENT HIGH LOW

Team orientation

People orientation


Outcome orientation


Attention to detail


Innovation & risk taking



Stability


Aggresiveness


Team Orientation
The employees of NBP Center are more team oriented. They prefer working in groups
themselves besides they are encouraged to do so by the manger. The manager said that the
activities are interlinked with each other in a great deal so team work preferred.

People Orientation
While talking about the people orientation the manager told us that we have to deal with
two groups of people first are the employees and second are the customers.

Outcome Orientation
The culture of NBP is with minimal outcome orientation. Customer satisfaction their 1 st
priority so it is fewer outcomes oriented.

15
 Attention to detail
The factor of attention to detail is also maintained that is the employees are expected to
do the work with accuracy and precision.

Innovation and risk taking

The employees are not encouraged to innovate and take risks on their own behalf. If they
have some ideas they would have to share this idea with branch manager then he would present
the idea to the project manager and then there is a possibility of a change. So we can say that
innovation and risk taking of employees is less.

Stability
There is a greater stability as the rules and regulations are observed strictly and the
employees have to follow these. Besides the rules and commands have a proper direction that is
customer satisfaction.

Aggressiveness
Employees are more attracted toward team work and there is no competition among them
so aggressiveness is negligible in NBP, instead cooperation is dominant in their organizational
culture. (Tahir Ali, Branch Manager, NBP main branch, Jhelum)

12. GLOBALIZATION
National Bank of Pakistan is at the forefront of international banking in Pakistan, which
is proven by the fact that NBP has its branches in all of the major financial capitals of the world.
Additionally, we have recently set up the Financial Institution Wing, which is placed under the
Risk Management Group. The role of the Financial Institution Wing is: -
 To effectively manage NBP’s exposure to foreign and domestic correspondence
 Manage the monetary aspect of NBP’s relationship with the correspondents to
support trade, treasury and other key business areas, thereby contributing to the bank’s
profitability
 Generation of incremental trade-finance business and revenues.

16
(Ijaz Ahmed, Customer Service Manager, NBP Bilal town branch, Jhelum)

13. SOCIAL RESPONSIBILITY

The Bank has nurtured a strong commitment towards the community. The bank’s
sponsorship and participation in a variety of community activities are clear manifestation of
discharging our responsibility as a good corporate citizen of Pakistan. Our efforts are a reflection
of our commitment to our country and our responsibility to work for its welfare and
advancement. National bank of Pakistan (NBP) is also playing an active role for promoting
sports in the country and sponsored many events during the years. The main task of our Bank to
Awareness of the social responsibility and operate it, being a good citizen.
(Tahir Ali, Branch Manager, NBP main branch, Jhelum)

14. DECISION MAKING

a. Bounded Rationality Approach
According to the grade officer, managers are not authorized for making all the decisions
with respect to the organization, if any kind of decision is to be taken they are required to present
the matter in front of the project manager then ask for his approval and if the project manager
approves the proposal then manager can apply it to their branches. So we can conclude that
branch managers use bounded rationality approach for decision making purpose.

o. Structured Problems
At NBP, the environment is quite predictive and constant and there are minimal chances
of any change in the managerial environment as well so the managers at NBP normally interact
with structured problems.

p. Programmed Decisions
The problems generally faced by managers NBP are structures problems, means that
there goals are clear and the problem is very much familiar as the environment is very stable so

17
the decisions are very much repeating. Such type of decisions are programmed decisions, so we
conclude that managers at NBP make programmed Decisions.

q. Certain conditions for making decisions

As mentioned earlier the environment of Nokia Care is very much predictable and very
less changes are encountered by managers so normally the managers have Certain decision
making condition.

r. Directive style
Branch Managers at NBP are pretty much bounded and are not free for making decisions
on their own perspective and the environment is very much stable which means that there is low
tolerance for any ambiguity and decisions are generally based on facts and figures, So we
conclude that the decision making style of managers at NBP is Directive Style.
(Faiza Javed, Customer Service Manager, NBP main branch, Jhelum)

15. SWOT ANALYSIS

Before we move forward towards rebranding of NBP, we should know about our internal
as well as external positive and negative aspects. For such thing, we have done the SWOT
analysis which provided the information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it is operating. The following diagram
shows the process of SWOT analysis which is helpful for the organization to gain maximum
customer satisfaction and acceptance.

18
 a.

Strengths
NBP's strengths are its resources, capabilities and network that can be used as a basis for
developing a competitive advantage. Such strengths are as follow:
 Exclusive rights and patents of operating all the accounts of the government
organizations
 NBP has the strong brand name
 It’s the largest commercial bank operating in Pakistan
 Performing activities in some places as an agent to the State Bank of Pakistan
 It also has the largest branches network system in Pakistan
 It also has the largest customer base which makes it to step forward as compared to
other financial institutes
 Exclusive access to high grade market segment
 Favorable access to distribution network

19
  Plenty of resources are their to invest in different sectors
 Government backed financial institute
 Less chances of liquidity

s. Weaknesses
The absence of certain strengths may be viewed as weaknesses of NBP. Such weaknesses
are as follow:
 Poor reputation among customers
 Old and orthodox management practices.
 Delayed process
 Less interest in corporate and private sector
 Outdated technology
 Old brand image in customer mind
 Less competitive HRM

t. Opportunities
The external environmental factors may reveal certain new opportunities for profit and
growth of NBP and also help NBP to make their better image in front of customers. Such
opportunities are:
 Removal of international trade barriers can help NBP to expand worldwide
 NBP can capture a lot of foreign investors through its Government image
 By launching variety of products and services, NBP can satisfy unfulfilled customer
needs
 As Pakistan has the emerging Market, so it can grab a lot of private sector easily
 Can buy other banks to show its big brand image and increase customers
 On the basis of its largest network, it can target huge and diversify customers {markets}

u. Threats

The NBP is facing certain threats that are leading it to degrade its image in the customer’s
mind. Such threats are:

20
  Regional and private banks are the major threat for NBP in private and corporate sector
 Increased trade barriers may cause difficulties for NBP to operate worldwide
 In the presence of other private banks like HBL, Standard Chartered Bank, MCB and
others, NBP is facing a lot of tuff time to make it's image better in Private and corporate
sector.
(Tahir Ali, Branch Manager, NBP main branch, Jhelum)

16. PEST ANALYSIS

a. Political
Pakistan despite all international and public perceptions, today is a functioning
democracy and gradually there is a change in complexion and composition of legislatures with
more educated people and women (27% of National Assembly and 17% of Senate) entering into
politics. Similarly it helps in designing best strategies to implement that could support the revival
of bank industry. Like in the era of nationalization bank had to suffer as other industry that’s why
that impact is still found in the performance of this industry.

v. Economical
Although banking sector development is important at the early stage of economic
growth, general liberalization presuming a homogeneous bank role may not necessarily
promote growth. The estimated cost structure indicates that state-owned commercial banks
are large enough, while development financial institutions and private banks can expect to
obtain cost-saving advantages by expanding their operations. Since scope economies are
significant, portfolio diversification generally increases bank profits. In addition, privatized
banks are the most efficient, followed by foreign and private banks. Public banks are the least
efficient.

w.Social
Banks always helped people in improvement of living condition of poor people in
various forms like giving loans to poor for starting business or directly providing them the
instruments that could enhance their living conditions. Similarly National Bank always

21
tried to provide the needy people loans on soft terms and also helped to eradicate
unemployment by providing job opportunities Recent high growth trends coupled with
enhanced spending on social and 005/2006 has together begun to pay some dividends as
evident from the reversal in poverty incidence trends and social indicators. (Faiza Javed,
Customer Service Manager, NBP main branch, Jhelum)

17. COMPETITIVE STRATEGY

National bank has this strategy that it always gives priority to its customers; as compared to other
banks it has made it its motive that its foremost priority is its customer’s service. According to
their strategy it is the demand and need of customers which should me given priority and
importance, so that if they will get what they really want then definitely they will be satisfied and
prefer that bank over others. Another important thing which differentiates them is that, NBP
believes that making your existing customers loyal is very important, because it is really
the existence of your already existing customers that attracts new people to come and try,
like a famous saying that money attracts money so in the same way loyal customers attract new
customers. To achieve this motive, NBP has made it its policy to give its customers full
time and attention, to introduce them with new policies, through their employees, help line
number, pamphlets, magazines, and it is made the duty of its employees to deal with customers
in such a manner that they feel very safe, that they have got all the safety of their wealth, full
attention and interest by the bankers. (Raza Hameed, Customer Service Manager, NBP main
branch, Jhelum).

18. HRM AT NBP

As we know that among all the resources of any organization, human resource is the most
valuable asset. The factors shaping human resource development in science and technical fields
are essential for formulating effective strategic plans at the national, regional, and global levels.
Employees are the most valuable resources of an organization in the service sector (software,
banking, management consultancy, etc.). Like all other resources of a company, the human
resources are more valuable because of their value addition with the passage of time.

22
 "Human Resource Valuation means identifying and measuring value of human
resources and communicating the information to the interested parties."
In the Bank, there is a separate department for Human Resource Development (HRD).

a. About HR Department
This department meets up on monthly basis and performs the following functions:
 Ensures proper grading and analysis of job recruitment for the purpose of operational
efficiency.
 Develops an effective training program should suit the Bank’s requirement.
 Keeping in view the future requirements oversees career path development for all staff
members.
 Formulates a reasonable transfer/posting policy, which adequately suits the bank.
 Introduces effective mechanism for evaluating staff performance.
 Prepares promotion/incentive criteria based on performance thereby providing motivation
to the staff working in the bank.
 Accords Staff House Building Loans.

x. HR Practices at NBP
Job analysis
It is the primary function in HR, which you undertake. It is the analysis of the tasks /
activities involved, time taken to perform the tasks, importance of the tasks, responsibility
associated with the task, conditions under which it is performed, expertise required, equipments
to be used, etc. This would help the HRM, to determine:
a. Job Description
b. Job Specification
Recruitment
Selection
Developing compensation package
Training & development
Skills development programs
So Job Analysis is a fundamental for an effective HRM Programs.

23
Recruitment & Selection
The process of recruitment in National Bank of Pakistan consists of following steps:
Advertisement (Newspaper)
Scrutiny of application
Short listing
Issuance of call letter
Test
Listing on the basis of test
Call letters for interviews
Interviews-Panel Interviews
Final short listing
Offer letter
Joining
Training
Posting
(Shehzad Ali, Branch Manager, NBP, P.M. Sectt. Branch, Isamabad)

19. IMPROVE ETHICAL BEHAVIOUR

Measuring job satisfaction

Giving them a questionnaire
Performance recognition and evaluation
Reward system
Increase in communication
NBP also provides stress management program
(Arshad Mehmood, Grade 1 officer, NBP, P.M. Sectt. Branch, Isamabad)

24
 20. REFERENCES

 www.nbp.com.pk

 Arshad Mehmood, Grade 1 officer, NBP, P.M. Sectt. Branch, Isamabad.

 Tahir Ali, Branch Manager, NBP main branch, Jhelum

 Ijaz Ahmed, Customer Service Manager, NBP Bilal town branch, Jhelum

 Faiza Javed, Customer Service Manager, NBP main branch, Jhelum

 Raza Hameed, Customer Service Manager, NBP main branch, Jhelum

 Shehzad Ali, Branch Manager, NBP, P.M. Sectt. Branch, Isamabad

25