HRM Assignment

NATIONAL BANK OF PAKISTAN
NBP HRM to SHRM Transformation

Proposed Plan
Version 1.0
Information Technology Division

National Bank of Pakistan
Information Security Office-ITD
Table of Content
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Cybersecurity Framework V1.0 Confidential Page 2 of 34

1. Introduction
The World Economic Forum regards the threats to cybersecurity as one of the top five global risks
confronting nations of the world today. The vulnerabilities of financial loss ranging from cybersecurity
breaches to theft of intellectual property are a growing problem. Cyber threats are increasingly targeting
the core functions of the economies in nations throughout the world, as well as their governments on
local, regional, and national levels. The potential for cyber-attacks to disrupt critical services of both the
private enterprise and nongovernmental agencies is growing at an alarming rate.

National Bank of Pakistan
Vision
”To be recognized as a leader and a brand synonymous with trust, highest standards of service quality,
international best practices and social responsibility”
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 stake holder's value
• Discharging our responsibility as a good corporate citizen of Pakistan and in countries where
we operate”
Core Values
• Highest standards of Integrity
• Institutionalizing team work and performance culture
• Excellence in service
• Advancement of skills for tomorrow’s challenges
• Awareness of social and community responsibility
• Value creation for all stakeholders
Goals
To enhance profitability and maximization of NBP share through increasing leverage of existing
customer base and diversified range of products”
INTRODUCTION TO THE ORGANIZATION

Financial institutes play a major role in the development of the country. They are
commonly referred as the backbone of the country’s economy.
In Pakistan among other banks and financial institutes we have National Bank of Pakistan as a
major player that plays a main role in boosting the economy and providing thousands of jobs,
besides other important functions that it plays. This emerging Bank of Pakistan has the highest
number of customers and is awarded the best bank award as well as the 9th bank in the world and
1st in the Asia.
The NBP realized the importance of upgrading the quality of human resource to meet the challenge
of competition. It developed strategic focus to motivate the employees for higher performance and
maintaining industrial harmony. An internal survey was conducted to enable the bank employees
identify the top challenges being faced by the Bank. The employees, mostly field functionaries,
identified “TECHNOLOGY” and “SKILLED MANPOWER” as the top two challenges being
faced by the Bank in its internal operations. The challenge of lack of skilled manpower directly
reflected on the status of HR base of the Bank.
It is the major business partner for the Government of Pakistan with special emphasis on fostering
Pakistan's economic growth through aggressive and balanced lending policies, technological
oriented products and services offered through its large network of branches locally,
internationally and representative offices. The bank has a national presence with a history of
contribution to their communities. The bank meets expectations through providing market-based
solutions and products and rewarding entrepreneurial efforts and also creating value for all
stakeholders
HR Mission:
Provide more talented Human Resource in all NBP functional areas in relation to
competition keep motivated all the employees and maintain total industrial harmony.
Values:
NBP believes 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.
Point of Presence - Domestic /Overseas Branches:
National Bank has elaborated network of branches in the country. There are 29 regional
offices, 1,256 branches and 4 subsidiaries. It has 22 overseas branches in different countries of the
world. It is the only Pakistani bank to have representative offices in Canada, China, Uzbekistan
and Azerbaijan, 1 subsidiary and 1 joint venture with United National bank of England. National
Bank of Pakistan is the first international bank to establish a branch in Kabul.

The Organizational structure of NBP is given below:

The
HR group is composed of five main divisions. Hierarchy of HR department at NBP is:
HUMAN RESOURCE MANAGEMENT & ADMINISTRATION GROUP
Dr. Mirza Abrar Baig

Group Chief /SEVP
Moizuddin Khan Muhammad Hassan Khaskheli Mohammad Iqbal Qasim Muhammad Afsar
Qamar Hussain Muhammad Hanif Fazal-ur-Rehman
EVP/Divisional Head EVP/Divisional Head EVP/Divisional Head SVP / Wing Head
EVP / Divisional Head EVP / Coordinator EVP / HR Coordinator
Training & Organization Personnel & Industrial Sports, Culture & Corporate Recruitment, Outsourcing &
HR Division HR Special Projects
Development Division Relations Division Social Responsibility Division Regulations Wing
A brief description of the different wings is given below:
TRAINING & ORGANIZATIONAL DEVELOPMENT DIVISION
Like other organizations NBP also has focused on the training aspect for its employees. The
training & development department is headed by EVP who is divisional head for the T & D
division. Training & Development in the NBP is a function to contribute in improving the overall
organizational performance. It is the belief that T&D does not work since it is too difficult to
prove its effectiveness in terms of calculating the Return on Investment (ROI) of T&D programs.
With the huge investment in developing training strategies and programs, the question is no longer
whether organizations should train or not, but rather it is about whether or not training is
worthwhile and effective
PERSONAL & INDUSTRIAL RELATIONS DIVISION

The department s headed by EVP (Executive Vice President).Industrial Relations Wing has been
set up to help stabilize healthy industrial relations and to ensure that conflicts at all levels are
resolved in an amicable manner through bilateral discussions. The subsidiaries of the wing are also
expected to promote harmonious industrial relations in the Bank.
SPORTS, CULTURE & CSR DIVISION
Corporate Social Responsibility (CSR) is a significant concept in the arena of business across
Pakistan India as well as around the globe. It is becoming an important constituent of the
mainstream corporate agenda. The growing importance of CSR has rewritten the relationship of
business not just with shareholders, but also with other stakeholders including employees, supply
chain partners, government, creditors, customers and communities. Engaging in CSR is thus a
desired investment in the 21st century knowledge economy to further the development process for
a sustainable future. And sport is an important factor in this paradigm. Whilst pure sports
sponsorship is often a hard-nosed marketing and business decision, any CSR intervention is based
more on how a business can improve the communities in which it operates. In addition to being an
effective CSR medium, sport builds values that any socially-responsible business strives for and
instills qualities like team work and fair play. Moreover, it involves employees and suppliers, as
well as building good community relations. There are many examples of how businesses around
the world use sport to fulfill their CSR objectives.
The Bank has a separate Wing which is headed by a EVP and the wing has totally engaged in
aligning the activities of CSR,sports and cultural activities within the organization.
HR DIVISION
The goal of the HR division is to prepare professionals who work in the National Bank Of Pakistan
to deal with the complexities and challenges of HR and managing today's workforce. The division
is headed by EVP who is responsible to ensure that the latest HR tools are implemented within the
organization. His core responsibilities are to implement:
1. Specific HR functions include:

- Recruitment and selection in the banking system
- Employee development and Training
- Benefits and Compensation
- Employee Evaluation

2. Strategic HR Management
3. Managing Strategic Change
4. Conflict Resolution
5. Globalization and its impact on Human Resources management in NBP
6. Customer Services in the Banking System (CRM)
7. Synergetic Decision Making
8. Leadership as a key factor in Human Resources Development
9. Team work
RECRUITMENT, OUTSOURCING & REGULATIONS DIVISION
The division is headed by SVP / EVP. The division is mainly responsible for recruitment process
within the bank details of what are given in the following paragraphs. As for the regulations are
concerned the most common objectives are:
1. Prudential—to reduce the level of risk bank creditors are exposed to (i.e. to protect
depositors)
2. Systematic risk reduction—to reduce the risk of disruption resulting from adverse trading
conditions for NBP causing multiple or major failures
3. Avoid the risk used for criminal purposes, e.g. laundering the proceeds of crime
4. To protect banking confidentiality
5. Credit allocation—to direct credit to favored sectors
IMPORTANCE OF HR AT NATIONAL BANK OF

PAKISTAN
HR is a critical function for any organization’s survival. Since it’s the people who run the
organization and if they are not managed efficiently, the organizations are destined to be
doomed. HR is a strategic function that is deeply connected with the overall strategies of the
organization both long and short term.
The main HR department has the following wings / sub-departments:

 Institutional Disciplinary Wing
 Legal Affairs

 Industrial Relations Wing

 Personnel and Administration Wing
 Recruitment and Compensation Wing
 Staff loans and Welfare Wing
 HR Policies and Project Wing
 HRM (Main Function, Head Office)
These sub-functions are assigned particular duties and their names are based on the kind of duties
they perform. Each one of these has about 8 to 10 members whose job focuses on the particular
duties of the wing assigned to them. They work more like a team then as a function in the
organization. As the group HR chief is of the rank of SEVP (Senior Executive Vice President) and
the wings he (Group HR Chief) heads can be commanded / headed by gentlemen who can be from
VP (Vice Presidents) to EVP (Executive Vice Presidents).
Recruitment Process:
NBP has two procedures for selection. The first one involves external selection and the second
one involves internal selection process. For internal selection, the current workers are asked to
refer people they know for jobs/vacancies available. For external selection the bank asks IBP
(Institute of Banker’s of Pakistan) to select employees for the bank.
The bank places an advertisement in the News paper every year. The advertisement contains basic
information about the nature of the job and the criteria that applicants must meet in order to qualify
to be potential candidates. The criteria for example are to have a GPA above 3 on a 4 point scale
and to have a master’s degree in either Finance or MSC. If the applicants don’t meet these basic
criteria, they are rejected right away.
Then the bank conducts the initial screening. After which their CV’s are refereed to IBP for further
tests and interviews. IBP stands for Institute of Bankers of Pakistan. IBP is an agency formed by
different banks. The function of the IBP helps the bank for the selection of employees.
Selection Process:
The selection process at NBP involves various steps. Those candidates that have been referred to
IBP go through different tests and interviews. The candidates sent to IBP after initial scrutiny go
through written test at IBP. IBP short lists the candidates, those who pass the test. The written test
conducted at IBP consists of GMAT, GRE and questions related to management and mathematics,
to check the soft skills of the candidates.
Those candidates that are short listed after the written test at IBP, are invited for the group
discussion, this group discussion also takes place at IBP. In the group discussion candidates are
divided in the groups. In these groups, candidates are asked to perform different activities, which
include:

 Discussion on Topic: Candidate is given a topic, he/she has to speak on the topic. A group
of experts judge the communication skills and reasoning ability of the candidate.
 Interview: Panel of the experts conduct the interview of the candidate.
After the interview and group discussion, IBP further short list the candidates.
The list of the final candidates is sent to the NBP. NBP sends this list of candidates to the head
office, Karachi. Candidates are invited to the head office for the final selection. Head of all the
departments along with HR head conduct final interview of the candidates. At the final interview
the panel conducting interview focus on the personality traits of the candidate, and check whether
candidate has a presentable personality as he had been checked for the skills and abilities by the
IBP.
The candidates hired after this process are known as management trainees. They are OG3 (grade
3) officers. After selection these employees are trained by NBP.
CRITIQUE
Although NBP uses online application system for job placement for the management trainees and
has conducted job fairs at various business schools but there is not a routine practice for talent
hunt.
The selection process at NBP for the MTO’s (Management Trainee Officers) is based on written
tests and GD (Group Discussions). The written test and GD is designed to test their overall
intellectual capacity rather than their Banking knowledge. But the same procedure for hiring
experiences staff does not evolve the same testing procedure and also it does not include questions
to test their banking knowledge as well.
TRAINING AND DEVELOPMENT:

Training at NBP - Brief Overview:
Training has multiple advantages that an organization can have. Effective training will lead
to the organization having premium employees with enhanced skill sets, which will help the firm
to constantly adapt to changes in technology, regulation, and the business environment in general,
especially in the banking sector, where technology now plays a major role. It also ensures that
serious succession related issues do not creep up.
NBP has a strong belief in training its employees and developing them and it spends a huge amount
of money in this regard every year. Training is conducted for internal employees as well as
employees hired as management trainees. The management trainees selected are required to go
through different stages of the training, which are:

Initial training that lasts for about 3 months at IBP. This training is based on general banking
concepts and theories and is theoretical in nature.
Once this initial training at IBP is completed, trainees return back to the NBP head office and are
sent to the staff colleges of NBP. This training at Staff College lasts for about a month and a half
and is also theoretical in nature.
After they return from staff college employees are given placements in different branches of NBP.
Their practical and on the job training starts right after their initial placement. Employees are sent
to the different branches for on job training. During this training the manager of the respective
branch is directed by the management to rotate the new management trainees in the different
departments.
This initial post is commonly referred as management trainee. On the job training lasts for about
12 months. During this one-year training program on the job, employees are rotated in different
departments of the particular bank branch to get the basic knowledge and idea about operations in
each department.
Once this training is completed, they are appraised after one year and based on their performance
they are chosen as permanent employees of NBP. This post is called OG2. This is the first post the
management trainees get right after their training.
JOB EXPERIENCE:
Transfers:
After the completion of three years at a branch, employee is transferred to other branches. The
transfer process repeats after every 3 years. The purpose is to expose him to the various banking
operations at various branches of NBP.
Externships:
Employees at NBP are also sent to different organizations availing NBP’s services. For example
FIA. The duration for various employees sent to other organizations differs. Mostly the duration
last for 2 years, upon finishing they return back to NBP. NBP doesn’t allocate newly hired
employees any mentors to guide them. Employees can, however, contact their manager for any
problem faced at work.
Team Building:
NBP is changing its culture and focus is more on team building. Recently a foreign expert from
banking visited Pakistan and NBP employees were sent with him to the Northern Area of Pakistan.
It was not an official visit to Northern Areas infact its purpose was to develop relationship between
employees to work in teams.
Talent Pool:

All potential employees at NBP are given a chance for promotion. Every year a test is conducted
which potential employees have to clear in order to get promoted to a higher level. To appear in
the test, certain pre-requisites have to be met. For example, only those employees having MBA
degrees or MSC in Economics can appear for the test. The exam is very competitive. Out of 1500
employees appearing for test, only 163 are selected and promoted. The number of people appearing
for the test is called Talent Pool.
There are 2 categories of Talent Pool:

 NBP Talent Pool- General:
Successful candidates of this category are posted in any key area of Bank’s operation.
 NBP Talent Pool- IT:

Successful candidates of this category are posted in I.T related operations. All successful
candidates are entitled 10% increase in their basic salary.
There are 2 types of tests taken different level of employees:
For employees at Grade1 till Employees at Grade 3.All candidates between and at same grades are
required to take same test.
For promotions at higher level of hierarchy, candidates are given a different test.
This test is made for AVP’s and VP’s. Upon clearing the tests, employees are promoted to higher
level in the hierarchy. The process of succession planning and internal promotion is a great source
of motivation for employees.
CRITIQUE
The intranet can also be used for updating any HR news at the site SPECIALLY letting the
employees know about the upcoming training program, its timings, duration and nature of the
program so that right individual for the right training at a right point in time can be inducted
which apparently has not been observed there in NBP
Compensation and Benefits:

The trainees are given an attractive package. Their basic salary starts from 27000. They avail other
benefits such as interest free loans; employees are also sent abroad for training conducted in
foreign countries. There are a lot of chances for internal promotions, which motivates employees
into working hard to progress and achieve advancements.
For example, the OG2 officers have greater chances of getting promotion after 3 years and
becoming the branch managers; that is OG1. This culture of promoting employees internally
motivates and encourages NBP’s current employees to work hard and achieve their targets. This

is part of their internal promotion program, where the potential candidates go through the tests for
promotion. They are commonly referred as the Talent Pool.
The employees ‘pay package’ is revised every 2 years. The raise is about 10% to 15%, depending
on the inflation prevailing in the country. There is also an increase in the benefits provided to them.
MOTIVATIONAL TECHNIQUES
Human motives are based on needs consciously or sub-consciously filled in individualistic
hierarchical order. Generally motivation includes the entire class of drives, desires, needs and
wishes, all of which are different for different individuals and further differ in their importance
at various times for the same individual. Managing employee motivation is always an extremely
complex task.
To continuously enhance the level of performance of employees and attain the optimum level
for ensuring growth of the organization, it is the primary responsibility of all HR practitioners to
continuously maintain employee satisfaction and high motivation levels. The NBP utilized all HRM
tools for enhancing employees’ motivation thereby contributing to bank’s record growth. Some
of the steps NBP has taken to improve the motivational level of its employees so that they can
contribute best to the organization, are:
 With increase in Bank’s profitability, NBP shared this gain with employees through
raising their salary by almost 200% since 2002 and it is again going to be reviewed
effective 2010.
 For employee motivation, 99% of employees were promoted to higher grades.
Almost every employee has received either one or two promotions and in some
places three promotions. This step was taken to satisfy the genuine aspirations of
the employees which is unparalleled its uniqueness, unseen in the banking and other
industries in the country.
 Education, health, loan facilities, highest in the industry by:
 Introduction of various new benefits and extension of existing benefits to
the employees in the areas of medical and other allowances.
 Record increase in House Building and Car Loans in last two years.
 For Top Performers, Performance Bonuses to create high performance culture in
the Bank.
 To secure future of the Bank, hired 1000 MBAs on merit (300 being females 30%).
 Initiated Talent Hunt Program which enabled talented employees (about 500)
within the Bank to take up key positions and provided great encouragement by
opening new avenues for the existing employees based on merit for key internal
and overseas postings
 Improved Employee Communication through NBP Newsline, Management Brief,
President’s Dialogue Sessions, Employee Communication Program etc.

 Employment to the children of the retired and deceased employees.

 Regular increase in the pension of retired employees to give them a feeling that
NBP care for them even after their separation.
Promotions & Career Progression:
For employee motivation, 99% of employees were promoted to higher grades in the recent past.
Almost every employee has received either one or two promotions and in some places three
promotions. This step was taken to satisfy the genuine aspirations of the employees which is
unparalleled due to its uniqueness, unseen in the banking and other industries in the country.
Promotion of employees who perform well are made strictly on the basis of merit and in the most
transparent manner. Such promotions have been made a regular feature so that high performing
employees are rewarded and their efforts in the growth of the bank are recognized.
Employee Compensation:
Pay Packages 2004, 2006 and 2008 were negotiated and implemented to the complete
satisfaction of the employees and in the best interest of the Bank. This was a major
accomplishment in view of the highly charged intra-union and inter-union rivalries compounded
by the transition of HR responsibilities.
Liberal payouts of Profit Bonuses were adopted to provide a sense of participation amongst the
employees in achieving high profits. Besides the favorable packages, staff loans benefits have
been improved through enhanced financing limits and reduction in mark-up. Pensionary Benefits
were enhanced to retired employees or their widows to emphasize bank’s tradition of employee
care. To ensure compensation levels of bank employees in relations to the market, salary surveys
have been conducted and salary adjustments are being made wherever required.
Bank’s internal customers:
In order to provide maximum satisfaction to internal customers, which is vital for motivation and
innovation, each employee of HR has been given specific responsibility with agreed upon
standard time for each activity. The performance of the individual HR employee is then
continuously monitored for the actual time taken for each activity against the standard set, to
measure the HR performance. This quantification and measurement of each HR activity has
resulted in substantial improvement in internal efficiency thereby contributing to employee
satisfaction and motivation.

Achievement & Spot Awards:
A merit based culture has been established in the Bank through implementation of achievement
and spot awards for individual employees showing exemplary performance during the year or in
an assigned task. The achievement award policy of the Bank is a transparent system for rewarding
high performing employees through achievement awards to 10% of the total employee strength
every year. The policy of spot award is basically for recognizing individual employees for their
one-off excellent performance.
Performance Appraisal System & Pay-for-Performance:
Performance Appraisal System has been revised to replace the traditional subjective ACR to
provide more objectivity in evaluation and recognizing merit. This system has been implemented
with effect from January 2007 for all executives and contractual employees. Based on the
evaluation of individual employees as per their performance appraisal a system of pay for
performance is being implemented to properly compensate relatively high performing
employees thereby strengthening the merit based culture.
Employee Communication: Communication channels within an organization play a very

important role in involving the employees to participate in the implementation of policies.
Through involvement in the implementation process, employees feel motivated to perform and
establish their contribution in the overall growth of the organization. With a view to establish
top-down and bottom-up communication, Dialogue Sessions with field functionaries of high
value branches with the President have been held and constructive suggestions incorporated.
Further to make the employee communication more effective regular publication of NBP
NEWSLINE on quarterly basis and MANAGEMENT BRIEF on monthly has been introduced.
Leadership Development:
After reorganization of the bank’s field structure and decentralization of powers, Regional
Management Teams (RMT) were formed at all 29 Regional Offices. These leadership positions
were filled through a systematic selection of RMT Members on merit in a most transparent
manner and after qualifying a rigorous selection process involving written test, group discussion
and interviews. The empowerment of Regional Management Teams and Managers of branches
through enhanced discretionary powers for prompt decision making and assumption of higher
responsibilities has motivated them to ensure high performance levels. Further the Bank intends
to launch a “NBP Management & Leadership Development Scheme” for internally skilled and
qualified employees of the bank for placement in middle and higher management level positions
in future.

Industrial Harmony
The implementation of all HR policies depends to a great extent on continuously maintaining

industrial harmony within the organization. This has to be ensured through developing a mutual
respect between the management and employee representatives. Mutual respect between
Management and the CBAs as well as Officers representatives at NBP has been strengthened
through trust building measures. These trust building measures included maintaining a
continuous dialogue process with CBAs and Officers representatives.
Industrial Relations Conferences were held to build better understanding of IROs and
Management Policies to ensure continuing harmonious environment. In future Industrial
Relations Conferences are also under review. Additionally Employee Communication Program
involving meetings at Regional Offices for Staff are planned to create better awareness of
management policies and bank’s tradition of employee care.
Performance information Source:
The immediate boss (The Manager) writes this report every year when performance appraisals are
due. The manager is chosen because he has all the information about the nature of the job and the
employee performing the job. The manager does not consult his peers or the employees for
information on employee’s performance. This report is submitted on 31st Dec every year. The
written documentation is forwarded to senior managers for promotions and pay-raise. Based on
these documentations, managers decide their employee’s professional fate. This system however
has greater chances of biasness and favoritism and for this reason NBP is planning to introduce
the Bell Curve Method for employee’s evaluation.
The employees have their own intranet, which is only used to emailing purpose. The intranet
however lacks other information which employees should have access to.
Conflicts and its Resolutions:
Conflicts lead to a non-conducive and unfriendly environment. They should be avoided at all
levels, and if they do take place, there should be a quick remedy for it.
At NBP, there are no formal committees or teams made to resolve such issues. Conflicts do take
place, but these issues are not dealt with a formal procedure. When there is a conflict between
managers or a manager and his subordinate, the parties to the conflict try to resolve the issue at
their own level, without involving higher authorities. If the issue isn’t resolved at this level, branch
manager is involved. If the branch manager is also unable to solve their issue, then the problem is
taken to the head office, which tries to resolve the issue. In most of the cases, one of the employee
is transferred to other branch to minimize the contact with his previous manager.
Warnings and Termination:

In case there is any disciplinary issue, first an informal and then a formal warning is given to the
employee e.g. if there is a case of late comer, a red cross is made against the name of that employee
on the attendance register. Two such warnings are given to the employee. At the third time, an
official warning is sent to the regional officer and the employee. A memo is sent to the employee
asking for an explanation.
Progressive Discipline Program:
Employees of National Bank of Pakistan are expected to take a positive, responsible approach to
maintaining high standards of conduct and work performance. It is generally recognized that
special trust is placed by the general public in a financial institution; therefore the employees must
observe their duty in the correct manner. Failing to do will, however, result in some kind of
disciplinary action taken against the employee. Following is a list of serious offenses requiring
disciplinary action up to and including dismissal:
 Insubordination.
 Unexcused absences.
 Disregard for or violation of bank policies and/or procedures.
 Lewd or discourteous behavior or any other conduct which injures the public reputation of
the bank.
 Adverse attitude toward the bank, customers, fellow employees, or bank policies.
 Refusal to obey a legitimate direct order from a supervisor.
 Intentional falsifying of records.
 Conviction of a crime.
 Accepting of bribes, "kickbacks'', or otherwise improperly using one's bank position for
personal gain.
 Disclosure of confidential information.
 Willful violation of bank policies and/or procedures.
 Deliberate misuse or mishandling of moneys, securities, records, files, or documents of the
bank.
 Intoxicated on the job.
 Use of drugs or "high" on drugs while on the job.
 Using these criteria, management can take action against the employee if he has been
involved in any of the above.
The process of progressive discipline program starts with an oral warning. For example when the
employee comes late to work, he is given an oral warning. Upon repeating the same behaviors, the
manager puts a red line under his name in the office maintained register. If the employee continues
to be late for work, the manager adds another red line to his name. After 3 red lines have been
added to his name, he is issued a written warning. A copy of the written warning is sent to head
office also. If the employee continues to be late for work, he is issued a memorandum. Again the
copy of memorandum is also sent to head office. And an inquiry is initiated to find out what
problems do the employee has due to which he can’t observe the rules set by the organization.
Leaves:
Privilege Leave (PL) 30 days per annum:
Thirty (30) days Privilege Leave per annum is allowed to Executives / Officers and PL to be
availed within a year on becoming due. The maximum relaxation of 90 days is allowed to avail
the leave in the following years.
Casual Leave (CL) 20 days per annum:
Twenty (20) days Casual Leave is allowed to Executives/ Officers per annum and un-availed
Casual Leave up to a maximum of 15 days is allowed to be encashed, to OG-I, II & III at the end
of the year.
Sick Leave (SL) 18 days per annum.
Eighteen (18) days sick leave is allowed to Executives/ Officers and Un-availed Sick Leave
accumulates and becomes part of the Leave balance.
Special Leave (for Female employees):
On the death of her husband, a female employee may be granted Special Leave on full pay, when
applied for a period not exceeding 130 days. Such leave shall not be debited to her Leave account.
The Leave shall commence from the date of death of husband of the employee and for this purpose,
along with her application for special leave, or if that is not possible, the said certificate may be
furnished to the leave sanctioning authority separately.
Maternity Leave:
A Female employee may be granted maternity leave on full pay, outside the leave account, to the
extent of ninety days in all from the date of its commencement, or forty-five days from the date of
confinement, whichever is earlier
Maternity leave may not be granted for more than three times in the entire service of a Female
employee. For confinements beyond the third one, the Female employee would have to take leave
from her normal leave account.
EVALUATION
As the role of HR is changing in the organizations, NBP top management has also introduced
major changes in the HR department. The analysis of the HR practices at NBP is given below:
HR role in the strategy formulation:
NBP HR department has been working for many years but it was only involved in the routine
administrative tasks. The top management never considered taking opinions from the HR
department. Ever since the changes have been introduced, the HR department has gained
significant importance. The meetings held at head office has directors representing every
department,(including HR).

Since the company has recently introduced many different products, the HR department suggested
that new employees need to be hired and the current employees need product training and also
training for new systems introduced in the company, for example SWIFT system (Society for
Worldwide Inter bank Financial Telecommunication) that facilitates speedy services in the area
of home remittances.
The system has built-in features of computerized test keys, which eliminates the manual
application of tests that often cause delay in the payment of home remittances. The HR director
emphasized that employees need training to run the system, thus the training sessions were
introduced for employees to enhance their computer skills.
As mentioned in the findings, the company needs more employees to meet the requirement of the
2010 plan. Again the HR department’s input was being considered.
These evidences show that the director HR department’s opinion is now being considered and
valued. This signifies that the company has an integrative linkage between the top management
and HR department.
Labor Forecasting:
There is no such mechanism used by NBP for the forecasting of the labor surplus or the shortages.
NBP hire new employees according to their future strategy. Their current strategy is to increase its
branches worldwide and to increase its product line. Thus they have expansion as target. NBP hire
every year new employees, and would hire till 2010 according to the target.
If labor surplus occurs in the NBP, as in the mid nineties NBP was given directive by IMF to
reduce its employee. NBP offered early retirement program to its employee. NBP employees were
offered golden handshake offer. This offer was not forced to certain employee; it was an option
for employee to avail. The employees feel job security at NBP, as no one was terminated by force.
NBP also hire temporary employees on the contract bases. These employees are known as
contractual employees. These employees get the same benefits as the permanent employees.
NBP reduced its total number of branches in 2002; this was done because the management realized
that there were some excessive staff in the bank. The total number of employees were also reduced
due to the closing of some branches. In 2003, 2004 the bank increased the number of branches and
new employees were also hired. This was a wrong forecasting done by the HR management
because later they re-started the branches that they had closed.
Evaluation of Training Programs:
The training methods are evaluated on cognitive outcomes.. Thus NBP check that whether
employees have retained what they learned during training and employees are also given forms to
evaluate training forms. The form used to evaluate the training program is quite comprehensive. It
properly evaluates the training program, the extent to which the subject taught has been covered,
the methods used to provide training, general administrative arrangements, its content, and its
execution.

The course evaluation form is very general. It only mentions subject studies, course duration and
the instructor's name. This form doesn't help evaluate the course taught properly. It doesn't ask for
any comment on the courses offered; for example whether or not the courses taught were relevant
to their job. These forms evaluate are used to take feedback of the employees as whether training
program as of worth for them or not. But there is no such formal method used by NBP to evaluate
the performance of the employee after training.
Development of Employees at NBP:
NBP focuses on development activities of the employee. NBP uses different techniques for the
development of employees. The basic technique used is through job experience. The employees
are rotated, and transferred to different departments and regions of the NBP in order to develop
them for future. NBP also send its employees on for temporary assignments to other organizations.
Thus NBP uses externship as development, as in the case of FIA mentioned in the findings.
Succession Planning:
The practice of succession planning at NBP is not done in that sense as it should.Although the
talent pool at the NBP is part of succession planning but keeping in view the pros and cons of the
succession planning ,this gets jeopardized at NBP.
The development program such as talent pool is very effective for the NBP. The employee at NBP
are very much motivated by the introduction of this plan, as each and every employee gets an
opportunity to get promoted if qualified. The organization (NBP) is benefiting by the program as
it helps NBP to identify talented employees within the organizations. But some of the employees
think that the selection for the talent pool is not completely done on merit basis. This is a drawback
for the NBP, as it might hinder to spot the right talent. NBP doesn’t allocate mentors to the newly
hired employees. Employees refer to their manager for problems they face on the job.
Performance Evaluation at NBP:
The evaluation of the employees is done on the attribute approach. NBP has its own annual
confidential report (ACR). This report resemble with graphic rating scale. The employee is rated
on the different traits.
For performance evaluation, the source of information is solely managers. The manager in the end
of the year has to Annual Confidential Report. This has a greater potential for biasness since
managers can favor or penalize an individual unduly. (There is no other authority that keeps a
check on manager, again manager has all the liberty to write what ever he pleases for the employees
he is evaluating.)
Some of the employee refer ACR as ATR (Annual Torture report), this shows that employee do
not trust evaluation method. They think that it depend solely on the respective manger who write
ACR rather then on performance. Thus reliability and validity of this report is very low. The
congruence between the report an the strategy is also low.

Compensation and Benefits:
NBP management pay a decent pay scale for the OG3 (new employees, i.e. Rs.27,000). The
organization has internal promotion programs. There are very few hires from outside the
organization. The employees are promoted after 2-3 years based on the performance. Thus
employees are satisfied that there are ample chances of promotion at NBP.
The compensation process of the NBP is based on the performance. NBP give benefits in the form
of cash to the best employee of the years. NBP also share profit among the employee on a yearly
basis. By doing this, the management wants the employees to consider themselves to be a part of
the team. Every year a specific amount of profit is shared among all the employees. This profit at
maximum consists of 1 basic salary. Employees are also motivated by benefits, if an employees
increase his/her skill (higher education.).Thus NBP has very good system of benefits for the
employees.
Pay System:
The basic salary of each employee is increased every year. This increase ranges from10- 20%.As
far as the salary package is concerned; it is revised after every 2 or 3 years. NBP has a policy that
if the clerical level staff gets an MBA degree or a special banking exam, they get a specific increase
in their pay and are given monetary assistance too. At the managerial level this practice is not
being followed. It is important that the people at higher level should also be given some monetary
assistance or increase in pay after they attend a training course.
Termination Process at NBP:
The termination of the employee at the NBP is done through progressive discipline program. The
employee is given unofficial warning for the first offence as mentioned in the findings part. If
employee repeats the offence then he/she is given official warning. Second official warning is
given on the third offence and the copy is sent to the head office as well. If the employee does not
change behavior after these official warnings then the inquiry is initiated. Employee is given
chance to appear and explain his/her point of view. If NBP takes decision to terminate an
employee, though it is a rare case, that employee has right to appeal against decision.
The employees of the NBP think that it is not easy for the management to terminate an employee
for two reasons. Firstly it is a lengthy process. Secondly employee has full right to challenge the
decision. This has both positive and negative aspects. It is positive in a sense that employee feel
job security. But it is negative as termination is not that easy, an employee might not change his/her
behavior as required by the organization.
Intranet:
The intranet used at NBP is only for email purpose. The company has not fully developed an
EHRIS (Electronic Human Resource Information System) This system helps to keep employees
updated about their personal profile and the current activities at the company as a whole. The
inefficient system of snail mail still prevails at the company to inform employees of the various
occasions and activities being held in the company. NBP is planning to launch an EHRIS system,
it would be better that this system is launched as soon as possible.

Conflict Resolution at NBP:
NBP’s management uses open policy for the conflict resolution, as if a conflict arises between two
employees, their immediate boss or another peer try to resolve conflict among those employees.
But there are no teams or any formal conflict resolution techniques used for this purpose. The
conflict some times prolong for quite some time, which leads to loss of productivity till the time
conflict has been resolved.

CASE ANALYSIS
After having analyzed the HRM practices at NBP in detail, I would like to compare the same with
international best model – World Bank. NBP as we all know is the only public sector bank.
International Best practices are in Private Banks, public sector do not think HR is important for
them. They do not believe in empowering people, there is no pay for performance, annual
increments are given but having seen the progress NBP over last decade,we can compare its HR
to any financial sector organization around the globe and that is the reason I have chosen WB for
the purpose.
As we know that in NBP the sources of profit are not aggressive banking operations but the high
growth rate in GDP from 2002 to 2007 and the subsequent increase in revenue are the major source
of profit. It cannot be compared with MCB or HBL. After privatization these banks have been
transformed as efficient organizations.
Strategic HR
HR mission
“Provide more talented Human Resource in all NBP functional areas in relation to competition
keep motivated all the employees and maintain total industrial harmony”
HR Values
We 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
Existing HR:
 Increase the skills of the existing employees

 New recruitment and hiring in the organization
HRM systems consist of following activities:
 Recruitment & Selection
 Training & development
 Compensation & benefits
HR Planning and Forecasting:
Determine the organizational goals
Scan the organizational environment

Set strategic goals
Formulate the strategic plan
Course of action is designed
Steps of planning process in NBP
Determine the objectives
Define required skills to meet the objectives
Determined additional human resource requirement
Develop action to meet the anticipated human resource needs
Forecasting:
Zero Barrier Forecasting
Bottom-Up Approach
Use of Mathematical Model
Simulation

TABLE
Induction Plan
Agriculture field officers (AFO`s)
Customer facilitation officers (CFO`s)
Management trainee officers (MTO`s)
Cash officers (co`s)
Relationship Managers (RM)
(Competitive examination through SBP/Ibp)
Employee’s Recuitment & Selection
TABLE
Recruitment Plan
TABLE
Training and development
NBP has development group called “organizational development and training group “
Four staff colleges are operating under this group in Lahore, Karachi, Islamabad and Peshawar
The training is mostly carried through seminars, work shops and mostly on the job training
At the time of the introduction of the employee he is given the initial training in Institute of Bankers of
Pakistan (IBP).After that they are posted to their respective jobs.

•National Bank of Pakistan follows two forms of trainings
First is related to the training and development of new and midlevel employees
Second is the training for long terms plans, regarding the career development of higher level
employees
•NBP applies on-job and off-job strategies to train its employees
•NBP training and development academy advices job rotation to ensure and facilitate the production of
all- rounder employees.
•Training program started at least two month before the commencement of the New Year, in order to
make it easy for the socializing and orientation of the new employees.
•NBP believes in pre/posttests for the existing employees and post training test for the new employees
TABLE
Training Calender
Training cataloge
Tarinning course module / schedule
Outcomming (Need Based)
Feedback analysis
Quiz competitions
Short, Medium, Long terms workshops, seminars, courses
Data Reporting
Performance Management
Performance management factor there are certain aspects about which Nation Bank takes special care,
these are:
Professional Knowledge
Improving corporate culture

Decision making ability
Ability to visualize and plan
Ability to act in emergent situation
Ability to implement decisions
Ability to guide and create team work
Communication skills
Customer relationship
Acquaintance with technological improvement
Performance Evaluation:
An employee do not has any right and access to the Annual Confidential Report (ACR). But he or she
informed, so that he or she can rectify/improve his or her shortcoming if any
After ACR paper work, it is enter into data base by HR
On the basis of the evaluation, benefits are offered in term of promotion, reward etc.
TABLE
Health and Saf ety
A different type of compensations includes:
Medical Insurance
Sick Leave
Vacations
Provident and Pension Funds

Promotions
Overtime pay
Profit sharing

Travel/Meal/ Housing Allowances
House and car loans
Yearly 3 bonuses
Performance award in cash
Labour Management Relations:
The society of labor is formed within NBP, which functions with the help of management, so
form a good relation and provides:
Immediate relief to any accidental causality
Some benefits to on job decreased
Arranges variety shows for the families of the employees
Arrange educational funds or benefits for the employees
TABLE
SWOT Analysis of NBPSTRENGTH:
Nationalized Bank
Largest Branch Network
Strongest Capital Structure
Monopolistic Hold
Public Confidence
Experience of Operation
Easy access to the customers
Weakness:
Poor performance of the workers
Untrained staff and week customer handling
Favoritism and Nepotism
Lack of coordination
Unpleasant working environment

Traditional Approach
Lack of IT infrastructure & less No of Online Branches
Burden of running extra number of branches
Opportunities:
Electronic Banking
Leasing Business
Network in foreign Countries
Gain Economies of Scale
Threats:
Globalization
Increase in competition
Privatization
Political instability in the country
Lack of inconsistency in Government’s policies
Challenges faced by HR Manager
Working with people of different cultures
Managing workforce diversity
Helping employees balanced work life conflict
Up gradation of employees according to the environment
Cost cutting
Employee’s job Requirement
Management Trainees for General Banking, Corporate &Investment Banking, Credit, Risk
Management, Compliance, Commercial & Retail Banking and Treasury Management

MBA or equivalent degree (Finance/General Management/Marketing Banking).
Management Trainees for HR
MBA/MPA or equivalent degree in Human Resource Management.
GPA Requirements:-Minimum GPA.3.0 out of 4 or 3.7 out of 5.0 where GPA system is applicable,
where GPA system is not in practice candidates must have secured a minimum of 70% aggregate
marks in the examination. Only those who have already received final results are eligible to
apply(Executive MBAs are ineligible).
Age Limit:-Maximum age limit 26 years as on 31.07.2009
Compensation:-Management Trainees will be appointed as Officer Grade-Ilin regular

cadre and will receive a gross compensation of around Rs.30,000I-per month plus bonuses,
liberal perks and end service benefits.
Training & Development:- They will receive comprehensive training in banking and
management to groom them as professional bankers.
Career Growth:-Management Trainees on completion of three years will be promoted

as Officer Grade-I and in next three years as Assistant Vice-president on the basis of their
performance.
Selection Process:-Candidate will be required to appear for written test on the pattern
of GMAT/GRE. Successful applicants will participate in group discussion and final interview.
Career opportunity in NBP
NBP maintains its position as Pakistan's Premier Bank with a network of over 1200
branches locally, 18 overseas branches, 1 Subsidiary at Almaty (Kazakhstan) and 11
Representative Offices all over the world
NBP also have a Joint Venture with UBL at U.K., with the name of Pakistan International
Bank (UK) Ltd., with seven branches at Main Branch, London.
Manchester Branch, Glasgow Branch, Bradford Branch, Sheffield Branch, Birmingham

Branch and Knightsbridge Branch (London). The Bank has employed more than 15,000 people
world wide. The various departments include:
Consumer Banking – Corporate Finance – Investment Banking –Agricultural Banking –

Transactional Banking – Operations – Software Development and Automation – Financial

Control – Treasury – Internal Audit Risk Management & Credit – Economic & Business research –
Training &Development – Strategic Planning – Human Resources.
NBP offers unlimited opportunities to its employees for continuous personal and
professional growth:
1) Change Management Program: NBP has started an ambitious Change Management

Program to further train its employees to meet the challenges of present day requirements.
2) Training of new staff: Training and development are the core issues of HR, which will
ultimately improve our customer service and help us attain the standard of a progressive bank.
3)Benefits: Besides a competitive financial package, we offer excellent working

conditions, job satisfaction, superior leadership, and conductive environment for growth.
Recommendation
Employees should be involved in decisions affecting them
Promotion and reward system should be fair
Introducing new and efficient products
Total quality approach should be used
Training should be according to assessed needs.
Creation of enhanced performance appraisal system
Job rotation and job enrichment for employees
Improve communication skills
Aggressive marketing strategy in banking

Institutionalization of HRM
Research and development facilities must be improved
New Talent/ professionals should be hired
Public relation desk should be established in each and every branch
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. As a caring employer the Bank enables the employees to excel and grow in
highly congenial employment conditions and culture. The career path is full of challenges and
opportunities. The Bank has absolutely open culture where members share and communicate
freely.


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NATIONAL BANK OF PAKISTAN

NBP HRM to SHRM Transformation

Information Technology Division

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National Bank of Pakistan

• 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 stake holder's value

• Highest standards of Integrity

• Institutionalizing team work and performance culture

• Advancement of skills for tomorrow’s challenges

• Awareness of social and community responsibility

• Value creation for all stakeholders

INTRODUCTION TO THE ORGANIZATION

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NBP believes that;

 People make the organization

Point of Presence - Domestic /Overseas Branches:

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The Organizational structure of NBP is given below:

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HR group is composed of five main divisions. Hierarchy of HR department at NBP is:

HUMAN RESOURCE MANAGEMENT & ADMINISTRATION GROUP

Dr. Mirza Abrar Baig

A brief description of the different wings is given below:

TRAINING & ORGANIZATIONAL DEVELOPMENT DIVISION

PERSONAL & INDUSTRIAL RELATIONS DIVISION

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SPORTS, CULTURE & CSR DIVISION

1. Specific HR functions include:

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RECRUITMENT, OUTSOURCING & REGULATIONS DIVISION

IMPORTANCE OF HR AT NATIONAL BANK OF

The main HR department has the following wings / sub-departments:

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 Industrial Relations Wing

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 Interview: Panel of the experts conduct the interview of the candidate.

TRAINING AND DEVELOPMENT:

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There are 2 categories of Talent Pool:

 NBP Talent Pool- IT:

There are 2 types of tests taken different level of employees:

Compensation and Benefits:

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 Employment to the children of the retired and deceased employees.

Promotions & Career Progression:

Bank’s internal customers:

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Achievement & Spot Awards:

Performance Appraisal System & Pay-for-Performance:

Employee Communication: Communication channels within an organization play a very

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The implementation of all HR policies depends to a great extent on continuously maintaining

Performance information Source:

Conflicts and its Resolutions:

Warnings and Termination:

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