The Nations Bank _______________________________________________________________________________________________ _

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Objectives of Studying Organization Introduction Overview of the Organization Organizational structure of HR Department HR Process in the organization Human Resource Planning and Forecasting Employee recruitment and selection Training and Development Performance Management Employee Compensation and benefits Organizational Career Management Job Changes within the organization Labor Management Relations SWOT analysis Weaknesses of the Organization Recommendations Conclusions References & Sources used Annexes/Appendices

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OBJECTIVES OF STUDYING THE ORGANIZATION

The organization (NBP) is being studied with following objectives: To know the basic concept and functioning of organization and role of HRM in the bank. To carry out the analysis of various facets of organization particularly the HRM operations and functions. To recommend measures for improvement of the organization with special reference to HRM. To study the organization with special emphasis on HRM. To know the employer and employees relationship. To dwell on training of the employees. To establish relationship between theoretical and practical orientation of various departments of the bank. Actualize the spirit of learning with analytical mind.

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NATIONAL BANK OF PAKISTAN

HISTORICAL FACTS Establishment & Incorporation of NBP:
On November 09, 1949 vide National Bank of Pakistan Ordinance XIX of 1949.

Objectives:
Initially the Bank was established to extend credit to the Agriculture Sector only. During the year 1950, the Banks Ordinance was amended so that it could take up Ordinary Commercial Banking Business as well.

Original Shareholding (Befor Nationalization)

Government Private Total 25% 75% ______ 100%

Original Board Set up:

Upto 31.12.1973 (Prior or Nationalization of the Banks)

Central Board:
Consisted of a Chairman and 4 Directors (elected by the shareholders) and 5 Directors (Appointed by the Federal Government)

Local Board:
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Three Local Boards were also established one each at Karach, Dhaka and Lahore.

Nationalization of Banks (w.e.f. 01.01.1974):

NBP was nationalized under the Banks (Nationalization) Act, 1974. All shares were acquired by GoP from the private shareholders after compensation them.

Shareholding Pattern (After Nationalization):

SBP GoP Others (Govt. owned & Controlled corporations) 1.3% 93.4% 5.3% 100.0% SAILENT FEATURES OF BANKS (NATIONALIZATION) ACT 1974: In terms of the Banks ( Nationalization) Act, 1974 Bank shall have a Board consisting of: 1. President, who shall be its Chief Executive and, 2. Not less than five and not more than seven other members.

PRESENT STRUCTURE FO THE BANK BOARD:

Mr. S. Ali Raza President/Chairman Govt. Nominee

Nominee Directors/Non shareholder directors from the Private Sector:

1. Mr. Muhammad Ayub Khan Tarain
Director

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2. 3. 4. 5. 6. 7.

Mr. Sikandar Hayat Jamali Mr. Azam Faruque Mr. Mian Kausar Hameed Mr. Ibrar A. Mumtaz Mr. Tariq Kirmani Muhammad Arshad Chaudhry

Director Director Director Director Director Director

The Chairman, the President, and other members of the Board shall be appointed by the Government in consultation with the State Bank for a term of three years.

General Provisions pertaining to Management of the Banks:

The general direction and superintendence of the affairs and business of the Bank and policy making in respect of its operations is vested in its Board. The Board is required to determine: The credit policies of the Bank Evaluation criteria for the performance of the employees of the Bank other than the president Personnel policies of the Bank, including appointment and removal of officers and employees Guidelines for entering into any compromise with borrowers and other customer of the Bank and Any other policy matter.

The Chief executive and other officers of the Bank shall act in accordance with policies, criteria and guidelines determined by the Board. The Board shall appoint committees amongst the executives of the Bank , and determine the powers, functions and duties of such committees.

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Privatization & Listing of NBP on Domestic Stock Exchange:

Under the policy of privatization / de-regulation of GoP, NBP was got listed on all the domestic Stock Exchanges in February, 2002 and Gop/SBP owned shareholding was off-loaded through public offerings as under: 1. Ist Officer in Nov., 2001 on 5% (18.652 M) Shares with a greenshoe option of additional 5% shares, at face value (i.e. Rs. 10per Share) which was over-subscribed by 6 times.

2. 2nd Offer in Oct., 2002 of 5% (18.652 M) Shares with a greenshoe option of additional 5 % shares, at a premium of Rs. 11/per share, which was over-subscribed by 4 times.

3. 3rd Offer in Oct. 2003, of 3.2 % (13.131 M) Shares at a premium

of Rs. 36/- per share which was over-subscribed by 2 times.

Summary of Current Share-holding Structrue: Sr. No. Share Holder Percentage 1 2 3 % Total Number of NBP Shareholders = (Approx) 10,000/Gop, SBP & PC 75.56 % Other (Govt. owned & Controlled Corporations) 11.33 % General Public 13.11 % Total 100.00

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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 Nations Bank, by:

Institutionalising a merit and performance culture. Creating a distinctive brand identity by providing the highest standards of
services.

Adopting the best international management practices. Maximising stakeholders value. Discharging our responsibility as a good corporate citizen of Pakistan and
in countries where we operate.

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Core Values:
Highest standards of Integrity

Institutionalizing a teamwork and performance culture

Excellence in service Advancement of skills for tomorrows challenges Awareness of social and community responsibility Value creation for all stakeholders

Goals:
To enhance profitability and maximisation of NBP share through increasing leverage of existing customer base and diversified range of products.

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Regional Offices

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Slogan: The Nations Bank

National Bank of Pakistan has following distinguishing features: It acts as the agent of the State Bank of Pakistan (SBP). At places where SBP has no Branch, it receives money and makes payments on its behalf. It provides credit for State Trading. It deals in internal and external bills of exchange and discounts them. It keeps the deposits of the people and provides lockers and agency services. It invests in government securities and bonds. It provides short terms loans to industry, import and export trade, agriculture and construction. It provides credit lines for project financing like LMM and IDA etc. The Bank to facilitate the people to have their own houses has recently launched a big project under the head of SAIBAN. NDSL a subsidiary of NBP has been established for catering the needs of capital and money market. National Bank of Pakistan performs some general Functions on behalf of the Government of Pakistan Disbursement of salaries to the government servants, private organizations and autonomous bodies. Payment of pensions to hundreds of thousands of pensioners across the country. Payment of benevolent funds to the public.

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Payment of Zakat funds on behalf of government to the needy and deserving person. Catering of collection and payment of donations for the welfare and charity purposes. Selling and purchasing of Prize bonds. Selling of charity tickets on behalf of charity institutions. Collection of all types of utilities bills. Collections of Traffic challan fees and tokens. Collections of government treasury challans both Federal and Provincial. Loaning to the talented students of the nation (Qarz-e-Hasna). Collection of fees for passport and National Identity Cards. Loaning for the purchase, construction and renovation of houses for the government employees and businessmen on easy installment and interest rate basis under the name of SAIBAN. National Bank of Pakistan performs the functions of State Bank of Pakistan in those areas where SBP has no Office.

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AN OVERVIEW OF NBP PRODUCTS AND SERVICES

Deposit Accounts
Current Accounts PLS Saving Accounts Term Deposit Accounts Short Term Deposit Special Notice Deposit Call Deposit Receipts National Income Daily Account (NIDA) NBP PLS Plus Term Deposit Certificates NBP Cash Cards Basic Banking Account (BBA) Blind and Visually Impaired Person Account

NBP Protection Shield:

No Medical Required No Documentation Premium Auto Deduction Facility Choice of Deactivation includes death due to: Natural Calamities e.g. Earthquake, Flood, Cyclone etc. Accident Riots Civil Commotion Strikes Acts of Terrorism

NBP Premium Aamdani Certificate:

Monthly Income Scheme Earn upto 11 % p.a. + Minimum Deposit of Rs 20000/- & no maximum limit for 5 years Free Demand Draft, Pay order and Cheque Book Convenience of NBP Online Aasan Banking ( for online banking customers)

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Free NBP Cash Card (ATM+ Debit) Profit paid every month.

NBP Premium Saver Account

Earn 8 % p.a. + Minimum Saving Balance of Rs. 20,001 & a maximum balance of Rs. 10,00,000/ Free NBP Cash Card (ATM+ Debit) Convenience of NBP Online Aasan Banking Two debit withdrawals allowed in a month & no limit on number of deposit transactions Profit Calculated monthly and paid on half yearly basis

Money Transfer Services

Bank Drafts Mail Transfers Telegraphic Transfers Western Union Money Transfer Letter o Authority to Encash Cheques NBP Pak Rupee Travelers Cheques NBP Online (Banking made AASAN)

Collections
Cheques Bills Drafts/Pay Orders and other Instruments

Dealing in Foreign Exchange

Foreign Currency Accounts Foreign Remmittances Trade Finance Guaratees
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Sales & Purchase of FC Notes /Tcs Foreign Currency Loans Corresponding Banking

Government Receipts /Payments

Tax Collection Pension Payment

Trustee-Ship Services

NIT (National Investment trust)

Safe Custody & Safe Deposit Services

Safe Custody and safe Deposit of Securities & Valuables Safe Deposit Lockers

Purchase and Sale of Securities

Shares and Stocks Government Securities

Currency Chest Transactions Utility Services

Collection of Utility Bills

Hajj Services
Hajj Applications

NBP Saibaan
Home Financing Home Purchase Home Construction Balance Transfer Facility (BTF)

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Home Renovation Purchase of Land + Construction Period of repayment ranges between 3-20 years Loans available upto a maximum of Rs 35 million Mark up SBP Discount Rate+ 2% (with life insurance) Mark up SBP Discount Rate +4% (without Life Insurance) Minimum approval and disbursement timing. Limited to arreas where there is no documentation, fee, resale and foreclosure related issues, so to protect the banks interest.

NBP Advance Salary

Take upto 20 times your take home salary Easy installments of 1 to 60 months, at your choice No minimum income requirement Quick processing and fastest disbursements No processing charges no collaterals, no guarantees, no insurance Markup charged at SBP Discount Rate + 5 %

NBP Cash n Gold

Facility of Rs. 10000/- against each grams of net gold weight of Gold ornaments Markup 15.5 % p.a. No maximum limit of Cash Repayment after one year Roll over facility No penalty for early repayment

NBP Kisan Dost

Agriculture Financing Program Quick and easy processing Delivery at the Farmers doorstep Technical Guiadence to farmer Wide range of financing schemes for farmers

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Financing against Pass book, residential / commercial property , gold ornaments and papers security. Finance facility up to Rs. 500,000/- for landless farmers against personal guarantee Loan facility on revolving basis for three years (renewable without documentation & approval ) Markup 15.5 % p.a.

NBP Investor Advantage Margin Financing Facility

Comfortable and secure environment for trading Easy terms requiring minimum documentation Minimum turnaround time No security requirement from the customer except fro the customers equity Customers equity freely available for investment Equity acceptable in cash or approved shares

NBP Karobar
Minimum down payment 10 % of asset price (5 % for PCO & Tele Centre) Tenure: 1 to 5 years (for PCO 2 years) Grace Period: 3 months Maximum loan amount Rs. 200,000/Age 18-45 years Markup (variable) 1 year KIBOR + 2.00 % p.a. Life and disability insurance paid by GOP

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ORGANIZATION NBP
The Bank has Chairman and president at top of the organization and executes its power through its six directors. There is also one secretary of board of directors. In addition to this the bank has following senior hierarchy in the chain of command. SEVP & Group Chief, Retail Banking Group SEVP & Group Chief, Operations Group SEVP & Group Chief, Audit & Inspection Group SEVP & Group Chief, Corporate & Investment Banking Group SEVP & Group Chief, Human Resources Management SEVP & Group Chief, Treasury Management Group SEVP & Group Chief, Commercial Banking Group SEVP & Group Chief, Compliance Group EVP & PSO to the President EVP & Secretary Board of Directors EVP & Divisional Head Employee Benefits, Disbursements & Trustee Division EVP/Divisional Head, Special Assets Management Division EVP / CFO, Financial Control Divisional EVP & Group Chief, (A) Risk Management Group EVP & Group Chief, Overseas Coordination & Management Group

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SVP & Group Chief (A), Information Technology Group

HUMAN RESOURCE

Introduction:
Institutions are all about people, if you have quality people then you will have good institutions

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.

HR Mission Statement:
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To provide more talented human resource in relation to competition in all NBP functional areas and keep them motivated and maintain total industrial harmony.

Basic Components:
Provision of Talented Human Resource Employee Motivation Industrial Harmony

ITS VALUES:
It 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.

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HR Practices at NBP:
At NBP, different functions are being practiced for the betterment and success of the business. They are:

HR Planning Recruitment & Selection Training & Development Performance Appraisal Employee Compensation & Benefits Organizational Career Management Job Changes within the organization

5.1 HUMAN RESOURCE PLANNING AND FORECASTING

5.1.1 5.1.2 5.1.3 HRP PROCESS FORECASTING HR REQUIREMENTS METHODS TO FORECAST HR NEEDS

Human Resource Planning:

To anticipate future business and environmental demands and to provide qualified people to fulfill the requirements, NBP is following several specific, interrelated activities that together constitute an HRP system that is:

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The HR department assesses current human resource skills, abilities, and potential to analyze how they are currently being used.

2. Forecasting HR Requirements:
It is forecasting of human resource supply and demand over short and long term periods

3. Action Plans:
Next step of the HR department is to matching forecasted results to action plans which include recruitment, selection , performance appraisal, training , transfers, and many other types of career enhancement activities. These action plans helps the organization adapt to change in their environments.

4. Control and Evaluation of HRP System:

Finally Controlling and evaluation is necessary to guide HRP activities , identifying deviations from the plan and the causes of those deviations. Providing feed back on the overall effectiveness of the human resource planning system by monitoring the degree of attainment of HR objectives.

FORECASTING HR REQUIREMENTS ? METHODS TO FORECASET HR NEEDS?

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5.2

EMPLOYEE RECRUITMENT AND SELECTION 5.2.1 SOURCES OF CANDIDATES INTERNAL SOURCES

5.2.1.1.1.1

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5.2.1.1.1.2 5.2.1.1.1.3

EXTERNAL SOURCES EMPLOYMENT SELECTION PROCESS

Employee Recruitment and Selection:

All advertisements and recruitment literature reflects the bank's commitment to employment equality ie "NBP is an Equal Opportunity Employer". Disabled persons receive full consideration for employment as suitable vacancies arise. All applications are evaluated on the basis of ability, merit, personal qualifies and jobrelated criteria.

Sources of Candidates:
Internal Sources: In NBP, for senior positions job posting is internal recruitment method. Current employees are given an opportunity to apply for a new job opening within the organization as to reward the employee for their past performance or give the opportunity to career development. By doing this, they retain their organizations investment in the employee that reduces cost of recruitment. One of the methods is EMPLOYEE REFFRALS that is to recommend the person for the job opening. Employee usually refers only those candidates who are confident, so that they will match with the positions and organization. Human Resource Department of NBP thinks that this recruitment technique is good as people recruited by the staff usually have some understanding of the work of the organization.

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External Sources: Print Advertisement is another method the job is posted in a newspaper or

professional journal in this way time keeping manual system is made by which HRD can reach a large audience in a specific area. Another method Internship/Field Placement in which the students who come to NBP for internship as part of their education, organization recruits them after completing their studies. As HRD considers that, those internees will have a good understanding of the fit between the person and the organization, as well as their abilities and they require less time to become productive. NBP also welcome Unsolicited Resumes that is those individuals who show interest in working for organization and send in resumes. HRD thinks that, this is best to respond with courteous and frank information about whether or not the application will be kept for further reference. The internet and the world wide web is one of the fastest-growing recruitment methods, thats why NBP also gives career opportunities on their web site which is nbp.org.com.pk on which the applicant can be available for the job. NBP can also rely on alternative staffing options like Temporary Workers are those employees who are hired on as needed basis. Selection:

In NBP selection is taken as very important part of organizations success and is integrated with all other aspects of Human Resources and determines

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what kind of employee resources the organization will have, which leads to the potential core competencies of the Organization. First, the Human Resource Department needs figure out what the job is exactly, then what tasks will be performed, from this what knowledge, skills, abilities and other characteristics will be required of the employee, and then this information should be used to define what qualities and characteristics are required , needed and wanted in the individual to be selected.

5.3
5.3.1 5.3.2

TRAINING AND DEVELOPMENT TRAINING NEEDS ASSESMENT EMPLOYEE DEVELOPMENT

TRAINING AND DEVELOPMENT

Bank has primary focus on training and development of its human resources. A number of in-house training and orientation courses were arranged for employees in order to improve their operational skills. The overall direction of the Bank has been set

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towards nurturing the strength of the human capital at its disposal. This will help to create a progressive environment with a thorough commitment of staff to meet challenges of the ever-changing business requirements and customer needs. Training was imparted through institutions like National Institute of Banking and Finance (NIBAF), Institute of Bankers Pakistan (IBP).

Objectives of training are:

To develop in them managerial and inter-personal skills. To create awareness amongst the trainees about their changed roles, and familiarizing them with the expectations of the management. To develop in them necessary communication and leadership skills. To provide them deep insight into the expectations from them of the bank's customers. To impart them understanding about their functions as supervisory and managerial personnel. To assist them in obtaining role clarity by actively involving them in role perception and management games exercises. To improve their ideas about important work areas like corporate strategies and business goals, deposit mobilization and customer service. To impart them in-depth training in the policy application and procedures of the bank relating to credit appraisal, various business schemes of the bank, foreign exchange work, returns, compilation work, inspection and audit work, handling of deposit accounts, industrial relations angle and sanction, conduct & follow-up of loan accounts.

Training Needs Assesment:

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There are three levels for determining the needs that training can fulfill. Organizational analysis: Focuses on identifying where within the organization training is needed. Operational analysis: Attempts to identify the content of training what an employee must do in order to perform competently. Individual analysis: Determines how well each employee is performing the tasks that make up his or her job.

Continual Identification of Training Needs:

Training needs of employee are continually identified by their

departmental heads as a result of the following developments: Changes in services and operations New and revised procedures or changes in the policy Inadequate performance of individual or group of personnel Results of internal Human Resource Audit Corrective / Preventive Action

Self Assessment Scheme:

Even the employee can discuss/request his/her immediate Boss/HRD about his/her competence, strengths and weaknesses. After having detailed

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session with the employee the concerned departmental head/HRD recommend him for further training and development. Skill Gap Analysis: To identifying the SKILL GAPS in respect on potential employees holding/likely to be place on key jobs in the Branches and Regions.

Types of Training:
The HR Department facilitates and conducts following types of Training: Orientation Programs Internal Generalized Programs External Generalized Programs Skills Development Program Collaborative Programs Departmental Programs Middle Management Programs Senior Management Programs Contingency Programs within Pakistan Outside Pakistan

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NBP TO LAUNCH WORLD CLASS TRAINING CENTRE Change Management Workshop NBP will soon launch a world class training center to upgrade the skills of its employees. The Bank organized Change Management workshop for its senior executives, the programme combines a dynamic computer simulation of a business firm with some of the best learning materials on change and business strategy available today. This was presented in an interesting, challenging and learning environment, enabling to focus on team dynamics. With support materials and exercises tailored for NBP, participants focused on the keys to long term success in business and levers for change.

HUMAN RESOURCE DEVELOPMENT

Development and training is an integral part of one's career path and the bank endeavors to offer opportunities to all employees to seek and achieve high standards of performance. Management help to identify training needs for improvement in job performance and experience and encourage all staff to undertake selfdevelopment.

Motivating Employees:
NBP expects from its employees that every employee should contribute towards the betterment of the bank by honesty, loyalty, responsiveness and dedication. Their integrity should be beyond doubt. They should be part of a dedicated work force, committed to the uplift of the Bank. On the other hand we also try to motivate them

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adequately. They are offered handsome salaries and adequate perks. Various schemes of group insurance coverage have been introduced for the benefit of our employees and their dependents. Incentives for acquiring professional qualifications are available to employees so that they can elevate themselves to next grade. The day scholars are also granted study leave to relieve them from official responsibilities. The employees are also offered cash rewards for acquiring a Masters degree in a banking related subject and on becoming associate of professional institutes, like IBP, ICMA, ICAP etc. Those who qualify the Banking Diploma Examination of Institute of Bankers Pakistan are also granted monetary reward and appreciation.

5.4
5.4.1 5.4.2

PERFORMANCE MANAGEMENT

PERFORMANCE STANDARDS AND EXPECTATIONS HOW PERFORMANCE REPORTS ARE WRITTEN

Performance Appraisal Reviews:

These are designed to assess and improve actual performance on the job and to identify training and development needs. They will be based on standards which include the bank's Employment Equality Policy. They will also have a key role to play in the attainment of a sense of achievement and satisfaction in the work place. Performance appraisal and feedback will be carried out in a sensitive and non-discriminatory manner.

Performance Standards and Expectations:

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The organization has a well-defined and proper Employee Performance Appraisal System. The performance appraisal established clear objectives, expectations and performance measurement criteria linked to that specific job. Objective setting for each job is given very high priority by the organization. In appraisal , the objective, interactive and meaningful feedback on performance is provided to the employee. An individuals performance objectives are actually one part of departmental and organizational objectives. When individual fulfills those objectives, a part of departmental objectives is fulfilled and in turn organizational objectives are achieved. In short, performance objectives clearly support departmental and organizational objectives. These objectives and measurements criteria are clearly discusses with the individual being appraised. The individual is properly guided by the times as well. In most cases the employees have clear and direct control over the outcome of their appraisals through their performance. Performance appraisal reflects individuals performance, strengths, key achievements on the job, areas for improvements, and recommended training. In the form of recommended training and suggestions, there is a written plan to improve employees knowledge and skills. Pay plans and highly linked to rewards for measured performance. The performance rating/pay adjustment reviewed by someone in a position higher than that of the rater before discussion with the employee and implementation and then there is final review by the HR.`

How Performance reports are written:

At NBP Human Resource Department initiates the performance evaluation of organizations personnel. Accordingly, Performance Evaluation forms of personnel are sent to concerned Departmental heads. Performance results for the previous year are based on the following criteria:

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Companys Objectives Achievements Completion of Assignments Management Expectations

NBP performance appraisal forms are based on rating scales for workers and for upper management they also behaviorally anchored rating scale. At NBP, formal performance appraisal review is conducted annually but informally supervisors always play a role of good mentor or coach to guide the employee about their performance so that they can have idea about their performance on their goals.

Implementation of Job Objectives And Its Linkage to Performance Appraisal System:

with a view to meet the growing challenges of competition and imperative need to create a high performing culture in NBP, the organizsation makes its essential that as a first step it should introduce successfully implement the concept of job objectives in the organization and subsequently link it to performance appraisal system. All group chiefs and Regional Management Teams are responsible to to make all endeavors and ensure to get job Objectives agreed and signed by the concerned officers and their respective Managers on the prescribed format. Promotions are made on the basis of Appraisal system and achievement of goals and objectives. Meticulous

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National Bank of Pakistan

P.F. No. Employee No. ANNUAL PERFORMANCE APPRAISAL (For Executives/Officers)* For the year 2008

Section I. (To be filled in by the concerned Branch/Region/Group) Name: Fathers/Husbands Name:

Designation:

Grade:I

Basic Pay

CurrentPosting:(Branch/Region/Group) Date of Joining NBP: Academic Qualification: (Last Degree) Status of Disciplinary actions, if any. Section II. (To be filled in By the Appraisee)

Regular: Contractual: Reporting To** Date of Last Promotion: Professional Qualification:

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Mention your most important achievements during the year.

Section III. (To be filled in By the Appraisee) What Training would you like to undertake to benefit you

*Also applicable to all Executives & Officers in the contractual employment. ** (RBC/ROC/RCMC/RCC/RHRC) in case of employees on RO Strength and name/designation of Supervisory Executive/Officer in case of employees on HO strength.

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National Bank of Pakistan

(Page 2)

Name of Appraisee: Part B (To be completed by the appraiser) Section I. Performance Achievement against job objectives/KPIs Rate the performance against objectives:
(1=Poor, 2=Satisfactory, 3=Good, 4=Very Good, 5=Excellent)

Objectives

Score (1 to 5) TOTAL:

Total Score of Section I = (Score of Section I Number of Objectives) x 0.7 =

Section II Behavioral Skills Score(1 to 5) 1. Job Knowledge 2. Communication Skills 3. Attitude, Behavior & Response to Controlling Office 4. Initiative 5. Attendance & Punctuality 6. Commitment to Job & Organization ___________________________________________________________
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7. Team Work 8. Analytical ability 9. Development of subordinates 10. Personal appearances and grooming. TOTAL:
Total Score of Section II = (Score of Section II 10) x 0.3 =

Overall Score = (Total Score of Section I + Total Score of Section II) Section III. Signature of Appraisee & Date (With Comments, if any)

Signature of Appraiser & Date with comments, if any (Immediate Supervisor)

Countersigned by the Appraisers Supervisor and Date

5.5

EMPLOYEES COMPENSATION AND BENEFITS 5.5.1 TYPES OF COMPENSATION AND BENEFITS

Employees Compensation and Benefits:

Compensation:
The organization follows a well-organized policy that states the organizations philosophy on employee compensation at various levels that reinforces the value of performance in the organization. It is made sure that these policies are communicated to the entire employee and full implemented. Also, on the occasion of orientation, the employee are provided with documents and relevant policies, which also includes the compensation policy. These policies,

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which also includes the compensation policy are clearly supported and monitored by the management. The compensation policy contains procedures, guidelines and methods to guide managers on how to implement the compensation system.

General Components of NBPS Compensation:

Allowances and Fringe Benefits House Rent Allowance Utility Allowance Dearness allowance Medical Allowance Conveyance Allowance Evening and night Banking Allowance Special Pay (Northern Areas) Education Allowance

LEAVE ENCASHMENT o Leave Privilege Leave Sick Leave Casual Leave GENERAL Bonuses Statutory Bonus On the Ist week of Ramazan ul Mubarak
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(30 days per annum) (18 days per annum) (20 days per annum)

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On the Event of Eid ul Azha Funeral Expenses Marriage Grant Grant of incentives for improving professional and educational Qalification Compensation Traveling Allowance Honorarium for securing Ist Position Provident Fund

FINANCES Hose Building Finance Motor Cycle Finance Car Finance Computer Finance

RETIREMENT BENEFITS Pension Benevolent Fund Leave Encashment in lieu of LPR

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Medical Facilities

5.6 ORGANIZATIONAL CARRER MANAGEMENT

5.6.1

EMPLOYEE JOB CHANGES

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ORGANIZATIONAL CAREER MANAGEMENT

ELIMINATION OF REDUNDANCIES
While focusing on the agenda of improvement in business processes for the sake of increasing efficiency and productivity, redundancies in policies, procedures and reporting systems have been eliminated through the various steps detailed below: Review/revision of various instructions and streamlining of obsolete procedures.

Empowering chief managers to accelerate the process of disposal of cases at their level without referring these to the HOK.

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Implementation of job rotation policy for OG-1 and above. Introduction of transfer policy of Assistant Treasury Officers Cash Side to General Side. Introduction of the scheme for grant of study leave. Introducing policy for promotion of graduate and postgraduate clerical and non-clerical staff as OG-1 through competitive test. from

RECREATIONAL ACTIVITIES:
Following the deliberations that took place in the Change Management Conference 2005, the NBP has taken a number of steps to promote a lively and healthy environment in the bank, by arranging cricket tournaments and hockey and volleyball matches. During the past two and half years, sports activities were progressively increased. Cricket teams of the Bank were formed and tournaments were arranged between different offices.

Right People at the Right time: Recruitment of IT Staff

Steadily increasing automation in the organization has made it critically important to hire the services of IT staff. An IT auditor, having relevant skills and qualifications, has been hired through an open and competitive recruitment process.

Hiring of Female Batch in the Cadre of OG-I

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24 female officers have been inducted in the bank with a view to give them a fair representation and address the gender imbalance that exists in the Bank. This batch has undergone extensive 24 weeks (6 months) training at National Institute of Banking and Finance (NIBAF), in Islamabad and a subsequent follow up with intensive orientation in the field offices of the NBP.

Recruitment of Security Officers on contract basis

In order to strengthen the security system and to equip our Security with trained and skilled officers and staff, 6 security officers have so far been recruited on contract basis. The adequate support staff services of 73 security guards are also at the disposal of our Security team.

Employment Equity Policy by Personnel Department

The Banks Policy on Employment Equality is designed to build on the statutory position as laid down by equality legislation and to create an awareness and a climate in which equal opportunity is developed and promoted in accordance with the spirit as well as the letter of the law of the land.

5.7
5.7.1 5.7.2

JOB CHANGES WITHIN THE ORGANIZATION PROMOTION TRANSFER

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5.7.3 5.7.4 5.7.4.1 5.7.4.2 5.7.4.3 5.7.4.4

DEMOTION SEPERATIONS Lay off Termination Resignation Retirement

Promotion Policy
The promotion policy introduced in 1979 was based on three parameters i.e. (i) qualification, (ii) length of service and (iii) standard of service. Separate marks were prescribed for each of the three parameters and, after obtaining the minimum qualifying marks varying from cadre to cadre; one could be promoted to the next higher position. While formulating the merit based promotion policy introduced in 1999, the considered opinion was that separate points should not be prescribed for qualification and length of service. The Board of Directors in its 167th meeting held on April 29, 2008 has approved the Promotion Policy 2008. the sailent features of the policy are as follows. PROMOTION IN THE EXECUTIVE CADRE Eligibility: Minimum 3 years continuous service in the grade. Basis for Promotion Written test Qualifications
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Service in the Grade Performance rating of 3 years Interview

PROMOTIONS IN OFFICEERS CADRE Eligibility: Minimum 3 years continuous service in the grade. Basis for Promotion Qualifications Service in the Grade Performance rating of 3 years

PROMOTIONS FROM CLERICAL CADRE TO OFFICER GRADE III Eligibility criteria fro promotion Qualifications Service in the Grade Performance rating of 3 years

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TRANSFER/JOB ROTATION POLICY

Like promotion, a well-defined Transfer/Job Rotation Policy and its judicious implementation can provide an environment where employees may get greater satisfaction and contribute their best efforts to their work. Although Regulation of NBP Staff provides that all employees (while they are in the Banks service) shall serve the Bank in its business in such capacity and at such place or Office as they may, from time to time, be directed. With the objective of preparing staff to accept new challenges, acquire new skills and diversified experience, the following transfer/rotation policy has been framed for all categories/sides of employees (other than clerical & non-clerical staff of the Bank):

Rotation of employees from one unit to another in a division will be made by the concerned Divisional Head on a regular basis so that no one is allowed to remain posted in one unit for more

than 3 years at a stretch. The HOD/Office in-charge will make rotation of employees from one Division to another in a planned way so that no employee is allowed to remain posted in one Division for a period exceeding 4 years at a stretch. Employees on promotion as OG-III and above shall invariably be transferred from the office/department where they were working before their promotion. An employee transferred from one office to another shall be allowed to seek his posting back to his parent office or to the office of his choice subject to administrative convenience immediately after completion of 3 years.

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The Chief Manager shall not remain posted at one office for a period of more than 3 years.

Demotion:

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