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Virtual University of Pakistan Evaluation Sheet for Internship Report

Spring 2011

HRMI619: Internship Report (HRM) Credit Hours: 3

Name of Student: Asma Saeed

Student’s ID: mc090400810

Name of Organization: Muslim

Commercial Bank Limited


Evaluation Criteria Result

Written Work Status (Internship Report) Pass

Presentation & Viva Voce Eligible

Final Result

http://www.vustudents.ning.com/



You are required to prepare yourself for presentation and viva voce.Wish you good luck.

Internship Report

On

Muslim Commercial Bank Limited

Name of Internee: Asma Saeed

Student ID: mc090400810

Session: Spring 2011

Submission date: 13th July, 2011

Re submission date: 8th August , 2011

Name of the University: Virtual University of

Pakistan




Letter of Undertaking:

Internship Letter:

ii

V i r t u a l U n i v e r s i t y o f P a k i s t a n Page 13

Dedication To:

I dedicate this report to my parents without whose help and encouragement it would

not have been possible for me to accomplish this task with in the specific time limit I

was provided with every facility by my parent which were necessary in order to

complete this challenging assignment.

iii


Acknowledgement

Every praise is due to ALLAH alone the merciful and his apostle (peace be upon him)

who is forever a torch of guidance and knowledge for humanity as whole. i pay my

gratitude to madam NADYA BASHIR and sir ZAKAB ABBASI to be here in this

organization at this level. It’s just because of his guidance, training affection and

motivation that I have succeeded in presenting this report.

I met different staff members of MCB bank .for getting information to complete my

internship report .there fore it is difficult for me to mention all the names of these people.

Some of these related to branch and some from the management team.

iv


Executive summary

MCB bank limited with more than 60 years of experience as one of the leading banks in

Pakistan ,was incorporated on July 9 1947..the bank has journeyed remarkable tenure of

more than half a century of competitively edged and well positioned heights of success

by deploying quality banking ,heads on technological development, professionally

leading management and prudent and ethical work methodologies .MCB was

nationalized along with other private banks in 19 74 as part of government of Pakistan’s

economics reform movement and was later privatized to nishat group lead consortium in

1991.

The bank has also been acknowledged though prestigious recognition and awards by euro

money, MMT, Asia money, SAFA (SAARC), the asset and the Asian bank.

My duration of internship at MCB was stated from 12 may and ended on 24th June 2011.

It was an honor to learn precious skills from highly motivated and professional

individuals from different departments of the company .the two months’ time was even

not enough to know everything about such large organization but mangers was co –

operated me in such a way that it was so easy to understand what this organization is all

about.

I spent most of my time in human resource department as it is my area of specialization.

During the internship I found many qualities skills in myself because I was not aware

before .it gave me a recognition of whole new world of professional business life and it

before .it helped me to know about people ,their attitude ,level of motivation ,professional

abilities ,skills ,values, cultural diversification etc.

MCB bank limited is group of companies has a vast human resources management

system as it is a big organization having operative in several countries .MCB bank

v


limited has its human resource development programs to compete in the rapidly changing

business environment in order to accelerate .so ,it has to train and look after the

professionals in almost every field like production managers, human resource

managers ,finance mangers, operation mangers ,marketing managers ,research and

development mangers and the lower level employee and labor.

The employee are well trained and are compensated by MCB bank limited to a larger

extent .the bank has very good system of hiring new employees. Keep good standards of

employee selection ,selection process is structured and of high quality ,sources of

recruitment is internal as well as external ,incentives are being given to the employees on

good performance ,good promotional system etc. The human resources department has

employment forecasting system that enables it fulfill the need of human resources of such

a large organization.

I conducted the SWOT analysis of the MCB bank limited and my findings are explained

here under .strength are safe and secure investment venture, innovative and new

technology adapter employee satisfaction ,well equipped and fully secure environment,

modernized banking (online + internet )and complete supervision at every level.

Weakness are weaker organizational culture, HR policies (appraisal, compensation,

career planning) , networking problems regarding ATM, weak MIS interconnectivity

among the division ,and no mobile ATM services in rural areas .

Opportunities are information technology (MIS),establishing more Foreign branches

local setup should be expanded .internet banking ,some more innovative products and

services should be introduced .

vi


Threats are downsizing is potential threat for MCB employees and they are losing their

confidence towards bank performance ,fierce competition ,changing environment of

banking ,economical political condition are a great threat, entrance of international

banks.

Conclusion and recommendations are and important part this report.

Bibliography regarding data collection and references where from information, s has been

obtained

vii


Table of Contents

Letter of Undertaking:......................................................................................................ii

Internship Letter:.............................................................................................................iii

Dedication To:...................................................................................................................iv

Acknowledgement..............................................................................................................v

Executive summary..........................................................................................................vi

Brief Introduction of the business sector:.......................................................................1

Overview of the organization............................................................................................4

History:............................................................................................................................4

Nature of business:..........................................................................................................6

Business volume..............................................................................................................7

Product and Services:......................................................................................................8

Competitors....................................................................................................................16

Organizational Structure................................................................................................17

MCB Department hierarchy..........................................................................................18

Number of employee.....................................................................................................19

Main office.....................................................................................................................19

Introduction of all departments......................................................................................19viii


Comments on organization structure.............................................................................30

Plan your internship:.......................................................................................................31

Detailed description of the operations/activities of the department(s) you worked in.. 33

Tasks performed during internship................................................................................36

Structure of the HR Department....................................................................................38

Function of HR department...........................................................................................41

Critical analysis................................................................................................................51

SWOT Analysis................................................................................................................53

Conclusion........................................................................................................................57

Recommendations............................................................................................................58

Reference & Sources........................................................................................................59

Annexes.............................................................................................................................60

ix


Brief Introduction of the business sector:

There is no single definition of bank different country varies different definition of bank.

Different experts have different opinion about the term bank .mostly experts said that

bank words are originated from two words Baucus or banqui which means bench. The

early banker Jews in lomebrardy, transacted their business at benches in the market place,

when a banker failed, his “banco” was destroyed by the people .this practice gave rise to

the word “bankrupt.

Some another author who said that the word “bank” is originally derived from the

German word “back”, meaning a joint stock fund.it is also said that when the Germans

occupied major part of Italy, the word “back “was Italianized into “bank”

Definition of banks

According to Crowther

“Bank is a dealer in debts --- his own and of other people.”

According to G.W.GILBERT,

“A banker is dealer in capital or more properly a dealer in money .he is an intermediate

party between the borrower and the lender .he borrows from one party and lend to

another.”

1


According to Kent:

“A bank is an organization whose principle operations are concerned with the

accumulation of the temporarily idle money of the general public for the purpose of

advancing it to others for expenditure”

According to Dr. Hart,

“A banker or bank is a person or company carrying on the business or receiving money

and collecting drafts, for customers subjects to the obligation of honoring cheque draw

upon them from time to time by the customer to the extent the amounts available in their

current account.”

So a “bank” is financial institution which accepts deposits from the public and, in turn

advances loans by creating credit.

Origin of bank:

Banking it is said, is as old as human society .when man came to realize the importance

of money as medium of exchange ,the necessity of a controlling or regulating agency as

institution was felt .

Some experts hold that banking system was developed as early as 2000 BC. The early

temples of Babylon were used “banks” because of the prevalent respects and confidence

in the clergy.

In Greece, the temples of Ephesus and Delphi were the biggest “bank “of their time

where people deposited money and valuable for safety and security.

2


The romans also regulated the conduct of private bank in such a way that utmost

confidence of the people was created in them .in England goldsmiths got prominence as

bankers who are known as the ancestors of modern banking.

There are different banks specializing in particular functional area.

Organization number of institution

1: central bank 1

2: commercial bank 20

3: development bank 28

4: fiancé company 71

5: cooperative bank 35

6:non-government organization 25

Pakistan’s banking sector industry analysis:

Bank plays very critical part in the economy of country and Pakistan is no independence.

Banks in Pakistan account for 95% of the financial sector .Pakistan has a strong banking

system, which entails of inclusive variation of institution ranging from a central bank to

commercial banks and to specific agencies to supply for special requirements of specific

sectors. The country started without any valuable banking network in 1947 but perceived

outstanding growth in the first two decades. by 1970, it’s an obtain a healthy banking

sector.

MCB bank banking sector of Pakistan:

MCB bank has a value in the banking sector of Pakistan .MCB bank is the largest private

sector bank in Pakistan. MCB is one of the leading banks of Pakistan with a deposit base

of about RS. 280 billion and total assets of around RS. 300 billion. In 1974, MCB was

nationalized along with all other private sector banks .this led to deterioration in quality

3

V i r t u a l U n i v e r s i t y o f P a k i s t a n

of banks services like loans portfolio and other service. The bank has a customer base of

approximately 4 million and nationwide distribution network of 1026 branches.

During the last fifteen years, the bank has concentered on growth through improving

services quality, investment in technology in technology and people, utilizing its

extensive branch network, developing a large and stable deposited base

Overview of the organization

History:

MCB bank limited was incorporated by the Adamjee group on July 9, 1947, under the

Indian companies act, 7 of 1913 as a limited company. The bank was established with a

view to provide banking facilities to the business community of the south Asia. The bank

was nationalized in 1974 during government of zulifikar Ali buttho. This was the first

bank to privatized in 1991 and the bank was purchased by a consortium of Pakistani

corporate groups led by nishat group.as of June 2008 ,the nishat groups owns a majority

stake in the bank. The president of the bank is M.U.A usmani.

Founded in 1948, nishat group is one of the leading and the most diversified business

groups in Pakistan. The group has strong presence in the most important business sectors

of the country such as banking, textile, cement and insurance.

Mian MUHAMMAD MANSAHA is the chairman of the group (and also MCB) and has

played instrumental role in its success.in recognition of Mr. .MANSHAHA; s

contribution the government of Pakistan has conferred him with “sitra –e-imtiaz”, one of

4


the most prestigious civil awards of the country. After some time the registered office of

the company was shifted to Karachi on august 23rd, 1956 through a special resolution.

This institute was nationalized with other on January 1st, 1974.at that time it had 506

branches and deposits amounting to RS.1, 640 million. Although MCB has a reputation

of a conservative bank but nationalization also left its effects on this institute as well and

by end year of year 1991in which it was privatized the total number of branches were

1287 and deposits amounting to as high as RS.35,029 million.

When privatization policy was announced in 1990, MCB was the first to be privatized

upon recommendations of World Bank and IMF. the reason for this choice was the better

profitability condition of the organization and less risky credit portfolio which was the

better profitability condition of the organization and less risky credit portfolio which

made “it a good choice for investors. On April 8th, 1991, the management control was

handed over to national group (the highest bidders).initially only 26% of shares were sold

to private sector at RS .per share.2.3 after privatization.

Ten years after privatization, MCB is now in a consolidation stage designed to lock in

gains made in recent years and prepare the ground the groundwork for future growth.

The banks have restructured its asset portfolio and rationalize the cost structure in order

to remain a low cost producer.

After privatization the growth in every department of bank has been observed.

Following are some key developments:

1: Launching of different deposit schemes to increase saving level.

2: Increased participation on foreign trade.

3: Betterment of branches and staff services level.

4: Introduction of rupee traveler cheques.

5


Vision Statement

To be the leading financial services provider, partnering with our customers for more

prosperous and secure future.

Mission statement

We are a team committed professionals. Providing innovative and efficient financial

solution to create and nurture long term. Relationships with our customer’s .in doing so,

we ensure that our shareholders can invest with confidence in us.

Nature of business:

MCB is in it’s over 50years of operation .it has a network of 1026 branches nationwide

and abroad with business establishments in in srilanka, ,bargain , Colombo

main ,petthah , maradana, wellwatte.the branch break-up province wise is Punjab

(57%),Sindh (21%),NWFP (19%) and Baluchistan (3%) respectively.

MCB has restricted the number of branches that can be opened by foreign banks, an

advantage that MCB capitalizes because of its extensive branch network. Eighteen years

after privatization, MCB is now in a consolidation stage designed to lock in gains made

in recent years and prepare the groundwork for future growth .the bank has restructured

its assets portfolio and rationalized the cost structure in order to remain a low cost

producer.

MCB now focuses on three core business namely corporate, commercial and consumer

banking. Corporate clientele includes public sector companies as well as large local and

6


multinational concerns. Banks is to provide some services to general public. MCB is

commercial bank in modern time commercial bank plays very important role and their

function are manifold .the main function and services which MCB bank limited provide

to different peoples as open different account for different peoples, account various types

of deposits ,accepting various types of deposits, granting loans and advances under taking

of agency services and also general utility functions ,few of those are collecting cheques

and bills of exchange, collecting interest due, dividend ,pension and other sum due to

customers, transfer of money place to place. Acting an executor, trustee or attorney for

the customers, providing safe custody and facilitate to keep jewelry, document or

securities, purchase of shares for the customers. Undertaking foreign exchange business,

MCB is also catering to the growing middle class by providing new asset and liability

products. The bank provide 24 hours banking convenience with the largest ATM network

in Pakistan covering 27 cities with over 151 ATM locations. The bank’s rupee traveller

cheque have been market leaders for the past eight years and recently relodged MCB

credit card.

MCB looks with confidence at year 2008 and beyond, making strides towards fulfillment

of its mission, “to become the preferred provider of quality financial services in the

country with profitability and responsibility and to be the best place to work.”

MCB has established its first Islamic banking at first floor shaheen complex,

Karachi .this complex start working from September 2003.now MCB has 6 Islamic

branches in 6 major cities.

Business volume

7


Rupee in (000)

Profit before tax 26,253,075

Profit after taxation 16873175

Total assets 567,552,613

Total liabilities 488,348,404

Deposits 431,371,937

Investment 213,060,882

Product and Services:

8


http://www.mcb.com.pk/OnlineServices/mobile_about.htm

http://www.mcb.com.pk/OnlineServices/callcentre_about.htm

http://www.mcb.com.pk/Personal/remitance.htm

9


Cash Plus

MCB lockers

business sarmaya

easy bill pay

MCB car 4u

Payara ghar

MCB virtual(internet banking)

MCB cash card

MCB traveller cheques

smart card

instant financing

remit express

MCB mobile banking

MCB call center

khsuhali bachat account

MCB ATM

MNET

Online

Current life account

Saving account

MCB banc assurance

MCB salary club

Saving maximize

Basic account

10


Cash plus

MCB’s network of 900 branches in Pakistan enables us to collect and disburse payments

efficiently with our cash management services .this also enables us to offer you a choice

of paper based or electronics fund transfer solutions including collection amounts, cross

branch online transactions etc.

MCB ATM 24 hours cash

With an ever growing numbers of ATMs operating across the nation ,the mcb ATM

network is the largest and most advanced od its kind in the country ,and is part of MCB,s

continuing efforts to provide with convenience that suits your requirements most. And

now the MCB ATM has gone global .MCB,s affiliation with master card international

brings about added facilities for the MCB travels abroad with the cirrus and maestro

networks

M net

MCB’s revolutionary m-net switch enables customers to access their MCB account from

any member banks ATM machine

11


Online

With a solid foundation of over 50 years in Pakistan, with more than 750 automated

branches, 269 online branches, over 190 MCB ATM’s in 34 cities nationwide and a

network of over 16 banks on the MNET ATM switch, MCB is positioned at the forefront

of the banking industry in Pakistan .this success has been possible because of never –

ending drive to achieve higher levels of excellence, constantly striving to raise the level

of performance.

MCB mobile banking

At the fore front of technological excellence, MCB has proudly introduced MCB mobile

banking .MCB MOBILE banking provides the convenience of accessing account balance

information and mini statements whenever the customer is available.

MCB mobile banking services is available to all MCB ATM cardholders,24 hours-365

days .they just have to call MCB help line on(021) 111-000-777 or any MCB online

branch for assistance.

MCB mobile banking gives customer easy and quick access to their account (s)at any

time including holidays .with MCB mobile banking customer can

Check your balance

View the last 4 transaction of your MCB account

MCB mobile banking is free service for MCB account holders who have ATM card .all

they have to pay for is the cost of an sms message if charged by the services provider

12


http://www.mcb.com.pk/OnlineServices/mobile_about.htm

MCB rupee traveler, s cheque

MCB rupee traveler’s cheques were first introduced in 1993 as safe cash for traveling and

travel related purposes .the product has been extremely popular and is preferred over cash

by customers while traveling and in all walks of life .MCB rupee travellers cheques- the

safest way to vary cash the most widely accepted way to pay cash for travel related

purposes .RTC is a safe and secure way to make payments nationwide/

MCB bank has been at the forefront of providing its customers with new and innovative

product and financial instruments that are safe, secure and profitable.

MCB CASH CARD

The wide spread acceptability and frequent use of MCB ATM cards has prompted the

bank to add more value to the cards which cater to customers evolving cash needs

enabling them to go ahead with ease and convenience .this reinforce MCB commitment

to provide to its customers safe and secured mode of cash substitute.

MCB cash card is useful means of cash for MCB customers and non-customers alike:

Travelers

Businessman

General public13


Payara ghar

MCB offers three home financing options for Payara ghar .MCB payra ghar provides

flexible and competitive home financing facility with option of home purchase,

construction and renovation. With MCB schemes customers can obtain the financing to

purchase a house /apartment ,construct own house or renovate existing house

immediate .nothing could be more convenient than owning a house and paying easy

installments that takes a step closer to becoming the owner a house and paying easy

installment that takes a step closer to becoming the owner of their house .it is better than

paying a monthly house rent which takes nowhere other than increasing your

expenses .Payara ghar is definitely the most feasible and direct route to a dream house .

MCB car 4 u

Car financing and leasing at competitive rates with flexible option. Car 4u finances both

semi-commercial and noncommercial vehicles for personal and business use.

Flexible:

Option for financing or leasing

Financing tenures from 1to 7 years

Options for new as well as used cars

Option for local as well as imported cars

Option for early payment

Option for first year insurance financing

14


Affordable

Lower mark –up rates

Lower insurance rates

Only up to 10% down payment

Equal monthly installments

Speed:

Fast and hassle free processing of application.

Priority delivery on different vehicles

Business sarmaya:

MCB business sarmaya is the best running finances facility against residential property

which empowers to manage business dealings better.so customers can get MCB business

sarmaya and thus improve their business ,avail lucrative opportunities and expand their

business ,with absolute satisfaction of cash flows.

Khushali bachat account:

15


Khsuhali bachat account is one of the most popular deposits accounts offered by

MCB .It’s a special type of account which provides the account holder additional

facilities for payment of utility and HBFC.

16


Competitors

National bank of Pakistan

Bank al falah

United bank

Allied bank of Pakistan

Citi bank

Habib bank LTD.

Faysal bank

Prime commercial bank

Abn amro bank

Suadi pak commercial bank

Indus bank

Soneri bank

Bank of Punjab

Standerd charterd

Askari bank

17


Organizational Structure

18


19


MCB Department hierarchy

President

Senior executive president

Executive vice president

Senior vice president

Vice president

Assistant vice president

Officer grade123

20


Number of employee

MCB has 9415 number of employees

Main office

1: registered office; MCB building, f-6/g-6 Jinnah Avenue, Islamabad

2: principle office: MCB tower 1.1. Chundrigar road, Karachi.

3: registrars and shares registration office. THK ASSOICIAT (PVT.)LTD.

Shares department ground floor,

Modern motors house

Beaumont road, Karachi.

Al Ghouse main jail road Lahore

Introduction of all departments

Audit RAR group21


Banking operation group

Business development &new initiative

Consumer banking group

Commercial branch banking group

Compliance &control group

Financial control group

Human resource management group

Information technology group

Islamic banking group

Project management group

Risk management group

Strategic planning &investment group

Special assets management group

Treasury and FX banking group

Wholesale banking group

Audit &RAR group:

Code of corporate governance in Pakistan mandates establishment of internal audit and

function for every listed company .internal audit is an independent, objective assurance

and consulting activity designed to evaluate and improve an organization’s by bringing a

systematic, disciplined approach to evaluate and improve the effectiveness of risk

management, control and governance process, the function Is performed by competent

professionals called the internal auditors.

In MCB, this function is operated by audit & RAR group.

In line with global best practices the group follows risk based audit methodology. The

group comprises of the following teams.

22


Operational audit – for carrying out the audit (and other ancillary

reviews/assignments) of branches and management offices within the

bank.

It/is audit-for carrying out the audit of it systems, .applications and

infrastructure.

Basel compliance department- for carrying out audits of various

projects/reporting under basel2 accord.

Monitoring &whistleblowing department–for following up on resolution

of audit observation and implementation of mcb, s whistleblowing

program.

Training quality assurance department –for ensuring quality of

audit/review reports as per set standards .moreover this department

ensures professional development of auditors.

Banking operation group:

This group is a support to all transactions and financial functions of the bank.

All back-end processing and dealings are routed to different areas of this mammoth

group. The group provides help to commercial banking and consumer banking by

handling cash and cash transactions, issuing various instruments like pay orders and

demand drafts .they also support treasury by book/record keeping and processing of all

trade and finance operations .in additions to this ,they also provide general services,

facility management of the banks expense lines and procurement.

The operations group .due to its size, has introduced units like internal control

reconciliation unit and process re-engineering unit to maintain an efficient and risk free

work flow.

A complete list of different function in operation is provided below:

Centralized operations

23


Treasury back office

Trade services

Process re-engineering

Branch banking operations

Central processing unit

Central account division

General services division

Internal control

Reconciliation

Business development &new initiatives:

Every day , organizations comes up with new and invigorating product /services to attract

customers .in order to compete with such rapid changes ,fast growing market and stiff

contenders ,we have dedicated an entire unit whose job is to monitor such

transformations and develop new business strategies in order to keep our business up to

mark .

This group basically is the think tank of the organization they deal in long term strategies

and provide appropriate situation to deal with business issues. This function works

closely with other groups and he president in order to identify organization and tactical

goals .the entire study is based on statistical data and research carried out from time to

time.

Consumer banking group:

This group primarily meets the needs of individual customers .it deals with selling

marketing and managing consumer products and providing various services to its

customers.

24


The consumer banking group targets the consumer market their sales and product

development is completely managed by specific teams that are wholly dedicated to the

specific product. Each team has the responsibility of making their respective product

efficient .competitive and user friendly .the product being offered by mcb bank

Unsecured assets:

MCB visa (credit card)

MCB personal loans (loan facility)

Secured assets:

Car 4u (car finance facility)

Pyara ghar (house loan facility)

Business sarmya (business establishment facility)

Aside from secured and unsecured assets, consumer banking also includes all liability

products, Banc assurance, MCB privilege & investment services.

The support function to these products such as managing the risk factors, operational

processing, customer facilitation, media /advertisement and quality control are also

included in the consumer banking group. These include credit risk and initiation, call

center, marketing services, services &quality assurance.

Commercial branch banking group:

This is the largest business group existing in the bank .therefore due to its sheer size; it

has been divided into four portfolios, north, south central and east.

25


The whole group comprises of over 1000 online branches, about 20-30 branches

(depending on the area) form a region and further 2-3 region from a circle .every circle

office is managed by a general manger. Currently there are 14 circle offices present in our

existing network.

The major function of this group is to manage assets and liability based retail

product .more than 90% of the bank ,deposit base is managed by this group .funds

generated by these branches via deposits are utilized by various business groups to give

advances to customers. Excess funds are placed by treasury in the money market as well

to earn higher spreads .the funds generated by the bank in shape of deposits are used to

meet financing needs of our customers

The commercial branch banking group is in continuous pursuit of enhancing banks brand

image by main ting high services standards, building quality assets &optimal liability

book.

Other than these products, the commercial branch banking group facilities incoming

customers at branch and extends the following

Liability products

Smart card

Rupee traveler cheque

Virtual banking

Online banking

Mobile banking

Easy bill pay

Lockers sme &mid-market

Utility bills

Haj services

Trade services remittance

Remittance

Cross-sell-(banc assurance car 4 credit, investment services)

26


Compliance & control group:

Regulatory compliance refers to systems or departments in the organization that ensure

that personal are aware of and take steps to comply with relevant laws and regulations.

Bank compliance strategically supports and reinforces the organization’s goals and

objectives .broadly speaking, compliance means adherence to local laws and regulations

including banking companies’ ordinance 1962 and SBP prudential regulation and internal

policies and rules of the bank and specific operational procedures.

Moreover, compliance is not only a function of complying with the law, but a broader

integration with the organization’s corporate responsibility.

Overall compliance group provides advice and guidance to the business to the business

groups to conduct their work within the requirement of the regulatory environment and

also provides regular awareness training to the bank staff in order to promote a healthy

regulatory climate.

Financial control group:

The financial control group (FCG) mangers risk by implementing financial controls over

business activities .FCD is responsible for the bank’s financial records ,ensuring that the

assets and liabilities of the firm are properly controlled ,and providing accurate and

timely financial information to senior management as well as to statutory and regulatory

bodies.

27


The group provides profitability analyses, business plans, and budgets supporting current

and future business initiatives. Currently our financial control group is divided into seven

sub groups.

Financial reporting unit

State bank reporting unit

Branch licensing unit

Taxation unit

Budgeting and management reporting unit

Properly management unit

CMIS unit

Human resource management group

Human resources is term which many organizations describe as the combination of

traditionally administrative personnel function with performance management ,employee

relation and resources planning .the field draws upon concepts developed in industrial

organizational psychology.

The objective of human resources is to maximize the return on investment from the

organization, s human capital and minimize financial risk .it is the responsibility of

human resource managers to conduct these activities in an the human resources

management group at MCB is divided into the following areas:

Organizational development

Hr strategy

Compensation &training

Hr administration

Hr financial services &development compensation &training.

Information technology group

28


Today, the term information technology has ballooned to encompass many aspects of

computing and technology, and the term is more recognizable than ever before .the

information technology umbrella can be quite large, covering many field .it professionals

perform a variety of duties that range from installing application to designing complex

computer networks and information databases .a few of the duties that it professionals

perform include data management, networking ,engineering computer hardware ,database

and software design as well as the management and administration of entire systems.

When computer and communication technologies are combined, the result is information

technology or “info tech”

Islamic banking group

With the emergence of different Islamic banks in the local market a lot of leading and

established conventional bank are coming up with branches for the sole purpose of

Islamic financing

MCB Islamic banking group operates through a network of 11 branches across Pakistan

and Pakistan and offers sharia complaint alternatives to conventional banking products

currently; our Islamic branches offer the MCB al-makhraj innate account (current

account) as well as the al- makhraj saving account and the al –makhraj term deposits.

In addition, Islamic banking offers auto and equipment financing based on the principles

of ljarah muarabaha and diming mushrika.

Project management

Project management MCB has embarked on the symbols project .symbols is an integrated

solution provided by system access for requirements of banks. System access provides

29


universal banking solution that help bank deliver a broad range of banking products and

services for retail and wholesale banking system access provides solutions for back –

office transaction processing ,front office multi-channel delivery card management and

payments .system access solution provide straight –thorough transaction processing ,front

–office multi –channel delivery ,card management and payment system access solution

provide straight –through transaction processing centralized common services .work flow

driven business process and an enterprise –wide customer information repository.

MCB Pakistan –was the first Pakistani bank to offer internet banking after the symbols

MSc solution was successfully deploy within four months .symbols cbs solution also

provide its scalability in supporting large sized by being deployed as the core banking

solution to power MCB,s network of over 900 branches.

Risk management

RMG plays a pivotal role in monitoring the risks associated with all the activities of the

bank .the role of the group is to act as a strategic partner to the business units advising

them on risk issues and best ways to identify and manage these issues as well as a risk

controlee setting parameters for roes activities and reviewing compliance with these

parameter in order to ensure that the bank does not incurred any undue risk without

satisfactory tenure

The group is split into following sub function

Credit review

Credit risk control credit risk

Market risk management

Basel2 project /operational risk

RMG compliance

Strategic planning &investment group30


Strategic planning &investment group (spic) of the following four divisions:

Legal affairs division

Corporate affairs division

Capital market

Strategic planning division

Special assets management group

SMAG as it is called ,deals with those advances /account which have been classified as

non-functioning accounts .this group searches or adequate means for obtaining closure on

these accounts this can be a result of extensive negotiation with the client ,action of

selling goods that were mortgaged seeking appropriate means of investment or imposing

legal suits. The group is also required to report these matters to regulatory authorities on

timely bases.

The advances are currently limited those booked under the corporate or commercial

umbrella these accounts when not performing of 360 days are placed under the loft

category and are reported to SMAG

This group then undertakes the all necessary actions to recover /minimize the write-of

factor.

Treasury &fx banking group

This group deals with investing the bank’s deposits into productive and lucrative markets

with an intention of driving profits treasury deals with short term investment with in the

money market or other products it is also responsible to maintain service levels with their

31


clients and to provide them with effective trading rates .in order to retain/generate

business

It’s further classified into following sub function

Money market desk

Foreign exchange desk

Treasury marketing unit

Derivatives desk

Whole sale banking

Whole sale banking provides banking services to large local and multinational corporates

client s and financial institution the group also manages the transaction banking plate

forum (both trade and cash management)and international division the bank

The wholesale banking group at MCB bank limited comprises of following business

Corporate banking division

International division

Transaction banking division

Investment banking division

Financial institution’

Trade product division

Comments on organization structure

Structure of the organization is well developed it is designed according to the

requirements of the bank due to its stable structure it gives required results to

32


organization.it meets the human resource requirement of the origination enhancing their

abilities and capabilities to perform the assign tasks effectively and efficiently.

Plan your internship:

Firstly I started my internship in MCB house situated at jail road near saddique trade

Centre. It’s a head office of MCB bank

In 2008 the head office of MCB was shifted from Karachi to Lahore in newly constructed

building, namely MCB house located at a sharea ghous-ul azam, commonly known as jail

road.

Major departments in MCB house are finance department loan department human

resource department e.t.c.

I also worked and reported in shadman branch. Branch office deal in financial human

resource department. And this department deals in recruitment cases retirement

cases .issues salaries and in shadman bank deals with deposits and receipts and payments,

utility bill received.

The general division in branch is as follows cash department, deposits department

advances and credit department, remittance department, foreign exchange department, IT

department

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but I am working in financial human resources department only .MCB house working

environment are very comfortable management are very cooperative .most of time my

internship period was in MCB shadman branch .they are very cooperative help full,

management are so gentle, they provide every guideline about working to make things

better .i am working under sir ZAKAB .and he is very cooperative person.my internship

is project base.

MCB believe in creating maximum economic value for our clients and shareholders

while maintain the highest human values and principle. MCB is one of the leading banks

in Pakistan. As one of the largest and oldest banking corporations in the country .the

culture of MCB is strong and employees are professional committed to their work.

Bank is continuously focusing on developing a new and innovative product to attract

their target market. Strong customer relationship. Assets utilization is very good .it has

largest ATM network in Pakistan.

I join MCB for internship on 12TH APRIL to 24TH MAY and it ended on 24TH MAY.

In MCB house I worked in record keeping department, human resource department and in

shaman branch office I worked in financials and human resource department.

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Training program

Detailed description of the operations/activities of the department(s) you

worked in.

Human resource functions:

The human resources department (HRD) supporter the importance of the individual while

thinking strategically .HR conveniences the establishment of an atmosphere in which

people have the incomes to continuously grow in motivated for carry on improvement for

the remunerations of all stakeholder.

Situated as strategic business unit with in the commercial structure of the MCB ,the HRD

,s has as its prime responsibility to give to the organizations efficiency by attractive its

people and line up the strategies and actions and system to the policy of the business .it is

through this that the HRD adds value to the institution.

The human resources department (HRD) conveniences and partner with its customers

(mcb staff) in applying the planned strategy through.

Capability grounded HR systems.

Policy and actions

Evolving abilities

Appearance organization

Clear and exposed statement

Remuneration and appreciation

Employee happiness

Variety

Agreement

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human resources outlet is to assurance the important services, progresses and policies are

in place to succeed employee to accomplish at their finest, be safe and satisfied with their

work and be properly developed .human resources is also vital to settle that employees

energy in an atmosphere which is in unity with the department’s values, the related

legislative requirements and public service values and best training

Human resources area office is liable for the administration of the human resources role

for the department of human services .this entail of responsibility for human resources

systems, policy and training through the branch. The branch is planned to importance on

planned human resource work, the supervision of departmental mangers and human

resources staff in areas and divisions

Human resources have a number of areas of focus including:

Employee relation

Employee security

Managerial facilities

Arrangement and concert

Organizational capability

Organization growth and maintenance

The human resources branch managers a number of organization-wide schemes through

the department in the above areas, in association with human resources staff in area and

programs.

The branch everything closely through manufacturing relation branch (situated within

financial and commercial facilities division) in evolving and applying enterprise

negotiating agreements and issue –resolution with mergers covering the department’s

employees

Personal objectives36


During my internship in the MCB limited, I really enjoyed to work with the staff of

branch, MCB HRM and finance department in Lahore. It was almost impossible to work

in all the departments’ within that limited time. But on my request the staff of branch

provided me the opportunity to work in the different departments within that limited time.

But on my request, the staff of the branch provided me the opportunity to work in the

different department for the sake of practical knowledge .for providing me the great

environment to work in different department & seats and learnt the followings.

I worked as an internee in MCB main jail road and MCB shadman human and

financial resources department .the main objectives to work in MCB were:

Duration of my internship from April 12,2011 to May 24, 2011

To get some experience in working with well reputed organization.

To gain knowledge about the professional environment of the bank.

To know about the technology utilized in the banks,

To deal and mange with the situation of stress.

To know about the documentation process of employee of the bank

Purpose of internship

Internship is the capstone experience that provides me with hands on, real –world

experience in a work setting. Ideally, internship will enable interns to:

Integrate and use my knowledge and skills from the classroom,

Discover where further competence is needed,

Take steps to gain that competence under educational supervision ,and

Become better acquainted with the types of work setting in which such

competence can be applied.

37


Tasks performed during internship

Inquiry of employee files

During my internship, I was assigned a special project checking employees files and to

check their qualification and their degrees and report it to the concerned officers to check

it from the concerned board or university. The purpose of this task was to check the

authenticity and validity of the degrees.

During this project, I checked all the employees files assigned to me and checked their

relevant documents and reported to the concerned officer.

Documentation

I was handed over the duty of documentation of appointment letters of newly hired

employees and to arrange them in sequential order after checking the letters and

documents.

Salary section

I worked in salary section, which is working under HR department of the bank .this

section is responsible for maintaining the records of employees regarding all type if

payments including loans and benefits. I learnt the process of payment of salary, loans,

benefits and provident fund. In this department I learnt the procedure of payment to

employees and learnt all the rules regarding expenses of the bank Calculation of

employees, turnover:

38


During my internship, I performed a special task with HR department of calculating

employees Turnover and the reason for turnover of the bank, for decision making for

higher management.

ID card

I performed my duty in employee, ID card section, where I completed the ID card

composing process after checking employee’s information, subsequently comparing it

from bank’s record .i dealt with approximately 4000 employee cases. The forum related

to employees of different cities of Pakistan.

Arrangement of employees, files in the vault

I performed duty in the files store where I was responsible for arranging employee files in

order with respect to employee.

Data entry of blood relation forums

I entered the data of blood relatives of the employees and the forum range up to 7000

approximately .this task was project based.

39


40


Structure of the HR Department

41


Dr. MUHAMMAD YAQUB

Director

Former governor of SBP (1993-1999), DR.YAQUB has held various offices for the

government of Pakistan and the IMF .appointed to the MCB board in April 2006, he is a

member of the audit committee, the business strategy & development committee and the

human resource committee, the business strategy &development committee and the

human resource committee

Meeting held (4)

Members

1: MIAN MUSHAMMAD MANSHA –CHAIRMAN 2: MIAN RAZA MANSHA

3: Dr .MUHAMMAD YAQUB 4 .MR.MU.A.USMANI

5: Mr. SHAHZAD SALEEM

Terms of reference

the main tasks of the human resources committee are ensuring review of existing policies

and revision in these policies as deemed necessary ,proper classification and

reclassification of employee ,pay scales ,job description and methods of periodical

reviews, description and methods of reviews, development of in –house

expertise ,approval and revision of organizational setup of latest criterions for recruitment

,training and performance appraisals and effective management of information systems to

monitors implementation of policies as approved by the board .RAZA MANSHA is a

member of the business strategy &development, human resources, risk management

portfolio review, physical planning, it system &contingency arrangement committees.

Mr. SHAHZAD SALEEM is the chairman of limited and NISHAT CHUNAIN power

limited& DIRECTOR of MCB.

Muhammad ATHER is head of requirement &training .and FAWAD AHMED KHAN is

senior HR manger

And in my HR department members names are sir UMAR (SVP), madam KHAILIDA

(VP) and handled human resources matters (like retirement cases recruitment cases and,

dead persons documentation cases, sir AKIF (AVP) and handled it department. Sir

42


MUHAMMAD ZAKAB ABBASI which I report he is officer grade 1 and HR financial

services division, human resources management group, SHADMAN branch Lahore

Number of employees working under HR department SHADMAN branch has 15.

There is no sub department of human resources management

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Function of HR department

Human resources planning:

Human resources planning is the term used to describe how companies certify that their

staff is the right staff to do the jobs .sub topics include planning for staff recruitment,

planning for candidate search, training and skills analysis and much more.

Human resources forecasting and human resource audit are the two most important

components of this type of planning .human resources forecasting refers to predicting an

organization’s future demand for number ,type ,and quality of various categories of

employees HR planning is done by the organization basically to ensure the following

points

It has the right people in place

It has the right mix of skills

Employees display the right attitudes and behaviors,

Employees are developed in the right way.

In MCB method to forecasting HR needs are:

Methods to forecast HR needs

HR department in MCB uses following approaches to forecast its human resources

requirement

Firstly they used zero based forecasting techniques uses current level as starting point

for determining future staffing needs.

Secondly they adopt bottom up approach each level of organization, starting with

lowest, forecasts its requirements to provide aggregate of employment needs.

Mathematical model: assist in forecasting. Relationship between sales demand and

number of employees needed is positive one.

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.Employee’s recruitment &selection

Sources of candidates

Internal sources

External sources

Employment selection process

Recruiting refers to the process of attracting potential job applicants from the available

labor force .every organization must be able to attract a sufficient number of the job

candidates who have the abilities and aptitudes needed to help the organization to achieve

its objectives.

Sources of candidates

While hiring, the organization has an internal as well as external pool of employees. The

current employees are the internal sources for recruitment. Whenever a position is vacant,

the organization can post the vacancy internally and search for a suitable candidate’s .this

is also convenient for the organization as it reduces the search time, cost and also serves

as motivator for the employees.

External source includes all the people within or sometimes, outsides the country who

meet the requirements of the job when the organization publish the job advertisements in

newspapers and on websites, they are searching for the candidates through external

sources that is outside the organization.

Internal sources

Some internal sources of requirements are given below

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Transfers

In MCB the employees are transferred from one department to another according to their

efficacy and experience.

Promotion

The employees are promotes from one department to another with more benefits and

greater responsibility based on efficiency and experience

Upgrading and demotion

Others are upgrading and demotion of present employees according to their performance.

Retired and retrenched employees

Retired and retrenched employees may also be recruited once again in case of shortage of

qualified personnel or increase in load work .recruitment such people save time and cost

of the organizations as the people are already aware of the organizational culture and the

policies and procedures.

Decreased employees and disabledThe dependent and relatives of decreased employees and disabled employees are also

done by many companies so that the members of the family do not become dependent on

the mercy others.

External sources:46


Some external sources of requirements are given below online advertising we advertise

on our own website.

Print advertising we advertise in the lawyer, legal week and other legal publications

Referrals/recommendations: one of our main sources of candidates is referrals and

recommendations from other candidates who we have placed.

Employment exchanges

Government establishes public employment exchanges throughout the country these

exchanges provide job information to job seekers and help employers in identifying

suitable candidate

Employment selection process

Excellent employee selection starts with the main elements of the job description and the

success factors. with the job parameters, responsibilities and skills /knowledge and

abilities laid out ,the interview assessment becomes much more straight forward .the next

step is to define which elements are most important and rank weight them accordingly 3-

4 from each section sensible and do this before interviewing the candidates.

Training &development

The objective of training activities are to keep MCB employees well-informed of latest

professionals knowledge and skills in all areas of banking , as well as to reinforce a

passion for the highest quality of customer services at all levels .training and

development is essential to carry out the work and run the organization smoothly.

Training need assessment47


Training need assessment can be as simple as asking an employee what they’d like to be

able to do better to as complex as developing as individualized training plan for every

employee. Learn how select appropriate training need assessment approaches and tools

training needs assessment is tool that helps you create a superior workforce. Training

programs so are conducted continuously whenever training need is assessed and trainers

in this case are the immediate supervisors.

Employee development

Human resources management ,training and development is the field concerned with

organizational activity aimed at bettering the performance of individuals and groups in

organizational settings .it has been known by several names ,including employee

development ,human resource development ,and learning and development .employee

development is the process which includes an ongoing and joint effort of the employee

and the organization and in which work is done to upgrade employee’s knowledge ,skills

and abilities. MCB shows concerns for employee development programs because it

makes positive contributions to organizational performance .a more highly skilled

workforce cab accomplish more and a supervisors group can accomplish more as

employees gain in experience and knowledge.

Performance Management

Setting performance standard &experience

Performance management is one of the most important parts of supervisor’s job whether

working with long term employee or a problem employee, all staff members whether

48


working with a long term employee or problem employee, all staff members need

ongoing feedback about organizations expectations and their performance.

Setting performance standers &expectation

Standard of performance provided the basis against which the individual can be

effectively appraised .there are eight condition to consider when setting standards of

performance i.e. standard of performance are based on the job and not on the person

doing the job ,performance are achievable performance are understood by the employee

performing the job ,performance are agreed upon by both the employee and

supervisor ,performance are as specific and measurable as possible performance should

be time oriented.

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Employee compensation &benefitsIn an addition to competitive base salaries and incentive opportunities MCB also offers

comprehensive and competitive benefits to both full time and part time employees

compensation is one of the top issues which the employees look at when they want to join

organization.

Type of compensation &benefits

The career management process begins with setting goals /objectives .a relatively specific

goals /objective must be formulated .this task may be quiet difficult when the individual

50


lacks knowledge of career opportunities and /or is not fully aware of their talents and

abilities.

Organizational career management

Employee job changes

Job changes with organization:

Promotion

In MCB ,is an increase in rank which may also be accompanied by a raise in pay, benefits

and responsibility ,most people view promotions positively, as they indicate that the

individual being promoted is successful, valuable and useful .in many workplaces. People

actively work towards promotion and its accompanied benefits.

Transfer

In MCB the change of an employee from one position to another position with the same

salary range maximum is termed a “transfer”

Demotion

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A demotion is a reduction in an employee’s rank or job title with in the organizational

hierarchy of company, public services department or other body

Serrations

There are four types of separation layoff termination, resignation and retirement

Layoff

When a company eliminated jobs regardless of how good the employees, performances.

1: A risk reduction, made by investment bankers that minimizes the potential down side

associated with a commitment to purchase and sell a stock issue unsubscribed by stock

holders holding rights.

2: when company faces financially difficulties.

This is method whereby an investment banking firm. Who has committed to buying up

all unsubscribed shares during a rights offering entering into the contract and selling the

shares in other words, they are hedging against any losses due time.

Termination

Termination of employment is the end of an employee’s duration with an employees.

Depending on the case the decision may be made by the employee the employer or

mutually agreed upon by both.

52


Resignation

A resignation is a personal decision to exit a position, though outside pressure exists in

many cases. A resignation is the formal act of giving up or quitting one’s office or

position.

Retirement

Retirement is the point where a person stops employment completely, a persona may also

semi –retire by reducing work hours.

Labor management relations:

IN MCB labor management relations are based on mutual trust between labor and

management .establishment of a relationship of mutual consent &mutual trust &respect

between labor and management, personnel management is conducted in accordance with

53


four basic principles :(1) creating a workplace environment where employee can work

with their trust in the company .(2)creating a mechanism for promoting constant and

voluntary initiatives in continuous improvement (3)fully committed and through human

resource development and (4)promoting teamwork aimed at pursuit of individual roles

and optimization of entire team .

Recruitment:

The step to step recruitment process followed by organization is:

Job analysis is every important as job analysis information is used in selecting and

recruiting ,compensation ,performance appraisal ,training and in resolving other issues

which MCB faces identify vacancy.

Prepare job description and person specification

Advertising the vacancy and sourcing focuses on activities to attract both passive and

active candidates.

Managing the Reponses

Short listing

Arrange interviews

Conducting interviews and decision making and common strategies include peer

interviews, panel interviews, and the use of behaviorally-based interview techniques.

Reporting include surveying applicants and hiring mangers collecting and analyzing

applicant flow data, and reporting performance measure and processing metrics.

Critical analysis

54


I deliberated organization and their strategies and rules regulation. In MCB there is solid

communication between the employees and managements. The planning and selection

process of MCB is very good.

MCB employees are satisfied from their job besides their seniors are happy from their

performance. The recruitment and selection process of MCB is not good .due to which

scrawled employees are selected and they did not work fine according to the essential of

the job. Although in MCB selection process is based on interviews and qualification.

They select and hire the essential employees for the compulsory job that’s why there are

fewer chances of dissatisfaction. In MCB they give superior training for selected

employees, management system of MCB is very nice. in MCB they collaborate with

every one wherever they need help .

Mostly employees are satisfied their jobs as well as their managers are also satisfied their

jobs .but MCB need to improve their management skills and planning for selection and

hiring process. Also they should think about the need and want of employee that why

they are not satisfied from their jobs and why they don’t perform very well as they need.

Some employees of MCB are not satisfied their current salaries they get, from the

bank .and their performance is not good. If MCB are fully enjoying their work and their

performance is good they are happy from the company policies.

So it shows that unhappy employees are less fruitful while fulfills employees are more

productive, inventive and faithful .as verified that advance in job fulfillment principal

towards increases in employee confidence ,which lead to amplified employees

performance.

Performance of employee directly affected by the role and behavior of supervisors, the

work environment, duty hours, salaries, job security and rewards and promotions. There

must be proper methods and planning’s for employee hiring every selections and hiring

55


every department must have their own authority. Management structure style must be

standard as required .it’s the responsibility of supervisors to take care of their employees

and help them in every difficult task where they need help from them Also the employees

don’t get ranks according to their performance and experience .this creates hate and

discrimination among employees and managers .because they want their right

compensation which they deserve.

Employees of MCB don’t feel secure about their jobs and future .they always tension due

to their due to their current job and worried for future .this affects their performance

badly.

The employees in MCB often feel over work load as the work schedule is tough and also

work load is too heavy .which make them mentally tired and their performance becomes

and their satisfaction to their job also become low .

Organization structure of MCB bank is well developed is deigned in such a way that it

fulfill the need of bank .different department nets are created which are well coordinated

through the structure. Every department performs their function in efficient manners.

Span of control in MCB bank is approximately 10 to 15 in a branch .span of control is

defined as number of employees to report mangers.

In MCB bank various area of country and different division under the head offices

managed systematic board of span of control with decentralization of authority, various

decision of minor importance are made through control purpose so there is centralized or

decentralized in this esteem.

Benevolent authoritative and participative authoritative system is used in MCB .and it is

vertical chain of command are used orders are passed from top management to lower one.

Structure of human resources (HR) department is very complicated one depending upon

the requirement of the bank this department is controlled by president, group head of

human resources management and divisional head of (HRM).

56


Head compensation ,head HR financial services ,head HR operation, head DAC

requirement and training ,head organization development, these five are responsible for

overall working of they are directly report to the divisional of HRM.

Head of compensation mangers, head operation, head DAC recruitment and

training .head organization development has different department under their control at

lower level .and responsible for their proper working of the department. The structure is

well designed to meet the requirement of the organization.

The main function of HR department is to arrange the required human resources for the

organization and make policies for development of human resources .employees

requirement and selection policies of MCB is developed in such a way that a suitable and

fruitful candidate can be obtained.

After selection the employees are given training so that the employees can get the

required abilities for the performance of tasks assigned to him in efficient

manners .employees are also provided benefits like increment, promotions, medical

facilities, loan facilities ,pension and some other benefits. Which create encouragement in

the employees to their task according to given standards and play a role in the progress of

the organization.

Practices and policies:Policy is principle or rule to make decisions that result in required outcomes. MCB bank

has developed different policies like consumers credit policy, privacy policies, Business

policies, recruitment policies employees’ development and loan policies, Services and

product policies, Operational policies and monitoring policies. And some other related

policies that are help full for the proper functioning and operation of banking

function .MCB strictly following these policies that results in the earning huge revenue

and goodwill for bank .MCB doing different practices that create trust in customers

employees and other stake holders due to efficient policies and practices MCB bank is

making progress.

57


SWOT Analysis

The overall evaluation of a company, s strength, weakness, opportunities, and threats is

called SWOT analysis.

Strength:

The main strength of the bank lies in its services. The other fact that contributes is

approaching to each segment of society .another positive concern that becomes the

strength of the bank is its innovation some others are as follows

Bank reputation:MCB has made a status of a compact economic institutions over 60 years it focus on

growth done enlightening services quality investment in technology and people

developing its extensive branch network and evolving a large and stable deposits based .

Technical management skills:Different department of the MCB bank are developed with technical management skills

different issues are technically managed to avoid any disturbance and to run the business

smoothly.

Customer satisfaction:MCB bank by the customer satisfaction.it enables the customer thorough providing them

appropriate services and guiding them in their investment choices. customer always

reliable and believe MCB.MCB bank believes in building and keeping close relationship

built on supreme care and devotion itself as an compliment to MCB credit.

Promotion effectiveness:MCB has developed a very encouraging promotional principle which create great loyalty

and motivations in employees towards the bank

Team based approach:

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MCB is team of loyal determined and faithful experts who keep quality of services done

outstanding performance and presentation. In MCB bank there established a team

determination and accord among employees projects are accomplished through members

connectively working as team

Continuous improvement:MCB bank held diverse training programs which enables the members or staff upgrade

their knowledge .MCB has taken initiative to introduced new schemes regarding its

product and services .in this way it continuously made improvement in its employees and

services.

Quest for quality:MCB bank always try to give its customers quality product and services to keep them

permanent client of bank.it always uses different channels to improve the quality.

Employee respect and dignity:Every employee in the organization is given due respect and owner irrespective of its

status and level .employee feel proud to be a part of the organization.

Large network of branches:MCB is function by the great net work of 100 plus online branches nationwide MCB

determined constantly to develop and enhanced its branch network day by day to confirm

satisfy and approachability to its customer.

Weakness:Some of weaknesses are as follow:

Less productivity from staffThe bank management is unable to utilize optimum productivity from the staff. The

matter of fact is that staff is skilled and experienced but that are not utilized properly to

gain optimal productivity

Overburdened staff

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Staff is overburdened with unproductivity tasks from the management .employee should

be used when and where required to get maximum output from them. Right man for right

job should be used.

Late sitting trendThe most prominent fault in the bank’s management is that late sitting is becoming the

trend of the bank. Although, overtime or late sitting in necessary for the sake of meeting

deadlines .but late sitting without purpose is of no use.in MCB late sitting is now trend. If

they utilize their proper time then they do not need sit late in the evening.

Lack of organization devotionOrganization loyalty has deficiency between employees. Employees don’t pay attention

to their tasks as they think their job as permanent.

Attitude of seniors towards to juniorsAttitude of seniors has to change toward to junior’s .some time seniors attitude are not

professional. Some seniors get the advantage of their seniority and they treat the juniors

harshly if they do not perform according to their will.

Lack of leadership qualitiesFor the proper performance towards the achievement of organization goals a strong

working environment is necessary and to create this environment senior should play the

role of leader. They should understand the problems of their subordinates and try to solve

their problems and build a strong relationship that results in the achievement of

organization goals efficiently and effectively.

In some areas in the MCB unfortunately there is lack of leadership qualities in the seniors

which produce embarrassment among the juniors

Opportunities:

MCB bank may improve its rupee traveller cheques (RTCs) sales by through for new market positions.it can familiarize debt card system or may adapt the current ATM cards into a whole debt card. House financing sector can be targeted to maximize the profit.

MCB bank enter into contract with other banks to use each other ,s ATMs which will result in an increased accessibility to MCB customers and customers of other banks as

60


well as all around the world settlements money are strictly observed so as the money paid may not fall in hands of thus termed extremists for that all predictable money filtering done HUNDIES have been still there is an opportunity for MCB to spread its branch network to several countries highlighting mostly on introducing electronic fund transfer services.

Different banking courses can be offered for improving of banking staff

Management skillsDifferent management skills courses should be introduced to employees in order to make

them familiar management abilities.

Update courses:Various refresher courses should be conducted for the staff to keep them abreast.

Foreign training:Staff should be sent for some foreign courses in order to known them for global progress

in their respective fields.

IT courses:For staff it is necessary to have knowledge in this it world various IT courses conducted

for the staff.

Threats:Competitions are increasing day by day:

Due to the increase in the number of conventional commercial banks, there is an increase in competition. Also there is a lot of aggressive marketing by the competitor banks .this is also a threat for MCB bank.

Increasing interest rates:Due to increases in interest rate against loans customer and investors cannot get loan

from bank .customer will feel unhappy and they are enable to take much loans which will

decreases the business of bank.

Instability of government policies :61


Government policies changing day by day and government stability is not there.Entrance of foreign banks in local market :Increasing number of foreign bank is entering day by day in local market .which is

increasing competitive market of banking sector.

Weak economic condition of PakistanWeak economic condition of Pakistan is producing hindrance in the way to progress

because people are not in good financial position to do business themselves or to finance

it from the banks.

Unregistered business concern:Some institutions are not registered so they are not bound to adapt all the policies of

STATE BANK OF PAKISATAN. They can make their loaning and inters policies to

attract customers .

Conclusion As I have studied and analyzed MCB bank ltd .i found out this a good bank as its

working, management is concerned.

First of all the reason of this is that there is no directive style in the management of MCB

and which shows that there is decentralization in the bank and every branch manager can

take decision according to the situation.

MCB is providing their customers with wide range of services including online banking.

Virtual banking and some of their new products in the pipeline, include ATM network

etc. shows that MCB bank is taking good care of their customers.

MCB bank made heavy investments, towards enhancing its capabilities in the area of

automation and technology .MCB is well positioned to meet client needs, with improved

competitive advantage.

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During my stay at bank MCB I have observed that some people are overburdened and

some people used to sit idle for most of their working hours. There should to work load

analysis for all employee and work load should be distributed respectively keeping in

views the capacities and capabilities of employees. The bank should improve its online

transaction system and intranet. Bank should improve its online transaction system .new

marketing strategies should developed to attract customers.

More training and developments programs should be lunched in order to clear the

concepts of employees about new products and banking techniques there is need to

develop a good relationship among employees and their seniors.

Recommendations

In this section, you are required to suggest solutions for all the problems or discrepancies

(you have pointed out in critical and SWOT analyses) found in the organization.

In some branches of MCB there is a problem of staff shortage .there are only few

employees who are the be all and end all of the whole branch resulting in burden of work

shortage of staff should be handled timely.

Most of the bank employee are sticking to one seat only with the result that they become

master of one particular job and lose their grip on other banking operation. In my opinion

the entire employee should have regular job experience all outlook towards banking job

rotation is must for making people and assets fir the company

Banks should give some incentives to its employees in order to remove the conflict

between lower and higher officers and should try to improve the working condition of

bank.

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it is human nature goes behind reward and incentives’ while one try avoid from

punishment .likewise in commercial institution like bank this system be introduced with

full force means active smart, educated skilled ,self-spoken and well versed staff personal

,should be rewarded, while on the other hand lazy ,lethargic ,rough dealers and ill-

mannered must be warned penalized and punished.

The period of internship should be divided into the number of department of the MCB the

internee should be given time table mentoring the number of days he has to work at

different places in the bank on the 1st 4 days each department internee should be given

lectures by the officers of the department concerned about working of the department.

Reference & Sources Website Sources:(2011). Human resource management system. Wikipedia. Retrieved from

http://en.wikipedia.org/wiki/Human_resource_management_system

(2011). History of MCB. MCB Bank Limited. Retrieved from

http://http://www.mcb.com.pk/mcb/about_mcb.asp

(2011). Vision and Mission Statement of MCB. MCB Bank Limited. Retrieved from

http://www.mcb.com.pk/mcb/mission_vision.asp

(2011). Product and Services of MCB. MCB Bank Limited. Retrieved from

http://www.mcb.com.pk/psc/personal/default.asp

(2011). Financial Data and Reports of MCB. MCB Bank Limited. Retrieved from

http://www.mcb.com.pk/ir/fin_data_rep.asp

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http://www.mcb.com.pk/ir/fin_data_rep.asp

http://www.mcb.com.pk/psc/personal/default.asp

http://www.mcb.com.pk/mcb/mission_vision.asp

http://http://www.mcb.com.pk/mcb/about_mcb.asp

http://en.wikipedia.org/wiki/Human_resource_management_system

Books:Marc Effron, Robert Gandossy, & Marshall Goldsmith (2003). "Human Resources in the

21st Century". New York: John Wiley & Sons.

(2011)Virtual University MGT 501 - Human resources management.

Extra Source: Colleagues

Operational manager

Branch Manager

Head of Department

Different Hand books

Newspapers

Annexes

At the end of your report, attach all of the supportive material you have used for the

preparation of your report like brochures, forms, newsletters, interviews, questionnaires,

etc.

Annual report 2010

Orientation report

Information from HR department management

MCB brochures

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