final report of soneri bank

Soneri Bank Limited

Human Resource Management i

Soneri Bank Limited

MBA(M)

April 26, 2008

Human Resource Management ii

1. Sheema Barkat (1528)2. Hina Raja3. Azra

MR.EKHALQUE AHMED

Human Resource Management

Soneri Bank Limited

TABLE OF CONTENTS

PREFACE..................................................................................................................................................iEXECUTIVE SUMMARY........................................................................................................................SONERI BANK LIMITED - A BRIEF OVERVIEW...........................................................................1BANK VISION.........................................................................................................................................1BANK MISSION ......................................................................................................................................1HUMAN RESOURCE MANAGEMENT OBJECTIVES ..................................................................3HUMAN RESOURCE PLANNING.........................................................................................................5 JOB ANALYSI&DESDIG………………………………………………………………………………. REASONS FOR REVISING Job description……………………………………………………..MODEL OF COMPETENCY SYSTEM…………………………………………………………………………………………………RECRUITMENT AND SELECTION PROCESS…………………………………………DIAGRAMMATIC FLOW OF PROCESS

TRAINING AND ORGANIZATIONAL DEVELOPMENT............................................................13..................................................................................................................................................................13

COMPENSATION FOR STAFF MEMBERS....................................................................................24FUNCTIONS...........................................................................................................................................24STAFF ANNUAL PERFORMANCE APPRAISAL AND SALARY INCREASE PROGRAM..........25

COMPENSATION FOR FACULTY MEMBERS.............................................................................27FUNCTIONS...........................................................................................................................................28 SALARY STRUCTURE........................................................................................................................28OTHER INCENIVES..................................................................................................................................................................30PERSONNEL RECORDS AND BENEFITS ADMINISTRATION.................................................32

PERSONNEL RECORDS.....................................................................................................................32FUNCTIONS.......................................................................................................................................33

CONCLUSION.......................................................................................................................................40

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PREFACE

In this report, we have tried to present an insight into the human resource management practices of Soneri

Bank Limited This report provides a brief overview of the organization and its philosophy regarding

human resource management...

Information provided in this report is based on the information collected through meetings and personal

interviews with various personnel at Soneri Bank limited

We are deeply grateful to Mr.Anwer Ali Incharge of the Personnel Administration for their immense

support and assistance in provision of data, out of their busy schedules and providing us valuable

information of their Human Resource Division. Without their support, this report would not have been

possible.

Last but not the least, we would like to express our gratitude to our course instructor, MR. Ekhalque

Ahmed for her guidance and for giving us this responsibility that has enhanced our knowledge immensely.

Sheema Barkat (1528)

Hina Raja ( )

Azra ( )

Human Resource Management i

Soneri Bank Limited

Executive summary

Our main objective of this report is to highlight All Human Resource management process of Soneri bank Limited. To identify flaws of the process and recommend corrective plan to increase effectiveness of the process.

Human Resource division of the Soneri bank Limited has an objective to attract, recruit, retain, select, trained and provide compensation benefits in order to improve the high quality individuals at all levels to fulfill the manpower need of the bank and develop an effective and committed workforce motivated for attaining goals and objectives of the bank.

Recruitment policy of the bank is particularly aimed on selecting right type of people for the right job and the placement of the staff in accordance with their skill and qualifications and need of the bank to ensure the optimum outcome of the bank.

Selection process of Soneri Bank Limited starts with policy making that is how the selection of an individual is done in their organization. This policy concludes the use of mental ability test and interview process for the effective selection of candidate. After making the final decision from the interview reference checking and degree verification is done by the bank through their own relevant sources.

Training provide to the employees on the basis of upgrading their skill, knowledge & other abilities in order to reach the desired need of the job. Provide opportunity to the employees to implement their skills &abilities indifferent working scenario.

Performance Appraisal system that motivate employees to increase their efficiencies & remove deficiencies in their performance.Soneri bank Evaluate the appraise performance considering on the basis of five level of performance.

Compensation standard for each level of position depend upon the designation. For the staff level compensation they deal through Performance Appraisal.

The HR Planning of the Soneri bank will cover all the activities which are play key role in organization over all frame work.

Company introduction;

Opened doors for operations in Lahore on April 16, 1992 followed by Karachi branch on May 09, 1992. The bank now operates with 89 Branches spread all over Pakistan including the Northern Areas of the country where no other private bank has ventured so far.

Bank’s Vision

“To be a quality financial service provider, maintaining the highest standards in banking”

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Bank’s Mission

“We thrive to be strong and stable financial institution offering innovative products and services while contributing towards the national economic and social development.”

HUMAN RESOURCE MANAGEMENT PLANNING

Job analysis & Design

They applying selection-based job analysis in order to focus behaviors & task associated with them. They using this job analysis in Soneri bank limited for making decision on selection, compensation performance management & The Soneri Bank applying job analysis in order to identify experience training & other qualifying factors possessed by candidates who have the potential to be the best performers of the job to be filled.

Reasons for Revising Job Description:

Complete the process of revising all job descriptions in the district and develop procedures to require them to be systematically updated every three to six month.

Personal Administration Executive Incharge of Human Resource of Soneri Bank review job descriptions to determine if they accurately reflect the position classification and pay grade.

2. To add more Responsibility/job rotation to motivate staff for other responsibility for that job description reviewed as a part of job rotation.


Strategy Management process

Vision

HR

Mp

lann

ing

Job analysis& design Recruitment Selection

process

Structured & Unstructured interview

Planning OrganizingStaffingLeadingControlling

Training & Development

Orientation

Performance Appraisal

Career Development

Compensation & benefits.

Vision

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3. Other cadre job responsibility change & for that job Description will be reviewed again by the head of the department

4. Effect job description (lack of interest) job description change because of change in work performance review every year.

5. Add& subtract Job responsibility (Lack of performance appraisal

Model of Competency system

Process of recruitment, selection at Soneri Bank Limited:

Recruitment and selection process of Soneri bank Limited mainly focuses on hiring highly competitive individual who contribute towards achievement of overall organizational objectives.

The process of recruitment involves recruiting from internal sources and from external sources. If the person is available within the organization internal recruitment takes place. If there is a shortage of available needs internally than external recruitment takes place.

Recruitment process; starts with employees requisition form received from the department. All employees requisition form is received by human resource division. Human resource division than analyzes the need of the department for hiring an employee. The main focus is on the job analysis of the post, i.e. what type of an individual is needed by the department. According to this job analysis, sources of recruitment are checked and accordingly the process of identifying best candidate for the job starts.

Selection process: Soneri bank starts with policy making that is; how the selection of an individual is done in their organization. This policy concludes the use of mental ability test and interview process for the effective


Leadership

Environment Roles Competencies Relationships structure

relation

TrainingEffective productivity measures

Development Work design training Recruitment

EvaluationReward sys

sys

Vision

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Soneri Bank Limited

selection of candidate. After making the final decision from the interview, reference checking and degree verification is done by the bank through their own relevant sources.

Once the applicant fulfills all the criteria of the bank he is than selected for the job. Job offer is made by the bank. If the candidate accepts the job than the appointment letter is given to him.

After letter is received by the candidate socialization process begins. In this process orientation is given to an employee regarding bank and their employees. The main purpose is to make applicant familiar with the people and the processes of the organization.

Diagrammatic flow of process

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Employee requisition

form

Human Resource

Department

Sent toIdentify need of

department

Check sources of recruitment

Internal sourcesExternal sources

Collection of resume

Screening of Resume

Filling up of employment

application form of screened applicants

Analyzing information of the application form

Conduct an employment test

Rating are compiled and applicants are selected for interview

Interviewing candidate

Selecting candidate and check reference and degrees

Job offer made

Appointment letter

Accepted

Employee orientation

Employee retention

Employee turnover

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Process starts with employee requisition form received from different departments by Human Resource Division. Human resource division than analyzes the need for different department and starts the process of recruitment.

Employment requisition form:

When ever the need of new hiring arises at any level the concerned divisional / zonal authority has to fill out employee requisition form. This form is signed by divisional head and submitted to the human resource division. This form is considered as a formal request for a new appointment at any level or category. Form includes the information required to initiate recruitment procedure including job description and specification of the requested position.

The need of the required position is analyzed by human resource division and if they feel that the need doesn’t exist than human resources asks for justification from the concerned department.

Sources of recruitment

Once the need is identified recruitment process starts. It starts with identifying sources of recruitment which are as follows:

Current employees through internal placements Database of solicited and unsolicited resumes Advertisement in suitable newspaper Advertisements on bank’s website References of employees

When ever the need for recruitment arises the first preference is given to the internal employee. If the employee meets the criteria of the new hire than that employee will be considered. If vacant position cannot be filled internally than the bank considers external recruitment. The effectiveness of the source is considered by the bank for recruitment purpose. Internal employees are contacted through email and external employee referral, advertisements and company website.

Resumes received and screened;

Once the source of recruitment is identified, resumes are received from the potential candidates. These resumes are screened through job analysis information. Every individual falling on the criteria is selected for the further process. This subset of candidates is than moved one step forward in the process.

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Employment application form of Soneri Bank Limited

Soneri Bank Limited has a detailed employment application form for the applicants applying for the job. Every applicant who wishes to join the company has to send their resume and once their resume is selected for test they have to fill out an employment application form as per criteria of the company.

Employment application form of Soneri Bank Limited is a very detailed form. It includes all the relevant information regarding personal data, family history, educational record, employment record, training record, financial liabilities and references. All these information show that whether an applicant is fit for the job and meeting the criteria of the company.

Soneri Bank Limited gives emphasis on family history while selection of candidate. According to them family history shows the reliability of a person and his roots. Their application form also focuses on detailed family history. This includes information about brothers, sisters, parents and the dependents of the applicant.

Second important aspect that Soneri Bank limited focuses on is references. Reference gives the information about the personal contacts. Its shows how well the employee is accepted in the market. It also shows social activeness of the person. These references are checked through relevant sources of the bank. One of the important aspects that Soneri Bank Limited focuses on through this reference is honesty of a person. If the person mentions that he/she knows someone who has a very good image in the market, & this information is deems incorrect when checked by the bank, will make apparent the dishonesty of the candidate.

This detailed information about the applicant is useful for the bank at every stage that is, during recruitment, selection and socialization of the employee. Once it is fed into the bank database, is useful for future recruitment and selection procedures. This application form is the standard format for all the applicants applying for a job. Analyzing same information about all the applicants makes it easier for a bank to identify best candidate for further selection process.

Initial screening of applicants is done through this employment application form. At this stage a company compares the job analysis information with the information provided by an applicant. Here the company analyzes fit of a person for the particular job according to the background information and education and experience. If the applicant fulfills the criteria they are selected for the further selection procedure.

There are some of the positive and negative points of the employment application form that Soneri Bank need to consider. In our suggestion some changes are necessary for the form to give more relevant and accurate information about the applicant. The positive points are the strengths of the form and the negative points should be the changes required in the form.

Ensuring that a potential candidate has impressed the interviewer is difficuilt.The candidate needs to excel at each encounter from the resume to the final interview. The company has initiated towards a new trend of letting each candidate know what Soneri Bank looks for in their candidates and judges each candidate on the same set of attributes and therefore removes discrepancies from the selection process.

Selection Process

Selection process includes written test conducted by the bank. The main purpose of the selection process is to identify the best fit for the job.

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Written test:

Application received in HRD shall be scrutinized and short listed and forwarded to the training and management development division for arrangement of aptitude test where ever required. Training and Management Development Division shall forward the resume of successful candidates along with their result sheets to human resource division for selection interviews.

Soneri Bank conduct mental ability test in its selection process. This test mainly focuses on IQ and EQ of an individual. This test also helps to test the knowledge of the candidate regarding job market and the job.

By focusing on only one type of test Soneri Bank restrict its criteria for identifying the best candidate for a job. Judging candidate by only mental ability test cannot gives the true judgment about his performance on work.

Changes to be made in testing method

Soneri Bank focus on just mental ability test cannot give the true judgment. It can improve its format by adding more types of a test or by conducting assessment centers. Assessment center will be more useful for the bank. It consists of series of activities that shows an individual ability to perform the job.

Each activity in the assessment center reflects different aspects of the job. These aspects are determined through job analysis. Individual performance in each activity reflects his performance on the job.

As an assessment center is a detailed process a bank should also consider the cost factor involve. To enhance the effectiveness of the testing method cost consideration plays a very important role. The cost of conducting an assessment center should be predetermined and discussed by the HR in order to identify the problems involved in it.

One of the major advantages of conducting an assessment center is as employees are with the management of the bank for two to three days they become familiar with the people and the environment of the bank. In this assessment centers they also become familiar with the policies procedures and rules of the bank. This reduces adjustment period of the person joining the bank. It also reduces efforts on socialization of employees.

Selection interview;

After the written test selection interview are conducted. These selection interviews are purely marked according to the judgment of the person taking the interview.

Soneri Bank don’t have the interview evaluation form for interviewing an applicant. Bank also has no clear policy for marking or preparing an interview report of an individual. The interviews at Soneri bank are purely summarized on the judgmental evaluation of the interviewer.

Soneri Bank doesn’t follow the structured interview format. Unstructured format of an interview provide an opportunity to ask different types of questions according to the situation and that are more relevant to the job. This type of an interview format followed by Soneri Bank is more flexible than structured format and an individual replies in different situational questions help to identify more appropriate candidate for a job.

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In this type of a format which Soneri Bank is following there is a chance of different types of error on the part of the interviewer. Due to these errors the organization may suffer a big loss. These errors are mainly due to relying on the memory of the interviewer.

Soneri Bank should focus on making a clear policy regarding interviewing a candidate. Proper guideline should be given to the interviewer regarding the policy and how they will judge an applicant. There should be an interview evaluation form for evaluating an applicant. This will reduce many errors on the part of the interviewer.

The interview format that Soneri Bank should follow must be the combination of structured and unstructured interview. In a structured format they should include questions to test the knowledge of an individual and in an unstructured they should include situational questions to check how the individual will respond in a particular situation. Overall that type of an interview format is known as semi structured format.

This policy will help an interviewer while interviewing a candidate as well as HR during recruitment and selection procedures. This policy will also make the process more effective and beneficial for the organization.

1. TRAINING AND ORGANIZATIONAL DEVELOPMENT DEPARTMENT

Soneri bank limited provides training not only to the external candidates but also provide training to the internal department and also ensure that which method of training will deliver Knowledge, skills & abilities to employees.

Soneri Bank limited for the selection of applicants for training purpose they taking the written test of the new candidates. The duration of the training programme is about 6 month. In this duration they provide task to the existing employees to make 4 months training based on the theoretical & as well as practical implementation on their job. They provide on job training to the existing employees to attend training session for the half day and remaining time they perform their job.

But for the new applicants they provide them training and send them to different branches in order to upgrade their learning process in a meaningful manner. The training that Soneri bank provided to the trainees includes.

Remittance Reconciliation Foreign exchange Audit Advances

The Soneri banks not only provide training to the trainees but also give them Stephen with the fixed amount during training duration.

After completing the training by each trainee Hr department take assessment test in order to evaluate each trainee that how much they upgrade their knowledge skills and abilities through training.After completing assessment test they grade each trainee according to the marks they gain in assessment test.

Trainee office grade 3.Executive training grade 2.Junior officer

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OFF-JOB TRAINING:

They provide off job training to the employees though outsourcing like IBP Institute of Bankers bank workshops & seminars but the selection of training nominated by the head of the department


PERFORMANCE APPRAISAL:They conducting performance appraisal for the employees for the purpose of development purpose & for administrative purpose.

Development purpose to judge skills & abilities of the overall performance of existing employees.

Administration purpose appraisal is all about upper level management like senior manager, divisional head.

Management and updating of all Employee Records

Employee record file is opened at the time of selection .This file contain contains all sorts of personal and

professional records which are updated at regular intervals of time. Maintains employee records in both

computerized and manual filing systems. This file contain contains all sorts of personal and professional

records which are updated at regular intervals of time. Through the record file the General manager of the

department evaluate the performance of employee & send report to the HR department.

Hr department categorize the reports of performance appraisal of every employees and make sorting & check it with it past records in order to verify its performance in meaningful manner. In Soneri bank immediate supervisor is responsible for the performance appraisal of the employees.

They have five level of performance grading

Outstanding ……………………. 81%- 100% level A: Results consistently far exceed

Job requirements

Very good …………………….. 61%-80% : Level B: Results consistently Exceed job requirements.

Level C: Good ……………………………. 41%-60% and at times exceeding job

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Requirements/

Average ……………………………21%-40% Level D; Job requirements are Not fully meet.

Poor ………………………….. 01%-20% Level E: Job requirements are not meet Compensation for Staff Members:

This Incharge of personnel department in Soneri bank deals with the compensation of management. The

program for ‘Staff Annual Performance Appraisal Salary Increase’ deals with the performance appraisal

process for the staff members. It has a performance rating system in which it has 5 rating tiers and

performance appraisal form for the staff members and for the management. The department reclassifies the

job or grade or the position of the employee every two-year if the performance remains consistent, and

analyses the existing job and adds new responsibility or specifies the task or reclassifies the grade or

position in the hierarchy of in Soneri bank. They also make direct payment for all level of position

HRA @ 40% of basic pay Utilities @ 10% of Basic pay

DA@ 15% of Basic pay Entertainment @ 8.5 % of Basic pay

Performance Bonus @ 10% of basic pays Medical Allowance @ 8.33%

OTHER INCENTIVES:

Soneri bank maintains the computerize system of recording attendance. There are other benefits such as

medical benefits, retirement & performance bonus deal in benefit section department.

CONCLUSION:

Much of their success can be attributed to the smooth and efficient teamwork, a general willingness to give

and take, to look at the other person’s point of view and to deal honestly and intelligently with whatever

problem that may arise during the course of work. All the departments in Soneri bank

Human Resource Division remain in close contact with each other and supplement each other’s activities

in a properly controlled and effective and efficient manner.

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Training and organizational development department performs its tasks in accordance with the overall

quality vision of the organization and mission of the department. Considerations are observed and every

effort is made to ensure success of training and development programs.

In Personnel records and information is maintained which serves as a guide to recruiters, trainer carrier

planners and other Human Resource specialists. This information of internal employment needs guides

personnel division efforts towards future staffing needs. Managers can groom their employees through

required training and development efforts and employees can prepare themselves form ever-changing

environment.

Soneri bank attempts to give employees a greater opportunity to affect the way they do their jobs and

contribute to over all goals and missions. Employee benefits to insure indiscriminate behavior towards

employ and to orient management towards cost saving, and effective employee relation supplement main

departmental actions and provide improved work environment employee motivation satisfaction and

productivity

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1. TRAINING AND ORGANIZATIONAL DEVELOPMENT

DEPARTMENT


Soneri Bank limited for the selection of applicants for training purpose they taking the written test of the new candidates. The duration of the training programme is about 6 month. In this duration they provide task to the existing employees to make 4 months training based on the theoretical & as well as practical implementation on their job. They provide on job training to the existing employess to attend training session for the half day and remainig time they perform their job.

But for the new applicants they provide them training and send them to different branches in order to upgrade their learning process in a meaningful manner. The training that soner bank provided to the trainees include.

RemittanceReconciliationForeign exchangeAudit Advances

The soneri banks not only provide training to the trainees but also give them Stephen with the fixed amount during training duration.

After completing the training by each trainee Hr department take assessment test in order to evaluate each trainee that how much they upgrade their knowledge skills and abilities through training.After completing assessment test they grade each trainee according to the marks they gain in assessment test.

Trainee office grade 3.Executive training grade 2.Junior officer

Con Confirmation

On successful completion of six months probationary period, the employee

signs permanent employment contract. Personnel record section keeps track of

all employees on probation and prompts manger of the respective department

on the completion of respective department to carry on the formal process.

OFF-JOB TRAINING They provide off job training to the employees though outsourcing like IBP Institute of Bankers bank workshops & seminars but the selection of taring nominated by the head of the department

PERFORMANCE APPRAISAL:They conducting performance appraisal fo the employees for the purpose of development purpose & for administrative purpose.

Development purpose to judge skills & abilities of the overall performance of existing employees.maintains employee records in both computerized and manual filing systems.

Employee record file is opened at the time selection and maintained until ten

years after termination. This file contain contains all sorts of personal and

professional records which are updated at regular intervals of time.

Adiministration purpose appraisal is all about upper level management like

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final report of soneri bank

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