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IN THE NAME OF ALLAHWHO IS THE MOST

GRICIOUSAND

THE MOST MERCIFUL

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ACKNOWLEDGEMENTS

All the praises and thanks to AlmightyAllah whose unlimited mercy enabled usto design the project and submit thisdissertation to fulfill the requirements ofPrincipal Of Management.

We express our heartiest thanks to MRADIL ZAMAN our project supervisor forthis guidance, inspiration and healthycriticism towards completion of the

project effectively and comprehensively,without this it would always impossiblefor us to complete this task successfully.

Fantastic Shell

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This Dissertation IsDedicated to Our parents and teacherswho always encourage and inspire us to

learn the Holy Quran, Sciences andbusiness techniques

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Project Report

M SAAD SHAUKATBAU-F07-006

THE UNIVERSITY OF LAHORE

ISLAMABAD CAMPUS

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BBA

CONTENTS

DRAWBACKS.....31 .................................................... 6

.......................................................................................................................................... 8

MCB AS AN ORGANIZATION .................................................................................. 8CORPORATE INFORMATION ....................................................................................10

ORGANIZATIONAL CHART ...................................................................................... 11

HUMAN RESOURCE DEPARTMENT STRUCTURE ............................................... 13ROLE OF HUMAN RESOURCE DEPARTMENT IN ................................................14

MCB ............................................................................................................................... 14

HUMAN RESOURCE PLANNING ..............................................................................16

EMPLOYMENT CATEGORIES ................................................................................... 18WORKING HOUR POLICY .........................................................................................19

Work schedule .................................................................................................................... 19

RECRUITMENT AND SELECTION ........................................................................... 19What laws and regulations shape HRM practices? .............................................................20

What are our HRM needs? ................................................................................................. 20

Where do we find qualified job candidates? ......................................................................20How can we choose the best-qualified job candidates? ......................................................20

How can we ensure employee skills are current? ...............................................................20

What options exist to handle overstaffing? ....................................................................... 20

Vacancy Identification .................................................................................................... 21The need for hiring a person is identified by Branch Manager for a specified branch.

The request is forwarded to the regional manager. And than regional manager forwards

that request to the General Manager, and than General Manager forwards it to theGroup Head (provincial level), and in last it is forwarded to Human Resource

Department. Than it becomes the responsibility of the HR department and it evaluates

that whether the branch needs a person or not. .............................................................. 21Advertisement .................................................................................................................21

Recruitment Sources ....................................................................................................... 21

Selection devices ............................................................................................................ 21EMPLOYEE TRAINING ............................................................................................... 23

Training Approaches .......................................................................................................... 25

Off the job Training ........................................................................................................... 25

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EMPLOYEE ORIENTATION .......................................................................................26

COMPENSATION AND BENEFITS ............................................................................26

Officers/Executives .........................................................................................................27Clerical/No clerical ........................................................................................................ 27

GRIEVANCE MANAGEMENT ................................................................................... 32

STAFF CODE OF CONDUCT ......................................................................................32RETIREMENT ............................................................................................................... 33SUCCESSION PLANNING .......................................................................................... 33DRAWBACKS...

..31SUGGESTION..

..31CONCLUSION..

..32

INTRODUCTION

Today MCB is leading the way in banking technology and

setting new standards for the banking industry; penetratinginto the local market, listening to the needs of the people andeducating them of simple financial products and services thatcreate both value and convenience. Whether it is the 24 hourscash convenience of our ATM network or the easy availabilityof financing for your purchases, complex business financingrequirements or simple opening of account, we have tailored

its products and services to make your life easier. Under Board

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of Directors comes four departments or branches namely,International banking, Commercial Banking, Corporate

Banking, Legal Cell. And the department of HUMAN RESOUREScomes between the board of directors and the four other

departments or branches. The HR department is responsible to

design and plan all the policies and procedures regardinghuman resource. And all of these policies are being designedfor all the four branches, and then the branch manager

becomes responsible to implement these policies. There comesrecruitment cell, which is responsible for regulating and

monitoring the recruitment functions. It advertises new jobs,makes direct and indirect recruiting, it supplies manpower forwork, handles interviews and testing procedures necessary forhiring. The age of retirement at MCB is 60 years. At the time ofretirement employee is allowed to express his or her opinions.

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MCB Banks team of committed professionals is dedicated tomaintaining long term customer relationships throughoutstanding service and convenience

MCB has emerged as one of the foremost-privatized financialinstitutions in Pakistan endeavoring to gear up its operations to meetthe demands of the future.

MCB AS AN ORGANIZATION

.

Understanding

Today, banking all about understanding. Understanding thecontemporary and localized markets. Its about talking to theconsumers; reaching out to them; giving them quality time; its aboutfocused approach and targeted results. Its about communication tofoster lasting relationships. Its about working as a team; having nobarriers, no boundaries. At MCB, everything we do is rooted in ourvalues and true understanding of this diversified market.

At the core of it lies not only an achieving successful result, but thecuriosity to delve into the consumers insights for a better and simpler

lifestyle.

Relationships

MCB would fostered strong bonds with its customers. We wouldunderstand them; their needs. They would feel comfortable with MCB;its their bank; it responds to them; listens to them; partners with them;grows with them. At MCB, banking is all about being there for people,

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making a home in their hearts continuously building relationships onmutual trust and confidence. We understand that relationships aboutexpectations- our product and services are based on our customersexpectations. Be it financing for personal or business related needs.Funds transfer and trade related facilities or need for different types of

deposit accounts, We would offers you a variety of products andservices customized to satisfy your individual needs.

Technology

At MCB, technology has a direct relation with your needs; it is a meansfor creating value and convenience for the customer. We have investedheavily into strengthening its technology backbone. MCBS strength liesin providing a technological base at the grass roots level of the societywith a challenge to educate and assimilate such systems across vastcultural and economic backgrounds.

Convenience

Convenience is what the customer is looking for; and this is what we atMCB are continuously striving to provide. Whether it is the 24 hourscash convenience of our ATM network or the easy availability offinancing for your purchases, complex business financing requirementsor simple opening of account, MCB has tailored its products and

services to make your life easier. We know the particular needs of itsdiverse customer base and continuously develops products andservices that fulfill these needs.

Reliability

With a strong financial base, a promising team and the right resources,we have proved to be a reliable partner indeed. We understands thespecial needs of the business, trading and agricultural sectors. Wewould strategically locate branches in small towns and cities and

provide them warm services and support they require to successfullyachieve their business objectives. We would strongly positioned to leadthe banking sector in the new millennium. You can feel safe in ourhands

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CORPORATE INFORMATION

Board of directors:

Mr. Tariq Raffia

Sheikh Mukhtar Ahmed

Mr. Mohammed Arshad

Mr. Shahzad Saleem

Mr. Raza Mansha

Mr. Sarmed Amin

Mian Umer ManshaMr. Mushtaq Ahmed Malik

Mr. Mohammed Aftab Manzoor

President & Chief Executive .

EXECUTIVES

Main Muhammad Mansha

(Chairman and chief executive)

Mr. S. M. Muneer

(Vice Chairman)

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ORGANIZATIONAL CHART

President

Board of

Directors

Human Resource

Development

International

Banking

Commercial

(consumer)

Banking

Corporate

BankingLegal Cell

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HIERARCHY OF MANAGEMENT

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HUMAN RESOURCE DEPARTMENT STRUCTURE

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Human Resource

Development

CMDCredit

ManagementDepartment

Recruitment Cell Staff Affairs Budgeting

CAD RAM Loans Benefits

Remune-

ration

Purchase

of new

Premises

Staff

Matters

Recruitment

Expemnses

ROLE OF HUMAN RESOURCE DEPARTMENT INMCB

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As shown in the organizational hierarchy that under Board of Directorscomes four departments or branches namely, International banking,Commercial Banking, Corporate Banking, Legal Cell. And thedepartment of Human Resource comes between the board of directorsand the four other departments or branches. Thus it is clearly showing

that Human Resource Department acts as a bridge or mediatorbetween the companys core departments.

The HR department of MCB is being head by Vaqas Ahmed Bhatti.The HR department is responsible to design and plan all the policiesand procedures regarding human resource. And all of these policies arebeing designed for all the four branches, and then the branch managerbecomes responsible to implement these policies. The HR departmentmakes all policies ranging from recruitment till retirement. It isresponsible to carry out and propose feasible employee benefits plan,feasible both in terms of company and in terms of employees. It also

gives a lot of importance to training needs of employees.

Any branch, which has any problem, will go to the HR departmentdirectly and HR will solve that problem. The HR department is involvedand relied upon heavily when making corporate planning.

Human Resource Department

With in the HR department come several different departments asshown in the hierarchy of HRD. Each department is further elaboratedbelow:

Credit Management Department

Credit Management Department is the most earning department forany bank, and it is also true for MCB. Special appointments are made inCMD like hiring of Credit Management Officers. These persons areeither Charted Accountants or MBAs from top universities. Their job isto maintain security documents and process all the documents of eachbranch in the head quarter and to assess the risk factors to the bank.

Basically this is not be included in HR hierarchy, but the reason MCB

has this department under HRD is because the head quarter of MCBdirectly hire these persons. Only HR department has control over themand others have no say in this.Two other departments working under CMD are:

Credit Administration Department

Risk Asset Management

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Recruitment Cell

There comes recruitment cell, which is responsible for regulating and

monitoring the recruitment functions. It advertises new jobs, makesdirect and indirect recruiting, it supplies manpower for work, handlesinterviews and testing procedures necessary for hiring.

Staff Affairs

The staff affairs department is concerned with regulating the policiesregarding employees. It handles all the affairs of the employees. And itworks for the benefits of the employees.It further has two departments one is loan and the other is benefits. The loan department considers making policies for giving loan to

employees on an agreed markup rate. It works for the welfare of theemployees. The Benefits department makes all policies for benefitingthe employees like salary packages, provident fund contribution,medical allowances, conveyance allowances, compensation etc.

Budgeting

This department assesses the needs of budget required to run out theHR functions. It allocates certain amount of budget each year to the HRdepartment. It is responsible for remuneration, purchasing and sellingassets, it provides finance to meet the expenses of staff matters, and it

is required to provide funds to the recruitment cell and staff affairsdepartments for recruiting expenses and benefits respectively.

Budget Allocated to Human Resource Department

MCB emphasizes on providing maximum benefits to the employees. Soa fair percentage of budget is allocated to the department. Thepercentage changes accordingly from year to year based on activitiesHR is performing.

HUMAN RESOURCE PLANNING

Human resource planning is the process by which managementensures that it has the right number and kinds of people in the rightplaces, and at the right times, who are capable of effectively andefficiently completing those tasks that will help the organizationachieve its overall objectives. Human resource planning, then,translates the organizations objectives into the quantity and mix of

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workers needed to meet those objectives. Human resource planningcan be condensed into three steps:

(1)Assessing current human resources,(2)Assessing future human resource needs, and(3)Developing a program to meet future human resource needs.

Current assessment

It typically begins by doing a job analysis. This defines the jobs withinthe organization and the behaviors that are necessary to perform thosejobs. What minimum knowledge, skill, and abilities are necessary forthe adequate performance? How do the requirements compare? Theseare questions that job analysis can answer.

Information gathering through job analysis allows management to drawup a job description andjob specification. The former is a writtenstatement of what a jobholder does, how its done, and why its done. Ittypically portrays job content, environment, and conditions ofemployment; the job specification states the minimum acceptablequalifications an incumbent (in office) must possess to perform a givenjob successfully. It identifies the knowledge, skills and abilities neededto do the job effectively. The job description and job specification areimportant documents when managers begin recruiting and selectingnew hires. The job description is used to describe the job to potentialcandidates. The job specification keeps the managers attention on the

list of qualifications necessary for and incumbent to perform a job andassists in determining whether candidates are qualified.

Future assessment

Future human resource needs are determined by the organizationsobjectives and strategies. Demand for human resources is a result ofdemand for the organizations products or services and levels ofproductivity. On the basis of its estimate of total revenue, managementcan attempt to establish the number and mix of human resourcesneeded to reach those revenues. This information is then adjusted to

reflect gains or losses in productivity based on changes in technology.Automated equipment, computerization, reengineering, and processredesign have made it possible for companies to generate greateroutputs with less labor input.

Developing a future program

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After it has assessed both current capabilities and future needs,management is able to estimate shortages both in number and kindand to highlight areas in which to organization will be overstaffed. Aprogram can then be developed that matches these estimates withforecasts of future labor supply.

EMPLOYMENT CATEGORIES

The privatization of MCB in 1991 has led to decrease the number ofemployees working in the organization. In 1991 around 14,000employees were working. In 2002 the total number of employeesworking in the organization was 10,926. MCB after privatization hasgradually decreased their number of employees working with them.

There are three types of employees working in MCB:

Contractual employees

The contract of these employees is renewable each year. MCB furtherhave contractual categories of employees namely,

o Annual renewal

o Fixed Contract

Permanent employees

These are the full time employees working with MCB and theorganization relies heavily on these employees for the performance.Permanent employees are further categorized as under:

o Clerical /Non clerical

o Officers

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Officers Grade 1

Officers Grade 2

Officers Grade 3o Executives

Appraisal Based Employees

These employees are also contractual based but the only difference isthat their contract is automatically understood to be renewed at theend of each year on performance.Notes:The ratio of contractual and permanent employees is 30 % and

70 % respectively.

Total 5 % females are employed in MCB.

WORKING HOUR POLICY

Working hours are from 09:00 am to 05:00 pm for weekdays

On Saturday the working hours are from 09:00 am to 1:45 pm

Work schedule

09:00 am1:00 pm 1:00pm-2:00pm2:00pm-5:00pm

Notes:

There is no over time policy and no pay will be given forworking after the prescribed time

RECRUITMENT AND SELECTION

Human resource decisions are very important. All HRM policies and

practices must comply with the laws and regulations of the country,state, or province, in which the company operates. The HRM processactually begins with human resource planning. It is where we will learnthat either the company will need to hire additional employees or, ifoverstaffed, lay off employees (decruitment). Recruitment leads toattempting to select. The best applicant from among those recruited.Decruitment leads to having some people leave the organization.

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Common Core Lunch Break Common Core


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HRMs primary issues can be seen as answers to six questions:

What laws and regulations shape HRM practices?What are our HRM needs?Where do we find qualified job candidates?How can we choose the best-qualified job candidates?How can we ensure employee skills are current?What options exist to handle overstaffing?

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Regulatoryenvironment

Potential

job

candidates

Humanresource

lannin

Recruitment

Decruitment

Selection Performance

appraisal

Rewards

Training

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Vacancy Identification

The need for hiring a person is identified by Branch Manager for aspecified branch. The request is forwarded to the regionalmanager. And than regional manager forwards that request to theGeneral Manager, and than General Manager forwards it to theGroup Head (provincial level), and in last it is forwarded to HumanResource Department. Than it becomes the responsibility of theHR department and it evaluates that whether the branch needs aperson or not.

Advertisement

The advertisement is done in newspapers and the name of theorganization is mentioned. The applications are only invited throughPost Office Box number.

Recruitment Sources

Recruitment is the process of locating, identifying, and attracting

capable applicants. Which sources management uses depends on thetype or level of the job and the state of the economy. The greater theskill required or the higher the position in the organizations hierarchy,the more the recruitment process will expand to become a regional ornational search. There are two sources of recruitment:

Internal Recruitment (Negligible)o Current Employees

o Former Employees

External Recruitment (Major)o Direct Recruitment (Advertisements)

o Indirect Recruitmento Employee Referrals

o College Recruiting

o Customers

Selection devices

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Branch

Manager

Regional

Manager

General

Manager

Group

HeadHRD


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Following are the selection devices, which are being adopted inMCB.

1. The application2. Test

3. Interviews

1. The application

MCB requires handwritten applications from a candidate who isapplying for the job. The reason for requiring hand written application isto check and verify it when the candidates are giving tests. Aftergetting applications the HR shortlists the candidates. The short-listingagain is done through checking the hand written applications.

Note:

Graduation is necessary for applying a job in officers rank A bond is singed by officers for working minimum of

3 years

MCB hires 450 recruits per year

2. Test:

MCB while hiring a new person relies heavily on the test. EvenInterview is considered to be a formality that is just fulfilled, aspointed out by one of the employees of the organization. The test is

based on objective and subjective approach and it includes questionsregarding

basic general knowledge, computer literacy, business and accounting.A person scoring good in test has 85% chances of getting selected.

3. Interviews:

The interview panel consists of 5 members. And the interview is notvery formal; they have an informal type of interview. And they definedthe word Informalas, where the candidate is made feel easier while

answering questions. The interview panel/committee consists of 5 members as alreadymentioned, and these members include following persons fromdifferent departments:

One person from Board of directors

One person from International Banking

One person from Commercial/Consumer Banking

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One person from Corporate Banking

One person from HR department

The main consideration in interview is given to:

Academic Records Written and Verbal Skills

Physical Appearance

Probation Period:

The probation period of MCB is from 4 months to maximum of 9months.

Reference Check:

After all the selection process is done the HR carries out a referencecheck. It is mostly done in case of new employees to confirm theirposition if they had been working with other organizations.

EMPLOYEE TRAINING

Present oriented training, focusing on individuals current jobs. Trainingis a learning experience in that it seeks a relatively permanent changein an individual that will improve the ability to perform on the job. Wetypically say training can involve the changing of skills, knowledge,attitude, or behavior. Training can make a real difference in anorganizations bottom line. And OBL strongly believes in training anemployee.

Importance of training

Money spent on training can provide big returns to the company.Intensified competition, technological changes, and the search forimproved productivity are increasing skill demands on employees.Skills deteriorate and can become obsolete.

Assessing training needs

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Ideally, employees and managers alike should be continuallyundergoing training to keep their skills current. In reality, feworganizations have not made a commitment to providing their staffwith continual learning, nor do employees voluntarily take the initiativeto seek out training opportunities. And OBL is one of them. Training

is provided on an as-needed basis, and the decision as to when thatneed arises lies with individual managers. The manager while assessingthat whether the individual needs training or not ponders on thefollowing points:

New equipment or processes are introduced that may affect anemployees job.

A change is made in the employees job responsibilities.

There is a drop in an employees productivity or in the quality ofhis or her output.

There is an increase in safety violations or accidents.

The numbers of questions employees ask or their colleagues

increases. Complaints by customers or co-workers increases.

EMPLOYEE DEVELOPMENT

Future-oriented training, focusing on the personal growth of theemployee. It focuses on the jobs in the organization. OBL ensures thatemployees have the necessary skills to perform future jobs. Because ofthe new technology and the quality movement in this field, OBLbelieves in work performed by teams. Hence, managers and employeesdevelop skills to be successful in a team environment. Because manyemployees value work that is personally rewarding and does notinterfere with non-work activities, the HR management also helpsemployees identify their work interests and goals and cope with issuessuch as balancing work and family roles. Human Resource deals with:

Ensuring that employees have the skills needed to perform theircurrent job

Preparing employees for future work roles

Identifying employees work interests, goals and values and othercareer issues

Employee development is a necessary component of acompanys efforts to improve quality, to meet the challenges of

global competition and social change, and to incorporatetechnological advances and changes in work design.

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Training Approaches

The Most popular training and development methods used byorganizations can be classified as either on-the-job or off-the-jobtraining. This preference can be attributed to the simplicity and,usually, lower cost of on the job training methods. However, on the jobtraining can disrupt the workplace and result in an increase in errors aslearning proceeds. Also some skill training is too complex to learn onthe job. In such cases, it takes place outside the work setting.

(1) On the job training:

Popular on the job training methods include job rotation and mentorrelationships. Job rotation involves lateral transfers that enableemployees to work at different jobs. Employees get to learn a widevariety of jobs and gain increased insight into the interdependencybetween jobs and a wider perspective on organizational activities. Thenew employee works under the observation of an experienced worker,who acts as a model whom the newcomerAttempts to emulate. Both job rotation and mentoring apply to thelearning of technical skills. Interpersonal and problem solving skills areacquired more effectively by training that takes place off the job.

Off the job Training

There are a number of off the job training methods that are used tomake available to employees. The more popular in practice with OBLare classroom lectures, videos, and simulation exercise. Classroomlecture are well suited for conveying specific information. They can beused effectively for developing technical and problem solving skills.Interpersonal and problem solving skills may be best learned throughsimulation exercise such as case analyses, experiential exercises, roleplaying, and group interaction sections, complex computer models, areanother kind of simulation exercise, which in this case is used to teach

technical skills. Off the job training can rely on out side consultants,local collage faculty, or in house personnel.

Notes:

OBL has employed permanent lecturers. The principal of StaffCollege is the Senior Vice President.

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Existing Employees are also called for to give lectures so thatthey can better give the practical experience they are having.

The job is rotated after an employee has worked maximum 3years for a particular post

Every branch has a residual auditor who monitors and judges the

employees and can inform the branch manager about his or heractivities and thus the job can be rotated

The training comprises of normally six months, and there is amixture of on the job and off the job training. The employee isfirst given lectures on International Banking for one month thansend to work (on job training), than again he is called back forCommercial Banking lectures, and then sent for on job training(one month), after this he is again called back for CorporateBanking Training for lectures.

The existing employees time period for training is differentaccording to the needs

OBL works on the following types of training:

1. Basic literacy skills2. Technical skills

3. Interpersonal skills4. Problem solving skills5. Ethical training

EMPLOYEE ORIENTATION

The new comer is informed about the company and its policies.Following information is provided to the new comer:

The new comer is given copies of necessary documents

He is informed about the department he will be working in

He is informed that whom he has to report

His immediate supervisor

Information Overload is avoided and the working policies areintroduced gradually.

COMPENSATION AND BENEFITS

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Besides interesting work, pay and benefits are the most importantincentives that companies can offer employees in exchange forcontributing to productivity, quality and customer service. Also, payand benefits are used to reward employees membership in thecompany and attract new employees. The positive influence of new

work designs, new technology, and the quality movement onproductivity can be damaged if employees are not satisfied with thelevel of pay and benefits or believe pay and benefits are unfairlydistributed.

Wages/Salaries Plan

Wages and Salaries administration is one of the most importantManagerial function, it deals with all aspects of employeescompensation. Wages/Salary is the remuneration paid to theemployees in return for their services.

It can save an organization cost involved with high turn over whileattracting, retaining and motivating capable and productive employees.It is a means of measuring the relative value of a job to anestablishment; with this objective the most highly valued jobs toreceive the highest pay and lowest values to receive the least. Suchmeasurements can be used as a foundation for determining andequitable wage/salary structure.

The jobs are being evaluated on the basis of mental and physicalefforts and accountability that is why the jobs are grouped in to grades

according to measurable difference in leaves of duties andresponsibilities.

MCB has determined its Wages/Salaries structure to attract, retain andmotivate quality employee keeping in view the local market andfinancial commitment of the establishment.

Pay Structure

MCB is fulfilling the minimum wage rate as required by law. Followingare the components of pay structure given to employees in RS. The

basic salary differs from job to job. All the percentages in the tablegiven below are of Basic Salary. Minimum Basic Salary is RS 4,260

Salary chart:

Components Officers/Executives Clerical/No clericalBasic Salary As per grade As per gradeCost of living 32.5% 15%

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AllowanceUtility Allowance 10% -Medical Allowance 3.5% 5.5%ConveyanceAllowance

1,000 600

House Rent 45% 80%

Note:

Contractual Employees are paid differently; this packageis only available to permanent employees.

Following are the benefits given to employees by MCB:

Bonuses

When MCB was nationalized following amount of bonuses where paid to

the employees:

Officers:o 4 bonuses per year, i.e. 4 bonus basic salaries

Executives:o 4 bonuses per year, amount as bonus: of basic salary

Clerical/Non- Clerical Staff;o 3 basics and one gross salary

But after privatization this systems is removed and replaced withpercentage system. And now bonuses are given once a year based onperformance evaluation.

At grade A+ 25%

At grade A 20 %

At grade B 15%

At grade C 10%

Loans

Loan facility is given only to those whose basic salary is equal to or

more than RS. 8,000. There are three types of loan given to employees:

Car Loan:o The limit for providing this kind of loan is now increased to

RS 450,000o The markup rate has been reduced as compared to

previous years from 3 to 4 %. The markup rate previouslyapplicable was 10 %, and now it is brought down to 6.5%

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House Building:o The house building loan is provided only to those who have

worked at least for 3 years with the bank regularlyo There is no limit for this type of loan

o The markup rate is 5 % for officers and executiveso The markup rate is free for clerical and no clerical staff

o In case of death of an employee before retirement the

whole of house building loan is waived off.

Computer Loan:o For officers the markup rate is 6.5%

o No markup rate for clerical and non clerical staff

Medical Facilities

Previously medical facility was provided to the whole family ofthe employee including parents, but now it has just beenconfined to the employees wife and children.

MCB has no prescribed hospital for employees, and employeescan go as per their wishes

The bill goes to the Medical Wing and normally whole of the billis reimbursed to the employees under normal circumstances

Insurance

The company from which MCB have insured their Group andBranch insurances is Brinks Insurance Company

Whole of the branch is insured and whole of the cash is alsosecured

Employees are not to worry in case of any mishap like theftbecause cash is insured

If death occurs, group insurance is also given apart from lifeinsurance

The insurance company that insures the employees of MCB isEFU Insurance.

Pension Plan

Pension is for permanent employees and is given only to thoseworkers who have worked for more than 10 years

It is 8.33 % of the gross salary

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When pension is given, medical and house rent are still the partof the pension

Vacations

For officers:o There are 12 casual leaves and 20 privilege leaves

For Clerical/Non Clerical:o 20 casual leaves

o 30 privilege leaves

Leave Encashment

For permanent employees:o Leave encashment is given at the time of retirement only

for privilege leaves.o Leaves will be accumulated up to 90 days

For Contractual:o Leave encashment is refunded after 2 years.

Non-Cash Benefits

MCB gives two types of non-cash benefits in the form ofincrements and cash prizes

Overtime Facility

MCB provides no overtime facilities to its employees

Provident Fund

Equal contribution is made both from employer and employee The amount contributed towards provident fund is 8.33% of basic

salary and the same amount is also contributed from employer

Loan facility can be taken against provident fund not exceeding80%

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Stock Option

The employees of MCB are allowed to take sharesbut these shares are offered only at market value nodiscount is given to them. But while giving sharesfirst preference is given to the existing employees.

Traveling Benefits

Officers and Executives are allowed for the traveling benefits and theexpenses are being bared by MCB, only for official visit.

Advance Salary Payment

Employees of MCB are entitled to receive 4 months basic salary asadvance

EMPLOYEE DEVELOPMENT

MCB ensures that employees have the necessary skills to performcurrent and future jobs. Because of the new technology and the quality

movement in this field, MCB believes in work performed by teams.Hence, managers and employees develop skills to be successful in ateam environment. Because many employees value work that ispersonally rewarding and does not interfere with non-work activities,the HR management also helps employees identify their work interestsand goals and cope with issues such as balancing work and familyroles. Human Resource deals with:

Ensuring that employees have the skills needed to perform theircurrent job

Preparing employees for future work roles

Identifying employees work interests, goals and values and othercareer issues

Employee development is a necessary component of acompanys efforts to improve quality, to meet the challenges of

global competition and social change, and to incorporatetechnological advances and changes in work design.

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GRIEVANCE MANAGEMENT

Grievance is any dissatisfaction or feeling of injustice in connectionwith ones employment situation that is brought to the attention of

management.

Handling Conflicts

Personal conflicts occur when two or more parties have opposingattitudes or approaches to a particular situation, issue or person.Obvious sources of conflict range from a difference of opinion,problematic working conditions or unrealistic work expectationsthrough discriminatory behavior, to poor communication or non-compliance with organization norms or values.

Conflict can occur between a member of staff and the manager,between two or more members of a team, or between departments,sections or managers. The options available to the HR management areto apply grievance procedures, disciplinary measures or mediatebetween the parties.

In MCB people as such do not have big conflicts, as, pointed out byone officer. But whatever conflicts are their Human ResourceDepartment tries to solve them out with best efforts. The procedure forhandling Conflicts is through Legal Cell. It also depends on the size ofthe matter. At first Regional Manager tries to solve the problem itself

but if the matter is out of control Legal Cell is notified.

STAFF CODE OF CONDUCT

The staff code of conduct is designed and implemented to ensure thatthe company operates efficiently and effectively. Following are someof the requirements that needs to be ensured by the employee:

The employee shall not disclose any confidential information of

the organization to any third party.The employee are required to be at office in time & punctual

On termination of service the employee will immediately returnto the organization electronic information, records, papers orother property in its possession belonging to the organization

In case of leaves and absence from work, employees are requiredto follow the formal procedure.

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In case of breach of conduct, following action will be taken bythe legal cell:

Legal Cell will be notified about the misconduct of the

employee and it will take action against the employee.If necessary the employee will be suspended with pay hold tillthe inquiry is completed.

Explanation call will be given to the employee to prove his partof point.

If found guilty the employee will be terminated by the Bank.

Note:The employee can only be suspended maximum for seven days

RETIREMENT

The age of retirement at MCB is 60 years. At the time ofretirement employee is allowed to express his or her opinions.

SUCCESSION PLANNING

The succession planning is done when the employee is leaving.An official at MCB informed us that it is more or less eyewash.The Bank on its own will appoints some one at his or her place.The person who is leaving have no say it this. The Bank as per

wishes appoints a person who has contacts.

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Critical AnalysisAnalysis is the most important part of the report, because it depends on the lead to goodrecommendation for the improvement of the existing conditions, therefore in MCB I have

observed much of thing and have analyzed them to the extreme of my effect. MCBs

critical analysis are as following.

The main objectives of MCB is to provide improved service to the customer,but now the bank seems to fail to achieve its objective, its lengthy procedures

as compared to new private or foreign banks cause problems for customers.

MCB being an established bank does not face the high competition in themarket, in long run it will not be favorable for the bank.

Top-level management is having a lot of influence in all decision-making, and

they always dont consult the lower level management, therefore the top-levelmanagement will not have adequate data about the problems organize at lower

level. So authority should be given to the lower level management as well as

responsibility.

MCB being an established bank up to now the old traditional procedures have

adopted in most of the branches.

MCB is not keeping pace with changing of new market environment, the mainreason beyond it the lack of new policies, and also the existing policies and

procedures are remained unchanged for a long period of time.

In the advances Department of MCB, the process of loan sanctioning is very

lengthy compare to the other banks which affect the customers, some timesavailable customer in big need of money does not get loan in time only due to

this lengthy process.

The advances activities in MCB is not free from political influence, the

politicians put on pressure from the sanction of the loan in the favor of their

own persons, there arise too problems due to this influence, first the bankbecomes unable to get good security due to which the loan recovery from suchpersons become very hard, secondly these politicians do not use these loans for

productive purpose but they only use it for private purpose.

The communication between the employees or from top to bottom or frombottom to top is weak. Decision-making is also slow.

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In the remittances department some time transfer of money telephonically

without the receipt of any legal document, although they pass test on phone

but it is vary risky, and there is a big chance of fraud.

DRAWBACK

1. MCB is only advertised the job in only newspaper.2. MCB are not accepting online C.V.3. MCB provides no overtime facilities to its employees.4. There is no medical checkup at the time of hiring.5. Only point method is used for job evaluation.6. In this the foreign experts are not hired.7. They are not advertising in the advertising agencies.8. Overstaffing is one of the major problems of MCB. Now MCB is

offering

different golden handshake scheme to reduce its employee. Thiscan cause

negative impact on working employee.9. MCB is reducing its branches. This can cause negative effect on

workingemployee.

10. In some potential areas ATM is not present.

SUGGESTIONS

1. MCB should have to advertise in internet.2. There should be acceptance of online CVs.3. Overtime facilities should be given to the employees.

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4. At the time of hiring there should be medical checkup of theapplicants.

5. For job evaluation ordering method should be used.6. It is better to hire the foreign experts.7. MCB should advertise in the advertising agencies.

8. MCB has opportunity to install ATM all over the country toProvide 24 hour cash facility to its customers.9. MCB has opportunity to online all its branches to facilitate

E-Commerce.

CONCLUSIONIt is evident from this report and the financialstatements of MCB that it is making progress byleaps and bounds. The profits of MCB have grownconsiderably during the last few years and this trendis expected to continue into the future. Therefore, weconclude that MCB has a very prosperous presentand future, which assures the shareholders of wealthmaximization. Side by side of it I think that if bankwould be able to cover and control on the abovementioned recommendations then it would be in sucha situation that will really lead it towards the road of

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prosperity, development and integrity. And with theabove mentioned sentences I think there is too faultof the customers and in order to make the properworking of the bank the customers should also

cooperate with the bank which will be really a good,ambitious and diligent condition for the bank. Andthen bank will be really in such a situation andposition to compete its competitors in the country aswell as on international level.

p.o.management

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