14.

Functions Of HR DepartmentThe Institute of Bankers Pakistan (IBP)

The institute of bankers Pakistan was incorporated in 1951.Until now it has benefited many financial
sector institutions through its product andservices in this concern mainly in field of HRM and
HRD.Advancement in this concern is the recruitment and selection of human resource

for financial institutions.IBP conducts interviews, group discussions and tests according to needs of
respectiveinstitution.Initially State bank of Pakistan was benefited from its services but now major
financialinstitutions and banks can also be benefitedMajor members of IBP are as follows.1.Allied Bank
Limited2.Crescent commercial bank 3.Habib Bank Limited.4.House building finance corp. Ltd.5.Mezan
Bank Limited6.Pak Omen Microfinance bank Ltd.7.Securities and Exchange Commission of
Pakistan.8.State Bank of Pakistan

9.Bank of Punjab

10.Zarai Tarqiyati Bank Limited.11.Bank Islami Pakistan Limited12.First women bank Limited13.Soneri
Bank Limited.14.MCB bank Limited15.Tameer Microfinance Bank Ltd.16.United Bank Limited.

a.(1) HRP

The data about requirements

in

BOP is usually collected on the basis of the informationgathered from the feed back from the various
branches and regional offices.In this process it is usually done those branches also themselves notify that
they haverequirement of staff.Or based on the data collected from the feed back from various branches
and regionaloffices requirements of HRP are assessed.BOP has its own email accounts usually through
which instructions, orders, not

ificationsare conveyed to employees.Similarly they also receive various feedbacks from employees
through these emails.

a. (2)Forecast of employees & Method of forecast

So far as
forecast of employees

is concerned

i.When Shortage of workers Forecasted

When the shortage of workers comes in the BOP, Then usually following met

hods/tactare used

Competitive incentives

Tact of competitive incentives is followed to compel the competitive employeesfrom other banks but
mostly this is seen at the executive level and this tact is less used asscale goes lower with exception that
employees from other banks themselves leave those banks and join BOP because of its better and
attractive packages.

Different Selection Criteria

This tact is also used but this varies as scale and pay varies.Such as more important the post is, they are
stricter regarding selection criteria,In banks although the qualification gets importance, but in order to
fill vacanciesevery post has its own requirements.For example a graduate may be hired in case of
absence of masters thus lowering theselection standards according the required situation.

ii.When Surplus of Workers Forecasted

Amazingly BOP has not yet experienced the major problems of surplus workers,as BOP has not yet
adopted the policies of Golden handshakes, layoffs. But whenexcessive staffs come in any branch then
employees are transferred to accommodate themin some other branches.

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b. Selection processc.Sources of candidates



Internal Recruitment

Yes BOP has the policies of internal recruitment when they are looking to fill t

hevacancies.

Promotions

So far as existing employees are concerned, they are given the opportunity to work onhigher post that is
lying vacant rather then hiring a new employee

External recruitment

At Intermediate Level

At the intermediate level Triple As are hired by banks, these are additional administrativeassistants.

University Fresh Graduates and Masters

University graduates and masters are source of applicants for BOP.But it is to be considered that Banks
do not personally contact these Universities throughsources but applicants have to apply themselves for
internships and jobs.

Unemployed Masters and Graduates

Despite of this unemployed masters and graduates are also a source of applicants for BOP. Unemployed
masters and graduates are recruited through recruitmentadvertisements.

Military Personnel

So far as military personnel are concerned then these are usually army gun mans and justrelated to
security these solicited.

Competitive incentives

Also mostly at the executive level, the competitive employees are welcomed from other Banks. But this
may take place at lower tier as it has been part of practice in bank.


Methods of Recruitment used in BOP.

So far as methods of recruitment is concerned,

Advertisements

Advertisements are most common method of recruitment by the bank. These includewebsites and news
papers.IBP Package in this concern provides its services such as to draft, design and then processthe job
advertisements that are then published in newspapers. It is also released onwebsite of IBP.

Internships

Students are given the

internship

opportunities in the banks..

Selection criteria

In BOP selection criteria varies depending upon the type of job.Such as when it is for Cash officer post,
then his education, competency, skills andabilities are more important,But when it is for security guard,
his experience, and personal characteristics take moreimportance.But when is for executive level, then
experience, qualification, skills and abilities,competencies all of them assume the importance.So
selection criteria vary depending upon what is actually required for job.“Right person for right job” is the
selection criteria for BOP.But the complete selection process is discussed below and its main selection
criteria ismerit that involves passing and clearing all the stages of selection such as preemployment tests,
group discussion and benchmarks of concerned bank and BOP fullyavails services of IBP in this concern.
Final selection list is issued by BOP itself.

a)Screening

In BOP, The selection process starts with initial screening where those applicants that donot meet the
job’s specification and description are screened.IBP Package includes as follows.
•

Receive, Organize, Process CVs/ Job applications

Replying to Questions.

Making the list of eligible candidates

Releasing the admit card

Short listing of candidatesHRG group of BOP also in order to verify the information

provided, they are asked for two reputed people so that they may contact.Even Universities are also
contacted for degree confirmation.

b)Pre employment testing

The key points of IBP Package are observed in the bank which is as follows.

On request of client, IBP makes the examinations papers, and sample tests. It als

ospecifies the weight age for each session.

It contacts the respective bank so that they may give their authorization.

After getting the approval, it designates the examination centers and also appointsthe superintendents,
invigilators and examiners.

The admit cards are printed and dispatched to candidates.

•
A list of eligible candidates is released on the website.

IBP then receives requests of change of centers.

It also receives the complaints such as if some candidate on the website list hasnot received the admit
card.

Such test papers carry following contents

English writing and compression

Maths, logical inference.

General knowledge

Knowledge about banking.

Each part has weight varying between 30 to 40%.

Part 2 and 3 are solved on computer sheets and it grading is done through OCR.

If Bank requires a computer literacy tests then such tests are also conducted andafter compiling them
these are supplied to bank.

IBP usually conduct such test on 8 to 10 centers within the country and 4 to 5centers outside the
country.

The efficient supervision and control is ensured in very clean and friendlyatmosphere.

Admit cards, CNIC and identification slips are checked to confirm the identity of candidate.
•

At the end of the test copies are collected, counted and verified with attendancerecord, packed and send
to IBP Head office.

When IBP Head office receives these copies, then they codify, separate nameidentity slips from copies
and then send to examiner.

Ultimately when results are received then finally these are tabulated, counter checked and
computerized.

When decoding process is completed, the merit list is prepared and finally provided to clients.

Bank then finally does the further short listing as per their discretion.

Then information is released in IBP website.

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c)Group discussion

A topic for discussion is prepared and placed in envelops.

A group consisting of 8 to 10 members is invited to attend a s

ession.

A team of experts then attend each session.

Now this group is asked to pick up 1 envelop and this exciting group discussion process starts.

IBP sends call letters for group discussion to candidates sending it directly throughcourier service.

A panel consisting of 3 members, 1 from IBP and 2 from concerned bank observe andevaluate each
group and then finally they are graded.

When result of group discussion comes, respective bank does further short listing.

d)Interview

Type and Method of interviewing

The next phase is to call for interview those applicants that have passed the test.The interviews involve
both

structured

and

unstructured

pattern where not only jobrelated questions are asked but also few general knowledge and other kind of
questionsare asked from applicants.

Board Interview.

The type of interview that is in tradition of BOP is board interview in whichrepresentatives of the bank
and associated serving institutes usually take the interview.“A senior level panel 2 from bank and 1 senior
expert from IBP conducts the interviewand grades the participants.”
e)Background Investigation

In BOP the background investigation is done that is done by verification of educational back ground from
the universities. Also from the record of police, their criminal record isalso checked.And also previous
employers are also contacted for the verification purposes.Personal reference may be utilized for this
purpose such as the contact number of twonoble persons of your area is asked for.

f)Appointment letters to candidates

Final results are the send to respective bank where further short listing is done by the bank as per their
discretion.

BOP then sends appointment letter directly to the addresses of the successfulcandidates. Note: Recently
appointments are being made on contract basis with suitable salary packages.

g)Probation Period

This is usually done in BOP where the employees are sent to position on the probation period and on
satisfactory work they are made permanent.

h)Post induction Training

BOP Follows IBP packages as under:When the candidates are finally selected, they are asked to enter
into post inductiontraining varying between 2 weeks to 10 weeks. Post induction training program
aredesigned after consultation with the concerned bank by IBP.The main purpose of this training is to
bring following development.

Technical development

Personnel developmentMajor objective of these training are

e.

To teach basic knowledge on

Banking laws

Products
•

Processes

Risks

e.

To teach them how academic knowledge is practically applied in Banks.

c. Training and development

(a. Training Need Analysis

BOP through their training need analysis, assess the training needs.Currently various TNA practices
observed by current staff are as follows t

hat they repliedto me in answer to my question.In BOP TNA analysis include

Self Assessment

The training needs are assessed on the basis of self assessment such employees usuallythemselves
assess in which area usually they require training and they are provided whentraining session comes
accordingly.

Observation

Also Observation is also a good tool infect in past a team came where they got hiddencameras. That time
a Female Cash officer was offering the duty. Customer came andasked her that he wanted her to make
demand draft for him and she pointed him with outseeing to go to operations manager.This scene was
recorded in their cameras and he was strictly daunted and such behaviorswere corrected on training
session through role playing.

New Technology

Also when new technology is introduced then training need is assessed such as whencomputers became
necessity of bank then every employee was given computer training asnow their was no room for status
quo.

Customer Complaints
“ECCC reviews service and operational related complaints/queries/ feedback from thecustomers directly
as well as through State Bank of Pakistan, Banking Maltase Pakistan,Government bodies/ Departments
etc.”These external customers’ complaints also become source of assessing the training needs.

Bank Records

Similarly according to them they also used bank records for this purpose.

Employee’s grievances

Employees grievances also indicate them need for training.

a. (2) Training Mode

On the Job training

Yes here on the job training is also provided with in these branches.

On site training

Some banks and financial institutions demand that training

programs should be held attheir own sites. In such a case IBP has to design the training programs after
consultingwith concerned banks and objectives are also determined after mutual consultation.But BOP
also facilities its employees to attend the training workshops and seminars of IBP.OTI (Officer Training
Institute) is the Academy where training is provided to theemployees in BOP.

OTI (Officers Training Institute)

BOP set up its training institute in 1989.

OTI is located at 296-Upper mall, Lahore.

This is spread over 4 Canals.

⇒
It has 2 lecture Ivities has halls each having sitting capacity of 24.

It has offices for Principle and Directing staff members.

OTI is equipped with state of art multimedia facilities

Here mess services for 20 resident trainees are also provided

Its faculty includes 4 experienced and dedicated permanent members to providequality training.OTI has
conducted 30 coursers on various subjects these include

Branch banking

Agriculture

Finance

IT

Operations

KYC credit

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•

E.t.cMajor focus remains on

Soft skills development

Technical skills development

New Academic block of OTI.

According to decision of management, OTI will be established in a new building and this building is
located in commercial center of city.It will be given a complete floor and it will soon be made provided
with state of artmultimedia structure in order to start educational activities.

a. (3) Methods used to provide the training

Multimedia and Lectures

The training is provided through lectures delivering them to employees and M

ultimediaand Power point presentations are used to deliver them training lessons.“I also observed
specimen of Power point presentations and Window media player videosused to deliver the training
lessons to employees.”These were much similar to our VU teaching technique.Multimedia technique is a
traditionally used method in BOP to teach the training lessons.As per newsletter “OTI is equipped with
the state of art multimedia equipment conductive to better learninghostel facility.”

Role Playing

Also role playing is used in the sense that they may model their behavior according to thesituation
encountered as how to react in any situation.

Exercises

Also in training the trainees are provided case and asked to solve this such as they aregiven unbalanced
balance sheets and asked to balance these.
⇒

Simulation

“Training is provided in simulated environment and it also follows the question andanswers session.”

Internships

Internships are traditionally used method of on the job training

b. Career development

Not any mentoring is seen and not any tuition is given related to this..But in case of problems arising
they can get coaching from respective superiors t

hroughemails from BOP email service.In this concern IBP provide banks some advisory functionsIBP is
playing a very crucial part in advisory and consulting services buy bringing in usethe advices of retired,
highly experienced and senior professionals that are provided to banks as well as to stakeholders.These
services include

Developing operational manuals

Guidelines

Reports

PresentationsThese cover all bank related subjects including

Risk management

Anti Money Laundering

Corporate Governance
•

Lending operations

SME Finance

Micro Finance

All other products and services of financial service sector.Here Consultancy services regarding HRM are
also offered.

d. Performance Appraisal and Management

The performance appraisal of the staff is usually done through following three pa

rties

Branch Manager

Area Manager

Regional chief As such points are distributed in appraisal of above three.Final appraisal result is declared
by head Office.But there is exception for Credit officersTheir appraisal is done by

Unit Manager

Then goes to General Manager.Their Final result is also declared by Head Office.ABCThese are grades
given to them

e. Employee Compensation and Benefitsa. Types of compensations:-



Compensation to employees.

So far as direct financial compensation is considered these i

nclude following in their pay package

Basic pay

House allowances

Medical allowances

Utility allowances

Conveyance allowances

Bonuses

Telephone ReimbursementsFrom their compensation package following deductions are made.Provident

FundG.P FundB.FundGroup term insuranceIncome taxInstallments of loans (where applicable)

Compensation of Directors and executives

Fees

Managerial Remuneration

Bonuses

•
Contribution to defined contribution Plan

Rent and House maintenance

Utilities

Medical

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Other allowances.

Bonuses

The bonuses are also given to employees on completion of targets in form of cash prizes.

Commissions

BOP has just introduced the business development officers that will be paid commissionsalong with
other pay package items.

.bBenefits
They also introduced some schemes for the benefit of employees in past such asemployees plot scheme
in past through this a lot of employees purchased the plots.

Staff Retirement Benefits

Employee compensated Absences

“The value of provision for employee compensated absences is determined usingactuarial valuation. This
valuation includes making assumptions about discount rates,mortality, expected rate of salary increases,
retirement rates and average leave utilization per year. Such estimates are subject to significant
uncertainness because of the degree of subjectivity involved and long term nature of these
plansDiscount rate 15%Expected rate of eligible salary increases in future 14%Average number of leaves
utilized during the year 7 daysAverage number of leaves accumulated per annum by employees 23days”

Gratuity Schemes

“BOP makes provision in its financial statements for its liabilities towards gratuityscheme based on the of
last drawn basic salary of employees who have completed fiveyear of their basic salary.This scheme is
intended for those permanent employees who have completed five year of their services from their date
of joining or contractual employees who have become permanent.”

Defined contribution Plan(Provident Fund).

The bank has also provided the provident fund scheme, include all permanent employeesand the
contributions are made by bank and employees at the rate of 8.33 % of the basicsalary.Contribution
charged by bank is charged to income.

Life Insurance Schemes and Medical Insurance Schemes

The bank has also provided attractive group life insurance Schemes and MedicalInsurance for its staff.

Benefits to Executives

The Chief executives and other executive officers are provided with bank maintainedcars.These
employees can also avail following leaves

•
Sick leaves

Casual leaves

Privilege leaves

Mandatory leavesMandatory leaves among these are those leaves that employees are favored to avail
onmandatory basis these leaves are reserved for them.

f. Organizational Career Management:-

Job changes within the organizations:-

Promotion

Employees are usually promoted on the basis of

Appraisal being A+, A or B.

It can be on the basis of internal re

cruitment policies usually on therecommendation of superiors.

Demotions

In BOP demotions take place usually on the following basisWhen there is

Doubt on integrity

Or being involved in fraud

•

Or on Bad performance

Transfers

According to BOP policy employees are transferred when

Three years are completed

On request of staff members

When there is shortage of worker

Or when there is excessive staff in any branch.

Employees Separations

Resigns

The employees resign from the job when they wante

d to leave the job. But they have togive 3 months notice before resigning.

Retirements

The employee can take retirements on completion of job tenure.

Quits or deliberating leaving job

In case of quits they have to return three months basic pay.


Discharge or Firing

An employee is fired when found in serious fraud.He can be discharged on completion of contract if his
contract is not renewed or his work is not found up to mark on completion of contract.

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g. Employee Relations and Complaints Handlinga. Grievance Handling / Compli

ant Handling

Usually used method of grievance collection is through blank Performa that are mailed toall employees
to fill. Where various questions are asked from them related to their problems.In these way employees
problems are assessed and then solving actions are taken for them.Infect bank maintain their good
relationship with the employees with their employeefriendly policies.According to Faisal Aziz Mazari
There are currently no unions in BOP.

b. External customer’s complaints handlingA customer Focused Bank As per instructions in TQM course”
Customer is our Boss”

ECCC reviews service and operational related complaints, queries and feedbacks.These complaints are
tried to resolve quickly.This network comprises of

Area operation manager

Regional operational heads

The complaints pertaining to any branch /area/region are investigated by an inquiryofficer.This inquiry
officer sends its investigation report.This investigation report is carefully examined.The necessary steps
are taken so that this may not happen again.

c.Ways of collecting customer complaints

ECCC has provided various options in this concern

Compliant forum

These are available in each and every branch mentioning emai

l address andtelephone numbers of ECCC.

Direct Call

Customers can call anywhere from Pakistan

Website

They can also lodge their complains on BOP websites.

Customer Complaint Box

The customers can also put their complaint in customer complaint boxes inBranches.

15. Critical Analysis

a.Human Resource DevelopmentA critical Look:

To my opinion the HRD strategy of the BOP is quite

excellent where senior management provide necessary direction and leadership to the staff, and they get
the work fromemployees according to their skills and potential. It is a good practice to provide
goodcarrier development opportunities.Similarly they are provided training to equip them with
necessary skills and knowledgethat is needed accordingly.Various methods of providing training are
already discussed and hence surprisingly manyof the methods taught to us in lesson are used during
training.Their HRD Strategy is quite excellent that has made this bank the most proficient bank of
Pakistan.Here the aptitude of the employees is assessed at all the levels and also high
performingemployees are recognized. It means their HRD is mainly focusing the high performers.This will
give them a benefit of retaining these high performers by promoting them up,and also getting the
maximum performance from these employees hence playing a keyrole in taking the BOP to Heights.The
HR strategy of BOP mainly focuses on the supporting and increasing the professionalism in employees so
that they may have sense of responsibility being the professionals such as they may have a regard of
their reputation and position in the bank.As their negligence during performing their work can harm
their reputation as well aswill affect their overall performance that will become prominent after
performanceappraisal.

After assessment, it is reported BOP has competent staff and its workers are highlyskilled and their skills
are further developed through regular training. It is to greatsurprise that these workers are very
committed and self motivated to perform their jobs. No doubt this has become major strength of BOP in
this concern.The staff is also allowed to attend training workshops and seminars such as at variousforums
like IBP, PBA and SPB.It is also committed to create synergy through elevating benchmarks and
invigorated inter linkages.It has also commitment to good corporate governance that is done through
creating acompliance oriented environment.It shows a good commitment to stakeholder that is to
generate lucrative returns for themthrough business growth and diversity.

b.Internal Control System and Compliance (in perspective of Change andInnovation Management)A
Critical look.

The Bank of Punjab has an efficient control system that has been proved a firm rock tothe erroneous
transactions and frauds in the bank.Compliance and control division abbreviated as CCD makes sure that
whether bank isfollowing the prudential regulations of SBP or not.It also makes sure that bank is
following the banking laws or not in their dailytransactions.In this concern they have appointed M/s A.F
Ferguson to develop a frame work that is inline with COSO guidelinesCCD has been assigned the
responsibility of monitoring the implementation process. Aneffective implementation will ensure an
effective control system in bank.One more important part of CCD is its

account and transaction monitoring

unit thatmonitors and review the transactions over one million on daily basis.When out of pattern
transactions are detected, these are thoroughly investigated withrelated branches. In case a transaction
is found suspicious it is immediately reported to

Financial Monitoring Unit.

There are legal penalties on none reporting, misreporting or concealing facts leading to jail of up to 3
years or fine as per AML ordinance or both.According to theoretical concepts, it is an effective and
excellent control system throughwhich Bank is today recognized as most reliable bank in Pakistan. This
control system isa major strength of BOP.
e.Human Relation Aspects and Conflict Managing Aspects

Despite of comparing the HRD and Control system in Bank to theoretical concepts…..Ihave personally
observed some major Issues in this Branch.Although with the passage of time I have not seen a lot status
quo in the branch yet at thesame time I have observed personal Ego problems with the employees and
employers.Here I have personally observed the stereotype behavior while dealing any client or
customer.With regard to their behavioral attitude, I just noticed that the person having better social
position are dealt differently as compared to people having bit lower social position.All the game is own
satisfying each others interests.Such as If any person that is although well reputed in the society but yet
not wealthyenough to give the manager any monetary benefit will only be dealt diplomatically.That
means all formalities will be satisfied but in the end official will bid farewell with anexcuse that will be
satisfactory for him.I have rarely noticed the constructive conflicts but mostly destructive conflicts
thatalways end up in disputes between negotiating parties.The relations are important aspect as only
relations and references are something I havefully observed. Employee does every thing to preserve
their relationships with valuablecustomers.

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Infect, a good manager is a person that knows the art of good relations with its clients thatwill help him
in preserving and maintaining the existing relationships and perpetuatingthis credible fame so that he
may activate an automatic inflow of clients to the branch.During my practice in BOP, my main focused
remained on good public dealing, letcustomers notify us about our mistakes, and maintaining a friendly
attitude that create agood image in the eyes of customers.I also tried my level best to satisfy the various
problems and conflicts in their minds.Infect, Alhumdolliah, I was warmly appreciated by manager during
this period for mymannered attitude and not so bad performance in assigned tasks.The level of trust that
is created is calculus based trust mostly, because if the customer knows the consequences and still
breaks the trust, then simply he is illegible to pay the penalty.BOP also creates knowledge based trust
based on the knowledge of other party.