CHAPTER – ONE - Internship reportsinternshipreports.yolasite.com/resources/Final Report The... · Web vie was used for various advancements going on within the bank. 1.6 LIMITATIONS

Employee Training and Development

CHAPTER – ONE

INTRODUCTION TO THE REPORT

‘If you can change your mind, you can change the world.’Joey Reimer

1.1 INTRODUCTION TO THE TOPIC

The main focus of this study is Employee Training and Development at the Bank

of Khyber. The training and development function of an organization is often responsible

for helping employees to maximize their potential. Training and development helps in

building more efficient, effective and highly motivated team, which enhances the

company’s image and gives it a competitive edge over other banks.

Employee training and developing helps to increase productivity, reduce

employee turnover, and increase efficiency resulting in financial gains and decrease need

for supervision. Employees frequently develop a greater sense of self-worth, dignity and

well being as they become more valuable to the firm and society.

1.2 BACKGROUND OF THE STUDY

It is a common practice at the universities that during their MBA program

students are given exposure to different practical fields related to their studies. At

institute of management sciences it is a pre-requisite for the students to carryout

internship of two months in organization of their choice for bridging the gap between

theory and practice. The two months internship is documented in written in form of a

report, based on theoretical and practical learning of the student. The undertaking concern

of this report is to study and analyze employee training and development at the Bank of

Khyber.

The Bank of Khyber recognizes the need to enhance productivity, performance

and value of its employees through continued training and education. This is necessary

for the Bank in order to achieve and maintain a leading position in the industry through a

pool of its skilled and motivated employees. The Bank’s training and development

programs aim to improve and enhance employee performance through continued

learning. It also enhances their skills and knowledge of banking practices.

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1.3 PURPOSE OF THE STUDY

The main purpose of this study is to analyze “Employee Training and

Development” at the Bank of Khyber. It is also an exercise of applying management

theory into practice and gives an opportunity of improving interpersonal skills by

working with the people, communicating with them, and getting relevant information

from them in order to write an analytical report on the systems and procedures followed

by the organization.

Employee training and development includes new employee orientation,

employee training, employee development and organization development. But this study

is mainly focused on new employee orientation, training and development. Training is an

integral part of Human Resource Development. It helps officers at the Bank to plan and

choose their career path.

An orientation program should familiarize the new member with the

organizations objectives, history, philosophy, procedures, and rules, communicate

relevant HRM policies such as work hours, pay procedures, overtime

requirements, and company benefits, review the specific duties and responsibilities

of the new members job, provide a tour to the organizations physical facilities, and

introduce the employee to his /her manager and coworkers and to the overall

culture of the organization.

Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their

jobs. Training is a learning experience in that it seeks a relatively permanent

change in an individual that will improve his/her ability to properly perform on the

job.

Employee development on the other hand, generally focuses on the future jobs in

the organization. As the employee’s job and career progresses, new skills and

abilities are required.

1.4 SCOPE OF THE STUDY

The scope of this report is Employee Training and Development at the BoK.

Personnel and Training Department is the focus of this study. New employee orientation

and employee training and development has been highlighted is this report.

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Training needs usually arise when there is a gap between actual and desired

performance. These training needs are usually assessed through training needs surveys,

which range from simple questionnaires, where employees assess their own needs, to a

more elaborate and painstaking testing of skills.

Training is not an end in its self but a means to fix inadequacies identified in HR

exercises. Training needs also arise out of the organizations growth and restructuring

plans whereby employees have to be prepared/ developed to occupy positions and

execute plans that the organization has set for itself. Any attempt by the organization to

grow without first developing its Human Resource is bound to failure.

1.5 RESEARCH METHODOLOGY

Data can be obtained from primary or secondary sources. Majority of the data

presented in the report is collected through primary data sources. Primary data is

collected when there is insufficient secondary data available.

1.5.1 Primary DataPrimary Data refers to the data obtained for the first time and used specifically for

the particular problem or issue under study. Primary Data is collected directly

from people and organizations via questionnaires, interviews or surveys. Simply

primary data can be defined as the data collected personally through fieldwork.

Mainly questionnaires and face-to-face interviews have been conducted to collect

the data.

1.5.1.1 Face-to-face Interviews

Interviews conducted are of three types depending upon their nature of

conduction. These three types of interviews are:

1. Structured InterviewsWhen a pre-planned questionnaire is taken and an interview is conducted.

2. Semi Structured InterviewsWhen partial planning is done before commencement of an interview.

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The Bank of Khyber


3. Unstructured Interviews

Similarly, unstructured interviews are conducted when questions are asked

randomly.

These interviews are taken mainly from the concerned personnel. Face –to-face

interviews provide rich data, offer the opportunity to establish rapport with the

interviewees, and help to explore and understand complex issues. Many ideas

ordinarily difficult to articulate can also be brought to the surface and discussed

during such interviews.

1.5.1.2 QuestionnairesA questionnaire is a pre-formulated written set of questions to which respondents

record their answers. Questionnaires have been distributed among employees

apart from the interviews to know their response regarding certain issues of

employee training and development.

1.5.2 Secondary Data Apart from questionnaires and conducting interviews, secondary data was used.

Secondary data refers to information gathered from sources that has already

existed. There are several sources of secondary data, including books, and

periodicals, government publications of economic indicators, the media, annual

reports of the companies, case studies and other archival records are sources of

secondary data which provide a lot of information for research and problem

solving.

The advantage of seeking secondary data sources is saving time and costs of

acquiring information. However, secondary data as the sole source of information

has the drawback of becoming obsolete, and not meeting the specific needs of the

particular situation or setting. Hence, it is important to refer to sources that offer

current and up-to-date information.

In secondary data three types of sources were employed. These are:

1. BooksManagement and human resource management books were consulted for

definitions and for a little bit of elaboration of some of the topics.

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2. Documents Published by the Bank of Khyber (BoK)The documents like the Bank of Khyber annual report and employee service rules

were used.

3. The Bank of Khyber Official Websitewww.bok.com.pk was used for various advancements going on within the bank.

1.6 LIMITATIONS OF THE STUDY

Employee training and development is difficult to analyze in a short span of two

months. Therefore the study has certain limitations as:

Limited time period of two months in which it was very difficult to cover all the

aspects of employee training and development.

Lack of information about training and development of the bank as well as no

information was available about the competitors; therefore it was not possible to

carry out comparative analysis.

1.7 SCHEME OF THE REPORTThe report is divided into four sections and then these sections are further sub-

divided into chapters. These four sections of the report are:

1.7.1 SECTION – 1: INTRODUCTION TO THE REPORTSection one includes some basic information regarding the process of preparation

of the report. It includes some basic information about the topic under discussion.

This section consists of one chapter, which has further been divided into seven

sub-headings. These sub headings are:

1. Introduction to the topic

2. Background of the Study.

3. Purpose of the Study.

4. Scope of the Study.

5. Research Methodology.

6. Limitations of the study.

7. Scheme of the Report.

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1.7.2 SECTION – 2: ORGANIZATIONAL REVIEW

This section describes the existing situation of the organization under review. The

information of this section has been collected through studying internship reports,

HRM books, and relevant documents of the bank and by interviewing people. This

section is divided into four chapters. Which is categorized as:

1. Organizational review.

2. Literature Review: New Employee Orientation.

3. Literature Review: Emplyee Training.

4. Literature Review: Employee Development.

5. New Employee Orientation at the Bank of Khyber.

6. Employee Training and Development at the Bank of Khyber.

1.7.3 SECTION – 3: ANALYSISThe analysis is based on the area of interest such as employee training and

development at BoK. This section of the report consists of:

1. Questionnaire Analysis.

2. Concluding Summary.

1.7.4 SECTION – 4: FINDINGS AND RECOMMENDATIONSThis is the most important part of the report. This section of the report consists of:

1. Findings.

2. Recommendations.

3. Proposed Orientation Plan for the Bank of Khyber.

4. Proposed Employee Training and Development Plan for the Bank of Khyber.

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CHAPTER – TWO

ORGANIZATIONAL REVIEW

‘If we want to create a workplace that values idealism, human

connection, and real, in depth learning, we will have to create it ourselves’.

Peter Block

2.1 DEFINITION OF BANK

Bank can be defined as:

“A financial institution, which deals with money and credit, it accepts deposits

from individuals firm and companies at a lower rate of Interest and gives at higher rate

of interest to those who need them.”

Banks can play an important role in the economic development of a country. If

the banking system of a country is unorganized and inefficient, it creates maladjustment

and impediments in the process of development.

2.2 HISTORICAL BACKGROUND OF THE BANK OF KHYBER

The Bank of Khyber was established through the Bank of Khyber Act passed by

the Provincial Assembly in June 1991. It is the only Bank in Pakistan having its head

office at Peshawar.

The BoK was established to:1

Meet demand of the business community to have a bank with its head office in the

Province.

Have accessibility of local businessmen to senior management of the bank for the

prompt credit decision making there by accelerating investment in N.W.F.P.

Have maximum utilization of funds generated in the Province for the economic

development of N.W.F.P.

2.2.1 Scheduled Bank Status

1 Mr. M. Mumtaz (AVP) HRD at Head Office

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Up to 1994 the Bank was operating at provincial level as unscheduled bank under

the auspices of the provincial government. But in 1994 it got the status of the

scheduled bank and came under the regulatory framework of SBP, currently

operating at the national level. Due to this status the BoK is also engaged in

foreign trade business directly.

2.2.2 The Paid up Capital of the Bank

The initial paid up capital of the Bank was Rs. 153 million, which has now been

raised to Rs. 1,050 million.2

The point of distinction between BoK and other national banks is that it acts not

only as a commercial bank but also strives to be a development bank through its

emphasis on financial support, especially to small and medium sized businesses.

The Bank has been showing improvement in all the lines of its business, mainly

deposits advances & profits. The Bank has undertaken a complete

computerization of its branch operations and has also issued Traveler Cheques

and it has entered with American Express and Diners Club Pakistan limited for

issuance of their respective credit cards from BoK counters. BoK has established

correspondent banking relationship with several international banks and financial

institutions, and is competing hard with other banks for its share of business.

2.3 BRANCHES IN PAKISTAN

Currently the Bank has twenty-nine (29) branches with twenty three (23) in

NWFP, two at Karachi, and one each at Islamabad, Lahore, Quetta, and Muzzaffarabad.3

The Bank plans to open new branches in the country with Islamic Banking System.

Starting from Peshawar where it plans to open one branch with Islamic Banking System

in the near future.

1.4 VISION STATEMENT OF BoK

A vision statement is a long-term goal that a company wants to achieve. A vision

statement should answer the basic question, “What do we want to become?” The vision

statement of the bank is as follows:4

2 Mr. Mumtaz (AVP) HRD of BoK3 Personnel communication interview Mr. Tariq Hussain (Admin Officer) in Head office of BoK 4 The BoK Annual Report for the year 2003 p 3

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The Bank of Khyber


“Gradual conversion into ISLAMIC BANKING to develop and promote a

true Islamic economic system”.

2.5 MISSION STATEMENT OF BoK

The mission statement is declaration of an organization’s “reason for being”. It is

an enduring statement of purpose that distinguishes one organization from other similar

enterprises. It answers the pivotal question, “What is our business?” The mission

statement of the bank is as follows:5

“To increase shareholders’ value and provide excellent service and innovative

products to customers through effective corporate governance, friendly work

environment, and contributing towards an equitable socioeconomic growth.”

2.6 CORE VALUES OF BoK

The core values of BoK are as follows:6

Highest quality of service

Professionalism, Integrity and Team work

Innovation and utilization of latest technology

Corporate Social Responsibility

2.7 OBJECTIVES OF BoK

Under the Bank of Khyber act of 1991 of the provincial assembly of N.W.F.P. the

banks objectives are as follows7:

i. To mobilize private savings and public funds for diverting the same into

productive channels and ensure their availability.

ii. To promote industrial agricultural and socio -economic processes through

the active participation of private and public sector in the province.

iii. Help under-developed areas and create employment opportunities,

especially in the rural areas of the province. Further, to guide and assist the people

of N.W.F.P serving overseas to effectively and profitably invest their foreign

savings in the province as well as in other parts of Pakistan.

5 Annual report 2003 of BoK p 4.6 Annual Report 2003 of BoK7 Mr.Zahid Sahibzada (OG-1) in Head office of BoK

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The Bank of Khyber


iv. Create a diversified and sound portfolio for utilization of idle funds and

their investment in the existing and new ventures especially in the pioneering of

high- tech agro-based export oriented and engineering projects to ensure maximum

returns.

v. Participate and seek the share of the province in the capital market of

Pakistan by way of subscription through locally pooled resources in the leading

stock exchanges of the country and eventually paving the way for establishing a

stock market in the province.

2.8 BOARD OF DIRECTORS

The bank’s ultimate governing body is the “Board of Directors” comprising of

eight members. The government of N.W.F.P is the major stakeholder of the bank

therefore the chairman and all the members of the board are nominated by it.

The Managing Director of the Bank represents the management in the Board and

acts as a member of the Board. There is a company secretary who calls meeting of the

board and maintains the minutes and proceeding of the Board of Directors. The current

members of BOD are as follows:8

8 Annual Report,The Bank of Khyber,2004.

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BOARD OF DIRECTORS OF THE BANK OF KHYBER

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The Bank of Khyber

Mr. Mir Laiq Shah

Chairman

Mr.Zia-ur-Rehman

Director

Mr. Muhammad Asif

Director

Mr. M. Shakir Siddiqui

Director

Dr. Zubair Khan

Director

Mr. Syed M Abbas

Director

Mr. Turan Caglayan

Director

Dr. Munir Ahmad

Managing Director


2.9 MANPOWER POSITION

According to the manpower position report of 30th June, 2005 the bank had hired

a total of 551 employees, among which 362 are permanent employees of the bank while

the others i.e. 56 employees are serving the Bank on contractual and casual basis. The

contractual and casual staff includes 113 tea boys other supportive staff, and some of the

employees at officer cadre. Besides this staff there are free lancers attached with the Bank

that serves and guides the bank in different matters. These include Legal Advisors,

Contractors etc.

2.10 ORGANIZATIONAL STRUCTURE OF BoK

Organizational structure is defined as “the set of elements that can be used to

configure an organization9.” As technology, environment, size, lifecycle and strategy can

all influence an organizational design, it should come as no surprise that organizations

adopt many different kinds of design10. Most design, however, fall into one of the four

basic categories. Others are hybrids based on two or more of the basic forms11.

The organization structure of BoK is based on functional (U-Form) design. The

Functional Design is an arrangement based on functional approach to

departmentalization12. Functional approach to departmentalization means grouping

together those jobs, which involves similar activities13. This design has been termed the

U-Form (for unitary) by the noted economist Oliver E. Williamson14. Under the U-Form

arrangement, the members and units in the organization are grouped into functional

departments such as production and marketing etc15.

2.11 ORGANIZATION HIERARCHY

At each position the duties, goals, functions, responsibility and authority are

clearly explained.

The channels that delegate these activities are called organization hierarchy. This

must be set in such a manner to best accomplish the organizational goals.

9 Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p. 292.10 Stephen P. Robbins and Mary Coulter, Management, Ed. 5th, USA: Prentice Hall Inc, 1998, p. 329.11 Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p. 333. 12 Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p333.13 Ibid, p. 298.14 Oliver E. Williamson, Markets and Hierarchies, New York: Free Press, 1975, p. 31.15 Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p. 333.

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The Bank of Khyber


The Bank of Khyber ultimate governing body is the board of directors while the

day-to-day affairs of the bank are managed by a Managing Director appointed by the

board of directors for a term of three years on contract with the consent of the

Government of N.W.F.P. Under the supervision of MD there are executive vice

presidents (EVPs) the senior most officials in the bank’s hierarchy each heading a bank

unit. Next to EVP there are senior vice presidents ( SVPs) and vice presidents (VPs)

heading their respective divisions and departments.

At the branch network of BoK there are branch managers and assistant branch

managers.

The nomenclature of various posts in the bank is as under:

1. Executive Vice President

2. Senior Vice President

3. Vice President

4. Assistant Vice President

5. Officer Grade-I

6. Officer Grade-II

7. Officer grade-III

8. Junior officer

9. Driver

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The Bank of Khyber


2.12 ORGANIZATIONAL CHART

The organizational chart of the Bank of Khyber is as follows:

THE ORGANIZATIONAL CHART

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The Bank of Khyber


2.13 DEPARTMENTALIZATION OF BoK

Departmentalization is the process of grouping jobs according to some logical

arrangement.16 The manner in which activities should be divided and formed into

specialized group usually referred to as departmentalization.17 BoK has used the most

common base for departmentalization i.e. the functional approach to

departmentalization.18 Functional departmentalization means where grouping of jobs

takes place according the same, or similar activities.19 The word function is used here to

mean organizational functions such as finance and production, rather than the basic

managerial functions such as planning or controlling.20

The head office of BoK is divided into the following departments”

1. Credit Division

2. Finance Division

3. Islamic Banking Division

4. Internal Audit Division

5. Information Technology Division

6. Human Resource Division

7. Treasury and Investment Division

8. Banking operations Division

9. Marketing Division

10. RRMC & RD Division

2.13.1 Credit Department21

Credit division of BoK continuously tailored its policy frameworks in accordance

with the tough competition faced in the wake of reducing mark up rates scenario

and increase liquidity in the market. Introduction of new schemes like house,

consumer, car and micro financing will definitely improve and enhance the credit

portfolio. BoK is strengthening its grip on the target market for these schemes.

The credit monitoring cell, credit department, consumer finance department and

micro finance department comes under the umbrella of credit division.

16 Ricky W. Griffin, Management, Ed 5th, and USA: Houghton Mifflin Company, 1997, p298.17 John Douglas and Joseph L. Massie, Managing, Ed. 2nd, New Jersey: Prentice Hall, 1973, p14318Personal Communication, interviewee, Zahid Sahibzada (OG-I) at Head office.19 Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p298.20 ibid.21 Annual Report 2004 of BoK p 15

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2.13.2 Finance Division22

The finance division is responsible for fiscal managing, financial control, financial

reporting and accounting function of the bank. This division ensures that the

accounting record and systems are maintained in accordance with the internal

policies, regulatory requirements and international accounting standards. It

establishes policies and procedures relating to the finance functions, monitors

returns on earning assets and report on various performance indicators including

assets/liabilities mismatch. The division directs control of the budgeting process in

accordance with the annual plans, policies, management’s directives and

strategies. Internal auditors, tax authorities and SBP inspectors are the advisories

of this department.

2.13.3 Islamic Banking Division (IBD)

The division is working according to the guideline of Shariah supervisory board.

The objective of the IBD is to implement the decision of the board of directors to

gradually convert the whole bank into an Islamic bank with in three years under

the supervision of the Shariah supervisory board as per rules and regulations of

the SBP. IBD plans to convert twelve more bank branches in 2005 and the

remaining in 2006.

2.13.4 Internal Audit Division (IAD)The internal audit division works independent of the management and reports to

audit committee of the board of directors (BOD). The audit committee comprises

of three non-executive directors and the head of IAD has freely access to the

chairman of the committee. The IAD consist of two departments namely audit &

inspection and compliance & implementation.

IAD provide regular training to its personnel in various field of banking to

enhance their skills and proficiency. It provides guidance and creates awareness

among the employees of the Bank regarding bank’s policies, procedures and

regulations and compliance thereof.

2.13.5 Information Technology Division (ITD)23 22 Ibid. p 1623 Ibid. p. 19

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Information technology department progressed in the last eight years and trying

its best to stay abreast in the field of fast developing technology. In order to

achieve its goals, the management has decided to start on-line banking in the very

near future, this will facilitate the customers of the BoK and they will be able to

transfer money between any two BoK branches and throughout the country.

2.13.6 Human Resource Division (HRD)24

HRD plays a vital role in carving the present and future image of an organization

by managing the employees in most beneficial and effective manner. The

functional arena of HRD consists of recruitment, training, performance appraisals,

planning and career development and above all grooming of staff to adhere to

office ethics and social norms. HRD provides on the job as well as off the job

training to the staff in diverse areas of banking and management. The training

relies on both internally arranged courses as well as external courses at institute of

repute in the country.

2.13.7 Treasury and Investment Division25

BoK is now gearing towards revamping its treasury, would soon assume a more

pro-active role in serving BoK customers, especially the corporate clients.

Upgrading the human resource skills is enhancing its capacity and the I.T

system .In future BoK will be able to manage corporate customer funds and

quote money market related rates for short-term corporate size loans.

2.13.8 Banking Operations Division26

The Banking operations Division is mainly responsible to manage the operations

i.e. work processing functions in the bank. The banking operations division

controls branch operations and international banking department. This division

propose operational polices, procedures and ensure strict compliance of the same

through liaison with internal audit division.

2.13.9 Marketing27

The marketing division of the bank is responsible for the formulation and

implementation of Marketing Strategy of the Banks products both on assets and 24 Ibid. p. 2125 Ibid. p. 2226 ibid p22.27 Ibid p17

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The Bank of Khyber


liabilities keeping in mind the business environment of the province. Accordingly

the division works to popularize the Banks deposit schemes and loan products

among the people with a view to improve business and over all image of the

Bank.

2.13.10 RRMC & RD28

The main responsibilities of the division include the recovery of all irregular as

well as bad debts of the bank. As a part of re-engineering of the division, a full-

fledged collection unit was established whose major assignment is to follow-up

the delayed accounts from the very 1st day of default in order to mitigate the risk

of further infection.

In order to bring effectiveness and cost control RRMC&RD coordinators closely

with credit, IT and MIS division.

28 ibid p18.

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CHAPTER – THREE

LITERATURE REVIEW

NEW-EMPLOYEE ORIENTATION

‘The development of a tree depends on where it is planted.’

Edward Joyner

3.1 ORIENTATION DEFINITIONS

One definition of orientation is “familiarization with and adaptation to a

situation or an environment.”29

Weihrich Heinz and Koontz Harold defined orientation as “Orientation involves

the introduction of new employees to the enterprise, its functions, tasks and people”30.

In simple words it can be defined as “new employee orientation covers the

activities involved in introducing a new employee to the organization and to his or her

work unit. An orientation program should familiarize the new member with the

organizations objectives, history, philosophy, procedures, and rules, communicate

relevant HRM policies such as work hours, pay procedures, overtime requirements, and

company benefits, review the specific duties and responsibilities of the new members job,

provide a tour to the organizations physical facilities, and introduce the employee to

his /her manager and coworkers and to the overall culture of the organization.”31

In practice, orientation is often just a superficial indoctrination into company

philosophy, policies, and rules; sometimes it includes the presentation of an employee

handbook and a quick tour of the office or plant.

In one way, a displaced worker from the organization who is hired into another

environment is similar to a new college graduate. Upon starting a new job, both will face

a kind of cultural shock. As they are exposed for the first time to a new organizational 29 Wayne F. Cascio, Managing Human Resources,5th Edition, and USA :Irwin McGraw-Hill, 1998, p. 28230 Weihrich Heinz and Koontz Harold, Management A Global Perspective, International Edition, USA, p. 385.31 Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC, 1999, p. 223

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culture, both find that the new job is not quite what they imagined it to be. In fact,

coming to work at a new company is like visiting a foreign country. Either you are told

about the local customs, or else you learn them on your own by a process of trial and

error. An effective orientation program can help lessen the impact of this shock. But there

must be more, such as a period of socialization, or learning to function as a contributing

member of the corporate “family.”

The cost of hiring, training, and orienting a new person is far higher than we can

imagine. A new employee’s experiences during the initial period with an organization

can have a major impact on his or her career. A new hire stands on the “boundary” of the

organization – certainly no longer an outsider but not yet embraced by those within.

There is great stress. The new hire wants to reduce this stress by becoming (acquainted)

with the “interior” as quickly as possible. Consequently, during this period an employee

is more receptive to cues from the organizational environment. Such cues to proper

behavior may come from a variety of sources, for example32:

Official literature of the organization.

Examples set by senior people.

Formal instructions given by senior people.

Examples given by peers.

Rewards and punishments that flow from the employee’s efforts.

Responses to the employee’s ideas.

Degree of challenge in the assignments the employee receives.

32 Wayne F.Cascio, Managing Human Resources,5th Edition, and USA :Irwin McGraw-Hill, 1998,p282

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3.2 PROBLEMS FACED BY NEW EMPLOYEES

In short, new employees face three typical problems upon joining an

organization.33

3.2.1 Problems in Entering A GroupNew employees ask themselves whether they will be

Acceptable to the other group members

Liked by the other group members

Safe – that is, free from physical and psychological harm.

These issues must be resolved before they can feel comfortable and productive in

the new situation.

3.2.2 Naive Expectations

Organizations find it much easier to communicate factual information about pay

and benefits, vacations, and company policies than information about employee

norms (rules or guides to acceptable behavior), company attitudes, or “what it

really takes to get ahead around here.” Simple fairness suggests that employees

ought to be told about these intangibles. The bonus is that being up-front and

honest with job candidates produces positive results.

3.2.3 First-Job Environment

Does the new environment help or hinder new employee trying to climb aboard?

Can peers be counted on to socialize new employees to desired job standards?

How and why were the first job assignments chosen? Is it clear to new employees

what they can expect to get out of their first job assignments?

The first year with an organization is the critical period during which an employee

will or will not learn to become a high performer. The careful matching of

company and employee expectations during this period can result in positive job

attitudes and high standards, which then can be reinforced in new and more

demanding jobs.

33 Ibid. p. 171.

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3.3 PLANNING AND PACKAGING AN ORIENTATION PROGRAM

New employees need specific information in three major areas:34

Company standards, expectations, norms, traditions, and policies.

Social behavior, such as approved conduct, the work climate, and getting to know

fellow workers and supervisors.

Technical aspects of the job

The most common reasons for firing new hires are absenteeism and failure to

adapt to the work environment. Fewer than 10 percent of employees are dismissed

because of difficulties in learning how to perform their jobs35. These results suggest two

levels of orientation; company and departmental. There will be some matters of general

interest and importance to all new employees, regardless of department. The HR

department should have overall responsibility for program planning and follow-up

(subject to top-management review and approval), but the specific responsibilities of the

HR department and the immediate supervisor should be made very clear to avoid

duplication or omission of important information.

3.4 ORIENTATION FOLLOW-UP

The worst mistake a company can make is to ignore the new employee after

orientation. Almost as bad as an informal open-door policy: “Come see me sometime if

you have any questions36.” Many new employees are simply not assertive enough to seek

out the help of supervisor or HR representative – more than likely, they fear looking

“dumb.” What is needed is formal and systematic orientation follow-up; for example, use

focus groups of randomly selected new employees to find out what they like and do not

like37. It is found that many of the topics covered during orientation need to be explained

briefly again, once the employee has had the opportunity to experience them firsthand.

This is natural and understandable in view of the blizzard of information that often is

communicated during orientation. In completing the orientation follow-up, review a

checklist of items covered with each new employee or small group of employees to

34 John M. Ivancevich. Peter Lorenzi, Steve J. Skinner and Philip B. Crosby, Management Quality and Competitiveness, p. 309.35 Ibid. p. 309.36 Wayne F.Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 290.37 Ibid. p. 291.

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ensure that all items were in fact covered. Then make sure that the completed checklist is

signed by the supervisor, the HR representative, and the new employee.

3.5 EVALUATION OF THE ORIENTATION PROGRAM

At least once a year, review the orientation program to determine if it is meeting

its objectives and to identify future improvements38. To improve orientation, you need

candid, comprehensive feedback from everyone involved in the program. There are

several ways to provide this kind of feedback: through roundtable discussions with new

employees after their first year on the job, through in-depth interviews with randomly

selected employees and supervisors, and through questionnaires for mass coverage of all

recent hires39.

38 Werther William B, Davis Jr. Keith, Human Resources and Personnel Management, Fifth Edition, USA, p.345.39 Ibid. p. 345.

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CHAPTER – FOUR

LITERATURE REVIEW

EMPLOYEE TRAINING“There is nothing training cannot do. Nothing is above its reach. It can

turn bad morals to good; it can destroy bad principles and recreate good ones; it

can lift men to angelship.”

Mark Twain

4.1 TRAINING DEFINITION

“Training consists of planned programs designed to improve performance at the

individual, group and/or organizational levels. Improved performance, in turn, implies

that there have been measurable changes in knowledge, skills, attitudes, and/or social

behavior”.40

“The systematic development of the attitudes/knowledge/skill behavior patterns

required by an individual in order to perform adequately a given task or job.”41

“The acquisition of skills, concepts or attitudes that results in improved

performance in an on-the-job situation.”42

“Employee training is more present-day oriented; its focus is on individual

current jobs, enhancing those specific skills and abilities to immediately perform their

jobs. Training is a learning experience in that it seeks a relatively permanent change in

an individual that will improve the ability to perform on the job”.43

In simple words training can be defined as learning that is provided in order to

improve performance on the present job. This includes training new personnel to perform

their job, introducing a new technology, or bringing an employee up to standards.

40 Wayne F.Cascio, Managing Human Resources, 5th Edition, and USA: Irwin McGraw-Hill, 1998, p. 260.41 Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company LTD, 1999, p. 2.42 Ibid. p. 2.43 Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC, 1999, p. 228.

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There are four inputs to a system: people, material, technology, and time. Training

is mainly concerned with the meeting of two of these inputs i.e. people and technology.

That is, having people learn to master a given technology.

“If you don’t know where you are going, any road will take you there.”44

Goal setting has a proven track record of success in improving employee

performance in a variety of settings and cultures. On average, goal setting leads to a ten

percent improvement in productivity, and it works best with tasks of low complexity.

Goal theory is founded on the premise that an individual’s conscious goals or

intentions regulate her or his behavior. Once an individual accepts a goal, difficult but

attainable goals result in higher levels of performance than do easy goals or even a

generalized goal such as “do your best.”

4.2 IMPLICATIONS FOR MOTIVATING TRAINEES

Three important implications for motivating trainees are45:

1. Make the objectives of the training program clear at the outset.

2. Set goals that are challenging and difficult enough that the trainees can derive

personal satisfaction from achieving them, but not so difficult that they are

perceived as impossible to reach.

3. Supplement the ultimate goal of “finishing the program” with sub goals during

training, such as trainer evaluations, work-sample tests, and periodic quizzes. As

trainees clear each hurdle successfully, their confidence about attaining the

ultimate goal increases.

The training issues can be addressed from at least two perspectives i.e. macro

and micro level46. At the structural level, one can examine issues such as the aggregate

level of expenditures by the various providers of training (e.g., federal, state and local

governments, educational institutions, private-sector businesses), the degree of

cooperation among the providers, incentives (or lack of incentives) for providing training,

who gets training, and the economic impact of training. These are macro level concerns47.

44 Lewis Carroll in Alice’s Adventure in Wonderland, (1865).45 Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p272.46 Ibid p261.47 Ibid p261.

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At the micro level, one may choose to examine issues such as what types of

training seem to yield positive outcomes for organizations and trainees (i.e., what

“work”); how to identify if training is needed and, if so, what type of training best fits the

needs that have been identified; how to structure the delivery of training programs; and

how to evaluate the outcomes of training efforts.48

4.3 CHARACTERISTICS OF EFFECTIVE TRAINING PRACTICE

The four characteristics that distinguish companies with the most effective

training practices are:49

Top management is committed to training and development; training is part of the

corporate culture.

Training is tied to business strategy and objectives and is linked to bottom line

results.

A comprehensive, systematic approach to training exists; training and retraining

are done at all levels on an ongoing basis.

There is a commitment to invest the necessary resources and to provide sufficient

time and money for training.

48 Ibid p261.49 Werther William B, Davis Jr. Keith, Human Resources and Personnel Management, Fifth Edition, USA, p. 370.

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4.4 TRAINING DESIGN PROCESS

A general system model of training design process is as follows50:

TRAINING DESIGN PROCESS

50 Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand &Company LTD, 1999, p. 25.

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Conducting Needs Assessment

Ensuring Employees’

Readiness For Training

Creating a Learning Environment

Ensuring Transfer of Training

Developing an Evaluation Plan

Select Training Method

Monitor and Evaluate the Program


4.4.1 Training Need Assessment

The need assessment phase is the building block of a training program. The basis

for who must be trained, what must be trained, when training will occur, and

where the training will take place are accomplished in this phase. The product of

this phase is the foundation for all subsequent development activities.

A needs analysis provides you with a complete understanding of the shortcomings

of the system, while a task analysis looks strictly at the tasks performed on the

job51 .A need analysis looks not only at the tasks being performed but also at other

parts of the system that might yield clues at what might be done to improve it52.

Depending upon organizational goals, an organization may perform one, both, or

a hybrid of two.

4.4.2 Levels of Analyzing Training Needs

There are three levels of analysis for determining the needs that training can fulfill

these are:53

Organization analysis focuses on identifying where within the organization

training is needed.54

Task analysis attempts to identify the content of training – what an employee

must do in order to perform competently.55

Person analysis determines how well each employee is performing the tasks that

make up his or her job.56

51Raymond A Noe, Employee Training And development, 2nd Edition, USA., p. 24.52 Ibid. p. 24.53 Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, p269.54 Ibid. p. 260.55 Ibid. p. 260.56 Ibid. p. 260.

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THE NEEDS ANALYSIS PROCESS

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Do We Want To Devote Time and Money for Training?

Person AnalysisPerson Characteristics Input Output Consequences Feedback

Task Analysis or Develop a Competency Model Work Activity (Task) KSAs Working Conditions

Organizational AnalysisStrategic DirectionSupport of Managers & Peers for

TrainingTraining Resources


Training needs might surface in any one of these three broad areas. At a general

level, it is important to analyze training needs against the organizational

objectives and strategies. Unless the organization can do this, it may waste time

and money on training programs that do not advance the cause of the

organization.57

It is also essential to analyze the organization’s external environment and

internal climate. Trends in the strategic priorities of a business, judicial,

decisions, civil rights laws, union activity, productivity, accidents, turnover,

absenteeism, and on-the-job employee behavior will provide relevant information

at this level. In short, the first step is to relate training needs to the achievement of

organizational goals.

Task analysis requires a careful examination of the work to be performed after

training. It involves:

A systematic collection of information that describes how work is to be done, so

that standards of performance for that work can be determined.

Descriptions of how tasks are to be performed to meet the standards.

The competencies necessary for effective task performance. Job analysis,

performance appraisals, interviews (with jobholders, supervisors, and higher

management), and analysis of operating problems (quality control, downtime

reports, and customer complaints) all provide important inputs to the analysis of

training needs.

Finally, there is person analysis. At this level, training needs may be defined in

terms of the following general idea; the difference between desired performance

and actual performance is the individual’s training needs. Performance standards,

identified in the task analysis phase, constitute desired performance. Individual

performance data; diagnostic ratings of employees by their supervisors, peers, or

customers; records of performance kept by workers in diary from; attitude surveys;

interviews; or tests (job knowledge, work-sample, or situational) can provide

information on actual performance against which each employee can be compared

57 Ibid. p. 260.

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with regard to desired performance standards. Training may fill the gap between

actual and desired performance.

4.4.3 Transfer of Training

Transfer of training refers to trainees effectively and continually applying what

they learned in training on their jobs. The work environment plays an important

role in ensuring that transfer of training occurs. Transfer of training is also

influenced by trainee characteristics and training design.

4.4.3.1 Characteristics of Transfer of Training

The factors that support the positive transfer of training are as follows:

1. Supervisors and Co-Workers Support

Supervisors and co-workers encourage and set goals for trainees to use new skills

and behaviors acquired in training.

2. Task Cues

Characteristics of a trainee’s job promptly remind him to use new skills and

behaviors acquired in training.

3. Feedback Consequences

Supervisors support the application of new skills and behaviors acquired in

training.

4. Lack of Punishment

Trainees are not openly discouraged from using new skills and behaviors acquired

in training.

5.5. Extrinsic Reinforcement ConsequencesTrainees receive extrinsic rewards for using new skills and behaviors acquired in

training.

6.6. Intrinsic Reinforcement ConsequencesTrainees receive intrinsic rewards for using new skills and behaviors acquired in

training.

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4.4.3.2 Obstacles that Hinders Transfer of Training

Few obstacles in the environment that inhibit the transfer of training are as

follows:

1. Work Conditions

Trainee has difficulty using new knowledge, skills, or behavior because of

the following factors present in the work environment:

Time pressures

Inadequate equipment

Few opportunities to use skills

Inadequate budget

2. Lack of Peer SupportPeers do not support and discourage use of new knowledge and skills on the job.

They are unwilling to provide feedback and perceive training as a waste of time.

3. Lack of Management Support

Managers do not reinforce training or provide opportunities to use new

knowledge, skills, or behavior. They usually

Do not accept ideas or suggestions that are learned in training

Do not discuss training opportunities

Oppose use of skills learned in training

Communicate that training is a waste of time

Unwilling to provide feedback and reinforcement for trainees to use training

content.

4.4.4 Training MethodsNew training methods appear with passage of time. While some are well founded

in learning theory or models of behavior change (e.g., behavior modeling), others

result more from technological than theoretical developments (e.g., videotapes,

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computer-based business games). Training methods can be classified in three

ways; information presentation, simulation methods, and on-the-job training.58

4.4.4.1 Information Presentation Techniques

Information presentation techniques come under off-the-job training method and

it includes lectures, conferences, correspondence courses, videos, reading lists,

closed circuit TV, behavior modeling and systematic observation, programmed

instruction, computer-assisted instruction, sensitivity training, and long-rang

programs of organizational improvement.

4.4.4.2 Simulation Methods Simulation methods are another type of off-the-job training method and it consists

of the case method, role playing, programmed group exercises, the in-basket

technique, and business games.

4.4.4.3 On-The-Job Training Methods

The most widely used training methods take place on the job. The popularity of

these methods can be attributed to their simplicity and the impression that they are

less costly to operate. On-the-job training places the employees in the actual work

situations and makes them appear to be immediately productive.59 It is learning by

doing. For jobs that are difficult to simulate or can be learned quickly by watching

and doing, on –the- job training makes sense.60 On-the-job training methods

include orientation training, apprenticeship, near-the-job training (using identical

equipment but away from the job itself), job rotation, committee assignments (or

junior executive boards), understudy assignments, on-the-job coaching, and

performance appraisal.61

To choose the training method (or combination of methods) that best fits a given

situation, first define carefully what the trainer wish to teach. That is the purpose

of the needs assessment phase. Only then the trainer should choose a method that

best fits these requirements. To be useful, the method should meet the minimal

58 Ibid. p. 278.59 Decenzo/Robbins, Human Resource Management, 6TH Edition, USA: John Wiley & Sons INC, 1999, p. 230.60 Ibid. p. 230. 61 Wayne.F.Cascio, Managing Human Resources, 5TH Edition, USA:Irwin McGraw-Hills, 1998,p278.

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conditions needed for effective learning to take place; that is, the training method

should.62

Motivate the trainee to improve his or her performance.

Clearly illustrate desired skills.

Allow the trainee to participate actively.

Provide an opportunity to practice.

Provide timely feedback on the trainee’s performance.

Provide some means for reinforcement while the trainee learns.

Be structured from simple to complex tasks.

Be adaptable to specific problems.

Encourage positive transfer from the training to the job.

4.4.5 Evaluating Training ProgramsTo evaluate training, you must systematically document the outcomes of training

in terms of how trainees actually behave back on their jobs and the relevance of

that behavior to the objectives of the organization63.

62 Ibid p279.63 Ibid p 279.

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4.4.5.1 The Four Levels of Training Evaluation Perhaps the best known training methodology is Kirkpatrick’s Four Level

Evaluation Model64 i.e. reaction, learning, performance, and impact. The

chart below shows how the evaluation process fits together:

The first three-levels of Kirkpatrick’s evaluation -- Reaction, Learning, and Performance

are largely “soft” measurements, however decision-makers who approve such training

programs, prefer results (returns or impacts). This does not mean that the first three are

useless; indeed, their use is in tracking problems within the learning package:

64 http:/www.nwlink.com/~donclark/hrd/sat6.html#one.

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Reaction level describes how relevant the training is to the work the learners perform

(it measures how well the training requirement analysis processes worked).

Learning level defines the degree of relevance that the training package worked to

transfer of knowledge, skills and attitudes from the training material to the learners (it

measures how well the design and development processes worked).

Performance level consists of the degree that the learning can actually be applied to

the learner’s job (it measures how well the performance analysis process worked).

Impact informs you of the “return” the organization receives from the training.

Decision-makers prefer this harder “result,” although not necessarily in dollars and

cents.

“Information” for improving the learning package is provided by the first three levels

while the fourth-level gives you “impacts.” A hard result is generally given in dollars

and cents, while soft results are more informational in nature, but instead of

evaluating how well the training worked, it evaluates the impact that training has

upon the organization. There are exceptions. For example, if the organizational vision

is to provide learning opportunities (perhaps to increase retention), then a level-two or

level-three evaluation could be used to provide a soft return.

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CHAPTER – FIVE

LITERATURE REVIEW

EMPLOYEE DEVELOPMENT

“People are definitely a company’s greatest asset. It doesn’t make any

difference whether the product is cars or cosmetics. A company is only as good as the

people it keeps.”

Mary Kay Ash

5.1 CONCEPT

Employee development, by design is more future oriented and more concerned

with education than employee job-specific training. By education we mean that employee

development activities to instill sound reasoning process to ones ability to understand and

interpret knowledge rather then imparting a body of facts or teaching a specific set of

motor skills. Development therefore, focuses more on the employee personal growth.

Successful employees prepared for positions of greater responsibility have analytical,

human, conceptual and specialized skills. It is important to consider one critical

component of employee development: all employees, regardless of level, can be

developed65. Although it is critical for individuals to be trained in specific skills related to

managing-like planning, organizing, leading, controlling and decision-making.

5.2 EMPLOYEE DEVELOPMENT METHODS

Some development of individual abilities can take place on the job. Job rotation,

assistant-to positions, &committee assignments are three popular on the job techniques

while lecture courses and seminars, simulation exercises; and outdoors training are three

off-the jobs methods.

65 Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons INC, 1999, p. 232.

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5.2.1 On-The-Job Techniques

5.2.1.1 Job Rotation

Job rotation involves moving employees to various positions in the organization

in an effort to expand their skills, knowledge, and abilities. Job rotation can be

either horizontal or vertical rotation66. It turns a specialist into a generalist. In

addition to increasing the individuals experience and allowing him or her to

absorb new information, it can reduce boredom and stimulate the development of

new ideas.67 It can also provide opportunities for a more comprehensive and

reliable evaluation of the employee by his or her supervisor.

5.2.1.2 Assistant-To PositionsEmployees with demonstrated potential are some times given the opportunities to

work under a seasoned and successful manager, often in different areas of the

organizations. Working as staff assistants or, in some cases, serving on “special

boards”, these individual perform many duties under the watchful eye of a

supportive coach and are groomed for assuming the duties of the next higher

level.68

5.2.1.3 Committee AssignmentCommittee assignment can provide opportunities for employee to share in

decision making, to learn by watching others, and to investigate specific

organizational problems.69 When committee is of temporary nature, they often

take on task-force activities designed to solve a particular problem, certain

alternative solutions, and make a recommendation for implementing a solution.

These temporary assignments can be both interesting and rewarding to the

employee’s growth.

66 Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 288.67 Ibid. p. 289.68 Ibid. p. 437.69 Ibid. p. 437.

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5.2.2 Off-The-Job Training Techniques5.2.2.1 Lecture Courses and Seminars

Traditional forms of instructions revolve around formal lecture courses and

seminars.70

Using a digitized computer technology, a facilitator can be in one location giving

a lecture, while simultaneously transmitted over fiber optic cables, in real time to

several other locations. The most widely used simulation exercises include case

studies, decision games, and role-plays71.

These cases represent attempts to describe, as accurately as possible, real

problems that managers have to face. Trainees study the cases to determine

problems, analyze causes, develop alternate solutions, select what they believe to

be the best solution, and implement it. Simulated decision games and role playing

exercises put individuals in the role of acting out supervisory problems.

Simulation frequently played on a computer programmed, provide opportunities

for individuals to make decisions and witness the implications of their decisions

on other segments of organization.

5.2.2.2 Outdoors TrainingSome times refer to as wilderness or survival training; the primary focus of such

training is to teach trainees the importance of working together; getting as a team.

Outdoor training typically involves some major emotional and physical challenge.

This could be white water rafting, mountain climbing, paint-ball games, or

surviving a week in the “jungle”72. The purpose of such training is to see how

employees react to the difficulties that nature presents to them. The reality is that

today’s business environment does not permit employees to “stand alone”. This

has reinforced the importance of working closely with one another, building

trusting relationships, and succeeding as a member of a group73.

70 Wayne F.Cascio, Managing Human Resource, 5th Edition, USA:Irwin McGraw-Hill, 1998, p290.71 Ibid. p. 290.72 Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley & Sons INC, 1999, P. 234.73 Ibid. p. 234.

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CHAPTER – SIX

EMPLOYEE ORIENTATION AT THE BANK OF KHYBER

“You can’t force commitment, what you can do... You nudge a little here,

inspire a little there, and provide a role model. Your primary influence is the

environment you create.”

Peter Senge

6.1 ORIENTATION DEFINITION

“Orientation involves the introduction of new employees to the enterprise, its

functions, tasks and people.”74

6.2 OBJECTIVES Increase and improve productivity

Reduce the turnover rate

Reduce the time for learning new tasks

Foster uniform understanding among employees about the Bank

6.3 METHODOLOGY

The Bank of Khyber provides specific information to the new entrance in the

three major areas:

Material on company standards, expectations norms tradition and polices

Material on social behavior such as approved conduct, the work climate and

getting to know fellow workers and supervisor/controlling officer.

Material on the technical aspect of the job

The P& E Department in general and MIS in particular have the overall

responsibility for program planning and follow up (subject to top-management

review and approval).

74 Ibid. p. 385.

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6.4 EMPLOYEE ORIENTATION KIT

Employee Orientation Kit in BoK includes:

The Banks Organization Chart

Map of the premises.

Key terms unique to the banking industry and or job

Copy of specific job goals and descriptions

List of the Banks holidays-familiarization with SERVICE RULES

List of on the job training opportunities

Sources of information

Detailed outline of emergency and accident-prevention procedures

Sample copy of each important publication

Telephone numbers and locations of key personnel and operations

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CHAPTER – SEVEN

EMPLOYEE TRAINING AND DEVELOPMENT AT THE BANK OF KHYBER

“Studies by the American Society for Training and Development show

that every $1 spent on training generates $3 in new economic activity.”75

Robert Henkoff

7.1 TRAINING

“The process of teaching new employees the basic skills they need to perform

their job.”76

Training is the acquisition of technology, which permits employees to perform

their present job up to the standards. Training is also required to enable the Bank to offer

competitive services to its clients. Training is the process of developing qualities in

human resources that will enable them to be more productive.

7. 1.1 Objectives

Increase Bank’s productivity by:

Improving performance of employees.

Increasing adaptability and flexibility of each employee.

Increasing the level of commitment.

Reducing the employee turnover and absenteeism.

Provide vehicle for institutional growth’ through Manpower Development.

Aid Institutional strengthening by building professional competence.

Increase and improve productivity/efficiency, which leads to increased

profitability.

Foster uniformity in practice and procedure.

Improve standards of customer service.75 Wrether William B,Davis Jr.Keith,Human Resources And Personnel Management,Fifth Edition p 28176 Gary Dessler; Human Resource Management, Prentice-Hall of India Pvt Ltd, 2003, 187.

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Develop a common corporate culture

Aid in the management of change made necessary due to change in technology,

law/regulations, economic and political environment and competitive pressures.

Reduce the Gap between standard/desired performance and actual performance.

7.1.2 Purpose

The major purpose of training plan is to remove performance deficiencies,

whether current or anticipated, that are the result of employee’s inability to

perform at the desired level, and be more productive. Further, BoK’s training plan

is also very important because ever-changing financial/ banking sector demands

flexibility and adaptability in the employees.

7.1.3 Human Resource Training and Development DivisionIt is imperative for the Human Resource Development Division of the Bank not

only to provide educated and trained manpower so as to enable them to handle

their jobs more professionally and efficiently in all areas of the banking but also

to develop talent and add value to staff potential to enhance output, improve

profitability. With the growth of the bank of Khyber, the need for training both for

emerging new issues, as well as strengthening of basic competencies began to be

addressed.

7.1.3.1 Functions of Human Resource Division of the Bank of KhyberThe Human Resource Department of the Bank Of Khyber will perform the

following specific functions:

1. Assess training needs of the staff of the Head Office/ Divisions/ Departments/

Branches in consultation with the In Charge/Manager Concerned.

2. Draw a training plan where by every officer of the Bank specially at the level of

OG-1 and below should participate and have training in the core areas of The

Banking laws, procedures, advances, operations, foreign exchange, treasury, audit

and marketing.

3. Chalk out training schedule for the current year.

4. Arrange internal and external courses of the staff.

5. External courses to be attended at the institutes of repute via IBP, NIBAF, PIM,

NIPA, IPS, ICMAP, and British Council etc.

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6. Internal courses are arranged at head office premises for the subjects where in a

large number f officers need to be trained.

7. Such internal courses are arranged through different institutes, mostly through the

IBP.

8. The training schedules of the IBP and other well established training institutes to

be circulated to all branches and departments soliciting their nominations for

relevant courses.

7.1.4 Phases of Training and DevelopmentTraining and development program of the Bank of Khyber is designed in three

phases:

1. Assessment Phases

2. Implementation phase

3. Evaluation phase

7.1.4.1 Assessment of Training NeedsBoK uses two methods to assess the training needs of the employees. First, the

head office of the bank receives invitation from different training institutes

regarding different courses, seminars, and workshops; where after these are

communicated to the concerned branches, departments and divisions for their

input. Accordingly relevant staff is nominated against the concerned courses.

These nominations are later on provided to the respective institutes.

Secondly, to assess the training & development needs of each employee, a

questionnaire is designed comprising of two parts77: Section-1 to be completed by

employees (basic information) and Section-2 by the controlling officer. Section 2

plays the major in determining the training needs of an employee. Compilation of

this section involved the following steps:

77 See Annexure-1

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1. Development of Broad Competency Categories

Critical skills that employee at a given level or Job classification in the bank

needs to be more effective, e.g. General Banking, Advances, Foreign Exchange,

Management Skills, Computer Literacy, English Language Proficiency.

2. Development of Specific Competencies

Once broad category is selected the next step is to further define each and develop

a list of more specific competencies.

3. Development of a Measuring Scale A scale ranging from 1 to 5: (1) being least training required and (5) being

training required to a large extent.

4. Development of open-ended questionsTwo open-ended questions are designed to determine the employee’s growth;

career wise and profession wise).

7.1.4.2 ImplementationSuccessful implementation of training and development programs depend on

selecting the right program for the right people under the right conditions. The

first phase i.e. assessment identifies the right people and the right programs and

several other training and development considerations that help in making the

right conditions.

The following conditions are considered in order to increase the chances of the

program being effective:

1. Who participates in the program?

(Employees identified by the controlling officer)

2. Who teaches the program? (Panel of qualified bankers)

3. What media are used to teach? (Role-playing. Group participation exercises & Demonstrations)

4. Where is the program to be conducted?

(In-house and off-site; depending upon the resources available)

The implementation phase involves the actual delivery of training. This requires

resolving issues such as determining course content, scheduling courses,

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contracting/assigning instructors, choosing training methods, media and venue.

The following ideas are considered:

a. Curriculum CommitteeA Curriculum Committee is set up which will be responsible for the approval of

course schedule and course content and serve as the advisory body for training.

b. Specialized TrainingThe employees enter specialized streams or career paths. They are then being

imparted specialized training in their relevant field to become specialist in that

field. Thus training program is tailored to provide the required specialist training.

c. Banking Diploma ExamsThe Personnel Department offers some assistance with the DAIBP exams, at the

repeated requests of the employees.

It is planned, that an information packet will be prepared and distributed to all

interested. The packet will contain information on the content of the exam, books

and correspondence courses.

d. Teaching MethodsTeaching methods are changed from Classroom Lecture style to a more

participatory Workshop Approach. Here classroom training and OJT will be

carried out simultaneously.

e. Training MaterialThe training material used is relevant and is insured by the curriculum committee.

The training material address the skill base at the level of the participants and is

complied in a manner that can be used by any trainer at any location.

7.1.4.3 EvaluationOnce the training program is implemented, the concerned officer/ controlling

officer/ manager checks whether the training course has affected the performance

of that employee in that particular area.

An evaluation form evaluates any training program undertaken78. Evaluation

Techniques used are the feed back surveys of trainees, tests and results as

mirrored through customer comments, profitability, and decrease in audit

78 See Annexure-2

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objections, external audits, and comments of the employee’s immediate

supervisor.79

7.1.5 Training MethodsThe bank in order to increase the capabilities of the staff in present dynamic

environment employs two methods of training:

7.1.5.1 On The Job Training“It is a type of training in which an experienced employee adopts a new employee

to teach him or her how to perform job duties”80

On-the-job training (OJT) means having a person learn a job by actually doing it.

On- the -job training is provided to every employee, from mailroom clerk to

company’s president, when he or she joins a firm.

7.1.5.2 Off-The-Job Training Techniques

There are also many off-the-job techniques for training and developing managers.

Seminars

The bank offers traditional management development seminars and conferences. It

provides courses in areas ranging from accounting and controls to assertiveness

training, basic financial skills, information systems, project management,

purchasing management, and total quality management.

7.1.5.3 Academic InternshipsThe Bank also provides internship to new graduates. It is a sort of student’s

contract with a senior supervisor of the Bank to help him/her learn different, skills

and knowledge regarding banking system.

7.1.6 Training InstitutionsThe Bank’s training now relies on both internally and external arranged courses at

institutes of repute in the country. Whereas for subjects in which large number of

employees need to be trained, the Bank is conducting its internal courses in the

library cum conference room at the head office through IBP and other institutions.

The conference room has the capacity of 24 trainees. Training aids such as

79 Bank notes, BOK.80 Daft, Richard L; Management, The Dryden Press, Harcourt Brace College Publishers, 1997

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The Bank of Khyber


overhead and multimedia projectors are also available. The arrangement is

adequate for the present needs of the bank.

For specialized courses where the need is limited to few officers, the Bank relies

on the following institutes:

IBA (Institute O f Business Administration)

IBP (Institute Of Banking of Pakistan)

PIM (Pakistan Institute Of Management)

NIBAF (National Institute Of Banking And Finance)

NIPA (National Institute Of Public Administration)

Jaffar Brothers (Pvt.) Ltd

NBP (National Bank Of Pakistan)

MCB (Muslim Commercial Bank)

British Council.

The Bank is arranging an increasing number of courses in specific technical areas

such as Audit, Treasury and Foreign Exchange as per the requirements of these

departments.

The Bank is also trying to explore the possibility of obtaining affiliation with a

foreign institute of repute, such as Harvard Business School or Singapore Institute

of Technology.

7.1.7 Training Budget

The annual budget allocated for the training and development of employees of the

Bank is Rs.2 million. All costs of the trainees are borne by the Bank. The

materials provided to the trainees during a training session are free of cost.

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The Bank of Khyber


7.2 EMPLOYEE DEVELOPMENT AT THE BANK OF KHYBER

7.2.1 Definition of Employee DevelopmentDevelopment represents those activities that prepare an employee for future

responsibilities.”81

Development is training people to acquire new horizons, technologies, or

viewpoints. It enables leaders to guide their organizations onto new expectations

by being proactive rather than reactive. It enables workers to create better

products, faster services, and more competitive organizations. It is learning for

growth of the individual, but not related to a specific present or future job.

With the following objectives in mind, the Bank initiated the preparation of a

Human Resource Development policy and plan.

7.2.2 Human Resource Development Policy Features

The salient policy objectives of Human Resource Development Program are:

1. To develop skills to insure that every Officer at a minimum is capable and

qualified for his/her current position.

2. To continually develop skills in new and emergent Technologies/Issues such as

Computers, Leasing, SSC Financing and new financial products.

3. To offer an orientation course for new employees (General Banking).

a. To promote a common culture of the Bank of Khyber.

b. To familiarize the new entrants to the service rules of the BoK.

c. To ensure a basic level of understanding of General Banking.

4. To deepen the skill of experienced employees by offering Training made

necessary by:

a. New Regulations.

b. New Developments in Banking.

c. Technology adaptation/Innovations.

d. Refresh Traditional concepts in Banking.

81 William B Werther fr Keith Davis, Human Resource and Personnel Management, 5th Edition, Mc GrawHill Inc; Int’lEdition, 1996, glossary.

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The Bank of Khyber


5. Continue policy of encouraging employees to attend outside courses, so as to

utilize expertise of outside resource persons and expose the employees to enable

them to meet and exchange views with staff from other Banks and organizations.

6. Encourage employees to acquire additional education and professional

certification (DAIBP).

7. Assess the Training/Education needs of employees and evaluate and guide them

on a career path.

7.2.3 Employee Developing Method

The Bank of Khyber besides arranging training sessions has started a sponsorship

MBA (Evening) program for employees of the bank since 1999. Selection is made

on the basis of merit among the eligible candidates.82

For eligibility an officer must have a minimum of three years service with the

bank and will have to sign a bond to serve the bank for five years after completion

of the degree.

Under this scheme the bank bears 80% of the fee besides paying convenience

allowance.

The bank encourages and assists employees to take Banking Diploma

Examinations and gave promotions and other rewards to the employees on

acquiring different stages of DAIBP according to IBP rules.

82Employee Development Notes,BOK.

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The Bank of Khyber


CHAPTER – EIGHT

ANALYSIS

“Read not to contradict and confute, nor to believe and take for granted...

but to weigh and consider.”

Francis Bacon

Data collection methods are an integral part of research. There are several data

collection methods, each with its own advantages and disadvantages. Interviewing,

administering questionnaires, and observing people and phenomena are the main data

collection methods in research.

Questionnaires have been distributed among employees apart from the interviews

to know their response regarding certain issues of employee orientation, training and

development. A questionnaire is a pre-formulated written set of questions to which

respondents record their answers. A questionnaire is an efficient date collection

mechanism. Questionnaires were personally administered. Any doubt that the

respondents have on any question been clarified on the spot. The research topic was

introduced to the respondents and they were motivated to give their frank answers.

The questionnaires were distributed among a sample of twenty employees of the

whole population of three sixty-two employees. Sampling makes it easy to generalize the

responses to the whole population. In data analysis step, the data gathered was

statistically analyzed and interpreted to identify the potential or existing problems.

This section includes the graphical presentation of the data analyzed, the

interpretation of the data analyzed, personal comments of the researcher and a concluding

summary of the whole section.

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The Bank of Khyber


1. Who conducts employee orientation?

Authorities Percentages

IBP 14%

Immediate Supervisor 30%

HRD 56%

Interpretation

The response of the employees at BoK shows that new employees are given

formal orientation, which is mostly conducted by the Human Resource Department and

immediate supervisors of the employees. IBP also provides orientation in cases where

more formal orientation is required. Such orientations are given during the first week of

joining the Bank and are carried out at the very site of the employee work place. Most of

the employees responded that they were given a lecture regarding the Bank’s background

and human resource polices. A new employee’s experiences during the initial period with

an organization can have a major impact on his or her career.

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The Bank of Khyber


2. What type of material is given during orientation?

Material Percentages

Service Rules 61%

Org. History & Products 22%

Nothing 17%

Interpretation

To make the new employee familiarize with and adapt to the new working

environment the employees are given material regarding the organizational history,

various products of the Bank and service rules. The employees responded that the

supervisors show their support by providing guidance and different material of the Bank.

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The Bank of Khyber


3. Are you satisfied with the training need assessment (TNA) system of the bank?

Options Percentages

Yes 78%

No 22%

Interpretation

Most of the employees are satisfied with the training need assessment system of

the Bank. About twenty two percent of the employees of the bank are not satisfied with

the TNA system because they are of the view that the Bank should adopt new methods

that can analyze their skills more accurately. The satisfied employees are happy from

their supervisors and their support in analyzing their needs.

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The Bank of Khyber


4. Is going through different training programs voluntarily?

Options Percentages

Yes 50%

No 50%

Interpretation

The response of the employees’ show that they go through different training

programs voluntarily as well as selected by their supervisors. The Bank provides TA/DA,

good accommodation as well as leave with pay to the trainees. Some of the employees

responded that the Bank should also provide monetary rewards to the trainees to motivate

them to perform better. Moreover they argued that the training programs should be given

some weightage in the ACR of the trainee.

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The Bank of Khyber

Approach toward trainee selection

Yes50%

No50%


5. Does the bank bear all the costs of the trainee?

Options Percentages

Yes 100%

No 0%

Interpretation

The Bank of Khyber bears all the costs of the trainees. Accommodation, TA/DA

and different material of the training are provided to the trainees free of cost.

This shows that the Bank of Khyber has a positive attitude towards the

development of its employees .To encourage the employees to undergo training programs

different incentives are provided to them.

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The Bank of Khyber

Percentage of financial assisstance provided by the Bank

Yes100%

No0%


6. Does the training program fulfill your training needs?

Options Percentages

Yes 78%

No 22%

Interpretation

Majority of the employees at the Bank are satisfied with the training system of the

Bank. They responded that the training system fulfills all their needs and requirements.

The trainers were very competent and had full command over their respective subject.

Some of the dissatisfied employees complained that they had gone through irrelevant

trainings. The supervisors were not good enough to assess the training needs of their

employees and hence they were sent for trainings, which were not relevant to their job.

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The Bank of Khyber

Satisfaction level of training program

Yes78%

No22%


7. Is the trainer capable enough to run the training program?

Options Percentages

Yes 100%

No 0%

Interpretation

The training programs are arranged by the Bank of Khyber to help employees

improve their skills, knowledge and attitude. For this purpose competent trainers are

hired to train the employees. The trainers’ are capable enough to handle all the problems

of the training session.

For specialized courses BoK relies on the competent trainers of IBA, IBP, PIM,

NIBAF and NIPA.The trainers are skilled enough to improve the performance on the

present job of the employees and to bring them up to standards.

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The Bank of Khyber

Competency of Trainer

Yes100%

No0%


8. Is there any practical aspect of training given to you?

Options Percentages

Yes 83%

No 17%

InterpretationMost of the employees are satisfied with the training system of the Bank. To learn

the practical aspect of their jobs the trainer trained them in a successful manner. For this

purpose the employees are given written material to practice. If the employee faces any

sort of problem in the training session then the Bank tries to solve the problem in

collaboration with the training institute. Very less percentage of the employees are not

satisfied with training system because they argued that there is no practical aspect of the

training. The dissatisfied employees added that only written materials are provided to the

trainees and no opportunity is provided to them to practice what they have learnt.

The trainers are required to teach employees the practical side of their jobs. They

should give them an opportunity to practice what they have learnt in the training session.

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The Bank of Khyber

Practical Aspect of Training

Yes83%

No17%


9. Does the training method encourage positive transfer of knowledge and skills from the training to the job?

Options Percentages

Yes 100%

No 0%

Interpretation

All of the respondents agreed that they effectively and continually apply at the

work place, things that they learn from training programs. The employees were of the

view that the trainings had a positive impact on their performance and improving their

skills. The trainers effectively evaluate every trainee by taking tests. These tests help the

trainees to know about their capabilities and their weaknesses.

The training programs of the Bank help the employees to improve their

performance on the present jobs. The work environment of the Bank ensures positive

transfer of knowledge to the job. Transfer of training is also influenced by trainee

characteristics and training design.

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The Bank of Khyber

Practicability of Transfer of Training

Yes100%

No0%


10. Is the change positively related to the achievement of organizational goals?

Options Percentages

Yes 100%

No 0%

InterpretationThe Bank of Khyber arranges different training sessions for its employees to

efficiently achieve the objectives of the organization. The response of the employees

shows that these trainings help them to contribute actively to the overall organizational

objectives.

This shows that the objectives of the training programs are parallel with the

Bank’s objectives.

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The Bank of Khyber

Interrelationship of Training and Organizational Goals

Yes100%

No0%


11. What does the Bank do, if the employee fails to improve skills after training?

Post Failure Strategies Percentages

Further Training 22%

Chance For Improvement 22%

Nothing 56%

Interpretation

In most of the cases if the employee fails to improve their skills, knowledge and

attitude after training the Bank over looks it. For some employees more training sessions

were arranged and they are given another opportunity to improve their skills and

knowledge.

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The Bank of Khyber

Post Failure Strategies by the Bank

Nothing56%

Further training22%

Chance for improvemet

22%


12. Does the training have any impact on your performance appraisal?

Options Percentages

Yes 88%

No 12%

InterpretationThe performance appraisals of the employees contain a section regarding the

training session being attended by the employees. Majority of the employees responded

that the training has positive impact on their performance appraisal and it also helps them

to increase their productivity. Some of the employees’ responses show that they wanted

the training programs to be given more weightage in the performance appraisal. This will

motivate the employees to attend the training sessions.

The training programs help the employees to develop their skills; knowledge and

attitude that help them advance in their career.

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The Bank of Khyber

Impact of Training on Performance Appraisal of Employee

Yes88%

No12%


13. Is the board of directors supportive to the training system?

Options Percentages

Yes 100%

No 0%

InterpretationThe responses of the employees’ show that the Board of Directors of the Bank is

quiet supportive to the training system of the Bank. BOD shows its supportiveness in

terms of allocating two million rupees annually to the training programs. The upper

management always tries to arrange different training courses for the employees and also

appreciate the employees who under go these training programs.

BoK’s top management is committed to employee training and development.

Training is considered as a part of the corporate culture of the Bank.

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The Bank of Khyber

Ratio of Supportiveness of BOD

Yes100%

No0%


14. Do you think the budget and other resources allocated for the training programs are enough?

Options Percentages

Yes 94%

No 6%

InterpretationMajority of the responses of the employees’ show that the budget and other

resources allocated for the employee training and development is enough. The annual

budget allocated for the training and development of employees of the Bank is Rs.2

million. All costs of the trainees are borne by the Bank. The materials provided to the

trainees during the training session are free of cost.

The Bank is arranging an increasing number of courses in specific technical areas

such as audit, treasury and foreign exchange as per the requirements of these

departments. The Bank is also trying to explore the possibility of obtaining affiliation

with a foreign institute of repute, such as Harvard Business School or Singapore Institute

of technology.

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The Bank of Khyber

Aptness of Budget and Resources Allocated for Training

Yes94%

No6%


15. What improvements do you think are necessary to be made, in order to make the training and development system effective and efficient?

Areas Percentages

Establishment of BoK Training Institute 61%

Job Related 22%

Training Methods 6%

TNA System 11%

Interpretation

The employees responded that the Bank should try to establish its own training

institute. This will save the costs of the Bank. Moreover more employees will be able to

get trained in its training institute. The employees recommended that they should be

provided training in their respective and relevant areas. The training methods should be

updated from classroom settings, seminars and workshops to on -the -job training. On-

the-job training methods are simple and less costly to operate. The training need

assessment system of the Bank is more subjective in nature and does not identify the

needs and requirements of the employees more objectively.

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The Bank of Khyber

Improvements in the Employee Training and Development System

61%22%

6%11%

Establishment of BoK Training Institute Job related

Training Methods TNA System


CONCLUDING SUMMARY

The response of the employees at BoK shows that new employees are given

formal orientation, which is mostly conducted by the Human Resource Department and

immediate supervisors of the employees. IBP also provide orientation in cases where

more formal orientation is required. Such orientations are given during the first week of

joining the Bank and are carried out at the very site of the employee work place. To make

the new employee familiarize with and adapt to the new working environment the

employees are given material regarding the organizational history, various products of the

Bank and service rules.

Most of the employees are satisfied with the training need assessment system of

the Bank. About twenty two percent of the employees of the bank are not satisfied with

the TNA system because they are of the view that the Bank should adopt new methods

that can analyze their skills more accurately. The response of the employees’ show that

they go through different training programs voluntarily as well as selected by their

supervisors. The Bank provides TA/DA, good accommodation as well as leave with pay

to the trainees. Some of the employees responded that the Bank should also provide

monetary rewards to the trainees to motivate them to perform better. Moreover they

argued that the training programs should be given some weightage in the ACR of the

trainee.

Majority of the employees at the Bank are satisfied with the training system of the

Bank. The trainers are very competent and have full command over the subject. The

trainers’ are capable enough to handle all the problems of the training session. Some of

the dissatisfied employees complained that they had gone through irrelevant trainings.

The supervisors were not good enough to assess the training needs of their employees and

hence they were sent for trainings, which were not relevant to their job. If the employee

faces any sort of problem in the training session then the Bank tries to solve the problem

in collaboration with the training institute. Very less percentage of the employees are not

satisfied with training system because they argued that there is no practical aspect of the

training. The employees were of the view that the trainings had a positive impact on their

performance and improving their skills. The trainers effectively evaluate every trainee by

taking tests. The training programs objectives are parallel with the Bank’s objectives. The

work environment of the Bank ensures positive transfer of knowledge from the training

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The Bank of Khyber


to the job. In most of the cases if the employee fails to improve their skills, knowledge

and attitude after training the Bank over looks it.

Some of the employees’ responses show that they wanted the training programs to

be given more weightage in the performance appraisal. This will motivate the employees

to attend the training sessions. The responses of the employees’ show that the Board of

Directors of the Bank is quiet supportive to the training system of the Bank. BOD shows

its supportiveness in terms of allocating two million rupees annually to the training

programs. The employees responded that the Bank should try to establish its own training

institute. This will save the costs of the Bank. Moreover more employees will be able to

get trained in its training institute.

The employees recommended that they should be provided training in their

respective and relevant areas. The training methods should be updated from classroom

settings, seminars and workshops to on -the -job training. On-the-job training methods

are simple and less costly to operate. The Bank is required to consider the will of the

employees and encourage them to give novel ideas. This will improve the competitive

position of the Bank.

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CHAPTER – NINE

FINDINGS

The following findings are made after the analysis and interpretation of the

current employee orientation, training and development system of the Bank:

New employees are given formal orientation, which is mostly conducted by the Human

Resource Department, immediate supervisors of the employees and IBP. The employees

are given only a lecture regarding the Bank’s background and human resource polices in

the orientation process.

The training need assessment system of the Bank is more subjective in nature and does not

identify the needs and requirements of the employees more objectively.

The Bank is conducting its internal training courses in the library cum conference room at

the head office through IBP and other institutions. The small conference room has the

capacity of just 24 trainees. For specialized courses BoK relies on the competent trainers

of IBA, IBP, PIM, NIBAF and NIPA. The training system fulfills all their needs and

requirements but it is very expensive for the Bank in long run.

The employees are given written material in the training program to practice. Sometimes

no opportunity is given to the trainees to practice what they have learnt in the training

session.

The employees occasionally apply on their jobs what they had learnt in training. When the

employee fails to improve his/her skills, knowledge and attitude after training then in most

of the cases the Bank neglects the performance of the employees.

The training programs are given no weightage in the performance appraisals therefore it

discourages the employees who have been through training83.

83 See Annexure 3.

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The Bank of Khyber


RECOMMENDATIONS

“To define is to destroy, to suggest is to create.”

Stephane Mallarme

The following recommendations are based on the findings and are suggested for

the better performance of the Bank.

Apart from providing the different material, the Bank should try to introduce the

new employee to his /her manager and coworkers and to the overall culture of the

organization. The orientation program should review the specific duties and

responsibilities of the new member’s job and provide a tour to the organization’s

physical facilities.

The TNA system of the Bank is more subjective in nature. The Bank should try to

involve the employees in assessing their needs. The Bank is required to consider

the will of the employees and encourage them to give novel ideas. This will

improve the competitive position of the Bank.

To avoid giving irrelevant trainings to the employees the managers of the Bank are

required to analyze their training needs carefully. This will save the resources of

the Bank. The trainers are required to teach employees the practical side of their

jobs. They should give them an opportunity to practice what they have learnt in the

training session.

The Bank of Khyber is required to modify its current in-house training methods.

This will help the Bank to save time and costs. The training methods should be

updated from classroom settings, seminars and workshops to on -the –job training.

On-the-job training methods are simple and less costly to operate.

BoK is required to evaluate post-training performance of the employees. It should

develop a mechanism that includes positive reinforcement for the trainee. This will

motivate them to polish their skills, gain knowledge, and help develop their

attitude.

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BoK is required to consider the training programs being attended by the employees

in their performance appraisals. As the existing performance appraisal does not

contain any weightage given to the training programs84.

The Bank should try to establish its own training institute. This will save the costs

of the Bank. Moreover more employees will be able to get trained in its training

institute.

A curriculum committee shall be established that meet from time to time to review

the curriculum and materials of training session.

Training department of the Bank is required to create a library of material by

designing, writing some, obtaining from the outside sources and adapting yet other

materials to the BoK environment and culture.

The trainers are required to teach employees the practical side of their jobs. They

should give them an opportunity to practice what they have learnt in the training

session.

84 See annexure 3

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The Bank of Khyber


CHAPTER – TEN

PROPOSED ORIENTATION PLAN FOR BoK

‘Everything important is already known, the only thing is to rediscover it.’

Anon

The Bank of Khyber is required to carefully match the Bank’s and employee

expectations during the initial period of employment. A good orientation process will

help new employees adjust to their current position as well as the culture of the Bank.

The orientation plan provides an avenue in which the company’s vision and mission can

be clearly and consistently communicated so that the new employees can immediately

understand their role. When orientation is done well it creates the effect of everyone

pulling in the same direction.

10.1 AN ORIENTATION PLAN IN THREE PHASES

An orientation plan of the Bank of Khyber for new hires and their managers to

help guide the employee through their initial orientation process is as follows:

10.1.1 Phase 1: Pre-Orientation It occurs before the start date in the form of a mailed package. The Bank is

required to launch an orientation process when the job is being offered or upon

acceptance. Some of the key items in this package can include history, annual

review, organizational chart, vision, mission, key policies, benefits overview, as

well as a copy of the orientation plan checklist. Pre-orientation is a unique and

highly viable approach in providing information and creating a professional

positive first impression. In this highly competitive market, it will reinforce the

candidate's decision to join BoK.

10.1.2 Phase 2: Job-Site Orientation It occurs during the first and second day, focusing on the physical understanding

of the workplace and includes workplace tours, introductions, equipment, hazard

identification, and a department overview. It also provides time to revisit unclear

policies and procedures. Where there are no Human Resources Personnel, the

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The Bank of Khyber


Hiring Authority or Manager is often very busy and can delegate Phase 2 of the

orientation process to others. The buddy system is effective here, whereby a new

employee is paired up with an experienced or senior employee who will take

personal interest in their development and answer any queries.

10.1.3 Phase 3: Job-Specific Orientation It occurs during the first few weeks, focusing on details such as specific duties,

job description, budgets, tools, software, and health and safety. Alternatively, it

can be divided and delivered in manageable information slices and tied closely to

the probation period. This result in a well-documented paper trail useful in future

performance management. During this time, frequent coaching and feedback

sessions will ensure that everything is on the right track. Both parties can examine

how they will work together. The new employee truly benefits from close contact

with the immediate supervisor by gaining a clear understanding of established

goals, expectations, and responsibilities. BoK can also conduct a quiz or test to

ensure that learning has taken place.

An organized, well-executed orientation plan builds a strong foundation for

learning to take place; and while it may include a new welcome lunch, the

numerous benefits of developing and using a comprehensive checklist will be

long lasting.

10.2 THREE-PHASE ORIENTATION PLAN CHECKLIST1. Pre-Orientation

2. Job-Site Orientation

3. Job-Specific Orientation

1. Employee Name:___________________________________

Department:____________ Start date:____________

10.2.1 Pre-Orientation (Package mailed before start date)1. Overview of history, funding, vision, mission, values and general organizational

structure

Annual Review and Organizational Chart

2. Standard policies and procedures

Hours of Work and Breaks.

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Dress Code and Conduct

Attendance, Reporting Illness and Punctuality policy

Vacation/ Overtime

Probation Period

Health & Safety policy

Performance Management/ Salary policy

Employee Recognition Plan

Other policies as appropriate and access point of all policies

3. Compensation and Benefits

4. Employee counseling, grievance procedures, Unions

Answer any questions arising from the above mailed package phase to ensure that

the prospective employee has basic and clear understanding of conditions of

employment. Some policies may require greater explanation throughout

orientation process.

10.2.2 Job-Site Orientation (1st and 2nd day)1. Review Checklist of Three Phase Orientation Plan (with "Buddy" or Manager)

Provide critical policies, probation period and business plan or strategic

plan

2. Introduction to co-workers and management

3. Tour workplace, visit workspace, lunchroom, washrooms and first aid locations

4. Local/department overview - relationships with departments, volunteers and Head

Office

5. Parking, local transportation and internal mail

6. Workplace security, hazards, controls, fire exits, emergency equipment location

and use

7. Communication methods, e.g. telephones, memos, intranet, bulletin boards

8. Awards and incentive activities

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10.2.3 Job-Specific Orientation (first few weeks)

1. Review Checklist of Three-Phase Orientation Plan (with Manager)

Answer any questions arising from the previous two phases before commencing

third phase.

2. Specific duties, responsibilities, budgets and expectations by supervisor

3. Detailed review of job description and skills required

4. Training/staff development/ educational opportunities and requirements

5. Legal rights/responsibilities of workers and employers under Occupational

Health and Safety Act

6. Whom to talk to if the job is not clear

Completion and Signature Area (only when ALL items are checked)

Employee Comments: (Note ALL concerns, unclear policies, procedures and duties, etc.) 1. _________________________________________________________2. _________________________________________________________3. _________________________________________________________4. _________________________________________________________

Signature of employee:______________________________

Date of completion - Pre-Orientation:____________

Signature and comments of HR/Hiring

Authority:_________________________________________________________

Date of completion - Job-Site phase:_________________

Signature and comments of

Buddy/Manager:_________________________________________________________

Date of completion - Job-Specific phase:____________

Signature and comments of Manager:________________________________________

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The Bank of Khyber


CHAPTER ELEVEN

PROPOSED PLAN OF EMPLOYEE TRAINING AND DEVELOPMENT FOR BoK

EMPLOYEE TRAINING

“The systematic development of the attitudes/knowledge/skill behavior

patterns required by an individual in order to perform adequately a given task or

job85.”

EMPLOYEE DEVELOPMENT

Employee development on the other hand, generally focuses on the future jobs in

the organization. As the employee’s job and career progresses, new skills and abilities are

required.

11.1 PROPOSED IN-HOUSE TRAINING AND DEVELOPMENT PLAN

The Bank of Khyber is required to modify its current in-house training methods to

save time and costs. The external courses arranged by the Bank are effective but they are

very expensive. Therefore fewer employees are trained every year. The following figure

presents the proposed in-house employee training and development plan for the Bank of

Khyber.

85 Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company Ltd., 1999, p. 2.

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PROPOSED IN-HOUSE TRAINING AND DEVELOPMENT PLAN

The proposed plan has three main phases:

1. Assessment phase.

2. Training and development phase

3. Evaluation phase.

11.1.1 Assessment Phase

The assessment phase serves as a foundation for the entire training effort. Both

the training and development phase and the evaluation phase depend on inputs

from assessment phase. The purpose of the assessment phase is to define what

should the employee learn in relation to desired job behaviors. This phase

includes the following activities:

i. Training needs assessment

ii. Set training goals

i. Training Needs AssessmentTraining need assessment refers to the process used to determine if training is

necessary.

Because needs assessment is the first step if it is poorly conducted, training will not

achieve the outcomes or financial benefits the company expects.

BoK uses two methods to assess the training needs of the employees. First the managers

select the trainees. This is a biased approach to assess the training needs of the

employees. Secondly, to assess the training & development needs of each employee, a

questionnaire is designed comprising of two parts: Section-1 to be completed by

employees (basic information) and Section-2 by the controlling officer. The answers of

section-2 questions are based on the perceptions of the controlling officer. This is also a

subjective approach adopted by the Bank.

In addition to performance appraisal the Bank is required to adopt the following

methods to analyze the needs of the employees more objectively:

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a. One-to-One InterviewThe managers are required to ask the employees about their deficiencies either by

having a face-to-face interview or by telephone. The employee through this

method will be in direct contact with the managers. The managers are required to

motivate the employees to have an open discussion with them.

b. Using Questionnaires

The managers can also use a comprehensive questionnaire that clearly identifies

the needs and requirements of the employees.

c. Document Analysis

The managers of the Bank can review the existing personal documents of the employee.

After reviewing the manager then is required to tactfully analyze the deficiencies of the

employee. And accordingly training sessions should be arranged.

d. ObservationThe managers of the employee can also observe and review the employees in their

natural work environment and their behaviors or other items of interest be noted

and gaps in their performance be identified.

e. Advisory Committee MethodsThe Bank can also establish an advisory committee consisting of experienced and

skillful bankers. The advisory committee would identify the deficiencies of the

employee. The identification of the deficiencies will be based on the views of

more then one senior managers and hence will suggest the training course

appropriate for the employee to improve or overcome the gaps between the

desired and the actual performance of the employee.

ii. Set Training Goals The goals of the training program should relate directly to the needs determined

by the assessment process. Course objectives should clearly state what behavior

or skill will be changed as a result of the training and should relate to the mission

and strategic plan of the Bank. Setting goals will help the Bank to evaluate the

training program and also to motivate employees. The Bank should allow

employees to participate in setting goals that will ultimately increases the

probability of success of the Bank.

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11.1.2 Training and Development PhaseThe purpose of this phase is to design the environment in which the first phase

objectives can be achieved. The Bank in this phase is required to choose training

methods and techniques carefully and deliver them systematically in a supportive,

encouraging environment, based on sound principles of learning. This phase

includes the following activities:

i. In -house training venues

ii. Training methods

iii. Curriculum committee

iv. Resource persons

v. Training and development library

vi. Training calendar

i. In-House Training Venues

In –housing training for reasons of cost, be held in Bank premises. Training will

go to the participants rather participants going to the training: On-the-job training,

in particular, will be based upon the largest BoK branch in the selected area. For

the other forms of training, however, the environment must be conducive to study;

where the Bank’s premises are unsuitable for training, other alternative premises

should be proposed, with justification and costing, for approval by manager,

personnel division.

ii. In-House Training Methods The training methods that the Bank should employ in its in-house training

programs are as follows:

Lectures

Seminars

Workshops

Symposia

Discussion groups

Brainstorming

Case studies

Written and verbal tests

Group activities

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Individual activities

Group presentations

Individual presentations

On-the-job training

iii. Curriculum CommitteeTo ensure that the curriculum and associated materials for in-house training meet

the requirements of the Bank in achieving the levels of quality that it needs of its

staff, a curriculum committee shall be established that meet from time to time to

review the curriculum and materials for content, relevance and quality.

iv. Resource Persons

The Bank cannot afford to maintain a large permanent establishment of training

officers whose sole task is to prepare and deliver training courses. For the Bank’s

need it is preferable to have a small core establishment and supplement this core

with a pool of resource persons.

Resource persons are the officers of the Bank selected for their knowledge, skills

and experience and trained in the methods of training delivery. In addition to the

training they receive in delivery (teaching) methods, resource persons are also

trained for the delivery of courses related to their expertise, using the material that

the Bank has prepared or acquired from other sources. Resource persons, having

completed their training as resource persons, return to their normal work place

and resume their day-to-day work.

v. Training and Development Library

Training department of the Bank is required to create a library of material by

designing and writing some, by obtaining from the outside sources and by

adapting yet other materials to the BoK environment and culture. Where BoK

creates its own materials, there must be a process of pre-delivery review and,

where necessary, editing of material. Once editing has been completed, the draft

will be submitted to the curriculum committee for clearance. Resource persons

will be the most frequent creators of the materials.

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vi. Training CalendarThe delivery schedule in the first year will be determined principally by the

preparation of the materials. Annual review and revision of the Bank’s corporate

plan will determine the timing of several of the modules. The aim will be to

remind managers and personnel of their expected input and how that input should

be designed and delivered.

The resource persons to run concurrently the several courses/modules for different

cadre levels will use the delivery schedule. The participants will be given not less

than four weeks notice of the course/module dates in joining instruction letters.

11.3 Evaluation Phase

Finally, if both the assessment phase and the training and development phase have

been done competently, evaluation should present few problems. Evaluation must

provide a continuous stream of feedback that can be used to reassess training

needs, thereby creating input for the next stage of employee development. This

phase includes the following activities:

i. Develop criteria

ii. Monitor training

iii. Evaluate training

iv. Evaluate transfer of training

v. Feed Back.

i. Develop CriteriaThe curriculum committee and the resource persons of the Bank will develop the

standards against which the trainees will be evaluated. These standards will

depend upon the type of the training session.

ii. Monitor TrainingThe resource persons will monitor the in-house training venue, media and the

trainees. If he/she feels any discrepancy in the training venue, media and material

then he/she will report to the curriculum committee.

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iii. Evaluate Training Training evaluation is essential for the maintenance of quality and relevance.

Curriculum committee of the Bank will make an evaluation at least twice a year.

Every participant of every course, in-house or external, has to complete a written

report at the earliest opportunity after completion of the course: for in-house

training events, the penultimate session will be training evaluation: for external

courses, participants will complete, and submit to the Training Department, the

report within 24 hours of their return to work at their normal work place at the

Bank.

The training department will take immediate action to rectify shortcomings in in-

house training after constructive criticism from majority of the participants. The

curriculum committee shall take a sample course evaluation reports to gain some

insight into the participant reaction to courses, to identify those features that are

persistently remarked upon and to make enquires about the action taken by the

Training Department.

iv. Evaluate Transfer of TrainingThe training department will be required to evaluate if the trainees are effectively

and continually applying what they have learnt in training on their jobs. The Bank

should design the training programs in a manner that considers the ability of the

employee to learn the material and to use it effectively, and to make the most

efficient use of resources possible.

v. FeedbackThe information developed during the evaluation phase provides feedback. This

feedback will be new input to the assessment, training and development, and

evaluation. It is also important that employees be motivated by the training

experience. Employee failure in the program is not only damaging to the

employee but a waste of money as well. Selecting the right trainees is important

to the success of the program.

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11.2 TARGET PERSONNEL

All employees of the Bank fall within the target area and the Bank will ensure, to

the extent that resources permit, all employees receive trainings regularly.

Under this plan the Bank shall be providing training to the following segments:

Management

Senior management

Middle management

Personnel engaged in credit operations

Front office personnel

Back office technical personnel

Back office service personnel

11.3 PRIORITIES

The priorities for this plan are determined by the need to ensure that:

Officers in position of authority have the knowledge and skills to carry out their

functions properly within a profit/cost center structure in which there is increasing

decentralization and accountability is strengthened.

Credit specialists have a wider range of skills commensurate with a broader, full

loan cycle responsibility and a stricter physical supervision of the beneficiary

enterprise.

Front office personnel are fully conversant with the products and service the Bank

officers and are able to provide a speedy, accurate service to the Bank’s customers.

Effective use of the Bank’s investment in information technology and systems.

The professional development of each employee is planned and is treated

equitably.

The overall priorities will be to train the following categories of employees:

Officers not yet qualified for their current position.

Officers not yet qualified for the next cadre level.

Officers making a career path change.

Computer literacy.

Introduction of new products and services.

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11.4 INDIVIDUAL CRITERIA

The training department, in collaboration with the personnel department, will

prepare a nominal roll of employees in each segment, identifying the courses that are

required by each individual to meet the minimum criteria for the position currently held,

the minimum criteria for the next cadre level and basic computer literacy levels.

11.5 MANDATORY IN-HOUSE COURSES

The in-house training curriculum for each cadre in every career path will contain

three categories that are as follows:

11.5.1 Mandatory

An officer will not qualify for, nor will be assigned; a specific cadre unless he/she

has success fully completed the mandatory courses prescribed for the cadre level.

11.5.2 RecommendedSuccessful completion of recommended training will improve the ranking of a

candidate in the short-listing for a vacant post in the Bank.

11.5.3 Voluntary

Voluntary courses are those, which will enhance an officer’s ability to perform

without being critical to his/her performance in his/her current post.

Courses that are voluntary or recommended at one cadre level may be mandatory

at another, for example: an advanced computer literacy qualification will be

voluntary at one level, recommended at the next level and mandatory at the

subsequent level n some career paths.

11.6 TRAVEL

11.6.1 ParticipantsTravel by participants will be governed by BoK travel regulations; course-joining

instructions will stipulate the form of travel and costs.

11.6.2 Resource Persons

Travel by resource persons will be governed by BoK travel regulations; course-

joining instructions will stipulate the form of travel and costs.

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11.6.3 BoK Instructors

Travel by BoK instructors will be governed by BoK travel regulations; course-

joining instructions will stipulate the form of travel and costs.

11.6.4 Guest Speakers

Travel means and class will be agreed between the Bank and each guest speaker

individually when the terms and conditions of the commission are discussed.

11.7 ACCOMMODATION AND SUBSISTENCE

11.7.1 Participants

Accommodation for the participants will be governed by BoK travel regulations;

course-joining instructions will stipulate the type of accommodation and the level

of the subsistence allowance.

11.7.2 Resource PersonsAccommodation for the resource persons will be governed by BoK travel

regulations; course-joining instructions will stipulate the type of accommodation

and the level of the subsistence allowance.

11.7.3 BoK InstructorAccommodation for the resource persons will be governed by BoK travel



11.7.4 Guest SpeakerAccommodation for the resource persons will be governed by BoK travel



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http://www.banking/history/pakistan.com

http://www.google.com.pk/

http://www.bok.com.pk/