Internship Report by Sana-u-llah

8/4/2019 Internship Report by Sana-u-llah

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TABLE OF CONTENTS

Page #

Acknowledgement 2

Preface 3

Transmittal Memorandum 5

Executive summary 7

SECTION # 1

1.1 Introduction to the organization 91.2 Business volume 101.3 Objectives of the bank 111.4 Functional departments of the bank 12SECTION # 2

2.1 Objectives of studying the organization 132.2 Nature of the business 142.3 Product Lines of the bank 152.4 Competitors 162.5 Operational zones 172.6 Board of directors 182.7 List of products 19SECTION # 3

HUMAN RESOURCE DEPARTMENT FUNCTIONS

3.1 Staff Role of the HR department 203.1.1 Policy initiation and formulation 213.1.2 Advice 223.1.3 Service 233.1.4 Control 243.2 Human Resource Department 25


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Internship report on the Punjab Provincial Cooperative bank Ltd.

2

3.2.1 Transfers, promotions, Layoffs 263.2.2 Training and development 273.2.3 Compensation and administration 283.2.4

Health and safety 29

3.2.5 Discipline and discharges 303.2.6 Labor relations 313.2.7 Benefits and services 323.2.8 Organizational development 333.2.9 Human resource planning 343.2.10Equal employment opportunity 353.2.11Personal information system 36SECTION # 4

4.1 Policies of the bank 374.2 Administrative head 394.3 Reserved funds of the bank 404.4 Current deposits 414.5 Sheets showing the financial position of the bank 42-46SECTION # 5

HUMAN RESOURCE DEPARTMENT OF THE BANK 47-51

SECTION # 6

6.1 Weaknesses 52-536.2 Recommendations 54-55Conclusions


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Internship report on

HR Department of The Punjab Provincial

Cooperative Bank Ltd. Lahore

Submitted to:

Department of Business Administration,

Allama Iqbal Open University,

Islamabad.

Submitted by:

Sana Ullah

Roll No. J5135625

Reg.No. 00-PJG-0412


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ACKNOWLEDGEMENT

I have great sense of gratitude for the most Beneficent and Merciful Allah who has

always helped me in all matters of life .I tried but He rewarded me more than the

tried.

I have deep feelings for whole of my family, in general, and for my Father Malik

Khuda Bukhsh, my Mother and my elder brother Smi Ullah, in particular .They

have always soothed me, elevated me and their words and dua has floated me in

the deep seas of troubles. All of my successes are due to my family.

I am thankful to all of my teachers and my class fellows and friends whom

cheerfulness and guidance is an asset for me .I am especially thankful to the bank

staff and particularly.

Mr. Tousif Chief Manager Finance

Mrs. Perveen Deputy GM

Mr.Iftikhar Ali Shah Chief Human Resource Manager


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PREFACE

This project (internship) report is the compulsion put in by the department of

business administration A.I.O.U. Islamabad for the award of master degree in

business administration.

In order to accomplish the task of completion of the degree, I choose the renowned

and reputed organization that is the Punjab provincial cooperative Bank Ltd .The

Human Recourse Department of the bank has emerged a successful one in the

organization and the records of the bank are evident to prove the statement. I went

through 3 months internship training in the bank in order to perceive the true art

and the practical picture of the human resources development and to go through

the process by which the organization is making very good out its limited

resources. The report is according to best of my perception and the knowledge

gained via the books and the courses has been tried to be implemented in the due

courses of the business affairs, it will give a comprehensive and sophisticated and

elaborated way of judgment of human resource department of the organization.

For the convenience of the reader I have tried my level best to make the report

comprehensive and elaborative. The sectioning of the report will pave the way to

read and understand the report easily.

The processes involved in the human resources development and management

have been studied thoroughly and the things I have learned will enhance my

capabilities and polish my managerial skills.

I am sure that the department of business administration will oblige me by giving

its recommendation and consent for the approval of the degree and the purpose


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which I have gone through training and report writing procedure will be served

positively.


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TRANSMITTAL MEMORANDUM

To:

The Department of Business Administration Allama Iqbal Open University

Islamabad.

From:

Sana Ullah

Roll No.j5135625

Reg No.00-pjg-0412

House # 373/11, St # 3 Mohallah Chah Muhammoday Wala Abaid Ullah

Road,

Jhang Sadar

Ph # 0471-612598

041-752977

E-mail. [email protected]

[email protected]

Subject: Internship report on The Punjab Provincial Cooperative Bank Ltd.

Lahore.

It is the compulsion by the Business Administration Department A.I.O.U.

Islamabad in order to complete the masters degree.


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To review the functioning of the human resources department of any organization

is a necessary element of M.B.A. Program.

After the study of organization, after the 3 months practical training at the bank, I

have reached the conclusion mentioned at the end of the report. My main

recommendations to the organization are:

The employees are not satisfied by the promotion criteria and procedure adopted

by the top level management The workers should be satisfied according to their

grades and qualifications.

Human Resources Department should take strong consideration for the retention

and promotion of the employees. More over the customer should be treated in the

more proper and ordered way because during the rush hours there is a bit

negligence towards public dealings.

I thoroughly discussed with top level management of the organization and they

were agreed on the pit falls mentioned by me and to make good and to implement

the recommendations in the due course of business and according to the law .I am

thankful to the staff members and the management team for the successful

completion of the internship and this report. I hope I will fully satisfy the review

panel if they have some extra questions regarding the report. I am equipped with

the necessary knowledge .

I am thankful to the University and the Department for the conduction of the

Human Resources Specialization which enabled me to see through actual things

taking place in any organization.


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EXECUTIVE SUMMARY

TITLE: An internship report on the Punjab provincial bank ltd.

Authorization:

Recommendation:

Department of business administration demands every student of MBA program

to go a process of 3 month internship program and to submit the report based on

the observations and work done during the training process. It is actually the

review of any organization currently running its business, having its competitors

.The study of the functions of the human resources department is the main purpose

of this internship.

It is also meant for finding the weaknesses and shortcomings and then giving the

suggestions for improvement.

Process of Review Methodology:

I went through the all functions and processes of the human resources department

of the organization e.g. job analysis, recruitment, staffing, employers training,

performance appraisal processes, compensation packages, retention of employees

etc.

HAZARDS:

The hazards and the problems faced or found in the organization are in its

promotional procedures .The employees are not satisfied with the working of the

promotional board .Some employees working in different capacities were not

satisfied with the present status of the work assigned to them..


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More over, the employees are not trained according their specialized task

performed by him/her .They are given general training so while performing the

specified task, it is difficult for him to be more accurate and it affects his/her

efficiency.

In the era of specialization, the employee should be trained according to specified

task and the refreshing process should be conducted time to time.

IMPLIMENTATION TIME SLOT:

The suggestions and recommendation can be implemented during the current

fiscal year.


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INTRODUCTION TO THE ORGANIZATION

The bank was registered in 1924 to accomplish the three-tier system of

cooperative credit in the province of Punjab. Primary cooperative societies

constituted the base; the central cooperative banks were at the secondary level and

at the top was the Punjab Provincial cooperative bank limited serving as an apex

bank for providing credit to the cooperatives.

In October 1976, the Federal Government Promulgated the Establishment

of Federal Bank for Cooperative and regulation of cooperative banking

ordinance, whereby the cooperative banking system in the Punjab was converted

from three tiers into two tiers resulting in the dissolution of 46 central/ urban and

industrial cooperative banks and banking unions. According to the provisions of

the ordinance, the undertakings of the Dissolved Cooperative Banks stood

transferred to and vested by in the Punjab provincial cooperative Bank Limited on

the terms and conditions notified by the provincial Government in order to manage

and control the undertakings of the dissolved cooperative Banks.


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BUSINESS VOLUME

The Punjab provincial cooperative bank limited is a scheduled Bank, at

present, having 161 branches at district, Tehsil headquarters and important mandi

towns. Over 38000 cooperative societies are affiliated with the Bank. The paid up

share Capital of the bank amounts to Rs. 112.518 million, out of which the

Provincial Government subscribes shares worth Rs.16.235 million. The authorized

share capital of the Bank consists of unlimited number of shares of Rs. 100 each.

A member cooperative society, which has to borrow loan from the Bank for its

members, has to purchase at least shares equal to 2% of the MCL of the society

fixed with the Bank.


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OBJECTIVES OF THE BANK

The main objects of the Bank are as under:

1. To afford financial assistance to members societies in such manner asmay be necessary.

2. To carry on banking and credit business.3. To inspect, supervise and estimate credit of member societies.4. To help the growth of the cooperative movement.


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FUNCTIONAL DEPARTMENTS OF THE

BANK:

There are six functional departments of the bank. These are :

1)Credit and Recovery

2)Audit and Inspection

3)Board and Properties Affairs

4)Finance

5)Human Resources

6)Law and Advisory

All these departments work under the supervision of the deputy general manager

.Along with the deputy general manager and the heads of all these functional

departments ,there is general manager of the bank .All these department work

under the policies framed by the board of directors from time to time and the

policies are conducted by the H.R.Department.


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OBJECTIVES OF STUDYING THE

ORGNIZATION :

1-To review the human resources department .

2-Analysis of the functionalities of human resources department .

3-To do a comparative analysis of the organization with the other in the same

business and capacity .

4-Finding out the weaknesses, short comings, strengths and beauties of the human

resource department .

5-To put some suggestions & recommendations for the development and polishing

of the human resource department .


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NATURE OF THE BUSINESS :

The Punjab Provincial Cooperative Bank Ltd. is one of the famous and well

known organization in the banking sector. Its services have won good will and thebank is considered credible throughout its area of operation and range of business.

It gives loans to the cooperative societies and to the individuals too. More over it

also offers services in the normal banking of daily life.


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PRODUCT LINES OF THE BANK:

The oldest scheduled bank of Pakistan gives the following services to the

customer.

1) A leading bank for providing the agriculture loans to the low scaled formersby its Punjab wide 161 branches.

2) The availabilities of productive loans to the formers of co-operativesocieties for seeds, pesticides and fertilizers on easy conditions.

3) Mid term loan for the purchase of tractors in a co-operative societies.4) Agriculture machine and tube well loans.5) The loan up to 5 Lac for co-operative societies for the increment in the

industrial production.

6) Females may also benefit themselves by same facilities.7) Availabilities of the loan for the development of Information Technology.8) The launching of gold loan for general public and agriculture purposes at

Tehsil level.


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COMPETITORS:

1) I.D.B.P.

2) A.D.B.P.

3) Muslim Commercial Bank Ltd.

4) Habib Bank Ltd.

5) Foreign banks like City Bank , Standard Charted Bank Ltd. etc.

Chartered Accountants:

Ilyas Saeed

Midsnell Group International

Legal Advisors:

Khan Ilyas

Mian Safdar Mehmood

Rab Nawaz Malik

Bank location:

Cooperative Bank Square,

Shahrah-e-Quaid-e-Azam(The Mall)

Lahore.


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OPERATIONAL ZONES

For the convenience of the operations of the bank and providing more facilities

to the customers at or near their home town the bank is working with followingzones along with the head office at Lahore.

Multan Zone

Sargodha Zone

Faisal Abad Zone

Rawal Pindi Zone

Gujranwala Zone

Bahawalpur Zone

D.G.khan Zone


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BOARD OF DIRECTORS:

Following members constitute the board of directors for general management

of the bank.

Registrar, Cooperatives, Punjab Ex-Officio President

Chief Auditor, Cooperatives, Punjab Ex-Officio President

34 duly elected members, one from each Distt. Member

Three nominated members by the Registrar Member

The board of directors has 39 members. A nominee of the Federal Bank for

cooperatives attends the meetings of the board of directors as observer. The

board of directors elect a vice president from amongst its members. The board

of directors may delegate all or any of the powers for proper and efficient

conduct of the business of the bank to the president, vice president, general

manager, any other responsible officer of the bank or a sub committee

appointed by the board of directors.


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LIST OF PRODUCTS:

1) Shares capital.

2) Reserve deposits.

3) Securities.

4) External loans .

5) Investment.

6) Loans .

7) Reception of utility bills.

8) Reception of the application for the Pilgrimage (Hajj).

Human Resource Department is not directly concerns with the customer

satisfaction but its policies are the integral part of the bank achievement plans and

its policies ensure the right person to be hired, for the right and specified job,

trained, evaluated, giving incentives and hence by appointing right persons in the

different functional departments of the bank. So Human Resource Department

helps in the proper functioning of the products and if there are complaints against

the products of the bank or the customers are not satisfied with the bank products,

it takes measures in order to determine the job specifications, hiring of the

appropriate person or conducting the refreshing courses etc. and hence leading

toward goals achievement.


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STAFF ROLE OF THE HUMAN RESOURCE

DEPARTMENT OF THE BANK

The Human Resource department of the bank operates in an auxiliary,

advisory, or facilitative relationship to other departments in the organization. Any

staff unit, whether it be personnel or otherwise, exists to help the line effectively.

It has been created in the first place to take advantage of specialized talent and

knowledge.

The H.R department of the bank generally performs the following roles:

1. Initiation and formulation2. Advice3. Service4. Control


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POLICY INITIATION AND FORMULATION

The executive in charge of the H.R.Department is the individual most actively

involved in policy revision to cover recurring problem or to prevent anticipated

problems. Ordinarily these are proposed to the president of the company, and it is

up on the latters authority that the policy is actually issued. When proposing a

new or revised policy the personnel director must analyze problem that have

occurred in the past, survey other companies to determine how they handle similar

situations, discuss the matter with colleagues and subordinates and give due

consideration to the prevailing philosophy in the organization.


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ADVICE

A major portion of the activities of those engaged in staff personnel work is in the

nature of counsel and advice to line manager. Countless examples can be given. A

shop foreman may be confronted with a grievance over distribution of overtime.

Another foreman may have the problem employee who he feels should be

disciplined or even suspended. At the time of the annual review of all salaried

personnel for possible pay increases, the operating manager plays a key role in

advising operating manager on the administration of the program. An apparent

concerted slow down may occur in the assembly department. It may have been

instituted by the union in retaliation for the cutting of piece rates the week before.

How should production supervision handle this situation.

The H.R.Managers and their staffs are expected to be fully familiar with

H.R. policy, the labour agreement, past experience and the needs and welfare of

both the company and the employees in order to develop a sound solution.

Successful personnel specialist must be people centered. They must be feeling

sensitive, wants, and motives of other people. At the same time they must

continually be cognizant of their obligation to preserve the structure and

functioning of the organization. In fact, this really is the essence of H.R.

management. Management must seek to so direct and coordinate the efforts of the

people that the goals of the organization are achieved while at the same time

providing need satisfactions for the members of that organization.


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SERVICE

The service responsibilities of the H.R. department are apparent when one

examines such things are as the employment, training, and benefits functions. The

tasks of recruiting, interviewing and testing job applicants are performed in the

H.R.Deptt.. Training programs are planned, Organized and often staffed through

the H.R.Deptt. H.R.Deptt must see that adequate instructional materials and

facilities are available. Once pension and insurance programs have been setup, all

claims must be through the H.R.Deptt. The maintenance of adequate employee

records is a service function that permeates all functional specialties within the

personnel field.


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Control

The H.R.Deptt carries out important control functions. It monitors the

performance of line department and other staff departments to insure that they

conform to established personnel policy, procedures, and practices. The control

function of the personnel department is quite comparable to the activities of a

quality control group that measures product variables to insure conformance to

engineering specifications or to the activities of the auditing staff that inspects

accounting records to ascertain conformance with prescribed standards.


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HUMAN RESOURCEDEPARTMENT

FUNCTIONS

H.R. Management activities are carried on both by the staff H.R.Deptt and

by operating management in the course of directing the activities of the work

force. Variation from the pattern described may occur in particular companies

because of special circumstances.

This function includes recruitment, selection, and induction into the

organization. The initial decision to add someone to the payroll is made by line

management. It is also its responsibility to determine the content of the job to be

performed and the employee qualifications necessary to perform the job

satisfactorily. Very commonly, statements of job content and employee

qualification have been previously worked out jointly between line management

and the H.R.Deptt. These are recorded in the form of job descriptions and job

specification. The H.R.Deptt must develop and maintain adequate sources of

labour. It must set up and operate the employee selection system, which mayinclude interviews, selection tests, a medical examination, and reference checks.

Quite commonly the role of the H.R.Deptt is one of screening with the final

decision to hire or reject being made by the supervisor who requested the new

employee. However, in the case of large-scale hiring program of unskilled or

skilled workers, the H.R.Deptt is commonly granted full and final authority to

make the hiring decision.

The new employees supervisor bears Important responsibilities for

introducing his/her to the new work environment. This is often called orientation

or indoctrination.


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TRANSFER, PROMOTION, LAYOFF

For these tasks the H.R.Deptt serves primarily in a coordinative capacity.

When employees are moved from one department to another either because of the

needs of the business or because of individual requests, the personnel records may

be studied to ascertain that they posses the requisite skills. Layoffs typically are

processed by the H.R.Deptt to insure that the proper order of preference is

followed. This can become complicated of combinations of jobs, departmental,

and plant wide seniority rights must be observed. When a vacancy occurs in a

position, it may be filled by promotion from within or by direct hiring from

outside the company. This decision is often made jointly between the

H.R.Manager and the executive in change of the department where the vacancy

has occurred. Many companies may establish policies to cover matters of this type.

The actual final decision as to which candidate is chosen for the promotion is

largely made by the executive in whose unit the vacancy has occurred.


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TRAINING AND DEVELOPMENT

On-the-job training and coaching are performed by the line supervisor or by

a specially designated employee who acts in the role of an instructor. It is the

responsibility of the personnel industrial relations group to determine training

needs in cooperation with the line management. Once the needs are established,

the personnel training specialists must design a program to accomplish the desired

results. If the program takes the form of in service class room courses, it usually is

administrated by H.R.Department. Coaching, performance appraisal, and post

appraisal counseling, job rotation, understudies, and special broadening

assignments are largely executed by operating managers but coordinated by a

central H.R.Deptt.

For those enterprise that are engaging in an organization development

activity the personal manager or the personnel staff.

For those enterprise that are engaging in an organization development

activity the H.R.Manager serves in a consulting role to an operating department.He plans programs in cooperation with managers of operating departments,

diagnoses people problems, conducts various workshop type programs, and

provides feedback to the managers about ongoing problems.


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COMPENSATION ADMINISTRATION

The work of designing and installing a job evaluation program is handled, for the

part, by the H.R. department with some consultation with line managers . The

decision to adopt a particular pay structure with pay grades and fixed minimums

and maximums for the grades is a top management responsibility.

The day-to-day work of analyzing jobs, evaluating their worth according to

a formal job evaluation plan, and maintaining suitable records is are

H.R.deptt.functions Periodic wage are conducted by the H.R.deptt, but any firm

decision to rise or change the entire schedule is particularly always reserved for

the chief executive officer of the organization.


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HEALTH AND SAFETY

A significant part on occupational health programs is the identification and control

of agents within the working environment that can cause occupational diseases.

some agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat,

radiation, biological substances and stress. Industrial hygienists are employed to

identify and control such hazards to health.

Other important elements of an employee health programs are pre-employment

medical examinations, periodic examinations for those working on jobs having

exposure to occupational disease-causing agents, rendering of first aid, treatment

of minor ailments such as colds and headache, and providing health education

information. Small companies typically hire physicians, nurses and industrial

hygienists only on the consulting and part time basis. Large firms tend to be

staffed with full time personnels in these areas.

The safety program is directed toward the prevention of work injuries. The

main element are engineering , education and enforcement. The safety directorwho I usually a member of HR department works closely with the plant

engineering unit to have machines and equipment properly guarded. New

production processes and machines must be o designed and constructed so that

possibility of human injury is remote.


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DISCIPLINE AND DISCHARGE

Discipline has two principal meanings. In the first sense it means training

that molds or corrects. This means the achieving and maintaining of orderly

employee behavior because the people understand and believe in the established

codes of conduct. The second meaning of the term discipline refers to punishment

of wrongdoers.

The H.R. department commonly assumes the responsibility for formulating

the list of necessary rules together with the range of penalties for each together

with the range of penalties for each offense. Frequently this list of rules and

penalties is discussed and cleared with high-level line management before it is

issued and communicated throughout the organization.

Most commonly, actual approval by the H.R.department has to be obtained

before and employee may be discharged. The reason is that discharge is a very

serve penalty and should be used only when a very clear case can be shown. Inaddition, it is especially vital to achieve companywide uniformity in the handling

of such cases.


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LABOR RELATIONS

When a union has been certified by the national labor relations Board, as

the result of an election, as the sole and exclusive bargaining agency for the

employees, then management must bargain with it in regard to wages, rate of pay,

hours of work, and other conditions of employment. The principal tasks involved

in handling labor relations are contract negotiation, contract interpretation and

administration, and grievance handling.

The H.R.department plays very significant role in labor-management

relations. The director of industrial relation usually serves as a key member of the

bargaining team often acting a chief management spokesman. In operating on a

day-to-day basis under the terms of the labor agreement, line supervision often

finds frequently occasion to consult the H.R.department regarding such matters

like allocation of over time, handling of transfers and layoffs, and the application

of contract work rules.


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BENEFITS AND SERVICES

Included under this category are pensions, group life insurance, hospital

and medical insurance, sickness leave pay plans, supplemental unemployment

compensation, loan funds, credit unions, social programs, recreational programs

and college tuition refunds plans.

The actual decision to establish or to expand these programs is

nearly always made by top line management upon the advice and consultation of

the H.R.department. The actual design of pension and insurance programs requires

a great deal of technical knowledge. These programs are generally worked out in

conjunction with insurance companies or insurance consultants. After these plans

are installed, the day-to-day processing of claims is handled by the

H.R.department


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ORGANIZATION DEVELOPMENT

Organization development is a general approach for improving the

effectiveness of an organization that utilizes a variety of applied behavioral

science methodologies. Among the objective of the OD are to increase the level of

trust and supportiveness among people in the organization, enhance interpersonal,

skills, make communication more open and direct, directly confront problems and

to tap the knowledge of all who can contribute to problem solutions wherever

they may be in the organization.

Consultants are often involved in OD work they work jointly with

management to collect data, diagnose problems and work of solutions. Typical

kinds of OD activities are interventions are confrontation meetings, team

buildings, survey field, back conflict resolution, laboratory training and

managerial grid exercises and projects.


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HUMAN RESOURCE PLANNING

Another new function that has emerged in recent years in human

resource planning (also) called manpower planning). Sometimes a specific personor office has this as its primary responsibility; more commonly the responsibilities

are shared by several people within the corporate personnel unit. Human resource

planning is the process by which is a firm insures that it has the right number of

qualified persons available at the proper times, programming jobs that are useful

to the organization, and which provide satisfaction for the individuals involved.

The principal elements involved in human resources planning are as follows:

(1) goals and plans of organization; (2) current human resource situation

including skills inventory; (3) human resource forecast including comparison of

projected future demand for employees with projected supply; (4) designing programs

to implement the plans; and (5) audit and adjustment.


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EQUAL EMPLOYMENT OPPORTUNITY

Very commonly the chief personnel executive in a company bears the major

responsibility for insuring that the organization complies with the various equal

employment opportunity laws and regulations. She or he often delegates the day-to-day

detailed administration to someone within the H.R.department who either specializes in

this field of work or who performs these duties along with others department such as the

employment function. Usually the chief executive officer (CEO) of a company, whether

she or he be called the chairman of the board or the president, plays a key role in the

formulation and implementation of equal employment policy.


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PERSONNEL INFORMATION SYSTEM

Today, many organizations have staffs of people trained in mathematical analysis,

computers, and management information systems. Some companies have applied

these capabilities to personnel work. Among the applications have been human

resources planning, skills inventories, employee benefits analysis, and productivity

studies.


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POLICIES OF THE BANK

The bank maintenance the account on cash basis under the historical cost

convention and are in conformity with the provisions of C0-opertive societies Act,

1925.

STAFF RETIREMENT BENEFITS

The bank operates the following schemes for its employees:

a) For employees who did not opt for the new scheme the bank operates the

following:

i) Approved contributory provident fun and

ii) An approved gratuity scheme.

NEW SCHEME

For new employees and for those who opted for the new scheme introduced 1986

for both clerical staff and for officers the bank operates the following:

i) An approved funded pension scheme for which monthly contributionsare made: and

ii) An approved non-contributory provident fund introduced in lieu of thecontributory provident fund.

TAXATION

Provision for taxation is based on taxable after taking in to account

applicable exemptions and rebates, if any, as laid down in the income tax

Ordinance. 1979.


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INVESTMENTS

Investments in marketable securities are stated at market value. Premium

on Pakistan investment bonds are amortized over a period of ten years.

ADVANCES

Loans and advances are stated at their principal amounts, net of provisions

for loan losses. The specific provisions for possible loan losses have been made as

considered necessary after taking in to consideration the realizable value of assets

held by the bank as security.

TANGIBLE FIXED ASSETS

Fixed assets, other than land which is not depreciated, are stated at cost less

accumulated depreciation. Depreciation is computed over the useful economic

lives of the related assets and charged to income applying diminishing balance

method except motor vehicles on which the depreciation is charged on straight

asset where the asset has been used for more than six months in the accounting

year. No depreciation is provided in the year of disposal.

Maintenance and normal repairs are charged to income as and when incurred.

Major repairs and improvements are capitalized. Gains or losses, if any, on

disposal of fixed assets are included in current income.

REVENUE RECOGNITION

Revenue from advances and investment are recognized on cash basis.


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ADMINISTRATIVE HEAD

The administrative head of the Bank is general manager who controls the affairs of

the Bank on the basis of policy framed by the board or directors from the time to

time. The following executives at head office assist him.

Sr. No Name of Executives

1 Deputy General Manager

2 Chief Manager Human Resources Department

3 Chief Manager, Audit & Inspection

4 Chief Manager, Credit & recovery

5 Chief Manager, Board & Properties affairs

6 Chief Manager, Finance

7 Chief Manager, Legal and Advisory Services


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RESERVE FUNDS OF THE BANK

The bank maintaining reserve funds, as on 30-04-2001, as under:

Sr. No Type of Fund Amount (Rs) million

1 Reserve Fund 298.248

2 Bad & Doubtful Fund 410.475

3 Building Fund 103.862

4 Other Funds 79.401

Total 891.986


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CURRENT DEPOSITS

The bank held deposits to the tune of Rs 1,339.009 million as on 30.04.2001 the

bank up of which is given here under.

Sr no Nature of deposit Amount (Million) (Rs)

1 Current Deposits 83.946

2 Saving Deposits (PLS) 1042.095

3 Fixed Deposits 131.280

4 Other Deposits 81.778

Total 1,339.099

The cash balances including bank balance of the bank as on 30.04.2001 stood at

Rs 889.996 million.

A sum of Rs. 369.993 million has been invested by the Bank in Government

securities, Government Bank and shares of other institution according to the policy

laid down by the State Bank of Pakistan.


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HUMAN RESOURCE DEPARTMENT OF THE

BANK:

The bank has won repute in the field of agriculture ,industrial loan and for the

daily life banking .It has been achieved only due to the proper and exact

functionality of the Human Resource Department .The Head of the Human

Resources Department is the general manager and his team comprises of chief

managers of different departments .

The Human Resource Department may advice the administration and the board

of directors on special issues of the bank and then it offers services in order to

accomplish the task. The human resources are the ultimate deciders provided

by the Human Resource Department. It not only gives advice , offers services

but also control the policies of the administration.

RECRUITMENT:

The department first determine the need of employees to be hired .The postagainst each vacancy is advertised and then the applications are invited from

the applicants .If there is a post of manager cadre ,the general manager

personally is the interviewer of the interviewees along with his team .

TRAINING:

Then the qualified candidates undergo a training period under the banner of

Human Resource Department .There are co-operative training college at

Faisalabad and Bahawalpur Districts .Then the specified persons are appointed

against each specified post so the best results are expected and hence the

performance and good will of the bank is increased.


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TRANSFER:

Human Resource Department of the bank also deals with the transfer of the

employees because the Human Resource Department knows the demands of

the job and the right person is employed over the right place by transferring

him to that post .

Health and safety matters are also handled by the Human Resource Department

in the bank. As there are no apparent dangers to the employees and customers

hence it is the responsibility of the Human Resource Department to see through

the matter.

EVALUATION:

The employees are then properly evaluated by different evaluation criteria and

procedures in order to motivate them and to enhance the performance .The job

appraisal system comprises of different questionnaire depending upon which

the whole system is forwarded .

UNION:

The union plays an essential part for the labor management relation .It bargains

with the management in the light of the demands of the employees .It is the

responsibility of the Human Resource Department which holds the formal talks

and the negotiations between the parties.

Human Resources Department is also responsible for the dealing with other

organizations running the same business.

Discipline and discharge is the necessity of each organization and it is

maintained by the Human Resource Department of the bank. If an employee is

creating problems for the administration for nothing, he may be warned and


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depending upon the severity of the matter and allegation he may be suspended

and even terminated.

Work Place Training:

The work place training is the key factor of the policies of the Human

Resources Department .As the bank is public dealing entity so the work place

training is the integral factor for the good will and the status of the policies and

services of the bank.

REFRESHING COURSES:

The refreshing courses enhance the potential capabilities of the staff and the

performance as well. The refreshing courses are conducted by different

financial institutions and are attended by the staff members on the

recommendations and behalf of the H.R.Department Refreshing courses are for

the managerial and clerical staff. So they are equally and firmly evaluated and

enhancement of their capabilities is achieved.

PAY PACKAGES:

The packages are also determined by the Human Resources Department. These

are determined on the basis of performance, ACR, qualification and seniority

.It has comparatively low pay packages yet good ones.

The managerial posts are filled by the three methods by the Human Resource

Department.

1) Direct

2) Graduate

3) Non-graduate


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The promotions are on the seniority cum fitness basis .So the qualified and the

efficient workers are supposed to come up to the top.

Human Resource Department also deals with the retention and firing of the

employees .In case of deceased employee, one of his child gets the job in the

bank .According to qualification and skills it ensures the employee benefits

.More over the Human Resource Department also cares for the old age benefits

of the employees .It is obvious that the Human resources Department is of key

importance and is playing a complementary role in the development and

promotion of the bank.

INFORMATION TECHNOLOGY:

Theinformation system is the core of the operationing of the each and every

organization. If helps in the policy formulation and the running of the business

affairs properly by providing the 1st

hand and accurate information. The whole

Human Resource Department functionality depends upon the information

system. Better the information system, better the Human Resource Department.

The Punjab cooperative bank has good information system and is serving the

Human Resource Department betterly and efficiently and effectively.


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WEAKNESSES:

1) The Human Resource Department is not up to the mark for the proper

appraisal system of the staff.

2)The policies of the bank are determined by the board of directors in

accordance with the H.R.Department. However there are certain policies in

which the Human Resource Department is dependent on the State Bank of the

Pakistan e.g. the mark up rate that is 14%.It limits its powers and dependency

is increased and risks are increased.

3) Employees have developed a psychology that promotion criteria &

procedures of the Human Resource Department of the bank are not justified.

4) The mark up rate in many programs is much higher hence creating the

problems for customer.

5) Human Resource Department is lacking employee training centers. There

are only two training centers at Faisalabad and Bahawalpur which are

insufficient for the training and refreshing courses of the employees.

6) If an employee wants to study during the job, he has to take approval from

the Human Resource Department of the bank, there are certain bottle necks for

taking such approval.

7) Proper evaluation of the employees is not in the normal functioning of the

bank.

8) Refreshing courses are on & off, not timely and frequently.


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9) The proper information system is not in progress for the Human Resource

Department. The automation process by the Human Resource Department is

slow hence delaying the functioning of the bank.

10) Human Resource department lacks staff and it is very difficult for the

Human Resource Manager to do the right things for their organization and it

takes much time for normal working of the organization.


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RECOMMENDATIONS

1) The Human Resources should take less time in recruitment and training the

staff.

2) Refreshing courses should be adequate and more frequent during the year.

3) The promotional criteria by the Human Resource Department should be

defined and be as per rules.

4) More training centers should be established. If there is lack of resources, it is

difficult, the training centers of the other organizations in the same capacity

can be utilized by determining the terms and conditions.

5) During the training by Human Resource Department the ethical values

should be more emphasized.

6) The proper and competitive evaluation of the methods and procedures

adopted by other competitors will enhance the performance of Human

Resource Department.

7) This is the era of Information Technology. The functions and procedures of

the bank should be converted from manual to the automatic. It will enhance the

performance of the Human Resource Department and ultimately of the bank.

Human Resource Department should allocate resources for this purpose.

8) Human Resource Department may advice and train employees for one

window operation in order to reduce the time and conserve the resources.

9) Agents for the promotion of the bank policies and to facilitate the customers

by the Human Resource Department may be appointed with proper check and

balance system.


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10) Pay packages may be revised in the light of profit earned by the

organization.


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CONCLUSIONS:

No doubt bank is financial institute but the working substances are the human

being .It goes with out saying that Human resources are the most important in

the organization and so does the Human Resource Department .It integrate all

the activities and functions of the bank like job analysis, recruitment, staffing,

training, designing compensation package, employees appraisal system.

Human Resource Department plays the key role in the hiring, retention,

motivation and promotion of the employees .Actually it assign the specified

duties to the specified persons in this age of specialization.

Human Resource manager should be well versed and confident in his field. He

should be humane, well natured and have go face reading capabilities .All this

ensures his success .He should be of the notion victory is not the everything

but the way of fighting is.

Documents

Internship Report by Sana-u-llah