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HISTORY OF MCB

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Before separation of Indo Pak, the need for moreMuslim banks was felt. And Muslims having strong

financial capacity were thinking to invest in thissector as well. This was the idea which providedthe way for setting up MUSLIM COMMERCIAL

BANK Ltd known as MCB. This was the thirdMuslim bank in the subcontinent.

This bank was incorporated under companies act1913 on 9 th July, 1947 (just before partition) atCalcutta.

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MCB TODAY

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MCB is one of the leading banks of Pakistan witha deposit base of about Rs. 280 billion

Total assets of around Rs.300 billion.

The Bank has a customer base of approximately

4 million .

Nationwide distribution network of over 1,000branches

Over 450 ATMs in the market.

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P.O (HR)

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HRM PROCESS IN MCB

Human resource planning and forecastingEmployee Recruitment and Selection

Training And Development Performance Management Employee Compensation And Benefits

Organizational Career Management

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Human resource planning andforecasting

Human resource planning and forecasting includes the specific andinterrelated activities that together constitutes HRP system :

HRP Process: These are steps of HRP in Muslim Commercial Bank.

Determining the Objectives.

Defining skills required to meet the objectives.

Determine additional human resource requirements.

Develop actions to meet the anticipated HR needs.

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Forecasting HR Requirements

The purpose of forecasting of human resourcesis to estimate labor requirements at somefuture times period. Such forecasts are of twotypes.

1.The external and internal supply of labor2.The aggregate external and internal supply of

labor

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Methods To Forecast HR Needs

Zero-base Forecasting:This method uses the MCBs current level ofemployment as the starting point for determiningfuture staff needs in MCB .

Bottom-up Approach:It is the forecast method in which each successive

level of the MCB, starting with the lowest andforecasts its employee requirements in order toultimately provide an aggregate forecast of employeeneeds.

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Use of mathematical models:Mathematical models are also used for forecastingHR requirements. It defines relationship betweendemand and the number of employees supplied .

Simulation:It is a technique for experimenting with a real worldsituation through a mathematical model representingthat situation

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Employee Selection and Recruitment

People are at the heart of our success

Recruitment is the discovering of potentialapplicants for actual and anticipatedorganizational vacancies

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Human Resource Department has combined many selectiontechniques i.e . job application form , employment test, interview,and physical examination.

The step to step Recruitment process followed by organization is:

Planning

Job Analysis Sourcing Screening Selection Interviewing Hiring Reporting

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Analysis of positions and requirement

After planning it is analyzed that whichposition is going to be filled and thererequirement is analyze by job analysis:

Identify Candidates :MCB identifies its candidates by developingthe criteria of job description and job

specification and acting upon these criteria job vacancy ads are spread through differentMedias like newspapers and internet

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Sources Of Candidates

I . Transfers :The employees are transferred from one department to

another according to their efficiency and experience.

II . Promotions :

The employees are promoted from one department toanother with more benefits and greater responsibilitybased on efficiency and experience.

III. Others are

Upgrading And Demotionof present employees according to their performance.

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IV. Retired And Retrenched Employees

may also be recruited once again incase of shortage ofqualified personnel or increase in load of work. Suchpeople save time and costs of the organizations asthe people are already aware of the organizationalculture and the policies and

procedures.V. The dependents and relatives of

Decreased Employees And Disabled Employeesare also done by many companies so that themembers of the family do not become dependent onthe mercy of others

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External Sources

Press Advertisement Educational Institutes

Placement Agencies Employment Exchanges Unsolicited Applicants Employee Referrals / Recommendations

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Employment Selection Process:

Recruitment and selection in MCB has manyprocesses and steps that must be followed.

Decide what positions to fill, through

personal planningandforecasting

Build a pool of candidates for these jobs, by Recruiting internal or external candidates.

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Have candidates complete application form and perhaps undergo initialscreening Interviews.

Use selection tools like tests, backgroundinvestigations, and physical exams to identifyviable candidates.

Decide who to make an offer to, by having thesupervisor and perhaps others interview thecandidates.

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Screening And Short Listing

Many candidates apply for job in response tovacancy ads by submitting their CVs. Selectionboard goes through those CVs and selectsthose candidates which initially fulfill criteriaof selection board. After prescreeningselection board short lists the candidates who

are considered most suitable for job at initiallevel on the basis of their resume

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Test / Interview

In this process short listed candidates are called for testand interview according to nature of their applied jobs.

Selection Interview:Selection interview is conducted for short listed

candidates. A selection

interview is the procedure designed to predict future jobperformance on the basis of applicants oral responsesto oral inquiries.

Formats Used In Selection Interview: Structured/Directed Unstructured/Non directed

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Modes Of Interview : Penal interview:An interview in which a group of interviewers questions the

applicant.Structured sequential interview: An interview in which the applicant is interviewed sequentially by

several persons ; each rates the applicant on a standard form.Types Of Questions:

Situational:A series of job-related questions that focus on how the candidate

would behave in a given situation. Job related:

A series of job-related questions that focus on relevant past job-related behaviors .These types of questions are asked from thosecandidates who have past experience of job.

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Stress:

An interview in which the interviewer seeks to make theapplicant uncomfortable with occasionally rudequestions that supposedly to spot sensitive applicantsand those with low or high stress tolerance. Thesesorts of questions are asked according to high

designation of candidate.

Puzzle questions: Recruiters for technical and finance job use questions to

pose problems requiring unique solutions to see howcandidates think under pressure

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Testing

Organizational performance always depends in part onsubordinates having the right skills and attributes. Keep inview this point MCB tries its level best to hire highly skilledand suitable employee for each job. For judging these skillsMCB conducted some tests of employees on the basis of

Reliability Test validity The consistency of scores obtained by the same person

when retested with the identical or equivalent tests iscalled reliability and the accuracy with which a test andinterview what it purports to measure or fulfills thefunction it was designed to fill is referred as validity.

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Types Of Test :Generally two types of tests are taken MCB:Tests of Cognitive ability ( mental ability , eye

hand co-ordination )Physical test

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Cognitive Test Abilities Consists Of

1.Intelligence Tests:Tests of general intellectual abilities that measure a

range of abilities, including memory , vocabulary,

verbal fluency, and numerical ability areintelligence tests.2.Aptitude tests:

Tests that measure specific mental abilities, such asinductive and deductive reasoning , verbalcomprehension, memory, and numerical abilityare aptitude tests

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Stress:An interview in which the interviewer seeks to make theapplicant uncomfortable with occasionally rudequestions that supposedly to spot sensitive applicantsand those with low or high stress tolerance. Thesesorts of questions are asked according to high

designation of candidate. Puzzle questions:

Recruiters for technical and finance job use questionsto pose problems requiring unique solutions to seehow candidates think under pressure

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Tests Of Physical Abilities

Tests that measure static strength, dynamicstrength, body coordination, and stamina arephysical. Job related to guards and deliverersgo through this sort of test .

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MCB recruits candidates in threecadres

1.Probationary Officers ( entry pointfor fresh graduates )

2.Management Trainees

3.Contractual Appointments

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Final Selection

After going through all the processes the bestcandidates according to MCBs selection boardsare selected. The candidates, who are finallyselected, are offered appointments asprobationary officers, after signing the followingbonds

1. Banks Secrecy Bond2.Banks Security Bond3.Service Agreement Bond

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Orientation

Just after final selection and before starting of trainingprocess orientation is conducted for selectedemployees in orientation new employees are providedwith basic background information about the MCB thebasic contents of successful orientation are:

Information on employee benefits Personnel policies The daily routine Company organization and operations Safety measures and regulation

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Training And Development

Training is the organized procedure by which peoplelearn knowledge and/or skills for a definitepurpose.

MCB has a mix of training methodologies for its employees.We can broadly categorize these methods into five groups: Needs analysis: Identify job performance skills needed, assess prospective

trainees skills, and develop objectives. Instructional design: Produce the training program content, including workbooks ,

exercises, and activities.

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Validation: Presenting the training to a smallrepresentative audience.

Implement the program: Actually training to the targeted employeegroup.

Evaluation: Assesses the programs successes or failures.

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Training Needs Assessment

Needs assessment-Organizational support-Organizational analysis-Task and KS Analysis -Person analysis

Instructional Training Validity Effective training practices involve the use of aninstructional systems design process. Theinstructional systems design process begins byconducting needs assessment.

Needs Assessment refer to the process used todetermine if training is necessary.

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Because needs assessment is the first step inthe instructional design process:

If it is poorly conducted, training will not

achieve the outcomes or financial benefits thecompany expect

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Needs assessment involves

Organizational Analysi s involves determining: The appropriateness of training, given the

business strategy Resources available for training Support by managers and peers for training. Task Analysis involves: Identifying the important tasks and knowledge,

skill, and behaviors that need to be emphasizedin training for employees to complete their tasks.

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Person Analysis involves: Determining whether performance

deficiencies result from a lack of knowledge,

skill, or ability (a training issue) or froma motivational or work design problem

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Training methods used by MCB

On-the-job Training Off-the-job Training Apprenticeship Training Informal learning

Effective lectures

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Programs for training anddevelopment

The Bank has the latest state-of-the-art trainingfacilities at its Training &Development Center(TDC) and a dedicated training team to look aftermost of the training needs of its employees. MCBuses following programs for training anddevelopment

Management Trainee Management associate Cash officers Internships

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EMPLOYEE DEVELOPMENT

Employee development is a joint, on-going effort onthe part of an employee and the organization for whichhe or she works to upgrade the employee'sknowledge, skills, and abilities. Successful employeedevelopment requires a balance between anindividual's career needs and goals and theorganization's need to get work done . Employeedevelopment programs make positive contributions toorganizational performance. A more highly-skilled

workforce can accomplish more and a supervisor'sgroup can accomplish more as employees gain inexperience and knowledge

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Performance Management

It is the description of job-relevant strengthsand weaknesses of an individual or a group. Setting and clearly communicatingperformance standards and expectations ,observing and providing feedback , andconducting appraisals enable you to achieve

the best results through managing employeeperformance.

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Setting Performance Standards In MCB, performance expectations are the basis for

appraising employee performance. Written performancestandards let supervisor compares theemployee's performance with mutually understoodexpectations and minimize ambiguity in providing feedback. Having performance standards is not a new concept;standards exist whether or not they are discussed or putin writing. When observed an employee's performance,supervisor usually makes a judgment about whether thatperformance is acceptable . How do you decide what's

acceptable and what's unacceptable performance? Theanswer to this question is the first step in establishingwritten standards

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Performance Appraisal

MCB Pakistans performance appraisal system is based on acombination of 'MBO and 'Enabling Traits' approaches ,under which:60% weight age is given to performance goalsdiscussed and laid out in the beginning of the year.Another 40% weight age is assigned to enabling personalityfactors, which are clarified to all employees by theirsupervising officers at the start of each year . The systemand process flow of the appraisal process is modified,improved and upgraded from time to time in line with theBank's requirements, as well as with industry practices. HRDepartment notifies all units of the Bank of the PA systemand procedure currently in use. Units are also notifieddeadlines for goal setting, form filling, monitoring and finalappraisals.

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Employee Compensation And Benefits

An organization reward system is a program orscheme which provides incentives for those individualsor groups who perform well in the organization. Thisreward system in actual motivates employees toperform well by attracting with well designed incentivepackages. It includes anything an employee values anddesires that an employer is able and willing to offer inexchange for employee contribution . Compensation ispayment to an employee in return for their

contribution to the organization , that is, for doing their job. Compensation includes topics in regard to wageand/or salary programs and structures.

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Employee Compensation And Benefits

Types Of Compensation And Benefits: For employers, compensation costs must be at a level

that both ensures organizational competitiveness andprovides sufficient rewards to employees fortheir knowledge, skills, abilities, and performanceaccomplishments. Balancing these face that the

employer can attract, retain, motivate (ARM) andreward the performance of employees requiresconsidering several types of compensation.

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Financial Benefits

Life Insurance Disability Insurance Medical Allowances Pension Plans Severance Pay Conveyance Allowance Bonuses Profit Sharing

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Non Financial Benefits


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Non-Financial Benefits

Sound Working Environment Training And Development Job Security Pick And Drop Facility Sick Leave/ Vacations

Flexible Work Arrangement Flex Hours

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Compensation And Benefits In MCB

MCB awards their employees a lucrative (attractive)compensation in return of their tough mental labor.Apart from basic salaries they are offered many other

benefits like: Utility Allowance Medical Allowance Overtime Allowance

Education Allowance House Rent Allowance Bonuses

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Organizational Career Management

"A goal that you desire to achieve in a selected field or occupation with awell-thought out plan, to get you there is called Career Planning."

In employment context, career planning is continuous process ofevaluating your current lifestyle, likes/dislikes, passions, skills, personality,dream job, and current job and career path and making corrections andimprovements to better prepare for future steps in your career, as needed,or to make a career change . Career planning is important because theconsequences of career success or failure are linked closely to eachindividuals self concept, identity and satisfaction with career and life. Inthe new concept of career management, company and the employee arepartners in career management.

According to a view, A job is just an opportunity to learn new skills thatyou can then peddle elsewhere in the market place .

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Employee job changes

It is the responsibility of top management to develop andimplement a cost-effective career planning program mustfit the nature of the business, its competitive employmentpractices and the current (or desired)organizational structure . This process is complex becauseorganizational career management combines areas thatpreviously have been regarded as individual issues :

Performance appraisal Development Transfer Promotion

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Termination:

Usually, this process is perceived negatively by employees. Intermination, an employer uses his right to terminate the contract ofan employment. There can be many reasons for an employer toterminate the contract of employment but some of the commonreasons are:

The end of the agreement for which the employee was in employment.Employee sickness and incapability to do work. Removal from offices.Non - performance.Indiscipline Misconduct Insubordination

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Resignation

This is the most common way of separation. Employee leaves his job and employment with his employer to pursue betteropportunities; a better position at a better compensation packagein a branded company (or better known company) in a same cityand country or in a different city or different country . So, anemployee resigns for:

Better compensation and benefits Higher position / level Challenging role To move from an unknown or lowly branded company to a highly

branded and reputed companyFor foreign or international assignment

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Retirements

Employees at all levels in MCB get retirementafter either the completion of 30years in serviceor reaching an age of 60 years. The bank operatesthe following staff retirement benefit schemes forits employees :For employees who did not opt for the newscheme, the bank operates the following:

I . Approved contributory provident fundIi . An approved gratuity scheme

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LABOUR MANAGEMENT RELATION

1.Focus on mutual trust in MCB2.Control on human diversity in the work place3.Healthy care of employees in MCB4.Resolving dispute matters in MCB5.Fair wages and incentive system in MCB

6.Quality, productivity and employmentsecurity in MCB

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