HR Practices in

National Bank of
Pakistan

Group members
Sahar Naeem
Saima Bilal
Shabnam Mushtaq
Robina Taj
Tahira Tabassum

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Contents
Introduction

Human

to National Bank of Pakistan

Resource department at NBP

Organizational
Human

chart of HR department

Resource Planning and Forecasting

Employee
Training

Recruitment & Selection

and Development

Performance
Employee

management

compensation and benefits

Introduction to National Bank of

Pakistan

NBP was established in 1949 under the National Bank of

Pakistan Ordinance and was owned by government at that
time
Acted as an agent of the central bank wherever the State
Bank did not have its own branch
NBP got privatized in 2002 and now it is owned mutually
by Abu Dhabi based foreign consortium and Government
of Pakistan
It is the only bank in Pakistan's financial sector that
caters for all type of financial needs of the customers as
well as the State
It is the only Pakistani bank with multinational status
NBP has 1200 local branches, 18 overseas branches along

Human Resource department at NBP

At start there was no concept of manpower planning in NBP

But after the privatization of NBP massive programme was launched

by new leadership to introduce a Culture Change in the organization

1.
2.
3.

Main purposes of this culture change process were:

Transformation of NBP from service organization to service/profit
earning entity
Introduction of technology based infrastructure eliminating old
manual ledgers
Induction of highly educated and professional employees in the bank
through all Pakistan open merit written examination conducted by
Pakistan Banking and Finance Services Commission
For this purpose a separate Group has been created in the bank to
handle HR matters It is called Human Resource Management and
Administration Group and it is presently being headed by Dr. Mirza
Ibrar Baig.

HR Mission

Provide more talented Human Resource in all NBP functional areas in

relation to competition
Keep all the employees motivated and maintain total industrial
harmony

NBP Values
NBP believe that:

People make the organization

People collectively yield results
People have ambitions and aspirations to be distinguished and
rewarded
People form the human capital to be developed and invested in

Organizational Chart of HR department

President

Dr. Mirza
Ibrar Baig SEVP /
HR Group

Secretary

Coordinator

Institutional
Discipline
Wing

Recruitment &
Selection

Legal Affairs

Staff Loans &

Welfare

OD&T Wing

Industrial
Relation Wing

HR Policies &
Project

Personnel
Administration

Regional HR
Chiefs at RHQ
levels

Human Resource Planning and

Forecasting

HRP is the process of analyzing organization's

human resource needs in the light of organization's
objectives, corporate and business level strategies.
It includes:
a.
b.
c.
d.
e.
f.

Developing plans, policies, and systems to satisfy HR

needs
Setting human resource objectives and deciding how
to meet them
Ensuring HR resource supply meets human resource
demands
Comparing forecasts of demand and supply
Planning the actions needed to deal with anticipated
shortage or overages
Feeding back HR information into the strategic
planning process

Human Resource Planning and

Forecasting (cont..)

HRP process at NBP

Interfacing with strategic planning and scanning the

environment
Taking an inventory of the company's current human
resources
Forecasting demand for human resources
Forecasting the supply of HR from within the organization
and in the external labor market

Human Resource Planning and

Forecasting (cont..)

Methods of forecasting HR needs

1.

Internal Supply Forecasting Information

Organizational features (e.g., staffing capabilities)
Productivity - rates of productivity, productivity
changes
Rates of promotion, demotion, transfer and turnover

2. External Supply Forecasting Information

External labor market factors (retirements, mobility,

education, unemployment).
Controllable company factors on external factors
(entry-level openings, recruiting, compensation).

Human Resource Planning and

Forecasting (cont..)

Factors Affecting HR Forecast and

Planning

Sales and production forecasts

Effects of technological change on task needs

Variations in the efficiency, productivity, flexibility of

labor as a result of training etc

Changes in employment practices

subcontractors or agency staffs etc)

(e.g.

use

of

Variations, which respond to new legislation, e.g. payroll

taxes or their abolition, new health and safety
requirements
Changes in Government policies

Forecasting as a Part of Human

Resource Planning
SUPPLY
FORECASTING

Choose Human Resource

Programs

Determine
Organizational
Objectives

Internal Programs

Demand
Forecast For
Each Objective

Aggregate
Demand
Forecast

Promotion
Transfer
Career
Planning
Training
Turnover
control

Internal Supply Forecast

Does
Supply
Meet
Demand?

External Programs

Recruiting
External
Selection
Executive
Change

External Supply Forecast

Aggregate Supply Forecast

NO

YES
Go Feasibility Analysis Steps

Employee Recruitment & Selection

Recruitment of staff is preceded by:
1.
2.

3.

Job analysis
In the case of replacement staff a critical questioning
of the need to recruit at all (replacement should rarely
be an automatic process)
Use external expert consultants for recruitment and
selection

Equally organization may seek help from 'head

hunters', to recruit executives
5. Recruitment and Selection should screen for suitability
of applicants as poor selection costs a lot even for the
mundane day-to day jobs
6. NBP strictly follows merit policy for recruitment and
selection of employees in the bank
4.

NBP recruitment process

Recruitment &
Selection

Advertising

Bank Sources

Institute of
Bankers Pakistan

Evaluation Criteria

Personality Test

Interviews

Background
Checks

Sources of Candidates
Internal Sources

1.

HR Group Head Office Karachi

All the Groups in NBP
Regional HR Wings
Special products divisions

External Sources

2.
1.

2.
3.

Industry
Educational institutions
Institute of Bankers in Pakistan

Employment selection process

As per requirement of the bank, the HR group

circulates details of all the vacancies in all the
branches through Regional HR Departments
Applications are screened of internal applicants and
suitable candidates are called for interview after
scrutiny

Employment selection process

(cont)
Advertisement in Media
Applications, CVs from Prospective Candidates
Shortlisting at HR group, Head office Karachi

Call Letter for Written tests by IBP

Shortlisting and Call Letter for Interviews
Selection of Candidates from Interviews

Job Offer Letters , Orientation and Training of Successful Candidates

Job Opportunities in NBP

1.

Management Trainees

2.

Professionals

3.

MBA lady officers

4.

Customers Facilitation Officers

5.

Cash staff

Training and Development

Training is the systematic development of the attitude,

knowledge, skill pattern required by a person to perform a
given task or job adequately
Development is 'the growth of an individual in terms of
ability, understanding and awareness'

Need of Training and Development

1.

Develop workers to undertake higher-grade tasks

2.

Provide the conventional training of new and young

workers (e.g. as apprentices, clerks, etc.)

3.

Raise efficiency and standards of performance

4.

Meet legislative requirements (e.g. health and

safety)

5.

Inform people (induction training, pre-retirement

courses, etc.)

6.

From time to time meet special needs arising from

Training Process
Training need assessment (TNA)

Keys factors affecting training needs assessment are:

Defining Gap: Between Current and Desired Performance
2. Structure of training needs: Whether Organizational
Performance, Individual behavior and performance or
Overall competence needs to be improved
3. Needs Level in an Organization:
a. Individual needs like knowledge, skills, attitude,
performance etc
b. Group needs like teams, groups, needs of group as a
whole
c. Organizational needs like environment, competitors,
peers, etc
4. Quantitative/qualitative

Employee development

It is based on TNA of an employee

Special training programs are arranged by
Organizational Development and Training Wing
headed by Executive Vice President Mr. Muhammad
Hanif at NBP
OD&T Wing formulates education and training
programs for all levels of employees from
executives to lower management
NBP has various Staff colleges across Pakistan for
this purpose

Types of Trainings at NBP

1.
2.
3.

4.
5.
6.
7.
8.

9.
10.

Know your customer & Anti Money Laundering

(KYC, AML)
Basic Foreign Exchange
International Banking
Credit Risks and how to counter Risks
Frauds/ Forgeries detection and prevention
New Account Opening
Employees Communication Programme
MS Office courses
Management Courses
Annual Appraisal Formats

Employment Training and

Development Methods
1.
2.
3.
4.
5.
6.
7.
8.

Work shop
Dialogue Sessions
Quiz Programs
Lectures by NBP resource persons or
professionals from other institutes
On job Training
Tours of Trainees to different offices
Seminars
On spot training by visits of resource persons to
the respective regions

Performance management

Necessary

because

it

improves

organizational

performance via improving individual performance

It identify individual potential, what can be done to

get better results from individual skills

Helps in Appraisals and Promotions

Category

Examples of Performance standards in

different departments
Standards

Business

Targets for Deposits, Advances, Profits,

Business Volume, Import/Exports, New
Products

Operations

Operational matters like Internal workings,

Complaints and complaints handling Staff
positioning , Customer care, Follow up of
procedure, Prudential Regulations , KYC,
AML

Compliance

Audit, Audit category, Audit irregularities

and their rectification, Compliance of audit
manual, Compliance of procedures, SBP/
External audit

Credit

Credit procedures, Credit formalities, Legal

issues, Export handling documents, FIM
creation, SBP Prudential Regulations

HR

HR Issues, Training and Development,

Training needs assessment, Transfers &
postings,
Disciplinary
cases,
Frauds/
forgeries handling, Industrial relations

Performance reports

NBP has was using old ACR system for employees

evaluation until 2004 when Performance based
Appraisal system was launched by HRM in NBP

According to this system employees are assigned

SMART job goals at the start of the year then mid
year and final evaluation is made at the end of the
year on the basis of these set targets
Further employee evaluation is done by his
immediate boss regarding his motivation and
behavior, then employee report is prepared with his
consent to eliminate biasness
These reports provide basis for employee
appraisals, promotions and training need assessment

Employee compensation and

benefits

Gives motivation to employees, help retain good staff, and

encourage employees to give their best
Employee compensation and benefit rules are decided by
government along with market mechanism
Good Employment Benefits in NBP ensure minimum turnover
rate

Employee compensation and

benefits (cont)

Competitive Wage Policy

At present, salary structure of NBP employees is much

better than its competitors. Besides basic pay, following
allowances are also paid to employees irrespective of their
grade or scale
House Rent Allowance (50% of basic pay)
Conveyance Allowance (minimum 90 liters of petrol to
clerical staff, 120 liter OG-III, 130 Liters OG-II, 140 to
OG-II, 240 TO AVP and so on.)
Utility Bill Allowances
Education Allowances
Medical Allowances (for medicines)
Maternity Allowances

Employee compensation and

benefits (cont)

Spot Cash Awards:

They

are awarded for extraordinary counter service or adopting

precautionary measures to prevent frauds/ forgeries

Special Cash Awards:

Every

year, best performers are awarded with cash awards

ranging from Rs. 100,000/-to Rs. 500,000/- depending on the
grade of the employee
Mostly

managers are benefited from this award to motivate them

for procuring more business

Employee compensation and

benefits (cont)

Annual Increase:
Employees

(AVP and above) get annual increase in their basic pays

depending on their performance, cost of living with increase rate

varying from 4% to 17%
All

other employees get their annual increase as per rate

announced by the Head Office irrespective of their performance

However

from the year 2009, concept of "Pay for Performance" is

implemented in NBP for all the officers and executives

Loan

Facilities

Motor

Cars for Branch Managers

Promotions

Employee Job Changes

Factors affecting the employee job changes are:
Specialized Assignments
Specialized Work Force
Introduction of Special Products

Job changes within organization

Transfers: maximum period for an employee to stay at one
place is three years in NBP
Separations
Terminations
Resignations
Retirement

Organizational career management

It is based on the policies of the organization
keeping in view following factors:

1.

2.
3.

4.
5.
6.
7.

8.

Resources
New developments
New products
New policies
Motivation
Promotions
New employments
NBP always stresses the need for career management
due to its ongoing development and progress to meet
the requirement of competitive environment prevailing
in the banking sector

Conclusion

NBP is the employer of choice

The whole NBP family comprises of committed and
dedicated members with passion to serve in their
respective functional areas
The Bank has challenging work environment where
merit and performance help the individuals to
explore their true potential
NBP is a caring employer which enables the
employees to excel and grow in highly congenial
employment conditions and culture