HRM - MCB

HISTORY OF MCB
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• Before separation of Indo Pak, the need for more
Muslim banks was felt. And Muslims having strong
financial capacity were thinking to invest in this
sector as well. This was the idea which provided
the way for setting up MUSLIM COMMERCIAL
BANK Ltd known as MCB. This was the third
Muslim bank in the subcontinent.
• This bank was incorporated under companies’ act
1913 on 9th July, 1947 (just before partition) at
Calcutta.
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• MCB is one of the leading banks of Pakistan with
a 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 1,000
branches
• Over 450 ATMs in the market.
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HRM PROCESS IN MCB
•Human resource planning and forecasting
•Employee Recruitment and Selection
•Training And Development
•Performance Management
•Employee Compensation And Benefits
•Organizational Career Management
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Human resource planning and
forecasting
Human resource planning and forecasting includes the specific and
interrelated 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 resources
is to estimate labor requirements at some
future times period. Such forecasts are of two
types.
1.The external and internal supply of labor
2.The aggregate external and internal supply of
labor
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Methods To Forecast HR Needs
• Zero-base Forecasting:
This method uses the MCB’s current level of
employment as the starting point for determining
future staff needs in MCB.
• Bottom-up Approach:
It is the forecast method in which each successive
level of the MCB, starting with the lowest and
forecasts its employee requirements in order to
ultimately provide an aggregate forecast of employee
needs.
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•Use of mathematical models:
Mathematical models are also used for forecasting
HR requirements. It defines relationship between
demand and the number of employees supplied.
•Simulation:
It is a technique for experimenting with a real world
situation through a mathematical model representing
that situation
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Employee Selection and Recruitment
“People are at the heart of our success”
“Recruitment is the discovering of potential
applicants for actual and anticipated
organizational vacancies”
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Human Resource Department has combined many selection
techniques 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 which
position is going to be filled and there
requirement is analyze by job analysis:
• Identify Candidates:
MCB identifies its candidates by developing
the criteria of job description and job
specification and acting upon these criteria
job vacancy ads are spread through different
Medias 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 to
another with more benefits and greater responsibility
based on efficiency and experience.
III. Others are
Upgrading And Demotion
of present employees according to their performance.
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IV. Retired And Retrenched Employees
may also be recruited once again incase of shortage of
qualified personnel or increase in load of work. Such
people save time and costs of the organizations as
the people are already aware of the organizational
culture and the policies and
procedures.
V. The dependents and relatives of
Decreased Employees And Disabled Employees
are also done by many companies so that the
members of the family do not become dependent on
the 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 many
processes and steps that must be followed.
•Decide what positions to fill, through
personal planning
and
forecasting
•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 initial
screening Interviews.
•Use selection tools like tests, background
investigations, and physical exams to identify
viable candidates.
•Decide who to make an offer to, by having the
supervisor and perhaps others interview the
candidates.
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Screening And Short Listing
• Many candidates apply for job in response to
vacancy ads by submitting their CVs. Selection
board goes through those CVs and selects
those candidates which initially fulfill criteria
of selection board. After prescreening
selection board short lists the candidates who
are considered most suitable for job at initial
level on the basis of their resume
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Test / Interview
• In this process short listed candidates are called for test
and 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 job
performance on the basis of applicant’s oral responses
to 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 those
candidates who have past experience of job.
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Stress:
An interview in which the interviewer seeks to make the
applicant uncomfortable with occasionally rude
questions that supposedly to spot sensitive applicants
and those with low or high stress tolerance. These
sorts 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 how
candidates think under pressure
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Testing
Organizational performance always depends in part on
subordinates having the right skills and attributes. Keep in
view this point MCB tries its level best to hire highly skilled
and suitable employee for each job. For judging these skills
MCB 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 is
called reliability and the accuracy with which a test and
interview what it purports to measure or fulfills the
function 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 are
intelligence tests.
2.Aptitude tests:
Tests that measure specific mental abilities, such as
inductive and deductive reasoning , verbal
comprehension, memory, and numerical ability
are aptitude tests
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•Stress:
An interview in which the interviewer seeks to make the
applicant uncomfortable with occasionally rude
questions that supposedly to spot sensitive applicants
and those with low or high stress tolerance. These
sorts 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
how candidates think under pressure
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Tests Of Physical Abilities
Tests that measure static strength, dynamic
strength, body coordination, and stamina are
physical. Job related to guards and deliverers
go through this sort of test .
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MCB recruits candidates in three
cadres
• 1.Probationary Officers ( entry point
for fresh graduates )
• 2.Management Trainees
• 3.Contractual Appointments
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Final Selection
After going through all the processes the best
candidates according to MCB’s selection boards
are selected. The candidates, who are finally
selected, are offered appointments as
probationary officers, after signing the following
bonds
1. Bank’s Secrecy Bond
2.Bank’s Security Bond
3.Service Agreement Bond
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Orientation
Just after final selection and before starting of training
process orientation is conducted for selected
employees in orientation new employees are provided
with basic background information about the MCB the
basic 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 people
learn knowledge and/or skills for a definite
purpose”.
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
trainee’s 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 small
representative audience.
• Implement the program:
Actually training to the targeted employee
group.
• Evaluation:
Assesses the program’s 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 an
instructional systems design process. The
instructional systems design process begins by
conducting needs assessment.
• Needs Assessment refer to the process used to
determine if training is necessary.
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• Because needs assessment is the first step in
the instructional design process:
• If it is poorly conducted, training will not
achieve the outcomes or financial benefits the
company expect
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Needs assessment involves
Organizational Analysis 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 emphasized
in 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 from
a 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 and
development
The Bank has the latest state-of-the-art training
facilities at its Training &Development Center
(TDC) and a dedicated training team to look after
most of the training needs of its employees. MCB
uses following programs for training and
development
• Management Trainee
• Management associate
• Cash officers
• Internships
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EMPLOYEE DEVELOPMENT
Employee development is a joint, on-going effort on
the part of an employee and the organization for which
he or she works to upgrade the employee's
knowledge, skills, and abilities. Successful employee
development requires a balance between an
individual's career needs and goals and the
organization's need to get work done . Employee
development programs make positive contributions to
organizational performance. A more highly-skilled
workforce can accomplish more and a supervisor's
group can accomplish more as employees gain in
experience and knowledge
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Performance Management
• It is the description of job-relevant strengths
and weaknesses of an individual or a group.
Setting and clearly communicating
performance standards and expectations ,
observing and providing feedback, and
conducting appraisals enable you to achieve
the best results through managing employee
performance.
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Setting Performance Standards
• In MCB, performance expectations are the basis for
appraising employee performance. Written performance
standards let supervisor compares the
employee's performance with mutually understood
expectations and minimize ambiguity in providing feedback
. Having performance standards is not a new concept;
standards exist whether or not they are discussed or put
in writing. When observed an employee's performance,
supervisor usually makes a judgment about whether that
performance is acceptable . How do you decide what's
acceptable and what's unacceptable performance? The
answer to this question is the first step in establishing
written standards
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Performance Appraisal
• MCB Pakistan’s performance appraisal system is based on a
combination of 'MBO‘ and 'Enabling Traits' approaches,
under which:60% weight age is given to performance goals
discussed and laid out in the beginning of the year.
Another 40% weight age is assigned to enabling personality
factors, which are clarified to all employees by their
supervising officers at the start of each year . The system
and process flow of the appraisal process is modified,
improved and upgraded from time to time in line with the
Bank's requirements, as well as with industry practices. HR
Department notifies all units of the Bank of the PA system
and procedure currently in use. Units are also notified
deadlines for goal setting, form filling, monitoring and final
appraisals.
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Employee Compensation And Benefits
• An organization reward system is a program or
scheme which provides incentives for those individuals
or groups who perform well in the organization. This
reward system in actual motivates employees to
perform well by attracting with well designed incentive
packages. It includes anything an employee values and
desires that an employer is able and willing to offer in
exchange for employee contribution . Compensation is
payment to an employee in return for their
contribution to the organization , that is, for doing their
job. Compensation includes topics in regard to wage
and/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 and
provides sufficient rewards to employees for
their knowledge, skills, abilities, and performance
accomplishments. Balancing these face that the
employer can attract, retain, motivate (ARM) and
reward the performance of employees requires
considering 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
• 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 a
well-thought out plan, to get you there is called Career Planning."
• In employment context, career planning is continuous process of
evaluating your current lifestyle, likes/dislikes, passions, skills, personality,
dream job, and current job and career path and making corrections and
improvements to better prepare for future steps in your career, as needed,
or to make a career change . Career planning is important because the
consequences of career success or failure are linked closely to each
individual’s self concept, identity and satisfaction with career and life. In
the new concept of career management, company and the employee are
partners in career management.
• According to a view, “A job is just an opportunity to learn new skills that
you can then peddle elsewhere in the market place “.
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Employee job changes
It is the responsibility of top management to develop and
implement a cost-effective career planning program must
fit the nature of the business, its competitive employment
practices and the current (or desired)
organizational structure . This process is complex because
organizational career management combines areas that
previously have been regarded as individual issues :
• Performance appraisal
• Development
• Transfer
• Promotion
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• Termination:
Usually, this process is perceived negatively by employees. In
termination, an employer uses his right to terminate the contract of
an employment. There can be many reasons for an employer to
terminate the contract of employment but some of the common
reasons 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 better
opportunities; a better position at a better compensation package
in a branded company (or better known company) in a same city
and country or in a different city or different country . So, an
employee 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 company
•For foreign or international assignment
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Retirements
• Employees at all levels in MCB get retirement
after either the completion of 30years in service
or reaching an age of 60 years. The bank operates
the following staff retirement benefit schemes for
its employees :
For employees who did not opt for the new
scheme, the bank operates the following:
I . Approved contributory provident fund
Ii . An approved gratuity scheme
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LABOUR MANAGEMENT RELATION
1.Focus on mutual trust in MCB
2.Control on human diversity in the work place
3.Healthy care of employees in MCB
4.Resolving dispute matters in MCB
5.Fair wages and incentive system in MCB
6.Quality, productivity and employment
security in MCB
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HRM - MCB

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