project of principle of managment on basis of swot analysis

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Principal Of Management
NAME: Umar Rasheed
CLASS : BSSE-3A
ROLL NO: 201271
SUBMITTED TO : Sohrab Ahmad

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INTRODUCTION
There are 20 commercial banks in the Pakistan. NBP is one of them. NBP is a
Pakistanigovernment-owned multinational commercial bank which is a subsidiary
of State Bank of Pakistan. Itis headquartered in Karachi, Pakistan. As of
September 2020, ithas 1,511 branches acrossPakistan with assets of
approximately USD 20.2 billion.
The bank provides both commercial and public sector banking services. Itis a lead
player in the debt-equity market, corporateinvestment
banking, retail and consumer banking, agriculturalfinancing, treasury services.
1949 National Bank of Pakistan (NBP) was established under the National Bank of
Pakistan Ordinanceof 1949 and was government-owned. NBP acted as an agent
of the central bank wherever the State Bank did not haveits own branch. Italso
undertook governmenttreasury operations.
NBP got privatized in 2002 and now it is owned mutually by Abu Dhabibased
foreign consortiumand Governmentof Pakistan.
Itis only PakistaniBank with Multinational Status.
The soul of every company is ‘‘vvmost’’ so does NBP. NBP’s vision and mission is
to: 1) Creative a distinctive brand identity by providing the highest standards of
services 2) Adopting the best international management practices 3) Maximizing
stakeholders values 4) Discharging our responsibility as a good corporate citizen
of Pakistan in countries where we operate.
National Bank of Pakistan maintains its position as Pakistan's premier bank
determined to set higher standards of achievements. Itis the major business
partner for the Governmentof Pakistan with special emphasis on fostering
Pakistan's economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large network
of branches locally, internationally and representative offices. The Bank is
providing all banking services of mercantile and commercial banking permissible
in the country, which includes:
• Handling of treasury transactions for theGovernment of Pakistan as agent to
the State Bank of Pakistan.
• Providing services under a Trust Deed was Trusteeto the National Investment
Trust(NIT) including safecustody of securities on behalf of NIT.

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• Accepting of deposits of money on current, fixed, saving, termdeposit and
profit and loss sharing accounts.
• Borrowing money and arranging finance fromother banks.
• Advancing and lending money to its clients.
• Financing of projects, including technical assistance, projectappraisalthrough
long-term short-termloans, term finance and musharika certificates, etc.
• Buying, selling, dealing, including entering into forward contracts of foreign
exchange. Financing of seasonalcrops like cotton, wheat, rice, sugar cane,
tobacco, etc.
• Receiving of bonds, scrip's, valuables, etc. for safecustody.
• Carrying on agency business of any description other than managing agent, on
behalf of clients including Governmentand local authorities.
• Generating, undertaking, promoting etc. of issue of shares and, bonds, etc.
• Transacting guaranteeand indemnity business.
• Undertaking and executing trusts.
• Joint venturing with foreign dealers, agents and companies for its
representation abroad.
• Participating in "World Bank" and "Asian Development Bank's" lines of credit.
• Providing personalized Hajj services to intending Hajjis.

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SWOT ANALYSIS
Swotanalysis is the internal analysis of any organization. Itis the analysis that
describethe internal strengths, weakness of the bank. And the opportunities and
threats for them.
The swotanalysis of national bank of Pakistan are following
Strengths:
The strengths is the main and important part of any organization which helps
them to become competitive organization. The strengths of national bank of
Pakistan are:
 National bank of Pakistan is the first nationalize government bank in
commercial banking. NBP make their policies according to the government
rules and regulation
 National bank of Pakistan has westernunionfacility. Itis the fastestway to
transfer money from abroad.
 Being an oldest bank, NBP has a broad-base network. NBP has more than
1200 domestic branch network located in all over the Pakistan. And, have
almost 22 overseas branches.
 The main strength is NBP is the ATM founder. NBP provide large number of
ATM facility to their customers.
 National bank of Pakistan is the only bank work as an agent of state bank.
 NBP provideonline banking facility. Theonline services of NBP are very
speedy.
 NBP performCSR (corporatesocialresponsibility), and due to this NBP
called "the nation's bank"
 The loyalty of NBP employees are very high. That's why the turnover rateof
national bank of Pakistan is very low. As a govt bank NBP providemany
facilities to their employees.
 NBP providejob security to their employees with more benefits.
 As a governmentbank, NBP earn commission on govt. transactions. And
NBP also havemore deposit than other banks becausedue to the
government bank, people havemore confident and feel securetheir
money in NBP.

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 NBP is highest rating bank and achieved many awards on national and
international level due to its performanceand efficiency.
Weakness:
National bank also havesome weakness as their strengths. Theweakness are:
 As a governmentbank, the main weakness is political pressure. Itcreates
the negative impacts on bank becausesome people take advantageof this
pressure.
 National bank of Pakistan not doing any advertisement and less marketing
to promote their products and services. Other banks like Allied and HBL
doing many advertisings to promotetheir services.
 NBP has less computerizednetwork. Lack of modern equipment's.
Computerized systemsavetime energy of employees. But NBP used
manual systemas well
 There is the shortage of employees in NBP due to this some employees
have a lot of work burden.
 The work distribution in NBP is uneven. Some employees havea workload
and someother are free.
 As a governmentbank, at the time of recruitment, they are doing
favoritism. And the favoritismis also taken at the time of promotion and
bonus.
 NBP has less trainedstaff and insufficient technical education. So due to
this problem the work distribution is uneven Mostly employees of the bank
not even know how to use computer.
 NBP has no modem IT system. They used old systemwhich are not proper
and hanged some time. Due to old ITsystemin modern era NBP face many
problems.
 National bank of Pakistan has less online branches. In smallareas, people
not get much facilities there. So, they mustmove to large cities to get those
facilities like remittance, online transfer.
Opportunities:
There are many opportunities for NBP which are

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 The opportunity for NBP is growing banking system. Theadvance
standards and more contribution in market help NBP for growing their
banking system.
 NBP need to focus on electronic banking system Becausea world
become a global village due to advancementof latest technology. NBP
must increaseand adopt latest technology to providegood services.
 As a governmentbank, NBP has more scopein economic market. NBP
have a large no. of branch network in Pakistan so it is a great
opportunity for them
 NBP can earn more commission on govt transactions, becauseit work as
an agent of SBP (State Bank of Pakistan).
Threats:
The threats for national bank of Pakistan are following.
 The main threat is competitors. Now many commercialbanks are
opened, and they providemany services and products same as
national bank of Pakistan. New competitors specially foreign banks
who provideservices meet the standard. And they attract lots of
customers through promotion of their services.
 Customers satisfaction is moreimportant. If customers arenot
satisfied, then they moved/ switch to other bank. NBP mustfocus to
the customers complains. And removed those complains as soon as
possiblefor their satisfaction.
 NBP must adopt modernbanking systemBecause many branches of
NBP used traditional way. So, it may cause to reduce the satisfaction
of their customers and the employees also.
 National bank of Pakistan as a governmentbank chargehigh interest
rate on bans and other services. Other banks chargelow rates so, it
become a threat.
 National bank of Pakistan is a governmentbank and work under their
rules and regulations. So, the political pressure by elected
governmentis a threat for bank in shape on loans.

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CURRENT MANAGEMENT PRACTICES
CurrentManagement Practices worked on this basis of “POSLC (Planning,
Organizing, Staffing, Leading, Controlling)”.
Here Planning may include good setting of employees. NBP’s every action is well
planned. Itis a complete organization.
HR DEPARTMENT
NBP is the employer of choice. The whole NBP family comprises of committed and
dedicated members with passion to servein their respective functional areas. The

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Bank has challenging work environmentwhere merit and performancehelp the
individuals to explore their true potential. As a caring employer the Bank enables
the employees to excel and grow in highly congenial employment conditions and
culture. The career path is full of challenges and opportunities. The Bank has
absolutely open culture wheremembers shareand communicate freely.
NBP’s HR Mission Statement:-
“To Providemore Talented Human Resources in relation to competition in all NBP
functional areas and keep them motivated and maintain total industrialharmony”
Values:
 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.
HUMAN RESOURCE MANAGEMENT
Human resourcemanagement involves all management decisions and practices
that directly affect or influence the people, or human resources, who work for
the organization. In recent years, increased attention has been devoted to how
organizations manageHuman Resources, This increased attention comes from
the realization that an organization's employees enable an organization to
achieve its goals and the management of these human resources is critical to an
organization's success
"Human resource management (HRMor simply HR) is a function in organizations
designed to maximize employee performancein serviceof their employer's
strategic objectives. HR is primarily concerned with how people are managed
within organizations, focusing on policies and systems".

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"The process of hiring and developing employees so that they become more
valuable to the organization"
Functions of HRM:
1. Planning for Organization, Jobs and People
 Strategic Human Resources
 Human Resources Planning
 Job Analysis
2. Acquiring Human Resources
 FEO (Equal Employment Opportunity)
 Recruiting
 Selection
3. Building performance
 Human Resources Development
 Human Resources Approaches to improving Competitiveness
4. Rewarding employees
 PerformanceAppraisal
 Compensation and Benefits
5. Maintaining HumanResources
 Safety and Heath
 Labor Relation
 Employment Transitions
6. Managing Multinational HRM

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Objective:
Human Resource Management refers to the practices and policies one need to
carry out the people or personnel aspects of one's management job. These
include:
 Conducting job analysis (determining the nature of each employee's job)
 Planning labor needs and recruiting job candidate.
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (determining how to compensateemployees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and development
 Building employee commitment.
Human Resource Planning
Job Analysis:
The procedurefor determining the duties and skill requirements of a job and the
kind of person who should be hired for it.
The process of job analysis is of two types:
 Job Description
 Job Specification
A. Job Description:
A list of a job's duties, responsibilities, reporting relationship, working conditions,
and supervisory responsibilities- one productof a job analysis.
B. Job Specification;
A list of a job's "human requirement", that is, requisite education, skills,
personality, and so on another product of a job analysis.
Human Resource Planning:

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Have collected Human resourceplanning is concerned with the flow of people
into, through, and out of an organization. HR planning involves anticipating the
need for labor and the supply of labor and then planning the programs necessary
to ensure that the organization will have the right mix of employees and skills
when and where they are needed.
Human Resource Demand:
Once HR planners havecollected information fromboth internal and external
sources, they forecastthe demand for labor. How many and what type of people
will be needed to carry outthe organization's plans in the future? These forecasts
are grounded in information about the past and present and in assumptions
about the future, Differentmethods of forecasting the demand for labor require
different assumptions. Someof the morecommon assumptions arethat past
trends and relationships among variables will hold up in the future; that the
productivity ratio constant(or follows a known patter) as the number of units
produced increases; and that the business plans of the organization, sales
forecasts, and so on are reasonably descriptiveof what will actually happen In a
highly volatile business, theseassumptions may notbe valid. Itis always wish
explicit list one’s assumption in forecasting and put on more faith in forecastthan
in the assumption on which it is based.
Recruitment and Selection
Recruitment:
Itrefers to the process of attracting, screening, selecting and on boarding a
qualified person for a job. In the perspective of management's philosophy
regarding acquisition of talent, recruitment activity was concentrated at the entry
level positions. This approach being in line with strategic needs of the Bank was
undertaken to hire skilled human resource. This approach also serves as a
progressivecareer path for our workforcethrough mechanisms such as career
development and succession planning.

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Selection of the right people for the job is the firststep towards developing an
efficient institution. Great stress has thereforebeen laid on ensuring that the
recruitment process at the NBP is highly competitive, transparentand merit
based. As a resultof this conscious policy, we have been able to attract someof
the top talent in the country in the fields of Economics, Finance, Business
administration, IT, Accounts and Audit as well as Statistics. As an Equal
Opportunity Employer we consciously seek diversity in terms of education,
geographicalrepresentation and gender and have actively encouraged women to
apply for positions at the NBP. As one of the largest employers of professionalin
the country, with intake of more than 70 fresh graduates at entry level positions
and frequent recruitment at senior levels, we have -successfully developed a
systemthat is unblemished by nepotism, subjectivity and political interference,
All recruitment is through open advertisementand follows a well-drawn out
procedureinvolving thorough scrutiny of all applications according to clearly
specified criteria, written tests developed and administered by external experts
and interviews by a panel that has representation fromour Board of Directors as
well as private sector specialists in the relevant field. This commitment to quality
and merit will continue in our recruitment and other managerial actions.
When a vacancy occurs and the recruiters receive authorization to fill , the next
step is a careful examination of the job and an enumeration of the skills, abilities,
and experience needed to performthe job successfully.
RECOMMENDATIONS:
1. Staff strength should be enhanced and professionalqualified persons
should be recruited.
2. Itis recommended that proper training be provided to the staff members
that will ultimately increasethe performanceof Bank over all.
3. Itis suggested that promotion be given to the staff in due time and on the
basis of performanceto providejob satisfaction.
4. The bank should spend more on renovation of the branches to improve
environmentand atmosphere to attract the customers.

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5. There should be a proper desk for customer's information in every branch.
6. Sitting arrangement, air conditioning and new furnitureshould be
facilitated
7. The Bank should introduce the computers softwareto cope the heavy load
of work and better control.
8. Extra counters should be established in order to facilitate during the rush
days the difficulties faced by the bank staff as well as the customers.
9. All the departments should be established separately in every branch.
10.The Bank should increase profitrate on deposits and saving schemes
especially for pensioners and old age citizens.
References
I. Website of the Bank i.e. www.nbp.com.pk
2. Economic Bulletin, Vol 34, No.5 September - October 2013, published
bi- monthly by Economic Research Wing, National Bank of Pakistan
3. NBP News lines, National Bank of Pakistan's Newsletter January 2013.
4. NBP News lines, National Bank of Pakistan's Newsletter May/June,
2013.
5. NBP News lines, National Bank of Pakistan's Newsletter July/August,
2013.
6. NBP News lines, National Bank of Pakistan's Newsletter
September/October, 2013.
7. Management Brief, January 2008 published by Human Resources
Management and administration Group, National Bank of Pakistan Head
OfficeKarachi.
8. Annual Report 2007, published by NBP, Head OfficeKarachi.
9. Brochure- NBP Awards & Achievements.