Chapter-V (Vastmedia bank)

CHAPTER NO 5

HUMAN RESOURCES MANAGEMENT AND COMPUTERIZATION OF VM

INTRODUCTION

The area of HRM has gain importance in banking sector. HRM has been critical in brining about many changes in banking sector. HRM has always played a key role in the organizations in handling important key management related issues such as achievement of goals, affirmative work performance etc. Hence HRM is the maximization of the employee competency and motivation with the intent of increasing productivity.

5.1     HUMAN RESOURCES MANAGEMENT OF VM

Every organization has HRM or personal department whether or not a specific personal manager is hire. Every organization must hire highly motivated people for its HRM manager’s post. VM has also very efficient HRM department. ¹

5.2      APPOINTMENT

Appointment for the right person on right job is very critical process. In VM appointment are made by tow method.

¨         Direct method

¨         promoting method

I.          Direct Method

In direct method, VM hire people which has required qualification and experience from the general public through advertisement and selection procedure for level 4 and 5.

II.          Promoting Method

In promotion method VM promoted their employees; whose are highly motivated and eligible for the higher passion like grade 2 and 3.

5.3     RECRUITMENT

The term recruitment has limited and specific meaning. Recruitment is the complement by organization hire the people from mass to fulfill vacant position in the organization or it’s the process of the utilizing the entire source for finding prospective employees. Recruitment we simply say that its mean s hiring right people for right job with the help of advertisement for tracing skilled individuals out of large no employees and applicants

5.3.1    VM Recruitment Process

                   i.            All appointment of employees is made by the competent authorities in according with the policy laid down by the executive board.

                 ii.            A person selected as trainee officer in the terms and condition of his letter of appointment shall continue until further orders.

A.   Age Limit

A candidate shall not be less then 18 years or more then 25 years of age at the time of recruitment in the bank services provided that the age may be relaxed by the competent authority in suitable cases.

B.   Medical Examination

Every candidate must be physical fit, examined by the bank’s medical officer or any other medical authority specified by the bank regard.

C.   Probation

¨           A candidate selected for appointment in category 1 shall be on probation for every year.

¨           Employees other than those in category 1 shall be placed in probation initially for a period not exceeding six month at the discretion of the competent authority.

¨           One the satisfactory completion of the period of probation an employees shall be conformed, the competent authority may extent his period of probation.

5.4       LEAVES

An employee cannot claim leave as a matter of right and the competent authority mat refuse or revoke leave of any description types of leaves.

5.4.1    Leave With Full Pay

The main period of leave on full pay that may be granted at once time shall be as follow.

v    Without medical certificate 120 days.

v    With medical certificate 180 days.

v    On medical certificate from leave account in entire service of 365 days.

5.4.2    Leave With Half Pay

v    Leave on full pay may be converted into half at the option of the employees. The debit to the leave account will be at rate of one day of the every two days on the latter, fraction one half connecting as one full days leave on full days leave on full pay.

v    There shall be no limit on the grant of leave on half pay.

5.4.3    Maternity Leave

Female employees may be granted maturity leave on full pay for the period which may extent up to 90 days from the dater of its commencement or fourth five days from the date of confinement. Maturity leave may not be granted for more then 3 times in entire service of female employees.

5.4.4    In Services Death

In case an employee dies while in service lump-sum payment equal to full payment up to 180 days out of the leave at his credit shall be made to his family as defined for the purpose of family pension.

5.4.5    Recreation Of Leave

It may be granted for 15 days in a colander year i.e. only one a year.

5.4.6    Special Leave

A female employee on the death of her husband may be granted special leave on full pay when applied for not exceeding 130 days.

5.4.7    Leave Without Pay

It may be granted up to maximum period of 5 years at a time provided the employees to when such leave is granted has been in continuous services for a period not less than 10 years.

5.4.8    Disability Leave

Disability leave may be granted to officer/executive who is disabled by injury.

5.5       RESIGNATION

                   i.            Category I employee shall not resign for the services of the bank with out giving 3 months previous notices writing of his intention to do so, failing which he shall be able liable to pay the bank a sum equal to his substantive pay for 3 months.

                 ii.             Employs other then those in category 1 shall not resign from the service of the bank without giving 1 month notice in writing of their intension to do so, failing which they shall be liable to pay to the bank, a sum equal to their substantive for 1 month.

              iii.            The competent authority may waive off reduction lieu of notice period at its sole discretion in special cases.

5.6      PAY ALLOWANCE AND OTHER CONCESSIONS

If the goal of attracting capable employee to the organization is to be achieved, personnel must perceive that the composition offered is fair and equitVMe.³

5.6.1          Pay Scale

In the event of pay scales at any time the president shall have the power to lay down the principles for the re-fixed of the employee affected.

5.6.2          Special Allowance

Kind of allowances for employees at VM are:

v                Special duty allowance

v                House rent allowance

v                Extra payment for extra work

v                Entertainment experience

v                Conveyance allowance

v                Severe winter allowance

v                Technical allowance

v                Special allowance.

5.6.3          Increment

1)                The annual increment in the pay of employee shall be granted on the 1^st January.

2)                The president may grant special increment, but not more than three in one year to an employee, for meritorious services.

5.6.4          Staff Loans

Following types of loans are provided to the employees of bank.

·              Housing finance

·              Transport finance

·              Staff provident fund

5.6.5          Incentives

Incentives are given to employees whose ACR is good; the best incentive at VM is promotion. Promotion opportunities are provide4d to those employees who perform better than the rest.

5.7            TRANSFER

A transfer is the moving of an employee from one job to another. It may involve a promotion, devotion of not change in job status other then moving from one job to another. At VM employees are transferred after 3 to 4 years completion of services transfer depends on the performance of employees.

5.7.1    Inter Transfer Policy

It is a transfer which is made from one station to another or one branch to another. Usually the experienced and efficient workers are transferred to the branch where performance and business of the branch is very high.

5.7.2    Inter Department Transfer

It is related to the transfer from one department or station to another section in a bank. In this every body is able to perform any kind of work in branch.

5.8  PROMOTION POLICY

The purposes of promotion are:

                   i.            To improve training skills and experience ability.

                 ii.            To find out most competent and suitable candidates for vacant position.

5.8.1    Criteria For Promotion

Promotion is made on the following criteria:

i.       On Seniority Basis

Those employees who are senior are promoted to higher ranks e.g. promotion of the officer grade 3 to grade 2. This promotion required minimum 5 years of services in the bank.

 

ii.       Employees Who Have Good ACR

 

The employees who have good annual confidential report, they are also promoted to higher grades.

5.9       COMPUTERIZATION OF VM

The year 1999 closing year of the last millennium had a world wide importance, especially in the area of the computer application. The anticipated problem of Y2K at the turn of the century required technical up gradation to make computer hardware complaint to Y2K. Vastmedia bank has successfully over come the issue of Y2K and hardware installed in the bank and software applications are Y 2K complaint.

During the year under review, the bank embarked upon an ambitious programmed of computerization and over 200 additional branches were computerized. Now there are 378 computerized branches covering 74% deposit and 89% advances of the bank.

Bank is fully aware of the training needs of the staff for smooth running of the newly acquired technology and has developed in-house facility for training, refreshing and updating.

Vastmedia Bank of Pakistan limited. Is fully computerized specially cash receipts and issue system which is designed in COBOL language, the program in which all transaction is carried is known as unibank system.

The process of bank receipt and payment is started and ended in a sequence. The networking system is very organized and supervised in NOVEL NETWARE. The main server is connected to the terminals which are operated by other offices of the bank. All programming is created in COBOL language, which is very organized and protected; all background system is designed in codes which are supported by very technical logical function and operations. All the employees are trained for operating this system. There are many courses offered by the city zone Karachi which directly benefit the performance of the employees these courses are related to their work and operations, these especially courses are related with UNIBANK SYSTEM and all the operations regarding receipts and payments.

All this system is operated in two modes which are;

                   i.            NORMAL MODE

Normal mode can be accessed from any workstation or terminal. Every department officer can access accounts in normal mode from his or her terminal, all officer have write, read, open rights on their terminal in which they debit and credit accounts, they can open we accounts and deposit and withdraw money from customers account according to customer order.

                 ii.            SUPERVISION MODE

Supervision mode cannot be accessed from any work station or terminal. This mode can be accessed from main server only manager has authority to use this mode; he holds the right to rectify and to deal in foreign exchange accounts and minor adjustment modification and reconciliation of account can be made through this mode by manager. ³  

Summary

The area of HRM has gain importance in banking sector. HRM has been critical in brining about many changes in banking sector. HRM has always played a key role in the organizations in handling important key management related issues such as achievement of goals, affirmative work performance etc. Hence HRM is the maximization of the employee competency and motivation with the intent of increasing productivity.

In the nest chapter we discussed briefly about the cash department of VM.

Reference:

1)       D Cenzo A. David & Rabbis P. Stephen. (1996) Human Resources management New Yoke: pp # 158.

2)       Ibid PP 162.

3)       Ibid PP 164.

4)       VM Head Office Notes 2002.