CHAPTER NO 8
FINDINGS AND RECOMMENDATIONS
INTRODUCTION
The objective of the bank is to provide special service to it customers, and to maintain the best standards. A system of checking and counter checking is in vogue bank but because this system is not enforced effectively as such. So there are complains from the customers.
8.1 FINDING:
The objective of bank is to provide services to its customers, and to maintain the best standards. A system of checking and counter checking is in vogue in the bank but because this system is not enforced effectively as such there are complaints from the customers. Some of the problems highlighted are as follows:
1. Computer systems are not available bank of Pakistan
2. In the branch, there is long queuing problem, which is adversely effecting the operation of the branches. This is because of the overload upon cashiers.
3. In the VM there is no facility of deposit of cash in late hours of the day once the bank closed. The located in heart of the business and not a days business are closed very late so business man face problem in deposit of cash after the working hours.
4. Sometime cashier leaves the counter alone in working hours or keep themselves busy in trivial things.
5. VM does not provide the facility of pick and drop to i9ts staff, it’s the big problem for the staff specially whose who live in for distance to come on time.
6. Cashiers are always under psychological pressure of shortage of cash which they are supposed to make good then loss.
7. The cash payment to illiterate person is not safe as the bank check only thumb impression with no reference to the ID card copy.
8. The VM check center branch is very small in term of capacity. In the branch have only one main room and one store room which create problem not only for staff but also for customer especially female customer.
9. The staff in VM is very short i.e. the staff posted in the branch can does work hard to finish their daily work.
10. The decision of the manger are not properly supported and backed up by the higher level management.
11. Turn over means the movement of the organization employees from the organization. The turn over rates in VM is very low but still propel leaves their job.
12. VM install computer system all their branches throughout the country for online banking. But its create problem for customer because many branches especially remote branches are down during the banking hours. Customer an able to transfer quickly their money from one branch to another branch.
13. VM has the point system of performance appraisal. The bank evaluates the employees annually and monthly, on the basis of these evaluations special increment are given to the employees.
14. The bank at present has cancelled all medical allowances of its entire staff which was very important for them and their dependents.
15. The working hours of the bank is 8 hours par day. In respective of the grade to which they belong and the salary they draw, although they often have to stay in the bank even after the working hours.
8.2 RECOMMENDATION
It is known fact that is this world no body is perfect, as there is always a space of improvement. Every organization, no matter how successful it may be is most likely to face some problems. This could be due to week planning, non standard and misdirected or mismanage operations or may be due to lack of proper training of the work force. VM is course a well be replaced or removed with new setup of ideas which would result in better and effective working environment. Some of the recommendations are listed below.
1. Turnover rate which is very low at presently can be reduced more by increasing monitory compensation and by providing maximum facilities.
2. Staff at VM, check center is overburdened. Many busy departments are handled by only one person with out any one’s assistance. It reduces the efficiency of work. They management provide assistance to facilitate the work of their seniors. Hiring the new assistance and some lower staff would not add too much cost to the bank. Their salary ranges between Rs: 5000/ to Rs: 8000/ and Rs: 5000 to Rs: 3000/ respectively. With such a financial cost, bank can hire new staff easily.
3. VM, check center lacks a proper appraisal system from head office. There are many deserving employees who are not getting their appraisal due and other employees get benefit at the expanse of other. This situation creates dissatisfaction in employees and their motivation level is decreased substantially. They do not perform their routine activities enthusiastically. For this reason VM needs to revise its performance appraisal system.
4. All functions of cash department are manual, which is more risky and time consuming, for this computerized system should be introduced in order to increase efficiency of department.
5. In check center is overload upon cashier, which is creating a lot of queuing problem in the bank and adversely effecting the other operations of the branches during the business hours. For this, due consideration should be given by either increasing the number of cashier in the branches or asking other officials to help the cashiers out whenever someone is free. For example the persons in account opening department may take out some time to help the cashiers in their busy work hours.
6. Some customers want to deposit massive cash in evening when the cashiers have closed the books. However, the cash department does not take risk by accepting the cash. There should be relaxation to cash department from head office to accept massive amount after closing of the books and record this cash to next working day.
7. the location wise the branch is located in between bazaar but office space is not enough for banking transition and bank is not renewal their rent contact last 3 years so bank need their bank to other location which is suitable for bank. This place customer will shift the main sadder branch which is just 5 mint walking distance so bank has the chance to make more customers if open their branch near to army flats sadder.
8. Now a day’s business and the market remain open after when banks close. For doing transaction people need cash and there is excessive demand for ATM. There should be installation of ATM under the custody of cash department in order to increase bank’s own business.
9. Sometime cashier leave the counter alone in working hours or keep themselves busy in trivial things. This should be seriously taken into consideration otherwise it may cause unwanted consequences for the bank in term of annoying the customer or missing seal, currency notes or other important documents.
10. The main cause of queuing problem is utility bills services provided equally to the customer or non customers. The problem can be fixed somehow by limiting this service only to customers. There can be several ways of discouraging non-customers from depositing utility bills. For example, removing the signboards, keeping limited time for acceptance and informally spreading the news that the bank does not accept the utility bills.
11. Sometime management impose penalty upon cash department due to their human errors, which should be, reduced at maximum possible level by keeping in consideration the element of humanity. The penalty is usually of financial nature. When there is cash shortage, which is a routine matter hence uncontrollable, the cashier are required to make good for the loss. This cause the great psychological pressure on cashiers. Either the loss should be born equally by all officers or transferred to “cash under / over account” in this case the loss will be born by the bank.
12. Cash department directly deals with cash, which is highly risky job so that handsome salaries should be given to them in order to increase their mental satisfaction and efficiency.
13. While appointing the employee in cash department, the management should contact with existing officer of the cash department in order to know that type of people they wants. And also experienced and honest person should be appointed by seeing his /her past record, conducting special behavioral tests and other techniques to identify person with sound integrity at the time of selection.
14. Sometime cash department needs immediately cash from SBP/NBP so its relation with them should be good and friendly. For this people in cash department should be reminded periodically the importance of having good relationship with officials of SBP and even customers.
15. At time of making payment to illiterate person cashier only see the thumb impression of the customer. He should also see the original ID card and photograph and obtain a photocopy of ID card of the customer in order to minimize the risk.
16. In the era of technology latest machine for counting should be provided to cash department.
17. Cashiers usually provided old currency note to ordinary customers and do favoritism in the use of new currency notes, which sometime cause complaints against the cash department. In this regard, favoritism should be controlled in order to motivate and retain the customers.
18. As the keys of safe are kept both by the manager and cashier, so it is necessary that both the person arrive at branch in time. However, manager of branch sometime come late and banks payments operations are effected. For this purpose, bank manager and cashier should be either local or reside near the bank or provide the pick and drop facility.
19. Modern and sophisticated weapons and training should be duly proved to guards for time to time.
20. There should be a security cell at the Head office consisting of one security officer for the bank, assisted by adequate staff. Adequacy to be determined on the basis of number of branches and the area covered. The in charge of the cell should review and streamline security means in the branches.
21. The security officer of the bank should be mobile. He should visit each branch at least once in a month to verify that the security arrangements at the branches are in order. He should ensure that the branches as laid down are observing security measures.
22. The following numbers should be display in the banking hall and in the manager’s cabin.
Emergency telephone numbers. Near Police station numbers SHO/SP concerned numbers both residence and office. Toll free number for any complains against branch to customers.23. Each branch should have alarm bell/siren with several switches according to the size of the branch. And especially for the cash feeding brunches, there should be a minimum of 4 concealed switches.
24. Audit or inspection team should check the inspection register during their visit, and recode their observation in the inspection report. The audit team should verify that the branches are observing the security measure.
8.3 IMPLEMENTTATION PLAN
I observed some problem at VM for which some of recommendations are given. I have conducted job analysis by using personal observation method & I have found that the bank is not having post of personal manager. Although, the manager is working as a partial personal but still the problems of many customers as well as employees are not solved because he is far away from the access of common customers and lower staff, mainly in main braches where ASP’s are working as managers. That’s why an increase has been occurred in the turnover ratio of trained employees and decreased in the customers.
I have made an action plan on the basis of some problems and recommendations. First I will identify the problems.
8.3.1 Problem
Customers as well as employees have no direct access to high level authority even to the manager in main branches, there is no decentralization and there is turn over ration is trained employees and also less satisfaction of the customers.
8.3.2 Recommendation
There should be one post of personnel manager in every branch who will only be concerned with the human affairs and will not be engaged in bank’s works.
8.3.3 Implementation Plan
The action will be like this that first of all the bank will make job description and job specification and then they will initially post an added; hire an employees on contract basis for two years in main and big branches. If it bore fruit then the post would be made permanent and the same post will be created in every branch. Advertisement should be given in all leading newspapers as well as on electronic media.
8.3.6 Job Description
It is a written statement which shows the responsibilities of the job holder and the procedures to be follows for achieving good results. A job description will include the job title, the duties to be performed, the distinguishing characteristics of the job, the authority and responsibilities of the job holder.
8.3.6 Job Specification
The job specification statement including the minimum acceptable qualifications of the person must possess to perform the job successfully. Job specification will identify the knowledge, skills, education, experience and abilities needed to the job effectively.
8.3.6 Advertisement Of The Job
JOB OPPORTUNITY
VASTMEDIA BANK LIMITED REQUIRED
S.NO JOB DESCRIPTION NO OF POST
1. Personal Manager 20
Officer Grade – 11.
QULIFICATION REQUIRED
o MBA degree with at least 305 CGPA.
o Good fluency in English, Urdu and Pashto.
o Computer knowledge at least office automation.
o Two years experience in the relevant field. Any how we give also equal opportunity for fresh graduate who have good academic record.
o All the posts are on contract basis (for two years.)
o We are encouraging the female.
Candidates meeting the above mentioned qualifications should make their applications along with testimonials and two passport size photograph are direct send to the;
Director HRM Department
44, Avenue Chowk Karachi.
Email: mailto:abl@pesonnel.pk
And applications should reach the office latest by March 31, 2007, applications received after the date will not consider. Test will be held on 10th of April, 2007.
8.3.7 Internal Recruitment
It means that organization’s own employees meeting the criteria should be promoted. Some benefits of internal recruitment are:
i. It builds morale in the staff.
ii. It encourages good individuals who are ambitions and hardworking.
iii. It improves the probability of good selection, since the information on the individual’s performances is readily available.
iv. It is less costly than going to hire the new employees.
8.3.8 External Recruitment
It means to recruit from outside of the organization. It will take more time as well as it is costly as compared to the recruitment process. Advertisement in the newspapers will only be given for the external recruitment. And recruitment follows these steps;
8.3.9 Initial Screening
It is the first step where the initial screening is dome of the applicants. Full details about the job are given to the candidate. Candidates having inadequate experience or education will be eliminated in this step.
8.3.10 Completion Of Application From
After screening the applications will be asked to complete the organization’s form. Information required may be in order of name, address, telephone numbers and qualifications. Lastly applicant required a signature attesting to the truthfulness of the given information.
8.3.11 Employment Test
After completion of forms, the applicants will be required to undergo a written test.
8.3.12 Comprehensive Interview
The interview is a selection device in which depth information about a candidate can be obtained. Applicants who pass the screening, application form and required test will go through a comprehensive interview.
8.3.13 Background Information
This step is related to the confirmation and verification of the information candidate has provided.
8.3.15 Medical Examination
This is the last step. This indicates that the applicant is physically fit for essential job performance.
After performing successfully in the preceding steps, candidate will now be considered to consider being eligible to receive an offer of employment. The human resources department will typically make an offer. And by this way, we will hire the applicant for the post.
8.3.15 RESULTS
With the implementation of this action plan, following results are expected.
i. Employees will become more polite and courteous with customers.
ii. Employees will become more careful due to the fare of punishment.
iii. Employees will become more hardworking and ambitious due to reward system.
iv. Job rotation problem will be solved. This will affected more positively i.e. the employees will become more sufficient and will work more effectively for gaining the experience in different departments rather than to become bore by working in one department for many years.
v. Communication system will be improved.
vi. Decentralization problem will be solved to same extent just due to access of every common customer and the lower level employee to the personnel officer.
vii. More customers will be attracted due to having great respect.
viii. The schedule transferring of low level employees will be finished.
It is expected that this action plan will be helpful in the problem solving of the VM and will improve VM condition and will make it a more popular, leading and profitable organization.
Summary
The objective of the bank is to provide special service to it customers, and to maintain the best standards. A system of checking and counter checking is in vogue bank but because this system is not enforced effectively as such. So there are complains from the customers. if the bank make action on this recommendation bank must increase their market shares.
CONCLUSION
During the last 50 years modern banking has emerged as a major business, banking has become a profession which every one is proud to join.
Vastmedia Bank Limited has started it business on a very small scale but now it is one of the leading operating in Pakistan
VM has improved a lot since its beginning it has expected it branch networked and its generating more and more business, people are satisfied with its services, yet there is always a room for improvement.
From the above report it is clear that VM has made tremendous improvement in its business, it has attracted large number of customers and its providing them with good quality services but yet it can make improvement by the considering the above mentioned recommendation and by acting on the Action plan, by doing so they will have good business and more and more people will be attracted towards it.
So far the bank is doing well but it needs to control its expenditures as far as possible, as it is said there is always a room for improvement.
BIBLIOGRAPHY
1. VM Head Office Notes 2002.
2. VM Operational Manual 2005, Peshawar
3. VM website http://www.abl.com.pk/
4. Account Manual 2005, general services division VM
5. Annual Report 2005 Karachi
6. D Cenzo A. David & Rabbis P. Stephen. (1996) Human Resources management New Yoke:
7. Griffin
8. Ibid
9. James Van Horne, John M. Wahoo Wizen 11th Edition, Fundamentals of Financial Management
10. Nasir A. Saeed, (2005). Money Banking & Finance. Faisalabad
11. Operational Manual 2005, Peshawar
12. Walt J.M. 11th edition, Organizational Management
13. Griffin
14. James Van Horne, John M. Wahoo Wizen 11th Edition, Fundamentals of Financial Management
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