Muslim Commercial Bank (Projec t)

Chapter-9

FINDINGS AND RECOMMENDATIONS

After critically analyzing both the operations and financial date of Muslim Commercial Bank, let me summarize the finding s and recommendations of the report.

The findings and recommendations of the report are as follows:

The overall performance of MCB in terms of profitability and growth has been declining over the past few years. The reasons responsible for the poor performance of MCB are stuck-up loans, over-expenditure and unstable political environment within the country. In order to survive and grow in intense competition, the Bank should pay more and more attention to “Business Development” Business development means policies and programmes to promote the marketing of tangible goods and intangible services for profit, growth and survival.

In most of the cases market research and analysis is not carried out. Projects are launched with pre-conceived ideas, based on personal judgments and guesses. This leads to:

1. Incorrect target and size of market and thus incorrect strategies.
2. Incorrect sales forecast.
3. Under or over funds/resource deployment.

In order to avoid the consequences of these mistakes, it is very essential for the Bank to carry out a detailed market research/analysis and prepare a new product plan before launching any venture or expansion plan.

There are too many rules and regulations within the organization and the formalization of rules and regulations and procedures is also relatively high. This has adversely affected the performance of the employees. It is, therefore, recommended that the systems and procedures must be dynamic, flexible and subject to continuous monitoring and evaluation. This is very important task as the objective of the systems must be to facilitate the functions and achieve the desired results. Thus the changes must be made and improvements done.

The performance appraisal system is ineffective as it fails to measure the output and productivity of the employees periodically and numerically. The standardized work system has been little used to determine the output of the unit work. Therefore, the performance appraisal system should be improved.

The selection and recruitment of employees is not done on merit. The recruitment process suffers from serious drawbacks. There is no concept of job description. For recruiting competent employees, hiring process and job description should be modified and improved. One of the cost-effective methods to select competent employees is to offer internship programmes to graduates from business and management schools.

There exist short-term relationships between the banker and the customer. The organizational strategy is to get more and more customer s and in the process, the old customers are lost. It has been observed that lost. It has been observed that new customer costs five times more than the old customer. It is therefore, recommended to retain the old customers and maintain a customer base, which is fully satisfied so that it base, which is fully satisfied so that it becomes a source of addition.