Muslim Commercial Bank (Internship) 2 Chapter -6

Chapter – 6

HUMAN RESOURCE MANAGEMENT

"Human resource department is concerned with the staffing, training, development, motivation and maintenance of the employees” This department is also called staff administration and is of much greater importance. It coordinated the various activities performed by different workers. It facilitates the smooth running of an organization. Its main objectives are as follow:

1. The attraction of employees
2. The retention of employees
3. The development of their personalities and minds

HRM is needed in making suitable policies. It present, these policies before committee for discussion and approval. It deals with following personnel matter:

1. Selection & Recruitment Policy.
2. Employee training and development program.
3. Performance appraisal of employment
4. Benefit Schemes.

MCB places great importance on human resource management and for this purpose Human Resource Development Division had been established. The major functions performed by the HRD are as follows:

6.1 Selection & Recruitment Policy:

“Recruitment is the process of discovering potential candidates for actual or anticipated organizational vacancies or from another perspective, it is linking activity, bringing together those with jobs to fill & those seeking jobs.”

It is of vital importance in a sense that if a non-deserving or a wrong person selected who is not fit for that job, then he will become a permanent loss to the organization. Therefore, selection of a right person for the right job at the right time is of vital importance. It has some basic requirements:

ü      Candidate must be a citizen of Pakistan

ü      He/She must be a business graduate, and

ü      He/She should have attained the age of 18 years but not exceeded the age of 35 years.

Procedure:

There are certain steps involved in the procedure in recruiting to MCB 21. They are:

• Applications are invited from candidates on prescribed forms against the vacant posts advertised in the newspapers.

• Application forms received are scrutinized and eligible candidates are called for written test. Test is conducted in four subjects, i.e. English, Computer, General Knowledge and Mathematics.

• Candidates who qualify the written test are called for interview. Interviews are held at GM office.

• After that the candidates have to undergo a medical check up by the prescribed doctor.

• Appointment letters are sent to the selected candidates, who have to present themselves before the Head Office for signing the following documents.

1. Bank Secrecy. Bond
2. Security Bond
3. Service Agreement Bond.

Appointed candidates are kept on probation for 9 months. They are sent for a 9-

• months pre-service training lo the Staff College.
• On the successful completion of the training programme they are appointed as officers grade- III.

6.2 Employees Training and Development Program:

“Training & development specialist are responsible for counseling employees helping them to make better choices about their caress and finding ways to achieve the desired goals”.

Training plays an important role in an administration is to improve the performance and level of efficiency of employees to enhance the knowledge. The training program of MCB is as follows:

1. Pre-service training
2. In-service training

i. Pre-Service Training:

Immediately after the selection of employees this type of training is given. Duration of pre-services training period is of six months. In such a training operational practice and banking operational disciplinary courses are brought.

ii. In- Service Training:

The in-service training period time duration to the employees during the service is of three months. This sort of training helps in introducing them to the latest teaching and methods of business.

6.3 Promotion:

Promotion refers to a change or movement of an employee in vertical direction involving greater responsibility and authority and also an increase in salary, better service conditions, and position and rank 23. The purpose behind a promotion policy is to attract and retain qualified people, promote job satisfaction, recognize better performance and motivate the employees.

As for as the promotion policy of MCB is concerned, it is solely based on seniority. Officers are promoted to higher grades after having fulfilled the minimum experience required for the grade. Minimum experience required for promotion to various grades is as under:

Promotion                              Minimum Experience

OG-III to OG-II                                 5Years

OG-II to OG-I                                                4Years

OG-I to A VP                                     3 years in the grade and minimum 8 years banking experience.

A VP to VP                                        3 years in the grade and minimum 10 years banking experience

VP to SVP                                          3 years in the grade and minimum 13 years banking experience

SVP to EVP                                        3 years in the grade and minimum 16 years banking experience.

EVP to SEVP                                     3 years in the grade and minimum 19 years banking experience.

6.4 Performance Appraisal of employees:

For the evaluation of the performance of the employees, the bank takes the following steps.

i.	Audit Report
ii.	Inspection
iii.	Sanction

i. Audit Report:

This report is prepared by the auditors of the bank every year & it emphasis on management business transaction functions. This audit report indicates the yearly performance of every worker.

ii. Inspection:

A team is selected by headquarter. Then teams inspect the performance of the branch. The member of these teams also contracts the clients, of the bank and inquires about the performance of the bank.

3. Sanction:

In this, a case punishment is awarded to the employee of misconduct or bad performance. Stopping promotion and business like actions are taken.

6.5 SALARIES & WAGES:

The employees of MCB are entitled to the pay of the grade to which they are appointed. The Executive Board will determine the various scales of pay for the employees.

6.6 FRINGE BENEFITS:

Fringe benefits are given to the employees in addition to their regular salaries, These include all expenditure designed to benefit employees over and above regular basic pay and direct compensation related to output.

Employees of MCB shall be eligible to:

o       Residential Facility

o       Medical Facility

o       House Building, Motor Car, Motor Cycle

Besides, the Bank offers attractive increments for higher qualification in the following way:

a.       BA                  Two Increments

b.      MA                  Three Increments

c.       IBP-I               Two Increments or 60,000 cash prize

d.      IBP-II             Three Increments or 100,000 cash prize.

1.7  LEAVE POLICY:

According to the leave policy of the Bank following types of leaves may be granted to employees:

1. Leave on full pay:

The maximum period of leave on full pay, that may be granted at one time, be as follows:

o       Without medical Certificate               120 days

o       With medical Certificate                     180 days.

2. Leave on half pay:

There is no limit on the grant of leave on half pay.

6.8 TERMINATION:

The employees of MCB can be terminated in the following three ways:

-           An employee shall retire from service if:

1. He/She has completed 30 years of service in the Bank, or
2. He/She has attained the age of 58 years.

-     An employee may offer his/her resignation by giving written notice. This notice must be given three months before in case of officers and one moth before incase of clerical and non-clerical staff.

-     An employee may be dismissed from service if charges against him/her proved after conduct of enquiry.