24131000-Mcb-Bank-Ltd

MCB BANK LTD.

1.1 HISTORY AND BACKGROUND –

1.1.2 INTRODUCTION –

Over the years MCB has developed strong relationships with its customers by

understanding their needs and treating them with respect, dignity and importance. The

driving force behind its commitment and services is its focus on customers, ensuring that

it not only meets, but also exceeds their expectation.

They strive to achieve excellence by ensuring that every moment of their time is spent in

adding value, making sure that they do things right, first time, and every time. With the

quest of quality MCB has always taken initiatives bringing banking into a new arena;

from cash to the convenience of plastic; from branch banking to internet banking and

from face to face customer interaction to online accessibility.

It encourages diversity and treats each of its employees with fairness. It gives

constructive feedback for their continuous development and seeks suggestion from all

employees for further improvement. It ensures that quality performance is acknowledged

and rewarded and exercise utmost responsibility in decision making with regards to its

employees. Integrity of its employees is the strength of its performance.

MCB believe in achieving their mission and vision by working together as a combine

group. It treats its colleague as its internal customer and ensures that the requirements of

internal customer focus are always met. Equipped with in-depth product knowledge and

recognizing the strengths in each individual, It strive for optimum-results from its co-

workers and bringing out peak performances by working towards common goals and

objectives in today's dynamic banking environment.

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MCB BANK LTD.

MCB has an edge over other local banks, as it was the first privatized bank. The State

Bank of Pakistan has restricted the number of branches that can be opened by foreign

banks, an advantage that MCB capitalizes because of its extensive branch network.

Ten years after privatization, MCB is now in a consolidation stage designed to lock in the

gains made in recent years and prepare the groundwork for future growth. The bank has

restructured its asset portfolio and rationalized the cost structure in order to remain a

low cost producer.

MCB now focuses on three core businesses namely Corporate, Commercial and

Consumer Banking. Corporate clientele includes public sector companies as well as

large local and multi national concerns. MCB is also catering to the growing middle

class by providing new asset and liability products. The Bank provides 24 hour banking

convenience with the largest ATM network in Pakistan covering 30 cities with over 225

ATM locations. The Bank’s Rupee Traveler Cheques have been leaders for the past six

years and have recently launched their Gift Cheques Scheme.

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MCB BANK LTD.

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation

of over 50 years in Pakistan, with a network of over 900 branches, over 750 of which are

Automated Branches, over 225 MCB ATMs in 41 cities nationwide and a network of over

12 banks on the MNET ATM Switch.

MCB has become the only bank to receive the Euromoney award for the fourth time in

the last five years. MCB won the "Best Bank in Pakistan" in 2005, 2004, 2003, 2001, and

in 2000 the "Best Domestic Bank in Pakistan" awards. In addition, MCB also has the

distinction of winning the Asia Money 2005 & 2004 awards for being "The Best Domestic

Commercial Bank in Pakistan".

MCB offers a wide range of financial products and advice for Personal and Corporate

Customers. You can also apply on-line for many of our Online Services. Customers can

access their accounts using our simple and convenient MCB Virtual Internet Banking

services.

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http://www.mcb.com.pk/personal.htm

http://www.mcb.com.pk/aboutus/awards.htm

MCB BANK LTD.

NORMAL OPERATIONS OF THE BANK –

TIMINGS

MCB Bank follows the rules stated by The State Bank of Pakistan.

Bank Timings 9 am to 5 pm

Public Dealing 9 am to 5 pm

Friday 9am to 1pm – 3pm to 5pm

Saturday 9 am to 5pm

WORKING DAYS

Bank working days are six, from Monday to Saturday.

WORKING METHODS

MCB Bank follows computerized system they do follow manual system but to a very small

extent. They use a banking software program ‘SYMBOLS’ to run the bank's business

operations.

The Bank is implementing the full suite of the latest version of SYMBOLS Version 8.

Muslim Commercial Bank runs SYMBOLS e-Finance modules to deliver personalized

services to its customers over multiple delivery channels, while SYMBOLS Enterprise

Operations Center serves as its core banking transaction processing engine.

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MCB BANK LTD.

COMPETITORS –

National Bank of Pakistan

Bank Al falah

United Bank

Allied Bank of Pakistan

Citibank

Habib Bank Ltd.

Faysal Bank

Prime Commercial Bank

ABN Amro Bank

Saudi Pak Commercial Bank

Indus Bank

Soneri Bank

The Bank of Khyber

Bank of Punjab

Gulf Commercial Bank

Metropolitan Bank

Standard Chartered

Askari Bank

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MCB BANK LTD.

1.1.7 OBJECTIVES OF ORANIZATION –

The following are the objectives of Muslim Commercial Bank Limited.

CREATING AND MANAGING VALUES –

The first objective of Muslim Commercial Bank Limited is to create and mange the

values, which is one of the back bone of the objectives of any well organized and

managed organization.

HUMAN VALUES –

The second objective of Muslim Commercial Bank is to take care of the Human capital

which is a necessary thing for the development and prosperity of any well established

organization.

BEST PLACE TO WORK –

The third objective of Muslim Commercial Bank Limited is to make it a place which is

much feasible and comfortable for employees of the bank. The MCB is always conscious

in developing such place where employees of the bank feel easiness.

TECHNOLOGY –

The forth objective of Muslim Commercial Bank Limited is to bring new and latest

technology in the operations of the bank. At MCB, technology has a direct relation with

your needs; it is a means for creating value and convenience for the customer. Over the

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MCB BANK LTD.

last few years MCB has invested heavily into strengthening its technology backbone.

Today it is leading the way in banking technology and setting new standards for the

banking industry; penetrating into the local market, listening to the needs of the people

and educating them of simple financial products and services that create both value and

convenience. MCB’s strength lies in providing a technological base at the grass roots

level of the society with a challenge to educate and assimilate such systems across vast

cultural and economic backgrounds. With over 768 automated branches, 243 online

branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks

on the MNET ATM switch, MCB continuously innovate new products and services that

harness technology for the customer’s benefit.

UNDERSTANDING RELATIONSHIPS –

The fifth and very important objective of Muslim Commercial Bank Limited is to create

such an environment which is suitable for creating understanding and relationship

between the employees, thus going towards the way of development and prosperity. Over

the years, MCB has fostered strong bonds with its customers. Understands them; their

needs. They feel comfortable with MCB; it’s their bank; it responds to them; listens to

them; partners with them; grows with them. At MCB, banking is all about being there for

people, making a home in their hearts-continuously building relationships on mutual

trust and confidence. We understand that relationships are about expectations-our

products and services are based on your customers, expectations. Be it financing for

personal or business related needs, funds transfer and trade related facilities or need for

different types of deposit accounts, MCB offers you a variety of products and services

customized to satisfy your individual needs.

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MCB BANK LTD.

UNDERSTANDING CONVENIENCE –

The next objective of Muslim Commercial Bank Limited is to make understanding a

convenient thing for the whole environment of the bank, for the purpose of boosting up its

values and prosperity in such a competitive environment. Convenience is what the

customer is looking for; and this is what we at MCB are

continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM

network or the easy availability of financing requirements or simple opening of account,

MCB has tailored its products and services to make your life easier. MCB knows the

particular needs of its diverse customer base d continuously develop products and

services that fulfill these needs.

UNDERSTANDING RELIABILITY –

The last but not least objective of Muslim Commercial Bank Limited is to make an

environment which have an understanding of reliability in the whole structure of the

bank. With a strong financial base, a promising team and the right resources, MCB has

proved to be a reliable partner indeed. MCB understands the special needs of the

business, trading and agricultural sectors. Strategically located branches in small towns

and cities provide warm services and advice to the small businessmen and local traders.

MCB speaks their language; it understands their needs and provides tangible results. By

responding in a timely manner with a flexible approach, MCB provides its clients with

the reliable financial service and support they require to successfully achieve their

business objectives. With a solid foundation of over 50 years in Pakistan and having

recently completed 10 successful years of privatization, MCB is strongly positioned to

lead the banking sector in the new millennium. You can feel safe in our hands.

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MCB BANK LTD.

ORGANIZATIONAL STRUCTURE OF MCB BANK LTD –

As MCB is a banking company listed in stock exchange therefore it follows all the

legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman

& chief executive of the company with a team of 10 directors and 1 vice chairman to help

in the business control and strategy making for the company.

Operational Management of the bank is being handled by a team of 10 professionals.

This team is also headed by Mr. Muhammad Mansha. The different operational

departments are Consumer Banking & IT div; Financial & Inter branch div; Banking

operations div; HR & Legal div; financial control & Audit div; Credit management div;

Commercial Banking div; Corporate Banking div; Treasury management & FX Group

and lastly Special Assets Management (SAM) Group.

For effective handling of branches, it has been categorized into three segments with

different people handling each category. These categories are:

Corporate Banking

Commercial Banking

Consumer Banking

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MCB BANK LTD.

CORPORATE BANKING

These are branches, which have an exposure of over Rs. 100 million. Usually includes

multinational & public sector companies.

COMMERCIAL BANKING

The branches which has a credit exposure of less than Rs. 100 million but having a credit

portfolio of more than Rs. 20 million (excluding staff loans)

Usually branches in large markets and commercial areas come under this category.

CONSUMER BANKING

These are the branches that have exposure up to Rs. 20 million and these include all the

branches that are neither corporate nor commercial branches.

Recently the organizational structure was re-designed as follows:

PROVINCES WISE BRANCHES –

Corporate Consumer Commercial

20 branches 637 branches 383 branches

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MCB BANK LTD.

NUMBER OF BRANCHES IN DIFFERENT LOCALITIS –

Punjab 601

Sindh 217

NWFP 112

Baluchistan 35

Azad Kashmir 16

Domestic 981

Overseas 4

EPZ 1

Total 986

Among the four overseas branches three are located in Sri Lanka and one in Bahrain.

Furthermore, the bank has some proposals under consideration to open more brunches

in some European countries and as well as in Japan & china.

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MCB BANK LTD.

2.1.2 ORGANIZATIONAL STRUCTURE –

President

Group heads

Divisions and field

Circle offices

Regional offices

Branch offices

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MCB BANK LTD.

LINE OF BUSINESS (LOB) – ORGANIZATION

South Karachi Lahore East Karachi East

North Karachi Lahore West Karachi west

Faisalabad Karachi Central

Gujranwala Quetta

Abbotabad Bahawalpur

Sargodha Multan

Peshawar Hyderabad

Sukkur

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President and CEO

Group Head Corporate

Group Head Commercial

South

Group Head Commercial

North

General Manager/ General Manager/ General Manager/Circle Offices Circle Offices Circle Offices

Regional Managers/ Regional Managers/ Regional Managers/Regional Offices Regional Offices Regional Offices

MCB BANK LTD.

2.1.3 MANAGEMENT HIERARCHY –

Branch – Eden Centre

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Chief Manager

Operational Manager Credit Department

Clearing

Operation Officer

Cash Dept.(Chief cash)

Teller Teller

Deposits/withdrawals

Supervisor

MCB BANK LTD.

MAJOR PROBLEMS FACED BY THE EMPLOYEES/WORKERS ARE LISTED IN THE FOLLOWING:

1. The staff is being taken from the specific areas, linguistic priority, or

specific with business universities.

2. MCB conducts aptitude tests for entry level positions or for trainee

positions. HR department of EFL makes sure that they are conducting

these tests only in those universities, recommended by senior

management MCB

3. Not only this, reference of internal employee is considered very

essential. This makes the picture quite reversal when a candidate

fulfills all the criteria of job but does not have any reference in

company

4. After induction in company , a handsome amount and time is spent on

training of employees. And they are sent according to their education

background in specific departments.

5. Internal equity is somewhat not equalizing among all the employees.

Further, the percentile external equality is no maintained.

Considering Meezan bank and Askari as the competitors of

MCB , are giving better compensation

6. Non-Merit and biased staffing is creating a silent storm . In fact, few

months ago, strike of employees was also observed which was calmly

finished after negotiation between protestors and the management.

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MCB BANK LTD.

7. Since head office in Lahore are not too much in coordination, there

are many conflicts between them.

8. Due to these problems, employees are frustrated and they leave MCB

after a certain time period. Usually 2-3 years of experience, which is

a trainee period.

9. Due to this habit of new employees, succession planning is usually

delayed.

10.Employee relations are going to be worst peak, when only those

employees are considered for promotion who are having strong

reference or about them a call comes from head office.

11.Since succession planning is now 70-80 % withheld, MCB is offering

higher salary to retain the employees. But on other hand, they are not

focusing on starting point i.e. non-merit selection and consequently

bad employee relations.

12.Favoritism is given to employees. Those who are actively in touch

with the management for their appraisal, and makes good PR, are

considered more appropriate person for promotion. Although, some

line managers submit their feedback about certain employees, but

management insist to give some raise to in touch employees and hence

line managers also disturbed on this situation. This condition is very

much drastic as the deserving employees are frustrated and leave as

they find another good job.

13.Performance Management is present in MCB and employees are also

given workshops and lectures on required annual targets and ultimate

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MCB BANK LTD.

targets. Management usually conducts series of workshop for this

purpose. The main problem in performance management system is

involvement of linguistic lobby working on both ends

.

14.Promotions are considered as the back bone for growth and career of

any employee. In MCB promotions are given only to those employees

who fulfill the personal satisfaction of line managers. Obviously, line

managers have a vital role in promotions of employees. Those line

managers, who submit the extra ordinary feedback about employees,

are subject to present in front of performance appraisal committee to

justify their feedback. They are not only pressurized to take back this

feedback, but also they are threatened for their own promotion.

Consequently, line managers have to be kept silence during

performance appraisal program.

15.In this way, when employees are working hard for attaining goals of

company according to long term plan, and they are not promoted or

given appropriate compensation, they search for new job inside or

outside Pakistan.

16.Linguistic lobbies are 2nd major reason for MCB, who choose only

those candidates referred by Head office (Lahore) . Induction test,

followed by technical interviews held at MCB Karachi , are not

supported by Head office. Whenever line managers force headoffice to

conduct the HR activities in order to appraise the right candidate, it is

not simply rejected but just avoided to show that there is no any need.

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MCB BANK LTD.

On the other hand, it is miss documented and hence misjudged the

performance of employee and only based on feedback provided by

plant manager.

RECOMMENDATIONS –

Today the biggest challenge for banking industry in Pakistan is to retain existing

employee since various small banks are available and who are ready to hire the human

recourse of other bank and market comparative salaries also the raise given in annual

appraisal to existing staff is far less as compare to the raise a persona can get by joining

another organization there for after having a slight study of the banking industry and

specially Human recourse management in MCB bank Limited we have following

recommendation for the betterment of HR department

Working environment, equipment, furniture and staff dressing should be

according to the modern banking style.

Proper attention should be paid to the employs working at lower level

specially in branches

Employees should be given refresher courses.

The management should employ job rotation policy to retain the interest of the

employees in job.

hiring should be done through a professional HR department that is right

person for right Job

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MCB BANK LTD.

HR department usually hire over qualified for some routine work of clerical

staff that result in high employee turn over

ACTION PLAN

JOB ANALYSIS:

HR department should first hire a job analyst and perform job analysis of all

the employees working in the organization. This will help in identifying job

sizes and job descriptions and job specifications.

JOB EVALUATIONS:

Then they should evaluate what type of jobs their employees are performing

and what market is paying to them that are what would be the

compensations according to market level. This will help in designing

compensation packages at market level.

TRAIN THEIR MANAGERS:

Then they should identify the gaps in the performance of their line

managers, and train them, then they should do TNA (training needs

assessment) and should identify whether this training paid off or not. If for

eg: 7 out of 10 are still not performing properly, then that means there is a

problem from organizations side. Either it has not identified the gaps

properly, or not training them properly. If 1 or 2 of them still not perform

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properly, then they should be punished because they did not gain the

knowledge and wasted their time and company’s investment.

SHOULD DO PERFORMANCE MANAGEMENT QUARTERLY:

They should encourage their line managers to do performance management

quarterly, and give timely feedbacks to their sub-ordinates about his

performance. Also, identifies performance gaps and suggest trainings where

necessary. HR department should keep a complete track record themselves

about the performance of employees and should ask managers to keep the

record documented, so that they can show it to the employees where they

find them dissatisfied from their compensations.

REWARDS:

After measuring performance, those employees who deserves and have

performed well should receive compensations up to the mark. This creates

the satisfaction in employees and motivates them more, hence their

productivity increases. Rewards may be monetary or non-monetary. Job

enrichment, job enlargement can be done to make their work more

interesting.

MANAGERS AND MANAGEMENT SHOULD BE FAIR:

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MCB BANK LTD.

HR department and managers should be fair when distribute compensations.

There should be no favors given to their favorites. Rewards and

compensations should be given to those who deserve.

NEGOTIATIONS SHOULD BE ENCOURAGED:

Employees should be encouraged if they have any confusions or

dissatisfactions and if they want to discuss about their compensations. The

process should be fair, documented, maintained and transparent, so that if

they want to know the whole process they can be shown the details.

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MCB BANK LTD.

RECOMMENDATIONS –

Today the biggest challenge for banking industry in Pakistan is to retain

existing employee since various small banks are available and who are

ready to hire the human recourse of other bank and market comparative

salaries also the raise given in annual appraisal to existing staff is far less

as compare to the raise a persona can get by joining another organization

there for after having a slight study of the banking industry and specially

Human recourse management in MCB bank Limited we have following

recommendation for the betterment of HR department

Working environment, equipment, furniture and staff dressing

should be according to the modern banking style.

Proper attention should be paid to the employs working at lower

level specially in branches

Employees should be given refresher courses.

The management should employ job rotation policy to retain the

interest of the employees in job.

hiring should be done through a professional HR department that

is right person for right Job

HR department usually hire over qualified for some routine work

of clerical staff that result in high employee turn over

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MCB BANK LTD.

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24131000-Mcb-Bank-Ltd

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