TERM REPORT ON FOUR FUNCTIONS OF MANAGEMENT IN NIB BANK PAKISTAN.

PRESENTED TO: MR. AMIN RAJANI

PRESENTED BY: KAMRAN ISRAR KHAN WAQAS JAWAID EJAZ JAMEEL ALI AFRIDIPRESENTATION DATE: DECEMBER 26, 2009

ACKNOWLEDGEMENT

In the name of “Allah” the most beneficent and merciful who gave us strength and knowledge to complete this report. This report is a part of our course “Principles Of Management”. This has proved to be a great experience and learning for us. This report is a combined effort of Mr. Kamran Israr Khan, Ejaz Jameel, Waqas Jawaid, Ali Afridi.

We would like to express our gratitude to our Principles Of Management, teacher Mr. Amin Ranjani who gave us this opportunity to fulfill this report. We also would like to thanks our colleagues who participated in a focus group session. They gave us many helpful comments which helped us a lot in preparing this report.

We would like to thanks the Manager Operations of NIB Bank, Mr. Sarfaraz Bhojani who provided us a great deal of information and shared his valuable experiences. How they used the four functions of management in conducting their management operations of NIB Bank. 

COMPANY PROFILE

NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was incorporated in March 2003 as a public limited company.

In April 2004 the Pakistan operations of Credit Agricole Indosuez were also amalgamated with and into NIB.

In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments.

NIB Bank's vision is to rank amongst the top 5 banks in the country. Therefore towards the end of June 2007 it acquired majority shares of PICIC with the aim of merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited (PCBL) into NIB.

The legal merger of PICIC & PCBL into NIB took place on December 31, 2007

NIB has the highest paid up capital of Rs. 40.4 bn amongst all banks in Pakistan.

MISSION AND VISION

MISSION STATEMENT

 To improve the quality of life for millions

OUR CORE PURPOSE

Enabling success; Realizing dreams

OUR VISION

To be the most admired Financial Institution in Pakistan

OUR VALUES PASSION RESPECET INTEGRITY

FAIRNESS SCOPE

 

PLANNING IS THE ESSENCE OF MANAGEMENT

In regard of planning, by concerning some management employees we got to know few strategic goals that they are planning to achieve upon completion of the following five fiscal years as mentioned under. However we encountered a constraint in knowing there realistic goals as they need to keep it confidential due to management policies.

STRATEGIC GOALS

1. Increase in the numbers of TDR by 20%.2. Increasing the wealth of shareholders to Rs.5 per

share3. Injecting paid-up capital of 10bn. by issuing right

shares so that their accumulated paid up capital would be 50bn so this bank would retain its position as 1st largest bank in regard of paid up capital.

4. Introduction of credit cards in the upcoming span of years with facility of cash asaan revolving project.

5. Enhancing the branch network upto 275 branches all over Pakistan.

TACTICAL GOALS

As far as tactical goals are concern which second line managers are given with the targets in a meeting conducted by their relevant group heads some of which are mentioned below:

1. Sales Managers are given with the numbers of TDR’s they need to sell in accordance with the prescribed policies of the bank.

2. Branch Managers are given with the budgeted portfolio which they must need to achieve in order to sustain his branch feasible which will lead them to achieve their strategic goals of profitability as a whole.

OPERATIONAL GOALS

Operational goals are those goals which are set usually on the daily basis in banking sector. Eventually such goals that we observe upon our visit, is done by the operational staff who are indulge in carrying out banking operations on daily basis criteria. As per observations we came to know about some which are as under:

OPERATIONAL GOALS

1. Zeroization of clearing house on daily basis so they used to plan their cheque clearing process depending upon the number of cheque’s they received by NIFT in the morning on daily basis.

2. Checking and balancing vault opening and closing balance and plan how much cash should be shipped to SBP in order to avoid excess limit so that the branch need to bear the insurance cover charges. Thus cash management officers used to have their planning day-to-day basis.

ORGANIZINGThe hierarchy of NIB Bank is as follows

PRESIDENT

EBG

REGIONAL HEADS

AREA MANAGERS

PORTFOLIO MANAGERS

PORTFOLI

O OFFICERS

INTERNAL AUDIT

SENIOR AUDITOR

S

AUDIT OFFICE

RS

CFO

UNIT HEADS

FINANCE MANAGE

RS

ASST. FINANC

E MANAG

ERS

FINANCE OFFICER

S

CSEG

REGIONAL HEADS

AREA MANAGERS

PORTFOLIO MANAGERS

PORTFOLI

O OFFICERS

HCOG

HEAD OF REWARD

S

HEAD OF RECRUIT

MENT

HR OFFICERS

IT

PROJECT MANAGE

RS

ROJECT & IT

SUPPORT OFFICERS

ORGANIZING

CENTRALIZATION / DECENTRALIZATION

In NIB Bank they usually follow tall structure and most of the decisions are being made by upper management, but at

the middle management and below level they follow the decentralized approach for decision making process as well. Basically they use a mixture of both.

ORGANIZING

TEAM STYLE The observation of different departments

confirms that NIB believes in the Vertical Team Style which comprises of a Unit Head with his or her subordinates in the formal chain of command.

VIRTUAL TEAM NIB has a very spreaded branch network

nationwide which eventually compel them to make the virtual teams as they have members in different branches of different cities, so it is hard for them to have them on one platform, resulting is the creation of virtual teams.

LEADING

JOB SATISFACTION One of the most important aspect for any employee is to

make sure regarding his job satisfaction. On asking about the job satisfaction for employees, we came to know that in NIB, they have very satisfied employees as they follow bi-yearly appraisals and yearly Job Enrichment(if supported by the appraisals) which eventually make the employees more motivated that their efforts don’t end in smoke. ORGANIZATIONAL COMMITMENT

NIB is found to be very true with their commitments with employees. They said “if you want to lead the people, you have to deliver what you have committed”. They believe to fulfill the commitment is one of the most admiring tool Leading the people

   

LEADING

REWARDS NIB believes one of the

attracting tool in Leading to motivate the employees is to Reward the employees. Employees are given rewards instantly in terms of cash, any valuables, gift hampers, upcountry tours, pat on the back and many more.

CONTROLLING

As far as controlling is concern, we argued with the management that they don’t follow any subsequent procedures for controlling the activities on monthly or quarterly basis which needs to be taken into account for effective controls, but the way they uses to assess the performance and controlling the assigned activities is on bi-yearly basis and by asking the managers to fill up pre-disclosed form named PROJECT EVALUATION REPORT. In the said report each individual manager used to fill up with the budgeted targets they got from higher management up to a certain course of time and actually how far they have achieved them. Thus by this report they came to know about the loopholes if the GAP analysis is higher to certain extent.

….. contd.

CONTROLLING

Another example that we heard from admin and operations group head that they along with their external support and inspection team used to visit the site periodically without any intimation to that particular assignee of the project.

Further Audit, Internal control unit and Master control unit are assigned a job to ensure the financial statements are showing true and fair value and its free from any misinterpretation which could lead the stakeholders to wrong direction. However these are pre-requisites of Corporate Governance Act 1954 as well.

….. contd

CONTROLLING

Once, a manager of main branch named Mr.Yasir Bachani said that they apply the controls as per SPAMSOAP:

Segregation of Duties Physical Control Authorization Management Supervision Organization Arithmetic & accounting Personnel The conclusion for this segment is that different departments

of NIB use their own way of controlling their respective units, however the results will always be same i.e. to achieve the Strategic Goals of the organization.

THANKS