Hrm Meezan vs Summit Bank

Human Resource ManagementAppraisal and Compensation

Meezan Bank vs Summit Bank

Presented By : M. Haseeb Iqbal (60163)M. Usman Aziz (60164)

Presented To: Sir Saeed Ahmed

TABLE OF CONTENTS

1. Introduction 2. Vision & Mission Statement 3. Performance Appraisal 4. Compensation & Benefits 5. Leave Policy 6. Medical Policy 7. Staff Loan Policy 8. Staff House Finance

INTRODUCTION The mission of the Human Resource Department is to serve as the link between

prospective employees and the institution in an attempt to recruit and hire the most qualified individuals, without regard to race, age, sex, or disability, for any position vacancy within the Organization. The department also acts as a liaison between the institution and the employee to inform, motivate, educate, and train in all matters relating to employment and employee benefits.

In this project we have analyzed some HRM policies of 2 different banks. Although purpose is same but a significant amount of difference can be observed in HR policies being practiced by them.

(a) Meezan Islamic Bank

(b) Summit Bank

VISSION AND MISSION STATEMENT OF Meezan Bank Ltd.

Vision Statement

Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankind.

Mission Statement

To be a premier Islamic bank, offering a one-stop shop for innovative value added products and services to our customers within the bounds of Shariah, while optimizing stakeholders value through an organizational culture based on learning, fairness, respect for individual enterprise and performance.

VISSION AND MISSION STATEMENT OF Summit Bank Ltd.

Vision StatementTo be the preferred provider of financial products & services to the markets

Mission Statement To be a financial institution based on Trust, Integrity, and Good Governance To deliver financial solutions to our customers To provide equal opportunities & professional working environment to our staff To provide fair return to our shareholders on their investment To serve the community at large To discharge corporate social responsibility

PERFORMANCE MANAGEMENT POLICY

Meezan bank Summit Bank

PERFORMANCE MANAGEMENT

Meezan Bank Limited’s performance appraisal system is improved and upgraded from time-to-time in-line with the Bank’s requirements, as well as with industry practices.

A review, covering the period from 1 January to 31 December, will be made each year to assess the performance of each staff members who have been confirmed in their appointments.

OBJECTIVES OF PERFORMANCE APPRAISAL

a. Improving the performance of the Bank and its staff members;b. Laying a solid foundation for relationships between staff and management;c. Clarifying performance targets for all;d. Using the process for career planning and professional development of staff;e. Review of salary, assignment and career path;f. Award of bonuses

a) Work accomplishments and achievements;b) Competencies and behavioral standards;c) Progress in achieving the learning and development plan; andd) Future learning and development plans.


Grading There is no define %age of appraisal

(Far Exceed Expectation) Up to 10%(Exceed Expectation) Up to 15%(Meet Expectation) 55%(Below Expectation)

15%(Far Below Expectation) 5%

PROMOTIONPerformance appraisal is an interactive exchange between the immediate supervisor and staff member(s) reporting to him/her. The Branch Managers and Department Heads will bear the ultimate responsibility for successful completion of the exercise.

Promotion will be recommended by the Immediate Supervisor of an staff, concurred in by the respective Divisional Head and Head of HR and approved by the Approving Authority.

PERFORMANCE MANAGEMENT POLICY

1. Compensation & BenefitsEmployee compensation & benefits may be the:- Single most vital aspect of business Its a reward to its employees in exchange for their services Most important factor in attracting and retaining quality

employeesThe most common forms of cash compensation are Monthly salary, commissions, performance linked incentives,

bonuses based on the performance, equity in the form of stock options & other fringe benefits.

In addition business also provide Group benefits Group insurance, medical, dental, flexible healthcare

spending accounts, disability insurance, retirement benefits, sick days, vacation time etc

Compensation & benefitsMeezan Bank Summit Bank

Advance salary

Meezan Bank is offering facility of advance salary to its employees but only in emergent cases.

SMBL Bank staff are also allowed to get salary of current month in advance in case of any emergency/ urgent requirement..

Income Tax

Liability

Employees are personally responsible for preparation/submission of their personal income tax and other statutory dues. The Meezan Bank undertakes no responsibility.

On the other hand SMBL will deduct income tax at source from the staff member’s salary and pay directly to the authorities concerned.

Pay Scale

The pay scale of Meezan Bank has been developed incorporating feedback from a banking industry salary survey.

SMBL's Salary determinants are based on market data and on accepted relativities with the market.

Performance

Bonus-

In addition SMBL is offering performance bonuses :-Far Exceed Expectation (FEE) : 6 Basic salariesExceed Expectation (EE) : 4 Basic salaries

Compensation & benefits

Meezan Bank Summit Bank

Spot cash -

Spot cash for an exceptional performance will also be awarded upon discretion of President & CEO.

Salary Structur

e

Gross salary of SMBL is composed of the following components:

(a) Basic Salary is 55% of gross salary.(b) Allowances are 45% of gross salary.

Basic House Rent Utilities

Basic Salary

45 % of Basic

10 % of Basic

Medical Allowances

Gross Salary

10 % of Basic

16.67 % of Basic Gross

Salary

Medical policy (Meezan bank) The Bank recognizes the importance of medical assistance benefits that give the peace

of mind to an individuals. The medical benefit is of two types;

ELIGIBILITY SCOPE

OUT-PATIENT-The out-patient coverage is as per the following;

Employees in grade of SEVP I & above are entitled to claim outpatient medical reimbursement on actual basis for medical treatment in Pakistan

• Consultation charges of a registered medical practitioner

• Expenses of Dental, ENT or Eye testing charges

HOSPITALIZATION-Meezan Bank has instituted hospitalization and maternity benefit plans for all regular & contract employees through health Takaful operator

All regular and contract employees up to the age of sixty five (65) years and their immediate family members are eligible to benefits under this policy.

Hospitalization due to sickness or accidental injury is covered, on the recommendation of a registered medical practitioner.

Medical policy (Meezan bank)


MATERNITY BENEFIT Covers all ante-natal, childbirth (delivery) and post-natal treatment for the mother when admitted as a registered in-patient to a hospital.

Covers all ante-natal, childbirth (delivery) and post-natal treatment for the mother when admitted as a registered in-patient to a hospital.

REIMBURSEMENT PROCESS

Takaful operator will reimburse all reasonable and customary charges under this scheme for medical necessary services utilized outside at Panel/ Non-Panel hospitals.

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Medical policy (Summit Bank) It is SMBL’s policy to make available a medical plan of group medical insurance coverage

for staff and their eligible dependents.

ELIGIBILITY All regular and contractual staff up to the age of 60 years and their following dependents will be covered under this policy.

a) Spouseb) Sonc) Daughterd) Disabled Childrene) Other Person (Granted by SMBL through their terms of employment)

PREMIUMS The Medical Policy is fully subsidized by SMBL and staff members are not required to contribute to the limits set for the outpatient treatment or contribute towards the insurance premiums.

Leave Policy of Meezan Bank Ltd. How to apply ? – All types of leaves to be applied through HRMS Leave w/o Pay – on approval by President & CEO.

Number of Leaves : Paid Leaves ( P/L) – 30 days Sick Leaves – 8 days Hajj/ Umrah Leaves – 15 days Maternity – 45 days

Other Benefits : Accumulation of leaves upto 45 Leave encashment upto 45.

Leave Policy of Summit Bank Ltd. How to apply ? – through HR portal and through email.

Number of Leaves : P/L – 22 working days Casual Leaves – 10 days – ( Medical certificate is must ) Sick Leave – 8 days Maternity – 60 days MissCarriage Leave – 15 Calender days Hajj / Umrah – 30 days

Other Benefits : Accumulation of leaves upto 45 Leave encashment upto 45.

Leave Policy of Summit Bank Ltd.Leave w/o Pay – exceptional circumsatnces, but not limited to; Educational Purpose Other Exigencies

Mandatory Leaves The staff must avail at least 15 calendar days

continuous leave from the available privilege leave balance during a calendar year.


MANDATORY LEAVES The staff must avail at least 15 calendar days continuous leave from the available privilege leave balance during a calendar year.

The staff must avail at least 15 calendar days continuous leave from the available privilege leave balance during a calendar year.

Leave policy (GENERAL)

Mezan Bank Summit Bank

HAJJ/ RELIGIOUS PILGRIMAGE LEAVE

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• All Regular and Contractual staff members subject to completion of minimum 2 years uninterrupted service with SMBL are entitled for 30 working days with full pay Hajj/Religious Pilgrimage Leave.

• Upon fulfilling the criteria of two years service with SMBL, one month salary equivalent to salary when leaves were availed will be paid.

a) Muslim Staff For performing Hajjb) Non-Muslim Staff For any religious pilgrimage



EXTRAORDINARY SICK LEAVE (ESL)

In case of prolonged / serious illness including conditions arising from an accident etc, the staff may be allowed maximum 60 calendar days Extraordinary Sick Leave subject to management discretion.

In case of prolonged / serious illness including conditions arising from an accident etc, the staff may be allowed maximum 60 calendar days Extraordinary Sick Leave subject to management discretion.

LEAVE WITHOUT PAY (LWOP)

Leave without pay is not a matter of right but may be considered in exceptional circumstances such as, but not limited to: a) Educational Purposeb) Other Exigencies

Leave without pay is not a matter of right but may be considered in exceptional circumstances such as, but not limited to: a) Educational Purposeb) Other Exigencies



MATERNITY LEAVE (ML)

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• All married regular and contractual female staff subject to completion of six months service with SMBL.

• They are entitled for maximum 60 calendar days with full pay ML up to two confinements during the entire service with SMBL.

MISCARRIAGE LEAVE (MCL) -

All married members are entitled for 15 calendar days with full pay MCL up to two confinements during the entire service with SMBL.



PURPOSEPurpose of this policy is to make available different loans to staff at subsidized rates tomeet their needs. It includes house loan to assist staff members to own or renovatereal estate property, car loan to purchase a car and personal loan to fulfill theirpersonal needs.

To assist staff members to purchase, construct and renovate own residential real estate property.

TYPES OF LOANS Only house loan. Personal Loan

Vehicle Loan

House Loan

Staff Loan Policy


PERSONAL LOANPersonal loan policy is not provided to their employees.

To provide financial support to staff in their financial exigencies. Personal loan facility is available to all regular & confirmed with minimum one year service with SMBL.

VEHICLE LOAN Personal loan policy is not provided to their employees.

Facilitate its staff to help them cope up their transport problems, and improve their lifestyle standards. All regular & confirmed with minimum service of one year with SMBL, who have not been provided monthly car allowance. Five years.

Staff Loan Policy


HOUSE FINANCING MBL offers House Financing for its staff to own a residential propertyTotal outstanding House Finance should be adjusted within 20 Years from the date of disbursement or before the age of retirement whichever is earlier. Regular installments shall be recovered from the monthly salary of the staff. In case of enhancement / change of security, the tenure will be counted from the date of last disbursement under any mode of staff housing finance.

To assist staff members to purchase, construct and renovate own residential real estate property.House loan is available to all regular and confirmed staff with previous minimum three years service experience and at least one year service in SMBL. New staff with no previous work experience will be entitled to House Loan only after completion of minimum 3 years service with SMBL.

Staff Loan Policy

Hrm Meezan vs Summit Bank

Business

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