SS

SUBJECT:

NBP ORGANIZATION STRUCTURE

PRESENTED TO :

MISS HINA GILL

SEMESTER: 1TH SEMESTER

SUPERIOR UNIVERSITY, SHAHDARA CAMPUS,

PRESENTATED BY:

ALI HUSNAIN

GULFAM SLAMAT

MALIK SHARIQ

HAFIZ MUHAMMAD ASAD

BANK PROFILE

NBP established in 9 Nov 1949, initially

with the objective for the growth of jute

trading. Its headquarter is located in

Karachi. It is a commercial recognized

Bank, provide loan, credit card, saving

and consumer banking services.

INTRODUCTION:National Bank of Pakistan is the largest commercial

bank operating in Pakistan and overseas. The Bank's

services are available to individuals, corporate entities and

government.

its business portfolio is a major lead player in the

debt equity market,

corporate investment banking,

retail and consumer banking,

agricultural financing,

treasury services

NBP headquarter in Karachi, Pakistan with over 1,254 branches country wide.

Participating in "World Bank" and "Asian Development Bank's" lines of credit.

It provide agency services to the public on the behalf of Govt. of Pakistan.

Govt. of Pakistan and SBP has 75.65% in the NBP.

It has 1283 branches within the Pakistan along with 29 regional offices.

VISION:"To be recognized as a leader and a brand synonymous with trust, highest standards of service quality, international best practices and social responsibility."

MISSION:NBP will aspire to the values that make NBP truly the Nation’s Bank, by:Institutionalizing a merit and performance culture. Creating a distinctive brand identity by providing the highest standards of services Adopting the best international management practices.

OVER VIEW OF THE ORGANIZATION:

GOAL OF NBP ORGANIZATION GOALS: To enhance profitability and

maximization of NBP share through increasing leverage of existing customer base and diversified

range of products.

Excellence in Direction

Excellence in Growth

Excellence in Performance

Excellence in Management

Excellence in Achievement

CORPORATE & INVESTMENT BANKING GROUP

CORPORATE & INVESTMENT BANKING GROUP

CREDIT MANAGEMEN

T GROUP

CREDIT MANAGEMEN

T GROUP

AUDIT & INSPECTION GROUP

AUDIT & INSPECTION GROUP

COMPLIANCE GROUP

COMPLIANCE GROUP

PRESIDENT’S

SECRETARIAT

PRESIDENT’S

SECRETARIAT

BOARD OF DIRECTORBOARD OF DIRECTOR

HRM & ADMINSTRATIO

N GROUP

HRM & ADMINSTRATIO

N GROUP

OPERATION GROUP

OPERATION GROUP

COMMERCIAL & RETAIL BANKING GROUP

COMMERCIAL & RETAIL BANKING GROUP

TREASURY MANGEMEN

T GROUP

TREASURY MANGEMEN

T GROUP

SPECIAL ASSET

MANAGEMENT GROUP

SPECIAL ASSET

MANAGEMENT GROUP

Overseas Management

Group

Overseas Management

GroupI.T. GROUPI.T. GROUP

SECRETARY BOARD OF DIRECTOR

SECRETARY BOARD OF DIRECTOR

CHAIRMAN & PRESIDENT

ORGANIZATIONAL STRUCTURE:

NBP Head Office ORGANIZATION HEIRARCHY

ORGANIZATIONAL NETWORK:BRANCH NETWORK:-10 Groups headed by SEVPs/EVPs. 9 Regions reporting to as many Regional Chiefs and 15 Single Branch Zones headed by Zonal Chiefs; 12 corporate branches and 1,254 domestic branches headed by Branch Managers control its field operations.

GLOBAL NETWORK:- 18 Oversea Branches5 Representative Offices1 overseas Subsidiaries Joint Venture.

DOMESTIC NETWORK:-1254 Domestic Branches6 domestic Subsidiaries 29 domestic regional offices DOMESTIC SUBSDIARIES:NBP Capital Ltd.Taurus Securities Ltd.NBP Exchange Company LtdNational Agricultural and Storage company Ltd.Cast – N- Link Products Ltd

DEPARTMENTALIZATION:

COMMERCIAL & RETAILING

DEPARTMENT

COMMERCIAL & RETAILING

DEPARTMENT

ACCOUNTS DEPARTMENT

ACCOUNTS DEPARTMENT

GOVERNMENT DEPARTMENT

GOVERNMENT DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

CREDIT AND ADVANCE DEPARTMENT

CREDIT AND ADVANCE DEPARTMENTGENERAL BANKING

DEPARTMENTGENERAL BANKING

DEPARTMENT

NBP DEPARTMENTS

1. GENERAL BANKING DEPARTMENT:

General banking involves the following sections:

•Deposit Section•Accounts Opening Section•Cash dealing Section•Clearance Section•Remittance Section•Lockers Handling Section

BRANCH HIERARCHY

1 DEPOSIT SECTION:-DEPOSITDEPOSIT

Checking DEPOSIT Accounts

Non-Checking Accounts

PLS Saving Account

PLS TDR’s

Current Deposit Accounts

NIDA

Special Notice Deposit

Accounts

Foreign Currency Accounts

There are two broad categories of deposits. These are1. Time deposit 2. Demand deposit

TYPES OF ACCOUNT/ DEPOSIT:-Following types of accounts are open in NBP•Current or demand account •Saving account •Fixed account•Call Deposit Accounts •Foreign Currency Accounts

2 ACCOUNT OPENING SECTION:- This section performs the following functions:•Opening of Accounts•Issuance of cheque books•Closing of accounts

3 LOCKER SERVICE SECTION:- There are four types of locker depending upon the size of lockers operate in banks.•Small size locker •Medium size locker •Large size locker •Extra large size locker

4 CASH DEALING SERVICES:-

•Cash receipts for receive deposits.•Cash payment for encashment of cheques.

5 CLEARING SECTION:-

•Local Clearing, •Short Credit Service, •Local Short Credit and •Inter City

CLEARING PROCESS:

•Inward Clearing.•Outward Clearing .

6 REMITTANCE SECTION:-

•Pay Order. •Mail Transfer .•Demand Draft.•Telegraphic Transfer.

2. ADVANCE DEPARTMENT:

TYPES OF ADVANCES:DEMAND FINANCE:CASH FINANCE:RUNNING FINANCE:LOANS:

TYPES OF LOAN:The credit department of NBP has providing the following types of loans•Short term loans •Long term loans •Working capital loan•Syndicate (project) loan

3. ACCOUNTS DEPARTMENT: The main function of account department of NBP is to maintain general ledger accounts and after the business hours the function of the account officer is to close books.

1)   ROUTING OF EXPENSE VOUCHERS:-

VOUCHER SYSTEM: Voucher is a system, which is generally designed to provide strong internal control over the transaction, In bank two vouchers are used DEBIT VOUCHER CREDIT VOUCHER

2. PREPARATION OF DAILY ACTIVITY REPORTS:-

The main function of this department is to check daily transactions whether cash, transfer of payments, billing, and clearing of all the departments. It includes the details of the following:•Loan transactions.•general ledger transactions•Foreign currency related transactions.•Fixed deposits transactions. 3. PREPARATION OF WEEKLY AND MONTHLY STATEMENTS:

Second major function of accounts department is the preparation of various statements. These statements are:A. WEEKLY STATEMENTSB. MONTHLY STATEMENTS

4. PREPARATION OF TAX PURPOSE STATEMENTS:

The department also prepares two statements for the purpose of paying tax on monthly and annual basis.

DECISION MAKING IN NBP NBP upper management participates the lower

management for the preparation of rules, policies and procedures.

The lower management participate with the upper management as a representative of the operating staff and put up their issues before them.

The NBP organization has centralization as well as decentralization approaches in decision making.

Some decision are made only by the upper level of management and implemented through the branch manager. While in daily routine matters and environment the branch manager get suggestion from the operating staff and then takes decisions.

ORGANIZATIONAL CULTURE The NBP has low formalized jobs.

Employees are not bound to come in special uniform, timing and to use a specific language & gestures during the office working. They have right to perform their jobs as they feel convenience to perform them. But they are liable to perform their assigned jobs' tasks in accordance with the determined polices and procedures.

MANAGER ROLE IN CONTROLLING THE ORGANIZATION PERFORMANCE The Manager in NBP has rights to overseas

the performance of the operating staff and to control them according to rules and polices. Therefore, he assignee duties to the subordinate according to their skills level, provide them skills through jobs rotation, calls meeting for providing necessary instructions to them, take corrective measures where find deviation from the standard level. The operating staff is responsible to follow the instruction of the Manger. Otherwise the can take disciplinary action against them.

HOW MANAGER RESOLVE CONFLICTS, WHAT PROBLEM FACE DURING THE IMPLEMENTATION OF NEW RULES

Manager act as a conflict handler, he identify the problem that arise the conflicts then listen the issues from both parties and settle down the problem by creating win-win situation.

Some time in implementation of new rules and procedures some sort of problem arise. In this situation the manager call a meeting and provide awareness to the operating staff about new procedures and polies and their course of action. Listen their problem in adopting the new procedures. And provide them facilities which are required for the implementation of these new procedures.

REMARKS ABOUT THE RIGHT ORGANIZATION ENVIRONMENT.

Democratic style is the best for the NBP

organization. Because it develop friendly

environment between the manager and

employee and their relation grow up

positively. Employee perform their tasks

without any pressure and disturbance.

Resultantly, their effectiveness and

efficiency boost up highly.

HOW THE NBP ORGANIZATION PROMOTE TEAM WORK

Through creating connectivity among the

employee’s job’s tasks.

Through rotational job training system.

The NBP promote the team work and under

this system employee coordinate to each

for the accomplishment organizational

goal. Moreover, NBP encourage the

employee to be recognized as team.

NBP ORGANIZATION GOAL SETTING NBP organization in goal setting follow

up the points which lies in its goals and prepare the designee of routs which lead toward their achievement.

To enhance profitability and maximization of NBP share through increasing leverage of existing customer base and diversified range of products.

STAKE HOLDER OF NBP

Federal Govt of Pakistan, Provincial

Govt. of Pakistan

State Bank of Pakistan are the stake

holder of NBP.

SPAN OF CONTROL

In NBP branch system only one manager

control the whole operating with the

help of assistant manager. Therefore, it

in NBP Branch system it has wide range

of control.

LEADERSHIP STYLE NBP adopt democratic as well as laissesz

fair style in its leadership. NBP has favorable motivation system, the

employee who work effectively, efficiently manager promote them on higher scale and he/she is awarded other benefits.

Some time changes occur in organization system due to technological advancement and competitor planning, which demand to manager to educate the subordinate and to alter and mold their behavior according to the need of time.

PROBLEM FACED BY MANAGER IN MOTIVATION In such condition the manger face the

following type of problem Choose best way for encouragement of

staff Investment on purchase of new

technology Exert extra time for development and

training of the staff Prepare new plan in order to keep it

position at highest level in the competiton market

INFO ABOUT THE HRM FUNCTION AND ORGANIZATION COMMUNICATION SYSTEM

NBP Head Office has HRM Department. Which identify the position according the information available form the branch Managers. It invites the suitable applicant for different positions and select the best candidates from the list of applicants. Then, send them for training into the training staff college. After that they are appointed in various branches. NBP provide job rotation system for development, reinforcement system for motivation and corrective measures, monitoring system for maintenance of internal control system.

COMMUNICATION SYSTEM

NBP adopt verbal communication

system. Which includes the

correspondence and oral exchange of

information. Most of the organizations

use this source of communication.

RECOMMENDATIONS Training of its employees The bank should improve the quality of training of its employees

and the integrity, controls and efficiency of its systems, processes and financial

reporting. Equal Distribution of Workload The employees of the branch should be given equal workload..

Nobody should be given undue relaxation. The personal contacts of some of the employees should not

spoil the environment of the branch IT capability The Bank should improve IT capability in the analytical areas and

to develop a medium term strategy for banking and market operations.

Modern Banking The NBP should adopt modern banking tools and techniques.

Quality leadership, clear vision, investment in IT infrastructure and human resource development.

Adoption OF Advertising Bank should launch advertising campaigns

throughout the year to promote the habits of savings in the people. Bank should open more branches in the remote areas of the country to get deposits and idle resources.

Rank Influence Should Be Avoided Sometimes high rank officers come and want

themselves to be given priority. In these cases bank should strictly follow the rule of „first come first serve‟. This will maintain the trust of other customers that they are not neglected just because they have no rank.

The primary objective of NBP was to purchase jute from the growers in the former East Pakistan and also to perform the commercial banking functions in the country.

The strength of this bank is that it is acting as Agent of State Bank of Pakistan, providing Agency Arrangements for different government organizations include WAPDA and PIA, Profitability and a vide coverage throughout Pakistan.

The challenge it is facing is currently the lack of implementation of rules and regulations that may lead to weak organizational culture, old organizational culture, no regular promotions practices and not much use of IT technology in bank as other are using.

As analysis shows that NBP is a most growing organization with highest return on capital, largest market share amongst all Pakistani banks and cost to income ratio is the highest in banking sector. But there is further need for improvement to overcome weaknesses and to maintain its position as an “Asian Tiger” in banking field.

CONCLUSION