Group project Muslim Commercial Bank

Group project

On

MCB Bank Ltd.

Submitted to:

Submitted by: Nimra Arshad

BBA (Hons)
BBF17005

University of the Punjab

Gujranwala campus
 Introduction

MCB Bank was incorporated under Companies Act 1913 on 9th July,1947 by the Adam-jee

Group just before partition in Calcutta and moved it’s head-quarter in Karachi after separation of

Indo-Pak. Over the years, MCB has grown its branch network and became the largest private

sector bank with over 1,100 branches and 450 ATMs across the country and a deposit base of

about Rs.280 billion.  In addition to and separate from bank's 1,100 conventional banking

branches, MCB bank has 34 Islamic Banking branches across Pakistan.

The Government of Pakistan privatized MCB in 1991 and in 2008, the Maybank (Malaysia)

announced acquisition of 20% of stake. Majority of shares of MCB bank is owned by the Nishat

Group and 11.31% shares are owned by the general-public.

MCB is expanding its presence in principal international markets including UAE, Bahrain and

Siri Lanka. Long Term Credit Rating of MCB Bank Ltd on June 26, 2020, maintained at AAA

[Triple A] and Short-Term Credit Rating of the bank is maintained at A1+ [A one plus] by

Pakistan Credit Rating Agency (PACRA).

MCB Bank was the first Pakistani Bank to be listed at the London Stock Exchange in October

2006 when it raised US$150 million global depositary receipts.

 President’s Message about HRM in MCB

“We at MCB Bank Limited believe that every employee is unique and possesses distinctive

talents that we value and nurture. MCB Bank is home to an exclusive group of committed and

dedicated individuals who jointly, with their dedication, honesty, innovation and teamwork,

contribute towards our collective success. Our objective at MCB Bank is to ensure that we have

motivated, professional and customer-centric employees on board who help us deliver the

promise of being the ‘most credible bank’ across the industry.”

Imran Maqbool

President & CEO

MCB Bank Limited

HR System in MCB Bank

MCB has a well-established HRM department which is dedicated for hiring capable, skill-full

and well-educated employees which are selected through special selection process like interviews

and written tests to ensure that the most capable employees are hired. It also keeps in view the

needs of existing employees. MCB has strict rules and regulations and employees learn culture by

managers and trainings are conducted and different workshop are organized for employees.

1. HR Planning

In MCB bank, HR department along with the finance department do HR planning. When the HR

manager do environmental scanning and feel the need to appoint some new employees then the

finance manager estimate the impact of advertising campaign, training cost ,orientation costs,

compensation ,salary increment, bonuses, and other motivational programs on the company’s

profitability.  HR is largely dependent on finance for things like budget, new hiring activity, or

for training the existing workforce for programs that increase employee engagement.

In order to determine future job requirements, the HR department in MCB Bank uses the

following Forecasting techniques:

 Zero based Forecasting

  Bottom up Approach

 Scatter Plot

 Ratio Analysis

2. Recruitment

After planning, it is analyzed which job is going to be filled and the requirements for the

candidate are identified:

Identify Candidates

HR Department in MCB identifies its candidates by developing the criteria for job description

and job specification and these specification and requirements are mentioned in job vacancy ads

that are spread through different media like Internet and newspapers.

 Sources of candidates in MCB Bank

Internet has made the world a global village so HR Department in MCB Bank has availed this

opportunity and made it easy for people to know about jobs in MCB Bank by using Rozee.pk,

jobsalert.pk and paperads.com for advertisement. Applicants can easily know that a job is
available in MCB Bank and can easily apply for it online. This is the most important mean of

advertisement according to the interviewee of mine from the Bank.

 Promotions

Employees are promoted from one department to another after keeping in view their efficiency

and experience.

 Other sources include educational institutes, employee referrals, unsolicited applicants,

print media and broadcast news.

3. Selection

Many of the candidates apply for job in response to job advertisements by providing their CVs.

Selection board goes through those CVs and select those candidates who fulfill the criteria of

selection board and select the final employee after various tests and interviews.
  Interview

In this process, the HR manager or a person hired by HR department interview the short-listed

candidates and select the most suitable candidates for further process.

 Selection Interview

A selection interview is the process designed to predict future job performance on-the-basis of

the oral responses of candidates to oral inquiries. In selection interview, job related questions are

asked by a person related to the particular field for which candidate has applied.

 Final Interview

The final interview helps to select the best and most suitable candidate for the job. The candidates

are appointed as probationary officers.

4. Orientation

After the final selection and before the training of new candidates, orientation is conducted for

new employees. In orientation, the new employees are provided basic information and

background about the MCB Bank. The employees are provided with “job description manual”
that contain all the rules and regulations that the employee will have to follow. The basic contents

of orientation are:

 Information on employee benefits

 Personal policies

 The daily routine

 Company organization and operations

 Safety measures and regulations

5. Training and Development

MCB Bank has the latest training facility at its training and development center (TDC) and a

dedicated training team to look after most of the training needs of its employees. At first, every

new employee is trained at this training center to teach basic knowledge and skills.

The training methods used by MCB Bank include:

 On-the-job Training

 Off-the-job Training
  Informal Learning

 Effective Lectures

Employee development is defined as a process where the employee with the support of his/her

employer undergoes various training programs to enhance his/her skills and acquire new

knowledge and skills. Employee development is the number 1 factor for employee retention. The

understanding of the employee with other employees and supervisor and manager help him to

achieve his goals by learning more from their expertise and knowledge.

6. Performance Management

In MCB Bank, performance management is done on “Management by Objective” and “Enabling

traits”. The objectives are given to each employee at the beginning of each year and 60%

weightage is given to these objectives in performance management. If employee completes these

tasks given to him efficiently then it helps him to get various benefits at the end of year. Another

40% weightage is assigned to enabling personality traits which are cleared by the supervisor at

the beginning of the year. Enabling traits means the behavior of employee with other employees,

his uniform during banking hours, if he is following the time schedule and his attitude with

customers etc. The performance management system is modified and upgraded from time to time
with the requirements of the banking system. On-the-basis of this management, employees are

given various bonuses at the end of the year.

7. Career Management

MCB Bank is providing various chances of promotion for the hard-working employees and for

those employees who show their best performance and achieve the goals with great efficiency

and effectively. Employees along with the organization work together for career development.

The employee set up a goal or target in his/her mind and expect to achieve that target or to get

that level of success and the organization provide the basis for employees to learn and improve

various skills and provide a cost-effective career planning program and an environment to help

the employees achieve their goals.

 8. Compensation

Compensation refers to a financial reward that is given to employees based on his performance.

Compensation is given to attract the talented and qualified people to join their company. Example

of compensation include salary programs and structures, salary paid to employees.

In MCB Bank, apart from the basic salaries of employees, they are provided with

 Utility Allowance

 Medical Allowance

 Overtime Allowance

 Education Allowance

 House Rent Allowance

 Bonuses
 9. Incentive and Benefits

Benefit refers to a non-financial reward given to an employee to appreciate his efforts in service.

Benefits are exchange of values for labor provided. For example, in addition to monthly salary

paid to an employee, they may also be eligible for paid vacation days, health insurance etc.

In MCB Bank, following incentives and benefits are provided for the employees:

Financial Benefits Non-Financial Benefits

Life Insurance¨ Sound working environment
Disability Insurance Job Security
Medical Allowance Flexible work Arrangement
Pension plans Flex hours
Bonuses Sick Leave
Profit sharing

10. Conclusion

MCB is clearly the first approach of everyone who want a friendly and co-operative environment

along with highly responsible staff. The HR system is fully up-to-dated. The employees in the
bank are fully satisfied with their system. The bank is keeping their employees satisfied by

providing sufficient benefit in return for their hard-work and by providing them a good

environment. The employees are happy with the promotion opportunities provided to them from

time to time. The special training center of MCB Bank helps the new employees to learn different

skills needed for the job. MCB Bank is already a big name in the banking sector of Pakistan, if

they give more attention to their system then in few years it will be the leading bank of the

country.

11. Recommendations

 The bank should focus more on college recruiting because the young minds can help the

bank to move forward with the modern world.

 Surveys should be conducted regarding satisfaction of employees and surveys must also

be conducted from the customers regarding the attitude of banking staff with them.

 The company should focus more on external hiring rather than re-hiring former

employees because if those employees can leave the Bank once then they may do it again

whenever they get a chance.

Interview

I visited the MCB Bank (Ghalla Mandi Branch, G.T Road, Gujranwala) and interviewed the

(Branch Operation Manager) Mr. Aamir Naseer-u-din. Mr. Aamir was very satisfied with the HR

system of MCB Bank and told me that he was working in some other bank and then he moved to

MCB Bank because of good reputation of the bank and is much satisfied with this bank. He said

that the good thing about the HR system of bank is that they have a special training department

for new employees and when the new employees join bank after training, they do have enough

knowledge about the environment of bank and this helps them in their on-the-job training. MCB

Bank make sure to satisfy its employees by bonuses, different types of compensation and benefits

which urge the employees to do their best in doing their jobs.

12. Performance Appraisals Process

13. MCB performance appraisal system is based on a combination of Management by

Objective

14. 'MBO‘ and 'Enabling Traits' approaches, under which:60% weightage is given to

performance

15. goals discussed and laid out in the beginning of the year. Another 40% weightage

is assigned to

16. enabling personality factors, which are clarified to all employees by their

supervising officers at

17. the start of each year. The system and process flow of the appraisal

process is modified,

18. improved and upgraded from time to time in line with the Bank's requirements, as

well as with

19. industry practices. HR Department notifies all units of the Bank of the PA system

and procedure

20. currently in use. Units are also notified deadlines for goal setting, form filling,

monitoring and

21. final appraisals.

22.