Internship Report MBA Human Resource Management HRM (AIOU)
TABLE OF CONTENTS
Page #
Acknowledgement 2
Preface 3
Transmittal Memorandum 5
Executive summary 7
SECTION # 1
1.1 Introduction to the organization 9
1.2 Business volume 10
1.3 Objectives of the bank 11
1.4 Functional departments of the bank 12
SECTION # 2
2.1 Objectives of studying the organization 13
2.2 Nature of the business 14
2.3 Product Lines of the bank 15
2.4 Competitors 16
2.5 Operational zones 17
2.6 Board of directors 18
2.7 List of products 19
SECTION # 3
HUMAN RESOURCE DEPARTMENT FUNCTIONS
3.1 Staff Role of the HR department 20
3.1.1 Policy initiation and formulation 21
3.1.2 Advice 22
3.1.3 Service 23
3.1.4 Control 24
3.2 Human Resource Department 25
Internship report on the Punjab Provincial Cooperative bank Ltd.
2
3.2.1 Transfers, promotions, Layoffs 26
3.2.2 Training and development 27
3.2.3 Compensation and administration 28
3.2.4 Health and safety 29
3.2.5 Discipline and discharges 30
3.2.6 Labor relations 31
3.2.7 Benefits and services 32
3.2.8 Organizational development 33
3.2.9 Human resource planning 34
3.2.10 Equal employment opportunity 35
3.2.11 Personal information system 36
SECTION # 4
4.1 Policies of the bank 37
4.2 Administrative head 39
4.3 Reserved funds of the bank 40
4.4 Current deposits 41
4.5 Sheets showing the financial position of the bank 42-46
SECTION # 5
HUMAN RESOURCE DEPARTMENT OF THE BANK 47-51
SECTION # 6
6.1 Weaknesses 52-53
6.2 Recommendations 54-55
Conclusions
ACKNOWLEDGEMENT
I have great sense of gratitude for the most Beneficent and Merciful Allah who has
Always helped me in all matters of life .I tried but He rewarded me more than the
Tried.
I have deep feelings for whole of my family, in general, and for my Father Malik
Khuda Bukhsh, my Mother and my elder brother Sámi Ullah, in particular .They
have always soothed me, elevated me and their words and du’a has floated me in
the deep seas of troubles. All of my successes are due to my family.
I am thankful to all of my teachers and my class fellows and friends whom
cheerfulness and guidance is an asset for me .I am especially thankful to the bank
staff and particularly.
Mr. Tousif Chief Manager Finance
Mrs. Perveen Deputy GM
Mr.Iftikhar Ali Shah Chief Human Resource Manager
PREFACE
This project (internship) report is the compulsion put in by the department of
business administration A.I.O.U. Islamabad for the award of master degree in
business administration.
In order to accomplish the task of completion of the degree, I choose the renowned
and reputed organization that is the Punjab provincial cooperative Bank Ltd .The
Human Recourse Department of the bank has emerged a successful one in the
organization and the records of the bank are evident to prove the statement. I went
through 3 months internship training in the bank in order to perceive the true art
and the practical picture of the human resources development and to go through
the process by which the organization is making very good out its limited
resources. The report is according to best of my perception and the knowledge
gained via the books and the courses has been tried to be implemented in the due
courses of the business affairs, it will give a comprehensive and sophisticated and
elaborated way of judgment of human resource department of the organization.
For the convenience of the reader I have tried my level best to make the report
comprehensive and elaborative. The sectioning of the report will pave the way to
read and understand the report easily.
The processes involved in the human resources development and management
have been studied thoroughly and the things I have learned will enhance my
capabilities and polish my managerial skills.
I am sure that the department of business administration will oblige me by giving
its recommendation and consent for the approval of the degree and the purpose
Internship report on the Punjab Provincial Cooperative bank Ltd.
6
which I have gone through training and report writing procedure will be served
positively.
TRANSMITTAL MEMORANDUM
To:
The Department of Business Administration Allama Iqbal Open University
Islamabad.
From:
Sana Ullah
Roll No.j5135625
Reg No.00-pjg-0412
House # 373/11, St # 3 Mohallah Chah Muhammoday Wala Abaid Ullah
Road,
Jhang Sadar
Ph # 0471-612598
041-752977
E-mail. Sana_034@hotmail.com
Sana_311@yahoo.com
Subject: Internship report on The Punjab Provincial Cooperative Bank Ltd.
Lahore.
It is the compulsion by the Business Administration Department A.I.O.U.
Islamabad in order to complete the masters degree.
To review the functioning of the human resources department of any organization
is a necessary element of M.B.A. Program.
After the study of organization, after the 3 months practical training at the bank, I
have reached the conclusion mentioned at the end of the report. My main
recommendations to the organization are:
The employees are not satisfied by the promotion criteria and procedure adopted
by the top level management The workers should be satisfied according to their
grades and qualifications.
Human Resources Department should take strong consideration for the retention
and promotion of the employees. More over the customer should be treated in the
more proper and ordered way because during the rush hours there is a bit
negligence towards public dealings.
I thoroughly discussed with top level management of the organization and they
were agreed on the pit falls mentioned by me and to make good and to implement
the recommendations in the due course of business and according to the law .I am
thankful to the staff members and the management team for the successful
completion of the internship and this report. I hope I will fully satisfy the review
panel if they have some extra questions regarding the report. I am equipped with
the necessary knowledge .
I am thankful to the University and the Department for the conduction of the
Human Resources Specialization which enabled me to see through actual things
taking place in any organization.
EXECUTIVE SUMMARY
TITLE: An internship report on the Punjab provincial bank ltd.
Authorization:
Recommendation:
Department of business administration demands every student of MBA program
to go a process of 3 month internship program and to submit the report based on
the observations and work done during the training process. It is actually the
review of any organization currently running its business, having its competitors
.The study of the functions of the human resources department is the main purpose
of this internship.
It is also meant for finding the weaknesses and shortcomings and then giving the
suggestions for improvement.
Process of Review Methodology:
I went through the all functions and processes of the human resources department
of the organization e.g. job analysis, recruitment, staffing, employers training,
performance appraisal processes, compensation packages, retention of employees
etc.
HAZARDS:
The hazards and the problems faced or found in the organization are in its
promotional procedures .The employees are not satisfied with the working of the
promotional board .Some employees working in different capacities were not
satisfied with the present status of the work assigned to them..
Internship report on the Punjab Provincial Cooperative bank Ltd.
10
More over, the employees are not trained according their specialized task
performed by him/her .They are given general training so while performing the
specified task, it is difficult for him to be more accurate and it affects his/her
efficiency.
In the era of specialization, the employee should be trained according to specified
task and the refreshing process should be conducted time to time.
IMPLIMENTATION TIME SLOT:
The suggestions and recommendation can be implemented during the current
fiscal year.
INTRODUCTION TO THE ORGANIZATION
The bank was registered in 1924 to accomplish the three-tier system of
cooperative credit in the province of Punjab. Primary cooperative societies
constituted the base; the central cooperative banks were at the secondary level and
at the top was the Punjab Provincial cooperative bank limited serving as an apex
bank for providing credit to the cooperatives.
In October 1976, the Federal Government Promulgated the “Establishment
of Federal Bank for Cooperative and regulation of cooperative banking
ordinance”, whereby the cooperative banking system in the Punjab was converted
from three tiers into two tiers resulting in the dissolution of 46 central/ urban and
industrial cooperative banks and banking unions. According to the provisions of
the ordinance, the undertakings of the Dissolved Cooperative Banks stood
transferred to and vested by in the Punjab provincial cooperative Bank Limited on
the terms and conditions notified by the provincial Government in order to manage
and control the undertakings of the dissolved cooperative Banks.
BUSINESS VOLUME
The Punjab provincial cooperative bank limited is a scheduled Bank, at
present, having 161 branches at district, Tehsil headquarters and important mandi
towns. Over 38000 cooperative societies are affiliated with the Bank. The paid up
share Capital of the bank amounts to Rs. 112.518 million, out of which the
Provincial Government subscribes shares worth Rs.16.235 million. The authorized
share capital of the Bank consists of unlimited number of shares of Rs. 100 each.
A member cooperative society, which has to borrow loan from the Bank for its
members, has to purchase at least shares equal to 2% of the MCL of the society
fixed with the Bank.
OBJECTIVES OF THE BANK
The main objects of the Bank are as under:
1. To afford financial assistance to members societies in such manner as
may be necessary.
2. To carry on banking and credit business.
3. To inspect, supervise and estimate credit of member societies.
4. To help the growth of the cooperative movement.
FUNCTIONAL DEPARTMENTS OF THE
BANK:
There are six functional departments of the bank. These are :
1)Credit and Recovery
2)Audit and Inspection
3)Board and Properties Affairs
4)Finance
5)Human Resources
6)Law and Advisory
All these departments work under the supervision of the deputy general manager
.Along with the deputy general manager and the heads of all these functional
departments ,there is general manager of the bank .All these department work
under the policies framed by the board of directors from time to time and the
policies are conducted by the H.R. Department.
OBJECTIVES OF STUDYING THE
ORGNIZATION :
1. To review the human resources department .
2. Analysis of the functionalities of human resources department .
3. To do a comparative analysis of the organization with the other in the same business and capacity .
4. Finding out the weaknesses, short comings, strengths and beauties of the human resource department .
5. To put some suggestions & recommendations for the development and polishing of the human resource department.
NATURE OF THE BUSINESS :
The Punjab Provincial Cooperative Bank Ltd. is one of the famous and well
known organization in the banking sector. Its services have won good will and the
bank is considered credible throughout its area of operation and range of business.
It gives loans to the cooperative societies and to the individuals too. More over it
also offers services in the normal banking of daily life.
PRODUCT LINES OF THE BANK:
The oldest scheduled bank of Pakistan gives the following services to the
customer.
1) A leading bank for providing the agriculture loans to the low scaled formers
by its Punjab wide 161 branches.
2) The availabilities of productive loans to the formers of co-operative
societies for seeds, pesticides and fertilizers on easy conditions.
3) Mid term loan for the purchase of tractors in a co-operative societies.
4) Agriculture machine and tube well loans.
5) The loan up to 5 Lac for co-operative societies for the increment in the
industrial production.
6) Females may also benefit themselves by same facilities.
7) Availabilities of the loan for the development of Information Technology.
8) The launching of gold loan for general public and agriculture purposes at
Tehsil level.
COMPETITORS:
1) I.D.B.P.
2) A.D.B.P.
3) Muslim Commercial Bank Ltd.
4) Habib Bank Ltd.
5) Foreign banks like City Bank , Standard Charted Bank Ltd. etc.
Chartered Accountants:
Ilyas Saeed
Midsnell Group International
Legal Advisors:
Khan Ilyas
Mian Safdar Mehmood
Rab Nawaz Malik
Bank location:
Cooperative Bank Square,
Shahrah-e-Quaid-e-Azam(The Mall)
Lahore.
OPERATIONAL ZONES
For the convenience of the operations of the bank and providing more facilities
to the customers at or near their home town the bank is working with following
zones along with the head office at Lahore.
Multan Zone
Sargodha Zone
Faisal Abad Zone
Rawal Pindi Zone
Gujranwala Zone
Bahawalpur Zone
D.G.khan Zone
BOARD OF DIRECTORS:
Following members constitute the board of directors for general management
of the bank.
Registrar, Cooperatives, Punjab Ex-Officio President
Chief Auditor, Cooperatives, Punjab Ex-Officio President
34 duly elected members, one from each Distt. Member
Three nominated members by the Registrar Member
The board of directors has 39 members. A nominee of the Federal Bank for
cooperatives attends the meetings of the board of directors as observer. The
board of directors elect a vice president from amongst its members. The board
of directors may delegate all or any of the powers for proper and efficient
conduct of the business of the bank to the president, vice president, general
manager, any other responsible officer of the bank or a sub committee
appointed by the board of directors.
LIST OF PRODUCTS:
1) Shares capital.
2) Reserve deposits.
3) Securities.
4) External loans .
5) Investment.
6) Loans .
7) Reception of utility bills.
8) Reception of the application for the Pilgrimage (Hajj).
Human Resource Department is not directly concerns with the customer
satisfaction but its policies are the integral part of the bank achievement plans and
its policies ensure the right person to be hired, for the right and specified job,
trained, evaluated, giving incentives and hence by appointing right persons in the
different functional departments of the bank. So Human Resource Department
helps in the proper functioning of the products and if there are complaints against
the products of the bank or the customers are not satisfied with the bank products,
it takes measures in order to determine the job specifications, hiring of the
appropriate person or conducting the refreshing courses etc. and hence leading
toward goals achievement.
STAFF ROLE OF THE HUMAN RESOURCE
DEPARTMENT OF THE BANK
The Human Resource department of the bank operates in an auxiliary,
advisory, or facilitative relationship to other departments in the organization. Any
staff unit, whether it be personnel or otherwise, exists to help the line effectively.
It has been created in the first place to take advantage of specialized talent and
knowledge.
The H.R department of the bank generally performs the following roles:
1. Initiation and formulation
2. Advice
3. Service
4. Control
POLICY INITIATION AND FORMULATION
The executive in charge of the H.R.Department is the individual most actively
involved in policy revision to cover recurring problem or to prevent anticipated
problems. Ordinarily these are proposed to the president of the company, and it is
up on the latter’s authority that the policy is actually issued. When proposing a
new or revised policy the personnel director must analyze problem that have
occurred in the past, survey other companies to determine how they handle similar
situations, discuss the matter with colleagues and subordinates and give due
consideration to the prevailing philosophy in the organization.
ADVICE
A major portion of the activities of those engaged in staff personnel work is in the
nature of counsel and advice to line manager. Countless examples can be given. A
shop foreman may be confronted with a grievance over distribution of overtime.
Another foreman may have the problem employee who he feels should be
disciplined or even suspended. At the time of the annual review of all salaried
personnel for possible pay increases, the operating manager plays a key role in
advising operating manager on the administration of the program. An apparent
concerted slow down may occur in the assembly department. It may have been
instituted by the union in retaliation for the cutting of piece rates the week before.
How should production supervision handle this situation.
The H.R.Managers and their staffs are expected to be fully familiar with
H.R. policy, the labour agreement, past experience and the needs and welfare of
both the company and the employees in order to develop a sound solution.
Successful personnel specialist must be people centered. They must be feeling
sensitive, wants, and motives of other people. At the same time they must
continually be cognizant of their obligation to preserve the structure and
functioning of the organization. In fact, this really is the essence of H.R.
management. Management must seek to so direct and coordinate the efforts of the
people that the goals of the organization are achieved while at the same time
providing need satisfactions for the members of that organization.
SERVICE
The service responsibilities of the H.R. department are apparent when one
examines such things are as the employment, training, and benefits functions. The
tasks of recruiting, interviewing and testing job applicants are performed in the
H.R.Deptt.. Training programs are planned, Organized and often staffed through
the H.R.Deptt. H.R.Deptt must see that adequate instructional materials and
facilities are available. Once pension and insurance programs have been setup, all
claims must be through the H.R.Deptt. The maintenance of adequate employee
records is a service function that permeates all functional specialties within the
personnel field.
Control
The H.R.Deptt carries out important control functions. It monitors the
performance of line department and other staff departments to insure that they
conform to established personnel policy, procedures, and practices. The control
function of the personnel department is quite comparable to the activities of a
quality control group that measures product variables to insure conformance to
engineering specifications or to the activities of the auditing staff that inspects
accounting records to ascertain conformance with prescribed standards.
HUMAN RESOURCEDEPARTMENT
FUNCTIONS
H.R. Management activities are carried on both by the staff H.R.Deptt and
by operating management in the course of directing the activities of the work
force. Variation from the pattern described may occur in particular companies
because of special circumstances.
This function includes recruitment, selection, and induction into the
organization. The initial decision to add someone to the payroll is made by line
management. It is also its responsibility to determine the content of the job to be
performed and the employee qualifications necessary to perform the job
satisfactorily. Very commonly, statements of job content and employee
qualification have been previously worked out jointly between line management
and the H.R.Deptt. These are recorded in the form of job descriptions and job
specification. The H.R.Deptt must develop and maintain adequate sources of
labour. It must set up and operate the employee selection system, which may
include interviews, selection tests, a medical examination, and reference checks.
Quite commonly the role of the H.R.Deptt is one of screening with the final
decision to hire or reject being made by the supervisor who requested the new
employee. However, in the case of large-scale hiring program of unskilled or
skilled workers, the H.R.Deptt is commonly granted full and final authority to
make the hiring decision.
The new employee’s supervisor bears Important responsibilities for
introducing his/her to the new work environment. This is often called orientation
or indoctrination.
TRANSFER, PROMOTION, LAYOFF
For these tasks the H.R.Deptt serves primarily in a coordinative capacity.
When employees are moved from one department to another either because of the
needs of the business or because of individual requests, the personnel records may
be studied to ascertain that they posses the requisite skills. Layoffs typically are
processed by the H.R.Deptt to insure that the proper order of preference is
followed. This can become complicated of combinations of jobs, departmental,
and plant wide seniority rights must be observed. When a vacancy occurs in a
position, it may be filled by promotion from within or by direct hiring from
outside the company. This decision is often made jointly between the
H.R.Manager and the executive in change of the department where the vacancy
has occurred. Many companies may establish policies to cover matters of this type.
The actual final decision as to which candidate is chosen for the promotion is
largely made by the executive in whose unit the vacancy has occurred.
TRAINING AND DEVELOPMENT
On-the-job training and coaching are performed by the line supervisor or by
a specially designated employee who acts in the role of an instructor. It is the
responsibility of the personnel industrial relations group to determine training
needs in cooperation with the line management. Once the needs are established,
the personnel training specialists must design a program to accomplish the desired
results. If the program takes the form of in service class room courses, it usually is
administrated by H.R.Department. Coaching, performance appraisal, and post
appraisal counseling, job rotation, understudies, and special broadening
assignments are largely executed by operating managers but coordinated by a
central H.R.Deptt.
For those enterprise that are engaging in an organization development
activity the personal manager or the personnel staff.
For those enterprise that are engaging in an organization development
activity the H.R.Manager serves in a consulting role to an operating department.
He plans programs in cooperation with managers of operating departments,
diagnoses “people” problems, conducts various workshop type programs, and
provides feedback to the managers about ongoing problems.
COMPENSATION ADMINISTRATION
The work of designing and installing a job evaluation program is handled, for the
part, by the H.R. department with some consultation with line managers . The
decision to adopt a particular pay structure with pay grades and fixed minimums
and maximums for the grades is a top management responsibility.
The day-to-day work of analyzing jobs, evaluating their worth according to
a formal job evaluation plan, and maintaining suitable records is are
H.R.deptt.functions Periodic wage are conducted by the H.R.deptt, but any firm
decision to rise or change the entire schedule is particularly always reserved for
the chief executive officer of the organization.
HEALTH AND SAFETY
A significant part on occupational health programs is the identification and control
of agents within the working environment that can cause occupational diseases.
some agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat,
radiation, biological substances and stress. Industrial hygienists are employed to
identify and control such hazards to health.
Other important elements of an employee health programs are pre-employment
medical examinations, periodic examinations for those working on jobs having
exposure to occupational disease-causing agents, rendering of first aid, treatment
of minor ailments such as colds and headache, and providing health education
information. Small companies typically hire physicians, nurses and industrial
hygienists only on the consulting and part time basis. Large firms tend to be
staffed with full time personnel’s in these areas.
The safety program is directed toward the prevention of work injuries. The
main element are engineering , education and enforcement. The safety director
who I usually a member of HR department works closely with the plant
engineering unit to have machines and equipment properly guarded. New
production processes and machines must be o designed and constructed so that
possibility of human injury is remote.
DISCIPLINE AND DISCHARGE
Discipline has two principal meanings. In the first sense it means “training
that molds or corrects.” This means the achieving and maintaining of orderly
employee behavior because the people understand and believe in the established
codes of conduct. The second meaning of the term discipline refers to punishment
of wrongdoers.
The H.R. department commonly assumes the responsibility for formulating
the list of necessary rules together with the range of penalties for each together
with the range of penalties for each offense. Frequently this list of rules and
penalties is discussed and cleared with high-level line management before it is
issued and communicated throughout the organization.
Most commonly, actual approval by the H.R.department has to be obtained
before and employee may be discharged. The reason is that discharge is a very
serve penalty and should be used only when a very clear case can be shown. In
addition, it is especially vital to achieve companywide uniformity in the handling
of such cases.
LABOR RELATIONS
When a union has been certified by the national labor relations Board, as
the result of an election, as the sole and exclusive bargaining agency for the
employees, then management must bargain with it in regard to wages, rate of pay,
hours of work, and other conditions of employment. The principal tasks involved
in handling labor relations are contract negotiation, contract interpretation and
administration, and grievance handling.
The H.R.department plays very significant role in labor-management
relations. The director of industrial relation usually serves as a key member of the
bargaining team often acting a chief management spokesman. In operating on a
day-to-day basis under the terms of the labor agreement, line supervision often
finds frequently occasion to consult the H.R.department regarding such matters
like allocation of over time, handling of transfers and layoffs, and the application
of contract work rules.
BENEFITS AND SERVICES
Included under this category are pensions, group life insurance, hospital
and medical insurance, sickness leave pay plans, supplemental unemployment
compensation, loan funds, credit unions, social programs, recreational programs
and college tuition refunds plans.
The actual decision to establish or to expand these programs is
nearly always made by top line management upon the advice and consultation of
the H.R.department. The actual design of pension and insurance programs requires
a great deal of technical knowledge. These programs are generally worked out in
conjunction with insurance companies or insurance consultants. After these plans
are installed, the day-to-day processing of claims is handled by the
H.R.department
ORGANIZATION DEVELOPMENT
Organization development is a general approach for improving the
effectiveness of an organization that utilizes a variety of applied behavioral
science methodologies. Among the objective of the OD are to increase the level of
trust and supportiveness among people in the organization, enhance interpersonal,
skills, make communication more open and direct, directly confront problems and
to tap the knowledge of all who can contribute to problem solutions wherever
they may be in the organization.
Consultants are often involved in OD work they work jointly with
management to collect data, diagnose problems and work of solutions. Typical
kinds of OD activities are interventions are confrontation meetings, team
buildings, survey field, back conflict resolution, laboratory training and
managerial grid exercises and projects.
HUMAN RESOURCE PLANNING
Another new function that has emerged in recent years in human
resource planning (also) called manpower planning). Sometimes a specific person
or office has this as its primary responsibility; more commonly the responsibilities
are shared by several people within the corporate personnel unit. Human resource
planning is the process by which is a firm insures that it has the right number of
qualified persons available at the proper times, programming jobs that are useful
to the organization, and which provide satisfaction for the individuals involved.
The principal elements involved in human resources planning are as follows:
(1) goals and plans of organization; (2) current human resource situation
including skills inventory; (3) human resource forecast including comparison of
projected future demand for employees with projected supply; (4) designing programs
to implement the plans; and (5) audit and adjustment.
EQUAL EMPLOYMENT OPPORTUNITY
Very commonly the chief personnel executive in a company bears the major
responsibility for insuring that the organization complies with the various equal
employment opportunity laws and regulations. She or he often delegates the day-to-day
detailed administration to someone within the H.R.department who either specializes in
this field of work or who performs these duties along with others department such as the
employment function. Usually the chief executive officer (CEO) of a company, whether
she or he be called the chairman of the board or the president, plays a key role in the
formulation and implementation of equal employment policy.
PERSONNEL INFORMATION SYSTEM
Today, many organizations have staffs of people trained in mathematical analysis,
computers, and management information systems. Some companies have applied
these capabilities to personnel work. Among the applications have been human
resources planning, skills inventories, employee benefits analysis, and productivity
studies.
POLICIES OF THE BANK
The bank maintenance the account on cash basis under the historical cost
convention and are in conformity with the provisions of C0-opertive societies Act,
1925.
STAFF RETIREMENT BENEFITS
The bank operates the following schemes for its employees:
a) For employees who did not opt for the new scheme the bank operates the
following:
i) Approved contributory provident fun and
ii) An approved gratuity scheme.
NEW SCHEME
For new employees and for those who opted for the new scheme introduced 1986
for both clerical staff and for officers the bank operates the following:
i) An approved funded pension scheme for which monthly contributions
are made: and
ii) An approved non-contributory provident fund introduced in lieu of the
contributory provident fund.
TAXATION
Provision for taxation is based on taxable after taking in to account
applicable exemptions and rebates, if any, as laid down in the income tax
Ordinance. 1979.
INVESTMENTS
Investments in marketable securities are stated at market value. Premium
on Pakistan investment bonds are amortized over a period of ten years.
ADVANCES
Loans and advances are stated at their principal amounts, net of provisions
for loan losses. The specific provisions for possible loan losses have been made as
considered necessary after taking in to consideration the realizable value of assets
held by the bank as security.
TANGIBLE FIXED ASSETS
Fixed assets, other than land which is not depreciated, are stated at cost les s
accumulated depreciation. Depreciation is computed over the useful economic
lives of the related assets and charged to income applying diminishing balance
method except motor vehicles on which the depreciation is charged on straight
asset where the asset has been used for more than six months in the accounting
year. No depreciation is provided in the year of disposal.
Maintenance and normal repairs are charged to income as and when incurred.
Major repairs and improvements are capitalized. Gains or losses, if any, on
disposal of fixed assets are included in current income.
REVENUE RECOGNITION
Revenue from advances and investment are recognized on cash basis.
ADMINISTRATIVE HEAD
The administrative head of the Bank is general manager who controls the affair s of
the Bank on the basis of policy framed by the board or directors from the time to
time. The following executives at head office assist him.
Sr. No Name of Executives
1 Deputy General Manager
2 Chief Manager Human Resources Department
3 Chief Manager, Audit & Inspection
4 Chief Manager, Credit & recovery
5 Chief Manager, Board & Properties affairs
6 Chief Manager, Finance
7 Chief Manager, Legal and Advisory Services
RESERVE FUNDS OF THE BANK
The bank maintaining reserve funds, as on 30-04-2001, as under:
Sr. No Type of Fund Amount (Rs) million
1 Reserve Fund 298.248
2 Bad & Doubtful Fund 410.475
3 Building Fund 103.862
4 Other Funds 79.401
Total 891.986
CURRENT DEPOSITS
The bank held deposits to the tune of Rs 1,339.009 million as on 30.04.2001 the
bank up of which is given here under.
Sr no Nature of deposit Amount (Million) (Rs)
1 Current Deposits 83.946
2 Saving Deposits (PLS) 1042.095
3 Fixed Deposits 131.280
4 Other Deposits 81.778
Total 1,339.099
The cash balances including bank balance of the bank as on 30.04.2001 stood at
Rs 889.996 million.
A sum of Rs. 369.993 million has been invested by the Bank in Government
securities, Government Bank and shares of other institution according to the policy
laid down by the State Bank of Pakistan.
HUMAN RESOURCE DEPARTMENT OF THE
BANK:
The bank has won repute in the field of agriculture ,industrial loan and for the
daily life banking .It has been achieved only due to the proper and exact
functionality of the Human Resource Department .The Head of the Human
Resources Department is the general manager and his team comprises of chief
managers of different departments .
The Human Resource Department may advice the administration and the board
of directors on special issues of the bank and then it offers services in order to
accomplish the task. The human resources are the ultimate deciders provided
by the Human Resource Department. It not only gives advice , offers services
but also control the policies of the administration.
RECRUITMENT:
The department first determine the need of employees to be hired .The post
against each vacancy is advertised and then the applications are invited from
the applicants .If there is a post of manager cadre ,the general manager
personally is the interviewer of the interviewees along with his team .
TRAINING:
Then the qualified candidates undergo a training period under the banner of
Human Resource Department .There are co-operative training college at
Faisalabad and Bahawalpur Districts .Then the specified persons are appointed
against each specified post so the best results are expected and hence the
performance and good will of the bank is increased.
TRANSFER:
Human Resource Department of the bank also deals with the transfer of the
employees because the Human Resource Department knows the demands of
the job and the right person is employed over the right place by transferring
him to that post .
Health and safety matters are also handled by the Human Resource Department
in the bank. As there are no apparent dangers to the employees and customers
hence it is the responsibility of the Human Resource Department to see through
the matter.
EVALUATION:
The employees are then properly evaluated by different evaluation criteria and
procedures in order to motivate them and to enhance the performance .The job
appraisal system comprises of different questionnaire depending upon which
the whole system is forwarded .
UNION:
The union plays an essential part for the labor management relation .It bargains
with the management in the light of the demands of the employees .It is the
responsibility of the Human Resource Department which holds the formal talks
and the negotiations between the parties.
Human Resources Department is also responsible for the dealing with other
organizations running the same business.
Discipline and discharge is the necessity of each organization and it is
maintained by the Human Resource Department of the bank. If an employee is
creating problems for the administration for nothing, he may be warned and
depending upon the severity of the matter and allegation he may be suspended
and even terminated.
Work Place Training:
The work place training is the key factor of the policies of the Human
Resources Department .As the bank is public dealing entity so the work place
training is the integral factor for the good will and the status of the policies and
services of the bank.
REFRESHING COURSES:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by different
financial institutions and are attended by the staff members on the
recommendations and behalf of the H.R.Department Refreshing courses are for
the managerial and clerical staff. So they are equally and firmly evaluated and
enhancement of their capabilities is achieved.
PAY PACKAGES:
The packages are also determined by the Human Resources Department. These
are determined on the basis of performance, ACR, qualification and seniority
.It has comparatively low pay packages yet good ones.
The managerial posts are filled by the three methods by the Human Resource
Department.
1) Direct
2) Graduate
3) Non-graduate
The promotions are on the seniority cum fitness basis .So the qualified and the
efficient workers are supposed to come up to the top.
Human Resource Department also deals with the retention and firing of the
employees .In case of deceased employee, one of his child gets the job in the
bank .According to qualification and skills it ensures the employee benefits
.More over the Human Resource Department also cares for the old age benefits
of the employees .It is obvious that the Human resources Department is of key
importance and is playing a complementary role in the development and
promotion of the bank.
INFORMATION TECHNOLOGY:
The information system is the core of the operationing of the each and every
organization. If helps in the policy formulation and the running of the business
affairs properly by providing the 1st hand and accurate information. The whole
Human Resource Department functionality depends upon the information
system. Better the information system, better the Human Resource Department.
The Punjab cooperative bank has good information system and is serving the
Human Resource Department bitterly and efficiently and effectively.
WEAKNESSES:
1) The Human Resource Department is not up to the mark for the proper
appraisal system of the staff.
2)The policies of the bank are determined by the board of directors in
accordance with the H.R. Department. However there are certain policies in
which the Human Resource Department is dependent on the State Bank of the
Pakistan e.g. the mark up rate that is 14%.It limits its powers and dependency
is increased and risks are increased.
3) Employees have developed a psychology that promotion criteria &
procedures of the Human Resource Department of the bank are not justified.
4) The mark up rate in many programs is much higher hence creating the
problems for customer.
5) Human Resource Department is lacking employee training centers. There
are only two training centers at Faisalabad and Bahawalpur which are
insufficient for the training and refreshing courses of the employees.
6) If an employee wants to study during the job, he has to take approval from
the Human Resource Department of the bank, there are certain bottle necks for
taking such approval.
7) Proper evaluation of the employees is not in the normal functioning of the
bank.
8) Refreshing courses are on & off, not timely and frequently.
9) The proper information system is not in progress for the Human Resource
Department. The automation process by the Human Resource Department is
slow hence delaying the functioning of the bank.
10) Human Resource department lacks staff and it is very difficult for the
Human Resource Manager to do the right things for their organization and it
takes much time for normal working of the organization.
RECOMMENDATIONS
1) The Human Resources should take less time in recruitment and training the
staff.
2) Refreshing courses should be adequate and more frequent during the year.
3) The promotional criteria by the Human Resource Department should be
defined and be as per rules.
4) More training centers should be established. If there is lack of resources, it is
difficult, the training centers of the other organizations in the same capacity
can be utilized by determining the terms and conditions.
5) During the training by Human Resource Department the ethical values
should be more emphasized.
6) The proper and competitive evaluation of the methods and procedures
adopted by other competitors will enhance the performance of Human
Resource Department.
7) This is the era of Information Technology. The functions and procedures of
the bank should be converted from manual to the automatic. It will enhance the
performance of the Human Resource Department and ultimately of the bank.
Human Resource Department should allocate resources for this purpose.
8) Human Resource Department may advice and train employees for one
window operation in order to reduce the time and conserve the resources.
9) Agents for the promotion of the bank policies and to facilitate the customers
by the Human Resource Department may be appointed with proper check and
balance system.
10) Pay packages may be revised in the light of profit earned by the
Organization.
CONCLUSIONS:
No doubt bank is financial institute but the working substances are the human
Being .It goes with out saying that Human resources are the most important in
The organization and so does the Human Resource Department .It integrate all
The activities and functions of the bank like job analysis, recruitment, staffing,
Training, designing compensation package, employee’s appraisal system.
Human Resource Department plays the key role in the hiring, retention,
Motivation and promotion of the employee’s .Actually it assigns the specified
Duties to the specified persons in this age of specialization.
Human Resource manager should be well versed and confident in his field. He
Should be humane, well natured and have go face reading capabilities .All this
Ensures his success .He should be of the notion “victory is not the everything
But the way of fighting is”.
Acknowledgement 2
Preface 3
Transmittal Memorandum 5
Executive summary 7
SECTION # 1
1.1 Introduction to the organization 9
1.2 Business volume 10
1.3 Objectives of the bank 11
1.4 Functional departments of the bank 12
SECTION # 2
2.1 Objectives of studying the organization 13
2.2 Nature of the business 14
2.3 Product Lines of the bank 15
2.4 Competitors 16
2.5 Operational zones 17
2.6 Board of directors 18
2.7 List of products 19
SECTION # 3
HUMAN RESOURCE DEPARTMENT FUNCTIONS
3.1 Staff Role of the HR department 20
3.1.1 Policy initiation and formulation 21
3.1.2 Advice 22
3.1.3 Service 23
3.1.4 Control 24
3.2 Human Resource Department 25
Internship report on the Punjab Provincial Cooperative bank Ltd.
2
3.2.1 Transfers, promotions, Layoffs 26
3.2.2 Training and development 27
3.2.3 Compensation and administration 28
3.2.4 Health and safety 29
3.2.5 Discipline and discharges 30
3.2.6 Labor relations 31
3.2.7 Benefits and services 32
3.2.8 Organizational development 33
3.2.9 Human resource planning 34
3.2.10 Equal employment opportunity 35
3.2.11 Personal information system 36
SECTION # 4
4.1 Policies of the bank 37
4.2 Administrative head 39
4.3 Reserved funds of the bank 40
4.4 Current deposits 41
4.5 Sheets showing the financial position of the bank 42-46
SECTION # 5
HUMAN RESOURCE DEPARTMENT OF THE BANK 47-51
SECTION # 6
6.1 Weaknesses 52-53
6.2 Recommendations 54-55
Conclusions
ACKNOWLEDGEMENT
I have great sense of gratitude for the most Beneficent and Merciful Allah who has
Always helped me in all matters of life .I tried but He rewarded me more than the
Tried.
I have deep feelings for whole of my family, in general, and for my Father Malik
Khuda Bukhsh, my Mother and my elder brother Sámi Ullah, in particular .They
have always soothed me, elevated me and their words and du’a has floated me in
the deep seas of troubles. All of my successes are due to my family.
I am thankful to all of my teachers and my class fellows and friends whom
cheerfulness and guidance is an asset for me .I am especially thankful to the bank
staff and particularly.
Mr. Tousif Chief Manager Finance
Mrs. Perveen Deputy GM
Mr.Iftikhar Ali Shah Chief Human Resource Manager
PREFACE
This project (internship) report is the compulsion put in by the department of
business administration A.I.O.U. Islamabad for the award of master degree in
business administration.
In order to accomplish the task of completion of the degree, I choose the renowned
and reputed organization that is the Punjab provincial cooperative Bank Ltd .The
Human Recourse Department of the bank has emerged a successful one in the
organization and the records of the bank are evident to prove the statement. I went
through 3 months internship training in the bank in order to perceive the true art
and the practical picture of the human resources development and to go through
the process by which the organization is making very good out its limited
resources. The report is according to best of my perception and the knowledge
gained via the books and the courses has been tried to be implemented in the due
courses of the business affairs, it will give a comprehensive and sophisticated and
elaborated way of judgment of human resource department of the organization.
For the convenience of the reader I have tried my level best to make the report
comprehensive and elaborative. The sectioning of the report will pave the way to
read and understand the report easily.
The processes involved in the human resources development and management
have been studied thoroughly and the things I have learned will enhance my
capabilities and polish my managerial skills.
I am sure that the department of business administration will oblige me by giving
its recommendation and consent for the approval of the degree and the purpose
Internship report on the Punjab Provincial Cooperative bank Ltd.
6
which I have gone through training and report writing procedure will be served
positively.
TRANSMITTAL MEMORANDUM
To:
The Department of Business Administration Allama Iqbal Open University
Islamabad.
From:
Sana Ullah
Roll No.j5135625
Reg No.00-pjg-0412
House # 373/11, St # 3 Mohallah Chah Muhammoday Wala Abaid Ullah
Road,
Jhang Sadar
Ph # 0471-612598
041-752977
E-mail. Sana_034@hotmail.com
Sana_311@yahoo.com
Subject: Internship report on The Punjab Provincial Cooperative Bank Ltd.
Lahore.
It is the compulsion by the Business Administration Department A.I.O.U.
Islamabad in order to complete the masters degree.
To review the functioning of the human resources department of any organization
is a necessary element of M.B.A. Program.
After the study of organization, after the 3 months practical training at the bank, I
have reached the conclusion mentioned at the end of the report. My main
recommendations to the organization are:
The employees are not satisfied by the promotion criteria and procedure adopted
by the top level management The workers should be satisfied according to their
grades and qualifications.
Human Resources Department should take strong consideration for the retention
and promotion of the employees. More over the customer should be treated in the
more proper and ordered way because during the rush hours there is a bit
negligence towards public dealings.
I thoroughly discussed with top level management of the organization and they
were agreed on the pit falls mentioned by me and to make good and to implement
the recommendations in the due course of business and according to the law .I am
thankful to the staff members and the management team for the successful
completion of the internship and this report. I hope I will fully satisfy the review
panel if they have some extra questions regarding the report. I am equipped with
the necessary knowledge .
I am thankful to the University and the Department for the conduction of the
Human Resources Specialization which enabled me to see through actual things
taking place in any organization.
EXECUTIVE SUMMARY
TITLE: An internship report on the Punjab provincial bank ltd.
Authorization:
Recommendation:
Department of business administration demands every student of MBA program
to go a process of 3 month internship program and to submit the report based on
the observations and work done during the training process. It is actually the
review of any organization currently running its business, having its competitors
.The study of the functions of the human resources department is the main purpose
of this internship.
It is also meant for finding the weaknesses and shortcomings and then giving the
suggestions for improvement.
Process of Review Methodology:
I went through the all functions and processes of the human resources department
of the organization e.g. job analysis, recruitment, staffing, employers training,
performance appraisal processes, compensation packages, retention of employees
etc.
HAZARDS:
The hazards and the problems faced or found in the organization are in its
promotional procedures .The employees are not satisfied with the working of the
promotional board .Some employees working in different capacities were not
satisfied with the present status of the work assigned to them..
Internship report on the Punjab Provincial Cooperative bank Ltd.
10
More over, the employees are not trained according their specialized task
performed by him/her .They are given general training so while performing the
specified task, it is difficult for him to be more accurate and it affects his/her
efficiency.
In the era of specialization, the employee should be trained according to specified
task and the refreshing process should be conducted time to time.
IMPLIMENTATION TIME SLOT:
The suggestions and recommendation can be implemented during the current
fiscal year.
INTRODUCTION TO THE ORGANIZATION
The bank was registered in 1924 to accomplish the three-tier system of
cooperative credit in the province of Punjab. Primary cooperative societies
constituted the base; the central cooperative banks were at the secondary level and
at the top was the Punjab Provincial cooperative bank limited serving as an apex
bank for providing credit to the cooperatives.
In October 1976, the Federal Government Promulgated the “Establishment
of Federal Bank for Cooperative and regulation of cooperative banking
ordinance”, whereby the cooperative banking system in the Punjab was converted
from three tiers into two tiers resulting in the dissolution of 46 central/ urban and
industrial cooperative banks and banking unions. According to the provisions of
the ordinance, the undertakings of the Dissolved Cooperative Banks stood
transferred to and vested by in the Punjab provincial cooperative Bank Limited on
the terms and conditions notified by the provincial Government in order to manage
and control the undertakings of the dissolved cooperative Banks.
BUSINESS VOLUME
The Punjab provincial cooperative bank limited is a scheduled Bank, at
present, having 161 branches at district, Tehsil headquarters and important mandi
towns. Over 38000 cooperative societies are affiliated with the Bank. The paid up
share Capital of the bank amounts to Rs. 112.518 million, out of which the
Provincial Government subscribes shares worth Rs.16.235 million. The authorized
share capital of the Bank consists of unlimited number of shares of Rs. 100 each.
A member cooperative society, which has to borrow loan from the Bank for its
members, has to purchase at least shares equal to 2% of the MCL of the society
fixed with the Bank.
OBJECTIVES OF THE BANK
The main objects of the Bank are as under:
1. To afford financial assistance to members societies in such manner as
may be necessary.
2. To carry on banking and credit business.
3. To inspect, supervise and estimate credit of member societies.
4. To help the growth of the cooperative movement.
FUNCTIONAL DEPARTMENTS OF THE
BANK:
There are six functional departments of the bank. These are :
1)Credit and Recovery
2)Audit and Inspection
3)Board and Properties Affairs
4)Finance
5)Human Resources
6)Law and Advisory
All these departments work under the supervision of the deputy general manager
.Along with the deputy general manager and the heads of all these functional
departments ,there is general manager of the bank .All these department work
under the policies framed by the board of directors from time to time and the
policies are conducted by the H.R. Department.
OBJECTIVES OF STUDYING THE
ORGNIZATION :
1. To review the human resources department .
2. Analysis of the functionalities of human resources department .
3. To do a comparative analysis of the organization with the other in the same business and capacity .
4. Finding out the weaknesses, short comings, strengths and beauties of the human resource department .
5. To put some suggestions & recommendations for the development and polishing of the human resource department.
NATURE OF THE BUSINESS :
The Punjab Provincial Cooperative Bank Ltd. is one of the famous and well
known organization in the banking sector. Its services have won good will and the
bank is considered credible throughout its area of operation and range of business.
It gives loans to the cooperative societies and to the individuals too. More over it
also offers services in the normal banking of daily life.
PRODUCT LINES OF THE BANK:
The oldest scheduled bank of Pakistan gives the following services to the
customer.
1) A leading bank for providing the agriculture loans to the low scaled formers
by its Punjab wide 161 branches.
2) The availabilities of productive loans to the formers of co-operative
societies for seeds, pesticides and fertilizers on easy conditions.
3) Mid term loan for the purchase of tractors in a co-operative societies.
4) Agriculture machine and tube well loans.
5) The loan up to 5 Lac for co-operative societies for the increment in the
industrial production.
6) Females may also benefit themselves by same facilities.
7) Availabilities of the loan for the development of Information Technology.
8) The launching of gold loan for general public and agriculture purposes at
Tehsil level.
COMPETITORS:
1) I.D.B.P.
2) A.D.B.P.
3) Muslim Commercial Bank Ltd.
4) Habib Bank Ltd.
5) Foreign banks like City Bank , Standard Charted Bank Ltd. etc.
Chartered Accountants:
Ilyas Saeed
Midsnell Group International
Legal Advisors:
Khan Ilyas
Mian Safdar Mehmood
Rab Nawaz Malik
Bank location:
Cooperative Bank Square,
Shahrah-e-Quaid-e-Azam(The Mall)
Lahore.
OPERATIONAL ZONES
For the convenience of the operations of the bank and providing more facilities
to the customers at or near their home town the bank is working with following
zones along with the head office at Lahore.
Multan Zone
Sargodha Zone
Faisal Abad Zone
Rawal Pindi Zone
Gujranwala Zone
Bahawalpur Zone
D.G.khan Zone
BOARD OF DIRECTORS:
Following members constitute the board of directors for general management
of the bank.
Registrar, Cooperatives, Punjab Ex-Officio President
Chief Auditor, Cooperatives, Punjab Ex-Officio President
34 duly elected members, one from each Distt. Member
Three nominated members by the Registrar Member
The board of directors has 39 members. A nominee of the Federal Bank for
cooperatives attends the meetings of the board of directors as observer. The
board of directors elect a vice president from amongst its members. The board
of directors may delegate all or any of the powers for proper and efficient
conduct of the business of the bank to the president, vice president, general
manager, any other responsible officer of the bank or a sub committee
appointed by the board of directors.
LIST OF PRODUCTS:
1) Shares capital.
2) Reserve deposits.
3) Securities.
4) External loans .
5) Investment.
6) Loans .
7) Reception of utility bills.
8) Reception of the application for the Pilgrimage (Hajj).
Human Resource Department is not directly concerns with the customer
satisfaction but its policies are the integral part of the bank achievement plans and
its policies ensure the right person to be hired, for the right and specified job,
trained, evaluated, giving incentives and hence by appointing right persons in the
different functional departments of the bank. So Human Resource Department
helps in the proper functioning of the products and if there are complaints against
the products of the bank or the customers are not satisfied with the bank products,
it takes measures in order to determine the job specifications, hiring of the
appropriate person or conducting the refreshing courses etc. and hence leading
toward goals achievement.
STAFF ROLE OF THE HUMAN RESOURCE
DEPARTMENT OF THE BANK
The Human Resource department of the bank operates in an auxiliary,
advisory, or facilitative relationship to other departments in the organization. Any
staff unit, whether it be personnel or otherwise, exists to help the line effectively.
It has been created in the first place to take advantage of specialized talent and
knowledge.
The H.R department of the bank generally performs the following roles:
1. Initiation and formulation
2. Advice
3. Service
4. Control
POLICY INITIATION AND FORMULATION
The executive in charge of the H.R.Department is the individual most actively
involved in policy revision to cover recurring problem or to prevent anticipated
problems. Ordinarily these are proposed to the president of the company, and it is
up on the latter’s authority that the policy is actually issued. When proposing a
new or revised policy the personnel director must analyze problem that have
occurred in the past, survey other companies to determine how they handle similar
situations, discuss the matter with colleagues and subordinates and give due
consideration to the prevailing philosophy in the organization.
ADVICE
A major portion of the activities of those engaged in staff personnel work is in the
nature of counsel and advice to line manager. Countless examples can be given. A
shop foreman may be confronted with a grievance over distribution of overtime.
Another foreman may have the problem employee who he feels should be
disciplined or even suspended. At the time of the annual review of all salaried
personnel for possible pay increases, the operating manager plays a key role in
advising operating manager on the administration of the program. An apparent
concerted slow down may occur in the assembly department. It may have been
instituted by the union in retaliation for the cutting of piece rates the week before.
How should production supervision handle this situation.
The H.R.Managers and their staffs are expected to be fully familiar with
H.R. policy, the labour agreement, past experience and the needs and welfare of
both the company and the employees in order to develop a sound solution.
Successful personnel specialist must be people centered. They must be feeling
sensitive, wants, and motives of other people. At the same time they must
continually be cognizant of their obligation to preserve the structure and
functioning of the organization. In fact, this really is the essence of H.R.
management. Management must seek to so direct and coordinate the efforts of the
people that the goals of the organization are achieved while at the same time
providing need satisfactions for the members of that organization.
SERVICE
The service responsibilities of the H.R. department are apparent when one
examines such things are as the employment, training, and benefits functions. The
tasks of recruiting, interviewing and testing job applicants are performed in the
H.R.Deptt.. Training programs are planned, Organized and often staffed through
the H.R.Deptt. H.R.Deptt must see that adequate instructional materials and
facilities are available. Once pension and insurance programs have been setup, all
claims must be through the H.R.Deptt. The maintenance of adequate employee
records is a service function that permeates all functional specialties within the
personnel field.
Control
The H.R.Deptt carries out important control functions. It monitors the
performance of line department and other staff departments to insure that they
conform to established personnel policy, procedures, and practices. The control
function of the personnel department is quite comparable to the activities of a
quality control group that measures product variables to insure conformance to
engineering specifications or to the activities of the auditing staff that inspects
accounting records to ascertain conformance with prescribed standards.
HUMAN RESOURCEDEPARTMENT
FUNCTIONS
H.R. Management activities are carried on both by the staff H.R.Deptt and
by operating management in the course of directing the activities of the work
force. Variation from the pattern described may occur in particular companies
because of special circumstances.
This function includes recruitment, selection, and induction into the
organization. The initial decision to add someone to the payroll is made by line
management. It is also its responsibility to determine the content of the job to be
performed and the employee qualifications necessary to perform the job
satisfactorily. Very commonly, statements of job content and employee
qualification have been previously worked out jointly between line management
and the H.R.Deptt. These are recorded in the form of job descriptions and job
specification. The H.R.Deptt must develop and maintain adequate sources of
labour. It must set up and operate the employee selection system, which may
include interviews, selection tests, a medical examination, and reference checks.
Quite commonly the role of the H.R.Deptt is one of screening with the final
decision to hire or reject being made by the supervisor who requested the new
employee. However, in the case of large-scale hiring program of unskilled or
skilled workers, the H.R.Deptt is commonly granted full and final authority to
make the hiring decision.
The new employee’s supervisor bears Important responsibilities for
introducing his/her to the new work environment. This is often called orientation
or indoctrination.
TRANSFER, PROMOTION, LAYOFF
For these tasks the H.R.Deptt serves primarily in a coordinative capacity.
When employees are moved from one department to another either because of the
needs of the business or because of individual requests, the personnel records may
be studied to ascertain that they posses the requisite skills. Layoffs typically are
processed by the H.R.Deptt to insure that the proper order of preference is
followed. This can become complicated of combinations of jobs, departmental,
and plant wide seniority rights must be observed. When a vacancy occurs in a
position, it may be filled by promotion from within or by direct hiring from
outside the company. This decision is often made jointly between the
H.R.Manager and the executive in change of the department where the vacancy
has occurred. Many companies may establish policies to cover matters of this type.
The actual final decision as to which candidate is chosen for the promotion is
largely made by the executive in whose unit the vacancy has occurred.
TRAINING AND DEVELOPMENT
On-the-job training and coaching are performed by the line supervisor or by
a specially designated employee who acts in the role of an instructor. It is the
responsibility of the personnel industrial relations group to determine training
needs in cooperation with the line management. Once the needs are established,
the personnel training specialists must design a program to accomplish the desired
results. If the program takes the form of in service class room courses, it usually is
administrated by H.R.Department. Coaching, performance appraisal, and post
appraisal counseling, job rotation, understudies, and special broadening
assignments are largely executed by operating managers but coordinated by a
central H.R.Deptt.
For those enterprise that are engaging in an organization development
activity the personal manager or the personnel staff.
For those enterprise that are engaging in an organization development
activity the H.R.Manager serves in a consulting role to an operating department.
He plans programs in cooperation with managers of operating departments,
diagnoses “people” problems, conducts various workshop type programs, and
provides feedback to the managers about ongoing problems.
COMPENSATION ADMINISTRATION
The work of designing and installing a job evaluation program is handled, for the
part, by the H.R. department with some consultation with line managers . The
decision to adopt a particular pay structure with pay grades and fixed minimums
and maximums for the grades is a top management responsibility.
The day-to-day work of analyzing jobs, evaluating their worth according to
a formal job evaluation plan, and maintaining suitable records is are
H.R.deptt.functions Periodic wage are conducted by the H.R.deptt, but any firm
decision to rise or change the entire schedule is particularly always reserved for
the chief executive officer of the organization.
HEALTH AND SAFETY
A significant part on occupational health programs is the identification and control
of agents within the working environment that can cause occupational diseases.
some agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat,
radiation, biological substances and stress. Industrial hygienists are employed to
identify and control such hazards to health.
Other important elements of an employee health programs are pre-employment
medical examinations, periodic examinations for those working on jobs having
exposure to occupational disease-causing agents, rendering of first aid, treatment
of minor ailments such as colds and headache, and providing health education
information. Small companies typically hire physicians, nurses and industrial
hygienists only on the consulting and part time basis. Large firms tend to be
staffed with full time personnel’s in these areas.
The safety program is directed toward the prevention of work injuries. The
main element are engineering , education and enforcement. The safety director
who I usually a member of HR department works closely with the plant
engineering unit to have machines and equipment properly guarded. New
production processes and machines must be o designed and constructed so that
possibility of human injury is remote.
DISCIPLINE AND DISCHARGE
Discipline has two principal meanings. In the first sense it means “training
that molds or corrects.” This means the achieving and maintaining of orderly
employee behavior because the people understand and believe in the established
codes of conduct. The second meaning of the term discipline refers to punishment
of wrongdoers.
The H.R. department commonly assumes the responsibility for formulating
the list of necessary rules together with the range of penalties for each together
with the range of penalties for each offense. Frequently this list of rules and
penalties is discussed and cleared with high-level line management before it is
issued and communicated throughout the organization.
Most commonly, actual approval by the H.R.department has to be obtained
before and employee may be discharged. The reason is that discharge is a very
serve penalty and should be used only when a very clear case can be shown. In
addition, it is especially vital to achieve companywide uniformity in the handling
of such cases.
LABOR RELATIONS
When a union has been certified by the national labor relations Board, as
the result of an election, as the sole and exclusive bargaining agency for the
employees, then management must bargain with it in regard to wages, rate of pay,
hours of work, and other conditions of employment. The principal tasks involved
in handling labor relations are contract negotiation, contract interpretation and
administration, and grievance handling.
The H.R.department plays very significant role in labor-management
relations. The director of industrial relation usually serves as a key member of the
bargaining team often acting a chief management spokesman. In operating on a
day-to-day basis under the terms of the labor agreement, line supervision often
finds frequently occasion to consult the H.R.department regarding such matters
like allocation of over time, handling of transfers and layoffs, and the application
of contract work rules.
BENEFITS AND SERVICES
Included under this category are pensions, group life insurance, hospital
and medical insurance, sickness leave pay plans, supplemental unemployment
compensation, loan funds, credit unions, social programs, recreational programs
and college tuition refunds plans.
The actual decision to establish or to expand these programs is
nearly always made by top line management upon the advice and consultation of
the H.R.department. The actual design of pension and insurance programs requires
a great deal of technical knowledge. These programs are generally worked out in
conjunction with insurance companies or insurance consultants. After these plans
are installed, the day-to-day processing of claims is handled by the
H.R.department
ORGANIZATION DEVELOPMENT
Organization development is a general approach for improving the
effectiveness of an organization that utilizes a variety of applied behavioral
science methodologies. Among the objective of the OD are to increase the level of
trust and supportiveness among people in the organization, enhance interpersonal,
skills, make communication more open and direct, directly confront problems and
to tap the knowledge of all who can contribute to problem solutions wherever
they may be in the organization.
Consultants are often involved in OD work they work jointly with
management to collect data, diagnose problems and work of solutions. Typical
kinds of OD activities are interventions are confrontation meetings, team
buildings, survey field, back conflict resolution, laboratory training and
managerial grid exercises and projects.
HUMAN RESOURCE PLANNING
Another new function that has emerged in recent years in human
resource planning (also) called manpower planning). Sometimes a specific person
or office has this as its primary responsibility; more commonly the responsibilities
are shared by several people within the corporate personnel unit. Human resource
planning is the process by which is a firm insures that it has the right number of
qualified persons available at the proper times, programming jobs that are useful
to the organization, and which provide satisfaction for the individuals involved.
The principal elements involved in human resources planning are as follows:
(1) goals and plans of organization; (2) current human resource situation
including skills inventory; (3) human resource forecast including comparison of
projected future demand for employees with projected supply; (4) designing programs
to implement the plans; and (5) audit and adjustment.
EQUAL EMPLOYMENT OPPORTUNITY
Very commonly the chief personnel executive in a company bears the major
responsibility for insuring that the organization complies with the various equal
employment opportunity laws and regulations. She or he often delegates the day-to-day
detailed administration to someone within the H.R.department who either specializes in
this field of work or who performs these duties along with others department such as the
employment function. Usually the chief executive officer (CEO) of a company, whether
she or he be called the chairman of the board or the president, plays a key role in the
formulation and implementation of equal employment policy.
PERSONNEL INFORMATION SYSTEM
Today, many organizations have staffs of people trained in mathematical analysis,
computers, and management information systems. Some companies have applied
these capabilities to personnel work. Among the applications have been human
resources planning, skills inventories, employee benefits analysis, and productivity
studies.
POLICIES OF THE BANK
The bank maintenance the account on cash basis under the historical cost
convention and are in conformity with the provisions of C0-opertive societies Act,
1925.
STAFF RETIREMENT BENEFITS
The bank operates the following schemes for its employees:
a) For employees who did not opt for the new scheme the bank operates the
following:
i) Approved contributory provident fun and
ii) An approved gratuity scheme.
NEW SCHEME
For new employees and for those who opted for the new scheme introduced 1986
for both clerical staff and for officers the bank operates the following:
i) An approved funded pension scheme for which monthly contributions
are made: and
ii) An approved non-contributory provident fund introduced in lieu of the
contributory provident fund.
TAXATION
Provision for taxation is based on taxable after taking in to account
applicable exemptions and rebates, if any, as laid down in the income tax
Ordinance. 1979.
INVESTMENTS
Investments in marketable securities are stated at market value. Premium
on Pakistan investment bonds are amortized over a period of ten years.
ADVANCES
Loans and advances are stated at their principal amounts, net of provisions
for loan losses. The specific provisions for possible loan losses have been made as
considered necessary after taking in to consideration the realizable value of assets
held by the bank as security.
TANGIBLE FIXED ASSETS
Fixed assets, other than land which is not depreciated, are stated at cost les s
accumulated depreciation. Depreciation is computed over the useful economic
lives of the related assets and charged to income applying diminishing balance
method except motor vehicles on which the depreciation is charged on straight
asset where the asset has been used for more than six months in the accounting
year. No depreciation is provided in the year of disposal.
Maintenance and normal repairs are charged to income as and when incurred.
Major repairs and improvements are capitalized. Gains or losses, if any, on
disposal of fixed assets are included in current income.
REVENUE RECOGNITION
Revenue from advances and investment are recognized on cash basis.
ADMINISTRATIVE HEAD
The administrative head of the Bank is general manager who controls the affair s of
the Bank on the basis of policy framed by the board or directors from the time to
time. The following executives at head office assist him.
Sr. No Name of Executives
1 Deputy General Manager
2 Chief Manager Human Resources Department
3 Chief Manager, Audit & Inspection
4 Chief Manager, Credit & recovery
5 Chief Manager, Board & Properties affairs
6 Chief Manager, Finance
7 Chief Manager, Legal and Advisory Services
RESERVE FUNDS OF THE BANK
The bank maintaining reserve funds, as on 30-04-2001, as under:
Sr. No Type of Fund Amount (Rs) million
1 Reserve Fund 298.248
2 Bad & Doubtful Fund 410.475
3 Building Fund 103.862
4 Other Funds 79.401
Total 891.986
CURRENT DEPOSITS
The bank held deposits to the tune of Rs 1,339.009 million as on 30.04.2001 the
bank up of which is given here under.
Sr no Nature of deposit Amount (Million) (Rs)
1 Current Deposits 83.946
2 Saving Deposits (PLS) 1042.095
3 Fixed Deposits 131.280
4 Other Deposits 81.778
Total 1,339.099
The cash balances including bank balance of the bank as on 30.04.2001 stood at
Rs 889.996 million.
A sum of Rs. 369.993 million has been invested by the Bank in Government
securities, Government Bank and shares of other institution according to the policy
laid down by the State Bank of Pakistan.
HUMAN RESOURCE DEPARTMENT OF THE
BANK:
The bank has won repute in the field of agriculture ,industrial loan and for the
daily life banking .It has been achieved only due to the proper and exact
functionality of the Human Resource Department .The Head of the Human
Resources Department is the general manager and his team comprises of chief
managers of different departments .
The Human Resource Department may advice the administration and the board
of directors on special issues of the bank and then it offers services in order to
accomplish the task. The human resources are the ultimate deciders provided
by the Human Resource Department. It not only gives advice , offers services
but also control the policies of the administration.
RECRUITMENT:
The department first determine the need of employees to be hired .The post
against each vacancy is advertised and then the applications are invited from
the applicants .If there is a post of manager cadre ,the general manager
personally is the interviewer of the interviewees along with his team .
TRAINING:
Then the qualified candidates undergo a training period under the banner of
Human Resource Department .There are co-operative training college at
Faisalabad and Bahawalpur Districts .Then the specified persons are appointed
against each specified post so the best results are expected and hence the
performance and good will of the bank is increased.
TRANSFER:
Human Resource Department of the bank also deals with the transfer of the
employees because the Human Resource Department knows the demands of
the job and the right person is employed over the right place by transferring
him to that post .
Health and safety matters are also handled by the Human Resource Department
in the bank. As there are no apparent dangers to the employees and customers
hence it is the responsibility of the Human Resource Department to see through
the matter.
EVALUATION:
The employees are then properly evaluated by different evaluation criteria and
procedures in order to motivate them and to enhance the performance .The job
appraisal system comprises of different questionnaire depending upon which
the whole system is forwarded .
UNION:
The union plays an essential part for the labor management relation .It bargains
with the management in the light of the demands of the employees .It is the
responsibility of the Human Resource Department which holds the formal talks
and the negotiations between the parties.
Human Resources Department is also responsible for the dealing with other
organizations running the same business.
Discipline and discharge is the necessity of each organization and it is
maintained by the Human Resource Department of the bank. If an employee is
creating problems for the administration for nothing, he may be warned and
depending upon the severity of the matter and allegation he may be suspended
and even terminated.
Work Place Training:
The work place training is the key factor of the policies of the Human
Resources Department .As the bank is public dealing entity so the work place
training is the integral factor for the good will and the status of the policies and
services of the bank.
REFRESHING COURSES:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by different
financial institutions and are attended by the staff members on the
recommendations and behalf of the H.R.Department Refreshing courses are for
the managerial and clerical staff. So they are equally and firmly evaluated and
enhancement of their capabilities is achieved.
PAY PACKAGES:
The packages are also determined by the Human Resources Department. These
are determined on the basis of performance, ACR, qualification and seniority
.It has comparatively low pay packages yet good ones.
The managerial posts are filled by the three methods by the Human Resource
Department.
1) Direct
2) Graduate
3) Non-graduate
The promotions are on the seniority cum fitness basis .So the qualified and the
efficient workers are supposed to come up to the top.
Human Resource Department also deals with the retention and firing of the
employees .In case of deceased employee, one of his child gets the job in the
bank .According to qualification and skills it ensures the employee benefits
.More over the Human Resource Department also cares for the old age benefits
of the employees .It is obvious that the Human resources Department is of key
importance and is playing a complementary role in the development and
promotion of the bank.
INFORMATION TECHNOLOGY:
The information system is the core of the operationing of the each and every
organization. If helps in the policy formulation and the running of the business
affairs properly by providing the 1st hand and accurate information. The whole
Human Resource Department functionality depends upon the information
system. Better the information system, better the Human Resource Department.
The Punjab cooperative bank has good information system and is serving the
Human Resource Department bitterly and efficiently and effectively.
WEAKNESSES:
1) The Human Resource Department is not up to the mark for the proper
appraisal system of the staff.
2)The policies of the bank are determined by the board of directors in
accordance with the H.R. Department. However there are certain policies in
which the Human Resource Department is dependent on the State Bank of the
Pakistan e.g. the mark up rate that is 14%.It limits its powers and dependency
is increased and risks are increased.
3) Employees have developed a psychology that promotion criteria &
procedures of the Human Resource Department of the bank are not justified.
4) The mark up rate in many programs is much higher hence creating the
problems for customer.
5) Human Resource Department is lacking employee training centers. There
are only two training centers at Faisalabad and Bahawalpur which are
insufficient for the training and refreshing courses of the employees.
6) If an employee wants to study during the job, he has to take approval from
the Human Resource Department of the bank, there are certain bottle necks for
taking such approval.
7) Proper evaluation of the employees is not in the normal functioning of the
bank.
8) Refreshing courses are on & off, not timely and frequently.
9) The proper information system is not in progress for the Human Resource
Department. The automation process by the Human Resource Department is
slow hence delaying the functioning of the bank.
10) Human Resource department lacks staff and it is very difficult for the
Human Resource Manager to do the right things for their organization and it
takes much time for normal working of the organization.
RECOMMENDATIONS
1) The Human Resources should take less time in recruitment and training the
staff.
2) Refreshing courses should be adequate and more frequent during the year.
3) The promotional criteria by the Human Resource Department should be
defined and be as per rules.
4) More training centers should be established. If there is lack of resources, it is
difficult, the training centers of the other organizations in the same capacity
can be utilized by determining the terms and conditions.
5) During the training by Human Resource Department the ethical values
should be more emphasized.
6) The proper and competitive evaluation of the methods and procedures
adopted by other competitors will enhance the performance of Human
Resource Department.
7) This is the era of Information Technology. The functions and procedures of
the bank should be converted from manual to the automatic. It will enhance the
performance of the Human Resource Department and ultimately of the bank.
Human Resource Department should allocate resources for this purpose.
8) Human Resource Department may advice and train employees for one
window operation in order to reduce the time and conserve the resources.
9) Agents for the promotion of the bank policies and to facilitate the customers
by the Human Resource Department may be appointed with proper check and
balance system.
10) Pay packages may be revised in the light of profit earned by the
Organization.
CONCLUSIONS:
No doubt bank is financial institute but the working substances are the human
Being .It goes with out saying that Human resources are the most important in
The organization and so does the Human Resource Department .It integrate all
The activities and functions of the bank like job analysis, recruitment, staffing,
Training, designing compensation package, employee’s appraisal system.
Human Resource Department plays the key role in the hiring, retention,
Motivation and promotion of the employee’s .Actually it assigns the specified
Duties to the specified persons in this age of specialization.
Human Resource manager should be well versed and confident in his field. He
Should be humane, well natured and have go face reading capabilities .All this
Ensures his success .He should be of the notion “victory is not the everything
But the way of fighting is”.