Hr Practices in Nbp

1Detailed study of HR practices at National Bank of Pakistan and its comparison with international best models” By Muhammad Azeem Ur Rehman EMBA CM-15/2009 2 EXECUTIVE SUMMARY The basic objective of the study is to understand the HR practices and procedures followed at NBP and World Bank. The reason for choosing World Bank is that it has one of the best HR systems in the world. It is also the most diverse organization in terms of cultural/ethnic, professional, as well as gender diversity. While the diverse nature of the bank is one of its strongest assets, it also presents the organization with its biggest HR management challenges. I wanted to have greater insight into the management practices regarding human resources followed there. The reason is to learn about the mission, vision, goals and objectives of the organization and their relation to Human Resources. The increasing trend of globalization in the past two decades has moved companies beyond their domestic operations into the international markets. This dramatic change in international businesses requires a dynamic workforce as such managers who have a challenging role in facing complex issues of managing people to gain or sustain a competitive advantage. Some key issues need to be given special attention. There will be more human resource activities involved in international operations than that in the domestic context. A broader perspective is required to manage people not only from home countries, but also from host countries and even from the third world countries. Therefore, the reason for choosing NBP was to study HR practices and how it can improve and update their HR systems. NBP maintains its position as Pakistan's premier bank determined to set higher standards of achievements. 3 SECTION – I HR PRACTICES AT NBP TABLE OF CONTENTS 4 TABLE OF CONTENTS SECTION – I HR PRACTICES AT NATIONAL BANK of PAKISTAN Introduction HR Mission/Values NBP organizational Structure (Organograme) 6 Hierarchy of HR and HR Divisions 7 Importance of HR at National Bank of Pakistan 8 Recruitment Process Selection Process Training and Development Motivational Techniques Evaluation Case Analysis 5 5 9 9 10 10 17 20 SECTION – II HR PRACTICES AT WORLD BANK Introduction WB’s Mission Statement HR at World Bank Recruitment Recruitment Process - Recruitment Clusters 20 Staff Exchange Programs Core Issues at WB Challenges Faced By Hr in World Bank 26 Analysis Comparison 19 19 19 20 22 24 26 34 Recommendations Conclusion 36 38 identified “TECHNOLOGY” and “SKILLED MANPOWER” as the top two challenges being faced by the Bank in its internal operations. technological oriented products and services offered through its large network of branches locally. mostly field functionaries.256 branches and 4 subsidiaries. The NBP realized the importance of upgrading the quality of human resource to meet the challenge of competition. • People make the organization • People collectively yield results • People have ambitions and aspirations to be distinguished and rewarded • People form the human capital to be developed and invested in. The challenge of lack of skilled manpower directly reflected on the status of HR base of the Bank. An internal survey was conducted to enable the bank employees identify the top challenges being faced by the Bank. There are 29 regional offices. It developed strategic focus to motivate the employees for higher performance and maintaining industrial harmony. Values: NBP believes that. The bank has a national presence with a history of contribution to their communities. Uzbekistan and Azerbaijan.5 INTRODUCTION TO THE ORGANIZATION Financial institutes play a major role in the development of the country. They are commonly referred as the backbone of the country’s economy. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies. In Pakistan among other banks and financial institutes we have National Bank of Pakistan as a major player that plays a main role in boosting the economy and providing thousands of jobs. China. It has 22 overseas branches in different countries of the world.Domestic /Overseas Branches: National Bank has elaborated network of branches in the country. internationally and representative offices. 1. National Bank of Pakistan is the first international bank to establish a branch in Kabul. It is the only Pakistani bank to have representative offices in Canada. 1 subsidiary and 1 joint venture with United National bank of England. The bank meets expectations through providing market-based solutions and products and rewarding entrepreneurial efforts and also creating value for all stakeholders HR Mission: Provide more talented Human Resource in all NBP functional areas in relation to competition keep motivated all the employees and maintain total industrial harmony. The employees. The Organizational structure of NBP is given below: . besides other important functions that it plays. This emerging Bank of Pakistan has the highest number of customers and is awarded the best bank award as well as the 9th bank in the world and 1st in the Asia. Point of Presence . 6 . Industrial Relations Wing has been set up to help stabilize healthy industrial relations and to ensure that conflicts at all levels are resolved in an amicable manner through bilateral discussions. With the huge investment in developing training strategies and programs. the question is no longer whether organizations should train or not. Relations Division Social Responsibility Division Qamar Hussain EVP / Divisional Head HR Division Muhammad Afsar SVP / Wing Head RecruitmentOutsourcing& . The subsidiaries of the wing are also expected to promote harmonious industrial relations in the Bank. government.7 HR group is composed of five main divisions. The growing importance of CSR has rewritten the relationship of business not just with shareholders. Mirza Abrar Baig Group Chief/SEVP Moizuddin Khan EVP/Divisional Head Training& Organization Development Division Muhammad Hassan Khaskheli Mohammad Iqbal Qasim EVP/Divisional Head EVP/Divisional Head Personnel& Industrial Sports Culture& Corporate . It is becoming an important constituent of the mainstream corporate agenda. supply chain partners. but also with other stakeholders including employees. but rather it is about whether or not training is worthwhile and effective PERSONAL & INDUSTRIAL RELATIONS DIVISION The department s headed by EVP (Executive Vice President). The training & development department is headed by EVP who is divisional head for the T & D division. Regulations Wing Muhammad Hanif EVP / Coordinator HR Special Projects Fazal ur-Rehman EVP / HR Coordinator A brief description of the different wings is given below: TRAINING & ORGANIZATIONAL DEVELOPMENT DIVISION Like other organizations NBP also has focused on the training aspect for its employees. CULTURE & CSR DIVISION Corporate Social Responsibility (CSR) is a significant concept in the arena of business across Pakistan India as well as around the globe. SPORTS. . Hierarchy of HR department at NBP is: HUMAN RESOURCE MANAGEMENT ADMINISTRATION GROUP & Dr. Training & Development in the NBP is a function to contribute in improving the overall organizational performance. It is the belief that T&D does not work since it is too difficult to prove its effectiveness in terms of calculating the Return on Investment (ROI) of T&D programs. 8. His core responsibilities are to implement: 1. Moreover. e.e.Employee Evaluation 2. 3. There are many examples of how businesses around the world use sport to fulfill their CSR objectives. 6. 4. OUTSOURCING & REGULATIONS DIVISION The division is headed by SVP / EVP. 7. The division is mainly responsible for recruitment process within the bank details of what are given in the following paragraphs. laundering the proceeds of crime 4. And sport is an important factor in this paradigm. Whilst pure sports sponsorship is often a hard-nosed marketing and business decision. to protect depositors) 2.8 creditors. To protect banking confidentiality . The Bank has a separate Wing which is headed by a EVP and the wing has totally engaged in aligning the activities of CSR. any CSR intervention is based more on how a business can improve the communities in which it operates. Strategic HR Management Managing Strategic Change Conflict Resolution Globalization and its impact on Human Resources management in NBP Customer Services in the Banking System (CRM) Synergetic Decision Making Leadership as a key factor in Human Resources Development Team work RECRUITMENT. In addition to being an effective CSR medium.Employee development and Training . sport builds values that any socially-responsible business strives for and instills qualities like team work and fair play. Prudential—to reduce the level of risk bank creditors are exposed to (i. Engaging in CSR is thus a desired investment in the 21st century knowledge economy to further the development process for a sustainable future. customers and communities. Avoid the risk used for criminal purposes.Benefits and Compensation . 5. 9. HR DIVISION The goal of the HR division is to prepare professionals who work in the National Bank Of Pakistan to deal with the complexities and challenges of HR and managing today's workforce. Specific HR functions include: .sports and cultural activities within the organization. The division is headed by EVP who is responsible to ensure that the latest HR tools are implemented within the organization. it involves employees and suppliers. Systematic risk reduction—to reduce the risk of disruption resulting from adverse trading conditions for NBP causing multiple or major failures 3.Recruitment and selection in the banking system . As for the regulations are concerned the most common objectives are: 1. as well as building good community relations.g. Each one of these has about 8 to 10 members whose job focuses on the particular duties of the wing assigned to them. The first one involves external selection and the second one involves internal selection process. If the applicants don’t meet these basic criteria. As the group HR chief is of the rank of SEVP (Senior Executive Vice President) and the wings he (Group HR Chief) heads can be commanded / headed by gentlemen who can be from VP (Vice Presidents) to EVP (Executive Vice Presidents). For external selection the bank asks IBP (Institute of Banker’s of Pakistan) to select employees for the bank. The main HR department has the following wings / subdepartments: • • • • • • • • Institutional Disciplinary Wing Legal Affairs Industrial Relations Wing Personnel and Administration Wing Recruitment and Compensation Wing Staff loans and Welfare Wing HR Policies and Project Wing HRM (Main Function. they are rejected right away. The criteria for example are to have a GPA above 3 on a 4 point scale and to have a master’s degree in either Finance or MSC. the organizations are destined to be doomed. . HR is a strategic function that is deeply connected with the overall strategies of the organization both long and short term. Recruitment Process: NBP has two procedures for selection.9 5. Credit allocation—to direct credit to favored sectors IMPORTANCE OF HR AT NATIONAL BANK OF PAKISTAN HR is a critical function for any organization’s survival. The bank places an advertisement in the News paper every year. Head Office) These sub-functions are assigned particular duties and their names are based on the kind of duties they perform. They work more like a team then as a function in the organization. the current workers are asked to refer people they know for jobs/vacancies available. Since it’s the people who run the organization and if they are not managed efficiently. For internal selection. The advertisement contains basic information about the nature of the job and the criteria that applicants must meet in order to qualify to be potential candidates. At the final interview the panel conducting interview focus on the personality traits of the candidate. The candidates sent to IBP after initial scrutiny go through written test at IBP. TRAINING AND DEVELOPMENT: . The selection process at NBP for the MTO’s (Management Trainee Officers) is based on written tests and GD (Group Discussions). Selection Process: The selection process at NBP involves various steps. After which their CV’s are refereed to IBP for further tests and interviews. NBP sends this list of candidates to the head office. After the interview and group discussion. IBP further short list the candidates. which include: • Discussion on Topic: Candidate is given a topic. Candidates are invited to the head office for the final selection. In the group discussion candidates are divided in the groups.10 Then the bank conducts the initial screening. The written test conducted at IBP consists of GMAT. In these groups. Those candidates that are short listed after the written test at IBP. candidates are asked to perform different activities. The list of the final candidates is sent to the NBP. Head of all the departments along with HR head conduct final interview of the candidates. But the same procedure for hiring experiences staff does not evolve the same testing procedure and also it does not include questions to test their banking knowledge as well. Those candidates that have been referred to IBP go through different tests and interviews. The candidates hired after this process are known as management trainees. to check the soft skills of the candidates. IBP stands for Institute of Bankers of Pakistan. are invited for the group discussion. They are OG3 officers. A group of experts judge the communication skills and reasoning ability of the candidate. • Interview: Panel of the experts conduct the interview of the candidate. those who pass the test. GRE and questions related to management and mathematics. Karachi. (grade 3) CRITIQUE Although NBP uses online application system for job placement for the management trainees and has conducted job fairs at various business schools but there is not a routine practice for talent hunt. this group discussion also takes place at IBP. IBP is an agency formed by different banks. After selection these employees are trained by NBP. and check whether candidate has a presentable personality as he had been checked for the skills and abilities by the IBP. IBP short lists the candidates. he/she has to speak on the topic. The written test and GD is designed to test their overall intellectual capacity rather than their Banking knowledge. The function of the IBP helps the bank for the selection of employees. JOB EXPERIENCE: Transfers: After the completion of three years at a branch. Training is conducted for internal employees as well as employees hired as management trainees. which will help the firm to constantly adapt to changes in technology. where technology now plays a major role. Once this initial training at IBP is completed. On the job training lasts for about 12 months. This is the first post the management trainees get right after their training. This training is based on general banking concepts and theories and is theoretical in nature. This post is called OG2. Employees can. This training at Staff College lasts for about a month and a half and is also theoretical in nature. Recently a foreign expert from banking visited Pakistan and NBP employees were sent with him to the Northern Area of Pakistan. and the business environment in general. Their practical and on the job training starts right after their initial placement. This initial post is commonly referred as management trainee. The purpose is to expose him to the various banking operations at various branches of NBP. For example FIA. During this training the manager of the respective branch is directed by the management to rotate the new management trainees in the different departments. The management trainees selected are required to go through different stages of the training. The transfer process repeats after every 3 years. NBP has a strong belief in training its employees and developing them and it spends a huge amount of money in this regard every year. employees are rotated in different departments of the particular bank branch to get the basic knowledge and idea about operations in each department. . Effective training will lead to the organization having premium employees with enhanced skill sets. The duration for various employees sent to other organizations differs. Externships: Employees at NBP are also sent to different organizations availing NBP’s services. upon finishing they return back to NBP. After they return from staff college employees are given placements in different branches of NBP. Team Building: NBP is changing its culture and focus is more on team building. contact their manager for any problem faced at work. trainees return back to the NBP head office and are sent to the staff colleges of NBP. Once this training is completed. Mostly the duration last for 2 years. Employees are sent to the different branches for on job training.11 Training at NBP . especially in the banking sector. It was not an official visit to Northern Areas infact its purpose was to develop relationship between employees to work in teams. It also ensures that serious succession related issues do not creep up. NBP doesn’t allocate newly hired employees any mentors to guide them. however. employee is transferred to other branches. During this one-year training program on the job.Brief Overview: Training has multiple advantages that an organization can have. which are: Initial training that lasts for about 3 months at IBP. regulation. they are appraised after one year and based on their performance they are chosen as permanent employees of NBP. The process of succession planning and internal promotion is a great source of motivation for employees. employees are promoted to higher level in the hierarchy. which motivates employees into working hard to progress and achieve advancements. To appear in the test. certain pre-requisites have to be met. only 163 are selected and promoted.General: Successful candidates of this category are posted in any key area of Bank’s operation.All candidates between and at same grades are required to take same test. where the potential candidates go through the tests for promotion. . The exam is very competitive. For example. This is part of their internal promotion program. There are 2 types of tests taken different level of employees: For employees at Grade1 till Employees at Grade 3. This test is made for AVP’s and VP’s. • NBP Talent Pool. duration and nature of the program so that right individual for the right training at a right point in time can be inducted which apparently has not been observed there in NBP Compensation and Benefits: The trainees are given an attractive package. Their basic salary starts from 27000. Every year a test is conducted which potential employees have to clear in order to get promoted to a higher level. its timings. Upon clearing the tests. employees are also sent abroad for training conducted in foreign countries. Out of 1500 employees appearing for test.IT: Successful candidates of this category are posted in I.12 Talent Pool: All potential employees at NBP are given a chance for promotion. the OG2 officers have greater chances of getting promotion after 3 years and becoming the branch managers. For promotions at higher level of hierarchy. CRITIQUE The intranet can also be used for updating any HR news at the site SPECIALLY letting the employees know about the upcoming training program. This culture of promoting employees internally motivates and encourages NBP’s current employees to work hard and achieve their targets. only those employees having MBA degrees or MSC in Economics can appear for the test. For example. They avail other benefits such as interest free loans. They are commonly referred as the Talent Pool.T related operations. that is OG1. The number of people appearing for the test is called Talent Pool. There are a lot of chances for internal promotions. There are 2 categories of Talent Pool: • NBP Talent Pool. candidates are given a different test. All successful candidates are entitled 10% increase in their basic salary. To continuously enhance the level of performance of employees and attain the optimum level for ensuring growth of the organization. To secure future of the Bank. Regular increase in the pension of retired employees to give them a feeling that NBP care for them even after their separation. President’s Dialogue Sessions. Employment to the children of the retired and deceased employees. Performance Bonuses to create high performance culture in the Bank. needs and wishes. Managing employee motivation is always an extremely complex task. desires. There is also an increase in the benefits provided to them. MOTIVATIONAL TECHNIQUES Human motives are based on needs consciously or sub-consciously filled in individualistic hierarchical order. hired 1000 MBAs on merit (300 being females 30%). Some of the steps NBP has taken to improve the motivational level of its employees so that they can contribute best to the organization. unseen in the banking and other industries in the country. Record increase in House Building and Car Loans in last two years. The raise is about 10% to 15%. depending on the inflation prevailing in the country. For employee motivation. it is the primary responsibility of all HR practitioners to continuously maintain employee satisfaction and high motivation levels. Education. NBP shared this gain with employees through raising their salary by almost 200% since 2002 and it is again going to be reviewed effective 2010. Initiated Talent Hunt Program which enabled talented employees (about 500) within the Bank to take up key positions and provided great encouragement by opening new avenues for the existing employees based on merit for key internal and overseas postings Improved Employee Communication through NBP Newsline. highest in the industry by:      Introduction of various new benefits and extension of existing benefits to the employees in the areas of medical and other allowances. Employee Communication Program etc. are:  With increase in Bank’s profitability. 99% of employees were promoted to higher grades. loan facilities.13 The employees ‘pay package’ is revised every 2 years. The NBP utilized all HRM tools for enhancing employees’ motivation thereby contributing to bank’s record growth. Almost every employee has received either one or two promotions and in some places three promotions.   For Top Performers.    Promotions & Career Progression: . Generally motivation includes the entire class of drives. health. all of which are different for different individuals and further differ in their importance at various times for the same individual. Management Brief. This step was taken to satisfy the genuine aspirations of the employees which is unparalleled its uniqueness. Besides the favorable packages. Performance Appraisal System & Pay-for-Performance: Performance Appraisal System has been revised to replace the traditional subjective ACR to provide more objectivity in evaluation and recognizing merit. This step was taken to satisfy the genuine aspirations of the employees which is unparalleled due to its uniqueness. This quantification and measurement of each HR activity has resulted in substantial improvement in internal efficiency thereby contributing to employee satisfaction and motivation. each employee of HR has been given specific responsibility with agreed upon standard time for each activity. This system has been implemented with effect from January 2007 for all executives and contractual employees. Promotion of employees who perform well are made strictly on the basis of merit and in the most transparent manner. The policy of spot award is basically for recognizing individual employees for their one-off excellent performance. which is vital for motivation and innovation. To ensure compensation levels of bank employees in relations to the market. Such promotions have been made a regular feature so that high performing employees are rewarded and their efforts in the growth of the bank are recognized. 99% of employees were promoted to higher grades in the recent past. 2006 and 2008 were negotiated and implemented to the complete satisfaction of the employees and in the best interest of the Bank. Almost every employee has received either one or two promotions and in some places three promotions.14 For employee motivation. staff loans benefits have been improved through enhanced financing limits and reduction in mark-up. to measure the HR performance. Pensionary Benefits were enhanced to retired employees or their widows to emphasize bank’s tradition of employee care. Through involvement in the implementation process. This was a major accomplishment in view of the highly charged intra-union and inter-union rivalries compounded by the transition of HR responsibilities. salary surveys have been conducted and salary adjustments are being made wherever required. unseen in the banking and other industries in the country. Bank’s internal customers: In order to provide maximum satisfaction to internal customers. Employee Compensation: Pay Packages 2004. Achievement & Spot Awards: A merit based culture has been established in the Bank through implementation of achievement and spot awards for individual employees showing exemplary performance during the year or in an assigned task. Employee Communication: Communication channels within an organization play a very important role in involving the employees to participate in the implementation of policies. Based on the evaluation of individual employees as per their performance appraisal a system of pay for performance is being implemented to properly compensate relatively high performing employees thereby strengthening the merit based culture. The achievement award policy of the Bank is a transparent system for rewarding high performing employees through achievement awards to 10% of the total employee strength every year. Liberal payouts of Profit Bonuses were adopted to provide a sense of participation amongst the employees in achieving high profits. employees feel motivated to perform and establish their contribution in the . The performance of the individual HR employee is then continuously monitored for the actual time taken for each activity against the standard set. The manager does not consult his peers or the employees for information on employee’s performance. Industrial Relations Conferences were held to build better understanding of IROs and Management Policies to ensure continuing harmonious environment. The employees have their own intranet. Further the Bank intends to launch a “NBP Management & Leadership Development Scheme” for internally skilled and qualified employees of the bank for placement in middle and higher management level positions in future. The empowerment of Regional Management Teams and Managers of branches through enhanced discretionary powers for prompt decision making and assumption of higher responsibilities has motivated them to ensure high performance levels. This has to be ensured through developing a mutual respect between the management and employee representatives. The manager is chosen because he has all the information about the nature of the job and the employee performing the job. This system however has greater chances of biasness and favoritism and for this reason NBP is planning to introduce the Bell Curve Method for employee’s evaluation. Industrial Harmony The implementation of all HR policies depends to a great extent on continuously maintaining industrial harmony within the organization. They should be avoided at all levels. managers decide their employee’s professional fate. These leadership positions were filled through a systematic selection of RMT Members on merit in a most transparent manner and after qualifying a rigorous selection process involving written test. Based on these documentations. Leadership Development: After reorganization of the bank’s field structure and decentralization of powers. Performance information Source: The immediate boss (The Manager) writes this report every year when performance appraisals are due. This report is submitted on 31st Dec every year. The intranet however lacks other information which employees should have access to. The written documentation is forwarded to senior managers for promotions and pay-raise. These trust building measures included maintaining a continuous dialogue process with CBAs and Officers representatives. Conflicts and its Resolutions: Conflicts lead to a non-conducive and unfriendly environment. which is only used to emailing purpose. and if they do take place. In future Industrial Relations Conferences are also under review. Regional Management Teams (RMT) were formed at all 29 Regional Offices. Additionally Employee Communication Program involving meetings at Regional Offices for Staff are planned to create better awareness of management policies and bank’s tradition of employee care. Dialogue Sessions with field functionaries of high value branches with the President have been held and constructive suggestions incorporated. With a view to establish top-down and bottom-up communication. there should be a quick remedy for it. Further to make the employee communication more effective regular publication of NBP NEWSLINE on quarterly basis and MANAGEMENT BRIEF on monthly has been introduced. group discussion and interviews. Mutual respect between Management and the CBAs as well as Officers representatives at NBP has been strengthened through trust building measures. .15 overall growth of the organization. which tries to resolve the issue. For example when the employee comes late to work. If the employee continues to be late for work. but these issues are not dealt with a formal procedure. • Unexcused absences. the parties to the conflict try to resolve the issue at their own level. And an inquiry is initiated to find out what problems do the employee has due to which he can’t observe the rules set by the organization. A copy of the written warning is sent to head office also. if there is a case of late comer. In most of the cases. therefore the employees must observe their duty in the correct manner. files. If the issue isn’t resolved at this level. • Willful violation of bank policies and/or procedures. • Conviction of a crime. however. If the employee continues to be late for work. or bank policies. . first an informal and then a formal warning is given to the employee e. an official warning is sent to the regional officer and the employee.16 At NBP. then the problem is taken to the head office. customers. fellow employees. When there is a conflict between managers or a manager and his subordinate. • Lewd or discourteous behavior or any other conduct which injures the public reputation of the bank. • Disclosure of confidential information. • Intoxicated on the job. • Refusal to obey a legitimate direct order from a supervisor. he is issued a written warning. or otherwise improperly using one's bank position for personal gain. branch manager is involved. Again the copy of memorandum is also sent to head office. Failing to do will. After 3 red lines have been added to his name. Warnings and Termination: In case there is any disciplinary issue. management can take action against the employee if he has been involved in any of the above. "kickbacks''. • Disregard for or violation of bank policies and/or procedures. Progressive Discipline Program: Employees of National Bank of Pakistan are expected to take a positive. • Adverse attitude toward the bank. • Intentional falsifying of records. the manager adds another red line to his name. • Accepting of bribes. the manager puts a red line under his name in the office maintained register. there are no formal committees or teams made to resolve such issues. At the third time. result in some kind of disciplinary action taken against the employee. Two such warnings are given to the employee. one of the employee is transferred to other branch to minimize the contact with his previous manager. he is given an oral warning. Conflicts do take place. responsible approach to maintaining high standards of conduct and work performance. securities. It is generally recognized that special trust is placed by the general public in a financial institution. or documents of the bank. records. he is issued a memorandum. A memo is sent to the employee asking for an explanation. without involving higher authorities. Following is a list of serious offenses requiring disciplinary action up to and including dismissal: • Insubordination. • Use of drugs or "high" on drugs while on the job. The process of progressive discipline program starts with an oral warning. a red cross is made against the name of that employee on the attendance register. Upon repeating the same behaviors.g. If the branch manager is also unable to solve their issue. • Using these criteria. • Deliberate misuse or mishandling of moneys. The meetings held at head office has directors representing every department. The maximum relaxation of 90 days is allowed to avail the leave in the following years. to the extent of ninety days in all from the date of its commencement. Casual Leave (CL) 20 days per annum: Twenty (20) days Casual Leave is allowed to Executives/ Officers per annum and un-availed Casual Leave up to a maximum of 15 days is allowed to be encashed. The top management never considered taking opinions from the HR department. when applied for a period not exceeding 130 days.(including HR). a female employee may be granted Special Leave on full pay. outside the leave account. the Female employee would have to take leave from her normal leave account. For confinements beyond the third one. Since the company has recently introduced many different products. Such leave shall not be debited to her Leave account. along with her application for special leave. the HR department has gained significant importance. the said certificate may be furnished to the leave sanctioning authority separately. whichever is earlier Maternity leave may not be granted for more than three times in the entire service of a Female employee. Sick Leave (SL) 18 days per annum. . The Leave shall commence from the date of death of husband of the employee and for this purpose. for example SWIFT system (Society for Worldwide Inter bank Financial Telecommunication) that facilitates speedy services in the area of home remittances.17 Leaves: Privilege Leave (PL) 30 days per annum: Thirty (30) days Privilege Leave per annum is allowed to Executives / Officers and PL to be availed within a year on becoming due. Special Leave (for Female employees): On the death of her husband. or forty-five days from the date of confinement. the HR department suggested that new employees need to be hired and the current employees need product training and also training for new systems introduced in the company. The analysis of the HR practices at NBP is given below: HR role in the strategy formulation: NBP HR department has been working for many years but it was only involved in the routine administrative tasks. II & III at the end of the year. or if that is not possible. NBP top management has also introduced major changes in the HR department. Maternity Leave: A Female employee may be granted maternity leave on full pay. to OG-I. EVALUATION As the role of HR is changing in the organizations. Eighteen (18) days sick leave is allowed to Executives/ Officers and Un-availed Sick Leave accumulates and becomes part of the Leave balance. Ever since the changes have been introduced. its content. It only mentions subject studies. It properly evaluates the training program. NBP hire every year new employees. The HR director emphasized that employees need training to run the system. The basic technique used is through job experience. NBP employees were offered golden handshake offer. These forms evaluate are used to take feedback of the employees as whether training program as of worth for them or not. NBP reduced its total number of branches in 2002. As mentioned in the findings. Their current strategy is to increase its branches worldwide and to increase its product line. Development of Employees at NBP: NBP focuses on development activities of the employee. These employees get the same benefits as the permanent employees. These employees are known as contractual employees. This signifies that the company has an integrative linkage between the top management and HR department.18 The system has built-in features of computerized test keys. If labor surplus occurs in the NBP. for example whether or not the courses taught were relevant to their job. this was done because the management realized that there were some excessive staff in the bank.. NBP uses different techniques for the development of employees. and transferred to different departments and regions of the NBP in order to develop them for . 2004 the bank increased the number of branches and new employees were also hired. thus the training sessions were introduced for employees to enhance their computer skills. course duration and the instructor's name. which eliminates the manual application of tests that often cause delay in the payment of home remittances. the methods used to provide training. and would hire till 2010 according to the target. This was a wrong forecasting done by the HR management because later they re-started the branches that they had closed. NBP offered early retirement program to its employee. The course evaluation form is very general. Evaluation of Training Programs: The training methods are evaluated on cognitive outcomes. Labor Forecasting: There is no such mechanism used by NBP for the forecasting of the labor surplus or the shortages. In 2003. as in the mid nineties NBP was given directive by IMF to reduce its employee. This form doesn't help evaluate the course taught properly. NBP also hire temporary employees on the contract bases. It doesn't ask for any comment on the courses offered. it was an option for employee to avail. as no one was terminated by force. Again the HR department’s input was being considered. The employees are rotated. the extent to which the subject taught has been covered. general administrative arrangements. NBP hire new employees according to their future strategy. Thus they have expansion as target. But there is no such formal method used by NBP to evaluate the performance of the employee after training. The total number of employees were also reduced due to the closing of some branches. Thus NBP check that whether employees have retained what they learned during training and employees are also given forms to evaluate training forms. The form used to evaluate the training program is quite comprehensive. and its execution. The employees feel job security at NBP. This offer was not forced to certain employee. These evidences show that the director HR department’s opinion is now being considered and valued. the company needs more employees to meet the requirement of the 2010 plan. (There is no other authority that keeps a check on manager. Performance Evaluation at NBP: The evaluation of the employees is done on the attribute approach. Employees are also motivated by benefits. if an employees increase his/her skill (higher education. Compensation and Benefits: NBP management pay a decent pay scale for the OG3 (new employees. This has a greater potential for biasness since managers can favor or penalize an individual unduly. again manager has all the liberty to write what ever he pleases for the employees he is evaluating. as it might hinder to spot the right talent.this gets jeopardized at NBP.20%.As far as the salary package is concerned.) Some of the employee refer ACR as ATR (Annual Torture report). NBP has a policy that if the clerical level staff gets an MBA degree or a special banking exam.e. It is important .Although the talent pool at the NBP is part of succession planning but keeping in view the pros and cons of the succession planning . For performance evaluation. NBP has its own annual confidential report (ACR). as each and every employee gets an opportunity to get promoted if qualified. The manager in the end of the year has to Annual Confidential Report. The employee at NBP are very much motivated by the introduction of this plan. This increase ranges from10. But some of the employees think that the selection for the talent pool is not completely done on merit basis. as in the case of FIA mentioned in the findings. They think that it depend solely on the respective manger who write ACR rather then on performance. they get a specific increase in their pay and are given monetary assistance too. At the managerial level this practice is not being followed. Rs. Succession Planning: The practice of succession planning at NBP is not done in that sense as it should.000). The employees are promoted after 2-3 years based on the performance. Thus NBP uses externship as development. Every year a specific amount of profit is shared among all the employees. NBP also share profit among the employee on a yearly basis. This is a drawback for the NBP. NBP doesn’t allocate mentors to the newly hired employees. the source of information is solely managers. Employees refer to their manager for problems they face on the job. The compensation process of the NBP is based on the performance. NBP give benefits in the form of cash to the best employee of the years.19 future. This profit at maximum consists of 1 basic salary. The employee is rated on the different traits. The development program such as talent pool is very effective for the NBP.). it is revised after every 2 or 3 years. the management wants the employees to consider themselves to be a part of the team. Thus employees are satisfied that there are ample chances of promotion at NBP.27. The organization (NBP) is benefiting by the program as it helps NBP to identify talented employees within the organizations. The congruence between the report an the strategy is also low. There are very few hires from outside the organization. Pay System: The basic salary of each employee is increased every year. By doing this. The organization has internal promotion programs. NBP also send its employees on for temporary assignments to other organizations. i. This report resemble with graphic rating scale. this shows that employee do not trust evaluation method. Thus reliability and validity of this report is very low.Thus NBP has very good system of benefits for the employees. The employees of the NBP think that it is not easy for the management to terminate an employee for two reasons. Intranet: The intranet used at NBP is only for email purpose. Conflict Resolution at NBP: NBP’s management uses open policy for the conflict resolution. Firstly it is a lengthy process. as if a conflict arises between two employees. If NBP takes decision to terminate an employee. If the employee does not change behavior after these official warnings then the inquiry is initiated. The conflict some times prolong for quite some time.20 that the people at higher level should also be given some monetary assistance or increase in pay after they attend a training course. that employee has right to appeal against decision. Termination Process at NBP: The termination of the employee at the NBP is done through progressive discipline program. NBP is planning to launch an EHRIS system. It is positive in a sense that employee feel job security. But there are no teams or any formal conflict resolution techniques used for this purpose. This has both positive and negative aspects. though it is a rare case. Secondly employee has full right to challenge the decision. which leads to loss of productivity till the time conflict has been resolved. . The inefficient system of snail mail still prevails at the company to inform employees of the various occasions and activities being held in the company. But it is negative as termination is not that easy. If employee repeats the offence then he/she is given official warning. Employee is given chance to appear and explain his/her point of view. The employee is given unofficial warning for the first offence as mentioned in the findings part. their immediate boss or another peer try to resolve conflict among those employees. The company has not fully developed an EHRIS (Electronic Human Resource Information System) This system helps to keep employees updated about their personal profile and the current activities at the company as a whole. it would be better that this system is launched as soon as possible. Second official warning is given on the third offence and the copy is sent to the head office as well. an employee might not change his/her behavior as required by the organization. I would like to compare the same with international best model – World Bank. As we know that in NBP the sources of profit are not aggressive banking operations but the high growth rate in GDP from 2002 to 2007 and the subsequent increase in revenue are the major source of profit.a public sector bank’s HR practices of a developing country like Pakistan to that of the world’s most modern financial development organization (WB) with its international best practices will be an imbalance but we just will see the HRM perspective and try to draw some lessons out of it.we can compare its HR to any financial sector organization around the globe and that is the reason I have chosen WB for the purpose. there is no pay for performance. They do not believe in empowering people. public sector do not think HR is important for them. NBP as we all know is the only public sector bank. . After privatization these banks have been transformed as efficient organizations.21 CASE ANALYSIS After having analyzed the HRM practices at NBP in detail. It cannot be compared with MCB or HBL. annual increments are given but having seen the progress NBP over last decade. Although comparing . International Best practices are in Private Banks. 22 SECTION – II HR PRACTICES AT WORLD BANK . The Bank is always actively involved in financial sector restructuring and regulatory work. The bank has 109 Country Offices. building capacity and forging partnerships in the public and private sectors. excite. Together they provide low-interest loans. and nurture diverse and committed staff with exceptional skills who know how to listen and learn. They are economists.000 of the employees work in country offices in the developing world. Each institution plays a different but supportive role in the bank’s mission of global poverty reduction and the improvement of living standards. Approximately 3. interest-free credit and grants to developing countries for education. financial analysts. educators. sharing knowledge. infrastructure development. continuing to help nations move towards market-based economies through financial sector restructuring.23 INTRODUCTION TO WORLD BANK The World Bank is a vital source of financial and technical assistance to developing countries around the world. health. privatization and regulation. DC. WB’s Mission Statement: “To fight poverty with passion and professionalism for lasting results. To be an excellent institution able to attract. anthropologists. They apply their skills and the bank's resources to bridge the economic divide between poor and rich countries.000 development professionals from nearly every country in the world work at the World Bank in Washington. environmental scientists. to turn rich country resources into poor country growth and to achieve sustainable poverty reduction. The World Bank is made up of two unique development institutions owned by 184 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). infrastructure. To help people help themselves and their environment by providing resources. engineers and many others.” HR AT WORLD BANK Around 10. The IBRD focuses on middle income and creditworthy poor countries. . while IDA focuses on the poorest countries in the world. communications and many other purposes. the country offices undertake these appointments. both at headquarters in Washington. international recruitment may be authorized by the Senior manager with the consultancy of the manager. The President of the World Bank is simultaneously the head of all five arms of the World Bank Group. • Local Recruitment: Local hires do not require global mobility and international experience. Postions at grades GF or equivalent and above are subject to international recruitment. or private sector development-and 13 others-covering such areas as external affairs. the Senior Manager may authorize local recruitment with the concurrence of the Manager. . Latin America & the Caribbean. DC. Staff Planning: • • • Unit managers identify Washington-appointed vacancies for which they consider external candidates. September and January. The World Bank organizes its operations primarily through 27 Vice-Presidential Units. Europe & Central Asia.Recruitment Clusters: The vacancies for which the managers consider external candidates are advertised in clusters three times a year. May. Human Resource Team and the IFC manager. legal. These are positions where global mobility and international experience are essential. Human Resource team or the IFC manager. Six regional vicepresidencies control a large-degree of decision making on Bank operations within their own regions: Africa. In these positions. DC. The World Bank is the third largest employer in Washington. Recruitment : Recruitment at World Bank is done through a centrally managed process to ensure that the Bank Group maintains consistent institutional entry standards and stability in the overall staffing levels. • International recruitment: Global mobility and international experience are essential for International hires. these appointments are for positions in World Bank Group headquarters in Washington. Recruitment Process . The World Bank Group hires both internationally and locally.24 Nearly 9. Other vice presidencies include 7 "Network Vice Presidential Units"responsible for certain cross-cutting issue areas such environment. and human resources. In circumstances where positions do not require global mobility and international experience. or global mobility and international experience are essential. global mobility and international expertise is not required. In circumstances where required skills cannot be obtained by local recruitment. Middle East & North Africa. East Asia & Pacific. and in over 100 country offices. financial sector. Recruitment. Local recruitment in the country offices ensures depth of country knowledge practice and is the critical complement to international recruitment. open-ended or term HQ or CO appointments Individuals on extended-term and short-term appointment are external candidates. Positions at Grade GA-GE or equivalent are subject to local recruitment.000 staff members perform the work of the IBRD and IDA. and South Asia. development economics. DC. Internal candidates are individuals on regular. The secretary of the ACS HR Committee is available to the sub-panels for consultation and guidance. Job Descriptions Job profiles are used to prepare and review job descriptions for each vacancy. Each sub-panel comprises of: • One representative from each of the hiring units of the jobs in the groupings designated by the hiring manager 2 ACS Network representatives selected by the ACS Network 2 HR representatives. A panel is then constituted for each of these groupings to review and prepare the shortlists for the jobs in that grouping. including staff from other job streams. Longlisting: The Talent Search and Partnership Program (HRSTS) is responsible for reviewing and assessing external candidates including applicants currently on extended-term and short-term appointments. term.25 • • Other external candidates include agency temps. Cluster of vacancies are sub-divided into groupings of similar jobs. The Vice president confirms that these vacancies to be opened for external recruitment have been reviewed. The final longlists are submitted to special shortlisitng panels established for this purpose. costed and approved as part of the VPU’s overall staffing plan. etc. Shortlisting: Special panels are responsible for preparing shortlists of candidates from which hiring managers make their selections. • . Candidates who pass the tests constitute the final longlists. Level GC Office Administrator and all Level GD positions. extended-term and short-term appointments apply through myJobWorld whereas other external candidates apply through the external web job posting. HR teams review the job descriptions for consistency with the ACS job Profiles and prepare the job announcement in draft in myJobWorld. Candidates on regular.Worldbank. the recruitment recognizes the bank’s need for candidates with integrative skills focus on results the ability to work effectively in multi-sector teams and with partner agencies and country counterparts and an adverse background aligned with the bank’s diversity objectives. Candidates must pass these tests in order to be considered for shortlisitng.org). The HR committee also reviews job descriptions for Level GC Executive Assistant. For technical specialists. The HRSTS then prepares initial longlists of the most external qualified candidates and arrange for testing of these candidates through the vendor contracted by the bank to administer these ACS tests. He also refers policy matters to the Committee itself. Job Posting: Job announcements are posted in MyJobWorld on the Bank’s intranet on the Bank’s external website (www. contractors and those who have no current employment relationship with the World Bank Group. All internal candidates are automatically longlisted unless they are required to take and do not pass the ACS tests. External recruitment is conducted by first identifying sector-wide skill and diversity needs and then identifying targeted candidates to meet these needs. country offices. open-ended. HRSTS also identifies and arranges for testing of internal candidates who have not previously passed the required ACS tests. with particular focus on the private sector. Young Professionals have the opportunity to strategically select their rotational assignments so that they can maximize their learning and exposure. Some Young Professionals take up rotational assignments in one of our country offices based in a developing country. Since then.Rotational Assignments: Most Young Professionals take up two rotational assignments in different units in the World Bank. These trips present opportunities to experience first hand the challenges of development and also familiarize Young Professionals with the World Bank's clients. They are usually a member of a team. HRS keeps a track of progress of short-listed candidates. particularly those who are shortlisted for more than one vacancy and coordinate offers if a candidate is offered more than one position. and unions. which is an important aspect of our work. the Bank has collaborated with more than 200 organizations. NGO’s and advocacy groups. SEP seeks to achieve several key objectives. where they gain valuable on-the-job experience. universities and research institutes. where they are expected to make significant contributions towards the unit's work program while they gain a broad overview of the World Bank's policies and work. The Staff Exchange Program (SEP) was launched in 1995 as a way to leverage the skills of World Bank staff and foster cultural exchanges with their partners in the development field. The concept of exchanging staff with partners in the private sector and elsewhere was seen as a way of sharing knowledge and building new perspectives to help spur development for the world’s impoverished. . These partnerships have included other international financial institutions and development banks. Ex-Post Review At the conclusion of the selection process.26 Interviews and Selection: Hiring units are responsible for interviewing all shortlisted candidates and making their final selection with the supoort of HR teams. government agencies. private sector companies and consulting firms. HRS conducts a review of the selection process and outcomes to determine together with the HR committee: Any process improvements to be made for the following cluster recruitment: Whether the pool of candidates short listed but not selected for cluster vacancies should be: Automatically considered for vacancies in the following cluster and/or: Should be considered for vacancies posted within clusters. These include: • • • • Increase the Bank's and its clients' capacity to foster development Strengthen relationships among the Bank's partners in development Enhance skills and knowledge of program participants Foster cultural diversity and awareness for the Bank and its development partners Career Development . International Travel: Young Professionals generally participate in two to three trips to developing countries during each assignment. STAFF EXCHANGE PROGRAMS The World Bank Group's Staff Exchange Program (SEP) is essentially a sharing of staff between the Bank and a partner institution. Japan through Nippon Keidanren was the first to partner with the Bank through SEP. managerial positions expected to become vacant over the subsequent 12-18 months. Coaching & Support: Peer Mentors: Young Professionals are assigned a peer mentor from the previous year's group. the bank offers the staff to work with some other project or join some other assignment. Assessing the Candidate Pool: To assist in determining the potential candidate pool and assessing the trade-offs of either filling the position via advertisements or strategic reassignment. Senior Mentors: Young Professionals have the opportunity to build a lasting professional relationship with an experienced senior staff member in the World Bank. managers be informed of the career plans. For staff who are ready for a new assignment. For developmental purposes. a reassignment might best fulfill business needs and further the career development plan of the appointee. it may be decided that the best course of action is to advertise them For other positions. it is recommended that during OPE (overall performance evaluation) discussion. Language Courses: When the employees are sent to different countries or locations. they are also given the opportunity to attend language courses. MD and VP to assess such factors as: • • Diversity Timing .27 Mentoring. In these cases. clearance and interview phase after which the selection decision is recorded in MyJobWorld. they do so in consultation with the respective VP. based on their professional interests and cultural background. If there are many candidates eligible to fill these anticipated vacancies. Young Professionals are also paired with a senior mentor in the department they are assigned for their rotational assignment. HRE processes the Reassignment transaction. After the receiving and releasing managers agree on the release date. the Managing Director and Vice Presidents review with the HRS. Executive Resources encourages the President. the President and Managing Director may reserve the right to make direct appointments. Generally. through the Senior Mentoring Program. These relationships are particularly useful for receiving career guidance. The candidates go through the usual short listing. the entire family of the staff member is applicable to attend the language course. Reassignments: Staff members also apply to a position at his/her current grade level via MyJobWorld (Job posting system on the intranet). Strategic Reassignment Process During the strategic planning discussions. Peer mentors can be valuable in helping new recruits better understand the expectations and challenges of the Program. the President. In some instances. the HRKiosk can provide staff with an annual Salary Review Increase history and a career Job Action summary. establishes such programs for monitoring and assuring the safety of the Bank Group workplace and staff as are consistent with established occupational health practice. Redundant staff is matched with the existing vacancies in the Job World for consideration along with other applicants. Staff can pursue their own imaged records through HRKiosk. the Bank Group assists redundant staff in seeking another position within the organization by providing access to the Job Search Center and the Job World. ergonomics and epidemiology.28 • • • Availability Candidates interested The kinds of profiles that would complement the current management team Reassignment and Retraining: Following the effective date of the notice of redundancy and termination. Placement also may be offered in a vacant lower level job position. This will include positions. the Bank Group: • Provides accommodations which are reasonable. Fitness for duty assessments as . support staff with disabilities. or for which the staff member can be retrained in a reasonable period of time. Workplace Safety: The director. which may include on-the-job training. processes and programs that create an accessible and supportive workplace worldwide. Work is underway to establish policies. the Bank Group ended the use of paper-based files and began to scan all documentation into an image-based HR records system. with recommendations for preventive or corrective actions as needed. These programs include but do not be limited to: Monitoring Bank Group facilities and working conditions for hazards to staff in the areas of safety. for an existing or known perspective vacancy where the manager agrees to accept the assignment of the staff member after a reasonable period of training. to enable applicants to participate fully in interview process and staff to perform their work effectively • • • Removes barriers to access in our Washington headquarters and Country Offices Improves accessibility to information technology Raises awareness amongst staff to dispel myths and remove invisible barriers the the the To the Transparency of HR records for the employees: Staff in general has access to the information in their files per the World Bank Group’s information policy. The cost of such training may not exceed three months of the staff member’s net salary and such training begins 30 days prior to the staff member’s termination date. CORE ISSUES AT WB Creating a Supportive Workplace for Staff with Disabilities: The World Bank is committed to attracting and retaining top-notch professionals worldwide. health Services Department. Starting in about 1996. the duties of which are commensurate with the staff member’s qualification. Additionally. When best candidates are persons with disabilities. the HR team is ready to go the extra mile to enable person to become a fully-productive member of the workforce. Redundant staff may also receive retraining. The country office Director/ manager. if possible. to determine appropriate steps to protect the health and safety of the staff. Health Services Department. Local staff Regular. Telecommuting: Work some or all workdays away from principal office (benefits impacted). staff and colleagues. Open Ended.29 warranted for those staff exposed to hazardous substances or working conditions. staff receive either full. For operational travel and training. consults with the Director. The keys to successful FWA’s are partnerships among managers. comp time for hours worked beyond the reduced work schedule. Hours of Work And Overtime: The regular work schedule is 40 hours per week unless an alternative work schedule has been established. or whose duties affect the safety of others. Flexible Work Arrangements: Flexible work arrangements (FWAs) are tools to assist managers and staff balance work and life issues. not all staff positions are suitable to this arrangement. workload permitting Flextime: Modify work start and times without reducing number of hours worked per day (8 hours plus lunch) Phased Retirement: Transition from full-time work to retirement by working reduced hours. Options for staff ineligible for overtime pay: Recuperative/Compensatory Leave : . having every 10th day off.time pay or. Term . in situations relating to public health emergencies or environmental issues. Only open-ended and term staff (including unconfirmed staff) are eligible to work this arrangement with manager’s approval. Short term temporary and Extended Term Temporary appointments are eligible for overtime. Overtime is hours in excess of the staff member’s regular workweek established and is compensated at time and a half for grades GD and below. Salary in some of the above cases is prorated according to agreed upon hours of work. he/she is not eligible for overtime payments as long as his net salary remains above the maximum of the salary range of the lower level position. Due to the diverse nature of the Bank Group work. Benefits in this case are also prorated Reduced Work Schedule: Work less than full-time (100%). In the current situation of heightened security concerns. if approved. Typically staff members holding Regular. The methodology for establishing local salaries takes into account the length of the workweek. Alternative Work Schedule (AWS): Work 80 hours in 9 days. When a staff member whose current position does not qualify for overtime payments is assigned to a lower level positions which qualifies for overtime payments. managers have the discretion to allow staff in other work categories to utilize flexible work arrangements on a temporary basis when appropriate. Benefits in this case are also prorated. Payment for authorized overtime of more than one half-hour is made at the rate of 1. for the purposes of rest and recuperation following return from exhaustive mission travel or a period of intensive and prolonged overtime. Administrative Leave : Leave may also be granted for services of essential staff or staff required to work on official holidays.5 times and hourly rate based on the staff member’s net salary.30 is allowed for staff ineligible for overtime pay. For this purpose. the staff has to fill in a Miscellaneous Expense Reimbursement Request (MERR). . The overtime work has to be authorized in advance by a manager either in writing or verbally. Reimbursement of taxi fares from the place of work to home for eligible staff who perform overtime is also authorized. We say Product Team because there are different projects and each is independent of the other. the HR function is in a transition to align itself better with the strategic direction of the entire organization. its employees want improved succession planning for ethnic minorities and more opportunities for women. They heavily invest on their employees in terms of training and development. and respect for other cultures and personal backgrounds. While the diverse nature of the bank is one of its strongest assets. More than 7. promoting and recognizing both managerial and staff excellence and mobilizing diversity. The role of HR at the World Bank is being re-thinked and reshaped. based on the information they choose the best strategy and then the role of HRM changes to that of implementing the strategy. The fact that World Bank’s HR is one of its competitive advantages says it all. sensitivity. The HR executive gives information to strategy planners. Since 2001. In short. While the World Bank may be the most diverse organization on the planet. Since 2001. It requires a lot of understanding. Strategy Type . These include strengthening strategic staffing.Differentiation Strategy World Banks HR practices are in line with its Corporate strategy. it takes a good diplomat. These include strengthening strategic staffing. While dealing with such a wide scope of cultural differences and backgrounds. promoting and recognizing both managerial and staff excellence and mobilizing diversity. the bank has used video conferences. providing more support to the global staff. it also presents the organization with its biggest HR management challenges. ANALYSIS Role of HRM in Strategy formulation: After analyzing the HR practices of World Bank we have found out that there is an integrative linkage between the HR function and the Strategic planning team. "town hall"-style meetings and one-on-one interviews to get staff feedback on key HR issues identified by employees. there can be quite a few misunderstandings and conflicts. "town hall"-style meetings and one-on-one interviews to get staff feedback on key HR issues identified by employees. The structure also goes with its differentiation strategy. providing more support to the global staff. This means there is a continuous and nonsequential interaction between the two entities. while nearly 3. . the bank has used video conferences.500 and come from all 184 member nations. They provide broader career paths to their employees.500 work at the bank's headquarters in Washington.31 CHALLENGES FACED BY HR IN WORLD BANK Since 2004.000 work in field offices spread across the globe. It is a combination of Geographic (as its spread over 180 countries) and Product Team Structure. They have a very diverse workforce including people from wide range of countries. Organizational Structure: As World Bank has its operations world over it is very difficult to keep it completely centralized. They recruit internally as well as externally depending on different posts. Core Values: The World Bank's staff members number 10. The bank is also working to ensure that the executive level reflects the makeup of the organization. Their compensation system is quite thorough and is externally compatible with other banks. Thus it has a decentralized Structure. the type of work and how it is performed are changing rapidly due to technology.e. we have also found out that prior to any proposal of ending employment via MAS (mutually Agreed Separation) or Redundancy. Every now and then there new practices and new technologies coming up that makes the existing employee’s ……obsolete. . the employment is terminated. the employee may be assigned to some position lower than the previous grade level at which he was working. Every now and then they launch new projects with a different purpose and with varying needs that are not similar to the existing ones thus a combination of both approaches serves them best. If there is no vacancy available. continuous monitoring of working conditions for hazards to staff in terms of ergonomics. they are transferred to some other unit. Therefore Demotions are also done at the Bank. This is in accordance with their ever changing needs of different projects. for which they are given compensation and benefits. safety etc. as the nature of work is mostly based on projects employees work in the headquarters on temporary three. Job Design: They are using Motivational approach in job design. In some cases we can also observe the use of Biological approach as in the case of special treatment for disabled people. Shortage of labor: In case of shortage of labor. Moreover. In such situations. Therefore they also follow a work sharing system. The terms and conditions are well defined before the additional assignment is given to the employee. In certain situations. They are given autonomy in their tasks.32 Job Analysis: They are using detailed questionnaires covering all aspects to carry out Job analysis in order to have thorough knowledge about job descriptions which in turn helps them in recruiting the right people for the right job. if there is no vacancy in the same grade level.or four-year assignments. Forecasting: As mentioned in the findings their Recruitment process starts with clarification of forecasting needs. Also the employees are given appropriate feedback which gives them a clear idea about their performance and areas of improvement. the staff is required to do overtime. the employee is paid extra for the additional assignment. Surplus of labor: In case when the employees are redundant. Turnover Rate: It is fairly high at the bank headquarters. the employees are also retrained to work in some other units. This again is inline with their differentiation strategy. They try to make the jobs of their employees more challenging in nature in order to motivate them. which requires higher employee motivation. every effort is made to seek an assignment within the unit or some other unit outside. while in some cases he is not. it is in the institution’s best interest to retain staff for which it has invested. They are given additional assignments and in some cases. the employees are retrained so that they can render their services in some other unit i. They are using a combination of statistical tools as well as subjective judgments of people in order to forecast labor demands. Firstly. motivating them even more. In the findings we have seen that 2 or more staff members may also share responsibility for one position. From the information gathered. Secondly. They have a detail process known as Mutual Agreement Separation (MAS). Secondly. The panel of interviewers typically consists of at least 2 members from the concerned department and 2 members from the HR team. Firstly. Recruitment sources: World Bank is using e-recruiting as its major source of recruitment. These people are usually selected form the local labor market. talented and creative staff. Thirdly. This increases the validity of the interviewing process. Although e-recruiting is one of the latest recruitment sources but it is restricted to internet users only. are also provided. With multiple interviewers. the chance of errors is reduced to a great extent. This is appreciated by most of the employees as it gives them a sense of job security. Especially in some developing countries like Pakistan just using e-recruiting may not hit the right target market. candidates are rated systematically which lowers the chances of biasness. external assignments. competencies are identified by careful analysis of position. their major drawbacks are: • • • • • • • Validity is low Inconsistency in topics covered Interviewer attitude effects the interpretation of responses Influence of unfavorable stronger than favorable Rush to judgment Interviewer talks too much Biases too frequently enter decision process .33 Recruitment Process: Both external and internal recruitment policies are used at World Bank. For internal employees there is an Intranet website named “myJobWorld” whereas for external labor market they recruit through their official website. the criteria or the dimension on which the candidates will be evaluated are also defined before interviewing the applicants. appropriate pools of questions are prepared which increase the specificity of the interviews. Usually an employee from one branch is promoted to a higher level in another branch. This makes it more reliable (greater inter-rater reliability) Selection Methods: The World Bank conducts competency –based interviews which carry certain advantages. This makes the process more reliable. The interview panel consist people both from the HR and the line managers. Moreover. Fourthly. transfers etc. the panel of interviewers increases the reliability of ratings. For higher levels mostly internal recruitment is followed. They do not follow employment at will policies. Although this concept does lead to a diverse work force and all the benefits associated with it but at the same time employees might not like a foreigner boss all the time As long as pay structures are concerned they are done keeping in mind the local labor market. If we look at the traditional interviews. Due process is followed before any staff member is terminated. Apart from this a lot of benefits and compensations as in the case of development assignments. For relatively lower levels external recruitment policy is implemented in order to continue to have new. However. maybe because he is a relative or a friend. The cognitive abilities of the candidate are also assessed during the interview session. Thus they have a comprehensive system for employee development. Individual Training Opportunities. The employees are required to provide 2 references (at least) and before hiring the candidate. the employee is hired. so that their chance of being hired may not be lowered. because the impact on a family can be quite overwhelming. the people who have been referred are called by the HR people. Their performance appraisals methods are high on specificity and they also use 360-Degree feedback system. As mentioned previously World Bank really does invest on its employees in terms of development. when their job ends or their term runs out. The challenge they face is that many will use the bank's grievance processes to fight to stay.S. relying on the fact that they can stay. International travel and Job rotation is being used as part of Job Experience. Employees can add their experiences to it as well as read others’. An advantage of these reference checks is that at times the candidates tend to hide their current employment when they apply somewhere else. They are using four of the development techniques. Reference checks are done on all the employees hired by the Bank. suddenly these people are in a state of shock because they must leave. Young Professional Discussions etc) as well as for existing employees such as External Training Program.based in which the candidate is asked to relate situations from his experiences and how he handled them. However. On analyzing the questions in the “list of interview question” we found out that mostly. because they have someone using their job to protect their family and it is a very hard decision to make. They also go for job enlargement in terms of reassignments to other jobs. Performance Management: • WB believes that 360 degree performance feedback and that employee’s objectives must relate to the units objectives and clear guidelines about how to improve strategic Congruence as well as increases specificity of Performance Management.34 The current practice of holding competency-based interviews is extremely beneficial and efficient as it allows the HR team to recruit people on the basis of their relevancy with the job. Their intranet site YourNet facilitates employees in sharing of information organization wide. Many employees go to the U. Introduction to Finance. Formal education in terms of language classes. They are asked questions regarding the candidate and after verification and thorough reference check. They also evaluate the effectiveness of the training imparted by filling up an OPE Supplemental Evaluation Form indicating the value and impact of the training for both the employee as well as the work unit. The candidates are also presented with case studies to come up with solutions and recommendations for the given situation. etc. Hence the reasoning abilities of the candidates are also evaluated. They have extensive training programs for both new employees (Young Professionals Orientation. Staff Exchange Program etc. Training & Development World Bank is a learning organization and they believe in knowledge sharing. Other than this mentors and coaches are also available to employees for support and development. it is possible that the people to whom the HR department refers are also not speaking the truth about the candidate. and will tend to hide any point that may cause the candidate to loose the job. the questions asked in the interview are Experience. He is evaluated on his speaking and listening skills. . This can present the HR team with quite a moral dilemma. a n employee at HQ may receive higher salary than one in Pakistan at the same position/grade. as well as gender diversity. While dealing with such a wide scope of cultural differences and backgrounds. it also presents the organization with its biggest HR management challenges. This makes world bank one of the most diverse organization in terms of cultural/ethnic. Performances are also evaluated on a yearly basis also. But the Pakistani employee will receive pay that is compatible with Pakistani labor market Diversity & Conflict Resolution System: The World Bank's staff members come from all 184 member nations. In short. i. which is totally based on their qualifications and past relevant experience along with the skills that they possess. professional. More than 7.35 We could not get any information about how the performance management system works at the World Bank.e. Pay structure: At the entry level. For this reason World Bank’s sophisticated Conflict Resolution System (CRS) ensures that the conflicts arising from the diverse culture are tactfully dealt with and the benefit of diverse culture is not over shadowed.000 work in field offices spread across the globe. the employees are given skill based pay. They ensure external pay equity within one country office. it takes a good diplomat. and respect for other cultures and personal backgrounds. Staff members from all the level are involved in getting a feedback for the concerned employee. This package is good because it encourages the employees to learn and the employees are motivated to attend the training sessions organized by the Bank Group. there can be quite a few misunderstandings and conflicts. Succession Planning: World Bank is working on succession planning. A feedback is also given to the employees who help them improve on their weaknesses. Moreover.500 work at the bank's headquarters in Washington. While the diverse nature of the bank is one of its strongest assets. while nearly 3. their pay is increased by a certain percentage. It requires a lot of understanding. They also follow 360 feedback system. The bank is also using a multi-rater tool which ensures that the performance measured is more reliable. The only information that we could get was that the bank has monthly review of their staff members. sensitivity. It is focusing on developing a large pool of young talented employees for future use but at the same time the fact that it is the most diverse organization on the planet. when the employees improve their skills through training and language courses. its employees want improved succession planning for ethnic minorities and more opportunities for women . Since it is a public changing work/technology specially to those sector organization so the efficient & the deademployees who don’t adopt change if there are wood both have strong existence in NBP. employees the hiring is linked to upfront requirements. WB has ended the use of paper-based file instead At NBP there is still a paper-based system in they scan all documentation into an image based practice. The weaknesses are addressed only when there is a complaint. there could be disciplinary ground & not surplus employee. past relevant an individual is holding. 4. Due to global operation they have decentralized They have centralized system of working which is . record system. 8. WB believes in 360 degree pay performance In NBP no such system exists to evaluate their feedback. Coaches and mentors are available in WB to The system of coaches/mentors in NBP is non employees for support and development existence. The given to employees about their weakness. 5. 6. i. Recruitment process starts with a clarification of There is no forecasting system to hire the future forecasting needs. If someone is to be demoted. In NBP the pay structure is linked to the position basing on their qualification. employees are not intimated about weaknesses. 9. surplus employees. trying to retain their talent pool. not there in NBP rather job description is disseminated by the HR department of NBP. The feedback both from the employers is employees performance on monthly basis. 7. Though they are large pool of young talented employees 2. They use detailed questionnaires covering all aspect This system for evaluating the job description is to carryout job analysis. 3.36 COMPARISON BETWEEN WB & NBP Se r 1. Focusing on succession planning by developing a This area is lacking in NBP. WB NBP Employees are given skill based pay in WB.e. Turn-over rate at WB is high because of rapidly Turn-over rate is very low. experience. demotions are also done & they also follow a work sharing system The demotions are not there. . seconded to other countries of NBP only WB used multi-rator tool which ensures that For performance evaluation NBP has its ACR performance measured is more reliable. 11. (Annual Confidential Report) which has its resemblance to graphic rating method.37 structure which goes with its differentiation headed by the Head office of NBP strategy. 10. The employees are trained to work in the boundary They work and are rotated within country and are less career. who to contact in case of problems faced on the job. There should be some proper and just system to solve such problems. one of the parties involved in the conflict is transferred to some other branch. the manager should make sure that parties to the conflict get back to their assigned work as smoothly as possible. There is a need to enforce corporate laws.        . Based on their discussion they can also plan the training programs employee needs to attend.38 RECOMMENDATIONS The management at NBP realizes the importance of HR practices. Most of the times. but there is not any formal method. The selection process at NBP for the MTO’s (Management Trainee Officers) is based on written tests and GD (Group Discussions). The conflict resolution system at NBP is very informal and ineffective. This is why the HR department of NBP is very active in strategy formulation and implementation phases. The managers do it by their own will. Their decision should be binding. The written test and GD is designed to test their overall intellectual capacity rather than their Banking knowledge. mechanistic) approach. the parties should be forwarded to the appeal committee which should consist of 5 to 6 unbiased individuals who should hear the case and give their judgment. Employees at the most get informal advices from their managers regarding the conflict. Once the conflict has been resolved. For the newly hired employees. But after analyzing the HR practices at NBP. it has been observed that some areas still need improvement. NBP should have a professional mediator who can resolve issues between 2 parties at a lower level. and where will they be heading in near future in terms of their transfers and trainings. A detailed discussion in an open environment should take place after the appraisal between the employee and his immediate boss in which the manager should indicate where exactly the employee needs improvement and how he can bring in that improvement. Feedback should also be provided to them on how they can improve their performance. These issues should be taken more seriously and the management should have formal conflict resolution channels. HR department must use the latest techniques in practice (physical. NBP management is not using any formal method to redesign the job. For example. This is not a proper way to end a conflict. The management should also provide training on ethical and behavioral issues. They will also have a feeling of being looked after. Although a course evaluation form is in place that asks for the evaluator’s feedback on every aspect of the course content but the management should give a serious thought and take necessary steps to honour the feedback (if it is logical). motivational. For the improvement following RECOMMENDATIONS are suggested:   Although NBP uses online application system for job placement for the management trainees and has conducted job fairs at various business schools but it should be a routine practice for talent hunt. Thus HR department should be involved in redesign process. biological. So that new entrants know what their job is. mentors should be assigned. as NBP is a semi government organization. Although the HR manager we met talked about the job redesign. If conflict persists. But the same procedure for hiring experiences staff should not evolve the same testing procedure but it should include questions to test their banking knowledge as well. NBP should adopt to the latest technologies used all over the world. and they would have knowledge about the latest trends. the HR of Standard Chartered and Citibank is very strong. . In order to compete in the labor market. These personal would be more competent.39 CONCLUSION NBP has a very broad network in Pakistan. they offer additional benefits to their employees. The top management is also willing to invest more in the HR department.g. Like World Bank NBP should also keep on updating its HR practices and almost all the latest HR trends are being followed in the World Bank. as it knows the importance of the HR practices in this era. NBP should consider their staff to be their assets and try their level best to keep their staff happy and satisfied so that they can be more productive. The steps taken for strengthening of HR base in NBP has been instrumental in achieving record performance. HR Goal Setting Conferences are also a regular feature through which the goals and objectives for the upcoming year is firmed up with a view to identify right kind of people. and in this way they are attracting more people. They need to follow new trends in the field of HR. Nevertheless to remain competitive NBP cannot be complacent and it should adequately prepare its human resources for meeting challenges of competition in future. Most of the HR managers working in NBP still need improvement to have an HR expertise. train them. National Bank should adapt the HR culture as that of World Bank. there are so many banks and financial institutions in Pakistan which have a very effective HR system and they follow latest trends to retain their best employees e. socialize them in the right direction. The top management of NBP has done very well in terms of the profits. motivate them to put extra effort and perform well and create conditions where the employees have a sense of fulfillment to retain NBP’s position as “Employer of Choice”. By doing this. As we know that. tools and techniques of HR. NBP should hire personal in the HR department who are specialized in HR field. and it would reduce costs and increase productivity in the longer run. This has been empirically proved through KPIs received from the field. HR department would become more effective. Having an international exposure NBP is the only organization which is dealing in such a diverse workforce and to manage such a diverse workforce is definitely the biggest HR challenge faced by NBP. assign tasks and roles that bring out their best. espireinfo.nbp.eridlc.org Web Sites Consulted: http://www.shrm. Karachi) NBP’s official website: http://www.com/-vp2183.cfm?fuseaction=textbook.com/index.org/hrmagazine/ http://www.40 References: Ms Maria Abbas.com/hr.com. (National Bank of Pakistan.htm http://www.citehr.html http://www.chpt04 .pk World Bank’ official website: http://worldbank.