INSTITUTE OF BUSINESS MANAGEMENTHuman Resource Management Effect of Training & Development on the Efficiency of UBL ii Acknowledgement The compilation of this report could not have been realized without the blessings of Almighty Allah. We are highly indebted to quite a few people who have been there from the beginning till the completion of our final project. Their undue support has been the source of inspiration for us to complete it efficiently within time. We would deeply like to thank our teacher and Head of Human Resource Department for his guidance during the project. His excessive support has been the source of motivation to perform our best, regarding the report. We would also like to thank Syeda Nida Bukhari, Training Manager-south, Training and Organization Development-HR (UBL) and Miss. Sana Fatima Kizilbash, Assistant Manager-HR (UBL) who provided us opportunity to visit the organization to understand its training and development process and its effect on efficiency. iii Contents Acknowledgement...................................................................................................... ii Contents.................................................................................................................... iii Introduction to Organization.......................................................................................4 Training Facilities at UBL............................................................................................5 Trainers......................................................................................................................5 Trainees...................................................................................................................... 6 Training & Development Organization........................................................................7 Keys issues in training:............................................................................................7 Kinds of Training.........................................................................................................8 Modes of training........................................................................................................9 Conclusion................................................................................................................ 11 References................................................................................................................12 4 Introduction to Organization “To be a world class bank dedicated to excellence, and to surpass the highest expectations of our customers and all other stakeholders” UBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas.UBL was established in 1959 and is one of the major commercial banks of Pakistan. The Bank is making every effort to meet the up-coming challenges through strategic planning and making the best use of the resources at its command. A professional team was appointed in mid 1997 to restructure the bank and to commence rationalizing. The management is also in the process of rationalizing the branch network and identifying and recovering its doubtful and classified portfolio. It has planned to institute major improvements in customer services and internal systems to improve efficiency. It also intends to launch innovative products. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets. UBL operates 1375 domestic and a subsidiary viz. United Executors and Trustees Company Ltd. as on 30.06.2000. It has 20 overseas branches situated in the UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt and Tehran-Iran. It also has a joint venture – Oman United Exchange Co., Oman Muscat and a subsidiary – United Bank A.G. Zurich, Switzerland set up in 1968. It has 21 ATMs with 8 in the UAE, 3 in Bahrain, 1 in Doha, 7 in Islamabad and 2 in Karachi. College of Business Management, I.oB.M, Karachi 5 Training Facilities at UBL UBL has three training centers across Pakistan located at Karachi, Lahore and Islamabad. These training centers are equipped with modern computer labs for computer labs, training hall with all the necessary technological requirements, beautiful lawn along with a dining facility. Training for the new employees and refresher courses for the existing employees who are currently working in branches and different offices of UBL are conducted on periodic basis, whereas, for locations far away from the training centers, trainers are trained in the same facility so that they can be sent to far away branches and offices of UBL to further train the employees there. Audio visual aids and different sort of skill development games are also used for the training and development of the workers or employees. Trainers A) In-house faculty UBL has certain pools of trainers divided as corporate trainers, sales trainers, consumer banking trainers etc. There are expertise trainer’s artilleries focusing different areas of the industry, the organization aggressively depends on its in-house faculty not only to satisfy its functional needs but also to train the managerial staff. B) From market UBL invites trainers to organization to train its employees to develop special managerial skills. Professional trainers and motivational speakers in the market are invited as guest speakers to address the officials of the organization to induce leadership skills. C) Portfolio manager of UBL College of Business Management, I.oB.M, Karachi 6 Successful professional of the bank itself also come and speak to the middle and lower level employees and share their experience with their colleagues, in this way the lower level employees see their bosses as a source of inspiration and feel privileged to work with them. Trainees UBL has been training the highest number of trainees in the industry, since the start of 2009 UBL has trained above 10,000 trainees till now. They have different ranking criteria for the employees. These ranking help them to promote the employees to different departments and it is their appraised ranking over which their training needs, requirements and programs are decided. Ranking also gives the feedback of the performances of the trainee. Training programs are also organized according to the training needs of the work position they are promoted to. Before the restructuring there existed lack of communication between senior and junior management like juniors used to feel hesitation to mingle with their seniors and seniors also hesitate to communicate with their upper heads. This problem was catered by conducting training sessions in which all the senior and junior staff relating to any particular department/specialize task are gathered under one roof, they are trained there under all the scenarios that can take place in the organization. All the contractual and permanent members are treated equally in these training sessions without any discrimination. Also while training the workers in a training program it is made sure that each worker knows the duties and understands the responsibilities of his/her fellow worker, so that he/she can be the replacement in case of need. It also builds awareness in the employees i.e. an employee in the sales department is aware about the other department so that if any absenteeism takes place, he can be able to coup the situation. College of Business Management, I.oB.M, Karachi 7 Training & Development Organization Training need assessment (TNA) is done by the business support and communicated to the training department so that training department can schedule the training calendar for the organization for the year ahead. There are about 14 to 15 in-house programs and about 45 public programs in which employees are trained and trainer are sent to other cities to train other employees every month. Keys issues in training: 1) Why the training is required at this time? What is the objective of the training? What results are required at the end of the training? 2) Timing: as the time period covers, it gives you an idea about the training sessions that when it has to conduct. 3) How many people that are going to get training? So that necessary arrangement can be made correspondingly. College of Business Management, I.oB.M, Karachi 8 4) How much money will be required to train those people? Since in UBL the allocation of money for training is being done by the head office rather than training department. 5) Evaluation of training: • Feedback form trainers/trainees: Its is essentially important to know weather the trainees are getting for what they are trained for or not, at the same time on the basis of trainees’ feedback trainers are jugged and appraised accordingly. • Training content: The trainees opinion about the understandability of the training material, whether printed or audio/video reveals validity and consistence of the training program. Trainer presentation and communication skills can also create difference. • Training environment : Whenever we talk about the training environment it refers to the atmosphere of the place where training is being conducted, seating arrangement, visibility of the presenter and audibility of speaker, food and even temperature and lightening of the room. Kinds of Training 1) Functional development It is directly related to job description (especially for bank employees) for the task the employee is hired or promoted. Functional training is usually necessary for the branch level employees and for those workers involved in daily routine operations of the banks. Those personnel (e.g. tellers) who run the touch-points of the organization also receive the functional training. In which employees are taught how to motivate subordinates, how to dress well, cash counting techniques, how to attend calls, how to greet customers, etc. 2) Management development College of Business Management, I.oB.M, Karachi 9 The training which relates to the behavior modification and personnel growth of the employees i.e. time management, stress management, leadership skills etc. It includes activities so that managers may not feel overburdened and at the same time the prestige and reputation of the bank can be upheld. The activities include playing golf, skiing, rock climbing, tug of war etc. Modes of training 1) Class room Training organized in a school/college like class room with comfortable environment, equipped with OHP (overhead projector) or multimedia system, with the help of which trainer presents the training material to the audiences. 2) System based training College of Business Management, I.oB.M, Karachi 10 The training organized in a computer lab with hands on practice on the bank’s software and various procedures needed to perform different tasks quickly and efficiently. It can be further classified in to two aspects: • Virtual branch: virtual bank branch is created with in the computer lab; each trainee is required to work with computer to learn to perform the routine tasks as mentioned in the job description. • Role playing: role playing is the most interesting mode of training, during this type of training trainees are assigned various roles with whom they are expected to come across frequently in their job performance in different situations. 3) On job The training an employee receives while working, directly from his/her immediate supervisor or line manager. In this type of training co-workers play a very important role and also the interpersonal and communication skills of both the trainee and the trainer has to be extremely good. 4) Workshop Workshops are organized by the bank to increase the awareness about the amount of technicality involved in the work. Also it provides the opportunity to the participants to share their views and to increase their inter-personal and reasoning skills. 5) Seminars Seminars and symposiums are the key activities to keep the managers and decision makers of the organization motivated, and also updated to the constantly changing business environment of the globe. Individuals from other institutions (some times from abroad) and even from different departments and divisions of the same organizations are invited, they present their opinions and share their expertise knowledge with the audience so that it can be effectively utilize to achieve organizational goals. College of Business Management, I.oB.M, Karachi 11 Conclusion The purpose of the project was to skeptically analyze the training and development procedures of UBL and find its effect on the efficiency. It is not possible to directly conclude about the nexus of training and development procedures with efficiency, however the effect of good and meaningful training can be obviously seen through the behavior of the employees with the customers and the value delivered to the customers at the touch-points (branches) of the organization. The restructured training program of the bank also focuses on the personnel development of the workers other than fulfilling the functional needs. Its impact can be noticed by the fact that today hardly any worker of the bank in any branch can be seen in non professional dress during the working hours, today each phone call received at the bank is treated as a professional call and it is attended by a pleasant opening greeting unlike four to five years back when nobody in the bank cares to attend the phone calls. Similarly, previously some of the workers of the bank were in a habit of chewing ‘pan’ at the workplace but now it has become difficult to find such pathetic environment at the workplace. To this day most of the branches of UBL have been completely renovated and those left are in the process, giving an entirely new, dynamic, professional and above all customer service oriented look to the organization. Also the turn over of the newly hired employees at UBL shows a declining trend since last six years, turnover in the year 2004 was 61%, 2005 was 50%, 2006 was 43%, 2007 was 40 %, 2008 was 49% and in 2009 was 26%, this shows the employees willingness to stay with and work for the organization has increased with time. All these significant changes are induced by the intentionally designed training and development programs keeping in view the specific training needs of the industry, complying towards its mission and vision. College of Business Management, I.oB.M, Karachi 12 References 1. Syeda Nida Bukhari Training Manager-South Training & Organization Development-HR UBL Training Center-South Phone: 021-4380624, 4381973 Ext-212 2. Sana Fatima Kizilbash Assistant Manager HR Management Head office, UBL UAN: 111-825-111 Ext-2849 College of Business Management, I.oB.M, Karachi