Functions of Human Resource

Department in State Bank

 Presented by:

Nauman Shah ME-07-17

Usman Nasir ME-07-41
 Introduction to State Bank
 Central Bank
 Nationalization in 1974
 SBP-BSC
 Simple Central Banking Functions
 NIBAF
 Human Resource Research and De-
velopment
 Chairperson of BCS, NIBAF
Departments of State Bank
Concerning our Report
 Strategic and Corporate Planning De-
partment
 Human Resource Department
 Information System and Technology
Department
 Research
 Training and Development Depart-
ment
 Management Structure
 Believe on Segments of Divisions
 Highly Centralized at Top Level
 Semi-Centralized at Middle Level
 Planning and Strategic Decisions are
Highly Centralized
 But with the inclusion of other de-
partments
 In the middle level
 Hiring and Firing Decisions are done
at the higher level
 Efficiency or Responsive-
ness?

 What are the Current Trends?

 Dimension of Efficiency
 Dimension of Responsiveness
 Trade offs
 Which one is more important?
 Hiring the new Blood
 Here Comes the Role of Human Re-
source Management
Human Resource Depart-
ment in State Bank of
Pakistan
 Main Goals of Human Re-
source Department

 Improved R&D
 More Strategic HR Role
 Maximum Attention to Workforce De-
velopment
 More IT Inclusion
 Flexible Payment System
Human Resource Functions
Performed in State Bank
 Planning and Development
 Recruitment
 HRIS
 Performance and Management
 Compensation and benefits
 Employee Relations
 Talent Management (Re-
cruitment) and Training Di-
vision
 HR Planning, Job Analysis & Design
Unit
 Recruitment Planning Unit
 Organizational Development Unit
 Recruitment Operations Unit
 Assessment Centers Unit
 Employee Orientation Unit
 Internal Job Posting Unit
 Performance Management Unit
 Reward and Recognition Unit
 Employee Motivation and Retention
Unit
 HR Planning, Job Analysis
and Design Unit
 Annual Men Power Plan
 Identify the New Goals
 Check the Inventory
 Job Analysis
 Job Descriptions
 Old Jobs Evaluation Process
 New Jobs Evaluation Process
 Identifies the Training Needs for the
Old Workforce
Recruitment Planning and
Organizational Development
Unit
 Attracting Criteria
 Sticking to the Organization policies
for selection Criteria
 New Criteria for New Type of Jobs
 Recruitment Planning
 Right People for Right Jobs
 Uses latest organizational theories to
bring innovation
 Change Management
 Default Selection Criteria
 Masters or Professional Degree in
Specialized Field
 65% + or 3.0 +
 High Communication Skills
 Medically Fit
 Highly Motivated and Skilled
 Experience in Relevant Field Preferred
 Equal Employment Opportunities (Dis-
cussed Later in Detail)
The Recruitment Operations
Unit
 Identification of Proper Media
 Identification of Proper Target Audi-
ence (Men power)
 Attractive Advertisement Design
 Placement of Advertisement at Proper
Time
 Attract Potential Personnels
The Assessment Centers Unit
 Observation of Attracted Employee's
Performance
 Through Tests
 Outsourcing usually from NTS
 Group Discussions
 Final Interviews
 Outsourcing usually from Institute of
Bankers
 Employee Orientation Unit
 Role of NIBF
 Conducted by NIBF
 Selected Employee Trained through
NIBF
 For successful, productive working
 Brief Visit to the Organization
 Detailed Job Presentation
 Organization Culture
 Chain of Command (Who reports to
whom)
 Working Relationships
Training Structure
 Internal Job Posting Unit
 Encourages Current Employees
 Promotion
 Transfers
 Fulfill Employee Personal Objectives
 Throughly Performance Based (Dis-
cussed Later)
Informal Employee Training
During Work
 Supervisor of the Department Helps
Newbies
 The Most high performer ranked as
the trainer
 Dual responsibility
 Fulfill Job Responsibilities
 Manage the Training of Newbies
 Given more benefits
 Employee Motivation and
Retention Unit
 Conducts Motivation Surveys
 Research the workforce market
 Through Surveys Identifies the Cur-
rent Motivational Factors
 Identify the Factors for Employee Sat-
isfaction
 To Retain the High Performers
Reward and Recognition Unit
 To foster the Culture of Acknowledg-
ment and Appreciation
 For Introducing Innovation in work
practices
 Takes suggestions from employee to
imporve the performance
 Recognition due to Extra Ordinary Ef-
forts
 Simple Thankyou Letters
 Celebration and Monetary Rewards
 Talent Management and
Training Division Process for
Laymen
 Planning for Workforce
 Advertisement in media for Recruit-
ment
 Only on Qualification Basis
 65%+ Educational Record
 High Communication Skills
 Interview and Discussion Groups
 Medical Test
 Selection
 Top 60 Go to NIBF for
training/Orientations
 Promotion on the Basis
Reward, Performance Man-
agement and HRIS Division

 Getting Feedback is really important

 A need for Measurement for Perform-
ance
 Special System for Measurement of
Performance
 State Bank uses Bell Curve System
What is Bell Curve System?
 Not only a Performance Measurement
system but Complete Organizational
System
 Forced Ranking System
 Identify Best and Poor
 Rates Entire Workforce
 Basis of Similar Activity
 Basis of their Performance
 Workforce is Segregated in Three
Parts
 Organization Makes the Standard Per-
centile for the Workforce
 State Bank's Percentile
Standard
For Bell Curve System
 On Similar Work Basis
 May Called Department Basis
 10% Top
 80% Middle
 10% Bottom
 This Clearly Identifies the Demand of
New workforce
 Tells to the Employee Clearly where
he stands
 Basically Pay-for-Performance System
Working of Bell Shape Sys-
tem
in State Bank

 Low Performance Grading

 Pressure to Perform
 If Perform Better
 Promotion Plus Good Rating
Pressure and Performance
 But Manager Should
Consider in Mind that:
 No Pressure Slack Performance
 Huge Pressure Performance Reduces
 What's been done to
10% Top Group?
 Contributes a lot in Organization Per-
formance
 Huge Rewards for them
 Motivate them to Groom them more
 More Training Opportunities for them
 Sometimes Sent abroad for highly
Skilled training
 Very Clear Glass Ceiling
 Very Well Structured Career Path for
them
 Huge Chances for Promotion
 Included in Dept wide Decision Making
 The Middle 80%?

 Significant in Number
 Shows un-interrupted work flow
 Have some weaknesses
 Provided More Training
 Enrich the Skills
 Considered for the Next Performance
Measurement Time
 What about Poor Old 10%?

 Requires Huge Change

 Unsatisfactory
 Poor Performer
 Sometimes given some time to Im-
prove
 Usually Fired
 Replaced By Fresh Talent
 Easy to identify the Demand :-)
 Compensation and benefit
Planning Unit

 Based on Bell Curve and HRIS and

PMS (Performance Measurement Sys-
tem)
 High 10% get Maximum benefits
 Medium 80% just mare benefits
 Lower 10% no benefits
Compensation and benefits
Provided
 Free Medical Services for Employee
 Free Medical Services for Employee
Family
 Improved Salary (10% Top)
 Maximum Increments (10% Top)
 Bonuses (10% Top)
 Promotions (10% Top)
 Fringe benefits (10% Top)
 Free Transportation and Patrol (10%
Top)
 Easy Loan Facilities
Compensation and benefits
Provided (cont...)
 Job Security
 Training in NIBAF
 Training Abroad (10% Top)
 Ongoing Programs for Re-
wards and Employee Motiv-
ation
 Totally Performance Based
 Has Four Levels
 To improve the Motivation Level
 To Reward the 80% Middle Level
 To make it the Reward based and Per-
formance Based Culture
 Specially for Motivating 80% Middle
Level
Level 1 Recognition Rewards

 Individual Contribution Reward

 Informal way of Recognition
 At Individual Level
 Includes Simple Thankyou
 Thankyou Notes, Emails, Letters
Level 2 Recognition Rewards

 Departmental Commitment Reward

 Cash Award of 5000/- Rs.
 Recognition Certificate
 Department wide Recognition
Level 3 Recognition Rewards

 Organization Competence Reward

 Cash Reward of 15000/- Rs.
 Recognition Certificate
 Shield
 Bank Wide Recognition
Level 4 Recognition Rewards
 Excellence Reward
 Cash Reward of 30,000/- Rs.
 Recognition Certificate
 Shield
 Bank Wide Recognition
 Considered in outside organizations
too
Basis of Bell Curve in State
Bank
 Information Systems
 HRIS
 Oracle Based
 Data Warehouse
 Fully Computerized record keeping
 Daily Performance Data
 Like Entry Exit Improvement Absents
 Drawbacks of Bell System
 Depends upon Supervisor
 Biasness
 Wrong performance picture
 Misleading information
 Grouping
 Overall Reduced Performance
 Deviation from Goals
 Inclusion of Information System Re-
solved all above issues
 HRIS in State Bank
 Oracle Based
 Information System
 Data Warehouse for Decision Making
 Updated on Daily Basis
 At Individual Basis
 Huge infrastructure is Implemented
for HRIS
 Employees Wide Decisions are made
on HRIS Records basis
Structure of HRIS in State
Bank
Internal Information Struc-
ture
of HRIS in State Bank
Flow of Information in HRIS
 Employee Database
and Service Record Unit
 Maintaining and Updating Employee
Data
 Messages are sent to Employees
 For Prompt Communication
 Attendance
 Performance
 Working
 Transactions
 Job Type
 Salary
 Compensation

 HR Automation and
Performance Unit

 Works on HRIS
 Generate Reports
 Employee Performances
 Reports Serves as Input to Bell Curve
Regulations and Compliance
Division
 Responsible for Making and Maintain-
ing the Rules and Regulations for the
Organization and HR
 Disciplinary Unit
 Equal Employment Opportunity
 Transfer and Posting Unit
 Employee Separation Unit
 Internal Monitoring Unit
 Business Planning and Budgeting Unit
 Admin and Co-ordination Unit
 Disciplinary and Litigation
Unit

 Employee Discipline
 Initiate Disciplinary Actions
 Enforce Organizational Standards
 Discourage Infractions
 Resolution of Conflicts
 Inter-employee Relationships
 Absenteeism

 Employee Leave Quota is Maintained

 Take a leave after 6 days of work
 Per year 28 leaves are assigned
 Disciplinary Approach is used by the
Supervisors to handle Absenteeism
 Rewards Given for the Leaves not
used
 Conflict Resolution
 First Step: Bi-Literal
 Simple Table Talk
 If not Resolved then go to Second
Step
 Second Step: Conciliation
 3rd Party is taken into account
 15 Days to resolve the issue
rd
 Both Parties negotiates under 3 Party
 Both Parties themselves select the 3rd
Party for Moderation
 If not resolved then go to 3rd Step
Conflict Resolution (Cont...)
 Step 3: Arbitration
rd
 Again 3 Party is selected by Both
Parties
 That 3rd Party is of Magistrate Level
 3rd Party is Called Arbitrator
 Arbitrator has to resolve the issue
within 30 days
 If not able to resolve then Case taken
to the court
Misuse of Secret Information
 Highly Condemned
 Misuse of Information
 Modification of Information for negat-
ive use
 Against the Policy of Organization
 Handled by Regulation Unit
 Subject sent behind bars
Equal Employment Opportun-
ity

 Job Opportunities in Quota System

 Quota for Each and Every Province of
Pakistan
 Sub Quota for Male and Females
 Sub Quota regarding Age
 Quotas Regarding Technological
background
 Reverse Discrimination
 Quota System Leads to Reverse Dis-
crimination
 Consider Male Applicants Quota is Full
but still some highly skilled not em-
ployed
 But Females quota is not full
 So, Less competitive females are
hired rather then highly competitive
males
 Managing Diversity and
Quotas
 Females has less quota then males
 This year Female Quota is Doubled
 Highly Diversified In terms of Skilled
Workforce
 Not only Gender, Age for Diversifica-
tion but Hiring Diversified Workforce
Regarding Skills like:
 Economics
 Management and Marketing
 Computers and IT
 Administration, Finance, and Soci-
ology
 Transfer and Posting Unit
 Before Transferring Organization
Goals and need for Workforce should
be in mind
 Short Term Transfers
 Usually for the Transfer of Skilled Per-
son
 Usually for a Limited Specific time
 Short Term in Nature Less then 1 year
 Permanent Transfers
 Usually to Retain Employees Migrating
to another city
 Employee Separation Unit
 Retention Decision
 Employee Separation Unit
 Exit Interviews
 Internal Monitoring Unit
 Carry out Audit Cases
 For Different HR Divisions
 Liaison with External and Internal Aud-
itors
 HR Performance Reports
 HR Progress Measurement
Compensation and Benifits
 Improvement in Service Conditions
 Salary Structure
 Fringe Benifits
 Salary Structure
 OG-1 16,481 36,600
 OG-2 19,890 45,400
 OG-3 23,704 55,800
 OG-4 29,059 63,600
 OG-5 32,119 69,200
 OG-6 34,650 73,600
 OG-7 46,721 91,100
 Fringe benefits
 Staff Loan Policy
 Purchase/construction of a
house/apartment for residential pur-
pose.
 Purchase of Motor Car/Motor Cycle.
 Purchase of Computer and Printer.
Facility on Outstation Duty
 Category of Officer Rate of
Gross
Daily Allowance
 OG-1 to OG–4 Rs.2, 400
 OG-5 & OG-6 Rs.3, 030
 OG-7 Rs.3, 500
 Facility of Bank Car and
Patrol
 Directors & Chief Managers
Car 800 CC Petrol 200 liters per
month.

 Executive Directors
Car 1300 CC Petrol 340 liters per
month.
Free Petrol For High Performers and
Transportation
Medical Facilities
 Medical Facilities
 Medical allowance
 Family Medical allowance
 Diseases allowance
 Free Health checkup
 Relaxation in case of Uncertainty like
accident, death etc.
 Telephone Facility
Salary Scale Telephone Calls per
month.
OG-2 & OG-3 200
OG-4 & OG-5 400
OG-6 600
OG-7 900
 Career Development
 SCHOLARSHIP SCHEME AND STUDY
LEAVE
 SCHOLARSHIP SCHEME FOR OFFICERS
FROM THE RESEARCH DEPARTMENT
FOR DOCTORAL PROGRAMME
 SCHEME FOR STUDY LEAVE WITH IN
PAKISTAN.
Career Development (Cont...)
 SCHEME FOR GRANT OF SABBATICAL
TO OFFICERSGRADE-5 AND ABOVE

 SCHEME FOR
DEPUTATION/SECONDMENT/TOUR OF
DUTY AND RE-EMPLOYEMENT OF
STATE BANK EMPLOYEES.
 Retirement Benifits
 Loans
 Family Insurance
 Gratuity
 Pension
 Retirement Fund
 Life Insurance
 Child Study loans
Thankyou