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Chapter #1
1.
INTRODUCTION:

INTRODUCTION

Chapter one is about introduction of report. As a part of requirement of BBA degree six week internship is necessary for student. This chapter includes background, purpose, scope, objectives and methodology of the study. It also includes introduction of organization.

2.
BACKGROUND OF STUDY:
Internship training program during business in business administration is necessary for the partial fulfillment of the completion of Degree of Business in Business Administration. It is necessary for me to complete an internship session of about 6 weeks in some manufacturing or service sector relevant to my area of interest and specialization. So; I choose the Banking field because I have the interest in this sector because my study background is related with this sector.

3.
PURPOSE: Internship is the capstone experience that provides me
with hands on real world experience in a work setting. Ideally, internship will enable interns to: (a) Integrate and use my knowledge and skills from the classroom (b) Discover where further competence is needed, (c) Take steps to gain that competence under educational supervision, and (d) Become better acquainted with the types of work setting in which such competence can be applied.

4.
SCOPE:
THIs study will facilitate the students regarding the working of banking sector of PAKISTAN because most of the teachers during the lectures use the Examples of banks like MCB, NATIONAL BANK, UBL and many others,

students should study the report so that they must grasp the functioning of such banks.

5.
LIMITATION OF THE STUDY:
The study is done with the sole purpose of doing the best work but there were certain limitations faced during the internship period. The most important limitation from which the study suffers is the non availability of information in a matter required for analysis and the secrecy of the bank. Another important limitation of the study is time and space constraint.

6.
OBJECTIVES:
I worked as an internee in MCB HYD BRANCH. The main objectives to study in MCB were:
y To gain some experience in working with well reputed organization.

y To gain knowledge about the professional environment of the bank. y To know about the technology utilized in the banks y To deal and manage with situation of stress.

7.
METHODOLOGY:
There are mainly two methods that are used for the collection of data. 7.1. PRIMARY DATA
y Observation of function of Branch operation on the spot. y Observation of different processes of branches on the spot

7.2. SECONDARY DATA


y Internet is very helpful for me to study more about banking sector of Pakistan.

y y y y

Different types of booklets in Pakistan Annual reports Journals Newspaper

8. SUMMARY:
This is the first chapter of the report containing Detail introduction of the report. Internship training program during of Business in Business Administration. Internship will enable interns to integrate and use my knowledge and skill from the classroom. This study will facilitate the students regarding the working of banking sector of Pakistan. For achieving my purposes, objectives and for the preparation of the internship report. I required some kind of data; I used both methods of data collection.

chapter#2
INTRODUCTION TO THE ORGANIZATION
The bank was registered in 1924 to accomplish the three-tier system of cooperative credit in the province of Punjab. Primary cooperative societies constituted the base; the central cooperative banks were at the secondary level and at the top was the Punjab Provincial cooperative bank limited serving as an apex bank for providing credit to the cooperatives. In October 1976, the Federal Government Promulgated the Establishment of Federal Bank for Cooperative and regulation of cooperative banking ordinance, whereby the cooperative banking system in the Punjab was converted from three tiers into two tiers resulting in the dissolution of 46 central/ urban and industrial cooperative banks and banking unions. According to the provisions of the ordinance, the undertakings of the Dissolved Cooperative Banks stood transferred to and vested by in the Punjab provincial cooperative Bank Limited on the terms and conditions notified by the provincial Government in order to manage and control the undertakings of the dissolved cooperative Banks.

BUSINESS VOLUME
The Punjab provincial cooperative bank limited is a scheduled Bank, at present, having 161 branches at district, Tehsil headquarters and important mandi towns. Over 38000 cooperative societies are affiliated with the Bank. The paid up share Capital of the bank amounts to Rs. 112.518 million, out of which the Provincial Government subscribes shares worth Rs.16.235 million. The authorized share capital of the Bank consists of unlimited number of shares of Rs. 100 each. A member cooperative society, which has to borrow loan from the Bank for its members, has to purchase at least shares equal to 2% of the MCL of the society fixed with the Bank.

OBJECTIVES OF THE BANK


The main objects of the Bank are as under: 1. To afford financial assistance to members societies in such manner as may be necessary. 2. To carry on banking and credit business. 3. To inspect, supervise and estimate credit of member societies. 4. To help the growth of the cooperative movement.

FUNCTIONAL DEPARTMENTS OF THE BANK:


There are six functional departments of the bank. These are : 1)Credit and Recovery 2)Audit and Inspection 3)Board and Properties Affairs 4)Finance 5)Human Resources 6)Law and Advisory All these departments work under the supervision of the deputy general manager .Along with the deputy general manager and the heads of all these functional departments ,there is general manager of the bank .All these department work under the policies framed by the board of directors from time to time and the policies are conducted by the H.R.Department.

OBJECTIVES OF STUDYING THE ORGNIZATION :


1-To review the human resources department . 2-Analysis of the functionalities of human resources department . 3-To do a comparative analysis of the organization with the other in the same business and capacity . 4-Finding out the weaknesses, short comings, strengths and beauties of the human

resource department . 5-To put some suggestions & recommendations for the development and polishing of the human resource department .

NATURE OF THE BUSINESS :


The Punjab Provincial Cooperative Bank Ltd. is one of the famous and well known organization in the banking sector. Its services have won good will and the bank is considered credible throughout its area of operation and range of business. It gives loans to the cooperative societies and to the individuals too. More over it also offers services in the normal banking of daily life.

PRODUCT LINES OF THE BANK:


The oldest scheduled bank of Pakistan gives the following services to the customer. 1) A leading bank for providing the agriculture loans to the low scaled formers by its Punjab wide 161 branches. 2) The availabilities of productive loans to the formers of co-operative societies for seeds, pesticides and fertilizers on easy conditions. 3) Mid term loan for the purchase of tractors in a co-operative societies. 4) Agriculture machine and tube well loans. 5) The loan up to 5 Lac for co-operative societies for the increment in the industrial production. 6) Females may also benefit themselves by same facilities. 7) Availabilities of the loan for the development of Information Technology. 8) The launching of gold loan for general public and agriculture purposes at Tehsil level.

COMPETITORS:
1) I.D.B.P. 2) A.D.B.P. 3) Muslim Commercial Bank Ltd. 4) Habib Bank Ltd. 5) Foreign banks like City Bank , Standard Charted Bank Ltd. etc

LIST OF PRODUCTS:
1) Shares capital. 2) Reserve deposits.

3) Securities. 4) External loans . 5) Investment. 6) Loans . 7) Reception of utility bills. 8) Reception of the application for the Pilgrimage (Hajj). Human Resource Department is not directly concerns with the customer satisfaction but its policies are the integral part of the bank achievement plans and its policies ensure the right person to be hired, for the right and specified job, trained, evaluated, giving incentives and hence by appointing right persons in the different functional departments of the bank. So Human Resource Department helps in the proper functioning of the products and if there are complaints against the products of the bank or the customers are not satisfied with the bank products, it takes measures in order to determine the job specifications, hiring of the appropriate person or conducting the refreshing courses etc. and hence leading toward goals achievement.

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CHAPTER#3
HUMAN RESOURCE DEPARTMENT
HUMAN RESORCE DEPARTMENT OF THE BANK
The Human Resource department of the bank operates in an auxiliary, advisory, or facilitative relationship to other departments in the organization. Any staff unit, whether it be personnel or otherwise, exists to help the line effectively. It has been created in the first place to take advantage of specialized talent and knowledge. The H.R department of the bank generally performs the following roles: 1. Initiation and formulation 2. Advice 3. Service 4. Control

POLICY INITIATION AND FORMULATION


The executive in charge of the H.R.Department is the individual most actively involved in policy revision to cover recurring problem or to prevent anticipated problems. Ordinarily these are proposed to the president of the company, and it is up on the latters authority that the policy is actually issued. When proposing a new or revised policy the personnel director must analyze problem that have occurred in the past, survey other companies to determine how they handle similar situations, discuss the matter with colleagues and subordinates and give due consideration to the prevailing philosophy in the organization.

ADVICE
A major portion of the activities of those engaged in staff personnel work is in the nature of counsel and advice to line manager. Countless examples can be given. A shop foreman may be confronted with a grievance over distribution of overtime. Another foreman may have the problem employee who he feels should be disciplined or even suspended. At the time of the annual review of all salaried personnel for possible pay increases, the operating manager plays a key role in advising operating manager on the administration of the program. An apparent

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concerted slow down may occur in the assembly department. It may have been instituted by the union in retaliation for the cutting of piece rates the week before. How should production supervision handle this situation. The H.R.Managers and their staffs are expected to be fully familiar with H.R. policy, the labour agreement, past experience and the needs and welfare of both the company and the employees in order to develop a sound solution. Successful personnel specialist must be people centered. They must be feeling sensitive, wants, and motives of other people. At the same time they must continually be cognizant of their obligation to preserve the structure and functioning of the organization. In fact, this really is the essence of H.R. management. Management must seek to so direct and coordinate the efforts of the people that the goals of the organization are achieved while at the same time providing need satisfactions for the members of that organization.

SERVICE
The service responsibilities of the H.R. department are apparent when one examines such things are as the employment, training, and benefits functions. The tasks of recruiting, interviewing and testing job applicants are performed in the H.R.Deptt.. Training programs are planned, Organized and often staffed through the H.R.Deptt. H.R.Deptt must see that adequate instructional materials and facilities are available. Once pension and insurance programs have been setup, all claims must be through the H.R.Deptt. The maintenance of adequate employee records is a service function that permeates all functional specialties within the personnel field

Control
The H.R.Deptt carries out important control functions. It monitors the performance of line department and other staff departments to insure that they conform to established personnel policy, procedures, and practices. The control function of the personnel department is quite comparable to the activities of a quality control group that measures product variables to insure conformance to engineering specifications or to the activities of the auditing staff that inspects accounting records to ascertain conformance with prescribed standards.

HUMAN RESOURCEDEPARTMENT FUNCTIONS


H.R. Management activities are carried on both by the staff H.R.Deptt and by operating management in the course of directing the activities of the work

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force. Variation from the pattern described may occur in particular companies because of special circumstances. This function includes recruitment, selection, and induction into the organization. The initial decision to add someone to the payroll is made by line management. It is also its responsibility to determine the content of the job to be performed and the employee qualifications necessary to perform the job satisfactorily. Very commonly, statements of job content and employee qualification have been previously worked out jointly between line management and the H.R.Deptt. These are recorded in the form of job descriptions and job specification. The H.R.Deptt must develop and maintain adequate sources of labour. It must set up and operate the employee selection system, which may include interviews, selection tests, a medical examination, and reference checks. Quite commonly the role of the H.R.Deptt is one of screening with the final decision to hire or reject being made by the supervisor who requested the new employee. However, in the case of large-scale hiring program of unskilled or skilled workers, the H.R.Deptt is commonly granted full and final authority to make the hiring decision. The new employees supervisor bears Important responsibilities for introducing his/her to the new work environment. This is often called orientation or indoctrination.

TRANSFER, PROMOTION, LAYOFF


For these tasks the H.R.Deptt serves primarily in a coordinative capacity. When employees are moved from one department to another either because of the needs of the business or because of individual requests, the personnel records may be studied to ascertain that they posses the requisite skills. Layoffs typically are processed by the H.R.Deptt to insure that the proper order of preference is followed. This can become complicated of combinations of jobs, departmental, and plant wide seniority rights must be observed. When a vacancy occurs in a position, it may be filled by promotion from within or by direct hiring from outside the company. This decision is often made jointly between the H.R.Manager and the executive in change of the department where the vacancy has occurred. Many companies may establish policies to cover matters of this type. The actual final decision as to which candidate is chosen for the promotion is largely made by the executive in whose unit the vacancy has occurred.

TRAINING AND DEVELOPMENT


On-the-job training and coaching are performed by the line supervisor or by a specially designated employee who acts in the role of an instructor. It is the responsibility of the personnel industrial relations group to determine training

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needs in cooperation with the line management. Once the needs are established, the personnel training specialists must design a program to accomplish the desired results. If the program takes the form of in service class room courses, it usually is administrated by H.R.Department. Coaching, performance appraisal, and post appraisal counseling, job rotation, understudies, and special broadening assignments are largely executed by operating managers but coordinated by a central H.R.Deptt. For those enterprise that are engaging in an organization development activity the personal manager or the personnel staff. For those enterprise that are engaging in an organization development activity the H.R.Manager serves in a consulting role to an operating department. He plans programs in cooperation with managers of operating departments, diagnoses people problems, conducts various workshop type programs, and provides feedback to the managers about ongoing problems.

COMPENSATION ADMINISTRATION
The work of designing and installing a job evaluation program is handled, for the part, by the H.R. department with some consultation with line managers . The decision to adopt a particular pay structure with pay grades and fixed minimums and maximums for the grades is a top management responsibility. The day-to-day work of analyzing jobs, evaluating their worth according to a formal job evaluation plan, and maintaining suitable records is are H.R.deptt.functions Periodic wage are conducted by the H.R.deptt, but any firm decision to rise or change the entire schedule is particularly always reserved for the chief executive officer of the organization.

HEALTH AND SAFETY


A significant part on occupational health programs is the identification and control of agents within the working environment that can cause occupational diseases. some agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat, radiation, biological substances and stress. Industrial hygienists are employed to identify and control such hazards to health. Other important elements of an employee health programs are pre-employment medical examinations, periodic examinations for those working on jobs having exposure to occupational disease-causing agents, rendering of first aid, treatment of minor ailments such as colds and headache, and providing health education information. Small companies typically hire physicians, nurses and industrial hygienists only on the consulting and part time basis. Large firms tend to be

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staffed with full time personnels in these areas. The safety program is directed toward the prevention of work injuries. The main element are engineering , education and enforcement. The safety director who I usually a member of HR department works closely with the plant engineering unit to have machines and equipment properly guarded. New production processes and machines must be o designed and constructed so that possibility of human injury is remote.

DISCIPLINE AND DISCHARGE


Discipline has two principal meanings. In the first sense it means training that molds or corrects. This means the achieving and maintaining of orderly employee behavior because the people understand and believe in the established codes of conduct. The second meaning of the term discipline refers to punishment of wrongdoers. The H.R. department commonly assumes the responsibility for formulating the list of necessary rules together with the range of penalties for each together with the range of penalties for each offense. Frequently this list of rules and penalties is discussed and cleared with high-level line management before it is issued and communicated throughout the organization. Most commonly, actual approval by the H.R.department has to be obtained before and employee may be discharged. The reason is that discharge is a very serve penalty and should be used only when a very clear case can be shown. In addition, it is especially vital to achieve companywide uniformity in the handling of such cases

LABOR RELATIONS
When a union has been certified by the national labor relations Board, as the result of an election, as the sole and exclusive bargaining agency for the employees, then management must bargain with it in regard to wages, rate of pay, hours of work, and other conditions of employment. The principal tasks involved in handling labor relations are contract negotiation, contract interpretation and administration, and grievance handling. The H.R.department plays very significant role in labor-management relations. The director of industrial relation usually serves as a key member of the bargaining team often acting a chief management spokesman. In operating on a day-to-day basis under the terms of the labor agreement, line supervision often finds frequently occasion to consult the H.R.department regarding such matters like allocation of over time, handling of transfers and layoffs, and the application

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of contract work rules.

BENEFITS AND SERVICES


Included under this category are pensions, group life insurance, hospital and medical insurance, sickness leave pay plans, supplemental unemployment compensation, loan funds, credit unions, social programs, recreational programs and college tuition refunds plans. The actual decision to establish or to expand these programs is nearly always made by top line management upon the advice and consultation of the H.R.department. The actual design of pension and insurance programs requires a great deal of technical knowledge. These programs are generally worked out in conjunction with insurance companies or insurance consultants. After these plans are installed, the day-to-day processing of claims is handled by the H.R.department.

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CHAPTER#3
Organization development is a general approach for improving the effectiveness of an organization that utilizes a variety of applied behavioral science methodologies. Among the objective of the OD are to increase the level of trust and supportiveness among people in the organization, enhance interpersonal, skills, make communication more open and direct, directly confront problems and to tap the knowledge of all who can contribute to problem solutions wherever they may be in the organization. Consultants are often involved in OD work they work jointly with management to collect data, diagnose problems and work of solutions. Typical kinds of OD activities are interventions are confrontation meetings, team buildings, survey field, back conflict resolution, laboratory training and managerial grid exercises and projects.

HUMAN RESOURCE PLANNING


Another new function that has emerged in recent years in human resource planning (also) called manpower planning). Sometimes a specific person or office has this as its primary responsibility; more commonly the responsibilities are shared by several people within the corporate personnel unit. Human resource planning is the process by which is a firm insures that it has the right number of qualified persons available at the proper times, programming jobs that are useful to the organization, and which provide satisfaction for the individuals involved. The principal elements involved in human resources planning are as follows: (1) goals and plans of organization; (2) current human resource situation including skills inventory; (3) human resource forecast including comparison of projected future demand for employees with projected supply; (4) designing programs
to implement the plans; and (5) audit and adjustment.

EQUAL EMPLOYMENT OPPORTUNITY


Very commonly the chief personnel executive in a company bears the major responsibility for insuring that the organization complies with the various equal employment opportunity laws and regulations. She or he often delegates the day-to-day detailed administration to someone within the H.R.department who either specializes in this field of work or who performs these duties along with others department such as the employment function. Usually the chief executive officer (CEO) of a company, whether

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she or he be called the chairman of the board or the president, plays a key role in the formulation and implementation of equal employment policy.

PERSONNEL INFORMATION SYSTEM


Today, many organizations have staffs of people trained in mathematical analysis, computers, and management information systems. Some companies have applied these capabilities to personnel work. Among the applications have been human resources planning, skills inventories, employee benefits analysis, and productivity studies

POLICIES OF THE BANK


The bank maintenance the account on cash basis under the historical cost convention and are in conformity with the provisions of C0-opertive societies Act, 1925. STAFF RETIREMENT BENEFITS The bank operates the following schemes for its employees: a) For employees who did not opt for the new scheme the bank operates the following: i) Approved contributory provident fun and ii) An approved gratuity scheme. NEW SCHEME For new employees and for those who opted for the new scheme introduced 1986 for both clerical staff and for officers the bank operates the following: i) An approved funded pension scheme for which monthly contributions are made: and ii) An approved non-contributory provident fund introduced in lieu of the contributory provident fund. TAXATION Provision for taxation is based on taxable after taking in to account applicable exemptions and rebates, if any, as laid down in the income tax Ordinance. 1979.
Internship report on the Punjab Provincial Cooperative bank Ltd. 40

INVESTMENTS Investments in marketable securities are stated at market value. Premium on Pakistan investment bonds are amortized over a period of ten years. ADVANCES Loans and advances are stated at their principal amounts, net of provisions for loan losses. The specific provisions for possible loan losses have been made as

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considered necessary after taking in to consideration the realizable value of assets held by the bank as security. TANGIBLE FIXED ASSETS Fixed assets, other than land which is not depreciated, are stated at cost les s accumulated depreciation. Depreciation is computed over the useful economic lives of the related assets and charged to income applying diminishing balance method except motor vehicles on which the depreciation is charged on straight asset where the asset has been used for more than six months in the accounting year. No depreciation is provided in the year of disposal. Maintenance and More training centers normal repairs are charged to income as and when incurred. Major repairs and improvements are capitalized. Gains or losses, if any, on disposal of fixed assets are included in current income. REVENUE RECOGNITION Revenue from advances and investment are recognized on cash basis.

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CHAPTER#4
1.

Different Models

INTRODUCTION
IN this chapter have some models that analysis and explain the real situation about the MCB. For gathering the real information about the opportunities and the threats that are facing the MCB this chapter include two models that are following.

y SWOT Analysis y PEST Analysis

1.1. SWOT Analysis:


THE overall evaluation of a company s strength, Weakness, opportunities and threats is called SWOT Analysis.

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STRENGTH:
The main strength of the bank lies in its Services. The other fact that contributes is approaching to each segment of society. Another positive issue that because its strength is innovation. Some others are as follows:
y y y y y y y y y

Bank reputation Technical management skills Customer satisfaction Promotion effectiveness Time based approach Continuous improvement Quest for quality Employees respect and dignity Good corporate citizenship

WEAKNESS:
Competition pressure: Bank has tough competition Pressure. We are having very well established and well reputed competitor in the market having

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addressing the same community as we are dealing is having good services. FINANCIAL PRESSURE: no doubt MCB has a lot of finance but due to competition pressure they have a need of finance.

OPPORTUNITIES:
For more amelioration there is a need of new market. Extra advertising support will enable us to improve services. Almost every organization has tendency to grow in size. We also have this opportunity.

THREATS:

y Weak economic conditions of Pakistan y Unregistered business concerns


1.2. PEST ANALYSIS AND ENVIROMENTAL SCAN

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A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in market require the constant attention of the market vouchers to identify promises business opportunities, see the shifting requirements of the buyers, evaluate change in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. These influences include:

y y y y

Political and legal environment Economic trends Socio culture environment Technological factors

2. POLITICAL AND LEGAL ENVIROMENT:

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Banks are strongly affected by the political and logical considerations. This environment is composed of regulatory agencies and government law that influence and limit various organizations and individuals. Mostly these laws create new opportunities for business. Business legislation has following main purposes

y To protect banking companies from unfair competition y To protect customers from unfair business practices adopted by banking companies y To protect the interest of society from unbridled business behavior.

3. ECONOMIC TRENDS:
A banking market requires better consumer market in volume along with higher borrowing power. The available borrowing power depends on:
y Consumer income y Saving rates y Consumption patrons

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y y y y y

Rates of interest Budget deficit Exchange rates Cost of living Inflation

4. SOCIO CULTURAL ENVIROMENT


A society is shaped by beliefs norms and values. People in a society consciously interact with:
y y y y

Themselves Others Organization Society

5. TECHNOLOGICAL FACTORS
Forces of technological advancement have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. New technology is creating deep rooted affects which

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could be observed in long run. The improvement techniques involved in online banking. IN brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition. RECOMMENDATIONS
1) The Human Resources should take less time in recruitment and training the staff. 2) Refreshing courses should be adequate and more frequent during the year. 3) The promotional criteria by the Human Resource Department should be defined and be as per rules. 4) More training centers should be established. If there is lack of resources, it is difficult, the training centers of the other organizations in the same capacity can be utilized by determining the terms and conditions. 5) During the training by Human Resource Department the ethical values should be more emphasized. 6) The proper and competitive evaluation of the methods and procedures adopted by other competitors will enhance the performance of Human Resource Department. 7) This is the era of Information Technology. The functions and procedures of the bank should be converted from manual to the automatic. It will enhance the performance of the Human Resource Department and ultimately of the bank. Human Resource Department should allocate resources for this purpose. 8) Human Resource Department may advice and train employees for one window operation in order to reduce the time and conserve the resources. 9) Agents for the promotion of the bank policies and to facilitate the customers by the Human Resource Department may be appointed with proper check and balance system.

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CONCLUSIONS:
No doubt bank is financial institute but the working substances are the human being .It goes with out saying that Human resources are the most important in the organization and so does the Human Resource Department .It integrate all the activities and functions of the bank like job analysis, recruitment, staffing, training, designing compensation package, employees appraisal system. Human Resource Department plays the key role in the hiring, retention, motivation and promotion of the employees .Actually it assign the specified duties to the specified persons in this age of specialization. Human Resource manager should be well versed and confident in his field. He should be humane, well natured and have go face reading capabilities .All this ensures his success .He should be of the notion victory is not the everything but the way of fighting is.