As a self-governing organization, the State Bank of Pakistan (SBP) is purposed at providing a stable and proficient financial structure for the entire country. SBP doesn't function alone; the Banking Services Corporation (BSC) was established to deal with the large bank's operational functions. Through its sixteen different branches, BSC implements policies of SBP and provides both the government and banking sector of Pakistan with banking services.
BSC's functions are wide-ranging, also providing other services to Pakistan's government as per requirements. Like most public sector organizations, Banking Services Corporation, Islamabad has a political and relaxed environment but is friendly for female employees because of the mutual respect. The hard-working staff is well qualified, but the organization is lagging behind in information technology.
Inconsistent policies caused by government intervention in appointing the head/Governor are also plaguing the organization. On top of that, a worsening economy, pressure from citizenry and rampant inflation rates work as enemies of the organization, attacking from all sides. Unfortunately, SBP, as prolific an institution as it is, is systematically failing to control the overall economy of Pakistan. SBP needs to train its employees in order to equip them with the latest techniques, introduce performance based incentives, and provide efficient career management practices in order to take most out of its employees.
Chapter 1
Introduction
1.1 Introduction
State bank of Pakistan (SBP) is the central bank of Pakistan. State bank of Pakistan established in 1948 under the state bank of Pakistan order 1948 (SBP, 2010).The bank started its operation on July 1, 1948. The officer in charge of the SBP is the Governor. The current Governor of State Bank of Pakistan is Mr. Shahid Hafiz Kardar (Wikipedia, 2010). Before this the reserve bank of India was working as central bank, after independence the reserve bank distributes the reserves between India and Pakistan. Under the State bank Pakistan order 1948 the bank was ordered to perform the duty of;
"Regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage" (SBP order, 1948)
1.2 Vision
"To develop SBP BSC (Bank) into a strong and dynamic institution, equipped with efficient and professional human resources base having necessary technology, fully capable of providing quality services to stakeholders and complementing State Bank of Pakistan in achieving its objectives". (SBP, 2010)
1.3 Mission
"To maintain an efficient currency management system, provide effective banking services responsive to changing environment so as to command trust and respect of our stakeholders" (SBP, 2010)
1.4 History
SBP Banking Services Corporation (Bank), Islamabad is one of the field office of State Bank of Pakistan, which was created as an independent subsidiary of the State Bank of Pakistan at Islamabad, and is delegated with the job of currency management and administration of foreign exchange departments, export and other finance, management of government accounts, Commercial Bank accounts and operational work related to Government Certificates. (SBP, 2010)
1.5 Functions and Responsibilities
SBP (BSC) Islamabad is an operational branch of the central bank, it is engaged in retail business including: Receipts, payments and exchange of bank notes and coins, collecting revenue (e.g. Taxes) and making payments for government and on the behalf of government, maintaining accounts of the government, local Financial institutes and other banks, providing loans and advances to the government, banks, financial institutions and local authorities and facilitating in inter-bank settlement system, operational work relating to management of debt and foreign exchange, dealing in prize bonds and other saving Instruments of the government. (SBP, 2010)
1.6 Structure
The bank is comprised of the following departments, their detail will be provided in the first part of the personal experience
1. Deposit Account Unit (DAU)
2. Public Account Unit (PAU)
3. Currency Management Unit (CMU).
4. National Prize Bond Unit
5. Internal Monitoring Unit (IMU)
6. Engineering Unit
7. General Services Unit (GSU)
CHAPTER 2
Personal Learning Experience
To join the SBP (BSC) Islamabad as an intern was an honor for me because it is the central bank of Pakistan, a regulatory and autonomous authority. I learned a lot during my internship period at bank. I joined the bank on July 19, 2010. It was a 6 weeks internship, I spent my six weeks in different departments as scheduled by the bank.1st week starting from 19th July in Deposit Account Unit (DAU), 2nd week starting from 26th July in Public Account Unit (PAU) , 3rd week starting from 2nd August in Currency Management Unit (CMU) , 4th week from 9th August at Prize Bond Unit (PBU), 5th week starting from 16th August in Internal Monetary Unit( IMU), 6th week starting from 23rd August in General Services Unit(GSU).
During this stay I was given two projects, one project was Improvement in Human Resource (HR) and the second one was the strengths and weaknesses of Cash Management Department. During my internship at SBP (BSC) Islamabad I visited all the departments of the bank and interviewed some people of them in order to get my projects done and understand the working of the various departments. First of all the learning with respect to my experience in different departments is as under.
2.1 Deposit Account Unit (DAU)
The first department that I visited was DAU. It is the part of the Banking Services Corporation (BSC) and is responsible for maintaining the Bank's accounts, reconciliation and also provides the remittance facility to Banks .Under this department the following functions are performed: (M.S. Bhatti, personal communication, July 21, 2010)
2.1.1 Reconciliation
Reconciliation is the function under this department. (M.S. Bhatti, personal communication, July 21, 2010)
2.1.2 Remittance facility
In order to facilitate movements of funds from one place to other place, SBP (BSC) provides remittance facility. (M.S. Bhatti, personal communication, July 21, 2010)
2.1.3 Bankers to bank
SBP (BSC) maintains the accounts of 41 registered banks. Whenever these banks need cash, State Bank provides that required amount. There is a limit for banks to have cash with them. If there is deficit with the bank, SBP (BSC) provide that cash to that bank and if there is surplus in that bank the extra cash will be deposited to the State Bank. (M.S. Bhatti, personal communication, July 21, 2010)
2.1.4 Export Refinancing
Export refinancing scheme starts in 1973 to earn more and more foreign exchange. SBP provide refinance at discounted rates. There are two types of financing; post shipment and pre shipment.
In Post-Shipment first the customer made the contract of export then get finance from the state bank, bank provides the loan for 180 days at lower rate. In Pre-Shipment first the customer take finance from the bank and then export is done. (S. Farhat, personal communication, July 22, 2010)
2.2 Public Account Unit (PAU)
SBP (BSC) provides banking services to Government through PAU. PAU is responsible for maintaining the account of Federal, Provincial, District and Zakat accounts. Another responsibility of PAU is the ZAKAT collection and maintenance of its balances. It also deals with the Receipts and payments: (M. Ashraf, personal communication, July 26, 2010)
2.2.1 Receipts
State bank of Pakistan receive the revenue on the behalf of Government from public. There are four major heads for revenues: income tax, sales tax, federal excise, and customs.
2.2.2 Payments
PAU is also responsible to make payments on behalf of government departments
2.3 Currency Management Unit
This unit is responsible to maintain the physical currency notes and coins. As there are four provinces. So four issue offices are established that are Quetta, Lahore, Karachi and Peshawar. The PSPC give supply to four issue offices and these offices further provide the cash to the State Bank and Commercial Banks. Also the Pakistan Mint provides the coins to these offices. (M. Nazir, personal communication, August 2, 2010)
2.3.1 Requisition for Notes
For requisition the average of last three to five years calculated by multiplying the monthly consumption with 3. All time the fresh notes present at state bank of Pakistan.
2.3.2 Notes in Stock
At State Bank of Pakistan the notes are in following form:
2.3.2.1 Fresh Notes
Fresh notes are the newly made notes that are directly received from PSPC. These fresh notes are counted by machine as there are no chances of forged notes. (M. Sadeeq, personal communication, August 3, 2010)
2.3.2.2 Reissue able Notes
These are the notes that came to SBP(BSC) from different sources after use but are in good quality and can be reissued. Sources can be commercial banks and chest offices. Their quality and quantity checked before sending to vault. (M. Sadeeq, personal communication, August 3, 2010)
2.3.2.3 Soiled Notes
These are tiered or unusable because of excess use. Soiled notes send to verification department. These are also called as cancel notes. (M. Sadeeq, personal communication, August 3, 2010)
2.3.2.4 Defective Notes
These notes are colored, washed or burnt notes. Some of the part of note is missing or sometime it's oily and therefore security features get damaged. The defected notes sent to examination hall for cancellation and then preserve in vault. Later on get them shredded in machine. If the picture of Quaid-e-Azam is disfigured then that note would not be get refunded or claimed. These are also called as claim notes. (M. Sadeeq, personal communication, August 3, 2010)
2.3.3 Gold Vault
The reserve of gold is kept in gold vault under high security even the officials are not allowed to enter in the vault. There is separate vault for reissue able and fresh notes at SBP; Main Vault, exchange vault, and prize bond vault. (M. Sadeeq, personal communication, August 3, 2010)
2.3.4 Main Vault
In main vault there are sub-vaults. All currency received from PSPC, Chest & Commercial banks are kept here whether soiled or re-issuable. (M. Sadeeq, personal communication, August 4, 2010)
2.3.5 Exchange Vault:
It consists of counted fresh notes and re-issuable notes. All the notes on counter for the payment are brought from the exchange vault .The chest notes, when received, send for counting and cancellation then kept in exchange vault. (M. Sadeeq, personal communication, August 4, 2010)
2.3.6 Prize Bond Vault:
The Unsold prize bonds kept in vault and sealed for two months then they carry out for sale .But these bonds are included in the draw and if any of these won the prize then that winning amount goes to Government account. (M. Sadeeq, personal communication, August 4, 2010)
2.4 Prize Bond Unit
Prize Bonds are bearer security and are major instrument of government to internally finance the expenses. Prize Bonds are under control of Ministry of Finance and National Directorate. The funds through Prize Bonds are used to finance government borrowing. (J. Rasheed, personal communication, August 9, 2010).
The Prize Bond scheme is the scheme of government of Pakistan and it is the part of national saving certificate. The SBP manage this scheme and perform following functions: decide for the terms and conditions for the scheme, increase or decrease the price and change in the denomination. (J. Rasheed, personal communication, August 9, 2010).
2.4.1 Old denomination prize bonds
Before 1999 the prize bonds were in the denomination of Rs.5/-, Rs.10/-, and Rs.50/- and called as lower denomination bonds. The large denomination is consist of prize bonds of Rs.100/-, Rs.500/-,Rs.1000/- both denomination issued in series with series naming as A, B, C etc. AA, BB, AB etc. with six digit number. (J. Rasheed, personal communication, August 9, 2010).
2.4.2 New Denomination Prize Bonds:
These denominations consist of three lower and three large denominations. The lower denominations consist of Rs.200/- Rs.750/- and Rs.1500/- and draw takes place after three months on the 15th of the every month. Large denomination consist of bonds of Rs.7500/-, Rs.15000/- and Rs.40000/- and drawn after every three months on 1st of the month. (J. Rasheed, personal communication, August 9, 2010).
2.4.3 Printing of the Prize Bonds and delivery to offices
The printing of prize bonds is done by PSPC. The PSPC make sure that the ink, paper and material is available frequently to facilitate the supply. (J. Rasheed, personal communication, August 9, 2010).
2.4.4 Sale of Prize Bonds
The prize bonds are bearer type bond so there is no requirement of the approval by the selling office and to write the name of buyer on the bond. The bonds are sold for the cash and no application is required to be submitted by purchaser. However the name of the selling office gets stamped on the bond. The bonds are sold on the counter after taking out from the vault, the teller will enter the particulars of the bond i.e. series, serial numbers and total pieces of fresh bonds.
(J. Rasheed, personal communication, August 10, 2010).
Encashment of the Bonds
The bond holders can en-cash the bond from any branch of state throughout the country. There is separate counter for the encashment of the bonds. While the encashment of the bond counter officer check for the genuineness of the bond, series and number, name of the place and issue of the bond. (J. Rasheed, personal communication, August 10, 2010)
2.4.6 Tempered or Defaced bonds
Any defaced or soiled bond would not be re-issued and is taken out of the circulation. (J. Rasheed, personal communication, August 11, 2010).
2.4.7 Payment of Prize Money
The payment of the prize money up to 20,000 is counter payable in form of cash after stamping the bond, but the prize money for greater amount would be paid after at least 10 days or maximum 1 month. The prize bond for the amount less than 10,000 is returned to the holder after payment. (J. Rasheed, personal communication, August 11, 2010).
2.5 Internal Monitoring Unit (IMU)
The Internal Audit Department provides important support in maintaining the public's confidence by performing independent reviews and reporting to the Audit Committee and Managing Director on their findings so that corrective actions can be taken. The Internal Audit Department assists operating management in achieving Banks financial and operating goals by controlling and by identifying weaknesses, and by providing recommendations. (R. Ahmad, personal communication, August 17, 2010).
2.6 General Services Unit (GSU)
General Services Unit has been established to provide an efficient service to the employees. GSU deals with salary, advances, pensions, loans etc. These are categorized as under: (J. Ali, personal communication, August 23, 2010)
Following are the subunits of General Services Unit:
2.6.1 Employee Benefits Division
This division is responsible for disbursement of monthly salary and allowances, reimbursement of educational expenses, management of staff loan cases and assessment of properties, payment of retirement benefits related to fund accounts and financing of life insurance policies.
2.6.2 Procurement Division
They are responsible for procurement of goods and services, support departments and offices in the procurement process and purchasing of stationary for Bank
2.6.3 Services Division
Services division is responsible for development of Business Plan, preparation of annual budget
and maintaining employee leave records
GSU also deals in the performance evaluation of the employees. There are two methods to evaluate the performance of the employees in SBP (BSC); Personnel Evaluation Report (PER) and Performance Management System (PMS)
2.6.4 Annual Merit Increase
The PER method is used to evaluate the performance for OG-I officers and the PMS method is for the evaluation of OG-II and above employees. SBP (BSC) gives Annual merit increase based on the performance.
This increments is based on the grades in performance appraisal and its different for OG-I and for OG-2 and above.
Now I would like to explain my projects that I have done during internship in SBP (BSC) Islamabad.
2.7 First Project
2.7.1 Introduction
HR serves as a progressive voice in a common system and strives to ensure competitiveness in the conditions of service for staff.
2.7.2Human Resource purpose and role:
The main role of human resource in an organization is to maximize the return for human capital and minimize the risk. Human Resources seek to achieve this goal by using its skilled and qualified individuals and their capabilities, with organization's ongoing plans. The purpose of human resource function is to implement the organization's requirement effectively while taking care of its legal and ethical rules.
2.7.3 Ways to improve HR quality in SBP: During our six week internship at SBP (BSc) Islamabad, we observed some areas that need to be improve and there should be some new techniques to be adopted. The productivity of the Human Resources is affected by the variety of factors.
To increase the working capacity of HR following points can be taking into consideration: performance appraisal, trainings, annual merit increase, work place ethics, motivation, career management.
2.7.4 The performance Appraisal:
During my visit in each department I observed that the promotions in SBP (BSC) Islamabad are performance based .For performance evaluation there is PER and PMS evaluation methods .PER was for OG-1 and PMS was for OG-2 and above.
In PER performance evaluation report.OG-1's supervisors simply evaluate his performance by filling a manual form that can be biased appraisal
In performance management system (PMS) of OG-2 and above there are two parts of it, PMS 1 and PMS 2. In PMS 1 the employee was asked to fill in a manual form and write his competencies and his goal for the next whole year and in PMS 2 employee was asked to evaluate his performance in accordance with his stated goals. Then this form was sent to his immediate boss who gives his feedback by giving scores out of 5 points. Then next level line manager evaluates employee's performance according to him and gave rank to the employee .It was noted the there was an Assistant Chief Manager whose PMS was filled by his first line manager DCM and then second line manager CM both rank him differently. Immediate boss was ranking him round about 3.7 and CM was raking him 4.7 there was the huge difference. Final score was given by taking average but due to huge difference average gets affected at large.
In PMS and PER there was no involvement of employee's colleagues, clients' etc. employee gets de motivated because of biased decision and ultimately his performance and promotion gets affected badly so I recommended 360 degree evaluation and one-on-one session.
2.7.4.1 360 Degree Evaluation
360 Degree appraisal is an automated system or process in which employees receive confidential, anonymous feedback from the people who work around them.360 Degree feedback incorporates multiple perspectives by using feedback from a variety of sources. These sources include peers, subordinates, customers, self, and supervisor may be called multi-source feedback or peer review.
The results of this type of feedback process provide an understanding how the employee is perceived from different perspectives. This process helps an individual understand how others perceive them. Feedback is essential to facilitating performance improvements. Feedback allows people to utilize their strengths to their advantage. Feedback informs employees which actions create problems for others and to know what changes may be needed.
In appraisal the employee must also evaluate himself; he should assess his performance during the specified period.
2.7.4.1.1 How it is conducted:
The 360 degree evaluation can be conducted in following steps; develop questionnaire, ensure confidentiality of participants, administer the feedback questionnaire, analyze the data, develop and distribute results.
Feedback results should be shared with the employee. It should not be mandatory that the employee share the results with their supervisor. However, you may want to make this an optional part of the performance review of the employee.
2.7.4.1.2Benefit:
This may improve service to customers as the employee will know that he will also evaluate him. 360 Degree Feedback offers a more complete picture of the employee's performance. This feedback can provide guidance on skills that an employee may need to develop and will lead to his promotion. Further this would motivate the employees for the better performance.
2.7.4.2 One-on-one session.
One-on-one review sessions allow the manager to map out developmental and performance goals and to give employees a chance to air grievances, clarify expectations, and discuss obstacles, achievements, and personal objectives.
One-on-one sessions will foster better communications of manager with employees and he would find annual reviews easier to conduct and far less likely to lead to any disconnects or surprises.
2.7.5 Trainings
The success of the bank's goals largely depends upon the availability of competent workforce equipped with the required skills-set and behavioral competencies to support modified processes in enhanced functional areas.
To accomplish the task, a separate Training and Development department was set-up in August 2007 with specific objectives of capacity building and skill development of Human Resource in the BSC on continuous basis. A comprehensive training strategy was devised by the Training & Development department which focused on meeting the immediate as well as future capacity building and skill enhancement needs of the employees.
In spite of these scheduled trainings we observed that the above set training design is not get followed and whenever there is a job rotation in the bank, employee was not given proper training and no mentor is associated with that employee. So there is need of proper training regarding; system training, and typing training
2.7.5.1 System training
Whenever there is job rotation in the bank that employee must be given system training according to the job requirement. Or a mentor can be set for the employee for proper guidelines. During our stay at SBP (BSC) we observed that employees are not well trained for using system e.g. Globus, Oracle. When the employee is to be shifted to the other job he has to be trained for the new system requirements also.
2.7.5.2 Typing Training
The employees typing speed is not as good as the requirement of their job. Most of the employees type slowly while looking at the keyboard. This increases the time for process of the payments etc.
2.7.6 Annual Merit Increase:
SBP (BSC) give annual merit increase based on the performance .This increments is based on the grades in performance appraisal and its different for OG-I and for OG-2 and above. It is shown in the table in annexure. One can easily see the differences in annual merit increase. How grades are rewarded in both categories of OG-1 and OG-2 and above. There is huge difference between reward of A grade of OG-1 and OG-2.Secondly differences between A and B and C grade rewards is very large. Above all this grade distribution is based upon force distribution.
This forced distribution or the bell curved distribution is equally not liked by all the employees as this criterion forcefully graded the good performer in B grade. In force distribution some percentage is set by the senior managers and only that percentage awarded with A grade in spite of achievement of all goals and equal performance, rest of the employees put in B category then after completing the percentage fixed for B category remaining of all given C grade. As there is not much difference in the duties but the there is considerable difference in AMI's. There should not be this much difference among the OG-I and OG-2 employee's AMI. all this situation also affects the performance of employees.
2.7.7 System Up gradation:
There is strong need for the up gradation of system, the system got hanged during the input of payment and customers have to wait for long. This affect the payment time to the customer and also the goals of the employees, if the employee has settled the goal to finish the payment in 10 minutes but the system got hang , then this would not possible for the employee to achieve his goal.
2.7.8 Complaints related One-on-One sessions:
In SBP (BSC) Islamabad there is no representative for the employees if any problem faced by them. We recommend the one-on-one sessions of employees with the M.D that could be arrange twice a year so that the employees can discuss their problems as in the private companies. This will help in motivating employees, which will lead to the improvement in the employee performance.
2.7.9 Social Activities:
Social activities has a great impact on the performance of HR as without them individuals become unfamiliar with their colleagues which may b result in leg pulling which is prevailing in SBP(BSC) Islamabad. Secondly there is no place where an employee can rest during break times and also chitchat with his employee colleague. There is lack of social activities at SBP (BSC) Islamabad. We suggest that there must be a sports room where the employees can play any game for their relaxation, and provide a room that where these employees can sit to have a chat.
2.7.9.1 Quarterly Informal dinners
Quarterly informal dinners should be arranged, during which conversation provide the chairman some insight into what their employees are experiencing and feeling and also have an insight to their problems that he could not assess by the executive meetings. So that employee will remain with the feeling that his problems will be going to listen and they will be get solved, which helps in increase in employee morale
2.7.10 Employee of the month:
There should be an employee nominated as best employee among all workers on the basis of his performance that he performed during the month. This would boost the morale of employee and motivate the employees for good performance to get the reward, as it's a natural phenomenon. That employee of the month would reward in number of ways; bonuses, dinner vouchers, monetary benefit.
2.7.11 Workplace Ethics:
Workplace ethics and environment have a severe impact on employee performance as environment affects the employee working positively or negatively. The environment of the bank is not that much clean as it should be , there is bundles of files on every desk that are not in use and also the seats are not arranged in proper manner this create disturbance.
2.7.11.1 Dress Code:
It was observed that employees don't follow proper dress code set by management. If an employee can't even follow basic directives of the management how he will be going to follow other directives. Due to lack of following dress code everyone remains in a relaxing mood there is no tight environment which effects the efficiency of employees there is no dress code for the employees in the bank, if there is any dress code in the bank then they are not following it. The management should define a dress code and if any of employees not follow it then he has to pay the heavy fine.
2.7.11.3 Smoking
According to the rules and regulations smoking is not allowed in office hours. But we observe that most of employees use to smoke on their seats, which have bad impact on the employee adjacent to the smoking employee and affect his work badly. For this issue we suggest that these employees are allowed to smoke in some separate area so that other employees would not get affected.
2.7.13 Career Management
There is lack of career development in SBP (BSC) Islamabad and no career path developed for the employees. A number of employees have not been promoted for 10 to 12 years. And they even don't know the reason of it which results in de motivation of employees which in turn affects the performance of employees. If there would be proper career management of employees they will be going to know lacking in them and can be able to know the main factor of why they are not getting promoted through feed backs given in career management
2.7.12 Motivation
There is lack of motivation among employees as they are not satisfied with their promotions. Employees are on their respective seats since 10 to 12 years without getting promoted. As per employees the individuals who are in the good books of senior management get promoted due to his links. Lack of motivation is also due to the improper performance appraisal setup, work place environment, no one on one session, force distribution, AMI. This lack of motivation leads to ineffective and inefficient work as employee will pursue with mind set that whatever would be done by us is of no use so there is a high need of it by adapting some above mention details
2.8 Second Project:
2.8.1Cash Management:
2.8.1.1 Introduction:
The cash management at central bank level is related to its printing, counting, security and supply of currency to the institutions. The central bank is responsible for the control and supply of currency it's a primary function of central bank. All the institutions in the country get the currency from the state bank and also get new notes in exchange for the reissue able notes.
2.8.1.2 Strengths and Weaknesses of cash management:
During my 6 weeks internship at state bank Islamabad we observe some weaknesses and strengths in the cash management system of SBP (BSC) Islamabad.
2.8.2.1 Weaknesses:
2.8.1.1 Counting of reissue able notes with machines:
It is observed that counting of reissue able notes is being done with machines instead of by hands this would lead to passing of forged notes without detection. Now a days there is developed technology based machines are used for the counting and the detection of the forged notes. These dual performing machines would reduce the human error chance and also time lapse for the payments. So there is need to adapt this technology.
2.8.1.2 No separate cabins for workers dealing directly with cash on counters:
There are separate cabins for dealing with exchange of coins, note, tax payments etc but these cabins are not completely partitioned due to which the workers are disturbed by other employees next to them during their duties of counting the notes and other delegated work.
2.8.1.3 Withholding capacity:
As per rules of the SBP the extra cash with the commercial banks are being deposited with the State Bank, this practice is followed as per rule but when the commercial banks intimate the SBP about the extra cash the bank ask them to wait for the time that it will allow the bank to bring that extra cash to the SBP. This lapse of time would trouble the bank as the bank has to insured that amount with the insurance company. There should not be any time lapse for the extra cash to be deposited at the state bank.
2.8.1.4 Environment of heavy petty cash
During our visit to heavy petty cash room we observe that the environment is much stressed and suffocated. Some attention must be paid to the environment in cash department.
2.8.3.1 Strengths
2.8.3.1.1 Liquidity
State bank is very liquidated. It fulfills the cash requirements of the commercial banks and DFI's, for that purpose all the banks put their requirements with the state bank and then State Bank provides the cash. We observed that there is no chance that the bank lacks the liquidity it always fulfill the liquidity requirements of the banks and DFI's.
2.8.3.1.2 Strong security check
The cash management system of SBP (BSC) is well managed and there is strict security check for the delivery and the deposit of the cash from banks. The reserves and the currency in form of chest notes and fresh notes are kept in triple and double lock system in vaults.
2.8.3.1.3 Confidence and reliable:
State bank of Pakistan is reliable and the banks & DFI's have confidence for its services. As bank never delay the delivery and no fraud was detected in bank's history.
Chapter no 3
Analysis
3.1 SWOT Analysis:
3.1.1 Strengths
3.1.1.1 Checks and Balances
There is strong system of checks and balances in the bank and hence no employee is ever found doing any unethical activity. Every transaction is counter checked by higher level officer. For example every a transaction by OG-1 is approved by OG-2 and so on.
Secure environment for Females
SBP-BSC has a secure and suitable environment for a working woman. Females are given respect and are dealt with honor which is rare in case of private sector organizations.
3.1.2 Weaknesses
3.1.2.1 Relaxed Environment
Work environment of the bank is very relaxed and employees do not put all their efforts to their work. This is because the job security the employees are enjoying.
Low employee motivation
Motivation level of employees is very low because of the absence of performance based incentives. There is no such thing as employee of the month etc. therefore there is a very low level of motivation.
Old IT infrastructure
The software and hardware of the bank IT infrastructure is old and outdated. This is causing delay in processing the transactions and ultimately the frustration of the customers.
3.1.3 Opportunities
3.1.3.1 Launch other products
The infrastructure of the bank can is suitable for offering latest and advanced products like online check clearance and processing etc.
3.1.4 Threats
3.1.4.1 Political influence
Contemporary governments have a great political influence on the bank in the sense of designating its Governor General and other major positions. This poses a serious threat to the corporation because any incompetent head appointed by the ruling govt. can harm the integrity and policies of the corporation.
Chapter 4
Conclusion and Recommendations
4.1 Conclusion
State Bank of Pakistan (BSC) is the subsidiary of the State Bank of Pakistan and is created to focus on the retail banking functions of the State Bank of Pakistan. It started its functions on 2nd January 2002. The operations of its 16 field offices are regulated by the Head Office situated at Karachi, The main functions and responsibilities of the Bank have been segmented through Charter, SBP (BSC) Ordinance 2001.
During my 6 week internship I learn a lot from all the departments of state bank of Pakistan (BSC) Islamabad. All the departments are working effectively and efficiently specially the cash management department which is the core department of the bank. The security system in CMU is well equipped and the employees are working efficiently as all the practical work is done in CMU. During Ramadan SBP issue 96.93 billion fresh notes. The bank is performing its best .But there are some areas which need improvements.
4.2 Recommendations
During my stay at State Bank of Pakistan (BSC) I observed some weaknesses that need improvement:
4.2.1 Technological up gradation
There is a need for the up gradation of the hardware and software; the system frequent freezes during the input of payment and customers have to wait for long. This affect the payment time to the customer and also the goals of the employee, if the employee has settled the goal to finish the payment in 10 minutes but the system got hang , then this would not possible for the employee to achieve his goal. So the systems should be updated with the latest technology and software like GLOBUS which is used in SBP (BSC) should be updated to increase effectiveness and efficiency of employees towards their goals.
4.2.2 Latest procedures and best practices should be adopted
Latest procedures and best practices should be adopted for motivating employees like:
4.2.2.1 360 Degree appraisal
360 Degree appraisal is an automated system or process in which employees receive confidential, anonymous feedback from the people who work around them.360 Degree feedback incorporates multiple perspectives by using feedback from a variety of sources. These sources include peers, subordinates, customers, self, and supervisor may be called multi-source feedback or peer review.
In appraisal the employee must also evaluate himself; he should assess his performance during the specified period.
4.2.2.2 One-on-one session.
One-on-one review sessions allow the manager to map out developmental and performance goals and to give employees a chance to air grievances, clarify expectations, and discuss obstacles, achievements, and personal objectives.
One-on-one sessions will foster better communications of manager with employees and he would find annual reviews easier to conduct and far less likely to lead to any disconnects or surprises.
4.2.2.3 Employee of the month
There should be an employee nominated as best employee among all workers on the basis of his performance that he performed during the month. This would boost the morale of employee and motivate the employees for good performance.
4.2.3 Staff should be trained
The success of the bank's goals largely depends upon the availability of competent workforce equipped with the required skills-set and behavioral competencies to support modified processes in enhanced functional areas.
4.2.3.1 System training
I observed that employees are not well trained for using system e.g. Globus, Oracle. When the employee is to be shifted to the other job he has to be trained for the new system requirements also.
4.2.3.2 Typing Training
The employees typing speed is not as good as the requirement of their job. Most of the employees type slowly while looking at the keyboard. So it should be improved by proper training or by having different types of typing competitions between employees.
By implementing all the above recommendations given in this section and in projects SBP (BSC) as a whole and its employees will be going to be more efficient and effective
