Beruflich Dokumente
Kultur Dokumente
DATE: 15/06/2010
In the name of Allah, the most beneficent and merciful who gave us strength and
Knowledge to complete this report. This report is a part of our course Organizational
Behavior. This has proved to be a great experience. This report is a combine effort of Hamza
Mushtaq, Nadeem Shehzad, Muhammad Zeeshan and Ikram Haider.
We would like to express our gratitude to our organizational behavior teacher Mr. Ahmed
Rana, who gave us this opportunity to complete this report. We would also like to thank NIB
team to help us in a deep study of their organization. They gave us many Helpful comments
which helped us a lot in preparing our report.
CONTENT TABLE
1. INTRODUCTION TO COMPANY
Brief History
Ownership Structure
Location of Office
Number of Total employees
Head of Administration Department
Key People/ Designations of the Administration Department.
5. ORGANIZATIONAL CHART
6. CORE COMPETENCIES
7. COMPETITIVE ADVANTAGE
8. CORE AREAS OF RESEARCH IN OB
Biographical characteristics
Ability( physical and intellectual)
Personality and jobs
Managing emotion at work
Importance of attitude ,values and job satisfaction in
organizations( Implications for managers)
Employees motivation
Team management
Leadership process implications
Power and politics in organization
Conflict , negotiations and inter group behavior
Organizational structure and designs
Organizational culture
Organizational change
Work stress and its management
9. RESAERCH DESIGN
Questionnaires ( open and close ended)
Interviews
NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was incorporated in March 2003
as a public limited company. It started operations in Oct 2003 when all assets, liabilities,
rights and obligations of the former National Development Leasing Corporation (NDLC) and
Pakistan operations of IFIC (International Finance Investment and Commerce Bank) were
amalgamated with and into the bank with a paid up capital of PKR.1.2bn. In April 2004 the
Pakistan operations of Credit Agricole Indosuez were also amalgamated with and into NIB.
Towards end of Jun 2007, it acquired majority shares of PICIC with the aim of merging
PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited (PCBL) into
NIB. The acquisition was financed through a combination of the country's largest private
sector rights issue and commercial debt, with resultant increase in NIB's paid up capital to
PKR 28.4 billion.
Finally on December 31, 2007 after obtaining the necessary approvals from State Bank of
Pakistan, NIB successfully merged its operations with those of PICIC and PCBL, hence
creating the 7th largest bank in the country by virtue of branch network and asset size. NIB
has almost 4900 employees. NIB business units include:
Treasury
NIB is the 7th largest commercial bank in the country in terms of number of branches and
now boosts an extensive branch network of 226 branches. The bank, as of September 30,
2009 has a total asset base of over PKR.189 billion, making it the 7th largest bank in terms of
assets.
With deposits surging over PKR 105 billion, the bank is 10th largest in terms of deposits, and
has advances of PKR 96 billion. Moreover, it is also the 2nd largest bank in terms of paid up
capital after Standard Chartered Pakistan. The bank has been Rated AA- (Long term) and
A1+ (Short Term) by Pakistan Credit Rating Agency Limited (PACRA).
In June 2005 Temasek Holdings of Singapore acquired 73% shareholding in NIB Bank,
through Bugis Investments. This holding has declined post merger to 63%. Temasek Holdings
is an investment company owned by the government of Singapore.
1.1 MANAGEMENT PROFILE
Treasury and Capital Markets Group Head (TCMG): Shah Miftaah Ul Azim
Azmi
Head of Small Medium Enterprises and Commercial Business Group Head
(SMEC): Masood Tyabji
Board of directors:
NIB bank is operating in almost every big city of Pakistan. It has branches in 59 major
regions of Pakistan which make it accessible for every individual and businesses to start
banking relations with the bank.
Mission:
To improve the quality of life for millions
Vision:
To be the most admired Financial Institution in Pakistan
Values:
PASSION
RESPECT
INTEGRITY
EXCELLENCE
FAIRNESS
3. GOALS AND OBJECTIVES (SMART)
Corporate governance
The financial statements prepared by the management of the Bank present fairly its
state of affairs, the result of its operations, cash flows and changes in equity.
Proper books of account of the Bank have been maintained.
Accounting policies have been consistently applied in the preparation of financial
statements and accounting estimates are based on reasonable and prudent
assessments.
International Accounting Standards, as applicable in Pakistan, have been followed in
the preparation of financial statements.
There are no doubts upon the Bank's ability to continue as a going concern.
There has been no material departure from the best practices of corporate governance
as detailed in the listing regulations of the stock exchanges of Pakistan.
There are no statutory payments on account of taxes, duties, levies and charges which
are outstanding, except as disclosed in the financial statements.
4. ORGANIZATIONAL ENVIRONMENT
External Environment:
External Customers
Valued product and services
Customer retention
Increased customer base
Profitability and growth
Internal Environment:
Talking about the internal approach adopted by the bank NIB, is focused on;
There are few areas which are the core competencies of the NIB bank.
Management Team
Customer relationship management
Minimization of working capital
Value creation
Technology
User friendly software
Competitive environment
7. COMPETITIVE ADVANTAGE
Core competencies of any firm help them to gain fair competitive advantage over its
competitors. NIB bank has certainly made its place in past 7 years and gave a tough time to
its competitors. Day by day, NIB is growing its assets and customers as well. The deposits
ratio is also increased in past two years.
The main reason of this growth can be said, relying on different factors like; the managing
people are very effective and have skills to organize the functions and operations of the
organization with great proficiency. Thats why the team of NIB is providing a remarkable
output to its organization.
The NIB is pretty much concerned about the relationship with its customers. The staff is
always helpful and solves the problems of customers in no time. Similarly they create value
for their customers by creating differentiation in their services in comparison to other banks.
The banks motive is to provide satisfaction to all of its customers.
In recent years, it is quiet noticeable that banks started to implement latest technology to
decrease the supply chain and get rid of several expenses like stationary and others. NIB bank
is not behind them, as most of the shares are held by Temasek Holdings of Singapore, so they
have made surprisingly changes in the organization regarding technology. In result, NIB is
able to cut its expenses to a huge extent.
The environment of the bank branches is also a friendly type. Each customer is greeted and
asked for support. They staff guides them to their desired counter. For employees, there are
set targets which they have to achieve. There are strict parameters to ensure the quality of
work is being done.
The above mentioned factors make the NIB bank a successful bank and to have a competitive
edge, which they are enjoying as growth every year.
This chart of growth will really help to understand that how much progress NIB is making
against its core competencies.
8. CORE AREAS OF RESEARCH
This research involves the interview with the Branch manager. We asked a series of question
to them and in result collected the information under following headings.
The biographical factors have a great affect over job design and job posting. When an
individual mail his/her resume, it has all the information regarding his skills, education,
extracurricular activities and his/her past experiences. We only short list those candidates who
meet our set criteria.
For example, if we have a vacancy for BOM then obviously we will go for that candidate
who has a MBA or M.com degree and has at least 5 year experience in the banking sector. We
will not select those candidates or even short list them when he/she dont have such
characteristics which make him/her deserving for the job.
In our organization, most of the work requires intellectual ability for the successful execution
of the work. If a person who is mentally fit and can handle the stress of the work then we are
able to hire him on the post for which he may be capable.
As most of the situations occur, requires good and sensible decisions to be made. In the
financial institution like NIB, a responsible behavior is highly needed.
Finding a career that best fits your personality profile may be a factor to consider when
thinking about professional success. Far too often, people start out on career paths for the
wrong reasons: direction by well-meaning parents or teachers, taking a job "while they figure
out what they want to do" and never moving on, for example.
People who excel in their careers are usually highly motivated and energized by their jobs.
They wake up in the morning eager to get to work because their career lets them take
advantage of the natural preferences and strengths of their personality. Their job is not a
chore to be endured but a vehicle to exercise their talents. They achieve the most important of
things in job satisfaction: "a fit" with who they are.
Therefore, it is our sole duty to hire a person on that job which fits their personality in all
ways. If he likes to meet people and have high energy of persuasion, then we will hire him on
the marketing post which includes attracting new customers to the organization. Also for
convincing potential corporate world to join NIB for the better services they can ever have.
8.4 Managing emotion at work
The management is highly concerned about managing emotions at work. As the job
responsibility is higher, so the irregularity of unwanted emotions can be destructive. Being
aware of the results, the employees are properly trained and motivated to get over their
emotions successfully.
In case of management, no manager will be able to control unless he is well aware of the
emotional conditions of his staff and respond to them. Similarly, managers cant hold their
staffs emotions unless they have a full control on their own.
8.5 Importance of attitude, values and job satisfaction in organizations (Implications for
managers)
Therefore, to ensure that employees have no problems in their working environment, our
organization has a monthly audit system. This audit provides the feedback of the current
condition in any branch, thus organization takes necessary measures if the things are going
reverse.
We asked the question related to rewards that how rewards motivate employees in NIB Bank
and we found that there are different kinds of rewards NIB Bank gives to their
employees which are as follows:
Cash Bonuses
Promotions
Make team leader
ESOP (Employee stock ownership plans)
Increment in salaries
Allowances like (Fuel allowance, mobile allowance)
We found one very different kind of reward in NIB Bank that they motivate
their employees whose performance is not up to the mark by giving them the
salaries equivalent to the market value of the any other employee of same rank so as
to motivate their employee.
8.7 Team management
We try hard to make up such teams which help in obtaining organizational goal. The
managers are a kind of role models; if they are doing right then obviously the other
employees will do right. Mangers are solely responsible to ensure that their team is working
well or not.
Managers are very helping in our organization. They take care of the all situations which are
occurring in the branch. They properly guide their staff time to time. Their behavior needs to
be positive regardless of their feelings. Managers are properly trained with the passage of
time and this surely help in regulating the daily business in an efficient way.
The leadership styles are very supportive and kind of target oriented. All employees have
certain tasks and targets which they have to attain. Sometimes, there are critical conditions in
which some individuals are not able to obtain their targets due to different reason then the
managers help them and find out solutions for that particular situation, together.
In case of power, every individual has a capacity to make decisions, but to some extent.
Without any appropriate instructions from top level management, no one can make decisions
on our own. We are bound to strict policies of the organization.
Secondly, I dont think there is any role of politics in our organization as it is not necessary in
the financial institution like NIB bank.
The conflicts arent open and there may be few, but in most of the cases conflicts dont
happen too frequently. If someone thinks that he is not treated well or awarded well according
to his performances: there is a channel or feedback system, employees are free to submit their
problems and top level managers take actions on that problems.
There is no jeopardy sort of conflict which requires negotiations to much extent, but it the
duty of the managers to keep an eye on the employees that what is happening between them
and take appropriate action according to the situation. If the things got worse, managers have
to play a role of negotiator.
The organization is following the tall structure and is totally centralized. However, some
decision power is given to the managers. For example, the can grant loans up to a defined
limit.
8.12 Organizational culture
Organization is followed by many changes since it was founded. There were mergers and
acquisitions, technological changes, implementation of new systems, merging employees of
more than two organizations thus resulting in overlapping culture. Although it was difficult
for the management but they managed it with their extraordinary skill, and by proper
communication with the employees.
The management played a role of a guider and full support was provided by them. The
employees were taught that these changes are helpful for the growth of their careers.
NIB recognizes its employees as individuals and respects their responsibilities to the outer
world. We have set criteria to monitor the efficiency of the work being done by the
employees. We provide the work load to a particular employee as much he/she can handle.
The employee also trained to set them according to situation, for example, they know that in
the start of month the work load will be higher and it will decrease gradually.
Secondly, we dont exactly organize any extracurricular activities for the employees.
However, considering social responsibility as an intimacy tool, we organize different event,
for example last year we organized an event named Hum saaf, sab saaf.
9. RESAERCH DESIGN
Interview:
The following set of questions helped us to acquire the information provided above:
Questionnaire:
Here is the set of questions which we asked to the employees to complete our analysis report.
Question 1:
Out of 100%
90
80
70
60
50
40
30
20
10
0
Yes No
Question 2:
Out of 100%
70
60
50
40
30
20
10
0
Yes No
Question 3:
Out of 100%
100
90
80
70
60
50
40
30
20
10
0
Yes No
Question 4:
Out of 100%
80
70
60
50
40
30
20
10
0
Yes No
Question 5:
Out of 100%
120
100
80
60
40
20
0
Yes No
Question 6:
Out of 100%
120
100
80
60
40
20
0
Yes No
Question 7:
Out of 100%
90
80
70
60
50
40
30
20
10
0
Yes No
Question 8:
Out of 100%
70
60
50
40
30
20
10
0
Yes No
Question 9:
Out of 100%
90
80
70
60
50
40
30
20
10
0
Yes No
Question 10:
Out of 100%
120
100
80
60
40
20
0
Yes No
Overall, the satisfaction of employees is 82%, which is a good sign. This is why the NIB
bank is growing rapidly, and making progress in every field of day to day banking.
10. CONCLUSION
By studying various areas of the organization, we concluded that overall the organization is
practicing OB strategies.
Their focus is on growth and all the employees are assigned with the targets to
accomplish success for the organization and to sustain this growth. The speed with
which the NIB is growing, no doubt, it will sooner be a leading bank of Pakistan.
The employees placement on the jobs is quiet remarkable. They assess the personality
and then select the employee on that post for which he is capable.
The training and motivational steps are also good and different from the other banks
operating in Pakistan. The pay plan for less productive workers, the company
motivate their employees whose performance is not up to the mark by giving them
the salaries equivalent to the market value of the any other employee of same rank.
The culture of the organization is mixed of many cultures. They respect the
employees emotions and support them whenever there is problem. Also, the culture
we can say is task oriented. Although, the organization is centralized but still the role
of management is great to handle and control organizational resources efficiently and
effectively.
11. RECOMMENDATIONS:
NIB Bank should offer training and development sessions for undergraduates; this
will help NIB Bank in future while recruiting employees.
NIB should introduce Dress-Down day i.e. employees should be given permission
to wear dresses other than formal dresses on certain days so as to make them relaxed
while work.
NIB Bank should arrange extracurricular activities like cricket matches on interbank
level to further improve relations between employees as other organizations are
organizing (for example ABN Amro, Mobilink, etc.)
The stress management criteria is found weak, they should take measure before the
employees become boredom.