HISTORY OF THE NIB BANK:

NIB Bank Limited started as NDLC-IFIC Bank Ltd. which was incorporated in March
2003 as a public limited company. It started operations in October 2003 when all assets,
liabilities, rights and obligations of the former National Development Leasing
Corporation (NDLC) and Pakistan operations of IFIC were amalgamated with and into
the bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of
Credit Agricole Indosuez were also amalgamated with and into NIB. In March 2005
Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis
Investments.

This shareholding was further enhanced to over 70% in June '05 following an increase
in NIB's paid up capital to Rs.3.4bn.

NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th
quarter of 2007. Total assets have grown from Rs.9bn in December 2003 to Rs.87bn
(excluding acquisition of PICIC through rights) as of September 30 2007, a CAGR of
85%. Loan growth has been equally rapid, increasing from Rs.7bn to Rs.43bn in the same
period (a CAGR of 64%), resulting from successes in both the commercial and consumer
business.

Deposits for the same period have grown at a CAGR of 95%, reaching Rs.45.3bn. The
overall client base of NIB has also witnessed a tremendous growth in the same period as
of September 2007; from a few thousand to over one hundred thousand.NIB Bank's
vision is to rank amongst the top 5 banks in the country.

Therefore towards end of June 2007 it acquired majority shares of PICIC with the aim of
merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited
into NIB . The acquisition was financed through the country's largest private sector rights
issue, with resultant increase in NIB's paid up capital to Rs.21.4bn. The PICIC
acquisition has bought with it another subsidiary "PICIC AMC" and an affiliate "PICIC
Insurance". NIB already has a shareholding in NAFA, an Asset Management Company
(AMC); thus its asset management business will now also be increased, with
diversification in the insurance business.

The legal merger of PICIC, NIB & PCBL took place on December 31, 2007, once all
regulatory approvals were in place. NIB Bank is led by Khawaja Iqbal Hassan, supported
by four business heads and ten business enabling function heads. The merger has resulted
in a vastly expanded network of 240 branches and total assets o
over Rs.185bn. Consequently NIB has the second highest paid up capital of around
Rs.27.5bn and ranks number 7 amongst commercial banks in terms of distribution
network. Merger synergies will accrue through lower cost deposits, enhanced customer
service delivery channels and overall improved efficiencies. These would provide a
competitive edge in the face of increasing competition. Temasek Holdings remains the
largest single investor in NIB Bank.

This merger is one step forward in consolidating the banking sector as envisioned by
State Bank of Pakistan and enhancing FDI as per the Government of Pakistan's
objectives. The powerful franchise of the three merged entities has now been brought
together to form a large and powerful bank. Going forward management is confident that
the combined bank will be a top performer delivering a wide range of financial services
through an extensive branch network. The asset management arms and insurance affiliate
are also expected to perform well and provide an attractive dividend stream.

GOAL SETTING THEORY

Goal setting theory was born out of Aristotle’s theory of final causality and then
researched in greater detail by Edwin A. Locke in the 1960s to understand how goals can
influence an individual’s performance. The basic theory behind goal setting is that human
behavior is galvanized and governed by goals and ambition. Today, goal setting

theory is very important not only for those studying organizational psychology, but for

anyone seeking to increase productivity, enhance performance and reach for greater
heights of success. Goals are able to motivate and spur you to meet your ambitions
because it helps you focus your efforts on that objective. Every objective we have
requires a list of tasks to be executed. By setting goals, we’re able to persist with the list
of tasks and are compelled to develop strategies in order to reach our objective. The
incredible results achieved with the goal setting theory explain why it’s not just colleges,
universities and sports institutions that use it to obtain results, but in businesses too where
survival is based on ensuring positive outcomes.

Having objectives is not the issue, but striving to attain them is. Following are the points
that help you to achieve goals:
•
State your goals in specific terms. Understand what your goals are and know
why you’re selecting these goals.
•
Make your goals attainable. There is no point setting goals you believe are
unattainable. The best way to do this is to break your goals down into actionable
steps.
•
Measure your goals. Set a timeframe, or a milestone that can put the pressure
on you to meet your objectives.
ANALYSIS:
To what extent you and your colleagues feel that the company sets challenging goals for
itself and expects quality performance and outstanding production?
Answer Log Table:
Low standards 1 2 3 4 5 6 7 8 9 10
High standards
Scores
-
-
-
-
- 1 3 11 7
3
E
-
-
-
- 4 2 1 5 4
9
D

When we asked the question relating to goal setting theory from employees in general we
got responses which led us to decide that employees wanted to decrease the standard of
goals set for them by management. But after the thorough analysis of individuals we
found about 72% employees who were satisfied with the standards of goals set for them
and not only this some them wanted to improve standards of goals with little difference
according to our provided scale. The rest of 28% employees feel to decrease the standard
of goals.

Now the question arises why in general the answer was different instead of having
majority satisfied with the standards. The reason is that those 32% employees who
wanted to decrease the standard marked greater difference on the scale we provided
which affected the final result but the analysis shows that the majority is satisfied with
standard of the goal sets for them.

But very few of the employee’s answers led us to decide that employees wanted to
decrease the standard of goals set for them by management.
But too much difficult goals can also de-motivate many employees. Company should set
there goals that there employees expect to achieve.
EMPLOYEE INVOLVEMENT PROGRAMS:
A participative process that uses the entire capacity of employees and is designed to
encourage increase commitment to the organization success. Employee involvement
programs include the following.

•
Participative management
•
Representative Participatio
Quality circles
•
Employee Stock Ownership Plans.
Participative Management:

An open form of management where employees have a strong decision-making role.

Participative management is developed by managers who actively seek a strong
cooperative relationship with their employees. The advantages of participative
management include increased productivity, improved quality, and reduced costs.

ANALYSIS:
To what extent you and your colleagues feel that you can make decisions and solve
problems
without checking with your managers?
No responsibility 1
2
3
4
5
6
7
8
9 10 Expected responsibility
Scores
-
-
4
2
7
9
3
-
-
-
E
-
-
-
-
3
8
8
6
-
-
D

We asked the question from the employees to what extant you and your colleagues feel
that you can make decisions and solve problems without checking with your managers?
Basically this question is related to participative management that is one of the types of
employee’s involvement program to increase the involvement of employee in decision
making process. After analysis of the questionnaire we found that the current
participation level in NIB Bank is 48% this shows that the employees are authorized to
make decisions for routine works or in normal situations but not in critical situation.
However, the rating scale in our questionnaire suggests that employees wanted to be
trusted and allowed to make decision to further extent by 20% more. Participative
program are also very helpful to increase the moral high and productive of the employee.
In participative management employees are the trusted by the management and also
increase the management confidence on their employees. Participation increases
commitment to decision. Employees are less likely to undermine a decision at the time of
implementation if they share in making that decision and participative management
makes employees job more interesting and meaningful to them and participative
management increased productivity, improved quality and reduced costs.

MOTIVATION:
The process that accounts for an individual, intensity, direction and persistent efforts
towards attaining a goal.
Reward system

The only way employees will fulfill your dream is to share in the dream. Reward systems
are the mechanisms that make this happen. "However, reward systems are much more
than just bonus plans and stock options. While they often include both of these
incentives, they can also include awards and other recognition, promotions, reassignment,
non-monetary bonuses (e.g., vacations), or a simple thank-you.

ANALYSIS:

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
•
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.

We asked the question from the employees related to reward system that to what extent
they are being recognized and rewarded on their good performance and how these
rewards motivate them to work. We ascertained that most of the employees in NIB Bank
are satisfied but very few of employees showed that there are not rewarded for their
performance but the overall result is positive and this shows the level of motivation
employees get from rewards. Many of the employees told us they are being rewarded
after accomplishment of their sales target in such a way that their management take them
to the picnic or invite them for dinner and the rewards like picnic and dinner from NIB’s
management is being rewarded most frequently.

And other very interesting thing which we found in NIB Bank is that their management
doesn’t fire their employees even their performance level is not up to the standard of the
company. For example if an NIB’s employee continuously does not achieve its target for
the period of three months the management does not fire that employee and we can say
that this is kind of surety from NIB’s management to its employees and this kind of
relaxation motivate employees a lot and employees secure and they are not always
threaten from their management to achieve sales targe

Here we also want to share that in NIB Bank we did not find the employee recognition
programs like (employee of the year, employee of the month) and we feel that this kind
of recognition program can also increase the level of motivation and productivity of
employees of NIB Bank.

But in whole we discover that the employees of NIB Bank are very much satisfied from
rewards that are being given to them and the rewards in NIB Bank is based on the
performance of the employee except one that we mentioned above and in NIB Bank most
of the rewards are given to employees are of monetary nature and Management of NIB
Bank continuously appreciates the good work done by the employees for the achievement
of goals, which motivate the employees to worker harder for the achievement of goals.
LEADERSHIP STYLES:

From Mahatma Gandhi to Jack Welch and Martin Luther King to Rudolph Giuliani, there
are as many leadership styles as there are leaders. Fortunately, business people and
psychologists have developed useful, shorthand ways of describing the main leadership
styles that can help aspiring leaders to understand and adapt their own styles and
leadership impact.

Whether you are managing a team at work, captaining your sports team or leading a
major corporation, you leadership style is crucial to your success.
10 of the most frequently talked-about leadership style are as follows:

1. Autocratic leadership
2. Bureaucratic leadership
3. Charismatic leadership

4. Democratic leadership or Participative leadership

5. Laissez-faire leadership
6. People-oriented leadership or Relations-Oriented leadership

7. Servant leadership
8. Task-oriented leadership
9. Transactional leadership

10. Transformational leadership

ANALYSIS:
Key: 1 = Never; 2 = Seldom; 3 = Occasionally; 4 = Often; 5 = Always
S.No.
QUESTIONS
SCORING
1 2 3
4
5
1
Tells group members what they are supposed to do.
- - 4 18 3
2
Acts friendly with members of the group.
- - 3
5 17
3
Sets standards of performance for group members.
- 2 5 12 6
4
Helps others feel comfortable in the group.
- - 4
8 13
5
Makes suggestions about how to solve problems.
- 2 4
6 13
6
Responds favorably to suggestions made by others.
- - 6 10 9
7
Makes his/her perspective clear to others.
- - 2 16 7
8
Treats others fairly.
- - 2
5 18
9
Develops a plan of action for the group.
- 1 14 7
3
10
Behaves in a predictable manner toward group members.
- 3 12 2
8

We asked different questions relating to the leadership style from NIB Bank employees
to know which leadership style their leader uses and we found that two of the leadership
styles that are task oriented and people oriented or relations-Oriented. The results we got
from employees of NIB Bank that 53% of the employees feel that their managers are
relationship oriented leaders and remaining 47% feels that their managers are task
oriented leaders so this shows that the NIB Bank has got the combination of leaders that
are task oriented and relationship oriented. This shows that NIB Bank have the leaders
that perform better in all situations and can manage their teams more effective in
favorable conditions and also in very unfavorable conditions.

PATH GOAL THEORY:

House’s PATH GOAL THEORY describes how leaders can motivate their followers to
achieve group and organizational goals and the kinds of behaviors they can engage in to
accomplish that Path Goal theory suggests that effective leaders follow three guidelines
to motivate their followers. The guidelines are based on the expectancy theory of
motivation. Effective leaders who follow these guidelines have highly motivated
subordinates who are likely to meet their work goals and perform at high levels.
Determine what outcomes subordinates are trying to obtain in the workplace. For
example, what needs are they trying to satisfy, or what goals are they trying to meet?
After gaining this information, the leader must have control over those outcomes or over
the ability to give or withhold the outcomes to subordinates.

Reward subordinates for performing at high levels or achieving their work goals by
giving them desired outcomes.

Make sure the subordinates believe that they can obtain their work goals and perform at
high levels. Leaders can do this by showing subordinates the paths to goal attainment
(hence the name path goal theory), by removing any obstacles that might come along the
way, and by expressing confidence in their subordinates capabilities.

House identified four types of behavior that leaders can engage in to motivate
subordinates:
•
Directive behavior (similar to initiating structure) lets subordinates know what
tasks need to be performed and how they should be performed.
•
Supportive behavior (similar to consideration) lets subordinates know their
leaders cares about their well-being and is looking out for them.
•
Participative behavior enables subordinates to be involved in making decisions
that affect them.
•
Achievement-oriented behavior pushes subordinates to do their best. Such
behavior includes setting difficult goals for followers, expecting high performance,
and expressing confidence in their capabilities.
ANALYSIS:

We designed a different questionnaire especially for the TOP MANAGEMENT OF NIB

Bank and the questions were related to PATH GOAL THEORY as the questionnaire
belongs to the top management so we asked four top level managers of NIB Bank to fill
this questionnaire list of their names and designation are given below:

By studying our questionnaire we found different behaviors of leadership and there

contribution in the organization’s behavior. We found different results for each behavior
after analyzing the answers of our respondents which are given below:

Directive Leaders Behavior:

The most contributive behavior in leadership behaviors in NIB Bank having 27% share in
leadership behavior was found to be directive behavior which is being frequently used in
the organization we targeted. The benefit of using directive form of leadership which

is characterized by greater control, defining what needs to be done, allocating resources

and establishing clear expectations.
The directive leadership behavior takes a more pragmatic approach to handling affairs
in NIB Bank and is characteristically utilized in corporate turn-around situations.
Supportive Leaders Behavior:

The second most contributory behavior in leadership behaviors in NIB Bank having 26%
share in leadership behaviors was found to be supportive behavior the results obtained
shows that supportive behavior used in NIB Bank is almost the same as the use of
directive leadership behavior with having difference of only 1% which is not a very big
figure.

Participative Leaders Behavior:

Participative leadership behavior is the least used behavior in NIB’s culture with having
23% this shows that the NIB Bank leaders do consult with their subordinates while
making a decision but at low frequency as compared to other PATH GOAL leadership
behaviors.

Achievement Oriented Leaders Behavior:

The third most contributory behavior in leadership behaviors in NIB Bank with having
percentage of 24 this shows that the leaders of NIB Bank set challenging goals for their
subordinates with low frequency but they expect from their employees to perform at their
highest level.

The results of our analysis shows that there is no such big difference in leadership
behaviors used in NIB Bank and this is a very good sign for NIB Bank that their leaders
manage their subordinates according to different situations with different leadership
behaviors.

NORMS:
“Norms are shared group expectations about behavior and how members ought to
behave.”

Norms provide groups with control and predictability and give members a sense of
security and comfort. Norms are also the way we express values, attitudes and beliefs.
Norms put boundaries on members that may be narrow or wide.

Many norms in organizations originate from management expectation or from work rules
and procedures of the formal organization. They develop and operate in informal groups.
Many central work group norms revolve around productivity. Norms can put lower and
upper limits on productivity. Controlling productivity not only spread the work ought to
more people for a longer period, but also prevents management from rising its
expectation.
Some organizations have norms emphasizing social concern for employees this norm
foster taking care of people who needed or other wise contributing to the quality of an
employee’s life at work. Management can foster many norms that contribute to
organizational success, such as norms effecting work quality, helpfulness or customer
relation. A norm of secrecy may be critical to keep competitors from stealing ideas.

ANALYSIS:

Norms are of four types. The one we quire about is social norm. The reason of selecting
social norm is that our culture is based on collectivism so the importance of social norms
is very high. The situation of norms in NIB’s culture is fair enough according to the result
of our questionnaire most of the employees follows the norms set by the organization and
they are satisfied with them, but we found some employees who are willing to improve
the conditions i.e. norms the calculated value of there willingness is about 25%. The
major factors of social norms are friendliness, trust and mutual support. According to the
employees in NIB Bank the conditions of trust and friendliness are pretty good and they
are willing to increase mutual support.

It is necessary to emphasize on social arrangement norms in country like Pakistan

because of its collectivism culture and these norms helps the organization to get the
participation of their employee in positive manner to achieve the goals set by the
organization these kind of norms also motivates the employees to remain in organization
because of friendly culture in organization social arrangement norms also helps the
employees to interacts with each other in more friendly manner which will increase trust
among them and with there top management.

If these norms are valued by the management then it will positively affect employee
satisfaction and productivity and it will also enhance the organization culture
CONFORMITY:
“Conformity can be defined as a change in a person’s behavior or opinions as a result of

real or imagined pressure from a person or a group of people”.

Who does Conformity affect?

Conformity can affect people in all different ways, positively and negatively.

In task-specific situations, those who are led to believe they do not have the required
aptitude, their tendency to conform increases.
Individualistic societies are less likely to conform than collectivistic.

How does Conformity work?

An individual will most likely conform if:

The majority consists of experts

➢ The members of the majority are important to the individual
➢ The individual can relate to the majority on some level--there are similarities

between the individual and the group

ANALYSIS:

Through our questionnaire we analyzed the pattern of answers given by employees and
we found many similar answers in regard of questions and it shows greater extend of
conformity among employees of NIB Bank as they have almost marked similar options
given in each questions of our questionnaire. The level of conformity shows there good
relations and understanding with each other which also shows that they will not leave
each other in hard times but on the other hand the high level of conformity indicates the
danger of employees saying always yes to other’s decision instead of thinking critically
about it and there might be a chance of employee saying yes under pressure in the fear of
loosing group and may result in loss of any useful idea.

After Asch’s study about conformity, in the world the conformity is decreasing as the
level of knowledge and awareness are increasing and the result of our questionnaire
shows high level of conformity, we can suggest the reason “collectivism culture of
Pakistan”

TEAMS:
A group whose individual efforts result in a performance that is greater than the sum of
the individuals input.
Guideline for team leaders set by NIB’s management:
Definition:
Has a natural authority, generates commitment and builds team cohesiveness by setting a
clear
vision for the team, reflected in core values.
EFFECTIVE BEHAVIOUR INDICATOR
LESS EFFECTIVE BEHAVIOUR INDICATOR
MORE OF THIS
LESS OF THIS
Communicates frequently a realistic picture of future
plans so people know what has to be done and why?
Arrives at decision by consensus, where appropriate,
to gain team commitment.
Is supportive of the team / individuals and helps in
overcoming problems to achieve targets.
Leads by example; displays behavior which reflects the
desired work norms and values.

Spends time finding out the way individuals want to be managed and work together;
adapts leadership by style to match.

Maximizes the available resource by constructing well- balanced teams; acknowledges

and helps others values the unique contributions of each member.

Identifies own leadership style and strengths, adapts

these to specific situations.
Follows up with dissenters or blocker to contain
negativity.
Takes independent decisions and asks the
team to follow instruction without questioning.

Waits for team to ask for information instead of proactively keeping them informed of the
‘big’ picture.

Exhibits high personal energy when initiating

action but does not follow through.
Talks about the theory and principles of
leadership, yet not reflected in behavior.

Uses the abilities of staff for own personal and career gains; does not share benefits and
praise but passes on criticisms and blame.

Does not seek to identify and discuss the values of the team to ensure everyone is
working towards a common goal.

Avoid admitting own mistakes or limitations.

Guidelines for reducing conflicts between team members set by NIB’s management

Imag

ANALYSIS:
After visited to NIB Bank we discovered that the NIB Bank employees comprised of self-
managed works teams according to employees responses they feel greater level o

esponsibility on their shoulders and they manage the things like planning, scheduling of
work, and assigning task to the member of team, control the pace of the work, make
decisions through discussion between the team members, take actions to solve the
problem and also interact with their customers and we found that the employees called
their colleagues relationship officer rather than sales officer.

QUALITY MANAGEMENT:
CREATIVITY

Image 2
together to generate ideas; uses tools and
techniques to simulate others’ creativity.
CONTINUES LEARNING

Imag 3
conclusion

After studying and a analyzing the results of our research on the various issues related to
the organizational behavior within the organization that are affecting the performance of
its management and particularly its employee, followed by several general and specific
list of questions we asked and the interviews we conducted during our visit to the two
branches of NIB bank one on “Tariq Road” and other on “I.I Chundrigar Road”, we are
able to draw out our conclusions about this report.

NIB Bank is a global bank which is also operating in Pakistan. The organization behavior
regarding goal setting for employees we have concluded that the management of NIB
Bank is effective in setting goals according to the competition in the banking sector of
Pakistan. As the requirement of growing banking sector it is necessary to set challenging
and effective goals so as to become market leaders. Despite of setting challenging goals
the employees of NIB Bank are satisfied with these challenging goals and performing
well to achieve the goals which were provided to them.

The management style in NIB Bank is kind of participative management in which

employees are given chance to share their ideas for decision making so the NIB Bank is
utilizing its employees by getting different ideas from different employees this provides
greater chances for getting better and innovative ideas. Not only this but from this
activity employees feel motivated because they think they also have the authority in
decision making process and they are also a part of an organization. During the interview
of an employee NIB Bank he told us “All the employees here are given title of
relationship officer rather than any other designation and at the beginning of each month
the top level management visits every branch and arrange meeting with all the employees
of the branch and discuss the problems faced by every employee and immediately tries to
resolve the problem and this is the major motivating factor for us”. For motivating their
employees management uses different types of motivating tools the innovative ones we
found are ESOP (Employees Stock Ownership Plan) and the pay plan for less productive
workers. By providing ESOP the employees gains the ownership of an organization and
work hard not only for their benefit but also to maximize the profit of the organization.
The next thing about 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.

As the motivation and reward systems are up to the expectation of the employees so
the employees are very much satisfied and don’t want to leave the organization.

The leadership styles in NIB Bank are mixture of both the task oriented and relationship
oriented but it is little lien towards relationship oriented leadership style. The leader’s
 behavior consisting of all the leaders’ behavior provided by House’s Path Goal Theory
having almost same percentages with very low variation.

Overall we concluded NIB Bank inherits strong organizational culture having values for
leaders and as well as for employees and the organization behavior is up to the mark for
any company being in Pakistan.

RECOMMENDATION:
1.NIB Bank should offer training and development sessions for undergraduates;
this will help NIB Bank in future while recruiting employees.

2. NIB Bank should reduce conformity by giving rewards to employees for suggesting more
effective idea in the benefit of the organization this will not only provide wider range of
ideas but also act as a motivational tool for their employees.

3.NIB Bank should arrange extra curricular activities like cricket matches on inter
bank level to further improve relations between employees as other organizations
are organizing (for example ABN Amro, Mobilink, etc.)
4.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