Beruflich Dokumente
Kultur Dokumente
Final Project
MBA Semester 1, Batch: 2010-2013
Submitted to: Ms Saira Farooqi Submitted by: Wajiha Shaukat Nazish Tariq Hira Ikram
Acknowledgement
We are very thankful to everyone who all supported us, for we have completed our project effectively and moreover on time. We are equally grateful to my teacher Ms. Saira Farooqi. She gave us moral support and guided us in different matters regarding the topic. She had been very kind and patient while suggesting us the outlines of this project and correcting our doubts. I thank her for her overall support. Last but not the least, we would like to thank Mr. Waqas Shaukat who helped us a lot in gathering different information, collecting data and guiding us from time to time in making this project .Despite of his busy schedules ,he gave us different ideas in making this project unique. Thanking you all.
Page 2
Contents Executive Summary COMPANY PROFILE PLANNING Organizing Staffing Leading Controlling Recommendations & Suggestions References 4 5 7 10 16 22 25 29 30
Page 3
Executive Summary
In this report firstly we have given overview of the organization that Dubai Islamic Bank originated on 1975, and in Pakistan bank commenced operations in 2006. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Mission of the bank is to provide Sharia compliant financial services and products through the best of innovation, talent and technology. The bank has the following departments: Corporate banking Consumer financing Deposits priority banking Shariah
This report also give reader full information about the hiring process of the bank. Types of Recruitment, the training process is also described in this report, the performances of the employees are appraised yearly at Dubai Islamic Bank. Our project would focus the different aspects of the management, leadership style, management structure, and role of mangers that how they motivate their employees and guide them to achieve the targets. At the end, the controlling managerial function is described that how the bank control its employees, and how they measure effective performance. The core of this project is to describe the various aspect of management in the organization and analysis of management practices.
Page 4
COMPANY PROFILE
Dubai Islamic Bank has the unique distinction of being the worlds first full-fledged Islamic bank, a pioneering institution that has combined the best of traditional Islamic values with the technology and innovation that characterize the best of modern banking. Since its formation in 1975, Dubai Islamic Bank has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally. Islamic banking and finance is now one of the worlds fastest-growing economic sectors that comprise more than 400 institutions with assets under management in excess of US$ 1 trillion (US$1,000 billion). In this context, the role of Dubai Islamic Bank is even more impressive. Yet, the bank remains true to its roots as a customer-centered organization where close personal service and understanding form the basis of all its relationships. Tradition and heritage join with a commitment to flexibility, innovation and modernity, so that customers of every nature are provided with comprehensive solutions to all their financial needs. Dubai Islamic Bank Pakistan Limited (DIBPL) Junaid Ahmed - CEO DIBPL commenced operations in 2006. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. DIBP is pursuing an aggressive expansion plan and already has 18 branches in nine major cities including Karachi, Lahore, Rawalpindi, Islamabad, Peshawar, Faisalabad, Multan, Gujranwala and Gujrat. Under its consumer banking division, the bank is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks. It also has expertise in providing Retail, Private, Small and Medium Enterprises, Corporate, Investment Banking and Advisory services. The Bank launched Pakistan's first Islamic Visa Debit Card and introduced financial products covering Home Financing, Auto Financing, and Depository products. DIBPL has also introduced Priority Banking and Internet Banking, both of which are being recognized as benchmark products in their respective categories. Besides regular banking services, the Bank is committed to bringing foreign investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy. In a short span of two years Dubai Islamic Bank Pakistan has emerged as one of the fastest growing banks in Pakistan DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in Dubai. Dubai Islamic Bank
Principles of Management: Final project Page 5
Page 6
PLANNING
Page 7
Vision:
Dubai Islamic Bank Pakistan will be the leading provider of world class banking the Islamic way by being the first choice of our customers and our employees.
Mission:
Dubai Islamic Bank Pakistan provides Sharia compliant financial services and products through the best of innovation, talent and technology.
Conflict resolution:
Almost all the day to day operations of the bank are well structured. For such problems they follow pre structured policies and procedures. If any ill structured problem occurs, managers come to action. They are pretty competent enough to face such issues. Also they try to help and guide their sub ordinates as well in this regard. Also they have formed a policy formation process for such problems.
Policy making:
It is very important for organizations to review their policies from time to time especially when the environment is highly disruptive and unpredictable. Policies need revision to be effective at different times. Intense scrutiny of the workforce and the environment is done. Management takes up the affairs and conducts board meetings (presided by the CEO) and an agenda is prepared. Management discusses issues and policies with concerned people. Any suggested policy is approved by the board of directors. The upper management after making policies communicates to respective departments or branches. The policies are implemented as soon as possible and the follow up process is very strong. Lower management can only give suggestions but its the upper management which holds the authority of policy making. The bank has a comprehensive framework of written policies and procedures on all major areas of operations such as Credit, Finance, Treasury operations, internal audit and compliance approved by the board.
Recommendations:
DIB should promote its service of E-Statement through different programs. In a short span of two years Dubai Islamic Bank Pakistan has emerged as one of the fastest growing banks in Pakistan, recording an incremental growth of 152 percent in its total asset base which stands at PKR 21 billion as of Dec 2007. DIBP customer base has grown by 228% to approximately 21,000 customers in 2007; up from 6,400 in the year 2006.DIB should maintain its growth rate by launching unique projects.
Page 9
ORGANIZING
Organizing:
Principles of Management: Final project Page 10
The Board of Directors set the goals and targets and then delegate authority for the accomplishment of these goals.
Hierarchical Structure
The hierarchical structure of the bank is given below. The bank has 10 departmental heads. Corporate banking, Consumer banking and distribution department have further 3 regional heads. Then they have supported staff which includes senior managers, managers, assistant managers and clerical staff. All other departments have supporting staff directly.
Page 11
Board of Directors
CEO
Head of distribution
Head of Legal
Head of Operation
Head of compliance
Head of HR
Head of finance
Head of treasury
Regional Heads
Support Staff
Regional Heads
Support Staff
Support Staff
Regional heads
Support Staff
support staff
Support staff
Support Staff
Support Staff
Support Staff
Support Staff
Page 12
Departments:
Corporate banking Consumer financing Deposits priority banking Shariah 1- corporate banking: Banking institutions execute transactions directly with customers rather than corporations or other banks corporate banking offers tailor made products. DIBPL provides a wide range of services specifically designed to assist Pakistani businesses. Key Features of Corporate Banking
Cash Management Services Trade Related Services Investment Banking Services Services for Small and Medium sized Enterprises
2- Consumer financing: Finance packages are designed to meet our needs and with DIBPL Internet Banking service, we can manage our finances with a click of our mouse! Key features of consumer banking Auto finance Business finance Home finance 3- Deposits:
DIBPL offers a variety of depository account types.
Page 13
MURABAHA: It is a sale contract in which an individual/entity sells an asset at cost plus an agreed profit. The sale price could be paid on spot or deferred. IJARA: It is a leasing contract in which the owner of an asset or its usufruct sells the usufruct of the underlying asset to the lessee for an agreed rental. MUDHARABA: is a form of partnership where one party provides the funds while the other provides management services against a pre-agreed share in the profit of the investment. However, if there is any loss, it is borne solely by the capital provider. MUSHARAKA: is a partnership with all the parties contributing to the capital of the Musharaka on the basis of profit and loss sharing. The profit shall be shared as per the agreement but the loss will be borne pro rata. SALAM: It is a kind of sale in which payment is made on spot while the delivery of the goods is deferred. ISTISNA: It refers to a sale in which the buyer orders the would-be manufacturer to produce and deliver a fully described commodity .from raw materials of its own. It is basically an order to manufacture.
Page 14
Page 15
STAFFING
Page 16
Recruitment:
Recruitment is the development of a pool of applicants for jobs in the organization.
Page 17
Internal Recruitment includes in-house placement and in house notice. The transfer and
promotion of employees from one department to another is included in it. Internal recruitment is very reliable for top management positions of the bank.
External Recruitment includes hiring and retaining of new people. The bank hires fresh
graduates in their MTO program every year. The external Recruitment is further divided into two categories: Direct Recruitment: Direct hiring is the one in which employees drop their CV at the bank or apply online. Campus Recruitment: Campus recruitment is the most reliable source to hire competent students. Professional teams go in different universities to select students. The screened students are, then, interviewed by a panel.
Referrals: Whenever there is a vacancy in the bank, People within the organization and
from outside the organizations are recommended to the top management. They are then called for an interview. Referral is a very secure and effective way of hiring people.
Recruitment of interns:
Dubai Islamic Bank offers 4 to 6 weeks internship program in summer vacations. Students are given a chance to work in the department of their choice. Students can drop their CV directly in the office or they can apply online. Selected students are called for an interview.
Page 18
Nature of Job:
The bank hires both permanent and contractual employees.
Training managers and faculty is hired for training purposes. Dubai Islamic Banks management believes in enhancing the skills of the employees. The training centre of the bank is in Karachi. The centre is responsible for providing multi level high quality training programs to all the employees of the Bank. It trains people in the following areas: Consumer Banking Operations Credit Marketing and Credit Proposals Credit administration Credit documentation Marketing skills Corporate banking Customer services leadership and management skills Grooming of the employees Performance appraisal skills
Page 19
It is compulsory for each new employee to attend the introductory training session.
Qualitative: It is in subjective form. Quantitative: It is performa based. The bank has different performa for different departments. Behavior Appraisal:
In the service oriented industry, behavior is as important as performance on job. Thus each employee is rated against his behavior.
Incentive Plans:
Incentives are provided to Managers and executives and to Middle and lower level employees. These incentives are: Attractive salaries Employees provident fund Gratuity fund Medical insurance Life insurance Performance based promotions and bonuses Various types of staffing loans Assistance in pursuing higher education Rewards on completion of professional qualifications
Page 20
Recommendations:
On job Training must be compulsory for every employee. Character building programs should also be designed for all types of employees. The hiring should be fair and more chance should be given to fresh graduates. Advertisement for jobs must be given in newspapers. The proper human resource department must be developed in every major city of Pakistan.
Page 21
LEADING
Page 22
Management Structures:
Dubai Islamic bank has a particular management structure which helps to lead the bank in a proper manner. Basically the leadership styles how the bank leads its employees to achieve the targets. These targets are given by the top management to the bottom ladder. The management structure is given as follows: CEO Group Head Regional Manager Area Manager Branch Manager Assistant Managers
Leadership Style:
The top management of the Bank gives different targets to the heads of all departments. These heads further delegate their authority to their subordinates. The subordinated are guided and supervised by their respective heads. The subordinates are continuously analyzed by their immediate boss. If a subordinate fails to achieve a target then the leader conducts a meeting to know the reason behind the failure. Thus Dubai Islamic Bank has a Directive/ Path leadership style; they guide followers in the direction of established goals by clarifying role and task requirements.
Recommendations:
Young leaders should be encouraged New ideas must be encouraged More authority must be delegated Negative feedback must be avoided by the managers
Page 24
CONTROLLING
Page 25
Controlling:
Controlling involves monitoring actual performance, comparing actual to standard, and taking necessary action. It is an efficient way to: Find out the accomplishments of their goals, and if not, then the reasons behind it. Managers make it sure everything is there where it is supposed to be. It plays a vital role in empowering employees which can result in effective performance.
Financial control:
DIBs performance is measured by its productivity. Financial ratios are much help to them.
Information control:
DIB has strong network of communication i.e. all branches are inter linked thanks to IT. Information control is critical because managers need to be informed with the right information at the right time.
Page 26
Security policy:
Due to prevailing law and order issues, bank has revised its security issues. One or two guards are posted on gates. Armed guard will not allow any equipment and furniture to pass the gates without a proper gate pass issued by the Head of Administration/ Head of IT. Administration dept also maintains a record of the entire gate pass issued.
Counseling:
A counseling session of the employee causing problem is conducted by the supervisor. If shortcomings judged, then he is judged under GAP analyses or some kind of training is given which is mentioned in his performance appraisal or immediate supervisors recommendations.
Complaint process:
Complaint process is not only essential for customer satisfaction; but it is also important for formulation of new policies or a review of the existing ones. Also it helps to indicate any discrepancy in services procedure. DIB has the following complaint process: There is a proper complaint management system in which the customers fill a brochure which consists of different questions regarding the opinion about the bank, their satisfaction level etc which they drop it in a complaint box. All the complaints are collected and sent to their main branch where they are thoroughly analyzed and reviewed by the responsible persons and then a committee is formed which further investigates. Telephone Banking: Dubai Islamic Bank Pakistan Ltd. offers a state-of-the art 24/7 Phone banking service which provides quality services and financial solutions to esteemed customers. Their highly trained Phone Banking Officers are available round the clock to assist and provide their customers with services like Account Balance Inquiry, Transaction Inquiry etc to general enquiries. Visa Global Customer Assistance Service (GCAS) this service provides emergency assistance and any query/ complaint reception around the world
Page 27
Recommendations:
The staff members monitoring expansion are far less than the requirement due to expansion. The bank should also try to achieve ISO Award Certificate to gain country wide reputation in quality standards.
Page 28
Page 29
References
Waqas Shaukat (AVP) Farhan Riaz (Relationship Manager)
Page 30