CHAPTER-05

RECOMMENDATIONS

5.1RECOMMENDATIONS FOR THE OVERALL

FUNCTIONING OF MCB
1. MCB should take care while conducting marketing research and
adopting new policies and procedures for getting its marketing share
regarding advances.
2. The existing policies should be reviewed and there should be
permanent revision of these policies from time to time.
3. MCB should adopt once again aggressive strategy because the number
of its competitors is increasing day by day.
4. There should be clear-cut delegation of authority and responsibility.
5. All the departmental heads should be given clear authority and
responsibility.
6. Since in MCB there is overlapping of functions, therefore each
department should be functionally defined, and all those departments
should be amalgamated whose functions are similar, to reduce cost.
7. The communication system of the bank should be improved by
installing new equipments.
8. Co-ordination can be improved amongst different departments by
adopting proper channels of communication.
9. Proper survey and research should be conducted before the
introduction of any new schemes, i.e. cost and benefit analysis should
be viewed.
10. A secure system for transfer of money should be established and with
out the receipt of legal document no payment should be made. The test
key codes should be revised from time to time and should be kept
secret.
11. While credit extension prudential regulations should be kept under
consideration.
12. Loan procedure should not be cumbersome and should be made easy,
so as to ease the customers.
13. Prolonged documentation should be avoided.
14. Proper sector wise loan should be disbursed in order, so that every
sector should get appropriate portion and all these sectors should
simultaneously develop.
15. In order to mitigate inefficiency, the management should adopt some
management principle i.e. proper job, clear cut division of work should
be introduced.
16. The advances department should be made free from political influence
in order to enable the deserving persons to get the loan.
17. The bank should prefer tangible securities before advancing loan.
18. The bank should take care that the loan that it has advanced is being
utilized for the purpose for which it is advanced.
19. The process of bill collection should be made faster, by in time
delivery and receipt of the credit claims.
20. Foreign exchange should be equipped with modern ways, so as to
receive foreign currency rate within due lime.
21. Recruitment in the bank should be made purely on merit basis, and the
HRD should be fully free from any influence of higher authority and
Staff Union in conduction of tests and in the selection of candidates.
22. There should be proper training (Up to date) for newly selected
employees.
23. There should be refresher courses for officers then to tackle marketing
complexities.
24. MCB should also send employees for training and seminar arranged by
other banks, so that they can compare the procedures adopted by other
Bank, and adopt what ever better and new.
25. Salaries should commensurate with job, for this purpose a proper job
analysis system should be introduced.
26. On passing IBP MC13 give only cash prize and advance increments, it
should be replaced by promotion so that the new highly qualified
person can get promotion.
27. There should be interdepartmental transfer of employees, so that they
should know about all departments, in this way a proper coordination
could be achieved.
28. Transfer for punishment purpose should be avoided because it not only
disturbs the prevailing branch conditions but it also affects employee's
efficiency. More over the transfer should be made free from union
influence.
29. Before transferring a person to a place, his qualification and experience
should be matched with responsibilities of the post.
30. In MCB President and General Secretary of Staff Union are exempted
from duties, but all those who re the members of union do not attend
the bank in time, so the responsibilities of these persons should be
clearly defined for which they will be asked.

5.2 RECOMMENDATIONS FOR THE SPECIFIC

BRANCH
Based on my research I would strongly recommend specifically to the
MCB Mardan some practical solution to the problems, which are present
in their system. Recommendations are given below:
1) Improvement of working condition
2) Improvement of interrelationship b/w employees
3) Improvement of communication
4) Reduce the tension of the employees how to implement these
recommendation can be like as given below.

5.2.1 Improvement of Working Condition

The working conditions of MCB Mardan are not up to the standards; the
building is not furnished and decorated. Any body when enters to bank does
not feel comfortable because physical outlook of the bank is worth pity and so
congested. To eliminate this problem they can take the following steps.
The bank should purchase land for the construction of their office, where they
can build building according to the their requirements and modern standards.
The land is available not very far from their existing office. They can have
enough land as per their requirements. The estimated cost is Rs3 lacks for the
area of 5 Marla.
After purchasing the land they can hire the services of a construction
consultant to design building according to their requirements. To have
information about their requirements they need to conduct a proper research.
The data for the research should be collected not only from the employees of
the bank but also from the customers of the bank. The employees should be
asked what sort of working conditions they would like to have which they
think would facilitate their function. And the customer should be asked about
their expectations from the bank. Based on the facts obtained the consultants
should be asked to design building for them. Proper facts can be only obtained
through proper research which takes some time and was not possible for me to
conduct it in the short internship time but still what I found while being there I
will point out points as follows.
Glass covered cabins should be made for each employee, and it should be
designed in such a way that customers can access them in a convenient way.
This all will cost them not more than RS 12 lacks, and as MCB is a financial
institution having enough funds available can afford this project, which is
going to benefit them in the long run.

5.2.2 Relationship Between the Employees

Relations between the employees are not satisfied. They are just the staff
members and treat one another formally. They don’t have any relation of
as such friendship, which I think, is essential for the daily operations of
any organization.
To solve this problem the bank chief manager can play a vital role. Only
what he needs to do to arrange get together parties amongst them on
regular bases not only in the free timings of the bank but also outside the
bank which will provide them an opportunity to sit with one another and
discuss the problems of one another , by this they will come close to one
another and hence become friends.
In bank timings they are so busy in their bank activities that they don’t
find even a single minute to sit with one another and relax, even some
time they are so exhausted that they don’t want to talk to one another
and a kind of cold war stars between them and instead of giving
attention to their bank job they try to embarrass their colleagues which is
going to adversely affect the performance of the bank.
Hence it is very essential for the chief manager to improve their
relationship through regular get together parties and discouraging
informal groups between the employees.

5.2.3 Communication
Being the leading bank the MCB should give attention to the
improvement of communication amongst the employees. For this
purpose they can install their own little telephone exchange in their own
branch. This will cost them not more than Rs150, 000 for installation
and Rs10000 per month for maintenance and operation. Viewing the
financial position of the MCB it is too little amount for them. But this
well benefits them more through improved services.

5.2.4 Tension of Employees

What I have felt while being there with them, that the employees are
under unnecessary tension. They are always afraid that they might
commit some mistake and will be scolded by the chief manager if not
punished in terms of transfer or even suspended. In order to remove this
problem the chief manager should keep a friendly relations with the
employees of the bank and should be more democratic than
authoritative, this will require him to go their seats regularly and discuss
not only their routine problems but also their personal problems and
cooperate them in the best manner.