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Bank

for Life

MUSLIM COMMERCIAL BANK REPORT


INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
PROJECT

Submitted To:
Ms. Tahira Nisar
Submitted By:

Submitted
on:

Dawood Taslim Butt


Isma Ishfaq
Jannat Kamran
Rabiya Mohsin
Shamakh Gull
Sheikh M. Saleem

(roll no. 147)


(roll no. 134)
(roll no. 137)
(roll no. 135)
(roll no. 105)
(roll no. 154)

May 17, 2016.

INSTITUTE OF BUSINESS ADMINISTRATION,


UNIVERSITY OF THE PUNJAB

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17
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MUSLIM COMMERCIAL BANK REPORT

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT


PROJECT

Submitted To:
Ms. Tahira Nisar
Submitted By:

Submitted
on:

Dawood Taslim Butt


Isma Ishfaq
Jannat Kamran
Rabiya Mohsin
Shamakh Gull
Sheikh M. Saleem

(roll no. 147)


(roll no. 134)
(roll no. 137)
(roll no. 135)
(roll no. 105)
(roll no. 154)

May 17, 2016.

INSTITUTE OF BUSINESS ADMINISTRATION,


UNIVERSITY OF THE PUNJAB

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17
16.5
17
16.5
16.5

Dedicatio
n
We dedicate this report to our
Parents, Teachers, Friends and MCB
Bank staff because of their
encouragement and guidance we
have been able to complete this
report
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Acknowle
dg
m
en
t
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I am really thankful to Allah Almighty for his blessings.


Especial thank to Miss Tahira Nisar to give us this opportunity to
explore the world and have a practical experience.

Pen can do what


the sword cannot
I am thankful to Mian Atif Ijaz for his nice co-operation and
proper guidance throughout our visit.

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Abstract
Summary
This report reveals the Human Resource Management
scenario of one of the main third rank Banks of Pakistan that is
MCB. The report primitively gives an introduction to MCB by
discussing its vision, mission and objectives. Further it aims to tell
how actually the human resource of MCB is managed and
sustained. A brief background of human resource department of
the bank is given.
Then the report proceeds with describing the major functions
of the Human resource department. It also discusses all the
elements of these major functions in detail like job analysis, job
advertisement, rewards and incentives etc. Lastly how MCB
implements certain laws relating to human resource like equal
employment opportunity.
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Executive
Summary
This report is about our visit in MCB Bank Limited. The bank
tries to control its costs and increases its efficiency and
productivity.
This report covers many important aspects which are
basically related with the Human Resource (HR) department.
During our visit, we learned about different functions, roles and
responsibilities performed by HR as a whole. We also learned
banks coordination with their employees and other branches. We
also knew about record keeping and documentation requirements
for many kinds of activities and different sort of processes,
especially the requirements of HR documentation for different sort
of activities. This report contain all the information regarding MCB
HR planning and how its done. MCB recruit its employees through
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advertisement and then select the best among applicants after


testing and taking interviews. After hiring proper training is given
to employee and the employee is constantly evaluated through
performance appraisal.
MCB also give financial and non-financial compensations to
its employee on the basis of performance appraisal evaluation.
The bank is trying its best to take health and safety precautions.
Some of the recommendations include for improving their banking
system so they can get huge success in the field of banks.

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Table of Contents
Dedication
Acknowledgment
Abstract Summary
Executive Summary
Introduction:
Vision statement
Mission statement
Core-values
Human Resource Department:
Origin and History:
Human Resource Hierarchy:
... 4
Duties, Roles and Responsibilities:
Functions:6
Organization career management:7
HR Planning:7
Qualitative Needs:8
Quantitative Needs:8
Job Analysis:9
Job Advertisement:9
Recruitment and Selection:10
Sourcing the qualified human resource:11
Review candidates and develop short list:1
Testing:1
Interviewing:2
Hiring:
Orientation:3

Training:3

On-the-job Training:

Off-the-job Training:
Apprenticeship Training:

Effective lectures:

Performance Appraisals:
Employee Compensation:
Rewards and Incentives:
Employee Safety and Health:
National level:

Corporate Social responsibility

Bank for life

Investing in people

Education for all

Human rights

Sports

Welfare Scheme

Occupational safety and health:


Precautions for safety and Health:
Equal Employment Opportunity and Bona Fide Occupational
Qualification:
Bona Fide Occupational Qualification:
19
Conclusion:19
Recommendations:0

Introduction:
Muslim Commercial Bank limited is one of the main banks in
Pakistan, eminent for giving quality keeping money administrations,
innovative improvement and expert administration. Today, the Bank is
reputed as a sound financial institution with the highest market
capitalization 21.4% (as at 31st December, 2014). MCB Bank Limited is
one of only a handful couple of foundations in Pakistan that is
perceived and exchanged the worldwide business sector.
Today MCB Bank offers wide range of trade products assisting to
your business needs in affordable & appropriate ways. These products
are offered through a wide network of branches. MCB is in its more
than 50 years of operation. It has a system of more than 1,000
branches everywhere throughout the nation with business foundations
in Sri Lanka and Bahrain. MCB has an edge over other neighborhood
banks, as it was the initially privatized bank. The State Bank of
Pakistan has limited the quantity of branches that can be opened by
foreign banks, favorable position that MCB underwrites in view of its
broad branch system. The Bank gives 24 hour saving money
accommodation with the biggest ATM system in Pakistan covering 27
urban communities with more than 151 ATM areas.
Vision statement of MCB is:
Every day, we will help make something happen
Mission statement of MCB is:
We are a team of committed professionals, providing
innovative and efficient financial solutions to create and
nurture long-term relationships with our customers. In doing
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so, we ensure that our shareholders can invest with


confidence in us.

Core-values of MCB are:

Integrity
Customer care
Team work
Innovation
Knowledge
Excellence

Human Resource Department:


Human resource management is in charge of the human resource
measurement of the association. It is in charge of hiring able
individuals, preparing them to perform at high exertion levels, and
giving system to guarantee that these workers keep up their beneficial
connection with the association.
In the MCB since individuals are the way to its prosperity, the
Human Resource Department (HRD) champions the significance of the
individual while thinking deliberately. HR encourages the formation of a
situation in which individuals have the way to continually advance in
making progress toward persistent change for the advantage of all
partners.
Human resource management department office works for the
advancement of the representatives. It improves their abilities,
preparing

administration,

administration

aptitudes, administration

advantages, compensation, staff credits are fundamental elements of


this division.
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Origin and History:


Human Resource Department of MCB is a highly organized and
well established organization root backs to the era of Indo-Pak. The
department was created in 1947 in order to manage and coordinate
the issues, problems, and all aspects regarding human resources.
When conflicts and problems of employees were not being managed, it
was the time when organization were moving from the concept and
theory of personnel management to HR management. MCB also found
it the need of time to manage its biggest asset The employees
efficiently and effectively to meet organizational goals. The Human
Resource department aims to prove itself very promising for enhancing
and retaining its employee talent. Human Resource department lead
MCB to the new heights of success and fame by implementing the
function of recruitment, selection, training, appraisal in the most
optimum way. MCB currently has well established and structured
system of Human Resource department which are continuous dealing
with crucial matter on regular basis.

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Human Resource
Hierarchy
Group
Head

Unit Head

Divisional
head

Unit
Heads

No of

Designati
Employee
ons
s

Group
Head

Unit Head

Divisional
head

Unit Heads

10

HR
managers

10

Senior
Associates

20

HR
Associates

25

HR
managers

Senior
Associates

HR
Associates

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Duties, Roles and Responsibilities:


The duties and roles perform by the HR department of MCB are as
following:
The department tries to create a positive environment in the bank
by involving employees in productive activities.
Identifies hiring need, builds up the position depiction, Recruitment
Plan, authoritative outline and other enlistment related records.
Prepare the expected set of responsibilities and guarantees
legitimate strategies for survey and approval are met.
Posts recruitment on selected job boards
Monitors staff recruitment activity and guarantees governmental
policy

regarding

minorities

in

society

are

taken

inside

the

association
Acts as an independent advisor for employees in tough situations.
Facilitates different divisions in accomplishing the objectives or
standards as laid out in the HR arrangements of the association.
It is duty of HR department to make sure that all employees are
treated equally.
Motivate the employees. Encourages them on their efforts and
punish / advise them on their poor performance
HR department make sure that employees skills and abilities are
fully utilized and are flourishing. No one is static
Make sure all the facilities are provided to employees and proper
health and safety measures are taken.
A healthy, happy, motivating, positive environment is created which
is monitored at all time by HR department. Any conflict or problem
among the personnel of the bank is resolved in co-ordination with
administration by HR department.

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Functions:
HR perform many crucial functions like:

selection
and
recruitme
nt

training
and
developm
ent

performan
ce
appraisals

HR role in MCB

HR planning
and forcasting

organization
career
management

compensation
s

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In MCB various functions are performed by HR department which


are:

Organization career management


HR planning
Job analysis
Job advertisement
Recruitment and selection
Performance appraisals
Compensations, rewards and incentives
Health and safety measures

Organization career management:


In employment context carrier planning is a continuous process
assessing your present way of life, preferences/despises, interests,
abilities, dream work, present employment, carrier way and improving
redresses and enhancements to plan for future steps and to make your
carrier even brighter.
Carrier planning is imperative since it is firmly identified with an
individual's self-idea, personality and fulfillment with carrier and life. In
the new idea of carrier administration, workers and organizations are
accomplices in carrier management.

HR Planning:
MCB is consistent in conducting the human resource planning.
The human resource department clearly identifies the internal demand
of human resource and then matches the internal supply of human
resource with it. Excess demand is met by adding new employees to
the organization and decisions are also taken for the excess supply.
The human resource department of MCB broadly considers two factors
in Human Resource Planning, qualitative needs and quantitative needs.
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Qualitative Needs:
This includes that how MCB decides what skills, qualities,
abilities, talents and expertise their employees must have to make the
organization highly competitive in national and global market.

Quantitative Needs:
This includes MCB to take decisions in numbers about how many
employees are required to pursue their operation efficiently and
effectively.
MCB deals with the excess demand for human resource by
recruiting additional staff. Sometimes even extra tasks and duties are
also

allocated

to

the

existing

employees.

This

bring

different

advantages for MCB. Firstly they are able to utilize their existing
workforce in the most optimum way. Secondly new tasks provide
variety of work to the employees so they get motivated. Thirdly this
helps them in appraising the workers.
The excess, which is usually a very rare case for the organization,
is dealt by golden hand shake which is the wisest way.
MCB is also concerned about maintaining a skills inventory and
managing it on regular basis. The skills inventory is maintained
separately for each employee. All the details relating to the employee
e.g. productivity, training sessions, rewards, promotions etc. This
information

is

updated

with

time. This

helps

human resource

department in forecasting the qualitative and quantitative needs of the


organization. Forecasting of net requirements if human resource is also
done through other ways like taking opinions of the experts,
benchmarking (keeping a close eye on the competitors) etc.
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Then the human resource department devise appropriate plans to


meet the net requirements of the organizations. These plans are then
transferred to top management who further contemplate on the plans
and then approve or disapprove these.

Job Analysis:
Job analysis is a pivotal task that the human resource department
of the organization conducts. Job analysis are conducted by the human
resource department of MCB at different times like:
When a branch is newly set by the bank. So different jobs are then
analysed at that time.
Growth of branches also demanded an effective job analysis.
When employees are to be hired or recruited.
When the jobs of the existing employees to be redesigned to
provide them a wide variety of tasks.
Any job in MCB is analyzed on the bass of three factors duties and
tasks, code of conduct and specifications of the person. The tasks are
the major work that the worker has to perform. These vary from jobs to
jobs and designations to designations. Some occasional duties are also
assigned to very high posts so that some uncertain situations can be
managed effectively.
Code of conduct is also devised which is applicable to the entire
organization and all members at all levels are bound to follow this. This
is to maintain a disciplined and sophisticated environment. Then he
qualities, experience and qualifications of the concerned person are
also analyzed that must be present to do the job.

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Job Advertisement:
A vacancy cannot be filled until or unless capable, talented and
eligible people are not aware of it. MCB believes in consistently making
its existing and potential employees aware of job vacancy.
As this is internet oriented era, so MCB ensures its job
advertisement on internet as well on Rozee.pk etc. Beside this MCB
advertise in newspaper like The News and The Jang. Costing of
advertisement are kept confidential and are not told to people outside
the organization. Cost is very crucial for MCB which they would not let
revealed.
On Internet, Job advertisement are also placed on employee
portal so that current employees can know about promotional
opportunities. It gathers a large pool of candidates to choose the best
for their organization. Jobs advertisements are followed by pool of
candidates, applying for job and MCB filtering the best of them by
conducting test.

Recruitment and Selection:


Recruitment and selection process is a standout amongst the
most crucial HR function, which has an extraordinary effect on the
income development and the net revenues of an organization. This
require careful planning from start to end. MCB, one of the finest bank
of Pakistan, has very defined and ordered procedure for recruiting and
selecting employees. As MCB believes that if hiring is done carefully
than the efficiency and effectiveness of the bank increases. The MCB
attracts the most qualified pool of candidate and selects the best

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among them. Recruitment and selection is done in different steps that


are as follow:
Sourcing
Review applicants and develop short list
Testing
Interviewing
Hiring
Orientation
Training

Sourcing the qualified human resource:


The first step in recruitment and selection is to decide whether
the employee that will fill the particular job vacancy will be selected
inside or outside the organization. There are two sources of candidate
are:
Internal
External
MCB uses both sources to fill the job vacancy. Common strategies
MCB uses

are advertising, marketing

at selected

schools

and

organizations, managing employee referral programs or fill the vacancy


by promoting the existing employees. The advertisement as explained
above are done through newspaper, internet and different portals.
Than according to the job description and job specification the
potential candidate apply and thus, the pool of candidates is
generated.
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Review candidates and develop short list:


Once the position has been posted, candidates apply on the web.
Candidates Competitors finish an electronic application structure form.
In the wake of prescreening selection board short rundown the
applicants who are viewed as most appropriate for the employment at
introductory level on the premise of their resume/CVS. Once in a while
primarily interviews are led to figure out if the candidate's aptitudes,
capacities and job preferences coordinate the available job vacancy.
This interview helps MCB to screen out uninterested and unqualified
applicants. This whole process is done by HR department. Thus, the
applicants are screened and a short list of potential, interested
applicants is prepared which are further tested to recruit the best
among better.

Testing:
For this different testing like aptitude test and computer
proficiency test are conducted. In MCB if the applicant is fresh
graduate or have no working experience than a special test is
conducted for management training post (MTO). The merit list is
formulated and only the applicants who have fulfilled the requirement
of the particular job are than selected for interviewing.

Interviewing:
First of all the applicants who have passed the tests are than
considered for interview. In MCB the first short listed applicants are
interviewed by HR manager. The HR manager judges if the applicants
can perform the job efficiently. The applicants interests and abilities
are judged. His information regarding the organization and the job for
which he has applied is reviewed. The applicants expectations about
the salary and organization are asked. If the HR manager finds the
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applicant qualified for the job than the manager informs about the
organization expectation from the employee and the salary package
they can offer. After few days the background checks are done on the
applicants and references are checked. If all of this turns smooth than
the general manager of the organization invite the applicant to give
him a final decision. In this interview mostly the final salary packages
are discussed and if the applicant agrees on their terms than he is
hired. Mostly in MCB the GM decision is considered final but if the post
is higher the CEO may also conduct the interview. Proper structured
interviews are conducted by MCB.
The questions asked during the interview are:

Situational
Job related
Stress
Puzzle questions

Hiring:
After all the procedure the best candidates are selected and are
trained in the best possible way.

Orientation:
Soon after final choosing and beginning of practice procedure
orientation is directed for chose representatives. In orientation new
representatives are furnished with fundamental foundation data about
the bank.
Mostly in MCB members from different staff gather in a
conference room and the new recruits are introduced to each other. A
refreshment is given, rules and regulations are discussed. A very
friendly, professional and warm welcome is given.

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Training:
Immediately after hiring in MCB the employee is hired on
prohibition period and given pre-training. Length of pre-administrations
training period is of six months. In such a training operational practice
and many other banking related basic information courses are taught.
MCB uses different method of training according to the job for
which employee is hired. Methods are explained below:
On-the-job Training:
MCB provides on-the-job Training to its workers for effective
performance.
Off-the-job Training:
Employee training/preparing at a site far from the real workplace
is off-the-job Training. It frequently uses

addresses, contextual

analyses, pretending and recreation.


Effective lectures:
Class room training is done. Professionals deliver the lectures and
motivate employees. The employee is informed about the challenges it
face and how to handle those stress.

Performance Appraisals:
MCB besides setting standards, also make it sure that its
employees are meeting their standards for this they conduct appraisals
on annual basis to evaluate their employees and to keep their
standard. MCB basically make use of three methods to conduct these
appraisals which are:

MBO
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Forced-choice rating

Multi-rater assessment

These methods provide a criteria to MCB to know about the


performance of employees as well as let the employees know about
the level at which they are standing in comparison with other
employees who set standard for the others by their outstanding
performance.
MCB follows a policy that they announce at the start of each year
their increment for the employees who will fall at grade A, B and so on.
Obviously the performers who got grade A will have more increment
than others.
MCB regard this system as a motivation for employees.
MCB
performance appraisal system is based
on a combination
ofPakistans
'MBO'

Employee Compensation:

Compensation means is whatever the employee is receiving from


its organization in return of their tough services either it is
environment, salary, benefit etc. Compensation includes wages, salary,
incentives and benefits. Workers of MCB are qualified for the
compensation of the evaluation to which they are delegated. The
Executive Board will decide the different sizes of pay for the workers.
Aside from essential pay rates they are offered numerous different
benefits and incentives which are as follows:
MCB is giving allowances of utility to employees. . Utility
allowances can be small or large. The utilities for which a recompense
is given to employees incorporate power, normal gas, water, sewer and
waste accumulation. MCB is also giving medical allowances to
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employees as per needed by them. MCB is also giving overtime


allowances to employees for extra work. Education allowances is also
providing by MCB for the children of employees. Education allowance is
only for officers. They also provide house rent allowance and insurance
facility to employees like life insurance and disability insurance. MCB is
also giving bonuses as well as increment to their employees that is
additional compensation give to an employees above their normal
wage.

Rewards and Incentives:


MCB considers its workers as the Human Asset, the most critical
resource of the entire association.

So in order to hold this specific

advantage, MCBs administration completely energizes and rouses


their representatives and these rewards and incentives are not written
on realistic job preview. Different allowances, rewards, incentives and
increment etc. are honored to merit representatives and this also
encourages the alternate workers. MCB gives adequate prizes to
representatives as far as anyone is concerned, aptitudes, capacities
and their achievements.
The chief motive of rewards and incentives is to attract, retain
and motivate the employees. With the assistance of these prizes
representatives

have

expanded

resolve,

work

fulfillment

and

contribution in authoritative capacities. MCB provides two types of


rewards and incentives i.e. extrinsic and intrinsic in nature. Financial
incentives rewards laborers for execution and profitability through cash
whereas non-money related incentives reward worker execution
through advantages and opportunities. The list of monetary (financial)
rewards and incentives are given below:
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Life Insurance
Disability Insurance
Allowances of
medical
Retirement pension
Termination pay
Allowances of
conveyance
Different bonuses
Sharing Profit
The list of non-monetary (non-financial) rewards and incentives are
given below:
Complete Working
Atmosphere
Teaching And
Development
Job Safety
Pick And Drop
Opportunity
Sick Leave/ Holidays
Flexible Labor Planning
Flex Hours

Employee Safety and Health:


National level:
Corporate Social responsibility
MCB coordinate with different programs that are offers sports,
welfare programs, safety and health and environment protections.

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Bank for life


It is responsibility to enable every one of our partners with
corporate practices and valuable tasks that help them in seeking after
their Goals and accomplishments. The bank keeps up exceedingly
proficient

working

society

in

its

associations

that

incorporate

compulsory consistence towards the improvement of its partners at


each level.

Investing in people
Human rights
At MCB bank, our central goal is to guarantee the political,
instructive, social and financial nature of privileges of groups. They
have upheld different non-benefit activity that serve for privileges of
humankind.
Sports
The bank encouraged the ibex golf Club-Sargodha, Pakistan Club
and intuitive Club of Karachi mainland, Jashan e-Bahara celebration
and Ramazan sports affair are held by it.
Welfare Scheme
The bank has cooperated with different NGOs that have help in
the social and limit building issues of the group. The bank in a joint
effort with "Sundas Foundation" has sorted out a blood giving camp at
MCB house Lahore.

Occupational safety and health:


The health and security of staff are the foremost significance to
the bank. The bank guarantees the most extreme health principles are
met

at

all

business,

representatives

to

workplaces

advance

the

and

branches

security

of

and
their

urge

all

kindred

representatives and clients. An extraordinary "health and safety"


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approach has been created. This arrangement goes for giving a


protected and sound workplace the general population working and
going to the bank.

Precautions for safety and Health:


Following are some precautions MCB has taken to ensure health
and safety of its employees:
Fire extinguisher held at all the branches and offices in case of any
fire accident
Special trained Guards are hired to protect employees and
customers in case of theft.
Special allowance are given to the employees both the travelling
and the daily allowance
Medical and the insurance facility are also given to the employees

Equal

Employment

Opportunity

and Bona

Fide Occupational Qualification:


MCB bank is equivalent open door supplier. It has never
segregated on the premise of race, sex, age or incapacity. The bank
has enlisted an adequate number of unique individuals at different
branches everywhere throughout the Pakistan. At MCB extraordinary
individuals are not segregated on the premise of their impairments. At
whatever point new openings for work arrive the amount framework is
kept up for every last area of Pakistan. The sub share comprises of
various demographic components.
According to MCB they ensure that there is no discrimination
among gender. But they consider the factors or the limits which lie in
between these genders. There is an equality of post designation as
well as post promotion. They provide a healthy and happy atmosphere
to all of their employees and regard them as asset.

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As this is the age of competition and development, there is an


equal role involvement from both genders. Regarding this aspect, now
this is not the age that we neglect the potential powers of anyone on
basis of their age, gender or race. If anyone do so then he is keeping
himself or his organization one step behind from the track of progress
and development.
MCB- as a leading bank- remain aware from all these aspects of
modern age and take necessary steps according to it. Equal
employment opportunity can be regarded as the backbone of an
established, developed, and strong organization.
It has a blend of workforce with expanded Ages and experience
levels. In sexual orientations, females additionally have the quantity
yet because of the less female workforce in the business sector the
portion level is low for females. Be that as it may, now, as of late the
portion for females has been expanded to twofold. State Bank is a
developing

association

and

requires

representatives

qualified

impassive particular aptitudes like:

Informational Technology
Administration
Economics
Management
Finance
Sociology

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Bona Fide Occupational Qualification (BFOQ):


According to the branch manager, we visited, they make it sure
to apply BFOQ at all levels of post as they regard it the need according
to job. This law is ensured while hiring, promoting, and retaining the
employees.as the name indicates it is the potential required for a
person's occupation.so MCB also take initiatives as required with time
to maintain this at all levels.
As a whole we can say that MCB is keeping the pace of
development and prosperity with other organizations not at national
but also international level.in this way MCB is also putting efforts in
making this country to reach at success levels and new heights of
development.
MCB has bona fide occupational qualification on the different
roles of managers on the basis of qualification, experience and age
factor and particularly on the higher job posts which demands to put
right people at the right job with having the required skills and abilities.
They consider it necessary for the welfare and progress of the
organization in this contemporary world.

Conclusion:
It is plainly seen from this report MCB is gaining ground quickly.
The profit of MCB is increasing day by day. In this way, we have
reasoned that MCB has an extremely prosperous present and future,
which is the certification of riches amplification later on. With the
participation of all branch individuals, we have possessed the capacity
to learn and encounter numerous new things identified with the
keeping money segment and the banks workings. At long last, we

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inferred that MCB is a decent association for everybody for their


profession working.
Employees of MCB Shadman Branch work very hard and honestly.
Their atmosphere is very friendly. MCB provides rewards and incentives
to employees who perform well in the organization. Representatives
likewise demonstrate their faithfulness and duty to the association.
This branch of MCB is moderately extensive simply because of the
representative's endeavors and their diligent work. In the end we can
say the Muslim Commercial Bank is good banks of Pakistan.

Recommendations:
MCB is one of the leading banks of Pakistan having very efficient
HR department. But as we know every coin has two sides. There are
some

weakness

which

they

need

to

rectify.

Thus,

some

recommendations are as follows:


Performance appraisal method ought to be made straightforward by
utilizing mechanized framework which are associated though out
the branches on net, so overall correlation is simple and no bias is
given.
Feedback is really important. The employee should constantly be
evaluated and remarks should be given. The employee should also
be allowed to give his review freely.

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