Final Report The Bank of Khyber

The Bank of Khyber Employee Training and Development
CHAPTER ONE
INTRODUCTION TO THE REPORT
If you can change your mind, you can change the world.
Joey Reimer
1.1 INTRODUCTION TO THE TOPIC
The main focus of this study is Employee Training and Development at the Bank
of Khyber. The training and development function of an organization is often responsible
for helping employees to maximize their potential. Training and development helps in
building more efficient, effective and highly motivated team, which enhances the
companys image and gives it a competitive edge over other banks.
Employee training and developing helps to increase productivity, reduce

employee turnover, and increase efficiency resulting in financial gains and decrease need
for supervision. Employees frequently develop a greater sense of self-worth, dignity and
well being as they become more valuable to the firm and society.
1.2 BACKGROUND OF THE STUDY

It is a common practice at the universities that during their MBA program
students are given exposure to different practical fields related to their studies. At institute
of management sciences it is a pre-requisite for the students to carryout internship of two
months in organization of their choice for bridging the gap between theory and practice.
The two months internship is documented in written in form of a report, based on
theoretical and practical learning of the student. The undertaking concern of this report is
to study and analyze employee training and development at the Bank of Khyber.
The Bank of Khyber recognizes the need to enhance productivity, performance
and value of its employees through continued training and education. This is necessary
for the Bank in order to achieve and maintain a leading position in the industry through a
pool of its skilled and motivated employees. The Banks training and development
programs aim to improve and enhance employee performance through continued
learning. It also enhances their skills and knowledge of banking practices.
1
1.3 PURPOSE OF THE STUDY

The main purpose of this study is to analyze Employee Training and
Development at the Bank of Khyber. It is also an exercise of applying management
theory into practice and gives an opportunity of improving interpersonal skills by
working with the people, communicating with them, and getting relevant information
from them in order to write an analytical report on the systems and procedures followed
by the organization.
Employee training and development includes new employee orientation,

employee training, employee development and organization development. But this study
is mainly focused on new employee orientation, training and development. Training is an
integral part of Human Resource Development. It helps officers at the Bank to plan and
choose their career path.
An orientation program should familiarize the new member with the

organizations objectives, history, philosophy, procedures, and rules, communicate
relevant HRM policies such as work hours, pay procedures, overtime
requirements, and company benefits, review the specific duties and responsibilities
of the new members job, provide a tour to the organizations physical facilities, and
introduce the employee to his /her manager and coworkers and to the overall
culture of the organization.
Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their
jobs. Training is a learning experience in that it seeks a relatively permanent
change in an individual that will improve his/her ability to properly perform on the
job.
Employee development on the other hand, generally focuses on the future jobs in
the organization. As the employees job and career progresses, new skills and
abilities are required.
1.4 SCOPE OF THE STUDY

The scope of this report is Employee Training and Development at the BoK.
Personnel and Training Department is the focus of this study. New employee orientation
and employee training and development has been highlighted is this report.
2
Training needs usually arise when there is a gap between actual and desired
performance. These training needs are usually assessed through training needs surveys,
which range from simple questionnaires, where employees assess their own needs, to a
more elaborate and painstaking testing of skills.
Training is not an end in its self but a means to fix inadequacies identified in HR
exercises. Training needs also arise out of the organizations growth and restructuring
plans whereby employees have to be prepared/ developed to occupy positions and
execute plans that the organization has set for itself. Any attempt by the organization to
grow without first developing its Human Resource is bound to failure.
1.5 RESEARCH METHODOLOGY

Data can be obtained from primary or secondary sources. Majority of the data
presented in the report is collected through primary data sources. Primary data is
collected when there is insufficient secondary data available.
1.5.1 Primary Data

Primary Data refers to the data obtained for the first time and used specifically for
the particular problem or issue under study. Primary Data is collected directly
from people and organizations via questionnaires, interviews or surveys. Simply
primary data can be defined as the data collected personally through fieldwork.
Mainly questionnaires and face-to-face interviews have been conducted to collect

the data.
1.5.1.1 Face-to-face Interviews
Interviews conducted are of three types depending upon their nature of

conduction. These three types of interviews are:
1. Structured Interviews
When a pre-planned questionnaire is taken and an interview is conducted.
2. Semi Structured Interviews

When partial planning is done before commencement of an interview.
3
3. Unstructured Interviews
Similarly, unstructured interviews are conducted when questions are asked

randomly.
These interviews are taken mainly from the concerned personnel. Face to-face
interviews provide rich data, offer the opportunity to establish rapport with the
interviewees, and help to explore and understand complex issues. Many ideas
ordinarily difficult to articulate can also be brought to the surface and discussed
during such interviews.
1.5.1.2 Questionnaires
A questionnaire is a pre-formulated written set of questions to which respondents
record their answers. Questionnaires have been distributed among employees
apart from the interviews to know their response regarding certain issues of
employee training and development.
1.5.2 Secondary Data

Apart from questionnaires and conducting interviews, secondary data was used.
Secondary data refers to information gathered from sources that has already
existed. There are several sources of secondary data, including books, and
periodicals, government publications of economic indicators, the media, annual
reports of the companies, case studies and other archival records are sources of
secondary data which provide a lot of information for research and problem
solving.
The advantage of seeking secondary data sources is saving time and costs of
acquiring information. However, secondary data as the sole source of information
has the drawback of becoming obsolete, and not meeting the specific needs of the
particular situation or setting. Hence, it is important to refer to sources that offer
current and up-to-date information.
In secondary data three types of sources were employed. These are:
1. Books
Management and human resource management books were consulted for
definitions and for a little bit of elaboration of some of the topics.
4
2. Documents Published by the Bank of Khyber (BoK)

The documents like the Bank of Khyber annual report and employee service rules
were used.
3. The Bank of Khyber Official Website

www.bok.com.pk was used for various advancements going on within the bank.
1.6 LIMITATIONS OF THE STUDY

Employee training and development is difficult to analyze in a short span of two
months. Therefore the study has certain limitations as:
Limited time period of two months in which it was very difficult to cover all the
aspects of employee training and development.
Lack of information about training and development of the bank as well as no

information was available about the competitors; therefore it was not possible to
carry out comparative analysis.
1.7 SCHEME OF THE REPORT

The report is divided into four sections and then these sections are further sub-
divided into chapters. These four sections of the report are:
1.7.1 SECTION 1: INTRODUCTION TO THE REPORT

Section one includes some basic information regarding the process of preparation
of the report. It includes some basic information about the topic under discussion.
This section consists of one chapter, which has further been divided into seven
sub-headings. These sub headings are:
1. Introduction to the topic
2. Background of the Study.
3. Purpose of the Study.
4. Scope of the Study.
5. Research Methodology.
6. Limitations of the study.
7. Scheme of the Report.
5
1.7.2 SECTION 2: ORGANIZATIONAL REVIEW
This section describes the existing situation of the organization under review. The
information of this section has been collected through studying internship reports,
HRM books, and relevant documents of the bank and by interviewing people. This
section is divided into four chapters. Which is categorized as:
1. Organizational review.
2. Literature Review: New Employee Orientation.
3. Literature Review: Emplyee Training.
4. Literature Review: Employee Development.
5. New Employee Orientation at the Bank of Khyber.
6. Employee Training and Development at the Bank of Khyber.
1.7.3 SECTION 3: ANALYSIS

The analysis is based on the area of interest such as employee training and
development at BoK. This section of the report consists of:
1. Questionnaire Analysis.
2. Concluding Summary.
1.7.4 SECTION 4: FINDINGS AND RECOMMENDATIONS

This is the most important part of the report. This section of the report consists of:
1. Findings.
2. Recommendations.
3. Proposed Orientation Plan for the Bank of Khyber.
4. Proposed Employee Training and Development Plan for the Bank of Khyber.
6
CHAPTER TWO
ORGANIZATIONAL REVIEW
If we want to create a workplace that values idealism, human

connection, and real, in depth learning, we will have to create it ourselves.
Peter Block
2.1 DEFINITION OF BANK
Bank can be defined as:
A financial institution, which deals with money and credit, it accepts deposits
from individuals firm and companies at a lower rate of Interest and gives at higher rate
of interest to those who need them.
Banks can play an important role in the economic development of a country. If the
banking system of a country is unorganized and inefficient, it creates maladjustment and
impediments in the process of development.
2.2 HISTORICAL BACKGROUND OF THE BANK OF KHYBER

The Bank of Khyber was established through the Bank of Khyber Act passed by
the Provincial Assembly in June 1991. It is the only Bank in Pakistan having its head
office at Peshawar.
The BoK was established to:1
Meet demand of the business community to have a bank with its head office in the
Province.
Have accessibility of local businessmen to senior management of the bank for the
prompt credit decision making there by accelerating investment in N.W.F.P.
Have maximum utilization of funds generated in the Province for the economic
development of N.W.F.P.
2.2.1 Scheduled Bank Status
1
Mr. M. Mumtaz (AVP) HRD at Head Office
7
Up to 1994 the Bank was operating at provincial level as unscheduled bank under
the auspices of the provincial government. But in 1994 it got the status of the
scheduled bank and came under the regulatory framework of SBP, currently
operating at the national level. Due to this status the BoK is also engaged in
foreign trade business directly.
2.2.2 The Paid up Capital of the Bank
The initial paid up capital of the Bank was Rs. 153 million, which has now been
raised to Rs. 1,050 million.2
The point of distinction between BoK and other national banks is that it acts not
only as a commercial bank but also strives to be a development bank through its
emphasis on financial support, especially to small and medium sized businesses.
The Bank has been showing improvement in all the lines of its business, mainly
deposits advances & profits. The Bank has undertaken a complete
computerization of its branch operations and has also issued Traveler Cheques
and it has entered with American Express and Diners Club Pakistan limited for
issuance of their respective credit cards from BoK counters. BoK has established
correspondent banking relationship with several international banks and financial
institutions, and is competing hard with other banks for its share of business.
2.3 BRANCHES IN PAKISTAN

Currently the Bank has twenty-nine (29) branches with twenty three (23) in
NWFP, two at Karachi, and one each at Islamabad, Lahore, Quetta, and Muzzaffarabad. 3
The Bank plans to open new branches in the country with Islamic Banking System.
Starting from Peshawar where it plans to open one branch with Islamic Banking System
in the near future.
1.4 VISION STATEMENT OF BoK

A vision statement is a long-term goal that a company wants to achieve. A vision
statement should answer the basic question, What do we want to become? The vision
statement of the bank is as follows:4
2
Mr. Mumtaz (AVP) HRD of BoK
3
Personnel communication interview Mr. Tariq Hussain (Admin Officer) in Head office of BoK
4
The BoK Annual Report for the year 2003 p 3
8
Gradual conversion into ISLAMIC BANKING to develop and promote a

true Islamic economic system.
2.5 MISSION STATEMENT OF BoK

The mission statement is declaration of an organizations reason for being. It is
an enduring statement of purpose that distinguishes one organization from other similar
enterprises. It answers the pivotal question, What is our business? The mission
statement of the bank is as follows:5
To increase shareholders value and provide excellent service and innovative

products to customers through effective corporate governance, friendly work
environment, and contributing towards an equitable socioeconomic growth.
2.6 CORE VALUES OF BoK
The core values of BoK are as follows:6

Highest quality of service
Professionalism, Integrity and Team work
Innovation and utilization of latest technology
Corporate Social Responsibility
2.7 OBJECTIVES OF BoK

Under the Bank of Khyber act of 1991 of the provincial assembly of N.W.F.P. the
banks objectives are as follows7:
i. To mobilize private savings and public funds for diverting the same into
productive channels and ensure their availability.
ii. To promote industrial agricultural and socio -economic processes through

the active participation of private and public sector in the province.
iii. Help under-developed areas and create employment opportunities,

especially in the rural areas of the province. Further, to guide and assist the people
of N.W.F.P serving overseas to effectively and profitably invest their foreign
savings in the province as well as in other parts of Pakistan.
5
Annual report 2003 of BoK p 4.
6
Annual Report 2003 of BoK
7
Mr.Zahid Sahibzada (OG-1) in Head office of BoK
9
iv. Create a diversified and sound portfolio for utilization of idle funds and
their investment in the existing and new ventures especially in the pioneering of
high- tech agro-based export oriented and engineering projects to ensure maximum
returns.
v. Participate and seek the share of the province in the capital market of
Pakistan by way of subscription through locally pooled resources in the leading
stock exchanges of the country and eventually paving the way for establishing a
stock market in the province.
2.8 BOARD OF DIRECTORS

The banks ultimate governing body is the Board of Directors comprising of
eight members. The government of N.W.F.P is the major stakeholder of the bank
therefore the chairman and all the members of the board are nominated by it.
The Managing Director of the Bank represents the management in the Board and
acts as a member of the Board. There is a company secretary who calls meeting of the
board and maintains the minutes and proceeding of the Board of Directors. The current
members of BOD are as follows:8
8
Annual Report,The Bank of Khyber,2004.
10
BOARD OF DIRECTORS OF THE BANK OF KHYBER
Mr. Mir Laiq Shah
Chairman
Mr.Zia-ur-Rehman Mr. Muhammad Asif Mr. M. Shakir

Siddiqui
Director Director Director
Dr. Zubair Khan Mr. Syed M Abbas Mr. Turan

Caglayan
Director Director
Director
Dr. Munir Ahmad
Managing Director
11
2.9 MANPOWER POSITION

According to the manpower position report of 30th June, 2005 the bank had hired
a total of 551 employees, among which 362 are permanent employees of the bank while
the others i.e. 56 employees are serving the Bank on contractual and casual basis. The
contractual and casual staff includes 113 tea boys other supportive staff, and some of the
employees at officer cadre. Besides this staff there are free lancers attached with the Bank
that serves and guides the bank in different matters. These include Legal Advisors,
Contractors etc.
2.10 ORGANIZATIONAL STRUCTURE OF BoK

Organizational structure is defined as the set of elements that can be used to
configure an organization9. As technology, environment, size, lifecycle and strategy can
all influence an organizational design, it should come as no surprise that organizations
adopt many different kinds of design10. Most design, however, fall into one of the four
basic categories. Others are hybrids based on two or more of the basic forms11.
The organization structure of BoK is based on functional (U-Form) design. The

Functional Design is an arrangement based on functional approach to
departmentalization12. Functional approach to departmentalization means grouping
together those jobs, which involves similar activities13. This design has been termed the
U-Form (for unitary) by the noted economist Oliver E. Williamson 14. Under the U-Form
arrangement, the members and units in the organization are grouped into functional
departments such as production and marketing etc15.
2.11 ORGANIZATION HIERARCHY

At each position the duties, goals, functions, responsibility and authority are
clearly explained.
The channels that delegate these activities are called organization hierarchy. This
must be set in such a manner to best accomplish the organizational goals.
9
Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p. 292.
10
Stephen P. Robbins and Mary Coulter, Management, Ed. 5th, USA: Prentice Hall Inc, 1998, p. 329.
11
12
Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p333.
13
Ibid, p. 298.
14
Oliver E. Williamson, Markets and Hierarchies, New York: Free Press, 1975, p. 31.
15
12
The Bank of Khyber ultimate governing body is the board of directors while the
day-to-day affairs of the bank are managed by a Managing Director appointed by the
board of directors for a term of three years on contract with the consent of the
Government of N.W.F.P. Under the supervision of MD there are executive vice presidents
(EVPs) the senior most officials in the banks hierarchy each heading a bank unit. Next to
EVP there are senior vice presidents ( SVPs) and vice presidents (VPs) heading their
respective divisions and departments.
At the branch network of BoK there are branch managers and assistant branch
managers.
The nomenclature of various posts in the bank is as under:

1. Executive Vice President
2. Senior Vice President
3. Vice President
4. Assistant Vice President
5. Officer Grade-I
6. Officer Grade-II
7. Officer grade-III
8. Junior officer
9. Driver
13
2.12 ORGANIZATIONAL CHART
The organizational chart of the Bank of Khyber is as follows:
THE ORGANIZATIONAL CHART
14
2.13 DEPARTMENTALIZATION OF BoK

Departmentalization is the process of grouping jobs according to some logical
arrangement.16 The manner in which activities should be divided and formed into
specialized group usually referred to as departmentalization. 17 BoK has used the most
common base for departmentalization i.e. the functional approach to
departmentalization.18 Functional departmentalization means where grouping of jobs
takes place according the same, or similar activities. 19 The word function is used here to
mean organizational functions such as finance and production, rather than the basic
managerial functions such as planning or controlling.20
The head office of BoK is divided into the following departments

1. Credit Division
2. Finance Division
3. Islamic Banking Division
4. Internal Audit Division
5. Information Technology Division
6. Human Resource Division
7. Treasury and Investment Division
8. Banking operations Division
9. Marketing Division
10. RRMC & RD Division
2.13.1 Credit Department21

Credit division of BoK continuously tailored its policy frameworks in accordance
with the tough competition faced in the wake of reducing mark up rates scenario
and increase liquidity in the market. Introduction of new schemes like house,
consumer, car and micro financing will definitely improve and enhance the credit
portfolio. BoK is strengthening its grip on the target market for these schemes.
The credit monitoring cell, credit department, consumer finance department and
micro finance department comes under the umbrella of credit division.
16
Ricky W. Griffin, Management, Ed 5th, and USA: Houghton Mifflin Company, 1997, p298.
17
John Douglas and Joseph L. Massie, Managing, Ed. 2nd, New Jersey: Prentice Hall, 1973, p143
18
Personal Communication, interviewee, Zahid Sahibzada (OG-I) at Head office.
19
Ricky W. Griffin, Management, Ed 5th, USA: Houghton Mifflin Company, 1997, p298.
20
ibid.
21
Annual Report 2004 of BoK p 15
15
2.13.2 Finance Division22
The finance division is responsible for fiscal managing, financial control, financial
reporting and accounting function of the bank. This division ensures that the
accounting record and systems are maintained in accordance with the internal
policies, regulatory requirements and international accounting standards. It
establishes policies and procedures relating to the finance functions, monitors
returns on earning assets and report on various performance indicators including
assets/liabilities mismatch. The division directs control of the budgeting process in
accordance with the annual plans, policies, managements directives and
strategies. Internal auditors, tax authorities and SBP inspectors are the advisories
of this department.
2.13.3 Islamic Banking Division (IBD)
The division is working according to the guideline of Shariah supervisory board.
The objective of the IBD is to implement the decision of the board of directors to
gradually convert the whole bank into an Islamic bank with in three years under
the supervision of the Shariah supervisory board as per rules and regulations of
the SBP. IBD plans to convert twelve more bank branches in 2005 and the
remaining in 2006.
2.13.4 Internal Audit Division (IAD)

The internal audit division works independent of the management and reports to
audit committee of the board of directors (BOD). The audit committee comprises
of three non-executive directors and the head of IAD has freely access to the
chairman of the committee. The IAD consist of two departments namely audit &
inspection and compliance & implementation.
IAD provide regular training to its personnel in various field of banking to

enhance their skills and proficiency. It provides guidance and creates awareness
among the employees of the Bank regarding banks policies, procedures and
regulations and compliance thereof.
2.13.5 Information Technology Division (ITD)23

22
Ibid. p 16
23
Ibid. p. 19
16
Information technology department progressed in the last eight years and trying
its best to stay abreast in the field of fast developing technology. In order to
achieve its goals, the management has decided to start on-line banking in the very
near future, this will facilitate the customers of the BoK and they will be able to
transfer money between any two BoK branches and throughout the country.
2.13.6 Human Resource Division (HRD)24
HRD plays a vital role in carving the present and future image of an organization
by managing the employees in most beneficial and effective manner. The
functional arena of HRD consists of recruitment, training, performance appraisals,
planning and career development and above all grooming of staff to adhere to
office ethics and social norms. HRD provides on the job as well as off the job
training to the staff in diverse areas of banking and management. The training
relies on both internally arranged courses as well as external courses at institute of
repute in the country.
2.13.7 Treasury and Investment Division25

BoK is now gearing towards revamping its treasury, would soon assume a more
pro-active role in serving BoK customers, especially the corporate clients.
Upgrading the human resource skills is enhancing its capacity and the I.T
system .In future BoK will be able to manage corporate customer funds and
quote money market related rates for short-term corporate size loans.
2.13.8 Banking Operations Division26
The Banking operations Division is mainly responsible to manage the operations

i.e. work processing functions in the bank. The banking operations division
controls branch operations and international banking department. This division
propose operational polices, procedures and ensure strict compliance of the same
through liaison with internal audit division.
2.13.9 Marketing27
The marketing division of the bank is responsible for the formulation and
implementation of Marketing Strategy of the Banks products both on assets and
24
Ibid. p. 21
25
Ibid. p. 22
26
ibid p22.
27
Ibid p17
17
liabilities keeping in mind the business environment of the province. Accordingly

the division works to popularize the Banks deposit schemes and loan products
among the people with a view to improve business and over all image of the
Bank.
2.13.10 RRMC & RD28
The main responsibilities of the division include the recovery of all irregular as
well as bad debts of the bank. As a part of re-engineering of the division, a full-
fledged collection unit was established whose major assignment is to follow-up
the delayed accounts from the very 1st day of default in order to mitigate the risk
of further infection.
In order to bring effectiveness and cost control RRMC&RD coordinators closely

with credit, IT and MIS division.
28
ibid p18.
18
CHAPTER THREE
LITERATURE REVIEW
NEW-EMPLOYEE ORIENTATION
The development of a tree depends on where it is planted.

Edward Joyner
3.1 ORIENTATION DEFINITIONS
One definition of orientation is familiarization with and adaptation to a

situation or an environment.29
Weihrich Heinz and Koontz Harold defined orientation as Orientation involves

the introduction of new employees to the enterprise, its functions, tasks and people30.
In simple words it can be defined as new employee orientation covers the

activities involved in introducing a new employee to the organization and to his or her
work unit. An orientation program should familiarize the new member with the
organizations objectives, history, philosophy, procedures, and rules, communicate
relevant HRM policies such as work hours, pay procedures, overtime requirements, and
company benefits, review the specific duties and responsibilities of the new members job,
provide a tour to the organizations physical facilities, and introduce the employee to
his /her manager and coworkers and to the overall culture of the organization.31
In practice, orientation is often just a superficial indoctrination into company

philosophy, policies, and rules; sometimes it includes the presentation of an employee
handbook and a quick tour of the office or plant.
In one way, a displaced worker from the organization who is hired into another
environment is similar to a new college graduate. Upon starting a new job, both will face
a kind of cultural shock. As they are exposed for the first time to a new organizational
29
Wayne F. Cascio, Managing Human Resources,5th Edition, and USA :Irwin McGraw-Hill, 1998, p. 282
30
Weihrich Heinz and Koontz Harold, Management A Global Perspective, International Edition, USA,
p. 385.
31
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC, 1999,
p. 223
19
culture, both find that the new job is not quite what they imagined it to be. In fact,
coming to work at a new company is like visiting a foreign country. Either you are told
about the local customs, or else you learn them on your own by a process of trial and
error. An effective orientation program can help lessen the impact of this shock. But there
must be more, such as a period of socialization, or learning to function as a contributing
member of the corporate family.
The cost of hiring, training, and orienting a new person is far higher than we can
imagine. A new employees experiences during the initial period with an organization can
have a major impact on his or her career. A new hire stands on the boundary of the
organization certainly no longer an outsider but not yet embraced by those within.
There is great stress. The new hire wants to reduce this stress by becoming (acquainted)
with the interior as quickly as possible. Consequently, during this period an employee
is more receptive to cues from the organizational environment. Such cues to proper
behavior may come from a variety of sources, for example32:
Official literature of the organization.
Examples set by senior people.
Formal instructions given by senior people.
Examples given by peers.
Rewards and punishments that flow from the employees efforts.
Responses to the employees ideas.
Degree of challenge in the assignments the employee receives.
32
Wayne F.Cascio, Managing Human Resources,5th Edition, and USA :Irwin McGraw-Hill, 1998,p282
20
3.2 PROBLEMS FACED BY NEW EMPLOYEES

In short, new employees face three typical problems upon joining an
organization.33
3.2.1 Problems in Entering A Group

New employees ask themselves whether they will be
Acceptable to the other group members
Liked by the other group members
Safe that is, free from physical and psychological harm.
These issues must be resolved before they can feel comfortable and productive in
the new situation.
3.2.2 Naive Expectations
Organizations find it much easier to communicate factual information about pay

and benefits, vacations, and company policies than information about employee
norms (rules or guides to acceptable behavior), company attitudes, or what it
really takes to get ahead around here. Simple fairness suggests that employees
ought to be told about these intangibles. The bonus is that being up-front and
honest with job candidates produces positive results.
3.2.3 First-Job Environment
Does the new environment help or hinder new employee trying to climb aboard?
Can peers be counted on to socialize new employees to desired job standards?
How and why were the first job assignments chosen? Is it clear to new employees
what they can expect to get out of their first job assignments?
The first year with an organization is the critical period during which an employee
will or will not learn to become a high performer. The careful matching of
company and employee expectations during this period can result in positive job
attitudes and high standards, which then can be reinforced in new and more
demanding jobs.
33
Ibid. p. 171.
21
3.3 PLANNING AND PACKAGING AN ORIENTATION PROGRAM
New employees need specific information in three major areas:34
Company standards, expectations, norms, traditions, and policies.
Social behavior, such as approved conduct, the work climate, and getting to know
fellow workers and supervisors.
Technical aspects of the job
The most common reasons for firing new hires are absenteeism and failure to
adapt to the work environment. Fewer than 10 percent of employees are dismissed
because of difficulties in learning how to perform their jobs 35. These results suggest two
levels of orientation; company and departmental. There will be some matters of general
interest and importance to all new employees, regardless of department. The HR
department should have overall responsibility for program planning and follow-up
(subject to top-management review and approval), but the specific responsibilities of the
HR department and the immediate supervisor should be made very clear to avoid
duplication or omission of important information.
3.4 ORIENTATION FOLLOW-UP

The worst mistake a company can make is to ignore the new employee after
orientation. Almost as bad as an informal open-door policy: Come see me sometime if
you have any questions36. Many new employees are simply not assertive enough to seek
out the help of supervisor or HR representative more than likely, they fear looking
dumb. What is needed is formal and systematic orientation follow-up; for example, use
focus groups of randomly selected new employees to find out what they like and do not
like37. It is found that many of the topics covered during orientation need to be explained
briefly again, once the employee has had the opportunity to experience them firsthand.
This is natural and understandable in view of the blizzard of information that often is
communicated during orientation. In completing the orientation follow-up, review a
checklist of items covered with each new employee or small group of employees to
34
John M. Ivancevich. Peter Lorenzi, Steve J. Skinner and Philip B. Crosby, Management Quality and
Competitiveness, p. 309.
35
Ibid. p. 309.
36
Wayne F.Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 290.
37
Ibid. p. 291.
22
ensure that all items were in fact covered. Then make sure that the completed checklist is
signed by the supervisor, the HR representative, and the new employee.
3.5 EVALUATION OF THE ORIENTATION PROGRAM

At least once a year, review the orientation program to determine if it is meeting
its objectives and to identify future improvements38. To improve orientation, you need
candid, comprehensive feedback from everyone involved in the program. There are
several ways to provide this kind of feedback: through roundtable discussions with new
employees after their first year on the job, through in-depth interviews with randomly
selected employees and supervisors, and through questionnaires for mass coverage of all
recent hires39.
38
Werther William B, Davis Jr. Keith, Human Resources and Personnel Management, Fifth Edition, USA,
p.345.
39
Ibid. p. 345.
23
CHAPTER FOUR
LITERATURE REVIEW
EMPLOYEE TRAINING
There is nothing training cannot do. Nothing is above its reach. It can
turn bad morals to good; it can destroy bad principles and recreate good ones; it
can lift men to angelship.
Mark Twain
4.1 TRAINING DEFINITION
Training consists of planned programs designed to improve performance at the
individual, group and/or organizational levels. Improved performance, in turn, implies
that there have been measurable changes in knowledge, skills, attitudes, and/or social
behavior.40
The systematic development of the attitudes/knowledge/skill behavior patterns

required by an individual in order to perform adequately a given task or job.41
The acquisition of skills, concepts or attitudes that results in improved
performance in an on-the-job situation.42
Employee training is more present-day oriented; its focus is on individual

current jobs, enhancing those specific skills and abilities to immediately perform their
jobs. Training is a learning experience in that it seeks a relatively permanent change in
an individual that will improve the ability to perform on the job.43
In simple words training can be defined as learning that is provided in order to

improve performance on the present job. This includes training new personnel to perform
their job, introducing a new technology, or bringing an employee up to standards.
40
Wayne F.Cascio, Managing Human Resources, 5th Edition, and USA: Irwin McGraw-Hill, 1998, p. 260.
41
Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company LTD,
1999, p. 2.
42
Ibid. p. 2.
43
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC,
1999, p. 228.
24
There are four inputs to a system: people, material, technology, and time. Training
is mainly concerned with the meeting of two of these inputs i.e. people and technology.
That is, having people learn to master a given technology.
If you dont know where you are going, any road will take you there.44
Goal setting has a proven track record of success in improving employee

performance in a variety of settings and cultures. On average, goal setting leads to a ten
percent improvement in productivity, and it works best with tasks of low complexity.
Goal theory is founded on the premise that an individuals conscious goals or

intentions regulate her or his behavior. Once an individual accepts a goal, difficult but
attainable goals result in higher levels of performance than do easy goals or even a
generalized goal such as do your best.
4.2 IMPLICATIONS FOR MOTIVATING TRAINEES

Three important implications for motivating trainees are45:
1. Make the objectives of the training program clear at the outset.
2. Set goals that are challenging and difficult enough that the trainees can derive
personal satisfaction from achieving them, but not so difficult that they are
perceived as impossible to reach.
3. Supplement the ultimate goal of finishing the program with sub goals during
training, such as trainer evaluations, work-sample tests, and periodic quizzes. As
trainees clear each hurdle successfully, their confidence about attaining the
ultimate goal increases.
The training issues can be addressed from at least two perspectives i.e. macro
and micro level46. At the structural level, one can examine issues such as the aggregate
level of expenditures by the various providers of training (e.g., federal, state and local
governments, educational institutions, private-sector businesses), the degree of
cooperation among the providers, incentives (or lack of incentives) for providing training,
who gets training, and the economic impact of training. These are macro level concerns47.
44
Lewis Carroll in Alices Adventure in Wonderland, (1865).
45
Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p272.
46
Ibid p261.
47
Ibid p261.
25
At the micro level, one may choose to examine issues such as what types of
training seem to yield positive outcomes for organizations and trainees (i.e., what
work); how to identify if training is needed and, if so, what type of training best fits the
needs that have been identified; how to structure the delivery of training programs; and
how to evaluate the outcomes of training efforts.48
4.3 CHARACTERISTICS OF EFFECTIVE TRAINING PRACTICE
The four characteristics that distinguish companies with the most effective
training practices are:49
Top management is committed to training and development; training is part of the

corporate culture.
Training is tied to business strategy and objectives and is linked to bottom line
results.
A comprehensive, systematic approach to training exists; training and retraining

are done at all levels on an ongoing basis.
There is a commitment to invest the necessary resources and to provide sufficient

time and money for training.
48
Ibid p261.
49
Werther William B, Davis Jr. Keith, Human Resources and Personnel Management, Fifth Edition, USA,
p. 370.
26
4.4 TRAINING DESIGN PROCESS
A general system model of training design process is as follows50:
TRAINING DESIGN PROCESS
Conducting Needs Ensuring Creating a

Assessment Employees Learning
Readiness For Environment
Training
Developing an Ensuring Transfer of

Evaluation Plan Training
Monitor and Evaluate

Select Training the Program
Method
50
Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand &Company LTD,
1999, p. 25.
27
4.4.1 Training Need Assessment
The need assessment phase is the building block of a training program. The basis
for who must be trained, what must be trained, when training will occur, and
where the training will take place are accomplished in this phase. The product of
this phase is the foundation for all subsequent development activities.
A needs analysis provides you with a complete understanding of the shortcomings

of the system, while a task analysis looks strictly at the tasks performed on the
job51 .A need analysis looks not only at the tasks being performed but also at other
parts of the system that might yield clues at what might be done to improve it 52.
Depending upon organizational goals, an organization may perform one, both, or
a hybrid of two.
4.4.2 Levels of Analyzing Training Needs
There are three levels of analysis for determining the needs that training can fulfill
these are:53
Organization analysis focuses on identifying where within the organization

training is needed.54
Task analysis attempts to identify the content of training what an employee must
do in order to perform competently.55
Person analysis determines how well each employee is performing the tasks that
make up his or her job.56
51
Raymond A Noe, Employee Training And development, 2nd Edition, USA., p. 24.
52
Ibid. p. 24.
53
Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, p269.
54
Ibid. p. 260.
55
Ibid. p. 260.
56
Ibid. p. 260.
28
THE NEEDS ANALYSIS PROCESS
Person Analysis
Person
Characteristics
Input
Output
Consequences
Feedback
Organizational Analysis
Strategic Direction
Support of Managers & Peers for
Training Do We Want To Devote Time and
Training Resources Money for Training?
Task Analysis or Develop a

Competency Model
Work Activity (Task)
KSAs
Working Conditions
29
Training needs might surface in any one of these three broad areas. At a general
level, it is important to analyze training needs against the organizational
objectives and strategies. Unless the organization can do this, it may waste time
and money on training programs that do not advance the cause of the
organization.57
It is also essential to analyze the organizations external environment and

internal climate. Trends in the strategic priorities of a business, judicial,
decisions, civil rights laws, union activity, productivity, accidents, turnover,
absenteeism, and on-the-job employee behavior will provide relevant information
at this level. In short, the first step is to relate training needs to the achievement of
organizational goals.
Task analysis requires a careful examination of the work to be performed after

training. It involves:
A systematic collection of information that describes how work is to be done, so

that standards of performance for that work can be determined.
Descriptions of how tasks are to be performed to meet the standards.
The competencies necessary for effective task performance. Job analysis,

performance appraisals, interviews (with jobholders, supervisors, and higher
management), and analysis of operating problems (quality control, downtime
reports, and customer complaints) all provide important inputs to the analysis of
training needs.
Finally, there is person analysis. At this level, training needs may be defined in
terms of the following general idea; the difference between desired performance
and actual performance is the individuals training needs. Performance standards,
identified in the task analysis phase, constitute desired performance. Individual
performance data; diagnostic ratings of employees by their supervisors, peers, or
customers; records of performance kept by workers in diary from; attitude surveys;
interviews; or tests (job knowledge, work-sample, or situational) can provide
information on actual performance against which each employee can be compared
57
Ibid. p. 260.
30
with regard to desired performance standards. Training may fill the gap between
actual and desired performance.
4.4.3 Transfer of Training

Transfer of training refers to trainees effectively and continually applying what
they learned in training on their jobs. The work environment plays an important
role in ensuring that transfer of training occurs. Transfer of training is also
influenced by trainee characteristics and training design.
4.4.3.1 Characteristics of Transfer of Training
The factors that support the positive transfer of training are as follows:
1. Supervisors and Co-Workers Support
Supervisors and co-workers encourage and set goals for trainees to use new skills
and behaviors acquired in training.
2. Task Cues
Characteristics of a trainees job promptly remind him to use new skills and
behaviors acquired in training.
3. Feedback Consequences
Supervisors support the application of new skills and behaviors acquired in

training.
4. Lack of Punishment
Trainees are not openly discouraged from using new skills and behaviors acquired
in training.
5. Extrinsic Reinforcement Consequences

Trainees receive extrinsic rewards for using new skills and behaviors acquired in
training.
6. Intrinsic Reinforcement Consequences

Trainees receive intrinsic rewards for using new skills and behaviors acquired in
training.
31
4.4.3.2 Obstacles that Hinders Transfer of Training
Few obstacles in the environment that inhibit the transfer of training are as
follows:
1. Work Conditions
Trainee has difficulty using new knowledge, skills, or behavior because of

the following factors present in the work environment:
Time pressures
Inadequate equipment
Few opportunities to use skills
Inadequate budget
2. Lack of Peer Support

Peers do not support and discourage use of new knowledge and skills on the job.
They are unwilling to provide feedback and perceive training as a waste of time.
3. Lack of Management Support
Managers do not reinforce training or provide opportunities to use new

knowledge, skills, or behavior. They usually
Do not accept ideas or suggestions that are learned in training
Do not discuss training opportunities
Oppose use of skills learned in training
Communicate that training is a waste of time
Unwilling to provide feedback and reinforcement for trainees to use training

content.
4.4.4 Training Methods

New training methods appear with passage of time. While some are well founded
in learning theory or models of behavior change (e.g., behavior modeling), others
result more from technological than theoretical developments (e.g., videotapes,
32
computer-based business games). Training methods can be classified in three

ways; information presentation, simulation methods, and on-the-job training.58
4.4.4.1 Information Presentation Techniques
Information presentation techniques come under off-the-job training method and

it includes lectures, conferences, correspondence courses, videos, reading lists,
closed circuit TV, behavior modeling and systematic observation, programmed
instruction, computer-assisted instruction, sensitivity training, and long-rang
programs of organizational improvement.
4.4.4.2 Simulation Methods

Simulation methods are another type of off-the-job training method and it consists
of the case method, role playing, programmed group exercises, the in-basket
technique, and business games.
4.4.4.3 On-The-Job Training Methods
The most widely used training methods take place on the job. The popularity of
these methods can be attributed to their simplicity and the impression that they are
less costly to operate. On-the-job training places the employees in the actual work
situations and makes them appear to be immediately productive. 59 It is learning by
doing. For jobs that are difficult to simulate or can be learned quickly by watching
and doing, on the- job training makes sense. 60 On-the-job training methods
include orientation training, apprenticeship, near-the-job training (using identical
equipment but away from the job itself), job rotation, committee assignments (or
junior executive boards), understudy assignments, on-the-job coaching, and
performance appraisal.61
To choose the training method (or combination of methods) that best fits a given
situation, first define carefully what the trainer wish to teach. That is the purpose
of the needs assessment phase. Only then the trainer should choose a method that
best fits these requirements. To be useful, the method should meet the minimal
58
Ibid. p. 278.
59
Decenzo/Robbins, Human Resource Management, 6TH Edition, USA: John Wiley & Sons INC,
1999, p. 230.
60
Ibid. p. 230.
61
Wayne.F.Cascio, Managing Human Resources, 5TH Edition, USA:Irwin McGraw-Hills, 1998,p278.
33
conditions needed for effective learning to take place; that is, the training method
should.62
Motivate the trainee to improve his or her performance.
Clearly illustrate desired skills.
Allow the trainee to participate actively.
Provide an opportunity to practice.
Provide timely feedback on the trainees performance.
Provide some means for reinforcement while the trainee learns.
Be structured from simple to complex tasks.
Be adaptable to specific problems.
Encourage positive transfer from the training to the job.
4.4.5 Evaluating Training Programs

To evaluate training, you must systematically document the outcomes of training
in terms of how trainees actually behave back on their jobs and the relevance of
that behavior to the objectives of the organization63.
62
Ibid p279.
63
Ibid p 279.
34
4.4.5.1 The Four Levels of Training Evaluation

Perhaps the best known training methodology is Kirkpatricks Four Level
Evaluation Model64 i.e. reaction, learning, performance, and impact. The
chart below shows how the evaluation process fits together:
The first three-levels of Kirkpatricks evaluation -- Reaction, Learning, and Performance

are largely soft measurements, however decision-makers who approve such training
programs, prefer results (returns or impacts). This does not mean that the first three are
useless; indeed, their use is in tracking problems within the learning package:
64
http:/www.nwlink.com/~donclark/hrd/sat6.html#one.
35
Reaction level describes how relevant the training is to the work the learners perform
(it measures how well the training requirement analysis processes worked).
Learning level defines the degree of relevance that the training package worked to
transfer of knowledge, skills and attitudes from the training material to the learners (it
measures how well the design and development processes worked).
Performance level consists of the degree that the learning can actually be applied to
the learners job (it measures how well the performance analysis process worked).
Impact informs you of the return the organization receives from the training.
Decision-makers prefer this harder result, although not necessarily in dollars and
cents.
Information for improving the learning package is provided by the first three levels
while the fourth-level gives you impacts. A hard result is generally given in dollars
and cents, while soft results are more informational in nature, but instead of
evaluating how well the training worked, it evaluates the impact that training has
upon the organization. There are exceptions. For example, if the organizational vision
is to provide learning opportunities (perhaps to increase retention), then a level-two or
level-three evaluation could be used to provide a soft return.
36
CHAPTER FIVE
LITERATURE REVIEW
EMPLOYEE DEVELOPMENT
People are definitely a companys greatest asset. It doesnt make any

difference whether the product is cars or cosmetics. A company is only as good as the
people it keeps.
Mary Kay Ash
5.1 CONCEPT
Employee development, by design is more future oriented and more concerned
with education than employee job-specific training. By education we mean that employee
development activities to instill sound reasoning process to ones ability to understand and
interpret knowledge rather then imparting a body of facts or teaching a specific set of
motor skills. Development therefore, focuses more on the employee personal growth.
Successful employees prepared for positions of greater responsibility have analytical,
human, conceptual and specialized skills. It is important to consider one critical
component of employee development: all employees, regardless of level, can be
developed65. Although it is critical for individuals to be trained in specific skills related to
managing-like planning, organizing, leading, controlling and decision-making.
5.2 EMPLOYEE DEVELOPMENT METHODS

Some development of individual abilities can take place on the job. Job rotation,
assistant-to positions, &committee assignments are three popular on the job techniques
while lecture courses and seminars, simulation exercises; and outdoors training are three
off-the jobs methods.
65
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons INC, 1999,
p. 232.
37
5.2.1 On-The-Job Techniques
5.2.1.1 Job Rotation
Job rotation involves moving employees to various positions in the organization

in an effort to expand their skills, knowledge, and abilities. Job rotation can be
either horizontal or vertical rotation66. It turns a specialist into a generalist. In
addition to increasing the individuals experience and allowing him or her to
absorb new information, it can reduce boredom and stimulate the development of
new ideas.67 It can also provide opportunities for a more comprehensive and
reliable evaluation of the employee by his or her supervisor.
5.2.1.2 Assistant-To Positions

Employees with demonstrated potential are some times given the opportunities to
work under a seasoned and successful manager, often in different areas of the
organizations. Working as staff assistants or, in some cases, serving on special
boards, these individual perform many duties under the watchful eye of a
supportive coach and are groomed for assuming the duties of the next higher
level.68
5.2.1.3 Committee Assignment

Committee assignment can provide opportunities for employee to share in
decision making, to learn by watching others, and to investigate specific
organizational problems.69 When committee is of temporary nature, they often
take on task-force activities designed to solve a particular problem, certain
alternative solutions, and make a recommendation for implementing a solution.
These temporary assignments can be both interesting and rewarding to the
employees growth.
66
Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 288.
67
Ibid. p. 289.
68
Ibid. p. 437.
69
Ibid. p. 437.
38
5.2.2 Off-The-Job Training Techniques

5.2.2.1 Lecture Courses and Seminars
Traditional forms of instructions revolve around formal lecture courses and
seminars.70
Using a digitized computer technology, a facilitator can be in one location giving

a lecture, while simultaneously transmitted over fiber optic cables, in real time to
several other locations. The most widely used simulation exercises include case
studies, decision games, and role-plays71.
These cases represent attempts to describe, as accurately as possible, real

problems that managers have to face. Trainees study the cases to determine
problems, analyze causes, develop alternate solutions, select what they believe to
be the best solution, and implement it. Simulated decision games and role playing
exercises put individuals in the role of acting out supervisory problems.
Simulation frequently played on a computer programmed, provide opportunities
for individuals to make decisions and witness the implications of their decisions
on other segments of organization.
5.2.2.2 Outdoors Training

Some times refer to as wilderness or survival training; the primary focus of such
training is to teach trainees the importance of working together; getting as a team.
Outdoor training typically involves some major emotional and physical challenge.
This could be white water rafting, mountain climbing, paint-ball games, or
surviving a week in the jungle 72. The purpose of such training is to see how
employees react to the difficulties that nature presents to them. The reality is that
todays business environment does not permit employees to stand alone. This
has reinforced the importance of working closely with one another, building
trusting relationships, and succeeding as a member of a group73.
70
Wayne F.Cascio, Managing Human Resource, 5th Edition, USA:Irwin McGraw-Hill, 1998, p290.
71
Ibid. p. 290.
72
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley & Sons INC, 1999,
P. 234.
73
Ibid. p. 234.
39
CHAPTER SIX
EMPLOYEE ORIENTATION
AT THE BANK OF KHYBER
You cant force commitment, what you can do... You nudge a little here,
inspire a little there, and provide a role model. Your primary influence is the
environment you create.
Peter Senge
6.1 ORIENTATION DEFINITION
Orientation involves the introduction of new employees to the enterprise, its

functions, tasks and people.74
6.2 OBJECTIVES
Increase and improve productivity
Reduce the turnover rate
Reduce the time for learning new tasks
Foster uniform understanding among employees about the Bank
6.3 METHODOLOGY
The Bank of Khyber provides specific information to the new entrance in the
three major areas:
Material on company standards, expectations norms tradition and polices
Material on social behavior such as approved conduct, the work climate and
getting to know fellow workers and supervisor/controlling officer.
Material on the technical aspect of the job
The P& E Department in general and MIS in particular have the overall
responsibility for program planning and follow up (subject to top-management
review and approval).
74
Ibid. p. 385.
40
6.4 EMPLOYEE ORIENTATION KIT
Employee Orientation Kit in BoK includes:
The Banks Organization Chart
Map of the premises.
Key terms unique to the banking industry and or job
Copy of specific job goals and descriptions
List of the Banks holidays-familiarization with SERVICE RULES
List of on the job training opportunities
Sources of information
Detailed outline of emergency and accident-prevention procedures
Sample copy of each important publication
Telephone numbers and locations of key personnel and operations
41
CHAPTER SEVEN
EMPLOYEE TRAINING AND DEVELOPMENT

AT THE BANK OF KHYBER
Studies by the American Society for Training and Development show

that every $1 spent on training generates $3 in new economic activity.75
Robert Henkoff
7.1 TRAINING
The process of teaching new employees the basic skills they need to perform
their job.76
Training is the acquisition of technology, which permits employees to perform

their present job up to the standards. Training is also required to enable the Bank to offer
competitive services to its clients. Training is the process of developing qualities in
human resources that will enable them to be more productive.
7. 1.1 Objectives
Increase Banks productivity by:
Improving performance of employees.
Increasing adaptability and flexibility of each employee.
Increasing the level of commitment.
Reducing the employee turnover and absenteeism.
Provide vehicle for institutional growth through Manpower Development.
Aid Institutional strengthening by building professional competence.
Increase and improve productivity/efficiency, which leads to increased

profitability.
Foster uniformity in practice and procedure.
Improve standards of customer service.

75
Wrether William B,Davis Jr.Keith,Human Resources And Personnel Management,Fifth Edition p 281
76
Gary Dessler; Human Resource Management, Prentice-Hall of India Pvt Ltd, 2003, 187.
42
Develop a common corporate culture
Aid in the management of change made necessary due to change in technology,

law/regulations, economic and political environment and competitive pressures.
Reduce the Gap between standard/desired performance and actual performance.
7.1.2 Purpose
The major purpose of training plan is to remove performance deficiencies,

whether current or anticipated, that are the result of employees inability to
perform at the desired level, and be more productive. Further, BoKs training plan
is also very important because ever-changing financial/ banking sector demands
flexibility and adaptability in the employees.
7.1.3 Human Resource Training and Development Division

It is imperative for the Human Resource Development Division of the Bank not
only to provide educated and trained manpower so as to enable them to handle
their jobs more professionally and efficiently in all areas of the banking but also
to develop talent and add value to staff potential to enhance output, improve
profitability. With the growth of the bank of Khyber, the need for training both for
emerging new issues, as well as strengthening of basic competencies began to be
addressed.
7.1.3.1 Functions of Human Resource Division of the Bank of Khyber

The Human Resource Department of the Bank Of Khyber will perform the
following specific functions:
1. Assess training needs of the staff of the Head Office/ Divisions/ Departments/
Branches in consultation with the In Charge/Manager Concerned.
2. Draw a training plan where by every officer of the Bank specially at the level of
OG-1 and below should participate and have training in the core areas of The
Banking laws, procedures, advances, operations, foreign exchange, treasury, audit
and marketing.
3. Chalk out training schedule for the current year.
4. Arrange internal and external courses of the staff.
5. External courses to be attended at the institutes of repute via IBP, NIBAF, PIM,
NIPA, IPS, ICMAP, and British Council etc.
43
6. Internal courses are arranged at head office premises for the subjects where in a
large number f officers need to be trained.
7. Such internal courses are arranged through different institutes, mostly through the
IBP.
8. The training schedules of the IBP and other well established training institutes to
be circulated to all branches and departments soliciting their nominations for
relevant courses.
7.1.4 Phases of Training and Development

Training and development program of the Bank of Khyber is designed in three
phases:
1. Assessment Phases
2. Implementation phase
3. Evaluation phase
7.1.4.1 Assessment of Training Needs

BoK uses two methods to assess the training needs of the employees. First, the
head office of the bank receives invitation from different training institutes
regarding different courses, seminars, and workshops; where after these are
communicated to the concerned branches, departments and divisions for their
input. Accordingly relevant staff is nominated against the concerned courses.
These nominations are later on provided to the respective institutes.
Secondly, to assess the training & development needs of each employee, a

questionnaire is designed comprising of two parts77: Section-1 to be completed by
employees (basic information) and Section-2 by the controlling officer. Section 2
plays the major in determining the training needs of an employee. Compilation of
this section involved the following steps:
77
See Annexure-1
44
1. Development of Broad Competency Categories
Critical skills that employee at a given level or Job classification in the bank
needs to be more effective, e.g. General Banking, Advances, Foreign Exchange,
Management Skills, Computer Literacy, English Language Proficiency.
2. Development of Specific Competencies
Once broad category is selected the next step is to further define each and develop
a list of more specific competencies.
3. Development of a Measuring Scale

A scale ranging from 1 to 5: (1) being least training required and (5) being
training required to a large extent.
4. Development of open-ended questions

Two open-ended questions are designed to determine the employees growth;
career wise and profession wise).
7.1.4.2 Implementation
Successful implementation of training and development programs depend on
selecting the right program for the right people under the right conditions. The
first phase i.e. assessment identifies the right people and the right programs and
several other training and development considerations that help in making the
right conditions.
The following conditions are considered in order to increase the chances of the
program being effective:
1. Who participates in the (Employees identified by the controlling

program? officer)
2. Who teaches the program? (Panel of qualified bankers)
3. What media are used to teach? (Role-playing. Group participation
exercises & Demonstrations)
4. Where is the program to be (In-house and off-site; depending upon
conducted? the resources available)
The implementation phase involves the actual delivery of training. This requires
resolving issues such as determining course content, scheduling courses,
45
contracting/assigning instructors, choosing training methods, media and venue.

The following ideas are considered:
a. Curriculum Committee
A Curriculum Committee is set up which will be responsible for the approval of
course schedule and course content and serve as the advisory body for training.
b. Specialized Training
The employees enter specialized streams or career paths. They are then being
imparted specialized training in their relevant field to become specialist in that
field. Thus training program is tailored to provide the required specialist training.
c. Banking Diploma Exams

The Personnel Department offers some assistance with the DAIBP exams, at the
repeated requests of the employees.
It is planned, that an information packet will be prepared and distributed to all

interested. The packet will contain information on the content of the exam, books
and correspondence courses.
d. Teaching Methods
Teaching methods are changed from Classroom Lecture style to a more
participatory Workshop Approach. Here classroom training and OJT will be
carried out simultaneously.
e. Training Material
The training material used is relevant and is insured by the curriculum committee.
The training material address the skill base at the level of the participants and is
complied in a manner that can be used by any trainer at any location.
7.1.4.3 Evaluation
Once the training program is implemented, the concerned officer/ controlling
officer/ manager checks whether the training course has affected the performance
of that employee in that particular area.
An evaluation form evaluates any training program undertaken78. Evaluation

Techniques used are the feed back surveys of trainees, tests and results as
mirrored through customer comments, profitability, and decrease in audit
78
See Annexure-2
46
objections, external audits, and comments of the employees immediate

supervisor.79
7.1.5 Training Methods

The bank in order to increase the capabilities of the staff in present dynamic
environment employs two methods of training:
7.1.5.1 On The Job Training

It is a type of training in which an experienced employee adopts a new employee
to teach him or her how to perform job duties80
On-the-job training (OJT) means having a person learn a job by actually doing it.
On- the -job training is provided to every employee, from mailroom clerk to
companys president, when he or she joins a firm.
7.1.5.2 Off-The-Job Training Techniques
There are also many off-the-job techniques for training and developing managers.
Seminars
The bank offers traditional management development seminars and conferences. It
provides courses in areas ranging from accounting and controls to assertiveness
training, basic financial skills, information systems, project management,
purchasing management, and total quality management.
7.1.5.3 Academic Internships

The Bank also provides internship to new graduates. It is a sort of students
contract with a senior supervisor of the Bank to help him/her learn different, skills
and knowledge regarding banking system.
7.1.6 Training Institutions

The Banks training now relies on both internally and external arranged courses at
institutes of repute in the country. Whereas for subjects in which large number of
employees need to be trained, the Bank is conducting its internal courses in the
library cum conference room at the head office through IBP and other institutions.
The conference room has the capacity of 24 trainees. Training aids such as
79
Bank notes, BOK.
80
Daft, Richard L; Management, The Dryden Press, Harcourt Brace College Publishers, 1997
47
overhead and multimedia projectors are also available. The arrangement is

adequate for the present needs of the bank.
For specialized courses where the need is limited to few officers, the Bank relies
on the following institutes:
IBA (Institute O f Business Administration)
IBP (Institute Of Banking of Pakistan)
PIM (Pakistan Institute Of Management)
NIBAF (National Institute Of Banking And Finance)
NIPA (National Institute Of Public Administration)
Jaffar Brothers (Pvt.) Ltd
NBP (National Bank Of Pakistan)
MCB (Muslim Commercial Bank)
British Council.
The Bank is arranging an increasing number of courses in specific technical areas

such as Audit, Treasury and Foreign Exchange as per the requirements of these
departments.
The Bank is also trying to explore the possibility of obtaining affiliation with a
foreign institute of repute, such as Harvard Business School or Singapore Institute
of Technology.
7.1.7 Training Budget
The annual budget allocated for the training and development of employees of the
Bank is Rs.2 million. All costs of the trainees are borne by the Bank. The
materials provided to the trainees during a training session are free of cost.
48
7.2 EMPLOYEE DEVELOPMENT AT THE BANK OF KHYBER

7.2.1 Definition of Employee Development
Development represents those activities that prepare an employee for future
responsibilities.81
Development is training people to acquire new horizons, technologies, or

viewpoints. It enables leaders to guide their organizations onto new expectations
by being proactive rather than reactive. It enables workers to create better
products, faster services, and more competitive organizations. It is learning for
growth of the individual, but not related to a specific present or future job.
With the following objectives in mind, the Bank initiated the preparation of a
Human Resource Development policy and plan.
7.2.2 Human Resource Development Policy Features
The salient policy objectives of Human Resource Development Program are:
1. To develop skills to insure that every Officer at a minimum is capable and

qualified for his/her current position.
2. To continually develop skills in new and emergent Technologies/Issues such as

Computers, Leasing, SSC Financing and new financial products.
3. To offer an orientation course for new employees (General Banking).
a. To promote a common culture of the Bank of Khyber.
b. To familiarize the new entrants to the service rules of the BoK.
c. To ensure a basic level of understanding of General Banking.
4. To deepen the skill of experienced employees by offering Training made

necessary by:
a. New Regulations.
b. New Developments in Banking.
c. Technology adaptation/Innovations.
d. Refresh Traditional concepts in Banking.
81
William B Werther fr Keith Davis, Human Resource and Personnel Management, 5th Edition, Mc
GrawHill Inc; IntlEdition, 1996, glossary.
49
5. Continue policy of encouraging employees to attend outside courses, so as to

utilize expertise of outside resource persons and expose the employees to enable
them to meet and exchange views with staff from other Banks and organizations.
6. Encourage employees to acquire additional education and professional

certification (DAIBP).
7. Assess the Training/Education needs of employees and evaluate and guide them
on a career path.
7.2.3 Employee Developing Method
The Bank of Khyber besides arranging training sessions has started a sponsorship
MBA (Evening) program for employees of the bank since 1999. Selection is made
on the basis of merit among the eligible candidates.82
For eligibility an officer must have a minimum of three years service with the
bank and will have to sign a bond to serve the bank for five years after completion
of the degree.
Under this scheme the bank bears 80% of the fee besides paying convenience
allowance.
The bank encourages and assists employees to take Banking Diploma

Examinations and gave promotions and other rewards to the employees on
acquiring different stages of DAIBP according to IBP rules.
82
Employee Development Notes,BOK.
50
CHAPTER EIGHT
ANALYSIS
Read not to contradict and confute, nor to believe and take for granted...
but to weigh and consider.
Francis Bacon
Data collection methods are an integral part of research. There are several data
collection methods, each with its own advantages and disadvantages. Interviewing,
administering questionnaires, and observing people and phenomena are the main data
collection methods in research.
Questionnaires have been distributed among employees apart from the interviews
to know their response regarding certain issues of employee orientation, training and
development. A questionnaire is a pre-formulated written set of questions to which
respondents record their answers. A questionnaire is an efficient date collection
mechanism. Questionnaires were personally administered. Any doubt that the
respondents have on any question been clarified on the spot. The research topic was
introduced to the respondents and they were motivated to give their frank answers.
The questionnaires were distributed among a sample of twenty employees of the

whole population of three sixty-two employees. Sampling makes it easy to generalize the
responses to the whole population. In data analysis step, the data gathered was
statistically analyzed and interpreted to identify the potential or existing problems.
This section includes the graphical presentation of the data analyzed, the
interpretation of the data analyzed, personal comments of the researcher and a concluding
summary of the whole section.
51
1. Who conducts employee orientation?
Authorities Percentages
IBP 14%
Immediate Supervisor 30%
HRD 56%
Supervisors of Employee Orientation

HRD
56%
IBP
14%
Immediate
Supervisor
30%
Interpretation
The response of the employees at BoK shows that new employees are given
formal orientation, which is mostly conducted by the Human Resource Department and
immediate supervisors of the employees. IBP also provides orientation in cases where
more formal orientation is required. Such orientations are given during the first week of
joining the Bank and are carried out at the very site of the employee work place. Most of
the employees responded that they were given a lecture regarding the Banks background
and human resource polices. A new employees experiences during the initial period with
an organization can have a major impact on his or her career.
52
2. What type of material is given during orientation?
Material Percentages
Service Rules 61%
Org. History & Products 22%
Nothing 17%
Material given in New Employee Orientation
Nothing
17%
Org.
History& Service
Products rules
22% 61%
Interpretation
To make the new employee familiarize with and adapt to the new working
environment the employees are given material regarding the organizational history,
various products of the Bank and service rules. The employees responded that the
supervisors show their support by providing guidance and different material of the Bank.
53
3. Are you satisfied with the training need assessment (TNA) system of
the bank?
Options Percentages
Yes 78%
No 22%
Satisfaction Ratio Regarding Training Need

Assessment
No
22%
Yes
78%
Interpretation
Most of the employees are satisfied with the training need assessment system of
the Bank. About twenty two percent of the employees of the bank are not satisfied with
the TNA system because they are of the view that the Bank should adopt new methods
that can analyze their skills more accurately. The satisfied employees are happy from
their supervisors and their support in analyzing their needs.
54
4. Is going through different training programs voluntarily?
Options Percentages
Yes 50%
No 50%
Approach toward trainee selection
No Yes
50% 50%
Interpretation
The response of the employees show that they go through different training
programs voluntarily as well as selected by their supervisors. The Bank provides TA/DA,
good accommodation as well as leave with pay to the trainees. Some of the employees
responded that the Bank should also provide monetary rewards to the trainees to motivate
them to perform better. Moreover they argued that the training programs should be given
some weightage in the ACR of the trainee.
55
5. Does the bank bear all the costs of the trainee?
Options Percentages
Yes 100%
No 0%
Percentage of financial assisstance provided by the Bank
No
0%
Yes
100%
Interpretation
The Bank of Khyber bears all the costs of the trainees. Accommodation, TA/DA
and different material of the training are provided to the trainees free of cost.
This shows that the Bank of Khyber has a positive attitude towards the
development of its employees .To encourage the employees to undergo training programs
different incentives are provided to them.
56
6. Does the training program fulfill your training needs?
Options Percentages
Yes 78%
No 22%
Satisfaction level of training program
No
22%
Yes
78%
Interpretation
Majority of the employees at the Bank are satisfied with the training system of the
Bank. They responded that the training system fulfills all their needs and requirements.
The trainers were very competent and had full command over their respective subject.
Some of the dissatisfied employees complained that they had gone through irrelevant
trainings. The supervisors were not good enough to assess the training needs of their
employees and hence they were sent for trainings, which were not relevant to their job.
57
7. Is the trainer capable enough to run the training program?
Options Percentages
Yes 100%
No 0%
Competency of Trainer
No
0%
Yes
100%
Interpretation
The training programs are arranged by the Bank of Khyber to help employees
improve their skills, knowledge and attitude. For this purpose competent trainers are
hired to train the employees. The trainers are capable enough to handle all the problems
of the training session.
For specialized courses BoK relies on the competent trainers of IBA, IBP, PIM,
NIBAF and NIPA.The trainers are skilled enough to improve the performance on the
present job of the employees and to bring them up to standards.
58
8. Is there any practical aspect of training given to you?
Options Percentages
Yes 83%
No 17%
Practical Aspect of Training
No
17%
Yes
83%
Interpretation
Most of the employees are satisfied with the training system of the Bank. To learn
the practical aspect of their jobs the trainer trained them in a successful manner. For this
purpose the employees are given written material to practice. If the employee faces any
sort of problem in the training session then the Bank tries to solve the problem in
collaboration with the training institute. Very less percentage of the employees are not
satisfied with training system because they argued that there is no practical aspect of the
training. The dissatisfied employees added that only written materials are provided to the
trainees and no opportunity is provided to them to practice what they have learnt.
The trainers are required to teach employees the practical side of their jobs. They
should give them an opportunity to practice what they have learnt in the training session.
59
9. Does the training method encourage positive transfer of knowledge and

skills from the training to the job?
Options Percentages
Yes 100%
No 0%
Practicability of Transfer of Training
No
0%
Yes
100%
Interpretation
All of the respondents agreed that they effectively and continually apply at the
work place, things that they learn from training programs. The employees were of the
view that the trainings had a positive impact on their performance and improving their
skills. The trainers effectively evaluate every trainee by taking tests. These tests help the
trainees to know about their capabilities and their weaknesses.
The training programs of the Bank help the employees to improve their
performance on the present jobs. The work environment of the Bank ensures positive
transfer of knowledge to the job. Transfer of training is also influenced by trainee
characteristics and training design.
60
10. Is the change positively related to the achievement of organizational

goals?
Options Percentages
Yes 100%
No 0%
Interrelationship of Training and

Organizational Goals
No
0%
Yes
100%
Interpretation
The Bank of Khyber arranges different training sessions for its employees to
efficiently achieve the objectives of the organization. The response of the employees
shows that these trainings help them to contribute actively to the overall organizational
objectives.
This shows that the objectives of the training programs are parallel with the
Banks objectives.
61
11. What does the Bank do, if the employee fails to improve skills after training?
Post Failure Strategies Percentages

Further Training 22%
Chance For Improvement 22%
Nothing 56%
Post Failure Strategies by the Bank
Further training
22%
Nothing
56%
Chance for
improvemet
22%
Interpretation
In most of the cases if the employee fails to improve their skills, knowledge and
attitude after training the Bank over looks it. For some employees more training sessions
were arranged and they are given another opportunity to improve their skills and
knowledge.
62
12. Does the training have any impact on your performance appraisal?
Options Percentages
Yes 88%
No 12%
Impact of Training on Performance Appraisal

of Employee
No
12%
Yes
88%
Interpretation
The performance appraisals of the employees contain a section regarding the
training session being attended by the employees. Majority of the employees responded
that the training has positive impact on their performance appraisal and it also helps them
to increase their productivity. Some of the employees responses show that they wanted
the training programs to be given more weightage in the performance appraisal. This will
motivate the employees to attend the training sessions.
The training programs help the employees to develop their skills; knowledge and
attitude that help them advance in their career.
63
13. Is the board of directors supportive to the training system?
Options Percentages
Yes 100%
No 0%
Ratio of Supportiveness of BOD
No
0%
Yes
100%
Interpretation
The responses of the employees show that the Board of Directors of the Bank is
quiet supportive to the training system of the Bank. BOD shows its supportiveness in
terms of allocating two million rupees annually to the training programs. The upper
management always tries to arrange different training courses for the employees and also
appreciate the employees who under go these training programs.
BoKs top management is committed to employee training and development.

Training is considered as a part of the corporate culture of the Bank.
64
14. Do you think the budget and other resources allocated for the training
programs are enough?
Options Percentages
Yes 94%
No 6%
Aptness of Budget and Resources Allocated for

Training
No
6%
Yes
94%
Interpretation
Majority of the responses of the employees show that the budget and other
resources allocated for the employee training and development is enough. The annual
budget allocated for the training and development of employees of the Bank is Rs.2
million. All costs of the trainees are borne by the Bank. The materials provided to the
trainees during the training session are free of cost.
The Bank is arranging an increasing number of courses in specific technical areas

such as audit, treasury and foreign exchange as per the requirements of these
departments. The Bank is also trying to explore the possibility of obtaining affiliation
with a foreign institute of repute, such as Harvard Business School or Singapore Institute
of technology.
65
15. What improvements do you think are necessary to be made, in order to make
the training and development system effective and efficient?
Areas Percentages
Establishment of BoK Training Institute 61%
Job Related 22%
Training Methods 6%
TNA System 11%
Improvements in the Employee Training and

Development System
11%
6%
22%
61%
Establishment of BoK Training Institute Job related

Training Methods TNA System
Interpretation
The employees responded that the Bank should try to establish its own training
institute. This will save the costs of the Bank. Moreover more employees will be able to
get trained in its training institute. The employees recommended that they should be
provided training in their respective and relevant areas. The training methods should be
updated from classroom settings, seminars and workshops to on -the -job training. On-
the-job training methods are simple and less costly to operate. The training need
assessment system of the Bank is more subjective in nature and does not identify the
needs and requirements of the employees more objectively.
66
CONCLUDING SUMMARY
The response of the employees at BoK shows that new employees are given
formal orientation, which is mostly conducted by the Human Resource Department and
immediate supervisors of the employees. IBP also provide orientation in cases where
more formal orientation is required. Such orientations are given during the first week of
joining the Bank and are carried out at the very site of the employee work place. To make
the new employee familiarize with and adapt to the new working environment the
employees are given material regarding the organizational history, various products of the
Bank and service rules.
Most of the employees are satisfied with the training need assessment system of
the Bank. About twenty two percent of the employees of the bank are not satisfied with
the TNA system because they are of the view that the Bank should adopt new methods
that can analyze their skills more accurately. The response of the employees show that
they go through different training programs voluntarily as well as selected by their
supervisors. The Bank provides TA/DA, good accommodation as well as leave with pay
to the trainees. Some of the employees responded that the Bank should also provide
monetary rewards to the trainees to motivate them to perform better. Moreover they
argued that the training programs should be given some weightage in the ACR of the
trainee.
Majority of the employees at the Bank are satisfied with the training system of the
Bank. The trainers are very competent and have full command over the subject. The
trainers are capable enough to handle all the problems of the training session. Some of
the dissatisfied employees complained that they had gone through irrelevant trainings.
The supervisors were not good enough to assess the training needs of their employees and
hence they were sent for trainings, which were not relevant to their job. If the employee
faces any sort of problem in the training session then the Bank tries to solve the problem
in collaboration with the training institute. Very less percentage of the employees are not
satisfied with training system because they argued that there is no practical aspect of the
training. The employees were of the view that the trainings had a positive impact on their
performance and improving their skills. The trainers effectively evaluate every trainee by
taking tests. The training programs objectives are parallel with the Banks objectives. The
work environment of the Bank ensures positive transfer of knowledge from the training
67
to the job. In most of the cases if the employee fails to improve their skills, knowledge
and attitude after training the Bank over looks it.
Some of the employees responses show that they wanted the training programs to
be given more weightage in the performance appraisal. This will motivate the employees
to attend the training sessions. The responses of the employees show that the Board of
Directors of the Bank is quiet supportive to the training system of the Bank. BOD shows
its supportiveness in terms of allocating two million rupees annually to the training
programs. The employees responded that the Bank should try to establish its own training
institute. This will save the costs of the Bank. Moreover more employees will be able to
get trained in its training institute.
The employees recommended that they should be provided training in their

respective and relevant areas. The training methods should be updated from classroom
settings, seminars and workshops to on -the -job training. On-the-job training methods
are simple and less costly to operate. The Bank is required to consider the will of the
employees and encourage them to give novel ideas. This will improve the competitive
position of the Bank.
68
CHAPTER NINE
FINDINGS
The following findings are made after the analysis and interpretation of the
current employee orientation, training and development system of the Bank:
New employees are given formal orientation, which is mostly conducted by the Human
Resource Department, immediate supervisors of the employees and IBP. The employees
are given only a lecture regarding the Banks background and human resource polices in
the orientation process.
The training need assessment system of the Bank is more subjective in nature and does not
identify the needs and requirements of the employees more objectively.
The Bank is conducting its internal training courses in the library cum conference room at
the head office through IBP and other institutions. The small conference room has the
capacity of just 24 trainees. For specialized courses B oK relies on the competent trainers
of IBA, IBP, PIM, NIBAF and NIPA. The training system fulfills all their needs and
requirements but it is very expensive for the Bank in long run.
The employees are given written material in the training program to practice. Sometimes
no opportunity is given to the trainees to practice what they have learnt in the training
session.
The employees occasionally apply on their jobs what they had learnt in training. When the
employee fails to improve his/her skills, knowledge and attitude after training then in most
of the cases the Bank neglects the performance of the employees.
The training programs are given no weightage in the performance appraisals therefore it
discourages the employees who have been through training 83.
83
See Annexure 3.
69
RECOMMENDATIONS
To define is to destroy, to suggest is to create.
Stephane Mallarme
The following recommendations are based on the findings and are suggested for
the better performance of the Bank.
Apart from providing the different material, the Bank should try to introduce the
new employee to his /her manager and coworkers and to the overall culture of the
organization. The orientation program should review the specific duties and
responsibilities of the new members job and provide a tour to the organizations
physical facilities.
The TNA system of the Bank is more subjective in nature. The Bank should try to
involve the employees in assessing their needs. The Bank is required to consider
the will of the employees and encourage them to give novel ideas. This will
improve the competitive position of the Bank.
To avoid giving irrelevant trainings to the employees the managers of the Bank are
required to analyze their training needs carefully. This will save the resources of
the Bank. The trainers are required to teach employees the practical side of their
jobs. They should give them an opportunity to practice what they have learnt in the
training session.
The Bank of Khyber is required to modify its current in-house training methods.
This will help the Bank to save time and costs. The training methods should be
updated from classroom settings, seminars and workshops to on -the job training.
On-the-job training methods are simple and less costly to operate.
BoK is required to evaluate post-training performance of the employees. It should

develop a mechanism that includes positive reinforcement for the trainee. This will
motivate them to polish their skills, gain knowledge, and help develop their
attitude.
70
BoK is required to consider the training programs being attended by the employees
in their performance appraisals. As the existing performance appraisal does not
contain any weightage given to the training programs84.
The Bank should try to establish its own training institute. This will save the costs
of the Bank. Moreover more employees will be able to get trained in its training
institute.
A curriculum committee shall be established that meet from time to time to review
the curriculum and materials of training session.
Training department of the Bank is required to create a library of material by

designing, writing some, obtaining from the outside sources and adapting yet other
materials to the BoK environment and culture.
The trainers are required to teach employees the practical side of their jobs. They
should give them an opportunity to practice what they have learnt in the training
session.
84
See annexure 3
71
CHAPTER TEN
PROPOSED ORIENTATION PLAN FOR BoK
Everything important is already known, the only thing is to rediscover it.
Anon
The Bank of Khyber is required to carefully match the Banks and employee
expectations during the initial period of employment. A good orientation process will
help new employees adjust to their current position as well as the culture of the Bank.
The orientation plan provides an avenue in which the companys vision and mission can
be clearly and consistently communicated so that the new employees can immediately
understand their role. When orientation is done well it creates the effect of everyone
pulling in the same direction.
10.1 AN ORIENTATION PLAN IN THREE PHASES

An orientation plan of the Bank of Khyber for new hires and their managers to
help guide the employee through their initial orientation process is as follows:
10.1.1 Phase 1: Pre-Orientation

It occurs before the start date in the form of a mailed package. The Bank is
required to launch an orientation process when the job is being offered or upon
acceptance. Some of the key items in this package can include history, annual
review, organizational chart, vision, mission, key policies, benefits overview, as
well as a copy of the orientation plan checklist. Pre-orientation is a unique and
highly viable approach in providing information and creating a professional
positive first impression. In this highly competitive market, it will reinforce the
candidate's decision to join BoK.
10.1.2 Phase 2: Job-Site Orientation

It occurs during the first and second day, focusing on the physical understanding
of the workplace and includes workplace tours, introductions, equipment, hazard
identification, and a department overview. It also provides time to revisit unclear
policies and procedures. Where there are no Human Resources Personnel, the
72
Hiring Authority or Manager is often very busy and can delegate Phase 2 of the
orientation process to others. The buddy system is effective here, whereby a new
employee is paired up with an experienced or senior employee who will take
personal interest in their development and answer any queries.
10.1.3 Phase 3: Job-Specific Orientation

It occurs during the first few weeks, focusing on details such as specific duties,
job description, budgets, tools, software, and health and safety. Alternatively, it
can be divided and delivered in manageable information slices and tied closely to
the probation period. This result in a well-documented paper trail useful in future
performance management. During this time, frequent coaching and feedback
sessions will ensure that everything is on the right track. Both parties can examine
how they will work together. The new employee truly benefits from close contact
with the immediate supervisor by gaining a clear understanding of established
goals, expectations, and responsibilities. BoK can also conduct a quiz or test to
ensure that learning has taken place.
An organized, well-executed orientation plan builds a strong foundation for

learning to take place; and while it may include a new welcome lunch, the
numerous benefits of developing and using a comprehensive checklist will be
long lasting.
10.2 THREE-PHASE ORIENTATION PLAN CHECKLIST

1. Pre-Orientation
2. Job-Site Orientation
3. Job-Specific Orientation
1. Employee Name:___________________________________
Department:____________ Start date:____________
10.2.1 Pre-Orientation (Package mailed before start date)

1. Overview of history, funding, vision, mission, values and general organizational
structure
Annual Review and Organizational Chart
2. Standard policies and procedures
Hours of Work and Breaks.
73
Dress Code and Conduct

Attendance, Reporting Illness and Punctuality policy
Vacation/ Overtime
Probation Period
Health & Safety policy
Performance Management/ Salary policy
Employee Recognition Plan
Other policies as appropriate and access point of all policies
3. Compensation and Benefits

4. Employee counseling, grievance procedures, Unions
Answer any questions arising from the above mailed package phase to ensure that
the prospective employee has basic and clear understanding of conditions of
employment. Some policies may require greater explanation throughout
orientation process.
10.2.2 Job-Site Orientation (1st and 2nd day)

1. Review Checklist of Three Phase Orientation Plan (with "Buddy" or Manager)
Provide critical policies, probation period and business plan or strategic
plan
2. Introduction to co-workers and management
3. Tour workplace, visit workspace, lunchroom, washrooms and first aid locations
4. Local/department overview - relationships with departments, volunteers and Head

Office
5. Parking, local transportation and internal mail
6. Workplace security, hazards, controls, fire exits, emergency equipment location

and use
7. Communication methods, e.g. telephones, memos, intranet, bulletin boards
8. Awards and incentive activities
74
10.2.3 Job-Specific Orientation (first few weeks)
1. Review Checklist of Three-Phase Orientation Plan (with Manager)
Answer any questions arising from the previous two phases before commencing
third phase.
2. Specific duties, responsibilities, budgets and expectations by supervisor
3. Detailed review of job description and skills required
4. Training/staff development/ educational opportunities and requirements
5. Legal rights/responsibilities of workers and employers under Occupational

Health and Safety Act
6. Whom to talk to if the job is not clear
Completion and Signature Area (only when ALL items are checked)
Employee Comments: (Note ALL concerns, unclear policies, procedures and duties,
etc.)
1. _________________________________________________________
2. _________________________________________________________
3. _________________________________________________________
4. _________________________________________________________
Signature of employee:______________________________
Date of completion - Pre-Orientation:____________

Signature and comments of HR/Hiring
Authority:_________________________________________________________
Date of completion - Job-Site phase:_________________
Signature and comments of
Buddy/Manager:_________________________________________________________
Date of completion - Job-Specific phase:____________
Signature and comments of Manager:________________________________________
75
CHAPTER ELEVEN
PROPOSED PLAN OF EMPLOYEE TRAINING AND

DEVELOPMENT FOR BoK
EMPLOYEE TRAINING
The systematic development of the attitudes/knowledge/skill behavior

patterns required by an individual in order to perform adequately a given task or
job85.
EMPLOYEE DEVELOPMENT
Employee development on the other hand, generally focuses on the future jobs in
the organization. As the employees job and career progresses, new skills and abilities are
required.
11.1 PROPOSED IN-HOUSE TRAINING AND DEVELOPMENT PLAN

The Bank of Khyber is required to modify its current in-house training methods to
save time and costs. The external courses arranged by the Bank are effective but they are
very expensive. Therefore fewer employees are trained every year. The following figure
presents the proposed in-house employee training and development plan for the Bank of
Khyber.
85
Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company Ltd.,
1999, p. 2.
76
77
PROPOSED IN-HOUSE TRAINING AND DEVELOPMENT PLAN
The proposed plan has three main phases:
1. Assessment phase.
2. Training and development phase
3. Evaluation phase.
11.1.1 Assessment Phase
The assessment phase serves as a foundation for the entire training effort. Both
the training and development phase and the evaluation phase depend on inputs
from assessment phase. The purpose of the assessment phase is to define what
should the employee learn in relation to desired job behaviors. This phase
includes the following activities:
i. Training needs assessment
ii. Set training goals
i. Training Needs Assessment

Training need assessment refers to the process used to determine if training is
necessary.
Because needs assessment is the first step if it is poorly conducted, training will not
achieve the outcomes or financial benefits the company expects.
BoK uses two methods to assess the training needs of the employees. First the managers
select the trainees. This is a biased approach to assess the training needs of the
employees. Secondly, to assess the training & development needs of each employee, a
questionnaire is designed comprising of two parts: Section-1 to be completed by
employees (basic information) and Section-2 by the controlling officer. The answers of
section-2 questions are based on the perceptions of the controlling officer. This is also a
subjective approach adopted by the Bank.
In addition to performance appraisal the Bank is required to adopt the following

methods to analyze the needs of the employees more objectively:
78
a. One-to-One Interview
The managers are required to ask the employees about their deficiencies either by
having a face-to-face interview or by telephone. The employee through this
method will be in direct contact with the managers. The managers are required to
motivate the employees to have an open discussion with them.
b. Using Questionnaires
The managers can also use a comprehensive questionnaire that clearly identifies
the needs and requirements of the employees.
c. Document Analysis
The managers of the Bank can review the existing personal documents of the employee.
After reviewing the manager then is required to tactfully analyze the deficiencies of the
employee. And accordingly training sessions should be arranged.
d. Observation
The managers of the employee can also observe and review the employees in their
natural work environment and their behaviors or other items of interest be noted
and gaps in their performance be identified.
e. Advisory Committee Methods

The Bank can also establish an advisory committee consisting of experienced and
skillful bankers. The advisory committee would identify the deficiencies of the
employee. The identification of the deficiencies will be based on the views of
more then one senior managers and hence will suggest the training course
appropriate for the employee to improve or overcome the gaps between the
desired and the actual performance of the employee.
ii. Set Training Goals

The goals of the training program should relate directly to the needs determined
by the assessment process. Course objectives should clearly state what behavior
or skill will be changed as a result of the training and should relate to the mission
and strategic plan of the Bank. Setting goals will help the Bank to evaluate the
training program and also to motivate employees. The Bank should allow
employees to participate in setting goals that will ultimately increases the
probability of success of the Bank.
79
11.1.2 Training and Development Phase

The purpose of this phase is to design the environment in which the first phase
objectives can be achieved. The Bank in this phase is required to choose training
methods and techniques carefully and deliver them systematically in a supportive,
encouraging environment, based on sound principles of learning. This phase
includes the following activities:
i. In -house training venues

ii. Training methods
iii. Curriculum committee
iv. Resource persons
v. Training and development library
vi. Training calendar
i. In-House Training Venues
In housing training for reasons of cost, be held in Bank premises. Training will
go to the participants rather participants going to the training: On-the-job training,
in particular, will be based upon the largest BoK branch in the selected area. For
the other forms of training, however, the environment must be conducive to study;
where the Banks premises are unsuitable for training, other alternative premises
should be proposed, with justification and costing, for approval by manager,
personnel division.
ii. In-House Training Methods

The training methods that the Bank should employ in its in-house training
programs are as follows:
Lectures
Seminars
Workshops
Symposia
Discussion groups
Brainstorming
Case studies
Written and verbal tests
Group activities
80
Individual activities
Group presentations
Individual presentations
On-the-job training
iii. Curriculum Committee

To ensure that the curriculum and associated materials for in-house training meet
the requirements of the Bank in achieving the levels of quality that it needs of its
staff, a curriculum committee shall be established that meet from time to time to
review the curriculum and materials for content, relevance and quality.
iv. Resource Persons
The Bank cannot afford to maintain a large permanent establishment of training

officers whose sole task is to prepare and deliver training courses. For the Banks
need it is preferable to have a small core establishment and supplement this core
with a pool of resource persons.
Resource persons are the officers of the Bank selected for their knowledge, skills
and experience and trained in the methods of training delivery. In addition to the
training they receive in delivery (teaching) methods, resource persons are also
trained for the delivery of courses related to their expertise, using the material that
the Bank has prepared or acquired from other sources. Resource persons, having
completed their training as resource persons, return to their normal work place
and resume their day-to-day work.
v. Training and Development Library
Training department of the Bank is required to create a library of material by

designing and writing some, by obtaining from the outside sources and by
adapting yet other materials to the BoK environment and culture. Where BoK
creates its own materials, there must be a process of pre-delivery review and,
where necessary, editing of material. Once editing has been completed, the draft
will be submitted to the curriculum committee for clearance. Resource persons
will be the most frequent creators of the materials.
81
vi. Training Calendar

The delivery schedule in the first year will be determined principally by the
preparation of the materials. Annual review and revision of the Banks corporate
plan will determine the timing of several of the modules. The aim will be to
remind managers and personnel of their expected input and how that input should
be designed and delivered.
The resource persons to run concurrently the several courses/modules for different
cadre levels will use the delivery schedule. The participants will be given not less
than four weeks notice of the course/module dates in joining instruction letters.
11.3 Evaluation Phase
Finally, if both the assessment phase and the training and development phase have
been done competently, evaluation should present few problems. Evaluation must
provide a continuous stream of feedback that can be used to reassess training
needs, thereby creating input for the next stage of employee development. This
phase includes the following activities:
i. Develop criteria
ii. Monitor training
iii. Evaluate training
iv. Evaluate transfer of training
v. Feed Back.
i. Develop Criteria
The curriculum committee and the resource persons of the Bank will develop the
standards against which the trainees will be evaluated. These standards will
depend upon the type of the training session.
ii. Monitor Training

The resource persons will monitor the in-house training venue, media and the
trainees. If he/she feels any discrepancy in the training venue, media and material
then he/she will report to the curriculum committee.
82
iii. Evaluate Training

Training evaluation is essential for the maintenance of quality and relevance.
Curriculum committee of the Bank will make an evaluation at least twice a year.
Every participant of every course, in-house or external, has to complete a written
report at the earliest opportunity after completion of the course: for in-house
training events, the penultimate session will be training evaluation: for external
courses, participants will complete, and submit to the Training Department, the
report within 24 hours of their return to work at their normal work place at the
Bank.
The training department will take immediate action to rectify shortcomings in in-
house training after constructive criticism from majority of the participants. The
curriculum committee shall take a sample course evaluation reports to gain some
insight into the participant reaction to courses, to identify those features that are
persistently remarked upon and to make enquires about the action taken by the
Training Department.
iv. Evaluate Transfer of Training

The training department will be required to evaluate if the trainees are effectively
and continually applying what they have learnt in training on their jobs. The Bank
should design the training programs in a manner that considers the ability of the
employee to learn the material and to use it effectively, and to make the most
efficient use of resources possible.
v. Feedback
The information developed during the evaluation phase provides feedback. This
feedback will be new input to the assessment, training and development, and
evaluation. It is also important that employees be motivated by the training
experience. Employee failure in the program is not only damaging to the
employee but a waste of money as well. Selecting the right trainees is important
to the success of the program.
83
11.2 TARGET PERSONNEL
All employees of the Bank fall within the target area and the Bank will ensure, to
the extent that resources permit, all employees receive trainings regularly.
Under this plan the Bank shall be providing training to the following segments:
Management
Senior management
Middle management
Personnel engaged in credit operations

Front office personnel
Back office technical personnel
Back office service personnel
11.3 PRIORITIES
The priorities for this plan are determined by the need to ensure that:
Officers in position of authority have the knowledge and skills to carry out their
functions properly within a profit/cost center structure in which there is increasing
decentralization and accountability is strengthened.
Credit specialists have a wider range of skills commensurate with a broader, full
loan cycle responsibility and a stricter physical supervision of the beneficiary
enterprise.
Front office personnel are fully conversant with the products and service the Bank
officers and are able to provide a speedy, accurate service to the Banks customers.
Effective use of the Banks investment in information technology and systems.
The professional development of each employee is planned and is treated
equitably.
The overall priorities will be to train the following categories of employees:
Officers not yet qualified for their current position.

Officers not yet qualified for the next cadre level.
Officers making a career path change.
Computer literacy.
Introduction of new products and services.
84
11.4 INDIVIDUAL CRITERIA

The training department, in collaboration with the personnel department, will
prepare a nominal roll of employees in each segment, identifying the courses that are
required by each individual to meet the minimum criteria for the position currently held,
the minimum criteria for the next cadre level and basic computer literacy levels.
11.5 MANDATORY IN-HOUSE COURSES

The in-house training curriculum for each cadre in every career path will contain
three categories that are as follows:
11.5.1 Mandatory
An officer will not qualify for, nor will be assigned; a specific cadre unless he/she
has success fully completed the mandatory courses prescribed for the cadre level.
11.5.2 Recommended
Successful completion of recommended training will improve the ranking of a
candidate in the short-listing for a vacant post in the Bank.
11.5.3 Voluntary
Voluntary courses are those, which will enhance an officers ability to perform
without being critical to his/her performance in his/her current post.
Courses that are voluntary or recommended at one cadre level may be mandatory
at another, for example: an advanced computer literacy qualification will be
voluntary at one level, recommended at the next level and mandatory at the
subsequent level n some career paths.
11.6 TRAVEL
11.6.1 Participants
Travel by participants will be governed by BoK travel regulations; course-joining
instructions will stipulate the form of travel and costs.
11.6.2 Resource Persons
Travel by resource persons will be governed by BoK travel regulations; course-

joining instructions will stipulate the form of travel and costs.
85
11.6.3 BoK Instructors
Travel by BoK instructors will be governed by BoK travel regulations; course-

joining instructions will stipulate the form of travel and costs.
11.6.4 Guest Speakers
Travel means and class will be agreed between the Bank and each guest speaker
individually when the terms and conditions of the commission are discussed.
11.7 ACCOMMODATION AND SUBSISTENCE

11.7.1 Participants
Accommodation for the participants will be governed by BoK travel regulations;

course-joining instructions will stipulate the type of accommodation and the level
of the subsistence allowance.
11.7.2 Resource Persons

Accommodation for the resource persons will be governed by BoK travel
regulations; course-joining instructions will stipulate the type of accommodation
and the level of the subsistence allowance.
11.7.3 BoK Instructor

11.7.4 Guest Speaker

86
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Prentice Hall.
5. Daft Richard L. (1998). Management. USA: Holt Rinehart & Winston, Inc.
6. Davis Stanley N. and Lawrence Paul R. (1977). Matrix. USA: Addison-

Wesley.
7. Decenzo David A. and Stephen Robbins P. (1996). Human Resource

Management. New York: John Wiley & Sons, Inc.
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Management. Ed. 6th. New York: John Wiley & Sons, Inc
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Fundamentals of Management. Ed. 5th. Texas: Business Publications Inc.
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11. Downling William, F. and Sayles Leonardo R. (1978). How Managers

Motivate the Imperatives of Supervision. New York: McGraw Hill Inc.
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Ed. 1st. Tokyo.
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Company.
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14. Haag Stephen, Cummings Maeve and Dawkins James. (1998).

Management Information System For Information Age. Ed. International.
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Information System. Ed. 3rd . New Jersey: Prentice Hall, Inc.
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Effective Business Communications. Ed. 7th . USA: Irwin McGraw Hill.
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Unleashing the power of workforce. Boston: Harvard Business School
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89

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Final Report The Bank of Khyber

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The Bank of Khyber Employee Training and Development

INTRODUCTION TO THE REPORT

Employee training and developing helps to increase productivity, reduce

1.2 BACKGROUND OF THE STUDY

1.3 PURPOSE OF THE STUDY

Employee training and development includes new employee orientation,

An orientation program should familiarize the new member with the

Employee training is more present-day oriented; its focus is on individual current

1.4 SCOPE OF THE STUDY

1.5 RESEARCH METHODOLOGY

1.5.1 Primary Data

Mainly questionnaires and face-to-face interviews have been conducted to collect

1.5.1.1 Face-to-face Interviews

Interviews conducted are of three types depending upon their nature of

2. Semi Structured Interviews

Similarly, unstructured interviews are conducted when questions are asked

1.5.2 Secondary Data

2. Documents Published by the Bank of Khyber (BoK)

3. The Bank of Khyber Official Website

1.6 LIMITATIONS OF THE STUDY

Lack of information about training and development of the bank as well as no

1.7 SCHEME OF THE REPORT

1.7.1 SECTION 1: INTRODUCTION TO THE REPORT

1.7.2 SECTION 2: ORGANIZATIONAL REVIEW

2. Literature Review: New Employee Orientation.

3. Literature Review: Emplyee Training.

4. Literature Review: Employee Development.

5. New Employee Orientation at the Bank of Khyber.

6. Employee Training and Development at the Bank of Khyber.

1.7.3 SECTION 3: ANALYSIS

1.7.4 SECTION 4: FINDINGS AND RECOMMENDATIONS

3. Proposed Orientation Plan for the Bank of Khyber.

If we want to create a workplace that values idealism, human

2.1 DEFINITION OF BANK

Bank can be defined as:

2.2 HISTORICAL BACKGROUND OF THE BANK OF KHYBER

The BoK was established to:1

2.2.1 Scheduled Bank Status

2.2.2 The Paid up Capital of the Bank

2.3 BRANCHES IN PAKISTAN

1.4 VISION STATEMENT OF BoK

Gradual conversion into ISLAMIC BANKING to develop and promote a

2.5 MISSION STATEMENT OF BoK

To increase shareholders value and provide excellent service and innovative

2.6 CORE VALUES OF BoK

The core values of BoK are as follows:6

2.7 OBJECTIVES OF BoK

ii. To promote industrial agricultural and socio -economic processes through

iii. Help under-developed areas and create employment opportunities,

2.8 BOARD OF DIRECTORS

BOARD OF DIRECTORS OF THE BANK OF KHYBER

Mr. Mir Laiq Shah

Mr.Zia-ur-Rehman Mr. Muhammad Asif Mr. M. Shakir

Dr. Zubair Khan Mr. Syed M Abbas Mr. Turan

Dr. Munir Ahmad

2.9 MANPOWER POSITION

2.10 ORGANIZATIONAL STRUCTURE OF BoK

The organization structure of BoK is based on functional (U-Form) design. The

2.11 ORGANIZATION HIERARCHY

The nomenclature of various posts in the bank is as under:

2.12 ORGANIZATIONAL CHART

The organizational chart of the Bank of Khyber is as follows:

THE ORGANIZATIONAL CHART