Project on MCB GCUF

8/12/2019 Project on MCB GCUF

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Muslim Commercial Bank Page 3

Executive Summary:

In this report we are observing that how Muslim Commercial Bank works in Pakistan.

And focus on their Planning, Mission statement, goals, their chain of command, HRM

department, SWOT analysis and their Organogram.

Formal and informal planning, which strategy used to achieve their goal. Criteria of job

analysis, the rewards which are given to employees for motivation etc. In strategic

management employees can give their suggestions mean centralized method is use in MCB.

All component of mission statement use in MCB for achieving their stated goal. Spot award like,

certificates, trophies and cash is given to employees. Indoor tanning is use; High valued

customers are awarded by Colanders and diaries. We also discussed their competitive

strategies; in SWOT analysis discuss the strength and weaknesses of MCB. Discuss their Board

of director and other managers which are working in MCB.

In this project, we have almost discussed each part of the MCBs quality management

with Its customers. We discussed that how MCB made it easier for their customer to use their

ATM machines and also the cards which are easily specified with the customers perceived

decisions whether they will have the transactions directly or indirectly and these ATM machines

which are almost available in every corner in the main cities and as well as the rural areas of

Pakistan.

This project tells that how MCB bank uses its values to improve the quality of its

management and these are innovation, integrity, excellence and customer centricity these

values are noted and judged by the customer focus on the MCB qualities.

At last therefore, this is the summary of what we have done in this project and an

overall view of the MCBs quality management, which has been properly discussed in this

summary as well.


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Muslim Commercial Bank Ltd.

Introduction:

Before separation of Indo Pak, the need for Muslim Banks was felt. And Muslims having

strong financial capacity were thinking to invest in this sector as well. This was the idea which

provided the way for setting up MUSLIM COMMERCIAL BANK Ltd known as MCB.This was the

third Muslim Bank in the subcontinent.

This bank was incorporated under companies act 1913 on 9th

July, 1947 (just before

partition) at Calcutta.

MCB soon earned the reputation of a solid and conservative financial institution

managed by expatriate executives. In 1974, MCB was nationalized along with all other private

sector banks. This led to deterioration in the quality of the Banks loan portfo lio and service

quality, Then MCB became a private bank in 1991. During the last fifteen years, the Bank has

concentrated on growth through improving service quality, investment in technology and

people, utilizing its extensive branch network, developing a large and stable deposit base and

managing its non-performing loans via improved risk management processes.

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion.

Total assets of around Rs.300 billion. The Bank has a customer base of approximately 4 million.

Nationwide distribution network of over 1,000 branches .Over 450 ATMs in the market.


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Planning Function of MCB

MCB enjoys the unique position of being the Bank for Life because of its commitment to

excellence and its constant endeavor to make banking convenient for everybody. MCB shares

the element of convenience with water because not only is water the basis of life but also takes

on the form and shape of the vessel it is kept in. MCB too quenches the thirst for convenience

by taking on different forms according to the needs and requirements of the consumer.

MCB is the formal organization. Its planning are Written, specific, and long-term focus, involves

shared goals.

MCB VISION & MISSION Statement:

Vision Statement

To be the leading financial services provider, partnering with our customers for a more

prosperous and secure future.

Mission Statement

We are a team of committed professionals, providing innovative and efficient financial

solutions to create and nurture long-term relationships with our customers. In doing so, we

ensure that our shareholders can invest with confidence in us.

All component of mission statement use in MCB


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MCBs Overall Strategy

MCB are idea generators for better business and management solutions to the wide

customer range in the country and abroad. They do not just wait for opportunities to appear;

they act on creating new ones. Customer centric strategy helps them in improving themselves

year to year. Retaining their customers enables them to materialize their targets into returns

that bring mutual benefits to all stakeholders and MCB. They are emphasizing on the right

marketing strategies and mix of products & services to compete. While continuing to meet and

exceed market expectations, MCB Bank Limited is committed on meticulous compliance with

regulations and building stronger layers of ethics and sustainability.

Business Strategy

MCB Bank structures its products / services in line with .The financial requirements of its

customers and MCB product development teams are constantly tapping the unbanked segment

of the population for their induction in the banking arena. Diversification in banking services is

crucial for proper identification and generation of relevant need-based solutions. This strategy

has helped them to serve their clientele without break for decades. Technology now goes handin hand in serving the massive 4.9 million customers of MCB Bank.

Financial Strategy

In times where recovery is slow and dynamics of the economy continue to play volatile

role, MCB Bank Limited has positioned itself to gain from every possible opportunity,

translating them in revenue streams. The strength depicted by the asset base is reflection of

the prudent and risk management strategies that would enable the Bank to achieve sustainable

financial growth.


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Competitive Strategy

After making the mix structure of basic elements of marketing the banks focus on

growth strategies.

Growth strategy is further divided in to four strategies:

Market Penetration Strategy

Market Development Strategy

Product Development Strategy

Diversification Strategy

1. Market Penetration StrategyWith the help of this strategy the bank management first consider either it could

gain more market share or not with its current products in their current markets.

2. Market Development Strategy:In this it considers whether it can find or develop new markets for its current

products.

3. Product Development Strategy:Then, it considers whether it can develop new products of impending interest to its

current markets


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SWOT Analysis of MCB

Internal Analysis

Strengths:

1. MCB is the first Pakistani privatized bank because of its quality management, marketing,

innovation in product and services is performing well in financial market.

2. It has created a good reputation in the banking sector.

3. It has 1200+ branches on different places in Pakistan.

4. It has one of the nations largest ATM network with more than 500 ATMs covering 110

cities across the country and it is still growing.

5. It provides MCB mobile ATM for convenient world class banking services.

Weaknesses:

1. Mismanagement of time is the biggest mistake in MCB branches that the official time of

bank closing is 5:30pm but the staffs is normally on their seats till 7:00pm to 9:00pm.

2. Due to the lack of advertisement majority of the people are not well aware about the

products of MCB.

3. Most of the staff and employees are dissatisfied due to low salaries as compared to same

position in other banks.

4. MCB has numbers of employees of the period when the MCB was nationalized bank they

cannot perform their duty as like employees in other banks. They always show rude

attitude that is not much motivating for new customer.

5. There is lack of skills and training of employees. MCB have to give attention to improve

the skills and abilities of the employees according to modern banking requirements.


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External Analysis

Opportunities:

1. MCB bank can capture big portion of the market by expanding their branches and ATM

network to other countries.

2. MCB has to launch some new product or services like tale bank and internet banking etc.

3. Media is powerful tool of communication. MCB have to use it for advertisement of new

product and severs provided by MCB bank. By adverting MCB can create more new

customers.

4. MCB bank has to start some kind of Social services or for culture benefit. By doing this it

can motivate its customer that you are contributing in this services by parching and

using MCB services.

5. Now the concept of Islamic banking is increasing in Pakistan. There is opportunities that

by creating Islamic branches all over the country and fallow Islamic structure in those

branches. It should also create Islamic product for customers

Threats:

1. In Pakistan the banking sector is growing rapidly and it has attracts the business men to enter

in banking sector. Some foreign banks have started their business in Pakistan. Now MCB

bank has to compete with great effort by giving superior services.

2. From few years Pakistan is facing a lot of problems like energy crisis, rising prices of

product. Govt. of Pakistan is borrowing money from State Bank of Pakistan and from

commercial banks also and due to lack of money to give to depositor many banks can cause

to bankrupt.

3. Foreign banks are increasing in Pakistan


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Organogram of MCB


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Board of Directors

Mian Mohammad Mansha (Non-Executive Director)Chairman

S.M.Muneer (Non-Executive Director)Vice Chairman

Tariq Rafi (Non-Executive Director)

Shahzad Saleem (Non-Executive Director)

Sarmad Amin (Non-Executive Director)

Mian Raza Mansha (Non-Executive Director)

Mian Umer Mansha (Non-Executive Director)

Aftab Ahmad Khan (Non-Executive Director)

Manzar Mushtaq (Non-Executive Director)

Ahmad Alman Aslam (Non-Executive Director)

Dato Seri Ismail Shahudin (Non-Executive Director)

Datuk Abdul Farid Bin Alias (Non-Executive Director)

Imran Maqbool (Executive Director)

President / CEO

Audit CommitteeTariq Rafi (Non-Executive n Director)Chairman

Aftab Ahmad Khan (Non-Executive Director)


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Dato Seri Ismail Shahudin (Non-Executive Director)

Ahmad Alman Aslam (Non-Executive Director)

Work Specialization of MCB

Number of employees:

MCB bank since its incorporation has the more potential bank not only for

its customer but also for its employee. MCB bank offering great working

opportunities for all the people who are interested to do job in MCB.an d with

passage of time employee is increases and its business volume is increase because

MCB provide enhance career opportunities with dynamic work according to their

education and experience level currently .Employee are working in MCB including

contractual and permanent staff.

Total Numbers of employee = 9946

Staff of branch consists of 13 Members

Designation NO. of Employees

Branch manager 01 Grade i

Operational Manager 01 Grade i

Customer Service Officer 01

Cretid Manager 01 Grade iii

General Banking Officer 01 Grade iii

Cashier 01 Grade iii

Cash Officer 01

System Administration 01

Gun Man 02

Peons 02


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Leading Function of MCB

HUMAN RESOURSE MANAGEMENTPROCESS IN THE MUSLIM COMMERCIAL BANK.

Human resource planning and forecasting

Employee Recruitment and Selection

Training And Development

Performance Management

Employee Compensation And Benefits

Organizational Career Management

Human resource planning and forecasting

Determining the Objectives.

Defining skills required to meet the objectives.

Determine additional human resource requirements.

Develop actions to meet the anticipated HR needs.

Employee Selection and Recruitment

Human Resource Department has combined many selection techniques i.e. job

application form , employment test, interview, and physical examination.


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The step to step Recruitment process followed by organization is:

Identify Candidates:

MCB identifies its candidates by developing the criteria of job description and job

specification and acting upon these criteria job vacancy ads are spread through different

Medias like newspapers and internet

External Sources

Press Advertisement Educational Institutes

Placement Agencies Employment Exchanges

Unsolicited Applicants Employee Referrals / Recommendations


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Employment Selection Process:

Recruitment and selection in MCB has many processes and steps that must be followed.

Decide what positions to fill, through personal planning and forecasting

Build a pool of candidates for these jobs, by Recruiting internal or external

candidates.

Have candidates complete application form and perhaps undergo initial screening

Interviews.

Use selection tools like tests, background investigations, and physical exams to identify

viable candidates.

Decide who to make an offer to, by having the supervisor and perhaps others interview the

candidates

Screening and Short Listing:

Many candidates apply for job in response to vacancy ads by submitting

their CVs. Selection board goes through those CVs and selects those candidates which initially

fulfill criteria of selection board. After prescreening selection board short lists the candidates

who are considered most suitable for job at initial level on the basis of their resume

Test / Interview:

In this process short listed candidates are called for test and interview according to

nature of their applied jobs.

Selection Interview:

Selection interview is conducted for short listed candidates. A selection interview is the procedure

designed to predict future job performance on the basis of applicants oral responses to oral

inquiries.


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Formats Used In Selection Interview:

Structured/Directed

Unstructured/Non directed

Modes Of Interview :

Penal interview:

An interview in which a group of interviewers questions the applicant.

Structured sequential interview:

An interview in which the applicant is interviewed sequentially by several persons ; each rates the

applicant on a standard form.


Training is the organized procedure by which people learn knowledge and/or skills for a definite

purpose.MCB has a mix of training methodologies for its employees. We can broadly

categorize these methods into five groups:

On-the-job Training

Off-the-job Training

Apprenticeship Training

Informal learning

Effective lectures


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EMPLOYEE DEVELOPMENT

Employee development is a joint, on-going effort on the part of an employee and the organization

for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful

employee development requires a balance between an individual's career needs and goals and the

organization's need to get work done. Employee development programs make positive contributions to

organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's

group can accomplish more as employees gain in experience and knowledge

Performance Appraisal

MCB Pakistans performance appraisal system is based on a combinationof 'MBO and 'Enabling

Traits' approaches, under which:60% weight age is given to performance goals discussed and laid out in

the beginning of the year.

Another 40% weight age is assigned to enabling personality factors, which are clarified to all

employees by their supervising officers at the start of each year.

Financial Benefits

Life Insurance

Disability Insurance

Medical Allowances

Pension Plans

Severance Pay

Conveyance Allowance

Bonuses

Profit Sharing


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Non-Financial Benefits

Sound Working Environment


Job Security

Pick And Drop Facility

Sick Leave/ Vacations

Flexible Work Arrangement

Flex Hours

Compensation And Benefits In MCB

MCB awards their employees a lucrative (attractive) compensation in return of their tough mental

labor. Apart from basic salaries they are offered many other benefits like:

Utility Allowance

Medical Allowance

Overtime Allowance

Education Allowance

House Rent Allowance

Bonuses


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Muslim commercial bank is a financial institution should provide security to their

customer confidential information and provide clear and accurate documentation.

The bank should focus to improve the quality of the service and should bring innovation.

The bank should have to increase its number of ATM service so that can increase its customer.

Should involve in social work and should gain the trust of the customer. All the policy of the

bank should be clear to the customer because if customer is unaware by any policy it may

become the cause to lost the customer, the employee of the bank should to be friendly with the

customer

. The bank should solve the problems of their customer quickly and should provide

helpline service. The procedure of the bank service should have to be simple and the

organization should advertise their services in TV channel in newspaper so the customer may

become aware. The bank has to display all its new services in its website.

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