PROJECT REPORT

On
SONERI BANK PVT LTD

Prepared by
Salman Khaliq Bajwa (17817)
Farooq ur Rehman (17172)
Tarfa Pasha (17470)

Project Advisor
Lecturer, Ms. Maira Akhter

College of Business Management

Institute of Business Management
Karachi

DEDICATION

This report is dedicated to

Our Parents,
Whose love, affection and support helped s in bringing our work to this level of
accomplishments; we are also thankful to them for educating us for unconditional support and
encouragement to pursue our interests, even when the interest went beyond the boundaries of
field and scope. Without their support and kindness this work would not have been possible.

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ACKNOWLEDEMENT
Praise to Allah the most beneficent and the most merciful.
We are using this opportunity to express our gratitude to everyone who supported us throughout
the course of this project. We are thankful for their aspiring guidance, invaluably constructive
criticism and friendly advice during the project work. We are sincerely grateful to them for
sharing their truthful and illuminating views on a number of issues related to the project.

We are also grateful to our Lecturer/Project Advisor Ms. Maira Akhter, for enlightening us with
her precious knowledge and vast experience to benefit us in the future. We are also thankful to
the Senior Assistant Librarian & HoD, Mr. Sharif Nasir for his efforts. We also like to thank all
the other staff members who directly or indirectly supported and assisted us.

We would also thank with all gratitude and depth of our hearts to the management of SONERI
BANK who helped us but with integrity and supported us in all our hardships. Finally our
sincere thanks to our institute IoBM, College of Business Management, for providing us the
opportunity to gave us the strength to undertake this project.
We pray this effort may prove to be the beginning of new era, a era in which Management
Sciences may make great progress in Pakistan and Pakistan may become a part of the developed
nations.
Thank you.

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ABSTRACT
Management in business and organizations is the function that coordinates the efforts of people
to accomplish goals and objectives using available resources efficiently and effectively.
Management
comprises planning, organizing, staffing, leading or
directing,
and controlling an organization to accomplish the goal. Resourcing encompasses the deployment
and manipulation of human resources, financial resources, technological resources, and natural
resources. Management is also an academic discipline, a social science whose objective is to
study social organizations.
The main purpose of Principles of Marketing is to understand the management, types of
management and functions of management so that one when goes into the market after
completing his MBA and occupies a certain managerial position in the organization, he should
have knowledge of each and everything related to the management so that the organizational
goals could be achieved easily.
The main reason of this activity is to understand how an organization tries to follow and
implement the four main functions of management namely Planning, Organizing, Controlling &
Influencing within the organization to achieve its goal effectively and efficiently.

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Table of Contents
List of Figures..................................................................................................................................8
List of Tables...................................................................................................................................9
CHAPTER 1:.................................................................................................................................13
PROJECT OBJECTIVES..............................................................................................................13
1.1-Project Objective:....................................................................................................................14
1.2-Aim:.........................................................................................................................................14
1.2.1-Objective:..................................................................................................... 14

1.3-Problem Discussion:................................................................................................................15
1.3.1-Common Problems Faced by Organizations in terms of Management..........15

1.4-Problem Solution:....................................................................................................................15
1.5-Methodology:..........................................................................................................................16
1.6.1-PhaseI- Defining the Objectives:............................................................................. 16
1.6.2- Phase II- Collection & Selection of the Information:....................................................16
Soneri Banks Visit:................................................................................................ 16
1.6.3-Phase III- Report Writing:...................................................................................... 20

1.6-Implementation of POLC for this Acticity:.............................................................................21

CHAPTER 2:.................................................................................................................................24
INTRODUCTION.........................................................................................................................24
2.0-Introduction:............................................................................................................................24
2.1-Introduction......................................................................................................... 24
2.1.2-Essence of Management:.................................................................................... 24
2.1.3-Charactrestics of Management:................................................................25
2.1.4-Scope of the Management:.......................................................................25

2.2-History:....................................................................................................................................25
2.2.1-Management by Different Contributors:.................................................................26
2.2.1.1- Classic Definitions:....................................................................................... 26
2.2.1.2-Modern Definitions:....................................................................................... 27
2.2.1.3-Four Principles of Management:.............................................................27
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2.2.1.3-General Principles of Management:.......................................................28

CHAPTER 3:.................................................................................................................................30
SONERI BANK/AN OVERVIEW................................................................................................30
3.1-Introduction:............................................................................................................................30
3.1.1-Mission:........................................................................................................ 31
3.1.2-Vision:........................................................................................................... 31
3.1.3-Core Values:................................................................................................. 32
3.1.4- History of Soneri Bank:................................................................................ 32
3.1.5-Functions of Management in Soneri Bank:...................................................33
3.1.5.1-Planning:................................................................................................... 33

CHAPTER 4:.................................................................................................................................35
3.1.5.2-Organizing:................................................................................................ 37
3.1.5.2.1-Importance of Organizing:...................................................................37
3.1.5.2.2-The Organizing Process:......................................................................37
3.1.5.2.3-Organizational Structure of Soneri Bank:...........................................38
Board of Directors:.................................................................................................. 39
3.1.5.2.3.1-Departments in Soneri Bank:...........................................................41
3.1.5.2.4-Authority:............................................................................................... 43
3.1.5.2.4.1-Authority in Soneri Bank:....................................................................44
3.1.5.2.5-Span Management:................................................................................44
3.1.5.2.5.1-.Span Management in Soneri Bank:....................................................44
3.1.5.3-Influencing:............................................................................................... 45
3.1.5.3.1. Influencing Process:........................................................................... 45
3.1.5.3.1-Influencing in Soneri Bank:.................................................................45
3.1.5.4-Controlling:................................................................................................ 46
3.1.5.4.1-The Controlling Process:......................................................................46
3.1.5.4.2-The Controlling Process in Soneri Bank:..............................................46
3.1.5.5-Decision Making:....................................................................................... 47
3.1.5.5.1-Importance of Decision Making:..........................................................48
3.1.5.5.2-Decision Making in Soneri Bank:.........................................................49
3.1.5.5-Corporate Social Responsibility (CSR):......................................................50
3.1.5.5.5.1 CSR Activities Performed by Soneri Bank:........................................51

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CHAPTER 4:.................................................................................................................................53
GANTT CHART............................................................................................................................53
4.0-Gantt Chart:.............................................................................................................................54
CHAPTER 5:.................................................................................................................................56
ECONOMIC ANALYSIS..............................................................................................................56
5.0-Economic Analysis:.................................................................................................................57
5.1-Rating of SONERI BANK:.................................................................................. 57
5.2-Graphical Information:.................................................................................... 58

CHAPTER 6:.................................................................................................................................60
CONCLUSION..............................................................................................................................60
6.0-Conclusion:..............................................................................................................................61
CHAPTER 7:.................................................................................................................................62
FUTURE RECOOMENDATIONS...............................................................................................62
7.0-Future Recommendations:.......................................................................................................63
CHAPTER 8:.................................................................................................................................64
REFERENCES..............................................................................................................................64
8.0-Refrences:................................................................................................................................65
8.1-WEB Refrences:.................................................................................................... 65
8.2-Book References:............................................................................................. 65

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List of Figures
Figure-1-Methadology...................................................................................................................17
Figure-1.1-Group Structure...........................................................................................................18
Figure-1.2-Input/Output Process...................................................................................................19
Fgure-1.3-Functions of Mnagement..............................................................................................19
Fgure-1.4-The Planning Process....................................................................................................31
Fgure-1.5-Planning Process in Soneri Bank..................................................................................33
Fgure-1.6-The Organizing Process ...............................................................................................34
Fgure-1.7-Organizational Structure...............................................................................................35
Fgure-1.8-Decision Making Process.............................................................................................42
Fgure-1.9-Level of Management Vs Scope of Decision...............................................................43
Fgure-2.0-Mnagers Vs Decision Scope.........................................................................................45

List of Tables
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Table-1.0-List of
Departments
..38

Table-2.0- Colour Scheme.............................................................................................................39

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CHAPTER 1:
PROJECT OBJECTIVES

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1.1-Project Objective:
The objective of this project is to understand management, basic principles of management and
how an organization tries to follow and implement the four main functions of management
namely Planning, Organizing, Influencing and Controlling within the organization, and CSR to
achieve its goal effectively and efficiently.

1.2-Aim:
The aim of our project is to see how SONERI BANK Pvt. Ltd. follows and implements the four
main functions of management namely Planning, Organizing, Influencing, & Controlling within
its organization and how effectively playing the social responsibility of organization towards the
society (CSR).

1.2.1-Objective:
The objective of our project is to understand the four main functions of management.

Planning

Organizing

Influencing/Leading

Controlling

CSR

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1.3-Problem Discussion:
Sometime, Managers or the Organizations fail to achieve their targets/goals due to different
reasons. The reason of this activity is to understand the problems faced by Organizations or
Managers in terms of Management.

1.3.1-Common Problems Faced by Organizations in terms of

Management

No proper Planning (No proper roadmap/strategy formed to reach the target)

Difficulty in Organizing (No unity of Command or Direction/No proper Division of

work)

Difficulty in Controlling and Leading

1.4-Problem Solution:
The project has been chosen to minimize the problems of Managers working in different
organizations on different positions. The advantages of this project are:

Understanding the Planning process to minimize the risk of failure.

Understanding the Organizing process to maximize the efficiency of the workers,

working within the organization.

Understanding the Influencing process to lead people.
Understanding the Controlling process to control and maintain budget, make decisions

etc.
Understanding the effectiveness of CSR

1.5-Methodology:
We have divided this project into following major phases:

Phase I-Defining the Objectives

Phase II-Collection and Selection of the Information by visiting Soneri Bank
Pvt Ltd.
Phase III- Report Writing

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1.6.1-PhaseI- Defining the Objectives:

The objective design phase included mainly the determination of the purpose of this activity. The
first step in this phase was the identification of aim and objectives. It actually gives the direction
what our tasks was and in which direction we had to move.

1.6.2- Phase II- Collection & Selection of the Information:

Once our objectives were properly defined, we decided to collect the information by visiting the
HR department of Soneri Bank. We visited Soneri Bank (Head Office) on 22nd of Oct, 2014, met
the HR Head, Mr. zahid Hussain and had a very informative session with him. We also did some
literature review and research for the proper understanding of the whole activity by going
through different case studies and visiting websites. When all the information was collected, the
main task was to analyze and compile the data for report writing.

Soneri Banks Visit:

Enterance

Reception

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A group photo with Mr. Zahid Hussain, HR Head (From Right to left with Mr. Farooq)

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HR Training Division, Soneri Bank

Meeting with the HR Head

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Refrehment

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1.6.3-Phase III- Report Writing:

Once all the information and data was collected and compiled, the most important task was to
write the report. Different tasks were assigned to every member of the group so that everyone
would be the part of this activity. Different sample reports were also reviewed so that there
should not be something missing.

Phase I
Defining
Objectives

Phase II
Collection/Se
lection of
data

Phase III
Report
Writing

Figure-1.0-Methadology

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1.6-Implementation of POLC for this Activity:

We have also decided to use and implement the four functions of Management namely Planning,
Organizing, Leading and Controlling in this activity.
Our goal is to understand the principles and functions of management in this activity and write a
report on it.

1. Planning:
Planning is basically forming a strategy to reach your goal. In this section, we defined our
objectives and planned how to reach them. We also have set timelines for different tasks so
that we would not have to face any difficulty at the time of report submission.
2. Organizing:
In this section, we have divided the whole activity into different segments so that everyone
would be the part of this project. Mr. Salman was made the manager of the project whose
responsibility was to manage all the group members and assign them different tasks and keep
them engage in this whole activity. Structure of our organization is given below;

Mr. Salman
Manager/Leade
r

Mr. Farooq

Mr. Tarfa
Pasha

Information
Analyst

Information

Figure-1.1- Group Structure

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3. Influencing:
Influencing requires managers to motivate employees/workers to achieve business objectives
and goals. It requires the use of authority to achieve those ends as well as the ability to
communicate effectively. Mr. Salman was the manager so he kept motivating the group
members by using the Henry Gantts Reward Theory by inviting all the members for
dinner.

4. Controlling:
Controlling is a function of management that involves measuring achievement against
established objectives and goals. It also requires managers to be able to identify sources of
deviation from successful accomplishment and to provide a corrective course of action. Mr.
Salman, being the manger of the group was responsible for controlling the cost of this whole
activity because it was a self financed activity. He was also responsible for taking decisions.

Input

Process

Output

(Resources)

(Activities)

(Report)

Figure-1.2-Inputr/Output Process

Planning

Influencing

Organizing

Controlling

Figure-1.3- Functions of Management

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CHAPTER 2:
INTRODUCTION

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2.0-Introduction:
2.1-Introduction
Management is basically the process of reaching organizational goals by working with or
through people and other organizational resources (capital, material and monetary etc).
2.1.2-Essence of Management:
It is a process by which unrelated resources are integrated to the system for the accomplishment
of object/goal/ task etc.
2.1.3-Charactrestics of Management:

It is a continuing process.
It concentrates on Organizational goals.
It reaches these goals by working with or through people

2.1.4-Scope of the Management:

Management involves identifying the mission, objective, procedures, rules and the manipulation
of the human capital of an enterprise to contribute to the success of the enterprise. This implies
effective communication: an enterprise environment (as opposed to a physical or mechanical
mechanism), implies human motivation and implies some sort of successful progress or system
outcome. As such, management is not the manipulation of a mechanism (machine or automated
program), not the herding of animals, and can occur in both a legal as well as illegal enterprise
and environment. Management does not need to be seen from enterprise point of view alone,
because management is an essential function to improve one's life and relationships.
Management is there everywhere and it has a wider range of application. Based on this,
management must have humans, communication, and a positive enterprise endeavor. Plans,
measurements, motivational psychological tools, goals, and economic measures (profit, etc.) may
or may not be necessary components for there to be management. At first, one views
management functionally, such as measuring quantity, adjusting plans, meeting goals. This
applies even in situations where planning does not take place.

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2.2-History:
Our society could neither exist as we know it today nor improve the steady stream of managers
to guide its organizations/firms/countries etc. Peter Drucker emphasized on this point when he
stated that
The effective management is the main resource of developed countries and the most needed
resource of developing ones.
Man used to live in Caves thousand years ago. The first thing he did was he started learning
Management; by managing things/resources. He learnt how to manage the population while
living together. He learnt to manage his food with increasing population day by day. He learnt to
store the water. He learnt how to fight with his enemies with fewer resources. These all were the
examples of Management. So we can say that Management is as old as the Man is.
The word manage has been taken from Italian word maneggiare means to handle something.
In 16th century, the word Manage was quickly extended to Operations of War and in sense of
Taking Control, Taking Charge, or Directing. Later, it mixed up with a French word Menager
means to use carefully. In 17th and 18th centuries the word Manage and Menage
overlapped in usage and todays meaning of Manager is colored by these variations.
Management was originally used to indicate the process for managing, training or directing. It
was initially used for sports, then for house-keeping and later for Government and Business
affairs.
It would be iniquitous, discussing Management without Mark Parker Follet, Peter Drucker,
Henry Foyl, Louis Allen, Fredrick Taylor, Frank Gilbert and Henry Gantt. Even, Henry Foyl has
great contributions for todays Modern Management. He is the one who gave the concept of
Functions of Management and 14 General Principles of Management which are still being
taught, followed and implemented in our modern world.

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2.2.1-Management by Different Contributors:

Different Contributors have given the different definitions of Management divided into two
categories;

Classical Definitions
Modern Definition

2.2.1.1- Classic Definitions:

Some of the definitions given by different contributors towards management are;
1. Mary Parker Follet:
"Management is the art of getting things done through others"
2.

Henry Fayol:

"To manage is to forecast and to plan,organize,to command,to co-ordinate and to control"

3.

Louis allen:

"Management is what a manager does"

4. McFarland:
Management is defined as the Process by which managers create, direct, maintain, and operate
purposive organizations through coordinated and cooperative human effort.
2.2.1.2-Modern Definitions:
Modern management is the process of working with and through people and other organizational
resources to accomplish organizational goals.

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2.2.1.3-Four Principles of Management:

Management involves far more than just telling others what to do. Before any of you decide
that you think you can do your boss's job, let's take a look into more of what a manager does.
The major functions that a manager completes can be categorized into four different functions
known as planning, organizing, leading, and controlling. For some of us, we only see the final
two - leading and controlling - but you should know that for every managerial behavior you do
see, there is an equal amount that you do not. Behind the manager's closed door, he or she
spends a good deal of his or her time planning and organizing so that he or she can effectively
carry out the functions of leading and controlling.
Henry Foyl is the one who gave these four functions of management.
- Planning: Planning is basically a roadmap or a strategy to reach organizational goals.
- Organizing: Assigning the tasks to different individuals or groups within the organization and
setting up the organizational hierarchy.
- Influencing: Influencing involves leading, supervising and motivating employees/workers.
- Controlling: Controlling is a function of management that mainly involves controlling budget,
evaluating the performance and decision making process.
He also gave 14 General Principles of Management that are still followed and implemented in
almost every organization.

2.2.1.3-General Principles of Management:

The fourteen General Principles of Management given by Henry Foyl are given
below;
1. Unity of Command
2. Unity of Direction
3. Division of Work
4. Centralization
5. Remuneration
6. Stability
7. Initiative
8. Scalar Chain
9. Equity
10.Espirit De Corps
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11.Authority
12.Discipline
13.Subordination
14.Stability of Tenure

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CHAPTER 3:
SONERI BANK/AN OVERVIEW

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3.1-Introduction:
Soneri Bank Pvt Ltd is a pure Pakistani Commercial Bank, which was initially started from
Lahore in 1992. Its head office has now been shifted to Karachi and is located on I.I. Chundrigar
Road Karachi, Pakistan. It is operating successfully in all over Pakistan with more than 256
branches.
The bank operates in four segments; Corporate Finance, Trading and Tales, Retail Banking and
Commercial Banking. Corporate finance includes syndicated financing and services provided in
connection with mergers and acquisitions, underwriting, privatization, securitizations, debt,
equity, syndication, Initial public offers (IPO) and secondary private placement. Trading and sale
segment includes fixed income, equity, foreign exchange, commodities, credit, funding, own
position securities, brokerage debt and prime brokerage. Retail banking segment includes retail
lending and deposit, banking services, private lending and deposit, trust and estates investment
advice and merchant/ commercial/ corporate cards. Commercial banking includes project
finance, real estate, export finance, trade finance, factoring and leasing. The essence of the
banks business philosophy is tocater to the banking requirements of small & medium sized
entrepreneurs, providing them qualitative & competitive services with emphasis on encouraging
exports. Nearly forty percent of our credit portfolio is related to export financing and credit
decisions are taken within 48 hours. Soneri bank Limited is engaged in banking service, and
operate more than 250+ branches including Islamic Banking Branches in Pakistan.

3.1.1-Mission:
We Provide Innovative and Efficient Financial Solutions to our Customers.

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3.1.2-Vision:
To better serve customers to help them and the society grow.

3.1.3-Core Values:

We are Customer Centric

We have high Moral Standards
We take Ownership
We are Pro-active
We collaborate

3.1.4- History of Soneri Bank:

Directors from international financial institution to open the market and involve the private
sector in the economy of the country got the leading investors from private sector and one of
them was the Rupali Group. This group belongs to Feerasta Family. This group started its
business before 1971 partition of East Pakistan and came to West Pakistan after 1971. SONERI
BANK LTD was incorporated on 28thSeptember 1991, the first branch in Lahore was opened on
16thApril 1992 and second branch in Karachi came into business on 9 thMay 1992. The head
office is in Lahore and the central office is in Karachi. The authorized and subscription capital is
Rs.300 million Out of which Rs.150 was million was distributed by Feerasta Family and Rs.150
million worth share was offer to general public. There was over subscription of 28 times more
than the number of shares offer for subscription and the over subscription NRPs was 3 times
more. The bank currently operates 256 branches, spread all over Pakistan including the Northern
Areas of the country. The banks expansion policy is based on the principle of maintaining a

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balance between the urban and rural areas. This created its own challenges and opportunities, and
forced them to evolve an outward-looking strategy in terms of their market emphasis. As a result,
Soneri Bank developed a geographically diversified assets base instead of a concentrated and
heavy reliance on business in the major commercial centers of Karachi and Lahore, where most
other banks have their operational Head Offices. Pleasant and sophisticated atmosphere has been
provided in the branches which carefully air conditioned and computerized. The bank after eight
months of functioning published its first Balance Sheet as on 31 st December, 1992 responding
with great satisfaction to the confidence reposed in it by its shareholders. Among the new banks,
Soneri is a front runner and continuous to make rapid strides in respect of deposits. The bank is
now in the process of consolidation with care and caution and steady growth on sound footings
with best possible services for its customers as the guiding principles .The Rupali Group has an
investment of more than Rs.10 billion in industrial sector other than SONERI BANK LTD

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3.1.5-Functions of Management in Soneri Bank:

With its growing market, Soneri Bank strictly follows the todays modern management tools to
reach its goals professionally and successfully. The basic principles and functions that are being
followed and implemented in Soneri Bank are discussed below;

3.1.5.1-Planning:
Planning is basically the strategy formed so that the organization can reach where it wants to and
accomplish its objectives. Planning involves deciding where to take a company and selecting
steps to get there. It first requires managers to be aware of challenges facing their businesses, and
it then it requires managers to forecast future business and economic conditions. They then
formulate objectives to reach by certain deadlines and decide on steps to reach them. They reevaluate their plans as conditions change and make adjustments as necessary. Planning helps
allocate resources and reduce waste as well.
The main purpose of planning is to minimize the risk as much as possible.
3.1.5.1.1-Planning Process:
There are six steps involved in the planning process;
1.
2.
3.
4.
5.
6.

State Organizational Objectives

List the alternate ways of reaching Objectives
Develop premises on which to base alternative.
Choose the best alternative for reaching objectives.
Develop plans to pursue the chosen alternatives.
Put the plan into action.

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State Objectives

Alternate ways of
reaching Objectives

Develop premises on
which alternates are
based

Choose best alternate

method to reach
objective

Develop plans to
pursue the chosen
alternatives.

Put the plan into

action.
CHAPTER

4:

Figure-1.4-The Planning Process

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3.1.5.1.2-Planning in Soneri Bank:

Planning in Soneri Bank is mostly done by the all the levels of mangers. The process of planning
in Soneri Bank is given below;

Top Level Managers:

Top Managers are basically CEOs, Presidents etc. They are basically responsible for making
organization wide decision and establishing goals and plans that affect the whole organization. In
Soneri Bank, Top Level Managers are mostly responsible for planning and setting Long Term
and Intermediate Term Objectives. In order to implement the plans, the final decision maker is
the Board of the Directors. The board is mostly not the part of Planning Process but in order to
put plans into action, its permission is required.
Mid Level Managers:
They are also called Middle Managers. They are Head of Departments, Regional Managers,
Project Leaders, and Plant Managers etc. They are acting as a Bridge between the Top Level
and Low Level Management.
In Soneri Bank, Mid Level Managers are mostly responsible for Short Term and Intermediate
Term planning process.
Low Level Managers:
Low Level Managers are Supervisors, Branch Managers etc. In Soneri Bank, they are sometime
also the part of planning process but their plans cannot be put into action because they are not
seeing the organization as a whole. They are only responsible for Short Term Planning because
their plans can affect them individually but cannot affect the whole organization mostly.

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Managers

Planning Process

Top Level Managers

Mid Level Managers
Low Level Managers

Long Term &

Intermediate Term
Planning/
Implement
Plans/Set goals
Intermediate
Planning

Short Term
Planning

Figure-1.5-Planning Process in Soneri Bank

3.1.5.2-Organizing:
Organizing comes after Planning. When you have defined your objective and set the goals, then
next most important step is to organize all your resources (Human, Monetary and Capital). It
basically creates a mechanism to put plans into action. Managers organize by bringing together
physical, human and financial resources to achieve objectives. They identify activities to be
accomplished, classify activities, assign activities to groups or individuals, create responsibility
and delegate authority. They then coordinate the relationships of responsibility and authority.

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3.1.5.2.1-Importance of Organizing:

The organizing function is very important part of the function of Management because it is the
primary mechanism Managers uses it to put plans into action. Organizing keeps all the
organizational resources together by indicating which resources are to be used for any specific
task and when to be used. Organizing helps the Managers to minimize the risk as well as
weakness whether internal or external.
3.1.5.2.2-The Organizing Process:

There are five main steps of organizing process given below;

1.
2.
3.
4.
5.

Reflect on Plans and Objectives

Establish Major Tasks
Divide Major Tasks into Sub Tasks
Allocate Resources and Directives for Sub Tasks
Evaluate the Results of Organizing Strategy

Figure-1.6- The Organizing Process

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3.1.5.2.3-Organizational Structure of Soneri Bank:

In Soneri Bank, all level managers are involved in organizing the organizational resources
including, Human, Monetary, Capital and Raw Material to reach the goals more effectively and
effectively. Soneri Bank is a corporation and due to its growing network, Soneri Bank organizes
all the resources in a systematic manner using the Modern Management Tools so that resources
are not wasted. Different level of Managers has different tasks assigned.
For example Branch Managers are given the task to organize the Low Level workers like
Assistant Managers, Cashiers, Customer Care Representatives and look after all the matters and
affairs of that particular branch. He is responsible only for that particular branch. He has nothing
to do with other branches. Similarly, the President has been given the task to lead the
organization by managing the whole organization, setting goals and plans and make necessary
decisions. The Organizational Structure of Soneri Bank is given below;

Figure-1.7-Organizational Structure
Board of Directors:

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Senior Management:

Corporate Information:
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3.1.5.2.3.1-Departments in Soneri Bank:

The list of departments in Soneri Bank is given below

Audit
Commercial and Retail Banking Group
Agriculture Credit Division
Bancassurance
Branch Banking
Consumer Finance Division
Group SME
Islamic Banking
Service Quality
Compliance
Corporate & Investment Banking
Credit
CAD
Credit Department
Credit Division
Legal Department
SAM Division
Finance
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Finance Control Unit

Finance Division
Finance Operations Unit
Financial Reporting Unit
MIS Unit
Reconciliation
Human Resources
Employee Relations
HR Operations
Recruitment
Training Department
IT
IT - Help Desk
IT - Infrastructure
IT - Operation
IT - Project Management Office
IT - RND
Marketing
Operations
Administration Department
Branch Operations
Centralized Operations
Security Department
Risk
Credit Risk Management Department
Market & Liquidity Risk Management Department
Operational Risks Management Department
Risk Analytics & Economic Capital
Treasury
Equity
Financial Institution
Forex
Money Market
PRI

Table-1.0-List of Departments

Highlighted in Grey are the main departments and those mentioned below are their sub
departments.
President
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Senior Executive Vice President

Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Officer Grade I
Officer Grade II
Officer Grade III

Table-2.0-Colour Scheme
People falling in Brackets of Green highlighted grades are considered to be top management
Yellow highlighted are considered to be middle level
And Officers grade are lower management or front line managers

3.1.5.2.4-Authority:
It is the right to command or perform in an organization.

Types of Authority:
1. Line Authority:
The right to give orders to sub ordinates and make decisions regarding Sales, HR etc.

2. Staff Authority:
The right to give advices and gide the subordinates when necessary.

3. Function Authority:
The right to command or perform in a group where it is nonexistent.

3.1.5.2.4.1-Authority in Soneri Bank:

There are two types of Authority that is being followed and implemented in Soneri Bank; The
Line Authority and The Staff Authority. All level of managers have the right to give orders and
make decisions and also guide their subordinates and advice when necessary. Function Authority
is strictly prohibited in Soneri Bank because managers start using it for wrong purpose and use

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their authority where it is nonexistent which leads towards anarchy. Everyone has to perform
according to his/her Job description.

3.1.5.2.5-Span Management:
Span of management refers to the number of subordinates that a manger can efficiently
manage. The total number of subordinates directly reporting to a manager is known as span.
The level of management also affects the span. Higher the level of management lesser
the number of subordinates as higher level management does not have much time to supervise.
They spend their most of time in planning and other functions. Lower level managers can have
wider span than the higher level managers.

3.1.5.2.5.1-Span Management in Soneri Bank:

There is a tall span of Management in a Soneri Bank at Top and Middle level of Management
which means the top level managers and the low level managers have fewer subordinates to
organize and control. But at Lower Level of Management, the span of Management is Flat,
which means that they have to organize and control maximum subordinates. For example; A
Branch Manager has to take care of each and every sub ordinate; Assistant Manager, Cashier,
Accountant, Customer Support Officer, Guards etc.

3.1.5.3-Influencing:
Influencing involves leading, directing and motivating the employees within the organization to
do their tasks more professionally. Company objectives cannot be achieved if the manager
doesnt provide direction; however, if you havent planned or organized you will not succeed

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with this function. Direction and motivation are the key factors in directing. A clear plan that is
organized and dispersed to employees is what employees are seeking. A manager will find
themselves to be an effective leader if their workers understand what is required of them and
why.

3.1.5.3.1. Influencing Process:

Influencing involves six main activities;

1.
2.
3.
4.
5.
6.

Leading
Motivating
Considering groups
Communicating
Encouraging Creativity and Innovation
Building Corporate Culture

3.1.5.3.1-Influencing in Soneri Bank:

As a corporate organization, Soneri Bank believes in leading, directing and motivating the
employees so that every employee may give his performance more than beyond. All level of
managers are responsible to lead and motivate their workers and build the professional work
environment to let everyone work. The Top Level and Mid Level Mangers are expected to be
creative and innovators. Soneri Bank also believes in Henry Gantts Reward Theory to
motivate the workers. There are two annual Bonuses for every employee of the Bank. But an
extra bonus is also given to those who perform very well beyond the imagination.

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3.1.5.4-Controlling:
Controlling is a function of management that involves measuring achievement against
established objectives and goals. It also requires managers to be able to identify sources of
deviation from successful accomplishment and to provide a corrective course of action.
Managers first establish objectives and goals, then measure achievement of them, identify
anything that is keeping the company from achieving them, and provide means of correction if
necessary. Controlling does not necessarily involve achieving only monetary goals and
objectives. It can also relate to no tangible goals and objectives like meeting a production quota
or reducing customer complaints by a certain amount.

3.1.5.4.1-The Controlling Process:

There are three main steps involved in Controlling Process;

1. Measuring Performance
2. Comparing Measured Performance to Standards
3. Taking Corrective Action
3.1.5.4.2-The Controlling Process in Soneri Bank:

The Controlling Process is also one of the important functions of the Function of Management.
All level of managers are supposed to be the part of this process. The Top Level Management is
responsible for taking necessary decisions on the available information. The Mid level
Management is also responsible for taking necessary decisions but they are also responsible for
controlling process, measuring performance etc. The Lower Level Management is responsible
for measuring the performance and forwarding it to the Top and Mid Level Management.
For Example: The Heads of Account Departments are responsible for controlling the cost. The
Head of Finance Departments are responsible for measuring the performance (Budgeting,
Forecasting), comparing the performance with the standards and take necessary actions or
forecast the information regarding sales etc.

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3.1.5.5-Decision Making:

Decision is a choice made between two or more available alternatives. Decision making is the
process of choosing the best alternative for reaching objectives. Decision making is mostly done
in Planning and Controlling process but managers also have to make decisions in Organizing and
Influencing.

Figure-1.8-Decision Making Process

Types of Decisions:
1. Programmed: Routine, Repetitive Decisions
2. Unprogrammed: One shot, ill structured.
3.1.5.5.1-Importance of Decision Making:

Managers have to take different types of decisions within the organization in the interest of the
individuals as well as the organization at different levels.
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For Example: To manufacture a new plant, the Top Level Managers are involved and
responsible. The process of decision making is based on two factors; the scope the decision and
the levels of management. The scope of the decision is the proportion of the total management
system that the decision will affect.

Figure-1.9-Level of Management Vs Scope of Decision

3.1.5.5.2-Decision Making in Soneri Bank:

Decision making process plays an important part in every organization when putting plans into
action to reach the organizational goals resourcefully.

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Soneri Bank being a Modern Organization believes that every member who is the part of
decision making process should participate in decision making. For that, mostly, Electronic
Brainstorming Technique is used.
Brainstorming Technique: Brainstorming is basically a group discussion in which negative
feedback on suggested alternative by any group member is forbidden until member has presented
alternatives. After the discussion, the best alternative is selected. Whether it is the Top Level
Management or the Mid Level management or the Lower Level Management, every level
follows the brain storming technique because it involves the every member to be the part of
decision making process.
Electronic Brainstorming Technique:

Managers

Decision Scope
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Top Level Managers

Mid Level Managers
Low Level Managers

Long Term
Objectives/ Broad
Decision
Scope/CSR
Intermediate
Scope/Long Term,
Short Term
Objectives
Narrow
Scope/Short Term

Figure-2.0- Mangers Vs Decision Scope

3.1.5.5-Corporate Social Responsibility (CSR):

Corporate Social Responsibility is basically social responsibility of the organization towards
society. It is defined as the managerial obligation to take action that protects and improves both
the welfare of society as a whole and interests of the organization.
Being a corporate organization, Soneri Bank believes in social responsibility towards the society
by the organization.

3.1.5.5.5.1 CSR Activities Performed by Soneri Bank:

Support for Various Causes

Soneri Bank has reflected its new brand promise of Roshan Har Qadam, in various diverse
CSR initiatives, investing in communities, education, health and youth activities. With our vision
to empower the society to grow, we have honored a number of humanitarian activities in 2013
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that would nurture and strengthen our relationships in our businesses, and with the community,
government and our customers. It would help to eradicate poverty, enable improvement &
sustainability in the lives of millions of people. Soneri Bank played a pivotal role with regards to
socio-economic development in areas of womens empowerment, health & education (basic,
technical and vocational).
The Agha Khan University:
Soneri Banks generous commitment to Neo-natal Intensive Care Unit (NICU) & Pediatric
Intensive Care Unit (PICU) will be disseminated to the expansion plans of both the units over a
period of three years. The Agha Khan University Hospital provides the best and most
comprehensive medical care in Pakistan. All facilities and treatments are accessible to every
citizen in the country, irrespective of their financial status. With this philanthropic approach,
Soneri Bank plays an integral role in uplifting the socio-economic dynamics of the country and
facilitating the expansion plans of the institution.
Pakistan Centre for Philanthropy and other bodies (AKU):
Soneri Bank supported a research study of Indigenous Individual Philanthropy in Pakistan,
designed to update the findings of a research on individual philanthropy conducted by the Agha
Khan development Network. This would enhance the social development objectives by
promoting the creation of more social assets through enhanced charitable giving, and would
supplement the governments development efforts. In time, it would reduce the burden of poverty
via introduction of more schools, clinics and training institutes. Soneri Bank, with its generous
contribution would play an integral part in mobilizing Corporate Philanthropy and in formulation
of enabling policy and administrative environment for enhancing the volume and effectiveness of
philanthropy for social development. Soneri Bank has further contributed to The Patients
Behbud Society for AKU and encouraged Zakat donation to the institutions via its branches in
terms of their campaign dissemination. In areas of mentorship, Agha Khan Youth of National
Youth Camps was supported encouraging leadership skills, entrepreneurship, career
development, volunteerism, ethics and diversity.
Shaukat Khanum Memorial Cancer Hospital and Research Centre:
A sponsorship was given for the treatment of poor cancer patients at a state-of-art cancer centre
of Pakistan that has been providing financially supported treatment to over 75% of its patients
for the last 17 years.
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Development in Literacy (DIL):

A sponsorship for establishing a school in Korangi was given to improve the dismal state of
education in Pakistans underdeveloped areas. DIL establishes, adopts and manages primary and
secondary schools for underprivileged children in partnership with non-governmental
organizations in Pakistan.
Promoting Arts & Culture:
Soneri Bank packaged and sponsored a selection of Pakistani Classical, Folk and Sufi music,
developed by Tehzeeb Foundation working for the advancement and promotion of music,
literature and fine arts in Pakistan, along with preservation and archiving of Classical music of
the sub-continent.

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CHAPTER 4:
GANTT CHART

4.0-Gantt Chart:
Gantt Chart is a scheduling tool used today and it was given by Henry Gantt. The
purpose of using Gantt Chart was to use
Full:

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Activities:

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Bars:

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CHAPTER 5:
ECONOMIC ANALYSIS

5.0-Economic Analysis:
Soneri Bank was established in the year 1992. Soneri Bank has a unique market position in
trade-finance and transactions banking services, and boasts a loyal and satisfied client-base in
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all its 256 branches all over the country. The Bank is committed to meet the increasing
expectations of its customers and continue to provide them par-excellence services, for which
the Bank has been investing prudently in information technology, human resources, marketing
and infrastructure.

Soneri Bank Limited posted a pre-tax profit of Rs.1.75 billion for the nine months ended 30
September 2014. The Board in its 139 th meeting held on 23 October 2014, approved the Banks
third quarterly financial statements. On this occasion, the Chairman, Mr. Alauddin Feerasta
appreciated the Banks continued positive performance during the third quarter and expressed
satisfaction on the overall scale of growth.

During the period, Banks total revenue amounted to Rs.6.56 billion, which is up by 22.13%
from the last years comparative figure of Rs.5.37 billion. The deposits momentum continued,
registering growth of 7.00% over 2013, to close at Rs.150.43 billion (December 2013: Rs.140.58
billion).

5.1-Rating of SONERI BANK:

Rating Agency : The Pakistan Credit Rating Agency (PACRA)

Ratings : Long term : "AA-" (Double A minus);

Short Term : "A1+" (A one plus);

These ratings denote a very low expectation of credit risk emanating from a very strong capacity
for timely payment of financial commitments.

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Rating Update : June 26, 2013

Rating Action: Maintained
PACRA Website: www.pacra.com.pk

5.2-Graphical Information:

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CHAPTER 6:
CONCLUSION

6.0-Conclusion:
We started off the project with aim to accomplish the simple looking task of establishing a report
on SONERI BANK LTD. But with time and experiences it was learnt that this was not at all an
easy task, especially collecting the information and then analyzing the economical information as
compare to other organizations in the banking sector.
Though we are able to achieve all the goals of our project but still we think that lots of
advancement can be done on this project. We have provided the platform and the platform is
ready for everyone to work on it. For advancements, we need more time, money and hard work

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to understand the principles of management, skills of management, functions of management and

the responsibility of SONERI BANK as an organization towards the society.

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CHAPTER 7:
FUTURE RECOOMENDATIONS

7.0-Future Recommendations:
After briefly observing and detailing the project, still it has many future advancement
possibilities of which are stated as below:
1. If Davis Model of Corporate Social Responsibility is implemented, Organization could
get the more good results than now.
2. In banking sector, HBL, Bank Al Habib, MCB, Standard Chartered are considered to be
the banks that have strong image and have more clients whether corporate or individuals.
To change the perception of the clients of these banks so that they should give more value
to Soneri Bank, steps should be taken in the fields of Customer Support and Marketing.
3. The management of SONERI BANK still relies on Brainstorming Technique in Decision
Making Process. They should go for modern decision making techniques as well like
Delphie Technique and Nominal Group Discussion Techniques.
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4. Lower Level Management is not involved when planning Long Term Objectives. They
should also be involved so that their scope would be broader so that they would also start
taking organization as whole which would not only affect them but the whole
organization.

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CHAPTER 8:
REFERENCES

8.0-Refrences:
8.1-WEB Refrences:
[1] PEARSON HIGHER EDUCATION
Title: Modern Management | Visiting Date: 02/OCT/2014
2014 Pearson Education Inc | Updated: OCT 2, 2014 - 16:10

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http://www.prenhall.com/certotour/Certo_CH01.pdf

[2] WIKIPEDIA
Title: Management | Visiting Date: 17/OCT/2014
2005-2009 Wikipedia Foundation Inc | Updated: March 2, 2009 - 23:10
http://en.wikipedia.org/wiki/Management

[3] SONERI BANK LTD

Title: Management | Visiting Date: 03/NOV/2014
2012 Soneri Bank LTD | Updated: 01 NOV, 2014 17:00
http://www.soneribank.com/home

8.2-Book References:
[1] MODERN MANAGEMENT BY CERTO 12th EDITION

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