A Company Interview

Presented to
E.T Yuchengco School of Business Management
Mapua Institute of Technology
Makati City

In Partial Fulfillment
Of the Course Requirements for
MGT-141 (Human Behavior in Organization)

Submitted by:
AFSAR, Romhar Khan
FORBILE, Jan Enrique D.
RAMOS, Kenneth Paul T.
TACDERAS, Janica M.

Submitted to:
Prof. John Ray Acopio

March 2017
 TABLE OF CONTENTS

I. Title Page 1
II. Table of Contents 2
III. Brief description of the Company
Nature of Industry 3
Market needs that are being satisfied by the products 3
The typical product lines that are serving the market 3
Drivers for growth or the opportunity areas in this industry 7
Threats to the industrys viability 8
Estimated market size of the industry 8
Growth Rate 8
IV. Company Analysis
Strategy 9
Structure 9
Human-resource related activities 10
Job satisfaction 10
Values 11
Decision-making 11
Motivation 11
Leadership style 12
Communication patterns 12
Recommendations 13
Documentation 14

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 BRIEF DESCRIPTION OF THE COMPANY

I. NATURE OF THE INDSUTRY

Philippine National Bank (PNB) is one of the countrys largest private local
commercial banks in terms of assets and deposits. It is a universal bank providing a full range
of banking and other financial services to large corporate, middle market, small and medium
enterprises (SMEs) and retail customers. It maintains significant account relationships as well
with the Philippine Government, national government agencies, local government units, and
government owned and controlled corporations (GOCCs).

II. MARKET NEEDS THAT ARE BEING SATISFIED BY THE PRODUCTS

PNBs principal commercial banking activities include deposit-taking, lending, bills

discounting, trade finance, foreign exchange dealings, fund transfers/remittance servicing, a
full range of retail banking and trust services, and treasury operations. The Bank engages in a
number of diversified financial and related businesses such as remittance servicing in the
United States, Hong Kong, Guam, Italy, Canada, France and the Middle East; full service
banking in the United Kingdom, Hong Kong, and Japan; mortgage lending, trade and treasury,
among others.

III. THE TYPICAL PRODUCT LINES THAT ARE SERVING THE MARKET
The Philippine National Bank offers a wide range of products and services, making
banking transactions with ease.

PERSONAL BANKING
In terms of Deposit Accounts:
1. Peso Savings
o PNB SUPERTELLER ATM: A savings account which has a PIN-based
ATM Card. The card can be utilized for different bank exchanges inside the
Philippines.
o PNB Debit MasterCard: A PIN-based ATM Card which gives day in and
day out banking expedience utilizing different channels. The card can be
utilized over the globe wherever MasterCard and Maestro is acknowledged.
o PNB TAP MasterCard: a creative, secure and helpful technique for
obtaining things by just tapping the ATM card at any PayPass empowered
machine. You have the power to speed past clerk lines without the bother of
counting coins and bills, entering PINs or marking sales slips.
o PNB Passbook Savings: An interest-bearing deposit account wherein
exchanges are recorded in a passbook.
o SSS Pensioners Account: Secure and get your SSS pension reliably on a
month to month premise through your PNB ATM account and make the
most of its advantages at whatever time you require it.
o PNB Direct Deposit Program: A service wherein the pension/benefit
payments of the retired people/recipients of the US Federal Agencies are

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 specifically credited to their records kept up with any PNB residential
branch across the country. Accessible in Peso or Dollar currency.
o PNB Prime Savings Account: A bank account that permits customers to
appreciate higher interest rates on a tiered premise. Customers can deposit
at whatever time and are permitted to withdraw a maximum of 2
withdrawals for every month without acquiring service charges. It is proved
by a specially designed passbook.
2. Peso Checking
o Regular Checking Account: This is a non-interest earning checking
account and is withdrawable by checks. Month to month articulation of
record is given to customers.
o Budget Checking Account: Utilize this checking account for restricted
check issuances to augment your cash's potential. Take advantage of the
low maintaining balance so you can free up your assets for other interest-
earning or high return investments.
o PNBig Checking Account: An advantage from an interest-bearing
checking accounts that offers you accommodation in dealing with your
funds while having the earning power of a savings account.
o Priority One Cheking Account: interest earning, free personalized
checkbook and free MasterCard ATM card
o PNB Combo Checking Account: Permits the synchronous opening and
connecting of a checking account and a passbook account. It has a
provision for the automatic exchange of funds from the savings account to
the checking account to cover the checks issued.
3. Foreign Currency
o PNB Dollar Savings Account: An interest-bearing dollar deposit account
wherein exchanges are recorded in a passbook.
o PNB Greencheck: A non-interest earning dollar checking deposit account
that works just like a US-based checking account.
o PNB Euro Savings Account: A passbook-based, Euro-denominated
savings account that yields interest.
o PNB Renminbi Savings Account: A passbook-based, Renminbi-
denominated savings account that gains interest.

In terms of Insurance Products

1. Non-life insurance
PNB BancAssurance gives strong financial related services to help guarantee
and secure your future. PNB BancAssurance offers insurance products you can
rely on.
o Auto Protector Plan: Help secure your car from any incidental harm and
other everyday dangers.
o House Protector Plan: Help secure your home against flame, burglary and
different fortuitous occasions.

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 o 6-in-1 Family Accident Protector Plan: Help ensure you and your
familys safety 24 hours a day, 365 days a year, anyplace on the planet.
o ATMSafe: Help secure your well-deserved cash withdrawn back through
any ATM that acknowledges PNB Cards. Life insurance
2. Life insurance product provider of PNB Bancassurance is PNB Life
Insurance, Inc. a subsidiary of Allied Banking Corporation and an affiliate of
Philippine National Bank.
In terms of Loans
o Sure Home Housing Loan: In case you're wanting to assemble your
fantasy home, then PNB Sure Home's low loan costs and adaptable
installment terms is the item for you.
o Sure Home's Home Flexi Loan: Finance your asset acquisition and other
individual related consumptions obtained against qualified/adequate private
land properties.
o Sure Wheels Auto Loan: PNB Sure Wheels is the certain approach to
manage the cost of your fresh new auto.
In terms of Credit cards
1. PNB MasterCard
2. PNB Essentials MasterCard
3. PNB-PAL Mabuhay Miles World MasterCard
4. PNB-PAL Mabuhay Miles Platinum MasterCard
5. PNB Visa
6. PNB UnionPay
In terms of e-Banking Services
o Personal Internet Banking: Take control of your money transactions
without going to the bank
o Mobile Banking App: Do your banking agendas wherever and whenever.
o Phone Banking: Banking is just one call away.
o Automated Teller Machine: Get access to your money anytime.

CORPORATE BANKING
In terms of Corporate Cash Management
1. Account Management: You can compose your deposit accounts by
gathering together accounts utilized as a part of comparative items,
modules or usefulness in the framework.
2. Liquidity Management: By distinguishing the parent account and the
satellite record among your enlisted account numbers, you can program
directions to computerize the exchange of assets between your records.
PNB C@shNet will consequently do the exchange in view of your
directions.
3. Payments Management: PNB Payments Management brags a breadth of
payment administrations that will help your workload and accelerate your
pay-out processes.They help you channel your assets and center your
attention regarding exercises that will specifically enhance your main
concern and accomplish your business objectives.
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 4. Collections Management: Make your collection activities simple and
proficient utilizing our PDC Online, Automatic Debit Arrangement,
Electronic Presentment and Payment, eCollect, and Cash Mover services.
PNB will help you in care and observing your post-dated checks, gather
your receivables, either by our numerous channels or by charging your
client's records and attributing proceeds to your record in addition to, we
will rearrange and automate the charging/invoicing exercises of your
collection procedure.
5. Utilities: (Upload Facility) Conveniently send your payments or collection
directions through document transfer.
6. PNB C@shNet Security: accompanies a solid framework security shell
and a viable choice to control the access to different operations of the
framework with fine granularity. Its safety effort controls access to
information, manages basic leadership powers, implements responsibility,
guarantees precision and unwavering quality of information, and prevents
unapproved alteration of information.
In terms of Business Loans
1. Term Loans
2. Specialized Lending Programs
3. Credit Lines
4. Trade Services and Finance
5. Sugar Loans Program
6. Loans to LGU
7. Small Business Loan Program
In terms of Foreign Exchange
o We purchase and offer outside monetary forms against the Philippine Peso,
or against some other remote cash. PNB appreciates great associations with
different banks, which permits us to purchase or offer vast volumes of
monetary standards at market costs, and give you top rates for your money.
In terms of Corporate Trust Services
1. Custodianship
2. Escrow
3. Mortgage Trust Indenture
4. Securitization
5. Bond Flotation
6. Employee Benefit Trust
In terms of Global Trade Center
o Secure your export and import prerequisites, when you need it. PNB
provides assistance to clients regarding their international trade needs - from
letters of credit and documentary collections to trade finance (export and
import) and foreign exchange requirements. At the same time, we keep
clients informed on international procedures as well as local regulatory
requirements. With our competent products and services, we guarantee
seamless result delivery whenever needed.

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 INVESTMENT OPPORTUNITIES
o Dollar-denominated Republic of the Philippines (ROP) and Philippine
Corporate Bonds: Invest in debt securities issued by the Philippine
government, or enormous organizations, and earn.
o Peso Treasury Bills (T-Bills): You can purchase these here and now (up to 1
year) debt securities issued by the Philippine government and earn interest
on a marked down premise.
o Peso Treasury Bonds: You can purchase these medium to long-term bonds
and gain normal coupon (interest) each quarter or semester.
o Wealth Multiplier: Keep your cash in this interest-earning special account,
where the month to month premium is saved to a bank account.
o PNBig Savings Account: This is a special savings account that lets you
earn interest today on the interest you earned yesterday.
o Unit Investment Trust Fund (UITF): Appreciate the colossal advantages
of investing into a pooled fund with our extensive variety of venture reserve
answers for you.
o Personal Trust Account: On the off chance that you might want to set aside
cash/reserve for the eventual fate of your kids or other recipients, but you
don't know how to make the deposit develop, then we can help set it up and
oversee it for you.
o Investment Management Account: We offer proficient fund management
for people and partnerships who/which don't have time nor the skill to deal
with their assets. Our accomplished portfolio director will plan a particular
investment portfolio and technique for you to help you accomplish your
money related objectives and targets.
o Wealth Management: This is an advisory/consultancy program that gives
you an extensive way to deal with financial planning and management. This
service is intended to consider you and your family's financial necessities,
for example, improvement, security and conveyance of wealth to your
beneficiary
o Estate Planning: We will exhort you on the best way to deal with your
funds and business undertakings so you and your friends and family can live
in comfort and security.

IV. DRIVERS FOR GROWTH OR THE OPPORTUNITY AREAS IN THIS

INDUSTRY

The Philippine National Bank, the country's global bank with a solid record of
stability and success, offers you various opportunities to grow in a career of your choice - in
account management, marketing, branch banking, information technology, and treasury or in
other facets of banking. In addition, Sir Bong Austero stated that forty percent of Filipinos
dont have bank accounts, if these people were to have bank accounts, from PNB, then this
may lead to increased profit for the bank.

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 Other than the forty percent of Filipinos that dont have accounts, there is also an
opportunity area on Technology because, like most banks, PNB rely on Technology for their
operations, as such more advanced technology equals higher efficiency, which is what PNB
want because their main focus is to be more efficient and to have minimized cost.

V. THREATS TO THE INDUSTRYS VIABILITY

Like most banks, Philippine National Bank (PNB) rely on technology to accommodate
the market and its needs and wants like ATMs, Online Banking, and the like, as such, the most
major threat to these industries who rely on technology for their operations are hackers.
Because they are a bank who rely on the trust of the people to continue their operations, being
hacked damages the reputation of the bank, therefore will lose the trust of people and will then
lead to the discontinuance of the operations.

VI. ESTIMATED MARKET SIZE OF THE INDUSTRY

The Philippine National Bank (PNB) is a global bank, meaning they have several other
branches all over the world, such as China, Europe, and the like, as such having several
branches all over the world means their market size are expected to be in a large amount.
According to Sir Austero, the Senior Vice President of the Human Relations Department, the
banks estimated market size is three (3) trillion, which is understandable because as said,
before, having other branches will lead to increased market size.

VII. GROWTH RATE

The Philippine National Bank (PNB) registered a net income of P5.7 billion for the
first nine months of 2016, 21% higher compared to earnings of P4.7 billion for the same
period last year. The Bank's core revenues continued to grow as net interest income increased
by 13% to P14.5 billion, contributing to two-thirds of total operating income. Despite the
drop-in yield rates of the Bank's earning assets, net interest margin held steady at 3.1%,
supported by the 12% growth in low cost deposits which comprised more than half of total
deposits. Likewise, the Banks loans-to-deposits ratio stood at70%, reflecting the Banks
continued focus on the efficient deployment of funds to generate a more stable stream of
income.
The Banks strong performance for the nine-month period was also attributed to the
double-digit growth in its non-interest income. Trading and foreign exchange gains registered
an 84% increase year-on-year, benefiting from favorable market conditions. With the Banks
sustained efforts to reduce non-earning assets, net gains from sale of foreclosed assets also
grew significantly. Higher miscellaneous income continued to augment the Banks revenues
primarily from the collection of non-performing loans and a one-time gain from the sale of the
Banks 51% stake in its life insurance subsidiary.

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 COMPANY ANALYSIS

A. STRATEGY

Mission Statement
We are a leading, dynamic Filipino financial services group with a global presence
committed to delivering a whole range of quality products and services that will create value
and enrich the lives of our customers, employees, shareholders and the communities we serve.
Vision 2010 and Beyond
To be the most admired financial services organization in the country in terms of:
Financial Performance: rank #1 or #2 in its businesses in terms of return on equity
Innovativeness: in products, services, distribution and the use of cutting-edge technology
Customer Perception: the preferred financial services provided and the customer-centered
organization with a passion for service excellence
Social Responsibility: the employer of choice, a good corporate citizen and partner in nation
building
Long-term vision : developing competitive advantage on a sustained basis by anticipating
changes in customers preferences and in the manner of doing business.
PNBS mission and vision are revisited each year during the strategic planning process to
ensure that the companys annual strategies are aligned with the organizations mission and
vision. When it comes to the companys business model, they currently use a hybrid model,
which is a growth model, for the reason that the company is continuously growing. Recently
they merged with Allied Banks to achieve more growth for the company. They are also
incorporating a cost minimization strategy, because the banking industry need to be lean and
agile. They also guarantee that their employees are well aware of their mission and vision by
embedding it in their training programs. Also through their communication programs, such as
town hall meetings and everyday morning huddles, they impart the companys mission and
vision to their employees.

B. STRUCTURE

PNB is both functional and geographical in terms of structure. It is functional here in the
Philippines because the nature of their business is retail banking, but it is also geographical
since it operates globally, in such places like Europe, Asia Pacific and the United States.
Having different type of business needs and business laws, PNB has to perform both,
functional and geographical. The basis for the companys structure is that they need to execute
through their global branches, establishing their image through geographical business model,
and establishing a client-specific structure encompassing institutional, retail and consumer
environment through being a functional model.
In terms of work specialization, the company is highly specialized. They are also
departmentalized according to function. While for the companys chain of command, it is
highly observed and those who have authority in the company are clearly defined. Their span
of control is a maximum of 8 and a minimum of 4 and 5. In terms of centralization, some

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groups are highly centralized because they are a highly-regulated industry, given the fact that
the Bangko Sentral ng Pilipnas (BSP) regulates banking. For formalization, because the
companys sole duty is to handle the money of the public, they need formalized policy for
everything,
Primarily, competition with other top banking institutions and as well as the company
satisfying essential business needs, also serves as a basis for such structures that the company
is using. Sir Bong Austero emphasized that form follows functions when it comes to business,
and that it is a must to align the structure of the company with its basic strategies, because it
serves as a mechanism to deliver business objectives.

C. HUMAN RESOURCES RELATED ACTIVITIES

The PNB implements all sorts of human-resource related activities like training,
organizational development, talent acquisition, rewards management, employee service and
industrial relations, representing a full human resource function. In terms of the companys
employee salary and benefits scheme, they have a competitive scheme which includes
benchmarking globally, nationally and regionally. Compared to others, they are known for
having a broad-band salary structure. For their employees training and development, they
follow a competency map for it, a combination of technical, behavioral, leadership and
management training programs. They actually have their flagship development program
which is called the JEDI (Junior Executive Development Institute) Program. They gather high
potential graduates and put them in a classroom for 7 months, combined with on-the-job
training, making them assistant managers after just few months of being in the program,
which usually takes 8 years for regular potentials to become an assistant manager. For the
companys career development, they keep track of it through performance appraisal and
development system. People are assessed by their readiness, whether they are ready to get into
the next position or ready for promotion, after this they also provide succession management
programs to maintain career success.

D. JOB SATISFACTION

Based on the interview we conducted with the Senior Vice President of the H.R.
department of Philippine National Bank (PNB), Mr. Bong Austero, he stated that job
satisfaction is fairly high in the company as evidenced by the companys estimated turnover
rate of 8.2% which is fairly lower than the industrys average of 10%. The most common
reasons for turnovers are competition, which are the rival banks who offer higher salaries to
the workers of PNB, thus urging them to transfer, and the second reason is migration to other
countries opting for better opportunities and better lifestyles.
PNBs structure promotes professional growth. As to what Mr. Austero said, the PNB
is an all structured and as much as possible, they want to move people up to the organization.
They asses job satisfaction among the employees through engagement survey which measures
job satisfaction, organizational commitment, organizational trust and many other variables
which is being conducted every two years. PNB currently has 8.75% engagement rating.
Regarding with the employees who complain with work, salary and benefits is that they have
the Performance Appraisal Management System where is not only a survey but also a personal
conversation between employees and the supervisor in which they discuss the problematic

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aspects of their jobs. The PNB also gives rewards or merits to the employees whose work
performance is better than most employees, thus he or she will be given a performance bonus
or recognition depending on the management. Unlike, most companies who offer 13-month
pays, PNB guarantees that they can reach up to 16-months, but it only depends on your
performance in the workplace. The outstanding managers will be given promotions and the
most coveted award is service excellence award which are given quarterly.

E. VALUES

Philippine National Bank (PNB) has core values that governs the company itself.
Those values are: (1) Service Orientation which the PNB is committed to deliver possible
service to their clients, (2) Trustworthiness which they hold consistent adherence to a strict
moral and ethical code, (3) Adaptive to Change which they nurture positive attitudes towards
change and promoting flexibility, (4) Team Orientation which they are committed to work
together as a family united in pursuit of common goals, (5) Commitment which they manifest
genuine concern and affection for the bank, and lastly (6) Pride which they take pride in
working with the bank in whatever task they undertake. Among these core values,
Trustworthiness is the considered to be the most important value in the company, as Mr.
Austero said, trustworthiness is a threshold competency in the bank. In the recruitment
process, trustworthiness is the first dimension they would want to look at the individual. If an
individual fails their honesty test then you are not good or allowed in the company because
honesty very critical especially in a bank who manages the peoples money.

F. DECISION-MAKING

Based on the interview conducted, Mr. Austero stated that decision making in the
company have year limits based on the policy of the company, in addition, the company has a
Manual Signing of Authority (MSA) which clearly specifies the decision-making power of
each level or department in the organization, for example only people who are competent
enough are capable of high job positions such as managers, senior managers, assistant
managers and the people under them must follow their orders because of the policy of the
company.

G. MOTIVATION

If, for an instance, there was a certain employee who is demotivated to work, who may
come late or his work performance is diminishing or getting sluggish because of his low
motivation, the Philippine National Bank (PNB) Management implements the following:
engagement programs in which there are interest clubs, in which these informal groups
revolves around one common interest or activity of choice, such as dancing, playing
badminton, choirs, and the like. Apart from the interest clubs, PNB also has a mentoring
program in which those people who have high potential in the future, then these people will be
given a mentor, probably coming from PNB to provide insights to these people of their career
paths or their career decisions. The reward system of PNB can also be used to motivate the
employees because the reward system focuses on those who work better than most of the
employees and a better work performance will lead to additional bonuses, as such this system

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can be used to make the workplace competitive and strive to work harder and more efficiently.
The management also strives to motivate the employees intrinsically because you will be
more productive if youre intrinsically motivated than extrinsically motivated, and they try to
intrinsically motivate employees by having a Leave program in which you will help people
who need assistance like disaster aid and the such, and extrinsic motivation comes from the
pay, the insurances, and the like.
Among the theories of motivation, we can attribute the programs that PNB implements
to the Equity Theory because of their reward system that it is only fair that you get additional
incentives only if you work hard on your job and you get recognized by your supervisors. We
can also attribute it to the Expectancy Theory because of the expectations of the employees
who work hard will expect that they will gain something from it, usually bonuses. According
to Mr. Austero, management also wants to believe that they are achieving Maslows Needs
Hierarchy Model because of Physiological Needs of the salaries of the employees, health
insurances for ill employees satisfies Safety Needs, Social Needs are satisfied by the interest
groups and the higher growth needs which are Self-Esteem and Self-Actualization are
satisfied by the mentoring programs, training programs, and the like.

H. LEADERSHIP STYLE

Based on the interview we conducted, we have noticed that the leadership style of
Philippine National Bank (PNB) follows the Path-Goal Theory. This theory states that
effective leaders clarify the paths (behaviors) that will lead to desired rewards (goals). The
company, as our interviewee (Mr. Bong Austero) stated, gives out instructions and tasks for
each department head and each of the department head delegates it to their subordinates to
achieve this task. We have also noticed that the company possesses Directive Leadership
because the need to follow the instructions of the managers is critical for a bank who is a
global bank.
If the type of leadership is Directive Leadership, then it also follows transactional
leadership that states that this type of leadership involves routine, regimented activities like
assigning work, evaluating performance, making decision, etc. because of the high regulation
of the company.

I. COMMUNICATION PATTERNS

Philippine National Bank (PNB) has been using the chain network way of
communication, in which the information will go through a senior manager then to a manager
then to an assistant manager all the way to the employees. PNB has been using this type of
communication network because the company is a global bank, there are many employees in
different countries, it is impossible for a wheel network because of its inefficiency.
In addition, although they rely on technology in doing their operations, they primarily
use written or personal communication when reminding of this event, but if they need just to
inform everyone in a quick way, they use e-mail, however there are also problems when using
these methods because if it is written, they may disregard it, if it is personal communication,
the receiver of the message may not really retain their attention to the speaker, and lastly e-
mail is not that reliable because an employee has a possibility to not check their mail and will
not be informed of the reminder.

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RECOMMENDATIONS
Banks are the most important link in the economy as it serves as the tie up of surplus
and deficit economic factors that lead to the growth of the country. For over 100 years to date,
Philippine National Bank has blossomed into one of the leading private local commercial
banks. The focus has evolved over time and it should be noted that the manner of tackling
business should go along with the calendar. Living alongside members of the Y-Z generation,
it is a proven presumption that technology has made the impossible, possible, a downside
doubling as a threat to the security of e-banking, credit lines and checking accounts. To lure in
the trust of customers, a well implemented security plan for the aforementioned modes of
banking will have high potential on solving one of the problems that hinders the customers
from the supposedly convenient services. To obliterate the ramification of such problems, it is
best advised to get on with time as it serves as the best basis of the needs of both the company
and its consumers.

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DOCUMENTATION

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At the entrance of Philippine National Bank (PNB)

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With the Senior Vice President, Human Resource Group of Philippine National Bank
MR. SCHUBERT CAESAR C. AUSTERO

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Philippine National Banks (PNB) tagline: You first.

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