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Internship Report

M.B.A (HRM)

Submitted By

Department of Business Administration Allama Iqbal Open University Islamabad

ALLAH
The most beneficent, the most merciful
And we split the earth in fragment and produce there corn, and grapes, and nutritious plants and lives and death and enclosed garden dense with lofty trees and fruity and fodder, for use and convenience to you and your cattle.
(Al - Quran - Ul - Hakeem)

DEDICATION
TO MY BELOVED

PARENTS

Who always wishing and praying for My success in every sphere of life I pray to Almighty Allah to enable me to serve them so well and kindly as they did In my life especially in my childhood Aamin!

PREFACE

In Masters of Business Administration, Internship Program is an important part to give students an opportunity to have experience of practical field. Unless and until the students experience the novelty of practical work, their knowledge of what they study in theoretical courses remains incomplete. The most important point in an Internship Program is that the student should spend their time in a true manner and with the spirit to learn practical orientation of theoretical study framework.

This internship report is on my eight weeks practical training at The Bank of Punjab Abdul Hakim Branch. In this internship report I have tried to give details about the The Bank of Punjab, working and the functions of different departments of the bank.

ACKNOWLEDGEMENT First of all, I thank my all respected teachers for providing me comprehensive knowledge about Business Administration Courses and also for providing me the opportunity to complete my internship program in The Bank of Punjab to enhance my practical knowledge about banking sector of Pakistan. I am highly thankful to the staff members of The Bank of Punjab. Who really cooperated with me and provide me their complete guidance. As banks are very much sensitive about their secrecy, even then after taking an understanding, they let me handle their delicate operations. My special thanks to the incharge of internship and placement who arranged internship and provided me with his kind guidance at each and every step whenever I felt difficulty and he made me capable of making financial analysis of financial statements of this organization.

_____________________

Muhammad Iqbal

EXECUTIVE SUMMARY

The Bank of Punjab is the leading organization in the banking sector. The bank of Punjab is one of the government commercial bank in the country. It has a big share of business & profit in the market. It also has a big HR team and HR infrastructure in the Field and Office. The Bank of Punjab has traditional organizational structure according to the international standards. Due to huge business & Human Resources, it has effective Human Resource Departments. Human Resource needs are forecasted according to the business increase. These forecasting are done using computer software. Staff is hired according to the increasing ratio of business. Employees are recruited from internal sources as well as from external sources. As an internal source, employees are promoted & upgraded according to the availability of seats due to retirement, resignation, termination or death of any employee. External candidates are also hired on trainee, actuary and contract basis. Candidates are invited for applications through advertisement. Applications are assessed and desired candidates are selected through a selection process including job description, job specification, number of vacancies, interviews, training, medical tests & probation etc.

Selected candidates are trained using various methods including orientation, on the job training, mentoring and computer based training. Employees are compensated fairly according to the policy of the Bank of the Punjab. There are lot of incentives and benefits which are provided to the employees. Appraisal reports are written using Graphical Rating Scale method. Moreover, employees are compensated on the basis of performance. The Bank of Punjab provides & recommends various courses & qualifications to develop the career. There are lots of opportunities for employees regarding career development. Employees are promoted, transferred and rotated according to the need of the organization regarding job changes. Labor and Management have good relations regarding wellness of employees. In spite of various weaknesses, The Bank of Punjab has strong infrastructure, good working environment, skilled work force, proper compensation and healthy labor management relations.

EVOLUTION OF BANKING ______________________ BANKING IN PAKISTAN OBJECTIVES OF STUDYING THE BANK OF PUNJAB

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INTRODUCTION OF THE BANK OF PUNJAB___________ 12


BRIEF HISTORY 12

VISION, MISSION & CORE VALUES


AWARDS AND ACHIEVEMENTS ORGANIZATIONAL STRUCTURE BUSINESS OF THE BANK OF PUNJAB HUMAN RESOURCE MANAGEMENT DEPARTMENT HUMAN RESOUCE PLANNING AND FORECASTING
EMPLOYEE RECRUITMENT AND SELECTION PROCESS

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18 21 26 42 43 46 48

TRAINING AND DEVELOPMENT

PERFORMANCE MANAGEMENT EMPLOYEE COMPENSATION AND BENEFIT

50 54

CAREER MANAGEMENT______________________________61 EMPLOYEE JOB CHANGES___________________________ 61 CHANGES WITHIN BOP_______________________________61 LABOR MANAGEMENT RELATIONS_____________________65 SWOT ANALYSIS _ 69 CONLUSION_______________________________________ 74 RECOMMENDATIONS_______________________________ 76 REFERENCES & SOURCES____________________________77 ANNEXES/APPENDICES 79

EVOLUTION OF BANKING

The word Bank is derived from the word Banqwe. The history of banking is traced as early as 2000 B.C. when the priests in Greece used to keep money and other valuable of the people in temples. The priests thus acted as agents. In seventeenth and eighteenth centuries, there was a new and important step in the history of banks. When people used to keep there gold and silver with the goldsmiths, the goldsmiths, in return, issued receipts for the gold, promising to hand it over on demand. Slowly people felt that if a person buys something against the payment of gold, the seller might agree accept, instead of gold, only the receipts of the goldsmith. As there was much convenience insuring bits of papers instead of heavy gold, the circulation of goldsmiths receipts grew wider. Later with the passage of time, the professional bankers, who specialized, in issuing notes, replaced the goldsmiths. These notes were backed by precious metal and were convertible in this metal on demand.

Therefore, in order to create confidence among the people, steps were taken to regulate the banking organization. In this regard a conference was held in November 1548. It was decided that the bank should be set up by the state, which should streamline the banking organization and techniques. The first Central Bank was formed in Geneva in 1578 and the Bank of England was established in 1694.

BANKING IN PAKISTAN Banking in Pakistan starts with partition of sub continent in August 1947. At that time of independence Pakistan laid 631 offices of 45 scheduled banks out of which 487 were located in West Pakistan. There were also Five Hundred non-scheduled banks at that time. The Foreign Banks at that time had a total of 19 branches in Pakistan but their roles were limited. After the partition The Indian Banks shifted their head offices to India and started migrating. The migration and shifting of capital caused a lot of trouble for Pakistan in the field of banking. As a result the number of offices of scheduled banks decreased from 631 to 195 by the end of June 1948. In West Pakistan this number fell from 487 to 81, in East Pakistan from 144 to 114 and then to 69 by June 30, 1951. Among these banks Habib Bank Limited had 25 brandies and Austria Bank had 19 branches both were run by the Muslims who shifted their head offices to Pakistan. Pakistan made an agreement with the Reserve Bank of India (RBI) to serve as The Central Bunk in Sep. 30, 1948. The RBI started the policies against Pakistan's interest. Due to this reason the govt. of Pakistan with the consultation of India govt. asked the RBI to finish the agreement from June 30, 1948 instead of Sep. 30, 1948. The govt. of

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Pakistan decided to establish the State Bank of Pakistan (SBP) as its Central Bank from July 1, 1948. In the same year the first Pakistan note of rupees 5, 10&100 were issued and Indian currency was withdrawn from the circulation. It proved a landmark in the banking field of Pakistan. Foreign Banks were restricted to port towns or big cities. HBL was encouraged to establish new branches all over the country. And govt. was also advised to establish a bank as an agency for SBP. In 1947 MCB (Muslim Commercial Bank) was established in Calcutta, then after partition its headquarter was shifted to Dhaka, then finally to Karachi. It was the first hank which was privatized. Allied Bank Limited was also privatized. In Bhutto regime all the commercial banks were nationalized. National Bank of Pakistan was established in 1949 to finance jute trade in East Pakistan and took over the agency functions from Imperial Bank of India (IBL).Currency Chest are present in NBP in ''very large city which is protected strictly with the State Bank assistance of SBP supervisory. NBP was the first Public Commercial Bank of Pakistan. Then DFC (Development Finance Corporation) was established. It was a non-banking financial institution to promote industrial system and to provide 'good infra-structure of Pakistan. In 1956 United Bank Limited was established by Agha Hassan Abidi who was also the founder of BCCl (Bank of Credit & Commercial International). In 1956 PICIC was also established. The basic theme behind it, was the establishment of industry. Afterwards DFC name was changed to lDBP (industrial Development Bank of Pakistan) in 1961. In 1961 Agriculture Development Bank of Pakistan (ADBP) was also established. It was purely agriculture bank or agro based economy bank. In 1962 NlT (National Investment Trust) was established for open ended mutual funds. In vestment Corporation of Pakistan (ICP) was established in 1966. In 1973 NDFC was established. It is for long term debts to public sector because all banks were nationalized and there was no bank in private sector. Its first loans were given to govt. institutions but from 1980 this restriction was omitted. ICP (Investment Corporation of Pakistan was closed due to overlapping of financial institution.

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OBJECTIVES OF STUDYING OF THE BANK OF PUNNAB

The objective of studying The Bank of Punjab is to complete my internship and to prepare the internship report. To check and observe the practical implementation of concepts and theories, which I gained during my studies. To compare the theoretical knowledge with practical situations to find out the compatibility between current theoretical situation & practical situation. To observe the appraisal system of the organization and its impact on compensation. To find out the impact of both appraisal & compensation on output and performance of any employee.

Another objective of studying the organization is to observe the relationship between management and workers and to see how the workers and management cooperate with each other.

To find out the weaknesses of the organizations Human Resource Management Process & System and to provide recommendations and suggestions to improve the HR Process & System.

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BOP always supportive to formers, it provides agree loan so great opportunity to learn about agricultural finance.

NTRODUCTION OF THE BANK OF PUNJAB

Brief History Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in 1994. The Bank of Punjab is working as a scheduled commercial bank with its network of 273 branches at all major business centres in the country. The Bank provides all types of banking services such as Deposit in Local Currency, Client Deposit in Foreign Currency, Remittances, Advances to Business, Trade, Industry and Agriculture A wholly owned subsidiary of BOP First Punjab Modaraba (FPM) was established in 1992 and is being managed by Punjab Modaraba Services (Pvt) Ltd. The Bank of Punjab is headed by a Chairman and assisted by the Executive Directors appointed by Govt. of the Punjab. Since its incorporation the Bank has grown manifold showing remarkable growth in all aspects. Especially, after the current management took over the affairs of the bank in 2008 there has been tremendous growth in all its facets of operations as a result of application of prudent and pragmatic policies with futuristic approach. Owing to its significant performance, profitability, financial standing and market penetration the Bank has attained reputation of a responsible corporate citizen playing a pivotal role in economic and social development of the country.

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Currently, the Bank of Punjab is regarded as one of the most profitable banks of the country both in absolute & real terms. Sound financial footing, improved profitability and competent management are the key factors taken into consideration by PACRA, the credit rating agency, while assigning to the Bank highly credible ratings of AA for long-term and A1+ for short-term which is the highest rating in this category. Recognizing the role of technology in effective/ efficient operations of financial sector BOP has computerized all its branches, which are inter connected vide online system on real time basis. Bank's customers are facilitated by shared network of on line ATMs in all major cities of Pakistan. Bank's share in economic growth, especially agricultural and SME sectors cannot be undermined. Penetration into Agri-economic was made possible through strategic positioning of branches and introduction of a number of Agri-based financing schemes allowing the bank to play a pivotal role in strengthening this neglected sector of our economy.

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VISION STATEMENT
To be customer focused bank with service excellence.

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MISSION STATEMENT
To exceed the expectations of our stakeholders by leveraging our relationship with the Government of Punjab and delivering a complete range of professional solutions with a focus on Programme driven products & services in the Agriculture and Middle Tier Markets through a motivated team.

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CORE VALUES
Our customers Profitability Corporate social Responsibility Recognition and reward Excellence Integrity Respect as our first priority for the prosperity of our stakeholders that allows us constantly invest, improve and succeed to enrich the lives of community where we operate for the talented and high performing employees in every thing we do in our dealings for our customers and each other

AWARDS AND ACHIEVEMENTS

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Excellence Award by the Central Board of Revenue The Central Board of Revenue presented "Excellence Award" to the Bank of Punjab in recognition of the contribution made by the bank towards Government exchequer. 3rd Kissan Time Awards In recognition of Bank's contribution in development and growth of agricultural sector, the Bank honored with "Top Bank for Agriculture Loans and "Best Bank Crop Insurance" under 3rd Kissan Time Awards year 2006. Best Corporate Report Award Annual Report of the Bank for the year 2005 won 5th position for "The Best Corporate Report Award" for the financial sector, adjudicated jointly by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan. 16th Bolan Excellence Award The Bank was awarded Best Bank Award under 15th Bolan Excellence Awards distributed in 2006. Achievement Award The Lahore Chamber of Commerce & Industry (LCCI) awarded the Bank "LCCI Achievement Award" 2006.

Source: Manager Regional Office (HR)

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FINANCIAL PERFORMANCE: Financial highlights for the past five years ended May 31st 2009. are presented along with key performance indicators.

Source: http://mis.bop.com.pk/mis/ (BOPs updated MIS system)

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Year Wise Growth Year 2002 2003 2004 2005 2006 2007 2008 2009 Close Income 1,615,550,270.94 1,632,667,268.55 2,869,338,029.73 7,840,303,996.67 17,835,532,927.95 28,518,593,936.67 35,041,452,374.16 14,691,276,785.95 Close Expense -1,173,946,907.82 -1,097,946,012.40 -1,676,959,562.82 -4,462,674,531.28 -11,951,293,782.43 -21,769,277,662.42 -29,691,225,055.73 -15,062,093,781.04 Profit Loss 441,603,363.12 534,721,256.15 1,192,378,466.91 3,377,629,465.39 5,884,239,145.52 6,749,316,274.25 5,350,227,318.43 -370,816,995.09 Growth(%) BASE LINE 21% 123% 183% 74% 15% -21% -107% Till May 2009

The Bank of Punjab has played very vital role in the economy by providing employment to the people of the country as permanent employees and as part of its marketing force and by investing the huge funds in different sectors of the economy.

Organizational Structure of the Bank of Punjab

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Overview of The Bank of Punjab has the following portfolio working therein from the junior most officers to the Chief Executive that is i.e. 1. Chief Executive Officer 2. Deputy Chief Executive Officer 3. Group Heads 4. Heads (General Manager) 5. Regional Chiefs 6. Area Managers 7. Branch Managers 8. Branch Operation Manager 9. Team Leaders 10. Relationship Manager 11. Cash Officer 12. Junior Officer The portfolio of staff is as under gradually 1. Messengers 2. Telephone operators 3. Gunman 4. Electrician 5. Driver

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President
Commercial & Retail Banking Group Chief Corporate & Investment Banking Group Chief

Group Head

Regional Manager

Operations Group Chief Regional Audit Incharge Risk Management Group Chief

Regional Operations Head

Branch Manager

Corporate Head North & Corporate Head South

Operations Departments of Region

Branch Operations Manager Corporate Branches

Regional Commercial Head / Unit Head

Team Leaders

Relationship Managers/ Officers

Figure: Organizational Structure of BOP

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HIERARCHY AT BRANCH LEVEL

Regional Chief, Regional Operational Head

Internal Audit

Branch Manager, Operational Manager

Credit Committee

Customer Deposit

Cash & Clearing I .T

Bills & Remitt

Accounts

Advances Foreign Exchange

Consumer Finance

NON-CLERICAL STAFF

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Source:http://www.bop.com.pk

Registered Office/BOP Head Office 10-B, Block E-II, Main Boulevard Gulberg III,lahore. Tel: (042) 5783700-10 Main Branch 7 Egerton Road Lahore Tel: (042) 9200419,9200187 Fax: (042) 9200351 Branch Network The Bank of Punjab has opened 273 branches. All the branches are well located in commercial and some residential areas, thus entering to the need business community and private individuals. All branches are air-conditioned, well furnished, and equipped with modern facilities to, provide services in congenial atmosphere. CITIES Faisalabad Gujranwala Karachi/Quetta Lahore NO.OF BRANCHES 44 45 08 67

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Multan Peshawar Rawalpindi Total branches REGIONAL OFFICES

63 08 38 273

The network of the branches of BOP is divided in to seven Regions in all Pakistan. The administrate control, operational control and increasing business volume is the responsibility of the Regional chief. The following Region has been established up till now. 1. Regional Office Lahore. 2. Regional Office Rawalpindi. 3. Regional Office Gujranwala. 4. Regional Office Faisal Abad. 5. Regional Office Multan. 6. Regional Office Karachi / Quetta. 7. Regional Office Peshawar Structure of HRM Department in BOP There are 4950 employees working in The Bank of Punjab: 1. Total numbers of regular employees are 2742 2. Total numbers of contractual employees are 2208 3. Total numbers of executives are 473 4. Total numbers of officers are 3211 5. Total numbers of non clerical staff are 1266

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BUSINESS OF THE BANK OF PUNJAB

The banks provide various products & services to its customer to cater their need of Investments and other social or business requirements. BOP is now leading the way to the most modern and dynamic banking in the country. Being a Banking company BOP is performing normal Banking transactions as well as providing many job opportunities. As a govt. bank perform many social and economic functions e.g. payment of pensions, receipts & payments of govt. funds, special services to farmers.

BOP Product Lines BOP Deposit Products BOP Loan Products BOP Finance Schemes Remittance of Money BOP Term Deposit Receipt BOP Services BOP Deposit Products Current Deposit Schemes (i) (ii) (iii) Current Account Basic Banking Account BOP Tijarat Account

Current Account

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The Accounts shall be opened upon submission of duly filled-in Banks prescribed Account Opening Form properly introduced in the manner provided and on submitting all such documents as may be revised by the Bank. The Bank reserves the right to demand such relevant documents even after opening of account as deemed necessary. The minimum initial deposit will be Rs.100.

No profit will be Payable. Services Charges Rs. 50/- will be deducted if blow the monthly balance Rs.10000/The Accounts may be opened singly in one name or jointly in two or more names. ZAKAT is leviable on the assets as described in the Zakat & Ushr Ordinance 1980 (as amended from time to time)

Basic Banking Account The minimum initial deposit will be Rs.1000.


No profit will be Payable. No fee (service charges) for maintaining such accounts will be charged. There will be no limit for maintain minimum balance. In the cases, there balance in BBA's remain "NIL" for a continuous 6 month period, such accounts will be closed.

Account holder will be allowed a maximum of 2 deposit transactions and 2 checking withdrawals, free of charge either through cash/through clearing per month.
BOP Tijarat Account (BTA)

The rent free locker facility will be allowed on availability of locker and after maintaining average balance for six months. The reduction in rate of mark up on Consumer finance will be on loan amount equal to twice of last months average balance.

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The incentive package will be reviewed on quarterly basis and on the deposit procured vis--vis cost.

Profit & Loss Sharing Schemes PLS Account Pehlay Munafa Scheme Senior Citizens Saving Account Gharalyoo Saving Account Ziada Munafa Saving Account PLS-Saving Profit Plus Account Corporate Premium Account Munafa hi Muanafa Account PLS Accounts PLS Savings Accounts may also be opened by charitable institutions, for Provident Funds and other funds of benevolent nature by Local Bodies, Autonomous Corporations, Companies, Associations, Societies, Educational Institutions, Firms etc. and in all other cases where such accounts are required to be opened under the orders of Competent Court of Law The rates of profits may vary from period to period viz January to June/July to December each year. Calculation of Profit on PLS Saving Accounts will be made for each calendar month on the lowest credit balance of an account between the close of the 6th day and the last day of the month. Pehlay Munafa Scheme Recently this scheme is introduced to attract investors. According to this scheme profit is paid in advance which can be reinvested. Profit rate charge is multiplier e.g. more you

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invest and more the rate will apply. Period for this scheme is three, six, nine, twelve and eighteen months. Senior Citizens Saving Account This is a saving bank product available for all senior citizens i.e. persons of 60 years and above who are eligible to open a saving account as per our Banks criteria. The account can be opened singly or preferably jointly (husband & wife) provided either of them is of 60 years or above. This product is designed to attract procure deposit/savings of senior citizens by offering attractive, innovative incentives and higher rate of profit to senior citizens. Gharayloo Saving Account This is a saving bank product available for all females who are eligible to open a saving account as per our Banks criteria. The account can be opened singly or jointly with husband. This product is designed to attract procure deposit/savings of ladies particularly housewives of expatriates & students. Ziada Munafa saving Account This is a saving bank product available for general public i.e. persons who are eligible to open a saving account as per our Banks criteria. The account can be opened singly or jointly. This product is designed to attract procure deposit/savings of general public particularly salaried and small investors. PLS-Saving Profit plus Account

Individuals, corporations, organizations and various provincial / federal government departments can open accounts under the scheme. This is an operating account The accounts can be opened in individual or joint names. The deduction of Zakat and Withholding tax will be applicable as per law of the land.

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Average balance during a calendar month will be taken to determine the deposit slabs and applicable profit rate for that month for the purpose of creating provisions.

Munafa Hi Munafa - III This is a term deposit product. The term is from 1 month to 5 years and the profit is paid on monthly basis. The minimum amount of deposit is Rs.80,000/-. The rate of profit is from 6.0 % p.a. to 8.50 % p.a. depending on the tenure which is higher than Banks normal term deposits. This product is governed under PLS rule i.e. the rates mentioned are expected and the Bank reserves the right to revise the rates and terms & conditions of profit under Profit & Loss sharing system. Commercial Loan Running Finance Corporate Finance Running Finance Running finance facility provided by the bank to its selective customers for business purpose only. A limit of amount is sanctioned to borrower keeping in view the financial worth of his business. Customer has drawing power equal to loan sanctioned by bank and only mark up will be charged on amount withdrawal for business need not on sanctioned amount. The loan is sanctioned against three modes. 1. 2. 3. Against Pledge of Stocks / Shares Against Government Securities Against Hypothecation of Stocks

Pledge of Shares This facility is generally extended to companies or individuals on selective basis against pledge of tangible securities such as Shares. The facility is required to be adjusted periodically or within the period as specified in the Sanction Advice/DAC.

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Government Securities Government Securities include Defense Saving Certificates (DSCs), Special Saving Certificates (SSCs), Regular Income Certificates (RICs), Behbood Certificates, US Dollar Bonds & NIT Units etc, issued by National Saving Centre Government of the Pakistan/National Investment Trust. Hypothecation of Stocks Banks in such cases although do not have a physical custody of the goods, however have a legal Charge/Lien established, thereon, providing a legal recourse to the Bank to take custody of the stocks, in the event the borrowers default to repay the loan or fail to meet their obligations, as agreed. Criteria to merit this facility is provided in the Banks Credit Policy Manual, which is care fully assessed by Risk Managers, while recommending a credit proposal to credit committee. Corporate & Investment Banking This group performs its function through its following two units: Corporate Banking Investment Banking Corporate Bank The Corporate Banking shall endeavor to market new clients and retain the existing relationships and build market share through offering superior services, competitive pricing and wide product range to valued corporate clients including the Multi National Companies (MNCs). This Unit taking advantage of tremendous growth potentials of corporate accounts will continue its endeavor to remain a major contributor to Banks earnings. Investment Banking Investment Banking Unit offers full spectrum of services, which include TFCs, Syndicated Finances, Structured Finances, Leveraged Buyouts, Project Finance, QuasiEquity Products, Independent Advice, Equity Placements, IPOs, Equity Underwriting,

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Mergers, Corporate Restructuring, Acquisitions and other products. IBU shall also work on and come up with providing Fund Management Facilities

BOP Financing Schemes SME Finance Clean Pakistan CNG filling Scheme BOP is providing finance for the establishment of CNG filling stations. Lady Entrepreneur Scheme Females are encouraged through micro finance schemes to start business with lower fianc. Auto Lease Financing Scheme BOP as also lease auto mobiles to fulfill the need of society. Car Dealer Financing Scheme Finance is provided to dealers especially to car dealers at term and conditions keeping in view the need of business. Karobar Bharao Scheme This scheme is introduced to expend the running business. Fertilizer Dealer Financing Scheme Loans are offered in rural areas to farmers to purchase of fertilizer periodically. Ali Akbar Group Franchise Financing Scheme According to agreement with Ali Akbar Group fianc will be provided for its franchises Atlas Honda Limited-Authorized Dealer Financing Scheme An agreement is made with Atlas Honda Ltd. for financing. Agriculture Schemes

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Kisan Dost Agree Finance Schemes Provision of financial facility to farmers for purchase of inputs (Seed, fertilizers, pesticides, fungicides etc).Resident Self Cultivator having maximum 50 acres. The applicant should not be defaulter of any other Bank and property should be free from any encumbrances . Amount: Lease Maximum Rs.500,000/- according to per acre limit of the crop. Facility for Purchase of Tractor under Green Tractor Finance

Scheme 2008-2009 Facility for Purchase Of Tractor Under Green Tractor Scheme 2008-09" All Farmers who have been declared successful through computerized balloting. The applicant should be a resident, owner/self cultivator of minimum 05 Acres of agriculture land free from all encumbrances. Existing BOP borrowers having land under Bank's charge are also eligible under this scheme. Kisan Dost Tractor Finance Scheme Provision of financial facility to the farmers and non farmers Tractor on Lease Finance Basis. Eligibility: Amount: Resident Self Cultivator having Maximum Rs. 750,000/(those who provide tractors to farmers on rental basis for various tractor related operations), for purchase of

Live Stock Development Scheme Provision of financial facility for purchase of animals (Milk & meat production, cattle farming, poultry Farming and Fish farming) to the farmers and non farmers those who have their own live stock farm/fish farm for commercial purposes) Installments are 16 equal quarterly installments within four years excluding one year dry period Commercial Agro Services Finance Scheme Provision of financial facility to the commercially viable entities with immaculate track record for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters e.g. for providing agri services to farmers. Commercially viable entities with immaculate track record with the Bank/Other

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financial institutions. Running Finance Facility for Livestock / Poultry and Fish Farms Running Finance Facility for purchase of animals, cost of feed, medicines and other running expenses of the Farm. Running Finance Facility will be provided for the type of Live stock Farming: 1. 4. Calves Fattening Farms 2. Broilers Farming. Fish Farming. 5. Semen Production Unit. 3. Layer Farming.

Landless People for Purchase of Buffaloes for Life Sustenance Lease Financial Facility for purchase of Milk producing Animals for landless people. The applicant should be having space to keep animal domestically. Maximum limit is Rs.50,000/- against only one personal guarantee. Consumer Finance A personal loan facility for the purchase of consumer durable goods (like TV, Refrigerator, Cooking Oven, for their personal use, repayable on easy installments. Target Market All serving Personnel of Armed Forces irrespective of ranks including civilian employees. Govt./Semi Govt. Organizations/ Autonomous Bodies Armed Forces, BOP Employees Limited Companies/ Multinational/Educational Institutions Registered Firms/Financial Institutions etc. Self Employed Professionals (SEP) Doctors, Chartered Accountants, Architects, Engineers.

Products Available TVs, Refrigerator, ACs, Washing Machine, Computer Notebook/Laptop Bicycles, Mobiles, Vacuum Cleaners and many more products of all renowned brands. Down Payment 0% Tenure/Loan Amount/ Mark-up Rate

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Tenure 06 Months 12 Months 18 Months 24 Months 36 Months

Minimum Loan Amount Rs. 4,000/Rs. 6,000/Rs. 8,000/Rs. 12,000/Rs. 15,000/-

Mark-Up 0% 0% 09% 12% 18%

Eligibility Criteria 1. 2. 3. 4. Experience: Permanent Employ: 2 years in current business Valid CNIC Documents Required 1. 2. 3. Application From Copy of valid CNIC Latest Salary Slip/ Employee Certificate on organizations letter head or on letter duly stamped. ( Specimens of certificates for (a) Salary received through BANK ACCOUNT & (b) Salary received in CASH are enclosed herewith). Security 1. 2. 3. 4. 5. Life insurance of Borrower. undertaking by Employee & Concerned of concerned Army Unit (specimen enclosed) Hypothecation of Asset itself. One Un-dated cheque of Marked up Amount. Age between 21 and 59 Years or retirement date; whichever is earlier (59 Years at maturity of facility) Minimum Take Home Salary is Rs. 5000/Permanent Employee with Minimum 01 Year of service with Army. Have valid CNIC

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Payment Mode In monthly installments BOP Aasaish Loan Scheme Nature: Personal Loan Facility for purchase of consumer durable goods from Asaish Partners for personal use, repayable on easy installments. The maximum financing amount Rs. 5,00,000/-, No mark up for tenure up to 12 months. Consumer Demand Finance Scheme (CDC) A personal Demand Finance facility for meeting their personal needs & repayable through monthly installments. Minimum loan Amount Maximum Loan Amount Tenure: Minimum Tenure: Maximum Tenure: Quick Cash A Personal running finance facility for meeting the personal needs. Loan Amount Minimum loan amount Maximum Loan amount Tenure: 01 Year (Renewable) BOP Car Loan Demand finance facility to purchase brand new locally manufactured / assembled cars / imported cars, Chevrolet & for personal use only. Finance Amount Rs. 2,00,000/- to Rs. 50,00,000/Down Payment 10% for Govt. and 15% for Pvt. Tenure 1 to 5 years Payment Mode Rs. 50,000/Rs. 5, 00,000/01 Year 05 year Rs. 50,000/Rs. 5,00,000/-

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In monthly installments BOP Motorcycle Loan Salary requirement (10000/- govt. Rs. 15000/- Pvt. Employees) 3 Years job experience and valid driving license & age 25-58 years Period of loan, 1-3 years Amount of facility, Rs. 20,000/- to 2, 00,000/Down Payment, 10% BOP House Loan Scheme It is a long term facility for purchase of house, flat, construction of house on self owned plot or for renovation / improvement of home. Who can avail: 1. 2. 3. Finance Amount Purchase of house/flat Minimum Rs.3 lac Minimum Rs.3 lac. Maximum No limit* Maximum No limit* construction of house/flat Additional/Improvement Renovation of house Salaried persons Self-employed professional (SEP) [Chartered Accounts, Engineers, Architects & Doctors / Dentists] Self-employed business persons(SEB)

Tenure Purpose Minimum Purchase of House/flat 3 years Purchase of plot & construction thereon 3 years or construction only Renovation/ improvement Smart Cash Loan BOP ATM / Debit Card 3 years Maximum 20 years 20 years with 01 year grace period*

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BOP Apna Cash Card is an ATM plus Debit Card. The BOP Debit Card holders will be able to transact at any of the 1000 + Merchants across the country. The following services can be utilized at the Point of Sale (POS) terminals: Purchasing Your BOP Debit Card can be used in place of cash at all outlets where the M-Net logo is displayed. This is a service which lets you pay directly from your account without using cash. When a payment is made through the debit card, your account is directly debited.

Remittance of Money

The Bank of Punjab, like other Commercial Banks undertakes to remit or transfer money from one place to any part of the country and outside the country. The money is remitted by means of: 1. Demand Draft (DD) 2. Pay Order (PO) 3. Mail Transfers (MT) 4. Telegraphic Transfers (TT) 5. On line Transfer Demand Drafts (DD) The most common means of remittance in the bank is Demand Draft. When a person wants to transfer his money to anther person having account with any other bank, he can do so by obtaining a Demand Draft. The purpose of DD is to secure the amount which we have. DD is a very secure method of transferring the money from, one place to another.

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Pay Order Pay order is a guaranteed document issued by the bank, the payment of which is made by the same branch issuing this pay order. Pay order is used to transfer the funds within the city while Demand Draft used to transfer the funds between the cities. Mail Transfer (MT) To transfer money from one place to another through a bank the second means of remittance is Mail Transfer generally called MT. Money is Transferred through MT mainly because the transferor, unlike in case of DD does not want to obtain and take care of any instrument like DD and, of course, to present it at the Drawee Bank. So in order to avoid above mentioned risks, which may contribute to the loss or delay on the part of both the banker and the DD holder, the money transferor resorts to the MT. Telegraphic Transfer (TT) The quickest means of remittance in The Bank of Punjab is Telegraphic Transfer normally called TT. The application procedure involved in the TT is almost the same as is in the case of MT. In fact in The Bank of Punjab the Application form for DD, MT, and TT is the same. On Line Banking Facility According to this facility the customer can make remittances and draw amount from their account through network of branches with in the country from BOP owns branches. It is real time on line transaction facility. Nominal commission is charged on these transactions keeping in view the amount remitted or withdrawn.

BOP ONLINE Banking With BOPs state of the art online banking, you can access your account from more than 272 branches located in 65 cities across Pakistan. Now BOP enables you to do all the following transactions in minutes through designated ONLINE Branches. Salient features of online banking are:

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Cash Deposit Cheque Encashment Stop Payment Account Statement

Term Deposit Receipt 1. SNTDR-7 Days 2. SNTDR-30 Days 3. TDR -1 & Above Years 4. MIS (Monthly Income Scheme) Special Notice Term Deposit -7 Days Scheme (Sntd-7 Days) Under this scheme, the rate of profit is given on retention of deposit for minimum 7 days. After lapse of seven days, the customers will earn profit on same rate .The rate of profit paid in last half year i.e. in December 2008 was 0.5 % per annum. For this purpose the customers are issued certificate of different denomination as required by them. On their encashment principal amount along with their profit is paid to customers through their account maintained with the concerned branch 3. Special Notice Term Deposit -30 Days Scheme (Sntd-30 Days) It is similar to above mentioned scheme in operation except the difference of 30 days. The customer who with draw money before 30 days will earn profit proportionate to number of days passed. The profit rate lastly announced i.e. in Dec. 2008 on this scheme was 1%. per annum. 4. Term Deposit Receipt (TDR)

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On these schemes the profit is given according to different terms and conditions agreed between the customers and the Bank. The customers are issued different certificates for different terms and are en-cashed on their request. 5. Monthly Income Scheme. (MIS) This is a term deposit which is placed for 5 years and profit is payable on monthly basis. The certificates are issued in denomination of ten thousands and multiple of 10 thousands. The rate of profit currently being paid is 11% per annum.

BOP Services 1. Utility Bill Collection 2. BOP Locker Facility Utility Bill Collection BOP has over 272 branches collecting electricity, gas, telephone and WASA, and other utility bills like demand notice for telephone connection during business hours. Almost all the branches have special utility bills collection counters with sunshelters and drinking water. Separate booths for utility bill collection are available at all major cities for the convenience of the public. Branches in all major cities have electronic bill collection machines. And now-a-days BOP management is trying to launch on-line banking system in all over the Pakistan. For this purpose some of the branches have been equipped with this on-line facility. For the customers convenience, BOP accepts cheques for payment of utility bills. Lockers Provision of lockers is safe custody service that the bank of Punjab provides to their customers for keeping jewelry, important documents and other valuables.

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1. Custodian The bank is called the Custodian. Licensee The customer who is permitted by the bank to use the locker is called the Licensee.. 2- Lockers Security Security of all lockers is Equivalent to two years Rent for respective locker. Late payment fee 5% per month of annual rent or Max of 25% of the annual rent. The breaking charges are actual or Rs.2000/- which ever is higher.

Human Resource Management Process in BOP The Bank of Punjab has its huge human resources in the shape of Field Force and Office Employees. The organization controls its working force through HR Teams. These HR Teams have efficient techniques to complete HR Process.

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President

Group Head Personnel & General Services

Head Personnel & General Services / Chief Manager

Incharge Salary / Income Tax

Incharge Medical

Incharge Training & Development

Manager Regional Office

Human Resource Development

Figure: Structure of HRM Department Source: www.bop.com.pk/management

Human Resource Planning & Forecasting

HR Planning & Forecasting is the process of deciding what positions the firm will have to fill, and how to fill them. HR Planning & Forecasting is done by the senior management with the help of departmental & sectional heads. Moreover, growth and increasing volume of business also affects the overall process. As business increases, demand for staff & officers also increase due to huge volume of business especially in the closing days.

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Human Resource Planning Process Management of The Bank of Punjab revise the strength of Human Resources time by time according to the need of the organization due to increase in the business & working. The Bank of Punjab is rapidly developing organization in insurance sector so human resources needs are very much crucial for it. Forecasting Human Resources Needs Computer is used for the determination of future staff needs by projecting sales, volume of production and personnel required to maintain this volume of output, using computer software. It is decided on the basis of business volume and staff is hired against some targets achieved. A minimum standard of business for one employee is set and staff is recruited according to the ratio of business increase. Employee Recruitment & Selection Employee recruitment & selection is a careful process so management chooses the best candidates after completing all the necessary requirements. Sources of Candidates: Advertisement on daily newspapers in English and Urdu languages is given where as criteria set for recruitment and selection of candidates as for set criteria, approved by the boards of directors. The recruitment within the staff is the authority of the zonal head while the selection of officers is initiated by principal office. The Chairman may create temporary posts within the budge provision for a period not exceeding six months. The Chairman may, with the prior approval of the Board, create permanent posts. There are two sources of candidates in BOP. Internal Candidates When the posts become vacant due to promotion, termination, transfer, retirement, death or increase in business, management decides & provide opportunity to its

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employees for promotion or upgradation on the basis of skills, experience, seniority or qualifications. Various candidates are promoted to the officer grades from staff members on acquiring higher studies in relevant field. Most clerical posts are filled from the qualified Record Sorters & Naib Quasids. Moreover, internal candidates are considered on the basis of availability of seats and any of these qualifications; 1. Graduation & Post Graduation 2. Masters in Computer Sciences 3. Masters in Information Technology 4. Masters in Business Administration 5. Actuarial Qualifications 6. Insurance Courses (FLMI, ACII etc) 7. Chartered Accountant 8. ACMA External Candidates The external sources of candidates, which are used by The Bank of Punjab are: i. ii. i. Management Trainee Contract Basis Management Trainee Management Trainees are recruited on graduation plus test basis. The numbers of person are required for the management trainees are selected on the bases of test held by the principal office. Trainee executives are enrolled with Institute of banker of Pakistan. On the successful completion of training from IBP are appointed as executive officers. On completion of seven papers a trainee is appointed as Assistant Manager and on the completion of ten papers as Deputy Manager on the permanent basis. ii. Contract Basis

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All staff members are appointed on contract basis and after a specific period these contract employees are appointed as permanent employees of BOP. After completing the probationary period these employees become confirmed.

Employment Selection Process i. Advertisement

As and the competent authority fells requirements for institution of any specific or technical are skilled manpower in the Bank. The corporation gives an ad in the wide circled daily newspapers advertising the criteria of selection of candidates. After holding test, the numbers of required are selected to ever fulfill the set criteria. ii. Orders by Chairman

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All appointments are made on the recommendations of the appropriate Selection Committee to be constituted by the appointing authority concerned, in accordance with such general and specific directions as the Chairman may give from time to time. iii. iv. Applications Minimum Age Applications are required from desired candidates with the specific qualifying criteria. The minimum age for entry into Bank is 18 years and the maximum age varies according the grades. v. Qualification Qualifications and experience for appointments to various posts in the Bank may be laid down by the Board from time by time. vi. Medical Fitness No person can be appointed to a post unless, he has been certified by a Medical Officer specified in this behalf by the Bank, to be physically fit for service. The certificate shall be in such form as may be prescribed by the Board. vii. Citizenship No person who is not a citizen of Pakistan can hold any post in the Bank except with the prior approval of the Board in writing. viii. Probation

All employees, except those appointed on contract or on deputation or on special terms or on temporary basis, are on appointment placed on probation for a period of six months. If any employee on probation fails to show satisfactory performance during his probationary period the appointing authority may terminate his service. ix. Antecedents Investigation about the character of the candidate is done by the concerned Police Station and all documents are verified from concerned educational boards and universities. x. Confirmation On satisfactory completion of the period of probation, the appointing authority may confirm an employee by an order in writing.

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Training & Development

New appointed employees are trained according to the need of any job. Basic training is given in the Human Resource Development Department in which orientation and some basic technique about the job are provided to the employee. It is assessed that which kind of training is necessary for the employee and which kind of skill he or she may have.

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Training Need Assessment: Particularly with lower level workers, it is common practice to hire inexperienced personnel and these personnel are trained providing proper training. Skills and knowledge is given to these personnel, which is crucial to perform any job. A detailed study of the job is collected from concerned department to identify the specific skills required. Moreover, new hired employee is posted on a specific job and observed the output and the training needs. If there is any deficiency, then senior employees help that employee to learn and work properly. Here are some kinds of training techniques, which are used in BOP; i. ii. iii. iv. v. vi. On the Job Training Lectures Orientation Audiovisual Based Training Computer Based Training Training from eminent institutes like wise PIM, NIPA

Employee Development:

Employee Development is any attempt to improve current or future performance by imparting knowledge, changing attitudes or increasing skills. The Bank of Punjab also provides various courses to increase skills and knowledge of its employees. Some courses are offered by The Bank of Punjab and others are recommended from different institutes. The courses which are offered or recommended by the Organization are mentioned here: i. Actuarial Science Actuarial science deals with risk management. A qualified professional in Actuarial science is called an Actuary. The Actuary is a business professional who uses mathematical skills to define, analyze and solve financial and social problems. In dealing with such problems, actuaries create and manage programs which reduce the adverse financial impact of the expected and unexpected events like illnesses, accidents, unemployment, loss of property or premature death.

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At the principal Office of The Bank of Punjab, there is a separate division looking after all actuarial matters. From time to time The Bank of Punjab also inducts bright young students in its Actuarial Training Scheme, which provides an opportunity to acquire actuarial qualifications while engaged in practical actuarial work as an employee of BOP.

Performance Management

Performance Management is a process that consolidates goal setting, performance appraisal and development into a single, common system, the aim of which is to ensure that the employees performance is supporting the companys strategic aims. Performance Management is very much concerned in The Bank of Punjab for promotions, incentives & awards.

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Performance Standards & Expectations: Duty roasters are designed for all kind of jobs in the form of Job Description. These duty roasters are prepared with the coordination of Departmental & Sectional Incharge according to the need of a specific job. Moreover, it is also decided and placed any personnel according to its skills, knowledge, ability and qualifications. After that, the performance is measured comparing the job description with the output of any personnel. Employees are assessed through annual appraisal reports and awarded with incentives so that output may be increased. Any deficiencies are eliminated or removed through counseling and training. How Performance Reports are Written: Appraisals play an integral role in the performance management process of BOP. The appraisal lets the boss and subordinate to develop a plan for correcting any deficiencies and to reinforce the things the subordinate does correctly. Appraisals serve a useful career planning purpose by providing the opportunity to review the career plan of The Bank of Punjab in the light of his or her strengths and weaknesses. Performance Reports are the basis for any kind of promotion, special increment, productivity bonus and various other incentives in BOP. Graphical Rating Scale Method is commonly used to appraise and assess the performance of any employee. These performance reports are called Annual Confidential Reports or Annual Performance Appraisal Reports. Annual Performance Appraisal Report in respect of each employee is initiated and written by the immediate supervisory officer not below the rank of Deputy Manager and is countersigned by the next superior officer not below the rank of Manager. In the absence of Deputy Manager, the report may be completed by the Assistant Manager. The Executive Officer or Assistant Manager who may be assisting in supervision of the work is also consulted. The report in respect of each calendar year is completed by 20th January of ensuing year and submitted through the Departmental Head to the Personnel &

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General Services Division by the countersigning officer alongwith a complete list of employees in his Department latest by 27th January. Strict adherence to these deadlines is required. Performance Appraisal Report is written for a calendar year. In case an employee has served under more than one supervisor during a calendar year, each supervisor who supervised the employee for a period three months or more completes the report for the period supervised. No report is required from a supervisor if the employee has worked under him for less than three months during a calendar year. Grading & rating of the employees is mentioned as under: Grading A1 A B C D E Description Most Outstanding Very Good Good Average Below Average Poor Rating 9-10 7-8 5-6 3-4 1-2 0 Overall Rating 90-100 Points 70-89 Points 50-69 Points 30-49 Points 10-29 Points 0-09 Points

Any factor graded C or below or a rating of less than 5 points means an indication of area requiring improvement.

An overall rating of less than 50 points means that: o Serious efforts are needed to improve over all performance. o Chances of promotion/move over subject to other rules in this behalf may be adversely affected.

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The report is completed objectively and factually. While recommending promotion it is ensured that the employee possesses requisite qualifications and experience and would be suitable for the job.

The countersigning officer may modify or expand the evaluation by the reporting officer, if necessary. The assessment by countersigning officer will be final so far as the service record of the employee is concerned.

Part I of the Annual Performance Appraisal Report has the detail about the employee, who is being appraised. The detail about employee is filled by employee in the form of Name, Date of Birth, Grade, Designation, Department, Pay Scale, Present Pay, Date of Appointment, Last Promotion, Qualification etc. Moreover, some kinds of questions regarding development of employee are also included in the report. Part II of the report is filled by the reporting officer/immediate supervisor in which, these attribute are evaluated & marked: i. Quality of Work

In Quality of Work, the extent & degree of neatness, accuracy, thoroughness, frequency by errors and need for redoing the work are evaluated. ii. Quantity of Work Actual output as compared with that can normally be produced by honest and proper utilization of duty hours is evaluated here. iii. Knowledge of Job Degree to which the employee knows and understands the job procedures and requirements. iv. Intelligence, uptake and Grasp Here the intelligence and grasp on work of any employee is assessed. v. Initiative

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Extent to which the employee proceeds on his own to complete assignments, degree to which he seeks to improve methods or work habits and to seek additional challenges and responsibilities. vi. Cooperation Ability to work with others, degree to which employee contributes to team effort and ability to gain and give cooperation and to maintain respect and confidence. vii. Attitude & Behavior Attitude & behavior of the employee, discipline, sense of loyalty and responsibility is assessed here. viii. ix. hours. x. Health & Social Habits It is also assessed that what are the habits of employee and health of the employee. Part III of the Annual Performance Report has some other kind of information regarding overall performance of the employee. Integrity & Dependability Attendance Reliance that can be placed in financial matters and carrying out instructions Faithfulness in coming to work in the morning and after lunch and conforming to work

Employee Compensation & Benefits in BOP Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses), and indirect payments (financial benefits like employer paid insurance and vacations etc). Benefits are the indirect financial or non-financial payments employees receive for continuing their employment with the company.

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The Bank of Punjab is a sound financial organization and pay fairly to its employees. Compensation & benefits, which are given to the employees of The Bank of Punjab are mentioned here. Categories of Employees for Compensation & Benefits These are the categories of staff members, which are compensated according to the category & pay scale. Category A 1. All executive (Regular / contract) Category B 1. All officers of the BOP (Regular / contract) Category C 2. Administrative Assistant 3. Telephone Operator, 4. Messenger 5. Driver, Electrician 6. Chowkidar, Liftman 7. Sweeper

Types of Compensation & Benefits in BOP A. Wages & Allowances i. Basic Pay Basic pay is given to each employee according to its pay scale in any grade according to seniority. ii. House Rent House Rent is given to each employee @ 40% of its basic pay.

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iii. iv. v. vi.

Conveyance Allowance Conveyance is given to all staff members @ 10% . Utility Allowance Tea allowance is given to all staff members @ 10%. Medical Allowance House Maintenance Allowance is given to all employees @ 10%. Cash Handling Allowance This allowance is awarded to those employees, which are working with cash on cash counters for cash collection.

B. Loans & Advances i. Five Months Salary Advance The facility of five Months Advance is available for all kind of employees. Two months advance is granted to the employees & it is deducted from their salaries with 36 installments without any interest. ii. Transport Loan Transport Loan is granted to all interested employees to purchase the Motor Cycle and Motor Car. It has very little interest rate with 90 installments. iii. House Building Loan This loan can also be taken by all employee of Category. This loan is granted to purchase the plot, build the house and renovation of the house. iv. Computer Loan This loan is granted to those employees who want to purchase a computer for their home use. v. Provident Fund Loan The Bank of Punjab deducts a specific amount in the account of Provident Fund Contribution and a profit at the end of a year is given to all employees at a specific rate. Any employee can take loan from his own contributions. C. Leaves i. Earned Leave

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The Bank of Punjab awards 30 Earned Leaves in each year to all employees. These leaves can be availed with full pay and if any employee does not avail these leaves then these are accumulated in the earlier earned leaves. ii. Sick Leave Sick leave on full pay is accumulated at the rate of 1/18th of the period spent on duty subject to a maximum accumulation of 4 months at a time. iii. Study Leave without Pay Study Leave without pay up to a maximum of two years may be allowed to an employee who has completed at least 5 years continuous service in the Bank. iv. Casual Leave Casual leave may be granted up to a maximum 10 days in each calendar year. These leaves are not accumulated in the leave account. v. Maternity Leave Maternity leave is granted to a female employee for a period not exceeding twelve weeks on one occasion. vi. Extraordinary Leave This leave is granted to an employee at the discretion of the competent authority when no other leave is due to him. This leave is not exceeded from 3 months. No pay or allowances are paid during the leave. vii. Leave with Holidays When the day immediately preceding the day on which an employees leave begins or immediately following the day on which his leave expires is a holiday or one of a series of holidays, the employee may prefix or suffix the holiday or holidays to his leave with prior permission. D. Medical i. Hospitalization This facility is available for all staff members in the kind of any serious illness, injury or operation. All treatments, medicines and other medical facilities in the premises of hospital are provided on the cost of the

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Organization. Semi Private room is granted to Category A employees and Private room is granted to Category B employees. ii. Laboratory & Clinical Tests All laboratory & clinical tests are free of cost. These test are allowed with the approval of medical department or a physician. iii. Consultation with Specialist All consultations with specialist are paid as per policy announced by the Bank. iv. Vaccination The facility of Vaccination for Hepatitis B is also available for all kind of employees. v. Special Medical Facilities With the prior approval of competent authority any employee can avail special medical facility for the treatment of Heart Bypass or other expensive treatment. E. Other Benefits i. Eid Bonuses One basic pay is paid as bonus on Eid ul Fitr and one basic pay is granted as bonus on Eid ul Azha. ii. Performance Bonuses This bonus is awarded to those employees who have exemplary performance during the year and have a good Annual Performance Report in the same year. iii. Long Service Awards A lum sum one time cash payment is made to those employees which have completed their 20, 25, & 30 years service in BOP. iv. Qualification Awards Qualification award is given to all those employees who have passed their higher qualifications during the service. This award is added in promotion recommendation forms with maximizing the scores. v. Hajj Scheme

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Hajj scheme is applied with draw & winning employees are sent for Hajj. vi. Gratuity Employees having option of Gratuity instead of Pension are entitled gratuity leaving the Bank on such scale and subject to such terms and conditions as may be approved by the Board from time to time. vii. Provident Fund Contribution Provident Fund is deducted from the salaries of employees according to the predefined ratio and annual profits are announced on these contributions. After retirement Provident Fund is returned with profits. viii. Travel Allowance/Daily Allowance Traveling expenses are admissible for any employee traveling on Banks duty on tour or transfer. Moreover, Daily Allowance is also given if employee is on official tour. ix. Group Insurance The BOP provides group insurance to its employees with a very low rate to cover its employees on such terms and conditions as may be approved by the Board time by time. x. Uniforms Uniform is provided to only C category of employees: xi. Winter Uniforms Summer Uniforms Shoes Caps

Special Duty Allowance The Gunman who perform duty on public holiday is allowed to take special duty allowance according to the policy of the Bank. Career Management of BOP

Career is the occupational positions a person has had over many years. Career Management is the process for enabling employees to better understand and develop their skills and interests and to use these skills and interest more effectively. The Bank

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of Punjab provides efficient Career Management chances to its employees in the form on mentoring, job rotation, promotions, transfers, counseling and training etc. Employee Job Changes The job rotation of an employee is part and parcel of the service as and when needed/required by the management. The services of the employee may be transferred from one department to another as per service regulations. However, the consent of the employee in question retaken or his tendency to do specific work for job is kept in mind before issuing the office order in this respect. Basically after each three years period the services of the employee may be transferred from one department to another. The skill and expertise of the employee is also conceded for his posting in the specific department. Moreover, a column in the confidential report of each employee also indicates either the job is suitable to the employee according to his or her aptitude. The data is also collected in this concern and action is taken as per three preferences of jobs offered by organization to the employee in case of dissatisfaction. Job enrichment & job enlargement is also the part of BOP. Because skilled workers are required by The Bank of Punjab and workers are short for specific jobs so employees are trained & skilled through job enlargement & job enrichment. Job Changes within BOP Promotions Promotion is a kind of evaluation in the career of any individual/employee as and when he or she fulfills the criteria for promotion that employee is promoted to the next grade. In The Bank of Punjab, the following factors are taken in account to promote any employee:1. Seniority 2. Suitability 3. The collective numbers of three PACE (Performance Appraisal & Competency Evaluation) 4. Education (Formal education + Professional education)

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The promotion committee is consisting of mainly the departmental heads of the zone. Promotion Committee awards numbers to the qualifying person, given by each departmental heads for suitability. The departmental head gives the highest numbers to the qualifying employee. Transfer Transfer is reassignment to similar position in other parts of the firm. In BOP, transfer is a part and parcel of service of an employee as and when the management wants to transfer the services of an employee to some other Department or to another place of posting. Transfer is done by an Office Order of Personnel Department of BOP. The transfer committee evaluates the need of Transfer of Services the employee to achieve the corporate goal of the Organization. Once the competent authority gives ascent/approval of the transfer of an employee or group of employee from one department to another or one place of posting to another within his jurisdiction the transfer takes place. The note of such order is approved by the competent authority after consultation with the departmental heads concerned other than the Personnel Department. An Office Order is issued after approval from competent authority. Demotion When an employee acts misconduct and the charge is established keeping in view the lenient action rather than dismissal or termination the Competent Authority (in case of officers) that is i.e. that is Chairman of the Bank and in (case of staff members employee grade 1 to 7) the Zonal Head may take action against the employee in form of demotion / step down from the existing post to the lower. Separations There is one condition of The Bank of Punjab service rules and regulations that an employee may leave the organization (in case of officers) with tree months notice or with one month notice along with depositing one month salary in The Bank of Punjab accounts. In case of staff members the same is applicable.

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Layoff Where in the opinion of the competent authority a person in Government or Private Organization is inefficient or has ceased to be efficient for any reason or is guilty of being habitually absent from duty without prior approval or guilty of misconduct or corrupt or may reasonably be considered as corrupt or engaged or is reasonably believed to be engaged in subversive activities or guilty of discloser of official secrets can be laid off from the service. The competent authority, after enquiry by the enquiry officer, may by order in writing lay off or remove such person from service. Before passing an order, the competent authority shall give him a reasonable opportunity of showing cause against that action within 7 days or within such extended period as the competent authority may determine. Termination The appointing authority of The Bank of Punjab may terminate the service of a confirmed employee by giving him three full months notice in writing without any reason. The appointing authority may terminate the service of an employee, employed on probation or on a temporary basis at Seven days notice in writing without assigning any reason. The service of any employee who has absented himself from duty unauthorized for more than Ten days, may be terminated without any notice or compensation. Resignation A confirmed employee may resign from the service of the Bank by giving Three Full Months notice in writing. The Resignation shall become effective on the expiry of the said period of notice. An employee who is on probation or has been employed on a temporary basis may resign his service in the Bank at Seven Days notice. The resignation shall not become effective unless accepted by the appointing authority. On such acceptance the service of such employee shall stand discontinued.

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Retirement An employee shall be retired from service on attaining the age of Sixty years. An employee may apply for retirement from service after completing 25 years of service as the competent authority may after review of the case by the Committee constituted by the Board of Directors.

Labor Management Relations

Industrial relations are the processes by which human beings and their organizations interact at the workplace to establish the terms and condition of employment.

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Union Management Agreements are as under: Working conditions Recognition and union membership Rates of Pay Working hours and overtime Holidays Vacations Seniority Adjustment of complaints and grievances Discharge of employees Management Functions Safety and Health

Negotiation of an agreement is a process of collective bargaining and in collective bargaining unions are pattern setters in establishing wage level, fringe benefits and working conditions. Union Membership Labour Management relations are relating the needs of people. Employees often join unions in order to have a method of collectively resisting actions of management. When employers cut wages, pay low wages, dismiss employees, unpleasant working conditions, employees may resist by joining unions. Union employees may petition management for changes and if unsuccessful they may resort to concerted work stoppage a strike.

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Labour Management relations are concerned with the relationships that exist between those persons who perform work and those who supervise it. Supervisory relations involve the exercise of authority and the use of power. So, Labour Management relations involve the use of power by managers and employees.

When there are disagreements and disputes, the unrestrained use of power can result in disruptive conflicts. In some cases, the conflict imposes harm only on the employer and the workers immediately involved. In other cases, the broader community may also suffer loss. Collective Bargaining Collective Bargaining is a process by which management and unions establish terms and conditions of employment. The process is bargaining because it involves give and take, the making of contract. Labor Management Negotiations Labour management negotiations involve three major participants. 1. 2. 3. Union Management Employees

Conducting A Strike

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When no decision is made between union leader and negotiating committee to solve the problems, then great influence by union leaders to enforces workers to gather for a strike. A strike has its own dynamics. It is called simply to bargain demand. Its a pressure tactic. Strikes occur when employees refuse to work until changes are made in compensation or in conditions of work. Settling Disputes Mediation Strikes are a form of open conflict which most people wish to avoid. When a strike begins, in consequences a number of steps are consider try to resolve the disputes. Mediation is a major form of intervention intended to resolve disputes without strikes. Mediation is a process by which a neutral party attempts to help disputing parties reaches a settlement of the issues that divide them. So, mediation is a process of persuading the parties to reach an agreement. Arbitration Arbitration is a process by which an answer is provided for issues in dispute. Whereas, the focus in mediation is on bringing the parties to some agreement; the focus in arbitration is on what the agreement should be. Handling Grievances A grievance is an alleged violation of the rights of workers on the job. One of followings can cause grievances:-

As a violation of the collective bargaining agreement

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As a violation of federal / state law As a violation of past practice As a violation of company rules As a violation of managements responsibility

Grievances ordinarily arise under the provision of a collective bargaining agreement. Grievance Procedure To settle disputes arising during the period of the agreement To establish an orderly method for handling disputes To provide unions role in processing the grievance of a single employee

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SWOT Analysis (HRM Process) of BOP

Strengths Salaries & all incentives are paid at time to its employees. Employees are satisfied with timely payments. The Bank of Punjab has good working conditions, e.g. proper temperature in summer & winter through air conditioning or heating system. Drinking water, toilet, and other relevant facilities are properly available. Employees have job security. Employees have legal rights to appeal against any organizational decision. Labor union is also present according to the international labor standards & rules. Medical facilities are available for all kind of employees without any discrimination. There are various kinds of benefits available in The Bank of Punjab which is not available in other peer or governmental organizations. Outside candidates have attraction in the job of BOP. There are two holidays in a week. Moreover, it is not a problem to avail any leave because permission is easily given except some critical situations. Weaknesses Every organization has chances for improvement in all areas. The Bank of Punjab has strong infrastructure but also have many weaknesses in the system. The weaknesses which were found during the study are discussed here: The first weakness in BOPs HR department is that it has very long organizational structure. Any work regarding department communication has to go through stepwise from Executive Officer to General Manager, takes huge time to complete Though planning is made for forecasting of the expanses to be incurred in each head but forecasting is treated just as forecasting. It is just based on the fake planning, which is not based on concrete figures. Therefore the conclusions of the planning may be fit or misfit.

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In BOP, though training academies have been working since long time but the objectives of the training could never be achieved. The latest audio visual aids are not used properly and only the documentary and verbal lectures are delivered.

Rating of an individual along with (IQ) is not evaluated properly and the same techniques are used for all kinds of individuals having different mental capacities.

The employees are not undergone through various tests and training to fulfill specific objectives from them. For example the cashier is not properly equipped with technique to collect cash payments.

The supervisor has only the right to write down the performance of his subordinates, but no subordinate has been given the right to expose the non professional and false approaches of his seniors which are actually done in the modern countries where subordinates also sketch the pictures of his boss in words.

The favoritism and biasness cover the whole procedure which does not provide the actual picture or employees performance. Those employees who have been serving the organization since long on some technical seats are given another assignment in lieu of the existing assignment so that the working hazard may not feel to the Management and the golden rules of changes make the individual golden is ignored.

Similarly, such seats which have monetary benefits rather than the general or given to some favorite ignoring the main factor of right personnel for right job. This practice not only affects the output of the organization but also discourage the motivated employees.

The cycle of promotion is not initiated after the specific term/period. The expectations of motivated employees affect in this way regarding career management.

Computers are used partially in BOP. Computer is not used in all area of working due to which extra manual efforts have to do and lot of errors in working take place.

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Business of The Bank of Punjab is increasing day by day but no forecasting has been done to tackle the future needs of Human Resources and other needs. External candidates are appointed for specific jobs, skilled & qualified internal candidates are ignored. There are lot of Professional qualified employees are working in clerical seats. These employees are ignored when new jobs are created.

Employment selection process also has some ambiguities. In selection process, political & approach factors are involved. Union has great impact on all factors. Sometimes wrong practices occur due to the interference of CBA e.g. promotion on qualification & skills basis. Union forces the management to transfer any employee who has affiliation with any other group.

Some cash & facilities are not being provided to those employees who are qualified to receive. These facilities are ceased without issuing any notice or circular. For example, cash awards on passing IBP Stage I, II & III as it is mentioned in the service rules.

Skilled & qualified employees are leaving the organization joining other organization due to all the factors discussed. The Bank of Punjab has very long organizational communication procedure. So work regarding Personnel has to go through stepwise from Executive Officer to General Manager, takes ample time for the results/output.

Sometimes a required criteria is not fulfilled in recruitment from internal sources and internal sources are given priority on external sources where a competent person is required from external sources.

Sometimes union and authorized officer oblige some employees neglecting the other qualified employee. This discrimination has been seen in advances, transfers, even in promotions.

Proper training & trainer is not available. Training is always provided by local officers and any expert is not invited for training.

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Many officers use bias appraising any employee. Appraisal reports are not properly written in some departments. The departments where working is on peak may have less rating than those departments which have less working.

Employees are not properly trained to transfer any employee form one seat to another. Management wants to promote or want to give priority to the qualified employees in incentives & promotions but union interfere to revoke this practice to implement seniority for incentives.

A hard working employee is given more and more work. Non working employees are not given any work at all. Low increase in salaries for the last four years so employees are becoming demotivated.

Opportunities The Bank of Punjab is a sound financial organization so external candidates are much interested to be the part of the organization. The Bank of Punjab has huge field force due to this motivation. Due to its huge field force, it has big market share compare to other competitors. There is no strong competitor in the market so The Bank of Punjab can expand its skilled field force to increase the business. Threats New insurance organizations are coming in Pakistan from outside and these companies are motivating the field force & skilled office employees of The Bank of Punjab with high incentives. Some sales people do fraudulent activities in the market and good will of The Bank of Punjabis suffering due to this practice. These sales people deceive the policy holders taking money without receipts. Many new Insurance and Takaful companies have started the business in Pakistan so these companies are gaining the market share and sales peoples. The Bank of Punjab has less skilled & qualified sales people than other competitors. The Bank of Punjab has not any proper standard to hire any sale personnel but other companies have.

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Recommendations

During my internship as student of Business Administration in The Bank of Punjab Abdul Hakim, I have found various areas which can be upgraded applying new research approaches to be a standardized organization at international level. The areas, which can be improved and the areas which must be improved are discussed here: The Bank of Punjab should amend its structure to make quicker its communication system from lower to upper. Communication takes a long time to complete and it creates hurdles for quick & efficient working so communication system should be improved. Proper and qualified field force should be hired so that good will of The Bank of Punjab may not suffer due to substandard personnel. All office & field employees should be properly trained according to their fields because improper training creates expensive problems. Training is provided to the sales people but not to the office employees. These office employees should also be trained & equipped with new skills so that coming business cab be properly managed. HR planning should be done properly because business is increasing day by day but recruitment of office employees has not been done. HR requirement should be forecasted according to the increase of business so that future business may be controlled properly. For HR forecasting, business data can be collected from computer department. Internal Candidates should be given priority for any seat if desired skills for that seat are available because an experienced employee can run that job properly. Unfair practice in recruitment should be avoided so that wrong candidates may not be selected. Employees should be evaluated and appraised fairly. A fair policy should be designed to appraise any employee so that proper & skilled employees can be compensated according to their performance. An ambiguous appraisal system may create demotivation.

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Incentive should be attached with the performance of an individual so that output of the work and organization may be increased. Performance standards should be set and these standards should be the basis for compensation.

Employees should be posted on the jobs according to their skills and knowledge without taking the pressure of any force. Right employees produce extra output if they are placed at right place.

Promotion criteria should also be changed. Some promotions should be done on seniority basis and the others should be done on the qualification and skills basis so that right people may be promoted for the betterment of the organization.

Management should not accept the pressure and interference of the union in a right and meritful practice. Sometimes, trade union of The Bank of Punjab creates hurdles to take right decisions.

The Bank of Punjab has huge volume of business and profit so salaries of employees should also be increased with the increase in business because this business increase has employees participation and these employees should be compensated with salary increase. Employees can not be motivated with proper compensation.

There are a lot of weak competitors in the market so The Bank of Punjab should prepare for future competition. The Bank of Punjab should design its policies so that future challenges may be tackled. Moreover, Takaful (Islamic Insurance) business is becoming popular in Pakistan so The Bank of Punjab should start Takaful branch also.

New technology should be used to improve the performance and output of the work and work force. Computers should be used to perform all kind of jobs that can be performed using computers. In this way labor & time will be reduced. Moreover, latest software can be used to perform all kind of activities.

The Bank of Punjab has best database software to run its transactions but it has not been utilized properly. The organization should set its system online for real time information and transactions. The organization has to bear extra expenses and efforts due to unavailability of online system.

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Conclusions

After completing my internship in The Bank of Punjab, I have concluded as a student of Business Administration that: The theoretical concepts and knowledge is just theoretical but the practical working according to those concepts is very important. So theoretical knowledge should be applied in the practical situations to well understand the business environment. The study knowledge is very much helpful to restructure any organization and this knowledge is crucial for HR Planning and forecasting. Now I am able to understand the Human Resource Process because I have the relevant theoretical knowledge and I have also gained the practical knowledge that how employees recruitment is done selecting right employees from internal and external sources. The training is very much crucial for effective and efficient output. Without proper training any employee cannot perform well according to the standards of any organization. Moreover, training avoids any expensive losses. The organization appraises its employees to increase the quality & quantity of the work. If the appraisal system is not fair then various problems may occur in the form of decline in output of any employee as well as the output of the organization. Compensation is the core of any organization to run its business and to remain in the competitive market. Proper compensation is crucial to motivate its employees. I have concluded during my study that employees of The Bank of Punjab are becoming demotivated due to low increases in salaries for many years. Employees neglect their work and take less interest in their jobs. Some employees are working on the same seats for many years. Some employees are transferred most frequently and others are placed at proper places. These kinds of situations create severe problems. According to my theoretical as well as practical study, I have found that employees should be placed on jobs according to their knowledge and skill about the job. Moreover, employees job rotation is the best practice to train any employee.

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References & Sources

Mr. Muhammad Amin Butt Manager Regional Office, HR Mr. Muhammad Idrees Unit Head (Commercial Banking Group) Mr. Tanveer Elahi Unit Manager (Consumers) Miss: Sadaf Saleem Senior Relationship Manager (Consumers) The Bank of Punjab Employees (Service) Rules & Regulations The Bank of Punjab Service Rules Manual Human Resource Management Tenth Edition Gary Dessler Compensation Management Handbook Mathew J. Deluca Labor Management Relations Fifth Edition Daniel Quinn Mills Strategic Management Eleventh Edition Fred R. David

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Organizational Behavior Twelfth Edition Stephen P. Robbins, Timothy A. Judge Management Development Joseph Prokopenko

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1- Annexure A 2- Annexure B 3- Annexure C 4- Annexure D 5- Annexure E 6- Annexure F 7- Annexure G 8- Annexure H 9- Annexure I 10- Annexure J 11- Annexure K

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