ztbl research report

8/9/2019 ZTBL Research Report

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EXECUTIVE SUMMARY

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan

(ADBP) is the premier financial institution geared towards the development of agriculture

sector through provision of financial services and technical know how. The restructuring of

former ADBP is being carried out with the aim to uplift the agriculture and rural sector by

raising farm productivity, streamlining the institutional credit and increasing income

generating capacity of the farming community. ZTBL was incorporated as a Public Limited

Company on 14th December, 2002 through repeal of ADB Ordinance of 1961.

The report is not an expert view; this is only an internship report of my practical experience in

the Zarai Taraqiati Bank Limited which I have recently completely in the month of July and

August 2009. The report consists of the primary and secondary data which I have collectedduring the period of internship at ZTBL head office Islamabad from different sources.

During the internship, I learned some practical aspects of the organization apart from the

theoretical study. The internship report comprises of five chapters. In chapter one I give brief

introduction, purpose, scope of study and methodology used in collecting the data.

In chapter two, discussing an over view of the banking sector of Pakistan, role of ZTBL in

Pakistan, budget review if ZTBL, the hierarchical structure of the organization and the

schemes offered by the bank to its customers.

In chapter three, the overall organization and its prescribed functions which are being

performed by the bank are discussed.

In chapter four, the things related to my field human Resource (HR) are Actual and

prescribed functions of ZTBL, Summary of the Whole Organization, current number

of staff, Training Opportunities to Employees, Workload on Employees, Salary

structure, Promotion criteria, Incentives & motivation, Communication system, Filing

system, Morale of staff, Physical facilities, Performance Management, Procedure of

Performance appraisal, Performance appraisal form and policies department of ZTBL.

In chapter five made the SWOT analysis (strength, weakness, opportunities and

threats), PEST analysis (political, economical social and technological) and findings

and recommendations for the organization are given

(Brief history of ZTBL,

2009)

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Chapter one:

Introduction

1.0 Background of Study

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan

(ADBP) is the premier financial institution geared towards the development of agriculture

sector through provision of financial services and technical know how. The restructuring of

former ADBP is being carried out with the aim to uplift the agriculture and rural sector by

raising farm productivity, streamlining the institutional credit and increasing income

generating capacity of the farming community. ZTBL was incorporated as a Public Limited

Company on 14th December, 2002 through repeal of ADB Ordinance of 1961.

The new corporate structure redefines the bank's status as a public limited company registered

under companies Ordinance'1984 with an independent Board of Directors which aims at

ensuring good governance, autonomy, delivering high quality

ZTBL is a key R.F.I of Pakistan providing affordable, rural and agriculture financial/non-

financial services to the rural Pakistan, comprising 68 % of the total population. The Bank

through a country-wide network of 341 branches is serving around half a million clients

annually and over one million accumulated account holders with the average loan size of

around Rs.89,000 serving 65%, 31% & 4 % of subsistence, economic and large growers

respectively.

The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as

of 31.12.2005, with a nation-wide working strength comprises 5500 employees. The share of

ZTBL in total national institutional agricultural credit remains around 35%.

ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through

repeal of formal Agricultural Development Bank of Pakistan Ordinance of 1961. Thereby

transforming the bank as a corporate entity to serve as a R. F.I

(Brief History of ZTBL,

2009)

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1.1 Corporate Vision

Dedicated to serve the needs of the farming community, by delivering financial products and

technical services on a competitive and sustainable basis, in a convenient, efficient and

professional manner, leading to success of the Bank and the farmers.

(Brief history of ZTBL,

2009)

1.1.1 Corporate Mission

To play effective role in the promotion of economic growth, by enhancing the availability of

credit to the agriculture sector, through reliable access to sustainable financing, special

lending programs, technical assistance, and other products & services, and to promote career

development opportunities for increasing professionalism and technical proficiencies of the

employees.

(Mission of ZTBL,

2009)

1.1.2 Corporate Objectives

Develop and operate as a financially and operationally sustainable R.F.I of the

country.

Assist rural community, particularly the small farmers, in raising their productivity

and income levels through timely delivery of credit, advisory and ancillary services.

Build ZTBL's image as a proactive, client friendly, financially & operationally

sustainable with indigenous product deployment.

Establish and provide backward and forward linkages to strengthen agri. value added

commodity chains.

Engage in public - private and wholesale - retail partnership to deepen outreach and

reduce operating cost.

To function as a rural commercial bank to mobilize rural capital formation and to

commercialize the agri-sector by delivering the true value of credit to the client.

Provide a wide range of risk insurance products to its clients.

Open up it venues of operation to Domestic & International Banking Industry to avail

comparative advantages.

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Transformation of ZTBL to R.F.I of the country and road to excellence.

Healthy and well-functioning rural finance markets are directly related to achieving

the two key national policy objectives of accelerating rural/agriculture growth and

reducing poverty. The realization of these objectives depends on the simultaneity of

developments in rural finance and non-financial markets to foster the creation of

diverse sources of rural finance to build sustainable financial institutions, and

stimulate products and capital flows in the rural sector. For this, rural finance must be

seen as an integral part of equitable development within a framework of macro

economic stability. The ongoing corporatize restructuring lays the basis for

fundamental reforms for rural finance market development.

The recurring financial drain, pursuing the old rural finance paradigm and thenarrowing fiscal space have also promoted a shift in Governmental strategy that now

seeks viable intermediaries for enhancing outreach.

For the majority, access to affordable rural financial services is also important to

enable them to compete in the post-World Trade Organization scenario. Inability to

compete because of high financial costs could reduce income of the majority of

farmers and rural clients, particularly the small and subsistence clients. Lack of

access to affordable rural financial services will also prevent the clients from

switching to non-farm activities.

The ZTBL restructuring plan covering the following; (i) governance: establish an

environment that facilitates good governance and accountability; (ii) systems:

modernize operations through use of technology, networking, and communication

tools; (iii) business processes: streamline products and delivery systems so as to

reduce transaction costs, simplify operations, and increase outreach; (iv) products and

services: introduce products and services that are financially economically viable; (v)

human resource development: improve standards and skills of management and staff

and strengthen training capacity; and (vi) IT: establish new hardware and software

platform to support MIS, accounting system including forensic accounting, and risk

management functions.

The reforms shall establish ZTBL as a key R.F.I of the country, aiming to outreach

annual rural clientele to 600,000 by the end of year 2008. By expanding its private

sector role, the bank aims to establish network of high tech rural and agri. financial

services through intermediations under public private participation and whole-sale

-retail lending mechanism. Zarai Taraqiati Bank Limited (ZTBL) erstwhile

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Agricultural Development Bank of Pakistan (ADBP) is the premier financial

institution geared towards the development of agriculture sector through provision of

financial services and technical know how. The restructuring of former ADBP is

being carried out with the aim to uplift the agriculture and rural sector by raising farm

productivity, streamlining the institutional credit and increasing income generating

capacity of the farming community. ZTBL was incorporated as a Public Limited

Company on 14th December, 2002 through repeal of ADB Ordinance of 1961. The

new corporate structure redefines the bank's status as a public limited company

registered under companies Ordinance'1984 with an independent Board of Directors

which aims at ensuring good governance, autonomy, delivering high quality.

(Brief history of Ztbl,

2009)

1.2 Purpose of the Study

The importance of practical orientation to the organizational setup plays a vital role to

enhance the skills and knowledge of a student. The present study aims to shed the

insight of the organization (ZTBL) is to enhance the practical skills and knowledge

along with the theoretical study by making the analysis of strategies and its practices.

1.3 Scope of the Study

The scope of studying this organization is only to the extent of reviewing the policies

and practices of the organization that consists of:

1.3.1 Human resource management policies and practices

1.3.2 Financial management policies and practices

1.4 Methodology

This data consists of both qualitative and quantitative. The study utilizes primary and

secondary data:

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1.4.1 Primary Data

The first hand data, i.e. the data collected for the first time is called primary data.

Primary data for this report was collected through unstructured interview and

participative and semi-participative observation. The source of Primary data ispersonal interviews with the management and the head office personnels and my

personal observation in the branch.

1.4.2 Secondary Data

Secondary data is the one collected from other sources and already processed through

mathematical and statistical techniques. Secondary data is comprised of Annual

Reports of ZTBL, Banking Manuals relevant materials, relevant books and

Newspapers, website of SBP (state bank of Pakistan and ZTBL).

1.5 Organization of the Study

The organization of study is ZTBL (Zarai Taraqiati Bank Limited) and more

specifically the HR department and its operations.

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Chapter Two

2.0 Overall respective sectors in Pakistan

The quarter under review is marked with the significant translation of weakened

macroeconomic fundamentals on to the Pakistani banking system. The IMFs latest

projections estimate that world GDP is likely to decline by 1.3 percent during 2009, while

growth rate for Pakistan has also been revised down to 2.5 from 3.5 percent. Accordingly, theheightened credit risk transpired in significant increase in non-performing loans (NPLs) and

associated asset quality indicators. Besides, the slowdown in economy dampened the growth

rate of the banking system. However, banks largely maintained their resilience and registered

improvement in key solvency indicators. The stress test results show that due to

improvements in solvency position, the system maintains a strong resilience.

During the quarter under review, the asset base of the banking system passively grew by 1.6

percent. In the face of increased credit risk and resultant risk aversion on the part of banks as

well as the lack of demand for bank credit from private sector, the asset mix of the banking

system shifted away from loans and advances to risk-free govt. papers and govt. guaranteed

bonds of stock exchange. The loan portfolio (net) declined by 5.6 percent over the quarter

while investments in govt. papers increased by 20 percent. As the banks deposits remained

stagnant, banks had to resort to inter bank borrowings for financing the marginal increase in

their asset base.

Besides the decline in loans and advances, the curtailed repayment capacity of the borrower

also resulted in significant increase in NPLs (non performing loans), which registered an

unprecedented over the quarter increase of 21 percent. However, the rate of this increase was

not uniform among all banks, as a couple of banks contributed a substantial share of this

overall increase.

Moreover, this unusually high increase also encompasses the external audit review

adjustments for CY08. e.g. on account of subjective classification of loans rather than just

based on time based criterion. The key asset quality indicators witnessed significant

deterioration infection ratio deteriorated to 11.5 percent (9.1 percent in Dec-08). Since

major increase in NPLs occurred mainly in Doubtful category, which requires only partial

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provisioning coverage, the NPLs coverage as well as net infection ratios also deteriorated.

Accordingly, the capital impairment ratio i.e. net NPLs to capital, went up to 17.9 percent for

commercial banks, signifying that banks inability to recover NPLs and further deterioration

in their credit quality could impinge on solvency. Due to external audit review adjustments

for CY08 that were directly recognized in the un audited quarterly report of conditions for

Mar-09, the retained earnings as well as the equity registered a slight contraction that was,

however, more than covered by surge in revaluation surpluses on account of gains in

revaluation of AFS securities during the quarter. The eligible regulatory capital showed

improvements during the quarter, while shift in asset mix towards govt. papers reduced the

value of the risk-weighted assets. Accordingly, capital adequacy ratio improved to 12.9

percent (12.2 percent in Dec-08).

Since the large share of additional provisioning requirements has been recognized in retained

earnings through audited accounts for CY08, the earnings of the banking system for March-

09 quarter remained largely immune. Banks posted before tax profit of Rs26.2 billion (Rs93.6

for the year 2008 and Rs28 billion for Mar-08). The bottom line registered a more than

proportionate increase as compared with 2008 results, and baseline indicators of profitability

i.e. pre-tax ROA registered a slight improvement to 1.8 percent (1.7 percent for 2008).

Banks deposits remained stagnant during the quarter. After facing a significant deposit

withdrawal during Sep-Oct 2008, the banks succeeded in recouping the deposit and posted a

marginal increase by the end of Dec-08. During the quarter under review, banks efforts for

deposit mobilization were, however, largely muted by Central Directorate of National Savings

(CDNS) products, which offer higher returns and greater security. Nevertheless, due to

significant decline in loans and advances and increase in govt. papers the liquidity profile of

the banking system further improved during the quarter. The market risk profile of the

banking system also moderated. A strong recovery by the capital market made for a

substantial part of the revaluation losses and enlivened the banks interest in equity

investments. Interest rate risk also remained subdued. Interest rates gradually declined duringthe quarter, thus appreciating the value of fixed income securities while re-pricing

mismatches remaining within acceptable ranges.

Going forward, the impending economic slowdown and domestic securities issues may

dampen the growth of the banking system in coming quarters. Low demand for banks

advances and increased risk aversion on the part of banks will further shift asset mix away

from advances to Govt. papers. Banks will have to brace up their efforts for mobilizing the

deposits, which are still showing stagnancy in the latest post quarter statistics. In the third

week of April 2009, SBP cut the policy rate by 100 bps. Contrastingly, the interest rates have

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shown slight inch up in post announcement weeks as the credit demand for commodity

operations picks up. However, this rise also indicates normalization of market conditions and

KIBORs tendency to restore its parity with discount rate that was disturbed after last

quarters liquidity stress. Nevertheless, in line with SBP monetary policy of gradual easing

out, the interest rates are likely to remain relatively low.

The heightened credit risk will remain a fundamental area of concern for the banking system

in coming quarters. Nevertheless, the system is expected to remain profitable though the

levels as well as the pervasiveness of earnings among different market players will remain

constrained as compared to past years results. (Banking sector of Pakistan,

2009)

2.1 Over view of banking sector in Pakistan

Mar-08 Dec-08 Mar-09

Assets Growth 1.3 2.6 1.6

Advances growth 4.3 3.7 -5.6

Deposit Growth 0.8 3.8 0.03

Investments 6.8 5.2 20

Equity 0.7 4.2 1.5

Capital Adequacy Ratio 13 12.22 12.92

Capital to total Assets 10.4 10.36 10.35

NPLs to total loan 7.7 9.13 11.54

Net NPLs to net loan 1.3 2.48 3.86

Return on Assets (Before Tax) 2.2 1.73 1.84

ROE (Avg. Equity &Surplus (Before Tax) 20.7 16.74 17.7

Liquidity Assets/ Total Deposits 41.7 36.92 41.51

Advances to deposits ratio 72.3 75.94 71.69

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70

80

90

(State bank of Pakistan, Banking sector review, 2008)

2.2 Role of the Organization in Pakistan

Zarai Taraqiati bank limited plays a vital role in the agriculture as well as in economic

development of Pakistan. ZTBL is the only bank in the Pakistan which works for the up lift of

agriculture sector of Pakistan because 50% of Pakistans economy is based on agriculture

sector. Since the very inception the banks only purpose and focus is the development in the

agriculture sector of Pakistan.

The bank continued to play a significant role in financing farm investments to modernize

agriculture, increase productivity and raise farm incomes. The bank accorded highest priority

to fulfill the demand of small farmers with land holding under 25 acres. Ztbl alone serves

about half a million farmers annually and has a share of around 30% of the total institutional

agriculture credit.

The bank operates through a network of 35 zonal offices and 342branches and a team of 1269

mobile credit officers (MCOs) in the field. Since inception up to 31-12-2007, the bank has

disbursed loan amounting to Rs.481372 million. The bank so far has financed 488,630

tractors and 144.013 tube wells besides being major source of financing for farm inputs

including seeds, fertilizers, pesticides and insecticides. Priority was also accorded to the

provision of more credit for livestock, dairy farming. Poultry farming, aqua-culture and

financing of oil seed crops. The bank continued to channelize flow of credit through several

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financial schemes and delivery mechanism such as revolving finance scheme, sada bahar

scheme, one window operation, etc. under the supervised agriculture credit system. The credit

advanced for various purposes was instrumental in enabling the farmer to raise farm

production, increase yield, boost income and expand capacity.

(karim.Q.mehmood, personal communication, Aug 29, 2009)

2.3 Latest Budget Reviews of ZTBL (2007-08)

The pattern of disbursement in different areas is almost proportionate to the

agriculture potential of respective provinces/areas.

Accordingly, during the year 2007, the bank disbursed Rs.44, 327 million (79.3%) in

Punjab, Rs.7, 384 million (13.2%) in Sindh, Rs.3, 802 million (6.8%) in NWFP,

Rs.99 million (0.2%) in Balochistan, Rs.131 million (0.2%) in AJK and Rs.168

million (0.3%) in federally administrated northern areas.

0

44,327

7484

3802 99

province wise

disbursement of loan

Punjab

sindh

NWFP

balochistan

(ZTBL Annual report, 2009)



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2.4 HIERARCHY OF THE ZTBL

The designation in the Zarai Taraqiati Bank Limited is a true picture which shows

how the things are working properly. The powers and authority may differ at all levels

of the designations, but all the procedure is updated according to the desired needs of

the time. The bank has a larger burden of work in all the divisions but the proper

arrangements of officers make it possible to handle it at proper time. They all perform

key roles in making policy as well as the decision regarding the progress of bank.

(Vilklanova, P., Bernardin, H.J., Dahmus, S., Sims, R. (p.53), 1993)

Graphic representation of the hierarchy of the basic division of designations of the bank is

given below.

President

Senior Executive Vice President. (SEVP)

Executive Vice President (EVP)

Senior Vice President

Vice President (VP)

Assistant Vice President. (AVP)

Senior Officer.

Officers

Stenographers and clerical/non clerical staff



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(Organization structure, 2009)

2.5 Schemes Offered By the Bank to Its Customers

Zarai Traqiati Bank Ltd. apart from its core functional activity marked with

country based agri-business, has started to serve its valued customers by offering

lock

i) Sairab Pakistan Scheme

Water plays vital role to improve per acre yield. Out of total 31 million hectors

area of Pakistan, 22 million hectors is cultivated while 9 million hectors is

cultivable waste mainly due to non-availability of water.

ii) White Revolution Scheme

In order to modernize the dairy farming for increasing milk supply and

mitigate poverty in the country and improving the living standards of the rural

inhabitants, a strategic partnership between ZTBL and M/s. Pakistan Dairy

Development Company.

iii) Development Loans

Loans for purchase of items like farm machinery/tractors, irrigation, land

development, orchard/green houses, on-farm god owns/storages, dairy,

poultry, fishery, livestock farming and are recoverable within period

exceeding 18

iv)Production Loans

Loans for seed, fertilizer, pesticides, labor charges and POL etc. to grow crops

and vegetables including working capital for poultry, dairy, orchard, fishery

and are recoverable within 18 months.

(ZTBL, Annual Report, 2008)



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CHAPTER NO 3

3.0 Overall Organization and Functions of the Organization in

Pakistan

I worked at the ZTBL head office Islamabad and the head office defines the functions

of whole bank all over the country and also monitors and controls the functions. Some

of the departments in which I worked and are as under.

Human Resource Division

Human Resource Operations Department

Staff Relations & Welfare Department

Training & Development Department

Performance Management Department

Policy & Regulations Department

Legal Services Department

Business Development & Marketing Department

Branch Operations Department

Credit Division

Services Division



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Research & Planning Division

Recovery Department

3.1 Human Resource Division

Functions

Evolve and adopt measures to implement human resource strategy congruent

to Banks business strategy. Human Resource Strategy to contribute in areas

of employee

Motivation and career development through effective human resource

management systems (comprising of policies, procedures, programs and MIS)

in areas of organizational development; compensation and benefits;

performance management; training and development; recruitment and;

employee relations.

Provide effective human resource administrative services to management and

employees of the Bank.

Adopt measures for seamless operations of the Bank in relations to industrial

peace in the Bank. Thus to maintain a harmonious relationship with key

employee representative body.

Ensure across the board, training and development opportunities.

Identify performance gap and provide appropriate training solutions to

close/bridge these gaps.

Contribute positively to employee motivation through effective career

planning and development.

Ensure statutory compliance vis--vis all applicable employment laws.



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Overall responsibility of HR policies formulation, approval and

implementation. Maintain a Human Resource (Policies and Procedures)

Manual in a current state.

Adopt measures to attract, induct and retain the right talent from the market

into the operations of the Bank.

Adopt measures to ensure continued employee training and development.

Devise a system to monitor effectiveness of HR system and adopt measures to

close gaps/weakness in the system.

Identify risks proactively within human resource systems framework and

adopt measures to mitigate them.

Lead all organizational change initiative.

Ensure up-to-date employee knowledge and skills within human resource

function.

Overall responsibility of payment of retirement/severance benefits to

Employees reaching superannuation or separating under Golden-handshake

schemes or died during Banks service.

Describe job list of all the Divisions, Departments and field offices of the

bank, in consultation with the concerned quarter.

Conduct litigation on behalf of the Bank.

Manage defense on Banks behalf in service matters, recovery and other casesfiled before various courts of law.

Represent the Bank in courts of law and other fora.

Scrutinize and vet legal documents, agreements, house building & conveyance

advance documents and circular.

Take timely steps for preferring appeals, review and revision etc. against the

decisions of lower courts.



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Enlist advocates on panel and as legal advisors and determine their scale of

fee.

Provide legal opinion on various issues to all Divisions of the Bank.

Assist and provide material to Banks Counsel for preparation of case.

Establish good working relationship with employee representative body to

maintain industrial peace/harmony in the Bank.

Act as central point of contact for employee representative body.

Sanction House-Building, Conveyance Advances and other loans to

Employees as per policy and entitlement, and communicate policy decisions

regarding allocation/release of funds.

3.2 Human Resource Operations Department

Functions

Ensure that all employee service matters are handled professionally and within

the policy framework.

Overall responsibility of leave-management and pay fixation of all employees.

Contribute to employee motivation through application of compensation and

benefits, promotion and transfers and posting policies frameworks.

Recruitment and selection of the best talent in the market.

Organize work in various units of the Department to ensure that performance

metrics set for the department are achieved.

Set performance parameters for the units and consistently monitor

Performance of units against the given performance metrics.

Prepare departmental budget and monitor expense against budget.

Ensure that all relevant employment laws of country are complied with.



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Ensure that all change management initiatives of the Bank are implemented

down the line.

Ensure that confidentiality is maintained in sensitive HR issues to ensure

complete trust of management and employees.

Perform administrative functions for the Department such as sanction of

leaves, approval of tour programs etc.

Overall responsibility of implementation of HR policies and programs in areas

of employee pension management. Obtain feedback on relevant policies,

procedures and programs to recommend improvements.

Establish human resource requirements through a human resource plan

covering qualitative and quantitative aspects i.e. ensuring the right man for the

right job and employee headcount/ manpower numbers.

Grant permission for purchase/sale/gift of movable/immovable property.

Issuance of NOC for passports.

Grant of permission to employees to securing debts/guarantee in their private

capacity to the pecuniary obligations of another employee and marriage with

foreign national.

Process the cases for grant for permission for further studies and appearance in

examination.

Verify particulars of officers/ staff for staff advances.

Verification of credentials of newly appointed Officers and above.

Police verification of antecedents and character.

Process awards/sanction of increments on improving qualifications to all


Process cash awards on passing of DAIBP examination.



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3.2.1 Employee Service Matters Unit

Manage all issues related to employees seniority.

Manage all promotion, move-over, switch-over related issues.

Maintain declarations of assets and liabilities of all employees of the Bank.

Dispose off service matters received from officers and other employee

representative bodies.

Manage the process of sanctioning of all kinds of leaves including Ex-Pakistan

Leave as per policy.

Process applications of employees seeking any outside employment and grant

of lien, thereof.

Process counting of pervious service including settlement of accounts with

pervious employer.

Maintain personnel files and record of all employees.

Prepare replies to parliamentary questions and queries related to employee

service matters.

Liaise all employee litigation cases in respect of promotion, move over/

seniority and other employee service matters with Legal Services Department.

Issue all types of Service Certificates to employees.

Any other individual service matter case as per policy/ instructions of the

Bank.

Issue clearance certificates for sanction of employees confirmation, Ex-

Pakistan leave, foreign tours etc.

Process all resignation and severance of employment cases.

Sanction Education Allowance to Clerical/Non-clerical Staff.

Grant permission for purchase/sale/gift of movable/immovable property.



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Grant of permission to employees to securing debts/guarantee in their private

capacity to the pecuniary obligations of another employee and marriage with

foreign national.

Process the cases for grant for permission for further studies and appearance in

examination.

Verify particulars of officers/staff for staff Advance.

Verification of credentials of newly appointed Officers and above.

Police verification of antecedents and character.

Process awards/sanction of increments on improving qualifications to all


Process cash awards on passing of DAIBP examination.

3.2.3. Transfers and Postings Unit

Ensure compliance with transfer and posting policies and procedures of

the Bank, thus monitor employee tenure at a particular position and place

of posting and initiate transfer requirements.

Justify transfer and posting requisitions.

Provide brief/detailed rsum of employees, and qualification-wise lists

for postings and transfers.

Establish human resources requirements through a human resources plan


right job and employee headcount/manpower numbers.

Ensure compliance to transfer and posting orders and handover and

takeover procedures of the Bank.



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Maintain and monitor yearly manpower budget and organization chart.

Recommend initiation of disciplinary action for non-compliance with

posting orders.

3.2.4 Compensation and Retirement Benefits Unit

Process cases of retirements of employees on attaining the age of

superannuation and family pension cases.

Grant of pension, gratuity, Leave Preparatory to Retirement (LPR).

Decide on all LPR related cases.

Notify dates of retiring employees annually.

Obtain requisite No-Demand-Certificates (NDCs) of employees proceeding on

retirement.

Maintain a database of Accumulated Leave Accounts and monitor compliance

with policies and procedures.

Calculate pension to prepare Pension Payment Order (PPO).

Overall responsibility of processing payments under Golden-Handshake

schemes as and when announced.

Authorize change of pension disbursing Branch on the request of pensioners.

Process options on employee separation schemes and to prepare and submit

Para-wise comments on the petitions filed by the optees after exercising

option/relieving from the Bank service.

Pay fixation of all Officers & above.

3.2.5 Recruitment and Appointments Unit



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Review manpower requirements of the bank in the cadre of officer and above,

establish need for additional headcount/manpower and recommend

accordingly. Also ensure that Banks human capital is adequately utilized and

adopt measures to regulate HR need with business volume and capacity.

Overall responsibility of contract management for regular, contractual, sub

contractual, on-deputation and firm hiring, this also includes drafting of

contracts, obtaining legal opinion and advice.

Keep current internal and external job application databank.

Prepare internal and external job advertisements and obtain requisite approvals

and coordinate with department/unit concerned to place advertisement.

Screening of job applications to short listed candidates.

Prepare interview assessment forms for line management consumption and

arrange for logistics for selection interviews. Obtain requisite approvals on

selected candidates.

Prepare job offers and employment contracts.

Notify employees joining and monitor probationary period of all new

inductees. Process decision on shortening or extending of probationary period.

Arrange for verification of character, academic and professional/ employment

records of all new inductees.


Provide feedback on policies related to Unit to mitigate weakness and initiate

improvements.



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3.3 STAFF RELATIONS & WELFARE DEPARTMENT

Functions

Establish good working relationship with employee representative body to

maintain industrial peace/harmony in the Bank.

Act as central point of contact for all employee representative body.

Resolve conflicts professionally to the mutual advantage of the Bank and

employees.

Counsel employee to resolve grievances/issues/conflicts amicably.

Ensure statutory compliance in dealing with CBA.

Contribute positively to employee motivation by organizing various employee

participatory events.

Process employee House Building, Conveyance Advances and other loans as

per approved policies.

Overall responsibility of administration of Employee Welfare Trust Fund and

administration of financial relief to eligible employees.

Prepare departmental budget and monitor expenses against budget.

Ensure recovery of dues from ex-employees.

Organize work in various units of the department to ensure that performance


Perform administrative functions for the department such as sanction of leave,

approval of tour programs etc.

Ensure presentation of gifts to retiring employees.



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3.4 TRAINING AND DEVELOPMENT DEPARTMENT

Functions

Assess training and development needs of all employees in the Organization.

Identify best possible training and development innovations/solutions.

Ensure that the Bank possess trainers who are adequately trained to design,

deliver and validate training and development programs.

Ensure that all requisite logistic support is available to the training academies.

Establish an environment for trainees conducive to learning.

Liaise with all major training agencies, trainers and vendors to the Banks

advantage.

Supervise various units to ensure achieving performance metrics set for the

department.

Monitor designed performance parameters for the units against the set

performance metrics.


of training and development and career planning.


Ensure that change management initiatives of the Bank are implemented at all

tiers.

Provide guidance to units in resolution of problems and complaints.

Evaluate overseas training programs for their suitability vis--vis ZTBL,

propose nomination and finalize cases accordingly.

Manage all aspects of donor agencies funded training and development

initiatives.

Plan, arrange and conduct induction courses for new inductees, at all levels.



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Arrange internships for students in Business Administration of recognized

universities, in the Field and at H.O.


leaves, approval of tour programs, approval of travel allowance etc

3.4.1 Training Administration and Coordination Unit

Ensure effective administrative and logistic support in organizing training and

development programs, make arrangements for boarding and lodging of

trainees, coordination with trainees and training vendors.

Maintain a central database on training and development (T&D) for each and

every employee of the organization.

Payment of Annual Subscription Fee to Member of ICMA etc, reimburse 50%

fee of Institute of Banker/allow reimbursement of fee to all employees for

attending coaching classes/refresher courses.

Issue nomination of different categories of employees for various courses to

be conducted at Staff colleges.

Motivate Bank employees for developing and promoting the culture of team

work to make the Bank vibrant, financially viable and sustainable organization

through workshops and seminars at workplaces.

Nominate employees for various courses/workshops/seminars conducted by

other institutions, within Pakistan.

Process cases for overseas training.

Process bills of all vendors.


leaves, approval of tour programs, approval of travel allowance etc.



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3.4.2 Skills Training and Development Unit

Initiate Training and Development Needs Assessment (NA) process in the

Bank.

Review Training Needs Assessment (TNA) for its appropriateness.

Decide the best suited training solutions to close the competence gap, and

prepare annual T&D plan/ calendar.

Develop annual Training Needs Assessment (TNA) budget on the basis of

training and development plan/ calendar. Monitor expenditure against budget.

Prepare, maintain and update syllabi of various courses periodically.

Ensure that employees attend training programs as per approved training and

plan.

Keep abreast the Bank employees with computer skills/ information

technology through developing/designing various courses to make them

computer literate. Training on office automation soft wares may also be

arranged enabling them for performing computer related assignments.

Launching of innovative technical skill orientation training programs like

Agri-Tech Courses for progressive farmers.

Prepare in coordination with Performance Management Department career

planning and roadmaps.

Prepare and forward training unit annual development plan.

Formulate annual development budget on the basis of development plan/

calendar.

Validate development programs.

3.4.3 Staff College Islamabad

Execute and administer different courses according to syllabi.



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Help in designing of course syllabi for different courses to be launched at

Staff Colleges.

Maintain a cadre of professional trainers and to cater for the administrative

needs of the trainers/trainees.

Tailor training schedule of the courses to be conducted at ZTBL Staff

Colleges.

Arrange and conduct field visits as a part of training package in different

courses.

Develop a feedback system for evaluating course contents and the trainers,

from the trainees with a view to improve the training programs and

methodology.

Promote integrated approach at work place focusing on achieving optimal

level of capacity building to meet out the new challenges of banking sector.

Conduct special courses for the participants of friendly countries as and when

required.

Arrange briefing to the visiting delegates from different institutions,

ministries and countries etc. visiting Staff College/ZTBL Farm.

.

3.5 PERFORMANCE MANAGEMENT DEPARTMENT

Functions

Formulate Bank-wide performance management system to ensure that

performance metrics are set and measured across the Bank.

Initiate and manage annual performance management cycle. Identify

anomalies and adopt measures to resolve them.

Maintain in current state a central performance management database of all

employees concerned.



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performance of units against the set performance metrics.


of performance management and enhancement.

Obtain feedback on various HR policies, procedures and programs to

recommend improvements.


Ensure that all relevant employment laws of Pakistan are complied with.

Adopt measures for risk identification and mitigation.


down the line.

Provide guidance to units under supervision in resolution of problems andcomplaints.



3.5.1 Performance Management Systems Unit

Devise a Bank-wide system for setting up of performance metrics,

performance assessment and monitoring.

Transfer the performance measurement system to line functions and ensure

that line-management and employees are well trained on use of the system.

Initiate annual exercise of performance targets/standards setting for the

coming years.



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Prepare and maintain a central database of performance targets/standards of

each & every officer in the Bank.

Highlight and escalate to the required level anomalies cited in the performance

management for adoption of remedial measures.

Adopt measures to resolve conflicts, if any, on account of disagreements with

the performance assessment.

Identify high performing employees to aide career development and

succession planning.

Share performance gaps with the Training & Development Department to

close them.

Prepare and forward to executives concerned a consolidated performance

ratings for the year.

Prepare on request and periodic MIS reports.



3.5.2 Performance Management Units (1-2)

Initiate annual exercise of performance targets/standards setting for the

coming years for their respective territory.

Prepare and maintain a database of performance targets/ standards and

subsequent feedback on achievements of each & every officer in their

respective territory.

Initiate periodic performance reviews by the Bank management and to ensure

timely completion of the process.

Review performance assessment against the agreed performance targets/

standards.



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Highlight and escalate to performance management system unit anomalies

cited in the performance assessments for adoption of remedial measures.

Collate performance ratings.

3.6 POLICY AND REGULATIONS DEPARTMENT

Functions

Overall responsibility of Human Resource Information System to facilitate

qualitative and quantitative analysis.

Undertake comparative policy and program analysis of related industry to

recommend HR policy and program changes.

Maintenance of employee records and database thus ensuring that accurate and

updated employee records are available for decision making.

Design, implement and monitor HR tools for bringing efficacious

improvement to HR system.

Prepare recommendations for formulation of pay-package.



Set performance parameter for the units and consistently monitor performance

of units against the set performance metrics.

Overall responsibility of formulation and implementation of HR policies and

programs. Obtain feedback on various HR policies, procedures and programs

to recommend improvements.


Define financial & administrative powers for all functionaries of the Bank.

Define job description of all positions in the Bank in consultation with the

concerned Division/Department/Office.



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Up-dating of HR manual.


Recommend change management initiatives.


leaves, approval of tour programs, etc.

Arrange maintenance/destruction of old record of the bank.

3.6.1. HR Systems Unit

Develop competency profiles for all job families in the Bank.

Prepare memo and concept papers for internal and Board approvals.

Maintain job descriptions of all functionaries in the Bank in a current state.

Circulate a consolidated quarterly position of circulars/circular letters issued

by various Divisions.

Arrange maintenance/destruction of old record of the bank.

Define job description of all positions in the Bank in consultation with the

concerned Division/Department/Office.

Define aims, objectives and functions of Departments, Divisions alongwith

their aims and objectives and keep it in a current state in line with

restructuring /reorganization process.


Prepare Departmental budget and monitor expenses against budget.

3.6.2 HR Policy Unit



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Formulate and implement HR system (policies) in line with HR strategy.

Maintain Human Resource Policies.

Prepare recommendations for formulation of pay package.

Manage process of delegation of administrative and financial powers to

various functionaries of Bank.

Prepare all concerned memo and concept papers for internal and Board

approvals.

Provide clarification and pronouncements on all policies and procedures

announced by the Department.

Obtain feed back on various HR policies, procedures and programs to

recommend improvement.

Pupation of HR Manual. 2.8 Adopt measures for risk identification and

mitigation.

.

3.6.3 Human Resource Information System Unit

Act as central system administrator for Human Resource Information System

(HRIS).

Ensure posting accuracy in update of all relevant employee records on the

system.

Perform data-integrity checks on HRIS database/files.

Ensure that all requisite details of ex-employees are maintained.

Maintain employees seniority list on the system.

Maintain and update record of posting and transfer orders as well as relieving

and joining of all the employees.

Obtain quarterly staff headcount/manpower positions.



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Prepare all statistics of manpower as per requirement of different

Departments.

Allocate PP No. to the newly appointed employees of the bank and inform

accordingly the same to Recruitment & Appointment Unit.

3.7 LEGAL SERVICES DEPARTMENT

Functions

Provide legal assistance to the Management and the Board in policy making

and operational objectives.

Conduct litigation on behalf of the Bank.

Manage defense on Banks behalf in service matters, recovery and other cases

filed before various courts of law.

Represent the Bank in courts of law and other fora.

Scrutinize and vet legal documents, agreements, house building & conveyance

advance documents and circular.

Take timely steps for preferring appeals, review and revision etc. against the

decisions of lower courts.

Enlist advocates on panel and as legal advisors and determine their scale of

fee.

Provide legal opinion on various issues to all Divisions of the Bank.

Assist and provide material to Banks Counsel for preparation of case.

Prepare budget estimates and maintain record of expenses on Law Charges.

Arrange payment of professional fee and misc. expenses to the Banks

Counsel and respond debit advices of such expenses received for the Field

offices.



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Coordinate with Legal and Litigation Cells in the Field for conduct of

litigation in the courts of respective area.

Monitor the progress of cases and the performance of the Banks Counsel.

Prepare monthly and quarterly status reports about the cases filed in various

courts.



Arrange defense/replies of the complaint received from Wafaqi/ Banking

Mohtasibs and represent the Bank.

3.7.1 Service Matters Unit

Deal with all service matter cases filed before various courts of law.

Assist and provide legal opinion in service matter cases and vet relevant

documents.

Assist and provide material for drafting petitions and preparation of defencen

statements to the Banks Counsel.

Offer comments on petitions/plaints/appeals in service cases filed for or

against the Bank.

Appear along-with the Banks Counsel in courts as departmental

representative.

Take timely steps for preferring appeals, review and revision etc. against

decision of lower courts.

Coordinate with incharge, to manage service matters cases filed in the courts

of the respective area.

Feed relevant rulings of the superior courts and changes in service laws to

concerned LLCs & HR Division.



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Examine legality of Grievance Notices of employees and give timely reply.

Arrange documents/certified copies for preferring appeals against the decision

of lower courts.

Maintain record of service matters cases and submit periodical statements of

pending cases to the Management.

Arrange payment of professional fee and misc. expenses to the Banks

Counsel and respond debit advices of such expenses received from the Field

offices.

Perform administrative functions for the Department such as sanction ofleaves, approval of tour programs, approval of travel allowance etc.

3.7.2 Business Matters Unit

Provide legal assistance for decision-making.

Assess and process enlistment of Panel Advocates, Legal Advisors for the

zonal offices.

Render opinions in all Business matters.

Observe and maintain financial control and preparation of budget estimates.

Compile various statements under New Recovery Ordinance Loan Default

Commercial, Industrial and Agricultural required by the SBP.

Maintain record of Banking Courts litigation and monitor the status on

periodical basis.

Process Notices/Summons/Orders received from courts and forward with

guidance and instructions to the concerned quarter for desired action.

Responding Debit Advices for booking of expenses and law charges to the

respective head of account.



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Keep liaison with Legal cells in the Field and propose steps for their

efficiency and smooth working.

Assist in periodical performance analysis of the Legal cells and advocates.

Vetting of house building/conveyance advance cases of employees and staff

advance cases under SR 2005.

3.8 BUSINESS DEVELOPMENT & MARKETING DEPARTMENT

Functions

Develop the short term/long term/annual business/operational plans.

Perform analysis-led development and marketing based on real customer

needs.

Develop business and product strategies for the Bank, including new product

development for liability and assets products that would entail specific

development of product features, pricing and positioning.

Issuance of instructions and guidelines on various products.

Evaluate current products and services offered, based on market information

and feedback, bring improvements in the features, pricing and positioning to

derive the maximum value out of them.

Prepare advertisement, promotional programs, product brochures, brand

development programs, marketing database management, lockers/ banking

services and other related activities.

Deliver targeted customer propositions through well-planned campaigns,

including radio and television advertising, direct mail and sales promotions.

Deal with insurance matters related to liability product/services.

Analyze particular customer segments and predict market changes that the

Bank can turn into opportunities.



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Implement policies and directives of BoD, SBP and the GoP on deposit, utility

bills, lockers and other products.

Support users in the application of systems, attending to and resolving system

problems in conjunction with systems specialists.

Ensure that procedures, systems, stationery, documentation etc. related to

credit are in place and in compliance with internal and external

rules/regulations for all present and new products and services of the bank.

Devise procedure system to implement product/ services and monitoring/

evaluation with due coverage of internal control.

Identify all operational and transactional risks to develop key risk indicators

for the function.

Develop and adopt early warning system to proactively mitigate these risks.

Develop customer service quality standards.

Perform any other work/ job assigned by the higher management.

3.8.1 Business Development Unit

Devise procedures, ways and means to increase resource base of the Bank.

Develop the short term/long term/annual business plans of the Bank.

Allocate deposit targets to Zonal offices and monitor/pursue on regular basis.

Develop new products to promote customer loyalty and retention so that Bankis able to maintain and strengthen the current market-holding/share.

Obtain internal and external clearance to ensure regulatory/ statutory

compliance for products and services offered by the Bank.

Prepare product financials, indicating its pricing and revenue targets.

Deal insurance matters related to deposit.



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problems in conjunction with system specialists.




3.8.2 Marketing Unit

Enhance and establish a positive corporate image for the Bank through various

marketing mediums including brochures printed material, press, outdoor

advertisement, electronic media and website.

Responsible for product lifecycle management initiatives including product

launching and product repositioning activities.

Conduct needs assessment/ market survey of the target market to gather the

requisite intelligence to design products and services that meet the market

expectations thus improving the market- penetration of the Bank.

Prepare training material in coordination with HR Division. Arrange

workshops for the relevant staff for all new products and services developed.

Prepare effective marketing and promotional campaigns to ensure

achievement of product revenue targets.

Work closely with the Training and Development Department and be

responsible for preparing and carrying out Training to select Trainers.

Ensure that procedures, systems, stationery, documentation etc. related to

credit are in place and in compliance with internal and external rules/

regulations for all present and new products and services of the bank.


Devise procedure system to implement product/ services and monitoring/

evaluation with due coverage of internal control.



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Perform any other work/ job assigned by the higher management.

3.9 BRANCH OPERATIONS DEPARTMENT

Functions

Prepare and analyze Field performance reports.

Monitor Branch operations.

Monitor the performance of Zonal offices.

Supervise operations of the branches for identifying the problems and

locating\ weak areas for remedial measures.

Locate and identify reasons/causes of loss sustained by branches during the

year and suggest remedial measures to make them profit earning.

Evaluate performance of Field functionaries for purpose of awards on good

performance.

Undertake field expansion program.

Evaluate and advise on opening/merger/shifting/closing of branches and

bifurcation/merger of MCO circles.

Examine the suitability of the location of branches.

Handle all administrative matters such as employee training and development,

manpower planning, departmental budget, sanctioning of leaves and tour

programs and TA bills of Zonal Chiefs.

Maintenance of fee of SBP license and ensure their availability in branches for

display and record.

Ensure loan and deposit accounts balancing of branches.\

Develop and implement system to record and resolve customer complaints

without compromising on controls.

Preparing job description of each field functionary.



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problems in conjunction with system specialists. Ensure that procedures,

systems, stationery, documentation etc. related to BOD are in place and in

compliance with internal and external rules/ regulations for all present andnew products and services of the Bank.

Plan, direct and implement reengineering, decentralization and outsourcing to

continually drive improvements in process efficiency.

Devise adequate system and control to minimize fraud and forgeries.

Identify all operational and transactional risks to develop key risk indicators

for the function.

Determine core and specific job competency for each position of field

operation.



Perform any other job/work assigned by higher management.

3.10 Credit Division

Functions

Formulation and review of credit policies/ to ensure compliance with (1)

Memorandum of Association of the Bank (2) decisions of BoD (3) Prudential

Regulations issued by SBP (4) SBP directives and (5) Code of Corporate

Governance issued by SECP from time to time.

Analysis and monitoring of disbursements of zones and persuasion for

achievement.

Preparation of memos on operational performance on the Bank for BoD.

Preparation and updating of Credit Manual.

Liaison with federal and provincial governments, SBP and other agencies on

Credit Policy.



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Study and examine proposals on various insurance schemes including crops

and livestock insurance farm machinery, civil work structures and life

insurance of borrowers of the bank.

Formulate insurance procedures and policies and to monitor and control theinsurance affairs.

Formulate and review the procedure for booking of tractors and disbursement

of loans thereof.

Modify procedures based on changing business requirements and technical

capabilities.

Devise procedures to ensure full compliance to SBP directives/ regulations.

Approval of insurance policy for the bank from the competent authority.

Improve the access of institutional credit to rural small land holders/ landless

women through a viable credit delivery mechanism system.

Preparation of operating procedures manual.

Enlistment of manufacturers/ suppliers of tractors and circulation of prices of

various makes of tractors.

Perform any other job assigned by the higher management.

3.11 RECOVERY DEPARTMENT

Functions

Prepare, review and update recovery, remission and rescheduling policies.

Arrange implementation of policies and procedures for recovery, write-off/

remission and rescheduling and their constant review.

Examine/process the rescheduling and final settlement of Agri loan cases and

to prepare memos for approval of competent authority.

Ensure accuracy of repayment schedule issued by concerned branches after

rescheduling of Agri. Loans.

Fix recovery targets on realistic basis and monitoring thereof.



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Formulate policy of honorarium to Banks Field staff in recognition of their

good performance.

Conduct daily, weekly, monthly quarterly, half yearly and yearly

review/analysis of recovery operations of the Bank, besides identifying the\

problems and weak areas of recovery operations.

Effective utilization of mandatory provisions of land revenue act. (For the time

being it is suspended).

Determine cases under Recovery Ordinance 2001.

Review Branch/Zonal recovery performance and to pursue/advise aboutachievement of assigned targets.

Deal with the cases of big and influential/difficult borrowers and Banks own

employees with a view to recover dues.

Prepare analytical and historical data of recovery operations.

Analyze on request periodical recovery statements received from the zones for

submission to the higher management.

Analyze performance of Zonal Managers with reference to their personal

recovery targets.

3.12 RESEARCH & PLANNING DIVISION

Functions

Undertake research on subjects that facilitates/promotes business and

economic planning.

Develop and operate a research centre to perform research on relevant issues

of rural and agriculture sector and its development. Keeping track of

developments in global as well as domestic public policy relevant to ZTBLs

business environment including the practices and role of competitors and the

necessary dissemination of this information within ZTBL and the external\

agencies.



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Maintain an up to date repository on policies of GOP on agriculture/ rural

sector and identifying the effects of these policies on ZTBL and the economy

and keeping ZTBL management abreast.

Maintain a system of collecting and collating of data on rural and agriculture

sector for use in decision making process of ZTBL.

Maintain library at ZTBL, H.O. and update adequate number of relevant books

and publications on the subject of agriculture/rural sector, Agri-financing and

related areas.

Maintain data on operational results (Zonal Performance Indicators).

Compilation of Annual Report.

3.13 SERVICES DIVISION

Functions

Develop and maintain policies and procedures manual.

Build strong networking with key stakeholders to leverage timely response

from them.

Provide in compliance with the guidelines modern buildings for Bank offices

at suitable places either by construction or hiring and arrange the proper

maintenance/refurbishment. Medical Services Departments guidelines, if any,

must be complied with. Provide and maintain office furniture and fixture.

Ensure regular and efficient services like AC, water and gas etc.

Arrange residential/office accommodation.

Arrange installation of telephones faxes at H.O and payment of bills thereof.

Maintain telephone exchange (PABX) at H.O and installation of PABX

system in Zonal offices.

Arrange allocation/withdrawal of vehicles.



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Maintain official vehicles properly and to watch their economic use in the best

interest of Institution.

Arrange renewal of token taxes, insurance and registration of Banks vehicles.

Scrutinize repair files of official-cum-private vehicles allocated to entitled

officers.

Supervise affairs of the ZTBL Workshop.

Arrange receipt and dispatch of mail on daily basis and its efficient delivery

through couriers/special messengers (Dispatch Rider).

Maintenance of office equipment through standardized firms.

Ensure proper logistic arrangements for Field offices and supervision of

matters pertaining to vehicles, office equipment etc. for smooth working.

Provision of all types of printed forms, registers, ledgers, other documents and

negotiable instruments to Field offices and H.O. divisions/ departments. etc.

Provision of all types of computer stationery computer paper, tapes,diskettes, ribbons etc to all the Zonal Computer Centers, Information Systems

Division/departments.

Provision of adequate and standardized items of table stationery to all H.O.

Divisions/Departments.

Arrange forms, pamphlets, brochures, periodicals, directories, books, manuals,

loan guidelines, technical bulletins, reports, etc. compiled by various

Divisions/Departments.



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Chapter Four

4.0 Actual and Prescribed Functions

4.1 Functions of HR Division

Evolve and adopt measures to implement human resource strategy congruent to

banks business strategy.

Provide effective human resource administrative services to management and

employees of the bank.

Identify performance gap and provide appropriate training solutions to

close/bridge these gaps.

Contribute positively to employee motivation through effective career planning

and development.

Overall responsibility of HR policies formulation, approval and implementation

and maintain a Human resource policies and procedures manual in a current state.

Devise a system to monitor effectiveness of HR system and adopt measures to

close gaps/ weakness in the system.

Identify risks proactively within Human resource systems framework and adopt

measures to mitigate them.



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Ensure up to date employee knowledge and skills within human resource

functions.

Represent the Bank in courts of law and other forums.

4.1.1 Actual Functions

As an internee in ZTBL, I observed that HR division performing its whole function

according to its prescription rather than some functions. Like identifying risk

proactively in ZTBL there isno any concept of risk identification. They are failed in,

to identifying risk related to human resources. Another ambiguity is that some units

have conflict in their responsibility & their duties are mixed with other units of a same

department. Some units are transferred from the supervision of one department to

other departments.

4.2 Human Resource Operations Department




performance of units against the given performance metrics.


Ensure that all relevant employment laws of country are complied with.


down the line.

Ensure that confidentiality is maintained in sensitive HR issues to ensure

complete trust of management and employees.


leaves, approval of tour programs etc.


of employee pension management. Obtain feedback on relevant policies,

procedures and programs to recommend improvements.



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Establish human resource requirements through a human resource plan


right job and employee headcount/ manpower numbers.

Actual Functions

I observed that there is no difference in actual and prescribed functions of HR

operation department. Some deficiencies present in implementation of HR policies

this is due to lack of awareness system. Now bank is improving this deficiency.

There are four units of this department.

4.2.1 Employee Service Matters Unit

Manage all issues related to employees seniority.

Manage all promotion, move-over, switch-over related issues.

Maintain declarations of assets and liabilities of all employees of the Bank.

Dispose off service matters received from officers and other employee

representative bodies.

Manage the process of sanctioning of all kinds of leaves including Ex-

Pakistan Leave as per policy.

Process applications of employees seeking any outside employment and grant

of lien, thereof.

Process counting of pervious service including settlement of accounts with

pervious employer.



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Maintain personnel files and record of all employees.

Prepare replies to parliamentary questions and queries related to employee

service matters.

Issue all types of Service Certificates to employees.

Any other individual service matter case as per policy/ instructions of the

Bank.

Issue clearance certificates for sanction of employees confirmation, Ex-

Pakistan leave, foreign tours etc.


Sanction Education Allowance to Clerical/Non-clerical Staff.


Actual Functions

In some cases nepotism is happening in maintaining seniority and in promotion.

Otherwise whole functions are performed according to policies and prescribed

functions.

4.2.2 Transfers and Postings Unit

Establish human resources requirements through a human resources plan


right job and employee headcount/manpower numbers.

Recommend initiation of disciplinary action for non-compliance with posting

orders.



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Actual Functions

These functions are also function of recruitment and service matter units. It means

their responsibilities are mixed with each other.

4.2.3 Compensation and Retirement Benefits Unit

According to my observation there is no difference between actual and prescribed

functions.

4.2.4 Recruitment and Appointments Unit

Provide feedback on policies related to Unit to mitigate weakness and initiate

improvements.

Actual Function

In above there is ambiguity. This function is not properly done by the unit. They take

assistance from some other units.

4.2.5 Staff Relations & Welfare Department

Resolve conflicts professionally to the mutual advantage of the Bank and the

employees.

Actual functions

There is two employee unions one is with management other is in opposition. During

the internship I observe here that there was a conflict between management and

unions but bank was failed to solve this conflict.



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4.2.6 Performance Management Department

Actual functions

There is concept of nepotism in some cases. For example in performance

measurement appraise did nepotism, because they use MBO techniques for

measurements of performance.

4.2.7 Policy and Regulations Department

Arrange maintenance/destruction of old record of the bank

Actual Functions

As mentioned above, their duties are to arrange and maintain old record. But in

reality, this record is saved in the form of manual. So they lose it after some years.

4.2.8 Legal Service Department

Actual functions

Some matters deal by respective units. Like retirement cases deal by compensation

and retirement vice president and others.

4.3 OPERATIONS DIVISION

The operation division I observed is smoothly running and performing actually

according to the prescribed functions.

4.4 Relationship of Head Office to the Branch Offices



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The relationship among branches and Head office is not up to the mark. The

communication system is ineffective with those branches which are located in the far

flung and remote areas of the country. They mostly use fax system, emails, and

telephone. There is no any concept of online system at present like the other banks.

Any information or order which head office SVP want to share with Zonal office

chief he sends him fax or emails. In some branches computer are available but the

technical expertise are not available to run. Mostly work is done through manually in

black and white. ZTBL have vision to modernize its whole branches. Due to manual

work its efficiency of work decreases so to increase its efficiency ZTBL should make

its communication system fast, reliable and effective.

Any order comes in the form of files these orders send by VP or OG2 officer in

relative branches. For getting feedback from branches they have fax machines and

telephone lines.

4.5 Summary of the Divisions and Departments of WholeOrganization

Divisions 12

Departments at head office 33

Staff colleges 2

Medical units at head office 1

Audit directorate fields 10



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Audit and control units 12

Vigilance unit 12

Inspection & complaints unit 10

4.6 Current Staff

Nature of service of employee Number of employees

Permanent employees 870

Contract based employees 400

Total number of employees 1270

(ZTBL, Annual report, 2009)

4.7 Training Opportunities to Employees

The employees of the bank are trained in the staff colleges of ZTBL. In the whole

country there are two main staff colleges, where the employees are given training.

One is situated in Islamabad and other is in Karachi. Mostly training is given to those

who are new or very old employees. It is duty of management to identify what type of

training a person requires according to his performance. Mostly computer training is

given to employees in staff colleges.



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4.8 Workload on Employees

There is more than work load on OG1 & OG2 and on lower staffs because mostly

work in ZTBL is manual work. Every case is filed separately, if they want to

introduce new schemes they have to make its file, this file circulated into whole

division and also in front of higher management.

4.9 Salary structure

In ZTBL there are two systems of salary structure. One is lump sum salary under the

staff regulation (SR: 2005) and other is pay scale according to the agriculture

development bank ordinance 1961 (SSR 1961). In ZTBL both the systems are used,

mostly officers adopted Lump Sum salary, but clerical staff they have the old system

salary. In old salary system, employees can get pension but in lump sum system he

cannot get the pension.

4.10 Promotion Criteria

Promotion criteria in ZTBL based on two systems one is Seniority comes fitness and

other is merit base promotion criteria. Seniority come fitness is for all employees but

merit is specified for AVP, SVP, and EVP.

A criterion for seniority comes fitness is:

Length of service means, minimum eligibility period for promotion, for clerical staff

is 4 year and for OG1, officers, senior officers is 7 years. Total marks for promotion is100 the one who get 60 they are considered as qualified. Total marks are for

promotion division are 100.

Division of marks is

ACR 90

DIB 10

But the qualifying marks are 60. the bifurcation of ACR for we take example of

behavior one give 10 marks for very good, other give 8 marks for good, 5 marks for



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average, 2 ,marks for below than average, zero marks for poor. Diploma must in

between 1-10. Now I discussed some point when ACR deducted.

1) Any employee who has adverse effect then one marks deducted from total ACR

values.

2) If any employee got major penalty then 5 marks deducted.

3) Any employee who does not avail any type of training then 3 marks deducted from

his ACR.

4.11 Incentives & Motivation

Bank pays bonuses to its employees who perform well in their field to motivate and

raise the morale of the employees. The employees who are hired under the (SSR

1961) are paid pension and the others who are hire or transferred them selves to SSR

2005 are paid a lump sum salary which consists of all other allowances and

incentives.

4.12 Communication System

The communication system inside the head office as well as in between the head

office and branches is ineffective because work done by employees through telephone

and through fax machine, file moving system takes a lot of time because it has to pass

through so many tables in files which decreases the efficiency of work. This workefficiency delivers a wrong message to the customers and also increases the cost.

4.13 Filing System

The filling system in ZTBL is mostly manual and the old files are stored in a store

where there is the danger of damage of files by insects and the manual record keeping

also consumes time to find the old data from a bulk of files.



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4.14 Morale of Staff

The morale of employees is not very high because when they perform better then they

are not rewarded with certain benefits accordingly. So to boost the morale of

employees it is necessary to the management to praise and gave them rewards in

monetary and non monetary terms. Another reason of low morale is because some of

the employees who are permanent their perception is that they have permanent job

and their job is secure.

3.15 Physical Facilities

The physical facilities of ZTBL to its employees is not satisfactory because there no

any proper facility of sitting in the rooms, the atmosphere of office is very different,

three to four officers sit in one room and rooms are over crowded with their assistants

and also with customers. Filling system is manual and cupboards are full with files,

and there is no space for telephone on the table. Bank provides computer to those who

have the knowledge of using.

4.16 Performance Management

Performance Management system was introduced from the year 2006 in ZTBL to

inoculate performance driven culture in the bank, reward good performance through

merit increase and employee reorganization program and improve the unsatisfactory

performance through training and development. Performance management department

has further improved the performance appraisal form for the 2007 and further

amendments would be taken for the 2008.

Basically (ACR) Annual Confidential Report is still there for the clerical and non

clerical staff of the bank, but for the officers level there is Performance appraisal

System. Both these are to some extent are the same but few difference are still there in

it.



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Procedure of Performance Appraisal

There are two appraisers rate, a single appraisee and one out of them is the direct

supervisor of the employee and other is the one who weekly visited the departments

of head office or the branch, Zonal chief, President Etc. The direct supervisor is under

whom the employee is working and the other one validate the function of the

departments of bank to be effective or ineffective. Performance of an officer is

appraised annually at the close of each calendar year and also on the transfer of the 1 st

appraiser or appraisee, if any one of them is transferred after three months after the

annual appraisal has been made. Appraisers

ztbl research report

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