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Report On “Management Practices in State Bank of Pakistan”

Table of Contents Topics State bank of Pakistan - A Dynamic Organization Functions of State Bank of Pakistan Traditional functions Primary Functions Secondary Functions

Non-Traditional or Promotional Functions

Developmental Role of State Bank Statistics & Data Warehouse Department Brief History Mile Stones Stakeholders

Page 4 4 5 5 5 5 5 6 6 6

External Stakeholders Internal Stakeholders

6 6

BUSINESS PROCESS Management Processes of the Department

7

A. Planning

8

Annual Business Plan Structure

8 8 9 9 10 10 10 10 10 10 11 11 11 11

Vision, Mission Statement Development Projects Operational Goals setting Competencies requirements HR Needs IT Needs Training & Development Needs Capacity Building of the Employees Educating the stakeholders

Office Equipment/ Furniture & Fixtures Needs Office Space Requirements Event Planning Budgetary Plan

B. ORGANIZING

12

Operation manuals and reporting guides Formal structure

12

Responsibilities and Authorities Departmental Management Team (DMT) Head of Department Head of Sectors Heads of Divisions Head of Units Service Unit

Informal structure

12 12 12 13 13 13 13 13 13 DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” Topics Formation of Project Teams IT and other Resources Training courses and Consultants Self Accountability

Page 14 14 14 14

C. Leading

15

Empowerment Employees Recognition Policy Training and development Scholarships and cash Awards on additional qualifications Performance Based Career Work life balance Employee Morale

15

D. Controlling

17

Quarterly Review of Performance Objectives Annual Evaluation of Performance Objectives Quarterly Review of Budget Concurrent Controls Redundancy Control External Audit Stakeholders Feedback Post Project Reviews Risk Register Checks for Data Reporting at Source Management Processes –Where we need improvement

17

Lacking in Planning Lacking in Organizing Lacking in Leading Lacking in controlling

D-Stafing Hiring of Employees Jobs at SBP Selection Process Job Descriptions Job Specification Employee Training and Management Dev. Program Employee Benefits Performance Evaluation System Career Planning Equal Employment Opportunities Promotion from Within Abbreviation

15 15 15 16 16 16

17 18 18 18 19 19 19 19 19 20 20 20 20 20 21 21 21 21 22 22 22 22 22 23 23 23 24

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Report On “Management Practices in State Bank of Pakistan”

Quaid-e-Azam last public appearance, on 1 July 1948 at the opening of the State Bank of Pakistan.

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Report On “Management Practices in State Bank of Pakistan”

State Bank of Pakistan - A Dynamic Organization: •

Following the international standards and bench marks in policies formulation and implementation e.g. o Independent monetary policy– indirect inflation targeting o Liberalizing foreign exchange o Floating exchange rate o Real-time payment system -RTGS



Planning towards inflation targeting



More focus on human resources management. o Quality work life – market based pay, medical, staff loans, hostel, gym, daycare centre, scholarships ,training and development, welfare trust



Flatten structure



Promotion of Islamic Banking



Credit information Bureau



Social

Welfare

–Scholarships

for

external

students



Infrastructure,

development, subsidized loans schemes- donations

Functions of State Bank of Pakistan (SBP) Under the SBP Order 1948, the Bank was charged with the duty to "regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage". The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. SBP performs both the traditional and developmental functions to achieve macro-economic goals. Main objective is price stability in the country.

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Report On “Management Practices in State Bank of Pakistan”

Traditional functions 1. Primary Functions: • • • • • •

Issue of notes Regulation and supervision of the financial system Bankers’ bank Lender of the last resort Banker to Government Conduct of monetary policy

2. Secondary Functions: • • • •

Management of public debt Management of foreign exchange and Balance of payments Advising the government on policy matters Maintaining close relationships with international financial institutions

Non-Traditional or Promotional Functions • • • • •

Development of financial framework Institutionalization of savings and investment Provision of training facilities to bankers Provision of credit to priority sectors - subsidized credit (SMEs, Agr. etc) Islamization of the banking system.

Developmental Role of State Bank • • • • • •

Development of important components of monetary and capital market Assist the process of economic growth Promote the fuller utilization of a country’s resources Developmental role to promote the realization of macro-economic goals Development of new financial institutions and debt instruments Establishment of Development Financial Institutions (DFIs)

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Report On “Management Practices in State Bank of Pakistan”

Statistics & Data Warehouse Department Brief History •

Core department of the State Bank of Pakistan



Mr. Zahid Hussain, the founder Governor of the SBP established it in the late 1949.



Responsible for collection, compilation, dissemination and publication of statistics on economic, financial and monetary aspects most pertinent to the central banking.



Central role in providing statistical data to the Government and other policymakers.



The system of data collection and processing has gone through a major change over the past few years.



With the adoption of IT facilities, the performance of the department has improved significantly in terms of efficiency as well as quality.

Mile Stones •

Follow international standards in data compilation (MFSM,SNA93,BPM5)



Meeting standards of Data Dissemination Standards (SDDS, GDDS)



Data user’s portals (in process)



Training to other Central Banks’ representatives to adapt our methodologies



Online data collection

Stakeholders External Stakeholders • • • • • • •

IMF, World Bank, ADB, IDB, BIS and other international organizations All Banks and financial companies Ministries & Govt. Departments Companies Academia/Research Organizations Media General public

Internal Stakeholders • • • •

SBP Management SBP Departments SBP (BSC) All employees of department DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

BUSINESS PROCESS The output or product of the department is the statistics (Data) on macroeconomic variable. The data compilation has been divided in three major areas: 1. External sector data 2. Internal sector data 3. Developmental sector data The external sector compiles and disseminates data on: •

Balance of Payments (BOP)



Foreign currency accounts



International Investment position (IIP)



Trade, Remittances, Income



Foreign investments



External debts and liabilities



Reserves

Internal sector compiles data on: •

Monetary statistics



Assets and liability of banks



Interest rates



KSE index

• Preparation of annual Flow of Funds Account Developmental sector data •

Publications



To explore and implement new developmental projects



Update data on website

The sectors have been divided in 9 functional groups called divisions. The divisions are further divided in units. The planning for business processes of all divisions are carried out in June for the coming financial year (July-June). It contains goal setting and competencies required to achieve the goals along with other requirements. DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

Management Processes of the Department

A. Planning Annual Business Plan Structure: Section Description No.

Remarks

Table of Contents Departmental Mission and Vision Statement 1

Departmental Introduction/ Objectives Departmental Organogram Brief overview of Division/Units Departmental Achievements Summary Development Projects of Last Year & Current Year

2

Operational Goals (Division / Unit wise with KRAs / Annextures KPIs)

3

Development Projects

-do-

4

H.R. Needs

-do-

5

I.T. Needs

-do-

6

Training & Development Needs (Local/Foreign /Attachments)

-do-

7

Needs relating to Office Equipment/ -doOffice Space / Furniture & Fixtures / Summary of consultants to be hired

8

TOR for Hiring External Consultant(s) -do-

9

Summary tables for requirements

-do-

Vision

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Report On “Management Practices in State Bank of Pakistan” "The Statistics Department aspires to set and maintain the highest standards of excellence in the compilation and dissemination of efficient statistics."

Mission Statement "Our mission is to ensure timely dissemination of high quality statistics for the monetary and macro-economic polices leading to the prosperity of Pakistan" Core Values Trust, Openness, Team Work, Courage, Commitment to Excellence, Problem-solving approach Summary of Development Projects: In contrary to routine jobs the department is always searching for new fields of data compilations In order to meet the requirements of the stakeholders. At the start of each financial year some developmental projects are made for these avenues. Summary of Development Projects (Last Year & Current Year) SN

Project Description

Nature of the Project

Timelines

Last Year (mention actual date of New /Spillover/ Phased initiation in case of spilled over / Completed Current Year (mention actual date ofNew /Spillover/ Phased initiation in case of spilled over project)

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Report On “Management Practices in State Bank of Pakistan” Format - Development Projects (Current Year): Name of the Project: Brief Description: Project Deliverables: Key Responsibility(s): Associated Responsibility, if any: Timelines: Duration: Long-term, short-term Nature of the Project: New / Spillover / Phased Division Responsible: HR Needs: IT Needs: Training & Development Needs:

Operational Goals setting: Individual goals are set for all areas of operations. Goals of the divisional heads are actually goals of the divisions and goals of the unit heads are goals of the unit. The individual goals reflect goals in various sections of the units. Advance release calendar is issue at the start of the year showing the dissemination dates of various statistics. Division / Unit: Name of the Division / Unit with brief Introduction Goals & Objectives: SN Key Result Areas

Key Performance Indicators

Brief Description of the key result areas that could be Timelines / quality Outcomes at Division / Unit level Recurring / Routine results pertaining to day-to-day measures activities Competencies requirements to accomplish goals Specific competencies are required to identify in the performance-planning phase and giving weights to Perform the job. The format is: NAME OF COMPETENCY

IDENTIFIED LEVEL

DESCRIPTION DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

Three broad types: i) Core Competencies mandatory for each appraisee: o Achievement Orientation o Team Work o Communication ii) Role Specific Competencies iii) Function Specific Competencies The Role and Function Specific competencies have been grouped in five clusters: • Achieving Results Cluster • Interpersonal Skills Cluster • Personal Effectiveness Cluster • Leadership Cluster • Problem Solving and Thinking Capabilities Cluster Human Resources department maintains competency dictionary for all levels of management i.e. Individual Contributor, unit heads, divisional head and head of the department HR Needs: Gap in the required and available Human resources identified and a plan is prepared to fill the gap from internal and external hiring. Approved Man Power Plan Grade FY 2007-08

FY 2008-09 Available Required

Gap

Justification / Reasoning

IT Needs: Computer hardware and equipments Description Available Required Gap

Justification When required Reasoning

Training & Development Needs: Capacity Building of the Employees: Training needs are identifies and a schedule is prepared. The trainings include on job training in the department, functions specific training local and foreign, workshops, seminars etc DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” Educating the stakeholders •

Trainings of Data suppliers – banks and other companies



Data compilers and users workshops



Outreach Workshops – specially for the education institutes

Format Foreign and Local Trainings Name of the Areas of Duration Institute / Central Training / (days) Bank Attachment

No of Remarks Participants

Format In House training courses Brief Description

No. of Duration Participants (days)

Training Institute / Consultant /

Office Equipment/ Furniture & Fixtures Needs: Description

Available

Required

Office Space Requirements Office Space Available Required Event Planning Events

No. of participants

Gap

Gap

When Required

When Required

Start Date/ End Date

Summary of Consultants to be Hired Description (Firm / Individual / Duration Estimated Cost Local / Foreign) required

Justification \1

Justification

Remarks

When required

Remarks

Budgetary Plan: Flexible budget is allocate for training, maintenance, projects, travel etc Head of Account

Quarter Allocation

wise

Total

Basis of Estimation

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Report On “Management Practices in State Bank of Pakistan” Q1

Q2

Q3

Q4

Amount

Expenses Establishment Expenses TrainingLocal Fees Outsiders, Profess. Charges Professional Charges Stationery & Printing Traveling, daily Allowances Conveyance & Fuel charges Computer Running Expenses Repair & Maintenance Communication Miscellaneous Expenditure

B. ORGANIZING Operation manuals and reporting guides • • •

Operational manuals for routines jobs of all the divisions are maintained in the department In order to compile data as per international practices and benchmarks, the department follows the manuals and guidelines of IMF, World Bank, FASB, IASB, and SDMX. Reporting guides procedures are designed as per standard format are provided to banks and companies.

Formal structure Head of the department - Director Sector’s Heads - Senior Joint Directors Divisional Heads – Joint Directors Unit Heads – Junior Joint Directors / Assistant Directors Statistical Officers - Individual Contributors Supporting Staff Responsibilities and Authorities: DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” CMT (Corporate Management Team) is responsible to manage and guide the functions of the bank including all the departments and subsidiaries of SBP. The Department consists of 3 major sectors and Nine Divisions and each division has units. The divisions are responsible to run the business in their respective areas which has been defined in planning phase. The units are responsible to carry out the operational goals to meet the requirement at divisional level and then on departmental level. Departmental Management Team (DMT): •

The DMT consists of HOD, Sr. Joint Directors and Joint Directors



Responsible to manage and guide all functions of the department



Quarterly review of the performance of department as per business plan



Quarterly review of the progress of developmental projects



Decides rewards and recognitions for the employees



Nominate officers for foreign training.



Monthly meetings with all staff to discuss progress, address their

grievances, problems, and suggestions. Head of Department: •

Have responsible for overall functions of department.



As a line manager he ensures implementation of banks policies



He is supported by DMT in overall managerial processes



Ensures departmental objectives consistency with strategic objectives of

department and the bank. Head of Sectors: •

Have responsible for compilation and dissemination of Statistics of his

sector. •

The Divisional heads under his supervision provide support in the processes.



Have responsible to ensure coordination among divisions and to other

administrative matters. Heads of Divisions •

Joint Director is responsible for the business and administration of the

division. DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

He sets divisional objectives and leads the division



Supports subordinates to prepare their goals and defines the action plan to

achieve their objectives. •

Prepares business process manual of division and reporting guidelines.



Ensure communication and implementation of policies within their divisions



Ensure interaction among the members of division.

Head of Units •

Junior Joint Directors/Assistant Directors are responsible to set objectives

and action plan of their units with the support of divisional head. •

They are accountable for accomplishment of unit objectives.

Service Unit •

An assistant director heading the unit is responsible for administrative

affairs i.e. transfers, maintenance, budget, facilities and human resource requirements etc. •

The department has a training coordinator responsible for training activities

Informal structure •

Participation in MPR reader’s forums formed in MPR Cluster



Interdepartmental projects like macro-modeling, eliminations of redundancies



Learning in trainings and workshops with other fellows of the department



Solve work problems in coordination with the stakeholders



Interactions with banks and companies regarding their functions and reporting •

Presentation to GMT on return from foreign training

Formation of Project Teams: •

Communication of the projects and its deliverables in the department



Volunteer nominations for the groups



The DMT decides members and leader for each project IT and other Resources: DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

A Data warehouse providing file sharing facilities and limited access to

officers has been formed for most of the data collection, processing, and preparing reports. •

Each officer has Phone, PC with internet, fast networking, printers of systems and •

An electronic board having all the internal communications and information

of the banks is accessible on each PC •

Online software and networking are provided for PMS, HRIS, and

Stationary and other equipments are provided when needed •

Officers are provided remote access of their emails Training courses and Consultants:



Training courses are arranges as per the plan and others if needed. •

Consultants are invites from international organizations in important and

specific areas of operations like BOP, IIP and monetary statistics. Self-Accountability: •

Each individual are accountable for their work



Individual are contributing positively to produce authentic and reliable

statistics. •

Maintains personal and professional integrity and follow core values



All employees follow the staff regulations made obligatory by the

management.

C. LEADING Empowerment: •

Operational goals and action plans are selected with the involvement of

workers. •

Progressive delegation of administrative and operational authority at all

levels •

Critical thinking and candid feedback is highly appreciated in the

department DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

STAR form to recognize performance

Employees Recognition Policy: •

Four levels i.e organization, group, department and individual awards are

given in each quarter for extraordinary performers to encourage their talent and innovation •

Certificates and cash awards of Rupees 30,000, 15000, and 5000 are given

to level 4, 3, and 2 respectively. Level 1 award is just appreciation and email of thanks •

The award policy and levels have been defined in award policy on the

following grounds. o Extra ordinary efforts to complete a task. o Modification and addition in the existing methods. o Doing something value addition value in output. o Participating voluntarily in developmental projects Training and development: •

TNAs are conducted and performance review forms are consulted in the

bank to identify training needs of the employees. •

NIBAF provides central banking, managerial and other training programs at

all levels from induction to retirement of employees according to needs. •

Employees are sent on foreign trainings/workshops/attachments to various

international organizations/ central banks to get international exposure and practices Scholarships and cash Awards on additional qualifications: •

Financing higher studies in national and international institutions.



Study leaves are also granted for Ph.D and for foreign scholarships.



Cash awards for additional qualification, certification, and diplomas

Performance Based Career: •

Performance based Promotion policy i.e. 2 years full PMS reports and a

performance/competency based interview DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

Competitive hiring and selection from within the organization for higher

levels Work life balance Supervisors understand the need of employees and give them the opportunity to maintain work life balance Rest and Recreation leaves are grants to employees, as they need it. Leaves, short leaves are grants as per the policy to take care of their personal affairs. Employee Morale •

The achievements and events are celebrated in the form of lunches, tea or

picnics. •

Open communication senior management



Employee motivation surveys are conducted periodically to access

motivation at each level and special attention is given to those who show dissatisfaction

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Report On “Management Practices in State Bank of Pakistan”

D. CONTROLLING The department has efficient controlling system and the process is defined simultaneously with the planning process. While setting the objectives, goals and methods to accomplish them the standards are also defined to evaluate the results. Framework is established to measure the results and corrective actions are taken as needed. Besides the feed forwarded approach the concurrent and feed back control strategies are also adopted in the department. Quarterly Review of Performance Objectives: •

Goals, objectives and competencies are reviewed quarterly to measure the

gap in actual and desired performance quarterly •

Performance is discussed between appraiser and appraisee.



Identify the hurdles and problems facing by the worker and come up with a

solution or change in existing action plan so the desired results can be achieved. •

Developmental project teams present their progress to DMT and gap are

measured between quarterly achievements and targets •

Plan is reviewed and sometimes it causes to change or abandon the plan.

The example is HPI (Housing Price Index) project which was abandoned due to not getting the desired objective while reviewed on quarterly basis. Annual Evaluation of Performance Objectives – Fate of Employees: •

The most important phase of PMS is the annual appraisal of individual goals

and competencies leading to overall evaluation of objectives set in planning phase. •

Proportional weights are assigned to goals and competencies ratings



Online system provided by Human Resources Department to perform the

task. •

Interviews are held for evaluation between appraiser and appraisee.



A bell curve is made and PMS ratings are allotted to each employee as

A,B,C and D •

Pay increase, promotion and almost all motivating factors are linked with

PMS Format of Goals achievements: DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” Key Result Area

Key Wtg Goals %

Performance Actual Rating Wtd Reviewer Measure Achievement Rating Comments Changes Rating

If In

Format of Competencies exhibited: Name Of Identified Competency Level

Rating

Behavioral Example

Reviewer Comments

Quarterly Review of Budget: Head of Account

Proposed Budget

Actual Expenses

2007-08

2006-07

Variance Actual %age

Cash Award, Honorarium Staff Overtime Allowance Training Local Stationery And Publication Traveling Daily Allowance Conveyance & Fuel Charges Communication Computer Running Expenses Repair & Maintenance Misc. Expenditure Total Budget The monthly budget review at departmental and divisional level is prepared to ensure the allocation of budget properly as per decided in the planning phase and the deviations are identified. The decisions are taken to provide the finances to fulfill the immediate needs not identified in planning phase. It may be arrangements for a functional training from department to workers or banks’ training on any specific issues etc. Concurrent Controls •

Support from managers to remove hurdles in accomplishment of objectives DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

Monthly progress report to evaluate the performance



Random check and ask for the process in ongoing assignments

Redundancy Control: •

Special projects have been conducted to match the out put results with other

organizations. In these projects data suppliers, variables and methodologies of outputs were reviewed to avoid duplication of outputs. For example discontinuation of compilation of KSE index from June 2008, elimination of “E” forms. External Audit: •

Internal Audit & Compliance Department

of the bank examines and

evaluates frame work of risk management, control, and governance processes of the department •

Perform both IT and other job audits periodically



Advising and recommending senior management for improvements in

internal control and risk management systems Stakeholders Feedback: •

Review of stake holders feed back about websites, information posted on

website and publications. •

Seminars are conducted periodically with data users to identify the gaps in

information required by them and to set a forum of data compilers and data users. Post Project Reviews: •

Some objectives have become a continue practice on the basis of importance

of result achieved from them. The examples are Seasonal adjustment of Time Series data and IIP (International Investment position) which have become an ongoing activity of department due to its importance and demand in stake holders. •

Improvement in existing methodology on basis of survey results like

Foreign Investment and Liabilities Survey etc. Risk Register

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Report On “Management Practices in State Bank of Pakistan” •

The risk register are made to identify the risks, its’ severity and the ways to

mitigate them. The possible risk may be due to data loss, incomplete collection of data, and delay in collection compilation. S. No.

Risk

Risk Category *(H,M,L)

Mitigating Control

Checks for Data Reporting at Source •

Built-in checks and trigger points at source in the software have been

provided for data collection to ensure proper classification, coverage and proper format. •

Arrange meetings with banks to get their feedback on new data collection,

discuss their shortcomings in data supply and advise ways for improvements. •

Penalize banks for their blunders

Management Processes –Where we Need Improvement There are shortcomings in the process which are exhibited by low percentage of the employees but have high impact on the overall performance of the department. Lacking in Planning •

Mission and vision statements do not fully represent stakeholders and Location



Employees reprint previous years goals – easy to achieve



Preparation of goals by others colleagues or superiors

Lacking in Organizing: •

Nomination is volunteer in the projects but decision is made by the DMT



Conflict of authority for project members-Two bosses system



Diamond shape structure rather than pyramid - more middle level managers

Lacking in Leading: •

Some of the employees resist change – inertia and lack of adaptability



Liking routine jobs – lack of courage and confidence



Rotation concept in recognition awards

Lacking in controlling: DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan” •

PMS linkages to pay increase and all other compensations and motivation



Balancing factor PMS – to award more marks just to motivate a weak performer



Low context culture – rely on written things rather than actual performance



Bell curve concept – a high performer can get low grade in PMS



Conflict on performance evaluation in inter-department projects

E - S TAFFING SBP focuses on its human resources in order to implement the quality management and also of attract, motivate, train and retain its manpower. The department heads are responsible to monitor their staffing plans and to identify their requirements for human resource. The SBP has a full fledged Human Resource Division with working in the following five departments:      

Compensation and Benefits Division Employees Relations Division HRIS Division Performance Management Division Planning and Development Division Recruitment Division.

Hiring of Employees It is the function of Recruitment Division. The departmental requirement with Job Specification and Job Description are sent to recruitment division who are responsible to give advertisement, arranging test and interviews and other communications with candidates. The internal job postings are also done thorough HR hiring department. Jobs at SBP The jobs at SBP are challenging, rewarding and demanding. They provide opportunities to grow and develop. Since its inception it is continuously expanding, the employees very often get chance to broaden their skills, knowledge and get exposure. The Organization has

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Report On “Management Practices in State Bank of Pakistan” already started its operation internationally; hence the jobs are now more challenging and rewarding and offer its employees the opportunities to get international exposure as well. Selection Process The selection process involves written tests, interviews and performance or skills assessment tests which focus on assessing job-related criteria, and aim to provide objectivity and consistency in the hiring process. The representatives of department are present at time of interview and skill assessment test.

Job Descriptions Each and every employee of the organization needs to have a written job description duly approved by the department head. In fact, this is required at the time of giving requisition for a position. It is the responsibility of the department to update the job description of their work team members on a continuous basis. These revised Job Descriptions are sent to the Human Resources Department for their review and input. A consultant from Korea was hired for the purpose. XJob Specification The Job Specification is a part of the Job Description. The job specification consists of Academic knowledge, experience and competencies along with having Knowledge, skills and attitudes section into it.

Employee Training and Management Development Program After recruitment it is essential for each employee to take a Six months comprehensive training in NIBAF to understand the banking operations and role of central bank. Employee Benefits The organization offers a range of employee benefits. These include Provident Fund, Gratuity, Group Life Insurance, Medical, Leave (Sick, Casual, Hajj, Examination, Compensatory, Maternity,), Car Loan, house loans, Rest and Recreation leave bonus.To attract female employees SBP provide the girls hostel facility. DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

Performance Evaluation System The organization has a comprehensive performance evaluation system for its Management and Non-management staff. For Management staff, the performance Evaluation system is Objective based. This initiates with identifying the work goals for each employee at the beginning of the year, mutually agreed by the employee and the supervisor. The employees are appraised by head of the division after an interview which is conducted with employee. These results are submitted to Director who finally grades the employee and communicate the results to Performance Management Department of HR department. All this process is conducted electronically. Special committee is formed to decide about the appeals made by employees if he does not agree with his rating. In this case the whole case is invested and decision is revised in case of any discrepancy. To formulate and implement the system, initially a consultant from Malaysia was hired. Career Planning At SBP the career planning is done by each department, based on the performance of the employee and with consultation with the Human Resource department. However, the role of the supervisor and the department head plays a crucial role in determining the career plan of an employee. Equal Employment Opportunities The organization provides equal opportunities for growth and development without any discrimination of gender, group, caste or religion. The organization is very much concern for gender equality and provides equal opportunities to women at all the activities with equal participation. Women are encouraged to Apply and in recent past women batches have been recruited especially to increase their representativeness. Promotion

from Within

Promotion from within the organization concept is encouraged at SBP. Although, all positions are announced to maintain transparency of the entire hiring process, however internal employees are encouraged to compete for higher grade positions. This allows high motivation within the employees and allows employees to diversify their work knowledge. DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

Abbreviation: ADB-Asian Development Bank BIS- Bank of International Settlement BOP-Balance of Payments CMT –Corporate Management team DMT-Department Management Team GMT – Group Management Team HOD-Head of Department HOD-Head of Department HRIS-Human resource information system IDB-Islamic Development Bank IIP-International Investment Position IMF-International Monetary fund KRA-Key Result Areas KSE-Karachi Stock Exchange MFSM-Monetary and Financial Statistics Manual MPR – Monetary Policy and Research NIBAF-National Institute of banking and Finance PMS-Performance Management System RTGS-Real Time Grass Settlement SBP -State Bank of Pakistan SBP (BSC)-State Bank of Pakistan-Banking Services Corporation SDMX - Statistical Data and Metadata Exchange SDWH-Statistics & Data Warehouse Department SNA-System of National Accounts TNA-Training need assessment DADABHOY INSTITUTE OF HIGHER EDUCATION

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Report On “Management Practices in State Bank of Pakistan”

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Report On “Management Practices in State Bank of Pakistan”

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