ACKNOWLEDGEMENT

Firstly, we are thankful to Almighty ALLAH, who bestowed upon us the knowledge and courage to complete this project.Then I would like to express our immense gratitude towards our institutionINSTITUTE OF SOUTHERN PUNJAB, Multan which created a greatplatform to attain profound technical skills in the field of BBA(HONS), thereby fulfilling our most cherished goal.We are, then, grateful to our respected teacher SIR FARHAN GILLANI whose proper guidance and always encouraging behavior helped us in completing our project efficiently.And last, but not the least, we are grateful to our loving parents for providing us all sort of moral and social support in life. Without their prayers our success would not have been possible.

STATE BANK OF PAKISTAN Introduction:TheState Bank of Pakistan is thecentral bankofPakistan. While its constitution, as originally lay down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The headquarters are located in the financial capital of Pakistan,Karachiwith its second headquarters in the capital,Islamabad.There are two subsidiaries of SBP namely State Bank of Pakistan-Banking Services Corporation (SBP-BSC) and National Institute of Banking and Finance (NIBAF). The Governor SBP is chairperson of Boards for both the subsidiaries.SBP BANKING SERVICE CORPORATION:SBP-BSC (BANKING Service Corporation) came into existence after bifurcation of State Bank of Pakistan in January 2002 and since then has been working as the operation alarm of SBP for currency and credit management, facilitating inter-bank settlement system, dealing in savings instruments of the government, collecting revenue and making payments for and on behalf of government and operational work relating to management of debt and foreign exchange. SBP-BSC Board comprises of all the members from the Central Board of SBP and the Managing Director of SBP-BSC.VISION statement OF SBP - BANKING SERVICE CORPORATION: To develop SBP into a dynamic and efficient organization equipped with requisite technology and human resource capable of extending sustainable support to the State Bank of Pakistan in achieving its objectivesMISSION statement OF SBP BANKING SERVICE CORPORATION:To provide excellent banking and financial services to stakeholders besides ensuring implementation of 4SBP policies in order to command their trust and respect

NIBAF National Institute of Banking & Finance:NIBAF was established by Pakistan Banking Council (PBC) and was taken over by SBP in 1997. NIBAF is the training arm and is responsible for design, delivery, development and evaluation of trainings.Vision of NIBAF is to be apex institute of Human research development in field of Banking & Finance

FUNCTIONS OF STATE BANK OF PAKISTAN:

Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals

TRADITIONAL Functions:The primary functions including: Issue of notes, regulation and supervision of the financial system, bankers bank, lender of the last resort, banker to Government, and conduct of monetary policy. The secondary functions including the agency functions like management of public debt, Management of foreign exchange, etc. Other functions like advising the government on policy matters and maintaining close relationships with international financial institutions.Promotional Functions: Development of financial framework. Provision of training facilities to bankers. Provision of credit to priority sectors. Islamization of the banking system

Departments of STATE BANK OF PAKISTAN:State bank of Pakistan is giant entity and has a very wide scope of operations which it performs in variety of fields related to banking. For better management and efficient as well as effective execution of these actions in different fields, State Bank of Pakistan has formed number of departments. Each department is exclusively responsible for taking care of all activities that belong to its departments scope. A list of more functional departments of SBP is given below:

1) Agricultural Credit Department 2) Banking Inspection (on-site) Department3) Strategic and Corporate Planning 4) Human Resource Department5) Banking Policy & Regulation Department 6) Banking Surveillance Department7) Business Support Services Department8) Domestic Market & Management Department9) Economic Analysis Department10) Exchange Policy Department11) External Relations Department12) Financial Market Strategy & Conduct Department13) Financial Stability Department14) Information System & Technology Department15) Housing Finance Department16) Internal Audit\ Compliance Department17) International Market and Investments Department18) Islamic Banking Department19) Monetary Policy Department20) NIBAF Karachi & Islamabad21) Off-site Supervision & Enforcement Department22) Payment System Department23) Research Department24) Risk Management and Compliance Department25) Micro Finance Department26) SME Finance Department27) Training and Development Department

Human Resource DepartmentOVERVIEW: Human Resources Department (HRD) at the State Bank of Pakistan is making continuous efforts to strengthen the participative role of HR. During the year, HRD remained focused on building a strong relationship between the management and employees. A smooth union referendum and a collaborative approach towards resolution of the unionized staffs problems were part of the efforts. After ten years, the referendum was a significant step towards having industrial relations between management and the unionized employees. Significant developments during the year also included reviews of various HR policies and practices to re-align these with the Banks strategic objectives.

HRD ACTION PLAN 2011-2015 :HRD developed a comprehensive five-year action plan in alignment with the overall strategic direction of the Bank. The plan focuses on three specific goals aimed at improving efficiency and effectiveness of the existing HR policies and programs.These goals are: To further improve SBPs work ethics philosophy, promote value-based performance culture, and enhance the effectiveness of various HR policies such as succession planning, performance management, recruitment and compensation, balancing bank-wide workload distribution, and implementation of capacity building initiatives in co-ordination with Training & Development Department. HRD plans to implement these targets in a priority defined phase wise approach within the next five years. OUR PEOPLE, OUR ASSETS: At the State Bank, we firmly believe that the principal source of our strength as an organization is our human resource base. Managerial attention at the Bank has therefore been focused on the need to continuously invest in people, provide them with the right incentives to perform better and to make merit and performance the criteria for professional and career development. At the State Bank, we strive to develop and sustain a work environment in which each employee is empowered, is provided with opportunities for professional growth and is recognized and rewarded for the contribution made towards achievement of organizational objectives. We value diversity in terms of the unique characteristics that each member of our team brings to the organization as reflected in diverse educational and professional backgrounds, cultural and gender perspectives. This mix positively impacts institutional approach and decision processes by providing broader horizon, helping along the way the institution to be a more aware and responsive organization. MISSION STATEMENT: To transform the State Bank of Pakistan into an Employer of Choice this nurtures talent through its enabling culture. VISION STATEMENT :We are committed to excellence at acquiring, developing and retaining the right talent by: Aligning our HR policies with market Serving as a strategic partner to the line Departments Administering superior and prompt HR services

In this Project we can discuss the following functions of HR department(SBP)

1. Recruitment & selection2. Training & development3. Employee benefit4. Performance appraisal system5. Performance management system (PMS)

1. RECRUITMENT & SELECTION RECRUITMENT AT SBP: (ENSURING COMPETITION, MERIT AND TRANSPARENCY) It refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job. In the perspective of managements philosophy regarding acquisition of talent, recruitment activity was concentrated at the entry level positions. This approach being in line with strategic needs of the Bank was undertaken to hire skilled human resource. This approach also serves as a progressive career path for our workforce through mechanisms such as career development and succession planning. Selection of the right people for the job is the first step towards developing an efficient institution. Great stress has therefore been laid on ensuring that the recruitment process at the State Bank is highly competitive, transparent and merit based. As a result of this conscious policy, we have been able to attract some of the top talent in the country in the fields of Economics, Finance, Business administration, IT, Accounts and Audit as well as Statistics. As an Equal Opportunity Employer we consciously seek diversity in terms of education, geographical representation and gender and have actively encouraged women to apply for positions at the State Bank. As one of the largest employers of professionals in the country, with intake of more than 70 fresh graduates at entry level positions and frequent recruitment at senior levels, we have successfully developed a system that is unblemished by nepotism, subjectivity and political interference, All recruitment is through open advertisement and follows a well drawn out procedure involving thorough scrutiny of all applications according to clearly specified criteria, written tests developed and administered by external experts and interviews by a panel that has representation from our Board of Directors as well as private sector specialists in the relevant field. This commitment to quality and merit will continue in our recruitment and other managerial actions. Eligibility Criteria for selection:QUALIFICATION:Masters Degree or 16 years of education (with at least 60% marks where percentage system applies, or, minimum 3.00 CGPA where GPA system applies) in Business/ Public Administration, Business Economics, Economics, Statistics, Commerce, Mathematics, Computer Science/ I.T from HEC recognized university

AGE:Maximum 28 years as on the last date of submission of applications to SBP-BSC. DEGREE COMPLETION:Candidates awaiting final result are not eligible to apply. Candidates should have fully completed all requirements of degree and must attached copy of Provisional Certificate, Mark sheet/ Transcript. WRITTEN TEST:The candidate meeting the above eligibility criteria are required to register themselves with NATIONAL TESTING SERVICE (NTS) for appearing in the written test.SELECTION PROCEDURE: Eligible candidates will be required to take a comprehensive written test in English Composition, Quantitative Skills and Current Affairs/ Intelligence/ General Knowledge. Candidates who qualify the written test will be invited to appear for Group Discussion. Only the candidates who qualify the Group Discussion phase would be eligible to appear before an interview panel on same date. Selection will depend on marks obtained in written test, Group Discussion and interview(s). Successful candidates will be selected in order of merit, as Assistant Direct in State Bank of Pakistan, Karachi. All appointments in State Bank of Pakistan are made in compliance with prescribed regional/ Provincial Quota requirement. The candidates short listed on the basis of merit of written test and available number of vacancies will be invited for interview before a selection board at SBP-BSC PRE-INDUCTION TRAINING: The selected candidates will be imparted up to 4 weeks trainingCOMPENSATION PACKAGE: The selected candidates will be offer appointment for the position. They will entitle to Consolidate monthly monetized salary of Rs 34,000/- in the salary range of Rs 34,000 79,350 Medical facility for self, dependent spouse and dependent children only as per banks rule Provident Fund, Gratuity, Leave Fare Assistance, Staff Loans & other facilities as per banks rules APPLICATION PROCEDURE: After the announcement of written test result by NTS. The application forms will be available online at www.sbp.org.pk/jobs/. Printed copies are available on all offices of SBPBSC across the country. Application sent via e-mail will not be entertained.

2. TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT DEPARTMENT (T&DD) OF SBP: Training and Development Department (T&DD) is responsible for assessing and arranging for the training needs of SBP employees. To address the requirements, training is organized on three tracks, i.e., central banking, function specific, and management development. The department liaises with reputable domestic and international institutions for these training needs. Officers received foreign training also. A total of 267 officers benefitted from training at prestigious local training institutions. Under the SBP internship program, 219 interns from within the country and three interns from foreign institutions were facilitated. T&DD arranged central banking trainings on important subjects like Operational Risk Management, Financial Crisis Management Lessons Learnt, How to Inspect Quality of Bank Assets, Assessment of Banking Sector Stability, Islamic Housing Finance, Agricultural Lending Documents, and Risk Management. A Foundation Training Program for promoted officers Grade-1 was arranged at SBP.IN-HOUSE TRAINING: In-house trainings are designed to lower travel cost, minimize displacement from work stations, and attract maximum participation. The Department coordinated with NIBAF to deliver 16 courses for 282 participants, including 4 specially tailored management development soft skill courses facilitated at SBP. HIGHER EDUCATION: To develop its human resource for future challenges, scholarships were granted for higher studies pursued domestically and abroad. Three employees were enrolled in foreign universities, i.e., 2 at Williams College, USA and one at Australian National University, Australia while 23 officers were enrolled in domestic universities in the evening MBA/MS program .DOMESTIC TRAINING: For the professional development of its employees and to further enrich their knowledge base in function specific and management development areas, SBP facilitates its employees participation in domestic institutional trainings at IBA, IBP, LUMS, PMI, PIM, and others.

FOREIGN TRAINING:To participate in training programs on central banking offered by foreign training institutions, SBP encourages its employees and provide them opportunities. Officers attended various training courses, workshops, seminars, pertaining to core & support functions of the SBP. These programs were offered by the IMF, Federal Reserve Bank of New York, ADB, IDB, BNM, FSA, MAS, Boulder Institute of Microfinance, AUSTRAC, APRACA, BNM, Toronto Centre,and other prominent institutions.

3. EMPLOYEE BENEFITS:Compensation and benefits provided Base Pay Overtime Pay Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves, retirement. Staff Loan Policy Facility Of Banks Car & Petrol Ceiling Medical Facilities Telephone Charges At Residence Facility Of Newspapers & Journal Family Pension

LEAVE ENTITLEMENT: SBP is providing a various benefits to their employees such as leave benefits and advances. In leave benefits every employee has two leave accounts: RLA & SLA. Employee cannot obtain only medical or sick leave , they have various reasons of leave such as attend party, attend seminar, outstation leave, domestic problems, R & R leave etc. Employee can avail leave facility for perform of Hajj. SBP also provide Rest and recreation 15 days leave to their employees. R and R leave avail once in a year. In SBP female employees is also availing female leave facility maternity and iddat leave. Maternity leave can avail thrice during whole period of job. SBP made proper process of leave application to facilitate to their employees. After retirement/ resignation/death net qualifying service form is very important for calculation of Net Qualifying Service and case forwarded to internal monitoring unit for their In order Certificate.ADVANCES: The types of loans/Advances provided to employees are as follows: Personal Loan Staff Loans Motor Car Loan Motor Cycle Loan House Building Loan Personal Computer & Printer Loan 4. PEFFORMANCE APPRAISALThe process by which a manager or consultant (1) Examines and evaluates an employee's work behavior by comparing it with pre-set standards.(2) Documents the results of the comparison.(3) Uses the results to provide feedback to the employee to show where improvements are needed and why. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.OBJECTIVES OF PERFORMANCE APPRAISAL: To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development. To provide a feedback to employees regarding their performance and related status. It serves as a basis for influencing working habits of the employees. To review and retain the promotional and other training programs.

5. PERFORMANCE MANAGEMENT SYSTEM: OBJECTIVES OF PMS: The major objectives of performance management are discussed below: To enable the employees towards achievement of superior standards of work performance. To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism. Promoting a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organizational goals, providing a regular and a transparent feedback for improving employee performance and continuous coaching. Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment. Promoting personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills.

CONCULSION:State bank of bank have excellent human resource management system for their employees for their motivation and satisfaction. Best policies attract and retain the best employees. Human resource management is the most pivotal element affecting an organizations overall performance. It is directly related to employees commitment with the organization and leading organizations always use it as a tool to attract and retain the most talented human resource capital.TRAINING: SBP use on the job, off the job training technique and most of the time its depends on need, training improve employees performance, last year SBP are providing 10% external and 20% internal training. RECRUITMENT AND SELECTION:SBP use internal recruitment ,external recruitment and both type of recruitment sources, they have the best hiring system ,its selection procedure include written test ,interview, group decision, SBP HR team act as a consultant to enhance the quality of the applicant pre screening process. EMPLOYEES BENEFITS:State bank of bank provides excellent benefits for their employees for their motivation and satisfaction. Its provide career advancement path to their employees ,SBP clearly communicate its goal and strategies to their employees. PERFORMANCE MANAGEMENT SYSTEM:SBP performance management system is excellent because its performance appraisal system is a two way communication, employees are participated in the job related activities, salary increment and career development is the main reason for conducting performance evaluation, SBP performance management system is clearly defined in the organization ,employees are free to argue about the performance evaluation result if they are not satisfied.

So overall human resource management system is excellent in SBP. It is the most dynamic and progressive public sector organization of the country and is playing a vital role in the economic revival, growth and development of Pakistan.