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MCB bank Ltd. is 4th largest and most progressive bank in Pakistan. It was incorporated in 1947 by Adamjee group. Under nationalization Act 1974, the bank was taken into Government sector. From that point of time MCB like other nationalized banks performed ordinarily and modestly. The reason was lack of future oriented business plan, ill drafted strategy and ignorance towards employee’s career growth. This was happening under the umbrella of corrupt politicians and selfish bureaucracy who were fully focused and committed not towards the wellbeing of bank but towards their on wealth-piling goals. Despite that entire bank survived though on lackluster note.

The bank embarked into a new era in terms of banking style and business strategy after getting privatized in 1991. At the moment bank is rated as the modern, customer focused and career oriented organization which care and value its employees. This remarkable market repute is reflected by facts and figures as under:

6 times winner of Pakistan's best bank award in this century.

4th largest bank in respect to Asset base in Pakistan (Rs.440 billions)

More than 1000 state of art branches nationwide with 300 ATM

A solid deposit base of Rs.280 billions and Rs.300 asset base.

A satisfied and well served customer base of 4 million.

Approx 14000 well versed and energetic work force.

During the last fifteen years, the bank has concentrated on growth through improving service quality, investing in technology and people, strengthening its branch network and creating strong deposit base. The bank' vision “challenge and change the way you bank” is heavily relying on its motivated and skilled workforce which is backed by futuristic human resource policy outlined as under:

1) Vigorous talent hunt and management process

2) Providing growth opportunities to employees by fulfilling their potential

3) A just and transparent reward and career development system.


To study the reward system and career development of the MCB bank Ltd.


The research strategies that are adopted for this study are as follows:

Primary data collection

Internal memos, letters and annual reports

Participant observations

Interviewees were people from middle and lower management.

Secondary data collection



Reference books


MCB considers its employees not just as a cost but also as resource in which the company has invested and from which it expect valuable returns pay policies and programs are one of the most important human resource tools for encouraging desired employees behaviors. The advantage of paying above the market average is that it gives the ability to attract and retain the top talent available. This can translate into highly effective and productive work force. A good pay package is very important to motivate and retain an employee. Also money is a satisfier but it will not have the effect if other factors listed below are pushing to quit or to perform less diligently: ~

Job satisfaction

Career development Opportunity

Autonomy of work as much as practicable.

Competent line management

Good working environment and work ethics

The incentive schemes and incentive objectives have been clearly communicated to all individuals and monthly progress report also communicated to all concerned

1- Reward for passing IBP (Institute of Bankers of Pakistan) diploma examination

The banking diploma is a professional banking examination and carries due weight for staff members working in financial institutions and banks. Accordingly, the bank shall give due consideration to IBP diploma holders in hiring, increments and promotions based on their demonstrating abilities to handle the job in a better manner.

In order to encourage MCB bank employees to improve their knowledge in banking, the following incentives are offered for passing different of the IBP diploma:

Attempt at which passed exam



Stage 2

First attempt

Rs. 50,000

Rs. 70,000

Rs. 100,000

Second attempt

Rs. 30,000

Rs. 50,000

Rs. 75,000

Third attempt

Rs. 10,000

Rs. 15,000

Rs. 25,000

The above mentioned cash awards are available to all confirmed permanent employees working for the bank .further the bank at its sole discretion, may reimburse fifty (50%) of the course fee (once only) to the successful employee on acquiring DAIBP certification. .

2- Employee pilgrimage (A visit to Holy places in Saudi Arabia) sponsor scheme:

Every year the bank shall award ten pilgrimage packages to its employees. The method of allocating the hajj packages shall be following:

Eight through draw of names in supervision of at least three seniors’ members of the management team including representative of HRD.

Two through nomination of a management committee based on superior performance of the nominated employee.

As the fulfillment of this religious Rite is the dream of every Muslim, the sponsorship of this substantially expensive facility (approx. Rs. 250,000) is considered as a source of motivation.

3- Remuneration/ Salary Reviews:

The remuneration of employee at MCB bank is based on gross salary, allowances and perks commensurate with the requirement of the job, appropriateness of an employee to the requirements, security of the position and competitive forces.

While gross salary ranges exist within each grade category, moreover the ranges are dynamic and are expected to change from time to time. The schedule of administrative and financial powers, duly approved by the board of Directors, lays out the authority competent to approve salary and remuneration reviews in case of each level employee category. The approval authority in case of each level shall therefore be as per the schedule.

4- Performance Bonus:

The objective of this policy is to recognize and reward good performers and to distribute bonus in a transparent manner. To accomplish this, a link must be established between the performance of the bank as a whole and that of bonus distribution based on group and individual performance. For distribution and payment and payment of performance bonus, HRD with approval of management may use different assessment evaluation techniques from time to time.

Performance bonus may take any of the following forms:

Cash bonus

Employee stock options

Nomination for bank sponsored hajj package

Nomination to bank sponsored paid vacation

Any other considered appropriate

The employees may receive one to three month bonus subject to evaluation of accomplished objectives. In MCB the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager recommends a candidate from his branch for the reward purpose to HRD.

5- Medical entitlement:

The medical policy covers all employees of the company and their immediate family members. Immediate family members include.

Employees, their parents, their spouse and children.

Dependent daughter till her marriage or till her employment.

Dependent son till the age of 25 provided that he is fully dependent on his parents.

Divorced / separated / widowed daughters dependent on the employees without any age limit.

6- Other Employee Benefits:

Interest free or lower interest loan for Housing, Car/motor-bike and personal needs.

Phone bill reimbursement on home telephone for officers.


In order to gauge overall satisfaction level HRD shall conduct, internally or through use of third party facilitator, periodic employee satisfaction surveys. While no specific frequencies for surveys are instituted, an attempt shall be made to conduct at least one employee satisfaction survey every two years. This gives a fair picture what employees think about their career progression and motivation level in the Bank.


Promotions are also rewarded management technique to motivate employees. In MCB promotions are based on the merit and seniority (experience) bases, the one who performs well consistently over time gets reward in the form of promotion.

Promotion policy forms an integral part of an organization’s human resource function. it is a vital link between the employee and employer as it bridges the gap between the two, fostering positive relationship between management and staff. The bank’s policy has been designed with an objective to attract retain and motivate employees of high caliber, continuously upgrade their skills and competencies, provide reward system for acknowledging their good performance. Meeting of target and achievement of job objective and develop and maintain human resource policies which are market competitive equitable and consistent. Promotion process is undertaken after the performance appraisal has been completed and final performance rating reached.

Moreover the approval authorities as given in the schedule of administrative and financial powers shall be applicable depending upon the grade and employee category.


All permanent employees fall in the ambit of this policy. The eligibility criteria is comprises of following measurable attributes:

Job performance

Job performance of the employee to be measured in accordance with achievement of agreed and assigned targets and job objectives.

Scope for enhancement and enrichment

While recommending promotions the recommending manager must clearly demonstrate the job enhancement will accompany the promotion and the level of job enrichment proposed.

Ability to assume additional and enhanced responsibilities

An employee assuming higher responsibility and successfully accomplishing the enhanced responsibilities for a reasonable period of time may be considered for promotion however this must be documented clearly.

High motivational level

Employee recommended should have the energy level drive initiate and willingness to take the challenge of promotion and the enhanced assignment responsibility.

Superior communication skills

The employee recommended for elevation should demonstrate both written and spoken English and Urdu abilities to convince and to get the point across in comprehensiveness and amiable manner.

Service orientation

Belief in service philosophy understanding and appreciation of quality customer service attitude of timely and efficient service within preset parameters and knowledge of effective service delivery channels are preferable elements in employee being recommended for elevation.

Leadership potential

The employee being recommended for elevation should demonstrate the ability to lead a team understanding of empowerment and delegation, knowledge of motivational tools and techniques, desires and confidence to lead a team where required.


All the effort and commitment of the organization to formulate and implement a comprehensive reward system, has paid off the bank quite impressively. The achievements mentioned in the introduction of the bank are the fruits of this successfully planned system. Moreover the following figures speak themselves for the success story of the bank in the last fifteen years:

Maybank, Malaysia’ largest bank makes a joint venture by buying 20% share in MCB. Also MCB is poised to take up RBS operations in Pakistan.

MCB has AA rating for long term and A1 rating for short term.

Much improved customer service of international standard.

Among top company in stock exchange in respect to increase in share value.


A career can be defined as the “pattern of work roles of an individual”. Also the word career used to describe upward movement and advancement in the work role. Primarily it is the responsibility of the individual to plan and strive for the career development. But the organization can play a vital role in paving the path for a successful career. A progressive company does so because it provides huge benefits to it. Following is the list of a few of benefits:

Makes the organization attractive to the potential recruits.

Likely to enhance the image of organization.

Likely to encourage the employee commitment and reduce staff turnover.

Likely to motivate and improve job performance.

Arguably most important merit is the maximum utilization of potential


MCB faces much competition in the financial sector in terms of employee's attraction and retention. That is why bank is focusing on career development of their employees in which they enable the employees to better understand and develop their career skill. Career planning is the deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivation, and other characteristics; acquire information about other opportunities and choices; identifies career related goals and establishes action plans to attain specific goals. Career development is the lifelong series of activities such as workshops that contribute to the career development of employees. HR department develops the employee’s career development plans in which it predicts the logical step for their employees within five years.


After entry into the bank passing through a rigorous selection procedure, the staff has to undergo a professionally designed training in the staff college. This program is a blend of classroom and on the job training. Upon completion of this training staff is fully equipped with knowledge, techniques and skills which can make an individual asset for not only for a bank but for any financial institution.

Although bank's career development focuses on the newly recruited staff in order to prepare a strong team for the future. But the senior staff from all cadres is also required to upgrade the skills and knowledge from time to time. HRD Endeavors to maintain training centers, based on need, in all three regions that is in Karachi, Lahore and Rawalpindi/ Islamabad. All staff college equipped with audio visual and other training aids required. Experienced and trained lecturers are there to share and demonstrate their knowledge with the participants

At MCB the thrust of training initiative deals with the design and delivery of workplace learning to improve performance. Hence the mainstay of training philosophy is that the training department’s roles have shifted from focusing on training a person to focusing on performance improvement.

The needs of organization deals with some generic elements and department of training and development recognizes their influences on the design and delivery of effective trainings. Some of the most significant ones are:

intensified competition

rapid changes in the industry

a power shift to the customer

the need to maintain high levels of talent


These are the actions that HRD likes to take to ensure MCB bank competitiveness in the business environment.

Diversify the learning portfolio.

Expand the view on whom to train

Accelerate the pace of employee learning

Prepare our employees to deal with customer better

Make our employees believe that they have opportunities to learn and grow.

Ensure that our training effort support our strategic direction.



MCB has been operating for a long period of time and has been able to adjust with the changing environment because of its effective, human resource management. The HR practices of MCB have the following strengths:

MCB has the latest employee training and development approaches. Therefore it can adapt to all sorts of change and bring immediate improvement in work practices whenever the need arises.

BANK hires the most highly qualified and energetic people. This results in lesser HR problems as people are willing to take constructive criticism and focus on personal and professional development by focusing solely on achieving their goals, ultimately resulting in achievement of company’s goals.

MCB believes in making people realize their full potential and capabilities which is why jobs are designed to be challenging and goals are made to be achievable yet competitive. This results in a high level of motivation and job satisfaction for the employees and automatically promotes a healthy work environment.

The company has a very well balanced and realistic incentive and reward program. It also focuses on giving additional benefits to its employees apart from the basic remuneration. This results in employees giving their heart and soul in working for their employer.

The HR practices of MCB greatly enhance its image as a company that wants to contribute towards the society in every possible way. As the main focus is on developing better people not just better employees. This system is imitated by other rival companies as well.


Nothing is perfect as for as strategies and policies are concerned. Therefore some weaknesses can be pointed out.

MCB has a trend of maintaining long working relations with employees and sticking with the same people as long as it is productive. Most of these people are promoted from within the company to form the middle and upper management. This results in loss of creativity that can be recognized by external recruitment for these core managerial positions.

The employees are supposed to work at late hour without being paid additionally. This creates mental tension and employees feel that they are not treated justly.

CV’s are not properly entertained.

Certain non financial rewards such as ‘employee of the year’ which is used as motivation tool are not properly communicated to the employees regarding their importance.

The most common complaint that is heard by the employees is the biasness of immediate bosses. That creates a sense of concern with in the employees and they feel threatened.


The company can discover great potential through the future graduates as every generation is being taught in more effective manner that leads to better growth.

There is an opportunity to create the best image of the company in the mind of customers by adding the value added services.

With the expansion in the company business in Pakistan, the HR department can be expended in order to manage diversity of workforce.


With new market players entering the banking business, MCB being the leading company is facing certain threats:

A potential brain drain is on the verge of happening; with several top managers already skimmed away by competitors.

The chance of getting a better job with incremented pay package is luring many MCB employees to switch over to competitors.


To establish core competence and to bring competitiveness, MCB should implement numerous effective plans to improve the performance of its various departments. Supervisors must manage employee performance well in order for MCB to accomplish its mission and achieve its goals. Following are some recommendations for MCB, which we personally feel can be useful for the organization, its employees and the customers.

Effective Performance Management:

Performance management is one of the most important part s of a Supervisor’s or team leader’s job. Developing skills in performance management is wise investments that will help MCB achieve its goals. Managing employee performance includes:

Planning work and setting expectations

Monitoring and measuring performance

Developing the capacity to perform

Periodically rating performance

Recognizing and rewarding good performance

Sponsorship Scheme:

A big leap towards a stable and bright career is almost ensured by a high caliber degree in banking, finance or marketing. Therefore if the chosen staff is provided the opportunity to earn a degree or even diploma in said field it can be huge boost to his career as well as bank will benefit from fresh ideas. This scheme can also be offered to promising and genius children of staff.


Investment in people in an organization in any form never goes without breakthrough. More or less every person pays back in same coin. This is kind of chain reaction which ultimately construct the culture and image of the organization. MCB’s initiative to stick to a concrete reward and career development system in letter and spirit elevated the bank into an admirable position in the market. So according to many financial analyst and economists MCB has set a trend and new heights in customer service leaving many other to follow the suit in order to attract and retain the cream of future banking professionals.


MCB bank Ltd. Web site (

Human resource management by D. Torrington, L. Hall, S. Taylor 6th Edition Prentice Hall (2005)

Mr. Jabbar Hussain AVP MCB bank Ltd. Pakistan

State Bank of Pakistan Web site. (

The Dawn newspaper Web site ( www.dawn .com)