Organizational Behaviour Final Presentation.ppt

Difference of OB practices between two Banks of Pakistan.

2. Organizational Behavior

3. Group # 2
Marium Hasan
Anam Aslam
Madiha Iram
Sofia Izhar

4. “Organizational Behavior practices at
NIB and Faysal Bank”

5. HISTORY
Faysal Bank
1987 : Faysal Bank started operations in Pakistan as a
branch set-up of Faysal Islamic Bank of Bahrain.
1995: As a locally incorporated Pakistani bank under the
present name of Faysal Bank Limited.
2002: Al-Faysal Investment Bank Limited became
associated and merged into the current Faysal Bank.
Faysal Bank Limited is a full service banking institution
offering
Consumer
Corporate
Investment Banking

6. HISTORY
NIB
2003 :NIB started as NDLC-IFIC Bank
2007 : acquired majority shares of PICIC
Number of branches then increased from 45 to 240.
NIB business units include:
Small Medium Enterprises and Commercial
Banking Group
Corporate and Investment Banking Group /
Financial Institutions
Consumer and Small Enterprise Group
Treasury

7. VISION

“Excellence in all
that we do”

8. MISSION
“Achieve leadership in
providing financial
services in chosen markets
through innovation”

9. VISION
To be the most admired
Financial Institution in
Pakistan

10. MISSION
To improve the quality of
life for millions

11. VALUES
Four Threshold values — values at the heart
of our brand.
Teamwork:
Respect 
Integrity
Professionalism

12. VALUES
Four Differentiator values — values that set
our brand apart.
Passion
Innovation
Responsiveness
Compassion

13. VALUES
Integrity
Respect
Passion
Excellent
Fairness

14. Objectives
To offer the market banking products and services which
are needed, convenient, marketable and Shariah
complaint.
To grow as an institution with prudent growth and
profitability in view.
To build relationships based on trust and mutual benefit
with customers and shareholders.
To maintain a highly efficient and motivated employees
base.
To continue being socially conscious organization.

15. Objectives
Enabling success; Realizing dreams

16. Services and Products
Currently Faysal Bank is facilitating its
clients through following products and
services that are divided into four major
categories: 
Deposit Accounts
Consumer Loans
Corporate & Investment Banking
Services

17. Services and Products
Financing Facilities
Savings and Investments
Insurance Products
Mortgage Products
Alternative Distribution Channels
Value Added Services

18. Competitors: All Private Sector Banks
JS BANK LIMITED
ALLIED BANK LIMITED
KASB BANK LIMITED
ARIF HABIB BANK LIMITED
MCB BANK LIMITED
ASKARI BANK LIMITED
MYBANK LIMITED
ATLAS BANK LIMITED
NIB BANK LIMITED
BANK ALFALAH LIMITED
SAUDI PAK COMMERCIAL BANK LIMITED
BANK AL HABIB LIMITED
SONERI BANK LIMITED
CRESCENT COMMERCIAL BANK LIMITED
STANDARD CHARTERED BANK (PAKISTAN) LIMITED
UNITED BANK LIMITED
HABIB BANK LIMITED
HABIB METROPOLITAN BANK LIMITED
FAYSAL BANK LIMITED

19. Head of
Corporate &
Investment
Banking
Nauman Ansari
Head of
Retail
Banking
Taimur Afzal
Head of
Treasury
TBD
Investment
Banking
Irfan A Khan
Head of
Services
Ahmed Kamran
President & CEO
Naved A Khan
Company Secretary/ Legal
Siddique Memon
BOARD OF DIRECTORS
CEO Secretariat
Seema Hasan
Trudy Ann D’souza
Head of
Audit
TBD
Head of
Commercial
Banking
Shahid W
Mahmood
Business Manager
TBD
Audit Committee
Head of HR
Seemin Shafi
Head of
Compliance
Nasir Islam
Head of
Communication
TBD
Head of
Risk / CCM
Acting –
Khalid Tirmizey
Chief Financial
Officer
Mohammad Iqbal
Corporate
North
TBD
FI
Mustafa Hamdani
Consumer
Finance
Farah Naz
Branch
Distribution
Sharif Khawar
Wealth
Management
TBD
General
Services
Arif H Khan
IT
TBD
Advisor on
Special Assets
Bashir Shaikh
Product Development
Payment Solutions
Samih H Khan
Operations
Iqbal A Zuberi
Head of
Strategic
Development
Aarij Ali
Head of
Service Quality
TBD
Head of
FIU
TBD
Head of
Equity Capital
Market
TBD
Commercial
North
TBD
Commercial
Central
TBD
Commercial
South
TBD
Corporate
South
TBD
Transaction
Banking
TBD
Cash
Management
Mustafa Hamdani
DCEO
&
Head of
Islamic Banking
Khalid Tirmizey
Agri Finance
Ali Raza

21. ORGANIZATIONAL
BEHAVIOR

22. Organizational behavior and FBL
We define organization behavior with respect to
the mission and vision of our company. We have
changed the way our management has been
working, changed the values and as a result we
are moving towards a more fluid and responsive
reporting line. Our new infra structure is flexible
and employees are motivated when they
perform well

23. Organizational behavior and NIB
The organization behavior flows within the
organization according to its values and
vision being followed by its managers. It
is described by our five values that are
practiced by our employees for the
development of organization behavior.

24. THE INDIVIDUAL

25. Individual differences at FBL
Values
According to Faysal Bank Organizational values and
personal values are not different. Values system is formed
from religion and society. When a person becomes a part
of the firm his values are merged with values of the bank
and they go hand in hand.
Perception and Personality
Since the change of the management of Faysal bank, it has
been modifying its conservative and traditional culture
towards more friendly culture. Before this change there
was no concern of individual differences on the basis of
perceptions and personality. At the moment it is making
an effort to consider these differences but all of these
activities are going at a very slow speed.

26. Individual differences at FBL
Attitude
When the job is satisfying the workers become
hardworking and dedicated because job satisfaction and
attitude are positively correlated. If an employee is not
performing well or is lacking interest then the manager
tries to put him in the position that is appropriate to the
interest of the employee. Training need assessment is
carried out every year in order to find out which
employee needs training and grooming. Personality and
working issues both are catered in this assessment.

27. Individual differences at NIB
Personality:
Before putting a person in a particular job his personality is judged
in the interview and then accordingly he is placed in a respective
place.
Attitude:
NIB usually hires fresh graduates, and then their attitudes are groomed
according to the requirement of the job. So in order to do so newly hired
employees are segmented into different groups according to their
suitability for the required job. Grooming of hired staff starts from the
first day at work.
Perception:
Due to strong bonding and understanding environment there is very
low possibility of negative precision by any employee regarding any
issue.

28. Shaping of Vital Attitudes at FBL
Faysal bank has now started placing importance
seriously on employee differences on the basis of
vital attitudes. Now it is promoting employee
participation at branch level to increase
perceived organizational support and also on
the way to create an environment that will
develop a positive relation between employee’s
job performance and job satisfaction.

29. Shaping of Vital Attitudes at NIB
At NIB the most vital attitudes are
Organizational commitment and job satisfaction.
Managers at NIB give open option to the employees to
perform the job that they prefer and are most interested
in. Like if an employee is more interested in sales work
rather the operational work, managers slowly try to
move them to their desired places.
Also the employees are encouraged to come forward and
throw their opinions, this shows that NIB is really
concerned about their employee perceived
organizational support and is constantly promoting the
employee participation to increase perceived
organizational support.

30. Decision making at individual level: FBL
The factors which usually influence the
perception of the decision maker are the
situation and the perceiver characteristics
which basically include attitude, interest and
experience.
For example if any employee faces a situation in
which there is extreme shortage of time and that
situation needs immediate handling then
according to what he perceives supported by his
past experience, decision is made by him

31. Decision making at individual level: FBL
Decision making models:
When making a decision, an employee
considers a number of different alternatives.
Then the pros and cons of the acceptable
alternatives are considered keeping in view
the interest of the organization and then the
best alternative is selected. The decision is
mostly made on rational and intuitive basis.

32. Decision making at individual level:
NIB
Here the main factors that affect the decision
making at individual level are also Situation
and perceiver factors.

33. Decision making at individual level:
NIB
Models used:
If a manager has to make decision about any
employee problem and assessment, then the
decision is made purely on intuitive basis.
If Cluster managers and Branch managers have
to make decisions about certain assigned
agendas then they have to decide all the matters
rationally.

34. Motivation at FBL
To motivate the employees, the HR
department at faysal bank sets the
rewards (salaries, bonuses etc) according
to the performance and the target
achievement of the employees.
Employees are motivated after carrying
out the employee satisfaction survey.

35. Motivation at FBL
There are different kinds of rewards Faysal Bank gives to their
employees which are as follows:
CEO club Membership
Those who have performed exceptionally well are given a
membership of the CEO club and other high performances
are given appreciation letters.
Incentives are given to sales persons.
Performance Bonuses
Fixed Bonuses
Increment in salaries of those with outstanding performances
Dinners of all the members of the branch with out standing
completion of targets
Off-days ( usually 2 per month)

36. Analysis of Motivation at FBL
It can be concluded that at present the motivation level of
the employees is not very much high because of the
currently announce salary increments, which is not up to
the employees’ expectation level and because of some
other reasons such as, increase workload etc.
The most important thing regarding faysal bank is, its
average salary structure is low as compared to other
banks in the same line. Salary is one of the most
significant extrinsic motivators so faysal bank must do an
effort to provide its employees healthy salary packages.

37. Motivation at NIB
NIB believes that the only way employees will fulfill our
dream is to share in the dream. Reward systems are the
mechanisms that make this happen.
•Cash Bonuses
•Promotions
•Increment in salaries
•Allowances like (Fuel allowance, mobile allowance)
•Commission Certificates
•Best Performer,
•Best service provider,

38. Motivation at NIB
Encouragement words
Delegation of authority
Make team leaders
Staff recognition and reward campaigns
(High Energy Customer Experience
Award)

39. Analysis of Motivation at NIB
Management of NIB Bank continuously appreciates
the good work done by the employees for the achievement of
goals, that motivate the employees to work harder in the
future.
Most of the employees in NIB Bank are satisfied but very few
of employees showed that they are not rewarded for their
performance but the overall result is positive and this shows
the level of motivation employees get from rewards.
Many of the employees are being rewarded after
accomplishment of their sales target in such way that their
management takes them to the picnic or invite them for
dinner and the rewards like picnic and dinner from NIB’s
management is being rewarded most frequently.

40. THE GROUP

41. Team building: FBL
At Faysal Bank, teams are not made on a regular basis.
However, sometimes teams are made for a special
purpose. Like the president of faysal bank forms a team
of certain individuals. The purpose behind forming such
a team is to discuss the most important issues of the
organization. These teams can be described as having a
nature of Problem-solving teams.
 
On the other hand as faysal bank has a value of
“Teamwork” as its threshold value so the concept of
team-building is applied in the organization on the
whole.

42. Team building: NIB
At NIB, teams are made when required. For example, few
months ago mass hiring was required, for that purpose a
temporary team was made of 10 to 12 people who participated
in interviewing them. Strong bonding always exists in NIB
within the staff of one branch or between staff and supervisor.
There are some cases when whole staff of the branch work as
a team e.g. if a branch manger fails to achieve the required
agenda on his part then other branch managers contribute to
meet the overall agenda of the region.

43. Communication at FBL
Communication is in a more formal way within the
organization. These formal channels are established to
transmit messages related to the professional activities of
members. Mostly the orders come in written form from
higher authorities to lower authorities. The most formal
way is IOM.
 
IOM:-
The most important and formal way of
communication used at faysal Bank is IOM that is
“Inter Office Memorandum”.

44. Communication at FBL
Directions of Communication at Faysal Bank:-
At Faysal bank communication flow both vertically and
laterally in order to ensure proper and timely
understanding of various matters.
 
Vertical Communication:-
Downward Communication
Upward Communication
Lateral Communication:-
There is a continuous flow of information from one branch
to another branch.

45. Communication at FBL
Other sources are
Fax
E-mails
Telephonic calls
FBL intercom system ( 2 lines in every
branch for Branch manager and Manager
Operations)

46. Communication at NIB
At NIB communication also flows both vertically
and laterally in order to ensure proper and timely
understanding of various matters.
Vertical Communication:-
Downward Communication
Upward Communication
Lateral Communication:-
There is a continuous flow of information from one branch
to another branch.

47. Communication at NIB
Sources of communication:
Fax
E-mails
Telephonic calls
NIB messenger

48. Leadership styles and their
importance at FBL
•There are certain situations in which managers have to lead in an
autocratic way. For example at branch level managers have to take
certain initiatives where they feel that they do not need to consult
the employees rather they just have to get work out of the
employees as wanted by them.
•In most of the situations, managers lead in a very democratic way.
For example in the case of dealing the most valued customers,
managers come first to oversee the situation and then with mutual
understanding (managers and lower staff) the case is resolved.
•In the same way, there come certain situations where employees
lead blindly giving all the responsibility on the employees. This
style (delegative) is used when managers think that the employees
are capable enough and can resolve the problems on their own.

49. Importance of leadership
according to FBL
Faysal bank considers that managers
are very important in leading the whole
organization. Because they are responsible
to give the ultimate directions to the
employee about the work. If mangers would
be loyal to their interpersonal, informational
and decisional roles, then there will be no
ambiguity of goals which are to be achieved.

50. Leadership styles and their
importance at NIB
Regional, Cluster and Branch managers use the
Autocratic style in those situations where they feel that
they do not need to consult the lower level employees and
that they can lead without any confusion.
Participative style is the most widely used style at NIB.
This style involves the mangers including one or more
employees in the decision making process (determining
what to do and how to do it).
Delegative leadership style is used by the managers when
they think that employees are informed and skilled enough
to make decisions on their own. This style is used in the
situations where employees have to make decisions in their
respective departments. Employees just have to inform the
managers and do what they think is right.

51. Importance of leadership
according to NIB

According to NIB, the overall performance of an
organization is dependent on the leaders and their
leadership style because leader is the one who is a source
of ultimate motivation for the employees. NIB recognizes
the importance of leadership in such a way that it makes
managers feel that their success is the success of the
overall organization. So in order to achieve success NIB
tries to motivate its leaders and finally achieves the
performance at collective level.

52. Politics at FBL
The culture of faysal bank has been slowly moving from
a conservative and rigid one towards a flexible and
friendly culture, as a result the organizational politics is
decreasing. So they are still on the way of improving
their political issues
But if we talk about present, the level of politics at Faysal
bank is moderate. Practices like Leg-pulling and back
biting are still seen at faysal bank. Especially when
performance appraisal is carried out employee do
complain about sub-ordinates and try to compel their
managers towards what they are saying.

53. Politics at FBL
Whistle Blowing:-
In order to create climate of transparency in the
organization, staff can raise genuine concerns
about possible malpractices without fear of
reprisal. The aim of these procedures is to ensure
that employees making allegations of
malpractices in good faith can be confident that
they will suffer no detriment for having raised
their concerns and that any allegations of
malpractices will be fairly investigated.

54. Politics at NIB
The level of organizational politics at NIB is very
low (according to the managers). Avoidance of politics is
realized by discouraging it at even branch levels. Employees
who are involved in leg-pulling are handled by the
managers in a very effective and harmless way. They try to
listen to the employee first and then do what they think is
legitimate. They are always in an effort to create a crystal
clear environment.
The open-door policy at NIB is practiced to keep the level of
politics at minimum. Employees are encouraged to speak
whatever they want to say about any sub-ordinates or any
higher level employee. But employees who come with
complains are not at all energized to come with those
attitude again. They are taught how to deal with personal
issues and how to make their perceptual ability more
positive.

55. Politics at NIB
The open-door policy at NIB is practiced to keep
the level of politics at minimum. Employees are
encouraged to speak whatever they want to say
about any sub-ordinates or any higher level
employee. But employees who come with
complains are not at all energized to come with
those attitude again. They are taught how to
deal with personal issues and how to make their
perceptual ability more positive.

56. Conflict at FBL
Mostly the conflicts arise because of change in
opinions. Conflicts among the employees of the same
department are first tried to be resolved by the manager.
If it is persistent or is not possible to be resolved by the
manager then it is taken to the line manager. And if the
line manager is also unable to resolve it is finally taken to
the HR department.
For example: At one of the employee all the employees
complained the area manager about the unethical
behavior of manager operations. He used to frighten
others and create conflicts so as a result he was shifted to
another branch as a punishment.

57. Conflict at NIB
At NIB the word of conflict is replaced
by Competition. The managers make effort to
encourage competition besides conflict.
Employees are taught to make the best use of
their abilities and also focus on what others
want to say. In this way employees not only feel
that they are respected but they try to respect
each other also.

58. THE ORGANIZATION
SYSTEM

59. Structure of FBL
We are placing the structure of faysal bank under the
mechanistic model as majority of the characteristics of
faysal bank is of this model except the wider span of
control.
The structure of faysal bank shows that there is a well
division of labor for the task to be performed that is every
department has its own specialist for their respective job
e.g. in accounts department accounts specialist sits to do
finance related tasks, in HR department HR specialists sits
in the same way every department have its own specialists.
The complex hierarchy of Faysal Bank shows that it is
characterized by extensive departmentalization. There are
lots of departments including HR, Compliance, Strategic,
Treasury, Commercial, Finance, Retail banking and so on.

60. Structure of NIB
The structure on NIB also lies under mechanistic model
•There is also very clear division of labor for work at NIB.
There are number of departments like Information
technology, finance, operations, human capital and others.
•Clear chain of command is also there in the organizational
structure of NIB as it is characterized by unbroken line of
authority.
•Decisions for the organization are made by the authorities
that are the president and business and functional heads
but country and regional heads are also involved. So the
decision making is decentralized.

61. ANALYSIS OF STRUCTURE OF
BOTH ORGANIZATIONS
NIB came into being two years ago so it is still a new bank
as compared to Faysal Bank. As compared to NIB, Faysal
Bank is a large and recognized bank in Pakistan. But the
structure of two organizations is not much different.
NIB since the first day of its operations has developed a
structure that is a mixture of good characteristics of both
mechanistic and organic structure. It has decentralized
decision making process, clear chain of command, high
work specialization and also wider span of control.
On the other hand, although Faysal Bank is older than NIB,
but recently its management has changed. That resulted in a
dramatic change in its culture and structure. So it may not
have adopted all the proper characteristics of any structure
but majority of its characteristics in its current state lies in
mechanistic structure.

62. Comparison of both Structures
As far as the comparison of both banks is concern,
it would be right to say that NIB has structure
advantage over Faysal Bank. It is due to the
reason that NIB is using the characteristics of both
mechanistic and organic structure. It has omitted
those characteristics of both structures that is
barrier in their way of success and adopted all
those characteristics that are beneficial for their
organization.

63. Culture at FBL
The Management at Faysal Bank has gone under
a huge change in the previous year. According to
the employees the culture of faysal bank before
the change of the management was not much
flexible. The environment was not friendly
enough for the employees to raise their voices
regarding any issues. The culture was of close
nature. But after the change of management, there
has been a vital change in the culture. Employees
are now moving on the ways to develop a
friendly and open culture but at a slow pace.

64. Culture at FBL
Developing the Culture:
To promote its culture Faysal bank is strengthening its
Compliance department. Compliance is actually the
fulfillment of rules formed in order to run the
organization in a more effective way. The board of Faysal
bank has emphasized the importance of adhering to laws,
regulations and policies with zero tolerance towards non-
compliance.
The objective of compliance is
To preserve the reputation of FBL
Maintain FBL’S core always acts in accordance with
the requirements of all relevant legislations and
standards.
Always acts in accordance with policies and
procedures which should be consistent with
applicable rules and regulations in Pakistan.

65. Culture at FBL
Strong or weak culture:
Faysal bank is on the way to make its culture a
strong one. Because of the change of the
management its culture has undergone a change
also, that is from rigid and close culture towards
friendly and open culture. So at present its
culture is neither a strong or weak rather it is a
moderate culture heading forward to become a
strong one. Some of their general values are
integrity, responsible communication, excellence
and respect.

66. Culture at FBL
Do’s and Don’ts at FBL
Do’s :
•You should know your product features
•Always be dressed as a professional
•Listen to the customer
•Be courteous.
Don’ts:
•Don’t force a customer towards a product if they are not
interested
•Do not tell the customer about internal and confidential
policies
•Do not ask the customer personal questions he doesn’t want to
answer
•Never tell the customer that even I don’t know how this
product works as this product works as this is new for me too.

67. Culture at NIB
The culture of NIB is widely practiced all over the
organization. Since the time NIB has acquired PICIC
Bank, it is on its way to achieve success by developing
and promoting a flexible and friendly culture. The
stability it has acquired shows that its culture has been
happily accepted by its employees.
Developing the Culture:
In order to get familiarize the new employees with its
culture NIB provides them with an “Employee
Handbook”, in which all the rules and policies are
mentioned which are expected to be followed by all
the employees entering the organization. And from
time to time amendments are made according to the
prevalent situations.

68. Culture at NIB
Strong or weak culture:
The culture of NIB is a strong one. The situation
of norms in Nib’s culture is fair enough
according to the manager we interviewed. Most
of the employees follow the norms set by the
organization and they are satisfied with them,
but we found some employees who are willing to
improve the conditions. The major factors of
social norms are friendliness, trust and mutual
support. According to the employees in NIB
Bank the conditions of trust and friendliness are
pretty good and they are willing to increase
mutual support.

69. RECOMMENDATIONS
As the turnover rate of Faysal Bank is high they should
try to create within their employees a strong bonding
and a confidence that the firm cares about them so that
they can become loyal with the firm. They are providing
very low salary packages to their employees. They
should increase their salaries so that the employees
don’t feel a need to leave the organization for better
salaries.
Faysal bank should provide team building retreats so
that the employees get time to relax and when they
return they can work with a fresh mind and in a more
effective way.

70. RECOMMENDATIONS
They use illegitimate method to handle complaints like
whistle blowing. So they should use legitimate method
which is more appropriate because both the parties sit
together and resolve issues.
They should make cross functional and cross
hierarchical teams in order to minimize the
communication gap and a better understanding of each
other.

71. RECOMMENDATIONS
They mostly hire fresh graduates and post graduates.
They should also hire experienced employees so that
the positions at the higher level are taken care of in a
better way as well as complex situations are with
experience and knowledge.
NIB Bank should reduce conformity by giving rewards
to employees for suggesting more effective idea in the
benefit of the organization this will not only provide
wider range of ideas but also act as a motivational tool
for their employees.

72. ACKNOWLDGEMENT
We would like to express our gratitude to our organizational
behavior teacher Prof. Shakoor Rizvi, who gave us this
opportunity to fulfill this report through his dedicated
teaching and coaching style.
Secondly we would like to thanks Miss Nadia
Fayyaz, the Branch manager (z-block defence) and
Mr. Asad A. Syed the HR Business partner at area
office Lahore.

73. THANK YOU