Life In The (Jewish) Ghetto Essays - The Holocaust,

Life In The (Jewish) Ghetto Life in the Ghetto It is generally recognized what went on between the Jews and the Germans during World War II. Tons of Jews were executed in light of Hitler's contempt, Hitler's oppression, and Hitler's anger. While numerous individuals today despite everything recoil at the idea of life in inhumane imprisonments, many don't know about the brutal reality that existed in the Jewish ghettos. The word ghetto isn't just the most alarming spot in America yet additionally a word used to allude to a Jewish people group. These ghettos or networks were the holding regions of many, numerous Jews who had to perform slave work for the Germans during the war as opposed to going to death camps. In Germany, during the beginning periods of the war, an ever increasing number of occupations were shut to Jews, and the free callings were completely prohibited to them. In any case, during the drafting of a general law intended to absolutely uproot the Jews from their situations in the economy, it got obvious to the Germans that the issue couldn't be illuminated without at the same time making room for expanded displacement. On the off chance that the Germans confiscated them, they would never again be a weight on the German economy. In June of 1938, a man named Martin Bormann, following up in the interest of the fuhrer's agent, Rudolf Hess, sent German gathering activists a mystery order a bout the expulsion of Jews from the economy. In a Nazi gathering hung on October 14, 1938, a man named Herman Goring, who was second in power just to Chancellor Adolf Hitler, pronounced that Aryanization (making the world one Aryan race) was the state's, and just the state's anxiety, including that he was not set up to apportion outside cash to discard the Jews. He additionally included the comment that if the need emerges we should set up ghettos in the large urban areas, thus it appears the stage was set as this was the first run through notice was made of the arrangement to set up Jewish work detachments. Initially, the ghettos shouldn't be perpetual organizations, yet utilized as transitory death camps until it was conceivable to locate a definitive answer for the issue of discarding al the Jews. The main known occasion of foundation of a ghetto was in December of 1939 of every a town called Leczyca in Poland when the Germans endeavored to isolate the Jewish populace from the Poles. An unmistakable case of the manner by which huge networks were eliminated was the destiny of Kalisz, one of the most established Jewish people group in Poland with a populace of twenty thousand at the episode of the war. The two Germans and Poles participated in the merciless assaults against the Jews. The Jews got no opportunity. Numerous Jews fled, somewhere in the range of 7,000 arriving at Warsaw. The solid men staying in Kalisz were sent to work in the camp, while the feeble were butchered in a close by backwoods. By October of 1940, just two or three hundred Jews were left in the city. The main ghetto to be set up in a precise manner was the Lodz ghetto. Legislative leader of the Kalisz-Lodz District, Friedrich Ubelhor, had arranged the thought for a ghetto in Lodz since December 10, 1939. Ubelhor proposed two things. The first was to shut off a large portion of the Jewish populace in the northern piece of the city, where the vast majority of the Jews lived, and to move the Jews from different pieces of the Lodz territory to this region. The second was to choose those fit to work and move them in another ghetto, really a work camp, where they would be sorted out in the process of childbirth regiments. The initial phase in setting up Ubelhor's work camp was to initially fix the fringes of the ghetto and work out the issues of transport through the lanes .The Germans and Poles likewise needed to see new homes as resettled in. Different components that had an influence were fixing and guarding the ghetto, arrangements for clinical consideration, sewage, deny evacuatio n, entombments, and fuel essential for warming. The reason for building up the ghetto in Lodz concentrated basically on three circles: (1) the extradition of whatever number Jews as could reasonably be expected, with inclination given to the

Employee Benefits Required By Law Essay -- essays research papers

Worker Benefits Required by Law       The lawfully required representative advantages establish almost a fourth of the advantages bundle that businesses give. These advantages incorporate business commitments to Social Security, joblessness protection, and workers’ remuneration protection. Out and out such advantages speak to around twenty-one and half percent of finance costs. Standardized savings      Social Security is the governmentally directed protection framework. Under current government laws, both boss and representative must compensation into the framework, and a specific level of the employee’s pay is paid up to a greatest cutoff. Government disability is required for representatives and bosses. The most critical special cases are state and neighborhood government workers.      The Social Security Act was passed in 1935. It gives a protection plan intended to repay secured people against loss of income coming about because of different causes. This loss of income may result from retirement, joblessness, incapacity, or the instance of wards, the passing of the individual supporting them. Government disability doesn't pay off aside from for the situation where lost pay through loss of business really is acquired. So as to be qualified for mature age and survivors protection (OASI) just as inability and joblessness protection under the Social Security Act, an individual more likely than not been occupied with work secured by the Act. Most work in private venture, most sorts of independent work, dynamic military help after 1956 and work in certain not-for-profit associations and administrative offices are dependent upon inclusion under the Act. Railroad laborers and United States common help workers who are secu red by their own frameworks and some word related gatherings, under specific conditions, are absolved structure the Act. The Social Security Program is upheld by methods for an expense exacted against an employee’s income which must be coordinated purchase the business. Independently employed people are required to pay an expense on their income at a rate, which is higher than that paid by workers yet not exactly the joined rates paid by representatives and their managers.      In request to get mature age protection benefits, an individual more likely than not arrived at retirement age and be completely guaranteed. ... ...evel is slanted to urge handicapped representatives to come back to work. Another potential issue is that organizations must arrangement just with the one approved "insurer." In most private protection advertises, the measure of avoidance administrations is utilized as a gadget to pull in and hold clients. It isn't certain whether the Office of Workers 'Pay Programs has any motivating force to offer these key administrations. Word related wellbeing and security is as significant an administrative issue today as it was in the mid twentieth century, when it was at the vanguard of government intercession in the work advertise. We ought to obviously be utilizing every single accessible gadget for improving the activity of the work showcase. Since representatives will be made up for their word related wounds, it is important to exploit the financing of that remuneration framework so as to make motivating forces for counteraction. The financing courses of action presen tly being used are very solid, however fortifying anticipation motivating forces has never been seen as their basic role. Acknowledgment of this preventive motivator job and thoughtfulness regarding its improvement will serve to improve the word related wellbeing and security of American laborers.

Effects of parental marital instability to children Essay

Parental separation substantially affects kids which can be long haul or present moment. Long haul impacts can run from long haul money related troubles, mental, mental, physical and furthermore social issues. This could be because of absence of both enthusiastic and social help that is gotten from stable families. Separation involves detachment of guardians leaving the family broken, a circumstance that denies the youngsters a sheltered and consistent casual condition for learning. It additionally limits the capacity of guardians to watch their kids against negative impacts from the general condition. Nonetheless, there are a few situations where separation achieves present moment ease to youngsters particularly where viciousness that is coordinated to kids and a parent is included. In spite of the fact that this may decrease transient physical together with mental impacts, long-tem impacts will undoubtedly happen (Amato, 2000). Money related impacts: this emerges because of the separation of the family’s budgetary structure constraining every one of the guardians to depend on their own wages for endurance not at all like already when they could pool their salaries together. Since the accomplishment of kids depends on both budgetary and social help from guardians, kids who are raised in a family with two guardians are probably going to have high accomplishments contrasted with those with one in light of the nearness of the two guardians who could offer correlative assets when required. Every one of the separated from guardians will be compelled to utilize accessible assets in attempting to set up another home to the detriment of the children’s needs of value instruction and better wellbeing administrations. Now and again where fathers start new families, the chance of kids being influenced monetarily rises in light of the fact that the dad could wind up spending less on them (Cherlin, Kiernan and Chase-Lansdale, 1995). Social effect: the social effect of separation on youngsters has been seen as huge. Youngsters whose guardians separate during their early stages have been seen as incredibly influenced contrasted with the individuals who their folks separate sometime in the not too distant future. These kids become inclined to separate in their later lives. This is so on the grounds that, during early stages, kids require the two guardians for compelling improvement of abilities and qualities that are fundamental being developed of stable connections in future. It is obvious in men who develop with single parents who will in general carry on in a freak route with brutal natures who in the long run wind up being engaged with crimes (Amato, 2001). Since the kids are not capable favor one side during divorce, they feel as though they are the reason for the separation. Subsequently, they may wind up getting discouraged and in the long run getting self-destructive. Their character and feeling of certainty is influenced by the customary contentions and battles that their folks may have had. In the long run, after separation if legitimate estimates, for example, advising are not taken, they may turn out to be genuinely destabilized which may prompt medication misuse and self destruction (D’Onofrio et al, 2003). When the non overseer parent moves far away from the other and doesn't impart as often as possible or in totality to the youngsters, they may feel a feeling of free of a parent. Young ladies get influenced by their father’s nonattendance whereby they may turn out to be sincerely pulled back from the two young men and men during development and later on throughout everyday life. Separation cases will in general influence young men more than young ladies. Young men will in general give indications of brutal and criminal practices while young ladies become psychotic burdensome which for the most part relies upon their mother’s conduct. They convey these practices to their connections in future which clarify why most relationships of such youngsters don't last (Furstenberg and Teitler, 1994). As indicated by Cherlin, Chase-Lansdale and McRae (1998), separation may cause long haul mental scatters for kids between the age section 0 and 4. This is so a result of absence of care that is basic for full advancement of the kid. A model is the point at which the dad is given authority of the youngster, the kid botches a chance to bosom take care of and get post-natal consideration which may prompt mental deformities later on throughout everyday life. This influences their capacity to act in sports and school exercises (D’Onofrio et al, 2005). To improve change of the kid to the circumstance, it is suggested that: guardians ought to talk about the approaching separation to guarantee that its done at a level where it won't have an extraordinary impact to the kid, they ought to have the option to respond to any scrutinize that the youngster could be having about the circumstance, the kid ought to be guaranteed that it was not by his/her issue that they isolated, the kid ought to be guaranteed that the two guardians will keep adoring him/her, the child’s needs ought to be the parents’ need, the parent in authority of the kid ought not anticipate his/her enthusiastic should be met by the kid, child rearing should proceed obviously, proceeded with appearance of the kid by the other parent who doesn’t have care of the kid ought to be guaranteed, guardians ought to abstain from being reproachful of the other and abstain from grilling the kid about visits made by the other parent (Caspi et al, 2004). Taking everything into account, the impacts of separation to youngsters are harming to the child’s advancement prompting both physical and mental issue. This influences the child’s capacity to create social abilities which are significant in creating stable connections later on throughout everyday life. It likewise influences both money related and social prosperity of the kids in question. The impacts can be controlled through guaranteeing that the influenced kids are encircled by an empowering domain which will assist them with obtaining the necessary social, passionate and monetary help. This will help decrease the drawn out impacts that outcome from such cases. Different ways that could be considered in attempting to diminish these drawn out impacts incorporate searching for a stage family or presentation of unique mentorship programs in schools. Due with the impacts in question, there is requirement for youngster psychological wellness masters who know about the wide scope of difficulties that separation may have on the kid so they can help decrease if not forestall the impacts. References Amato, P. R. (2000). The results of separation for grown-ups and youngsters: Journal of Marriage and the Family, 62, 1269â€1287. Amato, P. R. (2001). Offspring of separation during the 1990s: An update of the Amato and Keith (1991) meta-examination. Diary of Family Psychology, 15, 355â€370. Caspi, A. , Moffitt, T. E. , Morgan, J. , Rutter, M. , Taylor, A. , Arseneault, L. , et al. (2004). Maternal communicated feeling predicts children’s antisocialbehavior issues: Using monozygotic-twin contrasts to recognize ecological impacts on conduct advancement. Formative Psychology, 40, 149â€161. Cherlin, A. J. , Chase-Lansdale, P. L. , and McRae, C. (1998). Impacts of parental separation on emotional wellness for the duration of the existence course. American Sociological Review, 63, 239â€249. Cherlin, A. J. , Kiernan, K. E. , and Chase-Lansdale, P. L. (1995). Parental separation in adolescence and segment results in youthful adulthood. Demography, 32, 299â€318. D’Onofrio, B. M. , Turkheimer, E. , Eaves, L. J. , Corey, L. A. , Berg, K. ,Solaas, M. H. , and Emery, R. E. (2003). The job of the offspring of twins configuration in clarifying causal relations between parent qualities and kid results. Diary of Child Psychology and Psychiatry, 44, 1130â€1144. D’Onofrio, B. M. , Turkheimer, E. , Emery, R. E. , Slutske, W. S. , Heath, A. C. , Madden, P. A. , and Martin, N. G. (2005). A hereditarily educated examination regarding conjugal shakiness and its relationship with posterity psychopathology. Diary of Abnormal Psychology, 114, 570â€586. Furstenberg, F. F. , Jr. , and Teitler, J. O. (1994). Rethinking the impacts of conjugal disturbance: What happens to offspring of separation in youthful adulthood? Diary of Family Issues, 15, 173â€190.

Evaluation Of Mcb Bank Limited Finance Essay - Free Essay Example

ISFHANI and ADAMJEE families in Kolkata founded Muslim Commercial Bank on July 9, 1947. Muslim Commercial Bank is not an overnight success story rather good track of services are responsible for the leaps and bounds progress. After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the bank transferred its registered office to Karachi, where the head office is presently located. Thus, the bank inherits a 54-year legacy of trust in its customers and the citizens of Pakistan. THE BUSINESS: MCB is in its over 50 years of operation. It has a network of above than 1200 branches all over the Pakistan with business establishments in Bangladesh, Sri Lanka and Bahrain. The branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%) respectively. Muslim Commercial Bank has an edge over other local banks, as it was the First Privatized Bank. The State Bank of Pakistan has restricted the number of branches (minimum of 200 branches and specific Capital must to run further) that can be opened by foreign banks; an advantage of Muslim Commercial Bank capitalizes due to its extensive branch network in all over Pakistan. Fourteen years after privatization, Muslim Commercial Bank is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. MCB BANK has become the only bank to receive the Euro money award for the fourth time in the last five years. MCB won the Best Bank in Pakistan in 2005, 2004, 2003, 2001, and in 2000 the Best Domestic Bank in Pakistan award. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes. Muslim Commercial Bank now focuses on following core businesses named as Wholesale Banking Group Commercial Business Banking Group Islamic Banking Group Consumer Banking Group. Corporate client includes Public Sector Companies, as well as large local and Multi-National concerns. Muslim Commercial Bank is also catering to the growing middle class by providing new asset and liability products. The bank provides 24 hours banking convenience with the largest ATM network in Pakistan. CHANGE OF OWNERSHIP: The performance of Muslim Commercial Bank was badly affected by bureaucrat Government. In January 1974, Bhutto Government following the Bank Act 1974 subsequently in June 1974 nationalized Muslim Commercial Bank, Premier Bank Limited merged with Muslim Commercial Bank. PRIVATIZATION: In late 1990s after a long period of time newly established democratic Government of Pakistan has decided to sell nationalized assets of country for better utilization. In April 1991, Muslim Commercial Bank became Pakistans First Privatized Bank. The Government of Pakistan transferred the management of the Bank to Nishat Group, a group of leading industrialists of the country by selling 26% shares of the bank. In terms of agreement between the Government of Pakistan and the Nishat Group, the group making their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which was being sold in 2004. NEW MILLENIUM Muslim Commercial Bank besides being money financial organization has rendered invaluable services in the economics and social developments of our country. Muslim Commercial Bank today, represents a bank that has grown with time, experience and Pakistan. MCB is a major financial institution in Pakistan in its scope and in its size. It symbolizes a fully-grown tree. Evergreen, strong, and firmly rooted. After that Muslim Commercial Bank name changes to MCB BANK LIMITED. VISION STATEMENT To be the leading financial services provider, partnering with our customers for a more prosperous and secure future. MISSION STATEMENT We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us. CORE VALUES CUSTOMER FOCUS Over the year MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers, ensuring that it not only meets, but exceeds their expectations. QUEST FOR QUALITY MCB strives to achieve excellence by ensuring that every moment of time is spent in adding value, making sure that we do things right, every time. With this quest for quality, MCB has always taken initiatives in bringing banking into a new arena; from cash to the convenience of plastic; from branch banking to internet banking and from face-to-face customer interaction to online accessibility. EMPLOYEES RESPECT AND DIGNITY MCB encourages diversity and treats each of its employees with fairness. It gives constructive feedback for their continuous development and seeks suggestions from all employees for further improvement. MCB ensures that quality performance is acknowledged and rewarded and exercises utmost responsibility in decision-making with regards to its employees. Integrity of its employees is the strength of its performance. TEAM BASED APPROACH MCB believes in achieving its Mission and Vision by working together as a combined group. MCB treats its colleagues as its internal customers and ensure that the requirements of internal customers focus are always met. Equipped with in-depth product knowledge, and recognizing the strengths .in each individual, it strives for optimum results from its co-workers and bringing out peak performances by working towards common goals and objectives in todays dynamic banking environment. GOOD CORPORATE CITIZENSHIP MCB seeks to continuously improve the quality of life in its communities, where people live and work. It realizes that it has a responsibility to the society in which it operates and it seeks ways of playing positive role for the betterment of the community at large for a progressive environment, better living and a brighter future. ORGANIZATIONAL STRUCTURE As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. A team of professional is handling operational Management of the bank. The different operational departments are CBBG (Commercial Branch Banking Division) RMG (Risk Management Group) WBG (Wholesale Banking Group) HRM (Human Resource Management) IT (Information Technology) SPIT (Strategic Planning and Investment Group) IBG (Islamic Banking Group) TSC (Trade Services) Financial and Inter Branch Division Financial control and Audit Division For effective handling of branches, it has been categorized into two segments with different people handling each category. These categories are: wholesale banking group retail banking group WHOLESALE BANKING GROUP The Corporate-Banking Group has been consolidated with the Financial Institutions Group and the Islamic Banking Division under the banner of the Wholesale Banking Group. RETAIL BANKING GROUP the Consumer Banking Group has been consolidated with the Commercial Banking Group under the banner of Retail Banking Group. Together these two groups have registered an impressive performance in terms of credit expansion. TRADE FINANCE Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services. CASH MANAGEMENT Our network of over 1000 branches in Pakistan enables us to collect and disburse payments efficiently with our cash management services. This also enables us to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch on- line transactions etc. INVESTMENT BANKING Our Investment Banking Team has emerged as a leading player in Pakistans Investment Banking arena. The Team handles advisory, corporate finance and capital markets related transactions. Within these areas, the team has developed expertise in: Private Placements Debt/Equity Underwriting Term Finance Certificates Loan Syndication Arrangement of Non- Fund Facilities Mergers and Acquisitions Privatization ORGANIZATIONAL STRUCTURE Human Resource Management Strategic Planning Investment Compliance Control Commercial Banking Wholesale Banking Treasury Forex Operations Special Asset Management Risk Management CRS Security Information Technology Financial Control Islamic Banking Consumer Banking Corporate Affairs Board of Directors President Chairman Audit RAR Group PRODUCTS AND SERVICES ONLINE SERVICES: MCB provides following online services. ATMs Mobile Banking Call Center Bill Payments Virtual Banking ACCOUNTS: Basic Account Current Account Saving Account Foreign Currency Account Smart Dollar Account Saving 365 Gold Special Rupee Term Business Account Saving Extra Account Current Life Account LOANS: Following are the types of loans, provided by MCB. Business Sarmaya Personal Loan Pyara Ghar Car 4 u CARDS: Smart Card Debit Card MCB Visa TYPES OF ACCOUNTS IN MCB DEPOSIT ACCOUNTS KHUSHALI BACHAT ACCOUNT Khushali Bachat Account, a Rupee savings account is one of MCB Banks most popular products. Due to the low initial deposit, the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation. MAHANA KHUSHALI BACHAT MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. PAK RUPEE SAVINGS ACCOUNT MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. PAK RUPEE CURRENT ACCOUNT MCBs Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. PAK RUPEE TERM DEPOSIT MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. SAVING 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. FOREIGN CURRENCY SAVINGS ACCOUNT MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Euro Your foreign currency account is exempted from Zakat and withholding tax FOREIGN CURRENCY CURRENT ACCOUNT MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. MCB FOREIGN CURRENCY TERM DEPOSIT MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. DOLLAR KHUSHALI ACCOUNT The Dollar Khushali Account, a Dollar based account was introduced in 1993 at selected MCB Bank branches. Today, you can open a Dollar Khushali Account at over 200 branches in Pakistan. LOAN PRODUCTS MCB BUSINESS SARMAYA MCB Business Sarmaya is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. So act today and get MCB Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your business, with absolute satisfaction of cash flows. MCB CAR 4U Life is like a chess board. You plan your career options. You analyze your business moves. But when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. It is affordable, with lowest mark up, flexible conditions, easy processing and above all, no hidden costs. MCB PYARA GHAR Some destinations require a long wait, like waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. Having your own home was never so easy. EASY PERSONAL LOAN MCB Easy Personal Loan provides you with the financial advantage to do things youve always wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your children. MCB MASTER CARD Since the beginning of time, people have tried to find more convenient ways to pay, from gold to paper money and cheques. Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space. Plastic or virtual money, credit, debit, and electronic cash products, inevitably will replace cash and cheques as the money of the future. MCB RUPEE TRAVELERS CHEQUES MCB Rupee Travelers Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. The product has been extremely popular and is preferred over cash by customers while traveling and in all walks of life. MCB Rupee Travelers Cheques (The safest way to Carry Cash) CORPORATE BANKING CASH MANAGEMENT SERVICES MCBs network of over 900 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch on- line transactions etc. WORKING CAPITAL LOANS Based on the customers specific needs, the Corporate Bank offers a number of different working capital financing facilities including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. TERM LOANS MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. The loans are structured on the basis of underlying project characteristics and cash flows of the business. TRADE FINANCE SERVICES Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services. ONLINE SERVICES MCB ATM SERVICES With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence, constantly striving to raise the level of performance. MCB MOBILE BANKING At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them, with comfort and peace of mind. MCB CALL CENTER keeping up with banking services can be tedious but not with MCB Bank, where phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branch. MCB SMART CARD MCB now brings you MCB Smartcard -a secure and convenient instrument of payment with unmatched functionalities. It provides 24-hour direct access to your bank account. The convenience and flexibility of MCB Smartcard will help you live a smarter life. It not only helps you manage your expenses, but also eliminates undue interest on your day to day credit card transactions. Your balance is always within your reach and you spend. MCB DEBIT CARD Now MCB brings a secure, convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD. VIRTUAL BANKING MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances when you want to, where you want to. MCBs Virtual Internet Banking facility is simple and secure. And its free of cost. With MCB Virtual Internet Banking you can access any of the banking services, 24 hours a day, 7 days a week and throughout the year. MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere. Detailed Account Summary of all listed accounts. Mini-statements of each of the listed accounts showing recent transaction history for that account(s). Statement-by-Period of each of the listed accounts, based on the period specified. Immediate or Scheduled Transfer of Funds between your own accounts, as well as to third-party accounts   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  setup as beneficiaries, maintaining accounts with MCB. Scheduling of One-Time as well as Recurring Funds Transfers. Payment of utility bills for registered Utility Companies. Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as Recurring bill payments. Option   Ãƒâ€šÃ‚  for Full or Partial payment based on the payment conditions specified by a particular Utility Company. Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the corporate employees,   Ãƒâ€šÃ‚  who maintain accounts with MCB. Bulk Funds Transfer for Corporate Customers. Cheque Book Request for any of your listed accounts. Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified payments and   Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  transfers. Personal Alerts for reminding of pre-specified events and occasions. ISLAMIC BANKING DEPOSIT SCHEMES For customers who are looking for a deposit opportunity where they can pursue their funds and reap halal returns on it, we offer the following products: Al-Makhraj Saving Account Al-Makhraj Ianat Account Al-Makhraj Term Deposit FUND BASED FACILITIES IJARAH PRODUCTS MCBs Islamic Ijarah, analogous to the English term leasing, is based on the Ijarah wa Iqtina concept which means the sale of the asset to the lessee after the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and the customer (lessee) will be given the asset to use for a certain period of time in return for monthly rental payments. MCB will give a separate unilateral undertaking that it will offer to sell the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price that may be equal to the security deposit amount, hence the term Wa Iqtina. TYPES OF IJARAH Car Ijarah Equipment Ijarah CHAPTER: 2 STRUCTURE DESIGN ISSUES HIRARCHY OF THE MANAGEMENT BOARD OF DIRECTORS CHAIRMAN PRESIDENT SENIOR EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT I EXECUTIVE VICE PRESIDENT II SENIOR VICE PRESIDENT VICE PRESIDENT ASSISTANT VICE PRESIDENT OFFICER GRADE I OFFICER GRADE II OFFICER GRADE III OUTSOURCE STAFF CLERICAL STAFF NON CLERICAL STAFF CIRCLE OFFICE: The working of circle office is to control and regulate the functions of branches that are under its control. The function of circle office is to mobilize the deposits and receive reports from branches. Circle office is like a mini Head Office. Agents and correspondents of MCB Bank Limited are in all commercial cities of the world. Circle office is divided in the following division: PROVINCE CIRCLES REGION BRANCHES PUNJAB 9 27 663 SINDH 5 12 329 BALOUCHISTAN 1 2 64 KHAYBERPAKHTUNKHA AJK 2 7 148 DIVISIONS, DEPARTMENTS IN MCB HOUSE CBBG (Commercial Branch Banking Division) RMG (Risk Management Group) WBG (Wholesale Banking Group) HRM (Human Resource Management) IT (Information Technology) SPIT (Strategic Planning and Investment Group) IBG (Islamic Banking Group) TSC (Trade Services) Financial and Inter Branch Division Financial control and Audit Division There are various departments at MCB Bank LTD, each having a different working process. Given below is the overview of the department I had been given exposure to, its processing and what information I got from these during my internship at MCB Bank. RISK MANAGEMENT GROUP (RMG) The main purpose of RMG is to actually manage all kind of organizational risk. Risk management is a structured approach to managing uncertainty through, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. High risk gives high return. The RMG GROUP consists of four divisions that work under it. These are as follows: Credit Review Division (CRD) Credit Risk Management Division (CRMD) Credit Management Division (CMD) Credit Risk Control Division (CRCD) I would be briefly discussing each of them one by one. However my part of internship will be all about the Credit Risk Control Division which I would be discussing in details. CREDIT REVIEW DIVISION (CRD) The purpose of this department is to review the credit proposals accompanied with audited financials of both corporate and commercial clients evaluated by the business units. The major tasks of the CRD include: Financial Statement Analysis including (profit and loss analysis, Balance sheet analysis, Notes of Account, Statement of changes in Equity. Credit risk rating of the client. (Credit worthiness) Drafting of various convenient ( conditions of loans) within approval of finance considering the macroeconomic situations and risk level of client Finally issuing the approval of finance (AOF). CREDIT RISK MANAGEMENT DIVISION (CRMD) The basic purpose of CRMD is to ensure policy making regarding credit risk within the risk management, issuance of circulars on time to time as well on need basis. They are responsible to draft policies, manuals, salvage lists various risk frameworks required for the implementation of Basel II parameters. CREDIT MANAGEMENT DIVISION (CMD) It is basically responsible to report data to State Bank of Pakistan. They are responsible to run various data modules for checking and implementing functions of unique obligor. They are responsible for the integration of various MIS management function systems working simultaneously within the various divisions and groups of the bank. They had also developed credit risk management information system in order to enhance the regulatory requirements of central banks as well as developing the reports required for the analysis by the Senior Management and BODs. CREDIT RISK CONTROL DIVISION (CRCD) A Sub-division of Credit Risk Management Group with a function of mitigating risks associated with credit facilities granted to customers Vision of Credit Risk Control is High Quality Support. Exercise independent control of Post Approval Activities. Maximize automation minimize Human errors. Centralized approach. CRCD Hierarchy of CRCD Takeover Symbols Unit Documentation Unit Customer Service Unit Stock Exchanges Unit Monitoring Unit Vendor Management Unit Custodial Unit The CRC has 5 major internal units which are the following: Take over unit (TU) Customer service unit (CSU) Documentation unit (DU) Monitoring unit (MU) Custodial unit (CU) These are briefly discussed below with main concentration on CRCD as my department of internship: TAKE OVER UNIT (TO) ACTIVITIES: Visit to different branches according to the size of credit portfolio as per MIS reports. Scrutinizing of both limit and collateral files. Collection of original property and security documents Scan all property security documents and hand over soft copy to respective business units. Deliver original documents to Custody Unit. CUSTOMER SERVICE UNIT (CSU) ACTIVITIES: Collection of documents from external agencies. Record keeping of each document in the system. Scanning of all documents. Forward documents to related CRC units. Keep track of all documents within CRCD Final delivery of documents to Custody Unit. Correspondence with branches internal units. Also delivery of soft copies to respective branches. DOCUMENTATION UNIT (DU) ACTIVITIES: Preparation of documents for the branches already taken over Review of property as well as security documents of all branches at their initial take-over. Initial check of Customers Application of Finance then checks BBFS, Search Reports CIB (Credit Information Bureau) before approval or disbursement. Correspondence with Legal Affairs Division for their opinion and comments on all security documents Completion of all mortgage formalities before disbursement with the help of Banks approved lawyers. Review preparation of all documents at subsequent enhancement / renewal. Review of Account Issuance of Disbursement Authorization Certificate in collaboration with Monitoring Unit. MONITORING UNIT (MU) ACTIVITIES: Prepare FAL after getting approval of finance. FAL includes limit amount, pricing, securities being offered and other covenants. Review of Stock Reports Insurances Issuance of DAC in collaboration with DU. Database Management of different Branches. Monitoring of Insurance and Stock reports. Pledge being monitored by Business Units. Block limit immediately if insurance policy is expired or missing or limit is expired. Correspondence with business units via Unit Exception Report (UER) Tickler Report (TR) for removal of discrepancies and renewals of stock reports and insurances. Block limits after 60 days if the discrepancies are not removed or renewals are not obtained. CUSTODIAL UNIT (CU) ACTIVITIES: Placement of documents in folders Record maintenance in Safe Custody Register (SCR) Stamping of blank IB forms Payment record keeping of IB forms Maintain Keep files of insurance policies and stock reports Record and place securities marked with lien Record and place valuation search credit reports Release of securities after fulfilling all formalities Handling vault keys Maintenance of records regarding stocks of computers, printers scanners Folder purchase / Issuance record VALUATION REPORT: Valuation of Fixed Assets offered as security against Banks financing should be undertaken by Banks approved evaluator as notified by CMD/ CRMD from time to time. It would be the added responsibility of BU to assess himself the property so offered for security as well on the basis of prevailing cost / rate in the area conservatively. For the purpose of evaluation by the Field Offices of the Bank, Branch Manager or an officer of Advances Department either from Branch / Region or Circle Office would visit the property personally. A certificate by the Manager would be kept attached with the property documents certifying that the property offered for security was personally inspected by him / Bank officer and professional evaluation report by Banks Architects / Evaluators appears to be correct in his opinion. In case he differs from the valuation done by Banks Architects, he would give his own downgraded assessment in the Certificate. UNIT EXCEPTION REPORT (UER) ACTIVITY DESCRIPTION It is a consolidated report of a branch, containing client wise exception usually called UER. Any exception pertaining to the following areas must be reported in the Unit Exception Report. Expired Credits. Outstanding monitoring (including excesses over drawing power) Stock/Receivable Reports. Stock Inspections. Insurance. Facility Advising Letters. Search Reports Valuation Report Compliance with approval covenants/other terms and conditions, Credit Policies, annual term loan reviews. Collateral Control. Registration of Charge. Documentation (includes Name of person signing the document (including witnesses) clearly identified by writing their names in led pencil below the signature on the documents. Line utilization/disbursement authority. Legal review of documentation. Running Finance rollover. All past due loans/mark-up to be reported on a monthly basis. CRC RESPONSIBILITY While preparing Detailed Review Report (DRR) if any exception is pointed out by CRC reviewing officer that will be reported in UER. Monitoring Unit has been assigned the responsibility of preparing and updating the UER. UER is prepared on monthly basis showing following columns: Customers Name Branch name Group name Relationship Manager/In-charge Advances name Approval reference Date of Approval Facility Expiry Date Review Period Brief particular of Discrepancies/ irregularities, Nature of discrepancies (in UER nature of exception is reported in abbreviation i.e., Discrepancy relating to: Documentation is reported with the word (D) Personal Guarantee (PG) Security Shortfall (S) Credit Requirement (CR) Legal Flaws (L) Insurance related matters are shown as (I) Status of discrepancy (Rectified (R) or New (N) NOTE: In case of WBG; UER will be sent to Unit Head/RM on 25th of each month via E-Mail for arranging rectification/waiver/deferral up till month end, otherwise lines of clients where exception remain outstanding shall stand blocked. FRESH TAKE OVER BRANCHES In case of RBG; 60 days will be given to the branch for arranging rectification / waiver / deferral, otherwise lines of clients where exceptions remain outstanding shall stand blocked. INSURANCE ACTIVITY DESCRIPTION Insurance Policy is a particular kind of indemnity contract which provides indemnification against loss or liability from specified events and circumstances that may occur or be discovered during a specified period. Assets under Banks lien are to be insured by Insurance Companies approved by the bank. The maximum per risk limit for each insurance company is to be adhered. Where the amount of risk to be covered exceeds the per risk limit of an enlisted insurance company, joint insurance or re-insurance may be obtained or FID, P.O.K. approval is obtained. CRC RESPONSIBILITY CRC to ensure that advances do not remain uninsured and a proper insurance coverage is obtained. Insurance must always provide cover to the required stocks/assets declared from time to time for coverage/value not less than outstanding loan or exposure / operative limit whichever is higher plus 10% markup amount. PROCESS FLOW (within Units / Officials who will perform the activity) Activities to be performed An updated list of Insurance Companies on MCBs approved panel to be held for ready reference. Review of Insurance Policy / Cover Note and ensure that Premium Payment Receipt is received. Diarize the validity date of Insurance Policy /Cover Note in order to generate Tickler. CHAPTER: 3 REVIEW OF THE PAST PERFORMANCE THROUGH FINANCIAL ANALYSIS RATIO ANALYSIS Ratio analysis in contrast to financial analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the banks performance. Ratio analysis of a firms financial statements is of interest to shareholders, creditors and the firms own management. Both present and prospective shareholders are interested in the firms current and future level of risk and return, which directly affect share price. The firms creditors are interested primarily in the short term liquidity of company and its ability to make interest and principal payments. A secondary concern of creditors is the firms profitability; they want assurance that the business is healthy. Management is concerned with all aspects of the firms financial situation and its attempts to produce financial ratios that will be considered favorable by both owners and creditors. A ratio analysis of around 12 ratios using the data available in the financial statements of MCB for the last five years has been performed. Net Profit Ratio It is the net profit as a percentage of total revenue. Net profit ratio is the best measure to have an idea about the overall profitability of any organization as it tells us about how the companys profits relate to its sales.  The more of this ratio the better it is. The formula for the net profit ratio is as follows: Net Profit Ratio before tax = Profit before tax / Markup earned Net Profit Ratio after tax = Profit after tax / Markup earned Using the above two formulas the Net profit ratio of MCB for the last five years have been calculated using the information and the data given in the annual reports of MCB. 2007 2008 2009 2010 2011 (Rupees in Millions) Net Profit Ratio Before Tax = 21308 31787 = 67.03% = 21868 40044 = 54.61% = 23155 51616 = 44.86% = 26253 54821 = 47.88% = 31483 68147 =46.19% Net Profit Ratio After Tax = 15266 31778 = 48.03% = 15375 40044 = 38.39% = 15495 51616 = 30.02% = 16873 54821 = 30.77% = 19425 68147 = 28.50% From the above table the values of the net profit ratio of MCB have expresses a declining trend over the last five years. The value of net profit ratio before tax has decreased from 67% in 2007 to 46.2% in the year 2011. This decrease is not due to a decrease performance of the bank in terms of negligence or anything of the sort rather this decrease is a result of the overall declining performance of the banking sector not just in Pakistan but throughout the world. Similarly the net profit ratio after its subjection to tax deduction fell from 48% in 2007 to 28.5% in the last year. Operating Ratio (OR) The operating ratio measures the cost of operations per rupee of sales. It shows the operational efficiency of the business. The higher the operating ratio, the lesser the profit available to the shareholder. The formula for calculating operating ratio is: Operating Ratio = Operating Cost / Mark-up Earned Where Operating cost = Mark-up Expense + Administrative Expenses The operating ratio of MCB for the last five years is calculated as: Years Operating Cost (Rupees in Millions) 2007 = 5426+7866 = 12888 2008 = 7546+11561 = 19107 2009 = 10111+15837 =25948 2010 = 12173+17988 =30162 2011 = 15585+23620 =39205 2007 2008 2009 2010 2011 (Rupee in millions ) Operating Ratio = 12888 31787 = 40.55% = 19107 40044 = 47.71% = 25948 51616 = 50.27% = 30162 54821 = 55.02% = 39205 68147 = 57.53% From the table we can see that over the past five years an increasing trend in MCBs operating ratio has been observed. The value has increased from 40.55% in 2007 to 57.53% in the last year 2011. This means that over the years MCB has been giving its shareholders less than usual profits. Operating Expense Ratio (OER) Operating expense ratio is a way of quantifying the cost of operating a piece of property compared to the income brought in by that property. Thus the operating expense ratio can be used as a tool of measurement of management efficiency, as it tells us if a company can expand operations without a rapid increase in expenses or not. The formula for calculating operating ratio is: Operating Expense Ratio = Administrative Expenses / Mark-up Earned The operating ratio of MCB for the last five years is: 2007 2008 2009 2010 2011 (Rupees in Millions) Operating Expense Ratio = 15266 31787 = 48.03% = 7546 40044 = 18.84% = 10111 51616 = 19.58% = 12174 54821 = 22.20% = 15585 68147 = 22.86% The lower the ratio, the better it is as it means that expenses are low and earnings are high, hence greater profitability for the organization. The value of this ratio for MCB for the last couple of years has remained considerably low. However out of the last five years, 2008 proved to be profitable for MCB as this ratio declined by a great margin showing high profit earnings of the bank. From the table we can see that the revenues of MCB are expanding year-over-year and its OER is going down; this shows that the managements revenues are expanding more quickly than its expenses. This is a very positive outcome from a profitability standpoint. Capital Adequacy Ratio (CAR) It is the relationship between capital and risk weighted assets as defined in the framework developed by the State Bank of Pakistan. It depicts the risk absorption capacity of the institution. The calculation of capital adequacy enables the Bank to assess the long-term soundness. As the bank carry on the business on a wide area network basis, it is critical that it is able to continuously monitor the exposure across entire organization and aggregate the risks so as to take an integrated approach. Formula for calculating CAR is: Capital Adequacy Ratio = (Total Tier One Capital + Total Tier Two Capital) Risk Weighted Assets The CAR for the last five years is calculated as: Years Capital Adequacy Ratio (Rupees in Million) 2007 = 44720233+8749994 299119171 = 17.88% 2008 = 51187423 + 3047689 333197549 = 16.28% 2009 = 59896283 + 4460274 337417070 = 19.07% 2010 = 67701274 + 5155086 330135367 = 22.07% 2011 = 77029927 + 4983794 376442033 = 21.79% MCB maintains the highest Capital Adequacy Ratio among peer banks. According to the SBP requirement for the said year (2011), the banks are required to maintain a minimum capital adequacy ratio (CAR) of 10% of the risk weighted exposure. MCBs CAR as at December 31, 2011 stood at 21.79% of its risk weighted exposure against 10% required by the SBP. This required capital adequacy ratio (10% of the risk-weighted assets) was achieved by the Bank through improvements in the asset quality at the existing volume level, ensuring better recovery management and striking compromise proposal and settlement and composition of asset mix with low risk. Return on Total Assets (ROTA) This ratio is considered an indicator of how effectively a company is using its assets to generate earnings before contractual obligations such as taxes or interests must be paid. Higher values of this ratio indicate the efficiency of the company in terms of using its assets. This ratio measures a companys earnings before interest and taxes against its total net assets. Formula for calculating this ratio is: Return on total Assets = Profit after Tax / Total Assets 2007 2008 2009 2010 2011 (Rupee in Millions ) Return on Total Assets = 15266 410486 = 3.73% = 15375 443616 = 3.46% = 15495 509224 = 3.04% = 16873 567553 = 2.97% = 19425 653233 = 2.97% The above table summarizes the values of this ratio calculated for the last five years for MCB. From the table we can see that a slight decrease in the value of the ratio has been observed as its value fell from 3.73% in 2007 to 2.97% in 2011. However this value still shows that MCB is effectively using its assets to generate earnings and the investments made by the bank are not only wise but profitable as well. Return on Equity (ROE) Return on Equity Ratio is a type of profitability ratio that is used to indicate a companys profitability by measuring how much profit it generates using the money invested by its stockholders. It is also known as Return on Net Worth Ratio. The formula for calculating this ratio is: Return on Equity = Profit after Tax / Shareholders Equity A business that has a high return on equity is more likely to be one that is capable of generating cash internally. For the most part we can say that the higher a companys return on equity compared to its industry, the better. This ratio is important for shareholders who want to know what profits earned will be made available. 2007 2008 2009 2010 2011 (Rupee in Millions ) Return on Equity = 15266 45414 = 33.61% = 15375 52245 = 29.4% = 15495 61076 = 24.37% = 16873 69180 = 24.38% = 19425 78915 = 24.60% From the table it is quite evident that the this ratio for MCB has decreased over the years which is not a good sign for the bank as these values show that the return that the bank is earning on shareholders equity has declined from 33.61% to 24.60% in five years. Return on Share Capital Ratio: This ratio is more meaningful from the point of view of shareholders, as they are more interested in knowing the amount of profits earned by the company and those profits which can be made available to pay dividends to them. This ratio is used to check the profitability of a company. The higher the ratio, the better off the owners as they are more interested in the profitability of a company. The higher the profits earned by a company, the better the performance of the company. Formula for calculating this ratio is: Return on Share Capital = Profit after Tax / share capital This ratio is calculated for the last five years using the information given in the annual reports, the results of this ratio are: 2007 2008 2009 2010 2011 Return on Share Capital = 15266 6283 = 2.43 = 243% = 15375 6282 = 2.44 = 244% = 15495 6911 = 2.24 = 224% = 16873 7602 = 2.22 = 222% = 19425 8362 = 2.32 = 232% From the above table we can see that this ratio has increased by a very great margin over the years. The value has even crossed the normal threshold of 100%. This ratio reveals that the management of the MCB is effectively utilizing its resources and that the investments in the bank are attractive. Propriety Ratio Propriety ratio shows the claims of owners and outsiders on the assets of the firm. Higher the ratio better for all concerned. This ratio for has remained more or less constant with a minor increase over the last five years. However in the year 2011, when the value of the ratio reached 12%, an increase of 1% in a period of five years was complete. 2007 2008 2009 2010 2011 (Rupee in millions ) Propriety Ratio = 45414 410486 = 11.06% = 52245 443616 = 11.77% = 61076 509224 = 11.99% = 69180 567553 = 11.57% = 78915 653233 = 12.08% Net Profit per Branch: This ratio is used to measure the profitability of a branch. Formula for calculating net profit per branch is: Net Profit per Branch = Profit after Tax / Number of Branches 2007 2008 2009 2010 2011 (Rupee in millions ) No. of Branches 1026 1060 1081 1132 1173 Net profit per Branch = 15266 1026 = 14.88% = 15375 1060 = 14.50% = 15495 1081 = 14.34% = 16873 1132 = 14.91% = 19425 1173 = 16.56% From the above table we can see that the net profit per branch of MCB remained more or less constant at 14% from the year 2007 to 2011. However in the year 2011, net profit per branch increased up to 17% approximately, which is the sign of its progress. Debt to Asset Ratio Debt to asset ratio is a measure of a companys risk. It indicates the percentage of firms assets that are supported by debt financing i-e the proportion of a companys assets which are financed through its debt. It is obtained by dividing total liabilities of a company by its total assets. Debt to Asset Ratio = Total Liabilities / Total Assets A less than one debt to asset ratio indicates that most of the companys assets are financed through equity. Similarly, if the ratio is greater than one, then it means that most of the companys assets are financed through debt. 2007 2008 2009 2010 2011 (Rupee in millions ) Debt to Asset Ratio = 355366 410486 = 86.57% = 385180 443616 = 86.83% = 439484 509224 = 86.30% = 488349 567553 = 86.04% = 564431 653233 = 86.41% In case of MCB Bank, this ratio is revealing a very large amount of debt duly accompanied by large expenses of debt servicing. Further, this ratio has remained more and less stable in all the five years at 86%. Debt to Equity Ratio Debt to equity ratio is a measure of a companys financial leverage. It indicates what proportion of equity and debt the company is using to finance its assets. It is calculated by dividing  the total liabilities  by  stockholders equity. Debt to Equity Ratio = Total Liabilities / Stockholders Equity A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This shows that a lot of debt is used to finance increased operations. Thus investing in a company with a higher debt to equity ratio may be riskier, especially in times of rising interest rates, due to the additional interest that has to be paid out for the debt. Debt to Equity Ratio of MCB for the last five years is: 2007 2008 2009 2010 2011 (Rupee in millions ) Debt to Equity Ratio = 355366 45414 = 7.82*100 = 782% = 385180 52245 = 7.37*100 = 737% = 439484 61076 = 7.19*100 = 719% = 488349 69180 = 7.06*100 = 706% = 564431 78915 = 7.15*100 = 715% From the table we see that even though the debt to equity ratio for MCB has undergone a slight decrease over the last five years, yet the ratio remains very, very high and it will take a lot a lot for the value to fall down. The exceptionally high value of this ratio indicates that the major source of funding that MCB uses to finance its ongoing operation is debt. Solvency Ratio Solvency ratio determines the firms ability to pay off its liabilities. Liabilities include both long term debts and interest on these debts.   This ratio is of great interest to long-term creditors and shareholders, because these groups are interested in the long-term health and survival of the company. Formula for calculating solvency ratio is: Solvency Ratio = .Total Assets / (Total Liabilities Share Capital) The calculations for the solvency ratio for MCB for the last five years is given as: Years Solvency Ratio 2007 = 410486___ 355366 6283 = 1.17 = 117% 2008 = 443616__ 358180 6282 = 1.26 = 126% 2009 = 509224___ 439484 6911 = 1.18% = 118% 2010 = 567553___ 488349 7602 = 1.18 = 118% 2011 = 653233___ 564431 8362 = 1.18 = 118% From the table we can see that the solvency ratio for MCB is very high and it has remained almost constant at 118% for the last four to five years with a very few minor fluctuations. The high value of this ratio shows that not only the bank has high chances of the long-term survival, but it also has the ability to pay off its debts. CHAPTER: 4 CORE INTERNSHIP EXPERIENCE INTERNSHIP LEARNING I did my internship in MCB House located at MCB House 15-D Main Gulberg, Jail Road, Lahore. I work in Credit Risk Control Division (CRCD) and rotated to different units of the credit risk control division so that I would have a better understanding of the whole working of the department. MCB offers two types of facilities: Fund based facilities Non- fund based facilities FUND BASED FACILITIES Fund based facilities includes Running Finance, Cash Finance, Demand Finance, Payment against Document, Inland Bill Purchased, Finance against Imported Merchandise, Finance against Foreign Bills, Finance against Packing Credit, Lease Finance facility and Export Finance Pre shipment or post shipment. NON FUND BASED FACILITIES Non fund based facilities includes Letter of Credit (Sight, DA, Inland, and DA Inland), and Bank Guarantee. CREDIT RISK CONTROL DEPARTMENT (CRCD) A Sub-division of Credit Risk Management Group with a function of mitigating risks associated with credit facilities granted to customers. CRC Division Consists of 4 Major Units. Customer Services Unit (CSU) Documentation Unit (DU) Monitoring Unit (MU) Custody Unit (CU) CUSTOMER SERVICE UNIT (CSU) ACTIVITIES: I work in CSU more than 1 week. The main responsibility of the CSU unit is to receive all types of DAK in 2 times in a day, open it and check it then entry in their systems like (CRC Focus). Focus generates an identical number against each entry, they write that number on the document against which the number was generated after that receiving stamp paste and distribute it to the relevant units and receiving of that document in CRC. Unit person open entry by using this number and check entry and click Receive button. If any error in entry then they receive with comments and ad comments in box. Then CSU has another function of dispatching the Mails. Mails which are sent by CRCD to the branches are dispatched by the CSU. Dispatching time starts 3pm after lunch. They receive the document from different units, again entry those documents in the CRC focus software, and match number of documents with cover note and receive that document. Then dispatch it to the relevant branch. Third function of the CSU is Scanning. Documents which are first distributed by the CSU are again come back to the CSU for scanning. More than five employees are scanning documents only. Scanning team scans the documents place them in the relevant folder and after that deliver the original documents to the CU (Custody Unit) for the placement of documents. RETURN DOCUMENTS: If any Document receives without the Cover note, then simply return it to the branch. No entries of these documents in Focus. CUSTOMER SERVICE UNITFLOW OF DOCUMENTS IN CSU: BRANCHES MONITORING UNIT AND DOCUMENTATION UNIT CUSTODY UNIT CUSTOMER SERVICE UNIT SCANNING MONITORING UNIT (MU) STOCK INSPECTION AND REPORT: Stock Inspection and Report is a part of Monitoring Unit (MU). The responsibility of this group is to check the Stock inspections and Stock Reports. Main Difference between Stock Reports and Stock Inspection: In every last date of month, Stock Report conducts from client side on standard format of MCB. And, Stock Inspection takes form Branch Manager, Regional Manager or GM after every three months. Purpose: State Bank of Pakistan Requirement. Mentioned in Approval of Finance. In case, if customer defaults then this is the evidence to case in court. Stock Reports: Stock report is submitted by the customer last date of every month. Stock report is actually the latest situation of the customers stock which is hypothecated with the bank. In fact, it is an undertaking by the customer about the latest situation of his stock that this much amount of stock is available. Steps to make an effective Stock Reports: First of all stock report should be on the approved format of MCB Stock report should be as on the last day of month. Name of Bank is right, MCB BANK LIMITED instead of Muslim Commercial Bank. Borrowers name must be mentioned and it matches with Application of Finance. Borrowers must be signed and stamps on it. Bank verifies it and signatures with IBs number stamp on it. If cutting or overwriting then also verify it. Detail of items mentioned and address where stock is lying must be match with AOF or Insurance Policy address. Branch mentions fill every column and also mention buyer purchase price market price on it. And calculate the drawing power by selecting the lower value of these two. Also fill all Insurance column and mention drawing power on it. Then Bank verifies it with stamp (DP Checked). If outstanding more than drawing power, than drawing power shortfall. Stock Inspection: Stock inspection is done by Banks representative according to schedule by Branch Manager, by Regional Manager and other higher authority. When we receive stock inspection we check the Name of the customer and the details of the facilities from FAL and we also match the address of the stock from insurance. After checking all that if outstanding is not more than DP we remove the discrepancies if any in the UER. If the customer is in need of a quick transaction and his stock inspection report is pending we can give him an option to fax the inspection report. Address of the report faxed should match with the insurance and after that we remove the discrepancy from UER and give the customer a time of a day or twice to send us the original stock inspection report. PLEDGED SITE INSPECTION BEFORE DISBURSEMENT: Site Inspection must be undertaken before disbursement. Stock Inspection report should be filed in relevant section of credit file. Any discrepancy like mandatory risks discussed before. It will be checked and rectify the discrepancies and reported to BM, RM or GM. CRCD advise to Branch Manager or Regional Manager, at least one month in advance of the inspection report. Because if any discrepancy in it, then rectify it within the time period. They also monitor on a regular basis the followings: Stock Break-up. Quality of collateral. Evidence of Ownership. Quality of ware housing. Adequacy of fire protection devices and from theft. Condition at the premises. FACILITY ADVISORY LETTER (FAL): FAL comes under Monitoring Unit. Facility advising letter contains the details of the loan along with the terms and conditions attached to it. Approval of Finance is a document which is issued by the approving authority (RMG) this document contains the details of Facility approved, terms and condition attached to it which should be fulfilled by the Customer. After receiving the Approval of Finance, Monitoring Unit starts their work to draft FAL. First of all an entry is made in the excel sheet and an FAL number is issued which is written on the FAL at the bottom of page. Different types of Formats already defined by MCB Bank Limited. FAL is drafted according to Revised Terms and Conditions. We check the different facilities and write it on the FAL. If approval has a special clause which over rules any clause written in the Revised Terms and Conditions of FAL then that clause must be shown in the Special Clause. Edit these formats like (its status, nature of business, purpose, Margin, type of loan, Securities, additional special conditions, Markup rate). After drafting the FAL a rough copy is generated and verified with the AOF. And Team Leader check it, If drafting has no mistake then three copies of FAL are printed for following persons. Original (placed in CU) Branch Copy (remains with the branch) Customer Copy (evidence with the customer) After that stamp on it, all these copies are sent to the branch for execution and after the execution of FAL goes to Review for further process. INSURANCE: In insurance, documents are checked certain rules regulation set by insurance section. Insurance is the contract of Indemnity in which insurance company undertakes to indemnify the insurer against a specific loss. Assets which are under banks lien should be insured by the approved insurance company. While checking the insurance company following few things must be observed. It should be on the approved panel of MCB Bank Limited. Maximum Risk Limit for Insurance Company. If risk limit is more than the risk limit of the insurance company assigned, then Joint Insurance, Co-Insurance or Re-insurance is obtained. This is the responsibility of the CRC to make sure that the advances do not remain uninsured and a proper insurance coverage should be obtained. Insurance must provide cover to the declared stock and assets under banks lien. The value of the insurance should cover the total exposure of the loan plus 10 % markup amount. Activities which are performed by MU regarding insurance Updated list of insurance companies which are on MCBs approved panned is held by the MU for the reference and to check whether the insurance company whos insurance is provided against the stocks or assets under banks lien lies in the approved panel of MCB or not. Insurance Policy is reviewed and it should comply with the requirements of the bank. Moreover cover note and Premium Payment Receipt should also be attached and Bank verifies this receipt to the insurance company. Validity date of the insurance should be recorded and a tickler should be generated so that we are notified before the expiry of the insurance. Moreover, if new insurance doesnt come after the expiry of the old insurance itll be turned into discrepancy and MU will block the line of that customer. In case of discrepant document MU can take action and can block or reduce the clients line. Following three insurances are the most important which are not waived. In Primary Securities, Mandatory Risks Are: Fire Insurance Burglary Insurance Riots and Strikes Insurance (RD) Other insurance types: Malicious Damage (MD) Atmosphere Disturbance (AD) Air Craft Damage (ARD) Earthquake and Fire shocks (EQFS) Explosion (Terrorism) Electrical Clauses A B. LINE MONITORING: Line monitoring comes under Monitoring Unit. Line monitor

Pacific Coast Migration Model Into the Americas

The Pacific Coast Migration Model is a theory concerning the original colonization of the Americas that proposes that people entering the continents followed the Pacific coastline, hunter-gatherer-fishers traveling in boats or along the shoreline and subsisting primarily on marine resources. The PCM model was first considered in detail by Knut Fladmark, in a 1979 article in American Antiquity which was simply amazing for its time. Fladmark argued against the Ice Free Corridor hypothesis, which proposes people entered North America through a narrow opening between two glacial ice sheets. The Ice Free Corridor was likely to have been blocked, argued Fladmark, and if the corridor was open at all, it would have been unpleasant to live and travel in. Fladmark proposed instead that a more suitable environment for human occupation and travel would have been possible along the Pacific coast, beginning along the edge of Beringia, and reaching the unglaciated shores of Oregon and California. Support for the Pacific Coast Migration Model The main hitch to the PCM model is the paucity of archaeological evidence for a Pacific coastal migration. The reason for that is fairly straightforward--given a rise in sea levels of 50 meters (~165 feet) or more since the Last Glacial Maximum, the coastlines along which the original colonists might have arrived, and the sites they may have left there, are out of present archaeological reach. However, a growing body of genetic and archaeological evidence does lend support to this theory. For example, evidence for seafaring in the Pacific Rim region begins in greater Australia, which was colonized by people in watercraft at least as long ago as 50,000 years. Maritime foodways were practiced by the Incipient Jomon of the Ryukyu Islands and southern Japan by 15,500 cal BP. Projectile points used by the Jomon were distinctively tanged, some with barbed shoulders: similar points are found throughout the New World. Finally, it is believed that the bottle gourd was domesticated in Asia and introduced into the New World, perhaps by colonizing sailors. Read more about the JomonRead about bottle gourd domestication Sanak Island: Redating Deglaciation of the Aleutians The earliest archaeological sites in the Americas—such as Monte Verde and Quebrada Jaguay—are located in South America and date to ~15,000 years ago. If the Pacific coast corridor was only truly navigable beginning around 15,000 years ago, that suggests that a full-out sprint along the Pacific coast of the Americas had to have occurred for those sites to be occupied so early. But new evidence from the Aleutian Islands suggests the sea coast corridor was opened at least 2,000 years longer ago than previously believed. In an August 2012 article in Quaternary Science Reviews, Misarti and colleagues report on pollen and climatic data that provide circumstantial evidence supporting the PCM, from Sanak Island in the Aleutian Archipelago. Sanak Island is a small (23x9 kilometers, or ~15x6 miles) dot about the midpoint of the Aleutians extending off Alaska, capped by a single volcano called Sanak Peak. The Aleutians would have been part--the highest part--of the landmass scholars call Beringia, when sea levels were 50 meters lower than they are today. Archaeological investigations on Sanak have documented more than 120 sites dated within the last 7,000 years—but nothing earlier. Misarti and colleagues placed 22 sediment core samples into the deposits of three lakes on Sanak Island. Using the presence of pollen from Artemisia (sagebrush), Ericaceae (heather), Cyperaceae (sedge), Salix (willow), and Poaceae (grasses), and directly tied to radiocarbon-dated deep lake sediments as an indicator of climate, the researchers found that the island, and surely its now-submerged coastal plains, was free of ice nearly 17,000 cal BP. Two thousand years seems at least a more reasonable period in which to expect people to move from Beringia southward to the Chilean coast, some 2,000 years (and 10,000 miles) later. That is circumstantial evidence, not unlike a trout in the milk. Sources Balter M. 2012. The Peopling of the Aleutians. Science 335:158-161. Erlandson JM, and Braje TJ. 2011. From Asia to the Americas by boat? Paleogeography, paleoecology, and stemmed points of the northwest Pacific. Quaternary International 239(1-2):28-37. Fladmark, K. R. 1979 Routes: Alternate Migration Corridors for Early Man in North America. American Antiquity 44(1):55-69. Gruhn, Ruth 1994 The Pacific Coast route of initial entry: An overview. In Method and Theory for Investigating the Peopling of the Americas. Robson Bonnichsen and D. G. Steele, eds. Pp. 249-256. Corvallis, Oregon: Oregon State University. Misarti N, Finney BP, Jordan JW, Maschner HDG, Addison JA, Shapley MD, Krumhardt A, and Beget JE. 2012. Early retreat of the Alaska Peninsula Glacier Complex and the implications for coastal migrations of First Americans. Quaternary Science Reviews 48(0):1-6.

Essay on sensory loss - 1084 Words

Sensory loss 1.1 There are many different facts that can have an impact on people with sensory loss. Communication and awarness can play big roles in the impact. They may find it difficult to feed themselves,dressing and mobility. Hobbies and interests can have a negative impact on their lives. They may also feel scared and alone due to this. There can be positive factors that can help out the person such as,increased help,aids for support and a good support team could give them a brighter outlook on life. Organisations may help the deaf and blind with many different aspects of their life to support or to helping them get the right kind of support. 1.2 Some steps that can be taken to overcome†¦show more content†¦Once this is achevied you can set a goal and priorotise what you want to acheive first. Positive thinking and motivation is key to overcome theses attitudes and beliefs. Make sure that any negative attitudes and beliefs are overcome and also changing your attitudes and behaviours. Effective communication will have a positive impact on the lives of people with sensory loss by affecting their physical and mental well being,making them cope with a sensory loss and maintaining social contact all contribute to an improved quality of life. 2.1 When communicating with individuals with sight loss there are a number of factors you need to consider. You need to make it clear that you are speaking to them and not someone else. They can not see you to read your body language so you need to be clear about your meanings and directions. Also a noisy environment can make it difficult for them to concerntrate on your voice. When communicating with individuals with hearing loss there are also a number of factors you need to consider. Be respectful when trying to get their attention,for example,use a light touch on the arm. If they lip read they need to see your face,so speak clearly at a normal pace and tone.You may need to repeat things so being patient is key. WhenShow MoreRelatedSensory Loss Essays1961 Words   |  8 Pagesensory loss Acquired Sensory Loss This is when somebody is born without any sensory loss, but then has an accident or illness which causes a sensory loss. Illness Diabetes: The most serious complication of diabetes for the eye is the development of diabetic retinopathy. Diabetes affects the tiny blood vessels of the eye and if they become blocked or leak then the retina and possibly your vision will be affected. Measles: Measles blindness is the single leading cause of blindnessRead MoreUnderstand Sensory Loss (Ss Mu 3.1)2375 Words   |  10 Pages1. Understand the factors that impact on an individual with sensory loss 1.1 Analyse how a range of factors can impact on individuals with sensory loss Impact on communication Sensory losses can affect on normal living in a variety of ways. These can be hidden disability which can ultimately result in social isolation and frustration due to not being able to communicate efficiently. In case of hearing loss, day-to-day activities such as hearing a doorbell, using the telephone, watchingRead MoreUnderstanding Sensory Loss Essay805 Words   |  4 PagesUnit 4222-393 Understanding Sensory Loss O 1-1 A range of factors can impact on individuals with sensory loss. We gather so much information from our sight and hearing. Talking, listening reading are all things we do in everyday life, we rely on our senses to understand and process what is going on around us and to carry out our everyday living skills, so to lose any of these will have a massive impact. Decreased vision and/or hearing can lead to a breakdown in communication,Read MoreLevel 5 Sensory Loss1911 Words   |  8 PagesSensory Loss Level 5 Diploma 4/1/13 Jackie Wade Identify methods for raising awareness of sensory loss: * A working description of deafblindness that has been accepted over many years, is that persons are regarded as deafblind if their combined sight and hearing impairment cause difficulties with communication. It can be found in all age groups including children but the greatest is in older people. * Having a sight and hearing loss sometimes called dual sensory impairedRead MoreUnderstand Sensory Loss (Ss Mu 3.1)2363 Words   |  10 Pages1. Understand the factors that impact on an individual with sensory loss 1.1 Analyse how a range of factors can impact on individuals with sensory loss Impact on communication Sensory losses can affect on normal living in a variety of ways. These can be hidden disability which can ultimately result in social isolation and frustration due to not being able to communicate efficiently. In case of hearing loss, day-to-day activities such as hearing a doorbell, using the telephone, watchingRead MoreEssay about Intoductory Awareness of Sensory Loss1096 Words   |  5 PagesIntroductory awareness of sensory loss (SS MU2.1) Outcome 1 When people have any sensory loss, then their mobility and communication are greatly affected. This can lead to increased loneliness and even isolation in some cases. People with any kind of sensory loss can have difficulties in finding employment. Even though the Equality Act and the Disability Discrimination Act mean that employers cannot discriminate, it is hard to convince an employer that a sensory loss does not necessarily meanRead MorePromote effective communication with individuals with sensory loss975 Words   |  4 PagesUnit 4222-395 Promote effective communication with individuals with sensory loss 1.1 The communication that takes place between two people (the sender and the receiver) is known as two way communication. The main feature of two way communication is the flow of information from both ways. This process is called a communication cycle as the process goes around in circles. †¢ Ideas occur – individual thinks of something they want to communicate. Communication always has a purpose. It mightRead MoreEssay about Unit 4222 258 Sensory Loss754 Words   |  4 Pagesï » ¿ Unit 4222-258 Introductory awareness of sensory loss (SSMU 2.1) Outcome 1 1. There are many different facts that can have a impact on people with sensory loss. Communication and awareness play big roles in the impact. They may find it difficult to feed themselves, dressing and mobility. Hobbies and interests can have negative impact on their lives. They may also feel scared and alone due to this. There can be positive factors that can help out the person such as increased help, aids for supportRead MoreEssay on 4222-258 INTRODUCTORY AWARENESS OF SENSORY LOSS893 Words   |  4 Pagesï » ¿Outcome1. 1. describes how a range of factors have a negative and positive impact on individuals with sensory loss. There are a number of factors that can impact individuals with sensory loss. People with sensory loss can miss out on important information that people without sensory loss take in day to day without even realising. Communication is an area in which people with sensory loss have many issues. they may also find it difficult to feed themselves, dressing, mobility, hobbies and interestsRead MoreMarigolds By Eugenia W. Collier1206 Words   |  5 Pages In â€Å"Marigolds,† Eugenia W. Collier describes a young girl that came to understand the dire financial situation her family was in to illustrate the loss of innocence. Lizabeth thinks that she was living a perfect life, but she soon finds that it was just a fantasy that she herself concocted. Collier uses ordinary symbols, a simple title, and a descriptive style to get across her message that everyone needs to have hope despite how powerless they are. In the plot of â€Å"Marigolds,† Collier describes

Competency Based Training free essay sample

COMPETENCY BASED TRAINING SIP Project report submitted in partial fulfillment of the requirements for the PGDM Program By Abhishek Kumar Pandey Supervisors: 1. Mr. Aditya Sareen (Manager, Delhi International Airport Ltd. ) 2. Prof. N. Y. Phadnis (Professor, IMT Nagpur) INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR 2009-11 Competency Based Training SIP at DIAL | GMR ACKNOWLEDGEMENT I take this opportunity to thank Mr. ASK Reddy, CHRO, Delhi International Airport Private Ltd for providing me with an opportunity of doing a project with a reputed company like GMR. I would like to express sincere thanks to Mr. Sunil Bhardwaj, GM (Talent Development Group). His insights on the technical and behavioral aspects in a corporate world have instilled in me a sense of maturity to tackle a corporate presence. I would also like to thanks Mr. Aditya Sareen, Manager (Talent Development Group) for giving me this opportunity of working on such a significant topic in HR. Also, my sincere gratitude to Ms. Deepti Kurian, Associate Manager (Talent Development Group), for her patience and significant inputs. Last but not the least, my heartfelt thanks to everyone at TDG Department, for their significant inputs to the project. I am highly obliged to Prof. N. Y. Phadnis of Institute of Management Technology, Nagpur, for his support throughout the project period. I am also gratified by the valuable inputs I received from other faculty members of my institute, which helped alleviate my project knowledge. Abhishek Kr. Pandey 2009038 PGDM 2009-11 IMT Nagpur Institute of Management Technology, Nagpur Page 2 Competency Based Training SIP at DIAL | GMR Institute of Management Technology, Nagpur Page 3 Competency Based Training SIP at DIAL | GMR TABLE OF CONTENTS 1. Acknowledgement 2. Certificate 3. Table of Content 4. Executive Summary 5. Objectives of the study 6. Introduction a. GMR b. About DIAL 7. HR at DIAL its Hierarchy 8. Concepts / Models used in the Study a. What is Competency b. What is not a Competency c. What is competency mapping d. When Do we map Competency e. Concept of Competency Dictionary f. Implications i. For Organization ii. For Managers iii. For Employees g. Advantages and Disadvantages 9. Competency Based Training a. Introduction b. Evolution of CBT c. Significance d. Advantages e. Disadvantages 10. Implementation at DIAL 11. Effects on the policies and strategies of the organization 12. Concluding Recommendations 13. Bibliography References Institute of Management Technology, Nagpur Page 4 Competency Based Training SIP at DIAL | GMR Executive Summary â€Å"The Familiarization and implementation of the competency based training program at Delhi International Airport Ltd. † The Delhi International Airport Ltd. is on the verge of completion of Terminal-3 Project. It has already been acknowledged as the â€Å"Most Improved Airport† in its category. For maintaining the high standards set by the organization at the very onset of the Project, Human Resource department will have to play an important role in the organization. The HR Department will have to come up with innovative as well as viable options in order to improvise or at least maintain the productivity level of the employees. It is this need, which demands the implementation of Competency Based Training at Delhi International Airport Limited. Recruitment, Succession Planning, Training and Development would be standardized according to the Competency Based model in order to maximize the effectiveness of this implementation. It has also been noticed that Competency Based Training Methodology is a new term for the employees to deal with and hence would need a Familiarization before driving it into action. The Organization has a policy of ensuring five man days of training and development for each employee in the organization. Thus, implementation of the competency based training could play a significant role in producing a highly efficient, Productive and Trained Manpower. This in turn would enhance the possibility of achieving the sketched Business goals in the speculated time. Also, the organization has a large array of levels, under which employees are placed. Mapped competency for the employee, which is a part of competency based training, would enable HR to place the prospective employee in the right level creating a match between the Position and the Person. All this would be facilitated by the competency based training. As the competency based training has its own complexities which start to unveil once you start with the implementation. So as they say â€Å"It is better to prevent and prepare than to repent and repair. † For avoiding the hiccups during the actual implementation phase, it is better if a simulation is done in advance and then the planning for the actual roll out of the implementation is followed. This is the basic objective of this project work – to provide DIAL with a ready reckoner for the implementation of the Competency based training, giving a detailing to each and every minute of the issues. Institute of Management Technology, Nagpur Page 5 Competency Based Training SIP at DIAL | GMR GMR Group The GMR Group is one of the leading and fastest growing private sector organizations of India with special interests in Airports, Urban Infrastructure and Energy. Founded in 1978 by Grandhi Malikkarjun Rao, the Group is well diversified and professionally managed. Vision To build entrepreneurial organizations those make a difference to society through creation of value. Values Beliefs: The group has a culture of its Values and Beliefs which are as follows: Humility- Value intellectual modesty and dislike false pride and arrogance Entrepreneurship Seek opportunities they are everywhere Teamwork and Relationships Going beyond the individual encouraging boundaryless behaviour Deliver the promise Value a deep sense of responsibility and self discipline, to meet and surpass on commitments made Learning Nurturing active curiosity – to question, share, and improve Social Responsibility Anticipating and meeting relevant and emerging needs of society Respect for Individuals Treat others with dignity, sensitivity and honour GMR Group is one of the fastest growing infrastructure organizations in the country with interests in Airports, Energy, Highways and Urban Infrastructure (including SEZ). Employing the Public Private Partnership model, the Group has successfully implemented several infrastructure projects in India. Institute of Management Tec hnology, Nagpur Page 6 Competency Based Training SIP at DIAL | GMR GMR Infrastructure Limited is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects in the Group? s Energy, Highways and Airport business. It undertakes the development of the infrastructure projects through its various subsidiaries. In addition, other focus area of the Group is the Agri-business with Sugar as its main product-line. GMR Industries Limited is the holding company for the Groups Agri-Business. The Group? s commitment to inclusive growth is achieved through its Corporate Social Responsibility arm – the GMR Varalakshmi Foundation (GMRVF). GMRVF works with the under-privileged sections of the community in all the locations where the Group has business interests. The various arenas in which the Group is functional are as follows: Agri Business: GMR Industries Limited (GIDL) is the Agri business division of the GMR Group, one of the fastest and most progressive business houses in India. GIDL produces superior grade sugar and associated products. And are equally committed to the socioeconomic development of the farmers through their farmer-partnership initiatives by providing assistance in farming practices and by undertaking various economic initiatives for the benefit of the local communities. The sugar manufacturing facility is certified ISO 9000:2001 and the distillery is certified zero-effluent. The various projects undertaken by GMR Group are: ? ? ? Sankili Sugar Plant Ramdurg Sugar Complex Haliyal Sugar Complex Fig. Sankili Sugar Plant Institute of Management Technology, Nagpur Fig. GMR Energy Ltd. Page 7 Competen cy Based Training SIP at DIAL | GMR GMR Infrastructure, as part of its business strategy to strongly position the group in the Global energy market, has acquired a 50% stake in Intergen, a leading global power generation company, headquartered in neatherlands. The 50% stake was purchased from AIG Highstar. The transaction was completed in October 2008. Intergen? s unique operating strengths give immense boost to GMR? s value creation ability. The projects are designed to utilize long term PPA, fuel agreements other structured contracts for risk mitigation and Sustainable returns. URBAN INFRASTRUCTURE: GMR Group entered into an MOU with Tamil Nadu Industrial Development Corporation (TIDCO) for the development of a Multi Product Special Economic Zone (SEZ) in Krishnagiri District, Tamil Nadu. The SEZ will be developed through a Special Purpose Vehicle (SPV) to be set up through a Joint Venture partnership with TIDCO. This multi- product SEZ will be spread around 3300 acres in the Krishnagiri District of Tamil Nadu. The selection of the codeveloper by TIDCO was carried out through a two-stage competitive bidding process. The nonagricultural land is expected to be procured by the SPV over a period of one year. The SEZ is advantageously located in close proximity to Bangalore. The entire development process to be completed by 2014. ? This multi product SEZ will focus on a variety of industries ranging from Bio Technology, IT and ITES besides the traditional electronics and engineering areas. ? It will be of global standards comprising, green corridors with a special emphasis on high quality and social infrastructure. Ecological efficiency and sustainability shall be the key elements. ? Additional benefits of this SEZ include excellent connectivity through state highway NH 7 and a good railway network. ? Over three lakh people would be benefiting from this SEZ, both through direct and indirect employment. ? An added advantage of this project would be the related development through its multiplier effect, on the physical and social infrastructure in the region. Going forward: A „Community based Participative Approach? shall be adopted, for land procurement where adequate attention will be given to compensation, relief and complete rehabilitation measures to all land owners. Institute of Management Technology, Nagpur Page 8 Competency Based Training SIP at DIAL | GMR GMR Sports The GMR Group successfully won the bid as a Franchisee for Indian Premier League (IPL) sponsored 20-20 Delhi Team. The reason for the Group to venture into this highly people-intensive category to support good cricket and more so, the 20-20 form of it, is three-fold; 1. The Group believes that sports, particularly Cricket, is a very important connect with the community at large 2. Through this, the Group will also be able to achieve its social objectives of promoting and nurturing talent, especially in the areas around the Capital at the grass-roots level 3. While acting as a custodian of the team which truly belongs to the community at large, the Group would provide the role of being a mentor to promote this game and also help obtain for itself the goodwill of the community in the Capital. This, it believes, would help it build its brand across various sections of the society in the long run Foundation: GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. Its mandate is to develop social infrastructure and enhance the quality of life of communities around the locations where the Group has a presence. The Foundation is a Section 25 (not-for-profit) company. It has its own professional staff drawn from top academic and social work institutions. It is governed by a Board chaired by Group Chairman, GMR Group. Institute of Management Technology, Nagpur Page 9 Competency Based Training SIP at DIAL | GMR The foundation works in following areas: Education Wing ? ? ? ? ? ? GMR Institute of Technology (GMRIT) Sri GCSR College GMR Varalakshmi DAV School Seethamahalakshmi DAV Public School (SMLDAV) St. Anns Varalakshmi Vidyashram GMR Chinmaya Vidyalaya Foundation also facilitates scholarships and educational loans to ensure that deserving students, irrespective of their financial backgrounds, have access to these institutions. Other Focus Areas of the foundation are: ? Health, Hygiene and Sanitation ? Empowerment Livelihoods These Institutes train unemployed youth in a variety of skills like plumbing, tailoring, twowheeler repairs, and photography. Great emphasis is laid on developing the entrepreneurial spirit by strengthening confidence and motivation levels, improving Communication skills etc. Institute of Management Technology, Nagpur Page 10 Competency Based Training SIP at DIAL | GMR Airports The various projects undertaken by GMR G roup in Airport Operations are: ? ? ? GMR Hyderabad International Airport Pvt Ltd Istanbul Sabiha Gokcen Airport Ltd. Delhi International Airport (P) Ltd. GMR Hyderabad International Airport Pvt Ltd GMR Hyderabad International Airport Limited (GHIAL) is a joint venture company promoted by the GMR Group (63%) in partnership with government of India (13%), government of Andhra Pradesh (13%) and Malaysia Airports Holdings Berhad (11%). The Company was incorporated to design, finance, build, operate and maintain a world class Greenfield airport at Shamshabad, Hyderabad. The project is based on the Public Private Partnership (PPP) model and is structured on a Build, Own, Operate and Transfer (BOOT) basis. The Rajiv Gandhi International Airport (RGIA) was inaugurated on March 14, 2008 by Smt. Sonia Gandhi, Chairperson of the UPA and commenced commercial operations with effect from 00:01 hrs on March 23, 2008. The airport which was commissioned in a record time of 31 months, has an initial capacity of 12 million passengers per annum (MPPA) and 100,000 tons of cargo handling capacity per annum. The Project has the flexibility to increase capacity to accommodate over 40 MPPA and shall be developed in a phased manner. Institute of Management Technology, Nagpur Page 11 Competency Based Training SIP at DIAL | GMR The airport provides world-class facilities and infrastructure, in accordance with ICAO standards and practices to handle large aircraft and international traffic. Its integrated domestic and international terminals are equipped with 12 contact boarding bridges, 30 remote stands, Common User Terminal Equipment (CUTE), self check-in kiosks (Common User Self Service- CUSS) and 46 immigration counters. It also incorporates modern IT systems including Flight Information Display Screens, Baggage Handling System (BHS), and Airport Operational Database (AODB) technology for the first time in India. RGIA is the first Indian airport to have the Airport Operations Control Centre which acts as the nerve centre for all coordination within the airport. RGIA has been rated the best in the world by Airports Council International (ACI) in the 515 million passengers category for its Airport Service Quality for 2009. It has also been adjudged as the 5th best airport across all categories, both in the world as well as the Asia Pacific-Region. RGIA was the first airport in the world to be awarded the Leadership Energy and Environment Design (LEED) silver rating for its eco-friendly design. It has also won the „Outstanding Concrete Structure of Andhra Pradesh? award from the Indian Concrete Institute. GMR Varalakshmi Foundation, the CSR wing of the GMR Group has won the ORBIS award, and the TERI Award for enhancing he quality of life in the communities living around the RGIA. It was also awarded the „Airport Environmental Performance of the Year 2009? by the Centre for Asia Pacific Aviation (CAPA). Istanbul Sabiha Gokcen Airport Ltd. GMR made its maiden international foray, by winning the bid to develop Istanbul Sabiha Gokcen I nternational Airport (ISGIA) at Istanbul, Turkey, along with its consortium partners Limak Holding, Turkey (LIMAK) and Malaysia Airports Holdings Berhad (MAHB). The terminal is twice the size of the new Hyderabad Airport. It is 3. 5 times the size of the new Bangalore Airport. Completed in a near world record time of 18 months without compromising any safety or quality standards. The airport is targeted to handle 35-40 million ppa by the end of the concession term. ISGIA is the fastest growing airport in Turkey and in Europe (among airports with +3mn pax in Europe). It is slated to become the 3rd busiest airport in Turkey by passenger traffic by 2010, after Istanbul-Ataturk and Antalya airports. Institute of Management Technology, Nagpur Page 12 Competency Based Training SIP at DIAL | GMR DELHI INTERNATIONAL AIRPORT PVT. LTD. DIAL is a joint venture consortium of GMR Group (54%), Airports Authority of India (26%), Fraport Eraman Malaysia (10% each). GMR is the lead member of the consortium; Fraport AG is the airport operator, Eraman Malaysia the retail advisors. In January 2006, the consortium was awarded the concession to operate, manage and develop the IGI Airport following an international competitive bidding process. DIAL entered in to Operations, Management and Development Agreement (OMDA) on April 4, 2006 with the AAI. The initial term of the concession is 30 years extendable by a further 30 years. Besides upgrading the existing terminals, DIAL has already commissioned a new runway 11-29 at IGI Airport on September 25, 2008. It has also inaugurated the new domestic departure terminal 1D (T1D) on 26th February, 2009. T1D will increase the capacity of domestic departures to 10 million passengers per annum. fig. The Proposed Model of DIAL The new terminal has a modern 4 level in-line baggage handling system to eliminate baggage X-ray prior to check in, spacious security hold area with extensive FB and retail facilities, special contact zone for passengers with special needs and baggage handling area on a separate level allowing greater space for passenger amenities. DIAL has also constructed an integrated passenger terminal (Terminal 3). The first phase of the airport is designed to Institute of Management Technology, Nagpur Page 13 Competency Based Training SIP at DIAL | GMR handle 60 million passengers per annum (mppa). This phase will be completed by mid 2010. This development would form just the first phase of the airport expansion. In subsequent stages, the airport will be further developed with the increase in passenger demand and more terminals and runways would be added in a modular manner to form a U shaped complex with an ultimate design capacity of 100 million passengers per annum . ? ? Third runway, amongst the longest in Asia, has started operations in 2008 and is capable of handling A380 sized aircraft. New domestic terminal inaugurated on 26th February, 2009 State- of- the- art integrated terminal to be inaugurated on 3rd July, 2010. Terminal 3 would be a state- of- the- art complex featuring Common Use Terminal Equipment (CUTE) and an advanced 5 level in-line baggage handling system with explosive detection technology for greater efficiency and security. The check-in area would feature more than 160 check-in counters. Passengers would greatly benefit as check-in and security clearances would be faster and less obtrusive. For international passengers more than 90 desks would facilitate immigration procedures. In addition, the terminal would also feature 76 aerobridges. The two tier terminal building would feature the departure complex on the upper level and the arrivals on the lower level. The roof of the building will have stylized incisions to allow daylight, but will be angled to protect the interior from direct sunlight. The effect would create a calm environment and maximize the sense of volume, space and light inside. The use of natural light would reduce the dependency on artificial light during day-time. The arrival hall will feature both standard and wide-body baggages reclaim belts. Passengers will emerge from bag reclaim into the Internal Landside Arrivals Concourse from where transit passengers would use elevators to proceed to the Departures level. 4 piers will provide access to the aircraft from the terminal. Access to the new terminal would be via a 6 lane approach road. The Airport would also be connected via dedicated high speed Metro line connecting to the city centre. Institute of Management Technology, Nagpur Page 14 Competency Based Training SIP at DIAL | GMR Human Resources Department at DIAL The Human Resources Department is well structured and organized at DIAL with several verticals existing in the HR department itself. The HR department is divided amongst 4 Subdivisions. TDG KM ER HR Dept. TMG FMS FIG. The HR Department at DIAL The TMG Dept stands for the Talent Management and Acquisition Department and it takes care of the Annual Operating Plan, Performance management Process which supposedly includes Recruitment. The functional area of the group is in itself quite elaborative of their operating areas. One of the recent actions that have been added to their verticals is Exit interviews. Manpower Planning, Declaring the vacancies, Recruiting for a position, Induction of the New Joinee and manage the appraisal process through an unbiased performance management process. The recruited employee then becomes the responsibility of ER Department which takes care of every need of the employee from the Introductions, Documentation to Familiarization in the organization, Payroll management, Leave and attendance management etc. The Talent Development Group has the immense responsibility of ensuring the development of the employee through a training programme distributed all year long. The organization has a policy that every employee has to undergo 5 man days of training in a financial year. For FMS (Facility management System), as the name suggests, they take care of the Facilities and procurement of any desirables of the employees. Functions, Parties, any special requirement for the trainings. The Knowledge Management Team is in the evolving stage at DIAL and carries the responsibility of on the Job learning enhancement of the employees. For a segregation of the job and a smooth functioning, the department may have been separated but there is a very significant linkage between the working of these teams, rather Institute of Management Technology, Nagpur Page 15 Competency Based Training SIP at DIAL | GMR the sub divisions. This might get even clear by this explanation. The TMG Group recruits and fulfills the vacancy requirement of any Post/Department and it has to be in accordance with the Annual Operating Plan sketched at the beginning of every financial year. The salary negotiations are also carried out by the TMG executives. But, the payroll process is taken care by ER, which obviously requires proper communication amongst these two subdivisions. Now, from the very day of joining till the end of the employee? s service they are taken care by ER and the annual employee engagement survey is administered by the TDG Group. Although the survey is outsourced and is carried out by Gallop Consultancies, which is a Marketing Research Outsourcing Agency. Also the training and development needs are identified during the Performance Appraisal Dialogue process, carried out by TMG on the basis of which the TDG rolls out the training calendar for that particular year. This need of training is shortened to some extent due to the existence of KM Dept. as it keeps feeding relevant information to the employees at regular interval of time. The idea behind the above explanation is to exhibit the close linkage between the subdivisions of the HR Department despite their independent nature of work. For an organization like DIAL, which works on the Public-Private partnership model, HR Dept. plays a crucial role. The coherent functioning of the department? s sub-division ensures smooth as well as proper functioning of the organization on the whole. Institute of Management Technology, Nagpur Page 16 Competency Based Training SIP at DIAL | GMR Objective ? Study and document the developments in the area of competency based training. ? To familiarize, the concept of competency based training at DIAL. ? To sketch a line of action for the implementation of Competency Based Training at DIAL. To list the effects on other functions and policies. Institute of Management Technology, Nagpur Page 17 Competency Based Training SIP at DIAL | GMR Competency It is about identifying preferred behaviors and personal skills which distinguish ex cellent and outstanding performance from the average. A Competency is something that describes how a job might be done, excellently; however, a Competence only describes what has to be done, not how. So the Competencies might describe the duties of a Sales Manager for example, such as manage the sales office and its staff, prepare quotations and sales order processing, manage Key Accounts and supervise and motivate the field sales force. The Competencies which might determine excellence in this role could include Problem Solving and Judgment; Drive and Determination; Commercial Awareness; Inter-personal skills etc, all of which might be described further by Behavioral Indicators relating specifically to that post in that organization. Thus competency is defined as a skill, knowledge, ability or behavioral characteristic that is associated with superior performance. There are two basic levels of competencies: Technical and Behavioral. The first level, Technical Competencies are predominately about acquired knowledge and technical abilities and skills. These competencies are often easier to see, train for and develop. Examples of technical competencies include knowledge of applicable legislation and case law, knowledge of valuation methodology. The second level of competencies is behavioral competencies, such as communication skills or team member skills. These competencies can be harder to see and develop but are key indicators of how an individual approaches his/her work. All competencies identified as key competencies by behavioural competency (BC) Assessment should be: ? Observable ? Measurable ? Linked to job requirements ? Linked to BC Assessment strategy and business needs ? Future-oriented ? Based on strong performance Institute of Management Technology, Nagpur Page 18 Competency Based Training SIP at DIAL | GMR These characteristics are applied more and more by organizations because they provide significant help with key problems such as: ? ? ? Clarifying workforce standards and expectations Aligning individuals, teams, and managers with the organizations business strategies Creating empowerment, accountability, and alignment of coach, team member, and employer in performance development ? Developing equitable focused appraisal and compensation decisions. Competencies only include behaviors that demonstrate excellent performance. Therefore, they do not include knowledge, but do include applied knowledge or the behavioral application of knowledge that produces success. In addition, competencies do include skills, but only the manifestation of skills that produce success. Finally, competencies are not work motives, but do include observable behaviors related to motives. (See figure below for an illustration of these key points. ) Institute of Management Technology, Nagpur Page 19 Competency Based Training SIP at DIAL | GMR Competency mapping Competency mapping is a process of identifying key competencies for a particular position in an organization, and then using it for job-evaluation, recruitment, training and development, performance management, succession planning, etc. The competency framework serves as the bedrock for all HR applications. As a result of competency mapping, all the HR processes like talent induction, management development, appraisals and training yield much better results, states well-known HR consultant Ullhas Pagey. He however points out that the competency movement has caught on much better in the non-IT sector than the IT sector. Unless managements and HR heads have holistic expectations from their HR departments, the competency movement is unlikely to succeed as it requires lot of time, dedication and money, he adds, pointing out that before an organization embarks on this journey it has to be very clear about the business goals, capability-building imperat ives and core competencies of the organization. The competency mapping process needs to be strongly integrated with these aspects. More often than not, we are overwhelmed by new management fads at regular intervals of time. This has happened so often that we have developed immunity towards them. Is Competency Mapping a passing fad or is it a new paradigm in HR Systems? It becomes important to examine some questions, 1. How do we clearly link training to performance? 2. How do we align jobs people to organizational and customer requirements? 3. How do we Customize Appraisals to each job position? 4. How do we select people who perform? 5. How do we reduce apple-polishing and bias in appraisals? The ineffectiveness of the underlying systems has gone unnoticed because of the lack of any sort of effectiveness measurement process. The resultant blunders have been costly. Look at the following example: A Company A† short-listed two candidates, No 1and No. 2 for the position of Head HR. No. 1 got selected, No2 got a job in another organization. After 3 years and after considerable HR trouble, Co A asked No1 to quit and again selected No2 for the job. The amount of damage that resulted out of the faulty selection is immeasurable. Institute of Management Technology, Nagpur Page 20 Competency Based Training SIP at DIAL | GMR In a Company â€Å"B†, there was an effective ASM. He was facing insubordination from one of his reportees. After the failure of repeated private counseling, the ASM took his subordinate to task, publicly. The RSM was a party to the incident. Subsequently, the RSM gave the ASM a bad remark in the area of interpersonal relations in the appraisal form. This had a direct impact on the increment of the ASM, which slowly resulted in mounting his cynicism. This is how a high performer got converted into a cynical organization baiter. There is obviously something seriously wrong in the HR practices, which have been predominant till now. Most of the time, HR departments, have been getting away with such slipshod HR processes. Competency Mapping answers the questions quoted above and also reduces the incidence of cases such as those of Co A Co. B. Institute of Management Technology, Nagpur Page 21 Competency Based Training SIP at DIAL | GMR METHODS OF COMPETENCY MAPPING It is not easy to identify all the competencies required to fulfill the job requirements. However, a number of methods and approaches have been developed and successfully tried out. These methods have helped managers to a large extent, to identify and reinforce and develop these competencies both for the growth of the individual and the growth of the organization. In the following section, some major approaches of competency mapping have been presented. Assessment Centre: â€Å"Assessment Centre† is a mechanism to identify the potential for growth. It is a procedure (not location) that uses a variety of techniques to evaluate employees for manpower purpose and decisions. It was initiated by American Telephone and Telegraph Company in 1960 for line personnel being considered for promotion to supervisory positions. An essential feature of the assessment center is the use of situational test to observe specific job behavior. Since it is with reference to a job, elements related to the job are simulated through a variety of tests. The assessors observe the behavior and make independent evaluation of what they have observed, Which results in identifying strengths and weaknesses of the attributes being studied. It is, however, worth remembering that there is a large body of academic research which suggests that the assessment centre is probably one of the most valid predictors of performance in a job and, if correctly structured, is probably one of the fairest and most objective means of gathering information upon which a selection decision can be based. From the candidate? s perspective it is important to be natural and to be oneself when faced with an assessment centre, remembering always that you can only be assessed on what you have done and what the assessors can observe. The International Personnel Management Association (IPMA) has identified the Following elements, essential for a process to be considered as assessment center: ? A job analysis of relevant behavior to determine attributes skills, etc. for effective job performance and what should be evaluated by assessment center. ? Techniques used must be validated to assess the dimensions of skills and abilities. ? Multiple assessment techniques must be used. ? Assessment techniques must include job related simulations. ? Multiple assessors must be used for each assessed. ? Assessors must be thoroughly trained. Institute of Management Technology, Nagpur Page 22 Competency Based Training SIP at DIAL | GMR Behavioral observations by assessors must be classified into some meaningful and relevant categories of attributes, skills and abilities, etc. ? Systematic procedures should be used to record observations. ? Assessors must prepare a report. ? All information thus generated must be integrated eithe r by discussion or by Application of statistical techniques. The techniques used by Assessment centers are given below: Assessment Centers Interview Simulations/Role Plays Case Studies/Analysis Excercise Group Discussions In Tray Positive Task Roles Positive Maintenance roles Apart From the Assessment Centers, there are several other techniques that organizations carry out in order to map the competencies. Some of which are mentioned below: ? Critical Incidents Technique: It is difficult to define critical incident except to say that it can contribute to the growth and decay of a system. Perhaps one way to understand the concept would be to examine what it does. Despite numerous variations in procedures for gathering and analyzing critical incidents researchers and practitioners agree the critical incidents technique can be described as a set of procedures for systematically identifying behaviors that contribute to success or failure of individuals or organizations in specific situations. Institute of Management Technology, Nagpur Page 23 Competency Based Training SIP at DIAL | GMR ? Interview Techniques for Competency Mapping: Almost every organization uses an interview in some shape or form, as part of competency mapping. Enormous amounts of research have been conducted into interviews and numerous books have been written on the subject. There are, however, a few general guidelines, the observation of which should aid the use of an interview for competency mapping. The interview consists of interaction between interviewer and applicant. If handled properly, it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. If the interview is not handled carefully, it can be a source of bias, restricting or distorting the flow of communication. Since the interview is one of the most commonly used personal contact methods, great care has to be taken before, during and after the interview. Questionnaires o Common Metric Questionnaire (CMQ) o Functional Job Analysis o Multipurpose Occupational System Analysis Inventory (MOSAIC) o Occupational Analysis Inventory o Position Analysis Questionnaire (PAQ) o Work Profiling System(WPS) o Psychometric Tests In stitute of Management Technology, Nagpur Page 24 Competency Based Training SIP at DIAL | GMR The Competency Mapping cycle goes through following processes, given below: Step 1: Identifying Job Families All the jobs in the organization are grouped on the basis of commonality. Step 2: Identifying Competencies This is a crucial step in the Competency Mapping process. The competency set emerges from 3 key stakeholders: 1. Competency set related to the organization mission / vision / strategy. 2. Competency set related to Internal and External Customer Expectations. 3. Competency set related to departmental focus areas. Step 3: Defining Competencies The competencies identified have to be defined concisely in order to reduce misinterpretation. Step 4: Strategizing Competencies The competencies identified are divided into Vital, Essential and Desirable competencies for each job family. Step 3 and 4 signify the importance of a competency dictionary for every organization strategizing to implement CBT Process. Step 5: Defining Measurement Scale The calibrations in the measurement scale of each competency are defined. Step 6: Position Profiling: 1. Vital, Essential and Desirable Competencies. 2. The expected calibration on the measurement scale of each competency. Step 7: Person Profiling Each person is profiled in terms of level of knowledge application and attitudes on the measurement scale of each competency. The superimposing of the Person profile on the Position profile has wide ranging ramifications. These two profiles integratively have the potential of enhancing the effectiveness of all HR Systems. The gaps between the position profile and the person profile give birth to training needs. Institute of Management Technology, Nagpur Page 25 Competency Based Training SIP at DIAL | GMR Concept of Competency Dictionary: For all competencies in the dictionary, a definition is provided. Each competency also includes a proficiency scale that indicates the full range of expression for the competency. Most proficiency scales have five levels. Each proficiency level is described in terms of behavioral indicators. The behaviors at each level of the scale are illustrative rather than definitive; that is other examples of behavior are possible. Each competency scale is cumulative which means that, although behaviors from lower levels are not repeated at higher level, they nonetheless apply. The contents of this dictionary represent the behavioral or non-technical competencies that apply to jobs in the Public Services. The dictionary can be used for a variety of purposes including recruitment and staffing, learning and career development and performance management. For each job, choose competencies and proficiency learning that are most critical to performance excellence. Institute of Management Technology, Nagpur Page 26 Competency Based Training SIP at DIAL | GMR Advantages of Competency Mapping For Organization: The advantages of competency mapping for the companies or organizations are as follows: †¢ Establishes expectations for performance excellence. †¢ Improved job satisfaction and better employee retention. †¢ Increase in the effectiveness of training and professional development programs because of their link to success criteria. †¢ Provides a common understanding of scope and requirements of a specific role. Provides a common, organization wide standard for career levels that enable employees to move across business boundaries. †¢ Help companies â€Å"raise the bar† of performance expectations. †¢ Help teams and individuals align their behaviors with key organizational strategies. For Managers: Th e competency mapping provides following advantages to the managers: †¢ Identify performance criteria to improve the accuracy and ease of the selection process. †¢ Easier communication of performance expectations. †¢ Provide a clear foundation for dialogue to occur between the managers and employees and performance, development and career-oriented issues. For Employees: The employees in an organization get the following advantages by competency mapping: †¢ Identify the behavioral standards of performance excellence. †¢Provide a more specific and objective assessment of their strengths and the tools required to enhance their skills. †¢ Enhances clarity on career related issues. †¢ Helps each understand how to achieve expectations. Institute of Management Technology, Nagpur Page 27 Competency Based Training SIP at DIAL | GMR Disadvantages of Competency Mapping ? ? ? ? ? ? ? ? ? Time Expense. Expertise requirements. Omission of critical competency factors which panelists are unaware of. Data are limited to items and concepts included in the survey. It cannot identify new competencies or nuances of competency can also be inefficient. Cost of system hardware and software. Provides characteristics of job rather than those of the people who do the job well. Task lists too detailed to be practical and do not separate truly important tasks from the routine activities. Possibility of proving to be Expensive and inefficient. Institute of Management Technology, Nagpur Page 28 Competency Based Training SIP at DIAL | GMR Competency based Training Definition: Competency-based training is one of the latest buzz phrases on the HR Planet. It? s a combination of a few steps, by following which, employees can be armed with the knowledge they need to do their jobs. In recent years, there has been a gradual move to using competencies from job descriptions in training. This type of training ensures that employees receive only the need to know information instead of nice to know information. To develop a competency-based program, HR should make sure that the job descriptions include the correct knowledge, skills, and abilities thats the foundation. Once this foundation is complete, it is found to be fairly easy to establish competency-based training if you follow a few simple steps. Steps in carrying out a Competency based Training: ? The first step should be to assemble a group of employees who are currently doing the job for which training needs to be imparted. This group of subject matter experts (SMEs) should be a mix of high performers, managers, and supervisors. Get the SME group together and help them identify the knowledge, skills, and abilities needed to function in their jobs. The SME group can take each competency, discussing all of the knowledge, skills, and abilities in that competency. But the result of breaking down the competencies gives the objectives for training. There is a hidden benefit to approaching competency-based training this way: once the competencies are identified and broken down, you can ask executive managers to approve what youve come up with. Getting the involvement of executive managers almost guarantees their buy-in and may make the job much easier. Now that identification and breaking down the competencies has been done, one can start building training from those individual competencies. With a module based on units of competencies, the tools needed to complete basic tasks is already with the employees. M oving through the competencies, and with the SME group approving each set of KSAs, one would be able to create training thats important to your employees success on the job. ? Once the training is live, you can measure its effectiveness. You can do this by introducing surveys to the trained employees and their supervisors. One could survey new employees at a designated interval, usually 45 to 60 days. In the survey, focus questions Institute of Management Technology, Nagpur Page 29 Competency Based Training SIP at DIAL | GMR on the training objectives, which came directly from the competencies. Ask the new hire? s if they feel comfortable performing the basic work that was explained in training. On the other hand, also ask the supervisors if theyve observed the new hires ability to perform basic functions. Ask them to rate the new hires ability on a scale. If a majority of new hires report no problems with basic functions and their supervisors tell us that they have few errors and few questions on the subject, training has been effective for the competency. If, on the other hand, theres some discomfort and numerous errors, one can go back to the competency itself, the training, or even the training instructor to find the problem. In a traditional training system, the unit of progression is time and it is teacher-centered. In a CBT system, the unit of progression is mastery of specific knowledge and skills and is learner/participant-centered. Background and Evolution of CBT: There appears to be substantial support for competency-based training. Norton (1987) believes that competency-based training should be used as opposed to the â€Å"medieval concept of time-based learning. † Foyster (1990) argues that using the traditional â€Å"school† model for training is inefficient. After in-depth examinations of three competency-based programs, Anthony Watson (1990) concluded that competency-based instruction has tremendous potential for training in industry. Moreover, in a 1990 study of basic skills education programs in business and industry, Paul Delker found that successful training programs were competency-based. Competency-based training for professionals is training based upon the participant? s ability to demonstrate attainment or mastery of skills performed under certain conditions to specific standards (the skills then become competencies). Norton (1987) describes five essential elements of a CBT system: ? Competencies to be achieved are carefully identified, verified and made public in advance. Criteria to be used in assessing achievement and the conditions under which achievement will be assessed are explicitly stated and made public in advance. ? The instructional program provides for the individual development and evaluation of each of the compet encies specified. ? Assessment of competency takes the participant? s knowledge and attitudes into account but requires actual performance of the competency as the primary source of evidence. Institute of Management Technology, Nagpur Page 30 Competency Based Training SIP at DIAL | GMR ? Participants progress through the instructional program at their own rate by demonstrating the attainment of the specified competencies. Characteristics of CBT: How does one identify a competency-based training program? In addition to a set of competencies, what other characteristics are associated with CBT? According to Foyster (1990), Delker (1990) and Norton (1987) there are a number of characteristics of competency-based programs. Key characteristics are summarized in Table 1. Characteristics of Competency-Based Training Programs ? ? ? ? Competencies are carefully selected. Supporting theory is integrated with skill practice. Essential knowledge is learned to support the performance of skills. Detailed training materials are keyed to the competencies to be achieved and are designed to support the acquisition of knowledge and skills. Methods of instruction involve mastery learning, the premise that all participants can master the required knowledge or skill, provided sufficient time and appropriate training methods are used. ? Participants? knowledge and skills are assessed as they enter the program and those with satisfactory knowledge and skills may bypass training or competencies already attained. ? ? ? ? Learning should be self-paced. Flexible training approaches including large group methods, small group activities and individual study are essential components. A variety of support materials including print, audiovisual and simulations (models) keyed to the skills being mastered is used. Satisfactory completion of training is based on achievement of all specified competencies. Institute of Management Technology, Nagpur Page 31 Competency Based Training SIP at DIAL | GMR Models and Simulations in CBT Models and simulations are used extensively in competency-based training courses. Airplane pilots first learn to fly in a simulator. Supervisors first learn to provide feedback to employees using role plays during training. Individuals learning to administer cardiopulmonary resuscitation (CPR) practice this procedure on a model of a human (mannequin). Satur and Gupta (1994) developed a model which facilitates skill development in performing and evaluating coronary anastomoses with an angioscope. The results of their study indicate that models are proving invaluable as a training tool. George H. Buck in a 1991 historical review of the use of simulators in medical education concluded that â€Å"Given the developments in this technology within the last 50 years, it is possible that the use of simulators will increase in the future, should the need arise to teach new concepts and procedures at set times to large groups of individuals†. Researchers in two different experimental studies involving training people to perform self-examinations compared several methods and found that using models was the most effective training method (Campbell et. al. 1991 and Assaf et. al. , 1985). Norton (1987) believes that participants in a competency-based training course should learn in an environment that duplicates or simulates the work place. Richards (1985) in writing about performance testing indicates that assessment of skills requires tests using simulations (e. g. , models and r ole plays) or work samples (i. e. , performing actual tasks under controlled conditions in either a laboratory or a job setting). Finally, Delker (1990) in a study of business and industry found that the best approach for training involved learner-centered instruction using print, instructional technology and simulations. Evaluation and Assessment in CBT: Evaluation in traditional courses typically involves administering knowledge-based tests. While knowledge-based assessments can certainly be used in CBT to measure mastery of information, the primary focus is on measuring mastery of skills. In keeping with this, Thomson (1991) reports that the decision to recognize a performance as satisfactory and to determine competence should be the basis for success of a competency-based program. Moreover, Foyster (1990) argues that assessment in competency-based programs must be criterion-referenced with the criterion being the competencies upon which the program is based. Finally, Richards (1985) indicates that Institute of Management Technology, Nagpur Page 32 Competency Based Training SIP at DIAL | GMR simulation and work sample performance tests should include a checklist or some type of rating scale. Implications for Using CBT: In a 1990 study of three operating competency-based programs, Anthony Watson identified a number of implications for organizations considering implementing a CBT system: ? ? ? ? ? Organizations must be committed to providing adequate resources and training materials. Audiovisual materials need to be directly related to the written materials. Training activities need to match the objectives. Continuous participant interaction and feedback must take place. Trainers must be trained to conduct competency-based training courses. Institute of Management Technology, Nagpur Page 33 Competency Based Training SIP at DIAL | GMR Advantages and Limitations of CBT One of the primary advantages of CBT is that the focus is on the success of each participant. Watson (1990) states that the competency-based approach â€Å"appears especially useful in training situations where trainees have to attain a small number of specific and job-related competencies†. Benefits of CBT include: ? ? ? ? Participants will achieve competencies required in the performance of their jobs. Participants build confidence as they succeed in mastering specific competencies. Participants receive a transcript or list of the competencies they have achieved. Training time is used more efficiently and effectively as the trainer is a facilitator of learning as opposed to a provider of information. ? More training time is devoted to working with participants individually or in small groups as opposed to presenting lectures. More training time is devoted to evaluating each participant? s ability to perform essential job skills. ? While there are a number of advantages of competency-based training, there also are some potential limitations. Prior to implementing CBT, it is important to consider these limitations: ? Unless initial training and follow up assistance is provided for the trainers, there is a tendency to â€Å"teach as we were taught† and CBT trainers quickly slip back into the role of the traditional teacher. ? A CBT course is only as effective as the process used to identify the competencies. When little or no attention is given to identification of the essential job skills, then the resulting training course is likely to be ineffective. ? A course may be classified as competency-based, but unless specific CBT materials and training approaches (e. g. , learning guides, checklists and coaching) are designed to be used as part of a CBT approach, it is unlikely that the resulting course will be truly competencybased. Institute of Management Technology, Nagpur Page 34 Competency Based Training SIP at DIAL | GMR Implementation of Competency Based Training at DIAL The implementation of a policy is critical for the organization not just because of the cost factor attached with it. There are significant repercussions of a policy implementation in an organization, whatever the size of the organization may be. Objective of the organization, Interest of the stakeholders, Perception of the employees and interest of the prospective employees are the major concern immediately before the implementation phase. So, before the implementation one needs to look into the minutes of such issues to ensure success of the project. DIAL is an organization working on a Public Private Partnership Model. There should be enough work done in order to get a nod of the stakeholders for the implementation. This can only be achieved if there is a sufficient amount of research done on the issue in the context of the organization. The following flowchart would give sufficient clarity on the issue: Implementation of CBT Gaining Organizational Support Creating Competency Models Assessment Phase Programme Designing Phase Fig. Implementation Cycle of CBT Considering the work culture, Size and hierarchy of Power distribution at DIAL, the implementation should be divided into four phases. The first phase takes care of alignment of organizational objectives and stakeholders interest to the outcomes of the implementation. After getting the buy in for the project, there should be a model which serves as the basis for any assessment or comparisons. The assessment system should then be decided in order to map the existing competencies of the employees. The programme design phase takes care of shortening the gap between existing and required competencies for the employees by designing apt training programme(s). Institute of Management Technology, Nagpur Page 35 Competency Based Training SIP at DIAL | GMR PHASE 1: Gaining Organizational Support No matter what changes you inculcate in an organization, if there are roadblocks of any sort in either internal or external atmosphere, policy implementation cannot be achieved successfully. So, before even making a proposal document for the policy implementation buy in, there should be a performance diagnosis which could identify all the existing as well as potential roadblocks affecting the performance and should be immediately taken care of. This can be done easily by a simple questionnaire asking the respondents to report about the barriers at work and later asking them to prioritize those barriers. This would lead you to the most critical of the barriers at work. Before moving ahead with the schedule, care must be taken to remove them. Now that the background is set to approach the boardroom, following should be the focus area during this session with the decision makers of the organization. A proper alignment of business goals and outcomes of competency based training approach should be made. It would be better if the audience is asked to enlist and then rank the objectives of the organization which they feel is important for the success of the organization. Then it should be correlated with the outcomes of the CBT Implementation so that the decision makers are in no doubt on whether or not the project is in sync with the business objectives. Enlist the present pproach on the CBT subject and compare it with the projected approach in terms of productivity and efficiency. Also, it is important to stress that the employees should be aware about what exactly they need to do, the results that they need to achieve and the quality issues attached t o the achieved results. The first two issues can be sorted even without CBT through proper Job analysis and goal setting but the quality of output which is one of the major factors brings in the concept of competency and thus, the competency based training. It would be significantly influential if an estimation of the mis-match about what is required and employee? s perception about the required objectives can be quantified. According to a recent research, there is around 50 % mis-match at work related to above mentioned issues. Introducing concepts of exemplary performance and difference between exemplary and star performance in terms of efficiency is also a good idea to get the desired response in the scheduled meeting. A proper explanation of the role of management and clear sketch of organization? s state after implementation of the CBT would further strengthen the possibility of an affirmative output from the Meeting. A ready action plan for the further phases should also be discussed. Institute of Management Technology, Nagpur Page 36 Competency Based Training SIP at DIAL | GMR PHASE 2: Creating Competency Models †¢ Allocate a team. Enlist the phases and target Jobs to be covered in each phase for which competencies will be identified and model will be prepared. STEP 1 STEP 2 †¢ Mould competency requirements according to strategic requirements of the organization. STEP 3 †¢ Create t he action plan and corresponding deadlines. STEP 4 STEP 5 †¢ Conduct regular briefings with team heads. STEP 6 †¢ Research Job Outputs and Job Tasks. STEP 7 †¢ Identify Key Job Competencies STEP 8 †¢ De-lineate technical and behavioural Competency requirements STEP 9 †¢ collate all the competencies to document a Competency model/Dictionary. †¢ Conduct a review meeting with the project team to check the validity of captured competencies under the specific Jobs. STEP 10 Fig. Action Plan for creating Competency Model/Dictionary The whole idea behind doing this is to sketch out the required competencies for each and every post in the organization. As mentioned earlier in the literature review, Competencies incorporate two kinds of skills: Technical and Behavioral. An employee when goes through the dictionary, he must leave it with a clarity on what competencies he is required to depict at the organization. The verification of the competencies could be done by a sketch of competencies followed by an interview with the position holders to ensure the reliability and validity of the Model. Institute of Management Technology, Nagpur Page 37 Competency Based Training SIP at DIAL | GMR PHASE 3: ASSESSMENT PHASE Competency Assessment to define is simply an evaluation of an individual performer? s competence in comparison to some performance requirement which is generally a standard set of competencies such as Competency Model/Dictionary. The Assessment systems used today around the globe comprises of: ? Paper-Pencil Test ? Assessment Centers ? Simulation Exercises ? Multi Rater Feedback Methods ? Certification Practices At this juncture when the organization looks for ways to motivate employees and empower them by entrusting upon them, critical decision making, it would be better if the multi rater feedback or 3600 feedback system for assessment where everybody would feel involved and would lead to motivation for the employees. Also, the scope for error would be minimized to certain level as employees giving feedback would also act as checkpoints for checking the reliability and validity of the competencies of the Subject. Superiors Colleagues Employee Colleagues Subordinates Fig. Representation of multi-rater assessment center’s Institute of Management Technology, Nagpur Page 38 Competency Based Training SIP at DIAL | GMR The whole cycle of events which took place in case of the Phase 1, shall be reported in order to make a GO/NO GO decision regarding the multi rater assessment centers. Justification for the same has to be given in context of its effects on business goals and objectives. The schedule of events for the verification during the assessment phase is: ? ? ? ? ? ? ? ? ? Select a team and Manager. Allocate project resources. Make a GO/NO GO decision. Develop Data collection instruments. Train the raters Acquire the data input, test it, Analyze. Collect the assessment data from raters. Interpret the ratings Assess the achievement of the objectives set. Smaller organizations have the issues with maintaining the anonymity due to its size but DIAL being a decently sized organization can be approved to use the Multi rater assessment Centers. Another issue which is raised is the reliability and validity of the data is crucial for the multi rater assessment center? s functioning in a healthy manner. The raters as well as the analyzer must be trained well to avoid such anomalies to creep in the data. It identifies employees strength and weakness which are critical for the organization, Identifies competency gaps well in advance, before they could create some problems, Provides sufficient information for succession planning and career planning, Improves team performances and relationship, Provides insights into subordinate and peer competency strengths and weaknesses. Institute of Management Technology, Nagpur Page 39 Competency Based Training SIP at DIAL | GMR PHASE 4: PROGRAMME DESIGNING PHASE Another buzz word in the training programme designing world is Individual Development contract planning (IDCP). It is a process of filling skills gap that is the difference between the individual strengths and the standard requirement for the position that the individual is currently holding. The IDCP is a written document that enlists the developmental gaps or the developmental needs of the individual. Also, it describes the focus areas which need to be addressed in order to close the gap. It can be identified with the section of the Performance management Process (PMP), where the training needs and issues are addressed, training already attended is mentioned and comments on whether it was beneficial or not is reflected. The main objectives for introducing IDCP at DIAL are: 1. To help individual? s in narrowing the gap between current competencies and the competencies necessary for the star/exemplary performance. 2. To help supervisor? s in managing performance of their subordinates. 3. To generate resources necessary for the Succession planning stage. 4. To sketch a roadmap for individual? s easy access of focus area(s) for development. These are the benefits the organization drives out of the whole process. Firstly, a clear and precise plan for individual? s development has been identified. Secondly, a highly efficient data which could be used to cure a potential problem before it could harm the organization. It also helps in justification of individual development expenditures. A ready reckoner for critical stages of succession planning. The costs associated with the IDCP implementation is given below: ? ? ? Interpreting assessment results. Planning for development. Tracking and evaluating developmental results. But the implementation has significant benefits which would outweigh the costs associated: ? ? ? Would increase the flexibility of individual performers. Can provide a pool of talent available to be tapped in future. Would give the employees, clarity on focus areas which they need to address. Page 40 Institute of Management Technology, Nagpur Competency Based Training SIP at DIAL | GMR Effects on Policies and strategies of the Organization Such a large scale policy implementation has an effect on each and every part of the organization but a quality check should be installed in order to see that the impact is positive and is not a potential danger for the organization. A sketch of major effects on the policies and strategies are being given below but it is not just these, which are getting affected. There are a whole lot of eff