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Visit Report: Nepal Merchant Bank, Babar Mahal 24 May 2017 • • • • • • • • Col Bhaikrishna Khatri Col Sagar Bahadur Thapa Col Krishna Prasad Sapkota Col Shantosh Ballava Poudyal Col Sher Singh Bista Col Dhruba Prakash Shah T/Col Umeshwar Yadav T/Col Khum Bahadur Kunwar 1 Sequence 1. Background and Activities 2. Topics and Discussions 3. Overview of the NMB 4. Distinguishable Features of the NMB 5. NMB: A Center of Excellence? 6. Lessons Learnt 2 BACKGROUND AND ACTIVITIES • Visit as a part of the Leadership and Management package of NASC. • Objective was to learn about the roles, functions, leadership and management aspects of a private organization. • Brief by the CEO, Chief Business Officer and Human Resources Manager. • Discussions. 3 TOPICS AND DISCUSSIONS • Overview of the Organization • Corporate Governance • Human Resource Management 4 Overview of the Organization • • • • • • A class financial institution established in 1996 80 Branches, 130 Footprints, 901 employees Transaction range: 50,000 – 5 Billion Total holding: 6.4 Billion Balance sheet: Loan 61 and Deposit 71 Billion Subsidy companies of NMB group: • NMB Bank • NMB Capital • NMB Microfinance • Partner agencies: FMO Development Bank of Netherlands (51%), Malaysian Partner (7%), Employees Provident Fund (16%), and rest Public and Local business houses 5 Distinguishable Features • Member of Global Alliance for Banking on Values after the Global Financial Crisis of 1990 • Vision: • Value Based Banking (People, Planet and Prosperity) • Solution Driven (Understanding the problem, design a solution and execute) • Beyond Bricks and Mortars (Digitalization and paperless) • Unique vision of proportional emphasis on profit and service • Technology oriented 6 Distinguishable Features contd . • Focus: • Focus on generating employment • Social impact • Ethical banking • Investment areas • Energy – (Hydropower 2-50 MW) • Hospitality business • SME (Semi Micro Enterprises) • Priority on ethics and code of conduct • Promoting sustainable self reliance – Energy • Creating environment to attract FDI 7 NMB: A Center of Excellence? • Limitation: • Evaluation based upon the information provided by the briefers and interaction • Analysis of the following • Governance Structure: • Entities to attract/seek businesses- Customer service • Entities to govern effectively and efficiently – Risk management • Entities to enforce regulation, audit and compliance – Regulatory • Entity for effective HR management (Recruitment, staffing, incentives) Organization and governance structure appear robust 8 NMB: A Center of Excellence? • Leadership: • Professional, competent, experienced and aware • Showed ownership of the vision and commitment • Conscious to the organizational challenges and committed to address issues • Management • Efficient • Responsive • Forward looking • Innovative 9 NMB: Mantra for Success • Value based banking – Social impact • Self reliance movement – Energy is fundamental for cross sectoral development • Effective HR – Annual Performance Appraisal, Internal Promotion Opportunities • Ethical code of conduct – Employee training and education – NMB Academy • Project selection - Risk and social impact analysis • Strong and able leadership – Experience, education, vision and willingness, teamwork • Interpersonal Communication- Circulars, Memorandums, town halls 10 NMB Visit : Key Learning • Successful organizations have clear and attainable vision • Correct organizational structure is the foundation for effective services and functioning • Motivated leaders and competent staffs driven organization achieve the institutional goals • Efficient management binds the leaders with the staffs and fosters motivation • Interpersonal relationship are necessary for harmonious working atmosphere leading to productivity • Staff training and education is a key element for organizational growth • Staff welfare is crucial for motivation • Staff attrition is a challenge in modern day competitive 11 corporate environment Thank You 12