ACKNOWLEDGMENT

All praises and thanks are for Almighty Allah who is the source of all knowledge and wisdom endowed to mankind and to the humanity as a whole. I would particularly like to thank my Course Instructor Dr.Nadeem Syed for many insights he provided us. Discussions in the class has also proven most helpful when I was formulating my interview questions In the end, I express my deep appreciation to all the people who share their experience and knowledge with me.

List of Questions:

• What is leadership for u?

• What traits do u think are essential for effective leadership

• How do you delegate your decisions?

• What are your essentials for your planning activities?

• How do you manage your time?

• What leadership behaviors are essential for u?

• Do you use directive leadership? If yes then how its mechanism is is regulated by you?

• How do you evaluate your decisions? If yes, what were the findings?

• Do you think are there any performance deficiencies? If yes how do u manage them?

• Which Decision procedure do you use mostly and how do you implement it

• Which type of power does exercise mostly by u?

• What are your future planning’s regarding your employees?

The State Bank of Pakistan (SBP) is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial capital of Pakistan, Karachi with its second headquarters in the capital, Islamabad.

Background and history of Sbp:
Before independence on 14 August 1947, during British colonial regime the Reserve Bank of India was the central bank for both India and Pakistan. On 30 December 1948 the British Government's commission distributed the Reserve Bank of India's reserves between Pakistan and India -30 percent (750 M gold) for Pakistan and 70 percent for India.
The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948
Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was charged with the duty to "regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage".
A large section of the state bank's duties were widened when the State Bank of Pakistan Act 1956 was introduced. It required the state bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". In February 1994, the State Bank was given full autonomy, during the financial sector reforms.
On January 21, 1997, this autonomy was further strengthened when the government issued three Amendment Ordinances (which were approved by the Parliament in May 1997). Those included were the State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalisation Act, 1974. These changes gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments to the Banks Nationalization Act brought the end of the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and allowed the jobs of the council to be appointed to the Chief Executives, Boards of the Nationalized Commercial Banks (NCBs) and Development Finance Institutions (DFIs).
The State Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the chief executives, the Boards of Directors of banks and DFIs.
The State Bank of Pakistan also performs both the traditional and developmental functions to achieve macroeconomic goals. The traditional functions, may be classified into two groups: • The primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy. • The secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions.
The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalization of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamisation of the banking system.
Parameter for Fluidity
The State Bank of Pakistan has also been entrusted with the responsibility to carry out monetary and credit policy in accordance with Government targets for growth and inflation with the recommendations of the Monetary and Fiscal Policies Co-ordination Board without trying to effect the macroeconomic policy objectives.
The state bank also regulates the volume and the direction of flow of credit to different uses and sectors, the state bank makes use of both direct and indirect instruments of monetary management. During the 1980s, Pakistan embarked upon a program of financial sector reforms, which lead to a number of fundamental changes. Due to these changed the conduct of monetary management which brought about changes to the administrative controls and quantitative restrictions to market based monetary management. A reserve money management programme has been developed, for intermediate target of M2, that would be achieved by observing the desired path of reserve money - the operating target.
State Bank of Pakistan has changed the format and designs of many bank notes which are currently in circulation in Pakistan. These steps were taken to overcome the problems of fraudulent activities.
Areas of Banking
The State Bank of Pakistan looks into a lot of different ranges of banking to deal with the changes in economic climate and different purchasing and buying powers. Here are some of the banking areas that the state bank looks into; • State Bank’s Shariah Board Approves Essentials and Model Agreements for Islamic Modes of Financing • Procedure For Submitting Claims With Sbp In Respect of Unclaimed Deposits Surrendered By Banks/Dfis. • Banking Sector Supervision in Pakistan • Micro Finance • Small Medium Enterprises (SMEs) • Minimum Capital Requirements for Banks • Remittance Facilities in Pakistan • Opening of Foreign Currency Accounts with Banks in Pakistan under new scheme. • Handbok of Corporate Governance • Guidelines on Risk Management • Guidelines on Commercial Paper • Guidelines on Securitization • SBP.Scheme for Agricultural Financing

Interview

What is leadership for u?

For me, leadership is all about getting work done. I have many people working under me but I have the sole responsibility of my people. I influence them, I care for them and in return they do the work for me and this in turn keeps us on track as per the organization needs

What traits do u think are essential for effective leadership?

Effective leader ship requires flexibility, now for example one of my worker was not feeling well but an important task was assigned to him I went to him personally. At times you must tolerate stress and for me if any person is able to control stress then he can over come most of his problems. Achievement is another factor, for example if I set challenging goals for my self and for my people then it becomes evident that if the conditions are good then an extra effort will be applied. You must align your self with other person feelings in fact you should try to put your self in the other person’s shoes and by doing this you can become more effective too.

How do you delegate your decisions?

Delegation is done through a very conscious manner because for this you must got to have the other person skilled and appropriate .Obviously, you cannot offer meat to a vegetarion.The work that is delegated must be the one for which the person is capable and relevant.

DELEGATION is a good way to reduce the work load as every day the work is piled over here and things are complex.

What are your essentials for your planning activities?

We plan our activities according to the needs. For planning, there is a process in which all of the top management sit together and consent of every one is taken and many situational factors are also taken into consideration. We have contingency planning also which can come under use when it is appropriately needed but the operational planning of the day to day operations is needed most of the times. Planning is most important when there is crisis or decisions that are to be made within limited time requires much more from us than we normally do

How do you manage your time?

Time is always important in any job and you must have listened this that Time is money and over here at SBP this sentence is truly implemented When ever there is any work assigned to any person it is time bound. I do make a to do list every day so that I must know where will I be busy the whole day. I always tell my people to manage time in a way that could help them achieve more with in less time

What leadership behaviors are essential for u?

Leader ship changes according to the demands because an effective manager is the one who uses different behaviors at different times because some time I support my

employees when they need me but the rules and regulations always come first for me and it also depends whether the employee is senior or junior because once you have spend some time with the organization then you realize that how much discretion you can enjoy. For me, Work always comes first.

Do you use directive leadership? If yes then how its mechanism is regulated by you?

Yes, I do use it but only when it is appropriate for example when any employee is not working according to SOP’S then I exercise it or especially when there is less time to make any decision then I do use directive leadership

How do you evaluate your decisions? If yes, what were the findings?

Decisions are implemented and when the results show up then you can realize how much effective your decisions were and for reaching up to this level I have worked very hard and when I evaluate my decisions then I feel my self satisfied from what I have done. My person respects me and what ever decisions I have made those were good.

Do you think are there any performance deficiencies? If yes how does u manage them?

Well performance deficiencies are there like some biasness does occur and I personally try to remain un biased and I always try to behave like a professional and help my people. Deficiencies occur every where but you need to cope up with it in an adequate manner

. In always sit with my people when they require any assistance so that they can learn and over come that deficiencies

Which Decision procedure do you use mostly and how do you implement it?

Well an appropriate mix has been used by me .I do become autocratic when the situation requires me to do that. I do consult but only when I feel that consultation can be appropriate. Some time I only tell my people what I want from them and make sure that they should comply to what I need from them

Which type of power does exercise mostly by u?

I always try to get my work done by using different powers like if a person is not putting up an effort to do the work that is needed then I use my coercive power and when the work can be done through a simple way then I just ask my people to do the work. I always keep searching ways to gather information and disseminate it to the relevant subordinates (Information Power) and I try to keep friendly relations with my people (Referent Power)

What are your future planning’s regarding your employees?

My People are my asset as for the organization and even I am also an asset for my organization. I always focus on learning and believe that if my person does the same then they can make the most in the future. It does matter how much you know but it matters more how well you can learn

Conclusions From my Interview that I have taken, it has been concluded that Effective leadership comes from a mix of behaviors. Any leader who is responsible for his team employs various ways to cope up with the problem, at times he become directive with some sub ordinates and on some occasions he behaves very friendly. Biasness does exist and measures can be taken to overcome the deficiencies. Planning is a cognitive activity and when the planning is done consent is being taken. In a nut shell an effective leader is one who understands the situations and knows that what the situation demands and responses according to the situation
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