Undoubtedly, with Allah is the knowledge of the Hour, and He sends down rain and knows what is in the wombs of the mothers and no soul knows what it will earn tomorrow and no soul knows
Assignment
HABIB BANK LIMITED
Presented to:
Prof. Riaz Ahmed Mian
Presented by:
Roshaan Sadiq E11MBA001
Usman Ahmed E11MBA006
Imran Ramzan E11MBA062
Section A (Evening)
Acknowledgement
No one can say that I am perfect, everyone should admit that without the help of ALLAH and His people a man can’t get anything so we bow my head before almighty Allah with gratitude. We are also very much thankful and presents salute to many individuals who have helped us in shaping this report. We also very much thankful to lot of former fellows and contemporary colleagues who took the time and trouble during the last few days to speak to me about the way this text could be further improved.
We would like to extend our sincere gratitude to the following individuals:
Our Instructor Prof. Riaz Ahmed Mian, for her continuous guidance, support and encouragement. We exceptionally thankful for her assistance.
Class fellows for their support.
Executive Summary
The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank. This history of banking is traced to as early as 2000 B.C. Talking about commercial banking in Pakistan It was very difficult for Pakistan to build up its own Banking system immediately after independence without sufficient resources. By 30th June 1948 the number of schedule banks in Pakistan declined from mere scratch. Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. All this development in the banking sector is the result of untiring efforts of six decades. HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector bank with over 1,450 branches across the country and a customer base exceeding five million relationships.
Table of Contents
Particulars Page No#
Acknowledgment 04
Executive Summary 05
1. HBL
1. 1. Introduction 1. 2. History
1.3 Board of Directors 1.4 Audit Committee 1.5 Head Office 1.6 Vision & Mission
07 07 08 09 09 09 10 2. Human Resource Management
2.1 Selecting and Recruiting 2.2 Training & development 2.3 Performance Appraisal 2.4 Compensation
2.5 Employee Relation
14 15 22 27 37 38 3. Strengths & Weakness
3.1 Selecting and Recruiting 3.2 Training & development
3.3 Employees Services Safety, Health & Welfare 3.4 Manpower Planning
3.5 Salary Administration 3.6 Industrial Relation
40 40 40 41 42 44 45
Overall Strengths and Weakness 47
Suggestions 49
Habib Bank Limited
Introduction
Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector bank with over 1,450 branches across the country and a customer base exceeding five million relationships. The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over 170,000 shareholders following the public listing that took place in July 2007.
With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East. Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers. Rating HBL is currently rated AA (Long term) and A-1+ (Short term) and has a balance sheet size of USD 10.2 billion. It is the first Pakistani bank to raise Tier II Capital from external sources.
Overseas, it has operations in the following countries:
History
Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial intermediation while he was campaigning for the creation of a separate homeland for the Muslims of India. He persuaded the Habib family to establish a commercial bank that could serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played an important role in mobilizing funds from the Muslim community to finance the All-India Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an important role in channeling relief funds to the people hurt in the communal riots and violence that preceded the departure of the British from India.
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank of the newly formed Islamic Republic of Pakistan. HBL was incorporated on 25th August 1941 and operated in the private sector until its nationalization in 1974. HBL has been approved for privatization and the privatization commission has selected a Financial Advisor to prepare a comprehensive plan and assist in the sale process.
With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.
Board of Directors
1) Sultan Ali Allana Chairman
2) Mr. R. Zakir Mahmood President & CEO 3) Moez Jamal Director
4) Sajid Zahid Director 5) Ahmed Jawad Director 6) Mushtaq Malik Director
7) Sikandar Mustafa Khan Director
Human Resource Committee
1) Mr. Sultan Ali Allana Chairman 2) Mr. R. Zakir Mahmood Member 3) Mr. Sajid Zahid Member
4) Dr. Razi Azmat Secretary
Audit Committee
1) Mr. Moez Ahamed Jamal Chairman 2) Mr. Sajid Zahid Member
3) Mr. Ahmed Jawad Member 4) Mr. Salim Amlani Secretary Chief Financial
1) Mr. Ayaz Ahmed
Company Secretary
1) Ms. Nausheen Ahmad
Auditors
Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants Head Office Registrars
Our Brand
Our brand identity is the outward expression of what we stand for as an organization. This is summarized in our vision, mission and is supported by our values.
Vision & Mission
“Enabling people to advance with confidence and success”
“To make our customers prosper, our staff excel and create value for shareholders”
Values
Our values are the fundamental principles that define our culture and are brought to life in our attitudes and behaviour. It is our values that make us unique and unmistakable. Our values are defined below:
Excellence
This is at the core of everything we do. The markets in which we operate are becoming increasingly competitive, giving our customers an abundance of choice. Only through being the very best - in terms of the service we offer, our products and premises - can we hope to be successful and grow.
Integrity
We are the leading bank in Pakistan and our success depends upon trust. Our customers - and society in general - expect us to possess and steadfastly adhere to high moral principles and professional standards.
Customer Focus
We understand fully the needs of our customers and adapt our products and services to meet these. We always strive to put the satisfaction of our customers first.
Meritocracy
We believe in giving opportunities and advantages to our employees on the basis of their ability. We believe in rewarding achievement and in providing first-class career opportunities for all.
Progressiveness
Domestic and International Networks
An International Bank: HBL has a presence globally through an extensive international branch network described in the table below;
Country Status Opened Branches
AFRICA
Kenya Branch Operation 1956 5 Mauritius Branch Operation 1964 4 Seychelles Branch Operation 1976 1 Sweden Branch Operation 1982 1
ASIA
Bangladesh Branch Operation 1976 2 Fiji Islands Branch Operation 1991 1 Maldives Branch Operation 1976 1 Singapore Branch Operation/OBU 1971 1 Sri Lanka Branch Operation 1951 3 Karachi EPZ Branch Operation 1983 1
MIDDLE EAST
Bahrain Branch Operation /OBU 1969 3
EUROPE
UK Branch Operation 1961 6
USA Branch Operation 1971 1
Operational Structure
HBL is one of the largest commercial bank of Pakistan. It accounts for a substantial share (20%) of the total commercial banking market in Pakistan with a network of 1,705 domestic branches; 55 overseas branches in 26 countries spread over Europe, the Middle East, Far East, Asia, Africa and the United States; 3 HBL wholly owned Subsidiaries namely Habib Bank Financial Services (PVT) LTD. Karachi, Habib Finance International LTD (Hong Kong) and Habib Finance Australia Ltd. – Sydney; 2 Joint Ventures namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative offices in Iran and Egypt.
Ownership Structure
Shareholder Percentage (%)
State Bank of Pakistan 92.24 Islamic Republic of Pakistan 1.30 State Life Insurance Corp. of Pakistan 0.23
Other Public Bodies 0.05
Outstanding Shares (1,217,849,500) 100
National and International events of HBL 1951 HBL opened the first of 3 branches in Sri Lanka. 1952 HBL established Habib Bank (Overseas).
1961 HBL opened the first of what would become 6 branches in the UK. 1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut. 1966 HBL opened the first of 8 branches in the UAE.
1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HB’s branch in Aden is nationalized.
1971 HBL opened an OBU in Singapore and a branch in New York.
1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani bank.
1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a branch in the Maldives.
1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul. 1992 In Nepal HBL acquired 20% of Himalayan Bank.
1995 HBL established a representative office in Cairo.
1990s HBL established Habib Finance (Australia), and Habib Finance International Limited, Hong Kong.
2000 HBL established Habib Canadian Bank.
2003 HBL received permission to open a branch in Afghanistan.
2004 On February 26, the Government of Pakistan handed over management control of Habib Bank to AKFED.
2008 Best Bank of Pakistan, Most innovative global trade finance and Buzziest Brands
2009 The best emerging market bank in Pakistan and Among top 500 Brands 2010 HBL Wins the best emerging market banks award in Pakistan
HRM is the process of recruiting, training, appraising, compensating employees and attending to their labor relations, health, safety and fairness concerns. Personnel are the key department in any organization, so in the case with HBL Personnel department has to care all the important activities.
It is engaged in the process of hiring, firing, training, development and all other related activities are carried out. Human resource department is also engaged in process of designing and evaluating the jobs and determining a pay structure for the jobs.
Structure
The HRM department plays an important role in value of any company. HBL has very active and one of the best HR department in Pakistan as well as worldwide. The structure is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-Clerical employees.
Purpose
The main objective of this project is to analyze a HRM department of a limited company from various aspects. In recruitment process first of all planning session is occurred, in planning session it is determined that which section HBL will have to fill and how to fill. If there is a vacancy of executive job then succession planning is done for filling that vacant place. Human resource department is also engaged in process of designing and evaluating the jobs and determining a pay structure for the jobs.
HR manual contains five processes 1. Selecting and Recruiting 2. Training and Development 3. Performance Appraisal 4. Compensation
5. Employee relation
The recruitment and selection process starts with employment planning. This process of deciding what positions the firm will have to fill, and how to fill them. Personnel or employment planning embraces all future positions, from maintenance clerk to CEO.
Selecting and recruiting process according to HBL
The diagram below represents the process on which HBL’s selection is based. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team.
Analysis of positions and requirement
After planning it is analyzed that which position is going to be filled and the requirement is analyze by job analysis.
Identify candidates
HBL identifies its candidates by developing the criteria of job description and job specification and acting upon these criteria job vacancy ads are spread through different Medias like newspapers and internet.
HBL uses outside sources for recruitment which are
a) Advertising
1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc) 2. Trade and professional journals (Aurora Magazine)
3. Internet job sites (rozee.pk) b) Outside sources of candidates:
1. Sidat Hyder Morched Association works for outsourcing for HBL. 2. College recruitment
3. Employee referrals 4. Walk-ins
Finding internal candidates
1. Job Posting
2. Rehiring former employees Prescreening and short listing
Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board.
After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume.
Test/ interview
In this process short listed candidates are called for test and interview according to nature of their applied jobs. There is different types of interview includes structure as well as unstructured but it’s prefer to be structure and most of the ogranisation usually follow the structure interview. On the hand, there are also casual test which are aptitude, intelligence and mental ability questions.
Selection interview is conducted for short listed candidates. A selection interview is the procedure designed to predict future job performance on the basis of applicant’s oral responses to oral inquiries.
Formats used in selection interview a) Structured/Directed
b) Unstructured/Non directed Modes of Interview
a) Penal interview
An interview in which a group of interviewers questions the applicant.
b) Structured sequential interview
An interview in which the applicant is interviewed sequentially by several persons; each rates the applicant on a standard form.
Types of questions a) Situational
A series of job-related questions that focus on how the candidate would behave in a given situation.
b) Job related
A series of job-related questions that focus on relevant past job-related behaviors. These types of questions are asked from those candidates who have past experience of job.
c) Stress
An interview in which the interviewer seeks to make the applicant uncomfortable with occasionally rude questions that supposedly to spot sensitive applicants and those with low or high stress tolerance. These sorts of questions are asked according to high designation of candidate.
Organizational performance always depends in part on subordinates having the right skills and attributes. Keep in view this point HBL tries its level best to hire highly skilled and suitable employee for each job. For judging these skills HBL conducted some tests of employees on the basis of
a) Reliability b) Test validity
The consistency of scores obtained by the same person when retested with the identical or equivalent tests is called reliability and the accuracy with which a test and interview what it purports to measure or fulfills the function it was designed to fill is referred as validity.
Types of test
Generally two types of tests are taken in HBL
a) Tests of Cognitive ability b) Physical tests
o Cognitive test abilities consists of
1. Intelligence Tests
Tests of general intellectual abilities that measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability are intelligence tests.
2. Aptitude tests
Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability are aptitude tests.
o Tests of physical abilities
Tests that measure static strength, dynamic strength, body coordination.
HBL adopts recruitment process as
Entry Level Programs
HBL’s Entry-Level Programs are structured to ensure that you will quickly assume responsibility for concrete tasks and important projects. Rotational assignments across different business units provide a comprehensive. Entry level position in HBL includes management trainees, management associates and cash officers. For recruiting on entry level position on entry level position HBL assigned an agency to advertise the position and shortlist the candidates the agency takes following steps
i. Campus recruitment
Human resource department’s representatives visit campuses of reputable universities to identify and select the talentHBL is proud of its ability to nurture individuals and empower them to hone their talents. HBL size gives itself the unique ability to provide fast growth and significant responsibility early on in a career with multiple avenues to reach the top. As part of HBL’s human resource strategy, HBL visits various universities across the country to induct & groom fresh business graduates every year. Enthusiastic and talented youth form the backbone of its banking operations and are nurtured to become future leaders at HBL. We are proud of our ability to nurture individuals and empower them to hone their talents.
functions, including Finance, Marketing, Operations, Information Technology and Human Resources.
ii. Advertising in newspapers
The recruiting agency first advertise the vacancy in leading newspapers like Daily Dawn, Daily Jang with predetermined job description and job specification with the guidelines to apply usually the applications are collected on the web based system this advertisement usually have ten days time to submit the application for the job and the bank name is not shown by the agency.
iii. Sorting of application and responding applicants
After the last date of the submission of applications the agency starts sorting applications and giving invitation to the candidates which are short listed to the test with the venue, date and time of test.
Conducting test
On the particular date test is conducted and successful candidates are called for first interview. iv. Interview
Now the bank itself conduct interview of the candidates short listed by the agency and in interview the bank examine the skills and abilities of the candidates to meet the job requirement which is the basic principle of any hiring. After taking first interview short listed candidates are called for the final interview and after this interview they are told to wait for the banks response.
v. Offer Letter
Finally the selected candidates are given offer letter which is consist of the job terms and conditions including remuneration and other benefits attached with the particular position provided by the bank.
Experienced Level Program
HBL recruits experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. HBL’s dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities.
Senior positions are filled in two ways i. Internally
Whenever there is any position vacant in the bank and human resource department wants it to fill internally in this case human resource department post the job on the internal job posting display which is accessible to all employees of the bank through the mail.
ii. Interview
Interviews are conducted for these positions as well when the last date passed for the submission of application and then employee are recruited on the new position for which the application was processed. The current line manager recommend employees to apply for the internal job without recommendation of current line manager the applications are not accepted.
iii. Externally
Senior level positions are also filled externally in which the candidates in the industry who has the experience the of the same position or have the ability to perform job nicely are offered for these positions following steps are taken
iv. Contact management by human resource department
Human resource department of the bank keep in touch with the good workers in the industry and try to hire those people who can be beneficial for the bank as employee. v. Advertisement
Senior level positions are also filled by advertising. Skill test is usually omitted & candidates are judged in interviews. Finally a candidate is selected to fill the position.
Rehiring Former employees
It is an internal hiring source. Rehiring the former employees is the process in which HBL rehires the former employees. But this process is practiced very rarely.
Final Selection
After going through all the processes the best candidates according to HBL’s selection boards are selected.
Just after final selection and before starting of training process orientation is conducted for selected employees in orientation new employees are provided with basic background information about the HBL the basic contents of successful orientation are
o Information on employee benefits
o Personnel policies
o The daily routine
o Company organization and operations
Finally HRM is the process of recruiting, training, appraising, compensating employees and attending to their labor relations, health, safety and fairness concerns. Personnel are the key department in any organization, so in the case with HBL Personnel department has to care all the important activities.
It is engaged in the process of hiring, firing, training, development and all other related activities are carried out. Human resource department is also engaged in process of designing and evaluating the jobs and determining a pay structure for the jobs.
The HRM department plays an important role in value of any company. HBL has very active and one of the best HR department in Pakistan as well as worldwide. The structure is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-Clerical employees.
2. Training and development
Training is the process of teaching new employees the basic skills they need to perform their jobs and development is result of that training. There are different steps which are followed to train as well as development of the fresh and experienced candidates to raise the productivity of the organisation.
For training and developing HBL follows five steps process of training and development
Instructional design: Produce the training program content, including workbooks, exercises, and activities.
Validation: Presenting (trying out) the training to a small representative audience. Implement the program: Actually training the targeted employee group.
Evaluation: Assesses the program’s successes or failures. Task analysis
In this area a detailed study of a job to identify the specific skills required, especially for new employees are analyzed.
Performance analysis
After analyze the main tasks required in performing jobs it is verified that there is a performance deficiency and determining whether that deficiency should be corrected through training or through some other means (such as transferring the employee). If there is found some deficiency in performing job then training is highly recommended to recover deficiencies.
Training methods used by HBL:
On-the-job Training Off-the-job Training Apprenticeship Training Informal learning Effective lectures On-the-job Training
Having a person learn a job by actually doing the job is OJT. Methods of OJT are
– Coaching or understudy
– Job rotation
– Special assignments
It is the OJT method in which employee is coached and taught by profession that how to do the job in order to meet HBL’s goals and objectives. At managerial level the trainee works directly with a senior manager or with the person he or she is to replace; the latter is responsible for the trainee’s coaching. It is done at all levels of job. New employees are trained through coaching and old employees are also trained through this method like when some new innovation is introduced.
Job Rotation
Moving a trainee from department to department to broaden his or her experience and identify strong and weak points. Job rotation is usually done at managerial level. HBL’s Manager Associate (MA) program is used for job rotation training.
Special Assignments
Special assignments are also given to employees for special training. These assignments are actually related to tasks within the branch by achieving those tasks assigned by trainer, employee get training.
Action Learning
Management trainees are allowed to work full-time analyzing and solving problems in other departments. This OJT method is just for managerial level employees. Special case studies are given to employees which contains some dilemma about banking sector.
Off-the-job Training
It is the method which is opposite to the OJT. In this method employee does not get training at his/her work place. This method of training is only for managerial level employees. Off-the-job training methods are
Special case studies are given to employees which contains some dilemma about banking sector. By solving those case study problems employee gets training to take bold and effective decision in crucial situations.
Outside seminars: HBL encourages its employees to participate in the seminars arranged by banking sectors not just in the Pakistan but also beyond the boarders. By participating in outside seminars employee gets authentic knowledge about the new horizons of banking sector which is useful for HBL and makes it leading bank in Pakistan.
Apprenticeship Training
A structured process by which employees become skilled workers through a combination of classroom instruction and on-the-job training. It is actually combination of OJT and lectures delivered to employees. It may be for both levels of managerial and fresh employee. In this method employee is first given the lecture about his/her job and after that implementation of lecture in practical field is observed.
Informal Learning
The majority of what employees learn on the job they learn through informal means of performing their jobs on a daily basis. Special case studies are given to employees which contains some dilemma about banking sector. By solving those case study problems employee gets training to take bold and effective decision in crucial situations. These lectures are delivered to new employees as well as senior level employees.
Effective Lectures
Lectures about jobs are also delivered. These lectures are delivered to new employees as well as senior level employees and managerial level too. In these lectures employees are prepared for facing new challenges in the banking sectors and also told them how to achieve those challenges.
Succession Planning
increasing skills. In order to achieve management development, succession planning is done. Succession planning is a process through which senior-level openings are planned for and eventually filled. The main purposes of succession planning are Anticipate management needs, Review firm’s management skills inventory, Create replacement charts, Begin management development. HBL’s Management Trainee (MT) program deals with succession planning. MT is defined in the following section of Training and developing methods.
Training and development programs at HBL
HBL uses following programs for training and development
Management Trainee Management associate Cash officers
Internships Management Trainee
HBL’s Management Trainee (MT) program looks for highly motivated individuals who exhibit the potential to excel as future leaders. The program is geared towards providing challenging work assignments complemented by a learning component for select individuals from reputable universities. At HBL, the MT program offers extensive interactive classroom training, on the job rotations and personal mentoring.
Management associate
HBL’s Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. It provides accelerated development opportunities across HBL’s branch network of Retail, Corporate & Commercial banking.
managers. The objective of the program is to realize potential and translate the experience into a successful banking career.
Cash officers
HBL’s Cash Officers Program catapults successful candidates to the front lines of the bank. Candidates in this program are the bank’s ambassadors and must have exemplary skills in dealing with clients. The program involves an extensive one-month training period based on branch banking operations before placement in the branches. Energetic and focused graduates from HEC recognized institutions with good communication and interpersonal skills qualify for HBL’s Cash Officers Program.
Before being placed at HBL branches, these individuals must exhibit a proven ability to add value and act as agents of change. The objective of the program is to realize potential and translate the experience into a successful banking career.
Internships
HBL’s Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. Through the program, internees can support their career goals by using the internship as a launching pad for creating contacts with professionals in the field and identifying their own competencies to build a successful career with HBL. The objective of the program is to realize potential and translate the experience into a successful banking career.
3. Performance Management and appraisal
Evaluating an employee’s current and past performance relative to its performance standards is called performance appraisal.
A process that consolidates goal settings, performance appraisal, and development into a single common system to ensure that employee’s performance is according to company’s aims is called performance management.
HBL’s performance management and reward systems ensure that goals are met in an effective and efficient manner. HBL defines a clear path for you to contribute to the organization’s overall goals, peppered with regular reviews and feedback to help you gauge your progress. At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will accelerate to reflect your input. HBL generally uses BARS (Behaviorally anchored rating scale) it is an appraisal method that uses quantified scale with specific narrative examples of good and poor performance.
Performance Appraisal form of HBL
HBL’s performance appraisal form contains two sheets, one is FORM B2 and other is FORM B3. FORM B2 contains appraisal for Clerical staff at branch or Field Offices there are two main headings Area/factors and level of achievement points. Level of achievement point contains five points ratings A (4), B (3), C (2), D (0-1) and N/A. AREA/factors contains five kind of factors which are
i. A-Productivity
ii. B-Individual \attributes iii. C-Technology
iv. D-Customer Service v. E-Personal
Each area is further categorized in different factors.
Area A-Productivity contains 1. Job knowledge
2. TD clearing/Bills Ledger Posting 3. Timely Lodgment of Clearing 4. Followed Return unpaid cheques 5. Nothing of Stop Payment Instruction 6. Volume of Work Handled
8. Willingness & Ability to work with other units/people 9. Ability to write Effectively
10. Adoptability of new assignments
11. Deposit Mobilization /saving/current CPDC etc 12. Number of fresh account arranged
13. Reduction in customer complaint 14. Hajj application target
15. Timely Balancing of branch ledger/books etc
16. Accuracy in counting/cash handling & counting speed 17. Receiving of payments of utilities
18. Dispatch of requisite statements 19. Maintenance of guns in order 20. Zero theft
21. Delivery of letter/Dak in time 22. Quality of work
23. Speed of work
24. Filing and record keeping 25. Typing/data entry speed 26. Typing/data entry accuracy
Each factor is marked against level of achievement and in the end total points scored is written in the specific box. Also the signatures of appraisee and appraiser are taken.
B-Individual Attributes contains
1. Professional/technical knowledge & competency 2. Initiative (eagerness to learn, enlarge knowledge) 3. Reaction to responsibility
9. Performing under pressure
10. Ability to work without supervision 11. Willing to work after office hours C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail D-Customer contains
1. Courtesy to Customer 2. Rapport with customer
3. Creative response to customer needs
4. Business sense (maximum revenue/ minimum cost) E-Personal contains
1. Health & energy 2. Appearance 3. Integrity & loyalty 4. Grooming
5. Manner of speech 6. Attitude
7. Intelligence 8. Leave record FORM B3
This form contains two big boxes. First box is about Development Plan/ Supervisor comments. In this box supervisor gives comments about appraisee strengths and further appraisee’s development needs (need to improve academic & professional qualification).
reviewed by reviewer and reviewer gives its comments too, but it is not necessary. After it final acceptance of appraisee is also taken along with signatures.
Following is some brief detail about appraisal areas
A-Productivity
Productivity is actually about the performance of employee in the clerical field. It indicates that how much effectively and efficiently an employee performs its duty and how much employee is committed with the achievement of organizational goals and objective. Following factors of Productivity are defined briefly;
Job knowledge: It is first and basic factor of productivity. This factor shows that how much employee has awareness about his/her job.
TD clearing/Bill ledger posting: This productive factor indicates the ability of employee about ledger posting of HBL. His shows how much an employee is expert and clear in indicating or posting of ledger regularly.
Timely Lodgment of clearing: This is the job in which the employee of HBL is to present the cheques of other banks, which are given by customers for depositing in their accounts in the State Bank before 10 o’clock. In this assessment it is determined whether employee is punctual in presenting cheques to State Bank in the specific time.
Follow return unpaid cheques: In this job the employee is to return the unpaid cheques to the bank before 3 pm which are rejected by State Bank due to some incompleteness like absence of signatures, inefficient money in the account of customers or other reasons cause refusal of cheques by State Bank.
In performance appraisal it is assessed that whether employee is fulfilling his job well or not and on the basis of his performance he is given points.
payment and also feed this information in the computer for database record in order to restrict misuse of the lost cheques.
Volume of work handled: In this assessment it is noted that how much volume of task or work is being handled by employee and on the basis of volume of work handled the employee gets points of achievement against the block in appraisal form.
Accuracy & attention to detail: In this job it is indicated that how much an employee is attentive and accurate in noting down the job whether he/she is performing at desired level or not.
Willingness and ability to work with other people/unit: In this section it is noted that how much the employee is willing and how much he/she has the ability and quality to perform well in the group of people or unit and it is determined is he/she is able to perform in the group or not if a group task or assignment is given.
Ability to write effectively: In this assessment it is noted that how much employee has effective skills of writing which matters in reporting or hand written application.
Adoptability of new assignments: In this job it is determined how much employee is able adopt new assignments related to his/her job.
Does he/she have ability to adopt new challenges in his/her job?
Deposit Mobilization/saving/current CPDC etc: In this factor it is assessed that how much the employee is responsible for depositing certificates of saving, current and CPDC (Crore Pati Deposit Certificate) purchased by customers.
Number of fresh account arranged: In this job the employee is to arrange new accounts by feed the data in the database system and issuing cheques books.
In this assessment it is appraised that how much the employee has arranged newly opened accounts and on the basis of number the employee is granted with grade on the appraisal sheet.
Hajj application target: This job is related with Islamic Banking section of HBL. Each employee is given with the target of submission Hajj application. On the basis of submitted target Hajj application employee gets point ratings on appraisal form.
Timely balancing of Branch Ledger/books: In this job employee has to balance the branch ledger on the daily basis.
On the basis of balancing of ledger in time the employee is given grade points on appraisal sheet.
Accuracy in counting/cash handling & Counting speed: This determines that how much employee is able to count or handle the cash efficiently and how fast cash is counted by the employee.
Dispatch of requisite statements: In the bank the employee of related job is to dispatch the balanced Ledger/Books, financial statements and number of accounts before authority of branch on monthly basis. While appraising employee it is defined that how much he/she is efficient and punctual in his/her job.
Maintenance of Guns in Order: In this assessment it is determined that how much the employee is active in performing the order of his/her head. The obedience of the employee to his/her head in the bank task is counted in this assessment.
Zero Theft: In assessment the employee is assessed according to handling of his/her honesty in his/her job. It is counted that how much he/she has been committed with theft in performing job.
Delivery of Letter/Dak in time: This job is about the deliverer of letter/Dak to the one bank to other banks, one branch to other branches of HBL and dispatch of cheques to State Bank. The employee is graded with points according to punctuality in delivery in the appraisal form.
Quality of work: In this assessment the employee is given with grade points according to quality of his/her performance in his/her specific job.
Filing and record keeping: In this job the employee is to file and record the data of customer for database. According to effectiveness of record keep employee gets points in appraisal form.
Typing/Data entry speed: This is about computerized record keeping. In this factor it is assessed that how much the employee has speed in typing data.
Typing/Data entry accuracy: In record keeping it is noted that how much accurate the employee is in typing data for database.
B-Individual Attributes
This area of factor is about the employee’s attribute or properties in performing job.
Followings are factors of individual attributes;
Professional/technical knowledge & competency: In this attribute it is checked that how much the employee has professional skills about his/her job and how much he/she is competent has technical knowledge about his/her job in the bank.
Initiative (eagerness to learn, enlarge knowledge): In this factor it is noted that how much employee is eager to learn new thing about job and how much he/she is interested in enlarging knowledge of job. Initiative factor is very important in job field cause initiate new task in the field is good attribute of professional employee.
Reaction to responsibility: In this attribute it is assessed that how the employee reacts when some responsibility is given to him, it is noted whether he/she reacts warmly and professionally or considers new responsibility as a burden.
Sense of responsibility: in this attribute it is assessed that how the employee takes the responsibility whether takes it professionally and serious or carelessly.
Oral Communication Ability: In this factor it is assessed that how much employee has ability to communicate orally with the customers and head. Speaking skills are counted in this appraisal.
Sorting Notes: In this factor the ability of sorting and handling of currency notes are judged. It is assessed that whether employee is sorting notes according to sequence.
Cash excess/shortage situation: Cash handling is noted in this factor. It is a negative appraisal. Some time employee gives or receives more or less amount by customers, if he/she gives more than real amount then he/she has to compensate this money from his/her own pocket.
Performing under pressure: In this factor the performance of employee is assessed under pressure situation. It is checked that how much he/she is capable and confident to perform under pressure circumstances.
Ability to work without supervision: In this factor it is checked that how much the employee is able to perform his/her duty efficiently without supervision and it is also assessed that whether supervisor has to keep eye on his/her to get the work one.
Willing to work after office hours: In this factor it is noted that how much employee is dedicated towards his/her job even after office hours.
C-Technology
This is the area of appraisal in which the capability of using of technology of employee is assessed. Followings are major factors of area of technology
Knowledge of computer: The knowledge of using of computer is counted in this factor.
Knowledge of e-mail & internet: The knowledge of internet and sending/receiving is assessed in this factor of technology area.
D-Customer Service
This is the area of appraisal in which the motivational and dedicated level of employee toward customer service is assessed. Followings are factors of this area;
Rapport with customer: In this factor it is assessed that whether employee cashes the cheques of customer within time or he/she makes customers wait due to his/her personal gossips etc.
Creative response to customer’s needs: In this factor it is judged that how creatively and professionally the employee responses to customer’s needs regarding banking system.
Business sense: This factor determines the sense of employee regarding business that whether he/she knows about economic terms and their uses.
E- Personal
This is the area in which personality of employee is evaluated. Factors of this area are as following;
Health & Energy: In this factor of personal area physical and mental health of employee is evaluated and also the use energy of performing in job.
Appearance: In this factor the appearance of employee is counted. The dress code and manner of dressing is assessed.
Integrity and Loyalty: In this factor the loyalty and integrity of employee is assessed. The dedication and commitment of employee while performing duty is counted. Honesty and faithfulness with job and company is also assessed.
Grooming: In this factor the development and grooming of employee’s personality is counted. Manner or Speech: In this factor of personality the manner of speech or manner of talking to others are assessed. Manner of speech should be polite and understandable.
Attitude: In this factor the employee gets point on the basis of positive and professional attitude in his/her personal life.
Intelligence: In this factor of personality the intelligence of employee is evaluated.
Therefore, evaluating an employee’s current and past performance relative to its performance standards is called performance appraisal.
A process that consolidates goal settings, performance appraisal, and development into a single common system to ensure that employee’s performance is according to company’s aims is called performance management.
HBL’s performance management and reward systems ensure that goals are met in an effective and efficient manner. HBL defines a clear path for you to contribute to the organization’s overall goals, peppered with regular reviews and feedback to help you gauge your progress. At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will accelerate to reflect your input. HBL generally uses BARS (Behaviorally anchored rating scale) it is an appraisal method that uses quantified scale with specific narrative examples of good and poor performance.
4. Compensation
The salaries, rewards, bonuses, and incentives on the basis of job and performances are compensations.
Compensation at HBL
HBL’s focus is on attracting, developing and retaining the best in the business by offering market driven compensation and benefits packages. HBL’s compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness. Annual benchmarking exercises are conducted to stay abreast with industry standards. According to performance each employ gets benefits and compensation. Time does not matter only performance matters at HBL. Employees are paid in two forms
Direct payments Indirect payments
Indirect financial payments: This mode of payment is not related to cash payments like medical, insurance, residence, car, car fuel etc.
At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will accelerate to reflect your input. HBL’s performance management and reward systems ensure that goals are met in an effective and efficient manner. We define a clear path for you to contribute to the organization’s overall goals, peppered with regular reviews and feedback to help you gauge your progress.
Our focus is on attracting, developing and retaining the best in the business by offering market driven compensation and benefits packages. Our compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness. Annual benchmarking exercises are conducted to stay abreast with industry standards.
5. Employee relation
Employee Relations involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals who arise out of or affect work situations.
The environment at HBL is cultural, ethical and challenging that that encourages creativity and commitment among employees. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, HBL enables its employees to achieve their professional goals while keeping in synch with the bank’s overall objectives.
HBL believes in two skills for employee relation
Interpersonal communication Conflict management
Interpersonal communication skill
interaction. If these interactions are positive, they can help create the right workplace climate, attitudes, beliefs and behaviors. Keeping in view these all points interpersonal HBL emphasizes on strong interpersonal communication skill for effective accomplishment of goals.
Conflict management
In HBL the second skill for managers to leverage, is conflict management. It is actually conflict resolving approach. Learning to leverage this skill helps in resolving employee relations issues quickly and effectively, and creates greater satisfaction with the workgroup. In this skill manager let his/her subordinates to speak and say whatever they feel during working with manager. Manager cares employees emotions and feelings.
Strengths weakness of the following policies has been discussed with respect to their brief concept where it’s necessary.
1) Selecting and Recruiting 2) Training and development
3) Employee services, safety, health and welfare 4) Manpower planning
5) Salary administration 6) Industrial relation
7) Systems of communication 8) Negotiating with union
9) Terms and conditions of employment, etc. 10) Constituents of Industrial Relations in Islam
Some of the strengths and weakness regarding recruiting and selecting are as discussed as below: Strengths
High qualified management. Good recruitment procedure Excellent HR training centre Computer literacy programs Safety training programs Weakness
Time consuming recruitment procedure Extra expenditures on training
Stakeholders can affect the company policies Difficult to recruit all workers of the company Difficult to recruit candidates of different categories 2. Training & Development
Training and development in the workplace provides real time exposure to any changes, as opposed to off-site classroom or homework training. It also allows your company to have direct company oversight of the training and development methods used and immediate input into content. Some of the strengths and weakness regarding training and development are as discussed as below:
Strengths:
It offers the ability to pinpoint employee developmental needs with satisfaction of those needs then interwoven into current processes and workflow.
Training and development result in better outcomes, employees tend to display a greater sense of ownership and pride in their work.
Training and development in the workplace means familiar territory for employees and also familiar surroundings for instructors.
Training and development in the workplace provides real time exposure to any changes, as opposed to off-site classroom or homework training. It also allows your company to have direct company oversight of the training and development methods used and immediate input into content.
Weakness
The procedure which adopted by the HBL to train their employees follow the strict criteria which may affect on the moral of the employees because autocratic rules result the poor performance, therefore, participative approach should be followed.
They train their only at the time of need to maintain the stability which could be meaningless because customer level of satisfaction is much higher than the HBL offering Usually in house training is provided which don’t exposure the mental ability of the
employees.
3. Employees Services Safety, Health & Welfare
HBL is an equal opportunity employer it gives market competitive safety services, health and welfare accommodation. Some of them are highlighted below:
Safety and Security has been a top priority on the attention list. Procedural reviews and periodic checks are regularly carried out to ensure safe operations. To preserve environment, against any possible pollution through air, water or solid waste, best available means, methods and equipments are used and heavy plantation has been developed in factory premises Health, safety and health (HSE) is working for the employee safety and health. It provides safe working conditions and environment. The personnel department conducts safety training programs for all employees 2-3 times in a year. The company offers the following safety programs.
Fire fighting First aid training
General awareness about environment
The Environmental Policy (ISO 14001) is spelled out as: HBL Ltd. is committed to continual improvement of its Environmental Management System (EMS) by adoption of appropriate pollution prevention measures and complying with all relevant environmental legislation / regulations through training, teamwork and procedures as implemented from time to time.
HBL gives other benefits as well to its employees which are as follows
Medical Facility
HBL provide medical expenses reimbursement to its staff when they hospitalized and all the consultation and bed charges are born by bank and bank also contribute 80% in medicines. There are some limits of daily hospital charges for each cadre which are communicated to all employees and HBL has all good hospitals on its panel in all big cities to facilities to its staff.
4. Manpower Planning
By Human Resource Planning, we mean that how systematically forecast the future demand for, and supply of, employees. The motto of HBL in this aspect is staffing at the right time with the right people i.e. Human resource Planning was thought of as means for ensuring that right numbers and the right kinds of people were at the right times, So that consumers needs are satisfied.
It is responsibility of HRM Department to forecast the Personnel needs. The main sources to check the personnel needs are forecasting and job analysis. Mostly HRM Department forecast the division of labor but sometimes gives orders each department to forecast the personnel needs and then HR personally perform the job analysis in each department.
HR department makes replacement chart of candidates and prefer internal source of candidates. From internal sources candidates are promote on the basis of qualification and experience. If from internal sources candidates are not available then external sources are used. The selection of candidates from internal or external resources is strictly on merit. The personnel department has its own selection team.
Needs for Employees
New Ventures
Change in technology Workforce factors Source of employment
New Ventures
New ventures also lead to mean changing human resource demands. HBL focus continuously on innovations and new concepts to provide its services to heavy clientele and to compete its competitors.
Change in Technology
Technology changes the way business is done, is difficult to predict, and is difficult to assess. For instance, the concept of new plants creates enormous demand for telemarketing Personnel’s and computer Professionals and we have to cater for the needs of our customers. For this purpose people are hired so that they can carry out the operations.
Work force Factors
The demand of Human Resource is modified by such employee actions as retirements, resignations, termination, deaths and leaves. Right now HBL is not facing any severe problem of attrition or turnover. These inventory documents catalogs each employees skills and abilities, and when there is need of new job, internal employees can go for this job. Personnel manager is responsible for internal job placements. Another internal source is employee referrals.
Strengths
Recruiting yield procedure adopted in order to predict the number of employees which should be hired in future vacancies.
Staff is high equipped with latest skills in order to manage and predict the desired level of employees.
Proper manpower planning helps them to tackle the need of the staff in case of emergency when there’s difficult to get the access to the right person.
Weakness
Recruiting yield pyramid approach help up to limited areas, when different candidates should be required in different field, at that time it turns to break down.
Scatter plot, Trend analysis and ratio analysis avoided which could harm the HBL policy regarding manpower planning.
5. Salary Administration
Salary bills of workers all categories are prepared at personnel office under this section. After the selection of candidates the basic pay is also decided under this section of personnel department. HBL LTD. Is developing an effective and appropriate compensation system is an important part of the HRM process. An effective and appropriate compensation system can help attract and retain competent and talented individuals who can help the organization accomplish its mission and goals. HBL adheres to all laws and regulations of government. For instance, HBL follows Minimum Wage Board Act, Industrial Relations Standing Ordinance, and Workman Compensation Act.
Many organizations uses alternative of Compensation is called skilled based pay system. A pay system that rewards employees for the job skill they can demonstrate. Several factors influence the compensation and benefit packages for different employees. HBL is giving the following compensation and benefit packages to their employees.
The main objectives sought through effective compensation management at HBL are: Compensation needs to be high enough to attract applicants.
Retain present employees.
Compensation management strives for internal and external equity. Comply with legal regulations imposed by government.
Strengths
Handsome salary has been paid to all the employees with respect to their responsibility.
Salary has been pain on the basis of their responsibilities and duties with respect to their rank in the company.
Weakness
Contract based employees are not getting as much as paid to the permanent employees. Therefore, negotiating policy has been followed for them.
6. Industrial Relation
HBL has friendly relations with all other industries. This section of HR Department has monthly contribution of EOBI, social security and education centre. The monthly performance reports are calculated and submitted to the accounts department as per defined procedure. This section has time to time meetings with other internal and external agencies of the country.
Strengths
HBL maintains an excellent and friendly relation with other industries.
It makes the investment in other industries and takes the advantage in developing of industrial policies.
It also takes the guidance in developing the policies through the directors of other industries which ultimately enhance the trust and confident.
Weakness
Most of the relations are with those who’re not in the field of banking sectors.
Relationships are at top level that help to develop the policies but not at operational level which are most important for the implementation of the policies developed by top management.
7. Communication System
Strengths
It is operating a latest programming tool which enables the entire department to stay in connect with each other without any breakdown.
To have communication system with other external agencies the company uses extranet and internet technology.
Weakness
There is a danger of attack of malfunction that could harm the database.
8. Terms and conditions of employment
Terms and conditions of employment are mostly on the basis of job and conditions qualification and experience. However HBL developed the Employment documents handbook. It is different for professional employees and unskilled workers. The following are the four categories.
Regular Probationer Contractual Temporary Casual Strengths
HBL follows the strict policies while recruiting the candidates and take the declaration form from the employee at the time of recruitment that in case of any fraud, employer can take the action.
Cares fully provide references and sign the declaration at the end of Bio-data form otherwise HR department is entitled not to entertain the employee form.
Code of Ethics book is provided to the employees that must follow after joining the employment.
Weakness
Strict policies make the candidate difficulties for arranging the documents.
9. Constituents of Industrial Relations in Islam
contact of an employer is at the time of employment of a worker. Islamic permits the employment of non-Muslims, however certain conditions should be taken into consideration before employing the them.
Overall Strengths and Weakness
1. A skill or capability that enables HBL to conceive and implement strategies.
2. The officers of HBL are considered as one of the most able professionals in the banking world
3. I observed that HBL employees (except annoyed ones) interact with their clients as if they are their personal friends and discuss about their problems as their own.
4. HBL has got a reliable and easy to use internal computer system. 5 . H B L maintained its data properly.
6. HBL has very good security system.
7. HBL is the larger commercial bank in Pakistan with the network of over 1466domestic and international branches.
8. Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest in experience. 9. HBL focuses on consumer banking by lucrative schemes, products and services suiting best to the
wants and demands of the customers.
10. HBL has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank.
11. The band is always on the look to improve its services both to the domestic as well as overseas customers.
12. Human resources development and introduction of new technology towards modern banking.
13. 24 hours cash access and safe payment products for high value transaction. 14. Having potential to encounter the competitive environment in the market.
15. Veteran and experience private management group also involved in other interests like, textile and cement industry.
16. Customer enjoys the services at the residential localities.
Weakness
1. There is week communication system in overall HBL as well as inside the branches. 2. Highest number of branches effecting the proper maintenance and difficulty in providing
same working environment at the each branch
3. Poorer system of recovery of the system is a threat to bankruptcy. 4. Lack of customer feedback
5. Low job satisfaction. 6. Poor ATM’s Service
7. Inconsistency in efficiency and working atmosphere due to the largest of branches.
8. Sense of insecurity in the employees serving at low profitable branches due to the downsizing.
9. Females feel uneasy in an environment among the male workers. 10. Victim of political, legal and socio-cultural pressures
Our Suggestions for betterment of HBL
HBL is Pakistan’s largest bank. It should eliminate the cost of online banking since they charge cost of online transaction or transfer.
HBL is initiator of Tele-banking service which is unique service in Pakistan. Through this service we can get information about our personal account on telephone. Most of times customers find the service operator busy. HBL should increase their tele-banking service centre.
HBL has begun campus recruiting which provides youngsters to come ahead but their campus recruiting process is so slow. They should increase their pace of hiring youngsters as other banks are doing successfully. They should provide more and more opportunities to fresh graduates and masters.
The process of promotion at HBL is slow so they should maximize the promotion process which would be source of motivation for their employees.
QUESTIONAIRE 1. Recruitment & Selection
Q1: What is the current situation of your organization? Are you downsizing or rightsizing? Ans. HBL is not static as it is still growing its branch network. It is not practicing downsizing infact it is hiring new blood for its organization.
Q2: which source you would prefer for recruiting: Internal source or External source
Ans. HBL is preferring its internal sources as the existing employees know the environment and overall structure of HBL.
Q3: What is your recruitment process? Ans. Recruitment process is given below
i. Analysis of position and requirements ii. Identify candidates
iii. Prescreening and short listing iv. Test/ interviews
v. Final selection
Q4: What is the minimum and maximum age limit for different kinds of employees while recruiting them?
Ans. As HBL wants to get rid of its old blood so it is hiring young blood for the organization.
Q5: what method you are using for internal search: Through job posting. Rehiring the persons, which were fired Or Using references of exiting employees like top management.
Ans. HBL has the advantage that his staff is loyal and that is why it is using references of its existing employees like top management.
Q6: What is your policy who applies for a job, which is less than their qualification or requirement?
Ans. They are investing huge amount for hiring young graduates that’s why they do not compromise on qualification and job requirements.
Q7: In which season, you usually recruit employees?
Ans. Autumn is the season in which HBL try to hire employees because most of graduation results declared during this season.