Final Management Project (1)

8/2/2019 Final Management Project (1)

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INTRODUCTION

On 25th of august 1941, Habib Bank inaugurated its operations with the

banks first branch in Bombay (now Mumbai). In 1947 Karachi saw its firstcommercial bank of the newly formed Islamic Republic of Pakistan, when

the bank shifted its head office there. Through out the decades, HBL has

held the mantle of a dynamic leader, by adding values to the lives of its

customers. Today HBL has more than 1,425 branches in all over Pakistan

and present in 26 countries across five continents. At present The Agha

Khan Fund for Economic Development (A.K.F.E.D.) has 51% of HBLs

shares while the other 49% of its shares are in the hands of the Government.

TYPE OF ORGANISATION

Habib Bank is basically a service industry. It was HBL that introduced

products such as credit cards, ATMs, Traveler Cheques, etc., to the Pakistani

market. Habib Bank caters the needs of millions with its quality products

and services.

ORGANISATIONAL LEVELS

Habib Bank has the following organizational levels:

Top Managers Middle Managers

Front Line Managers

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TOP MANAGERS:

The top managers include:

1. The Chairman2. The Board Of Directors

3. The President (CEO)

MIDDLE MANAGERS:The middle managers include:

1. The S.E.V.P (Senior Executive Vice President)

2. The M.M.C. (Manager Management Committee)3. The Regional Chief

FRONT LINE MANAGERS: The front line managers include:

1. Manager Operations

2. Manager credits3. Branch Managers

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DIFFERENT ROLES PERFORMED BY

DIFFERENT LEVELS OF MANAGEMENT

TOP MANAGEMENT:

The top management performs the interpersonal roles to illustrate the

Chairman plays the role of a figurehead while the president (Mr.Zakir

Mahmood) plays the role of a leader who motivates and directs etc.

MIDDLE MANAGEMENT:

The middle management plays the role of a bridge between the top

management and the front line or lower management. It makes sure that the

decisions made by the top management are properly implemented. It also

monitors the ongoing activities in the organization and does Training Need

Analysis (T.N.A.)

LOWER MANAGEMENT:

The lower level management or the front line management, which include

branch managers, officers, assistants, subordinates etc., act upon the plans

made by the top management and the middle management and serve the

customers and thus increase the productivity and profit of the organization.

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MANAGEMENT SKILLS

HABIB BANK has different skills as service industry. Their skills are

efficient and effective from upper level to lower level management.

UPPER LEVEL MANAGEMENT SKILLS

The top management (C.E.O, President, G.M) is highly experienced and has

vast knowledge. The top management is elected according to their

qualification, experience and past performance. It is related to internal and

external environment. The top management plans and the lower level

management conduct the implementation.

MIDDLE LEVEL MANAGEMENT SKILLS

It consists of regional management level. The managers have skills to

supervise and lead the organization to success. Regional means its branches,

which are 23 over the country. The managers implement the plans and also

organize the way to achieve the objectives and goals of organization.

LOWER LEVEL MANAGEMENT SKILLS

Lower management is qualified, has some experience and has knowledge

about the work, which they are required to perform. They are related to

technical work and have knowledge about the procedures. The bank has

engineering, computer and accounting.

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MANAGEMENT SYSTEM

The management system has responsibility to make decisions in order to

accomplish the banks goals. Bank has hierarchy in making decisions. Mostimportant (financial, economic etc.) decisions are made by top management.

They consider the alternatives available and the proposals from the branch

managers. Choose the best alternative and ask their managers to implement

the decision process.

The middle management has responsiveness to implement and the lower

level management uses their technical skills.

Higher-level management has closed system to manage their goals. They

have a meeting and plan their future development. It is an open system for

lower and middle level management.

HBLS MISSION

To be recognized as the leading financial institution of Pakistan.

A dynamic international bank in the emerging markets.

Providing our customers with a premium set of innovative products

and services.

Granting superior value to our stakeholders shareholders, customers

and employees.

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CORPORATE SOCIAL RESPONSIBILITY

Bank is interested in doing social work keeping their interest and profit in

their mind. It has sports division which includes their hockey team, cricket

team and table tennis teams etc. Bank has done charity funds and helping

the poor and deserving people. Bank provides the long terms and short-term

loans.

BANKING IN VILLAGES

Habib bank has their branches in villages. Instead of thinking their profit and

loss, they are continuously working for the poor people. They are facilitating

the villagers and they face enormous problems just for the people benefit.

They have provided the money to the government of sindh for recreating the

I.I chundigar road.

Code of Ethics in Habib Bank Limited

(Moral Values which integrate in Habib Bank)

HBL is firmly grounded with a corporate philosophy that incorporates five

solid values which each individual associated with the bank abides by.

HumilityHBL staff encourages a culture of mutual respect and treat both their

team members and customers with humility and care.

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IntegrityFor the staff, integrity means a synergic approach towards abiding our

core values. United with the force of shared values and integrity, theyform a network of a well-integrated team.

MeritocracyAt every level, from selection to advancement, they have designed a

consistent system of human resource practices, based on objective

criteria throughout all the layers of the organization. They are,

therefore, able to achieve a specific level of performance at everylayer of the organization.

TeamworkHBL team strives to become a cohesive and unified force, to offer the

customer, a level of service beyond his expectations. This force is

derived from participative and collective endeavors, a common set of

goals and a spirit to share the glory and the strength to face failurestogether.

Culture of InnovationWe (Habib Bank Ltd) aim to be proactively responsive to new ideas,

and to respect and reward the agents, leaders and creators of change.

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Objectives of the Bank

i. At Habib Bank, we aim to ensure customer satisfaction by providing

high quality banking services.

ii. Habib bank aims to be proactively responsive to new ideas, and to

respect and reward the agents, leaders and creators of change.

iii. In their quest for excellence, they strive to meet the needs of both their

customers and their employees.

According to the Organization, the top-level management develops

objectives, which are then implemented by the middle level managersand the lower level management works on these objectives to ensure

their fulfillment. So its an ongoing process of creating, implementing

and working of the whole staff to satisfy the consumers and customers

of Habib Bank Ltd. as well as enhancing its image in the global arena.

Importance of Objectives

The Habib Bank Annexe branch HR Manager strived on the need of

objectives by saying that they are the best guides in any organization. They

guide the top management in leading their subordinates towards the goal of

the organization; they help all concerned authorities to enhance the image of

the organization locally and internationally. Not only had that if firmly

established, objectives serve as the stairway to the achievement of the

purpose of organization, which is the very basic reason of its existence.

Another important view conveyed by the Manager was that in anyorganization, objectives must change with the passage of time in accordance

to the changing environment, values, market conditions and others factors

too.

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How Objectives are developed in Habib

Bank

The first thing we were told in this regard was that objectives are definedkeeping in view the present scenario of the state. As mentioned above Habib

Bank considers the environment, values of masses, and the analyzing of

needs of people, as a vital factor in objective development. Launching new

products is more than often considered, and most importantly ideas and

innovations of their competitors are thoroughly analyzed and evaluated

while setting the Organizations objectives.

When asked about how the objectives are developed, we were answered in a

professional manner and every single step was simplified presented to us.

The whole procedure is comprehensively defined as follows:

i. First of all the big bosses analyze the situation of the market whether

its profitable or suffering downfall

ii. Then the needs of the common people as well as the elite class are

determined and considered

iii. Discussions and meetings are regularly held to minimize any risk ofloss to the bank

iv. Another step which is put into practice only when the organization

feels its a much better option is that renowned executives are called

from multinational organizations to evaluate the ideas of the internal

executives and comment and suggest on their progress

v. Lastly after all these evaluations are properly carried out only then the

objectives of the organization are clearly defined

vi. Thats not the end as these objectives are transferred from the top

management to the middle and lower level sectors and every

individual is assigned a specific goal which when accomplished

individually helps as a whole in reaching the main GOAL of the

organization.

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Habib Banks business in the Global

Arena

Habib Bank has more than 68 branches through out the globe. Over 26countries have branches of HBL. Best results come from the Middle Eastern

Countries, U.A.E and U.K. Internationally its aim is to serve the Pakistanis

working abroad. It proves to be a grand link between people who want to

transfer money back home. Habib bank is not looking currently for too much

international involvement, firstly they want to dominate the banking sector

nationally, and then the next step would be to cross international hurdles.

Guidelines for Establishing Objectives

HABIB BANK has considered some of the guidelines on the basis of which

they have developed their objectives. First of all they consider their goal and

their aim on the basis of which they set their objectives. They focus on the

people factor within the bank .Do them ability to achieve the goals? If the

employee works according to their objective, they give him/her a time

period. Employees have the time period to accomplish the objective.

They specify the written objective, which is given to each employee within

the organization. They only consider the people factor as a guideline so they

easily achieve the goals. They kept the international laws in their mind while

establishing the objectives.

Management By Objectives (MBO)

HABIB BANK does not use the MBO factor as such but they believe thattheir management cannot run without objectives. As habit bank is widely

spread into its regions and branches so the task are divided according to the

size of the branch. The main branch calls a meeting in which the managers

from different branches are called with their proposals. Managers proposals

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are recorded and reviewed. Manager is given the task to implement in their

branch.

Rewards are awarded to the selected people who have achieved their set

goals. Rewards are usually are in the form of cash or sometimes they are

encouraged verbally. No promotion is given to those who got late in

achieving the banks objectives. Their alary is detected.

Major task are given to branch managers, which are divided into the subtask.

Subtasks are given to the sub-ordinates. Rewards are awarded to the

employees who have accomplished the task given to them.

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PLANNING IN HABIB BANK

HABIB BANK does make proper planning before starting any project.According to the vice-president of credit department,

Planning is a route, following the route, the goals and objectives of the

bank can easily be achieved.

Two years back, they had a technology problem. Old employees do not

about the usage of computer so their board of directors and CEO sat together

to solve the problem. They

Planned that those employees who can learn the computer, they will beremained as employee, but those who cannot come across with the

technology change, they will be given the golden handshake.

Their purpose of planning is to achieve their goals in a sequential method.

As the technology factor was occurred then they planned to inject the new

blood within the bank that can lead the bank to the success.

Purpose of Planning

For Habib Bank Ltd., planning is a way to handle future challenges and

problems. Planning is primarily done to minimize risks in the business as

well as to capture most of the markets business. HBL also believes in this

theory and it desires to be the leading bank of Pakistan. For this purpose,

planning is mandatory. So the main purpose of planning in the eyes of HBL

is to survive in the future and face the challenges with prepared strategies.

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Advantages of Planning

It creates a co ordination within the employees so they easily implement the

planning. The employees are more focused on the objectives.

Implementation becomes easy and the line staff is well defined about thework. Employee has the clear vision about the goals.

Disadvantages of Planning

He says that there can be a risk factor involved. As they tell about the

planning to their employees if any employee is not loyal to the bank then

he/she realizes the planning to the outsider, then it will be a big blunder forthe bank. Bank can face an unexpected situation for which they did not plan.

Planning Process

Whenever the problem occurs in the bank, a meeting is called in which they

think of the solution of the particular problem. Mangers from the branches

are called in the meeting and they present their proposals for the problem.

The top management usually does the planning. They have planned to

extend the on line banking. They have 350 online branches right now and

thinking to extend it unto 1500. Bank gathers feedback from different

branches. About their progress, gathers the information of the Market trends.

Bank focuses on the customers satisfaction

Role of C.E.O. in Planning

The CEO monitors the whole bank during planning. He controls the bank

whenever it faces a crisis situation. He checks whether the organization is

heading towards the right path or not, more specifically towards the

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achievement of organizations goals. He is involved in all plans of the

organization and in many cases he does the planning all by himself. The

CEO has the authority to accept or reject the proposals of their managers. He

interferes in difficult circumstances and holds the authority to keep a check

on the progress of the employees to know where the organization is going.

Sound planning always comes from competent C.E.O.

Definition of Plans in HBL

HBL defines plans as the ways to achieve the goals of the bank. It states that

plans are different methods and techniques, which an organization adopts in

order to accomplish its mission.

Planning ToolsHabit bank uses the forecasting tool. They predict the future environment

and their plans will affect the market. They focus on the valuable customers

and facilitate them more rather than their others customers. They invest in

those industries where they see the charm or profit. If they give the loans tothe customers with whom they are not familiar or do not know him/her

financially so it will be a wrong decision.

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Decisions in Habib Bank

In HBL, decision is regarded as the best option chosen. A decision is madewhen more than one alternative are available. HBL tries to make marvelous

decisions and achieve its objectives.

Types of Decisions

There are two types of decisions as seen by HBL:

I. Programmed

II. Non programmed

Programmed Decisions:

These include decisions regarding projects; customer services rules and

many more. As in undergoing projects, everything is pre-defined and clear,

the bank has decided well before time what will be the finance of the project,

where it will be implemented and how long will it take to start. Same is the

case for customer service providing as to which customers should be dealt

and which not.

All these decisions stand in the queue of programmed decisions.

Non-Programmed Decisions:

These are the decisions, which must be taken in exceptional cases, critical

situations or against the established principles of the organization. They arise

when the bank faces a situation where it has to review its rules or

programmed decisions. The top-level management of the bank, sometimes

with the coordination of middle management, makes these types of

decisions.

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Scope of Decisions

Habib bank has divided the decision-making authority into its committees,

regions and departments. The scope of decisions depends upon the nature of

it. Finance related decision is taken by the finance committee of Board ofDirectors; an organizational development related decision is taken by the HR

and organizational development committee and so on. In this way, there are

different sectors of decision-making.

On the whole, the Board of Directors makes most of the decisions, which are

then flowed to the bottom. As far as routine and regular decisions are

concerned, the middle management is able to take decisions on their own.

The Decision Making Process

The process of decision-making in HBL mainly resides on the top-level

management. The Board of Directors takes all major and crucial decisions,

which are then implemented at all levels. There is no tradition of concerning

the employees when making decisions. However the middle management is

sometimes called in conferences to present their ideas and views. TheChairman still remains authoritative of which decision to take.

When a decision is finally taken, all levels are informed about it and tasks

are distributed.

Decision Making Tools

In HBL, there are no specific decision making tools implemented. The mostimportant factor when making a decision is said to be research, analysis of

the concerned sector, as well as historical records of the department. These

are the main considerations, which are followed when a decision is to be

made. Otherwise there is not any decision making tool used at HBL.

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Strategic Planning

Habib Bank refers to Strategic planning as:

Long range planning that focuses on the Organization as a whole.

It means that those plans that are not restricted to anyone area of the

organization; they are aimed at achieving things listed in the mission

statement.

The Directors at Habib Bank Limited are responsible for making sound

strategies.

Habib Bank limited has always had the vision of the future while making

any strategies. Their strategies are focused on a time period of 8-10 years,

which they keep on reviewing from time to time. These strategies keep them

on their mission and helps employees stay more dedicated in contributing to

organizational goals. Any Strategy formed is aimed at guaranteeing

customer satisfaction & incrimination in profit of the Organization.

Habib Bank has always led the Banking sector in Pakistan and will keep on

doing so with the help of distinguished strategies. Habib Bank has qualified

personnel who assist in strategic planning.

Strategy Management Process

The People at Habib Bank always keep in consideration that a particular

strategy is beneficial for the organization as a whole or not. They keep the

cost incurred on the strategy in mind and decide whether they should

continue the same pattern or not.

Habib Bank has a broad mission statement and they try their best to keep on

the track lead by that statement. HBL also has the record of avoiding undue

risks while working at a strategy. Sometimes they have to give up theirshort-term advances, while looking at the big picture. They are keen to

develop a Sound organizational Strategy that caters all aspects of the

corporation and are willing to tackle any hindrances in its way. HBL regards

Strategic Management Process as the way to boundless success. This process

consists of in-depth study of the current scenarios of the market.

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Impact of Environmental Analysis on Strategy

Formulation

With out having a complete analysis of the surrounding environment, a

meaningful organizational strategy can never be formed. Habib Bank has to

keep all the factors in mind before jumping to any conclusions. The

regulations laid down by State Bank, the regulations laid down by IMF,

World Bank e.t.c. Habib Bank also has to consider the economic condition

of the country, whether any long-term investments would be feasible or not.

Cultural and Social issues are not left behind while making a concrete

organizational strategy. Currently Habib Bank wants to promote Online

banking which will result in efficient money transfer in the future, butfactors such as lack of access to Internet are restricting from that to happen.

Habib Bank also has to consider what its opponents are providing to the

people, because if they were lacking way behind them, it would result in

total disaster. Habib Bank also keeps a close eye on the satisfaction levels

of the customers as well as the employees.

The Bank has always tried to fight of international competition, trying to

prove as a trendsetter, which has always asked a lot from the organization.

Strategy Formulation Tools

Habib Bank values its previous records to give a clear picture of the future. By the help of

those crucial records, forecasting of the future becomes easier. In Habib

Bank, forecasting has proved to be the most useful Strategic formulation

tool.

Forecasting also requires constant attention, because it may be so that the

prediction went totally wrong resulting in overall failure.

Other tools like SWOT analysis, Business Portfolio analysis etc are not thatcommonly used in Habib Bank. Credit Commission uses SWOT analysis,

but in making organizational strategies, it is not used. It also depends on the

Current scenario, which tool would prove to be most beneficial. The aim of

any tool used is the same, to ensure organizational success.

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Insight into Tactical Planning

Tactical planning is relatively short term in nature than strategic planning.

Here the plans are focused on short term objectives and are reviews of the

strategic plans. Organizational goals are kept in close consideration andmiddle managers are directly involved in the process. These plans are

restricted to a time period of nearly a year. The planners notice day-to-Day

happenings as well.

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IMPORTANCE OF ORGANIZING

Organizing, according to HBL is a very significant factor in an

organizations success or even survival. No organization can survive in the

modern era without a proper organizing theory and process. It is one of very

basic needs of modern business.

According to Habib Bank Limited, organizing is a process similar to

planning, the only difference being that planning is setting goals while

organizing is using all the best available resources to achieve those goals.

HBL strives for organizing every kind of its resources in the optimal way so

that the achievement of its objectives becomes an easy task.

The Organizing Process in HBL

HBL believes in efficient and effective organizing. Its main focus is on

generating good resources in every field and utilizing them in the best favor

of the Bank. The process of organizing runs from the top level i.e. from

Board of Directors to the grass root level of the organization. The steps of

organizing in HBL are summarized below:

First the chairman of board of directors presents his views on how to

distribute the main jobs. The main objective of the bank is kept in

mind at this, infect at every step.

Then the Board of Directors decides mutually with the Chairman how

to divide major tasks into small managerial activities.

These individual tasks are passed on to the middle management.These managers now set directives and tell individuals what they need

to do.

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In the end, there is a continuous check on whether the implemented

allocations are paying off or not. In this way, the bank sticks to its

high standards of quality services and customer satisfactions.

Organizing Subsystem

In

put

(Par

tofthe

organ

izations

in

put)

People

Capitol

Rawmaterial

Machines

(technology)

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Output

Sound

organizational

strategyleadsto

achievementof

organizational

objectives

Organizing

Process

Mainobjectiveofthebank

Boardofdirectorsdivides

tasksintomanageria

l

activities

Middlemanagerstell

individualswhattodo

Continuouscheckon

the

organizingstrategy


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Responsibility, Authority and Delegation

Responsibility refers to those tasks and activities that are supposed to be

performed by an individual. The act of accepting a job means that the person

is obligated to a superior for the accomplishment of his job activities. In

Habib Bank Ltd., responsibilities are well defined and the appropriate

authority is also given to every individual. This is carried out to ensure that

when a person is assigned a job, he doesnt have to run to his supervisor

again and again for grantment of authority. The person is given all the

authority necessary for performing that job. This leads to a balance between

jobs assigned and tasks done. Also in HBL, sometimes it becomes crucial

for the supervisor to delegate an additional task to his subordinates, which iscalled delegation. Hence there is a systematic approach in this regard. After

delegating authority, the supervisor holds the right to question the

subordinate of his performance and how he used his authority.

Responsibility:

In the bank, job description is equally defined and elaborated, but verbally

only. Jobs are clearly divided, managers are told what they are required to doand responsibilities are accepted. However all these processes are done

without paperwork. When individuals were asked about these matters, they

too replied in the same way. So it can be said that although verbally, but

every individual is informed of his duties.

Authority:

In HBL, authority is given according to the responsibility and delegation

given. Authority primarily includes line and functional authority whereas

staff authority does exist in the organization but in an informal manner. It

means that there are no boundaries set about staff authority, coworkers and

individuals at the same level are allowed to guide each other and help in

solving their problems.

Delegation:

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Delegation exists in the bank because of its huge structure. Different tasks

are delegated to subordinates and they perform them with usual concern.

HUMAN RESOURCES IN HABIB BANK

LTD.

Human resource of any organization plays a pivotal role as the productivity

in an organization is determined by how human resource co-ordinates &

inter relates the management system resources& use them for the

management system goal attainment. The human resource system in Habib

bank limited involves the following sequential steps:

1. Recruitment

2. Selection

3. Training

4. Performance appraisal

RECRUITMENT

In the recruitment process the human resource department does the job

analysis, which is aimed at determining the job description & job

specification.

Two sources are used by human resource to fill a position. They are:

1. Sources inside the organization

2. Sources outside the organization

SOURCES INSIDE THE ORGANIZATION

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Habib bank doesnt maintain a human resource inventory system, instead it

circulates memos & places notices on the notice board within the

organization so that employees who think they are eligible for the job apply

for it.

SOURCES OUTSIDE THE ORGANZATION

Habib bank limited also uses the sources outside the organization to hire

substantial employees. These sources include:

Employment agencies

Competitors

Educational institutions

Certain publications

SELECTION

The second major step involved in providing human resource for the

organization (HBL) is selection. In the selection process there are two thingsthat applicants must pass in order to be hired. These are:

1. Aptitude test

2. Interview

TRAINING

After recruitment & selection the training department of Habib BankLimited does the training analysis to develop qualities in human resource

that will enable them to be more productive. In the training need analysis the

training program is designed, administered & finally evaluated. In Habib

Bank Limited training is essentially done through lectures. On job training is

also done in Habib Bank Limited so that the employees keep up pace with

the rapid growing world.

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PERFORMANCE APPRAISAL

Even after the recruitment, selection & training it is necessary to maximize

employees productivity by evaluating their contribution & past productivity

towards attaining organizational objectives. This is done by performance

appraisal. Habib Bank Limited strictly maintains the performance appraisal

system. The performance appraisal in Habib Bank Limited is given to

employees in the form of critical-form Essay.

ORGANIZATIONAL CHANGE IN HABIB

BANK LIMITED

The major organizational change (structural change) in Habib Bank Limited

took place in 1997 when the whole bank was divided in to two groups,

namely Corporate Banking Group and Retail Banking Group. In the same

year Habib Bank Limited also announced the golden shake hands in which

there were many layoffs (people change).

MANAGING CHANGE

The management committee of Habib Bank Limited made organizational

changes in 1997 to increase productivity and to keep up with new

technological advancements. They divided the whole organization in two

groups so that each group becomes more focused and hence increase

productivity. Secondly they announced thousands of layoffs so that they can

hire fresh blood in their place, youngsters who are more at ease with new

technology as they are not resistant to change. The management knew that tomanage this change was an uphill task but if they would remain committed

they would be able to manage the change and now after nine years the

consequences of the organizational changes made in 1997 tell us that those

changes have made the organization more profitable and that the

management of Habib Bank Limited has been successful in managing the

change.

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FUNDAMENTALS OF

INFLUENCING AND

COMMUNICATION

In order to guide the activities of organizational members in apposite

direction influencing and communication play pivotal roles. In Habib Bank

Limited influencing involves management activities such as motivating,

leading and considering groups. All these activities are inter-related.

Managers at H.B.L. accomplish these influencing activities by

communicating with the staff. So, essentially sound communication system

plays a vital role in Habib Banks successful endeavors.

INTERPERSONAL COMMUNICATION

Interpersonal communication in Habib Bank Limited is of two types:

Formal organizational communication

Informal organizational communication

FORMAL ORGANIZATIONAL COMMUNICATION:

The formal organizational communication in Habib Bank Limited is a blend

of downward organizational communication, upward organizational

communication and lateral organizational communication that is whyalthough a huge organization H.B.L. has a sound communication system

with in the organization.

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INFORMAL ORGANIZATIONAL COMMUNICATION

Although the management of Habib Bank Limited encourages formal

communication, at the same time it also endorses informal communication.It is used occasionally with in the organization. Top executives do not

influence it. Habib Bank Limited also has a grapevine; it is a single strand

grapevine that distorts the actual message.

MOTIVATION PROCESS

The management committee of H.B.L gives a lot of importance to

motivation since it is motivation that causes the behavior in organizational

members that ensures the accomplishment of a certain objective. The

employees at H.B.L. dont only get intrinsic rewards but are also given

extrinsic rewards (promotions, increase in salary, cash rewards e.t.c.)

THEORIES OF MOTIVATION

Essentially in Habib Bank Limited the management practices the Need-goal

theory, which says, that felt needs cause human behavior.

MOTIVATING ORGANIZATIONAL MEMBERS

In order to motivate its employees the H.B.L. management uses various

theories. These theories include Managerial Communications, Job Design

(job rotation, job enlargement, and job enrichment), Behavior modification,

monetary incentives, non-monetary incentives and Likerts management

systems (system 3).

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Leader V/S Manager

According to HBL, leading emphasizes mainly on behavioral issues of the

members of an organization whereas management involves both behavioralas well as non-behavioral issues. In this sense, therefore HBL says that a

manager has to monitor and coordinate many more activities than a leader

does.

One of the HR Manager of the organization replied to this question that a

leader can be a manager but the other way round is not possible. Also that

management has a very vast area of dealing as compared to that of a leader.

Hence the management of HBL does believe in the fact that they are two

different things.

Leader Behavior

Habib Bank Ltd. believes that the behavior of a leader should be of concern,

involvement and care towards the subordinates. He must be able to motivate

them to perform above expectations whenever required. He must possessqualities like nice behavior, politeness, and he has the skills for successfully

bringing any change in the attitude of people inside the bank. The leader

must possess a morally high personality. He should be willing to give

sacrifices of his own interests in the benefit of the bank.

The leader in an organization must be fully informed of all the happenings

of the market and must keep his organization equivalent to that. Not only

that, the personal knowledge of, relevant as well as irrelevant matters is an

important factor in the eyes of the bank and it matters a lot for the bank.

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Women as Leaders

When we asked this controversial question from the HR manager, he replied

that there are a few women leaders in the bank as in the SEVP and GroupExecutive committee. The HBL team really wants to see women progressing

and achieving high position in the society. The bank has allocated a small

percentage of jobs for women. The bank believes in women leaders but

according to the management, one of major factors that dont let women step

out of their houses and perform extraordinary tasks is our cultural values and

customs. These customs literally dont let women step up and revolutionize

the world. In short the bank recognizes the fact that women can be leaders

and in some exceptional cases they even perform better than men.

GROUPS IN HBL

There are mainly two kinds of groups prevailing in the bank. One is the

formal group, which is formed by the management, which follows the

organization chart structure for processes and tasks. In this group, the

communication is also formal and there are very little personal relationshipsdeveloping in this kind of group.

On the other hand is the informal group. According to the workers this group

is usually beneficial for the new comers and inexperienced employees

because they can acquire the help of the experienced veterans and solve their

problems. These kinds of groups also prove significant when some orders or

policies are to be brought in the bank. The news is given to an individual and

he discusses it with his colleagues. In this way, the reactions of the

employees suggest whether to float that policy or not.

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Managing Work Groups

At HBL, work groups are organized and managed by the supervisors of the

groups. The first thing considered is the type of work the group is

performing; the supervision is done in accordance to this work. Then thegroup members are told what they are supposed to do and every individual is

assigned a specific task. This is done considering his area of expertise. When

the group starts working, the supervisor keeps a check on its performance in

collaboration to the banks established objectives. The HBL uses this

strategy to manage its work groups.

Understanding People

Attitude and perception of the employees of Habib Bank Ltd. is a concern of

the related manager. The branch managers mainly do this task because they

are responsible for the performance of the workers of their branches. Hence

they are also the ones to help people change their perception and attitudes.

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TYPES OF CONTROL

In HBL the main types of control are:

Pre control

Concurrent control

Feedback control

The bank performs the precontrol as it sets cost limits, areas to invest and

stuff like that.

The concurrent control is obviously performed as a monitoring process ofthe ongoing activities.

As far as the feedback is concerned the bank collects the project or problem

related feedback from the environmental surveys, researches, questioning

customers and even employees suggestions.

Information & Technology

The bank uses desktop pcs for accessing data, records and files. The

computers look to be in good condition and working well. The bank keeps

the records of its employees in the computers too. All these data volumes

become massive so there is regular upgrading of all the systems. Addition to

this, all the printers, scanners and other machines are well maintained and

are taken care by the management.

The bank has a huge line of ATMs where touch screens are used. These are

the technologies used by the bank.

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CONCLUSION

Our suggestions To Habib Bank

We ourselves being students of management have come to a conclusion that

Habib Bank plans way too much for the future. They plan for around 10

years at once. This behavior may restrict them from gaining advantage from

the changing situation and environment. We have also studied that

Nothing is permanent but change

On this statement we think that they should limit their plans to a period of 2-

3 years which will result in adapting to change in trends, consumer needs

and competitors e.t.c.

We also came to know that Habib bank has over 1500 branches, and their

co-ordination has become a problem. Our suggestion is that, if they want to

utilize their resources to the extreme they should try and make their structure

more flat. It will result in quicker means of communication betweendifferent levels of organizational members and also in quicker means of

achieving goals.

Overall the Organization has progressed a lot in the recent past and will be

one of the leading banks in Pakistan in the years to come. The bank has done

a lot to maintain its positive image in the eyes of its stakeholders which

always results in gain in monetary terms or otherwise. We also think that the

bank in current hands will reach new and greater heights and will be as a

role model for all the upcoming banks in Pakistan.

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Documents

Final Management Project (1)