UBL

ACKNOWLEDGMENT

Praise is to Allah Almighty, the one testing us all at all times and

making decisions about what we don’t know and can’t know.

Working on this report, appeared to be a great experience to us. It added a lot to

our knowledge while we were working on it. If we say that this report is one of our

memorable experiences in student life, then it would not be wrong.

We owe deep gratitude to Ma’am Ayesha Adnan for stimulating our creative

abilities by assigning this project to us. She broadened our horizons by allowing us

to do this project, without whose kind attention and interest, it would be difficult

for us to complete this report.

We are also highly obliged to Habib Bank Limited for their assistance and

guidance. And at the last but not the least, most important of them, are our

parents, we all thanks them for their prayers and patience for letting us do all the

work by ourselves.

TABLE OF CONTENTS

1

Page

No.

1. Acknowledgement 1

2. Executive Summary 6

3. Purpose of Project 7

4. Brief Overview of Habib Bank Limited 7

5. HBL Introduction 8

a) Mission Statement

b) Vision

c) Objectives Of HBL

d) HBL History

8

8

8

9

6. HBL Culture 11

7. HBL Working Environment 11

8. HR Measuring Method 12

9. Code Of Ethics 12

10. HR Functions 13

10.1 Organization Chart 13

a) Employment

b) Training and development

14

14

c) Performance Appraisal 15

d) Compensations and Benefits 16

e) Employee relation 16

JAHAN KHUWAB WAHAN HBL

2

Interpersonal communication

Conflict management

17

17

11. Discrimination or Harassment 18

12. Equal Employment Opportunity 18

13. Drug- Free Work Place 19

14. SWOT Analysis Of HBL 19

a) Strengths

b) Weaknesses

c) Opportunities

d) Threats

19

21

21

22

15. Analysis Of Organizational Structure 23

a) Centralized Decision Making

b) Downward Communication

c) Chain of Command

d) Authority and Responsibility

e) Delegation

23

24

24

24

25

17. Succession Planning 25

a) Management Trainee

b) Management Associatec) Cash Officers

e) Internships

26

26

27

27

18. Job Analysis 28

a)The Interview for job analysis 28


3

b) Questionnaire29

19. Quantitative Job Analysis Techniques 29

a) The position analysis questionnaire

(PAQ)

b) The Department of Labor (DOL)

procedure

c) Job description

d) Job specifications

e) Job Evaluation

29

29

29

30

30

20. Sources For Recruitment 31

a) Internal Recruitment Sources

b) External Recruitment Sources

31

31

21. Selection Process 33

a) Analysis Of Positions And Requirement

b) Identify Candidates

c) Prescreening and short listing

d) Test/ interview

e) Final Selection

34

34

35

35

37

22. HBL Role In Orientation 38

23. Critical Evaluation of HR Functions 38

24. Our Suggestions For Betterment Of HBL 41

25. References 42


4


5

EXECUTIVE SUMMARY

Habib Bank Limited is one of the banks playing a very important role in

the economic development of Pakistan. It’s providing high quality services,

manage customer experience efficiently, have comparative advantage due

to its innovative technology and provide high profit to its stakeholder.

In order to maintain and improve its services in the competitive market HBL

Human Resource Department plays a very important role. You will find in

this report the complete HR function of HBL. The Vision, Mission and

Strategic goal of HBL what are the methods followed by HBL for analyzing

and evaluating its Jobs. How HBL recruit and select new employees. The

methods used by HBL training and developing new skills in their employees.

The methods used for performance appraisal of its job incumbents.

Compensations and benefits provided by HBL to its employees and some

other HR Functions.

PURPOSE OF THIS PROJECT


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The main purpose of this project is to maintain the Human Resource Manual

of Habib Bank Limited. It provides a brief overview of the organization

and all the ways, strategies and alternatives mainly used by Human

Resource Department of HBL.

BRIEF OVERVIEW OF HBL

Habib Bank Limited commonly referred to as "HBL" and head-quartered

in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The

bank has a network of 1425 branches in Pakistan and 55 branches

worldwide. It has a domestic market share of over 40%. It continues to

dominate the commercial banking sector with a major market share in

inward foreign remittances (55%) and loans to small industries, traders and

farmers. Overseas, it has operations in the following countries:

Afganistan, Australia, Bahrain, Bangladesh, Belgium, Canada, China,

France, Hong Kong, Iran, Kenya, Lebanon, Maldives, Nepal, Netherlands,

Nigeria, Oman, Singapore, Sri Lanka, Turkey, UAE, UK & USA.

HABIB BANK LIMITED INTRODUCTION


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A.MISSION STATEMENT OF HBL

“To be recognized as the leading financial institution of Pakistan and a

dynamic international bank in the emerging markets, providing our

customers with a premium set of innovative products and services,

and granting superior value to our stakeholders – shareholders,

customers and employees.”

B.HBL VISION

“Enabling people to advance with confidence and

success”

C.OBJECTIVES OF HBL

Following are some of the main objectives of HBL.

To earn profit for the Bank itself and for its shareholders.

To promote and boost up business sector inside the country.

To provide employment opportunities to people.

To help in development and industrialization of the country.

To provide loan and advances to help out in self employment schemes.

D. HBL HISTORY

HBL was incorporated on 25th August 1941 and operated in the

private sector until its nationalization in 1974. HBL has been JAHAN KHUWAB WAHAN HBL

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approved for privatization and the privatization commission has

selected a Financial Advisor to prepare a comprehensive plan and

assist in the sale process. The government has appointed a

professional management team to restructure the bank and to recover

and clean its doubtful and classified portfolio. The HBL Board of

Directors of are:

Sultan Ali Allana Chairman

Ahmed Jawad Director

Sajid Zahid Director

Yasin Malik Director

Mushtaq Malik Director

Moez Jamal Director

R. Zakir Mahmood President & CEO

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 Asia, Africa.


9

http://www.akdn.org/akfed

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. HBL due to its innovative corporate culture wins their

customer trust. HBL is running a corporate website to provide information

and customer services which is:

www.hbl.com

HBL CULTURE

Habib Bank Limited culture is the personality of the organization.

Culture is comprised of the assumptions, values, norms and tangible

signs (artifacts) of organization members and their behaviors. The

organizational culture of HBL is that it always provides profit to its

stakeholder and never misrepresents its financial reports and will never

do any unethical act which harms its client and competitor. The


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employees of HBL will always be helping and friendly with its customers.

The norms of HBL are it always follows the Laws of country and maintain

its goodwill.

HBL WORKING ENVIRONMENT

The working/organization environment of HBL is very sophisticated.

Environment is very friendly due to group coordination. Employees can

easily communicate horizontally and vertically which help to achieve its

goals and objectives. Employees have to follow formal code of ethics of

Habib Bank Limited


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HR MEASURING METHOD

Habib Bank Limited uses Scorecard Approach to measure the

effectiveness and efficiency of HR department. HBL follow the seven

steps to measure its HR department. First HBL define its business

strategy (discussed above). Second its outline the company’s value chain

activates (activities which create value for customers and related

supporting activities). Then it outlines what organizational outcomes

(goals and targets) the bank has to achieve. Then it evaluates the

workforce required to achieve the goals. After that HBL devise its HR

policies and practices (what new training is required?). Then it designs

the HR scorecard and periodically evaluates the measurement system.

CODE OF ETHICS

“A code of ethics is a formal statement that acts as a guide for making

decisions and acting within an organization.”

HBL works for code of ethics for the implementation of ethical business

effectively and efficiently.


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HR FUNCTIONS

ORGANIZATION CHART

A chart defines the line of authority in an organization and its

departmentation. It is a sort of visual presentation of the organizational

structure. It specifies the duties and responsibilities of the personnel of the

organization. The Organizational chart of HBL is given below.

A.Employment

Recruitment is the initial attraction and screening of the supply of

prospective human resources available to fill a position.JAHAN KHUWAB WAHAN HBL

13

Chairman

President

Board of Directors

SEVP

International Operations

SEVP Corporate Banking & Treasury

SEVP Retail Banking & Information Technology

SEVP Finance, Audit & Administration

SEVP Asset Remedial Management

SEVP Credit Policy

SEVP Corporate Banking, financial institute & Project

Finance

HBL staff is the key point between customers and the bank crucial to their

success. That’s why HBL has been recruiting high-caliber senior and mid

level professionals to further strengthen the quality of their staff pool. They

are also looking out for managers of tomorrow, recruiting trainees and

probationary officers with potential to shine. These trainees are being put

through specially designed programs at the Bank’s Management

Development Institute to build their skills and shape them into the stars of

the future.

Recent recruitments have been geared towards product specialists and

system specialists and towards improving customer care.

B. 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.

For training and developing HBL follows five steps process of training and

development

Needs analysis: Identify job performance skills needed, assess prospective

trainee’s skills, and develop objectives.

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

Training methods used by HBL:


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On-the-job Training

Off-the-job Training

Apprenticeship Training

Informal learning

Effective lectures

C.PERFORMANCE APPRAISAL

In performance appraisal of employees HBL use Graphic Rating Scale

Method (a scale that lists a number of traits and a range of performance

for each. Employee is then rated by identifying the score that best

describes his or her level of performance for each trait) in which HBL

measure the characteristics and previous performance of employees and

then rank them subsequently.

In the performance process HBL first discuss the job and duties assigned

to the each subordinate in the Groups. After that they compare their

actual performance with the standards which are set by the HBL. Then

the performance reports of subordinates are discussed with them and

make plans if any development is required or not.

D. COMPENSATION & BENEFITS

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


15

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

Direct financial payments: Pay in the form of wages, salaries, incentives,

commissions, and bonuses.

Indirect financial payments: This mode of payment is not related to cash payments

like medical, insurance, residence, car, car fuel etc.

E. 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 which 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


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Conflict management

Interpersonal communication skill: At HBL the first skill for managers to

understand and practice is interpersonal communications, because it is the

foundation for all actions in the workplace and it allows the manager an

opportunity to build relationships with the overall workgroup without alienating

anyone in the work environment. Working with diverse groups of people requires a

tremendous amount of 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 for the emotions and feelings of their

employees.

DISCRIMINATION OR HARASSMENT

Habib bank encourages a work environment where employee differences are

valued and respected. Bank promotes equality of gender, race and religion and

prohibit sexual or any other kind of discrimination, harassment or intimidation

whether committed by or against a supervisor, coworker, customer, vendor or

visitor.


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No employee shall because of race, creed, color, national/ ethical origin,

gender/sex, marital status, sexual preferences, religion, age, or physical disability,

be subjected to any discrimination or to any harassment be another employee of

the bank.

EQUAL EMPLOYMENT OPPORTUNITY

Habib bank limited is an equal opportunity employer in hiring and promotion

practices, benefits and wages. The bank will not tolerate discrimination against

any person on the basis of race, religion, color, gender, age, citizenship, disability

or any other basis prohibited by law in recruiting, hiring, placement, promotion, or

any other condition of employment.

DRUG- FREE WORK PLACE

Habib bank limited is committed to providing a safe work environment and

fostering the well being and health of its employees. This commitment is

jeopardized when an employee illegally uses drugs or alcohol on the job, come to

work with these substances present in his body, or possess, distribute, or sell

drugs in the workplace.

SWOT ANALYSIS OF HBLJAHAN KHUWAB WAHAN HBL

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HBL is considered to be a very sound bank in the financial circles. The

bank where the customers can safely keep their money as long as they

want.

In SWOT analysis the best strategies accomplish in organization’s mission by:

1. Exploiting opportunities and strengths.

2. Neutralizing its threats and

3. Avoiding its weaknesses.

Following is a list of SWOT of HBL

A. STRENGTHS

A skill or capability that enables HBL to conceive and implement its

strategies.

The officers of HBL are considered as one of the most able professionals in

the banking world.

I observed that HBL employees interact with their clients as if they

are their personal friends and discuss about their problems as their

own.

HBL has got a reliable and easy to use internal computer system. Every

information regarding the transactions in customers’ deposits has been

computerized.

HBL maintained its data properly.

HBL has very good security system.

HBL is the larger commercial bank in Pakistan with the network of over

1439 domestic and international branches.

Being the pioneer of banking in Pakistan, HBL is the oldest and is the richest

in experience.

HBL focuses on consumer banking by lucrative schemes, products and

services suiting best to the wants and demands of the customers.


19

HBL has opened all its branches at commercial areas so that the customers

or clients face no problems in reaching to the bank.

The band is always on the look to improve its services both to the domestic

as well as overseas customers.

Human resources development and introduction of new technology towards

modern banking.

24 hours cash access and safe payment products for high value transaction.

Having potential to encounter the competitive environment in the market.

Veteran and experience private management group also involved in other

interests like, textile and cement industry.

Customer enjoys the services at the residential localities.

B. WEAKNESSES

Highest number of branches effecting the proper maintenance and difficulty

in providing same working environment at the each branch

Poorer system of recovery of the system is a threat to bankruptcy.

Lack of customer feed back.

Low job satisfaction.

Poor ATM’s Service

Inconsistency in efficiency and working atmosphere due to the largest of

branches.

Sense of insecurity in the employees serving at low profitable branches due

to the down sizing.

Females feel uneasy in an environment among the male workers.

Victim of political, legal and socio-cultural pressures

.Lack of professionalism in the branch employees mostly.


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D. OPPORTUNITIES

Huge untapped market potential in consumer banking

In opportunity exist, in form of opening of ladies banking section within the

branch which is entirely a new idea and it will attract customer.

Opportunity for developing value added services combined with corporate

banking relationships, cash management services to large and medium sized

corporate clients.

Growing policies of government on business and commerce sector provide

HBL opportunities to take advantages of these policies to meet efficiently

with the business people to solve their problems with the instant cash and

financing facilities.

Govt. is taking very bold steps to promote IT in Pakistan. HBL has an

opportunity to improve in technology.

Large international network which principally focuses on trade finance with

Pakistan can be utilized to tap trade activities in other markets. In addition,

services such as cross border / offshore financing for corporate customers

can be enhanced.

Customer feedback on different products and accounts has really improved

the bank performance and encourage the atmosphere for other future

policies.

HBL also has an opportunity to expand its new technological advancement

like; tele banking and internet banking facilities in order to serve the

customer more efficiently, specially

E-banking facility is also a new opportunity which is a flourishing business in

foreign countries and can also be here, if HBL takes the initiatives.

Further reduction in intermediation costs possible, with improving

technology.


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Due to efficient and veteran management group, HBL can also improve Ill

and expand its foreign operation successfully.

Habib Bank Limited provide opportunity to utilize its skills and efficiencies

in leasing business.

E. THREATS

An area in the environment that increases the difficulties the organization’s

achieving high performance.

Consolidation in the banking sector resulting in increased competition.

Shortage of trained and specialized staff at lower executive and officer levels

The threat of inconsistency and government policy regarding to business

and economics sectors, specially political and regional situation which

makes the environment uncertain.

Growing global technological advancement.

Strict regulation by government over credit facilities to the customers as Ill

as to meet the prudential.

Loss of confidence of overseas customers due to freezing of accounts.

Facing more competition by foreign banks in the market.

Foreign banks are flourishing in field of consumer financing.

Also the increasing operation of private banks.

Highly attractive and advance services by foreign banks to their customers.

ANALYSIS OF ORGANIZATIONAL STRUCTURE

The purpose of an organizational structure is to help in creating an environment

for human performance. It is then, a management tool and not an end in its own.

Although the structure must define the task to be done, the rules so established

must also be designed in the light of abilities and motivation of the human


22

recourse available. By analyzing the organizational structure of HBL presence of

the following elements can be found in its structure.

A. CENTRALIZED DECISION MAKING

By looking at the organizational structure of HBL would be found that the

structure at HBL is a critical one. All the decisions are made at the top

management level and the subordinates have to obey these decisions. This trend in

the decision making shows a pattern of rigidity in structure of HBL.

B. DOWNWARD COMMUNICATION

Communication is the process by which information is exchanged and understood

by two or more people, usually with the interest to motivate or influence the

behavior of others in the organization. Downward communication is the message

and information sent from top management to subordinates in a downward

direction. Managers can communicate downward to the employees through

speeches, massages in company publications, information leaflets, tucked into pay

envelops material on bulletin boards, policy and procedure mandates.

The same pattern is followed at HBL. No doubt it’s a very traditional approach but

it can create problems because it ignores the receiver of the communication

because the issuer of policies and procedures does not ensure communication. In

reality may the messages communicated downward are not understood perfectly.

C. CHAIN OF COMMAND

The chain of command is an unbroken line of authority that links all persons in an

organization and shows who reports to whom. By analyzing the organizational

structure it can be found that there is a scalar principle followed with in the Bank

because each and every person knows to whom can one report. The authority and


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responsibility for different tasks and duties are different, as well as every one

knows the successive levels of management all the way to the top.

D. AUTHORITY AND RESPONSIBILITY

The chain of command illustrates the authority structure of HBL. Authority is the

formal and legitimate right of the manger to make decisions, issues orders and

allocates resources to achieve organizational desired outcomes. By analyzing the

chain of command of HBL, one can come to the conclusion that, as there is scalar

pattern followed at the organizational setup of HBL therefore it is implied that

everyone in his position knows that what is one’s authority and what is the

responsibility and the authority it allocated.

E. DELEGATION

Delegation is the process, which managers use to transfer the authority and

responsibility to position below in the hierarchy. Most organizations today

encourage managers to delegate authority to the lowest possible level to provide

maximum flexibility to meet customer needs and adapts to the environment. But at

HBL no such system prevails the managers try to keep as much of the authority as

they can and if some authority is delegated it is sure that it will be misused

SUCCESSION PLANNING

It is actually management developing program. Management development is

attempt to improve current or future management performance by imparting

knowledge, changing attitudes, or 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


24

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

A. 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 from senior management to provide a comprehensive learning

experience. The objective of the program is to realize potential and translate the

experience into a successful banking career.

B. 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.


25

During this program, candidates are assigned with challenging business scenarios

to enhance their critical and analytic skills. Another crucial element of the program

ensures that managerial skills are honed and developed. This provides associates

with the expertise required to handle supervisory and administrative tasks that will

result in the development of successful business managers.

C. 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.

D. 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.


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JOB ANALYSIS

The procedure for determining the duties and skill requirements of a job

and the kind of person who should be hired for it is called Job analysis. Job

analysis is every important as job analysis information is used in Selecting

and recruiting, compensation, performance appraisal, training and in

resolving other issues which HBL faces. HBL takes Job analysis services

from Sidat Hyder Morshed Association (SHMA) which is the biggest HR

consulting firm in Pakistan. The methods which are used in collecting job

analysis information are

The interview

Questionnaires

A) THE INTERVIEW FOR JOB ANALYSIS

Interview is a big source in collecting information in the job analysis.

Individual employees, group of employees and supervisors with vast

knowledge about jobs are interviewed. The format of interview is

Structured and unstructured. In structured interview a set of sequence of

questions are followed by interviewers and in unstructured type of

interview the interviewer pursues points of interest as they come up in

response to questions.


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B) QUESTIONNAIRES

In questionnaire the employees solve the fill out questionnaires to describe

their job-related duties and responsibilities. The formats of questionnaires

are either structured or open ended.

QUANTITATIVE JOB ANALYSIS TECHNIQUES

Following methods are also used in job analysis which are called

quantitative job analysis techniques

A) THE POSITION ANALYSIS QUESTIONNAIRE (PAQ)

A questionnaire used to collect quantifiable data concerning the duties and

responsibilities of various jobs.

B) THE DEPARTMENT OF LABOR (DOL) PROCEDURE

A standardized method by which different jobs can be quantitatively rated,

classified, and compared.

C) JOB DESCRIPTION

After getting job analysis information the next step is to describe job

description which contains the points of job identification, job summary,

chain of command relationships), responsibilities and duties, standard

occupational classifications and standard of performance and working

conditions.

D) JOB SPECIFICATIONS


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After formulating job description the next step taken is job specification in

which the traits of employees are defined who are assumed suitable for the

job.

E) JOB EVALUATION

Job Evaluation is a systematic comparison done in order to determine the

worth of one job relative to another

Job evaluation technique used by HBL is Ranking Method in which each job

relative to all other jobs according to its difficulty level like for example job

of supervisor is tougher than the manager working under its supervision.

SOURCES FOR RECRUITMENT

In order to determine the future staff needs Habib Bank Limited uses Ratio

Analysis technique (a Forecasting technique for determining future staff

needs by using ratios between, for example sales volume and number of


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employees needed) in which trend between two trends is determined like

volume of deposits, revenue, new branches etc and number of employees

needed to perform tasks

A) INTERNAL RECRUITMENT SOURCES

In forecasting the supply of inside candidates HBL use Qualifications

inventories (manual or computerized records listing employees education

career and development interests, languages, special skills and so on to be

used in selecting inside candidates for promotion) so in order to replace a

supervisor of a department a person below educated then the current

supervisor will be selected as a new supervisor.

B) EXTERNAL RECRUITMENT SOURCES

External source for hiring employees use by HBL is Succession Planning

(the ongoing process of systematically identifying, assessing and developing

organizational leadership to enhance performance) in which HBL do

analysis on the important or key jobs in the organization, create a list of

competent employees who can fulfill the requirement of that job and then

select the best employee who can perform that job efficiently and affectedly.

The internal sources used by the Habib Bank Limited for hiring candidate

are Advertisement, Head hunter and Word of Mouth. In advertisement

they use different mediums like Television, Newspaper, subscribing the

jobs on Job sites e.g.

www.rozee.pk,

www.monster.com

HBL has hired its own Retained Executive Recruiters/Head hunter

(Executive recruiters are special employment agencies retained by


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http://www.monster.com/

http://www.rozee.pk/

employers to seek out top-management talent for their clients) to find

competent and qualified people for HBL.

But due to some circumstances there is flexibility in hiring the employees

externally and internally for example non availability of required

candidates, lack of time, lack of resources etc.

Usually Habib Bank Limited don’t take Referrals but due to some reason

they do sometime take referrals for example referral form a high command

person, person on referral is qualified and competent etc.

SELECTION PROCESS

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.

SELECTION AND RECRUITING PROCESS IN HBL


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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.

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.

A) 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.

B) 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.


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OUTSIDE SOURCES

HBL uses outside sources for recruitment which are

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)

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

C) 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.

D) TEST/ INTERVIEW


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In this process short listed candidates are called for test and interview

according to nature of their applied jobs.

SELECTION INTERVIEW

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

Structured/Directed

Unstructured/Non directed

MODES OF INTERVIEW

Penal interview

An interview in which a group of interviewers questions the applicant.

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

SITUATIONAL

A series of job-related questions that focus on how the candidate would

behave in a given situation.

JOB RELATED


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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.

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.

PUZZLE QUESTIONS

Recruiters for technical and finance job use questions to pose problems

requiring unique solutions to see how candidates think under pressure.

TESTING

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

Reliability

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.

E) FINAL SELECTION


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After going trough all the processes the best candidates according to HBL’s

selection boards are selected.

HBL ROLE IN ORIENTATION

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

o Safety measures and regulations

CRITICAL EVALUATION OF HR FUNCTIONS

As we review the HR Functions of Habib Bank Limited we asses that HBL

have strengthened its roots in the market place and competing with its


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competitors successfully. It has at a vast level providing online service and

one of the leading banks in e-banking in Pakistan. The Horizontal

organization design of HBL is also the reason of its success because as

compare to vertical organization design horizontal is better due to fast and

easy flow of communication among the employees. HBL is playing a very

significant role in providing employment, Loan etc which increaser the per

capita and living standard of civilians. HBL culture and environment is also

better as we compare to its competitor because there are some ethical

norms, values which are the soul of HBL and the environment is very self-

relieving, relaxing in which employees work their best. While measure the

efficiency and effectiveness of HR department functions Score Card

Approach is best and most frequently used in corporate environment. This

approach easily gives HBL accurate results.

Interview is the most commonly used for job analysis. HBL use interview

and questionnaire to ask for employees what the job entail and then write

the job description and job specification. For job evaluation HBL use

ranking method in one job is compared from another. This is not the best

one as compare to some of its competitors

The recruitment methodology used by HBL is Ratio Analysis in which ratio

between two trend is determined which is one of the best method to

forecast future employee need. HBL use qualification inventories,

advertisement and head hunters to find new talented employees. But HBL

sometimes due to some reason show flexibility to hire new employees in

which low competent employees are hired and referrals is also the reason of

hiring unqualified and not competent people.


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HBL only take Intelligence test (IQ) to analyze new employees for selection

due to which people who are not intelligent but have other skills are not

hired.

For Training and development HBL use different method which are Soft

Skill Functional Training, on-the job Training and class room lectures.

These methods are the main reason for HBL success and Good services.

For performance evaluation of employees HBL use Graphic rating scale

method which promote and give rewards to employees due to their good

traits and performance during the session. HBL conduct performance

appraisal at the end of year so the session is of one year.

The compensation and benefits plan of HBL are also very good as to its

competitors. They provide Paid-time off, Retirement, Disability Insurance,

Education and training programs to their employees. Employees stress

handling during the work is also best HBL handle stress of its employees

like many of its competitor are not be able to handle.

This is all the information that we get from HBL HR manager. The visiting

card of HR manager is also attached.


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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.

At many occasions HBL’s ATM network gets slow and their AT machines

don’t allow for transaction they should renew their ATM links in order to

make their customers avoiding inconvenience.


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REFERENCES

i. https://www.HBL.com.pk/

ii. http://www.wikipedia.org/

iii. www.HBLonline.com

iv. www.google.com.pk


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http://www.google.com.pk/

http://www.ublonline.com/

http://www.wikipedia.org/

https://www.ubl.com.pk/

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