22473881 United Bank Limited UBL HRM

University of Central Punjab

HRM Project

Company:

Section: C

Prepared for Prof. ARJUMAND

Group Members

NamesReg#Mohsin MahmoodL1S07MBAM2006Sana

ShabberL1F06MBAM2198Sara AltafL1F06MBAM2201Amna

RafiqueL1F06MBAM2205Jaweria KhanL1F06MBAM0029Haq

NawazL1S07MBAM2015

Group Members

NamesReg#Mohsin MahmoodL1S07MBAM2006Sana

ShabberL1F06MBAM2198Sara AltafL1F06MBAM2201Amna

RafiqueL1F06MBAM2205Jaweria KhanL1F06MBAM0029Haq

NawazL1S07MBAM2015

“In the name of ALLAH, The Most Merciful, the Most Kind”

Acknowledgement

We are so much grateful to our Prestigious Prof. ARJUMAND who gave us this opportunity to make this Human Resource Development Report of United Bank Limited which enhances our ability in understanding HR functions in corporate world and making report on them.

We would also like to pay our thanks to UBL HR Representative Mrs. Wajiha Ahmad who provide us all the information of Human Resource function of United Bank Limited and all other manager who help us in providing in-depth information on the environment and culture of United Bank Limited.

I (Mohsin Mahmood) also like to thanks my brother Hassan Mahmood for helping me in making this report by arranging the meeting of interviewing HR manager.

2Where you come first

CONTENTS

Page NO.

1. Executive Summary 5

2. History of United Bank Limited 6

3. UBL Introduction 7

A Mission Statement 7

B Vision 7

C Introduction 8

4. SWOT Analysis of UBL 10

5. UBL HR Functions 12

6. UBL HR Objectives 12

7. UBL HR Planning’s and Policies 12

A Attracting Methodology 12

B Organization Chart 13

C Investment in Development & Performance 13

D UBL Structure 14

E Organizational Values 14

F UBL Culture 14

G UBL Working Environment 15

H HR Measuring Method 15

8. Job Analysis 15

A Techniques for Job Analysis 16


9. Job Evaluation 16

10. Recruitment 16

A Internal Recruitment Sources 16

B External Recruitment Sources 17

11. Selection 17

A The Application Form 17

B Written Tests 18

C Performance Exams 18

DSelection Interview

18

12.Training & Development

19

13.Performance Appraisal

19

14.Compensations and Benefits

20

15.Stress Handling

20

16.Critical Evaluation of HR Functions

20

17.Group Conclusion & Recommendation

22

18.Bibliography

23

19.Credits

24

Semi-Structured Questioner


Executive Summary

United 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

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

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

goal of UBL what are the methods followed by UBL for analyzing and evaluating

its Jobs. How UBL recruit and select new employees. The methods used by UBL

training and developing new skills in their employees. The methods used for

performance appraisal of its job incumbents. Compensations and benefits

provided by UBL to its employees and some other HR Functions.

Group suggestions/recommendations for making UBL human resource

management functions more effective


Purpose of This Project

The main purpose of this project is to highlight and to study the Human Resource Department of

United Bank Limited. It provides a brief overview of the organization and all the ways,

strategies and alternatives mainly used by Human Resource Department of UBL.

History of UBL

United Bank Limited was established in November 1959. The bank was sponsored by the

saigol Group of Companies, which were the mainstay of the textile industry in Pakistan at

that time. Within a short period of time, the bank emerged as the third largest in the

country after HBL and NBP. The bank was nationalized in 1974. Later on another bank the

commerce bank limited was merged into UBL.

UBL was the third bank to be offered for privatization. Initially, a Saudi based

financial institution; Bashrahil Group came up with the highest bid for the bank, and

deposited the first tranche for its consideration. However, due to flaws in the transaction,

the SBP cancelled the privatization and took over the bank in 1995.

The Bank’s total income including interest and non-interest income amounted to

RS.4935 million in 1995, its deposits were RS. 109 billion and investments were RS.25

billion in 1995. UBL incurred a loss of RS.724 million in 1995.

In 1996 the management of the bank was changed and by mid 1997 the financial

and administrative discipline was restored. The interference of the government was

eliminated and the non-performing loans recovery was increased and the liquidity position

was brought up to the required level. About RS.6.3 billion were recovered out of which

about RS.5 billion were domestic and of this about Rs. 4.5 billion was recovered in cash.

A right sizing program was initiated as well as an aggressive branch rationalization

strategy by which 203 loss making branches were shut down and profitable ones were

opened in other areas. Surplus staff was removed which amounted to 5416 employees. The

entire audit system was revamped.


United Bank Limited Introduction

A. Mission Statement of UBL :

“To develop and deliver the most innovative

product, manage customer experience, deliver quality

service that contributes to brand strength, establish a

comparative advantage and enhance profitability, providing

value to the stakeholders of bank”

B. UBL Vision :

“To be the premier organizations operating locally &

internationally that provides the complete range of financial

services to all segments under one roof”


C. UBL Introduction :

United Bank Limited was established on November 7, 1959 and incorporated as a Public

Limited Company under Companies Act 1913. The UBL Board of Directors of are:

Highness Shaikh Nahayan Mabarak Al Nahayan Chairman

Sir Mohammed Anwar Pervez OBE Deputy Chairman

Mr. Atif R. Bokhari President & CEO

Mr. Omar Ziad Jaafar Al Askari Director

Mr. Zameer Mohammed Choudrey Director

Mr. Ahmad Waqar Director

Dr. Ashfaque Hasan Khan Director

Mr. Aqeel Ahmed Nasir Company Secretary & Chief Legal

Mr. Abdul Pauf Malik Director

Mr. Ameer Karachi wall Chief Financial Officer

The Bank is currently operating 1056 Branches Domestically and 15 Branches

Overseas (USA, Qatar, UAE, Bahrain and Republic of Yemen). UBL hold 51% of its

total shares other 49% shares are owned by Government. After the privatization of

banking sector in Pakistan UBL implemented its strategies to achieve the comparative

advantage in the Market place. UBL subsidiaries are:

United Bank AG Zurich, Switzerland

United National Bank Limited, UK

UBL Fund Managers Limited

UBL due to its innovative corporate culture wins their customer trust. UBL is

running four websites to provide information and customer services which are:

www.ubl.com.pk ,


http://www.ubl.com.pk/

www.ublonline.com

www.ublfunds.com

www.ublinsurers.com

The depositing services offered by UBL are Business Partner, Rupee Trans A/C,

Basic Banking Account, UBL UniFlex, UBL UniSaver, UBL Profit COD, Term Deposits

Receipts, FCY Savings, and FCY Term Deposits. The loan and card services are UBL

Address, UBL Businessline, UBL Cashline, UBL Drive, UBL Credit Card, UBL Money,

and some other services are UBL netbanking, UBL e-statement, Hamrah, UBL Wallet,

UBL Click n Bank, UBL Click n Remit, UBL TezRaftaar.


http://www.ublinsurers.com/

http://www.ublfunds.com/

http://www.ublonline.com/

SWOT Analysis

i. Strengths :

3rd largest Bank of Pakistan in term of deposits

2nd largest Privatized Bank of Pakistan

UBL offering Customized Products and services aggressively better then

its competitors

Improved operational efficiency as to its past

Courteous Customer service and fast delivery of online and offline

services

Marvelous Image and Reputation of the bank in the eyes of its customers

Extensive Branch network

UBL Product positioning is very effective

UBL target the segment like salaried person, business people and self

employed person

UBL product positioning affect the life style of the people as they help in

improving standard of living

1056 Branches all over Pakistan

Stands in the list of Profitable bank in stock exchange

Largest number of corporate deals by any bank is Pakistan

Overseas Branches

Attractive Salaries and incentives for employees

Personnel of UBL are very well trained. Majority of employees have

many years of experience in banking sector and are an asset for the bank.

ii. Weaknesses :

No standardization in terms of branches some of the branches are very

attractive and most of the branches are not very good like other branches.

In some regions, urban areas of Pakistan service of UBL is not good as

compared to other privatized banks


The application time is also quite lengthy.

UBL is a step behind in using new technology as compared to other banks

All branches need orientation for customer dealing.

Most of the employees are overload with the work and promotion is also

not timely.

Most of employees are experienced and they are not able to deal

customers well, adopt new culture and above all they are unable to use of

new technology like computers.

No separate training center to train their employees

Employees are not well dressed

Workforce is not diverse

Security system in most of the branches is not up to the mark.

iii. Opportunities :

Bank can extend its network in other cities of Pakistan like other 4 remote

cities, it would increase their sales.

Proper orientation of employees in all branches can help them to cope up

with foreign banks

By bringing new technology and modern business processes will bring the

change and increase their profitability

Call centre services should be improved to enhance their network

iv. Threats :

Large and increasing competition.

High operating costs

Lack of huge deposits

HR Functions


Following are the major Human Resource Management Functions of United Bank Limited

6. HR Objectives:

The objectives are to look out for the well being of all employees of the UBL. Provide

leadership and direction to employees of the company. Career Development planning for all

employees of the company. Ensure thorough training of nationwide employees. To provide

individual employees with orientation on the company at the time of joining. To provide

employees with solutions to their problems. Maintaining data records of all employees of

UBL (Human Resources information System). To evaluate and retain those employees who

are assets to the company.

7. UBL HR Planning’s and Policies:

United Bank Limited follows Business-level/Competitive Strategy (competitive strategy

identifies how to build and strength the business’s long-term competitive position in the

market place) because of vast number of its competitor in the market place. UBL analyze it’s

strengths with weakness and opportunities with threats to maintain its comparative

advantage. The competitive advantage of UBL is based on Differentiation. It provides

different online and offline services to win its customer and periodically analyze the

competitive marketplace to enhance its services at a high level.

Attracting Methodology:

Generating required Human Resource policy of UBL is that they attract the current

employees by offering them Promotion, Cash award, increment, bonuses and stock

option so keep up and generate external candidate by offering good salary packages, Career

oriented jobs, Accommodations etc.

Organization Chart:


The organization design of UBL is Horizontal (which has low hierarchical level). There are

different Groups containing 10 to 12 people which are assigned different tasks to work on

each group has its own supervisor who supervise all employees in its group.

Investment in Development & Performance:

UBL invest in HR Development and performance by promoting or giving rewards to those

employees whose performance is better. The performance appraisal of each employee is

conducted annually in UBL.

UBL Structure:


Organizational Values:

•Trust and Integrity

•Respect for people

•Responsible corporate citizens

•Passion for business excellence

•Commitment to total customer’s satisfaction

UBL Culture:

United 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 UBL 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 employees of UBL will always be

helping and friendly with its customers. The norms of UBL are it always follows the Laws of

country and maintain its goodwill.

UBL Working Environment:

The working/organization environment of UBL 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 United Bank Limited

HR Measuring Method:

United Bank Limited uses Scorecard Approach to measure the effectiveness and

efficiency of HR department. UBL follow the seven steps to measure its HR department.

First UBL 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 UBL devise

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

scorecard and periodically evaluates the measurement system.

8. Job Analysis:

Job Analysis is the procedure through which you determine the duties of the position

and the characteristics of the people to hire for them. Job analysis produces information used

for writing job descriptions and job Specifications.

Techniques for Job Analysis:


UBL only use Qualitative Techniques of analyzing jobs. The techniques UBL uses

are Interview and Open-ended Questionnaires. They use interviews in which employees

are ask what the job entails and questionnaires in which employees are asked different

question about what are the activates they perform in job.

9. 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 UBL 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.

10.Recruitment:

In order to determine the future staff needs United 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 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.

Internal Recruitment Sources:

In forecasting the supply of inside candidates UBL 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.


External Recruitment Sources:

External source for hiring employees use by UBL is Succession Planning (the ongoing

process of systematically identifying, assessing and developing organizational leadership to

enhance performance) in which UBL 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 United 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

UBL has hired its own Retained Executive Recruiters/Head hunter (Executive recruiters

are special employment agencies retained by employers to seek out top-management talent for

their clients) to find competent and qualified people for UBL.

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 United 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.

11.Selection:

Selection process of UBL based on Qualification, Previous job experience, Age and

health of candidate.

The Application Form:

For selection process the first step which candidate to be fulfilled is application form, this show

about the candidate’s education, previous performance, prior work history, experience, hobbies


http://www.monster.com/

http://www.rozee.pk/

and health condition? As such, it is extremely critical for his/her continued participation in the

examination process. Before that candidate has to review thoroughly what the Job advertisement

specifies the requirements to qualify for the position. Candidate must meet all the criteria to be

considered for the position; ensure that, otherwise candidate will be wasting his effort in

completing the application.

Written Tests:

Written exams are usually obtained from one of several test construction firms available to them.

These tests are designed to determine level of technical and/or analytical abilities associated with

the particular position for which candidate had applied. Unstructured questionnaire and IQ test

(intelligence test) Test results are sent by mail, usually within 6 working days. If receive a

passing score candidate will be invited to continue in the examination process

Performance Exams:

Test ability to accomplish specific job-related tasks by providing the opportunity to actually

perform them. These tests are scheduled through the Human Resources Department office, with

notification in writing of the date, time, location and duration of the test. Instructions will be

given on the tasks to be completed and then asked to complete them. Individuals with

considerable relevant experience will conduct the evaluations. Safety, quality of work,

adaptability, performance under stress, etc. are evaluated. Specialized Testing

Selection Interview

Once the List of candidate who is capable enough, is established it is sent to the Department(s)

that is hiring to fill a current vacancy. The Department Head is responsible for setting up

Selection Interviews. He/she may interview anyone on the list; The Department Head will be

looking for the candidate with the best qualifications for their particular position.

The candidate who is selected, investigate his/her background and a probationary period before

attaining permanent employment status. Additionally, in accordance with Federal Law, the

candidate is required to provide proof of identity and proof they may legally work.


12.Training & Development:

Training refers to the methods used to give new or present employees the skills they

need to perform their jobs. Development include employee, management, organizational and

career development which develop employees skills, management which enhance executive’s

abilities, organizational cultural development and career development of employees.

Training methods used by United Bank Limited are Soft Skill Functional Training,

On-The Job Training and Class Room lectures.

In soft skill functional training UBL give training to improve personality traits, social

grace, friendliness, personal habits and fluency of language. In On-the job training UBL uses

different method like Coaching or understudy method in which supervisor act as a coach and

teach the trainee to the perform the task on the job and Job rotation method is used by UBL

for those employee who need multi skills to perform the job.

13. Performance Appraisal:

In performance appraisal of employees UBL 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 UBL measure the characteristics and previous performance of employees and then

rank them subsequently.

In the performance process UBL 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 UBL. Then the performance reports of subordinates are

discussed with them and make plans if any development is required or not.


14.Compensations and Benefits:

United Bank Limited provide compensations to its employees in shape of Cost of any

medical Treatment, Cancelled Holidays fees, Repair of vehicle, any injury while doing

job tasks and some other. Employees can claim their compensation if any above case

occurs.

Benefits which are provided by UBL are Paid time off, Retirement, Disability

Insurance, Education and training programs. In Paid time off benefits the employee is

paid for the time he don’t worked duo to vacation, holiday pay and sick pay. Retirement

benefits are in shape of pension, gratuity, provident fund and superannuation fund. In

disability insurance bank provides financial support when an employee becomes injured or ill

and is unable to do his/her job and in education & training programs bank provide different

education & training to their employees to furbish their skill.

15. Stress Handling:

The techniques used by United Bank Limited to handle stress among its employees

are by providing better atmosphere in the office which is neat & clean, Air-conditioned,

peaceful and relaxed so employees can work with their full potential.

Lunch break are also provided to employee to reduce stress among them. This also

creates a relaxed atmosphere because employees can chit chat in that break.

United Bank Limited sometime also arrange excursion tour for their employees to

lessen their workload and fresh their mind for the challenging task ahead them and sometime

send employees on vacation with their families.

16. Critical Evaluation of HR Functions:

As we review the HR Functions of United Bank Limited we asses that UBL have

strengthened its roots in the market place and competing with its 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 UBL 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. UBL is playing a very significant role in providing

employment, Loan etc which increaser the per capita and living standard of civilians. UBL

culture and environment is also better as we compare to its competitor because there are

some ethical norms, values which are the soul of UBL 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 UBL accurate results.

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

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

job specification. For job evaluation UBL 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 UBL is Ratio Analysis in which ratio between

two trend is determined which is one of the best method to forecast future employee

need.UBL use qualification inventories, advertisement and head hunters to find new talented

employees. But UBL 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.

UBL 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 UBL use different method which are Soft Skill

Functional Training, on-the job Training and class room lectures. These methods are the

main reason for UBL success and Good services.

For performance evaluation of employees UBL use Graphic rating scale method

which promote and give rewards to employees due to their good traits and performance


during the session. UBL conduct performance appraisal at the end of year so the session is of

one year.

The compensation and benefits plan of UBL 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 UBL

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 UBL HR manager. The visiting card of

HR manager is also attached.

17. Suggestions/Recommendations :

As we group members analyze the HR function of United Bank Limited are not one

of the best HR function of corporate world. Many of its competitors have better HR function

as compare to UBL Bank. We suggest and recommend that first of all

There should be a development of Assessment Center so that employees should

be train at high level.

Referral should be ignored

We suggest that UBL should used Diversification corporate strategy in which new

and innovating services should lines

UBL should use Participant Diary/Logs and Position analysis Questionnaire

method with their current methods so for writing Job description

UBL should use a combination of Ratio Analysis and Trend Analysis (study of a

firm’s past employment needs over a period of years to predict future needs) for

recruitment.

We recommend UBL should use College Recruiting from honored universities

like UCP.

Panel Interview should be conducted then individual interview

We suggest that UBL should use Paired Comparison Method for performance

appraisal


18.Bibliography

Mrs. Wajiha Ahmed

HR Representative

Regional Head Quarter

3rd Floor, Aftab Center,

30Davis Road, Lahore.

Ph: 042-6033217 -6371093

Email: [email protected]

Web links:

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

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

iii. www.ublonline.com


http://www.ublonline.com/

http://www.wikipedia.org/

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

mailto:[email protected]

Credits

Mohsin Mahmood

Designing and composing of this report and Interviewer of HR manager

Sana Shabber

Data Collector

Sara Altaf

Data Collector

Amna Rafique

Data Collector & composing Helper

Jaweria Khan

Data Collector

Haq Nawaz

Financer and Free flyer


22473881 United Bank Limited UBL HRM

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