Habib Bank (Hbl).

Term Report

On

Habib Bank Limited

Submitted To: Ms. Tayyaba Hussaini

Human Resource Management

Habib Bank Limited

Group Members:

Mohsin H. Alqamari

(MEXN—230529)

Farzan Nazeer

(MEXN—230525)

Syed Ahmed Owais

(MEXN—230541)2007 - 2010 1Hamdard University Students - Batch 2010

Acknowledgement

First of all we are very much thankful to All Mighty Allah who gave us health and ability to analyze and write this report. After that we would like to thank our respected teacher Ms. Tayyaba Hussaini

who gave us this assignment, which provided wonderful opportunities to learn and also opened a different dimension of

thinking.

HBL

thinking.

Last but not the least we would like to thank to human resource In charge- RHQ Karachi Region North, Mr. Mumtaz Ali Zaidi, all staff of HBL their tremendous support, patience and their semi-infinite number of help that was more essential in the completion of this

report.

It is all about teamwork and coordination, that we have been able to achieve our goal. Working professionally and effort from each.

2007 - 2010 2Hamdard University Students - Batch 2010

HBL

EXECUTIVE SUMMARY

The projects with in it self dynamic in nature that kept on changing time to time

and due to its dynamic nature it’s hard to justify any bank & their employees

behavior in the short period, from public to privatization time because to write

words on any bank & their employees about its behavior need a through study

of there people and environment.of there people and environment.

In it we focused on the bank response to its employee and the employee’s

attitude towards the bank. While gathering the information the HR – Policy,

Planning & Implementation Division is the valuable resource to understand

the bank & their employee’s patterns.

The material we have gathered through valuable resources is almost

authenticated towards the organization current scenario. In broadly specking

we have covered all the major functions of Human Resource Department of

HBL.


HBL

The Habib Bank is a leader in Pakistan’s services industry. An extensive network of 1400 domestic branches – the largest in Pakistan – and present in 25 countries across five continents.

This network has enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving

client relationships that form the backbone of the Bank’s operations.operations.

Today, HBL plays a central role in Pakistan’s financial and economic development. It has come a long way from its

modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees.


HBL

Impressed by its initial performance, Quaid-e-Azam Mohammed Ali Jinnah asked the Bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in the

Quaid’s city in 1943 and became a symbol of pride and progress for the people of Pakistan.

Habib Bank has been a pioneer in providing innovative banking services. These have included the installation of the first

mainframe computer in Pakistan followed by the first ATM and more recently, internet banking facilities in all our 1400domestic branches. HBL was the first bank in Pakistan who

launched the credit card in Pakistan in 1960s.


HBL

The Bank’s towering presence in Pakistan’s financial and commercial life has remained unchanged over the decades.

The strength of its brand and image is symbolized by its prominent Head Office building that has dominated

Karachi’s skyline for more than 35 years.

They continue to build on our track record and in our quest They continue to build on our track record and in our quest for excellence they strive to meet the needs of both our

customers and our employees. It was awarded THE BEST BANK IN THE SUBCONTINENT – 2004 by Emerging Markets Publication. At Habib Bank they aim to ensure customer satisfaction by providing high quality banking services. This is made possible by the professionalism of

our employees all of whom are provided with the requisite training and opportunities to enable them to realize their

full potential.


HBL

Our brand identity is the outward expression of what they stand for as an organization. This is summarized in our vision,

mission and is supported by our values.

VISION

“Enabling people to advance with confidence and success”

MISSIONMISSION

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

“To make our customers prosper, our staff excel and create value for shareholders”


HBL

Values

Values are the fundamental principles that define HBL culture and are

brought to life in our attitudes and behavior. It is our values that make

us unique and unmistakable. Our values are.


HBL

Values

Our values are:

� Excellence.

� Integrity.� Integrity.

� Customer Focus.

� Meritocracy.

� Progressiveness.

� Social Commitments.


HBL

Excellence

This is at the core of everything they do.

The markets in which they operate are becoming increasingly competitive, The markets in which they operate are becoming increasingly competitive,

giving our customers an abundance of choice.

Only through being the very best - in terms of the service they offer, their

products and premises - can they hope to be successful and grow.


HBL

Integrity

For them, integrity means a synergic approach towards abiding their core values. United with the force of shared values and integrity,

they form a network of a well-integrated team.

They are the leading bank in Pakistan and their success depends upon trust. Their customers - and society in general - expect them to possess and steadfastly adhere to high moral principles and

professional standards.


HBL

Customer Focus

They understand fully the needs of their customers and adapt their products and services to meet them. They always strive to put the

satisfaction of their customers first.


HBL

Meritocracy

At 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 every therefore, able to achieve a specific level of performance at every

layer of the organization.

They believe in giving opportunities and advantages to their employees on the basis of their ability. They believe in rewarding achievement

and in providing first-class career opportunities for all.


HBL

Progressiveness

They believe in the advancement of society through the adoption of enlightened working practices, innovative new products and

processes, and a spirit of enterprise.


HBL

SOCIAL COMMITMENTS

The Public Relation Division of HBL maintains effective rapport with the general public by communicating the policies and schemes of the bank

through press and electronic media. Besides maintaining close relationship with journalists & advertising agencies, the Division also

receives the visiting dignitaries and delegations from abroad.receives the visiting dignitaries and delegations from abroad.

HBL believes in serving the nation and building the country strong. They are always at the forefront to support noble causes and promote the

social & cultural activities in the country. The Public Relation Division of HBL sponsors various social, cultural and sports events to generate

healthy activities in the society. It also organizes religious programs to uphold the religious tradition of our people. The Division represents the bank at important forums to exchange views on national & international

issues with various organizations to boost the intellectual activities.


HBL

The Organization

HBL is organized along functional lines with core divisions namely:

� Corporate Banking, � International Banking, � Retail Banking, � Consumer Banking, � Global Operations, � Treasury, � Treasury, � Global Treasure, � Audit, � Compliance, � Risk Management, � Commercial & Retail Lending, � Asset Remedial Management (ARM), � Information Technology Group, � Learning & Development and � Human Resources Group.

The Staff strength of the organization is consist of 14,105 permanent employees and 18other totaling 14,123 number.


HBL

Board of Director

The Board of director consists of seven reputable and worthy persons:

� Sultan Ali Allana Chairman


� R. Zakir Mehmood President & CEO� Iain Donald Cheyne Director� Sajid Zahid Director� Mushtaq Malik Director� Ahmed Jawad Director� Yasim Malik Director

HBL

ManagementThe team of management consists of the best of the industry. This main team has 17 members:

� R. Zakir Mehmood President & CEO� Sohail Malik Chief Risk Officer� Sima Kamil Head – Corporate Banking� Nauman K. Dar Head – International Banking� Nauman K. Dar Head – International Banking� Ayaz Ahmed Chief Financial Officer� Abid Sattar Head – Retail & Consumer Banking� Dr. Razi Azmat Head – Human Resources� Mudasir H. Khan Head – Global Operations� Jamil Iqbal Chief Compliance Officer� Faizan Mitha Global Treasurer� Salim Amlani Chief Internal Auditor� Aslam Gadit Head- Remedial Asset� Tulu Islam Chief Information Officer� Mirza Saleem Baig Head- Learning & Development� Nausheen Ahmed Company Secretary & Head- Legal� Aly Muntasir Head – Marketing & Brand Management� Mubashir Maqbool Head – Commercial & Retail Lending


HBL

Current Market Standing

The HBL Board met on February 20, 2009 at Karachi and announced its results for the year 2008, which show a strong growth in all areas.

Deposit growth for the year has been 12.5% and the net asset growth of the bank has been 19% over 2007.

HBL’s consolidated Pre-tax profit for 2008 is Rs. 22.03 billion and the profit after tax is Rs. 15.61 billion, which translates into an earning per share

of Rs. 20.47.

As per the circular of the SBP (BSD 4 of 2009), wherein the regulators have encouraged banks to record full impairment, the bank has

complied and in this regard 100% of impairment loss to the investments held by the bank have been routed through the profit and loss account.


HBL

Current Market Standing

The Chairman of HBL, Mr. Sultan Ali Allana presided over the Board meeting and said that the bank’s performance, despite the difficult

conditions both globally and in Pakistan, is very encouraging.

The bank will continue to focus and invest in technology, branch The bank will continue to focus and invest in technology, branch upgrades and human resources in order to deliver a higher standard

of services to its customers.

The Bank announced a final cash dividend of Rs. 5.50 per share (55%) and bonus shares of 20%.


HBL

HBL CultureAt HBL they have created a challenging environment that encourages

creativity and commitment.

In their pursuit of excellence, they are focused on attracting, developingand retaining the best talent in the marketplace.

Their dynamic culture offers diverse growth opportunities across Pakistan Their dynamic culture offers diverse growth opportunities across Pakistan and in 25 countries around the world.

HBL fosters a work environment where employees can realize their potential whether locally or in the international arena.

Thus, they enable their employees to achieve their professional goals while keeping in synch with the bank’s overall objectives.

They encourage you to explore this section to find out about current job openings and how to submit your resume


Human Resource Department

HBL

2007 - 2010 Hamdard University Students - Batch 2010 22

HBL

Introduction of Human Resource Management

Human resource management is relatively modern label for the range of themes and practices involved in managing people.

It is defined and described in a variety of ways. It is defined and described in a variety of ways.

This excerpt from Human Resource Management in a Business Context introduces the concept of human resource management.

It outlines HRM as a philosophy of people management and provides a framework for its role within the business context.


HBL

Introduction of Human Resource Management

People management - Human resource management has not ‘come out of nowhere’.

HRM has absorbed ideas and techniques from a number of areas. HRM has absorbed ideas and techniques from a number of areas.

In effect, it is a synthesis of themes and concepts drawn from over a century of management theory and social science research.


HBL

HR Departments & Functions in HBL

HBL as they know that it was one of the largest government banks in Pakistan.

The big challenges for HR team to developed acceptable culture in the The big challenges for HR team to developed acceptable culture in the company which help to kept the brand name intact and avoid the

bad experience to be a major part of industry.

To serve the purpose they are focusing or Downsizing as well as on rightsizing to meet the future challenges of the company.


HBL

HR Departments & Functions in HBL

Since the company was controlled by the Government, that is why number of employees in this organization was in surplus, and at one

time there were more than 22,000 employees in the company.

This overstaffing not only causing increase in cost but also decreases the efficiency of the bank.

Now with the change of management, HR is busy to utilize their existing resources by training & Development and hiring fresh &

right employee as well as they are trying to get rid of excess staff by offering them nice and handsome packages without any

humiliations.


HBL

Departments in HR

Since HBL is large organization that is why there are more than 200 HR employees to serve the 14,000 staff.

Because of the size of an organization, HR of HBL has centralized functioning having presence in each 18 domestic region to cater

the need of employee.


HBL

Departments in HR

Mainly the HR Department consists of following sub departments:

� Recruitment & Selection Department� Recruitment & Selection Department� Training & Development Department

� Policy - HR� Payroll Department

� Operation Department� Final Settlement & Legal Department

� Staff Finance Department


HBL

Recruitment & Selection Department & its Functioning

• Meritocracy is an integral part of HBL’s recruitment policy.

• Their merit-based recruitment process incorporates the principles of equal opportunity and leads to the appointment of the most equal opportunity and leads to the appointment of the most

capable candidate. • This ensures openness and transparency, allowing greater

confidence in the outcome of the selection process.


HBL

Recruitment & Selection Department & its Functioning

The merit principle at HBL aims to identify the most suitable person for the job assessed on the basis of the following parameters:

� Educational Background� Skills & Competencies� Abilities and Attitudes

� Experience � Interpersonal /Communication skills


HBL

Recruitment:

The diagram represents the process on which they base their selection.

This gives an overview to potential candidates as to the steps involved in


candidates as to the steps involved in becoming a part of the HBL team

HBL

Campus Hiring

They are proud of their ability to nurture individuals and empower them to hone their talents.

Their size gives them the unique ability to provide fast growth and significant responsibility early on in a career with multiple avenues to significant responsibility early on in a career with multiple avenues to

reach the top.

As part of HBL’s human resource strategy, they visit various universities across the country to induct & groom fresh business

graduates every year.

.


HBL

Campus Hiring

Enthusiastic and talented youth form the backbone of our banking operations and are nurtured to become future leaders at HBL

They hire fresh talent on a permanent basis and offer a wide range of career opportunities across all functions, including Finance, Marketing, Operations, Information Technology and Human

Resources.


HBL

Training & Development Department

This important function is carefully handled by HBL management. To cater the need of an organization, the bank separate system of MDI,

which are located at Karachi, Lahore & Islamabad.

These institutes not only serve for their own bank but also provided These institutes not only serve for their own bank but also provided professional training on request of reputable organizations.

Along with this training institute, the training team also deals with reputable & specialized training institute for enhancement of staff

skills.

This department is continuously working for better future of an organization.


HBL

Policy Department

This department always busy into analyzing and preparing the HR Policy.

They always look into trade off between company and Employee They always look into trade off between company and Employee benefits.

The main purpose of this department is to provide best perks and benefits to the employee on reasonable cost, as the employee work for the betterment of an organization with creative and fresh mind


HBL

Payroll Department

With the influx of information technology, it’s become quite easier with system to control repetitive nature of work.

Since HBL has good HRIS that is why this function performs centrally and on same date of the each month the salary and incentive

properly transferred into staff account without any error.

This department also generates pay slip individually by e-mail to each staff.


HBL

Operation Department

This is the main supportive sub department of HR.

Each record and daily basis quarries resolve in this department.

All employees remain in contact with this department regarding their personal quarries.

All issue of an employee always entertained in this department.


HBL

Final Settlement & Legal Department

This department mainly deals with the contract of an employee and kept any eye on each clause signed by employee, to save the

organization for any critical situation.

In HBL, this department also deals with settlement cases of retired, resigned or terminated employees


HBL

Staff Finance Department

HBL offers good number of finance facility to their employees like:

� Car Finance.� House Finance.� House Finance.� LFA.� Advance Rent.� 3 Basic Salary.� Provident Loan.

To keep the record of each transaction and smooth processing of the case this department has much importance in organization.


HBL

Perks & Benefits

HBL provide number of incentive to their employees to motivate like:

� Performance Bonus – Bi yearly.� Performance Bonus – Bi yearly.� Annual Increments.� Provident Funds.� Gratuity. � Pension.� Medical Benefits.� Benevolent Funds.� EOBI Fund.


HBL

Organizational Structure

Last year, HBL changed its staff catering and introduced international standard cater in organization.

The position of the staff is as of following order – Top to bottom.

� GM - General Manager - Pay Band II. � GM - General Manager – Pay Band I.� DGM - Deputy General Manager- Pay Band II.� DGM - Deputy General Manager – Pay Band I.� SM - Senior Manager – Pay Band II.� SM - Senior Manager – Pay Band I.� AM - Assistant Manager- Pay Band II.� AM - Assistant Manager- Pay Band I.� Officer - Pay Band II.� Officer - Pay Band I.� Assistant.


HBL

Appraisal System

HBL has bell shaped appraisal system, in which the appraisal made on the

basis of force HR policy.

The ranking made on following terms:The ranking made on following terms:

• Top 10

• EMP Exceeding Most Parameter

• ESP Exceeding Some Parameter

• MAP Meeting all Parameter

• MSP Missing some parameter

• MMP Missing Most Parameter


HBL

Conclusion

The HBL always focused toward the adoption of change in culture & environment as to be with the modern era in banking industry.

The way to implement any change in an bank / organization take decades to adopt, due to behavior have to be cultivated as a

pyramid of unique features is hard to change and if it changes that not change the particular it divert it self towards the other factors and

it is a chain of changes toward the betterment of bank.


HBL

Thanks


Habib Bank (Hbl).

Education

Transcript of Habib Bank (Hbl).