Managment project hbl group 6
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Group Members
Group Members:
Asad Ali (097)
Management Project M.com (morning)
Subject: Habib Bank Limited
Submitted to: Sir Abdul MajidSubmitted by: Group # 6
Taimoor Riaz (030)
Jawad ul Hassan (037)
Ashifa Firdous (014)
Mehvish Naeem (001)
TABLE OF CONTENTS
1. Summary
2. History And Introduction
3. Competitors
4. Important Management Practices
4.1. Culture And Its Dimensions
4.2. Decision Making Approaches
4.3. Goal Setting Approaches
4.4. Corporate Strategies
4.5. Design Organizational Structure
4.6. Role Of Human Resource Department In HBL
5. SWOT Analysis
6. Findings / Conclusions
7. Future Recommendations
8. References
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09-Feb-14
1. 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 thorough study of their people and environment. In it we focused on the bank
response to its employee and the employee’s attitude towards the bank. And culture and its
dimensions, Decision making approaches, goal setting approaches, corporate strategies, HBL
structure and also the role of Human Resource department in the HBL. 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.
2. INTRODUCTION and History OF HBL
2.1.Introduction of HBL
It is the prime Bank in country established in 1941 having a registered head office in Karachi. It
was nationalized in 1974, but recently on 26th February 2004 it has been privatized by
Government of Pakistan and is taken over by Aga Khan Fund for Economic Development
(AKFED). They acquired 51 percent of shares of HBL. It is one of the largest Banks of Pakistan
with 1439 branches.
2.2.History of HBL
The first branch of HBL started functioning on 30th August, 1941 at Muhammad Ali Road
Bombay, where Quaid-e-Azam Muhammad Ali Jinnah first of all opened his personal account.
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In 1942, on the desire of Quaid-e-Azam, Habib family migrated to Pakistan and later on shifted
the Bank's Head Office from Bombay to Karachi on 7th August, 1947 just one week prior to
independence, to play its pivotal role in the development of this newly born country. At the time
of independence, the areas which now constitute Pakistan were producingonly agricultural
products raw material for indo-Pak subcontinent. Partially no industries were there to process the
raw material, therefore the raw material was exported from Pakistan. There were 19 non-Indian
foreign Banks which were engaged in the export of crops from Pakistan with only two Pakistani
Banks i.e. HBL and the Australia Bank. The circumstances were completely un-certain. The
confidence of the people had been shaken by the un-friendly environment and till the time peace
had not been restored, people would naturally have been interested in other things.
2.1.1. Branch Network
2.1.2. MISSION
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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.
2.1.3. SYMBOL OF HBL
Symbol depicts
Bismillah ============Islamic Culture and Values
Sword ============== Power
Lion================ As a symbol of strength
The position of HBL in 2012 and 2011
Rupees in Million
2012 2011Total Income 73,720 71,181Total Expenditure 31,784 30,114No. of Branches 1540 1506No. of Staff 13,978 13,661
2.1.4. PRODUCTS OFFERED BY HBL
a) Mobile Banking
b) Credit card scheme
c) Computer Prize Bond
d) Computer accounts
e) Night safe scheme
f) “Drive in” Banking
g) School Banking
h) Gift cheques schemes
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i) Foreign Tele printer Service
j) Small Factory Owner Scheme
k) Rupee Traveler’s Cheques
l) Tele-printer service
2.1.5. AGENCY SERVICES TO THE CUSTOMERS
HBL also provides agency services to its customers. Some of which are as follow:
a) Collection of cheques
b) Acts as an agent
c) Transfer of Funds
d) Execution of standing instruction
e) Purchase and sale of securities
f) Collection of dividends
g) Foreign exchange Business
3. Competitors
• NBA (National Bank Limited).
• UBL (United Bank Limited).
• MCB (Muslim Commercial Bank).
• Allied Bank.
• Standard Chartered.
• Bank Alfalah.
Foreign Banks in Pakistan HSBC American Express Bank Limited Emirates Bank Doha Bank Bank of Tokyo Mitsubishi Limited
4. Important Management Practices
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4.1.HBL Culture its Dimension At HBL they have created a challenging environment that encourages creativity and
commitment. In their pursuit of excellence, they are focused on attracting, developing and
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 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.
Innovation and Risk Taking:
Habib Bank Limited makes its all employees more attentive and innovative. HBL orders
employees to bring innovation in all its services which are providing to the public. The
innovations brought by HBL are all risk taking because innovations are result of the risk. In HBL
innovation there are a lot of services including utility bills payment, western union, debit card,
credit card and a lot of government services performed by HBL including fees payment to board
of education, fees payment for applying for any government job. In all above mentioned services
there is risk and due to such risk all banks are not providing such services. HBL “lives and
breaths” by encouraging its employees to be innovative.
Outcome orientation:
Habib Bank Limited management focus on the results or outcome rather than that how those
results have been obtained. Managers totally checks the results which are obtained after
providing all the services to its all loyal and other type of customers. The managers takes action
on the behalf of previous results obtained for future. The customers are satisfied by HBL
provided services on less interest rate as compared to other private banks, because HBL is semi
government bank and provides its services on low rate of profit. HBL goals are both profit
earning and customers satisfaction. The managers checks the annual reports and judges the
customers behavior for checking the outcome of Habib Bank Limited.
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Team orientation:
Habib Bank Limited’s work is organized around teams rather than individuals. The totally work
performed by Habib Bank Limited is the result of team work. Team orientation is applied in such
a form in HBL that if you have to make one transaction with HBL for withdrawing amount from
your account then you are required to present your cheque on counter than your cheque refers
from counter to the accountant that refers your cheque after checking your balance and
confirming your signature to the cashier that pays to you your required amount. In such a way
Habib bank limited performs its services in a team shape.
4.2.Decision Making Approaches
Rationality: Rational decision making that is they well make logical and consistent
choices to maximize value.
Bounded rationality: Bounded rationality says that managers make decisions rationally
but are limited by their ability to process information.
Intuition: Its making decision on the basis of experience, feelings, and accumulated
judgment.
In HBL we use Bounded Rationality
In HBL branch we judge that the bounded rational approach applied because in their everyone as
well as the manager are bounded to follow the command of top management . Employees are
bounded to follow the command of branch managers in which they work. And branch manager
are bound to follow the instructions it means employees are not free to take decisions in the basis
their own knowledge, experience or feelings they can take decisions only on the basis on
command or instruction of upper level of management.
4.3.Goal Setting Approaches
In HBL we choose in Goal setting approach Traditional Goal Setting.
Traditional Goal setting approach: In traditional goal setting, goal set by top managers
flow down though the organization and become sub goals for each organizational area.
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Management by Objectives (MBO): A process of setting mutually agreed-upon goals
and using those goals evaluate employee performance.
In HBL we use the Traditional Goal Setting
Now In HBL we see that the Traditional Goal Setting Approach work because At present the
Bank operates through one central and 23 Regional Offices and 1439 branches, all over Pakistan.
The banking system divide into seven dimension and every dimension have a top manager and
the take all decision that top management just as The president and Executives Committee look
after the affairs of the Bank.And overall controlling authority, president manages the
International Operations group (International operations group is one of the seven dimension)
individually.
4.4.Corporate Strategies
There are three main types of corporate strategies including Growth strategy, Stability strategy
and Renewal strategy. HBL is now using growth strategy.
GROWTH STRATEGY:
Habib bank limited using the growth strategy is going to achieve its desired goals and objectives.
By using growth strategy HBL is expanding its market by opening its new branches in cities and
also in local areas for the purpose of serving more and more people and to earn more and more
profit. HBL is performing its duties by providing a lot of facilities including internet banking by
which any account holder can fulfill all his banking needs anywhere or any time by visiting
www.HBL.com. Phone banking facility through which the anyone can get information regarding
our services by just a call at 111-111-425. Another facility of online banking is providing to the
customers by HBL for growing up in the market.
4.5.Organization Structure
A well-developed and properly coordinate structure is an important requirement for the success
of any organization. It provides the basic framework within which functions and procedures are
performed. Any organization needs a structure, which provides a framework for successful
operations. The operation of an organization involves a number of activities, which are related to
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decision making, and communication of these decisions. These activities must be well
coordinated so that the goals of the organization are achieved successfully.
4.5.1. Structure Of HBL
At present the Bank operates through one central and 23
Regional Offices and 1540 branches, all over Pakistan. The
president and Executives Committee look after the affairs of
the Bank. Each Regional Head Quarter is headed by a Chief
Executive and assisted by General Manager Operations and
General Manager Support Services. The Regional Head
Quarter controls the branches in their area. Overseas
operations consist of 65 main branches, two affiliates, two
representative offices and two subsidiaries. President, from
Head Office at Karachi controls the officers of the Bank
with the help of the senior management. Functional
responsibilities of the Banks are broken into seven groups
known as
1) International Operations Group
2) Corporate Banking and Treasury Investment Group
3) Retail Banking and Operation Group
4) Finance, Audit and Administration Group
5) Assets Remedial Management Group
6) Credit Policy Group
7) Corporate Bank, Financial Institutions and Project
Finance Group
In addition to the overall controlling authority, president
also manages the International Operations Group individually. While the Senior Executive Vice
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Presidents supervise rest of the functional groups. Each Senior Executive Vice President is
individually responsible for the group which is assigned to him. At the level of provinces there
are Regional Head Quarters headed by Regional Chief Executives (RCE). Each RCE is assisted
by GM operations and GM Support Services. Branches are also controlled by the RCEs. Circle
Offices of the past times have been removed to reduce Managerial Layers, which were working
under the control of Zonal offices. This happened as a result of policy of beginning new changes
in the organizational structure.
4.5.2. Departments of HBL
There are few departments on which general or day to day banking of HBL composes.
4.6.Role of Human Resource Department in the HBL
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4.6.1. 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 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.
4.6.2. 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 23 domestic region to cater the need of employee.
Mainly the HR Department consists of following sub departments:
Recruitment & Selection Department
Training & Development Department
Policy – HR
Payroll Department
Operation Department
Final Settlement & Legal Department
Staff Finance Department
4.6.2.1. 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.
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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
4.6.2.1.1.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 becoming a part of the HBL team.
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Develop Candidates database
Recruitment
and Selection
Mentoring Training &
Development
Vacant Positions
Analysis of Positions and Requirement
Analysis of Positions and Requirement
Identify CandidatesIdentify Candidates
Pre Screening & Short ListingPre Screening & Short Listing
Test/ InterviewsTest/ Interviews
Final SelectionFinal Selection
4.6.2.2. 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.
4.6.2.3. Policy Department
This department always busy into analyzing and preparing the HR Policy. They always look into
tradeoff between company and Employee They always look into tradeoff 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.
4.6.2.4. 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 anyerror. This department also generates pay slip individually by e-mail to each
staff.
4.6.2.5. Operation Department
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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.
4.6.2.6. 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.
4.6.2.7. Staff Finance Department
HBL offers good number of finance facility to their employees like:
Car Finance.
House Finance.
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.
5. SWOT Analysis Of HBL
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
5.1.Strengths
A skill or capability that enables HBL to conceive and implement its strategies.
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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.
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.
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.
Customer enjoys the services at the residential localities.
5.2.Weaknesses
Highest number of branches effecting the proper maintenance and difficulty in providing
same working environment at the each branch
Lack of customer feedback.
Low job satisfaction.
Poor ATM’s Service
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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
downsizing.
Females feel uneasy in an environment among the male workers.
Lack of professionalism in the branch employees mostly.
5.3.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,
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.
Due to efficient and veteran management group, HBL can also improve and expand its
foreign operation successfully.
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Habib Bank Limited provides opportunity to utilize its skills and efficiencies in leasing
business.
5.4.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.
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.
6. Conclusion
HBL is clearly the first choice of every one who believe in qualitative approach of banking an
environment of highly responsible people. Bank is enjoying a healthy market share and taste of
good status in terms of its operative features and customer support. HBL is clearly the best bank
operating in Pakistan. Personal loan is a Distinguished feature of HBL experiencing a good
reputation and reasonable mark up with respect to prevailing market mark up with assurance of
satisfaction and support. HBL has more customers as compare to other banks, if they given
proper attention to every customer then in few years it will be the leading bank of the country.
7. Recommendations
The management should try to decrease job insecurity among the employees.
Training program should be started for internees and newly appointed employees.
There should be transport facility for the employees.
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The number of employees should be increased in order to decrease the workload.
The bank charges high service charges as compared to the other banks, so these should be
lowered down.
Surveys must be conducted regarding customer satisfaction level and all employees of
this dept. should look forward to getting feedback whenever possible.
Adding of value added features that offer competitive advantage is also a means of
avoiding customer dissatisfaction.
Quick response to customer queries is necessary to maintain a healthy relationship with
the customer.
Proper training of customer handling should be given to employees. Training workshops
and coaching clinics should be considered as an option that would provide adequate
results.
8. REFERENCES
Personal Reference
Muhammad Bilal
(Assistant Manager in
HBL Branch Wazirabad )
Websites
www.HBL.com.pk
www.google.com
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