HBL and STANDARD CHARTERED

[2009]TERM REPORT

(COMPARATIVE ANALYSIS OF HBL & ALFALAH BANK)

SUBMITTED TO:

MAÀM AMNA YOUSUFDFDSFDSFSDFSDF

SEC.: “D”HUMHUMAN RESOURCE MANAGEMENT

(TERM REPORT)

SUBMITTED TO:

AMNA YOUSUF

SUBMITTED BY:

Hamza Ismail (8105)

Mehwish Zia (7731)

Nizamuddin Shah

Sarosh Anjum (8181)

Sonia Kazi (8055)

SEC.: D

DATED:

DECEMBER 15, 2009

INSTITUTE OF BUSINESS MANAGEMENT

HAMZA ISMAIL (8105)

HUMAN RESOURCE MANAGEMENT Page 2

MEHWISH ZIA (7731)

NIZAMUDIAACKNOWLEDGMENT

“Proclaim in the name of the Lord and Cherisher, who created man, out of a clot congealed blood. Proclaim! And thy Lord is most Bountiful.”

This report is the result of work completed at the Institute Of Business Management. Working on the report was a true learning experience.

We would like to thank Maàm Amna Yousuf as our teacher and lecturer for his patience and unsurpassed inculcation of his vast experience. To our family for always being there... the encouragement and moral support they provided when we needed them.

We hope that this knowledge will benefit us in the years to come.


LETTER OF TRANSMITTAL

December 15, 2009

Amna Yousuf

Instructor for Human Resource Management

Institute Of Business Management

Karachi

Dear Maàm:

Here is the report on “HR practices of targeted company and Benchmark Company” that

you assigned to us in early December 2009. We opted for HBL as targeted company & Alafalah

Bank as Benchmark Company. The report includes information through primary as well as

secondary sources on the HR practices of HBL & Alfalah Bank. The purpose of this report is to

elaborate the comparison of both the companies and discuss the problems and recommendations.

It has been a privilege to work on this project and we have put in our utmost efforts to prepare as

comprehensive a report on the topic as possible. The report, however, may be short of any kind

of statistical data due to the confidentiality policy of Habib Bank Limited and Alfalah Bank.

If you have any query concerning the report, we will be happy to discuss them with you.

Sincerely,

Hamza Ismail

Mehwish Zia

Nizamuddin Shah

Sarosh Anjum

Sonia Kazi


LETTER OF AUTHORIZATION

Institute of Business ManagementKorangi Creek, Karachi-75190, Pakistan

UAN (9221)111-002-004, Fax: (9221) 509-0968Http://www.iobm.edu.pk

April 8, 2023

Dear Reader, It is an honor for us to prepare the report on “The comparison of HBL’s HR system (weak practices) with Bank Alfalah, Top Employer of Pakistan” which was assigned to us by our respected teacher Ms.Amna Yousaf. We would like to thank her for providing us information and guidance throughout the semester in order to materialize our content for the report.

The primary source of the information for this report is the HR Head of HBL & the employees from both the organizations. While the secondary sorurce of information was the HR Manual of Bank Alfalah.We could not have achieved this task without the cooperation of Ms. Naila Sajjadof HBL, Mr. Ch. Anjum Shaheen of HBL, and Mr. Zia of HBL, Mr. A. Saeed of Bank Alfalah. They took time out of their busy schedules to aid us in our report and for that; we owe them a debt of gratitude.

It was a pleasure creating such a report, on a topic so informative and practical.

Sincerely yours,

Sarosh Anjum (8181) Mehwish Zia (7731) Sonia Kazi (8055) Hamza Ismail (8105) Nizam uddin Shah (


http://www.iobm.edu.pk/

EXECUTIVE SUMMARY

The task of this report is to examine the HR system of targeted company and compare it with any

Top Employer (Benchmark Company). We selected Bank Alfalah as the bench mark company

and HBL as targeted company. The report includes a brief introduction of both the organizations

and the problems and deficiencies of targeted company, the sources of the problems and the

recommendations for the solution of the particular problems.

We found the employee turnover, compensation packages, performance appraisal, training, and

employee development as the major areas where problems exist at HBL. In compensation plans

the medical facility and provident fund were major issues. In performance appraisal the policy of

promotion was the major problem. In training the procedure used for analyzing training needs

was not appropriate.

For this project we drafted questionnaires and then visited both the organizations to get the basic

ideas about both the organizations.

Report could be short of any statistical data due to confidentiality policy of HBL and bank

Alfalah. However, the responses to questionnaire help us to a large extent in obtaining the data

and figures regarding the HR department`s policies and practices.

Moreover, along with comparative analysis of both the organizations, we have also discussed the

recommendations for improvement.

In a nutshell, the report was a true learning experience for us.


TABLE OF CONTENTS


INTRODUCTION

PURPOSE STATEMENT

The purpose of writing this report is to compare the Human Resource Practices of Habib Bank Limited with the benchmark i.e. Bank Alflah.

INTRODUCTION OF BANK ALFALAH

Bank Alfalah Limited was incorporated in June 21st, 1997 as a Public Limited Company under company ordinance 1984, its banking operations commenced from Nov 01, 1997. The bank is engaged in commercial Banking and related services as defined in the banking companies ordinance, 1962.

Bank Alfalah has emerged as one of the leading commercial bank in the financial sector of Pakistan. Bank has made significant contribution in building and strengthening both the corporate and retail banking in Pakistan. Most of its share are owned by a consortium of Abu Dhabi after the debacle of BCCI, the Ministry of finance acquired its three branches and Habib Credit and Exchange Bank was incorporate on June 21st, 1992 as Public Limited Company under the companies ordinance4 1984, and commenced banking operation from Nov. 01st 1992. It is engaged in commercial banking and related service as defined in the banking companies ordinance, 1962.

Following the privatization in July, 1997 Habib Credit and Exchange Bank, assumed the new identity of Bank Alfalah on February 25, 1998 and with this a challenge was launched the challenge to transform this bank into a highly professional most efficient and service oriented institution.

Charged with the strength of the Abu- Dhabi based consortium and under the leadership of his Highness Sheikh Nahayan Mubarak Al- Nahayan, Minster of Education Govt. of Abu- Dhabi and a prominent member of Royal family the Bank is energized by the vision of the development of consumer sector in Pakistan.

Prioritizing its product portfolio in line with consumer needs and wants the bank is committed to develop product that give more value to its customer be it is a simple bank account or complex financial of a major project designing product. Portfolio in response to customers preferences Bank’s product like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to its customer.


Assessment of the needs and wants of its customer is an on going process at bank Alfalah which help it to continually develop new product and services. Some of our new products are ALFALAH MILKIAT FINANCE, ALFAHAL KAROBAR FINANCE, ALFALAH QUICK FINANCE.

To continuously offer courteous professional and advanced banking solution banks team has recently been energized by going through training programs with a focus on information technology with a team of talented services dedicated professional bankers. Bank Alfalah Limited commits all its energies resources and time to cater to all banking and financial needs of customers.

To make banking solutions accessible to more and more people, Bank Alfalah Limited has embraced upon a rapid expansion program. Aiming to provide networking that makes its services available to any of its customer’s in all the major urban centre of Pakistan with a view to go international with its key indicators of progress already soaring to new heights the bank is committed to put all its energies resources and time to bring higher value and satisfaction of its customers employees and share holder.

Technological developments are opening up new vistas of solutions of distributing traditional financial product. Concurrently rapid change in customer preferences has related in a major shift from manual to automated services of the bank. Information technology today is the key of the bank to sustain and succeed into the corporate world. Therefore, during the recent past, Bank Alfalah Limited made heavy investment to wards exchanging its capabilities in the area of automation and technology. Bank Alfalah Limited is well positioned to meet client needs with improved competitive advantages. Bank Alfalah Limited is on the way of expansion of its business and branches network presently, there are 295 branches of Bank Alfalah Limited spread all over the Pakistan and 45 still in pipeline to covering major business centers and principle cities

The Bank’s commitment to its customers is evident from its mission statement:

“To provide innovative and high quality product to its customers at the lowest possible rates & to achieve all set goals regarding services performance and goodwill”

INTRODUCTION OF HABIB BANK LIMITED

HBL established operations in Pakistan in 1947 and moved its head office to Karachi. HBL first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in


inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.

On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control was handed over to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees.

HBL 1437 branches are spread from one end of the country to its last frontiers in the north, east, west and south thus contributing to the overall well being of the communities they serve.

Their presence in the country diverse urban regions as well as in the rural areas, including far flung locations of the country. Often classified as in accessible areas, creates opportunities for HBL to provide financial services that compliment business of varying sizes and complenites.

MISSION STATEMENT

To make their customers prosper, their staff excel and create value for shareholders

VISION

“Enabling people to advance with confidence and success”

HBL BRAND

HBL brand identity is the outward expression of what they stand for as an organization. This is summarized in their vision, mission and is supported by their values.

VALUES

HBL values are the fundamental principles that define their culture and are brought to life in their attitudes and behavior. It is their values that make them unique and unmistakable


CUSTOMER FOCUS

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

MERITOCRACY

HBL 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.


SUCCESSION PLANNING

SUCCESSION PLANNING AT HBL:

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 succession planning. MT is defined in

the following section of Training and developing methods.

HBL uses following programs for training and development

Management Trainee

Management associate

Cash officers

Internships

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.

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.

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.

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.

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.


SUCCESSION PLANNING AT BANK ALFALAH LIMITED

Succession Planning is the process of systematically identifying all key positions within Bank Alfalah (especially those which are likely to fall vacant or to open up in the near future due to promotion, resignation or retirement). The next stages in the process are to select and then to prepare candidates from within the Bank of these positions.

BENEFITS:

The primary benefit of succession planning is that a sequence of personnel actions is initiated so that one or more candidates are identified for each key position in advance of actual need. This prior identification permits opportunities for mentoring and developmental activities to improve their readiness to succeed to specific positions. The benefits of succession planning are;

Bank Alfalah limited would grow its own future managers rather than recruiting outside the organization. These managers will be fully conversant with the organizational culture prevailing at the Bank.

The learning curve for future managers to prepare for meeting challenges of higher responsibility will shorten.

Commitment and loyalty among officers aspiring for higher positions will increase. Morale and motivation will also be enhanced, while staff turnover will go down.

KEY ELEMENTS OF THE SUCCESSION PLANNING POLICY:

Bank Alfalah limited Succession plan to achieve its goals, the following key elements are to be incorporated in its design:

CEO and top management support Integration with strategic business planning and projected changes in the

organization

Identification of critical management positions, skills required for incumbents and gaps in management succession

Time lines for filling succession gaps for organizational and individual needs


Job profiling to identify critical competencies for effective performance in specific jobs

A system for communication of the succession planning process to field management

A system for identification, nomination and selection of successors, based on a review of the data on all potential candidates, including appraisals of performance and potential, experience and skills, education, salary history and personal career goals

Determination of training, development and experience needs of candidates, including a system for monitoring, feedback and modification of such development plans

A review of transfer and placement needs at the point in time when those individuals are ready to advance.

CRITICAL POSITIONS TO BE FOCUSED:

Bank Alfalah limited Succession Plan is to focus on three tiers of management personnel in all units of the Bank. Succession plans for senior management levels in Tiers A (Senior Management) and Tier B (Managers of Branches/ Units) will be overseen by HRD. Succession plans for Tier C positions (Departmental Heads at Branches & Section Heads at HO/ Product Units) will be drawn and managed by concerned management at Tiers A and B, having received guidance and training towards this end from HRD.

TALENT POOL:

A Talent Pool of bright and young employees, having post graduate degrees from reputable institutions and two years’ experience with Bank Alfalah limited , will be provided training and development, and will be promoted to positions of higher responsibility on a fast track basis.

TRAINING AND DEVELOPMENT NEEDS:

HRD and TDC Management, in consultation with Senior Management of the Bank, will draw Training & Development plans for all officers nominated as successors, as well as those placed in the Talent Pool. HR Committee will monitor the progress of Training & Development Centres in providing focused training to both the groups: Nominated Successors and Officers in the Talent Pool.


The following step by step plan is suggested for the implementation Bank Alfalah limited Succession Planning Program:

1. HRD to institute a system of identifying gaps, getting successors nominated for Tier A and Tier B positions and to prepare a quarterly progress report to be presented in HRMC meetings

2. The HR Management Committee will review progress of succession planning program during its quarterly meetings. The committee will have the authority and responsibility to make decisions regarding ratification/ nomination of Bank Alfalah limited staff as successors, as well as nomination to the talent pool. It will also have the authority to place staff members nominated as successors, as well as those in a talent pool, in managerial positions.

3. A Talent Pool is to be established consisting of potential candidates for managerial positions. Staff placed in Talent Pool should also be available for assignment for vacant successor positions with in their existing Branches/ Units/ Areas or in other units throughout the network.

4. Training needs are to be identified, training programs developed (or identified externally) and conducted for officers nominated as successors or placed in the Talent Pool.

5. HRD is to periodically measure the success of the succession planning program and process. A review and audit process should identify supply and demand, and verify what is working and what is not. It should also track career paths of officers nominated as successors, as well as those in the Talent Pool.


TRAINING & DEVELOPMENT

TRAINING:

Training is the process of developing qualities in human resources that will enable them to be more productive.

PLANNING OF TRAINING NEEDS:

HBL:

Needs analysis: Identify job performance skills needed, assess prospective trainee’s skills, and develop objectives At HBL training needs are analyzed by:

Task analysis:In this area a detailed study of a job to identify the specific skills required, especially for new employees are analyzed.

Performance analysis:After analyze the main tasks required in performing jobs it is verified that there is a performance deficiency and determining whether that deficiency should be corrected through training or through some other means (such as transferring the employee). If there is found some deficiency in performing job then training is highly recommended to recover deficiencies.

BAL -- BANK OF ALFALAH:

The objectives of training activities are to keep Bank of Alafalah employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. For this purpose a systematic approach for conducting Training needs Analysis (TNA) on scientific basis is being developed by a sub-committee of Learning Council comprising of members from Training and development Centre and HRD. The proposed TNA exercise will be launched as soon as it is fine-tuned and after taking all the stake-holders into confidence. Further BAL takes following steps:


Annual Training Plan An Annual Training Plan shall be circulated on quarterly basis for both Training and Development Centres, keeping in view the requirements of various departments of the Bank currently identified through the annual appraisal form and feedback from Audit Division. After conducting the TNA, this training plan will be more reflective of actual training needs of our staff. The plan would list all workshops, courses & seminars to be offered during the quarter.

COMPARATIVE ANALYSIS:

BAL is following a formal planning system by creating committed and Training centers which will analyze the training needs while HBL lacks in formal planning. Simply analyzing the needs is not sufficient. There should be a formal plan like that of BAL enlisting all the activities and plans which are to be scheduled for training.

BAL creates a detailed plan enlisting all workshops, courses & seminars to be offered during the training whereas at HBL only performance deficiencies are figured out with no planning in mind as how to remove these deficiencies by training. HBL need to make an effort to design the plan for how to train and to what extent to train EACH individual because individual differences are inevitable.

NEW JOINER`S TRAINING

HBL

After selection, three months training is required at Management and Development Institute only at Karachi, Lahore and Islamabad for those who don’t have any work experience in banking sector.

New employees are trained through coaching. HBL follows following programmes for new joiner`s training however they are also used for senior levels also.

Apprenticeship Training: It is actually combination of OJT and lectures delivered to employees. It may be for both levels of managerial and fresh employee. In this method employee is first given the lecture about his/her job and after that implementation of lecture in practical field is observed.


Effective Lectures: These lectures are delivered to new employees as well as senior level employees and managerial level too. In these lectures employees are prepared for facing new challenges in the banking sectors and also told them how to achieve those challenges.

BAL

All newly inducted staff members are provided systematic training in groups at Bank’s Training & Development Centers at Karachi or Lahore, to make them well conversant with Bank’s operating procedures, rules, history and culture before they commence their job with the Bank. Furthermore, the purpose of this training programme is to emphasize on customer service, courtesy and manner, as well as a number of other unique focus areas.

Training plan for new joiners:

Category Total Duration

For Branch Officers

Five days (Two days of orientation training., followed by three days of technical training)

For Branch Dept. Heads

Four days (Two days of orientation training, followed by two days of technical training)

Programme Structure

First and third Mondays of every month, training courses will be organized in small batches. In some cases, training will be imparted through individual instruction and systematic and guided study of operational manuals (followed by quizzes).

Faculty

Mostly in-house faculty, plus some field specialists. For Branch Managers’ orientation session, concerned Area Manager and one or two available Group Heads/ GMs will be invited for discussions/ presentations.

Course ContentsDetailed contents are handed over to candidates upon their arrival at the TDC.

COMPARATIVE ANALYSIS:


Both the banks have their training and development centers at Karachi & Lahore for New employee`s training.

At HBL training is done with lectures and apprenticeship programmes while BAL follows a training plan showing total duration, course contents etc. required for training. Although HBL is on a right path, it is advisable for HBL to construct a detailed plan like that of BAL as it will be convenient for both trainer and trainee. Trainee will know what is expected of him/her by this plan while trainer can schedule his/her activities then accordingly.

MOTIVATION

HBLNothing is mandatory for employees at HBL as regard to training. However, HBL encourages its employees to participate in the seminars arranged by banking sectors not just in the Pakistan but also beyond the boarders.

BAL Minimum Training for All: At BAL, it is obligatory for each employee of the Bank

to attend at least two days of training in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses in advance (as prescribed by the concerned Training & Development Centre). Employees are encouraged to take initiative and get them nominated through their supervising officers for training courses relevant to their needs.

Branch Managers’ Mandatory Training: All Branch Managers are also required to undergo one-month comprehensive training to equip themselves with up to date skills in areas of banking, management, customer service, personal effectiveness and IT etc. Such training is usually divided into four one-week modules in each quarter.

COMPARATIVE ANALYSIS: At BAL it is obligatory for employees to undergo training sessions whereas at

HBL there is no such condition as “obligatory” imposed. Consequently, employees at HBL don’t bother to get their names nominated for training due to which they`re unable to learn new skills. Further, they`re not motivated to participate. So basically, the element of motivation is missing at HBL which should be revived so that employees could be trained. When they will participate and get to know new skills then only they can be motivated and this could be happen only if HBL will impose condition of mandatory training.


Although HBL does motivate employees (managerial level employees) for ex house training i.e. to send employees abroad for training to attend seminars, it is better for HBL to have mandatory training at least for two or four weeks like at BAL, at which each employees has to undergo training session of two days and for branch managers it is one month.

EXTERNAL TRAINING

HBL

Outside seminars: HBL encourages its employees to participate in the seminars arranged by banking sectors not just in the Pakistan but also beyond the boarders. By participating in outside seminars, employee gets authentic knowledge about the new horizons of banking sector which is useful for HBL and makes it leading bank in Pakistan.

BALIn order to augment in-house training efforts, external training providers will be utilized on a periodic basis, by nominating Bank Alfalah’s employees to external courses. Alternatively, external training consultants may be invited to conduct training programs exclusively for BAL employees, whenever deemed necessary.

COMPARATIVE ANALYSIS: Apparently, there is no concept of external training at HBL except Outside

Seminars which is only for managerial employees while at BAL external training consultants are invited to conduct training programs exclusively for BAL employees.

HBL can also follow the path similar to Alfalah and can introduce the concept of external training. This could lead HBL to success as external training is an important as well as though provoking activity for employees.


TURNOVER

OVER-STAFFING:

HBL before privatization had more than 31000 employees, management and non- management, they aimed to reduce this number to 27000 employees with the help of its new policies.

POLITICAL PRESSURE:

Before privatization HBL was highly influenced by the governmental policies as it was the largest financial institute under government control. The economic policies of the country were also affecting the bank’s policies. The problem occurred mainly because of the unstable political situation in Pakistan which was causing the huge fluctuations in governmental policies resulting in the inconsistency of HBL’s policies which led to the inefficient results. The motive of privatization was to make HBL as independent as possible.

LACK OF PRE AND POST DISPUTE ANALYSIS:

HBL lacks a pre and post dispute resolution analysis this means that there is no analysis or interpretation of where the organization wanted to be and where it actually is after implementation of the process of resolution and there were no proper guidelines giving directions to take about the conflict resolution process. Hence, this resulted in failure in having effective resolution process and there was no proper comparison or evaluation of whether the organization has achieved its desired state can be done giving a rather blur picture to both employees and management and leaving them confused about whether implementing such a process is cost and time worthy in the future since they do not know the pros and cons of this system.

For example, when HBL decided to downsize and make certain employees quit, they were not completely sure of whether doing so is likely to give them the desired outcomes rather they were just hitting the ball blindfolded and simply hoped to achieve what they want .furthermore, when HBL went towards retrenchment, and successfully but with great difficulty achieved it, managers did not do any proper formal analysis with the top executives of what were the difficulties they faced and how to make sure they do not reappear in the future when they take such a crucial action. Also, there was no evaluation of results the conflict appearing from retrenchment brought to them. Moreover, no analysis of how to implement safety measures to avoid facing the same conflict again was done.


NO JOB SECURITY FOR THE EMPLOYEES:

In the past, employment at HBL was typically seen as long term relationship between HBL competing in expanding markets and hourly wage workers or salaried managers. But today’s employment relationship at HBL is very different. Increased participation of young workers and fresh graduates, the prevalence of part-time or temporary workers, increased risk of permanent job loss, and other similar factors have changed the basic employment contract and introduced continuing uncertainty into the employment relationship for the remaining employees after retrenchment as well due to which problems arises in the dispute resolution system and the main problem is that while minimizing conflict, another issue of job security for the temporary and for the remaining employees arises as well.


PERFORMANCE MANAGEMENT AND APPRAISAL

Evaluating an employee’s current and past performance relative to its performance standards is called performance appraisal.

A process that consolidates goal settings, performance appraisal, and development into a single common system to ensure that employee’s performance is according to company’s aims is called performance management.

PERFORMANCE MANAGEMENT AND APPRAISAL AT HBL :

Performance appraisal is the process of reviewing past productive activity to evaluate the contribution individuals have made toward attaining management system objectives.

HBL’s performance management and reward systems ensure that goals are met in an effective and efficient manner. HBL defines a clear path for you to contribute to the organization’s overall goals, peppered with regular reviews and feedback to help you gauge your progress. At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will accelerate to reflect your input. HBL generally uses BARS (Behaviorally anchored rating scale) it is an appraisal method that uses quantified scale with specific narrative examples of good and poor performance.

PERFORMANCE APPRAISAL FORM OF HBL:

HBL’s performance appraisal form contains two sheets, one is FORM B2 and other is FORM B3.

FORM B2

It contains appraisal for Clerical staff at branch or Field Offices there are two main headings Area/factors and level of achievement points. Level of achievement point contains five points ratings.

A (Excellent), B (very good), C (good), D (unsatisfactory) and N/A. AREA/factors contains five kind of factors which are

A-Productivity B-Individual \attributes C-Technology D-Customer Service E-Personal


Each area is further categorized in different factors.

A-Productivity contains

1. Job knowledge2. TD clearing/Bills Ledger Posting3. Timely Lodgment of Clearing 4. Followed Return unpaid cheques5. Nothing of Stop Payment Instruction6. Volume of Work Handled7. Accuracy & Attention to Detail8. Willingness & Ability to work with other units/people9. Ability to write Effectively10.Adoptability of new assignments11.Deposit Mobilization /saving/current CPDC etc12.Number of fresh account arranged13.Reduction in customer complaint14.Hajj application target15.Timely Balancing of branch ledger/books etc16.Accuracy in counting/cash handling & counting speed17.Receiving of payments of utilities18.Dispatch of requisite statements19.Maintenance of guns in order20.Zero theft21.Delivery of letter/Dak in time22.Quality of work 23.Speed of work24.Filing and record keeping25.Typing/data entry speed26.Typing/data entry accuracy

B-Individual Attributes contains

1. Professional/technical knowledge & competency2. Initiative (eagerness to learn, enlarge knowledge)3. Reaction to responsibility4. Sense of responsibility5. Oral communication Ability6. Written communication ability7. Sorting of notes8. Cash excess/shortage situation9. Performing under pressure10.Ability to work without supervision11.Willing to work after office hours


C-Technology contains

1. Knowledge of computer2. Knowledge of internet & E-mail

D-Customer contains

1. Courtesy to Customer2. Rapport with customer3. Creative response to customer needs4. Business sense (maximum revenue/ minimum cost)

E-Personal contains

1. Health & energy2. Appearance3. Integrity & loyalty4. Grooming5. Manner of speech6. Attitude7. Intelligence8. Leave record9. Attendance record10.Punctuality

Each factor is marked tick against level of achievement and in the end total points scored is written in the specific box. Also the signatures of appraisee and appraiser are taken.

FORM B3:

This form contains two big boxes. First box is about Development Plan/ Supervisor comments. In this box supervisor gives comments about appraisee strengths and further appraisee’s development needs (need to improve academic & professional qualification).

Second box is called overall assessment box. In this box appraiser gives the overall performance grade to appraisee according to B2 form and the grade is given in form of A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then overall assessment is reviewed by reviewer and reviewer gives its comments too, but it is not necessary. After it final acceptance of appraisee is also taken along with signatures.


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Following is some brief detail about appraisal areas

A-PRODUCTIVITY:

Productivity is actually about the performance of employee in the clerical field. It indicates that how much effectively and efficiently an employee performs its duty and how much employee is committed with the achievement of organizational goals and objective. Following factors of Productivity are defined briefly;

JOB KNOWLEDGE: It is first and basic factor of productivity. This factor shows that how much employee has awareness about his/her job.

TD CLEARING/BILL LEDGER POSTING: This productive factor indicates the ability of employee about ledger posting of HBL. His shows how much an employee is expert and clear in indicating or posting of ledger regularly.

TIMELY LODGEMENT OF CLEARING: This is the job in which the employee of HBL is to present the cheques of other banks, which are given by customers for depositing in their accounts in the State Bank before 10 o’clock. In this assessment it is determined whether employee is punctual in presenting cheques to State Bank in the specific time.

FOLLOW RETURN UNPAID CHEQUES: In this job the employee is to return the unpaid cheques to the bank before 3 pm which are rejected by State Bank due to some incompleteness like absence of signatures, inefficient money in the account of customers or other reasons cause refusal of cheques by State Bank. In performance appraisal it is assessed that whether employee is fulfilling his job well or not and on the basis of his performance he is given points.

NOTING OF STOP PAYMENT INSTRUCTION: In this job employee notes the stop payment instruction due to lose of cheques by customer. If customer loses his/her cheques then he/she has to tell about lost cheques to the branch of HBL and in response the employee is to note down the stop payment and also feed this information in the computer for database record in order to restrict misuse of the lost cheques.

VOLUME OF WORK HANDLED: In this assessment it is noted that how much volume of task or work is being handled by employee and on the basis of volume of work handled the employee gets points of achievement against the block in appraisal form.

ACCURACY & ATTENTION TO DETAIL: In this job it is indicated that how much an employee is attentive and accurate in noting down the job whether he/she is performing at desired level or not.

WILLINGNESS AND ABILITY TO WORK WITH OTHER PEOPLE/UNIT: In this section it is noted that how much the employee is willing and how much he/she has the ability and quality to perform well in the group of people or unit and it is determined is he/she is able to perform in the group or not if a group task or assignment is given.


ABILITY TO WRITE EFFECTIVELY: In this assessment it is noted that how much employee has effective skills of writing which matters in reporting or hand written application.

ADOPTABILITY OF NEW ASSIGNMENTS: In this job it is determined how much employee is able adopt new assignments related to his/her job. Does he/she have ability to adopt new challenges in his/her job?

DEPOSIT MOBILIZATION/SAVING/CURRENT CPDC ETC: In this factor it is assessed that how much the employee is responsible for depositing certificates of saving, current and CPDC (Crore Pati Deposit Certificate) purchased by customers.

NUMBER OF FRESH ACCOUNT ARRANGED: In this job the employee is to arrange new accounts by feed the data in the database system and issuing cheques books. In this assessment it is appraised that how much the employee has arranged newly opened accounts and on the basis of number the employee is granted with grade on the appraisal sheet.

REDUCTION IN CUSTOMER COMPLAINT: This job is related with customer service member. In appraisal it is defined how many complaints of customers are reduced by employee.

HAJ APPLICATION TARGET: This job is related with Islamic Banking section of HBL. Each employee is given with the target of submission Haj application. On the basis of submitted target Haj application employee gets point ratings on appraisal form.

TIMELY BALANCING OF BRANCH LEDGER/BOOKS: In this job employee has to balance the branch ledger on the daily basis. On the basis of balancing of ledger in time the employee is given grade points on appraisal sheet.

ACCURACY IN COUNTING/CASH HANDLING & COUNTING SPEED: This determines that how much employee is able to count or handle the cash efficiently and how fast cash is counted by the employee.

DISPATCH OF REQUISITE STATEMENTS: In the bank the employee of related job is to dispatch the balanced Ledger/Books, financial statements and number of accounts before authority of branch on monthly basis. While appraising employee it is defined that how much he/she is efficient and punctual in his/her job.

MAINTENANCE OF GUNS IN ORDER: In this assessment it is determined that how much the employee is active in performing the order of his/her head. The obedience of the employee to his/her head in the bank task is counted in this assessment.

ZERO THEFT: In assessment the employee is assessed according to handling of his/her honesty in his/her job. It is counted that how much he/she has been committed with theft in performing job.

DELIVERY OF LETTER/DAK IN TIME: This job is about the deliverer of letter/Dak to the one bank to other banks, one branch to other branches of HBL and dispatch of


cheques to State Bank. The employee is graded with points according to punctuality in delivery in the appraisal form.

QUALITY OF WORK: In this assessment the employee is given with grade points according to quality of his/her performance in his/her specific job.

SPEED OF WORK: In the assessment of job this factor shows that how much fast and efficient an employee is in performing his/her task related to his/her field.

FILING AND RECORD KEEPING: In this job the employee is to file and record the data of customer for database. According to effectiveness of record keep employee gets points in appraisal form.

TYPING/DATA ENTRY SPEED: This is about computerized record keeping. In this factor it is assessed that how much the employee has speed in typing data.

TYPING/DATA ENTRY ACCURACY: In record keeping it is noted that how much accurate the employee is in typing data for database.

B-INDIVIDUAL ATTRIBUTES:

This area of factor is about the employee’s attribute or properties in performing job.

Followings are factors of individual attributes;

PROFESSIONAL/TECHNICAL KNOWLEDGE & COMPETENCY: In this attribute it is checked that how much the employee has professional skills about his/her job and how much he/she is competent has technical knowledge about his/her job in the bank.

INITIATIVE (EAGERNESS TO LEARN, ENLARGE KNOWLEDGE): In this factor it is noted that how much employee is eager to learn new thing about job and how much he/she is interested in enlarging knowledge of job. Initiative factor is very important in job field cause initiate new task in the field is good attribute of professional employee.

REACTION TO RESPONSIBILITY: In this attribute it is assessed that how the employee reacts when some responsibility is given to him, it is noted whether he/she reacts warmly and professionally or considers new responsibility as a burden.

SENSE OF RESPONSIBILITY: in this attribute it is assessed that how the employee takes the responsibility whether takes it professionally and serious or carelessly.

ORAL COMMUNICATION ABILITY: In this factor it is assessed that how much employee has ability to communicate orally with the customers and head. Speaking skills are counted in this appraisal.

WRITTEN COMMUNICATION ABILITY: In this attribute the ability and writing skills of employee is assessed.


SORTING NOTES: In this factor the ability of sorting and handling of currency notes are judged. It is assessed that whether employee is sorting notes according to sequence.

CASH EXCESS/SHORTAGE SITUATION: Cash handling is noted in this factor. It is a negative appraisal. Some time employee gives or receives more or less amount by customers, if he/she gives more than real amount then he/she has to compensate this money from his/her own pocket.

PERFORMING UNDER PRESSURE: In this factor the performance of employee is assessed under pressure situation. It is checked that how much he/she is capable and confident to perform under pressure circumstances.

ABILITY TO WORK WITHOUT SUPERVISION: In this factor it is checked that how much the employee is able to perform his/her duty efficiently without supervision and it is also assessed that whether supervisor has to keep eye on his/her to get the work one.

WILLING TO WORK AFTER OFFICE HOURS: In this factor it is noted that how much employee is dedicated towards his/her job even after office hours.

C-TECHNOLOGY:

This is the area of appraisal in which the capability of using of technology of employee is assessed. Followings are major factors of area of technology

KNOWLEDGE OF COMPUTER: The knowledge of using of computer is counted in this factor.

KNOWLEDGE OF E-MAIL & INTERNET: The knowledge of internet and sending/receiving is assessed in this factor of technology area.

D-CUSTOMER SERVICE:

This is the area of appraisal in which the motivational and dedicated level of employee toward customer service is assessed. Followings are factors of this area;

COURTESY TO CUSTOMERS: in this factor of customer service area it is assessed that how much employee is courteous towards customers, whether he/she is deals with customers politely or harshly.

RAPPORT WITH CUSTOMER: In this factor it is assessed that whether employee cashes the cheques of customer within time or he/she makes customers wait due to his/her personal gossips etc.

CREATIVE RESPONSE TO CUSTOMER’S NEEDS: In this factor it is judged that how creatively and professionally the employee responses to customer’s needs regarding banking system.

Business sense: This factor determines the sense of employee regarding business that whether he/she knows about economic terms and their uses.


E- PERSONAL:

This is the area in which personality of employee is evaluated. Factors of this area are as following;

HEALTH & ENERGY: In this factor of personal area physical and mental health of employee is evaluated and also the use energy of performing in job.

APPEARANCE: In this factor the appearance of employee is counted. The dress code and manner of dressing is assessed.

INTEGRITY AND LOYALTY: In this factor the loyalty and integrity of employee is assessed. The dedication and commitment of employee while performing duty is counted. Honesty and faithfulness with job and company is also assessed.

GROOMING: In this factor the development and grooming of employee’s personality is counted.

MANNER OR SPEECH: In this factor of personality the manner of speech or manner of talking to others are assessed. Manner of speech should be polite and understandable.

ATTITUDE: In this factor the employee gets point on the basis of positive and professional attitude in his/her personal life.

INTELLIGENCE: In this factor of personality the intelligence of employee is evaluated.

ATTENDANCE RECORD/LEAVE RECORD/PUNCTUALITY: The employee is given grade points on the basis of regular and timely attendance according to time table.

Its importance of Performance Appraisal at HBL is as follows:

It provides systematic judgments to support salary increases, promotions, transfers, and also demotion and termination.

It is a mean of telling subordinates how they are doing their job. It furnishes a useful basis for the coaching and counseling of individuals by

superiors.


PERFORMANCE APPRAISAL AT BANK ALFALAH

INTRODUCTIONBank Alfalah’s performance appraisal system is improved and upgraded from time to time in line with the Bank’s requirements, as well as with industry practices. HRD keeps all units of the Bank informed of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, periodic monitoring and final appraisals.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Improving the performance of the Bank and its staff members Laying a solid foundation for relationships between staff and management

Clarifying performance targets for all

Using the process for career planning and professional development of staff

Review of salary, assignment and career path

Award of bonus(es)

Provide a basis for Promotion to higher salary ranges and functional responsibilities.

ROLE OF IMMEDIATE SUPERVISOR AND BRANCH MANAGER / UNIT HEADDetailed guidelines are issued by HRD by the end of each year regarding Performance Appraisal of all employees for the year.

SALARY INCREMENTS/ADJUSTMENTS & PERFORMANCE BONUS (ES)

Review of salary and allowances, which is based on previous year’s performance, is carried out once a year during the first quarter of every year. The Bank’s performance appraisal (PA) system is primarily based on goal setting in the beginning of a year, monitoring by supervising officers on bi-annual basis and final evaluation, using standardized performance appraisal forms at the end of the year. Some weight age is also given to evaluation of enabling personal skills and personality traits, as listed in the Appraisal Form.

Appraisal exercise is done only for those employees who have completed six months’ service with the Bank on 31st December and whose appraisal forms have been received from their respective offices within the specified time limit.

The extent of salary increases will depend on the system and formulae adopted by the Bank’s Management for the year in question.


With reference to salary levels prevalent in the Bank and in the marketplace, salaries of certain key staff members may be adjusted during the appraisal exercise. This will be done in consultation with concerned Branch Manager/Area Manager/Executive-in-Charges

To reward high performance during the period under review, performance bonuses may be awarded to deserving officers based on their performance rating.

PROMOTION TO HIGHER GRADES

PROMOTION TO HIGHER GRADES DEPENDS UPON THE FOLLOWING THREE FACTORS :

Bank’s overall policy of promoting certain number of people in specified salary ranges to maintain a balance between number of employees in various ranges.

Requirements emanating from operating units for staff of higher seniority to suit their operational needs, based on their current assignment.

PROMOTION PROCEDURE

The promotion procedure revolves around the following two activities, which are to be completed and recorded as described below.

PROMOTION INTERVIEWInterviews for promotions to specified positions in the branches is conducted by one or more of the following officers of the Bank as elaborated below:

Branch Manager (BM)/Chief Manager (CM), Area Manager (AM), Executive-in-Charge (EI).

For promotion to 1 st Interview 2 nd Interview 3 rd Interview Ranges I, II & III BM / CM AM -Ranges IV, V & VI

BM / CM AM EI – HRD

Ranges VII & VIII

AM CEO & / or EI – St. Planning

Promotion interviews for Head Office staff will be conducted as follows

For promotion to 1 st Interview 2 nd Interview 3 rd Interview Ranges I, II & III Head of Dept. Concerned EI ---Ranges IV, V & VI

Head of Dept. Concerned EI EI – HRD

Ranges VII & VIII

CEO --- ---


Range IX CEO --- ---

OUR SUGGESTIONS FOR BETTERMENT OF HBL AND BANK ALFALAH:

RECOMMENDATIONS FOR HBL

1. It has reduced its staff strength resulting in reduction its administrative cost.

The resources should be directed for upgrading branches.

2. It is hiring/recruiting professionals in middle and lower management to achieve organizational goal. Fresh graduates from the universities preferably IBA /LUMS are being offered jobs. It is providing job opportunities at different levels. On job training and job rotation for the employees is ensured.

HBL should recruit from all the universities. Written test should be compulsory for all the fresh graduates.

3. HBL should use Human Resource Inventory System.

4. 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.

5. The process of promotion at HBL is slow so they should maximize the promotion

process which would be source of motivation for their employees.


CONTROL PROCESS

The control process is a continuous flow between measuring, comparing and action. There are four steps in the control process. Establishing performance standards measuring actual performance, comparing measured performance against established standards, and taking corrective action.

Step 1: Establish Performance Standards

Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time.

Step 2: Measure Actual Performance

Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, inspection reports, Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.

Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people. Supervisors have access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic or computer-driven control systems. Impersonal measurements can count, time, and record employee performance.

Step 3: Compare Measured Performance against Established Standards


Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4: Take Corrective Action

The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient; however basic corrective action is the more effective.

BANK ALFALAH

PERFECTION IS ONLY THE CLAIM OF ALLAH ALMIGHTY. NO OTHER BEING LIVING OR DEAD CAN SAY THIS FOR ITSELF. SIMILARLY, BANK ALFALAH ALSO HAS SOME SHORTCOMINGS THAT NEED TO BE MENTIONED:

Most of the employees are overloaded with work

Disproportionate presence of Old Staff in the upper management Hierarchy

Skill Set Of Employees Is Not Up to The mark as there is no job rotation

Less efficient computer and I.T system which creates problem for employees

There is uneven distribution of work and promotions are not very timely

It is slow in the introduction of new services

RECOMMENDATIONS

Employees shouldn’t be over loaded with work. They must be given work accordingly and sequence wise. They must be given work according to their schedule and with the point of view that they can handle the task easily.

corresponding presence of Old Staff should be there in the upper management Hierarchy

job rotation must e done to enhance the skill set of employee and so that they can reach up to the mark


Technology awareness should be provided in the bank. Staff should e provide with efficient computer and I.T system in order to avoid problem for employees

equal distribution of work and promotions are must be very timely as it will create awareness and stop turnover

It must be fast in the introduction of new services

COMPENSATION AND INCENTIVES

The salaries, rewards, bonuses, and incentives on the basis of job and performances

are compensations.

COMPENSATION AT HBL: Normally people join HBL because of its

brand and not the compensation. After

privatization the HBL has changed a lot

in terms of compensation. It has been

seen in all the Aga Khan’s Organization

that they provide the excellent culture to

their employees but their salary and

compensation packages are not so attractive. HBL has also one strategy that has been

seen in many years after privatization that they offer incentive to their left employees

when it fired a massive number of employees without any sensible reason. They frame

reasons to answer the corporate world but they are not sensible. To overcome the

anger of the remaining employees they offer cash incentives to the remaining

employees so that they can forget the past and work for the better future. We also want

to mention one more inhumane practice of HBL that they are constantly firing the old

employees and hiring the new ones. They prefer new employees now but their

operation cannot run by the new employees because the old employees have more

skills.

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 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 (no Eid

bonus).

Indirect financial payments: This mode of payment is

not related to cash payments like medical, insurance,

residence, car, car fuel etc.

DIRECT and INDIRECT FINANCAL PAYMENTS

The date of disbursement of salary was same in both the banks i.e. 26 th/ 27th of each month.

The advance against salary is provided in case of emergency and if the staff member is proceeding on leave and next payday falls during vacation period. This practice is followed at Alfalah but not at HBL.

The AVP’s at HBL can take one daily newspaper. They have to show the bill to the bank to have the amount. This is not in their salary package at Alfalah this is included in their salary package. The SVP’s and above at HBL can take any 2 daily newspapers.

Group Heads and General Managers are eligible to have one corporate club membership at their place of posting that includes joining fee of one approved club plus fixed monthly fees for self and family. This is followed at both the banks. HBL gave Rs. 5 lac for membership.

Both the bank provides job related fuel entitlement to their employees. This varies from position to position not from the distance to the office and is included in the salary package. This fluctuates according to the fuel price in the market.


At Alfalah Hospitalization Insurance Coverage for Employees (below 60) and their dependent Parents, Spouse and Children. Employees who are above 60 are provided hospitalization insurance to themselves only. HBL does not provide any type of insurance to the parents of the employee.

At Alfalah regular employees, their parents, spouses and children suffering from serious illness (see list below) are entitled for reimbursements of cost of medicines, lab tests and consultation fee subject to the following.

1. If the treatment is likely to continue for a minimum period of six months or more.2. If the treatment expenses for one month are equivalent to 10% or more of the

monthly Basic Salary of the concerned employee.

These claims will be lodged to HRD on Follow-up Expenses Claim Form as per along with medical bills, doctor’s prescriptions etc.

List of Diseases Eligible for Follow-up Treatment

Cardiovascular disorders Strokes

Cancer

Multiple Scleroses

Hepatitis B & C

Major burns

Any other disease, as approved by Management, may be added to the list)

Dependents (Hospitalization and Follow-up Treatment)

In case of working spouse (if not covered under insurance from his/her employer), will be eligible for coverage from the Bank.

Working parents are not considered “dependents” and therefore are not entitled for coverage. They will be eligible only if they are fully dependent and live with the officer.

Unmarried / Widowed / Divorced daughters, living with parents will be allowed insurance facility without age limit.

Male children above 25 years of age are not covered under bank’s hospitalization policy.


Male children below 25 years but married or engaged in gainful employment are also not covered under this policy.

At HBL

HBL provides no follow up treatment to the employee’s parents no matter they are totally dependent on the employee or not and also no matter on the nature of disease. It provides the hospitalization and follow up treatment to the employee’s spouse and children only in case they are hospitalized. If they are not no cost of medicines, lab tests and consultation fee is provide to them. The HBL however provide the cost of insulin and other major diseases which they have to take daily to the employee. The medical allowance in the salary of the HBL employees is also not satisfactory.

There is a huge difference in salaries of new and old employees. New staff is given more salary than the old ones. Similarly, annual increase in salary of new employees is more than the old staff.

All permanent confirmed employees are eligible for membership of Bank Alfalah Ltd. Employee Provident Fund Scheme. An employee contributed an amount equivalent to one month’s basic salary in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an equivalent amount iscontributed by the Bank. PF deduction will continue to be made from monthly salary even if an employee has resigned and is working during the notice period. Membership of PF Scheme will be automatically cancelled on the last working day of the notice period.

HBL had this scheme before privatization but after few years of privitzation HBL changed its policy. The PF is settled on the date. Means the employees would get the PF after their retirement on the basis of the gross salary of a particular date.

All those who have not availed furniture facility at BAL can draw furniture allowance w.e.f. 1st January, 2007 as per following details.

Range AllowanceIV – VI 2,750VII 4,500VIII 6,500IX 9,500


HBL only provide the furniture allowance to the employees when they get promotion.

REWARDS

HBL Units:

HBL has given about 12000 units at 10 each to its permanent employees which is enough for them at the time of leaving the bank or on retirement.

Profit Shared:

Profit shared through three bonuses to the employee is ensured in HBL.

Employer Stock Ownership:

HBL was given shares to selected employee while the stock was subscribed to the general public in Sep 2007.

Rewards System:

Pay For Performance:

Annual increase in salary of employee is based on slogan of “Pay for Performance”. More jobs perform the organization pay. Cash awards are also given to employees.

Bank Alfalah encourages its officers and staff to enhance their professional competence to meet the growing challenges of the financial industry. Part of the cost of registration/admission/exam fees is reimbursed to those employees who undertake and successfully complete higher degrees and professional courses related to banking and finance (from recognized institutions) to improve their competence and qualifications. Where as HBL has more improved policy here. It provides full cost of registration/admission/exam/ semester fee to their employees. If they fail in any course the bank would not provide the fees. Many employees have completed their law and business administration studies from recognized institutions (law from SM Law College, MBA from SZABIST).

Both the banks provide almost same life Insurance policies for employees.

Marriage grant to employee’s two daughters is given.

There are total of 100 monthly scholarships available for employees’ children. The amount varies from the level of the studies.


At HBL Plaza the canteen token is of Rs. 30 rest of the money is added by the bank. The quality and quantity of food is excellent.


RECOMMENDATIONS FOR HBL REALATED TO COMPENSATION AND INCENTIVE PLANS

HBL should provide the medical coverage to the employee’s parents.

HBL should also review its medical coverage policy. It provides the medical coverage to its employees when they are hospitalizing only. HBL also do not provide the free medical test coverage even if the test is done by the AKUH.

The medical coverage they are giving with the monthly salary is very less. They should revise it because the inflation is going up.

The PF scheme need to revise as it is de motivating the employees. It should be like other banks in the market. The old employees joined the HBL because it was a government institute and provides the PF to the retire employees. Due to this new policy they are still in anger because according to them the inflation is going up how they can spend their lives with little money in hand after their retirement as it has been settled by the bank.

The fuel entitlement should be provided on the position as well as the employee’s residence distance from the work place.

The Eid bonuses should be provided by both the banks. Giving the amount in monthly salary is not a good practice. If the employees get a lump some money near Eid it would be easier for the employees to celebrate the Eid with full zeal.


APPENDIX


FORM A

HABIB BANK LIMITED

PERFORMANCE APPRAISAL FOR THE PERIOD FROM to

FOR EXECUTIVES & OFFICERS

(To be filled in by the Appraisee / Appraiser)

Name Branch ____________________ Date of Birth Region _____________________

Personnel # Department ___

Designation ___________ Division ________________

Job Title Group

Date of Joining Last Promotion

Academic Qualification

Professional Qualification

Jobs held in 2005 Job: Period From Jan. to December

Job _ Period From

Reports to

Appraiser’s Job Title


APPRAISEE’S KEY RESPONSIBILITIES AT THE BEGINNING OF THE YEAR


FORM B

HABIB BANK LIMITED

PERFORMANCE APPRAISAL FOR THE PERIOD FROM JAN 01. 2005 TO DEC. 31, 2005

FOR EXECUTIVES & OFFICERS.

APPRAISAL BY OBJECTIVE (ABO)

Group: Region/Division:

Name of Appraisee (Employee): Personnel #:

Designation: Place of Posting:

S #

SMART OBJECTIVES / TARGETS ACTUAL RESULTS/COMMENTS

RATING

**

Objective Factors

(Key Performance Indicators)

Assigned Targets

Market/

Industry Growth*

Mid Year Results

Final

Results

Comments (if Any)

1 To draw an annual comprehensive plan for audit of all overseas branches for approval of the Group Management/audit Committee of Board of Directors (in coordination with Head of Audit)

2 Selection of audit teams for implementation of the approved plan (in consultation with divisional Head Audit/Group Head)

3 To implement the approved Audit Plan as per schedule by supervising suitable travelling arrangements. To assist the teams in planning pre-audit activities.

4 To ensure visible improvement in contents and presentation of audit reports.


5 Supervise implementation of corrective action tracking system for resolution of issues.

6 To maintain of record of Regulatory rules, Regulatory reports issued by Central banks and external auditors reports at overseas locations procured through IBG.

*Mention Market / Industry Growth Rates in your area of operations (if applicable) Total Points

ABO Average

ABO Average = Total Points / No. of Objectives. **Mention Ratings in whole numbers

_________________________________________________________________

Appraisee’s Signature Appraiser’s Signature

(Name: ) (Name: )

Dated: Dated _______________________

RATING CHART

Category Rating Description

Exceeding All Targets / objectives Always exceeds targets/objectives/expectations/parameters of the assigned task (at least by 20% and above)

Exceeding Most Targets / Objectives Exceeds targets/objectives/expectations/parameters of most of the assigned task (at least by 15% and above)

Exceeding Some Targets/objectives Exceeds targets/objectives/expectations/ parameters of some of the assigned task (at least by 10% and above.

Meeting All Objectives Targets/Objectives. Meets all the targets/objectives/expectations/parameters of the assigned task (by 100%)

Missing Some Objectives Targets/objectives Meeting almost all the targets/objectives/expectations/parameters of the assigned task (variation upto 10%)

Missing Many Objectives Targets / Objectives Does not meet all the targets/objectives/expectations/parameters of the assigned task (variations below – 10%)

Please Note: In case of individuals achieving scores higher than 3 please provide specific reasons (attach if required)


FORM CHABIB BANK LIMITED

PERFORMANCE APPRAISAL FOR THE PERIOD FROM TO

FOR EXECUTIVES & OFFICERSAPPRAISAL BY ABILITY (ABA)

S # JOB COMPETENCIES COMMENTS (If any) SUB RATING RATING*

1 JOB KNOWLEDGE

Specific to Profession:

*Understanding of job responsibilities.

*Methods, Techniques & skills (technical concepts)

Specific to Company:

*Knowledge related to field (products & services)

*Laws, Regulations, Policies & Procedures applicable.

Acquisition of Knowledge:

*Enhance present knowledge base related to the market

*Technical & other skills

2 COMMUNICATION

Written:

*Organizes thoughts & ideas clearly & concisely

*Use written words & phrases in accurate manner appropriate for the users / readers

Oral:

*Communicates ideas, thoughts & information clearly

& concisely

*Demonstrates command over language


3 INTERPERSONAL EFFECTIVENESS

*Respects opinions, abilities & contributions of others

*Tactful, cooperative & open minded

*Exhibits & practices team work.

4 INITIATIVE

*Self motivated

*Resourceful & independent

*Identify new techniques/methods for accomplishing goals

*Reducing cost & improving quality/efficiency of the present

system.

5 FLEXIBILITY

*Adaptable, open to new ideas & implements/accepts change

6 LEADERSHIP

*Demonstrate leadership

*Strategic thinking

*Decision making / problem solving

*Integrity & ethics

*Rating = Total scores (in whole numbers)obtained in a set of applicable competencies

No. of applicable competencies.

ABA Average = Total Points / No. of Competencies.

Total Points

ABA Average

______ ____________________ ______________________________

Appraisee’s Signature Appraiser’s Signature

RATING CHART

Category Rating Description

Exceeding All Competencies 5 Performance exceeds the required standards at all times – little room for improvements. Highest level of competencies demonstrated.

Exceeding Most Competencies 4 Performance exceeds the required standards most of the time in accomplishing target/objectives/parameters of the assigned task.


Competencies can be further developed as the nature of the job evolves.

Exceeding Some Competencies 3 Sometimes exceeds the performance expectations. Also has the potential to further develop these competencies.

Meeting All Competencies 2 Performance is consistent & meets requirements of the assigned task.

Missing Some Competencies 1 Performance is inconsistent & behaviour sometimes doesn’t meet the basic requirements. Some of the competencies required for the job position are in the process of being learnt.


FORM D

HABIB BANK LIMITED

PERFORMANCE APPRAISAL FOR THE PERIOD FROM TO

DEVELOPMENT PLANS

Group: Region/Division:

Name of Appraisee (Employee): Personnel # : _____________

Designation: Place of Posting:

Training attended during the year

(1) Conducting Powerful Interviews.

(2) Best HR Practices.

(3) Introduction to MISYS.

Appraisee’s Strength (Mention specific skills)

Developmental Needs / Plans (Identify specific training needs)


OVERALL POINTS ACHIEVED

CALCULATIONS:

Weighted Performance Mean (WPM) = 75% * ABO Average + 25% * ABA Average

__________________ + __________________

Overall Performance Points achieved __________________________________

Note: No rounding of numbers, mention upto 2 decimal places.

Please Note: In case of individuals achieving overall rating higher than 3 please provide specific reasons

(attach if required)

_____________________________________ __________________________

Appraiser’s Signature Appraisee’s Signature

Name:____________________ Name: ____________________

Designation: SVP Designation: SVP


Name:_____________________________

Designation:______________________ Reviewer’s Signature


HBL and STANDARD CHARTERED

Documents

zia of hbl

amna yousuf management

hr manual of bank alfalah

saeed of bank alfalah

targeted company alafalah

hr head of hbl

hr system of targeted

anjum shaheen of hbl