Managment project hbl group 6

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

2 | P a g e U N I V E R S I T Y O F G U J R A T

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.


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


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


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


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.


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.


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


http://www.HBL.com/

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


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


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.


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.


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


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.


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


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.


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.


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


http://www.google.com/

http://www.hbl.com.pk/

Managment project hbl group 6

Business

goal setting

final settlement

international

habib bank

human resource

developed

staff finance

head office