Project assignment of Principle of Management

Submitted By

1. MUHAMMAD SAQIB ALI (BUS-20F-126)

2. SHAMS UDDIN (BUS-20F-106)
3. HAMMAD KHAN (BUS-20F-033)

Class: BBA4 Year- 2A

Submitted to: Dr. Saima Tabasum
Date: 21-06-2021

ORGANIZATION NAME: HABIB BANK LIMITED

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TABLE OF CONTENTS:

1. EXECUTIVE SUMMARY ……………………………………………………………………………………….. 3

2. INTRODUCTION ………………………………………………………………………………………………….. 4
3. BELONGING TO SECTOR ……………………………………………………………………………………… 4
4. MARKET POSITION ……………………………………………………………………………………………… 4
5. MISSION STATEMENT …………………………………………………………………………………………. 5
6. VISSION STATEMENT ………………………………………………………………………………………..... 5
7. VALUES OF HBL …………………………………………………………………………………………………… 5
8. ORGANIZATIONAL STRUCTURE OF HBL ………………………………………………………………. 5
9. JOB ANALYSIS ……………………………………………………………………………………………………… 6
9.1 Individual interview method ……………………………………………………………………….. 6
9.2 Questionnaire method ………………………………………………………………………………… 6
9.3 Job description ……………………………………………………………………………………………. 6
9.4 Job specification …………………………………………………………………………………………..7
9.5 Example ………………………………………………………………………………………………………. 8
10. RECRUITMENT PROCESS …………………………………………………………………………………….. 9
10.1 Analysis of positions and requirement ……………………………………………………… 9
10.2 Identify candidates …………………………………………………………………………………… 9
10.3 Finding internal candidates …………………………………………………………………….. 10
11. SELECTION PROCESS …………………………………………………………………………………………..10
11.1 Test/ interview ………………………………………………………………………………………..10
11.2 Selection interview ………………………………………………………………………………….11
11.3 Final selection ………………………………………………………………………………………….11
12. TRAINING AND DEVELOPMENT …………………………………………………………………………..12
12.1 Training methods by HBL …………………………………………………………………………12
12.2 Training and development programs at HBL …………………………………………….13
13. PERFORMANCE EVALUATION ……………………………………………………………………………..14
13.1 Methods used by HBL …………………………………………………………………………………15
14. EQUAL EMPLOYEE OPPORTUNITY ……………………………………………………………………….19
15. COMPENSATION ………………………………………………………………………………………………….19
16. EMPLOYEE RELATIONS ………………………………………………………………………………………. 20
17. CONCLUSION ………………………………………………………………………………………………………20
18. REFERENCES ……………………………………………………………………………………………………….21

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EXECUTIVE SUMMARY:
Habib Bank Limited is a Pakistanimultinationalbankbased inHabib Bank
Plaza,Karachi,Pakistan. It isowned byAga Khan Fund for Economic Developmentand is
thelargest bankby assets in Pakistan.Founded in 1941, HBL became Pakistan's first
commercial bank. In 1951 it opened its first internationalbranch inColombo,Sri Lanka. In
1972 the bank moved its headquarters to theHabib Bank Plaza, whichbecame the tallest
building in South Asia at the time. The Government nationalised the bank in 1974
andprivatized it in 2003; at that time theAga Khan Fund for Economic Developmentacquired
a controllingshare.This report was constructed by the students of Iqra University with the
help of primary and secondarydata.The recruitment and selection process starts with
employment planning. This procedure of deciding what positions the rigid will have to fill,
and how to fill up them. Personnel or employment planning embraces allfuture positions,
from maintenance clerk to CEO.HBL’s Entry-Level Programs are structured to ensure that
you will quickly assume responsibility forconcrete tasks and important projects. Rotational
assignments across different business units provide acomprehensive and valuable experience
in a relatively short amount of time.Training is the process of teaching new employees the
basic skills they need to perform their jobs anddevelopment is result of that training. For
training and developing HBL follows five steps process oftraining and development.A
process that consolidates goal settings, performance appraisal, and development into a single
commonsystem to ensure that employee’s performance is according to company’s aims is
called performancemanagement.This report summarise all the major duties perform by
human Resource department of HBL and thisreport also contain all the details, which are
used from hiring an employee to firing it and also containsthe process and even the crucial
detail that the use for recruiting and performance appraisal

2. INTRODUCTION:
HBL, Pakistan’s largest bank, was the primary bank to be established in Asian nation in
1947. Over the years, HBL has mature its branch network and maintained its position because
the largest non-public sector bank in Asian nation with over 1700 branches and a pair of
2000+ ATMs globally, serving twenty seven million customers across 3 continents.In 1951 it
opened its first international branch in Colombo, Sri Lanka. In 1972 the bank moved its
administrative center to the Habib Bank Plaza, which turned into the tallest structure in South
Asia at that point. The Government openly possessed the bank in 1974 and privatized it in
2003; around then the Aga Khan Fund for Economic Development gained a controlling offer.
By April 2015, the Government of Pakistan stripped its whole shareholding of 41.5% through
the Privatization Commission of Pakistan, making HBL Pakistan's biggest private Bank. HBL
has not recently been a pioneer in the financial business, yet has additionally been a stage that
has empowered dreams for a huge number of individuals. It has over and over, demonstrated
to be an impetus for change by drives that have raised Pakistan's picture and notoriety. From
bringing back worldwide cricket to Pakistan through HBLPSL, to reinforcing the economy of
the country through notable drives, for example, the Ehsaas Emergency Cash Program, HBL
keeps on improving lives.

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3. BELONG TO SECTOR:
Habib bank limited belongs to banking sector.

4. MARKET POSITION:
HBL has total 1,466,852,508 shares in Pakistan stock exchange.The current price of share of
HBL is Rs 132.54. It has a domestic market share of over 40%. It continues to dominate the
commercial banking sector with a major market share in inward foreign remittances (55%)
and loans tosmallindustries, traders andfarmers.

5. MISSION STATEMENT:
"To make our customers prosper, our staff excel and create value for shareholders"

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6. VISION STATEMENT:
"Enabling people to advance with confidence and success"

7. VALUES OF HBL:
Integrity - Be Ethical and Fair
Customer Centric - Deliver Great Experiences
Value People - Respect, Empower, Appreciate
Progressive - Innovate and Challenge
Excellence - Be your best

8. ORGANIZATION STRUCTURE OF HBL:

The position of the staff is as the following order – Top to bottom
General Manager – II
General Manager – I
Deputy General Manager – II
Deputy General Manager – I
Senior Manager – II
Senior Manager – I
Assistant Manager – II
Assistant Manager- I
Officer – II
Officer – I
Assistant

HUMAN RESOURCE MANAGEMENT IN HBL:

HBL has very energetic and one of the most excellent HR department in Pakistan as well as
globally. The structures as the President is assisted by ten Senior Executive Vice-Presidents
and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents,
831 Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers
Grade-III and 10658 Clerical/Non-Clerical employees.

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9. JOB ANALYSIS:
HBL takes Job analysis services from Sidat Hyder Morshed Association (SHMA) which is
the biggest HR consulting firm in Pakistan. The methods which are used in collecting job
study information are

 Individual discussion method.

 Questionnaires method

9.1 INTERVIEW METHOD:

HBL prefer interview method more, rather than questionnaire and observation methods. The
HBL thinks that this method is effective for assessing what a job entails, needs, and involving
employees in the job analysis is essential. Individual employees, group of employees and
supervisors with vast knowledge about jobs are interviewed so HBL preferred interview
method first.

9.2 QUESTIONNARE METHOD:

In questionnaire, employees have to fill out the questions to describe their job related duties
and responsibilities.

9.3 JOB DESCRIPTION:

After getting job analysis information the next step is to describe job description which
contains the points of job identification, job summary, chain of command relationships,
responsibilities and duties, standard occupational classifications and standard of performance
and working conditions.

9.4 JOB SPECIFICATION:

After formulating job description the next step taken is job specification in which the traits of
employees are defined who are assumed suitable for the job. Identifies the knowledge, skills,
education, experience, certification and abilities needed to do the job efficiently as HBL
specialized their employees through training and HBL take more work from them and they
give good response to organization and give work efficiently. What approach of job
specification HBL used? (Either focuses on the skills and potential or on the education and
qualification?) We asked this question from HR Recruitment Department and they said HBL
used both skill & Qualification. HBL need only those employees who are skilled or qualified.

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Here Is The EXAMPLE OF JOB DESCRIPTION AND JOB SPECIFICATION
OF HBL
Job Description:
The Primary responsibilities of a Branch Manager are to establish and maintain customer
relationship and identify prosperous market for both assets and liabilities. They need to
strategize to achieve multi-dimensional growth targets within reasonable time-lines &
approved budget.

Core Responsibilities:
 Implement strategies for deposit mobilization & achievement of Advances & Liability
targets assigned

 Increase and monitor cross selling targets

 Interact with identified current & prospective clients to increase share of wallet

 Ensure timely internal/external audit/compliance reviews to be conducted accurately

 Manage operations to maximize human and automated resources to achieve

productivity

 Ensure timely regulatory reporting to State Bank of Pakistan and review branch MIS
reports.

The Candidates applying for this job must have the following information on
their CVs:
 Date of Birth

 Qualification

 Division/GPA

 Institution

 CNIC No

 Contact Number

 Employment History

 Complete Address along with name of city/district

Job Details

Industry:

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Banking/Financial Services

Functional Area:

Retail

Job Type:

Full Time/Permanent

Job Location:

Karachi, Lahore, Pakistan

Gender:

No Preference

Minimum Education:

Bachelors

Degree Title:

Minimum Bachelor’s Degree from an HEC recognized institute.

Career Level:

Department Head

Minimum Experience:

3 Years (3-5 Years of experience in banking sector)

Work Permit:

Pakistan

Apply Before:

Feb 07, 2015

Posting Date:

Nov 06, 2014

10. RECRUITMENTPROCESS:
The diagram below shows the recruitment and selection process of HBL.

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In recruitment process
first of all planning
session is occurred, in
planning session it is
determined that which
section HBL will have to fill and how to fill. If there is a vacancy of executive job then
succession planning is done for filling that vacant place.

10.1 Analysis of positions and requirement:

After planning it is analyzed that which position is going to be filled and the requirement is
analyze by job analysis.

10.2 Identify candidates:

HBL identifies  its candidates by developing the criteria
of job description and jobspecification and acting upon these criteria job vacancy ads are
spread through different Medias like newspapers and internet.

Outside sources for recruitment are:

1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc)
2. Trade and professional journals (Aurora Magazine)
3. Internet job sites (rozee.pk)

10.3 Finding internal candidates:

In HBL if internal employees are hired, even then the proper selection process is followed for
them. HBL hire any other employment agency or do this task on their own? If yes, then for
which positions? If HBL do internal search then by their Own and from Low management to
top management.

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1. Job Posting

2. Rehiring former employees

3. Final Selection within the Organization

Job posting:
Related to job’s advertisement, HBL posted the job opportunity in their personal or internal
website.

Rehiring Former employees:

It is an internal hiring source. Rehiring the former employees is the process in which HBL
rehires the former employees. But this process is practiced very rarely.

Final Selection within the Organization:

After going through all the processes the best candidates according to HBL’s
selection boards are selected.

11. SELECTION PROCESS:

Selection process HBL follow is that Written test followed by panel interview. HBL prefer
Test & interview conducted while doing selection of new employees.

11.1 Test/ interview:

In this process short listed candidates are called for test and interview according to nature
of their applied jobs.

 Formats used in selection interview:

 Structured/Directed
 Unstructured/Non directed
 Modes of Interview:
 Panel interview
 Structured sequential interview
 Types of questions:
 Situational
 Job Related
 Stress
 Puzzled Questions

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11.2 Selection Interview:
Selection interview HBL is conducted for short listed candidates. A selection interview is
the procedure designed to predict future job performance on the basis of applicant’s oral
responses to oral inquiries.

 Yes, HBL are providing opportunity of initial screening to their candidates

 HBL are providing the realistic job preview to their candidates. Brochures,videos etc
source HBL are using these sources.

 Structred interviews HBL conduct for interviewing new candidates.

 We ask this question from the HR manager of HBL that what type of test you take
from the candidates? (written etc, work sampling, performance
simulation,assesseent centres) then he replied HBL used written test from the
candidates.

 Internal method in background investigation HBL follows for selection a new

candidate.

 Bound signtype of conditions HBL put while offering the conditional job.

11.3 Final Selection:

After going through all the processes the best candidates according to HBL’s selection
boards are selected.

12. TRAINING AND DEVELOPMENT

For training and developing HBL follows five steps process of training and development:

 Needs analysis: Identify job performance skills needed, assess prospective trainee’s
skills, and develop objectives.

 Instructional design: Produce the training program content, including workbooks,

exercises, and activities.

 Validation: Presenting (trying out) the training to a small representative audience.

 Implement the program: Actually training the targeted employee group.

 Evaluation: Assesses the program’s successes or failures.

12.1 TRAINING METHODS BY HBL:

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Training methods used by HBL:

 On-the-job Training
 Off-the-job Training
 Apprenticeship Training
 Informal learning
 Effective lectures

12.1.1 On-the-job Training:

Having a person learn a job by doing the job is OJT. Methods of OJT are:
 Coaching or understudy: It is done at all level of the jobs. It is the OJT
method in which employee is coached and taught by profession that how to
do the job in order to meet HBL’s goals and objectives. At managerial level
the trainee works directly with a senior manager or with the person he or she
is to replace; the latter responsible for the trainee's coaching.
 Job rotation: Moving a trainee from department to department to broaden
his or her experience and identify strong and weak points. HBL’s Manager
Associate program is used for job rotation training.
 Special assignments: These assignments are actually related to tasks within
the branch by achieving those tasks assigned by trainer, employee get
training.
 Action learning: Management of HBL trainees are allowed to work full-time
analyzing and solving problems in other departments.

12.1.2 Off-the-job Training:

It is method which is opposite to the OJT. In this method employee does not get
training at his/her work place. This level of training is only for managerial level
employees. These methods are:
 Case study methods: special case studies are given to employees which
contains some dilemma about banking sector. By solving those case study
problems employee gets training to take bold and effective decision in crucial
situations.
 Outside seminars: HBL encourages its employees to participate in the
seminars arranged by banking sectors not just in the Pakistan but also beyond
the borders. 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.

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 12.1.3 Apprenticeship Training:
A structured process by which employees become skilled workers through a
combination of classroom instruction and on-the-job training .It is actually
combination of OJT and lectures delivered to employees. In this method employee
is first given the lecture about his/her job and after that implementation of lecture
in practical field is observed.

12.1.4 Informal learning:

The majority of what employees learn on the job they learn through informal means
of performing their jobs on a daily basis.

12.1.5 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 sector and also told them how to achieve challenges.

12.2 TRAINING AND DEVELOPMENT PROGRAMS AT HBL:

HBL uses the following programs for trainingand development

 MANAGEMENT TRAINEE (MT): 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 training and
rotational program focused on dealing with banking requirements. It
providesaccelerated development opportunities across HBL's branch network of
Retail, corporate commercial banking.
 CASH OFFICERS: The program involves an extensive one-month training period
based on branch banking operation before placement in the branches. Graduates
from HEC recognized institutions with good communication and interpersonal skills
qualify for HBL's cash officers program.
 INTERNSHIPS: HBL's internship program offers promising students with the exciting
opportunity to apply their classroom learning experiences 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 identify their own competencies to build a successful career with HBL.

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13. PERFORMANCE EVALUATION:
HBL process of performance appraisal system is they define their expectations, and then
they measure or evaluate and provide feedback and hence their performance recorded.
They judge their employee on achieving the annual targets which have provided them to
achieve, even manager’s evaluate the performance of employee by behavior of employees
and punctuality and how productive they are, how knowledgeable employees are or are
they satisfying their employees by giving time to them and the way they dress up.

HBL has assigned different weight ages out of 100, employee doing more than 100 or
achieving target more than the benchmark that is an excellent job employee performing but
if employee performing average discussion takes place between manager and its
subordinate if employee becomes defensive, manager could easily sort out through his
managerial skills.

HR is responsible for training of supervisors to improve their appraisal skills.

13.1 METHODS USED BY HBL FOR PERFORMANCE APPRAISALS:

HBL uses 2 types of appraisal methods.

1. Forced distribution model:

Forced Distribution Method is also call bell curved. In this method they place given
percentages of ratees into different performance categories. By forced distribution
method as demonstrated by manager for example that manager must rate its
employees under him according to following distribution: 10% low, 20% below
average, 40%average, 20% above average, 10%high... It reflects the normal curve, a
small percentage of group is to be placed on (best and worst performers) larger
percentages of ratees are placed toward the middle of the performance distribution.
It is used for high executive level – Vice president and above him in HBL.A separate
bell curve is developed according to function/branch category/division and group.

2. Graphic scaling rating method:

 Managers are asked to score an individual against a number of objectives/attributes.
 HBL is using graphic rating scale method for its clerical staff to appraise them.
 HBL’s Graphic Rating Scale method appraisal form contains three sheets; one is
FORM B1, FORM B2, and FORM B3.

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Form B1: contains information about employees or the criteria through which employee
should appraise.

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Form B2: contains two points through which they evaluate performance, i.e., FACTORS
through which they determine if employee is productive or how the job is performing or the
employee knows how to use technology he is being assessed and to see how responsive an
employee towards customers is and motivated or dedicated to work and even employees
are appraised through the factor of their own personality, i.e., how punctual employee is,
behavior, personal hygiene. Even another criteria is determined on the B2 Form is the level
of achievement s points being 4 the highest or 1 the least in form of grading A the highest
which is 4 and D the lowest consider 1.

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FORM B3: This form contains the supervisor comments or evaluate the overall performance
by given the grading(A,B,C,D) and appraise the comments in the form of agree/disagree
then after evaluation is finalized in form signatures take by supervisor who conducted and
send to the HR department

This form contains two big boxes.

 First box is about Development Plan/ Supervisor comments.

 Second box is called overall assessment box. Appraiser gives the overall performance
grade to appraisee in form of A, B, C, D.

 Then comments of appraisee are also taken in form of agree/disagree.

 After it final acceptance of appraisee is also taken along with signatures.

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14. EQUAL EMPLOYEE OPPORTUNITY:
HBL is an equal opportunity employer in hiring and promotion practices, benefits and
wages. The Bank will not tolerate discrimination against any person on the basis of race,
religion, color, gender, age, marital status, national origin, sexual orientation, citizenship,
disability (where the applicant or employee is qualified to perform the essential functions of
the job with or without reasonable accommodation), or any other basis prohibited by law in
recruiting, hiring, placement, promotion, or any other condition of employment.

We treat all our employees, customers, suppliers and others with respect and dignity.

15. COMPENSATION
 HBL’s focus is on attracting, developing and retaining the best in the business by
offering market driven compensation and benefits packages.

 According to performance each employ gets benefits and compensation. Employees

are paid in two forms

 Direct payments

 Indirect payments

Promotion Policy:

 60% marks are taken from the appraisals of the employees.

 10% marks are taken from the education

 10% marks are taken from the experience

 10% marks are taken of the mobility – hard areas

 20% marks are taken of the interview

 Total marks are 110

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 16.EMPLOYEE RELATIONS
 Involves the body of work concerned with maintaining employer-employee relationships
that contribute to satisfactory productivity, motivation, and morale.
 Concerned with preventing and resolving problems involving individuals which arise out of
work situations.
 The environment at HBL is cultural, ethical and challenging that encourages creativity and
commitment among employees.
 HBL fosters a work environment where employees can realize their potential.

CONCLUSION
HBL is clearly the first choice of everyone who believes 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. Corporate and commercial functions are distinguished
features 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 give proper attention to every customer then
in few years it will be the leading bank of the country.

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REFERENCES:

https://www.hbl.com/aboutus

https://en.wikipedia.org/wiki/Habib_Bank_Limited

https://bohatala.com/performance-management-and-appraisal-at-habib-bank-
limited/

https://www.ukessays.com/essays/commerce/performance-appraisal-of-hbl-
commerce-essay.php

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