ACKNOWLEDGMENT

Praise is to Allah Almighty, the one testing us all at all times and making decisions about what we dont know and cant know.

Working on this report, appeared to be a great experience to us. It added a lot to our knowledge while we were working on it. If we say that this report is one of our memorable experiences in student life, then it would not be wrong. We owe deep gratitude to Maam Ayesha Adnan for stimulating our creative abilities by assigning this project to us. She broadened our horizons by allowing us to do this project, without whose kind attention and interest, it would be difficult for us to complete this report. We are also highly obliged to Habib Bank Limited for their assistance and guidance. And at the last but not the least, most important of them, are our parents, we all thanks them for their prayers and patience for letting us do all the work by ourselves.

TABLE OF CONTENTS
1

Page 1. 2. 3. 4. 5. Acknowledgement Executive Summary Purpose of Project Brief Overview of Habib Bank Limited HBL Introduction a) Mission Statement b) Vision c) Objectives Of HBL d) HBL History 6. 7. 8. 9. 10. HBL Culture HBL Working Environment HR Measuring Method Code Of Ethics HR Functions 10.1 Organization Chart a) Employment b) Training and development c) Performance Appraisal d) Compensations and Benefits e) Employee relation
JAHAN KHUWAB WAHAN HBL

No. 1 6 7 7 8 8 8 8 9

11 11 12 12 13 13 14 14 15 16 16

 Interpersonal communication 11. 12. 13. 14. Conflict management Discrimination or Harassment Equal Employment Opportunity Drug- Free Work Place SWOT Analysis Of HBL a) Strengths b) Weaknesses c) Opportunities 15. d) Threats Analysis Of Organizational Structure a) Centralized Decision Making b) Downward Communication c) Chain of Command d) Authority and Responsibility 17. e) Delegation Succession Planning a) Management Trainee b) Management Associate c) Cash Officers e) Internships 18. Job Analysis a)The Interview for job analysis b) Questionnaire
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17 17 18 18 19 19 19 21 21 22 23 23 24 24 24 25 25 26 26 27 27 28 28 29

19.

Quantitative Job Analysis Techniques a) The position analysis questionnaire (PAQ) b) The Department of Labor (DOL) procedure c) Job description d) Job specifications e) Job Evaluation Sources For Recruitment a) Internal Recruitment Sources b) External Recruitment Sources Selection Process a) Analysis Of Positions And Requirement b) Identify Candidates c) Prescreening and short listing d) Test/ interview e) Final Selection HBL Role In Orientation Critical Evaluation of HR Functions Our Suggestions For Betterment Of HBL References

29 29 29 29 30 30

20.

31 31 31 33 34 34 35 35 37 38 38 41 42

21.

22. 23. 24. 25.

JAHAN KHUWAB WAHAN HBL

JAHAN KHUWAB WAHAN HBL

EXECUTIVE SUMMARY

Habib Bank Limited is one of the banks playing a very important role in the economic development of Pakistan. Its providing high quality services, manage customer experience efficiently, have comparative advantage due to its innovative technology and provide high profit to its stakeholder. In order to maintain and improve its services in the competitive market HBL Human Resource Department plays a very important role. You will find in this report the complete HR function of HBL. The Vision, Mission and Strategic goal of HBL what are the methods followed by HBL for analyzing and evaluating its Jobs. How HBL recruit and select new employees. The methods used by HBL training and developing new skills in their employees. The methods used for performance appraisal of its job incumbents. Compensations and benefits provided by HBL to its employees and some other HR Functions.

PURPOSE OF THIS PROJECT

JAHAN KHUWAB WAHAN HBL

The main purpose of this project is to maintain the Human Resource Manual of Habib Bank Limited. It provides a brief overview of the organization and all the ways, strategies and alternatives mainly used by Human Resource Department of HBL.

BRIEF OVERVIEW

OF

HBL

Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of 1425 branches in Pakistan and 55 branches worldwide. 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 to small industries, traders and farmers. Overseas, it has operations in the following countries: Afganistan, Australia, Bahrain, Bangladesh, Belgium, Canada, China, France, Hong Kong, Iran, Kenya, Lebanon, Maldives, Nepal, Netherlands, Nigeria, Oman, Singapore, Sri Lanka, Turkey, UAE, UK & USA.

HABIB BANK LIMITED INTRODUCTION

JAHAN KHUWAB WAHAN HBL

A.

MISSION STATEMENT

OF

HBL

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.

B.

HBL VISION
Enabling people to advance with confidence and

success

OBJECTIVES OF HBL
Following are some of the main objectives of HBL. To earn profit for the Bank itself and for its shareholders. To promote and boost up business sector inside the country. To provide employment opportunities to people. To help in development and industrialization of the country. To provide loan and advances to help out in self employment schemes.

JAHAN KHUWAB WAHAN HBL

C.

HBL HISTORY
HBL was incorporated on 25th August 1941 and operated in the private sector until its nationalization in 1974. HBL has been approved for privatization and the privatization commission has selected a Financial Advisor to prepare a comprehensive plan and assist in the sale process. The government has appointed a professional management team to restructure the bank and to recover and clean its doubtful and classified portfolio. The HBL Board of Directors of are:

Sultan Ali Allana Ahmed Jawad Sajid Zahid Yasin Malik Mushtaq Malik Moez Jamal R. Zakir Mahmood

Chairman Director Director Director Director Director President & CEO

The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over 170,000 shareholders following the public listing that took place in July 2007. With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Asia,
JAHAN KHUWAB WAHAN HBL

Africa.

Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers. HBL due to its innovative corporate culture wins their customer trust. HBL is running a corporate website to provide information and customer services which is:

www.hbl.com

HBL CULTURE

Habib Bank Limited culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. The organizational culture of HBL is that it always provides profit to its
JAHAN KHUWAB WAHAN HBL

10

stakeholder and never misrepresents its financial reports and will never do any unethical act which harms its client and competitor. The employees of HBL will always be helping and friendly with its customers. The norms of HBL are it always follows the Laws of country and maintain its goodwill.

HBL WORKING ENVIRONMENT

The working/organization environment of HBL is very sophisticated. Environment is very friendly due to group coordination. Employees can easily communicate horizontally and vertically which help to achieve its goals and objectives. Employees have to follow formal code of ethics of Habib Bank Limited

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11

HR MEASURING METHOD

Habib Bank Limited

uses

Scorecard

Approach to

measure

the

effectiveness and efficiency of HR department. HBL follow the seven steps to measure its HR department. First HBL define its business strategy (discussed above). Second its outline the companys value chain activates (activities which create value for customers and related supporting activities). Then it outlines what organizational outcomes (goals and targets) the bank has to achieve. Then it evaluates the workforce required to achieve the goals. After that HBL devise its HR policies and practices (what new training is required?). Then it designs the HR scorecard and periodically evaluates the measurement system.

CODE OF ETHICS
A code of ethics is a formal statement that acts as a guide for making decisions and acting within an organization. HBL works for code of ethics for the implementation of ethical business effectively and efficiently.

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12

HR FUNCTIONS
ORGANIZATION CHART
A chart defines the line of authority in an organization and its departmentation. It is a sort of visual presentation of the organizational structure. It specifies the duties and responsibilities of the personnel of the organization. The Organizational chart of HBL is given below.
Chairman

President

Board of Directors

SEVP International Operations

SEVP Finance, Audit & Administration

SEVP Corporate Banking & Treasury

SEVP Asset Remedial Management

SEVP Retail Banking & Information Technology

SEVP Credit Policy

JAHAN KHUWAB& Project financial institute WAHAN HBL

Finance

SEVP Corporate Banking,

13

A. Employment
Recruitment is the initial attraction and screening of the supply of prospective human resources available to fill a position. HBL staff is the key point between customers and the bank crucial to their success. Thats why HBL has been recruiting high-caliber senior and mid level professionals to further strengthen the quality of their staff pool. They are also looking out for managers of tomorrow, recruiting trainees and probationary officers with potential to shine. These trainees are being put through specially designed programs at the Banks Management Development Institute to build their skills and shape them into the stars of the future. Recent recruitments have been geared towards product specialists and system specialists and towards improving customer care.

B. TRAINING

AND DEVELOPMENT

Training is the process of teaching new employees the basic skills they need to perform their jobs and development is result of that training.
For training and developing HBL follows five steps process of training and development JAHAN KHUWAB WAHAN HBL

14

 Needs analysis: Identify job performance skills needed, assess prospective trainees 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 programs successes or failures Training methods used by HBL: On-the-job Training Off-the-job Training Apprenticeship Training Informal learning Effective lectures

C. PERFORMANCE APPRAISAL
In performance appraisal of employees HBL use Graphic Rating Scale Method (a scale that lists a number of traits and a range of performance for each. Employee is then rated by identifying the score that best describes his or her level of performance for each trait) in which HBL measure the characteristics and previous performance of employees and then rank them subsequently.

In the performance process HBL first discuss the job and duties assigned to the each subordinate in the Groups. After that they compare their actual performance with the standards which are set by the HBL. Then the
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15

performance reports of subordinates are discussed with them and make plans if any development is required or not.

D. COMPENSATION & BENEFITS

The salaries, rewards, bonuses, and incentives on the basis of job and performances are compensations. COMPENSATION
AT

HBL:

HBLs focus is on attracting, developing and retaining the best in the business by offering market driven compensation and benefits packages. HBLs 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. Indirect financial payments: This mode of payment is not related to cash payments like medical, insurance, residence, car, car fuel etc.

E. EMPLOYEE

RELATION

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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. work situations. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect

The environment at HBL is cultural, ethical and challenging that that encourages creativity and commitment among employees. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, HBL enables its employees to achieve their professional goals while keeping in synch with the banks overall objectives.
HBL believes in two skills for employee relation Interpersonal communication Conflict management

Interpersonal communication skill: At HBL the first skill for managers to understand and practice is interpersonal communications, because it is the foundation for all actions in the workplace and it allows the manager an opportunity to build relationships with the overall workgroup without alienating anyone in the work environment. Working with diverse groups of people requires a tremendous amount of interaction. If these interactions are positive, they can help create the right workplace climate, attitudes, beliefs and behaviors. Keeping in view these all points interpersonal HBL emphasizes on strong interpersonal communication skill for effective accomplishment of goals. Conflict management: In HBL the second skill for managers to leverage, is conflict management. It is actually conflict resolving approach. Learning to leverage this skill helps in resolving employee relations issues quickly and effectively, and creates greater satisfaction with the workgroup. In this skill manager let his/her JAHAN KHUWAB WAHAN HBL

17

subordinates to speak and say whatever they feel during working with manager. Manager cares for the emotions and feelings of their employees.

DISCRIMINATION

OR

HARASSMENT

Habib bank encourages a work environment where employee differences are valued and respected. Bank promotes equality of gender, race and religion and prohibit sexual or any other kind of discrimination, harassment or intimidation whether committed by or against a supervisor, coworker, customer, vendor or visitor.

No employee shall because of race, creed, color, national/ ethical origin, gender/sex, marital status, sexual preferences, religion, age, or physical disability, be subjected to any discrimination or to any harassment be another employee of the bank.

EQUAL EMPLOYMENT OPPORTUNITY

Habib bank limited 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, citizenship, disability or any other basis prohibited by law in recruiting, hiring, placement, promotion, or any other condition of employment. JAHAN KHUWAB WAHAN HBL

18

DRUG- FREE WORK PLACE

Habib bank limited is committed to providing a safe work environment and fostering the well being and health of its employees. This commitment is jeopardized when an employee illegally uses drugs or alcohol on the job, come to work with these substances present in his body, or possess, distribute, or sell drugs in the workplace.

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 organizations mission by: 1. 2. 3. Exploiting opportunities and strengths. Neutralizing its threats and Avoiding its weaknesses.

Following is a list of SWOT of HBL

A. 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. JAHAN KHUWAB WAHAN HBL

19

 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. Being the pioneer of banking in Pakistan, 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. Veteran and experience private management group also involved in other interests like, textile and cement industry. Customer enjoys the services at the residential localities.

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20

B. WEAKNESSES
Highest number of branches effecting the proper maintenance and difficulty in providing same working environment at the each branch

Poorer system of recovery of the system is a threat to bankruptcy.

Lack of customer feed back. Low job satisfaction. Poor ATMs 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 down sizing. Females feel uneasy in an environment among the male workers. Victim of political, legal and socio-cultural pressures .Lack of professionalism in the branch employees mostly.

D. 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.
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21

 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, specially 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 Ill and expand its foreign operation successfully.

Habib Bank Limited provide opportunity to utilize its skills and efficiencies in leasing business.

E. THREATS
An area in the environment that increases the difficulties the organizations achieving high performance. Consolidation in the banking sector resulting in increased competition. Shortage of trained and specialized staff at lower executive and officer levels

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22

 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 as Ill as to meet the prudential. 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.

ANALYSIS OF ORGANIZATIONAL STRUCTURE

The purpose of an organizational structure is to help in creating an environment for human performance. It is then, a management tool and not an end in its own. Although the structure must define the task to be done, the rules so established must also be designed in the light of abilities and motivation of the human recourse available. By analyzing the organizational structure of HBL presence of the following elements can be found in its structure.

A. CENTRALIZED DECISION MAKING

By looking at the organizational structure of HBL would be found that the structure at HBL is a critical one. All the decisions are made at the top management level and the subordinates have to obey these decisions. This trend in the decision making shows a pattern of rigidity in structure of HBL.

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23

B. DOWNWARD COMMUNICATION
Communication is the process by which information is exchanged and understood by two or more people, usually with the interest to motivate or influence the behavior of others in the organization. Downward communication is the message and information sent from top management to subordinates in a downward direction. Managers can communicate downward to the employees through speeches, massages in company publications, information leaflets, tucked into pay envelops material on bulletin boards, policy and procedure mandates. The same pattern is followed at HBL. No doubt its a very traditional approach but it can create problems because it ignores the receiver of the communication because the issuer of policies and procedures does not ensure communication. In reality may the messages communicated downward are not understood perfectly.

C. CHAIN

OF

COMMAND

The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom. By analyzing the organizational structure it can be found that there is a scalar principle followed with in the Bank because each and every person knows to whom can one report. The authority and responsibility for different tasks and duties are different, as well as every one knows the successive levels of management all the way to the top.

D. AUTHORITY

AND

RESPONSIBILITY

The chain of command illustrates the authority structure of HBL. Authority is the formal and legitimate right of the manger to make decisions, issues orders and allocates resources to achieve organizational desired outcomes. By analyzing the chain of command of HBL, one can come to the conclusion that, as there is scalar pattern followed at the organizational setup of HBL therefore it is implied that JAHAN KHUWAB WAHAN HBL

24

everyone in his position knows that what is ones authority and what is the responsibility and the authority it allocated.

E. DELEGATION
Delegation is the process, which managers use to transfer the authority and responsibility to position below in the hierarchy. Most organizations today encourage managers to delegate authority to the lowest possible level to provide maximum flexibility to meet customer needs and adapts to the environment. But at HBL no such system prevails the managers try to keep as much of the authority as they can and if some authority is delegated it is sure that it will be misused

SUCCESSION PLANNING
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 firms management skills inventory, Create replacement charts, Begin management development. HBLs Management Trainee (MT) program deals with succession planning. MT is defined in the following section of Training and developing methods.

TRAINING AND DEVELOPMENT PROGRAMS AT HBL

HBL uses following programs for training and development Management Trainee Management associate JAHAN KHUWAB WAHAN HBL

25

Cash officers Internships

A. MANAGEMENT TRAINEE
HBLs 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.

B. MANAGEMENT ASSOCIATE
HBLs Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. It provides accelerated development opportunities across HBLs 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.

C. CASH OFFICERS
HBLs Cash Officers Program catapults successful candidates to the front lines of the bank. Candidates in this program are the banks ambassadors and must have exemplary skills in dealing with clients. The program involves an extensive oneJAHAN KHUWAB WAHAN HBL

26

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 HBLs 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.

D. INTERNSHIPS
HBLs 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.

JOB ANALYSIS
The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it is called Job analysis. Job analysis is every important as job analysis information is used in Selecting and recruiting, compensation, performance appraisal, training and in resolving other issues which HBL faces. HBL takes Job analysis services from Sidat Hyder Morshed Association (SHMA) which is the biggest HR consulting

JAHAN KHUWAB WAHAN HBL

27

firm in Pakistan. The methods which are used in collecting job analysis information are The interview Questionnaires
FOR JOB ANALYSIS

A) THE INTERVIEW

Interview is a big source in collecting information in the job analysis. Individual employees, group of employees and supervisors with vast knowledge about jobs are interviewed. The format of interview is Structured and unstructured. In structured interview a set of sequence of questions are followed by interviewers and in unstructured type of interview the interviewer pursues points of interest as they come up in response to questions.

B) QUESTIONNAIRES
In questionnaire the employees solve the fill out questionnaires to describe their job-related duties and responsibilities. The formats of questionnaires are either structured or open ended.

QUANTITATIVE JOB ANALYSIS TECHNIQUES

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28

Following methods are also used in job analysis which are called quantitative job analysis techniques
A)

THE

POSITION ANALYSIS QUESTIONNAIRE

(PAQ)

A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs.
B)

THE DEPARTMENT

OF

LABOR (DOL)

PROCEDURE

A standardized method by which different jobs can be quantitatively rated, classified, and compared.
C)

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.
D)

JOB

SPECIFICATIONS

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.
E)

JOB EVALUATION

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29

Job Evaluation is a systematic comparison done in order to determine the worth of one job relative to another

Job evaluation technique used by HBL is Ranking Method in which each job relative to all other jobs according to its difficulty level like for example job of supervisor is tougher than the manager working under its supervision.

SOURCES FOR RECRUITMENT

In order to determine the future staff needs Habib Bank Limited uses Ratio Analysis technique (a Forecasting technique for determining future staff
JAHAN KHUWAB WAHAN HBL

30

needs by using ratios between, for example sales volume and number of employees needed) in which trend between two trends is determined like volume of deposits, revenue, new branches etc and number of employees needed to perform tasks A) INTERNAL RECRUITMENT SOURCES In forecasting the supply of inside candidates HBL use Qualifications inventories (manual or computerized records listing employees education career and development interests, languages, special skills and so on to be used in selecting inside candidates for promotion) so in order to replace a supervisor of a department a person below educated then the current supervisor will be selected as a new supervisor.

B) EXTERNAL RECRUITMENT SOURCES

External source for hiring employees use by HBL is Succession Planning (the ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance) in which HBL do analysis on the important or key jobs in the organization, create a list of competent employees who can fulfill the requirement of that job and then select the best employee who can perform that job efficiently and affectedly. The internal sources used by the Habib Bank Limited for hiring candidate are Advertisement, Head hunter and Word of Mouth. In advertisement they use different mediums like Television, Newspaper, subscribing the jobs on Job sites e.g.

www.rozee.pk, www.monster.com
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31

HBL has hired its own Retained Executive Recruiters/Head hunter (Executive recruiters are special employment agencies retained by employers to seek out top-management talent for their clients) to find competent and qualified people for HBL. But due to some circumstances there is flexibility in hiring the employees externally and internally for example non availability of required candidates, lack of time, lack of resources etc. Usually Habib Bank Limited dont take Referrals but due to some reason they do sometime take referrals for example referral form a high command person, person on referral is qualified and competent etc.

SELECTION PROCESS
The recruitment and selection process starts with employment planning. This process of deciding what positions the firm will have to fill, and how to fill them. Personnel or employment planning embraces all future positions, from maintenance clerk to CEO.

SELECTION

AND

RECRUITING PROCESS

IN

HBL

JAHAN KHUWAB WAHAN HBL

32

The diagram below represents the process on which HBLs selection is based. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team.

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.

A) 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.

B) IDENTIFY CANDIDATES
HBL identifies its candidates by developing the criteria of job description and job specification and acting upon these criteria job vacancy ads are spread through different Medias like newspapers and internet.
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33

OUTSIDE SOURCES HBL uses outside sources for recruitment which are Advertising Khabrein etc) 2. Trade and professional journals (Aurora Magazine) 3. Internet job sites (rozee.pk) Outside sources of candidates: 1. Sidat Hyder Morched Association works for outsourcing for HBL. 2. College recruitment 3. Employee referrals 4. Walk-ins FINDING INTERNAL CANDIDATES 1. Job Posting 2. Rehiring former employees

1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily

C) PRESCREENING

AND SHORT LISTING

Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board. After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume.

D) TEST/

INTERVIEW

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34

In this process short listed candidates are called for test and interview according to nature of their applied jobs. SELECTION INTERVIEW Selection interview is conducted for short listed candidates. A selection interview is the procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries. FORMATS USED IN SELECTION INTERVIEW Structured/Directed Unstructured/Non directed INTERVIEW

MODES

OF

Penal interview

An interview in which a group of interviewers questions the applicant. Structured sequential interview

An interview in which the applicant is interviewed sequentially by several persons; each rates the applicant on a standard form.

TYPES

OF

QUESTIONS

SITUATIONAL

A series of job-related questions that focus on how the candidate would behave in a given situation. JOB
RELATED

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35

A series of job-related questions that focus on relevant past job-related behaviors. These types of questions are asked from those candidates who have past experience of job. STRESS

An interview in which the interviewer seeks to make the applicant uncomfortable with occasionally rude questions that supposedly to spot sensitive applicants and those with low or high stress tolerance. These sorts of questions are asked according to high designation of candidate. PUZZLE
QUESTIONS

Recruiters for technical and finance job use questions to pose problems requiring unique solutions to see how candidates think under pressure.

TESTING Organizational performance always depends in part on subordinates having the right skills and attributes. Keep in view this point HBL tries its level best to hire highly skilled and suitable employee for each job. For judging these skills HBL conducted some tests of employees on the basis of Reliability Test validity

The consistency of scores obtained by the same person when retested with the identical or equivalent tests is called reliability and the accuracy with which a test and interview what it purports to measure or fulfills the function it was designed to fill is referred as validity.

E) FINAL SELECTION
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After going trough all the processes the best candidates according to HBLs selection boards are selected.

HBL ROLE IN ORIENTATION

Just after final selection and before starting of training process orientation is conducted for selected employees in orientation new employees are provided with basic background information about the HBL the basic contents of successful orientation are o Information on employee benefits o Personnel policies o The daily routine o Company organization and operations o Safety measures and regulations

CRITICAL EVALUATION

OF

HR FUNCTIONS

As we review the HR Functions of Habib Bank Limited we asses that HBL have strengthened its roots in the market place and competing with its
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competitors successfully. It has at a vast level providing online service and one of the leading banks in e-banking in Pakistan. The Horizontal organization design of HBL is also the reason of its success because as compare to vertical organization design horizontal is better due to fast and easy flow of communication among the employees. HBL is playing a very significant role in providing employment, Loan etc which increaser the per capita and living standard of civilians. HBL culture and environment is also better as we compare to its competitor because there are some ethical norms, values which are the soul of HBL and the environment is very selfrelieving, relaxing in which employees work their best. While measure the efficiency and effectiveness of HR department functions Score Card Approach is best and most frequently used in corporate environment. This approach easily gives HBL accurate results.

Interview is the most commonly used for job analysis. HBL use interview and questionnaire to ask for employees what the job entail and then write the job description and job specification. For job evaluation HBL use ranking method in one job is compared from another. This is not the best one as compare to some of its competitors

The recruitment methodology used by HBL is Ratio Analysis in which ratio between two trend is determined which is one of the best method to forecast future employee need. HBL use qualification inventories, advertisement and head hunters to find new talented employees. But HBL sometimes due to some reason show flexibility to hire new employees in which low competent
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employees are hired and referrals is also the reason of hiring unqualified and not competent people.

HBL only take Intelligence test (IQ) to analyze new employees for selection due to which people who are not intelligent but have other skills are not hired. For Training and development HBL use different method which are Soft Skill Functional Training, on-the job Training and class room lectures. These methods are the main reason for HBL success and Good services.

For performance evaluation of employees HBL use Graphic rating scale method which promote and give rewards to employees due to their good traits and performance during the session. HBL conduct performance appraisal at the end of year so the session is of one year.

The compensation and benefits plan of HBL are also very good as to its competitors. They provide Paid-time off, Retirement, Disability Insurance, Education and training programs to their employees. Employees stress handling during the work is also best HBL handle stress of its employees like many of its competitor are not be able to handle.

This is all the information that we get from HBL HR manager. The visiting card of HR manager is also attached.
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OUR SUGGESTIONS FOR BETTERMENT OF HBL

HBL is Pakistans largest bank. It should eliminate the cost of online banking since they charge cost of online transaction or transfer. HBL is initiator of Tele-banking service which is unique service in Pakistan. Through this service we can get information about our personal account on telephone. Most of times customers find the service operator busy. HBL should increase their tele-banking service centre. 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. The process of promotion at HBL is slow so they should maximize the promotion process which would be source of motivation for their employees. At many occasions HBLs ATM network gets slow and their AT machines dont allow for transaction they should renew their ATM links in order to make their customers avoiding inconvenience.

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REFERENCES
i. ii. iii. iv.

https://www.HBL.com.pk/ http://www.wikipedia.org/ www.HBLonline.com

www.google.com.pk

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