PRESENTED To: Miss.Shumila Gul
PRESENTED BY: Amna Zafar F07B055
INSTITUTE OF BUSINESS AND INFORMATION TECHNOLOGY
Table of Contents
Introduction History Background Present status Privatization Economic landscape Financial highlights Organization’s profile Branch network Vision Mission Hierarchy Chart Managerial function Planning Organizing Leading Controlling SWOT Analysis Decision Making and Policy Making Centralized Decentralized Decision Making Process Mangers Decisions Management Styles and Policies 18 15 16 13 14 8 4
Collective Participation in Decision-Making Employee Participation Delegation of Power Control Function Organization Structure and Design Omnipotent or Symbolic View of management Culture of the organization Dimensions of Organizational Culture The Source of Culture How Employees learn culture Innovative culture Customer-responsive culture Focus on individual development Trust and openness Employee’s Empowerment Toleration of Employees Expression The Environment Stakeholder relationships Socioeconomic view Value-Based Management Managerial Ethics Human Resource Management Recruitment Selection Orientation 27 27 25 24 19 21 21
Types of Training Career Development Conclusion/Recommendations
This report is for academic purpose. it was assigned to us as an assignment and project of our course “Business Organization and Management” .In the report we have mentioned the organization structure, policies, strategies, working styles of the organization, decision–making styles, SWOT analysis etc. We conducted questionnaires, interviews from HBL (Thokar Naiz Baig) branch from top management low-level management and also searched at internet and collected information about organization.
Bank is an important institute of an economy. In modern times a strong banking system is necessary for economic prosperity of a country. Banks are necessary for maintaining a sound financial position of Government and for running trade and industry.
Habib Bank Limited (HBL) was established on 25th August 1941 just one year after the historic Pakistan resolution was adopted in Lahore for carving an independent homeland for the Muslims of subcontinent. It was founded with the blessing of Quaid-e-Azam (Great Leader) Mohammad Ali Jinnah, the architect and founder of Pakistan. We are proud of the fact that the Quaid-E-Azam demonstrated his faith and confidence in HBL by opening his personal account in our Bombay branch in the year 1946. The first prime minister of Pakistan Quaid-e-Millat Liaqat Ali Khan, on the independence day of Pakistan (August 14, 1947) appreciated the service of the bank in these words. “I wish every success to HBL and hope that it will continue to play an important and useful role in the industrial and commercial life of the Muslim nation” The commitment of HBL towards the cause of the economic uplift of Pakistani people was successfully tested when the subcontinent was partitioned in 1947. The new born country faced serious financial difficulties. Habib Bank joined hands with the government of Pakistan and placed all its services at their disposal for nation building activities. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. It was HBL that introduced products such as Debit Cards, ATMs, Travellers Cheques, etc., to the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products & services. Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the
world. Habib Bank Plaza, the second tallest building in Pakistan, is the proud symbol of HBL’s leadership in Pakistan’s corporate arena.
The Habib Bank Group is leader in Pakistan’s services industry. Today, HBL has more than 1,400 branches all over Pakistan and presence in 25 countries across five continents. With a revamped customer oriented philosophy, we are pursuing new avenues of leadership through innovation, as we gear up to face the challenges of the new millennium. A huge network of 1425 domestic branches, with largest bank in Pakistan. And 55 international branches have enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving client relationship that forms the backbone of the Bank’s operations. Today, HBL plays a central role in Pakistan’s financial and economic development. It has come a long way from its modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees. Impressed by its initial performance, Quaid-e-Azam Mohammad Ali Jinnah asked the bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in the Quaid’s city in 1943 and became symbol of pride and progress for people of Pakistan. Habib Bank has a pioneer in providing the innovative banking services. These have included the installation of the first main frame computer in Pakistan followed by first ATM and more recently internet banking facilities in 1425 domestic branches.
The year 2003 was marked by the implementation of the Government of Pakistan’s program for privatizing the Bank. Amongst the qualified bidders, the Agha khan Fund for Economic Development (AKFED) offered the highest bid, which was accepted by the Government of Pakistan in December. HBL’s privatization is the largest in Pakistan’s history and management takes great pride in fact that the bidding took place with in four months of the commencement of the due diligence process in September 2003. With this change the anticipates further progress as AKFED brings considerable expertise in international finance and business and is familiar with conditions in Pakistan, where it already has extensive operations in various fields.
The country is now in the process of warming its relations with the neighbours. Consequently the political stability has translated into direct economic benefit for Pakistan. G.D.P. growth has exceeded. The capital market performance has been, once again, very impressive and KSE has performed at par with all other stock markets of the world. The banking sector has played an important role in sustaining this growth: consumer financing has enhanced purchasing power and created new demand while the low interest rates has contributed to making exports price competitive. The state bank of Pakistan (SBP) has played a supportive monetary policy role to sustain and improved the current growth improved current growth momentum.
now ranks amongst the top corporate entities in Pakistan in terms of profitability. This large jump is also reported profit the net interest income and profit growth of the bank has been achieved in an environment that can be termed unique for the sector in Pakistan. The improved economic fundamentals have allowed the government to slash its borrowing requirements and this , combined with substantial inflows of remittance , has resulted in a large build up of excess liquidity in the banking sector.
Name of Organization: Habib Bank Limited Zakir Mahmood President and Chief Executive Officer: Head Office: HBL Phone Banking: Product Information: Fax: Telex: Website: Corporate: www.habibbankltd .com Treasury website m.pk www.hblgtr.co
Habib Plaza, I.I. Chundrigar Road, Karachi-75650. 111-111-425 111-33-44-55 2411647 20086-20751 HBANK-PK
For a bank to deliver quality services, it is imperative that technology be an integral part of all aspects of its operations. At Habib Bank, strategy has been to utilize cutting edge technology to serve customer efficiently and in a cost effective manner. HBL strive to accomplish this while maintaining a strong personalized approach in our customer relationship. HBL embarked on an ambitious plan in 2001 to revamp its technology platform. The technology initiative includes: Online inter-branch funds transfer Alternate delivery channels e.g. POS terminal ATM network for cash withdrawal, fund transfer, payment of utility bills etc E-commerce Internet banking PC based banking for corporate customers Automation of treasury and trade finance HBL corporate website has recently been revamped and now provides a customer friendly, information rich and technologically advanced environment to its clientele. Enhancement of the Bank’s communications network to provide online connectivity to: More than 200 branches, corporate centers and regional offices in over 30 cities through out Pakistan More than 100 ATMs covering most of cities Over 1000 nationwide ‘point of sales’ terminal. Habib Bank’s corporate email users Implementation of a Virtual Private Network (VPN) yielding the following benefits: Centralized processing of batch branches offering daily consolidation of data for customer service and risk management Implementation of technology in HBL international centers As with our other areas of operations, we recognized that at international centers too, technology is a key consideration for bank to ensure the competitive edge and maintain effective internal control. To that end
significant steps have been taken towards automation and offering technology related faculties at our overseas centers.
Habib Bank is represented in 25 countries in 5 continents through a network of 55 branches, subsidies and joint ventures. The Bank has one of the most extensive international networks amongst the emerging market banks. Our ability to operate successfully in diversified markets and cultures in a function of long history in international banking- HBL opened first international branch in 1951 and established customer base. Our international presence spans major financial centers as well as developing countries.
“To be the premier organizations operating locally and internationally that provides the complete range of financial services to all segments under one roof.”
HBL is a client-oriented bank and its mission is: “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.”
SEVP (Senior Executive Vice President)
(Executive Vice President) SVP (Senior Vice President)
VP (Vice President) AVP (Assistant Vice President)
OFFICERS Grade1 Grade2 Grade3
JUNIOR OFFICIER ASSISTANTS OR CLERKS SECURITY STAFF
In HBL the management functions are performed as follow
In HBL, decision making is highly centralized because all the decisions and plans are made at the top level of management.
No autonomy is provided to HBL employees. HBL strives to become a cohesive and unified force, to offer the customer, a level of service beyond their expectations. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. And there is also a high degree of interaction among department managers.
The leadership approach established in HBL is team leadership and the positive attitude of HBL employees towards their job is because of increasing employee job satisfaction.
HBL impose external control on its employees and the criterion used by management to evaluate the employees is their performance. Annual reports are sent to the top level management about each and every employee which evaluates their performance.
Strategic management and SWOT analyses
External Analysis Opportunity threats Identify the organizations mission, goals and strategies
Internal Analysis Strengths weakness
This analysis makes the managers aware of the organizations external and internal affairs and helps them to grip opportunities and exploits the resources.
An old and well established organization Customers are loyal It is a well known organization. Good reputation
Organization is quite behind in the field of IT. its employees lack IT knowledge. Out of 1400 branches only 600 branches provide online banking facility. Overstaffing is serious problem for the organization.
Other banks have high and new IT technology. Other banks offer different valuable packages to the customers.
Our Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. HBL provide good opportunities for the employees in developing their careers. HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career.
Decision Making and Policy Making:
Decision making process at HBL has following points:
All major policies, plans, rules and regulations and controls etc. are devised by head office of Habib Bank Ltd in Karachi. Then these policies are conveyed to the regional heads and branch heads.
All routine maters are decided at branch level by the respective heads of departments with permission of branch head. If any problem or matter is beyond limits of branch, then it is referred to the Regional Head quarter.
Decision Making Process:
Identification of a Problem
Identification of decision Criteria
Allocation of weights to criteria
Development of alternatives
Analysis of Alternatives
Selection of Alternative
Mostly at HBL, managers decisions are Rational and intuition base.
Role of Intitution:
Experiencebased decisions Affectinitiated
Values or ethics- based
Subconscious mental processing Cognitivebased
Types of Problems:
Usually the middle managers face structured problems and they have the authority to deal with them without consulting the top mangers. Apart from this programmed or more complex problems are solved by the top executives.
Management Styles and Policies
At the moment is the management is following the revamping and reengineering policies. The VSS (voluntary Separation Scheme) is offered to the employees to reduce the number of employee which is first toward reshaping of under new management.
Collective Participation Decision-Making: Employee Participation:
Department heads meet frequently with each other and discuss problem with each other if any. They seek advice from each other and also the branch head is also available to all department heads to review or control the functions of bank.
The management is receptive to new ideas like for marketing some facility or improving any procedure, etc.
Delegation of Power:
Delegation means giving the authority to lower management. In Habib Bank Limited, top management makes the major decisions. So there is a centralized control. These are limits of authority approved for different levels of management at branch level. The branch operation manager and chief manager, takes active part in the decision-making. The lower level employees can make routine decisions relevant to their work.
There is a strict control in Habib Bank Limited. There is strict diligence over the activities of the branch by the regional head quarter and Head office. Both keep themselves completely informed by the activities of branches through different types of reports. Rules and regulations are strictly followed. Policies are implemented through the supreme authorities at each branch. Too keep the works going; back up of each critical or important seat is given. Few authorized officers duly sign most of documents.
Head office, State Bank of Pakistan and external auditor conduct annual audit to check that bank operations have been satisfactory completed. Accounts department strictly controls expenses. Employees are instructed and encouraged to abide by the rules and follows the policies of bank. Each employee, who operates computer, has his own password and access to other passwords is prohibited.
The HBL is divided in main group in its organization structure. The one which performs the core business activities and the second which perform the support
activities to achieve the business object effectively and efficiently. Further division of these groups is given below.
HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organization. We believe that creativity and innovation comes from talent, knowledge and experience and it is our endeavor to provide and maintain an environment which not only nourishes these strengths but also provides opportunities for the staff to have a career which has multidimensional growth opportunities. In doing so, HBG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training and hiring professionals and MBAs at entry-level management. The overall direction of HRG has been towards nurturing the strengths of the human capital to its maximum with a defining principal to help create a
progressive environment and sustain a thorough commitment of our staff towards focused customer service. HRG therefore recognizes the need to proactively invest in staff training and develop courses on a regular basis. Under the umbrella of our Management and Organization Development Division (MODD) our Management Development Institute (MDI) with its three fully equipped chapters at Karachi, Lahore & Islamabad regularly conducts and outsource technical and personal development courses for our all level of staff enabling them to meet the challenges of the everchanging business requirements and customer needs. During 2003, 529 courses, workshops, skill development clinics and seminars in the disciplines of Service & Attitude, Market Research & Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / ExHouse professionally skilled, qualified and certified faculty and industry experts for 10233 people of senior / middle line management & staff carving 1334 days training days. There is no budget limit for Training and Education at Habib Bank. HR Group aims to maintain and further improve the service-oriented culture and to make employment not only satisfying but also enjoyable.
Omnipotent or management
In HBL, managers are also responsible for the success or failure of the organization but there are also some factors that have great effect on organization and that type of affairs are out of control of managers.
Culture of the organization:
At HBL we have created a challenging environment that encourages creativity and commitment. In our pursuit of excellence, we are focused on attracting, developing and retaining the best talent in the marketplace. Our 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, we enable our employees to achieve their professional goals while keeping in synch with the bank’s overall objectives.
Dimensions of Organizational Culture
Attentio n to Detail
Innovation and Risk Taking People Orientati on
Outcome Orientati on
Organizatio nal Culture Stabilit y Team Orientatio n Aggressiven ess
Attention to Detail:
The employees in HBL are expected to exhibit precision, analyses and attention to detail.
Outcome Orientation: In HBL the managers not only focus the results or the outcomes but also how the outcome is achieved. Innovation and Risk Taking
HBL aim is to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of change.
HBL strives to become a cohesive and unified force, to offer you, the customer, a level of service beyond your expectations. This force is derived from participative and collective endeavours, a common set of goals and a spirit to share the glory and the strength to face failures together.
Stability: The organization tries its best to make such decision which should not have any adverse affect on the status of the organition.
The Source of Culture
HBL has a strict rule and regulations and employees learn culture by managers, trainings are conducted, books and different workshops are organized for the employees.
Selection of Employees
How Employees learn culture:
In HBL, the employees learn culture by stories and by rituals.
HBL has innovative culture. HBL promotes the new ideas and appreciate its employees for giving new and innovative ideas. That helps the employees in achieving their goals and, they try to show their best at job.
HBL has customer –responsive culture. The employees of the HBL are continues in their desire to please the customers and provide good service to their customers and satisfy the needs of customers.
Focus on individual development
HBL focus on individual development, HBL try to create the good culture, in which every employee can adjust, work properly, learn the new thing and give best.
Trust and openness
In HBL, top management have full trust on their employees. Mostly employees are honest and they
In HBL, managers have trust on their employees and they want that their
employees also try to make decisions at their own job level.
Toleration of Employees Expression:
In HBL, there is no toleration of employee’s expression. They want work and
Competitors Supplier s Customers Organization
HBL has good relationship with their customers, suppliers. Managers try their best to great good environment with them and solve problems in well manner.[ The general environment effects on HBL economic. HBL work in legal way, all the decisions of the managers are legal and they give benefit to their customers, stakeholder, stockbroker and employees. HBL fulfils the demographic conditions; HBL is introducing new types of accounts of different age groups, level of education income of family location. Now in HBL, there is a bit change of technology.
HBL have very good relation with his stakeholder and try to provide them better facilities and fulfil their need in proper and good manner.
Custom Social and Political
Unions Shareho lders Communiti es Supplie Media
Compet Trade and Industry Associations Govern
In HBL, managers try to maximise the profits for the organization but as well as they make decisions and plans for protecting the society. They focus on development and welfare of the society.
HBL make the goals and plans for society that gives benefit and they try to do right ethical decisions in a legal way.
HBL fulfill its economic need in legal way. .
HBL make changes in it as the society change. they change with environment provides the best services.
Shared Organizational Values
Guide Managers Decisions and Actions
Shape employee Behaviour
Influence Marketing Efforts
Build Team spirit
In HBL, there are also some rules that tell what is good or what is bad for organization while taking a decision.
HBL has a high degree of work specialization. It gives jobs to its employees according to their capabilities and their skills. So that they can give their best at their work in the specific field assigned to them
HBL has functional departmentalization.
Chain of Command
In HBL, the decisions are made by top level managers and then these decisions extended to the employees at the lower level and they work according to these decisions to maintain this continuous chain of command.
The structure of HBL is highly formalized because of high level of standardized jobs and because their employee’s behavior is guided by the rules and procedures made by their management.
Human Resource Management
HBL has a well established HRM department which is dedicated for hiring capable, skillful and well educated employees which are selected through special selection processes like interviews and written test to ensure that the most appropriate candidates are hired .It also keeps in view the need and demands of existing employees.
Human Resource Centre AA
Identification and Selection of Competent Employees
Adapted and competent employees with up-to-date skills and knowledge Career Developme nt
Performan ce Manageme nt
Compensati on and benefits
Competent and high-performing employees who are capable of sustaining high performance over the long term
Meritocracy is an integral part of HBL’s recruitment policy. Our merit-based recruitment process incorporates the principles of 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 and Competencies Abilities and Attitude Experience Interpersonal / Communication skills
The diagram below represents the process on which we base our selection. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team. We are proud of our ability to nurture individuals and empower them to hone their talents. Our size gives us the unique ability to provide fast
growth and significant responsibility early on in a career with multiple avenues to reach the top. As part of HBL’s human resource strategy, we visit various universities across the country to induct & groom fresh business graduates every year. Enthusiastic and talented youth form the backbone of our banking operations and are nurtured to become future leaders at HBL. To attract the best young talent, our resorting department employs a proactive strategy. We actively participate in campus seminars by giving presentations that highlight HBL’s background, vision, mission, values, recruitment & selection process, future career prospects and overall business strategies. We hire fresh talent on a permanent basis and offer a wide range of career opportunities across all functions, including Finance, Marketing, Operations, Information Technology and Human Resources.
In HBL, the application forms must be submitted by candidate by their CV and by giving basic information about himself/herself. Interviews are conducted by top management and evaluate the candidate. Sometime written test are also conducted. HBL investigate the background of candidate and physical fitness tests are used for selection of the candidates.
When the new employee is hired the management organizes the orientation program to introduce the rules, working and culture of organization to new employee.
Types of Training
HBL have different training programs.HBL organize different training programs for their employees for updating of knowledge of business and technology. It may be on the job or rotation of job or in form of lectures.
There are great chances of promotion for the hard working employees and for those who shoe their best performance and achieve the goal effectively and efficiently.
In HBL, top management evaluates the performance of his employees that the employees are achieving their goals or not, what improvement in employees makes them more successful. It is evaluated after a specific period of time.
In HBL, the employees are motivated by giving them bonuses, compensations and other facilities necessary for living a good life that fulfils their social and the safety needs.
No doubt that HBL is the largest bank in the private sector and since its establishment it has progressed and improved tremendously and has a customer base exceeding 5 million but it can still advance further if it adopt new changing IT technologies as there is still room for some inprovemnets.It should train its employees about the new IT trends. Moreover certain needs of the employees should also be considered like bank timings should be acceptable and employees should be given importance and must be consulted in some decision making processes. Improved friendly relations are required between the top and the middle management. This will make the employees work even better for their organization.
www.habibbankltd.com www.hblgtr.com.pk www.google.com
Syed Mussadiq Hussain (Manager Habib Bank Thoker Niaz Baig Branch)