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HUMAN RESOURCE MANAGEMENT

Final Assignment

Linking HRM with Business Strategy

Presented by:

JAB WE MET
MUHAMMAD HUSSAIN

ARSHAD KHURSHID

FAHEEM SHAHZAD

NAVEED AHMED

ADNAN SALEEM

HASEEB BUTT

DAUD ZAFAR

Presented to:

Prof. AFSHAN HAMEED

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SUPERIOR UNIVERSITY LAHORE

Our shorter, smarter name, crisper new colors and fresh new look are an insight to our views on
banking. We aim to provide innovative financial solutions to our customers, with the security of
knowing they are dealing with one of the strongest financial institutions in the country. Our new

slogan reflects our customer service philosophy – we’re Askari Bank, ask us!

Interview with Manager


(MOBEEN ASLAM BUTT)

E-mail: mobeen.aslam@askaribank.com.pk

In order to the better understand of strategic human resource management and to know the
integration of HRM with strategies of business, we have conducted this interview. Open ended
questions are asked. The manager is very cooperative, so we have learnt much from him. He is
not only answered the questions that we asked but also tell us his own experiences related with
business strategies of Askari Bank. Overall there was a healthy discussion and we have learnt
much about SHRM. The findings and over all summary of the interview is given below.

History:

Askari bank begins to operations in April 1992, as a public limited company. The bank is listed
on the Karachi, Lahore and Islamabad. Askari bank has expanded into a nation wide presence of
83 branches. A shared network of over 800 online ATMs covering all major cities in Pakistan
supports the delivery channels for customer service.

Business strategy:

‘A long-term approach to implementing a firm's business plans to achieve its business


objectives’. Askari’s core marketing focus for its asset base has been the middle and upper
middle business houses (including wholesalers and manufacturers) operating in the large urban
centers of Pakistan, which are primary oriented towards foreign trade. Askari bank is operating
throughout Pakistan. Most of the branches are connected through our state of the Art, on-line
communications network, which gives the bank a competitive edge in providing instant services
to its client.

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The bank basically works under three groups named as:

1) Corporate banking and financial institutions group

2) Retail banking group

3) Operations and credit group

Human Resource Division:

Strategically, perhaps the most important division at the head office is responsible for human
resource management. The division also handles matters relating to administration. This division
operates on future oriented strategy focusing on employee’s personal and professional growth.
Staff development activities are geared to enhance their capabilities for applying the knowledge
and the facts towards development of practical situations. Under our human resource
management policy,

 We develop and groom our management personnel for positions of greater


responsibilities analytical, interpersonal, conceptualized and specialized skills to enable
them understand cause- and- relationships and to think logically.

 Staff is given on the job as off-site training in diverse areas of banking and management.

 Our hiring policy is based upon meritocracy and selecting the right person for the right
job.

 We lay greater emphasis on employee’s honesty and integrity besides technical


competence.

 Candidates are selected through well defined and systematic selection procedure.

Levels of strategy:

Corporate level strategy

• Branch expansion (network)

• Outreach in small towns

• Non-conventional channels of banking

• Off-site ATMs

• Regulatory compliance

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Corporate level
strategy

BOD

Board
CEO of
director
CEO: Chief Executive Officer s

BOD: Board of Directors

They do SWOT analysis and responsible for corporate level strategies.

Competitive level strategy

• Small loans to SMEs

• Finances in new sectors

 Construction

 Electronics

 Chemicals

• Debit cards/ credit cards

• Recovery of NPLs (non performing loans)

Operational level strategy

• Corporate accounts in separate branches

• Centralization of banking functions

 Central foreign trade units (CFTU)

 Operating procedures

Integration of HRM with business strategy:

 Vertical integration

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 Horizontal integration

Vertical integration

Vertical integration is low. The extent to which HR’s activities are aligned with the over all
strategy of business (Askari bank) is low. Branch managers are responsible for these strategies
but HR’s activities are doing help in a way, these provide best personnel at all levels and
responsible for personnel management.

Separation
Target Branches
strategy

Branch managers

There is held annual planning conference every year region-wise at

o North

o Center

o South

Annual planning conference is responsible for making these strategies and checking overall
progress. In this conference branch managers and upper level management review the activities,
do SWOT analysis and check the progress and take necessary actions.

Here HR Strategy is to provide best personnel for taking decisions, for this reason HR people
develop better techniques for recruitment and selection of higher management (CEO, CFO, CCO
and regional managers) and for improving their skills, continuously work on training and
development.

Horizontal integration

Horizontal integration is high or very high. The extent to which all HR’s activities and functions
are related to each others is high. Here the HR strategy is to target the business units for:

 Goal setting of every employee

 Annual appraisal

Performance management which is the function of HRM checks the performance of employee
and according to performance sets the goal like training of the employee or career development.
Is this way HR functions relate with each other

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Compensat Career
Appraisal forms
ion development
Goal setting for every
employee

Business
units
Target
M

H
R

Annual appraisal

The above diagram shows that HRM targets the strategic business units for performing its
functions include; goal setting for employees and annual appraisals. Training & development and
career development are involved in goal setting.

Competitive advantage model:

According to Porter, employers have three basic strategic options in order to gain competitive
advantage

- Cost reduction

- Quality enhancement

- Innovation

A. Recovery of NPLs (non performing loans) is the competitive strategy of Askari bank
which is a strategic option no.1 (cost reduction).

B. Askari bank is enhanced its quality by financing in new sectors like construction,
electronics and chemicals and give small loans to small enterprisers. Online access to
customers for transactions and paying bills and improving quality by handling complaints
and improving service qualities

C. ATM cards/ Debit cards and Credit cards are the innovation strategies of Askari bank.
Online shopping through visa card in almost all world and off-site ATMs are the
competitive strategies of Askari bank

The HR implications of these strategies are:

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HR Practices Competitive strategy

Recovery of NPLs Finances in new Debit cards/ Credit


sectors cards

Resourcing Hire a recovery team Proper recruitment & External sourcing for spark
selection

Development No development Long-term development Do what they want.


(Personal responsibility)

Employee relations No ER ( group based) Unions or well Informal discussions


developed system

Compensation No additional benefits Attractive package Sharing benefits

Performance appraisal Not important much Focus on Concentration on

Hr function No much influence Much influence Supportive

References:

Human Resource Management, Study Pack, Superior University Lahore.

MOBEEN ASLAM BUTT, mobeen.aslam@askaribank.com.pk

http://www.scribd.com/doc/11554838/Askari-Bank-Internship-Report

http://www.askaribank.com.pk/about.php