Habib Bank Limited

Report by
HUMZA 8480
SHARUKH 8481
RIZWAN 8483
KAINAT 4327

Final Report on

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Submitted to
Sir Abdul Haq Ishani

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Table of Contents
Executive Summary.................................................................................................................... 5
Introduction ............................................................................................................................... 6
Habib Bank’s rating ............................................................................................................... 6
Awards won by HBL ............................................................................................................... 7
2010 .................................................................................................................................. 7
2009 .................................................................................................................................. 7
2008 .................................................................................................................................. 7
Vision ..................................................................................................................................... 7
Mission .................................................................................................................................. 7
Values .................................................................................................................................... 7
PRODUCTS OF HBL ................................................................................................................ 8
SERVICE LINE ......................................................................................................................... 8
Planning...................................................................................................................................... 9
FORMAL PLANNING............................................................................................................... 9
INFORMAL PLANNING ........................................................................................................... 9
Open market ......................................................................................................................... 9
For example ...................................................................................................................... 9
Creating need ...................................................................................................................... 10
For Example .................................................................................................................... 10
Short Term goals ................................................................................................................. 10
Long Term Goals .................................................................................................................. 10
MBO or Rule of thumb ........................................................................................................ 10
Managers are not problem solvers in HBL .......................................................................... 11
For example .................................................................................................................... 11
SWOT Analysis ..................................................................................................................... 11
Strengths......................................................................................................................... 11
Weaknesses .................................................................................................................... 11
Opportunities.................................................................................................................. 11
Threats ............................................................................................................................ 11
Leading ..................................................................................................................................... 12
Leading their Employees ..................................................................................................... 12

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Time when tackling is required ........................................................................................... 12

Communication ................................................................................................................... 12
Individual level communication ..................................................................................... 12
Departmental level communication ............................................................................... 12
Communication intervals .................................................................................................... 12
Appraisals for motivation .................................................................................................... 13
Top line managers .......................................................................................................... 13
Middle line managers ..................................................................................................... 13
First line managers ......................................................................................................... 13
Overall methods to motivate employees and keep the workforce healthy .................. 13
JOB SATISFACTION LEVEL .................................................................................................... 14
Job enrichment, job enlargement or job rotation .............................................................. 14
TYPES OF LEADER ................................................................................................................ 14
DEMOCRATIC LEADERS ................................................................................................... 14
Firing in HBL......................................................................................................................... 14
Traits of Manager as a leader at HBL .................................................................................. 15
Conclusion ................................................................................................................................ 16
Recommendation..................................................................................................................... 17
Appendix .................................................................................................................................. 18

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Executive Summary
This report is for the academic purpose it was assigned to us as a project of our course
managerial role in organization behaviour. This report comprises of two management
functions, (planning and leading) and awards achieved by the bank, products and there
service line.

In planning function we have discussed two of its types, formal and in formal. More over we
have scrutinized about the open market, creating needs, communication, long term and
short term goal, MBO or Rule of Thumb and Managers are not the problem solver in HBL.

Leading, the function in which we have elaborated how manager lead their employees,
what are their appraisals for motivation for different hierarchy of management. Then we
have discussed the job satisfaction level with the types of leader and how firing policy is
practiced in HBL further more the skill of a manager are highlighted.

We have ended up our report on conclusion, recommendations and an organizational chart

attached to the appendix.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Introduction
HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL
has grown its branch network and become the largest private sector bank with over 1,700
branches and 2000 ATMs across the country and a customer base exceeding five million
relationships.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to
dominate the commercial banking sector with a major market share in inward foreign
remittances (55%) and loans to small industries, traders and farmers. International
operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and
Maldives and the Netherlands.

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, 41.5% of the shareholding is retained by the
Government of Pakistan (GOP), while the remaining shareholding is held by individuals, local
and foreign institutions and funds including CDC group plc which holds 5% and international
Finance Corporation which holds 3%. i.e. over 170,000 shareholders following the public
listing that took place in July 2007.

With presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal,
Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic
multinational. HBL has the largest Corporate Banking portfolio in the country with an active
Investment Banking arm. It encompasses product offerings and services in Retail Banking
and, in recent years, Consumer Banking as well. HBL is expanding its presence in principal
international markets including the UK, UAE, South and Central Asia, Africa and the Far East.

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.

Habib Bank’s rating

HBL is currently rated AAA (Long term) and A-1+ (Short term) with 'Stable' outlook and has a
balance sheet size of USD 13.82 billion. It is the first Pakistani bank to raise Tier II Capital
from external sources.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Awards won by HBL

During the period under review HBL was conferred with the following awards:

“Best Retail Bank in Pakistan for 2012 by the Asian Banker.”

“Best Bank in Pakistan by Euromoney.”

“Corporate Excellence Award in the Financial Category by Management Association of

Pakistan.”

“Pakistan’s No.1 Foreign Exchange Bank by Euromoney“

2010
'HBL wins Best Emerging Market Banks award in Pakistan 2010'

2009
'The Best Emerging Market Bank in Pakistan'

HBL among Top 500 Global Financial Brands

2008
'Best Bank in Pakistan'

'Most Innovative Global Trade Finance'

'Buzziest Brands'

Vision
“Enabling people to advance with confidence and success”

Mission
“To make our customers prosper, our staff excel and create value for shareholders”

Values
Our values are the fundamental principles that define our culture and arebrought to life in
our attitudes and behavior. It is our values that make us unique and unmistakable. Our
values are defined below

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

DEPARTMENTS OF HBL
• Human Resources

• Corporate Banking

• Foreign exchange depart

• Procurement

• Retail Banking

• Treasury

• Audit

• Compliance

• Risk Management

• Asset Remedial Management (ARM)

• Informational Technology

• Learning & Development

PRODUCTS OF HBL
 Current Account
 Savings account
 Auto finance
 Home finance
 Habib bank value debit card
 Loans
 Habib bank master card
 Habib bank lifestyle
 Foreign currency accounts
 Phone banking

SERVICE LINE
 Consumer banking services
 Cash management services
 Utilities services
 Transferring of money

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Planning
Planning is referred as the basic management function involving formulation of one or more
detailed plans to achieve optimum balance of needs or demands with the available
resources. Planning is the most crucial element for their company. It needs to be done
constantly.

They usually have two types of planning, Formal and Informal.

FORMAL PLANNING
In formal planning, their planning is written down, is specific and involves shared goals for
the organization. It includes all corporate level like hard deposits. In hard deposits, it
includes opening account in universities for Fee submission -NUST, Quaid-e-Azam Medical
Colleges, And ISLAMIC International-and also has Branches in PIA, Board of Intermediate
Secondary Education, and General Head Quarters.

When HBL became Private it started its renewing planning of branches. In which 100
branches were selected as Premium branches and then re-new all the setup of that branch

INFORMAL PLANNING
In informal planning, their planning is not written down. It includes simple account openings
by individuals in deposit branches which should be done in a month or two.

Further in order to launch any product or service they have two types of planning

Open market
In this type of planning they find, explore or know from their sources that this need is yet
not served in the market. After recognizing the authenticity of that need and then planning
on how they will be fulfilling that need of the customers is called open market planning.

For example
A need of retired people or single old people in a home was not yet served and they were
not finding any effective way to pay their utility bills. If the bank recognizes that need and
offers any easy way to deduct their utility bills directly from their account or pension, this
will be known as open market need.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Creating need
In this type of planning they tend to create a need in the market. That thing might not be a
need before but after analyzing the market keenly, a company can create the need.

For Example
After analyzing the behavior of youth of the society towards new technology, bank started a
program of short term and small cash loans. So that youngsters from 18+ can avail that loan
and easily buy their products. Obviously these loans will be secured and backed by some
already account holder of the bank.

Short Term goals

Their short term goals are those goals that are made to achieve within one year.

They have already achieved many mile stones in past. They always want to go to the next
level. At the current time the short term goal of HBL is to be the market leader as they have
been awarded as the best bank. They want to dominate the market by capturing the most
market share. They have targeted mostly the online businesses as they are flourishing most
in the current time and have offered scores of online businesses their portfolio, this is all on
which they are focusing on short term basis.

Long Term Goals

According to them there are not any long term goals of their organization. When ever

MBO or Rule of thumb

Habib Bank Limited strongly believes on the Management by Objectives. They believe that
whatever is happening today or will happen in future is unpredictable and the industry in
which they are working is not that much stable that they can follow the procedures of past.
They believe that drastic times call for drastic measures. They do not hesitate much in even
bending rules a little for the sake of competition, as the market is going violent day by day
and the competition can said as cut throat. For a little more or less charge on interest, or
even giving comfort in charges on cheque books and transaction fee can attract a lot of new
customers.

Also many employees do not consider banking job as a good job because of interest and
other things, employees easily get transferred from a banking organization to any other
good company. So in order to retain employees we need to use different ways.

Not even all this stops on employees, Habib Bank Limited is always looking for new and
latest technology available in the market that is applicable to their business. They never
hesitate in applying new technology and giving trainings to their employees.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Managers are not problem solvers in HBL

In HBL fixing a problem is not the job of managers. It is the job of operations. Management’s
job is to prevent the problem. A good worker that is dedicated and loyal will fix a problem
when you know something has gone wrong but a good manager will fix things even when
there is no problem. He will make the work or the things more efficient and effective.
Managers fix things when nothing is wrong. There’s always a better way to perform a task,
and manager’s job is to find these ways

For example
If a person have got assigned to any work activity which requires 7 days to complete that
task and the employees achieve that task in the 7 days. This is not a failure but if this can get
completed in 7 days why should not we try completing it in 4 days. Completing that task in 7
days is not a failure but if we complete it in less than 7 days this can be better for
organization. When nothing is going wrong and the manager makes the work more efficient
and effective this is called management

SWOT Analysis

Strengths
 HBL has a successful history of over 65 years of rich experience
 HBL has the largest branch network among private banks of Pakistan
 HBL has got loyal customers
 HBL is recognized internationally

Weaknesses
 Lack of communication between bank and customers about terms and conditions of
products and services
 Workforce is not greatly motivated
 Although overstaffing has decreased but still it is an issue for HBL

Opportunities
 A separate type of bank account that is suitable for ladies like they have for children
 HBL can offer internet banking as e commerce is flourishing a lot in Pakistan
nowadays

Threats
 Highly attractive services offered by other private banks, like laptop financing
 Islamic banking that is being practiced in other private banks, by which they are
attracting more customers.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Leading
“Everybody in the team is not an ace neither everybody in a team is vain.”

Leading their Employees

Basically the managers need to keep a keen eye on every individual employee. A manager
decides this by observing his sub ordinates. He knows the best with whom should he be
strict and on whom he can rely. Managers of HBL give as much work to their sub ordinates
as possible in order to enhance their potential and also if a manager does all the work by
himself, he surely is a bad manager.

Time when tackling is required

In Habib Bank Limited, if the goals of the overall company are getting achieved they do not
care which region is doing good or bad work. If things are going ok, they do not interrupt
them or observe them. In the case of problem or when goals are not achieved they take
controlling actions.

Communication

Individual level communication

Email

Notes

Face to face communication

Departmental level communication

Meetings

Seminars

Conferences

Communication intervals
Officially communicating is not decided, depends on the function to function. Depends on
the nature of work. Usually they do not need to talk to people every day however if any
project or campaign is going on at least in a week they need to get the report on weekly
basis. To find out the gaps or short falls that has taken place. Evaluating the performance
with respect to other companies that if they are performing well then the problem is not in
environment but internally in the company.Frequency and level of communication depends
in the business you are in.
Managerial Role In Organization Behaviour Abdul Haq Ishani
 Habib Bank Limited

Appraisals for motivation

Top line managers
The top level managers are usually already motivated because of their loyalty towards the
company. Their actions represent the company and so does the company represent them.
They do not need much motivation, all they need is to know that they are the part of
company which cannot be replaced this boosts their self-esteem.

Middle line managers

Mostly HBL gives appraisals through e-mails and promotion to consistent good working
employees. Middle line managers are mostly motivated through their appreciation in front
of their colleagues. They try to differentiate themselves from other employees so
appreciating them in front of others is the best way to motivate them. Also empowering the
middle line managers gives them confidence and boosts their self-esteem that can help
greatly in motivating them

First line managers

First line managers are mostly motivated by incentives given to them. A bonus, a couple of
more holidays in a month or an increase in pay can do the work for motivating them.

Overall methods to motivate employees and keep the workforce healthy

Salary increments

Praise or Recognition of work

Get together

Arranged Picnics

Job Security

Manager of the month award

The best performer award

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

JOB SATISFACTION LEVEL

Job satisfaction is employee common approach towards his/her job. At HBL, job satisfaction
level is average. The reason of this level of satisfaction is competition with other private
banks and other companies.

Job enrichment, job enlargement or job rotation

At HBL, they prefer two, job enrichment and job rotation. To engage employees, managers
give them different sort of assignments. Changing their positions, so that employee feels
that organization know and value all their efforts for the organization. The environment in
HBL is very much dynamic now; it has old employee’s experience and new employee’s
energy and ambitions.

TYPES OF LEADER
Three fundamental types of leader are;

• Dictator

• Democratic

• Laissez-fair

HBL mostly has the democratic leadership style.

DEMOCRATIC LEADERS
HBL has democratic leadership since major portion of bank is de-centralized that’s why each
leader has the complete power of decision making, but they are working collaboratively in
whole organization with each other.

Firing in HBL
HBL do not fire their employees easily or suddenly just because they fail to achieve their
target. But if someone is constantly giving bad performance then the manager has to decide
if this employee has lost his worth for the organization.However the main thing is to identify
the gap,it is manager’s responsibility at every level not to fire the employee but to identify
the gaps that why the person is getting failed. A manager should always take into account
the humanity. May be that employee is suffering from any other issue, like he may have
trouble with English, or maybe he is not good at operating Microsoft excel. The problem can
be solved through a little training, counseling, or any short course. This is manager’s

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

responsibility to identify the gaps and thrive to help and to fix those gaps. However, if the
failure is constant he may then need to fire that employee.

Traits of Manager as a leader at HBL

The managers as leaders of HBL have the following traits and skills in themselves.

• Decision making

• Risk taking and risk bearing

• Pressure taking

• Communication command

• Sincerity

• Strong vision

• Interpersonal skills

• Market forecasting skills

• Constancy

• Step forward

• Obedience

• Competitive skills

• Believe on equality

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Conclusion
We can conclude that in HBL the planning and leading functions are performing very
well as they engage every single person In decision making process and ask their
team member for their suggestions negotiate with them and then come up with
creative ideas or solutions. It is clearly seen that they are dynamic with their
environment and don’t hesitate to change their procedures when required and that’s
how HBL praises from different agencies in the form of awards. However, lack of
long term goals can be seen clearly.

On the leading point of view the managers at HBL are highly cooperative with their
sub-ordinates and try to enhance their skills by giving them opportunity to make self-
decisions and at the same time examine them, if they succeed they reward them
according to their level of need which differ from individual to individual, However, if
uncertainly their work didn’t the work get done then managers find those gaps and
thrive to fix those gaps. Managers seek different tools to keep their employees
motivated.

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Recommendation
Although HBL is doing well and have high aims to be the market leader so we
recommend them to look at our suggestion for each function: Planning and leading

There should be long term goals specification;they should not just rely on short
term goals.

In fact their short term goal which is to be the market leader should have been
their long term goal. Their short term goals should have been like targeting an
amount of market share in a year or six months.

The learning environment is needed where people within the organization

disperse information among themselves.

They should examine the departments even if they are achieving the goals, in
order to avoid any sudden uncertainty in future

They should adopt new technology as soon as it hits the market. Not only
adapting is important but continuous training and seminars for the skills
development of employees in using that technology are required.

Inspire creativity. New eyes looking at old positions open new possibilities.

Develop leaders with wide knowledge of the organization. They should constantly
do job enlargement with their employees who have potential in them.

Enhance new employee retention.They can retain their employees by giving them
better salary packages or perks.

They should also be performing job enlargement, so that they can know if the
employee is willing to work and to test his patience

Managerial Role In Organization Behaviour Abdul Haq Ishani

 Habib Bank Limited

Appendix

HBL Organizational Structure

In 2009 HBL change its staff catering and introduced international standards cater in
organization.

The position of the staff is as of following order-top to bottom

GM- General Manager (pay band II)

GM-General Manager (pay band I)

DGM- Deputy General Manager (Pay band II)

DGM-Deputy General Manager (Pay band I)

SM- Senior Manager (pay band II)

SM-Senior Manager (pay band I)

AM- Assistant Manager (pay band II)

AM-Assistant Manager (pay band I)

OFFICER- (pay band II)

OFFICER- (pay band I)

ASSITANT

Managerial Role In Organization Behaviour Abdul Haq Ishani