Introduction to 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.

History of the Company:

Mohammed Ali Jinnah, Pakistan's founding father, realized the importance of financial intermediation while he was campaigning for the creation of a separate homeland for the Muslims of India. He persuaded the Habib family to establish a commercial bank that could serve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with HO in Bombay (now Mumbai), and fixed capital of 25,000 rupees. The bank played an important role in mobilizing funds from the Muslim community to finance the All-India Muslim League's campaign for the establishment of Pakistan. Habib Bank also played an important role in channeling relief funds to the people hurt in the communal riots and violence that preceded the departure of the British from India. After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first commercial bank of the newly formed Islamic Republic of Pakistan. 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.


Habib Bank offers the basic range of banking services to its customers, to include Commercial, Corporate, Investment, and Retail Banking, Treasury, and Islamic Banking.

Company Description:
HBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas.

Brand of HBL:
HBL says “Our brand identity is the outward expression of what we stand for as an organization. This is summarized in our vision, mission and is supported by our values.”

Vision of HBL:

Enabling people to advance with confidence and success”

Mission & 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.

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

Values of HBL:
HBL’s values are the fundamental principles that define its culture and are brought to life in its attitudes and behavior. It is company’s values that make its unique and unmistakable. Company values are defined below: • Excellence

Integrity: HBL is the leading bank in Pakistan and its success depends upon trust.705 domestic branches.• • • • Integrity Customer focus Meritocracy Progressiveness Excellence: This is at the core of everything HBL terms of the service HBL offers. the Middle East. HBL believes in rewarding achievement and in providing first-class career opportunities for all. Meritocracy: HBL believes in giving opportunities and advantages to its employees on the basis of their ability. Its customers and society in general . Operational Structure: HBL is one of the largest commercial bank of Pakistan. Only through being the very best . Asia. its products and premises . 3 HBL wholly owned Subsidiaries . It accounts for a substantial share (20%) of the total commercial banking market in Pakistan with a network of 1. Far East. Africa and the United States. Customer focus: HBL understands fully the needs of its customers and adapts its products and services to meet these. Progressiveness: HBL believes in the advancement of society through the adoption of enlightened working practices. and a spirit of enterprise. innovative new products and processes.expect it to possess and steadfastly adhere to high moral principles and professional standards. giving their customers an abundance of choice. HBL always strives to put the satisfaction of its customers first. 55 overseas branches in 26 countries spread over Europe. The markets in which HBL operates are becoming increasingly competitive.can it hope to be successful and grow.

A Household Name: HBL's brand name is well established. 2 Joint Ventures namely Habib Nigeria Bank Ltd. trade finance. . Karachi. It has an extensive domestic network of 1705 branches reaching virtually every segment of the Pakistani economy. Habib Finance International LTD (Hong Kong) and Habib Finance Australia Ltd. (40%) and Himalayan Bank Ltd. corporate and institutional banking. consumer finance and credit cards. Country AFRICA Kenya Mauritius Seychelles Sweden ASIA Bangladesh Fiji Islands Maldives Singapore Sri Lanka Karachi EPZ MIDDLE EAST Bahrain Lebanon Oman UAE EUROPE Belgium France Netherlands Status Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation /OBU Branch Operation Branch Operation Branch Operation /OBU Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Opened 1956 1964 1976 1982 1976 1991 1976 1971 1951 1983 1969 1964 1972 1966 1975 1980 1979 Branches 5 4 1 1 2 1 1 1 3 1 3 1 11 8 1 1 1 .namely Habib Bank Financial Services (PVT) LTD. – Sydney. Domestic and International Networks: Major Local Market Presence: HBL is one of the largest commercial banks in Pakistan representing approximately 20% of the assets and deposits of the banking sector. A Full Service Bank: HBL provides its customers a complete range of banking products and services including retail banking. (20%) and 2 representative offices in Iran and Egypt. An International Bank: HBL has a presence globally through an extensive international branch network described in the table below.

HBL constructed Habib Bank Plaza in Karachi to commemorate the bank’s 25th Anniversary.849.30 0. 1971 HBL opened an OBU in Singapore and a branch in New York. However. . of Pakistan Other Public Bodies Outstanding Shares (1. 1952 HBL established Habib Bank (Overseas). 1957 or 1958 HBL opened a branch in Aden. 1956 HBL opened first of 5 branches in Kenya.05 100 National and International events of HBL: • • • • • • • • • • • 1951 HBL opened the first of 3 branches in Sri Lanka.24 1. 1966 HBL opened the first of 8 branches in the UAE. 1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut. 1972 HBL opened the first of 11 branches in Oman.217.Turkey UK USA Branch Operation Branch Operation Branch Operation 1983 1961 1971 1 6 1 Ownership Structure Shareholder State Bank of Pakistan Islamic Republic of Pakistan State Life Insurance Corp.500) Percentage (%) 92.23 0. 1969 HBL opened first of 3 branches and an OBU in Bahrain. 1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank (Overseas). HB’s branch in Aden is nationalized. 1961 HBL opened the first of what would become 6 branches in the UK.

BCCI. 1984 HBL established Habib American Bank in New York with a branch each in Manhattan and Queens. HBL also opened a representative office in Teheran. 1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul. 1982 HBL opened a branch in Khartoum. 2000 HBL established Habib Canadian Bank. 1976 HBL opened a branch in the Seychelles. and Habib Finance International Limited. a subsidiary of the Aga Khan Development Network. against an investment of PKR 22. and took over the Paksistani branches of failed bank. • • 1987 HBL opened in Australia. 1991 The Habib Group established a separate private bank. 1980 HBL opened a branch in Paris and another in Hong Kong. 1995 HBL established a representative office in Cairo. 1979 HBL opened a branch in the Netherlands. 1990s HBL established Habib Finance (Australia). • • • • • 1992 In Nepal HBL acquired 20% of Himalayan Bank. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its 6 branches and Allied . the Bank AL Habib. a Pakistani bank. 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had granted the Aga Khan Fund for Economic Development (AKFED). Hong Kong.• • • • • • • • 1975 HBL opened a branch in Belgium. HBL opened a branch in the Fiji Islands. rights to 51% of the shareholding in HBL. 2002 On June 13. • HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. after private banking was re-established in Pakistan. The issue was resolved by converting the operations to a subsidiary. HBL also merged with Standard Bank. and a US International Banking Facility. HBL also opened a branch in California. and a branch in the Maldives. the first of two branches in Bangladesh. 1981 HBL established Nigeria Habib Bank with 40% ownership.409 billion (USD 389 million).

Iain Donald Cheyne Mr.its 4). in which Habib Bank has a 90.5 percent. The Board of Directors was reconstituted to have four AKFED nominees. 2004 On February 26. while Allied Bank has 9. both Allied and Habib Bank close down all independent operations in the UK. including the Chairman and the President/CEO and three Government of Pakistan nominees. into a new bank.5 percent shareholding. • 2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South Pacific. Simultaneously with the transfer of business to the new bank. Zakir Mahmood Iain Donald Cheyne Sajid Zahid Ahmed Jawad Mushtaq Malik Yasin Malik Chairman President & CEO Director Director Director Director Director Board Committees Audit Committee • • Mr. the Government of Pakistan handed over management control of Habib Bank to AKFED. Sajid Zahid Chairman . Board of Directors • • • • • • • Sultan Ali Allana R. • • 2003 HBL received permission to open a branch in Afghanistan. called Habib-Allied International Bank.

Phone: 051-2872203 & 051-2821183 . Mushtaq Malik Chairman Member Member Human Resource Committee • • • Mr. Habib Bank Tower Jinnah Avenue Islamabad. Zakir Mahmood Mr. Nausheen Ahmad Mahmood Yousuf Mandviwalla Company Secretary Legal Advisor Bar-at-Law Auditors • • KPMG Taseer Hadi & Co. R. R. Sajid Zahid Chairman Member Member Group Chief Financial Officer • • • Mr. Chartered Accountants Registered Office 4th Floor. Pakistan. Sultan Ali Allana Mr.Member • Mr. Ayaz Ahmed Ms. Ahmed Jawad Member Risk Management Committee • • • Mr. Zakir Mahmood Mr. Sultan Ali Allana Mr.

The pending lawsuit alleges the bank and its subsidiaries knowingly conducted financial transactions and provided account services on behalf of Al Akhtar Trust. No. 3 On July 18. Ziauddin Ahmed Road Karachi. However.hbl. 2007. the widow of Wall Street Journal reporter Daniel Pearl. a Pakistani based charity Treasury www. torture and murder of her husband. filed a lawsuit against Habib Bank Ltd over the 2002 abduction.hblibank. Ground Floor State Life Internet Banking www. Websites Corporate www. HBL claims to have froze Al Akhtar Trust’s accounts several years before Daniel Pearl’s Famous Controversy: Habib bank has long been scrutinized by intelligence officials monitoring terrorist money flows.hblgtr. Al Akhtar Trust’s accounts have been used to provide financial support to terrorists. Chundrigar Road Karachi . .Fax: 051-2872205 Head Office Habib Bank Plaza I.75650.) Ltd. Mariane Pearl. Phone: 021-2418000 [50 lines] Fax: 021-9217511 Registrars THK Associates (Pvt. Pakistan.

though none were filed. Lawyers for Mariane Pearl noted that Habib Bank Limited and the other defendants in the case had not answered the lawsuit filed in July (although Habib Bank Limited had denied ever supporting terrorism) . Habib Bank Limited has also been said to be involved in large sums of money transactions by the Pakistani intelligence agency the Inter Services Intelligence (ISI).S. Corporate Strategy and Businesses: Growth Maintaining a mix of short & long term deposits to minimize the cost of funds. The U. 2007. the Fed ordered HBL to strengthen its transaction monitoring systems and the filing of "suspicious activity reports" on transactions that do not fit the routine business patterns of the bank's customer base. Advani "My Country My Life" in which he points out that the ISI's dealings in drugs overseas mainly involves transactions through Habib Bank Limited and the funds are then transferred by various bank channels to separatist groups in various states in India.S. Federal Reserve Board threatened formal charges. This is further supported by the recent book by L. Pearl's lawsuit against HBL was formally dropped. After the U. Habib Bank Limited agreed to strengthen the banks compliance. but they otherwise did not explain their reason for dropping the action. More specifically. Federal Reserve Board and the New York State Banking Department criticized Habib Bank Limited for failing to address deficiencies in its compliance with U.S.On October 24.K. antimoney laundering laws. Asset Quality  Stringent Risk Management  Unified IT System  Intensive Training and Professional Recruitment Focus  Re-organization of the Consumer and Retail Banking Businesses  IT system enhancement .

10 branches with over 500 customers • Specializes in working capital. Private Placements. market share corporate loans of 15% with participation in more than 80% of all major transactions. local private sector corporate and state owned entities Largest Corporate Banking in Pakistan • Loan portfolio US$ 4.734 branches 20% deposits and 6% advances • • Largest customer deposit base: 5mn+ Low cost/stable deposits 48% of total deposits Agriculture Financing Serves rural customer needs for agricultural inputs. Investment Banking Corporate M&A Advisory. structured project finance & government commodity operations.2bn during peak season Dominant bank in this segment: 700+ rural branches Islamic Banking • Exclusive Islamic Banking branch network for both assets and liabilities. Debt and Equity Capital Markets. Leverage Finance and Privatization Advisory .5 bn. storage facilities and Mechanization. trade. Corporate Banking Serves large corporate customers: multinationals. Provides short and medium term loans • • Disbursement exceeds US$0. Product offering enhancement  Advancement of operations in urban areas Businesses Retail Banking Deposit Mobilization • Largest branch network in Pakistan Urban .703 branches 80% deposits and 94% advances Rural .

Stock Market and Multi Assets Funds. 2007 & 2008 respectively. 3364 officers . 2350 officers Grade-I. Treasury Money market. etc. Housing Finance and Balance Transfer Facility VISA Debit Card. Commercial Banking Middle Market (customers with annual revenue of more than US$ 5 mn) • Leading position in a competitive market with US$ 350 mn portfolio 18 branches. Sale/purchase of foreign currency & remittances. Leasing business with annual growth of over 15%.) Ltd. Consumer Durables. Auto Finance.• • Established itself as a premier player in a short time Handled over 80% of all major transactions taking place in Pakistan. 1500 customers Consumer Banking Personal Loans. 4108 officers Grade-II. Forex and Primary dealer in government paper New products launched: Derivatives (Interest Rate Swaps. 420 Vice Presidents. Credit Card & CarToCar launched in 2005. 831 Assistant Vice Presidents. 154 Senior Vice Presidents. HBL has very active and one of the best HR department in Pakistan as well as world wide. Introduction of Human resource Management department of HBL: Human Resource management structure: The HRM department plays an important role in value of any company.) Domestic Subsidiaries • • • Asset Management Habib Currency Exchange (Pvt. First Habib Modaraba Launched Income. FRAs. The structure is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice Presidents.

HBL is planning to expand its business and branches in more countries. Functional Strategy: . Differentiation: HBL’s strategy is to provide unique banking services to its customers in banking sectors to make itself valuable for its customers. Acting upon this strategy HBL has been expanded abroad.Grade-III and 10658 Clerical/Non-Clerical employees. Strategic planning of HBL: HBL uses two types of Corporate-level strategies • • Diversification strategy Geographic expansion strategy Diversification Strategy: It implies that HBL will expand by adding new service lines. With the passage of intervals HBL is used to introduce new banking services. The total staffing as per 1999 balance sheet figures is 23022. Business level strategies used by HBL are • • • Cost leadership Differentiation Focus Cost leadership: HBL aim is to become low-cost leader in banking sectors that is why HBL is providing effective services in low cost than other banks in Pakistan. Geographic expansion strategy: It takes the company abroad. The abroad branches are mentioned above in introduction section. Focus: HBL provides banking services to its customer in that way that customer cannot get that services from other competitors.

Questionnaires: In questionnaire the employees solve the fill out questionnaires to describe their jobrelated duties and responsibilities. Individual employees. 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.HBL identifies basic courses of action that each department pursues in order to get basic goals and objectives of HBL. group of employees and supervisors with vast knowledge about jobs are interviewed. Harmony of departments towards HBL’s single goal makes it unique in the competitive market. The format of interview is Structured and unstructured. The formats of questionnaires are either structured or open ended. compensation. 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. training and in resolving other issues which HBL faces. The methods which are used in collecting job analysis information are • • The interview Questionnaires The Interview for job analysis: Interview is a big source in collecting information in the job analysis. Quantitative job analysis techniques: . performance appraisal. HBL takes Job analysis services from Sidat Hyder Morshed Association (SHMA) which is the biggest HR consulting firm in Pakistan. Job analysis is every important as job analysis information is used in Selecting and recruiting.

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. classified.Following methods are also used in job analysis which are called quantitative job analysis techniques The position analysis questionnaire (PAQ): A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs. Training and Development 3. HR manual contains five processes 1. Compensation 5. The Department of Labor (DOL) procedure: A standardized method by which different jobs can be quantitatively rated. chain of command relationships). Selecting and Recruiting: . job summary. responsibilities and duties. Job description: After getting job analysis information the next step is to describe job description which contains the points of job identification. standard occupational classifications and standard of performance and working conditions. Performance Appraisal 4. and compared. Selecting and Recruiting 2. Employee relation 1.

In recruitment process first of all planning session is occurred. 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. This process of deciding what positions the firm will have to fill. Outside sources: . Personnel or employment planning embraces all future positions. from maintenance clerk to CEO. Selecting and recruiting process according to HBL The diagram below represents the process on which HBL’s selection is based. If there is a vacancy of executive job then succession planning is done for filling that vacant place. and how to fill them.The recruitment and selection process starts with employment planning. in planning session it is determined that which section HBL will have to fill and how to fill. 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. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team.

Walk-ins Finding internal candidates: 1. Sidat Hyder Morched Association works for outsourcing for HBL. Rehiring former employees Prescreening and short listing: Many candidates apply for job in response to vacancy ads by submitting their CVs. Formats used in selection interview: • • • Structured/Directed Unstructured/Non directed Penal interview 1. Test/ interview: In this process short listed candidates are called for test and interview according to nature of their applied jobs. Employee referrals 4. The Nation. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board. Nawa-e-Waqt. After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume. 2. Internet job sites (rozee. A selection interview is the procedure designed to predict future job performance on the basis of applicant’s oral responses to oral inquiries. Trade and professional journals (Aurora Magazine) • Outside sources of candidates: 1. Selection Interview: Selection interview is conducted for short listed candidates. Job Posting 2. Dawn and Daily Khabrein Modes of Interview: .HBL uses outside sources for recruitment which are • Advertising etc) 2. College recruitment 3. Newspapers (Daily Jung.

• Puzzle questions: Recruiters for technical and finance job use questions to pose problems requiring unique solutions to see how candidates think under pressure. Types of test: Generally two types of tests are taken in HBL • Tests of Cognitive ability . • 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. Testing: Organizational performance always depends in part on subordinates having the right skills and attributes. • Structured sequential interview An interview in which the applicant is interviewed sequentially by several persons. 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. These sorts of questions are asked according to high designation of candidate. Types of questions: • Situational: A series of job-related questions that focus on how the candidate would behave in a given situation.An interview in which a group of interviewers questions the applicant. Keep in view this point HBL tries its level best to hire highly skilled and suitable employee for each job. • Job related: 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. each rates the applicant on a standard form.

verbal comprehension. such as inductive and deductive reasoning. HBL adopts recruitment process as • • • • Entry level programs Experienced professionals Campus recruitment Rehiring Entry Level Programs: HBL’s Entry-Level Programs are structured to ensure that you will quickly assume responsibility for concrete tasks and important projects. verbal fluency. and numerical ability are aptitude tests. o Tests of physical abilities Tests that measure static strength. HBL encourages you to explore this section to find out about current job openings and how to submit your resume. Aptitude tests Tests that measure specific mental abilities. memory. and stamina are physical. and numerical ability are intelligence tests. body coordination.• Physical tests o Cognitive test abilities consists of 1. Rotational assignments across different business units provide a comprehensive and valuable experience in a relatively short amount of time. Intelligence Tests Tests of general intellectual abilities that measure a range of abilities. Experienced Level Program: HBL recruits experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. 2. HBL’s dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities. including memory. Campus recruitment: . vocabulary. dynamic strength. Job related to guards and deliverers go through this sort of test.

Operations. Enthusiastic and talented youth form the backbone of its banking operations and are nurtured to become future leaders at HBL. including Finance. vision. Rehiring Former employees: It is an internal hiring source. Final Selection: After going trough all the processes the best candidates according to HBL’s selection boards are selected. As part of HBL’s human resource strategy. values. To attract the best young talent. Training and development: . HBL visits various universities across the country to induct & groom fresh business graduates every year. But this process is practiced very rarely. mission.HBL is proud of its ability to nurture individuals and empower them to hone their talents. 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 2. Rehiring the former employees is the process in which HBL rehires the former employees. Information Technology and Human Resources. future career prospects and overall business strategies. HBL actively participates in campus seminars by giving presentations that highlight HBL’s background. recruitment & selection process. HBL size gives itself the unique ability to provide fast growth and significant responsibility early on in a career with multiple avenues to reach the top. Marketing. HBL’s resource department employs a pro-active strategy. HBL hires fresh talent on a permanent basis and offer a wide range of career opportunities across all functions.

and activities. including workbooks. Methods of OJT are – – – – Coaching or understudy Job rotation Special assignments Action Learning . Training methods used by HBL: • • • • • On-the-job Training Off-the-job Training Apprenticeship Training Informal learning Effective lectures On-the-job Training: Having a person learn a job by actually doing the job is OJT.Training is the process of teaching new employees the basic skills they need to perform their jobs and development is result of that training.  Instructional design: Produce the training program content.  Implement the program: Actually training the targeted employee group. For training and developing HBL follows five steps process of training and development  Needs analysis: Identify job performance skills needed. • Performance analysis: After analyze the main tasks required in performing jobs it is verified that there is a performance deficiency and determining whether that deficiency should be corrected through training or through some other means (such as transferring the employee). exercises.  Validation: Presenting (trying out) the training to a small representative audience. If there is found some deficiency in performing job then training is highly recommended to recover deficiencies. • Task analysis: In this area a detailed study of a job to identify the specific skills required.  Evaluation: Assesses the program’s successes or failures. and develop objectives. assess prospective trainee’s skills. especially for new employees are analyzed.

It is done at all levels of job. employee get training. This OJT method is just for managerial level employees. New employees are trained through coaching and old employees are also trained through this method like when some new innovation is introduced old employees are trained in order to handle that new innovation. Off-the-job training methods are • • Case study method Outside seminars Case study methods: special case studies are given to employees which contains some dilemma about banking sector. These assignments are actually related to tasks within the branch by achieving those tasks assigned by trainer. In 2008 all managers have been trained to operate Misys Software (Automation of service provision and book management). Outside seminars: HBL encourages its employees to participate in the seminars arranged by banking sectors not just in the Pakistan but also beyond the boarders. By participating in outside seminars employee gets authentic knowledge about the new horizons of banking sector which is useful for HBL and makes it leading bank in Pakistan. Action Learning: Management trainees are allowed to work full-time analyzing and solving problems in other departments. Job rotation is usually done at managerial level. the latter is responsible for the trainee’s coaching.Coaching or understudy: It is the OJT method in which employee is coached and taught by profession that how to do the job in order to meet HBL’s goals and objectives. HBL’s Manager Associate (MA) program is used for job rotation training. This method of training is only for managerial level employees. Job Rotation: Moving a trainee from department to department to broaden his or her experience and identify strong and weak points. . Off-the-job Training: It is the method which is opposite to the OJT. By solving those case study problems employee gets training to take bold and effective decision in crucial situations. Special Assignments: Special assignments are also given to employees for special training. At managerial level the trainee works directly with a senior manager or with the person he or she is to replace. In this method employee does not get training at his/her work place.

Succession Planning: It is actually management developing program. Effective Lectures: Lectures about jobs are also delivered. succession planning is done. changing attitudes. or increasing skills. Succession planning is a process through which senior-level openings are planned for and eventually filled. Management development is attempt to improve current or future management performance by imparting knowledge. Informal Learning: The majority of what employees learn on the job they learn through informal means of performing their jobs on a daily basis. Training and development programs at HBL: HBL uses following programs for training and development • • • • Management Trainee Management associate Cash officers Internships . Create replacement charts.Apprenticeship Training: A structured process by which employees become skilled workers through a combination of classroom instruction and on-the-job training. The main purposes of succession planning are Anticipate management needs. It is actually combination of OJT and lectures delivered to employees. In order to achieve management development. These lectures are delivered to new employees as well as senior level employees and managerial level too. MT is defined in the following section of Training and developing methods. In these lectures employees are prepared for facing new challenges in the banking sectors and also told them how to achieve those challenges. HBL’s Management Trainee (MT) program deals with succession planning. It may be for both levels of managerial and fresh employee. Review firm’s management skills inventory. Begin management development. In this method employee is first given the lecture about his/her job and after that implementation of lecture in practical field is observed.

At HBL. The program is geared towards providing challenging work assignments complemented by a learning component for select individuals from reputable universities.Management Trainee: HBL’s Management Trainee (MT) program looks for highly motivated individuals who exhibit the potential to excel as future leaders. the MT program offers extensive interactive classroom training. these individuals must exhibit a proven ability to add value and act as agents of change. Energetic and focused graduates from HEC recognized institutions with good communication and interpersonal skills qualify for HBL’s Cash Officers Program. During this program. Before being placed at HBL branches. internees can support their career goals by using the internship as a launching . The program involves an extensive one-month training period based on branch banking operations before placement in the branches. This provides associates with the expertise required to handle supervisory and administrative tasks that will result in the development of successful business managers. Management associate: HBL’s Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. The objective of the program is to realize potential and translate the experience into a successful banking career. on the job rotations and personal mentoring from senior management to provide a comprehensive learning experience. It provides accelerated development opportunities across HBL’s branch network of Retail. Through the 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. Candidates in this program are the bank’s ambassadors and must have exemplary skills in dealing with clients. Corporate & Commercial banking. Internships: HBL’s Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. Cash officers: HBL’s Cash Officers Program catapults successful candidates to the front lines of the bank.

At HBL growth is not a function of time but rather of performance. the role that you play within the organization will accelerate to reflect your input. AREA/factors contains five kind of factors which are • • • • • A-Productivity B-Individual \attributes C-Technology D-Customer Service E-Personal Each area is further categorized in different factors. performance appraisal. FORM B2 contains appraisal for Clerical staff at branch or Field Offices there are two main headings Area/factors and level of achievement points. D (0-1) and N/A. Area A-Productivity contains 1. HBL defines a clear path for you to contribute to the organization’s overall goals. Job knowledge . Performance Appraisal form of HBL: HBL’s performance appraisal form contains two sheets. Level of achievement point contains five points ratings A (4). peppered with regular reviews and feedback to help you gauge your progress. Performance Management and appraisal: Evaluating an employee’s current and past performance relative to its performance standards is called performance appraisal.pad for creating contacts with professionals in the field and identifying their own competencies to build a successful career with HBL. and development into a single common system to ensure that employee’s performance is according to company’s aims is called performance management. 3. HBL generally uses BARS (Behaviorally anchored rating scale) it is an appraisal method that uses quantified scale with specific narrative examples of good and poor performance. B (3). As your performance improves. one is FORM B2 and other is FORM B3. Performance management and appraisal at HBL: HBL’s performance management and reward systems ensure that goals are met in an effective and efficient manner. A process that consolidates goal settings. C (2).

Initiative (eagerness to learn. Reaction to responsibility 4. Dispatch of requisite statements 19. Maintenance of guns in order 20. Willingness & Ability to work with other units/people 9. Sense of responsibility 5. Quality of work 23. Filing and record keeping 25. Volume of Work Handled 7. Zero theft 21. Typing/data entry speed 26. Deposit Mobilization /saving/current CPDC etc 12. Hajj application target 15. enlarge knowledge) 3. Timely Balancing of branch ledger/books etc 16. Professional/technical knowledge & competency 2. Oral communication Ability 6. Delivery of letter/Dak in time 22. Written communication ability . Accuracy in counting/cash handling & counting speed 17. Ability to write Effectively 10. Adoptability of new assignments 11. Speed of work 24. Number of fresh account arranged 13.2. Nothing of Stop Payment Instruction 6. Accuracy & Attention to Detail 8. Typing/data entry accuracy B-Individual Attributes contains 1. Followed Return unpaid cheques 5. Timely Lodgment of Clearing 4. Receiving of payments of utilities 18. TD clearing/Bills Ledger Posting 3. Reduction in customer complaint 14.

Also the signatures of appraisee and appraiser are taken. Cash excess/shortage situation 9. Leave record 9. Grooming 5. Ability to work without supervision 11. Attendance record 10. Creative response to customer needs 4. Attitude 7. Punctuality Each factor is marked tick against level of achievement and in the end total points scored is written in the specific box. Integrity & loyalty 4. Appearance 3. Knowledge of computer 2. Rapport with customer 3. Courtesy to Customer 2. Business sense (maximum revenue/ minimum cost) E-Personal contains 1. Performing under pressure 10. Manner of speech 6. Intelligence 8. Health & energy 2. Willing to work after office hours C-Technology contains 1.7. Knowledge of internet & E-mail D-Customer contains 1. FORM B3: . Sorting of notes 8.

but it is not necessary. D. After it final acceptance of appraisee is also taken along with signatures.This form contains two big boxes. C. In this box appraiser gives the overall performance grade to appraisee according to B2 form and the grade is given in form of A. inefficient money in the account of customers or other reasons cause refusal of cheques by State Bank. In this box supervisor gives comments about appraisee strengths and further appraisee’s development needs (need to improve academic & professional qualification). His shows how much an employee is expert and clear in indicating or posting of ledger regularly. In performance appraisal it is assessed that whether employee is fulfilling his job well or not and on the basis of his performance he is given points. First box is about Development Plan/ Supervisor comments. Timely Lodgement of clearing: This is the job in which the employee of HBL is to present the cheques of other banks. Noting of Stop payment Instruction: In this job employee notes the stop payment instruction due to lose of cheques by customer. Following is some brief detail about appraisal areas A-Productivity: Productivity is actually about the performance of employee in the clerical field. Following factors of Productivity are defined briefly. Follow return unpaid cheques: In this job the employee is to return the unpaid cheques to the bank before 3 pm which are rejected by State Bank due to some incompleteness like absence of signatures. B. In this assessment it is determined whether employee is punctual in presenting cheques to State Bank in the specific time. Job knowledge: It is first and basic factor of productivity. Then overall assessment is reviewed by reviewer and reviewer gives its comments too. Second box is called overall assessment box. It indicates that how much effectively and efficiently an employee performs its duty and how much employee is committed with the achievement of organizational goals and objective. Then comments of appraisee is also taken in form of agree/disagree. This factor shows that how much employee has awareness about his/her job. If customer loses his/her cheques then he/she has to tell about lost cheques to the branch of HBL and in response the employee . TD clearing/Bill ledger posting: This productive factor indicates the ability of employee about ledger posting of HBL. which are given by customers for depositing in their accounts in the State Bank before 10 o’clock.

On the basis of balancing of ledger in time the employee is given grade points on appraisal sheet. Each employee is given with the target of submission Haj application. On the basis of submitted target Haj application employee gets point ratings on appraisal form. Adoptability of new assignments: In this job it is determined how much employee is able adopt new assignments related to his/her job. Reduction in customer complaint: This job is related with customer service member. In this assessment it is appraised that how much the employee has arranged newly opened accounts and on the basis of number the employee is granted with grade on the appraisal sheet. Accuracy & attention to detail: In this job it is indicated that how much an employee is attentive and accurate in noting down the job whether he/she is performing at desired level or to note down the stop payment and also feed this information in the computer for database record in order to restrict misuse of the lost cheques. Ability to write effectively: In this assessment it is noted that how much employee has effective skills of writing which matters in reporting or hand written application. Volume of work handled: In this assessment it is noted that how much volume of task or work is being handled by employee and on the basis of volume of work handled the employee gets points of achievement against the block in appraisal form. Timely balancing of Branch Ledger/books: In this job employee has to balance the branch ledger on the daily basis. Haj application target: This job is related with Islamic Banking section of HBL. current and CPDC (Crore Pati Deposit Certificate) purchased by customers. . In appraisal it is defined how many complaints of customers are reduced by employee. Willingness and ability to work with other people/unit: In this section it is noted that how much the employee is willing and how much he/she has the ability and quality to perform well in the group of people or unit and it is determined is he/she is able to perform in the group or not if a group task or assignment is given. Does he/she have ability to adopt new challenges in his/her job? Deposit Mobilization/saving/current CPDC etc: In this factor it is assessed that how much the employee is responsible for depositing certificates of saving. Number of fresh account arranged: In this job the employee is to arrange new accounts by feed the data in the database system and issuing cheques books.

Typing/Data entry speed: This is about computerized record keeping. Zero Theft: In assessment the employee is assessed according to handling of his/her honesty in his/her job. Filing and record keeping: In this job the employee is to file and record the data of customer for database. Quality of work: In this assessment the employee is given with grade points according to quality of his/her performance in his/her specific job. In this factor it is assessed that how much the employee has speed in typing data. The obedience of the employee to his/her head in the bank task is counted in this assessment.Accuracy in counting/cash handling & Counting speed: This determines that how much employee is able to count or handle the cash efficiently and how fast cash is counted by the employee. Dispatch of requisite statements: In the bank the employee of related job is to dispatch the balanced Ledger/Books. B-Individual Attributes: This area of factor is about the employee’s attribute or properties in performing job. financial statements and number of accounts before authority of branch on monthly basis. It is counted that how much he/she has been committed with theft in performing job. Speed of work: In the assessment of job this factor shows that how much fast and efficient an employee is in performing his/her task related to his/her field. The employee is graded with points according to punctuality in delivery in the appraisal form. While appraising employee it is defined that how much he/she is efficient and punctual in his/her job. . Maintenance of Guns in Order: In this assessment it is determined that how much the employee is active in performing the order of his/her head. According to effectiveness of record keep employee gets points in appraisal form. Followings are factors of individual attributes. one branch to other branches of HBL and dispatch of cheques to State Bank. Delivery of Letter/Dak in time: This job is about the deliverer of letter/Dak to the one bank to other banks. Typing/Data entry accuracy: In record keeping it is noted that how much accurate the employee is in typing data for database.

Willing to work after office hours: In this factor it is noted that how much employee is dedicated towards his/her job even after office hours. Sorting Notes: In this factor the ability of sorting and handling of currency notes are judged. Oral Communication Ability: In this factor it is assessed that how much employee has ability to communicate orally with the customers and head. Reaction to responsibility: In this attribute it is assessed that how the employee reacts when some responsibility is given to him. It is a negative appraisal. Performing under pressure: In this factor the performance of employee is assessed under pressure situation. It is checked that how much he/she is capable and confident to perform under pressure circumstances. it is noted whether he/she reacts warmly and professionally or considers new responsibility as a burden. Speaking skills are counted in this appraisal. It is assessed that whether employee is sorting notes according to sequence. Cash excess/shortage situation: Cash handling is noted in this factor.Professional/technical knowledge & competency: In this attribute it is checked that how much the employee has professional skills about his/her job and how much he/she is competent has technical knowledge about his/her job in the bank. Ability to work without supervision: In this factor it is checked that how much the employee is able to perform his/her duty efficiently without supervision and it is also assessed that whether supervisor has to keep eye on his/her to get the work one. Some time employee gives or receives more or less amount by customers. C-Technology: . Initiative factor is very important in job field cause initiate new task in the field is good attribute of professional employee. if he/she gives more than real amount then he/she has to compensate this money from his/her own pocket. Written Communication ability: In this attribute the ability and writing skills of employee is assessed. enlarge knowledge): In this factor it is noted that how much employee is eager to learn new thing about job and how much he/she is interested in enlarging knowledge of job. Sense of responsibility: in this attribute it is assessed that how the employee takes the responsibility whether takes it professionally and serious or carelessly. Initiative (eagerness to learn.

D-Customer Service: This is the area of appraisal in which the motivational and dedicated level of employee toward customer service is assessed. The dress code and manner of dressing is assessed. Business sense: This factor determines the sense of employee regarding business that whether he/she knows about economic terms and their uses. Followings are factors of this area. Integrity and Loyalty: In this factor the loyalty and integrity of employee is assessed.Personal: This is the area in which personality of employee is evaluated. The dedication and commitment of employee while performing duty is counted. whether he/she is deals with customers politely or harshly. Factors of this area are as following.This is the area of appraisal in which the capability of using of technology of employee is assessed. Grooming: In this factor the development and grooming of employee’s personality is counted. Manner of speech should be polite and understandable. Health & Energy: In this factor of personal area physical and mental health of employee is evaluated and also the use energy of performing in job. Manner or Speech: In this factor of personality the manner of speech or manner of talking to others are assessed. Appearance: In this factor the appearance of employee is counted. Knowledge of e-mail & internet: The knowledge of internet and sending/receiving is assessed in this factor of technology area. Courtesy to customers: in this factor of customer service area it is assessed that how much employee is courteous towards customers. Honesty and faithfulness with job and company is also assessed. . Creative response to customer’s needs: In this factor it is judged that how creatively and professionally the employee responses to customer’s needs regarding banking system. Rapport with customer: In this factor it is assessed that whether employee cashes the cheques of customer within time or he/she makes customers wait due to his/her personal gossips etc. Followings are major factors of area of technology Knowledge of computer: The knowledge of using of computer is counted in this factor. E.

.Attitude: In this factor the employee gets point on the basis of positive and professional attitude in his/her personal life. Attendance record/Leave Record/Punctuality: The employee is given grade points on the basis of regular and timely attendance according to time table. Intelligence: In this factor of personality the intelligence of employee is evaluated.



commissions. ethical and challenging that that encourages creativity and commitment among employees. bonuses. Employees are paid in two forms • • and bonuses. Annual benchmarking exercises are conducted to stay abreast with industry standards. HBL’s compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness. Compensation: The salaries. HBL believes in two skills for employee relation  Interpersonal communication . Employee relation: Employee Relations involves the body of work concerned with maintaining employeremployee relationships that contribute to satisfactory productivity. The environment at HBL is cultural. Indirect financial payments: This mode of payment is not related to cash payments like medical. developing and retaining the best in the business by offering market driven compensation and benefits packages. motivation. salaries. insurance. Time does not matter only performance matters at HBL. According to performance each employ gets benefits and compensation. 5. car. and morale. car fuel etc.4. Thus. Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect work situations. Direct payments Indirect payments Direct financial payments: Pay in the form of wages. residence. Essentially. Compensation at HBL: HBL’s focus is on attracting. and incentives on the basis of job and performances are compensations. rewards. incentives. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. HBL enables its employees to achieve their professional goals while keeping in synch with the bank’s overall objectives.

HBL should increase their tele-banking service centre. • • The process of promotion at HBL is slow so they should maximize the promotion process which would be source of motivation for their employees. and creates greater satisfaction with the workgroup. Working with diverse groups of people requires a tremendous amount of interaction. Conflict management Interpersonal communication skill: At HBL the first skill for managers to understand and practice is interpersonal communications. Learning to leverage this skill helps in resolving employee relations issues quickly and effectively. Conflict management: In HBL the second skill for managers to leverage. Most of times customers find the service operator busy. At many occasions HBL’s ATM network gets slow and their AT machines don’t allow for transaction they should renew their ATM links in order to make their customers avoiding inconvenience. Through this service we can get information about our personal account on telephone. • 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. 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. It is actually conflict resolving approach. is conflict management. they can help create the right workplace climate. attitudes. They should provide more and more opportunities to fresh graduates and masters. Keeping in view these all points interpersonal HBL emphasizes on strong interpersonal communication skill for effective accomplishment of goals. It should eliminate the cost of online banking since they charge cost of online transaction or transfer. beliefs and behaviors. Our Suggestions for betterment of HBL: • • HBL is Pakistan’s largest bank. . Manager cares employees emotions and feelings. In this skill manager let his/her subordinates to speak and say whatever they feel during working with manager. HBL is initiator of Tele-banking service which is unique service in Pakistan. If these interactions are positive.