You are on page 1of 29

IQRA UNIVERSITY

HRM Final Project


Company:
Prepare
Group Members
NamesReg#M. Safwan Bin
Tahir6242M. Faizan Umer
Malik10839Course:
Human
Resource Management
Section: Friday (6 to 9pm)
Final Report

d for Dr. Kashif

“In the name of ALLAH, The Most Merciful, the Most Kind”

Acknowledgement

We are so much grateful to our Prestigious Dr. Kashif who gave us this opportunity to make this
Human Resource Development Report of United Bank Limited which enhances our ability in
understanding HR functions in corporate world and making report on them.

We would also like to pay our thanks to UBL HR Recruitment Manager Miss.
Ambreen Zia Malik & UBL HR Relationship Manager Miss. Sana Fatima who provide us

2
Where you come first
all the information of Human Resource function of United Bank Limited and all other staff who
help us in providing in-depth information on the environment and culture of United Bank
Limited.

We also like to thanks to our friends Eman Wasti & Zoya Altaf for helping us in making
this report by arranging the meeting of interviewing HR manager.

CONTENTS

Page NO.

1. Executive Summary 5

2. History of United Bank Limited 6

3. UBL Introduction 7

A Mission Statement 7

B Vision 7

C Introduction 8

3
Where you come first
4. SWOT Analysis of UBL 10

5. UBL HR Functions 12

6. UBL HR Objectives 12

7. UBL HR Planning’s and Policies 12

A Attracting Methodology 12

B Organization Chart 13

C Investment in Development & Performance 13

D UBL Structure 14

E Organizational Values 14

F UBL Culture 14

G UBL Working Environment 15

H HR Measuring Method 15

8. Job Analysis 15

A Techniques for Job Analysis 16

9. Job Evaluation 16

10. Recruitment 16

A Internal Recruitment Sources 16

B External Recruitment Sources 17

11. Selection 17

A The Application Form 17

B Written Tests 18

C Performance Exams 18

4
Where you come first
D 18
Selection Interview
19
12. Training & Development
19
13. Performance Appraisal
20
14. Compensations and Benefits
20
15. Stress Handling
20
16. Critical Evaluation of HR Functions
22
17. Group Conclusion & Recommendation
23
18. Bibliography/ References
25
19. Credits
26
20. Semi-Structured Questioner

Executive Summary

United Bank Limited is one of the banks playing a very important role in the
economic development of Pakistan. It’s providing high quality services, manage
customer experience efficiently, have comparative advantage due to its innovative
technology and provide high profit to its stakeholder.

In order to maintain and improve its services in the competitive market


UBL Human Resource Department plays a very important role. You will find in
this report the complete HR function of UBL. The Vision, Mission and Strategic
goal of UBL what are the methods followed by UBL for analyzing and evaluating

5
Where you come first
its Jobs. How UBL recruit and select new employees. The methods used by UBL
training and developing new skills in their employees. The methods used for
performance appraisal of its job incumbents. Compensations and benefits
provided by UBL to its employees and some other HR Functions.

Group suggestions/recommendations for making UBL human resource


management functions more effective

Purpose of This Project


The main purpose of this project is to highlight and to study the Human Resource Department of
United Bank Limited. It provides a brief overview of the organization and all the ways,
strategies and alternatives mainly used by Human Resource Department of UBL.

History of UBL
United Bank Limited was established in November 1959. The bank was sponsored by the
saigol Group of Companies, which were the mainstay of the textile industry in Pakistan at
that time. Within a short period of time, the bank emerged as the third largest in the

6
Where you come first
country after HBL and NBP. The bank was nationalized in 1974. Later on another bank the
commerce bank limited was merged into UBL.

UBL was the third bank to be offered for privatization. Initially, a Saudi based
financial institution; Bashrahil Group came up with the highest bid for the bank, and
deposited the first tranche for its consideration. However, due to flaws in the transaction,
the SBP cancelled the privatization and took over the bank in 1995.

The Bank’s total income including interest and non-interest income amounted to
RS.4935 million in 1995, its deposits were RS. 109 billion and investments were RS.25
billion in 1995. UBL incurred a loss of RS.724 million in 1995.

In 1996 the management of the bank was changed and by mid 1997 the financial
and administrative discipline was restored. The interference of the government was
eliminated and the non-performing loans recovery was increased and the liquidity position
was brought up to the required level. About RS.6.3 billion were recovered out of which
about RS.5 billion were domestic and of this about Rs. 4.5 billion was recovered in cash.

A right sizing program was initiated as well as an aggressive branch rationalization


strategy by which 203 loss making branches were shut down and profitable ones were
opened in other areas. Surplus staff was removed which amounted to 5416 employees. The
entire audit system was revamped.

United Bank Limited Introduction

A. Mission Statement of UBL:

“To develop and deliver the most innovative


product, manage customer experience, deliver quality
service that contributes to brand strength, establish a

7
Where you come first
comparative advantage and enhance profitability, providing
value to the stakeholders of bank”

B. UBL Vision:

“To be the premier organizations operating locally &


internationally that provides the complete range of financial
services to all segments under one roof”

C. UBL Introduction:

United Bank Limited was established on November 7, 1959 and incorporated as a Public
Limited Company under Companies Act 1913. The UBL Board of Directors of are:

Highness Shaikh Nahayan Mabarak Al Nahayan Chairman

8
Where you come first
Sir Mohammed Anwar Pervez OBE Deputy Chairman
Mr. Atif R. Bokhari President & CEO
Mr. Omar Ziad Jaafar Al Askari Director
Mr. Zameer Mohammed Choudrey Director
Mr. Ahmad Waqar Director
Dr. Ashfaque Hasan Khan Director
Mr. Aqeel Ahmed Nasir Company Secretary & Chief Legal

Mr. Abdul Pauf Malik Director


Mr. Ameer Karachi wall Chief Financial Officer

The Bank is currently operating 1056 Branches Domestically and 15 Branches


Overseas (USA, Qatar, UAE, Bahrain and Republic of Yemen). UBL hold 51% of its
total shares other 49% shares are owned by Government. After the privatization of
banking sector in Pakistan UBL implemented its strategies to achieve the comparative
advantage in the Market place. UBL subsidiaries are:

• United Bank AG Zurich, Switzerland

• United National Bank Limited, UK

• UBL Fund Managers Limited

UBL due to its innovative corporate culture wins their customer trust. UBL is
running four websites to provide information and customer services which are:

• www.ubl.com.pk,

• www.ublonline.com

• www.ublfunds.com

• www.ublinsurers.com

The depositing services offered by UBL are Business Partner, Rupee Trans A/C,
Basic Banking Account, UBL UniFlex, UBL UniSaver, UBL Profit COD, Term Deposits

9
Where you come first
Receipts, FCY Savings, and FCY Term Deposits. The loan and card services are UBL
Address, UBL Businessline, UBL Cashline, UBL Drive, UBL Credit Card, UBL Money,
and some other services are UBL netbanking, UBL e-statement, Hamrah, UBL Wallet,
UBL Click n Bank, UBL Click n Remit, UBL TezRaftaar, UBL Omini & UBL Business
Plus.

SWOT Analysis

i. Strengths:
10
Where you come first
• 3rd largest Bank of Pakistan in term of deposits

• 2nd largest Privatized Bank of Pakistan

• UBL offering Customized Products and services aggressively better then


its competitors

• Improved operational efficiency as to its past

• Courteous Customer service and fast delivery of online and offline


services

• Marvelous Image and Reputation of the bank in the eyes of its customers

• Extensive Branch network

• UBL Product positioning is very effective

• UBL target the segment like salaried person, business people and self
employed person

• UBL product positioning affect the life style of the people as they help in
improving standard of living

• 1056 Branches all over Pakistan

• Stands in the list of Profitable bank in stock exchange

• Largest number of corporate deals by any bank is Pakistan

• Overseas Branches

• Attractive Salaries and incentives for employees

• Personnel of UBL are very well trained. Majority of employees have


many years of experience in banking sector and are an asset for the bank.

11
Where you come first
ii. Weaknesses:

• No standardization in terms of branches some of the branches are very


attractive and most of the branches are not very good like other branches.

• In some regions, urban areas of Pakistan service of UBL is not good as


compared to other privatized banks

• The application time is also quite lengthy.

• UBL is a step behind in using new technology as compared to other banks

• All branches need orientation for customer dealing.

• Most of the employees are overload with the work and promotion is also
not timely.

• Most of employees are experienced and they are not able to deal
customers well, adopt new culture and above all they are unable to use of
new technology like computers.

• No separate training center to train their employees

• Employees are not well dressed

• Workforce is not diverse

• Security system in most of the branches is not up to the mark.

iii. Opportunities:

• Bank can extend its network in other cities of Pakistan like other remote
cities, it would increase their sales.

12
Where you come first
• Proper orientation of employees in all branches can help them to cope up
with foreign banks

• By bringing new technology and modern business processes will bring the
change and increase their profitability

• Call centre services should be improved to enhance their network

iv. Threats:

• Large and increasing competition.

• High operating costs

• Lack of huge deposits

HR Functions

Following are the major Human Resource Management Functions of United Bank Limited

6. HR Objectives:

The objectives are to look out for the well being of all employees of the UBL. Provide
leadership and direction to employees of the company. Career Development planning for all
employees of the company. Ensure thorough training of nationwide employees. To provide

13
Where you come first
individual employees with orientation on the company at the time of joining. To provide
employees with solutions to their problems. Maintaining data records of all employees of
UBL (Human Resources information System). To evaluate and retain those employees who
are assets to the company.

7. UBL HR Planning’s and Policies:

United Bank Limited follows Business-level/Competitive Strategy (competitive strategy


identifies how to build and strength the business’s long-term competitive position in the
market place) because of vast number of its competitor in the market place. UBL analyze it’s
strengths with weakness and opportunities with threats to maintain its comparative
advantage. The competitive advantage of UBL is based on Differentiation. It provides
different online and offline services to win its customer and periodically analyze the
competitive marketplace to enhance its services at a high level.

Attracting Methodology:

Human Resource policy of UBL is that they attract the current employees by offering them
Promotion, Cash award, increment, bonuses and stock option so keep up and generate
external candidate by offering good salary packages, Career oriented jobs, Accommodations
etc.

Organization Chart:

14
Where you come first
The organization design of UBL is Horizontal (which has low hierarchical level). There are
different Groups containing 10 to 12 people which are assigned different tasks to work on
each group has its own supervisor who supervise all employees in its group.

Investment in Development & Performance:

15
Where you come first
UBL invest in HR Development and performance by promoting or giving rewards to those
employees whose performance is better. The performance appraisal of each employee is
conducted annually in UBL.

UBL Structure:

Organizational Values:

•Trust and Integrity

16
Where you come first
•Respect for people

•Responsible corporate citizens

•Passion for business excellence

•Commitment to total customer’s satisfaction

UBL Culture:

United Bank Limited culture is the personality of the organization. Culture is


comprised of the assumptions, values, norms and tangible signs (artifacts) of organization
members and their behaviors. The organizational culture of UBL is that it always provides
profit to its stakeholder and never misrepresents its financial reports and will never do any
unethical act which harms its client and competitor. The employees of UBL will always be
helping and friendly with its customers. The norms of UBL are it always follows the Laws of
country and maintain its goodwill.

UBL Working Environment:

The working/organization environment of UBL is very sophisticated. Environment is


very friendly due to group coordination. Employees can easily communicate horizontally and
vertically which help to achieve its goals and objectives. Employees have to follow formal
code of ethics of United Bank Limited

HR Measuring Method:

17
Where you come first
United Bank Limited uses Scorecard Approach to measure the effectiveness and
efficiency of HR department. UBL follow the seven steps to measure its HR department.
First UBL define its business strategy (discussed above). Second its outline the company’s
value chain activates (activities which create value for customers and related supporting
activities). Then it outlines what organizational outcomes (goals and targets) the bank has to
achieve. Then it evaluates the workforce required to achieve the goals. After that UBL devise
its HR policies and practices (what new training is required?). Then it designs the HR
scorecard and periodically evaluates the measurement system.

8. Job Analysis:

Job Analysis is the procedure through which you determine the duties of the position
and the characteristics of the people to hire for them. Job analysis produces information used
for writing job descriptions and job Specifications.

Techniques for Job Analysis:

UBL only use Qualitative Techniques of analyzing jobs. The techniques UBL uses
are Interview and Open-ended Questionnaires. They use interviews in which employees
are ask what the job entails and questionnaires in which employees are asked different
question about what are the activates they perform in job.

9. Job Evaluation:

18
Where you come first
Job Evaluation is a systematic comparison done in order to determine the worth of
one job relative to another

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

10.Recruitment:
In order to determine the future staff needs United Bank Limited uses Ratio Analysis
technique (a Forecasting technique for determining future staff needs by using ratios between,
for example sales volume and number of employees needed) in which trend between two trends
is determined like volume of deposits, revenue, new branches etc and number of employees
needed to perform tasks.

Internal Recruitment Sources:

In forecasting the supply of inside candidates UBL use Qualifications inventories


(manual or computerized records listing employees education career and development interests,
languages, special skills and so on to be used in selecting inside candidates for promotion) so in
order to replace a supervisor of a department a person below educated then the current supervisor
will be selected as a new supervisor.

External Recruitment Sources:

External source for hiring employees use by UBL is Succession Planning (the ongoing
process of systematically identifying, assessing and developing organizational leadership to
enhance performance) in which UBL do analysis on the important or key jobs in the
organization, create a list of competent employees who can fulfill the requirement of that job and
then select the best employee who can perform that job efficiently and affectedly. The internal

19
Where you come first
sources used by the United Bank Limited for hiring candidate are Advertisement, Head hunter
and Word of Mouth. In advertisement they use different mediums like Television, Newspaper,
subscribing the jobs on Job sites e.g.

• www.rozee.pk,

• www.monster.com

UBL has hired its own Retained Executive Recruiters/Head hunter (Executive recruiters
are special employment agencies retained by employers to seek out top-management talent for
their clients) to find competent and qualified people for UBL, Soon they will be taking this
responsibilty of targeting Head Hunters.

But due to some circumstances there is flexibility in hiring the employees externally and
internally for example non availability of required candidates, lack of time, lack of resources etc.

Usually United Bank Limited don’t take Referrals but due to some reason they do
sometime take referrals for example referral form a high command person, person on referral is
qualified and competent etc.

11.Selection:

Selection process of UBL based on Qualification, Previous job experience, Age and
health of candidate.

The Application Form:

For selection process the first step which candidate to be fulfilled is application form, this show
about the candidate’s education, previous performance, prior work history, experience, hobbies
and health condition? As such, it is extremely critical for his/her continued participation in the
examination process. Before that candidate has to review thoroughly what the Job advertisement
specifies the requirements to qualify for the position. Candidate must meet all the criteria to be

20
Where you come first
considered for the position; ensure that, otherwise candidate will be wasting his effort in
completing the application.

Written Tests:

Written exams are usually obtained from one of several test construction firms available to them.
These tests are designed to determine level of technical and/or analytical abilities associated with
the particular position for which candidate had applied. Unstructured questionnaire and IQ test
(intelligence test) Test results are sent by mail, usually within 6 working days. If receive a
passing score candidate will be invited to continue in the examination process

Performance Exams:

Test ability to accomplish specific job-related tasks by providing the opportunity to actually
perform them. These tests are scheduled through the Human Resources Department office,
with notification in writing of the date, time, location and duration of the test. Instructions
will be given on the tasks to be completed and then asked to complete them. Individuals
with considerable relevant experience will conduct the evaluations. Safety, quality of work,
adaptability, performance under stress, etc. are evaluated. Specialized Testing

Selection Interview

Once the List of candidate who is capable enough, is established it is sent to the Department(s)
that is hiring to fill a current vacancy. The Department Head is responsible for setting up
Selection Interviews. He/she may interview anyone on the list; The Department Head will be
looking for the candidate with the best qualifications for their particular position.

The candidate who is selected, investigate his/her background and a probationary period before
attaining permanent employment status. Additionally, in accordance with Federal Law, the
candidate is required to provide proof of identity and proof they may legally work.

21
Where you come first
12. Training & Development:

Training refers to the methods used to give new or present employees the skills they
need to perform their jobs. Development include employee, management, organizational and
career development which develop employees skills, management which enhance executive’s
abilities, organizational cultural development and career development of employees.

Training methods used by United Bank Limited are Soft Skill Functional Training,
On-The Job Training and Class Room lectures.

In soft skill functional training UBL give training to improve personality traits, social
grace, friendliness, personal habits and fluency of language. In On-the job training UBL uses
different method like Coaching or understudy method in which supervisor act as a coach and
teach the trainee to the perform the task on the job and Job rotation method is used by UBL
for those employee who need multi skills to perform the job.

13.Performance Appraisal:

In performance appraisal of employees UBL use Graphic Rating Scale Method (a


scale that lists a number of traits and a range of performance for each. Employee is then rated
by identifying the score that best describes his or her level of performance for each trait) in
which UBL measure the characteristics and previous performance of employees and then
rank them subsequently.

22
Where you come first
In the performance process UBL first discuss the job and duties assigned to the each
subordinate in the Groups. After that they compare their actual performance with the
standards which are set by the UBL. Then the performance reports of subordinates are
discussed with them and make plans if any development is required or not.

14.Compensations and Benefits:

United Bank Limited provide compensations to its employees in shape of Cost of any
medical Treatment, Cancelled Holidays fees, Repair of vehicle, any injury while doing
job tasks and some other. Employees can claim their compensation if any above case
occurs.

Benefits which are provided by UBL are Paid time off, Retirement, Disability
Insurance, Education and training programs. In Paid time off benefits the employee is
paid for the time he don’t worked duo to vacation, holiday pay and sick pay. Retirement
benefits are in shape of pension, gratuity, provident fund and superannuation fund. In
disability insurance bank provides financial support when an employee becomes injured or ill
and is unable to do his/her job and in education & training programs bank provide different
education & training to their employees to furbish their skill.

15. Stress Handling:

The techniques used by United Bank Limited to handle stress among its employees
are by providing better atmosphere in the office which is neat & clean, Air-conditioned,
peaceful and relaxed so employees can work with their full potential.

Lunch break are also provided to employee to reduce stress among them. This also
creates a relaxed atmosphere because employees can chit chat in that break.

United Bank Limited sometime also arrange excursion tour for their employees to
lessen their workload and fresh their mind for the challenging task ahead them and sometime
send employees on vacation with their families.

23
Where you come first
16.Critical Evaluation of HR Functions:

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

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

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

24
Where you come first
UBL only take Intelligence test (IQ) to analyze new employees for selection due to
which people who are not intelligent but have other skills are not hired.

For Training and development UBL use different method which are Soft Skill
Functional Training, on-the job Training and class room lectures. These methods are the
main reason for UBL success and Good services.

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

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

This is all the information that we get from UBL HR manager. The visiting card of
HR manager is also attached.

17. Suggestions/Recommendations:

As we group members analyze the HR function of United Bank Limited are not one
of the best HR function of corporate world. Many of its competitors have better HR function
as compare to UBL Bank. We suggest and recommend that first of all

25
Where you come first
• There should be a development of Assessment Center so that employees should
be train at high level.

• Referral should be ignored

• We suggest that UBL should used Diversification corporate strategy in which new
and innovating services should lines

• UBL should use Participant Diary/Logs and Position analysis Questionnaire


method with their current methods so for writing Job description

• UBL should use a combination of Ratio Analysis and Trend Analysis (study of a
firm’s past employment needs over a period of years to predict future needs) for
recruitment.

• We recommend UBL should use College Recruiting from honored universities


like IU.

• Panel Interview should be conducted then individual interview

• We suggest that UBL should use Paired Comparison Method for performance
appraisal

18.Bibliography

Miss. Ambreen Zia Malik

HR Manager Recruitment

Head Office: 9th Floor, State Life Building No. 1,

I. I Chundrigar Road,

Karachi, Pakistan.

Ph: 021-990332514

26
Where you come first
Email: ambreen.zia@ubl.com.pk

Miss. Sana Fatima Kizibash

HR Relationship Manager

Head Office: 9th Floor, State Life Building No. 1,

I. I Chundrigar Road,

Karachi, Pakistan.

Ph: 021-990332514

Email: sana.kizibash@ubl.com.pk

References: (Web links)

i. https://www.ubl.com.pk/

ii. http://www.wikipedia.org/

iii. www.ublonline.com

27
Where you come first
Credits

M. Safwan Bin Tahir

Designing & composing of this report and researching on HR practices.

M. Faizan Umer Malik

Data Collector & Interviewer of HR Manager.

Eman Wasti

28
Where you come first
Helper & Data Collector

Zoya Altaf

Helper & Data Collector

---------------------------------

29
Where you come first