Institute of Business Management

Human Resource Management | M-12897 | Ms. Lubna Tahir

Sheikh
Prepared by: Aisha Khan (20201-27761), Bushra Shahid (20201-27909), Tahreem
Aqeel (20201-27330), Alishba Khan, Awaiz Baloch (20201-27996), Sikander Khan
 ACKNOWLEDGEMENT
With the completion of our project term report. We would like to extend our
sincere gratitude and a word of thanks to the Ma’am Lubna Tahir Sheikh
whose constant provision of direction and guidance along with timely advice
aided us to a great extent to accomplish this task successfully. Lastly, our
hearty appreciation also goes to our colleagues who facilitated us in carrying
out our term report.

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 TABLE OF CONTENTS

Executive Summary----------------------------------3-4
Introduction------------------------------------------- 4
Recruitment--------------------------------------------5-6
Selection------------------------------------------------6-7
Recruitment & selection------------------------------8
Training & Development-----------------------------9
HBL’s training methods------------------------------10-11
Motivation----------------------------------------------12
Performance Management & Retention------------13-14
Performance Evaluation Methods at HBL---------14
Recommendations-------------------------------------15

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 EXECTIVE SUMMARY
We are studying Habib Bank Limited to understand their recruitment and
selection process, training and development, motivation, performance
management and retention. All these above mentioned topics come under
Human Resource Management activities. With the help of Senior Manager of
HR Department Mehwish Hassan, we have collected information for our
report.
Pakistan’s largest and first full-service bank HBL started its banking activities
in Asia in 1947. Since it has become HBL’s motive to grow and develop on
the progressive path, therefore HBL has made up a huge branches network
from over 700 branches and +2100 ATM’s globally having fourteen million
customers and shoppers. HBL has a record size worth of USD 24 Billions. It
consists of different departments namely: Credit department, Cash
department, Human Resource Department.
HBL’s Human resource management is considered as the most valuable asset.
Training in an organisation plays a vital role to groom employee abilities. So
keeping this factor in view, HBL is widely known for its consistent and
productive work environment and supportive to its staff members. HRM
processes of HBL are well established dedicated to its recruiting of trained,
professional and well-educated personnel, obtained by the unique selection
processes such as interviews and written tests to ensure that the recruitment
of the most eligible applicants has taken place. Some of the HR functions that
the HR department of HBL has:
1. Recruitment: The recruiting procedure involves attracting people who
meet specific employment qualifications.
2. Selection and orientation: After the recruitment the selection process
comes, in this after analysing, the candidates are shortlisted and provided with
the job appointment letter.
3. Training: To improve the abilities and the skills of employees, HBL
facilitates full- service teachings and the assistance in Karachi, Lahore, and
Islamabad. HBL training is way different than other banks for they have only

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30% external recruitment and selection process and 70% of the recruitment is
hired internally.
4. Performance management and evaluation: Evaluation of the employees
in HBL is mostly taken place by the top management. The main reason for
this evaluation is to see whether the employees are achieving their goals or
not. The steps taken to make them more successful in their works. All this
evaluation process is taken place after a specific period.
5. Motivation: Employees in HBL are motivated with bonuses,
compensations, and all other facilities one needs for living a good peaceful
life. Moreover, HBL provides other opportunities to its employees to motivate
them so they could work with the peaceful mind.

INTRODUCTION

Pakistan’s largest asset bank Habib Bank is a global Pakistani bank

headquartered as Habib Bank Plaza in Karachi, Pakistan. Most of its activities
are entertained by the Economic Development Fund of Agha Khan.
The purpose of our report is to educate people about the recruiting and
selection process, training and development of employee, performance
management and retention, motivation, steps taken by HBL in employee’s
engagement.
Employees engagement is the process of assessing the employees that how
much dedicated they are to their employment. And it is very important to
know that HBL training program is exactly same as that of other banks. It has
only 30% external recruitment and selection process rest of the 70% are
owned with internal recruitment.

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 RECRUITMENT
HBL recruiting method includes not only enticing individuals that meet
certain employment qualifications, but also opening the arm for early birds
and fresh apples. HBL conducts recruiting both internally and externally.

EXTERNAL SOURCES
I. Candidates from external sources:
• Walk-ins.
• Employee Referrals.
• College Recruitment.

II. Recruitment on Campus:

Every year, as part of its human resource strategy, HBL visits several
universities around the nation to induct and groom fresh and new business
graduates.
Young people who are enthusiastic and skilled form the backbone of HBL's
banking operations and are groomed to become future leaders. HBL recruits
new employees on a permanent basis and offers a diverse range of career
options in areas such as Marketing, Information Technology (IT), Operations,
Human resources, and Finance.

INTERNAL SOURCES
If a position is established, HBL will also look for a candidate internally. Even
if HBL hires internal personnel, the necessary selection procedure is
performed. HBL conducts internal searches on their own in the following
ways:

1. Job Posting:
HBL posts a job advertisement/opportunity for a vacant position on their own
internet website. They also notify their employees about the vacancy available
in the department by sending emails to the personal account set up with the
company.

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 2. Recruiting former employees:
The HBL uses an internal hiring source. Rehiring previous workers refers to
the procedure through which HBL rehires former employees in new positions.

3. Final Selection within the Organization:

Following the completion of all processes, the best applicants as determined
by HBL's selection boards are chosen.

4. Employee Referrals:
Recommendations from existing workers are one of the top sources for
finding the best individuals/applicants who will do well on the job. Employees
seldom suggest someone unless they feel he or she can do sufficiently or
efficiently. As a result, HBL prefers applicants who come via employee
referrals.

SELECTION
Selection Process:
The selection procedure consists of eight steps: initial screening interview,
application form completion, employment test, detailed interview,
background investigation, realistic job preview, conditional job offers,
medical/physical tests, and permanent job offers. However, the HBL's
personnel selection method consists of a written test followed by a panel
interview. The figure below will provide you an insight of the HBL choosing
procedure.

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 RECRUITMENT AND SELECTION
1. Pre-screening and short listing:
As, web-based applications are accepted so, all these CVs are initially get
filtered out according to the criteria mentioned in advertisement for the job.
After pre-screening all the selected candidates are called for written test on
one day.

2. Test and Interview:

Short-listed applicants take a computer-based written test, and those who
receive the minimum passing marks according to the position criteria are
invited to an interview. HBL interviews are panel-based. There are HR
specialists on the panel, as well as members from the department where the
vacancy is established and the controlling officers (i.e., a panel of at least three
individuals). In an interview, the following types of questions may be asked
in interview.
• Job related.
• Situational.
• Puzzled Questions.
• Stressed.

3. Final selection:
Candidates are evaluated based on their responses to interview questions. The
top applicants, as determined by HBL's selection board, are chosen and sent
an employment letter. HBL collects the needed documentation and requires
them to sign a time bond, which states that they will not be able to leave the
company for a specified length of time, and then sends them on training.

4. Orientation:
Orientation is done for chosen employees shortly after final selection and
before the commencement of the training process. During orientation, new
employees are supplied with basic background information about the HBL.
The following are the fundamental components of successful orientation:
• Employee Benefits Information.
• Personnel procedures and policies.

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 • The routine of the day.
• Organization and operations of the company.
• Regulation and safety measures.

TRAINING AND DEVELOPMENT

Employee training and development refers to the educational activities that
take place within an organization, designed to enhance the skills and
knowledge of employees while also providing instruction and information
regarding how to perform each task with accuracy and according to
requirement.
Habib Bank Limited has designed 5 steps for the process of Training and
Development:

1. Need Analysis:
HBL first identifies the skills and qualifications they are looking for in an
employee for a specific job and then develop objectives.
They have their criteria based on 3 HRM areas:
a. Where is the training needed?
b. What are the skills that an employee must develop in order to be more
productive?
c. Who needs to be trained?
All the above is done through internal audit as well as employee performance
appraisal.

2. Instructional design:
After the need analysis, a training program is designed which includes
workbooks as a guide, various activities and exercises that highlight the major
type of skills required and that need to be developed/enhanced.

3. Validation:
Before implementing on the training program, the design is approved by a
small representative audience.

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 4. Implementing the program:
The targeted group of employees is then trained according to the set program.

5. Evaluation:
In this stage of the process, they assess if the program has been successful or
not.

HBL’s Training Methods

1. On-the-job Training:
HBL usually trains its employees while they are on the job whenever new
policies or methods are introduced in the organization. The employee
trainings are taken place through online classes on the HBL employee portal,
or they are invited to attend the training programs at the main headquarter of
HBL.

❖ Understudy/Coaching: It is the on-the-job training method

through which employees are trained and coached by professionals.
They learn how to perform their tasks according to the requirement that
meets the HBL goals and objectives.

❖ Audio and Video: Another method used by HBL is training for new
or selected applicants through audios and videos.

2. Off-the-job Training:
In this case, employees are provided with specially designed case studies
having dilemma related to the banking sector. Employees have to solve them
which help them get training of how to take bold and effective decisions in
order to overcome these critical situations.
Moreover, employees are also encouraged to participate in various seminars
that are arranged by the banking sector. These seminars do not just take place
in Pakistan but all over the world. This a source of authentic knowledge that
are related to new horizons of the banking sector.

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Types of Trainings HBL provides:
1. HBL Nisa e Learning Module
2. Operational Risk Management
3. Global Remittance Products Business Training
4. HBL Code of Ethics
5. Business Conduct eLearning
6. Anti-bribery and Corruption eLearning
7. HBlKonnect
8. Business Continuity Planning General Awareness

3. Employee Development:
It is a future oriented training program that focuses on the personal growth of
employees, preparing them for higher level jobs.
In HBL following practices take place for employee development:

1. Job Rotation:
HBL moves its trainee from one department to another o broaden his/her work
experience and to identify their strong or weak points. HBL’s Manager
Associate is a program that is used for this type of job rotation training.

2. Special Assignments:
These are the type of assignments that are related to the tasks that take place
within the branch office and by completing these assignments that are
assigned by the trainer, an employee is trained.

3. Action Learning:
The Management of trainees is also allowed to work full time analyzing and
problem solving in other departments.

4. Outdoor Training:
This involves major tasks that test employee or trainee’s emotional and
physical capabilities.

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 MOTIVATION
Motivation is the mechanism that accounts for an individual's willingness to
put up high amounts of effort to achieve organizational goals, conditioned on
the effort's ability to meet some personal need.
Motivation plays a crucial element in any field's success. When a leader
motivates his or her people to execute the work or complete the assignment
assigned to them on time, the success rate increases. Employees are
sometimes required to complete tough and time-consuming jobs simply
because they are motivated by the company or concerned authorities.
HBL's leaders, executives, and managers motivate their people in the manner
described above to get the best outcomes.

Motivation Theories from the Beginning

➢ Maslow's Hierarchy of Needs:
HBL's leaders and managers are very familiar with employees' basic and
additional demands, such as physiological, safety, social, esteem, and self-
actualization.

➢ McGregor's X and Y Theories:

HBL has two types of employees: 'X' and 'Y'. Because the majority of the
bank's employees are the type of 'Y,' the bank's leaders/managers only
motivate them based on their activeness, effectiveness, and desire for
responsibilities, while the other type of employee, 'X,' is punished (lightly)
and motivated by the bank's leaders/managers.

➢ Herzberg's Hygiene Theory:

Some bank employees of type 'X' are dissatisfied with their jobs, which make
it difficult for the bank's leaders/managers to encourage them.
HBL's leaders/managers motivate their staff in the same way that they
motivate themselves by working hard and behaving well with others to create
a friendly environment throughout the firm. HBL's leaders/managers provide
sustenance support and a conducive environment for their staff to devote their
whole focus to their objectives in order to achieve the greatest outcomes.

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HBL's leaders/managers are committed to eliminating prejudice in their
workplace and believing in the equity and motivation of all their employees.

PERFORMANCE MANAGEMENT AND

RETENTION
As a result, performance management encompasses all efforts that ensure that
objectives are continuously met in an effective and efficient manner. It's a
never-ending feedback loop in which the observed outputs are monitored and
compared to the anticipated outcomes. Employees at HBL are given
opportunities to work on more difficult projects, are matched with experts,
and can direct and make decisions in a performance management approach.
At HBL, growth is a function of performance rather than time.
The following are the performance management tools utilized by HBL:
• Setting developmental goals
• Ongoing performance evaluation
• Continuous feedback
• Coaching and assistance
• Appraisal of performance
• Rewarding, recognizing, and compensating employees
In HBL, top management assesses employee performance to see if they are
meeting their objectives and what improvements they can make to make them
more successful. It is assessed after a certain amount of time has passed.
Following an evaluation of staff performance, top management makes the
choice for the firm that they are capable of conducting more advanced
transactions and engaging with other foreign banks, as well as reporting to the
state bank or the father of banks.

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PERFORMANCE EVALUATION AT HBL:
Performance evaluation is a process of evaluating and comparing an
employee's job performance to industry standards. HBL's performance
appraisal is a structured formal contact between a subordinate and a
supervisor, and it is usually done once a year for all employees. Each
employee is evaluated by their line manager, while directors are evaluated by
the CEO, who is then evaluated by the chairman. The performance appraisal
methodologies utilized by many firms around the world, according to the book
HRM by (Stephen P. Robbins).
• Object-oriented management with a graphic rating scale
• 360-degree evaluation
• Trait evaluation
• Behaviorally anchored rating scales are a type of rating scale that is
based on behavior.

PERFORMANCE EVALUATION METHODS AT HBL

At HBL, we employ two sorts of appraisal methods:

➢ Methods of Forced Distribution / Bell Curve Method:

The rate is "compelled" to assign ratings to the people being evaluated
according to a pre-determined performance distribution. A small percentage
of rates should be assigned to the extremes (best and worst performers), while
most rates should be assigned to the middle of the performance distribution.
➢ Method of a Graphic Rating Scale:
In HBL, it is used for top executive level positions such as vice president and
higher. Managers are given a set of objectives/attributes to score an individual
against.

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 RECOMMENDATIONS
As students of human resource management, we believe that HBL is a very
good organization with some drawbacks that harm its reputation.

1. They should focus more on employee engagement to develop the

hidden skills of youngsters as a high priority inside the firm for human
capital development.

2. They should give more employee benefits, because the younger

generation is addicted to working in a stress-free atmosphere.

3. They should create a yearly strategy for employee engagement

activities and create a positive work environment that boosts staff
productivity.

4. The company should pay both direct and indirect compensation to its
employees.

5. The management should have a job-evaluated compensation structure

that is more competitive than other banks in the country.

6. To appropriately evaluate an employee's performance, management

should adhere to the promotion policy.

7. Top management should endeavor to modify services to gain a

competitive edge and provide quality service.

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