Hailey College of Commerce

University of The Punjab, Lahore

Assignment
Human Resource Management

Submitted To
Prof. Waqas Farooq

Submitted By
Muhammad Muaz (BC 20-689)
Muhammad Zohaib Butt (BC 20-652)
Muhammad Ahmad (BC 20-654)

Title:
Filed analysis of HR department
Jahan khawab wahan HBL
 DEDICATIONS
We dedicate this project report to our parents who really contributed in our efforts as they
fully supported us morally, financially and gave us such strengths, courage to deal with the
upcoming challenges of life.

To those teachers who really struggle with their students to provide them with true
knowledge, and expertise as they put face to the current challenges of upcoming international
business world.

At last, this project is dedicated to our best team efforts and cooperation that lead us to
complete it with zeal and zest.
 ACKNOWLEDGEMENT
All praises and appreciation are for Allah Almighty, the most merciful, the gracious and the
creator of entire cosmos/universe, whose bounteous blessings enable us to perform and
accomplish this assigned task.

We give over our supreme thanks to Mr. Sahibzada Yaseen Ahmed, and feel highly
privileged to describe the most an ever burning flame of gratitude and deep sense of devotion
to him, for assigning this task to get practical exposure of the field and industry. We are
grateful to his ever inspiring guidance, keen interest and enthusiastic behavior throughout the
project.
 Table of Contents
EXECUTIVE SUMMARY......................................................................................................1
CHAPTER-1.............................................................................................................................2
1.1 Introduction.......................................................................................................................................2
1.2 History..............................................................................................................................................2
1.3 Mission And Vision Statment...........................................................................................................3
1.4 Objectives/Goals Of Hbl:..................................................................................................................3
1.5 Organizational Culture Of Hbl:........................................................................................................4
1.6 Key Personnels Of Hbl.....................................................................................................................4
1.6.1 Board Of Directors...........................................................................................................4
1.6.2 Management Team:..........................................................................................................5
1.7 Organizational Structure....................................................................................................................6
CHAPTER-2.............................................................................................................................7
2.1 Methodology.....................................................................................................................................7
2.2 Sources..............................................................................................................................................7
2.2.1 Primary Data.....................................................................................................................7
2.2.2 Secondary Data:................................................................................................................8
CHAPTER:3.............................................................................................................................9
3.1 Human Resource Department Of HBL.............................................................................................9
3.2 The Hr Department Of Hbl Bank Practice The Following Hr Functions.........................................9
3.2.2 Job Analysis......................................................................................................................9
3.3 RECRUTMENT..............................................................................................................11
3.3.1 Recruiting Goal.............................................................................................................................11
3.3.2 Recruiting Sources.......................................................................................................................11
3.3.2.1 External Source............................................................................................................11
3.3.2.2. Internal Sources...........................................................................................................11
3.4 SELECTION...................................................................................................................13
3.4.1 Selection Process.........................................................................................................................13
3.4.1.1 Pre-screening and short listing:...................................................................................13
3.4.1.2 Test / Interview:...........................................................................................................14
3.4.1.3 Final selection:.............................................................................................................14
3.4.2 Orientation:..................................................................................................................................14
3.5 TRAINING AND DEVELOPMENT............................................................................15
3.5.1 Hbl’s Training Methods...............................................................................................................15
3.5.1.1 On-the-job Training (OJT):.........................................................................................15
3.5.1.2 Off-the-job Training:...................................................................................................16
3.5.2 Types Of Trainings Provided By Hbl:.........................................................................................16
3.5.3 Employee Development:..............................................................................................................16
3.6 PERFORMANCE MANAGEMENT............................................................................17
3.6.1 Performance Appraisal At Habib Bank Limited:........................................................................17
3.6.2 Performance Appraisal Method At Hbl.......................................................................................18
3.6.1.1 Forced Distribution Methods / Bell Curve Method....................................................18
3.6.1.2 Graphic Rating Scale Method.....................................................................................18
3.6.2.3 Performance Appraisal Form Of Hbl..........................................................................19
3.7 EMPLOYEE COMPENSATION & BENEFITS.........................................................20
3.7.1 Pay And Grades:..........................................................................................................................20
3.7.2 Kinds Of Allownces At Hbl:.......................................................................................................20
3.7.3 Provident, Pention Funds And Other Benefits Scemes...............................................................20
3.7.4 Leaves Schedule..........................................................................................................................20
3.7.5 Eobi..............................................................................................................................................20
CHAPTER-4...........................................................................................................................21
4.1 CONCLUSION AND RECOMMENDATION..........................................................................21
4.1.1 Conclution.......................................................................................................................21
4.1.2 Recommendations...........................................................................................................21
4.1.3 Questionnaire..................................................................................................................22
References................................................................................................................................23
 EXECUTIVE SUMMARY
This project is about the HR practices of HABIB BANK LIMITED widely known as HBL.
The information about their working group and the necessary practices performed related to
HR in their head quarter at Karachi was gathered by personally interviewing the reginal/area
manager of north region by visiting the link road branch of HBL Abbottabad.

In it we focused on the bank response towards its employee and the employee’s behavior in
regard to bank. As, gathered information about the HR- policy, planning and Implementation
is the valuable resource to understand the bank & their employee’s patterns.

The stated material gathered through valuable resources is almost authentic towards the
organization current scenario. In broadly speaking we have covered all the major functions of
Human Resource Department of HBL.

According to our experience and information gathered about department is summarized and
possibly explained in a report, whereby necessary an organisational chart is also developed in
this regard .

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 CHAPTER-1

1.1 INTRODUCTION
HBL is the first commercial bank to be established in Pakistan in 1947. Over the years, HBL
has grown its branch network and become the largest private sector bank with over 1,700
branches and globally +2,100ATMs and with almost 14 million clients.

The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51%
of the Bank's shareholding and management control. HBL is majority owned (51%) by the
Aga Khan Fund for Economic Development, 41.5% of the shareholding is retained by the
Government of Pakistan (GOP), while 7.5% is owned by the general public i.e. over 170,000
shareholders following the public listing that took place in July 2007.

HBL with a global presence in over 15 countries spanning across four continents, subsidiaries
and associates in Hong Kong and the UK, affiliates in Nepal, Kenya and Kyrgyzstan and rep
offices in Iran and China, HBL is also the largest domestic multinational. The Bank is
expanding its presence in principal international markets including the UK, UAE, South and
central Asia and the Far East.

Key areas of operations are product offerings and services in Retail and Consumer Banking.
HBL has the largest Corporate Banking portfolio in the country as well as internationally
with an active Investment Banking service, SME and Agriculture lending programs,
Financial Institutions & Global trade Services, Transaction Banking and Islamic Banking and
banking services are offered in urban and rural center

HBL is the largest executor of CPEC related financing in Pakistan and coupled with being the
first Pakistani bank to start Renminbi (RMB) operations makes the Bank a key player in this
economic initiative.

1.2 HISTORY
Originally established in 1941, HBL moved its operations to Pakistan in 1947 at the request
of Muhammad Ali Jinnah hence, becoming the first commercial bank to lay its foundation in
the country. Embarking on a progressive journey, HBL continued to grow and expand in the
successive years. The Bank's first international branch opened in Colombo, Sri Lanka in
1951, while the construction of the iconic Habib Bank Plaza was completed in 1972, the year
that also marked the commemoration of HBL'S 25th anniversary.

2
With a sizeable domestic share, HBL was nationalized in 1974. The Bank became a trend
setter in the banking industry, acquiring the lion's share in inward foreign remittances and a
major market share in loans to small industries, traders and farmers. International operations
expanded and HBL now operates in over 20 countries across four continents.
In February 2004, the bank was privatized and the management control of the bank was
handed over to AKFED. By April 2015, the Government of Pakistan divested its entire
shareholding of 41.5% through the Privatization Commission of Pakistan, thereby officially
making HBL Pakistan's largest private bank.
HBL has not just been a pioneer in the banking industry, but has also been a platform that has
enabled dreams for millions of people. It has time and again, proven to be a catalyst for
change by initiatives that have elevated Pakistan’s image and reputation. From bringing back
international cricket to Pakistan through the HBLPSL, to helping strengthen the economy of
the country through initiatives like CPEC, HBL continues to enrich lives of Pakistanis around
the world.

1.3 MISSION AND VISION STATMENT

1.3.1 Vision:
“Enabling people to advance with confidence and success”

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

1.3.3 Values:
Our values are the main principles that define our culture and are brought to life in our
attitudes and behaviour. Our values make us unique and unmistakable.

1.4 OBJECTIVES/GOALS OF HBL:

To fulfil the aim of excelling quality and diversified services and its mission HBL has its
main objectives as follow.

 To earn profit for the Bank itself and maximize its shareholder’s value.
 To provide solutions for multiple requirements of clients of diverse Financial nature.

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  To manage with the changing trends of the modern day financial market.
 To be a diversified bank by offering all basic consumer services along with
specialized services
 Honest and ethical conduct, including ethical handling of actual or apparent conflicts
of interest between personal and professional relationship.
 To provide employment opportunities to people.
 To help in development and industrialization of the country.

1.5 ORGANIZATIONAL CULTURE OF HBL:

Organizational culture is the behavior of humans that includes the organization values,
beliefs, working language and system as well as way of dressing and code of conduct to be
followed. HBL has a policy of total employment opportunity and have 50% seats for both the
genders. To maintain the organizational integrity and reputation they have code of ethics to be
followed by the employees and to promote transparency they are expected to manage the
conflict of interest. HBL has a work environment where employees can explore
their potential whether locally or in the international arena. Thus, permitting the employees to
achieve their professional goals in accordance with the bank’s overall objectives.

HBL has a strict rule and regulations and employees learn culture by managers, trainings are
conducted, books and different workshops are organized for the employees. A system of
shared meaning held by members that distinguishes the organization from other
organizations.

1.6 KEY PERSONNELS OF HBL

1.6.1 BOARD OF DIRECTORS
1. Mr. Muhammad Aurangzeb (President & CEO)
2. Mr. Sultan Ali Allana (Chairman)
3. Mr. Moez Ahamed Jamal (Director)
4. Ms. Sadia Kha (Director)
5. Mr. Shaffiq Dharamshi (Director)
6. Mr. Agha Sher Shah (Director)
7. Dr. Najeeb Samie (Director)
8. Mr. Salim Raza (Director)

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1.6.2 MANAGEMENT TEAM:
1. Mr. Muhammad Aurangzeb
2. Mr. Sagheer Mufti
3. Mr. Aamir Irshad
4. Mr. Aamir Kureshi
5. Mr. Aamir Matin
6. Mr. Abrar Ahmed Mir
7. Mr. Adnan Pasha Siddiqui
8. Mr. Afaq Khan
9. Mr. Ahsan Aziz
10. Mr. Amer Aziz
11. Mr. Armughan Ahmed Kausar
12. Mr. Farhan Talib
13. Mr. Faisal Lalani
14. Mr. Jamal Nasir
15. Mr. Khalid Mohsin
16. Mr. Mian Ejaz Ahmed
17. Mr. Mohammad Ali
18. Mr. Nassir Salim
19. Mr. Naeem Ahmad
20. Mr. Nauman Riaz
21. Mr. Naveed Asghar
22. Ms. Neelofar Hameed
23. Mr. Rayomond H Kotwal
24. Mr. Risha Mohyeddin
25. Mr. Rizwan Haider
26. Mr. Salman Jafri
( President & CEO)
(Chief Operating Officer)
Head - Branch Banking
Head - Consumer Banking
Head - Technology Strategy
Chief Innovation & Financial Inclusion
officer
Chief of Staff
Head - Islamic Banking
Head - International Compliance
Head - Development Finance
Chief Internal Auditor
Head - Corporate & Investment Banking
Head - International Banking
Chief Human Resources Officer
Head - Remedial and Structured Credits
Head – Legal
Head – Distribution
Head - Global Operations
Head - Business Transformation
Chief Compliance Officer
Chief Marketing Officer
Company Secretary
Chief Financial Officer
Global Treasurer
Chief Risk Officer
Chief Dealer Treasury
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1.7 ORGANIZATIONAL STRUCTURE

6
 Chief Corporate
Communications office

Chief Innovation and

Financial Inclusion Officer

Chief Marketing Officer

CFO Rayomond Kotwal

Company Secretary

COO Sagheer Mufti

Head of Business
Transformation

Head Of Global
Operations

Head Of Legal Affairs

Head Technology Strategy

Head International
Compliance

Head of Regulatory
Chief compliance officer Compliance,Policies &
Precrdures

Chief human Resource Head of Transformation,

Officer Global Compliance

Chief of staff
CEO Muhammad
Aurangzeb

Chairman Chief Risk Officer

Sultan Ali Allana

Global treasurer Chief Dealer Treasury
Director shaffiq
Dharamshi

Head Corporate
&Investment Banking
Director Moez Jamal
BOD

Head of Consumer
Banking
Director Sadia Khan
Head Commercial
Banking
Head Branch Banking
Director Syed Raza
Head,Distribution
Head, Development
Finance
Director Najeeb samie

Head, International
Banking
Director Agha Sher Shah

Head, Islamic Banking

Chief Internal Auditor

CHAPTER-2

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2.1 METHODOLOGY
This project is about the HR practices of HBL to manage human resource of an organization
for which we were directed to visit and gather information from the related field employee.
As, HR practices of HBL held at main head office at Karachi so, we visit its branch at link
road Abbottabad where regional/area manager “Shah Nawaz” used to sit. We meet him and
tried to get HR policy related information.

Before having a meeting with the manager thorough study has been done by utilizing
different available resources (internet, books, articles) to get prepared for collecting as much
data as we can from organization through different questions about different functions of
HRM management .That session was very fruitful in regard of clearing our queries about the
different aspects of policy (requirement, selection, training and development, performance
appraisal, Compensations etc.).

Following approaches and methods were used to collect data:

2.2 SOURCES
Primary and secondary data is used to generate this report and the sources to collect that data
are as follow:

2.2.1 PRIMARY DATA

First-hand data was collected by using interview and questionnaire.

2.2.1.1 INTERVIEW METHOD TO COLLECT DATA:

In our project we choose interview method to collect data from HBL .We get an
appointment from the area manager before going there and select unstructured way of
interview to questioned. One by one different functions were discussed and data was
recorded about the HR policies .Our questions were open ended in order to get maximum
information about it.

Main information was obtained by area manager which was a smart choice as he is quite
more aware of HR policy but later on further information is gathered by a female
employee at the desk, like types of trainings and performance appraisal method etc.

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2.2.2 SECONDARY DATA:
Secondary data was collected from different sources (internet articles, books, researches,
HBL’S online website).

 Previous internship reports

 Annual reports of HBL
 Websites
 Newspaper, Brochures, Manuals
All these sources were very helpful in obtaining information and completing the project.

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 CHAPTER:3
3.1 Human Resource Department of HBL
Human Resources at HBL is directed towards achieving employee satisfaction and creating a
conducive and supportive environment for the mutual benefit of both the employees and the
Bank. The functioning of HR is divided into various units and each unit with its unique
importance works for enhancing personnel satisfaction.

HBL has a very active and one of the best HR department in Pakistan and across the
worldwide. Responsible for hiring capable, skilful and well educated employees, selected
through a special selection procedure based on written test and interviews to hire the most
appropriate applicant .

HBL is a large organization with almost more than 200 HR, to serve a staff of 14000
employees. HR department of HBL has centralized it functioning with presence in 18
domestic region

3.2 THE HR DEPARTMENT OF HBL BANK PRACTICE THE

FOLLOWING HR FUNCTIONS
Human resource practices at HBL begins with the job analysis .

3.2.2 JOB ANALYSIS

This analysis “involves the identification and description of what is happening on the job
accurately and precisely identifying the required tasks, the knowledge, and the skills required
for performing them, and the conditions under which they must be performed.”

Job analysis has its significance because all the gathered important information will be used
in recruitment and selection analysis, compensation, and performance appraisal, training and
resolving other issues facing by the HBL.

HBL takes Job analysis services from Sidat Hyder Morshed Association (SHMA) according
to report supervised by (Mr. Javed Bhatti) lecturer of COMSATS Attock city which is
the biggest HR consulting firm in Pakistan. The methods which are used By HBL in
collecting job analysis information are.

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3.2.2.1 The Interview for job analysis:

Interview is a big source in collecting information in the job analysis.

HBL prefer home country employee as they are easily available and punctual also they are
aware about the surrounding culture values and tradition.
HBL thinks that this method is effective for assessing what a job entails, needs, and involving
employees in the job analysis is essential. Individual employees, group of employees and
supervisors with vast knowledge about jobs are interviewed hence preferred interview
method.
3.2.2.2 Questionnaires method:
In questionnaire method employees are asked to fill the questionnaire containing the question
i-e structured or open ended that describes the job-related duties and responsibilities.
But HBL is against of this method, as it is time consuming and get nothing.
3.2.2.3 Observational method:
By using the observation method, a job analyst either observe the employees directly or
through reviews of workers on the job.Secondly it could be observed through another hidden
identity worker who becomes customer of that employee.
As, HBL is not in accordance with this method because obviously employees performed well
if organization check them individually and continuously.
.

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 3.3 RECRUTMENT
3.3.1 RECRUITING GOAL
The goal of recruiting, is to communicate the position in such a way that job seekers respond,
i.e to attract the potential applicants towards the vacant position through advertisement.

3.3.2 RECRUITING SOURCES

It includes the sources that HBL utilizes to fill up the vacant position. In recruitment process
first of all planning session is occurred, and it is determined that which section of HBL will
have to fill and how to fill. So, job vacancy ads are spread through different Medias like
newspapers and internet.
3.3.2.1 EXTERNAL SOURCE
Outside sources which are used by HBL are:
1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc)
2. Trade and professional journals (Aurora Magazine)
3. Internet job sites (rozee.pk)
HBL uses a website for recruitment. 100% response HBL get from the cyberspace recruiting
(website).

I. External sources of candidates:

1. Sidat Hyder Morched Association works for outsourcing for HBL.
2. College recruitment
3. Employee referrals
4. Walk-ins
II. Campus recruitment:
As part of human resource strategy, HBL visits various universities across the country to
induct & groom fresh business graduates every year.

Enthusiastic and talented youth form the backbone of its banking operations and are
nurtured to become future leaders at HBL. HBL hires fresh talent on a permanent basis
and offer a wide range of career opportunities across all functions, including Finance,
Marketing, Operations, Information Technology and Human Resources.

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 3.3.2.2. INTERNAL SOURCES
If the vacancy is created then, HBL also finds the candidate internally. HBL if hired its
internal

employees, even then the proper selection procedure is followed by them. HBL do internal
search by their own in following manners.

1. Job Posting

2. Rehiring the former employees

3. Final Selection within the Organization

I. Job posting :
Related to vacant position , job advertisement/opportunity is posted at personal internet
website by HBL. They inform their employee about the vacancy of seat at particular
department even by sending mails to their personal account created with organization.

II. Rehiring the Former employees:

It is an internal hiring source used by the HBL. Rehiring the former employees is the
process in which HBL rehires the former employees at new position. But this process is
practiced very rarely.

III. Final Selection within the Organization:

After going through all the processes the best candidates according to HBL’S
selection boards are selected.
IV. Employee Referrals
One of the best source for searching the best individuals/applicants who will perform
effectively on the job is recommendations of current employee’s.As, employees rarely
recommend someone unless they believe that he/she can perform adequately or
efficiently.So,
HBL prefer those candidates who are under employees referrals .

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 3.4 SELECTION
3.4.1 SELECTION PROCESS
As, selection process is based on the eight steps that include the initial screening interview,
completion of the application form, employment test, and comprehensive interview,
background investigation, realistic job preview, conditional job offer, medical /physical
exams, permanent job offers.
But the procedure followed by the HBL comprises on written test followed by the panel
interview for the employee selection .

The following diagram will provide an overview of selection process of HBL.

Vacant position

Analysis of positions and Recruitment

Identify candidates

Training & Prescreening and short listing Develop candidates

development database

Test / interview

Final selection

Recruitment and selection

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

3.4.1.2 Test / Interview:

Short listed candidates take a computer based written test , in which those who got the
minimum passing marks according to the criteria of position will be called for interview.

Interview conducted by HBL is panel based .Among the panel there are HR experts along
with the representatives of that particular department where vacancy has been created and the
controlling officers i.e a panel comprises of minimum three people.

Types of question asked in interview:

 Situational
 Job related
 Stressed
 Puzzled questions

3.4.1.3 Final selection:

Candidate assess on the basis of answers given to the questions asked in interview. The best
candidates according to HBL’s selection board are selected and send a job letter. HBL take
all the required documents, and make them to signed a bond of time that means for particular
time period person can’t leave the organization and after all the formalities send them on
training.

3.4.2 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
 Information on employee benefits
 Personnel policies
 The daily routine

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  Company organization and operations
 Safety measures and regulation

3.5 TRAINING AND DEVELOPMENT

Employee training refers to present-oriented training that focuses on individuals current job,
providing learning experience to improve the skills that will help them during job.

Training and Development of HBL is five step process.

1. Needs analysis:
HBL identify job performing skills, assess skills of trainee’s and then develop objectives.
They determine need on three major human resource areas i-e where is training needed?
What specifically an employee must learn to be more productive? And who need to be
trained?. An internal audit and employee performance appraisal helps to point out.

2. Instructional design:
After need assessment training program is designed, that includes workbooks, exercises
and activities.

3. Validation:
Before implication they present the training before the small representative audience.

4. Implement the program:

They train the actual targeted group of employees.

5. Evaluation:
Assessing whether the program is successful or not.

3.5.1 HBL’S TRAINING METHODS

3.5.1.1 On-the-job Training (OJT):
HBL mostly trained employees on the job whenever new policies or methods are introduce
within organization .Trainings are done through online classes on employees portal or by
attending the training classes at main headquarter.

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Coaching / understudy: It is the OJT method in which employee’s are coached and taught by
profession that how to perform the job in order to meet HBL’s goals and objectives.

Audio/Video: HBL used audio and video training method for training the new applicant’s or
selected candidates.

3.5.1.2 Off-the-job Training:

For training the employees off-the-job special case studies are provided to employees having
some dilemma about banking sector. By solving those case studies employees get training to
take bold and effective decision in crucial situations.

Secondly employees are encouraged to participate in the seminars arranged by banking

sectors not just in the Pakistan but also beyond the borders. Employee gets aware of the
authentic knowledge about the new horizons of banking sector which is useful for HBL.

3.5.2 TYPES OF TRAININGS PROVIDED BY HBL:

i. Operational Risk Management.
ii. Global Remittance Business Products Training.
iii. HBL Nisa eLearning Module.
iv. Business Continuity Planning General Awareness eLearning.
v. Anti-Bribery and Corruption eLearning.
vi. HBL Konnect – Branchless Banking eLearning Module.
vii. HBL’s Code of Ethics and Business Conduct eLearning.

3.5.3 EMPLOYEE DEVELOPMENT:

It is the future-oriented training that focuses on employee personal growth or preparing them
for next higher level. For employee development following practices are done.

Job Rotation: Moving a trainee from department to department in order to broaden his or her
experience and identify strong and weak points. HBL’s Manager Associate program is used
for job rotation training.

Special Assignments: These assignments are actually related to tasks within the branch by
achieving those tasks assigned by trainer, employee gets trained.

17
Action Learning: Management of HBL trainees are allowed to work full-time analyzing and
solving problems in other departments.

Outdoor Training: Outdoor training typically involves some major emotional and physical
challenge.

3.6 PERFORMANCE MANAGEMENT

As, performance management includes all the activities that ensure goals are consistently
being achieved in an effective and efficient manner. It is a continual feedback process in
which the observed outputs are measured & compared with the desired goals. At HBL
employees are given opportunities to work on harder projects, paired less-skilled employees
with expert employees & employees can direct and make decisions in performance
management model.Growth is not a function of time but rather of performance at HBL.

 Following are the Tools used by HBL for performance management:

 Developmental goal setting
 Ongoing performance monitoring
 Ongoing feedback
 Coaching and support
 Performance appraisal
 Rewards, recognition, and compensation

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3.6.1 PERFORMANCE APPRAISAL AT HABIB BANK LIMITED:
Performance appraisal, is a method by which the job performance of an employee is
evaluated and compared with the standards. Performance appraisal of HBL is a structured
formal interaction between a subordinate and supervisor and appraisals are generally,
conducted annually for all the staff.
Each staff member is appraised by their line manager & Directors are appraised by the CEO,
who is appraised by the chairman.
According to book of HRM by (Stephen P. Robbins) the performance appraisal methods
which. are used by the different organizations world wide.
 Management by objectives
 Graphic rating scale
 360 degree appraisal
 Trait rating
 Behaviorally anchored rating scale

3.6.2 PERFORMANCE APPRAISAL METHOD AT HBL

Two types of appraisal methods are used at HBL.

3.6.1.1 Forced Distribution Methods / Bell Curve Method

The rater, are “forced” to distribute ratings for the individuals being evaluated into a
prespecified uperformance distribution.
Small percentage of ratees are to be placed in the extremes (best and worst performers)
while, larger percentages of ratees are placed in the middle of the performance
distribution.
3.6.1.2 Graphic Rating Scale Method
It is used for high executive level – Vice president and above him in HBL. Managers are
asked to score an individual against a number of objectives/attributes.

Following is the scale to evaluate the employee performance.

5.Outstanding Exceeds targets by 20%
4.Exceeding Expectations Exceeding expectations

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3.Meeting expectations Good contributor
2.Missing expectations Misses targets up to 10%
1.Below expectations Misses target more than 10%

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3.6.2.3 PERFORMANCE APPRAISAL FORM OF HBL

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 3.7 EMPLOYEE COMPENSATION & BENEFITS

The compensation and benefits are the most important part of the human resource department
at HBL , which help the organization to recruit, retain, and motivate highly qualified
employees. HBL has the compensation system in accordance to government system of
compensation and benefits & allowances are given to an employee on the basis of
performance appraisal.

3.7.1 PAY AND GRADES:

Pay of each employee is determined as pay defined in each employment grade approved by
the Board of Directors. The grant of special pay or allowances to the holder of any post or to
any other employee shall require the section of the Authorized Person.

3.7.2 KINDS OF ALLOWNCES AT HBL:

Following allowances are provided to employees based on performance and grades.

 House rent allowance

 Utility allowance
 Medical allowance
 Petrol ceiling Education

3.7.3 PROVIDENT, PENTION FUNDS AND OTHER BENEFITS SCEMES

All employees of HBL in the permanent service of the Banks in Pakistan becomes the
member of Bank’s Provident fund, benevolent fund, Pension and /or gratuity and group
insurance scheme.

3.7.4 LEAVES SCHEDULE

Employee must have to avail 15 days mandatory leave and after availing that leave
encashment is provide to the employees.other leaves are (casual leaves , privilege leaves ,
sick leaves).

3.7.5 EOBI
Employment Old Benefit facility has been provided to every Person working in the HBL. 60
Rs/ is deducted from each employee salary which is submitted against the fund.

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 CHAPTER-4

IV.1 CONCLUSION AND RECOMMENDATION

4.1.1 CONCLUTION
Habib Bank Limited (HBL) is one of the largest bank in Pakistan and ranked 1 to 3 in
Asia. As the Bank is the Financial Institution and its major dealings are in deposit and
lending but without Human Resource nothing is possible. The role of HRM is just like
a hub to manage its human capital in order to meet the organizational goals and
objectives. HRM process in the organization involves all the stakeholders to have
their input in organizing, planning, developing and controlling the human resource.
There are different methods and approaches used to forecast HR need and demands.
Human Resource Department also plays the key role in employee recruitment and
selection. The working atmosphere of the bank is quite friendly and this very culture
of the HBL is seen in the norms of expected behaviors, values, philosophies, rituals
and symbols used by its employee. So, a good and satisfied human resource is
valuable and has no alternative. As, clients always comes to you with a hope and it’s
the responsibility of employee to fulfill that, and it’s only possible because of the
growth and development of the employee.

4.1.2 RECOMMENDATIONS
 The HR Department of the Bank should announced the promotion policy for the
clerical staff without further delay, as educated clerical staff could not enjoy
promotion from last many years. Therefore, the HR department should announce the
promotion policy as quickly as possible to make the dejected clerical staff.
 Further more the promotion of the officers should always be declared on merit. the
nepotism and safarish should not be allowed.
 The flaws in appraisal should be removed as soon as possible. The appraisal form
should be based on the following important points (Relevance, Reliability,
Acceptability, Practicality).
 Further more the employees should have right to appeal against the supervisor if he
thinks that he is wrongly evaluated.

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  There should be more training program, specifically for these employees who are
working in the field. There should be some special training program for the cashiers
of the branches, that how they can serve service excellence during their job.
 Some more professionals of HRM should be posted in the HR Department of the bank
and the professional skills of the people who are already working in the HR
department of the bank should be improved with more training program/course.
 The HR Department should make more compensation for the employees working in
the bank e.g. the education assistance for the children of employees and marriage
grant for the marriage of the daughters of the employees. These compensation
programs would improve the productivity of the employees.
 Bank should introduced incentive plans for employees on regular basis so that
employees may work whole heartedly for the welfare of their organization. While
giving incentives qualification, work, experience, hard work and such other factors
must be considered.
 Fresh graduates should be Recruited as combination of fresh and experienced will
produce better results and Will improve the efficiency management.

4.1.3 QUESTIONNAIRE
1. What is the detailed process of requirement?
2. How does the HBL do job analysis before requirement?
3. What internal and external sources are used in advertisement?
4. Is there any training session after selection?
5. What Types of trainings are given ?
6. Performance appraisal method?
7. Procedure of benefits and incentives given?
8. What is the organizational code of conduct to be followed ?
9. In case of any harassment how does the organization deal with?
10. Is HBL promote equal employment opportunity?

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 References
file:///C:/Users/aymen/Downloads/HBL.HR.MINTERNSHIPREPORT.pdf
https://bohatala.com/performance-management-and-appraisal-at-habib-bank-limited/
https://www.academia.edu/9580384/HRM_Report_on_Habib_Bank_Limited_HBL_
https://www.hbl.com/HISTORY
https://www.slideshare.net/danish1981/recruitment-process-of-habib-bank-limited
https://www.theofficialboard.com/org-chart/hbl-habib-bank-2
https://www.ukessays.com/essays/commerce/human-resource-practices-at-hbl-
commerce-essay.php
https://www.ukessays.com/essays/management/the-hr-department-of-hbl-bank-
management-essay.php

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