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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:

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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. M. ISMAIL (L1F07BBAM0001)-2 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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:

HBLs values are the fundamental principles that define its culture and are brought to life in its attitudes and behavior. It is companys values that make its unique and unmistakable. Company values are defined below: Excellence Integrity Customer focus Meritocracy Progressiveness

This is at the core of everything HBL does. The markets in which HBL operates are becoming increasingly competitive, giving their customers an abundance of choice. Only through being the very best - in terms of the service HBL offers, its products and premises - can it hope to be successful and grow.

HBL is the leading bank in Pakistan and its success depends upon trust. Its customers and society in general - expect it to possess and steadfastly adhere to high moral principles and professional standards.

Customer focus:
HBL understands fully the needs of its customers and adapts its products and services to meet these. HBL always strives to put the satisfaction of its customers first.

HBL believes in giving opportunities and advantages to its employees on the basis of their ability. HBL believes in rewarding achievement and in providing first-class career opportunities for all.

HBL believes in the advancement of society through the adoption of enlightened working practices, innovative new products and processes, and a spirit of enterprise.

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Operational Structure:
HBL is one of the largest commercial bank of Pakistan. It accounts for a substantial share (20%) of the total commercial banking market in Pakistan with a network of 1,705 domestic branches; 55 overseas branches in 26 countries spread over Europe, the Middle East, Far East, Asia, Africa and the United States; 3 HBL wholly owned Subsidiaries namely Habib Bank Financial Services (PVT) LTD. Karachi, Habib Finance International LTD (Hong Kong) and Habib Finance Australia Ltd. Sydney; 2 Joint Ventures namely Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative offices in Iran and Egypt.

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 Household Name: HBL's brand name is well established. It has an extensive domestic network of 1705 branches reaching virtually every segment of the Pakistani economy.

A Full Service Bank: HBL provides its customers a complete range of banking products and services including retail banking, corporate and institutional banking, trade finance, consumer finance and credit cards.
An International Bank: HBL has a presence globally through an extensive international branch network described in the table below;

. Country
AFRICA Kenya Mauritius Seychelles Sweden ASIA Bangladesh Fiji Islands

Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation

1956 1964 1976 1982 1976 1991

5 4 1 1 2 1

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Maldives Singapore Sri Lanka Karachi EPZ MIDDLE EAST Bahrain Lebanon Oman UAE EUROPE Belgium France Netherlands Turkey UK USA

Branch Operation Branch Operation /OBU Branch Operation Branch Operation Branch Operation /OBU Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation Branch Operation

1976 1971 1951 1983 1969 1964 1972 1966 1975 1980 1979 1983 1961 1971

1 1 3 1 3 1 11 8 1 1 1 1 6 1

Ownership Structure
State Bank of Pakistan Islamic Republic of Pakistan State Life Insurance Corp. of Pakistan Other Public Bodies Outstanding Shares (1,217,849,500)

Percentage (%)
92.24 1.30 0.23 0.05 100

National and International events of HBL:

1951 HBL opened the first of 3 branches in Sri Lanka. 1952 HBL established Habib Bank (Overseas). 1956 HBL opened first of 5 branches in Kenya. 1957 or 1958 HBL opened a branch in Aden. 1961 HBL opened the first of what would become 6 branches in the UK. UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut. 1966 HBL opened the first of 8 branches in the UAE. 1969 HBL opened first of 3 branches and an OBU in Bahrain. However, HBs branch in Aden is nationalized. 1971 HBL opened an OBU in Singapore and a branch in New York. 1972 HBL opened the first of 11 branches in Oman. HBL constructed Habib Bank Plaza in Karachi to commemorate the banks 25th Anniversary. 1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank (Overseas). 1975 HBL opened a branch in Belgium. HBL also merged with Standard Bank, a Pakistani bank. 1976 HBL opened a branch in the Seychelles, the first of two branches in Bangladesh, and a branch in the Maldives. 1979 HBL opened a branch in the Netherlands. 1980 HBL opened a branch in Paris and another in Hong Kong. 1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a representative office in Teheran. 1982 HBL opened a branch in Khartoum. 1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul. 1984 HBL established Habib American Bank in New York with a branch each in Manhattan and Queens, and a US International Banking Facility. HBL also opened a branch in California.

1987 HBL opened in Australia. 1991 The Habib Group established a separate private bank, the Bank AL Habib, after private banking was re-established in Pakistan. HBL opened a branch in the Fiji Islands, and took over the Paksistani branches of failed bank, BCCI.

1992 In Nepal HBL acquired 20% of Himalayan Bank. 1995 HBL established a representative office in Cairo. UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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1990s HBL established Habib Finance (Australia), and Habib Finance International Limited, Hong Kong. 2000 HBL established Habib Canadian Bank. 2002 On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had granted the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network, rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million).

HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. The issue was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its 6 branches and Allied its 4), into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5 percent shareholding, while Allied Bank has 9.5 percent. Simultaneously with the transfer of business to the new bank, both Allied and Habib Bank close down all independent operations in the UK.

2003 HBL received permission to open a branch in Afghanistan. 2004 On February 26, the Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees.

2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South Pacific.

Board of Directors
Sultan Ali Allana Chairman R. Zakir Mahmood


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Director Sajid Zahid

Director Ahmed Jawad

Director Mushtaq Malik

Director Yasin Malik


Board Committees
Audit Committee Mr. Iain Donald Cheyne

Chairman Mr. Sajid Zahid

Member Mr. Ahmed Jawad

Member Risk Management Committee Mr. Sultan Ali Allana

Chairman Mr. R. Zakir Mahmood

Member Mr. Mushtaq Malik

Member Human Resource Committee Mr. Sultan Ali Allana

Chairman Mr. R. Zakir Mahmood


Mr. Sajid Zahid

Member Group Chief Financial Officer Mr. Ayaz Ahmed

Company Secretary Ms. Nausheen Ahmad

Legal Advisor Mahmood Yousuf Mandviwalla

Bar-at-Law Auditors KPMG Taseer Hadi & Co. Chartered Accountants

Registered Office 4th Floor, Habib Bank Tower Jinnah Avenue Islamabad, Pakistan. Phone: 051-2872203 & 051-2821183 Fax: 051-2872205 Head Office Habib Bank Plaza I.I. Chundrigar Road Karachi - 75650, Pakistan. Phone: 021-2418000 [50 lines] Fax: 021-9217511 Registrars THK Associates (Pvt.) Ltd. Ground Floor State Life Bldg. No. 3 Dr. Ziauddin Ahmed Road Karachi. Websites UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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Corporate Treasury Internet Banking

Famous Controversy:
Habib bank has long been scrutinized by intelligence officials monitoring terrorist money flows. On July 18, 2007, Mariane Pearl, the widow of Wall Street Journal reporter Daniel Pearl, filed a lawsuit against Habib Bank Ltd over the 2002 abduction, torture and murder of her husband. The pending lawsuit alleges the bank and its subsidiaries knowingly conducted financial transactions and provided account services on behalf of Al Akhtar Trust, a Pakistani based charity trust. Al Akhtar Trusts accounts have been used to provide financial support to terrorists. However, HBL claims to have froze Al Akhtar Trusts accounts several years before Daniel Pearls abduction. On October 24, 2007, Pearl's lawsuit against HBL was formally dropped. 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) , but they otherwise did not explain their reason for dropping the action. The U.S. 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. antimoney laundering laws. After the U.S. Federal Reserve Board threatened formal charges, though none were filed, Habib Bank Limited agreed to strengthen the banks compliance. More specifically, the Fed ordered HBL to strengthen its transaction monitoring systems UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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and the filing of "suspicious activity reports" on transactions that do not fit the routine business patterns of the bank's customer base. 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). This is further supported by the recent book by L.K. 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.

Corporate Strategy and Businesses:

Maintaining a mix of short & long term deposits to minimize the cost of funds.

Asset Quality
Stringent Risk Management Unified IT System Intensive Training and Professional Recruitment

Re-organization of the Consumer and Retail Banking Businesses IT system enhancement Product offering enhancement Advancement of operations in urban areas

Retail Banking
Deposit Mobilization
Largest branch network in Pakistan Urban - 703 branches 80% deposits and 94% advances Rural - 734 branches 20% deposits and 6% advances UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN M. ISMAIL (L1F07BBAM0001)-12

Largest customer deposit base: 5mn+ Low cost/stable deposits

48% of total deposits

Agriculture Financing
Serves rural customer needs for agricultural inputs, storage facilities and Mechanization. Provides short and medium term loans Disbursement exceeds US$0.2bn during peak season Dominant bank in this segment: 700+ rural branches

Islamic Banking
Exclusive Islamic Banking branch network for both assets and liabilities.

Corporate Banking
Serves large corporate customers: multinationals, local private sector corporate and state owned entities Largest Corporate Banking in Pakistan Loan portfolio US$ 4.5 bn, market share corporate loans of 15% with participation in more than 80% of all major transactions. 10 branches with over 500 customers Specializes in working capital, trade, structured project finance & government commodity operations.

Investment Banking
Corporate M&A Advisory, Debt and Equity Capital Markets, Private Placements, Leverage Finance and Privatization Advisory Established itself as a premier player in a short time Handled over 80% of all major transactions taking place in Pakistan.

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


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Consumer Banking
Personal Loans, Auto Finance, Consumer Durables, Housing Finance and Balance Transfer Facility VISA Debit Card, Credit Card & CarToCar launched in 2005, 2007 & 2008 respectively.

Money market, Forex and Primary dealer in government paper New products launched: Derivatives (Interest Rate Swaps, FRAs, etc.)

Domestic Subsidiaries
Asset Management Launched Income, Stock Market and Multi Assets Funds. Habib Currency Exchange (Pvt.) Ltd.

Sale/purchase of foreign currency & remittances. First Habib Modaraba

Leasing business with annual growth of over 15%.

Introduction of Human resource Management department of HBL:

Human Resource management structure: The HRM department plays an important role in value of any company. HBL has very active and one of the best HR department in Pakistan as well as world wide. The structure is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29 Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831 Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers Grade-III and 10658 Clerical/Non-Clerical employees. The total staffing as per 1999 balance sheet figures is 23022.

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.

Geographic expansion strategy: It takes the company abroad. Acting upon this
strategy HBL has been expanded abroad. The abroad branches are mentioned above in introduction section. HBL is planning to expand its business and branches in more countries. 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.

Differentiation: HBLs strategy is to provide unique banking services to its customers

in banking sectors to make itself valuable for its customers.

Focus: HBL provides banking services to its customer in that way that customer cannot
get that services from other competitors.

Functional Strategy:
HBL identifies basic courses of action that each department pursues in order to get basic goals and objectives of HBL. Harmony of departments towards HBLs single goal makes it unique in the competitive market. M. ISMAIL (L1F07BBAM0001)-15 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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. Job analysis is every important as job analysis information is used in Selecting and recruiting, compensation, performance appraisal, training and in resolving other issues which HBL faces. HBL takes Job analysis services from Sidat Hyder Morshed Association (SHMA) which is the biggest HR consulting firm in Pakistan. 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. Individual employees, group of employees and supervisors with vast knowledge about jobs are interviewed. The format of interview is Structured and unstructured. 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

In questionnaire the employees solve the fill out questionnaires to describe their jobrelated duties and responsibilities. The formats of questionnaires are either structured or open ended.

Quantitative job analysis techniques:

Following methods are also used in job analysis which are called quantitative job analysis techniques UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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The position analysis questionnaire (PAQ): A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs. The Department of Labor (DOL) procedure: A standardized method by which different jobs can be quantitatively rated, classified, and compared.

Job description:
After getting job analysis information the next step is to describe job description which contains the points of job identification, job summary, chain of command relationships), responsibilities and duties, standard occupational classifications and standard of performance and working conditions.

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.

HR manual contains five processes

1. Selecting and Recruiting 2. Training and Development 3. Performance Appraisal 4. Compensation 5. Employee relation

1. Selecting and Recruiting:

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The recruitment and selection process starts with employment planning. This process of deciding what positions the firm will have to fill, and how to fill them. 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 HBLs selection is based. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team.

In recruitment process first of all planning session is occurred, in planning session it is determined that which section HBL will have to fill and how to fill. If there is a vacancy of executive job then succession planning is done for filling that vacant place. 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. Identify candidates:

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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. Outside sources: HBL uses outside sources for recruitment which are Advertising etc) 2. Trade and professional journals (Aurora Magazine) 3. Internet job sites ( Outside sources of candidates: 1. Sidat Hyder Morched Association works for outsourcing for HBL. 2. College recruitment 3. Employee referrals 4. Walk-ins Finding internal candidates: 1. Job Posting 2. Rehiring former employees Prescreening and short listing: Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board. After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume. Test/ interview: In this process short listed candidates are called for test and interview according to nature of their applied jobs. Selection Interview: Selection interview is conducted for short listed candidates. A selection interview is the procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries. M. ISMAIL (L1F07BBAM0001)-19 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein

Formats used in selection interview: Structured/Directed Unstructured/Non directed

Modes of Interview: Penal interview

An interview in which a group of interviewers questions the applicant. Structured sequential interview

An interview in which the applicant is interviewed sequentially by several persons; each rates the applicant on a standard form. Types of questions: Situational:

A series of job-related questions that focus on how the candidate would behave in a given situation. 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. 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. These sorts of questions are asked according to high designation of candidate. Puzzle questions:

Recruiters for technical and finance job use questions to pose problems requiring unique solutions to see how candidates think under pressure. Testing: Organizational performance always depends in part on subordinates having the right skills and attributes. Keep in view this point HBL tries its level best to hire highly skilled and suitable employee for each job. For judging these skills HBL conducted some tests of employees on the basis of Reliability UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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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. Types of test: Generally two types of tests are taken in HBL Tests of Cognitive ability Physical tests

o Cognitive test abilities consists of 1. Intelligence Tests Tests of general intellectual abilities that measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability are intelligence tests. 2. Aptitude tests Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability are aptitude tests. o Tests of physical abilities Tests that measure static strength, dynamic strength, body coordination, and stamina are physical. Job related to guards and deliverers go through this sort of test. HBL adopts recruitment process as Entry level programs Experienced professionals Campus recruitment Rehiring

Entry Level Programs:

HBLs Entry-Level Programs are structured to ensure that you will quickly assume responsibility for concrete tasks and important projects. Rotational assignments across UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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different business units provide a comprehensive and valuable experience in a relatively short amount of time.

Experienced Level Program:

HBL recruits experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. HBLs dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities. HBL encourages you to explore this section to find out about current job openings and how to submit your resume.

Campus recruitment:
HBL is proud of its ability to nurture individuals and empower them to hone their talents. 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. As part of HBLs 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. To attract the best young talent, HBLs resource department employs a pro-active strategy. HBL actively participates in campus seminars by giving presentations that highlight HBLs background, vision, mission, values, recruitment & selection process, future career prospects and overall business strategies. 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.

Rehiring Former employees:

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

Final Selection:
After going trough all the processes the best candidates according to HBLs selection boards are selected.


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. Training and development:

Training is the process of teaching new employees the basic skills they need to perform their jobs and development is result of that training. For training and developing HBL follows five steps process of training and development Needs analysis: Identify job performance skills needed, assess prospective trainees skills, and develop objectives. Instructional design: Produce the training program content, including workbooks, exercises, and activities. Validation: Presenting (trying out) the training to a small representative audience. Implement the program: Actually training the targeted employee group. Evaluation: Assesses the programs successes or failures. Task analysis:

In this area a detailed study of a job to identify the specific skills required, especially for new employees are analyzed. 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). If there is found some deficiency in performing job then training is highly recommended to recover deficiencies. Training methods used by HBL: UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN M. ISMAIL (L1F07BBAM0001)-23

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. Methods of OJT are Coaching or understudy Job rotation Special assignments Action Learning

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 HBLs goals and objectives. At managerial level the trainee works directly with a senior manager or with the person he or she is to replace; the latter is responsible for the trainees coaching. It is done at all levels of job. 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. In 2008 all managers have been trained to operate Misys Software (Automation of service provision and book management). Job Rotation: Moving a trainee from department to department to broaden his or her experience and identify strong and weak points. Job rotation is usually done at managerial level. HBLs Manager Associate (MA) program is used for job rotation training. Special Assignments: Special assignments are also given to employees for special training. These assignments are actually related to tasks within the branch by achieving those tasks assigned by trainer, employee get training. Action Learning: Management trainees are allowed to work full-time analyzing and solving problems in other departments. This OJT method is just for managerial level employees. M. ISMAIL (L1F07BBAM0001)-24 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

Off-the-job Training:
It is the method which is opposite to the OJT. In this method employee does not get training at his/her work place. This method of training is only for managerial level employees. 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. By solving those case study problems employee gets training to take bold and effective decision in crucial situations. 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.

Apprenticeship Training:
A structured process by which employees become skilled workers through a combination of classroom instruction and on-the-job training. It is actually combination of OJT and lectures delivered to employees. It may be for both levels of managerial and fresh employee. In this method employee is first given the lecture about his/her job and after that implementation of lecture in practical field is observed.

Informal Learning:
The majority of what employees learn on the job they learn through informal means of performing their jobs on a daily basis.

Effective Lectures:
Lectures about jobs are also delivered. These lectures are delivered to new employees as well as senior level employees and managerial level too. In these lectures employees are prepared for facing new challenges in the banking sectors and also told them how to achieve those challenges.

Succession Planning:
It is actually management developing program. Management development is attempt to improve current or future management performance by imparting knowledge, changing M. ISMAIL (L1F07BBAM0001)-25 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

attitudes, or increasing skills. In order to achieve management development, succession planning is done. Succession planning is a process through which senior-level openings are planned for and eventually filled. The main purposes of succession planning are Anticipate management needs, Review firms management skills inventory, Create replacement charts, Begin management development. HBLs Management Trainee (MT) program deals with succession planning. MT is defined in the following section of Training and developing methods. Training and development programs at HBL: HBL uses following programs for training and development Management Trainee Management associate Cash officers Internships

Management Trainee:
HBLs Management Trainee (MT) program looks for highly motivated individuals who exhibit the potential to excel as future leaders. The program is geared towards providing challenging work assignments complemented by a learning component for select individuals from reputable universities. At HBL, the MT program offers extensive interactive classroom training, on the job rotations and personal mentoring from senior management to provide a comprehensive learning experience. The objective of the program is to realize potential and translate the experience into a successful banking career.

Management associate:
HBLs Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. It provides accelerated development opportunities across HBLs branch network of Retail, Corporate & Commercial banking. During this program, candidates are assigned with challenging business scenarios to enhance their critical and analytic skills. Another crucial element of the program ensures M. ISMAIL (L1F07BBAM0001)-26 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

that managerial skills are honed and developed. This provides associates with the expertise required to handle supervisory and administrative tasks that will result in the development of successful business managers.

Cash officers:
HBLs Cash Officers Program catapults successful candidates to the front lines of the bank. Candidates in this program are the banks ambassadors and must have exemplary skills in dealing with clients. The program involves an extensive one-month training period based on branch banking operations before placement in the branches. Energetic and focused graduates from HEC recognized institutions with good communication and interpersonal skills qualify for HBLs Cash Officers Program. Before being placed at HBL branches, these individuals must exhibit a proven ability to add value and act as agents of change.

HBLs Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. Through the program, internees can support their career goals by using the internship as a launching pad for creating contacts with professionals in the field and identifying their own competencies to build a successful career with HBL.

3. Performance Management and appraisal:

Evaluating an employees current and past performance relative to its performance standards is called performance appraisal. A process that consolidates goal settings, performance appraisal, and development into a single common system to ensure that employees performance is according to companys aims is called performance management. Performance management and appraisal at HBL: HBLs performance management and reward systems ensure that goals are met in an effective and efficient manner. HBL defines a clear path for you to contribute to the organizations overall goals, peppered with regular reviews and feedback to help you gauge your progress. At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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accelerate to reflect your input. 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.

Performance Appraisal form of HBL:

HBLs performance appraisal form contains two sheets, one is FORM B2 and other is FORM B3. FORM B2 contains appraisal for Clerical staff at branch or Field Offices there are two main headings Area/factors and level of achievement points. Level of achievement point contains five points ratings A (4), B (3), C (2), D (0-1) and N/A. 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. Area A-Productivity contains 1. Job knowledge 2. TD clearing/Bills Ledger Posting 3. Timely Lodgment of Clearing 4. Followed Return unpaid cheques 5. Nothing of Stop Payment Instruction 6. Volume of Work Handled 7. Accuracy & Attention to Detail 8. Willingness & Ability to work with other units/people 9. Ability to write Effectively 10. Adoptability of new assignments 11. Deposit Mobilization /saving/current CPDC etc 12. Number of fresh account arranged 13. Reduction in customer complaint UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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14. Hajj application target 15. Timely Balancing of branch ledger/books etc 16. Accuracy in counting/cash handling & counting speed 17. Receiving of payments of utilities 18. Dispatch of requisite statements 19. Maintenance of guns in order 20. Zero theft 21. Delivery of letter/Dak in time 22. Quality of work 23. Speed of work 24. Filing and record keeping 25. Typing/data entry speed 26. Typing/data entry accuracy B-Individual Attributes contains 1. Professional/technical knowledge & competency 2. Initiative (eagerness to learn, enlarge knowledge) 3. Reaction to responsibility 4. Sense of responsibility 5. Oral communication Ability 6. Written communication ability 7. Sorting of notes 8. Cash excess/shortage situation 9. Performing under pressure 10. Ability to work without supervision 11. Willing to work after office hours C-Technology contains 1. Knowledge of computer 2. Knowledge of internet & E-mail

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D-Customer contains 1. Courtesy to Customer 2. Rapport with customer 3. Creative response to customer needs 4. Business sense (maximum revenue/ minimum cost) E-Personal contains 1. Health & energy 2. Appearance 3. Integrity & loyalty 4. Grooming 5. Manner of speech 6. Attitude 7. Intelligence 8. Leave record 9. Attendance record 10. Punctuality Each factor is marked tick against level of achievement and in the end total points scored is written in the specific box. Also the signatures of appraisee and appraiser are taken.

This form contains two big boxes. First box is about Development Plan/ Supervisor comments. In this box supervisor gives comments about appraisee strengths and further appraisees development needs (need to improve academic & professional qualification). Second box is called overall assessment box. In this box appraiser gives the overall performance grade to appraisee according to B2 form and the grade is given in form of A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then overall assessment is reviewed by reviewer and reviewer gives its comments too, but it is not necessary. After it final acceptance of appraisee is also taken along with signatures. Following is some brief detail about appraisal areas M. ISMAIL (L1F07BBAM0001)-30 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

Productivity is actually about the performance of employee in the clerical field. 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. Following factors of Productivity are defined briefly; Job knowledge: It is first and basic factor of productivity. This factor shows that how much employee has awareness about his/her job. TD clearing/Bill ledger posting: This productive factor indicates the ability of employee about ledger posting of HBL. His shows how much an employee is expert and clear in indicating or posting of ledger regularly. Timely Lodgement of clearing: This is the job in which the employee of HBL is to present the cheques of other banks, which are given by customers for depositing in their accounts in the State Bank before 10 oclock. In this assessment it is determined whether employee is punctual in presenting cheques to State Bank in the specific time. 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, inefficient money in the account of customers or other reasons cause refusal of cheques by State Bank. 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. Noting of Stop payment Instruction: In this job employee notes the stop payment instruction due to lose of cheques by customer. 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 is 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. 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. 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 not. M. ISMAIL (L1F07BBAM0001)-31 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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. 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. Adoptability of new assignments: In this job it is determined how much employee is able adopt new assignments related to his/her job. 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, current and CPDC (Crore Pati Deposit Certificate) purchased by customers. 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. 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. Reduction in customer complaint: This job is related with customer service member. In appraisal it is defined how many complaints of customers are reduced by employee. Haj application target: This job is related with Islamic Banking section of HBL. 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. Timely balancing of Branch Ledger/books: In this job employee has to balance the branch ledger on the daily basis. On the basis of balancing of ledger in time the employee is given grade points on appraisal sheet. 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, financial statements and number of accounts before authority of branch on monthly basis. While appraising employee it is defined that how much he/she is efficient and punctual in his/her job. M. ISMAIL (L1F07BBAM0001)-32 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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. The obedience of the employee to his/her head in the bank task is counted in this assessment. Zero Theft: In assessment the employee is assessed according to handling of his/her honesty in his/her job. It is counted that how much he/she has been committed with theft in performing job. Delivery of Letter/Dak in time: This job is about the deliverer of letter/Dak to the one bank to other banks, one branch to other branches of HBL and dispatch of cheques to State Bank. The employee is graded with points according to punctuality in delivery in the appraisal form. 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. 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. Filing and record keeping: In this job the employee is to file and record the data of customer for database. According to effectiveness of record keep employee gets points in appraisal form. Typing/Data entry speed: This is about computerized record keeping. In this factor it is assessed that how much the employee has speed in typing data. Typing/Data entry accuracy: In record keeping it is noted that how much accurate the employee is in typing data for database.

B-Individual Attributes:
This area of factor is about the employees attribute or properties in performing job. Followings are factors of individual attributes; 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. Initiative (eagerness to learn, 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. Initiative factor is very important in job field cause initiate new task in the field is good attribute of professional employee. M. ISMAIL (L1F07BBAM0001)-33 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

Reaction to responsibility: In this attribute it is assessed that how the employee reacts when some responsibility is given to him, it is noted whether he/she reacts warmly and professionally or considers new responsibility as a burden. Sense of responsibility: in this attribute it is assessed that how the employee takes the responsibility whether takes it professionally and serious or carelessly. Oral Communication Ability: In this factor it is assessed that how much employee has ability to communicate orally with the customers and head. Speaking skills are counted in this appraisal. Written Communication ability: In this attribute the ability and writing skills of employee is assessed. Sorting Notes: In this factor the ability of sorting and handling of currency notes are judged. It is assessed that whether employee is sorting notes according to sequence. Cash excess/shortage situation: Cash handling is noted in this factor. It is a negative appraisal. Some time employee gives or receives more or less amount by customers, if he/she gives more than real amount then he/she has to compensate this money from his/her own pocket. 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. 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. 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.

This is the area of appraisal in which the capability of using of technology of employee is assessed. Followings are major factors of area of technology Knowledge of computer: The knowledge of using of computer is counted in this factor. Knowledge of e-mail & internet: The knowledge of internet and sending/receiving is assessed in this factor of technology area.

D-Customer Service:

This is the area of appraisal in which the motivational and dedicated level of employee toward customer service is assessed. Followings are factors of this area; Courtesy to customers: in this factor of customer service area it is assessed that how much employee is courteous towards customers, whether he/she is deals with customers politely or harshly. 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. Creative response to customers needs: In this factor it is judged that how creatively and professionally the employee responses to customers needs regarding banking system. Business sense: This factor determines the sense of employee regarding business that whether he/she knows about economic terms and their uses.

E- Personal:
This is the area in which personality of employee is evaluated. Factors of this area are as following; 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. Appearance: In this factor the appearance of employee is counted. The dress code and manner of dressing is assessed. Integrity and Loyalty: In this factor the loyalty and integrity of employee is assessed. The dedication and commitment of employee while performing duty is counted. Honesty and faithfulness with job and company is also assessed. Grooming: In this factor the development and grooming of employees personality is counted. Manner or Speech: In this factor of personality the manner of speech or manner of talking to others are assessed. Manner of speech should be polite and understandable. Attitude: In this factor the employee gets point on the basis of positive and professional attitude in his/her personal life. Intelligence: In this factor of personality the intelligence of employee is evaluated.

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Attendance record/Leave Record/Punctuality: The employee is given grade points on the basis of regular and timely attendance according to time table.

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4. Compensation:
The salaries, rewards, bonuses, and incentives on the basis of job and performances are compensations. Compensation at HBL: HBLs focus is on attracting, developing and retaining the best in the business by offering market driven compensation and benefits packages. HBLs compensation and benefits strategy combines the need to maintain a high performance culture along with market competitiveness. Annual benchmarking exercises are conducted to stay abreast with industry standards. According to performance each employ gets benefits and compensation. Time does not matter only performance matters at HBL. Employees are paid in two forms and bonuses. Indirect financial payments: This mode of payment is not related to cash payments like medical, insurance, residence, car, car fuel etc. Direct payments Indirect payments

Direct financial payments: Pay in the form of wages, salaries, incentives, commissions,

5. Employee relation:
Employee Relations involves the body of work concerned with maintaining employeremployee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect work situations. The environment at HBL is cultural, ethical and challenging that that encourages creativity and commitment among employees. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, HBL enables its employees to achieve their professional goals while keeping in synch with the banks overall objectives. UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

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HBL believes in two skills for employee relation Interpersonal communication Conflict management Interpersonal communication skill: At HBL the first skill for managers to understand and practice is interpersonal communications, 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. Working with diverse groups of people requires a tremendous amount of interaction. If these interactions are positive, they can help create the right workplace climate, attitudes, beliefs and behaviors. Keeping in view these all points interpersonal HBL emphasizes on strong interpersonal communication skill for effective accomplishment of goals. Conflict management: In HBL the second skill for managers to leverage, is conflict management. It is actually conflict resolving approach. Learning to leverage this skill helps in resolving employee relations issues quickly and effectively, and creates greater satisfaction with the workgroup. In this skill manager let his/her subordinates to speak and say whatever they feel during working with manager. Manager cares employees emotions and feelings.

Our Suggestions for betterment of HBL:

HBL is Pakistans largest bank. It should eliminate the cost of online banking since they charge cost of online transaction or transfer. HBL is initiator of Tele-banking service which is unique service in Pakistan. Through this service we can get information about our personal account on telephone. Most of times customers find the service operator busy. HBL should increase their tele-banking service centre. 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. They should provide more and more opportunities to fresh graduates and masters. The process of promotion at HBL is slow so they should maximize the promotion process which would be source of motivation for their employees. M. ISMAIL (L1F07BBAM0001)-40 UNIVERSITY OF CENTRAL PUNJAB LAHORE, PAKISTAN

At many occasions HBLs ATM network gets slow and their AT machines dont allow for transaction they should renew their ATM links in order to make their customers avoiding inconvenience.

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