Report on Human Resource Analysis of HBL

By

Tahir sattar

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 Table of content

Content Page #

Introduction 3

HBL overview 4

Vision, Mission and values 4

HBL Hr plan and strategic goal 5

Job analysis at HBL 6

Recruitment and selection procedure at HBL 6

Training procedure of HBL 8

Hierarchal structure of the bank 10

Performance appraisals in HBL 11

Promotion procedure 12

Benefit and compensation 13

Conclusion & recommendation 15

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 Introduction

This is report on the human resource analysis of Habib Bank limited. In first part of
report a little introduction and back ground of Habib bank limited is given then the
strategic objective, mission statement, vision statement of HBL has been highlighted.
Then how HBL tends to align its human resource with its strategic objective
In this report the human resource department of HBL is the point of consideration that
how it works and why it is successful.
The job analysis procedure of HBL has been discussed in the report and what are the
ways it is conducted has been defined as well. The recruitment types and procedure of
different job openings and vacancies have also been discussed in the report. There are
different sets of steps taken for entry level position and experienced professionals to
recruit them both are the part of the report.
Training is also integral part of the activities of human resource department of any
company in this report the training procedure of HBL has been described that when
training is given to employees and what factors are considered to select employees for
training.
Hierarchal structure is the way which tells employees about there career path and chance
of growth that is why the hierarchal structure have also been included in the report.
The performance evaluation procedure and the final performance appraisals standards
and categories have also been described in the report the promotion of the employees is
closely related to their performance appraisals that is why their relation and all criteria for
promotion are also the part of the report.
Finally the compensation and benefit structure which is very important because it is the
outcome for employees for all their efforts and input. This report will cover the way how
salary package is constructed for employees of HBL and what all other benefits are being
provided to employees for their services.
Overall this report has been made to closely observe the procedure and performance of
human resource department of HBL and how it is successful in managing its employees
well in a way that is taking bank towards the achievement of its strategic objective.

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HBL

HBL was established in 1941 and established operations in Pakistan in 1947 and moved
its head office to Karachi. Its first international branch was established in Colombo, Sri
Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th
Anniversary.
With a domestic market share of over 40%, HBL was nationalized in 1974 and it
continued to dominate the commercial banking sector with a major market share in
inward foreign remittances (55%) and loans to small industries, traders and farmers.
International operations were expanded to include the USA, Singapore, Oman, Belgium,
Seychelles and Maldives and the Netherlands.
On December 29, 2003 Pakistan's Privatization Commission announced that the
Government of Pakistan had formally granted the Agha Khan Fund for Economic
Development (AKFED) rights to 51% of the shareholding in HBL, against an investment
of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control
was handed over 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.
HBL has about 1500 branches network in Pakistan and it has the largest branch network
of any commercial bank. HBL is pioneer in banking industry and providing its great
share in customer services and overall growth of industry and country.

Vision

“Enabling people to advance with confidence and success”

Mission

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

Values of HBL

HBL’s values are the fundamental principles that define its culture and are
brought to life in our attitudes and behavior. It is its values that make
it unique and unmistakable. These values are defined below:

 Excellence

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

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  Integrity

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 adapt its products and services
to meet these. HBL always strives to put the satisfaction of its customers first.

 Meritocracy

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

 Progressiveness

HBL believes in the advancement of society through the adoption of enlightened

working practices, innovative new products and processes, and a spirit of enterprise.

HBL’s HR plan and strategic Goal

HBL is currently Pakistan’s largest bank it aims to achieve more market share and to
become prominent bank in the world it has its presence in 25 countries now and planned
to enhance its network worldwide. The human resource of HBL is considered as a
precious asset and without its support the achievement of strategic goal is impossible so
the key component of HBL’s human resource planning is the alignment of all employees’
behavior with the strategic goal of the bank so that it can be successful in achieving its
goal.
HBL has created a challenging environment that encourages creativity and commitment.
In its chase of excellence, it is focused on attracting, developing and retaining the best
talent in the marketplace. Its dynamic culture offers diverse growth opportunities across
Pakistan and in 25 countries around the world.

HBL fosters a work environment where employees can realize their potential whether
locally or in the international arena. Thus, it enables its employees to achieve their
professional goals while keeping in synch with the bank’s overall objectives.

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Job analysis at HBL

HBL has its human resource department and the responsibility of job analysis is on the
human resource department the human resource department with the coordination of line
managers performs that duty.
HBL has years of its presence that is why the procedures are very set and about all the
things are well defined when ever there is any vacancy or new job creation in HBL
whether in branches or any other department the human resource department follows the
following procedure to conduct job analysis

Interview with concern department line manager:

Interviewing with the line manager of particular department make it clear for the human
resource department that what duties has to be performed and what are the skill needed.

Interviewing with the employee working currently on the same position

If there is any position on which currently some or more employees are working in that
case human resource department prefer to talk to them to analyze the job requirement
closely. It is very beneficial before making job description and job specification because
they are working in real condition in which new employee has to work.

Preparation of Job description and Job specification

After the interviews and input added by the human resource department the job
description and job specification are finalized and the procedure of job analysis is
completed. Job description tells us what has to be done on the job, the working
environment and reporting relationship although job specification tells us that what kind
of a person is needed for the job what should be his/her qualifications, behavior and other
skills required to meet the job demand.

Recruitment and selection procedure at HBL

Meritocracy is an integral part of HBL’s recruitment policy. Its merit-based recruitment

process incorporates the principles of equal opportunity and leads to the appointment of
the most capable candidate. This ensures openness and transparency, allowing greater
confidence in the outcome of the selection process. After finishing the job analysis the
HBL human resource department follows the following procedure to recruit people.

For recruiting on entry level position

Entry level position in HBL includes management trainees, management associates and
cash officers. For recruiting on entry level position on entry level position HBL assigned

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an agency to advertise the position and shortlist the candidates the agency takes following
steps

 Campus hiring

Human resource department’s representatives visit campuses of reputable universities

to identify and select the talent

 Advertising in newspapers

The recruiting agency first advertise the vacancy in leading newspapers like Daily
Dawn, Daily Jang with predetermined job description and job specification with the
guidelines to apply usually the applications are collected on the web based system
this advertisement usually have ten days time to submit the application for the job and
the bank name is not shown by the agency.

 Sorting of application and responding applicants

After the last date of the submission of applications the agency starts sorting
applications and giving invitation to the candidates which are short listed to the test
with the venue, date and time of test. The number of candidates to be invited for the
test is decided by the agency.

 Conducting test

On the particular date test is conducted and successful candidates are called for first
interview.

 Interviews

Now the bank itself conduct interview of the candidates short listed by the agency and
in interview the bank examine the skills and abilities of the candidates to meet the job
requirement which is the basic principle of any hiring. After taking first interview
short listed candidates are called for the final interview and after this interview they
are told to wait for the bank’s response.

 Offer letter

Finally the selected candidates are given offer letter which is consist of the job terms
and conditions including remuneration and other benefits attached with the particular
position provided by the bank.

For Senior positions/Experienced Professionals

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Senior positions are filled in two ways

 Internally

Whenever there is any position vacant in the bank and human resource department
wants it to fill internally in this case human resource department post the job on the
internal job posting display which is accessible to all employees of the bank through
the mail.

Interview

Interviews are conducted for these positions as well when the last date passed for the
submission of application and then employee are recruited on the new position for
which the application was processed. The current line manager recommend
employees to apply for the internal job without recommendation of current line
manager the applications are not accepted.

 Externally

Senior level positions are also filled externally in which the candidates in the industry
who ha the experience the of the same position or have the ability to perform job
nicely are offered for these positions following steps are taken

Contact management by human resource department

Human resource department of the bank keep in touch with the good workers in the
industry and try to hire those people who can be beneficial for the bank as employee.
On the other hand human resource department keep eyes on the satisfaction level of
the employees of other banks so the people who have good potential and are not
satisfied with their current job can be hired as opportunity arise.

Advertisement

Senior level positions are also filled by advertising but procedure is a bit different
here. Skill test is usually omitted at this level and candidates are judged in interviews
only. And finally a candidate is selected to fill the position after series of interviews.

Training procedure of HBL

HBL has its management and development institute at its head office in Karachi where
senior banking lecturers are available to facilitate the employees. Some of the facilitators
are the employees of HBL and some facilitators are specially called to conduct classes
and deliver lectures under special arrangements. Training is of following kinds.

For fresh employees

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When any lot of candidates is hired for HBL then HBL give them three months
comprehensive training. This comprehensive training covers

 General Banking

In this training account opening, remittances, locker management, cash management,

clearing, foreign currency operations are taught generally and special attention is
given to the department for which employees have been hired. These training module
also give the orientation of the bank and define the boundaries in which employee of
the bank has to work. It also gives the knowledge of prudential regulations to the
employee which employee has to comply with.

 Customer services

Customer service is a series of activities designed to enhance the level of customer

satisfaction that is, the feeling that a product or service has met the customer
expectation. To achieve the high level of customer satisfaction employees are trained
to deliver high quality customer services for that their behavior is turned in the certain
direction which leads them and the bank to keep itself remarkable in delivering better
services to the customers.

 KYC and AML

Identifying High-Risk Customer Relationships "Know Your Customer" is the

fundamental principle used in complying with the obligations of due diligence. It is
essential to obtain background information on customers in order to maintain a KYC
profile. Anti-money laundering measures must be efficient and reliable and must be
integrated in the information structure and processes of the company . KYC(know
your customer) and Anti money laundering are the key components of compliance
nowadays and State bank of Pakistan requires strict compliance in both areas that is
why employees are given training for these regulations at the time of hiring
necessarily.

For senior employees

Senior and already working employees are also given training at management and
development institute when needed senior employees are given training in following
conditions

 Implementation of any software

When bank implement any new software in that situation it is necessary to train
employees in running that system.

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  Amendment in regulations

When regulations are amended so the employees are given orientation to these
amendments in regulations

 Advancement of systems working

When current working system of bank is updated and advanced so the employees
who use that system are given training to these changes

 Launching of any new product

When bank launches any new product so its features and benefits are communicated
through training programs to the employees

 Low performance of employees

When employees do not perform consistently so there is need to train those

employees so that they can become able to perform better and include their share in
overall growth of the bank.

 Switching to other department

When employees are posted in any new department where they have no experience so
they are given initial training of that department to get better output from them.

Hierarchal structure of the bank

HBL has following hierarchal structure

 CEO

 General Manager

 Deputy General Manager

 Senior Manager II

 Senior Manager I

 Manager II

 Manager I

 Asst. Manager II

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  Asst. Manager I

 Officer II

 Officer I

 Jr. Officer

 Cashier

 Assistant

Performance Appraisals in HBL

Performance appraisals are conducted annually by the line manager. In branches branch
manager evaluate the performance of the staff of branch in other department
corresponding line manager evaluate the performance of the employees these evaluation
of performance then forwarded to corresponding regional office which further forward it
to the human resource department where appraisal of employees are finalized and issued.
The appraisal criteria include;

 Performance on the job

 Regularity
 Punctuality
 Target achievement
 Growth of the department
 Customer services
 Behavior with colleagues
 Behavior with supervisors and mangers

After analyzing the employee on the basis of above and some other criteria they are
divided in following categories

 TP (Top performer)
 EMP (Exceeding most parameters)
 ESP (Exceeding some parameters)
 MAP (Meeting all parameters)
 MSP (Missing some parameters)
 MMP (Missing most parameters)

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Promotion procedure

After performance evaluation the promotions for the year are announced promotion
policy is also announced each year the following are the considerations for the promotion

 Academic qualifications
 Appraisal awarded
 Test marks
 Interview

The weight age of all parts is given by human resource department and the candidates
secured higher marks are promoted. Normally the weight age is as follows
 Academic qualifications (10%)
 Appraisal awarded (40%)
 Test marks (30%)
 Interview (20%)

The 40% of appraisal category is also divided in three years more weight age is given to
most recent year’s appraisal and preceding years’ appraisal has less weight age.

Benefits and compensation of employees

HBL is an equal opportunity employer it gives market competitive pay and benefits to its
employees. Salaries of employees includes following items

 Basic pay
 House rent allowance
 Medical allowance
 Utility allowance
 Key allowance
 Branch banking allowance
 Conveyance allowance

Formerly the bonuses were paid three times in a year on year end, Eid-ul-fitr and Eid-ul-
adha but now these bonuses have been merged in the salaries of employees by increasing
their basic pay. And the bonus payment is now on the discretion of management but there
is fix time and commitment of bonus now.

HBL give other benefits as well to its employees which are as follows

 Medical facility

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HBL provide medical expenses reimbursement to its staff when they hospitalized and
all the consultation and bed charges are born by bank and bank also contribute 80% in
medicines. There are some limits of daily hospital charges for each cadre which are
communicated to all employees and HBL has all good hospitals on its panel in all big
cities to facilitate its staff.

 House loan

House loan is provided to staff on completion of five years service with the bank. It
has also different amounts cadre wise. Repayment of this loan is scheduled in
remaining service length of staff to minimize installment amount and facilitating staff
member. There is very low mark-up rate on house finance for staff.

 Auto loan

Auto finance is also provided to staff as well by the bank the minimum service
required to avail that loan is three years. The mark-up is also very low for that loan.
The loan is scheduled in ten years and 100 installments. Installment is not deducted in
the months of Eid.

 Personal loan

Personal loan is provided to staff. The mark-up rate on that loan is a bit higher as
compare to house loan and auto loan. This loan is provided for five years.

 Education allowance

Employees of HBL who has children getting education are given education allowance
monthly for one child for officer and above and for three children for below officer
cadre.

 Hajj Scheme

HBL send its employees on Hajj each year by balloting amongst staff and bear all
expenses of Hajj.

 Marriage allowance

When any employee gets married the marriage allowance is paid to him by the bank.

 Dare ness allowance

When employees are posted in the areas where there is difficulty in living or those
areas are very remote in that case dare ness allowance is paid to them by the bank.

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Conclusion:
HBL tends to align its human resource with its strategic goal and consider it very
important to achieve its objective for that there is a human resource department in HBL
working well to meet the requirement of human resource. The procedures of human
resource department have been highlighted in that report.
HBL’s human resource department perform job analysis by interviewing line mangers of
particular position and other same level employees for which people have to be hired.
The personal observations also help HR representative to develop job description and job
specification.
Recruiting employees in HBL has two types, (1) Entry level position (2) Experienced
professionals. For entry level position campus hiring is used and also recruiting agency is
given task to provide selected lot of candidates for final interview. The recruiting agency
first advertises the vacancy or opening in leading newspapers then collect web based
applications. After collecting applications agency sort these applications and call short
listed candidates for test after conducting test agency takes first interview itself and
forward short listed candidates to the bank HR department for final interview the
candidates are selected finally and offered job. For senior level positions there are two
ways to fill these vacancies internally and externally. Internally bank posts job on internal
job posting and interested candidates apply for the job by recommendation of their line
manager. Externally vacancy is advertised or HR department seek professionals in the
industry itself and offer job personally if they have great potential and ability to add value
in success of bank in deed.
Performance appraisals are very necessary to show the picture of employee’s
performance and keep them motivated. Annual performance appraisals are given to the
employees taken their job performance, behavior, target achievement, regularity,
punctuality and customer satisfaction in to account. These appraisals help employees to
get promoted because it has highest weight age in promotion the other components of
promotion marks are educational qualification, test marks and interview marks.
HBL is an equal opportunity employer and also believe in facilitating its staff. Bank
provides market competitive salary to its staff and many other benefits which includes
house loan, medical facility, auto loan, marriage allowance, and education allowance for
children, Hajj expenses, personal loan and many more.
“Overall HBL is maintaining good human resource policy and looking successful in
achieving its objective”

Recommendation:
 HBL must be increase the weightage of performance appraisal in promotion
procedure it leads to better performance of employees.
 HBL must be restructured its hierarchy because there is dual band at every level it
cause demotivation in employees.

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 Level of Campus hiring must be increased, the benefit of this new graduates will
comes with new ideas and motivation in youngsters must be increased.

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