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ACKNOWLEDGEMENT
In regard of this report first of all we would like to thank Almighty ALLAH whose help made us able to complete this report. we would like to thank our Business Communication course instructor Sir Moazzam Sherre, his competent suggestions and guidance helped us in defining our goals, objectives and in finalizing our report in different aspects. This report is the combination of sincere hard work and dedication from our group members, their determination and enthusiasm. They were co-operative and helpful throughout this report .All these members have contributed equally well with lot of care and authority. We will highly appreciate suggestions for improvements in this report and its contents from everyone, especially from our companions and well wishers as we strongly believe that nothing is perfect in this world and there is always a room for improvement.

LETTER OF TRANSMITTAL
May 10, 2011 Sir Imran Mughal Introduction to HRM IQRA University Karachi Respected sir, We hereby present our final report on Allied Bank Limited as assigned by you as mandatory part of our course. The report represents a review of the organization's structure,functions and communication network. Bank. For preparing this report we have gathered information by personally conducting an Interview with Ms Zahid Ali (Senior Manager HR), Miss Farhat Fatima(Assistant manager HR) and other department's employees.The report also includes researches made by us through internet. We have tried our best to gather best possible information for this report. We are of firm belief that this report will not only provide you with all necessary information pertaining to the topic but will also cover all aspects and hopefully meet your expectations. Any information or queries regarding this report will be highly appreciated by our group members Sincerely, Faizan Shoaib (6268)

Iqra University
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TABLE OF CONTENTS
Particulars
Executive Summary Companys General overview The Organogram Business Overview & Product Line Strategic Planning Recruitment & Selection Method Training & Development Performance Management/Appraisal Compensation Retention Scheme Employees Turn Over Corporate Social Responsibility Conclusion & Recommendation

Page No.
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Iqra University
1. EXECUTIVE SUMMARY
This report reflects the HR systems, policies & procedures specially the HR perspective.

It shows that how HRM is helping HBL Bank in creating, maintaining and retrieving the information when required. It starts with companys general overview, the brief history, Values of HBL, the organogram, the challenges the product lines, Questionnaire and detail information regarding different automated systems used by them in taking timely decisions. The report consists of our best efforts which we did in gathering information regarding HRM at HBL Bank. This report elaborates the HBL is clearly the first choice of everyone who believes in qualitative approach of banking. It pertains environment of highly responsible workforce. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support. HBL is experiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. The management style is a kind of participative management in which employees are encouraged to share their ideas in decision making which enables bank to utilize knowledge, skills and abilities of its employees and meets its objective efficiently and being more innovative. As the motivation and reward system of HBL bank are also up to the expectation of employees so that employees are very much satisfied and it helps them to retain their valuable workforce. Ultimately the report projects that HBL inherits strong organizational culture having values for leaders as well as for employees and the organizational behavior is up to the mark for any company in Pakistan.

I.

History of Habib bank limited:

Allied Bank Limited of Pakistan was the first bank to be established in Pakistan. It started out in Lahore by the name Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited of Pakistan in 2005.

In August 2004 in Allied Bank Limited of Pakistan, because of capital reconstruction, the Banks ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today, with its existence of over many Years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking. The Bank also has the largest network of over 800 online branches of Allied Bank Limited of Pakistan and offers various technology-based products and services to its

diverse clientele.During 1991, the Government of Pakistan decided to privatize Allied Bank of Pakistan Limited.

COMPANY GENERAL OVERVIEW

I.

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.

II.

Vision & Mission:

Vision: Enable people to get advance with confidence and success Mission: To make our customers prosper, our staff excel and create value for
share holders

III.

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: 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.
a.

Excellence:

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.
b. c.

Integrity:

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.
d.

Meritocracy: HBL believes in giving opportunities and advantages to its

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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.
e.

Progressiveness:

IV.

HBL Culture: HBL has created a challenging environment that encourages

creativity and commitment. HBL focused on attracting, developing and retaining the best talent in the marketplace. HBL dynamic culture offers diverse growth opportunities across Pakistan and in 55 countries around the world. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, enable its employees to achieve their professional goals while keeping in synch with the banks overall objectives.

HBL ORGANORAM:

I.

Challenges faced by HBL: In prevalent society and keeping in view he spirit of other
competitors HBL is facing many challenges because it is the largest commercial bank, it has to be maintained its prestige and financial substantiality in the market. Therefore new products with new charm being launched in market to maintain the market share or to give the tough time to their competitors, and this would be the best challenge in the current era for HBL., and they really do work hard for it thats why Global Finance has awarded three prizes to Habib Bank Limited for the best performance of the year in the annual meeting of the World Bank. The seniors from all bank communities participated the meeting. The awards named as follows: HBL wins two global finance awards October 6th, 2010.

The best bank of Pakistan in December 6th, 2008 The trade finance provider Pakistan. The Chairman HBL, Sultan Ali Alana, Nouman Dar and Tarique Muteen received these awards respectively. The chairman stated that this wining is the proof of our best performance and customer service.

2. BUISNESS OVERVIEW:
I. INDIVIDUAL CUSTOMERS:
HBL caters to all market segments, offering products that are as diverse as the people we service. We remain resolute in our commitment to provide products that are competitive and services that are exemplary. HBL provides the following products and services to meet its individual customer requirements: i.
ii.

iii. iv. v.

Deposit Accounts Bank Assurance Debit Card Phone Banking Mutual Funds

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HBL offers a wide range of accounts suited to meet individual customer needs. They are:

Term Accounts:
Offered in a variety of tenors with deposits as low as Rs. 10,000.

Current Accounts:
Our Current Accounts offer features that meet your daily banking needs.

Saving Accounts:
HBL Saving Accounts cater to individual saving habits.

Foreign Currency Accounts:

Offer in multiple currencies with interest paid on a quarterly basis.

HBL and New Jubilee Life Insurance Company Limited (NJLI) introduce Amaan (Retirement Plan) and Tabeer (Child Education & Marriage). These products have been designed keeping HBLs customer base as the focus and will provide life insurance along with an investment option.

Amaan - Retirement Plan: A pension plan that offers attractive investment returns. Tabeer Children Education: An insurance plan that enables parents to cover
education and marriage costs.

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iii.

DEBIT CARD

HBL Visa Debit Card allows you to pay for your purchases directly from your bank account. You dont have to carry cash and your monthly statement provides you with a complete record of all your transactions. It has the following prominent features:
iv.

No Interest Ease & Security No Liability International Recognition& Acceptability Spending Limits Free Account Statement 24 hour Customer Service Global Customer Assistance Service

PHONE BANKING:

Your bank is just a phone call away. You can now call HBL Phone Banking and save a trip to the branch. Your query will be resolved in a single telephone call from anywhere and at any time.

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II.

BUSINESS CUSTOMERS:

HBL has a long history of being a partner of growth for business and Industry. We provide tailored banking solutions to business customers of all sizes in a wide range of industries. We cater to the needs of a broad spectrum of clients. The Corporate Banking Group focuses on personalized services to large corporate borrowers who need tailored facilities. The Corporate Bank manages a diverse portfolio, being an active player in a multitude of sectors including textiles, sugar, leather, pharmaceuticals, fertilizer, petrochemicals, power, aviation, automotive, telecom, oil and gas and FMCGs. The Investment Banking Group is a market leader. It provides innovative capital strategy solutions to major local and multinational entities. HBL offers a wide range of products and services for its business customers. Which are as follows: Commercial Banking Corporate Banking Islamic Banking Investment Banking Cash Management Asset Management

Services
HBL provides the following services to meet customer funding requirements:

Working Capital Finance, including Overdraft, FE Loans etc. Pre and Post Shipment Export Financing (PKR and USD based) Import Financing (PKR and USD based) LMM Funding Receivable Discounting Islamic Banking facilities Cash Management Services Trade Services including Letter of Credit, Letter of Guarantee and Standby Letter of Credit etc.

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HBLs Commercial Banking Group targets medium sized companies with a turnover of at least PKR 50 million.

Services
HLB offers financing for the following: Working Capital Procurement of Inventory Receivables Procurement of Machinery Expansion of production facilities Import of raw materials Exports Guarantees

HBL offers full-service Investment Banking capabilities to its clientele. The Investment Banking Group functions in three specialist business areas:

Project Finance, Debt Capital Markets & Syndications and Equity Capital Markets & Advisory.

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ISLAMIC BANKING

At HBL, Islamic Banking offers Shariah compliant products and services to meet the short and long term requirements of business and trade. Islamic Banking provides Ijarah (leasing) for vehicles, plants and Machinery to meet long-term customer resource requirements. Murabaha (local & import) facilities are provided to meet the short-term financial needs of mid-market and corporate customers. HBLs Islamic Banking products are fully Shariah compliant and duly certified by independent Shariah Advisors.

CASH MANAGEMENT

HBL offers a comprehensive platform for customers to avail Cash Management Services throughout Pakistan. Our Cash Management Services reduce the cash turnaround of your company, thereby making it cost efficient.

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HBLs Agriculture loans are spread across the country and provide financing through over 800 branches. We have the largest private bank portfolio in the country with over PKR 18 billion in various agriculture sectors. HBLs presence in all agriculture belts of the country ensures easy access to farmers in rural areas. We provide loans to small-scale land owning farmers as well as large Institutionalized and alliance based financing to boost the country's economy and yield better harvests. HBL enables farmers to buy good quality seeds, fertilizers, pesticides, agricultural implements and nonfarm setups through its various product programs.

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Habib Bank Ltd

Human Resource Department

Human Resource Group

Human Resource Head - Global Operations Group

Human Resource Regional Head Quarters

Branches

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HR ROLE:
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.

HR STRATEGY:
The Human Resources (HR) Strategy sets out plans to ensure the recruitment, development and retention of the best quality staff in all staff groups, in order to fulfill the organization's Mission and thereby meet its strategic aims and objectives.

STRATEGIC PLANNING OF HBL:

HBL uses two types of Corporate-level strategies: 1. Diversification strategy 2. Geographic expansion strategy 1. 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.

2. 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

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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: HBL 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.

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 questions.

Questionnaires: In questionnaire the employees solve the fill out questionnaires to describe
their job-related 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 is called quantitative job analysis techniques.

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a) The position analysis questionnaire (PAQ): A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs. b) 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.

Man Power Planning & Budgeting:

Man power must be according to the required skill of organization. We need skilled / experienced staff for HBL regarding HR Management, Staffing, and Resourcing. Yearly budgeting for man power is essential in the light of acquired profit, because sharing of employees in profit is complementary to their hard efforts and selfless dedication. At the end of every year every department provide their next year human requirement to their regional head. When any of our department required people urgently we first tried to full fill this requirement internally through different department or branches. If internally people are not available then we go to external hiring.

RECRUITMENT AND SELECTION:

Recruitment is the process to induct the right people, with the right skills, in the right place at the right time. This aspect of HR job is crucial for attainment of organizational objectives. HABIB BANK achieves these objectives in three ways:

By inducting substantial numbers of fresh graduates every year under the Management Trainee Officers, Operations Officers, Cash Officers and Sales Officers batches. By systematically inducting experienced bankers as and when needed, through a centralized recruitment system, using the Banks Recruitment Portal, advertising in papers and using head hunters for senior positions. By implementing appropriate selection tests and interviews at junior levels, and psychometric testing and panel interviews at senior levels.

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Hiring Methods:
HBL uses outside sources for recruitment which are:

Advertising
o Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc) o Trade and professional journals (Aurora Magazine)

Outside sources of candidates

o o o o Sidat Hyder Morched Association works for outsourcing for HBL. College recruitment Employee referrals Walk-ins

Finding internal candidates:

o Job Posting o Rehiring former employees

HBL Selection Process:

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.

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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.

a) Identify candidates:
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 dif 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.

b) Test/ interview:
In this process short listed candidates are called for test and interview according to nature of their applied jobs.

c) 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.

Formats used in selection interview:

i. ii. Structured/Directed Unstructured/Non directed

Types of questions: Situational: A series of job-related questions that focus on how the candidate would behave in a given
situation.

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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 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: Intelligence Tests:

i.

Tests of general intellectual abilities that measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability are intelligence tests.

ii.

Aptitude tests:

Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability are aptitude tests.

HBL Recruitment Process:

HBL adopts recruitment process as: Entry level programs Experienced professionals Campus recruitment Rehiring

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

2. 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.

3. 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.

4. 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.

5. Final Selection:
After going trough all the processes the best candidates according to HBLs selection boards are selected. Print Medias like newspapers and internet.

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TRAINING & DEVELOPMENT AT HBL

.
Training and development -- or "learning and development" as many refer to it now -- is one of the most important aspects to our lives and our work. In our culture, we highly value learning. Yet, despite our having attended many years of schooling, many of us have no idea how to carefully design an approach to training and development. Many people believe that traditional views of training, for example, to enhance learning (knowledge, skills and abilities of individuals) is not enough -- that training and learning must be more closely aligned to achieving the goals of the organization. Simply put, Human Performance Technology (HPT) uses instructional technologies to improve the performance of individuals, especially regarding organizational performance (effective and efficient achievement of organizational goals).

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: On-the-job Training Off-the-job Training Apprenticeship Training

Informal learning Effective lectures

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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.

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: 1. Case study method 2. 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

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employee gets authentic knowledge about the new horizons of banking sector which is useful for HBL and makes it leading bank in Pakistan.

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.

Apprenticeship Training:

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

Informal Learning:

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.

Effective Lectures:

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PERFORMANCE MANAGEMENT/APPRAISAL AT HBL

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 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 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 Forms 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: ABCDEProductivity Individual \attributes Technology Customer Service Personal

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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: a) Direct payments b) Indirect payments
a)

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

b)

Indirect financial payments: This mode of payment is not related to cash payments like
medical, insurance, residence, car, car fuel etc.

SALARY AND COMPENSATION

Officers are paid from 15000 to 25,000 they continue their services at operations side. If an employee is switching from another company, his/her salary decided through negotiation 10% to 12% annual increase for all employees Performance based increments and bonuses are variable for each employee and decided by immediate manger and HR Department

Grade Structure in HBL

Chief Executive Officer Senior Vice President Vice President I Vice President II Assistant Vice President Manager Assistant Manager Senior Officer Officers

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Contractual

BENEFIT STRUCTURE:

Bonus (on performance) PF (10% of basic) Gratuity (on completion of 3 years 1 basic per annum) Phase bonus (yearly bonuses on performance ) General life insurance till (5 million) Corporate club membership (for SVPs and VPs)

MEDICAL FACILITIES:
HBL provides medical facilities to its employees and his \her family. HBL pays hospital bills on behalf of its employees.

Loan Facilities for Employee:

Home financing: 45% of basic salary Car loan is provided at 4% Personal Education: Should be job relevance (get reimburse after completion)

LEAVE ENTITLEMENT:
Leaves (total 30 leaves) Including 5 CLs 25PLs Maternity leaves 72 Haj leaves Emergency leaves

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RETENTION SCHEMES AT HBL

Following are the examples of retention schemes at HBL

Celebrating success
Events to recognize high achievers Top performers celebration Wall of fame, Employee of the Year Employee of the month Employee of the week

Team Building initiatives

Cross functional & diversified teams - Involving both experienced & new employees.

Performance based Rewards

Annual incentives for exceptional performers for displaying excellence

Spot rewards
Monetary awards Given on exceptional achievement

Fast Track Promotions

Quick Promotions

Market adjustments
Structured process Market based salary adjustments twice a year

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THINGS HBL IS DOING DIFFERENTLY

Internal Job Postings Career progression plan Mentor Mentee program Cultural Transformational initiatives Self & professional development through trainings

EMPLOYEE TURNOVER AT HBL

HBL bank employee turnover as compared to banking industry is 7-8% in 2009 however in 2008 & 2009 the turnover was 10% & 15% respectively.

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CORPORATE SOCIAL RESPONSIBILITY AT HBL

Corporate social responsibility is managerial obligation to take actions that protects the welfare of society. HBL international branches particularly their subsidiary in the UK was instrumental in mobilizing substantial funds from generous donors to the presidents relief funds. HBL has sports division. It has provided jobs to players as a social responsibility so the players in the field of cricket tennis football, badminton may achieve desired goals of nation. HBL flexi loans can help finance your Children schooling paying the way for their secure & prosperous future.

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CONCLUSION
HBL is clearly the first choice of everyone who believes in qualitative approach of banking. It pertains environment of highly responsible workforce. Bank is enjoying a healthy market share and taste of good status in terms of its operative features and customer support.HBL is experiencing a good reputation and reasonable mark up with respect to prevailing market mark up with assurance of satisfaction and support. HBL bank management is competent enough to set the strategies in order to compete their competitors and attract more customers. The management style is a kind of participative management in which employees are encouraged to share their ideas in decision making which enables bank to utilize knowledge, skills and abilities of its employees and meets its objective efficiently and being more innovative. As the motivation and reward system of HBL bank are also up to the expectation of employees so that employees are very much satisfied and it helps them to retain their valuable workforce. Overall we concluded HBL inherits strong organizational culture having values for leaders as well as for employees and the organizational behavior is up to the mark for any company in Pakistan.

RECOMMENDATION:
Pay should be adjusted according to inflationary rate to retain employees. Growth opportunities should be provided to enhance their expertise. There is no proper job rotation in HBL. The medical allowances should be provided to parents also. Training should be provided to middle level management. All over employee in HBL needs continuous motivation and encouragement. They should follow performance based growth in fair manners. The education assistance program should be given to employees (2 children education fees must be given). In home and car financing HBL charge 4% with employees it should be 0%.

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