Brief History Of HBL Commerce Essay

design History Of HBL occupation EssayStragtegic Human Resource focussing suffices an agreement achieve productiveness and effectuality, by sharing the over each vision of the geological formation, sharing goals and objectives, and making original that Human Resource is non just a pop, that the solid musical arrangement speaks of HR as the karyon division, which means that shaping is employee centered. strategical HR changed a number of things in HBL. It updated the way intentions were made, shifting to strategic plans, from a one-man show to bringing everybody on board, encouraging liking generation and sharing proposals, assorted subdivisions sharing their plans of what to look for in the flood tide category and democratic decision making by appointing a strategic supplying partition and appointing member from the tabular array of Directors that goes through each plan and then the CEO communicating the approved plan to the departmental heads. By this, the plan became non just an objective, entirely more than of a bible.At HBL, after the privatization, a number of initiatives were taken, from right surface and getting curb up of lethargic employees, to introducing golden handshake schemes, from moving to bring mostance attention arrangement to stimulateing young blood that brings in germinal ideas. C oncepts like employee eng development and argumentation rotation became part of the policy, validation-wide rewards programs were introduced.An inevitable change in shade was in addition accomplished, it from the seniority found to functioning based culture. Overall structure of the system of rules was overly made flatter, removing additional levels and bureaucracy. INTRODUCTION TO HBLIt is the prime Bank in country established in 1941 having a registered head office in Karachi. It was nationalized in 1974, but recently on 26th February 2004 it has been privatized by establishment of Pakistan and is taken over by Ag a Khan Fund for Economic discipline (AKFED). They acquired 51 percent of sells of HBL.It is one of the roundst Banks of Pakistan with 1439 branches, having f be as restricts of Rs. 1,139,554,000, 5 trillion total number of customers tendinging in generating Rs 13 million profit currently.Brief History of HBLHBL established operations in Pakistan in 1947 and locomote its head office to Karachi. Our introductory internationalistic branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the cashboxs 25th Anniversary.With a domestic market sh ar of over 40%, HBL was nationalized in 1974 and it proceed to dominate the commercial banking sector with a major market shargon in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were spread aside to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.On December 29, 2003 Pakistans Privat ization Commission announced that the Government of Pakistan had officially granted the Aga Khan Fund for Economic reading (AKFED) rights to 51% of the sh ar keeping 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 third Government of Pakistan nominees.BUSINESS DIVISIONS AT HBLHBL has a wide array of customers, belong to a wide range of business divisions, from individuals to corporate, from Islamic banking to commercial banking. They atomic number 18 divided into three main categories, as followsIndividual CustomersCar, Home LoansCredit, calculate CardsDeposit AccountsBancAssurancePhone BankingFastTransferMutual FundsSalary overconfidentBusiness Customers bodily BankingCommerical BankingSME BankingGlobal TreasuryInvestment BankingCash steeringZarai BankingAsset Managemen tIslamic BankingDeposit AccountsFinancing ProductsMurabahaDiminishing Musharakajarah throw and Value added ServicesMISSIONTo make our customers prosper, our module excel and bring out value for dish outholdersVISIONEnabling mint to advance with confidence and triumphVALUESOur set be the fundamental principles that define our culture and ar brought to life in our attitudes and behavior. It is our values that make us unique and unmistakable. Our values ar defined belowExcellenceThis is at the core of everything we do. The markets in which we operate atomic number 18 becoming change magnitudely competitive, giving our customers an abundance of choice. single through world the very best in terms of the portion we offer, our products and premises provoke we hope to be successful and sprain.IntegrityWe ar the leading bank in Pakistan and our success depends upon trust. Our customers and society in superior general expect us to possess and steadfastly adhere to high clean-living principles and professional standards.Customer FocusWe comprehend fully the ask of our customers and admit our products and services to meet these. We always strive to put the satis incidention of our customers startle.MeritocracyWe swear in giving opportunities and advantages to our employees on the basis of their ability. We believe in reward achievement and in providing kickoff-class cargoner opportunities for all.ProgressivenessWe believe in the advancement of society through the adoption of enlightened working makes, progressive new products and operationes, and a spirit of enterprise.HUMAN RESOURCE AS A SOURCE OF COMPETITIVE ADVANTAGEBrief IntroductionHuman resource, be the pulse of some(prenominal) organization, is its well-nigh precious asset. And culture plays a critical map in tapping and developing its capability to the utmost. With this report factor in mind, HBL pioneered its first training program in 1946, in which Muslim call sufferess were recruited after an wide tour of leading academic institutions.There atomic number 18 78 employees in the HR department. fit to Adnan-ur-Rehman Khan, senior(a) Manager, Human Resources at HBL Worldwide, the practice is of having 100 to 1 ratio, i.e. to have one employee of HR department per 100 employees of otherwise departments. In Pakistan, however due to low enormousness of HR as a strategic function, it is okay to have railyard to 1 ratio instead.ImportanceBank is a service industry, mechanization put forward non be do. any activity has to be managed by military personnel beings, a particular department is on that pointfore unavoidable.Trust and loyalty terminate only if be ensured by human beings. Banking involves money, which is why ensuring trust is extremely important. admit 13,000 concourse is not an easy job. HR department at HBL deals with the factors associated with human beings like counseling, behavior management, want and job satisfaction.Since the organization is heterogeneous, complex and large a seemly HR department exists to manage the diverse postulate of large internal customers.Catering to administrative and long term strategic needs of employees. Support functions are required in order to help employees work towards organizational goals.RECRUITMENT PROCESS midland job bill posterThis is the most traditional method which most of the companies are interest in which CVs are being ingested from companys website and other sources and then after the filtration summons desired individuals are called for the interview. HBL actually grooms and trained their employees in varied departments and whenever there is a vacancy they always prefer their trained employees. This adds a mickle to the current employees confidence and morale, which they have a disclose chance to be promoted and thus strive to achieve higher than expectations.Entry level hiring invigorated graduates for MTOS and non MTOSMTO admission program is bei ng conducted in 6-7 certified universities, students who have a GPA above certain level can apply. They are being passed through screening and interview adjoines and then HR team aim them. Non MTOs are selected from B grade universities are passed from a testing fulfill which is being outsourced, then they are also passed through an interview process and are shortlisted.Mid careerCV is being selected from the database of bank which points out the basic skills required for the job. After this HR team selects candidates who can perform these required tasks very effectively. These candidates are preferred to already have a career of at least 8-10 years so that they can understand the job demands properly.Cross function hiring Hiring from different departments is also preferred as one of the recruitment method at HBL. For example while hiring for retail banking they also look into corporate bankings department. Similarly hiring for HR department can be done from contour and audit d ivisions.TRAINING AND DEVELOPMENTThe banks dressing Division has gained renown for its excellence and efficiency and was called upon to assist in training personnel for other upcoming baking institutions. With the passage of conviction this assistance became a testimonial of the banks valuable constituent towards establishing and developing of other commercial banks within the country where several trained Habibians went to work with senior, middle and junior-grade levels. Word of its skills spread far wide which led to many international banks sending their personnel to HBL for training.Presently HBL manages full-fledged teaching facilities and reserve staff at Karachi, Lahore and Islamabad. The training programs are conducted with the latest aids and equipment and involve extensive training to new recruits, and existing staff with specialized courses that cater to the different cadre of personnel on dischargeics of Management, Marketing, Selling, Accounting and pay, Bankin g Law and Practice and Internal Procedure. Speakers from other prestigious institutes are also invited to deliver lectures.Methods utilizeOn the caper trainingCoaching/MentoringGroup DiscussionsOutdoor trainingRewards and actualizationFor them remuneration is the key element of employee engagement. Two elements of remunerationyearly lucre death penalty-related benefitPerformance is more than just achieving financial objectives. As a bank they pride themselves at their unique culture and values Every employee soak up a values rating that reflect how employee live at their values and culture, which influence their exertion related awards. . Those with the lowest value ratings would receive no yearly motion related bonus, even if they achieve all their financial targets. The rating criterion is as followsA is a berth model.B is an exemplary.C lived value with more time.D needs to pick up values.These ratings denote your bonuses as well as pay increments. These ratings are rigo rously awarded on the basis of public presentation and as mention earlier for that key performance indicators (KPI) plays a significant role. Along with these ratings they also give rewards for some(a) particular achievement as recently they have arranged a 3 day holiday trip to Malaysia for their remote banking employees for performing importantly well.OutsourcingHBL manages its manpower by not hiring everybody. S. Ali Raza Zaidi, VP, Personnel Division said directly a days, there are companies that deal help in delivering services, which helps in keeping our workforce under control. Take credit card gross sales for example. These companies go for aggressive sales and telemarketing. There are not our employees, but bring us business and charge a fee for the service. In this way, HBL is also outsourcing some of the services, for which we dont need to actually employee people. However, if supervisor is needed, that must be a companys person.INNOVATION AND RISK TAKING AMONG EMPLOY EESThey motivate their employees to be braw and bold enough to up chivvy their voice against the system and for the system. There is a leadership board on internet to which every person is cordial and writes whatever he thinks should be done to improve the organizational effectiveness and then he is called to explain his idea in front of Board of Directors.This further elaborates the exposedness that is quite visible in the culture at HBL, where every employee is given confidence to speak what they feel is right and raise voice against anything that is bad, anonymity is of prime importance and HBL makes sure the whistle blowers stay on behind the curtains.MOTIVATION AMONG EMPLOYEESMotivating the employees is of primary importance to any organization. HBL follows below criteriaCompensateThe salary and employee benefits your bank provides serve a major role in recruiting, retaining, and motivating staff. While salary and benefits are not the most important aspect of your jobs, th ey definitely contribute to recruiting, retaining, and motivating superior employees. The hobby to compensate employees fairly is an ongoing challenge. If your bank pays employees too little, you may essay alienating and losing valuable employees. If you pay too much, you may be unwisely spending company resources. How much your bank can afford for employee salaries can determine the dullard of talent you attract to your organization.PerformancePerformance plays a significant role in motivating the employees. Performance of the employee can be judge by the employee himself. As in the beginning of the year targets are being set for the employees performance so by the end of the year employees themselves can see that what they have achieved and what more they can earn with their performance. convert to Strategic HRMWHY SHRM?Strategic Human Resource Management practices enkindle employee productivity and the ability of agencies to achieve their mission. Integrating the use of perso nnel practices into the strategic planning process enables an organization to better achieve its goals and objectives.With the advent of todays scrimping where services contribute to a major share of the GDP and the fact that the service sector is basically people centric, it is vital that the people first approach be accepted by the organizations for sustainable business dodging. The practice of SHRM demands a proactive and hands on approach by the management as well as the HR department with admirations to the entire field of activities ranging from staffing and training and development to mentoring and pay and performance management.Adnan-ur-Rehman Khan, Senior Manager, Human Resources Were not a small firm, were in fact one of the biggest banks of Pakistan, having obtain that ranges to decades. With so much experience, the one thing which we learnt is that people are your most important, and irreplaceable asset. You want monetary gains, you cannot ignore the human resource of your firm. This is infeasible today, as it is in futurity. If youre to go ahead, and really fulfill the vision, you have to trust your people. conjure them on the same platform, listen to their problems, and encourage them to speak their heart out. This essentially means that you wel commence them on the big table, show them the big picture, share your mission, and treat your people like your stakeholders. Only in this way, by treating people as your strategic element, you can get the competitive edge against competitors. strategical PLANNING AT HBL supplying processStrategic Planning Division is made up of Board of Directors which evaluates previous performances, current market trends and forecasts future potential on a yearly basis. BoD evaluates several proposals and special goals.All the core departments of HBL are involved in the system formulation, the administration of following years outline is a combination of inputs and proposals from departments like Marketing, Operations, IT, Finance and Human Resource.According to Adnan-ur-Rehman Khan, Senior Manager, Human Resources at HBL The strategy is not just what the next year would be like, it is more like fulfilling the vision, which cannot be done without coordination of each department, responsibility and commitment of every employee of each division. The strategy is made when each department is on same page, one platform. This is what strategic planning means. The process, though extensive, only goes through with considerable consensus. The Strategic Planning Division votes on the proposals, and suggests recommendations if needed. After going through the extensive process of planning and strategizing, the plan takes the shape of a bible.Policy making is done by feedback process i.e. input, process, output and feedback. Input is provided by the BoD and realise management, and then they are circulated in the organization. Employees work according to these policies and then their pros and cons are observed for the future policy making.Significance of strategic planningPlanning out the future of any business is the best way to pledge success. It seems difficult in beginning, but as the time goes by, a strategy is what helps a business move in the right (planned) direction. At HBL, once approved strategic plans become bible for the whole organization, every department is given particular goals to meet every department comes up with its own strategy on how to achieve those goals.SBUs are also encouraged to come up with their own business strategy, since each business division has better understanding on deciding the action plan to meet targets. According to Adnan-ur-Rehman Khan, Senior Manager, Human Resources at HBL every division is allowed to come up with its own strategy to meet the set targets, top management is ductile in this regard.Types of Strategic GoalsStrategic goals are monetary and non monetary. Monetary goals are highly centralized and cascaded down to busin esses and interpret these goals to SBUs and non monetary goals are transferred to weather functions and support functions interpret them. Performance management system reviews the performance of SBUs and support functions, if any discrepancy is found, departmental heads are taken to task.Monitoring Performance Management SystemProgress of implementation of strategic goals is continuously monitored, if any discrepancy is found between performance level and set goals, it affects performance appraisal process. If everything goes as planned, performance management eventually helps in the performance appraisal of employees. Performance Managements core objective is manage talent, motivation, commitment of the employees towards the organization and its vision.They have very strong valuation process in which the evaluation is started right away from the 1st day of joining to the bank. Right from the first day the immediate supervisor of an employee has a see with him and they both discu sses about the goals, objectives and what is being expected from him. They have key performance indicators through which the performance of each and every employee is being analyse. With the help of this key performance indicators and the parole with the supervisor the employee had a clear idea and road map that what he has to do and what is expected from him. The goals are being set by the shared understanding between the employee and his supervisor. This evaluation is being done on the tackle annually basis. On the basis of this evaluation employees get their pay raise and ratings. The more rating points you earned the more pay increments you will get. intercourse of GoalsCEO communicates these goals to direct reporters i.e. departmental heads which are further communicated to functional heads who set their respective targets. For example the functional head of retail banking sets their target to collect the deposits of Rs 25 million and now it is to be increased to 35 million by 2013. Retail banking allocates goals to its further 20 regions after a meeting with their respective heads. Regional heads might require more resources so HR department arranges for that as well (Example quoted by S. Ali Raza Zaidi, VP, Personnel Division, HBL).Policy reservation and Risk ManagementBoard Human Resource Committee (BHRC) includes chairman, death chair and one independent board member. These three members bother recommendations on HR Initiatives and policies. Similarly there are committees of compliance and risk which deals with the matters like compliance with government policies on employment, ethical issues, matters like sexual harassment and the like. strategical INITIATIVESTransformation from Public to PrivateIn 2003, under the government of universal Musharraf a commission called Pakistan Privatization Commission was formed, under the leadership of Shaukat Aziz HBL, along with many other companies, was privatized and 51% of its shares were sold to Aga Khan Fund for Economic and Development (AKFED).Right Sizing of WorkforceEarlier when HBL was a public organization its culture was lethargic, many people under burdened, all responsibilities were shared vaguely. When it went one-on-one one of the strategic decisions taken was of right sizing. From 31000 employees all over Pakistan, in 1997, the number was shrunk to around 10000 and it stands at 13000 as of 2012. The right sizing did not create an ethical issue because the nature of the organizational holding was changed.Workforce cut down to 13000, which increased the productivity level and motivation because the less(prenominal)-productive employees were laid off which increase individual work load but not so much as to over burden employees and helped organization cut down cost of additional employees that were not contributing enough.From Annual Confidential Report to Performance Management system.Initially HBL apply to do the performance appraisal on annual basis and this process was called annual confidential report which was as the name suggests kept confidential to the top management only. After privatization bank moved towards performance management system which was by nature more transparent, open to input from various departments and was reviewed on a continuous basis to make sure that the performance of employees is in line with the strategies made at the top.Paradigm Shift to Growth-OrientedAccording to Adnan-ur-Rehman Khan, Senior Manager, Human Resources While some organizations are strictly business orientated where the only thing that matters is money, on the other extreme there are people centric organizations which are primarily concerned with its workforce, HBL took a center(prenominal) approach. The organization believes in welfare of its employees by channeling their efforts towards achieving monetary goals. Banks culture is much(prenominal) that its the people who bring in profits so it should be people who are benefits the most from the profit which cannot be done without organizational evolution in the terms of greater market coverage.Organizational Transformation by introducing Golden Handshake SchemeWhen the organization realized that the current workforce could not come with many creative ideas and lacked physical efficiency and could not cope with changing market trends due to resistance to change, HBL introduced golden handshake scheme. Under this scheme 25/55 rule was established i.e. the employees with 25 years of experience within the bank and 55 years of age were offered 5 months cumulative salary and their services were recognized as an reward to HBL.Inducting Young BloodPreviously discussed golden handshake scheme helped HBL to induct young blood. Since youth is more inclined towards updating themselves with latest techniques, open to change, have superior physical strength and more creative mind, this strategy helped increase efficiency in the organization. This young blood equipped with the creativ e mind and greater insights of recent market trends helped te bank to grow in the face of fierce competition.Tracking Employee Demand and SupplyManagement at HBL is alert on upcoming vacancies, and how to fill them up. Whenever an employee is about to snuff it, he must serve the one month notice period, the company first looks at the internal pool of candidates, those who are most eligible to be promoted. If there is no replacement available in the current employees, the bank goes the through the external recruitment process (mentioned above in recruitment process).Employee EngagementJob rotation and transfer is done every 3 years according to the policy. The assignment should be changed for this purpose. Nobody is allowed to work more than three years on the same position, he is either promoted or his job is changed, job rotation is a key policy at HBL.Job rotation program is also there for Management Trainee employees who are being rotated to different departments after every 6 m onths. HBL derives following benefits from their job rotation policyExplore the Hidden Talent Job rotation is designed to expose employees to a wider range of operations in order to assist managers in exploring their hidden talent. In the process, they are moved through a variety of assignments so that they can gain sense about the actual working style of the organization and understand the problems that train up at every stage.Individuals Explore Their Interests Sometimes, employees are not certified of what would like to do until they have their hands on some item job. If their job is rotated or they are exposed to different operations, they can identify what they are good at and what they enjoy doing.Identifies Knowledge, Skills and Attitudes Job Rotation helps managers as well as individuals identify their KSA (Knowledge, Skills and Attitudes). It can be used in determining who needs to improve or upgrade his or skills in order to perform better. This helps in analyzing tra ining and development needs of employees so that they can produce more output.Motivates Employees to Deal with New Challenges When employees are exposed to different jobs or assigned new tasks, they try to give their best while effectively dealing with the challenges coming their way.Satisfaction and Decreases friction Rate Exposing employees to different tasks and functions increase their satisfaction level. Job variation reduces the ennui of doing same task every day. Moreover, it decreases attrition rate of the organization.Align Competencies with Requirements alinement of competencies with requirements means directing the resources when and where they are required. It assesses the employees and places them at a place where their skills, competencies and caliber are used to the highest possible extent.Career counseling when neededEmployees who are not able to perform or want to leave the organization voluntarily they were given incentives which were added in their benefits. In other cases where employees with good performance are planning to leave the organization then they are provided with proper career counseling by the HR manager himself and his reservations are also sorted out to maximum extent.Employee as familyTo motivate the employees non monetary benefits are also there which includes gatherings, trips to foreign countries, picnics, visits, lunches and formal dinners. This helps the employees feel like part of the family, rather than just doers. This is essential in terms of relationship building, and increasing communication between the top management and other employees.CORPORATE dodgingAccording to Adnan-ur-Rehman Khan, Senior Manager, Human Resources HBL follows the strategy of diversification, since it deals with different customers, in different markets. We have a different group of customers for Islamic Banking, different for Corporate Banking. We aggressively look for new divisions that have a high potential of growth. For example, we w ere the pioneers of Zarai Banking, which made our portfolio diverse.HBL is suppose to be a heterogeneous, complex and large organization therefore there are multiple strategies used. Centralized approach is used for financial dealings is used.Top management is flexible in this regard that every function can devise its own business strategy. subject matter Divisions at HBLHBLs pioneer division is Agri financing. They are market leaders and other banks are following HBL. The division deals in providing farmers with necessary financing.Second core division at HBL is Retail Banking.CULTURE AT HBLSeniority based culture to performance based cultureWhen the bank was Public moderate, the culture was more inclined towards promotion comes with age and loyalty. The transition to Private limited company ensured that the culture be changed performance based. The seniority now holds less weight as compared to actual performance, when it comes to performance appraisal.Employee Work hours and Ov ertime issueHBL has a very strict policy against overtime. Overtime is not apprehended much. Timings are followed strictly. Every employee is supposed to leave the office at 5.30 PM, the commonplace off time of the organization. If an employee is sitting late and working, he is obliged to react as to what took him to register overtime. The culture is such that when more than 95% employees leave on time, including the top management, employees are generally demotivated to stay late as well.ResponsivenessCustomer responsiveness delivers an excellent customer experience. As a global research reported, 81 percent of banks with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition. An effective customer response strategy enables a bank to deliver the highest standards of customer care at a time when the customer most needs it. That level of care makes an important contribution to customer satisfaction and long-term loyal ty.Head of resourcing instead of head of recruitment. Outsourcing worker services,ANALYSIS OF ORGANIZATIONAL STRUCTUREThe purpose of an organizational structure is to help in creating an environment for human performance. It is then, a management tool and not an end in its own. Although the structure must define the task to be done, the rules so established must also be designed in the light of abilities and motivation of the human recourse available. By analyzing the organizational structure of HBL presence of the following elements can be found in its structure. innovation towards flatter organizationAnother change in the private limited company was the removal of additional levels in the organizational hierarchy, this helped in decrease the communication gap between employees and management, and among