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ACKNOWLEDGEMENTS
The authors have been blessed by considerable assistance from many people on all aspects of preparation of this project and its supplements. We are, of course, responsible for what eventually appears between the covers, but the insights, corrections, contributions, and prodding’s of others have greatly improved our manuscript. The people we recognize here all have a strong commitment to students, to the IS field, and to excellence. Their contributions have stimulated us, and frequently rejuvenated us during periods of waning energy for this project.
We would like to recognize the efforts of the many faculty and practicing systems analysis who have been reviewers of the several drafts of our manuscript. We have tried to deal with each reviewer comment, and although we did not always agree with specific points, all reviews made us stop and think carefully about what and how we were writing. The reviewers were:
Finally, we have been fortunate to work with a large number of creative and insightful people at AGRICULTURE UNIVERSITY and HABIB BANK LTD, who have added much to the development, format, and production of this project. We have been thoroughly impressed with their commitment to this text and to the IS education market.
These people include: KHURAM SHEHZAD, Vice Chancellor (Agriculture University OF FAISALABAD), MISS. TASNEEM (project manager management sciences) and Mr. MUHAMMAD ALI SHAH, Human Resource Manager (HABIB BANK LTD, Faisalabad).
The writing of this text has involved thousands of hours of time from the authors and from all of the people listed above. Although our names will be visible associated with this project, we know that much credit goes to individuals and organizations listed here for any success this project might achieve. It is important for the reader to recognize all the individuals and organizations who have been committed to the preparation and production of this project.
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MISS. TASNEEM
Project Manger
AGRICULTURE UNIVERISY FAISALABAD.
Madam,
We present to you this information of HABIB
BANK LTD, as part of our course, for the project. We
would like to thank you for giving us an opportunity to
practically implement our knowledge. We present to
you all the information about organization. Kindly
overlook any mistake and also correct these mistakes
that we may have made in this project.
Thanking you.
Yours sincerely,
Mohsin Ali Sabir
Zeshan khawar
Farhat Gafhoor
Komal yousaf
Uzma Aziz
Sadia Tabassum
Moomna Shahzad
M.B.A 3rd SEMESTER
University Of Agriculture
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WE DEDICATE THIS HUMBLE EFFORTS
TO
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OUR LOVING PARENTS AND
OUR GREAT TEACHERS
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History
HBL established operations in Pakistan in 1947 and moved its head
office to Karachi. Our 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
Aga 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.
ALL ABOUT
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HABIB BANK LTD.
HBL was the first commercial bank to be established in Pakistan in
1947. Over the years, HBL has grown its branch network and become the
largest
private sector bank with over 1,450 branches across the country and a
customer base exceeding five million relationships. With a presence in 25
countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria,
Kenya and Kyrgyztan and representative offices in Iran and China, HBL is also
the largest domestic multinational. The Bank is expanding its presence in
principal international markets including the UK, UAE, South and Central Asia,
Africa and the Far East.
Key areas of operations encompass product offerings and services in
Retail Banking. HBL has the largest Corporate Banking portfolio in Pakistan
with an active Investment Banking arm. SME and Agriculture lending
programmers and banking services are offered in urban and rural centers. In
the UK and GCC, HBL focuses on trade finance and remittances for the South
Asian diasporas in addition to basic banking facilities.
HBL has always been a bank and a brand for the masses, with a history
that is inextricably linked with the history of Pakistan itself. As it continues to
grow, both locally and abroad, it strives to embody its brand personality:
honest, approachable, inclusive.
HBL is currently rated AA+ (Long term) and A1+ (Short term)*. It is the first
Pakistani bank to raise Tier II Capital from external sources.
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OUR VISION:“Enabling people to advance with confidence and success.”
OUR MISSION:
“To make our customers prosper, our staff excel and create value for shareholders.”
OUR VALUES:
“Our values are the fundamental principles that define our culture and are
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brought to life in our attitude and behaviors. It is these values that make us unique and unmistakable.”
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CORPORATE STRATEGIES IN HBL
Strategic Path:-
From the very beginning the main focus of
the management of HBL is the implementation of growth
strategies. During the entire period of continuous straggle they
adapted almost all types of strategies according to situation and
market demand of that time except restructuring of defensive
strategies. HBL never faced any type of liquidation, bankruptcy,
sale or removal of any business unit. Their main strength is to
avoid unsecure financing. It is big organization that ever during
their dark periods of straggle; they never lose their market share.
If we talk about GROWTH STRATEGIES they are as followed
Incremental Growth:-
HBL’s key areas of operations
encompass product offering and services in retail and consumer
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banking. They introduce their products to expand their client’s
base by bringing innovation and improving the channels of
distribution. They put their all efforts to reduce the business and
make their services accessible for all customers.
International Growth:-
With a presence in 25 countries
subsidiaries in Hong Kong and the Uk, affiliates in Nepal, Nigeria,
Kenya and Kyrgyzstan. Representation offices in Iran and China.
HBL is also the largest domestic multinational. The bank is
expanding its presence in principal international markets
including the UK, UAE, SOUTH AND CENTRAL ASIA, AFRICA and
the far EAST.
Merger:-
HBL merged “ Standard Bank” in earlier times
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BUSINESS STRATEGIES
“Models of Business Strategies”
Buston Consulting Group Model: BCG
HBL is found in the upper left-hand quadrant of BCG matrix. It
offers excellent profit and growth opportunities. It can generate
enough cash to fund its own expenses. Sometime only National
Bank in Pakistan Creates Problem for HBL but overall it is
dominant.
Miles & Snow:
HBL is a combination of Defender & Prospector
Analyzer. It is having stable and predictable environment and
pursues low- cost opposition, focusing on efficiency through
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standardized jobs, formalization and centralization. Environment
of HBL is dynamic they focus on innovation & adaptation. They
prefer to invest in R & D and marketing to advertise their
products either through TV ads or some others sources.
Porter’s model:
If we talk about HBL in porters perspective, they are
implementing
“BEST-COST PROVIDER STRATEGY”
They give their customer more value for the money they are
spending to satisfy them in a props way. They focus on
innovation as well as low cost.
Its is also because they believe if they facilitate their customers,
ultimately will get return in future.
HBL’s products cover all the customers belonging from various
classes. A salaried person having 3 to 5000 and rich industrialist
are entertained equally in HBL.
Intensive Strategies:-
HBL focused on all 3 Strategies in
Different periods to get more return. Now days they think the
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need to implement market pares-ration Strategy. Because of
growing no of banks opening in Pakistan.
HBL played and important role to flourish the banking sector by
introducing their products all over the world especially in
Pakistan. In this process of wide coverage they follow market
development strategy.
Diversification Strategies:-
HBL is mainly focus on
related Diversification to provide services and contribute in high
self esteem of their customer.
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HBL’s all strategies are directly matched with its vision with is;
“ENABLING
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PEOPLE
TO
ADVANCE
WITH
CONFIDENCE
AND
SUCCESS”
They are successful in providing their desired value &
importance to their internal as well as external customers.
HBL proved that its objective is not to bring profit only but
to enhance the satisfaction and improve the life style of their
stakeholders also.
INTRODUCTION TO HR DEPARTMENT
&
FUNCTIONS, SUB-UNITS OF HR
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HR department of HBL is one of the oldest department in
Pakistan. It is famous because of its training institutes, which are
3 in Pakistan.
Karachi
Lahore
Islamabad
HBL’s training institutes provides timely & useful training to their
own employees and employees of other Banks also.
It has trained the employees of UBL, MCB & ABL till now.
Mainly 2 types of training are provided to the employees,
The Role Of Human Resource Management
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Human Resource Management (HRM) is the function within an organization that
focuses on recruitment of, management of, and providing direction for the people who
work in the organization. Human Resource Management is the organizational function
that deals with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.
In a short way to say about HRM is putting the right people to the right task and
vice-versa to get the maximum out put for an organization in a process. The
people/workforce is represents one of its most potent and valuable resources in any
organizations.
Human Resource Planning, HR people need to determine the long-term/short-
term human resource needs, area they need and the requirements of jobs. Job descriptions
and job specifications will be designed base on the outcomes of the job analysis
information. HR representative people must knowledgeable about the design of work
process systems in which people succeed and contribute. And Human resources are also
responsible for tying incentives and rewards to certain positions and roles in order to
maximize performance levels. This is a strategic thinking task because it.
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DEMADN:
How they identify the demand of HR? They can ask from
different departments and from working groups that which kind of human
resource they are demanding for completion of their objectives and tasks
which are assigned to them. We will ask what type of knowledge skills and
abilities competences are needed or demanded by them. In HBL the
management system is centralized all decisions will be taken by the hade
office. If any new technology was introduced like firstly all working done
manually in banks but now a days all working is done on computers then ask
from the department how much work force is required by them and final
decision will be taken by the head office.
In HBL there demand is not too much because there turn over rate
is very less. Due to low turn over rate the demand for the new employees are
also very less. The bank mostly relay on its existing workers.
SUPPLY:
In supply firstly we should try to get the exact figure of
demand then see the supply of hr.
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We internally see either we can adjust the demand of hr or not.
either the skills we are requiring exists internally or not. If there is
availability we make adjustment otherwise no.
According to our requirement we give advertisements that
these knowledge skills and abilities we are requiring. Through it we get
response that people are willing or not.
In HBL the supply is also less because due to down sizing the
work of three people are done by one person. They try to maintain there
existing workers.
Forecasting:
The word forecasting means predict
or estimate. Here we have some data on the basis of which we estimate or
forecast. Fore casting can be done on the basis of some past data. They can
predict if this situation comes they can handle it like this. It will ensure the
smooth working.
The HABIB BANK LTD forecasting is done in the head
office. There head office in Karachi takes all the decisions regarding to it
will be taken there.
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HBL use’s a centralized approach and the system which all the branches
have is also working under the control of main branches of HBL. Human
resource management system of HBL is all computerized.
As HRMS consist of 3 stages as follows:
Basic personnel system:
Human resource management department of
HBL maintains all the record of employees electronically. The data
maintained by HR department mainly focus on the employee’s past records,
payroll’s, staffing etc
Augmented HR system:
HBL haves a wide system that’s why
augmented hr system of HBL helps them to use the information more wisely
to deal with the situations or to make the decisions. Augmented HR system
can track individual absences or separations by a variety of combinations of
work classification, geographical location, authority level, and so on
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Comprehensive and interactive HRMS:
It involves the following features:
Software more developed
Guide the employee’s having minimum knowledge
Relative information generated
Integrated different functions e.g. staffing, training etc
Performance appraisals used
RELATIVE FUNCTION:
It enables the users to customize the HR
data to be investigated, thereby offering a wide variety of searches and
analyses to be conducted.
STANDARDS ESTABLISHED BY HRMS OF HBL
SECURITY AND ACCESS:
As HBL is the oldest bank of Pakistan
that’s why the HRMS is highly secured. They have kept standards of
security and reliability from years which makes them leading bank of
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Pakistan. Its system is all centralized and by this the security of data
increases and access is feasible for those who need the data for some
important reason and the person having the authority is provided that
information.
USER FRIENDLY SYSTEM:
HRMS provides friendly
environment. Guidelines provided to the users and it also responses with the
work for those who have minimum knowledge about the system.
FLEXIBILTY:
HRMS if flexible so that if any change is needed it’s
adjusted easily. For example change in salary, qualification and status etc.
APPROPRIATION:
The system established is as per the conditions
and polices of HBL. As its very important that system should be appropriate
with your work.
FUTURE EXPANSION:
The software or the engineers hired are not
for that time it can also be helpful for future. Due the flexibility feature of
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the system change in the system can be easily adjusted which makes it as
future oriented system also.
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