LOCAL ORGANIZATION BANK AL-HABIB LIMITED

Executive Summary:
This report is for academic purpose. it was assigned to uses an assignment and project of our course Business Organization and Management .In the report we have mentioned the organization structure, policies, strategies, working styles of the organizatio n, decision making styles,SWOT analysis etc. We conducted questionnaires, interviews from HBL (ThokarNaizBaig) branch from top management low -level management and also searched at internet and collected information about organization.

Introduction:

HBL formerly Habib Bank Limited) now referred to as "HBL Pakistan" and headquartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of over 1450 branches in Pakistan and 55 branches worldwide. It has a domestic market share of over 40%. It continues to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers.

Services:
Habib Bank offers the basic range of banking services to its customers, to include commercial, bank in the emerging markets.

History:

HBL Plaza in Karachi

Habib Bank Limited (HBL) was established on 25 thAugust 1941 just one year after the historic Pakistan resolution was adopted in Lahore for carving an independent homeland for the Muslims of subcontinent. It was founded with the blessing of Quaid -e-Azam (Great Leader) Mohammad Ali Jinnah, the architected found er of Pakistan. We are proud of the fact that the Quaid -E-Azam demonstrated his faith and confidence in HBL by opening his personal account in our Bombay branch in the year 1946.The first prime minister of Pakistan Quaid -e-MillatLiaqat Ali Khan, on the ind ependence day of Pakistan (August 14, 1947) appreciated the service of the bank in these words. I wish every success to HBL and hope that it will continue to play an important and useful role in the industrial and commercial life of the Muslim nation The commitment of HBL towards the cause of the economic uplift of Pakistani people was successfully tested when the subcontinent was partitioned in 1947.The new born country faced serious financial difficulties. Habib Bank joined hands with the government o f Pakistan and placed all its services at their disposal for nation building activities. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers. It was HBL that introduced products such as Debit C ards, ATMs, TravellersCheques, etc., to the Pakistani market. We at Habib Bank cater to the needs of millions with our quality products & services. Today, Habib Bank is truly the bank of the people, providing its Customers convenience and satisfaction all over the world. Habib Bank Plaza, the second tallest building in Pakistan, is the proud symbol of HBLs leadership in Pakistans corporate arena.

Present Status:
The Habib Bank Group is leader in Pakistans services industry. Today, HBL has more than 1,400 branches all over Pakistan and presence in 25countries across five continents. With a revamped customer oriented philosophy, we are pursuing new avenues of leadership through innovation, as we gear up to face the challenges of the new millennium. A huge network of 1425 domestic branches, with largest bank in Pakistan. And55 international branches have enabled HBL to provide comprehensive services that meet customer needs. This has ensured thriving client relationship that forms the backbone of the Banks operations. Today, HBL plays a central role in Pakistans financial and economic development. It has come a long way from its modest beginnings in Bombay in1941 when it commenced operations with a fixed capital of 25,000 rupees. Impressed by its initial performance, Quaid-e-As am Mohammad Ali Jinnah asked the bank to move its operations to Karachi after the creation of Pakistan.HBL established itself in the Quaids city in 1943 and became symbol of pride and progress for people of Pakistan. Habib Bank has a pioneer in providing the innovative banking services. These have included the installation of the first main frame computer in Pakistan followed by first ATM and more recently internet banking facilities in 1425domestic branches.

Privatization:
The year 2003 was marked by the implementation of the Government of Pakistans program for privatizing the Bank. Amongst the qualified bidders, theAgha khan Fund for Economic Development (AKFED) offered the highest bid, which was accepted by the Government of Pakistan in December. HBLs privatization is the largest in Pakistans history and management takes great pride in fact that the bidding took place within four months of the commencement of the due diligence process in September 2003. With this change the anticipates further progress as AKFED brings considerable expertise in international finance and business and is familiar with conditions in Pakistan, where it already has extensive operations in various fields.

Economic Landscape:
The country is now in the process of warming its relations with the neighbours.Consequently the political stability has translated into direct economic benefit for Pakistan. G.D.P. growth has exceeded. The capital market performance has been, once again, very impressive and K SE has performed at par with all other stock markets of the world. The banking sector has played an important role in sustaining this growth: consumer financing has enhanced purchasing power and created new demand while the low interest rates has contribut ed to making exports price competitive. The state bank of Pakistan (SBP) has played a supportive monetary policy role to sustain and improved the current growth improved current growth momentum.

Financial Highlights:

HBL now ranks amongst the top corpora te entities in Pakistan in terms of profitability. This large jump is also reported profit the net interest income and profit growth of the bank has been achieved in an environment that can be termed unique for the sector in Pakistan. The improved economic fundamentals have allowed the government to slash its borrowing requirements and this , combined with substantial inflows of remittance , has resulted in a large buildup of excess liquidity in the banking sector.

Organization Profile:
Name of Organization:
Habib Bank Limited President and Chief Executive Officer: Zakir Mahmood Head Office: Habib Plaza, I.I. Chundrigar Road, Karachi -75650.HBL Phone Banking: 111 111-425Product Information: 111-33-44-55 FAX: 2411647

Telex: 20086-20751 HBANK-PK Website: www.hblgtr.com.pk Corporate: www.habibbankltd.com

Future Outlook:
For a bank to deliver quality services, it is imperative that technology be an integral part of all aspects of its operations. At Habib Bank, strategy has been to utilize cutting edge technology to serve customer efficientl y and in a cost-effective manner. HBL strive to accomplish this while maintaining a strong personalized approach in our customer relationship.HBL embarked on an ambitious plan in 2001 to revamp its technology platform. The technology initiative includes: Online inter-branch funds transfer Alternate delivery channels e.g. POS terminal ATM network for cash withdrawal, fund transfer, payment of utility bills etc. E-commerce Internet banking PC based banking for corporate customers Automation of treasury and trade finance HBL corporate website has recently been revamped and now provides a customer friendly, information rich and technologically advanced environment to its clientele. Enhancement of the Banks communications network to provide online connectivity to: More than 200 branches, corporate centers and regional offices in over 30 cities throughout Pakistan More than 100 ATMs covering most of cities Over 1000 nationwide point of sales terminal. Habib Banks corporate email users Implementation of a Virt ual Private Network (VPN) yielding the following benefits: Centralized processing of batch branches offering daily consolidation of data for customer service and risk management Implementation of technology in HBL international centers As with our other areas of operations, we recognized that at international centers too, technology is a key consideration for bank to ensure the competitive edge and maintain effective internal control. To that end Significant steps have been taken towards automation and of fering technology related faculties at our overseas centers.

Branch Network

International Operations:
Habib Bank is represented in 25 countries in 5 continents through a network of 55 branches, subsidies and joint ventures. The Bank has one of the mos t extensive international networks amongst the emerging market banks. Our ability to operate successfully in diversified markets and cultures in a function of long history in international banking- HBL opened first international branch in 1951and establish ed customer base. Our international presence spans major financial centers as well as developing countries. Vision

To be the premier organizations operating locally and internationally that provides the complete range of financial services to all segments undergone roof. Mission HBL is a client-oriented bank and its mission is: To be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders shareholders, customers and employees Hierarchy

Management Functions:
In HBL the management functions are performed as follow Planning In HBL, decision making is highly ce ntralized because all the decisions and plans are made at the top level of management. Organizing No autonomy is provided to HBL employees.HBL strives to become a cohesive and unified force, to offer the customer, a level of service beyond their expectatio ns. This force is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. And there is also a high degree of interaction among department managers. Leading The leadership approach established in HBL is team leadership and the positive attitude of HBL employees towards their job is because of increasing employee job satisfaction. Controlling HBL impose external control on its employees and the criterion used by man agement to evaluate the employees is their performance. Annual reports are sent to the top level management about each and every employee which evaluates their performance.

This analysis makes the managers aware of the organizations external and internal affairs and helps them to grip opportunities and exploits the resources. Strengths An old and well established organization. Customers are loyal. It is a well-known organization. Good reputation. Weakness Organization is quite behind in the field of IT. its employees lack IT knowledge. Out of 1400 branches only 600 branches provide online banking facility. Overstaffing is serious problem for the organization. Threads Other banks have high and new IT technology. Other banks offer different valuab le packages to the customers. Opportunities Our Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. HBL provide good opportunities for the employees in developing their careers. HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. Decision Making and Policymaking: Decision making process at HBL has following points: Centralized

All major policies, plans, rules and regulations and controls etc. are devised by head office of Habib Bank Ltd in Karachi. Then these policies are conveyed to the regional heads and branch heads. Decentralized All routine matters are decided at branch level by the respective heads of departments with permission of branch head. If any problem or matter is beyond limits of branch, then it is referred to the Regional Head quarter.

Types of Problems: Usually the middle managers face structured problems and they h ave the authority to deal with them without consulting the top managers. Apart from this programmed or more complex problems are solved by the top executives. Management Styles and Policies At the moment is the management is following the revamping and ree ngineering policies. The VSS (voluntary Separation Scheme) is offered to the employees to reduce the number of employee which is first toward reshaping of under new management. Collective Participation indecision -Making: Department heads meet frequently wi th each other and discuss problem with each other if any. They seek advice from each other and also the branch head is also available to all department heads to review or control the functions of bank. Employee Participation: The management is receptive to new ideas like for marketing some facility or improving any procedure, etc. Delegation of Power: Delegation means giving the authority to lower management. In Habib Bank Limited, top management makes the major decisions. So there is a centralized control. These are limits of authority approved for different levels of management at branch level. The branch operation manager and chief manager, takes active part in the decision -making. The lower level employees can make routine decisions relevant to their wor k. Control Function: There is a strict control in Habib Bank Limited. There is strict diligence over the activities of the branch by the regional head quarter and Head office. Both keep themselves completely informed by the activities of branches through d ifferent types of reports. Rules and regulations are strictly followed. Policies are implemented through the

supreme authorities at each branch. Too keep the works going; back up of each critical or important seat is given. Few authorized officers duly sig n most of documents. Head office, State Bank of Pakistan and external auditor conduct annual audit to check that bank operations have been satisfactory completed. Accounts department strictly controls expenses. Employees are instructed and encouraged to ab ide by the rules and follows the policies of bank. Each employee, who operates computer, has his own password and access to other passwords is prohibited. Organization Structure and Design The HBL is divided in main group in its organization structure. The one which performs the core business activities and the second which perform the support

HBL is an organization that provides opportunities for its staff to have challenging and rewarding long-term career. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organization. We believe that creativity and innovation comes from talent, knowledge and experience and it is our endeavor to provide and maintain an environment wh ich not only nourishes these strengths but also provides opportunities for the staff to have a career which has multidimensional growth opportunities. In doing so, HBG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training and hiring professionals and MBAs at entry -levelmanagement.The overall direction of HRG has been towards nurturing the strengths of the human capital to its maximum w ith a defining principal to help create a progressive environment and sustain a thorough commitment of our staff towards focused customer service.HRG therefore recognizes the need to

proactively invest in staff training anddevelop courses on a regular basi s. Under the umbrella of our Management and Organization Development Division (MODD) our Management Development Institute (MDI) with its three fully equipped chapters at Karachi, Lahore &Islamabad regularly conducts and outsource technical and personal development courses for our all level of staff enabling them to meet the challenges of the ever-changing business requirements and customer needs. During 2003, 529 courses, workshops, skill development clinics and seminars in the disciplines of Service &Attit ude, Market Research & Selling, Management & Communication, Credit &Finance, I.T. & e Banking, Treasury & Trade Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / Ex -House professionally skilled, qualified and certified faculty and industry experts for 10233 people of senior / middle line management & staff carving 1334 day straining days. There is no budget limit for Training and Education at Habib Bank.HR Group aims to maintain and further improve the service oriented culture and to make employment not only satisfying but also enjoyable. Omnipotent or Symbolic View of management In HBL, managers are also responsible for the success or failure of the organization but there are also some factors that have great effect on organization and that type of affairs are out of control of managers. Culture of the organization: At HBL we have created a challenging environment that encourages creativity and commitment. In our pursuit of excellence, we are focused on attract ing, developing and retaining the best talent in the marketplace. Our 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 wheth er locally or in the international arena. Thus, we enable our employees to achieve their professional goals while keeping in synch with the banks overall objectives.

Attention to Detail:

The employees in HBL are expected to exhibit precision, analyses and attention to detail OutcomeOrientation: In HBL the managers not only focus the results or the outcomes but also how the outcome is achieved Innovation and Risk Taking HBL aim is to be proactively responsive to new ideas, and to respect and reward the agents, leaders and creators of Change Team Orientation HBL strives to become a cohesive and unified force, to offer you, the customer, and a level of service beyond your expectations. This f orce is derived from participative and collective endeavors, a common set of goals and a spirit to share the glory and the strength to face failures together. Stability: The organization tries its best to make such decision which should not have any adverse effect on the status of the origination. Stability: The organization tries its best to make such decision which should not have any adverse effect on the status of the origination. The Source of Culture HBLhas a strict rule and regulations and employees learn culture by managers, trainings are conducted, books and different workshops are organized for the employees.

How Employees learn culture: In HBL, the employees learn culture by stories and by rituals. Innovative culture: HBL has innovative culture. HBL promotes the new ideas and appreciate itsemployees for giving new and innovative ideas. That helps the employees in achieving their goals and, they try to show their best at job . Customer-responsive culture HBL has customer responsive culture. The e mployees of the HBL are continues in their desire to please the customers and provide good service to their customers and satisfy the needs of customers. Focus on individual development HBL focus on individual development, HBL try to create the good cultur e, in which every employee can adjust, work properly, learn the new thing and give best. Trust and openness In HBL, top management have full trust on their employees. Mostly employees are honest and they Employees Empowerment

In HBL, managers have trust on their employees and they want that their employees also try to make decisions at their own job level. Toleration of Employees Expression : In HBL, there is no toleration of employees expression. They want work and

HBL has good relationship with their customers, suppliers. Managers try their best to great good environment with them and solve problems in well manner. [The general environment effects on HBL economic. HBL work in legal way, all the decisions of the managers are legal and they give benefit to their customers, stakeholder, stockbroker and employees. HBL fulfils the demographic conditions; HBL is introducing new types of accounts of different age groups, level of education income of family location. Now in HBL, there is a bit change of techno logy. Stakeholder relationships HBL have very good relation with his stakeholder and try to provide them better facilities and fulfil their need in proper and good manner.

Socioeconomic view In HBL, managers try to maximize the profits for the organizati on but as well as they make decisions and plans for protecting the society. They focus on development and welfare of the society. Social responsibility HBL make the goals and plans for society that gives benefit and they try to do right ethical decisions in a legal way. Social Obligation HBL fulfill its economic need in legal way. Social Responsiveness HBL make changes in it as the society change. They change with environment provides the best services. Value-Based Management

Managerial Ethics In HBL, there are also some rules that tell what is good or what is bad for organization while taking a decision. Work specialization HBL has a high degree of work specialization. It gives jobs to its employees according to their capabilities and their skills. So tha t they can give their best at their work in the specific field assigned to them Departmentalization:

HBL has functional departmentalization . Chain of Command In HBL, the decisions are made by top level managers and then these decisions extended to the employees at the lower level and they work according to these decisions to maintain this continuous chain of command. Formalization The structure of HBL is highly formalized because of high level of standardized jobs and because their employees behavior is guided by the rules and procedures made by their management. Human Resource Management HBL has a well-established HRM department which is dedicated for hiring capable, skillful and well educated employees which are selected through special selection proce sses like interviews and written test to ensure that the most appropriate candidates are hired .It also keeps in view the need and demands of existing employees. HumanResourceCentreDecruitmentSelectionRecruitmentIdentification and Selection of Competent Employees

Recruitment Meritocracy is an integral part of HBLs recruitment policy. Our merit -based recruitment process incorporates the principles of equal opportunity and leads to the appointment of the most capable candidate. This ensures openness and tr ansparency, allowing greater confidence in the outcome of the selection process. The merit principle at HBL aims to identify the most suitable person for the job assessed on the basis of the following parameters: Educational Background Skills and Competencies Abilities and Attitude

 Experience Interpersonal / Communication skills Selection The diagram below represents the process on which we base our selection. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team. We are proud of our ability to nurture individuals and empower them to hone their talents. Our size gives us 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, we visit various universities across the country to induct & groom fresh business graduates every year. Enthusiastic and talented youth form the backbone of our banking operations and are nurtured to become future leaders at HBL.To attract the best young talent, our resorting department employs a pro active strategy. We actively participate in campus seminars by giving presentations that highlight HBLs background, vision, mission, values, recruitment& selection proces s, future career prospects and overall business strategies. We hire 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.

Selection Devices In HBL, the Application formsmust be submitted by candidate by their CV and by giving basic information about himself/herself. Interviewsare conducted by top management and evaluate the candidate. Sometime written test are also conduct ed.HBL investigate the background of candidate and physical fitness tests are used for selection of the candidates.

Orientation When the new employee is hired the management organizes the orientation program to introduce the rules, working and culture of o rganization to new employee. Types of Training HBL have different training programs.HBL organize different training programs for their employees for updating of knowledge of business and technology. It may be on the job or rotation of job or in form of lec tures. Career Development There are great chances of promotion for the hard working employeesand for those who shoe their best performance and achieve the goal effectively and efficiently. Employees Performance Management: In HBL, top management evaluates the performance of his employees that the employees are achieving their goals or not, what improvement in employees makes them more successful. It is evaluated after a specific period of time. Motivation: In HBL, the employees are motivated by giving thos e bonuses, compensations and other facilities necessary for living a good life thatfulfils their social and the safety needs. Conclusion/Recommendations No doubt that HBL is the largest bank in the private sector and since its establishment it has progressed and improved tremendously and has a customer base exceeding 5 million but it can still advance further if it adopt new changing IT technologies as there is still room for someinprovemnets.It should train its employees about the new IT trends. Moreover certain needs of the employees should also be considered like bank timings should be acceptable and employees should be given importance and must be consulted in some decision making processes. Improved friendly relations are required between the top and the middle management. This will make the employees work even better for their organization

National / International Awards or Recognition

The bank has also received "Bank of the Year - 2011 (Mid-Size Banks) Award " from CFA Association of Pakistan Award for the third consecutive year. Award of Recognition, 2010 from International Finance Corporation (IFC) as the Most Active GTFP (Global Trade Finance Program) Issuing Bank in Middle East & North Africa for SouthSouth Trade. This is the second consecutive year that the Bank received an award from IFC in recognition of participation in GTFP. Bank of the Year 2010 (Mid Size Banks) Award from CFA Association of Pakistan. The qualifying banks are awarded points on the basis of Profitability, Efficiency, Growth, and Solvency. Again, this is the second time that the Bank has received this award, having received it earlier for the year 2009. Top 25 Companies Award for the year 2010 by the Karachi Stock Exchange. Criteria for the award include dividend payout, return on equity, compliance with listing regulations, and good corporate governance. This, too, is the second consecutive year that the Bank has received this award.

References: www.habibbankltd.com www.habibbankltd.com www.hblgtr.com.pk www.google.com Syed MussadiqHussain (Manager Habib Bank ThokerNiazBaigBranch)