CHAPTER 1

INTRODUCTION TO THE REPORT

Background of the Study

The main focus of this study is Employee Training and Development at the Bank
Al-Habib. The training and development function of an organization is often responsible
for helping employees to maximize their potential. Training and development helps in
building more efficient, effective and highly motivated team, which enhances the
company’s image and gives it a competitive edge over other banks.

Induction training is important as it enables a new recruit to become productive as

quickly as possible. It can avoid costly mistakes by recruits not knowing the procedures
or techniques of their new jobs. The length of induction training will vary from job to job
and will depend on the complexity of the job, the size of the business and the level or
position of the job within the business.

The following areas may be included in induction training:

• Learning about the duties of the job

• Meeting new colleagues

• Seeing the layout the premises

• Learning the values and aims of the business

• Learning about the internal workings and policies of the business

Training is also referred as aid to employee development. The purpose of training is to

ensure that the workers are properly taught the new methods of doing the jobs assigned to

1
them .The scope training depends upon what types of employees are trained. What
factors that decide for the progress of employee in the enterprise, his/her high degree
intelligence in his work it can be measured on his performances in Schools College or
university. Secondly he/she should have capability to learn new technology and apply
what he has learnt during his training period.

Employee training and developing helps to increase productivity, reduce

employee turnover, and increase efficiency resulting in financial gains and decrease need
for supervision. Employees frequently develop a greater sense of self-worth, dignity and
well being as they become more valuable to the firm and society.

Training plays vital role for the development of the enterprise. Training is looked upon
either as a piece decorations or as a fire fighting equipment to be used only in the case
dire need .It brings out new talents who are capable of having good basic knowledge of
the enterprise and its objectives. Hence the enterprise would get profited from the
employees as well as them also get attractive benefits from the concern for their
performance by providing incentives, bonus, allowances and promotions. This would
help to bring the workers to a mutual understanding within them and with the
management hence the growth of the enterprise will a steady one.

The Bank Al Habib recognizes the need to enhance productivity, performance and value
of its employees through continued training and education. This is necessary for the Bank
in order to achieve and maintain a leading position in the industry through a pool of its
skilled and motivated employees. The Bank’s training and development programs aim to
improve and enhance employee performance through continued learning and skill
development. It also enhances their skills and knowledge of banking practices.

1.2 Purpose of the Study

The main purpose of this study is to analyze “Training and Development of

Employees” at the Bank Al-Habib and the effects of Training and development on
employees’ performance. Employee training and development includes new employee
orientation, employee training, employee development and organization development.

2
But this study is mainly focused on new employee orientation, training and development.
Training is an integral part of Human Resource Development. It helps officers at the
Bank to plan and choose their career path.

1.3 Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an

employee or group of employees, e.g.

• When a performance appraisal indicates performance improvement is needed To

"benchmark" the status of improvement so far in a performance improvement
effort

• As part of an overall professional development program

• As part of succession planning to help an employee be eligible for a planned

change in role in the organization

• To "pilot", or test, the operation of a new performance management system

• To train about a specific topic.

1.4 BENEFITS FROM EMPLOYEE TRAINING AND

DEVELOPMENT

There are numerous sources of online information about training and

development. Several of these sites (they're listed later on in this library) suggest
reasons for supervisors to conduct training among employees. These reasons
include:

• Increased job satisfaction and morale among employees

• Increased employee motivation

3
 • Increased efficiencies in processes, resulting in financial gain
• Increased capacity to adopt new technologies and methods
• Increased innovation in strategies and products
• Reduced employee turnover
• Enhanced company image, e.g., conducting ethics training (not a good
reason for ethics training!)
• Risk management, e.g., training about sexual harassment, diversity training

Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their jobs.
Training is a learning experience in that it seeks a relatively permanent change in
an individual that will improve his/her ability to properly perform on the job.

Employee development on the other hand, generally focuses on the future jobs in
the organization. As the employee’s job and career progresses, new skills and
abilities are required.

Scope of the Study

This report is made only on the “Training and Development of Employees”

at the Bank Al-Habib and the effects of Training and development on employees’
performance of Peshawar region.

4
Research Methodology

Data can be obtained from primary or secondary sources. Majority of the

data presented in the report is collected through primary data sources. Primary
data is collected when there is insufficient secondary data available.

The report is prepared using both primary and secondary data that includes the
following methodology tools:

Primary Data

Primary data is collected through following ways:

• Interviews
• Questionnaire.

Secondary Data

Secondary data is collected through following ways:

• Internet Websites
• Books
• Journals

Problem Statement

Most of the organizations do not take training and development of employees as a

critical issue. Many organizations still don’t take their employees as an asset. If
they invest in their assets in shape of training and development, their employees
can give them better performance. So, this research is carried out to find out the
training and development at Bank Al-Habib.

5
1.6.2 Theoretical Framework

Independent Dependent

Training and Employee

Development Performance

1.6.3 Sample

The sample size consists of 50 (fifty) employees.

1.6.4 Instrumentation

The tool that has been used to gather data is questionnaire. After collecting information
from questionnaire, the next step is to conduct interviews of the employees. The data
collected is primary data.

1.6.5 Sampling

Sampling technique used is “Convenient Sampling”.

6
1.6.6 Data Analysis

The data analysis has been done through:

• Frequency bar Chart

1.7 Limitations of the Study

• Often employees are hesitant to provide the details of their organization.
• Most of the times, all the aspects of the study can not be explored due to
resources and time limitation.

• Lack of information about training and development of the bank as well as

no information was available about the competitors; therefore it was not
possible to carry out comparative analysis.

1.8 Justification

The training and development function of an organization is often responsible for helping
employees to maximize their potential. Training and development helps in building more
efficient, effective and highly motivated team, which enhances the company’s image and
gives it a competitive edge over other banks. Many organizations still don’t take their
employees as an asset. If they invest in their assets in shape of training and development,
their employees can give them better performance. The main purpose of this study is to
analyze “Training and Development of Employees” at the Bank Al-Habib and the effects
of Training and development on employees’ performance.

7
CHAPTER 2

LITERATURE REVIEW

“Training is essentially a learning process, in which learning opportunities are

purposefully structured. The aim of the process is to develop in the employees the
knowledge, understanding, skills, attitudes and behavior, (KUSAB) that have been
defined as necessary for the effective performance of their work and hence for the
achievement of the organizational aims and objectives by the most cost-effective means
available.” 1

Training and development encompasses three main activities2: training, education, and
development. Garavan, Costine, and Heraty, of the Irish Institute of Training and
Development, note that these ideas are often considered to be synonymous. However, to
practitioners, they encompass three separate, although interrelated, activities:

• Training

1
Tyson S & York A Essentials of HRM, 4th Edition P.161

2
http://en.wikipedia.org/wiki/Training_and_development

8
 This activity is both focussed upon, and evaluated against, the job that an
individual currently holds
• Education
This activity focusses upon the jobs that an individual may potentially hold in the
future, and is evaluated against those jobs
• Development
This activity focuses upon the activities that the organization employing the
individual, or that the individual is part of, may partake in the future, and is
almost impossible to evaluate.

The "stakeholders" in training and development are categorized into several classes. The
sponsors of training and development are senior managers. The clients of training and
development are business planners. Line managers are responsible for coaching,
resources, and performance. The participants are those who actually undergo the
processes. The facilitators are Human Resource Management staff. And the providers are
specialists in the field. Each of these groups has its own agenda and motivations, which
sometimes conflict with the agendas and motivations of the others.

The conflicts are the best part of career consequences are those that take place
between employees and their bosses. The number one reason people leave their
jobs is conflict with their bosses. And yet, as author, workplace relationship
authority, and executive coach, Dr. John Hoover points out, "Tempting as it is,
nobody ever enhanced his or her career by making the boss look stupid.” Training
an employee to get along well with authority and with people who entertain
diverse points of view is one of the best guarantees of long-term success. Talent,
knowledge, and skill alone won't compensate for a sour relationship with a
superior, peer, or customer.

Training and development may sometimes be viewed as a luxury or "necessary evil" by

senior management. In addition, few senior managers have the time to become personally
involved in such labor-intensive activities, so they do not see the direct benefits which

9
can be gained from these efforts. It may also be the case that senior management
overlooks or avoids this area because they do not have a clear model for making
decisions about whether or not training and development activities will lead to a
competitive advantage.3

The role of training and development in a service involved organization is many times
more in comparison with what it has in a manufacturing involved organization. This role
becomes more significant in a situation where the need to transform organizational
culture is identified as the most glaring problem and the most difficult impediment on the
way to organizational growth.4

Increasingly, high performing organizations today are recognizing the need to use best
training and development practices to enhance their competitive advantage. Training and
development is an essential element of every business if the value and potential of its
people is to be harnessed and grown. Many studies have highlighted the clear links
between well designed and strategic training and development initiatives and the bottom
line within the business.5

The environment in which most organizations operate today is continuously changing,

and the rate of change is increasing. Almost most organizations are now involving in
tremendous increase in international business and foreign assignments. Training and
developing the workforce offer an interesting case of change for any organization in light
of uncertain and rapidly changing environment. Many researches argue that training and
development programs increase the organizations' performance and effectiveness.
Toward a better understanding of the effects of training and development in the
workplace, this research points out the importance of training and development the

3
A Strategic Process Model For Small Business Training And Development

Journal Article By James W. Fairfield-Sonn; Journal Of Small Business Management, Vol. 25, 1987

4
http://www.ptcl.com.pk/aboutusc.php?NID=191
5
Training And Development - It’s Role In Achieving
Organisational Success

10
workforce, determines the major types of training and development programs, discusses
the relationship between training and the overall organizational performance, and offers
some guidelines for HR managers to design effective training and development
programs.6

2.1 The Importance of Training 7

The significance and value of training has long been recognized. Consider the popular
and often repeated quotation, “Give a person a fish and you feed him for a day. Teach a
person to fish and you feed him for a lifetime.” This simple but profound saying is
attributed to the wisdom of Confusions who lived in the 5th century BC. Given today’s
business climate and the exponential growth in technology with its effect on the economy
and society at large, the need for training is more pronounced than ever.

Training, in the most simplistic definition, is an activity that changes people’s behavior.
Increased productivity is often said to be the most important reason for training. But it is
only one of the benefits. Training is essential not only to increase productivity but also to
motivate and inspire workers by letting them know how important their jobs are and
giving them all the information they need to perform those jobs (Anonymous, 1998).
McNamara (n.d.) lists the following as general benefits from employee training:

Training is indeed a waste of money when the desired behavior does not occur. Gupta
acknowledges that not all performance problems can be addressed by training. In many
cases, non-training interventions are necessary (Gupta 1999).

6
http://www.oppapers.com/essays/Effects-Training-Developing-Workforce-Organization-Performance/12954
7
A TRAINING NEEDS ASSESSMENT FOR THE UNITED WAY
OF DUNN COUNTY WISCONSIN by Susan D. McClelland

11
Without the right training, employees can be your [the organization’s] biggest liability.
Trained effectively, however, they can become your biggest asset (Bartram and Gibson,
2000). Rosner (1999) adds another ingredient for success – support after training. He
states, “The most effective programs train workers in new behaviors and then train
managers to support employees as they apply learning daily (Rosner, 1999, p.43).
Support and endorsement from management can greatly enhance training results. One can
conclude that training is not always the answer, and when it is the answer, it has to be the
right training.

Training is big business. In 1998, American companies spent $60 billion on training
(Rosner, 1999).

“Training consists of planned programs designed to improve performance at the

individual, group and/or organizational levels. Improved performance, in turn,
implies that there have been measurable changes in knowledge, skills, attitudes,
and/or social behavior”.8

“The systematic development of the attitudes/knowledge/skill behavior patterns

required by an individual in order to perform adequately a given task or job.”9

“The acquisition of skills, concepts or attitudes that results in improved

performance in an on-the-job situation.”

“Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their
jobs. Training is a learning experience in that it seeks a relatively permanent
change in an individual that will improve the ability to perform on the job”.10

8
Wayne F.Cascio, Managing Human Resources, 5th Edition, and USA: Irwin McGraw-Hill, 1998, p. 260.
9
Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company LTD,
1999, p. 2.
10
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC,
1999, p. 228.

12
 Implications for Motivating Trainees

Three important implications for motivating trainees are11:

1. Make the objectives of the training program clear at the outset.

2. Set goals that are challenging and difficult enough that the trainees can
derive personal satisfaction from achieving them, but not so difficult that
they are perceived as impossible to reach.

3. Supplement the ultimate goal of “finishing the program” with sub goals
during training, such as trainer evaluations, work-sample tests, and periodic
quizzes. As trainees clear each hurdle successfully, their confidence about
attaining the ultimate goal increases.

2.3 Training Methods

New training methods appear with passage of time. While some are well
founded in learning theory or models of behavior change (e.g., behavior
modeling), others result more from technological than theoretical
developments (e.g., videotapes, computer-based business games). Training
methods can be classified in three ways; information presentation,
simulation methods, and on-the-job training.

2.3.1 Information Presentation Techniques

Information presentation techniques come under off-the-job training

method and it includes lectures, conferences, correspondence courses,
videos, reading lists, closed circuit TV, behavior modeling and systematic

11
Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p272.

13
 observation, programmed instruction, computer-assisted instruction,
sensitivity training, and long-rang programs of organizational improvement.

2.3.2 SIMULATION METHODS

Simulation methods are another type of off-the-job training method and it

consists of the case method, role playing, programmed group exercises, the
in-basket technique, and business games.

2.3.3 On-The-Job Training Methods

The most widely used training methods take place on the job. The
popularity of these methods can be attributed to their simplicity and the
impression that they are less costly to operate. On-the-job training places
the employees in the actual work situations and makes them appear to be
immediately productive.12 It is learning by doing. For jobs that are difficult
to simulate or can be learned quickly by watching and doing, on –the- job
training makes sense. On-the-job training methods include orientation
training, apprenticeship, near-the-job training (using identical equipment
but away from the job itself), job rotation, committee assignments (or junior
executive boards), understudy assignments, on-the-job coaching, and
performance appraisal.13

To choose the training method (or combination of methods) that best fits a
given situation, first define carefully what the trainer wish to teach. That is
the purpose of the needs assessment phase. Only then the trainer should

12
Decenzo/Robbins, Human Resource Management, 6TH Edition, USA: John Wiley & Sons INC,
1999, p. 230.
13
Wayne.F.Cascio, Managing Human Resources, 5TH Edition, USA:Irwin McGraw-Hills, 1998,p278.

14
 choose a method that best fits these requirements. To be useful, the method
should meet the minimal conditions needed.

2.4 Training Design Process

A general system model of training design process is as follows14:

TRAINING DESIGN PROCESS

Conducting
Ensuring Creating a
Needs
Employees’ Learning
Assessment Readiness for Environment
Training

Developing an Ensuring
Evaluation Transfer of
Plan Training

Monitor and
Select Training
Evaluate the
Method
Program

2.4.1 Levels of Analyzing Training Needs

14
Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand &Company LTD,
1999, p. 25.

15
 There are three levels of analysis for determining the needs that training can
fulfill these are:

 Organization analysis focuses on identifying where within the organization

training is needed.

 Task analysis attempts to identify the content of training – what an

employee must do in order to perform competently.

 Person analysis determines how well each employee is performing the

tasks that make up his or her job.

Training and Development Theories

Kirkpatrick's Learning and Training Evaluation Theory15

Donald Kirkpatrick's 1975 book Evaluating Training Programs defined his originally
published ideas of 1959, thereby further increasing awareness of them, so that his theory
has now become arguably the most widely used and popular model for the evaluation of
training and learning. Kirkpatrick's four-level model is now considered an industry
standard across the HR and training communities. The four levels of training evaluation
model was later redefined and updated in Kirkpatrick's 1998 book, called 'Evaluating
Training Programs: The Four Levels'.

The four levels of Kirkpatrick's evaluation model essentially measure:

• reaction of student - what they thought and felt about the training

• learning - the resulting increase in knowledge or capability

• behavior - extent of behavior and capability improvement and

implementation/application

15
Donald L Kirkpatrick, Professor Emeritus, University Of Wisconsin

16
 • results - the effects on the business or environment resulting from the trainee's
performance

All these measures are recommended for full and meaningful evaluation of learning in
organizations, although their application broadly increases in complexity, and usually
cost, through the levels from level 1-4.

All these measures are recommended for full and meaningful evaluation of learning in
organizations, although their application broadly increases in complexity, and usually
cost, through the levels from level 1-4.

evaluation
evaluation examples of
type (what relevance and
level description and evaluation tools and
is practicability
characteristics methods
measured)

• e.g., 'happy
• reaction
sheets',
evaluation
feedback
is how the • quick and very
forms
delegates easy to obtain
felt about
1 reaction • also verbal
the • not expensive
reaction,
training or to gather or to
post-training
learning analyze
surveys or
experienc
questionnair
e
es

2 learning • learning • typically • relatively

evaluation assessments simple to set
is the or tests up; clear-cut for
measurem before and quantifiable
ent of the after the skills
increase training
in • less easy for
knowledg • interview or complex

17
 e - before observation
and after can also be learning
used

• observation
• behavior
and
evaluation • measurement of
interview
is the behavior
over time are
extent of change
required to
applied typically
3 behavior assess
learning requires
change,
back on cooperation and
relevance of
the job - skill of line-
change, and
implemen managers
sustainability
tation
of change

• results • measures are

evaluation already in • individually not
is the place via difficult; unlike
effect on normal whole
the management organisation
4 resultsÂ
business systems and
or reporting - • process must
environm the challenge attribute clear
ent by the is to relate to accountabilities
trainee the trainee

Since kirkpatrick established his original model, other theorists (for example jack
phillips), and indeed kirkpatrick himself, have referred to a possible fifth level,
namely roi (return on investment). In my view roi can easily be included in
kirkpatrick's original fourth level 'results'. The inclusion and relevance of a fifth
level is therefore arguably only relevant if the assessment of return on investment
might otherwise be ignored or forgotten when referring simply to the 'results' level.

18
Theory X-Theory Y16
Douglas McGregor developed a philosophical view of humankind with his Theory X and
Theory Y in 1960. These are two opposing perceptions about how people view human
behavior at work and organizational life.

Theory X - With Theory X assumptions, management's role is to coerce and control

employees.

o People have an inherent dislike for work and will avoid it whenever possible.
o People must be coerced, controlled, directed, or threatened with punishment in
order to get them to achieve the organizational objectives.
o People prefer to be directed, do not want responsibility, and have little or no
ambition.
o People seek security above all else.

Theory Y - With Theory Y assumptions, management's role is to develop the potential in

employees and help them to release that potential towards common goals.

o Work is as natural as play and rest.

o People will exercise self-direction if they are committed to the objectives (they
are NOT lazy).
o Commitment to objectives is a function of the rewards associated with their
achievement.
o People learn to accept and seek responsibility.
o Creativity, ingenuity, and imagination are widely distributed among the
population. People are capable of using these abilities to solve an organizational
problem.
o People have potential.

16
“The Human Side of Enterprise” by Douglas McGregor

19
CHAPTER 3

BACKGROUND OF BANK AL-HABIB

3.1 Definition of Bank

Bank can be defined as:

“A financial institution that is licensed to deal with money and its substitutes by
accepting time and demand deposits, making loans, and investing in securities. The bank
generates profits from the difference in the interest rates charged and paid”.

A bank is a financial institution where you can deposit your money. Banks provide a
system for easily transferring money from one person or business to another. Using banks

20
and the many services they offer saves us an incredible amount of time, and ensures that
our funds "pass hands" in a legal and structured manner.

Bankers play very important role in the economic life of the nation. The health of the
economy is closely related to the soundness of its banking system. Although banks create
no new wealth but their borrowing, lending and related activities facilitate the process of
production, distribution, exchange and consumption of wealth. In this way they become
very effective partners in the process of economic development. Today modern banks are
very useful for the utilization of the resources of the country. The banks are mobilizing
the savings of the people for the investment purposes. If there would be no banks then a
great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital
provided by it is like blood in it. As long as blood is in circulation the organs will remain
sound and healthy. If the blood is not supplied to any organ then that part would become
useless, so if the finance is not provided to Agricultural sector or industrial sector, it will
be destroyed. Loan facility provided by banks works as an incentive to the producer to
increase the production. Many difficulties in the international payments have been over
come and volume of transactions has been increased. Cheques, drafts bills of exchange
and letters of credit are very important instruments of the banks. The banks collect these
instruments drawn on banks in other cities or countries and proceeds according to the
accounts of the customer's concerns.

3.1 Historical Background Of Bank Al-Habib

The Bank was incorporated as a public limited company under the companies
ordinance 1984 on October 15, 1991, named as Bank Commerce Al-Habib Limited
having its Registered/Head Office at 126-C, old Bahawalpur Road, Multan. Its shares are
listed o all the Stock Exchanges in Pakistan. Its is a scheduled bank principally engaged
in the business of commercial banking.

21
 Licenses to open the Bank’s branches were issued by State Bank of Pakistan
(SBP) and the 1st branch was opened on January 13, 1992 at Karachi. By February 25,
1992, the Bank had opened 5 branches, one each in Multan, Karachi, Peshawar, Quetta
and Mirpur A.K.

3.2 Branch Network

The BAHL as presence in 44 cities and towns of Pakistan. Branches are mostly
located in residential cum commercial areas providing the facility of “Banking at your
Doorstep”. All branches of BAHL are connected through online system. It has 176
ATM’s installed throughout Pakistan.

3.3 Subsidiary And Associate Companies

BAHL has a subsidiary Co. named as AL-Habib Capital Market (pvt) Ltd. which
commenced business in December 2005.

The Associate companies of Bank Al-Habib are Habib Sugar Mills Ltd. and Habib
Asset Management Limited. BAHL provides services as a trustee to Dawood Money
Market Fund.

3.4 International Operations

Habib family has been rendering the banking and financial services not only in
Pakistan but in many other parts of the developing and developed world. Some important
operations are as under.

• Bank Al-Habib Wholesale Bank Branch in Bahrain

• Habibsons Bank Ltd. London.

22
 • Habib Overseas Bank Ltd, South Africa.

• Habibsons Bank Tanzania Ltd.

3.5 Vision Of Bank Al Habib

“To be a quality financial service provider maintaining the highest standards in

banking practices”.

3.7 Mission Statement of Bank Al Habib

“To be a strong and stable financial institution offering innovative products and
services while contributing towards the National economic and social development”.

3.8 Board of Directors

The Board of Directors consists of 10 members as under:

 Chairman : Mr. Ali Raza D. Habib

 CEO/MD : Mr. Abbas D. Habib

 Executive Director : Mr. Qumail R. Habib

Directors Mr. Anwar Haji Karim

Mr. Shameem Ahmed

Mr. Hasnain A. Habib

Mr. Imtiaz Alam Hanfi

Mr. Murtaza H. Haib

23
 Mr. Syed Mazhar Abbas

 Company Secretary : Mr. Ahmad Saeed Siddique

3.9 Organization Hierarchy

At each position the duties, goals, functions, responsibility and authority are
clearly explained.

The channels that delegate these activities are called organization hierarchy. This
must be set in such a manner to best accomplish the organizational goals.

The nomenclature of various posts in the bank is as under:

1. Managing Director & Chief Executive (MD/CEO)

2. Executive Director (ED)

3. Advisor

4. General Manager (GM)

5. Deputy General Manager (DGM)

6. Assistant General Manager (AGM)

24
7. Senior Chief Manager (SCM)

8. Chief Manager (CM)

9. Consultant

10. Senior Manager (SM)

11. Manager

12. Assistant Manager (AM)

13. Officer Grade-I (OGI)

14. Officer Grade-II (OGII)

15. Sub Officers (S.O)

16. Management Trainees

3.10 Departments in Bank Al Habib

Departmentalization is the process of grouping jobs according to some logical

arrangement.17 The manner in which activities should be divided and formed into
specialized group usually referred to as departmentalization.18 BAHL has used the most
common base for departmentalization i.e. the functional approach to departmentalization.
Functional departmentalization means where grouping of jobs takes place according the
same, or similar activities.19

Following are the Departments of Branch Banking:

1. Cash Department

2. Deposits Department
17
Ricky W. Griffin, Management, Ed 5th, and USA: Houghton Mifflin Company, 1997, p298.
18
John Douglas and Joseph L. Massie, Managing, Ed. 2nd, New Jersey: Prentice Hall, 1973, p143
19
Ricky W. Griffin, Management, Ed 5th

25
 3. Clearing Department

4. Bills/Collections Department

5. Remittances Department

6. Foreign Exchange or Foreign Trade Department

7. Branch Administration

3.1Working Setup Of Branches

Manager

Asst. Manager/ operations manager

Operations dept Credit Foreign Exchange Branch Admin

26
CHAPTER 4

EMPLOYEE DEVELOPMENT

4.1 Definition of Employee Development

Development represents those activities that prepare an employee for future

responsibilities.”20

Development is training people to acquire new horizons, technologies, or

viewpoints. It enables leaders to guide their organizations onto new expectations
by being proactive rather than reactive. It enables workers to create better

20
William B Werther fr Keith Davis, Human Resource and Personnel Management, 5th Edition, Mc
GrawHill Inc; Int’lEdition, 1996, glossary.

27
 products, faster services, and more competitive organizations. It is learning for
growth of the individual, but not related to a specific present or future job.

With the following objectives in mind, the Bank initiated the preparation of a
Human Resource Development policy and plan.

Employee development, by design is more future oriented and more concerned

with education than employee job-specific training. By education we mean that
employee development activities to instill sound reasoning process to ones ability
to understand and interpret knowledge rather then imparting a body of facts or
teaching a specific set of motor skills. Development therefore, focuses more on
the employee personal growth. Successful employees prepared for positions of
greater responsibility have analytical, human, conceptual and specialized skills. It
is important to consider one critical component of employee development: all
employees, regardless of level, can be developed21. Although it is critical for
individuals to be trained in specific skills related to managing-like planning,
organizing, leading, controlling and decision-making.

Employee Development Methods

Some development of individual abilities can take place on the job. Job
rotation, assistant-to positions, &committee assignments are three popular on the
job techniques while lecture courses and seminars, simulation exercises; and
outdoors training are three off-the jobs methods.

4.3 On-The-Job Techniques

4.3.1 Job Rotation

21
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons INC, 1999, p.
232.

28
 Job rotation involves moving employees to various positions in the organization
in an effort to expand their skills, knowledge, and abilities. Job rotation can be
either horizontal or vertical rotation22. It turns a specialist into a generalist. In
addition to increasing the individuals experience and allowing him or her to
absorb new information, it can reduce boredom and stimulate the development of
new ideas.23 It can also provide opportunities for a more comprehensive and
reliable evaluation of the employee by his or her supervisor.

4.3.2 Assistant-To Positions

Employees with demonstrated potential are some times given the opportunities to
work under a seasoned and successful manager, often in different areas of the
organizations. Working as staff assistants or, in some cases, serving on “special
boards”, these individual perform many duties under the watchful eye of a
supportive coach and are groomed for assuming the duties of the next higher
level.24

4.3.3 Committee Assignment

Committee assignment can provide opportunities for employee to share in

decision making, to learn by watching others, and to investigate specific
organizational problems.25 When committee is of temporary nature, they often
take on task-force activities designed to solve a particular problem, certain
alternative solutions, and make a recommendation for implementing a solution.
These temporary assignments can be both interesting and rewarding to the
employee’s growth.
22
Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 288.
23
Ibid. p. 289.
24
Ibid. p. 437.
25
Ibid. p. 437.

29
4.4 Off the Job Training Techniques

4.4.1 Lecture Courses and Seminars

Traditional forms of instructions revolve around formal lecture courses and

seminars.26 Using a digitized computer technology, a facilitator can be in one
location giving a lecture, while simultaneously transmitted over fiber optic cables,
in real time to several other locations.

The most widely used simulation exercises include case studies, decision games,
and role-plays27.

These cases represent attempts to describe, as accurately as possible, real

problems that managers have to face. Trainees study the cases to determine
problems, analyze causes, develop alternate solutions, select what they believe to
be the best solution, and implement it. Simulated decision games and role playing
exercises put individuals in the role of acting out supervisory problems.

Simulation frequently played on a computer programmed, provide opportunities

for individuals to make decisions and witness the implications of their decisions
on other segments of organization.

4.4.2 Outdoors Training

Some times refer to as wilderness or survival training; the primary focus of such
training is to teach trainees the importance of working together; getting as a team.
Outdoor training typically involves some major emotional and physical challenge.

26
Wayne F.Cascio, Managing Human Resource, 5th Edition, USA:Irwin McGraw-Hill, 1998, p290.
27
Ibid. p. 290.

30
 This could be white water rafting, mountain climbing, paint-ball games, or
surviving a week in the “jungle”28. The purpose of such training is to see how
employees react to the difficulties that nature presents to them. The reality is that
today’s business environment does not permit employees to “stand alone”. This
has reinforced the importance of working closely with one another, building
trusting relationships, and succeeding as a member of a group29.

CHAPTER 5

EMPLOYEE TRAINING AT BANK AL HABIB

5.1 Training

Training is the acquisition of technology, which permits employees to perform their

present job up to the standards. Training is also required to enable the Bank to offer
competitive services to its clients. Training is the process of developing qualities in
human resources that will enable them to be more productive.

5.1.1 Objectives

Increase Bank’s productivity by:

 Improving performance of employees.

 Increasing adaptability and flexibility of each employee.

 Increasing the level of commitment.

 Reducing the employee turnover and absenteeism.

28
Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley & Sons INC, 1999,
P. 234.
29
Ibid. p. 234.

31
 Provide vehicle for institutional growth’ through Manpower Development.

 Aid Institutional strengthening by building professional competence.

 Increase and improve productivity/efficiency, which leads to increased

profitability.

 Foster uniformity in practice and procedure.

 Improve standards of customer service.

 Develop a common corporate culture

 Aid in the management of change made necessary due to change in technology,

law/regulations, economic and political environment and competitive pressures.

 Reduce the Gap between standard/desired performance and actual performance.

5.1.2 Purpose

The major purpose of training plan is to remove performance deficiencies,

whether current or anticipated, that are the result of employee’s inability to
perform at the desired level, and be more productive. Further, BAHL training plan
is also very important because ever-changing financial/ banking sector demands
flexibility and adaptability in the employees.

5.1.3 HR Department

It is imperative for the Human Resource Department of the Bank not only to
provide educated and trained manpower so as to enable them to handle their jobs
more professionally and efficiently in all areas of the banking but also to develop
talent and add value to staff potential to enhance output, improve profitability.
With the growth of the BAHL, the need for training both for emerging new issues,
as well as strengthening of basic competencies began to be addressed.

32
5.1.3.1 Functions Of HR Department Of The Bank Al Habib

The Human Resource Department of the BAHL will perform the following
specific functions:

1. Assess training needs of the staff of the Head Office/ Divisions/ Departments/
Branches in consultation with the In Charge/Manager Concerned.

2. Draw a training plan where by every officer of the Bank especially at the level of
OG-1 and below should participate and have training in the core areas of The
Banking laws, procedures, advances, operations, foreign exchange.

3. Chalk out training schedule for the current year.

4. Arrange internal and external courses of the staff.

5. Internal courses are arranged at head office premises for the subjects where in a
large number officers need to be trained.

5.1.4 Phases of Training and Development

Training and development program of the BAHL is designed in three phases:

1. Assessment Phases

2. Implementation phase

3. Evaluation phase

5.1.4.1 Assessment of Training Needs

BAHL uses two methods to assess the training needs of the employees. First, the
head office of the bank receives invitation from different training institutes regarding
different courses, seminars, and workshops; where after these are communicated to the
concerned branches, departments and divisions for their input. Accordingly relevant staff

33
is nominated against the concerned courses. These nominations are later on provided to
the respective institutes.

Secondly, to assess the training & development needs of each employee, a questionnaire
is designed comprising of two parts: Section-1 to be completed by employees (basic
information) and Section-2 by the controlling officer. Section 2 plays the major in
determining the training needs of an employee.

CHAPTER 6

ANALYSIS

Data Collection is an important aspect of any type of research study. Inaccurate data
collection can impact the results of a study and ultimately lead to invalid results.

Data collection methods for impact evaluation vary along a continuum. At the one end of
this continuum are quantitative methods and at the other end of the continuum are
Qualitative methods for data collection.

Questionnaires are an inexpensive way to gather data from a potentially large number of
respondents. Often they are the only feasible way to reach a number of reviewers large
enough to allow statistically analysis of the results. A well-designed questionnaire that is
used effectively can gather information on both the overall performance of the test
system as well as information on specific components of the system. If the questionnaire
includes demographic questions on the participants, they can be used to correlate
performance and satisfaction with the test system among different groups of users.

34
Questionnaires have been distributed among employees apart from the interviews to
know their response regarding certain issues of employee orientation, training and
development. A questionnaire is a pre-formulated written set of questions to which
respondents record their answers. A questionnaire is an efficient date collection
mechanism. Questionnaires were personally administered. Any doubt that the
respondents have on any question been clarified on the spot. The research topic was
introduced to the respondents and they were motivated to give their frank answers.

1. Training duration I received was?

Options Percentages

1-2 Month 90%

3-4 Months 0%
5-6 Months 10%

Employees duration of training

1-2 months
90%

5-6 months
10% 3-4 months
0%

35
The pie chart for this question shows that most of the employees say that their training
duration was 1-2 months. In answer to this question, 90% employees said that their
training duration was 1-2 months, and 0% said 3-4 months and 10% said 5-6 months

2. Is training necessary for every employee?

Options Percentages

Yes 100%
No 0%

Percentage of the training necessity

No
0%

Yes
100%

36
The pie chart for this question shows that employees say that training is necessary for
every employee. In answer to this question, 100% employees said yes.

3. Bank provides incentives after training?

Options Percentages

Yes 36%
No 64%

percentage of incentives
employes received after
training

No
64%

Yes
36%

37
The pie chart for this question shows that majority of employees say that Bank does not
provide incentives after training. In answer to this question, 36% employees said yes and
64% said no.

4. I am satisfied from the training I received?

Options Percentages

Yes 94%
No 6%

percentage of satisfaction after

training

Yes
94%

No
6%

38
The pie chart for this question shows that majority of employees say they are satisfied
from the training they received. In answer to this question, 94%employees said yes and
6% said no.

5. Trainers are capable enough of handling the problems during training?

Options Percentages

Yes 96%
No 4%

trainers handling the

problem

Yes
96%

No
4%

39
The pie chart for this question shows that majority of employees say that trainers are
capable enough of handling the problems during training. In answer to this question,
96%employees said yes and 4% said no.

6. I practically performed the training?

Options Percentages

Yes 72%
No 28%

practically training
performed

Yes
72%

No
28%

40
The pie chart for this question shows that majority of employees say that they practically
performed the training. In answer to this question, 72% employees said yes and 28% said
no.

7. Trainers give positive response during training?

Options Percentages

Yes 88%
No 12%

positive response during

training

Yes
88%

No
12%

41
The pie chart for this question shows that majority of employees say that trainers give
positive response during training. In answer to this question, 88% employees said yes and
12% said no.

8. Training method encourages in improving my job performance?

Options Percentages

Yes 92%
No 8%

training for better job

performance

Yes
92%

No
8%

42
The pie chart for this question shows that majority of employees say that training method
encourages in improving job performance. In answer to this question, 92% employees
said yes and 8% said no.

9. Training has impact on my performance appraisal?

Options Percentages

Yes 64%
No 36%

percentage of performance
appraisal

No
36%

Yes
64%

The pie chart for this question shows that majority of employees say that training has
impact on performance appraisal. In answer to this question, 64% employees said yes and
36% said no.

43
 10. There is any change in my behavior / attitude after receiving training?

Options Percentages

Yes 90%
No 10%

perentage of employees behvaiour after

receving training

Yes
90%

No
10%

The pie chart for this question shows that majority of employees say that there is change
in behavior / attitude after receiving training. In answer to this question, 90% employees
said yes and 10% said no.

44
 11. The mode of training I received is?

Options Percentages

On the job training 94%

Off the job Training 6%

Employees perentage mode training

received

On the job
training
94%
Off the job
Training
6%

The pie chart for this question shows that majority of employees say that the mode of
training is on the job training. In answer to this question, 94% employees said that
training mode is on the job training and 6% said off the job training

45
 12. The bank has training schedule?

Options Percentages

Yes 100%
No 0%

Training schedule of the bank

No
0%

Yes
100%

The pie chart for this question shows that employees say that the bank has training
schedule. In answer to this question, 100% employees said yes.

46
 13. The training program offered needs improvement?

Options Percentages

Yes 92%

No 8%

perentage of improvement in training

program

Yes
92%

No
8%

The pie chart for this question shows that majority of employees say that the training
program offered needs improvement. In answer to this question, 92% employees said yes
and 8% said no.

47
 14. The bank bears all the costs of the trainee?

Options Percentages

Yes 86%
No 14%

C o s t o f th e tr a in e e

YES
86%

14% NO

The pie chart for this question shows that majority of employees say that the bank bears
all the costs of the trainee. In answer to this question, 86% employees said yes and 14%
said no.

48
 15. The training program fulfilled my training needs?

Options Percentages

Yes 78%
No 22%

Satisfaction Ratio Regarding Training Need

No
22%

Yes
78%

The pie chart for this question shows that majority of employees say that training
program fulfilled employees’ training needs. In answer to this question, 78% employees
said yes and 22% said no.

49
 16. There is practical aspect of training given to me?

Options Percentages

Yes 82%
No 18%

practical aspect of training

Yes
82%

No
18%

The pie chart for this question shows that majority of employees say that there is practical
aspect of training given to employees. In answer to this question, 82% employees said
yes and 18% said no.

50
17. The training method encourages positive transfer of knowledge and skills
from the
Options Percentages
training
to the
Yes 86%
job?
No 14%

Positive Transfer of Knowledge an skills

NO
14%

YES
86%

51
The pie chart for this question shows that majority of employees say that training method
encourages positive transfer of knowledge and skills from the training to the job. In
answer to this question, 86% employees said yes and 14% said no.

18. The training environment is friendly?

Options Percentages
Yes 72%
No 28%

Environment Friendliness

YES
72%

NO
28%

52
The pie chart for this question shows that majority of employees say that the training
environment is friendly. In answer to this question, 72% employees said yes and 28%
said no.

Options Percentages
Yes 96%
No 4%

19. Training has polished my skills and helped me to perform better?

53
 T r a i n i n g in te r m s o f b e tte r p e r fo r m a n c e

NO
4%

YES
96%

The pie chart for this question shows that majority of employees say that training has
polished their skills and helped them to perform better. In answer to this question, 96%
employees said yes and 4% said no.

20. The budget and other resources allocated for the training programs are
enough?

Satisfaction level of the budget allocation

Options Percentages
Yes 78%
No
No
22% 22%

Yes 54
78%
The pie chart for this question shows that majority of employees say that the budget and
other resources allocated for the training programs are enough. In answer to this question,
78% employees said yes and 22% said no.

CHAPTER 7

FINDINGS

1. One of the main finding of the report is that training method encourages in
improving job performance and the training program fulfilled employees’ training
needs.

2. Most of the employees say that their training duration was 1-2 months.

55
3. Employees say that training is necessary for every employee.

4. The study also found that Bank does not provide incentives after training.

5. This research also found that employees are satisfied from the training they
received.

6. Employees say that trainers are capable enough of handling the problems during
training.

7. The employees practically performed the training.

8. Employees say that trainers give positive response during training.

9. This research also shows that according to employees the training method
encourages in improving job performance.

10. Employees say that training has impact on performance appraisal.

11. Majority of employees say that there is change in behavior / attitude after
receiving training.

12. Majority of employees say that the mode of training is on the job training.

13. The bank has training schedule.

14. The employees feel that training program offered needs improvement.

15. The bank bears all the costs of the trainee.

16. Training program fulfilled employees’ training needs.

17. There is practical aspect of training given to employees.

18. Training method encourages positive transfer of knowledge and skills from the
training to the job

19. The training environment is friendly.

20. Training has polished the employees’ skills and helped them to perform better.

21. The budget and other resources allocated for the training programs are enough.

56
 RECOMMENDATIONS

Following are some of the recommendations;

57
 1. The Bank should develop a mechanism that includes positive reinforcement for
the trainee. This will motivate them to polish their skills, gain knowledge, and
help develop their attitude.

2. The trainers are required to teach employees the practical side of their jobs. They
should give them an opportunity to practice what they have learnt in the training
session.

3. The Bank should provide incentives after training.

4. Training program offered needs to be improved in order to make the employees

more effective in performing their job.

CONCLUSION

The Bank Al Habib recognizes the need to enhance productivity, performance and value
of its employees through continued training and education. This is necessary for the Bank

58
 in order to achieve and maintain a leading position in the industry through a pool of its
skilled and motivated employees. The Bank’s training and development programs aim to
improve and enhance employee performance through continued learning and skill
development. It also enhances their skills and knowledge of banking practices.

Training and development helps in building more efficient, effective and highly
motivated team, which enhances the company’s image and gives it a competitive edge
over other banks. The training method encourages in improving job performance and the
training program fulfilled employees’ training needs but still the training program offered
by Bank Al-Habib needs improvement.

But the Bank should develop a mechanism that includes positive reinforcement for the
trainee. This will motivate them to polish their skills, gain knowledge, and help develop
their attitude.

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62