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PREFACE

This report gives us the brief outlook of Habib Bank with special emphasis on recruitment, selection, performance, training, appraisal, motivation system, and termination and retirement of its employees. We have examined the system very carefully. To collect all the information, we interviewed the most senior person Mr. Shaikh Muhammad Raffi, Vice President and Muzafar Ali Abdi manager Habib Bank University branch. We are thankful to these persons for providing us assistance in this report. We have tried to highlight the importance of human resource in any organization. And finally, we hope our report will give valuable information to the reader.

ACKNOWLEDGEMENT:

By the grace of almighty God we have been able to manipulate and compile the report. For the achievement of this goal many personalities help us out. We wish to record our debt, to all the persons on whom we have freely drawn. First we are highly indebted to our most respectable course instructor Mr. Nazik Hussain who assigned this report and provided us an opportunity to know how in actual at Habib Bank Limited for the recruitment and selection in Human Resource management. During our research for this report Mr. Ashraf Nasir operational manager RHQ. BWP. helped us a lot in arranging all information that we get. Without the help of him we cant achieve our goal.

EXECUTIVE SUMMARY:
This report focuses on human resource aspects of the overall management plan and it shows that how human resource functions are carried out in one of the most prestigious banks operating in the country. The human resource process includes HR planning, recruitment, selection, placement, training and development of the employees in the organization. This process insures that the firm has the right people at the right time at the right positions. Traditionally HR is viewed as comprising of certain fundamental personal function such as selection, training and compensation. Now a days human resource management has extended from its traditional functions into the domain of planning, motivation, etc. In this report we have tried to examine the practical implementation of the theoretical concepts learnt throughout this course. An effort has been made to analyze and ascertain the variances between the HR functions carried out at Habib Bank of Pakistan and the theoretical concepts underlying the field of Human Resource Management.

EVOLUTION OF BANKING:
As for as the word bank is concerned, it is not yet decided how it was concerned, there are various opinions regarding the organization of the word Bank. One view is that the word is derived from words bamcus or bamque, which means a bank. Another opinion is that the word bank is derived from German word back which means first of funds. However, no record is available to confirm validity of any options.

HISTORY OF BANKING:
It is believed that Baby Lonians were the first to develop system. As early as 2000 B.C. King Hammurabi, the founder of the baby lonian empire drew up a court where he laid down standards, rules and procedures for banking operations which deals with all aspects of loans, interests, pledges, guarantees, natural accidental laws and thefts. Later on Simerians and Hellities standardize the value of goods and silver, cooper and browns.

MODERN BANKING:
Banking in its modern form started in Britain when many of the Lombardy merchants came to England in the 14th century. They deal not only keeping the money in safe custody but also changed the money for the travelers, for the merchants in foreign trade. Later on the business was taken over Gold Smith. They introduce necessary facilities of safe keeping of the valuable and the cash of their customers. This Gold Smith assured the cash or articles left with them. These were Gold Smith notes.

BANKING IN PAKISTAN:
At the time of independence there were 487 offices of scheduled banks in Pakistan. However the banks including those having their registered offices in Pakistan transferred them to India. By 30th June 1948 no. of offices of scheduled banks in Pakistan declined from 487 to only 195. There were 19 non-Indian foreign banks with the status of small branch offices while there were only two Pakistani banks i.e. Habib Bank and Australian Bank.

ORGANIZATION OF BANKING IN PAKISTAN:


At present the banking structure of Pakistan comprises of following. 1. STATE BANK OF PAKISTAN

This is the central bank of Pakistan. State bank is charged with the monetary and credit system of Pakistan. 2. COMMERCIAL BANKIG:

Presently commercial banking is operating in nationalized and private sector. Some prominent banks are: I. Habib Bank Limited II. United Bank Limited III. National Bank of Pakistan IV. Muslim Commercial Bank Limited V. Allied Bank of Pakistan However keeping in with the policy of de-nationalization of economy, Govt. intended to denationalize these banks in various phases. So for Muslim commercial bank and Allied bank of Pakistan has already been privatized.

EXCHANGE BANKS:
Foreign Banks other than Indians banks known as exchange banks. At present 22 banks with 66 branches working in main cities.

COOPERATIEVE BANKS:
These banks are an integral part of the cooperative moment, which aims at the promotion of the self-reliance and mutual agricultural and others.

SAVING BANKS:
It accepts deposits from public and invests them in various Govt. projects. These banks are I. Post Office Saving Bank II. National Saving Center

SPECIALIZED CREDIT INSTITUTIONS:


I. These provide medium and long-term finance to various sectors. Such institutions are II. Pakistan Industrial Credit & Industrial Corporation III. Industrial Development Bank of Pakistan IV. Agriculture Development Bank of Pakistan V. Investment Corporation of Pakistan VI. National Investment Trust. Etc.

INTERODUCTION TO HABIB BANK OF PAKISTAN:


Habib Bank of Pakistan was established in 1941 in the private sector an owner of the bank was Habib Ismail. The head office of the bank was in Bombay with branches in Calcutta and New Delhi.

CONTRIBUTION DURING INDEPENDENCE:


Habib Bank played crucial role in bringing stability in banking sector and helps the Govt. out by providing big loan in 1947, when the Govt. was facing financial crises. It also played very significant role in transferring the deposit of Muslims from India to Pakistan. At the time of independence it was one of the only two Muslims Banks operating in Pakistan. After independence it kept on playing. Its vital role in the development of banking system and stabilizing the economy. It showed tremendous growth and the branches of the bank opened very rapidly all over the country. In 1974, along with other banks it was nationalized and it is still working in Govt. sector.

PRESENT SCENARIO:
The phase of the bank are conducted by the board of the directors. The board of director is headed by president. In addition to the president there are six directors. Name of the current president is Zakir Mehmood.

FINANCIAL POSITION:
ORGANIZATIONAL STRUCTURE:
DOMESTIC OPERATION:

The bank is divided into 23 regions and regional chief heads each region. The total branches of the Habib Bank Limited are 1419 and the total branches in the BWP region are 54.

BAHAWALPUR REGION:
Bahawalpur region consists of 5 dist., which are as follows 1. 2. 3. 4. 5. Bahawalpur Rahimyar khan Bahawalnagar Vehari Lodhran

Regional chief executive of Bahawalpur region is Syed Hamid Hussain Zaidi. There are two general managers working under regional chief executive. 1. General Manager Operation 2. General Manager Credit

HIERACHY OF HABIB BANK LIMITED:

President

Board of Directors

Managing Committee

Retail Banking

Corporate Banking

Asset Remedian Measure

International Banking

Finance Audit

23 Regions

Regional Chief Branch Manager

INTRODUCTION:
Rensis Likert asserts that human assets are more valuable than physical assets and should be carried on the organizations balance sheet. After all, each productive employee represents a considerable investment in recruiting and training. At to this cost it would take to find, hire and train someone else to do the same job and you can begin the significance of Human Resource Management. Likert goes on to argue that in economic recessions, firms would be wiser to reduce inventories drastically and sell machinery than to dispose of their most important asset-people. Traditionally viewed as Personal Management involved the performance of certain basic Personnel Functions as selection, training, and compensation. These functions often were performed with much regard for their interrelationship or intended contributions to organizational objectives. In contrast Human Resource Management as it is currently perceived represents the extension rather than the rejection of the traditional requirements for managing personnel activity effectively. Required still is an understanding of human behavior and the skill to utilize it. Also required the knowledge and various personnel functions performed in managing human resources, as well as the ability to perform them in accordance with organizational objectives. An awareness of existing economic, social, and legal constraints upon the performance of these functions is most essential. Human Resource Management as it is practiced today in organizations like Habib Bank Limited and about every other big organization represents a system approach. This approach recognizes the dynamic interaction of personnel function and with the objectives of the organizations. Most important, it recognizes that human resources planning must be coordinated closely with the organizations strategic and related planning functions. As a result efforts in human resource management are

being directed toward providing more support for the achievement of the organizations operating goals. The present status of the field of HRM has been achieved only after years of progress involving an evolutionary development. We hope that this report will help readers not only better understand the forces that have contributed to this progress, but also to become more aware of the forces that may have an effect upon it today and in the future.

DETERMINATION OF NEEDS:
(JOB DESIGN)
An organization that dont do the planning for Human Resources may find that it isnt meeting either its personnel requirements or its overall goals effectively, it is a challenging task today, given the increasingly competitive environment. The HRM department can have a significant effect on an organization in a number of ways, depending on what goals a company chooses to focus on. Human Resource planning is the process of anticipating and making provisions for the movement of people into, within, and out of the organization. Its purpose is to optimize the utilization of these resources and to have available the required no. of people with the needed qualifications to fill the positions openings where and when these opening occur.

IMPROTANCE OF HUMAN RESOURCE PLANNING:


It is an essential process of Management. Because management entails accomplishing results with and through people, the planning process must include the organizations human resources. HRP provides the foundation for an effective personnel program and for coordinating the personnel functions being performed with in it. Several intangible costs may result from inadequate HRP or lack of it. For example, inadequate HRP can result in vacancies remaining vacant. The resulting loss in efficiency can be costly, particularly when lead-time is required to train replacements. Situations also may occur in which employees are being laid off in one department while applications are being hired for similar jobs in another

department. This may cause over-hiring and result in the need to layoff those who were recently hired. Finally, lack of HRP makes it difficult for employees to make plans for effective career or personal development. As a result, some of the more competent and ambitious ones may seek other employment where their career opportunities can be more clearly identified.

JOB EVALUATION:
It is obvious that we value some positions more than others. We pay more for them, and we take greater pains filling them. Several workable approaches to the evaluation of jobs have been presented, but here we will discuss only the two most commonly used ones, here we should remember one thing that we are evaluating jobs not the people, which are: 1. Comparison Method 2. Job-Factor Method

COMPARISON METHOD:
This method of evaluating positioned that managers fill is basically a subjective guesswork approach. The Known salaries of top management in the same company, and the going price for positions throughout the industry are balanced in the mind of the evaluating manager to arrive at a comparative value figure.

JOB-FACTOR METHOD:
The job-factor method is more involved and objective but still owes a major debt to the subjective judgment of the evaluator. This approach assigns mathematical difficult factors to each job or position. This technique has been used for years at the

lower level job, and resulted in phenomena such as overtime. However, it is still not widely applied in the upper echelons because the assignment of pay-worthy difficulties pits one evaluators guess against anothers. every managers assumes his or her problem to be the most in surmountable. At Habib Bank Limited Human Resource Planning is an ongoing process, which continues all year round. In this process all business heads including Human Resource Department head takes part. It is budgeted annually. The hiring could be only permanent basis or on the contract basis according to the requirement of the bank. It is done in line with line and staff managers. The top executives and line managers are included in planning, for their advice on the need of their own department. We do have to be very careful in planning for the future personnel needs of our company, because at no point of time do we want to be overstaff in one department and understaffed in another, said Mr. Shaikh M. Rafi Vice President HBL.

IMPROTANCE OF RECRUITMENT AND SELECTION FOR ORGANIZATION:


The quality of organization Human Resources depends upon the quality of the recruits. Recruitment is the process of finding attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. As Habib Bank Limited Company is a service organization, so its performance is mainly dependant upon the abilities and performance of its employees and best people can be selected through only good recruitment process.

RECRUITMENT PROCESS:

Human Resource Planning Affirmative Action Plan Specific Results of Manager Job Analysis Information Job Opening Identified Managers Comments Job Methods Requirements of Recruitment Satisfactory Pool of Recruits

PROCESS OF RECRUITMENT IN HABIB BANK:


Earlier Habib Bank Limited has separate independent Human Resource Department for recruitment and selection of its employees. But now this department is no more in existence from 1997. New permanent recruitment is banned since 1998 in Habib Bank Limited. But the employees on contract basis were fulfilling needs for new employees during this period. Now the recruitment process is totally centralized. Pakistan Banking Finance Corporation is responsible for recruitment and selection for Habib Bank Limited. Selection of new employees is made by direct recruitment or by promotion existing employees. Employees serving low grades in categories (2-3) that possess the requisite qualification are eligible to compete with direct recruitment made for higher grades.

HABIB BANK LIMITED


Appointment, Probation, and Termination of Service

CLASSIFICATION OF STAFF
1. The permanent staff of the corporation shall be classified under the following categories: -

CATEGORY-1
Senior Executive Vice President Executive Vice President Vice President Assistant Vice President Officer Grade -1 Officer Grade -2 Officer Grade -3

CATEGORY 2
Stenographer Senior Assistant/ Head Cashier/ Senior Typist/ Steno typist Typist/ Computer Operator Assistant/ Cashier/ Telephone Operator

CATEGORY 3

Electrician Driver Chowkidar/ Messenger Sweeper The board shall have the power to determine/ change classification of any post not falling under any of the classification in category 1. In case of other categories the classification of such posts may be determined/ changed by the Managing Director.

APPOINTMENT
Appointments may be made both direct recruitment and by the promotion.

RECRUITMENT
The Managing Director shall make all appointments of employees in categories 2 & 3. Managing Director shall make SVP appointments of officer in category 1 on recommendation of the Pakistan Banking Finance Corporation/ Departmental selection committee comprising of 03 members. The matter may be placed before HBL Board of Director for approval.

DOMICILE
Candidates must be domiciled in Pakistan & Azad Jammu Kashmir

EDUCATION QUALIFICATION
1) Minimum educational qualification for recruitment in category 1 a. Master Degree in Banking and Finance related subjects from recognized university. b. Bachelor Degree in Engineering and Computer Sciences. 2) The minimum qualification for the post in category 2 & 3 shall be as follow: a. Assistant/ Cashier should be Higher Secondary School certificate. b. Typist Higher Secondary School Certificate with typing speed 40 words per minutes. c. Steno typist: Higher Secondary School Certificate with shorthand and typing speed of 80/45 words per minute.

d. Stenographer: Higher Secondary School Certificate with shorthand and typing sped 120/45 words per minute. e. Telephone operator: Higher Secondary School Certificate with experience of operating PABX. f. Messenger: The person who can read and write. g. Driver: Up to Primary School certificate having 05 years valid light duty driving license. These conditions can be relaxed by the competent authority when they need.

AGE LIMIT
1. A candidate shall not be less than 18 years or more than 30 years of age at time of recruitment in HBL. 2. The competent authority may relax the age limit

MEDICAL EXAMINATIONS
Every candidate must be declared physically fit by HBL medical officer.

PROBATION
1) A candidate selected for appointment in category 1 shall be on probation for one year. The period of probation may be relaxed or dispensed with by the competent authority. 2) Employees other than those in category 1 shall be placed on probation initially for period not exceeding six months at the discretion of the competent authority. 3) On satisfactory completion of the period of probation employees may be confirmed.

EXTENSION OF PERIOD OF PROBATION


In the event of an employees failing to show satisfactory progress during his/her probationary services, the competent authority may, at its discretion, extended

his/her period of probation or offer an appointment in lower grade or dispense with his/her services.

PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. Ordinarily each persons immediate superior in the organization makes the evaluation, and this rating is reviewed in turn by his superior.

APPLICATION OF PERFOMANCE APPRAISAL


1) Employee performance 2) Employee development 3) Supervisory understanding 4) Guide to job changes 5) Wages & salary 6) Validate personnel program

PERFORMANCE APPRAISAL IN HABIB BANK LTD.


In Habib Bank limited for the purpose of appraisal the technique that is used for this purpose is setting of goals then the achievement of this goal. Each persons (Manager) performance is compared against his/her agreed objectives. This is

management by objective method. And then each person is ranked according to the goal achievement.

CAREER DEVELOPMENT
A career is a life long sequence of jobs integrated with the attitudes and motives of the person as he or she engages in these work roles.

CAREER STAGES
1) Exploration stage 2) Establishment stage (early career) 3) Maintenance stage (mid career) 4) Decline stage (retirement)

CAREER DEVELOPMENT IN HABIB BANK LTD.


Habib bank offers its employees with an ample opportunity to plan and develop their career. For this purpose now the bank is encouraging its employees to improve their qualification by improving their education. Bank is also providing the opportunities to move up in the organizational hierarchy by the virtue of getting required qualification. Habib bank is providing finance to its employees to acquire the degree of MBA from any approved university or institute.

TRAINING

Training is the organized procedure by which people learn knowledge and skill for definite purpose. The objective of the training is to achieve the change in the behavior of those trained. Training is often distinguished from education. Education is thought of as being broader in scope. Its purpose is to build the individual.

TRAINING IN HABIB BANK LIMITED


In each of its regions the HBL is having its training center where they train the people according to the requirement of the job they are going to acquire in the near future. This training can be to a newly recruited person or to a person who is already working in the bank & whose position has been changed due to some promotion or other reason. So they need some formal training to fulfill their new duties successfully.

MOTIVATION
Motives are the main spring of action in people. The leader who wishes to incite his followers to reach an objective must hold out the promise of reward once the objective is attained.

MONEY AS A MOTIVATOR
Money should be looked upon as an instrument among many for managing motivation. Managers in the industry often tend to put reliance on money motives. Because expert says that money is not the sole motivator but it does motivate.

MOTIVES USED BY HABIB BANK LIMITED


Like many other organizations in the country it also uses the money as the motivator. Its management used to give annual increments to its employees on their improved performance.

ANNUAL INCREMENT
Annual increment in pay scale shall, unless withheld ordinarily accrue to an employee in all categories. Now a days performance is the criteria of annual increment in HBL. The HBL management has divided the performances into categories. If an employee is awarded D category he has to leave the organization. And if an employee is awarded C category three years consecutively, then he has to face the same consequences. Performance is measured on the basis of appraisal that is made by managers.

TERMINATION:
I. Services of employees in category 1 may be terminated by competent authority and in case of officers in the executive grade by the board on 3 months notice card on payment of a sum equal to his/her substantive pay for 3 months. II. Provided that the services of the probationary officers may be dispensed with on 1 month notice or on a payment of a sum equal to his/her substantive pay for one month.

III. Services of employees other than those in category 1 may be terminated by the authority on 1-month notice or on payment of a sum equal to their pay for 1 month. IV. An employee who absents himself from duty unauthorized or phase to report for duty with in a period specified in the notice issued to him shall render himself liable to disciplinary action which may lea to his or hare dismissal from HBL service. Such notice shall require the employee to report the duty on or before a date specified their in which shall not be less than 70s from the date of receipt of such notice. The notice shall be dispatched by registered postal acknowledgement due to the last none address on record and shall be deemed to have been duly received by the employee with in a reasonable period after dispatch even if the postal acknowledgement is not returned and employee also failed to report for duty. V. HBL reserve the right to dispense with the services of an employee who is declared unfit for the service by the medical board constituted by the competent authority. VI. The corporation reserves the right of dismissing an employee from service if he is guilty of misconduct, breach of trust on negligence of duty.

RESIGNATION:
1) An employee in category 1 shall not resign from the service of HBL without giving 3 months notice in advance in writing of his/her intentions to do so; failing which he/she shall liable to pay to HBL is sum equal to his/her substantive pay for 3 months.

2) Provided that in case of officer, on probation of 1-month notice or 1 month pay will be sufficient for the purpose of the regulation. 3) Employees other than category 1 shall not resign from the service of HBL without giving 1 month notice in advance in writing of their intention to do so failing which they shall be liable to pay HBL is sum equal to their substantive pay for 1 month. 4) The competent authority may waive or reduce the amount of notice period at its sole discretion in special cases.

RETIREMENT:
1) Every employee shall retire from service: a. On such date after he/she has completed 25 years of service as the competent authority may in the interest of HBL direct.
b. Where no direction is given under clause A) on the completion of the 60th

year of his/her age. 2) The competent authority may, in the interest of HBL re-employee any employees after the date of his or her retirement for such period it may deem fit. Provided that the re-employment of employee shall be subject to such terms and conditions that those admissible to him or her at the time of his/her retirement, as the competent authority may fit. Provided that services of any person who is re-employed after the date of his/her employment on attaining the age of super annotation may be terminated on 3 month notice or in payments of 3 month. 3) An employee who is declared unfit for further service by medical board constituted by HBL for the purpose either at the request of the employee at the instance of the HBL. Such an employee may be retiring from the service by the competent authority.

OPTION TO RETIRE:
An employee may retire his/her option after completing 20 years of continuous service. Now a days, all the organizations are shrinking through out the world so HBL also reducing its branches. For this purpose, first they introduce Golden Shake Hand scheme. Then, now, they introduce Voluntarily Separation Scheme. They wanted to separate 11,000 employees from the organization. And until now 5,000 has availed this scheme.