Background of the study I have selected Soneri bank to study their Human resource development department.

The purpose to select this department is that I can easily get true and valid information through their respected persons because I have some contacts there. Second reason is that the department is not very much mature as compare to the large well developed organizations so I get a better chance to see the lacking of some HRD practices or may be practices are not very mature. History of Soneri bank Soneri Bank Limited, was incorporated in Pakistan on 28 September 1991 as a public limited company under the Companies Ordinance, 1984 with registered office in Lahore. The Bank opened the first branch for operations on 16 April 1992 in Lahore which was followed by Karachi Branch on 09 May 1992. The bank now operates its 200 branch network all over the country including the Northern Areas of the country. The bank considers its employees as the biggest and valued asset. Products and services offered by bank Soneri Bank Limited offers a full range of Retail Banking services. Corporate and Treasury operations, worldwide network of correspondents and a complete range of Trade Finance products make our bank a perfect place to do trade business with. While designing products for our customers, we have taken care of the needs of a variety of customers. Our Consumer Finance schemes and Islamic mode of Banking caters to another niche set of customers with a mission to develop strong banking relationships through syndicate financing and also on standalone basis. Some of our products and services are as below: - Savings Account - Term Deposits - Current Account - Basic Bank Account - Soneri Ikhtiar Current Account - Online Banking - SMS Alert - SME Finance - Agriculture Financing - Lockers - Consumer Finance - Electronic Banking - Retail, Commercial, Corporate and Trade Financing - Syndicate Financing Human resource department Soneri Bank Human Resource Division is responsible to take care of all HR matters of Banks network throughout the country and it fully participates in achieving Banks goals and objectives.

Human Resource development I have visit HRD department of Soneri bank which is located at its main head office, I.I chundrighar road. This department is formed before 5 years, in 2007 and previously their functions done by training and development department. HRD is separate from human resource department but HRD manager reports to HR manager. In banking sector, most of the rules, polices and regulations by the regulator, the state bank of Pakistan. People are our assets Our people are our biggest asset, and we are committed to assist them in exploring and developing their full potentials with an array of employee-oriented policies to facilitate them. As a learning organization, we encourage our people in their pursuit of knowledge through systematic education and professional trainings (in-house and external) and certifications. Our people are groomed and developed through organized job rotations to have enriched and fulfilling careers. Ratio of HR professionals/the number of employees The ratio of one HR professional to the number of employees is 1:25. This clear cut ratio is defined by the state bank of Pakistan. This is very good ratio as to take care employees. The regulator also has strict rules and regulations which have to perform by all the banks. Thus this is good for employees and organization as well. It creates a strong relationship among them which shows employees engagement and they take cares employees concerns.

Employee empowerment At SBL we have defined, Line of Authority Management, which defines rules and regulations for all individual to exercise powers accordingly. Employees can take decisions but its limited to their positions authority and its predefined by the management. Motivation Their motivation philosophy based upon three points affiliation motive, achievement motive and reinforcement theory. Recently they send their managers Bangkok, Thailand for entertainment and to make their minds fresh and especially for relaxation. They also done various activities to take care their employees Their practices; They develop good management and supervision to some extent. They design jobs and organizing work groups to make them as satisfying as possible. They provide feedback to staff about their performance by promotions and annual bonuses. They make effective arrangements for communications and consultation.

Reward system

Employee Reward covers how people are rewarded in accordance with their KPIs and value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The aim of employee reward policies and practices is to help attract, retain and motivate high-quality people. Reward system based upon three basic components compensation, recognition and benefits. Recognition on employees performance is very important to engage them in work and reinforce their energy to perform. Reward system should be fair and transparent to motivate the employees. A key focus of recognition is to make employees feel appreciated and valued. Research has proven that employees who get recognized tend to have higher self-esteem, more confidence, more willingness to take on new challenges and more eagerness to be innovative.

Financial incentives for excellent performance

People feel strongly about it. Pay helps to satisfy many needs (e.g. security, esteem needs, resources to pursue self-actualization). Pay is the subject of much important business legislation (e.g. national minimum wage). It helps attract reliable employees with the skills the business needs for success. Pay also helps retain employees rather than leave and perhaps join a competitor. This practice is very normal I banking sector. For most employees, the remuneration package is the most important part of a job and certainly the most visible part of any job offer. There are many methods of financial reward in soneri bank. Commission Performance-related pay Bonuses Shares and options Benefits in kind (fringe benefits) Because pay is a complex issue, there are several ways in which businesses determine how much to pay and which methods to use: Job evaluation: it is done here and is usually the most important factor which is involved in the job being paid and it compare with similar jobs in the same industry. Fairness: they are fair to pay needs to be perceived and be seen to match the level of work.

 Negotiated pay rates: the rate of pay may have been determined elsewhere and the business needs to ensure that it complies with these rates. This activity is done especially for managers and seniors executives. Market rates: this is an important influence to select the pay rate. If a business tries to pay below the market rate then it will probably have difficulty in recruiting and retaining suitable staff. In soneri bank, their pay is at industry median. Individual performance: this is also done here. It increasingly businesses include an element of performance-related reward in their pay structures. In some departments such as sales, the major part of employees pay is depend upon the achievement of their targets. However, it is important to remember that pay is only one element of motivation and will work best where management also gives attention to other areas. Revision of Salaries and benefits Employees salaries, perks and benefits are reviewed periodically and updated to align them in accordance with the market. In Soneri Bank Ltd, it is purely based of the philosophy of Pay for Performance. Their pay scale is at market average. Information sharing culture Organizational Culture Organizational culture can be thought of as a relatively rigid tacit infrastructure of ideas that shape not only our thinking but also our behavior and perception of our business environment. It effectively establishes a set of guidelines by which members of an organization work and how those organizations are structured. Also we tend to resist change rather than embrace it. Knowledge and Information Knowledge is often seen as a rich form of information. This differentiation however is not terribly helpful. A more useful definition of knowledge is that it is about know-how and knows-why. Knowledge Management There are many definitions of Knowledge Management. Knowledge Management is a business philosophy. It is an emerging set of principles; processes, organizational structures, and technology applications that help people share and leverage their knowledge to meet their business objectives.

This puts focus and responsibility on the individual, the knowledge worker and on the nature of knowledge management. Also critically it is about meeting business objectives. Knowledge Management is not an end in its self. It is also fundamentally about sharing knowledge and putting that knowledge to use. The most effective way to create a knowledge sharing culture is first to start to practice it at every level. The higher up the organization the more effective they will be in changing the culture but even if they are low down the hierarchy they have an influence. Second, put in place the knowledge sharing technology and train and educate people in its effective use. People with the appropriate knowledge sharing mindset and the appropriate knowledge sharing technology to support them will rapidly bring about a knowledge sharing culture that helps them better meet your business objectives.

In soneri bank, what I personally feel that knowledge management is not mature but the information sharing is here. The transfer of news is very fast among different branches whether news are positive or negative but management didnt Manage it properly. Job rotation In order to further grooming and learning, a robust system of job rotation is implemented thereby, every employee especially in branches, is rotated and given new assignment every after three years. Job rotation may not apply among different departments in soneri bank because their expenditure related to every position is define and heavy such as ( e.g; if a specialist of finance may transfers to human resource department then a complete training is required). Specific technical skills / expertise or specialists are required and hired employees for some specific technical skills / expertise or specialists where heavy expenditures are involved. Employees empowerment is the power to take decision by them at your work place. In banking sector, SBL have defined the Line of Authority Management, which defines rules and regulations for all individual to exercise powers accordingly. To some extent, employees have power but its very rear. Enhancing employee satisfaction Money is not only one required factor to satisfy employees but culture of the work place is also very important 1. Measure Employee Engagement; Start measuring employees' passion about work and the work environment by issuing an employee satisfaction survey. Employee satisfaction surveys using a scale of agreement (a Likert Scale) provide a quantitative measurement that can be combined with open-ended comments to identify opportunities to make employees happy. There are many employee engagement activities

2. Identify What Employees Like; By gathering compliments through employee satisfaction surveys in addition to concerns, your company can find out if its engagement efforts make a meaningful, lasting contribution to employees. This is truly absent here. 3. Help Employees See the Big Picture; Employees wants to feel that they are contributing and making a difference. Help your employees to see the big picture and how they contribute to a functioning whole. This will also empower employees to make decisions and improve employee satisfaction. they realize their employees that they are major partto achieve the goals. 4. Use Training to Increase Confidence; Managers who cut training budgets to save costs do not understand how service delivery and morale can suffer as a result. Employees need training to do their job confidently and to facilitate career advancement within the organization. They give them proper training and its must by the rules and regulations of SBP. 5. Establish Mentoring Programs; They train and encourage seasoned employees to be mentors. A mentoring program can facilitate dynamic skill growth through an organization and foster a sense of community while improving employee satisfaction and employee engagement. 6. Promote Team Building; they encourage team building activities among departments to create trust and acceptance. Strong, loyal teams provide one level of acceptance, and teamwork between departments provides another. 7. Build a Supportive Environment; the environment is supportive to some extent. If dissatisfaction with wages and benefits masks problems that will not further entertain by management. Employees may need help with coping skills, problem-solving skills, tactics for handling difficult situations, or expressing their personal feelings. 8. Don't Be Afraid to Tell the Truth; Respect your employees through degrees of transparency. Communicate how your business is really doing on a quarterly or semiannual basis. Give your employees information to understand shifts in corporate policy due to the economic or competitive environment. This is lacking because employees feel reluctant to tell the truth. 9. Retrain or Get Rid of Bad Managers; one bad manager can pollute multiple layers of an organization. Poor managers bring down employee morale, which spills over into the engagement level of customers. 10. Recognize Employee Contributions - Recognition from a supervisor of at least a rank above an employee makes a meaningful, engaging difference in employee morale and employee loyalty. Employee recognition is here. 11. Use Technology to Manage Employee Engagement - Technology is available to help you go beyond a single employee satisfaction survey annually or an email link on the company Intranet. Enterprise Feedback Management systems can be used to centralize employee satisfaction surveys and employee feedback and track both qualitative and quantitative information. Third-party systems provide for employee anonymity, which encourages open and honest employee feedback. This activity is not present.

Problem sharing culture They have an open door policy for all the communications and problem sharing.this is policy by SBP They addressed employees problems whether its related to work place conflicts and their personal. If employee is not in piece mind how he will perform accordingly. Problems related to work place are addressed but employees personal problems is not as addressed as they are important.

Investment in Training and development As far as the importance of training is concerned, they invest Rs.32 M for training and they arranged approximately 165 training sessions which includes both technical and soft skill training. A full fledge training centers are in operation in Karachi and Lahore where employees and new recruits are provided training through the year. Training is just one possible way to organize and implement learning processes in organizations and not always the most effective one. Training and development have come to be viewed as lifelong activity, rather than the front end acquisition of qualifications. As a result, the focus of concern has shifted from what the trainer does, to what the learner requires. The ultimate aim of the training and development process has been characterized as the creation of the learning organization, constantly reviewing its mistakes and successes and adapting its activities appropriately. Career development The main thrust of HR Division is to recruit the best talents available, train and develop them through in-house and out-side training programs and to keep them motivated. At Soneri Bank, we have worked hard to earn a reputation as a great place to work. We are committed to being an inclusive company where all people are treated fairly, recognized for their individuality, promoted based on performance and encouraged to reach their full potential. Trainee Officer Program is our systematic recruitment efforts carried out twice a year to allow fresh graduates to be able to launch their banking careers with Soneri Bank. These graduates are recruited in two batches in a year through Aptitude Test, followed by an interview of the applicants successful in the Test. These applicants are put through a rigorous training of six months which includes both classroom training and on-the-job training in actual work environment. After completion of the training successfully, the Trainee Officers are inducted in regular Officer Grade. Trainee Officers will be imparted in following areas General Banking Corporate Investment Credit Risk Management Compliance

Treasury Management Audit

Performance appraisal Performance appraisal is an important tool to ensure that goals and targets are met. Hence, a comprehensive Employee Performance Appraisal system is in place whereby each employee is subject to be appraised and his/her input is also obtained during the appraisal process. Based on employees performance and talents, promotion and annual increments are decided. In addition, employees achievement in meeting their goals and targets and acquiring professional education is also recognized through cash awards and appreciation. A performance appraisal or performance evaluation is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior and accomplishments, potential for future improvement, strengths and weaknesses, etc. Methods To collect performance appraisal data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. On annual basis They typically conducted annually. They dont go for interview for performance appraisal. They can improve it and providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions.PA is often included in performance management systems. Performance management systems are employed to manage and align" all of an organization's resources in order to achieve highest possible performance. How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary organizations. Benefits Some applications of PA are performance improvement, promotions, termination, test validation, and more. While there are many potential benefits of PA, there are also some potential drawbacks. For example, PA can help facilitate management-employee communication; however, PA may result in legal issues if not executed appropriately as many employees tend to be unsatisfied with the PA process. PAs created in and determined as useful in the United States are not necessarily able to be transferable cross-culturally. Promotion from within By Internal Job Watch, we fill the gaps from the internal resources and if it doesnt, we hire the same from external rescues.

"It's important for companies to promote from within. Otherwise, there's no career path for the people there and it forces (employees]) to constantly be job hunting because they know they're not going anywhere in that company While leadership development programs are great for identifying existing talent within your ranks, it's also a good idea for business owners to establish an overall company culture of promoting from within If you're going to promote from within, it's essential to have a specific plan for doing so. This is called succession planning, the process of determining key personnel who will be retiring or moving within the organization and finding internal leaders who can replace them. Deciding the skills that the organization will need in future leaders is the first step in successful succession planning. It is important to realize that what constitutes effective leadership today is not necessarily what will be needed tomorrow. Succession planning Succession planning is very important for the employees motivation and recognition. In soneri bank, they prefer to promote employees from within. Whenever any post is vacant, it publish internally on companys private website then employees may apply for this post with respect to the qualification and experience this job is required and it matches with employees profile. They fill their gaps from the internal resources and if it doesnt, they hire the same from external resource. Identifying up-and-coming leaders is done in succession planning. Employees who show initiative, a strong work ethic and visionary thinking aligned with business objectives are clear picks. But don't overlook lower-profile staff members. Finding the organizations next leaders requires close attention to every employees performance record. Conferring with promising employees to learn their career goals, strengths and weaknesses is the third step in succession planning. Management, HR department and the HRD department should be involved in this process using both structured evaluation techniques and informal discussions. They provide training and mentoring opportunities to develop the potential leaders. Continuing education, cross-department transfers, additional responsibilities and special projects are tools for developing their natural leaders. Some companies conduct succession planning in a low-key, under-the-radar fashion. Others make it well known that there is competition for future promotional opportunities and challenge the ambitious individuals to display their best efforts. Succession planning is a key factor in reducing a companys risk exposure, improving morale and productivity and planning for future growth. It should permeate the organization from top to bottom, constantly seeking out internal leadership and cultivating the next generation of management.

Equal employment opportunity

Equal employment opportunity and sheer objectivity is the base of our recruitment efforts. We believe in constant learning and development of our employees, maximum facilitation for them for all their needs, extremely competitive compensation and benefits for their better standard of life, fair and equal treatment, and providing them with an excellent work environment. They encourage male and female both on equal basis and promote them depend upon their performance avoiding discrimination among gender.

Conclusion HRD encompasses the broad set of activities that improve the performance of the individual and teams, hence the organization develop when the human resource develops. I have discussed various elements of HRD which really works in soneri bank and which are not in practice much. HRD is lifeblood of any organization.

Quesionere
(filled by the HRD manager of soneri bank, named JAFFAR ALI) What is the reward system? Is it based upon excellent performance or experience and seniority? Answer:Employee Reward covers how people are rewarded in accordance with their KPIs and value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The aim of employee reward policies and practices is to help attract, retain and motivate high-quality people. In Soneri Bank Ltd, it is purely based of the philosophy of Pay for Performance. How much you invest on training and development? How many times you arranged training sessions in the last year? These trainings are technical or of soft skills? Answer:In 2011 we invest Rs. 32 M for training and we arranged approximately 165 training sessions which includes both technical and soft skill training.

Did your organization influence by the last recession and you go for downsizing? Answer:Yes What are the employee share ownership plans? Answer:Please elaborate it for me. Is their Promotion from within or looking for experience and talented employees from other banks? Answer:By Internal Job Watch, we fill the gaps from the internal resources and if it doesnt, we hire the same from external rescues. Is their decentralization of decision making and empowerment? At what extent employees have right to take decision on the job?

Answer:-

At SBL we have defined, Line of Authority Management, which defines rules and regulations for all individual to exercise powers accordingly. Are employees are welcome for discussions and share their problems? Communication system is open or closed? Answer:At SBL we have open door policy. Does you evaluate the outcome of HRD programs? Answer:Yes. The pay scale is higher than average industry salaries or not? Answer:Our pay is scale is at market median. Is team working encouraged within the bank and to what extent? Are they self-managed? Does job rotation take place within departments? Answer:Yes, however Job rotation may not apply to: Where specific technical skills expertise or specialists are required and Hired for some specific technical skills / expertise or specialists where heavy expenditures are involved. Does recruitment system is internally efficient or its outsourced? Answer:All recruitment is done internally. How you motivate you employees to bring out their true potential? Answer:I usually consider three points, Affiliation Motive, Achievement Motive, through reinforcement.

What is the ratio of one HR professional to the number of employees? Answer:SBL HR to line ratio is 1:25

A Report on Human resource development practices In Soneri bank limited

Prepared by; Misbah aslam Submitted to; Sir Tanzeem Qadari