MANAGEMENT

PROJECT

PRESENTED To:
Miss.Shumila Gul

PRESENTED BY:
Amna Zafar
F07B055

1
INSTITUTE OF BUSINESS
AND INFORMATION
TECHNOLOGY

2
Table of Contents
Introduction 4
 History
 Background
 Present status
 Privatization
 Economic landscape
 Financial highlights
Organization’s profile 8
Branch network
Vision
Mission
Hierarchy Chart 13
Managerial function 14
 Planning
 Organizing
 Leading
 Controlling
SWOT Analysis 15
Decision Making and Policy Making 16
 Centralized
 Decentralized
 Decision Making Process
 Mangers Decisions
Management Styles and Policies 18

3
  Collective Participation in Decision-Making
 Employee Participation
 Delegation of Power
 Control Function
Organization Structure and Design 19
Omnipotent or Symbolic View of management 21
Culture of the organization 21
 Dimensions of Organizational Culture
 The Source of Culture
 How Employees learn culture
 Innovative culture
 Customer-responsive culture
 Focus on individual development
 Trust and openness
 Employee’s Empowerment
 Toleration of Employees Expression
The Environment 24
 Stakeholder relationships
Socioeconomic view 25
Value-Based Management
Managerial Ethics 27
Human Resource Management 27
 Recruitment
 Selection
 Orientation

4
  Types of Training
 Career Development 31

Conclusion/Recommendations 32

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

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Introduction:
Bank is an important institute of an economy. In modern times a strong banking
system is necessary for economic prosperity of a country. Banks are necessary
for maintaining a sound financial position of Government and for running trade
and industry.

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

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Present Status:
The Habib Bank Group is leader in Pakistan’s services industry.
Today, HBL has more than 1,400 branches all over Pakistan and presence in 25
countries across five continents. With a revamped customer oriented philosophy,
we are pursuing new avenues of leadership through innovation, as we gear up to
face the challenges of the new millennium.
A huge network of 1425 domestic branches, with largest bank in Pakistan. And
55 international branches have enabled HBL to provide comprehensive services
that meet customer needs. This has ensured thriving client relationship that forms
the backbone of the Bank’s operations.
Today, HBL plays a central role in Pakistan’s financial and economic
development. It has come a long way from its modest beginnings in Bombay in
1941 when it commenced operations with a fixed capital of 25,000 rupees.
Impressed by its initial performance, Quaid-e-Azam Mohammad Ali Jinnah
asked the bank to move its operations to Karachi after the creation of Pakistan.
HBL established itself in the Quaid’s city in 1943 and became symbol of pride
and progress for people of Pakistan.
Habib Bank has a pioneer in providing the innovative banking services. These
have included the installation of the first main frame computer in Pakistan
followed by first ATM and more recently internet banking facilities in 1425
domestic branches.

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

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

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

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Organization Profile:
Name of Organization: Habib Bank Limited
President and Chief Executive Officer: Zakir Mahmood

Head Office: Habib Plaza, I.I. Chundrigar

Road, Karachi-75650.
HBL Phone Banking: 111-111-425
Product Information: 111-33-44-55
Fax: 2411647
Telex: 20086-20751 HBANK-PK
Website:
Corporate:
www.habibbankltd
.com
Treasury website
www.hblgtr.co
m.pk

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Future Outlook:
For a bank to deliver quality services, it is imperative that technology be an
integral part of all aspects of its operations. At Habib Bank, strategy has been to
utilize cutting edge technology to serve customer efficiently and in a cost
effective manner. HBL strive to accomplish this while maintaining a strong
personalized approach in our customer relationship.
HBL embarked on an ambitious plan in 2001 to revamp its technology platform.
The technology initiative includes:
 Online inter-branch funds transfer
 Alternate delivery channels e.g. POS terminal
 ATM network for cash withdrawal, fund transfer, payment of utility
bills etc
 E-commerce
 Internet banking
 PC based banking for corporate customers
 Automation of treasury and trade finance
 HBL corporate website has recently been revamped and now provides a
customer friendly, information rich and technologically advanced
environment to its clientele.
Enhancement of the Bank’s communications network to provide online
connectivity to:
 More than 200 branches, corporate centers and regional offices in over
30 cities through out Pakistan
 More than 100 ATMs covering most of cities
 Over 1000 nationwide ‘point of sales’ terminal.
 Habib Bank’s corporate email users

Implementation of a Virtual Private Network (VPN) yielding the following

benefits:
 Centralized processing of batch branches offering daily consolidation of
data for customer service and risk management
Implementation of technology in HBL international centers
 As with our other areas of operations, we recognized that at international
centers too, technology is a key consideration for bank to ensure the
competitive edge and maintain effective internal control. To that end

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 significant steps have been taken towards automation and offering
technology related faculties at our overseas centers.

Branch Network

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12
International Operations:
Habib Bank is represented in 25 countries in 5 continents through a network of
55 branches, subsidies and joint ventures. The Bank has one of the most
extensive international networks amongst the emerging market banks. Our ability
to operate successfully in diversified markets and cultures in a function of long
history in international banking- HBL opened first international branch in 1951
and established customer base. Our international presence spans major financial
centers as well as developing countries.
Vision
“To be the premier organizations operating locally and internationally
that provides the complete range of financial services to all segments under
one roof.”

Mission
HBL is a client-oriented bank and its mission is:
“To be recognized as the leading financial institution
of Pakistan and a dynamic international bank in the
emerging markets, providing our customers with a
premium set of innovative products and services, and
granting superior value to our stakeholders –
shareholders, customers and employees.”

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 SEVP

(Senior Executive Vice

President)
Hierarchy of
EVP
of HBL
(Executive Vice
President)
SVP

(Senior Vice President)

VP

(Vice President)

AVP

(Assistant Vice
President)

OFFICERS

Grade1
Grade2
Grade3

JUNIOR
OFFICIER

ASSISTANTS OR
CLERKS

SECURITY
STAFF

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Management Functions:
In HBL the management functions are performed as follow

 Planning
In HBL, decision making is highly centralized because all the decisions
and plans are made at the top level of management.

 Organizing
No autonomy is provided to HBL employees. HBL strives to become a
cohesive and unified force, to offer the customer, a level of service
beyond their expectations. This force is derived from participative and
collective endeavors, a common set of goals and a spirit to share the
glory and the strength to face failures together. And there is also a high
degree of interaction among department managers.

 Leading
The leadership approach established in HBL is team leadership and the
positive attitude of HBL employees towards their job is because of
increasing employee job satisfaction.

 Controlling
HBL impose external control on its employees and the criterion used by
management to evaluate the employees is their performance. Annual reports are
sent to the top level management about each and every employee which evaluates
their performance.

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 Strategic management and
SWOT analyses
• Process
External Analysis

Opportunity
threats

Identify the
SWOT Analysis Implement Evaluat
organizations Formulate
strategies e
mission, goals strategies
and strategies
Internal Analysis

Strengths
weakness

This analysis makes the managers aware of the organizations external and
internal affairs and helps them to grip opportunities and exploits the resources.

Strengths
 An old and well established organization
 Customers are loyal
 It is a well known organization.
 Good reputation

Weakness:
 Organization is quite behind in the field of IT. its employees lack IT
knowledge.
 Out of 1400 branches only 600 branches provide online banking facility.
 Overstaffing is serious problem for the organization.

Threads
 Other banks have high and new IT technology.
 Other banks offer different valuable packages to the customers.

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Opportunities
 Our Internship Program offers promising students with the exciting
opportunity to apply their classroom learning experience to real life
corporate assignments.
 HBL provide good opportunities for the employees in developing their
careers.

HBL is an organization that provides opportunities for its staff to

have a challenging and rewarding long-term career.

Decision Making and Policy

Making:
Decision making process at HBL has following points:

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

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Decision Making Process:

Identification of a
Problem

Identification of
decision Criteria

Allocation of
weights to criteria

Development of
alternatives

Analysis of
Alternatives

Selection of
Alternative

Implementation

Evaluation

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Mangers Decisions:
Mostly at HBL, managers decisions are Rational and intuition base.

Role of Intitution:

Experience-
based decisions

Affect-
Values or
initiated
ethics- based

Intuition

Subconscious Cognitive-
mental based
processing

Types of Problems:
Usually the middle managers face structured problems and they have the
authority to deal with them without consulting the top mangers. Apart from
this programmed or more complex problems are solved by the top
executives.

Management Styles and Policies

At the moment is the management is following the revamping and
reengineering policies. The VSS (voluntary Separation Scheme) is offered to
the employees to reduce the number of employee which is first toward
reshaping of under new management.

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Collective Participation in
Decision-Making:
Department heads meet frequently with each other and discuss problem with
each other if any. They seek advice from each other and also the branch head is
also available to all department heads to review or control the functions of bank.

Employee Participation:
The management is receptive to new ideas like for marketing some facility or
improving any procedure, etc.

Delegation of Power:
Delegation means giving the authority to lower management. In Habib Bank
Limited, top management makes the major decisions. So there is a centralized
control. These are limits of authority approved for different levels of management
at branch level. The branch operation manager and chief manager, takes active
part in the decision-making. The lower level employees can make routine
decisions relevant to their work.

Control Function:
There is a strict control in Habib Bank Limited. There is strict diligence over the
activities of the branch by the regional head quarter and Head office. Both keep
themselves completely informed by the activities of branches through different types of
reports. Rules and regulations are strictly followed. Policies are implemented through
the supreme authorities at each branch. Too keep the works going; back up of each
critical or important seat is given. Few authorized officers duly sign most of documents.
Head office, State Bank of Pakistan and external auditor conduct annual audit to
check that bank operations have been satisfactory completed. Accounts
department strictly controls expenses. Employees are instructed and encouraged
to abide by the rules and follows the policies of bank. Each employee, who
operates computer, has his own password and access to other passwords is
prohibited.

Organization Structure and

Design
The HBL is divided in main group in its organization structure. The one which
performs the core business activities and the second which perform the support

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activities to achieve the business object effectively and efficiently. Further
division of these groups is given below.

HBL is an organization that provides opportunities for its staff to have a

challenging and rewarding long-term career. To this end the Human Resource
Group (HRG) encourages and motivates its employees to excel in the
responsibility that they have in the organization. We believe that creativity and
innovation comes from talent, knowledge and experience and it is our endeavor
to provide and maintain an environment which not only nourishes these strengths
but also provides opportunities for the staff to have a career which has
multidimensional growth opportunities.

In doing so, HBG has been restructuring and redesigning the overall structure of
the organization, which includes rationalization, cutting down the decision layers,
improvement in staff training and hiring professionals and MBAs at entry-level
management.

The overall direction of HRG has been towards nurturing the strengths of the
human capital to its maximum with a defining principal to help create a

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progressive environment and sustain a thorough commitment of our staff towards
focused customer service.

HRG therefore recognizes the need to proactively invest in staff training and
develop courses on a regular basis. Under the umbrella of our Management and
Organization Development Division (MODD) our Management Development
Institute (MDI) with its three fully equipped chapters at Karachi, Lahore &
Islamabad regularly conducts and outsource technical and personal development
courses for our all level of staff enabling them to meet the challenges of the ever-
changing business requirements and customer needs. During 2003, 529 courses,
workshops, skill development clinics and seminars in the disciplines of Service &
Attitude, Market Research & Selling, Management & Communication, Credit &
Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic
Banking Operations and on other diverse subjects were conducted by In / Ex-
House professionally skilled, qualified and certified faculty and industry experts
for 10233 people of senior / middle line management & staff carving 1334 days
training days. There is no budget limit for Training and Education at Habib Bank.
HR Group aims to maintain and further improve the service-oriented culture and
to make employment not only satisfying but also enjoyable.

Omnipotent or Symbolic View of

management
In HBL, managers are also responsible for the success or failure of the
organization but there are also some factors that have great effect on organization
and that type of affairs are out of control of managers.

Culture of the organization:

At HBL we have created a challenging environment that encourages creativity
and commitment. In our pursuit of excellence, we are focused on attracting,
developing and retaining the best talent in the marketplace. Our dynamic culture
offers diverse growth opportunities across Pakistan and in 25 countries around
the world. HBL fosters a work environment where employees can realize their
potential whether locally or in the international arena. Thus, we enable our
employees to achieve their professional goals while keeping in synch with the
bank’s overall objectives.

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Dimensions of Organizational Culture

Attentio
n to
Innovation Detail
Outcome
and Risk Orientati
Taking on

Organizatio
People
nal Culture
Orientati
on Stabilit
y

Team
Aggressiven
Orientatio
ess
n

Attention to Detail:
The employees in HBL are expected to exhibit precision, analyses and
attention to detail.

Outcome Orientation:
In HBL the managers not only focus the
results or the outcomes but also how the
outcome is achieved.
Innovation and Risk Taking
HBL aim is to be proactively responsive to new ideas, and to respect and reward
the agents, leaders and creators of change.

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 Team Orientation
HBL strives to become a cohesive and unified force, to offer you, the customer,
a level of service beyond your expectations. This force is derived from
participative and collective endeavours, a common set of goals and a spirit to
share the glory and the strength to face failures together.

Stability:
The organization tries its best to make such
decision which should not have any adverse
affect on the status of the organition.
The Source of Culture [[[

HBL has a strict rule and regulations and employees learn culture by managers,
trainings are conducted, books and different workshops are organized for the
employees.

Top Management

Organization Selection of Organization’s

Founder Employees culture

Socialization

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How Employees learn culture:
In HBL, the employees learn culture by stories and by rituals.

Innovative culture:
HBL has innovative culture. HBL promotes the new ideas and appreciate its
employees for giving new and innovative ideas. That helps the employees in
achieving their goals and, they try to show their best at job.

Customer-responsive culture
HBL has customer –responsive culture. The employees of the HBL are continues
in their desire to please the customers and provide good service to their
customers and satisfy the needs of customers.

Focus on individual development

HBL focus on individual development, HBL try to create the good culture, in
which every employee can adjust, work properly, learn the new thing and give
best.

Trust and openness

In HBL, top management have full trust on their employees. Mostly employees
are honest and they

Employee’s Empowerment
In HBL, managers have trust on their employees and they want that their
employees also try to make decisions at their own job level.

Toleration of Employees Expression:

In HBL, there is no toleration of employee’s expression. They want work and

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 The Environment

Competitors

Supplier Customers
s Organization

Political
groups

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

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Stakeholder relationships
HBL have very good relation with his stakeholder and try to provide them better
facilities and fulfil their need in proper and good manner.

Employ Custom

Social and
Unions Political

Compet
Shareho Organizat
lders ion Trade and
Industry
Communiti
Associations
es
Supplie Govern

Media

Socioeconomic view
In HBL, managers try to maximise the profits for the organization but as well as
they make decisions and plans for protecting the society. They focus on
development and welfare of the society.

Social responsibility
HBL make the goals and plans for society that gives benefit and they try to do
right ethical decisions in a legal way.

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 Social Obligation
HBL fulfill its economic need in legal way.

Social Responsiveness
HBL make changes in it as the society change. they change with environment
provides the best services.

Value-Based Management

Shared
Organizational
Values

Guide Managers Influence

Shape employee Build Team
Decisions and Marketing
Behaviour spirit
Actions Efforts

Managerial Ethics
In HBL, there are also some rules that tell what is good or what is bad for
organization while taking a decision.

Work specialization

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 HBL has a high degree of work specialization. It gives jobs to its employees
according to their capabilities and their skills. So that they can give their best at
their work in the specific field assigned to them

Departmentalization:
HBL has functional departmentalization.

Chain of Command
In HBL, the decisions are made by top level managers and then these decisions
extended to the employees at the lower level and they work according to these
decisions to maintain this continuous chain of command.

Formalization
The structure of HBL is highly formalized because of high level of
standardized jobs and because their employee’s behavior is guided by the
rules and procedures made by their management.

Human Resource Management

HBL has a well established HRM department which is dedicated for hiring
capable, skillful and well educated employees which are selected through
special selection processes like interviews and written test to ensure that the
most appropriate candidates are hired .It also keeps in view the need and
demands of existing employees.

Human Recruitme Identification and

Resource nt Selection Selection of Competent
Centre Employees
AA

Decruitment

29
 Adapted and competent
Orientation Training employees with up-to-date
skills and knowledge

Performan
Compensati Career
ce Competent and high-performing
on and Developme
Manageme employees who are capable of sustaining
benefits nt
nt high performance over the long term

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

Selection
The diagram below represents the process on which we base our selection.
This gives an overview to potential candidates as to the steps involved in
becoming a part of the HBL team.

We are proud of our ability to nurture individuals and empower them to

hone their talents. Our size gives us the unique ability to provide fast

30
 growth and significant responsibility early on in a career with multiple
avenues to reach the top.

As part of HBL’s human resource strategy, we visit various universities

across the country to induct & groom fresh business graduates every year.
Enthusiastic and talented youth form the backbone of our banking
operations and are nurtured to become future leaders at HBL.

To attract the best young talent, our resorting department employs a pro-
active strategy. We actively participate in campus seminars by giving
presentations that highlight HBL’s background, vision, mission, values,
recruitment & selection process, future career prospects and overall
business strategies.

We hire fresh talent on a permanent basis and offer a wide range of career
opportunities across all functions, including Finance, Marketing,
Operations, Information Technology and Human Resources.

Selection Devices

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 In HBL, the application forms must be submitted by candidate by their
CV and by giving basic information about himself/herself. Interviews are
conducted by top management and evaluate the candidate. Sometime
written test are also conducted.

HBL investigate the background of candidate and physical fitness tests are
used for selection of the candidates.

Orientation
When the new employee is hired the management organizes the orientation
program to introduce the rules, working and culture of organization to new
employee.

Types of Training
HBL have different training programs.HBL organize different training programs
for their employees for updating of knowledge of business and technology. It
may be on the job or rotation of job or in form of lectures.

Career Development
There are great chances of promotion for the hard working employees and
for those who shoe their best performance and achieve the goal effectively
and efficiently.

Employees Performance
Management
In HBL, top management evaluates the performance of his employees that the
employees are achieving their goals or not, what improvement in employees
makes them more successful. It is evaluated after a specific period of time.

Motivation In HBL, the employees are motivated by giving them

bonuses, compensations and other facilities necessary for living a good life that
fulfils their social and the safety needs.

32
Conclusion/Recommendations
No doubt that HBL is the largest bank in the private sector and since its
establishment it has progressed and improved tremendously and has a
customer base exceeding 5 million but it can still advance further if it
adopt new changing IT technologies as there is still room for some
inprovemnets.It should train its employees about the new IT trends.
Moreover certain needs of the employees should also be considered
like bank timings should be acceptable and employees should be given
importance and must be consulted in some decision making processes.
Improved friendly relations are required between the top and the
middle management. This will make the employees work even better
for their organization.

33
References:
 www.habibbankltd.com
 www.habibbankltd.com
 www.hblgtr.com.pk
 www.google.com
 Syed Mussadiq Hussain (Manager
Habib Bank Thoker Niaz Baig
Branch)

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