ASSIGNMENT

HUMAN RESOURCE
MANAGEMENT

Submitted by:
1. Syed Shafay 2k20-BBA-183
2. Hammad 2k20-BBA-65
3. Owais Aslam 2k20-BBA-134
4. Salman Ahmed 2k20-BBA-163
5. Zain Mustafa 2k20-BBA-205
 To: Ma’am Seema Memon

INTRODUCTION of HBL

HBL was the first commercial bank to be established in Pakistan in 1947. Over the
years, HBL has grown its branch network and become the largest private sector
bank with over 1,500 branches and 1,300 ATMs across the country and a
customer base exceeding five million relationships.

The Government of Pakistan privatized HBL in 2004 through which AKFED

acquired 51% of the Bank's shareholding and management control. HBL is
majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of
the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is
owned by the general public i.e. over 170,000 shareholders following the public
listing that took place in July 2007.

With presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in
Nepal, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the
largest domestic multinational. The Bank is expanding its presence in principal
international markets including the UK, UAE, South and Central Asia, Africa and
the Far East.

Key areas of operations encompass product offerings and services in Retail and
Consumer Banking. HBL has the largest Corporate Banking portfolio in the country
with an active Investment Banking arm. SME and Agriculture lending programs
and banking services are offered in urban and rural centers
HBL is currently rated AA (Long Term) and A-1+ (Short term). HBL is the first
Pakistani bank to raise Tier II Capital from external sources.
Human Resource Activities at HBL:

HR at HBL operates as a strategic partner to their businesses and focuses on

driving performance excellence by hiring, developing and retaining the best
talent. With a long-term focus on aligning people strategy with the overall
organizational strategy, they strive to build a flexible, engaging and progressive
culture. Structured into nine key roles, HR at HBL contributes through the
following units:

Talent Acquisition: Sources, screens and recruits the best talent in the market,
while ensuring adherence to inclusive hiring policies.

Relationship and Talent Management: Prioritizes employee engagement and

development in partnership with business units and line managers to drive
business results, promote career growth and maximize employees’ potential.

Learning and Development: Designs and develops need-based interventions to

enhance capabilities and skillsets to cater to the dynamic business environment.

HR Operations: Ensures seamless execution of daily HR transactions essential to

maintaining a workforce.

Rewards and Policies: Develops and implements policies and reward structures to
motivate and engage employees to consistently drive performance and achieve
organization’s goals.
Organizational Development: Undertakes a systematic approach to assessing and
improving all employee-related processes and structures to enhance
organizational efficiency.

HR Technology and Data Analytics: Focuses on digitization of HR processes

through design and implementation of tech-related projects and solutions to
support evidence-based decision making.

Ethics and Conduct: Identifies, measures, monitors and implements the ethics
and conduct framework at HBL in line with the State Bank of Pakistan guidelines.

Employee Relations: Acts as an arbitrator and oversees the resolution of

grievances, misconduct and/or disciplinary violations by employees in a fair and
impartial manner.

 The HRM department plays an important role in value of any company. HBL
has very active and one of the best HR department in Pakistan as well as
worldwide.

Hiring Activities:

 HBL Recruitment Activities refers to the process of identifying, attracting,

interviewing, selecting, hiring and onboarding employees. In other words, it
involves everything from the identification of a staffing need to filling it.
 In hiring process first of all planning session is occurred, in planning session it is
determined that which HBL Section will have to fill and how to fill. If there is a
 vacancy of executive job then succession planning is done for filling that vacant
place.

Hiring Structure:

These are 15 essential steps of the HBL Hiring Structure, we’ve listed them here;

 Identify the hiring need

 Devise a recruitment plan
 Write a job description
 Advertise the position
 Recruit the position
 Review applications
 Phone Interview/Initial Screening
 Interviews
 Applicant Assessment
 Background Check
 Decision
 Reference Check
 Job offer
 Hiring
 Onboarding

Hiring Policies:

 Meritocracy is an integral part of HBL’s recruitment policy. HBL’s 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:

1. Educational Background
2. Skills and Competencies
3. Abilities and Attitude
4. Experience
5. Interpersonal / Communication skill

• HBL hires 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. HBL is proud of
its ability to nurture individuals and empower them to hone their talents.

• As part of HBL’s human resource strategy, HBL visits various universities

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

• To attract the best young talent, HBL’s resource department employs a pro-
active strategy. HBL actively participates in campus seminars by giving
presentations that highlight HBL’s background, vision, mission, values,
recruitment & selection process, future career prospects and overall
business strategies.
• Selection board goes through those CVs and selects those candidates which
initially fulfill the criteria of selection board. After prescreening the HBL
selection board short lists the candidates who are considered most suitable
for job at initial level on the basis of their resume

Hiring Process:

In Hiring Process first of all planning session is occurred. After planning it is

analyzed that which position is going to be filled and the requirement is analyze
by job analysis.

 Job Analysis:

Job analysis is very important as job analysis information is used in Selecting

and Recruiting, Compensation, Performance appraisal, Training and in
Resolving other issues which HBL faces. HBL takes Job analysis services from
Sidat Hyder Morshed Association (SHMA) which is the biggest HR consulting
firm in Pakistan. The methods which are used in collecting job analysis
information are

• Individual interview method.

• Questionnaires method
• Observation method.

 Job Description:

• After getting job analysis information the next step is to describe job
description which contains the points of Job identification, Job summary,
Chain of command, Responsibilities and Duties, standard occupational
classifications and standard of performance and working conditions.
 • A job description is a written statement of what will the job holder do, how
it is done, under what conditions it is done, and why it is done. An example
of job description for a Benefits Manager is provided. HBL provided this
method to their employees they facilitate them.

 Job Specifications:

• After formulating job description the next step taken is job specification in
which the traits of employees are defined who are assumed suitable for the
job.
• Identifies the knowledge, skills, education, experience, certification and
abilities needed to do the job efficiently as HBL specialized their employees
through training and HBL take more work from them and they give good
response to organization and give work efficiently.
• HBL used both skill & Qualification. HBL need only those employees who
are skilled or qualified.

RECRUITMENT

 Identify Candidates:
HBL identifies its candidates by developing the criteria of job description and
job specification and acting upon these criteria on job vacancy ads are spread
through different Medias like newspapers and internet.

 External Searches
HBL uses outside sources for recruitment which are:
 • Advertising:
1. Newspapers (Daily Jung, The-Nation, Dawn etc.)
2. Trade and Professional Journals (Aurora Magazine)
3. Internet job sites (rozee.pk)
4. HBL also uses their Own Website for Recruitment.

 External Sources of Candidates:

HBL uses three forms of employment agencies: public or state agencies, private
employment agencies, and management consulting firms.

1. Sidat Hyder Morched Association works for outsourcing for HBL.

2. College recruitment
3. Employee referrals
4. Walk-ins

 Finding Internal Candidates:

1. Job Posting
2. Rehiring former employees
3. Final Selection within the Organization

• Job Posting:
Related to job’s advertisement, HBL posted the job opportunity in their own
personal internal website.

• Rehiring Former Employees:

It is an internal hiring source. Rehiring the former employees is the process in
which HBL rehires the former employees. But this process is practiced very rarely.
• Final Selection within the Organization:
After going through all the processes the best candidates according to HBL’s
selection boards are selected.

• Employee Referrals:
One of the best sources for individuals who will perform effectively on the job is a
recommendation from a current employee. Because employees rarely
recommend someone unless they believe that the individual can perform
adequately.
HBL mostly hire those candidates who’s under employees referrals due to
financial records because the records are so risky. And employee referrals may
also minimize an organization’s desire to add diversity to the workplace.

SELECTION
 Selection Process:
This process involves selecting the employees by follow the eight steps that
include the Initial Screening Interview, Completion of the Application form,
Employment test, and Comprehensive Interview, Background Investigation,
Realistic Job Preview, Conditional Job Offer, Medical /Physical Exams,
Permanent Job Offers.
- Selection process of HBL is written test followed by panel interview.
- HBL prefer Test & Interview conducted while doing selection of new
employees.
The diagram below represents the process on which HBL’s selection is based. This
gives an overview to potential candidates as to the steps involved in becoming a
part of HBL team.
 Pre-screening and Short listing:
Selection board goes through those CVs and selects those candidates which
initially fulfill the criteria of selection board. After prescreening the HBL selection
board short lists the candidates who are considered most suitable for job at initial
level on the basis of their resume.

 Test/ Interview:
In this process short listed candidates are called for test and interview according
to nature of their applied jobs.

• Modes of Interview:

Panel interview
Structured sequential interview
Types of questions:
- Situational
- Job Related
- Stress
- Puzzled Questions

• Selection Interview:
Formats used in selection interview:
- Structured/Directed
- Unstructured/Non directed

HBL conducts Selection Interview for the short listed candidates. A selection
interview is the procedure designed to predict future job performance on the
basis of applicant’s oral responses to oral inquiries.

 Final Selection:
After going through all the processes the best candidates according to HBL’s
selection boards are selected.

Compensation Activities at HBL:

HBL focus on attracting, developing and retaining their employees by offering

market competitive compensation system. HBL has well established and one of
best compensation system in Pakistan.
According to performance, each employee gets benefits and compensation.
Employees are paid in two forms

 Direct payments
 Indirect payments

Compensation Policies:
There are certain aspects that HBL considered while designing compensation
policies:
1. Internal consistency in compensation package
2. Market competitiveness in compensation system
 3. Employee contribution in pay structure

 HBL does not follow “one size fits all” policy for paying to its employees. HBL
designs compensation policies while taking into consideration of such factors
like Internal Consistency of Pay Structure, Market Competitive Pay System,
information of market and competitors. HBL believes that by taking
information of all aspects effective and fair policies can be designed by policy
makers.

 Along with that, HBL considers three aspects as important, these are
performance of employee, and his /her previous performance appraisal and
what pay is currently prevailing in market for specific job family. On the bases
of these factors HBL set three categories of employees named alpha, beta and
gamma categories. Employees are also divided into three categories, one with
“outstanding” performance, previous performance appraisal and knowledge
and skill set are put into Alpha category. One with a little below in all above
criteria than employees of Alpha category is put into Beta category and all
others into Gamma categories. In this way all employees are treated and
compensated fairly in compliance with policies of company.

 HBL has a little different policy making procedure for compensation but it
keeps into consideration that its pay rates does not fall below or above of the
market pay rates. It means it follows market match policy in setting pay rates.

Compensation Structure:

There are certain plans and structures that HBL follows;

 Merit Pay Plans: HBL follows Merit pay plans that are based on performance
evaluation of employees. Merit pay plans can be defined as pay increases
 based on performances. HBL prefer merit pay to motivate future performance
because they give merit pay for excellent efforts or results. HBL`s gives merit
pay with addition to fixed salary to its employees.

 Incentives Plans: Incentives plans are also offered on the bases of behavioral
encouragement plans. Incentive or variable pay is defined as compensation,
other than base wages or salaries, which fluctuates according to employee
attainment of some standard, such as a pre-established formula, individual or
group goals, or company earnings. Incentive pay are onetime payment for
attaining some standards. Incentive pay plans are divided into three
categories;

1. Individual incentive
2. Group incentive
3. Companywide incentive.

 Person Focused Pay: Person focused pay plans generally reward employees
for acquiring job related competencies, knowledge or skills rather than for
demonstrating successful job performance. HBL specially use person focused
pay to keep their employees up to date with new software relating to banking
sector or acquiring new knowledge/degrees like HBL rewards employees for
doing MBA/ACCA etc.

 Performance Appraisal at Habib Bank Limited:

Performance appraisal, also known as employee appraisal is a method by

which the job performance of an employee is evaluated. Performance
appraisal is a part of career development. Performance appraisal at HBL is a
structured formal interaction between a subordinate and supervisor. At HBL
the formal performance appraisals are generally conducted annually for all the
 staff. Each staff member is appraised by their line manager. Directors are
appraised by the CEO, who is appraised by the chairman.

Compensation Rewards:

 HBL offers commissions along with pay to those employees who are directly
involved in sales and marketing activities of company. These commission plans
vary according to job duties and responsibilities and they are paid periodically
to the deserving employees.

 Employee Benefits:
There are three types of employee benefits and these are:
1. Discretionary benefits
2. Employer-sponsored retirement plans and health insurance programs
3. Legally required benefits

 Discretionary benefits which HBL is offering to their employees are protection

program and paid time off services. In protection program they give their
employee health and safety insurance and in paid time off they offer sabbatical
programs like they give them opportunity that in evening time you can join any
institute for further education. And the services which HBL bank is offering to
their employees are employee assistance and family assistance services.

 The retirement benefits which HBL is providing to their employees are

provident and gratuity funds. Gratuity fund is part of salary that is received by
an employee from his/her employer in gratitude for the services offered by
the employee in the company. HBL pays retirement benefits in the form of
lump sum payment (50% of the employer contribution and 50% of employee
 contribution) at the time of retirement. After that they don't give them any
monthly payment as pension or in the form of annuity.

 HBL is providing life and health insurance coverage to its all employees even if
they work for one day and next day he is dead then he is covered under life
and health insurance. If any employee in HBL had borrowed loan and in case of
death of employee whole loan is covered and also bank will give 7.5lacs to
his/her family.

 Group insurance plan is also workable in HBL bank.

 HBL bank believes that providing benefits along with pay to employees give
them motivation to work more for organization and in if employees are
motivated then they can perform more work which ultimately are beneficial
for whole the organization and also benefits make them more committed to
their work because they are deserving.

CONCLUSION

The Compensation System of HBL values the performance of employees most. It

has a direct relationship with employee motivation and performance. It includes
extrinsic as well intrinsic compensation factors for employees. Extrinsic benefit
plans plays an important role in developing positive perception of an employee
towards its organization and towards its work. Instruments of intrinsic factors
have a profound impact upon an employee’s loyalty and commitment. In addition
to that it is helpful in employee retention as well as in reducing organization’s
turn over. Intrinsic factors play the role of motivators for the employees and
associate them with their job and organization. They feel important and consider
their performance as organization performance and image of organization as their
own image.
Thankyou 