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ACKNOWLEDGEMENTS

The authors have been blessed by considerable assistance from

many people on all aspects of preparation of this project and its
supplements. We are, of course, responsible for what eventually appears
between the covers, but the insights, corrections, contributions, and
prodding’s of others have greatly improved our manuscript. The people
we recognize here all have a strong commitment to students, to the IS
field, and to excellence. Their contributions have stimulated us, and
frequently rejuvenated us during periods of waning energy for this
project.

We would like to recognize the efforts of the many faculty and practicing
systems analysis who have been reviewers of the several drafts of our
manuscript. We have tried to deal with each reviewer comment, and
although we did not always agree with specific points, all reviews made
us stop and think carefully about what and how we were writing. The
reviewers were:

Finally, we have been fortunate to work with a large number of

creative and insightful people at AGRICULTURE UNIVERSITY and HABIB
BANK LTD, who have added much to the development, format, and
production of this project. We have been thoroughly impressed with their
commitment to this text and to the IS education market.

These people include: KHURAM SHEHZAD, Vice Chancellor (Agriculture

University OF FAISALABAD), MISS. TASNEEM (project manager
management sciences) and Mr. MUHAMMAD ALI SHAH, Human Resource
Manager (HABIB BANK LTD, Faisalabad).

The writing of this text has involved thousands of hours of time

from the authors and from all of the people listed above. Although our
names will be visible associated with this project, we know that much
credit goes to individuals and organizations listed here for any success
this project might achieve. It is important for the reader to recognize all
the individuals and organizations who have been committed to the
preparation and production of this project.

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MISS. TASNEEM
Project Manger
AGRICULTURE UNIVERISY FAISALABAD.

Madam,

We present to you this information of HABIB

BANK LTD, as part of our course, for the project. We

would like to thank you for giving us an opportunity to

practically implement our knowledge. We present to

you all the information about organization. Kindly

overlook any mistake and also correct these mistakes

that we may have made in this project.

Thanking you.

Yours sincerely,

Mohsin Ali Sabir

Zeshan khawar
Farhat Gafhoor
Komal yousaf
Uzma Aziz
Sadia Tabassum
Moomna Shahzad
M.B.A 3rd SEMESTER
University Of Agriculture

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 WE DEDICATE THIS
HUMBLE EFFORTS

TO

INCLUDEPICTURE "http://images.google.com/images?q=tbn:4-IKZS

OUR LOVING PARENTS

AND
OUR GREAT TEACHERS

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 History
HBL established operations in Pakistan in 1947 and moved its head

office to Karachi. Our first international branch was established in

Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to

commemorate the bank’s 25th Anniversary.

With a domestic market share of over 40%, HBL was nationalized

in 1974 and it continued to dominate the commercial banking sector

with a major market share in inward foreign remittances (55%) and

loans to small industries, traders and farmers. International operations

were expanded to include the USA, Singapore, Oman, Belgium,

Seychelles and Maldives and the Netherlands.

On December 29, 2003 Pakistan's Privatization Commission

announced that the Government of Pakistan had formally granted the

Aga Khan Fund for Economic Development (AKFED) rights to 51% of

the shareholding in HBL, against an investment of PKR 22.409 billion

(USD 389 million). On February 26, 2004, management control was

handed over to AKFED. The Board of Directors was reconstituted to

have four AKFED nominees, including the Chairman and the

President/CEO and three Government of Pakistan nominees.

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 ALL ABOUT
HABIB BANK LTD.
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 1,450 branches across the country and a

customer base exceeding five million relationships. With a presence in 25

countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria,

Kenya and Kyrgyztan and representative 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 Banking. HBL has the largest Corporate Banking portfolio in Pakistan

with an active Investment Banking arm. SME and Agriculture lending

programmers and banking services are offered in urban and rural centers. In

the UK and GCC, HBL focuses on trade finance and remittances for the South

Asian diasporas in addition to basic banking facilities.

HBL has always been a bank and a brand for the masses, with a history

that is inextricably linked with the history of Pakistan itself. As it continues to

grow, both locally and abroad, it strives to embody its brand personality:

honest, approachable, inclusive.

HBL is currently rated AA+ (Long term) and A1+ (Short term)*. It is the first

Pakistani bank to raise Tier II Capital from external sources.

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OUR VISION:
“Enabling people to advance with
confidence and success.”

OUR MISSION:
“To make our customers prosper, our staff
excel and create value for shareholders.”

OUR VALUES:

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“Our values are the fundamental
principles that define our culture and are
brought to life in our attitude and
behaviors. It is these values that make us
unique and unmistakable.”

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CORPORATE STRATEGIES IN HBL

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Strategic Path:-

From the very beginning the main focus of

the management of HBL is the implementation of growth

strategies. During the entire period of continuous straggle they

adapted almost all types of strategies according to situation and

market demand of that time except restructuring of defensive

strategies. HBL never faced any type of liquidation, bankruptcy,

sale or removal of any business unit. Their main strength is to

avoid unsecure financing. It is big organization that ever during

their dark periods of straggle; they never lose their market share.

If we talk about GROWTH STRATEGIES they are as followed

Incremental Growth:-

HBL’s key areas of operations

encompass product offering and services in retail and consumer

banking. They introduce their products to expand their client’s

base by bringing innovation and improving the channels of

distribution. They put their all efforts to reduce the business and

make their services accessible for all customers.

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International Growth:-

With a presence in 25 countries

subsidiaries in Hong Kong and the Uk, affiliates in Nepal, Nigeria,

Kenya and Kyrgyzstan. Representation 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.

Merger:-

HBL merged “ Standard Bank” in earlier times

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 BUSINESS STRATEGIES
“Models of Business Strategies”

Buston Consulting Group Model: BCG

HBL is found in the upper left-hand quadrant of BCG matrix. It

offers excellent profit and growth opportunities. It can generate

enough cash to fund its own expenses. Sometime only National

Bank in Pakistan Creates Problem for HBL but overall it is

dominant.

Miles & Snow:

HBL is a combination of Defender & Prospector

Analyzer. It is having stable and predictable environment and

pursues low- cost opposition, focusing on efficiency through

standardized jobs, formalization and centralization. Environment

of HBL is dynamic they focus on innovation & adaptation. They

prefer to invest in R & D and marketing to advertise their

products either through TV ads or some others sources.

Porter’s model:

If we talk about HBL in porters perspective, they are

implementing

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“BEST-COST PROVIDER STRATEGY”

They give their customer more value for the money they are

spending to satisfy them in a props way. They focus on

innovation as well as low cost.

Its is also because they believe if they facilitate their customers,

ultimately will get return in future.

HBL’s products cover all the customers belonging from various

classes. A salaried person having 3 to 5000 and rich industrialist

are entertained equally in HBL.

Intensive Strategies:-

HBL focused on all 3 Strategies in

Different periods to get more return. Now days they think the

need to implement market pares-ration Strategy. Because of

growing no of banks opening in Pakistan.

HBL played and important role to flourish the banking sector by

introducing their products all over the world especially in

Pakistan. In this process of wide coverage they follow market

development strategy.

Diversification Strategies:-

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 HBL is mainly focus on

related Diversification to provide services and contribute in high

self esteem of their customer.

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HBL’s all strategies are directly matched with its vision with is;

“ENABLING

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 PEOPLE

TO

ADVANCE

WITH

CONFIDENCE

AND

SUCCESS”

They are successful in providing their desired value &

importance to their internal as well as external customers.

HBL proved that its objective is not to bring profit only but

to enhance the satisfaction and improve the life style of their

stakeholders also.

INTRODUCTION TO HR DEPARTMENT

&

FUNCTIONS, SUB-UNITS OF HR

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HR department of HBL is one of the oldest department in

Pakistan. It is famous because of its training institutes, which are

3 in Pakistan.

 Karachi

 Lahore

 Islamabad

HBL’s training institutes provides timely & useful training to their

own employees and employees of other Banks also.

It has trained the employees of UBL, MCB & ABL till now.

Mainly 2 types of training are provided to the employees,

The Role Of Human Resource Management

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 Human Resource Management (HRM) is the function within an organization that

focuses on recruitment of, management of, and providing direction for the people who

work in the organization. Human Resource Management is the organizational function

that deals with issues related to people such as compensation, hiring, performance

management, organization development, safety, wellness, benefits, employee motivation,

communication, administration, and training.

In a short way to say about HRM is putting the right people to the right task and

vice-versa to get the maximum out put for an organization in a process. The

people/workforce is represents one of its most potent and valuable resources in any

organizations.

Human Resource Planning, HR people need to determine the long-term/short-

term human resource needs, area they need and the requirements of jobs. Job descriptions

and job specifications will be designed base on the outcomes of the job analysis

information. HR representative people must knowledgeable about the design of work

process systems in which people succeed and contribute. And Human resources are also

responsible for tying incentives and rewards to certain positions and roles in order to

maximize performance levels. This is a strategic thinking task because it.

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DEMADN:
How they identify the demand of HR? They can ask from

different departments and from working groups that which kind of human

resource they are demanding for completion of their objectives and tasks

which are assigned to them. We will ask what type of knowledge skills and

abilities competences are needed or demanded by them. In HBL the

management system is centralized all decisions will be taken by the hade

office. If any new technology was introduced like firstly all working done

manually in banks but now a days all working is done on computers then ask

from the department how much work force is required by them and final

decision will be taken by the head office.

In HBL there demand is not too much because there turn over rate

is very less. Due to low turn over rate the demand for the new employees are

also very less. The bank mostly relay on its existing workers.

SUPPLY:
In supply firstly we should try to get the exact figure of

demand then see the supply of hr.

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 We internally see either we can adjust the demand of hr or not.

either the skills we are requiring exists internally or not. If there is

availability we make adjustment otherwise no.

According to our requirement we give advertisements that

these knowledge skills and abilities we are requiring. Through it we get

response that people are willing or not.

In HBL the supply is also less because due to down sizing the

work of three people are done by one person. They try to maintain there

existing workers.

Forecasting:
The word forecasting means predict

or estimate. Here we have some data on the basis of which we estimate or

forecast. Fore casting can be done on the basis of some past data. They can

predict if this situation comes they can handle it like this. It will ensure the

smooth working.

The HABIB BANK LTD forecasting is done in the head

office. There head office in Karachi takes all the decisions regarding to it

will be taken there.

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HBL use’s a centralized approach and the system which all the branches

have is also working under the control of main branches of HBL. Human

resource management system of HBL is all computerized.

As HRMS consist of 3 stages as follows:

Basic personnel system:

Human resource management department of

HBL maintains all the record of employees electronically. The data

maintained by HR department mainly focus on the employee’s past records,

payroll’s, staffing etc

Augmented HR system:

HBL haves a wide system that’s why

augmented hr system of HBL helps them to use the information more wisely

to deal with the situations or to make the decisions. Augmented HR system

can track individual absences or separations by a variety of combinations of

work classification, geographical location, authority level, and so on

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Comprehensive and interactive HRMS:

 It involves the following features:

 Software more developed

 Guide the employee’s having minimum knowledge

 Relative information generated

 Integrated different functions e.g. staffing, training etc

 Performance appraisals used

RELATIVE FUNCTION:

It enables the users to customize the HR

data to be investigated, thereby offering a wide variety of searches and

analyses to be conducted.

STANDARDS ESTABLISHED BY HRMS OF HBL

SECURITY AND ACCESS:

As HBL is the oldest bank of Pakistan

that’s why the HRMS is highly secured. They have kept standards of

security and reliability from years which makes them leading bank of

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Pakistan. Its system is all centralized and by this the security of data

increases and access is feasible for those who need the data for some

important reason and the person having the authority is provided that

information.

USER FRIENDLY SYSTEM:

HRMS provides friendly

environment. Guidelines provided to the users and it also responses with the

work for those who have minimum knowledge about the system.

FLEXIBILTY:

HRMS if flexible so that if any change is needed it’s

adjusted easily. For example change in salary, qualification and status etc.

APPROPRIATION:

The system established is as per the conditions

and polices of HBL. As its very important that system should be appropriate

with your work.

FUTURE EXPANSION:

The software or the engineers hired are not

for that time it can also be helpful for future. Due the flexibility feature of

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the system change in the system can be easily adjusted which makes it as

future oriented system also.

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