Importance of Management

Management must have the ability to make the most of a company's opportunities. Managers must be worthy of both your trust and your money. Exceptional companies led by quality managers will usually produce investment winners.

1. Finding a company with a sustainable competitive advantage is the first and most important step. Next, and nearly as important, is determining the quality of management. Your goal is a management team that is both "great" and "good". A great management is one with the ability and the desire to realize a company's potential, much like expert card players make the most of the hands they're dealt. Great managers recognize the power of competitive advantage, and are fanatics in protecting and even improving their advantages. They understand the importance of effective capital allocation namely, how they should be spending the company's money. 2. Managers should also be worthy of the trust you give them when you invest in their company. They should be honest and fair with their shareholders who, as the owners of the company, are their bosses. If you owned a small business, you would expect this of the people you hired why shouldn't you expect the same in a large business? Since the priorities of a company are usually set by the chief executive officer (CEO), it makes sense to look at the priorities of the CEO. One approach is to examine how the CEO is paid, which is disclosed each year in the company's proxy statement. You would like to see the CEO have the opportunity to become rich by making the shareholders rich. This can be done through a generous bonus plan based on achieving well-defined results. Stock ownership by the CEO is important, as well, but that ownership should not be as a consequence of large and recurring gifts of company options. Such options have no downside to the CEO and diminish the upside for you and the other stockholders. The annual report provides another glimpse into the thinking of a company's CEO. Read the letter to shareholders at the beginning of the report. Get a sense of whether the CEO is concerned about telling you what needs to be done and how to do it, or is content to toss out "warm and fuzzies" about hard work and good people.

You should also take advantage of opportunities to meet senior management. You might not be very comfortable analyzing a company's cash flow statement, but you're probably pretty good at sizing up people after all, you've been doing it your entire life. Even if you own just 1 share of stock, you are entitled to attend a company's annual meeting, usually held in the spring. In addition, the Investor Relations Department might allow you to listen in on a company's quarterly updates, which are done by phone and often include top management. Increasingly, rebroadcasts of these updates are available by phone or Internet ask the company. 3. You should invest only in companies with sustainable competitive advantages and first-rate managers. Given the shortage of each, it might seem virtually impossible to find potential investments that have both. But there's a positive side to the problem. Exceptional companies attract exceptional managers and people of unusual skill gravitate to places of unusual opportunity.

HISTORY
HBL was established in 1941 in Mumbai (India).It was named after the name of Seth Habib.It was the first bank founded by a Muslim family in India.Habib Group was the owner of this bank up to December 31,1973.At the time of creation of Pakistan,HBL had been even paying salaries to the government employees. Since the government of Pakistan had not enough resources and funds to pay salaries to its employees In 1974, Government of Pakistan nationalized all the banks including HBL . In 1997, Ministry of Financial hired a managing team including president Shaukat Tareen.In 2001 Government of Pakistan privatized the bank by selling 51% share to Aga Khan fund for Economic Development (AKFED).HBL management has so far offered Golden Hand Shake/voluntary scheme in 1997, 2001 and 2005 due to which staff strength reduced from 31099(in 1996) to 16314(in 2005).In 2006,it has 14572 number of employees. After introducing professional management in 1997, HBL succeeded from net loss of Rs 6.802 billion to profit of Rs.12.700 billion. HBL has its existence in 24 countries. It has branches in 17 countries whereas in three countries i-e Australia, United Kingdom and Hong Kong it has subsidiaries.HBL has two affiliates in Nepal and Nigeria.It has two representative officers in China and Iran. It has been divided in 16 groups headed by SEVPs/EVPs who are responsible of their group and ensure to achieve the organizational goals. In 2001, HBL introduced consumer products i-e Life Style, Auto Loan, Flexi Loan and House Loan.In 2005,it introduced Visa Debit and in October 2007 it has launched HBL Visa card. It has also extended consumer loans about Rs.40 billion to the customers.

LATEST NEWS November 1, 2007

Under the auspices of Pakistan Banks' Association, HBL introduced the Enhanced Savings Account (ESA). All PLS Savings Accounts with an average balance of up to Rs. 20,000 will automatically be transferred to this category and earn up to 4% p.a. profit. Under ESA, all accounts will be automatically transferred on October 31, 2007. Profit will be calculated and credited on a quarterly basis on the average balance. Additionally, 4 free debit transactions (excluding ATM) are provided and only Rs. 50 is deducted if the average balance falls below Rs. 5,000 during the month. HBL provides countrywide access to ESA with no hidden charges.

MANAGING BUSINESS IN GLOBAL ARENA

HBL works in domestic as well as international arena.

HBL DOMESTIC NETWORKS: Name of region

BHAWALPUR D.I.KHAN FAISALABAD GUJRANWALA GUJRAT HYDERABAD ISLAMABAD JHELUM KARACHI-A KARACHI-B LAHORE-A LAHORE-B MULTAN MARDAN MUZAFFARABAD MIRPUR PESHAWAR QUETTA RAWALPINDI SUKKUR SAHIWAL SARGODHA SIALKOT

total no. of branches

49 58 73 52 63 61 67 67 70 82 60 54 72 75 33 49 72 27 59 66 70 59 70

HBL INTERNATIONAL NETWORKS: BRANCHES

Afghanistan Bahrain Bangladesh Belgium France Kenya Lebanon Maldives Mauritius Netherlands Oman Seychelles Singapore Srilanka Turkey U.A.E U.S.A

SUBSIDIARIES
AUSTRALIA HONGKONG UNITED KINGDOM

AFFILIATES
NEPAL NIGERIA

REPRESENTATIVE OFFICES
CHINA IRAN

Subtotal-retail banking Corporate centers Commercial banking division Islamic banking

1408 10 18 1

Grand total
International branches Subsidiary branches Affiliate branches Representative offices 45 8 119 2

1437

Offices in 26 countries across 5 continents.

HBL 1437 branches are spread from one end of the country to its last frontiers in the north, east, west and south thus contributing to the overall well being of the communities they serve. Their presence in the country diverse urban regions as well as in the rural areas, including far flung locations of the country. Often classified as in accessible areas, creates opportunities for HBL to provide financial services that compliment business of varying sizes and complenites.

HBL IS A SERVICE ORGANIZATION

HBL established operations in Pakistan in 1947 and moved its head office to Karachi. HBL first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the banks 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 June 13, 2002 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.

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is managerial obligation to take action that protects and both the welfare of society as a whole and the interest of organization.
In October 2005, Pak suffered one of its worst earthquake

in the history of the country, resulting in colossal damage to human lives and property. HBLs 60 branches of the bank were affected and several of their staff members lost their near and dear ones; many homes were damaged and several completely destroyed. The bank responded swiftly by arranging delivery of relief items such as food, shelter and medicine to all staff members in the affected areas through the aegis of FOCUS Humanitarian Assistance and air transport support through the helicopter operations of the Aga Khan Foundation. The bank also provided financial assistance to the affected staff for reconstruction of their homes. In addition to this the bank has participated in making a significant contribution of Rs. 41 million ($ 0.6 million) towards the Presidents Earthquake Relief Fund and other organizations for earthquake victims. HBL international branches, particularly their subsidiary in the UK were instrumental in mobilizing substantial funds from generous donors to the Presidents Relief Funds.

 HBL has Sports Division. It has provided jobs to players

as a social responsibility. So that players in the field of cricket, tennis, football, badminton may achieve desired goal of nation / country.
HBL Flexi loans can help finance your childs schooling

paying the way for their secured and prosperous future. A future where dreams are free to come true.
HBL provides a fully integrated corporate and investment

banking platform to our clients. HBL can provide facilities such as Foreign Currency Financing, as well as raising Equity and Structured Finance to meet customer investment needs and allowing them to take full advantage of HBL large equity base and extensive network. HBL says were here for you.
HBL Rehaish, offer affordable and convenient schemes

that help many people every year buy a new house and turn it into a home.
HBL Commercial Banking provides SME (Small and

Medium Enterprises) financing to help their businesses prosper. HBL products such as Cash and Running Finance and Finance against Packing Credit are helping HBL customers grow their businesses all over Pakistan, making the jump from small start-ups to successful enterprises that will provide for their families for generations.
The First Habib Bank Modaraba provides different Islamic

Financial products for short and long term resource requirements products like HBL Ijarah provide loans on plants. Machinery and equipment so your business can benefit from investment on terms that suit customers, giving them peace of mind.
HBL products such as seasonal Finance, Factor Finance

and Maryali Running Finance provide farmers with the things they need to make the most of their resources, by increasing yields and investing in year round crop
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cultivation. The Haryali Revolving Finance Scheme encompasses finance for 3 years on easy payback terms and conditions.

CODES OF ETHICS A code of ethics is a formal statement that acts as a guide for making decisions and acting within an organization.

HBL works for code of ethics for the implementation of ethical business tively and efficiently.

MISSION STATEMENT
To make their customers prosper, their staff excel and create value for shareholders

VISION
Enabling people to advance with confidence and success

HBL BRAND
HBL brand identity is the outward expression of what they stand for as an organization. This is summarized

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in their vision, mission and is supported by their values.

VALUES

HBL values are the fundamental principles that define their culture and are brought to life in their attitudes and behavior. It is their values that make them unique and unmistakable.

CUSTOMER FOCUS
They understand fully the needs of their customers and adapt their products and services to meet these. They always strive to put the satisfaction of their customers first.

MERITOCRACY
HBL believe in giving opportunities and advantages to their employees on the basis of their ability. They

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believe in rewarding achievement and in providing first-class career opportunities for all.

Objectives
To provide innovative product services to the customers, to satisfy their needs to achieve organizational goals and to make profit for the organization.

Why objectives are important?

Objectives are basically targets and important ends which directs the organization and individual to achieve organizational success. They flow naturally from organizations purpose of missions. They are very important for any organization and like wise for HBL They guide in decision making They guide for organizational efficiency They guide for organizational consistency They guide for performance evaluation

How objectives are developed?

Objectives are basically branches of mission statement. As they flow from the purpose or mission of the bank. They are developed after analyzing environmental trends. They are developed by mutual consensus.

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MANAGEMENT SYSTEM
In HBL there is an open management system An open management system is one that is influenced by and is continually interacting with its environment.

ORGANIZATIONAL LEVEL
TOP MANAGEMENT
President Senior Executive Vice President

MIDDLE MANAGEMENT
Executive Vice President Senior Vice President Vice President

LOWER LEVEL MANAGEMENT

Assistant Vice President

Officers

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ROLES PERFORMED BY DIFFERENT LEVEL OF MANAGEMENT

TOP LEVEL MANAGEMENT

To make day to day decisions to run the organization to make more profit. To implement policies approved by board of directors. To recommend different products / changes in policies / procedure for approval.

MIDDLE LEVEL MANAGEMENT

To perform departmental activities. To supervise activities & direct the organizational source toward, achievement of organizational goals. To supervise operational activities of branches. Monitoring / marketing the products.

LOWER LEVEL MANAGEMENT

To render services to customers. To sell product to the customers.

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SKILLS NECESSARY FOR DIFFERENT HIERARCHY LEVELS

TOP LEVEL MANAGEMENT

For upper management each skill like technical skills, human skills and conceptual skills are important. Apart from this they should have time management skill and decision skills. But for upper management conceptual skill is the most important because they are less involved with the actual production activity or technical areas and more involved in guiding the organizations as a whole. Also they require: Banking experience (15-20) years Job knowledge Professional qualification (Masters) Expert in designing products Communication skills

MIDDLE LEVEL MANAGEMENT

However the human skills are extremely important to managers at top, middle and lower level but it is necessary for middle level management. Also they should have: Professional qualification(Masters) Banking experience Job knowledge
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 Communication skills

LOWER LEVEL MANAGEMENT

For lower level management technical skills are most important and conceptual skills are less important they should be expert and specialized in executing their work. Also they require: Computer skills Communication skills Professional qualification (Bachelor) Banking experience (above 5 years) Job knowledge (know how to writing a reports)

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PURPOSE OF HBL WHEN DEVELOP PLANS In HBL both the purposes of planning has been used

PROTECTIVE purpose of planning is to minimize risk by

reducing the uncertainties surrounding business condition.

AFFIRMATIVE purpose is to increase the degree of

organizational success.

HBL PLANS TO ACHIEVE OBJECTIVES

According to demographically / political / economic and social sector. Plans by seeing the external factors

EXTERNAL FACTORS include political, social, demographic, consumer, economic, state bank policies and rules effect the bank e.g; increase in cash equidty badly effect bank

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MANAGEMENT BY OBJECTIVES (MBO)

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible result from available resources. HBL applies MBO process to increase organizational performance by aligning goals and subordinate objectives throughout the organization. They believe ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

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MBO for next operating period begins

Organizational Objectives Revised

Rewards Given

Workers Objective set

Performance evaluated

Progress Monitored

MBO Process

IMPLEMENTATION OF STRATEGY IN HBL

Strategy implemented in HBL in the following manner. STEP1: Review organizational objectives HBLs objective is to make other customer prosper and to create value for their stakeholders. STEP2: Set worker objectives To earn profit for the organization
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STEP3: Monitor progress Less complaints Timely service is provided Monthly revenue and cost STEP4: Evaluate performance Performance efficiency achieving his goals / targets. His performance is appraised with regard to the targets allocate to staff STEP5: Give rewards Promotion Special salary increase Cash price

FACTORS NECESSARY FOR SUCESSFUL MBO PROGRAMME

Individual within the organization are assigned to a specialized set of objectives Performance reviews Rewards interms of bonuses and promotion.

PLANNING:
At HBL, it is firmly believed that planning is an essential part of managing organization on local level or international level. They consider planning as first step to move towards their organizational goals, for which management develops effective plans.

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Planning is the process of setting objectives and determining how to accomplish them.

PLAN:
Habib Bank considers a Plan as a proposed or intended method of getting from one set of circumstances to another. They are often used to move from the present situation, towards the achievement of one or more objectives or goals.

Advantages of Planning
HBL considers planning as important as other functions of management. Some of the advantages of planning are given as follow, Planning helps one to focus his time and energy on activities that are most likely to achieve your goals Planning helps in allocating resources. Planning emphasizes on organizational objectives

Disadvantages of Planning
Sometimes planning consumes too much of managerial time.

Purpose of Planning
The purpose of Priority Banking is protective as it aims to bring its customers the experience and expertise, which is vital for managing their wealth. Standard Chartered Banks unique Plan, Grow and Protect methodology gives you the choice of managing your wealth efficiently and effectively.

IMPORTANCE OF CEO
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 Planning is the responsibility of top level management especially CEO, he concerns other colleagues like SEVP, monitor them sees effect of planning, rewards given. CEO can also do meeting for planning. He may call SEVPs , EVPs etc

PLANNING TOOLS USED BY HBL

Planning tools are techniques mangers can use to help develop plans HBL is using a FORECASTING, TIME SERIES ANALYSIS METHOD tools when develop plans FORECASTING is a planning tool used to predict future environment happenings that will influence the operation of the organization. It includes political economical condition, consumer income forecasts than we plan. TIME SERIES ANALYSIS METHOD is to predict future sales levels by analyzing the historical relationship in an organization between sales and time.

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DECISIONS
By Taking feedback. By seeing the situation such that in consumer banking if we saw that we dont have enough money we stop our work in this sector.

TOOLS USED BY HBL WHEN TAKING DECISIONS

PROGRAMMED DECISIONS are decisions that are routine and repetitive.

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 BANK OPERATION like opening of new accounts, lending, giving loans, LC opening, to accept deposits from customers and withdraw deposits. NON-PROGRAMMED DECISIONS are typically one short decisions that are usually less structured Budget, policies, expenditure policy, promotion policy, salary increment, rewards

SCOPE OF DECISION
HBL makes both narrow-scope and broad-scope research and development decisions. They can take feedback, circulation of questionnaire for important decision from top to lower level. Scope of decision depends on the level of management. Higher the level, higher will be the scope.

Top

Middle

Lower

Narrow decision Intermediate Broad decision Scope decision Scope Scope

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STEPS TAKING BY ORGANIZATION WHEN MAKING DECISION

STEP1: Identify an existing problem

Complaints customer service cash counter They delay the cash Notes are not clean Not behave well

STEP2: List possible alternatives for solving the problem

1. Change the cash counter staff or being replaced with new hire staff who are better in education, manner, and dress 2. Warning to customer staff 3. Transfer the counter staff to other branch / from present assignment to non-counter assignment.

STEP3: Select the most beneficial of these alternatives

Option 1 is best

STEP4: Implement the selected alternatives

The counter staff is being replaced with fresh hires.

STEP5: Gather feedback

Less complaints

DECISION MAKING CONDITION

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The decision making condition which HBL is using are: COMPLETE CERTAINTY & RISK CONDITION Depend on the situation and obliged product (LC, all types of loans) being introduced in the market.

GROUP DECISION MAKING PROCESS

Inform them through email, telephoning, by circular, by memo. Agenda of meeting is decided and told them so they come with their suggestions. Meetings.

STRATEGIC PLANNIG Strategic planning is a long-range planning that focuses on the organization as a whole.
Long range planning is usually defined as a period of time extending about three to five years into the future. Managers may have a problem trying to decide exactly how far into the future they should extend their strategic planning. As a general rule, they should follow the commitment principle which states that managers should commit funds for planning only if they can anticipate, in the foreseeable future, a return on planning expenses as a result of long-range planning analysis realistically, planning costs are an investment and therefore should not be incurred on less a reasonable return on that investment is anticipated for
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an organization like HBL the importance of planning is not crucial but also vital to its survival in the modern day economy. HBL well and truly recognizes the need for an efficient and pragmatic planning tool. In the light of economic conditions in Pakistan, HBL growth strategy aims at maintaining short and long-term deposits to minimize the cost of funds. HBL will continue to make changes to the operation of their business, with a reorganization of the Consumer and Retail Banking businesses already underway. They will also continue to focus on reducing and optimizing costs, making them a leaner organization that can adopt to change much more quickly. Enhanced IT will help HBL enhance and expand their product offering, upgrading their operations in urban areas and continuing to meet the needs of rural areas that so many of their competitors overlook. HBL is currently examining options of increasing their participation in the rapidly growing market in Chine. As a first step they have opened their representative office in China. HBL has existence in Afghanistan and operating with two branches in Kabul and is in the process of opening branch in Heart city which is more secured for trade and business activities and may have promising trade prospects. It is strengthening its presence in East Africa. HBL, in future has plan to have its existence in South Africa and Central Asia. In some countries as a part of its strategic planning, HBL has closed/sold its operations in Sydney (Habib Australia Finance Ltd.) in 2007. It has also sold its operations in Fiji Islands in 2006. In Gulf Region (UAE/Oman/Bahrain) it has closed /merged its some branches with other ones which were not producing the desired results. The bank is committed to enhancing its presence in the SAARC countries. In 2007, HBL has opened its two more
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branches in Bangladesh i.e. Dhaka and Sylhet. Now it has four branches in Bangladesh ( 2 Dhaka, 1 Chittagong &1 Sylhet). In Maldives, HBL has one branch. In Sri Lanka, It has three branches. In India, HBL has planed of opening a branch either in Bombay or Dehli to enhance its presence in SAARC countries. It is truly a bank for tomorrow

STRATEGY MANAGEMENT: Strategy management is the process of ensuring that an organization possesses and benefits from the use of an appropriate organization strategy. The strategy management process is general thought to consist of five sequential and continuing steps. 1. Environmental analysis 2. Establishment of an organizations directions 3. Strategy formulation 4. Strategy implementation 5. Strategy control

ENVIRONMENTAL ANALYSIS:
Environmental Analysis is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operation. It is very important to have environmental analysis to understand the impact of factors related to the environment of the organization otherwise the organizational operations

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may not run effectively and its component cannot work effectively to achieve the goals. HBL has environmental analysis and acts accordingly by pinpointing factors and to counter the same timely. There are three type of environment prevails which influence the organization.

General Environment
There are five components of general environment, which affects the organizational operation according to their intensity and impact.
I.Economic component

It indicates how resources are being distributed and used within the environment. How the particular community is producing, distributing and using various goods and services. Keeping in view economic resources possessing by the population, HBL targets the customers by introducing various products to attract them. HBL introduced Auto Loan/Flexi Loan/Life Style/Visa card/debit card/value account to sell them same. The consumers are using the banks products. While selling goods, the wages of the employees, inflation, the tax paid, and the cost of material is kept in mind to determine and what price product/service should be sold in the target market. It is very important for an organizations success to have thorough economic analysis of the environment to design the products and services otherwise an organization may not be able in achieving its results/goals.

II. Technology component

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New approaches/procedures/technology are used in producing goods and services to compete with the other organizations in the market. HBL has purchased software called as MISYS from a Singapore firm. In 2005, it installed the system in one branch in Karachi and in its Singapore Branch. After its successful launching, it has now installed MISYS in about 300 branches in domestic and overseas branches. Real time banking is now ensured in HBL. By completion of installation process, remaining branches will also be on line banking leading to paperless banking. The customer may transfer their funds from one account to another account within or outside country within few seconds of time. HBL has planned to shift all the 1443 (Nov.2007) branches on MISYS by end of 2008. HBL is the first bank in Pakistan, which has acquired this system to cater its needs. It will also help in reducing staff strength significantly due to elimination of manual work. Due to introduction of MISYS, HBL had to change its existing accounting and procedure system to acquaint with the new system. III. Legal Component The legal component is that part of general environment which contains passed legislation. It influences the organization. Violation of laws may lead to imposition of penalty to the organization. The banks in Pakistan have to perform their functions in line with SBP directives (regulators), Security & Exchange Commission of Pakistan (SECP), Banking Recovery Ordinance ( 2001) for recovery of loans, BASEL -I & BASELII with regard to Anti Money Laundering (AML) & Terrorist Financing to meet international community obligation and to observe the United Nations directives on freezing of assets of a country or person. Country laws with regard to maintenance of secrecy of information about the
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customers. In 1974, Nationalization Act was passed and banks and numbers of industries were nationalized and now the same are being privatized. All the nationalized banks except NBP have been privatized through Privatization Commission o f Pakistan. Health and Safety Act aims at ensuring health and safe workplace for the workers. According to the need, new laws are passed and old are amended or eliminated.

IV. Political Component Political component is that part of general environment which is related to Government affairs. Government policies may influence the organization and it has vital impact thereon. In 1974, banks including HBL and other important big industries/factories in the country were nationalized as a Government policy. The charter of political parties on coming into powers may influence about a particular industry /organization. The form of Government whether it is a military or democratic. Other countries economic, political and military aids depend upon the form of the government which also influence its industry, social sector institution and financial institutions as well and rating of banks may be downgrade or otherwise. In international markets, foreign banks may refuse acceptance of Pakistani Banks letters of credit (LCs) opened fro import of goods.

V. Social Component The social component shows the characteristics of the society in which organization exists. There Are two important features of the society are Demographics and Social Values.

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Demographics are the statistical characteristics of a population. It shows the changes in numbers of population and income distribution among the various population segments. Such changes influences the reception of the good and services with the organizations environment. The study of demographics characteristics of population may help the organization in formulating its strategy to compete in the market. HBL as its strategy, targets the consumers (low /middle /high income) by introducing the products. For example, it targets the middle income consumer by introducing consumer products like Flexi loan/Visa Card and Balance Transfer Facility (BTF) and house loan/car loan products were introduced for high income consumers. Social Values are the relative degrees of worth society places on the manner in whi8ch it exists and functions. Social values of the society influence the organization in tailoring its products and services to the consumers. Keeping in view social values in Pakistan society, HBL has strategic planning in introducing the products /procedures.

Operating Environment
Operating environment is the external environment that contains the components normally having relatively specific and immediate implications for managing the organization. It has five environmental components as under: 1. 2. 3. 4. 5. Customer component Competition component Labour component Supplier component International component

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Customer Component
Customer component relates to the buyers who buy goods and services provided by the organization. The organization develop the profile, detailed the description of those who buy their products. Developing such profiles helps management generate ideas for improving customer acceptance of organizational goods and services. In HBL, at present no customer-wise profile is maintained to help the management generate ideas for improving customer acceptance of products.

Competition component
Competition component is composed of those with whom an organization compete in order to obtain resources. Understanding the competitors is a key factor in developing the effective strategy. It helps in understanding the real challenged to the management. The competition analysis helps the management to apprehend its strength, weakness, opportunities and threats (SWOT) and also strategies of existing and potential competitors. In the market there are numbers of local and foreign banks which are competing with each other. HBL has main competition with UBL,MCB, Standard Chartered Bank, NIB, Alflah Bank ,Citi Bank and ABN Amro in consumer products. HBL well knows its weakness and strength. It has advantage of vast network and customers based. It entered late in consumer products as compared to Citi Bank/SCB/ABN Amro. Labour Component

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This component relates to factors influencing the supply of labour required for performing organizational task. Issues of skilled labour, wages and average age of potential workers are important for the operation of the organization. Employees desired to work for a particular organization is most important. In HBL, skilled employees are being hired at different position with higher salary packages. Mostly young people are being hired especially in middle management. Branch Managers are being replaced with fresh hirees. HBL is well aware of operating environment with regard to its labour. Supplier Component This component comprises of all the variables related to individuals and agencies that provide the organization with the resources they need to produce the goods and services. These individuals and agencies are called suppliers. In HBL, it has outsourced security guards, messenger and drivers. In consumer banking, it also outsourced the employees in Sale, Collection and Recovery Departments. Now it is also hiring the employees for the said jobs directly on permanent and contract basis.

International Component
This component relates to the international implications influencing organization operations. Significant factors include other countries laws, economics, culture and politics. HBL has existence in Gulf, Europe, South Asia, USA, Africa, Far East countries and its operations are in line with those countries laws and other factors.

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Internal Environment It relates to an organizations internal environment which includes as planning, organizing, influencing and controlling aspects. It is mostly related to marketing, finance and accounting. HBL internal environment with regard to above aspects is well defined and business oriented. Its different departments are doing very well within defined policy and procedures and planning and are well organized and controlled.

Strategic Management Tools

A number of Strategic planning tools are used but Habib Bank. Among them the most highlighted is SWOT Analysis.

SWOT Analysis SWOT analysis is a methodology of examining potential strategies derived from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT). The partnering of the different elements and the extensive data collected as a result of the analysis can serve as a spark for roundtable discussions and refinement of current strategies or generation of new strategies. HBL uses SWOT analysis for strategic planning.

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The following diagram shows how a SWOT analysis fits into a strategic situation analysis.

The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the Bank as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, Habib Bank can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats.

Tactical Planning
Tactical planning is the short range planning. Goals of Tactical Planning of Habib Bank are: Integrate specific project lists for each directorate Establish short-term 6 month to 1 year goals Negotiate commitment and dependencies
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ORGANAZING MODULE
Organizing is a process of establishing orderly uses for all the organization resources.

IMPORTANCE OF ORGANAZING Plans that make the management system more effective and efficient. Plans to improve managerial skills to fit current management system need.

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 An advantageous organizational climate with in management system.

THE ORGANAZING PROCESS The five main steps in organizing process are: 1) Reflect on plans and objectives 2) Establish major tasks 3) Divide major tasks into subtasks 4) Allocate resources and directives for subtasks 5) Evaluate the results of implemented organizing strategy

Step 1 Reflect on plans and objective s Step 5 Evaluate results of organizing strategy

Step 2 Establish major tasks Step 3 Divide major tasks into subtasks p

Step 4 Allocate resources and directives for subtasks

In the first step, the management reviews the organization plans and objectives and determines how the resources (man, money) available will be used to implement these.

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In case of HBL the objective is To make HBL customers prosper, their staffs excel and creator value for shareholders. The management will decide how this is to happen. In the 2nd and 3rd steps the management defines tasks that need to be carried out. The manager designates major tasks or jobs to be done with in their department. In the 4th step the management allocate resources such as financial budgets, employees etc. The management also decides who will take or give orders, how different individuals will be related to each other, the different work routines, etc. In the last step the management evaluates whether the organizing strategy was successful or not i.e. whether it is aiding the achievement of goals.

The Organizing Subsystem

The primary purpose of the organizing subsystem is to enhance the goal attainment of the general management system by providing a rational approach for using organizational resources. In case of HBL, the input is man (appropriate human resource), money and machine (computer etc).The process is the steps involved in the organizing function and output is the organization. INPUT
A portion of the organizations 1. People 2. Money 3. Machine

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PRO 1. 2. 3. 4. CESS Reflect on plans and objectives Establish major tasks Divide major tasks into subtasks Allocate resources and directives for subtasks 5. Evaluate the results of implemented organizing strategy

OUTPUT Organization

RESPONSIBILITY, AUTHORITY AND DELEGATION

RESPONSIBILITY:
Responsibility is the obligation to perform assigned activities. It is the self assumed commitment to handle a job to the best of ones ability. The source of responsibility lies within the individual. A person who accepts a job agrees to carry out a series of duties or activities or to see that someone else carries them out. At HBL all employees are encouraged to take full responsibility of their actions and various job tasks. Responsible employees also tend to be more motivated and focused on achieving organizational objectives. Job description is a list of specific activities that must be performed to accomplish some major task or job.

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HBL gave job description to individual with the appointment letter. It is to enhance the accomplishment of management system objectives. Management analyzes its objectives and assigns specific duties that will lead to reaching those objectives. AREAS RELATED TO RESPONSIBILITY: The following three areas are related to responsibility: 1) Dividing job activities 2) Clarifying job activities of managers 3) Being responsible The job activities are divided among the employees. These activities are the appropriate activities that must be performed for achieving HBLs goals. This is only done when the objectives are crystal clear to the management. The jobs of the individuals are designed. At last they are made responsible for doing that job. These activities are clear to every individual. So, that HBL can achieve its goals. Clarifying job activities in this sense also that the responsibility may not overlap. At the end the individual is made responsible for his/her designated job. PROBLEMS RELATED TO RESPONSIBILITY: Overlapping Responsibility: This refers to the situation in which more than one individual is responsible for the same activity. Responsibility Gap: This happens when certain organizational tasks are not included in the responsibility area of any organizational member. These problems are very rare to see at HBL because every employee knows his/her job clearly, which is mentioned in their job description. Also because HBL has responsible managers who are performing their jobs very nicely.

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AUTHORITY:
Authority is the right to perform or command. It is the basic instrument managers of HBL use to get the job done. It allows its holder to act in certain designated ways and to directly influence the actions of others through orders. It also allows its holder to allocate the organizations resources to achieve organizational objectives. Those positioned toward the top of the chart possess more authority than those positioned toward the bottom. Authority is the character of communication by which an order is accepted by an individual as governing the actions that individual takes within the system. The order must be understandable, consistent with the purpose of the organization and compatible with individual personal interests. TYPES OF AUTHORITY: There are three main types of authority. Line Authority: Line authority consists of the right to make decisions and to make decisions and to give orders concerning the production, sales or finance related behavior of subordinates. Staff Authority: Staff authority consists of the right to advise or assist those who possess line authority.

Functional Authority: Functional authority consists of the right to give orders within a segment of the management system in which the right is normally nonexistent.

The upper management has the line authority. Whereas staff goes to the middle and lower level management. The individual who is having line authority at one time may have staff authority at the other time. Functional authority generally assigned to individuals to complement the line or staff authority they already posses. It
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generally covers only specific task areas and is operational only for designated amount of time. ACCOUNTABILITY: Accountability refers to the management philosophy whereby individuals are held liable, or accountable, for how well they use their authority or live up to their responsibility of performing predetermined activities. The concept of accountability implies that if an individual does not perform predetermined activities, some type of penalty, or punishment, is justifiable. The concept of accountability also implies that if an individual perform predetermined activities very well some type of reward is given. At HBL if a person is vested authority he will also be accountable for his/her job to the senior management. He may be issue charge sheet or inquiry committee may call him/her and may be awarded punishment accordingly.

DELEGATION:
Delegation is the process of assigning job activities and related authority to specific individuals in the organization.

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HUMAN RESOURCE
Appropriate human resources are the individuals in the organization who make a valuable contribution to management system goal attainment. This contribution results from their productivity in the positions they hold. Inappropriate human resources refer to organization members who do not make a valuable contribution to the attainment of management system objectives. It means that the individual are ineffective in their jobs. Productivity in all organizations is determined by how human resources interact and combine to use all other management system resources.

STEPS IN PROVIDING HUMAN RESOURCES

There are four major steps: 1) Recruitment 2) Selection 3) Training 4) Performance Appraisal

1) Recruitment:
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Recruitment is the initial attraction and screening of the supply of prospective human resources available to fill a position. HBL staff is the key point between customers and the bank crucial to their success. Thats why HBL has been recruiting high-caliber senior and mid level professionals to further strengthen the quality of their staff pool. They are also looking out for managers of tomorrow, recruiting trainees and probationary officers with potential to shine. These trainees are being put through specially designed programs at the Banks Management Development Institute to build their skills and shape them into the stars of the future. Recent recruitments have been geared towards product specialists and system specialists and towards improving customer care. Job analysis is a technique commonly used to gain an understanding of what a task entails and the type of individual who should be hired to perform that task. Job description is a list of specific activities that must be performed to accomplish some task or job. Job specification is a list of the characteristics of the individual who should be hired to perform a specific task or job. HBL gave job analysis to its recruiters. So that every one knows his/her job. HBLs management system is running properly due to this reason and also due to this HBL is achieving its goals very easily. Source of recruiters: The recruiters are sometimes within the organization by promotion and transfer. Human resource inventory is an accumulation of information about the characteristics of organization members; this information focuses on members past performance as well as on how they might be trained and best used in the future. There is no such system at HBL. Also sometimes outside the organization. It prefers the employees of other banks who are experienced in their relative field.
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The Equal Employment Opportunity Commission (EEOC) is an agency established to enforce federal laws regulating recruiting and other employment practices. HBL recruiting process is free from all sort of discrimination. It wants a best person for its organization.

2) Selection:
Selection is choosing an individual to hire from all those who have been recruited. Selection is represented as a series of stages through whish job applicants must pass in order to be hired. TOOLS USED DURING SELECTION PROCESS: Tools often used in selection process are testing and assessment centers. Testing is examining human resources for qualities relevant to performing available jobs. An Assessment Centre is a program in which participants engage in, and are evaluated on, a number of individual and group exercises constructed to simulate important activities at the organizational levels to which they aspire. HBL only use testing for selection. Written test is taken from those candidates who dont have any job experience. Sample paper is also provided to them for their preparation. Then three interviews are taken from those who passed the written test. After clearing interview a medical test is taken. If they are selected then an appointment letter is given to them. The candidates who have work experience in any bank are required to give three to five interviews and a medical test.

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3) Training:
Training is the process of developing qualities in human resources that will enable them to be more productive. After selection three months training is required at Management and Development Institute only at Karachi, Lahore and Islamabad for those who dont have any work experience in banking sector. Also HBL train its employees by organizing seminars especially when they are launching any new product. Where lectures are given. After training they are tested and then certificate is given to them. It is a continuing activity at HBL.

4) Performance Appraisal:
Performance appraisal is the process of reviewing past productive activity to evaluate the contribution individuals have made toward attaining management system objectives. Its main purpose is to furnish feedback to organization members about how they can become productive and useful to the organization in its quest for quality.

Performance Appraisal at HBL:

Its importance at HBL is as follows: It provides systematic judgments to support salary increases, promotions, transfers, and also demotion and termination. It is a mean of telling subordinates how they are doing their job. It furnishes a useful basis for the coaching and counseling of individuals by superiors. It is done once in a year. Supervisor of the employee appraises him. A supervisor appraises him in grades i.e., A, B, C and D. It direct affects salary and promotion. After three years individual is eligible for promotion. If an employee has a C he/she is not applicable for

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promotions interview. There are not any fixed rates for salary increment. New rates are announced every year. GRADE A B C D REMARKS Excellent V. good Good Unsatisfactory

ORGANIZATIONAL CHANGE AND STRESS

Changing an organization is the process of modifying an existing organization to increase organizational effectiveness. These modifications can involve virtually any organizational segment, but typically affect the lines of organizational authority, the levels of responsibility held by various organization members, and the established lines of organizational communication. Driven by new technology, expanding global opportunities, and the trend toward organizational streamling, almost all modern organizations are changing in some way.
CHANGE VERSUS STABILITY:

In addition to organizational change, some type of stability is a prerequisite for a long term organizational success. Organizational survival and growth are most probable when both stability and adaption are high within the organization. The organization without enough stability to complement change is at a definite disadvantage. When stability is low, the probability of organizational survival and growth declines. Change after change without regard for the essential role of stability typically results in confusion and employee stress.

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FACTORS TO BE CONSIDER WHEN CHANGING AN ORGANIZATION: The following factors should be considered whenever change is being contemplated: 1. The change agent 2. Determining what should be changed 3. The kind of change to make 4. Individuals affected by the change 5. Evaluation of the change
1. The Change Agent:

A change agent is an individual inside or outside the organization who tries to modify an existing organizational situation. Skills necessary for a skill agent: The ability to determine how a change should be made The skill to solve change-related problems 2. Determining What Should Be Changed: Managers should make only those changes that will increase organizational effectiveness. The organizational effectiveness depends primarily around three classes of factors: People Structure Technology People factors are attitudes, leadership skills, communication skills, and other characteristics of the organizations employees. This can be change by experience and learning new skills. Structural factors are organizational controls, such as policies and procedures.

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Technological factors are any types of equipment or processes that assist organization members in the performance of their jobs. For an organization to maximize its effectiveness, appropriate people must be matched with appropriate technology and appropriate structure. HBL modify its technology in order to have an effective and efficient management system.

3. The Kind of Change to Make:

Most changes can be categorized as one of the three kinds: Technological Structural People

Technological: Technological change is a type of organizational change that emphasizes modifying the level of technology in the management system. HBL knows that changing technology and adapting new technology is very necessary if they want to be a bank of tomorrow. HBL has installed MISYS in Pakistan and overseas Branches. Real time banking is now ensured in HBL. At present about 300 branches are on MIYSYS (system software) and in the year 2008, remaining branches will also be shifted on MIYSYS one line system to have on line banking. In Pakistan and overseas locations. HBL is the first bank in Pakistan, which has acquired this system to cater its needs. Structural:

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Structural change is a type of organizational change that emphasizes modifying an existing organizational structure. The major advantage of the structural change is better control of a project, better customer relations, shorter project development time, and lower project costs. People: People change is a type of organizational change than emphasizes modifying certain aspects of organization members to increase organizational effectiveness. After privatization this change is very much in the light. HBL management hire new staff especially in the upper management and it also offer golden handshakes to the old employees. Now there are less number of employees in HBL.

4. Individuals Affected By The Change: When HBL brings the technological change, the management feels to train its staff. Different training programs were designed. It is not a big deal for the young employees because they have enough potential to accept the technology. They are smart enough to absorb it. But the mature staff has the problem to absorb it. Also when the time came to reduce the staff the feeling of hatred naturally came in the hearts of employees. They are worried because in Pakistan it is very difficult to find a good and a permanent job.
5. Evaluation of The Change:

The changes are the evaluated. The changes that brought after privatization are evaluated. By changing technology the tasks are now complete in short duration of time.

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STRESS:
Stress is the bodily strain that an individual experiences as a result of coping with some environmental factor. Managing Stress in Organization: Because stress is felt by virtually all employees in all organizations, insights about managing stress are valuable to all managers. In order to appropriately manage stress in organizations, managers must do the following: Understand how stress influences worker performance Identify where unhealthy stress exists in organizations Help employees handle stress The employees feel stress usually at the time of launching new product in HBL.

Managing Change
HBL believes that their managers must manage employee resistance to change. They believe that whenever there is a positive change in the organization and if they are able to manage that change in the best way, it will enable them to understand and serve all their stake holders better and make them the preferred employer in the market. They are determined to attract, develop and retain the best and to leverage the strengths their change beings. Resistance to change with in an organization is as common as the need for change HBL makes secure that it reduces the resistance to change of its employees and manage the after affects of the change in the best possible way. To do so there is frequent Training sessions and work ships to help

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its employees to deal with the modifications. HBL on its account sent its employees to for training purpose. It obviously helps the employees and gives them opportunities to maximize their personal potentials and tackle with the changes made with in the bank which increases the banks performance and market value. First a change or modifications for the increasing efficiency and than managing that change have a profound impact on the bank. The challenge to live up to the ever increasing expectations of investors, shareholders, and the general public, keep growing with increasing profits. By anticipating these risks and being more proactive in managing them, the bank is able to improve social and environmental outcome.

INFLUENCING MODLE
Influencing is the process of guiding the activities of organization members in appropriate directors. Appropriate directions, of course, are those that lead to the attainment of management system objectives. Influencing involves focusing on organization member as people and dealing with such issues morale arbitration of conflicts, and the development of good working relationships. The HBL Managers are able enough to best guide their sub ordinates in an appropriate directors, which leads them to the attainment of objectives.

The Influencing Subsystem:

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Influencing is a subsystem within the overall management system. The input of this subsystem is composed of means money and machine and its output is appropriate organization members behavior. The process of influencing subsystem involves 1. Leading 2. Motivating 3. Considering groups 4. Communicating. Leading, motivating and considering groups are inter related. Managers accomplish each of these influencing activities, to some extent by communicating with organization members. In HBL all management activities, are accomplished through communication. Ability to communicate is referred as the fundamental management skill.

Communication:
Communication is the process of sharing information with other individuals. Information, as used here, is any thought or idea that managers desire to share with other individuals. This technique is important for any manager to be successful.

Interpersonal Communication: The communication activities of Managers generally involve interpersonal communication sharing information with other members. In HBL, the information is usually share by writing and sending memos and letters. The Managers and subordinates write memos to each other to share their information. They achieve successful communication
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only due to their good writing skills. They have excellent writing skills. They have excellent English vocabulary and grammar. There are no macro and macro barriers in communication process. The management system is well enough that the employees even never heard of the micro and macro barriers. Types of Interpersonal communication: There are two types of interpersonal communication Verbal communication Non verbal communication

Verbal Communication: Verbal communication is the sharing of information through words either written has spoken. Nonverbal Communication: Nonverbal communication is the sharing of information without using words. Like gestures vocal tones and facial expressions. Interpersonal communication in HBL Organizational communication is directly relates to the goal functions, and structure of human organizations. Organizational success is determined by effectiveness of organizational communication. the

Formal Organizational communication:

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It follows the lines of the organizational chart. There are three basic types of formal organizational communication. i) Downward Organizational communication: It flows from any point an on organization chart downward to another point on the organizational chart. ii) Upward communication: organizational

It flows from any point on an organization charge upward to another point on the organization chart. HBL managers usually use if when they need to evaluate the organizational area for which they are responsible and to determine if something is going wrong within their circle of responsibility. The Manager, subordinate relationship in HBL is not only formal both also they share an informal relationship. Thats why they easily understand each other.
iii)

Lateral organization communication:

It flows from any point on an organization chart horizontally to another point on the organization charge. It usually focuses on coordinating the activities of various department sand developing new plant for future operating period. One of the reasons of attaining the managing system. Objectives are the lateral communication in HBL.

Informal Organizational communications: 57

It does not follow the line of the organization chart. HBL encourages informal organizational communication but it should not affect the work of the subordinate and the manger and also in attaining the goals of HBL. It only encourages it so that a friendly and cooperative environment creates and everyone feels comfortable while working hours in HBL.

MOTIVATION

"Motivation is the inner that causes an individual to behave in a way that ensures the accomplishment of some goal" Herzberg Two Factor Theory may be applied on HBL which provides job satisfaction (motivation) and job dissatisfaction (hygiene factor).This is the theory easily applicable on an organization. MOTIVATORS personal growth work content achievement recognition responsibility advancement HYGIENE FACTORS company policies
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supervision interpersonal relations working conditions job security pay

MOTIVATORS: PERSONEL GROWTH In HBL there is a lot of opportunities for the personnel growth of employees especially for the new ones. A number of activities take place in HBL.They can learn a lot from these activities. WORK CONTENT The variety of work done by employees satisfied them.In this way they motivate themselves to perform better work in the near future. ACHIEVMENT Lot of opportunities exists in HBL for achievement which leads to satisfaction. RESPONSIBILITY In HBL,every employee is responsible for his or her assigned goal and accomplishment. ADVANCEMENT Opportunity of advancement makes an employee satisfy. The employee get promotion to next higher grade. HYGIENE FACTORS: The following hygiene factors are dissatisfactory exit in HBL which is a negative sign for the growth of bank. COMPANY POLICIES Old employees are not treated like fresh ones i-e employees hired after 1997 in bank. Staff discriminating policy is existing among employees due to

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which old ones are leaving the job. So far thousand of employees have either left the bank under golden hand shake scheme, volountary separation scheme or resigned form the service. SUPERVISION The supervision is restrictive towards the employees especially towards the old ones. Strict supervision decreases the level of satisfaction at work place. INTERPERSONEL RELATIONS There is a quite difference in interpersonal relations of old and new employees.New staff employed after 1997 keeps the old employees at a distance.New employees mostly interact with one another. The management has failed to overcome this dissatisfaction.

WORKING CONDITIONS Working conditions available in HBL are causing dissatisfaction. Employees are over loaded with work which results in late hour sitting without any extra benefits. JOB SECURITY PAY There is a huge difference in salaries of new and old employees.New staff is given more salary than the old ones.Similarly, annual increase in salary of new employees is more than the old staff.

REWARDS:

HBL Units: HBL has given about 12000 units at 10 each to its permanent employees which is enough for them at the time of leaving the bank or on retirement.
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Rewards System: Pay For Performance: Annual increase in salary of employee is based on slogan of Pay for Performance. More jobperform the organization pay. Cash awards are also given to employees. Profit Shared: Profit shared through three bonuses to the employee is ensured in HBL. Employer Stock Ownership: HBL was given shares to selected employee while the stock was subscribed to the general public in Sep 2007.

LEADERSHIP
Leadership is the process of directing the behavior of others toward the accomplishment of objectives. Leadership has always been a prerequisite for organizational success. Leader versus Managers: Although some managers are leaders and some leaders are managers, leading and managing are not identical activities. Leadership, as one of the four primary activities of the influencing function, is a subset of management. Managing is much broader in scope than leading and focuses on non behavioral as well as behavioral issues. Leading emphasis mainly behavioral issues. Not all managers are leaders; the most effective managers over the long term are leaders. A manager makes sure that a job gets done, and a leader cares about and focuses on the people who do the job. QUALITIES OF A LEADER: The following are the qualities that all must be in a leader: 1. intelligence, including judgment and verbal ability
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2. 3. 4. 5. 6.

past achievement in scholarship and athletics emotional maturity and stability dependability, persistence, and a drive for continuing achievement the skill to participate socially and adapt to various groups a desire for status and socioeconomic position

If any of the quality is absent in the person then he is not a leader. Unfortunately there is not a single employee in the HBL who have all the above qualities. So, there is no leader in HBL.

A FOCUS ON LEADER BEHAVIOR:

The situational approach to leadership is a relatively modern view of leadership that suggests that successful leadership requires a unique combination of leaders, followers, and leadership situations. This interaction is commonly expressed in formula form: SL=f(L,F,S) where, SL= successful leadership f= function L=leader F= followers S=situation The successful leadership is a function of a leader, follower and situation that are appropriate for one another. Leadership Situations and Delegations: The most important tasks of a leader is making sound decisions, all practical and legitimate leadership thinking emphasizes decision making. This model is actually a continuum, or range, of leadership behavior available to managers when they are making decisions. Behavior at the extreme right characterizes the leader who makes decisions by exercising little control and allowing subordinates much freedom and self-direction. Behavior in between the extremes reflects graduations in leadership from autocratic to democratic. Managers displaying leadership behavior toward

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the right of the model are more democratic, and are called subordinatecentered leaders. Those displaying leadership behavior toward the left of the model are more autocratic, and are called boss-centered leaders.

Use of authority by the manager Area of freedom for subordinates

Manager makes decision and announc es it.

Managers sell decision

Manager presents ideas and invites questions

Manager presents tentative decision subject to change

A manager present problem gets suggestions makes decision

Manager defines limits asks group to make decision

Manager permits subordin ates to function within limits defined by superior

WOMEN AS LEADERS: In HBL women are being hired from different universities like IBA, LUMS etc. they are working in different departments as Relationship Manager, Compliance Officer, Auditor, Operation Manager, Branch Manager and other high position. Equal rights are given to them. A friendly and cooperative environment is given to them so that they feel comfortable in working at HBL.

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INFORMATION TECHNOLOGY
The way people do their banking is changing. HBL need to keep up with these changes if they are to stay competitive with this in mind they accelerated their plans to update their technology. Consolidating their customer database will enable different departments to share information more freely. This will help them make processing compliance, audit and financial reporting much faster and easier. It will also mean HBL will actively pursue exciting products like internet banking, debit cards and inter-bank transfers via ATM.s

HBL fully recognize the need for an efficient IT, system and believe in deploying capital and human resources to achieve the highest standards. Implementation of the state-of-the art technology banking software MISYS is well underway throughout the branch network. With the completion of its deployment, all 1437 branches will be able to offer a wider range of modern banking facilities, however remote their location maybe. Cutting-edge technology enables HBL to provide a full array of services to their corporate clients. Their products HBL e-Bank which incorporates safe, sound PC and Internet Banking facilities and real time online branch links, overrides the time zones and geographical distance for our clients who have 24/7 access to their accounts. hblEbank services

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hblEbank will provide the following facilities to the customers of offline MOBS and batch branches: CONVENIENCE access to their CA/SB accounts both in rupees and FCY from their desktop in office or home which will save them both time and money required for travelling and waiting at branches. 24 HOURS ACCESS: Customers can access their accounts at any time throughout the day or night. ECONOMICAL: All it takes to dial-up to the bank. No more going to bank for checking your account, transactions or balances. SECURITY: Customer decides who has access to his account through carefully controlled set of passwords. CONFIDENTIALITY: Data transmission to and from the customers to the bank is encrypted which ensures full data integrity giving the customer complete peace of mind. FRIENDLY: System is self-explanatory and extensive on-screen help is available besides formal documentation and training is also provided by the bank at the time of instillation. TWO VERSIONS OF hblEbank: PC Ebank Internet Ebank PC Ebank: This service is mainly for large corporate and commercial customers where they will be able to dial directly into the bank data base using specific telephone numbers. Through their PC modem it will provide quicker access and although the services being offered at present will be similar to the internet version. Going forward more services can be added.
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It has been decided that option will not be made available to customers of offline. MOBS and BATCH braches as corporate clients generally dont maintain accounts with them. INTERNET Ebank: This will be all customer both companies and individuals. Here they will be able to access the bank database internet service provider (ISP) by dialing into the bank's website. i-e https:/www.hblebank.com or by clicking on an icon the bank's main website i-e www.habibbankltd.com. SERVICES: Balance/statements for up to 180days starting from the date of sign up for hblEbank for all rupee /FCY current and saving accounts. ELECTRONIC BALANCING UNIT (EBU): EBU has been set up on the 6th floor,Habib Bank Plaza, Head Office Karachi to manage the services that will provided under hblEbank. EBU'S RESPONSIBILITIES: These mainly are: Registering customers identified by branches on hblEbank. Install software for the clients and PC customers. Unlocking of customers. Allocate password to clients. Providing training to PC module clients and give user guide. For internal banking clients provide passwords and user guide.

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CONTROL
Control may be defined as making something happen the way it was planned happen. Controlling Controlling is the process managers go through to control. It is a systematic effort to compare performance to predetermined standards, plans or objectives to determine whether performance is in line with those standards or needs to be corrected. HBL had Internal Control Department (Now Compliance Group) which ensured proper controls in the organization. All the instructional and informational circulars are issued by consulting them. Types of Controls There are three (3) types of management controls which are as under: 1. 2. 3. 1. Precontrol It is control which takes place before work is performed. To determine precontrol, policies & procedures and rules are created aimed at eliminating behavior that will cause undesired work results. Precontol Concurrent control Feedback control

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In HBL, Compliance Group is tasked to have precontrols before performance of a transaction. All the policies and procedures created are evaluated by them before implementation. Precontrols exist in HBL.

2. Concurrent Control It is the control that takes place as work is being performed is called Concurrent Control. It not only relates to human performance but it also relates to nonhuman areas as equipment performance and department appearance. In HBL, concurrent controls exist while performing the job manually or through system. If the job is being performed through system i.e. MISYS (software for performance of daily banking transactions installed at head office and line with branches), the well defined security controls are in place. Hence every transaction whether it is performed manually or through system, the well defined procedure is in place for observance of the employees while completing the work. 3. Feedback Control It is the control that takes place after the work has been completed. Control that concentrates on past performance of the organization called as Feedback control. With the help of this control corrective actions/measures are taken looking into past history of the organization over a specified time period. In HBL, on introduction of any new product whether it is consumer or commercial, the feedback is taken and corrective actions are taken to correct the situation
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where numbers of customer complaints are being received or the product has some built in problem and not based on customers satisfaction. In the present environment, it has been vital for the banks or any other industry to have proper feedback of the transactions to take remedial measures.

Control Process
The control process is a continuous flow between measuring, comparing and action. There are four steps in the control process. Establishing performance standards measuring actual performance, comparing measured performance against established standards, and taking corrective action.

Step 1. Establish Performance Standards.

Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time.

Step 2. Measure Actual Performance.

Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, inspection reports, Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people. Supervisors have

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access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic or computer-driven control systems. Impersonal measurements can count, time, and record employee performance.

Step 3. Compare Measured Performance Against Established Standards.

Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4. Take Corrective Action.

The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient; however basic corrective action is the more effective.

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AFTER PRIVATIZATION
Change in management Freedom in decision making Fast decision making IT based system Quality staff included Independence in hiring process Golden share hand scheme is introduced due to which the staff reduced and fresh one with better education background are being hired Every year promotion. Earlier promotion was after 4 years Better training process Improvement in customer services

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Recommendations and Conclusion

1. HBL is the first Pakistani Bank, which after creation of the country looked after the financial needs of the then Government. It provided support to economic, industrial financial and banking sectors of the country resulting in establishment of industry in the country. HBL should help grow the industrial activities by financing industrial sector. It will help to create more jobs. 2. Before privatization, HBL was conservative approach. It is now an aggressive and progressive bank of the country as evident by its products i.e. Auto /Personal /Mortgage Loans. It is a market player. HBL should target the middle class to enhance its market share. 3. HBL being a local bank has also existence in 24 countries of the world. It has started to relocate its position in international market. It sold its Fiji and Australian Operations and opened its rep. office in China and two more Branches in Bangladesh and one more in Afghanistan. In future, it has planned to start its Operations in South Africa and Central Asian States. HBL should relocate its operations as soon as possible and should sell its operations running into loss to utilize the resources for better location. 4. HBL has upgraded its system by installing MISYS to ensure real time banking at its about 300 local and overseas locations. It should put its remaining branches on the new system as early as possible.

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5. HBL has vast network and no other bank will be able to compete it and its market share may enhance. Bank should effectively utilize its vast network to capture market share. 6. It has reduced its staff strength resulting in reduction its administrative cost. The resources should be directed for upgrading branches. 7. It is hiring/recruiting professionals in middle and lower management to achieve organizational goal. Fresh graduates from the universities preferably IBA /LUMS are being offered jobs. It is providing job opportunities at different levels. On job training and job rotation for the employees is ensured. HBL should recruit from all the universities. Written test should be compulsory for all the fresh graduates. 8. HBL is observing Anti Money laundering(AML) directives of the SBP and has strengthened its controls not to allow its channels for bad money. On detection of a suspicious transaction, the same is reported to its Head Office and SBP. HBL should send all the staff on AML Training Program. 9. HBL is also discharging its social corporate responsibilities. It has given jobs to the players to help the support activities in the country. HBL should offer more jobs to the players. 10. HBL should use Human Resource Inventory System.

11. Assessment centre program should introduce in selection process.

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