PROJECT

REPORT ON
HABIB BANK
LIMITED
OF

PRINCIPLES OF MANAGEMENT
SUBMITTED TO
SIR USMAN ALEEM
1

TABLE OF CONTENTS
S. No

Page #

GROUP MEMBERS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

INTRODUCTION

5
6
7
8

HISTORY
ORGANIZATIOANL PROFILE
VISSION, MISSION
VALUES

7, 8
9
10
11, 12

SOCIAL RESPOSIBILITIES

13

10

HIERARCHY OF HBL

14

11

MANAGEMENT FUNCTION

15, 16

12

ORGANIZATIONAL STRUCTURE

17

13

DEICISON MAKING AND PLICY

18

14

MANAGERS DECISIONS

19

15

TYPES OF DECISIONS

19

16

DIFFERENT CULTURESOF HBL

22

17

HUMAN RESOURCE MANAGEMENT

25

18
19
20
21
2

Contents

MOTIVATION
EMPLOYEES PERFORMANCE MANAGEMENT
SWOT ANALYSIS
CONCLUSION AND RECOMMENDATIONS

26
27
27
29, 30

GROUP MEMBERS

Marvi Zaib

7796

Noman Aslam

7618

Irfan Ali

7737

Aqsa Urooj

7826

Iqra Tahseen

7586

Abdullah Bin M

6997

WE START OUR PROJECT REPORT WITH THIS QURANIC VERSE

Verily We created man from a product of wet earth; then placed him as a drop (of
seed) in a safe lodging; then We fashioned the drop into a clot, then We fashioned
the clot into a little lump, then We fashioned the little lump into bones, then
clothed the bones with flesh, and then produced it another creation. So blessed be
Allah, the Best of Creators! [23:12-14]

ACKNOWLEDGEMENT

We are heartily thankful to our PRINCIPLES OF

MANAGEMENT teacher, SIR USMAN KHALID whose
encouragement, guidance and support from initial to the final
level enabled us to develop our skills and also helped us to
give our best in project work. With his dedicated lectures We
4

were able to practically understand and apply what We have

learned in the classes

EXECUTIVE SUMMARY
This project report is all about the management
Strategies adopted by HABIB BANK LIMITED. In this
project report we did a detailed study about HABIB
BANK LIMITED vision, mission, organizational
Structure, policies, strategies, working styles of
organization, decision making styles , SWOT analysis etc.
As a part of our project we conducted questionnaires,
interview from MUHAMMAD AASIF NASEER branch
of
whos post is BRANCH MANAGER at HABIB
BANK LIMITED BRANCH AT PAF BASE
MASROOR and searched data from internet and
collected information from organization.
After having a thorough study we came up with some
conclusions and gave few recommendations in this
project report.

INTRODUCTION ABOUT HABIB

BANK LIMITED
Habib Bank Limited commonly referred to as "HBL" and
head-quartered in Habib Bank Plaza, Karachi, Pakistan, is
the largest bank in Pakistan. The bank has a network of 1425
branches in Pakistan and 55 branches worldwide. It has a
domestic market share of over 40%. It continues to dominate
the commercial banking sector with a major market share in
inward foreign remittances (55%) and loans to small
industries, traders and farmers. Overseas, it has operations
in the following countries:
Afganistan, Australia, Bahrain, Bangladesh, Belgium,
Canada, China, France, Hong Kong, Iran, Kenya,
6

Lebanon, Maldives, Nepal, Netherlands, Nigeria, Oman,

Singapore, Sri Lanka, Turkey, UAE, UK & USA.

HISTORY OF HABIB BANK

LIMITED
Habib Bank Limited (HBL) was established on 25th
August 1941 just one year after the historic Pakistan
resolution was adopted in Lahore for carving an
independent homeland for the Muslims of subcontinent. It
was founded with the blessing of Quaid-e-Azam (Great
Leader) Mohammad Ali Jinnah, the architect and founder
of Pakistan.
We are proud of the fact that the Quaid-E-Azam
demonstrated his faith and confidence in HBL by opening
his personal account in our Bombay branch in the year
1946.
The first prime minister of Pakistan Quaid-e-Millat
Liaqat Ali Khan, on the independence day of Pakistan
(August 14, 1947) appreciated the service of the bank in
these words.
7

I wish every success to HBL and hope

that it will continue to play an important
and
useful role
commercial
nation

in the industrial and

life
of
the
Muslim

The commitment of HBL towards the cause of the

economic uplift of Pakistani people was successfully
tested when the subcontinent was partitioned in 1947.
The new born country faced serious financial difficulties.
Habib Bank joined hands with the government of
Pakistan and placed all its services at their disposal for
nation building activities.
Throughout the decades, HBL has held the mantle
of a dynamic leader, by adding value to the lives of its
customers.
It was HBL that introduced products such as Debit Cards,
ATMs, Travellers Cheques, etc., to the Pakistani market.
We at Habib Bank cater to the needs of millions with our
quality products & services. Today, Habib Bank is truly
the bank of the people, providing its customers
convenience and satisfaction all over the world. Habib
Bank Plaza, the second tallest building in Pakistan, is the
proud symbol of HBLs leadership in Pakistans
corporate arena.
8

ORGANIZATIONAL PROFILE OF
HABIB BANK LIMITED
Name of Organization:

Habib Bank Limited

President and Chief

Executive Officer:

NAUMAN K.DAR

Head Office:

Habib Plaza, I.I.

Chundrigar Road, Karachi

Bank help line:

Product Information:
Fax:

75650. HBL Phone Banking:

111-111-425
111-33-44-55
2411647

VISION OF HABIB BANK LIMITED

To be the premier organizations operating locally

and internationally that provides the complete range of
financial services to all segments under one roof.

MISSION OF PAK SUZUKI MOTOR

HBL is a client-oriented bank and its mission is:

To be recognized as the leading financial institution of
Pakistan and a dynamic international bank in the
emerging markets, providing our customers with a
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premium set of innovative products and services, and

granting superior value to our stakeholders
shareholders, customers and employees.

11

VALUES OF HABIB BANK LIMTIED

HBLs values are the fundamental principles that define its
culture and are brought to life in its attitudes and behavior. It
is companys values that markets its unique and
unmistakable. Company values are defined below:
Excellence

Integrity
Customer focus
Meritocracy
Progressiveness

EXCELLENCE
This is at the core of everything HBL does. The markets in
which HBL operates are becoming increasingly competitive,
giving their customers an abundance of choice. Only through
being the very best - in terms of the service HBL offers, its
products and premises - can it hope to be successful and
grow.

12

INTEGRITY
HBL is the leading bank in Pakistan and its success depends
upon trust. Its customers - and society in general - expect it
to possess and steadfastly adhere to high moral principles
and professional standards.

CUSTOMER FOCUS
HBL understands fully the needs of its customers and adapts
its products and services to meet these. HBL always strives to
put the satisfaction of its customers first.

MERITOCRACY
HBL believes in giving opportunities and advantages to its
employees on the basis of their ability. HBL believes in
rewarding achievement and in providing first-class career
opportunities for all.

13

PROGRESSIVENESS
HBL believes in the advancement of society through the
adoption of enlightened working practices, innovative new
products and processes, and a spirit of enterprise.

SOCIAL RESPONSIBILITIES OF
HABIB BANK LIMITRED
The Bank is fully committed to the concept of
Corporate Social Responsibility and fulfills this
responsibility by engaging in a wide range of activities which
include
Donation amounting to Rs 48.8 million during the year 2014
for social and educational development and welfare of
under-privileged people.
Energy conservation, environmental protection, and
occupational safety and health by restricting unnecessary
lighting, implementing tobacco control law and No Smoking
Zone
Business ethics and anti-corruption measures, requiring all
staff members to comply with the Banks Code of Conduct;
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HIERARCHY OF
HABIB BANK LIMITED

15

MANAGEMENT FUNCTIONS

16

PLANNING
In HBL, planning is done by top managers.

ORGANIZING
HBL organization believes in participative and
collective endeavors, a common set of goals and a
spirit to share the glory and the strength to face failures
together. And there is also a high degree of interaction
among department managers.

LEADING
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The approach established in HBL is team

leadership approach and the positive attitude of
HBL employees towards their job is because of
increasing employee job satisfaction.

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

ORGANIZATIONAL STRUCTURE
AND DESIGN

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The HBL is divided in main group in its organization

structure. The one which performs the core business
activities and the second which perform the support
activities to achieve the business object effectively and
efficiently. Further division of these groups is given
below.

DECISION MAKING AND

POLICY MAKING
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CENTRALIZED
All major policies, plans, rules and regulations and
controls etc. are devised by head office of Habib
Bank Ltd in Karachi. Then these policies are
conveyed to the regional heads and branch heads.

DECENTRALIZED
All routine maters are decided at branch level by the
respective heads of departments with permission of
branch head. If any problem or matter is beyond
limits of branch, then it is referred to the Regional
Head quarter.

MANAGERS DECISIONS
Mostly at HBL, managers decisions are Rational
and intuition base.
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INTUITION
EXPERIENCED BASED DECISIONS
SUBCONTIOUS MENTAL
COGNITIVE BASED
AFFECT INITIATED
VALUES OR ETHICS BASED DECISION

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

COLLECTIVE PARTICIPATION IN
DECISION MAKING
21

Department heads meet frequently with each other

and discuss problem with each other if any. They
seek advice from each other and also the branch
head is also available to all department heads to
review or control the functions of bank.

EMPLOYES PARTICIPATION
The management is receptive to new ideas like for
marketing some facility or improving any
procedure, etc.

DELEGATION OF POWER

22

Delegation means giving the authority to lower

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

At HBL we have created a challenging environment

that encourages creativity and commitment. In our
pursuit of excellence, we are focused on attracting,
developing and retaining the best talent in the
marketplace. Our dynamic culture offers diverse growth
opportunities across Pakistan and in 25 countries
around the world. HBL fosters a work environment where
employees can realize their potential whether locally or
23

DIFFERENT CULTURES
HABIB BANK LIMITED FOLLOWS
in the international arena. Thus, we enable our
employees to achieve their professional goals while
keeping in synch with the banks overall objectives.

HBL has innovative culture. HBL promotes the new

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

CUSTOMER RESPONSIVE
INNOVATIVE
CULTURE
CULTURE

24

HBL has customer responsive culture. The employees of

the HBL continues in their desire to please the
customers and provide good service to their customers
and satisfy the needs of customers.

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

TRUST AND OPENNESS

25

In HBL, top management have full trust on their

employees. Mostly employees are honest and the

EMPLOYEES EMPOWERMENT
In HBL, managers have trust on their employees and they
want that their employees also try to make decisions at
their own job level.

TOLERATION OF EMLOYEES
EXPRESSIONS
In HBL, there is no toleration of employees expression.

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

HUMAN RESOURCE GROUP

Human Resource Group (HRG) encourages and
motivates its employees to excel in the responsibility that
they have in the organization. They believe that creativity
and innovation comes from talent, knowledge and
experience and they provide and maintain an environment
which not only nourishes these strengths but also provides
27

opportunities for the staff to have a career which has

multidimensional growth opportunities.
HRG therefore recognizes the need to proactively invest
in staff training and develop courses on a regular basis.
During 2003, 529 courses, workshops, skill development
clinics and seminars in the disciplines of Service &
Attitude, Market Research & Selling, Management &
Communication, Credit & Finance, I.T. & e-Banking,
Global/ Domestic Banking Operations and on other
diverse subjects

MOTIVATION
In HBL, the employees are motivated by giving them
bonuses, compensations and other facilities necessary
for living a good life that fulfils their social and the

CAREER DEVELOPMENT
safety needs.
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There are great chances of promotion for the hard

working employees and for those who shoe their best
performance and achieve the goal effectively and
efficiently.

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

SWOT ANALYSIS OF
HABIB BANK LIMITED
STRENGTHS

An old and well established organization

Customers are loyal

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 It is a well known organization.

Good reputation

WEAKNESSES

Organization is quite behind in the field of IT. its

employees lack IT KNOWLEDGE.

Out of 1400 branches only 600 branches provide online

banking facility.

Overstaffing is serious problem for the organization.

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

OPPORTUNITIES
Our Internship Program offers promising students with
the exciting opportunity to apply their classroom
learning experience to real life corporate assignments.

30

 HBL provide good opportunities for the employees in

developing their careers.

CONCLUSION
HBL is the pioneer in the banking sector. Its the largest
bank in the private sector and since its establishment it has
progressed and improved tremendously and has a customer
base exceeding 5 million. HBL is most stable of all banks in
Pakistan. HBL was the first bank who came up with
brilliant ideas of credit cards , ATM machines, debit cards
etc. HBL has a strong position in the stock market too.

31

RECOMMENDATIONS

Eliminate the cost of online banking since they charge cost

of online transaction or transfer.
HBL is initiator of Tele-banking service which is unique
service in Pakistan. Through this service we can get
information about our personal account on telephone.
Most of times customers find the service operator busy.
HBL should increase their tele-banking service center.
They should increase their pace of hiring youngsters as
other banks are doing successfully. They should provide
more and more opportunities to fresh graduates and
masters.

32

At many occasions HBLs ATM network gets slow and their

ATM machines dont allow for transaction they should
renew their ATM links in order to make their customers
avoiding inconvenience.