HBL and STANDARD CHARTERED

[2009
TERM REPORT ]
(COMPARATIVE ANALYSIS
OF HBL & ALFALAH BANK)
SUBMITTED TO:
MAÀM AMNA YOUSUFDFDSFDSFSDFSDF
SEC.: “D”HUM HUMAN RESOURCE

MANAGEMENT
(TERM REPORT)
SUBMITTED TO:
AMNA YOUSUF
SUBMITTED BY:
Hamza Ismail (8105)
Mehwish Zia (7731)
Nizamuddin Shah
Sarosh Anjum (8181)
Sonia Kazi (8055)
SEC.: D
DATED:
DECEMBER 15, 2009
INSTITUTE OF BUSINESS MANAGEMENT
HAMZA ISMAIL (8105)

MEHWISH ZIA (7731)
HUMAN RESOURCE MANAGEMENT Page 2

NIZAMUDIA ACKNOWLEDGMENT
“Proclaim in the name of the Lord and Cherisher, who created

man, out of a clot congealed blood. Proclaim! And thy Lord is
most Bountiful.”
This report is the result of work completed at the Institute

Of Business Management. Working on the report was a
true learning experience.
We would like to thank Maàm Amna Yousuf as our

teacher and lecturer for his patience and unsurpassed
inculcation of his vast experience. To our family for always
being there... the encouragement and moral support they
provided when we needed them.
We hope that this knowledge will benefit us in the years

to come.

LETTER OF TRANSMITTAL
December 15, 2009
Amna Yousuf
Instructor for Human Resource Management
Institute Of Business Management
Karachi
Dear Maàm:
Here is the report on “HR practices of targeted company and Benchmark Company” that
you assigned to us in early December 2009. We opted for HBL as targeted company & Alafalah
Bank as Benchmark Company. The report includes information through primary as well as
secondary sources on the HR practices of HBL & Alfalah Bank. The purpose of this report is to
elaborate the comparison of both the companies and discuss the problems and recommendations.
It has been a privilege to work on this project and we have put in our utmost efforts to prepare as
comprehensive a report on the topic as possible. The report, however, may be short of any kind
of statistical data due to the confidentiality policy of Habib Bank Limited and Alfalah Bank.
If you have any query concerning the report, we will be happy to discuss them with you.
Sincerely,
Hamza Ismail
Mehwish Zia
Nizamuddin Shah
Sarosh Anjum
Sonia Kazi

LETTER OF AUTHORIZATION
Institute of Business Management

Korangi Creek, Karachi-75190, Pakistan
UAN (9221)111-002-004, Fax: (9221) 509-0968
Http://www.iobm.edu.pk
December 10, 2010
Dear Reader,
It is an honor for us to prepare the report on “The comparison of HBL’s HR

system (weak practices) with Bank Alfalah, Top Employer of Pakistan” which
was assigned to us by our respected teacher Ms.Amna Yousaf. We would like to thank
her for providing us information and guidance throughout the semester in order to
materialize our content for the report.
The primary source of the information for this report is the HR Head of HBL & the
employees from both the organizations. While the secondary sorurce of information
was the HR Manual of Bank Alfalah.We could not have achieved this task without the
cooperation of Ms. Naila Sajjadof HBL, Mr. Ch. Anjum Shaheen of HBL, and Mr. Zia of
HBL, Mr. A. Saeed of Bank Alfalah. They took time out of their busy schedules to aid us
in our report and for that; we owe them a debt of gratitude.
It was a pleasure creating such a report, on a topic so informative and practical.
Sincerely yours,
• Sarosh Anjum (8181)
• Mehwish Zia (7731)
• Sonia Kazi (8055)

• Hamza Ismail (8105)
• Nizam uddin Shah (
EXECUTIVE SUMMARY
The task of this report is to examine the HR system of targeted company and compare it with any
Top Employer (Benchmark Company). We selected Bank Alfalah as the bench mark company
and HBL as targeted company. The report includes a brief introduction of both the organizations
and the problems and deficiencies of targeted company, the sources of the problems and the
recommendations for the solution of the particular problems.
We found the employee turnover, compensation packages, performance appraisal, training, and
employee development as the major areas where problems exist at HBL. In compensation plans
the medical facility and provident fund were major issues. In performance appraisal the policy of
promotion was the major problem. In training the procedure used for analyzing training needs
was not appropriate.
For this project we drafted questionnaires and then visited both the organizations to get the basic
ideas about both the organizations.
Report could be short of any statistical data due to confidentiality policy of HBL and bank
Alfalah. However, the responses to questionnaire help us to a large extent in obtaining the data
and figures regarding the HR department`s policies and practices.
Moreover, along with comparative analysis of both the organizations, we have also discussed the
recommendations for improvement.
In a nutshell, the report was a true learning experience for us.

TABLE OF CONTENTS

INTRODUCTION
PURPOSE STATEMENT
The purpose of writing this report is to compare the Human Resource Practices of
Habib Bank Limited with the benchmark i.e. Bank Alflah.
INTRODUCTION OF BANK ALFALAH

Bank Alfalah Limited was incorporated in June 21st, 1997 as a Public Limited Company
under company ordinance 1984, its banking operations commenced from Nov 01, 1997.
The bank is engaged in commercial Banking and related services as defined in the
banking companies ordinance, 1962.
Bank Alfalah has emerged as one of the leading commercial bank in the financial sector
of Pakistan. Bank has made significant contribution in building and strengthening both
the corporate and retail banking in Pakistan. Most of its share are owned by a
consortium of Abu Dhabi after the debacle of BCCI, the Ministry of finance acquired its
three branches and Habib Credit and Exchange Bank was incorporate on June 21st,
1992 as Public Limited Company under the companies ordinance4 1984, and
commenced banking operation from Nov. 01st 1992. It is engaged in commercial
banking and related service as defined in the banking companies ordinance, 1962.
Following the privatization in July, 1997 Habib Credit and Exchange Bank, assumed the
new identity of Bank Alfalah on February 25, 1998 and with this a challenge was
launched the challenge to transform this bank into a highly professional most efficient
and service oriented institution.
Charged with the strength of the Abu- Dhabi based consortium and under the
leadership of his Highness Sheikh Nahayan Mubarak Al- Nahayan, Minster of Education
Govt. of Abu- Dhabi and a prominent member of Royal family the Bank is energized by
the vision of the development of consumer sector in Pakistan.
Prioritizing its product portfolio in line with consumer needs and wants the bank is
committed to develop product that give more value to its customer be it is a simple bank
account or complex financial of a major project designing product. Portfolio in response
to customers preferences Bank’s product like Royal Profit, Royal Patriot and Royal
Custodial are prime examples of quality and innovation providing timely banking
opportunities to its customer.

Assessment of the needs and wants of its customer is an on going process at bank
Alfalah which help it to continually develop new product and services. Some of our new
products are ALFALAH MILKIAT FINANCE, ALFAHAL KAROBAR FINANCE, ALFALAH
QUICK FINANCE.
To continuously offer courteous professional and advanced banking solution banks

team has recently been energized by going through training programs with a focus on
information technology with a team of talented services dedicated professional bankers.
Bank Alfalah Limited commits all its energies resources and time to cater to all banking
and financial needs of customers.
To make banking solutions accessible to more and more people, Bank Alfalah Limited
has embraced upon a rapid expansion program. Aiming to provide networking that
makes its services available to any of its customer’s in all the major urban centre of
Pakistan with a view to go international with its key indicators of progress already
soaring to new heights the bank is committed to put all its energies resources and time
to bring higher value and satisfaction of its customers employees and share holder.
Technological developments are opening up new vistas of solutions of distributing

traditional financial product. Concurrently rapid change in customer preferences has
related in a major shift from manual to automated services of the bank. Information
technology today is the key of the bank to sustain and succeed into the corporate world.
Therefore, during the recent past, Bank Alfalah Limited made heavy investment to
wards exchanging its capabilities in the area of automation and technology. Bank
Alfalah Limited is well positioned to meet client needs with improved competitive
advantages. Bank Alfalah Limited is on the way of expansion of its business and
branches network presently, there are 295 branches of Bank Alfalah Limited spread all
over the Pakistan and 45 still in pipeline to covering major business centers and
principle cities
The Bank’s commitment to its customers is evident from its mission statement:
“To provide innovative and high quality product to its customers at the lowest possible
rates & to achieve all set goals regarding services performance and goodwill”
INTRODUCTION OF HABIB BANK LIMITED
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 bank’s 25th Anniversary.
With a domestic market share of over 40%, HBL was nationalized in 1974 and it
continued to dominate the commercial banking sector with a major market share in

inward foreign remittances (55%) and loans to small industries, traders and farmers.
International operations were expanded to include the USA, Singapore, Oman, Belgium,
Seychelles and Maldives and the Netherlands.
On 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.
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.
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 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 believe in rewarding achievement and in providing first-class career
opportunities for all.

SUCCESSION PLANNING
SUCCESSION PLANNING AT HBL:
It is actually management developing program. Management development is attempt to

improve current or future management
performance by imparting knowledge, changing
attitudes, or increasing skills. In order to achieve
management development, succession planning
is done. Succession planning is a process
through which senior-level openings are planned
for and eventually filled. The main purposes of
succession planning are Anticipate management needs, Review firm’s management
skills inventory, Create replacement charts, Begin management development. HBL’s
Management Trainee (MT) program deals with succession planning. MT is defined in
the following section of Training and developing methods.
HBL uses following programs for training and development
• Management Trainee
• Management associate
• Cash officers
• Internships
MANAGEMENT TRAINEE:
HBL’s Management Trainee (MT) program looks for highly motivated individuals who
exhibit the potential to excel as future leaders. The program is geared towards providing
challenging work assignments complemented by a learning component for select
individuals from reputable universities. At HBL, the MT program offers extensive
interactive classroom training, on the job rotations and personal mentoring from senior

management to provide a comprehensive learning experience. The objective of the
program is to realize potential and translate the experience into a successful banking
career.
MANAGEMENT ASSOCIATE:
HBL’s Management Associate Program is a training and rotational program focused on

dealing with branch banking requirements. It provides accelerated development
opportunities across HBL’s branch network of Retail, Corporate & Commercial banking.
During this program, candidates are assigned with challenging business scenarios to
enhance their critical and analytic skills. Another crucial element of the program ensures
that managerial skills are honed and developed. This provides associates with the
expertise required to handle supervisory and administrative tasks that will result in the
development of successful business managers.
CASH OFFICERS:
HBL’s Cash Officers Program catapults successful candidates to the front lines of the
bank. Candidates in this program are the bank’s ambassadors and must have
exemplary skills in dealing with clients. The program involves an extensive one-month
training period based on branch banking operations before placement in the branches.
Energetic and focused graduates from HEC recognized institutions with good
communication and interpersonal skills qualify for HBL’s Cash Officers Program. Before
being placed at HBL branches, these individuals must exhibit a proven ability to add
value and act as agents of change.
INTERNSHIPS:
HBL’s Internship Program offers promising students with the exciting opportunity to
apply their classroom learning experience to real life corporate assignments. Through
the program, internees can support their career goals by using the internship as a
launching pad for creating contacts with professionals in the field and identifying their
own competencies to build a successful career with HBL.

SUCCESSION PLANNING AT BANK ALFALAH LIMITED
Succession Planning is the process of systematically identifying all key positions within
Bank Alfalah (especially those which are likely to fall vacant or to open up in the near
future due to promotion, resignation or retirement). The next stages in the process are
to select and then to prepare candidates from within the Bank of these positions.
BENEFITS:
The primary benefit of succession planning is that a sequence

of personnel actions is initiated so that one or more candidates
are identified for each key position in advance of actual need.
This prior identification permits opportunities for mentoring and
developmental activities to improve their readiness to succeed
to specific positions. The benefits of succession planning are;
• Bank Alfalah limited would grow its own future managers

rather than recruiting outside the organization. These
managers will be fully conversant with the organizational
culture prevailing at the Bank.
• The learning curve for future managers to prepare for
meeting challenges of higher responsibility will shorten.
Commitment and loyalty among officers aspiring for higher positions will increase.
Morale and motivation will also be enhanced, while staff turnover will go down.
KEY ELEMENTS OF THE SUCCESSION PLANNING POLICY:
Bank Alfalah limited Succession plan to achieve its goals, the following key elements
are to be incorporated in its design:
• CEO and top management support

• Integration with strategic business planning and projected changes in the
organization
• Identification of critical management positions, skills required for incumbents and
gaps in management succession
• Time lines for filling succession gaps for organizational and individual needs
• Job profiling to identify critical competencies for effective performance in specific
jobs

• A system for communication of the succession planning process to field
management
• A system for identification, nomination and selection of successors, based on a
review of the data on all potential candidates, including appraisals of
performance and potential, experience and skills, education, salary history and
personal career goals
• Determination of training, development and experience needs of candidates,
including a system for monitoring, feedback and modification of such
development plans
A review of transfer and placement needs at the point in time when those individuals are
ready to advance.
CRITICAL POSITIONS TO BE FOCUSED:

Bank Alfalah limited Succession Plan is to focus on three tiers of management
personnel in all units of the Bank. Succession plans for senior management levels in
Tiers A (Senior Management) and Tier B (Managers of Branches/ Units) will be
overseen by HRD. Succession plans for Tier C positions (Departmental Heads at
Branches & Section Heads at HO/ Product Units) will be drawn and managed by
concerned management at Tiers A and B, having received guidance and training
towards this end from HRD.
TALENT POOL:
A Talent Pool of bright and young employees, having
post graduate degrees from reputable institutions and
two years’ experience with Bank Alfalah limited , will
be provided training and development, and will be
promoted to positions of higher responsibility on a
fast track basis.
TRAINING AND DEVELOPMENT NEEDS:

HRD and TDC Management, in consultation with
Senior Management of the Bank, will draw Training & Development plans for all officers
nominated as successors, as well as those placed in the Talent Pool. HR Committee
will monitor the progress of Training & Development Centres in providing focused
training to both the groups: Nominated Successors and Officers in the Talent Pool.
The following step by step plan is suggested for the implementation Bank Alfalah limited
Succession Planning Program:

1. HRD to institute a system of identifying gaps, getting successors nominated for Tier A
and Tier B positions and to prepare a quarterly progress report to be presented in
HRMC meetings
2. The HR Management Committee will review progress of succession planning

program during its quarterly meetings. The committee will have the authority and
responsibility to make decisions regarding ratification/ nomination of Bank Alfalah
limited staff as successors, as well as nomination to the talent pool. It will also have the
authority to place staff members nominated as successors, as well as those in a talent
pool, in managerial positions.
3. A Talent Pool is to be established consisting of potential candidates for managerial

positions. Staff placed in Talent Pool should also be available for assignment for vacant
successor positions with in their existing Branches/ Units/ Areas or in other units
throughout the network.
4. Training needs are to be identified, training programs developed (or identified

externally) and conducted for officers nominated as successors or placed in the Talent
Pool.
5. HRD is to periodically measure the success of the succession planning program and
process. A review and audit process should identify supply and demand, and verify
what is working and what is not. It should also track career paths of officers nominated
as successors, as well as those in the Talent Pool.

TRAINING & DEVELOPMENT
TRAINING:
Training is the process of developing qualities in human resources that will
enable them to be more productive.
PLANNING OF TRAINING NEEDS:
HBL:
Needs analysis: Identify job performance skills needed, assess prospective trainee’s
skills, and develop objectives At HBL training needs are analyzed by:
• Task analysis:
In this area a detailed study of a job to identify the specific skills required,
especially for new employees are analyzed.
• Performance analysis:
After analyze the main tasks required in performing jobs it is verified that there is
a performance deficiency and determining whether that deficiency should be
corrected through training or through some other means
(such as transferring the employee). If there is found some
deficiency in performing job then training is highly
recommended to recover deficiencies.
BAL -- BANK OF ALFALAH:

The objectives of training activities are to keep Bank of Alafalah employees abreast of
latest professional knowledge and skills in all areas of banking, as well as to reinforce a
passion for the highest quality of customer service at all levels. For this purpose a
systematic approach for conducting Training needs Analysis (TNA) on scientific basis is
being developed by a sub-committee of Learning Council comprising of members from
Training and development Centre and HRD. The proposed TNA exercise will be
launched as soon as it is fine-tuned and after taking all the stake-holders into
confidence. Further BAL takes following steps:

• Annual Training Plan
An Annual Training Plan shall be circulated on quarterly basis for both Training
and Development Centres, keeping in view the requirements of various
departments of the Bank currently identified through the annual appraisal form
and feedback from Audit Division. After conducting the TNA, this training plan will
be more reflective of actual training needs of our staff. The plan would list all
workshops, courses & seminars to be offered during the quarter.
COMPARATIVE ANALYSIS:
• BAL is following a formal planning system by creating committed and Training

centers which will analyze the training needs while HBL lacks in formal planning.
Simply analyzing the needs is not sufficient. There should be a formal plan like
that of BAL enlisting all the activities and plans which are to be scheduled for
training.
• BAL creates a detailed plan enlisting all workshops, courses & seminars to be
offered during the training whereas at HBL only performance deficiencies are
figured out with no planning in mind as how to remove these deficiencies by
training. HBL need to make an effort to design the plan for how to train and to
what extent to train EACH individual because individual differences are
inevitable.
NEW JOINER`S TRAINING
HBL
After selection, three months training is required at Management and Development
Institute only at Karachi, Lahore and Islamabad for those who don’t have any work
experience in banking sector.
New employees are trained through coaching. HBL follows following programmes for
new joiner`s training however they are also used for senior levels also.
• Apprenticeship Training: It is actually combination of OJT and lectures

delivered to employees. It may be for both levels of managerial and fresh

employee. In this method employee is first given the lecture about his/her job and
after that implementation of lecture in practical field is observed.
• Effective Lectures: These lectures are delivered to new employees as well as

senior level employees and managerial level too. In these lectures employees
are prepared for facing new challenges in the banking sectors and also told them
how to achieve those challenges.
BAL
All newly inducted staff members are provided systematic training in groups at Bank’s
Training & Development Centers at Karachi or Lahore, to make them well conversant
with Bank’s operating procedures, rules, history and culture before they commence their
job with the Bank. Furthermore, the purpose of this training programme is to emphasize
on customer service, courtesy and manner, as well as a number of other unique focus
areas.
• Training plan for new joiners:
Category Total Duration
For Branch Five days (Two days of orientation training., followed by three days
Officers of technical training)
For Branch Dept. Four days (Two days of orientation training, followed by two days of
Heads technical training)
First and third Mondays of every month, training courses will be

Programme organized in small batches. In some cases, training will be imparted
Structure through individual instruction and systematic and guided study of
operational manuals (followed by quizzes).
Mostly in-house faculty, plus some field specialists. For Branch

Managers’ orientation session, concerned Area Manager and one or
Faculty
two available Group Heads/ GMs will be invited for discussions/
presentations.
Detailed contents are handed over to candidates upon their arrival at

Course Contents
the TDC.

• Both the banks have their training and development centers at Karachi & Lahore
for New employee`s training.
• At HBL training is done with lectures and apprenticeship programmes while BAL
follows a training plan showing total duration, course contents etc. required for
training. Although HBL is on a right path, it is advisable for HBL to construct a
detailed plan like that of BAL as it will be convenient for both trainer and trainee.
Trainee will know what is expected of him/her by this plan while trainer can
schedule his/her activities then accordingly.
MOTIVATION
HBL
Nothing is mandatory for employees at HBL as regard to training. However, HBL

encourages its employees to participate in the seminars arranged by banking sectors
not just in the Pakistan but also beyond the boarders.
BAL
• Minimum Training for All: At BAL, it is obligatory for each employee of the Bank
to attend at least two days of training in a calendar year. Branches, Area Offices
and Head Office Divisions/Departments are to send their nominations for training
courses in advance (as prescribed by the concerned Training & Development
Centre). Employees are encouraged to take initiative and get them nominated
through their supervising officers for training courses relevant to their needs.

• Branch Managers’ Mandatory Training: All Branch Managers are also required
to undergo one-month comprehensive training to equip themselves with up to
date skills in areas of banking, management, customer service, personal
effectiveness and IT etc. Such training is usually divided into four one-week
modules in each quarter.
• At BAL it is obligatory for employees to undergo training sessions whereas at

HBL there is no such condition as “obligatory” imposed. Consequently,
employees at HBL don’t bother to get their names nominated for training due to
which they`re unable to learn new skills. Further, they`re not motivated to
participate. So basically, the element of motivation is missing at HBL which
should be revived so that employees could be trained. When they will participate
and get to know new skills then only they can be motivated and this could be
happen only if HBL will impose condition of mandatory training.
• Although HBL does motivate employees (managerial level employees) for ex

house training i.e. to send employees abroad for training to attend seminars, it is
better for HBL to have mandatory training at least for two or four weeks like at
BAL, at which each employees has to undergo training session of two days and
for branch managers it is one month.
EXTERNAL TRAINING
HBL
Outside seminars: HBL encourages its employees to participate in the seminars
arranged by banking sectors not just in the Pakistan but also beyond the boarders. By
participating in outside seminars, employee gets authentic knowledge about the new
horizons of banking sector which is useful for HBL and makes it leading bank in
Pakistan.
BAL
In order to augment in-house training efforts, external training providers will be utilized
on a periodic basis, by nominating Bank Alfalah’s employees to external courses.

Alternatively, external training consultants may be invited to conduct training programs
exclusively for BAL employees, whenever deemed necessary.
• Apparently, there is no concept of external training at HBL except Outside

Seminars which is only for managerial employees while at BAL external training
consultants are invited to conduct training programs exclusively for BAL
employees.
• HBL can also follow the path similar to Alfalah and can introduce the concept of
external training. This could lead HBL to success as external training is an
important as well as though provoking activity for employees.

TURNOVER
OVER-STAFFING:
HBL before privatization had more than 31000

employees, management and non- management, they
aimed to reduce this number to 27000 employees with
the help of its new policies.
POLITICAL PRESSURE:
Before privatization HBL was highly influenced by the

governmental policies as it was the largest financial
institute under government control. The economic
policies of the country were also affecting the bank’s
policies. The problem occurred mainly because of the
unstable political situation in Pakistan which was
causing the huge fluctuations in governmental policies resulting in the inconsistency of
HBL’s policies which led to the inefficient results. The motive of privatization was to
make HBL as independent as possible.
LACK OF PRE AND POST DISPUTE ANALYSIS:

HBL lacks a pre and post dispute resolution analysis this means that there is no
analysis or interpretation of where the organization wanted to be and where it actually is
after implementation of the process of resolution and there were no proper guidelines
giving directions to take about the conflict resolution process. Hence, this resulted in
failure in having effective resolution process and there was no proper comparison or
evaluation of whether the organization has achieved its desired state can be done
giving a rather blur picture to both employees and management and leaving them
confused about whether implementing such a process is cost and time worthy in the
future since they do not know the pros and cons of this system.
For example, when HBL decided to downsize and make certain employees quit, they
were not completely sure of whether doing so is likely to give them the desired
outcomes rather they were just hitting the ball blindfolded and simply hoped to achieve
what they want .furthermore, when HBL went towards retrenchment, and successfully
but with great difficulty achieved it, managers did not do any proper formal analysis with
the top executives of what were the difficulties they faced and how to make sure they do
not reappear in the future when they take such a crucial action. Also, there was no
evaluation of results the conflict appearing from retrenchment brought to them.
Moreover, no analysis of how to implement safety measures to avoid facing the same
conflict again was done.

NO JOB SECURITY FOR THE EMPLOYEES:
In the past, employment at HBL was typically seen as long term relationship between
HBL competing in expanding markets and hourly wage workers or salaried managers.
But today’s employment relationship at HBL is very different. Increased participation of
young workers and fresh graduates, the prevalence of part-time or temporary workers,
increased risk of permanent job loss, and other similar factors have changed the basic
employment contract and introduced continuing uncertainty into the employment
relationship for the remaining employees after retrenchment as well due to which
problems arises in the dispute resolution system and the main problem is that while
minimizing conflict, another issue of job security for the temporary and for the remaining
employees arises as well.

PERFORMANCE MANAGEMENT AND
APPRAISAL
Evaluating an employee’s current and past performance relative

to its performance standards is called performance appraisal.
A process that consolidates goal settings, performance appraisal,
and development into a single common system to ensure that
employee’s performance is according to company’s aims is called
performance management.
PERFORMANCE MANAGEMENT AND APPRAISAL AT HBL:

Performance appraisal is the process of reviewing past productive activity to evaluate
the contribution individuals have made toward attaining management system objectives.
HBL’s performance management and reward systems ensure that goals are met in an
effective and efficient manner. HBL defines a clear path for you to contribute to the
organization’s overall goals, peppered with regular reviews and feedback to help you
gauge your progress. At HBL growth is not a function of time but rather of performance.
As your performance improves, the role that you play within the organization will
accelerate to reflect your input. HBL generally uses BARS (Behaviorally anchored
rating scale) it is an appraisal method that uses quantified scale with specific
narrative examples of good and poor performance.
PERFORMANCE APPRAISAL FORM OF HBL:

HBL’s performance appraisal form contains two sheets, one is FORM B2 and other is
FORM B3.
FORM B2
It contains appraisal for Clerical staff at branch or Field Offices there are two main
headings Area/factors and level of achievement points. Level of achievement point
contains five points ratings.
A (Excellent), B (very good), C (good), D (unsatisfactory) and N/A. AREA/factors
contains five kind of factors which are
• A-Productivity
• B-Individual \attributes
• C-Technology
• D-Customer Service

• E-Personal
Each area is further categorized in different factors.
A-Productivity contains
1. Job knowledge
2. TD clearing/Bills Ledger Posting
3. Timely Lodgment of Clearing
4. Followed Return unpaid cheques
5. Nothing of Stop Payment Instruction
6. Volume of Work Handled
7. Accuracy & Attention to Detail
8. Willingness & Ability to work with other units/people
9. Ability to write Effectively
10. Adoptability of new assignments
11. Deposit Mobilization /saving/current CPDC etc
12. Number of fresh account arranged
13. Reduction in customer complaint
14. Hajj application target
15. Timely Balancing of branch ledger/books etc
16. Accuracy in counting/cash handling & counting speed
17. Receiving of payments of utilities
18. Dispatch of requisite statements
19. Maintenance of guns in order
20. Zero theft
21. Delivery of letter/Dak in time
22. Quality of work
23. Speed of work
24. Filing and record keeping
25. Typing/data entry speed
26. Typing/data entry accuracy
B-Individual Attributes contains

1. Professional/technical knowledge & competency
2. Initiative (eagerness to learn, enlarge knowledge)
3. Reaction to responsibility
4. Sense of responsibility
5. Oral communication Ability
6. Written communication ability
7. Sorting of notes
8. Cash excess/shortage situation
9. Performing under pressure

10. Ability to work without supervision
11. Willing to work after office hours
C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail
D-Customer contains
1. Courtesy to Customer
2. Rapport with customer
3. Creative response to customer needs
4. Business sense (maximum revenue/ minimum cost)
E-Personal contains
1. Health & energy
2. Appearance
3. Integrity & loyalty
4. Grooming
5. Manner of speech
6. Attitude
7. Intelligence
8. Leave record
9. Attendance record
10. Punctuality
Each factor is marked tick against level of achievement and in the end total points
scored is written in the specific box. Also the signatures of appraisee and appraiser are
taken.
FORM B3:
This form contains two big boxes. First box is about Development Plan/ Supervisor
comments. In this box supervisor gives comments about appraisee strengths and
further appraisee’s development needs (need to improve academic & professional
qualification).
Second box is called overall assessment box. In this box appraiser gives the overall
performance grade to appraisee according to B2 form and the grade is given in form of
A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then
overall assessment is reviewed by reviewer and reviewer gives its comments too, but it

is not necessary. After it final acceptance of appraisee is also taken along with
signatures.
Following is some brief detail about appraisal areas
A-PRODUCTIVITY:
Productivity is actually about the performance of employee in the clerical field. It
indicates that how much effectively and efficiently an employee performs its duty and
how much employee is committed with the achievement of organizational goals and
objective. Following factors of Productivity are defined briefly;
JOB KNOWLEDGE: It is first and basic factor of productivity. This factor shows that
how much employee has awareness about his/her job.
TD CLEARING/BILL LEDGER POSTING: This productive factor indicates the ability of
employee about ledger posting of HBL. His shows how much an employee is expert and
clear in indicating or posting of ledger regularly.
TIMELY LODGEMENT OF CLEARING: This is the job in which the employee of HBL
is to present the cheques of other banks, which are given by customers for depositing in
their accounts in the State Bank before 10 o’clock. In this assessment it is determined
whether employee is punctual in presenting cheques to State Bank in the specific time.
FOLLOW RETURN UNPAID CHEQUES: In this job the employee is to return the
unpaid cheques to the bank before 3 pm which are rejected by State Bank due to some
incompleteness like absence of signatures, inefficient money in the account of
customers or other reasons cause refusal of cheques by State Bank. In performance
appraisal it is assessed that whether employee is fulfilling his job well or not and on the
basis of his performance he is given points.
NOTING OF STOP PAYMENT INSTRUCTION: In this job employee notes the stop
payment instruction due to lose of cheques by customer. If customer loses his/her
cheques then he/she has to tell about lost cheques to the branch of HBL and in
response the employee is to note down the stop payment and also feed this information
in the computer for database record in order to restrict misuse of the lost cheques.
VOLUME OF WORK HANDLED: In this assessment it is noted that how much volume
of task or work is being handled by employee and on the basis of volume of work
handled the employee gets points of achievement against the block in appraisal form.
ACCURACY & ATTENTION TO DETAIL: In this job it is indicated that how much an
employee is attentive and accurate in noting down the job whether he/she is performing
at desired level or not.

WILLINGNESS AND ABILITY TO WORK WITH OTHER PEOPLE/UNIT: In this section
it is noted that how much the employee is willing and how much he/she has the ability
and quality to perform well in the group of people or unit and it is determined is he/she is
able to perform in the group or not if a group task or assignment is given.
ABILITY TO WRITE EFFECTIVELY: In this assessment it is noted that how much
employee has effective skills of writing which matters in reporting or hand written
application.
ADOPTABILITY OF NEW ASSIGNMENTS: In this job it is determined how much
employee is able adopt new assignments related to his/her job. Does he/she have
ability to adopt new challenges in his/her job?
DEPOSIT MOBILIZATION/SAVING/CURRENT CPDC ETC: In this factor it is assessed
that how much the employee is responsible for depositing certificates of saving, current
and CPDC (Crore Pati Deposit Certificate) purchased by customers.
NUMBER OF FRESH ACCOUNT ARRANGED: In this job the employee is to arrange
new accounts by feed the data in the database system and issuing cheques books. In
this assessment it is appraised that how much the employee has arranged newly
opened accounts and on the basis of number the employee is granted with grade on the
appraisal sheet.
REDUCTION IN CUSTOMER COMPLAINT: This job is related with customer service
member. In appraisal it is defined how many complaints of customers are reduced by
employee.
HAJ APPLICATION TARGET: This job is related with Islamic Banking section of HBL.
Each employee is given with the target of submission Haj application. On the basis of
submitted target Haj application employee gets point ratings on appraisal form.
TIMELY BALANCING OF BRANCH LEDGER/BOOKS: In this job employee has to
balance the branch ledger on the daily basis. On the basis of balancing of ledger in time
the employee is given grade points on appraisal sheet.
ACCURACY IN COUNTING/CASH HANDLING & COUNTING SPEED: This
determines that how much employee is able to count or handle the cash efficiently and
how fast cash is counted by the employee.
DISPATCH OF REQUISITE STATEMENTS: In the bank the employee of related job is
to dispatch the balanced Ledger/Books, financial statements and number of accounts
before authority of branch on monthly basis. While appraising employee it is defined
that how much he/she is efficient and punctual in his/her job.
MAINTENANCE OF GUNS IN ORDER: In this assessment it is determined that how
much the employee is active in performing the order of his/her head. The obedience of
the employee to his/her head in the bank task is counted in this assessment.

ZERO THEFT: In assessment the employee is assessed according to handling of
his/her honesty in his/her job. It is counted that how much he/she has been committed
with theft in performing job.
DELIVERY OF LETTER/DAK IN TIME: This job is about the deliverer of letter/Dak to
the one bank to other banks, one branch to other branches of HBL and dispatch of
cheques to State Bank. The employee is graded with points according to punctuality in
delivery in the appraisal form.
QUALITY OF WORK: In this assessment the employee is given with grade points
according to quality of his/her performance in his/her specific job.
SPEED OF WORK: In the assessment of job this factor shows that how much fast and
efficient an employee is in performing his/her task related to his/her field.
FILING AND RECORD KEEPING: In this job the employee is to file and record the data
of customer for database. According to effectiveness of record keep employee gets
points in appraisal form.
TYPING/DATA ENTRY SPEED: This is about computerized record keeping. In this
factor it is assessed that how much the employee has speed in typing data.
TYPING/DATA ENTRY ACCURACY: In record keeping it is noted that how much
accurate the employee is in typing data for database.
B-INDIVIDUAL ATTRIBUTES:
This area of factor is about the employee’s attribute or properties in performing job.
Followings are factors of individual attributes;
PROFESSIONAL/TECHNICAL KNOWLEDGE & COMPETENCY: In this attribute it is
checked that how much the employee has professional skills about his/her job and how
much he/she is competent has technical knowledge about his/her job in the bank.
INITIATIVE (EAGERNESS TO LEARN, ENLARGE KNOWLEDGE): In this factor it is
noted that how much employee is eager to learn new thing about job and how much
he/she is interested in enlarging knowledge of job. Initiative factor is very important in
job field cause initiate new task in the field is good attribute of professional employee.
REACTION TO RESPONSIBILITY: In this attribute it is assessed that how the
employee reacts when some responsibility is given to him, it is noted whether he/she
reacts warmly and professionally or considers new responsibility as a burden.
SENSE OF RESPONSIBILITY: in this attribute it is assessed that how the employee
takes the responsibility whether takes it professionally and serious or carelessly.

ORAL COMMUNICATION ABILITY: In this factor it is assessed that how much
employee has ability to communicate orally with the customers and head. Speaking
skills are counted in this appraisal.
WRITTEN COMMUNICATION ABILITY: In this attribute the ability and writing skills of
employee is assessed.
SORTING NOTES: In this factor the ability of sorting and handling of currency notes are
judged. It is assessed that whether employee is sorting notes according to sequence.
CASH EXCESS/SHORTAGE SITUATION: Cash handling is noted in this factor. It is a
negative appraisal. Some time employee gives or receives more or less amount by
customers, if he/she gives more than real amount then he/she has to compensate this
money from his/her own pocket.
PERFORMING UNDER PRESSURE: In this factor the performance of employee is
assessed under pressure situation. It is checked that how much he/she is capable and
confident to perform under pressure circumstances.
ABILITY TO WORK WITHOUT SUPERVISION: In this factor it is checked that how
much the employee is able to perform his/her duty efficiently without supervision and it
is also assessed that whether supervisor has to keep eye on his/her to get the work
one.
WILLING TO WORK AFTER OFFICE HOURS: In this factor it is noted that how much
employee is dedicated towards his/her job even after office hours.
C-TECHNOLOGY:
This is the area of appraisal in which the capability of using of technology of employee
is assessed. Followings are major factors of area of technology
KNOWLEDGE OF COMPUTER: The knowledge of using of computer is counted in this
factor.
KNOWLEDGE OF E-MAIL & INTERNET: The knowledge of internet and
sending/receiving is assessed in this factor of technology area.
D-CUSTOMER SERVICE:
This is the area of appraisal in which the motivational and dedicated level of employee
toward customer service is assessed. Followings are factors of this area;
COURTESY TO CUSTOMERS: in this factor of customer service area it is assessed
that how much employee is courteous towards customers, whether he/she is deals with
customers politely or harshly.
RAPPORT WITH CUSTOMER: In this factor it is assessed that whether employee
cashes the cheques of customer within time or he/she makes customers wait due to
his/her personal gossips etc.

CREATIVE RESPONSE TO CUSTOMER’S NEEDS: In this factor it is judged that how
creatively and professionally the employee responses to customer’s needs regarding
banking system.
Business sense: This factor determines the sense of employee regarding business that
whether he/she knows about economic terms and their uses.
E- PERSONAL:
This is the area in which personality of employee is evaluated. Factors of this area are
as following;
HEALTH & ENERGY: In this factor of personal area physical and mental health of
employee is evaluated and also the use energy of performing in job.
APPEARANCE: In this factor the appearance of employee is counted. The dress code
and manner of dressing is assessed.
INTEGRITY AND LOYALTY: In this factor the loyalty and integrity of employee is
assessed. The dedication and commitment of employee while performing duty is
counted. Honesty and faithfulness with job and company is also assessed.
GROOMING: In this factor the development and grooming of employee’s personality is
counted.
MANNER OR SPEECH: In this factor of personality the manner of speech or manner of
talking to others are assessed. Manner of speech should be polite and understandable.
ATTITUDE: In this factor the employee gets point on the basis of positive and
professional attitude in his/her personal life.
INTELLIGENCE: In this factor of personality the intelligence of employee is evaluated.
ATTENDANCE RECORD/LEAVE RECORD/PUNCTUALITY: The employee is given
grade points on the basis of regular and timely attendance according to time table.
Its importance of Performance Appraisal 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.

PERFORMANCE APPRAISAL AT BANK ALFALAH
INTRODUCTION
Bank Alfalah’s performance appraisal system is improved and upgraded from time to
time in line with the Bank’s requirements, as well as with industry practices. HRD keeps
all units of the Bank informed of the PA system and procedure currently in use. Units
are also notified deadlines for goal setting, periodic monitoring and final appraisals.
OBJECTIVES OF PERFORMANCE APPRAISAL:
• Improving the performance of the Bank and its staff members

• Laying a solid foundation for relationships between staff and management
• Clarifying performance targets for all
• Using the process for career planning and professional development of staff
• Review of salary, assignment and career path
• Award of bonus(es)
• Provide a basis for Promotion to higher salary ranges and functional
responsibilities.
ROLE OF IMMEDIATE SUPERVISOR AND BRANCH MANAGER / UNIT HEAD

Detailed guidelines are issued by HRD by the end of each year regarding Performance
Appraisal of all employees for the year.
SALARY INCREMENTS/ADJUSTMENTS & PERFORMANCE BONUS (ES)
• Review of salary and allowances, which is based on previous year’s

performance, is carried out once a year during the first quarter of every year. The
Bank’s performance appraisal (PA) system is primarily based on goal setting in
the beginning of a year, monitoring by supervising officers on bi-annual basis and
final evaluation, using standardized performance appraisal forms at the end of
the year. Some weight age is also given to evaluation of enabling personal skills
and personality traits, as listed in the Appraisal Form.
• Appraisal exercise is done only for those employees who have completed six
months’ service with the Bank on 31st December and whose appraisal forms
have been received from their respective offices within the specified time limit.
• The extent of salary increases will depend on the system and formulae adopted
by the Bank’s Management for the year in question.
• With reference to salary levels prevalent in the Bank and in the marketplace,
salaries of certain key staff members may be adjusted during the appraisal
exercise. This will be done in consultation with concerned Branch Manager/Area
Manager/Executive-in-Charges

• To reward high performance during the period under review, performance
bonuses may be awarded to deserving officers based on their performance
rating.
PROMOTION TO HIGHER GRADES
PROMOTION TO HIGHER GRADES DEPENDS UPON THE FOLLOWING THREE

FACTORS :
• Bank’s overall policy of promoting certain number of people in specified salary

ranges to maintain a balance between number of employees in various ranges.
• Requirements emanating from operating units for staff of higher seniority to suit
their operational needs, based on their current assignment.
PROMOTION PROCEDURE
The promotion procedure revolves around the following two activities, which are to be
completed and recorded as described below.
PROMOTION INTERVIEW
Interviews for promotions to specified positions in the branches is conducted by one or
more of the following officers of the Bank as elaborated below:
Branch Manager (BM)/Chief Manager (CM), Area Manager (AM), Executive-in-

Charge (EI).
For promotion to 1st Interview 2nd Interview 3rd Interview

Ranges I, II & III BM / CM AM -
Ranges IV, V & BM / CM AM EI – HRD
VI
Ranges VII & AM CEO & / or EI – St. Planning
VIII
Promotion interviews for Head Office staff will be conducted as follows
For promotion to 1st Interview 2nd Interview 3rd Interview

Ranges I, II & III Head of Dept. Concerned EI ---
Ranges IV, V & Head of Dept. Concerned EI EI – HRD
VI
Ranges VII & CEO --- ---
VIII
Range IX CEO --- ---

OUR SUGGESTIONS FOR BETTERMENT OF HBL AND BANK
ALFALAH:
RECOMMENDATIONS FOR HBL

1. It has reduced its staff strength resulting in reduction its administrative cost.
The resources should be directed for upgrading branches.
2. 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.
3. HBL should use Human Resource Inventory System.
4. HBL has begun campus recruiting which provides youngsters to come ahead but
their campus recruiting process is so slow. 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.
5. The process of promotion at HBL is slow so they should maximize the promotion
process which would be source of motivation for their employees.

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 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.
BANK ALFALAH
PERFECTION IS ONLY THE CLAIM OF ALLAH ALMIGHTY. NO OTHER BEING LIVING OR DEAD CAN SAY
THIS FOR ITSELF. SIMILARLY, BANK ALFALAH ALSO HAS SOME SHORTCOMINGS THAT NEED TO BE
MENTIONED :
 Most of the employees are overloaded with work
 Disproportionate presence of Old Staff in the upper management Hierarchy
 Skill Set Of Employees Is Not Up to The mark as there is no job rotation
 Less efficient computer and I.T system which creates problem for employees
 There is uneven distribution of work and promotions are not very timely
 It is slow in the introduction of new services
RECOMMENDATIONS
• Employees shouldn’t be over loaded with work. They must be given work
accordingly and sequence wise. They must be given work according to their
schedule and with the point of view that they can handle the task easily.
• corresponding presence of Old Staff should be there in the upper management

Hierarchy
• job rotation must e done to enhance the skill set of employee and so that they
can reach up to the mark
• Technology awareness should be provided in the bank. Staff should e provide

with efficient computer and I.T system in order to avoid problem for employees
• equal distribution of work and promotions are must be very timely as it will create
awareness and stop turnover

• It must be fast in the introduction of new services
COMPENSATION AND INCENTIVES
The salaries, rewards, bonuses, and incentives on the basis of job and performances
are compensations.
COMPENSATION AT HBL:
Normally people join HBL because of its
brand and not the compensation. After
privatization the HBL has changed a lot
in terms of compensation. It has been
seen in all the Aga Khan’s Organization
that they provide the excellent culture to
their employees but their salary and
compensation packages are not so attractive. HBL has also one strategy that has been
seen in many years after privatization that they offer incentive to their left employees
when it fired a massive number of employees without any sensible reason. They frame
reasons to answer the corporate world but they are not sensible. To overcome the
anger of the remaining employees they offer cash incentives to the remaining
employees so that they can forget the past and work for the better future. We also want
to mention one more inhumane practice of HBL that they are constantly firing the old
employees and hiring the new ones. They prefer new employees now but their
operation cannot run by the new employees because the old employees have more
skills.
HBL’s focus is on attracting, developing and retaining the best in the business by
offering market driven compensation and benefits packages. HBL’s compensation and
benefits strategy combines the need to maintain a high performance culture along with
market competitiveness. Annual benchmarking exercises are conducted to stay abreast
with industry standards. According to performance each employ gets benefits and

compensation. Time does not matter only performance matters at HBL. Employees
are paid in two forms
• Direct payments
• Indirect payments
Direct financial payments: Pay in the form of wages,
salaries, incentives, commissions, and bonuses (no Eid
bonus).
Indirect financial payments: This mode of payment is

not related to cash payments like medical, insurance,
residence, car, car fuel etc.
DIRECT and INDIRECT FINANCAL PAYMENTS
• The date of disbursement of salary was same in both the banks i.e. 26 th/ 27th of
each month.
• The advance against salary is provided in case of emergency and if the staff
member is proceeding on leave and next payday falls during vacation period.
This practice is followed at Alfalah but not at HBL.
• The AVP’s at HBL can take one daily newspaper. They have to show the bill to
the bank to have the amount. This is not in their salary package at Alfalah this is
included in their salary package. The SVP’s and above at HBL can take any 2
daily newspapers.
• Group Heads and General Managers are eligible to have one corporate club
membership at their place of posting that includes joining fee of one approved
club plus fixed monthly fees for self and family. This is followed at both the
banks. HBL gave Rs. 5 lac for membership.
• Both the bank provides job related fuel entitlement to their employees. This
varies from position to position not from the distance to the office and is included
in the salary package. This fluctuates according to the fuel price in the market.
• At Alfalah Hospitalization Insurance Coverage for Employees (below 60) and

their dependent Parents, Spouse and Children. Employees who are above 60
are provided hospitalization insurance to themselves only. HBL does not provide
any type of insurance to the parents of the employee.

At Alfalah regular employees, their parents, spouses and children suffering from
serious illness (see list below) are entitled for reimbursements of cost of
medicines, lab tests and consultation fee subject to the following.
1. If the treatment is likely to continue for a minimum period of six months or more.
2. If the treatment expenses for one month are equivalent to 10% or more of the
monthly Basic Salary of the concerned employee.
These claims will be lodged to HRD on Follow-up Expenses Claim Form as per
along with medical bills, doctor’s prescriptions etc.
List of Diseases Eligible for Follow-up Treatment
• Cardiovascular disorders
• Strokes
• Cancer
• Multiple Scleroses
• Hepatitis B & C
• Major burns
Any other disease, as approved by Management, may be added to the list)
Dependents (Hospitalization and Follow-up Treatment)
• In case of working spouse (if not covered under insurance from his/her
employer), will be eligible for coverage from the Bank.
• Working parents are not considered “dependents” and therefore are not entitled
for coverage. They will be eligible only if they are fully dependent and live with
the officer.
• Unmarried / Widowed / Divorced daughters, living with parents will be allowed
insurance facility without age limit.
• Male children above 25 years of age are not covered under bank’s hospitalization
policy.
• Male children below 25 years but married or engaged in gainful employment are
also not covered under this policy.
At HBL
HBL provides no follow up treatment to the employee’s parents no matter they are
totally dependent on the employee or not and also no matter on the nature of
disease. It provides the hospitalization and follow up treatment to the employee’s
spouse and children only in case they are hospitalized. If they are not no cost of
medicines, lab tests and consultation fee is provide to them. The HBL however
provide the cost of insulin and other major diseases which they have to take daily to

the employee. The medical allowance in the salary of the HBL employees is also not
satisfactory.
• 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.
• All permanent confirmed employees are eligible for membership of Bank Alfalah
Ltd. Employee Provident Fund Scheme. An employee contributed an amount
equivalent to one month’s basic salary in a year (8.33% of monthly basic salary)
towards the Provident Fund Scheme and an equivalent amount iscontributed by
the Bank. PF deduction will continue to be made from monthly salary even if an
employee has resigned and is working during the notice period. Membership of
PF Scheme will be automatically cancelled on the last working day of the notice
period.
HBL had this scheme before privatization but after few years of privitzation HBL
changed its policy. The PF is settled on the date. Means the employees would
get the PF after their retirement on the basis of the gross salary of a particular
date.
• All those who have not availed furniture facility at BAL can draw furniture
allowance w.e.f. 1st January, 2007 as per following details.
Range Allowance
IV – VI 2,750
VII 4,500
VIII 6,500
IX 9,500
HBL only provide the furniture allowance to the employees when they get
promotion.
• 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.
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.
Rewards System:
Pay For Performance:
Annual increase in salary of employee is based on

slogan of “Pay for Performance”. More jobs
perform the organization pay. Cash awards are
also given to employees.
• Bank Alfalah encourages its officers and staff to enhance their professional
competence to meet the growing challenges of the financial industry. Part of the
cost of registration/admission/exam fees is reimbursed to those employees who
undertake and successfully complete higher degrees and professional courses
related to banking and finance (from recognized institutions) to improve their
competence and qualifications. Where as HBL has more improved policy here. It
provides full cost of registration/admission/exam/ semester fee to their
employees. If they fail in any course the bank would not provide the fees. Many
employees have completed their law and business administration studies from
recognized institutions (law from SM Law College, MBA from SZABIST).
• Both the banks provide almost same life Insurance policies for employees.
• Marriage grant to employee’s two daughters is given.
• There are total of 100 monthly scholarships available for employees’ children.
The amount varies from the level of the studies.
• At HBL Plaza the canteen token is of Rs. 30 rest of the money is added by the
bank. The quality and quantity of food is excellent.

RECOMMENDATIONS FOR HBL REALATED TO
COMPENSATION AND INCENTIVE PLANS
• HBL should provide the medical coverage to the employee’s parents.
• HBL should also review its medical coverage policy. It provides the medical
coverage to its employees when they are hospitalizing only. HBL also do not
provide the free medical test coverage even if the test is done by the AKUH.
• The medical coverage they are giving with the monthly salary is very less. They
should revise it because the inflation is going up.
• The PF scheme need to revise as it is de motivating the employees. It should be

like other banks in the market. The old employees joined the HBL because it was
a government institute and provides the PF to the retire employees. Due to this
new policy they are still in anger because according to them the inflation is going
up how they can spend their lives with little money in hand after their retirement
as it has been settled by the bank.
• The fuel entitlement should be provided on the position as well as the employee’s
residence distance from the work place.
• The Eid bonuses should be provided by both the banks. Giving the amount in
monthly salary is not a good practice. If the employees get a lump some money
near Eid it would be easier for the employees to celebrate the Eid with full zeal.

APPENDIX

FORM A
HABIB BANK LIMITED

PERFORMANCE APPRAISAL FOR THE PERIOD FROM to
FOR EXECUTIVES & OFFICERS
(To be filled in by the Appraisee / Appraiser)
Name Branch ____________________ Date of

Birth Region _____________________
Personnel # Department ___
Designation ___________ Division ________________
Job Title Group
Date of Joining Last Promotion
Academic Qualification
Professional Qualification
Jobs held in 2005 Job: Period From Jan. to December
Job _ Period From
Reports to
Appraiser’s Job Title

APPRAISEE’S KEY RESPONSIBILITIES AT THE BEGINNING OF THE
YEAR

FORM B
HABIB BANK LIMITED
PERFORMANCE APPRAISAL FOR THE PERIOD FROM JAN 01. 2005 TO DEC. 31, 2005
FOR EXECUTIVES & OFFICERS.
APPRAISAL BY OBJECTIVE (ABO)
Group: Region/Division:
Name of Appraisee (Employee): Personnel #:
Designation: Place of Posting:
SMART OBJECTIVES / TARGETS ACTUAL RESULTS/COMMENTS
S # Objective Factors Assigned Market/ Mid Year Final Comments (if RATING
Targets Results Any)
(Key Performance Indicators) Industry Results **
Growth*
1 To draw an annual comprehensive plan for

audit of all overseas branches for approval of
the Group Management/audit Committee of
Board of Directors (in coordination with Head
of Audit)
2 Selection of audit teams for implementation of

the approved plan (in consultation with
divisional Head Audit/Group Head)
3 To implement the approved Audit Plan as per

schedule by supervising suitable travelling
arrangements. To assist the teams in planning
pre-audit activities.
4 To ensure visible improvement in contents and

presentation of audit reports.
5 Supervise implementation of corrective action

tracking system for resolution of issues.

6 To maintain of record of Regulatory rules,
Regulatory reports issued by Central banks
and external auditors reports at overseas
locations procured through IBG.
*Mention Market / Industry Growth Rates in your area of operations (if applicable) Total Points
ABO
Average
ABO Average = Total Points / No. of Objectives. **Mention Ratings in whole

numbers
_________________________________
________________________________
Appraisee’s Signature Appraiser’s

Signature
(Name: ) (Name: )
Dated: Dated
_______________________
RATING CHART
Category Rating Description
Exceeding All Targets / objectives Always exceeds targets/objectives/expectations/parameters of the

assigned task (at least by 20% and above)
Exceeding Most Targets / Objectives Exceeds targets/objectives/expectations/parameters of most of the

assigned task (at least by 15% and above)
Exceeding Some Targets/objectives Exceeds targets/objectives/expectations/ parameters of some of the

assigned task (at least by 10% and above.
Meeting All Objectives Targets/Objectives. Meets all the targets/objectives/expectations/parameters of the

assigned task (by 100%)
Missing Some Objectives Targets/objectives Meeting almost all the targets/objectives/expectations/parameters of

the assigned task (variation upto 10%)
Missing Many Objectives Targets / Objectives Does not meet all the targets/objectives/expectations/parameters of
the assigned task (variations below – 10%)
Please Note: In case of individuals achieving scores higher than 3 please provide specific reasons (attach if required)

FORM C
HABIB BANK LIMITED
PERFORMANCE APPRAISAL FOR THE PERIOD FROM TO
FOR EXECUTIVES & OFFICERS

APPRAISAL BY ABILITY (ABA)
S# JOB COMPETENCIES COMMENTS (If any) SUB RATING RATING*
1 JOB KNOWLEDGE
Specific to Profession:
*Understanding of job responsibilities.
*Methods, Techniques & skills (technical concepts)
Specific to Company:
*Knowledge related to field (products & services)
*Laws, Regulations, Policies & Procedures applicable.
Acquisition of Knowledge:
*Enhance present knowledge base related to the market
*Technical & other skills
2 COMMUNICATION
Written:
*Organizes thoughts & ideas clearly & concisely
*Use written words & phrases in accurate manner

appropriate for the users / readers
Oral:
*Communicates ideas, thoughts & information clearly
& concisely
*Demonstrates command over language
3 INTERPERSONAL EFFECTIVENESS
*Respects opinions, abilities & contributions of others
*Tactful, cooperative & open minded
*Exhibits & practices team work.

4 INITIATIVE
*Self motivated
*Resourceful & independent
*Identify new techniques/methods for accomplishing goals
*Reducing cost & improving quality/efficiency of the present
system.
5 FLEXIBILITY
*Adaptable, open to new ideas & implements/accepts change
6 LEADERSHIP
*Demonstrate leadership
*Strategic thinking
*Decision making / problem solving
*Integrity & ethics
*Rating = Total scores (in whole numbers)obtained in a set of applicable competencies Total Points
No. of applicable competencies. ABA Average
ABA Average = Total Points / No. of Competencies.
______ ____________________ ______________________________
Appraisee’s Signature Appraiser’s Signature
RATING CHART
Category Rating Description
Exceeding All Competencies 5 Performance exceeds the required standards at all times – little room for
improvements. Highest level of competencies demonstrated.
Exceeding Most Competencies 4 Performance exceeds the required standards most of the time in
accomplishing target/objectives/parameters of the assigned task.
Competencies can be further developed as the nature of the job evolves.
Exceeding Some Competencies 3 Sometimes exceeds the performance expectations. Also has the potential to
further develop these competencies.
Meeting All Competencies 2 Performance is consistent & meets requirements of the assigned task.
Missing Some Competencies 1 Performance is inconsistent & behaviour sometimes doesn’t meet the basic
requirements. Some of the competencies required for the job position are in
the process of being learnt.

FORM D
HABIB BANK LIMITED
PERFORMANCE APPRAISAL FOR THE PERIOD FROM

TO
DEVELOPMENT PLANS
Group: Region/Division:
Name of Appraisee (Employee): Personnel # : _____________
Designation: Place of Posting:
Training attended during the year
(1) Conducting Powerful Interviews.
(2) Best HR Practices.
(3) Introduction to MISYS.
Appraisee’s Strength (Mention specific skills)
Developmental Needs / Plans (Identify specific training needs)

OVERALL POINTS ACHIEVED
CALCULATIONS:
Weighted Performance Mean (WPM) = 75% * ABO Average + 25% * ABA Average
__________________ + __________________
Overall Performance Points achieved __________________________________
Note: No rounding of numbers, mention upto 2 decimal places.
Please Note: In case of individuals achieving overall rating higher than 3 please provide specific reasons
(attach if required)
_____________________________________ __________________________
Appraiser’s Signature Appraisee’s Signature
Name:____________________ Name: ____________________
Designation: SVP Designation: SVP

Name:_____________________________
Designation:______________________
Reviewer’s Signature

HBL and STANDARD CHARTERED

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[2009

SEC.: “D”HUM HUMAN RESOURCE

Hamza Ismail (8105)

Mehwish Zia (7731)

Sarosh Anjum (8181)

Sonia Kazi (8055)

DECEMBER 15, 2009

INSTITUTE OF BUSINESS MANAGEMENT

HAMZA ISMAIL (8105)

HUMAN RESOURCE MANAGEMENT Page 2

“Proclaim in the name of the Lord and Cherisher, who created

This report is the result of work completed at the Institute

We would like to thank Ma`am Amna Yousuf as our

We hope that this knowledge will benefit us in the years

HUMAN RESOURCE MANAGEMENT Page 3

December 15, 2009

HUMAN RESOURCE MANAGEMENT Page 5

Institute of Business Management

December 10, 2010

It is an honor for us to prepare the report on “The comparison of HBL’s HR

It was a pleasure creating such a report, on a topic so informative and practical.

• Sarosh Anjum (8181)

• Mehwish Zia (7731)

• Sonia Kazi (8055)

HUMAN RESOURCE MANAGEMENT Page 6

• Nizam uddin Shah (

In a nutshell, the report was a true learning experience for us.

HUMAN RESOURCE MANAGEMENT Page 7

HUMAN RESOURCE MANAGEMENT Page 9

INTRODUCTION OF BANK ALFALAH

HUMAN RESOURCE MANAGEMENT Page 10

To continuously offer courteous professional and advanced banking solution banks

Technological developments are opening up new vistas of solutions of distributing

INTRODUCTION OF HABIB BANK LIMITED

HUMAN RESOURCE MANAGEMENT Page 11

“Enabling people to advance with confidence and success”

HUMAN RESOURCE MANAGEMENT Page 12

HUMAN RESOURCE MANAGEMENT Page 13

SUCCESSION PLANNING AT HBL:

It is actually management developing program. Management development is attempt to

HBL uses following programs for training and development

HUMAN RESOURCE MANAGEMENT Page 14

HBL’s Management Associate Program is a training and rotational program focused on

HUMAN RESOURCE MANAGEMENT Page 15

The primary benefit of succession planning is that a sequence

• Bank Alfalah limited would grow its own future managers

KEY ELEMENTS OF THE SUCCESSION PLANNING POLICY:

• CEO and top management support

HUMAN RESOURCE MANAGEMENT Page 16

CRITICAL POSITIONS TO BE FOCUSED:

TRAINING AND DEVELOPMENT NEEDS:

HUMAN RESOURCE MANAGEMENT Page 17

2. The HR Management Committee will review progress of succession planning

3. A Talent Pool is to be established consisting of potential candidates for managerial

4. Training needs are to be identified, training programs developed (or identified

HUMAN RESOURCE MANAGEMENT Page 18

PLANNING OF TRAINING NEEDS:

BAL -- BANK OF ALFALAH:

HUMAN RESOURCE MANAGEMENT Page 19

• BAL is following a formal planning system by creating committed and Training

NEW JOINER`S TRAINING

• Apprenticeship Training: It is actually combination of OJT and lectures

HUMAN RESOURCE MANAGEMENT Page 20