INTRODUCTION ABOUT HABIB BANK

AG ZURICH
HABIB Bank AG Zurich, a Swiss incorporated bank was
founded in 1967 by the renowned HABIB Bankin !a"i#y of
$akistan, the sa"e fa"i#y who had founded and owned HABIB
Bank %&'erseas( )td* and HABIB Bank )i"ited, the #arest
bank of $akistan ti## it+s nationa#i,ation in 197-*
At the ti"e of it+s incorporation,+ HABIB Bank AG Zurich had a
"odest capita# of Swiss !rancs . "i##ion, with on#y one branch
in Zurich, Swit,er#and* After nationa#i,ation of a## the banks in
$akistan, the fa"i#y decided to row and e/pand the operation
of HABIB Bank AG Zurich*
0ithin a period of on#y .6 years of its e/pansion prora", the
fa"i#y "anaed to row the Bank to such an e/tent, that
today it is ranked a"onst the top 1111 banks of the wor#d*
2his kind of e/ceptiona# achie'e"ent is difficu#t for any
bankin institution to attain, in such a short period of ti"e*
Indeed, it is a "i#estone for a fa"i#y owned and "anaed
pri'ate bankin institution* Such proress is difficu#t to achie'e
e'en after decades of e/istence*
32he Banker4 "aa,ine of 5n#and, in its 6u#y .111 issue, a'e
the fo##owin rankins to
HABIB Bank AG Zurich7 It appears as 86.nd #arest bank in
the 0or#d+s o'era## rankin, a"on hundreds of thousand of
banks* 2he bank is p#aced as 9-.nd in soundness and is
ranked as -.1th in perfor"ance* 2he rankin by si,e and
assets is 8:-th and by return on assets, the bank stands at
98-th* 0hereas in rea# profit rowth, HABIB Bank AG Zurich is
ranked at 111th a"on a## the banks of the wor#d, a 'ery
creditab#e perfor"ance indeed*
;2he Banker; has p#aced HABIB Bank AG Zurich at .8111
#arest banks a"on the 1,198 banks in Swit,er#and* In
soundness, the bank en<oys a rankin of 11 and in
perfor"ance 9* In rea# profit rowth, the bank is ranked at
nu"ber - in Swit,er#and, on#y after three "a<or banks of
Swit,er#and, i*e* =nion Bank of Swit,er#and, >redit Suisse
Group and 5!G Bank 5uropean !inancia# Group* 2he capita#
ade?uacy of the bank can be <uded by the fact that aainst a
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BIS@ capita# re?uire"ent of 8A, the bank "aintains +A capita#
ade?uacy ratio of 19A+*
2he bank has the #arest o'erBseas network of branches as far
as Swiss banks are concerned* Additiona##y, the bank en<oys a
rankin of 96.nd #arest bank a"onst the banks in 5urope*
2he abo'e achie'e"ent for HABIB Bank AG Zurich is not on#y
a source of pride for the fa"i#y who owns and "anaes this
bank, but $akistan can fee# proud that it has produced
bankers of the hihest internationa# standard* HABIB Bank AG
Zurich has branches a## o'er the wor#d i*e* Zurich, Swit,er#and,
Coorate, 5ast 5nd 0est 5nd in )ondon, Canchester, G#asow,
)eicester, Southa## and Bir"inha" in 5n#and* In Denya,
Eairobi , Co"bassa, 0est#and, Industria# Area*
In =nited Arab 5"irates, the bank has branches in Feira, $ar
Fubai, >orporate Branch, Sikkat AI Dhai#, 6ebe# A#i, Sheikh
Ha"dan and AI !a#ah Street, Abu Fhabi and a branch in
Shar<ah* In Sri#anka, the bank has branches in Cain Street,
!ort, 0e##awatta, >o#petty, and a !orein >urrency Bankin
=nit in >o#o"bo*
HABIB Bank AG Zurich a#so has fu##y owned subsidiaries in Is#e
of Can, South Africa and >anada and representati'e offices in
Hon Don and >ario* 2he Bank has si/ branches in $akistan
inc#udin three in Darachi, and one each at )ahore, !aisa#abad
and Gawa#pindi*
2he first branch was opened in Darachi in 6u#y 1989* &'er a
period of ten years, the bank has contributed o'er one and
ha#f bi##ion rupees to the country+s e/che?uer, besides
pro'idin e"p#oy"ent to 971 peop#e in $akistan*
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MANAGEMENT
$rocess or techni?ue of "anain a business* Syste"s 'ary
accordin to the type of orani,ation, co"pany, and
ob<ecti'es* Since the ear#y 1971s, there has been a rowin
de"and for #earned "anae"ent ski##s, such as those tauht
in the Har'ard Business Schoo#, =SA, and at the )ondon
Business Schoo#* By contrast, in 6apan, such ski##s are #earned
on the <obH e"p#oyees tend to spend their careers with the
sa"e co"pany and towards the end wi## ac?uire "anaeria#
status* In 5urope, there has been a trend toward "anae"ent
by consensus, rather than by the indi'idua#*
HUMAN RESOURCES MANAGEMENT
A co"prehensi'e interated syste" for effecti'e#y "anain
the workforce in the effort to achie'e orani,ationa# oa#s*
2he HGC syste" inc#udes hirin, firin and payro##s* 2he
hu"an resources "anae"ent process #eads to producti'ity
by ba#ancin personne# a'ai#abi#ity and re?uire"ents in
accordance with the orani,ations resources and strateic
p#ansH hu"an resource "anaers at HABIB Bank AG Zurich
contribute to orani,ationa# study p#ans as we## as act upon
the"*
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ORGANIZATIONAL CHART OF HABIB
BANK AG ZURICH
(Summarized)
1
After the #ower #e'e# "anaers the #ower #e'e# staff co"es
which inc#udes the peons and other &fficer Grade personne#@s*
0here as I*$ and A*I*$@S are further c#assified into their
depart"ents i*e* !IEAE>5, CAG52IEG, HG etc* and so a#so the
)&05G )5I5) CAEAG5GS*
I*$ J Iice $resident
A*I*$ J Assistant Iice $resident
5*I*$ J 5/ecuti'e Iice $resident
S*5*I*$ J Senior 5/ecuti'e Iice $resident
1
The chart is summarized as because the original chart is too big
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MEETING THE ORGANIZATIONAL
GOALS
2he Hu"an resources p#ays a 'ita# ro#e in any orani,ations
abi#ity to "eet its oa#s* In HABIB BAED AG Z=GI>H, since the
Bank is a forein bank, they ha'e rea##y hard work to perfor"
the personne# depart"ent sits o'er niht in order to achie'e
the oa#s*
As AGZ dea#s with the fo##owin products7
I. DEPOSIT PRODUCTS
2o open a >=GG5E2 A>>&=E2 in do##ars or any other
currency of you@re choices, with che?ue writin faci#ity*
$erhaps if you want to "ake a shortBter" deposit, to
ensure security of cash with interest for a period ranin
fro" one to se'en days, one "onth or one year* In this
case their SAIIEGS A>>&=E2S, 2IC5 F5$&SI2
A>>&=E2S and >A)) F5$&SI2 A>>&=E2S wou#d be <ust
what you need*
2hese are the types of deposit accounts7
>urrent Account
Sa'ins Account
2i"e Feposit Account
>a## Feposit Account
II. LENDING PRODUCTS
&'erdraft
2rust Geceipt
>o""ercia# )oan
>he?ue Fiscountin
5/port Bi##s Fiscountin
$ackin >redit
)etters &f >redit
Auto )oan
Sa#ary )oan
Gent )oan
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III. INVESTMENT BANKING
2hrouh this ser'ice you can trade in shares or
debentures in any currency, recei'e reu#ar updates on
the internationa# "arket, and et access to the #atest
infor"ation on share profi#es*
a. CORRESPONDENT BANKING
Bankin transactions to be carried out on a reu#ar basis
in different parts of the wor#d*
b. OTHERS
&thers inc#ude Ge"ittance K 2ransfer of !unds etc*
Since these were the products in which HABIB BAED AG
Z=GI>H dea#s with so "ain#y their <ob is interactions with the
custo"ers, which co"prises H=CAE G5S&=G>5S
F5$GA2C5E2*
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FINANCIAL CONDITION
2he Bank has a 'ery stron financia# position* It has a#ready
achie'ed the tareted return on in'est"entH with this the Bank
has a 'ery ood cash f#ow position* A#thouh the Bank has
authori,ed capita# of :1 "i##ion, it has on#y f#oated .1 "i##ion
shares* 2hus the Bank has a 'ery ood reputation in the
capita# "arket and can arrane the funds for the e/pansion
whene'er needed*
HUMAN RESOURCES SITUATION
2he Bank e"p#oyed a tea" of hih#y ?ua#ified and "oti'ated
personne# at the top positions* 2hese indi'idua#s are 'ery
e/perienced in their fie#d*
0hi#e the senior #e'e# is a#so 'ery e/perienced and ta#ented*
2he "idd#e #e'e# a#so ha'e a 'ery ood b#end of youn b#ood
and e/perienced personne#* 2he #ower #e'e# "ost#y consists of
peop#e with #itt#e or no e/perience* 2he Banks e"p#oyees turn
o'er rate is 11*9A*
After a brief ana#ysis and research it was found that, as the
Bank is new in the country the e"p#oyees does not fee# secure
to work with it* As "ost of the peop#e of the country fee#
secure to work with a reputed and stabi#i,ed orani,ation* It is
predicted that as the Bank e/pands it wi## stay in the country
and auto"atica##y ain confidence of its e"p#oyees and wi##
#ower its turno'er rate* Another reason is that, as the
orani,ation "ost#y hired youn peop#e they are "ore #ike#y to
switch o'er to new <obs because they are eaer to e/ce# and
whene'er they et a chance they switch o'er to other
orani,ation*
2he present e"p#oyee turno'er can be contro##ed, but the
"ain prob#e" is that the turno'er rate of "idd#e "anae"ent
is re#ati'e#y 'ery hih* !or further infor"ation the orani,ation
ha'e di'ided its hu"an resource in fi'e broad cateories+*
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o 2&$ CAEAG5C5E2
o S5EI&G CAEAG5C5E2
o CIFF)5 CAEAG5C5E2
o !IGS2 )IE5 CAEAG5C5E2
o S2A!! K 0&GD5GS
2he peop#e at HABIB BAED AG Z=GI>H are 'ery "oti'ated,
but the turno'er of e"p#oyees is 'ery poor especia##y in the
"idd#e and #ower "anae"ent*
HUMAN RESOURCES TURNOVER AND
REQUIREMENT CHART 2001
CATEGORY H/R BALANCE
EXP. TURNOVER IN
%AGE
EXPECTED
TURNOVER
TOTAL;
REQ.
FOR 2001
H/R
REQUIRED
TOP
MANAGEMENT
5 20 1 5 1
S.M / EXECUTIVES 1 !.5 1 1 1
M.L. MANAGERS 22 1" 0 11
F.L. MANAGERS ! 1 5 "0 #
STAFF / $OR%ERS "00 & "0 "#& 1&
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THE HUMAN RESOURCES
ENVIRONMENT
Hu"an resources are a "u#tifaceted fie#d that is affected by
copious e/terna# forces* Canaer needs to identify and
"anipu#ate these en'iron"enta# forces as they de'e#op hu"an
resources strateies and tactics for "eetin orani,ationa#
oa#s*
The environment of AGZ BANK is likely as follows
Competitive Since the Bank is forein and new in $akistan
the work force had to work 'ery hard and in order to "ake
the" work hard the top #e'e# "anae"ent initiate co"petition
a"on the e"p#oyees, so that workin is fun for the" at AGZ
BAED*
Att!a"ti#$ Emp%o&ee' Since the Bank is new in $akistan so
it needs work force therefore they are attractin new
e"p#oyees by i'in the" attractin packaes*
Ro%e o( U#io# As "entioned abo'e the Bank is forein so no
po#itica# acti'ity is present with in the pre"ises or out side the
pre"ise if any Branch of HABIB BAED AG Z=GI>H in any
where in the wor#d*
Te")#o%o$i"a% (a"to!' 2he Bank is fu##y co"puteri,edH paper
work is not co""on a"on the work force* A## the branches of
HABIB BAED AG Z=GI>H are interconnected with each other
#oba##y* Geuters has been setup in e'ery branch so as to keep
the work force update of the "arket situation*
*a$e' a#+ Be#e(it' 2he AGZ BAED offers attracti'e sa#ary
packae to each indi'idua# so as to encourae new e"p#oyees
to work hard and pro'ides the" benefits such as "edica# etc*
which i'es the" a satisfaction that in case of need the Bank
wi## for the" and they wont ha'e to worry*
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HUMAN RESOURCE PLANNING
$#annin done by the HABIB BAED AG Z=GI>H@S hu"an
resources depart"ent for the shortae of hu"an resources
that "iht occur under the circu"stances and the forecastin
so as to o'er co"e future shortae of e"p#oyees that "iht
occur*
LIKELY CAUSES OF DEMAND FOR HUMAN
RESOURCE
2here is a de"and for hu"an resource at a## #e'e#s in the
orani,ation due to se'era# reasons, which are as fo##ows+
L STRATEGIC PLAN
2he Bank is doub#in its they are p#annin to open "ore
branches and start A2C@s and >redit >ard syste"s so there
wou#d indeed be need for personne# in a## the depart"ents to
hand#e this need*
, SALES AND PRODUCTION -ORECAST
As indicated that Bank wi## be doub#ed so is custo"er
re#ationship is oin to be doub#ed*
2he need of hu"an resource to "anae the custo"er and to
hand#e the dai#y transactions the work force wi## be needed in a
hue a"ount*
, RETIREMENT. RESIGNATION. DEATH. ETC.
Feath is natura# and retire"ent is e'ery orani,ations #aw and
resination "iht occur at any ti"e fro" a certain e"p#oyee
due to certain circu"stances* So there shou#d be backup
a'ai#ab#e for these kinds of 'acancies with in the orani,ation*
As the e"p#oyee turno'er is co"parati'e#y hih, and the
reason stated abo'e cannot be a'oided so the hu"an
resources depart"ent "ust take "easures that cou#d fu#fi## the
de"and of hu"an resource if these reasons occurs*
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FORECASTING/PLANNING
TECHNIQUE
As we ha'e discussed that they know the #ike#y cause of
de"and for hu"an resource for AGZ now they ha'e to
forecast how "uch or of what ?ua#ity they need the hu"an
resource so as to fu#fi## the de"and for the hu"an resource*
A#thouh there are "any techni?ues for forecastin the
re?uired hu"an resource here they sha## use a co"bination of
so"e of the" that wou#d be co"patib#e for their orani,ation
and their ob<ecti'e*
As hu"an resource forecasts are atte"pts to predict an
orani,ation+s future de"and for e"p#oyees* 2here are "any
"ethods but say e'en the "ost sophisticated "ethods are not
perfect#y accurate instead they are 'iewed as appro/i"ations*
2he "ethod, which they are usin to forecast Hu"an resource
need at the AGZ BAED are as fo##owsH
IN-ORMAL / CASUAL ESTIMATES
2hese esti"ates wi## be "ade to forecast the hu"an resource
need for short run* 2his inc#udes re?uire"ents durin pressure
periods and other shortBter" re?uire"ents* 2hese
assu"ptions are as indicated 'ery casua# so they are done to
"eet the hu"an resource re?uire"ent at the #ower #e'e#,
which do not need such specia#i,ation and are nonBtechnica# in
nature, and are easi#y a'ai#ab#e*
E0PERT -ORECAST AND NOMINAL GROUP
TECHNI1UE
At the AGZ BAED they wi## use the b#end of e/pert forecastin
and no"ina# roup techni?ue*
As #ine "anaers e/act#y know what wi## be the future
re?uire"ents for their depart"ents, they wi## be 'ery
beneficia# in assessin the needs but they cou#d not be entire#y
re#ied on* A pane# of e/pert wi## work on their suestions and
then endorse or re<ect their ad'ice* 2his doub#e check wi##
ensure correct forecast that can be he#pfu# in achie'in the
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orani,ation+s ob<ecti'e in a better way* 2his "ethod wi## be
e/ce##ent for specia#i,ed and i"portant positions* 2he b#end of
these techni?ues wi## a#so he#p in achie'in the #on run need
for hu"an resource and thus he#p in achie'in strateic oa#s
for the orani,ation* !or this the orani,ation wi## be usin
e/pert forecast usin the #ine "anaers, and no"ina# roup
techni?ues whi#e usin the pane# of e/perts for forecastin
their need*
E0TRAPOLATION AND INDE0ATION
!or he#pin the "anaers in casua#, e/pert forecast and
no"ina# roup techni?ue forecast e/trapo#ation and inde/ation
techni?ues wi## be used* 5/trapo#ation and inde/ation
techni?ues are basica##y trend pro<ection forecast*
5/trapo#ation in'o#'es e/tendin past rate of chanes into the
future* 0hi#e inde/ation is a "ethod of esti"atin future
e"p#oy"ent need by "easurin e"p#oy"ent rowth aainst a
particu#ar inde/* Both these techni?ues wi## he#p the "anaer
in forecastin with the idea and base to work on* 0ith these
techni?ues they wi## be in a better position and "ake better
<ud"ent of the future need of the orani,ation*
SUPPL2 O- HUMAN RESOURCE
Eow we ha'e co"e to know the future e"p#oy"ent need
throuh the staffin tab#e* 0e ha'e to e'a#uate the source of
the supp#y of hu"an resource* In case of AGZ BAED #ike a##
other orani,ations hu"an resource "ay be a'ai#ab#e fro" the
interna# as we## fro" the e/terna# supp#y*
ESTIMATES O- INTERNAL SUPPL2
2o esti"ate the supp#y of hu"an resource fro" within the
orani,ation hu"an resource audit is done* In AGZ BAED 2H5M
are p#annin to do hu"an resource audit to ain know#ede of
the ?ua#ity of hu"an resource a'ai#ab#e within the
orani,ation* Hu"an resource audit a#so he#p to find out the
e"p#oyees abi#ity and potentia# and the trainin and ski##
re?uired for the career de'e#op"ent*
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Hu"an resource audit done for nonB"anaers are ca##ed
ski##ed in'entory, whi#e the audit for "anaers are ca##ed
"anae"ent in'entories*
2hrouh assessin the interna# hu"an resources it wou#d be
easy to <ude that what type of the e"p#oyees are present
with in the orani,ation and what type are to be needed*
Hence throuh the $#annin techni?ues, as stated by the HG
depart"ent head Cr* Arshad Abbasi in his draft and "entioned
abo'e in "y report, work force for the future can be
"aintained and a better Hu"an Gesources Fepart"ent can be
created for HABIB BAED AG Z=GI>H*
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CONCLUSION
HABIB BAED AG Z=G>H is a forein Bank which see"s to be
workin in a ood and sur'i'in condition in this country as
because "any of the pri'ate banks has been shutdown due
interna# prob#e"s and due to dreadfu# cash f#ow troub#e* HABIB
BAED AG Z=GI>H specia#i,es in the fo##owin products
%Bankin re#ated( Feposit products, )endin product,
in'est"ent Bankin, >orrespondent product and others which
inc#ude Ge"ittance K 2ransfer of !unds etc*
Since a## these products in'o#'es custo"er re#ationship so the
HGC depart"ent of HABIB BAED AGZ is of the "ost i"portant
asset to it in order to continue s"ooth bankin* 2he Hu"an
resources is the recruit"ent, se#ection, and trainin of staff,
and efforts to in'o#'e the" in the co"pany* 2he Hu"an
Gesources Fepart"ent of AGZ is doin an e/ce##ent <ob and
has "aintained a we##Bestab#ished staff*
Fue to certain reason as "entioned abo'e in the report the
HGC depart"ent is #ike#y to ha'e a #ack of personne# in the
future and in order to o'erco"e this task the "anaer of AGZ
bank has p#anned a draft which is indeed a "ar'e#ous work
and ha'e de'e#op so"e forecastin techni?ues to a'oid future
disasters within HGC depart"ent*
It was indeed a #earnin e/perience to 'isit HABIB BAED AG
Z=GI>H and to ain know#ede about H=CAE G5S&=GS5S
SMS25C and to "eet inte##ectua# peop#e at their pre"ises*
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