United Bank Limited (ubl) Hrm

University of Central Punjab HRM Project Company: Section: C Group Members NamesReg#Mohsin MahmoodL1S07MBAM2006Sana ShabberL1F06MBAM2198Sara AltafL1F06MBAM2201Amna RafiqueL1F06MBAM2205Jaweria KhanL1F06MBAM0029Haq NawazL1S07MBAM2015

Prepared for Prof. ARJUMAND

“In the name of ALLAH, The Most Merciful, the Most Kind” Acknowledgement

We are so much grateful to our Prestigious Prof. ARJUMAND who gave us this opportunity to make this Human Resource Development Report of United Bank Limited which enhances our ability in understanding HR functions in corporate world and making report on them. We would also like to pay our thanks to UBL HR Representative Mrs. Wajiha Ahmad who provide us all the information of Human Resource function of United Bank Limited and all other manager who help us in providing in-depth information on the environment and culture of United Bank Limited. I (Mohsin Mahmood) also like to thanks my brother Hassan Mahmood for helping me in making this report by arranging the meeting of interviewing HR manager.

2 Where you come first

CONTENTS Page NO. 1.

Executive Summary

5

2.

History of United Bank Limited

6

3.

UBL Introduction

7

A

Mission Statement

7

B

Vision

7

C

Introduction

8

4.

SWOT Analysis of UBL

10

5.

UBL HR Functions

12

6.

UBL HR Objectives

12

7.

UBL HR Planning’s and Policies

12

8.

A

Attracting Methodology

12

B

Organization Chart

13

C

Investment in Development & Performance

13

D

UBL Structure

14

E

Organizational Values

14

F

UBL Culture

14

G

UBL Working Environment

15

H

HR Measuring Method

15

Job Analysis

15 3 Where you come first

A

Techniques for Job Analysis

16

9.

Job Evaluation

16

10.

Recruitment

16

A

Internal Recruitment Sources

16

B

External Recruitment Sources

17

11.

Selection A

The Application Form

17

B

Written Tests

18

C

Performance Exams

18

D 12. 13. 14. 15. 16. 17. 18. 19.

17

Selection Interview Training & Development Performance Appraisal Compensations and Benefits

18 19 19 20 20

Stress Handling Critical Evaluation of HR Functions Group Conclusion & Recommendation

20 22 23

Bibliography

24

Credits Semi-Structured Questioner

4 Where you come first

Executive Summary

United Bank Limited is one of the banks playing a very important role in the economic development of Pakistan. It’s providing high quality services, manage customer experience efficiently, have comparative advantage due to its innovative technology and provide high profit to its stakeholder. In order to maintain and improve its services in the competitive market UBL Human Resource Department plays a very important role. You will find in this report the complete HR function of UBL. The Vision, Mission and Strategic goal of UBL what are the methods followed by UBL for analyzing and evaluating its Jobs. How UBL recruit and select new employees. The methods used by UBL training and developing new skills in their employees. The methods used for performance appraisal of its job incumbents. Compensations and benefits provided by UBL to its employees and some other HR Functions. Group suggestions/recommendations for making UBL human resource management functions more effective

5 Where you come first

Purpose of This Project The main purpose of this project is to highlight and to study the Human Resource Department of United Bank Limited. It provides a brief overview of the organization and all the ways, strategies and alternatives mainly used by Human Resource Department of UBL.

History of UBL United Bank Limited was established in November 1959. The bank was sponsored by the saigol Group of Companies, which were the mainstay of the textile industry in Pakistan at that time. Within a short period of time, the bank emerged as the third largest in the country after HBL and NBP. The bank was nationalized in 1974. Later on another bank the commerce bank limited was merged into UBL. UBL was the third bank to be offered for privatization. Initially, a Saudi based financial institution; Bashrahil Group came up with the highest bid for the bank, and deposited the first tranche for its consideration. However, due to flaws in the transaction, the SBP cancelled the privatization and took over the bank in 1995. The Bank’s total income including interest and non-interest income amounted to RS.4935 million in 1995, its deposits were RS. 109 billion and investments were RS.25 billion in 1995. UBL incurred a loss of RS.724 million in 1995. In 1996 the management of the bank was changed and by mid 1997 the financial and administrative discipline was restored. The interference of the government was eliminated and the non-performing loans recovery was increased and the liquidity position was brought up to the required level. About RS.6.3 billion were recovered out of which about RS.5 billion were domestic and of this about Rs. 4.5 billion was recovered in cash. A right sizing program was initiated as well as an aggressive branch rationalization strategy by which 203 loss making branches were shut down and profitable ones were opened in other areas. Surplus staff was removed which amounted to 5416 employees. The entire audit system was revamped. 6 Where you come first

United Bank Limited Introduction

A.

Mission Statement of UBL:

“To develop and deliver the

most innovative

product, manage customer experience, deliver quality service that contributes to brand strength, establish a comparative advantage and enhance profitability, providing value to the stakeholders of bank”

B.

UBL Vision: “To be the premier organizations operating locally & internationally that provides the complete range of financial services to all segments under one roof”

7 Where you come first

C.

UBL Introduction: United Bank Limited was established on November 7, 1959 and incorporated as a Public Limited Company under Companies Act 1913. The UBL Board of Directors of are:

Highness Shaikh Nahayan Mabarak Al Nahayan Sir Mohammed Anwar Pervez OBE Mr. Atif R. Bokhari Mr. Omar Ziad Jaafar Al Askari Mr. Zameer Mohammed Choudrey Mr. Ahmad Waqar Dr. Ashfaque Hasan Khan Mr. Aqeel Ahmed Nasir Mr. Abdul Pauf Malik Mr. Ameer Karachi wall

Chairman Deputy Chairman President & CEO Director Director Director Director Company Secretary & Chief Legal Director Chief Financial Officer

The Bank is currently operating 1056 Branches Domestically and 15 Branches Overseas (USA, Qatar, UAE, Bahrain and Republic of Yemen). UBL hold 51% of its total shares other 49% shares are owned by Government. After the privatization of banking sector in Pakistan UBL implemented its strategies to achieve the comparative advantage in the Market place. UBL subsidiaries are:

•

United Bank AG Zurich, Switzerland

•

United National Bank Limited, UK

•

UBL Fund Managers Limited

8 Where you come first

UBL due to its innovative corporate culture wins their customer trust. UBL is running four websites to provide information and customer services which are: •

www.ubl.com.pk,

•

www.ublonline.com

•

www.ublfunds.com

•

www.ublinsurers.com The depositing services offered by UBL are Business Partner, Rupee Trans A/C,

Basic Banking Account, UBL UniFlex, UBL UniSaver, UBL Profit COD, Term Deposits Receipts, FCY Savings, and FCY Term Deposits. The loan and card services are UBL Address, UBL Businessline, UBL Cashline, UBL Drive, UBL Credit Card, UBL Money, and some other services are UBL netbanking, UBL e-statement, Hamrah, UBL Wallet, UBL Click n Bank, UBL Click n Remit, UBL TezRaftaar.

9 Where you come first

SWOT Analysis

i.

Strengths: •

3rd largest Bank of Pakistan in term of deposits

•

2nd largest Privatized Bank of Pakistan

•

UBL offering Customized Products and services aggressively better then its competitors

•

Improved operational efficiency as to its past

•

Courteous Customer service and fast delivery of online and offline services

•

Marvelous Image and Reputation of the bank in the eyes of its customers

•

Extensive Branch network

•

UBL Product positioning is very effective

•

UBL target the segment like salaried person, business people and self employed person

•

UBL product positioning affect the life style of the people as they help in improving standard of living 10 Where you come first

•

1056 Branches all over Pakistan

•

Stands in the list of Profitable bank in stock exchange

•

Largest number of corporate deals by any bank is Pakistan

•

Overseas Branches

•

Attractive Salaries and incentives for employees

•

Personnel of UBL are very well trained. Majority of employees have many years of experience in banking sector and are an asset for the bank.

ii.

Weaknesses: •

No standardization in terms of branches some of the branches are very attractive and most of the branches are not very good like other branches.

•

In some regions, urban areas of Pakistan service of UBL is not good as compared to other privatized banks

•

The application time is also quite lengthy.

•

UBL is a step behind in using new technology as compared to other banks

•

All branches need orientation for customer dealing.

•

Most of the employees are overload with the work and promotion is also not timely.

•

Most of employees are experienced and they are not able to deal customers well, adopt new culture and above all they are unable to use of new technology like computers.

•

No separate training center to train their employees 11 Where you come first

iii.

•

Employees are not well dressed

•

Workforce is not diverse

•

Security system in most of the branches is not up to the mark.

Opportunities: •

Bank can extend its network in other cities of Pakistan like other 4 remote cities, it would increase their sales.

•

Proper orientation of employees in all branches can help them to cope up with foreign banks

•

By bringing new technology and modern business processes will bring the change and increase their profitability

•

iv.

Call centre services should be improved to enhance their network

Threats: •

Large and increasing competition.

•

High operating costs

•

Lack of huge deposits

HR Functions

12 Where you come first

Following are the major Human Resource Management Functions of United Bank Limited

6. HR Objectives:

The objectives are to look out for the well being of all employees of the UBL. Provide leadership and direction to employees of the company. Career Development planning for all employees of the company. Ensure thorough training of nationwide employees. To provide individual employees with orientation on the company at the time of joining. To provide employees with solutions to their problems. Maintaining data records of all employees of UBL (Human Resources information System). To evaluate and retain those employees who are assets to the company.

7.

UBL HR Planning’s and Policies:

United Bank Limited follows Business-level/Competitive Strategy (competitive strategy identifies how to build and strength the business’s long-term competitive position in the market place) because of vast number of its competitor in the market place. UBL analyze it’s strengths with weakness and opportunities with threats to maintain its comparative advantage. The competitive advantage of UBL is based on Differentiation. It provides different online and offline services to win its customer and periodically analyze the competitive marketplace to enhance its services at a high level.

Attracting Methodology:

13 Where you come first

Generating required Human Resource policy of UBL is that they attract the current employees by offering them Promotion, Cash award, increment, bonuses and stock option so keep up and generate external candidate by offering good salary packages, Career oriented jobs, Accommodations etc.

Organization Chart:

The organization design of UBL is Horizontal (which has low hierarchical level). There are different Groups containing 10 to 12 people which are assigned different tasks to work on each group has its own supervisor who supervise all employees in its group.

14 Where you come first

Investment in Development & Performance:

UBL invest in HR Development and performance by promoting or giving rewards to those employees whose performance is better. The performance appraisal of each employee is conducted annually in UBL.

UBL Structure:

Organizational Values:

15 Where you come first

•Trust and Integrity •Respect for people •Responsible corporate citizens •Passion for business excellence •Commitment to total customer’s satisfaction

UBL Culture:

United Bank Limited culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. The organizational culture of UBL is that it always provides profit to its stakeholder and never misrepresents its financial reports and will never do any unethical act which harms its client and competitor. The employees of UBL will always be helping and friendly with its customers. The norms of UBL are it always follows the Laws of country and maintain its goodwill.

UBL Working Environment:

The working/organization environment of UBL is very sophisticated. Environment is very friendly due to group coordination. Employees can easily communicate horizontally and vertically which help to achieve its goals and objectives. Employees have to follow formal code of ethics of United Bank Limited

16 Where you come first

HR Measuring Method:

United Bank Limited uses Scorecard Approach to measure the effectiveness and efficiency of HR department. UBL follow the seven steps to measure its HR department. First UBL define its business strategy (discussed above). Second its outline the company’s value chain activates (activities which create value for customers and related supporting activities). Then it outlines what organizational outcomes (goals and targets) the bank has to achieve. Then it evaluates the workforce required to achieve the goals. After that UBL devise its HR policies and practices (what new training is required?). Then it designs the HR scorecard and periodically evaluates the measurement system.

8.

Job Analysis:

Job Analysis is the procedure through which you determine the duties of the position and the characteristics of the people to hire for them. Job analysis produces information used for writing job descriptions and job Specifications.

Techniques for Job Analysis:

UBL only use Qualitative Techniques of analyzing jobs. The techniques UBL uses are Interview and Open-ended Questionnaires. They use interviews in which employees are ask what the job entails and questionnaires in which employees are asked different question about what are the activates they perform in job.

17 Where you come first

9. Job Evaluation:

Job Evaluation is a systematic comparison done in order to determine the worth of one job relative to another

Job evaluation technique used by UBL is Ranking Method in which each job relative to all other jobs according to its difficulty level like for example job of supervisor is tougher than the manager working under its supervision.

10.Recruitment: In order to determine the future staff needs United Bank Limited uses Ratio Analysis technique (a Forecasting technique for determining future staff needs by using ratios between, for example sales volume and number of employees needed) in which trend between two trends is determined like volume of deposits, revenue, new branches etc and number of employees needed to perform tasks. Internal Recruitment Sources: In forecasting the supply of inside candidates UBL use Qualifications inventories (manual or computerized records listing employees education career and development interests, languages, special skills and so on to be used in selecting inside candidates for promotion) so in order to replace a supervisor of a department a person below educated then the current supervisor will be selected as a new supervisor.

External Recruitment Sources: External source for hiring employees use by UBL is Succession Planning (the ongoing process of systematically identifying, assessing and developing organizational leadership to 18 Where you come first

enhance performance) in which UBL do analysis on the important or key jobs in the organization, create a list of competent employees who can fulfill the requirement of that job and then select the best employee who can perform that job efficiently and affectedly. The internal sources used by the United Bank Limited for hiring candidate are Advertisement, Head hunter and Word of Mouth. In advertisement they use different mediums like Television, Newspaper, subscribing the jobs on Job sites e.g. •

www.rozee.pk,

•

www.monster.com

UBL has hired its own Retained Executive Recruiters/Head hunter (Executive recruiters are special employment agencies retained by employers to seek out top-management talent for their clients) to find competent and qualified people for UBL. But due to some circumstances there is flexibility in hiring the employees externally and internally for example non availability of required candidates, lack of time, lack of resources etc. Usually United Bank Limited don’t take Referrals but due to some reason they do sometime take referrals for example referral form a high command person, person on referral is qualified and competent etc.

11.Selection:

Selection process of UBL based on Qualification, Previous job experience, Age and health of candidate.

The Application Form: For selection process the first step which candidate to be fulfilled is application form, this show about the candidate’s education, previous performance, prior work history, experience, hobbies and health condition? As such, it is extremely critical for his/her continued participation in the 19 Where you come first

examination process. Before that candidate has to review thoroughly what the Job advertisement specifies the requirements to qualify for the position. Candidate must meet all the criteria to be considered for the position; ensure that, otherwise candidate will be wasting his effort in completing the application. Written Tests: Written exams are usually obtained from one of several test construction firms available to them. These tests are designed to determine level of technical and/or analytical abilities associated with the particular position for which candidate had applied. Unstructured questionnaire and IQ test (intelligence test) Test results are sent by mail, usually within 6 working days. If receive a passing score candidate will be invited to continue in the examination process Performance Exams: Test ability to accomplish specific job-related tasks by providing the opportunity to actually perform them. These tests are scheduled through the Human Resources Department office, with notification in writing of the date, time, location and duration of the test. Instructions will be given on the tasks to be completed and then asked to complete them. Individuals with considerable relevant experience will conduct the evaluations. Safety, quality of work, adaptability, performance under stress, etc. are evaluated. Specialized Testing Selection Interview Once the List of candidate who is capable enough, is established it is sent to the Department(s) that is hiring to fill a current vacancy. The Department Head is responsible for setting up Selection Interviews. He/she may interview anyone on the list; The Department Head will be looking for the candidate with the best qualifications for their particular position. The candidate who is selected, investigate his/her background and a probationary period before attaining permanent employment status. Additionally, in accordance with Federal Law, the candidate is required to provide proof of identity and proof they may legally work.

20 Where you come first

12. Training

& Development:

Training refers to the methods used to give new or present employees the skills they need to perform their jobs. Development include employee, management, organizational and career development which develop employees skills, management which enhance executive’s abilities, organizational cultural development and career development of employees.

Training methods used by United Bank Limited are Soft Skill Functional Training, On-The Job Training and Class Room lectures.

In soft skill functional training UBL give training to improve personality traits, social grace, friendliness, personal habits and fluency of language. In On-the job training UBL uses different method like Coaching or understudy method in which supervisor act as a coach and teach the trainee to the perform the task on the job and Job rotation method is used by UBL for those employee who need multi skills to perform the job.

13.Performance Appraisal:

In performance appraisal of employees UBL use Graphic Rating Scale Method (a scale that lists a number of traits and a range of performance for each. Employee is then rated by identifying the score that best describes his or her level of performance for each trait) in which UBL measure the characteristics and previous performance of employees and then rank them subsequently. 21 Where you come first

In the performance process UBL first discuss the job and duties assigned to the each subordinate in the Groups. After that they compare their actual performance with the standards which are set by the UBL. Then the performance reports of subordinates are discussed with them and make plans if any development is required or not.

14.Compensations and Benefits: United Bank Limited provide compensations to its employees in shape of Cost of any medical Treatment, Cancelled Holidays fees, Repair of vehicle, any injury while doing job tasks and some other. Employees can claim their compensation if any above case occurs. Benefits which are provided by UBL are Paid time off, Retirement, Disability Insurance, Education and training programs. In Paid time off benefits the employee is paid for the time he don’t worked duo to vacation, holiday pay and sick pay. Retirement benefits are in shape of pension, gratuity, provident fund and superannuation fund. In disability insurance bank provides financial support when an employee becomes injured or ill and is unable to do his/her job and in education & training programs bank provide different education & training to their employees to furbish their skill. 15. Stress

Handling: The techniques used by United Bank Limited to handle stress among its employees

are by providing better atmosphere in the office which is neat & clean, Air-conditioned, peaceful and relaxed so employees can work with their full potential. Lunch break are also provided to employee to reduce stress among them. This also creates a relaxed atmosphere because employees can chit chat in that break.

22 Where you come first

United Bank Limited sometime also arrange excursion tour for their employees to lessen their workload and fresh their mind for the challenging task ahead them and sometime send employees on vacation with their families.

16.Critical Evaluation of HR Functions:

As we review the HR Functions of United Bank Limited we asses that UBL have strengthened its roots in the market place and competing with its competitors successfully. It has at a vast level providing online service and one of the leading banks in e-banking in Pakistan. The Horizontal organization design of UBL is also the reason of its success because as compare to vertical organization design horizontal is better due to fast and easy flow of communication among the employees. UBL is playing a very significant role in providing employment, Loan etc which increaser the per capita and living standard of civilians. UBL culture and environment is also better as we compare to its competitor because there are some ethical norms, values which are the soul of UBL and the environment is very selfrelieving, relaxing in which employees work their best. While measure the efficiency and effectiveness of HR department functions Score Card Approach is best and most frequently used in corporate environment. This approach easily gives UBL accurate results.

Interview is the most commonly used for job analysis. UBL use interview and questionnaire to ask for employees what the job entail and then write the job description and job specification. For job evaluation UBL use ranking method in one job is compared from another. This is not the best one as compare to some of its competitors

The recruitment methodology used by UBL is Ratio Analysis in which ratio between two trend is determined which is one of the best method to forecast future employee need.UBL use qualification inventories, advertisement and head hunters to find new talented 23 Where you come first

employees. But UBL sometimes due to some reason show flexibility to hire new employees in which low competent employees are hired and referrals is also the reason of hiring unqualified and not competent people.

UBL only take Intelligence test (IQ) to analyze new employees for selection due to which people who are not intelligent but have other skills are not hired. For Training and development UBL use different method which are Soft Skill Functional Training, on-the job Training and class room lectures. These methods are the main reason for UBL success and Good services.

For performance evaluation of employees UBL use Graphic rating scale method which promote and give rewards to employees due to their good traits and performance during the session. UBL conduct performance appraisal at the end of year so the session is of one year.

The compensation and benefits plan of UBL are also very good as to its competitors. They provide Paid-time off, Retirement, Disability Insurance, Education and training programs to their employees. Employees stress handling during the work is also best UBL handle stress of its employees like many of its competitor are not be able to handle.

This is all the information that we get from UBL HR manager. The visiting card of HR manager is also attached.

17. Suggestions/Recommendations:

24 Where you come first

As we group members analyze the HR function of United Bank Limited are not one of the best HR function of corporate world. Many of its competitors have better HR function as compare to UBL Bank. We suggest and recommend that first of all •

There should be a development of Assessment Center so that employees should be train at high level.

•

Referral should be ignored

•

We suggest that UBL should used Diversification corporate strategy in which new and innovating services should lines

•

UBL should use Participant Diary/Logs and Position analysis Questionnaire method with their current methods so for writing Job description

•

UBL should use a combination of Ratio Analysis and Trend Analysis (study of a firm’s past employment needs over a period of years to predict future needs) for recruitment.

•

We recommend UBL should use College Recruiting from honored universities like UCP.

•

Panel Interview should be conducted then individual interview

•

We suggest that UBL should use Paired Comparison Method for performance appraisal

18.Bibliography Mrs. Wajiha Ahmed HR Representative Regional Head Quarter 3rd Floor, Aftab Center, 25 Where you come first

30Davis Road, Lahore. Ph: 042-6033217 -6371093 Email: [email protected]

Web links: i.

https://www.ubl.com.pk/

ii.

http://www.wikipedia.org/

iii.

www.ublonline.com

26 Where you come first

Credits Mohsin Mahmood Designing and composing of this report and Interviewer of HR manager Sana Shabber Data Collector Sara Altaf Data Collector Amna Rafique Data Collector & composing Helper Jaweria Khan Data Collector Haq Nawaz Financer and Free flyer

27 Where you come first