Hrm Ag Zurich Bank

INTRODUCTION ABOUT HABIB BANK AG ZURICH

HABIB Bank AG Zurich, a Swiss incorporated bank was founded in 1967 by the renowned HABIB Banking Family of Pakistan, the same family who had founded and owned HABIB Bank (Overseas) Ltd. and HABIB Bank Limited, the largest bank of Pakistan till it's nationalization in 1974.

At the time of it's incorporation,' HABIB Bank AG Zurich had a modest capital of Swiss Francs 2 million, with only one branch in Zurich, Switzerland. After nationalization of all the banks in Pakistan, the family decided to grow and expand the operation of HABIB Bank AG Zurich.Within a period of only 26 years of its expansion program, the family managed to grow the Bank to such an extent, that today it is ranked amongst the top 1000 banks of the world.This kind of exceptional achievement is difficult for any banking institution to attain, in such a short period of time. Indeed, it is a milestone for a family owned and managed private banking institution. Such progress is difficult to achieve even after decades of existence.

“The Banker” magazine of England, in its July 2000 issue, gave the following rankings toHABIB Bank AG Zurich: It appears as 862nd largest bank in the World's overall ranking, among hundreds of thousand of banks. The bank is placed as 342nd in soundness and is ranked as 420th in performance. The ranking by size and assets is 854th and by return on assets, the bank stands at 384th. Whereas in real profit growth, HABIB Bank AG Zurich is ranked at 111th among all the banks of the world, a very creditable performance indeed.

"The Banker" has placed HABIB Bank AG Zurich at 28111 largest banks among the 1,038 banks in Switzerland. In soundness, the bank enjoys a ranking of 10 and in performance 9. In real profit growth, the bank is ranked at number 4 in Switzerland, only after three major banks of Switzerland, i.e. Union Bank of Switzerland, Credit Suisse Group and EFG Bank European Financial Group. The capital adequacy of the bank can be judged by the fact that against a

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BIS’ capital requirement of 8%, the bank maintains 'A capital adequacy ratio of 19%'.

The bank has the largest over-seas network of branches as far as Swiss banks are concerned. Additionally, the bank enjoys a ranking of 362nd largest bank amongst the banks in Europe.

The above achievement for HABIB Bank AG Zurich is not only a source of pride for the family who owns and manages this bank, but Pakistan can feel proud that it has produced bankers of the highest international standard. HABIB Bank AG Zurich has branches all over the world i.e. Zurich, Switzerland, Moorgate, East End West End in London, Manchester, Glasgow, Leicester, Southall and Birmingham in England. In Kenya, Nairobi , Mombassa, Westland, Industrial Area.

In United Arab Emirates, the bank has branches in Deira, Par Dubai, Corporate Branch, Sikkat AI Khail, Jebel Ali, Sheikh Hamdan and AI Falah Street, Abu Dhabi and a branch in Sharjah. In Srilanka, the bank has branches in Main Street, Fort, Wellawatta, Colpetty, and a Foreign Currency Banking Unit in Colombo.

HABIB Bank AG Zurich also has fully owned subsidiaries in Isle of Man, South Africa and Canada and representative offices in Hong Kong and Cario. The Bank has six branches in Pakistan including three in Karachi, and one each at Lahore, Faisalabad and Rawalpindi.The first branch was opened in Karachi in July 1989. Over a period of ten years, the bank has contributed over one and half billion rupees to the country's exchequer, besides providing employment to 370 people in Pakistan.

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MANAGEMENTProcess or technique of managing a business. Systems vary according to the type of organization, company, and objectives. Since the early 1970s, there has been a growing demand for learned management skills, such as those taught in the Harvard Business School, USA, and at the London Business School. By contrast, in Japan, such skills are learned on the job; employees tend to spend their careers with the same company and towards the end will acquire managerial status. In Europe, there has been a trend toward management by consensus, rather than by the individual.

HUMAN RESOURCES MANAGEMENTA comprehensive integrated system for effectively managing the workforce in the effort to achieve organizational goals.The HRM system includes hiring, firing and payrolls. The human resources management process leads to productivity by balancing personnel availability and requirements in accordance with the organizations resources and strategic plans; human resource managers at HABIB Bank AG Zurich contribute to organizational study plans as well as act upon them.

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ORGANIZATIONAL CHART OF HABIB BANK AG ZURICH

(Summarized)1

After the lower level managers the lower level staff comes which includes the peons and other Officer Grade personnel’s.

Where as V.P and A.V.P’S are further classified into their departments i.e. FINANCE, MARETING, HR etc. and so also the LOWER LEVEL MANAGERS.

V.P = Vice PresidentA.V.P = Assistant Vice PresidentE.V.P = Executive Vice PresidentS.E.V.P = Senior Executive Vice President

1 The chart is summarized as because the original chart is too big 4


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MEETING THE ORGANIZATIONAL GOALS

The Human resources plays a vital role in any organizations ability to meet its goals. In HABIB BANK AG ZURICH, since the Bank is a foreign bank, they have really hard work to perform the personnel department sits over night in order to achieve the goals.As AGZ deals with the following products:

I. DEPOSIT PRODUCTS

To open a CURRENT ACCOUNT in dollars or any other currency of you’re choices, with cheque writing facility. Perhaps if you want to make a short-term deposit, to ensure security of cash with interest for a period ranging from one to seven days, one month or one year. In this case their SAVINGS ACCOUNTS, TIME DEPOSIT ACCOUNTS and CALL DEPOSIT ACCOUNTS would be just what you need.

These are the types of deposit accounts:

Current Account Savings Account Time Deposit Account Call Deposit Account

II. LENDING PRODUCTS

Overdraft Trust Receipt Commercial Loan Cheque Discounting Export Bills Discounting Packing Credit Letters Of Credit Auto Loan Salary Loan Rent Loan

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31ST, MAY 2001III. INVESTMENT BANKING

Through this service you can trade in shares or debentures in any currency, receive regular updates on the international market, and get access to the latest information on share profiles.

IV. CORRESPONDENT BANKING

Banking transactions to be carried out on a regular basis in different parts of the world.

V. OTHERS

Others include Remittance / Transfer of Funds etc.

Since these were the products in which HABIB BANK AG ZURICH deals with so mainly their job is interactions with the customers, which comprises HUMAN RESOURCES DEPRATMENT.

FINANCIAL CONDITION 6


31ST, MAY 2001The Bank has a very strong financial position. It has already achieved the targeted return on investment; with this the Bank has a very good cash flow position. Although the Bank has authorized capital of 50 million, it has only floated 20 million shares. Thus the Bank has a very good reputation in the capital market and can arrange the funds for the expansion whenever needed.

HUMAN RESOURCES SITUATIONThe Bank employed a team of highly qualified and motivated personnel at the top positions. These individuals are very experienced in their field.While the senior level is also very experienced and talented. The middle level also have a very good blend of young blood and experienced personnel. The lower level mostly consists of people with little or no experience. The Banks employees turn over rate is 11.3%.

After a brief analysis and research it was found that, as the Bank is new in the country the employees does not feel secure to work with it. As most of the people of the country feel secure to work with a reputed and stabilized organization. It is predicted that as the Bank expands it will stay in the country and automatically gain confidence of its employees and will lower its turnover rate. Another reason is that, as the organization mostly hired young people they are more likely to switch over to new jobs because they are eager to excel and whenever they get a chance they switch over to other organization.

The present employee turnover can be controlled, but the main problem is that the turnover rate of middle management is relatively very high. For further information the organization have divided its human resource in five broad categories'.

o TOP MANAGEMENTo SENIOR MANAGEMENTo MIDDLE MANAGEMENTo FIRST LINE MANAGEMENT

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31ST, MAY 2001o STAFF / WORKERS

The people at HABIB BANK AG ZURICH are very motivated, but the turnover of employees is very poor especially in the middle and lower management.

HUMAN RESOURCES TURNOVER AND REQUIREMENT CHART 2001

CATEGORY H/R BALANCE

EXP. TURNOVER IN %AGE

EXPECTED TURNOVER

TOTAL; REQ. FOR 2001

H/R REQUIRE

DTOP

MANAGEMENT 5 20 1 5 1

S.M / EXECUTIVES 13 6.5 1 13 1M.L. MANAGERS 22 14 3 30 11F.L. MANAGERS 36 13 5 40 9

STAFF / WORKERS 400 8 40 498 138

THE HUMAN RESOURCES ENVIRONMENT

Human resources are a multifaceted field that is affected by copious external forces. Manager needs to identify and manipulate these environmental forces as they develop human

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31ST, MAY 2001resources strategies and tactics for meeting organizational goals.

The environment of AGZ BANK is likely as follows

Competitive: Since the Bank is foreign and new in Pakistan the work force had to work very hard and in order to make them work hard the top level management initiate competition among the employees, so that working is fun for them at AGZ BANK.

Attracting Employees: Since the Bank is new in Pakistan so it needs work force therefore they are attracting new employees by giving them attracting packages.

Role of Union: As mentioned above the Bank is foreign so no political activity is present with in the premises or out side the premise if any Branch of HABIB BANK AG ZURICH in any where in the world.

Technological factors: The Bank is fully computerized; paper work is not common among the work force. All the branches of HABIB BANK AG ZURICH are interconnected with each other globally. Reuters has been setup in every branch so as to keep the work force update of the market situation.

Wages and Benefits: The AGZ BANK offers attractive salary package to each individual so as to encourage new employees to work hard and provides them benefits such as medical etc. which gives them a satisfaction that in case of need the Bank will for them and they wont have to worry.

HUMAN RESOURCE PLANNINGPlanning done by the HABIB BANK AG ZURICH’S human resources department for the shortage of human resources that might occur under the circumstances and the forecasting so as to over come future shortage of employees that might occur.

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LIKELY CAUSES OF DEMAND FOR HUMAN RESOURCE

There is a demand for human resource at all levels in the organization due to several reasons, which are as follows'

• STRATEGIC PLAN

The Bank is doubling its they are planning to open more branches and start ATM’s and Credit Card systems so there would indeed be need for personnel in all the departments to handle this need.

• SALES AND PRODUCTION FORECAST

As indicated that Bank will be doubled so is customer relationship is going to be doubled.The need of human resource to manage the customer and to handle the daily transactions the work force will be needed in a huge amount.

• RETIREMENT, RESIGNATION, DEATH, ETC.

Death is natural and retirement is every organizations law and resignation might occur at any time from a certain employee due to certain circumstances. So there should be backup available for these kinds of vacancies with in the organization.As the employee turnover is comparatively high, and the reason stated above cannot be avoided so the human resources department must take measures that could fulfill the demand of human resource if these reasons occurs.

FORECASTING/PLANNING TECHNIQUE

As we have discussed that they know the likely cause of demand for human resource for AGZ now they have to forecast how much or of what quality they need the human resource so as to fulfill the demand for the human resource. Although there are many techniques for forecasting the required human resource here they shall use a combination of some of them

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31ST, MAY 2001that would be compatible for their organization and their objective.

As human resource forecasts are attempts to predict an organization's future demand for employees. There are many methods but say even the most sophisticated methods are not perfectly accurate instead they are viewed as approximations. The method, which they are using to forecast Human resource need at the AGZ BANK are as follows;

INFORMAL / CASUAL ESTIMATES

These estimates will be made to forecast the human resource need for short run. This includes requirements during pressure periods and other short-term requirements. These assumptions are as indicated very casual so they are done to meet the human resource requirement at the lower level, which do not need such specialization and are non-technical in nature, and are easily available.

EXPERT FORECAST AND NOMINAL GROUP TECHNIQUE

At the AGZ BANK they will use the blend of expert forecasting and nominal group technique. As line managers exactly know what will be the future requirements for their departments, they will be very beneficial in assessing the needs but they could not be entirely relied on. A panel of expert will work on their suggestions and then endorse or reject their advice. This double check will ensure correct forecast that can be helpful in achieving the organization's objective in a better way. This method will be excellent for specialized and important positions. The blend of

these techniques will also help in achieving the long run need for human resource and thus help in achieving strategic goals for the organization. For this the organization will be using expert forecast using the line managers, and nominal group techniques while using the panel of experts for forecasting their need.

EXTRAPOLATION AND INDEXATION

For helping the managers in casual, expert forecast and nominal group technique forecast extrapolation and indexation

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31ST, MAY 2001techniques will be used. Extrapolation and indexation techniques are basically trend projection forecast. Extrapolation involves extending past rate of changes into the future. While indexation is a method of estimating future employment need by measuring employment growth against a particular index. Both these techniques will help the manager in forecasting with the idea and base to work on. With these techniques they will be in a better position and make better judgment of the future need of the organization.

SUPPLY OF HUMAN RESOURCE

Now we have come to know the future employment need through the staffing table. We have to evaluate the source of the supply of human resource. In case of AGZ BANK like all other organizations human resource may be available from the internal as well from the external supply.

ESTIMATES OF INTERNAL SUPPLY

To estimate the supply of human resource from within the organization human resource audit is done. In AGZ BANK THEY are planning to do human resource audit to gain knowledge of the quality of human resource available within the organization. Human resource audit also help to find out the employees ability and potential and the training and skill required for the career development.

Human resource audit done for non-managers are called skilled inventory, while the audit for managers are called management inventories.

Through assessing the internal human resources it would be easy to judge that what type of the employees are present with in the organization and what type are to be needed.

Hence through the Planning techniques, as stated by the HR department head Mr. Arshad Abbasi in his draft and mentioned above in my report, work force for the future can be maintained and a better Human Resources Department can be created for HABIB BANK AG ZURICH.

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CONCLUSIONHABIB BANK AG ZURCH is a foreign Bank which seems to be working in a good and surviving condition in this country as because many of the private banks has been shutdown due internal problems and due to dreadful cash flow trouble. HABIB BANK AG ZURICH specializes in the following products (Banking related) Deposit products, Lending product, investment Banking, Correspondent product and others which include Remittance / Transfer of Funds etc.Since all these products involves customer relationship so the HRM department of HABIB BANK AGZ is of the most important asset to it in order to continue smooth banking. The Human

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31ST, MAY 2001resources is the recruitment, selection, and training of staff, and efforts to involve them in the company. The Human Resources Department of AGZ is doing an excellent job and has maintained a well-established staff.Due to certain reason as mentioned above in the report the HRM department is likely to have a lack of personnel in the future and in order to overcome this task the manager of AGZ bank has planned a draft which is indeed a marvelous work and have develop some forecasting techniques to avoid future disasters within HRM department.It was indeed a learning experience to visit HABIB BANK AG ZURICH and to gain knowledge about HUMAN RESOURSES SYSTEM and to meet intellectual people at their premises.

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Documents

Hrm Ag Zurich Bank