The document provides an overview of Habib Bank Limited (HBL), Pakistan's largest private bank. It discusses HBL's history since being established in 1941, its vision, mission and values. It also describes HBL's management functions of planning, organizing, leading and controlling. A SWOT analysis is presented and the main problems and recommendations for HBL are discussed. The conclusion states that with proper attention to customers, HBL has the potential to become the leading bank in Pakistan.

2. Principle of
Management

3. Presented To:
Dr. Sadia Shaheen
Hassan Ishaq (19115)
Arslan Sadiq (19119)
Sufyan Anwar (19117)
Presented By:

4. Hassan Ishaq
19115

5. Introduction
 HBL was the primary banking company established in
West Pakistan in 1947.
 Over the years, HBL maintained its position because the
largest non-public sector bank with over 1750 branches
and 2000 ATMs globally.
 The Government of Pakistan privatized HBL in 2004.
 AKFED acquired 51% of the bank shareholding and
internal control.
 The remaining 41.5% property by the govt of Pakistan
was divested in April 2015.

6. History
 Originally established in 1941.
 HBL enraptured its operations to Islamic Republic of
Pakistan in 1947 at the request of Muhammad Ali Jinnah.
 The bank initial international branch opened in Colombo,
Sri Lanka in 1951.
 Habib Bank Plaza was completed in 1972, the year that
additionally marked the commemoration of HBL twenty
fifth anniversary.
 International operations of HBL currently operates in over
twenty countries across four continents.

7. Vision Statement
“Enabling people to
advance with
confidence and
success.”

8. Mission
Statement
“To make our investor(s)
prosper, our staff excel
and to create value for
our stake holders.”

9. Values of HBL
HBL’s values are primarily based
upon the 5 basic principles that
outline our culture and are
brought to life in our perspective
and behavior.
 Excellence.
 Integrity.
 Customer Focus.
 Meritocracy.
 Progressiveness.

10. Arslan Sadiq
19119

11. Departments
 Bills and remittances department.
 Credit department.
 Foreign exchange department.
 Cash department.

12. Management Functions
Management involves coordinating and overseeing the work
activities of others, so their activities are completed efficiently
and effectively.
The management process involves four functions to describe
manager’s work:
 Planning.
 Organizing.
 Leading.
 Controlling.

13. Planning
“Setting goals,
establishing strategies
and developing plans
to coordinate activities
is known as Planning’’

14. Objectives of
HBL
 Planning is the first and main managerial
role of a bank to perform.
 The long-term objective of Habib Bank Ltd is
to become top priority to the customers in
banking sector and finance. To achieve their
long-term objective, they are giving as much
facilities to their employees and customers
as they can.
 The short-term objective of HBL is to cope
well with the challenges of banking market
and perform well not only in local market but
also international market.

15. Planning in Departments
 There are approximately 8-10 departments in every HBL branch
and each branch works on different plans and strategies.
 Decision making is highly centralized because all the decisions and
plans are made at the top level of management.
 For internal working there is case to case planning by manager with
the coordination with employees.
 Branch also make extra plan for contingency conditions.
 Strategies are made to attract customers.

16. Organizing
“Organizing is arranging and structuring
work to accomplish the organization’s
goals’’

17. Organizing in HBL
 Managers are responsible for arranging and structuring work that
employees do to accomplish the organization’s goals.
 In HBL there is a chain of reporting.
 Division of labor.
 Operational workers for public dealing.
 HRM (Human Resource Manager) department for management.
 Work is allotted as per skills.
 No autonomy is provided to HBL staff.
 There is additionally a high degree of interaction among department
managers.

18. Leading
“Management function that
involves working with and
through people to
accomplish the
organization’s goals’’

19. Good Leader
A good leader always
motivates his team and
leads them towards
success.
A good leader always gives
credit of doing good work to
the employee or team as
per to encourage them so
that they work with more
motivation to achieve the
company’s goals.

20. Leading in HBL
 In HBL the leaders handle unmotivated
employees with strictness.
 HBL have team leadership styles.
 Leader gives guideline to workers the
way to work with efficiency.
 Staff is intended by cash Rewards and
Promotion.
 Staff is updated with new policies
through:
i. Line of work conferences.
ii. Signing circular.
iii. Telling orally.

21. Sufyan Anwar
19117

22. Controlling
“Management function that
involves monitoring,
comparing and correcting
the work performance is
known as Controlling’’

23. Controlling in HBL
 In Habib Bank Ltd. the activities of workers ought to be controlled with
the standards of the work appointed to them.
 In Habib Bank the customers are main priority to be controlled.
 Turnover of the staff must be controlled. To regulate the turnover HBL is
giving additional facilities to the staff in form of Job security, incentives,
bonuses, etc.
 Task is split in quarters.
 Evaluation of completion of Task on monthly bases.
 Conflicts are settled through coordination and communication.

24. SWOT Analysis

25. Strengths
 HBL has a good reputation in
the market.
 The management of the
bank believes in client
targeted banking instead of
product oriented banking.
 It’s the largest branch
network among non-public
banks of Pakistan.
 The merchandise of HBL are
also strength of it.
 HBL has the potential to
encounter the competitive
surroundings within the
market.

26. Weaknesses
 Lack of communication between bank and customers regarding
terms and conditions of merchandise and services.
 Staff at branch level doesn’t seem to be properly motivated to work
by heart.
 Most of the staff lack managerial training as they are not properly
educated.
 HBL is lacking client feedback.
 It has poor IT system.
 All branches are not online.
 Low rate of return on deposits.

27. Opportunities
 It has strong potential for growth.
 Use of latest advertising techniques.
 An oversized quantity of foreign
investment is attracted.
 HBL differentiate and increase its
deposit by providing enticing rate of
return on deposits.
 HBL provides good opportunities for
the employees in developing their
careers.
 Islamic banking and E-banking facility
could be a growing market section
that provides enticing opportunities.

28. Threats
 Shortage of trained and specialized
employees at lower executive and
officer levels.
 Facing a lot of competition by foreign
banks within the market.
 Loss of confidence of overseas
customers due to freezing accounts.
 Fees charged by the bank on the varied
services it provides are extraordinarily
high.
 Other private commercial banks with
sound profitability is additionally a threat
to HBL.

29. Main Problems
 There is noticeable communication gap between higher level
management and operational employees.
 There is additionally over staffing.
 There is large distinction in approaches of old employees & young
employees.
 Experienced employees are demotivated and dissatisfied because of
following 2 reasons:
o Salaries haven't been revised from last ten years.
o Experienced Habibians are neither glad by the privatization of bank
nor they were taken into confidence at that times.

30. Recommendations
 Employees coaching programs should be
introduce on continuous basis.
 Mismanagement of resources should be
avoided.
 Bank should facilitate the society by
providing interest free loans to the talented
students.
 Banks totally different schemes must be
conveyed to the targeted customers.
 Fresh graduates should be recruited.
 Improves friendly relations are required
between the top and middle management.

31. Conclusion
“HBL is clearly the primary selection of everybody who
believes in qualitative approach of banking an
environment of extremely responsible folks. Bank is
enjoying a healthy market share and taste of excellent
standing in terms of its operative features support. HBL is
clearly the most effective bank operating in Pakistan.
Corporate and business functions are distinguished
options of HBL experiencing an honest name and cheap
price with reference to prevailing market price with
assurance of satisfaction and support. HBL has
additional customers as compare to other banks, if they
give correct attention to each client then in few years it’ll
be the leading bank of the Pakistan.”