Brief History Of HBL Commerce Essay

Brief History Of HBL Commerce Essay Stragtegic Human Resource Management helps an organization achieve productivity and effectiveness, by sharing the overall vision of the organization, sharing goals and objectives, and making sure that Human Resource is not just a department, but the whole organization speaks of HR as the core division, which means that organization is employee centered. Strategic HR changed a number of things in HBL. It updated the way plans were made, shifting to strategic plans, from a one-man show to bringing everybody on board, encouraging idea generation and sharing proposals, different departments sharing their plans of what to look for in the coming year and democratic decision making by appointing a Strategic Planning Division and appointing member from the Board of Directors that goes through each plan and then the CEO communicating the approved plan to the departmental heads. By this, the plan became not just an objective, but more of a bible. At HBL, after the privatization, a number of i nitiatives were taken, from right sizing and getting rid of lethargic employees, to introducing golden handshake schemes, from moving to performance management system to inducting young blood that brings in creative ideas. Concepts like employee engagement and job rotation became part of the policy, organization-wide rewards programs were introduced. An inevitable change in culture was also accomplished, it from the seniority based to performance based culture. Overall structure of the organization was also made flatter, removing additional levels and bureaucracy. INTRODUCTION TO HBL It is the prime Bank in country established in 1941 having a registered head office in Karachi. It was nationalized in 1974, but recently on 26th February 2004 it has been privatized by Government of Pakistan and is taken over by Aga Khan Fund for Economic Development (AKFED). They acquired 51 percent of shares of HBL. It is one of the largest Banks of Pakistan with 1439 branches, having total assets o f Rs. 1,139,554,000, 5 million total number of customers helping in generating Rs 13 million profit currently. Brief History of HBL HBL established operations in Pakistan in 1947 and moved its head office to Karachi. Our 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 December 29, 2003 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 investme nt 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. BUSINESS DIVISIONS AT HBL HBL has a wide array of customers, belonging to a wide range of business divisions, from individuals to corporate, from Islamic banking to commercial banking. They are divided into three main categories, as follows: