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Organizational Behavior

Final Project
Bank AL HABIB

Name Registration No

UNIVERSITY OF
CENTRAL
PUNJAB

Assignment: 1

Submitted To: Maam Aniqa

Submission Date: January 26, 2017
Submitted Dated: January 26, 2017

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Acknowledgement

First of all, we would like to thanks Allah the Almighty, for having made all promising by giving
us strength and courage to do this effort.
Our deepest gratefulness to Prof. Aniqa our supervisor for her reinforcement and supervision and
serenity she established during our study.
This project would not have been possible without the provision of all our group followers.
Without their help our project could not be completed we are very much thanking full to them.

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Table of Contents
Executive Summary ....................................................................................................................................................... 4
History ........................................................................................................................................................................... 5
Mission .......................................................................................................................................................................... 5
Vision ............................................................................................................................................................................ 5
Objectives ...................................................................................................................................................................... 5
Products/Services........................................................................................................................................................... 5
Organizational Structure.6

Majors Competitors7

Mintzberg Roles.7

Individual Level..8

Group Level......11

Organizational Level12

Recommendations13

Importance of OB concepts, you find for the organization..15

Conclusion16

External References..16

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Executive Summary

This report indorses how the Bank Al Habib formulate an organizational goals in there
organization. We focus completely on products/services, organizational structures, major
competitors. We also concluded, three different stages of organizational behavior i.e. Individual
Level, Group Level, and Organizational Level. In end, we also established Organizational
Behavior concepts with conclusion.

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History
The Bank AL Habib Limited, Pakistan, is functioned by Dawood Habib group of companies.
The bank's head office is located in Multan, but the main office is situated in Karachi, Sindh.
Currently, the bank maintains a network of 505 branches and offshore banking units in Bahrain,
Turkey. Habib Group's participation in banking services from 1930s. They also started HBL
Pakistan, which was state-owned in 1971 and still is largest banks in Pakistan.
Since 2002 it has been jointly owned by the government and by Agha Khan Fund for Economic
Development. After the privatization announced in 1991 by the Pakistani Government, Habib
Group were the first to be granted authorization to start a private bank, which called as
Bank AL Habib Limited.

Mission Statement
To make banking safe, simple and pleasant

Vision
To be our customers most convenient and trusted bank.

Objectives
To satisfy the aging population issues by giving them out of the box services and at very lower
rate to fulfill their needs
Targeting the savings of retired people, giving them good returns and secure most importantly-
as retired people want security of their funds the most.

Products Services
As defined by State Bank of Pakistan (Small Enterprises)
A small enterprises (SE) will be a administrator or a partnership concerns which encounters the
following constraints, as per new SBP PR, are as follows:
Number of Employees up to 20. Annual Sales Turnover up to Rs.75 Million.
As defined by State Bank of Pakistan (Medium Enterprises)
Medium Enterprises (ME) means a unit, preferably not a public limited company which
encounters the following limits, as per new SBP PR, are as follows:
Number of Employees from 21 to 250 (Manufacturing & Services MEs). Number of Employees
from 21 to 50 (Trading MEs). Annual Sales Turnover up to Rs.400 Million.
Recognizing the economic and observing importance of the Small Enterprises & Medium
Enterprises, the facts and figures around the world disclose that being engine of economic

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growth, SE & ME sectors are considered to be the hub of employment creation and supply
mobilization activities. The SME Division was established with an aim to provide SE & ME
Banking and undertakes to deliberately serve this important segment. BAHL believes in
simplification of procedure and reduction in turnaround time and quality services.
We offer the following facilities to the customers:
Working Capital Financing.
Procurement of Inventory.
Receivable Financing.
Procurement of Machinery.
Expansion of production facilities.
BMR.
Import / Export.
Guarantees.
Auto Leasing.

Organizational Structure

Name Designation Occupation

Mr. Abbas D. Habib Chairman Banker

Mr. Ali Raza D. Habib Director Businessman

Mr. Anwar Haji Karim Director Industrialist

Mr. Murtaza H. Habib Director Industrialist

Mr. Qumail R. Habib Executive Director Banker

Syed Mazhar Abbas Director Former Banker

Mr. Shahid Ghaffar Director Managing Director - NIT

Mr. Safar Ali Lakhani Director Former President,

Soneri Bank Limited

Syed Hasan Ali Bukhari Director Former MD & CEO -

Mackinnon Mackenzie &
Co. of Pakistan/
Corporate Advisor

Mr. Arshad Nasar Director Former Chairman / CEO

- Oil & Gas
Development Co. Ltd.
Former Country
Chairman & MD -
Chevron Pakistan

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Chief Executive
Name Designation Occupation

Mr. Mansoor Ali Khan Chief Executive Banker

Company Secretary

Name Designation Occupation

Mr. Mohammad Taqi Company Secretary Banker

Lakhani

Major Competitors
Bank Al Habib is a strongest in competitive world. Among it, there competitors are
National Bank of Pakistan (NBP)
United Bank of Pakistan (UBL)
Muslim Commercial Bank Limited (MCBL)
Allied Bank Limited (ABL)
Bank Alfalah Limited (BAL)

Mintzberg Managerial Roles

1) Monitor:
In this role, you regularly seek out data related to your organization and industry, looking for
relevant changes in the environment. You also observer your team, in terms of both their
efficiency, and their happiness. As been asked, he said that whenever he allocate special tasks to
CROs (Customer relationship officers), he always group them according to their capabilities, and
so together they can perform the job more efficiently. He also said, that he gives the ease to his
team, to always communicate with him whenever theyre having some major difficulty related to
their office environment, so he can help them if possible. He also shared is experience that,
whenever he is presented with monthly reports, he mostly shares the vital information with the
branch, so they can know where they all stand.

2) Disturbance Handler:
When an organization or team hits an unexpected obstruction, it's the manager who must take
charge. You also need to help mediate disputes within it. Once there was a rude customer having
an argument with one of his Relationship officer, and the situation was getting out of hands, as
he was very hyper and was just shouting about not getting his problem handled effectively,
where the problem was solved from their end, so thats the point where he stepped in, and

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handled the situation by inviting the customer to his office and offering him special care for his
matter, and he managed to make him calm.

3) Entrepreneur
Entrepreneur is as a manager you create and control change within the organization. This means
solving problems generating new ideas and implementing them. Like the manager whos having
interview with us is having problems with their system in bank and they are facing problems in
this regard, so for the solution he have to take decisions for solving this setback.

As no organization is perfect, there are many OB related problems in Bank Al Habib as well.
These problems relate to all levels: Individual, group, and organizational level. Bank Al Habib is
trying to overcome such problem causing situations but it is a part of the process, it can be done
overnight. Sometimes there are problems of biasness in performance appraisal as it is an
important issue in most of the organizations, and it causes demotivation in employees. Then
politics in an organization is also a common problem that can be witnessed in bank Habib as
well, as people strive to get the power and take things in their own hands. Then there are other
major and minor conflicts as well. But if there are some problems, there are so many factors as
well on which Bank Al Habib is already working and making a strong impact in its employees
and giving a strong competition to the competitors.

Individual Level:
OB model talks about 3 levels: Individual, group and organizational level, and also about their
inputs, processes and outputs. So on individual level there are certain problems in the Input for
the individuals which ultimately causes issues in process and then in outcomes. But these
problems can be addressed and can be overcome. So of the major individual issues are discussed
below:

Diversity:
Diversity is the input at the individual level. And as organizations are becoming more global, the
problem of diversity is also increasing. In Bank Al Habib, there are people working that belongs
to different religions, so for example, when the Eid bonuses are given to Muslim employees, the
employees belongs to other religion create issues that why Holi and other such bonuses are not
given. Then there are caste related diversity issues as well, sometimes the manager shows
biasness towards the people of the same caste, hence making other employees feel discriminated.
Sometimes some sub groups are also being made in the branch of the bank unofficially on the
bases of castes and those people then act unitedly and according to their own sense.

Another age diversity related problem can also be seen in Bank AL Habib is that for example,
there is a branch manager, whose age is 58 and he will retire at the age of 60, but in the time he
is in the organization, his work style is different from the other staff, he is bit slow in processing

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work due to age factor, it creates problems for the employees to coordinate with him and bank
also doesnt take any action related to such minor issues.

Job Satisfaction:
There are some job satisfaction related issues in the organization as well, that arise due to many
different reasons. In the interview, the manager told us that sometimes undue workload reduces
the job satisfaction in the branch, for example, if a standard transaction time is 2 minute, and the
manager asks the teller to reduce it to only 1 minute creates unnecessary pressure on the teller
and hence reduction in job satisfaction, as now he has to work double in the same time.

Biasness in performance appraisal is also a major issue in many organizations and same in Bank
Al Habib. This biasness is based on many factors, like caste, favoritism, personal choice,
personal relation etc. Nothing reduces the job satisfaction as the unfair performance appraisal, as
the employee has nothing to sincerely work for, and this issue needs to be addressed. Then other
kind of favoritism also causes reduced job satisfaction, these are also based on different factors
like caste and personal relation, and on the basis of this favoritism, sometimes some extra favors
are given to some, and not to the others, and it demotivates the employees.

Turnover Rate:
Bank Al Habib is efficient in employee retention, and turnover rate is usually very low. Because
Bank Al Habib gives its employees attractive salary packages, then their bonuses are also very
attractive and it has a strong footing in the market. Higher management is usually cooperative,
and employees work distribution is mostly efficient and fair. Specially in banking sector,
turnover rates remain usually low, and employees only changes the organization in the case of
promotion.

Absenteeism Rate:
Bank AL Habib gives

15 yearly paid leaves

10 sick leaves
Maternity leaves for females
Festival holidays
Other bank holidays
Because of so many official leaves, the absenteeism rate remains low, and organization doesnt
have to face worse absenteeism cases.

Organizational Citizenship behavior:

Organizational Citizenship Behavior is not very common in Pakistani culture, especially in
banking sector, and that is due to many reasons, for instance, in a bank, every employee has their
own usage and posting rights, rights to use the software, an inputter cannot use the rights of the

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authorizer, hence it is not possible to help each other in their tasks. So it is better to avoid that in
a financial institution. But as far as other little gesture of OCB are concerned, these can be
witnessed by everyone, especially new employees as they try to make their way in the
organization.

Perceived Organizational Support:

Perceived organizational Support is strong at bank Al Habib, employees think that the bank takes
care of their wellbeing. And this can also be checked by the turnover rate, as the turnover rate is
low, it means employees are usually satisfied with the job. Then some other examples can also
be taken, like when an employee asks for a leave to meet and take care of his sick father,
manager always try to cooperate and grant him leave so he can also take care of his other
matters.

Then on the bases of good performance; incentives of cash rewards, holidays, and conventions,
out of country and out of city trips are also arranged, especially on the sale of insurance. And all
of these factors contribute towards high perceived organizational support for employees.

Factors affecting moods and emotions:

There are many points that can be discussed here which affects the moods and emotions of the
employees in Bank Al Habib. For example, if manager is having a bad mood for any reason, he
will show anger towards the officers, which will affect their emotions and make them feel bad,
and managers usually scold the officers and use undue ordering to his employees to work better
even if they are already working on their task. Then some customer can also contribute towards
affecting the emotions of the employees by talking harshly and by using abusive language, those
situations disturbs the overall environment of the bank. But at the same time, customers positive
feedback also lifts the moods of the employees.

Sometimes it also happens that the manager ask to receive a report in hour, but the employee
delays it for some reasons affects the emotions of the manager, and also of the employee when
he reprimands him for that. Sometime some internal conflicts between the staff also creates
disturbance and as a result affects the emotions and moods of the employees.

Personality Job-Fit:
The personality Job-Fit theory doesnt apply in Al Habib bank, as the hiring is mostly based on
the qualification bases, and no personality tests are conducted to use the personality job fit
theory. Intercession is also a common practice while hiring an employee, so it usually doesnt
matter for them that what is the personality of the person, if he is qualified for the job, he can be
hired for the post. So there is no use of personality fit theory here and it is not applicable in this
situation.

Motivation:

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Good and healthy environment is given to the employees in Bank AL Habib, so employees can
work safely in a good manner, security is also very good in the bank, so it keeps the employees
motivated that bank also cares for their employees. Another factor that keeps the employees
motivated in Bank Al Habib is the incentive plans, and bonus that are given on certain occasions,
and especially on performance. Then some festive and annual bonuses are also given.
Performance appraisal sometimes reduces the motivation of the employees as it is often
perceived as biased by the employees, and it can be the best motivator for the workers if it is
used fine in a fair way.

Then to keep the employees motivated, higher management gives special acknowledgements to
the employee who is working hard enough and is in the notice of the manager, then manager
mentions his name and achievement to the higher management and then he gets the appreciation.
And on the other side of the coin, on receiving of the negative feedback employees gets
punishment as well, which sometimes able to motivate them and sometimes it makes them even
more demotivated.

Another effective practice to keep the employees motivated in Al Habib bank is that they arrange
some special weeks and days, like Customer week, Punctuality week, and performance week,
and in these special weeks the performance of the staff is specially looked by the manager, and
on the best performance bases, employee gets acknowledgement letters, and even manager takes
them to the dinner as an incentive. For example in performance week, how quickly a teller is
attending customers, and if his performance is good, he will be rewarded and it creates
motivation for the employees.

Group Level:
They should allow its workforce to work together on certain task more often, assign them with
activities so they get the chance to communicate among one another and decrease their
communication gaps and get to learn how to work together as a team which for any organization
is very important.
Each and every member should have equal chance to get to the top even if its a group work then
all the members should be equally rewarded for it despite only the one who was leading it.

Group Behaviours:
Groups are composed of individuals. Hence, the group behavior means behavior of its members.
In practice, each member of the group affects the behavior of other members and, in turn, is also
affected by them. The nature and patterns of reinforcement the members receive through their
interaction with one another is also determined by the group itself. This is because the behavior
of individual members in a group becomes different than their behavior outside the group
situation. Therefore, while studying group behavior, the factors that should be understood are
group norms, group cohesion, group role, group conflict and group decision-making. If you are
working in the group, you cannot take the decisions on your own because you must discuss it
with the group members and maybe there will be need to improvements in your decisions just

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like we take the organization Bank Al Habib and if a new task come in an organization and it
will be only performed in the group form so the seniors make the groups and give the deadline to
complete the task till this date. Now juniors and seniors are working in the same group so
obviously, there will be conflicts in the group work. In the groups, you are going to interact with
every type of people like some are very chill and relax they also take the work so easy so if the
any senior is or elder in age in the group so it will cause them a problem because they work with
responsibility. Group works can be only done in a polite way and you must watch your tone
before saying anything to anyone and listen to every member of the group and then come up with
the idea and discuss it with the group this the behavior or work in the group. In the Bank AL
Habib they are facing the issue which is related to the age because in they only hire male persons
and seniors are like everyone listen to them but in every organizations, there are employees like
they want to give new ideas for the betterment of the firm but the seniors wont listen and if they
work in a group with the senior so they ignore them and give them orders you have to do this.

Teamwork:
Teamwork is important due to the problem-solving synergy gained from
multiple minds working on a solution. When one person works on a specific company problem,
that person only has her personal experience and knowledge from which to pull for solutions.
Using teamwork, team members pool their collective ideas together to generate unique ideas for
dealing with problems. Just like Bank AL Habib launch the new product but they are facing the
problems to promote it so they make the team to promote the product and first everyone going to
analyze the problem and then discuss it with the group and obviously, everyone has its own point
of view so when they share the problems that what are they thinking so then they will come up
with a better solution.

Communication Problems:
Teamwork is the backbone of effective communication
within a company. When employees work as individuals or independently on projects, they may
not readily share knowledge or new information. This lack of communication increases the time
it takes to complete projects, tasks or the development of solutions. Teamwork promotes
conversation between employees regarding the task at hand, possibly preventing employees from
working in opposite directions. For example, if one employee does not communicate that one
method of addressing a problem is a dead end, and another employee is still trying to use that
method, productivity is lowered. Like I discussed it above that if they dont share the problems
for the promotion that the firm is facing so then it will cause the problems for the firm because
there is a communication gap between the teammates.

Conflicts:
When you are working in a group so you have conflicts like someone does not
like your opinions. Bank Al Habib is working on the new product and they make a team for the
promotion of the product and in the team someone is saying that we dont need flyers and
brushers and other one is saying we need them so this will be a conflict and if they didnt resolve

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it so it will cause the problem for the promotion of the product so when you are working in a
group you should have to consider the ideas of every member and avoid the conflicts because it
will only create the problems for the firm.

Power and Politics:

If someone is the head of the team and then he will be trying his best
to perform better so he can make the seniors happy so then he will be promoted but on the other
had everyone is doing their best so he will use his power to divert the others and make some
political decisions which cause the problems for the team mates so in the firm there is a this type
of person but seniors are not noticing this.

Organization level
Organizational Culture:
The Culture of Bank Al Habib is very friendly because they
accommodate with each other like when we interview the HR manager so he tells us that they
accommodate with each other and if someone is facing problem so then he can ask to their
seniors for help and they will guide him.

HR polices:
Our Human Resources (HR) policy is based on raising our own leaders from
within our Bank. We make substantial investments in personal development and leadership. We
believe that leaders, who can unveil the potentials of Bank Al Habib team members and provide
them with an efficient and productive environment, are the key to success. Hence, we place great
emphasis on leadership development programs.

Practices:
HR manager told us that the practices are weekly basis and monthly basis these
practices are also known as training as well. Bank will provide the knowledge about the new
products they are launching in the market so then you can deliver the information to the
customers. For example, they are launching the new type of account so then they first tell about
the account to the staff and tell them how they have to convince the customers.

Change Management:
Bank Al Habib has an effective change management process to
ensure that they properly analyze and respond to the compliance implications of regulatory or
product changes. Changes to evaluate may come from an external source, such as new
compliance rules and regulations, or internally, such as a new product or service or changes to
existing products or services. Recent examinations identified violations that occurred because of
regulatory or product changes.

Recommendation for solving those problems

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Individuals
Habib bank should respect all religions and casts equally. As they work together it does not mean
that barriers have been broken down. Employees should be allowed to show their individualities
for example if a person is an Indian and the Holy is to be tomorrow on the working day but
he/she should be granted holiday.
Habib bank should ask all employees to meet the required standards of the organization and
perform in the best possible way while setting some criteria for all the different groups. No
excuses to be allowed to any employee, equally judged on specific disciplines and job
performance criteria.
Habib bank should make sure that all the policies of hiring till promotions and a raise in pay all
are based on the employees performance. They should strictly avoid any kind of favoritism on
the bases of cast, religion or any sort of biasness should not be there.
Habib bank should be more focused to the quality of work rather focusing on the age and the
quick response because with more age comes more experience
They should encourage its employees to report any sort of discrimination behavior and take these
complaints seriously so it can be resolved as soon as possible.
Training could be provided to its workforce in order to stay unbiased.
When biasness would be taken care of it would lead to the workforce being motivated also
because before there was no incentive to work hard as employees were aware who will get the
reward and the bonuses for example the ones who are the mangers choice or ones of his cast and
religion but with no biased managers the existing workforce would be motivated enough to work
efficiently.

Group Level:
They should allow its workforce to work together on certain task more often, assign them with
activities so they get the chance to communicate among one another and decrease their
communication gaps and get to learn how to work together as a team which for any organization
is very important.
Each and every member should have equal chance to get to the top even if its a group work then
all the members should be equally rewarded for it despite only the one who was leading it.

Organization level
At organization level Habib bank is doing well at its own that there are very less or no room for
suggestion as we spoke with their representatives they told us briefly about the organizational
levels and how they are acting upon it in an effective manner which is already discussed in detail
earlier.

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Importance of OB concepts, you find for the organization:

Employee satisfaction is an important winner citron for all the employees in the formation of the
institute. Worker compensation have a large impact on organization. Organization should
compensate their employees because employees are assets of organization if organization
provide favor or compensation to their employees. Then employee will loyal with the bank and
they also have a big role in the profitability of bank. As motivation is one of the best style to
increase the productivity of the employees. Because motivation plays important role in the
productivity and profitability of the bank. As operation manager is the bank bone of the bank.
With the help of bank book which was provided by bank it will also help employees to create
more opportunities. According to two-factor theory, there are motivational and through which
they will learn about new skills which will help them to learn about them and also trained them.
When bank offer new account for their employees as in the past Bank al Habib introduce new
accounts for that purpose first they should trained their employees like they trained them their
new employees about their new service through which they will add value in their bank and
attract customers.

Reinforcement and hygiene factors which are not present in the organization it will create a bad
impression on the attitudes of employees because it will create dissatisfaction among the
employees. Elimination of dissatisfaction from job satisfaction is very essential part. If
employees are not satisfied from their job it will create bad impression like absenteeism rate
employee will increase. Employee engagement will reduce when they are not satisfied with
attitude of mangers in bank, as underpayment lead to decreased performance and low
productivity. Job Characteristic Model (JCM) has been used to determine the level of employee
satisfaction. Job Characteristic Model (JCM) focus skill variety, task identity, task significance,
autonomy, and feedback, which in turn impact three key psychological experienced importance
of the for the work, and thought of results. These psychological states then influence job
satisfaction. As bank, will eliminate the dissatisfaction from their individual employees like they
gave appraisals, bonuses and letter of appreciation.

Employee satisfaction:
Employee satisfaction is obligatory to the success of any organization. As employee satisfaction
is very important in any organization. Through employee satisfaction we will measure that how
employees are engage with their organization or committed with their organization. While in
banking sector as assistant manager will satisfied his employees through different incentives like
he should provide their employees different allowances like annual leaves, bonuses, and
appraisals certificate of achievement. If employees are satisfied with the organization, they will
give their best outcome. As assistant manager, will gave their employees open appreciation
through which they also have motivation that their assistant manager motivate him and it will
help them to increase their morale. Profitability:

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Employees plays very important role in profitability of making any organization. Hiring the right
person for the right time will plays the very important role in profitability as hiring the candidate
in hiring the wrong person for the job it was the worst decision because when you hired the
wrong person for the job. A bad employee will set you rachis months, if not years, and a good
employee will pay for themselves tenfold. As in bank employees are assets of their organization
because they will help their managers to achieve their targets. As they also have very important
role in profitability of the bank.

Efficiency:
Efficiency signifies a level of caring out that describes a process that uses the lowest amount of
inputs to create the greatest amount of turnover by the employees in bank. Efficiency relates to
the use of all inputs in producing any given turn out including personal time and energy. While
achieving their tasks different zone of bank has different targets. As operation manager has set
the standard that all the employees have to attract their customers for getting higher deposit in
bank. This will indicate that how their employees are efficiency doing their work. There should
be the positive attitude of manager and the employees in the bank as in Bank al Habib their
culture was very friendly they all help each other in achieving their tasks. When there is friendly
environment in the organization then all the employees will satisfied with their manager and they
will add different values to achieve their objectives and do their work in efficiency manner.

Effectiveness:
Effectiveness of employees is that into how many months they achieve their targets. As
operation manager of bank al Habib has set target they have minimum resources to achieve their
targets so now its should be the responsibility of the employees that they have minimum
resources they have to achieve.

Conclusion:
Bank al Habib is one of the best commercial bank because they provide their best facilities to
their customers. As their staff members are very helpful with their customers because their
manager compensate with their employees they give their employees different allowances which
will help them to motivate in their work. There are less chances of favoritism in bank al Habib
somehow there are some biasness in appraisals as it should be eliminate because these type of
things will demotivate the employee. While introducing their new service in their bank first they
trained their employees.
Recently bank al Habib start new account Zamanat account for that first their operation manager
trained them about their new services. While talking about top level hierarchy has a positive
attitude with their employees as they take care about their bonuses they gave their bonuses on
time and take care of other different things. They also gave letter of appreciation through which
their employees get motivate and their level of morale will increase.

External References
https://www.emis.com/php/company-profile/PK/Bank_Al_Habib_Limited_en_2379939.html

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https://en.wikipedia.org/wiki/Bank_Al_Habib
https://www.bankalhabib.com/

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