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CHAPTER 1

INTRODUCTION TO THE REPORT

Background of the Study

The main focus of this study is Employee Training and Development at the Bank

Al-Habib. The training and development function of an organization is often responsible

for helping employees to maximize their potential. Training and development helps in

building more efficient, effective and highly motivated team, which enhances the

companys image and gives it a competitive edge over other banks.

Induction training is important as it enables a new recruit to become productive as

quickly as possible. It can avoid costly mistakes by recruits not knowing the procedures

or techniques of their new jobs. The length of induction training will vary from job to job

and will depend on the complexity of the job, the size of the business and the level or

position of the job within the business.

The following areas may be included in induction training:

Learning about the duties of the job

Meeting new colleagues

Seeing the layout the premises

Learning the values and aims of the business

Learning about the internal workings and policies of the business

Training is also referred as aid to employee development. The purpose of training is to

ensure that the workers are properly taught the new methods of doing the jobs assigned to

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them .The scope training depends upon what types of employees are trained. What

factors that decide for the progress of employee in the enterprise, his/her high degree

intelligence in his work it can be measured on his performances in Schools College or

university. Secondly he/she should have capability to learn new technology and apply

what he has learnt during his training period.

Employee training and developing helps to increase productivity, reduce

employee turnover, and increase efficiency resulting in financial gains and decrease need

for supervision. Employees frequently develop a greater sense of self-worth, dignity and

well being as they become more valuable to the firm and society.

Training plays vital role for the development of the enterprise. Training is looked upon

either as a piece decorations or as a fire fighting equipment to be used only in the casedire need .It brings out new talents who are capable of having good basic knowledge of

the enterprise and its objectives. Hence the enterprise would get profited from the

employees as well as them also get attractive benefits from the concern for their

performance by providing incentives, bonus, allowances and promotions. This would

help to bring the workers to a mutual understanding within them and with the

management hence the growth of the enterprise will a steady one.

The Bank Al Habib recognizes the need to enhance productivity, performance and valueof its employees through continued training and education. This is necessary for the Bank

in order to achieve and maintain a leading position in the industry through a pool of its

skilled and motivated employees. The Banks training and development programs aim to

improve and enhance employee performance through continued learning and skill

development. It also enhances their skills and knowledge of banking practices.

1.2 Purpose of the Study

The main purpose of this study is to analyze Training and Development of

Employees at the Bank Al-Habib and the effects of Training and development on

employees performance. Employee training and development includes new employee

orientation, employee training, employee development and organization development.

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But this study is mainly focused on new employee orientation, training and development.

Training is an integral part of Human Resource Development. It helps officers at the

Bank to plan and choose their career path.

1.3 Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an

employee or group of employees, e.g.

When a performance appraisal indicates performance improvement is needed To

"benchmark" the status of improvement so far in a performance improvement

effort

As part of an overall professional development program

As part of succession planning to help an employee be eligible for a planned

change in role in the organization

To "pilot", or test, the operation of a new performance management system

To train about a specific topic.

1.4 BENEFITS FROM EMPLOYEE TRAINING AND

DEVELOPMENT

There are numerous sources of online information about training and

development. Several of these sites (they're listed later on in this library) suggest

reasons for supervisors to conduct training among employees. These reasonsinclude:

Increased job satisfaction and morale among employees

Increased employee motivation

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Increased efficiencies in processes, resulting in financial gain

Increased capacity to adopt new technologies and methods

Increased innovation in strategies and products

Reduced employee turnover Enhanced company image, e.g., conducting ethics training (not a good

reason for ethics training!)

Risk management, e.g., training about sexual harassment, diversity training

Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their jobs.Training is a learning experience in that it seeks a relatively permanent change in

an individual that will improve his/her ability to properly perform on the job.

Employee development on the other hand, generally focuses on the future jobs in

the organization. As the employees job and career progresses, new skills and

abilities are required.

Scope of the Study

This report is made only on the Training and Development of Employees

at the Bank Al-Habib and the effects of Training and development on employees

performance of Peshawar region.

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Research Methodology

Data can be obtained from primary or secondary sources. Majority of the

data presented in the report is collected through primary data sources. Primary

data is collected when there is insufficient secondary data available.

The report is prepared using both primary and secondary data that includes the

following methodology tools:

Primary Data

Primary data is collected through following ways:

Interviews

Questionnaire.

Secondary Data

Secondary data is collected through following ways:

Internet Websites Books

Journals

Problem Statement

Most of the organizations do not take training and development of employees as a

critical issue. Many organizations still dont take their employees as an asset. Ifthey invest in their assets in shape of training and development, their employees

can give them better performance. So, this research is carried out to find out the

training and development at Bank Al-Habib.

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1.6.2 Theoretical Framework

Independent Dependent

1.6.3 Sample

The sample size consists of 50 (fifty) employees.

1.6.4 Instrumentation

The tool that has been used to gather data is questionnaire. After collecting information

from questionnaire, the next step is to conduct interviews of the employees. The data

collected is primary data.

1.6.5 Sampling

Sampling technique used is Convenient Sampling.

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1.6.6 Data Analysis

The data analysis has been done through:

Frequency bar Chart

1.7 Limitations of the Study

Often employees are hesitant to provide the details of their organization.

Most of the times, all the aspects of the study can not be explored due toresources and time limitation.

Lack of information about training and development of the bank as well as

no information was available about the competitors; therefore it was not

possible to carry out comparative analysis.

1.8 Justification

The training and development function of an organization is often responsible for helping

employees to maximize their potential. Training and development helps in building more

efficient, effective and highly motivated team, which enhances the companys image and

gives it a competitive edge over other banks. Many organizations still dont take their

employees as an asset. If they invest in their assets in shape of training and development,

their employees can give them better performance. The main purpose of this study is to

analyze Training and Development of Employees at the Bank Al-Habib and the effectsof Training and development on employees performance.

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CHAPTER 2

LITERATURE REVIEW

Training is essentially a learning process, in which learning opportunities are

purposefully structured. The aim of the process is to develop in the employees the

knowledge, understanding, skills, attitudes and behavior, (KUSAB) that have beendefined as necessary for the effective performance of their work and hence for the

achievement of the organizational aims and objectives by the most cost-effective means

available. 1

Training and development encompasses three main activities2: training, education, and

development. Garavan, Costine, and Heraty, of the Irish Institute of Training and

Development, note that these ideas are often considered to be synonymous. However, to

practitioners, they encompass three separate, although interrelated, activities:

Training

1 Tyson S & York A Essentials of HRM, 4th Edition P.161

2 http://en.wikipedia.org/wiki/Training_and_development

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This activity is both focussed upon, and evaluated against, the job that an

individual currently holds

Education

This activity focusses upon the jobs that an individual may potentially hold in the

future, and is evaluated against those jobs

Development

This activity focuses upon the activities that the organization employing the

individual, or that the individual is part of, may partake in the future, and is

almost impossible to evaluate.

The "stakeholders" in training and development are categorized into several classes. The

sponsors of training and development are senior managers. The clients of training anddevelopment are business planners. Line managers are responsible for coaching,

resources, and performance. The participants are those who actually undergo the

processes. The facilitators are Human Resource Management staff. And the providers are

specialists in the field. Each of these groups has its own agenda and motivations, which

sometimes conflict with the agendas and motivations of the others.

The conflicts are the best part of career consequences are those that take place

between employees and their bosses. The number one reason people leave their

jobs is conflict with their bosses. And yet, as author, workplace relationship

authority, and executive coach, Dr. John Hoover points out, "Tempting as it is,

nobody ever enhanced his or her career by making the boss look stupid. Training

an employee to get along well with authority and with people who entertain

diverse points of view is one of the best guarantees of long-term success. Talent,

knowledge, and skill alone won't compensate for a sour relationship with a

superior, peer, or customer.

Training and development may sometimes be viewed as a luxury or "necessary evil" by

senior management. In addition, few senior managers have the time to become personally

involved in such labor-intensive activities, so they do not see the direct benefits which

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can be gained from these efforts. It may also be the case that senior management

overlooks or avoids this area because they do not have a clear model for making

decisions about whether or not training and development activities will lead to a

competitive advantage.3

The role of training and development in a service involved organization is many times

more in comparison with what it has in a manufacturing involved organization. This role

becomes more significant in a situation where the need to transform organizational

culture is identified as the most glaring problem and the most difficult impediment on the

way to organizational growth.4

Increasingly, high performing organizations today are recognizing the need to use best

training and development practices to enhance their competitive advantage. Training anddevelopment is an essential element of every business if the value and potential of its

people is to be harnessed and grown. Many studies have highlighted the clear links

between well designed and strategic training and development initiatives and the bottom

line within the business.5

The environment in which most organizations operate today is continuously changing,

and the rate of change is increasing. Almost most organizations are now involving in

tremendous increase in international business and foreign assignments. Training and

developing the workforce offer an interesting case of change for any organization in light

of uncertain and rapidly changing environment. Many researches argue that training and

development programs increase the organizations' performance and effectiveness.

Toward a better understanding of the effects of training and development in the

workplace, this research points out the importance of training and development the

3

A Strategic Process Model For Small Business Training And Development

Journal Article By James W. Fairfield-Sonn; Journal Of Small Business Management, Vol. 25, 1987

4 http://www.ptcl.com.pk/aboutusc.php?NID=191

5Training And Development - Its Role In AchievingOrganisational Success

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workforce, determines the major types of training and development programs, discusses

the relationship between training and the overall organizational performance, and offers

some guidelines for HR managers to design effective training and development

programs.6

2.1 The Importance of Training7

The significance and value of training has long been recognized. Consider the popular

and often repeated quotation, Give a person a fish and you feed him for a day. Teach a

person to fish and you feed him for a lifetime. This simple but profound saying is

attributed to the wisdom of Confusions who lived in the 5 th century BC. Given todays

business climate and the exponential growth in technology with its effect on the economy

and society at large, the need for training is more pronounced than ever.

Training, in the most simplistic definition, is an activity that changes peoples behavior.

Increased productivity is often said to be the most important reason for training. But it is

only one of the benefits. Training is essential not only to increase productivity but also to

motivate and inspire workers by letting them know how important their jobs are and

giving them all the information they need to perform those jobs (Anonymous, 1998).

McNamara (n.d.) lists the following as general benefits from employee training:

Training is indeed a waste of money when the desired behavior does not occur. Gupta

acknowledges that not all performance problems can be addressed by training. In many

cases, non-training interventions are necessary (Gupta 1999).

6 http://www.oppapers.com/essays/Effects-Training-Developing-Workforce-Organization-Performance/12954

7 A TRAINING NEEDS ASSESSMENT FOR THE UNITED WAYOF DUNN COUNTY WISCONSIN by Susan D. McClelland

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Without the right training, employees can be your [the organizations] biggest liability.

Trained effectively, however, they can become your biggest asset (Bartram and Gibson,

2000). Rosner (1999) adds another ingredient for success support after training. He

states, The most effective programs train workers in new behaviors and then train

managers to support employees as they apply learning daily (Rosner, 1999, p.43).

Support and endorsement from management can greatly enhance training results. One can

conclude that training is not always the answer, and when it is the answer, it has to be the

right training.

Training is big business. In 1998, American companies spent $60 billion on training

(Rosner, 1999).

Training consists of planned programs designed to improve performance at the

individual, group and/or organizational levels. Improved performance, in turn,

implies that there have been measurable changes in knowledge, skills, attitudes,

and/or social behavior.8

The systematic development of the attitudes/knowledge/skill behavior patterns

required by an individual in order to perform adequately a given task or job.9

The acquisition of skills, concepts or attitudes that results in improved

performance in an on-the-job situation.

Employee training is more present-day oriented; its focus is on individual current

jobs, enhancing those specific skills and abilities to immediately perform their

jobs. Training is a learning experience in that it seeks a relatively permanent

change in an individual that will improve the ability to perform on the job.10

8 Wayne F.Cascio, Managing Human Resources, 5th Edition, and USA: Irwin McGraw-Hill, 1998, p. 260.9 Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand & Company LTD,

1999, p. 2.10 Decenzo/Robbins, Human Resource Management, 6th Edition, USA: John Wiley &Sons, INC,

1999, p. 228.

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Implications for Motivating Trainees

Three important implications for motivating trainees are11:

1. Make the objectives of the training program clear at the outset.

2. Set goals that are challenging and difficult enough that the trainees can

derive personal satisfaction from achieving them, but not so difficult that

they are perceived as impossible to reach.

3. Supplement the ultimate goal of finishing the program with sub goals

during training, such as trainer evaluations, work-sample tests, and periodic

quizzes. As trainees clear each hurdle successfully, their confidence about

attaining the ultimate goal increases.

2.3 Training Methods

New training methods appear with passage of time. While some are well

founded in learning theory or models of behavior change (e.g., behavior

modeling), others result more from technological than theoretical

developments (e.g., videotapes, computer-based business games). Training

methods can be classified in three ways; information presentation,

simulation methods, and on-the-job training.

2.3.1 Information Presentation Techniques

Information presentation techniques come under off-the-job training

method and it includes lectures, conferences, correspondence courses,

videos, reading lists, closed circuit TV, behavior modeling and systematic

11Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p272.

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observation, programmed instruction, computer-assisted instruction,

sensitivity training, and long-rang programs of organizational improvement.

2.3.2 SIMULATION METHODS

Simulation methods are another type of off-the-job training method and it

consists of the case method, role playing, programmed group exercises, the

in-basket technique, and business games.

2.3.3 On-The-Job Training Methods

The most widely used training methods take place on the job. The

popularity of these methods can be attributed to their simplicity and the

impression that they are less costly to operate. On-the-job training places

the employees in the actual work situations and makes them appear to be

immediately productive.12It is learning by doing. For jobs that are difficult

to simulate or can be learned quickly by watching and doing, on the- job

training makes sense. On-the-job training methods include orientation

training, apprenticeship, near-the-job training (using identical equipment

but away from the job itself), job rotation, committee assignments (or junior

executive boards), understudy assignments, on-the-job coaching, and

performance appraisal.13

To choose the training method (or combination of methods) that best fits a

given situation, first define carefully what the trainer wish to teach. That isthe purpose of the needs assessment phase. Only then the trainer should

12 Decenzo/Robbins, Human Resource Management, 6TH Edition, USA: John Wiley & Sons INC,1999, p. 230.

13 Wayne.F.Cascio, Managing Human Resources, 5TH Edition, USA:Irwin McGraw-Hills, 1998,p278.

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choose a method that best fits these requirements. To be useful, the method

should meet the minimal conditions needed.

2.4 Training Design Process

A general system model of training design process is as follows14:

TRAINING DESIGN PROCESS

2.4.1 Levels of Analyzing Training Needs

14 Biswajeet Pattananayak, Human Resource Training, 1st Edition, and India: S. Chand &Company LTD,1999, p. 25.

15

ConductingNeeds

Assessment

EnsuringEmployees

Readiness forTraining

Creating aLearning

Environment

EnsuringTransfer of

Training

Developing anEvaluation

Plan

Select TrainingMethod

Monitor andEvaluate the

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There are three levels of analysis for determining the needs that training can

fulfill theseare:

Organization analysis focuses on identifying where within the organization

training is needed.

Task analysis attempts to identify the content of training what an

employee must do in order to perform competently.

Person analysis determines how well each employee is performing the

tasks that make up his or her job.

Training and Development Theories

Kirkpatrick's Learning and Training Evaluation Theory15

Donald Kirkpatrick's 1975 book Evaluating Training Programs defined his originally

published ideas of 1959, thereby further increasing awareness of them, so that his theory

has now become arguably the most widely used and popular model for the evaluation oftraining and learning. Kirkpatrick's four-level model is now considered an industry

standard across the HR and training communities. The four levels of training evaluation

model was later redefined and updated in Kirkpatrick's 1998 book, called 'Evaluating

Training Programs: The Four Levels'.

The four levels of Kirkpatrick's evaluation model essentially measure:

reaction of student - what they thought and felt about the training

learning - the resulting increase in knowledge or capability

behavior - extent of behavior and capability improvement and

implementation/application

15 Donald L Kirkpatrick, Professor Emeritus, University Of Wisconsin

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results - the effects on the business or environment resulting from the trainee's

performance

All these measures are recommended for full and meaningful evaluation of learning in

organizations, although their application broadly increases in complexity, and usuallycost, through the levels from level 1-4.

All these measures are recommended for full and meaningful evaluation of learning in

organizations, although their application broadly increases in complexity, and usually

cost, through the levels from level 1-4.

level

evaluation

type (what

is

measured)

evaluation

description and

characteristics

examples of

evaluation tools and

methods

relevance and

practicability

1 reaction

reactionevaluationis how the

delegatesfelt aboutthetraining orlearningexperience

e.g., 'happysheets',feedbackforms

also verbalreaction,

post-trainingsurveys orquestionnaires

quick and very

easy to obtain

not expensiveto gather or toanalyze

2 learning learningevaluationis themeasurement of theincreaseinknowledg

typicallyassessmentsor tests

before andafter thetraining

interview or

relativelysimple to setup; clear-cut forquantifiableskills

less easy forcomplex

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e - beforeand after

observationcan also beused

learning

3 behavior

behaviorevaluationis theextent ofappliedlearning

back onthe job -implementation

observationandinterviewover time arerequired toassesschange,relevance of

change, andsustainabilityof change

measurement ofbehaviorchangetypicallyrequirescooperation andskill of line-managers

4 results

resultsevaluationis theeffect onthe

business

orenvironment by thetrainee

measures arealready in

place vianormalmanagementsystems and

reporting -the challengeis to relate tothe trainee

individually notdifficult; unlikewholeorganisation

process mustattribute clearaccountabilities

Since kirkpatrick established his original model, other theorists (for example jack

phillips), and indeed kirkpatrick himself, have referred to a possible fifth level,

namely roi (return on investment). In my view roi can easily be included in

kirkpatrick's original fourth level 'results'. The inclusion and relevance of a fifth

level is therefore arguably only relevant if the assessment of return on investment

might otherwise be ignored or forgotten when referring simply to the 'results' level.

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Theory X-Theory Y16

Douglas McGregor developed a philosophical view of humankind with his Theory X andTheory Y in 1960. These are two opposing perceptions about how people view human

behavior at work and organizational life.

Theory X - With Theory X assumptions, management's role is to coerce and control

employees.

o People have an inherent dislike for work and will avoid it whenever possible.

o People must be coerced, controlled, directed, or threatened with punishment inorder to get them to achieve the organizational objectives.

o People prefer to be directed, do not want responsibility, and have little or no

ambition.

o People seek security above all else.

Theory Y - With Theory Y assumptions, management's role is to develop the potential in

employees and help them to release that potential towards common goals.

o Work is as natural as play and rest.

o People will exercise self-direction if they are committed to the objectives (they

are NOT lazy).

o Commitment to objectives is a function of the rewards associated with their

achievement.

o People learn to accept and seek responsibility.

o Creativity, ingenuity, and imagination are widely distributed among the

population. People are capable of using these abilities to solve an organizational

problem.

o People have potential.

16The Human Side of Enterprise by Douglas McGregor

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CHAPTER 3

BACKGROUND OF BANK AL-HABIB

3.1 Definition of Bank

Bank can be defined as:

A financial institution that is licensed to deal with money and its substitutes by

accepting time and demand deposits, making loans, and investing in securities. The bank

generates profits from the difference in the interest rates charged and paid.

A bank is a financial institution where you can deposit your money. Banks provide a

system for easily transferring money from one person or business to another. Using banks

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and the many services they offer saves us an incredible amount of time, and ensures that

our funds "pass hands" in a legal and structured manner.

Bankers play very important role in the economic life of the nation. The health of the

economy is closely related to the soundness of its banking system. Although banks create

no new wealth but their borrowing, lending and related activities facilitate the process of

production, distribution, exchange and consumption of wealth. In this way they become

very effective partners in the process of economic development. Today modern banks are

very useful for the utilization of the resources of the country. The banks are mobilizing

the savings of the people for the investment purposes. If there would be no banks then a

great portion of a capital of the country would remain idle.

A bank as a matter of fact is just like a heart in the economic structure and the Capital

provided by it is like blood in it. As long as blood is in circulation the organs will remain

sound and healthy. If the blood is not supplied to any organ then that part would become

useless, so if the finance is not provided to Agricultural sector or industrial sector, it will

be destroyed. Loan facility provided by banks works as an incentive to the producer to

increase the production. Many difficulties in the international payments have been over

come and volume of transactions has been increased. Cheques, drafts bills of exchange

and letters of credit are very important instruments of the banks. The banks collect these

instruments drawn on banks in other cities or countries and proceeds according to the

accounts of the customer's concerns.

3.1 Historical Background Of Bank Al-Habib

The Bank was incorporated as a public limited company under the companies

ordinance 1984 on October 15, 1991, named as Bank Commerce Al-Habib Limited

having its Registered/Head Office at 126-C, old Bahawalpur Road, Multan. Its shares are

listed o all the Stock Exchanges in Pakistan. Its is a scheduled bank principally engaged

in the business of commercial banking.

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Licenses to open the Banks branches were issued by State Bank of Pakistan

(SBP) and the 1st branch was opened on January 13, 1992 at Karachi. By February 25,

1992, the Bank had opened 5 branches, one each in Multan, Karachi, Peshawar, Quetta

and Mirpur A.K.

3.2 Branch Network

The BAHL as presence in 44 cities and towns of Pakistan. Branches are mostly

located in residential cum commercial areas providing the facility of Banking at your

Doorstep. All branches of BAHL are connected through online system. It has 176

ATMs installed throughout Pakistan.

3.3 Subsidiary And Associate Companies

BAHL has a subsidiary Co. named as AL-Habib Capital Market (pvt) Ltd. which

commenced business in December 2005.

The Associate companies of Bank Al-Habib are Habib Sugar Mills Ltd. and HabibAsset Management Limited. BAHL provides services as a trustee to Dawood Money

Market Fund.

3.4 International Operations

Habib family has been rendering the banking and financial services not only in

Pakistan but in many other parts of the developing and developed world. Some importantoperations are as under.

Bank Al-Habib Wholesale Bank Branch in Bahrain

Habibsons Bank Ltd. London.

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Habib Overseas Bank Ltd, South Africa.

Habibsons Bank Tanzania Ltd.

3.5 Vision Of Bank Al Habib

To be a quality financial service provider maintaining the highest standards in

banking practices.

3.7 Mission Statement of Bank Al Habib

To be a strong and stable financial institution offering innovative products andservices while contributing towards the National economic and social development.

3.8 Board of Directors

The Board of Directors consists of 10 members as under:

Chairman: Mr. Ali Raza D. Habib

CEO/MD : Mr. Abbas D. Habib

Executive Director : Mr. Qumail R. Habib

Directors Mr. Anwar Haji Karim

Mr. Shameem Ahmed

Mr. Hasnain A. Habib

Mr. Imtiaz Alam Hanfi

Mr. Murtaza H. Haib

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Mr. Syed Mazhar Abbas

Company Secretary : Mr. Ahmad Saeed Siddique

3.9 Organization Hierarchy

At each position the duties, goals, functions, responsibility and authority are

clearly explained.

The channels that delegate these activities are called organization hierarchy. This

must be set in such a manner to best accomplish the organizational goals.

The nomenclature of various posts in the bank is as under:

1. Managing Director & Chief Executive (MD/CEO)

2. Executive Director (ED)

3. Advisor

4. General Manager (GM)

5. Deputy General Manager (DGM)

6. Assistant General Manager (AGM)

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7. Senior Chief Manager (SCM)

8. Chief Manager (CM)

9. Consultant

10. Senior Manager (SM)

11. Manager

12. Assistant Manager (AM)

13. Officer Grade-I (OGI)

14. Officer Grade-II (OGII)

15. Sub Officers (S.O)

16. Management Trainees

3.10 Departments in Bank Al Habib

Departmentalization is the process of grouping jobs according to some logical

arrangement.17 The manner in which activities should be divided and formed into

specialized group usually referred to as departmentalization.18 BAHL has used the most

common base for departmentalization i.e. the functional approach to departmentalization.

Functional departmentalization means where grouping of jobs takes place according the

same, or similar activities.19

Following are the Departments of Branch Banking:

1. Cash Department

2. Deposits Department

17 Ricky W. Griffin, Management, Ed 5th, and USA: Houghton Mifflin Company, 1997, p298.18 John Douglas and Joseph L. Massie, Managing, Ed. 2nd, New Jersey: Prentice Hall, 1973, p14319 Ricky W. Griffin, Management, Ed 5th

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3. Clearing Department

4. Bills/Collections Department

5. Remittances Department

6. Foreign Exchange or Foreign Trade Department

7. Branch Administration

3.1Working Setup Of Branches

26

Manager

Asst. Manager/ operations manager

Operations dept Credit Foreign Exchange Branch Admin


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CHAPTER 4

EMPLOYEE DEVELOPMENT

4.1 Definition of Employee Development

Development represents those activities that prepare an employee for future

responsibilities.20

Development is training people to acquire new horizons, technologies, orviewpoints. It enables leaders to guide their organizations onto new expectations

by being proactive rather than reactive. It enables workers to create better

20 William B Werther fr Keith Davis, Human Resource and Personnel Management, 5th Edition, McGrawHill Inc; IntlEdition, 1996, glossary.

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products, faster services, and more competitive organizations. It is learning for

growth of the individual, but not related to a specific present or future job.

With the following objectives in mind, the Bank initiated the preparation of a

Human Resource Development policy and plan.Employee development, by design is more future oriented and more concerned

with education than employee job-specific training. By education we mean that

employee development activities to instill sound reasoning process to ones ability

to understand and interpret knowledge rather then imparting a body of facts or

teaching a specific set of motor skills. Development therefore, focuses more on

the employee personal growth. Successful employees prepared for positions of

greater responsibility have analytical, human, conceptual and specialized skills. Itis important to consider one critical component of employee development: all

employees, regardless of level, can be developed21. Although it is critical for

individuals to be trained in specific skills related to managing-like planning,

organizing, leading, controlling and decision-making.

Employee Development Methods

Some development of individual abilities can take place on the job. Job

rotation, assistant-to positions, &committee assignments are three popular on the

job techniques while lecture courses and seminars, simulation exercises; and

outdoors training are three off-the jobs methods.

4.3 On-The-Job Techniques

4.3.1 Job Rotation

21 Decenzo/Robbins,Human Resource Management, 6th Edition, USA: John Wiley &Sons INC, 1999, p.232.

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Job rotation involves moving employees to various positions in the organization

in an effort to expand their skills, knowledge, and abilities. Job rotation can be

either horizontal or vertical rotation22. It turns a specialist into a generalist. In

addition to increasing the individuals experience and allowing him or her to

absorb new information, it can reduce boredom and stimulate the development of

new ideas.23 It can also provide opportunities for a more comprehensive and

reliable evaluation of the employee by his or her supervisor.

4.3.2 Assistant-To Positions

Employees with demonstrated potential are some times given the opportunities to

work under a seasoned and successful manager, often in different areas of the

organizations. Working as staff assistants or, in some cases, serving on special

boards, these individual perform many duties under the watchful eye of a

supportive coach and are groomed for assuming the duties of the next higher

level.24

4.3.3 Committee Assignment

Committee assignment can provide opportunities for employee to share in

decision making, to learn by watching others, and to investigate specific

organizational problems.25 When committee is of temporary nature, they often

take on task-force activities designed to solve a particular problem, certain

alternative solutions, and make a recommendation for implementing a solution.These temporary assignments can be both interesting and rewarding to the

employees growth.

22 Wayne F. Cascio, Managing Human Resource, 5th Edition, USA: Irwin McGraw-Hill, 1998, p. 288.23 Ibid. p. 289.24 Ibid. p. 437.25 Ibid. p. 437.

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4.4 Off the Job Training Techniques

4.4.1Lecture Courses and Seminars

Traditional forms of instructions revolve around formal lecture courses and

seminars.26 Using a digitized computer technology, a facilitator can be in one

location giving a lecture, while simultaneously transmitted over fiber optic cables,

in real time to several other locations.

The most widely used simulation exercises include case studies, decision games,

and role-plays27.

These cases represent attempts to describe, as accurately as possible, real

problems that managers have to face. Trainees study the cases to determine

problems, analyze causes, develop alternate solutions, select what they believe to

be the best solution, and implement it. Simulated decision games and role playing

exercises put individuals in the role of acting out supervisory problems.

Simulation frequently played on a computer programmed, provide opportunities

for individuals to make decisions and witness the implications of their decisions

on other segments of organization.

4.4.2 Outdoors Training

Some times refer to as wilderness or survival training; the primary focus of such

training is to teach trainees the importance of working together; getting as a team.

Outdoor training typically involves some major emotional and physical challenge.

26 Wayne F.Cascio, Managing Human Resource, 5th Edition, USA:Irwin McGraw-Hill, 1998, p290.27 Ibid. p. 290.

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This could be white water rafting, mountain climbing, paint-ball games, or

surviving a week in the jungle28. The purpose of such training is to see how

employees react to the difficulties that nature presents to them. The reality is that

todays business environment does not permit employees to stand alone. This

has reinforced the importance of working closely with one another, building

trusting relationships, and succeeding as a member of a group29.

CHAPTER 5

EMPLOYEE TRAINING AT BANK AL HABIB

5.1 Training

Training is the acquisition of technology, which permits employees to perform their

present job up to the standards. Training is also required to enable the Bank to offer

competitive services to its clients. Training is the process of developing qualities in

human resources that will enable them to be more productive.

5.1.1 Objectives

Increase Banks productivity by:

Improving performance of employees.

Increasing adaptability and flexibility of each employee.

Increasing the level of commitment.

Reducing the employee turnover and absenteeism.

28 Decenzo/Robbins,Human Resource Management, 6th Edition, USA: John Wiley & Sons INC, 1999,P. 234.29 Ibid. p. 234.

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Provide vehicle for institutional growth through Manpower Development.

Aid Institutional strengthening by building professional competence.

Increase and improve productivity/efficiency, which leads to increased

profitability.

Foster uniformity in practice and procedure.

Improve standards of customer service.

Develop a common corporate culture

Aid in the management of change made necessary due to change in technology,

law/regulations, economic and political environment and competitive pressures. Reduce the Gap between standard/desired performance and actual performance.

5.1.2 Purpose

The major purpose of training plan is to remove performance deficiencies,

whether current or anticipated, that are the result of employees inability to

perform at the desired level, and be more productive. Further, BAHL training planis also very important because ever-changing financial/ banking sector demands

flexibility and adaptability in the employees.

5.1.3 HR Department

It is imperative for the Human Resource Department of the Bank not only to

provide educated and trained manpower so as to enable them to handle their jobs

more professionally and efficiently in all areas of the banking but also to develop

talent and add value to staff potential to enhance output, improve profitability.

With the growth of the BAHL, the need for training both for emerging new issues,

as well as strengthening of basic competencies began to be addressed.

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5.1.3.1 Functions Of HR Department Of The Bank Al Habib

The Human Resource Department of the BAHL will perform the following

specific functions:

1. Assess training needs of the staff of the Head Office/ Divisions/ Departments/

Branches in consultation with the In Charge/Manager Concerned.

2. Draw a training plan where by every officer of the Bank especially at the level of

OG-1 and below should participate and have training in the core areas of The

Banking laws, procedures, advances, operations, foreign exchange.

3. Chalk out training schedule for the current year.

4. Arrange internal and external courses of the staff.

5. Internal courses are arranged at head office premises for the subjects where in a

large number officers need to be trained.

5.1.4 Phases of Training and Development

Training and development program of the BAHL is designed in three phases:

1. Assessment Phases

2. Implementation phase

3. Evaluation phase

5.1.4.1 Assessment of Training Needs

BAHL uses two methods to assess the training needs of the employees. First, the

head office of the bank receives invitation from different training institutes regarding

different courses, seminars, and workshops; where after these are communicated to the

concerned branches, departments and divisions for their input. Accordingly relevant staff

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is nominated against the concerned courses. These nominations are later on provided to

the respective institutes.

Secondly, to assess the training & development needs of each employee, a questionnaire

is designed comprising of two parts: Section-1 to be completed by employees (basicinformation) and Section-2 by the controlling officer. Section 2 plays the major in

determining the training needs of an employee.

CHAPTER 6

ANALYSIS

Data Collection is an important aspect of any type of research study. Inaccurate data

collection can impact the results of a study and ultimately lead to invalid results.

Data collection methods for impact evaluation vary along a continuum. At the one end of

this continuum are quantitative methods and at the other end of the continuum are

Qualitative methods for data collection.

Questionnaires are an inexpensive way to gather data from a potentially large number of

respondents. Often they are the only feasible way to reach a number of reviewers large

enough to allow statistically analysis of the results. A well-designed questionnaire that is

used effectively can gather information on both the overall performance of the test

system as well as information on specific components of the system. If the questionnaire

includes demographic questions on the participants, they can be used to correlate

performance and satisfaction with the test system among different groups of users.

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Questionnaires have been distributed among employees apart from the interviews to

know their response regarding certain issues of employee orientation, training and

development. A questionnaire is a pre-formulated written set of questions to which

respondents record their answers. A questionnaire is an efficient date collection

mechanism. Questionnaires were personally administered. Any doubt that the

respondents have on any question been clarified on the spot. The research topic was

introduced to the respondents and they were motivated to give their frank answers.

1. Training duration I received was?

Options Percentages

1-2 Month 90%

3-4 Months 0%

5-6 Months 10%

35

Employees duration of training

1-2 months

90%

3-4 months

0%

5-6 months

10%


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The pie chart for this question shows that most of the employees say that their training

duration was 1-2 months. In answer to this question, 90% employees said that their

training duration was 1-2 months, and 0% said 3-4 months and 10% said 5-6 months

2. Is training necessary for every employee?

Options Percentages

Yes 100%

No 0%

36

Percentage of the training necessity

Yes

100%

No

0%


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The pie chart for this question shows that employees say that training is necessary for

every employee. In answer to this question, 100% employees said yes.

3. Bank provides incentives after training?

Options Percentages

Yes 36%

No 64%

37

No

64%

Yes

36%

percentage of incentives

employes received after

training


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The pie chart for this question shows that majority of employees say that Bank does not

provide incentives after training. In answer to this question, 36% employees said yes and

64% said no.

4. I am satisfied from the training I received?

Options Percentages

Yes 94%

No 6%

38

No

6%

Yes

94%

percentage of satisfaction after

training


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The pie chart for this question shows that majority of employees say they are satisfied

from the training they received. In answer to this question, 94%employees said yes and

6% said no.

5. Trainers are capable enough of handling the problems during training?

Options Percentages

Yes 96%

No 4%

39

No

4%

Yes

96%

trainers handling the

problem


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The pie chart for this question shows that majority of employees say that trainers are

capable enough of handling the problems during training. In answer to this question,

96%employees said yes and 4% said no.

6. I practically performed the training?

Options Percentages

Yes 72%

No 28%

40

No

28%

Yes

72%

practically training

performed


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The pie chart for this question shows that majority of employees say that trainers give

positive response during training. In answer to this question, 88% employees said yes and

12% said no.

8. Training method encourages in improving my job performance?

Options Percentages

Yes 92%

No 8%

42

No

8%

Yes

92%

training for better job

performance


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The pie chart for this question shows that majority of employees say that training method

encourages in improving job performance. In answer to this question, 92% employees

said yes and 8% said no.

9. Training has impact on my performance appraisal?

Options Percentages

Yes 64%

No 36%

The pie chart for this question shows that majority of employees say that training has

impact on performance appraisal. In answer to this question, 64% employees said yes and

36% said no.

43

No

36%

Yes

64%

percentage of performance

appraisal


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10. There is any change in my behavior / attitude after receiving training?

Options Percentages

Yes 90%

No 10%

The pie chart for this question shows that majority of employees say that there is change

in behavior / attitude after receiving training. In answer to this question, 90% employees


44

Yes

90%

No

10%

perentage of employees behvaiour after

receving training


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11. The mode of training I received is?

Options Percentages

On the job training 94%

Off the job Training 6%

The pie chart for this question shows that majority of employees say that the mode of

training is on the job training. In answer to this question, 94% employees said that

training mode is on the job training and 6% said off the job training

45

On the job

training

94%Off the job

Training

6%

Employees perentage mode training

received


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12. The bank has training schedule?

Options Percentages

Yes 100%

No 0%

The pie chart for this question shows that employees say that the bank has training

schedule. In answer to this question, 100% employees said yes.

46

Training schedule of the bank

Yes

100%

No

0%


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13. The training program offered needs improvement?

Options Percentages

Yes 92%

No 8%

The pie chart for this question shows that majority of employees say that the training

program offered needs improvement. In answer to this question, 92% employees said yes

and 8% said no.

47

Yes

92%

No

8%

perentage of improvement in training

program


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14. The bank bears all the costs of the trainee?

Options Percentages

Yes 86%

No 14%

C o s t o f th e t

Y E

8 6

1 4 %

The pie chart for this question shows that majority of employees say that the bank bears

all the costs of the trainee. In answer to this question, 86% employees said yes and 14%

said no.

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15. The training program fulfilled my training needs?

Options Percentages

Yes 78%

No 22%

The pie chart for this question shows that majority of employees say that training

program fulfilled employees training needs. In answer to this question, 78% employees


49

Satisfaction Ratio Regarding Training Need

Yes

78%

No

22%


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16. There is practical aspect of training given to me?

Options Percentages

Yes 82%

No 18%

The pie chart for this question shows that majority of employees say that there is practical

aspect of training given to employees. In answer to this question, 82% employees said

yes and 18% said no.

50

Yes

82%

No

18%

practical aspect of training


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17. The training method encourages positive transfer of knowledge and skills

from the

training

to the

job?

Options Percentages

Yes 86%

No 14%

51

Positive Transfer of Knowledge an skills

YES

86%

NO

14%


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The pie chart for this question shows that majority of employees say that training method

encourages positive transfer of knowledge and skills from the training to the job. In

answer to this question, 86% employees said yes and 14% said no.

18. The training environment is friendly?

Options Percentages

Yes 72%

No 28%

52

Environment Friendliness

YES

72%

NO

28%


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The pie chart for this question shows that majority of employees say that the training

environment is friendly. In answer to this question, 72% employees said yes and 28%

said no.

19. Training has polished my skills and helped me to perform better?

Options Percentages

Yes 96%

No 4%

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T r a i n i n g i n t e rm s o f b e t t e r p

Y E

9 6

N O

4 %

The pie chart for this question shows that majority of employees say that training has

polished their skills and helped them to perform better. In answer to this question, 96%

employees said yes and 4% said no.

20. The budget and other resources allocated for the training programs are

enough?

Options Percentages

Yes 78%

No 22%

54

Satisfaction level of the budget allocation

Yes

78%

No

22%


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The pie chart for this question shows that majority of employees say that the budget and

other resources allocated for the training programs are enough. In answer to this question,

78% employees said yes and 22% said no.

CHAPTER 7

FINDINGS

1. One of the main finding of the report is that training method encourages in

improving job performance and the training program fulfilled employees training

needs.

2. Most of the employees say that their training duration was 1-2 months.

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RECOMMENDATIONS

Following are some of the recommendations;

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1. The Bank should develop a mechanism that includes positive reinforcement for

the trainee. This will motivate them to polish their skills, gain knowledge, and

help develop their attitude.

2. The trainers are required to teach employees the practical side of their jobs. Theyshould give them an opportunity to practice what they have learnt in the training

session.

3. The Bank should provide incentives after training.

4. Training program offered needs to be improved in order to make the employees

more effective in performing their job.

CONCLUSION

The Bank Al Habib recognizes the need to enhance productivity, performance and value

of its employees through continued training and education. This is necessary for the Bank

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in order to achieve and maintain a leading position in the industry through a pool of its

skilled and motivated employees. The Banks training and development programs aim to

improve and enhance employee performance through continued learning and skill

development. It also enhances their skills and knowledge of banking practices.

Training and development helps in building more efficient, effective and highly

motivated team, which enhances the companys image and gives it a competitive edge

over other banks. The training method encourages in improving job performance and the

training program fulfilled employees training needs but still the training program offered

by Bank Al-Habib needs improvement.

But the Bank should develop a mechanism that includes positive reinforcement for the

trainee. This will motivate them to polish their skills, gain knowledge, and help develop

their attitude.

BIBLIOGRAPHY

1. Block Stanley B. (1994). Foundation of Financial Management. Ed. 7 th.

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2. Cascio Wayne F. (1998). Managing Human Resources. Ed 5th. USA: Irwin

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Management: A Life Cycle Approach. USA: Richard D. Irwin, Inc.

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25. Ulrich Dave. (1997). Human Resource Champions: The next agenda for

adding value and delivering results. Boston: Harvard Business School.

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Personal Management. Ed. 5th. USA: McGraw Hill Inc.

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29. The Bank Al Habib 2008 Annual Report

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31. www.bankalhabib.com

32. www.ptcl.com.pk

33. www.oppapers.com

34. www.google.com

35. www.wikipedia.org

.
http://www.bankalhabib.com/http://www.ptcl.com.pk/http://www.google.com/http://www.wikipedia.org/http://www.bankalhabib.com/http://www.ptcl.com.pk/http://www.google.com/http://www.wikipedia.org/

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