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    Background of the study

    I have selected Soneri bank to study their Human resource development department.The purpose to select this department is that I can easily get true and valid informationthrough their respected persons because I have some contacts there. Second reason isthat the department is not very much mature as compare to the large well developed

    organizations so I get a better chance to see the lacking of some HRD practices or maybe practices are not very mature.

    History of Soneri bank

    Soneri Bank Limited, was incorporated in Pakistan on 28 September 1991 as a publiclimited company under the Companies Ordinance, 1984 with registered office in Lahore.The Bank opened the first branch for operations on 16 April 1992 in Lahore which wasfollowed by Karachi Branch on 09 May 1992. The bank now operates its 200 branchnetwork all over the country including the Northern Areas of the country. The bankconsiders its employees as the biggest and valued asset.

    Products and services offered by bankSoneri Bank Limited offers a full range of Retail Banking services. Corporate andTreasury operations, worldwide network of correspondents and a complete range ofTrade Finance products make our bank a perfect place to do trade business with. Whiledesigning products for our customers, we have taken care of the needs of a variety ofcustomers.Our Consumer Finance schemes and Islamic mode of Banking caters to another nicheset of customers with a mission to develop strong banking relationships throughsyndicate financing and also on standalone basis.

    Some of our products and services are as below:- Savings Account

    - Term Deposits- Current Account- Basic Bank Account- Soneri Ikhtiar Current Account- Online Banking- SMS Alert- SME Finance- Agriculture Financing- Lockers- Consumer Finance- Electronic Banking- Retail, Commercial, Corporate and Trade

    Financing- Syndicate Financing

    Human resource department

    Soneri Bank Human Resource Division is responsible to take care of all HR matters ofBanks network throughout the country and it fully participates in achieving Banks goalsand objectives.

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    Human Resource development

    I have visit HRD department of Soneri bank which is located at its main head office, I.Ichundrighar road. This department is formed before 5 years, in 2007 and previously their

    functions done by training and development department. HRD is separate from humanresource department but HRD manager reports to HR manager. In banking sector, mostof the rules, polices and regulations by the regulator, the state bank of Pakistan.

    People are our assets

    Our people are our biggest asset, and we are committed to assist them in exploring anddeveloping their full potentials with an array of employee-oriented policies to facilitatethem. As a learning organization, we encourage our people in their pursuit of knowledgethrough systematic education and professional trainings (in-house and external) andcertifications. Our people are groomed and developed through organized job rotations tohave enriched and fulfilling careers.

    Ratio of HR professionals/the number of employees

    The ratio of one HR professional to the number of employees is 1:25. This clear cut ratiois defined by the state bank of Pakistan. This is very good ratio as to take careemployees. The regulator also has strict rules and regulations which have to perform byall the banks. Thus this is good for employees and organization as well. It creates astrong relationship among them which shows employees engagement and they takecares employees concerns.

    Employee empowerment

    At SBL we have defined, Line of Authority Management, which defines rules andregulations for all individual to exercise powers accordingly. Employees can takedecisions but its limited to their positions authority and its predefined by themanagement.

    Motivation

    Their motivation philosophy based upon three points affiliation motive, achievementmotive and reinforcement theory.Recently they send their managers Bangkok, Thailand for entertainment and to make

    their minds fresh and especially for relaxation. They also done various activities to takecare their employeesTheir practices;They develop good management and supervision to some extent.They design jobs and organizing work groups to make them as satisfying as possible.They provide feedback to staff about their performance by promotions and annualbonuses.They make effective arrangements for communications and consultation.

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    Reward system

    Employee Reward covers how people are rewarded in accordance with their KPIs and

    value to an organization. It is about both financial and non-financial rewards and

    embraces the strategies, policies, structures and processes used to develop and

    maintain reward systems. The aim of employee reward policies and practices is to help

    attract, retain and motivate high-quality people. Reward system based upon three basic

    components compensation, recognition and benefits.

    Recognition on employees performance is very important to engage them in work and

    reinforce their energy to perform. Reward system should be fair and transparent to

    motivate the employees. A key focus of recognition is to make employees feelappreciated and valued. Research has proven that employees who get recognized tend

    to have higher self-esteem, more confidence, more willingness to take on new

    challenges and more eagerness to be innovative.

    Financial incentives for excellent performance

    People feel strongly about it. Pay helps to satisfy many needs (e.g. security, esteemneeds, resources to pursue self-actualization). Pay is the subject of much importantbusiness legislation (e.g. national minimum wage). It helps attract reliable employeeswith the skills the business needs for success. Pay also helps retain employees ratherthan leave and perhaps join a competitor. This practice is very normal I banking sector.For most employees, the remuneration package is the most important part of a job and

    certainly the most visible part of any job offer.

    There are many methods of financial reward in soneri bank.

    Commission Performance-related pay Bonuses Shares and options Benefits in kind (fringe benefits)

    Because pay is a complex issue, there are several ways in which businesses determinehow much to pay and which methods to use:

    Job evaluation: it is done here and is usually the most important factor which is involvedin the job being paid and it compare with similar jobs in the same industry.

    Fairness: they are fair to pay needs to be perceived and be seen to match the level ofwork.

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    Negotiated pay rates: the rate of pay may have been determined elsewhere and thebusiness needs to ensure that it complies with these rates. This activity is doneespecially for managers and seniors executives.

    Market rates: this is an important influence to select the pay rate. If a business tries topay below the market rate then it will probably have difficulty in recruiting and retaining

    suitable staff. In soneri bank, their pay is at industry median.

    Individual performance: this is also done here. It increasingly businesses include anelement of performance-related reward in their pay structures. In some departmentssuch as sales, the major part of employees pay is depend upon the achievement of theirtargets.

    However, it is important to remember that pay is only one element of motivation and willwork best where management also gives attention to other areas.

    Revision of Salaries and benefits

    Employees salaries, perks and benefits are reviewed periodically and updated to alignthem in accordance with the market. In Soneri Bank Ltd, it is purely based of thephilosophy of Pay for Performance. Their pay scale is at market average.

    Information sharing culture

    Organizational Culture

    Organizational culture can be thought of as a relatively rigid tacit infrastructure of ideas

    that shape not only our thinking but also our behavior and perception of our business

    environment. It effectively establishes a set of guidelines by which members of an

    organization work and how those organizations are structured. Also we tend to resist

    change rather than embrace it.

    Knowledge and Information

    Knowledge is often seen as a rich form of information. This differentiation however is not

    terribly helpful. A more useful definition of knowledge is that it is about know-how and

    knows-why.

    Knowledge Management

    There are many definitions of Knowledge Management.

    Knowledge Management is a business philosophy. It is an emerging set ofprinciples;

    processes, organizational structures, and technology applications that help people share

    and leverage their knowledge to meet their business objectives.

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    This puts focus and responsibility on the individual, the knowledge worker and on the

    nature of knowledge management. Also critically it is about meeting business objectives.

    Knowledge Management is not an end in its self. It is also fundamentally about sharing

    knowledge and putting that knowledge to use.

    The most effective way to create a knowledge sharing culture is first to start to practice it

    at every level. The higher up the organization the more effective they will be in changing

    the culture but even if they are low down the hierarchy they have an influence. Second,

    put in place the knowledge sharing technology and train and educate people in its

    effective use. People with the appropriate knowledge sharing mindset and the

    appropriate knowledge sharing technology to support them will rapidly bring about a

    knowledge sharing culture that helps them better meet your business objectives.

    In soneri bank, what I personally feel that knowledge management is not mature but the

    information sharing is here. The transfer of news is very fast among different branches

    whether news are positive or negative but management didnt Manage it properly.

    Job rotation

    In order to further grooming and learning, a robust system of job rotation is implemented

    thereby, every employee especially in branches, is rotated and given new assignment

    every after three years. Job rotation may not apply among different departments in

    soneri bank because their expenditure related to every position is define and heavy such

    as ( e.g; if a specialist of finance may transfers to human resource department then a

    complete training is required). Specific technical skills / expertise or specialists are

    required and hired employees for some specific technical skills / expertise or specialists

    where heavy expenditures are involved.

    Employees empowerment is the power to take decision by them at your work place. Inbanking sector, SBL have defined the Line of Authority Management, which definesrules and regulations for all individual to exercise powers accordingly. To some extent,employees have power but its very rear.

    Enhancing employee satisfaction

    Money is not only one required factor to satisfy employees but culture of the work placeis also very important

    1. Measure Employee Engagement; Start measuring employees' passion about workand the work environment by issuing an employee satisfaction survey. Employeesatisfaction surveys using a scale of agreement (a Likert Scale) provide a quantitativemeasurement that can be combined with open-ended comments to identify opportunitiesto make employees happy. There are many employee engagement activities

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    2. Identify What Employees Like; By gathering compliments through employeesatisfaction surveys in addition to concerns, your company can find out if its engagementefforts make a meaningful, lasting contribution to employees. This is truly absent here.

    3. Help Employees See the Big Picture; Employees wants to feel that they arecontributing and making a difference. Help your employees to see the big picture and

    how they contribute to a functioning whole. This will also empower employees to makedecisions and improve employee satisfaction. they realize their employees that they aremajor partto achieve the goals.

    4. Use Training to Increase Confidence; Managers who cut training budgets to savecosts do not understand how service delivery and morale can suffer as a result.Employees need training to do their job confidently and to facilitate career advancementwithin the organization. They give them proper training and its must by the rules andregulations of SBP.

    5. Establish Mentoring Programs; They train and encourage seasoned employees to bementors. A mentoring program can facilitate dynamic skill growth through an

    organization and foster a sense of community while improving employee satisfaction andemployee engagement.

    6. Promote Team Building; they encourage team building activities among departmentsto create trust and acceptance. Strong, loyal teams provide one level of acceptance, andteamwork between departments provides another.

    7. Build a Supportive Environment; the environment is supportive to some extent. Ifdissatisfaction with wages and benefits masks problems that will not further entertain bymanagement. Employees may need help with coping skills, problem-solving skills,tactics for handling difficult situations, or expressing their personal feelings.

    8. Don't Be Afraid to Tell the Truth; Respect your employees through degrees oftransparency. Communicate how your business is really doing on a quarterly or semi-annual basis. Give your employees information to understand shifts in corporate policydue to the economic or competitive environment. This is lacking because employees feelreluctant to tell the truth.

    9. Retrain or Get Rid of Bad Managers; one bad manager can pollute multiple layers ofan organization. Poor managers bring down employee morale, which spills over into theengagement level of customers.

    10. Recognize Employee Contributions - Recognition from a supervisor of at least a rankabove an employee makes a meaningful, engaging difference in employee morale and

    employee loyalty. Employee recognition is here.

    11. Use Technology to Manage Employee Engagement - Technology is available to helpyou go beyond a single employee satisfaction survey annually or an email link on thecompany Intranet. Enterprise Feedback Management systems can be used to centralizeemployee satisfaction surveys and employee feedback and track both qualitative andquantitative information. Third-party systems provide for employee anonymity, whichencourages open and honest employee feedback. This activity is not present.

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    Problem sharing culture

    They have an open door policy for all the communications and problem sharing.this ispolicy by SBP They addressed employees problems whether its related to work placeconflicts and their personal. If employee is not in piece mind how he will performaccordingly. Problems related to work place are addressed but employees personal

    problems is not as addressed as they are important.

    Investment in Training and development

    As far as the importance of training is concerned, they invest Rs.32 M for training andthey arranged approximately 165 training sessions which includes both technical andsoft skill training.A full fledge training centers are in operation in Karachi and Lahore where employeesand new recruits are provided training through the year. Training is just one possible wayto organize and implement learning processes in organizations and not always the mosteffective one. Training and development have come to be viewed as lifelong activity,

    rather than the front end acquisition of qualifications. As a result, the focus of concernhas shifted from what the trainer does, to what the learner requires. The ultimate aim ofthe training and development process has been characterized as the creation of thelearning organization, constantly reviewing its mistakes and successes and adapting itsactivities appropriately.

    Career development

    The main thrust of HR Division is to recruit the best talents available, train and developthem through in-house and out-side training programs and to keep them motivated.

    At Soneri Bank, we have worked hard to earn a reputation as a great place to work. We

    are committed to being an inclusive company where all people are treated fairly,recognized for their individuality, promoted based on performance and encouraged toreach their full potential.

    Trainee Officer Program is our systematic recruitment efforts carried out twice a year toallow fresh graduates to be able to launch their banking careers with Soneri Bank. Thesegraduates are recruited in two batches in a year through Aptitude Test, followed by aninterview of the applicants successful in the Test. These applicants are put through arigorous training of six months which includes both classroom training and on-the-jobtraining in actual work environment.

    After completion of the training successfully, the Trainee Officers are inducted in regular

    Officer Grade.

    Trainee Officers will be imparted in following areas

    General BankingCorporate InvestmentCreditRisk ManagementCompliance

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    Treasury ManagementAudit

    Performance appraisal

    Performance appraisal is an important tool to ensure that goals and targets are met.Hence, a comprehensive Employee Performance Appraisal system is in place wherebyeach employee is subject to be appraised and his/her input is also obtained during theappraisal process. Based on employees performance and talents, promotion and annualincrements are decided. In addition, employees achievement in meeting their goals andtargets and acquiring professional education is also recognized through cash awardsand appreciation.

    A performance appraisal or performance evaluation is a systematic and periodic processthat assesses an individual employees job performance and productivity in relation tocertain pre-established criteria and organizational objectives. Other aspects of individual

    employees are considered as well, such as organizational citizenship behavior andaccomplishments, potential for future improvement, strengths and weaknesses, etc.

    MethodsTo collect performance appraisal data, there are three main methods: objectiveproduction, personnel, and judgmental evaluation. Judgmental evaluations are the mostcommonly used with a large variety of evaluation methods.

    On annual basisThey typically conducted annually. They dont go for interview for performance appraisal.They can improve it and providing feedback to employees, counseling and developingemployees, and conveying and discussing compensation, job status, or disciplinary

    decisions.PA is often included in performance management systems. Performancemanagement systems are employed to manage and align" all of an organization'sresources in order to achieve highest possible performance. How performance ismanaged in an organization determines to a large extent the success or failure of theorganization. Therefore, improving PA for everyone should be among the highestpriorities of contemporary organizations.

    BenefitsSome applications of PA are performance improvement, promotions, termination, testvalidation, and more. While there are many potential benefits of PA, there are also somepotential drawbacks. For example, PA can help facilitate management-employeecommunication; however, PA may result in legal issues if not executed appropriately as

    many employees tend to be unsatisfied with the PA process. PAs created in anddetermined as useful in the United States are not necessarily able to be transferablecross-culturally.

    Promotion from within

    By Internal Job Watch, we fill the gaps from the internal resources and if it doesnt, wehire the same from external rescues.

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    "It's important for companies to promote from within. Otherwise, there's no career path forthe people there and it forces (employees]) to constantly be job hunting because they knowthey're not going anywhere in that company

    While leadership development programs are great for identifying existing talent within your

    ranks, it's also a good idea for business owners to establish an overall company culture ofpromoting from within

    If you're going to promote from within, it's essential to have a specific plan for doing so. This

    is called succession planning, the process of determining key personnel who will be retiring

    or moving within the organization and finding internal leaders who can replace them.

    Deciding the skills that the organization will need in future leaders is the first step insuccessful succession planning. It is important to realize that what constitutes effectiveleadership today is not necessarily what will be needed tomorrow.

    Succession planning

    Succession planning is very important for the employees motivation and recognition. Insoneri bank, they prefer to promote employees from within. Whenever any post is vacant, itpublish internally on companys private website then employees may apply for this post withrespect to the qualification and experience this job is required and it matches withemployees profile. They fill their gaps from the internal resources and if it doesnt, they hirethe same from external resource.

    Identifying up-and-coming leaders is done in succession planning. Employees who showinitiative, a strong work ethic and visionary thinking aligned with business objectives are

    clear picks. But don't overlook lower-profile staff members. Finding the organizations nextleaders requires close attention to every employees performance record.

    Conferring with promising employees to learn their career goals, strengths and weaknessesis the third step in succession planning. Management, HR department and the HRDdepartment should be involved in this process using both structured evaluation techniquesand informal discussions.

    They provide training and mentoring opportunities to develop the potential leaders.Continuing education, cross-department transfers, additional responsibilities and specialprojects are tools for developing their natural leaders.

    Some companies conduct succession planning in a low-key, under-the-radar fashion.Others make it well known that there is competition for future promotional opportunities andchallenge the ambitious individuals to display their best efforts.

    Succession planning is a key factor in reducing a companys risk exposure, improvingmorale and productivity and planning for future growth. It should permeate the organizationfrom top to bottom, constantly seeking out internal leadership and cultivating the nextgeneration of management.

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    Equal employment opportunity

    Equal employment opportunity and sheer objectivity is the base of our recruitment efforts.We believe in constant learning and development of our employees, maximum facilitation forthem for all their needs, extremely competitive compensation and benefits for their betterstandard of life, fair and equal treatment, and providing them with an excellent workenvironment.They encourage male and female both on equal basis and promote them depend upon theirperformance avoiding discrimination among gender.

    ConclusionHRD encompasses the broad set of activities that improve the performance of the individualand teams, hence the organization develop when the human resource develops. I havediscussed various elements of HRD which really works in soneri bank and which are not inpractice much. HRD is lifeblood of any organization.

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    Quesionere(filled by the HRD manager of soneri bank, named JAFFAR ALI)

    What is the reward system? Is it based upon excellent performance or experience andseniority?

    Answer:-Employee Reward covers how people are rewarded in accordance with their KPIs andvalue to an organization. It is about both financial and non-financial rewards andembraces the strategies, policies, structures and processes used to develop andmaintain reward systems. The aim of employee reward policies and practices is to helpattract, retain and motivate high-quality people.

    In Soneri Bank Ltd, it is purely based of the philosophy of Pay for Performance.

    How much you invest on training and development? How many times you arrangedtraining sessions in the last year? These trainings are technical or of soft skills?

    Answer:-

    In 2011 we invest Rs. 32 M for training and we arranged approximately 165 trainingsessions which includes both technical and soft skill training.

    Did your organization influence by the last recession and you go for downsizing?

    Answer:-

    Yes

    What are the employee share ownership plans?

    Answer:-

    Please elaborate it for me.

    Is their Promotion from within or looking for experience and talented employees from otherbanks?

    Answer:-By Internal Job Watch, we fill the gaps from the internal resources and if it doesnt, we

    hire the same from external rescues.Is their decentralization of decision making and empowerment? At what extent employees haveright to take decision on the job?

    Answer:-

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    At SBL we have defined, Line of Authority Management, which defines rules andregulations for all individual to exercise powers accordingly.

    Are employees are welcome for discussions and share their problems? Communication systemis open or closed?

    Answer:-

    At SBL we have open door policy.

    Does you evaluate the outcome of HRD programs?

    Answer:-

    Yes.

    The pay scale is higher than average industry salaries or not?

    Answer:-

    Our pay is scale is at market median.

    Is team working encouraged within the bank and to what extent? Are they self-managed?

    Does job rotation take place within departments?

    Answer:-Yes, however Job rotation may not apply to: Where specific technical skills expertise orspecialists are required and Hired for some specific technical skills / expertise or specialistswhere heavy expenditures are involved.

    Does recruitment system is internally efficient or its outsourced?

    Answer:-All recruitment is done internally.

    How you motivate you employees to bring out their true potential?

    Answer:-I usually consider three points, Affiliation Motive, Achievement Motive, throughreinforcement.

    What is the ratio of one HR professional to the number of employees?

    Answer:-

    SBL HR to line ratio is 1:25

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    A

    Report on

    Human resource development practices

    In

    Soneri bank limited

    Prepared by; Misbah aslam

    Submitted to; Sir Tanzeem Qadari