Habib Bank Ltd

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					Assessing the Culture of My Organization
     Habib Bank Limited (HBL)

Submitted by: Mohammad Tofazzal Hossain

Course Title: Management of Organizations

Success or failure of an organization largely depends on the culture of that Organization.
Organizational culture does not take a distinct shape or character overnight. Actually it evolves
over a period of time from the internal and external environment, management pattern and
many other things within and outside the organization. The change in ownership and
management also has an effect on the culture of an organization. As such, to assess the culture
of my organization Habib Bank Limited, it is important to know about the origin and
development of the organization.

Before the division of subcontinent at the encouragement of Muhammad Ali Jinnah, Mr.
Dawood Habib of famous Habib family established this bank in 1941 in Mumbai with an initial
capital of Rs. 25000 only. The main objective of establishing a new bank was to contribute
towards the development of the muslim community of India. Later in 1947 the Head Office of
the bank was transferred to Karachi, the then capital of the undivided Pakistan and operated up
to 1974 as a private sector commercial bank managed by Habib family. In 1974 the bank was
nationalized by the govt. and took over the charge of the management. In 2005 the bank was
again handed over to private sector and Aga Khan Foundation for Economic Development
purchased 51% of the bank for US$389 million and since the bank has become one of the
largest bank of the Southeast Asia with more than 1700 domestic and 55 overseas branches.

After independence HBL resumed operations in Bangladesh in 1976 with establishing 2
branches at Dhaka and Chittagong. At present HBL has 5 branches in Dhaka, Chittagong and

Physical Structure:

The Head Office of Habib Bank is located at Habib Bank Plaza, in Karachi, Pakistan. It was
Pakistan's tallest building upon completion in 1963. It remained the tallest building for 4
decades until the 116m tall MCB Tower was completed in 2005. However, even after the MCB
Tower, the Habib Bank Plaza is still the second highest building in Karachi today. This building is
located at one of the most prominent area of karachi, the business capital of Pakistan. The
branches of Bangladesh are also located at the prominent places of three main cities of the
country. The Head Office is located at Moyeen Centre, Gulshan which has now become the first
choice of corporate houses to establish their corporate office.

My Gulshan branch is located at Capita South Avenue Tower right on the Gulshan Avenue
which is the destination of the many other banks and corporate houses of the country. The
building is well designed with an underground parking to accommodate the parking space to
park the cars of the employees, although there are not enough parking spaces for the
customers of the bank. Actually it is very difficult for a bank to arrange parking facility for all the
customers since banks are one of the busiest offices in the corporate world. This lacking some
time create problem as the customers park their cars on the road which causes traffic jam and
public nuisance. The office lay out does not permit any scope of entertainment for the
employees. Some scope of entertainment both for the employees and customers will definitely
increase the quality of services which the management did not take into consideration.

Symbol and Logo:

Symbol of HBL contains Bismillah at the top, Sword under Bismilah and then Lion under the
sword. This symbol depicts : Bismillah – Islamic culture and values, Sword – power, Lion –
Strength; HBL brand name and ‘ Power to lead’ is the slogan of Habib Bank Limited. This slogan
and logo is displayed in the premises of the bank also in the advertisements of the bank. All the
Cheques, Deposit slips and stationeries of HBL contain this slogan and logo of HBL. Although
this logo indicates that the bank very much with the Islamic values and cultures but there is a
serious controversy all over Pakistan and other muslim countries whether ‘Bismillah’ should be
in the logo or not. Because banks are doing the business of interest which is strictly prohibited
in islam and Bismillah should not be used in the logo of an interest earning organization.

The culture of HBL can be well understood from the Vision, Mission and core values of the
organization which are defined below:

Excellence: This is at the core of everything we do. The markets in which we operate are
becoming increasingly competitive, giving our customers an abundance of choice. Only through
being the very best - in terms of the service we offer, our products and premises - can we hope
to be successful and grow.

Integrity: HBL is the leading bank in Pakistan with substantial overseas presence and our
success depends upon trust. Our customers - and society in general - expect us to possess and
steadfastly adhere to high moral principles and professional standards.

Customer Focus: We understand fully the needs of our customers and adapt our products and
services to meet these. We always strive to put the satisfaction of our customers first.

Meritocracy: We believe in giving opportunities and advantages to our employees on the basis
of their ability. We believe in rewarding achievement and in providing first-class career
opportunities for all.

Progressiveness: We believe in the advancement of society through the adoption of
enlightened working practices, innovative new products and processes, and a spirit of

HBL as a bank strives for excellence with integrity for achieving customer satisfaction by
providing the employees reward as per their merit and ability with a view to attain social
advance as the ultimate goal.
Internal atmosphere:

The working atmosphere is worm and cordial in the organization. There is a common dinning
place for all the employees of the branch which helps to come across the employees of other
departments of the branch. Sometimes they discuss with the current trend and issues of the
market. The Regional General Manger, who is the head of South Asia region, is a person with
very good sense of humor. He often uses jokes and witty dialogues while talking with the other
employees. He is serving the bank for more than 20 years and he often shares his experience
about the emergence and growth of HBL; how it has become the largest bank of Pakistan and
one of the top banks in the Southeast Asia from starting with an initial capital of Rs. 25,000
only. The success and achievements of the bank are also celebrated with the employees which
always motivates the employees to perform better. HBL Bangladesh arranges yearly picnic for
the employees which is a great platform for the employees of different branches to come
across each other. Moreover, on this occasion employees can place their issues and demands to
the top management.

Policies and Activities:

Being a Private commercial bank it is important for HBL to achieve customer as well as
employee satisfaction. HBL is used to recruit experience employees of other banks with a
higher salary and packages and to retain them. The employees are given cash award on the
basis of their performance at the end of every financial year on the basis of their performance.
Branch Managers and marketing people are directly responsible for achieving the targeted
budget. From this point, HBL belongs to omnipotent view of management. But in case of
recruitment, they never recruit entry level MTO batches for Bangladesh. This policy not only
makes them to bear extra cost but also is responsible for the less bondage of the employees
towards the organization. Once the employees get any better offer from other banks they do
not hesitate to switch over as they do not have enough bondage to this bank. That’s why
employee turnover is very high in Habib Bank Limited.

For customer satisfaction product diversity is a must for a banking organization. But HBL deals
only with few products in Bangladesh. Although in Pakistan they have variety of products, in
Bangladesh operation they are yet to bring enough diversity in their product diversity. For
example, they are yet to introduce retail products like Credit Cards, consumer Loans etc. in
Bangladesh which helps to increase the customer base. In the field of corporate banking, HBL is
very much skeptic about Long Term Financing. For this reason they have not been able to
achieve the trust of the customers as the other foreign and multinational banks have done.
Customers are also skeptic about their long term presence here as it is a Pakistani Bank and
Pakistan has a very adverse image among the people here in Bangladesh. This policy has
restrained them from having a diversified and loyal customer base in Bangladesh. Basically they
are satisfied with a limited number of customers and thus losing the opportunity of capturing
the highly profitable banking market of Bangladesh.


Organizational culture evolves from the behavior and practice of both the employees and
management of the organization over a period of time. To build up a strong culture it is
necessary to have a good number of employees work together for a long time with satisfaction.
HBL Bangladesh although have a good working atmosphere but they could not build up a strong
organizational culture since the employee turnover is very high here. To build up a strong
culture they should recruit their own work force at the entry level who will better inherit the
culture of the organization than the employees coming from other organizations.

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