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Report: Meezan Bank

Group members
M. Shoaib Farooqi (13693)
Anas Yasir (15207)
Asiya Phull (15294)
Maheera Aijaz (15181)

Course
Human Resource Theory & Practice

Submitted to
Dr. Samina Qasim

Submitted on
21st May, 2020

Acknowledgement
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We are highly obliged to our teacher who introduced us to the Methodology of work and
gave us guidance, support and encouragement regarding the completion of our project.

In our project, we had to take the help and guideline of some respected people, who
deserve our utmost gratitude. We would also like to thank all those who have directly and
indirectly guided us in the completion of this project.

Nevertheless, it would not have been possible without the kind support, co-operation and
encouragement of our group members whose valuable suggestions made it possible to
complete the project within the given time.
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Executive Summary
This report displays an effort to explore the HR Department. It gives an overview of how
the employees are recruited, the nature of training and development programs of the
organizations and how it motivates its employees by performance appraisal. For this
purpose, Meezan Bank has been taken and its HR activities regarding organizational
design and training and development have been thoroughly observed.

The first part of the report gives a clear picture of the organizational design of Meezan
Bank which is a fine mix of the selected features of the culture and structure of Meezan
Bank. This organizational design assists in the definition and achievements of the goals
for managers.

In the second part, the recruitment and selection, training and development programs,
performance appraisal techniques and strategies of Meezan Bank have been investigated
which shows that the recruitment and appraisal methods and tools used by them are very
much relevant and in association with the departmental hierarchy and structure.

In conclusion, the Bank has been given some suggestions and recommendations
regarding the recruitment and selection, training and development and performance
appraisal methods which can also be used other than those that the company is currently
using so that employees are more motivated and efficiency of the company increases.
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Table of Contents

S. No Contents Pg #
1. Acknowledgement 2
2. Executive Summary 3
3. Introduction 5
4. Vision, Mission, Policies 6
5. Organogram 8
6 Section I: Recruitment and Selection 9
7. Section II: Training and Development 11
8. Section III: Performance Appraisal 13
9. Recommendation 14
10. Appendix A 15
11. Appendix B 17
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Introduction to Meezan Bank

Meezan Bank, Pakistan’s first and largest Islamic bank, is a publicly listed company with
a paid-up capital of Rs. 10 billion. It is one of the fastest growing financial institutions in
the banking sector of the country. The Bank commenced operations in 2002, after being
issued the first-ever Islamic commercial banking license by the State Bank of Pakistan.
According to the recent statement of financial position at September.30 2017, the number
of Total Assets of Meezan bank are PKR 706,167 Million, Deposits and other accounts
amounted as PKR 607,232 Million, Share Capital amounted as PKR 10.027 Million,
Shareholders' Equity is PKR 32,701 Million. Similarly, the Bank provides a
comprehensive range of Islamic banking products and services through a retail banking
network of more than 600 branches in more than 150 cities of operation in the country
where the no. of staff is 9,300.

The Bank operates strictly under the principles of Islamic Shariah and is well-recognized
for its product development capability, Islamic banking research and advisory services. In
order to ensure strict Shariah-compliance in all its products and services, the Bank has
established a dedicated Product Development and Shariah Compliance department that
operates under the supervision of the Bank’s in-house Resident Shariah Board Member
and a Shariah Supervisory Board comprising of internationally renowned Shariah
scholars.

Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by
numerous local and international institutions, which is a testimony of the Bank’s
commitment to excellence Asian Awards, Pakistan Banking Awards – Dawn & IBP
Pakistan, Employers Federation of Pakistan and CFA Association - Pakistan.
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Vision
‘Establish Islamic banking as banking of first choice to facilitate the implementation of
an equitable economic system, providing a strong foundation for establishing a fair and
just society for mankind’

Mission
‘To be a premier Islamic bank, offering a one-stop shop for innovative value-added
products and services to our customers within the bounds of Shariah, while optimizing
the stakeholders value through an organizational culture based on learning, fairness,
respect for individual enterprise and performance’.

Policies and Regulations

Our group acknowledged in the wake of going to the Meezan bank that they are giving
their representatives different advantages and a few auxiliaries to fulfill the requirements
of their representatives additionally they let us know about the values of their
organization as ‘Shariah-compliance, Integrity, Professionalism, Innovation, Service
Excellence, Social Responsibility. Staff that is committed, motivated and professionally
trained and who are empathic to their customers’ needs’. Meezan bank has faith in a
group execution and allows new comers to be the part of their firm and attempt overall to
achieve the association's target. Usually in group execution they find out the HR issues
which can leads to the lower productivity and cause many other issues.

Values
Core Values:
 Shariah-compliance
 Integrity
 Professionalism
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 Innovation
 Service
 Excellence

Competitors:
Meezan Bank Limited is a private commercial bank so its major competitors are:
 Muslim Commercial Bank
 Standard Chartered
 Soneri Bank Ltd
 The Bank of Punjab
 Bank Al-Habib Ltd
 ABL
 Faysal Bank Ltd
 NIB

Branch Network:
Alhamdulillah, with more than 550 branches in more than 140 urban communities across
Pakistan, Meezan Bank is the biggest Islamic Bank and the seventh biggest Bank (as far
as Branch Network) in Pakistan. This is an achievement that isn't just an example of
overcoming adversity of Meezan Bank yet additionally the proceeding with an example
of overcoming adversity of Islamic banking in Pakistan. With this broad system, our
current and potential clients are presently nearer than at any other time in profiting by
Islamic Banking at their doorstep. All branches give constant web-based financial offices
to clients.
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Organogram
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Section I
Recruitment and Selection
Meezan Bank Ltd. Mostly prefers internal hiring. Succession planning is the process to
identify and track high-potential employees who will be able to fill top management
positions when they become available. During internal hiring, it plays a very significant
role. Although, there are some priorities set for the decision making regarding recruitment
like education and experience, prior progress and growth, employment stability,
likelihood of success, etc.

Recruitment in the bank is done in many ways like:

 Batch Hiring
 Job posting
 Rehiring
 Succession planning
 Experience Hiring
 Referrals and walk-ins
 Virtual Job Fairs
 Employment agencies
 Social Media posts and LinkedIn

When employing a candidate for the position, the first thing mostly focused is their
dressing, their body language, their confidence, body posture and everything that would
make their personality suitable for the position. Meezan Bank has a lot of employee
testing methods but the best testing method is the Pre-employment skill testing. Meezan
Bank’s view on pre employment testing is that it is for ideal situations and not cost
effective the employees are observed without being hired. Equal employment opportunity
is a policy that requires that employers do not categorize against employees and job
applicants based upon certain characteristics, such as age, race, color, creed, sex, religion,
and disability.
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HR forecasting technique means foretelling labor needs and the effects they'll have on a
business. Ratio-Trend Analysis is the most used HR forecasting technique in Meezan
Bank. In this technique, past ratios are studied and future ratios are forecasted.

The credentials like the personal information of employees, contacts, marital status,
health issues, etc are kept confidential and only available to those HR executives who are
authorized to work on them. It is made sure that the employees are kept highly
confidential and their information is never revealed.

Even after the selection, some people do not join the organization because they probably
might have gotten a better opportunity and they wouldn’t find the current position
suitable for themselves.
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Section II
Training and Development
In Meezan Bank Ltd., employees are promoted as per the policy and it is made sure that
the employees have all the skills that they must possess. External factors are things or
events that influence HRM either directly or indirectly. These external factors can be
broadly categorized as the social and cultural, technological, economic, political and legal
environments.

It is always made sure that the employees have gone through all the necessary tests and
workshops in order to perform well. Testing is very necessary for firm because if the
employees are not tested thoroughly, they will not perform well in the future run in the
company.

In order to improve the performance, training sessions, workshops, job rotations are set
up. Training the employees is very essential. They all are judged on their previous
performance. A human being needs to be groomed time to time hence the employees are
in the process of learning and improving on daily basis. The performance of employees is
judged on how well they have been performing for the previous years, according to that
we move the employee to the upper level. And if the employee has not been performing
well, he/she is demoted to the lower level.

Latest training trends are need to be followed, we find new and creative methods to train
our employees in a way that they understand the market with the latest technology. The
bank also needs to stay updated regarding the latest training and development programs
and keep them self-updated of the general knowledge of the market as well as the firm
which makes a great difference on the team.

For a typical MBO program for individual employees: following are the steps:

 Every manager must have 5-10 goals expressed in specific, measurable terms
 Manager can propose their goals in writing, which will be finalized after review
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 Each goal needs to include a description and a clear plan (list of tasks) to
accomplish it
 Determine how progress will be measured and how frequently (minimum
quarterly)
 List down corrective actions that will be taken if progress is not in accordance
with plans
 Ensure that goals at each level are related to the organizational objectives and
levels above/below
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Section III
Performance Appraisal
Performance Appraisal is one of the most important factors in the efficiency of work done
by the employees. Meezan Bank Ltd. has several methods of performance appraisal as
follows:

 360-Degree Feedback: Employees are given anonymous feedback from their

fellow employees and managers.
 Assessment Centre Method: Employees are evaluated in a systematic order as per
their behavior based on multiple criteria.
 Behaviorally Anchored Rating Scale (BARS): Employees are rated by a scale
according to their performance and specific behavioral patterns.
 Psychological Appraisals.
 Human-Resource (Cost) Accounting Method: It is a method which measures the
costs incurred by business firms and other organizations to recruit, select, hire,
train, and develop human assets. It also involves measuring the economic value of
people to the organization.

Meezan Bank Ltd. ensures job stability, bonuses and increments in order to reduce the
employee turnover ratio. A good employee should have good decision making skills,
should be able to work well a team and be more efficient for the organization.

Feedbacks are always important and negative feedback is always the positive feedback. It
helps groom employees further, makes them learn from the mistakes and tends to
improve them in the future run.
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Recommendations
This report examined the impact of HRM practices including Recruitment & Selection,
Training & Development and Performance Appraisal. Ample recruitment and selection
practices need to be adopted to make sure that hiring process is transparent and fair. It is
recommended that future researchers require studying the relationship of HRM practices
and job satisfaction.
Despite procedures of recruitment and Selection practiced, there is always a need for
improvement, which can be done by encouraging internal transfers which is the
promotion of junior employees to the senior positions during cases of vacancy offered. It
will improve employee retention and will boost the morale of their employees
Exposure of international visits granting to employees where they can earn experience
working in international companies with better technology will hone their skills and will
build their command over a number of things, which will also help employees in
attaining bigger positions in the future. In the situation of poor performance of
employees, they should rather be giving training than demoted as it may demotivate them
and they may quit the company. Simultaneously, an increase in the turnover ratio of
employees would be seen. Employee retention should be worked on and made sure.
The introduction of incentivized bonus programs will bring the best out of employees.
Secondly, financing employees for their further education to groom their staff may
project great source of interest for them and will prepare employees for the future of the
organization.
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Appendix A
Interview Questions
 Describe the different performance Appraisal Matter?
 The external environment factors directly affect the HRM process?
 Describe the steps for typical MBO program from individual employees?
 What your company prefer internal hiring or external?
 If you saw employee with good quality skill did you promote if don’t what your
company do?
 Did your company access every person from lower to upper level?
 Did your company take test of your employees or send them out for workshop?
 If the employee behavior is poor what your company do?
 Which of the following sauces are recruitment in Organization?
 Which of the following below are priorities on decision making for recruitment?
 How does your organization perform succession planning? Preference is internal or
external for top management positions. ?
 What is your Employment Turnover Ratio?? Increasing or decreasing? How do you
maintain the balance?
 Which of the following is organization preference when recruitment is open?
 What are the organization precautions in securing employee personal information e.g.
contacts, marital status, health issues?
 What are your employee forecasting strategies?
 What are your methods for Equal Opportunity Employment?
 According to you, what may be the reason for not joining after the selection of
candidates?
 What do you first notice about a person?
 What behaviors do the most successful members of the team exhibit?
 In what ways are you involved with personnel after hiring?
 What are the constraints that you face in the selection of the candidates?
 What is your view on pre-employment testing?
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 Which testing method is more preferred by you?

 How did you balance productivity and fun with your co-workers?
 When you recommend something to the manager, what approach do you usually use?
 Why do you want a career in training and development?
 Have you ever trained one of your superiors? How did you handle it?
 How do you respond to negative feedback?
 How do you keep up with the latest trends in employee training?
 What strengths help you make the greatest difference on the team?
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Appendix B
Information of the interviewers and interviewees
Interviewees
Syed Zulfiqar Haider
Vice President/ Branch Manager
Cell: (92-300) 028882
Direct: (92-21) 34655860
E-mail: Zulfiqarhaider882@meezanbank.com

Interviewers
M. Shoaib Farooqi
Cell: 0335-2160479
E-mail: shoaibfarooqi76@yahoo.com

Anus Yasir
Cell: 0324-2967144
E-mail: anasyasir1@gmail.com