HAMDARD INSTITUTE OF MANAGEMENT SCIENCES

Recruitment & Selection

Term Report On

“Recrutiment & Selection Policies of United Bank Ltd.”

SUBMITTED TO:

ACKNOWLEDGEMENT

We are highly obliged to Allah who gave us the strength and showered His blessings over us because of which we were able to complete this report in time.

In addition to that we would like to thank the teacher Ms. Mona to provide us with an opportunity to open our minds, observe, interact and learn. And of course our special thanks to the executives who understood our requirements and took out some time out of their bustling schedules, and equipped us with the substantial material

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UNITED BANK LIMITED – AN INTRODUCTION:

United Bank Limited is the second largest Private Commercial Banks of Pakistan. UBL has assets of over Rs.300 billion and a solid track record of forty six years - in addition to the convenience of over 1000 branches serving customers throughout the country and also at several overseas locations. UBL follows the strategy of Non-Commercial Stock (NCS).

Some Important Facts About :

Date Established: November 7, 1959Chairman: His Highness Sheikh Nahayan Mabarak Al NahayanDeputy Chairman: Sir Mohammed Anwar Pervez OBEPresident & CEO: Mr. Atif R. BokhariBranches: 1056 Domestic, 15 Overseas BranchesRepresentative Offices: TehranSubsidiary: United Bank AG Zurich, Switzerland; United National Bank Limited, UK (Joint venture with NBP); UBL Fund Managers LimitedAssociated Company: Oman United Exchange Company, MuscatOffshore Banking Unit: Export Processing Zone, EPZ Branch, Karachi, PakistanHead Office: I.I. Chundrigar Road, Karachi, Pakistan

Offers Services In Following Areas:

Consumer Banking Commercial Banking Corporate Banking Investment Banking Treasury Banking

United Bank Ltd. maintains its position as Pakistan's premier bank determined to set higher standards of achievements. It is the major business partner for the Government of Pakistan with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its large network of branches locally, internationally and representative offices.

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The HR Group at UBL currently comprises of six divisions namely HR Management, HR Services, Strategic Projects, Training and Organizational Development, Employee Relations, and Middle East HR. These divisions of HR Department are currently looking after the Core HR activities of UBL’s 9000 plus employees. The Middle East HR Division has its dotted reporting to the Head of HR based in Head Office, Karachi

Mission of UBL:

Set the highest industry standard for quality across all areas of operation, on a sustained basis.Growth through creation of sustainable relationships with our customers.Optimize people, processes and technology to deliver the best possible financial solutions to our customers.Become the most sought after investment.Prudence to guide our business conduct. Be recognized as the employer of choice.

Vision of UBL:

Meeting ever growing standards.Consistent in our growth.Meet expectations through Market-based solutions and products. Best in class in any business we initiate.Reward entrepreneurial efforts. Strive to provide world class service.Your Excpectations-----our Goals.Create value for all stakeholders.Wow impact on every encounter.

Relationship Banking

This forms the pillar of our strategy as it is the primary tool towards providing you full satisfaction. Relationship Banking involves:

Assessing and understanding customer needsProviding you advice on your business needsHelping you find viable financial solutions for your business problemsActing as the primary contact for you

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FUNCTIONS OF HUMAN RESOURCE GROUP:

The HR Group at UBL is responsible for coordinating the recruitment and hiring of employees. It also administers such things as promotions, reassignments, salary determination, position classification and grading, performance appraisal review and processing, awards review and processing, personnel data entry and records maintenance, policy development and so on. Following are the major functions (category wise) performed by the HR Group of UBL:

Human Resources Planning:Forecasting Maintaining personnel inventories Succession planning Modeling career paths

Employment:Recruitment Selection Orientation

Training & Development:Devising  programsPrimary Skills Training Advanced Skills Training

HR Audits:   Employee turnover Grievances Attendance Accidents Compliance with federal and state regulations

Discipline:Formulation and coordination of policies Assistance and advice in major disciplinary actions

Personnel Research:Administering opinion surveys Conducting HR Audits Publishing statistical analysis

Safety:Overseeing security Physical Environment Conducting accident investigations

Medical & Health:  

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Conducting health  and wellness programs

Employee Benefits:   Design of vacation & sick benefits program Administering policyHealth insurance

Compensation:Incentive pay plans Job analysis Job evaluations Wage surveys Performance reviews

Performance Appraisals:Performance standardsMeasuring employee performance according to the set standards

Employee Relations:   Hearing employee concerns and complaints Monitoring morale

FUNCTIONS OF HR MANAGEMENT DIVISION:

The broad objective of HR Management Division is to ensure the recruitment against vacant positions while being a Strategic Partner to all the Business Groups. The objective of this division is to provide continuing support to the efforts towards employer branding, both internally and externally in order to enhance the image of the Bank and be the Employer of Choice.

To highlight, following are the major functions performed by HR Management Division at UBL:

Support for Recruitmento Entry Level Hires;o Mid Career Hires;o Management Trainees;

Manpower Budgeting & Forecasting for the regional businesses;Transfers;Job descriptions of Branch Operations staff;Organizational Headcount Matrix for the region;Providing regional input for the formulation & revamping of HR policies;Internship Program Coordination;Facilitation in Training Needs Assessment;Exit Interviews & expediting the resignation process;

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Utilization of all available modes of hiring to recruit employees at all levels on the basis of transparent screening process;Identification of new sources of recruitment in order to attract the best talent available in the industry both at local levels and international levels;Build up UBL’s image in order to become the Employer of Choice;Liaising with various Business Groups to chart out future resource needs based on the group’s strategic vision;Filling the organization’s resource needs by way of internal rotations (Resourcing);Induction of Management Trainees to take on the role of Change Agents with in UBL. At the same time facilitate the Rotations/Appraisals for the existing Management Trainees;Reorganizations by way of assisting Departments in their organization and restructuring of existing positions in the organizational charts as well as job descriptions;Track the Attrition activity within the organization by way of Analysis (market based surveys), Management reviews and Employee Surveys (with reference to attrition, salaries, market adjustment, rotations etc).

Grade Definition: (Human Resource Management)

Written description of the level of, say, responsibility and knowledge required by jobs in each grade is known as Grade Definition. Similar jobs can then by combined into grades or classes.

This concept also in practice in UBL. They have grades such as Group Executive (GE), Vice President (VP), Assistant Vice President (AVP), Senior Executive Vice President (SEVP), Senior Vice President (SVP), Officer Grade – I (OG-I), Officer Grade – II (OG-II), and Officer Grade – III (OG-III).

RELATION OF FUNCTIONS OF HR GROUP TO THE CORPORATE OBJECTIVES:

The functions of HR, mentioned are the tools which help HR contribute towards the business objectives of UBL. This is where strategic HR comes into play.

Strategic HR is when HR is involved in setting business objectives with the perspective of strategizing the Human Assets which will enable achievement of any goals set for the business there on.

Human Resource Group of UBL contributes to the corporate objectives in many ways. For example: one of the business objectives of UBL is to be the lowest

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cost producer. For attaining this objective, HR thrives to hire quality people at lower costs that is low hiring cost, low training costs, and so on.

Another objective of UBL is to be a world class brand which means to be innovative, aspiration-al and consistent. To achieve this objective, it is responsibility of HR to recruit the best people for the bank out of the huge pool which is there in the market. Moreover, these people should be flexible enough so that they can be trained and developed according to the changing needs of the business.

For generating consistent results and for maintaining strong growth, it is the job of HR to provide those people to business who are capable of understanding business operations well and who believe in achieving their own objectives.

In a nutshell, the functions of HR are the backbone which supports all other functions of a business and which enable HR to contribute to the business objectives of UBL.

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RECRUITMENT AND SELECTION PROCESS:

Job Descriptions: (Human Resource Management)

The concept of Job Description is the document which tells that what the job will entail, what will be the duties to be performed on the job, what will be the working conditions of the job, what behaviors and attitudes will be required on the job, and with whom the job holder will have relations on the job.

This concept helps a lot in classifying job descriptions according to the various departments of the bank.

Curriculum Vitae Or Resume: (Human Resource Management )

A Curriculum Vitae is the document which describes a person, who he is, what he has done, what work experience does he have, what are his interests and how his personality is. In other words, it is a document that defines a person and his achievements in his professional career.

Recruitment Process:

Step 1: Whenever there is any vacant position or a new position is formed, the first step is to fill out a 'Staff Requisition Form' by the immediate supervisor of that position.

Step 2: Next, all the qualified candidates are required to fill out 'UBL's Blue Form' which is just like an application form. Along with this, all the candidates are required to provide the necessary document such as Matriculation Certificate, Inter Certificate, Bachelors Degree, Masters Degree (where applicable), Experience Letter, Salary Slip, and other documents.

Step 3: Upon selection of the people who are thought to be the best fit for the job and the organization, these people are called on for two Business Interviews. (Business Interviews are those interviews which are conducted by the concerned department).

Step 4: When a person is selected by the concerned department after the two business interviews, he is sent to the HR Department for further

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verification and a final Interview with the HR Department. Thus, to count, there are three interviews for any position in UBL.

Step 5: After the three interviews, the approved candidate is then sent for the Medical Examination to the doctor's specified by UBL.

Step 6: Once a candidate is marked 'Fit' by the doctors, 'Hiring Approval Form' is made which is approved and signed by three heads.

Step 7: The final step in the recruitment and selection process is the issuance of 'Appointment Letter' to the candidate.

The above mentioned process is for the jobs of mid-career level. For entry level positions, or for Management Trainee Program, the recruitment and selection process at UBL is entirely different.

Types of Recruitment:

Internal Recruitment:Before starting the recruitment and selection process the organization should analyze whether they really need recruitment. The Bank first analyzes the existing situation whether it is must to go for external recruitment or they can do it internally.Internal recruitment is made by bank if the required skills & expertise required for the job are available within the bank. The internal recruitment is normally up to the SVP position.If internal recruitment has to be done then the advertisement is circulated to all employees of the bank inviting the applications if they fulfill the criteria required for the job. They are also interviewed by the interviewing committee for the assessment of suitability of their job.

External Recruitment:

If the bank did not find suitable skills & expertise internally then the go for the external recruitment. The external recruitment is done through advertisements in news paper and through recruitment agencies. For the position like SEVP the bank have to do the external recruitment.

Promotional Activities For Recruitment:

Advertisement of Positions

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UBL mostly goes for the advertisement for permanent positions through print media but with some exceptions and those positions not subject to permanent employment shall normally be advertised through print media and if the bank do not receive any application against their advertisement then the vacancies are advertised through the Recruiter’s website by mentioning the name of the bank with exact title/ position for the job but not exactly about the permanent employment or 3rd party contractual. A minimum period of 20 days is allowed for the processing of applications therefore they use different media in order to find a quick response.

Recruitment Agencies:

UBL usually for the higher level positions look for the consultation with the respective names of the audit lines for the recommendation of hiring in the position of Executive levels,usually the Audit firm Taseer Hadi Associates recruits the high caliber professionals for the United Bank Ltd.. They follow the Recruitment Policy already approved by the Board of United Bank Ltd..

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Selection Process:

The United Bank Ltd. has a selection process to ensure:

Invitation of applications from eligible candidates;Screening on the basis of defined criteria;Ranking and short listing in an objective manner; andSelection of the most suitable candidates.

Phase 1: Recruitment and Selection:

Objective of Recruitment:

United Bank Ltd. recruit people with the required basic knowledge, ability, skills and attitude and can be relied upon to continuously enhance and apply their competence to the achievement of the bank’s mission and objectives.

The first phase of three sub-phases. The first one is the Initial Screening Interview. A candidate passing this interview is qualified for the Assessment Center. An assessment center is a test of an individual’s personality as well as his or her abilities. Candidates passing assessment center are qualified for the Panel Interview. The main purpose of the panel interview is to assess the individual’s capacity and proclivity. The decision taken by the panel for short listing is the final decision.

Employee Orientation: (Recruitment and Selection)

A procedure for providing new employees with basic background information about the organization is known as employee orientation.

This concept, of Recruitment and Selection Course, is widely accepted and used at UBL. This method of introducing an employee or intern to the department and organization helps a lot in building relations and understanding work. The supervisor introduces to everyone who are related to the field which helps a lot me in building the relations with everyone at work.

Phase 2: Training and Development: After clearing the assessment center and panel interview, the candidates have to go through extensive training and work assignments of 6-8 weeks.

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The in-house training is conducted by Seasoned Professionals (both internal and external).

Phase 3: Rotation: UBL allows candidates to learn about the entire bank operations before entering a specific business segment.

Phase 4: Departmental Placement: After 15 months of extensive training and rotation, the candidates are placed in the departments. Candidates are first evaluated for increments after 12 months of rotation. Three months subsequent to that, they are evaluated for the promotions on the basis of the results provided by the functions throughout the process of their training, rotation and placement.

While recruiting UBL emphasizes on:

Recruitment Planning: United Bank Ltd. do the recruitment planning to fill vacancies after due consideration of any available surplus, projected business requirements and normal attrition;

Equal Employment Opportunity: United Bank Ltd. provides equal employment opportunity to minorities, women and men at approximately their rate of availability and in line with legal requirements as to quotas.

Transparent Selection Process: United Bank Ltd. has a transparent selection process that promotes open competition and provides a fair chance of success to the most appropriate candidates.

Assessment Centers: (Employee Training and Development)

Assessment Center is a written test which aims at testing candidates on the qualification they have. It basically consists of various types of exercises to see whether an individual is capable of becoming a good manager in the future or not.

This was widely practiced at UBL for the selection of candidates. This test consists of a verbal section, quantitative section, general knowledge section and an in-tray exercises section.

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Types of interview UBL conduct during Selection Process

Exit Interviews: (Recruitment and Selection)

Interviews with employees who are leaving the organization, conducted for the purpose of obtaining information about the job or related matters, to give the employer insight about the organization.

This concept, learnt in the above mentioned course, also gets practice at UBL. For all the permanent employees, it is a necessary requirement that if they leave the job, they are supposed to go through an Exit Interview, conducted by the HR Department.

Initial Screening Interviews: (Recruitment and Selection)

This is a type of interview generally conducted to screen out those people who do not even stand equal to the minimum qualifications of the job or position. This interview is usually conducted as a first or second step of the hiring process.

At UBL, Initial Screening Interviews were conducted for almost all the jobs or positions but especially for the entry-level positions. During my internship, an example of initial screening interview which I saw was the MT Program. HR managers from UBL went to all the business schools (accepted by their criteria) for the initial screening interviews of the candidates who applied for the MT Program.

Interview Evaluation Forms: (Human Resource Management)

Interview Evaluation Forms are the forms of pre – set format to evaluate a candidate during an interview. At UBL, it was mandatory to attach three interview sheets (filled) with any permanent hiring case. That is, without the three interview sheets, a file for the candidate is not supposed to be a complete.

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Forms used For Hiring Purposes

Staff Requisition Form:

Staff Requisition Form is used at UBL for all the positions that are vacant or which require a new employee. It is basically an official form on which a request in made, that is, first you have to fill out the requisition and then the HR department can start a hiring process for a new job. Thus Staff Requisition Form is the first step to start a hiring process.

Hiring Approval Form:

A new concept which came across me during my internship was of ‘Hiring Approval Form.’ This is a kind of form which is filled out when a candidate is selected in the interviews and on the basis of other qualification, by the concerned department and HR department. It is necessary to have three signatures on this form for a candidate to be hired, that is, one signature from the group head, second from the departmental head, and the third one from the immediate supervisor. Hiring Approval Form is a mandatory requirement for a candidate to be hired.

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Conclusion:

The HR department of UBL deeply focuses over the Recruitment & Selection Process and it was a very rich experience for us to visit United Bank Ltd. Rich in a sense that the information we get was to detailed and we actually found there the practical implication of whatever we have studied yet in the Human Resource Management and when we started examining how the recruitment department functions at the Bank. We came to know about their process of recruitment & selection. They mostly prefer the print media in case of advertising the job vacancies otherwise due to the shortage of time in case of less response or job applications they consult the Recruiter’s websites. However in case of executive hiring they consult the auditing firms according to their approved panel list and in some exceptional cases where highly technical positions are required to be filled then, the job of hiring a suitable professional is assigned to professional recruitment agencies or head hunting firms.

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Recommendations For :

We by considering our studies found the recruitment and selection process at UBL quite viable but as the business always requires “a change” we would recommend some important facts which would help UBL in further prospering their line of business and hiring skilled personnel:

United Bank Limited should use online system in case of applications for their available openings.UBL should look for some Universities Student profile in case of Fresh Graduate Hiring.The selection criteria should be broad enough that would not only consider the experience but also look into the other interpersonal skills and the adaptability of candidate.UBL should use multiple sources of advertisement in advertising job openings.

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