HUMAN RESOURCE PROBLEMS AT SONERI BANK LTD.

PREPARED BY: Dr. Anjum Younus 11683

Term Report Company: Soneri Bank Limited Submitted to: Mr. Shah Saad Hasan Submitted by: Dr. Anjum Younus ID: 11683 Human Resource Management

LETTER OF TRANSMITTAL
December 22, 2012 Shah Saad Hussain, Faculty, Human Resource Management Department, Institute of Business Management Korangi Creek Karachi-75190 Dear Sir, I feel proud to present you the term report of Human Resource Problems at Soneri Bank Limited as attached. The report presents the Human Resource Problems of Soneri Bank Limited. I have conducted detailed analysis of the relevant aspects pertaining to Human Resource Problems in the mentioned organization. For this purpose interviews were conducted with the staff of SBL and general research on the internet was performed. The employee feedback of both the organizations was also taken. The report discusses the findings of our study along with our own assessments of the organizations. Performing this analysis increased learning about the organizations in various aspects which will surely benefit me in my professional life. Sincerely, Dr. Anjum Younus (11683) MBA (Health and Hospital Management) Institute of Business Management, Karachi.

LETTER OF ACKNOWLEDGEMENT

December 22, 2012 Shah Saad Hussain, Faculty, Human Resource Management Department, Institute of Business Management Korangi Creek Karachi-75190 Dear Sir:

This is to inform you that I, hereby, am submitting the term report of Human Resource Problems at Soneri Bank Limited as attached.

I am grateful to Almighty, who enabled me to undertake this task and bestowed upon me, His great blessings all the way through. I am highly grateful to you for your valuable time and help that you rendered in spite of your busy schedule and for your precious guidance at every step. You have been a source of enthusiasm and courage which kept me energetic during the whole semester. The knowledge shared is priceless and would remain there with us throughout the life.

Sincerely,

Dr. Anjum Younus (11683) MBA (Health and Hospital Management) Institute of Business Management, Karachi.

EXECUTIVE SUMMARY
Human Resource is the most valuable asset for a business. Managing human resource well can give the company a competitive advantage. With growing interest towards managing people, companies are now paying more attention to addressing human resource problems to get and retain the best people to work for the organization. Despite this, every organization is confronted with problems related to managing human resource which affect all of the other operations of the company. Soneri Bank Limited is engaged in Banking Services. The HR strategy is in line with the organizational strategy of growth and diversification which is indicated by the

introduction of new banking services and hiring of more technical staff to satisfy banking and customer needs Major Human Resource Problems of Soneri Bank Limited include High Turnover Rate. When an employee leaves an organization, the organization loses precious skills, techniques and knowledge that are otherwise employed while the employee is working for the company. Besides, retention of employees is highly critical for a company because company spends lot of cost on training employees and develops their competencies to help them deliver their best inputs at work. But if there are so many things that the company offers to the employee, then what makes the employee leave the organization? The answer lies in research studies conducted on employees of different organization which revealed that high turnover rate is directly proportional to job dissatisfaction, job stress and imbalance between work and life. SBL is confronted with high turnover rate problem which is 17% per annum. This high rate is due to lack of proper retention strategy, lack of grievance handling policies because of which grievances are not answered within the specific time which pushes the employee leave the company. High turnover rate is stealing HRs valuable time in constant recruitment of new
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candidates which itself is a slow process. Separation, recruitment, selection, training, and low productivity costs are to be born by the company which gives the impression in a general perspective that HR is an expensive department and should be demolished. Turnover can be decreased if the company implements a retention strategy in which competitive packages offered to employees with a defined career path for employees, presents a realistic job preview in the interview to the candidate, shows care and support to the employees when needed and conducts frequent employees surveys to ascertain how employees feel about the company. Action plan of 6 moths or more involving HR staff and immediate supervisors can help to recoup. A constant check is required to monitor the progress towards set goal to prevent deviations from what is to be achieved.

Table of Contents
HISTORY OF SONERI BANK LIMITED ................................................................................................................11 History of Rupali Group: ..............................................................................................................................11 BANK INTRODUCTION .................................................................................................................................12 VISION STATEMENT .................................................................................................................................13 MISSION STATEMENT ..............................................................................................................................13 Credit rating: ...............................................................................................................................................13 VALUES ........................................................................................................................................................14 Excellence ....................................................................................................................................................14 Team Spirit ..................................................................................................................................................14 Integrity .......................................................................................................................................................14 Professionalism ...........................................................................................................................................14 Transparency ...............................................................................................................................................14 SHARE HOLDER INFORMATION .......................................................................................................................15 ASSOCIATED COMPANIES............................................................................................................................15 PATTERN OF SHARE HOLDING ......................................................................................................................16 PRODUCTS & SERVICES OFFERED ....................................................................................................................17 SPECIAL NOTICE DEPOSITS ..........................................................................................................................17 PLS SONERI BANK LIMITED SAVINGS ACCOUNTS........................................................................................17 PLS TERM DEPOSITS ....................................................................................................................................17 CERTIFICATES OF DEPOSITS.........................................................................................................................18 CURRENT ACCOUNTS ..................................................................................................................................19 ISLAMIC BANKING PRODUCT ......................................................................................................................19 E BANKING & CARDS ...................................................................................................................................20 CONSUMER FINANCING ..............................................................................................................................21 A Complete Banking Experience .....................................................................................................................22 Deposit Products: ........................................................................................................................................22 Trade Finance ..............................................................................................................................................22 Corporate Banking:......................................................................................................................................23 Islamic Banking: ...........................................................................................................................................23 SME Finance: ...............................................................................................................................................23 Consumer Finance: ......................................................................................................................................23 Agricultural Financing:.................................................................................................................................24 8

Bancassurance: ............................................................................................................................................24 Online Banking: ...........................................................................................................................................24 Corporate Governance: ...............................................................................................................................24 BOARD OF DIRECTORS.....................................................................................................................................25 ORGANISATIONAL STRUCTURE .......................................................................................................................27 TOP LEVEL MANAGEMENT ..........................................................................................................................27 MIDDLE & LOWER MANAGEMENT..............................................................................................................28 STRUCTURE OF SONERI BANK HR DEPARTMENT ............................................................................................29 THE HUMAN RESOURCE DEPARTMENT AT SONERI BANK ..............................................................................30 HUMAN RESOURCE MANAGEMENT AT SONERI BANK ...............................................................................30 HRM MISSION STATEMENT .............................................................................................................................32 Human Resource Planning Process (HRPP) ..............................................................................................32 Study for problem analysis ..............................................................................................................................34 Purpose of the study ...................................................................................................................................34 METHODOLOGY...........................................................................................................................................34 DATA COLLECTION METHODS: ....................................................................................................................34 RESULTS .......................................................................................................................................................35 High Turnover Rate: Soneri banks Major HR issue.........................................................................................37 Root- Cause Analysis Of major HR Problem ....................................................................................................40 ROOT CAUSE ANALYSIS OF THE ISSUE OF TURN OVER AT SONERI BANK .......................................................41 IMPACT OF HIGH EMPLOYEE TURNOVER RATE ON COMPANY ..................................................................42 Recruitment and Selection Costs ................................................................................................................42 Training and development Costs.................................................................................................................42 Talent Pool...................................................................................................................................................42 Low productivity ..........................................................................................................................................43 Employee Frustration ..................................................................................................................................43 New Hiring Costs .........................................................................................................................................43 Low employee morale .................................................................................................................................43 Competitive Edge ........................................................................................................................................43 RECOMMENDATIONS ......................................................................................................................................44 Recruitment.................................................................................................................................................44 Realistic Job previews..................................................................................................................................44 Induction/Initial Training:............................................................................................................................45 9

Employee Friendly Culture ..........................................................................................................................45 Competitive Compensation.........................................................................................................................45 Performance Management .........................................................................................................................46 Reward and Recognition .............................................................................................................................46 Assess needs of Workforce .........................................................................................................................47 ACTION PLAN FOR REDUCING EMPLOYEE ATTRITION ....................................................................................48 CONCLUSION ...................................................................................................................................................49 REFERENCES ....................................................................................................................................................50

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HISTORY OF SONERI BANK LIMITED

Directors from international financial institution to open the market and involve the private sector in the economy of the country got the leading investors from private sector and one of them was the Rupali Group. This group belongs to Feerasta Family. This group started its business before 1971 partition of East Pakistan and come to West Pakistan after 1971. SONERI BANK LTD was incorporated on 28thSeptember 1991, the first branch in Lahore was opened in 16thApril 1992 and second branch in Karachi came into business on 9 th May 1992. The head office is in Lahore and the central office is in Karachi. The authorized and subscription capital is Rs.300 million Out of which Rs.150 was million was distributed by Feerasta Family and Rs.150 million worth share was offer to general public. There was over subscription of 28 times more than the number of shares offer for subscription and the over subscription NRPs was 3 times more. The bank currently operates 170 branches, spread all over Pakistan including the Northern Areas of the country. The banks expansion policy is based on the principle of maintaining a balance between the urban and rural areas. This created its own challenges and opportunities, and forced them to evolve an outward-looking strategy in terms of their market emphasis. As a result, Soneri Bank developed a geographically diversified assets base instead of a concentrated and heavy reliance on business in the major commercial centers of Karachi and Lahore, where most other banks have their operational Head Offices. Pleasant and sophisticated atmosphere has been provided in the branches which are fully air conditioned and computerized. The bank after eight months of functioning published its first Balance Sheet as on 31tDecember, 1992 responding with great satisfaction to the confidence reposed in it by its shareholders. Among the new banks, Soneri is a front runner and continuous to make rapid strides in respect of deposits. The bank is now in the process of consolidation with care and caution and steady growth on sound footings with best possible services for its customers as the guiding principles. The Rupali Group has an investment of more than Rs.10 billion in industrial sector other than SONERI BANK LTD.

History of Rupali Group:

They started their business in 1948. There basic business is Polyester Fiber the one of the largest facilities in Pakistan. Their policy is To grow on strength of quality and reliability. In 1956,
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the group started a business and launched their product with the name of Consul Stock. In 1969; they formed Wooden Spool Manufacturing Co Ltd. Collaboration with Japanese company in 1971, the group shifted to West Pakistan and established Rupali Nylon Pvt Ltd and was the sole agent of Toray of Japan in Pakistan. In 1980, the local production polyester Filament Yarn started with the name of Rupali Polyester Ltd. In 1968, another project of Textorium Ltd was started which deal in texturized element

BANK INTRODUCTION
Soneri bank Limited is engaged in banking service, and operate more than 170 branches including Islamic Banking Branches in Pakistan. The bank operates in four segment corporate finance, trading and sales, retail banking and commercial banking. Corporate finance includes syndicated financing and services provided in connection with mergers and acquisitions, underwriting, privatization, securitizations, debt,equity, syndicatio n, Initial public offers (IPO) and secondary private placement.Trading and sale segment includes fi xed income, equity, foreign exchange,commodities, credit, funding, own position securities, broke rage debt and prime brokerage. Retail banking segment includes retail lending and deposit, banki ngservices, private lending and deposit, trust and estates investment advice andmerchant/ commercial/ corporate cards. Commercial banking includes project finance, real estate, export finance, trade finance, factoring and leasing. The essence of the banks business philosophy is to cater to the banking requirements of small &medium sized entrepreneurs, providing them qualitative & competitive services with emphasis on encouraging exports. Nearly forty percent of our credit portfolio is related to export financing and credit decisions are taken within 48 hours.

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VISION STATEMENT
To provide quality services to its customers through adoption of best practices andfull

exploitation of I.T advancement, culminating at a leading position amongst its peer banks

Stronger banking relationships, increasing customer confidence.

MISSION STATEMENT
To develop Soneri Bank Limited into an aggressive and dynamic financial institution having the

capabilities to provide personalized service to the customers with cutting edge technology and a wide range of products, and during the process to ensure maximum return on assets with ultimate goal of serving the economy and society.

We have more time for you

Credit rating:
The Pakistan Credit Rating Agency Limited (PARCA) has maintained bank s long-term and shortterm entity ratings at AA- and A1+ respectively and A+ for the Term Finance Certificates. These ratings denote a very strong capacity for the timely payment of financial commitments. The Soneri Bank Limited long term rating increased to AA- and A1+ in the short term. These ratings have been assigned by PACRA, Pakistans Leading rating agency. These rating denote better risk absorption capacity stemming from enhanced equity as well as wellmaintained credit portfolio.

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VALUES
We cannot successfully achieve our goals even if we have all the resources andinstruments at our disposal unless we change our values and attitudes. The value s which each staff member should inculcate and practice are: Excellence Quest for the highest level of performance through continuous improvement of our skills and business practices Team Spirit Working together in a spirit of creativity and mutual respect to achieve common objectives Diversity in leadership creating innovative leadership teams who succeed through diversity of thought and reflect the diversity of our people. Integrity Observing the highest standards of ethics, honesty and accountability at all times Professionalism Delivering the best quality service to our clients with utmost rigor and efficiency Transparency Acting with clarity, equity and objectivity in designing, interpreting and applying Bank policies and procedures

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SHARE HOLDER INFORMATION

ASSOCIATED COMPANIES

Rupali Polyester Limited Rupafil Limited Spintex Limited Rupali Nylon (Pvt.) Limited

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PATTERN OF SHARE HOLDING

Description
Directors, CEO and their spouse and minor children Associated Companies, undertaking & related parties Trustees Alauddin Feerasta Trust Trustees Feerasta Senior Trust Trustees Alu Trust Executives 290,991 0.0233 NIT and ICP 161,196,787 17.8529 Banks, DFI & NBFI 22,253,163 2.4646 Insurance 13,633,405 1.5099 Companies Madarabas & 24,701,015 2.7357 Mutual Funds Joint Stock 5,617,027 0.6221 Companies Foreign Companies 40,541,354 4.4900 General Public 111,805,503 12.3827 (Local) General Public 15,990,639 1.7710 (Foreign) Others 190,436 0.0211 Total 902,918,495 100.00 Refer our Annual Accounts as of December 31, 2011

Shareholding Percentage
12,027,971 1.3321

199,678,993 196,684,455 98,387,756

22.1148 21.7832 10.8966

Pattern of Share Holding

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PRODUCTS & SERVICES OFFERED

The following are the services and products offer by the bank to facilitate customer in providing them their savings in order to make future investment and growth for the organization.

SPECIAL NOTICE DEPOSITS

Period Minimum investment of Rs. 10,000/- Profit payment on maturity as well as rollover of profit 7 days 30 days 6.00% p.a 8.00% p.a Rate of Return

PLS SONERI BANK LIMITED SAVINGS ACCOUNTS

DESCRIPTION Minimum balance of Rs. 5,000/- must be maintain per month on daily basis other wise Incidental Charge of Rs. 50/- will be deducted. Profit payment is on half yearly basis. Balance Upto Rs. 100,000 Balance Over Rs. 100,000 but upto Rs.1.0 Million Balance Over Rs. 1.0 Million but upto Rs. 10.0 Million Balance Over Rs. 10.0 Million 5.00 %. 8.00 %. 10.00 %. 12.00 %. Rate of Return p.a

PLS TERM DEPOSITS

DESCRIPTION Minimum investment of Rs. 10,000 Profit payment according to term, Profit rollover facility available. Term 1 month Term 3 month Term 6 month Term 1 year
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Rate of Return p.a

8.00 %. 9.00 %. 10.00 %. 11.00 %.

Term 2 years Term 3 years

12.50 %. 13.00 %.

CERTIFICATES OF DEPOSITS
DESCRIPTION Pre mature encashment will be made on the return of PLS Term Deposit. Minimum period after which encashment will be made is 90 days Soneri Bank Limited Savings Certificates (3 Years Term - New Scheme) Profit Payment on Half Yearly basis, minimum deposit start from Rs. 10,000/Golden Deposit Certificates (5 Years Term) Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (New Scheme ef 1.1.2009)1 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (New Scheme ef 1.1.2009)2 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (New Scheme ef 1.1.2009)3 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (3 Years Term - Old Scheme) 1 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (3 Years Term - Old Scheme) 2 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/Diamond Deposit Certificates (3 Years Term - Old Scheme) 3 Year Profit Payment on monthly basis, minimum deposit start from Rs. 10,000/18

%age

11.50%

10.25%

12.00%

13.00%

14.00%

11.50%

12.00%

13.00%

Soneri Bank Limited Premium Deposit (12 Months Period) NEW Profit Payment on maturity, minimum deposit start from Rs. 10,000/-

15.00%

NOTE ANNUALISED RATES OF EXPECTED PROFIT FOR DIFFERENT TYPES OF PLS DEPOSITS

CURRENT ACCOUNTS
Term Current Deposit Account Free Statement of Account Every Six Month Minimum balance requirement Rs.10,000/FREE ATM Card, Online Banking, T-Banking etc Basic Banking Account Free Statement of Account Every Six Month No Minimum, 4 Cheques Issuance any additional will be charge FREE ATM Card, Online Banking, T-Banking etc Rate of Return p.a NIL

NIL

ISLAMIC BANKING PRODUCT

DESCRIPTION Soneri Bank Limited Jari Account (Islamic Banking Product) Free Statement of Account Every Six Month No minimum or maximum limit FREE ATM Card, Online Banking, T-Banking etc Soneri Bank Limited Bachat Account Free Statement of Account Every Six Month Initial starting investment of Rs. 100, Profit payment on quarterly basis.fFREE ATM Card, Online Banking, TBanking etc Soneri Bank Limited Munafa Account Free Statement of Account Every Six Month No minimum or maximum limit FREE ATM Card, Online Banking, T-Banking etc Soneri Bank Limited Meaadi Account Minimum deposit of Rs.10,000/- for period 1, 2,3,4,5
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Profit p.a

NIL

Profit calculated on monthly average

Profit calculated on daily product Profit payment at the quarterly after

years and quarterly and halfyearly. Fund utilize on the basis and in accordance with the Shariah Principle

deduction of exp and management fee

E BANKING & CARDS

DESCRIPTION Simple ATM Card Free for the first time, Issuance Charges Rs. 200 + Ex. Duty Rs. 15 charges on 1Link ATMs and Rs. 5 on Balance Inquiry on M Net, POS Transaction allowed, Rs. 25,000/- daily limit for withdrawing cash and 250,000 on Fund transfer facility Visa Classic Card Free for the first time, Issuance Charges Rs. 200, 3% on purchase on POS terminal, Can be used outside the country (conversion rate applied), 2 Year Expiry from the date of Issue, Daily limit for withdrawing cash is Rs. 35,000/- and for Fund transfer Rs. 250,000/ Visa Gold Card Minimum Balance requirement for issuance of card is Rs. 50,000/- for the last six month, Rs. 500, 3% on purchase on POS terminal, Can be used outside the country (conversion rate applied), 2 Year Expiry from the date of Issue, Daily limit for withdrawing cash is Rs. 50,000/- and for Fund transfer Rs. 250,000/. Running Finance Facility available (condition applied). Easy to use every where Online Banking Free for all the customer, no charges applied. Simple Balance Inquiry, Fund Transfer Fund transfer within the same bank is Free upto 250,000/- . 1Link member banks the charge per transaction is Rs. 50/Utility Bills Payment Utility bills can be paid through bank ATM Machine, KESC, SSGC, PTCL, Warid etc Telephone Banking 24 Hour Telephone Banking Service available for national and international customer
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Charges

NIL

150 p a

500 p.a

NIL

Cheque Free Banking Now customer can withdraw money from their account without having cheque. All they need to do is to give there atm card to the online banking teller at bank can cash upto 300,000
NOTE WITHDRAWL ABOVE RS 25,000/- PER DAY WILL LEVY WITHHOLDING TAX.

CONSUMER FINANCING
DESCRIPTION Soneri Bank Limited Car Finance For Cars upto 1800 CC Rs. 1.0 M For Cars exceeding 1800 CC Rs. 2.0 M Down Payment On finance of upto Rs. 1.0 M : Minimum 15% of Car Price.On finance exceeding Rs. 1.0 M but not more than Rs. 2.0 M : Minimum 20% of Car Price. Payment Period Payment period upto 5years Processing Fee Rs. 2000/- per application up front (Refundable) Prepayment Penalty 2% on outstanding principal Soneri Bank Limited Ghar Finance Financing Amount: Purchase / Construction of residential property up to Rs. 5,000,000/Extension / Renovation on own property up to Rs. 2,000,000/Fee and Legal Charges Processing fee Rs. 2,500/- or 0.50% of the finance amount which ever higher Soneri Bank Limited Personal Finance Eligibilty Salaried persons in permanent employment with legal entities approved by the Bank who meet our other conditions to qualify for the finance. Maximum Amount of Finance Rs. 500,000/- or Five times of applicants one month gross salary
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Markup Rate

17%

Floating markup rate @4.5% prevailing SBP discount rate @ 16.5%

19.00% p.a

A Complete Banking Experience

Soneri Bank prides itself on serving the needs of every type of banking customer, all under one roof. This is the essence of our business philosophy. All branches are capable of providing a complete solution, depending on the customer's needs and profile. From an array of savings and investment options to insurance to loan facilities and trade finance options, they have products to cater to individuals, SMEs and corporate banking customers. From technology to innovation to a commitment to excellence, Soneri Bank believes in offering the best to its customers, no matter who they are.

Deposit Products:
Deposits are at the core of Soneri bank product offerings. For customers with varying financial needs, Soneri Bank offers a variety of Savings and Deposit products with which we have access to a variety of flexible accounts and special benefits. Deposits product portfolio includes accounts like Son en Savings, which is a daily product account offering a tiered profit structure which gives attractive returns as the account balance grows. Fixed deposit accounts give added flexibility to invest money at varying tenors and choose from a range of proftt payment frequencies at attractive rates, which provide a hedge against rising inflation. Soneri lkhtiar Current Account offers amazing convenience and multiple free benefits to business customers, to make their business grow and thrive. Then there are the basic transactional and savings accounts, which are aimed at the small savers or customers who require transactional convenience.

Trade Finance
Trade Finance is one of main strengths; dedicated staff and presence in key market areas makes Soneri banks trade offering one of the best in the market. Their ability to provide tailor-made solutions through an expanding sutte of product options additionally provides them with the edge that is needed to be fast and effective in serving customers. Through a large number of

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correspondent banks, Soneri Bank stretches worldwide to provide our customers with ease and convenience no matter where they are.

Corporate Banking:
With a host of innovative products, Soneri bank find out how to get the best out of business' corporate finance needs with their dedicated staff. Their large exposures coupled with a dedicated Structured Finance Unit, and an innovative team of professionals who have extensive experience in Corporate & Investment Banking, give them the right platform to succeed in today's competitive and demanding environment.

Islamic Banking:
Modem Islamic banking has spread over the last four decades and the industry now has systemic importance in the global financial order. Soneri Bank have a strong commitment to provide Shariah-based banking in the country. TheirIslamic Banking products mainly include Murabaha, Musharaka, Salam and ljara financing facilities, whereas on the liability side the Bank offers a variety of options from Current Accounts, Savings Accounts and Term Deposits, all strictly based on Shariah principles.

SME Finance:
Entrepreneurs can be individuals, proprietors or partners and Soneri's SME product profile caters to all of them equally. Small and Medium Enterprise (SME) solutions are cost effective, innovative and tailor-made to provide financing on flexible terms.

Consumer Finance:
For the Bank's account holders who require a car loan or a personal loan, Soneri Bank offers the perfect solution at affordable prices with quick processing time. This is offered to individuals only.

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Agricultural Financing:
Soneri Bank offers the farming community of Pakistan a host of competitive agricultural financing facilities perfecdy suited to their particular requirements. Through multiple branches, they ensure availability of adequate and timely banking credit right at their doorstep for both production and development purposes. Agriculture Finance Officers, deployed in key agricultural areas, ensure better coverage and personalized service.

Bancassurance:
Bancassurance continues to be a growing financial services segment. Soneri's Bancassurance services cater to all members of society. Families can save for their children's higher education through Roshan Aghaz. People young and old can plan for financial support at the time of their retirement through Roshan Takmeel. Soneri Saver provides an avenue of saving that is ideal for couples, with the benefits of life insurance covering the life of two individuals to provide financial support in case of any unforeseeable event. And for entrepreneurs in today's uncertain business climate, Karobar Muhafiz gives businesses some much needed added security against financial emergencies.

Online Banking:
With a fast growing network of 214 branches country-wide, Soneri Bank also offers fast, reliable and secure service to all customers. Customers can make hassle-free cash payments and deposits into accounts maintained at any of our Soneri Bank branches.

Corporate Governance:
There has been a conscious, concerted effort to make the decision making process at the Soneri Bank more structured, inclusive and result oriented while the board of directors which is assisted by various sub committees performs the policy formulation& oversight function.

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BOARD OF DIRECTORS S. No.

01. 02. 03. 04. 05. 06. 07.

Name of the Director

Mr. Alauddin Feerasta Mr. Mohammad Aftab Manzoor Mr. Nooruddin Feerasta Mr. Inam Elahi Mr. Muhmmad Rashid Zahir Mr. S. Ali Zafar Mr. Manzoor Ahmed

Designation
Chairman President & CEO Director Director Director Director Director (NIT Nominee)

08.

Mr. Shahid Anwar

Director (NIT Nominee)

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ORGANISATIONAL STRUCTURE

TOP LEVEL MANAGEMENT

MR ALAUDDIN FERMR. ALAUDDIN FEERASTA

MR. AFTAB MANZOOR CEO AND PRESIDENT

MR. NOORUDDIN FEERASTA DIRECTOR

MR. IMAM ELAHI DIRECTOR

MR. S. ALI ZAFAR DIRECTOR

MR. ABDUL HAYEE DIRECTOR

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MIDDLE & LOWER MANAGEMENT

DIRECTORS AUDITORS SEVP SECRETARY EVP

VP
GRADE I GRADE 3

AVP
GRADE 2

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STRUCTURE OF SONERI BANK HR DEPARTMENT

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THE HUMAN RESOURCE DEPARTMENT AT SONERI BANK

The human resource department is very important department of the bank. The function of the human resource department of the bank is to coordinate the activities of the employees. This department handles all the activities related with the employees of the bank. The most important job is to analyze the work and make planning for the people who are working on the organization The othe important responsibilities of the department is as under Analyze work and planning for people.

Recruitment Staffing Work place training Performance management Managing careers Pay& incentive system Employee benefit plans Employee assistant program

HUMAN RESOURCE MANAGEMENT AT SONERI BANK

The HR Department formulates all the policies directly or indirectly related with the employees of the bank, therefore we can say that human resource department of the bank comprises of highly professional people who are very equipped with skills and knowledge required to perform their job in the HR department of the Bank. The transfer and posting of staff is another important job to perform by HR department Top management views the HRM as an important tool to enhance competitiveness.
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HRM MISSION STATEMENT

The mission of SONERI BANK s HRM is to guide, facilitate and coordinate Organization wide effort to provide innovative, cost effective human resources programs to recruit develop and retain a highly qualified diverse workforce, reward employees throughout the organization. For that purpose, SONERI BANK s HR department is providing equal opportunities and training at all level.

Human Resource Planning Process (HRPP)

For any organization, regardless of its size, capabilities and finance, the most important resource and highly valuable asset is Human Resource or the people of that organization. Value of managing this asset has been recognized by almost all bigger organizations and the result is the establishment of a department; know as Human Resource (HR) Department. Still this area needs to be explored further and much work is to be done and so, Human Resource Management is in its infancy stage.

The drive behind the establishment of HR department in any organization is to make the best use of the talent and skills of the employees and ultimately to gain a competitive advantage over the competitors. In order to achieve this objective, the HR department defines its strategy or the plan of action. Randall Schuler defines HR strategy 1 as:

HR strategies are essentially plans and programs to address and solve fundamental strategic issues related to Human Resource Management This plan of action should be according to the abilities of the organization, characteristics of the organization, organizational strategy and the environment as well as what is happening outside the organization, i.e. external environment which takes into account the competitors of the organization in the market. If the action plan of HR does not fit the aforementioned factors
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then the organization will fail to gain a competitive advantage as a misfit between them will result in inadequate performance of the employees and ultimately of the organization. SONERI BANK has the following these steps for Human Resource Planning; Determined the organization mission Scan the organizational environment Set strategic goals Formulate a strategic plan.

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Study for problem analysis

Purpose of the study

The main objective is to study the reasons for employee turnover or causes for manpower leaving the organization and the level of satisfaction of employees regarding the various aspects like pay, training given by the organization, performance appraisal which effects the job they do. Analysis of employee mobility is a vital part of the management process. Human resource managers make decisions that affect the relationships between employees and employers like how many employees to hire, at who to train in which skills and how to handle dissatisfied employees. The obtaining and recording of costs, number of people leaving, types of employees who are terminating, why they are separating from the company, are all indicative factors to management of its quality of operation. Without this analysis, management is overlooking one of the most important factors of production with which it must cope.

METHODOLOGY
Scope of study The study covers the various practices of human resources like training salary scheme, leave scheme of the organization as well as the communication skills and interpersonal skills of the employees. The study is confined to one organization that is Soneri Bank Ltd. Research design: An attempt was made to study the impact of employee turnover and also to assess the levels of satisfaction of employees with respect to employee mobility structure prevailing in the organization.

DATA COLLECTION METHODS:

Primary source: Primary data source for the study is the questionnaire. The questionnaire consists of a few closed-ended questions and a few open-ended questions. Questionnaires were handed to the
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samplers and collected within a week. Secondary source: Data regarding the company profile is drawn from secondary sources like brochures, company websites, annual reports, opinion of employee constitute. Research instruments used: Data was collected from employees of different departments using questionnaire attached in Annexure. The questionnaire consists of a few closed-ended questions and a few open-ended questions. The rating for closed-ended questions was on a five-point scale. The scale ranges from Strongly agree, Agree, cant say, Disagree, Strongly disagree. Respondents were requested to select the most appropriate answer, which suited him/her the best. Simple tools like averages, percentages and graphs were computed for the overall sample on various dimensions SAMPLING: The questionnaires were handed to the sales managers and relationship officers in the organization. The sample size is 30. Questionnaires were handed to the samplers and collected within a week. The study was undertaken in Soneri bank ltd for 30 days. Data analysis method: The results collected from the various sources were then scrutinized and expressed in the form of graphs to be amenable for further analysis. All the conclusions were drawn based on a detailed analysis of the collected data.

RESULTS Study Findings As per responses given by employees, following findings are observed through analysis:
1.The relation between the management and the employees is good. 2. The staff agreed to the statement my colleagues are cooperative and helpful. 3. The majority of the staff agreed that their superior is approachable and understanding. 4. The staff reported that their job provides personal satisfaction and sense of accomplishment. 5. The organization does not offer job security.
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8. Training programmes are conducted for the employees 9. Training programmes meet the personal needs of employees and objectives of the organization. 10. Efficiency and hard work are suitably rewarded 11. Recreational facilities are provided to the employees. 12. Management adopts a good leave policy 13. The employees are involved in decision making process 14. There is no scope for advancement in the job 15. The organization needs to adopt welfare measures such as medical and transport facilities to the employees and also monetary benefits to the employees. 17. There is congenial working atmosphere in the organization. 18. The monetary incentives are not satisfactory. 19. Positive stress (writing bonds) is required for effective utilization of manpower. 20. The majority of employees strongly agreed that implementation of suggestions given by the employers is a motivator towards better work. 21. The following are the reasons for the employees leaving the organization. I. II. III. Lack of basic facilities in the organization. Search of better job and better pay. Dissatisfaction with the job.

22. The following are the five features in an organization where one would love to work. I. II. III. IV. V. Good working conditions and good pay Cooperation and coordination from co-employers. Job security 4. Involving employees in the decision making process. 5. Challenge and competition in the work

23. The following are the measures to avoid the problem of man power leaving the organization. I. II. III. Providing basic facilities to the employees Up-gradation of policies and positive motivation. Regular training programmes and tours outside the working place.
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High Turnover Rate: Soneri banks Major HR issue

Employees are the most valuable asset to any organization. When an employee leaves an organization, the organization loses precious skills, techniques and knowledge that are otherwise employed while the employee is working for the company. Besides, retention of employees is highly critical for a company because company spends lot of cost on training employees and develops their competencies to help them deliver their best inputs at work. But if there are so many things that the company offers to the employee, then what makes the employee leave the organization? The answer lies in research studies conducted on employees of different organization which revealed that high turnover rate is directly proportional to job dissatisfaction, job stress and imbalance between work and life. SBL is operating in a highly competitive environment. The competitors eyes are on SBL human resource and employees turnover rate increases when the competitors offer competitive jobs with market-competitive packages. Each employee wishes to be paid a handsome salary as much high as possible and it is human nature that he/she will choose job which has better package to offer. Additionally, lack of care for employees on part of employer is another major reason why employees quit working in any organization. Problems faced by employees which are reported too, when are not addressed and resolved, then employees feel that they are not valuable. This perception towards their organization becomes a push factor to leave company. Employees tend to leave a company because of unsatisfactory performance appraisals. Low pay is good reason as to why an employee may be lacking in performance. Unequal or substandard wage structures fall under this category as well. "When two or more employees perform similar work and have similar responsibilities, differences in pay rate can drive lower paid employees to quit. In a like vein, if you pay less than other employers for similar work, employees are likely to jump ship for higher pay, if other factors are relatively equal." Hiring the right people from the start is the single best way to reduce employee turnover. Interview and vet candidates carefully, not just to ensure they have the right skills but also that they fit well with the company culture, managers and co-workers. Employees usually prefer an environment where they feel that equity is maintained in their
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work. They will be more satisfied in an organization where their work is appreciated and they get paid equally on the basis of their workload. In comparison to reward/ facilities, employees at HSBC, Askari and HBL feel their workload is equal whereas workload is more at Standard Chartered, NIB, and SBL. The Banking hours are 9.00 to 5.30 which can even exceed if work is not finished and thus lead to late sittings. This may result in employee turnover and job dissatisfaction. When employee start to have this feeling that his workload is more as compared to other employee working with him and also he is not getting paid accordingly, then he will be looking for better job opportunity. At SBL, there is lack of proper retention strategy. No doubt, every employee regardless of the company in which he/she is working will be offered a handsome package by a competing firm to leave the current organization and join them. But in order to curtail this external effect, the management of the organization should exercise retention strategy. The employee usually leaves the company for better package, better growth opportunities and career development. But at SBL, employees are offered packages according to classification levels (CL) and employees may not be satisfied with what they are getting. Lack of team work also causes employee turnover. Cross-training is important for many different reasons, but it is also a good way to encourage cooperation and the sharing of information. In addition, cross-training helps companies cope with the unexpected absence of a key employee -- if others are trained to perform the same functions, the impact of that worker's absence is lessened. Learning new things and picking up new skills can also improve employee morale -- high performers do better when they are constantly challenged and motivated. As for training and development, at SBL, training sessions though are arranged for employees but still there is a dearth of proper Training plans. Late promotion is another reason which hampers career development of employees pushing them to leave the company. According to a research study conducted by Abbasi and Hollman 4, when an organization loses a critical employee, there is negative impact on innovation, consistency in providing service to guests may be jeopardized, and major delays in the delivery of services to customers may occur A fishbone diagram of High Turnover rate follows this discussion. Following costs are incurred
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by the company when an employee leaves the organization according to Hinkin and Tracey 2.

Turnover Cost Categories

Separation costs
Exit interviewer Employee exit interview Paperwork processing Severance pay

Recruiting and attracting costs

Advertising Search and agency fees Internal referral fees Managerial pre-employment administrative functions Applicant travel and Recruiter travel Miscellaneous (correspondence, telephone, couriers) HR pre-employment administrative functions Recruiter time

Selection costs
HR interview And Managerial interview Applicant travel Background and reference checks Medical exam HR and Managerial administrative functions

Hiring costs
HR and Managerial administrative functions Relocation costs Signing bonus Orientation and Formal training On-the-job training Uniforms Security Informational literature

Lost-productivity costs
Vacancy cost Pre-departure productivity loss Learning curve (cost incurred and lost revenue) Errors and waste Supervisory disruption Peer disruption

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Root- Cause Analysis Of major HR Problem

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ROOT CAUSE ANALYSIS OF THE ISSUE OF TURN OVER AT SONERI BANK (Ishikawa diagram)

Management
No Appreciation Employee counseling Lack of Teamwork Lack of cooperation Grievance handling

Compensation
Low salary Low incentive Lack of growth opportunities Low benefits

Desire for better career

ineffective recruitment tools Unrealistic job preview

High Turn Over

Desire for better package Unmet needs of employees Poor talent management Excessive workload

Lack of employee development plan

Individual issues

Recruitment

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IMPACT OF HIGH EMPLOYEE TURNOVER RATE ON COMPANY

Recruitment and Selection Costs
Bill Bliss, President of Bliss & Associates Inc., a South Carolina consulting firm providing advisory services to entrepreneurial companies is also an article writer. He comments in his article Cost of Employee Turnover saying that the cost of employee turnover is near about 150% of the employee annual compensation figure and this cost is higher for managerial and sales position. Applying this in Pakistan including SBL, suppose if an employees salary is 500,000/- per annum, then the employee turnover rate as per 150% concept will be 750,000/-. As a result of the employee turnover, SBL may have to bear the recruitment and selection costs which include, advertisement, the cost of the internal recruiter's time to understand the position requirements develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments conduct reference checks, make the employment offer and notify unsuccessful candidates.

Training and development Costs

Labor turnover in the banking industry though has not been stable; it has a lot of cost implications to the industry. If Banks are to remain competitive, they should know that such costs although cannot be avoided as labor turnover is not avoidable as far as death is concern; efforts should be made to mitigate these costs by retaining employees in the organization. SBL train new employees and send to other countries for specific courses. When these employees leave the organization after getting training, SBL has to bear the heavy costs of training.

Talent Pool
It can sometimes take months, or even years, to find qualified employees to fill the positions in our company. If we are experiencing high levels of turnover, then we are losing talent that took us so long to acquire. Losing top level talent from within our company lowers the quality of work our company can do, affects customer service by removing employees that customers trusted and negatively affects our ability to be competitive in the marketplace.

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Low productivity
As a result of the turnover, productivity becomes low and management has to devote time to seek for new candidates. This disrupts the smooth functioning of the organization and creates an emergency situation if back ups are missing.

Employee Frustration
Turnover burdens other employees as they must pick up the additional shifts, specifically clerical staff, this in turn frustrates the employees for having to work more than their usual working hours. This also misbalances employee work-life relationship and causes lowering the morale.

New Hiring Costs

As a result of the turnover, organization has to recruit new candidates for the vacant posts. The cost of bringing the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles. It also includes the cost of a manager's time spent developing trust and building confidence in the new employee's work.

Low employee morale

Employee turnover is the main cause of low morale in the remaining employees. They feel insecure and concentration on the job decreases.

Competitive Edge
Just like in all other companies, high employee turnover rate at SBL also results in loss of skills and knowledge that the leaving employee has. The company loses a competitive advantage when the employee quits. Training your employees to stay current on industry changes and new technology in the marketplace is important in trying to establish a competitive edge. The more our employees know about the trends within industry, the better-equipped our company is to use those changes to our advantage. With high turnover comes the need to continually train new employees on how to maintain our competitive edge. Our competitive edge is lost when you are not able to retain the employees that you need to exploit that edge.

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RECOMMENDATIONS
In order to decrease the turnover rate, the company should implement retention strategy. Such strategy calls for designing exit interview and employee surveys to ascertain the reasons for leaving the organization and then that problem should be directly targeted

Recruitment
Poor hiring practices significantly contribute to employee turnover.SBL should reassess its recruitment process and try to introduce more productive and successful employment process. Take the time to ensure that your hiring process is systematic, objective and based on established selection criteria. Hiring employees with the right "fit" ensures compatibility which is critical to retention. Behavioral based interviewing and competency screening goes a long way in determining personality, work style and potential match and success within your company. Consider hiring older candidates who are seeking stability. Older applicants may not be looking for the development opportunities that their younger counterparts may be in need of.

Realistic Job previews

A realistic presentation of relevant aspects of jobs will help attract promising applicants who are more likely to stay with the organization. Turnover rate increases when the employees job expectations dont match with work experiences. Honesty is the best policy for minimizing problems with employees later on. Therefore, while interviewing the candidates, the employee should be informed about both the positive and negative aspects of the job. Negative aspects of the job might include information about relocation, time and performance level required for promotion incase if it will take high performance and long time to the next level on hierarchy, work hours, outdoor activities, etc. should be communicated clearly well before any final decision by the

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candidate is taken because such information may influence the decision of candidate of job offer acceptance or rejection.

Induction/Initial Training:
It is critical that a new employees introduction to an organization is a positive experience that reinforces their decision to accept the employment offer. How a new employee is inducted has a major influence on the perception that employee has of the organization, its people and its level of professionalism. It is not uncommon for a new employee to leave within days and weeks of starting. SBL HR should make sure that it gives new employees helpful tips for dealing with job realities. This can be accomplished effectively in an employee orientation program. Its also a good idea to place new employees in work groups with positive attitudes. And make sure that new employees receive the support they need from their supervisor, especially during the first three months on the job.

Employee Friendly Culture

Employees stay with the organization only when they feel that they are taken care of by their organization. Employees should be provided recreational opportunities like participation in sports including, cricket, football and tennis matches, picnics, annual dinner, Eid Milan, concerts and dinner passes, etc. to make employees feel that they are a part of the family.

Competitive Compensation
SBL would be able to retain and attract well-qualified and talented personnel if it would make it a point to offer salaries that would be competitive. This would possibly resolve the problem of employees leaving based on low salaries. SBL should also offer attractive benefit packages. Develop competitive compensation and benefit packages. Understand and research market pay ranges in your area and consider the value of benefits and employee perks; offering such extras to your workforce may be the key to your retention efforts. Employers, who offer competitive salaries along with good benefits, will most likely retain their employees. Employee payroll is not a long-term place to save money in business. Give the best
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employees golden handcuffs by paying above market rates and provide incentives to be the highest paid employee in their field.

Performance Management
Employees who feel mistreated by management are more likely to pack their bags. The HR department should periodically conduct Performance Management to review the progress of performance of employees. This will help the department identify the potential candidates who have the ability to learn and lead in the future and take the company in new direction of market leadership. Such employees should be given training and a proper development plan should be prepared, highlighting their career path and according to the future positions that they will be holding, they should be given training in those areas in particular.

Reward and Recognition

Employees are more willing to stay with a company if they feel a sense of pride and success in their work. When employees meet or succeed employers expectations, show appreciation for a job well done .Provide an employee-friendly work environment. Provide career advancement opportunities. Whenever possible, provide opportunities within the company for cross-training and career progression. Employees are seeking to develop themselves, and offering that opportunity to them may provide the satisfaction and stability they are seeking. Provide efficient career planning and development programs. Employers who offer awards and incentives for a job well done are also more likely to retain their employees. These appreciation awards can range anywhere from a gift card to actual monetary bonuses. Simple emails of praise at the completion of a project, monthly memos outlining achievements of your team to the wider division, and peer-recognition programs are all ways to inject some positive feedback into a workforce. Also, consider reporting accomplishments up the chain. A thank you note to the employee is good. Copying higher-ups makes that note even more effective. The bottom line is that SBL need to try a little harder at pleasing their employees.

Give an opportunity to build a career

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Another way to drive up employee engagement and retention is to support employee development and career progression. Employees need to feel as though they have a future with an organization, and a career path that helps them further develop their knowledge skills and abilities. Career development can take many forms, from formal courses, to challenging work assignments, to mentoring programs. Show every employee where they can go from here. Career development is an effective way to keep employees engaged and productive.

Assess needs of Workforce

Frequent employee surveys should be carried out to find out how employees feel about their organizations. Employees may be unhappy because their needs are not met and they are not able to maintain work/life balance. Employees needs can be both personal need (compensation and reward) and professional need (career growth and advancement). Both types of needs should be addressed. Satisfying both types of needs will help SBL develop successors for future

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ACTION PLAN FOR REDUCING EMPLOYEE ATTRITION

ID

Action Plan for Reducing Employee Attrition

Promoting the sense of Perceived Organizational Support

Responsibility

Start

Finish
Jan

Q1 12 Feb

Mar

Apr

Q2 12 May

Outcome
Jun

HE Head

1/2/2013

2/29/2013

Employees will be loyal to the company when they themselves will be motivated Employees will retain when they will get competitive packages in the same organization where they have been working for the last few years.

Align SBLs salary structure with the market survey

GM-HR

1/2/2013

3/30/2013

Develop and implement retention strategy

GM-HR

3/1/2013

4/30/2013

Attrition rate will reduce

Redesign job interviews and including a realistic job preview in them

GM-HR

4/2/2013

4/30/2013

Candidates expectations of job and work experiences will match and hence there will be infrequent thoughts of quitting This will help in assuring time-totime skill building in employees and will motivate employees

Develop a training calendar for potential employees

Training and Development Manager

4/2/2013

5/30/2013

Develop career path for employees who can replace the quits and retired employees (succession Planning)

GM-HR

5/1/2013

7/30/2013

Enhance motivation level because this will grow employee professionally

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CONCLUSION
To conclude, Soneri bank Limited is a growing entity with its operations expanding throughout Pakistan. Though the bank has shown tremendous and remarkable performance in the last few years but there are issues associated with the employees of the organization and therefore, Human Resource Management is a critical area to work upon as all excellence that the company can show depends mostly on what employees will do for SBL. A chain of problems exists in HR at SBL which is affecting the daily operations of the company. All the problems are interconnected and one is paving the way for another and hence, thorough analysis of each problem can help to initiate resolving these and action plan executed for one will solve another as well, provided top management support is available. Not only HR Department, but each and every employee of the company needs to take part in this exercise of implementing problem-solving techniques to achieve holistic results and along with this, technical assistance from outside Consultants will be an added advantage for the company. Concurrent and Feedback control need to be implemented necessarily so as to closely monitor the progress towards the goals to resolve HR problems and prevent any deviations.

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REFERENCES
www.soneribank.com Employee Handbook Soneri Bank Ltd. Mr. Anwer Ali, Executive Incharge, HR Division Soneri Bank Limited COK, Al-Rahim Towers Tel: 111-567-890 ext 2403 Mobile: 0321-2212096

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ANNEXURE

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