Features Of Classical Theory Commerce Essay Example

general interest of the organization, without any discrepancy.

to meet expected standards, it can negatively affect the organization's reputation and the perception of their products or brand name. This compromises quality and may have adverse consequences.

Behavioral Management Theory

The focus of the Behavioral Management Theory is on how directors can motivate and encourage employees to improve productivity and achieve organizational goals. Directors have a crucial role in personally engaging employees, making them feel valued as part of the business, and motivating them to work hard. The success of this approach largely depends on the actions and interactions of directors, especially if they adopt a democratic leadership style that involves giving decision-making authority to employees, leading to increased motivation.

Human Relations Management Theory

The Human Relations Management Theory highlights the significance of individual values, relationships, and attitudes in enhancing performance within an organization.

Elton Mayo emphasized the importance of preparation for individuals to adapt to the modern mechanical age. The human relation approach highlighted the impact of employees on organizations and stressed the need for managers to motivate them, resulting in increased productivity.

Task P5: A Brief History of Habib Bank Limited

Habib Bank Limited was founded in Pakistan in 1947 and is headquartered in Karachi. In 1951, it established its initial international branch in Colombo, Sri Lanka.

They had a dominant presence in the banking industry, holding a significant market share of 55% in international remittances and loans to small businesses. In addition, they maintained a market share of over 41% in the domestic market. Their operations expanded to various countries including the USA, Singapore, Oman, Belgium, Maldives, and Netherlands.

The privatization committee of Pakistan officially approved the ownership

of 51% shares in HBL by the Aga Khan Fund for Economic Development on December 29, 2003. As a result, control of the bank was transferred to Agha Khan on February 26, 2004. The Board of Directors underwent reconstitution with four representatives from the Aga Khan Fund for Economic Development including the president, CEO and three government representatives (HBL ,2012).

Structure of Habib Bank Limited

Habib Bank Limited operates throughout Pakistan with a total of 1423 branches located in 23 regions.

The bank's caput and direction commission oversee the interaction of the organization. Each Head Quarter is led by a Chief Executive who is supported by a General Manager. The Regional Head Quarter has authority over all subdivisions within a particular country. HBL has more than 65 separate offices overseas. The Head Office in Karachi oversees the bank's offices with the assistance of senior management. The bank's functional duties are divided into seven groups, which are known as:

• International Operations group
• Corporate Banking and Treasury Investment Group
• Retail Banking and Operation Group
• Finance Audit and Administration Group
• Asset Remedial Management Group
• Recognition Policy Group
• Corporate Bank, Financial Institution and Project Finance Group

In addition to overall control, the president independently manages the international operations group.

At all levels of state rankings, there are local headquarters led by Regional Chief Executives, who are supported by General Manager support services. Regional Chief Executives also control branches. To streamline

the organizational structure, the supervisory levels operating under zonal offices were closed down.

Departments of HBL

HBL has various departments that handle its general or day-to-day banking operations. These departments include:

• Deposit department
• Clearing departments
• Inland Remittance Department
• Bills Departments
• Advances Departments

< li >Cash department
< li >CD Department
< li >Foreign Exchange Department

The purpose of this department is to receive money from individuals who wish to deposit funds with the bank, similar to other banks. HBL also aims to attract as many customers as possible to deposit their money.

HBL offers various strategies and accounts to their clients, including Current Deposits which allow account holders to withdraw money at any time without earning interest. Savings Accounts pay a lower amount of interest based on the bank's policies, with Islamic banks not paying interest but allowing withdrawals as needed. Fixed Deposits offer significant interest based on the duration of the deposit.

In addition to these accounts, HBL also provides loan services with varying rates of interest. Demand Funds allow clients to borrow funds for a specific period without notice, requiring repayment and charging an interest rate. Running Finance allows borrowers to access funds against securities like bonds and portions within set limits, incurring an interest rate. The Overdraft facility is available specifically for loyal customers, enabling them to take out more money than they currently have in their account and only being charged interest on the excess amount.

HBL provides a variety of products and services such as Tele-printer Service introduced in 1952, Rupee Traveler's Checks in 1957,

Scheme for Small Factory Owners in 1959, Foreign Tele Printer Service in 1961, and Gift Cheques Schemes in 1962. Other services offered are School Banking starting from 1962 catering to student banking needs, Mobile Banking allowing account access through mobile phones, and the Credit Card Scheme enabling customers to borrow funds.Some organizations accept valid credit cards as a form of payment. Habib Bank Limited (HBL) has introduced additional services over the years, such as the Auto Cash Teller Machine in 1988 and the Gold Card System in 1991. The Auto Cash Teller Machine allows customers to withdraw money at any time, while the Gold Card System permits customers to withdraw up to 10,000 rupees at once.

In terms of decision-making structure, HBL follows a centralized approach where higher management makes all decisions that employees must follow without any other decision-making authority. Down communication occurs when top-level management conveys messages to subordinates using various means like addresses, cusps, and massages published within company publications. However, this policy of sending job instructions from top to bottom may lead to confusion among subsidiaries.

The chain of command at HBL is an unbroken line of authority that indicates reporting relationships. Each employee knows their reporting hierarchy, and the government structure varies based on task levels. Authority plays a significant role within the organization as it allows for decision-making and resource allocation towards achieving organizational goals. However, delegation is limited at HBL as managers aim to retain maximum power, potentially resulting in distortion if any authority is delegated.

To evaluate Habib Bank Limited's position, a SWOT analysis assesses its strengths, weaknesses, opportunities, and threats.

Strengths

• Military officers of Habib Bank Limited are among the most
  

professionals in the universe

Weaknesses

• Low job satisfaction
• Poor ATM service
• Highest number of subdivisions setting up the working environment in all the subdivisions
• Lack of professionalism in the subdivision employees mostly
• Sense of uncertainty in the employees serving at low good subdivisions due to the retrenchment subdivisions.
• Females feel uneasy in the working environment among male workers

Opportunities

• Huge potential market for consumer banking
• Opening of female banking sector which is a new idea
• Government policies provided for HBL to take advantages to efficiently solve their problems with immediate cash and funding services.

Opportunity to enhance new engineering: Habib Bank Limited offers the chance to utilize its accomplishments and efficiencies in the renting concern.
Menaces: The environment presents challenges that hinder the organization's high performance. These challenges include a deficit of trained staff from lower to upper levels, the growth of global technological advancements, strict regulations by the government, competition from foreign banks, and the increasing operations and advanced services provided by foreign banks to their clients.
Undertaking M2 Execution of Organizations Theory at Habib Bank Limited: Habib Bank Limited, one of the largest banks in Pakistan with vast experience in the banking system, has over 1439 branches throughout Pakistan and operates internationally. The organization follows a critical and centralized management style as reflected in its organizational structure.

The decision-making rights are concentrated in one individual, and the other employees are obligated to follow.

The bank adheres to classical theory, which emphasizes controlling workers' authority and responsibility. Employees require close supervision to perform their job well and correctly. Top-down authorization is necessary, with each employee responsible for specific tasks. HBL also follows Fayol's administrative theory, aiming to increase productivity. They have a centralized decision-making system where one person has the authority to make decisions, and others must comply. Communication flows downward, with managers using speeches, memos, etc., but employees lack autonomy for decision-making leading to demotivation. Each department knows its responsibilities and reports to respective managers who report to the organization's CEO.

Recommendations

Although Habib Bank Limited is Pakistan's largest bank, it still faces management issues that need addressing.

Their jobs must be approached in the following ways in order to succeed:

1. When hiring new employees, it is crucial to provide them with flexible occupation contracts. This is because there is no job security, which can easily demotivate employees and create fear of job loss.
2. New employees should undergo thorough training to develop their skills. This can include both on the job and off the job training. Proper development will motivate employees and enhance their performance towards achieving organizational goals.
3. In the banking sector, working hours are often unpredictable and can extend into late hours. It is necessary for the organization to provide transportation facilities to ensure employees' safe commute to and from work.
4. If an employee is burdened with excessive workload, HBL should hire additional workers to alleviate the pressure on existing employees.
5. Management should prioritize prompt responses to customer inquiries and foster strong relationships between employees and clients. Customer satisfaction is vital not only for HBL but for any
   

organization.

1. One important aspect that the direction team of HBL must focus on is providing effective client management development to their clients. This can be achieved through organizing preparation workshops and training clinics. This is crucial for HBL to attract more clients, especially when compared to other banks. As every bank wants to provide better and more flexible services to their employees and clients.