Critics on Hbl Management

Topics: Management, Bank, Human resource management Pages: 12 (3248 words) Published: June 1, 2010
Mission and vision of HBL totally reflect that it exist only to achieve profits . It creates a negative image in the society. The mission of hbl totally ignores the concept of corporate social responsibility. HBL have abundant resources (Largest HR , effective and vast information technology system and abundant capital ) but not yet at the position according to its resources. The reason of such lagging performance is due to non commitment of employees to HBL.In the city of Gujranwala for example, you will find no place to obtain cash from credit cards or traveler's checks, though this city is the fifth largest city in Pakistan.

HBL now a days is diversifying its business in international market and opening its branches into new countries which is creating loss to HBL showing weak planning.


“Planning tools are techniques mangers can use to help develop plans”

HBL is using a FORECASTING, TIME SERIES ANALYSIS METHOD tools when develop plans

FORECASTING is a planning tool used to predict future environment happenings that will influence the operation of the organization. It includes political economical condition, consumer income forecasts than we plan.

TIME SERIES ANALYSIS METHOD is to predict future sales levels by analyzing the historical relationship in an organization between sales and time.

Critics on Objectives:
Objectives are basically branches of mission statement. As they flow from the purpose or mission of the bank. They are developed after analyzing environmental trends. In setting an objectives mainly small branches are ignored and most of the consideration is done to the large branches with full fledged facilities. For example in a small branch where online facility , ATM and sufficient financing facility is not present can not perform well but the objectives and targets assigned to them is extensive to their resources.

Omnipotent view of management conflicts with Open system:

In HBL there is an open management system
“An open management system is one that is influenced by and is continually interacting with its environment.” EXTERNAL FACTORS include political, social, demographic, consumer, economic, state bank policies and rules effect the bank. The threat of inconsistency and government policy regarding to business and economics sectors, specially political and regional situation which makes the environment uncertain. The Hbl believe on omnipotent view of management that managers are directly responsible for the success and failure of the organization. As HBl is an open system so many external factors that are beyond the control the managers are held responsible for that factors also they must believe on symbolic view of management. Managers are neither helpless nor all powerful. Internal and external constraints resist to the managers performance so HBL should encourage their managers so and facilitate them to cope or minimize such external factors.

Centralized Decision Making
By looking at the organizational structure of HBL would be found that the structure at HBL is a critical one. All the decisions are made at the top management level and the subordinates have to obey these decisions. This trend in the decision making shows a pattern of rigidity in structure of HBL. The HBL mangers focuses on intuitive decision making. At branch level the managers usually takes programmed decisions that are routine and repetitive. The managers at different branches lack the skills to deal with non routinized and uncertain situations.

Partial applicability of MBO:

A fake MBO system exist in HBL. The targets are not mutually set, the RC’s fosters their decisions and assign targets to different branch level managers and while evaluating targets usually lose talk is practiced. Actually the HBL still implement the traditional goal setting management where objectives are set at top level and then communicated to the regional level to different...
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