INTRODUCTION & HISTORY OF

MEEZAN BANK LTD

As Quaid-e Azam said:
"We must work our destiny in our own way and present to the
world an economic system based on true Islamic concept of
equality of manhood and social justice."
Therefore Meezan Bank worked out hard to fulfill the Quaids dreams, following
is the history of Meezan Bank.
Meezan Bank Limited, a publicly listed company, was incorporated on
January !, "##! and started operations as an in$estment bank in
%ugust that year. &n January, '' in an historic initiati$e, Meezan Bank
was granted the nations first full(fledged commercial banking license as a
dedicated &slamic Bank, by the )tate Bank of *akistan.
+uring the se$en years of its operation as an &slamic commercial bank
,from '' to ''#-, offering uni$ersal banking ser$ices to customers,
Meezan Bank has been one of the fastest growing banks in the history of
the banking sector. %$erage growth in deposits has been ../ per
annum during this period while the branch network grew from 0 to "11.
The bank has established a strong and credible management team
comprised of e2perienced professionals, that ha$e achie$ed a strong
balance sheet with e2cellent operating profitability and strong ratios,
which places the Bank at the top of the industry. The Bank has been
assigned a long(term entity rating of %3 and a short(term entity rating of
%(".
The Banks main shareholders are leading financial institutions of the
4egion namely, 5oor 6inancial &n$estment 7ompany, 8uwait, a leading
in$estment company based in 8uwait9 *ak(8uwait &n$estment 7ompany,
a rated financial entity in the country and the &slamic +e$elopment Bank
of Jeddah.

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The Bank has an internationally renowned Shariah Supervisory Board
Chaired by Justice (Retd.) Maulana Muhammad Taqi Usmani, an
internationally renowned i!ure in the ield o "hariah, #articularly
$slamic %inance.. The Board also includes "heikh &ssam M. $shaq
(Bahrain), Dr. Abdul Sattar Abu Ghuddah ("audi 'rabia) and Dr. Imran
Usmani who is also the resident "hariah 'd(isor o the Bank. )r. $mran
is assisted by a team o #roessionals, who strictly monitor the re!ular
transactions o the Bank and are also res#onsible or *roduct
)e(elo#ment.
By im#lementin! robust and a!!ressi(e strate!ic and tactical initiati(es
on the side o consumer bankin!, Mee+an Bank aims to ulill its #rime
tar!et o #ro(idin! customers accessibility and con(enience, within an
atmos#here and culture o dedicated ser(ice and reco!nition o their
needs. The Bank has a ra#idly !rowin! branch network across all ma,or
cities nation-wide.
't Mee+an Bank, we belie(e in addin! (alue to our customers. li(es
and businesses, throu!h dynamic and com#etiti(e #roducts and
ser(ices that ulil their needs while conormin! com#letely to the
dictates o "hariah. 't the same time, we endea(our to deli(er
com#etiti(e risk ad,usted returns to our stakeholders.

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VISION & MISSION STATEMENTS
OUR VISION
Establish Islamic banking as banking of first choice to
facilitate the implementation of an e:uitable economic system, pro$iding a
strong foundation for establishing a fair and ;ust society for mankind.
OUR MISSION
To be a premier Islamic bank, offering a one(stop shop
for inno$ati$e $alue added products and ser$ices to our customers within
the bounds of )hariah, while optimizing the stakeholders $alue through
an organizational culture based on learning, fairness, respect for
indi$idual enterprise and performance.

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OUR SERVICES MISSION
To de$elop a committed ser$ice culture which ensures the consistent deli$ery of
our products and ser$ices within the highest :uality ser$ice parameters,
promoting &slamic $alues and ensuring recognition and a :uality banking
e2perience to our customers.
CORE VALUES
)hari<ah 7ompliance

)ocial 4esponsibility
*rofessionalism

&ntegrity
)er$ice =2cellence

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>e had $isited Meezan Bank and conducted a short and snappy inter$iew of
Mr.%rif the ?perational manager as the @r manager didn<t gi$e us time, but
before inter$iew Mr.%rif had ensure us that he knows the working of @r
department and for his branch he use to submit report of performance of
subordinates. 6ollowing are the Questions that we asked him and the %nswers
gi$en by himA
#uestion 1
In your words how you define performance of employees?
Answer$
@e said in my wordsA(
#uestion

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&er'ormance is
&er'ormance is
(ul'ill
Assi)nme
nt
(ul'ill
Assi)nme
nt
*''icient
work
*''icient
work
Accuracy
o' work
Accuracy
o' work
+ime
,ana)emen
t
+ime
,ana)emen
t
What approaches your management uses to measure
performance?
Answer
@e saidA our management considers two approaches
Beha$ior %pproach
4esult %pproach
Behavio A!!oa"h#
They use different indicators to ;udge the beha$ior of their employee<sA(
+ress code.
*unctuality.
Beha$ior with customer.
*ro;ect management.
Beha$ior with peers B super$isors.
Beha$ior in stressful conditions.
&f the manager is absent then there are cameras from that they see the past
$ideos.
Re$%&' A!!oa"h#
MBL focus on result approach. They focus on the following points and
communicate these to their employeesA(
>hat the responsibilitiesCaccountabilities of the employee are as
mentioned in J+.
>hat are the ob;ecti$es of their ;obD 6or e2ample marketing manager<s
target oriented ;obs.
@ow the result will be measured i.e. performance standards.
Question

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Is there any appraisal system in your bank and what criteria for
this?
%nswer
@e said, yes there is appraisal system, and criteria for this are annually base, no
concept of self appraisal system.
The appraisal form is attached in the end for two le$els of ;ob.
Managerial le$el
?fficer le$el
Question
If employee performance is lacking than what your management
do to enhance back the performance of an employee?
%nswer
@e said, if employee beha$es suspiciously during working hours like speak in a
harsh $oice, hesitate to communicate with customers, peers and boss, feel
stressful in crowd of customers. Then our management does following actions to
moti$ate himA
&f employee has a problem with work assignments gi$e him a chance to
do other ;ob.
&f employee is uncomfortable to communicate gi$e him a time of
rela2ation to say his point.
Question
What is the process of taking feedback for performance
appraisal?

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%nswer
@e said, our management takes feedback from different sources, for each
employee,
7olleagues
?ther department officer
)ubordinates if any.
Boss, ,branch manager-
#uestion
Which approach is most important?
Answer
Both the approaches are important but the beha$ior approach is consider
more important in Meezan Bank
#uestion
What attributes your bank HR management consider
for measuring the performance of employees?

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Answer$
@e said, yesE There are criteria<s that our management considers for
doing e$aluation. These criteria<s had been settled from past many
years and are still the same.


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Managerial level
Managerial level
Technical skills
1ob competences
2esource mana)ement
Shari3ah knowled)e
Decision makin)
+rainin) 4 development
5ost conscious
2ules 4 re)ulations
Technical skills
1ob competences
2esource mana)ement
Shari3ah knowled)e
Decision makin)
+rainin) 4 development
5ost conscious
2ules 4 re)ulations
Personal skills
Stress mana)ement
&ositive attitude
Sense o' responsibility
Inte)rity
&unctuality
5ommunication
6earn work
6eadership
Personal skills
Stress mana)ement
&ositive attitude
Sense o' responsibility
Inte)rity
&unctuality
5ommunication
6earn work
6eadership
These are the attributes, detail of these and the scale use to ;udge these can
see in the appraisal forms in the end.

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Officer Level
Officer Level
Technical skills
1ob knowled)e
&roductivity
Shari3ah knowled)e
Attitude to deal
customer
#uality o' work
5ost conscious
&lannin) 4 or)ani8in)
Adherence to rules 4
Shariah
Technical skills
1ob knowled)e
&roductivity
Shari3ah knowled)e
Attitude to deal
customer
#uality o' work
5ost conscious
&lannin) 4 or)ani8in)
Adherence to rules 4
Shariah
Personal skills
Interpersonal skills
Sense o' responsibility
Dress code
&unctuality
&ositive attitude
+eam work
Stress mana)ement
Inte)rity
&roblem solvin)
Personal skills
Interpersonal skills
Sense o' responsibility
Dress code
&unctuality
&ositive attitude
+eam work
Stress mana)ement
Inte)rity
&roblem solvin)
Target jobs
Target jobs
+ar)et achievements
#uality o' business )enerated
+ar)et achievements
#uality o' business )enerated
(%e$'io)
What is performance management process in !"?
Answer
STEP 1:
The knowledge of the mission and organization strategies B goals are properly
communicated to the employees, through regular meetings B the e2pectations
from the employee are also informed
Job descriptions of employees contain all the information regarding the ;ob. The
;ob descriptions are anne2ed to in the appendi2

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&re-
2e9uisite
s
&er'ormance
&lannin)
&er'ormance
*:ecution
&er'ormance
Assessment
&er'ormance
2eview
STEP 2:
%s it is necessary to communicate what the organization e2pects from the
employees. Therefore MBL management conducts such meetings B informs the
employees about the results, B beha$iors re:uired for that ;ob.
STEP 3:
*erformance e2ecution of the gi$en task is done by both the employee B the
super$isor, both fulfill their responsibilities.
STEP :
The assessment is based on timely appraisals ,yearly- B beha$ior is obser$ed at
regular inter$als in the process. )elf assessment by employees is not
recommended by the MBL management.
STEP !:
The manager completely re$iews that what responsibility was assigned, how
much is fulfilled,, time management for the task, if some left pending then whyD
%t this step if some training is re:uired then it is gi$en B the system again
continues.
S*OT ANALYSIS OF HR DE+ARTMENT OF MBL

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ST"E#$T%S
"st &slamic bank
The =mployee at the bank treat the customers $ery respectfully
,customer the king-
6riendly working en$iournment
+edicated B professional staff
Food team work
)trong relationship with customer
>ell trained employees B regular training programs
*EEKNESS
+egree of satisfaction of employees is low
+issatisfaction leads to high turno$er
5o trainings for new employees
The hr manager does not come personally, to $isit the employees B ask
them about their problems, grie$ances B conduct their appraisal.
Gna$ailability of enough financial resources
O++ERTUNITIES
Frowing demand of &slamic financial ser$ices B products
&ncrease in the strength of the department
&ncrease number of branches will increase the scope B working of hr
department for better management
Fo$ernment policies are in fa$or
THREATS
&ncrease in competition
%d$anced technology
Better offers of bonuses, rewards B handsome salary packages by
other banks

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O%'"o,e o- o% !o.e"'
&n Meezan Bank we ha$e obser$ed that there is a working of @4 department but
not as much ad$ance as it is re:uired, to be a successful bank in the country.
+uring inter$iew we had asked different :uestion about performance
management system and the process to measure the performance of their
employees, but we had not recei$ed the information as much related to the
terms that we ha$e studied in our course.
The /i--ee)"e$ 'ha' 0e ha/ o1$eve/ ae 'he -o&&o0i)2#3
They said they use two approaches, beha$ior approach, result approach, but
they use them in a general way not as specified in our course contacts,
Behavio a!!oa"h#3
They said they use this approach, as we e2plained this earlier, but they don<t
know the basic terms which they should know for better performance
measurement.
Like they compare employees with eachother, that is differentiating
competencies,
They prefer :uality beha$iors that to show with standards, that is
threshold competencies,
6or measuring these competencies there are two methods
%bsolute systems
7omparati$e systems
There @4 manager should make a training programs for their employees so they
can understand the basic terms and use them in the e$aluation process.
Re$%&' A!!oa"h#3
They do not focus on MB? as such if they will do so then they can get better
results B can measure them with more accuracy.

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Fee/1a"4 !o"e$$53
They take feedback from different sources that process is called H1'
degree feedback but they don<t know this term.
+e-o,a)"e ,a)a2e,e)' $6$'e,53
The performance management system implemented at MBL lacks some points
likeA
+uring the second step of performance planning they do not focus on
de$elopmental plans. This sometimes leads to poor performance. &f they
train the employees at this step they would be able to sa$e time, cost B
get better results.
The si2th step of performance renewal is missing. &nclusion of this step
would yield better output.
Re"o,,e)/a'io)$
@4 manager should come to $isit the employees personally to do their
appraisals B listen to their grie$ances.
They should focus on better training opportunities for their employees.
6or increasing the satisfaction le$el of employees, they should introduce
better reward systemsCpolicies.
=mployees should also be gi$en a chance of self assessment.
The little bit communication gap lies between the super$isor B the
employee regarding the appraisals which should be reduced.
MBL should focus on feedback regarding appraisals from both employee
B super$isor.
%n attempt should be made regarding the employee understanding of the
performance appraisal system.

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