With the diversity of culture in Pakistan, local and foreign banks have relatively the same operating strategies. These strategies do change depending on the city or the cultural strength in that city but the strategies within the same city of almost every
bank is the same. The banks we have discussed in our findings and analysis are
situated in the major financial cities of Pakistan (Islamabad, Rawalpindi, and Lahore)
and the small strict Islamic law city of Quetta. Recruitment and selection mainly
takes place in head or regional offices in Pakistan. However because of the informal
recruitment and selection process in Pakistan, sometimes branch managers also
refer the appointment of a new employee with their own or with mutual consent of
the regional HR office.
In this research, questionnaire were send to the HR and Branch manager of the
selected banks in selected cities as discussed in methodology chapter. The analysis
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and results will be presented in three major sections. They are
ï‚§ Role of HR in banking sector of Pakistan
ï‚§ Cultural influence on Pakistani business.
ï‚§ Recruitment and selection difference among Pakistani and foreign banks.
5.2 ROLE OF HR IN BANKING SECTOR OF PAKISTAN
We will start our analysis with the discussion on the role of HR in the banking sector
of Pakistan. As the banking sector is flourishing in Pakistan, we will see how local and
foreign banks' HR departments deal with the operating & cultural strategies in
Respondents from Pakistani banks agree that HR in Pakistan is fully operational.
While majority of foreign banks agree with Bhatnagar and Sharma 2005, Bird 2004
that HR in Pakistan is still in the introductory stage. Pakistani business environment
(Khilji 1996, Khan et al. 1996) and our limitations shows that we faced this problem
in accessing the HR departments of banks in Pakistan and after the privatization in
mid 90's and more foreign investments in Pakistan, the banking sector is growing
fast but not at the international standards. This proves that HR is still in its
Further research shows that besides its work as separate department, HR in both
Pakistani and foreign banks is involved in a company's operating strategies. Although
foreign banks have set benchmarks and higher international standards than other
local banks to achieve and compete with, HR plays a vital role in the recruitment and
selection process of Pakistani banks and has effective training programmes for
employees in both local and foreign banks. Respondents in two Pakistani banks (ACB,
BAL) said they have low expectations from HR departments but are satisfied with
5.2.1 Differences within Standard Chartered Bank
A slight change has been noted within SCB's operating strategy in Pakistan. Its
Islamabad and Lahore branches' strategies differ with the SCB Quetta branch. The
main reason is that; Quetta is culturally different from Islamabad and Lahore. A strict
Islamic city with lower level of education, living standards and infrastructure makes it
different from other major financial cities. Another reason is at SCB's (Quetta),
recruitment and selection is done in their regional head office. The officers in SCB
(Quetta) deal mainly with consumer banking and are not fully operative in the
recruitment and selection process.
5.2.2 HR main focus in bank
In this statement, we'll analyse which area HR is mostly focusing on. The HR role is in
its introductory stage but putting its mark strongly in HR area. With the arrival and
strong competition from foreign banks and after privatisation specifically, local banks
are showing positive results especially in HR department which was a forgotten
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department a decade ago. Nearly all the four Pakistani and foreign banks strongly
agree on the role of the HR department's contribution in recruitment and selection,
employee development and training programmes. All four Pakistani and foreign
banks are highly satisfied with HR's contribution in each of the above areas. A slight
dissatisfaction has been noted in the promotion and bonuses area of both Pakistani
Always on Time
Marked to Standard
and foreign banks. Two Pakistani banks (UBL, HBL) are old banks with vast branch
networks and apparently they are not happy with the promotion and bonuses
structure, while the other two new and private banks are contributing more towards
promotions and bonuses. Similarly in foreign banks the low expectations in
promotion and bonuses is because of the limited foreign banks in the country. Very
few job placements are open for external jobseekers. This makes strong competition
within the banks for employees to retain themselves. High demand of foreign banks
among all sorts of Graduate students and experienced workers is affecting the
promotions and bonuses of employees. Foreign banks are creating "a take it or leave
it" situation in banking sector. Foreign banks are maintaining the banking standards
in recruitment and selection and employee's relationship. Competition among
employees and tough targets from bosses and managers are making it difficult for
employees to put their hands on bonuses, but foreign banks do take care of their
employees with quick promotions and higher salaries.
5.3 CULTURAL INFLUENCE ON PAKISTANI BUSINESS
1: Culture plays a main role in Recruitment & Selection process
As discussed earlier in our literature review an understanding of culture plays an
important role in any organisation's business when they go abroad. From the
responses to our questionnaires we have found that all four Pakistani banks agreed
with Hickson and Pugh (1995), Hofstede (1988- 94) and Paige (1999), that culture
plays an important role during the process of recruitment and selection. Large
network of branches in every part of Pakistan forces local banks to understand the
cultural requirement of that area. On the other hand SCB ISB & LHE (British Bank)
and CITIBANK (USA) disagree with the importance of national culture during
recruitment and selection. They agreed more with Khilji (1996), Jacob (2005),
Jackson (2004) and Plakhotnik and Rocco (2006), that it depends upon the area and
city of operation. Foreign banks' emphasis is more on multicultural operational
strategies. From the analysis, we can see that SCB, which is operating in Pakistan for
more than 150 years and has just acquired a local bank, has a mixed response. In the
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major cities of Lahore and Islamabad SCB are not as fully agreed as cities in Pakistan
are having a common urban culture. In SCB Quetta they do consider local culture
during recruitment and selection. Strong Islamic culture in Quetta is because of the
geographical location which is a is a city in the east of Pakistan close to Iran and
Afghanistan and has a strict Islamic environment.
2: Political involvement (personal recommendation)
As a part of culture, political involvement of country does affect the recruitment and
selection process and strategies of a company. Pakistani banks disagree with
Hofstede (1988); Tarique et al. (2006); Khilji (1996) and Yan 2003, that there is
political involvement in their operations and during the recruitment and selection
process (direct or personal recommendation). Being a local bank it is easy for them
to commence and operate their business with the help of GOP and SBP. On the other
hand foreign banks disagree but did not deny the political involvement or personal
recommendations depending on the area and city and agreed with Carroll et al.
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(1999) and Hurn (2006). On asking them, they mentioned that there is no
involvement from the government in the operation, but SCB-LHE and SCB-QTA
agreed that sometimes recruitment and selection does involve personal
recommendations from the top management internally.
3: Government and legality do affect business strategies (Pakistani Laws)
As part of culture, the national cultural laws and legalities do affect the operating
system of multinational companies. Pakistani banks disagree with Khilji (1996-2001),
Budhwar and Khatri (2001) and Hofstede (1988), that government legalities and
policies are affecting their operating and business strategies. Local banks, being part
of the country, are not so affected.
Contrary to local banks, Pakistani laws and legalities highly affect the business
operations and strategies of foreign banks. Foreign banks have to work, if not fully,
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but partially under the Pakistani government and banking rules as shown in the
5.3.1 Role of Islam in Recruitment & Selection
As we have discussed earlier in our literature (Khilji 1996-2001) Islam is a major
cultural trait for multinational organisations in Pakistan. More than 95% of the
population is Muslim in Pakistan. People try to live according to the Islamic faith and
laws told by Prophet Mohammad (PBUH) and in Quran. With the changing global
business scenario and fast and open media, Pakistan is also taking steps to move
with and closer to its western countries. In this section we will analyse the role of
Islam on Pakistani business culture and its affect on it. (Tayeb 1997 and Khilji 1996).
To start with the local banks, we have analysed that besides being an Islamic
country, Islam does not play a role in a company's operating strategies. All the four
banks have disagreed that Islam affects their company's business and operating
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strategies. In our literature review (Khilji 1996-2001 and Tayeb 1988-97) proved that
Islam does not play a role in a company's operating strategies. This also leads
towards recruitment and selection. All the four Pakistani banks disagreed that Islam
is involved in the recruitment and selection process which shows equal opportunity
procedures in Pakistan. These findings agree with Hofstede (1988) and Hampden
Turner & Trompenaars (1995- 97) research, who did not consider religion as part of
business culture. All the local Pakistani banks strongly disagreed that they give
priority or favour to candidates who have Islamic education from Islamic colleges or
universities. There is no favouritism on religious grounds which indicates that all the
recruitment and selection process in local banks of Pakistan is on a merit basis rather
than on religious or higher Islamic educational backgrounds from renowned
For most of the foreign banks and organisations, Pakistan is considered to be a strict
Muslim country. As a Muslim country with diverse culture and languages and a fast
growing economy, makes multinational organisation think of how to enter the
market and sustain rather than to earn profits. In fact most of the multinational
organisations are doing well because of their research on the culture of Pakistan.
Despite the strong Islamic environment, foreign banks disagree that Islam changes
companies operating strategies. If we analyse SCB in Pakistan, they disagree that
Islam changes their operating strategies in Pakistan but having been operating in
Pakistan for the last 150 years, they do understand the extent of Islam in Pakistan.
They were the first foreign bank to start Islamic banking and Islamic products
according to Sharia law. In our analysis, we see that foreign banks also strongly
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disagree with the involvement of Islam during the recruitment and selection process
and that there is no favouritism or priority to the applicants who have Islamic
educational backgrounds or who are graduates of Islamic colleges and universities.
All the recruitment and selection is based on equal opportunity and merit according
to the job requirement which they agreed with it.
In response to the Islamic involvement, SCB did change their business strategies than
their standard operating strategies in case of SCB Quetta. Here they disagree with
Khilji (1996- 99) and Tayeb (1997) about religious importance in the recruitment and
selection and business strategies. Rather they agreed with McSweeney (2002).
Quetta, as we had discussed earlier, is a strict Islamic city with strict Islamic rules for
business, religious concern and low education, all under the Islamic influence. On
asking from branch manager that why Quetta have been high and agreed with
Islamic business strategies and priority to Islamic knowledge and degree holder
candidates in the recruitment and selection. The manager of that branch responded
that the people of Quetta city are not highly educated but are highly influenced by
Islamic laws and Sharia and do business under strict Islamic laws where there is no
interest. SCB recruit and select candidates who also have an extra knowledge of
Islamic background to deal with such customers. SCB have introduced interest free
banking under Sharia law with interest free loans and financing.
While ABN AMRO bank signed a strategic alliance with one of the biggest Pakistani
Islamic bank (Al-Meezan investment bank) and issued Riba free investment
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certificates. Contrary to SCB, Citibank and ABN AMRO are still in negotiation with SBP
over issuance of licence on Islamic banking.
4: Bureaucratic business environment
Bureaucratic environment in the organisation tells us about the power distance in
the company. This bureaucratic environment can affect the two way communication
and employee's performance and promotion.
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In response to the bureaucratic atmosphere in the company, surprisingly Pakistani
banks disagreed with Khilji (1996) and Ratnam (1998) and denied having a
bureaucratic or bossy atmosphere or attitude towards employees in the company.
On the other hand, we have seen rather different situation. The majority of the
foreign banks do admit to having a bureaucratic atmosphere and bossy attitude
towards employees. The reason behind this is that foreign banks are few in number
with an extra burden on employees. To maintain the level of standard in the
branches, bosses have to be strict towards their targets and tasks which sometimes
create a bossy atmosphere and affect employee's performance. While working for a
multinational organisation in Pakistan, it does create a bureaucratic atmosphere. All
the top management of foreign banks are foreign qualified with vast experience and
with strong family backgrounds which does create a gap between top and lower
5: Hierarchy and Communication with higher management
Pakistan is among those countries where the level of hierarchy is high. Pakistani
banks and foreign banks agreed with Hempden turner & Trompenaars (1995-98) and
Khilji (1997) about having a high hierarchy in their organisation. All Pakistani and
foreign banks agreed that communication with the top management is easy. This
high hierarchy in Pakistani banks is not creating bureaucracy or a culture of the
individual, as we have analysed earlier. Research also shows that there is mixed
culture in most of Pakistani and foreign banks.
On the other hand, Citibank disagree that they have high hierarchy in their
organisation. Citibank have low hierarchy level because of the few branches and a
HQ in Karachi. All the employees are answerable to a department manager who is
answerable to a branch manager which shows an American business culture in their
Citibank have a different scenario. Even though the hierarchy in Citibank is not high
in Pakistan, according to American cultural hierarchy, the communication level is
quite low. Citibank agrees with Bonaccorsi di Patti and Hardy (2005), Khilji (2002),
and Bird et al. (2004), that there is lack of communication with higher management.
This also shows the power distance (Hofstede 1988) in the bank's culture. Citibank as
an American bank with an aggressive approach and few branches in Pakistan which
makes the business environment more competitive for employees with targets
assigned to them by their bosses. Citibank in Pakistan always try to hire the best
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graduates and experienced employees and expect a result from them lower down
the level of communication.
6: Collectivist or individualistic
Nearly all the Pakistani and foreign banks have disagreed that they prefer individual
task completion than team working and agreed with Hofstede (1988), Hofstede &
Peterson (2000), Hampden Turner and Trompenaars (1995-2002) and Khilji (1996).
Under Pakistani cultural influence, organisations do inherit the cultural spirit of
working together. Research also shows that the culture in all the local banks is more
collectivist. The foreign banks in general do have a collectivist culture, but Citibank
(USA) disagrees that they have a collectivist culture. The working culture in Citibank
is mixed. It is more or less functioning in teams but the overall competitive and
target oriented culture makes employees focus individually on their task completion.
This culture is more likely to be influenced by both American and Pakistani culture.
7: Bank's culture Influences from American/British organisation culture.
Two Pakistani banks (ACB, BAL) strongly disagreed with Khilji (1996-99) and Tarique
et al. (2002) that they are influenced by American or British organisational culture.
But the other two banks (UBL, HBL) which are old and have worked during the British
time in subcontinent, do have British influences on them. ACB is influenced under
the army of Pakistan as it was first opened with funds from the Pakistan army. Half
of the board are still army personnel but this is gradually changing. Citibank has its
own culture influenced by American and Pakistani culture.
8: Masculinity or femininity
In our literature review, we mentioned that Pakistan is half way in masculinity and
femininity in Hofstede research of culture (Hofstede 1988, 1994 and 1998b). With
the change of time and the growing economy of Pakistan influenced by British and
Americanisation, Pakistan is moving towards femininity. Research shows that
growing media and foreign influence have changed the culture and helping to bring
women into the working sector. More and more women are playing a part in the
local and foreign business organisations of Pakistan. Two out of four Pakistani (ACB
BAL) banks disagree that they have a masculine oriented culture and agreed with
Hofstede (1988) and Khilji (1996). The other two banks (UBL & HBL) are the old
national banks with Pakistani cultural traditions and British influence. This is
changing a lot, but being a large organisation, they still possess a masculine culture.
On the other hand, foreign banks also have a culture moving towards femininity.
However in case of SCB Quetta, who disagree with both Khilji (1996) and Hofstede
(1988, 1998b), where female employees are playing vital role now, still possesses
and are dominated by a masculine approach because of its Islamic laws and
conservative attitude towards women working.
Pakistan was on halfway between masculine and feminine, this research indicates
that Pakistani culture is changing and moving more towards a feminine culture.
9: Local/foreign banks are competitors
In response to this, Pakistani banks consider their local and foreign rivals as big
competitors and agreed with Bird et al. (2004) and Cooke (2003). On the other side,
foreign banks have different response. Foreign banks do consider their local and
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other foreign banks as their rivals, but every foreign bank has different operating
strategies in Pakistan. SCB have their change strategies according to the area, as in
case of SCB Quetta. Citibank have different operating strategies from any other bank.
Their aggressive operating strategies make them less competitive to other banks but
more monopolistic. As the only American bank with few branches, Pakistan's
industrial sector's import and export mainly depends on Citibank especially in deals
with America. Citibank is generating profits and have captured market regardless of
their fewer branches.
10: Job satisfaction & security
In nearly all the local banks, respondents have shown their satisfaction with the
company and job security in long term. The boom in the banking sector has brought
huge changes in the cultural setup, operating strategies and employees
relationships. On the other hand, foreign banks have mixed responses on this. Job
satisfaction and security in the long term depends on the overall performance of the
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employees. Foreign banks are providing the best organisational structure and
environment with employee satisfaction. But they do demand results in return which
sometimes makes it difficult for employees to fulfil and puts their job in danger.
RECRUITMENT & SELECTION POLICIES
Fig: 4.1 "Company does have proper R&S policy for Workers"
5.4: RECRUITMENT & SELECTION DIFFERENCE AMONG PAKISTANI AND FOREIGN
Most of the foreign and Pakistani banks work under the banking ordinance and the
laws of the state bank of Pakistan. The majority of the banks have to fulfil a certain
level of banking requirements according to the Pakistani banking laws. Foreign banks
had played a big benchmark role in bringing the banking industry to new horizons in
Pakistan. Today, with growing economy and tough competition in south Asia
particularly in Pakistan, local banks are trying to achieve the same level as foreign
banks. The major development has been achieved in the HR department of Pakistan.
This HR development brings better employee relations in the banking industry. This
is mainly achieved by proper recruitment and selection of employees. In this section
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of our analysis, we find out the differences among the recruitment and selection
process of local and foreign banks in Pakistan.
In our literature review, we have discussed informal and formal recruitment and
selection process. In this analysis we will find out about how the local and foreign
banks adjust their recruitment and selection process with the local cultural traits and
the level of their emphasis on each step. As discussed earlier, majority of the local
and foreign banks disagree with the informal recruitment and selection process.
Higher competition and more skilled people make it clear and straightforward for
banks to hire the best in job market. In our findings, we will analyse how local and
foreign banks work during each step of recruitment and selection.
1: Proper R&S process of worker and managers.
Research shows that all Pakistani and foreign banks strongly agree with Edwards and
Rees (2006) and Aycan (2005) that they have a proper recruitment and selection
procedure for workers and managers in their organisation (aside from the
recruitment and selection for workers done in the regional or main HQ).
2: Special quota system for rural candidates.
The majority of the Pakistani banks agreed with Payne (1995); Carroll et al. (1999)
and Hurn (2006) on having special quota or seats for rural candidates. With their vast
branch network in most cities and towns of Pakistan, local banks hire mostly from
those rural area with special seats for disabled people.
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On the other hand, foreign banks especially ABN AMRO & Citibank, not having
extensive coverage of branches in Pakistan, mostly disagree or are not sure about
the special seats for disabled and rural applicants. The majority of foreign banks have
their branches in the major financial cities of Pakistan. Citibank have only 6 branches
in Pakistan. This makes foreign branches hire internally or from the best from the
3: The Recruitment and Selection process is highly organised in local and/or MNC
Nearly all the Pakistani banks agree that they have a more highly organised
recruitment and selection process than their local and foreign rivals. On the other
hand, out of the three foreign banks, two (SCB and ABN AMRO), agree they have a
highly organised recruitment and selection system. While Citibank does not consider
their process as highly organised as other rival banks and disagrees with Gamble
(2000) and Dowling et al. (1993). The main reason is that they have very few
branches with a low hierarchy and more internal hiring.
4: Special Recruitment and Selection rules rather than standard operating rules in
With wide network branches, Pakistani banks agree with the special R&S rules made
for the Pakistani market. Growing Islamic banking is one of the major areas where
local banks are putting their efforts. Most of the foreign banks work with their
standard banking rules used worldwide, but also change their rules depending upon
the area (Hofstede 1988-97 and Khilji 1996). This is the case with SCB-QTA, in a strict
Islamic small city.
The introduction of Islamic banking by SCB in Pakistan makes them the first foreign
bank to introduce Islamic banking. The strong growth in Islamic banking is pushing
foreign banks to introduce or alliance with Islamic banks.
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5: Discrimination laws and acts (gender, disable, and race) is fair-play in your
With the flourishing banking industry and strong benchmark from foreign banks,
Pakistani banks are also taking strong role in eliminating discrimination from the
industry. Most of the Pakistani and foreign banks agree that all discrimination acts
are fair-play in their organisation. A decade ago with less participation from women
in jobs, discrimination on rural and urban bases with high bureaucratic and
favouritism in business organisation made local companies hard to work.
6: Online application and Walk in resume
The results and chart shows that all Pakistani and foreign banks are using online
applications as part of their recruitment and selection. Similar responses were given
with regard to the statement relating to the walk in resume. The majority of
Pakistani banks agreed with it, while the majority of foreign banks did not consider
walk in resumes in their recruitment and selection process. They want every
application to be mailed, posted to their HR department, HQ or regional HQ for jobs
(except for internships). The online application process is widely used in western
countries to save time and expenses.
7: Dept tells HR for their required person and job advertisement.
In the majority of local and foreign banks, departments tell the HR department of the
persons required for their departments. After job analysis, the HR department
advertise jobs in the media. The majority of local banks strongly agree that they
advertise their jobs in media externally for hiring more than internal advertisements,
depending upon the job requirement. On the other hand, foreign banks also
advertise jobs in media but they put more emphasis on internally hiring.
8: Institute of Bankers used for bulk hiring
There is a huge difference among local and foreign banks in their part in the Institute
of Banker for bulk hiring. Local banks having larger number of branches in the
country and with huge number of applicants have to use the Institute of Bankers as a
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third party recruiter to choose suitable employees, depending upon the seats
Foreign banks disagree with the use of the Institute of Bankers, mainly for two
reasons. One is that the Institute of Bankers works mainly for local banks under
Pakistani banking ordinances and the second reason is that foreign banks do not
have enough job spaces open to engage the Institute of Bankers for hiring. Most of
the time foreign banks use internal hiring or advertising.
9: One to one or group interviews and assessment centres.
Pakistani banks are in high agreement with Ludlow (1991) and Millmore (2003) on
one to one interviews in the recruitment and selection process. They place more
emphasis on one to one interviews than group interviews. Pakistani banks also
agreed with Maitland (1997) and Edenborough (2005) about using assessment
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centres for aptitude and written tests. The last decade had brought lots of changes in
the banking sector because of economic development.
On the other hand, foreign banks use assessment centres for recruitment and
selection to select the best applicant after different written and group tests. This use
of assessment centres also put emphasis on the group interviews as part of their
aptitude test than one to one interviews. Group interviews identify the ability to
work with other team members.
10: Contractual or Permanent Hiring
Results and the chart shows that all the local banks are highly agreed with the
permanent hiring. Contrary to permanent hiring, Two (HBL, UBL) out of four local
banks disagree about the contractual hiring in recruitment and selection. These two
banks (HBL, UBL) were old national banks under the government and turned into
private banks during mid 1990s. The other two banks (ACB, BAL) are new private
banks and considered best among the new local banks. Banks use contractual hiring
to save training and other expenses.
Contractual hiring in Pakistan is a six month probation period after that it can be
turned into permanent contract depending on the performance. Contrary to local
banks, foreign banks are in favour of contractual hiring. Foreign banks are seemed to
be the pioneers of innovation in recruitment and selection process in Pakistan.
Contractual hiring is started by foreign banks depending totally on employee's
performance and past experience.
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11: Higher education matters
Three out of four banks agreed that higher education matters in recruitment and
selection. On the other hand foreign banks also agreed with the requirement of
12: Past/Related work experience matters.
Two (ACB, BAL) out of four local banks disagree that past work experience matters
during recruitment and selection process. One interesting thing is that these two
banks are new private banks. This shows that these banks welcome fresh graduates
and applicants in their organisations. While one bank disagreed that they require
work related experience in their recruitment and selection process (Edward and Rees
2006). On the other hand majority of foreign banks strongly agreed that the past
work experience and work related experience does matter during recruitment and
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13: English language/Special skills matters
In a country where patriotism and Islamization is at an extreme level, both local and
foreign banks highly agreed on knowledge of English language in recruitment and
selection process. Foreign banks highly agreed on the knowledge of English language
to compete with local and other foreign banks and higher standards.
Same results in the area of special skills for both local and foreign banks. Today in a
high-tech age, special skills in applicants put him or her in front of everybody else
(Budhwar et al 2006).
14: Past work references matters
Majority of all local and foreign banks agreed on the requirement of past work
reference in the process of recruitment and selection (Aycan 2005 and Wright et al.
15: Family background and Medical clearance matters
Only one bank out of four local banks agreed that family back ground matters during
the process of recruitment and selection. While on the other hand, only one
respondent agreed on the requirement of family back ground. The majority of the
difference among foreign banks is because of the different places with different subculture.
The majority of Pakistani and foreign banks disagree with family background
and medical clearance in recruitment and section process (Hall 1997).
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The above mentioned are some of the differences among national and foreign bank's
recruitment and selection processes.
5.5 Challenges faced by Pakistani & Foreign Banks 'Banker's Point of View'
The major challenges faced by the Banking Industry of Pakistan are:
ï‚§ Shortfall of highly skilled professionals.
ï‚§ Central Bank regulations.
ï‚§ Streamlining hierarchies.
ï‚§ Employee motivation
ï‚§ Hiring the right talent
ï‚§ Making people analyze their needs and demands.
ï‚§ Making people get aware of the Consumer Financial solutions.
ï‚§ Competitor's strategies towards hiring.
ï‚§ Quality Assurance.
ï‚§ One window operations.
ï‚§ Employees need more incentives and perks, so in order to reduce turnover
the ratio of incentive should be raised otherwise the budget and time
constraint will keep affecting the industry.
ï‚§ Attrition in company's trained HR due to enormous growth in local banking
ï‚§ Availability of trained resources in the market.
ï‚§ Newly emerging and fast growing banks having set objective in mind of
improving company's overall strategies and policies which provide better
recruitment and selection strategies.
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ï‚§ Political instability and law and order situation in Pakistan.
ï‚§ Requisite knowledge not imported to students in their higher education.
These challenges faced by foreign and local banks can be overcome if Pakistani
educational, Islamization, bureaucracy, business culture and government all sit
together to approve set objectives. These objectives will not only going to help
multinational companies but also local companies in order to be successful and
create bright future for Pakistani nationals and Pakistan itself to emerge as a
successful nation on the map of the world.