Implication of HR Practices

Submitted to:
Ms. Khadija Saqib

Submitted by:
Nida Khalil 52
Suman 59
Muhammad Noor Khan 69
Waqas Raza 100
Zeeshan Ahmed 102
Zeeshan Ali 103

University of Education
 Acknowledgement
Thanks and again thanks to Allah Almighty,
who pulled us through the times when every stone was turned against us.
He and only He dawned new horizons for us when the darkest fog made us blind,
who is really the Best Manager of the entire universe.
Without His consent, nothing is possible.
Thank You Allah Almighty.
Thanks from the recesses of our hearts to our to
the Most Respected Teacher, Maam Khadija
for his Untiring efforts, Her Valuable Guidance and Precious Advices
are rare Assets for Us.
We would also like to pay a very special Thanks to Mr. Ali (relationship officer) for
giving us some moments from his busy routine and providing us such valuable
information.
Dedicated to:
Our Honorable Teachers & Loving Parents
Whose,
Love, Affection, Motivation, Patience, Support
&
Spiritual Inspirations
Give us Encouragement,
To all those People who have quenched for Knowledge,
To all those who have dedicated their lives to others,
To all of those who have served and sacrificed for
Sake of Freedom
To all of those people, who may be gone now,
But they will never be
Forgotten....
Purpose of the Study:
Practice makes the man perfect is a proved saying.
So, the purpose of this project is to get
the know how about the working procedure of H.R.Department.
It is purely study base project,
which we have accomplished by the grace of ALLAH.
We learned lot of experience and so more.
 Contents
SUMMARY .......................................................................................................1
INTRODUCTION TO REPORT ..........................................................................2
INTRODUCTION TO BANK ..............................................................................2
COMPANY PROFILE .........................................................................................3
VISION .............................................................................................................3
MISSION ..........................................................................................................4
VALUES ............................................................................................................4
HISTORY ..........................................................................................................5
The Pre Independence History (1942 to 1947) ............................................................... 5
Allied Bank (1974 to 1991) ............................................................................................ 7
Allied Bank (1991 to 2004) ............................................................................................ 7
(2005 to date) .................................................................................................................. 8
BOARD OF DIRECTORS .................................................................................10
CONSUMER....................................................................................................11
COMMERCIAL................................................................................................18
Services ......................................................................................................................... 20
Internet Banking............................................................................................................ 20
CORPORATE ..................................................................................................20
Corporate Banking ........................................................................................................ 21
Investment Banking ...................................................................................................... 21
Financial Institution ...................................................................................................... 21
Branches & ATMs ........................................................................................................ 22
WORKING ENVIRONMENT ...........................................................................22
Area of operations ......................................................................................................... 23
THE SHAREHOLDERS ....................................................................................24
Private Sector Bank....................................................................................................... 24
Public Sector Bank ........................................................................................................ 24
Multination Bank .......................................................................................................... 24
ORGANIZATION HIERARCHY ......................................................................25
DEPARTMENTS ..............................................................................................26
PRODUCT & SERVICES .................................................................................26
HR DEPARTMENT.........................................................................................27
STAFFING ......................................................................................................28
Nature of Staffing: ........................................................................................................ 28
Staffing is an important managerial function: .......................................................... 29
 Staffing is a pervasive activity: ................................................................................. 29
Staffing is a continuous activity:............................................................................... 29
The basis of staffing function is efficient management of personnels: ................... 29
Staffing helps in placing right men at the right job: ................................................. 29
Staffing is performed by all managers: ..................................................................... 30
Importance of staffing: .................................................................................................. 30
RECRUITMENT AND SELECTION PROCESS ..................................................31
JOB ANALYSIS ...............................................................................................34
Job Specification in outsourcing ................................................................................... 35
Job Description in outsourcing ................................................................................. 36
Job Specification in regular Staffing............................................................................. 37
Job Description in outsourcing ................................................................................. 37
TRAINING, RETRAINING AND DEVELOPMENT APPROACH.......................38
Training ......................................................................................................................... 38
Retraining ...................................................................................................................... 38
DEVELOPMENT:.............................................................................................39
Off-job training approaches .......................................................................................... 39
Occupational Training schools ................................................................................. 39
Cooperative Education .............................................................................................. 40
Vestibule training ...................................................................................................... 40
ON JOB TRAINING APPROACHES..................................................................40
Apprenticeship .............................................................................................................. 40
Coaching ....................................................................................................................... 41
Mentoring ...................................................................................................................... 41
Job Rotation .................................................................................................................. 41
In-Basket Training ........................................................................................................ 41
COMPENSATION MANAGEMENT.................................................................42
Components of compensation management: ............................................................ 43
Salary: ....................................................................................................................... 43
Probation period: ....................................................................................................... 43
Promotions: ............................................................................................................... 44
Rent or residence facility: ......................................................................................... 45
Medical care: ............................................................................................................. 45
Transportation: .......................................................................................................... 46
Pension: ..................................................................................................................... 46
Vacation criteria: ....................................................................................................... 46
Transfer: .................................................................................................................... 47
Career management: ................................................................................................. 48
Education of children: ............................................................................................... 48
Insurance: .................................................................................................................. 49
Health and safety program: ....................................................................................... 49
Performance appraisal:.............................................................................................. 50
FLAWS IN PRACTICE ......................................................................................52
Centralization: ............................................................................................................... 52
 No regular appraisal system: ......................................................................................... 52
Hiring of outsource staff: .............................................................................................. 53
CONCLUSIONS ..............................................................................................54
RECOMMENDATIONS ...................................................................................54
REFERENCES ..................................................................................................55
 Summary
Allied Bank was the first Muslim bank to have been established in Pakistan.

Established in December 1942 as the Australasia Bank in Lahore with a paid-up

share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux,

the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen

months of business. At the time, the Banks total assets amounted to Rs. 0.572

million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5

billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion.

1
 Introduction to Report
The purpose of this report is to see practical implementation of HR Practices in

the organization and we have selected Allied Bank for this report.

Introduction to Bank
Allied Bank Limited was the first bank to be established in Pakistan. It started

out in Lahore by the name Australasia Bank before independence in 1942; was

renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited

in 2005.

In August 2004, because of capital reconstruction, the Banks ownership was

transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim

Group.

Today, with its existence of over 60 years, the Bank has built itself a foundation

with a strong equity, assets and deposit base. It offers universal banking services,

while placing major emphasis on retail banking. The Bank also has the largest

network of over 700 online branches in Pakistan and offers various technology-

based products and services to its diverse clientele.

2
 Company profile

Type Public

Founded as "Australasia Bank", 1942 Lahore, Pakistan

Headquarters Lahore, Pakistan

Industry Finance and Insurance

Products Financial Services

Revenue PKR () (2004)

Website www.abl.com.pk

Vision
To become a dynamic and efficient bank providing integrated solutions and the

first choice of bank for all customers.

3
Mission
To provide value-added services to our customers

To provide high-tech innovative solutions to meet customer

requirements

To create sustainable value through growth, efficiency and

diversity for all stakeholders

To provide a challenging work environment, and reward

dedicated team members

To play a proactive role in contributing towards the society

Values
Integrity

Excellence in Service

High Performance

Innovation and Growth

4
 History
The Banks journey has been about dedication, commitment, professionalism and

adapting to environmental changes, leading to its immense growth and stability.

It is these factors that have made it a Bank the rest look up to.

The Pre Independence History (1942 to 1947)

In the early 1940s, the Muslim community was beginning to realize the need for

its active participation in the fields of trade and industry. Since the late 1880s,

Hindus had established a commanding presence in the areas of industry, trade

and commerce and were especially dominating in the Sub-continent area.

Banking, in particular, was the exclusive forte of Hindus and it was popularly

and wrongly believed that Muslims were temperamentally unsuited for this

profession.

Mr. S.R. Jariwalla (sitting in the center) A legendary figure

in the history of the Bank.

It was particularly upsetting for Khawaja Bashir Bux to hear that Muslims could

not be successful bankers. He decided to step-up to that challenge and take the

lead in establishing this first Muslim bank by the name Australasia Bank Limited

in Punjab, which was to become Pakistan in December 1942.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to

Rs. 0.5 million by the end of the first year of operation, and by the end of 30th

5
June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728

million.

The Pre Independence History (1947 to 1974)

Australasia Bank was the only fully operational Muslim bank in Pakistan on

August 14th, 1947.

A view of the building in Lahore that once housed the

Australasia Bank branch.

However, it was severely hit by the riots in East Punjab. The Bank was identified

with the Pakistan Movement. At the time of independence all the branches in

India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra (Agra)) were

closed down. New branches were opened in Karachi, Rawalpindi, Peshawar,

Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to

Multan and Quetta as well. The Bank financed trade in cloth and food grains

thus, played an important role in maintaining consumer supplies during the

early months of 1948 affected by riots. Despite the difficult conditions prevailing

and the substantial set back in the Banks business in India, Australasia Bank

made a profit of Rs. 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the

separation of East Pakistan. But the Bank did well despite losing a lot of its assets

and by the end of 1973 had 186 branches in West Pakistan.

6
In August 2004 as a result of capital reconstruction, the Banks ownership was

transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim

Group.

Today the Bank stands on a solid foundation of over 63 years of its existence

having a strong equity, assets and deposits base offering universal banking

services with higher focus on retail banking. The bank has the largest network of

on-line branches in Pakistan and offers various technology based products and

services to its diversified clientele through its network of more than 700

branches.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and was

renamed Allied Bank. The first year was highly successful; profit exceeded Rs. 10

million, deposits rose by over 50 percent and approached Rs.

1460 million. Investments rose by 72 percent and advances

exceeded Rs. 1080 million for the first time in the banking

history. 116 new branches were opened during 1974 and the Bank started

participating in the Governments spot procurement agriculture program. Those

seventeen years saw a rapid growth for the Bank. Branches increased from 353 in

1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion, and Advances &

Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It also

opened three branches in the U.K.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered a new phase,

and became the worlds first bank to be owned and managed by its employees.In

7
1993 the First Allied Bank Modaraba (FABM) was floated. After privatization,

Allied Bank became one of the premier financial institutions of Pakistan.

A view of Allied Bank, Head Office, Lahore

Allied Banks capital and reserves were Rs. 1.525 billion; its assets amounted to

Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an

enviable position in Pakistans financial sector and was recognized as one of the

best amongst the major banks of the country.

In August 2004, as a result of capital reconstruction, the Banks ownership was

transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim

Group.

Today, the Bank stands on a solid foundation built over 63 years of hard work

and dedication, giving it a strong equity, an asset and deposit base and the

ability to offer customers universal banking services with more focus on retail

banking. The Bank has the largest network of online branches in Pakistan and

offers various technology-based products and services to its diverse clientele

through its network of more than 700 branches.

(2005 to date)
In May 2005, Ibrahim Leasing Limited dissolved and the company was vested

into Allied Bank Limited. ALL the shareholders were issued ABL shares instead

of the all shares held by them. An application for the listing of ABL shares in all

8
the Stock Exchange Companies of Pakistan was made; ABL was formally listed

and the Banks share trading began on the following dates:

Islamabad Stock Exchange

8th August 2005

Lahore Stock Exchange

10th August 2005

Karachi Stock Exchange

17th August 2005

Today, all Allied Bank Limited shareholders can trade in the Banks shares at

their will.

9
 Board of Directors

Mohammad Aftab Manzoor (CEO)

Mohammad Naeem Mukhtar (Chairman)

Pervaiz Iqbal Butt (Director)

Farrakh Qayyum (Director)

Abdul Aziz Khan (Director)

Sheikh Jalees Ahmed (Director)

Mohammad Waseem Mukhtar (Director)

Sheikh Mukhtar Ahmed (Director)

Mubashir A. Akhtar (Director)

10
 Consumer
In line with the Banks aim to provide a host of products and services to its

customers, substantial ground work has been done to establish a strong

consumer banking business. Furthermore, to achieve this objective, professionals

from across the industry have been recruited into areas of product development,

sales, credit policy, research, consumer analytics, call centers and service quality

departments.

The consumer portfolio, comprising the debit card, credit cards, auto loans,

personal loans and mortgages will be established phase by phase. However, we

are confident that our strengths, together with our largest network of online

branches, a superior technology platform, a big customer base and the Consumer

Personal Banking Group (CPBG), will take the Banks profitability to new

heights.

ALLIED VISA CREDIT CARD

Welcome to the world of privileges, benefits

and savings with your Allied Visa Credit Card.

In order to cater to your growing financial

needs we are proud to introduce Allied Visa

Credit Card with The Lowest Service Charge

ever! So now you can save money where it counts and spend lavishly at your

favorite places with greater flexibility, convenience and most important-

Affordability!

11
With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art

features and unmatched value by spending at over 49,000 merchants across

Pakistan and 27 million merchant outlets worldwide! And what more, you can

also use your credit card at over 1 million ATMs internationally!

Allied Visa Gold Credit Card

With your Allied Visa Gold Credit Card every Pakistani can now enjoy the

benefits of a Gold Card internationally with unmatched savings greater

flexibility, convenience and security.

Features

Buy Now, Pay Later

With your Allied Visa Gold Credit Card, your free credit period allows you to

pay for your purchases up to 50 days after the date of purchase. So now you can

buy all the things you want - whenever you want - at your own convenience.

Flexible Repayment

When paying your credit card bill, your Allied Visa Gold Credit Card gives you

the option to either pay the entire amount according to your statement or a

minimum of 5% of your total outstanding balance.

Cash Advance Facility

As an Allied Visa Gold Credit Card member, you are entitled up to 75% of your

available credit limit in cash. Just go to your nearest ATM with the VISA or PLUS

sign and avail the facility of withdrawing cash 24 hours a day

12
Allied Easy Installments (AEI)

The Allied Easy Installments (AEI) plan provides you with the facility to pay

your outstanding card balance in equal and affordable monthly installments

spread over 3, 6, 12, 18, 24, 30 or 36 months. So now you can easily afford

anything from everyday household appliances to exotic vacations abroad.

Supplementary Cards

Want to share the benefits of your Allied Visa Gold Credit Card with others?

Now you can! Treat up to two people with supplementary credit cards and pass

on the many privileges of your Allied Visa Gold Credit Card to your chosen

friends and family members.

Balance Transfer Facility

In case you have outstanding balances on other cards, consolidate these onto

your Allied Visa Gold Credit Card with the lowest BTF rate and save more on

your outstanding payments than ever before.

Credit Protection Plus

With Credit Protection Plus, your Allied Visa Gold Credit Card provides

payment cover against:

Death, due to accident or sickness

Permanent and Total Disability, due to sickness or accident

Temporary Total Disability, due to sickness or accident

Terminal Illness

13
Free CIP Lounge Access as an Allied Visa Gold Credit Cardholder, you are

eligible to avail the free lounge facility at Quaid-e-Azam International Airport,

Karachi and enjoy a variety of complimentary features.

Relax while you watch leading television channels or select something to read

from an updated library of newspapers and periodicals. Also feel free to plug in

your laptop and mobile phone into the charging facilities provided or browse the

internet or send and receive faxes while you wait. You can also treat yourself to a

wide assortment of high quality snacks, beverages and fresh fruits.

Visa Platinum Credit Card

With your Allied Visa Platinum Credit Card you can enjoy exceptional benefits

and a host of local and international benefits like never before!

Features

Visa Platinum Golf

Fancy a game of golf? With your Allied Visa Platinum Credit Card, you can

enjoy golf at its best with complimentary tee-offs, discounted green fees and

access to some of the worlds most celebrated golf clubs.

Platinum Life Platinum

Life is a unique platform that showcases exclusive programs and events specially

designed for Visa Platinum Credit Cardholders. With your Allied Visa Platinum

Credit Card, you are eligible to join this exclusive platform and avail many

exciting services like Platinum Club, Platinum Dining, Platinum Golf,

Experiential Travel and much more.

14
So get ready to enjoy the luxury of Platinum Life with the Allied Visa Platinum

Credit Card.

Visa Platinum Club

As a member of the Visa Platinum Club, you are part of an internationally

reputed rewards program that provides an unmatched quality of services and

customized luxuries to all Allied Visa Platinum Credit Cardholders.

The Visa Platinum Club rewards you with exclusive perks such as

complimentary room upgrades at five-star hotels, spa treatments, attractive retail

discounts, special rates on car rentals, professional golf coaching and much more.

Furthermore, unlike other card reward programs, being part of the Visa

Platinum Club means that you can start enjoying these privileges immediately

without having to earn or accumulate reward points on your credit card.

Visa Platinum Dining

Your Allied Visa Platinum Credit Card can turn any meal into a dining

experience to remember. The Visa Platinum Dining Service offers special dining

privileges at over 200 restaurants throughout the Asia-Pacific region. Through

this program, you can avail special features such as priority reservations,

complimentary meals at selected restaurants, and much more.

Visa Experiential Travel

Your Allied Visa Platinum Credit Card now takes you further than ever before.

With the Visa Experiential Travel Program, choose the package of your choice as

you travel the world and enjoy exotic travel adventures catered especially to

your taste.

15
Concierge Online

This facility provides an alternative to the conventional telephony Concierge

Service. With a simple click of the mouse, you can easily request for trip planning

assistance, hotel reservations, flight reservations, car rentals, restaurant

reservations and performance ticket bookings - all from the comfort of your

home.

To avail this facility, you are first required to register your self on

www.visaplatinum.com and then submit the request by filling an online form

that will automaticly be sent to the VPCC for fulfillment. A Customer Service

Executive will contact you with the relevant details via your preferred mode of

communication (email, phone or fax).

Free CIP Lounge Access

As an Allied Visa Platinum Credit Cardholder, you are eligible to avail the free

lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a

variety of complimentary features.

Relax while you watch leading television channels or select something to read

from an updated library of newspapers and periodicals. Also feel free to plug in

your laptop and mobile phone into the charging facilities provided or browse the

internet or send and receive faxes while you wait. You can also treat yourself to a

wide assortment of high quality snacks, beverages and fresh fruits.

ALLIED VISA DEBIT CARD

Features

16
Get Cash

You are always on the move, now your bank account is too. You can use your

Allied Cash + Shop Visa Debit Card to withdraw cash directly from your bank

account from over 3,500 ATMs in Pakistan - including Allied Bank's largest

network of ATMs - and over 1 million ATMs worldwide

Shop Anywhere

Use the Visa power of your Allied Cash + Shop Visa Debit Card to shop at over

49,000 retailers in Pakistan and over 27 million retailers internationally.

Dine Out

Go to all your favorite restaurants and order whatever you want without having

to worry about how much cash you have in your pocket - thanks to your Allied

Cash + Shop Visa Debit Card.

Enjoy Traveling

Imagine traveling without carrying cash. With your Allied Cash + Shop Visa

Debit Card, you can buy your plane tickets and do all your shopping abroad

without worrying about spending too much or running out of cash.

Have Fun

Whether you feel like taking the family to see a movie at the cinema or treating

some friends to a night of bowling, you can do it all and more with your Allied

Cash + Shop Visa Debit Card.

Activation Instructions

17
Please follow the instructions stated below so that you are able to use your Card

at any merchant outlet or Visa ATMs.

1. Kindly sign the signature panel on the back of your Card in permanent ink as

soon as you receive it.

2. To activate your Card, please call Allied Phone Banking.

3. Enter the PIN provided to you in order to use the Card at ATMs.

Protect Your Card

Do not bend your Card.

Do not leave your Card near a television or any other electrical

or electronic gadget, which has a continuous magnetic field.

Do not expose your Card to direct sunlight. Please notify the

Bank immediately of any irregularities.

Avoid scratching or damaging the magnetic strip. This strip is

sensitively encoded and requires special care.

Do not disclose your Card Account Number or Personal

Identification Number (PIN) to anyone.

Destroy your PIN mailer once you have seen your PIN.

Commercial
The Commercial & Retail Banking Group (CRBG) offers a variety of asset and

liability-based retail products to its customers. The Groups main focus has been

18
on introducing various financing and investment products for its valuable

clientele, and contributing to the steady growth of the financial industry.

CRBG consists of 4 geographic groups and is further divided across 27 regions in

Pakistan. Each region is responsible for providing a quality service to its own

customer-base.

In recent years, the Group has been working to find alternate ways to bank for

customers, and has installed more ATMs to its already strong and largest ATM

network.

During 2007, CRBG also saw a phenomenal growth of 28 percent in liabilities.

The Group launched effective campaigns and showed 13 percent growth in

Current Accounts & Saving Accounts (CASA). Besides an addition of senior level

resources to the team, more Management Trainee Officers were also hired into

the Group to bring in more quality and skill.

CRBG is consistent in lifting the Banks brand image by emphasizing on good

customer services and developing commercial assets and a cost effective deposit

base

Deposits Accounts Online Banking

SME Corporate Banking

Agriculture ATM Networks

Internet Banking Unclaimed Deposits

19
Services
Allied Bank offers the following services to its customers:

Home Remittances Utility Bills

Remittances Lockers

Hajj Services Commodity

Operation

However, the quality of services and network remains pathetic. The Bank has to

do a lot in terms of improving its customer management.

Internet Banking
Online Banking facilities are available to customers maintaining accounts at all

online branches across the country. The following facilities are available:

Cash Deposit for immediate credit to remote branch.

Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Enquiry and Statement of Account.

CORPORATE
The Corporate Investment Banking Group (CIBG) holds the Banks loan portfolio

and enjoys a leading position in corporate lending in the country. It offers a wide
20
range of financial services to medium and large sized public and private sector

entities. These services include, providing and arranging tenured financing,

corporate advisory, underwriting, cash management, trade products, corporate

finance products and customer services on all bank related matters.

The Bank has played a key role in the countrys economic growth by providing a

vast amount of funds to large industrial and corporate sectors of the economy.

And because it has played a big part in major investment and corporate banking

transactions, Allied Bank is considered one of the top investment banks in the

country today.

Corporate Banking
Project Finance Short Term Financing

Long Term Financing Trade Finance

Investment Banking
Project Finance

Syndication

Advisory

Financial Institution
Cash Management

Home Remittances

21
Branches & ATMs
Online Banking facilities are available to customers maintaining accounts at all

online branches across the country. The following facilities are available:

Cash Deposit for immediate credit to a remote branch.

Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Inquiry and Statement of Account

Additionally, account holders of all online branches can obtain the Allied

Cash+Shop Visa Debit Card for use at ATMs as well as at POS terminals. To

locate a branch simply select the city.

Working Environment
Allied Bank boasts of a work culture, which displays respect for all walks of life

and different ways of thinking.

Everyone at Allied Bank has a common corporate vision and values. However,

all employees are encouraged to grow as individuals and collaborate in teams.

Increments, bonuses and promotions are based solely on individual skills,

qualities, abilities and attitude. It is our aim to provide innumerable

opportunities for all those employees who show aptitude and the will to keep

learning.

22
Training programmes, both local and foreign, are also considered important for

employee growth.

Our complex and relatively changing environment teaches flexibility, provides

opportunities to learn and offers many career opportunities. We encourage

people who like challenges, can take their responsibilities seriously and handle a

constantly changing and high-pressure work environment, to come work with

us.

Area of operations
Allied Bank has operating branches in four provinces, throughout the 38 districts

of the country including Azad Jammu and Kashmir.

23
 The Shareholders

Fourteen commercial banks, including three multinational banks are the

bank's shareholders:

Private Sector Bank

Allied Bank Limited MCB Bank Limited

Askari Commercial Bank Mybank Limited

Limited Soneri Bank Limited

Habib Bank Limited SaudiPak Commercial Bank

Habib Metropolitan Bank Limited

Limited United Bank Limited

KASB Bank Limited

Public Sector Bank

National Bank of Pakistan

Multination Bank
ABN Amro Bank

Citibank N.A.

Standard Chartered

24
Organization Hierarchy

25
 Departments

Corporate & Investment Banking Treasury

Commercial Banking Information Technology

Retail Banking Risk Management

Banking Services Islamic Banking

Product & Services

Branches & ATMs Pay Orders

Extended Hours Banking Bankers Cheque

Online Banking

Safe Deposit Lockers

Utility Bill Payments

Allied Phone Banking

Customer Support

Foreign Exchange Service

Hajj services

Demand Drafts

26
 HR Department
HR Department is that department that manages Human resource of the

company.

In managing the human resource, not only H.R. Department involves but

also participate other personnel and management of the company. The HR

department of Allied bank undertook various initiatives to improve and

streamline induction of manpower, career planning, management practices

and general procedures across the organization that enabled it to fully

support the companys operations. Following are some activities of HR

Department:

Staffing

Recruitment

Job Analysis

Testing

Interviews

Compensation/ Motivation

Performance appraisal etc.

27
In Allied bank, there are two sources of hiring the employees.

These are:

Outsourcing i.e. hiring of the contractual staff like, guard,

drivers, office boys etc.

Regular Staff by giving the advertisement in the

newspaper.

Staffing
The selection of training of individuals for the specific job functions, and

charging them with the associated responsibilities

Staffing includes strategic human resource planning to determine what the

human resource needs are to fulfill the organizations mission; job analysis,

to specify the essential knowledge, skills and abilities needed by

employees; recruitment, to attract qualified individuals; and selection, to

choose successful employees from an applicant pool.

Nature of Staffing:
Staffing is an integral part of human resource management. It facilitates

procurement and placement of right people on the right jobs.

Nature of staffing includes:

28
Staffing is an important managerial function:

Staffing function is the most important managerial act along with

planning, organizing, directing and controlling. The operations of these

four functions depend upon the manpower which is available through

staffing function.

Staffing is a pervasive activity:

As staffing function is carried out by all mangers and in all types of

concerns where business activities are carried out.

Staffing is a continuous activity:

This is because staffing function continues throughout the life of an

organization due to the transfers and promotions that take place.

The basis of staffing function is efficient management of

personnels:

Human resources can be efficiently managed by a system or proper

procedure, that is, recruitment, selection, placement, training and

development, providing remuneration, etc.

Staffing helps in placing right men at the right job:

It can be done effectively through proper recruitment procedures and then

finally selecting the most suitable candidate as per the job requirements.

29
Staffing is performed by all managers:

Staffing is performed by all mangers depending upon the nature of

business, size of the company, qualifications and skills of managers, etc. In

small companies, the top management generally performs this function. In

medium and small scale enterprise, it is performed especially by the

personnel department of that concern.

Importance of staffing:
It is of utmost importance for the organization that right kinds of people

are employed. They should be given adequate training so that wastage is

minimum. They must also be induced to show higher productivity and

quality by offering them incentives.

In fact, effective performance of the staff function is necessary to realize the

following benefits:

Efficient Performance of Other Functions

Effective Use of Technology and Other Resources

Optimum Utilization of Human Resources

Development of Human Capital

Motivation of Human Resources

Building Higher Morale

30
 Recruitment and Selection Process
Recruitment process:

Recruiting is a more complex activity than most managers think it is.

Recruitment efforts should make sense in terms of the companys strategic

plans. Some recruiting methods are superior to others, depending on who

you are recruiting for and what your resources are. The success you have

with your recruiting actually depends on non-recruitment HR issues and

policies.

There are several internal and external sources of recruiting the right

candidate for the organization, like:

Finding internal candidates.

Rehiring. Internal Sources.

Succession planning etc.

Advertisement

Employment agencies
External Sources.

Executive recruiters.

Referrals etc.

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In Allied bank: In Allied bank the major source of recruiting employees
is advertisement in the newspapers. Both types of sources of

employment are being practiced in this bank.

Selection process

After building a pool of candidates, the next step is to screen out the best

candidates according to your requirement by using various testing tools

and techniques. Careful selection of employees is an important issue

because of three main reasons; which are given below:

Employees with the right skills and attributes will perform

more effectively.

The cost of making a wrong hire can become exorbitant

considering the time and money invested in the selection

and training process.

The legal implications of incompetent or negligent hiring.

Here are some testing tools & techniques that are used in the selection

process:

Test of cognitive abilities

Test of motor and physical abilities.

Measuring personality and interests.

Achievement tests etc.

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Testing in Allied bank:

In Allied bank, IBA test is conducted of all those employees who

have appeared in recruitment process to screen out the

best candidates. IBA written test consist of English, Math,

General/Computer Knowledge and Intelligence part

based on multiple choice questions pattern, with

negative marking in case of wrong answer. After testing

of the candidates, the next step is interviewing of those candidates that

have passed the IBA written test.

Interviewing Candidates:

After testing the candidates, the next step involves conducting interviews

of the best candidates. An interview is the procedure designed to obtain

information from a person through oral to oral inquiries. Managers use

several types of interviews in the work settings. There are basically three

main types of interviews; selection interview, appraisal interview and exit

interview.

Managers use various techniques for conducting the selection interview;

such as:

Structured or unstructured interviews

Stress interview

Panel interview

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 Computerized interview

Mass interview etc.

Interviewing in Allied bank:

In Allied bank, panel interview is conducted to screen out the best

candidates for the job. Here; from the pool of the candidates, who have

appeared and cleared IBA written, interview by the panel of specialist is

conducted. All those candidates; who have cleared this interview are then

posted to the vacancies they have applied for or that meet the skills and

abilities of the selected candidates.

After selecting the candidates by using various testing and interviewing

techniques; the next step is to train those candidates who are selected in

this process.

Job Analysis

Job analysis is the procedure for determining the duties and skill

requirements of a job and the kind of person who should be hired for the

job by collecting the following types of information: work activities;

human behaviors; machines, tools, equipment, and work aids;

performance standards; job context; and human requirements. Simply we

may say

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Job analysis consists of:

Job Description

Job Specification

Job description is a list of a jobs duties, responsibilities, reporting

relationships, working conditions, and supervisory responsibilities. While,

Job specification is a list of a jobs human requirements: the requisite

education, skills, personality, and so on another product of a job analysis.

Uses of Job Analysis:

Following are some uses of the Job analysis:

Recruitment and Training

selection
Discovering unassigned

Compensation duties.

Performance appraisal

Job Specification in outsourcing

Here, you can have the glance of the job specification that is used by Allied

bank in outsourcing:

Job Title: Data entry operator

Qualification: intermediate with at least second division.

Age: 20 25 years

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Work experience: not required but preferably 1 year.

Abilities: reasonable, intelligent with good communication skills.

Personality: smart, physically fit and medically fit for the job.

Other requirements:

A hand written job application along with a passport size photograph,

copy of National identity Card, Qualification certificates, character

certificate, driving license in some cases and references if any.

Job Description in outsourcing

Here, you can have the glance of the job description that is used by Allied bank

in outsourcing: Performs work of moderate difficulty in the supervision and

participation of data entry and record maintenance utilizing data entry terminal;

performs other work as assign or required.

Example of Duties:

Enters alphabetic, numeric, or symbolic data

Maintains manual support files.

Receives and processes requests.

Verifies eligibility or specific master file records for purging.

Plans, organizes and directs the work of data entry personnel.

Operates various types of office equipment.

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Job Specification in regular Staffing
Here, you can have the glance of the job specification that is used by Allied

bank while recruiting the regular staff:

Minimum Qualification: Masters degree within required discipline

Work experience: not required but preferably 1 year.

Personality: smart, physically fit and medically fit for the job.

Abilities: Good command on English language with Computer knowledge.

Entry Test: IBA Karachi.

Interview: HR department, Islamabad.

Other requirements:

A job application along with a C.V.

Job Description in outsourcing

Here, you can have the glance of the job description that is used by Allied

bank while recruiting the regular staff: here are some exemplary

responsibilities:

implementing the delivery of sales strategies and targets and

motivating employees to meet these;

Establishing and maintaining effective relationships with new

and existing customers.

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 communicating, implementing and monitoring compliance with

corporate standards and procedures;

processing data to produce accurate facts, figures and reports;

checking accounts and initiating action if they are overdrawn

without arrangement or are in excess of agreed arrangements;

Networking with appropriate professionals.

Representing the bank within the wider community.

Training, Retraining And

Development approach

Training
Training is a job-oriented activity. It provides or improves specific skills

for the current job. A manager may be trained in communication skill to

improve reading, writing, listening and speaking. A technician may be

placed in a factory to acquire job-relevant skills in a computerized

machine. It makes a person fit for the present work through updating or

upgrading of skills. While in Allied bank training period is for 6months.

Retraining
For the improvement of employees due to advancement of technology.

Retraining is only possible when workforce possesses a sound general

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education and has already been trained of broad line skill. But in Allied

bank they conduct seminars for this purpose.

Development:
Development is a concept-oriented preparation for human relation,

problem solving in structured or unstructured situation. It provides

conceptual skill to employees.

There are two types of training approaches.

Off-job training approaches

On-job training approaches

Off-job training approaches

There are further types of off-job training approaches.

Occupational Training schools

There may be an individual who is aware of his insufficient skills, at hand,

as compared with those required by the work place. Such a person may be

provided desirable job-oriented skill training by a school. The training

school may be in public or private sector. The individual would opt for

training programs in the respective skills.

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Cooperative Education
A cooperative education programs are a feasible vehicle of creating and

sustaining liaison between the institution and the entrepreneur. College

provides conceptual framework while the enterprise engages the strident

with work experiences.

Vestibule training
An employee may not be placed on actual workbench because of the

pressure of work, efficiency of the already trained manpower and quality

controls. A separate simulated workplace is identified to house the

learners. It may be an in-service training school established by the

organization.

On job training approaches

Apprenticeship
A group of potential employees is inducted to hob-specific training under

the guidance of matured and skilled personnel. If it is provided first time

to a trainee, it is initial training that includes induction training as well. If

trainee has already initial training, then it is only the induction training

provided through apprenticeship. The apprentice is paid subsistence

money to manage boarding, lodging and daily needs.

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Coaching
A coaching is an instructor of skills. Coaching teaches skills on the basis of

one-to-one personal contact between the trainee and the trainer. It is an

equally useful training method for managers and non-managers in

business, industry, education and government. Allied bank includes

training after 6 month probation for final evaluation of candidate,

candidate goes to Islamabad (national institute of business and finance) for

one week training then he is employed.

Mentoring
A mentor means an experienced and trusted adviser. Mentoring is an

advanced form of coaching designed for potential managers, of various

levels, in conceptual skills. In Allied bank for this purpose seminars are

conducted.

Job Rotation
An employee is shifted from one position to another, at lateral level from

one job to a similar of differentiated and diversified work, preferably, in

ones own discipline. The similarity of elements in the previous and new

jobs helps the trainee in acquiring the new skills. In Allied bank this

situation is already existing.

In-Basket Training

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The trainee is attached with a senior person. The trainer provides the

trainee a basket containing official documents, i.e. memos, letters, reports,

etc. The trainee studies these documents and learns about that level of

management.

Compensation Management
To attract and retain the best talent, companies require compensation and

benefits structures that are both enticing and consistent with market

standards.

It is an integral part of the management of the organization. Compensation

Management contributes to the overall success of the organization in

several ways. Employee compensation is also a way to contribute in

success of the organization, it refers to all forms of pay or rewards going to

employees and arising from their employment. It has two main

components:

Direct financial payments;

Wages, salaries, incentives, commissions, and bonuses etc

Indirect payments;

Pay in the form of financial benefits such as insurance.

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Components of compensation management:

Salary Transfer

Probation period Career management

Promotion criteria Education of children

Rent or residence facility Insurance

Medical care Health and safety program

Transportation Performance appraisal

Pension Flaws in practice

Vacation criteria

Salary:
A salary is a form of periodic payment from an employer to an employee,

which is specified in an employment contract. It is contrasted with piece

wages, where each job, hour or other unit is paid separately, rather than on

a periodic basis.

In Allied bank:

Salary structure in KB is competitive as compare to other banks. BPS starts

from 12000 for a new trainee or employee.

Probation period:
It is a time to check the performance of an employee who is provisionally

employed to fill a vacant newly created post. The services of a probationer

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may be terminated at any time by the competent authority with out notice

or pay or he/ she may resign with out giving any notice or pay in lieu there

of.

In Allied bank

In Allied bank there is 6 months probation period used to check the

performance of new employees whether it is upto the mark or not. If

performance is not satisfactory then new employee will be dismissing from

job and performance is above par then employee can gain permanent job

with the bank.

Promotions:
Promotions traditionally refer to advancements to positions of increased

responsibility. Most working people look forward to promotions, which

usually mean more pay, responsibility and often job satisfaction. For

employers, promotions can provide opportunities to reward exceptional

performance, and to fill open positions with tested and loyal employees.

Allied bank:

Following is the main criteria for promotion of an employee in KB:

Education Experience

Job knowledge Performance

If an employee is fulfilling all above requirements then he will be

promoted after 6 months.

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Rent or residence facility:
Traditionally residential facilities are obtained by employees from their

employers or organizations in which they work. If no residential facility is

provided then employers paid the rent of such accommodation in which

employees are living.

Usually well reputed or public organizations give this facility to their

employees.

In Allied bank:

No rent or residential facility provided by KB to their valuable employees.

Medical care:
Sometime medical allowances are given to employees by their employers

while on the other hand if allowances are not given then charges incurred

on hospitalization are paid by organizations. So, in this way medical care

facility is provided to personals.

In Allied bank:

Employees of KB are enjoying medical care facility. Any employee of the

Allied bank can claim to pay hospitalization charges of his family

members. The claim is approved by R&D department, for approval

purpose certain type of documentation is necessary which should be fulfill

by employees. After this employees can enjoy this facility.

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Transportation:
Transportation means conveyance facility to workers of any organization.

Some well reputed organizations give allowance to meet their

transportation charges or in other way companies provide its own

transportation to workers in order to enhance their efficiency and

motivational level.

In Allied bank:

There is no transportation facility provided to male employees only for

females transportation is provided on local basis.

Pension:
It is a plan that provides a fix sum when employees reach a predetermined

retirement age or when they can no longer work due to disability. In recent

time only government sector give pensions to their workers and not

private sector.

In Allied bank:

In KB there is no pension plan for employees but gratuity is given to

workers.

Vacation criteria:
Every organization whether public or private has its own vacation plan

which is abided by employees. There are many types of leaves given to

workers like casual leaves, mandatory leaves, sick leaves, annual leaves

etc.

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In Allied bank:

KB has its own vacation criteria including:

1. Entitlement of 30 leaves in 1 year per employee

2. Out of thirty 2 weeks are mandatory leaves

3. Remaining leaves can be enjoyed by employee at their will

Above mentioned is revising policy but before this there were:

12 casual leaves 3 seasonal leaves etc

1 sick leave

Transfer:
Reassignments to similar positions in other parts of the firm are called

transfers. Usually a transfer is a move from one job to another with no

change in salary or grade .Every organization has its own policies or

criteria for transfer of employees.

In Allied bank:

Transfers depend upon following issues with reference to employer:

1. Business accidences like overstaffing or understaffing

2. Experience

3. No efficient performance of employee

4. No particular tenure system

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Employees seek transfer for:

Personal enrichment Better working hours

More interesting job

Career management:
Career means the occupational position a person has had over many years

while career management is a process for enabling employees to better

understand and develop their career skills and interests and to use these

skills and interests more effectively.

In Allied bank:

The series of activities that contribute to career of employees of KB include:

Workshops On the job training

Seminars

Training by National Institute of Business and Finance

Education of children:
Some big organizations give education facility for the children of

employees. In order to achieve this task they can give allowances or cash

or direct payment of fees. Some time workers welfare schools are

established for the convenience of employees.

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In Allied bank:

In Allied bank there is no any facility is given to employees in terms of

education of children.

Insurance:
Almost all companies are providing insurance facility to their personals.

Companies usually give this facility to their permanent workers or

employees. Probationers are not come under this head.

In Allied bank:

All employees of Allied bank are insured except from probationers or

temporary employees. They insured by ALLICO insurance company

upto 6 million or six lakh.

If an employee will expired during duty hours then his family will receive

full amount as said six million.

If an employee will expire after duty hours then his successors will receive

half or fifty percent of the full amount.

Health and safety program:

Health and safety programs include medical care and establishment of safe

environment for employees. In order to regulate these programs firms

maintain their own policies to ensure employees that they are safe and

company consider them as a valuable asset for their organization.

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In Allied bank:

The bank is providing proper health awareness by recommending

different tests for employees from time to time without any cost and in

order to regulate safety measures KB has insured its all assets including

human resource staff, vehicles, furniture, equipments, cash etc.

Performance appraisal:
Virtually all companies have some formal or informal means of appraising

their employees performance. Performance appraisal means evaluating an

employees current and/or past performance relative to his or her

performance standards set by organization for that particular job.

Performance appraisals are a regular review of employee performance

within organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational

rewards.

Form a basis for personnel decisions-salary (merit)

increases, promotions, disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and

development.

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 Facilitate communication between employee and

administrator.

Validate selection techniques and human resource

policies to meet federal Equal Employment Opportunity

requirements.

In Allied bank:

Employee level:

In KB following parameters are used to evaluate performance of an

individual employee as well as performance of management level:

Job knowledge Initiative to work

Communication Team work

Interpersonal relationship Productivity

Adoptability of new things Time management

Motivation Work habits

Customer focus accomplishment of task

Management level:

Leadership Problem solving and

decision making
Planning and organizing

Development of

subordinates
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 Consensus building to take Creativity

new task

Flaws in practice
In every organization there may be possibility of flaws in regulation of

policies or poor policies regarding human resources similarly there are

also some flaws n KB bank regarding HR policies.

In Allied bank:

In Allied bank following are draw backs:

Centralization:
The most important draw back of HR policies OF KB is centralization,

which means that all employees are selected by centralized corporate office

Islamabad so there should be decentralization because branch wise

selection can reduce many problems.

No regular appraisal system:

There should be proper and regular appraisal system in order to enhance

employees efficiency and capabilities and productivity. In KB there is two

time appraisal in one year so there is need to make regular appraisal

system.

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Hiring of outsource staff:
Hiring of most outsource staff can create problem for such employees

because they feel insecurity, due to deprivation of incentives their level of

motivation goes down which finally leads to high turnover and job rotatio

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 Conclusions
In despite of all things and discussions, Allied bank has a strong H.R

Department. Allied bank H.R Department has strong management and

enough resources (e.g. well trained staff and financial). The environment

of Allied bank is formal and friendlier. They proved to be not only the

bank but more than a bank. It has been a really good experience.

Recommendations
H.R Department personnel should corporate to externals,

as it is also a source for goodwill.

Need to make enough training durations.

Selection procedure duration should be short.

Need to close the gap between employees and

management.

Need to decentralize the decision making.

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 References
Human resource management.

Job advertisements of Allied bank

Allied banks annual reports

www.google.com.pk

official web site of Allied bank

www.abl.com.pk

Others.

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