HRM REPORT BANK ALFALAH

BRIEF HISTORY OF BANK ALFALAH LIMITED Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance 1962. The Bank is currently operating through 45 branches in 21 cities, with the registered office at B.A.Building, I.I. Chundrigar, Karachi. Since, its inception as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates their commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. The bank perceived the requirements of customers and matches them with quality products and service solutions. During the past five years, bank has emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow as well as today. To continually upgrade the quality of service to the customers, training of

team members in all the integral aspects of banking, customer service and IT was specially focused. The portfolio concentrates on all aspects of conventional banking as well as the financial needs of corporate sector. Dynamic and high value product includes Car Financing, Home Financing, Rupee Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division is a recent initiative, which operates as separate branch. It offers Shariah Compliant products through a network of five branches, which will increase to 50 by the year 2007. The bank is committed to combine all it s energies and resources to bring high value, security and satisfaction to its customers, employees and shareholder. The Bank has invested in revolutionary technology to have an extensive range of products and services. This facilitates commitment to a culture of innovation and seeks out synergies with client and service providers to ensure uninterrupted services to it customers. VISION To be the premier organizations operating locally and internationally that provided the complete range of financial services to all segments under one roof MISSION To develop and deliver the most innovative products, manage customers experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank

MANAGEMENT
Chief Executive Officer Executive In charge Strategic Planning & Global Marketing Executive In charge Human Resources Division Executive In charge Credit Division Executive Incharge Establishment & Administratration Executive Incharge Business Development Division S.A.M./ Car Finance/ Leasing Executive Incharge Audit & Inspection Division Executive Incharge Corporate Banking, SME Financing & Home Loans Executive Incharge New Products & Service Quality Division Executive Incharge International &Treasury Division Executive Incharge IT Division Executive Incharge System & Operation Division. Executive Incharge Credit Monitoring Division Executive Incharge Legal Affairs Division. Executive Incharge Finance Division Executive Incharge Islamic Banking Division Executive Incharge Cards Division

ORGANIZATIONAL STRUCTURE

DEPARTMENTS Bank Alfalah Limited has the following departments: v Account Opening Department v Human Resource Department v Trade Finance v Credits

v Accounts Department v Administration / Personnel v Special Asset Management (SAM) v MIS Department v Marketing v Cash & Deposits v Foreign Currency Accounts HUMAN RESOURCE MANAGEMENT The policies and practices involved in carrying out the People or Human Resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising The concepts and techniques need to carry out the people or personal aspects of management job are:

Conducting job analyses (determining the nature of each employees job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers

Building employee commitment

HRs Definition at Bank Alfalah: We Are Struggling For People. HRM DEPARTMENT & BANK ALFALAH Like other organizations HRM department acts as the mind of the organization. Without the HRM department Bank Alfalah cannot imagine being able to function. At Bank Alfalah, HRM has great significance, everybody depends on this department for the entire organization to work and succeed in its mission.

Human Resource Department-Hierarchy

RESPONSBILITIES OF HR OFFICER: Following are the responsibilities of HR Officer in Bank Alfalah:

Recruitment And Selection Policy Making Retention Program

Improve Working Relation Of Employees

HRM Management Responding To Changing Environment: Bank Alfalahs environment by

HRM

Management

is

responding

to

changing

Follow Customers Needs Adopt Continuous Changes Decentralized Organization

COMPETITIVE ADVANTAGES: Bank Alfalah has following competitive advantages over its competitors:

Strong Pay Structure Retention Program All Banking System Based On It Select People From Top Universities Account EI Has 30 Years Work Experience

JOB ANALYSIS The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it Job Analysis includes:

Job Description

Job Specification

Job Description: A list of jobs duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities Job Specification: A list of jobs human requirements, that is, the requisite education, skills, personality, and so on METHODS OF COLLECTING JOB ANALYSIS INFORMATION There are two methods of collecting Job Analysis Information:

Interviews Observation

INTERVIEWS A procedure designed to obtain information from a person through oral responses to oral inquiries Who Conducts Interview? Interviews are taken by the branch HR head responsible for recruitment and selection Types Of Interviews Taken: Structured interview only Structured Sequential Interviews

 Panel Interview Criteria for Selecting Candidates: Following is the criteria for selecting candidates in Bank Alfalah based on:

Communication Skills Present Personality Educational Background (etc.) Skills And Competency

INTERVIEW QUESTIONS

Why Should I Hire You? Why Do You Want To Work For Us? Whats Your Great Strength? Whats Your Great Weakness? How Much Salary Do You Expected From Us?

RECRUITMENT The development of a pool of applicants for jobs in the organization Sources Of Job Recruitments: Following are the some sources of Job Recruitment in Bank Alfalah:

By Universities By Website By Coaching

By Newspapers

Recruitment Process: Following are the recruitment processes in Bank Alfalah: 1.) Assess need (strategic planning and tactical planning) 2.) Create a pool of candidates: 3.) Screen out candidates: 4.) Make selection 5.) Evaluate recruitment process: 1.) Assess need (strategic planning and tactical planning) There is no fixed quota of number of employees to be recruited, it depends on need and the strategic (organizational) and tactical (branch level) requirements. 2.) Create a pool of candidates: The prospect candidates are attracted through advertisement in the newspapers, on the website online and also the walk in. 3.) Screen out candidates: Through interviews and tests they screen out the less attractive candidates. 4.) Make selection:

After further interviews and other processes the final candidate is selected. Questions in an interview are made by doing proper job analysis of the job. That includes identifying the job duties and requirements. 5.) Evaluate recruitment process: Evaluate effectiveness of recruitment by comparing the results to expected results. TYPES OF RECRUITMENT There are two types of recruitment in Bank Alfalah: 1. Internal 2. External 1. Internal: Includes recruiting of already existing employees for new jobs within the organization 2. External: Includes bringing new blood in an organization. Recruiting people who are new INTERNAL RECRUITMENT IN BANK ALFALAH Bank Alfalah normally Less emphasis on Internal Recruitment Existing employees can respond to new job offers as externals

 Performance appraisals EXTERNAL RECRUITMENT IN BANK ALFALAH In Bank Alfalah external recruitment is on Need basis No yearly or monthly recruitments Every branch has its own HR department Head office sanctions recruitment for new employees Adds in leading newspapers (Dawn, Jang) College Recruitment (under planning) Online application forms Short listing Interviews Decisions made through head office No help from recruiting agencies
DIRECT INDUCTION OF FRESH CANDIDATES

Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate candidates for its organization and the process is as follows:

EXPERIENCED PROFESSIONALS

Based on requirements of experienced staff, Bank Alfalah also recruits talent from the marketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals at all levels who wish to join hands with Bank Alfalah. The procedure for selecting such professionals is as follows:

Executive Recruitments: In Bank Alfalah, Executive recruitments are done by CEO. Recruitment of MTOs (Management Training Officers): In Bank Alfalah, recruitment of MTOs is done on Yearly Basis Recruitment of Internees: In Bank Alfalah, recruitment of Internees is on > Walk-ins > Letter of recommendation from college Human Resource Assessment Bank Alfalah Ltd. has worked hard to build its human resource team and ensure that the quality of newly inducted staff is not comprised with growth. For recruitment and selection banks policy is to hire suitable

candidates. By suitable candidates bank refers to candidates having proper educational qualification, experience and background. Bank Alfalah not only is one of the fastest growing bank in Pakistan, that provides its customers with a number of financial services, but is also a great employer of human resources, that provides its employees with a conducive environment that not only is challenging but also helps them in applying and gaining knowledge. The above figures show that all prospect employees feel confidence in Bank Alfalah as their prospective employer. Bank Alfalah, as a response to this confidence has three ways of employing prospect employees for their organization.

OREINTATION The orientation program of Bank Alfalah contains:

Introductory Lecture

Printed Employee Hand book in Bank Alfalah Time Duration Familiarize new employees with their new jobs, work units and organization in general.

BATCH TRAINEES

All employees selected through this process, have to first complete a probation period before given a complete status of a Bank Alfalah employee. The major benefit of this procedure is that Bank Alfalah can employee a large number of employees at a lower cost. The procedure for accepting a batch trainee is as follows: TRAINING The process of teaching new employee the basic skills they need to perform their jobs. Basic Steps in Training: Following are the basic steps in training employees in Bank Alfalah: Need Analysis Instructional Design Validation Implementation Evaluation and follow up

- Training Mangers and faculty is hired for training purposes. - Training Mangers are in their respective head offices The Training Centers Of Bank Alfalah: Bank Alfalahs training centers are in Karachi & Lahore. These training centers are responsible for providing multi-level high quality training programs in following areas: - Consumer banking operations - Credit administration/documentation - Trade Marketing Customer finance & selling service operations skills skills skills

Performance appraisal - Time management & personal effectiveness TWO SCENARIOS OF TRAINING Training Calendar:

In Bank Alfalah, Head office devises a calendar according to which they train their employees Need Basis: In Bank Alfalah, Branch Manger realizes that specific department lacks in some skill. TWO TYPES OF TRAINING

On The Job Training: Training a person to learn a job while working on it Off The Job Training: Training an employee to learn a job while providing him a class room environment ON THE JOB TRAINING On The Job Training in Bank Alfalah is done by

Making teams of new employees with a few old specialized Employees. Contribution to overall productivity. Lower cost Lower Time

Management Training Officers (MTO) Training Program: In Bank Alfalah, MTOs training program is 3 months On the Job Training & 9 months Off the Job Training. OFF THE JOB TRAINING In Bank Alfalah, Off the Job Training is done by

In-house training ,done at least once a year Employees from all over Pakistan attend seminars and courses.

Employees are tested after the completion of the course Specialist trainers are hired Provide a proper learning environment to the employees Professional faculty is hired Increases employee loyalty Labor productivity is zero Cost is high Time is consumed

Training & Development: In Bank Alfalah, employee is trained & developed in following different operations:

Consumer Banking Operations Credit Marketing & Credit Proposals Credit Administration/Documentation Trade Finance Operations Marketing & Selling Skills Customer Services Skills Performance Appraisal Skills (Self Appraisal) Time Management & Personal Effectiveness

PERFORMANCE APPRAISAL SYSTEM Evaluating an employees current and / or past performance relative to his or her performance standards The performances of employees are appraised yearly at Alfalah Bank. HR head said that Performance appraisal helps us in estimating employees current performance, setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies. APPRAISAL METHOD AT ALFALAH The Appraisal Methods at Bank Alfalah are 1. Self Appraisal Method Ratting Evaluation 1. Problems During Appraisal Unfair Assessment (Bias) BEHAVIOR APPRAISAL In this service oriented industry behavior is as important as performance on job. To manage behaviors and appraise company has devised a managing behavior system to evaluate their core values. Each employee in such a system is rated against the behavior performance achieved,

against the required benchmark applicable, depending on the Job Grade. PERFORMANCE STANDARDS AT ALFALAH Alfalah Bank Has laid down the following Performance Standards: 1-Demonstrates Commitment 2-Aligns Activities 3-Promotes Alfalah Long Term Objectives MANAGING CAREER & FAIR TREATEMENT In Bank Alfalah, Managing Career & Fair Treatment is based on: Promotion Decision How To Handle Transfer Communication At Alfalah Manage Dismissals PAY PLANS & INCENTIVES AT ALFALAH Pay Plans: Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from top to bottom, on the bases of compensable factor. Employee with higher rank gets highest pay and incentives. Compensation Plans for Employees:

In Bank Alfalah, compensation plan for employees includes:

Basic Salary Bonuses Medical Facilities Allowances

Incentive Plans: In Bank Alfalah, incentive are provided to

Managers and Executives Middle and Lower Level Employees

EMPLOYEE BENEFIT & SERVICES The employee benefits & services provided by Bank Alfalah are

Health & Life Insurance Paid Annual Vacations, Leaves, Holidays Health Insurance Of Parents Pension & Provident Fund Discount On Company Products Annual Bonuses Educational Plans Social Events Customized Services Creative, Learning & Healthy Environment

Highly Qualified, Experienced & Committed Staff Profit & Gain Sharing Plans

Financial Benefits: The financial benefits provided by Bank Alfalah to its employees are Severance Pay Severance Pay is given according to 1. Policy 2. Give Full & Final Settlement 3. Half Salary As A Complementary (Optional) Supplemental Unemployment Benefits Supplemental Unemployment Benefits are given 1. During Annual Routine Audits 2. Other Privileges Insurance Benefits: Bank Alfalah gives insurance benefits on

Workers Compensation Complete Life Insurance Hospitalization & Medical Insurance

Other Benefits: Other benefits provided by Bank Alfalah to its employees are

Pregnancy Compensation 2 Bonuses For Each Employee Faster Promotion Introduction Of MENTORS Bank Alfalah MOHTISIB Staff Suggestion Scheme Family Community Concept Salary Of Own Choice Job Rotation Facility Prizes & Gifts Refreshment Packages Short Courses & Trainings + Training Material Traveling & Stay Allowances Communication Benefits

Retirement Benefits: Bank Alfalah gives retirement benefits on the basis of

Age Pension Plans Provident Fund Facility Early Retirement Window No-golden Offerings & Defined Contrib. Plan No-social Security & Deferred Profit Sharing

Services Benefits: Following services benefits are provide by Bank Alfalah to the employees:

Introduction Of MENTORS (HR REPRESENTATIVE) Counseling Services -

Financial, Career, Job-placement, Grievances

Bank Alfalah Mohtisib Lunch & Learn Program Employee Transportation Educational & Training Subsidies Flexible Benefits Programs (Few-limitations) No-subsidized Child & Elder Care

EMPLOYEE SAFETY & HEALTH CONTRIBUTION Bank Alfalah is

Strict About Occupational Safety Laws Obeying The OSHA Standards Major Responsibility Br. Manager Routine Safety Audits Inspection & Citations By Head Branch Managing Proper Responsibilities & Rights Of Both Employer & Employee

Avoiding the Causes Of Accidents: Bank Alfalahs management plays an important role in avoiding the three causes of accidents

Unsafe conditions Unsafe acts

Accident prone people

HEALTH PROBLEMS & REMIEDIES Following are the steps that taken by Bank Alfalahs HR Department to solve the health problems in the organization and make possible remedial changes

Smoke Free Environment Role Of Mentors ; Regarding Job-stress , Burn-out , Health Conditions Remedies For VDTS & Other Tools Vaccinations & Health Treatments

Other Precautionary Measures: Other precautionary measures taken by Bank Alfalah for the safety of employees are 1. Personalized Attention To Employees 2. Angry Employees Management 3. Temporary Stop The Working 4. Counseling 5. Real Root Problem 6. Use Of Personal Skills 7. Professional Attitude Adopted 8. Future Avoidance SWOT ANALYSIS BAL is one of the fastest growing banks in Pakistan. In the light of these situations we can make an analysis.

Strengths: Bank is in its growing stages so there is good financial position. Professional and Committed workforce Low cost than other major banks Increasing the number of branches in the country Successfully launching new Product Lines Well experienced and quality staff Efficient internal communication system Weaknesses: Although the bank is growing fastly but it has some weaknesses which it should remove to make itself further strong. Less Advertisement Slow in introducing new products The staff is not satisfied with the salary structure Gives its staff less benefits Opportunities: Extension of International network of the branches Introduction of innovative products

 Growing market ATM facility for all customers Threats: Uncertain economic conditions Action taken by competitors CONCLUSION HRM managers at Bank Alfalah are performing a great job as far it is concerned Motivating them and looking after them. Along with the other managers and employees HRM managers are also doing a great job in achieving company goals and objectives. There is a very calm and friendly atmosphere at Bank Alfalah because of the HRM department and their policies for keeping their employees happy, productive and efficient. RECOMMENDATIONS It is observed that the employees were overburdened so they have to stay at branch till late at night. In this way their efficiency is affected and hiring more employees can reduce their work. The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs.

 Bank Alfalah Limited should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted. The banks management should give more incentives and pay scale of officers should be revised & improved. System and operations should be more defined and organized. IT draw backs should be improved. Administration drawbacks should be improved by the strict control of general issues. Some employees waive the bank charges (Statement charges, cheque book charges etc) that decrease the income of the bank. Lockers, ATM, all these facilities should be provided to attract more customers. Expenditures must be control, which are very high. References Personal Refernces Mr. Zulfiqar, Accounts Officer. (Bank Alfalah Ltd., Wah Cantt Branch) Mr. Waqas, Customer Services Officer. (Bank Alfalah Ltd., Wah Cantt Branch)

Web Resources

Bank Alfalah (www.bankalfalah.com) Wikipedia (www.wikipedia.com) State Bank of Pakistan (www.sbp.org.pk) Google (www.Google.com)

Reports & Papers

Annual Report Bank Alfalah 2008 Issues in Pakistans Economy by S. Akbar Zaidi International Finance by Maurice D. Levi Bank Alfalah Limited. (2009). Alfalah Mahana Amdan Plus [Brochure]. Bank Alfalah Limited. (2009). Alfalah Quick Finance [Brochure]. Bank Alfalah Limited. (2009). Alfalah Milkiat Finance [Brochure]. Bank Alfalah Limited. (2009). Alfalah Karobar Finance [Brochure].

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