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BRIEF HISTORY
Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under theCompanies Ordinance 1984. Its banking operations commenced from November 1st ,1997. Thebank 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, themanagement of the bank has implemented strategies and policies to carve a distinct position forthe bank in the market place. Strengthened with the banking of the Abu Dhabi Group and drivenby the strategic goals set out by its board of management, the Bank has invested in revolutionarytechnology to have an extensive range of products and services. This facilitates theircommitment to a culture of innovation and seeks out synergies with clients and service providersto ensure uninterrupted services to its customers.
The bank perceived the requirements of customers and matches them with quality products andservice solutions. During the past five years, bank has emerged as one of the foremost financialinstitution in the region endeavoring to meet the needs of tomorrow as well as today. Tocontinually upgrade the quality of service to the customers, training of team members in all theintegral aspects of banking, customer service and IT was specially focused.
The portfolio concentrates on all aspects of conventional banking as well as the financial needsof corporate sector. Dynamic and high value product includes Car Financing, Home Financing,Rupee Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumerDurables. In addition to this, Islamic Banking Division is a recent initiative, which operates asseparate branch. It offers Shariah
Compliant products through a network of five branches, which will increase to 50 by the year2007. 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 inrevolutionary technology to have an extensive range of products and services. This facilitatescommitment to a culture of innovation and seeks out synergies with client and service providersto ensure uninterrupted services to it customers.
VISION
To be the premier organizations operating locally and internationally that provided thecomplete range
of financial services to all segments under one roof
MISSION
To develop and deliver the most innovative products, manage customers experience, deliverquality service that contributes to brand strength, establishes a competitive advantage and
enhances profitability, thus providing value to the stakeholders of the bank
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MANAGEMENT
Chief Executive Officer
Executive InchargeStrategic Planning & Global Marketing
Executive InchargeInternational &Treasury Division
Executive InchargeHuman Resources Division
Executive InchargeIT Division
Executive InchargeCredit Division
Executive InchargeSystem & Operation Division.
Executive InchargeEstablishment & Administratration
Executive InchargeCredit Monitoring Division
Executive InchargeBusiness Development DivisionS.A.M./ Car Finance/ Leasing
Executive InchargeLegal Affairs Division.
Executive InchargeAudit & Inspection Division
Executive InchargeFinance Division
Executive InchargeCorporate Banking,SME Financing & Home Loans
Executive InchargeIslamic Banking Division
Executive InchargeNew Products &Service Quality Division
Executive InchargeCards Division
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ORGANIZATIONAL STRUCTURE
DEPARTMENTS
Bank Alfalah Limited has the following departments:
v Account Opening Department
v Human Resource Department
v Trade Finance
v Credits
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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 aspectsof a management position, including recruiting, screening, training, rewarding, and appraising
The concepts and techniques need to carry out the people or personal aspects of managementjob 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 theHRM department Bank Alfalah cannot imagine being able to function. At Bank Alfalah, HRMhas great significance, everybody depends on this department for the entire organization to workand succeed in its mission.
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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
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HRM Management Responding To Changing Environment:
Bank Alfalahs HRM Management is responding to changing environment by
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 soon
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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 oralinquiries
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
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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 thestrategic (organizational) and tactical (branch level) requirements.
2.) Create a pool of candidates:
The prospect candidates are attracted through advertisement in the newspapers, on the websiteonline 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 aninterview are made by doing proper job analysis of the job. That includes identifying the jobduties and requirements.
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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. Internal2. 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 hasits own HR department
Head office sanctions recruitment for new employees
Adds in leading newspapers (Dawn, Jang)
College Recruitment (under planning)
Online application forms
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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 postgraduatecandidates for its organization and the process is as follows:
EXPERIENCED PROFESSIONALS
Based on requirements of experienced staff, Bank Alfalah also recruits talent from themarketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals at alllevels who wish to join hands with Bank Alfalah. The procedure for selecting such professionalsis as follows:
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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 qualityof newly inducted staff is not comprised with growth. For recruitment and selection bankspolicy is to hire suitable candidates. By suitable candidates bank refers to candidates havingproper 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, thatprovides its employees with a conducive environment that not only is challenging but also helpsthem in applying and gaining knowledge.
The above figures show that all prospect employees feel confidence in Bank Alfalah as theirprospective employer. Bank Alfalah, as a response to this confidence has three ways ofemploying prospect employees for their organization.
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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 beforegiven a complete status of a Bank Alfalah employee. The major benefit of this procedure is thatBank Alfalah can employee a large number of employees at a lower cost. The procedure foraccepting 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
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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 responsiblefor providing multi-level high quality training programs in following areas:
- Consumer banking operations
- Credit administration/documentation
- Trade finance operations- Marketing & selling skills- Customer service skills- Performance appraisal skills- 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
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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 theJob Training.
OFF THE JOB TRAINING
In Bank Alfalah, Off the JobTraining 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
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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 EffectivenessPERFORMANCE APPRAISAL SYSTEM
Evaluating an employees currentand / 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 workstandards 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)
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BEHAVIOR APPRAISAL
In this service oriented industry behavior is as important as performance on job. To managebehaviors and appraise company has devised a managing behavior system to evaluate their corevalues. 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 tobottom, on the bases of compensable factor. Employee with higher rank gets highest pay andincentives.
Compensation Plans for Employees:
In Bank Alfalah, compensation plan for employees includes:
Basic Salary Bonuses Medical Facilities
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AllowancesIncentive 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. Policy2. Give Full & Final Settlement3.
Half Salary As A Complementary (Optional)
Supplemental Unemployment Benefits
Supplemental Unemployment Benefits are given
1. During Annual Routine Audits2. Other Privileges
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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 2Bonuses For Each Employee Faster Promotion Introduction OfMENTORS
Bank AlfalahMOHTISIB 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 OfMENTORS (HRREPRESENTATIVE) Counseling Services -
Financial, Career, Job-placement, Grievances
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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 OSHAStandards Major ResponsibilityBr. 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 healthproblems 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 Employees2. Angry Employees Management3. Temporary Stop The Working
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4. Counseling5. Real Root Problem6. Use Of Personal Skills7. Professional Attitude Adopted8. Future Avoidance
SWOT ANALYSIS
BAL is one of the fastest growing banks in Pakistan. In the light of these situations we can makean 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 makeitself further strong.
Less Advertisement
Slow in introducing new products
The staff is not satisfied with the salary structure
Gives its staff less benefits
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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 avery calm and friendly atmosphere at Bank Alfalah because of the HRM department and theirpolicies 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 atnight. 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 otherdepartment so that they gain knowledge of other jobs.
Bank Alfalah Limitedshould properly advertise and Communicate to public about the servicesprovided by it, so that more customers will be attracted.
The banks management should give more incentives and pay scale of officers should berevised & improved.
System and operations should be more defined and organized.
IT draw backs should be improved.
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Administration drawbacks should be improved by the strict control of general issues.
Some employees waive the bank charges (Statement charges, cheque book charges etc) thatdecrease 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)
Google (www.Google.com)
Reports & Papers
Annual Report Bank Alfalah 2008 International Finance by Maurice D. Levi Bank Alfalah Limited. (2009). Alfalah 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].