18977219 Bank Alfalah Limited Project of Human Resource Development[1]

Project of Human Resource Development

HR Processes in Bank Alfalah Limited

Submitted To:

Mr. KHURRAM KHAN

Submitted By:

ZEESHAN AMJAD BAIGFAKHAR ARSLAN BUTTUMAIR ASGHAR

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MR. MUDASIR AQIL, GENERAL MANAGER HR, BANK ALFALAH WITH

THE GROUP MEMEBERS

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MISSION STATEMENT

Bank Alfalah Limited is going on the road of progress very successfully assessment of the needs and wants of consumers is an ongoing process at Bank Alfalah, which helps it to continually develop new product and services.At Bank Alfalah Limited the philosophy is that the bank should go to all possible limits to satisfy the customer needs. The Bank is continually formulating new product and services for the growing and diversified needs of its ever-expanding client base. The Bank’s commitment to its customers is evident from its mission statement.“To provide innovative and high quality product toits customers at eh lowest possible rates. To achieveAll set goals regarding services performance and goodwill”

VISIONOur vision is to be a leading financial intuition with a niche in areas where we have a completive advantage with complete banking solution our focus is an improving performance in each of our business to achieve consistent and superior returns of or our highly valued client and shareholders.

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ORGANIZATION HIERARCHY

THE CHAIRMAN

H.H Sheikh HAMDAN BIN Mubarak Al- Nahayan is an important and prominent member of the ruling family of Abu- Dhabi. After the culmination of his studies at oxford he returned and took responsibilities of the State administration in 1988, he was appointed the President of the higher colleges of technology comprising of eight colleges throughout the UAE a responsibility he fulfilled which distinction. In 1990 he was appointed (MIS) Minister of Higher Education and Scientific research.Presently he also holds the presidency of the society of the natural history and National Heritage. In 1992 he become the chairman of the Union National Bank and has since remained involved in strategic management of the institutionDuring the first five year, he effectively managed the bank in the absence of a Board of Director and steered it to success as one of the leading Bank of U.A.E

BOARD OF DIRECTOR

H.E.Sheikh Hamdan Bin Mubarak Al Nahayan Chairman Mr.Abdulla Nasser Hawaileel Al Mansoori DirectorMr. Abdulla Khalil Al Mutawa DirectorMr. Khalid Mana Saeed Al Otaiba Director Mr. Ikram Ul-Majeed Sehgal DirectorMr. Nadeem Iqbal Sheikh DirectorMr. Sirajuddin Aziz Director/CEO

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INTRODUCTION

Bank Alfalah Limited was incorporated in June 21st, 1997 as a Public Limited Company under company ordinance 1984, its banking operations commenced from Nov 01, 1997. The bank is engaged in commercial Banking and related services as defined in the banking companies ordinance, 1962.Bank Alfalah has emerged as one of the leading commercial bank in the financial sector of Pakistan. Bank has made significant contribution in building and strengthening both the corporate and retail banking in Pakistan. Most of its share are owned by a consortium of Abu Dhabi after the debacle of BCCI, the Ministry of finance acquired its three branches and Habib Credit and Exchange Bank was incorporate on June 21st, 1992 as Public Limited Company under the companies ordinance4 1984, and commenced banking operation from Nov. 01st 1992. It is engaged in commercial banking and related service as defined in the banking companies ordinance, 1962.Following the privatization in July, 1997 Habib Credit and Exchange Bank, assumed the new identity of Bank Alfalah on February 25, 1998 and with this a challenge was launched the challenge to transform this bank into a highly professional most efficient and service oriented institution.Charged with the strength of the Abu- Dhabi based consortium and under the leadership of his Highness Sheikh Nahayan Mubarak Al- Nahayan, Minster of Education Govt. of Abu- Dhabi and a prominent member of Royal family the Bank is energized by the vision of the development of consumer sector in Pakistan.Prioritizing its product portfolio in line with consumer needs and wants the bank is committed to develop product that give more value to its customer be it is a simple bank account or complex financial of a major project designing product. Portfolio in response to customers preferences Bank’s product like Royal Profit, Royal Patriot and Royal Custodial are prime examples of quality and innovation providing timely banking opportunities to its customer.Assessment of the needs and wants of its customer is an on going process at bank Alfalah which help it to continually develop new product and services. Some of our new products ALFALAH MILKIAT FINANCE, ALFAHAL KAROBAR FINANCE, ALFALAH QUICK FINANCE.To continuously offer courteous professional and advanced banking solution banks team has recently been energized by going through training programs with a focus on information technology with a team of talented services dedicated professional bankers. Bank Alfalah Limited commits all its energies resources and time to cater to all banking and financial needs of customers. To make banking solutions accessible to make and more people. Bank Alfalah Limited has embraced upon a rapid expansion program. Aiming to provide networking that makes its services available to any of its customer’s in all the major urban centre of Pakistan with a view to go international with its key indicators of progress already soaring to new heights the bank is committed to put all its energies resources and time to bring higher value and satisfaction of its customers employees and share holder.Technological developments are opening up new vistas of solutions of distributing traditional financial product. Concurrently rapid change in customer preferences has related in a major shift from manual to automated services of the bank. Information technology today is the key of the bank to sustain and succeed into the corporate world. Therefore, during the recent past, Bank Alfalah Limited made heavy investment to wards exchanging its capabilities in the area of automation and technology. Bank Alfalah Limited is well positioned to meet client needs with improved competitive advantages. Bank Alfalah Limited is on the way of expansion of its business and branches network presently, there are 295 branches of Bank Alfalah Limited spread all over the Pakistan and 45 still in pipeline to covering major business centers and principle cities

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ABU DHABI GROUP’S INVESTMENTS

ABU DHABI GROUP’S MAJOR INVESTMENTS INCLUDE:

Bank Alfalah Limited, Pakistan United Bank Limited , Pakistan Alfalah Securities (Pvt) Limited Alfalah GHP Investment Management Ltd, Pakistan Alfalah Insurance Company Limited, Pakistan. UBL insurers Company Limited, Pakistan. Taavun (Pvt) Limited Pakistan

DEPARTMENTS: CD (current deposits) Department. Foreign Exchange Department.

Loans and Advances Department.

Accounts Department.

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Communication Department.

Human Resource Department

HUMAN RESOURCE DEPARTMENT HIERARCHY

CORPORATE CULTURE

Bank Alfalah aims to inculcate a nurturing and invigorating corporate culture based on providing a safe, healthy and supportive environment where staff members are valued, respected and able to realize their full potential. This culture is based on the following core values:

CORE VALUES Humility Extreme Customer Care/Focus

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Courtesy and Respect

Honesty, Integrity and Trust

Commitment and Hard work

Creativity, Innovation and Quality

Justice and Fairness to all Stake-Holders

Open, Honest and Direct Communication

Provider of growth and equal opportunity

Bank Alfalah is considered to be a very sound bank in the financial circles. A bank, where the customers can safely keep their money as long as they want. I am pointing some of the major strengths of the bank.

Bank is financially strong and has a huge deposit reserve

Its cost of funds is less as compared to money of its competitors

Highly professional human resource department

Commitment of sponsors

Efficiency

Phenomenal growth

Vastly experienced management

Foreign trade is the focus of bank. it has become an ideal bank for the importers and exporters

As for as Bank Alfalah Ltd is concerned, it is one of the top in all-domestic commercial banks in Pakistan. The rapid increase in branch network shows the Bank’s performance within seven years, which is worth considerable.

This is the largest PCB (Privatized Commercial Bank) in terms of assets and equity base. It provides a full range of commercial banking services with a focus on short term & Long term lending. The investments further reinstate management approach towards risk-asset management whereby only quality investments are booked on the balance sheet.

HUMAN RESOURCE DEVELOPMENTThe constantly changing regulatory and operational environment requires up-to-date knowledge and skills of latest systems. Owing to this reason human resources development is on the management’s top priority agenda. The bank’s training and research wing which is manned by highly competent trainers and researchers is successfully catering to the training needs of the manpower.

In 2000 the bank also started publishing a newsletter aimed at increasing interaction and exchange of views between staff for better coordination’s and communication. The employees are encouraged to contribute articles for this newsletter, which serves the dual purpose of staff development and evaluation of common corporate culture.

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RECRUITMENT, SELECTION AND PLACEMENT

1.1 Initiation of Staff Hiring

All units/Branches of the Bank should systematically forecast their future staffing requirements for timely induction of competent high quality staff. Requirement of additional staff/ replacement should be intimated to HRD through Divisional Heads’/ Regional Managers’/ General Managers’/ Group Heads’ offices. All open positions are first posted internally by HRD at the request of branch/ dept. concerned on the Employee Portal for a minimum period of seven days. Incase vacant positions can not be filled in through internal resources then such vacancies will be filled in through external hiring as per Bank’s recruitment policy.

Staff hiring may be done in batches, in small groups or individually.

The management of the Bank may, at its discretion, employ expatriates. The Bank complies with the relevant provisions of the Emigration Ordinance/Law when hiring such employees.

1.2 Hiring of Batches

When a whole batch of fresh officers is hired, they are first trained at the Bank’s Training & Development Centre (TDC) and then posted to Branches/HO Divisions based on requirement. These batches will be hired under the following categories;

1.2.1- Management Trainee Officers (MTOs)1.2.2- Operations Officers (OOs)1.2.3- Cash Officers (COs)1.2.4- SME Officers/ Credit Officers/ Lease Finance Officers (LFOs)/ Rural Finance Officers (RFOs)1.2.5- Any other category of staff required by the Bank

Before initiating hiring of batch officers, HRD informs all units of approximate timings of such hiring and enquires about their city-wise requirements before the hiring process starts.

1.3 Hiring in Small Groups

Hiring in small groups may be done according to planned phases of expansion of existing branches/units, or upon establishment of new branches/units, or for creating/replenishing staff pools maintained under the supervision of Area Managers/ Regional Managers/ Group Heads in major banking centers.

1.4 Individual Hiring

Individual hiring is to be done from time to time when a branch or unit has a need to induct additional staff, or for replacement of outgoing staff.

The Manager of the Branch/ Department where recruitment is to be made will first fill out the ‘Job Requisition Form’ and send to HRD. After minimum of 7 days of posting on portal, if suitable replacement within the Bank is not available, then external recruitment is allowed subject to HRE Factor ( for BB & SME Group) and other requirements being met and a genuine business need is established.

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Hiring Managers (in initial selection interviews) must not commit any salary range or other perks to perspective external candidates in their initial interviews. Both Salary and Range will be first agreed by HRD and then conveyed to the candidate after clearance by Interview Panel.

1.5 Minimum Entry Requirements

1.5.1- Minimum entry requirement for employment in Bank Alfalah Ltd. in officer’s cadre is graduation from a recognized university of home country or abroad. However, condition of graduation may be waived by CEO to suit the requirements of the Bank, especially for cashiers, sales/ verification/ recovery staff of various Products/ Call Centre, However, such employees will be on Contractual Employment. Their services will be regularized after clearance of test and completion of graduation.

1.5.2- Persons deputed by “External Service Providers” must possess matriculation or higher degree. However, condition of matriculation may be waived by HRD to suit the requirements of the Bank.

1.6 Recruitment of Close Relatives

BAL does not prohibit employment of close or blood relatives of current employees, provided that they meet required eligibility criteria, no conflict of interest is likely to arise and prior approval is obtained from GM HRD. Candidate once appointed should not be placed in the same Branch/Unit in which his/ her close/blood relative is already working.

All candidates, at the time of interview are required to disclose their relationship (if any) with the existing employees in their application form.

1.7 Selection Responsibility and Authority

1.7.1- The schedule given below summarizes the assignment of hiring authority and responsibility :-

Regular/Contractual

Dept. Head/ BM

AM/ RM HRDGM/ GH/ Heads

GM HRD

InterviewPanel/ HRD

CEO

Officer I – III R R Test R -- A --

Officer IV – VI R R -- R R R A

Officers VII – VIII -- -- -- R R R A

Officers IX -- -- -- -- -- -- A

Outsourced Services R R R AOverse

e-- --

RRecommend

ed

A Approved

1.7.2- All appointments of Branch managers, Divisional Heads, Area/ Regional Managers, Range VII and above require subsequent ratification from Board’s Advisory Committee.

1.8 Selection Test

All regular and contractual candidates for Range I, II & III must undergo a selection test

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arranged by HRD. Those obtaining 50 % or above points (allowing for two grace marks) will go to the next step in the hiring process. However, condition of written test can be waived for contractual employment, especially for Product Departments/ Cash Officers/ Call Centre staff etc. The employees of these departments will however have to appear for the test before their services are regularized.

1.9 Selection Interview

Selection interviews should be conducted and evidenced by duly filled interview sheets, as follows:

1.9.1- For Branch Staff : By Branch Manager & Area Manager/ Regional Managers/ Panel Members approved by HRD1.9.2- For Branch Manager & Area Office Staff: By concerned Area Manager/ Regional Manager/ Group Head/ Panel Members approved by HRD.*BM/ Team Leaders should be interviewed by CEO/ Co-Chairman Executive Committees (any one)1.9.3- For Product Departments’ Staff: By concerned Manager & Product Head/ Group Head/ Panel Members approved by HRD1.9.4- For Head Office Division Staff: By concerned Manager & General Manager/ Group Head/ Panel Members approved by HRD.

10 Panel Interviews:

All candidates will be interviewed by panels of senior officers at Karachi and Lahore. Panel members will be approved by the CEO.

1.11 Issue of Offer/Appointment Letters

Offer / Appointment letters will be issued by HRD to be jointly signed by authorized signatories i.e. Recruitment Manager/ DGM/ GM HR as the case may be.

1.12 Verification of Antecedents

HR will arrange verification of references provided by the officers and their highest educational degree/certificate from the concerned university/board. Feedback from his/her last employer (especially incase of Financial Institutions) will also be obtained with regards to his/her honesty, integrity and performance before confirmation of services.

1.13 Probationary Period & Confirmation of Services

5.13.1- As a standard practice, service of new entrants to Bank Alfalah Ltd. is to be subject to

a probationary period. Length of this period is to be determined as follows :

For those with less than five years of prior relevant experience : Six MonthsFor those with prior relevant experience of 5 years and above : Three Months

Confirmation letters will be issued by HRD on recommendation of concerned Branch Managers and AM/ GM/ RM/ GH. For Product Department Staff, concerned Product Department Head may recommend confirmation cases.

1.14 Renewal of Contract

5.14.1- Officers hired on retainership contract will be relieved from the services of the Bank unless the contract is renewed.5.14.2- Before the end of the contract period, the Head of concerned Branch/Unit should fill a “Contract Renewal Form” and forward the same to HRD through concerned Group Head/ GM/ Divisional Head.

In case of renewal of contract for further one year concerned officer will be eligible for salary increase (if recommended by the concerned GH/ GM/ Div Head) based on his/her performance

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rating. Renewal of Contract for above 60 years of age staff will be approved by CEO.

1.15 Placement of New Entrants

As far as possible, attempt is to be made to select candidates belonging to the area where they need to be posted, in order to minimize disturbance and dislocation to newly recruited employees. However, in terms of the Bank’s service contract, services of an employee are transferable anywhere in the country or overseas branches to suit the requirements of the Bank.

1.16Minimum Service Agreement for three years from new employees (who have less than one year’s prior banking experience)

All new joiners of the following categories are required to sign the Bond for Minimum Service Agreement of three years service, as elaborated below:

Category Minimum ServiceSurety Bond amount *

1.16.1

MTO Batch Officer Three years Rs. 300,000/-

1.16.2

Cash/ Operations/ SME/ Agri Batch Officers/ all other batches

Three years Rs. 200,000/-

1.16.3

All new employees with less than one year’s banking experience

Three years Rs. 100,000/-

*1/3rd of the amount of surety will be reduced for every completed year of service.

1.17 Re-Hiring Policy

Those staff who had worked with BAL can be considered for re-employment subject to following:

He/ She was not involved in any disciplinary action Performance Rating was never below “Good”

No adverse comments/ records available on his/ her personal file

Salary will be fixed based on current assignment and responsibility

Salary of re-hired person should be in line with other officers of his/ her seniority

level

Verification of antecedents from previous employer

After clearance of Panel interview and approval from GM HRD

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TRAINING & DEVELOPMENT 2.1 In-Service Training

2.1.1. Training NeedThe objectives of training activities are to keep BAL employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. For this purpose a systematic approach for conducting TNA on scientific basis is being developed by a sub-committee of Learning Council comprising of members from TDC and HRD. The proposed TNA exercise will be launched as soon as it is fine-tuned and after taking all the stake-holders into confidence.

2.1.2. Annual Training Plan An Annual Training Plan shall be circulated on quarterly basis for both Training and Development Centres, keeping in view the requirements of various departments of the Bank currently identified through the annual appraisal form and feedback from Audit Division. After conducting the TNA, this training plan will be more reflective of actual training needs of our staff. The plan would list all workshops, courses & seminars to be offered during the quarter.

2.1.3. Minimum Training For All It is obligatory for each employee of the Bank to attend at least two days of training in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses in advance (as prescribed by the concerned Training & Development Centre). Employees are encouraged to take initiative and get them nominated through their supervising officers for training courses relevant to their needs.

2.2 New Joiners’ Training

All newly inducted staff members are provided systematic training in groups at Bank’s Training & Development Centers at Karachi or Lahore, to make them well conversant with Bank’s operating procedures, rules, history and culture before they commence their job with the Bank. Furthermore, the purpose of this training program is to emphasize on customer service, courtesy and manner, as well as a number of other unique focus areas.

Training plan for new joiners

Category Total Duration

2.2.1. For Branch OfficersFive days (Two days of orientation training., followed by three days of technical training)

2.2.2For Branch Dept. Heads

Four days (Two days of orientation training, followed by two days of technical training)

2.2.3For Branch Managers

Two-day orientation session

2.2.4.For Head Office Staff

Two-day orientation session

Program Structure

First and third Mondays of every month, training courses will be organized in small batches. In some cases, training will be imparted through individual instruction and systematic and guided study of operational manuals (followed by quizzes).

Venue - TDC Karachi (for branches in Southern Areas and Area Multan)

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- TDC Lahore (for other Northern Areas)

Faculty

Mostly in-house faculty, plus some field specialists. For Branch Managers’ orientation session, concerned Area Manager and one or two available Group Heads/ GMs will be invited for discussions/ presentations.

Course ContentsDetailed contents are handed over to candidates upon their arrival at the TDC.

2.3 Batch Training Program

As per the requirements, the Bank recruits batches of fresh graduates under various schemes through a competitive process and offers them comprehensive training. The batch trainees will be also required to go through on-job training by way of structured rotation programs at the end of every module.

2.4

External Training

In order to augment in-house training efforts, external training providers will be utilized on a periodic basis, by nominating Bank Alfalah’s employees to external courses. Alternatively, external training consultants may be invited to conduct training programs exclusively for BAL employees, whenever deemed necessary.

2.5

Branch Managers’ Mandatory Training

All Branch Managers are required to undergo one-month comprehensive training to equip themselves with upto date skills in areas of banking, management, customer service, personal effectiveness and IT etc. Such training is usually divided into four one-week modules in each quarter.

Basic Plans and Time Schedule for Branch Managers’ Training Module

Total Duration Four weeks (broken in four one-week modules)

Participants Managers of all branches

Program StructureFour one-week modules evenly spread over the year (one in each quarter). These modules will be run twice every quarter to cover the entire Branch Manager Population (including IBD Branches)

Venue

- TDC Karachi (for participants from Southern Areas and Area Multan)- Training for participants from Northern Areas will be conducted at some external location at Lahore due to inadequacy of space and other constraints at TDC Lahore Premises.

FacultyA Combination of in-house faculty, field specialists, senior BAL Executives and external Trainers.

2.6

Training Allowance for Training Faculty Members

In order to induce BAL employees to contribute in the important venture of Training and

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Development on core banking modules i.e. Operations, Trade Finance, Credits & other management/ soft skill areas depending on the nature of batch, existing staff selected for faculty position who are posted at field or Head Office, will be provided secondment allowance equivalent to 20% of their gross salaries per month, with the minimum of Rs. 10,000/- and maximum of Rs. 40,000/- p.m.

The period of secondment allowance should not exceed more than three years.

After the period of three years, if the said staff wants to continue in the same position, he/

she will not be entitled for Title allowance.

For Short period placement of any officer to TDC as faculty member, the following Title

Allowance may be allowed:

o For Range IV – VI ------- Rs. 50,000/- per month

o For Range VII– VIII ------- Rs. 75,000/- per month

Compensation and Benefits

3.1 IntroductionStaff monthly salary is to be disbursed before the end of each month usually on 26th/27th of the month. Salary & allowances of each employee is a confidential matter. Those officials, who due to reasons of procedural expediency, are in the knowledge of salary particulars of their colleagues, must treat such information as confidential. Their failure to do so may result in disciplinary proceedings against them. In order to disburse salary on time, branches are advised to ensure that all salary amendments must reach HRD latest by 20th of every month as per.

3.2 Advance against SalaryEmployees in need of funds for an emergency may be allowed advance against salary for the current month to be adjusted in full on disbursement of salary. Since this facility is only meant for emergencies, no staff member may be allowed to make a habit for applying for such advance. Approval shall be obtained from the Departmental Head/ Branch Manager and forwarded to HRD. As a matter of policy, a staff member may avail this facility only twice during a calendar year under the following conditions :-3.2.1. If the staff member is proceeding on leave and next payday falls during vacation period.

3.2.2. In case of emergency.

3.3. Effect of Leave Without Pay on SalarySalary deduction on account of leave without pay will apply to the entire salary package of the concerned employee, including allowances and perks. Moreover, weekends and public holidays falling during this period will also be considered as part of leave without pay.

3.4. Salary & Allowances for Officers & Executives (Minimum starting pay)3.4.1. Salary and allowances of officers and executives of the Bank is as follows:

(All Amounts in PKR)

Range Basic House Util. Conv. Driver’s All.

Furnit.

Maint. All.

Telep.

Resid.Gross

Range Basic House Util. Conv. Driver’s Furnit. Telep. Gross

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All.Maint. All. Resid.

I 3,500 1,400 350 500 - - - 5,750II 5,500 2,200 550 750 - - - 9,000III 8,000 3,200 800 1,000 - - - 13,000IV 12,000 4,800 1,200 1,250 - 1,500 - 20,750V 16,000 6,400 1,600 1,500 - 1,500 - 27,000VI 20,000 8,000 2,000 1,750 - 1,500 - 33,250VII 25,000 10,000 2,500 - 4,500 2,500 3,000 47,500VIII 50,000 20,000 5,000 - 6,000 3,500 4,000 88,500IX 65,000 26,000 6,500 - 7,500 5,000 5,500 115,500

3.5 Salary & Allowances for Non-Officers (Minimum starting pay)

Cadre Basic House Utilities Conveyance Gross

Supervisory

Secretary / Protocol / Any supervisory Position

5,000 2,000 500 400 7,900

Clerical

Assistant / Cashier / Typist / Technical Staff (Maintenance)

3,500 1,400 350 300 5,550

Non-Clerical

Peon / Tea / Office BoyDriver / Guard / Non-Technical Staff (Maintenance) / Sweeper / Cleaner

2,000* 800 200 200 3,200

* This Basic salary is inclusive of Cost of living allowance of Rs 300 as per the S.R.O. 606 (I)/98 dated June 6, 1998.

3.5.1 Reimbursement Limits (for Officers and Executives) (Amounts signify maximum limits payable on a reimbursement basis).

Salary

Range

Car fuel

(**)

Mobile Phone Limit

(***)

News paper

(****)

Magazine

(*****)

Club

Member-ship^

I No No No No

II No No No No

III No*** No No No

IV 100** No*** No No No

V 150** No*** No No No

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VI 200** No*** No No No

VII 250** 2,000*** **** **** No

VIII 300** 3,000*** Yes Yes No

IX 500** 4,000*** Yes Yes 2,000

** Fuel in liters only in cases where Bank car has been provided to concerned officer.

High performing staff members, whose job function necessitates extensive travel, may be authorized some fuel expense reimbursement. All such cases should be forwarded to HRD by concerned branch (duly recommended by Area Manager/Unit Head) for processing, approval and record keeping.Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.

*** A small limit may be allowed on functional basis, to be advised through HRD. Based

on functional requirement, cellular phone limit for following will be as under :-

Ø Branch Managers Rs.3,000/- p.m.Ø Area Managers/Executives-in-Charge Rs.4,000/- p.m.Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.

**** Allowed only for Branch Managers and Senior Management at HO: One mass circulation & a business paper

^ Bank will provide club memberships of a local club to Executives-in-charge and Area

Managers/Country Heads with fixed monthly subscription fees. (The CEO may use his discretion to make exceptions to these rules). One time approval of CEO should be obtained for joining fee & monthly subscription in each case.

3.6. Accommodation

At the discretion of the Bank’s Management, furnished or unfurnished accommodation upto reasonable rental value may be provided to senior officers, transferred from their permanent locations to fulfill the Bank’s requirements.Other staff members when transferred out of city of the permanent residence to suit the Bank’s requirements, may be entitled to the following additional allowance (this needs prior approval from HRD before transfer is implemented). Officers transferred to new location at their own request will not be entitled for this allowance) :-

(All amount in PKR per month)

Salary Range Married Officers Unmarried OfficersI – III 6,000 4,000IV – VI 8,000 6,000VII 10,000 8,000

(In specific circumstances, for managerial assignments, CEO may approve higher limits)

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3.7 Furniture Facility3.7.1 Abolition of Existing Furniture FacilityThe existing furniture facility is being abolished. As such no facility will henceforth be allowed, effective from January 01, 2007.3.7.2 Introduction of Staff Furniture LoanInstead of furniture facility, the Furniture Finance Policy has been introduced which will be effective from January 01, 2007. All confirmed regular employees working in Salary Range IV & above and have completed two years continuous service with BAL will be entitled to avail the facility as per following details:

Range Limit Installment Mark-upIV – VI 150,000 2,300

Mark-up will be charged @ 9% on reducing balance method.

VII 250,000 3,830VIII 350,000 5,370IX 500,000 7,660

3.7.3 Repayment of FinanceThe finance will be recovered in 90 monthly equal installments (Principal + Mark-up) accrued there upon. No relaxation of installments will be given even during the salary of Eid months. (Copy of repayment schedule is attached). 3.7.4 Policy options for those staff who have already availed furniture facility.All those staff members who have availed furniture facility as per previous policy and still have some outstanding amount shall have following: i. They may continue to avail such facility, however, no furniture allowance will be paid to them till the value of furniture presently in their use become zero after charging depreciation as per rules. ii. All those who have already availed furniture facility may avail furniture loan up to the extent of outstanding Written Down Value (WDV) to liquidate the present outstanding balance. The recovery of said loan will be through monthly installments as mentioned above. iii. Those who are not interested to avail Furniture Finance may adjust outstanding balance from their own resources to avail furniture allowance. 3.7.5 Furniture AllowanceAll those who have not availed furniture facility will draw furniture allowance w.e.f. 1st January, 2007 as per following details.

Range AllowanceIV – VI 2,750VII 4,500VIII 6,500IX 9,500

3.7.6 Documents to be obtained from the eligible staff:i. Furniture Loan Application on prescribed format.ii. Details of furniture to be purchased.iii. Promissory Note (For Individuals)iv. Mark up Agreement (IB-6C)v. Letter of Installmentvi. Letter of Disbursementvii. Letter of Hypothecation of Movables3.7.7 Approving AuthorityAssistant Executive-In-Charge, Human Resources DivisionRefer Circulars:1) OPRN-007/HRD/DAN-54/2007 dated 16-01-2007 2) OPRN-023/HRD/MI0207/2007 dated 02-02-2007

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3.8. Fuel AllowanceAt the discretion of the management, officers posted in business units such as Car Finance, Credit Cards, BDO, Home Loans, Agriculture Finance, Credit Marketing, are allowed payment of Fuel Allowance ranging between 50 ltrs. to 200 ltrs. (based on their functional requirements if recommended by concerned Heads of Division / Departments).

3.9. Mobile Phone FacilityThose who are below salary range VII but due to their functional requirement need mobile phone facility, will be eligible for reimbursement of upto maximum Rs.1,500/- per month subject to maintenance of their own mobile phone set. This facility will be available based on recommendations from AM/EI and approval from EI HRD.

3.10 Title AllowanceBranch Managers, Asst. Executives-in-Charge, Product Heads, Area Managers and Executives-in-Charge may be paid Title Allowance till such time they hold these positions.

Officer Position Allowance in PKR per monthExecutives-in-charge 35,000Area Managers 25,000Product Heads 20,000Assistant Executives-in-charge 15,000Branch Managers 10,000Chief Cashiers 3,000Tellers/Cash Officers 2,000

3.11 Bank Car Facility3.11.1. Objective The objective of the Bank car facility is to provide Bank’s maintained transport facility to the Bank’s senior officers, to be used by them for office-cum personal use.3.11.2. Eligibility Bank cars will be provided to Executives in range VII & above upon joining the Bank’s service, or on being promoted to such salary range.3.11.3. Entitlement Types of cars and fuel entitlement for various salary ranges are detailed below:

Salary Range Type of Car Fuel Limit

(In liters)

Bank Maintained

VII 1300 CC 250 YesVIII 1300 CC GL or Equivalent 300 YesIX 1500 CC / 1300 CC 500 Yes

Management of the Bank may allow Bank car facility (1000 c.c.) plus fuel upto 200 liters per month to officers in salary range VI, based on their functional requirements if recommended by Executives-in-Charge/Area Manager.3.11.4. Second car for Executives-in-Charges and Area ManagersExecutives-in-Charges and Area Managers will be eligible to have second car (1300 c.c.) based on their functional requirement. Area Managers may also avail additional 100 liters fuel in addition to their fuel entitlement mentioned in above (upto maximum 500 liters). 3.11.5. Repair & MaintenanceMaintenance costs of Bank cars allotted to the Executives/Officers will be borne by the Bank.

3.12 Profit Bonus/Special Cash Prize/Ex-GratiaProfit Bonus will be paid to the employees as and when declared by the Bank’s Management, based on guidelines provided in the respective bonus circular. Special cash awards/Ex-gratia/Bonuses may be paid based on outstanding performance with the approval of CEO.

3.13 Provident Fund (PF)3.13.1. All permanent confirmed employees are eligible for membership of Bank Alfalah Ltd. Employee

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Provident Fund Scheme. An employee will contribute an amount equivalent to one month’s basic salary in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an equivalent amount will be contributed by the Bank.3.13.2. PF deduction will continue to be made from monthly salary even if an employee has resigned and is working during the notice period. Membership of PF Scheme will be automatically cancelled on the last working day of the notice period.

3.14 Cash Award on Passing Institute of Bankers Diploma ExamsBank Alfalah, as a matter of policy encourages its employees to appear for the IBP Diploma Exams, the syllabus of which has recently been upgraded and expanded to include additional subjects important for professional bankers. Towards that end, it has been decided to award cash prizes to those employees who pass the said exams, as detailed below:

Stage of IBP Diploma 1 st Attempt 2 nd Attempt 3 rd Attempt Onwards I 50,000 30,000 10,000II 75,000 50,000 15,000III 100,000 75,000 25,000

3.15 Reimbursement of professional courses’ feeBank Alfalah encourages its officers and staff to enhance their professional competence to meet the growing challenges of the financial industry. Part of the cost of registration/admission/exam fees will be reimbursed to those employees who undertake and successfully complete higher degrees and professional courses related to banking and finance (from recognized institutions) to improve their competence and qualifications. Details of this facility are available with HRD.

In case an employee resign within one year of last payment received, all payments made in respect of above will have to be refunded to the bank by the said employee. Detailed policy guidelines are available in HRD record.

3.16 Staff InsuranceThe Bank has arranged the following types of insurance for its full time staff, at its own expense. The Bank’s Management may decide, at its discretion, to apply some or all of the benefits of any of these policies to staff engaged on contractual basis. Various features relating to these policies are subject to amendment from time to time. Benefits currently available are briefly introduced below:3.16.1. Hospitalization Insurance Coverage for Employees and their dependent Parents, Spouse and ChildrenWe are pleased to advise that Group hospitalization insurance policy has this time been renewed from 1st January, 2008 till 31st December, 2008 through M/s Alfalah Insurance Co. Ltd. Details of benefits in various salary ranges are given below. It is further emphasized that only those eligible employees who have sent the requisite “Family Information Form” complete in all respect are covered under this policy. Please also note that Family / Dependents of all regular employees and contractual employees above 60 years of age are covered. All other contractual employees below 60 years of age are covered for “SELF” only.

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Following will not be covered under bank’s hospitalization policy: - Male children above 25 years of age. - Male children below 25 years but married or engaged in a gainful employment. - Married daughters. - Working spouse if availing medical facility from any other source. - Dependent parents not residing with the employee or are gainfully employed. M/s Alfalah Insurance will be providing Insurance cards to all our staff members which will be required to be presented in original to the concerned hospital authorities in order to avail hospitalization benefits from panel hospitals. The original letter / card must therefore be kept with care during the entire period of hospitalization coverage.Any clarifications on contents of this circular may please be directed to under signed at HRD, H.O. Karachi (Tel: 021-2461314, 2414030 Ext – 2236).Meanwhile, in case of any medical emergency any of the following may be contacted: - Helpline Alfalah Insurance 0321- 4041555 - Dr. Fawad Sarwar (Alfalah Insurance Lahore office) 0321- 4227676 - Dr. Syed Rehan Jalal (Alfalah Insurance Karachi office) 0321- 7031393 - Mr. Syed Fariduddin Hyder (BAL HRD H.O Karachi) 0300- 2007736 - Mr. Mubashir Iqbal (BAL HRD H.O Karachi) 0300 -2834938Refer Circular:1) HRD/R2008/MI Dated December 31, 2007. 3.16.2. Group Mortgage Insurance CoverageLives of Employees of the Bank are covered upto the outstanding balance of House Finance liability (in the name of concerned employee or spouse) with the Bank would be taken over by the Insurance Company and no liability will be borne by the family of the deceased (subject to completion of certain formalities required by the insurance company).

3.16.3. Group Mortgage Insurance Coverage For Conveyance Finance (for Clerical and Non-Clerical Staff Only)Lives of Clerical and Non-Clerical Staff members are covered upto the outstanding Conveyance Finance liability with the Bank which would be taken over by the Insurance Company and no liability will be borne by the family of the deceased.

3.16.4. Life Insurance Coverage

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Range/ Cat.

SELF PARENTS(Rs.)

ROOM & BOARD

MATERNITY

PreviousRs.

RevisedRs.

PreviousRs.

RevisedRs.

Normal(Prev.)

Normal(Rev.)

Caesarean(Prev.) Rs.

Caesarean(Rev.) Rs.

IXA

500,000

500,000

150,000 4,800 Private Room

30,000 40,000 45,000 60,000

VIIIBI

400,000

400,000

125,000 2,700 Private Room

20,000 30,000 30,000 45,000

VIIBII

400,000

400,000

125,000 2,150 2,500 20,000 30,000 30,000 45,000

IV-VIC

300,000

325,000

100,000 1,300 1,800 15,000 20,000 22,500 30,000

I-IIID

200,000

225,000

75,000 1,000 1,600 10,000 15,000 15,000 25,000

Non OfficersE

150,000

175,000

50,000 800 1,000 7,000 10,000 10,500 15,000


All employees of the Bank, who are on Bank’s payroll (whether in regular or contractual employment), upto the age of 65 years, will be covered under the Group Life Insurance arranged through insurance company as per following details.

Categoryy Range Sum Assured in PKRA IX & above 5,000,000B VII – VIII 3,000,000C IV – VI 2,000,000D I – III 1,500,000E Non-officers 1,000,000

3.16.4.1. In addition to life coverage, the Bank will has also obtained coverage for permanent disability due to accident and sickness upto the age of 60 years. In case of disability, benefit will be paid according to percentage of disability as per schedule provided by the insurance company.

3.16.4.2. The insurance policy is subject to conditions and exclusions provided by the insurance company details of which shall be maintained by the Human Resources Division.

3.16.4.3. Coverage: - Death due to any causeDisability due to sickness and accident as per schedule of disability

3.16.5. Follow-up TreatmentIn addition to the above, regular employees, their parents, spouses and children suffering from serious illness (see list below) will be entitled for reimbursements of cost of medicines, lab tests and consultation fee subject to the following,

3.16.5.1. If the treatment is likely to continue for a minimum period of six months or more.

3.16.5.2. If the treatment expenses for one month are equivalent to 10% or more of the monthly Basic Salary of the concerned employee.

These claims will be lodged to HRD on Follow-up Expenses Claim Form as per along with medical bills, doctor’s prescriptions etc.

List of Diseases Eligible for Follow-up Treatment§ Cardiovascular

disorders

§ Strokes§ Cancer

§ Multiple Scleroses

§ Hepatitis B & C§ Major burns

§ Tuberculosis

3.16.6. Medical CheckupIn addition to hospitalization cover, a special arrangement has been made with the insurers whereby they will arrange for annual medical checkup of all officers in salary ranges VII and above. Arrangements have also been made to get medical checkup done for certain job applicants if so decided by HRD.

3.17 Uniform for Non-Clerical & Maintenance StaffAll Non-clerical and Maintenance staff are provided uniform as per following details :-

Season Clothing Item Pairs of socks Pairs of shoesSummer Two safari suits Two One

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Winter One suit (jacket & trousers) with two shirts Four One3.18 End Service Benefits

BAL employees are entitled to the following end of service benefits:

3.18.1. Provident Fund (Own + Bank) plus investment income.

3.18.2 Gratuity payment:-• If period of service is less than 05 years, no gratuity will be payable.

• If period of service is 05 years and above, gratuity will be payable equivalent to one month’s basic salary (last drawn) for each completed year of service.

• Period of any overseas posting other than with Bank Alfalalh Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with Bank Alfalah Limited any local law governing gratuity will be applicable and if he/she is posted back in Pakistan the period of overseas posting with Bank Alfalah Limited shall be excluded provided gratuity is paid according to the local laws of overseas posting.

• Unpaid study leave or long leave without pay will not be considered for payment of Gratuity or any other benefit.

3.18.3 Encashment of un-availed Privilege Leave (only in case of death / termination / Voluntary Severance Scheme)

3.18.4 The employee or his/her family may retain Bank’s car (if provided) on book value or 10% of the original purchase price whichever is higher (only in case of death or retirement) provided the employee has spent atleast four years service with the bank.

3.19 Income Tax LiabilityEmployees are personally responsible for preparation and submission of their personal income tax and any other personal taxation returns and reports, and for the payment of taxes, and of other statutory dues. The Bank undertakes no responsibility or liability in this respect, except for deduction of taxes at source, depositing the same with the concerned authorities, submitting required statements to the income tax department, and providing a salary and tax certificate for the tax year to the concerned employees.

LEAVE RULES

All employees of the Bank including contractual staff, on completion of one year’s service with the Bank are entitled to certain number of days’ leave in a calendar year. This entitlement is spread over a few categories of leave, as elaborated below:

3.20.1 Privilege Leave (PL)

3.20.1.1. Entitlement30 days with full pay in a calendar year, to be credited on pro rata basis to each employee’s leave

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account on 1st January of each year. Maximum PL balance for any employee cannot exceed 60 days.

3.20.1.2. New JoinersPL balance of those joining during the year will be calculated on a pro rata basis.

3.20.1.3. AuthorizationAll PL should be availed after obtaining approval from the sanctioning authority.

3.20.1.4. AvailmentThe employees must avail at least 15 days’ continuous leave from the available privilege leave balance during a calendar year. For this purpose, a leave roster for the entire staff strength of each unit must be drawn, under the supervision of the Head of each unit, and a copy forwarded to HRD for record. During notice period if an employee has resigned, no privilege leave will be allowed even if the leave shows credit balance.

3.20.2 Casual Leave (CL)

3.20.2.1. Entitlement10 days in a calendar year, to be credited on pro rata basis to each employee’s leave account on 1st January of each year. Outstanding balance of CL as of December 31 shall lapse as un-availed CL cannot be carried forward to next year.

3.20.2.2. New JoinersCL balance of those joining during the year will be calculated on a pro rata basis.

3.20.2.3. AuthorizationAll CL should be availed after obtaining approval from the sanctioning authority. However in case of emergency the concerned employee must inform the sanctioning authority by phone or fax (etc), by the morning of intended leave. In such cases, upon return, the concerned employee should submit a leave application form giving due explanation. Disciplinary action may be taken against employees who frequently absent themselves from duty on the pretext of CL without even informing the sanctioning authority.

3.20.2.4. AvailmentCL should normally be for only one day at a time. Only in cases of personal emergencies, or bereavement in immediate family, may an employee be allowed CL up to three days at one time.

3.20.3 Sick Leave (SL)

3.20.3.1. EntitlementEight days in a calendar year, to be credited to each employee’s leave account on 1st January of each

year. Maximum SL balance for any employee cannot exceed 16 days at any point of time.

3.20.3.2. New Joiners

SL balance of those joining during the year, will be calculated on a pro rata basis.

3.20.3.3. AuthorizationFor medical situations, SL should be availed after obtaining approval from the sanctioning authority. Leave application in such cases should be accompanied by a medical certificate from a registered

medical practitioner

3.20.3.4. AvailmentIn cases of emergencies, an employee availing SL must inform his/her sanctioning authority as soon as possible of his/her intention of availing SL. Upon resumption of duty, a leave application form must be submitted to the sanctioning authority duly supported by medical certificate for approval of the sanctioning authority. Any leave without Medical Certificate will be considered as C/ L or P/ L. This certificate must be issued by a registered medical practitioner. Where a medical certificate is not submitted with the leave application for one day leave, deduction will be made from the balance of Casual Leave. For leave availment of two or more days, deduction will be made from Privilege Leave

balance.

3.20.4 Unpaid Study Leave / Leave Without Pay (LWP)

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Leave without pay for more than one month and unpaid study leave will be approved by HRD based on merit of each case. Detailed guidelines are available with HRD.

3.20.5 Maternity Leave (ML)

3.20.5.1. EntitlementAll married female employees subject to completion of four months service are entitled to maternity leave, on full pay, of maximum 12 weeks i.e. up to six weeks leave prior to delivery and at least six

weeks after the baby is delivered.

3.20.5.2. Authorization Maternity leave should be availed after submitting leave application together with medical certificate /

medical records and obtaining approval from the sanctioning authority.

3.20.5.3. AvailmentIf requested by the employee and supported by a medical certificate, maternity leave may be

combined with balance of P/L or S/L due to the staff member.

3.20.5.4. Sanction of LeaveAuthority for sanction of leave will be vested as per following (under advise to HRD):-

Applicant Approving Authority

Branch Staff Branch Manager

Branch Manager Area Manager

Area/ Regional Office StaffArea Manager/ Regional Manager

Area Managers Regional Manager/ Group Head

Regional Managers Group Head

Head Office Staff Div.Head/ GM/ GH

Div. Head/ GM/ GH CEO

Application for Maternity Leave and Unpaid Study Leave/ Leave Without Pay must be processed for approval through HRD.

3.20.5.5. Leave RecordProper leave records should be maintained for all employees at their respective establishments according to the prescribed format. At the end of each month the officer maintaining leave records must go through the attendance register to counter-check that all ‘absences’ or ‘leaves’ marked against various employees are supported by leave applications and other documents, as required.Maintenance of leave records is done as follows:

Maintenance of leave records is done as follows:

Applicant Record maintained at

Branch Staff Concerned Branch

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Branch / Chief Manager Area Offices

Area/ Regional offices Area/ Regional Offices

AM/ RM/ Div. Head/ GM/ GH

HRD

All Head Office Staff HRD

Consumer Finance Consumer Finance Group

All sanctioning authorities should forward approved leave applications and joining reports to concerned offices as listed above for record keeping purposes.

3.20.5.6. Permission to Leave StationWhere an employee proceeding on leave intends to travel outside his place of posting, the fact must be highlighted in the leave application form for specific approval of the sanctioning authority.

3.20.5.7. Optional Leave (Festival Leave ) Optional leave can be availed by the employees only if announced by the State Bank of Pakistan..

3.21 Transfer Travel & Baggage Rules3.21.1. Eligibility, Authorization & Other ConditionsStipulations of these rules relate to official travel on the Bank’s business and applies to the Bank’s employees only. Expenses relating to accompanying family members will not be admissible except on permanent transfers.3.21.1.1. Objectives of official travelBefore official travel is contemplated and authorization obtained, the employee initiating travel plans, should identify clear and specific objectives that the visit is expected to achieve. Employees contemplating official travel, and senior officers authorizing it, should ensure that expected benefits from planned travel outweigh the costs related to such travel. In case of doubt, a thorough evaluation of travel plans may be called for.3.21.1.2. Authorization for official travelAuthorization for official travel and related expenses may be granted (on ‘Travel Authorization Form’) by the following authorizing officers :-

For Approving AuthorityArea Managers / EI CEOAll employees working in their respective Branches and Area Offices

Area Managers

Employees working in their Divisions / Departments

EI

Whenever an “Authorizing Officer” (other than CEO or EI Strategic Planning) wishes to arrange a meeting for which more than three participants need to undertake travel, prior approval from CEO will be required.Prior to undertaking travel, concerned officers must obtain written approval from Authorizing Officers on “Travel Authorization Form” and forward a copy of the same to the office(s) responsible for purchase of travel tickets and arranging hotel accommodation.

3.21.1.3. Exceptions and deviationsStrict adherence to these guidelines should be ensured by Authorizing Officers. In extra-ordinary circumstances, exceptions may be allowed after obtaining approval from EI HRD.

3.21.1.4. Senior Officers traveling together

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As a precautionary measure, senior officers of the Bank should not travel together in groups of more than three people. This applies to all means of transport, whether by air, road or rail.3.21.2. Mode of TravelEntitlement for travel by various modes of travel is as follows :

3.21.2.1. Air Travel

DesignationClass of TravelDomestic International

Range IX & above Business Class Business ClassRange VIII Business Class Economy ClassOthers Economy Class Economy Class

As far as possible the concerned officers should travel by direct routes and without any stopovers for personal reasons.

3.21.3. Hotel Accommodation3.21.3.1.

Staff Range Domestic InternationalIX 5 Star 4 StarVIII 4 Star 3 StarVII 4 Star 3 StarIV – VI 3 Star 3 StarI – III 2 Star / Guest House 2 StarClerical Staff Rs 500/= -Non-Clerical staff Rs 250/= -

3.21.4. Daily AllowanceEmployees who do not wish to use hotel accommodation can claim a daily-allowance to cover cost of hotel accommodation, food and refreshments, laundry etc.. Cost of local transport while on outstation duty may be claimed separately on the ‘Travel Expenses Claim Form’. For the purpose of calculating Daily Allowance, only the number of nights away from home base should be counted. Daily Allowance rates are as follows:

Staff Range Domestic

(Amount in PKR)

International

(Amount in USD)IX 3,000/= 100/=VIII 2,500/= 75/=VII 2,000/= 60/=IV – VI 1,500/= 50/=I – III 1,000/= 25/=Clerical Staff 500/= -Non-Clerical staff 250/= -

3.21.5 Audit Officers’ Cash Allowance During Audit DutySpecial arrangements have been made for audit officers on audit duty. They will avail hotel accommodation usually in hotels/guest houses pre-selected jointly by Audit Division and HRD. However, they will only use the hotel for bed and breakfast facility (if included with room rate). The following per day cash allowance will be admissible to them in lieu of lunch, dinner, tips, laundry, telephone calls etc.

Range Amount in PKR per dayI – III 750/=

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IV – VI 1,000/=VII & above 1,250/=

3.21.6 Traveling on Retirement from Service3.21.6.1. An employee who retires from the service of the Bank will be reimbursed admissible one-way traveling costs for self and family members plus cost of luggage transfer for his/her journey from last place of posting to his/her permanent place of residence in Pakistan as recorded in his/her personal file at HRD.

3.21.7 Permanent Transfer (Inter City)3.21.7.1. TicketsAir tickets (or railway or coach tickets, as applicable) for the staff member, spouse and dependent children.

3.21.7.2. Insurance value of personal effectsThe maximum value of an officer’s personal effects on which the Bank will pay the premium shall be as under :-

Range Amount in PKRVII & above 2,000,000IV – VI 1,500,000I – III 1,000,000Non-officers 500,000

The insurance of personal effects will be arranged by Establishment & Administration Division through approved insurance companies.

3.21.7.3. Transportation personal effects

Range Container SizeVII & above 40 ft.Other officers 20 ft.

3.21.7.4. Relocation expenseto meet extra-ordinary expenses caused by a permanent inter-city transfer, the Bank will pay 50% of monthly basic salary to an employee under transfer, with a minimum payment of Rs.5, 000/- for non-officers & Rs. 10,000/- for officers (whichever is higher). If the transfer is affected at the request of officer, no relocation allowance will be payable.

3.22 Other regulatory requirements

The HRD will ensure deductions of Employees’ Old Age Benefit Contributions, Social Security Contributions, Education Cess, etc. as per the rules and provisions of the relevant statutes (if applicable)

Performance Management

PERFORMANCE APPRAISAL SYSTEM

4.1. IntroductionBank Alfalah’s performance appraisal system is improved and upgraded from time to time in line with the Bank’s requirements, as well as with industry practices. HRD keeps all units of the Bank informed of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, periodic monitoring and final appraisals.

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4.2. Objectives of Performance Appraisal: Improving the performance of the Bank and its staff members Laying a solid foundation for relationships between staff and management

Clarifying performance targets for all

Using the process for career planning and professional development of staff

Review of salary, assignment and career path

Award of bonus(es)

Provide a basis for Promotion to higher salary ranges and functional responsibilities.

4.3. Role of Immediate Supervisor and Branch Manager / Unit HeadDetailed guidelines are issued by HRD by the end of each year regarding Performance Appraisal of all employees for the year.

4.4. Salary Increments/Adjustments & Performance Bonus(es) Review of salary and allowances, which is based on previous year’s performance, is carried out once a

year during the first quarter of every year. The Bank’s performance appraisal (PA) system is primarily based on goal setting in the beginning of a year, monitoring by supervising officers on bi-annual basis and final evaluation, using standardized performance appraisal forms at the end of the year. Some weightage is also given to evaluation of enabling personal skills and personality traits, as listed in the Appraisal Form.

Appraisal exercise is done only for those employees who have completed six months’ service with the Bank on 31st December and whose appraisal forms have been received from their respective offices within the specified time limit.

The extent of salary increases will depend on the system and formulae adopted by the Bank’s Management for the year in question.

With reference to salary levels prevalent in the Bank and in the marketplace, salaries of certain key staff members may be adjusted during the appraisal exercise. This will be done in consultation with concerned Branch Manager/Area Manager/Executive-in-Charges

To reward high performance during the period under review, performance bonuses may be awarded to deserving officers based on their performance rating.

4.5. Promotion to Higher Grades

Promotion to higher grades depends upon the following three factors : Bank’s overall policy of promoting certain number of people in specified salary ranges to maintain a

balance between number of employees in various ranges. Requirements emanating from operating units for staff of higher seniority to suit their operational

needs, based on their current assignment.

4.6. Promotion Procedure

The promotion procedure revolves around the following two activities, which are to be completed and recorded as described below.

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Promotion InterviewInterviews for promotions to specified positions in the branches will be conducted by one or more of the following officers of the Bank as elaborated below:Branch Manager (BM)/Chief Manager (CM), Area Manager (AM), Executive-in-Charge (EI).

For promotion to 1 st Interview 2 nd Interview 3 rd Interview Ranges I, II & III BM / CM AM -Ranges IV, V & VI BM / CM AM EI – HRDRanges VII & VIII AM CEO & / or EI – St. Planning

Promotion interviews for Head Office staff will be conducted as follows

For promotion to 1 st Interview 2 nd Interview 3 rd Interview Ranges I, II & III Head of Dept. Concerned EI ---Ranges IV, V & VI Head of Dept. Concerned EI EI – HRDRanges VII & VIII CEO --- ---Range IX CEO --- ---

4.7. Succession PlanningSuccession Planning is the process of systematically identifying all key positions within Bank Alfalah (especially those which are likely to fall vacant or to open up in the near future due to promotion, resignation or retirement). The next stages in the process are to select and then to prepare candidates from within the Bank

Summary Benefits

The primary benefit of succession planning is that a sequence of personnel actions is initiated so that one or more candidates are identified for each key position in advance of actual need. This prior identification permits opportunities for mentoring and developmental activities to improve their readiness to succeed to specific positions. The benefits of succession planning are;

BAL would grow its own future managers rather than recruiting outside the organization. These managers will be fully conversant with the organizational culture prevailing at the Bank.

The learning curve for future managers to prepare for meeting challenges of higher responsibility will shorten.

Commitment and loyalty among officers aspiring for higher positions will increase. Morale and motivation will also be enhanced, while staff turnover will go down.

Key Elements of the Succession Planning Policy

BAL Succession plan to achieve its goals, the following key elements are to be incorporated in its design:

CEO and top management support Integration with strategic business planning and projected changes in the

organization

Identification of critical management positions, skills required for incumbents and gaps in management succession

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Time lines for filling succession gaps for organizational and individual needs

Job profiling to identify critical competencies for effective performance in specific jobs

A system for communication of the succession planning process to field management

A system for identification, nomination and selection of successors, based on a review of the data on all potential candidates, including appraisals of performance and potential, experience and skills, education, salary history and personal career goals

Determination of training, development and experience needs of candidates, including a system for monitoring, feedback and modification of such development plans

A review of transfer and placement needs at the point in time when those individuals are ready to advanceCritical positions to be focused

BAL Succession Plan is to focus on three tiers of management personnel in all units of the Bank. Succession plans for senior management levels in Tiers A (Senior Management) and Tier B (Managers of Branches/ Units) will be overseen by HRD. Succession plans for Tier C positions (Departmental Heads at Branches & Section Heads at HO/ Product Units) will be drawn and managed by concerned management at Tiers A and B, having received guidance and training towards this end from HRD.

Talent Pool

A Talent Pool of bright and young employees, having post graduate degrees from reputable institutions and two years’ experience with BAL, will be provided training and development, and will be promoted to positions of higher responsibility on a fast track basis.

Training and Development Needs

HRD and TDC Management, in consultation with Senior Management of the Bank, will draw Training & Development plans for all officers nominated as successors, as well as those placed in the Talent Pool. HR Committee will monitor the progress of Training & Development Centers in providing focused training to both the groups: Nominated Successors and Officers in the Talent Pool.

The following step by step plan is suggested for the implementation BAL Succession Planning Program:

HRD to institute a system of identifying gaps, getting successors nominated for Tier A and Tier B positions and to prepare a quarterly progress report to be presented in HRMC meetings

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The HR Management Committee will review progress of succession planning program during its quarterly meetings. The committee will have the authority and responsibility to make decisions regarding ratification/ nomination of BAL staff as successors, as well as nomination to the talent pool. It will also have the authority to place staff members nominated as successors, as well as those in a talent pool, in managerial positions.

A Talent Pool is to be established consisting of potential candidates for managerial positions. Staff placed in Talent Pool should also be available for assignment for vacant successor positions with in their existing Branches/ Units/ Areas or in other units throughout the network.

Training needs are to be identified, training programs developed (or identified externally) and conducted for officers nominated as successors or placed in the Talent Pool.

HRD is to periodically measure the success of the succession planning program and process. A review and audit process should identify supply and demand, and verify what is working and what is not. It should also track career paths of officers nominated as successors, as well as those in the Talent Pool.

DISCIPLINE

Accountability of EmployeeEmployees shall faithfully and punctually account to the Bank or its authorized officials for all moneys, drafts, securities, account books, registers, papers, vouchers, writings, goods and chattels or other property, which they may receive as employees of the Bank on behalf or on account of the Bank or of any member of the Bank.

Grounds for Disciplinary ActionsWhere an employee:

Commits breach of rules and regulations of the employer or of discipline or; Contravenes instructions/orders issued to him in connection with his official work, or;

Displays negligence, inefficiency, or indolence, or;

Knowingly does anything detrimental to the interests of the Bank, or;

Is guilty of any other act of misconduct or insubordination, or;

Becomes bankrupt or makes any arrangement or composition with his creditors, or;

Becomes of unsound mind, or;

Is convicted of any criminal offense or found guilty of any act of moral turpitude, other than an offense which,

in the opinion of the Bank, does not affect his/her position as an employee of the Bank, or;

Commits any act which, in the opinion of the employer, tends to bring the officer or the employer into disrepute, or;

Contravenes the provisions in respect of transferability of his services to any office of the Bank;

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The competent authority, in its sole discretion and without limitation, may impose on him/her one or more of the following penalties.

Penalties Consequential to Disciplinary Actions Reprimand Postponement or stoppage of increment or promotion

Forfeiture of pay for any period of unauthorized absence from duty

Recovery from pay of the whole or part of any pecuniary loss caused to Bank Alfalah Ltd. by the employee.

Termination of service.

Dismissal from service which will involve permanent disqualification for future employment in Bank Alfalah Ltd.

Bank’s property in custody of employeeThe Bank’s property (e.g. accommodation, car, motorcycle, house, PC/laptop, mobile phone etc.) which has been in use/custody of an employee who is retiring, resigning or is under discharge or dismissal, must be handed over to a duly authorized representative of the Bank, on or before the employee’s last working day, unless another date has been approved in writing by the Bank.

Handling of serious grievances & harassment casesBank Alfalah Limited attracts diversified staff from various corporate, geographical, ethnic and religious backgrounds. The Bank shall institutionalize mechanisms to safeguard against the risk of violation of accepted norms of conduct in the day to day interaction among staff members, and between supervisory staff and their subordinates.

In order to safeguard the rights of the employees at such risk, the Bank has nominated an Organisational Ombudsperson titled Bank Alfalah Limited Mohtaseb (BALM), an independent officer reporting to CEO.

PERFECTION IS ONLY THE CLAIM OF ALLAH ALMIGHTY. NO OTHER BEING LIVING OR DEAD CAN SAY THIS FOR ITSELF. SIMILARLY, BANK ALFALAH ALSO HAS SOME SHORTCOMINGS THAT NEED TO BE MENTIONED:

Bank Alfalah Limited Does Not Possess Foreign Network Most of the employees are overloaded with work Inefficient software Bank Smart No Advertising in Electronic media It is step behind in using new technology as compared to other banks Disproportionate presence of Old Staff in the upper management Hierarchy Skill Set Of Employees Is Not Up to The mark as there is no job rotation Less efficient computer and I.T system Foreign banks still are a little more prestigious There is uneven distribution of work and promotions are not very timely

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It is slow in the introduction of new services

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18977219 Bank Alfalah Limited Project of Human Resource Development[1]

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Transcript of 18977219 Bank Alfalah Limited Project of Human Resource Development[1]