54208721 Alied Bank Final Report

INTERNSHIP REPORT

ALLIED BANK LIMITED (ABL)

GT ROAD BRANCH, PESHAWAR

Submitted by:

ZEESHAN ALI

MBA-022(HRM)

CECOS UNIVERSITY OF IT AND EMERGING SCIENCES,

HAYATABAD PESHAWAR

APPROVAL SHEET

Internship report submitted to institute of Management and Information Sciences

CECOS University Peshawar as a practical fulfillment of the requirement for the

degree of (Master of Business Administration) Approved by Supervisor Committee.

COMMITTEE

MR. Imran Siddiqui

Signature: _________________ Remarks : ______________

Examiner 1:

Name: ____________________ Signature: ______________

Examiner 2:

Name: ____________________ Signature: ______________

Examiner 3:

Name: ____________________ Signature: ______________

Incharge : Deptt of Mgt.Sc IMIS Director

Mr. Imran Siddiqui Mr. Syed Muhammad Taqi

Signature: _________________ Signature: ______________

CECOS UNIVERSITY OF IT AND EMERGING SCIENCES,

HAYATABAD PESHAWAR

PREFACE

The purpose of internship is basically to judge the basic knowledge of the

student regarding his field of specializing. It helps the examiner in knowing about the

degrees to which the student has acquainted himself with the knowledge, which he

has acquired in the classroom, in its application in the practical shape or in the real

world.

Instead of dull and complicated topics interesting and useful topics have been

included to achieve the end it has been written for. These topics have and outstanding

and inspirational value for all its readers.

Firstly, I am thankful to Allah Almighty for enabling me to accomplish this

report. I will always be grateful all the professors of the CECOS University who help

me during the report. And special thank to Sir Mr. Imran Siddiqi who has been a

constant source of inspiration and encouragement for me during this entire period.

I am also indebted to my parents, siblings, colleagues and friends for their

invaluable support-one way or the other. Lastly, I pray my Allah to give a boost to

cement sector in the best interest of Pakistan.

Happy regarding

ZEESHAN ALI

Acknowledgements

I am very thankful to the management of the Allied Bank Limited for

giving me permission to start internship in their esteemed organization.

I am thankful to all of the officers and staff of the Allied Bank Limited,

GT Road Branch Peshawar to provide me a congenial work environment and have

better cooperation and coordination with me and the way in which they interact with

me is highly commendable and worthy to be praised.

I am also thankful to the people who assisted me in finally preparing

this report and sharing of information necessary to complete this report. The

environment in which I completed my internship was highly cooperative, friendly and

helpful in accumulation of immense knowledge and experience.

I hope the knowledge and experience which I gained from this

environment would certainly be helpful in my practical life after completion of my

MBA degree.

Zeeshan Ali

.

EXECUTIVE SUMMARY

The main aim of doing the six to eight week internship after passing 20

subjects of MBA program is to acquaint the students with some practical knowledge

about the theories they have already studied at the university. I did internship in the

Allied Bank Limited and gather a lot of practical information and experience about

how a large organization works. I go through all the important human resources areas

of the organization i.e. history and organizational structure departmentation the office

and human resource analysis and recommendation about HR and general etc

, Training, Performance Appraisal, Recruitment & Selection and other

related areas and I got a lot of diverse practical knowledge about how to communicate

upward, downward and at lateral level. It will be very helpful in my practical life

when I independently enter into a competitive business environment. This MBA

degree along with the practical internship experience will certainly help me in

exploring my ideas, skills and knowledge. Apart from my own experience and

knowledge this report may also help other MBA students guiding towards right path

in the related field of Business Administration.

This report covers every aspect of the Human Resource Management

functions in any contemporary business environment. It includes theoretical

knowledge and practical experience about how to recruit and select a new candidate,

how to orient and train them, how his compensation will be fixed and how to retain

and motivate them by offering a handsome compensation package so that he can work

with greater devotion and motivation. This report also has information about how to

handle the diverse workforce in today businesses, how to have their effective career

planning and how the compensation is linked to the performance. As in the today’s

businesses compensation is directly related to the performance and work done by the

workers/employees. This report also have information how a manager handle a group

of people and workers in the form of a union. How a union members and workers

belonging to a particular union can be negotiated. How their demands are protected

and fulfilled. How a manager respond to a diverse situation of strikes/lockout after

failure of collective bargaining or dialogues between union and management.

Table Of Contents

1. Objectives of studying Allied Bank Limited………………………..7Introduction to the organization…………………………...………..71.1 History of ABL………………………………………….……81.2 General Information about ABL……………………….…..111.3 ABL GT RoadBranch…………………………………… …13

2. Performance Analysis…………………………………….…..…… .103. Organizational Structure of the HRM department………..……...154. HRM process in the organization………………………….……….16

4.1 HRP and Forecasting………………………………….….…164.1.1 HRP process…………………………………..……..164.1.2 Forecasting HR requirements………………..……..184.1.3 Methods to forecast HR needs………………..…….19

5. Employee recruitment and selection………………………………..205.1 Sources of candidates………………..……………....19

5..1.1 Employment selection process in ABL......205.2 Training & Development…………………………………….21

5.2.1 Training Need Assessment…………………..…….....225.2.2 Employee Development………………..…………….22

5.3 Performance Management…………………………………...225.3.1 Performance standards and expectations…….…….225.3.2 How performance reports are written in ABL .……22

5.4 Employee compensation and Benefits………………………235.4.1 Types of compensation and benefits…………………23

5.5 Organizational career management………………….……..245.5.1 Employee Job Changes………………………………26

5.6 Job changes within the organization………………….……..265.6.1 Promotion……………………………………………..275.6.2 Transfer……………………………………………….275.6.3 Demotion ……………………………………………..285.6.4 Separations ……………………………………...……28

5.6.4.1 Layoff…………………………….……285.6.4.2 Termination……………………….......285.6.4.3 Resignation ……………………….......295.6.4.4 Retirement ……………………………29

6. SWOT Analysis of the organization…………………………………317. Recommendations …………………………………………..………..408. Conclusions ………………………………………………………...…439. References & Sources used………………………………………...…44

INTRODUCTION TO THE REPORT

I have studied 20 different business related courses in the MBA

program launched by the Peshawar. The utility of these courses is fruitless unless I

do practical work in any organization so as to coincide the theoretical ideas with the

practical implementation of these theories and ideas. This degree of MBA gets a

competitive strength with the practical work and experience in any renowned

organization especially in the commercial sector. As a manager I have to do practical

work and face diverse and unique challenges in future field after getting formal MBA

degree so this internship provides a key step to start for my practical experience.

OBJECTIVES OF STUDY

The practical work and experience leads to improvement of the inner

capabilities of any MBA student which are likely to be implemented in the

competitive business environment in near future. This 8 week practical work/

internship sharpens the inner capacities of an MBA student like me and is the first

step to introduction of any business environment after passing out of the university.

This internship provided me a training environment to sharpen

communicational, technical, financial and personal skills and also to apply the

theoretical concepts to practical environment.

To polish the hidden skills efficiently.

To analyze the different sections of ABL.

Through the efferent work taking and employment opportunity in ABL

2.HISTORY OF THE ALLIED BANK LIMITED

Allied Bank Limited (ABL) was the first bank to be established in

Pakistan. It started out in Lahore by the name Australasia Bank before independence

in 1942, was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank

Limited in 2005.

In August 2004, because of capital reconstruction, the Bank’s

ownership was transferred to a consortium comprising Ibrahim Leasing Limited and

Ibrahim Group.

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

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

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

largest network of over 780 online branches in Pakistan and offers various

technology-based products and services to its diverse clientele.

In order to extreme line the banking organization and techniques, it was

agreed that commercial interest of the time needed a bank with facilities of growth

and transfer, but that it should not be a bank run by a private individuals.

Banking in its modern form and structure starts in Britain when many of

Lombardy merchants came to England and settled in the part city of London now

called Lombard Street. They were so resourceful that even the king s had to depend

on them.

Allied Bank was the first Muslim bank to have been established in Pakistan.

Established in December 1942 as the Australasia Bank in Lahore with

a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir

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

months of business.

At the time, the Bank’s total assets amounted to Rs. 0.572 million.

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

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

WORK SCOPE

The internship period was of six weeks and this period was not sufficient for

collecting the data understanding and analyzing the large organization like ABL. Most

of the repot is result of primary data and least is based on the secondary data. doing

internship in ABL was a great experience in terms of learning how to work in

organization and how to meet different people in the organizational structure and also

observed what had learnt from the text books during the study period.

RESEARCH METHODOLOGY

The methodology for the collection of data is mostly based on primary data. ,i.e

observation as well as informal interviews and discussions with the staff of bank and

it least depend on secondary data sources that is print and electronic media like books

annual report of the bank.

Chapter2:

REVIEW OF ALLIED BANK

VISION

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

first choice of bank for all customers.

MISSION

• To provide value-added services to our customers

• To provide high-tech innovative solutions to meet customer requirements

• To create sustainable value through growth, efficiency and diversity for

all stakeholders

• To provide a challenging work environment, and reward dedicated team

members

• To play a proactive role in contributing towards the society

OBJECTIVES OF ABL:

Objective is the mean toward which an activity is aimed. all the activities of an

organization are due to its objectives and goals and it is for the attainment of

these objectives that various strategies, products and services are devised.

FUNCTIONS OF ABL

Like other commercial bank, Abl is engaged in performing Varity of functions to

achieves its objectives. Abl perform its functions in accordance with the banking

company’s ordinance basic functions of ABL are as follow

General account

Suspense Account

Commission

Account

For general public the branch deals in two accounts i.e.

Current Account

PLS Account

The branch also provides services to general public and other businesses like.

Deposits

Advances

Foreign Exchange

Compliances

Bills

ATM

Utility bills,

Traffic Chillan,

Locker’s Services

Submission of fee

etc of different

colleges.

HERIRACY OF ABL

BAORD OF DIRECTORS

REGIONAL GROUP HEADS

REGIONAL GENERAL MANAGER

REGIONAL CONTROLLER

BRANCH MANAGER

CUSTOMER SERVICE MANAGER

BANK OFFICER

CASHIER

BOARD OF DIRECTORS:

in the management of abl bank, the board of directors is at the top of the

controlling bodies, there is general meetings of the share holders and are some

elected directors, board members of abl are lead by the chairman .

REGIONAL GROUP HEADS

every region has regional chief usually an executive vice president ( evp)/senior

executive vice president (sevp),how over look all the operations of abl in

particular region .

REGIONAL GENERAL MANAGERS:

under the regional heads is the regional general manager how are either vice

president. the regional manager are responsible for a either a number of regional

areas and controller of various departments such as administration , recovery,

general inspections, and loans etc

REGIONAL CONTROLLER

Below the general managers are the regional controllers who are AVP. They are

directly reported to RGM and perform the duties of administration , loan approval

, general inspection etc

CHIEF/BRANCH MANAGER

In each region there are 20 to 30 branches which are managed by managers, who

are either AVP are officer .there are officers ,assistant/cashier employees in each

branch.

CUSTOMER SERVICE MANAGRER

There are several duties which branch CSM has to perform that includes opening

of an account,

BANK OFFICER

The duty of bank officer is to post the checque, advices and vouchers, in the

computer system and maintain manual register

CASHIER

The duty of cashier is to make and receive payments and maintain the different

books accordingly

Chapter3:

ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT

The Human Resource Management (HRM) department defines the

organizational structure and functional responsibilities of each group. It approves staff

strength, key appointments, salary revisions, bonuses and any special allowances. It

nominates the management personnel on the boards of other companies / subsidiaries.

The department also recommends amendments in Human Resources Policy to the

Board. Besides monitoring performance of Human Resources Group, the department

also oversees certain H.R. related management committees.

Chapter4:

HUMAN RESOURCE MANAGEMENT PROCESS IN AN ORGANIZATION

HUMAN RESOURCE PLANNING & FORECASTING

Human Resource Planning & Forecasting is a process of deciding

what positions the firm will have to fill and how to fill them.

HUMAN RESOURCE PLANNING

Human Resource Planning (HRP) is the process which analyses/

anticipates the organization’s Human Resource needs under changing conditions and

develop Human Resource Management activities/action plans to satisfy those needs.

Or

HRP is the process by which managers ensure that they have the right

number and kind of people in the right place and at the right time, which are capable

of effectively and efficiently performing assigned tasks.

There are certain tools and techniques for the effective implementation

of the Human Resource Management process in the organizations:

Human Resource Planning (HRP) must be integrated within the

organization’s strategic plans.

Senior management must emphasize the importance of HRP.

HRP must be based on the most accurate information available.

HRP must be assigned or located within a central unit.

A clear plan must be developed with associated time-spans and scope

of activity.

Job Analysis, Job Description & Job Specifications are the terms

which are widely used while the process of the Human Resource Planning. The

specific definitions of these terms are as under:

JOB ANALYSIS

Job Analysis is the process of obtaining information about jobs,

including the tasks to be done on the job as well as the personal characteristics

necessary to do the tasks. It is the assessment that defines jobs and the behaviors

necessary to perform them.

JOB DESCRIPTION

Job Description is a written summary of task requirements for a

particular job. Every type of job has a variable job description. In other words a job

description is the written statement of what a jobholder does, how it is done and why

it is done.

JOB SPECIFICATION

It is a list of minimum skills, knowledge and abilities (qualification &

experience) a person must have to fill a specific job. Every job has a unique job

specification. Or we may say that the job description is the statement of minimum

qualification that a person must possess to perform a given job successfully.

Human Resource Planning can be condensed into two steps:

Assessing current human resources, and

Assessing future human resource needs and developing a program to

meet those future needs.

HUMAN RESOURCE PLANNING IN ALLIED BANK LIMITED

In ABL the human resource planning is conducted by the ABL HR

Department which analyzes every job, then defines its description, and forecast its

specifications for future hiring and further process.

FORECASTING HUMAN RESOURCE REQUIREMENTS

The purpose of Human Resource Forecasting is to estimate labor

requirements at some future time period. Such forecasts are of two types:

The external and internal supply of labor.

The aggregate internal and external demand for labor.

Each type is considered separately because each rests on a different set

of assumptions and depends on a different set of variable.

FORECASTING EXTERNAL HUMAN RESOURCE SUPPLY

Forecasting and hiring new employees are essential activities for

virtually all firms, at least over the long run. The information about external supply of

human resources may be of greater importance for decision making while planning

for the human resources. This is basically to analyze the labor market and the supply

of competent and skillful labor/employees in the external market.

FORECASTING INTERNAL HUMAN RESOURCE SUPPLY

The starting point for projecting a firm’s future supply of labor is its

current/internal supply of labor within the organization. The simplest type of internal

supply forecast is the succession plan.

Succession plans may be developed for management employees, non-

managerial employees or both. The process of developing such a plan includes setting

a planning horizon, identifying replacement candidates for each key position,

assessing current performance and readiness for promotion, identifying career

development needs, and integrating the career goals of individuals with company

goals.

FORECASTING HUMAN RESOURCE DEMAND

In contrast to the supply forecasting, demand forecasting is beset with

multiple uncertainties – changes in technology, consumer attitudes and patterns of

buying behavior; local, national, and international economies; number, size and types

of contracts won or lost; and government regulations that might open new markets or

close off older ones.

METHODS TO FORECAST HUMAN RESOURCE NEEDS

In this section we will discuss the methods (qualitative and

quantitative) to assess/foresee/forecast the future human resource needs in the

organizations. Qualitative methods are behavior related methods to get information

about the future human resource needs. Quantitative needs are the ways of getting

information about the future human resource needs on quantity basis. It means to

actually forecast the human resources i.e. how many people are needed, where needed

and how to get them available to the places where required.

FORECASTING HUMAN RESOURCE NEEDS IN ABL

In the ABL the human resource needs are forecasted in many a ways.

The Bank devotes considerable resources in managing the risks to which it is exposed.

The momentum attained by this forecasting thus far will be continued in the future

through significant investments in human resources, technology and training.

The HR department through its database keeps all information

regarding its employees i.e. induction, retirement, qualification etc which often helps

in when data about employees is required for future needs.

Chapter5:

EMPLOYMENT SELECTION PROCESS IN ALLIED BANK LIMITED

ABL has remained active in its efforts to attract the best of the industry

talent by offering market based compensation and develop the skill set of existing

personnel.

During the last two years around 800 MTOs* in two separate batches

have been hired, while the hiring of another batch of around 250 MTOs* is in

process.

In the ABL the employment selection process: is as under

The first step towards employment selection process is to conduct

Human Resource Planning. It is basically a strategic analysis of the present

availability and future requirements of the candidates in the organization.

The process starts from inviting application from fresh MBA/M.Coms

from business schools of repute as Management Trainee Officers (MTOs). The

selection criterion is purely based on meritocracy with equal opportunity for all.

Under a specified time period the organization screens the applications

and rejects the unsuitable candidates. The candidates meeting the benchmark are short

listed and issued call letters for test.

The candidates passing a written test prepared by Institute of Bankers

are called for interviews.

The interview is usually conducted by the Selection Penal comprising

the top and middle level management who judges the suitability of the candidate for

the job. The committee has one Chairman assisted by 2-3 members and co-opted

members from different functional areas of the organization.

The person declared successful is then issued offer letter containing

terms and conditions for his employment. The candidate after accepting the terms and

conditions laid down in the offer letter join the organization and submits his joining

report.

There is a formal orientation program organized for the new comers

just as to give brief introduction about the organization and the employees therein to

the newly hired employees. This program leads to basic awareness of the environment

of the organization.

After orientation, newly hired employees are offered certain types of

work related training so as to acquaint them about the processes and procedures

adopted in the organization. Training follow up is also done through tests and

interviews of the employees imparted the training.

After successful completion of the training, he is placed and posted to

work in the functional area of the organization where his services are needed.

TRAINING IN ALLIED BANK LIMITED

A separate Human Resource Development (HRD) section is

formulated at the ABL. The HRD established The Management Development

Centers (MDCs), various training courses have been arranged in these MDCs where

around 5,000 employees participated as part of career planning and development

policy. The Bank has also nominated 1100 employees on various courses held within

Pakistan and 76 of employees were sent abroad to attend the courses and seminars

during 2009. The Bank, during the year 2009, has incurred Rs. 57.8 million on

training of employees as compared to Rs. 58.4 million spent in the previous year.

TRAINING NEED ASSESSMENT

In order to assess the training needs we have to identify and compare

two level of performance: the standard (desired, optimum, future, planned)

performance level (Ps) and the current or existing/real performance (Pc). The

difference between these two levels is the performance gap (Pg).

Allied Bank Limited boasts of having one of the best in class Human

Resource, consisting of youth and experience. The HR department assess the

performance of employees through their PER’s and then formulate different training

programs accordingly. This helps the Bank to own phenomenal growth and success

through its competent labor force whose exemplary work ethics, attitude towards

collective growth and sheer sense of belonging has made ABL one of the top five

banks in Pakistan.

EMPLOYEE DEVELOPMENT IN ALLIED BANK LIMITED

The concept of employee development in the ABL circulates around

on the job experience, self development, open and distance learning and the formal

education and training programs. All these methods and techniques are used in the

organization for the development of the employees. Most of the employees learn from

the experience which they get on the job while performing their functions and duties.

The existing employees are the major source of sharing the experiences and help the

new comers in the organization.

PERFORMANCE STANDARDS AND EXPECTATIONS IN ALLIED BANK

LIMITED

ABL Human Resource policy is based on a clearly defined

performance management system, career planning and development, meritocracy and

succession planning. The Bank devotes considerable resources in meeting the

performance standards which it set. The momentum attained thus far will be

continued in the future through significant investments in human resources,

technology and training.

ABL pursues the strategy of having a mixture of youth and experience

by investing in best of industry talent and inducting young talent. Competency based

recruitment coupled with market based compensation has enabled the bank to attract

the best of industry talent.

HOW PERFORMANCE REPORTS ARE WRITTEN IN ALLIED BANK

LIMITED

To promote employee engagement and satisfaction, a performance

evaluation system is in place in ABL whereby ‘pay to performance criteria’

inculcates the motivation amongst the employees to achieve the goals/targets set for

them.

In ABL performance is appraised on annual basis by documenting

Annual Appraising Report of each employee. The Branch Manager measures the

performance of each individual candidate and prepares a Performance Evaluation

Report (PER). Then these reports are sent to Regional Office which forwards it to

Head Office. Sufficient errors exist in the system of measuring the performance of the

candidates which ultimately affects the future service of the workers.

TYPES OF COMPENSATION & BENEFITS IN THE ALLIED BANK

LIMITED

There are two types of organizations i.e. one is public sector

organizations functioning under the administrative control of the Government of

Pakistan and the other one are called private sector organization, having their own

administrative control at the hands of the investor or the capitalists or entrepreneurs.

ABL is a private sector organization thus it is giving a handsome

compensation to its employees on the basis of their rank and seniority. The

compensation is divided in two main components.

Financial Compensation

Non Financial Compensation

The Financial Compensation or benefits include Base Pay, House Rent

Allowance, Utility Allowance, Medical Allowance etc. Employees are often rewarded

with Annual Bonus 2 times a year and an additional bonus for extra ordinary

performance is also awarded to any staff member. The proposal for bonus is

recommended by the Branch Manager and approved by the Regional Office.

The non-financial benefits (Benefits & Perquisites) admissible to the

employees working at the ABL vary in nature. These rewards can be Performance

Certificates, Shields, and Employee of the Month Award etc.

ORGANIZATIONAL CAREER MANAGEMENT

The term career has many meanings. In popular use, it can mean

advancement in someone sequence of jobs. Career is basically a sequence of positions

held by a person during his or her lifetime.

Career Development is also a way for organizations to attract and

retain highly talented people. Widespread organizational changes have led to

uncertainty about the concept of a traditional organizational career. Downsizing,

restructuring and other organizational adjustments have brought a significant

conclusion about career development. Employees must be prepared to do what is

necessary to advance career and take responsibility for designing, guiding and

developing their own career.

The idea of increased personal responsibility for one’s career has been

described as a boundary less career in which individuals rather than organizations

define career progression, organizational loyalty, important skills, and marketplace

value. The challenge for individuals is that there are no norms and few rules to guide

them in these new circumstances. Instead, individuals assume primary responsibility

for career planning, career goal setting, education and training.

One of the first career decisions one has to make is career choice. The

optimum career choice is one that offers the best match between what one want out of

life and interests, abilities and market opportunities. Good career choice outcomes

should result in a series of positions that give an opportunity to be a good performer,

make one want to maintain his/her commitment to career, lead to highly satisfactory

work, and give the proper balance between work and personal life.

Here are some suggestions for a successful management career:

Develop a network

Continue upgrading your skills

Consider lateral career moves

Stay mobile/Support your boss

Find a mentor/Don’t stay too long in your first job

Stay visible/Gain control of organizational resources

Learn the power structure

Present the right image

Do good work

Select your first job judiciously

The career is not something that should be left to chance; instead, in

the evolving world of work it should be shaped and managed more by the individual

than by the organization. Traditionally, career management and success have been

defined in terms of occupational advancement, which is clear and easy to measure.

knowledge with others.

Organizations should actively promote such relationships and provide

sufficient time for mentors and new hires to meet on a regularly scheduled basis. The

role of mentor is to provide a candid feedback to new comers on how they are being

perceived by others and to serve as a confidential sounding board for dealing with

work-related problems.

Challenging early careers/initial job assignments are an antidote to

career obsolescence. Employees should be encouraged to aim high because it lead to

higher performance. Parents, teachers, employers and friends should therefore, avoid

discouraging so-called impractical aspirations.

Another thing is mid career management of the employees in their

middle ages while they are on job to develop younger employees. The Mid-Career

employees keep themselves fresh, energetic and up to date while the younger

employees learn to see the big pictures and to profit from the experience of the older

employees.

Technically dismissals also fall into the last category. These are all the

movements or job changes within the organizations related with the workers or

employees working in the organizations. The career is the sequence of positions

occupied by a person during the course of a lifetime. These positions may be up,

down, over and out. These positions have a greater importance in the life span of the

individual employees due to the reason that the employees get compensation

depending upon the nature of job changes.

JOB CHANGES WITHIN THE ORGANIZATION

Not every incumbent/employee enjoys a similar position in any

organization. He has to deal with unique variations and challenges over his/her job at

his career. Some time these changes of jobs within the organization are very much

constructive to the employees and some time these changes are very much

discouraging for the employees.

From the organizational point of view, there are four broader types of

internal moves: up, down, over and out. These moves corresponds to promotion (up),

demotions (down), transfers and relocations (over) and layoffs, retirement and

resignations (out). Dismissals are sometime also fall into the last category.

All these methods of job changes apply in the ABL. People get

promotions, demotions, transfers and got dismissed/terminated depending upon the

situations in which they are performing their duties. These job changes are applicable

in every small or large organization where people are doing work. These methods are

as under.

Promotion

Demotion

Transfer

Dismissal

Separation

Layoff

Termination

Resignation

PROMOTION POLICY OF ALLIED BANK LIMITED

The promotion policy at ABL is pre defined. A promotion committee

is constituted which considers the employees fit for promotion. The promotion criteria

are based on three important aspects.

Seniority

Fitness

Performance

TRANSFER

In the ABL transfer decisions are usually internal in the different

sections and units within the organization. People/employees are not allowed to resist

the decisions of the management. Whatsoever the decision of the management is, the

employees have to accept it.

DEMOTION POLICY AT ALLIED BANK LIMITED

In the ABL demotion decisions taken by the management have many

kinds and shapes. Employees are not often demoted to the lower grades or positions.

The decision of demotion is very much against the will of the employees and they

oppose it badly. In the ABL decision of demotion is taken by a formally constituted

committee, who after analyzing each and every aspect take this important decision.

SEPARATIONS

Separations are the decisions taken by the management involving

employees moving out of the organization. Voluntary or involuntary permanent

withdrawal from an organization is called separation or turnover. A high separation or

turnover rate may result in increased recruitment, selection and training costs.

LAYOFF

Layoff is the temporary suspension or permanent termination

(involuntary) of employment of an employee or (more commonly) a group of

employees for business reasons, such as the decision that certain positions are no

longer necessary or a business slow-down or interruption in work. Originally the term

"layoff" referred exclusively to a temporary interruption in work, as when factory

work cyclically falls off. However, in recent times the term can also refer to the

permanent elimination of a position. Involuntary layoffs are never pleasant for the

employees.

TERMINATION

Termination of employment is the end of an employee's duration with

an employer. Depending on the case, the decision may be made by the employee, the

employer, or mutually agreed upon by both. Termination is a traumatic experience.

Termination may be due to disciplinary action taken by the management against the

employees not performing assigned tasks and functions.

RESIGNATION

Voluntary termination/turnover is a decision made by the employee to

leave the job. Such a decision is commonly known as "resignation," "quitting,"

"leaving “or” giving notice." Employees such as white collar and professional

workers resign often. Employees who resign should avoid burning their bridges

behind them, leaving anger and resentment in their wake; instead, they should leave

gracefully and responsibly, stressing the value of their experience in the company.

When an employee chooses to leave a position it is considered a

resignation, as opposed to termination, which occurs when the employee involuntarily

loses a job. Whether an employee resigned or was terminated is sometimes a topic of

dispute, because in many situations a terminated employee is eligible for severance

pay and/or unemployment benefits, whereas one who voluntarily resigns may not be

eligible. A resignation is a personal decision to exit a position, though outside

pressure exists in many cases.

SEPARATION POLICY AT ALLIED BANK LIMITED

In ABL if an employee is found involved in the any of the wrong

doings then a departmental enquiry is being launched against him/her. The accused is

served with a charge sheet then the enquiry is conducted. After that the enquiry

committee submits its report to the authorities and recommended action is then taken.

These actions can be any one like Demotion, Lay Off, and Termination etc. In case if

services of a person are terminated then he/she will not get any financial benefits.

RETIREMENT

Early retirements are a possible alternative to being laid off. Early

retirement programs take many forms, but typically they involve partial pay stretched

over several years, along with extended benefits. Early retirement programs are

intended to provide incentives to terminate; they are not intended to replace regular

retirement benefits.

Research indicates that both personal and situational factors affect

retirement decisions. Retirement is the point where a person stops employment

completely on attaining the pre-defined age of superannuation. Many people choose

to retire when they are eligible for private or public pension benefits, although some

are forced to retire when physical conditions don't allow the person to work any more

(by illness or accident).

RETIREMENT POLICY AT ALLIED BANK LIMITED

The compulsory retirement age for each employee in ABL is 60 years.

At retirement an employee gets financial rewards in the form of Pension, gratuity and

insurance etc.

Chapter6:

SWOT ANALYSIS OF THE ALLIED BANK LIMITED

SWOT analysis is a process to identify where organizations are strong

and where vulnerable, where it should defend and where to attack. It tells the

strengths, weaknesses, the opportunities which prevail in the market and the threats

which an organization may face from its competitors and other from other potential

factors.

This analysis can be performed on a product, on a service, a company

or even on an individual.

Here we apply this very useful technique to identify the strengths,

weaknesses, opportunities and threats of Allied Bank Limited.

A) STRENGTHS

Strengths mean the positive things that organization performs well

and the unique resources the organization has. Strengths relates to the internal

environment of the organization. Mainly the organization has four types of resources:

Human Resources

Informational Resources

Physical Resources

Financial Resources.

Human resources includes the technical and non-technical staff and

workers in the organization, Informational resources play a very vital role in

decision making process for the management, Physical resources means machines,

technology and other physical assets of the organization, Financial resources means

the finances occupied/carried by the organization in order to pay the staff and to run

the daily process of the organization. The strengths noticed by me during my stay at

ABL as an internee is as under:

Customer Satisfaction

The motto of ABL is to “deliver value to the people we serve” and

keeping in vies this motto the Bank aim is to provide a host of products and services

to its customers; establish a strong consumer banking business. To achieve this

objective, professionals from across the industry have been recruited into areas of

product development, sales, credit policy, research, consumer analytics, call centers

and service quality departments.

Brand Image

Brand image of ABL is recognized nationwide as provider of best

quality banking services to its customers. With Cash Deposit facility for immediate

credit to a remote branch, online banking, debit & credit card facility, easy fund

transfers etc the ABL has build its brand image that is a sign of quality.

Reach/Availability

With its existence of over 60 years, the Bank has built itself a

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

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

network of over 780 online branches in Pakistan and offers various technology-based

products and services to its diverse clientele.

Online Banking

Online Banking facilities are available to customers maintaining

accounts at all online branches across the country. It helps the speedy services giving

to the customers. There is also help in checking the balances and daily transactions

just at one key press.

The Bank also provides the facility of ATM to its customers.

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

Visa Debit Card for use at ATMs.

Strong Financial Position

It is evident from the financial statements of the bank, the financial

position of the bank is very sound and its profitability is in increasing. The Earning

per share is 10.02 m (ABL Annual Report 2009), which is a very positive sign.

Wide Area of Services

The bank provides a wide area of services. It offers number of services

relating to the banking system like Depositing Cash, Locker Availability, Utility Bills,

and Traffic Challan, Fees received of AIOU, Sales Tax, Withholding Tax, Property

Tax, and various loan schemes.

Human Resource Practices

The Bank has developed strong human resource practices. Each

employee has his/her own job description and he has to do according to the duties and

functions specified in that job description. Skilled and trained workers are available in

the organization. There is a formal orientation process for the new comers in the

organization. Employees use latest information technology in delivery of the services

to the end users. Better career planning is offered by ABL. HR cost increased by

25.1% to Rs. 5,660 million during 2009 as against Rs. 4,523 million during the

previous year.

Statement of Ethics and Business Practices

The Bank has adopted a “Statement of Ethics & Business Practices”,

which has been signed by all the directors and employees.

All employees of Allied Bank Limited are bound to conform to and

abide by the ABL’s rules and obey all lawful orders and directives, to conduct

themselves with the highest standards of ethics, professional integrity and dignity in

all dealings with the public, clients, investors, employees, and fellow bankers. Also

they have to maintain the privacy and confidentiality of all the information acquired

during the course of professional activities and refrain from disclosing the same

unless otherwise required by statutory authorities/law.

Professionalism

The Statement of Ethics & Business Practices compels every employee

to serve ABL honestly and faithfully. It also bounds the employees to not engage in

Money Laundering and is extremely vigilant in protecting ABL from being misused

by anyone to launder money by strictly complying with “Know Your Customer”

policies and procedures.

Business/Work Ethics

The statement of Ethics and Business Policy also states that employee

in ABL respect fellow colleagues and work as a team. They shall at all times be

courteous and not let any personal differences affect their work. They will treat every

customer of ABL with respect and courtesy. It also ensures that employees show good

attendance and punctuality. As a personal responsibility, every employee is to

safeguard both the tangible and intangible assets of ABL and its customers. The bank

has adopted a strict stance through the “statement of Ethics and Business Practices”

that its employee should not indulge in any kind of harassment including sexual

harassment or intimidation whether committed by or against any senior/junior, co-

worker, customer, vendor or visitor.

Employee’s Satisfaction

By adopting its “Statement of Ethics & Business practices” the ABL

has yielded good results. Its employees are very much loyal to the bank. Employee’s

turnover ratio is also very low in ABL. The organization provides better hiring and

medical facilities for the employees. Greater benefits and perquisites are provided to

the top level of management.

Organizational Environment

ABL provides better working environment and better working

conditions for the employees. Better Communication channels are adopted in the

Bank like telephone, faxes, e-mail and the internet. There is greater Quality of Work

Life in the organization.

Decision making at different level is done by a defined manner. There

is delegation of powers and decentralization of powers amongst the lower and middle

level of management. Employees of the ABL works in groups and teams, formal

groups are made in the Bank such as Finance Group, Information Group, MIS group,

Accounts Group, Administration group etc. Workers are more motivated and

committed towards duties assigned to them.

Employee Training & Development

Sufficient resources (financial and physical) are allocated for the

training of the employees. MDCs are established by the bank where around 5,000

employees participated in courses of career planning and development. The Bank has

also nominated 1,100 employees on various courses held within Pakistan and 76 of

employees were sent abroad to attend the courses and seminars during 2009. The

Bank, during the year 2009 has incurred Rs. 57.8million on training of employees.

B) WEAKNESSES

The weaknesses are the negative things in the internal environment of

the organization. It means that organization is lacking certain resources which it has to

have. The weaknesses of the ABL which I noted down during my stay there as

internee is as under:

Lack of Communication between Employees

During the internship in ABL I found the problem of lack of

communication between the employees and management. They lack understanding

with each other and not share the work of each other. More, the employees were

reluctant to share their knowledge with others.

Public Dealing

Due to lack of qualified public relation officers the public respect not

found in the bank. Sometimes employees not take good care of the customers and did

not perform their duties well.

Staff Shortage/ Over work Load on Employees

It was observed in the branch that as compared to huge business the

bank is dealing in, the number of employees is less and there is an increased workload

on the employees. Due to this the efficiency of the employees is reduced and they

became less motivated.

Technology

The bank performs most of its routine work manually. There is a need

of using modern communication devices. Computer based working must be adopted.

Also the bank needs other communication devices to improve its working.

HR Issues

There are certain HR issues that were also causing some problems e.g.

after the training there is no meaningful way to evaluate the effectiveness of the

training. A lot of complications/issues occur in the process of performance

management. Recruitment and Selection process take too much time. The process of

reprisal of grievances of the employees takes too much time adding insult to injury of

the employees.

Innovation

Another important weakness noted in the internship tenure is lack of

innovation. The bank requires constant innovation to attract more customers. This

innovation can be of the outlook, services provided, adopting better customer

satisfaction measures etc.

C) OPPORTUNITIES

Opportunities are the positive things in the external environment.

Mostly external environment is uncontrollable. Opportunities for the ABL are as

under:

Banking Sector's Growth Rate

Nowadays banking system is growing quickly so ABL have

opportunities to improve its standard more and get more share in the market. The

banking sector is contributing a lot in GDP of the country and ABL can utilize this

opportunity to upgrade its market.

Expansion of Economy

The economy of Pakistan is expending at a rapid pace. The economic

activities are increasing exclusively and banks are contributing more in expansion of

economic activities. Banks plays a huge role in trade and commerce by providing

different services to the business. ABL has great opportunity in satisfying its

customer wants with its wide area of services.

Legal Protection

The legal protection given by the government and the State Bank

provides for the bank to explore new area of market by launching new services to the

market.

Human Resource

There are greater opportunities for the organization to hire competent

workers through a widespread availability of the candidates in the market. The

organization is providing a creative and learning environment to the employees. There

is a lower turnover and layoff level because of the laws protecting the rights of the

employees.

Information Technology

Better and updated information and physical technology is available

which can change the working environment of the bank as well as well create the

brand image o

Mega Projects Financing

As the increase in overall business activity in the country, the investors

are launching various types of Mega Projects especially in housing and textile

industry. The bank has a great opportunity to finance these projects on very profitable

terms.

Huge Demand for Consumer Financing

The increase in per capita income and overall economy has resulted

into a great demand for the consumer financing especially for home finance and car

financing and it is said that this trend will increase more in future. The bank can earn

a lot by focusing on its consumer financing sections.

D) THREATS

Threats are the negative things in the external environment of the

organization. Threats are always incontrollable as they exist outside the environment

of the organization. The threats which I noted in the ABL are as under:

Expanding Corporate Culture

The expanding corporate culture is an ongoing threat for the smooth

existence of the ABL as the competitors attracting more and more committed and

skilled workers. The other related organizations are paying more benefits, perquisites

and incentives just to retain their employees.

Increase in Numbers of Banks

Increase in number of banks is a threat for ABL. A wide number of

banks (commercial and private) are operating their business and provide the same

facilities. Some international banks are also planning to launch their branches in

different areas of Pakistan which makes a threat for the ABL

Modern Banking Tools

Modern and computerized banking is required to fulfill the customer’s

need. Most of the employees are not effectively and efficiently using the modern

information technology tools like e-mail, internet, telephones, faxes, printers etc for

organizational benefit provided to them.

Technology

ABL have wide network of branches and almost all of its branches are

online. There if one commuter of one branch suffers a problem, all systems and

commuters will suffer.

Chapter7:

RECOMMENDATIONS

The following are the recommendations made for the ABL to

overcome its restraints.

Strategic Planning of the organization must be given adequate time and

expertise so as to create vision, mission, objectives and strategies in a very effective

and efficient manner.

Unfair influences and interferences in the recruitment and selection

process must be ignored and rejected.

Performance appraisal process must be ongoing and result oriented.

Need assessment for training purpose must be result oriented as the

whole structure of training process build on the basis of the assessment of needs at

different levels of the organization.

There must be proper ethical training for the raters.

Staff salaries, benefits, perquisites must be enhanced in accordance

with the inflation ratio.

The whole process of performance appraisal needs to be rationalized

and streamlined.

Grievances of the employees must be given proper attention and it

must be redressed on timely basis.

Information technologies provided to the organization must be used for

creative purposes; its negative use must be ceased.

Interviewing skills of the raters must be improved for getting

maximum results from the performance appraisal methods.

360 degree performance appraisal system must be introduced in the

organizations where still conventional system prevails.

Recreational and creative activities in the organization must be

improved and enhanced.

Recruitment process must be streamlined and got transparent so as to

attract and retain the competent and able candidates.

Rules and procedures must be got simplified and there must be

equality in them at every level of the organization.

There must be equal and justified distribution of the rewards and

compensation in the organization.

Equal employment opportunities must be offered to all irrespective of

the differences on the basis of gender and cultures.

Discrimination on gender basis must be discouraged.

There must be training for managers on handling of diverse nature of

workforce.

Effective and efficient service delivery must be adopted.

Redundancy of working procedures must be handled proactively.

There is a greater need for cooperation and coordination among people

at different levels of the organization.

Security situation of the employees must be given adequate attention.

Result oriented training must be imparted to the employees.

CONCLUSIONS

The essence behind formulation of this report and completion of eight

week practical internship in a competitive business organization is to get basic

practical experience in the organizations which ultimately help the MBA degree

holders to easily digest in the business organizations after completion of their MBA

degrees.

This report covers every aspect of the Human Resource Management

functions in any contemporary business environment. It includes theoretical

knowledge and practical experience about how to recruit and select a new candidate,

how to orient and train them, how his compensation will be fixed and how to retain

and motivate them by offering a handsome compensation package so that he can work

with greater devotion and motivation. This report also has information about how to

handle the diverse workforce in today businesses, how to have their effective career

planning and how the compensation is linked to the performance. As in the today’s

businesses compensation is directly related to the performance and work done by the

workers/employees. This report also have information how a manager handle a group

of people and workers in the form of a union. How a union members and workers

belonging to a particular union can be negotiated. How their demands are protected

and fulfilled. How a manager respond to a diverse situation of strikes/lockout after

failure of collective bargaining or dialogues between union and management.

This report also has greater information about the organization. Its

vision, mission, objectives, goals and targets, programs and projects initiated by the

organization, its staff strength, organizational structure, organizational structure of the

Human Resource Management department etc. Also the report shows that how human

resource management functions are being implemented in the organization.

Allied Bank Limited is an accomplished Organization and one can

plan to join it for his/her long-term career. Overall working environment is affluent.

Management of the bank cares a lot for its employees and considers them as an asset

for the bank. Behavior of the Senior Executives of the bank is very cultured and they

care about the individual’s career and its growth. But to keep the standards high, the

management is very keen about the performance and requires good moral and

professional attitude of its employees.

Employees at Allied Bank Limited, GT RoadBranch are efficient;

and often work more than their working hours willingly to cover the assigned duties.

It also shows their loyalty, commitment to the organization. All the customers are

entertained individually in the branch and same kind of behavior and attention is

given to all the customers.

Getting ideas for improvement from customer side is a new idea and

that is working very well in Allied Bank Limited. Prioritizing its product portfolio in

line with its corporate and consumer needs and wants the bank is committed to

develop products that give more value to its customers in both the sectors.

As far as learning is concerned; all the employees at the ABL GT

RoadBranch were cooperative. They helped me to understand the activities of bank

to the maximum possible extent. Their good attitude gave me more confidence to

learn more and to ask if I have any query in my mind. Despite their ever going

activities they never get irritant by my questioning. I had made an honest effort to

present the working & operation of Allied Bank Limited, GT RoadBranch

Peshawar in a simplest way.

I feel pleasure that I have really gained a lot during may 6 weeks of

internship and enjoyed working with experienced, cooperative & intelligent staff. The

exercise of formulation of this report will certainly be helpful in delivering practical

knowledge about basic human resource management functions to me and I will be

able to meet the challenges and issues which are going to be faced by me in the

practical life. This short term practical experience during internship will certainly be a

first step of courage and motivation to work in the competitive business environment.

REFERENCES AND SOURCES USED

Annual Report 2011 Bank Limited.

www.alliedbank.com

MANAGEMENT, Eighth Edition by Stephen Robbins & Mary

Coulter.

MANAGING HUMAN RESOURCES, Fifth Edition by Wayne F.

Cascio.

ORGANIZATIONAL BEHAVIOR, Twelfth Edition by Stephen P.

Robbins & Timothy A. Judge.

ANNEXES/ APPENDICES

Nil

54208721 Alied Bank Final Report

Documents

Transcript of 54208721 Alied Bank Final Report