Askari Commercial Bank Limited

8/7/2019 Askari Commercial Bank Limited

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Human Resource Management of Askari Commercial Bank Limited.

INTRODUCTION OF THE ORGANIZATION

Askari Commercial Bank Limited, ACBL was incorporated on

October 09, 1991 as a Public Limited Company and is listed on the

Karachi, Lahore and Islamabad Stock Exchange. It started its operations

from April 01, 1992. The bank was declared as Best Bank in Pakistan

in 2001 in Global Finance. The banks registered office/Head Office is

situated in AWT Plaza, The Mall, P.O.Box No. 1084, Rawalpindi

(Pakistan).

Mission Statement: -

The mission statement of the bank is

To be the leading private sector bank in Pakistan with an

international presence, delivering quality services through

innovative technology and effective resource management in a

modern and progressive organization culture of meritocracy,

maintaining high ethical and professional standards, while

providing enhanced value to all their stakeholders, and

contributing to society.

Askari Commercial Bank Limited was the first bank in Pakistan to offer

Internet banking Services and B2B e-commerce (Business to Business

electronic Commerce) solutions for merchants looking to purchase on

credit. They believe that balanced growth is the key to survive in the

todays global banking environment.

Hailey College of Banking & Finance, Punjab University, LHR. 1


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Corporate Information: -

Board of Directors: -

Lt. Gen. Faiz Jillani Chairman

Lt. Gen. (R) Masood Parwaiz Chairman Executive Committee

Mr. Kalim ul Rehman President & Chief executive

Brig. (R) Muhammad Shiraz Baig Director

Brig. (R) Asmat Ullah Khan Niazi Director

Brig. (R) Muhammad Safdar Ali Director

Brig. (R) Muhammad Bashir Baz Director

Mr. Javed Ahmed Noel Director

Mr. Zafar Alam Khan Sumbal Director/ Secretary

Mr. Shahid Hafeez Azmi Director

Mr. Muhammad Afzal Munif, FCA Director (NIT Nominee)

Audit Committee: -

Mr. Muhammad Afzal Munif, FCA Chairman

Mr. Javed Ahmed Noel Member

Brig. (R) Asmat Ullah Khan Niazi Member

Mr. Zafar Alam Khan Sumbal Secretary

Auditors: -

Taseer Hadi Khalid & Co.

Chartered Accountants

Legal Advisors: -

Rizvi, Isa, Afridi & Angell



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Registered Office: -

AWT Plaza, The Mall,

P.O. Box No. 1084,

Rawalpindi, Pakistan.

Tel: (92 51) 9272150-53

Fax: (92 51) 927 2455

E-Mail: [email protected]

Website: www.askaribank.com.pk

Registrar and Share Transfer Office: -

Askari Associates (private Limited,

6th Floor, AWT Plaza, The Mall,

P.O. Box No. 1084,

Rawalpindi, Pakistan.

Tel: (92 51) 9272442-44

Fax: (92 51) 927 2447

E-Mail: [email protected]

mailto:[email protected]://www.askaribank.com.pk/mailto:[email protected]:[email protected]://www.askaribank.com.pk/mailto:[email protected]


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Nature of Strategic Planning in ACBL: -

Askari Commercial Bank is trying to achieve Business Level

Competitive Strategy which will help them in strengthening the

businesss long term competitive position in the market place. The bank

is trying to become the bank of First Choice in the Region. The Bank is

using Human Resource as a strategic weapon which will help them in

achieving short term as well as long term objectives.

Importance of Human Resource Division of ACBL: -

Our staff is our most valuable asset

Strategically, the most important division at company is responsible for

Human Resource Management, including recruitment, selection, staff

training, job analysis, performance appraisal and job evaluation. The

division also handles matters relating to administration. It operates on a

future oriented strategy focusing on employees personal and professional

growth, keeping in minds their career and development paths. Staff is

given on the job as well as site training in diverse areas of banking andmanagement. Fifty two in house courses were organized during 2001 in

Askari Commercial Bank Limited for training the employees.

The HR manager says that we are committed to provide a

healthy environment, culture, job satisfaction, opportunity and

compensation that attracts and retains outstanding individuals. We strive

to build an organization where the best people want to work and to be the

first choice of where customers want to do their business.



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ACBL value a work place where:

People are promoted on their merit rather than on their tenure that

means ACBL gives priority to competence than to seniority, the

rewards for their performance within the context of what they can

personally control or influence in the course of their efficient job

performance.

People treat each other with mutual respect and dignity.

People truly feel that no matter how large we grow, each one of us

can make a difference.

No discrimination among the male and female employees.

Staff development activities are geared to enhance the capabilities for

applying the knowledge and facts towards development of practical

solutions. Under their Human Resource policy, they develop and boom

their managers and personnel for position of greater responsibility,

analytical, interpersonal, conceptual and specialized skills to enable them

understand the cause and effect relationship and to think logically.Moreover, the Banks Human Resource Division helps managers to

obtain, develop, utilize, evaluate, maintain and retain the right number of

people at right place and at a right time. It has to achieve organizational,

functional, societal and personnel objectives. It contributes to run the

organization effectively. Though the managers are responsible for the

performance of their employees, Human Resource Division helps

managers by assisting them in their human resource issues towards

accomplishment of organizational goals and objectives. It assists



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employees in achieving their personnel goals, as these goals enhance the

individuals contribution to the organization.

HR Heads Responsibilities;

As this division operates on future oriented strategy focusing on

employees personal and professional growth, Human Resource Division

at Head Office of the Bank is responsible for Human Resource

Management including recruitment, selection, staff training and proper

compensation plans and employees job evaluation.

Over the last to years, the Human Resource Division of Askari

Commercial Bank Limited was successful in implementing:1. Staff Hospitalization Plan;

2. Staff Transport Finance Scheme;

3. Executive Car Buy-back Option;

4. Surplus Vehicles Balloting for Staff;

5. Medical Leave of Absence Facility;

6. Privilege Leave of Absence Encashment;

7. Enhancement in Staff House Finance Limit;

8. Insurance of House Finance;

9. Increment in Salaries Up to 15%;

10. Rationalization of Pay Scales;

11. New Performance Appraisal System;

12. House Rent Facility.

The changing environment of ACBLs HRD:

As every thing is subject to change, so Askari Commercial Bank has to

create their work in response to the time in which they live and change



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their structure in response to the need to follow their customer overseas.

In order to be better faster and competitive, Askari Commercial Bank

Limited is always ready to adopt consistently changing environment.

Being a service organization, Askari Commercial Bank Limited has to

keep a track with the thing like globalizationand technological

advancement etc.

The Banks Managers say;

We enjoy a strategic competitive advantage over all domestic players by

virtue of our leadership in technological innovations. We have fully

automated transaction processing system for the back-office support. Ourbranch network is connected on-line real time and our customers have

access to off-site as well as on-site ATMs all over Pakistan. Our Phone

Banking service and Internet Banking Facility allows customers to enjoy

routine banking services from any where in the world, 365 days a year

and 24 hours a day. We have also pioneered e-commerce venture in

Pakistan through a major retail distributor.



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RECRUITMENT AND SELECTION

Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the

organization.

ROLE OF HRD IN RECRUITMENT PROCESS

HRD of Askari Commercial Bank Limited is responsible for

designing the selection system and managing its everyday operation.

Human resource mangers in cooperation with other managers

largely set the overall strategy, they are likely to be influential in

deciding, e.g, whether the department should focus on choosing

people who are best qualified for current vacancies of for those who

have the greatest long term potential. The personnel managers also

decide how the guidelines for equal employment opportunities met

and whether the bank needs outside legal assistance in formulating

its affirmative action plan.

JOINING THE BANK

On joining the bank the following formalities must be

completed:

a) The documents listed below shall be forwarded immediately

to Human Resource Division for completion of their record.

i) Duplicate copy of appointment letter duly signed by the

employee in acceptance of the terms and conditions embodied

therein.



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ii) Four copies of recent passport size photograph.

iii) Photocopies of all academic certificate especially metric

certificate.

iv) Photocopies of testimonials from previous employers.

v) Fitness certificate as per Clause (4) of the letter of

appointment.

vi) Photocopy of National Identity Card.

vii) Clearance letter from previous employer.

RECRUITMENT PROCESS

Recruitment of employees, in general the sources of

recruitment can be classified into two types.

i) Internal Job Posting:

Filling a job opening from within the firm has the advantages

of stimulating preparation for possible transfer, or promotion and

increasing the general level of morale.

Self Nomination:

Human Resource office publishes a monthly newsletter that

list the Askari Commercial Bank Limited's job posting program to

different routes to nomination for a job, self nomination and

nomination by an employee supervisor.

Positions available the announcements carry information

about the nature of the position and the qualification needed, and

any employee whose interested bid on the job that is enter the

competition for it.



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If accepted for the posted job, the former supervisor is allotted

approximately a month to provide for a successor. The personnel

units act as a clearing house in screening bids that are unrealistic,

preventing an extensive number of bids by a single employee and

cancelling employees who are constantly unsuccessful in their

attempts to change job.

Nomination by Employees Supervisor:

Informal communications among managers lead to the

discourage that best candidates for a job is already working in a

different section of the firm.

In 4 years of its merger 3000 opening were advertised posted

of which approximately 68% were filled. 32% of the opening were

cancelled. One reach for can effation is that supervisions with

vacancies often post jobs and interviews can ideates, and then when

they are not satisfied with the qualify of the candidates, they

disquality all nominees and ask management for permission to

recruit from outside.

Despite some minor problems, most employees were pleased

that an internal job posting program was established. Most

successful nominees were happy with their new assignments and

unsuccessful nominees identified needed skills and gained a more

realistic idea of additional training or experience required for careers

alternatives.

ii) External Job Posting:



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Askari Commercial Bank Limited also go to external sources

for positions whose specification can not beam by present personnel.

Askari Commercial Bank Limited uses following outside sources.

1) Advertising:

Advertisement are placed in various newspapers. More

information about the bank, and job specification are included in the

ad to present some self-screening.

2) Employment Agencies:

Additional screening is affected through the utilization of

private employment agencies.

This Horizon agency has specialized in various types of staff

and job e.g. sales office, execution or engineer.

3) Casual Applications

Unsolicited applications both at the gate and through the mail

constitute a much used source of personnel. These has been

developed through promission of attractive employment office

facilities and prompt and continuous replies to unsatisfied letters.

4) Leasing

To adjust short term function in personnel needs. The

possibility of leasing by the hour or day is considered. Askari

Commercial Bank Limited not only obtains well trained and

selective personnel but avoids any obligation in pension, and other

fringe benefits.

THE HIRING PROCEDURE



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In the hirings procedure, Askari Commercial Bank Limited are

following steps to discover significant information about an

applicant.

1. Call for application

2. Preliminary interview

3. Applications blank

4. Check of References

5. Psychological lest

6. Employment interview

7. Approval by the supervisor

8. Physical examinations

9. Induction or orientation

1) Call For Application

First of all, an ad is given in the newspaper for the vacancy.

2) Preliminary Interview:

In this step, the more obvious facts and impressions are of the

type generally obtained in an initial interview. Appearance and

facility in appear are quickly evaluated. Applicants are often asked

why they are applying for a job with Askari Commercial Bank

Limited. An idea of education and experience is obtained by asking

for the last grade finished in school and the names of jobs previously

land.

3) Application Blank:



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The application form is a sheet or small, booklet with blanks

to be filled in by the applicants. Its purpose is to supply organization

with basic information about the candidate's back ground: education

work experience, previous salary, and so forth.

In Askari Commercial Bank Limited factual information are to

be obtained by means of an application blank.

Weighted application form is established and used with

caution. It is used for two prime objectives.

i) Askari Commercial Bank Limited has established the selection

of more stable employees to decrease labor turnover. They

have discovered and utilized the particular data that devote

stability facts relating to home ownership, marital status, age

and sex.

ii) Askari Commercial Bank Limited has also established job

proficiency as the major objective and have correlated

biographical items with production records.

The application blank is continuously updated. The entire

blank is restudied and reweighted every 3 years at the minimum.

4) Check of References:

The purposes of the reference check are to obtain information

about past behavior of applicants and to verify the accuracy of

information given not he application blank. Askari Commercial



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Bank Limited uses combination of letters and telephone calls, as a

method of checking.

Reference includes only

1) Dates of employment

2) Job title

3) Absentee record

4) Promotions and demotions

5) Compensation

6) Stated reason for termination.

Are Askari Commercial Bank makes sure that privacy is

protected.

5) Psychological Test:

In Askari Commercial Bank, clericals jobs are subjected to the

greatest amount of testing, applicants for unskilled hourly jobs are

tested least. The factors measured are usually of the psychological

type, such as ability to reason, capacity for learning, temperament

and specific aptitude.

Types Of Psychological Tests:

Following types of tests are being used in Askari Commercial

Bank to identify talents.

i) Intelligence test:



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These tests concentrate on a person's abilities with worlds

numbers logical reasoning and spatial relationships. This type of test

is used for managerial posts.

ii) Mechanical Aptitude test:

Askari Commercial Bank uses mechanical aptitude tests.

Inventions are asked which fall into the general area of

understanding area of under standing mechanical relationships.

Some question's relate to knowledge of tools and equipment. This

type of test is suitable for technical posts.

iii) Clerical Aptitude Test:

This test deal with questions concerning office vocabulary,

automatic, selling and detail checking. This type of test is used for

clerical posts, such as computer operator.

iv) Interest Test:

Askari Commercial Bank realizes that a person who is

interested in a job or task will do much better than one who is

uninterested. The applicant is asked whether he likes, dislikes or is

indifferent to many examples of school subjects, occupations,

amusement, peculiarities of people and particular of activities.

6) Employment Interview:

Interviewing is probably the most widely used single method

of selection.

Askari Commercial Bank shapes interviewer behavior is to

establish a specific system for conducting the employment



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interview. Askari Commercial Bank considers following things to

set up such a system.

1) To know what to look for in applicant focus only those know

ledges, skills, abilities and other characteristics (KSAOS)

necessary for the job.

2) Develop interview questions that are strictly based on the job

analysis results, use "open-ended" questions and use questions

relevant to the individual's ability to perform, motivation to do

a good job.

3) Conduct the interview in a relaxed physical setting. Begin by

putting the applicant at ease with simple questions and general

information about the organization and the position being

filled.

4) To evaluate applicants, develop a form containing a list of

KSAOs weighted for overall importance to the job.

7) Approval by the Supervisor

After the employment interview the immediate supervisor

approves the candidates. The candidate's recruitment is confirmed

after probationary period.

8) Physical Examination:



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The physical examination step found in most business.

Physical examination includes matching of an applicant's physical

capabilities to job requirements to a simple check of general

physical appearance and well being.

In having the physical examination procedure Askari

Commercial Bank has at least three basic objectives.

1) First, it serves to ascertain the applicant physical capabilities

e.g. can the applicant work standing up.

2) The second objective of examination is to protect the bank

against unwarranted claims under Staff's Compensation Laws

or against lawsuits for damages. If a record of a new

employees physical condition at the time of entry does not

exit, a claim could possibly be filed for injuries greater than

were incurred after starting to work.

3) Third objective of physical examination is to prevent

communicable diseases from entering the organization.



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TRAINING AND DEVELOPMENT

ORIENTING AND TRAINING OF EMPLOYEES

Once employees are "on board" their personal growth and

development overtime become a major concern. Change is a fact of

a organizational life and to cope effectively with it.

In Askari Commercial Bank both human resource directors

and other managers play an critical role in the development of

orientation programs. Human resource directors have assumed

leadership in developing such programs.

ORIENTATION OF NEW EMPLOYEES

After the selection of successful employees the first step in

their introduction to bank policies, practices and benefits is an

orientation program.

The Orientation program in Askari Commercial Bank is

completed in three phases.

The first phase is usually conducted by the staff personnel

unit. Subjects covered include products of the bank, employee

benefits, salary schedules, safety, probationary period, timed

recording and absence, holidays equal employment opportunity

programs, packing and the grievance procedure.

The second phase of most organized induction program is

performed by the immediate supervisor. The inductee is introduced

to fellow employees, given a tour of the department, and informed

about such details as locker and rest rooms, supply procedures,



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hours of work overtime, call in procedures, rest and lunch periods,

and lunching facilities.

The complete in action program will provide for phase three

follow up some week later.The interview, conducted by either the

supervisor or a personnel specialist is concerned with

1) Employee satisfaction with the job and organization.

2) Supervisor satisfaction with the employees.

Dissatisfactions may be cleared up by explanations or actual

transfers to a different job. In any event, the interest in the employee

evidenced by the more act of having a follow-up interview will help

to increase the leveral of employee satisfaction.

After the employee has been received, selected and inducted,

he or she must next be developed to better fit the job and the

organization. No one is a perfect fit at the time of hiring, and some

training and education must take place.

Askari Commercial Bank is a multinational organization in

which importance has been given to training. The management

consider the training as an "Investment in their Asset". They

believed that planed development programs will returns values to

the organization interms of increased. Productivity, high reined

morale, reduced costs and greater organizational stability and

flexibility to adapt to changing external requirements.



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Askari Commercial Bank management as whose is initially

interested in training and educational programs in order to promote

employment and utilize the talents of its citizens.

TRAINING NEEDS ASSESSMENTS:

In Askari Commercial Bank there are three level of analysis

for determining the needs training can fulfill.

1. Organization analysis:

Focuses on identifying where within the organization training

is needed.

2. Operation analysis:

Attempts to identify the content of training - what an

employee must do to perform competently.

3. Individual Analysis:

Determines how well each employee is performing the task

that make up his or her job.

At this level, training needs may be defined in terms of a

simple equation.

Desired performance - Actual Performance = Training need.

OPERATIVE TRAINING:

The development of operative calls for specific increased in

skills and knowledge to perform a particular job. In Askari

Commercial Bank there are primarily two basic methods in use.

1) On The Job Training:



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Since most jobs in Askari Commercial Bank can be learned in

a relatively short period of time, this method is most widely used. It

has the advantage of strongly motivating the trainee to learn since it

is not located in the artificial situation of a classroom. The fact that

the success of the system depends almost entirely upon the

immediate supervisor, the trainer, means that the personnel unit has

a major responsibility for making a good, effective reaches out of

every supervisor.

The types of on the job training implemented in Askari

Commercial Bank are:

Apprenticeship programme which include both class room

instructions as well as on the job training. This type of training is

given to the new inductees and usually two years long.

2) Off the Job Training

There are following methods used in Askari Commercial Bank

for Off the Job training.

i) Staff Training Program:

ii) Special Courses:

iii) Selling and Technical skills training program:

iv) Opportunities For Improvement Of Educational And

Technical Qualification:

EVALUATING TRAINING PROGRAMS



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Training must be evaluated by systematically documenting the

outcome of the training in terms of how trainees actually behave

back on their job and the relevance of the trainees behavior to the

objectives of the organization.

To assess the utility or value of training, in Askari

Commercial Bank management seek ensures to four questions.

1. Did change occur,

2. Is the change due to training,

3. Is the change positively related to the achievement of

organizational goals;

4. Will similar change occur with new participants in the same

training programs.

In evaluating training programs, measures of change fall into

four categories.

Reaction:

How do participants feel about the training program?

Learning:

To what extent have trainees learned what was taught.

Behavior:

What on the job changes in behavior occur because of

attendance at the training program?

Results:



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Is what extent have cost related behaviour outcomes or quality

improvement, turn over or accident reduction (productivity)

resulted from the training.



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EMPLOYEES SERVICES SAFETY, HEALTH & WELFARE

For the purpose of attracting a productive human resource and

ensuring his positive contribution to the organization's success over

an extended period of time, the companies offer a variety of

facilities, benefits and welfare programs to its personnel.

Likewise, Management at Askari Commercial Bank, in

addition to giving basic pay to its employees, also cares for many

employer benefit schemes and programs some of which are the

distinction of large corporations only. Here are important mentions

in this respect.

Askari Commercial Bank adheres to all laws and regulations

of government. For instance, Askari Commercial Bank follows

Minimum Wage Board Act, Industrial Relations Standing

Ordinance, Workman Compensation Act.

Askari Commercial Bank has developed ten grades for rank

and file staff and have structured Pay Scale according to labour

market and competition within the hospitality industry of Pakistan.

The compensation for executive and secretaries is negotiable

depending on the abilities and performances.

The main objectives sought through effective compensation

management at Askari Commercial Bank are:

* Compensation needs to be high enough to attract applicants.

* Retain present employees.



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* Compensation management strives for internal and external

equity.

* Comply with legal regulations imposed by government.

HEALTH AND SAFETY

A monthly health and safety meeting held at Askari

Commercial Bank. Chief Manager presides this meeting and discuss

any accident if happen in preceding month.

Measures in future to avoid these type of accidents.

Working hours = 48 hours per week.

Sick leave = 8 days

Casual leave = 10 days

FEATURES OF COMPENSATION SYSTEM AND SOCIAL

SERVICES

* Fixed salary

* Overtime is paid according to Government rules and

regulations i.e. double on Gazetted holidays.

* Group Insurance scheme is practiced for the compensation of

two objectives:

i) Accidents

ii) Injuries

* Employees old age benefit scheme.

* Gratuity scheme.

* Bonus is awarded (Minimum one bonus in a year)

* Monthly Medical Allowance



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* Social Security services are obtained for employees.



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MANPOWER PLANNING

In Askari Commercial Bank basic purpose for which HRD in

relation to HRP serves are as under:

1. Balancing the cost between utilization of plant &

manpower:

This theme involves comparing costs of these two resources

in different combinations and selecting the optimum.

2. Determining recruitment needs:

It is an essential prerequisite to the process of recruitment. It

means that HRD unexpected shortages, wastage, blockages of

unexpected shortages, wastage, blockages in promotion flow and

needless redundancies.

3. Determining training needs:

HRD plans fundamental training programmes for which it is

necessary to assess not only quantity but also quality in terms of the

skills required by Askari Commercial Bank.

4. Management Development:

HRD provides succession of trained and experienced manager

which is essential to the effectiveness of the organization and this

depends on accurate information about present and future

requirements in all management level in Askari Commercial Bank.

5. Industrial Relation:

In Askari Commercial Bank plan are made on the assumption

about productivity and the human resource implications of mergers,



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acquisition and divestment decisions that have an impact on Askari

Commercial Bank's industrial relations.

A system of HRP in Askari Commercial Bank:

A system of HRP in Askari Commercial Bank has some

specific points on which Banking Act.

1. Defining or redefining organizational objectives.

2. Determining and implementing the basic requirement to sound

planning.

3. Assessing future requirements to meet objectives.

4. Assessing current resources and availability of resources in the

future.

5. Producing and implementing the plan in detail i.e balancing

the forecast for demand and supply related to short term and

long term time.

6. Monitoring system and amending as indicated.

EVALUATION OF HRD PERFORMANCE

HRD of Askari Commercial Bank is working very well. Such

as planning, managing people, resulting people, its objectives and its

mission, guiding principle are very good and helping in overall

organization.

Managers of HRD are expected to organize and to be

accountable for the work of other people. In this process, managers

act as employers as such they create and sustain the employment

relationships of their organizations. The occupation of HRM



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specializes in technical skills of managing this employment

relationship. In the Askari Commercial Bank specialist management

has engaged. After we have seen how different models of personnel

management have developed, and it shall explore the

interdependence between activities which make up the personnel

function of managements by looking at how these activities

interlock as a "System in form of HRD".

REASONS FOR HUMAN RESOURCE PLANNING

The formal personnel planning is essential for"System in form

of HRD" because it is moderate to large in size, that experiences

changes in technology, products, markets and utilizes a lot of high

talent personnel. Following are specific reasons for which Askari

Commercial Bank management is carrying on systematic human

resource planning.

1) Future Personnel Needs:

2) Coping with Change:

3) High-Talent Personnel:

4) Strategic Planning:

5) Equal Employment Opportunity:

6) Foundation for Personnel Functions:

THE PLANNING PROCESS:

Planning for human resources is tied in with overall Askari

Commercial Bank long range planning. The process of planning in

itself forces management to think through objectives of firm and



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people problem relating to achieving those objectives through

planning.

1) GOALS AND PLANS OF ORGANIZATION:

Human resource planning is a part of overall strategic

planning for Askari Commercial Bank. A personnel vice-president

and his staff cannot make useful plans for period of one or three or

five years, unless they have data on possible corporate expansions

new products, new plants, new markets and so on. Important steps

involved in overall planning for Askari Commercial Bank are:

1. To analyze and evaluate environmental influence.

a) Political trends and legislation which will have impact

upon the business.

b) Economic conditions such as competition inflation, rate

of change in gross national product and unemployment

level.

c) Social trends in leisure time, consumer tastes, work

values and retirement.

d) Technological advances affecting enterprise.

2. To identify the values and aspirations of Askari Commercial

Bank's directors and executive.

3. To identify and evaluate the internal strengths and weaknesses

of the enterprise.



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4. To develop a strategy which relates the strength of the bank

and aspirations of executives with opportunities perceived in

environment.

5. To create specific enterprise objectives and plans for

achieving these objectives.

6. To prepare plans for the functional areas of the business;

production, finance, marketing, research and development and

personnel.

7. To communicate with members of the organization and

involve them in planning process.

8. To evaluate progress toward implementation of plans and take

corrective action where necessary.

PLANNING PERIOD:

The extent and rapidity of change in the forces affecting the

business determines the utility of forecasts into the future. Askari

Commercial Bank's planning period is from 3 years to 5 years.

Period for three year is short range and of five years is long range

period.

2) CURRENT HUMAN RESOURCE SITUATION:

The second phase of the planning process for Askari

Commercial Bank is the preparation of an inventory of personnel

presently within the organization. This is also called a skills

inventory or manpower information system. A skill inventory



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consists of up-to date information regarding the qualifications of the

selected categories of personnel. The skills inventory has several

important uses.

1) After preparing human resource forecast, Askari Commercial

Bank compare, the number, types and skills specified by

forecast with the present baseline or current position given by

skill inventories to as ascertain what skills must be developed

from present personnel via training, up grading and special

development efforts.

2. Other use is to identify talent within the organization for

specific job opening.

3. An up to date skill inventory is valuable for the preparation of

rosters of qualified technical and managerial personnel.

4. An inventory can be used in conjunction with an affirmative

action programme to monitor progress toward meeting

employment goals.

5. And finally the existence of a skills inventory enhance the

opportunities for employees to satisfy their career through

development and promotion.

Skill inventory contain many information but some of them

are as

- Personnel data

- Education

- Employment History



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- Performance and potential

- Career goals.

COMPUTERIZED SYSTEM:

Askari Commercial Bank along with manually prepared

Human Resource Data card also use computerized system to handle

data. The computer can readily provide a printout of the age

distribution of all mangers by level, job, and department.



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SALARY ADMINISTRATION

* All confirmed employees are allowed annual increments in the

month of July.

* All normal increments are granted to employees who have

completed one year with the bank. If service is less than one

year then increment is granted in proportion of the length of

service during the year.

* Full normal increment is equal to the time scale of the grade in

which the concerned employee is placed.

* An employee can only be promoted when there is a vacancy in

the higher cadre of the organizational chart or position in

which he is working is being upgraded.

* Merit shall be the only criteria for promotions. Seniority will

be taken into consideration only when every thing else is

equal.

* Promotion shall normally be considered at the time of granting

the increments i.e. 1st of July. In case of an opening that needs

to be filled immediately; the head of department shall initiate

the case to P & A.

* Up to supervisory level employees, General Manager

concerned and General Manager (P&A) shall decide.

* In order to give importance to the event, the employee

concerned shall also be interviewed.



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* For promotion of officer cadre and above, on the receipt of

case, General Manager (P&A) shall arrange a meeting of

Management Committee where the candidate may be

interviewed.



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INDUSTRIAL RELATION

The reality of most organizations is that people hold a

multiplicity of personal objectives. There would seem to be some

truth in the claim that employees really work for material and

psychological satisfaction. They can achieve and that their work is

therefore an instrument used toward their own needs.

DIFFERENT TYPES OF DISPUTES IN ORGANIZATION

There are some signs of disaffection with organization such as

strikes, confrontation leading to lockouts and various forms of

withdrawal of cooperation by staff in furthermore of their claims.

And other conflicts such as poor training, turnover, absenteeism. But

management tries to solve all disputes and conflicts. But the typical

conflicts which are taking place in the organization are overtime

bans, working to rules, refusal to use new machinery have all seen in

different sectors of Askari Commercial Bank.

To solve all disputes Askari Commercial Bank, management

take action which are very right and then all the employees are

happy ad are more committed to their work.

ROLE OF HRD IN SOLVING PROBLEMS

Different conflict resolution starts with a careful diagnosis of

the causes of the problem. And all the times HRD plays an

important role in solving there problems. It is then the responsibility

of the manager of HRD to apply an appropriate procedural,



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structural or personal solution or some combination of all three. But

the manager of Askari Commercial Bank has a greatest assets in

resolving conflicts will be his or her own preparedness to adopt a

pluralist stance, and the interpersonal skills which he or she can

bring to bear supplemented by -- honesty and pragmatism. But HRD

performs following chief roles.

* Supportive behaviour on manager's part.

* A work group problem solving.

* To design job techniques in such a way that gives satisfaction

for individual and opportunity for improving performance.

* To overcome lack of commitment to work.



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SYSTEMS OF COMMUNICATION

1. Open Door Policy: Askari Commercial Bank manager's door

is always open to employees. It provides continuous invitation

for employees to come in and talk about everything that is

troubling them.

2. Effective communication: In Askari Commercial Bank can be

judged with.

Informal discussion

Meeting with manager

Formal meeting



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TERMS & CONDITIONS OF EMPLOYMENT

The term `employee' as use in the rules, regulations and

benefit plans enumerated covers all non-unionised employees i.e.

Junior Officer upto Managing Director

The bank reserves the right in its discretion to modify, alter or

discontinue any rule, regulation or plan.

These rules, regulations and plans further clarify the

conditions laid down in the employment letter and cannot be

interpreted contrary to or outside the scope of the specific the terms

of the employment letter signed and accepted by the employer.

ALLOCATION OF PERSONAL NUMBER & ISSUANCE OF

BANK IDENTITY CARD

The bank will allocate a Personal Number to all new

employees on joining. This number is to be quoted in all future

correspondence for all purposes from then onwards.

The bank will also issue a bank Identity Card to the employee.

If the card is lost the matter should be reported to Human Resource

Division immediately and a duplicate will be issued. The cost of

replacing the card shall be deducted from the salary of the concerned

employee the following month.

PROBATIONARY PERIOD

The period of probation is six months which may be extended

at the description of the management.



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During this period, the employee will not be entitled to avail any

leave, benefits of the medical scheme, coverage under Group

insurance Policy and member ship of the Provident and Gratuity

Funds except coverage under the Accident Insurance Policy.

During probation an employee's services are liable to

termination without notice or any payment in lieu thereof. This term

shall apply to either side.

DUTIES AND OBLIGATIONS

Every employee is required to discharge his duties and

obligations honestly and diligently, and to observe strict secrecy

concerning remuneration, performance rating, increments or other

terms of service and/or business affairs of the bank whether in

relation to other employees, companies, firms, institutions or third

parties engaged in business with the bank. The bank has discretion

with regard to the duties to be performed by an employee in keeping

with the terms of his appointment.

An employee shall devote the whole of his time to the

business of the bank and not be engaged, interested or concerned

with any other business or commercial activity of any kind

whatsoever, whether directly or indirectly without the prior written

consent of the bank, nor to publish any book, brochure or pamphlet

or to contribute any article/communicate to any newspaper or other

publication whatsoever whether for remuneration or otherwise.

COMPENSATION AND BENEFITS



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On the successful completion of the probationary period an

employee's services will be confirmed in writing and then an

employee will be entitled to avail benefits of:

> Medical scheme

> Leave Entitlements

> Coverage under Group Life Insurance

> Membership of Provident Fund

> Gratuity Fund

> Pension Fund (Wherever Applicable)

As specified under each benefit plan.

SALARIES, INCREMENTS AND PROMOTIONS

Salaries are disbursed to all employees on the 26th of the

month or, if a holiday, the next working day.

Salaries are remitted directly to the Bank Account and it is therefore

necessary that details of Name, Account Number, Branch and Place

should be intimated to H.R.D/S.P.C. on joining or if any change

occurs.

No advance against salary is given by the Management.

TRANSFERS

The Headquarters of all employees as mentioned in the letter

of appointment is subject to change at the discretion of the

Management in which event an employee will be required to work

anywhere in Pakistan as Headquarters with no extra remuneration

and /or allowance or compensation whatsoever in the salary



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structure. In case of a transfer, an employee will be entitled to the

following transfer benefits:

I) Air-conditioned Coach train fare or air passage as per

entitlement for himself and his immediate family to the place

of transfer.

II) 14 days upcountry allowance (Boarding & Lodging

allowance) as per entitlement in the travelling scheme.

For single employees, reimbursement is at a flat rate. The

amount allowed will be specified in the transfer letter served by the

Management.

In cases where the Management has initiated the move, it can

at its discretion, allow a higher ceiling/additional benefits.

LEAVE: ENTITLEMENTS & RULES

CONFIRMED EMPLOYEES

All confirmed employees are entitled to leave according to the

rules and regulations stated below:

i. CASUAL LEAVE

Ten days with pay in a calendar year, at the discretion of the

Management.

Casual leave in meant to meet urgent and/or unforeseen

circumstances. Prior approval of the Management has to be obtained

whenever possible, stating the reason for leave. In case of

emergencies, an application in support of availed leave must be

submitted the day the employee resumes duty.



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a) Casual leave may be allowed to be availed at one time for a

maximum of 3 days and shall not normally be combined with

any other leave, holidays and /or public holidays. In case of

natural calamities or absolute emergencies or of serious illness

or death in the family or of a close relative, special sanction

for combining of leave may be given by the Management.

b) Causal leave shall not be accumulated and carried forward

beyond a calendar year.

c) Casual leave may be allowed in continuation of Sick Leave in

cases where sick leave in exhausted and further leave is

recommended by the Doctor.

ii. SICK LEAVE

The entitlement is 14 calendar days in a year. Sick leave if not

availed during a calendar year may be carried forward but the total

accumulation of Sick leave shall not exceed 28 days at any time.

a) Any application for sick Leave which exceeds 3 days should

be supported by a medical certificate from a registered

practitioner.

b) The management may at its discretion have any employee

examined by the bank Doctor and the advice of the Doctor

shall be final, for the purpose of granting leave to the

employee.



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c) If sick Leave is availed on Thursday and also on the following

Sunday, such leave will be counted for four days and a

medical Certificate should accompany the leave application.

d) In case of prolonged illness, where the required leave exceeds

the entitlement, the adjustment of leave beyond entitlement

may be made against C/L or P/L, or be granted as a special

sick Leave at the discretion of the Management.

iii. PRIVILEGE LEAVE

The P/L entitlement for all employee is as follow:

For the 1st completed year of service 3 weeks (21 Calendar days).

For 2nd to 5th completed year of service or part thereof 4

weeks (28 Calendar days).

For 6th year onwards- 5 weeks (35 Calendar days)

a) An application for P/L shall be submitted to the Human

Resource Division duly recommended by the concerned

Superior, a minimum of 14 days before commencement of

leave.

b) A minimum of 2 weeks P/L pertaining to one year has to be

availed in order to receive Leave fare Assistance for the year.

According to the profit of the bank, a maximum of 1 month's

basic salary could be allowed as LFA subject to approval by

the Management. However, as minimum LFA, a fixed amount

will be paid.



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According to the Income Tax Rules, 1982, where free or

concession passage for travel is provided to an employee,

there shall be included in the income of the employee "where

the passage is provided in accordance with the terms of

employment, an amount equal to the sum by which the cash

payment if any, by the employer exceeds the actual

expenditure enoccured by the employee".

In order to substantiate the claim for reimbursement a

Travelling Expense Statement along with prof of travel such

as air-train thickets for self and family may be submitted to

Staff Payment Cell on resuming duty.

c) Leave will always be adjusted first against any remaining

balance of a previous year before being adjusted against the

current year's entitlement.

d) If privilege leave is cut short by any employee on his own

accord or by the concerned Department Head, due to exigency

of work, a note should be sent to Human Resource Division

immediately on resumption of duty for adjustment of leave.

e) If leave fare assistance was received by the employee and due

to early resumption of duty he does not qualify to receive it,

leave fare assistance will have to be refunded in case the

balance leave for the year in below 14 days, Leave fare

Assistance need not be refunded.



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However, on confirmation if the employee so desires, the

leave may be adjusted against his entitlement and the deducted

amount refunded.

LOAN POLICY

The bank guarantees loans for car and scooter/ m otorcycle.

1. Application under the Loan Policy, which are duly

recommended by the concerned Division/Department Head,

should be forwarded to Human Resource Division for

processing. Applications will be approved subject to

availability of Funds at the concerned Banks.

2. As per the Bank's Policy for financing loans, the vehicle

should be jointly registered in the name of the Bank and

employee. The employee will be entitled to have to transferred

in his name only after bank has certified full clearance of all

dues.

3. All employees will also have to take out a comprehensive

insurance policy for the vehicle in order to avoid monetary

loss in case of accidents.

4. Since the bank stands Guarantor of all such loans, in order to

safeguard its own interest, the employee will execute a counter

guarantee in favor of the bank, guaranteeing the full an final

settlement of the loan at any time on demand by the bank or in

case the employee ceases to be in the service of the bank for

any reason.



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These are normally given to employees involved in actual sales

only.

Repayments:

Repayment of the loan will take place within a maximum

period of 48 months. This repayment may also be made within a

shorter period through accelerated recovery, if an employee requests

this or by means of a lump sum payment.

Fresh Loan:

The employee may apply for a fresh loan not earlier than four

years after he has received the first loan which should be full paid

off by that time.

However, he may decide to use the vehicle for a period longer than

four years under the same scheme.

Mileage:

The mileage scheme of the bank is based on a repayment

schedule of 48 months with a minimum mileage of 1,290 kilometers

and maximum mileage of 2000 kilometers per month. However, the

actual mileage claimed by the employee depends on the mileage

recommended by the Division/Department concerned, of which the

employee will be informed by H.R.D. The same rate of mileage is

also applicable in cases where a car is bought on his own without a

bank loan and for use of the car after repayment of the loan.

CAR LOAN FACILITY



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The bank has decided to adopt a policy for granting bank

guaranteed loans for purchase of a car to all assistant managers

irrespective of whether they are involved in sales.

Those Assistant Managers who avail this facility can apply for

a mileage for the instance from residence to office and back. In case

a mileage is sanctioned the pick & drop facility presently enjoyed at

the Head Office and retional or zonal office will be withdrawn.

Out of this sum the owner of the vehicle has repay the

principal amount along with interest thereon, taxes, comprehensive

insurance and all repairs for the car as well as gasoline, oil and all

other expenses.

It is foreseen that occasionally large repairs for these cars may

be necessary. Then the owned of the car will have a problem to pay

for such repairs. For this reason, the bank will keep back a certain

amount from the mileage money towards a repair fund which will be

built up through monthly deduction of installments. Deduction will

start from the 13th month of the loan which will be retained by the

bank from the employee's salary. This fund will be at the disposal of

the car owner for any large unusual expenses like repairs, yearly

insurance etc. If this fund is depleted, ductions per month will start

again till the fund is replenished.

This fund will be an interest bearing fund and the rate of

interest will be 12% per annum. At the end of four years/settlement



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of loan, whatever balance plus interest is in the fund will be handed

over to the individual.

Authorized absence:

In case of authorized absence exceeding 15 days (leave, bank

trips, inside/outside the country etc.) there are two options open to

the employee (those who are getting standard mileage):

1) He may deduce to leave the car with the bank in which case

the bank will pay the proportionate loan installment s to the

bank without charging it to the employee but no other

payments whatsoever. The car will be garaged by the bank and

will not be used.

2) In case the employee decides to retain the use of the car, the

bank will not pay any mileage or other dues for the time of his

absence.

If an employee has been granted excess mileage also and is on leave

in any month, and has not worked the full month (no

consideration of casual or sick leave for a day or two) then the

mileage payable to him will be calculated on a prorate basis.

The normal as well as excess entitlement, if any, will be

prorated and the concerned rates applied.

TRAVELLING SCHEME

All official arrangements for employees whether at Karachi or

upcountry will be made after prior approval.



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A travelling advance may also be taken by the concerned employee

keeping in mind, the entitlement and the length of stay planned. For

this purpose an advance form may be filled in, recommended by the

Division/Department Head and forwarded to Human Resource

Division for approval.

A travelling expense statement should be filled in & submitted

to Human resource Division/Staff payment cell in order to

substantiate the claim the travel expenses immediately on return

from the tour.

Breakup of Boarding Allowance:

Breakup 15%, Lunch and dinner 30%, each Misc. 25%.

a) 100% Boarding will be allowed in case if absence from the

Headquarters for 12 hours or more.

b) 50% boarding will be allowed in case of absence from the

Headquarters for 6 to 12 hours.

FOREIGN TRAVEL

In case of foreign travel, rules and regulations of the State

Bank of Pakistan will apply. Claims can be made according to he

Daily allowance prescribed for different countries by our principals.

The administration division and Human Resource Division

should be informed by the concerned Division regarding any

planned visit abroad by any employee. All official travel



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arrangements will be made by the bank and a traveling advance may

also be taken and substantiated as mentioned above.

i. TRANSPORT

ii. LODGING

These costs can be claimed in two ways only:

a) Global, to the extent of the Daily Allowance entitlement.

b) Against actual, in case the cost of preselected hotels surpasses

the global amount.

MATERNITY

Subject to a maximum of two deliveries only during the entire

length of service. 90% of maternity bell will be reimbursed, upto a

maximum expenses limit under this head or one basic salary, which

ever is higher, on each delivery.

Employee may apply for an advance if necessary. An

additional payment will be allowed for caesarian cases. The bills

claimed under this head should pertain only tot he actual period of

confinement and not to pre and post delivery expensed , which

should be claimed against the annual entitlement. No payment will

be made for pursing charges, diet charges or any non-medical items.

Here again the maximum limit of each hospital pertaining to

room charges will be as stated above, in case of bills which exceed

the entitlement of one basic salary.

Bill received after 15th of any month would be paid along

with the salary of the subsequent month. Accumulated bills will not



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be entertained. In case of continued treatment part bills can be

submitted or intimation given in writing to Human Resource

Division of such treatment, so that the employee is allowed to

submit accumulated bills.

Expensed relating to Herbal treatment,t dentures, gold fillings,

spectacles and cosmetic surgery will not be entertained.

HOSPITALIZATION

In those cases where admittance to hospital is required total

hospitalization expenses, which include Doctor's fees, X-Ray

charges, Medicines, Laboratory charges etc., will be reimbursed by

the bank at its description against proper receipts. No payment will

be made for nursing charges, diet charges or any non-medical items.

INSURANCE PLAN

The bank has made arrangements to provide adequate 24 hour

insurance coverage of all its employees in case of death or

permanent disability while at work or travelling or at home.

i. PERSONAL ACCIDENT POLICY

Coverage is provided to all employees, probationers as well as

confirmed employees, against any bodily injury caused by

accidental, external and visible means, which injury shall solely and

independently of any to the cause result in the death or permanent

total disability of the insured. In the case of death of an injured

employee, the bank will pay the amount received from the insurance

bank to the employees nominated beneficiary.



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The benefits of this plan with the limits of Compensation are

as follows:

1. Death only 100% of sum insured

GENERAL

The bank reserves the right to refer any person to the bank

Doctor as and when deemed necessary to scrutinize all medical bills

and to reject payment of factious bills, if any.

Any misuse of the medical scheme by an eligible employee,

would be liable to strict disciplinary action.

Medical Expenses

Under this plan employees are covered for the medical

expenses incurred on account of hospitalization and treatment,

resulting due to accidents only, for a maximum period of 52 weeks

after the date of the accident.

Under this policy it is necessary to report an accident to the

insurance bank immediately followed by the claim forms which are

filled in to substantiate the claim. All employees must therefore

report any such accident immediately to their Division/Department,

with a copy to H.R.D. within 24 hours.

ii. GROUP LIFE INSURANCE POLICY

All confirmed employees are also covered under this policy. If

an employee dies, while insured under this policy, the insurance

bank will subject to provisions of the policy, immediately upon

receipt of due proof in writhing of the death of the employee, pay



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the amount for which the employee is insured, which will be paid by

the bank on receipt from the insurance bank to the nominated

beneficiary. This is in addition to the accident insurance.

2. permanent disablement:

i) Permanent total loss 100% of sum insured of both eyes or of

two limbs.

ii) Permanent total loss 75% of sum insured of one eye and of

one limbs.

iii) Permanent total loss 50% of sum insured of one eye of one

limb.

iv) Permanent total 10% of sum insured of the finger or thumb or

toe.

SEPARATION OF SERVICE

i) CONFIRMED EMPLOYEES:

a) An employee's service can be terminated on three months

notice in case of a manager or level above that and one

month's notice in case of a junior Officer, Senior Officer and

Assistant Manager or pay in lieu thereof. This term shall apply

to either side. It is however understood that no notice is

required in case services are terminated on grounds of

misconduct, willful neglect of duty, breach of trust or any

other dereliction of duty or misdemeanor prejudicial tot he

interest of the bank. It is further understood that any financial



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indebtedness of the employee standing to the detriment of the

bank's prestige will amount to a very serious misdemeanor

towards the bank.

b) If in the course of an employee's service, the employee suffers

from any serious ailment or permanent disability of any kind

which in the opinion of the management may or is likely to

interfere with the due performance of duties, the employee's

service may be terminated at the discretion of the management

by giving notice as mentioned above, or payment in lieu

thereof as the bank may deem fit.



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Terms of Employment: -

The following are four categories of employment in Askari

Commercial Bank Limited;

1. Regular Employment;

2. Probationer Employment;

3. Contractual Employment;

4. Temporary Employment; and

5. Casual Employment.

Regular Employment: -

These are the employees which are after the final selection

employed for a regular period. These employees enjoy all the benefits

such as annual gratuity fund, Retirement benefit and after the retirement,

pension etc. Usually managers and supervisors fall in this category.

Probationer Employment: -

When an employee is selected for some post, he or she undergo for

the probation period of 6 months normally. However for the managementcadre, it can be less than 6 months. When the probation period is

completed, a contract is signed by the employee with personnel manager.

Contractual Terms: -

There are three major considerations;

Employment is temporary in nature.

The person should be of age 60 or above.

Duration of employment contract is one year and

renewable.



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When the bank management feels that the person retiring from the job

have enough capabilities and potential to work more in the benefit of the

organization, then sign this type of agreement with the retired employee.

Employee form the top to bottom can be included in this type of

employment terms.

Temporary Workers: -

Employees of cadre of workers and supervisors are hired for a period of

6-9 months according to government rules on temporary terms of

employment.

Casual Workers: -It is concerned with the daily wages workers. When the company

requires the workers urgently, they employ the casual worker to fill the

vacancies.

Apprenticeship Training: -

According to government regulation, Banks have to hire the apprentices

against the regular scheme.ACBL is not bound to give regular jobs to the apprentice trainees.

Sources of Employment: -

When the Personnel Department has projected the human resource

demand in future, then the concern for the personnel manager is filling

projected openings. Askari Commercial Bank Limited uses these two

main sources of filling these employment openings;

1. Internal Sources;

2. External Sources.



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Internal Sources: -

For this purpose, two types of documents are maintained about the

employees in Askari Commercial Bank Limited.

1. Skills Inventory Chart ( for non managers)

2. Management Inventory Chart (for manager cadre).

These inventory documents catalogs each employees

skills and

Abilities when there is need of new job, internal employees can go for

this job. Personnel managers are responsible for internal job placements.

Another internal source is employee referrals.

External Sources: -

Not every future opening can be filled with present employees. For some

jobs, they have to fill the vacant posts by outside people. Some jobs are

entry level jobs, so there is a need of external sources of human

resources. The following are the external sources of employment for

Askari Commercial Bank Limited.

i. Advertisements.

ii. Universities.

iii. Management trainees.

iv. Apprentices.

v. Internees.



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Performance Appraisal: -

The performance of the employees at Askari Commercial Bank Limited

is appraised on the basis of Annual Confidential Report. A Performa is

made by the head office and is sent to immediate superior for filling

about different characteristics necessary for the job.

Different types of performance appraisal are issued for evaluating the

performance of the employees in Askari Commercial Bank Limited

working in different categories. In Askari Commercial Bank Limited, the

performance of the employees is evaluated on the graphic or linear

method.

Salary: -

Askari Commercial Bank Limited needs for its operations highly

qualified, experienced, dedicated, and motivated staff with a carried mix

of operational and technical skills. Salary of an employee is determined

by a competent authority according to the grade.

Askari Commercial Bank Limited tries it best to keep the staff fully

satisfied and provide them with perfect career paths. The employees are

paid well so that they can maintain reasonably decent living and are

motivated to work as banks employees.

The employee compensation at Askari Commercial Bank Limited caters

both direct financial payments and indirect financial payments. The pay

scale is determined on the compensable factors and on the decision

making ability for the managers and executives. Allowances, which are

given to employees other than the basic pay, are as follows:

House Rent Allowance.



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Utilities Allowance

Technical allowance.

Traveling Allowance and Daily allowance.

Fringe Benefits: -

In Askari Commercial Bank Limited, following benefits are offered to

the employees.

Medical Facility.

Facilities at residence.

Grants of incentives for improving qualification every year.

Cash prizes.

Increments (Annual increase in pay)

Bonuses.

Indirect Compensations: -

Askari Commercial Bank Limited offers four types of indirect

compensation to its workers.

Employee insurance scheme

Providing funds

Gratuity scheme.

Pay Plans and Incentives at Askari: -

Establishing Pay Rates: -

For establishing the pay rates, first step is to conduct the salary surveys.

The Salary Surveys: -



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For the purpose of conducting salary survey, Askari Commercial Bank

Limited is taking help of The Ferguson firm which conducts surveys and

researches in the field of marketing and finance. Moreover, the banks

managers are well informed about the pay and salary structure for the

candidates to be hired in case of hiring. This external survey by Ferguson

is conducted once in two years. Complete documented information is

being delivered to the bank so that the pay scales do not vary from the

market rates.

Job Evaluation: -

Evaluation of the job performance is done yearly. The purpose is to seeand identify the employees who have done their respective work well

through out the year considered and who have not been able to show

good performances.

The job evaluation committee does it and as a result the yearly bonuses

and allowances are given to appreciate the employees who have done

really well. Three kinds of forms help in evaluating the employees.

Pay Plan at Askari: -

Pay plans at Askari are established on the basis of job rating. All jobs are

ranked from top to bottom, on the basis of compensable factors.

Employee with higher rank gets higher salaries and incentives. Askari

Bank has its own criteria for establishing pay rates.

The Human Resource manager said that mostly employees are paid on

the basis of skills they have. HR manager believes that competency and

skill based pay can increase motivation and employee commitment. But



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more often employees are paid on the basis of their jobs. Their pay is

based on job or skills.

Skill Based Pay: -

Generally, pays in Askari Commercial Bank Limited are given on the

level of performance and at times on the nature of the job. Skill based

pay is given to employees for the recognition of their knowledge,

decision making, problem solving abilities and competency of efficient

and effective working in their jobs.

Variable Pay: -Variable pay is a group incentive plan that ties pay to some measure of an

organizations overall profitability. When the bank performs or the

branch of the bank performs spectacularly in terms of profitability for a

particular year, the whole branch is given a variable pay.

As variable pay is a team effort, every branch wants to excel this way.

This adds good name to the bank and its particular branch and the work

force of that particular branch becomes role model for others.

Compensation Plan: -

Compensation plan for Askari employees involves following things;

Basic Salary;

Bonuses;

Allowances;

Reimbursements;

Short term Incentives;



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Long term Incentives.

Basic salary involves fixed compensation paid regularly. Bonus is given

to times in a year to managers and professional employees, percentage of

which lies from 80% to 100%. Allowances and reimbursements are short

term incentives.

Askari Commercial Bank Limited has also several incentive plans,

including individual performance awards and bonuses, team awards.

Incentives for the Employees at Askari: -

Employees at Askari are paid basic salary as well as some sort of short

and long term incentives. Individual incentive programs are launched at

Askari to give income over and above basic pay to individual employees

who meet specific individual performance standards.

Incentives for Managers and Executives: -

Managers and executives play a central role in influencing divisional and

corporate profitability. Askari Commercial Bank Limited puts

considerable attention towards their rewards. Most managers get shortbonuses and long term incentives in addition to salary.

Askari Commercial Bank offers stock option to its managers as the long

term incentives. The purpose of stock option is to motivate and reward

management of the bank for long term corporate growth, prosperity and

shareholder value.

Bonus: -

Along with the basic salary, bonuses are given to managers two times in

a year. The percentage of bonus is 80% and sometimes 100% to their

pay.



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Allowances: -

House rent and Utility allowance are also given to managers. Managers

are paid 42.5% and 10% of their incremental pay as house rent and

utilities allowance respectively. 10% of the salary is given to as medical

facility, and for the general utilities like telephone 10% of the salary is

also being given to the utilities. So the overall salary comes to a higher

level including all these cash and other benefits.

Reimbursements: -

Reimbursements for medical, telephone and petrol expenses are also

given to managers and executives.

Incentives for middle and lower level Employees: -

Middle level employees and professionals are also paid bonus,

allowances, and reimbursements along with their basic pay. Lower level

employees like peon, driver, and technicians are paid dearness allowance,

house rent allowance and medical allowance along with their basic

salary. The incremental stages for these employees are +30, where asothers have +25 stages in their jobs.

Ensuring Accuracy & Authorization: -

The following payments shall be made in the routine, with such

additional payments as the management may direct from time to time:

Medical Reimbursement: -

Medical reimbursements are made to staff and executives of the bankaccording to the bills presented by them. What to be done and how to



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reimburse the medical expenditure is shown in the required action

section.

Claims for Traveling allowance and Daily allowance: -

(TA,DA)

Allowances are given to the employees for the traveling of the executives

from one city to another or abroad, all the expenditure is on the bank,

daily expenditure can also be recovered through claims.

Required Action: -

Ensure the amounts claimed are in accordance with the prescribed

rates.

Check accuracy.

Check authorization.

Ensure completeness of claims.

Fuel and Lubricants: -

The bank also provides free traveling facilities to its employees by

paying amount against the consumption of fuel dependent upon their

respective ranks. It is of two types;

1. Reimbursement to executives;

2. Official Expenditure.

Required Action: -

Refer employee related and inform to the bank.

Office Expenditure: -

PTCL connections.



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Corporate connections

Mobile phones and connections

Reimbursements to executives.

Salary Disbursem

Askari Commercial Bank Limited

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Transcript of Askari Commercial Bank Limited