Final Bank Alfalah Project

BRIEF HISTORY OF BANK ALFALAH LIMITED

Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited

company under the Companies Ordinance 1984. Its banking operations commenced

from November 1st ,1997. The bank is engaged in commercial banking and related

services as defined in the Banking companies ordinance 1962. The Bank is currently

operating through 45 branches in 21 cities, with the registered office at B.A.Building,

I.I. Chundrigar, Karachi.

Since, its inception as the new identity of H.C.E.B after the privatization in

1997, the management of the bank has implemented strategies and policies to carve a

distinct position for the bank in the market place. Strengthened with the banking of

the Abu Dhabi Group and driven by the strategic goals set out by its board of

management, the Bank has invested in revolutionary technology to have an extensive

range of products and services. This facilitates their commitment to a culture of

innovation and seeks out synergies with clients and service providers to ensure

uninterrupted services to its customers.

The bank perceived the requirements of customers

and matches them with quality products and service

solutions. During the past five years, bank has emerged as

one of the foremost financial institution in the region

endeavoring to meet the needs of tomorrow as well as

today. To continually upgrade the quality of service to the

customers, training of team members in all the integral

aspects of banking, customer service and IT was specially

focused.

The portfolio concentrates on all aspects of conventional banking as well as the

financial needs of corporate sector. Dynamic and high value product includes Car

Financing, Home Financing, Rupee Travellers Cheques, Credits Cards, Debit Cards,

On line Banking, ATM and consumer Durables. In addition to this, Islamic Banking

Division is a recent initiative, which operates as separate branch. It offers Shariah

Recruitment & Selection 1

Compliant products through a network of five branches, which will increase to 50 by

the year 2007. The bank is committed to combine all it s energies and resources to

bring high value, security and satisfaction to its customers, employees and

shareholder. The Bank has invested in revolutionary technology to have an extensive

range of products and services. This facilitates commitment to a culture of innovation

and seeks out synergies with client and service providers to ensure uninterrupted

services to it customers.


V I S I O N

“To be the premier organizations

operating locally and internationally that

provided the complete range of financial

services to all segments under one roof”

MISSION

“To develop and deliver the most innovative

products, manage customers experience, deliver

quality service that contributes to brand

strength, establishes a competitive advantage

and enhances profitability, thus providing value

to the stakeholders of the bank


BOARD OF DIRECTORS

H.E. Sheikh Hamdan Bin Mubarak

Al Nahayan

Chairman

Mr. Mohammad Saleem AkhtarChief Executive Officer

Mr. Abdulla Nasser Hawalileel Al-Mansoori

Mr. Abdulla Khalil Al MutawaMr. Ikram Ul-Majeed Sehgal

Mr.Khalid Mana Saeed Al OtaibaMr. Nadeem Iqbal Sheikh


MANAGEMENT

Recruitment & Selection

Chief Executive Officer

Executive InchargeStrategic Planning & Global

Marketing

Executive InchargeInternational &Treasury Division

Executive InchargeHuman Resources Division

Executive InchargeIT Division

Executive InchargeCredit Division

Executive InchargeSystem & Operation Division.

Executive InchargeEstablishment & Administratration

Executive InchargeCredit Monitoring Division

Executive InchargeBusiness Development DivisionS.A.M./ Car Finance/ Leasing

Executive InchargeLegal Affairs Division.

Executive InchargeAudit & Inspection Division

Executive InchargeFinance Division

Executive InchargeCorporate Banking,

SME Financing & Home Loans

Executive Incharge Islamic Banking Division

Executive Incharge New Products &

Service Quality Division

Executive InchargeCards Division

5

ORGANIZATIONAL STRUCTURE

President (CEO)

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Officers Grade I, II, III


Clerical Staff Non-Clerical Staff

Cashier Typist Clerks & Guards Messengers

Assistants

DEPARTMENTS

Bank Alfalah Limited has the following departments:

Account Opening Department

Human Resource Department

Trade Finance

Credits

Accounts Department

Administration / Personnel

Special Asset Management (SAM)

MIS Department

Marketing

Cash & Deposits

Foreign Currency Accounts


HUMAN RESOURCE MANAGEMENT

“The policies and practices involved in carrying out the “People” or Human Resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising”

The concepts and techniques need to carry out the “people” or personal aspects of management job are:-

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

HR’s Definition at Bank Alfalah:

“We Are Struggling For People.”

HRM DEPARTMENT & BANK ALFALAH

Like other organizations HRM department acts as the mind of the organization. Without the HRM department Bank Alfalah cannot imagine being able to function. At Bank Alfalah, HRM has great significance, everybody depends on this department for the entire organization to work and succeed in its mission.


Human Resource Department-Hierarchy


RESPONSBILITIES OF HR OFFICER:

Following are the responsibilities of HR Officer in Bank Alfalah:-

Recruitment And Selection

Policy Making

Retention Program

Improve Working Relation Of Employees

HRM Management Responding To Changing Environment:

Bank Alfalah’s HRM Management is responding to changing environment by

Follow Customers Needs

Adopt Continuous Changes

Decentralized Organization

COMPETITIVE ADVANTAGES:

Bank Alfalah has following competitive advantages over its competitors:

Strong Pay Structure

Retention Program

All Banking System Based On It

Select People From Top Universities

Account EI Has 30 Years Work Experience

JOB ANALYSIS

“The procedure for determining the duties and skill requirements of a job and the kind of person who should

be hired for it”


Job Analysis includes: Job Description Job Specification

Job Description:“A list of job’s duties, responsibilities, reporting relationships, working conditions,

and supervisory responsibilities”Job Specification:

“A list of job’s human requirements,” that is, the requisite education, skills, personality, and so on “

METHODS OF COLLECTING JOB ANALYSIS INFORMATION

There are two methods of collecting Job Analysis Information:- Interviews Observation

INTERVIEWS

“A procedure designed to obtain information from a person through oral responses to oral inquiries”

Who Conducts Interview?

“Interviews are taken by the branch HR head responsible for recruitment and selection”

Types Of Interviews Taken:

• Structured interview only• Structured Sequential Interviews• Panel Interview

Criteria for Selecting Candidates:

Following is the criteria for selecting candidates in Bank Alfalah based on:

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

INTERVIEW QUESTIONS

Why Should I Hire You? Why Do You Want To Work For Us?


What’s Your Great Strength? What’s Your Great Weakness? How Much Salary Do You Expected From Us?

RECRUITMENT

“The development of a pool of applicants for jobs in the organization”

Sources Of Job Recruitments:

Following are the some sources of Job Recruitment in Bank Alfalah:

By Universities

By Website

By Coaching

By Newspapers

Recruitment Process:

Following are the recruitment processes in Bank Alfalah:

1.) Assess need (strategic planning and tactical planning)2.) Create a pool of candidates:3.) Screen out candidates:4.) Make selection5.) Evaluate recruitment process:

1.) Assess need (strategic planning and tactical planning)

There is no fixed quota of number of employees to be recruited, it depends on need and the strategic (organizational) and tactical (branch level) requirements.

2.) Create a pool of candidates:

The prospect candidates are attracted through advertisement in the newspapers, on the website online and also the walk in.

3.) Screen out candidates:

Through interviews and tests they screen out the less attractive candidates.

4.) Make selection: After further interviews and other processes the final candidate is selected. Questions in an interview are made by doing proper job analysis of the job. That includes identifying the job duties and requirements.


5.) Evaluate recruitment process:

Evaluate effectiveness of recruitment by comparing the results to expected results.

TYPES OF RECRUITMENT

There are two types of recruitment in Bank Alfalah:1. Internal 2. External

1. Internal:

“Includes recruiting of already existing employees for new jobs within the organization”

2. External:

“Includes bringing “new blood” in an organization. Recruiting people who are new”

INTERNAL RECRUITMENT IN BANK ALFALAHBank Alfalah normally

• Less emphasis on Internal Recruitment

• Existing employees can respond to new job offers as externals

• Performance appraisals

EXTERNAL RECRUITMENT IN BANK ALFALAH

In Bank Alfalah external recruitment is on

• Need basis• No yearly or monthly recruitments• Every branch has it’s own HR department• Head office sanctions recruitment for new employees• Adds in leading newspapers (Dawn, Jang)• College Recruitment (under planning)• Online application forms• Short listing• Interviews • Decisions made through head office • No help from recruiting agencies


DIRECT INDUCTION OF FRESH CANDIDATESThrough direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate candidates for its organization and the process is as follows:

EXPERIENCED PROFESSIONALSBased on requirements of experienced staff, Bank Alfalah also recruits talent from the

marketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals

at all levels who wish to join hands with Bank Alfalah. The procedure for selecting

such professionals is as follows:


Executive Recruitments:

In Bank Alfalah, Executive recruitments are done by CEO.

Recruitment of MTO’s (Management Training Officers):

In Bank Alfalah, recruitment of MTO’s is done on Yearly Basis

Recruitment of Internees:

In Bank Alfalah, recruitment of Internees is on

> Walk-ins > Letter of recommendation from college


Recruitment Orientation

Training

New Employee

Human Resource Assessment

Bank Alfalah Ltd. has worked hard to build its human resource team and ensure that the quality of newly inducted staff is not comprised with growth. For recruitment and selection bank‘s policy is to hire suitable candidates. By suitable candidates bank refers to candidates having proper educational qualification, experience and background.

Bank Alfalah not only is one of the fastest growing bank in Pakistan, that provides its customers with a number of financial services, but is also a great employer of human resources, that provides its employees with a conducive environment that not only is challenging but also helps them in applying and gaining knowledge.

The above figures show that all prospect employees feel confidence in Bank Alfalah as their prospective employer. Bank Alfalah, as a response to this confidence has three ways of employing prospect employees for their organization.


Selection

No. of Employees 2001-2008

959 1504 21333352

52186543

7371 7584

0

2000

4000

6000

8000

2001 2002 2003 2004 2005 2006 2007 2008

OREINTATION

The orientation program of Bank Alfalah contains:

Introductory Lecture

Printed “ Employee Hand book” in Bank Alfalah

Time Duration

Familiarize new employees with their new jobs, work units and organization in general.

BATCH TRAINEESAll employees selected through this process, have to first complete a probation period

before given a complete status of a Bank Alfalah employee. The major benefit of this

procedure is that Bank Alfalah can employee a

large number of employees at a lower cost. The

procedure for accepting a batch trainee is as follows:


TRAINING

“The process of teaching new employee the basic skills they need to perform their jobs.”

Basic Steps in Training:

Following are the basic steps in training employees in Bank Alfalah:• Need Analysis • Instructional Design• Validation• Implementation• Evaluation and follow up

- Training Mangers and faculty is hired for training purposes.- Training Mangers are in their respective head offices

The Training Centers Of Bank Alfalah:

Bank Alfalah’s training centers are in Karachi & Lahore. These training centers are responsible for providing multi-level high quality training programs in following areas:

- Consumer banking operations

- Credit administration/documentation

- Trade finance operations

- Marketing & selling skills

- Customer service skills

- Performance appraisal skills

- Time management & personal effectiveness


TWO SCENARIOS OF TRAINING

Training Calendar:

In Bank Alfalah, Head office devises a calendar according to which they train their employees

Need Basis:

In Bank Alfalah, Branch Manger realizes that specific department lacks in some skill.

TWO TYPES OF TRAINING

Employee

On The Job Training:“Training a person to learn a job while working on it”

Off The Job Training:“Training an employee to learn a job while providing him a class room environment”

ON THE JOB TRAINING

“On The Job Training” in Bank Alfalah is done by

Making teams of new employees with a few old specialized Employees.

Contribution to overall productivity.

Lower cost

Lower Time


On the Job Off the Job

Management Training Officers (MTO) Training Program:

In Bank Alfalah, MTO’s training program is 3 months On the Job Training & 9 months Off the Job Training.

OFF THE JOB TRAINING

In Bank Alfalah, Off the Job Training is done by

In-house training ,done at least once a year

Employees from all over Pakistan attend seminars and courses.

Employees are tested after the completion of the course

Specialist trainers are hired

Provide a proper learning environment to the employees Professional faculty is hired

Increases employee loyalty

Labor productivity is zero

Cost is high

Time is consumed

Training & Development:

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

Consumer Banking Operations

Credit Marketing & Credit Proposals

Credit Administration/Documentation

Trade Finance Operations

Marketing & Selling Skills

Customer Services Skills

Performance Appraisal Skills (Self Appraisal)

Time Management & Personal Effectiveness


PERFORMANCE APPRAISAL SYSTEM

“Evaluating an employee’s current and / or past performance relative to his or her performance

standards”

The performances of employees are appraised yearly at Alfalah Bank. HR head said that

“Performance appraisal helps us in estimating employee’s current performance, setting work standards and then providing feedback to employees with the aim of

eliminating performance deficiencies”.

APPRAISAL METHOD AT ALFALAH

The Appraisal Methods at Bank Alfalah are1. Self Appraisal Method

Ratting Evaluation

2. Problems During Appraisal Unfair Assessment (Bias)

BEHAVIOR APPRAISAL

In this service oriented industry behavior is as important as performance on job. To manage behaviors and appraise company has devised a managing behavior system to evaluate their core values. Each employee in such a system is rated against the behavior performance achieved, against the required benchmark applicable, depending on the Job Grade.

PERFORMANCE STANDARDS AT ALFALAH

Alfalah Bank Has laid down the following Performance Standards:

1-Demonstrates Commitment2-Aligns Activities3-Promotes Alfalah Long Term Objectives

MANAGING CAREER & FAIR TREATEMENT


In Bank Alfalah, Managing Career & Fair Treatment is based on:

Promotion Decision

How To Handle Transfer

Communication At Alfalah

Manage Dismissals

PAY PLANS & INCENTIVES AT ALFALAH

Pay Plans:Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from top to bottom, on the bases of compensable factor. Employee with higher rank gets highest pay and incentives.

Compensation Plans for Employees:In Bank Alfalah, compensation plan for employees includes:

Basic Salary

Bonuses

Medical Facilities

Allowances

Incentive Plans:

In Bank Alfalah, incentive are provided to

Managers and Executives

Middle and Lower Level Employees

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

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


Customized Services Creative, Learning & Healthy Environment Highly Qualified, Experienced & Committed Staff Profit & Gain Sharing Plans

Financial Benefits:

The financial benefits provided by Bank Alfalah to its employees are

Severance – PaySeverance Pay is given according to

1. Policy 2. Give Full & Final Settlement3. Half Salary As A Complementary (Optional)

Supplemental Unemployment BenefitsSupplemental Unemployment Benefits are given

1. During Annual Routine Audits2. Other Privileges

Insurance Benefits:

Bank Alfalah gives insurance benefits on

Worker’s Compensation Complete Life Insurance Hospitalization & Medical Insurance

Other Benefits:

Other benefits provided by Bank Alfalah to its employees are

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

Retirement Benefits:

Bank Alfalah gives retirement benefits on the basis of


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

Services Benefits:

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

Introduction Of MENTORS (HR – REPRESENTATIVE) Counseling Services - Financial, Career, Job-placement, Grievances Bank Alfalah Mohtisib Lunch & Learn Program Employee Transportation Educational & Training Subsidies Flexible Benefits Programs (Few-limitations) No-subsidized Child & Elder Care

EMPLOYEE SAFETY & HEALTH CONTRIBUTION

Bank Alfalah is

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

Avoiding the Causes Of Accidents:

Bank Alfalah’s management plays an important role in avoiding the three causes of accidents

Unsafe conditions Unsafe acts Accident prone people

HEALTH PROBLEMS & REMIEDIES


Following are the steps that taken by Bank Alfalah’s HR Department to solve the health problems in the organization and make possible remedial changes

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

Other Precautionary Measures:

Other precautionary measures taken by Bank Alfalah for the safety of employees are

1. Personalized Attention To Employees2. Angry Employees Management3. Temporary Stop The Working4. Counseling5. Real Root Problem6. Use Of Personal Skills7. Professional Attitude Adopted8. Future Avoidance

SWOT ANALYSISBAL is one of the fastest growing banks in Pakistan. In the light of these situations

we can make an analysis.

Strengths:

Bank is in its growing stages so there is good financial position.

Professional and Committed workforce

Low cost than other major banks

Increasing the number of branches in the country

Successfully launching new Product Lines

Well experienced and quality staff

Efficient internal communication system

Weaknesses:


Although the bank is growing fastly but it has some weaknesses which it should

remove to make itself further strong.

Less Advertisement

Slow in introducing new products

The staff is not satisfied with the salary structure

Gives its staff less benefits

Opportunities:

Extension of International network of the branches

Introduction of innovative products

Growing market

ATM facility for all customers

Threats:

Uncertain economic conditions

Action taken by competitors

CONCLUSION

HRM managers at Bank Alfalah are performing a great job as far it is concerned

Motivating them and looking after them. Along with the other managers and

employees

HRM managers are also doing a great job in achieving company goals and objectives.

There is a very calm and friendly atmosphere at Bank Alfalah because of the HRM


department and their policies for keeping their employees happy, productive and

efficient.

RECOMMENDATIONS

It is observed that the employees were overburdened so they have to stay at branch till late at night. In this way their efficiency is affected and hiring more employees can reduce their work.

The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs.

Bank Alfalah Limited should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted.

The bank’s management should give more incentives and pay scale of officers should be revised & improved.


System and operations should be more defined and organized.

IT draw backs should be improved.

Administration drawbacks should be improved by the strict control of general issues.

Some employees waive the bank charges (Statement charges, cheque book charges etc) that decrease the income of the bank.

Lockers, ATM, all these facilities should be provided to attract more customers.

Expenditures must be control, which are very high.

BibliographyPersonal Refernces

Mr. Zulfiqar, Accounts Officer.(Bank Alfalah Ltd., Wah Cantt Branch)

Mr. Waqas, Customer Services Officer.(Bank Alfalah Ltd., Wah Cantt Branch)

Web Resources

Bank Alfalah (www.bankalfalah.com)

Wikipedia (www.wikipedia.com)


State Bank of Pakistan (www.sbp.org.pk)

Google (www.Google.com)

Reports & Papers Annual Report Bank Alfalah 2008

Issues in Pakistan’s Economy by S. Akbar Zaidi

International Finance by Maurice D. Levi

Bank Alfalah Limited. (2009). Alfalah Mahana Amdan Plus [Brochure].

Bank Alfalah Limited. (2009). Alfalah Quick Finance [Brochure].

Bank Alfalah Limited. (2009). Alfalah Milkiat Finance [Brochure].

Bank Alfalah Limited. (2009). Alfalah Karobar Finance [Brochure].


Final Bank Alfalah Project

Documents

Transcript of Final Bank Alfalah Project