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BY SALMAN SARWAR A PROJECT REPORT ON ABL

Acknowledgement

First and foremost, I am absolutely grateful to the almighty ALLAH, the most merciful
and beneficial of entire universe, who gave me the enlightenment, courage, chance, &
absolute sprits to accumulate my final project at “ALLIED BANK OF PAKISTAN”
(ABL).

Then I feel a sense of pleasure while saying a few words of thanks to


_______________________________________________________________________
________________________________________________, and finally to my
supervisor, Ms Samin Chaudhry for this kind guidance.

I am very thankful to the management of ABL for providing me the golden opportunity
of working with them. I pay my wholehearted thanks to Mr. __________________, Mr.
_______________, Mr. ________________, for their support and guidance at all levels.

Kamran Azam Butt


MBA-IV
2006-2008

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

Executive Summary

The main emphasis of this project was to develop a clear understanding of the
organization i.e. ABL, especially its personnel department. The project covers all the
practices going on in the personnel department along with the history of the ABL, its
structure, its management style and roles performed by the managers, and finally the last
chapter provides the concluding words like SWOT analysis, recommendations and
conclusion.

In the report the objective was to focus those activities that take place in the personnel
section on regular basis and all those areas that are included in the domain of this section.
Its Organogram depicts the size and complexity of this particular section.

This report contains my subjective feelings and perceptions that may differ with any
other internee or with the management of the ABL, so all the recommendations and
conclusion constitute my own opinion.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

DEDCATION

Firstly I dedicate my project to my enables me to complete my project, secondly I also

pay homage and gratitude to my beloved parents who always dreams for his son to be a

successful person in life. I thanks to Grate Al Mighty Allah who blessed me .

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

SECTION 1

HUMAN RESOURCE MANAGEMENT AT ALLIED


BANK OF PAKISTAN LIMITED

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

ALLIED BANK OF PAKISTAN LIMITED


PRESENT & HISTORY

Allied Bank is the first Muslim bank established on the territory that
became Pakistan, Established on December 3,1942 as the Australasia
Bank at Lahore with a paid up share capital of Rs 0.12 million under
the Chairmanship of Khawaja Bashir Bux, the Bank had attracted
deposits, equivalent to Rs 0.431 million in its first eighteen months of
business. Total assets then amounted to Rs 0.572 million. Today,
Allied Bank's paid up capital & reserves amount to Rs 565.7 million,
deposits come to Rs 34 billion and total assets equal Rs.38 billion.

HISTORY

The Bank's history may be divided into several distinct phases. It


began life as a Lahore based Muslim bank in a financial world, which
was predominated by other communities. Experience gained during
this period proved to be of great benefit in enabling the Bank to
impart financial knowledge and develop banking expertise at a time
when Pakistan suffered from a severe shortage of these skills. During
25 years of united Pakistan the Bank advanced forward in all areas of
its activities. The 1970s was a difficult decade for all Pakistani banks.
In 1971 the eastern part of the country was separated. Australasia
Bank lost more than 50 branches and deposits worth Rs 54.444
million. Nevertheless, growth remained steady and by the close of
December 1973, assets had risen to Rs 1.25 billion and deposits to Rs
849 million.

On 1st January 1974 all the scheduled banks, including Australasia


Bank, were nationalized. Three small provincial banks were merged
into Australasia Bank and on 1st July 1974, the new entity was
renamed as the Allied Bank of Pakistan Limited. Allied Bank began its
operations as a public sector financial institution.

During the 17years(1974-1991) the value of total net assets raised to


Rs 24.4 billion and deposits to over Rs 21.3 billion with 747 branches
network (Figures are for 10-09-1991, the date the Bank was
privatized).

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

ORGANIZATIONAL STRUCTURE OF ALLIED BANK

President

Director Director

Director Director

Director Director

Senior Executive Vice President

Audit & Inspection Division Business Promotion Division

Credit Division Finance Division

Treasury Division Human Resource Division

IT Division International Division

Islamic Bank & Plan Division S.A.M Division

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

HIERARCHY OF HUMAN RESOURCE DIVISION (KARACHI)

Executive Vice President

Vice President

AVP AVP AVP

OG 1 OG 1 OG 1 OG 1

OG 2 OG 2 OG 2 OG 2

OG 3 OG 3 OG 3

Other General Officers And Staff

AVP: Assistant Vice President OG: Officer Grade

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ORGANIZATIONAL STRUCTURE & JURISDICTION


(HUMAN RESOURCE DIVISION)

Human Resource Division

Employee Trust Funds Personnel


Training Wing
Wing Wing

RESPONSIBILITIES OF TRAINING WING


Training, courses & seminars

RESPONSIBILITIES OF EMPLOYEE TRUST FUND WING


Salary Payment of retirement benefits
Disbursement of staff loans Cash security deposits
Leave Medical
Benevolent fund Pension/recovery
General provident fund Staff welfare fund
Marriage grant Issuance of power of attorney
Burial expenses Insurance matter

RESPONSIBILITIES OF PERSONNEL WING


Fringe benefits of Executives Retirement
Registration Transfer/posting
IBP Matters TA/DA Bills
Annual/Special increments Promotions
Fixation of basic pay Appointments
Provision of security guards House rent ceilings
Staff finances Overtime
Confirmation of service Uniform
Incentive increments Staff strength
Staff position Matters relating to
Updating of particulars of branches temporary/contract employees

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

CONTEXT OF HUMAN RESOURCE DIVISION

The context of Human Resource Management given to the department covers


different areas. To be functional and active Human Resource Division
continuously analyzes the jobs and defines descriptions for each job.

Job description is the function that Human Resource Division workout before
proceeding to other functions. Job Description at Allied Bank is done in following
way

JOB DESCRIPTION
Human resource Division analyzes each job and it’s required outcomes. Job
analysis is done by analyzing the past experience, emerging trends, and now after
downsizing the responsibilities of each job is analyzed.

Allied bank holds documents about terms, duties, responsibilities, and


specifications about each job

WORKING HOURS AT ALLIED BANK


Working hours at Allied Bank is inflexible. Timings are 9 to 5. However in some
events of year like closing of accounts, deducting Zakat and other banking
functions timings become different.

HUMAN RESOURCE INFORMATION SYSTEM


Allied Bank is maintaining Human resource information system at all of its
regional offices and head office. The database and information system is manual
at the time. In future bank is going to automate all the operations including
Human Resource information system.

TEAMWORK AT ALLIED BANK


In Allied Bank unfortunately there is no proper working of team. In Bank only
one team exists which is made from very beginning. Whenever every manager
fined some problems or received tasks from other employees he assigns this work
to that team. There must be separate teams for different task. But in Allied Bank
there is only one team for all tasks. There must be a special team for special tasks.
That’s why position of this Bank in the world does not exist in top 500 Banks.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

EQUAL OPPORTUNITY
In Bank there is equal employment opportunity. In case of hiring employees
there is no discrimination of sex. Males and females are hiring, equal opportunity
for them. In some cases women related matters are solved preferable like
canceling transfer way from home Bank is not following any quota system while
hiring the candidates. In the bank handicap form the figure of 2%-3% of the
employees.

MANAGING DIVERSITY
Due to absence of quota system in a Bank people came from different areas of
country during the process of hiring employees. So it is a crucial situation for the
Bank to manage diversity. Employees have different culture, norms, language etc.
so how Bank manage this situation? Solution is that in a Bank there is a big hall
for upcoming employees or new employees. So they sit there and communicate
with each other. Even executive is sitting among them. By this way the Bank
manages diversity.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

STAFFING

Staffing is the practice that is done rapidly in the bank during past ten years. Now
bank is one of the overcrowded organizations of Pakistan. Bank has the policy of
downsizing that is practiced strictly but still there is feeling that crowd of the
employees should be less.

Our study regarding the staffing function of Human Resource Management is as


follows.

HIRING PROCESS OF ALLIED BANK OF PAKISTAN


Allied Bank Limited is bound to follow the Government and State Bank’s rules
regarding recruitment. The process of hiring an employee is as under:

AD IN NATIONAL NEWSPAPERS AND RECEIVING APPLICATIONS

For any vacancy it is obligatory to advertise in two Urdu and two English national
newspapers under the longhead of bank. The advertisement contains the nature
and description of the job, qualification and experience required, and the date of
interview.

Applications of the candidates after the due date of receiving are transferred to
interview panel for interviewing the candidates.

INTERVIEW

Interview of the candidates is being held by a selection board comprises of one


person from Human Resource Division, one from concerned department, and
one form head office. Interview panel check the candidate on the basis of
qualification, experience, personality and communication skills of the candidate
and jot down the rank on the sheet provided them for evaluation.

OFFER LETTER

When a candidate is selected an offer letter is being send to him that contains the
terms and conditions, and the salary structure. Successful candidate has to return
that latter with his signatures if he is willing to work under the terms written in
the letter.

APPOINTMENT LETTER

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

After receiving back offer letter from successful candidate bank issues an
appointment letter that contains the joining date and area of duty.

It should be noted here that bank has not hired any person in last three years.

CHALLENGES IN THE HIRING


Mr. Aslam Hameed told us that biggest challenge that we face is the political
interference during any hiring process.

MOTIVATION IN EMPLOYEES
At Allied Bank the employees have a motivation factor that is dominant over
other factors. Bank employees are the owner of 49% shares of the bank. The
motivation factor bank is using is:

“You are owner of 49% shares and the profit of the bank will be your. If you work
hard you will get more profit and if you work leniently you will loose a big part of
your money”

Human Resource Division is also motivating the employees by offering them


benefits like interest free loans up to 80 times basic salary they are receiving. In
effort to avail these types of benefits employees try to perform well and to get
promotion to increase their pay scale.

INTERNAL/EXTERNAL RECRUITMENT
In the past bank was practicing the policy that for any post internal recruitment
will be preferred. Under this policy the employees of the bank take benefit and
influence the decision by placing their close relatives on the post whether suitable
or not.

But now bank has different policy. Bank prefers external recruitment and the
person selected hired on contract basis.

DOWNSIZING AT ALLIED BANK


Downsizing is now a prominent part of the bank and in the past three years over
1500 employees had leave the bank. The downsizing policy of the bank comprises
of the two basic principles i.e.

• No employee will be forced to leave the bank.


• All the benefits of the employees will be given them at the time of
separation.
The policy of downsizing is managed by offering “Golden Hand Shake” in which
employees who volunteer to leave the organization is given all of the provident

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

fund, gratuity, and the amount equals to three years pay. This scheme is quite
successful and about 1500 employees had leaved the organization under the
scheme in last three years. There is very little amount of employees who are
discharged under disciplinary or other rule violation charges.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

EMPLOYEE DEVELOPMENT

Allied Bank’s Human Resource division has the plans in the field of employee
development that is usually described by the Pakistani Law. The procedures other
then traditional one is not common. The study we had done in this regard is as
under.

PERFORMANCE APPRAISAL
Performance appraisal method of Allied Bank is same as all the Government
organization. In government organization the form used for performance
appraisal is called Annual Completion Report (ACR). Performance appraisal is
done once in the year. The format of that form is given herewith the report. The
performance of an employee is judged mainly under the following criteria:

GENERAL EVALUATION (MAIN AREA OF EVALUATION)

• Achievement actually made during the year


• Improvement made during the year compare with last year
• Prevention of frauds and forgeries made by him/her
• Maintaining discipline

FINAL EVALUATION

• General reputation
• Living style and social life
• Moral and professional integrity
• Leadership qualities and administrative capability

TRAINING THE WORK FORCE


Allied Bank Limited has two training centers. One at Karachi and second is at
Lahore. In Islamabad there was a training center but now it is closed. According
to Mr. Aslam Hameed ABL provides training to its employees through out the
year only in the Eid and national holidays this training process stops.

WHEN ALLIED BANK FEELS TRAINING NEED

On the basis of ACR Human Resource Division review the performance of


employees and find out their areas of weakness. E.g. if an employee is lacking in
administrating the staff working under him he is given a schedule of training in
the nearest training center

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

Other reasons to hold training programs are:

• When new employee without any experience is hired


• Improving the interpersonal skills
• Refresh the knowledge of employees

EVALUATION OF TRAINING

Yardstick for evaluating the training results Human Resource Division checks the
performance in area in which the employee is trained. The performance check is
once again the ACR
CAREER DEVELOPMENT
Allied Bank currently has no prominent policy fore career development of the
employees. The bank is following the policy that was set by government long
period ago. Every employee knows that he will be promoted after a fixed period
with fixed amount of increment. Employees didn’t look for opportunities around
them and in result bank didn’t care to provide option for career development.
Career development at the bank can be said as the dumb terminal at both ends.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

PERFORMANCE APPRAISAL FORM


(ANNUAL COMPLETION REPORT)

Some of the fields are not given in the form, as they were cut out when officer cut
down the confidential portion of the form

NAME __________________ GRADE/DESIGN_________ ___________ STAFF NO______


PAYSACLE______________BASIC PAY AS ON 31-12-2000______________________
DATE OF JOINING______________DATE OF LAST PROMOTION_________________
DATE OF BIRTH_________________________DOMICILE_____________________
ACADEMIC QUALIFICATION_________PROFESSIONAL QUALIFICATION___________
PAST RECORD, ADVERSE REPORT/DISCIPLINARY ACTION (IF ANY) DURING LAST THREE
YEARS I.E. 1998, 1999,
2000_______________________________________________
___________________________________________________________________
INCREMENT GRANTED W.E.F. 01-01-1998 01-01-1999 01-01-2000
ANNUAL ________ ________ ________
SPECIAL ________ ________ ________
BRIEF DESCRIPTION PF THE POSITION HELD DURING ENTIRE CAREER IN BANKING

DESIGNATION/ NATURE OF
PERIOD PLACE OF POSITION POSITION HELD ASSIGNMENT

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

1. Personal appearance and manners

2. (i) Is he capable of drafting letters and memoranda?

(ii) Can he express himself fluently and coherently


in English and Urdu?

(iii) Besides English which other foreign language


can he speak or write with ease?

(iv) Is he capable of communicating effectively


With Pakistani or foreign corporate mangers
And other important customers and handling
their problems with confidence?

3. (i) Does he possesses adequate initiative or is he


a routinist?

(ii) Is he a decision maker or does he tend


to procrastinate and refer to his superiors
matters falling within his powers, with
the idea of shifting responsibility?

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

Brief highlights of the initiatives taken and achievements actually made by the
officer/executive in the following areas in the branch/regional office/and division/s and
department/s etc. of the central office/head office under his jurisdiction, either on his
own volition or in the light of guidelines issued by bank’s management on the subject:

(i) Improvement in genuine profitability of


bank’s branch/s regional office/s under
his jurisdiction

(ii) Elimination of leakages in income and


control on expenditure and elimination
of waste of institutional resources.

(iii) Improvement in the quality of advances


and guarantees.

(iv) Improvement in bank system of work


control and audit and making them efficient
and cost effective.

(v) Prevention of fraud and forgeries.

(vi) Identification and ouster of officials and staff


from the bank who are involve in criminal
acts, enjoy bad reputation or are not discharging
their responsibilities efficiently or honestly.

(vii) Contribution made towards elimination of excessive


staffing levels and improvement of general productivity
of officers and staff under his jurisdictions

(viii) Ability displayed in providing effective leadership and


maintaining decipline among officers and staff working
under his jurisdiction.

(ix) Promotion of adequate growth of bank’s genuine deposits


particularly from private sector and elimination of
window-dressing.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

(xi) Recovery of stuck-up advances.

(xii) Achievement of mandatory targets

(xiii) Timely reconciliation of inter branch accounts

(xiv) Improvement in the quality of service provided to


bank’s customers and the general public and building
up of institution’s image.

(xv) Improvement in general look and standard of tidiness


of offices both within and outside.

Signature of reporting officer:___________

Date:_________

OBSERVATIONS OF THE COUNTERSIGNING OFFICERS

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FINAL EVALUATION

Evaluation of personal life and character


qualities:

(i) General reputation

(ii) Style of living and social life

(iii) Moral and professional integrity

(iv) Leadership qualities and


administrative capability.

2. Effectiveness in follow-up and


implementation:

His effectiveness as a leader to have Bank’s


policies and programmes implemented
expeditiously.

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3. (Field is cut off)

His perception of current and future problems


and prospects in respect of branch/regional
office/division/department of the central office
/head office falling under his jurisdiction or of the
bank as a whole and his capability to develop
adequate response in time.

4. Assessment of his potential as a professional


banker and as an executive and
recommendations about his future
assignment/s where he will make maximum
contribution to the building of building of bank
image and its growth and profitability.

5. OVERALL EVALUATION OF THE PERFORMANCE

Assessment of his overall performance so far

(Please evaluate performance under following


mentioned categories.

MARKS

1. Outstanding 4
2. Very Good 3
3. Good 2
4. Average 1
5. Below Average 0

Signature of Evaluating officer: _____________

Date: _____________

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

COMPENSATION

Allied Bank even though is partially privatizes but still it holds the patterns that
was applicable before privatization. Bank not only provides the basic pay but
have different kinds of allowances and reward that make the compensation
different from other banks.

REWARD ON PERFORMANCE
BEST EMPLOYEE OF YEAR

Every year on the basis of performance and ACR best employee of the year is
selected in all the branches, regional offices, and head office. The selected
employee is given shield and presented as the model for the rest of the
employees.

GOOD PERFORMANCE SHIELD

Each year when an employee shows good performance in his filed of performance
his efforts are recognized by issues him shield. This shield is for all of those who
show good performance.

CASH REWARDS

In cases where an employee shows outstanding performance in difficult


situations he is rewarded with cash prizes. The amount of cash prizes is not fixed.

BENEFITS
Allied bank is not only offering the benefits prescribed by government but also
provides additional benefits. Benefits that the employees of the banks are getting
are as under:

PENSION

Pension is the right of every regular employee of the bank. The amount of
pension is based on the government policies. What amount or percentage
government fixes bank has to pay it to their ex-employees.

GRATUITY

At the time of retirement bank pays a lump sump amount to the employee. The
amount of gratuity depends on the period of service of the employee.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

GENERAL PROVIDENT FUND

In this fund employee and bank shares equally and at the time of separation
employee not only the amount but also receives interest on it.

LEAVES WITH PAY

If an employee wants leave for long time i.e. over 6 week he is paid the amount
equivalent to his per month salary.

OTHER BENEFITS

• Benevolent fund
• Marriage grant
• Burial grant
• Medical allowance (amount spent on treatment)
• House rent allowance (95% of basic pay)

Pensions, gratuity, and general provident fund are provided under government
law while other benefits are provided under bank rule. Some benefits are
provided once in the job like marriage grant.

SPECIAL BENEFIT FOR EMPLOYEES

Employees of the bank can get up to 80 times of basic pay as interest free loan.
E.g. if an employee is getting Rs 2000 as basic pay then he is entitle to get
interest free loan of 160,000.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

GOVERNANCE

Allied Bank is following governance rules prescribed by State Bank as well as of


the bank itself. In the following lines we are discussing the governance pattern of
the bank.

COMMUNICATION STYLE
Allied bank has the pattern of downward communication. Based on the
organizational structure of the bank communication required each level to pass
on.

In the bank communication infrastructure is not so good. There is no or very less


use of notice boards. E-mail culture is not fully utilized there even though facility
is provided to the employees. Major channel of communication are formal letters
and telephone. Memos are also en effective tool f communication.

INFORMAL COMMUNICATION STYLE


When we visited Allied Bank we observed that official language of bank is
English while employees are communicating with each other in Punjabi language.
Similarly the style that should be exists in the organization is not in the bank. We
finally observe that informal communication style is very different from the
policy of the bank.

DISCIPLINE MANAGEMENT
While meeting with Mr. Aslam Hameed he told us that bank always take care of
employee rights but on the other hand also keep discipline because in the past
employee took undue benefit of the management leniency

DISCIPLINE AT BANK

In the bank if an employee alleged to be guilty then the management takes


following proceedings:

EXPLANATION LATTER

Alleged employee is issued an explanation letter in which he is demanded to clear


the allegations against him.

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ENQUIRY

If employee fails to clear allegations an enquiry commission is settled that report


regional controller (administration).

PUNISHMENT (IF ALLEGATION IS PROVED)

If allegation is proved then anyone or more of the following punishes the guilty:

Dismissed from duty


No Increments
Degrade by one or two levels
Suspension

APPEAL RIGHT FROM EMPLOYEE

An employee can appeal against the grievance. For this purpose government has
established two institutes where the appeals of the employees are entertained
against the decision of management.

WORKING WITH UNION

Allied bank has an employee union. The union according to the employees is
responsible and working smoothly with higher management. While management
thinking is against them. According to higher management Union effects
adversely on the bank especially when bank was fully owned by government.
They employ their relatives and affect the process of recruitment.

HOW HRD MANAGE UNION

Management at Allied Bank is managing Union by transferring the proactive


members of the union constantly from one place to another.

Secondly management supervise all the activities closely in which role of union is
strong so that there should be no element of unrest among the employees

As a whole the role of union in the bank is under control and management is
successful in managing the union but the steps taken by the management

SAFETY HEALTH AND ENVIRONMENT


Allied Bank is a servicing organization and has very low standard of “SHE”. How
ever bank maintain the safety by appointing security staff at each office of the
bank. Bank has the policy to compensate the employees who died or face
disability during the job.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

SECTION 2

STUDY TO BRING CHANGE IN HUMAN


RESOURCE MANAGEMENT OF THE BANK

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

A STEP TOWARD CHANGE

Allied Bank of Pakistan is huge organization with employees


over 8000. After studying the Human Resource
Management system of the bank that is dealing with such
number of employees we find pitfalls in the system and in
some areas there is no contribution from Human Resource
Management.

Infect Allied Bank is one of the largest banks of Pakistan and


the Human Resource Management of such a huge
organization cannot be formulated in short period of time.
This practice required a consultancy firm and lot of time. In
the following pages we are highlighting and discussing the
matters of core importance that a Human Resource
Management system should contain.

What we think is that the suggestions and discussion areas in


the proceeding pages will act the base stone to the change in
Human Resource Management of Allied Bank after its
privatization.

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FRAMEWORK OF HUMAN RESOURCE DEPARTMENT

Currently Human Resource Division and Administration Division and is working


sight by sight. It is the common thinking at the bank that Human Resource
Management and Administration are the same things and the different names for
the same job. Bank is operating in many fields of Human Resource Development
but still there is room for development. Following are the areas that we think that
Human Resource Department should cover.

STRUCTURAL CHANGE IN HUMAN RESOURCE DIVISION

SEPARATION OF HUMAN RESOURCE DIVISION FROM


ADMINISTRATION DIVISION

First of all it is needed that Human Resource Department should be separated


from Administration Department to make the Human Resource Division
specialized and full functioned department.

CHANGING HIERARCHAL STRUCTURE OF HUMAN RESOURCE DEPARTMENT

Current structure of Human Resource Department is bureaucratic and involves


different lines of officers. In such type of system communication became
inefficient and the proceedings of the official matters becomes slow. To avoid
such inconvenience Bank should introduce flat organization concept in all the
departments especially in Human Resource Division to make it proactive.

HUMAN RESOURCE FUNCTIONALITY


FORMULATING SOLID HUMAN RESOURCE STRATEGY

Currently Human Resource Division is mainly concerned with the employees


related matters while other responsibilities of Human Resource Department like
implementing corporate policies, molding employees to achieve organization’s
goals, making possible an efficient communications between employees etc

Human Resource Division of the bank has to realize that Human Resource
Management is not just the name of hiring, downsizing and managing people.
Human Resource Division should have the structure and policies to communicate
the goals of organization to employees, build a structure to implement corporate
policies effectively, creating a decent and prestigious environment in the bank to
build relaxing feelings for the employees. In this context Human Resource

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

Division can be proactive provided that after privatization efficient Human


Resource professionals be hired.

EQUAL OPPORTUNITIES
Bank is in much better position among the other governmental organization in
the scenario of equal opportunities. But still bank has the area in which there is
room for further development. This are is:

ADJUSTING EMPLOYEE WITH DISABILITIES

Currently bank has 2%-3% employees with disabilities. It is the matter of fact that
disables can also work efficiently if they are provided equal opportunities. So it is
needed that disables should be adjusted more than currently employed.

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SYSTEM FOR STAFFING

Bank is now going to completely privatize. In the near future it is foreseeable that
new management would hire new workforce. So that it is required patchwork to
smoothen the staffing function of the bank to hire professional and sincere
employees in future. What we think is that bank should leave the traditional
system of hiring. In the new hiring system following elements should also kept in
mind:

• Selection should not be taken only on formal interview. It should follow by


different test of personality, and professional skills to avoid the shocks that
bank has suffered in the past.

• In the past bank has not emphasizes much on socializing the employees. It
is required that each and every employee should be known to banks
policies, procedures, and performance expectations.

PERFORMANCE APPRAISAL
In the bank we observe that Bank has the pattern of performance appraisal that is
too old and the document that used for appraisal is too long, boring and is of
repetitive nature. In the modern environment of business performance appraisal
form should be concise and meaningful.

We suggest that Allied Bank should change the performance appraisal form. In
this regard we are providing a performance appraisal form that is originally taken
from American Book but still applicable in Pakistan except few exceptions

RULES REGARDING PERFORMANCE APPRAISAL


OPENNESS OF REPORT

In the bank it is the rule that ACR of an employee is kept confidential and he
don’t know anything about his report. I our opinion an employee should be
disclosed his annual report so that he can check his performance himself in spite
of issuing warning letter during the year.

PERIOD OF PERFORMANCE CHECK

Secondly bank management should check the performance semiannually to keep


updated about the performance of employees.

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This form is taken from An American book. However it could be a


base stone for designing new performance appraisal form

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APPRAISAL FROM CUSTOMERS

Banking is the business that is directly related to general public and an employee
can be judged by the appraisal from customer. This practice will increase the
accuracy of performance check as well will improve the behavior of employees
with general public.

TRAINING MATTERS
Currently bank is operating two training centers and is spending lot of money on
it. But the results are different from what they should be. The behavior, working
speed, personality and other attributes of the employees are not seem to refined
as they should be as professional of a big bank.

Another issues is the use of technology. We observe that there are computers in
many locations of bank but still employees are using traditional file systems. The
computers were showing screen savers and employees are busy to tie and open
the strips of huge files. It is happening where IT department is working.

In these conditions we suggest that there should be full utilization of resources


and especially computers should be used effectively. Our suggestion will be
fruitful when training of the employees will be done in new ways and to introduce
them with the new facts of international baking environment and the role of
technology there. We also suggest that employees should be trained intensively
about information technology periodically in a year.

CAREER DEVELOPMENT
Bank currently has no policy for the career development of the employee.
Similarly employees are not initiative enough to request the bank in this are.
Infect this function of Human Resource Management is not present in the bank.
Our suggestion is:

Career development is the area where by emphasizing’ the workforce of the bank
will be more productive and efficient. For this purpose bank has to realize that if
an employee will improve his skills or education on the expenses or resources of
the bank’ he will pay them back in form of good business and progress. So there
should be allocation of resources for the career development of employees.

However bank has to take care that:

• There should be no exploitation of resources by the employees behind the


stage.

• Employee will capitalize his skills that he getting on bank’s resources.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

• There will be no political activity will be held by union to utilize the


resources in negative ways.

COMPENSATION
The structure of compensation is same as many governmental organizations and
most part of the compensation are almost like fixed part of pay. What we suggest
in this area is that:

• Compensation is one pf the basic rights of the employees but it should be


strictly linked with the performance of the employees. When an employee
know the fact that now he will get for what he will struggle then he will
work with more motivation and efficiency.

• A system that determines the points for each job will be suitable scale for
compensation.

But it should be cared that

The policy should be open to all employees to eliminate the factor of no


confidence from employees on the system.

COMMUNICATIONS
Allied Bank has network in all over Pakistan and in the organization like Allied
Bank bureaucratic style of management is not appropriate. The gap of
communication (i.e. the employees of the bank are not known to mission
statement and there is no vision statement on the official documents) Allied Bank
is facing might be due to this type of governance. We suggest that:

• Allied bank should decentralize its system of management and introduce


the flat organization system.

• Bank should use its technology resources efficiently and the IT division
should have strong communication with Human Resource Division to
provide modern communication system throughout Pakistan.

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BY SALMAN SARWAR A PROJECT REPORT ON ABL

CONCLUSION

Allied Bank is oldest Bank of Pakistan and had shows great


development till nationalization of industries of Pakistan in 1970s. It
is hard luck of Pakistan as well as for its industries that
nationalization put adverse effect on them.

Allied Bank was one of those victims and suffers depression till 1991.
After partial privatization of bank it shows growth and get much
better position among the banks of Pakistan. But still bank is facing
difficulties.

Bank has the potential to grow up and to appear as the major player
of Asia if Human Resources of the bank will be utilized at its peak
level. Just structural changes in Human Resource Division of the
bank will impact rest of nine departments. Of course it will be a
turning point for the bank and bank will enjoy prestigious status in
the banking industry.

The fate of Bank is not to face recession for long period of time but to
glitter as the pride of Pakistan. We are looking this status of the bank
in future, as the new team will manage the bank after short period of
time.

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