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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).
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.
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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
pay homage and gratitude to my beloved parents who always dreams for his son to be a
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
SECTION 1
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
President
Director Director
Director Director
Director Director
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Vice President
OG 1 OG 1 OG 1 OG 1
OG 2 OG 2 OG 2 OG 2
OG 3 OG 3 OG 3
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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.
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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.
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
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.
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”
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.
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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:
FINAL EVALUATION
• General reputation
• Living style and social life
• Moral and professional integrity
• Leadership qualities and administrative capability
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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
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
DESIGNATION/ NATURE OF
PERIOD PLACE OF POSITION POSITION HELD ASSIGNMENT
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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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:
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
Date:_________
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
FINAL EVALUATION
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
MARKS
1. Outstanding 4
2. Very Good 3
3. Good 2
4. Average 1
5. Below Average 0
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.
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
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
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.
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.
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
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.
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
EXPLANATION LATTER
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
ENQUIRY
If allegation is proved then anyone or more of the following punishes the guilty:
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.
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.
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
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
SECTION 2
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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
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:
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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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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:
• 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
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.
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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.
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.
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BY SALMAN SARWAR A PROJECT REPORT ON ABL
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:
• A system that determines the points for each job will be suitable scale for
compensation.
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:
• 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 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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