BANK ALFALAH

INTRODUCTION AND BRIEF HISTORY

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group. Bank
Alfalah was incorporated on June 21, 1997 as a public limited company under the Companies
Ordinance 1984. Its banking operations commenced from November 1, 1997. The bank is
engaged in commercial banking and related services as defined in the Banking companies
ordinance, 1962. Bank Alfalah is the 6th largest bank of Pakistan with 471 branches.

Since, its inception as the new identity of H.C.E.B after the privatization in1997, 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 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 Travelers, 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.

The Bank provides financial solutions to consumers, corporations, institutions and governments
through a broad spectrum of products and services, including corporate and investment banking,
consumer banking and credit, commercial, SME, agri-finance, Islamic and asset financing.

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 its customers. The Bank looks
ahead with optimism at the future. It aims to continue investing in its core strengths to provide
best in class products and services to its diverse range of clients.

VISION
To be a premier financial services organization, operating both locally and globally, offering a
complete range of financial products and services to diverse segments under one umbrella.

1
MISSION
To develop & deliver the most innovative products and deliver exceptional service quality which
contribute to strengthening brand equity strength and maximize value for the stakeholders of the
Bank.

CORE VALUE
Integrity, Professionalism, Service Excellence, Social Responsibility, Marketing knowledge,
Reasonable Returns, Diversification, Risk Management.

GOALS AND OBJECTIVE

Goals and objectives are factors through which the companys devotion and commitment to the
job can be seen. If the goals are realistic and achievable, than surely that organization is doing its
job. Bank Alfalah also has certain goals and objectives which it is trying to achieve, through its
various strategies and operations. The goals and objectives are mentioned below:

To create sound base, and through efficient systems achieve modern b

anking throughout Pakistan.
By the end of every accounting year there is an increase in deposits.
To create unit banking network in all the branches of Bank Alfalah, the
end of the year. This means that all the operations of the bank, i.e.
deposits to advances, imports, exports, L/C Opening, foreign currency
and many more aspects under one roof, so that the customer can
be facilitate in one visit.
Islamic Banking is one of the goals of Bank Alfalah though it has been
initiated in the last fiscal year and it is very acceptable for general
public. However, there is lot of work to do for successful
implementation of the Islamic Banking Plan. In this regard the Bank is
opening specific Islamic Banking Branch under the supervision of its
Islamic Banking Division.

How Alfalah Bank is working

Alfalah Bank believes in parallel prosperity of the company and the employees. Our practice is
to inculcate a sense of responsibility in employees at all levels, enabling them to realize their true
potential. Alfalah Bank stretches our people to the hilt, knowing that the challenges on the way
make them stronger as professionals as well as individuals. We acknowledge and appreciate the

2
individuality of every team member at the Bank, providing each with a stimulating environment
to prosper and grow.

Innovation
Alfalah Bank welcomes out-of-the-box ideas and encourages our employees to think on various
tangents. Alfalah Bank believes this gives the kind of fresh perspective to things which enables
us to stand out amid the crowd and edge forward.

Enthusiasm
Determination and perseverance at a routine job, a new project or a crisis situation demand high
energy levels and this is what Alfalah Bank expects from their team members.

Passion
Alfalah Bank advocates the thought that only when an idea is strongly believed and ardently
pursued, chances for its success grow exponentially. It is this passion and perseverance that
Alfalah Bank looks for in our potential resources.

Integrity
Bank Alfalah promotes and practices transparent and honest work behavior for all its employees.
The sense of responsibility inculcated in every member of the organization demands and
impeccable and intact work ethic system.

Commitment
Bank Alfalah believes loyalty and care go hand in hand. Our employees who display an
unwavering level of commitment towards the Bank are the ones who are valued the most.

Overall Organization analysis of Alfalah bank

The bank is currently operating in every city of Pakistan and has been successful during the year
on the further mobilization of resources by attracting low cost and stable deposits. Bank Alfalah
has shown remarkable progress in their operations within these few years. Despite notable
economic uncertainties, the banks financial strength has greatly enhanced during the recent

3
years. The successful expansion program has proved the banks capability and commitment in
comparison with the competition in the industry. The bank has increased its branch network a lot.

In future planning bank continues to maintain positive and healthy liquidity and want to
maintain good relation with its customers. There target is to first leading bank in Pakistan. Bank
Alfalahs objective has been to expand its branch network to meet its clients needs. The banks
strategy is to maximize the synergies of branch network through an optimal allocation of
financial, human and other resources in order to meet the dynamic challenges of present financial
environment.

Human resources department analysis

Bank Alfalah believes that humans are their most valuable assets. In the pursuit to impart sound
technical skills to their staff, the Training and Development Center continues to offer programs
in several skill areas. The banks training and business philosophy is geared to provide
professional, personalized and efficient services to the clients at all times. They gave utmost
importance to its human asset base.

Hierarchy Structure of Alfalah Bank

4
ECOGNVPASeMBS xrlsionasfuencarariecsnhokuitcrdesa lrnhinteEAVvslgrxen iGtVd c iaru laet isd vtP ea r fIe ,s i d e n t
AVbdSIP(eM. Croyst.sP,aanIeE ifssOIitageda ) ne nt rs t
HRM Department & Bank Alfalah

HRs Definition at Bank Alfalah:

We Are Struggling For People
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.

5
History of HR Department in Bank Alfalah

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group. Bank
Alfalah was incorporated on June 21, 1997 .When this bank established, there are lack of
mismanagement in this service sector and a lot of problems facing them but after 3 years of
establishment, HR Department of Bank Alfalah is fully activated in year of 2000.As it is working
insignificant in the sector but not fully aware of the market challenges and the market trends as
the with the passage of time and challenges they fully in control in the year 2000.HR department
play a vital role in Bank Alfalah . Human Resource Management is important for banks because
banking is a service industry. Management of people and management of risk are two key
challenges facing banks. How you manage the people and how you manage the risks determines
your success in the banking business .It is a common complaint among bank executives that
skilled manpower is in short supply, and the same problem facing this bank but after the creation
and foundation it will resolve the problem very quickly. Human resources professionals in banks
must go the extra mile to recruit the best executive talent in the banking field, allowing their
organizations to thrive and grow into the future. You need to manage the people and for this
you need to discriminate between the people, I mean positive discrimination. The entire spectrum
of HR practice requires revolutionary changes if the banks have to survive. Managing the people
is the key challenge. Training is needed in virtually every business and industry because every
service sector has its own policies and procedures employees must follow. It is HRs
responsibility to figure out how to conduct the training so that operations are not interrupted or
strained. Human resources departments must design and monitor work processes to reduce
opportunities for internal theft and collusion. In the past at Alfalah bank there is event that an
employee attempts to steal from a bank, the HR department must handle the legal paperwork and
administrative processes required by court proceedings. HR professionals in banks have a hand
in making decisions for pay raises and promotions. Bank workforces are unique in that they often
have two methods of paying employees: salaries for back-office and other personnel, and
commissions for sales employees.

Hierarchy of HR Department

6
 Mudasir Aqil

GM HR

M.Qasim(H Mr.Anwar Mr.Usman(M Ms.Alia(Sr. Mr.Umer Mr.Amin

RM North) Khan gr HR) Mgr HR) (Rcr. Mgr) (DGM HR)
(AGM
Mr.Ismet Mr.Noor Mr.Danish
Special Mr.Hyder(A
(AGM) (Ass.HR) (Ass.Mgr)
Pro) Mr.Farhan( GM)
Officer
Mr.Asghar( Mr.Ch Mr.Ammar Batch
Mgr OPS) Asad(Pt.Sup (Officer Hr Mr.Ghulam
Recruitmen (HRMSout)
portal) Rel Mgnt) t)
Mr.Rizwan(
Mgr Mr.Iqbal
Ms.Sana( (Mgr. PF)
Personal)
OEC)
Ms.Shahla
Mr. Zulifiqar Mr.Hassan
(Mgr RCR)
(Mgr (Officer Pre)
Discplinary Mr.Jahnzib(
Action) Mgr.MIS)

Mr.Danish
(Mgr PFM)

Mr.Rao (Dis
Action)

7
Total Number of Employees 2001 To 2014

9000
8178
8029.5
7883.7
7740.55
8000 7584
7371 7600
7462
7000 6543
6000
5218
5000
4000 3352
3000
2133
2000 1504
959
1000
0

8
Designations/ grades distribution in bank Alfalah

In bank Alfalah the grades are divided into different categories and ranges, the ranges include the
following designations which are discussed in this table

RANGES DESIGNATIONS
Range IX CEO, President, GM, Group Head
Range VIII Regional manager, Heads
Range VII Area manager, supervisors
Range VI Branch manager, Senior manager
Range V Branch manager, manager, operation manager
Range IV Assistant manager

Range I-III Officers

Span of control at Alfalah bank

The number of subordinates that a manager or supervisor can directly control. In other words we
can say that how many workers work under one manager. At bank Alfalah the span of control
varies at branch level and at head office level. In branch under one manager the minimum
workers are 6 and maximum are15-20 and this is depend upon the size of the branch and in head
office under one manager there are minimum 5 workers and maximum 25-30 workers and in
head office major part of work is done in teams.

Chain Of Command in Bank Alfalah:

In Bank Alfalah information flows from CEO to employees and from employees to CEO. As
well as communication takes place among employees on the same level. This includes
Downward, Upward and lateral communication respectively. When information flows from

9
President (CEO) to Senior Executive (VP) and from Senior Executive (VP) to Executive (VP)
and so on towards Clerical Staff this is downward communication and vice versa is upward
communication. When information is exchanged between the employees who are working at the
same level in the organization then this is lateral communication.

HR Software used by Bank Alfalah:

For conducting HR activities they are using HRMS-II software within the organization. This
software has the following features which enable a vast range of HR activities.

Manage all aspects of Human Resource management.

Easily define job categories, skills and requirements.
Define and set pay categories and scales.
Organize and keep track of employee personal information.
Allow employees to update and view their own personal information.
Manage your employee Leave (such as, leave entitlement, balance and history).
Manage your employee benefits.
Manage your employee recruitment.
Create and distribute reports.

Replacement charts at bank Alfalah

At bank Alfalah there is succession planning and they do succession planning internally and
externally. When there is a proper person who suits with the designation and is working in the
organizations they selected them internally for the designation and if no one suits with the
designation they go for the external selection and mostly for this selection recommended
candidates were selected on the behalf of board of directors, chairman.

Major functions of HRM department at Alfalah bank:

Human resource planning
Recruitment of employees
Selection of employees
Training of employees
Performance Appraisal

10
 Managing wages and salaries
Providing incentives and rewards
Methods of downsizing
Leave policies

Process of Human Resource Planning of Bank Alfalah:

The following diagram shows the process of HR Planning:

Organizations strategies and plans

Human resources Human resources

requirements availability
11
 Assessment of Human Resources
need

Action Planning

Monitoring and Controlling

Step 1: Analysis of the Plans and Objectives of the Organization:

Bank Alfalah is clear about its objectives and strategies. Its policies such as profitability,
financial plans, production targets, market forecast and budget etc are always based upon and
related to manpower planning.

Step 2: Analysis of Human Resource Requirement (Demand):

This step involves forecasting HR needs based on organizational objectives. Bank Alfalah
considers several factors while forecasting demand. Factors like objectives of the organization,
requirement of work force i.e. how many human resources are required for the achievement of
organizational objectives, the cost of labor, and environmental factor like technology and social
norms are crucial for demand forecasting.

Step 3: Analysis of Human Resource Availability (Supply):

In step three, Bank Alfalah checks the current position of their employees that how well they are
doing the existing programs and then forecast what additional programs they can do. This step is

12
the analysis of the present resources such as internal HR supply, external HR supply, analysis of
the human resource utilization etc.

Step 4: GAP Analysis:

After doing the demand and supply analysis there may become three situations. First situation:
demand may become equal to supply so no actions are needed in this situation. Second situation:
there may be surplus of workers so in such a situation steps like early retirement, restricted hiring
and downsizing are appropriate. Third situation: a shortage of employees may arise so in such a
scenario process of recruitment and selection should carry out.

Step 5: Human Resource Planning:

This step involves developing a strategy or plan to meet the organizational human resource
needs. Bank Alfalah needs to prepare such a plan which removes the Gap between demand and
supply within the financial resources available to them. This should ideally take the form of
comprehensive human resource plan with various dimensions, such as organizational structure,
recruitment & selection, training & development, promotion, staff reduction, retrenchment etc.
So at that time not all the elements may require, only the prior matters then be incorporated into
plans.

Step 6: Monitoring & Control:

This is the final step in which all the process is reviewed and then takes some corrective steps
where necessary. This step also ensures that HR planning is going according to the organization
strategic plan and matches the demand and supply.

Recruitment process of Alfalah Bank

Like all other well reputed organizations bank Alfalah has a typical system of employee
recruitment and selection. Employee recruitment begins with first the clear specification of the

13
number of employees needed through human resource forecast and work utilization analysis and
second when they are needed. The Bank Alfalah adopts the recruitment period which also called
Recruitment pipeline. Recruitment pipeline means the duration between the receipts of resume
and the time of new hire start work.

From To Days
Resume Invitation 5
Invitation Interview 6
Interview Offer 4
Offer Acceptance 7
Acceptance Work Report 21
Total 43

Sources of recruitment
Following are the some sources of Job Recruitment in Bank Alfalah

By Website
By Newspapers

Recruitment Process:

Following are the recruitment processes in Bank Alfalah:

Assess need (strategic planning and tactical planning)

Create a pool of candidates
Screen out candidates
Make selection
Evaluate recruitment process

14
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.

Create a pool of candidates:

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

Screen out candidates:

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

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

Evaluate recruitment process:

Alfalah bank evaluates effectiveness of recruitment by comparing the results to expected results.

Types of recruitment
There are two types of recruitment in Bank Alfalah:

Internal
External

Internal:
Includes recruiting of already existing employees for new jobs within the organization

15
 External:
Includes bringing new blood in an organization. Recruiting people who are new

Internal Recruitment In Bank Alfalah

Bank Alfalah normally

Less emphasis on Internal Recruitment

Existing employees can respond to new job offers as externals

External Recruitment in Bank Alfalah

In Bank Alfalah external recruitment is on

Need basis

No yearly or monthly recruitments

Every branch has its own HR department

Head office sanctions recruitment for new employees

Adds in leading newspapers (Dawn, Jang)

College Recruitment (under planning)

Online application forms

Direct Induction of Fresh candidates

Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate
candidates for its organization and the process is as follows

Direct Induction of fresh

candidates

Applications CVs Dropped at HRO CVs Dropped at

through16
Websites Concerned Branch
 Final Interview

Preliminary Interviews

Written Test (If Required)

Experienced Professionals

17
 Based 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:

Experienced Professionals

Applications CVs Dropped at CVs Dropped at

through HRO Concerned Branch
Websites or Division

Preliminary Interview

18
 Executive Recruitments:

Range I In Bank
III Alfalah, Executive recruitments are done by CEO.
Written Range IV & Panel
Test Interviews
Selection Process of Bank Alfalah:

This is a simple flowchart of how Bank Alfalah executes its selection but the actual working is a
more complex and detailed which is described below for providing a detailed understanding of
the selection process and the efforts undertaken by the human resource management in selecting
a person for a job. This requires resources such as time, skills, energy and cost. Follow the details
below for clear understanding.

Types of Selection
1) Recommendation based for experienced staff
2) Badge Hiring for fresh staff

Experienced people can be selected on basis of recommendation but fresh candidates are only
selected on basis of passing tests and interviews.

19
Training of employs
Following are the basic steps in training employees in Bank Alfalah:

Need Analysis

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

In Bank Alfalah Ltd. the process of Training and Development consists of various other activities
like:

I. The appraisal form of an employee indicates the areas in which the employee should be
trained and developed. It also elaborates the abilities of an employee
II. Management and Organization Development Division of each region timely reviews the
employees and recommends them for training during the operations it they note any
discrepancy between the desired and actual performance. This review is performed after
every quarter.
III. Upon the request of GM (Operation), indicates which sort of training is needed in a
particular region regarding the Operation Support and Service

Training and Development of the employees is the most important aspect that should never be
neglected. In Alfalah bank there is a specific technique used for training and development of the
employees. Before starting training and development needs one must assess the training needs.

Training Need Assessment:

Assessment means planning as a foundation for the entire training efforts. The purpose of
assessment is to define what the employees should learn in relation to desired job behavior. It has
three level of analysis to determine the needs that training can fulfill. Every employee in the
bank will be trained regarding job requirements. For instance the marketing staff is trained &
controls the market. The cashier is trained to handle the cash. The bank manager is trained to
manage the staff and make policies to increase deposits and financing.

Performance appraisal system:

20
The performances of employees are appraised yearly at Alfalah Bank. HR head said that

Performance appraisal helps us in estimating employees current performance, setting work

standards and then providing feedback to employees with the aim of eliminating performance
deficiencies.

Performance Appraisal Process:

It is a structured discussion between employee and supervisor. It provides an opportunity for the
supervisor to recognize an employees achievement, offer suggestions for improvement when
needed, discuss job responsibilities, define objectives, counsel for career advancement, and
justify a pay adjustment.

Bell curve system of appraisal is a forced ranking system imposed on the employees by the Alfalah
bank management. Forced ranking has been defined as a workforce management tool based on the
premise that in order to develop and thrive, company must identify its best and worst performers.
Alfalah bank follows this Bell curve system; it rates the entire workforce by comparing the
performance of engaged in similar activity and ranking them on the basis of their performance. The
entire workforce is segregated as the top performers, medium performers and the poor performers.
The percentile varies with company policy; it could be the top 10%, middle 80% and the bottom
10%.
The employees in the Alfalah bank belonging to the higher grade contribute significantly to the
enterprise. They are showered with rewards like restricted stock options, bonuses, etc. so as to
motivate them to continue their excellent services to the business entity. The middle percentile
employees are significant in number and their presence ensures continuous work flow within the
organization. They generally have some weakness which is negated by the training facilities
offered by the company. The bottom ranking consists of those whose performance needs
significant improvement and whose is unsatisfactory. The ranking acts as a warning system that
tells the employee where he stands in relation to his peers. The employees belonging to the lower
levels are at times given the opportunity to improve their efforts or are renounced from the
system. The bell curve system of appraisal provides the momentum to the employees to push
them forward, aiming higher. It is assumed that the bottom performers are replaced every year on
account of their unsatisfactory performance by fresh talents who can add up to the output of the
organization. Some companies take bell curve rankings a step farther and require managers to
classify employees on a curve. Other companies use the normal curve to "calibrate" rankings
across business units or line managers.

Incentives and rewards at Alfalah bank:

21
There are three basic types of compensation Gross pay, Benefits, Reimbursements. Pay is the
cash reward.

In Bank Alfalah, compensation plan for employees includes:

Basic Salary
Bonuses
Medical Facilities
Allowances

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.

If an employee or his/her dependent avails treatment in a Non-Panel Hospital, first he/she will
have to incur the expenses from his/her own pocket, then the claim for reimbursement will be
submitted within 30 days after discharge from the Hospital. The Insurance Company will
reimburse the claim in accordance with their discounted rates with network hospitals. So there is
a possibility of not receiving full claimed amount

Following documents must be enclosed with completely filled in Claim Form

i. Hospital Receipt/Bill
ii. Discharge Certificate/Report
iii. Doctors Prescription
iv. Cash Memos regarding purchase of Medicine
v. Clinical Summary

Downsizing at bank Alfalah

Reducing the size of a company by eliminating workers. At bank Alfalah there is no downsizing
up till now. The general methodology is used that if they found a worker whose performance is
comparatively low they first issue them a warning letter, and if the employee performance
remains the same then they issue the second letter of warning and after wards they simply asked
that employee to give a resign otherwise they terminate that employee.

Leave policies at bank Alfalah

22
Every organization has different policies regarding the leave policies, at bank Alfalah the
following leave policies are as follows

Casual leave are 10, sick leave are 8, and privilege leaves are 30 in a year and sick leaves are
double to 16 days if the employee is sick.

Employee Advocacy:
We are not 100% following the employee advocacy said Muhammad Danish the Assistant HR
Manager. We follow all the laws which State Bank regulates. In our organization the minimum
salary of the employee is 12500 which are according to the labor law in Pakistan. We make
amendments in the labor laws according to the need of our organization.

Problem Faced by HR Department in Bank Alfalah:

Muhammad Danish the Assistant HR Manager of Bank Alfalah states that this is the confidential
information and I am not allowed to reveal it. But our target is to launch 100 branches every year
and for this we need intensive recruitment which is very difficult task for the HR department to
recruit large amount of employees with better skills and who is beneficial for our organization.

Recommendations
Alfalah bank human resource system is working well as such there is no any complex problem
but Muhammad Danish told us that at the time of recruitment we face some problems because
we have to do huge and intensive recruitment so as recommendation we recommend for this
problem that target recruiting resources more effectively to reach a broader pool of applicants,
revise recruiting and testing practices, and gave a response to all eligible candidates.

Conclusion
The economy of the country is booming and with the investment favorable policies and their
smooth implementation, the role of banks in todays economy have become an important one.
Since Alfalah bank establishment it has aimed to become the leading bank of Pakistan by that
provides outstanding services to its customers and also maintaining the good relation with its
employees. Now a days Bank Alfalah is the leading bank in the banking sector in the Pakistan
which is practicing the effective performance management system. Thats why they have the
happy employees which in-turn bring succeed to the organization.

23
24
25