ORGANIZATIONAL BEHAVIOR FINAL REPORT

GROUP MEMBERS

SUBMITTING TO: MISS UME SUMMAYA

INTERVIEW CONDUCTED FROM

Mujeeb ur Rehman

Regional Head

Special Asset Management (South-II)

M. Mustafa Kamal Khan

Manager/Coordinator
Block-9, Kehkashan, Clifton, Karachi

1.1 Executive Summary

This report provides an analysis of our visit to the Askari Bank that gave us an opportunity to see
what an organization looks like and how operations take place in an organization. We visited the
Clifton Block-9 branch and took interviews from two of the employees. During our visit we found
out that the organization had a clan culture. Since the bank is owned by the Army, the employees
told that discipline is a very major factor of this organization. Every employee understands each
other. 60% of their communication and records are done online and 40% are done through
circulars and file records. However informal communications is done verbally. The bank uses
centralized management so there is no or few involvement of the employees in decision making.
If any employee violates the laws the HR department has to take an action against him/her. Since
it is an organization owned by army, discipline is a key factor. Being punctual should be
everyone’s priority. Every organization has politics so does Askari bank. If there is any conflict
between the employees the interviewee tries to personally talk to them and manage the conflict.
If there is a change the employees first analyze if the change is positive or not. Usually employees
do not resist change if it is positive, if there is any negative change then here is a 40% chance that
employees will resist.

1.2 INTRODUCTION

BRIEF HISTORY:

Askari Commercial Bank Ltd. (ACBL) was incorporated in Pakistan on October 09 1991, ACBL
commenced its operations in April 1992, as a public limited company, and has since expanded
into a nation-wide presence of more than 50branches, handled by the human capital of more
than 1600 employees and has lowest turnover in Pakistani Banking Sector. The Bank is listed on
the Karachi, Lahore & Islamabad stock exchanges and the initial public offering was
oversubscribed by 16 times. ACBL is principally engaged in the business of banking as defined in
the Banking Companies Ordinance, 1962. As at December 31, 2002, the Bank had total assets of
PKR 70.313 billion, with over 250,000 banking customers. ACBL has a Correspondent Bank
Network in more than 95 countries with about167 banks. ACBL is the only bank with its
operational Head Office in the twin cities of Rawalpindi-Islamabad, which has relatively limited
opportunities as compared to Karachi and Lahore; this created its own challenges and
opportunities, and forced us to evolve and outward-looking strategy in terms of our market
emphasis. As a result, ACBL developed a geographically diversified assets base instead of a
concentration and heavy reliance on business in the major commercial centers of Karachi and
Lahore, where most other banks have their operational Head offices. In 2013, it was taken over
by the Army of Pakistan and since then it is owned by the Army and is known as Askari Bank
Limited (ABL).

MISSION STATEMENT:

To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource management in a
modern and progressive organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stakeholders, and contributing
to society.

1.3 THEORITICAL NOTIONS

ORGANIZATIONAL BEHAVIOUR

Actions and attitudes of individuals and groups toward one another and toward the organization
as a whole, and its effect on the organization's functioning and performance. Tells us how to act
on a very well way and to perform things according to its behavior.
OB MODEL

The OB Model consists of 3 levels, they are:

1. Individual Level

2. Group Level

3. Organizational System Level

• Individual Level:

Singular dimension is an exceptionally unpredictable dimension and the underlying one. As each
individual has his own brain science and method for managing issues and circumstances, it's
necessary to take choices that are acknowledged by every single worker of the association.

Askari Bank perceives its representatives as the prime resource and the key supporters of the
execution of the Bank and places extraordinary accentuation on the fascination, improvement,
inspiration and maintenance of workers. Despite the fact that work in an exploration, for
example, enhancement in representative fulfillment and inspiration is a progressing procedure
and more is to be done in such manner. Amid the year 2009, preparing and advancement group
of the Bank proceeded with its interest for quality preparing of the Bank's staff in accordance
with affirmed preparing strategy. Preparing objectives were resolved in light of very much
characterized preparing need appraisals (TNA) methods as conceived in the in general key
arrangement of the bank. The reason for preparing is to keep representatives abilities and
capacities a la mode which goes about as an inspirational device and builds their resolve. The
present evaluation framework depends on worker execution and commitment towards
accomplishing the Banks objectives and targets.

• Group Level:

Group level is when 2 to 3 individuals work under one leader as a team, and together they have
a plan of achieving the destined goals. Leader ship is an important factor and when it comes to
leadership the main thing directed by it is decision making. When it comes to groups, conflicts
exists too. To have the conflicts avoided, a proper organizational structure and policies are
supposed to be there. The decision of teaming up the right people together is essential as well.

The leadership style is basically Autocratic in the Bank because the board members have the
centralized authority to make decisions and dictate methods for how the things to be done. This
autocracy has a touch of democracy as well, as senior management at times consults the
employees in decision making but makes the final decision itself. The Bank values its employees
and therefore it has included Leadership Development Programs for the senior management of
the bank.

• Organization System Level:

The level at which, rules, regulations, policies and strategies have been set up. It counts to focus
on how people are coping with the job demands and what is the response the organization has
towards it. It is to light your attention on job satisfaction of employees, turnover, power and
politics, change and development of the organizational structure. It counts in managing the
competition as well.

The board members have all the Power because they have the supremacy to decide variable such
as hiring, firing, discipline, promotions, salary increases, new product development and
downsizing etc. The source of their power is their rank, position and competence. As far as politics
is concerned, it feeds on conflict which arises due to the limited resources in the organization. As
board members have the supreme power they are the ones who allocate resources to various
divisions, so the role of politics fails here. But it is a reality of organizations and does exist
between individuals, groups and divisions.

ORGANIZATIONAL STRUCTURE

An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. These activities can include rules, roles and
responsibilities. The organizational structure also determines how information flows from level
to level within the company. Askari Bank Organizational Design is bureaucratic because it is
primarily owned Askari Bank has a functional structure where jobs are grouped into units
according to the skills, abilities and work activities of the members of the Bank.by the army and
its working methods are directed by the board members of the bank.

ASKARI BANK LTD ORGANIZATION STRUCTURE CHART:

GROUP COHESIVENESS

Group cohesiveness is one of the characteristic features of the groups, which is very important
from behavioristic point of view. Cohesiveness is the degree to which the group members are
attracted to each other and are motivated to stay in the groups. Cohesiveness defines the degree
of closeness that the members feel with the groups.
Employees are very much concerned about each other and there is a very comfortable
environment in ABL Clifton block-9 Branch.

ORGANIZATIONAL COMMUNICATION

Organizational communication is a process through which people construct, manage, and

interpret behaviors and symbols (whether verbal or nonverbal), both intentionally and
unintentionally, through interaction (mediated or direct), within and across particular
organizational contexts.

ORGANIZATIONAL CULTURE

Organizational culture includes an organization's expectations, experiences, philosophy, and

values that hold it together, and is expressed in its self-image, inner workings, interactions with
the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid.

ETHICAL VALUES

The intrinsic core values that are corner stones of our corporate behavior are as follows:

Commitment

Integrity

Fairness

Teamwork
1.4 PROBLEM

The problems discussed by the employees were:

1. Individual differences has a strong impact on the organization’s performance due to

wrong criteria of selection of employees. With the passage of time individual differences
start increasing which undermine the goodwill of the organization.
2. 60% of the data has been shifted to online database. They want to get rid of the excess
files and want the other 40% to shift to the online database as well. There are a lot of files
in the offices.

1.5 OBJECTIVES:

In only 1 hour and 15 minutes, it is very difficult to understand each and every aspect of bank.
Due to the barriers of limited time & space, the objective of work is usually confined. However
the study of ABL will help the management to identify their weaknesses and threats and
overcome them by using their strengths and capitalizing on the opportunities. Following are the
objectives we found written in one of the corridors of Askari bank Clifton Block-9 branch.

 To achieve sustained growth and profitability in all areas of business.

 To build and sustain a high performance culture, with a continuous improvement focus.
 To develop a customer service oriented culture with special emphasis on customer care
and convenience.
 To build an enabling environment, where employees are motivated to contribute to their
full potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking business.
 To optimize use of technology to ensure cost effective operations, strengthening of
controls, efficient management information system, enhanced delivery capability, and
high service standards.
1.6 METHODOLOGY:

This study involves two types of data for report writing:

PRIMARY SOURCES:

Interviews and discussion with staff members

Personal observations

SECONDARY SOURCES:

Annual reports of ABL

Brochures and manuals

Websites

Newspapers

1.7 DATA COLLECTION

ORGANIZATIONAL SETUP

The core parts of the organizational setup are a coordination team and a cross-departmental
coordination board. The coordination team is preferably arranged centrally within the
administration to manage the coordination of the system. The Askari bank works in the same
way. They have different teams and different cross departmental coordination boards. Since we
visited the back office of Askari bank we saw different departments on different floors. Upon
asking we came to know that all of these departments are linked together and they all work as a
team. There is a coordination board that serves as a driving force that pushes every team to work
accordingly.

ADMINISTRATION OF SURVEY

 METHOD: At least 50% of the survey is done online. The remaining 50% information is
gained during the interview.
  Also during our visit to the branch we saw the various departments and their employees.
We also asked some basic questions (like motivation, organizational behavior,
organizational culture’s role in the behavior etc.) from the employees whom we met in
the lifts and in the corridors.
 We also managed to talk to an ex-employee of Askari bank who now works for another
bank. He gave a proper insight of how he found ABL since he compared the two
organizations.

1.8 DATA INPUT

 Person mediated
 Hand coded
 Retrieval

1.9 RECOMMENDATIONS

 There should be flexibility in the company, there should be more policy on employees
productivity.
 There should be no job security for person that if he does anything wrong so he wouldn’t
get fired just because he has support of others.
 As suggested by the interviewee that presence of good looking females actually motivate
other gender employees, so as a matter of fact there should be more female staff in the
bank.
 The interviwee also suggested that light music in the working environment increases job
productivity.
 Higher level employees should be given a more sense of responsilbility as they are not
allowed to make even small decisions.