Abl Final Group # 8-b 2

Submitted To:

Mr. Ghulam Hussain. (Lecturer) Prepar ed By:

Group no. 8 Memb ers:

1

Sweelam Khurshid

055

Shafiq ur Rehman.

065

Mudassar Latif.

060

Ali Nawaz.

088

Madiha Iqbal.

110

Sadia Aslam.

112

Acknowledgment First of all, we are humbly grateful to ALLAH ALLMIGHTY WHO enabled us to complete this project and make us what we are today. After that, we are greatly indebted to our beloved parents who not only facilitated us with everything that helped and supported us get so far in our educational career and achieved so much but also encouraged and loved us so much. This enabled us to work hard and achieve our goals. Through this acknowledgement note, we would like to thank all those people who helped us in the completion of this project. Without them, it would not be possible for us to attempt it. Our friends, our university fellows who helped us gather data related to this project and also gave us related ideas & suggestions, our teacher.

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Executive Summary This project focuses on giving an insider view of the Human Resource Department structure, its working and policies within Allied Bank Limited. As HR begins to play an ever-increasing role in the survival of the modern enterprises, employee concerns emerge as the most critical but often ignored function of the technological environment within the modern organization.

Allied Bank Limited serves this critical function with utmost importance, deciding what staffing needs they have, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring personnel and management practices conform to various regulations along with managing approach to employee benefits and compensation, employee records and personnel policies.

This project delineates the HR policies currently practiced at Allied Bank limited. How employees are recruited and retained, the training given to employees, how employees’ performance is accessed and their pay structure is devised accordingly and how the bank retains valuable employees in the organization

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Table of Contents Chapter 1: Introduction ..............................................................................................5 1.1 Back ground & History........................................................................................6 Background.............................................................................................................. 6 History ....................................................................................................................7 1.1.3 Branch network ............................................................................................11 Products & services...................................................................................................14 1.2.1

Products.....................................................................................................14

1.2.2 Services ..................................................................................................... 15 Management Structure.............................................................................................15 1.4 Departments..................................................................................................... 16 Chapter 2: Human Resource Department.................................................................17 2.1 History ..........................................................................................................17 2.2 Functions of HRD...........................................................................................18 2.2.1 Human Resource Planning ......................................................................18 2.2.2 Job Structure ...........................................................................................20 2.2.3 Recruitment & selection .............................................................................21 2.2.4 Training & development .............................................................................21 2.2.5 Remuneration & reward..............................................................................21 2.2.6 Industrial rewards ......................................................................................22 .....................................................................................................23 Chapter 3: Recruitment & Selection..................................................23 3.1 Policy of Recruitment ......................................................................................24 Chapter 4: Training & development..........................................................................27 4.1 Orientation & Introduction ..............................................................................28 4.2 Training Policy..................................................................................................28 Chapter 5: Performance management & system......................................................31 5.1 Performance Appraisal Cycle ........................................................................32 5.2 Appraisal Criteria ..........................................................................................32 4

Chapter 6: Rewards & remunerations.......................................................................33 6.1 pay structure ...................................................................................................33 6.2 benefits ........................................................................................................... 34 Chapter 7: Industrial relations...................................................................................35 Labor Union ........................................................................................................... 35 7.2 Health & Safety .............................................................................................36 Bibliography..............................................................................................................37

Chapter 1: Introduction 5

1.1 Back ground & History Background Allied Bank Ltd. is one of the largest private sector banks in Pakistan in terms of assets, deposits and advances. The Bank is principally engaged in providing corporate banking facilities to Pakistan’s most valued corporations and institutions. Additionally, it also provides general banking services to commercial, agricultural, industrial and individual customers throughout Pakistan.

Established in Lahore in 1942, ABL was the first Muslim bank in Pre-partition India. It was initially known as the Australasia Bank, with a paid up share capital of PKR 0.12 million, and was renamed as Allied Bank of Pakistan Limited in 1974 and Allied Bank Limited in 2005. Today the Bank stands on a solid foundation of over 60 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The Bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 800 branches.

The Bank has the largest data communication network with all its branches offering real-time online banking. The Bank offers a full range of retail, commercial and corporate banking services with a focus on service delivery through technology.

Vision: To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers. 6

Mission: •

To provide value-added services to our customers

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To provide high-tech innovative solutions to meet customers requirements

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To create sustainable value through growth, efficiency and diversity for all stakeholders

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To provide a challenging work environment and reward dedicated team members according to their abilities and performance

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To play a proactive role in contributing towards the society

History

Established in December 1942 as the Australasia bank at Lahore with a paid-up share capital of PKR 0.12 million under the Chairmanship of Khawaja Bashir Bux, and his business associates, 7

including Abdul Rahman Malik who was amongst the original Board of Directors, the bank had attracted deposits, equivalent to PKR 0.431 million in its first eighteen months of business. Total assets then amounted to PKR 0.572 million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. The Allied Bank's story is one of dedication, commitment to professionalism, adaptation to changing environmental challenges resulting into all round growth and stability, envied and aspired by many.

1942 - 1947: Pre Independence:

In the early 1940s the Muslim community was beginning to realize the need for the active participation in the field of trade and industry. The Hindus had since the late 1880s established a commanding presence in these areas and industry, trade and commerce in the undivided Subcontinent was completely dominated by them. Banking, in particular, was an exclusive enclave of the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally unsuited for this profession.

It was particularly galling for Khawaja Bashir Bux and Abdul Rahman Malik to hear the gibe that Muslims could not be successful bankers. They decided to respond to the challenge and took lead in establishing this first Muslim bank on the soil of Punjab that was to become Pakistan in December 1942; by the name of Australasia Bank Limited.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs 0.5 million by the end of first full year of operation, and by the end of 30 June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.

1947 to 1974: Australasia Bank: 8

Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the 14th, 1947. It had been severely hit by the riots in East Punjab. The bank was identified with the Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it network spread to Multan & Quetta.

The Bank financed trade in cloth and food grains and thus played an important role in maintaining consumer supplies during riot affected early months of 1948. Despite the difficult conditions prevailing and the substantial set back in the Bank’s business in India, Australasia Bank made a profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in the separation of East Pakistan which became Bangladesh. The bank did well in despite losing lot of its assets. By the end of 1973 the bank had 186 branches in West Pakistan.

1974 to 1991: Allied Bank:

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was renamed as Allied Bank. The first year was highly successful one: profit exceeded the Rs 10 million mark; deposits rose by over 50 percent and approached Rs 1460 million. Investments rose by 72 percent and advances exceeded Rs 1080 million for the first time in bank history. 116 new branches were 9

opened during 1974 and the Bank started participation in the spot procurement agriculture program of the Government. Those seventeen years of the Bank saw a rapid growth. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46 billion, and Advances and investments from Rs 1.34 billion to Rs 22 billion during this period. It also opened three branches in the UK.

1991 to 2004; Privatization:

As a result of privatization in September 1991, Allied Bank entered in a new phase of its history, as the world’s first bank to be owned and managed by its employees. In 1993 the First Allied Bank Modaraba (FABM) was floated.

After privatization, Allied Bank registered an unprecedented growth to become one of the premier financial institutions of Pakistan. Allied Bank’s capital and reserves were Rs. 1.525 (Billion) and assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion). Allied Bank enjoyed an enviable position in the financial sector of Pakistan and was recognized as one of the best amongst the major banks of the country.

In August 2004 as a result of capital reconstruction, the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

2005: In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced w.e.f. the following dates. 10

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Islamabad Stock Exchange- 8 August 2005

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Lahore Stock Exchange- 10 August 2005

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Karachi Stock Exchange- 17 2005 August

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Faisalabad Stock Exchange- 26 August 2008

2007: Muhammad Aftab Manzoor has taken charge as CEO and President of the Bank on August 13, 2007. He is an ex-president of MCB bank Ltd. In 2008, Allied Bank has won The Corporate Finance House of the Year (Banks) award for the second consecutive year. Today the Bank stands on a solid foundation of over 63 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches.

1.1.3 Branch network Allied Bank is now one of the largest banks in Pakistan, operating through a network of 766 branches in over 300 cities and towns offering real-time online banking. The bank has in place 11

the largest ATM network in the country with 502 ATMs in more than 145 cities and towns across Pakistan.

Some major cities where Allied Bank Limited has it branches are depicted in the subsequent map

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Products & services 1.2.1

Products

1. Deposit products a. Current account b. Allied business account c. PLS saving account d. Allied basic banking account e. Foreign currency deposits f. PLS term deposit g. Allied Munafa account h. Manahana Amadni package i. Allied Bachat scheme j. Behtar Munafa account k. Behtar Munafa term deposit l. Allied e-savers account

2. Alternative delivery channels a. Allied Cash + Shop Visa debit card b. Online banking c. Internet banking d. Helpline

3. Consumer products a. Visa Credit card

4. Lending products a. Seasonal finance b. Agricultural finance c. Import export business / Trade finance 14

d. Running finance e. Demand Finance

5. Corporate leasing

1.2.2 Services 1. Home Remittances 2. Remittances 3. Hajj services 4. Utility bills 5. Lockers 6. Commodity operations 7. ATM network

Management Structure The management of the bank comprises of seasoned bankers led by CEO and is divided into different groups on functional basis. At the management level, there exist six major committees including

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Management Committee,

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Human Resource Committee,

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Risk Management Committee,

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Assets and Liabilities Committee,

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Compliance Committee

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•

IT Steering Committee.

1.4 Departments No bank can be expected to operate efficiently unless all employees with in a department, division or section know: a) From whom they are to receive the work they are to do. b) What they are supposed to do with the work after they receive it. c) How they are supposed to handle the operation of item. d) When they are supposed to do work, perform the operation. e) To whom they give the item or function after finishing it.

To perform the functions efficiently the bank has its Head Office in Karachi, which is controlled by the president of the Bank. The bank has regional office under head office in major areas of the country. Regional Chief heads this office. The region Consist of many zonal offices with a zonal chief. There are many branches in a zone to carry the functions effectively and performing customer services locally.

ABL Ltd. is functionally organized into divisions and divisions are further divided into department and sections. Every province has its own regional office and zonal offices. Executive vice president heads the divisions and departments are further headed by OGI (Officer of Grade I). Manager heads branches.

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Chapter 2: Human Resource Department HR (Human Resource) management is an often-underestimated task in work-environments. However, it is adequate and conscientious HR management that will establish and retain a qualified, well-cooperating workforce and therefore, ultimately, an increase of organizational growth, efficiency, and profitability. Allied Bank is amongst the leading commercial banks in the country and has always played a pioneering role in introducing innovative, technology-based banking services. The role played by its human resources is highly valued, both in terms of their skills and dedication in implementing unique banking services.

2.1 History Allied Bank of Pakistan always aims to achieve edge in human resource by: •

Inspiring and motivating its people.

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Developing its people to strive for higher standards.

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Driving an open minded and enterprising corporate culture where people through leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed.

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Attracting and recruiting the best talent

Allied Bank has a very defined and well structured department and its various policies of keeping each employee productive part of the organization are intoned with the corporate world’s requirement.

Employees in the company are largely committed to their organization and have shown progress in the company. Employees are satisfied with the HR department of Allied Bank. Humans are the basic tool for having competitive edge in the market for most of the organizations and Allied 17

Bank is one of these. Allied has one of the best HR systems in Pakistan that gives it an edge over its competitors. The development of human resource continued to receive utmost attention of the Management.

Towards this end the Bank inducted qualified personnel, such as MBAs &

M.Coms who were also required to undergo vigorous extended training of the existing personnel training programs continued with main thrust on computer appreciation to encourage computer usage in the Bank.

2.2 Functions of HRD All the functions of HRM are proper working in the organization to enhance the productivity of workforce.

2.2.1 Human Resource Planning Human resources (HR) planning is a process that identifies current and future human resources needs for an organization to achieve its goals. At ABL HR planning serves as a link between human resources management and the overall strategic plan of an organization. Human Resource Department is fully functioned in the organization. It indicates the current and future need of human resource. It also planned according to the need of the organization. For Allied Bank Limited, Human Resource Planning (HPR) is the pattern of planned human resource deployments and activities intended to enable the organization to achieve its goals. Hertz believes in having the Right number of people with right skills at right place at right time to implement organizational strategies in order to achieve organizational objectives

In light of the organization’s objectives, corporate and business level strategies, HRP is the process of analyzing an organization’s human resource needs and developing plans, policies, and systems to satisfy those needs.

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HR Strategies: Human resource department is putting its efforts towards nurturing a winning corporate culture and building organizational capabilities by ensuring that its people at all levels are both able and willing to perform at consistently exceptional levels. At Allied Bank the people have been empowered to a large degree by minimizing out dated rules /regulations and plan to further eliminate the bureaucratic barriers to capitalize on their ingenuity and talent.

HR strategy refers to the specific human resource management course of actions that a company pursues to achieve its objectives. But how these strategies/policies/practices are formulated and implemented at Allied Bank. There is a whole process behind this.

The top team continues to play its role in providing the guidance and support to people at all levels. The HR (people’s) function ensures that it leads the transformational change by nurturing a climate, which would help in converting the huge potential at disposal of the company into world-class performance.

The active and effective role played by HR in people development at different levels organizational, departmental and individual is considered in Allied Bank to be one of the most critical factors leading to the development of a winning corporate culture. The effort continues to be directed towards developing the skills of the shop floor employees, improving competencies of Business Support Officers (BSOs), and enhancing the leadership qualities of managers.

Like most big organizations, the development of HR Strategies is also done in accordance with company’s mission. First, Strategic planners analyze what actually is the prevalent culture of the organization, what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of business and its market, and on the basis of all the above analysis, company’s strategic plan is established. In the end HR strategies are formulated in accordance with this overall business’/companies’ strategic plans.

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2.2.2 Job Structure 2.2.2.1 Job Analysis It includes the following two types. a) Job Description b) Job Specification

2.2.2.1.1 Job description It describes the job status means role statement of the employee. All new employees of the Bank should initiate preparation of their Job Description and should get it finalized with the help of their immediate supervisors within 30 days of joining at their place of posting. The Job Description duly signed and agreed by both the employee, his/her immediate supervisor and manager should be sent to HRD for record. Concerned Branch Managers/ Area Managers (and in case of Head Office Staff, concerned Departmental Heads will be responsible for compliance of this requirement The purpose of the Job Description is to clearly define the job responsibilities of each employee and to ensure that the employees are made aware of and understand what is expected from them. The standardized Job Description Form is made available to all employees at the time of joining.

Components of Job Description Form: ABL’s Job Description Form has a standardized format, which comprises of employee’s brief service particulars like name, Job Title, Department/ Branch’s Name, salary range, basic and gross. It also contains the name of the reporting officer, with his job title and salary range ABL’s JD Form include what employee actually does, how he or she does it, and what the job’s working conditions are. It contains sections that cover the following information about the job: •

Purpose of Job (Summary) 20

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Primary duties and responsibilities

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Secondary/ Additional Responsibilities

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Performance Standard

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How many staff reporting to employee

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Working relationships/ Contacts within and outside the Bank

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Job Specification which shows the desired human traits and experience for the job (to be completed by Reporting Officer)

Job Description form has to be signed by the Job Holder, immediate Reporting Officer and Branch Manager/ Departmental Head at HO.

2.2.2.1.2 Job specifications It describes the minimum qualification of the job

2.2.3 Recruitment & selection Recruitment & selection is made according to the nature of the job in the organization. HRM department hires the competent applicants in order to achieve the desire result.

2.2.4 Training & development HRM department is working as learning organization in which innovation is made through training & development. For this purpose organization held the annual training meeting (according to need & change in the environment)

2.2.5 Remuneration & reward Allied Bank has adopted the policy of motivating its employees through increase in salaries, enhancement in the coverage and amount of group insurance, reimbursement of educational expenses, improvement in medical facilities and recognition of their contribution etc. 21

2.2.6 Industrial rewards Organization has good relation with other banks (Banking Industry) because every bank makes transactions with other banks on the behalf of customers. Every bank wants to establish good relation with banking industry (Pakistan Bank’s Association)

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Chapter 3: Recruitment & Selection After the Privatization of ABL central office at Karachi is dealing with the appointments to different officers posts. And the central office also fills other executive posts. For certain posts the executives also have right to appoint the qualified persons.

But the main criteria of

appointment are by test and interviews.

Recruitment is an act of seeking prospective new employees or members for an organization. Recruitment is a vital function for an organization to maintain its personnel. In Allied Bank, the activity to fill a vacancy or a new job starts with the requirement communicated by the respective managers to the HR department. The HR department then looks for the possibilities of internal and external recruitment.

Flow Chart of R & S: If there is any vacancy in any department then HOD makes a form in which all the detail of vacancy is written according to the need in the department. HOD writes the Job Grade and Pay scale in the form which is called Personal Requisition Form. The flow chart starts with vacancy and ends with contract letter. •

Vacancy

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Personal Requisition Form

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Advertise the Vacancy

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Written Test

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Short Listing

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Interview

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Reference & Background Verification

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Offering the Job 23

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Employee Agreement

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Contract Letter

Effective recruitment is important in achieving high organizational performance and minimizing labor turnover. ABL by and large has following aspects in mind when practicing recruitment practices: •

Manage and measure recruitment & selection as an ongoing core process to foster continuous improvement.

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Identify and target multiple, rich sources of candidates and actively market to them.

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Develop strong Internet recruiting capabilities to drive recruitment process efficiency and effectiveness.

3.1 Policy of Recruitment Internal Recruitment: It includes the following a) Transfer (horizontal movement in the same jobs) b) Promotion (lower grade to upper grade)

ABL prefers the internal sources of recruitment because old employees are familiar with the ABL policies it also saves the hiring & advertisement cots. In Allied Bank, internal recruitment is done for the managers of the higher grade and directors. When a position is vacant, the HR department views the past performance of the people working at lower levels than the vacant position and chooses the right person who is promoted to that position.

At the manager and director level, the internal recruitment process is mostly carried out but when managerial position is vacant and a suitable person is not available for the desired post from with in the organization then external recruitment is carried out. 24

External Recruitment: For external recruitment in Allied Bank, the line managers are required to make a requisition form for the job in which they have to mention their need taking in account the budget for establishment and salaries for the position of Management, Business Support Officers and Workers. Role profile for the specified job is also prepared matching up the requirement and the grade of the job. Training period is also specified on the requisition form.

The requisition form along with the role profile is sent by the line manager to the functional director for his approval and then forwarded to HR Manager. The HR manager confirms the availability of budgets required for establishment, salaries and cost of advertisement for the job. After all this, the requisition form along with the job profile and the budget forecast is sent to the HR Director for his final approval.

After approval from the HR director the HR manager and the line manager work hand in hand to prepare job and person specifications for advertising or giving to the Head Hunters. The sources that Allied Bank uses to attract applicants are: •

Inviting applications through advertisement

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Recommendations from the head hunters

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Applications obtained from the data bank of Allied Bank where direct applications are received from time to time.

After a substantial amount of applications have been received, the line and the HR managers again work together to shortlist the applications. This is done by carefully going through all the application and by giving different weight age to the following criteria: •

Quality of early schooling 25

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Grade obtained

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Extra Curricular activities

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Overseas travel and education

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Age

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Target University

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Relevant experience

The HR Department then issue call letters to the short listed candidates along with blank application forms by Date, time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. A two-member panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills. After the preliminary interview is cleared people applying for different jobs are tested in different ways. The following management competencies are assessed by a panel of cross functional assessors In the case of management selection: •

Communication skills

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Resource management

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Rational decision making

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Influencing

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Creative thinking

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Business development

The HR department is responsible for overall administration of the assessment centre including training of the assessors. The HR department provides details of remuneration package and terms and conditions of service. The HR department also prepares appointment letter, service agreement and finalizes other documentation for service record. For this purpose ABL also selects the some professional institutes for R & S

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Chapter 4: Training & development Allied Bank Limited has five training academies, two in Lahore, two in Karachi, and one in Islamabad. In these training academies the new as well as the existing staff get training. When a new employee comes in ABL then most often he is sent to any of these academies for training. The training period may be minimum of one-month up to maximum of one year. The training period depends upon the nature of the job. During the training the new employees are acquainted with all the necessary information about their jobs.

Some general benefits ABL extract from employee training are:  increased job satisfaction and morale  increased motivation  increased efficiencies in processes, resulting in financial gain  increased capacity to adopt new technologies and methods  increased innovation in strategies and products  reduced employee turnover

When any change occurs in the policies of the Bank, then the seminars are held in these an academy in which employee as well as executives participates to get information about the new policies of the Allied Bank. For example if the Bank policy regarding the financing schemes change then the Managers of the Advances Section are invited in these seminars. They learn about the new changes and then implement these changes in their branches.

In these academies a permanent staff is present for the training of employees. However, if requires, subject specialists are invited to deliver lectures on certain subjects. For example the Bank has a contract with Sajjad Associates which send its executives to deliver lectures on 27

project financing. In order to enhance the capabilities of the employees, ABL has chalked out a comprehensive training and skill development program.

4.1 Orientation & Introduction Allied Bank has a very well organized and well established HR department that practices all the HR strategies which are beneficial for the organization. As other departments are well established and operational for there matters, HR department is empowered to develop and plan what so ever is required for the company.

Orientation and induction is required for employee familiarization with the organization and Allied Bank is well aware of this fact. Affiliation with organization is only possible if the employees are informed about each and everything. When the employee is hired he get proper orientation and that orientation may exceed too few months until he get the feeling of affiliation and get to know the organization well.

4.2 Training Policy Training is a planned effort by a company to facilitate employees learning of job-related competencies. These competencies include knowledge, skills or behaviors that are critical for the successful job performance.

At Allied Bank, there is a continuous assessment of the technical and managerial skills. For the further enhancement of these skills formal training programmes offered at all levels. The employees are provided with opportunities to put these skills into practice, in preparation for the move to a managerial role.

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Training is viewed at Allied Bank as a way of creating intellectual capital. Employees are expected to acquire new skills and knowledge, apply them on job and share this information with other employees. The training is cross-functional for sharing of skills.

The employee are trained periodically either locally or abroad according to preplanned schedules. The objective of such training is to upgrade the capabilities of employees.

If an employee attends an overseas training then he/she has to serve the company for a certain period after the date of completion of training subject to the cost and duration of training itself. In case an employee leaves the company during this period he/she will have to pay the amount specified at that point in time.

Training Methods: •

On Job Training

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Special Training Sessions

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Team Building

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Problem Based

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Refresher Courses

Types of Training in Allied Bank: On a general basis the training done in Allied Bank can be divided into two categories:

Soft Skill Training: Helping the employees develop a stronger base of knowledge on topics that affect their personal lives can make them more productive and less distracted in their jobs. Soft skill development 29

courses in areas like personal finance can help your team better manage the most important areas in their personal lives. This includes the following things for e.g. •

Conflict management training

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People management training

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Communication skills

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Time management training

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Teamwork training etc

Technical Training: It includes the computer base training in which employees are trained according to the new technology in which banks is dealing.( peach tree accounting management, oracle, database etc) This type of training has direct effect on the job of the employee. Specific skills are focused and developed accordingly. The engineering trainings of Allied Bank are also included with this along with •

Customer Services training

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Sales related training

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Marketing and technology training etc.

All these types of training are done to enhance the employee’s job skills at the level he is at. Training programs leads to: •

Leadership

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Influencing

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Creative Problem Solving 30

Chapter 5: Performance management & system Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in ensuring the success of the company through effective employee performance.

Success of ABL is directly related to the commitment and productivity of the people who work in business. Performance management is a considered vital for the bank. Its objective is to improve overall productivity and effectiveness by maximizing individual performance and potential. Performance management is concerned with –  improving individual and collective performance;  communicating management's expectations to staff;  improving communication between senior management and staff;  assisting staff to enhance their career prospects through recognizing and rewarding effective performance;  identifying and resolving cases of underperformance; and  Providing training for improving performance of employees

A review is about ensuring people know what levels of performance are expected of them and then taking action to ensure they are trained and developed to perform effectively. The intent of these appraisals is to review current job performance and responsibilities, set goals and discuss further opportunities with reference to past performance at ABL

Objectives of Performance Appraisals

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•

To measure the work performance

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To motivate and assist employees in improving their performance

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And achieving there professional goals

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To identify employees with high potentials for advancements

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To identify employees training and development needs

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To provide a solid path for career planning for each individual

It bases on goal achievement of individual & group. In ABL it depends on deposit, advances & any given target by the bank. It varies according to situations in which employee is dealing with his customers.

5.1 Performance Appraisal Cycle It starts with calendar year & ends with calendar. Training & development is the basic purpose of the cycle. As we know training & development are conducted according to the need of the Human Resource.

5.2 Appraisal Criteria Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in ensuring the success of the company through effective employee performance. A review is about ensuring people know what levels of performance are expected of them and then taking action to ensure they are trained and developed to perform effectively. 32

Chapter 6: Rewards & remunerations The policy of motivating bank employees through increase in salaries, enhancement in the coverage and amount of group insurance, reimbursement of educational expenses, improvement in medical facilities and recognition of their contribution etc.

Allied Bank has a separate department for compensation. That department deals in staffing and compensation planning. First of all this department has all the information regarding who is being employed and how it is performing. What so ever promises are made to the employees, they know that. So it’s easy for them to design compensation plans because they know every employee which is being hired.

Compensation and benefit plans are particularly based on performance. If performance is up to the standards of Allied Bank and the employee has good conducts he is rewarded. After performance evaluation, results are rechecked and matched with the standards. Based on that, proper compensation plans are designed.

6.1 pay structure The company will pay salaries of the employees as fallows o All new employees have to open bank accounts in specified banks prescribed by the company so that their salary will be credited at the end of each month. o After opening account with the bank employees forward his account number to HR. o Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day.

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o Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job.

6.2 benefits Promotions: Promotions are reward management technique used at ABL to motivate employees. In Allied Bank promotions are based on the merit and seniority (experience) basis. The one who performs well consistently over time gets reward in the form of promotion.

Bonuses: The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives. In Allied Bank the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager of respective departments recommends a candidate from his section for the reward purpose to HR.

Intrinsic and Extrinsic rewards given to employees at ABL include: 

Smart/Quality work

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Exceptional performance in a project

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Targets achievements

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Special assignments

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Medical care

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Life insurance

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Vacations

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Recreation

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Club Policy Travel

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Education assistance policy

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Mobile phone 34

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Business mobile phone policy

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Life insurance

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Medical entitlement

Chapter 7: Industrial relations Every organization wants to create good relations with its industry in which it is dealing similar case with Allied Bank. It has good relations with their banking industry because every bank deals other effectively and efficiently with banks on the behalf of customers.

Labor Union

It is the ABL policy to ensure that the required standards of performance and conduct are maintained. The disciplinary procedure is intended only as a statement of Company policy and management guidelines. It does not form part of the contract of employment or otherwise have contractual effect. In labor elections Executive & Officers are not involved only clerical & non clerical staff are involved. Allied Bank Worker Union is the labor union at ABL.

It is taken as guaranteed at ABL that Employee Relationship Management will improve productivity by improving:  Employee morale  Employee loyalty  Employee turnaround  Employee communication  Employee change readiness

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7.2 Health & Safety The safety of employees is the organization’s responsibility. Accidents, precaution and efficient work go hand in hand. At ABL the interest in practicing safety prevention is encouraged by: a) Setting good examples. b) Acting upon safety records. c) Reviewing safety programs. d) Holding personal interviews or group conferences. e) Starting activities that will stimulate and maintain employee’s interests.

No phase of operation of administration is of greater importance than accident prevention. It is the policy of the bank to provide and maintain safe and healthy working conditions and to follow operating practices that safeguard all employees and result in safe working conditions and efficient operations. Proper First Aid Kit will be available at all ABL Offices including remote locations.

There is no need for such measures at ABL as maximum jobs do not expose you to the health hazards and are not such that require safety measures. However, there is a tendency of being safe in every human.

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Bibliography o

www.abl.com

o

http://www.sbp.org.pk

o

http://www.ablamc.com

o

Annual Book of ABL

o

News letter of ABL

Resource Person Muhammad Jamil Officer/PA to RH Regional Office 51-c, old civil lines Sahiwal.

Muhammad Aslam Khan Manager Chak No 89/6-r Sahiwal.

Muhammad Hafeez Ch Manager Farid Town Phase 11

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Sahiwal.

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