Study Of Bank Alfalah Limited History And Operations Business Essay



Bank Alfalah Limited:

Bank Alfalah Limited started it functioning on June 21st, 1992 in the form of public limited company under the Companies Ordinance 1984. Its banking operations started from November 1st, 1997. Since then the bank is engaged in commercial banking and other services relating to banking as defined in the Banking companies' ordinance, 1962 of Pakistan. The Bank is currently operating through various branches in Peshawar and in Pakistan at large. They have also branches in Bahrain, Bangladesh & Afghanistan, with the registered office at B.A. Building, I.I.Chundrigar, Karachi.

Since the start, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has adopted strategies and policies to create a different position for the bank in the market place. It became economically stronger with the banking of the Abu Dhabi Group and its driven by the strategic goals set out by its board of management. The Bank has invested in revolutionary technology to have a vast range of products and services.

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This helps the commitment of Bank Alfalah to a culture of more innovation and seeks out synergies with clients and service providers to ensure undisturbed services to their customers. Bank Alfalah focuses on the requirements of their customers and always try to match them with quality products and service solutions. During the past five years, Bank Alfalah has raisen in the market as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

The Name of the Chief Executive of Bank Alfalah is Mr. Sirajuddin Aziz and the Co-Chairman Central Management Committee is Mr. Parvez A. Shahid


Bank Alfalah vision:

To be the premier organization operating locally & internationality that provides the complete range of financial services to all segments under one roof.

Mission Statement of Bank Alfalah:

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.


Faisal Bank Limited

Faysal Bank Limited started its operations in Pakistan on October 3, 1994, in the shape of public limited company under the Companies Ordinance, 1984. The Bank has listed its shares on Karachi, Lahore and Islamabad Stock Exchanges. Since then the Bank is engaged in Commercial, Consumer and Corporate Banking activities. The Bank has a network of 136 branches including 10 Islamic Banking branches and 2 sub-branches. The registered head office of the Bank is situated at Faysal House, ST-02, Shahrah-e-Faisal, Karachi

The Pakistan Credit Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have fixed the Bank's long - term rating as 'AA' and short term rating as 'A1+'.

Faysal Bank's asset in 30th June, 2010 was over Rs. 175 billion; about 3,000 employees are working in the banks with a network of over 135 branches in 38 cities of Pakistan. Currently it is the 12th largest bank in Pakistan by assets. The majority share holding of Faysal Bank is held by Ithmaar Bank B.S.C.


Faysal Bank Limited Vision:

Excellence in all that we do

Faysal Bank Mission Statement:

Achieve leadership in providing financial services in chosen markets through innovation.

Faysal Bank VALUES:

Faysal Bank daily code of conduct is exemplified by eight core values: Four threshold values - values at the heart of our brand and four differentiator values - values that set our brand apart.

The president and CEO of Faysal bank is Naved A. Khan while the chairman of Faysal bank is Syed Naseem Ahmad


Objective of the study:

We went to Bank Alfalah and Faysal Bank branches located in Peshawar. We interviewed the HR officers of both banks and some other employees for our HRM assignment and we asked them questions regarding the way they plan Human Resource and their Processes and the way they Recruit new employees for the Bank. Now we are going to apply the information relating to Human Resource planning and Selection and Recruitment Method gain from these two Banks in our HRM assignment.

Analyze the need for human resource planning, the information required and the stages involved in this process (P4)

Human Resource Planning:

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"Human resource planning refers to as "the process of deciding what positions the organization will have to fill and how they are going to fill them" (Reference Gary Dessler,

Human resource planning is a process conducted by a firm for the future in order to decide how much employees are required by the firm to recruit to cover the post, from warehouse keeper to the CEO. Human resource planning is the most important part of the overall Human Resource strategy. For example a firm wants to enter into a new type of business or market it will have to plan that how much of employees it needs for carrying out those new operations if it wants to achieve success.

Process of Human resource Planning:

Planning relating to employment is being done on the basis of some basic assumptions. Forecasting techniques like HRP enables a company to generate these assumptions. If a company wants to plan for their employment needs, they basically need to consider three things:

Personnel needs (demand)

Supply from inside (Current employees)

Supply from out side.

After doing the analysis of demand and supply then the stage of removing the gape between supply and demand comes

Forecasting of personnel needs (Demand):

Organizations keep the some factors in mind while forecasting demand. Factors like the objectives of the organization, employees utilization (how much of labor will an organization require for their production or services objectives), the cost of labor, and environmental factor like technology and social norms are important for demand forecasting. There are simple techniques like ratio analysis and time series analysis through which forecasting of demand can be done.

Forecasting of Supply:

One important question in this regard is should an organization plan to fill the forecasted positions with employees already working in the organization or by hiring people from outside the organization. There are also some important factors, which a firm must consider while conducting the process of forecasting supply. If a firm is planning to fill the position from within so it must consider factors like employee's skills, performance standard, potential trainability, educational base etc.

On the other hand, if a firm is planning to recruit people from outside so it should consider factor like skill availability, education and training level of the potential people, competitors activities and paying rate in the markets. Computerized information systems that contain a database of all the employees can be used for forecasting supply from outside.

Removing Gap between demand supplies:

After doing the demand and supply analysis three situations can arise. Firstly, demand may become equal to supply so no actions are needed in this situation. Secondly, there may be surplus of workers so in such a situation steps like early retirements, limited hiring and reducing the numbers of employees are appropriate. Thirdly, a shortage of employees may arise so in such a situation the process of recruitment and selection should be fastened.

(Reference: Gary Dessler,)

Apply the concepts of human resource planning and stages involved in this process on the organization under study (M3)?

The concept of Human Resource Planning along with the stages involved in its process has been discussed in detail in P4 of this assignment here we will discuss the Human Resource Process in Faysal bank and its advantages for the organization.

According to HR officer of Faysal Bank, Human Resource Planning is very important for their Human Resource department. By conducting the analysis they come to know how many employees they have currently and how much they require in the future in order to gain their Human Resource objectives. They analyze Human Resource with the help of time series which mean they give targets to their employees and if they are unable to get those targets in given time with the available staff (Demand) they then analyze the performance of each employee by using their human resource information system (HRIS) that contains the data of the all the employees they foresee the potential trainability, productivity improvement of their current employees. Beside this they hire more employees in order to expand and to get their Human Resource targets.

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For example if they want to recruit new employees firstly, they look at their current employees, someone with experience, skill, competitive edge over other if there are such employees then they assign them double duties with 50% increase in pay. If there are not such employees available then they find new employees through the reference of their existing employees or friend and family members (Supply of employees from Inside). If they are opening new branch for that purpose they also first look in their current employees to bring employees for them.

Faysal Bank Human Resource department do not advertise for the required general posts, they only advertise (Supply from outside) for the post of MTO (Managing Training Officer). Student from high class Universities apply online for this post once a year and normally they accept the qualified student of LUMS, IBA, NUST Universities respectively, for this post.

Objectives of Faysal Bank behind conducting Human resource planning:

Objectives of Faysal Bank behind conducting human resource planning are as follow:

To fill the desire to look into the future:

Organizations like Faysal Bank are growing big and the method of doing business are becoming difficult day by day as a result jobs at Faysal Bank sometimes requires sophisticated experience and skills that cannot easily be found and bought. Secondly it takes time to train and develop employees. Due to these factors Faysal Bank may find it self in a problem if they don't plan their employees properly so for Faysal Bank the desire to look into the future is growing due to factors mention above that's why it is the main objective behind conducting Human Resource Planning..

To exercise control over as many variables as possible which influence business?

Businesses are cant forecast their future. Most of the analyst refers Human Resource Planning as an approach to risk management. Faysal Bank also uses Human Resource Planning so that it can practice control over changeable or variable factors like labor turnover, future labor market etc.

To cope with employment protection legislation:

It is one of the Faysal Bank main objectives behind conducting Human Resource Planning. Legislation (laws) relating to job security and general expectations from Faysal Bank as far as social responsibility is concern makes it difficult for it to simply remove employees. The cost of this for Faysal Bank can be measure in financial terms (cost of employee development etc) as well as loosing its reputation as a secure employer that at times may also harm its business. So Human Resource Planning can help Faysal Bank in dealing with problems like these.

To comply with technological changes:

Advancement in technology is changing the nature of work as new technologies are emerging in Service Sector. Faysal Bank conducts Human Resource Planning so that technologically competent employees can be hired. For example if it pre-plan to hire fresh IT experts who are able to know that how to use competitors for online payment and receipts along with some accounting skills so it means that Faysal Bank would be having a competitive edge over its competitors.

To cope with de-jobbed workers:

In Pakistan the pace of jobs is changing the trend of project base work is increasing day by day. So it is one of its core objectives behind conducting Human Resource Planning that proper planning can be done about project base workers.

To complete the expansion plans in time:

The demands for Banks are increasing day by day. Therefore Faysal Bank has some serious plans to expand its operations. This means that it would need new people for which it conducts human resource planning so that a forecasted demand of human resource can be generated. This will help the organization in hiring the right person for the right job and with in time. Ultimately Faysal Bank will be able to complete its expansion plans in time.

Recommend, how the organization can improve their human resource planning to achieve Human Resource goals effectively (D3).

The changes and pressures brought in by economic, technological and social factors have forced organizations of all kinds to study the costs and human aspects of labor much more seriously and carefully than ever before. Therefore Faysal bank needs to further improve their Human Resource Planning in order to achieve their HR goals effectively.

For improving their Human Resource Planning Faysal Bank need to implement the suggested steps below:

They need to accept employees from the most honest and well known reference (Supply of labor from inside). Not from any body because some can be bias in bringing their relative, friends with no educational background and skills in order to improve their Human Resource Planning.

They must select the worker (employees) with the required ability and information because it will give spirited edge over competitors since a good quality worker will carry advance service deliverance and hence productive personnel can analyze Human resource well.

They need to educate their present staff and try to make use of their present staff more by raising their salaries, in this way the present staff can be made knowledgeable and it will also help the Analyzers of HR to measure the performance of their current staff and the required number of staff and skilled they require to hire in order to support the old and hence achieve their HR goals.

They need to keep their strategic planning (corporate objectives) in mind while conducting Human resource planning process; this means that the HRP must satisfy the whole objective of the organization.

They should actively involve their managers, executives, and line employees during analyzing human resource because they have more inside to the organization.

Compare the structured process for recruitment in two organizations and evaluate the methods and media that can be used (P5)

Systematic approach to Recruitment

"Recruitment is the part of the human process concerned with finding the applicants: it is a positive action by management, going into the labor market, communicating opportunities and information, and encouraging applications from suitable candidates".

Effective recruitment is increasingly important today. Recruitment is a very complex concept it is not a simple process of placing ads or calling employment agencies. The crucial effort in this regard is that recruiting should make sense in terms of your overall corporate strategic plan. Successful results of recruitment depends upon other HR polices so it is very important that recruitment policy should be coherent with your HR policy and also with the overall strategic plans.

Recruitment sources (internal and external)

Internal sources: Existing employees, rehiring the old employees and succession plan {The ongoing process of systematically identifying assessing and developing organizational leadership to enhance performance (Gary Dessler, p.no163)} are the internal sources for recruiting employees.

External sources: Advertisement, employment agencies, off shoring/outsourcing, college recruiting and employee referrals is the external sources of candidates.

Systematic approach to recruitment

A systematic approach to recruitment will involve the following steps:

A detailed document of human resource planning, which contains anticipated detail of required human resource such as how, much of human resource organization needs to meet it objectives.

Job analysis which includes:

Job description: a process conducted so that detail information of competent Tasks, duties and standard can be generated.

Job specification: a detail statement of the professional qualification and skills required for a job.

Job analysis is being conducted so that there is detail information with the organization that helps in hiring the right person for the right Job.

An identification of the free posts, by analyzing the human resource plan and job analysis for different branch or department, which has free vacancy, and subsequent, approval or authorization. Seeking approval from that specific department ensures effective, low cost and timely recruitment.

Evaluation of the sources of the staff that should be predicted by using forecasting techniques. Internal and external sources should be analyzed in this regard.

Preparation and publication of information (giving the jobs description and specification in the media along with other condition).

One the applications from the potential candidates are received they can further processed before selecting the candidates.

Recruitment approach by Bank Alfalah

The overall aim of recruitment process in an organization is to obtain the quantity and quality of candidates required to fulfill the objectives of the organization.

The recruitment policy of bank Alfalah is centralized and lower employees have no access to it but it exists in a proper form. The policy manual of Alfalah is also not properly communicated to the lower employees and no one in the lower employees knows that what the overall policies of bank are. When we asked about the policies from the lower employees some of the employees were not clear about the HR policies as they had neither been not communicated, nor seen the policy manual. We asked the HR coordinator about the policy manual, she refused to give it to us saying that it's highly confidential. Yet verbally she gave us some idea that what are the steps in recruitment. These steps are as follows.


The recruitment policy of bank Alfalah has the following conditions:

If some one is applying from Khyber Pakhtun Khwa he must be domiciled in Khyber Pakhtun Khwa.

The required ages for the fresh recruits at start level are between 18-26

The educational qualifications of the employees.

Officers (Executive Category) Master Degree /MBA/MCOM

(Any recognized University by Federal Govt.)

Assistant Officers/below Category B.A./B.Sc

(Any recognized Institute by Federal Govt.)

Peon and supporting staff / matriculation.

Sources of Recruitment (labour pool):

Whenever a vacant position is available, the head of department make reviews of the existing personnel and carry out a search within the organization for suitable persons before trying the outside sources. But if a person with the required qualifications for a given job is not available, fresh recruitment is made.

Ways of Recruitment:

The vacant posts are advertised through the local and national newspapers and applications are invited with the job specification and description showing the job requirements and eligibility. If the staff member knows any eligible person he or she is asked to call him along with his CV. If he meets the job criteria than the bank does not advertise for five or six seats but if the seats are more and time is less than they do advertise.

Manager's view:

The HR coordinator of bank Alfalah told us about the recruitment policy of bank Alfalah according to her they follow the following approach to recruitment:

Detailed human resource planning defining what resources the organization needs to meet its objectives.

The HR Manager described the duties, responsibilities, objectives, tasks and standards of the job.

The HR Manager specified that what type of employees they are looking to perform the job.

We provide equal opportunities to all the employees meeting with our criteria. No gender or racial discrimination is involved.

We train our employee's after recruitment according to their job and assign them a job or duty.

At start we hire our employees on contract basis of one year but if he/she performs well then he/she can be made permanent.

Employees' view:

As we have interviewed some of the employees according to their point of view recruitment policies are very much transparent and fair. As those employees have spent more than three years in bank Alfalah and were satisfied from their manager and from the bank environment. According to them they have submitted their CV's in bank AlFalah and after some time they were called for a written test and than after qualifying the test they were called for interview. Then they were selected and sent for four months training to Lahore where they have their own training academy for fresh employees to train them for such specific job for which they were recruited.

Personal analysis:

Bank AlFalah is considering well in banking sectors because of their transparent policy which includes recruitment, selection etc. We personally fell well about their policy because the employees which are part of the organization are personally satisfied from their recruitment process. They clearly show the qualities of the personnel, which they required. Because of their good behaviors to the applicants they create a good corporate image on the mind of the applicant. The peoples who are still part of the organization are in favor of their recruitment policy, which helps in creating a good image of the organization of the peoples out side the organization.

Recruitment approach by Faysal Bank

Whenever there is a resulting demand of recruitment F.B (Faysal bank) there are a few patterns which F.B follows in order to achieve a person for that job, for that reason Faysal bank hires different recruiting agencies ……………… to conduct the operation of recruiting of the desired vacancy. Similarly when different internees to drop in their C.V (curriculum vitae) so that when ever required they can fetch them for the desired vacancy.

Before the recruitment of an employee different aspects are planed to accomplish the finest out of the new recruit so that it can give the best it can to the bank.

The objectives which are kept in front before the recruitment are as under:

The individual's potential of achieving the objectives which he/she is hired for.

The recruit may not get exceeded before the finalization of the desired task.

The recruited should have the ability of holding new things when he/she is being skilled.

He/she could adopt himself/herself to the changes or innovation in the bank industry.

And above all he/she could be reliable so that he/she could keep the business secret of this financial organization.

The individuals who are preferred before the recruitment of the new candidates for the bank are as under.

Initially the preference is given to the existence employees if there is any employee who deserves that particular job, or that if a particular person is capable of filling that vacancy, he/she is preferred as to before hiring a new employee.

If there is some individual in the Faysal Bank branch who has got the nerve that if he could be trained he can get more skilled and suits that job unoccupied at that time he could be indulged in that particular vacancy.

The desired vacancy could be referred to the other braches of the bank, so that if there is any capable employee who can be assigned to that job then he/she will be undertaken.

Faysal Bank Relationship Manager View:

Mr. Muhammad Yaver Khan Khattak the branch relationship manager Faysal bank Omer Plaza Jehangirabad University Road view over the recruitment policy is that this is a very flexible and feasible approach for the employees already working in the bank that if they are given the motivation that if there gets a vacancy in the bank they have got a chance for the promotion for the employee, this end results in the betterment of the organization and the employees start for put in more efforts for the achievement of that desire post.

likewise he thinks that if there isn't any one commendable enough for that job, we hire different agencies for the recruitment of the staff of the bank which helps in the time saving of the organization but for the desired quality of the new recruitment the final interview is being conducted by the HR coordinator in the Islamabad brunch. And then the C.V (curriculum vitae) of the candidate is send to the head office in Karachi.

Employee's view:

When we interview Mr.Imran a newly recruit in F.B Omer Plaza Jehangirabad Peshawar, he said that the recruitment policy of Faysal bank is flexible and feasible as that he was doing the internship from the bank and when there was a vacancy they called him if he was willing to do that desired job.

Our Personal analysis:

In our view Faysal bank has got a very professional approach to the recruitment policy for their bank because their policy of giving the opportunity to the old employees to be upgraded to the new post. Similarly the phenomenon of hiring a recruiting agency is very feasible for the bank and as well as for the new recruit.

Evaluate the interview as a selection technique and discuss a range of alternative selection methods available (P6)


Interview is a kind of face to face negotiation between two people for a particular purpose. An interview is a purposeful exchange of ideas, the answering of question and communication between two or more persons. Both Faysal Bank and Bank Alfalah consider interview to be useful for selecting employees. A selection interview is a selection procedure designed to predict future job performance on the basis applicant's oral response to oral enquiries.

A hiring and selection tool is an aid that helps interviewers focus on key success criteria, compare findings with others more effectively, and develop more rigors in evaluating and scoring candidates. To be effective, the tool must be supported by excellent skills in behaviorally-anchored interviewing. In addition, interviews must be sensitive to various guidelines about the kind of data sought in interviews. The guiding principle is that specific information related to protected classes of individuals or to personal activities or principles that are nor related to specific job activities should not be directly questioned. In addition, using these tools and processes provides an excellent opportunity to sell the company's approach to performance excellence, including tools that candidates can use throughout their employment to maximize their own performance.

General Process of a selection is as follows:

Selection involves number of steps through which the applicants are screened for choosing the most appropriate persons for available posts. The main objective of selection is to choose the right person for the vacant job.

The general process of selection is as follows:

Checking each applicant against the criteria given in the job advertisement.

Short listing of Applicants

Notifying Short listed Applicants

Conducting Interviews

Verifying Credentials

Ranking Applicants

Reference Checking

Writing Selection Report

Follow-up procedure for candidates who successfully completed the selection procedure

Negotiation of terms and conditions of the job.

Formulate up a contract or written conditions of jobs.

Plan initial orientation for the new employees.

Review the applicants list which are not interviewed and putting the potential candidates on cling to for future.

Telling the unsuccessful applicants for the desired post.

Alternative selection methods available to the Banks

Psychological Test:

Psychological test is the important technique in selecting personnel, and this is widespread at all levels and periods of life. And it is a measuring device, a yardstick applied in consistent and systematic fashion to measure a sample of behavior?

Purpose of Psychological test:

Selection: The emphasis is on finding a person with the right qualifications for a particular job.

Placement: The importance is depended on employees; the problem is to find the right kind of job for a suitable employee.

Characteristics of Psychological tests:

Standardization: It refers to the combination or customary of the conditions and procedures for administer a test.

Norms: It refers specifically to the average or performance on the test

Reliability: It refers to the regularity of response on a test. There are several methods for determining reliability:

Test Retest Method

Equivalent-forms Method

Split-halves Method

Validity: It is one of the most important requirements of any psychological test is that it measures accurately what it is intended to measure.

A number of steps are required to establish a testing program:

Conducting a job and workers analysis

Finding or developing a suitable tests

Conducting an item analysis of each question on a test

Determining the level of difficulty of each question

Establishing the reliability and validity of the test

Setting the cut-off scores

Types of Psychological test

Administration Test:

Individual & Group Test: Individual test is straight to one person at a moment in time, are more precious and hence, are used to slighter degree in industry than a grouping analysis.

Speed & Power Test:

Speed Test: It has a rigid time limit at which spot applicants taking the assessment ought to terminate.

Power Test: It has no time limit, examines are permitted as much time as they feel they need to finish the test.

Paper and Pencil and Performance Test:

Paper & Pencil Test: Is a kind of assumption test in which questions are in written structure and the answers are recorded on an answer page.

Performance Test: It possibly will take longer to administer than paper & pencil test and also may need a candidate testing operation.

Objective & Subjective score:

Objectivity: It is the greater part of the test used for automated selection aims are objective.

Subjectivity: In investigation score, as in interview, allows employee prejudices and attribute to enter into the tough circumstances. This can lead to distortion of the evaluation.

Behavioral Measure Test:

Cognitive Ability: (better known as intelligence tests) is used in individual selection. Intelligence test items relate mostly to educational material such as spelling, reading, or mathematics.

Interests: Interest inventories are of greater value in vocational guidance and counseling than in industrial personnel selection.

Aptitude Test: It must be created especially to measure the skills required by that job, but there are published tests that measure general aptitudes for mechanical and clerical skills.

Motor Ability: Many jobs in industry and the military require a high degree of motor skill involving muscular coordination, finger dexterity, or precise eye hand coordination.

Projective Test: Project test of personality was developed primarily for use in clinical psychology for work with emotionally distributed individuals.

Evaluate selection practices and procedures in two organizations comparing these to 'best practice' (P7)

Best Practices for selection

The selection process is concerned with the securing relevant information regarding the applicant. The selection procedure uses the screening devices so that the most efficient and professional employees should be available to the organization. Following is the process of a selection.

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background Analysis

Physical Examination

Job offer

Employment contract

Example of the Selection Process

Management Assessment

HR Assessment

HR Screening

Management Interviews

Job Fit Assessment

Resume Review

Candidate Sourcing

Role Policy Exercise

Job Stimulation Assessment

Tel. Screening Interview

Realistic Job Preview

Computer Skills Assessment


HR Interview

Selection practices and procedures by Bank Alfalah Limited


The selection procedure in Alfalah bank is based upon eight important principles, namely.

Initial screening interview

Completion of the application form

Employment tests

Comprehensive interview

Background investigation

Medical/physical exam

Conditional job offer

Permanent job offer

The following screening devices are used in the Alfalah bank during the selection process:

Selection form:

Each applicant is provided a selection form by the Administration department. The application form has to be filled by the applicant in his own handwriting submitted to the administration department before a specific date. The format of the application blank is given in the appendix. In the application, the personal data, educational qualifications and experience etc. of the applicant is give.


These applications are scrutinized and the candidates passing through the security are called for a written test. The test s conducted by a Board from the Head Office with the assistance of the Administration department at the concerned stations. The test is held is held is Lahore mostly.


Those qualifying the written test are called for an interview administered by the selection board assisted by the administration department. The interview session is also held in Lahore right after the written test.

Physical Examination:

There is usually a formal physical examination of the candidates. Another requirement is the submission of a formal Medical Fitness Certificate from a doctor.

Approval by the Competent Authority: -

After going through the whole process of selection, the list of recommended applicants is sent to the competent authority for approval. From component authority we mean the head HR department at Lahore. In above whole process experts from other organization or hired experts may also be involved so only the HR department of bank Alfalah does the approval.

Offer of Appointment:

After the approval, the Administration Department notifies the decision to the candidates through a "letter of appointment".

Orientation Period:

After appointment, the employees go through an orientation period i.e. Probation, for MBA/MCOM as executive the period is 5 weeks. And for employees of under-officer class, the period is 3-6 months.


After successful completion of the probation period, the employees apply for confirmation to a competent authority.


A promotion is an upward advancement in the organization to a position, which commands higher opportunities, greater authority, better service conditions and a higher rank. All the promotions in bank Alfalah are made on the basis of merit of each case, and not by the virtue of seniority alone.

Transfer to different jobs either to fill definite vacancies or to perform assignments to develop individual are made. The Head office in accordance with the promotion makes promotion and transfer to all categories and grades and transfer polices of bank Alfalah. The Administration department helps in co-ordination these activities of transfer and promotions.

Provident fund:

Provident fund is given to the employees of bank Alfalah at their retirement. Any employee of bank Alfalah can take the provident fund if he has spent more than three years in the bank because three years are the minimum requirement for provident fund. For provident fund five percent from the whole salary of the employee is deducted and the rest is contributed by the organization.

Selection practices and procedures by Faysal Bank

After the recruitment procedure is been held by the recruiting agency, a particular number of candidates are being send to the HR coordinator in Islamabad so that their talents could be tested by the Human Resource management department of the Faysal bank. Thereafter interviews are conducted for the satisfaction of the bank for the candidate refereed by the recruiting agency is capable of the desired vacancy.

The selection procedure of the bank involves the following steps:

First of all an acknowledgement letter is sent to each application submitted applicants to the recruiting agency hired by the bank, similarly the individual who is already employed and is capable for the vacancy is requested to submit his application as well to the head office as well.

Each of the applicants is then set against a certain criteria as given in the job prescriptions. Critical factors may include age, qualification, experience and so on.

The applications are then sort out into possible, marginal and unsuitable for the vacancy.

The possible are then more closely examined by the recruiting agency.

Then the candidate is being analyzed by the HR specialist and also by concerned manager of the branch where the recruit is required. This would be the final examine of the candidate.

Thereafter if the candidate is being selected, the job description latter along with the appointment letter is sent to the candidate.

Thus a new recruit is employed in the bank.

Make an effective judgment about different selection techniques that the organizations undertake (M4)

Both banks is using different selection technique such interviewing the applicants, assessing candidate through skills test and knowledge tests before selecting the candidates for the posts available in there organizations. While interviewing the employees and managers of these two banks we took their views regarding the selection techniques they undertake for selecting an appropriate employees we will discuss their view first then we will give our own judgment about the selection procedures of both these Banks.

Manager's view of Bank Alfalah:

Manager has the following views about their selection process:

Their selection process is totally centralized and the whole process of selection is carried out by the HR department.

The selection procedure is totally transparent and no unfair means are used during selection.

Equal opportunities are given to all candidates no gender, racial or religious discrimination.

We prefer those candidates who have some job experience about banking system for high jobs if we don't have any eligible person in our organization.

People who have more contacts or good PR are preferred because they can bring more investment to the bank.

Employees' view:

Candidates with strong financial backgrounds are more preferred as they can bring more investment. In the same way the candidates who have done their internship in Alfalah are more preferred over other candidates because the management knows their talent from their previous experience. There is no gender discrimination in selection process of AlFalah. According to interviewed employees some of the selection process also involves unfair means which includes favoritism and many other kinds of unfair means. But its selection procedure is still much better then any other private institutions

Our Personal view:

They are very much conscious about the selection process because human being is the most precious asset of an organization. They try to select those recruits, which are perfect for the job for which they are recruiting to help the upper management to achieve their goals. Their selection policy is very hassle-free which they are following. There is no discrimination in selection process they select those peoples, which are according to their need either male or female. They mostly preferred those candidates who can bring high investment because their job is totally monetary.

Relationship Manager's view of Faysal Bank:

Mr. Muhammad Yaver Khan Khattak, the branch relationship manager of Faysal Bank Omer Plaza Jehangirabad University Road Peshawar has a positive view about the selection procedure held for the recruiting of the candidate as he thinks that when an individual is being selected through a proper and clean channel, the new employee gives more then his/her potential to the bank. Similarly, this professional approach to the selection helps in creating more attractive image of the bank to the individual interested in getting a part of Faysal bank.

Employee's view:

Mr. Imran thinks that the selection held through which he is being examined is quite attractive for the new skilled, experienced, qualified and talented individuals who are not selected by the other financial institutions because of bribery, linkage or relationship with the management and he is quite satisfied with the selection procedure.

Our Personal Analysis:

In our view, the selection procedure followed by the bank really suits the talented individual interested in getting entrance as an employee in the Faysal bank. This portrays a good image of the bank and relates to the quality of selection procedures. Similarly, as we examined Mr. Imran's view gives agrees to our thoughts.