Understanding the business of bank alfalah limited

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Bank Alfalah Limited is a private type bank of Pakistan that is owned by the Abu Dhabi Group. In Pakistan, Bank Alfalah became functional in the year 1997. Initially it was started working as a public limited company under the companies Ordinance 1948. In the same year, in the month of November it started working as a bank. Bank Alfalah is a commercial bank.  Bank Alfalah has a partner ship with the Abu Dhabi Group that allows the bank to invest advanced and effective technology in order to widen the range of its services and products. Outside Pakistan, Bangladesh was the first place where Bank Alfalah got its establishment in 2005.

Currently there are 270 branches of Bank Alfalah in more than 75 different cities of Pakistan. The head office is located in Karachi at I.I Chundrigarh Road. Some major cities where Bank Alfalah branches are located are as follows:

Karachi, Islamabad, Lahore, D.I.G Khan, Sargodah, Sukkar, Rawalpindi, Peshawar, Hyderabad, Murree, Attock, Sialkot, Gujranwala, Quetta.

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"To be the premier organization operating locally & internationally that provides the complete range of financial services to all segments less than one roof."

MISSION:

"To develop and deliver the most innovative products, manage customer experience, deliver quality service that contributes to brand strength, establishes a comprehensive advantage and enhances profitability, in this way providing value to the stakeholders of the bank."

FUNCTIONS:

Branch banking

Deposits, Remittances, Foreign trade, Lockers.

Consumer banking

Credit Cards, Auto loans, Home loans, Consumer durables, RTCs.

Electronic Banking

Telephone banking, ATMs, Online banking.

Corporate banking

Short/Long Term finance, Trade finance, Structured finance.

Treasury & Investment

Money market, Forex market, Investments, Government securities, Correspondent banking.

HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is the organization functions that deals with the issues related to the people or employees such as compensation, hiring, performance, management, organization development, safety, wellness, benefit, employee motivation, communication, administration and training. Human resource play very important role in every organization. It basically deals with the people in the organization, their interrelationships, interaction, problems and their solutions in a friendly and smooth environment. HR department also handle different grievance procedures. Grievance procedures are process to resolve disputes, problems and misunderstandings associated with the staff of the organization. HR department also handle the disciplinary procedure. It also includes the process of development of training, skills, abilities and capabilities.

OBJECTIVES:

Some main objectives of HRM include:

Ensure right number of workforce for the right job, at the right place and at the right time.

To ensure employees satisfaction and development of their skills.

To facilitates training and development programs for employees.

To forecast future requirements: i.e. HR labor, availability of finance.

To reduce excessive labor turnover and high absenteeism.

To ensure organization is responsive to changes in the environment and the working conditions.

HIERARCHY OF THE ORGANIZATION STRUCTURE:

ORGANIZATIONAL HIERARCHY CHART:

EME SOCIETY BRANCH:

HUMAN RESOURCE PLANNING:

Human resource planning is the process of determining an organization's human resource needs. It involves forecasting and planning for the acquisition, retention, improvement and the utilization of HR in an effective and efficient way.

The process of HRP consists of six steps:

HR PLANNING:

ORGANIZATION'S STRTEGIES AND PLANS

1) Analysis of plans and objectives:

The organization should b clear about its objectives. The business policies such as profitability, financial plans, production targets, market forecast and budget, etc: are always based upon and should be related to manpower planning.

2) Analysis of HR requirements (demand):

This step involves forecasting HR needs based on organizational objectives. Several factors should be considered when forecasting demand. Factors like objectives of the organization, requirement of workforce, cost of labor, environmental factors and social norms are crucial for demand forecasting.

3) Analysis of HR availability (supply):

In this the organization checks the current position of their employees that how well they are doing the existing programs and then forecast what additional programs they can do. This step is the analysis of the present resources such as internal HR supply, external HR supply, analysis of HR utilization, etc.

4) GAP analysis:

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After doing the demand and supply analyses there may be become three situations:

First situation when demand = supply, so no actions are needed in this situation. Second situation is when there may be a surplus of workers so steps like early retirement, restricted hiring and down sizing are appropriate. Third situation is when there is a shortage of employees may rise so a scenario process of recruitment and selection should carry out.

5) HRP:

Organization need to prepare a plan which removes the gap between demand and supply within the financial resources available to them. This should ideally take the form of comprehensive human resource plan with various dimensions such as organizational structure, recruitment and selection, training and development, promotion, staff reduction, retrenchment, etc. so at that time not all the elements may require, only the prior matters then be incorporated into plans.

6) Monitoring and control:

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

(GARY DESSLER, 2005)

HUMAN RESOURCE PLANNING PROCESS AND FORCASTING:

ORGANIZATONAL STUDY:

To determine the organizational mission

Scan the organization environment

Set strategic goals

Formulate a strategic plan

Course of action is designed.

FORCASTING EMPLOYEE DEMAND:

Opening a new branch

Setting up or starting with new technology

Changes in customer demand

New services.

FORCASTING EMPLOYEE SUPPLY:

Transfers

Promotions

Job rotations

Overtime.

Banks making different type of forecasting like zero-base forecasting, bottom-up forecasting approach,

Use of mathematical models, simulation etc

Bank ALFALAH is used zero-base forecasting for current level of employment as the starting point for determining future staff needs in bank. Bottom-up forecasting approach: It is a forecast method in which each successive level of the ALFA`LAH, starting with the lowest and forecast its employee requirements in order to ultimately provide an aggregate forecast of employment needs: Use of mathematical models: mathematical models also use for forecasting HR requirements. Its show the relationship between demand and number of employees needed. replication it is the method for experimenting with a real world situation through a mathematical model representing the situation.

JOB ANALYSIS:

Job analysis is very impotent for any organization because on this basis many administrative and managerial decisions are taken, such training , selection and recruitment.

Bank Alfalah conduct job analysis when organization want to open new branch, setting up new technology or new service etc.

The purpose of job analysis is:

Collection of information about the different level of activities to be performed.

Collection of the data about education, skill, experience, personnel qualities

select the suitable person for right job

Job Analysis For Top Level Management:

The job analysis is done in the head office which is situated in Karachi , the Head office usually use internal sources as well as external sources to job vacancy , here given some example of job description and job specification of the managerial post of bank

MANAGERIAL JOB DESCRIPTION:

Job Title: Branch Manager

Job Summary: Promotes banking in the community and manages branch operations in the coordination with head office.

Tasks:

Highlight the services to attract people.

To operate in such a way that cost is minimized and services are maximized.

To check and issue loans on merit for the increase in bank revenue.

Job Specifications:

Experience: Minimum 2 year working experience

Personality: Attractive and charming

Qualifications: MBA or MS in relevant field.

RECRUITMENT AND SELECTION PROCESS:

BANK ALFALAH uses different procedures for recruitment to fulfillment of their need of expansion

Top management

Trainee officers

Recruitment is usually made on the basis of requirement, top management uses different approaches for recruitment they use internal and external sours for recruitment.

Trainee officers are fresh candidates usually from external sources, who are having the prescribed qualification for the post. Internal recruitment is also made by up graduation of the lower employees with the same qualification or better performances at the lower post in the same organization.

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BANK ALFALAH advertises the vacancies in popular newspapers, websites and direct applicants. That's all Depends on sources and ways.

They can advertises their vacancies through newspapers which can either be in English and Urdu language

They also adopted online recruitment process and other online job offering websites and also they use their on websites, where they advertise the vacancies. Also direct applicant's means that fresh graduates keep on submitting their CV's to the HR department from time to time and then HR department selects the efficient persons for interview and tests at any time a job is vacant.

SELECTION PROCEDURE:

Selection procedure involves viewing of candidates by which best appropriate person is chosen for a vacant post from a group of candidates. The main objective of the selection process is to choose the right person for the right job.

The selection process typically consists of following steps:

PRELIMINARY INTERVIEW:

The first step of the selection process is involving the viewing of candidates by first interview and short-listing the list of candidates

COMPLITION OF APPLICATION FORM:

Application form is the precise employment form used to get exact information which the organization wants for selections, In this step applicants are asked to complete the organization's application form

EMPLOYMENT TESTS:

presentation simulation test, work sampling, assessment centers.

Complete Interview :

interviews involve a face-to-face meting with the candidates to investigate the areas which are not addressed by the application form about the backgrounds like:

Formers employers

Previous job performance

Education

Legal status to work

Criminal records

CONDITIONAL JOB OFFER:

job is offered on conditions bases for certain period of time. After fulfillment of certain conditions and successful performance in that period the tentative job may becomes permanent.

MEDICAL/PHYSICAL EXAM:

an examination to determine an applicant physical fitness for essential job performance.

FINAL SELECTION:

individuals who perform successfully in preceding steps are now considered eligible to receive the employment offer.

Performance appraisal In Bank Allfalah

Setting goals for the appraisal system

Developing criteria for successful performance

Creating metrics for evaluating performance

Selecting reviews and reviewers

Considering the timing of feedback

Organizing logistics for the report and meeting

Giving candid and constructive feedback

Setting goals

Well-designed Performance Appraisal systems:

Recognize and record an employee's contributions

Give employees useful performance feedback

Enable a more effective and equitable reward system

Develop the professional capabilities of employees

Communicate the organization's values and culture

Help the organization make evidence-based, legally defensible personnel decisions

JOB EVALUATION:

Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established.

When using job evaluation the organization must focus on following points:

Detail job analysis.

Identifying relevant job factors.

Allocation of points.

Total score of points for job evaluation.

Job evaluation criteria of bank Alfalah:

In bank alfalah the job evaluation criteria is basic pay, the fixed salary or wages which contributes the rates for the job. In the skills based job, these rates may vary according to the skills and competence of a person. The rates are fixed by managerial judgment that what is required to recruit and retain the employee.

The official timing of bank is 09.00 AM to 06.00 PM, but almost all the employees have to work till 08.00PM. however, for this additional work they are not given any additional remuneration or over time pay.

COMPENSATION AND BENEFITS:

Different types of compensation include:

Base pay

Commission

Overtime pay

Bonuses, profit sharing

Merit pay

Stock option

Travel, meal, housing allowance

Benefits includes: dental, insurance, health(medical), vacation, leaves, retirement, taxes

DISCIPLINE:

regulation is a most for every organization that wants to move forward. It is very necessary for the smooth running of any firm. It is also very important for peace and harmony in an organization. Peace between employees, customers and clients. Discipline can be seen or defined as a force that prompts individuals, organizations, nation etc to observe rules and regulations stipulated which are deemed necessary for the effective and efficient running of the group, organization or nation.

There is a list of disciplinary procedure which is very important for every employee to follow. The rules and regulations are:

The bank Alfalah doesn't compromise on attendance and in bank maximum 85% attendance is very important for every employee. There are no excuses for formal absentees.

Bank working timing is 9pm to 6 am and there are no excuses to come after 9 pm.

Every employee should come in proper dress to the office.

Misbehavior with customers is not allowed.

Smoking is prohibited inside the bank, this rule for all, for employees as well as customers.

Taking interest in organization activities is the duty and responsibility of every employee.

GRIEVENCE:

It is a formal way of resolving a problem at work. It is a matter connected with the terms and conditions of employment or working conditions that affect an individual directly or affect their personal dealings or relationships with other staff members of the organization.

PROMOTION:

The criteria for promotion to a specified post usually merit cum seniority. A person will be eligible for promotion if:

Satisfactory records of service

Meets the criteria for promotion

Clear recommendation for promotion in his/her ACR

If there is any complain & any departmental proceeding in underway against him/her within the last three years then the employee will not be promoted.

DEMOTION:

Demotion is opposite to promotion. The person is demoted to lower rank or remains the same rank because the performance remains same for three years. The person may be expelled on the course of bad conduct in law, convict by law, fraudulent activities.

RESIGNATION:

When an employee wants resignation, he has to apply in HRD. He should notice HRD three months before he resign. If he not inform before three months then he has to pay three months gross salary amount. After an employee applying for resignation HRD will inquiry all the branches that the employee has any transaction with any branch or not. If the branches reports are ok then the Head of HRD approve their resignation and send to the employee's Branch Manager.

RETIREMENT:

HRD writes to employee CC line manager advising retirement date. Line manager arranges informal meeting with employee to discuss plans & confirm right to request continued working. Line manager writes to employee confirming CC HR. Employee chooses to retire at 65.

SWOT:

S = Strengths:

Bank is in rising stage so financial position is good.

expert and loyal workforce.

Low cost than other major banks.

Wide networking.

W = Weaknesses

Less advertisement

Slow in introducing new offers

O = Opportunities:

Bank alfalah may fully avail the facilities of e-banking.

Extension of international network of the branches.

Introduction of innovative products.

rising market.

Credit card facilities.

T = Threats:

Uncertain economic conditions.

Action taken by competitors.

Political instability.

SUGGESTIONS AND RECOMMENDATIONS:

After having a great experience of six-week internship in BANK ALFALAH, I have come to know some weak points that must be given attention for better progress. Following are some points which I suggested to be handling with more care and attention:

The web site of the bank is very less informative which has no any good impression on the visitors. The site is also not such updated with new activities. So I suggest that it should be updated with time for the convenience of the customers or visitors.

There is a bit misdistribution of work in the bank. Like some employees are over burdened with the work which creates lack of responsibility in others. So I suggest that the distribution of work should be fair.

The number of fax machines and photocopiers are less than the one they needed for proper use. So it should be managed in a way to save time and improved efficiency.

There is lack of communication channels in marketing department which affects all the departments directly or indirectly. So I suggest that the bank should spend and concentrate more in improving its communication channels.

CONCLUSION

An organization is a structure of several people who join their efforts for the achievement of common goals. The good employees are the key to success for an organization. Hence, one has to get the best to be best because the performance of the employees reflects the company's image and its position in the market. Better the quality of employees better the performance of company.

BANK ALFALAH is engaged in several business activities. All the departments are well-managed and goal directed. There are various different techniques and methods that the management goes through, in order to produce the desired outcome.

My work on this report highlighted different aspects of human resource management, like, HR planning, job analysis, recruitment and selection, performance appraisal, job evaluation, compensation, discipline, grievances, promotion, demotion, resignation, retirement and swot analysis along with suggestions and recommendations. I hope all the data which I collected supposed to be useful for the bank as well as for other readers.

My working experience was really great in bank alfalah. In my point of view the system of the bank is really well managed and highly adorable. The bank is providing its customers world class excellent services. They have always followed the right path for the fulfillment of their needs and their goals too. All the employees knew their responsibilities well and managed all their work in an effective and efficient way.

For such a short time period but still I m very happy to be a part of bank alfalah private.