allied bank hr by salman sarwar iiui

BY SALMAN SARWAR A PROJECT REPORT ON ABL

Acknowledgement

First and foremost, I am absolutely grateful to the almighty ALLAH, the most merciful

and beneficial of entire universe, who gave me the enlightenment, courage, chance, &

absolute sprits to accumulate my final project at “ALLIED BANK OF PAKISTAN”

(ABL).

Then I feel a sense of pleasure while saying a few words of thanks to

________________________________________________________________________

_______________________________________________, and finally to my supervisor,

Ms Samin Chaudhry for this kind guidance.

I am very thankful to the management of ABL for providing me the golden opportunity

of working with them. I pay my wholehearted thanks to Mr. __________________, Mr.

_______________, Mr. ________________, for their support and guidance at all levels.

Kamran Azam Butt

MBA-IV

2006-2008

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Executive Summary

The main emphasis of this project was to develop a clear understanding of the

organization i.e. ABL, especially its personnel department. The project covers all the

practices going on in the personnel department along with the history of the ABL, its

structure, its management style and roles performed by the managers, and finally the last

chapter provides the concluding words like SWOT analysis, recommendations and

conclusion.

In the report the objective was to focus those activities that take place in the personnel

section on regular basis and all those areas that are included in the domain of this section.

Its Organogram depicts the size and complexity of this particular section.

This report contains my subjective feelings and perceptions that may differ with any

other internee or with the management of the ABL, so all the recommendations and

conclusion constitute my own opinion.

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DEDCATION

Firstly I dedicate my project to my enables me to complete my project, secondly I also

pay homage and gratitude to my beloved parents who always dreams for his son to be a

successful person in life. I thanks to Grate Al Mighty Allah who blessed me .

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SSECTIONECTION 1 1

HHUMANUMAN R RESOURCEESOURCE M MANAGEMENTANAGEMENT ATAT AALLIEDLLIED B BANKANK OFOF P PAKISTANAKISTAN L LIMITEDIMITED

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AALLIEDLLIED B BANKANK OFOF P PAKISTANAKISTAN L LIMITEDIMITEDPPRESENTRESENT & H & HISTORYISTORY

Allied Bank is the first Muslim bank established on the territory that became Pakistan, Established on December 3,1942 as the Australasia Bank at Lahore with a paid up share capital of Rs 0.12 million under the Chairmanship of Khawaja Bashir Bux, the Bank had attracted deposits, equivalent to Rs 0.431 million in its first eighteen months of business. Total assets then amounted to Rs 0.572 million. Today, Allied Bank's paid up capital & reserves amount to Rs 565.7 million, deposits come to Rs 34 billion and total assets equal Rs.38 billion.

HISTORY

The Bank's history may be divided into several distinct phases. It began life as a Lahore based Muslim bank in a financial world, which was predominated by other communities. Experience gained during this period proved to be of great benefit in enabling the Bank to impart financial knowledge and develop banking expertise at a time when Pakistan suffered from a severe shortage of these skills. During 25 years of united Pakistan the Bank advanced forward in all areas of its activities. The 1970s was a difficult decade for all Pakistani banks. In 1971 the eastern part of the country was separated. Australasia Bank lost more than 50 branches and deposits worth Rs 54.444 million. Nevertheless, growth remained steady and by the close of December 1973, assets had risen to Rs 1.25 billion and deposits to Rs 849 million.

On 1st January 1974 all the scheduled banks, including Australasia Bank, were nationalized. Three small provincial banks were merged into Australasia Bank and on 1st July 1974, the new entity was renamed as the Allied Bank of

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Pakistan Limited. Allied Bank began its operations as a public sector financial institution.

During the 17years(1974-1991) the value of total net assets raised to Rs 24.4 billion and deposits to over Rs 21.3 billion with 747 branches network (Figures are for 10-09-1991, the date the Bank was privatized).

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OORGANIZATIONALRGANIZATIONAL S STRUCTURETRUCTURE OFOF A ALLIEDLLIED BBANKANK

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PRESIDENT

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

SENIOR EXECUTIVE VICE PRESIDENT

AUDIT & INSPECTION DIVISION

BUSINESS PROMOTION DIVISION

CREDIT DIVISION FINANCE DIVISION

TREASURY DIVISION HUMAN RESOURCE DIVISION

IT DIVISION INTERNATIONAL DIVISION

ISLAMIC BANK & PLAN DIVISION

S.A.M DIVISION


HIERARCHY OF HUMAN RESOURCE DIVISION (KARACHI)

AVP: Assistant Vice President OG: Officer Grade

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EXECUTIVE VICE PRESIDENT

VICE PRESIDENT

AVP AVP AVP

OG 1

OG 1

OG 1

OG 1

OG 2

OG 2

OG 2

OG 2

OG 3 OG 3 OG 3

Other General Officers And Staff


OORGANIZATIONALRGANIZATIONAL S STRUCTURETRUCTURE & J & JURISDICTIONURISDICTION(H(HUMANUMAN R RESOURCEESOURCE D DIVISIONIVISION))

RESPONSIBILITIES OF TRAINING WING

Training, courses & seminars

RESPONSIBILITIES OF EMPLOYEE TRUST FUND WING

SalaryDisbursement of staff loansLeaveBenevolent fundGeneral provident fundMarriage grantBurial expenses

Payment of retirement benefitsCash security depositsMedicalPension/recoveryStaff welfare fundIssuance of power of attorneyInsurance matter

RESPONSIBILITIES OF PERSONNEL WING

Fringe benefits of ExecutivesRegistrationIBP MattersAnnual/Special incrementsFixation of basic payProvision of security guardsStaff financesConfirmation of serviceIncentive incrementsStaff position

Updating of particulars of branchesRetirementTransfer/postingTA/DA BillsPromotionsAppointmentsHouse rent ceilingsOvertimeUniform

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TRAINING WING

HUMAN RESOURCE DIVISION

EMPLOYEE TRUST FUNDS WING

PERSONNEL WING


Staff strength Matters relating to temporary/contract employees

CCONTEXTONTEXT OFOF H HUMANUMAN R RESOURCEESOURCE D DIVISIONIVISION

The context of Human Resource Management given to the department covers different areas. To be functional and active Human Resource Division continuously analyzes the jobs and defines descriptions for each job.

Job description is the function that Human Resource Division workout before proceeding to other functions. Job Description at Allied Bank is done in following way

JOB DESCRIPTION

Human resource Division analyzes each job and it’s required outcomes. Job analysis is done by analyzing the past experience, emerging trends, and now after downsizing the responsibilities of each job is analyzed.

Allied bank holds documents about terms, duties, responsibilities, and specifications about each job

WORKING HOURS AT ALLIED BANK

Working hours at Allied Bank is inflexible. Timings are 9 to 5. However in some events of year like closing of accounts, deducting Zakat and other banking functions timings become different.

HUMAN RESOURCE INFORMATION SYSTEM

Allied Bank is maintaining Human resource information system at all of its regional offices and head office. The database and information system is manual at the time. In future bank is going to automate all the operations including Human Resource information system.

TEAMWORK AT ALLIED BANK

In Allied Bank unfortunately there is no proper working of team. In Bank only one team exists which is made from very beginning. Whenever every manager fined some problems or received tasks from

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other employees he assigns this work to that team. There must be separate teams for different task. But in Allied Bank there is only one team for all tasks. There must be a special team for special tasks. That’s why position of this Bank in the world does not exist in top 500 Banks.

EQUAL OPPORTUNITY

In Bank there is equal employment opportunity. In case of hiring employees there is no discrimination of sex. Males and females are hiring, equal opportunity for them. In some cases women related matters are solved preferable like canceling transfer way from home Bank is not following any quota system while hiring the candidates. In the bank handicap form the figure of 2%-3% of the employees.

MANAGING DIVERSITY

Due to absence of quota system in a Bank people came from different areas of country during the process of hiring employees. So it is a crucial situation for the Bank to manage diversity. Employees have different culture, norms, language etc. so how Bank manage this situation? Solution is that in a Bank there is a big hall for upcoming employees or new employees. So they sit there and communicate with each other. Even executive is sitting among them. By this way the Bank manages diversity.

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SSTAFFINGTAFFING

Staffing is the practice that is done rapidly in the bank during past ten years. Now bank is one of the overcrowded organizations of Pakistan. Bank has the policy of downsizing that is practiced strictly but still there is feeling that crowd of the employees should be less.

Our study regarding the staffing function of Human Resource Management is as follows.

HIRING PROCESS OF ALLIED BANK OF PAKISTAN

Allied Bank Limited is bound to follow the Government and State Bank’s rules regarding recruitment. The process of hiring an employee is as under:

AD IN NATIONAL NEWSPAPERS AND RECEIVING APPLICATIONS

For any vacancy it is obligatory to advertise in two Urdu and two English national newspapers under the longhead of bank. The advertisement contains the nature and description of the job, qualification and experience required, and the date of interview.

Applications of the candidates after the due date of receiving are transferred to interview panel for interviewing the candidates.

INTERVIEW

Interview of the candidates is being held by a selection board comprises of one person from Human Resource Division, one from concerned department, and one form head office. Interview panel check the candidate on the basis of qualification, experience, personality and communication skills of the candidate and jot down the rank on the sheet provided them for evaluation.

OFFER LETTER

When a candidate is selected an offer letter is being send to him that contains the terms and conditions, and the salary structure. Successful candidate has to return that latter with his signatures if he is willing to work under the terms written in the letter.

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APPOINTMENT LETTER

After receiving back offer letter from successful candidate bank issues an appointment letter that contains the joining date and area of duty.

It should be noted here that bank has not hired any person in last three years.

CHALLENGES IN THE HIRING

Mr. Aslam Hameed told us that biggest challenge that we face is the political interference during any hiring process.

MOTIVATION IN EMPLOYEES

At Allied Bank the employees have a motivation factor that is dominant over other factors. Bank employees are the owner of 49% shares of the bank. The motivation factor bank is using is:

“You are owner of 49% shares and the profit of the bank will be your. If you work hard you will get more profit and if you work leniently you will loose a big part of your money”

Human Resource Division is also motivating the employees by offering them benefits like interest free loans up to 80 times basic salary they are receiving. In effort to avail these types of benefits employees try to perform well and to get promotion to increase their pay scale.

INTERNAL/EXTERNAL RECRUITMENT

In the past bank was practicing the policy that for any post internal recruitment will be preferred. Under this policy the employees of the bank take benefit and influence the decision by placing their close relatives on the post whether suitable or not.

But now bank has different policy. Bank prefers external recruitment and the person selected hired on contract basis.

DOWNSIZING AT ALLIED BANK

Downsizing is now a prominent part of the bank and in the past three years over 1500 employees had leave the bank. The downsizing policy of the bank comprises of the two basic principles i.e.

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No employee will be forced to leave the bank. All the benefits of the employees will be given them at the time

of separation.The policy of downsizing is managed by offering “Golden Hand Shake” in which employees who volunteer to leave the organization is given all of the provident fund, gratuity, and the amount equals to three years pay. This scheme is quite successful and about 1500 employees had leaved the organization under the scheme in last three years. There is very little amount of employees who are discharged under disciplinary or other rule violation charges.

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EEMPLOYEEMPLOYEE D DEVELOPMENTEVELOPMENT

Allied Bank’s Human Resource division has the plans in the field of employee development that is usually described by the Pakistani Law. The procedures other then traditional one is not common. The study we had done in this regard is as under.

PERFORMANCE APPRAISAL

Performance appraisal method of Allied Bank is same as all the Government organization. In government organization the form used for performance appraisal is called Annual Completion Report (ACR). Performance appraisal is done once in the year. The format of that form is given herewith the report. The performance of an employee is judged mainly under the following criteria:

GENERAL EVALUATION (MAIN AREA OF EVALUATION)

Achievement actually made during the year Improvement made during the year compare with last year Prevention of frauds and forgeries made by him/her Maintaining discipline

FINAL EVALUATION

General reputation Living style and social life Moral and professional integrity Leadership qualities and administrative capability

TRAINING THE WORK FORCE

Allied Bank Limited has two training centers. One at Karachi and second is at Lahore. In Islamabad there was a training center but now it is closed. According to Mr. Aslam Hameed ABL provides training to its employees through out the year only in the Eid and national holidays this training process stops.

WHEN ALLIED BANK FEELS TRAINING NEED

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On the basis of ACR Human Resource Division review the performance of employees and find out their areas of weakness. E.g. if an employee is lacking in administrating the staff working under him he is given a schedule of training in the nearest training center

Other reasons to hold training programs are:

When new employee without any experience is hired Improving the interpersonal skills Refresh the knowledge of employees

EVALUATION OF TRAINING

Yardstick for evaluating the training results Human Resource Division checks the performance in area in which the employee is trained. The performance check is once again the ACR

CAREER DEVELOPMENT

Allied Bank currently has no prominent policy fore career development of the employees. The bank is following the policy that was set by government long period ago. Every employee knows that he will be promoted after a fixed period with fixed amount of increment. Employees didn’t look for opportunities around them and in result bank didn’t care to provide option for career development. Career development at the bank can be said as the dumb terminal at both ends.

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PPERFORMANCEERFORMANCE A APPRAISALPPRAISAL F FORMORM(A(ANNUALNNUAL C COMPLETIONOMPLETION R REPORTEPORT))

Some of the fields are not given in the form, as they were cut out when officer cut down the confidential portion of the form

NAME __________________ GRADE/DESIGN_________ ___________ STAFF NO______PAYSACLE______________BASIC PAY AS ON 31-12-2000______________________DATE OF JOINING______________DATE OF LAST PROMOTION_________________DATE OF BIRTH_________________________DOMICILE_____________________ACADEMIC QUALIFICATION_________PROFESSIONAL QUALIFICATION___________PAST RECORD, ADVERSE REPORT/DISCIPLINARY ACTION (IF ANY) DURING LAST THREE YEARS I.E. 1998, 1999, 2000__________________________________________________________________________________________________________________INCREMENT GRANTED W.E.F. 01-01-1998 01-01-1999 01-01-2000ANNUAL ________ ________ ________SPECIAL ________ ________ ________BRIEF DESCRIPTION PF THE POSITION HELD DURING ENTIRE CAREER IN BANKING

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PERIOD PLACE OF POSITION

DESIGNATION/POSITION HELD

NATURE OF ASSIGNMENT

1. Personal appearance and manners

2. (i) Is he capable of drafting letters and memoranda?

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(ii) Can he express himself fluently and coherently in English and Urdu?

(iii) Besides English which other foreign language can he speak or write with ease?

(iv) Is he capable of communicating effectively With Pakistani or foreign corporate mangers

And other important customers and handling their problems with confidence?

3. (i) Does he possesses adequate initiative or is he a routinist?

(ii) Is he a decision maker or does he tend to procrastinate and refer to his superiors matters falling within his powers, with the idea of shifting responsibility?

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Brief highlights of the initiatives taken and achievements actually made by the officer/executive in the following areas in the branch/regional office/and division/s and department/s etc. of the central office/head office under his jurisdiction, either on his own volition or in the light of guidelines issued by bank’s management on the subject:

(i) Improvement in genuine profitability of bank’s branch/s regional office/s under his jurisdiction

(ii) Elimination of leakages in income and control on expenditure and elimination of waste of institutional resources.

(iii) Improvement in the quality of advances and guarantees.

(iv) Improvement in bank system of work control and audit and making them efficient and cost effective.

(v) Prevention of fraud and forgeries.

(vi) Identification and ouster of officials and staff from the bank who are involve in criminal acts, enjoy bad reputation or are not discharging their responsibilities efficiently or honestly.

(vii) Contribution made towards elimination of excessive staffing levels and improvement of general productivity of officers and staff under his jurisdictions

(viii) Ability displayed in providing effective leadership and maintaining decipline among officers and staff working under his jurisdiction.

(ix) Promotion of adequate growth of bank’s genuine deposits particularly from private sector and elimination of window-dressing.

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(xi) Recovery of stuck-up advances.

(xii) Achievement of mandatory targets

(xiii) Timely reconciliation of inter branch accounts

(xiv) Improvement in the quality of service provided to bank’s customers and the general public and building up of institution’s image.

(xv) Improvement in general look and standard of tidiness of offices both within and outside.

Signature of reporting officer:___________

Date:_________

OBSERVATIONS OF THE COUNTERSIGNING OFFICERS

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FINAL EVALUATION

Evaluation of personal life and character qualities:

(i) General reputation

(ii) Style of living and social life

(iii) Moral and professional integrity

(iv) Leadership qualities and administrative capability.

2. Effectiveness in follow-up and implementation:

His effectiveness as a leader to have Bank’s policies and programmes implemented expeditiously.

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3. (Field is cut off) His perception of current and future

problems and prospects in respect of branch/regional office/division/department of the central office /head office falling under his jurisdiction or of the bank as a whole and his capability to develop adequate response in time.

4. Assessment of his potential as a professional banker and as an executive and recommendations about his future assignment/s where he will make maximum contribution to the building of building of bank image and its growth and profitability.

5. OVERALL EVALUATION OF THE PERFORMANCE

Assessment of his overall performance

so far

(Please evaluate performance under following mentioned categories.

MARKS

1. Outstanding 42. Very Good 33. Good 24. Average 15. Below Average 0

Signature of Evaluating officer: _____________

Date: _____________

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CCOMPENSATIONOMPENSATION

Allied Bank even though is partially privatizes but still it holds the patterns that was applicable before privatization. Bank not only provides the basic pay but have different kinds of allowances and reward that make the compensation different from other banks.

REWARD ON PERFORMANCE

BEST EMPLOYEE OF YEAR

Every year on the basis of performance and ACR best employee of the year is selected in all the branches, regional offices, and head office. The selected employee is given shield and presented as the model for the rest of the employees.

GOOD PERFORMANCE SHIELD

Each year when an employee shows good performance in his filed of performance his efforts are recognized by issues him shield. This shield is for all of those who show good performance.

CASH REWARDS

In cases where an employee shows outstanding performance in difficult situations he is rewarded with cash prizes. The amount of cash prizes is not fixed.

BENEFITS

Allied bank is not only offering the benefits prescribed by government but also provides additional benefits. Benefits that the employees of the banks are getting are as under:

PENSION

Pension is the right of every regular employee of the bank. The amount of pension is based on the government policies. What amount or percentage government fixes bank has to pay it to their ex-employees.

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GRATUITY

At the time of retirement bank pays a lump sump amount to the employee. The amount of gratuity depends on the period of service of the employee.GENERAL PROVIDENT FUND

In this fund employee and bank shares equally and at the time of separation employee not only the amount but also receives interest on it.

LEAVES WITH PAY

If an employee wants leave for long time i.e. over 6 week he is paid the amount equivalent to his per month salary.

OTHER BENEFITS

Benevolent fund Marriage grant Burial grant Medical allowance (amount spent on treatment) House rent allowance (95% of basic pay)

Pensions, gratuity, and general provident fund are provided under government law while other benefits are provided under bank rule. Some benefits are provided once in the job like marriage grant.

SPECIAL BENEFIT FOR EMPLOYEES

Employees of the bank can get up to 80 times of basic pay as interest free loan. E.g. if an employee is getting Rs 2000 as basic pay then he is entitle to get interest free loan of 160,000.

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GGOVERNANCEOVERNANCE

Allied Bank is following governance rules prescribed by State Bank as well as of the bank itself. In the following lines we are discussing the governance pattern of the bank.

COMMUNICATION STYLE

Allied bank has the pattern of downward communication. Based on the organizational structure of the bank communication required each level to pass on.

In the bank communication infrastructure is not so good. There is no or very less use of notice boards. E-mail culture is not fully utilized there even though facility is provided to the employees. Major channel of communication are formal letters and telephone. Memos are also en effective tool f communication.

INFORMAL COMMUNICATION STYLE

When we visited Allied Bank we observed that official language of bank is English while employees are communicating with each other in Punjabi language. Similarly the style that should be exists in the organization is not in the bank. We finally observe that informal communication style is very different from the policy of the bank.

DISCIPLINE MANAGEMENT

While meeting with Mr. Aslam Hameed he told us that bank always take care of employee rights but on the other hand also keep discipline because in the past employee took undue benefit of the management leniency

DISCIPLINE AT BANK

In the bank if an employee alleged to be guilty then the management takes following proceedings:

EXPLANATION LATTER

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Alleged employee is issued an explanation letter in which he is demanded to clear the allegations against him.

ENQUIRY

If employee fails to clear allegations an enquiry commission is settled that report regional controller (administration).

PUNISHMENT (IF ALLEGATION IS PROVED)

If allegation is proved then anyone or more of the following punishes the guilty:

Dismissed from dutyNo IncrementsDegrade by one or two levelsSuspension

APPEAL RIGHT FROM EMPLOYEE

An employee can appeal against the grievance. For this purpose government has established two institutes where the appeals of the employees are entertained against the decision of management.

WORKING WITH UNION

Allied bank has an employee union. The union according to the employees is responsible and working smoothly with higher management. While management thinking is against them. According to higher management Union effects adversely on the bank especially when bank was fully owned by government. They employ their relatives and affect the process of recruitment.

HOW HRD MANAGE UNION

Management at Allied Bank is managing Union by transferring the proactive members of the union constantly from one place to another.

Secondly management supervise all the activities closely in which role of union is strong so that there should be no element of unrest among the employees

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As a whole the role of union in the bank is under control and management is successful in managing the union but the steps taken by the management

SAFETY HEALTH AND ENVIRONMENT

Allied Bank is a servicing organization and has very low standard of “SHE”. How ever bank maintain the safety by appointing security staff at each office of the bank. Bank has the policy to compensate the employees who died or face disability during the job.

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SSECTIONECTION 2 2

SSTUDYTUDY T TOO B BRINGRING C CHANGEHANGE I INN HHUMANUMAN R RESOURCEESOURCE M MANAGEMENTANAGEMENT

OFOF T THEHE B BANKANK

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A SA STEPTEP T TOWARDOWARD C CHANGEHANGE

Allied Bank of Pakistan is huge organization with employees over 8000. After studying the Human Resource Management system of the bank that is dealing with such number of employees we find pitfalls in the system and in some areas there is no contribution from Human Resource Management.

Infect Allied Bank is one of the largest banks of Pakistan and the Human Resource Management of such a huge organization cannot be formulated in short period of time. This practice required a consultancy firm and lot of time. In the following pages we are highlighting and discussing the matters of core importance that a Human Resource Management system should contain.

What we think is that the suggestions and discussion areas in the proceeding pages will act the base stone to the change in Human Resource Management of Allied Bank after its privatization.

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FFRAMEWORKRAMEWORK OFOF H HUMANUMAN R RESOURCEESOURCE DDEPARTMENTEPARTMENT

Currently Human Resource Division and Administration Division and is working sight by sight. It is the common thinking at the bank that Human Resource Management and Administration are the same things and the different names for the same job. Bank is operating in many fields of Human Resource Development but still there is room for development. Following are the areas that we think that Human Resource Department should cover.

STRUCTURAL CHANGE IN HUMAN RESOURCE DIVISION

SEPARATION OF HUMAN RESOURCE DIVISION FROM ADMINISTRATION DIVISION

First of all it is needed that Human Resource Department should be separated from Administration Department to make the Human Resource Division specialized and full functioned department.

CHANGING HIERARCHAL STRUCTURE OF HUMAN RESOURCE DEPARTMENT

Current structure of Human Resource Department is bureaucratic and involves different lines of officers. In such type of system communication became inefficient and the proceedings of the official matters becomes slow. To avoid such inconvenience Bank should introduce flat organization concept in all the departments especially in Human Resource Division to make it proactive.

HUMAN RESOURCE FUNCTIONALITY

FORMULATING SOLID HUMAN RESOURCE STRATEGY

Currently Human Resource Division is mainly concerned with the employees related matters while other responsibilities of Human Resource Department like implementing corporate policies, molding employees to achieve organization’s goals, making possible an efficient communications between employees etc

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Human Resource Division of the bank has to realize that Human Resource Management is not just the name of hiring, downsizing and managing people. Human Resource Division should have the structure and policies to communicate the goals of organization to employees, build a structure to implement corporate policies effectively, creating a decent and prestigious environment in the bank to build relaxing feelings for the employees. In this context Human Resource Division can be proactive provided that after privatization efficient Human Resource professionals be hired.

EQUAL OPPORTUNITIES

Bank is in much better position among the other governmental organization in the scenario of equal opportunities. But still bank has the area in which there is room for further development. This are is:

ADJUSTING EMPLOYEE WITH DISABILITIES

Currently bank has 2%-3% employees with disabilities. It is the matter of fact that disables can also work efficiently if they are provided equal opportunities. So it is needed that disables should be adjusted more than currently employed.

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SSYSTEMYSTEM F FOROR S STAFFINGTAFFING

Bank is now going to completely privatize. In the near future it is foreseeable that new management would hire new workforce. So that it is required patchwork to smoothen the staffing function of the bank to hire professional and sincere employees in future. What we think is that bank should leave the traditional system of hiring. In the new hiring system following elements should also kept in mind:

Selection should not be taken only on formal interview. It should follow by different test of personality, and professional skills to avoid the shocks that bank has suffered in the past.

In the past bank has not emphasizes much on socializing the employees. It is required that each and every employee should be known to banks policies, procedures, and performance expectations.

PERFORMANCE APPRAISAL

In the bank we observe that Bank has the pattern of performance appraisal that is too old and the document that used for appraisal is too long, boring and is of repetitive nature. In the modern environment of business performance appraisal form should be concise and meaningful.

We suggest that Allied Bank should change the performance appraisal form. In this regard we are providing a performance appraisal form that is originally taken from American Book but still applicable in Pakistan except few exceptions

RULES REGARDING PERFORMANCE APPRAISAL

OPENNESS OF REPORT

In the bank it is the rule that ACR of an employee is kept confidential and he don’t know anything about his report. I our opinion an employee should be disclosed his annual report so that he can check his performance himself in spite of issuing warning letter during the year.

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PERIOD OF PERFORMANCE CHECK

Secondly bank management should check the performance semiannually to keep updated about the performance of employees.

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This form is taken from An American book. However it could be a base stone for designing new performance appraisal form

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APPRAISAL FROM CUSTOMERS

Banking is the business that is directly related to general public and an employee can be judged by the appraisal from customer. This practice will increase the accuracy of performance check as well will improve the behavior of employees with general public.

TRAINING MATTERS

Currently bank is operating two training centers and is spending lot of money on it. But the results are different from what they should be. The behavior, working speed, personality and other attributes of the employees are not seem to refined as they should be as professional of a big bank.

Another issues is the use of technology. We observe that there are computers in many locations of bank but still employees are using traditional file systems. The computers were showing screen savers and employees are busy to tie and open the strips of huge files. It is happening where IT department is working.

In these conditions we suggest that there should be full utilization of resources and especially computers should be used effectively. Our suggestion will be fruitful when training of the employees will be done in new ways and to introduce them with the new facts of international baking environment and the role of technology there. We also suggest that employees should be trained intensively about information technology periodically in a year.

CAREER DEVELOPMENT

Bank currently has no policy for the career development of the employee. Similarly employees are not initiative enough to request the bank in this are. Infect this function of Human Resource Management is not present in the bank. Our suggestion is:

Career development is the area where by emphasizing’ the workforce of the bank will be more productive and efficient. For this purpose bank has to realize that if an employee will improve his skills or education on the expenses or resources of the bank’ he will pay them back in form of good business and progress. So there should be allocation of resources for the career development of employees.

However bank has to take care that:

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There should be no exploitation of resources by the employees behind the stage.

Employee will capitalize his skills that he getting on bank’s resources.

There will be no political activity will be held by union to utilize the resources in negative ways.

COMPENSATION

The structure of compensation is same as many governmental organizations and most part of the compensation are almost like fixed part of pay. What we suggest in this area is that:

Compensation is one pf the basic rights of the employees but it should be strictly linked with the performance of the employees. When an employee know the fact that now he will get for what he will struggle then he will work with more motivation and efficiency.

A system that determines the points for each job will be suitable scale for compensation.

But it should be cared that

The policy should be open to all employees to eliminate the factor of no confidence from employees on the system.

COMMUNICATIONS

Allied Bank has network in all over Pakistan and in the organization like Allied Bank bureaucratic style of management is not appropriate. The gap of communication (i.e. the employees of the bank are not known to mission statement and there is no vision statement on the official documents) Allied Bank is facing might be due to this type of governance. We suggest that:

Allied bank should decentralize its system of management and introduce the flat organization system.

Bank should use its technology resources efficiently and the IT division should have strong communication with Human Resource Division to provide modern communication system throughout Pakistan.

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CCONCLUSIONONCLUSION

Allied Bank is oldest Bank of Pakistan and had shows great development till nationalization of industries of Pakistan in 1970s. It is hard luck of Pakistan as well as for its industries that nationalization put adverse effect on them.

Allied Bank was one of those victims and suffers depression till 1991. After partial privatization of bank it shows growth and get much better position among the banks of Pakistan. But still bank is facing difficulties.

Bank has the potential to grow up and to appear as the major player of Asia if Human Resources of the bank will be utilized at its peak level. Just structural changes in Human Resource Division of the bank will impact rest of nine departments. Of course it will be a turning point for the bank and bank will enjoy prestigious status in the banking industry.

The fate of Bank is not to face recession for long period of time but to glitter as the pride of Pakistan. We are looking this status of the bank in future, as the new team will manage the bank after short period of time.

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allied bank hr by salman sarwar iiui

Documents

project report

abl section

management of abl

muslim bank

final project

abl dedcation

abl acknowledgementfirst

australasia bank