Professional Documents
Culture Documents
Human Resource Management Bank Alfalah HRM Report
Human Resource Management Bank Alfalah HRM Report
SUBMITTED TO:
Miss Naila Akber
HND BUSINESS
SUBMITTED BY:
Sayed Muhammad Ali
Muhammad Haris
Assessment Brief
1. Unit and Assessment Details
Course Title:
Unit Name:
Assessor:
Internal Verifier:
Assessment Title:
Assessing in:
Number of Words:
Outcomes Covered:
Issue Date:
Due Date:
HND Business
Human Resource Management
Ms Naila Akbar
Ms Sadaf Ijaz
Analysis of HRM practices, procedures for obtaining suitable
employees, principles and procedures for monitoring employees,
employee exit from the organization.
Group of 3
3000 words (Total 30 Pages Maximum)
2, 3, 4
May 18, 2009
July 04, 2009
Group Members
College
No.
Learner Name
7190
7207
Muhammad Haris
Responsibilities
Learner Signature
Learners Declaration: I confirm that the work submitted for this assignment is my own.
Date
04/07/2009
Outcomes Covered
Outcome
2
3
4
Description
Evaluate the procedures and practices used for obtaining suitable
employees
Establish the effectiveness of principles and procedures for
monitoring and rewarding the employee
Examine voluntary and involuntary forms of employee exit from the
organization and the termination of the employment relationship
Synopsis
This report is based upon the human resource management and its practices by two competitor
banks i.e. Bank Alfalah and Faysal Bank.
The report is divided into three outcomes. In the first outcome, we analyzed the objectives and
the process of human resource planning and evaluated the systematic approach to recruitment
and then application of the same on two banks for finding the difference in their human resource
planning department. Also we investigated the recruitment and selection procedure in these
banks with comparison.
In the second outcome, we evaluated the application of appraisal procedures and carried out a job
evaluation for Bank Alfalah. The evaluation is made about the effectiveness of disciplinary and
grievance procedures which are in practice in the Bank Alfalah. Also we have explained the need
for maintaining personnel records by the organization.
In the last outcome, we have discussed the exit procedure used by the two banks and the need for
effective management for employee dismissal. We evaluated the selection criteria used for
redundancy and at the end we proposed techniques for dealing with redundancy.
A brief conclusion is given at the end of report.
Introduction
Authorization:
This assignment was given by Madam Naila Akbar teacher for the subject Human Resource
Management (HND business, semester 2) to our group which comprises of Sayed Muhammad
Ali and Muhammad Haris. We were given the task for submission of report on the analysis of
HRM practices and procedures for obtaining suitable employees, principles and procedures for
monitoring employees and employee exit from the organization. 04th July, 2009 was given as a
last date for the completion of this assignment. For this purpose, we selected Bank Alfalah
Limited.
Sources:
In order to get clearer concepts regarding the analysis of HRM practices and procedures for
obtaining suitable employees, principles and procedures for monitoring employees and
employee exit of Bank Alfalah. Interviews were conducted of the higher authorities, which
helped us a lot to come up with comprehensive analysis and preparing our report on the said
bank. We also took help from few books such as HND Human Resource Management and other
management books as well as search engines like Google and yahoo, which also helped us in
terms of theory.
Limitation:
The main hurdle was a lack of proper human resource department in the branches of Banks.
Therefore the information collected was not in detail or comprehensive.
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Experience: This job is for the trained person and should have minimum 2 years of working experience.
Previous job performance should be good.
Personality: Attractive
Qualification: MBA or MS in relevant field.
In the second step the Bank Alfalah make plans for motivation of their employees by giving
them different sort of targets and incentives on their achievement for bringing excellence in the
performance of employees in their organization.
In the 3rd step, employee goals and the organizational goals are interlinked.
Following are the different situations for which Bank Alfalah carries out different human
resource planning.
Transfers
Internal Movements (promotions)
Job Rotations
Overtime
similar in nature. Some policies of Human Resource are different technically, but the overall
HR practices, for example- job analysis, Human Resource Planning are almost same.
Recruitment:
Recruitment is the formal process of selection of employees. It is the systematic process of
searching of candidates for employment and encourages them to apply for jobs in the
organization. The overall aim of recruitment is to obtain the quantity and quality of employees.
Effective recruitment is very important for any organization because it is the action in which
management goes into labor market to find individual who is best suited to the job. This is done
only when they communicate the position in such a way that eligible job seekers respond in
positive manner. Similarly the organization must provide essential and clear information about
the job, so that candidates who are not eligible on the given criteria can consider themselves out
of job candidacy. The good recruitment should attract the qualified and discourage the
unqualified, and this will also minimize the cost of processing unqualified candidates.
Internal
Recruitment
External
Recruitment
Advantages
Disadvantages
Selection Process:
Selection process Involves screening of candidates by which best suitable person is chosen for a
vacant post from a pool of candidates. And rejecting the other who are not found eligible as per
their qualifications and suitability for job. The main objective of the selection process is to
choose the right person for the right job.
The selection process typically consists of eight steps:
1. Preliminary interview: The first step in the selection process involves screening of
candidates by initial interview and short-listing the list of candidates.
2. Completion of Application Form: Application form is the specific employment form used
to get specific information which the organization wants. In this step applicants are asked to
complete the organizations application form.
3. Employment tests
Performance simulation test (job behavior), In order to test the aptitude of candidates.
Work sampling (In order to check their skills for the prescribed job)
Assessment centers (In order to evaluate candidates individual and group performance)
4. Comprehensive interview: Interviews involve a face-to-face meeting with the candidate to
investigate the areas which is not addressed by the application form or tests.
5. Background investigation: Verification and investigation from the application form about
the backgrounds like:
Former employers
Previous job performance
Education
Legal status to work
Criminal records
6. Conditional job offer: Job is offered on probationer bases for certain period of time. After
fulfillment of certain conditions and successful performance in that period the tentative job
may becomes permanent.
7. Medical/physical exam: An examination to determine an applicant physical fitness for
essential job performance.
8. Final selection: Individuals who perform successfully in preceding steps are now considered
eligible to receive the employment offer.
Some time contractual employment is made till the availability of permanent employees for the
post. Such type of employment is usually made on emergency bases.
Following sources are used to invite applications from suitable candidates for internal and
external recruitment:
Newspapers:
Bank Alfalah advertises the vacancies in popular newspapers, which can either be in English
or Urdu language according to the need of job and situation.
Website:
Bank Alfalah has also adopted online recruitment process like ROZEE.PK and other online
job offering websites, where they advertise the vacancies. Bank Alfalah also has its own
website, where they advertise the vacancies.
Direct Applicants:
Fresh graduates keep on submitting their CVs to the HR Department from time to time. HR
Department selects the effective persons for interview and tests whenever a job is vacant.
Selection Procedure:
After the recruitment, the selection of most reliable and capable applicants is made at Bank
Alfalah under the supervision of HR personals.
First of all Bank Alfalah advertises in the media (newspaper, magazine, website etc) that
situation is vacant for the following post, for which their criteria are:
o Candidate must be a citizen of Pakistan.
o They must be qualified in the relevant field having graduate or post-graduate degree.
o Should have attained the age of 18 years but not be exceeding the age of 35 years.
Applications are invited from candidates on prescribed forms against the vacant posts advertised
in the newspapers, after advertisement different people apply for the job. In the preliminary CV,
irrelevant applications are screened out and relevant applications are called for written test. This
test is examined by IBP (Institute of Bankers Pakistan). The test pattern is of GMAT format in
which they judge the person job behaviour and skills of doing individual and group simulation
tasks. Then there is an initial interview in which one topic is given to each candidate and asked
to debate on that. Further screening is made from the group discussion which is examined by 10
HR executives of Bank Alfalah. In this way they judge their personality traits and leadership
qualities. Now final interview is conducted by the president of Bank Alfalah at the regional
office. Then job is offered to deserving candidates who are sent for training to the head quarter,
which is based at Karachi where they undergo intensive training in various fields. After
completion of training they are sent to different branches.
Website:
Faysal Bank has also adopted online recruitment process like Bank Alfalah. They advertise
the vacancy on rozee.pk and other online job offering websites.
Upgrading of present employees according to their performance.
Retired persons are also reemployed in case of shortage of qualified personnel or increase in
load of work.
Selection Procedure:
The employee selection procedure in FAYSAL Bank is similar like the other banks and
organizations. They select the employees by the following way:
First of all Faysal Bank advertises in the media (newspaper, magazine etc) that situation is vacant
for the following post, for which their criteria are:
Candidate must be a citizen of Pakistan.
They must be a business graduate.
Should have attained the age of 18 years but not exceeded the age of 35 years.
Applications are invited from candidates on prescribed forms against the vacant posts advertised
in the newspapers, after advertisement different people apply for the job.
Scrutiny of application
Short listing
Issuance of call letter
Test
Listing on the basis of test
Call letters for interviews
Interviews-Panel Interviews
Final short listing
Offer letter
Joining
Training
Posting
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Performance Appraisal:
Performance appraisal is the assessment of an individuals performance in a systematic way, in
which the performance is being measured against such factors i-e job knowledge, quality &
quantity of output, initiative, leadership abilities, co-operation, judgment, loyalty etc. Assessment
should not be confined to past performance alone. On the basis of performance appraisals of
employees, certain decisions are made i-e promotion, training, transfers, bonuses & incentives
etc.
Appraisals play a very important role in the employers management and their performance. The
main objective of performance appraisal is to improve employees efficiency. Appraisal can be
used by the organization in the following ways.
To improve employees efficiency and their performance
Develop confidence and hopes in employees about their career development
Give feedback of the employees to the managerial staff
Helps in motivating employees
Provide uniform mechanism of evaluation to all employees
Establish direction through objectives for performance
Provide standard criteria for promotion and increase in the salary of employees
Provide justification for transfers and discharges
Helps in better understanding between employees and supervisors
Traditional Methods:
Traditional methods are comparatively older methods of performance appraisals which are only
based on personal qualities i-e knowledge, loyalty and leadership etc. Following are different
traditional methods:
Unstructured Method: In this method, appraisal process doesnt follow any specific structure.
It is only based on the description of the employee by the superior i-e judgment of leadership
qualities by the superior.
Ranking Method: In this method superior is asked to rate all the employees from highest to
lowest. Thus it is easy for superior to rate the best and worst one among all.
Paired Comparison: In this method, each member performance is compared with every other
member in the group. Thus a ranking system is formed and best one is chosen.
Man to Man Comparison: In this method performance of employees is determined on certain
factors i-e initiative, leadership and other personal qualities which are compared with another
employee.
Forced Choice Method: A type of method in which two options is given to the rater and the
rater must choose on of them about employees work behaviour.
E.g. is he loyal? (Yes or No)
Essay Method: In this method evaluator writes an essay about employee strength, weaknesses,
and past performance. But there is a major disadvantage in this method i.e. personal clash.
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Checklist Method: In the checklist method, a rater is given a list of behavioural description and
the evaluator merely goes down the list and check off Yes or No to each question.
Modern Methods:
Modern methods were formulated to improve upon traditional methods. Modern methods
remove the shortcoming of old methods such as biased and prejudiced. Some of the modern
methods are:
Behavioral anchored rating scale (BARS): A performance appraisal technique that appraises
an employee on example of actual job behavior rather than traits. Advantage of this method is
the focus on specific and measurable job behavioral and the disadvantage is time consuming.
Management by Objective (MBO): This method is not done by a single person (Boss) but it is
done through mutual communication between boss and employees. It is the process of goal
setting and feed back.
360 degree feedback:
A performance appraisal method that utilizes feedback from supervisors, employees and
coworkers. This is thorough process but time consuming.
Job Evaluation:
It is the systematic approach for finding the value of the job offered by an organization. In this
we review the job not the person who is performing it. One of the simplest methods of analysis is
to break it into different factors; each factor is then allotted some points or score, on the basis of
those points job is then evaluated e.g. level of experience, knowledge, skill required etc are the
factors which score points in the process of evaluation. The main purpose of job evaluation to
give employee wages in such a way so that, they feel motivated.
When using job evaluation the organization must focus on these points.
1. Detail jobs analysis:
The details job analysis will clearly provide detail information about the following main tasks.
The specific skills and abilities needed for certain job
The value of assets
The working conditions
The number of employees answerable to the employer
2. Identifying relevant job factors:
These includes skills needed for the job, qualification required, the level of responsibilities,
physical efforts levels needed and better working conditions
3. Points are allocated for each job factor
4. Total score of the points give evaluation of their job
In jobs evaluation, jobs that require greater qualification, more responsibilities and duties should
be paid more than jobs with lesser requirements. The salary of the employee will be according to
the responsibility which they have to perform.
(Job and work analysis, Date Accessed 28/06/2009)
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Discipline:
Discipline is the set of rules and regulation for people to follow usually in an organization. If
organization did not have any discipline and rules about the way their employees should behave
then simply they would be free to do anything they want.
Grievance:
It is a formal way of resolving a problem at work. A grievance is a matter connected with the
terms and condition of employment or working arrangements that affect an individual directly or
affect their personal dealings or relationship with other staff members of the organization. It
occurs when employee feels him self that he/she is treated wrongly by his supervisor or
colleagues.
Rules and regulations should clearly be stated: For discipline to be instilled in employees
there should be clear rules and regulations that stipulates what is expected of each employee
and what is not expected of them.
The rules and regulations should be constantly updated and reviewed. This will make it
possible to do away with rules that are no more necessary and addition of new ones that are
needed.
There should be no discrimination in enforcing rules and regulations. To make sure that there
is discipline in an organization there should be a general rule for every defaulter.
Another important thing is that it will prevent employees from getting involved in
indiscipline should be discouraged and prevented.
There should be proper communication of the rules concerning discipline in the firm. These
rules should be written in the employee handbook and also put in notice boards. By so doing
no employee can say he or she is not aware of the rules.
Disciplinary actions should be in such a way that defaulters will not want to be disciplined a
second time after defaulting for a first time.
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Dismissal:
It is the termination of the employees contract by the employer with or without notice. It is also
the expiry of fixed term contract without renewal.
If an employer keeps an employee in his employment, but on a different contract the employer is
terminating the existing contract and it will count as dismissal. There is a specific procedure for
dismissals of employee. Every organization has different dismissals procedure but the general
dismissal procedure is mentioned below
Friendly Talk:
If the mistake is for the first time and is not so serious then employee should be warn via friendly
in formal talk for not repeat the mistake in future.
Oral Warning:
If the mistake is repeated again then oral warning given to the offender. The human resource
person invites him talks to him and warns him again to be aware such a minor actions in the
future.
First Written Warning:
When the mistake is again done by the offender then written serious warning is given to him.
The mistake which offender is doing again and again is converting in to the habit of the offender
to avoid this habit an organization gives a written warning consist of the details of complaints or
mistakes to the offender. In this written warning the organization warns him to not repeat this in
future.
Final Written Warning:
If an employee making a habit of such type of minor mistake again and again then this action
damages the reputation and image of the organization then a final written warning given to him.
This warning letter consists of the details of the minor mistakes and improvement of the
mistakes. The organization strictly warns him to not repeat these mistakes in future other wise
he/she will be suspended from the job.
Suspension:
If the mistake is strong then the employee may be suspended from the job without pay.
Depending on the level of the mistake the suspension may take up to two months or more.
Demotion:
If the offender is not changing him self then he will be demoted from his post or position. Then
this position is given to other staff member who is perfect for this position.
Dismissal:
This action is the last tool for employee. If employee does not improve his mistakes after several
warnings then dismissal tool to be used by the organization. This is the strongest action that can
be carried out on an employee and he/she will be dismissed rightly.
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Redundancy:
The fact that the requirements of the business for employees to carry out work of a particular
kind in the place where they were so employed have ceased or diminished or are expected to do
so.
(http://www.bbk.ac.uk, Date Accessed 30/06/2009)
Work that used to be done by the people become mechanized can be done by the
machine.
Business slow down due to lower sales or production.
The business relocates.
A mergers or takeover happens.
The business restructures or reorganizes.
Change in tariffs or exchange rates.
Consultation:
The organization, through line managers, and supported by the Department of Human Resources,
shall undertake meaningful consultation with the recognized Campus Union representatives, with
a view to reaching agreement on all matters covered by relevant legislation. The process which
shall normally be followed is set out in the supporting management guidance notes and shall
depend
upon
the
prevailing
circumstances.
Where it is not possible to avoid redundancy the requirements of legislation shall be met and a
reasonable period of time shall be allowed for meaningful consultation to take place with staff
and Campus Union representatives. The following are the steps used for redundancy.
Selection:
Selection criteria shall have regard to the number of redundancies necessary and be based
upon the skills required to meet the current and future needs of the organization. Criteria may
include:
Skills and experience in relevant field.
Qualification.
Attendance records.
Disciplinary record.
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If any employee of bank Alfalah wants to resigns from the job then proper procedure will be
done. First of all an employee gives a written resignation letter to the organization in which
he/she mentioned that he wants to resign from the job. After this then the organization start
works on this resignation letter. When this resignation letter comes in process then the
organization decides to accept or deflects this resignation letter. If this resignation letter accepts
by the organization then the exit interview will conducted. The process for this exit interview is
to provide feedback on why the employee is leaving the job what they liked or did not liked
about their employment and what areas of the organization they feel need improvement. After
exit interview the resignation will be accepted by the organization. When the resignation will be
accepted then the employee will be allowed to leave the job. After this the exit check list will be
done this will include the following thing for example
Clean out entire office (desk, files) return all supplies to production, take all personal
belongings.
Return all companys credit cards.
Hand in all copies of reports and manuals.
Delete software from personal laptops or home computers.
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Comparison:
There is not so much big difference between the exit, dismissal and redundancy procedure of the
organization that we selected .the organization that we selected for this comparison is bank
Alfalah and Faysal Bank. Most of the points are same in both banks. But there is also little bit
difference in their exit and dismissals procedures but the redundancy procedure is same in both
banks. The Bank Alfalah exit procedure is much more complicated as compare to Faysal bank.
They give resignation to the employee after a lot of inquiry but Faysal bank not does so much
inquiry in exit procedure.
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Employees Turnover:
Employees Turnover is the rate at which an employer gains and loses employees. Employee
turnover is costly to the company because immediate vacuum is created which is difficult to fill.
Placement of inappropriate person may take place before recruitment of suitable person. Thus lot
of damage to the organization may occur in the due course.
Employee Redundancy:
When an employer decides that employee job is not needed to be done by any one then this job
becomes redundant. It is the job which is redundant, not the individual. Employees redundancy
may take place due to following two different reasons.
1. If the time period of job is over or the contract is finished
2. Sometimes employees are working properly and the organization also doesnt want to loose
their services but situation arises due to which organization is compelled to take this step.
Following are the situations in which organizations are bound to go for redundancy.
The work which was formally performed by man is now done by machines e.g. computer has
replaced hundreds of employees.
When the business is shifted from one place to another.
When the job for which employees were hired exists no longer.
When two businesses merge with each other.
When there is need of minimizing the cost, staff is reduced.
Poor planning and falling demand of the product.
Economic problems or change in technology.
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CONCLUSION
Organizations exist when two or more people work towards achieving common goals. An
organization can never be better than the people it hires. Hence we have to get the best to be the
best because the performance of the employees reflects the companys image and standing in the
market. Better the quality of the employees better the performance of the company.
Bank Alfalah is engaged in several business activities. There are various different techniques and
methods that the management goes through, in order to run this organization. To stay on top,
Bank Alfalah has adopted modern and up to date human resource management concepts. They
adopted such approaches that they have been able to keep their employees satisfied and happy
for so many years.
This report has highlighted different aspects of human resource management i-e HR planning,
job analysis, recruitment & selection, hiring, dismissal, evaluation and assessment of employees
along with personal recommendation and procedures that might be useful for the Bank Alfalah
HR management.
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REFERENCE LIST
Book:
BTEC. (2001) HND Business: Human Resource Management: BPP Publishing.
Gary Dessler (2005), Human resource Management, prentice hall of India New Delhi
Web:
Job Evaluation (Job and work analysis, Date Accessed 28/06/2009)
www.jobandworkanalysis.com/research7.pdf
Persons:
Arbab Ghayoor Khan, In-Charge Human Resources Department, Bank Alfalah University Road Peshawar.
Miss Orakzai, Bank Manager, Faysal Bank Peshawar City Branch.
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AGENDA
Course Title:
Unit Name:
Assessor:
Internal Verifier:
Assessment Title:
Assessment Method:
Assessing in:
Number of Words:
Outcomes Covered:
HND Business
Human Resource Management
Ms Naila Akbar
Ms Sadaf Ijaz
Analysis of HRM practices, procedures for obtaining suitable
employees, principles and procedures for monitoring employees,
employee exit from the organization.
Report
Group of 3
1500 words (Total 25 Pages Maximum)
2, 3, 4
Issue Date:
Due Date:
30
AGENDA
Course Title:
Unit Name:
Assessor:
Internal Verifier:
Assessment Title:
Assessing in:
Number of Words:
Outcomes Covered:
HND Business
Human Resource Management
Ms Naila Akbar
Ms Sadaf Ijaz
Analysis of HRM practices, procedures for obtaining suitable
employees, principles and procedures for monitoring employees,
employee exit from the organization.
Group of 3
1500 words (Total 25 Pages Maximum)
2, 3, 4
Issue Date:
Due Date:
Signature: ______________________
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