INTERNSHIP REPORT

ALLIED BANK LIMITED (ABL) GT ROAD BRANCH, PESHAWAR

Submitted by: ZEESHAN ALI MBA-022(HRM)

CECOS UNIVERSITY OF IT AND EMERGING SCIENCES, HAYATABAD PESHAWAR
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APPROVAL SHEET Internship report submitted to institute of Management and Information Sciences CECOS University Peshawar as a practical fulfillment of the requirement for the degree of (Master of Business Administration) Approved by Supervisor Committee. COMMITTEE MR. Imran Siddiqui Signature: _________________ Remarks : ______________

Examiner 1: Name: ____________________ Signature: ______________

Examiner 2: Name: ____________________ Signature: ______________

Examiner 3: Name: ____________________ Signature: ______________

Incharge : Deptt of Mgt.Sc Mr. Imran Siddiqui Signature: _________________

IMIS Director Mr. Syed Muhammad Taqi Signature: ______________ Page 2

CECOS UNIVERSITY OF IT AND EMERGING SCIENCES, HAYATABAD PESHAWAR

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PREFACE The purpose of internship is basically to judge the basic knowledge of the student regarding his field of specializing. It helps the examiner in knowing about the degrees to which the student has acquainted himself with the knowledge, which he has acquired in the classroom, in its application in the practical shape or in the real world. Instead of dull and complicated topics interesting and useful topics have been included to achieve the end it has been written for. These topics have and outstanding and inspirational value for all its readers. Firstly, I am thankful to Allah Almighty for enabling me to accomplish this report. I will always be grateful all the professors of the CECOS University who help me during the report. And special thank to Sir Mr. Imran Siddiqi who has been a constant source of inspiration and encouragement for me during this entire period. I am also indebted to my parents, siblings, colleagues and friends for their invaluable support-one way or the other. Lastly, I pray my Allah to give a boost to cement sector in the best interest of Pakistan. Happy regarding ZEESHAN ALI

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GT Road Branch Peshawar to provide me a congenial work environment and have better cooperation and coordination with me and the way in which they interact with me is highly commendable and worthy to be praised. I am also thankful to the people who assisted me in finally preparing this report and sharing of information necessary to complete this report. friendly and helpful in accumulation of immense knowledge and experience. I hope the knowledge and experience which I gained from this environment would certainly be helpful in my practical life after completion of my MBA degree.Acknowledgements I am very thankful to the management of the Allied Bank Limited for giving me permission to start internship in their esteemed organization. Zeeshan Ali . I am thankful to all of the officers and staff of the Allied Bank Limited. Page 5 . The environment in which I completed my internship was highly cooperative.

This report also has information about how to handle the diverse workforce in today businesses. As in the today’s businesses compensation is directly related to the performance and work done by the workers/employees. I go through all the important human resources areas of the organization i. how his compensation will be fixed and how to retain and motivate them by offering a handsome compensation package so that he can work with greater devotion and motivation. This report covers every aspect of the Human Resource Management functions in any contemporary business environment. It includes theoretical knowledge and practical experience about how to recruit and select a new candidate. how to orient and train them. How their demands are protected and fulfilled. How a manager respond to a diverse situation of strikes/lockout after failure of collective bargaining or dialogues between union and management. skills and knowledge. How a union members and workers belonging to a particular union can be negotiated. It will be very helpful in my practical life when I independently enter into a competitive business environment. Apart from my own experience and knowledge this report may also help other MBA students guiding towards right path in the related field of Business Administration. Recruitment & Selection and other related areas and I got a lot of diverse practical knowledge about how to communicate upward. Performance Appraisal. history and organizational structure departmentation the office and human resource analysis and recommendation about HR and general etc . Page 6 . This MBA degree along with the practical internship experience will certainly help me in exploring my ideas.e. how to have their effective career planning and how the compensation is linked to the performance. I did internship in the Allied Bank Limited and gather a lot of practical information and experience about how a large organization works. Training. This report also have information how a manager handle a group of people and workers in the form of a union. downward and at lateral level.EXECUTIVE SUMMARY The main aim of doing the six to eight week internship after passing 20 subjects of MBA program is to acquaint the students with some practical knowledge about the theories they have already studied at the university.

... 5.2 Transfer………………………………………………..6.…………….2 Forecasting HR requirements……………….15 HRM process in the organization…………………………. 6.1 Types of compensation and benefits…………………23 5..2 How performance reports are written in ABL .1 HRP process…………………………………...3 Performance Management…………………………………. Objectives of studying Allied Bank Limited……………………….1...Table Of Contents 1..20 5....22 5.….4.6 Job changes within the organization………………….1.7 1.1 History of ABL………………………………………….3 Resignation ……………………….22 5.……….4.4 Separations …………………………………….1 Employment selection process in ABL.5.6.1 Employee Job Changes………………………………26 5..3.6.…43 References & Sources used……………………………………….……..5 Organizational career management…………………..3 ABL GT RoadBranch…………………………………… …13 Performance Analysis…………………………………….….3 Methods to forecast HR needs………………......21 5.…44 2.1 Training Need Assessment………………….22 5.2. 7.……….24 5.7 Introduction to the organization………………………….……22 5.. 9.11 1.1 Performance standards and expectations……... 4..1.……28 5.…16 4.……..28 5.6.19 5.2..2 Training & Development……………………………………..……….1 HRP and Forecasting………………………………….6.……28 5. Page 7 .…… ...……. 8.2 General Information about ABL………………………..6.3 Demotion …………………………………………….10 Organizational Structure of the HRM department……….…………….26 5..…….19 Employee recruitment and selection……………………………….6...……8 1....1 Layoff……………………………....28 5. 3.40 Conclusions ………………………………………………………..3..2 Employee Development………………...16 4..4 Retirement ……………………………29 SWOT Analysis of the organization…………………………………31 Recommendations …………………………………………..1 Promotion……………………………………………..16 4.4.....…….6.…….4.20 5..….22 5...27 5.2 Termination………………………...4 Employee compensation and Benefits………………………23 5.27 5..…….18 4.1 Sources of candidates……………….1.…….4.29 5.

financial and personal skills and also to apply the theoretical concepts to practical environment. OBJECTIVES OF STUDY The practical work and experience leads to improvement of the inner capabilities of any MBA student which are likely to be implemented in the competitive business environment in near future.  To analyze the different sections of ABL. This 8 week practical work/ internship sharpens the inner capacities of an MBA student like me and is the first step to introduction of any business environment after passing out of the university. technical.INTRODUCTION TO THE REPORT I have studied 20 different business related courses in the MBA program launched by the Peshawar.  Through the efferent work taking and employment opportunity in ABL Page 8 .  To polish the hidden skills efficiently. This internship provided me a training environment to sharpen communicational. As a manager I have to do practical work and face diverse and unique challenges in future field after getting formal MBA degree so this internship provides a key step to start for my practical experience. This degree of MBA gets a competitive strength with the practical work and experience in any renowned organization especially in the commercial sector. The utility of these courses is fruitless unless I do practical work in any organization so as to coincide the theoretical ideas with the practical implementation of these theories and ideas.

Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. it was agreed that commercial interest of the time needed a bank with facilities of growth and transfer. Allied Bank was the first Muslim bank to have been established in Pakistan. Today. The Bank also has the largest network of over 780 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.2.431 million in its first eighteen months of business.12 million under the Chairmanship of Khawaja Bashir Bux. Page 9 . the Bank attracted deposits equivalent to Rs. while placing major emphasis on retail banking. because of capital reconstruction. was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005. 0. Banking in its modern form and structure starts in Britain when many of Lombardy merchants came to England and settled in the part city of London now called Lombard Street. They were so resourceful that even the king s had to depend on them. assets and deposit base. but that it should not be a bank run by a private individuals. In August 2004. It started out in Lahore by the name Australasia Bank before independence in 1942. It offers universal banking services. the Bank has built itself a foundation with a strong equity.HISTORY OF THE ALLIED BANK LIMITED Allied Bank Limited (ABL) was the first bank to be established in Pakistan. 0. In order to extreme line the banking organization and techniques. with its existence of over 60 years.

Most of the repot is result of primary data and least is based on the secondary data. . 0. Page 10 . the Bank’s total assets amounted to Rs. 10.572 million.e observation as well as informal interviews and discussions with the staff of bank and it least depend on secondary data sources that is print and electronic media like books annual report of the bank.At the time. Allied Bank's paid up Capital & Reserves amount to Rs.5 billion. 170 billion. WORK SCOPE The internship period was of six weeks and this period was not sufficient for collecting the data understanding and analyzing the large organization like ABL.i. RESEARCH METHODOLOGY The methodology for the collection of data is mostly based on primary data. doing internship in ABL was a great experience in terms of learning how to work in organization and how to meet different people in the organizational structure and also observed what had learnt from the text books during the study period. 143 billion and total assets equal Rs. deposits exceed Rs. Today.

Page 11 . all the activities of an organization are due to its objectives and goals and it is for the attainment of these objectives that various strategies. and reward dedicated team To play a proactive role in contributing towards the society all stakeholders members OBJECTIVES OF ABL: Objective is the mean toward which an activity is aimed. efficiency and diversity for To provide a challenging work environment. MISSION • • • • • To provide value-added services to our customers To provide high-tech innovative solutions to meet customer requirements To create sustainable value through growth.Chapter2: REVIEW OF ALLIED BANK VISION To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers. products and services are devised.

e. Current Account PLS Account The branch also provides services to general public and other businesses like. Locker’s Services Submission of fee etc of different colleges. Abl perform its functions in accordance with the banking company’s ordinance basic functions of ABL are as follow General account Suspense Account Commission Account For general public the branch deals in two accounts i. Deposits Advances Foreign Exchange Compliances Bills ATM Utility bills. Page 12 .FUNCTIONS OF ABL Like other commercial bank. Traffic Chillan. Abl is engaged in performing Varity of functions to achieves its objectives.

how over look all the operations of abl in particular region . recovery. REGIONAL GROUP HEADS every region has regional chief usually an executive vice president ( evp)/senior executive vice president (sevp). the regional manager are responsible for a either a number of regional areas and controller of various departments such as administration . there is general meetings of the share holders and are some elected directors. general inspections.HERIRACY OF ABL  BAORD OF DIRECTORS  REGIONAL GROUP HEADS  REGIONAL GENERAL MANAGER  REGIONAL CONTROLLER  BRANCH MANAGER  CUSTOMER SERVICE MANAGER  BANK OFFICER  CASHIER BOARD OF DIRECTORS: in the management of abl bank. and loans etc Page 13 . the board of directors is at the top of the controlling bodies. REGIONAL GENERAL MANAGERS: under the regional heads is the regional general manager how are either vice president. board members of abl are lead by the chairman .

advices and vouchers.REGIONAL CONTROLLER Below the general managers are the regional controllers who are AVP.assistant/cashier employees in each branch. CUSTOMER SERVICE MANAGRER There are several duties which branch CSM has to perform that includes opening of an account. general inspection etc CHIEF/BRANCH MANAGER In each region there are 20 to 30 branches which are managed by managers. They are directly reported to RGM and perform the duties of administration . who are either AVP are officer . BANK OFFICER The duty of bank officer is to post the checque. in the computer system and maintain manual register CASHIER The duty of cashier is to make and receive payments and maintain the different books accordingly Page 14 . loan approval .there are officers .

Besides monitoring performance of Human Resources Group. bonuses and any special allowances. related management committees.R. Page 15 . key appointments. The department also recommends amendments in Human Resources Policy to the Board. It nominates the management personnel on the boards of other companies / subsidiaries. salary revisions. the department also oversees certain H. It approves staff strength.Chapter3: ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT The Human Resource Management (HRM) department defines the organizational structure and functional responsibilities of each group.

HRP must be assigned or located within a central unit. scope of activity. HUMAN RESOURCE PLANNING Human Resource Planning (HRP) is the process which analyses/ anticipates the organization’s Human Resource needs under changing conditions and develop Human Resource Management activities/action plans to satisfy those needs. HRP must be based on the most accurate information available.Chapter4: HUMAN RESOURCE MANAGEMENT PROCESS IN AN ORGANIZATION HUMAN RESOURCE PLANNING & FORECASTING Human Resource Planning & Forecasting is a process of deciding what positions the firm will have to fill and how to fill them. Job Analysis. Job Description & Job Specifications are the terms which are widely used while the process of the Human Resource Planning. which are capable of effectively and efficiently performing assigned tasks. There are certain tools and techniques for the effective implementation of the Human Resource Management process in the organizations: • • • • • Human Resource Planning (HRP) must be integrated within the Senior management must emphasize the importance of HRP. Or HRP is the process by which managers ensure that they have the right number and kind of people in the right place and at the right time. The specific definitions of these terms are as under: Page 16 . A clear plan must be developed with associated time-spans and organization’s strategic plans.

Human Resource Planning can be condensed into two steps: • • Assessing current human resources. and Assessing future human resource needs and developing a program to meet those future needs. JOB SPECIFICATION It is a list of minimum skills. how it is done and why it is done.JOB ANALYSIS Job Analysis is the process of obtaining information about jobs. knowledge and abilities (qualification & experience) a person must have to fill a specific job. In other words a job description is the written statement of what a jobholder does. then defines its description. Every job has a unique job specification. including the tasks to be done on the job as well as the personal characteristics necessary to do the tasks. Every type of job has a variable job description. HUMAN RESOURCE PLANNING IN ALLIED BANK LIMITED In ABL the human resource planning is conducted by the ABL HR Department which analyzes every job. and forecast its specifications for future hiring and further process. Page 17 . JOB DESCRIPTION Job Description is a written summary of task requirements for a particular job. It is the assessment that defines jobs and the behaviors necessary to perform them. Or we may say that the job description is the statement of minimum qualification that a person must possess to perform a given job successfully.

identifying career development needs. The information about external supply of human resources may be of greater importance for decision making while planning for the human resources. The process of developing such a plan includes setting a planning horizon. assessing current performance and readiness for promotion. FORECASTING INTERNAL HUMAN RESOURCE SUPPLY The starting point for projecting a firm’s future supply of labor is its current/internal supply of labor within the organization. identifying replacement candidates for each key position. Page 18 .FORECASTING HUMAN RESOURCE REQUIREMENTS The purpose of Human Resource Forecasting is to estimate labor requirements at some future time period. The aggregate internal and external demand for labor. and integrating the career goals of individuals with company goals. The simplest type of internal supply forecast is the succession plan. Succession plans may be developed for management employees. Each type is considered separately because each rests on a different set of assumptions and depends on a different set of variable. nonmanagerial employees or both. FORECASTING EXTERNAL HUMAN RESOURCE SUPPLY Forecasting and hiring new employees are essential activities for virtually all firms. at least over the long run. Such forecasts are of two types: • • The external and internal supply of labor. This is basically to analyze the labor market and the supply of competent and skillful labor/employees in the external market.

The HR department through its database keeps all information regarding its employees i. It means to actually forecast the human resources i. local.e. consumer attitudes and patterns of buying behavior. The momentum attained by this forecasting thus far will be continued in the future through significant investments in human resources. and international economies. FORECASTING HUMAN RESOURCE NEEDS IN ABL In the ABL the human resource needs are forecasted in many a ways. retirement. where needed and how to get them available to the places where required. demand forecasting is beset with multiple uncertainties – changes in technology. qualification etc which often helps in when data about employees is required for future needs. and government regulations that might open new markets or close off older ones. METHODS TO FORECAST HUMAN RESOURCE NEEDS In this section we will discuss the methods (qualitative and quantitative) to assess/foresee/forecast the future human resource needs in the organizations.FORECASTING HUMAN RESOURCE DEMAND In contrast to the supply forecasting. number. size and types of contracts won or lost. induction.e. Page 19 . technology and training. national. The Bank devotes considerable resources in managing the risks to which it is exposed. Quantitative needs are the ways of getting information about the future human resource needs on quantity basis. Qualitative methods are behavior related methods to get information about the future human resource needs. how many people are needed.

It is basically a strategic analysis of the present availability and future requirements of the candidates in the organization. The selection criterion is purely based on meritocracy with equal opportunity for all.Coms from business schools of repute as Management Trainee Officers (MTOs).Chapter5: EMPLOYMENT SELECTION PROCESS IN ALLIED BANK LIMITED ABL has remained active in its efforts to attract the best of the industry talent by offering market based compensation and develop the skill set of existing personnel. • The interview is usually conducted by the Selection Penal comprising the top and middle level management who judges the suitability of the candidate for the job. Page 20 . while the hiring of another batch of around 250 MTOs* is in process. During the last two years around 800 MTOs* in two separate batches have been hired. • The process starts from inviting application from fresh MBA/M. • The candidates passing a written test prepared by Institute of Bankers are called for interviews. The committee has one Chairman assisted by 2-3 members and co-opted members from different functional areas of the organization. • Under a specified time period the organization screens the applications and rejects the unsuitable candidates. In the ABL the employment selection process: is as under • The first step towards employment selection process is to conduct Human Resource Planning. The candidates meeting the benchmark are short listed and issued call letters for test.

• There is a formal orientation program organized for the new comers just as to give brief introduction about the organization and the employees therein to the newly hired employees.• The person declared successful is then issued offer letter containing terms and conditions for his employment. This program leads to basic awareness of the environment of the organization. he is placed and posted to work in the functional area of the organization where his services are needed.4 million spent in the previous year. 58.000 employees participated as part of career planning and development policy. Training follow up is also done through tests and interviews of the employees imparted the training. • After orientation. newly hired employees are offered certain types of work related training so as to acquaint them about the processes and procedures adopted in the organization. during the year 2009. The candidate after accepting the terms and conditions laid down in the offer letter join the organization and submits his joining report. The HRD established The Management Development Centers (MDCs). • After successful completion of the training. The Bank has also nominated 1100 employees on various courses held within Pakistan and 76 of employees were sent abroad to attend the courses and seminars during 2009.8 million on training of employees as compared to Rs. various training courses have been arranged in these MDCs where around 5. TRAINING IN ALLIED BANK LIMITED A separate Human Resource Development (HRD) section is formulated at the ABL. has incurred Rs. The Bank. Page 21 . 57.

self development. planned) performance level (Ps) and the current or existing/real performance (Pc).TRAINING NEED ASSESSMENT In order to assess the training needs we have to identify and compare two level of performance: the standard (desired. optimum. open and distance learning and the formal education and training programs. consisting of youth and experience. PERFORMANCE STANDARDS AND EXPECTATIONS IN ALLIED BANK LIMITED ABL Human Resource policy is based on a clearly defined performance management system. Most of the employees learn from the experience which they get on the job while performing their functions and duties. The existing employees are the major source of sharing the experiences and help the new comers in the organization. The momentum attained thus far will be Page 22 . The Bank devotes considerable resources in meeting the performance standards which it set. The HR department assess the performance of employees through their PER’s and then formulate different training programs accordingly. Allied Bank Limited boasts of having one of the best in class Human Resource. career planning and development. attitude towards collective growth and sheer sense of belonging has made ABL one of the top five banks in Pakistan. EMPLOYEE DEVELOPMENT IN ALLIED BANK LIMITED The concept of employee development in the ABL circulates around on the job experience. This helps the Bank to own phenomenal growth and success through its competent labor force whose exemplary work ethics. The difference between these two levels is the performance gap (Pg). future. meritocracy and succession planning. All these methods and techniques are used in the organization for the development of the employees.

The compensation is divided in two main components. ABL is a private sector organization thus it is giving a handsome compensation to its employees on the basis of their rank and seniority. In ABL performance is appraised on annual basis by documenting Annual Appraising Report of each employee. a performance evaluation system is in place in ABL whereby ‘pay to performance criteria’ inculcates the motivation amongst the employees to achieve the goals/targets set for them. Page 23 . one is public sector organizations functioning under the administrative control of the Government of Pakistan and the other one are called private sector organization. having their own administrative control at the hands of the investor or the capitalists or entrepreneurs.continued in the future through significant investments in human resources. TYPES OF COMPENSATION & BENEFITS IN THE ALLIED BANK LIMITED There are two types of organizations i. Then these reports are sent to Regional Office which forwards it to Head Office. Sufficient errors exist in the system of measuring the performance of the candidates which ultimately affects the future service of the workers.e. Competency based recruitment coupled with market based compensation has enabled the bank to attract the best of industry talent. technology and training. HOW PERFORMANCE REPORTS ARE WRITTEN IN ALLIED BANK LIMITED To promote employee engagement and satisfaction. The Branch Manager measures the performance of each individual candidate and prepares a Performance Evaluation Report (PER). ABL pursues the strategy of having a mixture of youth and experience by investing in best of industry talent and inducting young talent.

Career is basically a sequence of positions held by a person during his or her lifetime. The non-financial benefits (Benefits & Perquisites) admissible to the employees working at the ABL vary in nature. Medical Allowance etc. Downsizing. Utility Allowance. ORGANIZATIONAL CAREER MANAGEMENT The term career has many meanings. The idea of increased personal responsibility for one’s career has been described as a boundary less career in which individuals rather than organizations define career progression. The challenge for individuals is that there are no norms and few rules to guide Page 24 . Employees must be prepared to do what is necessary to advance career and take responsibility for designing. and Employee of the Month Award etc. Widespread organizational changes have led to uncertainty about the concept of a traditional organizational career. organizational loyalty. Employees are often rewarded with Annual Bonus 2 times a year and an additional bonus for extra ordinary performance is also awarded to any staff member. Shields.• • Financial Compensation Non Financial Compensation The Financial Compensation or benefits include Base Pay. The proposal for bonus is recommended by the Branch Manager and approved by the Regional Office. it can mean advancement in someone sequence of jobs. and marketplace value. House Rent Allowance. important skills. restructuring and other organizational adjustments have brought a significant conclusion about career development. In popular use. guiding and developing their own career. These rewards can be Performance Certificates. Career Development is also a way for organizations to attract and retain highly talented people.

Instead. abilities and market opportunities. career management and success have been defined in terms of occupational advancement. which is clear and easy to measure. Here are some suggestions for a successful management career: • • • • • • • • • • Develop a network Continue upgrading your skills Consider lateral career moves Stay mobile/Support your boss Find a mentor/Don’t stay too long in your first job Stay visible/Gain control of organizational resources Learn the power structure Present the right image Do good work Select your first job judiciously The career is not something that should be left to chance. individuals assume primary responsibility for career planning. The role of mentor is to provide a candid feedback to new comers on how they are being Page 25 . career goal setting. instead. education and training. One of the first career decisions one has to make is career choice. Organizations should actively promote such relationships and provide sufficient time for mentors and new hires to meet on a regularly scheduled basis. • • knowledge with others. lead to highly satisfactory work. in the evolving world of work it should be shaped and managed more by the individual than by the organization. make one want to maintain his/her commitment to career. The optimum career choice is one that offers the best match between what one want out of life and interests. Traditionally. Good career choice outcomes should result in a series of positions that give an opportunity to be a good performer. and give the proper balance between work and personal life.them in these new circumstances.

These positions have a greater importance in the life span of the individual employees due to the reason that the employees get compensation depending upon the nature of job changes. avoid discouraging so-called impractical aspirations. teachers. retirement and resignations (out). The Mid-Career employees keep themselves fresh. Page 26 . The career is the sequence of positions occupied by a person during the course of a lifetime. Parents. transfers and relocations (over) and layoffs. These moves corresponds to promotion (up). down. These positions may be up. He has to deal with unique variations and challenges over his/her job at his career. • Another thing is mid career management of the employees in their middle ages while they are on job to develop younger employees. Dismissals are sometime also fall into the last category. • Challenging early careers/initial job assignments are an antidote to career obsolescence. over and out. there are four broader types of internal moves: up. Technically dismissals also fall into the last category. Employees should be encouraged to aim high because it lead to higher performance. From the organizational point of view. Some time these changes of jobs within the organization are very much constructive to the employees and some time these changes are very much discouraging for the employees. employers and friends should therefore. energetic and up to date while the younger employees learn to see the big pictures and to profit from the experience of the older employees. These are all the movements or job changes within the organizations related with the workers or employees working in the organizations. down. over and out. JOB CHANGES WITHIN THE ORGANIZATION Not every incumbent/employee enjoys a similar position in any organization. demotions (down).perceived by others and to serve as a confidential sounding board for dealing with work-related problems.

These methods are as under. demotions. Whatsoever the decision of the management is.  Promotion  Demotion  Transfer  Dismissal  Separation  Layoff  Termination  Resignation PROMOTION POLICY OF ALLIED BANK LIMITED The promotion policy at ABL is pre defined. These job changes are applicable in every small or large organization where people are doing work. A promotion committee is constituted which considers the employees fit for promotion. People get promotions. The promotion criteria are based on three important aspects. the employees have to accept it. • • • Seniority Fitness Performance TRANSFER In the ABL transfer decisions are usually internal in the different sections and units within the organization. Page 27 . People/employees are not allowed to resist the decisions of the management. transfers and got dismissed/terminated depending upon the situations in which they are performing their duties.All these methods of job changes apply in the ABL.

The decision of demotion is very much against the will of the employees and they oppose it badly. such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work. However. or mutually agreed upon by both. TERMINATION Termination of employment is the end of an employee's duration with an employer. Employees are not often demoted to the lower grades or positions. as when factory work cyclically falls off. Involuntary layoffs are never pleasant for the employees. the employer. the decision may be made by the employee. Voluntary or involuntary permanent withdrawal from an organization is called separation or turnover. In the ABL decision of demotion is taken by a formally constituted committee. Termination may be due to disciplinary action taken by the management against the employees not performing assigned tasks and functions. LAYOFF Layoff is the temporary suspension or permanent termination (involuntary) of employment of an employee or (more commonly) a group of employees for business reasons. in recent times the term can also refer to the permanent elimination of a position. Page 28 . A high separation or turnover rate may result in increased recruitment.DEMOTION POLICY AT ALLIED BANK LIMITED In the ABL demotion decisions taken by the management have many kinds and shapes. Originally the term "layoff" referred exclusively to a temporary interruption in work. SEPARATIONS Separations are the decisions taken by the management involving employees moving out of the organization. Depending on the case. who after analyzing each and every aspect take this important decision. selection and training costs. Termination is a traumatic experience.

" Employees such as white collar and professional workers resign often. When an employee chooses to leave a position it is considered a resignation. A resignation is a personal decision to exit a position. and Termination etc. instead." "quitting. along with extended benefits. leaving anger and resentment in their wake. whereas one who voluntarily resigns may not be eligible. they should leave gracefully and responsibly.RESIGNATION Voluntary termination/turnover is a decision made by the employee to leave the job. Early retirement programs take many forms. The accused is served with a charge sheet then the enquiry is conducted. but typically they involve partial pay stretched over several years. though outside pressure exists in many cases. Whether an employee resigned or was terminated is sometimes a topic of dispute. RETIREMENT Early retirements are a possible alternative to being laid off. Employees who resign should avoid burning their bridges behind them. which occurs when the employee involuntarily loses a job. Early retirement programs are intended to provide incentives to terminate. as opposed to termination. they are not intended to replace regular retirement benefits. because in many situations a terminated employee is eligible for severance pay and/or unemployment benefits. After that the enquiry committee submits its report to the authorities and recommended action is then taken. In case if services of a person are terminated then he/she will not get any financial benefits. SEPARATION POLICY AT ALLIED BANK LIMITED In ABL if an employee is found involved in the any of the wrong doings then a departmental enquiry is being launched against him/her. stressing the value of their experience in the company. Lay Off. Such a decision is commonly known as "resignation." "leaving “or” giving notice. Page 29 . These actions can be any one like Demotion.

At retirement an employee gets financial rewards in the form of Pension. Page 30 . RETIREMENT POLICY AT ALLIED BANK LIMITED The compulsory retirement age for each employee in ABL is 60 years.Research indicates that both personal and situational factors affect retirement decisions. Retirement is the point where a person stops employment completely on attaining the pre-defined age of superannuation. Many people choose to retire when they are eligible for private or public pension benefits. gratuity and insurance etc. although some are forced to retire when physical conditions don't allow the person to work any more (by illness or accident).

the opportunities which prevail in the market and the threats which an organization may face from its competitors and other from other potential factors. This analysis can be performed on a product. Human resources includes the technical and non-technical staff and workers in the organization. Financial resources means the finances occupied/carried by the organization in order to pay the staff and to run Page 31 . It tells the strengths. technology and other physical assets of the organization. on a service. opportunities and threats of Allied Bank Limited. A) STRENGTHS Strengths mean the positive things that organization performs well and the unique resources the organization has. weaknesses. Here we apply this very useful technique to identify the strengths. Physical resources means machines. Mainly the organization has four types of resources: • • • • Human Resources Informational Resources Physical Resources Financial Resources. Informational resources play a very vital role in decision making process for the management.Chapter6: SWOT ANALYSIS OF THE ALLIED BANK LIMITED SWOT analysis is a process to identify where organizations are strong and where vulnerable. weaknesses. where it should defend and where to attack. a company or even on an individual. Strengths relates to the internal environment of the organization.

professionals from across the industry have been recruited into areas of product development. establish a strong consumer banking business. With Cash Deposit facility for immediate credit to a remote branch. Online Banking Online Banking facilities are available to customers maintaining accounts at all online branches across the country. research. Page 32 . sales. the Bank has built itself a foundation with a strong equity. The Bank has the largest network of over 780 online branches in Pakistan and offers various technology-based products and services to its diverse clientele. assets and deposit base. online banking. Brand Image Brand image of ABL is recognized nationwide as provider of best quality banking services to its customers. credit policy. Reach/Availability With its existence of over 60 years. The strengths noticed by me during my stay at ABL as an internee is as under: Customer Satisfaction The motto of ABL is to “deliver value to the people we serve” and keeping in vies this motto the Bank aim is to provide a host of products and services to its customers. It helps the speedy services giving to the customers. while placing major emphasis on retail banking. To achieve this objective. It offers universal banking services. consumer analytics. debit & credit card facility. easy fund transfers etc the ABL has build its brand image that is a sign of quality.the daily process of the organization. call centers and service quality departments. There is also help in checking the balances and daily transactions just at one key press.

Employees use latest information technology in delivery of the services to the end users.523 million during the previous year. Additionally. Better career planning is offered by ABL. Statement of Ethics and Business Practices The Bank has adopted a “Statement of Ethics & Business Practices”. The Earning per share is 10. 5. Strong Financial Position It is evident from the financial statements of the bank. Utility Bills. Sales Tax. There is a formal orientation process for the new comers in the organization. It offers number of services relating to the banking system like Depositing Cash. Human Resource Practices The Bank has developed strong human resource practices. Wide Area of Services The bank provides a wide area of services. HR cost increased by 25.1% to Rs. Each employee has his/her own job description and he has to do according to the duties and functions specified in that job description.660 million during 2009 as against Rs. and Traffic Challan.02 m (ABL Annual Report 2009). which has been signed by all the directors and employees. Page 33 . Locker Availability. Skilled and trained workers are available in the organization. the financial position of the bank is very sound and its profitability is in increasing.The Bank also provides the facility of ATM to its customers. and various loan schemes. 4. which is a very positive sign. Fees received of AIOU. Withholding Tax. account holders of all online branches can obtain the Allied Cash+Shop Visa Debit Card for use at ATMs. Property Tax.

Employee’s Satisfaction By adopting its “Statement of Ethics & Business practices” the ABL has yielded good results. As a personal responsibility. vendor or visitor. Business/Work Ethics The statement of Ethics and Business Policy also states that employee in ABL respect fellow colleagues and work as a team. Professionalism The Statement of Ethics & Business Practices compels every employee to serve ABL honestly and faithfully.All employees of Allied Bank Limited are bound to conform to and abide by the ABL’s rules and obey all lawful orders and directives. Its employees are very much loyal to the bank. It also bounds the employees to not engage in Money Laundering and is extremely vigilant in protecting ABL from being misused by anyone to launder money by strictly complying with “Know Your Customer” policies and procedures. It also ensures that employees show good attendance and punctuality. every employee is to safeguard both the tangible and intangible assets of ABL and its customers. to conduct themselves with the highest standards of ethics. customer. Employee’s turnover ratio is also very low in ABL. employees. They shall at all times be courteous and not let any personal differences affect their work. The bank has adopted a strict stance through the “statement of Ethics and Business Practices” that its employee should not indulge in any kind of harassment including sexual harassment or intimidation whether committed by or against any senior/junior. They will treat every customer of ABL with respect and courtesy. and fellow bankers. The organization provides better hiring and Page 34 . coworker. Also they have to maintain the privacy and confidentiality of all the information acquired during the course of professional activities and refrain from disclosing the same unless otherwise required by statutory authorities/law. investors. professional integrity and dignity in all dealings with the public. clients.

e-mail and the internet. Workers are more motivated and committed towards duties assigned to them. The weaknesses of the ABL which I noted down during my stay there as internee is as under: Lack of Communication between Employees Page 35 . Accounts Group. 57. The Bank has also nominated 1. B) WEAKNESSES The weaknesses are the negative things in the internal environment of the organization. Administration group etc. faxes. formal groups are made in the Bank such as Finance Group. Information Group. MDCs are established by the bank where around 5. Employees of the ABL works in groups and teams. during the year 2009 has incurred Rs. The Bank. Decision making at different level is done by a defined manner. There is delegation of powers and decentralization of powers amongst the lower and middle level of management.000 employees participated in courses of career planning and development. Better Communication channels are adopted in the Bank like telephone. Organizational Environment ABL provides better working environment and better working conditions for the employees.8million on training of employees.medical facilities for the employees. There is greater Quality of Work Life in the organization. Employee Training & Development Sufficient resources (financial and physical) are allocated for the training of the employees. It means that organization is lacking certain resources which it has to have.100 employees on various courses held within Pakistan and 76 of employees were sent abroad to attend the courses and seminars during 2009. MIS group. Greater benefits and perquisites are provided to the top level of management.

More. after the training there is no meaningful way to evaluate the effectiveness of the training. Technology The bank performs most of its routine work manually. Sometimes employees not take good care of the customers and did not perform their duties well. Due to this the efficiency of the employees is reduced and they became less motivated. the employees were reluctant to share their knowledge with others. There is a need of using modern communication devices. HR Issues There are certain HR issues that were also causing some problems e.g. They lack understanding with each other and not share the work of each other. A lot of complications/issues occur in the process of performance management.During the internship in ABL I found the problem of lack of communication between the employees and management. Also the bank needs other communication devices to improve its working. Recruitment and Selection process take too much time. Public Dealing Due to lack of qualified public relation officers the public respect not found in the bank. Staff Shortage/ Over work Load on Employees It was observed in the branch that as compared to huge business the bank is dealing in. Computer based working must be adopted. The process of reprisal of grievances of the employees takes too much time adding insult to injury of the employees. Page 36 . the number of employees is less and there is an increased workload on the employees.

adopting better customer satisfaction measures etc. C) OPPORTUNITIES Opportunities are the positive things in the external environment. Legal Protection The legal protection given by the government and the State Bank provides for the bank to explore new area of market by launching new services to the market. Opportunities for the ABL are as under: Banking Sector's Growth Rate Nowadays banking system is growing quickly so ABL have opportunities to improve its standard more and get more share in the market. services provided. Expansion of Economy The economy of Pakistan is expending at a rapid pace. ABL has great opportunity in satisfying its customer wants with its wide area of services.Innovation Another important weakness noted in the internship tenure is lack of innovation. Mostly external environment is uncontrollable. This innovation can be of the outlook. Banks plays a huge role in trade and commerce by providing different services to the business. The banking sector is contributing a lot in GDP of the country and ABL can utilize this opportunity to upgrade its market. The bank requires constant innovation to attract more customers. Page 37 . The economic activities are increasing exclusively and banks are contributing more in expansion of economic activities.

The threats which I noted in the ABL are as under: Page 38 . the investors are launching various types of Mega Projects especially in housing and textile industry. D) THREATS Threats are the negative things in the external environment of the organization. Huge Demand for Consumer Financing The increase in per capita income and overall economy has resulted into a great demand for the consumer financing especially for home finance and car financing and it is said that this trend will increase more in future. The bank has a great opportunity to finance these projects on very profitable terms. The bank can earn a lot by focusing on its consumer financing sections. The organization is providing a creative and learning environment to the employees. There is a lower turnover and layoff level because of the laws protecting the rights of the employees.Human Resource There are greater opportunities for the organization to hire competent workers through a widespread availability of the candidates in the market. Threats are always incontrollable as they exist outside the environment of the organization. Information Technology Better and updated information and physical technology is available which can change the working environment of the bank as well as well create the brand image o Mega Projects Financing As the increase in overall business activity in the country.

Increase in Numbers of Banks Increase in number of banks is a threat for ABL. Some international banks are also planning to launch their branches in different areas of Pakistan which makes a threat for the ABL Modern Banking Tools Modern and computerized banking is required to fulfill the customer’s need.Expanding Corporate Culture The expanding corporate culture is an ongoing threat for the smooth existence of the ABL as the competitors attracting more and more committed and skilled workers. There if one commuter of one branch suffers a problem. The other related organizations are paying more benefits. Most of the employees are not effectively and efficiently using the modern information technology tools like e-mail. perquisites and incentives just to retain their employees. Technology ABL have wide network of branches and almost all of its branches are online. internet. A wide number of banks (commercial and private) are operating their business and provide the same facilities. all systems and commuters will suffer. telephones. faxes. printers etc for organizational benefit provided to them. Page 39 .

whole structure of training process build on the basis of the assessment of needs at different levels of the organization. objectives and strategies in a very effective and efficient manner. must be redressed on timely basis. Need assessment for training purpose must be result oriented as the process must be ignored and rejected. • • • Unfair influences and interferences in the recruitment and selection Performance appraisal process must be ongoing and result oriented. its negative use must be ceased. maximum results from the performance appraisal methods. creative purposes. and streamlined. mission. attract and retain the competent and able candidates. Page 40 . • Strategic Planning of the organization must be given adequate time and expertise so as to create vision.Chapter7: RECOMMENDATIONS The following are the recommendations made for the ABL to overcome its restraints. benefits. • • • • • • • • • There must be proper ethical training for the raters. organizations where still conventional system prevails. perquisites must be enhanced in accordance The whole process of performance appraisal needs to be rationalized Grievances of the employees must be given proper attention and it Information technologies provided to the organization must be used for Interviewing skills of the raters must be improved for getting 360 degree performance appraisal system must be introduced in the Recreational and creative activities in the organization must be Recruitment process must be streamlined and got transparent so as to with the inflation ratio. improved and enhanced. Staff salaries.

Redundancy of working procedures must be handled proactively. • • • • • Rules and procedures must be got simplified and there must be There must be equal and justified distribution of the rewards and Equal employment opportunities must be offered to all irrespective of Discrimination on gender basis must be discouraged. Result oriented training must be imparted to the employees. There must be training for managers on handling of diverse nature of Effective and efficient service delivery must be adopted. Page 41 . equality in them at every level of the organization. at different levels of the organization. There is a greater need for cooperation and coordination among people Security situation of the employees must be given adequate attention. the differences on the basis of gender and cultures. compensation in the organization.• • • • • workforce.

Also the report shows that how human resource management functions are being implemented in the organization.CONCLUSIONS The essence behind formulation of this report and completion of eight week practical internship in a competitive business organization is to get basic practical experience in the organizations which ultimately help the MBA degree holders to easily digest in the business organizations after completion of their MBA degrees. goals and targets. how his compensation will be fixed and how to retain and motivate them by offering a handsome compensation package so that he can work with greater devotion and motivation. As in the today’s businesses compensation is directly related to the performance and work done by the workers/employees. It includes theoretical knowledge and practical experience about how to recruit and select a new candidate. Overall working environment is affluent. how to orient and train them. programs and projects initiated by the organization. objectives. This report also have information how a manager handle a group of people and workers in the form of a union. How a union members and workers belonging to a particular union can be negotiated. Its vision. its staff strength. This report also has greater information about the organization. Allied Bank Limited is an accomplished Organization and one can plan to join it for his/her long-term career. organizational structure of the Human Resource Management department etc. This report also has information about how to handle the diverse workforce in today businesses. how to have their effective career planning and how the compensation is linked to the performance. Behavior of the Senior Executives of the bank is very cultured and they Page 42 . organizational structure. mission. This report covers every aspect of the Human Resource Management functions in any contemporary business environment. How a manager respond to a diverse situation of strikes/lockout after failure of collective bargaining or dialogues between union and management. Management of the bank cares a lot for its employees and considers them as an asset for the bank. How their demands are protected and fulfilled.

commitment to the organization. I had made an honest effort to present the working & operation of Allied Bank Limited. This short term practical experience during internship will certainly be a first step of courage and motivation to work in the competitive business environment. They helped me to understand the activities of bank to the maximum possible extent. cooperative & intelligent staff. Getting ideas for improvement from customer side is a new idea and that is working very well in Allied Bank Limited. Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind.care about the individual’s career and its growth. GT RoadBranch Peshawar in a simplest way. Despite their ever going activities they never get irritant by my questioning. the management is very keen about the performance and requires good moral and professional attitude of its employees. GT RoadBranch are efficient. and often work more than their working hours willingly to cover the assigned duties. The exercise of formulation of this report will certainly be helpful in delivering practical knowledge about basic human resource management functions to me and I will be able to meet the challenges and issues which are going to be faced by me in the practical life. All the customers are entertained individually in the branch and same kind of behavior and attention is given to all the customers. Employees at Allied Bank Limited. But to keep the standards high. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors. It also shows their loyalty. I feel pleasure that I have really gained a lot during may 6 weeks of internship and enjoyed working with experienced. Page 43 . As far as learning is concerned. all the employees at the ABL GT RoadBranch were cooperative.

ORGANIZATIONAL BEHAVIOR.alliedbank.com • • • MANAGEMENT. MANAGING HUMAN RESOURCES. Twelfth Edition by Stephen P.REFERENCES AND SOURCES USED • • Annual Report 2011 Bank Limited. ANNEXES/ APPENDICES Nil Page 44 . www. Robbins & Timothy A. Judge. Eighth Edition by Stephen Robbins & Mary Coulter. Fifth Edition by Wayne F. Cascio.

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