CHANGE

MANAGEMENT

This document contains the history, organizational charts, problems and
solutions of the ALLIED BANK LTD.
Final Term Project
on Allied Bank ltd.
Submitted To
Sir Ali Zamaan
Submitted By
Nayab Muzamil
Mba-5(HRM)
13232
Project of Change Management
1 Department of Management Sciences, Superior University, Lahore
Project of Change Management
2 Department of Management Sciences, Superior University, Lahore
Acknowledgement

Thanks and again thanks to Allah Almighty,
who pulled us through the times when every stone was turned against us.
He and only He dawned new horizons for us when the darkest fog made us blind,
who is really the Best Manager of the entire universe.
Without His consent, nothing is possible.
Thank You Allah Almighty.
Thanks from the recesses of our hearts to our to
the Most Respected Teacher, Professor Ali Zamaan
for his Untiring efforts, His Valuable Guidance and Precious Advices
are rare Assets for Us.
Project of Change Management
3 Department of Management Sciences, Superior University, Lahore
Dedicated To

Our Honorable Teachers & Loving Parents
Whose,
Love, Affection, Motivation, Patience, Support
&
Spiritual Inspirations
Give us Encouragement,
To all those People who have quenched for Knowledge,
To all those who have dedicated their lives to others,
To all of those who have served and sacrificed for
Sake of Freedom
To all of those people, who may be gone now,
But they will never be
Forgotten....

Project of Change Management
4 Department of Management Sciences, Superior University, Lahore
Contents
Selected Organization .......................................................................................................... 8
History ................................................................................................................................. 9
Vision ................................................................................................................................. 10
Mission .............................................................................................................................. 10
Core Values ....................................................................................................................... 10
Organizational Chart.......................................................................................................... 11
Branch Organization Structure .......................................................................................... 12
Problems Identified............................................................................................................ 13
Late promotions ............................................................................................................. 13
Manual Work ................................................................................................................. 13
Recruitment ................................................................................................................... 13
Selection ........................................................................................................................ 13
Transfer .......................................................................................................................... 13
Job Analysis and Wages ................................................................................................ 14
Retirement ..................................................................................................................... 14
Centralized Decision Making ........................................................................................ 14
Decisions are not properly supported ............................................................................ 15
Change in Policies ......................................................................................................... 15
Political Pressure ........................................................................................................... 15
Recovery of loans .......................................................................................................... 15
Fake costs ...................................................................................................................... 15
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Written policies are not properly followed .................................................................... 15
Expenses ........................................................................................................................ 16
Improper Appointment .................................................................................................. 16
Performance Appraisal .................................................................................................. 16
Insufficient Staff ............................................................................................................ 16
Disciplinary Action........................................................................................................ 17
Lack of Proper Information ........................................................................................... 17
Rent or Residence Facility ............................................................................................. 17
Transportation ................................................................................................................ 17
Children Education Facility ........................................................................................... 17
Similar Policies .............................................................................................................. 17
No regular appraisal system .......................................................................................... 18
Hiring of outsource staff ................................................................................................ 18
Branches Are not Renovated ......................................................................................... 18
No Use Of Electronic Media For Promotion ................................................................. 18
Manual Attendance ........................................................................................................ 19
Visiting Cards Not Issued .............................................................................................. 19
Payments Stoppages ...................................................................................................... 19
Solutions Suggested ........................................................................................................... 20
On Time Promotions ..................................................................................................... 20
Automation .................................................................................................................... 20
Recruitment And Selection ............................................................................................ 20
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Transfers ........................................................................................................................ 20
Job Analysis and Wages ................................................................................................ 21
Special Training ............................................................................................................. 21
Fair Promotions ............................................................................................................. 21
Fixed Retirement Policy ................................................................................................ 21
Decentralization ............................................................................................................. 22
Decisions Should be Supported ..................................................................................... 22
Political Pressure ........................................................................................................... 22
Policies Should be Followed ......................................................................................... 22
Expenses ........................................................................................................................ 23
Proper Appraisals .......................................................................................................... 23
Adequate Staff ............................................................................................................... 23
Complete Information.................................................................................................... 23
Residence and Transportation Facility .......................................................................... 23
Children/Education Facility ........................................................................................... 23
Area Wise Policies ......................................................................................................... 24
Renovation ..................................................................................................................... 24
Promotional Activities ................................................................................................... 24
Issuance of Visiting Cards ............................................................................................. 24
Online Attendance ......................................................................................................... 24
On time payments .......................................................................................................... 25
Conclusion ......................................................................................................................... 25
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References ......................................................................................................................... 26
Appendices ........................................................................................................................ 27


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SELECTED ORGANIZATION
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9 Department of Management Sciences, Superior University, Lahore
HISTORY
Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by
the name Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan
Limited in 1974 and then Allied Bank Limited in 2005.

In August 2004, because of capital reconstruction, the Banks ownership was transferred to a
consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong
equity, assets and deposit base. It offers universal banking services, while placing major
emphasis on retail banking. The Bank also has the largest network of over 950 online branches in
Pakistan and offers various technology-based products and services to its diverse clientele.

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VISION
To become a dynamic and efficient bank providing integrated solutions in order to be the first
choice bank for the customers

MISSION
To provide value added services to our customers
To provide high tech and innovative solutions to meet customers requirement
To create sustainable value through growth, efficiency and diversity for all stakeholders
To provide a challenging work environment and reward dedicated team members according to
their abilities and performance
To play a proactive role in contributing towards the society
CORE VALUES
Integrity
Excellence in service
High performance
Innovation and growth
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ORGANIZATIONAL CHART











CHAIRMAN
CEO
Senior Executive Vice
President(SEVP)
Senior Vice
President(SVP)
Executive Vice
President(EVP)
AssistantVice
President(AVP)
OG-11 OG-111 OG-1
Supporting staff
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BRANCH ORGANIZATION STRUCTURE













Manager
MG-10(Day
end/Calling)
MTO (Acct
opening Officer)
Customer Service
Manager (CSM)
MG-10(Day
End/calling)
MTO (CD
Incharge)
MTO (Clearing
Officer)
MTO (ATM &
Cash Book
Teller Cashier
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PROBLEMS IDENTIFIED
Late promotions
Against the schedules specified by the bank, employees are promoted after a long period of
time.
Manual Work
ABL is still relying on a lot of manual work. As compared to other banks now a days ABL is
still using a lot of manual work instead of softwares. Most of its recording are kept in form
of hard copies and maintained by its employees in manuals. It really takes a lot of time and
efforts for maintaining the data manually.
Recruitment
In most of the ABL branches, recruitment is not merit based but on recommendation. There
is an element of favoritism in recruitment.
Selection
Unsuitable candidates are selected who prove to be a great source of problem for ABL in the
future. It always cost negative effect on the goodwill of ABL.
Transfer
The transfers are unwanted by the employees. But some of the close employees are
transferred to wherever they want while others are not or remain in the same branch.

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J ob Analysis and Wages
In some of the branches, there is very low concept of job analysis that is why wages are not
according to the work performed by the workers e.g. two workers of the same unit and with
the same salary are performing different kind of jobs, one with less responsibility and the
other performing a complex one. This creates dissatisfaction among the workers.
Lack of Special Training
ABL does not provide the facility of specialized training to its staff. Training is provided on
the basis of centralization.
Undue Promotions
As far as promotion is concerned it is not done according to the rules and regulations.
Employee having good term and conditions are more likely to be promoted than the rest.
Many of the employees do not get timely promotions. As a result the employees have
disliking for some of their senior.
Retirement
Fixed retirement policy is not adequate. This policy reduces the morale of employee and their
interest in work. Fixed retirement age kills the spirit of work in employees.
Centralized Decision Making
In ABL we find centralized decision making process. The president takes all the decision and
senior executive committee lower level staffs cannot participate in decision making process.
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Decisions are not properly supported
The decision of a manager are not properly supported and backed by the higher level
management.
Change in Policies
Fiscal and economic changes, which take place in a country also, affect the recovery of loan.
Political Pressure
The important thing is political pressure on bank. Who ever come in power tried to pressurize
bank to write off their loans.
Recovery of loans
One of the problems faced by ABL in the recovery of loans is that sponsors do not show their
actual papers which are required by the bank.
Fake costs
At the same time sponsors do not show the actual cost of machinery so then they show
themselves bankrupt.
Written policies are not properly followed
All written policies and procedures for appointing employees and in other manners are not
properly followed.

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Expenses
ABL has too much administrative expenses. Employees of higher level have much more
facilities and allowances than lower level.
Improper Appointment
Although we find written policies and procedures for appointing employees to the bank but
these policies are not properly followed at ABL. The upper management sometimes recruit
and appoint people purely on recommendation not on merit when proper appointments are
not made people are discouraged and it adds to many social and economic problems.
Performance Appraisal
The system of performance appraisal as we learn in our course is somehow different because
ABL workers are appraised by the management and not by the immediate supervisor. The
element of subjectivity is very high as further promotion is very much dependent on this
appraisal report, so a manager can run or build the career of any worker by giving his/her
own subjectivity judgment.
Insufficient Staff
There is lack of staff in most of the branches as a result of which one person has to conduct
working in different seats, causes stress and turnover.

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Disciplinary Action
Allied Bank Limited has its own disciplinary actions. It is clearly written off and understood
but are not followed strictly by bank staff.
Lack of Proper Information
For public dealing, clients come to get some information but often referred to zonal office.
This creates a lot of tension and dissatisfaction in the mind of customer.
Rent or Residence Facility
No rent or residential facility provided by ABL to their valuable employees.
Transportation
There is no transportation facility provided to male employees but for females transportation
is provided on local basis.
Children Education Facility
In Allied bank there is no facility of education of children for employees at the lower level
but some of the favorites are availing that facility which creates a sense of discrimination
among the employees.
Similar Policies
The most important drawback of ABL is that the decision making is centralized and policies
are made equally for all the branches while there is difference in applying these policies.


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No regular appraisal system
There should be proper and regular appraisal system in order to enhance employees
efficiency and capabilities and productivity. In ABL there is two time appraisal in one year
so there is need to make regular appraisal system.

Hiring of outsource staff
Hiring of most outsource staff can create problem for such employees because they feel
insecurity, due to deprivation of incentives their level of motivation goes down which finally
leads to high turnover and job rotation

Branches Are not Renovated
Most of the branches are not owned by the bank itself, they are on rent and some of the
branches are not renovated on regular basis due to which the work environment is
affected.
No Use Of Electronic Media For Promotion
The promotional activities are limited only to paper media and electronic media is not
fully utilized to promote the services offered by the bank due to which only few people
came to know about the new offers.


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Manual Attendance
Except head office there is manual attendance system in every branch while other
organizations moved to the online and biometric systems.
Visiting Cards Not Issued
ABL dont issue visiting cards to the employees other than the branch managers.
Payments Stoppages
Most of the branches at the end of the month stop payments to the customers
merely to show high figure of closing which makes the customers uncomfortable.
Most of the accounts are shifted due to this policy.
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SOLUTIONS SUGGESTED
On Time Promotions
Late promotions results in employee turnover and job stress and losing a worthy
employee is not beneficial to the organization. So on time promotions should be made in
order to retain employees within the organization and to run the organization smoothly
and efficiently.
Automation
As told above that the ABL is still working manually in most of the branches which
increases the burden of employees in keeping records and affects the efficiency and
increases chance of mistakes. To avoid all these ABL should move to the automation
which will increase the efficiency and reduces the chance of mistakes.
Recruitment And Selection
The recruitment and selection should be made on the merit basis and not on the reference
which will enable ABL to get new talent and may increase the efficiency of organization.
Transfers
There should be adequate system of transfers which will increase the efficiency of
organization and employees. There should be a policy of that an employee cannot remain
in the same branch more than a year and after one year he will be transferred to any other
branch. Going on the new place and meeting new people can enhance the ability of the
employee.

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J ob Analysis and Wages
In job analysis we describe the job and specify the person for equitable wage system.
Mostly people are hired who gives branch the deposit, the more the deposit id the more
an employee is important. This system should be ended and jobs should be given
according to the job needs not on the basis of deposits.
Special Training
ABL should provide some special training to its employees other than the executives or
higher level staff so that the low level employees could be upgraded and brought to
higher level. This can save a lot of cost by promoting an employee rather than hiring a
new high paid person.
Fair Promotions
The ABL have policies for promotion which are not being followed by the employees.
The promotions should be made according to the rules and regulations. The undue
promotions should not be made because they have a very demotivating effect on other
employees.
Fixed Retirement Policy
According to the fixed retirement policy the employees cannot work in the organization
after going to age of 60 which can decrease the morale of many employees who can still
work. There should be a policy that if the employee is fit enough to work after the age of
60 then he should be doing that, can increase work performance and will prove to be a
motivational factor.

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Decentralization
The decision making is centralized in ABL which have a negative effect on employees.
Low level employees should also be added in the decision making or they should have
permission to share their ideas with the upper level employees who will increase the
sense of responsibility in low level employees, causes more work performance.
Decisions Should be Supported
The higher management dont support and back the decision of their branch managers
which result in high decrease in work performance of the individual and in return the
branch manager when gets his chance dont implement most of the policies. As branch
manager knows the area, people and employees, he can make better policies to sustain in
the market but the upper management thinks them as nothing.
Political Pressure
In most of the places there is an influence of the politicians on branches and due to that
they get their illegal work done which creates a problem for branch in future. They get
their illegal loans passed by giving fake documents and the loan couldnt be recovered.
The head office should make a strict criterion for sanctioning loans which will reduce the
political pressure.
Policies Should be Followed
Each and every written policy developed by the organization should be followed
accordingly to meet the organizational goals. For this the head office should keep an eye
on the procedures of branch or any authorized person could make a surprise visit to the
branch to check all the procedures.
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23 Department of Management Sciences, Superior University, Lahore
Expenses
ABL should reduce its administrative expenses. The upper level management enjoys
insufficient benefits along with a high salary. The amount of incentives and benefits
should be decreased and should enjoy the benefits which are needed not excessive.
Proper Appraisals
There are semiannually appraisals conducted in ABL but the problem is that the
management appraises the employee rather than supervisor. A person who dont know
the employee and his working style, how he can appraise him. The appraisals should be
made by the supervisors who will appraise employee according to his work.
Adequate Staff
In most of the branches the staff is not sufficient as required and a single employee is
working at two designations which increase his workload and stress due to which the
person cannot work efficiently. The employee should work at the designation he assigned
and the head office should hire adequate and complete staff for the branch.
Complete Information
The branch should have complete authority to access all the information needed by
customer in order to retain customers satisfaction.
Residence and Transportation Facility
ABL should provide residence and transportation facility to its employees which could be
great motivational factors for employees and it also enhances work performance.
Children/Education Facility
Education is the necessity of time. ABL being a large organization should provide
children education facility to its employees. For this they could make agreement with any
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24 Department of Management Sciences, Superior University, Lahore
of the local schools. It should also provide a chance of higher education to their employee
which is in great benefit to ABL.
Area Wise Policies
ABLs mainly drawback is that the head office makes similar policies for all of its
branches where there is problem in implementation. ABL should make policies according
to the needs and culture of the area which is in great benefit to it.
Renovation
Some of the branches are not renovated and furnished in the manner it could be. ABL
should pass a special yearly budget to renovate its branches all over Pakistan.
Promotional Activities
ABL mostly use paper media for its promotion. Electronic and social media should be
fully utilized to get attention of the people.
Issuance of Visiting Cards
Other than the branch managers visiting cards should be issued to the employees who
will create a sense of recognition and status in the minds of employees. This little work
can enhance the performance of employees.
Online Attendance
There should be online attendance systems in every branch which will reduce the
employees work of keeping records.
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On time payments
The branches should not stop payments just only to show a high figure of closings. The
stoppages of payments make customers very aggressive and most of the account holders
shift their accounts.


CONCLUSION
ABL is a strong organization but problems are there in this which affects the work
performance and the profit margins of it. Strong, effective and efficient policies could
tackle the problems in a positive way. ABL mainly concentrate on acquiring accounts and
deposits but customers are their second preference. They should prefer their customers to
get maximum return.

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26 Department of Management Sciences, Superior University, Lahore
REFERENCES
1. Bilal Latif (BSO, Link Road Branch,Lahore)
0333-4882967
2. Khurshid (Guard, Link Road Branch, Lahore)
No Contact Number
3. Ali Irfan (Account Holder)
0312-7676677
4. Awais Tariq (Relationship Manger, Town Hall Branch, Rahim Yar
Khan) 0345-8040603
5. Ali Raza (Account Holder, Shahi Road Branch, Rahim Yar Khan)
0304-4196665
6. Shehzad Khatak (BDO, Peshawar Branch)
0321-6616007

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APPENDICES
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