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ALLIED BANK LTD.

App K Dil mEIN hAMARA aCCOUNT

Submitted By:
Isma Nizam
M12BBA013
Zartasha Shaukat
M12BBA057
Kehkashan Sakhawat
M12BBA067
Submitted To:
Prof. Riaz
Ahmed Mian
Session:
BBA B&F
2012-2016
Hailey College of Banking &
Finance
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Table of Content
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CONTENTS
Acknowledgement
Executive Summary
INTRODUCTION OF THE ORGANIZATION
Introduction Of ABL
Mission & Vision
History
Today ABL
Organizational Chart
Products & Services
Departments at ABL
HUMAN RESOURCE MANAGEMENT IN ABL
Categories of Employee
Mission Statement of HRM Department
Role of HRM Department
Human Resource Policy
Problem In Hierarchy
HR PLANNING
HR Planning in ABL
JOB ANALYSIS
Job Specification & Description in Out Sourcing
Job Specification & Description in regular Staffing
RECRUITMENT & SELECTION
Recruitment Process in ABL
Selection Process in ABL
TRAINING AND DEVELOPING EMPLOYEES
Training in ABL
Carrier at ABL
COMPENSATION MANAGEMENT
PERFORMANCE APPRAISAL
SALARY ADMINISTRATION
EMPLOYEE SERVICES, SAFETY, HEALTH &
WELFARE
SEPARATION FROM EMPLOYMENT
INDUSTRIAL RELATION
NEGITIATION WITH UNION
SYSTEM OF COMMUNICATION
TERMS & CONDITION OF EMPLOYMENT
RECOMMENDATIONS AND SUGGESTIONS
CONCLUSION
REFFERENCES

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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 Riaz Ahmed Mian
for his Untiring efforts, His Valuable Guidance and Precious
Advices
are rare Assets for Us.

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....

EXECUTIVE SUMMARY
Allied Bank was the first Muslim bank to have been established in Pakistan.

Established in December 1942 as the Australasia Bank in Lahore with a paid-up


share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Bux,
the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen
months of business.

At the time, the Banks total assets amounted to Rs. 0.572 million. Today, Allied
Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs.
143 billion and total assets equal Rs. 170 billion.

COMPANY PROFILE

Type

Public

Founded

as "Australasia Bank", 1942 Lahore, Pakistan

Headquarters

Lahore, Pakistan

Industry

Finance and Insurance

Products

Financial Services

Revenue

PKR 18.699 Billion(2014)

Website

www.abl.com.pk

INTRODUCTION
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 700
online branches in Pakistan and offers various technology-based products and services to
its diverse clientele.

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, efficiency and


diversity for all stakeholders

To provide a challenging work environment, and reward


dedicated team members

To play a proactive role in contributing towards the society

VISION
To become a dynamic and efficient bank providing integrated solutions and the
first choice of bank for all customers.

VALUES

Integrity

Excellence in Service

High Performance

Innovation and Growth

History
The Banks journey has been about dedication, commitment, professionalism and
adapting to environmental changes, leading to its immense growth and stability.
It is these factors that have made it a Bank the rest look up to.

The Pre Independence History (1942 to 1947)


In the early 1940s, the Muslim community was beginning to realize the need for
its active participation in the fields of trade and industry. Since the late 1880s,
Hindus had established a commanding presence in the areas of industry, trade
and commerce and were especially dominating in the Sub-continent area.
Banking, in particular, was the exclusive forte of Hindus and it was popularly
and wrongly believed that Muslims were temperamentally unsuited for this
profession.

Mr. S.R. Jariwalla (sitting in the center) A legendary figure


in the history of the Bank.
It was particularly upsetting for Khawaja Bashir Bux to hear that Muslims could
not be successful bankers. He decided to step-up to that challenge and take the
lead in establishing this first Muslim bank by the name Australasia Bank Limited
in Punjab, which was to become Pakistan in December 1942.
The initial equity of the Bank amounted to Rs 0.12 million, which was raised to
Rs. 0.5 million by the end of the first year of operation, and by the end of 30th
June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728
million.

The Pre Independence History (1947 to 1974)


Australasia Bank was the only fully operational Muslim bank in Pakistan on
August 14th, 1947.

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A view of the building in Lahore that once housed the


Australasia Bank branch.

However, it was severely hit by the riots in East Punjab. The Bank was identified
with the Pakistan Movement. At the time of independence all the branches in
India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra (Agra)) were
closed down. New branches were opened in Karachi, Rawalpindi, Peshawar,
Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to
Multan and Quetta as well. The Bank financed trade in cloth and food grains
thus, played an important role in maintaining consumer supplies during the
early months of 1948 affected by riots. Despite the difficult conditions prevailing
and the substantial set back in the Banks business in India, Australasia Bank
made a profit of Rs. 50,000 during 1947-48.
By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the
separation of East Pakistan. But the Bank did well despite losing a lot of its assets
and by the end of 1973 had 186 branches in West Pakistan.
In August 2004 as a result of capital reconstruction, the Banks ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim
Group.
Today the Bank stands on a solid foundation of over 63 years of its existence
having a strong equity, assets and deposits base offering universal banking
services with higher focus on retail banking. The bank has the largest network of
on-line branches in Pakistan and offers various technology based products and
services to its diversified clientele through its network of more than 700 branches.

Allied Bank (1974 to 1991)


In 1974, the Board of Directors of Australasia Bank was dissolved and was
renamed Allied Bank. The first year was highly successful; profit exceeded Rs. 10
million, deposits rose by over 50 percent and approached Rs. 1460 million.
Investments rose by 72 percent and advances exceeded Rs. 1080 million for the
first time in the banking history. 116 new branches were opened during 1974 and
the Bank started participating in the Governments spot procurement agriculture
program. Those seventeen years saw a rapid growth for the Bank. Branches
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increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion, and
Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period.
It also opened three branches in the U.K.

A view of Allied Bank's FTC branch, Karachi.

Allied Bank (1991 to 2004)


As a result of privatization in September 1991, Allied Bank entered a new phase,
and became the worlds first bank to be owned and managed by its employees. In
1993 the First Allied Bank Modaraba (FABM) was floated. After privatization,
Allied Bank became one of the premier financial institutions of Pakistan.

A view of Allied Bank, Head Office, Lahore

Allied Banks capital and reserves were Rs. 1.525 billion; its assets amounted to
Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an
enviable position in Pakistans financial sector and was recognized as one of the
best amongst the major banks of the country.
In August 2004, as a result of capital reconstruction, the Banks ownership was
transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim
Group.
Today, the Bank stands on a solid foundation built over 63 years of hard work and
dedication, giving it a strong equity, an asset and deposit base and the ability to
offer customers universal banking services with more focus on retail banking.
The Bank has the largest network of online branches in Pakistan and offers
various technology-based products and services to its diverse clientele through
its network of more than 700 branches.

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2005 To date- The ABL


In May 2005, Ibrahim Leasing Limited dissolved and the company was vested
into Allied Bank Limited. ALL the shareholders were issued ABL shares instead
of the all shares held by them. An application for the listing of ABL shares in all
the Stock Exchange Companies of Pakistan was made; ABL was formally listed
and the Banks share trading began on the following dates:
Islamabad Stock Exchange
8th August 2005

Lahore Stock Exchange


10th August 2005

Karachi Stock Exchange


17th August 2005

Today, all Allied Bank Limited shareholders can trade in the Banks shares at
their will.

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BOARD OF DIRECTORS
Tariq Mahmood

Chief Executive Officer

Mohammad Naeem Mukhtar


Director

Chairman / Non Executive Sponsor

Sheikh Mukhtar Ahmad

Non Executive Sponsor Director

Muhammad Waseem Mukhtar

Non Executive Sponsor Director

Abdul Aziz Khan

Independent Director

Mubashir A. Akhtar

Independent Director

Pervaiz Iqbal Butt

Independent Director

A. Akbar Sharifzada

Government Nominee Director

Sheikh Jalees Ahmed

Executive Director

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Products & Services:


The bank provides its customer various products & services, to cater there need of
investments, and other social or business requirements. These Product & Services offered
by the bank are as follows:

Personal Banking
Under Personal Banking, ABL offers: Everyday Accounts, Lifestyle Banking, Savings & Term
Deposits, Credit & Debit Cards, Domestic Remittance, Bank assurance, and e-Banking
Services.

Business Banking
Under Business Banking, ABL offers: Corporate & Investment Banking, Transaction &
Business Accounts, Home Remittances to Pakistan, Cash Management Solutions, Trade
Services, SME Financing, and Agriculture Financing.

Islamic Banking
Allied Bank has established its Islamic banking group to offer a diverse range of Deposit and
Investment related accounts ensuring Shariah compliance.

Other Services
Allied Bank's other services include: Extended Hours Banking, Online Banking, Safe Deposit
Lockers, Utility Bills Payments, Allied Phone Banking, and Customer Support.

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E-Banking Channels
Allied Bank maintains its reputation for innovation in education and embracing new
technologies in the banking sector of Pakistan. Their current suite of e-Banking services
comprises:

Allied Direct-Internet banking[

Allied SMS Banking

Automated Teller Machines (ATMs)

Transactional Alerts Facility

CONSUMER
In line with the Banks aim to provide a host of products and services to its
customers, substantial ground work has been done to establish a strong
consumer banking business. Furthermore, to achieve this objective, professionals
from across the industry have been recruited into areas of product development,
sales, credit policy, research, consumer analytics, call centers and service quality
departments.
The consumer portfolio, comprising the debit card, credit cards, auto loans,
personal loans and mortgages will be established phase by phase. However, we
are confident that our strengths, together with our largest network of online
branches, a superior technology platform, a big customer base and the Consumer
Personal Banking Group (CPBG), will take the Banks profitability to new
heights.

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BRANCHES & ATMS


Online Banking facilities are available to customers maintaining accounts at all
online branches across the country. The following facilities are available:
Cash Deposit for immediate credit to a remote branch.

Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Inquiry and Statement of Account

Additionally, account holders of all online branches can obtain the Allied
Cash+Shop Visa Debit Card for use at ATMs as well as at POS terminals. To
locate a branch simply select the city.

WORKING ENVIRONMENT
Allied Bank boasts of a work culture, which displays respect for all walks of life
and different ways of thinking.
Everyone at Allied Bank has a common corporate vision and values. However, all
employees are encouraged to grow as individuals and collaborate in teams.
Increments, bonuses and promotions are based solely on individual skills,
qualities, abilities and attitude. It is our aim to provide innumerable
opportunities for all those employees who show aptitude and the will to keep
learning.
Training programmes, both local and foreign, are also considered important for
employee growth.
Our complex and relatively changing environment teaches flexibility, provides
opportunities to learn and offers many career opportunities. We encourage
people who like challenges, can take their responsibilities seriously and handle a
constantly changing and high-pressure work environment, to come work with us.

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AREA OF OPERATIONS
Allied Bank has operating branches in four provinces, throughout the 38
districts of the country including Azad Jammu and Kashmir.

THE SHAREHOLDERS
Fourteen commercial banks, including three multinational banks are the
bank's shareholders.

Departments at ABL
1. Administration Department:
It is responsible for administrative services for all meetings, personnel
matters, budgets and accounts. It studies and reviews general
administrative policies and industrial relations methods used in the
industry, and advise management of possible improvements.
The Department also keeps track of contemporary administrative policies
and/or policy changes occurring in the industry which might affect the
Organization, or be of interest to it.

2. Human Resource Department:


The Human Resources department oversees the recruitment and management of
organization. In addition to set policies and procedures, this office maintains good
working relationships with respective unions, managers and other employee groups. This
department also oversees the functions of Occupational Health & Safety. The HR
function consists of tracking innumerable data points on each employee, from personal

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histories, data, skills, Capabilities and experiences to payroll records. To reduce the
manual workload of these administrative activities,
Organizations began to electronically automate many of these processes by introducing
innovative HRIS technology.
HR function is still to a large degree administrative and common to all organizations. To
varying degrees, most organizations have formalized selection, evaluation, and payroll
processes. Efficient and effective management of Human Capital Pool has become an
increasingly imperative and complex activity to all HR Professionals.

Evolvement of HR department
HR Department evolves at Allied Bank in 1999, after when allied became privatized.
And they feel the need of proper HR department because there was a need of proper HR
department in Allied Bank for many important solutions. That time the name of this hr
Department was manpower planning. That time work of that department was planning
for employee.

Policy Rationale
The purpose of the Performance Management Policy is to periodically review associates
work performance in order to promote the most effective use of expertise, to determine
the quality of service, to recognize achievements, and to identify training and
development needs.

3. Customer service Department


The consumer portfolio, comprising the debit card, credit cards, auto loans, personal
loans and mortgages will be established phase by phase. However, we are confident that
our strengths, together with our largest network of online branches, a superior technology
platform, a big customer base and the Consumer Personal Banking Group (CPBG), will
take the Banks profitability to new heights.
In line with the Banks aim to provide a host of products and services to its customers,
substantial ground work has been done to establish a strong consumer banking business.
Furthermore, to achieve this objective, professionals from across the industry have been
recruited into areas of product development, sales, credit policy, research, consumer
analytics, call centers and service quality departments.
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4. Marketing Department
Marketing department involves to sales the credit cards, and different products of the
bank with the help of sales representator of the bank, which are the part of the marketing
departments. Marketing Division, setup is responsible for all marketing operations
including planning, distribution, sales, farm advisory services,

5. Accounts department
Accounts department of allied bank responsible for the operation of maintaining daily
transactions occurring in the bank and prepare balance sheet and income statement and
also deals with the customerss accounts pass book and cash book procedures.

6. Finance Department
Finance department of an allied bank performs the following operations

Commercial Lending: Provides both fund as well as non-fund based financial


facilities, focusing on short-term trade related self-liquidating credits.
Consumer banking: The Bank operates a growing credit card business, under the
Master Card franchise, with global acceptance capability and a wide-ranging
merchant base. The Rupee-based travelers cheques product is one of ABLs most
attractive consumer products. The Bank also intends to substantially increase its
automated teller machines on a shared basis.
Treasury Operations: The Banks treasury employs some of the industries most
respected Professionals. The treasury systems operate under up-graded technology

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HUMAN RESOURCE MANAGEMENT


Management of people at work is very important in every organization, because
organizational goals and objectives are achieved by co-ordination of people working in
that organization. Human resources office of ABL is an important office of the entire administrative
setup. This office manages whole administrative matters relating to personnel right from
recruitment to selection, pay, promotion, etc. to retirement matters. The ABL does not
have its human resources department in every branch, rather all its personnel activities,
no matter how trivial they are controlled by human resources department at Head Office,
Karachi.

CLASSIFICATION OF ABL:
The categories of services in ABL are classified as under:

Category A
Chief Executive President, Executive Vice President (EVP)Senior Vice President
(SVP)Vice President (VP)Assistant Vice President (AVP)

Category B
Officer Range 6
Officer Range 5
Officer Range 4
Officer Range 3
Officer Range 2
Officer Range 1

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Category C
Clerical Staff

Category D
Drivers, Guards, Chowkidars, Peons, Sweepers

MISSION Statement of HR Department


Provide quality services to the City Manager, City Departments, employees and
applicants in the areas of employee relations, employee benefits, recruitment,
Testing, classification and compensation.

Role of HR department
Performance of an organization crucially depends on the efficiency of its personnel,
reflecting their skills and experience together with the human resource policy of the
organization. It is in this context
that the ABL provides an environment that motivates the employees to improve their
efficiency. Thus the management is constantly thinking of providing initiatives as a part
of human resource policies.
This includes improving the staff selection procedure, introduction of a system of
competitive reward,
Accountability: mechanism, effective learning and training and eliminating unnecessary
layers in the

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Hierarchy: ABL is also trying to bring positive change in the attitude and values of its
employees. The
main human resource functions are being performed by the Administration Department.
During FY05, the BSC has focused on effective implementation of policies in the areas of
performance appraisal, promotions, motivation through compensation management,
rotation of jobs and training etc.

Function of Hr department
o Assess the need of employees where, ever required.
o Provide equity opportunities for all the applicants
o Select the most appropriate person for the job. Or the purpose of
selection conduct interviews, tests etc.
o Provides training opportunities to the employee both on the job and
outside job.
o Motive the employee through the programs adopted by the head
office.
o Evaluate the performance of the employees with the help of their
immediate boss.

Human resource policy


Every organization has its human resources policy. The basic fact lying under such
policies is to develop such working condition and creating employment opportunities,
which can foster a great sense of unity among employees and protect the common interest
of all parties.

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A good human resources policy aims at employee development and their career
growth. It recognizes the achievement of its employees and gives them rewards.
According to ABL personal policy procedures manual it covers:
1.

Man power planning

2.

Role of personal division at the Head Office.

3.

Job analysis for a job specification.

4.

Recruitment and selection

Promotion, transfer, demotion and retirement


5.

Resignation

6.

Management by objectives, performance standards, assessments and appraisals.

7.

Training plans and development.

8.

Salary and wages

9.

Personnel records and statistics.

Industrial relations

Compliance management Work conditions

Transportation.

Medical schemes.

Tax liability.

Temporary Recruitment.

Internal communication & staff welfare.

Delegation of authority & power of attorney

Problem in Hierarchy:

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There is problem in the Hierarchy is that there is deep gap between the low level
employee and the top level Management. the lower level management has not approach
towards the top level management.

The structure is centralized.


The structure is very rigid.
There is lack of communication among the top and low level management.
There is lack of information flow between the low level management and the top
level management. Administration and management is combine

HR Planning IN ABL
Human resource department of the ABL designed decision-making process to ensure that
enough competent people with appropriate skills are available to perform jobs where and
when they will be needed.
The HR Department of the ABL meets the requirements of the various departments in
various ways.
If there is shortage of the employee in any branch they try to fulfill immediately the
vacancy as soon as possible
And assessing the available pool of people to determine the best fit.
For example
If any employee has an emergency or he needs the leave then the Hr department provides
the leave to him but also fulfill the need of that branch where from the person shortage
happened.
Or any there is happen the shortage of the employee in any department The HR department
appointed the other person from the other department. And after hiring the specialized
individual in that position they placed.

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In Allied bank, there are two sources of hiring the employees.


These are:

Outsourcing i.e. hiring of the contractual staff like, guard, drivers,


office boys etc.

Regular Staff by giving the advertisement in the newspaper.

Job Analysis
Job analysis is the procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for the job by collecting the following types
of information: work activities; human behaviors; machines, tools, equipment, and work
aids; performance standards; job context; and human requirements. Simply we may say;
job analysis consists of:
Job Description
Job Specification
Job description is a list of a jobs duties, responsibilities, reporting relationships,
working conditions, and supervisory responsibilities. While, Job specification is a list of
a jobs human requirements: the requisite education, skills, personality, and so on
another product of a job analysis.

Uses of Job Analysis:


Following are some uses of the Job analysis:
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Recruitment and selection

Compensation

Performance appraisal

Training

Discovering unassigned duties.

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Job Specification in outsourcing


Here, you can have the glance of the job specification that is used by Allied bank in
outsourcing:
Job Title: Data entry operator
Qualification: intermediate with at least second division.
Age: 20 25 years
Work experience: not required but preferably 1 year.
Abilities: reasonable, intelligent with good communication skills.
Personality: smart, physically fit and medically fit for the job.

Other requirements:
A hand written job application along with a passport size photograph, copy of National
identity Card, Qualification certificates, character certificate, driving license in some
cases and references if any.

Job Description in outsourcing


Here, you can have the glance of the job description that is used by Allied bank in
outsourcing:
Performs work of moderate difficulty in the supervision and participation of data entry
and record maintenance utilizing data entry terminal; performs other work as assign or
required.
Example of Duties:

Enters alphabetic, numeric, or symbolic data

Maintains manual support files.

Receives and processes requests.

Verifies eligibility or specific master file records for purging.

Plans, organizes and directs the work of data entry personnel.

Operates various types of office equipment.

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Job Specification in regular Staffing

Here, you can have the glance of the job specification that is used by Allied bank while
recruiting the regular staff:
Minimum Qualification: Masters degree within required discipline
Work experience: not required but preferably 1 year.
Personality: smart, physically fit and medically fit for the job.
Abilities: Good command on English language with Computer knowledge.
Entry Test: IBA Karachi.
Interview: HR department, Islamabad.
Other requirements:
A job application along with a C.V.

Job Description in regular Staffing


Here, you can have the glance of the job description that is used by Allied bank while
recruiting the regular staff: here are some exemplary responsibilities:

implementing the delivery of sales strategies and targets and


motivating employees to meet these;

Establishing and maintaining effective relationships with new and


existing customers.
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communicating, implementing and monitoring compliance with


corporate standards and procedures;

processing data to produce accurate facts, figures and reports;

checking accounts and initiating action if they are overdrawn without


arrangement or are in excess of agreed arrangements;

Networking with appropriate professionals.

Representing the bank within the wider community.

Recruitment and Selection Process

Recruiting process of the ABL


In Allied Bank Ltd. Employees are recruited by personnel division in accordance with the
bank policy. Allied Bank Ltd. uses two different methods to meet its personnel needs.
i. Direct Appointments
ii. Promotion
Direct appointments are usually made in upper levels of hierarchy like in the case of
appointing directors & presidents. The employees are also recruited through discrete
selection procedure. The promotion is an upward movement or advancement of an
employee in an organization to another job. It involves increase in salary grade status &
responsibilities there is ban on all fresh appointment, so to meet its personnel
requirements vacant posts in Allied Bank Ltd. through recruitment on contract basis and
promotion of existing employees.

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RECRUITMENT POLICY IN (ABL)


One of the most important fetor of recruiting aspect of new human resources is the
movement of work force inside and outside Pakistan. To counter this time to time
drainage of work force is a continuous recruitment. Program is followed which enables
ABL to maintain its working standards and work force.

Sources of Recruitment:
There are several internal and external sources of recruiting the right candidate for
the organization, like:
Finding internal candidates.
Rehiring.

Internal Sources.

Succession planning etc.


Advertisement
Employment agencies

External Sources.

Executive recruiters.
Referrals etc.
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In Allied bank: In Allied bank the major source of recruiting employees is


advertisement in the newspapers. Both types of sources of employment are
being practiced in this bank.

Selection process
After building a pool of candidates, the next step is to screen out the best
candidates according to your requirement by using various testing tools and
techniques. Careful selection of employees is an important issue because of three
main reasons; which are given below:
Employees with the right skills and attributes will perform more
effectively.
The cost of making a wrong hire can become exorbitant
considering the time and money invested in the selection and
training process.
Advertising for the applicants in the leading news papers

The legal implications of incompetent or negligent hiring.

The collection of the application

Short-listing the applicants

Selection process operates in the ABL.


Selection process of ABL is well developed. The selection process is described as.
Testing the applicants

Short-listing the applicants in the test

Interviewing the applicants

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Selection of the candidate

Testing Tools:
Here are some testing tools & techniques that are used in the selection process:
Test of cognitive abilities
Test of motor and physical abilities.
Measuring personality and interests.
Achievement tests etc.

Testing in Allied bank:


In Allied bank, IBA test is conducted of all those employees who have appeared in
recruitment process to screen out the best candidates. IBA written test consist of
English, Math, General/Computer Knowledge and Intelligence part based on
multiple choice questions pattern, with negative marking in case of wrong answer.
After testing of the candidates, the next step is interviewing of those candidates
that have passed the IBA written test.

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Interviewing Candidates:
After testing the candidates, the next step involves conducting interviews of the
best candidates. An interview is the procedure designed to obtain information from
a person through oral to oral inquiries. Managers use several types of interviews in
the work settings. There are basically three main types of interviews; selection
interview, appraisal interview and exit interview.
Managers use various techniques for conducting the selection interview; such as:
Structured or unstructured interviews
Stress interview
Panel interview
Computerized interview
Mass interview etc.

Interviewing in Allied bank:


In Allied bank, panel interview is conducted to screen out the best candidates for
the job. Here; from the pool of the candidates, who have appeared and cleared IBA
written, interview by the panel of specialist is conducted. All those candidates;
who have cleared this interview are then posted to the vacancies they have applied
for or that meet the skills and abilities of the selected candidates.
After selecting the candidates by using various testing and
interviewing techniques; the next step is to train those candidates who are selected
in this process.

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Training, Retraining
and
Development approach
Training:
Training is a job-oriented activity. It provides or improves specific skills for the
current job. A manager may be trained in communication skill to improve reading,
writing, listening and speaking. A technician may be placed in a factory to acquire
job-relevant skills in a computerized machine. It makes a person fit for the present
work through updating or upgrading of skills. While in Allied bank training period
is for 6months.

Retraining:
For the improvement of employees due to advancement of technology. Retraining
is only possible when workforce possesses a sound general education and has
already been trained of broad line skill. But in Allied bank they conduct seminars
for this purpose.
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Development:
Development is a concept-oriented preparation for human relation, problem
solving in structured or unstructured situation. It provides conceptual skill to
employees.
There are two types of training approaches.
Off-job training approaches
On-job training approaches

Off-job training approaches


There are further types of off-job training approaches.

1. Occupational Training schools


There may be an individual who is aware of his insufficient skills, at hand, as
compared with those required by the work place. Such a person may be provided
desirable job-oriented skill training by a school. The training school may be in
public or private sector. The individual would opt for training programs in the
respective skills.
2. Cooperative Education
A cooperative education programs are a feasible vehicle of creating and sustaining
liaison between the institution and the entrepreneur. College provides conceptual
framework while the enterprise engages the strident with work experiences.
3. Vestibule training
An employee may not be placed on actual workbench because of the pressure of
work, efficiency of the already trained manpower and quality controls. A separate
36

simulated workplace is identified to house the learners. It may be an in-service


training school established by the organization.

On job training approaches


1. Apprenticeship
A group of potential employees is inducted to hob-specific training under the
guidance of matured and skilled personnel. If it is provided first time to a trainee,
it is initial training that includes induction training as well. If trainee has already
initial training, then it is only the induction training provided through
apprenticeship. The apprentice is paid subsistence money to manage boarding,
lodging and daily needs.
2. Coaching
A coaching is an instructor of skills. Coaching teaches skills on the basis of oneto-one personal contact between the trainee and the trainer. It is an equally useful
training method for managers and non-managers in business, industry, education
and government. Allied bank includes training after 6 month probation for final
evaluation of candidate, candidate goes to Islamabad (national institute of business
and finance) for one week training then he is employed.

3. Mentoring
A mentor means an experienced and trusted adviser. Mentoring is an advanced
form of coaching designed for potential managers, of various levels, in conceptual
skills. In Allied bank for this purpose seminars are conducted.

4. Job Rotation
An employee is shifted from one position to another, at lateral level from one job
to a similar of differentiated and diversified work, preferably, in ones own
discipline. The similarity of elements in the previous and new jobs helps the
trainee in acquiring the new skills. In Allied bank this situation is already existing.

5. In-Basket Training
The trainee is attached with a senior person. The trainer provides the trainee a
basket containing official documents, i.e. memos, letters, reports, etc. The trainee
studies these documents and learns about that level of management.

37

Carrier Management at ABL


ABL believe in hiring bright, talented, & highly motivated individuals across its
businesses. ABL selection process, by necessity, is challenging and one ensures
that its standards of excellence are maintained. Following measures are taken for
better carrier of employees:
Workshops
Seminars
On the job training
Training by National Institute of Business and Finance

Compensation Management
To attract and retain the best talent, companies require compensation and benefits
structures that are both enticing and consistent with market standards.
It is an integral part of the management of the organization. Compensation
Management contributes to the overall success of the organization in several ways.
Employee compensation is also a way to contribute in success of the organization,
it refers to all forms of pay or rewards going to employees and arising from their
employment.
Allied Bank Limited offers three types of compensation to its workers

Provident Funds
Employees Insurance Scheme
Gratuity

PROVIDENT FUNDS
Provident fund scheme is funded by equal contribution from both employer and employee at the rate of
8.50% of basic salary is deducted every month from the salary of employee and is doubled by Bank. It is
payable after retirement of the employee.

38

EMPLOYEE INSURANCE SCHEME


After confirmation ABL is given life insurance. The amount of insurance is equivalent to
48 basic salaries of the employee. In this way, the worker feels more secure and satisfied
while working as ABL employee.
GRATUITY
Employees who have completed 5 years of service are entitled to Gratuity
after retirement. Bank compensates the employees on the basis of one basic salary for
every completed year 10.

PERFORMANCE APPRAISAL:
As the name indicates, performance appraisal is evaluating the performance of the
employees for given period of time. It is a systematic evaluation of the individual with
respect to his performance of employees as ABL is appraised on the basis of Annual
Confidential Reports. A Performa made by head office is send to immediate superior for
filling. There are three different types of appraisal preform as used for evaluating the
performance of an employee in ABL:

Executive
Officers
Clerical Staff

Increments are decided on the basis of these appraisal reports according to


the performance role in the development and encouragement of the staff. In ABL the
performance of the employees are evaluating on the graphic or linear method.
Employee level:

In ABL following parameters are used to evaluate performance of an individual


employee as well as performance of management level:
1. Job knowledge
2. Communication
3. Interpersonal relationship
4. Adoptability of new things
39

5. Motivation
6. Customer focus
7. Initiative to work
8. Team work
9. Productivity
10. Time management
11. Work habbits
12. accomplishment of assigned task
Management level:

1.
2.
3.
4.
5.
6.

Leadership
Planning and organizing
Problem solving and decision making
Development of subordinates
Consensus building to take new task
Creativity

Probation Period:
The services of a probationer may be terminated at any time by the competent authority
without notice or pay or he/ she may resign without giving any notice or pay in lieu
thereof.
In Allied bank
In Allied bank there is 6 months probation period used to check the performance of new
employees whether it is up to the mark or not. If performance is not satisfactory then new
employee will be dismissing from job and performance is above par then employee can
gain permanent job with the bank.

Salary Administration:
A salary is a form of periodic payment from an employer to an employee, which is
specified in an employment contract. It is contrasted with piece wages, where each
job, hour or other unit is paid separately, rather than on a periodic basis.
In Allied bank:

Salary structure in ABL is competitive as compare to other banks. BPS starts from
12000 for a new trainee or employee.
INCREMENT AND PERFORMANCE EVALUATION:
40

All the employees of ABL are given an increment of 10% after every 6 months of period.
Bonuses are also given on every Eid that is equalent to the basic salary of every
employee.The process of performance evaluation keeps on going in banks, special
examsa n d t e s t a r e a r r a n g e d t o e v a l u a t e e m p l o y e e s . A n d t h e d a i l y p e r f
o r m a n c e evaluation is also done by seniors, so that those employees who really perform
well are given promotions every year

Promotion Criteria
Promotion cannot be claimed as a matter of right as on the basis seniority but on the basis
of performance. Main criteria for promotion are the performance and skills of the
individuals though seniority is also taken into consideration but it is of secondary
importance. ABL has defined perfect career paths for its employees and the staff gets
promotion accordingly in their grades by way of transferring from one position to the
other. Normally employee is promoted to the next grade after 3 years but promotion is
totally based on 3 years performance of the employee
Main criteria for promotion of an employee in ABL:
1. Education
2. Job knowledge
3. Experience
4. Performance
If an employee is fulfilling all above requirements then he will be promoted after 6
months.

Rent or residence facility:


Traditionally residential facilities are obtained by employees from their employers
or organizations in which they work. If no residential facility is provided then
employers paid the rent of such accommodation in which employees are living.
Usually well reputed or public organizations give this facility to their employees.
In Allied bank:

No rent or residential facility provided by ABL to their valuable employees.

Education of children:
Some big organizations give education facility for the children of
employees. In order to achieve this task they can give allowances or cash or
direct payment of fees. Some time workers welfare schools are established
for the convenience of employees.
In Allied bank:
41

In Allied bank there is no any facility is given to employees in terms of


education of children.

Insurance:

Almost all companies are providing insurance facility to their personals.


Companies usually give this facility to their permanent workers or
employees. Probationers are not come under this head.
In Allied bank:

All employees of Allied bank are insured except from probationers or


temporary employees. They insured by ALLICO insurance company
upto 6 million or six lakh.
If an employee will expired during duty hours then his family will receive
full amount as said six million.
If an employee will expire after duty hours then his successors will receive
half or fifty percent of the full amount.

Health and safety program:


Health and safety programs include medical care and establishment of safe
environment for employees. In order to regulate these programs firms
maintain their own policies to ensure employees that they are safe and
company consider them as a valuable asset for their organization.
In Allied bank:

The bank is providing proper health awareness by recommending


different tests for employees from time to time without any cost and in
order to regulate safety measures KB has insured its all assets including
human resource staff, vehicles, furniture, equipments, cash etc.

Medical care:
Some time medical allowances are given to employees by their employers while
on the other hand if allowances are not given then charges incurred on
hospitalization are paid by organizations. So, in this way medical care facility is
provided to personals.

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In Allied bank:

Employees of ABL are enjoying medical care facility. Any employee of the Allied
bank can claim to pay hospitalization charges of his family members. The claim is
approved by R&D department, for approval purpose certain type of documentation
is necessary which should be fulfill by employees. After this employees can enjoy
this facility.

Transportation:
Transportation means conveyance facility to workers of any organization. Some
well reputed organizations give allowance to meet their transportation charges or
in other way companies provide its own transportation to workers in order to
enhance their efficiency and motivational level.
In Allied bank:

There is no transportation facility provided to male employees only for females


transportation is provided on local basis.

Pension:
It is a plan that provides a fix sum when employees reach a predetermined
retirement age or when they can no longer work due to disability. In recent time
only government sector give pensions to their workers and not private sector.
In Allied bank:

In ABL there is no pension plan for employees but gratuity is given to workers

Transfer:
ABL takes a lot of its employees so there are very few inter branch transfer. .Further
different kinds of problems may crop up in transferring an employee from one station to
another station. Therefore transfers are rarely made and are only on them managerial
levels according to the requirements of position. It may also be possible at the request of the
employees.

Vacation criteria:

43

Every organization whether public or private has its own vacation plan which is
abided by employees. There are many types of leaves given to workers like casual
leaves, mandatory leaves, sick leaves, annual leaves etc.
In Allied bank:

ABL has its own vacation criteria including:


1. Entitlement of 30 leaves in 1 year per employee
2. Out of thirty 2 weeks are mandatory leaves
3. Remaining leaves can be enjoyed by employee at their will

Types of leaves:
At ABL., following types of leave are granted to employee.
SICK LEAVE
The annual entitlement is 30-calendar days sick leave. In the event of prolonged illness
the competent authority may sanction further sick leave up to a period, not one ending the
period of leave that has been lapsed.
EARNED LEAVE
This leave is over 45 days in a calendar year. Maximum period of earned leave, which
can be taken at one time by an employee, is 60 days. Under special circumstances at the
discretion of chief executive.

EXTRA ORDINARY LEAVE


Extra ordinary leave can only be granted to an employee when no other leave is available
to him. An unauthorized leave at the discretion of the competent authority is treated as
extra ordinary leave. No pay allowance or any other benefits or increments are given.
MATERNITY LEAVE
Female staff is entitled to maternity leave for period not exceeding six weeks. Time interval
between first leave and last leave should not be less than two months.

ALLOWANCES
The Grant of special pay or allowance to the holder of any post or to any other employee
shall require the sanction to the competent authority kinds of allowances for employees at
ABL are: House rent allowance
Technical allowance
Utility allowance
Washing allowing (non-clerical staff
44

FRINGE BENEFITS

Medical facility
Facilities at residence
Leaves fare assistance
Grants of incentives for improving qualification every year Increment (annual increase in
the basic pay)
Cash prize

Separation from Employment


RETIREMENT:
An employee shall retire from service on attaining the age of sixty years, provided that
the board in a special cade may allow extension in its desecration. At the time of retirement
the worker are given their compensation on the form of provident fund and gratuities.
RESIGNATION:
An employee other than a probationary officer may resign from the services of the bank
after providing prior notice in writing or in lieu of notice pay to the bank an amount
equivalent to his substantive pay for the period of notice.
TERMINATION OF SERVICES:
The bank may terminate the service of any employee or call upon him to resign from the
service of the bank. In either case he will be entitled no notice in writing. Salary in lieu is given for the
period as under:90 days notice Category A to Category D for confirmed employees.30 days
notice Employees on Probation.
DISCHARGE
When an employee in the opinion of the management is incapable or has ceased to be capable by reasons
of infirmity of mind or body. The competent authority may discharge him on medical ground
and pay him such compensation as may be decided by the board

DISCIPLINARY RULES:
It is a force that prompts individuals or group to observe rules regulation and procedure,
which are deemed to be necessary for the effective function of the organization.
Discipline; in ordinary conduct of affairs by the members maintain harmony and peace
in organization willingly.1.

Observance of rules.
45

Maintenance of secrecy.

Absence from duty

Misconduct

Direct representation to director

Disobedience with any lawful and reasonable order of the supervisor i.e.transfers.

Fraud and forgeries.

Damage or loss (bank property)

Sleeping while on duty.

Collection of money with in the office premises for any purpose not approved by
bank.

Striking..

Unauthorized use of bank property.

.PENALTIES:
An employee found guilty under any rule or any offense of misconduct is liable to one or
more of the following penalties.

Reprimand
With holding for a specified period confirmation on promotion or increment
Recovery form salary of the whole or part of any particular loss caused to the bank
by the employee.4.
Demotion to any lower grade.
Removal from services.
Termination by way of punishment.
Dismissal from services.
Compulsory retirement from the service with or without retirement benefits.

46

INDUSTRIAL RELATIONSHIP
The relationship between the employers and employees and trade unions is called
Industrial Relation. Harmonious relationship is necessary for both the employers and
employees to safeguard the interests of both the parties of production.
The term industrial relations relates to the state of relations in an industry respect of
persons involved in work. Major actors in this are the owner who provides funds for
financing the organization, manager who is assigned the responsibility to manage the
affairs of the firm, workers who provides the grass root support for performance of work
in accomplishing the objectives of the firm and government who play the role of
legislating rules and regulations governing the industrial relations. The whole scheme
which integrates the above actors is known as industrial relation system.
The industrial relations in Allied Bank are quite good and efficient. The relation with
mangers and unions are cordial. The demands put up by the unions are considered by the
management and where possible benefits are allowed. Allied Bank has very strong
internal relations. Employee relationships are based on candor and confidence. Allied
banks external relationships are very strong and healthy. Allied bank communicates to
SBP through letters.

Negotiation with UNION


Unions or Labor Unions play an essential role in influencing key decisions in an
organization; unions are beneficial for the organizations if they contribute positively in
the interest of the company. In era of nationalization in Pakistan the power of labor
unions was extravagant but passage of time demoralized the power of unions as huge
state owned organizations were privatized with the passage of time, especially the
banking sector. Still Unions are very much proactive in Big Five Banks of the Country.
Many internal and external decisions are made in bank due to extensive influence of
Unions. Since the inception of our country many sectors were facing Union problems
since decades, especially the banking sector was very much effected from the era of
nationalization when majority of the big banks of Pakistan were operated in the shade of
Government of Pakistan, although majority of the big banks have been privatized but the
element of Union is still a major part of the local banks, especially the big five banks of
the country i.e. United Bank Limited (UBL), MCB Bank Limited (MCB), Habib Bank

47

Limited (HBL), Allied Bank Limited (ABL) and National Bank of Pakistan (NBP) are
remain in the influence of Unions.
In ALLIED bank it is the duty of HR department to negotiate with unions Silk bank
handle these relations very efficiently through proper negotiation with unions. ALLIED
bank promises to employee through trade union to give extra bonuses on target
achievement. As silk bank is providing banking facilities so it deals mostly with literate
workers and official staff. To deal with such workers is a task for a person with high
intellect. The HR manager is performing this task very well. Most of the issues are
cleared even before the problem becomes an uncontrollable issue, hence HR department
at ALLIED bank is performing an effective role.

System of Communication
Communication systems increase the productivity for banks, leasing and factoring
companies, equity houses and many other financial institutions. Today, the biggest
challenge faced by banks and finance institutions is to provide customer satisfaction, and
thus obtain customer loyalty and offer solutions to continue this loyalty.
Banking sector, focused on the customer loyalty, can reach this goal with high
operational efficiency. Employees in banking and finance sector can work more
productively and reach their business goals more easily. Employees of the banks and
financial institutions can communicate with their customer in a more productive way and
operational costs can be decreased. Communication system integrates audio, video,
conference, presence, instant messaging, fax, e-mail features and mobility, changes,
facilitates and accelerates the working methods of the employees. In addition, the system
has the option to record all customer service calls and allow management to quickly
review to ensure the highest quality customer interaction with the bank. When a bank is
able to identify and correct problems, customer retention can be managed and improved.
Personnel at Allied Bank are of the view that both manual and automated systems are
effective ways of message entry and transmission but manual data systems have certain
cons as compared to their counterpart the automated data systems. Manual data systems
are slow and tedious as compared to automated systems. Moreover, there are more
chances of human error occurring in the usage of manual systems as compared to
automated systems and this error removing is crucial to the efficient functioning of the
Allied Bank. Moreover, manual data systems are less secure and tampering with data is
possible via their use and to minimize that risk Allied bank shifted to the use of
automated Data systems in 2002

TERMS & CONDITIONS


CONTRACT:

OF

AN

EMPLOYMENT

48

Employment contracts are contracts between an employer and employee.


They typically lay forth information regarding responsibilities, duties and
employee rights. The contract lasts until the employee leaves the company
or a new contract is negotiated. All employees of Silk bank are required to
follow a Code of Ethics and Business Practices in all areas of professional
conduct. They must abide by the following:
All the employees are required to comply with all the laws, rules and
regulations governing Silk bank, including the Banks policies,
procedures and standards, the State Bank of Pakistan and the Security
and Exchange Commission of Pakistans regulations applicable to the
Bank.
All employees must function with integrity within the scope of their
authorities and follow directions given by the person(s) under whom
they are working.
Core value of Integrity must be promoted by upholding fairness,
equality and respect for all team members. Discrimination,
harassment of all types, intimidation and other negative practices are
strictly prohibited.
Harassment includes any unwanted, immoral act or attitude, including
abuse of authority, creating a hostile environment which is demeaning
to work performance or the career of any employee in any capacity.
The Bank is entitled to take disciplinary action in case of
unauthorized absences.
Employees are not authorized to indulge into unfair labour practices.
Employees are not authorized to use Banks facilities to promote
trade union or officers association activities, or carry weapons into
Bank premises unless so authorized. They must not carry on above
mentioned activities during office hours.

No employee shall indulge in any political activity, including forming


or joining a political association.
49

CONSTITUENTS
ISLAM:

OF

INDUSTRIAL

RELATIONS

IN

Islam is focused on its role in human existence. Therefore at least in principle,


ethical considerations may take precedence over productivity considerations in IR in an
Islamic society. Seeking to earn one's living in a lawful manner is considered a religious
observance.
The Prophet Muhammad said:

"Allah loves those believers who labor to earn a living through lawful
means"(Al-Tabarani)

Wages, according to Islamic principles, should be determined prior to work and


immediately paid after work is accomplished.

The Prophet said:

Give the laborer his wages before his sweat dries (Ibn Majah). Islam
ordains that employees should be paid reasonable monetary
compensation.
It should be high enough to afford the basic necessities of life as a minimum level.

Flaws in practice
In every organization there may be possibility of flaws in regulation of policies or poor
policies regarding human resources. Similarly there are also some flaws ALLIED bank
regarding HR policies.
In Allied bank:
In Allied bank following are draw backs:
Centralization:
The most important draw back of HR policies OF ABL is centralization, which means
that all employees are selected by centralized corporate office Islamabad so there should
be decentralization because branch wise selection can reduce many problems.
50

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.

RECOMMENDATIONS

H.R.Department personnel should corporate to externals, as it is also


a source for goodwill.

Need to make enough training durations.

Selection procedure duration should be short.

Need to close the gap between employees and management.

Need to decentralize the decision making.

CONCLUSIONS
In despite of all things and discussions, Allied bank has a strong H.R.Department. Allied
bank H.R.Department has strong management and enough resources (e.g. well trained
staff and financial). The environment of Allied bank is very informal and more friendly.
They proved to be not only the bank but more than a bank. It has been a really good
experience

51

REFERENCES
Human resource management (g. Dessler)
Human resource management (Sherman)
Job advertisements of Allied bank
Allied banks annual reports
Lahore branch of Allied bank
www.google.com.pk
official web site of Allied bank
www.abl.com.pk
others.

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