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HUMAN RESOURCE MANAGEMENT

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ACKNOWLEDGEMENT
We thank Almighty Allah, who gave us strength to perform our duty
honestly with zeal and zest. We are grateful to Mr. Saeed Khaki for taking us
through the tough curriculum of Human Resource Management and appeared it
to look so easy. His versatile knowledge and extensive experience in this field
greatly helped us develop our knowledge and concepts. We are grateful to him
for assigning this project, which has further refined our thought about this
diverse field. Finally we would like to dedicate this humble effort to our
families and friends, who supported and bore with us through the difficulties
during its preparations.

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Executive Summary
This project is aimed at studying Human Resource Department of Askari
Bank Ltd. Following points have been discussed in the study:
An overview of Askari Bank.

Human Resource policies and practices being followed by the bank.


The project mainly remained focussed at various human resource
techniques and practices being followed at Askari Bank.

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TABLE OF
CONTENTS

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20.

Subject
Introduction
Vision
Mission statement
Goals
Branche Network
Services being provided
Organizational structure
Hierarchy of Askari Bank
SWOT Analysis
Strategic planning
HR polices
HRM practices
Recruitment
Selection
Training and development
Compensation
Performance management
Interviews
Conclusion

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INTRODUCTION
Askari Bank Ltd was incorporated in Pakistan on 9 October 1991 and
commenced operations in April 1992, as a public limited company. It has since
expanded to a nation-wide presence with more 226 branches being handled by a
human capital of more than 6000 employees. It has the lowest turnover in the
domestic banking sector.
The Bank is listed on the Karachi, Lahore & Islamabad stock exchanges
and its initial public offering was oversubscribed by 16 times. Askari Bank is
principally engaged in the banking business as defined in the Banking
Companies Ordinance, 1962. As on December 31, 2009, the Bank had the total
assets of over Rs. 254 billion, with around 1,000,000 banking customers. Askari
Bank has a Correspondent Bank Network in more than 95 countries with about
167 banks.
Askari Bank is the only bank with its operational Head Office in the twin cities
of Rawalpindi-Islamabad, which have relatively limited opportunities as
compared to Karachi and Lahore. This created its own challenges and
opportunities, and forced them to evolve and outward-looking strategy in terms
of market emphasis. As a result, Askari Bank developed a geographically
diversified assets base instead of a concentration and heavy reliance on business
in the major commercial centres of Karachi and Lahore, where most other banks
have their operational head offices.

VISI
ON
To be the Bank of First Choice in the Region.
MISSION STATEMENT
To be the leading private sector bank in Pakistan with an international
presence, delivering quality service through innovative technology and effective
human resource management in a modern and progressive organisational culture
of meritocracy, maintaining high ethical and professional standards, while
providing enhanced value to all our stakeholders, and contributing to society.
GOALS

To achieve sustained growth and profitability in all areas of business.


To build and sustain a high performance culture, with a continuous
improvement focus.
To develop a customer-service oriented culture with special emphasis
on customer care and convenience.
To build an enabling environment, where employees are motivated to
contribute to their full potential.
To effectively manage and mitigate all kinds of risks inherent in the
banking business.
To optimise use of technology to ensure cost-effective operations,
strengthening of controls, efficient management information system,
enhanced delivery capability and high service standards.
To manage the Bank's portfolio of businesses to achieve strong and
sustainable shareholder returns and to continuously build shareholder
value.
To deliver timely solutions those best meet the customers financial
needs.
To explore new avenues for growth and profitability.

BRANCH
NETWORK

Total
Branches
226
Zone Wise Distribution

North (Gilgit-Baltistan, Khyber Pakhtunkhwa, Azad


Kashmir, Islamabad and Punjab (North of Jhelum))

Central (Rest of Punjab)

South (Sindh and Balochistan)


Sub Branches
Foreign Branch (Bahrain)
SERVICES BEING PROVIDED

Consumer Banking

Visa Debit Card.


MasterCard Credit Card.
Mortgage finance (Home loans).
Business finance (Business loans).
Personal finance.
SmartCash (Running finance facility for consumers).
I-Net Banking (internet banking solutions).
Askar (auto loans).
Askari Touch 'N' Pay (online utility bill payment services).
Askari Value Plus (flexible deposit accounts).
Cash Management Services.
Rupee traveller cheques.
Askari investment certificates.

Islamic Banking
Agriculture Banking
Corporate & Investment Banking

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1

5
Board of Directors

Audit
Committee

Executive
Committee

President & Chief


Executive

Company
Secretary

Chief
Credit
Officer

Group Head
Marketing &
Strategic
Planning

Chief
Financial
Officer

Country
Head
Human
Resource

Chief
Information
Officer

Group
Head
Operations

Global
Treasurer

Country
Head
Islamic
Banking

Country
Head
Consume
Banking

Country
Head
Risk
Management

Strategic
Planning
& Economic
Research

Country
Head
International
Banking

Training &
Development

Country
Head
Electronic
Technology

Country
Head
Credit
Administratio
n

Wholesale
Bank Branch

Islamic
Banking
(31
Branches)

Secured
Assets
Products

Country
Head
Special Asset
Management

Marketing
& Media

3 Regional
Foreign
Trade Units

Executive In
charge
President
Support

Service
Quality

3 Regional
Operations
Units

Head
Legal
Affairs

Office
Country
Head
Compliance
& Data
Country
Head
Audit &
Inspection

Complaint
Managemen
t

Chief
Information
Security
Officer

Country
Head
Establishment

Bahrain

Unsecure
Assets
Products

HR DEPARTMENTS

Country Head HR
I

Training &
Development

Recruitment &
Selection

Organisation
Development

HR Operations

Policies
formulations
- Performance
Management

Compen &
Benefits
Adm
- Payroll
- Leave

SWOT ANALYSIS of Askari Commercial Bank


STRENGTHS
Holds a sound repute in the financial circle
Personalized services of the staff to the employees
Located in the commercial area, so that the customers face no problems
in reaching to the bank.
Maintaining the healthy correspondent relationships with foreign banks
Provide a record business in exports sector
It has a reliable and easy to use internal computer system.
All the transactions and information regarded the customers deposits has
been computerized. Currently, Unibank System is being practiced for this
purpose. Now Askari Bank is decided to change the Unibank System
ACBL has launched its Mobile ATM Bus Service, which is the Pakistans
First Mobile ATM Bus Service. No other bank has taken initiative of
mobile ATM Bus yet.

WEAKNESSES
No advertisement on electronic media has been seen yet.
Since, ACBLs major competitors are Union Bank Limited and Bank
Alfalah has started large media campaign, so keeping in view these
threats, Askari Bank should emphasize more on its advertisement.
some of the employees are burdened with over work.
Division of work and description of job is not properly defined to each
and every staff member.

OPPORTUNITIES
All the opportunities of the 21st century are to be availed in the
information technology. Information technology is the future. Therefore
ACBL should emphasize much on IT,
ACBL should emphasize on E - Banking. In which Bank can design a
universal account like other foreign banks, to enhance online facilities.
Askari Banks growing business requires an extensive branch network.
There are great opportunities for ACBL for the expansion of its business.

THREATS
Askari Bank is facing a strong competition by its major competitors;
Union Bank and Bank Alfalah. Business of these banks is also growing
with very high pace. So in order to achieve the sustainable growth in a
market, ACBL has to remain vigilant about the ever changing
environment and the competitors.
All the competitors are using different means and methods to popularize
their product and services. So ACBL should keep in mind that a customer
cannot come to the bank until he know that my demands will be fulfilled
over here.
ACBL should enhance the Pay Packages given to the employees, because
it has been noticed that the competitors of the ACBL are giving more
suitable pay package to their employees.
ACBL should enhance its Branch Network, in order to capture the market
of different areas.
The SWOT analysis of the bank signifies that its strengths overcome its
weaknesses and its opportunities are more than its threats. This is positive sign
for any Organization
STRATEGIC PLANNING

This Group was recently established to strengthened the marketing and strategic
planning function within the Bank. The main objective of this Group is to
facilitate the management in competitive positioning of the Bank in line with
the market dynamics while focusing on key strategic objectives. The Group also
manages marketing activities from a central platform aimed to improve the
Banks image and also to serve our communities and society at large through
corporate social responsibility projects.
The Group also monitors economic developments by a dedicated research desk,
created for this purpose, that also analysis the market in order to align our
business strategies with competition. The economic research desk also provides
regular updates on different industries, competition, money and stock market
trends, and value drivers in order to keep the management abreast with current
scenarios aiding them in the decision making process.

In order to ensure a renewed focus on customer satisfaction the group endeavors


to introduce a service strategy which would bring to attention the service grey
areas that lead to customer attrition. A customer complaint management unit
focuses on customer concerns and addresses them by plugging the gaps in
processes and workflows.
In the area of strategic planning, the Group aims to facilitate various business
functions by setting strategic direction backed by implementation plans with
well defined goals and timelines that enables objective monitoring of such
plans. The Group also oversees product development initiatives, generally based
on market and customer feedback and also keeps the existing products under
continuous review using product performance measurement scorecards.
HR POLICY OF ASKARI BANK
Askari Bank has a progressive and a dynamic human resource (HR)
philosophy. The Bank believes in transforming its human capital into a key
source of competitive advantage. There is a strong value system in place, which
is driven by result orientation, adaptability to change, humility and respect for
subordinates and peers. The Bank believes that investment in human capital is
critical for achieving and sustaining growth. The Banks constant endeavour is
to create a performance driven work culture with focus on employee satisfaction
and retention. They strongly believe that the interests of the Bank and the
employees are inseparable. They try to create a we culture where there is
mutual trust and respect for each other. They encourage ownership behaviour so
that everyone feels responsible for the performance and reputation of the Bank.
They are committed to develop and enhance each employees skills and
capabilities through extensive in-house and external training programs and job
rotations.
HRM PRACTICES
This section includes a summary of the HRM practices being followed at
Askari Bank and a detailed study of Training and Development. The HRM is
one of important divisions at the Head Office that is responsible for planning,
recruitment, staffing, training & development, compensation, performance
management, employee relation and evaluation. The Division also handles
matters relating to administration that proves an integrative linkage between
HRD and Administration.

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PLANNIN
G
HR Department (HRD) is responsible for an effective HR planning and
forecasting regarding demand and supply of employees.
Forecasting Employee Demand.
Employee demand at Askari Bank is
derived from internal growth and influenced by following factors:
Opening a new branch.

Setting up new technology.

Changes in customer demand.

Introduction of new services.


Forecasting Employee Supply.
HRD ensures uninterrupted employee
supply as under:
Transfers.
Askari Bank transfers its employees from one branch
to another within the same region, especially whenever a new branch
is opened.
Internal Movements.
Internal movements, which include
promotions and rightsizing.
Rotations.
Job rotations are also done within the departments
from time to time to decrease monotony and keep interest in the job.
It is most common for On Job Training of Management Trainee
Officers (MTOs).
Temporary / Contractual.
Temporary
and
Contractual
employees also work in Askari Bank normally in ETD who work as
Hardware Technicians and Software Engineers etc. They are generally
contracted from different Software Houses. Though some of the
employees at Askari Bank are permanent, yet most of them are on
contract.
Employee Shortage.
Askari Bank has currently no growth strategy as they
are not planning to open any new branches this year. The merger of Askari
Leasing and doing away with an IT specialist in each branch has rendered over
500 employees surplus. This makes no employee shortage for Askari Bank at
the moment but Askari Bank covers it by hiring in following two categories: Entry level hiring.
Experienced bankers hiring.

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RECRUITMENT
Recruitment Process. Askari Bank recruits both fresh and experienced
persons on regular basis to support its growth strategy. For this Askari Bank
uses both internal and external recruitment sources.
Internal Recruitment. Recruitment is the first part of the process of filling a
vacancy; it includes the job analysis, the consideration of the sources of suitable
candidates, making contact with those candidates and attracting, applications
from them. An organization can never be better than the people it hires and this
is a concept that Askari Bank firmly believes in. They boast about never
compromising on the quality of its people.
Sources of Applicants. Askari bank is well known of being conservative and
this can be justified by the fact that they try their best to fill in any vacancies
that crop up by first scanning their current employees for the required
qualifications and experience. They prefer to go internally because it is
considerably less costly than external recruiting. A present employee is more
likely to stay at Askari Bank than an external candidate. The people already
working for Askari Bank are well aware of its culture and employee
demands and thus provide a better understanding for their work. The
organizational policy of promoting from within enhances the employees
morale, organizational commitment and job satisfaction.
External Recruiting Channels.
At Askari Bank, external recruiting is the
last option. In case a need arises for external recruitment they meet it discreetly.
When enquired on this issue, the HRD said that they do not prefer external
recruitment because it may have a negative impact on the workgroup cohesion
and morale. Askari Bank uses the following channels for external recruitment;
Referrals.
At Askari Bank, referrals act as an effective
recruitment tool. Referrals are most helpful in the cases of highly
specialized jobs. Employees while recommending applicants place
their own reputation at stake; therefore, they are usually careful to
recommend only qualified applicants. Referrals result in maintaining
consistency in the workforce as the people referring their friends
would be well aware of the company culture and environment and
would never suggest a person they know isnt capable.
Walk-Ins.
Other common and effective methods of external
recruitment are walk-ins and write-ins. These methods are quite
informal and provide the applicant an opportunity to sell

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himself/herself to the organization. This method is appreciated at


Askari Bank because it also affords them the chance to hire fresh,
vigilant, determined and confident workforce for entry-level jobs.
Management Trainees Officers (MTOs).
Another channel of
external recruitment is MTOs. These training facilitate market
exposure for fresh graduates. Askari bank provides these recruits with
an extensive learning program where they are taught how to deal in
the corporate world and mould them into its culture. These recruits
are evaluated after their internship period is over and these appraisals
are filed. Whenever external filling is required, these trainees are the
first option to the bank.
SELECTION

After the recruitment, the selection of most reliable and efficient persons is
carried out at Askari Bank by HRD. The sequence of the selection process is as
follows: Entry Level

Written Test. After recruitment, the fresh candidates have to


take an entry-level test. Test is comprised of, General
Knowledge, English, Math, Accounting and other subjects which
might vary according to the job description. Those who clear the
test are proposed to proceed further for the selection process and
are short-listed.

Initial/HR Interview. The selected candidates are interviewed,


which is conducted by a team of Subject Matter Experts
including HR officials. The candidates are again short listed by
the interviewers.

Final Interview.Now the Vice President - HRD, conducts the


final interview.
Experienced Banker

Initial/Technical Interview. The selected candidates are


interviewed by a team of Subject Matter Experts.
HR Interview. The selected candidates are then interviewed by
a team of HR officials. The candidates are again short listed by
the interviewers.

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Final/Management Interview.
Now the senior management
conducts the final interview.
Orientation. At Askari Bank, the orientation period is two weeks.
During this time the employees are given information about the job,
the people around them, organizational accomplishments and the
future prospects of the company.
Confirmation.
All new hiring remain on probation for six
months. Confirmation as a permanent employee will be based on the
satisfactory replies from at least three personal references including
former employers as shown on the application form. Usually the most
valuable references are from previous employers. Where necessary
personal contact with previous employers is also established.
TRAINING AND DEVELOPMENT

Training. Askari Bank conducts training of the selected candidates, which is


conducted by the Training Wing in coordination with HR and other related
departments. The high leverage training is done in following two main areas: Banking (general banking, credit division and foreign trade etc).
Personality Development. As entry level hiring is done in two
categories (MTO and General Banking/Operations Officers),
therefore, both need to be taught soft skills such as customer services
and communication/interpersonal skills.
Training Needs Assessment Process. To identify that whether the training of an
employees is necessary or not depends on the results of Annual Performance
Report. In APR, the Training Pressure Points are as under:
Poor performance of employees.

Lack of skills in employees.

Employee himself asks for training.

His boss identifies him for training.


Other than APR, following are also some of the valid reasons for conducting the
training program: New hires.
New technology.
Internal growth. (new branch).
New services.

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Employees Development.
Various training methods are in practice at three
training facilities of Askari Bank at Karachi, Lahore and Rawalpindi. Other than
the training of fresh hires, there are courses for the improvement and
development of current employees. Training Need Assessment (TNA) process is
adopted whereby the employees along with their respective supervisor together
decide what training that employee requires in that year. As a matter of fact,
attending minimum 3-4 day training in a calendar year is a mandatory
promotion prerequisite for every employee. Following approaches are followed
by Askari Bank: On job degrees and certifications.
Assessment Centre. Leaderless group discussions are occasionally
held at all branches and departments followed by conferences at
meetings between employees and among executives and board of
directors on regular basis, for the whole day, normally after the
banking hours. During training sessions Role Plays are also given to
employees, which help them to develop themselves.
Performance Appraisals.
The most important source of employee
development which results in the promotions, rightsizing, increase in
salary, perks and benefits is done in Askari Bank with the help of
feedback.
Employee Assistance Program.
All employees at Askari Bank are
given the opportunity to get themselves proper training in their
desired areas, Employees do an informal counselling with their
supervisors for improvement in their work and also in career
development. At Askari Bank every employee is given an opportunity
to do extra degrees and certifications in his field or where he / she is
lacking skills e.g. MBA- Executive and others. Askari Bank has also
more than 50 refresher courses in different area of banking and
management. Employees are fully supported at Askari Bank to take
these courses and degrees.
Sabbaticals for Training.
For refresher courses, which are usually
not longer than 7 to 10 days, sabbaticals are given to the employees.
This motivates the employees to take these courses whenever an
opportunity is there.
Interpersonal relationship development.
Evaluation of Training Program

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The most important way to evaluate the training program is by


checking the linkage with the objective and goals of the bank / high
leverage training.
By measuring the effects on the organization.
By Cost Benefit Analysis / budgeting.
By checking the employee reaction.
Evaluation of Trainees.
At the completion of training session, the
Training & Development Wing evaluates each trainee in following ways: Pre-test Post-test.
Testing the employees during the session.
Askari Bank conducts quizzes and evaluates the written & oral
assignments.
Cross Cultural Training. There is an informal cross-cultural training
of employees in Askari Bank for its branch in Bahrain.
Reward System. Askari Bank has a reward system for the trainees
who perform better during the training session, which are in shape of
appreciation letters and shields etc.

COMPENSATIO
N
Askari Bank offers an attractive perks and privileges package, which is
highly competitive. Some of the features are discussed here: Salary

Basic Salary.

House Allowance, 45% of basic salary.

Utility Allowance, 10% of basic salary.

Medical Allowance, 10% of basic salary.

Fuel Allowance (grade wise ceiling from 60-550 litres).


Benefits

Performance bonus.
Annual increment.
Official vehicle (AVP and above).
Telephone/cellular phone.
Reimbursement of house rent.

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Furniture and fixture allowance.

Club membership (EVP and above).

Transfer grant.

Transfer allowance (for two years after transfer).

House building/car advance on subsidised rates.

Personal finance/credit card on subsidised rates.


End Service Benefits

Gratuity (number of months pay for the number of years


served).
Provident fund (employees subscription + banks matching
grant + profit).
PERFORMANCE MANAGEMENT
SYSTEM

Askari Bank has an effective performance management system. The


system essentially is a combination of Management by Objective (MBO) and
Behaviourally Anchored Rating System (BARS). Employees in coordination
with their supervisors set their own goals. Their performance is evaluated vis-vis their own goals at the end of the year. 80% weighting is given to the goals
and 20% to BARS. An Annual Performance Report (APR) of each employee is
made and feedback is used as a tool for completion of APR. This is the most
important practice as, promotions; increase in salary, training needs of an
employee etc. are all dependent on it. In APR, employees are evaluated on basis
of following skills and are graded on scale of grades starting from A to E, which
have different percentages.
Leadership Qualities.
Marketing Skills.
Productivity.
Initiative.
Communication.
Job Knowledge.
Technical Knowledge.

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INTERVIE
WS
We have gathered the required information through liaison with Zubair
Ahmad Sheikh, Bank Manager Askari Bank Multan Cantt and series of
telephonic interviews with top HR officials of Askari Bank. We have
interviewed Mr. Riaz Khan Bangash, Senior Vice President HR and Mr.
Muhammad Asif, Assistant Vice President / In-charge Recruitment & Selection.
We asked following questions.
What is the HR hierarchy of Askari Bank?
What is the HR planning regarding demand and supply of employees
and forecasting for these practices in Askari Bank?
When do you have need of employee at Askari Bank?
Which factors do you use in employee supply at Askari Bank?
In case of shortage of employee, which method do you use to fulfil
requirements of employee, overtime or hiring?
Which method do you use for recruitment?
What are various steps of selection in Askari Bank?
How much Training and Development contributing in achieving goal?
What is the compensation policy of your bank?
How do you carry out the performance management in Askari Bank?
Which external recruiting channels are being used in Askari Bank?
In which areas is the training most important?
Do training methods need assessment process?
Give the detailed information of HR policies in Askari Bank?
What jobs do you actively recruit for?
What Training & Development opportunities are available at Askari?
How is the working environment at Askari Bank?
CONCLUSI
ON
Askari Bank is a role model for progress in our country. It has proven
over the year that with dedicated hard work, phenomenal progress can be made
even with totally domestic talent and resources. It is successfully growing in the

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highly competitive banking sectors in the presence of many established local


and foreign banks.