North South University

Course: MGT 210

Section: 10

Submitted by:
Mir Tonmoy Rahman (1220013030)
Md. Rakibul Hasan Shagor (1220038030)
Ashfaq Bhuiyain (1130979030)
Eleyas Mahbub Rifat (1130681030)

Submitted to:
Noor e Hasnin (Neh)
Lecturer
North South University

Submission Date: 25th November,2012.

HRM Report: Bank
Alfalah Limited

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 Acknowledgement

All praises are for Allah Almighty that has bestowed upon human being the crown of creation and has
endowed him with knowledge and wisdom. I am very thank full to Allah Almighty who gave me the
courage to complete this complex task and to my ever caring and loving parents whose prayers helped
me to reach this stage of my life.

I have taken efforts in this project. However, it would not have been possible without the kind support
and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to our elders for their guidance and constant supervision as well as for providing
necessary information regarding the project & also for their support in completing the project.

My thanks and appreciations also go to my group members in developing the project and people who
have willingly helped me out with their abilities.

Thank you

Eleyas Mahbub Rifat

Ashfaq Bhuiyain
Mir Tonmoy Rahman
Md. Rakibul Hasan Shagor

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 TABLE OF CONTENTS

I. Introduction …………………………………………………………………… 04
II. Scopes and limitations of this Report………………………………………….04

III. Litarature Review……………………………………………………………....04

a. Company Information

b. Company Vision & Mission

c. Organization Chart

IV. Recruitment…………………………………………………………………….06

a. Major Sources of job candidates of the Organizatiom

V. Decruitment option……………………………………………………………..08

VI. Selection and Placement………………………………………………………..08

a. Types of Selection Devices used by the Organization

b. Advantages & Disadvantages

VII. Orientation,Training & Development………………………………………...10

a. Orientation Programs

b. Types of Training

c. Employee Training Methods

VIII. Performance Appraisals………………………………………………………..13

a. Performance appraisal Methods

b. Advantages & Disadvantages of the Appraisal Method

IX. Types of Compensation………………………………………………………...15

X. Conclusion……………………………………………………………………....18

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Introduction

Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under the
Companies Ordinance 1984. Its banking operations commenced from November 1st ,1997. The bank is
engaged in commercial banking and related services as defined in the Banking companies ordinance
1962. The Bank is currently operating through 45 branches in 21 cities, with the registered office at
B.A.Building, I.I. Chundrigar, Karachi.

Since, its inception as the new identity of H.C.E.B after the privatization in 1997, the management of
the bank has implemented strategies and policies to carve a distinct position for the bank in the market
place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out
by its board of management, the Bank has invested in revolutionary technology to have an extensive
range of products and services. This facilitates their commitment to a culture of innovation and seeks
out synergies with clients and service providers to ensure uninterrupted services to its customers.

Scopes & Limitations of this Report

Banking has a very broad scope. In only six weeks of internship, it is very difficult

tou n d e r s t a n d e a c h a n d e v e r y a s p e c t o f b a n k . D u e t o t h e b a r r i e r s o f l i m i t e d t i m e
a n d space, the scope of work is usually confined. However this study of Bank Alfalah will help
themanagement to identify their weaknesses and threats and over come them by usingtheir
strengths and capitalizing on the opportunities. This internship report will be source of
financial data for all those who are interested in financial statement analysisof Bank alfalah.

As mentioned earlier, three weeks of time is  very limited for a complete observation of a n
institution like Bank Alfalah.Moreover, some of the data was confidential and
was notmade available to me. Sometimes due to the busy schedule of the bank,
c o m p l e t e information regarding different activities was not provided in time.

Litarature review

Bank Alfalah perceived the requirements of customers and matches them with quality products and
service solutions. During the past five years, bank has emerged as one of the foremost financial
institution in the region endeavoring to meet the needs of tomorrow as well as today. To continually
upgrade the quality of service to the customers, training of team members in all the integral aspects of
banking, customer service and IT was specially focused.

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The portfolio concentrates on all aspects of conventional banking as well as the financial needs of
corporate sector. Dynamic and high value product includes Car Financing, Home Financing, Rupee
Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumer Durables. In
addition to this, Islamic Banking Division is a recent initiative, which operates as

separate branch. It offers Shariah Compliant products through a network of five branches, which will
increase to 50 by the year 2007. The bank is committed to combine all it s energies and resources to
bring high value, security and satisfaction to its customers, employees and shareholder.

The Bank has invested in revolutionary technology to have an extensive range of products and services.
This facilitates commitment to a culture of innovation and seeks out synergies with client and service
providers to ensure uninterrupted services to it customers.

 VISION

“To be the premier organizations operating locally and internationally that provided the complete
range of financial services to all segments under one roof”

 MISSION

“To develop and deliver the most innovative products, manage customers experience, deliver quality
service that contributes to brand strength, establishes a competitive advantage and enhances
profitability,thus providing value to the stakeholders of the bank.

 ORGANIZATION CHART

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RECRUITMENT

“The development of a pool of applicants for jobs in the organization”

 Sources Of Job Recruitments:

Following are the some sources of Job Recruitment in Bank Alfalah:

 By Universities
 By Website
 By Coaching
 By Newspapers
 Recruitment Process:

Following are the recruitment processes in Bank Alfalah:

1.) Assess need (strategic planning and tactical planning)

2.) Create a pool of candidates:

3.) Screen out candidates:

4.) Make selection

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5.) Evaluate recruitment process:

1.) Assess need (strategic planning and tactical planning)

There is no fixed quota of number of employees to be recruited, it depends on need and the strategic
(organizational) and tactical (branch level) requirements.

2.) Create a pool of candidates:

The prospect candidates are attracted through advertisement in the newspapers, on the website online
and also the walk in.

3.) Screen out candidates:

Through interviews and tests they screen out the less attractive candidates.

4.) Make selection:

After further interviews and other processes the final candidate is selected. Questions in an interview
are made by doing proper job analysis of the job. That includes identifying the job duties and
requirements.

5.) Evaluate recruitment process:

Evaluate effectiveness of recruitment by comparing the results to expected results.

TYPES OF RECRUITMENT

There are two types of recruitment in Bank Alfalah:

1. Internal
2. External

1. Internal:

“Includes recruiting of already existing employees for new jobs within the organization”

2. External:

“Includes bringing “new blood” in an organization. Recruiting people who are new”

INTERNAL RECRUITMENT IN BANK ALFALAH

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Bank Alfalah normally

• Less emphasis on Internal Recruitment

• Existing employees can respond to new job offers as externals

• Performance appraisals

EXTERNAL RECRUITMENT IN BANK ALFALAH

In Bank Alfalah external recruitment is on

• Need basis

• No yearly or monthly recruitments

• Every branch has it’s own HR department

• Head office sanctions recruitment for new employees

• Adds in leading newspapers (Dawn, Jang)

• College Recruitment (under planning)

• Online application forms

• Short listing

• Interviews

• Decisions made through head office

• No help from recruiting agencies

Decruitment option

“Techniques for reducing the labor supply within an organization”. Decruitment might be motivated
because of disciplinary, economic conditions, new technology etc. Following are the different methods
of Decruitment

Firing.

 Layoffs.
 Attrition.

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  Transfers.
 Reduced Workweeks.
 Early Retirements
 Job Sharing.

Selection & Placement

Selection procedure includes following steps

Preliminary Reception

Here first they welcome application forms from candidates through net because on their web site well
designed form is available. It includes all information which is required in CV and resume. From this
form they short list candidates those who are on their criteria.

Tests

Tests are conducted in main branch. Pen and paper test they use as a testing tool. There is condition of
50% marks for further proceeds.

Interviews

Interviews are also held in main branch. It is you can say unstructured. They usually ask simple
questions about their hobbies. On that time they are more concern about candidate’s personality,
grooming and confidence.

Medical Evaluation

No medical evaluation.

Supervisory interview

No supervisor‘s interview. Because after hiring there is training session that enables all employee to
work as per requirements.

Realistic job preview

No RJP, before hiring. However candidates are aware of atmosphere in Banks and Alfalah is
maintaining very good working environment for their employees.

Hiring decision

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Those who perform well in test and in interviews and are on criteria are hired. Finally they send
appointment letter to selected candidates.

Placement

A promotion is an upward advancement in the organization to a position, which commands higher

opportunities, greater authority, better service conditions and a higher rank. All the promotions in bank
Alfalah are made on the basis of merit of each case, and not by the virtue of seniority alone.

Transfer to different jobs either to fill definite vacancies or to perform assignments to develop
individual are made. The Head office in accordance with the promotion makes promotion and transfer
to all categories and grades and transfer polices of bank Alfalah. The Administration department helps
in co-ordination these activities of transfer and promotions.

Advantages & Disadvantages

A human resources department is in charge of the perpetual recruiting of new employees, and has a
significant hand in the candidate selection process. But there are several challenges as well as benefits
that can be encountered while going through the process of finding new corporate candidates. All
business professionals need to understand the advantages and disadvantages of selection and
recruitment in order to contribute to an effective employment candidate search.

Managerial Involvement

A comprehensive selection and recruiting policy allows all of the departmental managers to get
involved in developing the guidelines for selecting new candidates. Each departmental manager
understands the current and future needs of their departments, and by getting involved in the recruiting
process, the departmental managers can help create relevant job descriptions. Managers can also assist
in determining experience and educational needs for each new position to make sure that appropriate
candidates are recruited

Company Growth

Proactive selection and recruitment involves understanding the intricacies of future personnel
requirements, and then developing job listings that bring in candidates that the company will need
for company growth. In conjunction with searching for qualified candidates to fill existing positions,
the human resources group also needs to become familiar with company growth plans in order to
determine what kinds of positions will be needed. This also includes international expansion, and
the need to fill positions in new business ventures that the company has never needed before. All of
this proactive work creates a stable foundation for supplying talent during the growth phases of the
company.

Enticement

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A constant disadvantage to the process of selection and recruiting is trying to keep up with the
enticements being offered by industry competitors. Elements such as higher pay, more comprehensive
health benefits and a strong retirement package become expensive. But if your company wants to be
able to attract the best new talent, then it is necessary to keep up with the competition and try to exceed
candidate's expectations.

Location

Location can be a disadvantage to a company in several ways. If the company chose its current location
because of the availability of a reliable workforce under the old business model, then that workforce
may no longer be relevant under a new business model. A blue collar workforce will not help a
company fulfill white collar jobs such as computer engineering or customer service associates for an
insurance company. Location can be a liability when the available workforce dries up due to a change
in the local economy and the workforce moves to other areas to find work. These factors and more
combine to make a company's location a liability when recruiting and selecting employment candidates.

Orientation,Training & Development

ORIENTATION

The orientation program of Bank Alfalah contains:

 Introductory Lecture
 Printed “ Employee Hand book” in Bank Alfalah

 Time Duration
 Familiarize new employees with their new jobs, work units and organization in general.

TRAINING

“The process of teaching new employee the basic skills they need to perform their jobs.”

Basic Steps in Training:

Following are the basic steps in training employees in Bank Alfalah:

• Need Analysis

• Instructional Design

• Validation

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• Implementation

• Evaluation and follow up

- Training Mangers and faculty is hired for training purposes.

- Training Mangers are in their respective head offices

The Training Centers Of Bank Alfalah:

Bank Alfalah’s training centers are in Karachi & Lahore. These training centers are responsible for
providing multi-level high quality training programs in following areas:

- Consumer banking operations

- Credit administration/documentation

- Trade finance operations 

- Marketing & selling skills 
- Customer service skills 
- Performance appraisal skills 
- Time management & personal effectiveness

TWO SCENARIOS OF TRAINING

Training Calendar:

In Bank Alfalah, Head office devises a calendar according to which they train their employees

Need Basis:

In Bank Alfalah, Branch Manger realizes that specific department lacks in some skill.

TWO TYPES OF TRAINING

On The Job Training:

“Training a person to learn a job while working on it”

Off The Job Training:

“Training an employee to learn a job while providing him a class room environment”

ON THE JOB TRAINING

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“On The Job Training” in Bank Alfalah is done by

 Making teams of new employees with a few old specialized Employees.

 Contribution to overall productivity.
 Lower cost
 Lower Time

Management Training Officers (MTO) Training Program:

In Bank Alfalah, MTO’s training program is 3 months On the Job Training & 9 months Off the Job
Training.

OFF THE JOB TRAINING

In Bank Alfalah, Off the Job Training is done by

 In-house training ,done at least once a year

 Employees from all over Pakistan attend seminars and courses.
 Employees are tested after the completion of the course
 Specialist trainers are hired
 Provide a proper learning environment to the employees
 Professional faculty is hired
 Increases employee loyalty
 Labor productivity is zero

 Cost is high
 Time is consumed

Training & Development:

In Bank Alfalah, employee is trained & developed in following different operations:

 Consumer Banking Operations

 Credit Marketing & Credit Proposals
 Credit Administration/Documentation
 Trade Finance Operations
 Marketing & Selling Skills
 Customer Services Skills
 Performance Appraisal Skills (Self Appraisal)
 Time Management & Personal Effectiveness

Employee Training Methods

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Bank Alfalah uses both on the job and off the job training methods in training depending upon the
length of the batch to be trained. If the batch size is very large then they divide it into two groups; one
is send to the training centre while other is send to the on the job training in branches. After certain time
period their position will change.

Evaluating Training

In this stage trainees are asked to provide feedback of the training program through questionnaire,
evaluation form and pen & paper test. Evaluation include

i. How did the trainees find the training program whether the like or dislike it?

ii. What new concepts they learned from the training program?

iii. Whether the objectives of training achieved for which the training was conducted. For example
whether there is any effect on employ performance, change in their attitude.

Performance appraisals

Bank Alfalah’s performance appraisal system is based on a combination of ‘MBO’ and ‘Enabling
Traits’ approaches, under which 60% weightage is given to performance goals discussed and laid out in

the beginning of the year. Another 40% weightage is assigned to enabling personality factors, which are
clarified to all employs by their supervising office at the start of each year.

The system and process flow of the appraisal process is modified, improved and upgraded from time to
time in line with the Bank’s requirements, as well as with industry practices. HRD notifies all units of
the Bank of the PA system and procedure currently in use. Units are also notified deadlines for goal
setting, form filling, monitoring and final appraisals.

Salary increases and adjustments are based on performance of employees during a calendar year and
are finalized during the first quarter of the new year. Grade promotions, on the other hand are based on

the availability of higher positions, employee’s ability to fill those positions and sustained high
performance during the last few years, and are finalize during the second quarter of each year.

“Evaluating an employee’s current and / or past performance relative to his or her performance
standards”

The performances of employees are appraised yearly at Alfalah Bank. HR head said that

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“Performance appraisal helps us in estimating employee’s current performance, setting work standards
and then providing feedback to employees with the aim of eliminating performance deficiencies”.

The Appraisal Methods at Bank Alfalah are

1. Self Appraisal Method

· Ratting

· Evaluation

1. Problems During Appraisal

· Unfair Assessment (Bias)

BEHAVIOR APPRAISAL

In this service oriented industry behavior is as important as performance on job. To manage behaviors
and appraise company has devised a managing behavior system to evaluate their core values. Each
employee in such a system is rated against the behavior performance achieved, against the required
benchmark applicable, depending on the Job Grade.

PERFORMANCE STANDARDS AT ALFALAH

Alfalah Bank Has laid down the following Performance Standards:

1-Demonstrates Commitment

2-Aligns Activities

3-Promotes Alfalah Long Term Objectives

Advantages & Disadvantages

1. Improving the performance of the Bank and its staff members

2. Laying a solid foundation for relationships between staff and management

3. Clarifying performance targets for all

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4. Using the process for career planning and professional development of staff

5. Review of salary, assignment and career path

6. Award of bonus(es)

7. Promotion to higher salary ranges and functional responsibilities.

Types Of Compensation

Compensations at Bank Alfalah are establish on the basis of job ratings. All jobs are ranked from top to
bottom, on the bases of compensable factor. Employee with higher rank gets highest pay and
incentives.

Compensation Plans for Employees:

In Bank Alfalah, compensation plan for employees includes:

 Basic Salary
 Bonuses
 Medical Facilities
 Allowances

Incentive Plans:

In Bank Alfalah, incentive are provided to

 Managers and Executives

 Middle and Lower Level Employees

EMPLOYEE BENEFIT & SERVICES

The employee benefits & services provided by Bank Alfalah are

 Health & Life Insurance

 Paid Annual Vacations, Leaves, Holidays

 Health Insurance Of Parents

 Pension & Provident Fund
 Discount On Company Products
 Annual Bonuses
 Educational Plans
 Social Events
 Customized Services

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 Creative, Learning & Healthy Environment

 Highly Qualified, Experienced & Committed Staff

 Profit & Gain Sharing Plans

Financial Benefits:

The financial benefits provided by Bank Alfalah to its employees are

Severance – Pay

Severance Pay is given according to

1. Policy
2. Give Full & Final Settlement
3. Half Salary As A Complementary (Optional)

Supplemental Unemployment Benefits

Supplemental Unemployment Benefits are given

1. During Annual Routine Audits

2. Other Privileges

Insurance Benefits:

Bank Alfalah gives insurance benefits on

 Worker’s Compensation
 Complete Life Insurance
 Hospitalization & Medical Insurance

Other Benefits:

Other benefits provided by Bank Alfalah to its employees are

 Pregnancy Compensation

 2 – Bonuses For Each Employee

 Faster Promotion
 Introduction Of MENTORS
 Bank Alfalah MOHTISIB
 Staff Suggestion Scheme
 Family Community Concept

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 Salary Of Own Choice
 Job Rotation Facility
 Prizes & Gifts
 Refreshment Packages
 Short Courses & Trainings + Training Material
 Traveling & Stay Allowances
 Communication Benefits

Retirement Benefits:

Bank Alfalah gives retirement benefits on the basis of

 Age
 Pension Plans
 Provident Fund Facility
 Early Retirement Window
 No-golden Offerings & Defined Contrib. Plan
 No-social Security & Deferred Profit Sharing

Services Benefits:

Following services benefits are provide by Bank Alfalah to the employees:

 Introduction Of MENTORS (HR – REPRESENTATIVE)

 Counseling Services - Financial, Career, Job-placement, Grievances
 Bank Alfalah Mohtisib

 Lunch & Learn Program

 Employee Transportation
 Educational & Training Subsidies
 Flexible Benefits Programs (Few-limitations)
 No-subsidized Child & Elder Care

CONCLUSION

HRM managers at Bank Alfalah are performing a great job as far it is concerned Motivating them and
looking after them. Along with the other managers and employees. HRM managers are also doing a
great job in achieving company goals and objectives. There is a very calm and friendly atmosphere at
Bank Alfalah because of the HRM department and their policies for keeping their employees happy,
productive and efficient.

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Web Resources

 Bank Alfalah (www.bankalfalah.com)

 Wikipedia (www.wikipedia.com)
 Google (www.Google.com)

Reports & Papers

 Annual Report Bank Alfalah 2011

 Issues in Pakistan’s Economy by S. Akbar Zaidi
 International Finance by Maurice D. Levi
 Bank Alfalah Limited. (2011). Alfalah Mahana Amdan Plus [Brochure].
 Bank Alfalah Limited. (2011). Alfalah Quick Finance [Brochure].
 Bank Alfalah Limited. (2011). Alfalah Milkiat Finance [Brochure].
 Bank Alfalah Limited. (2011). Alfalah Karobar Finance [Brochure].

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