Submitted by: ZEESHAN ALI MBA-022(HRM)

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

Examiner 1: Name: ____________________ Signature: ______________

Examiner 2: Name: ____________________ Signature: ______________

Examiner 3: Name: ____________________ Signature: ______________

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

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


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

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I am very thankful to the management of the Allied Bank Limited for giving me permission to start internship in their esteemed organization.

I am thankful to all of the officers and staff of the Allied Bank Limited, GT Road Branch Peshawar to provide me a congenial work environment and have better cooperation and coordination with me and the way in which they interact with me is highly commendable and worthy to be praised.

I am also thankful to the people who assisted me in finally preparing this report and sharing of information necessary to complete this report. The environment in which I completed my internship was highly cooperative, friendly and helpful in accumulation of immense knowledge and experience.

I hope the knowledge and experience which I gained from this environment would certainly be helpful in my practical life after completion of my MBA degree.

Zeeshan Ali .

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

Table Of Contents 1. Objectives of studying Allied Bank Limited………………………..7 Introduction to the organization…………………………...………..7 1.1 History of ABL………………………………………….……8 1.2 General Information about ABL……………………….…..11 1.3 ABL GT RoadBranch…………………………………… …13 Performance Analysis…………………………………….…..…… .10 Organizational Structure of the HRM department………..……...15 HRM process in the organization………………………….……….16 4.1 HRP and Forecasting………………………………….….…16 4.1.1 HRP process…………………………………..……..16 4.1.2 Forecasting HR requirements………………..……..18 4.1.3 Methods to forecast HR needs………………..…….19 Employee recruitment and selection………………………………..20 5.1 Sources of candidates………………..……………....19 5..1.1 Employment selection process in ABL......20 5.2 Training & Development…………………………………….21 5.2.1 Training Need Assessment…………………..…….....22 5.2.2 Employee Development………………..…………….22 5.3 Performance Management…………………………………...22 5.3.1 Performance standards and expectations…….…….22 5.3.2 How performance reports are written in ABL .……22 5.4 Employee compensation and Benefits………………………23 5.4.1 Types of compensation and benefits…………………23 5.5 Organizational career management………………….……..24 5.5.1 Employee Job Changes………………………………26 5.6 Job changes within the organization………………….……..26 5.6.1 Promotion……………………………………………..27 5.6.2 Transfer……………………………………………….27 5.6.3 Demotion ……………………………………………..28 5.6.4 Separations ……………………………………...……28 Layoff…………………………….……28 Termination……………………….......28 Resignation ……………………….......29 Retirement ……………………………29 SWOT Analysis of the organization…………………………………31 Recommendations …………………………………………..………..40 Conclusions ………………………………………………………...…43 References & Sources used………………………………………...…44

2. 3. 4.


6. 7. 8. 9.

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INTRODUCTION TO THE REPORT I have studied 20 different business related courses in the MBA program launched by the Peshawar. The utility of these courses is fruitless unless I do practical work in any organization so as to coincide the theoretical ideas with the practical implementation of these theories and ideas. This degree of MBA gets a competitive strength with the practical work and experience in any renowned organization especially in the commercial sector. As a manager I have to do practical work and face diverse and unique challenges in future field after getting formal MBA degree so this internship provides a key step to start for my practical experience.

OBJECTIVES OF STUDY The practical work and experience leads to improvement of the inner capabilities of any MBA student which are likely to be implemented in the competitive business environment in near future. This 8 week practical work/ internship sharpens the inner capacities of an MBA student like me and is the first step to introduction of any business environment after passing out of the university.

This internship provided me a training environment to sharpen communicational, technical, financial and personal skills and also to apply the theoretical concepts to practical environment.

 To polish the hidden skills efficiently.  To analyze the different sections of ABL.  Through the efferent work taking and employment opportunity in ABL

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2.HISTORY OF THE ALLIED BANK LIMITED Allied Bank Limited (ABL) 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 Bank’s 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 780 online branches in Pakistan and offers various technology-based products and services to its diverse clientele. In order to extreme line the banking organization and techniques, it was agreed that commercial interest of the time needed a bank with facilities of growth and transfer, but that it should not be a bank run by a private individuals. Banking in its modern form and structure starts in Britain when many of Lombardy merchants came to England and settled in the part city of London now called Lombard Street. They were so resourceful that even the king s had to depend on them. 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.

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At the time, the Bank’s 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.

WORK SCOPE The internship period was of six weeks and this period was not sufficient for collecting the data understanding and analyzing the large organization like ABL. Most of the repot is result of primary data and least is based on the secondary data. doing internship in ABL was a great experience in terms of learning how to work in organization and how to meet different people in the organizational structure and also observed what had learnt from the text books during the study period.

RESEARCH METHODOLOGY The methodology for the collection of data is mostly based on primary data. ,i.e observation as well as informal interviews and discussions with the staff of bank and it least depend on secondary data sources that is print and electronic media like books annual report of the bank.

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Chapter2: REVIEW OF ALLIED BANK VISION To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers. 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 To provide a challenging work environment, and reward dedicated team To play a proactive role in contributing towards the society

all stakeholders members

OBJECTIVES OF ABL: Objective is the mean toward which an activity is aimed. all the activities of an organization are due to its objectives and goals and it is for the attainment of these objectives that various strategies, products and services are devised.

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

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

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

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

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

organization’s strategic plans.

scope of activity. Job Analysis, Job Description & Job Specifications are the terms which are widely used while the process of the Human Resource Planning. The specific definitions of these terms are as under: Page 16

JOB ANALYSIS Job Analysis is the process of obtaining information about jobs, including the tasks to be done on the job as well as the personal characteristics necessary to do the tasks. It is the assessment that defines jobs and the behaviors necessary to perform them. JOB DESCRIPTION Job Description is a written summary of task requirements for a particular job. Every type of job has a variable job description. In other words a job description is the written statement of what a jobholder does, how it is done and why it is done. JOB SPECIFICATION It is a list of minimum skills, knowledge and abilities (qualification & experience) a person must have to fill a specific job. Every job has a unique job specification. Or we may say that the job description is the statement of minimum qualification that a person must possess to perform a given job successfully. Human Resource Planning can be condensed into two steps: • • Assessing current human resources, and Assessing future human resource needs and developing a

program to meet those future needs. HUMAN RESOURCE PLANNING IN ALLIED BANK LIMITED In ABL the human resource planning is conducted by the ABL HR Department which analyzes every job, then defines its description, and forecast its specifications for future hiring and further process. Page 17

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

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

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Chapter5: EMPLOYMENT SELECTION PROCESS IN ALLIED BANK LIMITED ABL has remained active in its efforts to attract the best of the industry talent by offering market based compensation and develop the skill set of existing personnel. During the last two years around 800 MTOs* in two separate batches have been hired, while the hiring of another batch of around 250 MTOs* is in process. In the ABL the employment selection process: is as under • The first step towards employment selection process is to conduct

Human Resource Planning. It is basically a strategic analysis of the present availability and future requirements of the candidates in the organization. • The process starts from inviting application from fresh MBA/M.Coms

from business schools of repute as Management Trainee Officers (MTOs). The selection criterion is purely based on meritocracy with equal opportunity for all. • Under a specified time period the organization screens the applications

and rejects the unsuitable candidates. The candidates meeting the benchmark are short listed and issued call letters for test. • The candidates passing a written test prepared by Institute of Bankers

are called for interviews. • The interview is usually conducted by the Selection Penal comprising

the top and middle level management who judges the suitability of the candidate for the job. The committee has one Chairman assisted by 2-3 members and co-opted members from different functional areas of the organization.

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The person declared successful is then issued offer letter containing

terms and conditions for his employment. The candidate after accepting the terms and conditions laid down in the offer letter join the organization and submits his joining report. • There is a formal orientation program organized for the new comers just as to give brief introduction about the organization and the employees therein to the newly hired employees. This program leads to basic awareness of the environment of the organization. • After orientation, newly hired employees are offered certain types of

work related training so as to acquaint them about the processes and procedures adopted in the organization. Training follow up is also done through tests and interviews of the employees imparted the training. • After successful completion of the training, he is placed and posted to

work in the functional area of the organization where his services are needed. TRAINING IN ALLIED BANK LIMITED A separate Human Resource Development (HRD) section is formulated at the ABL. The HRD established The Management Development Centers (MDCs), various training courses have been arranged in these MDCs where around 5,000 employees participated as part of career planning and development policy. The Bank has also nominated 1100 employees on various courses held within Pakistan and 76 of employees were sent abroad to attend the courses and seminars during 2009. The Bank, during the year 2009, has incurred Rs. 57.8 million on training of employees as compared to Rs. 58.4 million spent in the previous year.

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

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continued in the future through significant investments in human resources, technology and training. ABL pursues the strategy of having a mixture of youth and experience by investing in best of industry talent and inducting young talent. Competency based recruitment coupled with market based compensation has enabled the bank to attract the best of industry talent. HOW PERFORMANCE REPORTS ARE WRITTEN IN ALLIED BANK LIMITED To promote employee engagement and satisfaction, a performance evaluation system is in place in ABL whereby ‘pay to performance criteria’ inculcates the motivation amongst the employees to achieve the goals/targets set for them. In ABL performance is appraised on annual basis by documenting Annual Appraising Report of each employee. The Branch Manager measures the performance of each individual candidate and prepares a Performance Evaluation Report (PER). Then these reports are sent to Regional Office which forwards it to Head Office. Sufficient errors exist in the system of measuring the performance of the candidates which ultimately affects the future service of the workers.

TYPES OF COMPENSATION & BENEFITS IN THE ALLIED BANK LIMITED There are two types of organizations i.e. one is public sector organizations functioning under the administrative control of the Government of Pakistan and the other one are called private sector organization, having their own administrative control at the hands of the investor or the capitalists or entrepreneurs. ABL is a private sector organization thus it is giving a handsome compensation to its employees on the basis of their rank and seniority. The compensation is divided in two main components. Page 23

• •

Financial Compensation Non Financial Compensation The Financial Compensation or benefits include Base Pay, House Rent Allowance, Utility Allowance, Medical Allowance etc. Employees are often rewarded with Annual Bonus 2 times a year and an additional bonus for extra ordinary performance is also awarded to any staff member. The proposal for bonus is recommended by the Branch Manager and approved by the Regional Office. The non-financial benefits (Benefits & Perquisites) admissible to the employees working at the ABL vary in nature. These rewards can be Performance Certificates, Shields, and Employee of the Month Award etc.

ORGANIZATIONAL CAREER MANAGEMENT The term career has many meanings. In popular use, it can mean advancement in someone sequence of jobs. Career is basically a sequence of positions held by a person during his or her lifetime. Career Development is also a way for organizations to attract and retain highly talented people. Widespread organizational changes have led to uncertainty about the concept of a traditional organizational career. Downsizing, restructuring and other organizational adjustments have brought a significant conclusion about career development. Employees must be prepared to do what is necessary to advance career and take responsibility for designing, guiding and developing their own career. The idea of increased personal responsibility for one’s career has been described as a boundary less career in which individuals rather than organizations define career progression, organizational loyalty, important skills, and marketplace value. The challenge for individuals is that there are no norms and few rules to guide Page 24

them in these new circumstances. Instead, individuals assume primary responsibility for career planning, career goal setting, education and training. One of the first career decisions one has to make is career choice. The optimum career choice is one that offers the best match between what one want out of life and interests, abilities and market opportunities. Good career choice outcomes should result in a series of positions that give an opportunity to be a good performer, make one want to maintain his/her commitment to career, lead to highly satisfactory work, and give the proper balance between work and personal life. Here are some suggestions for a successful management career: • • • • • • • • • • Develop a network Continue upgrading your skills Consider lateral career moves Stay mobile/Support your boss Find a mentor/Don’t stay too long in your first job Stay visible/Gain control of organizational resources Learn the power structure Present the right image Do good work Select your first job judiciously

The career is not something that should be left to chance; instead, in the evolving world of work it should be shaped and managed more by the individual than by the organization. Traditionally, career management and success have been defined in terms of occupational advancement, which is clear and easy to measure. • • knowledge with others. Organizations should actively promote such relationships and provide

sufficient time for mentors and new hires to meet on a regularly scheduled basis. The role of mentor is to provide a candid feedback to new comers on how they are being Page 25

perceived by others and to serve as a confidential sounding board for dealing with work-related problems. • Challenging early careers/initial job assignments are an antidote to career obsolescence. Employees should be encouraged to aim high because it lead to higher performance. Parents, teachers, employers and friends should therefore, avoid discouraging so-called impractical aspirations. • Another thing is mid career management of the employees in their

middle ages while they are on job to develop younger employees. The Mid-Career employees keep themselves fresh, energetic and up to date while the younger employees learn to see the big pictures and to profit from the experience of the older employees. Technically dismissals also fall into the last category. These are all the movements or job changes within the organizations related with the workers or employees working in the organizations. The career is the sequence of positions occupied by a person during the course of a lifetime. These positions may be up, down, over and out. These positions have a greater importance in the life span of the individual employees due to the reason that the employees get compensation depending upon the nature of job changes. JOB CHANGES WITHIN THE ORGANIZATION Not every incumbent/employee enjoys a similar position in any organization. He has to deal with unique variations and challenges over his/her job at his career. Some time these changes of jobs within the organization are very much constructive to the employees and some time these changes are very much discouraging for the employees. From the organizational point of view, there are four broader types of internal moves: up, down, over and out. These moves corresponds to promotion (up), demotions (down), transfers and relocations (over) and layoffs, retirement and resignations (out). Dismissals are sometime also fall into the last category.

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

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

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

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

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Chapter6: SWOT ANALYSIS OF THE ALLIED BANK LIMITED SWOT analysis is a process to identify where organizations are strong and where vulnerable, where it should defend and where to attack. It tells the strengths, weaknesses, the opportunities which prevail in the market and the threats which an organization may face from its competitors and other from other potential factors. This analysis can be performed on a product, on a service, a company or even on an individual. Here we apply this very useful technique to identify the strengths, weaknesses, opportunities and threats of Allied Bank Limited. A) STRENGTHS Strengths mean the positive things that organization performs well and the unique resources the organization has. Strengths relates to the internal environment of the organization. Mainly the organization has four types of resources: • • • • Human Resources Informational Resources Physical Resources Financial Resources.

Human resources includes the technical and non-technical staff and workers in the organization, Informational resources play a very vital role in decision making process for the management, Physical resources means machines, technology and other physical assets of the organization, Financial resources means the finances occupied/carried by the organization in order to pay the staff and to run Page 31

the daily process of the organization. The strengths noticed by me during my stay at ABL as an internee is as under:

Customer Satisfaction The motto of ABL is to “deliver value to the people we serve” and keeping in vies this motto the Bank aim is to provide a host of products and services to its customers; establish a strong consumer banking business. 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. Brand Image Brand image of ABL is recognized nationwide as provider of best quality banking services to its customers. With Cash Deposit facility for immediate credit to a remote branch, online banking, debit & credit card facility, easy fund transfers etc the ABL has build its brand image that is a sign of quality. Reach/Availability 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 has the largest network of over 780 online branches in Pakistan and offers various technology-based products and services to its diverse clientele. Online Banking Online Banking facilities are available to customers maintaining accounts at all online branches across the country. It helps the speedy services giving to the customers. There is also help in checking the balances and daily transactions just at one key press.

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The Bank also provides the facility of ATM to its customers. Additionally, account holders of all online branches can obtain the Allied Cash+Shop Visa Debit Card for use at ATMs.

Strong Financial Position It is evident from the financial statements of the bank, the financial position of the bank is very sound and its profitability is in increasing. The Earning per share is 10.02 m (ABL Annual Report 2009), which is a very positive sign. Wide Area of Services The bank provides a wide area of services. It offers number of services relating to the banking system like Depositing Cash, Locker Availability, Utility Bills, and Traffic Challan, Fees received of AIOU, Sales Tax, Withholding Tax, Property Tax, and various loan schemes. Human Resource Practices The Bank has developed strong human resource practices. Each employee has his/her own job description and he has to do according to the duties and functions specified in that job description. Skilled and trained workers are available in the organization. There is a formal orientation process for the new comers in the organization. Employees use latest information technology in delivery of the services to the end users. Better career planning is offered by ABL. HR cost increased by 25.1% to Rs. 5,660 million during 2009 as against Rs. 4,523 million during the previous year. Statement of Ethics and Business Practices

The Bank has adopted a “Statement of Ethics & Business Practices”, which has been signed by all the directors and employees. Page 33

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

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medical facilities for the employees. Greater benefits and perquisites are provided to the top level of management. Organizational Environment ABL provides better working environment and better working conditions for the employees. Better Communication channels are adopted in the Bank like telephone, faxes, e-mail and the internet. There is greater Quality of Work Life in the organization. Decision making at different level is done by a defined manner. There is delegation of powers and decentralization of powers amongst the lower and middle level of management. Employees of the ABL works in groups and teams, formal groups are made in the Bank such as Finance Group, Information Group, MIS group, Accounts Group, Administration group etc. Workers are more motivated and committed towards duties assigned to them. Employee Training & Development Sufficient resources (financial and physical) are allocated for the training of the employees. MDCs are established by the bank where around 5,000 employees participated in courses of career planning and development. The Bank has also nominated 1,100 employees on various courses held within Pakistan and 76 of employees were sent abroad to attend the courses and seminars during 2009. The Bank, during the year 2009 has incurred Rs. 57.8million on training of employees. B) WEAKNESSES The weaknesses are the negative things in the internal environment of the organization. It means that organization is lacking certain resources which it has to have. The weaknesses of the ABL which I noted down during my stay there as internee is as under: Lack of Communication between Employees Page 35

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

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

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

D) THREATS Threats are the negative things in the external environment of the organization. Threats are always incontrollable as they exist outside the environment of the organization. The threats which I noted in the ABL are as under: Page 38

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

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Chapter7: RECOMMENDATIONS The following are the recommendations made for the ABL to overcome its restraints. • Strategic Planning of the organization must be given adequate time and

expertise so as to create vision, mission, objectives and strategies in a very effective and efficient manner. • • • Unfair influences and interferences in the recruitment and selection Performance appraisal process must be ongoing and result oriented. Need assessment for training purpose must be result oriented as the process must be ignored and rejected.

whole structure of training process build on the basis of the assessment of needs at different levels of the organization. • • • • • • • • • There must be proper ethical training for the raters. Staff salaries, benefits, perquisites must be enhanced in accordance The whole process of performance appraisal needs to be rationalized Grievances of the employees must be given proper attention and it Information technologies provided to the organization must be used for Interviewing skills of the raters must be improved for getting 360 degree performance appraisal system must be introduced in the Recreational and creative activities in the organization must be Recruitment process must be streamlined and got transparent so as to

with the inflation ratio. and streamlined. must be redressed on timely basis. creative purposes; its negative use must be ceased. maximum results from the performance appraisal methods. organizations where still conventional system prevails. improved and enhanced. attract and retain the competent and able candidates. Page 40

• • • • • workforce. • • • • •

Rules and procedures must be got simplified and there must be There must be equal and justified distribution of the rewards and Equal employment opportunities must be offered to all irrespective of Discrimination on gender basis must be discouraged. There must be training for managers on handling of diverse nature of Effective and efficient service delivery must be adopted. Redundancy of working procedures must be handled proactively. There is a greater need for cooperation and coordination among people Security situation of the employees must be given adequate attention. Result oriented training must be imparted to the employees.

equality in them at every level of the organization. compensation in the organization. the differences on the basis of gender and cultures.

at different levels of the organization.

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CONCLUSIONS The essence behind formulation of this report and completion of eight week practical internship in a competitive business organization is to get basic practical experience in the organizations which ultimately help the MBA degree holders to easily digest in the business organizations after completion of their MBA degrees. This report covers every aspect of the Human Resource Management functions in any contemporary business environment. It includes theoretical knowledge and practical experience about how to recruit and select a new candidate, how to orient and train them, how his compensation will be fixed and how to retain and motivate them by offering a handsome compensation package so that he can work with greater devotion and motivation. This report also has information about how to handle the diverse workforce in today businesses, how to have their effective career planning and how the compensation is linked to the performance. As in the today’s businesses compensation is directly related to the performance and work done by the workers/employees. This report also have information how a manager handle a group of people and workers in the form of a union. How a union members and workers belonging to a particular union can be negotiated. How their demands are protected and fulfilled. How a manager respond to a diverse situation of strikes/lockout after failure of collective bargaining or dialogues between union and management.

This report also has greater information about the organization. Its vision, mission, objectives, goals and targets, programs and projects initiated by the organization, its staff strength, organizational structure, organizational structure of the Human Resource Management department etc. Also the report shows that how human resource management functions are being implemented in the organization. Allied Bank Limited is an accomplished Organization and one can plan to join it for his/her long-term career. Overall working environment is affluent. Management of the bank cares a lot for its employees and considers them as an asset for the bank. Behavior of the Senior Executives of the bank is very cultured and they Page 42

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

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• •

Annual Report 2011 Bank Limited. • • • MANAGEMENT, Eighth Edition by Stephen Robbins & Mary Coulter. MANAGING HUMAN RESOURCES, Fifth Edition by Wayne F. Cascio. ORGANIZATIONAL BEHAVIOR, Twelfth Edition by Stephen P. Robbins & Timothy A. Judge.


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