Human Resource is an area, which has proved its worth in the history of business world. The organizations that opt it at very earlier stage and implement innovative and effective techniques get their reward in the form of high performance and marvelous growth. Darwin’s doctrine of ‘survival of the fittest’ is valid in the business world too and the organizations that want to survive in the market have to be fit in each and every respect. Among all the aspect of organizational functions, Human Resource Management is the backbone of all. It serves as the spinal cord of whole system and integrates different functioning efficiently and effectively.
Human Resource Management has lot of functions to do, dealing with the ‘Human’ asset of organization from hiring to firing them. In this process, it performs the functions of human resource planning, recruitment, selection, orientation and training, monitoring, performance appraisal and motivating the employees for the sake of higher performance.
Bank Alfalah Ltd. & Pepsi Co. has a rich history of success and in its success, among other factors; Human Resource Management has a pivotal role. In these organizations, there is a well-integrated, established and innovative human resource system that judges the employees, their potentials and their weaknesses and does corrective actions without any bias, discrimination and without any delay. In these organizations, there are well-organized methods for all of the HRM functions. Through proper planning of HRM, they try to improve their employee’s performance as well as their employee’s job satisfaction level to achieve their objectives.
But, as is normal, there are also some weaknesses in these organizations that should be taken care to get more accurate and perfect results from the HRM system. But, finally, we can conclude that apart from weaknesses the HRM system of Bank Alfalah Ltd. and Pepsi Co. are working marvelously and this can further be enhanced by taking certain steps some of which are given in the end.
Our main focus in this report is on the HR functions and their requirements in both of the organizations. This report has been prepared as the requirements of the course of MBA. We have split this report in various sections and have tried to keep them in an organic sequence. We have tried our best to present this report in concise but comprehensive manner.
Human Resource Management
“Human Resource Management consist those activities designed to provide for and coordinate the Human Resources of an organization “.It can be defined as “all thepractices, systems and procedures implemented to attract, acquire, develop and manage human resources to achieve the goals of an organization.
Human resources of an organization is one of the largest investment. Government reports shows that approximately 65% of national income is used to compensate employees.
Proper management of Human Resources of an organization is very important because People are important assets of an organization. The success of an organization is highly depend on the performance of the people. But the People’s performance depends upon careful attention to them. Therefore, an organization cannot achieve its goals and objectives without proper Human Resource Management.
Human Resource Functions
Tasks and duties performed in both large and small organizations to provide for and coordinate human resources. Human Resource Function encompasses a variety of activities that significantly affect all areas of organization. Human Resource Functions are given below
Ø Human resource planning.
Ø Recruitment/ Decruitment.
Ø Orientation and Training.
Ø Career Development.
Ø Performance management system.
Ø Compensation and Benefits.
Human Resource Planning
Human resource planning is defined as “process of getting the right number of qualified people into the right job at the right time.”
HRP is also define as “the system of matching the supply of people internally (existing employees) and externally (those to be hired or searched for).”
The long term success of any organization ultimately depends on having the right people in the right at the right. Organization objectives and the strategies for achieving those objectives are meaningful only when people with the appropriate talents, skills and desire are available to carry out those strategies.
Types of Planning
There are three types of planning
Ø Human resource planning
Ø Strategic planning
Ø Tactical or Operational planning
Strategic planning is not about how to position products and businesses within an industry. Rather, it is about changing industry rules or creating tomorrow’s industries. The biggest benefit of strategic planning is its emphasis on growth and it encourages managers to look for new opportunities, rather than simply cutting more workers. Strategic planning may result in new business acquisitions, new capital investment or new management approaches. It provides direction and scope to tactical planning.
Tactical or Operational Planning
This aspect of planning addresses issues associated with the growth of current or new operations, as well as with any specific problems of planned growth. Purchasing new or additional office equipment to enhance efficiency (e.g. computer hardware of software).
How HRP Relates to Organizational Planning
Human resource plan must be derived from the long term operational plans of the organization. The success of HRP depends largely how closely the human resource department ca integrate effective people planning with organization’ business planning process. HRP contributes significantly to the strategic management by providing the means to accomplish the outcomes desired from the planning process.
Steps in the HRP Process
HRP consists of four basic steps:
1) Determining Organizational Objectives
Ø Organizational Objectives
Statement of expected results that are designed to give the organization and its members direction and purpose.
Ø Cascade approach
Objectives setting process designed to involve all levels of management in the organizational planning process. It is not a form of top to down planning but the idea here is to involve all levels of management.
2) Determining the Skills and Expertise Required (Demand)
After establishing organizational, divisional, and departmental objectives, operating manager should determine the skills and expertise required to meet their respective objectives.
Method of forecasting HR need
Ø Judgmental Method
ü Managerial estimation
ü Delphi technique
ü Scenario analysis
Ø Mathematical method
ü Statistical method
ü Modeling method
Ø Bench marking
3) Determining Net HR resource
This process involves a thorough analysis of presently employed personnel and a forecast of expected changes.
Ø Skill Inventory
Ø Management Inventory
Ø Anticipating Changes in Personnel
4) Developing Action Plans
Once the net human resource requirements have been determined, managers must develop action plans for achieving the desired results. The following section discusses action that can be taken.
Adding Human Resource
Ø Permanent hiring
Ø Temporary hiring
Reducing Human Resource
ü Earlier retirement
ü Voluntary resignation inducement
Tool and Techniques of HRP
1. Succession Planning
Technique that identifies specific people to fill future openings in key positions throughout the organization. Succession planning almost always involves the use of a replacement chart which shows both the incumbents and potential replacements for given positions within the organization.
2. Commitment Manpower Planning
A systematic approach to human resource planning designed to get managers and their subordinate thinking about and involved in human resource planning.
3. Ratio Analysis
A tool used in human resource planning to measure the organization’s human resource vitality as indicated by the presence of promotable personnel and existing backup. The end product of ratio analysis is an overall organizational vitality index which can be used as a broad measure of the organization’s human resource vitality. The index is calculated based on the numbers of promotable personnel and the number of existing backups in the organization.
“It is process of seeking and attracting a pool of people from which qualified candidates for new vacancies can be chosen”. Most organizations have a recruitment function manage by the Human Resource Department. In an organization recruiting the right number of people at the right time is the top priority.
Organizations do have options other than recruiting new employees to their work. Some of these options include using temporary workforce, offering overtime to existing employees, subcontracting the work to other organizations and leasing the employees. One final reason may be to outsource the work to other companies.
Human Resource planning, recruitment and selection processes. Job analysis gives the nature and requirement of the jobs to be filed. Recruitment concerns providing the pool of people required to fill the jobs. The selection process concerns choosing from the pool of qualified people the individuals or group of individuals most likely to succeed in a given job.
Different Methods of Recruitment
An organization may fill a particular job with someone already employed by the organization or with someone from outside. Following are the different methods of recruitment from inside the organization or from outside the organization.
Internal Methods of Recruitment
When an organization has been effective in recruiting and selection in past, one of the best sources of talent is its own employees .There are many advantages of hiring people from inside the organization like the organization has a good ides about strengths and weaknesses of their employees, recruiting from inside the organization has a good impact on the employees performance and morale. Recruiting within the organization has also some disadvantages like infighting for promotion within organization become overly intense and has a negative affect on the organization performance. Different methods of internal recruitment are given below
Ø Job Posting and Bidding.
Ø Memos to Supervisors.
Ø Listings in Employee Publication.
Ø Buy back.
External Methods Of Recruitment
External recruitment is needed in organization that is growing rapidly or has a large demand for technical, skilled or managerial employees. External recruitment has also certain advantages and disadvantages. Some advantages are the pool of people available is much larger than internal sources, employees hired from outside brings new insights and perspectives to the organization etc. Disadvantage of external hiring is that it is very difficult practically to attract, contract and evaluate potential employees. External sources of recruitment are
Ø Employment Agencies.
Ø Temporary help Agencies.
Ø Employees Leasing Agencies.
Ø Campus Recruiting.
Ø Internet Recruitment.
Ø Employees Referrals and Walk- ins
An obvious and very important question human resource department face is which method of recruitment supplies the best talent pool. Generally it seems safe to say that research has not identified a single best source of recruitment. Thus organization must take steps to identify its most effective recruitment method.
Who is responsible for recruitment?
In most large and small-size organizations, the human resource department is responsible for recruitment. These organizations usually have employment office in human resource department. The employment office has recruiters, clerical personnel who handle the recruitment activities. In small organizations recruitment functions, in addition to many other responsibilities, is normally handle by the office manager. It is also not unusual for the line manager to recruit and interview job applicants.
“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
Ø Reduced Workweeks.
Ø Early Retirements
Ø Job Sharing.
“The process of screening the job applicants to ensure that most appropriate candidates are hired”
“Personnel selection is the procedure used in judging whether applicants are or are not suited for positions needing to be filled”
Human resources are the important asset of an organization. An organization provides satisfaction and value to customers through their employees. For this reason, the HR selection process has a critical importance. Before selecting the employees, many instruments are used to screen the applicants. There are five stages of selection process.
Ø Establishing Selection policies
Ø Establishing Criteria and techniques
Ø Gathering and Evaluating information about Employees
Ø Making the Accept or Reject decision
Ø Communicating the Decision
Means for certain job we are looking or using existing candidate. When we go for internal selection succession identifies potential internal candidates. Information is stored in HRIS. Internal selection can be accelerated. With internal selection steps in selection process are eliminated.
When we are looking for a candidates with special skills which is not available with organization. They go for external hiring. Then selection procedure includes following steps
Ø Preliminary reception
Ø Medical evaluation
Ø Supervisory interview
Ø Realistic job preview
Ø Hiring decision
It can be formal or informal in which the application are screen and we take interviews from different applicants to measure their voices ,dress, physical appearance , personal grooming , educational background, professional training and to limited extent experience.
Tests are still one of the major methods of uncovering qualifications and talents that might go unnoticed in other instruments of selection
The major reason for using testing is that it is the only selection technique that is objects
Types of Tests
Tests can be classified on the basis of personal characteristic sought from the applicant. These includes
Ø Psychological tests.
Ø Aptitudes tests.
Ø Interests tests.
Ø Personality tests.
Ø Knowledge tests.
It means that test scores relate significantly to job performance or to job relevant criterion.
The in-depth interview is often referred to as employment interview, the reemployment interview or the diagnostic interview. It is probably the most important part of the whole selection procedure. It may be
There are three kinds of references personal, academic, and past employment. First of them is of little value as they tend to be biased in the favor of applicant. The second is of considerable value if the personnel recruited develop a relationship with the teachers based on mutual respect and interest.
The most important references the applicant’s former employer. A measure of person’s actual accomplishments, abilities, weaknesses and strengths may be obtained through this way.
Although a physical examination is given as a part of pre employment procedures. First, it is designed to screen out individuals who might not be capable of performing the assigned duties effectively. Second, the exam can be used to screen out who might have high incidence of absenteeism, illness or accidents. Third, it can prevent hiring people with communicable diseases. Finally, it can be used as a defense against unwarranted claims under workers compensation laws or in suits for damages.
The ultimate responsibility for a newly hired worker’s success falls to the immediate worker’s supervisor. Because he is able to evaluate applicant’s abilities. He can then relate with requirement of job. So this matching proves good and required selection.
Realistic job preview
It is general intro to environment before hiring. Employee is allowed to see where he will work. Often involves showing equipment and working conditions. Employee turnover is reduced when it is used. Mostly it for technical working personnel.
This step used to choose the candidates from among the remaining applicants. Whether the selection process regarded as positive selection or negative selection. We make decision on the basis of criteria we have developed in the selection process. If the applicant meets the criteria we select it otherwise we reject him. When the decision is made not to make nor for job offer, the rejection may be done by either the personnel office or the
“The introduction of new employees to the organization, work unit and job.”
Employees receive orientation from coworkers and from the organization. It can be
Informal orientation: From coworkers. It is usually unplanned and unofficial. It often provides the new employee with misleading and inaccurate information.
Formal orientation: From organization. It official and is of much importance.
Orientation is conducted at two distinct levels.
Ø Organizational Orientation.
Ø Departmental and Job Orientation.
It presents topics of relevance and interest to all employees. There should be balance between organization interest and employee personal interest. This sort of orientation maintains it.
Departmental and Job Orientation
Specific orientation that describes topics unique to the new employee’s specific department and job.
It is a supplemental packet of written information for new employees. This kit is prepared by HRD provides wide variety of information. Care should be taken that not too much information is delivered to employees. Many organizations require employee to sign a form indicating they have received and read that kit. It involves material like
Ø Organizational chart.
Ø Map of company’s facilities
Ø List of holidays and benefits
Ø Copy of insurance plan
Ø Copies of required forms and etc.
Orientation Length and Timing
It is virtually impossible that employee absorb all the information in one long session. It should be brief but not to exceed two hours, spread over several days, increase interest among employee. Long sessions can results in a negative attitude on the part of new employee.
HRD should conduct an annual evaluation of total program. The purpose of this evaluation is to determine whether current program is enough or company needs other way to improve it.
Training is a learning process that involves the acquisition of skills, concepts, rules or attitude to enhance the employee performance. Several firms use training for different reasons as
Ø Economic, social, technical and government changes.
Ø Planned organizational changes
Ø Performance problem as low motivation, low productivity etc.
Ø Regulatory, contractual and professional changes.
Basically it is the responsibility of immediate manager to train the new employee but sometimes this task is delegated to the senior coworker .regardless of the quality of training it is very essential for a new employee. Training process involve he following process.
1. Perform job analysis
2. Perform need assessment
3. Establish training objectives
4. Conduct training program
5. Evaluate training outcomes
Let us discuss these one by one.
1) Job Analysis
i. Job Description: It is the written statement about the nature of the job and requirement of the job.
ii. Job Specification: Description of the competency, education and experience qualifications the incumbent must possess to perform the job.
2) Needs Assessment
Needs assessment is the systematic analysis of the specific training activities the organization is require to achieve the objectives.
Training must be directed toward the accomplishment of the organizational goal it means that the organization should commit its resources only into those activities that toward the accomplishment of organization objectives. An organization can decide that what method that is going to adopt in need assessment there are different methods that an organization Can use in need assessment these are
i. Interview with employees
ii. Survey Or Questionnaire
iii. Focused Groups
v. Document Examination
Interview with he employees can be conducted by the hr specialists or by outside expert. The questions may be as
Ø What problem the employee facing in the new job?
Ø What additional skills and knowledge is required?
Ø What training does the employee believe is needed?
The list of the skills required to perform a job is prepared and the employees are asked to choose those skills in which they require training. We can also use employee attitude survey for this purpose. We can use customer survey in order to get knowledge about the training needs of the overall organization.
It is very effective way to determine the training needs but for the observation trained hr job analyst should be selected.
iv. Focused Groups
Focus groups are composed of employees from the various departments and from the various levels in the organization. Usually human resource specialist or the outside expert conducts the session. Focus group discusses the following topics.
A. What knowledge/skills will our employee need for our organization to stay competitive in the next 5years?
B. What problem that our organization has that can be removed through the training?
3) Establishing Training Objectives
After determining the training needs the organization set the objectives to meet those need training objectives can be broadly categorized in to 3categories.
i. Instructional Objectives
Ø What principles, attitude and construct is to be learned?
Ø What are to be taught?
Ø When they are to be taught?
ii. Organizational And Departmental Objectives
Ø What impact that the training will have on the organizational and the departmental outcomes?
iii. Individual Performance & Growth Objectives
Ø What affect the training will have on the individual attitude outcomes after the training?
Ø What will the impact of training on the personal growth?
4) Methods of Training
On the job training is normally given by a senior employee or the immediate manager in this method employee is not only shown how to perform the job but also allowed him to perform it on his own.
Job rotation is on the job training method in which an individual is moved from one job to another job allowing the individual to stay on particular job from some time period as of 6months to 1year.the advantage of job rotation is it increases the exposure and provides flexibility. Different techniques used by the trainer in job rotation are
Ø Preparation Of Trainee For Learning The Job
Ø Breaking Job into Different Components & Identifying The Key Points.
Ø Performance of Operation & Knowledge.
Ø Performance Tryout
Apprenticeship training is the mixture of on the job, off the job, in the practical and theoretical aspect of the work required in the highly skilled occupation. The length of apprenticeship training is determined by the standard adopted in the industry.
Usually a skilled and experienced person conducts the on the job training the purpose of this training is to learn the practical aspects of the job. Apprentices also learn the theoretical study in the classroom.
This training is conducted off the job and it is the most frequently used method in the training. It is an effective way to impart knowledge to a large number of audiences at the same time. Basically it is frequently used for technical, managerial and professional employees.
Virtual classroom is an online teaching and learning technique that the most of the latest companies are following now days. In virtual classroom the participant at the local class and remote class can ask question from the lecturer.
5) Evaluating Training
Evaluation of the training is broken down into 4 areas
Ø Reaction: is concerned with how much trainee liked the program
Ø Learning: is concerned with what principles, facts and concepts were learned
Ø Behavior: did the job behavior of the individual changed after the program
Ø Results: is concerned to measure the changes in the variable for which the training program was conducted as for absenteeism, improved productivity and low motivation problems.
Principles of Learning
The use of the strong learning principles during the implementation of training program helps to ensure that the program will succeed. There are some principles of the learning
Ø Motivation to personal goals.
Ø Knowledge of the results
Ø Flow of the training program
Ø Practice and repetition
Ø Spacing of sessions
Ø Whole or the part training
It is an on going formalized effort by an organization that focuses on developing and enriching the organization’s human resources in light of both the employees and the organization need. (Book)
‘’In organizational development (or OD), the study of career development looks at:*how individuals manage their careers within and between organizations*and how organizations structure the career progress of their members”. (Web definition)
Career Development Objectives
From the organization view point, career development has three major objectives.
Process by which an individual formulates it career goal and develop a plan for reaching those goals. Who is responsible for career development?
1. Organization’s responsibilities.
2. Employee’s responsibilities.
3. Manager’s responsibilities.
The organization is the entity that has primary responsibility for instigating and ensuring that career development has take place. Especially the organization’s responsibilities are to develop and communicate career options within the organization to the employee. The organization should carefully advice an employee concerning possible career paths to achieve that employee’s career goals. Human resource personal are generally responsible for ensuring that this information is kept current as new jobs are created and old ones are phased out.
Employee major responsibility is career planning. Career planning is not something one person does for another; it has to come from the individual. Only the individual knows what he or she wants out of a career, and certainly there desires vary appreciable from person to person.
Career planning does not happen automatically, it needs hard work and conscious effort. The organization can help by providing trained specialist to encourage and guide the employee.
It is the manager moral duty to facilitate the subordinate’s career. First and foremost, the manager should serve as a catalyst and sounding board. The manager should show his employee how to go about the process and then help the employee evaluate the conclusion.
I. Appraising performance
II. Coaching and supporting
III. Guiding and couching
IV. Providing feed back
V. Supplying information
VI. Marinating integrity of system
Unfortunately many managers do not perform their managerial duty and do not perceive career counseling. They have never considered it as a part of their job. Therefore many organizations have designed training program to help their manager to develop their necessary skills in this area.
Implementation of Career Development Program
Successful implementation of career development program involves four basic steps.
Many people never stop to analyze their abilities, interest, and career goals. People by using this approach basically they assess their abilities. Therefore many organizations have developed tailor made form and training program for the use of their employees.
Assessment by the Organization
Different organization has different sources of information that can be used for assessing the employee. The most frequently source is “performance appraisal process”. Other potential sources include 1) assessment center 2) personal records reflecting information such as education and previous work experience.3) checks and balance system.
Communicating Career Options
The basic objectives of the careers goals are to see the opportunities for future that are available within the organization and outside the organization The organization can do several things to facilitate such awareness, posting and advertising job vacancies is one activity that helps employees get a feel for their options.
Sequences of developmental activities involving informal and formal education, training, and job experience that help make an individual capable of holding a more advanced job in the future.
Career Self Management
The ability to keep up with changes that occur within the organization, industry and prepare for the future.
Career counseling is the activity that integrates the different steps in the career development process. Career counseling may be performed by employee’s immediate manager, a human resource specialist, or the combination of the both. Most of the time it perform the immediate manager conduct counseling with the appropriate input human resource personal. The immediate manager has the advantage of practical experience, knows the company and in a position to make a realistic appraisal of organizational opportunities.
Compensation & Benefits
Compensation is refers to all the extrinsic rewards employees receives in an exchange for their work, composed of the base wage or salary, any incentive or bonuses and any benefits Compensation is an important part of the personnel system. Wages and salary administration is highly subjective. Many values and judgments are involved in determining what should be paid to employee as compensation for their knowledge, education, training, time and effort.
Pay refers only to the actual dollars an employee receives in exchange for their work.
Base Wage or Salary is hourly, weekly or monthly pay that employee receives for their work.
Incentive refers to rewards offered in addition to the base wage or salary and usually directly related to the performance.
'BENEFIT rewards employee receives as a result of their employment and position with the organization.
Certain policies must be formulated before a successful compensation system can be developed and implemented.
Ø Minimum and maximum level of pay(taking in to the consideration the worth of the job to the organization, ability to pay, govt. regulation, union influences and market pressures)
Ø General relationship among levels of pay(e.g, between senior management and operating management, operating employees and supervisors)
Ø The division of the total compensation dollars(that is what portion goes into base pay, incentive program and benefits)
Performance Management System
“Performance management is a process used within organization to establish and evaluate an individual’s job performance to achieve goals and objectives”. Performance management system is directly tied to the organizational reward systems provide a powerful incentive for employees to work diligently and correctly towards achieving organizational objectives. When properly designed and implemented, performance management system not only let employees know how well they are presently performing but also clarify what needs to be done to improve performance.
Environmental Factors as Performance Obstacles
Many factors beyond the control of the employees may affect their performance. Common potential performance obstacles are
Ø Inadequate work facilities and equipments.
Ø Restrictive Policies that affect job.
Ø Lack of cooperation from others.
Ø Temperature, Lighting and Noise.
Ø Work shift and Machinery.
Responsibilities of Human Resource Department in Performance Management: Performance management system requires a coordinated effort between the human resource department and the managers of the organization who are responsible for conducting performance appraisals. Generally, the responsibilities of human resource department are to
Ø Design the performance management system and select the methods and forms to be used for appraising employees.
Ø Train managers in conducting performance appraisals.
Ø Maintain performance appraisals record for the individual employees.
Responsibilities of Immediate Managers
The responsibility of the manager in performance appraisals are to
Ø Evaluate the performance of the employees.
Ø Complete the forms used in appraising the employees and return them to the human resource department.
Ø Review appraisals with the employees
Ø Establish a plan for improving the employee’s performance.
“A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made”. Performance appraisal should be based on job analysis, job description, and job specifications. Performance appraisals may be formal and informal.
Formal Performance Appraisals
“A formalized appraisal process for rating work performance, identifying deserving raises or promotions, and identifying those in need of further training”.
Informal Performance Appraisals
“The process of continually feeding back to subordinates information regarding their work performance”
Performance Appraisals Methods
Whatever methods of performance appraisals an organization used; it should be based job realistic. Widely used performance appraisals methods are given below
Ø Management by Objectives(MBO)
Ø Multi-rater assessment(or 360-degree feedback)
Ø Graphic rating scale
Ø Behaviorally anchored rating scale(BARS)
Ø Critical –incident appraisals
Ø Forced-choice rating
Ø Ranking methods
Ø Work standard methods
Ø Essay wrings
The results of the employee’s performance appraisals must be communicated to the employees after performance ovulation. For this purpose a proper interview must be conducted. The manager should answer the following questions
1. What good contribution is the employee making?
2. Is the employee is working up to his or her potential?
3. Is the employee clear about the manager’s performance expectation?
4. What training does the employee need to improve?
5. What strengths does the employee have that can be built on or improved?
Introduction to Bank Alfalah
Bank Alfalah Limited was incorporated on 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 104 branches in 36 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 our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.
Products & Services
The bank’s primary objective is to provide a wide range of financial products and services to individuals and various other entities in the country.
They are continuously formulating new products and services for the growing and diversified needs of their ever-expanding client base.
Bank Alfalah has launched Credit Cards, ATM Cards, and plans to further expand its online facilities.
Following are the major products of Bank Alfalah Limited, which are prime examples of quality innovation, providing timely banking opportunities to their customers:
i. Saving Deposits
ii. Notice Deposits
iii. Royal Profit
iv. Royal Patriot
v. Royal Group
vi. Term Deposit
Ø Alfalah Car Financing
Ø Credit Cards
Ø Home Financing
Ø Agri Loan
Ø Karobar Financing
Ø Money Gram
Ø Edge on competitors.
Ø High profits.
Ø Expansion of strong structure.
Ø Variety of Products.
Ø A good banking standard.
Hierarchy of HRD
HRP in Bank Alfalah
Bank Alfalah follows the cascade approach in their human resource planning because decision in area offices as well as in the head office. Long term planning and strategic planning is done by the top management in the head office while the short term planning is done in the area office as well as in the head office.
How HRP relates with the BAL Planning
The HRD of Bank Alfalah makes its plans in accordance with the overall planning of the organization. For example as we know that Bank Alfalah is passing through its expansion phase so the HRD makes its planning about hiring the new employs in all phases.
As the objective of BAL is to get the completive edge by providing good standard services and to make profit by attracting large number of loyal customers. So the HRD plans to train the existing employs to polish their skills in facilitating the customer relationship.
Steps of HRP process in BAL
Judgmental method is used by HRD of BAL in order to forecast the future demand. All the units/ branches of the bank should systematically forecast their future staffing requirement for timely induction of competent high quality staff. Such forecasting should be done in the month of October/ November for the next year. If a certain branch send the personal requisition form in the area office. It conducts a test in the area office after it the passing candidates are called for the interview in area office. The employs which are approved through area office are sent to the head office for the final interview. The staff hiring may be done in batches in small groups or individual.
Technique for HRP in BAL
Bank Alfalah uses the succession planning; that identifies the specific people to fill the future openings in key position throughout the organization. These people can be identified through skill and management inventory form. Through skill inventory and management inventory we get information about the employ current designation, length of the service, past performance and potential for future advancement and their geographical location to place them in their nearest station.
Recruitment in Bank Alfalah
Bank Alfalah uses both methods internal and external for recruitment depending upon the number of the employees required.
When there is any vacancy in the branch BAL uses information from the skill/ management inventory to get the detail of the eligible employee. They inform these employees by sending the circular in the concerned departments. Circular contains information as the job title, salary range and the necessary requirements and some specific time is given to employees to submit their applications.
Ø BAL uses the advertisement in news papers and on their website and the forms is available at different branch of the bank as well as on the internet.
Ø Unsolicited applications are used in the local recruitment. The fresh graduates submit their CVs in the area office, whenever a need arises the unsolicited applicants who remain in contact with BAL and the applicants referred by the strong depositors are preferred.
Selection in Bank Alfalah
Selection procedure includes following steps
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 are conducted in Lahore. Pen and paper test they use as a testing tool. There is condition of 50% marks for further proceeds.
Interviews are also held in Lahore. 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.
No medical evaluation.
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.
Those who perform well in test and in interviews and are on criteria are hired. Finally they send appointment letter to selected candidates.
Orientation in Bank Alfalah
The BAL is very much concerned about providing the necessary information to its newly employees therefore the BAL conducts a formal orientation session in order to make their vision clear about the organization as well as the employees interest. Therefore organization is very careful about its formal orientation. Orientation session is conducted in Lahore & Karachi usually for one day.
In the orientation session an employee hand book is given to the new employees by Human Resource Department and asked them to go through the hand book and if they find any ambiguity regarding any head they can make their vision clear.
The employee hand book contains the following contents.
When a new employee is hired; after completing his training when he comes to join the branch usually HR coordinator takes him to his department and introduce him to his peers and the immediate manager of the section. The head of his section is usually responsible for the job orientation.
Training in BAL
It is well known fact that in the service industry, the only competitive edge an organization can have is the quality of its human resources. Bank Alfahah’s emphasis on training and development of the bank’s human resources stems from the sharp focus that the Chairman and the Board of directors of the bank have placed on the imperative of training and development. Chairman of the bank has asked the bank’s management to ensure that the bank’ training facilities at Karachi are upgraded and the new training department is started in Lahore on its part, State Bank of Pakistan has time and again emphasize the need for all banks to ensure the availability of high quality training courses to their employs.
Bank Alfalah Training Strategy
It revolves around the following factors
1) All employs must have access to high quality training in order to build their career
2) Every staff member needs frequent and regular training in his existing, as well as in future skill areas. Recommended minimum training for each staff member is two courses in areas relevant to their jobs. Many people will attend more than this minimum requirement.
3) A sizable proportion of the bank’ training resources are spent on its preferred entry schemes involving fresh graduates inducted from universities. These ladies and gentlemen are trained and groomed prior to their BAL branches.
Training Programs during 2006
While planning training activities for the year2006, TDC had to take into account the bank’s total staff strength of over 3500 spread in 13 areas and 6 product division. The challenge was to provide high quality training to the entire workforce which is directly related to jobs. Training and Development centers Karachi has chalked out an ambitious training plan for the period January to December 2006. During this time 9 long duration curses for different batches (2 BTO, 2 MTO, 3 Cash Officer, 2 Operation Officer). In addition 120 short courses are to be offered on variety of topics. A number of courses are planned in area of leadership and management skill development as well as in personal effectiveness skills.
Training Program for Cash Officer, Operation Officers and CSO
The BAL also recruit fresh graduates as cash officers, operation officers and customer service officers through a competitive process for induction into main stream general banking operation. The duration of the training program in these positions is four to six weeks and frequency of the batches depends upon staffing requirement of the bank.
Where in- houses is not available in certain areas, employee may be nominated to attend training program offered by other institutions including IBP. External training consultants can be used to conduct training whenever deemed necessary.
Methods of Training
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.
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.
TDC was established in 1982. It has produced some of the most renowned senior bankers in Pakistan. Today this centre is equipped with state of the art facilities included two fully equipped training hall with the capacity of around 100 students. A well furnished and experienced team of the instructors. Due to the growing pressure TDC Lahore has been operational since May 2005, with three full time faculties and has a capacity of 75 trainees in two class rooms.
Bank Alfalah can boast of the fact that all the 8 of its faculty member have years of field banking exposure along with the number of the years of training experience. They attend advanced external courses in the areas of their specialization as well as in training skills. Further they get opportunities to refresh their technical banking knowledge by short period assignment at BAL branches within their respective areas of specialization.
Account Opening/ AML
Relevant Operation Officer
Basics of Trade Finance
Junior Trade Finance Officers
Cheques & other negotiable instruments
Relevant Operation Officer
All BAL Staff
Credit Admin Staff
Credit Line Proposal & Financial Analysis
Credit Marketing Officer
Credit Risk Management
Customer Service Skills Workshop
Dealing with Risk Involved in LC
Trade Finance Dept Heads
Induction/ Orientation Program
All Officers in range 4/above
Operation Manager Tool Kit
Personal Excellence for Top Performance
All Officers in range 4/above
Remittance & Collection
Relevant Operation Officer
Selling Skills Workshop
UCP Role in Trade Finance
Trade Finance Dept Heads
Career Development in BAL
The BAL provides the opportunity of career advancement and career counseling. In the beginning of the year employees are being asked to inform about their preferences in their career and also the immediate manager guides the employee in setting their career objective and help them in choosing their career path. Through the appraisal form the area manager send his opinion about the potential that the employee have about particular area to HRD at the Head Office. In BAL it is the share responsibility of the organization, manager and employee himself. The BAL facilitates its employees to achiever their goals by suggesting those skills and sources which can help them in achieving their career objectives. For example if a cashier who is selected on graduation basis wants to be promoted at MTO designation then it advises the employee to get an MBA degree from any recognized institution.
Compensation and Benefits
A Standard Salary Scale & Rules
Employees salaries are payable monthly. The pay period runs on a calendar month basis and salaries are payable the end of a work usually 26th or 27th of each month. Each Employee is required to have a bank account with BAL at their place of posting for salary purpose.
All Employees will receive monthly salary slips on which their basic salary, allowances and deduction will be given with full detail including Provident Fund and Tax Deduction.
BAL reserves the right to recover any overpayment of remuneration or any other payments made by mistake or through any misrepresentation or otherwise from the Personal account of the concerned employee.