Professional Documents
Culture Documents
Since, its inception as the new identity of H.C.E.B after the privatization in1997, the
management of the bank has implemented strategies and policies to carve a distinct position for
the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven
by the strategic goals set out by its board of management, the Bank has invested in revolutionary
technology to have an extensive range of products and services. This facilitates their
commitment to a culture of innovation and seeks out synergies with clients and service providers
to ensure uninterrupted services to its customers. The portfolio concentrates on all aspects of
conventional banking as well as the financial needs of corporate sector. Dynamic and high value
product includes Car Financing, Home Financing, Rupee Travelers, Cheques, Credits Cards,
Debit Cards, On line Banking, ATM and consumer Durables. In addition to this, Islamic Banking
Division is a recent initiative, which operates as separate branch. It offers Shariah.
The Bank provides financial solutions to consumers, corporations, institutions and governments
through a broad spectrum of products and services, including corporate and investment banking,
consumer banking and credit, commercial, SME, agri-finance, Islamic and asset financing.
The Bank has invested in revolutionary technology to have an extensive range of products and
services. This facilitates commitment to a culture of innovation and seeks out synergies with
client and service providers to ensure uninterrupted services to its customers. The Bank looks
ahead with optimism at the future. It aims to continue investing in its core strengths to provide
best in class products and services to its diverse range of clients.
VISION
To be a premier financial services organization, operating both locally and globally, offering a
complete range of financial products and services to diverse segments under one umbrella.
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MISSION
To develop & deliver the most innovative products and deliver exceptional service quality which
contribute to strengthening brand equity strength and maximize value for the stakeholders of the
Bank.
CORE VALUE
Integrity, Professionalism, Service Excellence, Social Responsibility, Marketing knowledge,
Reasonable Returns, Diversification, Risk Management.
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individuality of every team member at the Bank, providing each with a stimulating environment
to prosper and grow.
Innovation
Alfalah Bank welcomes out-of-the-box ideas and encourages our employees to think on various
tangents. Alfalah Bank believes this gives the kind of fresh perspective to things which enables
us to stand out amid the crowd and edge forward.
Enthusiasm
Determination and perseverance at a routine job, a new project or a crisis situation demand high
energy levels and this is what Alfalah Bank expects from their team members.
Passion
Alfalah Bank advocates the thought that only when an idea is strongly believed and ardently
pursued, chances for its success grow exponentially. It is this passion and perseverance that
Alfalah Bank looks for in our potential resources.
Integrity
Bank Alfalah promotes and practices transparent and honest work behavior for all its employees.
The sense of responsibility inculcated in every member of the organization demands and
impeccable and intact work ethic system.
Commitment
Bank Alfalah believes loyalty and care go hand in hand. Our employees who display an
unwavering level of commitment towards the Bank are the ones who are valued the most.
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years. The successful expansion program has proved the banks capability and commitment in
comparison with the competition in the industry. The bank has increased its branch network a lot.
In future planning bank continues to maintain positive and healthy liquidity and want to
maintain good relation with its customers. There target is to first leading bank in Pakistan. Bank
Alfalahs objective has been to expand its branch network to meet its clients needs. The banks
strategy is to maximize the synergies of branch network through an optimal allocation of
financial, human and other resources in order to meet the dynamic challenges of present financial
environment.
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HRM Department & Bank Alfalah
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History of HR Department in Bank Alfalah
Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group. Bank
Alfalah was incorporated on June 21, 1997 .When this bank established, there are lack of
mismanagement in this service sector and a lot of problems facing them but after 3 years of
establishment, HR Department of Bank Alfalah is fully activated in year of 2000.As it is working
insignificant in the sector but not fully aware of the market challenges and the market trends as
the with the passage of time and challenges they fully in control in the year 2000.HR department
play a vital role in Bank Alfalah . Human Resource Management is important for banks because
banking is a service industry. Management of people and management of risk are two key
challenges facing banks. How you manage the people and how you manage the risks determines
your success in the banking business .It is a common complaint among bank executives that
skilled manpower is in short supply, and the same problem facing this bank but after the creation
and foundation it will resolve the problem very quickly. Human resources professionals in banks
must go the extra mile to recruit the best executive talent in the banking field, allowing their
organizations to thrive and grow into the future. You need to manage the people and for this
you need to discriminate between the people, I mean positive discrimination. The entire spectrum
of HR practice requires revolutionary changes if the banks have to survive. Managing the people
is the key challenge. Training is needed in virtually every business and industry because every
service sector has its own policies and procedures employees must follow. It is HRs
responsibility to figure out how to conduct the training so that operations are not interrupted or
strained. Human resources departments must design and monitor work processes to reduce
opportunities for internal theft and collusion. In the past at Alfalah bank there is event that an
employee attempts to steal from a bank, the HR department must handle the legal paperwork and
administrative processes required by court proceedings. HR professionals in banks have a hand
in making decisions for pay raises and promotions. Bank workforces are unique in that they often
have two methods of paying employees: salaries for back-office and other personnel, and
commissions for sales employees.
Hierarchy of HR Department
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Mudasir Aqil
GM HR
Mr.Danish
(Mgr PFM)
Mr.Rao (Dis
Action)
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Total Number of Employees 2001 To 2014
9000
8178
8029.5
7883.7
7740.55
8000 7584
7371 7600
7462
7000 6543
6000
5218
5000
4000 3352
3000
2133
2000 1504
959
1000
0
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Designations/ grades distribution in bank Alfalah
In bank Alfalah the grades are divided into different categories and ranges, the ranges include the
following designations which are discussed in this table
RANGES DESIGNATIONS
Range IX CEO, President, GM, Group Head
Range VIII Regional manager, Heads
Range VII Area manager, supervisors
Range VI Branch manager, Senior manager
Range V Branch manager, manager, operation manager
Range IV Assistant manager
The number of subordinates that a manager or supervisor can directly control. In other words we
can say that how many workers work under one manager. At bank Alfalah the span of control
varies at branch level and at head office level. In branch under one manager the minimum
workers are 6 and maximum are15-20 and this is depend upon the size of the branch and in head
office under one manager there are minimum 5 workers and maximum 25-30 workers and in
head office major part of work is done in teams.
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President (CEO) to Senior Executive (VP) and from Senior Executive (VP) to Executive (VP)
and so on towards Clerical Staff this is downward communication and vice versa is upward
communication. When information is exchanged between the employees who are working at the
same level in the organization then this is lateral communication.
At bank Alfalah there is succession planning and they do succession planning internally and
externally. When there is a proper person who suits with the designation and is working in the
organizations they selected them internally for the designation and if no one suits with the
designation they go for the external selection and mostly for this selection recommended
candidates were selected on the behalf of board of directors, chairman.
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Managing wages and salaries
Providing incentives and rewards
Methods of downsizing
Leave policies
Action Planning
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the analysis of the present resources such as internal HR supply, external HR supply, analysis of
the human resource utilization etc.
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number of employees needed through human resource forecast and work utilization analysis and
second when they are needed. The Bank Alfalah adopts the recruitment period which also called
Recruitment pipeline. Recruitment pipeline means the duration between the receipts of resume
and the time of new hire start work.
From To Days
Resume Invitation 5
Invitation Interview 6
Interview Offer 4
Offer Acceptance 7
Acceptance Work Report 21
Total 43
Sources of recruitment
Following are the some sources of Job Recruitment in Bank Alfalah
By Website
By Newspapers
Recruitment Process:
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Assess need (strategic planning and tactical planning):
There is no fixed quota of number of employees to be recruited, it depends on need and the
strategic (organizational) and tactical (branch level) requirements.
Make selection:
After further interviews and other processes the final candidate is selected. Questions in an
interview are made by doing proper job analysis of the job. That includes identifying the job
duties and requirements
Types of recruitment
There are two types of recruitment in Bank Alfalah:
Internal
External
Internal:
Includes recruiting of already existing employees for new jobs within the organization
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External:
Includes bringing new blood in an organization. Recruiting people who are new
Need basis
Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate
candidates for its organization and the process is as follows
Preliminary Interviews
Experienced Professionals
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Based on requirements of experienced staff, Bank Alfalah also recruits talent from the
marketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals at all
levels who wish to join hands with Bank Alfalah. The procedure for selecting such professionals
is as follows:
Experienced Professionals
Preliminary Interview
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Executive Recruitments:
Range I In Bank
III Alfalah, Executive recruitments are done by CEO.
Written Range IV & Panel
Test Interviews
Selection Process of Bank Alfalah:
This is a simple flowchart of how Bank Alfalah executes its selection but the actual working is a
more complex and detailed which is described below for providing a detailed understanding of
the selection process and the efforts undertaken by the human resource management in selecting
a person for a job. This requires resources such as time, skills, energy and cost. Follow the details
below for clear understanding.
Types of Selection
1) Recommendation based for experienced staff
2) Badge Hiring for fresh staff
Experienced people can be selected on basis of recommendation but fresh candidates are only
selected on basis of passing tests and interviews.
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Training of employs
Following are the basic steps in training employees in Bank Alfalah:
Need Analysis
Mangers and faculty is hired for training purposes.-Training Mangers are in their respective head
offices.
In Bank Alfalah Ltd. the process of Training and Development consists of various other activities
like:
I. The appraisal form of an employee indicates the areas in which the employee should be
trained and developed. It also elaborates the abilities of an employee
II. Management and Organization Development Division of each region timely reviews the
employees and recommends them for training during the operations it they note any
discrepancy between the desired and actual performance. This review is performed after
every quarter.
III. Upon the request of GM (Operation), indicates which sort of training is needed in a
particular region regarding the Operation Support and Service
Training and Development of the employees is the most important aspect that should never be
neglected. In Alfalah bank there is a specific technique used for training and development of the
employees. Before starting training and development needs one must assess the training needs.
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The performances of employees are appraised yearly at Alfalah Bank. HR head said that
It is a structured discussion between employee and supervisor. It provides an opportunity for the
supervisor to recognize an employees achievement, offer suggestions for improvement when
needed, discuss job responsibilities, define objectives, counsel for career advancement, and
justify a pay adjustment.
Bell curve system of appraisal is a forced ranking system imposed on the employees by the Alfalah
bank management. Forced ranking has been defined as a workforce management tool based on the
premise that in order to develop and thrive, company must identify its best and worst performers.
Alfalah bank follows this Bell curve system; it rates the entire workforce by comparing the
performance of engaged in similar activity and ranking them on the basis of their performance. The
entire workforce is segregated as the top performers, medium performers and the poor performers.
The percentile varies with company policy; it could be the top 10%, middle 80% and the bottom
10%.
The employees in the Alfalah bank belonging to the higher grade contribute significantly to the
enterprise. They are showered with rewards like restricted stock options, bonuses, etc. so as to
motivate them to continue their excellent services to the business entity. The middle percentile
employees are significant in number and their presence ensures continuous work flow within the
organization. They generally have some weakness which is negated by the training facilities
offered by the company. The bottom ranking consists of those whose performance needs
significant improvement and whose is unsatisfactory. The ranking acts as a warning system that
tells the employee where he stands in relation to his peers. The employees belonging to the lower
levels are at times given the opportunity to improve their efforts or are renounced from the
system. The bell curve system of appraisal provides the momentum to the employees to push
them forward, aiming higher. It is assumed that the bottom performers are replaced every year on
account of their unsatisfactory performance by fresh talents who can add up to the output of the
organization. Some companies take bell curve rankings a step farther and require managers to
classify employees on a curve. Other companies use the normal curve to "calibrate" rankings
across business units or line managers.
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There are three basic types of compensation Gross pay, Benefits, Reimbursements. Pay is the
cash reward.
Basic Salary
Bonuses
Medical Facilities
Allowances
Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from top to bottom,
on the bases of compensable factor. Employee with higher rank gets highest pay and incentives.
If an employee or his/her dependent avails treatment in a Non-Panel Hospital, first he/she will
have to incur the expenses from his/her own pocket, then the claim for reimbursement will be
submitted within 30 days after discharge from the Hospital. The Insurance Company will
reimburse the claim in accordance with their discounted rates with network hospitals. So there is
a possibility of not receiving full claimed amount
i. Hospital Receipt/Bill
ii. Discharge Certificate/Report
iii. Doctors Prescription
iv. Cash Memos regarding purchase of Medicine
v. Clinical Summary
Reducing the size of a company by eliminating workers. At bank Alfalah there is no downsizing
up till now. The general methodology is used that if they found a worker whose performance is
comparatively low they first issue them a warning letter, and if the employee performance
remains the same then they issue the second letter of warning and after wards they simply asked
that employee to give a resign otherwise they terminate that employee.
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Every organization has different policies regarding the leave policies, at bank Alfalah the
following leave policies are as follows
Casual leave are 10, sick leave are 8, and privilege leaves are 30 in a year and sick leaves are
double to 16 days if the employee is sick.
Employee Advocacy:
We are not 100% following the employee advocacy said Muhammad Danish the Assistant HR
Manager. We follow all the laws which State Bank regulates. In our organization the minimum
salary of the employee is 12500 which are according to the labor law in Pakistan. We make
amendments in the labor laws according to the need of our organization.
Recommendations
Alfalah bank human resource system is working well as such there is no any complex problem
but Muhammad Danish told us that at the time of recruitment we face some problems because
we have to do huge and intensive recruitment so as recommendation we recommend for this
problem that target recruiting resources more effectively to reach a broader pool of applicants,
revise recruiting and testing practices, and gave a response to all eligible candidates.
Conclusion
The economy of the country is booming and with the investment favorable policies and their
smooth implementation, the role of banks in todays economy have become an important one.
Since Alfalah bank establishment it has aimed to become the leading bank of Pakistan by that
provides outstanding services to its customers and also maintaining the good relation with its
employees. Now a days Bank Alfalah is the leading bank in the banking sector in the Pakistan
which is practicing the effective performance management system. Thats why they have the
happy employees which in-turn bring succeed to the organization.
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