Human Resource Management

ACKNOWLEDGEMENT

I would like to acknowledge extremely valuable assistance provided by all my teachers for their great cooperation. They provide the proper guidance and support time to time which helps me a lot to work in such competitive environment and the timely completion of assignments. The environment of my study centre is very good.

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Human Resource Management ABSTRACT

This assignment from the course of Human Resource Management. My topic is Career Planning. This ASSIGNMENT is the part of my MBA study. In the specialization MBA, University sends/asks all the students for prepare these assignments. The program helps the students to understand the practical conditions of different organization and their cultures, their values, their policies, marketing and competitive strategies and also their implementation. My basic purpose for doing this assignment was to understand the process and opportunities of career Planning in Allied bank of Pakistan. During this assignment program I get practical data from official website of Allied Bank of Pakistan. It is very important for the student of MBA to get practical skills from any organization. For completion of this assignment related to my topic I have collected data from different sources I collect data through discussion with the teachers and my fellows and recommended books from the university.

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Human Resource Management

Contents
ACKNOWLEDGEMENT ................................................................................................................................... 1 ABSTRACT...................................................................................................................................................... 2 CAREER PLANNING........................................................................................................................................ 4 INTRODUCTION ............................................................................................................................................. 4 DEFINITION OF CAREER .................................................................................................................. 4 IMPORTANT ELEMENTS OF CAREER ............................................................................................................. 5 OVERVIEW OF THE TOPIC ............................................................................................................................. 5 CAREER PLANNING IN AN ORGANIZATION ................................................................................................... 7 CAREER PLANNING VS HUMAN RESOURCE PLANNING ................................................................................ 7 NEED FOR CAREER PLANNING ...................................................................................................................... 8 OBJECTIVES ......................................................................................................................................... 8 CAREER PLANNING PROCESS ........................................................................................................................ 9 i. Identifying individual needs and aspirations: ............................................................................... 9 ii. Analyzing career opportunities: .................................................................................................... 9 iii. Aligning needs and opportunities: ............................................................................................. 10 iv. Action plans and periodic review: .............................................................................................. 10 CASE STUDY................................................................................................................................................. 16 ALLIED BANK LIMITED ................................................................................................................................. 16 INTRODUCTION ....................................................................................................................................... 16 History of Allied Bank LTD ....................................................................................................................... 16 MANAGEMENT HIERARCHY .................................................................................................................... 17 Compensation Strategy Process in ABL .................................................................................................. 19 CAREER PLANNING OPPURTUNITIES IN ABL ............................................................................................... 19 SWOT analyses ............................................................................................................................................ 20 Strengths ................................................................................................................................................. 21 Weakness: ............................................................................................................................................... 21 Threats .................................................................................................................................................... 21 Opportunities .......................................................................................................................................... 21 Conclusion ................................................................................................................................................... 21 References .................................................................................................................................................. 22

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Human Resource Management CAREER PLANNING INTRODUCTION

Effective HRM encompasses career planning, career development and succession planning. An organization without career planning and career development initiatives is likely to encounter the highest rate of attrition, causing much harm to their plans and programs. Similarly without succession planning managing of vacancies, particularly at higher levels, become difficult. There are examples of many organizations that had to suffer for not being able to find a right successor for their key positions. With the increase scope for job mobility and corporate race for global headhunting of good performers, it is now a well established fact that normal employment span for key performers remains awfully short. The term career planning and career developments are used interchangeably in most of the organizations. It is also correct that but for their subtle difference in the definitional context, their process remains the same. DEFINITION OF CAREER Career is a sequence of attitudes and behaviors associated with the series of job and work related activities over a persons lifetime. Yet in another way, it may be defined as a succession of related jobs, arranged in hierarchical order, through which a person moves in an organization. As the literal definition of career focuses on an individually perceived sequence, to be more accurate, career may be either individual-centred or organizational-centred. Therefore, career is often defined separately as external career and internal career. External career refers to the objective categories used by society and organizations to describe the progression of steps through a given occupation, while internal career refers to the set of steps or stages which make up the individuals own concept of career progression within an occupation. For such two different approaches, in organizational context, career can be identified as an integrated pace of vertical lateral movement in an occupation of an individual over his employment span.

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Human Resource Management IMPORTANT ELEMENTS OF CAREER Analyzing definitional context, it is clear that career has following important elements-

1. It is a proper sequence of job-related activities. Such job related activities vis-a-vis experience include role experiences at diff hierarchical levels of an individual, which lead to an increasing level of responsibilities, status, power, achievements and rewards. 2. It may be individual-centered or organizationalcentered, individual-centered career is an individually perceived sequence of career progression within an occupation. 3. It is better defined as an integrated pace of internal movement in an occupation of an individual over his employment span. OVERVIEW OF THE TOPIC Career planning generally involves getting to know who you are, what you want, and how to get there. Keep in mind that career planning is a continuous process that allows you to move from one stage to another stage as your life changes. You may even find yourself going back to look at who you are again after exploring how to get there. Learning to negotiate the career planning process now is essential, considering most people will change careers several times in a lifetime. If a career plan is to be effective, it must begin with an objective. When asked about career objectives, most managers will probably answer by saying that they want to be successful. What is success? Definition of success depends on personal aspirations, values, self-image, age, background and other different factors. Success is personally defined concept. In order to plan your career, you need to have an idea of what constitutes career success. Do you want to be president of the company? Do you want to be the senior executive in your field of expertise? Would you be happier as a middle manager in your area? Whatever the choice it must be yours.

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Human Resource Management

Career management is a process by which individuals can guide, direct and influence the course of their careers.

Fig.1.1 General Periods in Careers In the course of our career we move from one stage to another setting and implementing appropriate goals at each stage. Our goals differ from getting established on job at early career stage to career reappraisal, moving away from technical areas & becoming more of a generalist. Movement form one career stage to another will require individuals to update self & to appropriate change goals. When required danger exist that individuals may too long stay in a job they dont like or miss career opportunity A sensible early step in career planning is to diagnose. You might answer questions: What types of positions and career experiences do I need to achieve my goals? What personal traits characteristics and behaviors require change in order for me to improve my professional effectiveness?

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Human Resource Management CAREER PLANNING IN AN ORGANIZATION

Career planning is the process by which one selects career goals and the path to these goals. The major focus of career planning is on assisting the employees achieve a better match between personal goals and the opportunities that are realistically available in the organization. Career programmers should not concentrate only on career growth opportunities. Practically speaking, there may not be enough high level positions to make upward mobility a reality for a large number of employees. Hence, career-planning efforts need to pin-point and highlight those areas that offer psychological success instead of vertical growth. Career planning is not an event or end in itself, but a continuous process of developing human resources for achieving optimum results. It must, however, be noted that individual and organizational careers are not separate and distinct. A person who is not able to translate his career plan into action within the organization may probably quit the job, if he has a choice. Organizations, therefore, should help employees in career planning so that both can satisfy each others needs. CAREER PLANNING VS HUMAN RESOURCE PLANNING Human Resource planning is the process of analyzing and estimating the need for and availability of employees. Through Human Resource planning, the Personnel Department is able to prepare a summary of skills and potentials available within the organization. Career planning assists in finding those employees who could be groomed for higher level positions, on the strength of their performance. Human Resource planning gives valuable information about the availability of human resources for expansion, growth, etc. (expansion of facilities, construction of a new plant, opening a new branch, launching a new product, etc.). On the other hand, career planning only gives us a picture of who could succeed in case any major developments leading to retirement, death, resignation of existing employees. Human Resource planning is tied to the overall strategic planning efforts of the organization. There cannot be an effective manpower planning, if career planning is not carried out properly.

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Human Resource Management NEED FOR CAREER PLANNING

Every employee has a desire to grow and scale new heights in his workplace continuously. If there are enough opportunities, he can pursue his career goals and exploit his potential fully. He feels highly motivated when the organization shows him a clear path as to how he can meet his personal ambitions while trying to realize corporate goals. Unfortunately, as pointed out by John Leach, organizations do not pay adequate attention to this aspect in actual practice for a variety of reasons. The demands of employees are not matched with organizational needs; no effort is made to show how the employees can grow within certain limits, what happens to an employee five years down the line if he does well, whether the organization is trying to offer mere jobs or long-lasting careers, etc. When recognition does not come in time for meritorious performance and a certain amount of confusion prevails in the minds of employees whether they are in with a chance to grow or not, they look for greener pastures outside. Key executives leave in frustration and the organization suffers badly when turnover figures rise. Any recruitment effort made in panic to fill the vacancies is not going to be effective. So, the absence of a career plan is going to make a big difference to both the employees and the organization. Employees do not get right breaks at a right time; their morale will be low and they are always on their toes trying to find escape routes. Organizations are not going to benefit from high employee turnover. New employees mean additional selection and training costs. Bridging the gaps through short-term replacements is not going to pay in terms of productivity. Organizations, therefore, try to put their career plans in place and educate employees about the opportunities that exist internally for talented people. Without such a progressive outlook, organizations cannot prosper. OBJECTIVES Career planning seeks to meet the following objectives: i. Attract and retain talent by offering careers, not jobs. ii. Use human resources effectively and achieve greater productivity.

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Human Resource Management iii. Reduce employee turnover. iv. Improve employee morale and motivation. v. Meet the immediate and future human resource needs of the organization on a timely basis CAREER PLANNING PROCESS The career planning process involves the following steps: i. Identifying individual needs and aspirations:

Most individuals do not have a clear cut idea about their career aspirations, anchors and goals. The human resource professionals must, therefore, help an employee by providing as much information as possible showing what kind of work would suit the employee most, taking his skills, experience, and aptitude into account. Such assistance is extended through workshops/seminars while the employees are subjected to psychological testing, simulation exercises, etc. The basic purpose of such an exercise is to help an employee form a clear view about what he should do to build his career within the company. Workshops and seminars increase employee interest by showing the value of career planning. They help employees set career goals, identify career paths and uncover specific career development activities (discussed later). These individual efforts may be supplemented by printed or taped information. To assist employees in a better way, organizations construct a data bank consisting of information on the career histories, skill evaluations and career preferences of its employees (known as skill or talent inventory). ii. Analyzing career opportunities: Once career needs and aspirations of employees are known, the organization has to provide career paths for each position. Career paths show career progression possibilities clearly. They indicate the various positions that one could hold over a period of time, if one is able to perform well. Career paths change over time, of course, in tune with employees needs and organizational requirements. While outlining career paths, the claims of experienced persons lacking

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professional degrees and that of young recruits with excellent degrees but without experience need to be balanced properly. iii. Aligning needs and opportunities: After employees have identified their needs and have realized the existence of career opportunities the remaining problem is one of alignment. This process consists of two steps: first, identify the potential of employees and then undertake career development programmers (discussed later on elaborately) with a view to align employee needs and organizational opportunities. Through performance appraisal, the potential of employees can be assessed to some extent. Such an appraisal would help reveal employees who need further training, employees who can take up added responsibilities, etc. After identifying the potential of employees certain developmental techniques such as special assignments, planned position rotation, supervisory coaching, job enrichment, understudy programs can be undertaken to update employee knowledge and skills. iv. Action plans and periodic review: The matching process would uncover gaps. These need to be bridged through individual career development efforts and organization supported efforts from time to time. After initiating these steps, it is necessary to review the whole thing every now and then. This will help the employee know in which direction he is moving, what changes are likely to take place, what kind of skills are needed to face new and emerging organizational challenges. From an organizational standpoint also, it is necessary to find out how employees are doing, what are their goals and aspirations, whether the career paths are in tune with individual needs and serve the overall corporate objectives, etc.

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CAREER PLANNING MODELS There are many models one may use while career planning. The two main models are Waterloo University Model

The SODI Career Planning Model Given the complexity of career development and the fluidity of the world of work, we need to be able to navigate our career paths with purpose and clarity. Law and Watts (1977) devised a simple model of career education which has stood the test of time. This model has been changed slightly to become a career planning, rather than a career

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education model and named the SODI model where the last element is implementation rather than transition learning, and decision learning becomes decision making and planning. The model encapsulates four concepts which are: Self-awareness individual having knowledge about and understanding of their own personal development. Self-awareness in a careers context involves an understanding of kind of personal resources (both actual and potential) they bring to world. Opportunity awareness an understanding of the general structures of the world of work, including career possibilities and alternative pathways. Decision making and planning an understanding of how to make career decisions, and being aware of pressures, influences, styles, consequences and goal setting. Implementing plans having the appropriate skill level in a range of areas to be able to translate job and career planning into reality ADVANTAGES OF CAREER PLANNING

A well structured career plan in an organization helps it to retain those employees whom the company wants and to motivate them fully to use their potentials, talents and capabilities in the best possible ways.

A good career planning system sends out a message that the organization believes in providing fairness and equal opportunities to all its employees with transparency.

Since training and development of employees is an integral aspect of career planning, it prepares more competent professionals in the organization on an ongoing basis. This is advantageous to the organization as well as the employees.

CHALLENGES IN INTRODUCING EFFECTIVE CAREER PLANNING STRUCTURE

Competent human resource is scarce and all the organizations compete for it. Hence attracting, satisfying, motivating and retaining the competent people is a huge challenge.

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On top of it, in situations when the growth opportunities for the employees are less in the organization, meeting the expectations of all the talented and capable persons is an additional challenge.

Yet another challenge in career planning is how to provide support to the marginal or average performers and how to facilitate the separation of the poor performers from the organization in a dignified manner.

ELEMENTS OF CAREER PLANING PROGRAM Though programs differ, four distinct elements of career planning programs emerge. They include (1) individual assessments of abilities, interests, career needs, and goals; (2) organizational assessments of employee abilities and potential; (3) communication of information concerning career options and opportunities with the organization; and (4) career counseling to set realistic goals and plan for their attainment. Each of these elements is discussed in greater detail below. Individual Assessments Individual assessment of abilities, interests, career needs, and goals is basically a process of selfexploration and analysis. Individuals are frequently guided by self-assessment exercises. The self-assessment process is basically viewed as an individual responsibility; however, organizations can aid in this process by providing the employee with materials and opportunities for self-exploration and analysis. A variety of self-assessment materials are available commercially, but a number of organizations, including IBM, Xerox, General Motors, and General Electric, have developed tailor-made workbooks for employee career planning purposes. Individual career planning exercises can be done independently by employees or in workshops sponsored by the organization. Workshops have the advantage of combining a number of career planning elements including self-assessment, communication of organizational career and development opportunities, and one-on-one counseling to ensure that career goals are realistic.

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Human Resource Management Organizational Assessments

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A key issue in career counseling sessions is whether an employee's goals are realistic in terms of organizational possibilities and organizational assessments of employee abilities and potential. Accurate assessments of employee abilities and potential are important to both the organization and the individual. Organizations have several sources of information for making assessments of employee abilities and potential. First is selection information, including ability tests, assessment center test, interest inventories, and biographical information such as education and work experience. Second is current job history information, including performance appraisal information, records of promotions and promotion recommendations, salary increases, and participation in various training and development programs. Organizations have traditionally relied on performance appraisal data as the primary basis for assessing employee potential. Career Information within an Organization Before realistic goals can be set, an employee need information about career options and opportunities. This includes information about possible career directions; possible paths of career advancement; and specific job vacancies. In organizations with informal career planning programs, employees learn about career options and opportunities from their supervisors within the context of developmental performance appraisal interviews. Organizations with more established career planning programs make greater use of workbooks, workshops, and even recruiting materials to communicate career options and opportunities. Career paths have been defined as logical progressions between jobs or from one job to a target position. They can be either traditional or behavioral. Traditional career paths are based on past patterns of actual movement by employees. They tend to be limited to advancement within a single function or organizational unit, such as purchasing, sales, or customer relations. Years of service to the organization largely determine the rate at which advancement can occur. For example, a salesman might expect to advance to the position of account supervisor after five years, to sales supervisor after 10, to district manager after 15, and to regional manager after 25 years of service.

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Human Resource Management

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More flexible patterns of employee career movement are described by behavioral career paths, which are based on analysis of similarities in job activities and requirements. Where similarities exist, jobs can be grouped into job families, or clusters. Thus, all jobs involving similar work activities and levels of required skills and abilities form one job cluster, regardless of job title. Focusing on job similarities across functions and organizational units brings to light new career options for employees and greater flexibility for the organization in utilizing its available human resources. One organization, for example, was able to shift a number of its sales personnel to purchasing positions when sales declined in one major product line and opportunities became available in the purchasing department. This shift was undertaken when a job analysis showed behavioral similarities between the two previously distinct functions. Career Counseling It is in counseling sessions, typically with supervisors and managers in developmental performance appraisal interviews, that most employees explore career goals and opportunities in the organization. Supervisors and managers need accurate assessments of employee abilities and potential, as well as information about career options and opportunities in the organization. HR professionals may be involved in some informal career counseling activities, but basically their role is to support career counseling activities of supervisors and managers. This means providing supervisors and managers with needed information as well as with the necessary training to function effectively as counselors.

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Human Resource Management CASE STUDY ALLIED BANK LIMITED INTRODUCTION

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The function of commercial banking and application of the fundamental principles of the depositor bank relationship have remained essentially the same since about 500 B.C. Bank operation methods and procedures, on the other hand, have undergone a constant process of evolution because of economic growth, the mounting volume of transactions and greater use of banking facilities. As a result of these contributing factors, methods and practices necessary to handle the increased volume of detail work have been developed while other and quicker methods have been adopted in order to cope with the increased volume, much of which has been accomplished without unduly increasing the cost of doing business. During the last twenty years we have experienced a constant transition from the old the new from manual to mechanical methods and procedures from old established practices to current techniques and to a more scientific approach to the solution of problems brought about by day to day changes in business practices. Bank Definition Banks are institution that enjoys the public money doing nothing for the public. According the banking ordinance 1962 sec (6), Banks mean the acceptance of deposit for the purpose the lending or the investment of deposit of money from the public repayable on demand or otherwise withdraw able by cheques, drafts orders and otherwise. History of Allied Bank LTD ABL is the first Muslim Bank established on territory that later on became Pakistan. It was established on December 3, 1942 as Australasian Bank at Lahore with capital of 0.12 million. At

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that time the chairman was Kh. Bashir Baksh. ABLs story was one of the dedication, commitment to professionalism and adaptation to changing environmental changes. The banks history is divided into many phases. During 25 years of united Pakistan the bank advanced forward in all areas of its activities. 1970s were a difficult decade for all banks of Pakistan. In 1971 East Pakistan was separated and Australasian Bank lost its 50 branches and a lot of capital as well. Nevertheless the growth remained steady. In 1974 all the Banks were nationalized including Australasian Bank. The small provincial Banks were merged into Australasian Bank. On 1st July 1974 the new entity was renamed as ABL of Pakistan limited. Then it started its operations as public sector financial institution. Allied Bank objectives 12Main objective of Allied Bank is to earn profit. To provide services to their customers and assistance in the.

Allied Bank Management Banks are managed by board of director or similar group of men who are responsible to the owners, creditors and the government for the well being of their institutions. The government selects all or some of directors of ABL. Management of ABL are given as follows. MANAGEMENT HIERARCHY The management hierarchy represents the different positions and designations in the hierarchy of the ABL. However, this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority and grades.

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Human Resource Management

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Management System of ABL Successful and profitable banking management depends on two principal factors. a. The manner in which the functions of banking, that is the acquiring of deposits, the investing or converting such deposits into earning assets, and the servicing of such deposits, are performed b. The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities.

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Human Resource Management Compensation Strategy Process in ABL

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Compensation Management simplifies and standardizes the planning, modeling, budgeting, analysis, and execution of global compensation and reward policies. Built on the industrys most complete talent platform, Compensation Management enables you to:

Achieve global compensation visibility by replacing spreadsheets and legacy systems with a flexible, centralized, and modern compensation system

Build a culture of high performers by aligning performance, goals, and rewards across an entire organization

Reduce the cost and complexity of compensation administration by optimizing rollups, exception handling, and approvals

Types of Problems: Usually the middle managers face structured problems and they have the authority to deal with them without consulting the top mangers. Apart from this programmed or more complex problems are solved by the top executives. Management Styles and Policies At the moment is the management is following the revamping and reengineering policies. The VSS (voluntary Separation Scheme) is offered to the employees to reduce the number of employee which is first toward reshaping of under new management. CAREER PLANNING OPPURTUNITIES IN ABL Before realistic goals can be set, an employee need information about career options and opportunities. This includes information about possible career directions; possible paths of career advancement; and specific job vacancies. In organizations with informal career planning programs, employees learn about career options and opportunities from their supervisors within the context of developmental performance appraisal interviews. Organizations with more established career planning programs make greater use of workbooks, workshops, and even

PRESENTED BY: IMRAN ABBAS

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Human Resource Management

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recruiting materials to communicate career options and opportunities. Career paths have been defined as logical progressions between jobs or from one job to a target position. They can be either traditional or behavioral. Traditional career paths are based on past patterns of actual movement by employees. They tend to be limited to advancement within a single function or organizational unit, such as purchasing, sales, or customer relations. Years of service to the organization largely determine the rate at which advancement can occur. For example, a salesman might expect to advance to the position of account supervisor after five years, to sales supervisor after 10, to district manager after 15, and to regional manager after 25 years of service. SWOT analyses

External Analysis

Process

Opportunity threats

Identify the organizations mission, goals and strategies

SWOT Analysis
Internal Analysis Strengths weakness

Formulate strategies

Implement strategies

Evaluate

This analysis makes the managers aware of the organizations external and internal affairs and helps them to make safe and strong kind of decisions in the different kind of situation.

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Human Resource Management Strengths

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An old and well established organization Customers are loyal It is a well known organization. Good reputation
Weakness:

Organization is quite behind in the field of IT. its employees lack IT knowledge. Out of 1400 branches only 600 branches provide online banking facility. Overstaffing is serious problem for the organization.
Threats

Other banks have high and new IT technology and easy decision making system. Other banks offer different valuable packages to the customers.
Opportunities

Our Internship Program offers promising students with the exciting opportunity to apply
their classroom learning experience to real life corporate assignments.

ABL provide good opportunities for the employees in developing their careers. ABL is an organization that provides opportunities for its staff to have a challenging and
rewarding long-term career. Conclusion Allied Bank of Pakistan is growing organization in banking sector of Pakistan and they provide career planning opportunities for their internal employees and also externally. Staff of Allied bank of Pakistan is now becoming very much practical with the passage of time. After studying ABL with the purpose of career planning we conclude that ABL is providing a attractive career planning opportunities for everyone without any kind of discrimination.

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Human Resource Management References http://www.abl.com/ http://en.wikipedia.org/wiki/Allied_Bank_Limited https://allied.direct.abl.com.pk/allied.proxy/ Annual Report of Allied Bank of Pakistan 2012 http://www.indiastudychannel.com/resources/116916-Career-Planning.aspx http://www.careerABL.com/resources/116916-Career-Planning.aspx

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