1

OVERVIEW

OF

BANKING PAKISTAN

INDUSTRY

IN

The banking sector has witnessed a dramatic change during the last five years, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. The story begins with the freezing of the foreign currency accounts in 1998, which was a catalyst for the nosedive of the economy into the recession. Some US $ 11 billion of foreign currency deposits came under threat and resulted in flight of capital to havens outside Pakistan. With the rupee under pressure and market liquidity going down, the interest knee-jerked upwards, investors confidence plummeted and the industry went into a glide mode with the wait and see attitude. After the 9/11, the international scenario changed dramatically and with it the global perception of Pakistan, which suddenly became a much sought after the member of the war against terrorism. Apart from dome direct benefits such as an improvement in the term of trade with the European Union (EU) and restructuring of substantial part of the foreign debt, perhaps the greatest economic benefit came from the clamp down on the informal channels of foreign remittances and investigation into the movement and sources of any large amounts held abroad. This resulted in a flight of Pakistani Capital in the reverse direction and a large increase in the home remittances. This in turn led to a strong Rupee and an increasingly liquid market. The Sate Bank of Pakistan (SBP) also took measures to bring down the interest rates and the discount rates reduced from 14% p.a. in July 2001 to 4% in April 2003. However, despite the low interest rates, the global recession and local uncertainties stifled credit demand and liquidity further accumulated. Apart from the narrowing of spreads due to the fall in the interest rates, deregulation of foreign currency transaction forced banks to

quote highly competitive prices to tight market, resulting in a further erosion of profits from traditional source. Mean while, State Bank of Pakistan (SBP) moved ahead to setup an environment to ensure healthy and secure banks, through good governance discipline, capital adequacy requirements and higher disclosure. All the commercial banks operating in Pakistan now have a minimum capital on One Billion Rupees. Due to unfavorable market conditions and more demanding regulatory environment, the weaker players, which had only tapped limited markets, went up for sale. In the foreseeable future we are likely to see more banks being sold or merged. On the other hand, the managements of the big four banks showed good results through better management, and adopted a more aggressive and accommodating stance towards the markets they were serving. These banks are now posing a bigger challenge to the smaller banks. Due to their greater reach, increased focus on customer needs, improved response times, and increasing use of technology. In this new era, the foreign banks will also witness serious threats to their traditional markets, i.e corporate financing, from the invigorated large domestic banks and fast growing new private sector banks. Most banks will focus more intently on retail banking products such as personal loans, small business finance, mortgages and investment products. The advent into the retail will only be hampered by scarcity of skilled human resource with exposure in handling consumer products especially assets. The consumer will also be reached through technology dependent channels of distribution such as ATM, Debit and Credit cards and the Internet. The other potential market that the domestic banks will start to explore is the rural Pakistan, with a renewed interest in financing agriculture and related activities. The banking industry will also be driven towards more market tradable instruments, especially for its corporate clients, including short and long term paper.

BACKGROUND

ABOUT

THE

BANK

History of Bank Alfalah starts from Bank of Credit and Commercial International BCCI. BCCI was incorporated in 1972 with a paid up capital of US $ 2.5 million. This bank was operating successfully but an international conspiracy compelled its management to stop its operations. BCCI was liquidated in 1991. At that time bank was operating in more then 69 countries of the world. Branches of BCCI in Pakistan at that time were taken over by Ministry of Finance and SBP. Later on banks started its operations with the name of Habib Credit and Exchange Bank HCEB. HCEB was incorporated in 1992 as a public limited company under the companies ordinance, 1984. HCEB was privatized in July 1997. Management was taken over by the Abu Dubai consortium and it was renamed as Bank Alfalah on 25 February, 1998. THE BANK Bank Alfalah during the past five years, has assumed a brand new identify thanks to a progressive and forward looking approach and revived commitment. Since privatization, the Board and Management of the Bank have implemented strategies and policies to carve a distinct position for the Bank in the market place. In a bid to satisfy Bank Alfalah's shareholders and valued clients, the management initiated the process of realization of the Bank's vision by consolidating its financial position and creating a large and diversified business base. The Abu Dhabi Group, principal owners of the Bank, played a pivotal role in helping the Bank cross major milestones as a single-source financial services provider of Corporate and Retail banking solutions. THE MANAGEMENT Alfalahs management is known for their hard work, innovative spirit and dedication to create exceptional value of the Bank's clients and to keep the Bank ahead of competition. With a team of talented, and dedicated professional bankers, the Bank commits all its energies, resources and time to cater to banking and financial needs of its valued clients. THE PRODUCT LINE Our performance over the years has seen us excel even when faced with challenging economic conditions. This has been a result of our highly prioritized and specifically tailored products and services designed to suit the needs and preferences of our highly valued customers. True to its strategy of becoming a highly effective financial

supermarket, Bank Alfalah provides a complete range of products to its corporate clients, commercial enterprises and to the consumers. To the larger corporate clients Alfalah offers syndicated loans and structured financial products. For commercial entities we offer current and saving accounts, on-line services, commercial credit, trade finance and speedy and personalized service. Our Consumer Banking product range includes successful products like Car Finance, Rupees Travelers Cheques, Anmol Saving Certificates, Home Loans for NRPs, Online Banking and Money Gram Remittance service. To further strengthen our customer's trust in our innovative abilities, Bank Alfalah is soon going to launch a new range of products including Credit Cards, Leasing, ATMs Phone Banking and Debit Cards. Our primary commitment is to understand and support our client's business objectives and financial needs. At Bank Alfalah, all this is ensured through constant R & D focus and training & development of staff. THE VISION Bank Alfalah professes to be a financial supermarket with innovative products to suit the needs of our corporate customers, commercial enterprise and consumer banking clients. Our Vision is to become a leading financial institution offering complete banking solutions to our clients, and to maintain a systematic focus in areas where we have a competitive advantage. Our focus is on improving performance in each of our businesses to achieve consistent and superior returns for our highly valued stakeholders The MISSION Bank Alfalahs mission is to maintain a competitive edge in quality banking customer service and profit performance. Their activities are geared towards making the institution a responsible corporate citizen. The emphasis is on Quality and Innovation will remain our key mission statement. We will continue to strengthen our position as the leading provider of quality financial services in Pakistan. THE PHILOSOPHY Excellence in Service Quality Performance Product Innovation

STANDARDS Summarized below are standards to further ensure that each member of the BAL family understands what is expected from him/ her in carrying out daily Banking activities. These standards must always be upheld in day to day activities of individual employees in conducting Banks business. The standard of business conduct and ethics, which the Bank expects from all of its employees, is a condition of employment with the Bank to be reviewed annually at the time of performance appraisal of an employee. RESPONSIBILTIES OF INDIVIDUAL DIRECTORS A director shall not be associated with illegal activity especially relating to Banking business, nor he would engage himself in the business of stock exchanges, money changer, or to be a member of stock exchange or corporate brokerage house. A director shall: Disclose any conflict of interest Notify in writing the company secretary, if he or his spouse intends to sell or buy or take any position in the shares of the Bank. A director would always adhere to the highest moral conduct & best business practices and: Must devote necessary time and attention for fulfillment of responsibilities. Be aware of the Banks business, financial conditions and contribute meaningfully to the Boards objectives. Attend Board Meetings. Request for additional material and explanation when needed. (do not hesitate to ask questions) Understand audits and supervisory communication Exercise independent judgment Remain focused on the Banks objectives. OVERALL RESPONSIBILITIES OF EMPLOYEES Each Bank employee has a responsibility to: Conduct Banks business with honesty, integrity and in a professional manner. Avoid any action that may be viewed or be repugnant, unethical or unlawful on his / her part by the customer / public at large or the Bank itself.

To understand and comply with the legal/regulatory requirements and internal policies and procedures of the Bank that apply to the duties assigned to the employee. Avoid any activities that could involve or lead to involvement in any unlawful or unethical governance practice. Avoid participation in any political or subversive activities and abstain from gambling, betting and wagering contracts. Personal conduct towards the Bank, the other employees and customers of the Bank should be exemplary and he/she is expected to behave with decorum both during office hours and at other times. Safeguard the confidential information of the Bank and its customers. Avoid actual or potential conflicts of interests in transactions on behalf of the Bank. Provide and accurate and reliable information in records submitted. Promptly report to the Bank any violation of law or ethical principles of the Bank and its policies that come to the employees attention.

DIFFERENT
Credit Division

DIVISIONS

OF

THE

BANK

The credit division primarily concentrates on the evaluation and appraisals of the credit proposals through a team of highly experienced professional bankers at all the levels. The evaluation system comprises of well-designed multi-tier credit appraisal procedures with extensive guidelines covering the qualitative and quantitative aspects of credit evaluation. The emphasis has always has always been on the diversification of Banks risk assets to avert large-scale industry and single party exposures. Most of the advances are of shortterm nature on a secured and self-liquidating basis. The credit administration unit of the Division constantly monitors the existing credit portfolio and ensures timely action and constant follow- up to regularize/ strengthens any weak areas. Despite the slowing of economic activity, and the consequent subdued demand for credit in the country, the bank made significant headway during the year in enlarging the size of its assets base while maintaining adequate liquidity and ensuring the quality of risk assets. A special Asset management unit operating at the Credit Division closely monitors the problem loans of the bank to ensure a low ratio of non-performing loans by taking necessary remedial measures for immediate recoveries.

Treasury Treasury activities comprises of almost client backed transactions, emanating largely from foreign trade business. The treasury is quite active in both sections of the inter bank market i.e. foreign exchange and money market. The Bank continues to maintain positive and healthy liquidity. The surplus liquidity is mainly kept in fixed income securities, issued by the federal government of Pakistan that can be easily converted into cash, if necessary. Foreign Trade Division The Foreign Trade Banking Division extends support to growing network of branches in the smooth handling of the Banks foreign trade and exchange business. Besides looking at the opportunities for extending operations in the international markets, the Division also ensures a meaningful business ties with Banks valued correspondents globally. Presently they have 86 correspondents compared to less than 35 years ago and with whom they enjoy substantial lines of credit. Consumer Banking Division (CBD) The CBD is responsible for developing and managing brands that serve the investment need of the consumer market. It focuses on deposit mobilization and provision of value added services based on modern technology. Keeping in mind tough competition in the market, the Division continuously makes an effort to provide value added services and products to its clients. In the arena of consumer banking, the Bank has carved a niche for themselves in the market place, with their products like Car Finance, Rupee Travelers Cheques, Credit Cards, Home and Car loans for the U.A.E based non-resident Pakistani. IT DIVISION The IT division has been the most visionary pf all the Banks operating units. It has established Bank Alfalah as the leading provider of electronic services and solution to its customer, and solution to its customers, and continues to lead in innovation and introduction of new technology based products. It is clear that one of the main drivers of the information age is the integration of historically disparate concepts and approaches into an interrelated environment that offers more value then the sum of its parts. Traditional distinctions and boundaries in technologies, access to information demand for services, organizational structures ad processes are fading away. Everything is becoming structurally integrated into networks that exchange information or services among individuals, groups, or institutions on a real time basis.

Obviously, these technical and cultural changes determine how successful organizations compete in this dynamically changing period. IT planning and management has moved

from an independent tactical activity to an essential part of an organizations strategic processes. The demand and expectation level of internal ad external customers for information requires organizations to plan and provide integrated IT service and that is something, which the IT committed to deliver. The division also plays an essential role in the development of banking software and provision of computer hardware to all business units, and also engages in the development of tecn0ology based value added services. ITD ha also played a pivotal role in the development and launch of Internet Banking, ATM services and Debit Cards. INVESTMENT BANKING DIVISION The investment banking division is responsible for developing and managing brands that serve the investment needs of the consumer market. It focuses on deposit mobilization and provision of value added services based on modern technology. Keeping in mind tough competition in the market, the division continuously makes an effort to provide value added services and products to its clients. HUMAN RESOURCES DEPARTMENT Human resource Department (HRD) is strategically the most important contributor to organizational effectiveness. It is responsible for human resources management., including areas like recruitment, training, performance appraisal and career development. HRD acts on the conviction that the people are the most important assets for the bank. The division tries to create an environment for mutual trust and dignity. It plans to hire, develop and retain the human resource base with the right level of skills and talent to meet current and future business needs. Staff is given on the job as well as off the job training in diverse area of banking and management. INTERNAL AUDIT DIVISION (IAD) The division is the front line when it comes to monitoring and promoting internal controls, risk management and governance. The call for stronger internal audit function has never been greater than it is today. In these fast paced, need- answers now environment, IAD emphasis on doing more with fewer resources, looking at the new ways to improve effectiveness in key areas including risk control and governance. The consultative outlook of division is cultured to not only ensure compliance to the policies, laws, directives and prudential regulations but also provide assistance to the branches and management in ensuring the business objectives of the bank. The division maintains an 9

appropriate internal audit infrastructure, tailors audit approaches to each level of business with in the Bank using electronic platforms and focusing on collaboration with senior management creating value addition. The staff being the asset of the Division is also being groomed through continuing professional development to possess tangible skills in the areas of corporate finance, from strategy to control, risk assessment, quantitative methods and reporting to have vision whereby it can see whether it can see where the things may go wrong. The branches are audited modern methodology by assigning risk matrix to each level of business and rating the branches according to their performance on compliance to the policies, law and regulation. Each branch is awarded separate rating on operations, credit administration and credit quality. CREDIT RATING With a view to safeguard the interest of prospective investors, depositors and creditors it shall be mandatory for all banks to have themselves credit rated by a credit rating agency on the approved panel of the State Bank of Pakistan. Foreign banks which are credit rated by M/s. Standard & Poor, Moodys and Fitch-IBCA and have a minimum rating of A3 / A- and above shall be exempt from the application of this requirement. However, all other foreign banks have to go through credit rating process in Pakistan. The credit rating will be an ongoing process i.e. credit rating should be updated on a continuous basis from year to year and the rating report be submitted to the State Bank of Pakistan within a period of one month of the last notification of rating. Banks listed on the stock exchange (s) will make disclosure of their credit rating to the public within one month of the last notification of rating. All other banks not listed on the Stock Exchange(s) will get themselves credit rated, however, it shall be mandatory upon them to make their credit rating public within a period of two years from the date of their first rating and thereafter annually within one month of the last notification of rating. BANK RATING In pursuance of state Bank of Pakistan directive to all commercial banks to get themselves rated. Bank Alfalah also undertook the exercise with PACRA (Pakistan Credit Rating Agency). The Premier rating agency, which is an affiliate of IBCA, rated us as AA- for long term and A1+ for long term and A1 for short term. Both ratings are investment grade and expectation of credit quality and very low expectation of credit risk. The ratings are applicable to senior unsecured creditors of the Bank.

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PRODUCTS
CORPORATE BANKING

OFFERED

BY

THE

BANK

Current Account Individuals Partners, companies associations, Clubs, Societies, and NGOs are eligible to open current account with the bank. Salient features of the current account are Minimum initial deposit Rs.10,000/ Minimum average balance Rs.10,000/ There is no restriction on number of transactions. There is no limitation on amount of withdrawal. Foreign Currency Account Both resident and non-resident Pakistanis as well as foreigners can open foreign currency accounts. Foreign currency accounts can be opened either as savings accounts or current accounts. CONSUMER FINANCING PLS saving Account Saving account are designed to mobilizing savings primarily from a large number of individuals and household. any one or more individuals or partners can open a PLS saving account with the Bank. Salient features of PLS accounts are as follows. Minimum initial deposit is Rs.5,000/A smaller initial deposit can be accepted at the discretion of branch management if average deposit is expected to remain above RS.5,000/ Profit on PLS saving account is calculated on minimum monthly balance basis. Profit on PLS saving accounts is calculated on minimum monthly balance basis. Profit rates are announced and paid biannually in January and July respectively. Royal Patriot Account The main feature of the Royal Patriot Account is o Short to long term deposit. o Choice of terms 1,3,6,,12,&24 months. o Minimum balance required-Rs.25,000/o Profit paid on maturity of respective term. 11

o Profit rates increase with tenure and amount.

ANMOL Deposit Certificates Giving you amazing flexibility of investment, ANMOL also ensures that you have the flexibility to encash your certificates as and when you wish, without paying any penalty. Yes ANMOL Deposit Certificates can be encashed at any time without penalty. Infect you can earn profit till the last day of encashment. With ANMOL Deposits Certificates, yes you can encash them before maturing. That is why ANMOL deposit is the best certificate for your savings today. ANMOL gives you the flexibility to save short and long term, and your profit continues to grow every day. If you encash your certificates prematurely, you will still earn profit on the number of days the certificates have been held by you. So if you encash your certificate after 7 months and 2 days of purchase, you will earn profit as per tenure completed, along with profit calculated on a per day basis for the balance days (as per the Profit Calculation Chart). So you never lose your profit for even a single day with ANMOL Deposits Certificates ANMOL Deposit Certificate are fully secured by Bank Alfalah Ltd. If the certificates are reported lost or stolen, we will re-issue them FREE of cost .In addition. They also provide FREE CUSTODIAL SERVICE of your certificates at Bank Alfalah for your convenience and security. Monthly Income Account More profit every month now you can sit back and relax while your money grows! Alfalah Monthly Income Account, now offers you more profit and ensures a steady stream of monthly income for you. Profit Rs.855/- per month Variable terms 1,2 & 3 years Profit credited directly to your account Minimum deposit Rs.25,000 or multiples thereof Loan facility Network of 42 branches in 20 cities. Foreign Currency Account Both resident and non-resident Pakistanis as well as foreigners can open foreign currency accounts. Foreign currency accounts can be opened either as savings accounts or current accounts.

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Rupee travelers Cheque Benefits and features of Alfalah RTC's are as follows: Convenient denominations available Rs.1,000 Rs.5,000 & 10,000

Buy Travellers Cheques and get rewarded Earn points daily and win great gifts. Encashment Commission Receive a commission of 0.15% if you encash your TC's after 7days at any of our branches.

Maximum Security Features Special embossed intaglio printing in the UK, Alfalah security thread and Alfalah watermark. Just some of the advanced features that make your TCs secure.

Fully refundable You can refund your TC's without any penalty or loss Transferable and Endorsable You can transfer and endorse your TCs over to anyone Unlimited validity Bank Alfalah TC will always remain encashable. No account Needed You don't have to be an account holder to get our TCs' benefits.

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SAFE DEPOSIT LOCKERS Bank Alfalah also provides safe deposit lockers facilities to its customers for safe keeping of their valuables like documents, securities and jeweler etc. Important features of lockers facility are as follows: Various sizes to choose from small to extra large: small, medium & large. Annul locker rent ranges from Rs.1, 000/- to Rs.3, 5000/-.

Locker rent is waived for customers maintaining a deposit of Rs.2 million or above in a rupee current account or above US $25,000/- in a current account or US $ 50,000/- in a saving account CONSUMER FINANCE Car Finance Alfalah Car Financing is specially designed for you with easy affordable and flexible installment plan. Easily affordable & flexible installments. Flexibility of adjustment at any time during the tenure. Quick processing Minimum down payment Minimum insurance. Eligibility Yes you get a car loan form bank Alfalah to purchase a brand new car if you are: Pakistani National Identity Card holder Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a business person at the time of maturity of the loan.) Salaried, Businessman or self employed

14

Loan Limit Minimum amount is Rs. 200,000/& Maximum amount is Rs.2, 000,000/. Time Period The loan can be availed from 1 year to 5 years with early adjustment facility at any time before the maturity. Down Payment 20% of the value of the car.

Other Charges You have to pay a one time fee of Rs.3, 000/- being amount of processing and documentation charges and first years insurance premium. Insurance Bank Alfalah has made arrangements with the top insurance companies who are offering special lowest insurance rates for Bank Alfalah clients. (First years insurance has to be made in advance and the remaining years in equal monthly installments). Repayment You will repay the car loan by making easy equal monthly installments in Dirham to Alfalah exchange company in the form of post dated cheques. Security The car is the security ,which will be hypothecated in favor of the Bank and a lien will be marked with the registrar. Documents Required Two Passport size photographs.

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Copy of National ID Card. Bank Statement for the last six months. Salary Certificate (in English) specifying the name , date of joining, designation and salary details (for salaried individual).

Credit Cards Revolving credit facility, allowing you to repay your card outstanding over time, at your own convenience. Cash withdrawal in local currency at Visa and MasterCard linked ATMs across the world. Silver and Gold cards to suit your lifestyle and needs. Attractive rewards programs.

Affinity and co-branded credit cards that give you additional benefits from our partners.

Personal Loans Bank helps you to be in control of your own finances. Personal Loans, without any guarantees or collaterals, are available to you to meet your specific credit needs. Choose our Installment Loan or Revolving Loan, whatever suits you best. Whether you're planning a vacation, re-decorating your home, paying for your child's college education, or simply wish to have a standby line of credit for unforeseen expenses, Standard Chartered Bank's Personal Loans can help you fulfill your dreams. ATM

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FAST CASH WITHDRAWAL CASH WITHDRAWAL PIN CHANGE BALANCE INQUIRY MINI STATEMENTS Online Banking Bank Alfalah is one of the few banks in Pakistan that offers On-line Banking facilities through most of its countrywide network of branches. Customers have the convenience of walking into the nearest branch of Bank Alfalah in any of the 29 cities of Pakistan and operate their account

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HUMAN

RESOURCE

MANAGEMENT

The policies and practices involved in carrying out the People or Human Resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising 18

The concepts and techniques need to carry out the people or personal aspects of management job are: Conducting job analyses (determining the nature of each employees job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment

HRs Definition at Bank Alfalah:

We Are Struggling For People.

HRM Department & Bank Alfalah

Like other organizations HRM department acts as the mind of the organization. Without the HRM department Bank Alfalah cannot imagine being able to function. At Bank Alfalah, HRM has great significance, everybody depends on this department for the entire organization to work and succeed in its mission.

CLASSIFICATION OF HR DEPARTMENT

19

HR DEPARTMENT

HR Management

Recruiting & Selection

Training & Development

Retention & Motivation

RESPONSBILITIES OF HR OFFICER: Following are the responsibilities of HR Officer in Bank Alfalah: Recruitment And Selection Policy Making Retention Program Improve Working Relation Of Employees

HRM Management Responding To Changing Environment: Bank Alfalahs HRM Management is responding to changing environment by Follow Customers Needs Adopt Continuous Changes Decentralized Organization

COMPETITIVE ADVANTAGES: Bank Alfalah has following competitive advantages over its competitors:

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Strong Pay Structure Retention Program All Banking System Based On It Select People From Top Universities Account EI Has 30 Years Work Experience

JOB ANALYSIS
The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it Job Analysis includes: Job Description Job Specification Job Description: A list of jobs duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities Job Specification: A list of jobs human requirements, that is, the requisite education, skills, personality, and so on

Methods Of Collecting Job Analysis Information

There are two methods of collecting Job Analysis Information: Interviews Observation

INTERVIEWS

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A procedure designed to obtain information from a person through oral responses to oral inquiries Who Conducts Interview? Interviews are taken by the branch HR head responsible for recruitment and selection Types Of Interviews Taken: Structured interview only Structured Sequential Interviews Panel Interview

Criteria For Selecting Candidates: Following is the criteria for selecting candidates in Bank Alfalah based on: Communication Skills Present Personality Educational Background (etc.) Skills And Competency

Interview Questions
Why Should I Hire You? Why Do You Want To Work For Us? Whats Your Great Strength? Whats Your Great Weakness? How Much Salary Do You Expected From Us? Where Do You See Yourself In 5 Years?

RECRUITMENT

22

The development of a pool of applicants for jobs in the organization Sources Of Job Recruitments: Following are the some sources of Job Recruitment in Bank Alfalah: By Universities By Website By Coaching By Newspapers

Recruitment Process: Following are the recruitment processes in Bank Alfalah: 1.) Assess need (strategic planning and tactical planning) 2.) Create a pool of candidates: 3.) Screen out candidates: 4.) Make selection 5.) Evaluate recruitment process: 1.) Assess need (strategic planning and tactical planning) There is no fixed quota of number of employees to be recruited, it depends on need and the strategic (organizational) and tactical (branch level) requirements. 2.) Create a pool of candidates: The prospect candidates are attracted through advertisement in the newspapers, on the website online and also the walk in. 3.) Screen out candidates: Through interviews and tests they screen out the less attractive candidates.

4.) Make selection:

23

After further interviews and other processes the final candidate is selected. Questions in an interview are made by doing proper job analysis of the job. That includes identifying the job duties and requirements. 5.) Evaluate recruitment process: Evaluate effectiveness of recruitment by comparing the results to expected results.

Types Of Recruitment
There are two types of recruitment in Bank Alfalah: 1. Internal 2. External 1. Internal: Includes recruiting of already existing employees for new jobs within the organization 2. External: Includes bringing new blood in an organization. Recruiting people who are new

Internal Recruitment in Bank Alfalah

Bank Alfalah normally Less emphasis on Internal Recruitment Existing employees can respond to new job offers as externals Performance appraisals

External Recruitment in Bank Alfalah

In Bank Alfalah external recruitment is on Need basis No yearly or monthly recruitments Every branch has its own HR department Head office sanctions recruitment for new employees

Adds in leading newspapers (Dawn, Jang) College Recruitment (under planning) 24

Online application forms Short listing Interviews Decisions made through head office No help from recruiting agencies

Executive Recruitments: In Bank Alfalah, Executive recruitments are done by CEO. Recruitment of MTOs (Management Training Officers): In Bank Alfalah, recruitment of MTOs is done on Yearly Basis Recruitment of Internees: In Bank Alfalah, recruitment of Internees is on > Walk-ins > Letter of recommendation from college

Recruitment

Orientation

Selection

New Employee

Training

OREINTATION

25

The orientation program of Bank Alfalah contains: Introductory Lecture Printed Employee Hand book in Bank Alfalah Time Duration Familiarize new employees with their new jobs, work units and organization in general.

TRAINING
The process of teaching new employee the basic skills they need to perform their jobs. Basic Steps in Training: Following are the basic steps in training employees in Bank Alfalah: Need Analysis Instructional Design Validation Implementation Evaluation and follow up Training Mangers and faculty is hired for training purposes. Training Mangers are in their respective head offices

The Training Centers Of Bank Alfalah: Bank Alfalahs training centers are in Karachi & Lahore. These training centers are responsible for providing multi-level high quality training programs in following areas: - Consumer banking operations - Credit marketing & credit proposals - Credit administration/documentation

- Trade finance operations

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- Marketing & selling skills - Customer service skills - Performance appraisal skills - Time management & personal effectiveness - Obligatory for each staff member of the bank to attend at least one training program.

TWO SCENARIOS OF TRAINING

Training Calendar: In Bank Alfalah, Head office devises a calendar according to which they train their employees Need Basis: In Bank Alfalah, Branch Manger realizes that specific department lacks in some skill.

TWO TYPES OF TRAINING

On the Job Off the Job

Employee

On The Job Training: 27

Training a person to learn a job while working on it Off The Job Training: Training an employee to learn a job while providing him a class room environment

ON THE JOB TRAINING

On The Job Training in Bank Alfalah is done by Making teams of new employees with a few old specialized Employees. Acquaintance with day to day procedures Contribution to overall productivity. Lower cost Lower Time

Management Training Officers (MTO) Training Program: In Bank Alfalah, MTOs training program is 3 months On The Job Training & 9 months Off The Job Training.

OFF THE JOB TRAINING

In Bank Alfalah, Off The Job Training is done by In-house training ,done at least once a year Employees from all over Pakistan attend seminars and courses. Employees are tested after the completion of the course Specialist trainers are hired Provide a proper learning environment to the employees

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Professional faculty is hired Increases employee loyalty Labor productivity is zero Cost is high Time is consumed

Training & Development: In Bank Alfalah, employee is trained & developed in following different operations: Consumer Banking Operations Credit Marketing & Credit Proposals Credit Administration/Documentation Trade Finance Operations Marketing & Selling Skills Customer Services Skills Performance Appraisal Skills (Self Appraisal) Time Management & Personal Effectiveness

PERFORMANCE APPRAISAL SYSTEM

Evaluating an employees current and / or past performance relative to his or her performance standards The performances of employees are appraised yearly at Alfalah Bank. HR head said that Performance appraisal helps us in estimating employees current performance, setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies.

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APPRAISAL METHOD AT ALFALAH

The Appraisal Methods at Bank Alfalah are 1. Self Appraisal Method Ratting Evaluation 2. Problems During Appraisal Unfair Assessment (Bias)

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

PERFORMANCE STANDARDS AT ALFALAH

Alfalah Bank Has laid down the following Performance Standards: 1-Demonstrates Commitment 2-Aligns Activities 3-Promotes Alfalah Long Term Objectives

MANAGING CAREER & FAIR TREATEMENT

In Bank Alfalah, Managing Career & Fair Treatment is based on: Promotion Decision How To Handle Transfer Communication At Alfalah Manage Dismissals

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PAY PLANS & INCENTIVES AT ALFALAH

Pay Plans: 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. Compensation Plans for Employees: In Bank Alfalah, compensation plan for employees includes: Basic Salary Bonuses Medical Facilities Allowances Reimbursements Other Long Term Incentives

Incentive Plans: In Bank Alfalah, incentive are provided to Managers and Executives Middle and Lower Level Employees

EMPLOYEE BENEFIT & SERVICES

The employee benefits & services provided by Bank Alfalah are Health & Life Insurance Paid Annual Vacations, Leaves, Holidays Health Insurance Of Parents Pension & Provident Fund

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Discount On Company Products Annual Bonuses Educational Plans Social Events Customized Services Creative, Learning & Healthy Environment Highly Qualified, Experienced & Committed Staff Profit & Gain Sharing Plans

Financial Benefits: The financial benefits provided by Bank Alfalah to its employees are Severance Pay Severance Pay is given according to 1. Policy 2. Give Full & Final Settlement 3. Half Salary As A Complementary (Optional) Supplemental Unemployment Benefits Supplemental Unemployment Benefits are given 1. During Annual Routine Audits 2. Other Privileges Insurance Benefits: Bank Alfalah gives insurance benefits on Workers Compensation Complete Life Insurance Hospitalization & Medical Insurance No concept of HMOs & PPOs... (considering)

Other Benefits: Other benefits provided by Bank Alfalah to its employees are Pregnancy Compensation

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2 Bonuses For Each Employee Faster Promotion Introduction Of MENTORS Bank Alfalah MOHTISIB Staff Suggestion Scheme Family Community Concept Salary Of Own Choice Job Rotation Facility Prizes & Gifts Refreshment Packages Short Courses & Trainings + Training Material Traveling & Stay Allowances Communication Benefits

Retirement Benefits: Bank Alfalah gives retirement benefits on the basis of Age Pension Plans Provident Fund Facility Early Retirement Window No-golden Offerings & Defined Contrib. Plan No-social Security & Deferred Profit Sharing

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Services Benefits: Following services benefits are provide by Bank Alfalah to the employees: Introduction Of MENTORS (HR REPRESENTATIVE) Counseling Services Financial, Career, Job-placement, Grievances Bank Alfalah Mohtisib Lunch & Learn Program Employee Transportation Educational & Training Subsidies Flexible Benefits Programs (Few-limitations) No-subsidized Child & Elder Care

Employee Safety & Health Contribution

Bank Alfalah is Strict About Occupational Safety Laws Obeying The OSHA Standards Major Responsibility Br. Manager Routine Safety Audits Inspection & Citations By Head Branch Managing Proper Responsibilities & Rights Of Both Employer & Employee

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Avoiding the Causes Of Accidents: Bank Alfalahs management plays an important role in avoiding the three causes of accidents Unsafe conditions Unsafe acts Accident prone people

HEALTH PROBLEMS & REMIEDIES

Following are the steps that taken by Bank Alfalahs HR Department to solve the health problems in the organization and make possible remedial changes Smoke Free Environment Role Of Mentors ; Regarding Job-stress , Burn-out , Health Conditions Remedies For VDTS & Other Tools Vaccinations & Health Treatments

Other Precautionary Measures: Other precautionary measures taken by Bank Alfalah for the safety of employees are 1. 2. 3. 4. 5. 6. Personalized Attention To Employees Angry Employees Management Temporary Stop The Working Counseling Real Root Problem Use Of Personal Skills Professional Attitude Adopted Future Avoidance

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OBSERVATION

HRM managers at Bank Alfalah are performing a great job as far it is concerned

motivating them and looking after them. Along with the other managers and employees

HRM managers are also doing a great job in achieving company goals and objectives.

There is a very calm and friendly atmosphere at Bank Alfalah because of the HRM

department and their policies for keeping their employees happy, productive and

efficient.

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QUESTIONNAIRE
1. How you prepare the job description? Ans:a) Interview b) Questionnaire c) Observation 2. Do you move the workers from one job to another? Ans:- Yes, after 1-2 year 3. Do you record that shows the present performance and promotability of inside candidates? Ans:- Yes 4. How do you recruit the employees? Do you use job posting Ans:- Yes 5. Do you get the services of employment agencies fir hiring? Ans: Yes 6. If you get the services then from which agency? Ans:- NLI, PHONEX 7. Is your criteria same for both male and female or there is any discrimination? Ans:- Same 8. Do you take written tests or use work sampling? Ans:- Written Tests 9. Do you use video based testing? Ans: No 10. Do you give incentives? Ans:- Yes 11. Do you pay on the basis of hours worked or irrespective to the hours worked? Ans:- No 12. Is overtime pay given to the employees if they work overtime? Ans:- No 37

13. When an individual performs well, then do you increase his/ her pay? Ans:- Yes, after 1 year 14. Do you have part time employees? Ans:- No 15. Do you go to colleges for recruiting? Ans:- Yes 16. Have internees ever become permanent employees? Ans:- May Be 17. Do you administer the test with respect to performance? Ans:- No 18. Do you encourage employees not to limit themselves on what is written on their description ? Ans:- Yes 19. How do you advertise the job? Ans:- Most of the time through Internet 20. Is promotion based on seniority or competence? Ans:- Both 21. Are there specific rules for promotions? Ans:- Formal rules 22. Have you career development programs like facilitating the employees to get education, training for other jobs, etc? Ans:- Yes 23. What type of interview is conducted? Ans:- Structured Interview Structured Sequential Interview Panel Interview 24. How you develop the career of your employees? Ans:- Through Promotions & Incentives 25. How you rate the applicants in the interview? Ans:- Like Good, Average etc

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