AcknowledgementAcknowledgement

Thanks and again thanks to Allah Almighty,

who pulled us through the times when every stone was

turned against us.

He and only He dawned new horizons for us when the

darkest fog made us blind,

who is really the Best Manager of the entire universe.

Without His consent, nothing is possible.

Thank You Allah Almighty.

Thanks from the recesses of our hearts to our to

the Most Respected Teacher, Professor Naveed Iqbal

Chaudary

for his Untiring efforts, His Valuable Guidance and Precious

Advices

are rare Assets for Us.

We would also like to pay a very special Thanks to Mr. Malik

Javed (Finance Manager) and Mr. Saqib Hassan

(relationship officer) for giving us some moments from their

busy routines and providing us such valuable information.

1

Dedicated to:Dedicated to:

Our Honorable Teachers & Loving Parents

Whose,Love, Affection, Motivation, Patience, Support

& Spiritual Inspirations

Give us Encouragement,To all those People who have quenched for Knowledge,To all those who have dedicated their lives to others,

To all of those who have served and sacrificed forSake of Freedom

To all of those people, who may be gone now,But they will never be

Forgotten....

2

Purpose of the Study:Purpose of the Study:

“Practice makes the man perfect” is a proved saying. So, the purpose of this project is to get

the know how about the working procedure of H.R.Department.

It is purely study base project, which we have accomplished by the grace of ALLAH.

We learned lot of experience and so more.

3

EEXECUTIVEXECUTIVE S SUMMARYUMMARY

Allied Bank was the first Muslim bank to have been established in

Pakistan.

Established in December 1942 as the Australasia Bank in Lahore with

a paid-up share capital of Rs. 0.12 million under the Chairmanship of

Khawaja Bashir Bux, the Bank attracted deposits equivalent to Rs.

0.431 million in its first eighteen months of business.

At the time, the Bank’s total assets amounted to Rs. 0.572 million.

Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5

billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170

billion.

4

CCOMPANYOMPANY PROFILEPROFILE

Type PublicFounded as "Australasia Bank", 1942 Lahore, PakistanHeadquarters Lahore, PakistanIndustry Finance and InsuranceProducts Financial Services

Revenue PKR (▲) (2004)

Website www.abl.com.pk

5

IINTRODUCTIONNTRODUCTION

Allied Bank Limited was the first bank to be established in Pakistan. It

started out in Lahore by the name Australasia Bank before

independence in 1942; was renamed Allied Bank of Pakistan Limited

in 1974 and then Allied Bank Limited in 2005.

In August 2004, because of capital reconstruction, the Bank’s

ownership was transferred to a consortium comprising Ibrahim

Leasing Limited and Ibrahim Group.

Today, with its existence of over 60 years, the Bank has built itself a

foundation with a strong equity, assets and deposit base. It offers

universal banking services, while placing major emphasis on retail

banking. The Bank also has the largest network of over 700 online

branches in Pakistan and offers various technology-based products

and services to its diverse clientele.

6

MMISSIONISSION

To provide value-added services to our customers

To provide high-tech innovative solutions to meet

customer requirements

To create sustainable value through growth, efficiency

and diversity for all stakeholders

To provide a challenging work environment, and

reward dedicated team members

To play a proactive role in contributing towards the

society

VVISIONISION

To become a dynamic and efficient bank providing integrated solutions and the first choice of bank for all customers.

VVALUESALUES

Integrity

Excellence in Service

High Performance

Innovation and Growt

7

HistoryHistoryThe Bank’s journey has been about dedication, commitment, professionalism and adapting to environmental changes, leading to its immense growth and stability.

It is these factors that have made it a Bank the rest look up to.

The Pre Independence History (1942 to 1947)

In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession.

Mr. S.R. Jariwalla (sitting in the center) A legendary figure in the history of the Bank.

It was particularly upsetting for Khawaja Bashir Bux to hear that “Muslims could not be successful bankers”. He decided to step-up to that challenge and take the lead in establishing this first Muslim bank by the name Australasia Bank Limited in Punjab, which was to become Pakistan in December 1942.

The initial equity of the Bank amounted to Rs 0.12 million, which was raised to Rs. 0.5 million by the end of the first year of operation, and by the end of 30th June 1947 capital increased to Rs. 0.673 million and deposits raised to Rs 7.728 million.

The Pre Independence History (1947 to 1974)

Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947.

A view of the building in Lahore that once housed the Australasia Bank branch.

8

However, it was severely hit by the riots in East Punjab. The Bank was identified with the Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala, Jalandhar, Ludhiana, Delhi and Angra (Agra)) were closed down. New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed trade in cloth and food grains thus, played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. Despite the difficult conditions prevailing and the substantial set back in the Bank’s business in India, Australasia Bank made a profit of Rs. 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately, it lost 51 branches in the separation of East Pakistan. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.

In August 2004 as a result of capital reconstruction, the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today the Bank stands on a solid foundation of over 63 years of its existence having a strong equity, assets and deposits base offering universal banking services with higher focus on retail banking. The bank has the largest network of on-line branches in Pakistan and offers various technology based products and services to its diversified clientele through its network of more than 700 branches.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank. The first year was highly successful; profit exceeded Rs. 10 million, deposits rose by over 50 percent and approached Rs. 1460 million. Investments rose by 72 percent and

advances exceeded Rs. 1080 million for the first time in the banking history. 116 new branches were opened during 1974 and the Bank started participating in the Government’s spot procurement agriculture program. Those seventeen years saw a

rapid growth for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion, and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It also opened three branches in the U.K.

9

A view of Allied Bank's FTC branch, Karachi.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered a new phase, and became the world’s first bank to be owned and managed by its employees. In 1993 the “First Allied Bank Modaraba” (FABM) was floated. After privatization, Allied Bank became one of the premier financial institutions of Pakistan.

A view of Allied Bank, Head Office, Lahore

Allied Bank’s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan’s financial sector and was recognized as one of the best amongst the major banks of the country.

In August 2004, as a result of capital reconstruction, the Bank’s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group.

Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches.

(2005 To date)

In May 2005, Ibrahim Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of

10

Pakistan was made; ABL was formally listed and the Bank’s share trading began on the following dates:

Islamabad Stock Exchange8th August 2005 Lahore Stock Exchange10th August 2005

Karachi Stock Exchange 17th August 2005

Today, all Allied Bank Limited shareholders can trade in the Bank’s

shares at their will.

11

BBOARDOARD OFOF D DIRECTORSIRECTORS

Mohammad Aftab Manzoor (CEO)

Mohammad Naeem Mukhtar (Chairman)

Pervaiz Iqbal Butt (Director)

Farrakh Qayyum (Director)

Abdul Aziz Khan (Director)

Sheikh Jalees Ahmed (Director)

Mohammad Waseem Mukhtar (Director)

Sheikh Mukhtar Ahmed (Director)

Mubashir A. Akhtar (Director)

12

CCONSUMERONSUMERIn line with the Bank’s aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer banking business. Furthermore, to achieve this objective, professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments.

The consumer portfolio, comprising the debit card, credit cards, auto loans, personal loans and mortgages will be established phase by phase. However, we are confident that our strengths, together with our largest network of online branches, a superior technology platform, a big customer base and the Consumer Personal Banking Group (CPBG), will take the Bank’s profitability to new heights.

AALLIEDLLIED V VISAISA C CREDITREDIT C CARDARD Welcome to the world of privileges, benefits and savings with your Allied Visa Credit Card. In order to cater to your growing financial needs we are proud to introduce Allied Visa Credit Card with The Lowest Service Charge ever! So now you can save money where it counts and spend lavishly at your favorite places with greater flexibility, convenience and most important-Affordability!

With your Allied Visa Credit Card you can enjoy a variety of state-of-the-art features and unmatched value by spending at over 49,000 merchants across Pakistan and 27 million merchant outlets worldwide! And what more, you can also use your credit card at over 1 million ATMs internationally!

Allied Visa Gold Credit CardAllied Visa Gold Credit CardWith your Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold Card internationally with unmatched savings greater flexibility, convenience and security.

FeaturesFeatures

13

Buy Now,Pay LaterWith your Allied Visa Gold Credit Card, your free credit period allows you to pay for your purchases up to 50 days after the date of purchase. So now you can buy all the things you want - whenever you want - at your own convenience.

Flexible RepaymentWhen paying your credit card bill, your Allied Visa Gold Credit Card gives you the option to either pay the entire amount according to your statement or a minimum of 5% of your total outstanding balance.

Cash Advance FacilityAs an Allied Visa Gold Credit Card member, you are entitled up to 75% of your available credit limit in cash. Just go to your nearest ATM with the VISA or PLUS sign and avail the facility of withdrawing cash 24 hours a day

Allied Easy Installments (AEI)The Allied Easy Installments (AEI) plan provides you with the facility to pay your outstanding card balance in equal and affordable monthly installments spread over 3, 6, 12, 18, 24, 30 or 36 months. So now you can easily afford anything from everyday household appliances to exotic vacations abroad.

Supplementary CardsWant to share the benefits of your Allied Visa Gold Credit Card with others? Now you can! Treat up to two people with supplementary credit cards and pass on the many privileges of your Allied Visa Gold Credit Card to your chosen friends and family members.

Balance Transfer FacilityIn case you have outstanding balances on other cards, consolidate these onto your Allied Visa Gold Credit Card with the lowest BTF rate and save more on your outstanding payments than ever before.

Credit Protection PlusWith Credit Protection Plus, your Allied Visa Gold Credit Card provides payment cover against:

Death, due to accident or sicknessPermanent and Total Disability, due to sickness or accidentTemporary Total Disability, due to sickness or accidentTerminal Illness

Free CIP Lounge Access As an Allied Visa Gold Credit Cardholder, you are eligible to avail the free lounge facility at Quaid-e-Azam

14

International Airport, Karachi and enjoy a variety of complimentary features. Relax while you watch leading television channels or select something to read from an updated library of newspapers and periodicals. Also feel free to plug in your laptop and mobile phone into the charging facilities provided or browse the internet or send and receive faxes while you wait. You can also treat yourself to a wide assortment of high quality snacks, beverages and fresh fruits.

Visa Platinum Credit CardVisa Platinum Credit CardWith your Allied Visa Platinum Credit Card you can enjoy exceptional benefits and a host of local and international benefits like never before!

FeaturesFeatures

Visa Platinum GolfFancy a game of golf? With your Allied Visa Platinum Credit Card, you can enjoy golf at its best with complimentary tee-offs, discounted green fees and access to some of the world’s most celebrated golf clubs.

Platinum Life PlatinumLife is a unique platform that showcases exclusive programs and events specially designed for Visa Platinum Credit Cardholders. With your Allied Visa Platinum Credit Card, you are eligible to join this exclusive platform and avail many exciting services like Platinum Club, Platinum Dining, Platinum Golf, Experiential Travel and much more.So get ready to enjoy the luxury of Platinum Life with the Allied Visa Platinum Credit Card.

Visa Platinum ClubAs a member of the Visa Platinum Club, you are part of an internationally reputed rewards program that provides an unmatched quality of services and customized luxuries to all Allied Visa Platinum Credit Cardholders.The Visa Platinum Club rewards you with exclusive perks such as complimentary room upgrades at five-star hotels, spa treatments, attractive retail discounts, special rates on car rentals, professional golf coaching and much more. Furthermore, unlike other card reward programs, being part of the Visa Platinum Club means that you can start enjoying these privileges immediately without having to earn or accumulate reward points on your credit card.

15

Visa Platinum DiningYour Allied Visa Platinum Credit Card can turn any meal into a dining experience to remember. The Visa Platinum Dining Service offers special dining privileges at over 200 restaurants throughout the Asia-Pacific region. Through this program, you can avail special features such as priority reservations, complimentary meals at selected restaurants, and much more.

Visa Experiential TravelYour Allied Visa Platinum Credit Card now takes you further than ever before. With the Visa Experiential Travel Program, choose the package of your choice as you travel the world and enjoy exotic travel adventures catered especially to your taste.

Concierge OnlineThis facility provides an alternative to the conventional telephony Concierge Service. With a simple click of the mouse, you can easily request for trip planning assistance, hotel reservations, flight reservations, car rentals, restaurant reservations and performance ticket bookings - all from the comfort of your home.To avail this facility, you are first required to register your self on www.visaplatinum.com and then submit the request by filling an online form that will automaticly be sent to the VPCC for fulfillment. A Customer Service Executive will contact you with the relevant details via your preferred mode of communication (email, phone or fax).

Free CIP Lounge AccessAs an Allied Visa Platinum Credit Cardholder, you are eligible to avail the free lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of complimentary features.Relax while you watch leading television channels or select something to read from an updated library of newspapers and periodicals. Also feel free to plug in your laptop and mobile phone into the charging facilities provided or browse the internet or send and receive faxes while you wait. You can also treat yourself to a wide assortment of high quality snacks, beverages and fresh fruits.

AALLIEDLLIED V VISAISA D DEBITEBIT C CARDARD

Features

Get Cash

16

You are always on the move, now your bank account is too. You can use your Allied Cash+Shop Visa Debit Card to withdraw cash directly from your bank account from over 3,500 ATMs in Pakistan - including Allied Bank's largest network of ATMs - and over 1 million ATMs worldwide

Shop AnywhereUse the Visa power of your Allied Cash+Shop Visa Debit Card to shop at over 49,000 retailers in Pakistan and over 27 million retailers internationally.

Dine OutGo to all your favorite restaurants and order whatever you want without having to worry about how much cash you have in your pocket - thanks to your Allied Cash+Shop Visa Debit Card.

Enjoy TravelingImagine traveling without carrying cash. With your Allied Cash+Shop Visa Debit Card, you can buy your plane tickets and do all your shopping abroad without worrying about spending too much or running out of cash.

Have FunWhether you feel like taking the family to see a movie at the cinema or treating some friends to a night of bowling, you can do it all and more with your Allied Cash+Shop Visa Debit Card.

Activation InstructionsPlease follow the instructions stated below so that you are able to use your Card at any merchant outlet or Visa ATMs.1.Kindly sign the signature panel on the back of your Card in permanent ink as soon as you receive it.2. To activate your Card, please call Allied Phone Banking.3. Enter the PIN provided to you in order to use the Card at ATMs.

Protect Your CardDo not bend your Card.Do not leave your Card near a television or any other electrical or electronic gadget, which has a continuous magnetic field.Do not expose your Card to direct sunlight. Please notify the Bank immediately of any irregularities.Avoid scratching or damaging the magnetic strip. This strip is sensitively encoded and requires special care.Do not disclose your Card Account Number or Personal Identification Number (PIN) to anyone.

17

Destroy your PIN mailer once you have seen your PIN.

CCOMMERCIALOMMERCIAL

The Commercial & Retail Banking Group (CRBG) offers a variety of asset and liability-based retail products to its customers. The Group’s main focus has been on introducing various financing and investment products for its valuable clientele, and contributing to the steady growth of the financial industry.

CRBG consists of 4 geographic groups and is further divided across 27 regions in Pakistan. Each region is responsible for providing a quality service to its own customer-base.

In recent years, the Group has been working to find alternate ways to bank for customers, and has installed more ATMs to its already strong and largest ATM network.

During 2007, CRBG also saw a phenomenal growth of 28 percent in liabilities. The Group launched effective campaigns and showed 13 percent growth in Current Accounts & Saving Accounts (CASA). Besides an addition of senior level resources to the team, more Management Trainee Officers were also hired into the Group to bring in more quality and skill.

CRBG is consistent in lifting the Bank’s brand image by emphasizing on good customer services and developing commercial assets and a cost effective deposit base

Deposits AccountsSMEAgricultureInternet BankingOnline Banking Corporate BankingATM NetworksUnclaimed Deposits

ServicesServices

Allied Bank offers the following services to its customers:

Home Remittances Remittances

18

Hajj Services Utility Bills Lockers Commodity Operation

However, the quality of services and network remains pathetic. The Bank has to do a lot in terms of improving its customer management.

Internet BankingInternet Banking

Online Banking facilities are available to customers maintaining accounts at all online branches across the country. The following facilities are available:

Cash Deposit for immediate credit to remote branch. Remote Cheque Encashment from any online branch. Instant Funds Transfer between any 2 online branches. Remote Balance Enquiry and Statement of Account.

CCORPORATEORPORATE

The Corporate Investment Banking Group (CIBG) holds the Bank’s loan portfolio and enjoys a leading position in corporate lending in the country. It offers a wide range of financial services to medium and large sized public and private sector entities. These services include, providing and arranging tenured financing, corporate advisory, underwriting, cash management, trade products, corporate finance products and customer services on all bank related matters.

The Bank has played a key role in the country’s economic growth by providing a vast amount of funds to large industrial and corporate sectors of the economy. And because it has played a big part in major investment and corporate banking transactions, Allied Bank is considered one of the top investment banks in the country today.

Corporate BankingCorporate Banking

Project FinanceLong Term Financing

Short Term Financing

Trade Finance

19

Investment BankingInvestment Banking

Project FinanceSyndication

Advisory

Financial InstitutionFinancial Institution

Cash ManagementHome Remittances

BBRANCHESRANCHES & ATM & ATMSS

Online Banking facilities are available to customers maintaining accounts at all online branches across the country. The following facilities are available:

Cash Deposit for immediate credit to a remote branch.Remote Cheque Encashment from any online branch.

Instant Funds Transfer between any 2 online branches.

Remote Balance Inquiry and Statement of Account

Additionally, account holders of all online branches can obtain the Allied Cash+Shop Visa Debit Card for use at ATMs as well as at POS terminals. To locate a branch simply select the city.

WWORKINGORKING E ENVIRONMENTNVIRONMENTAllied Bank boasts of a work culture, which displays respect for all walks of life and different ways of thinking.Everyone at Allied Bank has a common corporate vision and values. However, all employees are encouraged to grow as individuals and collaborate in teams.Increments, bonuses and promotions are based solely on individual skills, qualities, abilities and attitude. It is our aim to provide innumerable opportunities for all those employees who show aptitude and the will to keep learning.Training programmes, both local and foreign, are also considered important for employee growth.Our complex and relatively changing environment teaches flexibility, provides opportunities to learn and offers many career opportunities.

20

We encourage people who like challenges, can take their responsibilities seriously and handle a constantly changing and high-pressure work environment, to come work with us.

AAREAREA OFOF OPERATIONSOPERATIONS

Allied Bank has operating branches in four provinces, throughout the

38 districts of the country including Azad Jammu and Kashmir.

21

TTHEHE S SHAREHOLDERSHAREHOLDERS

Fourteen commercial banks, including three multinational banks are the bank's shareholders:

PPRIVATERIVATE S SECTORECTOR B BANKSANKS1.    Allied Bank Limited2.    Askari Commercial Bank Limited3.    Habib Bank Limited4.    Habib Metropolitan Bank Limited5.    KASB Bank Limited6.    MCB Bank Limited7.    Mybank Limited8.    Soneri Bank Limited9.    SaudiPak Commercial Bank Limited10.  United Bank Limited

PPUBLICUBLIC S SECTORECTOR B BANKSANKS::1. National Bank of Pakistan

MMULTINATIONALULTINATIONAL B BANKSANKS::1. ABN Amro Bank2. Citibank N.A.3. Standard Chartered

22

DepartmentsDepartmentsAtAt

Gujranwala BranchGujranwala Branch

Gujranwala branch of Allied bank limited is covering 8 regions

comprising:

Hafizabad

Sheikhupura

Kamomke

Wazirabad

Gujrat

Sadhoke

Narowal

Sialkot

Currently, in Gujranwala branch, there are three main

departments; which are:

Accounts & Finance Department

Sales operation department

Credit department

23

“Accounts & Finance Department”“Accounts & Finance Department”This department deals with all those matters that are relating to

the finance.

It manages:

Branch Account handings i.e. imprest account,

disbursement account and Collection account.

Daily reporting relating to finance matters

Weekly reporting to concerned head.

Fortnightly reporting including recovery reports

and cash balance.

Monthly reports relating to Human resource,

Administration and finance & accounts.

HR reporting comprises attendance, medical

claims, deductions from salary if any and many

other issues relating to HR.

Sales Operation DepartmentSales Operation Department“Sales operation Department manages all activities that are

concerned with Sales”

In this department; several key steps are being followed. The

first step includes area identification. Here the area of the

purpose of sale is being identified by conducting surveys and

also by the union council analysis. After identifying the area, the

next step is group formation. This department plays a vital role

in this branch, as it deals with all those activities that are purely

related with the sales operation.

“Credit Department”“Credit Department”Credit department of Allied bank is dealing with all those

activities which are purely relating to the credit. Here, all those

24

cases are reviewed that have applied for the micro financing in

Allied bank In this department, the major task is to review the

credit cases, to review the documentation. After reviewing the

documentation, the next step is to verify the personal guarantee.

And after moving from this whole process, and checking the

credit validity, loan is being sanctioned to the interested party.

Gujranwala branch of Allied bank is only operating with three

departments. The HR department of Allied bank is located in

Islamabad. All the employees are being selected from the head

office. After selection from the head offices, they appointed at

different localities that suits the employee. Here, Allied bank is

currently facing the problem of understaffing but the HR

department has not yet taken certain measure to tackle the

situation. Lets have an overview of HR department and what

functions it is actually performing in Allied bank.

25

“HR Department”“HR Department”

At IslamabadAt Islamabad

“HR Department is that department that manages Human

resource of the company.”

In managing the human resource, not only H.R. Department

involves but also participate other personnel and management of

the company. The HR department of Allied bank undertook

various initiatives to improve and streamline induction of

manpower, career planning, management practices and general

procedures across the organization that enabled it to fully

support the company’s operations. Following are some activities

of HR Department:

Job Analysis

Recruitment

Testing

Interviews

Compensation

Performance appraisal etc.

In Allied bank, there are two sources of hiring the employees.

These are:

Outsourcing i.e. hiring of the contractual staff like,

guard, drivers, office boys etc.

Regular Staff by giving the advertisement in the

newspaper.

Job AnalysisJob Analysis

26

Job analysis is the procedure for determining the duties and skill

requirements of a job and the kind of person who should be

hired for the job by collecting the following types of information:

work activities; human behaviors; machines, tools, equipment,

and work aids; performance standards; job context; and human

requirements. Simply we may say; job analysis consists of:

Job Description

Job Specification

Job description is a list of a job’s duties, responsibilities,

reporting relationships, working conditions, and supervisory

responsibilities. While, Job specification is a list of a job’s

“human requirements”: the requisite education, skills,

personality, and so on – another product of a job analysis.

Uses of Job Analysis:Uses of Job Analysis:

Following are some uses of the Job analysis:

Recruitment and selection

Compensation

Performance appraisal

Training

Discovering unassigned duties.

27

Job Specification in outsourcingJob Specification in outsourcing

Here, you can have the glance of the job specification that is

used by Allied bank in outsourcing:

Job Title: “Data entry operator”Qualification: intermediate with at least second division.Age: 20 – 25 yearsWork experience: not required but preferably 1 year.Abilities: reasonable, intelligent with good communication skills.Personality: smart, physically fit and medically fit for the job.

Other requirements:

A hand written job application along with a passport size photograph, copy of National identity Card, Qualification certificates, character certificate, driving license in some cases and references if any.

Job Description in outsourcingJob Description in outsourcingHere, you can have the glance of the job description that is used by

Allied bank in outsourcing:

Performs work of moderate difficulty in the supervision and

participation of data entry and record maintenance utilizing data

entry terminal; performs other work as assign or required.

Example of Duties:Enters alphabetic, numeric, or symbolic data

Maintains manual support files.

Receives and processes requests.

Verifies eligibility or specific master file records for

purging.

Plans, organizes and directs the work of data entry

personnel.

Operates various types of office equipment.

Job Specification in regular StaffingJob Specification in regular StaffingHere, you can have the glance of the job specification that is used by Allied bank while recruiting the regular staff:

28

Minimum Qualification: Masters degree within required disciplineWork experience: not required but preferably 1 year.Personality: smart, physically fit and medically fit for the job.Abilities: Good command on English language with Computer knowledge.Entry Test: IBA Karachi.Interview: HR department, Islamabad.

Other requirements:

A job application along with a C.V.

Job Description in outsourcingJob Description in outsourcingHere, you can have the glance of the job description that is used

by Allied bank while recruiting the regular staff: here are some

exemplary responsibilities:implementing the delivery of sales strategies and

targets and motivating employees to meet these;

Establishing and maintaining effective relationships

with new and existing customers.

communicating, implementing and monitoring

compliance with corporate standards and procedures;

processing data to produce accurate facts, figures and

reports;

checking accounts and initiating action if they are

overdrawn without arrangement or are in excess of

agreed arrangements;

Networking with appropriate professionals.

Representing the bank within the wider

community.

Recruitment and Selection ProcessRecruitment and Selection Process

29

Recruitment process:Recruitment process:Recruiting is a more complex activity than most managers think

it is. Recruitment efforts should make sense in terms of the

company’s strategic plans. Some recruiting methods are

superior to others, depending on who you are recruiting for and

what your resources are. The success you have with your

recruiting actually depends on non-recruitment HR issues and

policies.

There are several internal and external sources of recruiting the

right candidate for the organization, like:

Finding internal candidates.

Rehiring.

Succession planning etc.

Advertisement

Employment agencies

Executive recruiters.

Referrals etc.

In In Allied bank: : In Allied bank the major source of recruiting

employees is “advertisement in the newspapers”. Both types of

sources of employment are being practiced in this bank.

Selection processSelection processAfter building a pool of candidates, the next step is to screen out

the best candidates according to your requirement by using

various testing tools and techniques. Careful selection of

employees is an important issue because of three main reasons;

which are given below:

Employees with the right skills and attributes will

perform more effectively.

Internal Sources.

External Sources.

30

The cost of making a wrong hire can become

exorbitant considering the time and money

invested in the selection and training process.

The legal implications of incompetent or negligent

hiring.

Here are some testing tools & techniques that are used in the

selection process:

Test of cognitive abilities

Test of motor and physical abilities.

Measuring personality and interests.

Achievement tests etc.

Testing in Testing in Allied bank::

In Allied bank, IBA test is conducted of all those employees who

have appeared in recruitment process to screen out the best

candidates. IBA written test consist of English, Math,

General/Computer Knowledge and Intelligence part based on

multiple choice questions pattern, with negative marking in case

of wrong answer. After testing of the candidates, the next step is

interviewing of those candidates that have passed the IBA

written test.

31

Interviewing Candidates:Interviewing Candidates:After testing the candidates, the next step involves conducting

interviews of the best candidates. An interview is the procedure

designed to obtain information from a person through oral to

oral inquiries. Managers use several types of interviews in the

work settings. There are basically three main types of

interviews; selection interview, appraisal interview and exit

interview.

Managers use various techniques for conducting the selection

interview; such as:

Structured or unstructured interviews

Stress interview

Panel interview

Computerized interview

Mass interview etc.

Interviewing in Interviewing in Allied bank::In Allied bank, panel interview is conducted to screen out the

best candidates for the job. Here; from the pool of the

candidates, who have appeared and cleared IBA written,

interview by the panel of specialist is conducted. All those

candidates; who have cleared this interview are then posted to

the vacancies they have applied for or that meet the skills and

abilities of the selected candidates.

After selecting the candidates by using various

testing and interviewing techniques; the next step is to train

those candidates who are selected in this process.

32

“Training, Retraining“Training, Retrainingandand

Development approach”Development approach”

Training:Training:Training is a job-oriented activity. It provides or improves

specific skills for the current job. A manager may be trained in

communication skill to improve reading, writing, listening and

speaking. A technician may be placed in a factory to acquire job-

relevant skills in a computerized machine. It makes a person fit

for the present work through updating or upgrading of skills.

While in Allied bank training period is for 6months.

Retraining:Retraining:For the improvement of employees due to advancement of

technology. Retraining is only possible when workforce

possesses a sound general education and has already been

trained of broad line skill. But in Allied bank they conduct

seminars for this purpose.

Development:Development:Development is a concept-oriented preparation for human

relation, problem solving in structured or unstructured situation.

It provides conceptual skill to employees.

There are two types of training approaches.

Off-job training approaches

On-job training approaches

33

Off-job training approachesOff-job training approaches

There are further types of off-job training approaches.

1.1. Occupational Training schoolsOccupational Training schoolsThere may be an individual who is aware of his insufficient skills,

at hand, as compared with those required by the work place.

Such a person may be provided desirable job-oriented skill

training by a school. The training school may be in public or

private sector. The individual would opt for training programs in

the respective skills.

2. Cooperative Education2. Cooperative EducationA cooperative education programs are a feasible vehicle of creating and sustaining liaison between the institution and the entrepreneur. College provides conceptual framework while the enterprise engages the strident with work experiences.

3. Vestibule training3. Vestibule trainingAn employee may not be placed on actual workbench because of the pressure of work, efficiency of the already trained manpower and quality controls. A separate simulated workplace is identified to house the learners. It may be an in-service training school established by the organization.

“On job training approaches”“On job training approaches” 1.1. ApprenticeshipApprenticeshipA group of potential employees is inducted to hob-specific training under the guidance of matured and skilled personnel. If it is provided first time to a trainee, it is initial training that includes induction training as well. If trainee has already initial training, then it is only the induction training provided through apprenticeship. The apprentice is paid subsistence money to manage boarding, lodging and daily needs.

2.2. CoachingCoachingA coaching is an instructor of skills. Coaching teaches skills on the basis of one-to-one personal contact between the trainee and the trainer. It is an equally useful training method for managers

34

and non-managers in business, industry, education and government. Allied bank includes training after 6 month probation for final evaluation of candidate, candidate goes to Islamabad (national institute of business and finance) for one week training then he is employed.

3. Mentoring3. MentoringA mentor means an experienced and trusted adviser. Mentoring is an advanced form of coaching designed for potential managers, of various levels, in conceptual skills. In Allied bank for this purpose seminars are conducted.

4. Job Rotation4. Job RotationAn employee is shifted from one position to another, at lateral level from one job to a similar of differentiated and diversified work, preferably, in one’s own discipline. The similarity of elements in the previous and new jobs helps the trainee in acquiring the new skills. In Allied bank this situation is already existing.

5.5. In-Basket TrainingIn-Basket TrainingThe trainee is attached with a senior person. The trainer provides the trainee a basket containing official documents, i.e. memos, letters, reports, etc. The trainee studies these documents and learns about that level of management.

35

CCompensation ompensation MManagementanagementTo attract and retain the best talent, companies require

compensation and benefits structures that are both enticing and

consistent with market standards.

It is an integral part of the management of the organization.

Compensation Management contributes to the overall success of

the organization in several ways. Employee compensation is also

a way to contribute in success of the organization, it refers to all

forms of pay or rewards going to employees and arising from

their employment. It has two main components:

Direct financial payments;Wages, salaries, incentives, commissions, and bonuses etcIndirect payments;Pay in the form of financial benefits such as insurance.

Components of compensation management:Components of compensation management: Salary Probation period Promotion criteria Rent or residence facility Medical care Transportation Pension Vacation criteria Transfer Career management Education of children Insurance Health and safety program Performance appraisal Flaws in practice

Salary:A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.

36

In Allied bank:Salary structure in KB is competitive as compare to other banks. BPS starts from 12000 for a new trainee or employee.

Probation period: It is a time to check the performance of an employee who is provisionally employed to fill a vacant newly created post. The services of a probationer may be terminated at any time by the competent authority with out notice or pay or he/ she may resign with out giving any notice or pay in lieu there of.

In Allied bank In Allied bank there is 6 months probation period used to check the performance of new employees whether it is upto the mark or not. If performance is not satisfactory then new employee will be dismissing from job and performance is above par then employee can gain permanent job with the bank.

Promotions: Promotions traditionally refer to advancements to positions of increased responsibility. Most working people look forward to promotions, which usually mean more pay, responsibility and often job satisfaction. For employers, promotions can provide opportunities to reward exceptional performance, and to fill open positions with tested and loyal employees.

Allied bank:Following is the main criteria for promotion of an employee in KB:

1. Education2. Job knowledge3. Experience4. Performance

If an employee is fulfilling all above requirements then he will be promoted after 6 months.

Rent or residence facility:Traditionally residential facilities are obtained by employees from their employers or organizations in which they work. If no residential facility is provided then employers paid the rent of such accommodation in which employees are living.

37

Usually well reputed or public organizations give this facility to their employees.

In Allied bank:No rent or residential facility provided by KB to their valuable employees.

Medical care:Some time medical allowances are given to employees by their employers while on the other hand if allowances are not given then charges incurred on hospitalization are paid by organizations. So, in this way medical care facility is provided to personals.

In Allied bank:Employees of KB are enjoying medical care facility. Any employee of the Allied bank can claim to pay hospitalization charges of his family members. The claim is approved by R&D department, for approval purpose certain type of documentation is necessary which should be fulfill by employees. After this employees can enjoy this facility.

Transportation:Transportation means conveyance facility to workers of any organization. Some well reputed organizations give allowance to meet their transportation charges or in other way companies provide its own transportation to workers in order to enhance their efficiency and motivational level.

In Allied bank: There is no transportation facility provided to male employees only for females transportation is provided on local basis.

Pension:It is a plan that provides a fix sum when employees reach a predetermined retirement age or when they can no longer work due to disability. In recent time only government sector give pensions to their workers and not private sector.

In Allied bank:

38

In KB there is no pension plan for employees but gratuity is given to workers.

Vacation criteria:Every organization whether public or private has its own vacation plan which is abided by employees. There are many types of leaves given to workers like casual leaves, mandatory leaves, sick leaves, annual leaves etc.

In Allied bank:KB has its own vacation criteria including:

1. Entitlement of 30 leaves in 1 year per employee2. Out of thirty 2 weeks are mandatory leaves3. Remaining leaves can be enjoyed by employee at their will

Above mentioned is revising policy but before this there were:1. 12 casual leaves2. 1 sick leave3. 3 seasonal leaves etc.

Transfer:Reassignments to similar positions in other parts of the firm are called transfers. Usually a transfer is a move from one job to another with no change in salary or grade .Every organization has its own policies or criteria for transfer of employees.In Allied bank:In Allied bank transfers depend upon following issues with reference to employer:

1. Business accidences like overstaffing or understaffing2. Experience3. No efficient performance of employee4. No particular tenure system

Employees seek transfer for:1. Personal enrichment2. More interesting job3. Better working hours

Career management:Career means the occupational position a person has had over many years while career management is a process for enabling employees to better understand and develop their career skills

39

and interests and to use these skills and interests more effectively.

In Allied bank:The series of activities that contribute to career of employees of KB include:

1. Workshops2. Seminars3. On the job training4. Training by National Institute of Business and Finance

Education of children: Some big organizations give education facility for the children of employees. In order to achieve this task they can give allowances or cash or direct payment of fees. Some time workers welfare schools are established for the convenience of employees.

In Allied bank:In Allied bank there is no any facility is given to employees in terms of education of children.

Insurance:Almost all companies are providing insurance facility to their personals. Companies usually give this facility to their permanent workers or employees. Probationers are not come under this head.

In Allied bank:All employees of Allied bank are insured except from probationers or temporary employees. They insured by “ALLICO” insurance company upto 6 million or six lakh.If an employee will expired during duty hours then his family will receive full amount as said six million.If an employee will expire after duty hours then his successors will receive half or fifty percent of the full amount.

Health and safety program:Health and safety programs include medical care and establishment of safe environment for employees. In order to

40

regulate these programs firms maintain their own policies to ensure employees that they are safe and company consider them as a valuable asset for their organization.

In Allied bank: The bank is providing proper health awareness by recommending different tests for employees from time to time without any cost and in order to regulate safety measures KB has insured it’s all assets including human resource staff, vehicles, furniture, equipments, cash etc.

Performance appraisal:Virtually all companies have some formal or informal means of appraising their employees’ performance. Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards set by organization for that particular job. Performance appraisals are a regular review of employee performance within organizations.

Generally, the aims of a scheme are:

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions-salary (merit) increases,promotions, disciplinary actions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

In Allied bank:Employee level:In KB following parameters are used to evaluate performance of an individual employee as well as performance of management level:

41

1. Job knowledge2. Communication3. Interpersonal relationship4. Adoptability of new things5. Motivation6. Customer focus7. Initiative to work8. Team work9. Productivity10. Time management11. Work habbits12. accomplishment of assigned

task Management level:

1. Leadership2. Planning and organizing3. Problem solving and decision

making4. Development of subordinates5. Consensus building to take new task6. Creativity

42

Flaws in practiceFlaws in practiceIn every organization there may be possibility of flaws in regulation of policies or poor policies regarding human resources.similarly there are also some flaws n KB bank regarding HR policies.

In Allied bank:In Allied bank following are draw backs:

Centralization:The most important draw back of HR policies OF KB is centralization, which means that all employees are selected by centralized corporate office Islamabad so there should be decentralization because branch wise selection can reduce many problems.

No regular appraisal system:There should be proper and regular appraisal system in order to enhance employees’ efficiency and capabilities and productivity. In KB there is two time appraisal in one year so there is need to make regular appraisal system.

Hiring of outsource staff:Hiring of most outsource staff can create problem for such employees because they feel insecurity, due to deprivation of incentives their level of motivation goes down which finally leads to high turnover and job rotation.

43

RRECOMMENDATIONSECOMMENDATIONS

H.R.Department personnel should corporate to

externals, as it is also a source for goodwill.

Need to make enough training durations.

Selection procedure duration should be short.

Need to close the gap between employees and

management.

Need to decentralize the decision making.

CCONCLUSIONSONCLUSIONS

In despite of all things and discussions, Allied bank has a strong H.R.Department. Allied bank H.R.Department has strong management and enough resources (e.g. well trained staff and financial). The environment of Allied bank is very informal and more friendly. They proved to be not only the bank but more than a bank. It has been a really good experience.

44

RREFERENCESEFERENCES

Human resource management (g. Dessler)

Human resource management (Sherman)

Job advertisements of Allied bank

Allied bank’s annual reports

Gujranwala branch of Allied bank

www.google.com.pk

official web site of Allied bank

www.abl.com.pk

others.

45