Chapter No 1

Summary of Chapter No1

In this chapter, we explained the brief introduction of Askari Bank Ltd,

its background, its mission statement, its Organogram and decision making

structure of the organization. This will give you the preliminary information

about the organization in order to better understand the functioning of HRM

department. .

In this chapter we explained the following.

Background of the Organization.

Mission statement of the organization.

Awards and achievement.

Services of the Askari Bank Ltd.

Performance and profit history.

Organogram.

Decisions making in the organization.

1.1 Introduction and background of the Organization

Incorporated in Pakistan on October 9, 1991, Askari Bank Ltd

commenced its operations in April 1992, as a Public Limited Company, and

has since expanded into a nation-wide presence of 49 branches, supported by

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a network of online ATMs. The Bank is listed on Karachi, Lahore &

Islamabad Stock Exchanges and the initial public offering was over-

subscribed 16 times.

While capturing the largest market share amongst the new banks,

Askari Bank Ltd has provided good value to its shareholders. Their share

price has remained approximately 12% higher than the average share price of

quoted banks during the last four years.

Askari Bank Ltd is principally engaged in the business of

banking as defined in the Banking Companies Ordinance, 1962. As at

December 31, 2002, the Bank had total assets of Pak Rupees 70.313 billion,

with over 250,000 banking customers.

Askari Bank is the only bank with its operational Head Office in twin

cities of Rawalpindi & Islamabad, because Askari Bank Ltd is directly operated

by Pak Army, which has relatively limited opportunities as compared to Karachi

and Lahore. This created its own challenges and opportunities, and forced them

to evolve an outward-looking strategy in terms of our market emphasis. As a

result, they developed a geographically diversified assets base instead of a

concentration and heavy reliance on business in major commercial centers of

Karachi and Lahore, where most other banks have their operational Head

Offices.

1.2 Mission statement of the Askari Bank Ltd

Leading private sector bank in Pakistan with an international presence,

delivering quality services through innovative technology and effective human

resource management in a modern and progressive organization culture of

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meritocracy, maintaining high ethical and professional standards, while

providing enhanced value to all our stake-holders, and contributing to society.

1.3 Awards and achievement of the Askari Bank Ltd

Over the years, Askari Bank Ltd have received several awards for

the quality of their banking services to individuals and businesses.

They have been declared "The Best Bank in Pakistan" by Global

Finance magazine for the years 2001 & 2002. Also, they have been given the

"Best Consumer Internet Bank" award for Pakistan by the same magazine for

the year 2002. In 1994, 1996 and 1997, we received Euro money and Asia

money awards.

Askari Bank Ltd has an A 1 + rating for short-term obligations

- the highest possible, for the category, while the long-term rating stands at

AA. Askari Bank Ltd won the prestigious "Best Presented Annual

Accounts" awards for 2000 and 2001 from the Institute of Chartered

Accountants of Pakistan and the Institute of Cost and Management

Accountants of Pakistan, for the services sector. For the past four years, they

have received prizes from South Asian Federation of Accountants for "The

Best Presented Annual Accounts" for financial sector, in SAARC region.

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1.4 Services of the Askari Bank Ltd

Over the years, Askari Bank Ltd has proved its strength as a leading

banking sector entity, by achieving the following firsts in Pakistani banking.

i) First Pakistani Bank to offer on-line real-time banking on countrywide

basis.

ii) First Bank with a nation-wide ATM network.

iii) First Bank to offer Internet Banking services.

iv) First Bank to offer E-Commerce solutions.

1.5 Performance history of the Askari Bank Ltd

                               Business Volumes

2002(Rupees in

'000)

2001(Rupees in

'000)

2000(Rupees in

'000)

ASSETS 70,313073 50,980,392 38,454,262

LIABILITIES 66,140,409 48,401,674 36,299,707

NET ASSETS 4,172,664 2,578,718 2,154,555

 

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1.6 Organogram.

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H.R.D.Head of HRD.

S.V.P.

HR OPERATIONOperations

Recruitment Process

Selection Process

Orientation

Socialization

Appraisal System

Promotion

Reward

Staff Care Policy

Disciplinary Actions

HR Communication

HR Development

Job Specification

Job Description

Job Analysis

Motivation

Employee evaluation

HRTraining

Technical

Non Technical

Personality Development

HR Administration

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Chapter No: 1

1.7 Decision Making Structure of the organization

Decision making in the organization is both decentralized and

centralized.

Centralized Decision Making

Some of the decisions in Askari Bank Ltd is centralized with regarding

recruitment and selection process.

Decentralized Decision Making

Some decisions in Askari Bank Ltd are decentralized regarding employee

evaluation process and career development process.

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Chapter No: 2

Summary of Chapter No: 2

In this chapter we’ve covered Recruitment, Selection,

Orientation, Socialization, Appraisal, Motivation and Information System.

How Recruitments process operate in the Askari Bank Ltd.

How Selection process operate in the Askari Bank Ltd.

How Orientation process operate in the Askari Bank Ltd.

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How Socialization process operate in the Askari Bank Ltd.

How Appraisal system operate in the Askari Bank Ltd.

How equal opportunities operate in the Askari Bank Ltd

How motivation operates in the Askari Bank Ltd

How HR information system operate in the Askari Bank Ltd

Chapter No: 2

2.1 Recruitments process in the Askari Bank Ltd.

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Askari Bank Ltd has a well-developed recruiting process.

The recruiting process operates in following way.

YES NO

YES NO

NO

YES

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Job Requisition(Replacement or new position)

Checking needs for replacement –is engagement authorized.

Obtained authority or adopt alternative (such as over time, reorganization)Does a job description

and personnel specification exist?

Analysis JobReview &updates

Are the Terms and conditions of employment agreed?

Is there a suitable supply of internal candidates?

Agree terms and conditions

Evaluate alternative Media

Place internal Adv.

Preparation and publication of informationDetermine Selection

Method

Select the candidates

YES NO

Chapter No: 2

2.2 Selection process operates in the Askari Bank Ltd.

Selection process of Askari Bank Ltd is well developed. The selection process

is described as.

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Advertising for the applicants in the leading news papers

The collection of the application

Short-listing the applicants

Testing the applicants

Short-listing the applicants in the test

Interviewing the applicants

Selection of the candidates

Chapter No: 2

2.3 Orientation process.

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When a candidate is selected, then the bank performs orientation

process for new employees. Askari Bank Ltd emphasizes upon orientation

process of the employee, because it provides the brief introduction of

organization. The president or Vice President usually takes the orientation

process. In absence of the two heads the Video Tapes of President and Vice

president about the orientation of the bank is shown to the candidates.

2.4 Socialization process.

Askari Bank Ltd implements the process of socialization, when a

new employee comes. They get chance to be socialized with the environment of

the company. For this purposes the employees visits all the departments of the

bank and also takes a brief introduction of each department, this gives them a

good overview of organization. HRM department is performing these duties

with the coordination of the relevant department.

2.5 Appraisal system of the employees.

Appraisal system of the Askari Bank Ltd is well developed and fair. The

following process is take place in the Askari Bank Ltd.

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Identification of the Criteria for assessment

Assessment report by Manager

Assessment Interview

Jointly agreed Concrete Conclusion

Follow up Action

Feed back

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PPERFORMANCEERFORMANCE A APPRAISALPPRAISAL F FORMORM

(A(ANNUALNNUAL C COMPLETIONOMPLETION R REPORTEPORT))

Some of the fields are not given in the form, as they were cut out when

officer cut down the confidential portion of the form

NAME __________________ GRADE/DESIGN_________ ___________ STAFF NO______

PAYSACLE______________BASIC PAY AS ON 31-12-2000______________________

DATE OF JOINING______________DATE OF LAST PROMOTION_________________

DATE OF BIRTH_________________________DOMICILE_____________________

ACADEMIC QUALIFICATION_________PROFESSIONAL QUALIFICATION___________

PAST RECORD, ADVERSE REPORT/DISCIPLINARY ACTION (IF ANY) DURING LAST THREE

YEARS I.E. 1998, 1999, 2000_______________________________________________

___________________________________________________________________

INCREMENT GRANTED W.E.F. 01-01-1998 01-01-1999 01-01-2000

ANNUAL ________ ________ ________

SPECIAL ________ ________ ________

BRIEF DESCRIPTION PF THE POSITION HELD DURING ENTIRE CAREER IN BANKING

PERIOD PLACE OF POSITION

DESIGNATION/

POSITION HELD

NATURE OF

ASSIGNMENT

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1. Personal appearance and manners

2. (i) Is he capable of drafting letters and memoranda?

(ii) Can he express himself fluently and coherently

in English and Urdu?

(iii) Besides English which other foreign language

can he speak or write with ease?

(iv) Is he capable of communicating effectively

with Pakistani or foreign corporate mangers

and other important customers and handling

their problems with confidence?

3. (i) Does he possesses adequate initiative or is he

a routinist?

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(ii) Is he a decision maker or does he tend

to procrastinate and refer to his superiors

matters falling within his powers, with

the idea of shifting responsibility?

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Brief highlights of the initiatives taken and achievements actually made

by the officer/executive in the following areas in the branch/regional office/and

division/s and department/s etc of the central office/head office under his

jurisdiction, either on his own volition or in the light of guidelines issued by

bank’s management on the subject:

(i) Improvement in genuine profitability of

bank’s branch/s regional office/s under

his jurisdiction

(ii) Elimination of leakages in income and

control on expenditure and elimination

of waste of institutional resources.

(iii) Improvement in the quality of advances

and guarantees.

(iv) Improvement in bank system of work

control and audit and making them efficient

and cost effective.

(iv) Prevention of fraud and forgeries.

(vi) Identification and ouster of officials and staff

from the bank who are involve in criminal

acts, enjoy bad reputation or are not discharging

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their responsibilities efficiently or honestly.

(vii) Contribution made towards elimination of

excessive staffing levels and improvement of

general productivity of officers and staff under his

jurisdictions

(viii) Ability displayed in providing effective

leadership and maintaining discipline among officers

and staff working under his jurisdiction.

(ix) Promotion of adequate growth of bank’s

genuine deposits particularly from private sector and

elimination of window-dressing.

(xi) Recovery of stuck-up advances.

(xii) Achievement of mandatory targets

(xiii) Timely reconciliation of inter branch

accounts

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(xiv) Improvement in the quality of service

provided to bank’s customers and the general

public and building up of institution’s image.

(xv) Improvement in general look and standard of

tidiness of offices both within and outside.

Signature of reporting officer: ___________

Date: _________

FINAL EVALUATION

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E valuation of personal life and

character qualities:

(i) General reputation

(ii) Style of living and social life

(iii) Moral and professional integrity

(iv) Leadership qualities and administrative

capability.

2. Effectiveness in follow-up and implementation:

His effectiveness as a leader to have Bank’s policies and

programs implemented expeditiously.

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3. (Field is cut off)

His perception of current and future problems and prospects

in respect of branch/regional office/division/department of the

central office /head office falling under his jurisdiction or of

the bank as a whole and his capability to develop adequate

response in time.

4. Assessment of his potential as a professional banker and as

an executive and recommendations about his future

assignment/s where he will make maximum contribution to

the building of building of bank image and its growth and

profitability.

5. OVERALL EVALUATION OF THE PERFORMANCE

Assessment of his overall performance so far

(Please evaluate performance under following mentioned

categories.

MARKS

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1. Outstanding 4

2. Very Good 3

3. Good 2

4. Average 1

5. Below Average 0

Signature of Evaluating officer: _____________

Date: _____________

2.6 Equal Employment Opportunity

Askari Bank Ltd is following equal employment opportunity. In

case of hiring employees there is no gender discrimination. Males and females

are hired, equal opportunity for them for job. In some cases women related

matters are solved preferable like canceling transfer way from home Bank is not

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following any quota system while hiring the candidates. In the bank handicap

form the figure of 2%-3% of the employees.

2.7 Human Resource Information System

Askari Bank Ltd is maintaining Human Resource information

system at all of its regional offices and head office. The information system is

computerized and all branches are interconnected with each other.

2.8 MOTIVATION IN EMPLOYEES

At Askari Bank Ltd the employees have a motivation factor that is

dominant over other factors. They are motivated through different ways like

Fair job appraisal system.

Fair reward system & satisfaction of the employees.

Good environment for working conditions.

Job place is according to the convenience of employee.

After job starting they don’t transfer their employees.

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2.9Reward system

BEST EMPLOYEE OF YEAR

Every year on the basis of performance and ACR best employee of the

year is selected in all the branches, regional offices, and head office. The

selected employee is given shield and presented as the model for the rest of the

employees.

GOOD PERFORMANCE SHIELD

Each year when an employee shows good performance in his filed of

performance his efforts are recognized by issues him shield. This shield is for

all of those who show good performance.

CASH REWARDS

In cases where an employee shows outstanding performance in difficult

situations he is rewarded with cash prizes. The amount of cash prizes is not

fixed.

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BENEFITS

Askari Bank Ltd is not only offering the benefits prescribed by

government but also provides additional benefits. Benefits that the employees of

the banks are getting are as under:

PENSION

Pension is the right of every regular employee of the bank. The amount

of pension is based on the government policies. Which amount or percentage

government fixes bank pays it to its ex-employees.

GRATUITY

At the time of retirement bank pays a lump-sum amount to retired

employee. The amount of gratuity depends on the period of service of the

employee and basic pay.

GENERAL PROVIDENT FUND

In G.P fund employees and bank shares equally and at the time of

separation employee not only get the amount but also receives interest on it.

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LEAVES WITH PAY

If an employee wants leave for long time i.e. over 6 week he can gets

amount equivalent to his per month salary.

OTHER BENEFITS

Benevolent fund

Marriage grant

Burial grant

Medical allowance (amount spent on treatment)

House rent allowance (95% of basic pay)

Pension, gratuity, and general provident funds are being provided under

government laws while other benefits are being provided under bank rules.

Some benefits are being provided once in the job like marriage grant.

2.10 Health and safety

Askari Bank is a servicing organization and is maintaing “OHS”. Bank

maintains the safety by appointing security staff at each office of the bank. Bank

has the policy to compensate the employees who died or face disability during

the job. They provide medical facility to the employees. And they refer their

employees to their entitled hospitals.

2.11Employee Retention

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Bank has no very well organized employee retention policy. And they

have employee turn over of 6% per year.

Chapter No 3

Summary of the chapter

In this chapter a brief introduction of the Askari Bank Ltd `s Job

specification, Job Description, Job analysis and career development.

Job specification

Job Description

Job analysis

Career development

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3.1 job Analysis

Following steps should be taken by the Askari Bank Ltd.

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Step1: Obtain Documentary information such as procedure manuals and written

instruction.

Step 2:Ask about more general aspect such as the job purposes, the main

activities.

Step 3: Ask the jobholders about the job.

Step 4: Observe the jobholders to see what they actually do.

3.2 job specification

Job specification

Askari bank also has well developed criteria for each job in term of the

job specification. In all the area of the jobs the pre- requisite for the job are

defined for example:

Qualification required for a job

Skill required for a job

Experience required for a job

3.3 job description

Job Description

Human resource Division analyze each job and the its required outcomes.

Job analysis is done by analyzing the past experience and emerging trends.

Askari bank holds documents about terms, duties, responsibilities, and

specifications about each job.

3.4 Career development

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Askari Bank currently has no prominent policy for career development of

the employees. The bank is following the policy that was set by government

long period ago. Every employee knows that he will be promoted after a fixed

period with fixed amount of increment. Employees didn’t look for opportunities

around them and in result bank didn’t care to provide option for career

development. Career development at the bank can be said as the dumb terminal

at both ends.

Chapter NO 4

Summary of the chapter NO 4

COMMUNICATION STYLE

INFORMAL COMMUNICATION STYLE

DISCIPLINE MANAGEMENT

HOW HRD MANAGE UNION

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Communication in the Askari Bank Ltd

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Askari Bank Ltd is following governance rules prescribed by State

Bank as well as of the bank’s itself. In the following lines we’ll discuss the

governance pattern of the bank.

4.1 COMMUNICATION STYLE

Askari Bank Ltd has the pattern of downward and upward

communication. Based on the organizational structure of the bank

communication required each level to pass on. But an employee can approach to

top management as well.

The bank communication infrastructure is not so good. There is very less

use of notice boards. E-mail culture is not fully utilized there, though facility is

provided to the employees. Major channel of communication are formal letters

and telephone. Memos are also an effective tool of communication.

4.2 INFORMAL COMMUNICATION STYLE

When we visited Askari Bank Ltd we observed that official language of

bank is English while employees were communicating with each other in Urdu.

Similarly the style that should be exists in the organization was not in the bank.

We finally observed that informal communication style is according to the

policy of bank.

4.3 DISCIPLINE MANAGEMENT

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While meeting with Mr. Aamir he told us that bank always take care of

employee rights but on the other hand also keep discipline because in the past

employee took undue benefit of the management leniency.

DISCIPLINE AT BANK

In the bank if an employee alleged to be guilty then the management

takes following proceedings:

EXPLANATION LETTER

Alleged employee receives an explanation letter in which he is advised to

clear the allegations against him.

ENQUIRY

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If employee fails to clear allegations against him then an enquiry

commission looks into the matter.

PUNISHMENT (IF ALLEGATION IS PROVED)

If allegation becomes approved then anyone or more of the following

punishes the guilty:

No Increments.

Suspension.

Degrade by one or two levels.

Dismissed from job.

APPEAL RIGHT FROM EMPLOYEE

An employee can appeal against the grievance. For this purpose

government has established two institutes where the appeals of the employees

are entertained against the decision of management.

4.4 HOW HRD MANAGE UNION

There is no union in Askari Bank Ltd. So they don’t have to deal with

the problem of union.

Chapter No 5

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Suggestions and recommendations.

Conclusion.

Bibliography.

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Conclusion

Bank’s HRM department is very well established & is working very well

and employees are satisfied with the working and planning from HR

department. This clearly shows that the management is well aware of the

importance of managing Human Resource of Askari Bank Ltd. They’re having

certain plans for employee’s development as well as organizational

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development. Bank has a turnover of 6% per annum. And they are having no

well defined structure of employee retention.

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Suggestions and Recommendations

1-SEPARATION OF HUMAN RESOURCE DIVISION FROM

ADMINISTRATION DIVISION

First of all it is needed that Human Resource Department should be

separated from Administration Department to make the Human Resource

Division specialized and full functioned department.

2- Appraisal can be taken from the customers

Banking is the business that is directly related to general public and an

employee can be judged by the appraisal from customer. This practice will

increase the accuracy of performance check as well will improve the behavior

of employees with general public.

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3- Employee retention

Employee retention should be followed because skilled and experienced

employees can give their maximum out-put. To employee retention bank can

give extra advantages to its employees which offers its competitors.

Bibliography:

HRM Manager

Mr. Hbib ur rehman

http://www.ubl.com.pk

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