brief history of bank alfalah limited

8/2/2019 Brief History of Bank Alfalah Limited

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BRIEF HISTORY

Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited company under theCompanies Ordinance 1984. Its banking operations commenced from November 1st ,1997. Thebank is engaged in commercial banking and related services as defined in the Banking

companies ordinance 1962. The Bank is currently operating through 45 branches in 21 cities,with the registered office at B.A.Building, I.I. Chundrigar, Karachi.

Since, its inception as the new identity of H.C.E.B after the privatization in 1997, themanagement of the bank has implemented strategies and policies to carve a distinct position forthe bank in the market place. Strengthened with the banking of the Abu Dhabi Group and drivenby the strategic goals set out by its board of management, the Bank has invested in revolutionarytechnology to have an extensive range of products and services. This facilitates theircommitment to a culture of innovation and seeks out synergies with clients and service providersto ensure uninterrupted services to its customers.

The bank perceived the requirements of customers and matches them with quality products andservice solutions. During the past five years, bank has emerged as one of the foremost financialinstitution in the region endeavoring to meet the needs of tomorrow as well as today. Tocontinually upgrade the quality of service to the customers, training of team members in all theintegral aspects of banking, customer service and IT was specially focused.

The portfolio concentrates on all aspects of conventional banking as well as the financial needsof corporate sector. Dynamic and high value product includes Car Financing, Home Financing,Rupee Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumerDurables. In addition to this, Islamic Banking Division is a recent initiative, which operates asseparate branch. It offers Shariah

Compliant products through a network of five branches, which will increase to 50 by the year2007. The bank is committed to combine all it s energies and resources to bring high value,security and satisfaction to its customers, employees and shareholder. The Bank has invested inrevolutionary technology to have an extensive range of products and services. This facilitatescommitment to a culture of innovation and seeks out synergies with client and service providersto ensure uninterrupted services to it customers.

VISION

To be the premier organizations operating locally and internationally that provided thecomplete range

of financial services to all segments under one roof

MISSION

To develop and deliver the most innovative products, manage customers experience, deliverquality service that contributes to brand strength, establishes a competitive advantage and

enhances profitability, thus providing value to the stakeholders of the bank


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MANAGEMENT

Chief Executive Officer

Executive InchargeStrategic Planning & Global Marketing

Executive InchargeInternational &Treasury Division

Executive InchargeHuman Resources Division

Executive InchargeIT Division

Executive InchargeCredit Division

Executive InchargeSystem & Operation Division.

Executive InchargeEstablishment & Administratration

Executive InchargeCredit Monitoring Division

Executive InchargeBusiness Development DivisionS.A.M./ Car Finance/ Leasing

Executive InchargeLegal Affairs Division.

Executive InchargeAudit & Inspection Division

Executive InchargeFinance Division

Executive InchargeCorporate Banking,SME Financing & Home Loans

Executive InchargeIslamic Banking Division

Executive InchargeNew Products &Service Quality Division

Executive InchargeCards Division


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ORGANIZATIONAL STRUCTURE

DEPARTMENTS

Bank Alfalah Limited has the following departments:

v Account Opening Department

v Human Resource Department

v Trade Finance

v Credits


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v Accounts Department

v Administration / Personnel

v Special Asset Management (SAM)

v MIS Department

v Marketing

v Cash & Deposits

v Foreign Currency Accounts

HUMAN RESOURCE MANAGEMENT

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

The concepts and techniques need to carry out the people or personal aspects of managementjob 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 theHRM department Bank Alfalah cannot imagine being able to function. At Bank Alfalah, HRMhas great significance, everybody depends on this department for the entire organization to workand succeed in its mission.


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Human Resource Department-Hierarchy

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


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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:

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 soon


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METHODS OF COLLECTING JOB ANALYSIS INFORMATION

There are two methods of collecting Job Analysis Information:-

Interviews

Observation

INTERVIEWS

A procedure designed to obtain information from a person through oral responses to oralinquiries

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?

RECRUITMENT

The development of a pool of applicants for jobs in the organization


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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 thestrategic (organizational) and tactical (branch level) requirements.

2.) Create a pool of candidates:

The prospect candidates are attracted through advertisement in the newspapers, on the websiteonline and also the walk in.

3.) Screen out candidates:

Through interviews and tests they screen out the less attractive candidates.

4.) Make selection:

After further interviews and other processes the final candidate is selected. Questions in aninterview are made by doing proper job analysis of the job. That includes identifying the jobduties and requirements.


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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. Internal2. 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 hasits own HR department

Head office sanctions recruitment for new employees

Adds in leading newspapers (Dawn, Jang)

College Recruitment (under planning)

Online application forms


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Short listing

Interviews

Decisions made through head office

No help from recruiting agencies

DIRECT INDUCTION OF FRESH CANDIDATES

Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduatecandidates for its organization and the process is as follows:

EXPERIENCED PROFESSIONALS

Based on requirements of experienced staff, Bank Alfalah also recruits talent from themarketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals at alllevels who wish to join hands with Bank Alfalah. The procedure for selecting such professionalsis as follows:


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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

Human Resource Assessment

Bank Alfalah Ltd. has worked hard to build its human resource team and ensure that the qualityof newly inducted staff is not comprised with growth. For recruitment and selection bankspolicy is to hire suitable candidates. By suitable candidates bank refers to candidates havingproper educational qualification, experience and background.

Bank Alfalah not only is one of the fastest growing bank in Pakistan, that provides its customers

with a number of financial services, but is also a great employer of human resources, thatprovides its employees with a conducive environment that not only is challenging but also helpsthem in applying and gaining knowledge.

The above figures show that all prospect employees feel confidence in Bank Alfalah as theirprospective employer. Bank Alfalah, as a response to this confidence has three ways ofemploying prospect employees for their organization.


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OREINTATION

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.

BATCH TRAINEES

All employees selected through this process, have to first complete a probation period beforegiven a complete status of a Bank Alfalah employee. The major benefit of this procedure is thatBank Alfalah can employee a large number of employees at a lower cost. The procedure foraccepting a batch trainee is as follows:

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


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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 responsiblefor providing multi-level high quality training programs in following areas:

- Consumer banking operations

- Credit administration/documentation

- Trade finance operations- Marketing & selling skills- Customer service skills- Performance appraisal skills- Time management & personal effectiveness

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 Training:

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


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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. 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 theJob Training.

OFF THE JOB TRAINING

In Bank Alfalah, Off the JobTraining 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 Professional faculty is hired Increases employee loyalty Labor productivity is zero Cost is high

Time is consumed


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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 EffectivenessPERFORMANCE APPRAISAL SYSTEM

Evaluating an employees currentand / 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 workstandards and then providing feedback to employees with the aim of eliminating performance

deficiencies.

APPRAISAL METHOD AT ALFALAH

The Appraisal Methods at Bank Alfalah are

1. Self Appraisal Method Ratting

Evaluation

1. Problems During Appraisal Unfair Assessment (Bias)


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BEHAVIOR APPRAISAL

In this service oriented industry behavior is as important as performance on job. To managebehaviors and appraise company has devised a managing behavior system to evaluate their corevalues. 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

PAY PLANS & INCENTIVES AT ALFALAH

Pay Plans:

Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from top tobottom, on the bases of compensable factor. Employee with higher rank gets highest pay andincentives.

Compensation Plans for Employees:

In Bank Alfalah, compensation plan for employees includes:

Basic Salary Bonuses Medical Facilities


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AllowancesIncentive 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 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. Policy2. Give Full & Final Settlement3.

Half Salary As A Complementary (Optional)

Supplemental Unemployment Benefits

Supplemental Unemployment Benefits are given

1. During Annual Routine Audits2. Other Privileges


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Insurance Benefits:

Bank Alfalah gives insurance benefits on

Workers Compensation

Complete Life Insurance Hospitalization & Medical Insurance

Other Benefits:

Other benefits provided by Bank Alfalah to its employees are

Pregnancy Compensation 2Bonuses For Each Employee Faster Promotion Introduction OfMENTORS

Bank AlfalahMOHTISIB 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

Services Benefits:

Following services benefits are provide by Bank Alfalah to the employees:

Introduction OfMENTORS (HRREPRESENTATIVE) Counseling Services -

Financial, Career, Job-placement, Grievances


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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 OSHAStandards Major ResponsibilityBr. Manager Routine Safety Audits Inspection & Citations By Head Branch

Managing Proper Responsibilities & Rights Of Both Employer & Employee

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 healthproblems 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. Personalized Attention To Employees2. Angry Employees Management3. Temporary Stop The Working


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4. Counseling5. Real Root Problem6. Use Of Personal Skills7. Professional Attitude Adopted8. Future Avoidance

SWOT ANALYSIS

BAL is one of the fastest growing banks in Pakistan. In the light of these situations we can makean analysis.

Strengths:

Bank is in its growing stages so there is good financial position.

Professional and Committed workforce

Low cost than other major banks

Increasing the number of branches in the country

Successfully launching new Product Lines

Well experienced and quality staff

Efficient internal communication system

Weaknesses:

Although the bank is growing fastly but it has some weaknesses which it should remove to makeitself further strong.

Less Advertisement

Slow in introducing new products

The staff is not satisfied with the salary structure

Gives its staff less benefits


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Opportunities:

Extension of International network of the branches

Introduction of innovative products

Growing market

ATM facility for all customers

Threats:

Uncertain economic conditions

Action taken by competitors

CONCLUSION

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 avery calm and friendly atmosphere at Bank Alfalah because of the HRM department and theirpolicies for keeping their employees happy, productive and efficient.

RECOMMENDATIONS

It is observed that the employees were overburdened so they have to stay at branch till late atnight. In this way their efficiency is affected and hiring more employees can reduce their work.

The employees should be signed jobs for specific period and than they should shifted to otherdepartment so that they gain knowledge of other jobs.

Bank Alfalah Limitedshould properly advertise and Communicate to public about the servicesprovided by it, so that more customers will be attracted.

The banks management should give more incentives and pay scale of officers should berevised & improved.

System and operations should be more defined and organized.

IT draw backs should be improved.


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Administration drawbacks should be improved by the strict control of general issues.

Some employees waive the bank charges (Statement charges, cheque book charges etc) thatdecrease the income of the bank.

Lockers, ATM, all these facilities should be provided to attract more customers.

Expenditures must be control, which are very high.

References

Personal Refernces

Mr. Zulfiqar, Accounts Officer.

(Bank Alfalah Ltd., Wah Cantt Branch)

Mr. Waqas, Customer Services Officer.

(Bank Alfalah Ltd., Wah Cantt Branch)

Web Resources

Bank Alfalah (www.bankalfalah.com) Wikipedia (www.wikipedia.com)

Google (www.Google.com)

Reports & Papers

Annual Report Bank Alfalah 2008 International Finance by Maurice D. Levi Bank Alfalah Limited. (2009). Alfalah Plus [Brochure]. Bank Alfalah Limited. (2009). Alfalah Quick Finance [Brochure]. Bank Alfalah Limited. (2009). Alfalah Milkiat Finance [Brochure]. Bank Alfalah Limited. (2009). Alfalah Karobar Finance [Brochure].

brief history of bank alfalah limited

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