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Presented By:
Muhammad Shafique RamzanSdutent ID: MC080400906
Session: 2008- 2010
Date: July 30th 2010
Virtual University of Pakistan
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BANK ALFALAH LIMITED
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Internship Certificate
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Dedication
My hard work is dedicated to my mother, who taught me that the best kind of
knowledge to have is that which is learned for its own sake. It is also dedicated to my
wife, who told me that even the largest task can be accomplished if it is done one
step at a time and finally to my friends who encouraged me by saying
Nothing is Impossible.
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Acknowledgement
I am greatly thankful to Mr. Imran Aslam, Hub Manager, BAL Gulberg, who helped
me a lot throughout the internship and taught me almost every operation
management and consumer banking procedure from the scratch to the professional
level. I also be obliged my deepest gratitude to Mr. Asad Ali Shah, Operations
Officer, BAL Gulberg, who made available his support in a number of ways to show
me how to schedule tasks, supervise staff, solve technical problems, written and
verbal communication and also made me familiar with the banking policies and
operating procedures.
I am also thankful to my friends and colleagues who gave me what I needed the
most to accomplish this task which was
CAN DO COURAGE.
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Executive Summery
This report is sequenced with the Introduction Of The organizations
business sector which refers to the main areas and where the organization deals
with the consumer services as well as the overview of the organization, telling
about the brief history, Business volume, product lines, and about the
competitors. Purpose and scope of the study. Including the Hierarchy of the
Bank. This proceeds with the findings of the internship, which summarizes the
Management and Operational practices followed in BAL and a detailed
elaboration of Training and Development practices in BAL.
In the end I have done the SWOT analysis of the Bank Alfalah Limited.
Report has been finalized with the conclusion and recommendations.
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Table of ContentsLetter of Undertaking 2
Internship Certificate 3
Dedication 4
Acknowledgement 5
Executive Summery 6
Brief Introduction to Banking Evolution 8
Brief History 11
Nature of the Organization 12
Business Volume 12
Product Lines 14
Competitors 14
Organizational Structure 15
Organizational Hierarchy Chart 18
Number of employees 19
Main Offices 20Introduction of all Departments 21
Comments on the organizational structure 35
Plan of my internship Programme 35
A brief introduction of the branch where i did my internship. 35
Starting and Ending dates of Internship 36
Names of Departments, I got training 36
Training Program 36
Detailed description of activities of departments I worked in. 42
Detailed description of tasks assigned to me 42
Functions of management 43
Planning 43
Decision Making Process 44Organizations Current Strategies 44
Organizing 45
Organizational Design 45
Departmentalization 46
Span of Control 47
Chain of Command 47
Centralization 48
Decentralization 48
Formalization 49
Work Specialization 49
Managing Change and Innovation 49
Managing IT and Communication 50
Leadership 51Traits of Leader 51
Power and Politics 52
Motivation 52
Controlling 53
Controlling Approach 53
Controlling Standard 53
Controlling of Operations 54
Controlling of Performance 54
Controlling of information/Knowledge 54
Critical Analysis 55
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SWOT analysis 56Conclusions 58
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Recommendations 59
Reference & Sources 60
Annexes 61
Brief Introduction to Banking Evolution
The word bank has been taken from the word Bancus or Banque. The
history of banking evolved in 2000 B.C from Greece. The most popular financial
agents, Priest and Goldsmiths used to perform financial activities by keeping moneyand valuables in safe places. So the first step in the development of banking was
taking cash as deposit from the people having extra money and willing to keep at
safe place.
So the goldsmiths used to take money from the people who had extra cash
and lend a part of it to the needy people on interest. They also used to give a part of
interest as a profit to the depositors. By keeping the most part of cash they gavefacility to depositors to withdraw cash more then what they deposited as an
overdraw facility and charged interest on the overdrawn amount. This is how the
concept of banking and its procedures was evolved.
To develop the confidence between the people, plans were initiated to
regulate the banking sector and therefore, a conference was held in Nuremberg in
1548, in which it was decided to establish a bank which would regulate the banking
sector for a country. So the first central bank was established in Geneva in 1694.
Modern banks are consumer services providers as they act as payment
agents. Banks open different kinds of accounts for customers, accept cheques and
deals with other payment methods like telegraphic transfer, online money transfers
etc. Banks also borrow money from its customers by accepting cash deposited on
current accounts, term deposits and by issuing debt securities such as banknotes
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and bonds. Banks also lend money to its customers as a loan on mark-ups to
generate profit for the bank. Banks can produce money in a lot many ways like
interests, transaction fees, inter-country funds transfer fees and financial advice. The
bank earns profit from the difference of interest it pays for the deposits and the
interest it takes from lending. This difference is also known as the spread between
cost of fund and the loan interest rate.
Types of Banks
Banks are divided into two major categories as retail banks and investment
banks. Retail and investment banks are further divided into sub categories as:
Retail Banks
Community Banks
Community Development Banks
Commercial Banks
Postal Savings Banks
Offshore Banks
Savings Banks
Building Societies
Investment Banks
Investment Banks
Merchant Banks
Another type of bank is Islamic Bank which performs according to Islamic law
Banking Sector in Pakistan
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The history of banking system in Pakistan was started after the independence
of Pakistan in August 14 of 1947 when many banks transferred their head offices as
well as funds after fall in India.
An assessment of various books there were 3496 branches of Indian scheduled
banks in undivided sub-continent as on 1st March 1947 out of which only 487 branches
were located in Pakistani constituency. Moreover, 195 to 487 banks were declined
immediately after partition.
After the partition only two banks were having the honor first is Commercial
Bank of Pakistan namely Habib bank Ltd, which was established in 1941, having their
Head Office in India and as well as Australasia Bank Ltd, was established in 1944 withits Head Office in Pakistan.
The Banking history of Pakistan was started in 1948 by the establishment of
State Bank of Pakistan which was inaugurated by Quaid-e-Azam Muhammad Ali
Jinnah. Right after three banks were established which are Muslim Commercial Bank
Limited, National Bank of Pakistan, and Habib Bank Limited.
In the last few years a gradual and noticeable improvement in the economyand organizations has initiated their policies on country debt reduction, implementation
of IMF program with filling the gap with a progressive strengthening of the external
account. These integral factors has led a strong and healthy build-up of banking
reserves with efficient investment is showing the economic overview of Pakistan.
The domestic level of the financial industry, the focus on monetary policy
initiated in 2001 to revive the economy continued output in surplus liquidity in the
banking sector which is further decreasing of interest rates.
Despite of stable and reinvigorate the economy, the real sector continues
plagued with sub standard economic activity which increase in unemployment levels.
There are various factors for the current scenario as going far as the real sector is
concerned. Therefore the large scale manufacturing involve in excess supply as the
output of heavy investment in the nineties.
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Overview of The Organization
BANK ALFALAH LIMITEDBrief History
Bank Alfalah Limited was established on June 21st
, 1997 as a public limited
company. Its operations started from 1st November 1997. BAL started commercial
banking and related services according to banking companies ordinance 1962. The
bank has 45 branches in 21 cities, of Pakistan and its Head offices is registered as
Bank Alfalah Building, 11 Chundrigarh Road, Karachi.
Bank Alfalah was further strengthened with the banking of Abu Dhabi
Group. The strategic goals and plans were set by its board of management to boost
up the efficiency of BAL.
The BAL has perceived the needs of their customers and matched them with
their quality products and service solutions. Within last few years BAL has improved
their banking sector to retain their customers as well as gain the competitive
advantage in the market. BAL is one of the most financial institution in the region who
meet the needs of tomorrow. Bank Alfalah Limited has encouraged and motivate
their employees with providing them facilities of training about the various parts ofbanking, and customer services.
Bank Alfalah Vision
To be the premier organizations operating locally and internationally that
provided the complete range of financial services to all segments under one roof.
Bank Alfalah Mission
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To develop and deliver the most innovative products, manage customers
experience, deliver quality service that contributes to brand strength, establishes a
competitive advantage and enhances profitability, thus providing value to the
stakeholders of the bank.
Nature of the Organization
Bank Alfalah Limited (the Bank) is a banking company incorporated in
Pakistan on June 21, 1992 as a public limited company under the Companies
Ordinance, 1984. It commenced its banking operations on November 01,1992. The
Banks registered office is at B.A. Building, I.I. Chundrigarh Road, Karachi and islisted on the Karachi, Lahore and Islamabad Stock Exchange. The Bank is engaged
in banking services as described in the Banking Companies Ordinance, 1962 and is
operating through 253 conventional banking branches including 4 sub branches
(2009:253 branches), 7 overseas branches (2009:17 branches), 60 Islamic banking
branches and 1 offshore banking unit.
The Group Comprises of the holding company and a subsidiary Alfalah
Securities (private) Limited. The principal objective of the Alfalah Securities (Private)
Limited, is to undertake the business of brokerage house. The Company obtained
corporate membership from Karachi Stock Exchange Limited on November 24,2003.
The Bank holds 76 percent shares of the Company.
Business Volume
Year 2006 2007 2008 2009
Operational Results
Total Income 24,416 31,822 35,789 40743
Operating Expenses 5918 8289 9957 11002
Profit Before Income Tax and 3264 6906 3831 4711
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Provision
Profit Before Income Tax 2566 4536 1795 1016
Profit After Taxation 1763 3130 1301 897
Balance Sheet
Shareholders Equity 10573 13767 14609 19770
Total Assets 275686 328895 348991 389070
Advances net of Provision 149999 171199 191790 188042
Investment net of Provision 56502 88492 75973 99160
Deposits and others Accounts 239509 273174 300733 324760
Others
Imports 119937 184305 190289 197304
Exports 70844 79090 93406 100493
Ratios
Capital Adequacy 9.48 9.85 8.03 12.46
Profit before Tax Ratio 12.11 17.59 5.80 2.86
(PBT/Gross Mark up income 28.12 35.54 33.82 30.67
Income / Expense ratio 4.13 3.84 3.59 3.70
Return on Average Eqity 20.37 25.72 9.17 5.22
Return on Average Assets 0.67 1.04 0.38 0.24
Advances/Deposits Ratio 62.36 62.67 63.77 57.90
Cash Dividends - - 15% -
Stock Dividend 33.33 30.00 23% 12.5%
Book value per share
excluding revaluation of
assets
21.15 21.18 18.27 14.65
Book value per share
including revaluation of assets
24.48 24.95 21.32 16.41
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Basic Earnings per share 2.91 3.92 1.41 0.71
Product Lines
Bank Alfalah has diversified their business portfolio in every part of the
banking sector to meet the financial needs. They offered a high value products for
their customers consists on
Car Financing
Home Financing
Rupee Travellers Cheque
Credits Cards
Debit Cards
On line Banking
ATM and consumer Durables etc.
BAL has recently started their new business unit of Islamic Banking Division
as an isolated branch. It is providing the products according to Shariah. Now these
Islamic Banking branches have increased to more then 50, with these efforts the
bank is trying to enhance their energies and resources to create a high value
satisfaction for their customers, as well as employees. The BAL wants to increase
their banking technology intensively in remote areas where the customers cannotmake their access easily to the bank.
Competitors
Followings are the major competitors of BAL.
Askari Commercial Bank Ltd
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Standard Chartered Bank Ltd
Union Bank Ltd
Soneri Bank Ltd
Prime Commercial Bank Ltd
Bolan Bank Ltd
Faysal Bank Ltd
Platinum Bank Ltd
Organizational Structure
Chairmans Message
Since the inception of Bank Alfalah, by the grace of the Almighty, we have
moved rapidly in expanding our branch network and deposit base, along with
making profitable advances and increasing the range of products and services. We
have made a break-through in providing premier services at an affordable cost to
our customers.
Keeping in view our valued clients and the need for constant and effective
communication of information, we have designed this website to be as user-friendly
as possible.
As we pursue the path of excellence, customer satisfaction remains our
priority. It is only when we know our customers better, can we deliver a higher
quality of services, thereby adding synergy to our existing management expertise,
financial strength and profitability. This is yet another channel of communication for
the delivery of quality products and services that enhance value to our
stakeholders.
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Board of Directors
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan ( Chairman )
Mr. Mohammad Saleem Akhtar ( Chief Executive Officer)
Mr. Abdulla Nasser Hawalileel Al-Mansoori
Mr. Abdulla Khalil Al Mutawa
Mr. Ikram Ul-Majeed Sehgal
Mr.Khalid Mana Saeed Al Otaiba
Management
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Mr. Sirajuddin AzizChief Executive Officer
Mr. Parvez A. ShahidCo-Chairman Central ManagementCommittee
Mr. Shakil SadiqChief Operating Officer
Mr. Talib RizviGroup HeadRetail & Middle Market, North
Mr. Adil RashidGroup HeadConsumer Finance
Mr. Shahab Bin ShahidGroup HeadRetail & Middle Market, South
Mr. A. Wahid DadaGroup HeadOperations
Mr. Adnan Anwar KhanGroup HeadRetail & Middle Market, Central
Mr. Nadeem Ul HaqGroup HeadTechnology & Operations
Mr. Mohammad YousufGroup Head
Credit
Mr. M. Iqbal SaifiGroup Head
Credit Monitoring
Mr. Arfa Waheed MalikGroup HeadCorporate & Investment Banking
Mr. Ijaz FarooqGroup HeadIslamic Banking
Mr. Bakhtiar KhawajaGroup HeadLearning
Mr. Yasar RashidGroup HeadAudit & Inspection
Mr. Zahid Ali H. Jamall
Chief Financial Officer
Mr. Falak Sher
Chief Compliance Officer
Mr. Tariq MirGeneral ManagerInternational Business
Mr. M. Mudassar AqilGeneral ManagerHuman Resource & Quality Assurance
Mr. Shahid H. KaziGeneral ManagerStrategic Planning
Mr. Ather ShehabGeneral ManagerEstablishment & Administration
Mr. Haroon KhalidGeneral ManagerRisk Management
Mr. Hamid AshrafGeneral ManagerLegal & Company Secretary
Mr. Imtiaz Ahmad SheikhGeneral ManagerInformation Technology
Mr. Hamid M. MirzaHead of Marketing
Mr. Nasim AhmedHead of Equity Portfolio
Mr. Umer HayatHead of SAM South
Mr. Muhammed Omer DogarHead of SAM North
Mr. Khurshed A. KhairHead of Special Projects
Mr. Zafar IqbalHead of Treasury
Mr. Syed HassanHead of FI
Mr. Yawar Ali Gulani
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Organizational Hierarchy Chart
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Board of Directors
Chief ExecutiveOfficer
Chairman
S ExecutiveIncharge
StrategicPlanning& & & GlobalMarketing
ExecutiveIncharge
International &Treasury Division
ExecutiveIncharge
Human ResourceDivision
ExecutiveIncharge
IT Division
ExecutiveIncharge
Credit Division
ExecutiveIncharge
System &Corporation
Division
ExecutiveInchargeCredit Monitoring
Division
Executive
Incharge Establishment &
Administration
ExecutiveInchargeBusiness Development
Division
Executive
Incharge Legal Affairs
Division
Executive
Incharge Audit & Inspection
Division
ExecutiveInchargeFinance Division
ExecutiveIncharge
Corporate ExchangeFinancing & Home
Loan
ExecutiveIncharge
Islamic Banking
Division
ExecutiveIncharge
New Products & ServiceQuality Division
ExecutiveIncharge
Cards Division
Area ManagerNorth
BranchManager
North
Area ManagerSouth
BranchManager
South
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Number of Employee
Bank Alfalah is the fastest growing financial institute with constantly increasing
of manpower to provide the best services to their customers. Human Resource
Department has an ability to manage the work force diversity around the country and
provide them a conductive environment to play a challenging role and also help them
in gaining knowledge. Increase in number of employees can be seen in the following
chart.
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Main Offices
The detail of Bank Alfalah main offices all over Pakistan isas under:
KARACHIB.A. Building, I.I Chundrigar Road, Karachi111-777-786021-2414030-9 021-2414030-9
LAHOREMall Road, Brnach, Lahore
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BANK ALFALAH LIMITED
042-7350033-35
RAWALPINDIMain Branch, The Mall, Rwp.
051-5582288 051-5582288051-566084-6 051-566084-6
ISLAMABADBlue Area Branch, Islamabad
051-2275286 051-2275286
051-2270193 051-2270193
051-206986-7 051-206986-7
Introduction of all Departments
Accounts Opening
Operations
Accounts
Marketing
I T (Information Technology)
Cash
Human Resource
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Accounts Opening Department
Account department is playing a key role and is working under the retail
banking facilities which are provided by the bank. Here are two important types of
accounts discussed below.
Deposit Account
This is a deposit bank product available for all persons who are eligible to
open a deposit account as per our Banks criteria. The account can be opened singly
or preferably jointly (husband & wife. This product is designed to attract procure
deposit/savings of citizens by offering attractive, innovative incentives and higher rate
of profit to.
Current Account
For the opening of current account, there should be minimum Rs. 10000, and
there will no deduction of Zakat fund from the account holder. However all the
account holders are allowed to receive a debit card without any restriction on the
number of withdrawals or deposits made.
Operations DepartmentOperations departments has to perform following major activities.
Clearing
Transfers
Remittance
Cash Transfers
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In big branches of Bank Alfalah all above activities are performed by separate
departments but in case of a small branch all the activities are performed by the
same operation department. This operation department is also called the transact
department.
Clearing
Clearing department is meanly responsible for clearing all kinds of checks
received by the bank. These checks may differ in kinds like:
Inward Clearing
Outward Clearing
Online Clearing
Outwards Bills for Collections
Inward Clearing
Inward Clearing is done when bank alfalah account holders draws a cheque
in favour of an account holder which does not belong to alfalah bank. The
processing of inward clearing consists of following steps.
a. Operations department received cheque from NIFT.
b. All the particulars are verified by the bank officer. If any ambiguity is found
then the cheque is marked as returned, giving the reason with it.
c. If there is no fault found then the cheque is posted in the system and the
customers account is debited.
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d. Returned cheques particulars are fed in the O/W returned of inward
clearing registered and are send to NIFT.
Outward Clearing
The process of clearing the cheques in favour of Bank Alfalah drawn by non
Alfalah Bank customers and the amount is transferred to Alfalah Banks account is
called outward clearing.
The process of outward clearing consists of following steps:
a. Operations department of bank alfalah receives the cheque.
b. Customers account is credited in favour of whom cheque is drawn.
c. Cheque is stamped as cleared and sent to the other bank through NIFT.
If the cheque is returned in the next few days, the cheque amount is debited
from the customers account and cheque is posted to the customer. Returned
cheque record is kept into cheque return register.
Online Clearing
Online clearing usually takes place when a cheque is drawn by customers
which does not belong to Alfalah Bank in favour of Alfalah Bank customer but the
amount is deposited into Alfalah Bank. In this case the person who had drawn the
cheque should have an account with the Alfalah Bank.
The process of online clearing consists of following two steps.
a. The bank sends the cheque as an outward clearing through NIFT.
b. If the cheque is cleared the amount is credited to alfalah bank using the
online transferring software.
Transfers
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Alfalah Bank uses bank smart software for transfers. There are two types of
transfers:
a. Internal Transfers
Internal transfers usually take place between two Alfalah bank customers
having account in the same branch.
b. Online Transfers
Internal transfers usually take place between two Alfalah bank customers
having account in the same branch using online transfer facility.
Remittances
There are two kind of remittances.
Pay Order
Pay order is normally used within the same city. It is a safe way of carrying
money instead of cash.
Demand Draft
Demand draft is normally used when someone wants to transfer money to
someone outside the city.
There are two types of demand draft.
Outward DDs
Inward DDs
Cash Transfers
The cash transfers are the responsibilities of transact department. It is liable
for all cash deposits and withdraws made by Bank Alfalah.
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Accounts Department
Accounts department works at the backend of the bank. It produces the
accounts statements which is a report based on the activity of all the accounts owned
by bank. Secondly, it generates statement of affairs which shows the liabilities and
assets of the bank. Thirdly, it generates the statement of foreign exchange which
shows the foreign exchange currencies present at the bank . Fourthly, it generates
the statement of profit and loss which shows the income and the expenditures of the
bank. These reports are generated at daily, weekly, monthly, quarterly or yearly basis
as required by the bank.
Accounts department is also responsible for following:
Income and Expense
Budget
Activity Checking
Storage of Record
Payments
Marketing Department
Marketing department plays a very important role for the success of an
organization. Bank Alfalah is following a strategy of centralised marketing so that
everyone anywhere in the Pakistan gets the same message for the promotion of a
product. While marketing, Bank Alfalah keeps in view the sales targets, need
identification, positioning, targeting and promotion. They have also outsourced the
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product dependant marketing tasks to other companies to overcome the marketing
costs.
I T Department
I T Department of a Alfalah Bank is responsible for processing all kind of
electronic information. It is the most restricted department and only few employees
are authorised to even enter in the department. It is responsible to keep the record
up to date and make them available at all time for the bank and the customers. I T
department is also responsible of
Online Banking
Phone Banking
ATM Banking
H R Department
This section includes a summary of the HRM practices followed in BAL and a
detailed study of Training and Development. The most important Division at the Head
Office is responsible for human resource management, including planning,
recruitment, staffing, training & development, compensation, performance
management, employee relation and evaluation. The Division also handles matters
relating to administration that proves an integrative linkage between HRD and
Administration.
Different practices are briefly summarized as follows:
Planning
HR Department is responsible for an effective HR planning regarding demand
and supply of employees and forecasting for these practices.
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Forecasting Employee Demand: -
Employee demand at BAL is derived from following factors;
Internal Growth
a. Opening a New Branch.
b. Setting up New Technology.
c. Changes in Customer Demand.
d. New Services.
Forecasting Employee Supply
HRD at BAL ensures the employee supply on following basis;
Transfers
BAL transfers its employees from one branch to other branch with in the same
region, especially whenever a new branch is opened.
Internal Movements
Internal movements, which include promotions and rightsizing, are a part of
supply.
Rotations
Job rotations are also done within the departments from time to time to
decrease the monotony and to make up interest in the job. It is most common
for On Job Training of MTOs.
Overtime
To compensate the workload, most of the employees voluntarily work over-
time at their jobs. As the employees are not forced to work over-time so they
are not paid for this overtime. Sometime the supervisors also ask their
subordinates to work over-time.
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Apart from this, there are night shifts working in Information Technology
Department (ITD) at BAL. Overtime is done whenever there is a workload
regarding the making of ATM and Credit Cards etc.
Temporary / Contractual
Temporary and Contractual employees also work in BAL normally in ITD who
work as Hardware Technicians and Software Engineers etc.
The same are sometimes contracted from different Software Houses.
Other than this all the employee at BAL is not permanent, most of them
are at contract (employment at will).
Employee Shortage
As BAL has currently a growth strategyand for that BAL is opening five to six
branches every year at national level. This makes an employee shortage for BAL, but
BAL covers it by hiring in following two categories.
Management Trainee Officers. (Recruited once in a year)
Junior Officers. (Recruited according to the need)
Recruitment
BAL recruits both fresh and experienced persons on regular basis to support
its growth strategy. A part from this, BAL recruits in both categories (MTOs & JO) as
discussed above. For this BAL uses following internal and external recruitment
sources:
Newspapers
BAL advertises the vacancies in popular newspapers, which can either be in
English or Urdu papers according the job and situation.
Website
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BAL has its own website, where it advertises the vacancies. It also has
electronic data bank where the interested persons apply for the jobs.
Direct Applicants
Fresh graduates keep on submitting their CVs to the HR Department from
time to time. HRD selects the effective persons for interview and tests
whenever a job is vacant.
Selection
After the recruitment the selection of most reliable and efficient persons is
done at BAL under the supervision of HR personals. The selection process at BAL is
sequenced as follows:
a. Entry Level Test:
After recruitment all the candidates have to give an entry-level test.
Test is comprised of, General Knowledge, English, Math, Accounting and
other subjects which might vary according to the caliber of the job. Those who
clear the test are proposed to proceed further for the selection process and
the remaining are short-listed.
b. First Interview
The selected candidates have to take the 1st interview, which is
conducted by a team of Subject Matter Experts including HR officials. The
candidates are again short listed by the interviewers.
c. Second Interview
Now the Vice President - Human Resource, again interviews the next selected
lot.
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d. Third Interview
Finally, Senior Vice President of HR interviews the successful candidates.
Medical Test
The selected candidates submit their medical reports of the required medical
tests. If a candidate is medically unfit, he or she is given a recovery period of 3 4
months.
Training and Development
BAL also conducts the training of the selected candidates, which is conducted
by the Training Wing in alliance with HR and other related departments. The high
leverage training is done in two main areas;
Banking (General Banking, Credit Division, Foreign Trade):
Personality Development:
As hiring is done in two categories (MTO and JO), so because of the
difference in ranking and working methodology, the training needs for both are
varied. Among various training methods, classroom and OJT are most commonly in
practice in BAL. Other than the training of new hires, there are more than 50
Refresher Courses for the improvement and development of current employees.
Employee Development:
Regarding employee development, following approaches are followed by BAL:
On Job Degrees and Certifications. Sabbaticals for Training.
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Assessment Centres.
Performance Appraisals.
Employee Assistance Program.
Interpersonal Relationship Development.
Compensation
HRD of BAL has kept its compensation and equity practice confidential.
Performance Management
BAL has an effective performance management system. HRD in alliance with
the different departments evaluates the performance of employees at annual basis.
For this, Annual Performance Report (APR) of each employee is made and 3600
feedback is used as a tool for completion of APR..In APR employees are evaluated
on basis of following skills and are graded on scale of grades starting from A to E,
which have different percentages.
Leadership Qualities.
Marketing Skills.
Productivity.
Initiative.
Communication
Job Knowledge.
Technical Knowledge. Etc.
This is the most important practice of HRD as, the promotions, increase in salary,
training needs of an employee etc. all are dependent on it.
TRANING
During my finding I studied the training and development process of BAL
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Training At BAL
As priory written in the scope of study that BAL is managing its training needs
from a single Training Centre, so it is feasible to elaborate some facts about the
Training Centre before breaking the training methodology.
The training centre was established in 1999, since then it is managing the training
needs of Punjab, NWFP and AJK region. It also handles the Sindh and Baluchistan
Region in alliance with main branch of Karachi. For Sindh and Baluchistan, Training
camps work to fulfil the needs of the region, this is done 3 4 times in a year.
HR and Training Wing make all strategies side by side. The Training Wing
implements these strategies and the result of implementation is reported to HRD,
which is further reported to the President.
Areas Of Training
The training at BAL is done at two broad areas, which are further categorized, these
are;
a. Banking:
b. General Banking
Credit Division
Foreign Trade
c. Personality Development
Management. (Leadership & Controlling etc)
Marketing and Selling
Behavior Modeling. (Personality development)
Communication Skills. Etc.
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Information Technology training is also given to the related employees in
collaboration with the Information Technology Department (ITD).
Who Need Training
The new hires always need training. There are two types of new hires;
a. Fresh Hires
Fresh employees are those who have recently completed their studies
and have no or little experience of banking. Such employees need to attend a
formal training session to get aware of banking technicalities. These fresh
selected employees are categorized in two separate parts according to their
posts; hence the training methodology of both differs with each other.
b. Management Trainee Officers (MTO)
MTOs are hired only once in a year, and they are selected for middle
level executive posts, so their training is quite complex as compared to JOs.
After the selection, they have a Theoretical Training Sessionof 2 3 months
followed byOn Job Training (OJT) for further 3 years. The theoretical training
session is conducted by the Training Center, where formal lectures and
presentation techniques are adopted. Whereas, the OJT is conducted at the
relevant branch and department. MTOs get training in all the areas of banking,
i.e. General Banking, Credit, Foreign Trade and Personality
Development.
c. Junior Officers (JO)
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Junior Officers are hired according to the needs of different branches
and departments. There work is non-managerial and clerical in nature, so their
training needs are not as complex as of MTOs. After the selection, JOs have
to attend only a 2 weeks Theoretical Training Session. They get training
only in the General Bankingand Personality Developmentand not in Credit
and Foreign Trade. No OJT is conducted for JOs.
d. Experienced HiresExperienced employees are those who have already worked in other
banks at executive posts. Such employees do not need any formal training
session; they are informally trained in their specific area.
e. Current Employees
BAL offers more than 50 Refresher Courses in different aspects of
banking, so that the training needs of current employees are fulfilled.
Training Need Assessment Process
The identification that either the training of current employees is necessary or
not depends on the results ofAnnual Performance Report(attached in annexure).
In APR the Training Pressure Points might be the following one;
Poor Performance of Employees.
Lack of Skills in Employees.
Employee Himself Asks For Training.
His Boss Identifies Him For Training.
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Other than APR, following are also some of the valid reasons for conducting the
training program.
New Hires.
New Technology.
Internal Growth. (New Branch)
New Services.
Comments on the organizational structure
Various organization make their own structure to perform efficiently its depend on
their resources and utilization of work force. Organizational Structure of the bank
alfalha is flexible which allows employees to work more freely and effectively to
meet the given targets in the specific time. Because in a flexible organizational
structure like bank Alfalah has provided the best performing environment where
everyone can share their ideas with each other, and try to make their best
communication to achieve the organizational objectives of the bank. I have
myself experience the behaviour of top level management and middle level
management they are as cooperative as friends. Such organizational structure
allowed me to learn and excel my educational treats more practically and
effectively.
Plan of my internship Programme
A brief introduction of the branch where i did my
internship.
I worked in Bank Alfalah Limited Gulberg Branch situated at
125-E /1, Gulberg III, main Boulevard, Lahore.
Telephone No. 0092-42-5877800-08 Fax No. 0092-42-5754900
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Starting and Ending dates of Internship
I went to complete my internship program at BAL, Main Boulevard Gullberg
Lahore. I started my internship on 1st June, 2010 and completed on 12th July, 2010.
For the period of six weeks, I never felt any boredom in that refreshing environment
where I havent seen any dispute or ordinary organizational politics. Besides it, there
was no manager-subordinate discrimination among the staff members. The
remarkable cooperation among the employees is one of the major causes of the
success of not only the branch but the bank as well.
Names of Departments, I got training
For first four weeks I got training in Operations Department and last two
weeks in Consumer Banking.
Training Program
Operations/Activities of Departments I Worked in
1.Operations Department
Operations departments has to perform following major activities.
Clearing
Transfers
Remittance
Cash Transfers
In big branches of Bank Alfalah all above activities are performed by separate
departments but in case of a small branch all the activities are performed by the
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same operation department. This operation department is also called the transact
department.
Clearing
Clearing department is meanly responsible for clearing all kinds of checks
received by the bank. These checks may differ in kinds like:
Inward Clearing
Outward Clearing
Online Clearing
Outwards Bills for Collections
Inward Clearing
Inward Clearing is done when bank alfalah account holders draws a cheque
in favour of an account holder which does not belong to alfalah bank. The
processing of inward clearing consists of following steps.
e. Operations department received cheque from NIFT.
f. All the particulars are verified by the bank officer. If any ambiguity is found
then the cheque is marked as returned, giving the reason with it.
g. If there is no fault found then the cheque is posted in the system and the
customers account is debited.
h. Returned cheques particulars are fed in the O/W returned of inward
clearing registered and are send to NIFT.
Outward Clearing
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The process of clearing the cheques in favour of Bank Alfalah drawn by non
Alfalah Bank customers and the amount is transferred to Alfalah Banks account is
called outward clearing.
The process of outward clearing consists of following steps:
d. Operations department of bank alfalah receives the cheque.
e. Customers account is credited in favour of whom cheque is drawn.
f. Cheque is stamped as cleared and sent to the other bank through NIFT.
If the cheque is returned in the next few days, the cheque amount is debited
from the customers account and cheque is posted to the customer. Returned
cheque record is kept into cheque return register.
Online Clearing
Online clearing usually takes place when a cheque is drawn by customers
which does not belong to Alfalah Bank in favour of Alfalah Bank customer but the
amount is deposited into Alfalah Bank. In this case the person who had drawn the
cheque should have an account with the Alfalah Bank.
The process of online clearing consists of following two steps.
c. The bank sends the cheque as an outward clearing through NIFT.
d. If the cheque is cleared the amount is credited to alfalah bank using the
online transferring software.
Transfers
Alfalah Bank uses bank smart software for transfers. There are two types of
transfers:
c. Internal Transfers
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Internal transfers usually take place between two Alfalah bank customers
having account in the same branch.
d. Online Transfers
Internal transfers usually take place between two Alfalah bank customers
having account in the same branch using online transfer facility.
Remittances
There are two kind of remittances.
Pay Order
Pay order is normally used within the same city. It is a safe way of carrying
money instead of cash.
Demand Draft
Demand draft is normally used when someone wants to transfer money to
someone outside the city.
There are two types of demand draft.
Outward DDs
Inward DDs
Cash Transfers
The cash transfers are the responsibilities of transact department. It is liable
for all cash deposits and withdraws made by Bank Alfalah.
Consumer Banking
Consumer banking is a vast field deals in many lending areas as mentioned below
Credit Card
Debit Cards
Auto Loans
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Credit Cards.
Alfalah Bank offers different kind of credit cards to different people depending on the
pay back capacity.
The major credit cards offered by the bank Alfalahare followings.
Platinum
Gold & Silver
Young Professional
Women Exclusive
Student Card
Supplementary Card
Visa Mini
Awami Card
Names and properties of credit card offered keeps on changing as required with the
passage of time. Credit Limit is offered normally by checking the credit history of
the customer and his paying back capacity.
Benefits and features of credit card offered by BAL.
Powered by VISA
No Joining / Annual / Renewal fee
Phone Banking Facility
Utility bills payment
Auto Debit instructions
SMS for card usage
Mini statement
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Cash withdrawal
Monthly Card Statements
Properties of the debit card offered by BAL
Powered by Visa Debit Card
Alfalah Hilal Card
Financial needs
Unlimited accesss
No Interest
No Mininum Income Requirement
No PIN required
Accepted 29 Million locations
Uses of Hilal Card.
Auto Loans
Auto loans facility offered by BAL is the major profit earning activity used by bank
Alfalah, following are the features and the benefits which interact customer to
come and avail these loans.
Quickest processing
No hidden charges
Minimum down payment
Complete repayment
Tenure period
Financing brand
Financing limit
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Corporate & Individual Car Leasing
Insurance
Repayments
Security
Detailed description of tasks assigned to me
I worked for about six weeks Bank Alfalah Ltd, Gulberg III, Main Boulevard,
Lahore as my internship organization.
There, I worked in two departments. I started up with account opening (operations),
where I worked for about one week and learned about different types of accounts,
and how to open a new account, etc. after that I moved towards Remittance where
i learned one week that how to transfer the money from one place to another and
one city to another city through pay order and demand draft, after completion in
remittance i joined transfers and i worked one week and learned about the different
transfers internal and online. At fourth week I worked in cash transfers which is
belongs to transact department and i learned about cash deposits and withdraws
methods ,during my internship in operations i worked under the supervision of the
Operation Officer.
Operations, Mr. Asad Ali Shah was at my internship in that department.
After working in Operations, I was moved to Consumer Banking, where I
learned to weeks that how to handle different kind of customers and how to
satisfied them with various kind of tactics at front desk during this period I seen
many situations between customers and bank staffs it was a totally unique
experience because I have worked under the supervision of Mr.Ali Raza who
encouraged me at every spot when i was confused. Gulberg branch has got a wide
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range of excellent services departments been supervised under the best ambiance
and a very well educated staff. The following list is showing the main departments
at Gulberg Branch.
Operations Department
Consumer Banking Department
Functions of management
PlanningPlanning is such kind of function which is performed by the top level
management which is following
Defining the goals and objectives of the organizations.
Establishing the strategies to achieving those goals.
There are two types of planning
In Bank Alfalah both kind of planning formal and informal has used.
Formal
Formal planning is such kind of planning which is written down, with
management focus in which rules and policies has prepared with shared focus of the
organization.
Informal
In formal planning, there are informal way used for the preparation of different
policies and rules which is at local discussions between the individuals of the firm
and they have no importance for the firm.
Objectives
The objectives of the Bank Alfalah are to make financial strength and to
generate profit for the organization.
The 2nd objective of Bank Alfalah is to satisfy our customer by providing them a
quality products and services at a reasonable cost.
At third step the objective of the organization is to expand our branch network around
the world.
There are two types of objectives of the Bank Alfalah.
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Short Term
The short term objective of the bank Alfalah is to increase our profit.
Long Term
The long term objective of the bank Alfalah is to best utilization of the
resources increase the profit of the organization at favourable cost.
Decision Making Process
Top Level Management
In Bank Alfalah all the decision making process has made at the top level ofthe organization.
Regional manager
Regional manager of bank alfalah makes all types of decisions at regional
level according to delegation of power.
Branch Manager
Similarly the branch manager makes all types of decisions at their branch
level.
Organizations Current Strategies.
In Bank Alfalah there are various kind of strategies has been used which is
followed.
Bank Alfalah has initiated an efficient and innovative banking system, by the
automated machines in different regions of Pakistan.
Bank Alfalah has building their long lasting relationship with the people to make them
loyal as well as to retain by providing a valuable service to their customers to meet
the needs of tomorrow.
Bank Alfalah is compared their banking standard according to their customers
requirements, therefore it has made a benchmark in the banking sector.
Bank alfalah is not only providing a excellent service to their clients, as well as
introduced new technology for the customer.
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The one of the most important strategy of bank alfalah is to maintain their well
positioned in the banking sector.
The main focus of the bank is to identify their banking relationship,
communication, their cooperate with every single customer to provide him a full
attention with utilizing their various resources to attain their financial goals.
The value of their culture on the basis that they provide a most important product
with the superior service.
The current strategy of the bank alfalh is to providing the best training to their
employees with greater resources for more attention towards their customers, which
not only increase their revenue as well as repute in the market.
Bank Alfalah is consists on one of the most high skilled and professional experts and
economist which providing the understanding with the local economy and to informed
about the various decisions of authorities which could harmful for the organization.
Bank Alfalah is one of the best single larger bank in the banking sector which has
opened Islamic branch.
The focus of the management of the bank alfalah is to create an international
standard in all over the world and gives their full attention to all the segments of the
world.
Organizing
Organization is a arrangement of the people to achieve specific goals. In our
society we have different kind of organizations some are working for the profits or
earnings and some are social organizations, for instance banks, hotels, and their are
some colleges, schools types of organizations, but every organization has some
common features or characteristics. Every organization has its own purpose to
establish itself which could be expressed in term of goals and achievements. Every
organization is consists on people to accomplish their goals.
At last in every organization there must be a structure of the firm to perform their
task.
Organizational Design.
Bank Alfalah structure.
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Swedens premiere bank is one of the largest banks in the Nordic region. Lars
Grunted (pictured) presided and group chief executive, oversees a business that is
organized around a decentralized structure with a network of some 540 branches in
Norway, as well as in nine European countries and six countries outside Europe. He
believes that the banks 30-plus years of developing its branch network has allowed it
to consistently grow market share and achieve a return on equality above the
average of its Nordic competitors are starting to copy Handelsbankens structural
model. Handelsbankens branch managers can choose their customers and product
mix. They also set staffing numbers and decide salary levels. All customers, private
and corporate, no matter what size, are the responsibility of a local branch.
Handelsbankens flat management structure and emphasis on personal responsibility
and consensus approach is well suited to the Swedish culture.
DepartmentalizationOrganizational structure could be utilized in efficient manners when the
structure of the organization is divided into various departments and each
department has assigned different kind of task to accomplish their goals. The
objective of the departments is to increase the efficiency and specialization of the
employees as well as to generate the revenue of the organization. Through various
departments achievement of the organizational task is quite easy, and task of the
whole organization is divided into various people. Every department is consist on a
specialize work force which they can get. There could be various aspects on which
an organization can divided their departments, for instance its depend on products
and functions of the firm. In every organization each department is directly or
indirectly interact with each other for the smooth working of the organization for
instance Human Resource department has needed the funds to purchase the
stationary or furniture for the firm in that case finance department has play the
integral role to prepare the budget for HR department, similarly marketing and theother department has made their communication for the accomplishment of their
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goals. Especially Information technology is one of the most important departments in
now days which is performing a giant role, to connect the whole organization at one
place with the help of networking whether it is inside the organization or outside. The
Bank Alfalah Gulberg branch has various departments which are performing their
task efficiently and effectively. Every department has made their connection with
other we can say that if we wanted to see the real departmentalization we should
have a look at bank where each department could not work without help of each
other for instance a person wanted to open his new account in bank alfalah, he will
fill the form and submit to the account branch then account branch will forward it to
the backend where the computerized process would be completed and next step will
start until the process completed. In bank alfalah every department provided the
complete information with excellent communication which could be understandable
for the employees, in operations department remittance, cash, credit, and I.T
department are all providing such kind of services which can satisfy their customers
as well as to build their repute in the market.
Span of Control
Span of control means number of employees working under the one officer.
The concept of span of control has been started many years ago, the main objective
to use the span of control is to save the resources of the firm as well as to increase
the authority of the officer. Many organizations used this strategy to make their
control possible on the employees, but the research has proved greater the span of
control will decrease the efficiency of the organization, however if span of control is
lower than efficiency of the firm would increase because when an officer can control
6 to 7 employees easily but if the employees would increase more than 10 then it
would be difficult for the supervisor to handle the all employees efficiently. Those
organizations who are handling larger span of control are enjoying their revenue.
Span of Control in Bank Alfalah is increasing widely because all the banks are
working under the one area manager, that shows the efficiency and effectiveness of
the management who have organized such kind of structure which decreasing the
cost as well as increasing the revenue of the firm with lower rate of employees.
Chain of Command
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Chain of Command means organizational hierarchy is control by a single
person who lo ok after the whole organizations activities, chain of command is a
traditional way of dealing with the employees. In bank alfalah there are two important
types of command which is used one is most important Central Command and 2nd is
Branch Command. Chain of Command is centralized power in Bank Alfalah which is
control by the higher authorities Group of Abu Dhabi and the all decision making has
been made at central level, the final authority is the Chairman who can take every
kind of decision with communication of their board of directors. Specially marketing
decisions which has the great importance made according to the centralized
procedure. Branch Command is a delegation of power has given by the chairman
and the board of directors which also have the importance because a branch
manager is a kind of person who can take the immediate decisions at the spot. A
branch manager in bank alfalah who have the command and control of their branch
where he can change the branch environment, but he also controlled by the regional
manager, and his task is restricted.
Centralization
Bank is a kind of organization where centralization is more or less its
depending on the functions of the department. In Bank Alfalah there are some
functions which are centralized like marketing, profit increase cost decrease increase
shares in the market and some where branch managers or area managers could
make their interference for instance in various operations such as account opening,
treasury functions and I.T operations which are performed by the direct regional and
area manager.
Decentralization
When the organization divided their centralized power into different
departments and officers is called decentralized process. In this process the power
has given to the officers who can take the decisions at their own level which is
conventional and daily routine based. For instance a branch manager can reject the
cheque, can interference in various departments, can stop their work on emergency
basis, and can take the decision on fire alarming situation.
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Formalization
In organization formulization is a process in which all the organization
activities, strategies, and policies formulized in an friendly environment where every
employees share their ideas freely, where attitude of the people are looking good
and where the conflicts and disputes have no place to stay, and then organization
convert their process in an efficient way to achieve their goals is called formalization.
Bank Alfalah is a highly discipline, like all the employees strictly adopt the
punctuality, there absence from duty has checked and if not available then
explanation has called and then notice is given by the manager. Such kind of
process and activities build the morale of the firm as well as create a discipline
environment in the organization.
Work Specialization
In earlier times no concept of work specialization has been introduced but with
the passage of time various theorist has invent the new methods of work which not
only make the way of process easily but also gives a new hope to improve the
efficiency of the labours, a work specialization is a step of the same process, at
earlier times many people achieved their task together which not only waste theirtime but also waste their labours.
Work specialization is a kind of work activity which is divided a work into
different task and every task is performed by a new people, for instance a tailor
master was cut their cloth before waving them but after the work specialization he
divided their task into different expertise, which is not only save their time as well as
money also.
In Bank alfalah every department consist on many expertise which not only belongs
to the account department but almost from every department I.T, Cash, Credit,
Marketing, etc performed their role efficiently to achieve the objectives of the
organization.
Managing Change and Innovation
Managing change and innovation is the fighting job for todays organizations.
Change is most important process in every organization where the change is neededbut at first organization should make sure that change is necessary for the firm and if
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the essential then at first he should realize to their employees who will play the
integral part during the change, because change has performed by the employees of
the firm. In todays scenario many employees feel that new change will decrease
their reward, bonus, and their benefits and so on. Some people think that change will
decrease their power within firm, so therefore its management responsibility to adopt
the change successfully according to the desires of the employees. At once change
has occurred then management need to maintain their change with smooth handling
to their employees.
Similarly Innovation is also most important process within firm because those
organizations who did not make any kind of change will not sustain for long time, andthose who create innovation in their organizational process with new ideas are
processed successfully.
Bank Alfalah introduced a new change in their organizational process which
could be seen in their processes working activities their environment and throughout
the whole picture of the organization, They have managed their customers with a
new technique and new styles, they have offered their customers a lot promotional
schemes, Car Loan, Home Mortgage, with new offers infect they are satisfying their
customers as well as maintain the change and keeping their process.
Bank Alfalah have some expertise people who have innovative ideas to maintain
their market leadership, they have offered such kind of offers which has never
offered by any banking sector with reasonable interest. Bank Alfalah has introduced
a new Islamic branch with according to shariah Law, which is a excellent
achievement in this regard.
Managing IT and Communication
In bank alfalah I.T department has managed the whole system of the bank
with the help of software as well as technical expertise who spread the whole
networking process throughout the Pakistan. I.T department efficiently performing
their online transactions and online account process, they have efficiently complete
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their transactions among the other branches. I.T has provided a wide network for the
whole organization.
Bank Alfalah has made their communication both way Upward and
Downward.
At upward all the transactions and process which is started from lower level of the
firm is forwarded to the upward to the higher authorities to complete the process.
Higher Management forwarded the instructions inform of communication towards the
downward, and these all process is completed efficiently and smoothly, because all
the departments have the positive communication and interactions with each other.
Leadership
Is the process of influencing the people who are working under control to
achieve the organization goals. The person who influence and the authority on
others and has the managerial power is a leader. Bank Alfalah has a leader who has
the ability and skills to convert inputs into outputs to achieve the organization goals.
Traits of Leader
Bank Alfalah leader have the following traits and abilities in his personality.
Decision Making
Communication Power
Honesty
Strong Vision
Risk Taking
Interpersonal Skills
Competitive Skills
Discipline
Vision & Mission
Types of Leadership
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There are different types of leadership but the most popular is following here.
Dictator
Democratic
Laissez fair
Democratic Leadership
The leadership of bank alfalfa have the Democratic style, because the big part
of the bank is consists on decentralized process therefore they have delegated theirpower of decision making, but almost they are working like a unit or a group they
have encourage their employees and give them motivation, which create a new hope
within employees.
Power and Politics
In Bank Alfalah there is no concept of power and politics because they have
already introduced a democratic style in organization and every employee is working
quite satisfactory.
Motivation
Motivation is belongs to the job satisfaction of the employees and there are
various factors which directly affected the job satisfaction for instance working
conditions, environment, social interaction, reward, motivation, encouragement, good
salary, etc these all factors directly affect the job satisfaction, if the all incentives are
given to the employees its mean they are satisfied otherwise decreasing job
satisfaction will also decrease the productivity of the organization.
In Bank Alfalah every employee are fully satisfied and all kind of incentives reward
bonuses, are given annually quarterly to the employees to increase their productivity
and efficiency.
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Early Theories of Motivation
Maslow Hierarchy of Needs
The management of Bank Alfalah are knows about the basic needs, of the
employees which is essential to performed their work activities, like Physiological
needs, Safety needs, Social needs, and self actualization needs, which are the basic
needs to survive. Thats why they are providing to their employees a good social
interaction with good incentives and bonuses which increase their efficiency to
performed well.
Controlling
Controlling means organization wanted to make sure that their organizational
system and structure are performing within control and giving a good output.
In Bank Alfalah there are following criteria to meet the desires approach.
Controlling Approach
Data Integrity
Means organization making sure about the integrity of the data which is used
during the process.
Bank Alfalah also check their records with intervals to ensure the accuracy of the
record.
Documentation
In bank Alfalah all the functions procedures, rules, policy, are in written
documented form.
These documentation are available when required.
Supervision
All the data records documentation is need for reviewing before making any
approval.
Controlling Standard
In bank Alfalah the controlling standard of the organization is quite efficient, in
banking sector bank Alfalah has make his own benchmarking and market
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leadership which is controlled by many years, and internally whenever a direction
has forwarded from the top management the whole organization is followed and
compliance the orders immediately, and every activity has performed according to
the rules and procedures which is shows that management has good command on
their controlling standard.
Controlling of Operations
Bank Alfalah are controlling their organizational operations quite excellent and
according to their plans which has made by the top management, however topmanagement has assigned the duties of the branch managers to control their
different operations and send the report to regional manager.
Controlling of Performance
During the working process in bank Alfalah all the banking activities has
monitoring by the manager, when a manager assigned a task to the employees he
checked his performance and time during the working process and it has written in
record, and then next time management try to increase the performance of the
employee and control their performance with using various techniques.
Controlling of information/Knowledge
Controlling of information is most important process in Bank Alfalah which is
performed within organizational hierarchy, the information and knowledge are two
best tools which has mostly used during the operations of bank Alfalah because a
good information flow performed their task well.
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Critical Analysis
On the basis of time i spent in bank Alfalah i have realized that there are some
critical issues needed to be discussed for improvement in the management process.
Followings are the few important points.
Coordination between manager and the other staff was not satisfactory as it is
supposed to be. For the development of a good organization it is pretty much
necessary to have a coordination meeting at the start of every day and another
winding up meeting at the end of every day.
There supposed to be a friendly environment where no one should feel
hesitation or restriction to go to the manager or other higher authorities if they face
any problem or ambiguity in the processing of particular accounts credit or remittance
activities.
Work, work and work is not only a good strategy to establish an efficient work
progress. There should also be other activities other then worked like small get to
gather on weekend to share one another problems and to find out the solutions it will
also help to reduce the stress of extra work load on staff.
Management of Bank Alfalah should allow to their staff to bring their ideas for the
improvement as well as for launching the new products.
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SWOT analysis
Strengths
Bank has a confidence on its customer service.
Bank Alfalah is backed by Abu Dhabi Group.
Bank Alfalah provides interest according to the Islamic Shariya by Islamic
Branch.
Bank Alfalahs strong market share has its great strength.
Bank Alfalah has most improved information technology structure which
has enhanced its branch network around the world.
Bank has friendly environment.
It provides the best products among all the banks
It is constantly expanding its branches network.
It is using latest banking techniques(online + telephonic)
All the branches are fully computerized.
Each and every branch is equipped with ATM Machine.
WEAKNESSES
No facility on behalf of ACBL ATM is offered regarding transfer of funds
between PLS savings account and current account of same customer
through same ATM card.
BAL does not issue traveler cheques.
In some branches tokens are not issued to customer so the chances of
doubling are present.
Personal Lockers are not available in all the branches.
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Internal audit is not held.
Number of staff is less so they have more work load.
OPPORTUNITIES
BAL can add paying in facility to its ATM as it happens around the world
and it can reduce the work load on staff.
BAL can also introduce the drop-in box services for the customer. This way
customer will be able to pay in cash or cheques instead of waiting in long
ques.
BAL still has the opportunity to expand its branches network to
international level.
THREATS
A big threat for BAL is its competitors who are almost offering the same
facilities as BAL.
Another danger, BAL is facing is the economic situation in Pakistan. So,they will have to be very much careful while making lending policies.
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Recommendations
Following are the some of the recommendations, I am offering to Bank Alfalah
Limited. These recommendations are based on internship time which I spent
with them and SWOT analysis.
BAL should add paying in facility to its ATM to reduce the work load on staff.
BAL should introduce the check or cash drop-in box services for the customers.
This way customer will be able to pay in cash or cheques instead of waiting in
long ques.
BAL should open more bank branches in countries like United Kingdom and
European Countries where we have many Pakistanis living and working.
New performance measurement approaches like, Management by Objectives
(MBO) and Productivity Measurement & Evaluation System (ProMES) should
be adopted to make the results more accurate as the bank is in growth stage.
In 3600Feedback method, there are chances of errors due biasness and halo-
factor. To avoid this error, Rater Error Training and Rater Accuracy Training
should be given to the employees.
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Reference & Sources
1. Books:
Human Resource Management.
Leadership and Team Management
Principles of Management
Organizational Behaviour
Production Operation Management
2. Websites
www.bankalfalah.com
www.sbp.org.pk
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Annexes
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Additional Information
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