Submitted To:

Mr. Ghulam Hussain.

(Lecturer)
Prepar
ed By:

Group no. 8
Memb
ers:

Sweelam Khurshid 055

Shafiq ur Rehman. 065

Mudassar Latif. 060

Ali Nawaz. 088

Madiha Iqbal. 110

Sadia Aslam. 112

1
 Acknowledgment

First of all, we are humbly grateful to ALLAH ALLMIGHTY WHO enabled us to complete this
project and make us what we are today.

After that, we are greatly indebted to our beloved parents who not only facilitated us with
everything that helped and supported us get so far in our educational career and achieved so
much but also encouraged and loved us so much. This enabled us to work hard and achieve our
goals.

Through this acknowledgement note, we would like to thank all those people who helped us in
the completion of this project. Without them, it would not be possible for us to attempt it. Our
friends, our university fellows who helped us gather data related to this project and also gave us
related ideas & suggestions, our teacher.

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 Executive Summary

This project focuses on giving an insider view of the Human Resource Department structure, its

working and policies within Allied Bank Limited. As HR begins to play an ever-increasing role

in the survival of the modern enterprises, employee concerns emerge as the most critical but often

ignored function of the technological environment within the modern organization.

Allied Bank Limited serves this critical function with utmost importance, deciding what staffing

needs they have, recruiting and training the best employees, ensuring they are high performers,

dealing with performance issues, and ensuring personnel and management practices conform to

various regulations along with managing approach to employee benefits and compensation,

employee records and personnel policies.

This project delineates the HR policies currently practiced at Allied Bank limited. How

employees are recruited and retained, the training given to employees, how employees’

performance is accessed and their pay structure is devised accordingly and how the bank retains

valuable employees in the organization

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 Table of Contents

Chapter 1: Introduction ..............................................................................................5

1.1 Back ground & History........................................................................................6
Background.............................................................................................................. 6
History ....................................................................................................................7
1.1.3 Branch network ............................................................................................11
Products & services...................................................................................................14
1.2.1 Products.....................................................................................................14
1.2.2 Services ..................................................................................................... 15
Management Structure.............................................................................................15
1.4 Departments..................................................................................................... 16
Chapter 2: Human Resource Department.................................................................17
2.1 History ..........................................................................................................17
2.2 Functions of HRD...........................................................................................18
2.2.1 Human Resource Planning ......................................................................18
2.2.2 Job Structure ...........................................................................................20
2.2.3 Recruitment & selection .............................................................................21
2.2.4 Training & development .............................................................................21
2.2.5 Remuneration & reward..............................................................................21
2.2.6 Industrial rewards ......................................................................................22
.....................................................................................................23
Chapter 3: Recruitment & Selection..................................................23
3.1 Policy of Recruitment ......................................................................................24
Chapter 4: Training & development..........................................................................27
4.1 Orientation & Introduction ..............................................................................28
4.2 Training Policy..................................................................................................28
Chapter 5: Performance management & system......................................................31
5.1 Performance Appraisal Cycle ........................................................................32
5.2 Appraisal Criteria ..........................................................................................32

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Chapter 6: Rewards & remunerations.......................................................................33
6.1 pay structure ...................................................................................................33
6.2 benefits ........................................................................................................... 34
Chapter 7: Industrial relations...................................................................................35
Labor Union ........................................................................................................... 35
7.2 Health & Safety .............................................................................................36
Bibliography..............................................................................................................37

Chapter 1: Introduction

5
 1.1 Back ground & History

Background

Allied Bank Ltd. is one of the largest private sector banks in Pakistan in terms of assets, deposits
and advances. The Bank is principally engaged in providing corporate banking facilities to
Pakistan’s most valued corporations and institutions. Additionally, it also provides general
banking services to commercial, agricultural, industrial and individual customers throughout
Pakistan.

Established in Lahore in 1942, ABL was the first Muslim bank in Pre-partition India. It was
initially known as the Australasia Bank, with a paid up share capital of PKR 0.12 million, and
was renamed as Allied Bank of Pakistan Limited in 1974 and Allied Bank Limited in 2005.
Today the Bank stands on a solid foundation of over 60 years of its existence having a strong
equity, assets and deposits base offering universal banking services with higher focus on retail
banking. The Bank has the largest network of on-line branches in Pakistan and offers various
technology based products and services to its diversified clientele through its network of more
than 800 branches.

The Bank has the largest data communication network with all its branches offering real-time
online banking. The Bank offers a full range of retail, commercial and corporate banking services
with a focus on service delivery through technology.

Vision:

To become a dynamic and efficient bank providing integrated solutions in order to be the first
choice bank for the customers.

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Mission:

• To provide value-added services to our customers

• To provide high-tech innovative solutions to meet customers requirements
• To create sustainable value through growth, efficiency and diversity for all stakeholders
• To provide a challenging work environment and reward dedicated team members
according to their abilities and performance
• To play a proactive role in contributing towards the society

History

Established in December 1942 as the Australasia bank at Lahore with a paid-up share capital of
PKR 0.12 million under the Chairmanship of Khawaja Bashir Bux, and his business associates,

7
including Abdul Rahman Malik who was amongst the original Board of Directors, the bank had
attracted deposits, equivalent to PKR 0.431 million in its first eighteen months of business. Total
assets then amounted to PKR 0.572 million. Today Allied Bank's paid up Capital & Reserves
amount to Rs. 10.5 billion, deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion.
The Allied Bank's story is one of dedication, commitment to professionalism, adaptation to
changing environmental challenges resulting into all round growth and stability, envied and
aspired by many.

1942 - 1947: Pre Independence:

In the early 1940s the Muslim community was beginning to realize the need for the active
participation in the field of trade and industry. The Hindus had since the late 1880s established a
commanding presence in these areas and industry, trade and commerce in the undivided Sub-
continent was completely dominated by them. Banking, in particular, was an exclusive enclave of
the Hindus and it was widely believed, and wrongly so, that Muslims were temperamentally
unsuited for this profession.

It was particularly galling for Khawaja Bashir Bux and Abdul Rahman Malik to hear the gibe that
Muslims could not be successful bankers. They decided to respond to the challenge and took lead
in establishing this first Muslim bank on the soil of Punjab that was to become Pakistan in
December 1942; by the name of Australasia Bank Limited.

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

1947 to 1974: Australasia Bank:

8
Australasia Bank was the only fully functional Muslim Bank on Pakistan territory on August the
14th, 1947. It had been severely hit by the riots in East Punjab. The bank was identified with the
Pakistan Movement. At the time of independence all the branches in India, (Amritsar, Batala,
Jalandhar, Ludhaina, Delhi and Angra (Agra)) were closed down. New Branches were opened in
Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it
network spread to Multan & Quetta.

The Bank financed trade in cloth and food grains and thus played an important role in
maintaining consumer supplies during riot affected early months of 1948. Despite the difficult
conditions prevailing and the substantial set back in the Bank’s business in India, Australasia
Bank made a profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it

lost 51 branches in the separation of East Pakistan which
became Bangladesh. The bank did well in despite losing lot
of its assets. By the end of 1973 the bank had 186 branches
in West Pakistan.

1974 to 1991: Allied Bank:

In 1974, the Board of Directors of Australasia Bank was dissolved and the bank was renamed as
Allied Bank. The first year was highly successful one: profit exceeded the Rs 10 million mark;
deposits rose by over 50 percent and approached Rs 1460 million. Investments rose by 72 percent
and advances exceeded Rs 1080 million for the first time in bank history. 116 new branches were

9
opened during 1974 and the Bank started participation in the spot procurement agriculture
program of the Government. Those seventeen years of the Bank saw a rapid growth. Branches
increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs 1.46 billion, and Advances and
investments from Rs 1.34 billion to Rs 22 billion during this period. It also opened three branches
in the UK.

1991 to 2004; Privatization:

As a result of privatization in September 1991, Allied Bank entered in a new phase of its history,
as the world’s first bank to be owned and managed by its employees. In 1993 the First Allied
Bank Modaraba (FABM) was floated.

After privatization, Allied Bank registered an unprecedented growth to become one of the
premier financial institutions of Pakistan. Allied Bank’s capital and reserves were Rs. 1.525
(Billion) and assets amounted to Rs. 87.536 (Billion) and deposits were Rs. 76.038 (Billion).
Allied Bank enjoyed an enviable position in the financial sector of Pakistan and was recognized
as one of the best amongst the major banks of the country.

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

2005:

In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and vested in with and
into Allied Bank Limited. ILL shareholders were issued ABL shares in lieu of the ILL shares
held by them. Application for the listing of ABL shares in all the Stock Exchange Companies of
Pakistan was made. ABL was formally listed and trading of the shares of the Bank commenced
w.e.f. the following dates.

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 • Islamabad Stock Exchange- 8 August 2005
• Lahore Stock Exchange- 10 August 2005
• Karachi Stock Exchange- 17 2005 August
• Faisalabad Stock Exchange- 26 August 2008

2007:

Muhammad Aftab Manzoor has taken charge as CEO and President of the Bank on August 13,
2007. He is an ex-president of MCB bank Ltd. In 2008, Allied Bank has won The Corporate
Finance House of the Year (Banks) award for the second consecutive year.

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

1.1.3 Branch network

Allied Bank is now one of the largest banks in Pakistan, operating through a network of 766
branches in over 300 cities and towns offering real-time online banking. The bank has in place

11
the largest ATM network in the country with 502 ATMs in more than 145 cities and towns across
Pakistan.

Some major cities where Allied Bank Limited has it branches are depicted in the subsequent map

12
13
 Products & services
1.2.1 Products
1. Deposit products
a. Current account
b. Allied business account
c. PLS saving account
d. Allied basic banking account
e. Foreign currency deposits
f. PLS term deposit
g. Allied Munafa account
h. Manahana Amadni package
i. Allied Bachat scheme
j. Behtar Munafa account
k. Behtar Munafa term deposit
l. Allied e-savers account

2. Alternative delivery channels

a. Allied Cash + Shop Visa debit card
b. Online banking
c. Internet banking
d. Helpline

3. Consumer products
a. Visa Credit card

4. Lending products
a. Seasonal finance
b. Agricultural finance
c. Import export business / Trade finance

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 d. Running finance
e. Demand Finance

5. Corporate leasing

1.2.2 Services
1. Home Remittances
2. Remittances
3. Hajj services
4. Utility bills
5. Lockers
6. Commodity operations
7. ATM network

Management Structure

The management of the bank comprises of seasoned bankers led by CEO and is divided into
different groups on functional basis. At the management level, there exist six major committees
including

• Management Committee,

• Human Resource Committee,

• Risk Management Committee,

• Assets and Liabilities Committee,

• Compliance Committee

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• IT Steering Committee.

1.4 Departments

No bank can be expected to operate efficiently unless all employees with in a department,
division or section know:
a) From whom they are to receive the work they are to do.
b) What they are supposed to do with the work after they receive it.
c) How they are supposed to handle the operation of item.
d) When they are supposed to do work, perform the operation.
e) To whom they give the item or function after finishing it.

To perform the functions efficiently the bank has its Head Office in Karachi, which is controlled
by the president of the Bank. The bank has regional office under head office in major areas of the
country. Regional Chief heads this office. The region Consist of many zonal offices with a zonal
chief. There are many branches in a zone to carry the functions effectively and performing
customer services locally.

ABL Ltd. is functionally organized into divisions and divisions are further divided into
department and sections. Every province has its own regional office and zonal offices. Executive
vice president heads the divisions and departments are further headed by OGI (Officer of Grade
I). Manager heads branches.

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 Chapter 2: Human Resource Department

HR (Human Resource) management is an often-underestimated task in work-environments.

However, it is adequate and conscientious HR management that will establish and retain a
qualified, well-cooperating workforce and therefore, ultimately, an increase of organizational
growth, efficiency, and profitability.

Allied Bank is amongst the leading commercial banks in the country and has always played a
pioneering role in introducing innovative, technology-based banking services. The role played by
its human resources is highly valued, both in terms of their skills and dedication in implementing
unique banking services.

2.1 History
Allied Bank of Pakistan always aims to achieve edge in human resource by:

• Inspiring and motivating its people.

• Developing its people to strive for higher standards.
• Driving an open minded and enterprising corporate culture where people through
leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed.
• Attracting and recruiting the best talent

Allied Bank has a very defined and well structured department and its various policies of keeping
each employee productive part of the organization are intoned with the corporate world’s
requirement.

Employees in the company are largely committed to their organization and have shown progress
in the company. Employees are satisfied with the HR department of Allied Bank. Humans are the
basic tool for having competitive edge in the market for most of the organizations and Allied

17
Bank is one of these. Allied has one of the best HR systems in Pakistan that gives it an edge over
its competitors. The development of human resource continued to receive utmost attention of the
Management. Towards this end the Bank inducted qualified personnel, such as MBAs &
M.Coms who were also required to undergo vigorous extended training of the existing personnel
training programs continued with main thrust on computer appreciation to encourage computer
usage in the Bank.

2.2 Functions of HRD

All the functions of HRM are proper working in the organization to enhance the productivity of
workforce.

2.2.1 Human Resource Planning

Human resources (HR) planning is a process that identifies current and future human resources
needs for an organization to achieve its goals. At ABL HR planning serves as a link between
human resources management and the overall strategic plan of an organization.

Human Resource Department is fully functioned in the organization. It indicates the current and
future need of human resource. It also planned according to the need of the organization. For
Allied Bank Limited, Human Resource Planning (HPR) is the pattern of planned human resource
deployments and activities intended to enable the organization to achieve its goals. Hertz believes
in having the Right number of people with right skills at right place at right time to implement
organizational strategies in order to achieve organizational objectives

In light of the organization’s objectives, corporate and business level strategies, HRP is the
process of analyzing an organization’s human resource needs and developing plans, policies, and
systems to satisfy those needs.

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HR Strategies:

Human resource department is putting its efforts towards nurturing a winning corporate culture
and building organizational capabilities by ensuring that its people at all levels are both able and
willing to perform at consistently exceptional levels. At Allied Bank the people have been
empowered to a large degree by minimizing out dated rules /regulations and plan to further
eliminate the bureaucratic barriers to capitalize on their ingenuity and talent.

HR strategy refers to the specific human resource management course of actions that a company
pursues to achieve its objectives. But how these strategies/policies/practices are formulated and
implemented at Allied Bank. There is a whole process behind this.

The top team continues to play its role in providing the guidance and support to people at all
levels. The HR (people’s) function ensures that it leads the transformational change by nurturing
a climate, which would help in converting the huge potential at disposal of the company into
world-class performance.

The active and effective role played by HR in people development at different levels
organizational, departmental and individual is considered in Allied Bank to be one of the most
critical factors leading to the development of a winning corporate culture. The effort continues to
be directed towards developing the skills of the shop floor employees, improving competencies
of Business Support Officers (BSOs), and enhancing the leadership qualities of managers.

Like most big organizations, the development of HR Strategies is also done in accordance with
company’s mission. First, Strategic planners analyze what actually is the prevalent culture of the
organization, what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of
business and its market, and on the basis of all the above analysis, company’s strategic plan is
established. In the end HR strategies are formulated in accordance with this overall
business’/companies’ strategic plans.

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2.2.2 Job Structure

2.2.2.1 Job Analysis

It includes the following two types.

a) Job Description

b) Job Specification

2.2.2.1.1 Job description

It describes the job status means role statement of the employee.

All new employees of the Bank should initiate preparation of their Job Description and should
get it finalized with the help of their immediate supervisors within 30 days of joining at their
place of posting. The Job Description duly signed and agreed by both the employee, his/her
immediate supervisor and manager should be sent to HRD for record. Concerned Branch
Managers/ Area Managers (and in case of Head Office Staff, concerned Departmental Heads will
be responsible for compliance of this requirement

The purpose of the Job Description is to clearly define the job responsibilities of each employee
and to ensure that the employees are made aware of and understand what is expected from them.
The standardized Job Description Form is made available to all employees at the time of joining.

Components of Job Description Form:

ABL’s Job Description Form has a standardized format, which comprises of employee’s brief
service particulars like name, Job Title, Department/ Branch’s Name, salary range, basic and
gross. It also contains the name of the reporting officer, with his job title and salary range

ABL’s JD Form include what employee actually does, how he or she does it, and what the job’s
working conditions are. It contains sections that cover the following information about the job:

• Purpose of Job (Summary)

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 • Primary duties and responsibilities
• Secondary/ Additional Responsibilities
• Performance Standard
• How many staff reporting to employee
• Working relationships/ Contacts within and outside the Bank
• Job Specification which shows the desired human traits and experience for the job (to be
completed by Reporting Officer)

Job Description form has to be signed by the Job Holder, immediate Reporting Officer and
Branch Manager/ Departmental Head at HO.

2.2.2.1.2 Job specifications

It describes the minimum qualification of the job

2.2.3 Recruitment & selection

Recruitment & selection is made according to the nature of the job in the organization. HRM
department hires the competent applicants in order to achieve the desire result.

2.2.4 Training & development

HRM department is working as learning organization in which innovation is made through
training & development. For this purpose organization held the annual training meeting
(according to need & change in the environment)

2.2.5 Remuneration & reward

Allied Bank has adopted the policy of motivating its employees through increase in salaries,
enhancement in the coverage and amount of group insurance, reimbursement of educational
expenses, improvement in medical facilities and recognition of their contribution etc.

21
2.2.6 Industrial rewards

Organization has good relation with other banks (Banking Industry) because every bank makes
transactions with other banks on the behalf of customers. Every bank wants to establish good
relation with banking industry (Pakistan Bank’s Association)

22
 Chapter 3: Recruitment & Selection

After the Privatization of ABL central office at Karachi is dealing with the appointments to
different officers posts. And the central office also fills other executive posts. For certain posts
the executives also have right to appoint the qualified persons. But the main criteria of
appointment are by test and interviews.

Recruitment is an act of seeking prospective new employees or members for an organization.

Recruitment is a vital function for an organization to maintain its personnel. In Allied Bank, the
activity to fill a vacancy or a new job starts with the requirement communicated by the respective
managers to the HR department. The HR department then looks for the possibilities of internal
and external recruitment.

Flow Chart of R & S:

If there is any vacancy in any department then HOD makes a form in which all the detail of
vacancy is written according to the need in the department. HOD writes the Job Grade and Pay
scale in the form which is called Personal Requisition Form. The flow chart starts with vacancy
and ends with contract letter.

• Vacancy
• Personal Requisition Form
• Advertise the Vacancy
• Written Test
• Short Listing
• Interview
• Reference & Background Verification
• Offering the Job

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 • Employee Agreement
• Contract Letter
Effective recruitment is important in achieving high organizational performance and minimizing
labor turnover. ABL by and large has following aspects in mind when practicing recruitment
practices:

• Manage and measure recruitment & selection as an ongoing core process to foster
continuous improvement.
• Identify and target multiple, rich sources of candidates and actively market to them.
• Develop strong Internet recruiting capabilities to drive recruitment process efficiency
and effectiveness.

3.1 Policy of Recruitment

Internal Recruitment:

It includes the following

a) Transfer (horizontal movement in the same jobs)

b) Promotion (lower grade to upper grade)

ABL prefers the internal sources of recruitment because old employees are familiar with the ABL
policies it also saves the hiring & advertisement cots. In Allied Bank, internal recruitment is
done for the managers of the higher grade and directors. When a position is vacant, the HR
department views the past performance of the people working at lower levels than the vacant
position and chooses the right person who is promoted to that position.

At the manager and director level, the internal recruitment process is mostly carried out but when
managerial position is vacant and a suitable person is not available for the desired post from with
in the organization then external recruitment is carried out.

24
External Recruitment:

For external recruitment in Allied Bank, the line managers are required to make a requisition
form for the job in which they have to mention their need taking in account the budget for
establishment and salaries for the position of Management, Business Support Officers and
Workers. Role profile for the specified job is also prepared matching up the requirement and the
grade of the job. Training period is also specified on the requisition form.

The requisition form along with the role profile is sent by the line manager to the functional
director for his approval and then forwarded to HR Manager. The HR manager confirms the
availability of budgets required for establishment, salaries and cost of advertisement for the job.
After all this, the requisition form along with the job profile and the budget forecast is sent to the
HR Director for his final approval.

After approval from the HR director the HR manager and the line manager work hand in hand to
prepare job and person specifications for advertising or giving to the Head Hunters. The sources
that Allied Bank uses to attract applicants are:

• Inviting applications through advertisement

• Recommendations from the head hunters
• Applications obtained from the data bank of Allied Bank where direct applications are
received from time to time.

After a substantial amount of applications have been received, the line and the HR managers
again work together to shortlist the applications. This is done by carefully going through all the
application and by giving different weight age to the following criteria:
• Quality of early schooling

25
 • Grade obtained
• Extra Curricular activities
• Overseas travel and education
• Age
• Target University
• Relevant experience

The HR Department then issue call letters to the short listed candidates along with blank
application forms by Date, time and venue for the preliminary interview is advised and
candidates are asked to bring along completed application forms. A two-member panel of HR
and line management carries out competency-based interviews focusing on functional skills and
managerial and supervisory skills.

After the preliminary interview is cleared people applying for different jobs are tested in different
ways. The following management competencies are assessed by a panel of cross functional
assessors In the case of management selection:
• Communication skills
• Resource management
• Rational decision making
• Influencing
• Creative thinking
• Business development

The HR department is responsible for overall administration of the assessment centre including
training of the assessors. The HR department provides details of remuneration package and
terms and conditions of service. The HR department also prepares appointment letter, service
agreement and finalizes other documentation for service record. For this purpose ABL also
selects the some professional institutes for R & S

26
 Chapter 4: Training & development

Allied Bank Limited has five training academies, two in Lahore, two in Karachi, and one in
Islamabad. In these training academies the new as well as the existing staff get training. When a
new employee comes in ABL then most often he is sent to any of these academies for training.
The training period may be minimum of one-month up to maximum of one year. The training
period depends upon the nature of the job. During the training the new employees are acquainted
with all the necessary information about their jobs.

Some general benefits ABL extract from employee training are:

 increased job satisfaction and morale
 increased motivation
 increased efficiencies in processes, resulting in financial gain
 increased capacity to adopt new technologies and methods
 increased innovation in strategies and products
 reduced employee turnover

When any change occurs in the policies of the Bank, then the seminars are held in these an
academy in which employee as well as executives participates to get information about the new
policies of the Allied Bank. For example if the Bank policy regarding the financing schemes
change then the Managers of the Advances Section are invited in these seminars. They learn
about the new changes and then implement these changes in their branches.

In these academies a permanent staff is present for the training of employees. However, if
requires, subject specialists are invited to deliver lectures on certain subjects. For example the
Bank has a contract with Sajjad Associates which send its executives to deliver lectures on

27
project financing. In order to enhance the capabilities of the employees, ABL has chalked out a
comprehensive training and skill development program.

4.1 Orientation & Introduction

Allied Bank has a very well organized and well established HR department that practices all the
HR strategies which are beneficial for the organization. As other departments are well established
and operational for there matters, HR department is empowered to develop and plan what so ever
is required for the company.

Orientation and induction is required for employee familiarization with the organization and
Allied Bank is well aware of this fact. Affiliation with organization is only possible if the
employees are informed about each and everything. When the employee is hired he get proper
orientation and that orientation may exceed too few months until he get the feeling of affiliation
and get to know the organization well.

4.2 Training Policy

Training is a planned effort by a company to facilitate employees learning of job-related

competencies. These competencies include knowledge, skills or behaviors that are critical for the
successful job performance.

At Allied Bank, there is a continuous assessment of the technical and managerial skills. For the
further enhancement of these skills formal training programmes offered at all levels. The
employees are provided with opportunities to put these skills into practice, in preparation for the
move to a managerial role.

28
Training is viewed at Allied Bank as a way of creating intellectual capital. Employees are
expected to acquire new skills and knowledge, apply them on job and share this information with
other employees. The training is cross-functional for sharing of skills.

The employee are trained periodically either locally or abroad according to preplanned schedules.
The objective of such training is to upgrade the capabilities of employees.

If an employee attends an overseas training then he/she has to serve the company for a certain
period after the date of completion of training subject to the cost and duration of training itself. In
case an employee leaves the company during this period he/she will have to pay the amount
specified at that point in time.

Training Methods:
• On Job Training
• Special Training Sessions
• Team Building
• Problem Based
• Refresher Courses

Types of Training in Allied Bank:

On a general basis the training done in Allied Bank can be divided into two categories:

Soft Skill Training:

Helping the employees develop a stronger base of knowledge on topics that affect their personal
lives can make them more productive and less distracted in their jobs. Soft skill development

29
courses in areas like personal finance can help your team better manage the most important areas
in their personal lives. This includes the following things for e.g.

• Conflict management training

• People management training

• Communication skills

• Time management training

• Teamwork training etc

Technical Training:
It includes the computer base training in which employees are trained according to the new
technology in which banks is dealing.( peach tree accounting management, oracle, database etc)

This type of training has direct effect on the job of the employee. Specific skills are focused and
developed accordingly. The engineering trainings of Allied Bank are also included with this
along with

• Customer Services training

• Sales related training
• Marketing and technology training etc.

All these types of training are done to enhance the employee’s job skills at the level he is at.
Training programs leads to:

• Leadership
• Influencing
• Creative Problem Solving

30
 Chapter 5: Performance management & system
Reviewing performance and taking positive steps to develop employees further is a key function
of management and is a major component in ensuring the success of the company through
effective employee performance.

Success of ABL is directly related to the commitment and productivity of the people who work in
business. Performance management is a considered vital for the bank. Its objective is to improve
overall productivity and effectiveness by maximizing individual performance and potential.
Performance management is concerned with –
 improving individual and collective performance;
 communicating management's expectations to staff;
 improving communication between senior management and staff;
 assisting staff to enhance their career prospects through recognizing and rewarding
effective performance;
 identifying and resolving cases of underperformance; and
 Providing training for improving performance of employees

A review is about ensuring people know what levels of performance are expected of them and
then taking action to ensure they are trained and developed to perform effectively. The intent of
these appraisals is to review current job performance and responsibilities, set goals and discuss
further opportunities with reference to past performance at ABL

Objectives of Performance Appraisals

31
 • To measure the work performance

• To motivate and assist employees in improving their performance

• And achieving there professional goals

• To identify employees with high potentials for advancements

• To identify employees training and development needs

• To provide a solid path for career planning for each individual

It bases on goal achievement of individual & group. In ABL it depends on deposit, advances &
any given target by the bank. It varies according to situations in which employee is dealing with
his customers.

5.1 Performance Appraisal Cycle

It starts with calendar year & ends with calendar. Training & development is the basic purpose of
the cycle. As we know training & development are conducted according to the need of the
Human Resource.

5.2 Appraisal Criteria

Reviewing performance and taking positive steps to develop employees further is a key function
of management and is a major component in ensuring the success of the company through
effective employee performance.

A review is about ensuring people know what levels of performance are expected of them and
then taking action to ensure they are trained and developed to perform effectively.

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 Chapter 6: Rewards & remunerations

The policy of motivating bank employees through increase in salaries, enhancement in the
coverage and amount of group insurance, reimbursement of educational expenses, improvement
in medical facilities and recognition of their contribution etc.

Allied Bank has a separate department for compensation. That department deals in staffing and
compensation planning. First of all this department has all the information regarding who is being
employed and how it is performing. What so ever promises are made to the employees, they
know that. So it’s easy for them to design compensation plans because they know every
employee which is being hired.

Compensation and benefit plans are particularly based on performance. If performance is up to

the standards of Allied Bank and the employee has good conducts he is rewarded. After
performance evaluation, results are rechecked and matched with the standards. Based on that,
proper compensation plans are designed.

6.1 pay structure

The company will pay salaries of the employees as fallows

o All new employees have to open bank accounts in specified banks prescribed by the
company so that their salary will be credited at the end of each month.
o After opening account with the bank employees forward his account number to HR.
o Upon termination of services the employee will receive his salary within 15 days up to the
time of date of his last working day.

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 o Upon resignation the employee will be paid his dues during a maximum period of 15 days
from the date he left the job.

6.2 benefits

Promotions:
Promotions are reward management technique used at ABL to motivate employees. In Allied
Bank promotions are based on the merit and seniority (experience) basis. The one who performs
well consistently over time gets reward in the form of promotion.

Bonuses:
The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives.
In Allied Bank the reward system is based on the individual performance and individual
employee performance is judged for the reward. The manager of respective departments
recommends a candidate from his section for the reward purpose to HR.

Intrinsic and Extrinsic rewards given to employees at ABL include:

 Smart/Quality work
 Exceptional performance in a project
 Targets achievements

 Special assignments

 Medical care
 Life insurance
 Vacations
 Recreation
 Club Policy Travel
 Education assistance policy
 Mobile phone

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  Business mobile phone policy
 Life insurance
 Medical entitlement

Chapter 7: Industrial relations

Every organization wants to create good relations with its industry in which it is dealing similar
case with Allied Bank. It has good relations with their banking industry because every bank deals
other effectively and efficiently with banks on the behalf of customers.

Labor Union

It is the ABL policy to ensure that the required standards of performance and conduct are
maintained. The disciplinary procedure is intended only as a statement of Company policy and
management guidelines. It does not form part of the contract of employment or otherwise have
contractual effect. In labor elections Executive & Officers are not involved only clerical & non
clerical staff are involved. Allied Bank Worker Union is the labor union at ABL.

It is taken as guaranteed at ABL that Employee Relationship Management will improve

productivity by improving:
 Employee morale
 Employee loyalty
 Employee turnaround
 Employee communication
 Employee change readiness

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7.2 Health & Safety

The safety of employees is the organization’s responsibility. Accidents, precaution and efficient
work go hand in hand.

At ABL the interest in practicing safety prevention is encouraged by:

a) Setting good examples.

b) Acting upon safety records.
c) Reviewing safety programs.
d) Holding personal interviews or group conferences.
e) Starting activities that will stimulate and maintain employee’s interests.

No phase of operation of administration is of greater importance than accident prevention. It is

the policy of the bank to provide and maintain safe and healthy working conditions and to follow
operating practices that safeguard all employees and result in safe working conditions and
efficient operations. Proper First Aid Kit will be available at all ABL Offices including remote
locations.

There is no need for such measures at ABL as maximum jobs do not expose you to the health
hazards and are not such that require safety measures. However, there is a tendency of being safe
in every human.

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 Bibliography
o www.abl.com

o http://www.sbp.org.pk

o http://www.ablamc.com

o Annual Book of ABL

o News letter of ABL

Resource Person
Muhammad Jamil

Officer/PA to RH

Regional Office

51-c, old civil lines

Sahiwal.

Muhammad Aslam Khan

Manager

Chak No 89/6-r

Sahiwal.

Muhammad Hafeez Ch

Manager

Farid Town Phase 11

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Sahiwal.

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