Mc080400906 Shafiq Report

8/6/2019 Mc080400906 Shafiq Report

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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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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


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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having account in the same branch.

d. Online Transfers


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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Date post:	07-Apr-2018
Category:	Documents
Upload:	taseer-yousaf
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Mc080400906 Shafiq Report

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