OB Allied Project Pakistan

DEDICATION

“The Holly Prophet Mohammad (PBUH) from where all systems and standards for quality can be downloaded directly, which are applicable everywhere; from daily life to the dynamically changing business environment”.

&

“My Dear parents and Teachers who taught me the true meaning of life”

PREFACE

We are living in a time of extraordinary change. The environmental and economic threat is frightening large on the entire sphere of Pakistan economy. Pakistani firms must design and make better products and services and should find better ways to market them. What was once regarded enough is no longer competitive. What were once limitless resources are now to be used more efficiently. Today an organization is on the leading edge.

I have tried my best to peep into the generic as well as real cumulative problems faced by the pioneer of banking industry in Pakistan. Several chapters have been included in the report but they seem to be very conventional in nature giving supplementary justification to the fact that ABL is the most conventional of the conventional bank.

     

                                   

ACKNOWLEGEMENT

I would like to acknowledge extremely valuable assistance provided by all the Officers and other staff members for their great cooperation. They provide the proper guidance and support time to time which helps me a lot to work in such competitive environment and the timely completion of assignments. The office working environment is very good.

                                                         

TABLE OF CONTENTS

Sr.No

Description

Page

01	Executive Summary	06
02	Introduction To Organization Vision, Mission	07
03	Core Values & Objectives	08
04	Organization Yesterday & Today	09
05	History of Allied Bank Pakistan	11
06	Branch Network & Headquarters	14
07	Organizational Structure	16
08	Management System of ABL	18
09	ABL Project	21
10	SWOT Analysis	25
11	Departments	29
12	HR department	34
13	Disciplinary Rules	49
14	Recommendation & Conclusion	40

EXECUTIVE SUMMARY

This document provided details of my achievements in term of practical implementation and understanding of working environment in banks.

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.

Allied Bank Limited was the first bank to be established in Pakistan. It started out in Lahore by the name Australasia Bank before independence in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then Allied Bank Limited in 2005.

In August 2004, because of capital reconstruction, the Bank‟s ownership was transferred to a consortium comprising Ibrahim Leasing Limited and Ibrahim Group. Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity, assets and deposit base. It offers universal banking services, while placing major emphasis on retail banking.

The Bank also has the largest network of over 700 online branches in Pakistan and offers various technology-based products and services to its diverse clientele.

INTRODUCTION TO ORGANIZATION

ABL is one of the largest banks in Pakistan, serving the Country for over 60 years in all spheres at banking and financial Services.

Allied Bank Limited operates by the following Vision, Mission & Values

VISION

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

MISSION

Ø To provide value added services to our customers.

Ø To provide high tech innovative solutions to meet customers‟ requirements.

Ø To create sustainable value through growth, efficiency and diversity for all stakeholders.

Ø To provide a challenging work environment and reward dedicated team members according to their abilities and performance.

Ø To play a proactive role in contributing towards the society.

CORE VALUES

Ø Integrity

Ø Excellence in Service

Ø High Performance

Ø Innovation and Growth

OBJECTIVES

Allied Bank has following objectives:

Ø Prime focus to earn profit by providing values to its customers

Ø To provide superior services to its customers

Ø To provide assistance in the development of the commerce and trade industry

Ø Focus on blending skills and experience towards creating an enabling

Ø environment

Ø Core focus is to inculcate a culture of collaboration intended to deliver world class customer service.
Organization Today & Yesterday

MEANING OF BANK

Some authors write that the word bank is derived from Italian word “bancus” OR

“banque” which means a bench. Because in the old days the Jews were used to make banking settlements by sitting on the benches & to deal the exchange of money in the Market place. When any one of them becomes insolvent means that he is unable to fulfill his requirements. Then his bench was destroyed by the customer & this practice given birth to the word “BANKRUPT”.

Some other Authors are of the opinion that the word bank is derived from a German word “back”, which means “Joint Stock Fund”. & when the major part of Italy was occupied by the German then this word „back‟ was Italianized in to the word Bank. However, no confident record is available to believe upon. Therefore, we are not in a position to give any bounded meanings to bank inspire of all these we can define bank as follow:

1. The imperial dictionary defined a bank as “An establishment for deposits & issue of money & also for granting loans discounting bills & facilitating the transaction from one place to another place”.

2. It is an institution, which deals with money.

3. It buys & sells the uses of money.

In other words, we can say “A bank is an institution for exchange of money, transferring funds by domestic & foreign bills of exchange.”

We can also say that it is a pipeline through which money moves into & on of circulation. Shortly & conclusively we can say that the “Bank is an institution that facilitates the matters in which the money is involved”.

Meaning of Banking

The Banking companies‟ Ordinance, 1962 defines Banking as “Banking means accepting for the purpose of lending or investment, of deposits of money from public, Repayable on demand or otherwise and withdrawal by checks, drafts, order, or otherwise.

BANKING SYSTEM TODAY

The banking business as we know it today is

Composed of three separate and distinctive

Principal functions these are:

Ø The acquiring of funds to invest and advances

Ø The investing of such funds and advances

(loans) in bonds

Ø The servicing of such funds, such as providing

of checking, saving facilities and the collection

of draft, notes and cheque

These functions while deferring in detail of operations follow the

same principles established hundreds of year ago by money lenders

and exchangers.
HISTORY OF ALLIED BANK PAKISTAN

Allied Bank was the first Muslim bank to have been established in Pakistan. Established in December 1942 as the Australasia Bank in Lahore with a paid-up share capital of Rs. 0.12 million under the Chairmanship of Khawaja Basher Bux, the Bank attracted deposits equivalent to Rs. 0.431 million in its first eighteen months of business. At the time, the Bank’s total assets amounted to Rs. 0.572 million. Today, Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposits exceed Rs. 143 billion and total assets equal Rs. 170 billion.

The Pre Independence History (1942 to 1947)

In the early 1940s, the Muslim community was beginning to realize the need for its active participation in the fields of trade and industry. Since the late 1880s, Hindus had established a commanding presence in the areas of industry, trade and commerce and were especially dominating in the Sub-continent area. Banking, in particular, was the exclusive forte of Hindus and it was popularly and wrongly believed that Muslims were temperamentally unsuited for this profession.

Australasia Bank (1947 to 1974)

Australasia Bank was the only fully operational Muslim bank in Pakistan on August 14th, 1947. However, it was 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, Ludhiana, Delhi and Angra (Agra)) were closedown.

New branches were opened in Karachi, Rawalpindi, Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later, the network spread to Multan and Quetta as well. The Bank financed trade in cloth and food grains thus, played an important role in maintaining consumer supplies during the early months of 1948 affected by riots. 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 branch. Unfortunately, it lost 51 branches in the separation of East Pakistan. But the Bank did well despite losing a lot of its assets and by the end of 1973 had 186 branches in West Pakistan.

Allied Bank (1974 to 1991)

In 1974, the Board of Directors of Australasia Bank was dissolved and was renamed Allied Bank. The first year was highly successful; profit exceeded Rs. 10 million, 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 the banking history. 116 new branches were opened during 1974 and the Bank started participating in the Government’s spot procurement agriculture program.

Those seventeen years saw a rapid growth for the Bank. Branches increased from 353 in 1974 to 748 in 1991. Deposits rose from Rs. 1.46 billion and Advances & Investments from Rs. 1.34 billion to Rs. 22 billion during this period. It also opened three branches in the U.K.

Allied Bank (1991 to 2004)

As a result of privatization in September 1991, Allied Bank entered a new phase, and became 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 became one of the premier financial institutions of Pakistan. Allied Bank’s capital and reserves were Rs. 1.525 billion; its assets amounted to Rs. 87.536 billion and deposits to Rs. 76.038 billion. Allied Bank enjoyed an enviable position in Pakistan’s financial sector 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 Abraham Leasing Limited and Abraham Group.

Today, the Bank stands on a solid foundation built over 63 years of hard work and dedication, giving it a strong equity, an asset and deposit base and the ability to offer customers universal banking services with more focus on retail banking. The Bank has the largest network of online branches in Pakistan and offers various technology-based products and services to its diverse clientele through its network of more than 700 branches

Allied Bank (2005 to Date)

In May 2005, Abraham Leasing Limited dissolved and the company was vested into Allied Bank Limited. ALL the shareholders were issued ABL shares instead of the all shares held by them. An application for the listing of ABL shares in all the Stock Exchange Companies of Pakistan was made; ABL was formally listed and the Bank’s share trading began on the following dates:

Ø Islamabad Stock Exchange 8th August 2005

Ø Lahore Stock Exchange 10th August 2005

Ø Karachi Stock Exchange 17th August 2005

Branch Network

There are Four Provincial Headquarters of Allied Bank Limited situated at

Lahore (Punjab),

Karachi (Sind),

Peshawar (NWFP & Azad Kashmir)

Quetta (Baluchistan).

Ø 800 domestic branches.

Ø Arrangements with large number of Correspondent Banks/Exchange Companies.

Ø Over 200 branches for Foreign Currency Accounts.

Ø Over 70 branches for trade finance.

Ø Large number of branches for Inland Remittances.

Ø  Large number of branches for Rupee Travelers Cheques.

Provincial Headquarters

PUNJAB:

196/Upper Mall, Lahore

SINDH:

Jubilee Insurance House, I.I. Chundrigar Road, Karachi

NWFP:

1st floor, State Life Building, The Mall,

AZAD KASHMIR:

          Peshawar Cantt.

BALUCHISTAN:

C.C. & I Building, Zarghoon Road, Quetta.

CORPORATE INFORMATION

Board of Directors

Mohammad Naeem Mukhtar

Chairman

Sheikh Mukhtar Ahmad

Mohammad Waseem Mukhtar

Abdul Aziz Khan

Sheikh Jalees Ahmed

Farrakh Qayyum

Government Nominee

Nazrat Bashir

Government Nominee

Tasneem M. Noorani

Mubashir A. Akhtar

Pervaiz Iqbal Butt

Mohammad Aftab Manzoor

 ORGANIZATIONAL STRUCTURE

Management System of ABL

Successful and profitable banking management depends on two principal factors.

a. The manner in which the functions of banking, that is the acquiring of deposits, the investing or converting such deposits into earning assets, and the servicing of such deposits, are performed.

b. The degree to which officers and employees contribute their talents to the progress and welfare of the bank in discharging duties and responsibilities.

Allied Bank Management

Banks are managed by board of director or similar group of men who are responsible to the owners, creditors and the government for the well being of their institutions. The government selects all or some of directors of ABL. Management of ABL are given as follows:

Ø Asim Tufail

(Group Chief, Consumer & Personal Banking)

Ø Fareed Vardag

(Chief Risk Officer)

Ø Iqbal Zaidi

(Group Chief, Compliance)

Ø Mohammad Abbas Sheikh

(Group Chief, Special Assets Management)

Ø Mohammad Aftab Manzoor

(Chief Executive Officer)

Ø Muhammad Jawaid Iqbal

(Group Chief, Corporate & Investment Banking)

Ø Muhammad Shahzad Sadiq

(Group Chief, Audit & CRR)

Ø Muhammad Yaseen

(Group Chief, Treasury)

Ø Mujahid Ali

(Group Chief, Information Technology)

Ø Shafique Ahmed Uqaili

(Group Chief, Human Resources)

Ø Khawaja Mohammad Almas

(Head, Core Banking Projects)

Ø Tahir Hassan Qureshi

(Chief Financial Officer)

Ø Tariq Mehmood

(Group Chief, Operations)

Ø Waheed ur Rehman

(Company Secretary)

Ø  Zia Ijaz

(Group Chief, Commercial & Retail Banking)

MANAGEMENT HIERARCHY

The management hierarchy represents the different positions and designations in the hierarchy of the ABL. However, this is not the reporting hierarchy but merely represents the positions and grades on the basis of seniority and grades.

Number of Employees

The organization have minimum of 12000 Employees.

IMPORTANT STATISTICS ABOUT ABL

Total customers	4,605,000
Employees	6,747
Total branches	735
Utility booths	34
Airport booths	1
Total clients in Lahore region	145,000

ABL PRODUCTS

    

Ø COMMERCIAL PRODUCTS

Ø CONSUMER PRODUCTS

Ø CORPORATE PRODUCTS

COMMERCIAL

The Commercial & Retail Banking Group (CRBG) offers a variety of asset and liability-based retail products to its customers. The Group’s main focus has been on introducing various financing and investment products for its valuable clientele, and contributing to the steady growth of the financial industry.

Deposit Account

Various deposit accounts are as follows:

i. PLS Account

ii. Current Account

iii. Allied Basic Banking Account

iv. Allied Business Account

v. Foreign Currency Deposits

vi. Monthly Profit Plus

vii. Rewarding Term Deposit

viii. Allied Advance Profit scheme

ix. Behtar Munafa Account

x. Behtar Munafa Term Deposit

xi. Allied e-Savers Accounts

 

Agriculture Finance

The Bank, under the Agricultural Financing Scheme, as decided by the State Bank Of Pakistan, extends short, medium and long term, farm and non-farm credits. The farm credits are extended for production (inputs) and development purposes. Non-farm credits are allowed for livestock (goats, sheep, and cattle), poultry and factories including social forestry and fisheries (inland and marine, excluding deep sea fishing). Details are as follows:

Farm Loans

a.    Production Loans

b.    Development Loans

c.     Non-Farm Loans

d.    Other Services

Internet Banking

i.                   Simple and Convenient

ii.                 Secure and Faster

iii.              24x7 Access

iv.              Online Banking

Corporate Leasing

a.     Allied ATM Network

b.    1-LINK ATM

c.     M-Net Network

CONSUMER

In line with the Bank’s aim to provide a host of products and services to its customers, substantial ground work has been done to establish a strong consumer banking business. Furthermore, to achieve this objective, professionals from across the industry have been recruited into areas of product development, sales, credit policy, research, consumer analytics, call centers and service quality departments.

The consumer portfolio, comprising the debit card, credit cards, auto loans, personal loans and mortgages will be established phase by phase.

Ø Visa Debit Card

Ø Allied Visa Credit Card

Visa Debit Card

i.                   Get Cash

ii.                 Shop Anywhere

iii.              Dine Out

iv.              Enjoy Traveling

v.                Fuel Up

vi.              Have Fun

vii.           Stay Alert

viii.         Activation Instructions

Allied Visa Credit Card

a. Allied Visa Gold Credit Card

b. Allied Visa Platinum Credit Card

i.                   Visa Platinum Golf

ii.                 Platinum Life

iii.              Visa Platinum Club

iv.              Visa Experiential Travel

CORPORATE

The Corporate Investment Banking Group (CIBG) holds the Bank’s loan portfolio and enjoys a leading position in corporate lending in the country. It offers a wide range of financial services to medium and large sized public and private sector entities.

These services include, providing and arranging tenured financing, corporate advisory, underwriting, cash management, trade products, corporate finance products and customer services on all bank related matters. Vast amount of funds to large industrial and corporate sectors of the economy and because it has played a big part in major investment and corporate banking transactions.

Corporate Banking

Investment Banking

Financial Institutions

OWN PRACTICAL WORK

DEMAND DRAFT:

PAY ORDER:

ACCOUNTS OPENING

Ø Applicant’s Name

Ø Date of Birth

Ø Nationality

Ø Identification No.

Ø Mother’s name

Ø Residential Address

Ø Telephone Number

Ø Currency of Account

Ø Nature of Business

Ø Residential Status

Ø Special instructions regarding the account

Ø Signature of the applicant

ISSUANCE OF CHEQUE BOOK

When a customer opens an account with the bank he is provided with chequebook for withdrawals of account. A chequebook contains twenty five and fifty leaves. The chequebook also carries a requisition slip for issuance of new chequebook. The slip is duly filled and signed by the customer

.

SWOT ANALYSIS

          The SWOT analysis is a comprehensive and critical overview of the operations, procedures, rules and regulations, services and other related activities, the analysis include the analysis of ABL Bank Khyber Bazaar branches in the light of the entire branch and Bank specific variables which directly or indirectly affect the operations of the branch. The tool selected for the analysis of organization is SWOT analysis.

SWOT analysis

          SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and Threats. This is a careful evaluation of an organization’s strengths to avail an opportunity by overcoming its weaknesses and phasing out all he threats to its survival in order to grow and survive.

Ø Strengths

Ø Weaknesses

Ø Opportunity

Ø Threats

Strengths

Ø This branch is provided with 3 fax machines, more than 7 telephone connections, which makes communication easier with different branches

Ø The branch is linked through a online network of 755 BRANCHES, thus enabling them to serve customer in better way.

Ø  This branch is provided with latest computer which increases the speed of computer work.

Ø The branch is situated in the commercial hub of Peshawar. This location provides a competitive edge to the Branch.

Ø The branch is situated in commercial area were business activities perform greater as compare to residential area. Thus it increases the number of customers.

Ø The Branch has the most experienced and the least experienced staff, which is a good combination of experienced heads and exuberance of youth.

Ø The branch is the main branch in the areas, which is another plus point for the Branch.

Ø It holds the Hindi Accounts, where the payments are made through checks. This process provides an opportunity to the Branch to have more of the Hundi customers as the Bank customers.

Weaknesses

Ø The Branch has a good staff combination on the basis of experience, but their training capabilities are not up to the requirements of the fast changing banking environment.

Ø The customer’s Long-term contacts are not maintained with customers.

Ø The technical training of the staff is negligible e.g. in case of the absence of computer there is no alternate trained personal who can record the daily transactions.

Ø The organization is very much mechanistic and provides no flexibility to encourage creativity.

Ø The lower staff is non cooperative as compared the lower staff of other branches.

Ø The control of manager is not effective.

Ø The discretionary powers of manger are very low to offer more incentives and value added services to its customers.

Ø There is a lack of commitment and professionalism on part of the employees. The staff is always in a hurry to leave the bank as soon as possible. They were also observed to starting their operations comparatively late.

Ø The organizational culture is not cooperative

Opportunities

Ø The biggest opportunity for the ABL, Khyber Bazaar branch Peshawar is the greater number of Hindi customers who get their payments through ABL, Bank Khyber Bazaar branch. These customers can be easily convinced to open their accounts with ABL.

Ø A considerable portion of the labor force of the area is serving overseas. Their families can be encouraged to use ABL as channel for remittances.

Ø The Internet facility in the area provides an opportunity to ABL to get Online.

Ø The Bank has the basic infrastructure, which can facilitate the online process.

Ø The location of the ABL, Khyber Bazaar branch itself provides an opportunity to ABL to get more and less cost deposits.

Ø The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so Khyber branch with its superior service quality and long working hours can capture those customers

Threats

Ø The biggest threat to the operational success of the branch is the better     competitor’s services. Many private sector banks are offering higher rates of return to customers than Allied Bank of Pakistan.

Ø Cannibalization of profits is yet another threat to the success of Bank Khyber Bazaar branch. The branches of Allied Bank are located very close to the bank Khyber Bazaar and G.T. Road branch. All these branches are taking away each other’s customers. 

Ø One of the biggest to the ABL, Khyber Bazaar branch is the increasing rate of dissatisfies customers. Most of these customers were observed to be dissatisfied with the delays in their servicing.

Ø The greatest threats to the performance of ABL, Khyber Bazaar branch are the decreasing morale of employees. They feel that they are not provided with bonuses. They are not given proper attention to have a say in the annual meetings. The proxy forms are signed on their behalf without letting them know.

Ø High-pressure interest groups are developing which poses a constant threat to Allied Bank.

Department

For proper functioning of branches and the overall bank has been divided in different departments. These departments handle different jobs so that division of work is there for improvement of functions and also it is easy to control the situation. The general division is as follows:

Ø Cash Department

Ø Deposit Department

Ø Clearing department

Ø Advances Department

Ø Remittance Department

Ø Human Resource Department

Ø Technology Department

Ø Account Opening and Closing Department

1.                Cash Department:

Cash department deals with the cash in the bank. The basic function of cash department is that it receives money from people and makes payment to people. When the bank receives money, it is deposited with the bank and cheque is presented to the customers with the help of which they can withdraw money at any time.

u    Features / Essentials of Cheque:

a.           It must be in writing.

b.           It must be an unconditional order.

c.           The drawer must sign it.

d.           The banker must be specified on the face of the cheque.

e.           It must be payable on demand.

f.             The cheque must contain sum of money to be paid.

g.           It must be payable to the order or bearer of the cheque.

There are three kinds of cheques:

·        Bearer Cheque

·        Order Cheque

·        Cross Cheque

·        Dishonored Cheque:

2       Clearing Department

It deals with transaction or cheque relating with other banks.

a)    Transfer:

b)   Cash:

3         Advances Department:

Advance department deals with all the advances, which are made to the customer. The basic aim of grant is to utilize money and get better returns i.e., profit. Following types of financing takes place at ABL.

i.          Demand Finances:

ii.                 Running Finance:

iii.              Cash Finance:

iv.              Fixed Asset Financing:

4       Foreign Exchange Department:

Foreign exchange is concerned with exchanging the currency of one country for that of another country. This exchange of currencies necessitates calculating and expressing the ratio of one currency to the other, in other words, determining a rate of exchange.

ABL has four sub-departments in the foreign exchange department.

 i.            Import and Export Department

ii.            Remittance Department

iii.                  Collection and Exchange Department

Foreign Currency Account Department

Import and Export Department:

Import and export department deals with import and export transaction. Here letter of credit is an important means of making payment. The letter of credit is not an instrument that is directly used for effecting payments but it is an arrangement by which facilities are offered for settlement of obligations, whether internal or international.

Remittances Department:

It deals with the transfer of money. There are four types of remittances.

Ø Outward Remittances

Ø Inward Remittance

Ø Commercial Remittances

Ø Private Remittances

1)                Collection and Exchange Department:

This department deals with the collection and exchange of all foreign cheques and bill etc.

2)                Foreign Currency Account Department:

Designated branches of ABL may without prior approval of State Bank of Pakistan, open with them foreign currency account of:

Pakistan National residing abroad and

Pakistan Nationals having dual nationality.

Bills Department:

Bills department is mainly concerned with collection of bills and lodging of bills. There are two main types of bills.

Clean Bill

Documentary Bill

CD Department:

The basic purpose of CD department includes following functions such as maintaining records of saving account holders, current account holder, their signatures, their scrutiny etc.

HUMAN RESOURCE DEPARTMENT

Management of people at work is very important in every organization, because organizational goals and objectives are achieved by co-ordination of people working in that organization.

Human resources office of ABL is an important office of the entire administrative setup. This office manages whole administrative matters relating to personnel right from recruitment to selection, pay, promotion, etc. to retirement matters. The ABL doesn’t have its human resources department in every branch, rather all its personnel activities, no matter how trivial they are controlled by human resources department at Head Office, Karachi.

RECRUITMENT:

Recruitment is the process searching for prospective employees and stimulating them to apply for jobs in the organization.

Human Resource Officer is responsible for the recruitment of personnel for almost all the departments of ABL. When any department require personnel it put, its demand before this office along with the job specification. Human Resource Office first tries to locate the desired person from within the various sections of the bank. If it fails to find a desired person than it hires from outside. Appointments to different grades are prescribed by board of directors from time to time selections are made on the basis of merit and merit is determined on the following basis:

    i.          Educational qualification

  ii.          Professional qualification

 iii.          Place of resident location of branch where staff is required.

iv.          Experience in banking.

  v.          Experience in the position and job description in the case of specialized position.

vi.          Past achievement in marketing.

vii.          Marks obtained in the written test.

viii.          Marks secured in final interview.

SELECTION AND HIRING PROCESS:

After the applications have been received call letters are issued to the candidates.

The various steps involved in the selection process are:

                     i.        Preliminary interview.

                    ii.        Intelligence test.

                   iii.        Interview.

                  iv.        Investigation of background of the candidates.

                   v.        Merit list.

                  vi.        Preliminary selection.

                 vii.        Approval by competent authority.

               viii.        Physical examination.

                  ix.        Placement.

TRAINING:

After the employee has been recruited, selected and inducted they are trained and developed to better fit the job in the organization. No one is perfect fit at the time of hiring and some training an education must take place. Banking industry is backbone of every economy; therefore the need of trained personnel in this typical service industry is much more important. ABL has one training institute in Lahore, suitable training method increase the quantum of learning within a given period of time.

The bank provides on the job training facilities to employees through job rotation to in different department as per requirement training more emphasis is in practical.

There is a four months off the fob training at the ABL Training Academy Lahore. Which is followed by four months on the job training?

PROMOTION:

Promotion cannot be claimed as a matter of right as on the basis seniority but on the basis of performance. Main criteria for promotion are the performance and skills of the individuals though seniority is also taken into consideration but it is of secondary importance. ABL has defined perfect career paths for its employees and the staff gets promotion accordingly in their grades by way of transferring from one position to the other. Normally employee is promoted to the next grade after 3 years but promotion is totally based on 3 years performance of the employee.

PERFORMANCE APPRAISAL:

As the name indicates, performance appraisal is evaluating the performance of the employees for given period of time. It is a systematic evaluation of the individual with respect to his performance of employees as ABL is appraised on the basis of Annual Confidential Reports. A Performa made by head office is send to immediate superior for filling. There are three different types of appraisal performs used for evaluating the performance of an employee in ABL:

1.           Executive

2.           Officers

3.           Clerical Staff

4.           Increments are decided on the basis of these appraisal reports according to the performance role in the development and encouragement of the staff.

5.           In ABL the performance of the employees are evaluating on the graphic or linear method.

TRANSFER:

ABL takes a lot of its employees so there are very few inter branch transfer. Further different kinds of problems may crop up in transferring an employee from one station to another station. Therefore transfers are rarely made and are only on the managerial levels according to the requirements of position. It may also be possible at the request of the employees.

RETIREMENT:

An employee shall retire from service on attaining the age of sixty years, provided that the board in a special cade may allow extension in its desecration. At the time of retirement the worker are given their compensation on the form of provident fund and gratuities.

DISCIPLINARY RULES:

It is a force that prompts individuals or group to observe rules regulation and procedure, which are deemed to be necessary for the effective function of the organization. Discipline; in ordinary conduct of affairs by the members maintain harmony and peace in organization willingly.

1.           Observance of rules.

2.           Maintenance of secrecy.

3.           Absence from duty.

4.           Misconduct

5.           Direct representation to director

6.           Disobedience with any lawful and reasonable order of the supervisor i.e. transfers.

7.           Fraud and forgeries.

8.           Damage or loss (bank property).

9.           Sleeping while on duty.

10.       Collection of money with in the office premises for any purpose not approved by bank.

11.       Striking.

12.       Unauthorized use of bank property.

RECOMMENDATIONS & CONCLUSION

It is human nature that one tried to find out the loopholes and drawback is the existing structure and to criticize as well. It is quite easy to recommend solutions along with criticism. Here the recommendations are as follows.

Recruitment Policy on Merit

Recruitment should be strictly based on merit. Favoritism and nepotism should be strictly controlled. Transparent recruitment procedure should be adopted. Employment should be strictly based on merit instead of reserved quota system.

Transfer

Transfer policy should be implemented well because in transfer many favorite people are not transferred, they are working one seat for several years and they are not transferred. Transfer is not properly made.

Specialized Training

As the worker finishes his/her training, he/she is introduced in a specific field. Since he/she does to have knowledge about the specific job assigned to him, thus he/she faces difficulties in performing the job.

Retirement

A flexible retirement policy should be introduced. So that experienced employee who is capable and is wishing to continue service is allowed to continue the service that enhances the moral of employee and bank will get high benefits from these experienced employees.

Motivation

Such motivation techniques should be adopted which fulfill the belongings, love and self-esteem needs of the employees. Only cash awards do not fulfill the motivation requirement. Giving employees different assignment should create environment of competition. This can be proved to be a great source of motivation.

Discipline Policy

The Branch manager should be delegated more power to tackle with the problem of discipline in bank. She should be empowered to take immediate and effective action in case of administrative problem without any fear and favor.

Management by Objectives (MBO)

MBO or management by objectives needs to be introduced in the bank immediately. It will help to improve the functioning of the bank and will lead to greater participation.

Decentralization

It is one of the problems in Allied Bank limited most of the function is centralized which is adversely affecting the performance of the bank. There is a need of decentralizing some of the functions, and decision making which can improve and unnecessary delay can easily be avoided.

Flexibility Principle

The authority of ABL should introduce flexibility principle in the bank in smooth functioning of the bank

Avoiding Mistakes by Planning

As with the other functions of management establishment of objectives and orderly planning are necessary of good organization.

Availability of Information

To avoid the problem of inviolability of information, bank should provide brochures etc and there should be a specific person who should available to clients to provide information to them.

CONCLUSION

This organization is well managed with organized structure and efficient employees. Due to its growth in online branch system, it has bright future in Financial Organizations.

BIBLIOGRAPHY

Ø www.google.com

Ø www.wikipedia.com

Ø www.abl.com

Ø Allied Bank Ltd Annual report (2009) Lahore.