Submitted To: .Miss.

Rubina Aslam
 CONTENTS Page No
Dedication
Acknowledgement
Executive Summary
INTRODUCTION OF THE ORGANIZATION
Introduction Of ABL
History
Privatization
Today ABL
Vision
Mission
Organizational Chart
HR EVOLVEMENT IN ABL
History of HRM Department
Mission Statement of HRM Department
Role of HRM Department
Human Resource Policy
Problem In Hierarchy
HR PLANNING
HR Planning in ABL
JOB ANALYSIS
Procedure of job analysis in ABL
RECRUITMENT
Recruitment Process in ABL
SELECTION
Selection Process of ABL
SOCIALIZING
Socialization Process in ABL

TRAINING AND DEVELOPING EMPLOYEES

Training in ABL
CONCLUSION
RECOMMENDATIONS AND SUGGESTIONS
APPENDIX
Introduction
Allied Bank is located in It was established in 1942 before independence,
Allied Bank Limited is one of the largest banks in Pakistan with 735
Branches connected to an online network. In August 2004 the Bank was
restructured and the ownership was transferred to Ibrahim Group. Allied
Bank is one of the largest banks in the country. With a history of ore than
sixty years of banking operations and having 750 real-time online branches,
Allied Bank is leading the industry with the largest network of ATMs
countrywide.

History
Established in December 1942 as the Australasia Bank at Lahore with a
paid-up share capital of PKR 0.12 million under the Chairmanship of
Khawaja Bashir Bux, and his business associates, including Abdul Rahman
Malik who was amongst the original Board of Directors, the bank had
attracted deposits, equivalent to PKR 0.431 million in its first eighteen
months of business. Total assets then amounted to PKR 0.572 million.
Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion,
deposit exceeded Rs. 143 billion and total assets equal Rs. 170 billion. The
Allied Bank's story is one of dedication, commitment to professionalism,
adaptation to changing environmental challenges resulting into all round
growth and stability, envied and aspired by many.

1942 - 1947: Pre Independence

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

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

The initial equity of the Bank amounted to Rs 0.12 million, which was
raised to Rs 0.5 million by the end of first full year of operation, and by the
end of 30th June 1947 capital increased to Rs. 0.673 million and deposits
raised to Rs 7.728 million.
1947 to 1974: Australasia Bank

Australasia Bank was the only fully functional Muslim Bank on Pakistan
territory on August the 14th, 1947.

It had been severely hit by the riots in East Punjab. The bank was identified
with the Pakistan Movement. At the time of independence all the branches
in India, (Amritsar, Batala, Jalandhar, Ludhaina, Delhi and Angra (Agra))
were closed down. New Branches were opened in Karachi, Rawalpindi,
Peshawar, Sialkot, Sargodha, Jhang, Gujranwala and Kasur. Later it network
spread to Multan & Quetta. The Bank financed trade in cloth and food grains
and thus played an important role in maintaining consumer supplies during
riot affected early months of 1948. Despite the difficult conditions prevailing
and the substantial set back in the Bank’s business in India, Australasia
Bank made a profit of Rs 50,000 during 1947-48.

By the end of 1970 it had 101 branches. Unfortunately it lost 51 branches in

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

1974 to 1991: Allied Bank

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

exceeded Rs 1080 million for the first time in bank history. 116 new
branches were opened during 1974 and the Bank started participation in the
spot procurement agriculture program of the Government. Those seventeen
years of the Bank saw a rapid growth. Branches increased from 353 in 1974
to 748 in 1991. Deposits rose from Rs 1.46 billion, and Advances and
investments from Rs 1.34 billion to Rs 22 billion during this period. It also
opened three branches in the UK.
1991 to 2004: Privatization

As a result of privatization in September 1991, Allied Bank entered in a new

phase of its history, as the world’s first bank to be owned and managed
by its employees. In 1993 the First Allied Bank Modaraba (FABM) was
floated.

After privatization, Allied Bank registered an unprecedented growth to

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

In August 2004 as a result of capital reconstruction, the Bank’s ownership

was transferred to a consortium comprising Ibrahim Leasing Limited and
Ibrahim Group.

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

2005 to Today

In May 2005 Ibrahim Leasing Limited was amalgamated by transfer to and

vested in with and into Allied Bank Limited. ILL shareholders were issued
ABL shares in lieu of the ILL shares held by them. Application for the

listing of ABL shares in all the Stock Exchange Companies of Pakistan was
made. ABL was formally listed and trading of the shares of the Bank
commenced w.e.f. the following dates.

Reason Of Privitization
Allied Bank Limited Second bank to be privatized in the public sector on 9th
September 1991, 26 % shares was sold to the Allied Management Group,
which represented the employees of ABL at a price of Rs. 70 per share. On
23rd August 1993, another 25 % shares were sold to AMG at price of Rs.
70 per share. This resulted in transfer of ownership from Government
of Pakistan to AMG In 1999, it transpired that one of ABL’s major
defaulters had purchased about 35-40 % of ABL shares from
employees.

• In July 1999, SBP imposed restriction on transfer of Shares from

employees to non-employees except on prior approval from SBP.

• On August 3, 2001, the SBP removed the Chairman And three

Directors on the Board of ABL as they were found to be working
against the interests of ABL and its depositors and appointed new
Board.

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

Mission
• To provide value-added services to our customers
• To provide high-tech innovative solutions to meet customers
requirements.
 • To create sustainable value through growth, efficiency and
diversity for all stakeholders.

• To provide a challenging work environment and reward

dedicated team members according to their abilities and
performance.

Functions
Services
Allied Bank offers the following services to its customers:

• Home Remittances
• Remittances
• Hajj Services
• Utility Bills
• Lockers
• Commodity Operation

Internet Banking
Online Banking facilities are available to customers maintaining accounts at
all online branches across the country. The following facilities are available:

• Cash Deposit for immediate credit to remote branch.

• Remote Cheque Encashment from any online branch.
• Instant Funds Transfer between any 2 online branches.
• Remote Balance Enquiry and Statement of Account.
 Board of Directors
• Muhammad Aftab Manzoor - Director/President & CEO
• Mohammad Naeem Mukhtar Chairman
• Sheikh Mukhtar Ahmed - Director
• Mohammad Waseem Mukhtar - Director
• Abdul Aziz Khan - Director
• Sheikh Jalees Ahmed - Director
• Farrakh Qayum - Director
• Nazrat Bashir - Director
• Tasneem M Noorani - Director
• Mubashir A Akhtar - Director
• Kamal Monnoo - Director
 Departments

Administration Department:
It is responsible for administrative services for all
meetings, personnel matters, budgets and accounts. It
studies and reviews general administrative policies and
industrial relations methods used in the industry, and
advise management of possible improvements.

The Department also keeps track of contemporary

administrative policies and/or policy changes occurring in
the industry which might affect the Organization, or be of
interest to it.

Human Resource Department:

The Human Resources department oversees the recruitment and
management of organization. In addition to set policies and
procedures, this office maintains good working relationships with
respective unions, managers and other employee groups. This
department also oversees the functions of Occupational Health &
Safety. The HR function consists of tracking innumerable data points
on each employee, from personal histories, data, skills, Capabilities
and experiences to payroll records. To reduce the manual workload
of these administrative activities,
Organizations began to electronically automate many of these
processes by introducing innovative HRIS technology.
HR function is still to a large degree administrative and common
To all organizations. To varying degrees, most organizations have
Formalized selection, evaluation, and payroll processes. Efficient
And effective management of “Human Capital Pool” has become
An increasingly imperative and complex activity to all HR
Professionals.
 Evolvement of HR department
HR Department evolves at Allied Bank in 1999, after when allied
became privatized. And they feel the need of proper HR department
because there was a need of proper HR department in Allied Bank for
many important solutions. That time the name of this hr Department
was manpower planning. That time work of that department was
planning for employee.

Policy Rationale
The purpose of the Performance Management Policy is to periodically
review associates’ work performance in order to promote the most
effective use of expertise, to determine the quality of service, to
recognize achievements, and to identify training and development
needs.

Customer service Department

The consumer portfolio, comprising the debit card, credit cards, auto
loans, personal loans and mortgages will be established phase by
phase. However, we are confident that our strengths, together with
our largest network of online branches, a superior technology
platform, a big customer base and the Consumer Personal Banking
Group (CPBG), will take the Bank’s profitability to new heights.

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.
 Marketing Department

Marketing department involves to sales the credit cards, and different

products of the bank with the help of sales representator of the bank,
which are the part of the marketing departments. Marketing Division,
setup is responsible for all marketing operations including planning,
distribution, sales, farm advisory services,

Accounts department

Accounts department of allied bank responsible for the operation of

maintaining daily transactions occurring in the bank and prepare
balance sheet and income statement and also deals with the
customers‘s accounts pass book and cash book procedures

Finance Department

Finance department of an allied bank performs the following

operations
Commercial Lending: Provides both fund as well as non-fund based
financial facilities, focusing
on short-term trade related self-liquidating credits.
Consumer banking: The Bank operates a growing credit card
business, under the “Master
Card” franchise, with global acceptance capability and a wide-ranging
merchant base. The
Rupee-based travelers’ cheques product is one of ABL’s most
attractive consumer products. The
Bank also intends to substantially increase its automated teller
machines on a shared basis.
Treasury Operations: The Bank’s treasury employs some of the
industries most respected
Professionals. The treasury systems operate under up-graded
technology
Organizationl Chart Of ABL

PRESIDENT

Senior Executive Vice

–President (SEVP)

Executive Vice President

(EVP)

Senior Vice President

(SVP)

Vice President (VP)

Additional /Assistant
Vice President
(AVP)

Grade -1

Grade -II

Grade -III

Clerk, Cashier etc

Non –Clerical staff

History of HR department

Introduction
Human resource management is the part of the organization that is concerned with
the “peoples” dimension. Every organization is comprised of peoples, according their
services, development their skills motivating them to high level of performance and
ensuring that they continue to maintain their commitment to the organization are essential
to achieving organizational objectives. Getting and keeping good and competent people is
critical to success of every organization.
Due to increasing demand of human resource management, in ABL a separate
department for human resource has been forms. The primary objective of this department
is the employment of people, their retention and development. More precisely the major
function of this department are staffing, training and development motivation and
maintenance. ABL has its own policy for recruitment and selection of employees which
is discussed next.

MISSION Statement of HR Department

Provide quality services to the City Manager, City Departments, employees and
applicants in the areas of employee relations, employee benefits, recruitment,
Testing, classification and compensation.

Role of HR department

Performance of an organization crucially depends on the efficiency of its personnel,

reflecting their skills and experience together with the human resource policy of the
organization. It is in this context
that the ABL provides an environment that motivates the employees to improve their
efficiency. Thus the management is constantly thinking of providing initiatives as a part
of human resource policies.
This includes improving the staff selection procedure, introduction of a system of
competitive reward,
Accountability: mechanism, effective learning and training and eliminating unnecessary
layers in the
Hierarchy: ABL is also trying to bring positive change in the attitude and values of its
employees. The
main human resource functions are being performed by the Administration Department.
During FY05, the BSC has focused on effective implementation of policies in the areas
of performance appraisal, promotions, motivation through compensation management,
rotation of jobs and training etc.
Function of Hr department

Human Resource
Director S.V.P

Employee Relations
Technician

Departmental functions

Employee Employee Classification and Employee Training

Relationship Benefits compensation and Development
Human resource policy
Every organization has its human resources policy. The basic fact lying under such
policies is to develop such working condition and creating employment opportunities,
which can foster a great sense of unity among employees and protect the common interest
of all parties.
A good human resources policy aims at employee development and their career
growth. It recognizes the achievement of its employees and gives them rewards.
According to ABL personal policy procedures manual it covers:

1. Man power planning

2. Role of personal division at the Head Office.

3. Job analysis for a job specification.

4. Recruitment and selection

Promotion, transfer, demotion and retirement

5. Resignation

6. Management by objectives, performance standards, assessments and appraisals.

7. Training plans and development.

8. Salary and wages

9. Personnel records and statistics.

 Industrial relations

 Compliance management Work conditions

 Transportation.

 Medical schemes.

 Tax liability.

 Temporary Recruitment.
  Internal communication & staff welfare.

 Delegation of authority & power of attorney

Problem in Hierarchy:
There is problem in the Hierarchy is that there is deep gap between the low level
employee and the top level Management. the lower level management has not approach
towards the top level management.
The structure is centralized.
The structure is very rigid.
There is lack of communication among the top and low level management.
There is lack of information flow between the low level management and the top level
management. Administration and management is combine

HR Planning IN ABL
Human resource department of the ABL designed decision-making process to ensure that
enough competent people with appropriate skills are available to perform jobs where and
when they will be needed.
The HR Department of the ABL meets the requirements of the various departments in
various ways.
If there is shortage of the employee in any branch they try to fulfill immediately the
vacancy as soon as possible
And assessing the available pool of people to determine the best fit.
For example
If any employee has an emergency or he needs the leave then the Hr department provides
the leave to him but also fulfill the need of that branch where from the person shortage
happened.
Or any there is happen the shortage of the employee in any department The HR department
appointed the other person from the other department. And after hiring the specialized
individual in that position they placed.
Procedure of the Firm about job analysis
Following steps should be taken by the ABL:

Step1: Obtain Documentary information such as procedure manuals and written

instruction.
Step 2: Ask about more general aspect such as the job purposes, the main activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.

Formulation of Job Specification and Job Description:

Job specification
ABL also has well developed criteria for each job in term of the job specification. In all
the area of the jobs the pre- requisite for the job are defined for example:
• Qualification required for a job
• Skill required for a job
• Experience required for a job
• Age Limit

ii job description
Human resource Division analyze each job and the it’s required
Out comes. Job analysis is done by analyzing the past experience and emerging trends.
ABL holds documents about terms, duties, responsibilities, and specifications about each
job.
ABL clearly defined everything that the applicant face no difficulties for application to
see the criteria defined he lies are not.
Recruiting process of the ABL
In Allied Bank Ltd. Employees are recruited by personnel division in accordance with the
bank policy. Allied Bank Ltd. uses two different methods to meet its personnel needs.

i. Direct Appointments
 ii. Promotion
Direct appointments are usually made in upper levels of hierarchy like in the case of
appointing directors & presidents. The employees are also recruited through discrete
selection procedure. The “promotion is an upward movement or advancement of an
employee in an organization to another job. It involves increase in salary grade status &
responsibilities” there is ban on all fresh appointment, so to meet its personnel
requirements vacant posts in Allied Bank Ltd. through recruitment on contract basis and
promotion of existing employees.

RECRUITMENT POLICY IN (ABL)

One of the most important fetor of recruiting aspect of new human resources is the
movement of work force inside and outside Pakistan. To counter this time to time
drainage of work force is a continuous recruitment. Program is followed which enables
ABL to maintain its working standards and work force.
Brief Analysis of Recruitment:

ABL Recruiting

Recruiting done through advertisement. Advertisement is one of the techniques of

recruiting.

Recruiting of employees through referrals.

Its better way to recruit the employee
through referrals because it
lowers the training cost.

Recruitment of executives through highly Management schools and colleges are the
reputed institution. easiest way of hiring the required the
potential candidates.
Selection process operates in the ABL.
Selection process of ABL is well developed. The selection process is described as.

Advertising for the applicants in

the leading news papers

The collection of the application

Short-listing the applicants

Testing the applicants

Short-listing the applicants in the

test

Interviewing the applicants

Socialization process in ABL:
ABL implements the process of socialization, when a new employee comes. They get
chance to be socialized with the environment of the company. For this purposes the
Selection of the candidate
employees visits all the departments of the bank and also takes a brief introduction of
each department, this gives them a good overview of organization. HRM department is
performing these duties with the coordination of the relevant department.