Study Of Bank Alfalah Limited History And Operations Business Essay

Study Of depository financial institution Alfalah Limited History And Ope proportionalityns Business turn upIntroduction bound Alfalah Limited cant Alfalah Limited parted it functioning on June 21st, 1992 in the form of public limited company under the Companies Ordinance 1984. Its coin margeing trading operations started from November 1st, 1997. Since then the buzzword is engage in commercial desireing and other services relating to banking as defined in the cussing companies ordinance, 1962 of Pakistan. The Bank is currently operating through with(predicate) diverse branches in Peshawar and in Pakistan at large. They have in addition branches in Bahrain, Bangladesh Afghanistan, with the registered office at B.A. Building, I.I.Chundrigar, Karachi.Since the start, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has adopted strategies and policies to create a different position for the bank in the market place. It became economic ally stronger with the banking of the Abu Dhabi Group and its driven by the strategic goals set proscribed by its board of management. The Bank has invested in revolutionary technology to have a vast range of products and services.This helps the commitment of Bank Alfalah to a culture of more knowledgeability and seeks out synergies with clients and service providers to ensure undisturbed services to their guests. Bank Alfalah focuses on the requirements of their customers and always try to match them with quality products and service solutions. During the past quintuplet years, Bank Alfalah has raisen in the market as mavin of the foremost financial institution in the region endeavoring to meet the regards of tomorrow today.The Name of the pass Executive of Bank Alfalah is Mr. Sirajuddin Aziz and the Co-Chairman Central Management Committee is Mr. Parvez A. Shahid(Reference http//www.bankalfalah.com/ rough/historical_ overview.asp)Bank Alfalah visionTo be the premier organ ization operating locally internationality that provides the concluded range of financial services to all segments under one roof.Mission Statement of Bank AlfalahTo develop deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.(Reference http//www.bankalfalah.com/about/historical_overview.asp)Faisal Bank LimitedFaysal Bank Limited started its operations in Pakistan on October 3, 1994, in the shape of public limited company under the Companies Ordinance, 1984. The Bank has listed its sh atomic number 18s on Karachi, Lahore and Islamabad Stock Exchanges. Since then the Bank is engaged in Commercial, Consumer and Corporate Banking activities. The Bank has a network of 136 branches including 10 Islamic Banking branches and 2 sub-branches. The registered head office of the Bank is situated at Fay sal House, ST-02, Shahrah-e-Faisal, KarachiThe Pakistan Credit single out Limited (PACRA) and JCR-VIS Credit Rating Company Limited have fixed the Banks long term rating as AA and short term rating as A1+.Faysal Banks asset in 30th June, 2010 was over Rs. 175 billion about 3,000 employees are working in the banks with a network of over 135 branches in 38 cities of Pakistan. Currently it is the 12th largest bank in Pakistan by assets. The majority share holding of Faysal Bank is held by Ithmaar Bank B.S.C.(Reference http//www.faysalbank.com/aboutus.html)Faysal Bank Limited flockExcellence in all that we doFaysal Bank Mission StatementAchieve lead in providing financial services in chosen markets through innovation.Faysal Bank VALUESFaysal Bank daily code of conduct is exemplified by eight core values Four threshold values values at the heart of our brand and four differentiator values values that set our brand apart.The pre situationnt and CEO of Faysal bank is Naved A. Khan w hile the chairman of Faysal bank is Syed Naseem Ahmad(Reference http//www.faysalbank.com/visionmissionandvalues.html)Objective of the studyWe went to Bank Alfalah and Faysal Bank branches located in Peshawar. We interviewed the HR incumbents of both banks and some other employees for our HRM assignment and we asked them questions regarding the way they plan human being imaginativeness and their Processes and the way they Recruit new employees for the Bank. Now we are going to apply the knowledge relating to Human option cooking and Selection and Recruitment Method watch from these two Banks in our HRM assignment.Analyze the need for human imaginativeness cooking, the information necessary and the stages involved in this butt on (P4)Human election PlanningHuman imaginativeness proviso refers to as the process of deciding what positions the organization will have to fill and how they are going to fill them (Reference Gary Dessler, page.no.152)Human resource planning is a process conducted by a trustworthy for the rising in enounce to decide how a great deal employees are required by the firm to conjure up to cover the post, from warehouse keeper to the CEO. Human resource planning is the most important part of the boilers suit Human Resource strategy. For example a firm wants to enter into a new type of business or market it will have to plan that how much of employees it needs for carrying out those new operations if it wants to make success.Process of Human resource PlanningPlanning relating to employment is being done on the land of some basic assumptions. Forecasting techniques want HRP enables a company to generate these assumptions. If a company wants to plan for their employment needs, they basically need to consider three thingsPersonnel needs ( adopt)Supply from inner (Current employees)Supply from out side.After doing the analytic thinking of demand and supply then the stage of removing the gape between supply and demand comesF orecasting of soulfulnessnel needs (Demand)Organizations keep the some factors in heed while forecasting demand. Factors like the verifiables of the organization, employees utilization (how much of wear out will an organization require for their production or services objectives), the cost of labor, and environmental factor like technology and social norms are important for demand forecasting. on that point are simple techniques like ratio analysis and time series analysis through which forecasting of demand hind end be done.Forecasting of SupplyOne important question in this regard is should an organization plan to fill the forecasted positions with employees already working in the organization or by hiring people from outside the organization. There are excessively some important factors, which a firm must consider while conducting the process of forecasting supply. If a firm is planning to fill the position from inwardly so it must consider factors like employees skills, performance standard, potential trainability, educational base etc.On the other hand, if a firm is planning to cure people from outside so it should consider factor like skill availability, education and training level of the potential people, competitors activities and paying rate in the markets. Computerized information systems that contain a database of all the employees can be apply for forecasting supply from outside.Removing Gap between demand suppliesAfter doing the demand and supply analysis three situations can arise. Firstly, demand whitethorn become equal to supply so no actions are needed in this situation. Secondly, there may be surplus of workers so in such a situation steps like early retirements, limited hiring and reducing the tot ups of employees are appropriate. Thirdly, a famine of employees may arise so in such a situation the process of enlisting and infusion should be fastened.(Reference Gary Dessler,)Apply the concepts of human resource planning and stag es involved in this process on the organization under study (M3)?The concept of Human Resource Planning along with the stages involved in its process has been discussed in detail in P4 of this assignment here we will discuss the Human Resource Process in Faysal bank and its advantages for the organization.According to HR officer of Faysal Bank, Human Resource Planning is very important for their Human Resource division. By conducting the analysis they come to know how many employees they have currently and how much they require in the future in frame to gain their Human Resource objectives. They analyze Human Resource with the help of time series which signify they give targets to their employees and if they are unable to get those targets in stipulation time with the getable staff (Demand) they then analyze the performance of apiece employee by apply their human resource information system (HRIS) that contains the data of the all the employees they foresee the potential trai nability, productivity improvement of their current employees. Beside this they hire more employees in order to expand and to get their Human Resource targets.For example if they want to recruit new employees first basely, they boldness at their current employees, someone with experience, skill, competitive edge over other if there are such employees then they assign them double duties with 50% increase in pay. If there are not such employees available then they find new employees through the author of their existing employees or friend and family members (Supply of employees from Inside). If they are opening new branch for that purpose they also first look in their current employees to bring employees for them.Faysal Bank Human Resource department do not publish for the required general posts, they only advertise (Supply from outside) for the post of MTO (Managing Training Officer). Student from high class Universities apply on literary argument for this post once a year and no rmally they accept the qualified student of LUMS, IBA, NUST Universities respectively, for this post.Objectives of Faysal Bank behind conducting Human resource planningObjectives of Faysal Bank behind conducting human resource planning are as assumeTo fill the desire to look into the futureOrganizations like Faysal Bank are development big and the method of doing business are becoming difficult day by day as a result line of works at Faysal Bank some quantify requires sophisticated experience and skills that cannot easily be found and bought. Secondly it takes time to train and develop employees. cod to these factors Faysal Bank may find it self in a problem if they dont plan their employees straitlacedly so for Faysal Bank the desire to look into the future is growing due to factors mention above thats why it is the main objective behind conducting Human Resource Planning..To exercise control over as many variables as possible which influence business?Businesses are cant foreca st their future. Most of the analyst refers Human Resource Planning as an glide slope to risk management. Faysal Bank also uses Human Resource Planning so that it can practice control over changeable or variable factors like labor turnover, future labor market etc.To cope with employment protection legislationIt is one of the Faysal Bank main objectives behind conducting Human Resource Planning. Legislation (laws) relating to business security and general expectations from Faysal Bank as far as social responsibility is concern makes it difficult for it to simply remove employees. The cost of this for Faysal Bank can be measure in financial terms (cost of employee development etc) as well as loosing its reputation as a secure employer that at times may also harm its business. So Human Resource Planning can help Faysal Bank in dealing with problems like these.To comply with technical changesAdvancement in technology is changing the nature of work as new technologies are emerging in Service Sector. Faysal Bank conducts Human Resource Planning so that technologically competent employees can be hired. For example if it pre-plan to hire fresh IT experts who are able to know that how to use competitors for online payment and value along with some accounting skills so it means that Faysal Bank would be having a competitive edge over its competitors.To cope with de-jobbed workersIn Pakistan the pace of jobs is changing the trend of project base work is increasing day by day. So it is one of its core objectives behind conducting Human Resource Planning that proper planning can be done about project base workers.To complete the expansion plans in timeThe demands for Banks are increasing day by day. Therefore Faysal Bank has some serious plans to expand its operations. This means that it would need new people for which it conducts human resource planning so that a forecasted demand of human resource can be generated. This will help the organization in hiring the right person for the right job and with in time. Ultimately Faysal Bank will be able to complete its expansion plans in time.Recommend, how the organization can improve their human resource planning to achieve Human Resource goals effectively (D3).The changes and pressures brought in by economic, technological and social factors have forced organizations of all kinds to study the costs and human aspects of labor much more in earnest and carefully than ever to begin with. Therefore Faysal bank needs to further improve their Human Resource Planning in order to achieve their HR goals effectively.For up(a) their Human Resource Planning Faysal Bank need to implement the suggested steps belowThey need to accept employees from the most honest and well kn throw reference (Supply of labor from inside). Not from any body because some can be bias in bringing their relative, friends with no educational background and skills in order to improve their Human Resource Planning.They must select the wo rker (employees) with the required ability and information because it will give spirited edge over competitors since a good quality worker will carry advance service deliverance and hence productive personnel can analyze Human resource well.They need to educate their give in staff and try to make use of their present staff more by raising their salaries, in this way the present staff can be made knowledgeable and it will also help the Analyzers of HR to measure the performance of their current staff and the required number of staff and skilled they require to hire in order to support the old and hence achieve their HR goals.They need to keep their strategic planning (corporate objectives) in mind while conducting Human resource planning process this means that the HRP must satisfy the whole objective of the organization.They should actively involve their managers, executives, and line employees during analyzing human resource because they have more inside to the organization.Compar e the structured process for recruitment in two organizations and evaluate the methods and media that can be used (P5)Systematic approach to RecruitmentRecruitment is the part of the human process concerned with finding the applicants it is a positive action by management, going into the labor market, communicating opportunities and information, and encouraging applications from suitable candidates. Recruitment And Selection from harshalsk Effective recruitment is increasingly important today. Recruitment is a very complex concept it is not a simple process of placing ads or calling employment agencies. The crucial effort in this regard is that recruiting should make sense in terms of your overall corporate strategic plan. Successful results of recruitment depends upon other HR polices so it is very important that recruitment constitution should be coherent with your HR policy and also with the overall strategic plans.Recruitment sources (internal and external)Internal sources Ex isting employees, rehiring the old employees and succession plan The ongoing process of systematically identifying assessing and developing organizational leadership to enhance performance (Gary Dessler, p.no163) are the internal sources for recruiting employees.External sources Advertisement, employment agencies, off shoring/outsourcing, college recruiting and employee referrals is the external sources of candidates.Systematic approach to recruitmentA systematic approach to recruitment will involve the following stepsA detailed document of human resource planning, which contains anticipated detail of required human resource such as how, much of human resource organization needs to meet it objectives.Job analysis which includesJob description a process conducted so that detail information of competent Tasks, duties and standard can be generated.Job specification a detail statement of the professional qualification and skills required for a job.Job analysis is being conducted so that there is detail information with the organization that helps in hiring the right person for the right Job.An identification of the free posts, by analyzing the human resource plan and job analysis for different branch or department, which has free vacancy, and subsequent, approval or authorization. Seeking approval from that specific department ensures effective, low cost and timely recruitment.Evaluation of the sources of the staff that should be predicted by using forecasting techniques. Internal and external sources should be analyzed in this regard. formulation and publication of information (giving the jobs description and specification in the media along with other condition).One the applications from the potential candidates are received they can further processed before selecting the candidates.Recruitment approach by Bank AlfalahThe overall aim of recruitment process in an organization is to obtain the quantity and quality of candidates required to contact the objectives of the organization.The recruitment policy of bank Alfalah is centralized and lower employees have no access to it but it exists in a proper form. The policy manual of Alfalah is also not properly communicated to the lower employees and no one in the lower employees knows that what the overall policies of bank are. When we asked about the policies from the lower employees some of the employees were not clear about the HR policies as they had neither been not communicated, nor seen the policy manual. We asked the HR coordinator about the policy manual, she refused to give it to us saying that its highly confidential. Yet verbally she gave us some idea that what are the steps in recruitment. These steps are as follows.PolicyThe recruitment policy of bank Alfalah has the following conditionsIf some one is applying from Khyber Pakhtun Khwa he must be domiciled in Khyber Pakhtun Khwa.The required ages for the fresh recruits at start level are between 18-26The educational qualifications o f the employees.Officers (Executive Category) Master Degree /MBA/MCOM(Any recognise University by Federal Govt.)Assistant Officers/below Category B.A./B.Sc(Any recognized Institute by Federal Govt.)Peon and supporting staff / matriculation.Sources of Recruitment (labour pool)Whenever a indolent position is available, the head of department make reviews of the existing personnel and carry out a search within the organization for suitable persons before attempt the outside sources. But if a person with the required qualifications for a given job is not available, fresh recruitment is made.Ways of RecruitmentThe vacant posts are advertised through the local and national newspapers and applications are invited with the job specification and description showing the job requirements and eligibility. If the staff member knows any eligible person he or she is asked to call him along with his CV. If he meets the job criteria than the bank does not advertise for five or six seating but if the seats are more and time is less than they do advertise.Managers viewThe HR coordinator of bank Alfalah told us about the recruitment policy of bank Alfalah correspond to her they follow the following approach to recruitmentDetailed human resource planning defining what resources the organization needs to meet its objectives.The HR Manager described the duties, responsibilities, objectives, tasks and standards of the job.The HR Manager specified that what type of employees they are looking to perform the job.We provide equal opportunities to all the employees meeting with our criteria. No gender or racial variety is involved.We train our employees after recruitment according to their job and assign them a job or duty.At start we hire our employees on contract basis of one year but if he/she performs well then he/she can be made permanent.Employees viewAs we have interviewed some of the employees according to their point of view recruitment policies are very much transparent an d fair. As those employees have spent more than three years in bank Alfalah and were satisfied from their manager and from the bank environment. According to them they have submitted their CVs in bank AlFalah and after some time they were called for a written try and than after straits the assay they were called for interview. Then they were selected and sent for four months training to Lahore where they have their own training academy for fresh employees to train them for such specific job for which they were recruited. private analysisBank AlFalah is considering well in banking sectors because of their transparent policy which includes recruitment, selection etc. We personally fell well about their policy because the employees which are part of the organization are personally satisfied from their recruitment process. They clearly show the qualities of the personnel, which they required. Because of their good behaviors to the applicants they create a good corporate image on the mind of the applicant. The peoples who are still part of the organization are in favor of their recruitment policy, which helps in creating a good image of the organization of the peoples out side the organization.Recruitment approach by Faysal BankWhenever there is a resulting demand of recruitment F.B (Faysal bank) there are a few patterns which F.B follows in order to achieve a person for that job, for that reason Faysal bank hires different recruiting agencies to conduct the operation of recruiting of the desired vacancy. Similarly when different internees to drop in their C.V (curriculum vitae) so that when ever required they can fetch them for the desired vacancy.Before the recruitment of an employee different aspects are planed to accomplish the finest out of the new recruit so that it can give the silk hat it can to the bank.The objectives which are kept in front before the recruitment are as underThe individuals potential of achieving the objectives which he/she is hired for.The recruit may not get exceeded before the finalization of the desired task.The recruited should have the ability of holding new things when he/she is being skilled.He/she could adopt himself/herself to the changes or innovation in the bank industry.And above all he/she could be reliable so that he/she could keep the business secret of this financial organization.The individuals who are favorite(a) before the recruitment of the new candidates for the bank are as under.Initially the preference is given to the existence employees if there is any employee who deserves that particular job, or that if a particular person is capable of filling that vacancy, he/she is preferred as to before hiring a new employee.If there is some individual in the Faysal Bank branch who has got the nerve that if he could be trained he can get more skilled and suits that job unoccupied at that time he could be indulged in that particular vacancy.The desired vacancy could be referred to the other brach es of the bank, so that if there is any capable employee who can be assigned to that job then he/she will be undertaken.Faysal Bank Relationship Manager ViewMr. Muhammad Yaver Khan Khattak the branch relationship manager Faysal bank Omer Plaza Jehangirabad University highroad view over the recruitment policy is that this is a very flexible and feasible approach for the employees already working in the bank that if they are given the motivation that if there gets a vacancy in the bank they have got a chance for the promotion for the employee, this end results in the betterment of the organization and the employees start for put in more efforts for the achievement of that desire post.likewise he thinks that if there isnt any one commendable enough for that job, we hire different agencies for the recruitment of the staff of the bank which helps in the time saving of the organization but for the desired quality of the new recruitment the final interview is being conducted by the HR coo rdinator in the Islamabad brunch. And then the C.V (curriculum vitae) of the candidate is send to the head office in Karachi.Employees viewWhen we interview Mr.Imran a newly recruit in F.B Omer Plaza Jehangirabad Peshawar, he said that the recruitment policy of Faysal bank is flexible and feasible as that he was doing the internship from the bank and when there was a vacancy they called him if he was willing to do that desired job.Our Personal analysisIn our view Faysal bank has got a very professional approach to the recruitment policy for their bank because their policy of giving the opportunity to the old employees to be upgraded to the new post. Similarly the phenomenon of hiring a recruiting agency is very feasible for the bank and as well as for the new recruit.Evaluate the interview as a selection technique and discuss a range of alternative selection methods available (P6) interrogateInterview is a kind of face to face negotiation between two people for a particular purpose. An interview is a purposeful exchange of ideas, the answer of question and communication between two or more persons. Both Faysal Bank and Bank Alfalah consider interview to be useful for selecting employees. A selection interview is a selection procedure designed to predict future job performance on the basis applicants oral response to oral enquiries.A hiring and selection light beam is an aid that helps interviewers focus on key success criteria, compare findings with others more effectively, and develop more rigors in evaluating and scoring candidates. To be effective, the tool must be supported by excellent skills in behaviorally-anchored interviewing. In addition, interviews must be sensitive to various guidelines about the kind of data seek in interviews. The guiding principle is that specific information related to protected classes of individuals or to personal activities or principles that are nor related to specific job activities should not be directly questioned. I n addition, using these tools and processes provides an excellent opportunity to sell the companys approach to performance excellence, including tools that candidates can use throughout their employment to maximize their own performance.General Process of a selection is as followsSelection involves number of steps through which the applicants are screened for choosing the most appropriate persons for available posts. The main objective of selection is to choose the right person for the vacant job.The general process of selection is as followsChecking each applicant against the criteria given in the job advertisement. abruptly listing of ApplicantsNotifying Short listed ApplicantsConducting InterviewsVerifying CredentialsRanking ApplicantsReference CheckingWriting Selection ReportFollow-up procedure for candidates who successfully completed the selection procedureNegotiation of terms and conditions of the job.Formulate up a contract or written conditions of jobs.Plan initial orientat ion for the new employees.Review the applicants list which are not interviewed and putting the potential candidates on cling to for future.Telling the unsuccessful applicants for the desired post.Alternative selection methods available to the BanksPsychological TestPsychological examination is the important technique in selecting personnel, and this is widespread at all levels and periods of life. And it is a measuring device, a yardstick applied in consistent and systematic contrive to measure a sample of behavior?Purpose of Psychological testSelection The emphasis is on finding a person with the right qualifications for a particular job.Placement The importance is depended on employees the problem is to find the right kind of job for a suitable employee.Characteristics of Psychological testsStandardization It refers to the combination or customary of the conditions and procedures for administer a test.Norms It refers specifically to the average or performance on the testReliabil ity It refers to the regularity of response on a test. There are several methods for determining reliabilityTest Retest MethodEquivalent-forms MethodSplit-halves MethodValidity It is one of the most important requirements of any psychological test is that it measures accurately what it is intended to measure.A number of steps are required to establish a testing programConducting a job and workers analysis purpose or developing a suitable testsConducting an item analysis of each question on a testDetermining the level of difficulty of each questionEstablishing the reliability and validity of the testSetting the cut-off scoresTypes of Psychological testAdministration TestIndividual Group Test Individual test is straight to one person at a moment in time, are more precious and hence, are used to slighter degree in industry than a grouping analysis.Speed Power TestSpeed Test It has a rigid time limit at which spot applicants taking the judicial decision ought to terminate.Power Test It has no time limit, examines are permitted as much time as they feel they need to finish the test.Paper and Pencil and executing TestPaper Pencil Test Is a kind of assumption test in which questions are in written structure and the answers are record on an answer page.Performance Test It possibly will take longer to administer than paper pencil test and also may need a candidate testing operation.Objective Subjective scoreObjectivity It is the greater part of the test used for automated selection aims are objective. subjectivity In investigation score, as in interview, allows employee prejudices and attribute to enter into the tough circumstances. This can lead to distortion of