HR Report On Bank al-Falah By: Naheed Bhanbhro & Asma Hussain Mahar BBA V (B) Submitted to: Sir

Mohsin Ameer Mukhtar Date: 30/04/2012

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A brief History of Bank Al-Falah: Bank Al-Falah was in corporate in June 21 st,1997 as a Public limited company. Its banking operations commenced from November 1st , 1997. The bank is engaged in commercial banking and related services. The bank is currently operating in 21 cities with the registered office at B.A Building, 1.1 Chundrigurh Karachi. Vision: To be the premier organization operating locally and internationally that provided the complete range of financial services to all segments under one roof. Mission Statement: To develop and deliver the most innovative products, manage customer experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of bank. Synopsis: This report describes the HR functions performed at Bank al-Falah. And the contributions or the impact of HR practices in Bank Al-Falahs overall growth. First of all, we have analyzed the objectives and process of HR Planning and other functions prevailing at Bank Al-Falah limited, then we have gone through the systematic approach of recruitment and selection process and how it helps Bank Al-Falah to find the best and competent talent from industry, and how well Bank Al-Falah uses those HR practices to gain competitive advantage from market. Then, we have analyzed the application of performance appraisal and performance management system at Bank Al-Falah Limited, and the role it plays in job evaluation there, because a fair and just performance appraisal system can help a company to take fair and un-biased decisions regarding promotions and demotions of employees. Thus report focuses on the HR strategies which help Bank Al-Falah to arrange a competitive workforce at right time, for right position to perform the required tasks in an effective manner. It just not end here it also needs consideration for employees to make them satisfied by providing them required skills through training and development and also equalizing their wages according to industry average to keep their morale up and high, because the employees tend to be the valuable assets of the organization. Role Of HR at Bank Al-Falah Limited: Main role of HR in any organization is to hire right people for right job it is that finding the best talent from the industory, and not only hiring the best talent but also retaining them by keeping them satisfied. Though, HR department is the growing need of every type of industory it is like
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the lader to all the functions of a company, so HR dept. will ultimately be contributing in over all goals of organization. This report contains a brief review about the objectives and process of HR functions and planning in Bank Al-Falah descibing its recruitment, selection, training, and other HR related activities. Bank Al-Falah basically is a financial insititute which provides a complete range of financial services to all segment of the market. HR Planning: Organizations detemine their future human resource needs by keeping them engage in HR planning through which they forecast and plan for the acquisition, retention and improvement of the HR. HR planning helps companies to select right number of workforce at right time for right job. Objectives and functions of HR planning in Bank Al-Falah are same like the other organizations i-e to forecast and plan the future workforce supply and demand. Bank Al-Falah makes a list of requirements to the specified job keeping in view its needs and company objectives. Further, Bank Al-falah also makes plans for its emloyees motivation by giving them different sort of targets and incentives when they accomplish thiose targets by improving their performance. Employees demand is forecasted when they have to open a new branch because of change in customers demand or when they have to improve or increase their services and have to start with a new and advanced technology which can be handeled only by new and fresh eployees. While, emloyees supply is forecasted when there are transfers, internal movements in the bank like promotions or the job rotation and over-times. Job Analysis:

It is an important task without which recuitment, selection and training cannt be processed, so HR functions remain of no use when there any proper job analysis isnt made. Need for job analysis comes when there future employee demand is estimated and information is required for different level of activities to be performed for that particular post. Job analysis for the top management in Bank Al-Falah is done directly by the head office situated at Karachi and the head office use internal as well as external source of recruitment to fill the vacant jobs. There are two methods of collecting job analysis information; interviews and observations. Recruitment: Bank Al-Falah recruits employees for three job categories: Top Management

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Trainee Officers Contarctual Employees Top manageril posts are fullfilled either by external or enternal resources whichever provides best qualifications and experience; fresh candidates are valued more for trainee officer post and usually, are hired externally. Enternal recruitment (promotions) is also made keeping in view the performance of the employees. Sometime contractual employment is considered good option till the permanent availability of employees is made. Bank Al-falah uses following resources for inviting suitable candidates for enternal and external recruitment. Newspapers- it advertise vacancies in popular English and Urdu newspaper according to the need and situation of job. Website- it also gets services from online emloyment agencies like ROZEE.PK where it advertises for the vacant posts and it has also its own websites where thet mention about new career apportunities. Direct Applicants- fresh graduates keep on sending their CVs to HR departments from time to time. HR dept. considers their applications when there are effective persons and job is vacant. Selection procedure: After the recruitment process, efforts are made to select the most capable and reliable candidates under the HR managers.their criteria for selecting candidate is that 1. Candidate must be a citizen of Pakistan 2. They must be qualified in the relavent field having graduate or post graduate degree. 3. Should have attained the age of 18 but not be exceeding the age of 35 years. After advertisement in media different people apply for the job in which irrelevent applications are also received, and those are screened out and only relevent applications are called for test. The test is examined by the Insititute of Bankers Pakistan (IBP). The test format is of GMAT in which they try to judge persons job related behavior, and skills of doing individual and group tasks. By this they judge the pwersonality traits and qualities and finally the interview is conducted at the regional office of president of Bank Al-Falah. Then deserving candidtes are selected and sent for training to the head quarter, which is based at Karachi where candidates get training in various fields, after completion of the training, new employees are sent to different branches according to the need and situation of organization. Performance appraisal:

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Bank Al-Falaf adopts both approaches for evaluating performance or performance appraisal. In traditional approach, employees are evaluated on the basis of their past performance and performance is reviewed at branch levels. Each branch has responsibility to manage their performance according to the organizational goals. And the performance is reviewed once a year, usually at the end of December. In modern appoach, employees are given certain goals and targets to be completed within a specified time period which can show over all performance of each employee individually. Emloyees are provided with a clear path that what is expected of them and they are given work targets according to that and on that basis, they are evaluated. Bank Al-Falah makes certain standards for managing employee performance at the beginning of the year and communicate it with all the employees as a criteria of evaluation. And then emloyees are assessed on those standards final report is submitted by a manager to the higher authorities containing employee evaluation results from different dimensions which help HR managers to award them with increamnet in their pay orto stop their increaments from next year Training and Development: In Bank Al-Falah, employees get training in following areas: Consumer Banking Operatins Credit Marketing and Credit Proposals Credit Administration/Documentation Trade Finance Operations Marketing and Selling Skills Customer Services Skills Perfomance Appraisal Skilla ( for self-appraisal) Time Management and Personel Effectiveness

Pay Plan at Bank AL-Falah

Pay is set on the basis of job ratings in Bakk Al Falah, First jobs are ranked from top to bottom on the basis of compensable factors (Qualification, skills and work conditions). Employees with higher ranks get higher pay and accordingly.
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Compensable Plans for Employees: In Bank AL-Falah, compensable plan for emloyees includes basic salary, bonuses,medical facilities and allowances. In Bank Alfalah, incentive are provided to Benefits: The Bank Al-Falah provides following benefits to their emloyees: Health and life ansurance benefits Paid annual vaccations and leaves Pension and provident fund Annual bonuses Profit and gain sharing plans Discount on company products Conclusion: Thus we seen how well a HR department can help an organization to run its operations more effectively because all the major decisions relating to companys success are closely related with the well functioning of an HR department. Means good the HR department of a company is, the better is its performance, more chances are there that it will lead the market in all of its human resource management aspects. Companies which give more importance to their HR department are more likely to have the more satisfied and productive workforce because a good HR department ensures the better performance of their employees by giving more value to their employees and considering them the assets of the company.HR department is the major functioning area of a company which has to overlook things regarding setting the employees pay, giving them benefits and assuring their best performance by setting certain targets for them, on the completion of which they may receive incentives to keep them on track. Thus the HR department contributes in the ultimately goals of Bank Al-Falah and all companies by keeping their employees satisfied which helps them to give their best of performance, hence creating value for their customers. And this tend be the ultimate goal of any organization to provide best services to their customers to that of what their competitors are providing.

Sources of information: 1. Internet

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2. Bank al-falah website 3. Fahad malik , Operation Officer at Bank al-falah (Ghotki branch contact:famalik@bankalfalh.com cell phone: 03337224506

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