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HUMAN RESOURCE MANAGEMENT

MBA 2nd Semester

Submitted to: Sir Saeed Khaki Submitted by: Rehan khalid Gul-e-fatima Abdul waheed M.Abdulah Roll No Roll No Roll No Roll No 10716 10717 10727 10721

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ACKNOWLEDGEMENT
We thank Almighty Allah, who gave us strength to perform our duty honestly with zeal and zest. We are grateful to Mr. Saeed Khaki for taking us through the tough curriculum of Human Resource Management and appeared it to look so easy. His versatile knowledge and extensive experience in this field greatly helped us develop our knowledge and concepts. We are grateful to him for assigning this project, which has further refined our thought about this diverse field. Finally we would like to dedicate this humble effort to our families and friends, who supported and bore with us through the difficulties during its preparations.

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Executive Summary
This project is aimed at studying Human Resource Department of Askari Bank Ltd. Following points have been discussed in the study: An overview of Askari Bank. Human Resource policies and practices being followed by the bank. The project mainly remained focussed at various human resource techniques and practices being followed at Askari Bank.

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TABLE OF CONTENTS

Ser 1. 2. 3. 4. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Subject Introduction Vision Mission statement Goals Branche Network Services being provided Organizational structure Hierarchy of Askari Bank SWOT Analysis Strategic planning HR polices HRM practices Recruitment Selection Training and development Compensation Performance management Interviews Conclusion

Page 1 2 2 2 3 3 4 5 6 7 8 8 9 11 12 14 15 16 16

INTRODUCTION

Askari Bank Ltd was incorporated in Pakistan on 9 October 1991 and commenced operations in April 1992, as a public limited company. It has since expanded to a nation-wide presence with more 226 branches being handled by a human capital of more than 6000 employees. It has the lowest turnover in the domestic banking sector. The Bank is listed on the Karachi, Lahore & Islamabad stock exchanges and its initial public offering was oversubscribed by 16 times. Askari Bank is principally engaged in the banking business as defined in the Banking Companies Ordinance, 1962. As on December 31, 2009, the Bank had the total assets of over Rs. 254 billion, with around 1,000,000 banking customers. Askari Bank has a Correspondent Bank Network in more than 95 countries with about 167 banks. Askari Bank is the only bank with its operational Head Office in the twin cities of Rawalpindi-Islamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced them to evolve and outward-looking strategy in terms of market emphasis. As a result, Askari Bank developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centres of Karachi and Lahore, where most other banks have their operational head offices.

VISI ON To be the Bank of First Choice in the Region. MISSION STATEMENT To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organisational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to all our stakeholders, and contributing to society. GOALS To achieve sustained growth and profitability in all areas of business. To build and sustain a high performance culture, with a continuous improvement focus. To develop a customer-service oriented culture with special emphasis on customer care and convenience. To build an enabling environment, where employees are motivated to contribute to their full potential. To effectively manage and mitigate all kinds of risks inherent in the banking business. To optimise use of technology to ensure cost-effective operations, strengthening of controls, efficient management information system, enhanced delivery capability and high service standards. To manage the Bank's portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. To deliver timely solutions those best meet the customers financial needs. To explore new avenues for growth and profitability.

BRANCH NETWORK

Total Branches 226 Zone Wise Distribution North (Gilgit-Baltistan, Khyber Pakhtunkhwa, Azad 54 Kashmir, Islamabad and Punjab (North of Jhelum)) Central (Rest of Punjab) 67 South (Sindh and Balochistan) 68 Sub Branches 36 Foreign Branch (Bahrain) 1 SERVICES BEING PROVIDED

Consumer Banking Visa Debit Card. MasterCard Credit Card. Mortgage finance (Home loans). Business finance (Business loans). Personal finance. SmartCash (Running finance facility for consumers). I-Net Banking (internet banking solutions). Askar (auto loans). Askari Touch 'N' Pay (online utility bill payment services). Askari Value Plus (flexible deposit accounts). Cash Management Services.

Rupee traveller cheques. Askari investment certificates.

Islamic Banking Agriculture Banking Corporate & Investment Banking

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Board of Directors

Audit Committee

Executive Committee

President & Chief Executive

Company Secretary

Chief Credit Officer

Group Head Marketing & Strategic Planning Strategic Planning & Economic Research

Chief Financial Officer

Country Head Human Resource

Chief Information Officer

Group Head Operations

Global Treasurer

Country Head Islamic Banking

Country Head Consume Banking

Country Head Risk Management

Country Head International Banking

Training &
Development

Country Head Electronic Technology

Country Head Credit Administratio n

Wholesale Bank Branch

Bahrain

Islamic Banking (31 Branches)

Secured Assets Products

Country Head Special Asset Management Executive In charge President Support

Marketing & Media

3 Regional Foreign Trade Units

3 Regional Operations Units

Unsecure Assets Products

Service Quality

Head Legal Affairs

Office
Country Head Compliance & Data Country Head Audit & Inspection

Complaint Managemen t

Chief Information Security Officer

Country Head
Establishment

HR DEPARTMENTS

Country Head HR I

Training & Development

Recruitment & Selection

Organisation Development - Policies formulations - Performance Management

HR Operations

- Compen & Benefits Adm - Payroll - Leave

SWOT ANALYSIS of Askari Commercial Bank STRENGTHS

Holds a sound repute in the financial circle Personalized services of the staff to the employees Located in the commercial area, so that the customers face no problems in reaching to the bank. Maintaining the healthy correspondent relationships with foreign banks Provide a record business in exports sector It has a reliable and easy to use internal computer system. All the transactions and information regarded the customers deposits has been computerized. Currently, Unibank System is being practiced for this purpose. Now Askari Bank is decided to change the Unibank System ACBL has launched its Mobile ATM Bus Service, which is the Pakistans First Mobile ATM Bus Service. No other bank has taken initiative of mobile ATM Bus yet.

WEAKNESSES
No advertisement on electronic media has been seen yet. Since, ACBLs major competitors are Union Bank Limited and Bank Alfalah has started large media campaign, so keeping in view these threats, Askari Bank should emphasize more on its advertisement. some of the employees are burdened with over work. Division of work and description of job is not properly defined to each and every staff member.

OPPORTUNITIES
All the opportunities of the 21st century are to be availed in the information technology. Information technology is the future. Therefore ACBL should emphasize much on IT, ACBL should emphasize on E - Banking. In which Bank can design a universal account like other foreign banks, to enhance online facilities. Askari Banks growing business requires an extensive branch network. There are great opportunities for ACBL for the expansion of its business.

THREATS
Askari Bank is facing a strong competition by its major competitors; Union Bank and Bank Alfalah. Business of these banks is also growing with very high pace. So in order to achieve the sustainable growth in a market, ACBL has to remain vigilant about the ever changing environment and the competitors. All the competitors are using different means and methods to popularize their product and services. So ACBL should keep in mind that a customer cannot come to the bank until he know that my demands will be fulfilled over here. ACBL should enhance the Pay Packages given to the employees, because it has been noticed that the competitors of the ACBL are giving more suitable pay package to their employees. ACBL should enhance its Branch Network, in order to capture the market of different areas. The SWOT analysis of the bank signifies that its strengths overcome its weaknesses and its opportunities are more than its threats. This is positive sign for any Organization STRATEGIC PLANNING

This Group was recently established to strengthened the marketing and strategic planning function within the Bank. The main objective of this Group is to facilitate the management in competitive positioning of the Bank in line with the market dynamics while focusing on key strategic objectives. The Group also manages marketing activities from a central platform aimed to improve the Banks image and also to serve our communities and society at large through corporate social responsibility projects. The Group also monitors economic developments by a dedicated research desk, created for this purpose, that also analysis the market in order to align our business strategies with competition. The economic research desk also provides regular updates on different industries, competition, money and stock market trends, and value drivers in order to keep the management abreast with current scenarios aiding them in the decision making process.

In order to ensure a renewed focus on customer satisfaction the group endeavors to introduce a service strategy which would bring to attention the service grey areas that lead to customer attrition. A customer complaint management unit focuses on customer concerns and addresses them by plugging the gaps in processes and workflows. In the area of strategic planning, the Group aims to facilitate various business functions by setting strategic direction backed by implementation plans with well defined goals and timelines that enables objective monitoring of such plans. The Group also oversees product development initiatives, generally based on market and customer feedback and also keeps the existing products under continuous review using product performance measurement scorecards. HR POLICY OF ASKARI BANK Askari Bank has a progressive and a dynamic human resource (HR) philosophy. The Bank believes in transforming its human capital into a key source of competitive advantage. There is a strong value system in place, which is driven by result orientation, adaptability to change, humility and respect for subordinates and peers. The Bank believes that investment in human capital is critical for achieving and sustaining growth. The Banks constant endeavour is to create a performance driven work culture with focus on employee satisfaction and retention. They strongly believe that the interests of the Bank and the employees are inseparable. They try to create a we culture where there is mutual trust and respect for each other. They encourage ownership behaviour so that everyone feels responsible for the performance and reputation of the Bank. They are committed to develop and enhance each employees skills and capabilities through extensive in-house and external training programs and job rotations. HRM PRACTICES This section includes a summary of the HRM practices being followed at Askari Bank and a detailed study of Training and Development. The HRM is one of important divisions at the Head Office that is responsible for planning, recruitment, staffing, training & development, compensation, performance management, employee relation and evaluation. The Division also handles

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matters relating to administration that proves an integrative linkage between HRD and Administration. PLANNIN G HR Department (HRD) is responsible for an effective HR planning and forecasting regarding demand and supply of employees. Forecasting Employee Demand. Employee demand at Askari Bank is derived from internal growth and influenced by following factors: Opening a new branch. Setting up new technology. Changes in customer demand. Introduction of new services. Forecasting Employee Supply. HRD ensures uninterrupted employee supply as under: Transfers. Askari Bank transfers its employees from one branch to another within the same region, especially whenever a new branch is opened. Internal Movements. Internal movements, which include promotions and rightsizing. Rotations. Job rotations are also done within the departments from time to time to decrease monotony and keep interest in the job. It is most common for On Job Training of Management Trainee Officers (MTOs). Temporary / Contractual. Temporary and Contractual employees also work in Askari Bank normally in ETD who work as Hardware Technicians and Software Engineers etc. They are generally contracted from different Software Houses. Though some of the employees at Askari Bank are permanent, yet most of them are on contract. Employee Shortage. Askari Bank has currently no growth strategy as they are not planning to open any new branches this year. The merger of Askari Leasing and doing away with an IT specialist in each branch has rendered over 500 employees surplus. This makes no employee shortage for Askari Bank at the moment but Askari Bank covers it by hiring in following two categories: Entry level hiring.

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Experienced bankers hiring. RECRUITMENT

Recruitment Process. Askari Bank recruits both fresh and experienced persons on regular basis to support its growth strategy. For this Askari Bank uses both internal and external recruitment sources. Internal Recruitment. Recruitment is the first part of the process of filling a vacancy; it includes the job analysis, the consideration of the sources of suitable candidates, making contact with those candidates and attracting, applications from them. An organization can never be better than the people it hires and this is a concept that Askari Bank firmly believes in. They boast about never compromising on the quality of its people. Sources of Applicants. Askari bank is well known of being conservative and this can be justified by the fact that they try their best to fill in any vacancies that crop up by first scanning their current employees for the required qualifications and experience. They prefer to go internally because it is considerably less costly than external recruiting. A present employee is more likely to stay at Askari Bank than an external candidate. The people already working for Askari Bank are well aware of its culture and employee demands and thus provide a better understanding for their work. The organizational policy of promoting from within enhances the employees morale, organizational commitment and job satisfaction. External Recruiting Channels. At Askari Bank, external recruiting is the last option. In case a need arises for external recruitment they meet it discreetly. When enquired on this issue, the HRD said that they do not prefer external recruitment because it may have a negative impact on the workgroup cohesion and morale. Askari Bank uses the following channels for external recruitment; Referrals. At Askari Bank, referrals act as an effective recruitment tool. Referrals are most helpful in the cases of highly specialized jobs. Employees while recommending applicants place their own reputation at stake; therefore, they are usually careful to recommend only qualified applicants. Referrals result in maintaining consistency in the workforce as the people referring their friends would be well aware of the company culture and environment and would never suggest a person they know isnt capable.

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Walk-Ins. Other common and effective methods of external recruitment are walk-ins and write-ins. These methods are quite informal and provide the applicant an opportunity to sell himself/herself to the organization. This method is appreciated at Askari Bank because it also affords them the chance to hire fresh, vigilant, determined and confident workforce for entry-level jobs. Management Trainees Officers (MTOs). Another channel of external recruitment is MTOs. These training facilitate market exposure for fresh graduates. Askari bank provides these recruits with an extensive learning program where they are taught how to deal in the corporate world and mould them into its culture. These recruits are evaluated after their internship period is over and these appraisals are filed. Whenever external filling is required, these trainees are the first option to the bank. SELECTIO N

After the recruitment, the selection of most reliable and efficient persons is carried out at Askari Bank by HRD. The sequence of the selection process is as follows: Entry Level Written Test. After recruitment, the fresh candidates have to take an entry-level test. Test is comprised of, General Knowledge, English, Math, Accounting and other subjects which might vary according to the job description. Those who clear the test are proposed to proceed further for the selection process and are short-listed. Initial/HR Interview. The selected candidates are interviewed, which is conducted by a team of Subject Matter Experts including HR officials. The candidates are again short listed by the interviewers. Final Interview. Now the Vice President - HRD, conducts the final interview. Experienced Banker

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Initial/Technical Interview. The selected candidates are interviewed by a team of Subject Matter Experts. HR Interview. The selected candidates are then interviewed by a team of HR officials. The candidates are again short listed by the interviewers. Final/Management Interview. Now the senior management conducts the final interview. Orientation. At Askari Bank, the orientation period is two weeks. During this time the employees are given information about the job, the people around them, organizational accomplishments and the future prospects of the company. Confirmation. All new hiring remain on probation for six months. Confirmation as a permanent employee will be based on the satisfactory replies from at least three personal references including former employers as shown on the application form. Usually the most valuable references are from previous employers. Where necessary personal contact with previous employers is also established. TRAINING AND DEVELOPMENT

Training. Askari Bank conducts training of the selected candidates, which is conducted by the Training Wing in coordination with HR and other related departments. The high leverage training is done in following two main areas: Banking (general banking, credit division and foreign trade etc). Personality Development. As entry level hiring is done in two categories (MTO and General Banking/Operations Officers), therefore, both need to be taught soft skills such as customer services and communication/interpersonal skills. Training Needs Assessment Process. To identify that whether the training of an employees is necessary or not depends on the results of Annual Performance Report. In APR, the Training Pressure Points are as under: Poor performance of employees. Lack of skills in employees. Employee himself asks for training. His boss identifies him for training.

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Other than APR, following are also some of the valid reasons for conducting the training program: New hires. New technology. Internal growth. (new branch). New services. Employees Development. Various training methods are in practice at three training facilities of Askari Bank at Karachi, Lahore and Rawalpindi. Other than the training of fresh hires, there are courses for the improvement and development of current employees. Training Need Assessment (TNA) process is adopted whereby the employees along with their respective supervisor together decide what training that employee requires in that year. As a matter of fact, attending minimum 3-4 day training in a calendar year is a mandatory promotion prerequisite for every employee. Following approaches are followed by Askari Bank: On job degrees and certifications. Assessment Centre. Leaderless group discussions are occasionally held at all branches and departments followed by conferences at meetings between employees and among executives and board of directors on regular basis, for the whole day, normally after the banking hours. During training sessions Role Plays are also given to employees, which help them to develop themselves. Performance Appraisals. The most important source of employee development which results in the promotions, rightsizing, increase in salary, perks and benefits is done in Askari Bank with the help of feedback. Employee Assistance Program. All employees at Askari Bank are given the opportunity to get themselves proper training in their desired areas, Employees do an informal counselling with their supervisors for improvement in their work and also in career development. At Askari Bank every employee is given an opportunity to do extra degrees and certifications in his field or where he / she is lacking skills e.g. MBA- Executive and others. Askari Bank has also more than 50 refresher courses in different area of banking and management. Employees are fully supported at Askari Bank to take these courses and degrees.

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Sabbaticals for Training. For refresher courses, which are usually not longer than 7 to 10 days, sabbaticals are given to the employees. This motivates the employees to take these courses whenever an opportunity is there. Interpersonal relationship development. Evaluation of Training Program The most important way to evaluate the training program is by checking the linkage with the objective and goals of the bank / high leverage training. By measuring the effects on the organization. By Cost Benefit Analysis / budgeting. By checking the employee reaction. Evaluation of Trainees. At the completion of training session, the Training & Development Wing evaluates each trainee in following ways: Pre-test Post-test. Testing the employees during the session. Askari Bank conducts quizzes and evaluates the written & oral assignments. Cross Cultural Training. There is an informal cross-cultural training of employees in Askari Bank for its branch in Bahrain. Reward System. Askari Bank has a reward system for the trainees who perform better during the training session, which are in shape of appreciation letters and shields etc. COMPENSATIO N Askari Bank offers an attractive perks and privileges package, which is highly competitive. Some of the features are discussed here: Salary Basic Salary. House Allowance, 45% of basic salary. Utility Allowance, 10% of basic salary. Medical Allowance, 10% of basic salary. Fuel Allowance (grade wise ceiling from 60-550 litres).

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Benefits Performance bonus. Annual increment. Official vehicle (AVP and above). Telephone/cellular phone. Reimbursement of house rent. Furniture and fixture allowance. Club membership (EVP and above). Transfer grant. Transfer allowance (for two years after transfer). House building/car advance on subsidised rates. Personal finance/credit card on subsidised rates. End Service Benefits Gratuity (number of months pay for the number of years served). Provident fund (employees subscription + banks matching grant + profit). PERFORMANCE MANAGEMENT SYSTEM

Askari Bank has an effective performance management system. The system essentially is a combination of Management by Objective (MBO) and Behaviourally Anchored Rating System (BARS). Employees in coordination with their supervisors set their own goals. Their performance is evaluated vis-vis their own goals at the end of the year. 80% weighting is given to the goals and 20% to BARS. An Annual Performance Report (APR) of each employee is made and feedback is used as a tool for completion of APR. This is the most important practice as, promotions; increase in salary, training needs of an employee etc. are all dependent on it. In APR, employees are evaluated on basis of following skills and are graded on scale of grades starting from A to E, which have different percentages. Leadership Qualities. Marketing Skills. Productivity.

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Initiative. Communication. Job Knowledge. Technical Knowledge.

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INTERVIE WS We have gathered the required information through liaison with Zubair Ahmad Sheikh, Bank Manager Askari Bank Multan Cantt and series of telephonic interviews with top HR officials of Askari Bank. We have interviewed Mr. Riaz Khan Bangash, Senior Vice President HR and Mr. Muhammad Asif, Assistant Vice President / In-charge Recruitment & Selection. We asked following questions. What is the HR hierarchy of Askari Bank? What is the HR planning regarding demand and supply of employees and forecasting for these practices in Askari Bank? When do you have need of employee at Askari Bank? Which factors do you use in employee supply at Askari Bank? In case of shortage of employee, which method do you use to fulfil
requirements of employee, overtime or hiring?

Which method do you use for recruitment?

What are various steps of selection in Askari Bank? How much Training and Development contributing in achieving goal? What is the compensation policy of your bank? How do you carry out the performance management in Askari Bank? Which external recruiting channels are being used in Askari Bank? In which areas is the training most important? Do training methods need assessment process? Give the detailed information of HR policies in Askari Bank? What jobs do you actively recruit for? What Training & Development opportunities are available at Askari? How is the working environment at Askari Bank? CONCLUSI ON

Askari Bank is a role model for progress in our country. It has proven over the year that with dedicated hard work, phenomenal progress can be made even with totally domestic talent and resources. It is successfully growing in

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the highly competitive banking sectors in the presence of many established local and foreign banks.