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PMBA I

Lahore School of Economics

BUSINESS
COMMUNICATION
Report by: Ali Fakhar, Adil Iftikhar, Hiba Shujat and Rohma Ahmad

INTRODUCTION
In todays world communication plays a vital role. Communication can be defined as an
exchange of information between a sender and a receiver. There are various communication
processes and methods. They vary from organization to organization. There can be differences
and similarities in the communication processes based upon the type of organization.
Communication can be of two forms: Internal and external. Internal communication is based
upon the communication that takes places within the organization more specifically between the
people working in an organization or in other words within departments of the same
organization. Whereas external communication is based upon the communication with the people
outside the organization. It helps to stay connected and enhances collaboration. Both the internal
and the external communication are important for an organization and they help in determining
the performance of an organization. In case of developing organizations the communication
process and approaches could be difficult as compared to the developed organizations. Effective
communication helps an organization.
There are various differences between developing and developed organizations. Their
communication processes and their approaches towards communication are different. They have
different channels of communication and the different technologies for communication. But for
both, communication plays an important role.
This project is based upon analyzing the communication process and approaches used by a
developing organization. For our project we have chosen a private bank named as Apna Bank.
We have selected this bank because of the fact that it is in its developing stage and secondly due
to its differentiated services as compared to other banks. The mission of Apna Bank is to
provide financial services to the people who are less privileged and also motivates women
Empowerment and entrepreneurs in less developed areas in Pakistan. Since its a developing
bank it has few branches but aims towards nation-wide expansion. We selected this bank in order
to find out about the communication process of a developing bank, its internal and external
audience, and its communication approaches/methods.
Apna Bank helps people in managing various economic projects by knowledge and enhancing
their skills and empowering them. It mainly focuses on agricultural and rural areas development.

Mission
Alleviating poverty by providing financial services and professional advice which have a
lasting impact on our customers standard of living, their financial sustainability and growth in
their generation.
Core Values
The core values of the bank include:
Service, creativity, Honesty, Growth, Transparency and Reciprocity
Products:
Apna bank offers three main products, they are mentioned below:
1. Deposit Products including Apna Current Account, Saving Account, Deposits, Sarmaya
Account, Apna Mahanama Munafa and Profit Account.
2. Loans Products: Apna Hunner, Apna Sawari, Apna Maal, Apna Mustaqibal, Apna
Karobar, Apna Ghar, Apna Group, Apna Tractor and Apna Gold.
3. Composite Insurance to all the borrowers and the depositors
RESEARCH OBJECTIVES
The research objectives of the current project are mentioned below:
1. To determine the communication process of a developing organization: Apna Bank
2. To determine the differences in communication processes of developing versus developed
3.
4.
5.
6.
7.

banks.
To analyze the services and products offered by Apna Bank.
To analyze the operations of Apna Bank.
To analyze the communication process of Apna Bank
To analyze what communication methods are being used by Apna Bank.
To analyze whether the bank uses modern technology to improve its communication

process or not.
8. To investigate how the communication process used by Apna Bank is different or similar
to other banks.
9. To analyze the internal and external audience of the bank.
10. To analyze how the information is being stored.
11. To analyze the structure of a developing bank.
12. To investigate about different policies related to communication in a developing bank.

RESEARCH METHODOLOGY
The research methodology included both primary and secondary research.

The Primary research was based on Interviews and Observations.


The Secondary research was based on online research (information provided on the
website of the bank).

We visited the provincial office of the bank located on Davis Road, Lahore. Interviews were
conducted from the employees working in the bank. The provincial head of Apna Bank, Mr.
Malik Shahid Mahmood was kind enough to give us time for a detailed interview. We inquired
about the differences between Apna Bank and the other banks operating in Pakistan. The
interviews helped in gathering information about the communication processes being used by the
bank. They helped in determining the differences between a developing bank Apna Bank and
developed banks. The employees described the communication approaches used by Apna Bank.
The internal and external communication that is mentioned later in the report. They gave us
insight about the effective communication processes.
We also visited the website of the bank. The website included information about the management
of the bank, its products, its financials, and other information such as News and Events. The
bank has updated its website properly. People can post their complaints online, they can find out
about ATM services, location and helpline. This shows that the bank tries to enhance
communication with its customers i.e. external communication.

Internal Audience
The internal audience communication process of the Apna Bank Limited is analyzed in this
section. A visit was conducted to the provincial office of Apna Microfinance bank. This branch is
located at Davis Road Lahore. For a detailed and thorough analysis of the internal
communication of the bank, Mr. Malik Shahid Mahmood was interviewed. Mr. Mahmood is the
SEVP/ Provincial Chief of the Apna Microfinance Bank.
The communication for internal audience is analyzed on the basis of ten factors such as use of
letters and memos, types of letter heads, method of writing agenda/ taking minutes, manner of
conducting meeting, communication method with employees, direction and signs of instructions
posted, seating arrangement, color schemes, lights and the facilities available. Each of these
factors are explained in detail below.
1. Use of Letters and Memos
Apna Bank uses email, letter and memos for the day to day and important communication. The
routine messages such as communication between employees, junior and senior staff, daily
operations, approvals, target assigning etc. do not have a formal format. However the bank lays a
special emphasis on the use of professional language and choice of courteous language in all
business matters. In this type of communication of Apna Bank, we find the use of You
Approach. However it is not as purely prevalent as it should be (Mehmood. Shahid, personal
communication, July 13, 2016).
Email, letter an memos are also used for formal communication such as cash requirement, leave
application, loan requirement, salary advance, personal loans with low interest, cash loans and
bank statements etc. Such email, letter and memos are written with a proper format and follow

the you approach. Any or all communication with the customers such as bank statements,
loyalty cards, ATM cards, credit cards, loan approval, complain review, payment reminders etc.
follows the principles of You Approach. Here the usage of you approach is particularly
emphasized by the Apna Bank (Mehmood. Shahid, personal communication, July 13, 2016).
2. Letter Heads
The letter head of Apna Microfinance Bank is simple and elegant. It has a logo of the bank on the
top left corner. The color scheme of green and white gives it a good touch. Apna Bank is a
microfinance bank and its focus is on poverty elevation in Pakistan. The letter head and theme of
the bank perfectly captures the spirit of poverty reduction. Hence we can say that the you
approach is well reflected by the letter head. A copy of the letter head has also been attached in
the Appendix section of the report (Mehmood. Shahid, personal communication, July 13, 2016).
3. Agenda and Minutes of Meeting
There are several meetings conducted by various officials. Each of the meetings are of significant
importance. Mr. Mahmood the provincial head told us that there is no concept of less serious and
more serious meeting at the Apna Bank. If a meeting has been called, a serious matter or
discussion is intended. Before the meeting can commence, an agenda is circulated among all the
members attending the meeting (Mehmood. Shahid, personal communication, July 13, 2016).
In every meeting, one participant is designated the job of taking the minutes of the meeting. This
participant does not otherwise contribute in the meeting and is only responsible for taking the
minutes.
A copy of a meeting agenda as well as minutes of meeting could not be availed because of
security and privacy concerns by the bank. However during the interview, it was inquired that

how the use of you approach is applied in the agenda and minutes of meeting. The provincial
head confirmed that the you approach is thoroughly applied in every agenda and minutes of
meeting. Each agenda states how the meeting is significant for the growth of the bank and the
role of each participant is clearly highlighted. Minutes of meeting also include the success and
failures of the meeting. The minutes are also reviewed to analyze whether the meeting agenda
has been fulfilled or not. Hence we can say that the you approach is used in both agenda and
minutes (Mehmood. Shahid, personal communication, July 13, 2016).
4. Manner of conducting meetings
The meeting is headed by the group head who is also the most informed person. The group head
begins the meeting and presents the issue under consideration. All participants present their
views. It is intended that the targets of the meeting are fully achieved. The provincial head, Mr.
Malik Shahid Mahmood specified that the bank lays serious emphasis on the conservation of its
resources. Time and resources are not to be wasted. If a meeting has been arranged for
troubleshooting an alarming issue, than at the end of the meeting the solution or at least the plan
of solution must be reached.
Juniors and new people are also welcomed to present their ideas. Good suggestions are
welcomed at the Apna Microfinance bank. Each participant of the meeting has to prove how their
suggestion will work for the betterment of the organization. Self-benefiting ideas and opinions
are strongly discouraged. Hence the use of you approach can be found here (Mehmood.
Shahid, personal communication, July 13, 2016).
5. Communication with Employees

The aim of Apna Microfinance Bank is to deliver quality service orientation and customer
service. The employees are trained through training and orientation programs. In these trainings,
the employees are taught the standards of communicating with fellow employees, seniors and
customers.
At the provincial office of Apna Bank, Mr. Mahmood heads 70 branches. He states that
whenever he communicates with any employee, he needs the response. The provincial office
provides field support such as salary handling, human resource matters, renovation, information
technology and deposits etc. Hence any lapse in communication cannot be afforded. The
communication between employees has to be clear and free of any ambiguities so that losses and
delay in operations can be avoided. Here the you approach is subsided and more emphasis is
laid on the achievement of objectives (Mehmood. Shahid, personal communication, July 13,
2016).
6. Directions and signs of instructions posted
The State Bank of Pakistan makes if obligatory for all banks to display certain instructions such
as timings, schedule of charges, whistle blowing, telephone numbers, balance sheet, note
checking guidelines etc. on the notice boards. We found all these instructions clearly displayed at
the Apna Microfinance Bank. All these instructions are for the facilitation and convenience of
employees as well as customers. Hence the you approach is definitely found is this area of
internal communication (Mehmood. Shahid, personal communication, July 13, 2016).

7. Seating arrangements

The seating arrangement of the bank is open and friendly. The branches are fully air conditioned
and good quality chairs are placed in all branches. Waiting area is also well built and comfortable
chairs have been kept there. However we felt that in the consumer branches of the bank, the
waiting seats were few as compared to the number pf customers. We found several customers
standing. However the seating arrangement for the employees were satisfactory. All officials
such as the branch manager, customer service officer, cashier, accountant, relationship manager
etc. were present and available for the clients. The you approach can be seen in this area of
communication (Mehmood. Shahid, personal communication, July 13, 2016).
8. Lights
The bank was well lit with the help of white energy savers. The ambiance and atmosphere of the
bank was friendly, inviting and comfortable. The you approach is well reflected by the lights
(Mehmood. Shahid, personal communication, July 13, 2016).
9. Color Scheme
The Apna Microfinance Bank has a color scheme of green and white. This color scheme goes
perfect with the theme of the bank i.e. poverty elevation. The you approach is also highlighted
in the color scheme (Mehmood. Shahid, personal communication, July 13, 2016).
10. Facilities Available
There are several facilities available such as comfortable sofas, waiting area, air conditioners, tea
area, prayer room, house loan, car loan, student loan, deposit mobilization, credit card, ATM
card, discounts, annual increments, festival bonus, performance bonus etc. These facilities are
available for the employees as well as the clients (Mehmood. Shahid, personal communication,
July 13, 2016).

External Audience
The importance of external communication is as vital as internal communication, it creates a
channel between the organization and the outside environment which includes customers, other
organizations or banks etc. In modern businesses, external communication is considered to be the
life force of the organization. There are various ways to communicate externally i.e.; oral, verbal
or written media. Many modern technologies like telephone, internet, television, telex, teleprinter, transmitters are being used to serve the purpose of external communication.
The communication for external audience is analyzed by the following factors
Website:
Apna bank launched its website in 2001 at the time of incorporation of the bank. Since then they
are updating it and making it more consumer friendly. The link to their website is
www.apnabank.com.pk
Website is quite simple and clearly stating all the relevant information for the external audience.
Different tabs are provided for the separation of the information. They have shared their mission
statement on the home page of their website, clearly giving an idea to the external audience
about the company's aim and objectives. The bank lays emphasis on the "AIDA Model" while
designing this website. Its green and white color scheme attracts the viewer and develops the
interest of the customer in the website. Proper division of the information helps the customer in
desiring the products of the bank. And finally customer is led towards the action of acquiring
services from the bank.
Brochures and Leaflets:
Brochures and leaflets are most commonly used informative papers which deliver the handy
information about any organization. Likewise, Apna bank also communicates with the help of
brochures and leaflets to their external audience. Apna Bank's elegantly designed and sufficient
information containing brochure and leaflets let it stand out from the crowd delivering the
highest standards of external communication. They are designed according to their target
audience and thats why they choose Urdu language with the color scheme of green and white.
This reflects the AIDA model was in consideration while designing the brochures and leaflets.
Leaflets and brochures are attached in the appendix section of this report.

Advertisements:

Like most of the other organizations, Apna Bank also runs its advertisement campaign. It goes
for different ways and media. Currently Apna bank is advertising through newspaper, bill boards,
personal relations and referrals. According to the provincial head, Mr. Malik Shahid Mahmood,
Apna bank is planning on tvc and it will be on air with in next 3 months.
Sign boards:
Attractive and digitally designed sign boards are also used to cater the purpose of external
communication by Apna Bank. Apna bank has used appealing sign boards at different places
outside their provincial office and branches, making it easier for the external audience to locate
the office/branch. Color scheme of the sign board goes with the brand color of green and white.
Bill boards:
Billboards are typically used in the major cities to appeal the target across the roads. Two bill
boards are used by Apna bank outside their Regional Office on the Main Sundredas Road,
Lahore
Receipts:
Apna bank provides two types of receipts
Deposit slips: It is used by the customers to get their money deposited in the bank. It is
consists of two copies, one stays with the bank and the other given to the customer for
his/her own record after depositing the money in the bank.
Bank Statement: It is a statement requested by the customers containing all the debit and
credit transactions of the particular account. This information is highly confidential.
Account holder has to be present in person in the bank in order to collect it and if for
some reason account holder cannot come, he/she needs to authorize another person by
signing on the authorization letter.
Directions and signs:
Different signs are used by the Apna bank in branches, such as Notice Board, containing all the
official circulars or any notices by the Apna bank itself or by the State bank of Pakistan,
Government or Law enforcing institutions.
Apna bank has also used directions to direct the customer in the branches by displaying the signs
of customer service, account opening, cash counter, lockers etc.
Information regarding the genuineness of the currency note is obligatory for every bank and
Apna bank has displayed this information very prominently.

Atmosphere and ambiance:


Apna bank has created full professional atmosphere in their head office and branches. They make
sure customers feels comfortable when they enter in their branch. Employees are so
professionally trained that they create friendly environment so that the customer doesn't hesitate
in delivering his/her message. The use of light bulbs is very significant in the bank and air
freshers are used more often. AIDA model is well reflected by the atmosphere and ambiance.

Recommendations and Suggestions


In this section, we provide recommendations for the lacking aspects and improvement for the
future. The recommendations are purely based on the research undertaken.

The manner of communication used for routine and day to day communication (emails,
letter and memos) lacks the appropriate use of you approach. For its improvement, the

bank can lay out a simple format for all employees to follow in daily communication.
The you approach should also be stressed in the minutes of meeting. The bank lays
more focus on the achievement of objectives of the meeting. The failures are harshly
stated. Focus should be diverted towards the problem, its cause and away from the

people carrying out the job.


Communication between the employees can also be improved by training. The
guidelines as well as benefits of you approach can be shared with all staff through

workshops.
Employees should be trained to make correct use of English and Urdu languages.
The space allocated for the waiting areas in branches should be increased. Comfortable

seating arrangement should be done for the waiting customers.


The bank should also have chairs available for people with physical disabilities.
Customers should also be welcomed to use the facilities available in branches. Water
dispensers, clean disposable drinking glasses, tissue rolls etc. can be kept in the
branches.

The bank can make use of interesting icons, pop ups and videos in its website to

stimulate consumer attention, interest, desire and action.


There was a stack of brochures lying silently on one counter. The brochures should be
handed to each and every client that walks through the doors of Apna Bank in order to

increase awareness about the bank and its product offerings.


Television commercials should be launched with full severity to enable the bank gain an

edge over its competitors.


Small signboards in public places such as bus stops and main intersections can help
increase the publicity of the bank.

References

About AMBL. (2016, May 23). Retrieved from http://www.apnabank.com.pk/about-ambl/


HINDS, P., K, S.,1995 Communication across Boundaries: Work, Structure, and Use of
Communication Technologies in a Large Organization. Organization Science, 6(4), pp. 373393
JONES. E., WATSON.B., GARDNER, J., GALLOIS, C., 2004.Organizational Communication:
Challenges for the New Century . Journal of Communication, 54 (4), pp.722-750
PURVES, K., 2005. Meetings & Incentive travel. Corporate communications, 34(3), pp.13- 15
SAUNDERS, M., 1999., Linking external communication & organizational effectiveness.
Organizational Development Journal, 17(4), pp. 35-40.

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