Professional Documents
Culture Documents
Submitted To:
Prof. Mohsin Iqbal
Submitted By:
Muhammad Asif Sahu MBAE2008-151 Mohsin Elahi 146 Khurrum Masood Khawaja MBAE2008-137 MBAE2008-
4th Semester
Date of Submission:
4th Aug 2009
WITH
GROUP
MEMEBERS
MISSION STATEMENT
Bank Alfalah Limited is going on the road of progress very successfully assessment of the needs and wants of consumers is an ongoing process at Bank Alfalah, which helps it to continually develop new product and services. At Bank Alfalah Limited the philosophy is that the bank should go to all possible limits to satisfy the customer needs. The Bank is continually formulating new product and services for the growing and diversified needs of its ever-expanding client base. The Banks commitment to its customers is evident from its mission statement. To provide innovative and high quality product to its customers at eh lowest possible rates. To achieve All set goals regarding services performance and goodwill
VISION
Our vision is to be a leading financial intuition with a niche in areas where we have a completive advantage with complete banking solution our focus is an improving performance in each of our business to achieve consistent and superior returns of or our highly valued client and shareholders.
ORGANIZATION HIERARCHY
THE CHAIRMAN
H.H Sheikh HAMDAN BIN Mubarak Al- Nahayan is an important and prominent member of the ruling family of Abu- Dhabi. After the culmination of his studies at oxford he returned and took responsibilities of the State administration in 1988, he was appointed the President of the higher colleges of technology comprising of eight colleges throughout the UAE a responsibility he fulfilled which distinction. In 1990 he was appointed (MIS) Minister of Higher Education and Scientific research. Presently he also holds the presidency of the society of the natural history and National Heritage. In 1992 he become the chairman of the Union National Bank and has since remained involved in strategic management of the institution During the first five year, he effectively managed the bank in the absence of a Board of Director and steered it to success as one of the leading Bank of U.A.E
BOARD
OF
DIRECTOR
Chairman Director Director Director Director Director
H.E.Sheikh Hamdan Bin Mubarak Al Nahayan Mr.Abdulla Nasser Hawaileel Al Mansoori Mr. Abdulla Khalil Al Mutawa Mr. Khalid Mana Saeed Al Otaiba Mr. Ikram Ul-Majeed Sehgal Mr. Nadeem Iqbal Sheikh
INTRODUCTION
Bank Alfalah Limited was incorporated in June 21st, 1997 as a Public Limited Company under company ordinance 1984, its banking operations commenced from Nov 01, 1997. The bank is engaged in commercial Banking and related services as defined in the banking companies ordinance, 1962. Bank Alfalah has emerged as one of the leading commercial bank in the financial sector of Pakistan. Bank has made significant contribution in building and strengthening both Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
Bank Alfalah Limited, Pakistan United Bank Limited , Pakistan Alfalah Securities (Pvt) Limited Alfalah GHP Investment Management Ltd, Pakistan Alfalah Insurance Company Limited, Pakistan. UBL insurers Company Limited, Pakistan. Taavun (Pvt) Limited Pakistan
DEPARTMENTS:
CD (current deposits) Department. Foreign Exchange Department. Loans and Advances Department. Accounts Department. Communication Department.
Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
CORPORATE CULTURE
Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
CORE VALUES
Humility Extreme Customer Care/Focus Courtesy and Respect Honesty, Integrity and Trust Commitment and Hard work Creativity, Innovation and Quality Justice and Fairness to all Stake-Holders Open, Honest and Direct Communication Provider of growth and equal opportunity
Bank Alfalah is considered to be a very sound bank in the financial circles. A bank, where the customers can safely keep their money as long as they want. I am pointing some of the major strengths of the bank. Bank is financially strong and has a huge deposit reserve Its cost of funds is less as compared to money of its competitors Highly professional human resource department Commitment of sponsors Efficiency Phenomenal growth Vastly experienced management Foreign trade is the focus of bank. it has become an ideal bank for the importers and exporters As for as Bank Alfalah Ltd is concerned, it is one of the top in all-domestic commercial banks in Pakistan. The rapid increase in branch network shows the Banks performance within seven years, which is worth considerable. This is the largest PCB (Privatized Commercial Bank) in terms of assets and equity base. It provides a full range of commercial banking services with a focus on short term & Long term lending. The investments further reinstate management approach towards risk-asset management whereby only quality investments are booked on the balance sheet.
In 2000 the bank also started publishing a newsletter aimed at increasing interaction and exchange of views between staff for better coordinations and communication. The employees are encouraged to contribute articles for this newsletter, which serves the dual purpose of staff development and evaluation of common corporate culture.
1.2
1.3
1.4
Individual Hiring Individual hiring is to be done from time to time when a branch or unit has a need to induct additional staff, or for replacement of outgoing staff. The Manager of the Branch/ Department where recruitment is to be made will first fill out the Job Requisition Form and send to HRD. After minimum of 7 days of posting on portal, if suitable replacement within the Bank is not available, then external recruitment is allowed subject to HRE Factor ( for BB & SME Group) and other requirements being met and a genuine business need is established. Hiring Managers (in initial selection interviews) must not commit any salary range or other perks to perspective external candidates in their initial interviews. Both Salary and Range will be first agreed by HRD and then conveyed to the candidate after clearance by Interview Panel. Minimum Entry Requirements 1.5.1- Minimum entry requirement for employment in Bank Alfalah Ltd. in officers cadre is graduation from a recognized university of home country or abroad. However, condition of graduation may be waived by CEO to suit the requirements of the Bank, especially for cashiers, sales/ verification/ recovery staff of various Products/ Call Centre, However, such employees will be on Contractual Employment. Their services will be regularized after clearance of test and completion of graduation.
1.5
TRAINING
2.1 In-Service Training
&
DEVELOPMENT
2.1.1. Training Need The objectives of training activities are to keep BAL employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. For this purpose a systematic approach for conducting TNA on scientific basis is being developed by a sub-committee of Learning Council comprising of members from TDC and HRD. The proposed TNA exercise will be launched as soon as it is fine-tuned and after taking all the stake-holders into confidence. 2.1.2. Annual Training Plan An Annual Training Plan shall be circulated on quarterly basis for both Training and Development Centres, keeping in view the requirements of various departments of the Bank currently identified through the annual appraisal form and feedback from Audit Division. After conducting the TNA, this training plan will be more reflective of actual training needs of our staff. The plan would list all workshops, courses & seminars to be offered during the quarter. 2.1.3. Minimum Training For All It is obligatory for each employee of the Bank to attend at least two days of training in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses in advance (as prescribed by the concerned Training & Development Centre). Employees are encouraged to take initiative and get them nominated through their supervising officers for training courses relevant to their needs. New Joiners Training All newly inducted staff members are provided systematic training in groups at Banks Training & Development Centers at Karachi or Lahore, to make them well conversant with Banks operating procedures, rules, history and culture before they commence their job with the Bank. Furthermore, the purpose of this training program is to emphasize on customer service, courtesy and manner, as well as a number of other unique focus areas. Training plan for new joiners
2.2
2.2.2
2.2.3
2.2.4.
First and third Mondays of every month, training courses will be organized in small batches. In some cases, training will be Program Structure imparted through individual instruction and systematic and guided study of operational manuals (followed by quizzes). Venue - TDC Karachi (for branches in Southern Areas and Area Multan) - TDC Lahore (for other Northern Areas) Mostly in-house faculty, plus some field specialists. For Branch Managers orientation session, concerned Area Manager and one or two available Group Heads/ GMs will be invited for discussions/ presentations. Detailed contents are handed over to candidates upon their arrival at the TDC.
Faculty
Course Contents
2.3
Batch Training Program As per the requirements, the Bank recruits batches of fresh graduates under various schemes through a competitive process and offers them comprehensive training. The batch trainees will be also required to go through on-job training by way of structured rotation programs at the end of every module.
Four one-week modules evenly spread over the year (one in each quarter). Program Structure These modules will be run twice every quarter to cover the entire Branch Manager Population (including IBD Branches) - TDC Karachi (for participants from Southern Areas and Area Multan) - Training for participants from Northern Areas will be conducted at some external location at Lahore due to inadequacy of space and other constraints at TDC Lahore Premises. A Combination of in-house faculty, field specialists, senior BAL Executives and external Trainers.
Venue
Faculty
In order to induce BAL employees to contribute in the important venture of Training and Development on core banking modules i.e. Operations, Trade Finance, Credits & other management/ soft skill areas depending on the nature of batch, existing staff selected for faculty position who are posted at field or Head Office, will be provided secondment allowance equivalent to 20% of their gross salaries per month, with the minimum of Rs. 10,000/- and maximum of Rs. 40,000/- p.m. The period of secondment allowance should not exceed more than three years. After the period of three years, if the said staff wants to continue in the same position, he/ she will not be entitled for Title allowance. For Short period placement of any officer to TDC as faculty member, the following Title Allowance may be allowed: o For Range IV VI ------- Rs. 50,000/- per month
3.2
3 .3.
3 .4.
Salary & Allowances for Officers & Executives (Minimum starting pay)
3.4.1. Salary and allowances of officers and executives of the Bank is as follows: (All Amounts in PKR)
Range Basic I II III IV V VI VII VIII IX 3,500 5,500 8,000 12,000 16,000 20,000 25,000 50,000 65,000
House 1,400 2,200 3,200 4,800 6,400 8,000 10,000 20,000 26,000
Util. 350 550 800 1,200 1,600 2,000 2,500 5,000 6,500
Drivers All. -
Maint. Resid. All. Furnit. Telep. Maint. All. 1,500 1,500 1,500 2,500 3,500 5,000 Resid. 3,000 4,000 5,500
Gross 5,750 9,000 13,000 20,750 27,000 33,250 47,500 88,500 115,500
3.5
1,400
350
300
5,550
No No No No No No
Fuel in liters only in cases where Bank car has been provided to concerned officer. High performing staff members, whose job function necessitates extensive travel, may be authorized some fuel expense reimbursement. All such cases should be forwarded to HRD by concerned branch (duly recommended by Area Manager/Unit Head) for processing, approval and record keeping. Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.
***
A small limit may be allowed on functional basis, to be advised through HRD. Based on functional requirement, cellular phone limit for following will be as under : Branch Managers Rs.3,000/- p.m.
Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned Assistant Executive-In-Charge, HRD for obtaining necessary approval & record keeping.
****
Allowed only for Branch Managers and Senior Management at HO: One mass circulation & a business paper
Bank will provide club memberships of a local club to Executives-incharge and Area Managers/Country Heads with fixed monthly Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
3.7
Furniture Facility
3.7.1 Abolition of Existing Furniture Facility The existing furniture facility is being abolished. As such no facility will henceforth be allowed, effective from January 01, 2007. 3.7.2 Introduction of Staff Furniture Loan Instead of furniture facility, the Furniture Finance Policy has been introduced which will be effective from January 01, 2007. All confirmed regular employees working in Salary Range IV & above and have completed two years continuous service with BAL will be entitled to avail the facility as per following details: Range IV VI VII VIII IX Limit 150,000 250,000 350,000 500,000 Installment 2,300 3,830 5,370 7,660 Mark-up will be charged @ 9% on reducing balance method. Mark-up
3.7.3 Repayment of Finance The finance will be recovered in 90 monthly equal installments (Principal + Mark-up) accrued there upon. No relaxation of installments will be given even during the salary of Eid months. (Copy of repayment schedule is attached). 3.7.4 Policy options for those staff who have already availed furniture facility. All those staff members who have availed furniture facility as per previous policy and still have some outstanding amount shall have following: i. They may continue to avail such facility, however, no furniture allowance will be paid to them till the value of furniture presently in their use become zero after charging depreciation as per rules. ii. All those who have already availed furniture facility may avail furniture loan up to the extent of outstanding Written Down Value (WDV) to liquidate the present outstanding balance. The recovery of said loan will be through monthly installments as mentioned above. iii. Those who are not interested to avail Furniture Finance may adjust outstanding Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
Furniture Loan Application on prescribed format. Details of furniture to be purchased. Promissory Note (For Individuals) Mark up Agreement (IB-6C) Letter of Installment Letter of Disbursement Letter of Hypothecation of Movables
3.7.7 Approving Authority Assistant Executive-In-Charge, Human Resources Division Refer Circulars: 1) OPRN-007/HRD/DAN-54/2007 dated 16-01-2007 2) OPRN-023/HRD/MI0207/2007 dated 02-02-2007
3 .8.
Fuel Allowance
At the discretion of the management, officers posted in business units such as Car Finance, Credit Cards, BDO, Home Loans, Agriculture Finance, Credit Marketing, are allowed payment of Fuel Allowance ranging between 50 ltrs. to 200 ltrs. (based on their functional requirements if recommended by concerned Heads of Division / Departments).
3 .9.
3 .10
Title Allowance
Branch Managers, Asst. Executives-in-Charge, Product Heads, Area Managers and Executives-in-Charge may be paid Title Allowance till such time they hold these positions. Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
3 .11
(In liters) 1300 CC 250 Yes 1300 CC GL or300 Yes Equivalent IX 1500 CC / 1300 CC 500 Yes Management of the Bank may allow Bank car facility (1000 c.c.) plus fuel upto 200 liters per month to officers in salary range VI, based on their functional requirements if recommended by Executives-in-Charge/Area Manager. 3.11.4. Second car for Executives-in-Charges and Area Managers Executives-in-Charges and Area Managers will be eligible to have second car (1300 c.c.) based on their functional requirement. Area Managers may also avail additional 100 liters fuel in addition to their fuel entitlement mentioned in above (upto maximum 500 liters). 3.11.5. Repair & Maintenance Maintenance costs of Bank cars allotted to the Executives/Officers will be borne by the Bank. VII VIII 3
.12
.13
.15
.16
Staff Insurance
The Bank has arranged the following types of insurance for its full time staff, at its own expense. The Banks Management may decide, at its discretion, to apply some or all of the benefits of any of these policies to staff engaged on contractual basis. Various features relating to these policies are subject to amendment from time to time. Benefits currently available are briefly introduced below: 3.16.1. Hospitalization Insurance Coverage for Employees and their dependent Parents, Spouse and Children We are pleased to advise that Group hospitalization insurance policy has this time been renewed from 1st January, 2008 till 31st December, 2008 through M/s Alfalah Insurance Co. Ltd. Details of benefits in various salary ranges are given below. It is further emphasized that only those eligible employees who have sent the requisite Family Information Form complete in all respect are covered under this policy. Please also note that Family / Dependents of all regular employees and contractual employees above 60 years of age are covered. All other contractual employees below 60 years of age are covered for SELF only.
VII 400,00 400,00 125,000 2,150 30,000 30,000 BII 0 0 IV-VI 300,00 325,0 100,000 1,300 1,800 15,000 20,000 22,500 C 0 00 I-III 200,00 225,0 75,000 1,000 1,600 10,000 15,000 15,000 D 0 00 Non 150,00 175,0 50,000 800 1,000 7,000 10,000 10,500 Offic 0 00 ers E Following will not be covered under banks hospitalization policy: - Male children above 25 years of age. - Male children below 25 years but married or engaged in a gainful employment. - Married daughters. - Working spouse if availing medical facility from any other source. - Dependent parents not residing with the employee or are gainfully employed.
M/s Alfalah Insurance will be providing Insurance cards to all our staff members which will be required to be presented in original to the concerned hospital authorities in order to avail hospitalization benefits from panel hospitals. The original letter / card must therefore be kept with care during the entire period of hospitalization coverage. Any clarifications on contents of this circular may please be directed to under signed at HRD, H.O. Karachi (Tel: 021-2461314, 2414030 Ext 2236). Meanwhile, in case of any medical emergency any of the following may be contacted: - Helpline Alfalah Insurance 0321- 4041555 - Dr. Fawad Sarwar (Alfalah Insurance Lahore office) 0321- 4227676 - Dr. Syed Rehan Jalal (Alfalah Insurance Karachi office) 0321- 7031393 - Mr. Syed Fariduddin Hyder (BAL HRD H.O Karachi) 0300- 2007736 - Mr. Mubashir Iqbal (BAL HRD H.O Karachi) 0300 -2834938 Refer Circular: 1) HRD/R2008/MI Dated December 31, 2007. 3.16.2. Group Mortgage Insurance Coverage Lives of Employees of the Bank are covered upto the outstanding balance of House Finance liability (in the name of concerned employee or spouse) with the Bank would be taken over by the Insurance Company and no liability will be borne by the family of the deceased (subject to completion of certain formalities required by the insurance company). 3.16.3. Group Mortgage Insurance Coverage For Conveyance Finance (for Clerical and Non-Clerical Staff Only) Lives of Clerical and Non-Clerical Staff members are covered upto the outstanding Conveyance Finance liability with the Bank which would be taken over by the Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
Tuberculosis
3.16.6. Medical Checkup In addition to hospitalization cover, a special arrangement has been made with the insurers whereby they will arrange for annual medical checkup of all officers in salary ranges VII and above. Arrangements have also been made to get medical checkup Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
.17
.18
3.18.1.
Provident
(Own
plus
investment
3.18.2 Gratuity payment: If period of service is less than 05 years, no gratuity will be payable. If period of service is 05 years and above, gratuity will be payable equivalent to one months basic salary (last drawn) for each completed year of service. Period of any overseas posting other than with Bank Alfalalh Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with Bank Alfalah Limited any local law governing gratuity will be applicable and if he/she is posted back in Pakistan the period of overseas posting with Bank Alfalah Limited shall be excluded provided gratuity is paid according to the local laws of overseas posting. Unpaid study leave or long leave without pay will not be considered for payment of Gratuity or any other benefit. 3.18.3 Encashment of un-availed Privilege Leave (only in case of death / termination / Voluntary Severance Scheme) 3.18.4 The employee or his/her family may retain Banks car (if provided) on book value or 10% of the original purchase price whichever is higher (only in case of death or retirement) provided the employee has spent atleast four years service with the bank. 3
.19
LEAVE RULES
3.20.2
3.20.3
3.21.4.
Daily Allowance
Employees who do not wish to use hotel accommodation can claim a daily-allowance to cover cost of hotel accommodation, food and refreshments, laundry etc.. Cost of local transport while on outstation duty may be claimed separately on the Travel Expenses Claim Form. For the purpose of calculating Daily Allowance, only the number of nights away from home base should be counted. Daily Allowance rates are as follows: Staff Range Domestic (Amount in PKR) 3,000/= 2,500/= 2,000/= 1,500/= 1,000/= 500/= 250/= International (Amount in USD) 100/= 75/= 60/= 50/= 25/= -
3.21.5 Audit Officers Cash Allowance During Audit Duty Special arrangements have been made for audit officers on audit duty. They will avail hotel accommodation usually in hotels/guest houses pre-selected jointly by Audit Division and HRD. However, they will only use the hotel for bed and breakfast facility (if included with room rate). The following per day cash allowance will be admissible to them in lieu of lunch, dinner, tips, laundry, telephone calls etc. Range I III IV VI VII & above Amount in PKR per day 750/= 1,000/= 1,250/= 3.21.6
3 .22
Other regulatory requirements The HRD will ensure deductions of Employees Old Age Benefit Contributions, Social Security Contributions, Education Cess, etc. as per the rules and provisions of the relevant statutes (if applicable)
Performance Management
The promotion procedure revolves around the following two activities, which are to be completed and recorded as described below. Promotion Interview Interviews for promotions to specified positions in the branches will be conducted by one or more of the following officers of the Bank as elaborated below: Branch Manager (BM)/Chief Manager (CM), Area Manager (AM), Executive-in-Charge (EI). Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
Promotion interviews for Head Office staff will be conducted as follows For promotion to Ranges I, II & III Ranges IV, V & VI Ranges VII & VIII Range IX 1st Interview Head of Dept. Head of Dept. CEO CEO 2nd Interview Concerned EI Concerned EI ----3rd Interview --EI HRD -----
Summary Benefits The primary benefit of succession planning is that a sequence of personnel actions is initiated so that one or more candidates are identified for each key position in advance of actual need. This prior identification permits opportunities for mentoring and developmental activities to improve their readiness to succeed to specific positions. The benefits of succession planning are; BAL would grow its own future managers rather than recruiting outside the organization. These managers will be fully conversant with the organizational culture prevailing at the Bank. The learning curve for future managers to prepare for meeting challenges of higher responsibility will shorten. Commitment and loyalty among officers aspiring for higher positions will increase. Morale and motivation will also be enhanced, while staff turnover will go down.
Key Elements of the Succession Planning Policy BAL Succession plan to achieve its goals, the following key elements are to be incorporated in its design: CEO and top management support Integration with strategic business planning and projected changes in the organization
A review of transfer and placement needs at the point in time when those individuals are ready to advance Critical positions to be focused BAL Succession Plan is to focus on three tiers of management personnel in all units of the Bank. Succession plans for senior management levels in Tiers A (Senior Management) and Tier B (Managers of Branches/ Units) will be overseen by HRD. Succession plans for Tier C positions (Departmental Heads at Branches & Section Heads at HO/ Product Units) will be drawn and managed by concerned management at Tiers A and B, having received guidance and training towards this end from HRD.
Talent Pool A Talent Pool of bright and young employees, having post graduate degrees from reputable institutions and two years experience with BAL, will be provided training and development, and will be promoted to positions of higher responsibility on a fast track basis. Training and Development Needs HRD and TDC Management, in consultation with Senior Management of the Bank, will draw Training & Development plans for all officers nominated as successors, as well as those placed in the Talent Pool. HR Committee will monitor the progress of Training & Development Centers in providing focused training to both the groups: Nominated Successors and Officers in the Talent Pool. The following step by step plan is suggested for the implementation BAL Succession Planning Program: HRD to institute a system of identifying gaps, getting successors nominated for Tier A and Tier B positions and to prepare a quarterly progress report to be presented in HRMC meetings The HR Management Committee will review progress of succession planning Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
DISCIPLINE
Accountability of Employee
Employees shall faithfully and punctually account to the Bank or its authorized officials for all moneys, drafts, securities, account books, registers, papers, vouchers, writings, goods and chattels or other property, which they may receive as employees of the Bank on behalf or on account of the Bank or of any member of the Bank.
The competent authority, in its sole discretion and without limitation, may impose on him/her one or more of the following penalties. Institute of Business Administration, University of the Punjab, Lahore, PAKISTAN
PERFECTION
ALLAH ALMIGHTY. NO OTHER BEING LIVING OR DEAD CAN SAY THIS FOR ITSELF. SIMILARLY , BANK ALFALAH ALSO HAS SOME SHORTCOMINGS THAT NEED TO BE MENTIONED :
IS ONLY THE CLAIM OF
Bank Alfalah Limited Does Not Possess Foreign Network Most of the employees are overloaded with work Inefficient software Bank Smart No Advertising in Electronic media It is step behind in using new technology as compared to other banks Disproportionate presence management Hierarchy of Old Staff in the upper