P R O D U C T S
COMPREHENSIVE AND DIVERSIFIED PRODUCT PORTFOLIO
With the mission to provide all-encompassing banking services to the customers, Bank Alfalah has a uniquely defined menu of financial products. Currently it is one of the most comprehensive portfolios of personalized financial solutions that are custom-tailored to serve the requirements not only of conventional customers but also fulfill the needs of the corporate sector:
- Car Financing
- Rupee Travellers Cheques
- Online Banking
- Credit Cards
- ATMs
- Home Financing
- Islamic Banking
- Corporate and Structured Financing
Car Financing
Car Financing is one of the major renowned product of Bank Alfalah and can be utilized in terms of Financing of Used Vehicles, Loan against Car, Balance Transfer Facility, Refinancing Facility (only for Alfalah Customers) and it is characterized in terms of:
- Lowest Mark up
- Lower Insurance
- Quick Processing
- Lower Down Payment
Home Financing
Major features of Bank Alfalh Home Financing are Lowest Mark-up, Quick Processing, Multiple Repayment Options and Free Valuation. It has been bifurcated in terms of “Home Buyer, Home Construct, Home Improver, Home Balance Transfer Facility”.
- Financing Limit : upto Rs. 10,000,000/-
- Tenure : upto 20Years
- Equity Participation : 30% Borrower / 70% Bank
Rupee Travelers Cheques
Rupee Travelers Cheques are as good as cash and are accepted at the major shops, travel agents, hotels business establishments and all over the country and abroad. This service is being offered to facilitate instant fund availability to travelers and business people who used to carry a large sum of money with them.
Credits Cards
Bank Alfalah Visa Card is everywhere and globally acce pted and welcomed at locations displaying the VISA logo. It is accepted at nearly 30 million merchants and 870,000 ATMs in more than 150 countries around the globe and over 10,000 establishments in Pakistan. Alfalah VISA pays for shopping, travel, entertainment, meals and much more.
Debit Cards
Bank Alfalah Limited presents Alfalah HilalCard, the first Visa Electron International Debit Card which gives an unlimited access to current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide. The Alfalah Hilal Card comes with a host of conveniences and benefits combined with the wide reach of Visa Network enabling it to be accepted at more than 840,000 ATMs and 13 million retail outlets around the world, making it the most acceptable Debit Card available in Pakistan.
On Line Banking
To provide enhanced and value added products to customer bank is constantly striving for additional facilities. Bank provide fully automated on-line telephone banking facilities to its customers enabling them to carry out banking transactions like balance inquiries, statement requests, product information and exchange rate.
Automated Teller Machine (ATM)
The bank offers 24 hours self service banking facilities to it customers on country wide basis through deployment of Automated Teller Machine. This system allows the banking facilities such as cash withdrawls, cash deposits, funds transfer, balance inquiries, account statements. Electronic cash dispensing facilities are available in major cities of Pakistan. All ATMs are linked through a state-of-the-art Satellite Based Communication System which offers 24 hours real time service.
Islamic Banking
A separate division is a recently initiated, which operates as separate branch. It offers Shariah Compliant products through a network of five branches, which will increase to 50 by the year 2007. Islamic Banking has launched following products with the perception that these are in accordance with the Sharia Principles.
a. Alfalah Masharaka Homes
b. Murabaha Finance
c. Aflalah Car Ijarah
Corporate and Structured Financing
The portfolio concentrates on all aspects of conventional banking as well as the financial needs of corporate sector including dynamic and high value product.
-
Loaning against securities
- Letter of Credit
- Letter of Guarantee
- Demand Finance
- Cash Finance
HUMAN RESOURCE MANAGEMENT
HR system of Bank Alfalah is developed by Access Consulting.
Functions of HRD
Basic functions performed by HRD of AlFalah are:
1. Human Resource Planning
2. Job design and setting standards
3. Work rules and schedules
4. Career transition
5. Skills training
6. Management and career development
7. Performance appraisal
8. Wage and salary administration
9. Conflict Resolution
EQUAL OPPORTUNITY RIGHTS
Personal Characteristics
Promotion on personal characteristics means the promotion on the basis of age, race, color, religion, sex or national origin.
In AlFalah Bank promotion on the personal characteristics is not allowed. All peoples have the equal right for promotion. And it is a written role in the constitution of company. i.e. "Discrimination is prohibited."
Nepotism
Nepotism is the showing of favoritism or patronage to relatives. Nepotism is often criticized because family members get desirable jobs and promotions primarily by virtue of their lineage.
For prohibiting the nepotism in AlFalah there is a written rule. That is as:
1. Strictly, no relatives will be employed by the company (i.e. Father, mother, brother, sister, nephew, niece, in-laws etc.).
2. Employment of one son/daughter to be considered after retirement of existing employee, or death during service, only if the candidate is found suitable for the existing vacancy.
3. If any existing employees marry each other, then one of them, in accordance with the choice of the management, will have to leave.
- Sons/Daughters and relatives of in-service employees would not be eligible for temporary employment.
Demotion
A demotion is the reassignment of an employee to a lower job with less pay, involving fewer skills and responsibilities. As demotions may take place for reasons beyond the control of the employees. Such major changes as reorganizations, company mergers or business contractions may result in fewer jobs, forcing some employees to accept lower positions. In other situations, employees may be demoted for inability to perform their jobs according to acceptable standards.
Human Resource Planning
At Bank Alfalah Limited, Human Resource Planning involves a decision making in three areas of combined activites:
Step-I The bank identifies its organizational needs and then acquires a human resource from market pool accordingly.
Step-II Bank motivates them to achieve excellent performance by giving them different sorts of targets according to their job requirements.
Step-III It also creates an interactive link between the employee goals and the organizational goals.
JOB ANALYSIS
Job Analysis the procedure through which you determine the duties of these positions and the characteristics of the people to hire them. Job analysis produces information used in writing job descriptions and job specifications.
The incumbent of our report has below information
Name: Mr. Muhammad Mohsin Shah
Organization: Bank Alfalah, Remittance Division
Job Title: Officer Controller Remittance OG-1
Now we will explain the steps in Job Analysis, by going towards that first of all let’s examine its Job descriptions first. His main events, duties, responsibility, reporting, relationships, working conditions and his behavior. So let us discuss them one by one.
Work Activities
The main activities which has to be perform is given below.
- Get reports from external bank (i.e senders bank) department
- Get also e-report (MIS) from the verification department (corresponding bank).
- Checking the validity of EB (External Bank) reports by matching them with MIS
Human Behavior
He has to deal with direct client so he has to show his behavior very well.
In the communication he has to send report to;
Manager Branch
Manager Verification South West (corresponding bank officer) Citi Bank
Country Manager Remittances Controller, Lahore
In decision he has to satisfy client regarding TT’s, DD’s and L/C’s so he has to stay in calm at the time of rejection or delay because people normally overreact at the time of rejection and delay.
Performance Standard
This is the most important factor in his job analysis. If we talk about the standard he has to show it at the highest level because Bank Alfalah will not bear in mistake as it is merging in the market.
He should ensure;
- Ensure client to have there funds within 7 working days.
- Give full satisfaction to client regarding in and out of funds and also provide full detail on demand.
- A single wrong decision can cause serious consequences
- There should be no Excuse to client.
JOB ADVERTISEMENT:
As we know that every one is familiar with employment ads, and most of us have probably respond to one or more. To use help wanted ads successfully, employers have to address two issues: the advertising media and the ad’s construction.
Bank Alfalah has always given ads in the leading news papers of our country THE DAWN and people respond very well.
The person to whom which we have made the assignment is the remittence contoller officer in the Bank Alfalah in Remittence Department.
These are as follows.
- Organization profile
- Job summary
- Candidate profile (job specification)
- Process for sending application
Organization Profile
Bank Alfalah Limited is a Pakistan-based bank engaged in banking services The segment of the Bank includes trading and sales, which includes fixed income, equity, foreign exchanges, commodities, credit, funding, lending and, brokerage debt and prime brokerage; retail banking, commercial banking, which includes project finance, corporate finance, export finance, trade finance, etc and corporate finance.
Candidate profile (Job Specification)
As we know that it is a list of jobs “Human Requirement”, that is , the requisite education, skills, personality, and so on another product of a job analysis. The below are some requirement for the Job.
- A Master degree from a reputable university
- Excellent interpersonal, presentation and communication skills
- Proficiency in computer skills for example Microsoft Word and Excel
Experience in bank remittance will be preferred
Application Process
Source www.balcareers.com
Sample Job Description on UCP website
RECRUITMENT AND SELECTION:
Bank Alfalah Limited recruits three kinds of employees:
1. Top Level Management
2. Trainee Officers
3. Contractual Basis Employees
- SUMMER INTERNSHIP PROGRAM
Bank Alfalah offers internship positions to graduates who intend to pursue further studies in business or Commerce or post graduates students doing internships as part of their courses of study.
Good academic record and strong recommendation in writing from concerned educational institutions is required.
For our Summer Internship Programme, candidates are short listed each year on campus at leading universities. Students are evaluated for their intellectual ability, commitment, as well as for their communication and interpersonal skills. Project based group work allowing students a wide ranging exposure to the bank, its functions and various departments is a hallmark of our Summer Internships. Please contact your Placement Office for further information on our scheduled visit to your campus.
In addition, internship opportunities are available round the year at our various branches and departments.
- MANAGEMENT TRAINEE PROGRAM
Management Trainees undergo a rigorous period of training and development at our state-of-the art Training Centres in Lahore and Karachi on areas covering banking & finance and skills necessary to assume challenging assignments.
Joining the Bank Alfalah Operation Officers Batch is a sure way to get involved in various day-to-day consumer banking activities of the Bank such as: account opening, remittances, collections, clearing, government securities, lockers, etc. This position includes an intense 4-week training program designed to teach officers how to manage the above mentioned areas.
A 4-week training is provided to COs before they are posted to various branches of Bank Alfalah across Pakistan.
INSIDE AND OUTSIDE RECRUITING:
In order to forecast internal candidates, management examines the Qualification Inventories in order to see that whether any current employee has the capability to fulfill the available seats. And if the organization does not have internal employees then they decide to forecast the outside employees. Generally the lower the rate of employment, the more difficult it will be to recruit new employees.
Internal Source of Hiring:
At bank Alfalah, management tries to fin out internal source of employees by different ways like;
Job Posting
In this method management post the job in front of the employees along with its required skills through bill board, memos and emailing.
Outside Source of Hiring:
At bank Alfalah, management tries to find out external source of employees through different sources like
- Advertising
- Online E-Recruiting
SELECTION
“The selection process aims at to choose individuals who possess the necessary skills, abilities, and personality to successfully fill specific jobs in the organization”
Recruitment seeks to create a pool of suitable candidates. Once that pool has been assembled, the selection process begins. The objective of the selection is to choose the individual who can successfully perform the job from the pool of qualified candidates. Job analysis, human resource planning, and recruitment are necessary prerequisites to the selection process. A breakdown in any of these processes can make even the best selection system ineffective.
SELECTION PROCESS:
The selection process starts from placing recruitment in Newspapers.
Screening of Application:
According to the human resourse development, the received applications for any vacancy are screened according to different parameters defined by the management.
Testing:
The selected candidates are tested comprehensively in the field of English language, Mathematics, IT and General Knowledge.
Interview:
Normally rate of 20 candidates are required to appear before the interviewing committee. Interviewing Committee is consisted of Senior Executives and HR Manager.
Reference checking:
After conducting interviews, ALFALAH bank also checks the reference provided by the candidates in the application form. The number of references should be 3.
Medical Examination:
Successful candidates are also examined physically and medically, and then they are sent for training.
TRAINING AND DEVELOPMENT:
Bank Alfalah’s management believes in developing the potential of the Bank’s employees to the fullest extent. Training & Development Centre of the Bank are housed in state of the art facilities at Karachi and Lahore. The centers are responsible for providing multi-level high quality training programmes to all staff members in the following areas:
- Consumer Banking Operations
- Credit Marketing & Credit Proposals
- Credit Administration/Documentation
- Marketing & Selling skills
- Customer service skills
- Leadership and Management Skills
- Personal effectiveness and skills
It is obligatory for each staff member of the bank to attend at least two days of training in a calendar year. Wherever the Training Department is unable to provide focused training for certain groups of staff, reputable external training providers are invited to fill the gap.
In Bank Alfalah Ltd. the process of Training and Development consists of various other activities like:
- Training:
- The appraisal form of an employee indicates the areas in which the employee should be trained and developed. It also elaborates the abilities of an employee.
- Management and Organization Development Division of each region timely reviews the employees and recommends them for training during the operations it they note any discrepancy between the desired and actual performance. This review is performed after every quarter.
- Upon the request of GM (Operation), indicates which sort of training is needed in a particular region regarding the Operation Support and Service
- Development:
- Management Skill Training,
- Special Training for Foreign Transferred Employees,
PERFORMANCE APPRAISAL:
It is a structured discussion between employee and supervisor. It provides an opportunity for the supervisor to recognize an employee’s achievement, offer suggestions for improvement when needed, discuss job responsibilities, define objectives, counsel for career advancement, and justify a pay adjustment. Regarding the performance appraisal, bank adopts both type of approaches.
- Traditional Approach:
In Bank Alfalah, overall performance is reviews at branch level. Each branch is liable to show its performance in a positive direction according to set goals.
- Development Approach:
All the employees in the each of the branches are given a performa. Every employee working in the bank is assigned targets, usually their target are in the form of amount. The performances of all the branches are reviewed in the end of December. Till yet Bank Alfalah, has no computerized system to assess the performance of employees
APPRAISAL PROCESS:
In Bank Alfalah, performance appraisal is made by the branch manager with the help of performance appraisal form. In Bank Alfalah POINT RATING METHOD is used for performance appraisal.
SOURCES OF APPRAISAL
Appraisal of Manager :-
The methods of appraising different posts are different. For example appraisal of manager is done by the position of branch. If the profits and deposits of branch are satisfactory then Manager is working well and vice versa. Same the quality of work of Manager is also checked by the auditor. He report about his work to higher authorities.
Appraisal of Staff :-
Appraisal of staff is done by the Branch Manager or the Operation Manager. These people are made for the looking of operations of branches. Now the work of branch Managers is to emphasize on dealing with customers. These two authorities did appraisals of staff.
Deficiencies in Performance Appraisal System:
A completely error-free performance appraisal is only an ideal, which an organization may aim for in reality, most appraisals fall short of this ideal.
In Bank Alfalah current performance appraisal system has halo effect or also error.
Promotion Criteria:
For many employees a promotion is a highly sought prize. Status, satisfaction and financial rewards accrue to those who are able to rise in an organization. There are a number of criteria that organizations examine in deciding which candidates to promote. These are used by Bank Alfalah as:
1. Seniority basis
2. Past and current performance
3. Assessment centers
REWARD MANAGEMENT:
Reward Management elaborates how people are rewarded in accordance with their value to an organization. It is concerned with both financial and non-financial rewards. A reward system of an organization consist of integrated policies, processes and practices for rewarding its employees in accordance with contribution, skill and competence and their market worth.
In Bank Alfalah the elements of reward management system are consists of Basic Pay; the fixed salary or wage which constitutes the rates for the job. This rate is varied in a skill based or competence based system according to the individual’s skill or competence. The rates are fixed by managerial judgment of what is required to recruit and retain the employee.
In Bank Alfalah there is no any concept of individual performance related pay except to the Business Development Officer. Business Development Officers are those who are hired at contractual basis. They are assigned different targets. If they exceed to the targets they can enjoy the individual performance related pay otherwise they are fied.
The official timing of bank is 09.00 AM to 06.00 PM but almost all of the employees have to work till near 08.00 PM. However, for this additional work they are not getting any additional bonuses / over time.
Medical Allowance:
Alfalah is providing 12% of basic as a medical allowance to their employees. Most of the employees who have real medical problems see this allowance as a motivational factor.
House Rent:
Alfalah is paying 45% of basic salary as house rent allowance. Some Banks are even providing 75% of the basic pay as a house rent like RBS.
Holidays:
By working hard continuously people want to have once a long leave in a year. This is called as the privilege leave. Alfalah provide 30 days privilege leave. The bank also gives 10 casual leave to their employees
Group Insurance:
Life Insurance is the field, which is getting popular day by day because it premises to help at any contingency. This is also important today because nowadays daily we see newspaper full of accidents in which 20 to 30 people are killed in road accidents. Bank also insures their employee’s safety in this respect and provides a better future facility for their families.
Loan Facilities:
They provide loan facility to only those employees who have worked for at least three years in their bank. The loan of house is equivalent to 100 basic salaries, which should be returned back with in 20 years at 6% of interest. This is a major step taken by the Bank to motivate their employees.
Provident Fund:
Alfalah has created a separate provident fund for their employees. But it totally depends on the wish of an employee to have that advantage or not.
Retirement benefits:
Retirement benefits are given only to permanent employees. They are given Gratuity as well as provident fund at the time of their retirement.
COMPENSATION
Alfalah adheres to all laws and regulations of government. For instance, Alfalah follows Minimum Wage Board Act, Industrial Relations Standing Ordinance, and Workman Compensation Act.
Alfalah has developed ten grades for rank and file workers and have structured Pay Scale according to labor market and competition within the hospitality industry of Pakistan. The compensation for executive and secretaries is negotiable depending on the abilities and performances.
The main objectives sought through effective compensation management at Alfalah are:
- Compensation needs to be high enough to attract applicants.
- Retain present employees.
- Compensation management strives for internal and external equity.
Comply with legal regulations imposed by government
Compensation Management
Periodic additions to base pay according to employee’s length of service performing their jobs
Employee’s compensation overtime should be determined, at least in part, by differences at job performance
At attaining a predetermined work objectives
MANAGERIAL PRACTICES
Aggressive Banking
Bank alfalah expanding their network of Islamic Banking. Bank Al Baraka has been serving the Islamic banking sector since 10 years and they have only 5 braches in Pakistan. On the other hand bank Alfalah has established 20 branches in a year.
Motivation
Bank Alfalah motivating their employees by giving them comprehensive benefits and professional environment within the organization, which enhances the performance of the employees. Bank motivates their employees by giving 3 bonuses in a year.
Grade Promotion
Bank also provides benefit to their employees in the form of grade promotion. Grade promotion motivates the employee to do their work efficiently and effectively.
Abroad Posting
Bank benefits their employees by sending them on overseas posting where they can enhance their professional skills and get handsome financial benefits in terms of salary or fringe benefits.
Controlling
Bank has proper setup of controlling the day to day transactions and operational affairs. Bank controls the operations through a proper check and balance system and properly monitor the daily work.
Internal Control Unit
Bank has an Internal Control Unit that monitors the daily transactions within the organization and keeps informing the management about the rules and policies violation. Internal control unit has a proper check and balance on operations and other bank departments.
Internal Audit
Internal audit is a tool to have a proper check on daily working in a bank. Internal auditor has to point out the discrepancies found during audit. Internal auditors hand over the audit report to the audit chief and he hand over that to the management. Management overlook all the discrepancies and try to reduce the violation and also took the necessary actions. Internal audit conducted in a bank twice a year.
External Audit
External auditors are the representatives of state bank of Pakistan. State bank assigned them to audit the banks the find out the lapses or discrepancies according to the rules and regulations of state bank of Pakistan. State bank imposed penalty on bank if they found any discrepancies related to banking practices or procedures. External auditor hand over the audit report to state bank of Pakistan and SBP handover the report to the management along with the debit advice in form of penalty and management overlook the discrepancies and take necessary actions. External audit conducted once in a year. Bank Al Falah has a Chartered Accountant Company on his panel who prepare and overview the financial reports of the bank Taseer Hadi & Co. is a chartered firm which is on the panel of Bank Alfalah.
Findings and Suggestion
CUSTOMERS PROBLEMS
It seems that the priority is given to the corporate customers in Bank Al Falah as the individuals from middle class have to remind the management of certain branch to do the needful for them. Bank is earning profit from the customers. Bank should have a proper relationship with corporate as well as individual customers. It is recommended that the management should stress on having satisfactory relationship with individual customers because they can also provide the revenue in term of profit.
EMPLOYEES PROBLEMS
- Insufficient Employees
To compete in the banking industry Bank Al Falah should have enough employees to facilitate the customers, and divide the workload of the existing employees by hiring new people, because the bank cannot use the alternative to reduce the number of customers and loosing the market share.
- Working Hours
Bank Al Falah although providing the customer service in better way but there is a lot of work to do in a routine banking to the employees due to which they work for long time. Management should gave relaxation to the employees by hiring new professionals and reduce the working hours.
- Reduced Communication Barrier:
There should no barriers in bottom-up and top-down communication. Branch Manger should regularly have informal communication between employees.
- Relaxation in Fringe Benefits:
Bank Alfalah should increase the benefits e.g Group Insurance is low as compare to other banks like HBL and personal loan interest rate should be reduced for employee relying with hold assumption of inter bank policies.
- Job Secruity:
Due to world economic factor and recession in economy, Bank Alfalah should provide job security to employees by job rotation.