INTERNSHIP REPORT ON ASKARI COMMERCIAL BANK LIMITED REHAN KHALID Submitted in partial fulfillment of the requirement For the degree of Master of Business Administration At Department of Information Technology and Management Sciences National University of Modern Languages H-9, Islamabad.
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INTERNSHIP REPORT ON
ASKARI COMMERCIAL BANK LIMITED
REHAN KHALID
Submitted in partial fulfillment of the requirement
For the degree of Master of Business Administration
At
Department of Information Technology and Management Sciences
National University of Modern Languages
H-9, Islamabad.
Copy right by Rehan Khalid, 2008
National University of Modern Languages
Faculty of Information Technology and Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and
recommended to the faculty of Management Sciences for acceptance of Final Internship
Report by Roll No 7300 Rehan Khalid, Session (2006 to 2007) Evening, in partial
fulfillment of the requirements for the degree of Master in Business Administration of
National University Of Modern Languages Islamabad.
Dated: ________
Supervisor: ___________________
Observer: _____________________
Head of Department: ________________
DEDICATION
“I dedicate my project efforts to our respectable teachers who taught and
hold our hands on several occasions to complete such complicated and
lengthy project”.
ACKNOWLEDGEMENT
All praises and thanks to Almighty Allah. The Lord and Creator of this
universe by whose power and glory all good things are accomplished. He is also the most
merciful, who best owed on me the potential, ability and an opportunity to work on this
project.
I am grateful to my respected teacher Sir Goolfam who has guided me in each and every
step of this project. Indeed, without his kind guidance I may not be able to even start this
project. May ALLAH give him the reward, which he deserves. I am also grateful to all
those members who are related to ACBL.
EXECUTIVE SUMMERY
The internship report of Askari bank based on to practically experience the Human
Resource Practices studied in our course of MBA, on HRD of Askari Commercial Bank
Ltd., especially to thrash out the training and development practices followed at ACBL.
As, now days, there is a tough competition in the banking sector of Pakistan, so this
forced us to do competitive analysis of the main topic (training & development) to gain a
complete understanding of the concerned HR Practice, and also to give valuable
recommendations to the ACBL, for this I have selected the main competitor of ACBL,
i.e. Bank Alfalah. To proceed with the project we have visited Head Office of ACBL and
Saddar Branch (Rwp) of Bank Alfalah. We have tried to note down all the practices
followed in these banks at best according to our knowledge but as the Head Office and
Training Center of Bank Alfalah is situated in Karachi, so the information gained from
the competitors of ACBL is very brief and concise.
This project is sequenced as firstly with the Introduction Of The organization
and telling the purpose and scope of the study. Including the Hierarchy of the Bank and
the HR- Department. This proceeds with the Findings of the Project, which summarizes
the HRM practices followed in ACBL and a detailed elaboration of Training and
Development practices in ACBL. Next chapter covers the Competitors Analysis followed
by some Recommendations based on the analysis of the project.
TABLE OF CONTENTS
1 .INTRODUCTION
1.1. HISTORY
1.2. MISSION STATEMENT
1.3. SERVICES PROVIDED BY BANK
1.4. AWARDS AND ACHIEVEMENT
1.5. BRANCH NETWORK
2.ORGANIZATIONAL STRUCTURE AND HIERARCHY
2.1 ORGANIZATIONAL STRUCTURE
2.2 HIERARCHY OF HR DEPARTMENT
3.HRM PRACTICES FOLLOWED IN BANK
3.1 PLANNING
3.2.RECRUITEMENT
3.3 SELECTION
3.4 TRAINING AND DEVELOPMENT
3.5 COMPENSATION
3.6 PPPERFORMENCE MANAGEMENT
4.TOPIC OF STUDY DURING INTERNSHIP
4.1. TRAINING
a. HIERARCHY OF TRAINING
b. AREAS OF TRAINING
c. WHO NEED TRAINING
d. TRAINING NEED ASSESSMENT PROCESS
e. TRAINING METHODS
f. EVALUATION OF TRAINING PROGRAMME
4.2.EMPLOYEE DEVELOPMENT
a. ON JOB DEGREE AND CERTIFICATIONS
b. ASSESMENT CENTRES
c. PERFORMANCE APPRAISAL
d. EMPLOYEE ASSISTANCE PROGRAME
5.ANALYSIS OF FINDINGS
a. COMPETITORS ANALYSIS
6.RECRUITEMENT AND SELECTION PROCESS
6.1.RECRUITEMENT
6.1(a) INTERNAL SOURCES
6.1(b) EXTERNAL SOURCES
6.2 SELECTION
6.2(a) INTERVIEW
6.2(b) ORIENTATION
6.2(c) CONFIRMATION
7.SWOT ANALYSIS
8.CONCLUSION
9.RECOMMENDATIONS
10.BIBLIOGRAPHY
1. INTRODUCTION
1.1 Brief History
Askari Commercial Bank Ltd. (ACBL) was Incorporated in Pakistan on October 09,1991,
ACBL commenced its operations in April 1992, as a public limited company, and has
since expanded into a nation-wide presence of more than 50 branches, handled by the
human capital of more than 1600 employees and has lowest turnover in Pakistani
Banking Sector.
The Bank is listed on the Karachi, Lahore & Islamabad stock exchanges and the initial
public offering was over subscribed by 16 times.
ACBL is principally engaged in the business of banking as defined in the Banking
Companies Ordinance, 1962.As at December 31, 2002, the Bank had total assets of PKR
70.313 billion, with over 250,000 banking customers.
ACBL has a Correspondent Bank Network in more than 95 countries with about 167
banks. ACBL 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 us to
evolve and outward-looking strategy in terms of our market emphasis. As a result, ACBL
developed a geographically diversified assets base instead of a concentration and heavy
reliance on business in the major commercial centers of Karachi and Lahore, where most
other banks have their operational Head offices.
1.2 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 organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stakeholders, and contributing to society.
1.3 Services Provided By ACBL
Askari Mortgage Finance.
Askari Business Finance.
Askari Personal Finance.
Askari Travelers Cheques.
Askari Master Card.
Askari Bank's Cash Management Service.
Askari Car Leasing.
Touch n Pay (Utility Bills Payment).
1.4 Awards and Achievements
ACBL has recognition of achieving the following firsts in Pakistani banking;
First Pakistani Bank to offer on-line real-time banking on a countrywide basis.
First Bank with a nation-wide ATM network.
First Bank to offer Internet Banking services.
First Bank to offer e-Commerce solutions.
Different institutions and magazines have also awarded them at different occasions, some
are;
“The Best Bank in Pakistan” by the Global Finance magazine for the years 2001 & 2002.
“Best Consumer Internet Bank” award for Pakistan by Global Finance for the year 2000.
“Best Presented Annual Accounts” awards for 2000 and 2001 from the Institute of
Chartered Accountants of Pakistan and the Institute of Cost and Management Accounts
of Pakistan,
Prizes from the South Asian Federation of Accountants for “The best Presented Annual
Accounts” for the financial sector, in the SAARC region.
1.5 Branch Network
The system of Regional and Area offices has been introduced since 1999 for effective
supervision and control of branches. The Bank's branch network has been divided into 4
regions:
North Region Central Region.
South Region West Region.
Under this system the Regional heads have the primary responsibility for business
development, profitability, productivity, operational efficiency and credit quality.
Words of President and Chief Executive - Kalim-ur-Rehman;
“Assets make things possible,
People Make things happen
2.1 ORGANIZATIONAL STRUCTURE OF ASKARI BANK
President
Commercial & Retail Banking
Chief
Regional Business
Chief Regional Marketing Managers Branch Managers
Corporate Investment
Banking Group Chief
Corporate Head North&
Corporate Head South
Special Assets Management
Chief
H.R.M.Group Chief
Regional GM H.R.M.
Operations Group Chief
Risk Management Group Chief
Audit Inspection Group Chief
Regional Operations Chief
Regional Compliance
Chief
Operations Department of
the Region
Branch Operations Manager
Branch Credit Officer
Credit Department of Region
Regional Risk Management
Chief
Area Audit Chiefs
2.2 HIERARCHY OF HR DEPARTEMENT
Currently there are 17 employees working in HR-Department of ACBL. These
are positioned on the basis of following hierarchy.
Reporting
Operating Grade 1Operating Grade 1
Junior OfficerDivisional Officer
President
HR Head
Assistant Vice President - HR
Operating Grade 1
Operating Grade 2
Operating Grade 3
Junior Officers
3. HRM PRACTICES FOLLOWED IN ACBL
This section includes a summary of the HRM practices followed in ACBL and a detailed
study of Training and Development.
The most important Division at the Head Office is responsible for human resource
management, including planning, recruitment, staffing, training & development,
compensation, performance management, employee relation and evaluation. The
Division also handles matters relating to administration that proves an integrative linkage
(34) between HRD and Administration.
Different practices are briefly summarized as follows;
3.1 Planning: -
HR Department is responsible for an effective HR planning (16) regarding demand and
supply of employees and forecasting for these practices.
Forecasting Employee Demand: -
Employee demand at ACBL is derived from following factors;
Internal Growth:-
i. Opening a New Branch.
ii. Setting up New Technology.
iii. Changes in Customer Demand.
iv. New Services.
Forecasting Employee Supply: -
HRD at ACBL ensures the employee supply on following basis;
Transfers.
ACBL transfers its employees from one branch to other branch with in the
same region, especially whenever a new branch is opened.
Internal Movements .
Internal movements, which include promotions and rightsizing, are a part
of supply.
Rotations .
Job rotations are also done with in the departments from time to time to
decrease the monotony and to make up interest in the job. It is most
common for On Job Training (33) of MTOs.
Overtime.
To compensate the workload, most of the employees voluntarily work
over-time at their jobs. As the employees are not forced to work over-time
so they are not paid for this overtime. Sometime the supervisors also ask
their subordinates to work over-time.
Apart from this, there are night shifts working in Electronic Technology
Department (ETD) at ACBL. It is done whenever there is a workload
regarding the making of ATM and Credit cards etc.
Temporary / Contractual .
Temporary and Contractual employees also work in ACBL normally in
ETD who work as Hardware Technicians and Software Engineers etc.
The same are some times contracted from different Software Houses.
Other than this all the employee at ACBL is not permanent, most of them
are at contract (employment at will).
Employee Shortage: -
As ACBL has currently a growth strategy and for that ACBL is opening five
to six branches every year at national level. This makes an employee shortage for
ACBL, but ACBL covers it by hiring in following two categories.
Management Trainee Officers. (Recruited once in a year)
Junior Officers. (Recruited according to the need)
3.2 Recruitment: -
ACBL recruits both fresh and experienced persons on regular basis to support its growth
strategy. A part from this, ACBL recruits in both categories (MTOs & JO) as discussed
above. For this ACBL uses following internal and external recruitment sources;
Newspapers.
ACBL advertises the vacancies in popular newspapers, which can either
be in English or Urdu papers according the job and situation.
Website.
ACBL has its own website, where it advertises the vacancies. It also has
electronic data bank where the interested persons apply for the jobs.
Direct Applicants .
Fresh graduates keep on submitting their CVs to the HR Department from
time to time. HRD selects the effective persons for interview and tests
whenever a job is vacant.
3.3 Selection:
After the recruitment the selection of most reliable and efficient persons is done at
ACBL under the supervision of HR personals. The selection process at ACBL is
sequenced as follows;
I. Entry Level Test:
After recruitment all the candidates have to give an entry-level test. Test is
comprised of, General Knowledge, English, Math, Accounting and other subjects
which might vary according to the caliber of the job. Those
who clear the test are proposed to proceed further for the selection process and the
remaining are short-listed.
II. First Interview:
The selected candidates have to take the 1st interview, which is conducted by a
team of Subject Matter Experts (37) including HR officials. The candidates are
again short listed by the interviewers.
III. Second Interview:
Now the Vice President - Human Resource, again interviews the next selected
lot.
IV. Third Interview:
Finally, Senior Vice President of HR interviews the successful candidates.
V. Medical Test:
The selected candidates submit their medical reports of the required medical
tests. If a candidate is medically unfit, he or she is given a recovery period of
3 – 4 months.
3.4 Training and Development: -
ACBL also conducts the training of the selected candidates, which is
conducted by the Training Wing in alliance with HR and other related departments.
The high leverage training (9) is done in two main areas;