organizational behaviour of Bank AlFalah

Name of OrganizationName of Organization

Bank Alfalah LimitedBank Alfalah Limited

Vision:To be the premier organizations operating locally & internationally that provides the complete range of financial services to all segments under one roof

Mission:To develop & deliver the most innovative products, manage customer experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

Historical OverviewHistorical OverviewBank Alfalah Limited was  incorporated  on  June 21st, 1997 as a public limited company under the Companies Ordinance 1984. Its  banking  operations commenced   from  November 1st ,1997. The bank is engaged in  commercial  banking  and  related services as  defined  in the Banking companies ordinance, 1962. The Bank is currently operating through 104 branches in 36 cities, with the registered office at B.A.Building, I.I.Chundrigar, Karachi.

Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place.

Hierarchy

President

Chief Operating Office

Head of County Operations

Country RiskManger

Executive VicePresident

Executive VicePresident

ChartedAccountant

InformationDepartment

CorporateHeads

BranchManager

BranchManager

Mr. Mohammad Saleem AkhtarChief  Executive Officer

Mr. Abdulla Khalil Al Mutawa

Mr.Khalid Mana Saeed Al Otaiba

Mr. Abdulla Nasser Hawalileel Al-Mansoori

Mr. Ikram Ul-Majeed Sehgal

Mr. Nadeem Iqbal Sheikh

Board of DirectorsBoard of Directors

Following the privatization in July 1997, Habib Credit and Exchange Bank assumed the new identity of Bank Alfalah on February 25, 1998. It is now Abu Dhabi based bank as the family of Sheikh Nahayan purchased 70% of its shares and 30% remained with Habib Bank on behalf of Government of Pakistan. It has 142 branches in Pakistan.

About the BankAbout the Bank

Planning

• Defining organization’s goals and objectives.• Establishing overall strategies for achieving

those goals.• Developing a comprehensive set of plans to

integrate and coordinate organizational work.– Types of Planning

•Bank Al-Falah use both formal and informal types of planning. Informal

Formal

 Goals / Objectives• Financial strength and Profitability by making

profitable advances• Customer satisfaction by providing higher

quality of services at an affordable cost•Growth by expanding branch network and

deposit base•Short-term Objectives

• Profitability•Long-term Objectives

• Profitability• To optimize the use of resources

Process of planning

MissionStrategies

PlansProgramsPoliciesRules

Budget

ORGANIZING

Organizing means how employees organize the whole work?– Purposes of Organizing

• Divide work to be done into specific jobs and departments in Bank Al-Falah.

• Assign tasks and responsibilities associated with individual jobs in Bank Al-Falah.

• Establishes relationships among individuals, groups and departments in Bank Al-Falah.

• Allocates and deploys organizational resources in Bank Al-Falah.

Management

Top Level of Management

Important and overall decisions of the bank are made by top level of

management. For example: Chairman Regional Manager

Regional manager makes decisions at regional level.

Branch Manager

Branch manager makes decisions at branch level.

Environment

1.Internal environment (employee, management, shareholders)2.External environmentTask environment (customer, competitor, pressure groups

local govt) General environment (Technological, economical, social)

PERFORMANCE OF BANK ALFALAH LIMITED

 Any financial institution’s performance is directly impacted by the influence of various external factors. The positive and dynamic interplay of economic, social and political factors translated into higher performance for the bank. In comparison with the governmental policies and institutional regulations, the bank is consistently having a great success. Now in tenth year of operations Bank Alfalah is on the path of strategic excellence. The smooth working of Islamic Banking Division according to Islamic Sharia is a great success. The expansion of branch network shows its growth in the tough competition

  HUMAN RESOURCE

MANAGEMENT HRM means to put the right person, for

the right job, at the right time and at the right place, so HRM deals with the fair job description as a whole in Bank Al-Falah.

They have in place the state-of-the-art Training and Development Center both in Lahore and Karachi for equipping the personnel of the Bank Alfalah with tools that help carve a brighter future.

Human Resource Department is responsible

PlanningRecruitment

SelectionOrientation

TrainingPerformance appraisal

TransfersMotivation

The flow of information in Bank Al-Falah.• Direction of communication

Bank Al-Falah communication can flow downward, upward, laterally, or diagonally.

• Down-ward Communication Any communication that flows downward

from a C.E.O to employees is downward communication.

• Up-ward Communication Any communication that flows upward

from employees to C.E.O.• Lateral Communication Communication that takes place among

employees on the same level is called lateral communication.

• Diagonal Communication Communication that cuts across both

work areas and organizational levels.

Communication Model

• Message Any type of message of Executive Incharge

(E.I) to be conveyed.• Encoding Converting a message into symbols.• Channel The medium a message travels along.• Decoding Retranslating an Executive Incharge (E.I)

message.

• Receiver The seven elements involved in transferring

meaning from Executive In charge (E.I) to another.

• Feed back Any disturbance that interfere with the

transmission, receipts or feed back of a message.

• Formal & Informal communication Discussion between C.E.O and Executive In

charge is Formal communication.• Discussion between employees in Bank Al-

Falah is Informal communication

LEADERSHIP

• The leader is needed by the every field & Organization, as well as the Bank Al-Falah has its leader in the form of High qualified & skilled Managers, which are working hardly to put the bank at the peak level as well as achieving the organization’s pre-selected goals.

• According to the leadership theory bank Al-Falah leaders are formal leader.

• According to the types of leader Bank Al-Falah leaders are Democratic leaders.

• Democratic leader• The leaders, Bank Al-Falah have, are the

types of “Democratic”. Because the major portion of bank is ‘De-centralized’, that’s why the each leader has the complete power of decision making, but they are working “Collaboratively” in whole organization with each other. All leaders of bank are involved in decision making, delegating their authorities to their higher qualified employees, encouraged the participation of their employees in work and gives them opportunities of coaching in well manners.  

All the work is done in friendly atmosphere in the Bank Al-

Falah

ETHICS

• APPROACHES TO ETHICS • .Utilitarianism Approach What is good for the most number of people

states the utilitarianism approach. • Individualism Approach• Any Ethical decision that can be for self interest

until or unless it is not harmful for anyone else. • Right Approach

In right approach, basic fundamental rights of human being are protected until or unless yours decision are ethical

• Justice Approach In justice approach we treat

everyone equally, fairly & consistently  

Justice Approach is being adopted in

Bank Alfalah

 PERFORMANCE

APPRAISAL• Bank Alfalah’s performance appraisal system

is based on a combination of “MBO” and enabling factors’ approaches, under which 50% weight age is assigned to performance goals discussed and laid out in the beginning of the year another 50% weight age is assigned to enabling personality factors, which are clarified to all employees by their supervising officers at the start of each year.

• OBJECTIVES OF PERFORMANCE APPRAISAL:

 FACTORS WHICH

EVALUATE PERFORMANCE

APPRAISAL

Sincerity with jobGood performance

Good customer relationGood decision making

Good relation with colleague and boss

Level of commitmentPunctualityHonesty

Appraisals Approaches Adopted by Bank Alfalah

• There are two types of appraisal approaches adopted by bank Alfalah; traditional approach and modern approach.

• Traditional Approach: This approach of appraisal is about the overall organization, on the basis of their past performance. In Bank Alfalah, it is reviewed at branch level. Each branch is responsible to show its performance in accordance to the set goals in a positive direction.

• Modern Approach: In this method the employees are allocated certain goals or targets to be fulfilled in the given period, which

• show the overall performance of each employee e.g. they are asked to collect the deposit of certain amount in the prescribed period. Bank Alfalah has developed their own performance management process which is performed biannually in the months of June and December. It is done with the consent of both manager and subordinate. Manager conducts thirty minutes interview with his subordinate to discuss about his projects and rates him according to appraisal form established at the start of the year. Employees are aware of these evaluation criteria at the start of the year so that they can improve performance according to criteria set by the bank.

Conflict handling

• In Bank Al-Falah have very low chances of conflict because all the employees are cooperative and everyone do his work like manager manage whole the organization, operational manager all the operation, casher manage the cash receipt and payment, and business development officer etc

• If conflict arise in employees then manager remove the conflict between them