Chapter No 1

Summary of Chapter No1

In this chapter, we explained the brief introduction of Askari Bank Ltd,

its background, its mission statement, its Organogram and decision making
structure of the organization. This will give you the preliminary information
about the organization in order to better understand the functioning of HRM
department. .

In this chapter we explained the following.

 Background of the Organization.

 Mission statement of the organization.
 Awards and achievement.
 Services of the Askari Bank Ltd.
 Performance and profit history.
 Organogram.
 Decisions making in the organization.

1.1 Introduction and background of the Organization

Incorporated in Pakistan on October 9, 1991, Askari Bank Ltd

commenced its operations in April 1992, as a Public Limited Company, and
has since expanded into a nation-wide presence of 49 branches, supported by

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a network of online ATMs. The Bank is listed on Karachi, Lahore &
Islamabad Stock Exchanges and the initial public offering was over-
subscribed 16 times.

While capturing the largest market share amongst the new banks,
Askari Bank Ltd has provided good value to its shareholders. Their share
price has remained approximately 12% higher than the average share price of
quoted banks during the last four years.

Askari Bank Ltd 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 Pak Rupees 70.313 billion,
with over 250,000 banking customers.

Askari Bank is the only bank with its operational Head Office in twin
cities of Rawalpindi & Islamabad, because Askari Bank Ltd is directly operated
by Pak Army, which has relatively limited opportunities as compared to Karachi
and Lahore. This created its own challenges and opportunities, and forced them
to evolve an outward-looking strategy in terms of our market emphasis. As a
result, they developed a geographically diversified assets base instead of a
concentration and heavy reliance on business in major commercial centers of
Karachi and Lahore, where most other banks have their operational Head
Offices.

1.2 Mission statement of the Askari Bank Ltd

Leading private sector bank in Pakistan with an international presence,

delivering quality services through innovative technology and effective human
resource management in a modern and progressive organization culture of

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meritocracy, maintaining high ethical and professional standards, while
providing enhanced value to all our stake-holders, and contributing to society.

1.3 Awards and achievement of the Askari Bank Ltd

Over the years, Askari Bank Ltd have received several awards for
the quality of their banking services to individuals and businesses.

They have been declared "The Best Bank in Pakistan" by Global

Finance magazine for the years 2001 & 2002. Also, they have been given the
"Best Consumer Internet Bank" award for Pakistan by the same magazine for
the year 2002. In 1994, 1996 and 1997, we received Euro money and Asia
money awards.

Askari Bank Ltd has an A 1 + rating for short-term obligations

- the highest possible, for the category, while the long-term rating stands at
AA. Askari Bank Ltd won the prestigious "Best Presented Annual
Accounts" awards for 2000 and 2001 from the Institute of Chartered
Accountants of Pakistan and the Institute of Cost and Management
Accountants of Pakistan, for the services sector. For the past four years, they
have received prizes from South Asian Federation of Accountants for "The
Best Presented Annual Accounts" for financial sector, in SAARC region.

3
 1.4 Services of the Askari Bank Ltd

Over the years, Askari Bank Ltd has proved its strength as a leading
banking sector entity, by achieving the following firsts in Pakistani banking.

i) First Pakistani Bank to offer on-line real-time banking on countrywide

basis.

ii) First Bank with a nation-wide ATM network.

iii) First Bank to offer Internet Banking services.

iv) First Bank to offer E-Commerce solutions.

1.5 Performance history of the Askari Bank Ltd

Business Volumes

2002(Rupees in 2001(Rupees in 2000(Rupees in

'000) '000) '000)
ASSETS 70,313073 50,980,392 38,454,262
LIABILITIES 66,140,409 48,401,674 36,299,707
NET ASSETS 4,172,664 2,578,718 2,154,555

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HR 1.6 Organogram. HR
HR HR
OPERATION Development Training Administration
Operations

Recruitment Job Technical

Process H.R.D.
Specification
Head of HRD.
S.V.P. Non
Selection Job Technical
Process Description
Personality
Orientation Job Analysis Developme
nt

Socialization Motivation

Appraisal Employee
System evaluation

Promotion

Reward

Staff Care
Policy

Disciplinary
Actions
5
HR
Communication
6
 Chapter No: 1
1.7 Decision Making Structure of the organization

Decision making in the organization is both decentralized and

centralized.

Centralized Decision Making

Some of the decisions in Askari Bank Ltd is centralized with regarding

recruitment and selection process.

Decentralized Decision Making

Some decisions in Askari Bank Ltd are decentralized regarding employee

evaluation process and career development process.

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 Chapter No: 2

Summary of Chapter No: 2

In this chapter we’ve covered Recruitment, Selection,

Orientation, Socialization, Appraisal, Motivation and Information System.

 How Recruitments process operate in the Askari Bank Ltd.

 How Selection process operate in the Askari Bank Ltd.

 How Orientation process operate in the Askari Bank Ltd.

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  How Socialization process operate in the Askari Bank Ltd.

 How Appraisal system operate in the Askari Bank Ltd.

 How equal opportunities operate in the Askari Bank Ltd

 How motivation operates in the Askari Bank Ltd

 How HR information system operate in the Askari Bank Ltd

Chapter No: 2

2.1 Recruitments process in the Askari Bank Ltd.

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 Askari Bank Ltd has a well-developed recruiting process.
The recruiting process operates in following way.

Job Requisition
(Replacement or new
position)

Checking needs for

replacement –is engagement
authorized.
Obtained authority or
adopt alternative (such
as over time,
reorganization)
Does a job description
and personnel
specification exist?
YES NO

Review &
Analysis Job
updates

Are the Terms and

conditions of
employment agreed?
YES NO
Agree terms and
conditions
Is there a suitable supply of
internal candidates?

Place Evaluate
internal alternative
Adv. Media

Preparation and
publication of
information
Determine Selection
NO
Method
YES

Select the candidates

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 YES NO

Chapter No: 2
Advertising for the applicants
in the leading news papers

2.2 Selection process operates in the Askari Bank Ltd.

The collection of the
application

Selection process of Askari Bank Ltd is well developed. The selection process
Short-listing the applicants
is described as.

Testing the applicants

Short-listing the applicants in

the test

Interviewing the applicants

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Selection of the candidates

 Chapter No: 2

2.3 Orientation process.

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 When a candidate is selected, then the bank performs orientation
process for new employees. Askari Bank Ltd emphasizes upon orientation
process of the employee, because it provides the brief introduction of
organization. The president or Vice President usually takes the orientation
process. In absence of the two heads the Video Tapes of President and Vice
president about the orientation of the bank is shown to the candidates.

2.4 Socialization process.

Askari Bank Ltd implements the process of socialization, when a

new employee comes. They get chance to be socialized with the environment of
the company. For this purposes the employees visits all the departments of the
bank and also takes a brief introduction of each department, this gives them a
good overview of organization. HRM department is performing these duties
with the coordination of the relevant department.

2.5 Appraisal system of the employees.

Appraisal system of the Askari Bank Ltd is well developed and fair. The
following process is take place in the Askari Bank Ltd.

Jointly
Identificati Assessment
Assessment agreed Follow up
on of the report by
Interview Concrete Action
Criteria for Manager
Conclusion
assessment

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Feed back
14
 PERFORMANCE APPRAISAL FORM
(ANNUAL COMPLETION REPORT)

Some of the fields are not given in the form, as they were cut out when
officer cut down the confidential portion of the form

NAME __________________ GRADE/DESIGN_________ ___________ STAFF NO______

PAYSACLE______________BASIC PAY AS ON 31-12-2000______________________
DATE OF JOINING______________DATE OF LAST PROMOTION_________________
DATE OF BIRTH_________________________DOMICILE_____________________
ACADEMIC QUALIFICATION_________PROFESSIONAL QUALIFICATION___________
PAST RECORD, ADVERSE REPORT/DISCIPLINARY ACTION (IF ANY) DURING LAST THREE
YEARS I.E. 1998, 1999, 2000_______________________________________________
___________________________________________________________________
INCREMENT GRANTED W.E.F. 01-01-1998 01-01-1999 01-01-2000
ANNUAL ________ ________ ________
SPECIAL ________ ________ ________
BRIEF DESCRIPTION PF THE POSITION HELD DURING ENTIRE CAREER IN BANKING

DESIGNATION/ NATURE OF
PERIOD PLACE OF POSITION POSITION HELD ASSIGNMENT

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 1. Personal appearance and manners

2. (i) Is he capable of drafting letters and memoranda?

(ii) Can he express himself fluently and coherently

in English and Urdu?

(iii) Besides English which other foreign language

can he speak or write with ease?

(iv) Is he capable of communicating effectively

with Pakistani or foreign corporate mangers
and other important customers and handling
their problems with confidence?

3. (i) Does he possesses adequate initiative or is he

a routinist?

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(ii) Is he a decision maker or does he tend
to procrastinate and refer to his superiors
matters falling within his powers, with
the idea of shifting responsibility?

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 Brief highlights of the initiatives taken and achievements actually made
by the officer/executive in the following areas in the branch/regional office/and
division/s and department/s etc of the central office/head office under his
jurisdiction, either on his own volition or in the light of guidelines issued by
bank’s management on the subject:

(i) Improvement in genuine profitability of

bank’s branch/s regional office/s under
his jurisdiction

(ii) Elimination of leakages in income and

control on expenditure and elimination
of waste of institutional resources.

(iii) Improvement in the quality of advances

and guarantees.

(iv) Improvement in bank system of work

control and audit and making them efficient
and cost effective.

(iv) Prevention of fraud and forgeries.

(vi) Identification and ouster of officials and staff

from the bank who are involve in criminal
acts, enjoy bad reputation or are not discharging

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 their responsibilities efficiently or honestly.

(vii) Contribution made towards elimination of

excessive staffing levels and improvement of
general productivity of officers and staff under his
jurisdictions

(viii) Ability displayed in providing effective

leadership and maintaining discipline among officers
and staff working under his jurisdiction.

(ix) Promotion of adequate growth of bank’s

genuine deposits particularly from private sector and
elimination of window-dressing.

(xi) Recovery of stuck-up advances.

(xii) Achievement of mandatory targets

(xiii) Timely reconciliation of inter branch

accounts

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(xiv) Improvement in the quality of service
provided to bank’s customers and the general
public and building up of institution’s image.

(xv) Improvement in general look and standard of

tidiness of offices both within and outside.

Signature of reporting officer: ___________

Date: _________

FINAL EVALUATION

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 Evaluation of personal life and
character qualities:

(i) General reputation

(ii) Style of living and social life

(iii) Moral and professional integrity

(iv) Leadership qualities and administrative

capability.

2. Effectiveness in follow-up and implementation:

His effectiveness as a leader to have Bank’s policies and

programs implemented expeditiously.

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3. (Field is cut off)

His perception of current and future problems and prospects

in respect of branch/regional office/division/department of the
central office /head office falling under his jurisdiction or of
the bank as a whole and his capability to develop adequate
response in time.

4. Assessment of his potential as a professional banker and as

an executive and recommendations about his future
assignment/s where he will make maximum contribution to
the building of building of bank image and its growth and
profitability.

5. OVERALL EVALUATION OF THE PERFORMANCE

Assessment of his overall performance so far

(Please evaluate performance under following mentioned

categories.

MARKS

1. Outstanding 4

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2. Very Good 3
3. Good 2
4. Average 1
5. Below Average 0

Signature of Evaluating officer: _____________

Date: _____________

2.6 Equal Employment Opportunity

Askari Bank Ltd is following equal employment opportunity. In

case of hiring employees there is no gender discrimination. Males and females
are hired, equal opportunity for them for job. In some cases women related
matters are solved preferable like canceling transfer way from home Bank is not

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following any quota system while hiring the candidates. In the bank handicap
form the figure of 2%-3% of the employees.

2.7 Human Resource Information System

Askari Bank Ltd is maintaining Human Resource information

system at all of its regional offices and head office. The information system is
computerized and all branches are interconnected with each other.

2.8 MOTIVATION IN EMPLOYEES

At Askari Bank Ltd the employees have a motivation factor that is

dominant over other factors. They are motivated through different ways like
 Fair job appraisal system.
 Fair reward system & satisfaction of the employees.
 Good environment for working conditions.
 Job place is according to the convenience of employee.
 After job starting they don’t transfer their employees.

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 2.9Reward system

BEST EMPLOYEE OF YEAR

Every year on the basis of performance and ACR best employee of the
year is selected in all the branches, regional offices, and head office. The
selected employee is given shield and presented as the model for the rest of the
employees.

GOOD PERFORMANCE SHIELD

Each year when an employee shows good performance in his filed of

performance his efforts are recognized by issues him shield. This shield is for
all of those who show good performance.

CASH REWARDS

In cases where an employee shows outstanding performance in difficult

situations he is rewarded with cash prizes. The amount of cash prizes is not
fixed.

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BENEFITS

Askari Bank Ltd is not only offering the benefits prescribed by

government but also provides additional benefits. Benefits that the employees of
the banks are getting are as under:

PENSION

Pension is the right of every regular employee of the bank. The amount
of pension is based on the government policies. Which amount or percentage
government fixes bank pays it to its ex-employees.

GRATUITY

At the time of retirement bank pays a lump-sum amount to retired

employee. The amount of gratuity depends on the period of service of the
employee and basic pay.

GENERAL PROVIDENT FUND

In G.P fund employees and bank shares equally and at the time of
separation employee not only get the amount but also receives interest on it.

LEAVES WITH PAY

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 If an employee wants leave for long time i.e. over 6 week he can gets
amount equivalent to his per month salary.

OTHER BENEFITS

• Benevolent fund
• Marriage grant
• Burial grant
• Medical allowance (amount spent on treatment)
• House rent allowance (95% of basic pay)

Pension, gratuity, and general provident funds are being provided under
government laws while other benefits are being provided under bank rules.
Some benefits are being provided once in the job like marriage grant.

2.10 Health and safety

Askari Bank is a servicing organization and is maintaing “OHS”. Bank

maintains the safety by appointing security staff at each office of the bank. Bank
has the policy to compensate the employees who died or face disability during
the job. They provide medical facility to the employees. And they refer their
employees to their entitled hospitals.

2.11Employee Retention

Bank has no very well organized employee retention policy. And they
have employee turn over of 6% per year.

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 Chapter No 3

Summary of the chapter

In this chapter a brief introduction of the Askari Bank Ltd `s Job

specification, Job Description, Job analysis and career development.

• Job specification
• Job Description
• Job analysis
• Career development

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3.1 job Analysis

Following steps should be taken by the Askari Bank Ltd.

Step1: Obtain Documentary information such as procedure manuals and written

instruction.

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Step 2:Ask about more general aspect such as the job purposes, the main
activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.

3.2 job specification

Job specification

Askari bank also has well developed criteria for each job in term of the
job specification. In all the area of the jobs the pre- requisite for the job are
defined for example:
• Qualification required for a job
• Skill required for a job
• Experience required for a job

3.3 job description

Job Description
Human resource Division analyze each job and the its required outcomes.
Job analysis is done by analyzing the past experience and emerging trends.

Askari bank holds documents about terms, duties, responsibilities, and

specifications about each job.

3.4 Career development

Askari Bank currently has no prominent policy for career development of

the employees. The bank is following the policy that was set by government

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long period ago. Every employee knows that he will be promoted after a fixed
period with fixed amount of increment. Employees didn’t look for opportunities
around them and in result bank didn’t care to provide option for career
development. Career development at the bank can be said as the dumb terminal
at both ends.

Chapter NO 4

Summary of the chapter NO 4

• COMMUNICATION STYLE

• INFORMAL COMMUNICATION STYLE

• DISCIPLINE MANAGEMENT

• HOW HRD MANAGE UNION

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Communication in the Askari Bank Ltd

Askari Bank Ltd is following governance rules prescribed by State

Bank as well as of the bank’s itself. In the following lines we’ll discuss the
governance pattern of the bank.

4.1 COMMUNICATION STYLE

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 Askari Bank Ltd has the pattern of downward and upward
communication. Based on the organizational structure of the bank
communication required each level to pass on. But an employee can approach to
top management as well.

The bank communication infrastructure is not so good. There is very less

use of notice boards. E-mail culture is not fully utilized there, though facility is
provided to the employees. Major channel of communication are formal letters
and telephone. Memos are also an effective tool of communication.

4.2 INFORMAL COMMUNICATION STYLE

When we visited Askari Bank Ltd we observed that official language of

bank is English while employees were communicating with each other in Urdu.
Similarly the style that should be exists in the organization was not in the bank.
We finally observed that informal communication style is according to the
policy of bank.

4.3 DISCIPLINE MANAGEMENT

While meeting with Mr. Aamir he told us that bank always take care of
employee rights but on the other hand also keep discipline because in the past
employee took undue benefit of the management leniency.

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DISCIPLINE AT BANK

In the bank if an employee alleged to be guilty then the management

takes following proceedings:

EXPLANATION LETTER

Alleged employee receives an explanation letter in which he is advised to

clear the allegations against him.

ENQUIRY

If employee fails to clear allegations against him then an enquiry

commission looks into the matter.

PUNISHMENT (IF ALLEGATION IS PROVED)

If allegation becomes approved then anyone or more of the following

punishes the guilty:

 No Increments.
 Suspension.

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  Degrade by one or two levels.
 Dismissed from job.

APPEAL RIGHT FROM EMPLOYEE

An employee can appeal against the grievance. For this purpose

government has established two institutes where the appeals of the employees
are entertained against the decision of management.

4.4 HOW HRD MANAGE UNION

There is no union in Askari Bank Ltd. So they don’t have to deal with
the problem of union.

Chapter No 5

Suggestions and recommendations.

Conclusion.

Bibliography.

35
36
 Conclusion

Bank’s HRM department is very well established & is working very well
and employees are satisfied with the working and planning from HR
department. This clearly shows that the management is well aware of the
importance of managing Human Resource of Askari Bank Ltd. They’re having
certain plans for employee’s development as well as organizational
development. Bank has a turnover of 6% per annum. And they are having no
well defined structure of employee retention.

37
Suggestions and Recommendations

1-SEPARATION OF HUMAN RESOURCE DIVISION FROM

38
 ADMINISTRATION DIVISION
First of all it is needed that Human Resource Department should be
separated from Administration Department to make the Human Resource
Division specialized and full functioned department.

2- Appraisal can be taken from the customers

Banking is the business that is directly related to general public and an

employee can be judged by the appraisal from customer. This practice will
increase the accuracy of performance check as well will improve the behavior
of employees with general public.

3- Employee retention
Employee retention should be followed because skilled and experienced
employees can give their maximum out-put. To employee retention bank can
give extra advantages to its employees which offers its competitors.

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Bibliography:

HRM Manager

Mr. Hbib ur rehman

http://www.ubl.com.pk

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