Organizational Behavior“Term Report on management functions of Allied bank”

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“Term Report on management functions of Allied bank”An Interview of MR Irfan Abbasi (operational manager at Allied bank)

1/31/2015Organizational BehaviorAmbreen ZulfiqarBBA IV (B)Submitted To: Saeed Ahmed Sheikh

Company profile

Allied Bank is a commercial bank in Pakistan. Allied Bank, with its registered Offices in

Karachi and Lahore, is one of the largest banks within the country with over 900 branches,

connected to an online network. It was the first Muslim bank established in Pakistan before

independence (1942) with the name of Australasia Bank. It was named as Allied Bank of

Pakistan from Australasia Bank Limited in 1974, and Sarhad Bank Ltd, Lahore Commercial

Bank Ltd and Pak Bank Ltd were also merged in it.

It was established on December 3, 1942 as Australasia Bank at Lahore. At that time the chairman

was Kh. Bashir Baksh. The bank's history is divided into many phases. During 25 years of united

Pakistan the bank advanced forward in all areas of its activities. In 1971 East Pakistan was

separated and Australasia Bank lost its 50 branches and a lot of capital as well. In 1974 all the

Banks were nationalized including Australasia Bank. The small provincial Banks were merged

into Australasia Bank. On 1 July 1974 the new entity was renamed as ABL of Pakistan Limited.

Then it started its operations as Public sector financial institution.

Different Phases of the Bank Are as Follows:

The Pre-Independence period (1942-47)

Australasia bank in private sector (1947-74)

Allied bank: Public sector years (1974-91)

Privatization (1991-2004)

A new beginning (2005 to up to date)

Company Overall Mission and Vision

Vision

To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers.

Mission

To provide value added services to our customers To provide high tech innovative solutions to meet customers’ requirements To create sustainable value through growth, efficiency and diversity for all stakeholders To provide a challenging work environment and reward dedicated team members

according to their abilities and performance

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To play a proactive role in contributing towards the society

CORE VALUES

• Integrity

• Excellence in Service

• High Performance

• Innovation and Growth

Organizational structure of company

Board of directors:

Mohammad Naeem Mukhtar

Sheikh Mukhtar Ahmad

Muhammad Waseem Mukhtar

Abdul Aziz Khan

MubashirA. Akhtar

Pervaiz Iqbal Butt

A.Akbar Sharifzada

Tariq Mahmood

Audit committee of board:

Mubashir A.Akhtar (Chairman)

Pervaiz Iqbal Butt A. Akbar Sharifzada

Human resource and remuneration committee

Mubashir A. Akhtar (Chairman)

Pervaiz Iqbal Butt A. Akbar Sharifzada

Company secretary

M. Raffat

Auditors

Ernst & Young Ford Rhodes Sidat Hyder (Chartered Accountants)Chief Executive Officer

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Mohammad Naeem Mukhtar

Chairman / Non Executive Sponsor Director

Sheikh Mukhtar Ahmad

Non Executive Sponsor Director

Muhammad Waseem Mukhtar

Non Executive Sponsor Director

Abdul Aziz Khan

Independent Director

Mubashir A. Akhtar

Independent Director

Pervaiz Iqbal Butt

Independent Director

A. Akbar Sharifzada

Government Nominee Director

Specifically in Allied bank in Sukkur district Operational manager is Mr. Azizulah.

Abdul malik

Regional manager

Head office of Allied bank is in Lahore . Allied bank Sukkur has to report Allied bank Karachi and then Allied bank Karachi will report to Lahore. There is a kind of hierarchy system Sukkur Branch of Allied can’t report directly to the Lahore Head office of Allied Bank.

There are twenty two branches of an Allied bank in Sukkur district most famous are Kamber, Larkana, Shahdadkot. Others are also scattered from Moro to Nawabshah.

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Reporting structures and hierarchical levels:

Hierarchical levels

Upper-Level ManagersUpper-level managers are the top executives in company. Upper-level managers usually include chief executive officers, chief financial officers and other top leaders these are responsible for developing company’s vision. In Allied bank Mohammad Naeem Mukhtar is upper level manager because he also chief executive officer of Allied bank.

Mid-Level Managers

Mid-level managers, or middle managers, are a step above the first-level managers. These managers are still involved in the daily company operations, but they depend on the input of first-level managers. Mid-level managers are operations managers or general managers, but they can also serve as regional managers.

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First-level ManagersFirst-level managers, sometimes called lower-level managers, are at the bottom of the management hierarchy. They are in contact with nonmanagement employees that involve the day-to-day business operations. Their tasks often include scheduling, budgeting, human resources activities. Mr. Irfan and his same level managers lie in first-level managers.

How are the “learning” resources arranged?

Mr. Irfan told that there are so many training programs for employees. Training and development programs are used to teach employees and give them knowledge about hard as well as soft skills. They arrange meetings and conferences to teach employee if there is new software acquired in bank. For example: Bankers may use money counting machines to carry out their tasks. So they are taught about technical knowledge by conferences they are given the demos about new software.

For employee training and development to be successful, management is providing well-crafted job description. In which almost everything is written like, what are the long-term goals of the organization and what are the implications of these goals for employee development? According to them there is support of senior staff to junior staff in their learning.

How roles and duties are assigned?

Tasks are divided among employees said Mr. Irfan. He explained as being operational manager he has to manage client. They had given the duties to know the financial needs of clients and also their financial positions. General Managers like Mr. Ali Akbar and Mr. Farhan are there to check and balance overall system of bank. CEO gives the orders and all subordinates implement on it. General Managers check that all functions are being performed properly or not. Some of these functions are:

Advising clients on matters related to loans, investments, securities and savings. Their financial advice not only helps clients to solve financial needs, but also increases their firm’s profits. That is done by almost every banker.

Keeping records and properly filing all the documents. Client assistant have some duties. He meets with the customer and determines what

assistance he needs. For instance, he can arrange a student loan for students (clients). Reviewing the customer’s financial history is important in determining bank’s ability to meet his financial needs.

Account manager is assigned for assisting clients to manage their accounts. Management of these accounts helps a customer to open or close his account if he so wishes. Reviewing clients’ financial histories and informing them of any account packages is another important function in assisting them to manage their accounts. Bank would not disclose a client’s financial position to anyone without his permission.

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How is the process of stress management carried out in the company?

To reduce stress managers monitor each employee's workload. Managers also care for culture so that it should be free from stress for employees. That no one gets stressed from bullying or such a kind of things in the office. Schedules and timings are flexible for employees. Mr. Irfan told that mostly they are free from work till 6:00 or 7:00 pm in summers. Social interaction and no discrimination are usually adopted so that employees feel free and they can focus on their work. Another thing is telling them about rewards that they may get if they do better. But they are not threatened with punishments.

What are the power-and-politics-related issues of the company? How are they handled?

Like everywhere in Pakistan, In Allied bank is also politics. The party system has also existed there, but the company is trying to handle all the problems. Even it is mostly successful in handling such problem.

When there is time to give rewards or bonuses to employees. General Manager sometime be biased and they mostly used to reward their relatives or friends or their known people. Then this issue was paid attention and a separate business department is also made in the bank. So this is not the case now. After forming that department unions were made against it but now there are dissolved.

Are there any communication issues faced by the company? How are they managed?

MR. Irfan: There are some old age people employed at Allied bank. They are not trained for using new software and they even lack English speaking skills. Sometime communication issues occur in the organization. Sometimes in an email and sometime face to face communication problems occur. But there is such environment that youngsters are required to help them and all employees are trained to communicate properly.

What is the given company doing for employee motivation?

Generally, every way is used to motivate employees. In Bank pleasant lighting and normal

temperature is used. Some of the motivational slogans are written on walls. Birthdays of

employees are celebrated sometimes, and sometimes packets of food are used to motivate employees in conferences. In Allied bank people are praised and rewarded for their work.

They yearly increase the salary of employees. And employees are also given the bonuses. Sometimes their salary is doubled. There are training and transfers for them. Promotions are

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mostly done in March, but specifically after three years. Even employees are given the chance of going to Hajj if they want to go.

How leadership function is carried out at the company?

Leaders have some goals in their minds, but they are supportive for all subordinates. As Mr. Irfan Abbasi is also operational manager. There are some subordinates that he has to manage, he has to check and balance their performance. He is managed by his boss. He and other operational managers are leaders but these are also managed by their leaders like General Managers. They are not only leaders to give command and orders but he said that they also have to take care of their subordinates. Sometime they also have to do work of their subordinates. Me as interviewer observed that Dale Carnegie’s principles are also being used in bank.

Subordinates are appreciated for their work Leaders collaborate with them If subordinates do any mistake intentionally or unintentionally, these are given the chance

to realize it and make it correct (as Mr Irfan said that whenever there occur any problem, they try to manage it within department. And they try that upper-level manager should stay away from these matters. Employees are motivated for cooperation)

What are the behavioral issues of the employees and how are these handled by the company?

Behavior is important factor in Allied bank. Whenever new employee joins he is trained and told about maintaining good behavior. Because members have to deal in good way with clients their soft skills are focused.

Sometime behavioral issues occur in bank. Mr Irfan told that once staff members were disappointed about their salaries and they formed unions. They threaten the managers that they will go for strike some of employees talked weird about bank. When management heard that they even tolerated staff’s not working in bank but managers were very angry when staff talked odd about bank so this was managed efficiently. Staff that didn’t say anything odd they got little increment and others were given threat even of decrement in their salary or they will be fired so everyone got lesson that reputation of bank is really important. And slowly and gradually all unions were dissolved.

Leaders are encouraging now teamwork of employees.

As I mentioned earlier, that if subordinates do bad behavior Operational managers try to tackle all solution but they try that this matter should not go to upper-managers.

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What checks are there to ensure that all functions are performed properly?

As all people are not equally efficient to work so there is checking system for them. Managers do visit to look after functions that are being carried on in bank. Cameras are also there so that there should not be any unethical behavior in banks.

And if we talk about hard skills, checking of financial statements are done by special auditors like sometime Sidat hyder comes. And mostly MR Rafiq audits the company’s financial statement.

Any other data adding value to your report

Nowadays Staff shortage is there in Allied bank. Account opening is centralized. Accounts are opened quickly but account verification takes three days. To become a banker, a person needs a bachelor’s degree in economics, accounting, business administration or finance. Analytical, math, organizational and communication skills are also needed. It is a full-time job, and bankers have various roles.

THANKS

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Special thanks to

MR. Irfan Abbasi

Who welcomed me, and sincerely told me about his bank, and he also

provided me some material and websites about his bank to know

about history and hierarchy of bank.

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