Company Background

1. History:

Bank Al Falah Limited was incorporated in June 21st, 1997 as a public

limited company under the companies Ordinance 1984. The bank
commenced its operations from November 1, 1997. The bank is engaged in
commercial banking and related services as defined in the Banking
companies ordinance 1962.
After a few years, the bank introduced its new identity of H.C.E.B after the
privatization in 1997.The management of the bank has implemented
strategies and policies so the bank would become a major player in the
market.

By building partnership with the Abu Dhabi Group the position of the bank
became stronger which allowed the bank to invest more in revolutionary
technology to increase its range of products and services. This facilitates
their commitment to a culture of innovation and seeks out synergies with
clients and service providers to ensure uninterrupted services to its
customers.

2. Bangladesh Chapter:
On the 16th of May, 2005 Bank Al Falah Ltd. Formally took over the
Bangladesh operations of Shamil Bank Of Bahrain for US $17.88 million
and renamed it to Bank Al-Falah. This was the first branch of the bank
outside Pakistan. Currently there are five branches of the bank in the
country, three being in Dhaka and others being in Chittagong and Sylhet.

3. Corporate Slogan:
Bank Al-falah Ltd. Promotes The Caring Bank as their corporate slogan.
This slogan implies that this bank ensures high quality customer service to
create long lasting customer relationship.

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

5. Vision:
To be the premier organizations operating locally and internationally that provides the
complete range of financial Services to all segments under one roof.

6. Company Profile:
Headquarters:

168, Gulshan Commercial Area-2, Dhaka-1256.

Managing Director:

F A Masrur

Products:

Loans, Credit Cards, Savings, Consumer Banking

etc.
No of Branches:

05

Location:

Gulshan.Motijheel, Dhanmondi (Dhaka) Agrabad

(Chittagong),
Mirabazar (Sylhet).
Paid Up Capital:

BDT 2000 Million

Authorized capital:

BDT 3500 Million

Revenue:

BDT 15.783 Million [2009]

Net Income:

BDT 3.130 Million

Website:

www.bankalfalah.com

7. Competitive Advantages:
o

Becoming increasingly competitive.

Banks customer base is expanding and strong customer loyalty.

Excellent in Islamic Banking System.

Getting idea from customer to develop services.

Company Management System

Management means the administration and the governing body that is concerning the
whole organization. All the decision and strategies are been proposed and evaluated
the management of the organization. At Bank Alfalah, the management is pretty strong
and there is lot centralization in the whole network of the bank. The management at
Bank Alfalah has been divided into 3 major parts i.e. Board of Directors, the Top
management, and the group of middle managers, supervisors and the employees.

1. The Board of Directors:

The upper most part of the management is the Board of Directors or the Executives.
The Board of Directors is responsible for the first phase of the management process,
i.e. planning. So, all the decisions and the strategies are being proposed and
implemented under the instructions and the supervision of the board of directors or the
executives. Also the policies and the overall objectives of the Bank are being proposed
at this level of the organization.

2. The Top Management:

The top management involves the branch managers and the chief managers of the
bank including the operations managers as well. The major responsibilities include the
strategy formulating for the bank and supervising the whole staff at the branch. They
define and interpret the objectives and vision and then formulate policies for their
completion.

3. The middle management, supervisors and the employees:

Departmental heads constitute this level of management at Bank Alfalah.

They are directly responsible for planning and controlling the activities of
officers. Finally, the employees activities are monitored and controlled
according to the desired objectives.

Management Functions

1. Planning:

1.1 Definition:
It is the establishment of overall strategies for achieving organizations
goals and objectives and developing a comprehensive set of plan to
integrate & coordinate organization work. Bank al Falah also plan for its
operation.
1.2. Type of plan:
Bank al Falah use both formal and informal type of planning. In informal
planning, their planning is not written down, short term focus and specific to
an organization unit. In formal planning their planning is not written down,
specific

long

term

focus

&

involves

shared

goals

for

an

organization.
1.3. Goals & Objectives:
Goals and objectives are factors through which the companys devotion
and commitment to the job can be seen. If the goals are realistic and
achievable, than surely that organization is doing its job. Bank Al Falah also
has certain goals and objectives which it is trying to achieve, through its
various strategies and operations. The goals and objectives are mentioned
below:

To create a sound base, and through efficient systems achieve

modern banking throughout Bangladesh.

By the end of every accounting year there is an increase in deposits.

As the deposit rate during 2006 was approx 72 million and the same has
been increased in 2009 by 97 million.

To create unit banking network in all the branches of Bank Al Falah,

the end of the year. This means that all the operations of the bank, i.e.
deposits to advances, imports, exports, L/C Opening, foreign currency and
many more aspects under one roof, so that the customer can be facilitate in
one visit.

Islamic Banking is one of the goals of Bank Al Falah though it has

been initiated in the last fiscal year and it is very acceptable for general
public. In this regard the Bank is opening specific Islamic Banking Branch
under the supervision of its Islamic Banking Division.

1.4. Process of planning:

(a) Mission: To develop and deliver the most innovative products, manage
customers 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.
(b) Strategies: Strategies of Bank al Falah are giving loans and accepting
deposit.
(c) Plan: Plan of bank al Falah is short term advance and deposit.

(d) Program: Program of Bank al Falah are up to one year or more then
one year advance, fixed account, current account, etc.
(e) Policies: Policies of Bank al Falah are profitability by making
profitability advance and customer satisfaction by providing best services at
on affordable cost.
(f) Rules: Their rules are depending upon by upper level of management
according situation.
(g) Budget: Bank al Falah always met its budget.

1.5. SWOT Analysis:

1.5.1 Strengths:

Strengths are the core competencies of any organization & as far as BAFL
is concerned the core competencies of this organization are:
Target Achievement
Policies & Procedures
Controlling Standards
Priorities
Rewards & Benefits
Job Security for the Employees.

 Favorable, friendly & Healthy Working Environment.

Documentation System is so much accurate.
Accounting & Banking System is Accurate & Reliable One.

1.5.2 Weaknesses:

Weaknesses are the lacking points which every organization must avoid in
order to make its operational effectiveness. The weaknesses of BAFL are:
Hectic Working Environment.
Work load.
Lack of Self Marketing Department.
Low Training & Coaching.
Low incentives like bonuses overtime pay etc.
Human Resource Department is not so much effective.
Appraisal is not done frequently.
Low salary packages as compared to other banks.

1.5.3 Opportunities:

In fact, when we study all our weaknesses critically & deeply than we come
to know that we can convert our weaknesses into strengths. So basically
these are our opportunities. The opportunities for BAFL are:

 On the job training & coaching sessions can be conducted.

Work sharing activities should be started so that a person who is working continuously

for 9

hours can get relax.

Marketing department should be started in order to promote the name of BAL.
Appraisal should be conducted frequently so that employees get motivated & do their work as a
loyal employee.
Attractive salary packages should be awarded.

1.5.4 Threats:

Though Bank Al Falah has a strong footing and maintain a good number of
loyal customer, still bank has threats in various sectors. When we see the
possible threats for BAFL, the threats are prevailing such as:
The conventional banks those having high growth rate and high market share are always being a
threat.
There is an average not low turnover rate, mainly because of low incentives as compared to the
other banks.
Large business parties have fewer attractions in being a client of BAFL-IBD, mainly because of
excessive amount of documentation.

1.6. Porters Five Forces Model

For further analysis of Bank Al Falah environment, Porters Five Forces

Analysis is also applied on the bank. This analysis takes in to consideration
the following factors:

1.6.1 Availability of Substitutes:

Substitution of one product with another one increases the rivalry within an
industry. Although perfect substitute of banks are not available in the
market Bangladesh but people still have choices of saving or investing their
money. They can either save their money at homes or put their money in
the banks which give protection to their assets. Aside from saving one can
invest money in stock market in form of shares / bonds or in real estate.
These kinds of substitutes increase the rivalry in the banking sector.

1.6.2 Rivalry among existing firms:

There is tough competition among various banks. As variety of public and

private banks are already existing in the market, offering products on
competitive prices. If we look at Islamic Banking products then, Islamic
Bank Bangladesh Ltd., Al Arafah Islami Bank, Prime Bank and many others
are offering wide range of products in this sector in Bangladesh. The tough
competition among these banks gives rise to the challenges which the
competitor banks have to face. The competition among various banks
increases the switching of the customers form one banks product to the
other bank.

1.6.3 Threat of new entrants:

The banking sector of Bangladesh has always chances of growth and

competition so many new banks enter and leave the market. Mostly foreign
banks step in the developing countries like Bangladesh for expanding their
branches, not only this mergers between foreign and local banks take place
at large scale but Bangladesh present economic condition and government
instability has arose the feelings of awe and terror among most of the
foreign banks to enter in the market. In future due to uncertainty and
security problems in Bangladesh investors will not be willing to invest here.
Due to overall financial problems in the whole world new banks will not be
entering in to the banking industry.

1.6.4 Bargaining Power of Buyers:

Bargaining power of buyer is low where the products substitutes are not
available and customers are large in number. In case of banks, there are
lots of other banks and banking intermediaries, having wide range of
products in Bangladesh. So power of buyer in banking sector is high. The
bank cannot force any customer to buy the desired product because this
directly affects its reputation, but can convince its customers by giving them
special discount or rewards. If we look at Bank Al Falah, we will find that
the competitors are also offering products due to which customer feel in
power by saying that they can go to some other bank in case of
dissatisfaction.

1.6.5 Bargaining power of Suppliers:

As in banking sector, suppliers do not exist so there is no bargaining power

of supplier.

1.7. Decision Making:

1.7.1 Top Level Managers:
Important and overall decisions of the bank are made by top level
managers.
1.7.2 Regional Managers:
Make decisions at regional level.
1.7.3 Branch Managers:
Make decisions at branch level.

2. Organizing:

An organization is a deliberate arrangement of people to accomplish some

specific purpose. Your banks, Universities is an organization, college, Govt.
department

all

organization

because

they

have

three

common

characteristic.
2.1. Organization structure:
Organizing structure of BAFL is composed of both mechanistic and organic
to create business performance and to build competitive advantage. Major
portion of BAFL organization is decentralized because managers of all
levels have the power of decision.
2.1.1. Finance Department:

Finance is responsible in terms of money in all departments or monetary

policies. It is concern with more in flow of the cash that outflow of the cash
in terms of BAFL. They use structured finance unit.
2.1.2. Marketing Department:
Marketing department performs different functions in term of BAFL
including sales, need identification, positioning, targeting and promoting.
2.1.3. I.T Department:
This department deals with ATM network service, online banking and
phone banking.
2.1.4. HRM:
HRM means to put the right people, for the right job, at the right place
.HRM deals with the fair job description in BAFL. It uses road-map of HRM
which helps BAFL to process human resource.
2.2. Purpose of organization:
o

Work to be done into specific jobs and department in Bank Al Falah

Co-ordinate diverse organization task in Bank Al Falah.

Establishes former line of authority in Bank al Falah.

Allocates and deploys organization resources in Bank Al Falah.

2.3. BAFL management chart:
Management performs different type of functions in BAFL.
2.3.1. Chief Executive Officer:

o Controls the whole management affairs in BAFL.

2.3.2. Executive in charge:

o Establishing the environment of strategic planning and aware of to hold the
global market.
o Manages the HRM and assign work to individual for betterment.
o Divide the credit in different place ways and allocation to safer place.
o Controls the administration activities and carries on the establishment
process for the betterment of BAFL.
o Investigates the business development reports that our business gets profit
or loss.
o Analysis the audit and inspection division for efficient work.
o His work is to divide the cards in best manner, just like debit cards, credit
cards, ATM cards and Hilal cards in BAFL.
o He did his work for internal and treasury division in BAFL.
o Divided IT.
o Supports the corporate and home finance.
o Monitors the credit division.
o Investigates the local affairs.

3. Leading:

The leader is needed by the every field & organization , as well as the
BAFL has its leader in the form of High qualified & skilled managers, which

are working hardly to put the peak level as well as achieving the
organizations pre-selected goals.

3.1. By early leadership theories:

The Bank Al Falah has formal way of leadership style (Formal vs. Informal).
The leaders of Bank Al Falah are Democratic. Because the major portion of
bank is De-centralized thats why the each leader is able to use the
complete power of decision making, but they are working Collaboratively
in whole organization with each other. Al leaders of bank are involved in
decision making, delighting their authority to their higher qualified
employees, encouraged the participation of their employees in work and
gives them opportunities coaching in well manner (Type of leader).
The behaviors of leaders of BAFL are lies in the Team Management,
because all the managers are doing their work collaborative with each
other and also with their team of workers, they have as well (Managerial
Grid).
The leader of Bank Al Falah has the following Traits & Skills in themselves
(Traits of leader):
o Decision making
o Risk taking & Risk bearing
o Stress taking & Stress bearing
o Communication Power
o Honesty

o Strong vision
o Inter personal skill
o Step forward
o Discipline
o Believe of on equality

3.2. By contingency leadership theories:

All the leaders of BAFL are cooperative with their followers and no one
possess uncooperative attitude (LPC Theory).
(Situational
As above the all leaders of BAFL are very cooperative to each other as well
as with Their followers, that s why they are also providing the right
Path/Direction, after friendly, to their followers on through they and their
followers could achieve their targets and goals (Goal-Path Model).
3.3. Leadership behaviors:
They provide proper schedules, direction, and guidance etc. to their
followers, from through the employees can do the specific work which has
been given to them, to achieving their and organizational objectives as well
(Directive).

The leaders also give the proper attention on their employees and also help
them in case of any trouble in achieving the targets and tasks (Supportive).
3.4. Motivation:
The leaders of BAFL use motivation to encourage their employees to
achieve the best result.
3.4.1. Early Theories of motivation:
The leaders of BAFL are very well familiar with all the basic or extra needs,
like physiological, safety, social, esteem and self actualization needs.
Thats why they are handling their employees that they are providing the
basic needs to their employees and provide them higher level rewards if
the employee performs better.
The BAFL has the both type of employees x and y in it. So, manager
motivates the employees according to their behavior. Some of the
employees of the type x in the bank feel like hygiene from their job, Thats
why managers face some difficulty to motivate them.
3.4.2. Contemporary Theories of motivation:
These theories and approaches are representing the current explanations
of the employees motivation. These theories are; Three- needs theory,
Goal-Setting Theory, Reinforcement Theory, and Equity Theory.
According to these theories, the manager of BAFL motivate their
employees in the sense that their employees do the work for achievements
and they behave in the best way with everyone, so to make a friendly
atmosphere in the whole organization, for making a good relationship with
everyone.

4. Controlling:

4.1. Definition:
Controlling is the process of monitoring activities to ensure that they are
being accomplished as planned and of correcting and significant deviation.
4.2. Importance of control:
Control is very much important because it is the final link in the
management function. It is the only way manager know whether
organizational goals are being met or not and the reason why?
In Bank Al-Falah the importance of control can not be neglected because
its a services base organization and deals with finance. Every employee in
this organization has direct and indirect interaction with financial activities
and finance playing the key role in the progress of the bank.
4.3. Types of Control:
Bank Al-Falah follows two types of control. One is Feed forward control in
which problem is identified and resolved before accruing and another is
Concurrent control in which problem is identified and resolved while that is
accruing.
4.4. Division in Bank Al-Falah for Controlling:
Following are two divisions in Bank Al-Falah for controlling purpose.

Credit Monitoring Division; credit monitoring division monitor all the activities related to
following areas:

o Credit card
o Hilal Card ( debit card)
o Auto loans
o Homes Loans
o RTC
o Money Gram

Audit and Inspection Division; this division in Bank Al-Falah conduct the internal audit at the
inspections of all the activities in Bank Al-Falah to insure the accuracy of work and the
performance of the bank.

4.5. Control Criteria

4.5.1 Data Integrity:
o
Are the controls in place to ensure the integrity of the data?
o

Are records up-to-date and accurate?

4.5.2 Documentation:
o
Are all systems, functions, processes, procedures, programs, and
activities clearly documented?
o

Is the documentation readily available for examination?

Are operating procedures adequate?

4.5.3 Recording:
o
Are the records shows that controls are in use?
4.5.4 Supervision:
o
Are appropriate procedures in place for assigning, reviewing, and
approving work?
o

Do the employees adhere to procedures for assigning, reviewing, and

approving work?

4.5.5 Authorization:
o
Are appropriate controls in place to ensure transactions and other
significant activities are authorized and executed only by authorized
personnel?
o

Do employees adhere to the requirements of authorization only by

authorized personnel?

4.5.6 Separation of duties:

o
Are key duties and responsibilities such as authorizing, processing,
recording, and reviewing separated among individuals?
4.5.7 Security:
o
Are appropriate procedures in place which limits access to resources
and records to authorized personnel?
o

Do employees adhere to security procedures?

4.6. Process of control:

4.6.1 Measurement of performance:

There are two ways to measure the performance in Bank Al-Falah:
Qualitative and Quantities. In measurement of performance employees of
the organization are being measure qualitatively 40% and quantities 60%.
4.6.2 Comparing actual performance with standards:
Comparing the performance of the degree of variation between actual and
standards performance. In Bank Al Falah following standards are set to
compare actual performance.

(a) General standards:

o

Compliance with law

Reasonable assurance and safeguards

Integrity, competence, and positive attitude

(b) Specific Standards:

Team Leader
In the Bank al Falah mostly every executive is working together with
employer under him/her, and every manager is also working together with
employer under him/her and they all are working collaboratively with each
other in all the department of whole organization.
Transformational &Transactional Leader
The leader of Bank Al Falah is giving guide line and direction of established
goals of these followers by clarifying the rate and task requirements for the

best possible unit. Thats why these leaders of bank are Transactional
Leader but not Transformational leader.
4.6.3 Managerial Action:
At lower level in the Bank supervisor and manager ensure the proper
handling of the activities and they assign the targets to their subordinates to
achieves in a given time and at those bases, they asses the performance of
the employee.

Recommendation

Here some suggestions are given which will enable the bank to compete
with other banks more effectively & efficiently.
o Bank Alfalah Limited should properly advertise and Communicate to public
about the services provided by it, so that more customers will be attracted.
o The banks management should give more incentives and pay scale of
officers should be revised & improved.
o System and operations should be more defined and organized.
o IT draw backs should be improved.
o Administration drawbacks should be improved by the strict control of
general issues.
o Audit should be held internally. Rather there should be an Audit Department
in the branch to make audit on daily basis. This can become as helpful as
different banks are having this department of their own.
o Lockers, ATM, all these facilities should be provided to attract more
customers.
o Expenditures must be control, which are very high.

Conclusion
Bank Al Falah has a strong historical background of overcoming the
challenging situation. It has strengths against weaknesses to cope with the
opportunities and threats because of changing environment. It also has a
strong managerial style and cares its employees.
Overall working environment in Bank Alfalah is comfortable. Management
of branch cares a lot of its employees and considers them as the Asset of
bank. Behavior of senior executive of bank is very polite and they are
caring

about

the

individuals

career

and

their

growth.

However

management is very demanding about the targets but good reward at the
achievement of assigned targets is awarded.
Employees at Bank Alfalah are quite efficient. Therefore, they work more
than their working hours and it is all according to their will. It also shows
their loyalty, commitment to organization. Employees are given the benefits
like bonus, gratuity funds, loans, increments, and medical.
So far it is concerned; all the employees at branch are quite cooperative.
They help employees to understand the activities of a bank to possible

extent. Their good attitude gives employees more confidence to learn more
and to ask if they have any query in their mind. However, by following
suggestions discussed above, BAFL will become a strong competitor in
Bangladesh.