Askari Commercial Bank Limited

Human Resource Management of Askari Commercial Bank Limited.
INTRODUCTION OF THE ORGANIZATION

Askari Commercial Bank Limited, ACBL was incorporated on
October 09, 1991 as a Public Limited Company and is listed on the
Karachi, Lahore and Islamabad Stock Exchange. It started its operations
from April 01, 1992. The bank was declared as “Best Bank in Pakistan”
in 2001 in Global Finance. The bank’s registered office/Head Office is
situated in AWT Plaza, The Mall, P.O.Box No. 1084, Rawalpindi
(Pakistan).
Mission Statement: -
The mission statement of the bank is
“To be the leading private sector bank in Pakistan with an
international presence, delivering quality services through
innovative technology and effective resource management in a
modern and progressive organization culture of meritocracy,
maintaining high ethical and professional standards, while
providing enhanced value to all their stakeholders, and
contributing to society”.
Askari Commercial Bank Limited was the first bank in Pakistan to offer
Internet banking Services and B2B e-commerce (Business to Business
electronic Commerce) solutions for merchants looking to purchase on
credit. They believe that balanced growth is the key to survive in the
today’s global banking environment.
Hailey College of Banking & Finance, Punjab University, LHR. 1

Corporate Information: -
Board of Directors: -
Lt. Gen. Faiz Jillani Chairman
Lt. Gen. (R) Masood Parwaiz Chairman Executive Committee
Mr. Kalim ul Rehman President & Chief executive
Brig. (R) Muhammad Shiraz Baig Director
Brig. (R) Asmat Ullah Khan Niazi Director
Brig. (R) Muhammad Safdar Ali Director
Brig. (R) Muhammad Bashir Baz Director
Mr. Javed Ahmed Noel Director
Mr. Zafar Alam Khan Sumbal Director/ Secretary
Mr. Shahid Hafeez Azmi Director
Mr. Muhammad Afzal Munif, FCA Director (NIT Nominee)
Audit Committee: -
Mr. Muhammad Afzal Munif, FCA Chairman
Mr. Javed Ahmed Noel Member
Brig. (R) Asmat Ullah Khan Niazi Member
Mr. Zafar Alam Khan Sumbal Secretary
Auditors: -
Taseer Hadi Khalid & Co.
Chartered Accountants
Legal Advisors: -
Rizvi, Isa, Afridi & Angell

Registered Office: -
AWT Plaza, The Mall,
P.O. Box No. 1084,
Rawalpindi, Pakistan.
Tel: (92 51) 9272150-53
Fax: (92 51) 927 2455
E-Mail: webmaster@askaribank.com.pk
Website: www.askaribank.com.pk
Registrar and Share Transfer Office: -
Askari Associates (private Limited,
6th Floor, AWT Plaza, The Mall,
P.O. Box No. 1084,
Rawalpindi, Pakistan.
Tel: (92 51) 9272442-44
Fax: (92 51) 927 2447
E-Mail: askari@isb.compol.com

Nature of Strategic Planning in ACBL: -

Askari Commercial Bank is trying to achieve Business Level
Competitive Strategy which will help them in strengthening the
business’s long term competitive position in the market place. The bank
is trying to become the bank of First Choice in the Region. The Bank is
using Human Resource as a strategic weapon which will help them in
achieving short term as well as long term objectives.
Importance of Human Resource Division of ACBL: -
“Our staff is our most valuable asset”
Strategically, the most important division at company is responsible for
Human Resource Management, including recruitment, selection, staff
training, job analysis, performance appraisal and job evaluation. The
division also handles matters relating to administration. It operates on a
future oriented strategy focusing on employees personal and professional
growth, keeping in minds their career and development paths. Staff is
given on the job as well as site training in diverse areas of banking and
management. Fifty two in house courses were organized during 2001 in
Askari Commercial Bank Limited for training the employees.
The HR manager says that we are committed to provide a
healthy environment, culture, job satisfaction, opportunity and
compensation that attracts and retains outstanding individuals. We strive
to build an organization where the best people want to work and to be the
first choice of where customers want to do their business.

ACBL value a work place where:

 People are promoted on their merit rather than on their tenure that
means ACBL gives priority to competence than to seniority, the
rewards for their performance within the context of what they can
personally control or influence in the course of their efficient job
performance.
 People treat each other with mutual respect and dignity.
 People truly feel that no matter how large we grow, each one of us
can make a difference.
 No discrimination among the male and female employees.
Staff development activities are geared to enhance the capabilities for
applying the knowledge and facts towards development of practical
solutions. Under their Human Resource policy, they develop and boom
their managers and personnel for position of greater responsibility,
analytical, interpersonal, conceptual and specialized skills to enable them
understand the cause and effect relationship and to think logically.
Moreover, the Bank’s Human Resource Division helps managers to
obtain, develop, utilize, evaluate, maintain and retain the right number of
people at right place and at a right time. It has to achieve organizational,
functional, societal and personnel objectives. It contributes to run the
organization effectively. Though the managers are responsible for the
performance of their employees, Human Resource Division helps
managers by assisting them in their human resource issues towards
accomplishment of organizational goals and objectives. It assists

employees in achieving their personnel goals, as these goals enhance the

individual’s contribution to the organization.
HR Head’s Responsibilities;
As this division operates on future oriented strategy focusing on
employee’s personal and professional growth, Human Resource Division
at Head Office of the Bank is responsible for Human Resource
Management including recruitment, selection, staff training and proper
compensation plans and employee’s job evaluation.
Over the last to years, the Human Resource Division of Askari
Commercial Bank Limited was successful in implementing:
1. Staff Hospitalization Plan;
2. Staff Transport Finance Scheme;
3. Executive Car Buy-back Option;
4. Surplus Vehicles Balloting for Staff;
5. Medical Leave of Absence Facility;
6. Privilege Leave of Absence Encashment;
7. Enhancement in Staff House Finance Limit;
8. Insurance of House Finance;
9. Increment in Salaries Up to 15%;
10. Rationalization of Pay Scales;
11. New Performance Appraisal System;
12. House Rent Facility.
The changing environment of ACBL’s HRD:
As every thing is subject to change, so Askari Commercial Bank has to
create their work in response to the time in which they live and change

their structure in response to the need to follow their customer overseas.

In order to be better faster and competitive, Askari Commercial Bank
Limited is always ready to adopt consistently changing environment.
Being a service organization, Askari Commercial Bank Limited has to
keep a track with the thing like globalizationand technological
advancement etc.
The Bank’s Managers say;
We enjoy a strategic competitive advantage over all domestic players by
virtue of our leadership in technological innovations. We have fully
automated transaction processing system for the back-office support. Our
branch network is connected on-line real time and our customers have
access to off-site as well as on-site ATMs all over Pakistan. Our Phone
Banking service and Internet Banking Facility allows customers to enjoy
routine banking services from any where in the world, 365 days a year
and 24 hours a day. We have also pioneered e-commerce venture in
Pakistan through a major retail distributor.

RECRUITMENT AND SELECTION

Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the
organization.
ROLE OF HRD IN RECRUITMENT PROCESS
HRD of Askari Commercial Bank Limited is responsible for
designing the selection system and managing its everyday operation.
Human resource mangers in cooperation with other managers
largely set the overall strategy, they are likely to be influential in
deciding, e.g, whether the department should focus on choosing
people who are best qualified for current vacancies of for those who
have the greatest long term potential. The personnel managers also
decide how the guidelines for equal employment opportunities met
and whether the bank needs outside legal assistance in formulating
its affirmative action plan.
JOINING THE BANK
On joining the bank the following formalities must be
completed:
a) The documents listed below shall be forwarded immediately
to Human Resource Division for completion of their record.
i) Duplicate copy of appointment letter duly signed by the
employee in acceptance of the terms and conditions embodied
therein.

ii) Four copies of recent passport size photograph.

iii) Photocopies of all academic certificate especially metric
certificate.
iv) Photocopies of testimonials from previous employers.
v) Fitness certificate as per Clause (4) of the letter of
appointment.
vi) Photocopy of National Identity Card.
vii) Clearance letter from previous employer.
RECRUITMENT PROCESS
Recruitment of employees, in general the sources of
recruitment can be classified into two types.
i) Internal Job Posting:
Filling a job opening from within the firm has the advantages
of stimulating preparation for possible transfer, or promotion and
increasing the general level of morale.
Self Nomination:
Human Resource office publishes a monthly newsletter that
list the Askari Commercial Bank Limited's job posting program to
different routes to nomination for a job, self nomination and
nomination by an employee supervisor.
Positions available the announcements carry information
about the nature of the position and the qualification needed, and
any employee whose interested bid on the job that is enter the
competition for it.

If accepted for the posted job, the former supervisor is allotted

approximately a month to provide for a successor. The personnel
units act as a clearing house in screening bids that are unrealistic,
preventing an extensive number of bids by a single employee and
cancelling employees who are constantly unsuccessful in their
attempts to change job.
Nomination by Employees Supervisor:
Informal communications among managers lead to the
discourage that best candidates for a job is already working in a
different section of the firm.
In 4 years of its merger 3000 opening were advertised posted
of which approximately 68% were filled. 32% of the opening were
cancelled. One reach for can effation is that supervisions with
vacancies often post jobs and interviews can ideates, and then when
they are not satisfied with the qualify of the candidates, they
disquality all nominees and ask management for permission to
recruit from outside.
Despite some minor problems, most employees were pleased
that an internal job posting program was established. Most
successful nominees were happy with their new assignments and
unsuccessful nominees identified needed skills and gained a more
realistic idea of additional training or experience required for careers
alternatives.
ii) External Job Posting:

Askari Commercial Bank Limited also go to external sources

for positions whose specification can not beam by present personnel.
Askari Commercial Bank Limited uses following outside sources.
1) Advertising:
Advertisement are placed in various newspapers. More
information about the bank, and job specification are included in the
ad to present some self-screening.
2) Employment Agencies:
Additional screening is affected through the utilization of
private employment agencies.
This Horizon agency has specialized in various types of staff
and job e.g. sales office, execution or engineer.
3) Casual Applications
Unsolicited applications both at the gate and through the mail
constitute a much used source of personnel. These has been
developed through promission of attractive employment office
facilities and prompt and continuous replies to unsatisfied letters.
4) Leasing
To adjust short term function in personnel needs. The
possibility of leasing by the hour or day is considered. Askari
Commercial Bank Limited not only obtains well trained and
selective personnel but avoids any obligation in pension, and other
fringe benefits.
THE HIRING PROCEDURE

In the hirings procedure, Askari Commercial Bank Limited are

following steps to discover significant information about an
applicant.
1. Call for application
2. Preliminary interview
3. Applications blank
4. Check of References
5. Psychological lest
6. Employment interview
7. Approval by the supervisor
8. Physical examinations
9. Induction or orientation
1) Call For Application
First of all, an ad is given in the newspaper for the vacancy.
2) Preliminary Interview:
In this step, the more obvious facts and impressions are of the
type generally obtained in an initial interview. Appearance and
facility in appear are quickly evaluated. Applicants are often asked
why they are applying for a job with Askari Commercial Bank
Limited. An idea of education and experience is obtained by asking
for the last grade finished in school and the names of jobs previously
land.
3) Application Blank:

The application form is a sheet or small, booklet with blanks

to be filled in by the applicants. Its purpose is to supply organization
with basic information about the candidate's back ground: education
work experience, previous salary, and so forth.
In Askari Commercial Bank Limited factual information are to
be obtained by means of an application blank.
Weighted application form is established and used with
caution. It is used for two prime objectives.
i) Askari Commercial Bank Limited has established the selection
of more stable employees to decrease labor turnover. They
have discovered and utilized the particular data that devote
stability facts relating to home ownership, marital status, age
and sex.
ii) Askari Commercial Bank Limited has also established job
proficiency as the major objective and have correlated
biographical items with production records.
The application blank is continuously updated. The entire
blank is restudied and reweighted every 3 years at the minimum.
4) Check of References:
The purposes of the reference check are to obtain information
about past behavior of applicants and to verify the accuracy of
information given not he application blank. Askari Commercial

Bank Limited uses combination of letters and telephone calls, as a

method of checking.
Reference includes only
1) Dates of employment
2) Job title
3) Absentee record
4) Promotions and demotions
5) Compensation
6) Stated reason for termination.
Are Askari Commercial Bank makes sure that privacy is
protected.
5) Psychological Test:
In Askari Commercial Bank, clericals jobs are subjected to the
greatest amount of testing, applicants for unskilled hourly jobs are
tested least. The factors measured are usually of the psychological
type, such as ability to reason, capacity for learning, temperament
and specific aptitude.
Types Of Psychological Tests:

Following types of tests are being used in Askari Commercial
Bank to identify talents.
i) Intelligence test:

These tests concentrate on a person's abilities with worlds

numbers logical reasoning and spatial relationships. This type of test
is used for managerial posts.
ii) Mechanical Aptitude test:
Askari Commercial Bank uses mechanical aptitude tests.
Inventions are asked which fall into the general area of
understanding area of under standing mechanical relationships.
Some question's relate to knowledge of tools and equipment. This
type of test is suitable for technical posts.
iii) Clerical Aptitude Test:
This test deal with questions concerning office vocabulary,
automatic, selling and detail checking. This type of test is used for
clerical posts, such as computer operator.
iv) Interest Test:
Askari Commercial Bank realizes that a person who is
interested in a job or task will do much better than one who is
uninterested. The applicant is asked whether he likes, dislikes or is
indifferent to many examples of school subjects, occupations,
amusement, peculiarities of people and particular of activities.
6) Employment Interview:
Interviewing is probably the most widely used single method
of selection.
Askari Commercial Bank shapes interviewer behavior is to
establish a specific system for conducting the employment

interview. Askari Commercial Bank considers following things to

set up such a system.
1) To know what to look for in applicant focus only those know
ledges, skills, abilities and other characteristics (KSAOS)
necessary for the job.
2) Develop interview questions that are strictly based on the job
analysis results, use "open-ended" questions and use questions
relevant to the individual's ability to perform, motivation to do
a good job.
3) Conduct the interview in a relaxed physical setting. Begin by
putting the applicant at ease with simple questions and general
information about the organization and the position being
filled.
4) To evaluate applicants, develop a form containing a list of
KSAOs weighted for overall importance to the job.
7) Approval by the Supervisor

After the employment interview the immediate supervisor
approves the candidates. The candidate's recruitment is confirmed
after probationary period.
8) Physical Examination:

The physical examination step found in most business.

Physical examination includes matching of an applicant's physical
capabilities to job requirements to a simple check of general
physical appearance and well being.
In having the physical examination procedure Askari
Commercial Bank has at least three basic objectives.
1) First, it serves to ascertain the applicant physical capabilities
e.g. can the applicant work standing up.
2) The second objective of examination is to protect the bank
against unwarranted claims under Staff's Compensation Laws
or against lawsuits for damages. If a record of a new
employees physical condition at the time of entry does not
exit, a claim could possibly be filed for injuries greater than
were incurred after starting to work.
3) Third objective of physical examination is to prevent
communicable diseases from entering the organization.

TRAINING AND DEVELOPMENT

ORIENTING AND TRAINING OF EMPLOYEES
Once employees are "on board" their personal growth and
development overtime become a major concern. Change is a fact of
a organizational life and to cope effectively with it.
In Askari Commercial Bank both human resource directors
and other managers play an critical role in the development of
orientation programs. Human resource directors have assumed
leadership in developing such programs.
ORIENTATION OF NEW EMPLOYEES
After the selection of successful employees the first step in
their introduction to bank policies, practices and benefits is an
orientation program.
The Orientation program in Askari Commercial Bank is
completed in three phases.
The first phase is usually conducted by the staff personnel
unit. Subjects covered include products of the bank, employee
benefits, salary schedules, safety, probationary period, timed
recording and absence, holidays equal employment opportunity
programs, packing and the grievance procedure.
The second phase of most organized induction program is
performed by the immediate supervisor. The inductee is introduced
to fellow employees, given a tour of the department, and informed
about such details as locker and rest rooms, supply procedures,

hours of work overtime, call in procedures, rest and lunch periods,

and lunching facilities.
The complete in action program will provide for phase three
follow up some week later.The interview, conducted by either the
supervisor or a personnel specialist is concerned with
1) Employee satisfaction with the job and organization.
2) Supervisor satisfaction with the employees.
Dissatisfactions may be cleared up by explanations or actual
transfers to a different job. In any event, the interest in the employee
evidenced by the more act of having a follow-up interview will help
to increase the leveral of employee satisfaction.
After the employee has been received, selected and inducted,
he or she must next be developed to better fit the job and the
organization. No one is a perfect fit at the time of hiring, and some
training and education must take place.
Askari Commercial Bank is a multinational organization in
which importance has been given to training. The management
consider the training as an "Investment in their Asset". They
believed that planed development programs will returns values to
the organization interms of increased. Productivity, high reined
morale, reduced costs and greater organizational stability and
flexibility to adapt to changing external requirements.

Askari Commercial Bank management as whose is initially

interested in training and educational programs in order to promote
employment and utilize the talents of its citizens.
TRAINING NEEDS ASSESSMENTS:
In Askari Commercial Bank there are three level of analysis
for determining the needs training can fulfill.
1. Organization analysis:
Focuses on identifying where within the organization training
is needed.
2. Operation analysis:
Attempts to identify the content of training - what an
employee must do to perform competently.
3. Individual Analysis:
Determines how well each employee is performing the task
that make up his or her job.
At this level, training needs may be defined in terms of a
simple equation.
Desired performance - Actual Performance = Training need.
OPERATIVE TRAINING:
The development of operative calls for specific increased in
skills and knowledge to perform a particular job. In Askari
Commercial Bank there are primarily two basic methods in use.
1) On The Job Training:

Since most jobs in Askari Commercial Bank can be learned in

a relatively short period of time, this method is most widely used. It
has the advantage of strongly motivating the trainee to learn since it
is not located in the artificial situation of a classroom. The fact that
the success of the system depends almost entirely upon the
immediate supervisor, the trainer, means that the personnel unit has
a major responsibility for making a good, effective reaches out of
every supervisor.
The types of on the job training implemented in Askari
Commercial Bank are:
Apprenticeship programme which include both class room
instructions as well as on the job training. This type of training is
given to the new inductees and usually two years long.
2) Off the Job Training
There are following methods used in Askari Commercial Bank
for Off the Job training.
i) Staff Training Program:
ii) Special Courses:
iii) Selling and Technical skills training program:
iv) Opportunities For Improvement Of Educational And
Technical Qualification:
EVALUATING TRAINING PROGRAMS

Training must be evaluated by systematically documenting the

outcome of the training in terms of how trainees actually behave
back on their job and the relevance of the trainees behavior to the
objectives of the organization.
To assess the utility or value of training, in Askari
Commercial Bank management seek ensures to four questions.
1. Did change occur,
2. Is the change due to training,
3. Is the change positively related to the achievement of
organizational goals;
4. Will similar change occur with new participants in the same
training programs.
In evaluating training programs, measures of change fall into
four categories.
Reaction:
How do participants feel about the training program?
Learning:
To what extent have trainees learned what was taught.
Behavior:
What on the job changes in behavior occur because of
attendance at the training program?
Results:

Is what extent have cost related behaviour outcomes or quality

improvement, turn over or accident reduction (productivity)
resulted from the training.

EMPLOYEES SERVICES SAFETY, HEALTH & WELFARE

For the purpose of attracting a productive human resource and
ensuring his positive contribution to the organization's success over
an extended period of time, the companies offer a variety of
facilities, benefits and welfare programs to its personnel.
Likewise, Management at Askari Commercial Bank, in
addition to giving basic pay to its employees, also cares for many
employer benefit schemes and programs some of which are the
distinction of large corporations only. Here are important mentions
in this respect.
Askari Commercial Bank adheres to all laws and regulations
of government. For instance, Askari Commercial Bank follows
Minimum Wage Board Act, Industrial Relations Standing
Ordinance, Workman Compensation Act.
Askari Commercial Bank has developed ten grades for rank
and file staff and have structured Pay Scale according to labour
market and competition within the hospitality industry of Pakistan.
The compensation for executive and secretaries is negotiable
depending on the abilities and performances.
The main objectives sought through effective compensation
management at Askari Commercial Bank are:
* Compensation needs to be high enough to attract applicants.
* Retain present employees.

* Compensation management strives for internal and external

equity.
* Comply with legal regulations imposed by government.
HEALTH AND SAFETY
A monthly health and safety meeting held at Askari
Commercial Bank. Chief Manager presides this meeting and discuss
any accident if happen in preceding month.
Measures in future to avoid these type of accidents.
Working hours = 48 hours per week.
Sick leave = 8 days
Casual leave = 10 days
FEATURES OF COMPENSATION SYSTEM AND SOCIAL
SERVICES
* Fixed salary
* Overtime is paid according to Government rules and
regulations i.e. double on Gazetted holidays.
* Group Insurance scheme is practiced for the compensation of
two objectives:
i) Accidents
ii) Injuries
* Employees old age benefit scheme.
* Gratuity scheme.
* Bonus is awarded (Minimum one bonus in a year)
* Monthly Medical Allowance

* Social Security services are obtained for employees.

MANPOWER PLANNING
In Askari Commercial Bank basic purpose for which HRD in
relation to HRP serves are as under:
1. Balancing the cost between utilization of plant &
manpower:
This theme involves comparing costs of these two resources
in different combinations and selecting the optimum.
2. Determining recruitment needs:
It is an essential prerequisite to the process of recruitment. It
means that HRD unexpected shortages, wastage, blockages of
unexpected shortages, wastage, blockages in promotion flow and
needless redundancies.
3. Determining training needs:
HRD plans fundamental training programmes for which it is
necessary to assess not only quantity but also quality in terms of the
skills required by Askari Commercial Bank.
4. Management Development:
HRD provides succession of trained and experienced manager
which is essential to the effectiveness of the organization and this
depends on accurate information about present and future
requirements in all management level in Askari Commercial Bank.
5. Industrial Relation:
In Askari Commercial Bank plan are made on the assumption
about productivity and the human resource implications of mergers,

acquisition and divestment decisions that have an impact on Askari

Commercial Bank's industrial relations.
A system of HRP in Askari Commercial Bank:
A system of HRP in Askari Commercial Bank has some
specific points on which Banking Act.
1. Defining or redefining organizational objectives.
2. Determining and implementing the basic requirement to sound
planning.
3. Assessing future requirements to meet objectives.
4. Assessing current resources and availability of resources in the
future.
5. Producing and implementing the plan in detail i.e balancing
the forecast for demand and supply related to short term and
long term time.
6. Monitoring system and amending as indicated.
EVALUATION OF HRD PERFORMANCE
HRD of Askari Commercial Bank is working very well. Such
as planning, managing people, resulting people, its objectives and its
mission, guiding principle are very good and helping in overall
organization.
Managers of HRD are expected to organize and to be
accountable for the work of other people. In this process, managers
act as employers as such they create and sustain the employment
relationships of their organizations. The occupation of HRM

specializes in technical skills of managing this employment

relationship. In the Askari Commercial Bank specialist management
has engaged. After we have seen how different models of personnel
management have developed, and it shall explore the
interdependence between activities which make up the personnel
function of managements by looking at how these activities
interlock as a "System in form of HRD".
REASONS FOR HUMAN RESOURCE PLANNING
The formal personnel planning is essential for "System in form
of HRD" because it is moderate to large in size, that experiences
changes in technology, products, markets and utilizes a lot of high
talent personnel. Following are specific reasons for which Askari
Commercial Bank management is carrying on systematic human
resource planning.
1) Future Personnel Needs:
2) Coping with Change:
3) High-Talent Personnel:
4) Strategic Planning:
5) Equal Employment Opportunity:
6) Foundation for Personnel Functions:
THE PLANNING PROCESS:
Planning for human resources is tied in with overall Askari
Commercial Bank long range planning. The process of planning in
itself forces management to think through objectives of firm and

people problem relating to achieving those objectives through

planning.
1) GOALS AND PLANS OF ORGANIZATION:
Human resource planning is a part of overall strategic
planning for Askari Commercial Bank. A personnel vice-president
and his staff cannot make useful plans for period of one or three or
five years, unless they have data on possible corporate expansions
new products, new plants, new markets and so on. Important steps
involved in overall planning for Askari Commercial Bank are:
1. To analyze and evaluate environmental influence.
a) Political trends and legislation which will have impact
upon the business.
b) Economic conditions such as competition inflation, rate
of change in gross national product and unemployment
level.
c) Social trends in leisure time, consumer tastes, work
values and retirement.
d) Technological advances affecting enterprise.
2. To identify the values and aspirations of Askari Commercial
Bank's directors and executive.
3. To identify and evaluate the internal strengths and weaknesses
of the enterprise.

4. To develop a strategy which relates the strength of the bank

and aspirations of executives with opportunities perceived in
environment.
5. To create specific enterprise objectives and plans for
achieving these objectives.
6. To prepare plans for the functional areas of the business;
production, finance, marketing, research and development and
personnel.
7. To communicate with members of the organization and
involve them in planning process.
8. To evaluate progress toward implementation of plans and take
corrective action where necessary.
PLANNING PERIOD:
The extent and rapidity of change in the forces affecting the
business determines the utility of forecasts into the future. Askari
Commercial Bank's planning period is from 3 years to 5 years.
Period for three year is short range and of five years is long range
period.
2) CURRENT HUMAN RESOURCE SITUATION:

The second phase of the planning process for Askari
Commercial Bank is the preparation of an inventory of personnel
presently within the organization. This is also called a skills
inventory or manpower information system. A skill inventory

consists of up-to date information regarding the qualifications of the

selected categories of personnel. The skills inventory has several
important uses.
1) After preparing human resource forecast, Askari Commercial
Bank compare, the number, types and skills specified by
forecast with the present baseline or current position given by
skill inventories to as ascertain what skills must be developed
from present personnel via training, up grading and special
development efforts.
2. Other use is to identify talent within the organization for
specific job opening.
3. An up to date skill inventory is valuable for the preparation of
rosters of qualified technical and managerial personnel.
4. An inventory can be used in conjunction with an affirmative
action programme to monitor progress toward meeting
employment goals.
5. And finally the existence of a skills inventory enhance the
opportunities for employees to satisfy their career through
development and promotion.
Skill inventory contain many information but some of them
are as
- Personnel data
- Education
- Employment History

- Performance and potential

- Career goals.
COMPUTERIZED SYSTEM:
Askari Commercial Bank along with manually prepared
Human Resource Data card also use computerized system to handle
data. The computer can readily provide a printout of the age
distribution of all mangers by level, job, and department.

SALARY ADMINISTRATION
* All confirmed employees are allowed annual increments in the
month of July.
* All normal increments are granted to employees who have
completed one year with the bank. If service is less than one
year then increment is granted in proportion of the length of
service during the year.
* Full normal increment is equal to the time scale of the grade in
which the concerned employee is placed.
* An employee can only be promoted when there is a vacancy in
the higher cadre of the organizational chart or position in
which he is working is being upgraded.
* Merit shall be the only criteria for promotions. Seniority will
be taken into consideration only when every thing else is
equal.
* Promotion shall normally be considered at the time of granting
the increments i.e. 1st of July. In case of an opening that needs
to be filled immediately; the head of department shall initiate
the case to P & A.
* Up to supervisory level employees, General Manager
concerned and General Manager (P&A) shall decide.
* In order to give importance to the event, the employee
concerned shall also be interviewed.

* For promotion of officer cadre and above, on the receipt of

case, General Manager (P&A) shall arrange a meeting of
Management Committee where the candidate may be
interviewed.

INDUSTRIAL RELATION
The reality of most organizations is that people hold a
multiplicity of personal objectives. There would seem to be some
truth in the claim that employees really work for material and
psychological satisfaction. They can achieve and that their work is
therefore an instrument used toward their own needs.
DIFFERENT TYPES OF DISPUTES IN ORGANIZATION
There are some signs of disaffection with organization such as
strikes, confrontation leading to lockouts and various forms of
withdrawal of cooperation by staff in furthermore of their claims.
And other conflicts such as poor training, turnover, absenteeism. But
management tries to solve all disputes and conflicts. But the typical
conflicts which are taking place in the organization are overtime
bans, working to rules, refusal to use new machinery have all seen in
different sectors of Askari Commercial Bank.
To solve all disputes Askari Commercial Bank, management
take action which are very right and then all the employees are
happy ad are more committed to their work.
ROLE OF HRD IN SOLVING PROBLEMS
Different conflict resolution starts with a careful diagnosis of

the causes of the problem. And all the times HRD plays an
important role in solving there problems. It is then the responsibility
of the manager of HRD to apply an appropriate procedural,

structural or personal solution or some combination of all three. But

the manager of Askari Commercial Bank has a greatest assets in
resolving conflicts will be his or her own preparedness to adopt a
pluralist stance, and the interpersonal skills which he or she can
bring to bear supplemented by -- honesty and pragmatism. But HRD
performs following chief roles.
* Supportive behaviour on manager's part.
* A work group problem solving.
* To design job techniques in such a way that gives satisfaction

for individual and opportunity for improving performance.
* To overcome lack of commitment to work.

SYSTEMS OF COMMUNICATION
1. Open Door Policy: Askari Commercial Bank manager's door
is always open to employees. It provides continuous invitation
for employees to come in and talk about everything that is
troubling them.
2. Effective communication: In Askari Commercial Bank can be
judged with.
Informal discussion
Meeting with manager
Formal meeting

TERMS & CONDITIONS OF EMPLOYMENT

The term `employee' as use in the rules, regulations and
benefit plans enumerated covers all non-unionised employees i.e.
Junior Officer upto Managing Director
The bank reserves the right in its discretion to modify, alter or
discontinue any rule, regulation or plan.
These rules, regulations and plans further clarify the
conditions laid down in the employment letter and cannot be
interpreted contrary to or outside the scope of the specific the terms
of the employment letter signed and accepted by the employer.
ALLOCATION OF PERSONAL NUMBER & ISSUANCE OF
BANK IDENTITY CARD
The bank will allocate a Personal Number to all new
employees on joining. This number is to be quoted in all future
correspondence for all purposes from then onwards.
The bank will also issue a bank Identity Card to the employee.
If the card is lost the matter should be reported to Human Resource
Division immediately and a duplicate will be issued. The cost of
replacing the card shall be deducted from the salary of the concerned
employee the following month.
PROBATIONARY PERIOD
The period of probation is six months which may be extended
at the description of the management.

During this period, the employee will not be entitled to avail any
leave, benefits of the medical scheme, coverage under Group
insurance Policy and member ship of the Provident and Gratuity
Funds except coverage under the Accident Insurance Policy.
During probation an employee's services are liable to
termination without notice or any payment in lieu thereof. This term
shall apply to either side.
DUTIES AND OBLIGATIONS
Every employee is required to discharge his duties and
obligations honestly and diligently, and to observe strict secrecy
concerning remuneration, performance rating, increments or other
terms of service and/or business affairs of the bank whether in
relation to other employees, companies, firms, institutions or third
parties engaged in business with the bank. The bank has discretion
with regard to the duties to be performed by an employee in keeping
with the terms of his appointment.
An employee shall devote the whole of his time to the
business of the bank and not be engaged, interested or concerned
with any other business or commercial activity of any kind
whatsoever, whether directly or indirectly without the prior written
consent of the bank, nor to publish any book, brochure or pamphlet
or to contribute any article/communicate to any newspaper or other
publication whatsoever whether for remuneration or otherwise.
COMPENSATION AND BENEFITS

On the successful completion of the probationary period an

employee's services will be confirmed in writing and then an
employee will be entitled to avail benefits of:
> Medical scheme
> Leave Entitlements
> Coverage under Group Life Insurance
> Membership of Provident Fund
> Gratuity Fund
> Pension Fund (Wherever Applicable)
As specified under each benefit plan.
SALARIES, INCREMENTS AND PROMOTIONS
Salaries are disbursed to all employees on the 26th of the
month or, if a holiday, the next working day.
Salaries are remitted directly to the Bank Account and it is therefore
necessary that details of Name, Account Number, Branch and Place
should be intimated to H.R.D/S.P.C. on joining or if any change
occurs.
No advance against salary is given by the Management.
TRANSFERS
The Headquarters of all employees as mentioned in the letter
of appointment is subject to change at the discretion of the
Management in which event an employee will be required to work
anywhere in Pakistan as Headquarters with no extra remuneration
and /or allowance or compensation whatsoever in the salary

structure. In case of a transfer, an employee will be entitled to the

following transfer benefits:
I) Air-conditioned Coach train fare or air passage as per
entitlement for himself and his immediate family to the place
of transfer.
II) 14 days upcountry allowance (Boarding & Lodging
allowance) as per entitlement in the travelling scheme.
For single employees, reimbursement is at a flat rate. The
amount allowed will be specified in the transfer letter served by the
Management.
In cases where the Management has initiated the move, it can
at its discretion, allow a higher ceiling/additional benefits.
LEAVE: ENTITLEMENTS & RULES
CONFIRMED EMPLOYEES
All confirmed employees are entitled to leave according to the
rules and regulations stated below:
i. CASUAL LEAVE
Ten days with pay in a calendar year, at the discretion of the
Management.
Casual leave in meant to meet urgent and/or unforeseen
circumstances. Prior approval of the Management has to be obtained
whenever possible, stating the reason for leave. In case of
emergencies, an application in support of availed leave must be
submitted the day the employee resumes duty.

a) Casual leave may be allowed to be availed at one time for a

maximum of 3 days and shall not normally be combined with
any other leave, holidays and /or public holidays. In case of
natural calamities or absolute emergencies or of serious illness
or death in the family or of a close relative, special sanction
for combining of leave may be given by the Management.
b) Causal leave shall not be accumulated and carried forward
beyond a calendar year.
c) Casual leave may be allowed in continuation of Sick Leave in
cases where sick leave in exhausted and further leave is
recommended by the Doctor.
ii. SICK LEAVE
The entitlement is 14 calendar days in a year. Sick leave if not
availed during a calendar year may be carried forward but the total
accumulation of Sick leave shall not exceed 28 days at any time.
a) Any application for sick Leave which exceeds 3 days should
be supported by a medical certificate from a registered
practitioner.
b) The management may at its discretion have any employee
examined by the bank Doctor and the advice of the Doctor
shall be final, for the purpose of granting leave to the
employee.

c) If sick Leave is availed on Thursday and also on the following

Sunday, such leave will be counted for four days and a
medical Certificate should accompany the leave application.
d) In case of prolonged illness, where the required leave exceeds
the entitlement, the adjustment of leave beyond entitlement
may be made against C/L or P/L, or be granted as a special
sick Leave at the discretion of the Management.
iii. PRIVILEGE LEAVE
The P/L entitlement for all employee is as follow:
For the 1st completed year of service 3 weeks (21 Calendar days).
For 2nd to 5th completed year of service or part thereof 4
weeks (28 Calendar days).
For 6th year onwards- 5 weeks (35 Calendar days)
a) An application for P/L shall be submitted to the Human
Resource Division duly recommended by the concerned
Superior, a minimum of 14 days before commencement of
leave.
b) A minimum of 2 weeks P/L pertaining to one year has to be
availed in order to receive Leave fare Assistance for the year.
According to the profit of the bank, a maximum of 1 month's
basic salary could be allowed as LFA subject to approval by
the Management. However, as minimum LFA, a fixed amount
will be paid.

According to the Income Tax Rules, 1982, where free or

concession passage for travel is provided to an employee,
there shall be included in the income of the employee "where
the passage is provided in accordance with the terms of
employment, an amount equal to the sum by which the cash
payment if any, by the employer exceeds the actual
expenditure enoccured by the employee".
In order to substantiate the claim for reimbursement a
Travelling Expense Statement along with prof of travel such
as air-train thickets for self and family may be submitted to
Staff Payment Cell on resuming duty.
c) Leave will always be adjusted first against any remaining
balance of a previous year before being adjusted against the
current year's entitlement.
d) If privilege leave is cut short by any employee on his own
accord or by the concerned Department Head, due to exigency
of work, a note should be sent to Human Resource Division
immediately on resumption of duty for adjustment of leave.
e) If leave fare assistance was received by the employee and due
to early resumption of duty he does not qualify to receive it,
leave fare assistance will have to be refunded in case the
balance leave for the year in below 14 days, Leave fare
Assistance need not be refunded.

f) Prefix and suffix of weekly/gazetted/other holidays to

Privilege Leave will be allowed and as such will not be
counted as Privilege Leave. However, should any holiday fall
during the leave, it will be counted as Privilege Leave.
g) Privilege Leave for any year if not availed by 31st December
of the following year, will automatically lapse. Therefore, on
accumulation of leave will be allowed beyond the current year
and that of the preceding year's balance. No encasement of
leave will be allowed.
h) The management reserves the right to refuse any leave if the
exigencies of business so require.
iv. MATERNITY LEAVE
Maternity Leave will be allowed to the concerned employee
for a period of 12 weeks (85 Calendar days) for each case.
Application for the period of leave should be submitted well in
advance.
PROBATIONARY EMPLOYEES
During the probationary period of any employee there will be
no entitlement to any kind of leave, be it Casual Leave, Sick Leave,
Privilege Leave or Maternity Leave.
Sick Leave if required, will be approved as a very special case only
if supported by a Medical Certificate from a registered medical
practitioner.
Any other leave if availed, will be treated as without pay.

However, on confirmation if the employee so desires, the

leave may be adjusted against his entitlement and the deducted
amount refunded.
LOAN POLICY
The bank guarantees loans for car and scooter/ m otorcycle.
1. Application under the Loan Policy, which are duly
recommended by the concerned Division/Department Head,
should be forwarded to Human Resource Division for
processing. Applications will be approved subject to
availability of Funds at the concerned Banks.
2. As per the Bank's Policy for financing loans, the vehicle
should be jointly registered in the name of the Bank and
employee. The employee will be entitled to have to transferred
in his name only after bank has certified full clearance of all
dues.
3. All employees will also have to take out a comprehensive
insurance policy for the vehicle in order to avoid monetary
loss in case of accidents.
4. Since the bank stands Guarantor of all such loans, in order to
safeguard its own interest, the employee will execute a counter
guarantee in favor of the bank, guaranteeing the full an final
settlement of the loan at any time on demand by the bank or in
case the employee ceases to be in the service of the bank for
any reason.

These are normally given to employees involved in actual sales

only.
Repayments:
Repayment of the loan will take place within a maximum
period of 48 months. This repayment may also be made within a
shorter period through accelerated recovery, if an employee requests
this or by means of a lump sum payment.
Fresh Loan:
The employee may apply for a fresh loan not earlier than four
years after he has received the first loan which should be full paid
off by that time.
However, he may decide to use the vehicle for a period longer than
four years under the same scheme.
Mileage:
The mileage scheme of the bank is based on a repayment
schedule of 48 months with a minimum mileage of 1,290 kilometers
and maximum mileage of 2000 kilometers per month. However, the
actual mileage claimed by the employee depends on the mileage
recommended by the Division/Department concerned, of which the
employee will be informed by H.R.D. The same rate of mileage is
also applicable in cases where a car is bought on his own without a
bank loan and for use of the car after repayment of the loan.
CAR LOAN FACILITY

The bank has decided to adopt a policy for granting bank

guaranteed loans for purchase of a car to all assistant managers
irrespective of whether they are involved in sales.
Those Assistant Managers who avail this facility can apply for
a mileage for the instance from residence to office and back. In case
a mileage is sanctioned the pick & drop facility presently enjoyed at
the Head Office and retional or zonal office will be withdrawn.
Out of this sum the owner of the vehicle has repay the
principal amount along with interest thereon, taxes, comprehensive
insurance and all repairs for the car as well as gasoline, oil and all
other expenses.
It is foreseen that occasionally large repairs for these cars may
be necessary. Then the owned of the car will have a problem to pay
for such repairs. For this reason, the bank will keep back a certain
amount from the mileage money towards a repair fund which will be
built up through monthly deduction of installments. Deduction will
start from the 13th month of the loan which will be retained by the
bank from the employee's salary. This fund will be at the disposal of
the car owner for any large unusual expenses like repairs, yearly
insurance etc. If this fund is depleted, ductions per month will start
again till the fund is replenished.
This fund will be an interest bearing fund and the rate of
interest will be 12% per annum. At the end of four years/settlement

of loan, whatever balance plus interest is in the fund will be handed

over to the individual.
Authorized absence:
In case of authorized absence exceeding 15 days (leave, bank
trips, inside/outside the country etc.) there are two options open to
the employee (those who are getting standard mileage):
1) He may deduce to leave the car with the bank in which case
the bank will pay the proportionate loan installment s to the
bank without charging it to the employee but no other
payments whatsoever. The car will be garaged by the bank and
will not be used.
2) In case the employee decides to retain the use of the car, the
bank will not pay any mileage or other dues for the time of his
absence.
If an employee has been granted excess mileage also and is on leave
in any month, and has not worked the full month (no
consideration of casual or sick leave for a day or two) then the
mileage payable to him will be calculated on a prorate basis.
The normal as well as excess entitlement, if any, will be
prorated and the concerned rates applied.
TRAVELLING SCHEME
All official arrangements for employees whether at Karachi or
upcountry will be made after prior approval.

A travelling advance may also be taken by the concerned employee

keeping in mind, the entitlement and the length of stay planned. For
this purpose an advance form may be filled in, recommended by the
Division/Department Head and forwarded to Human Resource
Division for approval.
A travelling expense statement should be filled in & submitted
to Human resource Division/Staff payment cell in order to
substantiate the claim the travel expenses immediately on return
from the tour.
Breakup of Boarding Allowance:
Breakup 15%, Lunch and dinner 30%, each Misc. 25%.
a) 100% Boarding will be allowed in case if absence from the
Headquarters for 12 hours or more.
b) 50% boarding will be allowed in case of absence from the
Headquarters for 6 to 12 hours.
FOREIGN TRAVEL
In case of foreign travel, rules and regulations of the State
Bank of Pakistan will apply. Claims can be made according to he
Daily allowance prescribed for different countries by our principals.
The administration division and Human Resource Division
should be informed by the concerned Division regarding any
planned visit abroad by any employee. All official travel

arrangements will be made by the bank and a traveling advance may

also be taken and substantiated as mentioned above.
i. TRANSPORT
ii. LODGING
These costs can be claimed in two ways only:
a) Global, to the extent of the Daily Allowance entitlement.
b) Against actual, in case the cost of preselected hotels surpasses
the global amount.
MATERNITY
Subject to a maximum of two deliveries only during the entire
length of service. 90% of maternity bell will be reimbursed, upto a
maximum expenses limit under this head or one basic salary, which
ever is higher, on each delivery.
Employee may apply for an advance if necessary. An
additional payment will be allowed for caesarian cases. The bills
claimed under this head should pertain only tot he actual period of
confinement and not to pre and post delivery expensed , which
should be claimed against the annual entitlement. No payment will
be made for pursing charges, diet charges or any non-medical items.
Here again the maximum limit of each hospital pertaining to
room charges will be as stated above, in case of bills which exceed
the entitlement of one basic salary.
Bill received after 15th of any month would be paid along
with the salary of the subsequent month. Accumulated bills will not

be entertained. In case of continued treatment part bills can be

submitted or intimation given in writing to Human Resource
Division of such treatment, so that the employee is allowed to
submit accumulated bills.
Expensed relating to Herbal treatment,t dentures, gold fillings,
spectacles and cosmetic surgery will not be entertained.
HOSPITALIZATION
In those cases where admittance to hospital is required total
hospitalization expenses, which include Doctor's fees, X-Ray
charges, Medicines, Laboratory charges etc., will be reimbursed by
the bank at its description against proper receipts. No payment will
be made for nursing charges, diet charges or any non-medical items.
INSURANCE PLAN
The bank has made arrangements to provide adequate 24 hour
insurance coverage of all its employees in case of death or
permanent disability while at work or travelling or at home.
i. PERSONAL ACCIDENT POLICY
Coverage is provided to all employees, probationers as well as
confirmed employees, against any bodily injury caused by
accidental, external and visible means, which injury shall solely and
independently of any to the cause result in the death or permanent
total disability of the insured. In the case of death of an injured
employee, the bank will pay the amount received from the insurance
bank to the employees nominated beneficiary.

The benefits of this plan with the limits of Compensation are

as follows:
1. Death only 100% of sum insured
GENERAL
The bank reserves the right to refer any person to the bank
Doctor as and when deemed necessary to scrutinize all medical bills
and to reject payment of factious bills, if any.
Any misuse of the medical scheme by an eligible employee,
would be liable to strict disciplinary action.
Medical Expenses
Under this plan employees are covered for the medical
expenses incurred on account of hospitalization and treatment,
resulting due to accidents only, for a maximum period of 52 weeks
after the date of the accident.
Under this policy it is necessary to report an accident to the
insurance bank immediately followed by the claim forms which are
filled in to substantiate the claim. All employees must therefore
report any such accident immediately to their Division/Department,
with a copy to H.R.D. within 24 hours.
ii. GROUP LIFE INSURANCE POLICY
All confirmed employees are also covered under this policy. If
an employee dies, while insured under this policy, the insurance
bank will subject to provisions of the policy, immediately upon
receipt of due proof in writhing of the death of the employee, pay

the amount for which the employee is insured, which will be paid by
the bank on receipt from the insurance bank to the nominated
beneficiary. This is in addition to the accident insurance.
2. permanent disablement:
i) Permanent total loss 100% of sum insured of both eyes or of
two limbs.
ii) Permanent total loss 75% of sum insured of one eye and of
one limbs.
iii) Permanent total loss 50% of sum insured of one eye of one
limb.
iv) Permanent total 10% of sum insured of the finger or thumb or
toe.
SEPARATION OF SERVICE
i) CONFIRMED EMPLOYEES:
a) An employee's service can be terminated on three months
notice in case of a manager or level above that and one
month's notice in case of a junior Officer, Senior Officer and
Assistant Manager or pay in lieu thereof. This term shall apply
to either side. It is however understood that no notice is
required in case services are terminated on grounds of
misconduct, willful neglect of duty, breach of trust or any
other dereliction of duty or misdemeanor prejudicial tot he
interest of the bank. It is further understood that any financial

indebtedness of the employee standing to the detriment of the

bank's prestige will amount to a very serious misdemeanor
towards the bank.
b) If in the course of an employee's service, the employee suffers
from any serious ailment or permanent disability of any kind
which in the opinion of the management may or is likely to
interfere with the due performance of duties, the employee's
service may be terminated at the discretion of the management
by giving notice as mentioned above, or payment in lieu
thereof as the bank may deem fit.

Terms of Employment: -
The following are four categories of employment in Askari
Commercial Bank Limited;
1. Regular Employment;
2. Probationer Employment;
3. Contractual Employment;
4. Temporary Employment; and
5. Casual Employment.
Regular Employment: -
These are the employees which are after the final selection
employed for a regular period. These employees enjoy all the benefits
such as annual gratuity fund, Retirement benefit and after the retirement,
pension etc. Usually managers and supervisors fall in this category.
Probationer Employment: -
When an employee is selected for some post, he or she undergo for
the probation period of 6 months normally. However for the management
cadre, it can be less than 6 months. When the probation period is
completed, a contract is signed by the employee with personnel manager.
Contractual Terms: -
There are three major considerations;
 Employment is temporary in nature.
 The person should be of age 60 or above.
 Duration of employment contract is one year and
renewable.

When the bank management feels that the person retiring from the job
have enough capabilities and potential to work more in the benefit of the
organization, then sign this type of agreement with the retired employee.
Employee form the top to bottom can be included in this type of
employment terms.
Temporary Workers: -
Employees of cadre of workers and supervisors are hired for a period of
6-9 months according to government rules on temporary terms of
employment.
Casual Workers: -
It is concerned with the daily wages workers. When the company
requires the workers urgently, they employ the casual worker to fill the
vacancies.
Apprenticeship Training: -
According to government regulation, Banks have to hire the apprentices
against the regular scheme.
ACBL is not bound to give regular jobs to the apprentice trainees.
Sources of Employment: -
When the Personnel Department has projected the human resource
demand in future, then the concern for the personnel manager is filling
projected openings. Askari Commercial Bank Limited uses these two
main sources of filling these employment openings;
1. Internal Sources;
2. External Sources.

Internal Sources: -
For this purpose, two types of documents are maintained about the
employees in Askari Commercial Bank Limited.
1. Skills Inventory Chart ( for non managers)
2. Management Inventory Chart (for manager cadre).
These inventory documents catalogs each employees
skills and
Abilities when there is need of new job, internal employees can go for
this job. Personnel managers are responsible for internal job placements.
Another internal source is employee referrals.
External Sources: -
Not every future opening can be filled with present employees. For some
jobs, they have to fill the vacant posts by outside people. Some jobs are
entry level jobs, so there is a need of external sources of human
resources. The following are the external sources of employment for
Askari Commercial Bank Limited.
i. Advertisements.
ii. Universities.
iii. Management trainees.
iv. Apprentices.
v. Internees.

Performance Appraisal: -
The performance of the employees at Askari Commercial Bank Limited
is appraised on the basis of Annual Confidential Report. A Performa is
made by the head office and is sent to immediate superior for filling
about different characteristics necessary for the job.
Different types of performance appraisal are issued for evaluating the
performance of the employees in Askari Commercial Bank Limited
working in different categories. In Askari Commercial Bank Limited, the
performance of the employees is evaluated on the graphic or linear
method.
Salary: -
Askari Commercial Bank Limited needs for its operations highly
qualified, experienced, dedicated, and motivated staff with a carried mix
of operational and technical skills. Salary of an employee is determined
by a competent authority according to the grade.
Askari Commercial Bank Limited tries it best to keep the staff fully
satisfied and provide them with perfect career paths. The employees are
paid well so that they can maintain reasonably decent living and are
motivated to work as bank’s employees.
The employee compensation at Askari Commercial Bank Limited caters
both direct financial payments and indirect financial payments. The pay
scale is determined on the compensable factors and on the decision
making ability for the managers and executives. Allowances, which are
given to employees other than the basic pay, are as follows:
 House Rent Allowance.

 Utilities Allowance
 Technical allowance.
 Traveling Allowance and Daily allowance.
Fringe Benefits: -
In Askari Commercial Bank Limited, following benefits are offered to
the employees.
 Medical Facility.
 Facilities at residence.
 Grants of incentives for improving qualification every year.
 Cash prizes.
 Increments (Annual increase in pay)
 Bonuses.
Indirect Compensations: -
Askari Commercial Bank Limited offers four types of indirect
compensation to its workers.
 Employee insurance scheme
 Providing funds
 Gratuity scheme.
Pay Plans and Incentives at Askari: -

Establishing Pay Rates: -
For establishing the pay rates, first step is to conduct the salary surveys.
The Salary Surveys: -

For the purpose of conducting salary survey, Askari Commercial Bank

Limited is taking help of The Ferguson firm which conducts surveys and
researches in the field of marketing and finance. Moreover, the bank’s
managers are well informed about the pay and salary structure for the
candidates to be hired in case of hiring. This external survey by Ferguson
is conducted once in two years. Complete documented information is
being delivered to the bank so that the pay scales do not vary from the
market rates.
Job Evaluation: -
Evaluation of the job performance is done yearly. The purpose is to see
and identify the employees who have done their respective work well
through out the year considered and who have not been able to show
good performances.
The job evaluation committee does it and as a result the yearly bonuses
and allowances are given to appreciate the employees who have done
really well. Three kinds of forms help in evaluating the employees.
Pay Plan at Askari: -
Pay plans at Askari are established on the basis of job rating. All jobs are
ranked from top to bottom, on the basis of compensable factors.
Employee with higher rank gets higher salaries and incentives. Askari
Bank has its own criteria for establishing pay rates.
The Human Resource manager said that mostly employees are paid on
the basis of skills they have. HR manager believes that competency and
skill based pay can increase motivation and employee commitment. But

more often employees are paid on the basis of their jobs. Their pay is
based on job or skills.
Skill Based Pay: -

Generally, pays in Askari Commercial Bank Limited are given on the
level of performance and at times on the nature of the job. Skill based
pay is given to employees for the recognition of their knowledge,
decision making, problem solving abilities and competency of efficient
and effective working in their jobs.
Variable Pay: -
Variable pay is a group incentive plan that ties pay to some measure of an
organization’s overall profitability. When the bank performs or the
branch of the bank performs spectacularly in terms of profitability for a
particular year, the whole branch is given a variable pay.
As variable pay is a team effort, every branch wants to excel this way.
This adds good name to the bank and its particular branch and the work
force of that particular branch becomes role model for others.
Compensation Plan: -
Compensation plan for Askari employees involves following things;
 Basic Salary;
 Bonuses;
 Allowances;
 Reimbursements;
 Short term Incentives;

 Long term Incentives.

Basic salary involves fixed compensation paid regularly. Bonus is given
to times in a year to managers and professional employees, percentage of
which lies from 80% to 100%. Allowances and reimbursements are short
term incentives.
Askari Commercial Bank Limited has also several incentive plans,
including individual performance awards and bonuses, team awards.
Incentives for the Employees at Askari: -
Employees at Askari are paid basic salary as well as some sort of short
and long term incentives. Individual incentive programs are launched at
Askari to give income over and above basic pay to individual employees
who meet specific individual performance standards.
Incentives for Managers and Executives: -
Managers and executives play a central role in influencing divisional and
corporate profitability. Askari Commercial Bank Limited puts
considerable attention towards their rewards. Most managers get short
bonuses and long term incentives in addition to salary.
Askari Commercial Bank offers stock option to its managers as the long
term incentives. The purpose of stock option is to motivate and reward
management of the bank for long term corporate growth, prosperity and
shareholder value.
Bonus: -
Along with the basic salary, bonuses are given to managers two times in
a year. The percentage of bonus is 80% and sometimes 100% to their
pay.

Allowances: -
House rent and Utility allowance are also given to managers. Managers
are paid 42.5% and 10% of their incremental pay as house rent and
utilities allowance respectively. 10% of the salary is given to as medical
facility, and for the general utilities like telephone 10% of the salary is
also being given to the utilities. So the overall salary comes to a higher
level including all these cash and other benefits.
Reimbursements: -
Reimbursements for medical, telephone and petrol expenses are also
given to managers and executives.
Incentives for middle and lower level Employees: -
Middle level employees and professionals are also paid bonus,
allowances, and reimbursements along with their basic pay. Lower level
employees like peon, driver, and technicians are paid dearness allowance,
house rent allowance and medical allowance along with their basic
salary. The incremental stages for these employees are +30, where as
others have +25 stages in their jobs.
Ensuring Accuracy & Authorization: -
The following payments shall be made in the routine, with such
additional payments as the management may direct from time to time:
Medical Reimbursement: -
Medical reimbursements are made to staff and executives of the bank
according to the bills presented by them. What to be done and how to

reimburse the medical expenditure is shown in the required action

section.
Claims for Traveling allowance and Daily allowance: -

(TA,DA)
Allowances are given to the employees for the traveling of the executives
from one city to another or abroad, all the expenditure is on the bank,
daily expenditure can also be recovered through claims.
Required Action: -
 Ensure the amounts claimed are in accordance with the prescribed
rates.
 Check accuracy.
 Check authorization.
 Ensure completeness of claims.
Fuel and Lubricants: -
The bank also provides free traveling facilities to its employees by
paying amount against the consumption of fuel dependent upon their
respective ranks. It is of two types;
1. Reimbursement to executives;
2. Official Expenditure.
Required Action: -
Refer “employee related” and inform to the bank.
Office Expenditure: -
 PTCL connections.

 Corporate connections
 Mobile phones and connections
 Reimbursements to executives.
Salary Disbursement: -
 Payments to regular staff
 Payments to contractual staff
 Arrears payments
 Bonus payments.
Insurance: -
Life insurance and car insurance are some of the benefits which are also
given to the employees and more precisely to the managers and to the
executives.
Required Action: -
 Group insurance
 Life insurance
 Vehicle’s insurance of the employees.
 Bank’s owned vehicles.
 Leased vehicles.
Disbursement Procedure: -
The payment consists of mainly two categories mentioned below:
Indirect Payments through main office account: -
This will include payment advice to other branches using IBCA in
respect of expenditure pertaining to Head Office but the payee record to
be maintained at branch.

Required Action: -
 Ensure payment request contains management approval for such
arrangement of payments
 Ensure proper document i.e., IBCA in blue is used.
 Send complete set of payment support along with IBCA to branch
other than RWP branch for Head Office’s request for cash
payment.
 Enter IBCA in ‘advice out register’ in a chronological order
showing initials.
Direct Payments: -
These payments should be made using IBCA to Rawalpindi branch with
an instruction of either payment of cash o issuance of demand drafts,
payment orders, foreign demand drafts, etc.
 Payments to staff
 Payments to third parties
 Payments to tax authorities
Required Action: -
 Enter IBCA in ‘advice out register’ in a chronological order
showing initials.
 Prepare covering letter containing detail of payments.
 Sign covering letter.
 Dispatch payment cheques under covering letter.
 Keep office copy of the letter along with counterfoil of cheque.

 Ensure tax is deposited in government treasury within the days of

with holding.
 Reconcile tax payments with balance of GL code.
 Fill in prescribed form of tax payment receipt.
 Deposit tax payment receipt along with cheque with State Bank of
Pakistan or National Bank of Pakistan.
 Safe keeping of acknowledgment chits issued by bank.
 Collect tax payment receipts on due date.
 Send customer’s copy of challan to supplier.
Preparation of Payroll: -
Performance of such steps helps in taking out information necessary for
preparation of payroll by considering the changes taking place during the
period of the payroll. Some of the vital steps have been enumerated
below, however, these should not be considered in totality and any other
suitable steps should be applied in a given situation.
Receiving and record keeping of the following documents pertaining
to employees as issued by Human Resource Division for the purpose of
accurate and correct preparation of payroll of Head Office:
a) Appointment Letters
b) Transfer letters-issued upon inter bank movement
c) Resignation advice-issued upon termination or dismissal
d) Leave without pay advice-issued where employee’s leave exceeds
his balance of entitled privileged leave
e) Employee confirmation letter for provident fund deduction

f) Advance rent deduction advice from salary of a specified

executive.
Fuel Reimbursements: -
a. Entitlement: -
Fuel reimbursements shall be made to executives based on actual claims
with the following maximum limits credited to specific employee on
monthly basis which can further be accumulated:
 President. 1000 liters.
 SEVP. 650 liters.
 EVP. 500 liters.
 SVP. 400 liters.
 VP. 350 liters.
 AVP. 150 liters.
b. Frequency of Claims: -
The claims for fuel reimbursements shall be made on following
frequencies but not exceeding Rs. 5000/- for each claim.
 President.
 SEVP.
 EVP.

 SVP.
 VP.
 AVP.
Record Maintenance: -
Maintain employee wise record of fuel entitlement.
Required Action: -
 Ensure separate sheet has been allocated to each executive
employee.
 Ensure that on the end of each calendar month the entitled limits
enumerated above have been credited to each employee.
 Ensure that entry on each sheet is a true representative of facts.
 Initial each entry.
 Calculate the entitlement on pro data basis in case of new
employees or outgoing employees.
 Get each entry authorized.
Procedure of Payment of Fuel Reimbursement: -
Check fuel reimbursement claim received from the executive employees.
Ensure claims are duly dated, signed by claimant and amounts are within
permissible limits.
Salary Compression: -
There exist the salary compression phenomena (but not to a large extend)
whenever a candidate joins the bank, as compared to the employees
working before him, the starting salary varies for all individuals who join
at different times.

Askari commercial Bank Limited pays extremely handsome salary to the

managers, and senior experienced individuals to whom they offer jobs.
They can be employees of some other bank, the purpose of attaining such
work force is to enhance the abilities and performance of the bank as the
banking sector is mainly dependent upon the competency of the
employees.
Askari Commercial Bank Limited is always aware of the competent
managers who are working for different banks. These prospective
employees are then offered jobs for the bank on much more higher
facilities what they are getting out of their current jobs. Experienced
individuals are given special consideration and priority while giving jobs
in open market.
For the individuals, who are recruited for the normal course of business
and have no impact on the decision making of the bank, their starting and
initial salaries are nominal and can be Rs. 500/- plus or minus from the
current pay level prevailing for that kind of job as compared to other
banks. After seeing the performance, the salaries are increased.
Whenever a new individual is hired for a managerial post, the base for
hiring is;
• Work Experience;
• Educational Background;
• Previous job appointment.
Secrecy of Overall Pay: -
Secrecy is a phenomenal factor which is not to be declared within the
colleagues working at same ranks. Askari Commercial Bank Limited

takes care of this matter so that no two colleagues become uncomfortable

and de motivated. The secrecy of overall pay includes basic salary plus
allowances plus insurance plus bonuses or any such monetary rewards
given in excess of the basic pay.
Required Action: -
Promotion: -
Promotions are an integral part of the job. Every employee is looking
forward towards its career path. In Askari Commercial Bank Limited the
promotions are given on the basis of superior performances. The
promotion occurs both in the ranks and in the salary structure.
Through proper career planning of the employee, Askari Commercial
Bank Limited is able to control the turnover rate of the employees.
Executives are of ages between 45-60and are given high class
standardized life style by the bank.
Transfers are also being done within the city and outside the city. The
purpose is to provide employees a better chance to excel in their area at
different locations and in different bank branches. Job rotation is also
being done. Traveling and transfer allowances are also given so that
employees get settled as soon as they join the duty.
Benefits and Facilities: -
The bank has provided various kinds of facilities to its employees which
includes staff hospitalization plan. The staff is exempted of the medical
charges to a certain limit, depending upon their rank and pay scale.
Transportation charges for the managerial and executive staff is on the
bank and the bank pays to the airlines, and travel agents, for this purpose

to make it possible for the upper management to move freely without any
hindrance to visit different branches in various cities so that the work is
continued without any problem.
The financing of cars and balloting of cars is something which attracts
managers. Moreover, the top management is given brand new cars
without any cost, fuel is also being provided by the bank.
House loan or loan for sickness is also available for the employees on
nominal interest rates, that’s make it easy for the staff to have their own
home.
Over the last two years, the salaries have been rationally revised and
increment of 15% is given to all. This is tremendous effort of the bank to
motivate all the employees of the bank.
Bank pays house rents of the managerial staff. The amount of rent is
dependent upon the salary the employee currently is having. The limit of
house rent allowance is 45% of the basic salary.

PROBLEMS AND RECOMMENDATIONS

HRD PERFORMANCE IN ASKARI COMMERCIAL BANK
The performance of HRD is evaluated as:
1. Carrying for the people: It is evident from the fact HRD of
Askari Commercial Bank arranged a program to get its
employees vaccinated against Hepatitis B.
2. Grievance procedure: Peer-review board to resolve grievances
this grievance procedure allows employees to make an appeal
upward beyond their immediate manager. It protects
individuals from arbitrary action by their direct manager and
encourages free communication about their problems.
3. Open Door Policy: Askari Commercial Bank manager's door
is always open to employees. It provides continuous invitation
for employees to come in and talk about everything that is
troubling them.
4. Effective communication: In Askari Commercial Bank can be
judged with.

Informal discussion
Meeting with manager
Formal meeting
MOTIVATION
HRD of Askari Commercial Bank has been very successful in
motivating its employees.
To motivate the employees, Askari Commercial Bank's
management gives special awards on meeting deadlines, great sales
introducing new product, good procurement participation is also
used as a tool of motivation because the employee considered a an
important source of motivation.
Although HRD in working very effectively but we have also
observed some problems in HRD.
INTELLIGENCE AND EDUCATION
The engineers clearly surpass non-engineers in educational
intelligence.
The engineers clearly surpass non-engineers in educational
intelligence and they have a sound educational background and also
they possess better problem solving ability.
PERSONALITY

There is a great difference of personalities between engineers

and non-engineer employees. Their tendency is to be much more
interested and involved in their work.
EXPECTATIONS AND COMPLAINTS

Scientists and engineers want from their job.
1. Freedom to publish and discuss work with other scientists.
2. A technically trained management.
3. An organization with scientific reputation.
4. Competitive salaries.
SUGGESTIONS BY EMPLOYEES
Suggestions are always encouraged but no extra award or
recognition is given to the employees if the suggestion or a creative
idea benefits the organization interms of reduced cost, increase in
profit etc.
CONCLUSION
In the this competitive environment, where Askari
Commercial Bank is facing tough competition with LG and other
multi national companies, HRD has been successful in retaining its
employees by off offering a clearly defined reward and incentive
system.

Recommendations and Suggestions: -

 Job description must be clear so that it can define the job related
duties and responsibilities. This helps the evaluator to identify
what thing comes in the scope of appraisal context. It means that
the evaluator must have the complete knowledge about job so that
every aspect of the job could be evaluated.
 It should also be clear that what is going to be evaluated. It means
that it must be understood what type of the job is going to be
evaluated.
 Ensure claim form has been properly filled.
 Check the amount of the claim with the support document and
ensure that the bills are true representatives of particular
expenditures.
 Ensure the payable amount is equal to or less than the outstanding
balance.
 Check authorization.
 Ensure proper allocation of General Ledger Code.
 Ensure amounts in the claims are in accordance with the prescribed
rates.
 Check accuracy.
 Prepare covering letter containing details of payment.
 Sign covering letter.
Hailey College of Banking & Finance, Punjab University, LHR.

 Dispatch payment check under covering letter.
 Keep office copy of the letter along with counterfoil of the cheque.
 Ensure tax is deposited in Government treasury within days of with
holding.
 Reconcile tax payments with balance of General Ledger Code.
 Fill in prescribed form of tax payment receipt.
 Deposit tax payment receipt along with cheque with State Bank of
Pakistan OR National Bank of Pakistan.
 Safe keeping of acknowledgment chits issued by the bank.
 Collect tax payment receipts within due date.
 Send customer’s copy of challan to supplier.
 Ensure approval of competent authority has been obtained.
 Ensure effective dates conveyed have been appropriately applied in
calculation of Salary.
 Ensure date of joining has been conveyed by Human Resource
Division.
 Ensure all other relevant information necessary for the preparation
of salary has been received.
 Keep separate file for each of the referred documents received.
 Inquire Human Resource Division regarding assignment of
employee to a specific division for the purpose of allocation of
expenditure to such Division keep complete file of advice received.
 Ensure accurate deduction from a salary of a specific employee.
 Ensure deductions start and end on due dates.

 Keep intact record of bank accounts of each employee of Head
Office.
 Ensure Basic Pay, Allowances and other perquisites as allowed by
the policy of bank have been accurately embodied in appointment
letter.
 Ensure amount of monthly deduction has been correctly calculated
and recorded.
 Ensure sanctions advised by a specific employee are correct and it
has also been correctly applied to the salary of such employee.
 License with Electronic Technology Division for upgrading.
 Due care to be exercised for correct and relevant information for a
relevant employee.
 Check data entered during the month with the source documents.
 Check cast and calculation of salary register.
 Perform analytical and critical review of salary register to ensure
that the basic allowances and deductions have been correctly
applied.
 Ensure withholding tax from each category of employees has been
accurately deducted after taking into account adjustments, if any.
 Prepare salary reconciliation statement.

 Take into account the salary credited in previous month and
account for the movements during the month to arrive at the total
amount if the salary credited for the month.
 Ensure separate sheet has been allocated to each executive
employee.
 Ensure that on the end of each calendar month, the entitled limits
enumerated above have been credited to each employee.
 Ensure entry on each sheet is a true representative of facts.
 Initial each entry.
 Calculate the entitlement on pro data basis in case of new
employee or outgoing employees.
 Get each entry authorized by a competent authority.
References: -
Web Sites: -
www.askaribank.com
www.sbp.org.net.pk
www.pkeconomist.com
www.punjab.gov.pk
www.coper/hrm.ca
Books & Journals: -
 Human Resource Management
(Gary Dessler)
 Human Resource Management
(Coper)
 Public Administration Research Center (1981). Islamabad
 Performance Evaluation Report Form (2000) Government of
Pakistan
 Journal of Applied Psychology. Pp 81,557-574.

Askari Commercial Bank Limited

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Human Resource Management of Askari Commercial Bank Limited.

INTRODUCTION OF THE ORGANIZATION

Hailey College of Banking & Finance, Punjab University, LHR. 1

Hailey College of Banking & Finance, Punjab University, LHR. 2

Hailey College of Banking & Finance, Punjab University, LHR. 3

Nature of Strategic Planning in ACBL: -

Hailey College of Banking & Finance, Punjab University, LHR. 4

ACBL value a work place where:

Hailey College of Banking & Finance, Punjab University, LHR. 5

employees in achieving their personnel goals, as these goals enhance the

Hailey College of Banking & Finance, Punjab University, LHR. 6

their structure in response to the need to follow their customer overseas.

Hailey College of Banking & Finance, Punjab University, LHR. 7

RECRUITMENT AND SELECTION

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ii) Four copies of recent passport size photograph.

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If accepted for the posted job, the former supervisor is allotted

Hailey College of Banking & Finance, Punjab University, LHR. 10

Askari Commercial Bank Limited also go to external sources

Hailey College of Banking & Finance, Punjab University, LHR. 11

In the hirings procedure, Askari Commercial Bank Limited are

Hailey College of Banking & Finance, Punjab University, LHR. 12

The application form is a sheet or small, booklet with blanks

Hailey College of Banking & Finance, Punjab University, LHR. 13

Bank Limited uses combination of letters and telephone calls, as a

Types Of Psychological Tests:

Hailey College of Banking & Finance, Punjab University, LHR. 14

These tests concentrate on a person's abilities with worlds

Hailey College of Banking & Finance, Punjab University, LHR. 15

interview. Askari Commercial Bank considers following things to

7) Approval by the Supervisor

Hailey College of Banking & Finance, Punjab University, LHR. 16

The physical examination step found in most business.

Hailey College of Banking & Finance, Punjab University, LHR. 17

TRAINING AND DEVELOPMENT

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hours of work overtime, call in procedures, rest and lunch periods,

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Askari Commercial Bank management as whose is initially

1) On The Job Training:

Hailey College of Banking & Finance, Punjab University, LHR. 20

Since most jobs in Askari Commercial Bank can be learned in

EVALUATING TRAINING PROGRAMS

Hailey College of Banking & Finance, Punjab University, LHR. 21

Training must be evaluated by systematically documenting the

Hailey College of Banking & Finance, Punjab University, LHR. 22

Is what extent have cost related behaviour outcomes or quality

Hailey College of Banking & Finance, Punjab University, LHR. 23

EMPLOYEES SERVICES SAFETY, HEALTH & WELFARE

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* Compensation management strives for internal and external

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* Social Security services are obtained for employees.

Hailey College of Banking & Finance, Punjab University, LHR. 26

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acquisition and divestment decisions that have an impact on Askari

Hailey College of Banking & Finance, Punjab University, LHR. 28

specializes in technical skills of managing this employment

Hailey College of Banking & Finance, Punjab University, LHR. 29

people problem relating to achieving those objectives through

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4. To develop a strategy which relates the strength of the bank