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Spring Fall( 2013)


I dedicate my project efforts to our respectable teachers who taught and hold our hands
on several occasions to complete such complicated and lengthy project.

All praises and thanks to Almighty Allah. The Lord and Creator of this universe by whose
power and glory all good things are accomplished. He is also the most merciful, who
best owed on me the potential, ability and an opportunity to work on this project.
I am grateful to my respected teacher Sir Goolfam who has guided me in each and every
step of this project. Indeed, without his kind guidance I may not be able to even start this
project. May ALLAH give him the reward, which he deserves. I am also grateful to all
those members who are related to ACBL.

The internship report of Askari bank based on to practically experience the Human
Resource Practices studied in our course of MBA, on HRD of Askari Commercial Bank
Ltd., especially to thrash out the training and development practices followed at ACBL.
As, now days, there is a tough competition in the banking sector of Pakistan, so this
forced us to do competitive analysis of the main topic (training & development) to gain a
complete understanding of the concerned HR Practice, and also to give valuable
recommendations to the ACBL, for this I have selected the main competitor of ACBL, i.e.
Bank Alfalah. To proceed with the project we have visited Head Office of ACBL and
Saddar Branch (Rwp) of Bank Alfalah. We have tried to note down all the practices
followed in these banks at best according to our knowledge but as the Head Office and
Training Center of Bank Alfalah is situated in Karachi, so the information gained from the
competitors of ACBL is very brief and concise.

This project is sequenced as firstly with the Introduction Of The organization and telling
the purpose and scope of the study. Including the Hierarchy of the Bank and the HRDepartment. This proceeds with the Findings of the Project, which summarizes the HRM
practices followed in ACBL and a detailed elaboration of Training and Development
practices in ACBL. Next chapter covers the Competitors Analysis followed by some
Recommendations based on the analysis of the project.



1.1 Brief History
Askari Commercial Bank Ltd. (ACBL) was Incorporated in Pakistan on October 09,1991,
ACBL commenced its operations in April 1992, as a public limited company, and has
since expanded into a nation-wide presence of more than 50 branches, handled by the
human capital of more than 1600 employees and has lowest turnover in Pakistani
Banking Sector.
The Bank is listed on the Karachi, Lahore & Islamabad stock exchanges and the initial
public offering was over subscribed by 16 times.
ACBL is principally engaged in the business of banking as defined in the Banking
Companies Ordinance, 1962.As at December 31, 2002, the Bank had total assets of
PKR 70.313 billion, with over 250,000 banking customers.
ACBL has a Correspondent Bank Network in more than 95 countries with about 167
banks. ACBL is the only bank with its operational Head Office in the twin cities of
Rawalpindi-Islamabad, which have relatively limited opportunities as compared to
Karachi and Lahore; this created its own challenges and opportunities, and forced us to
evolve and outward-looking strategy in terms of our market emphasis. As a result, ACBL
developed a geographically diversified assets base instead of a concentration and heavy
reliance on business in the major commercial centers of Karachi and Lahore, where
most other banks have their operational Head offices.


To be the leading private sector bank in Pakistan with an international presence,

delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stakeholders, and contributing to society.

1.3 Services Provided By ACBL

Askari Mortgage Finance.
Askari Business Finance.
Askari Personal Finance.
Askari Travelers Cheques.
Askari Master Card.
Askari Bank's Cash Management Service.
Askari Car Leasing.
Touch n Pay (Utility Bills Payment).

1.4 Awards and Achievements

ACBL has recognition of achieving the following firsts in Pakistani banking;
First Pakistani Bank to offer on-line real-time banking on a countrywide


First Bank with a nation-wide ATM network.

First Bank to offer Internet Banking services.
First Bank to offer e-Commerce solutions.
Different institutions and magazines have also awarded them at different occasions,
some are;
The Best Bank in Pakistan by the Global Finance magazine for the years 2001 & 2002.
Best Consumer Internet Bank award for Pakistan by Global Finance for the year 2000.

Best Presented Annual Accounts awards for 2000 and 2001 from the Institute of
Chartered Accountants of Pakistan and the Institute of Cost and Management Accounts
of Pakistan,
Prizes from the South Asian Federation of Accountants for The best Presented Annual
Accounts for the financial sector, in the SAARC region.
1.5 Branch Network
The system of Regional and Area offices has been introduced since 1999 for effective
supervision and control of branches. The Bank's branch network has been divided into 4
North Region

Central Region.

South Region

West Region.

Under this system the Regional heads have the primary responsibility for
business development, profitability, productivity, operational efficiency and credit quality.
Words of President and Chief Executive - Kalim-ur-Rehman;
Assets make things possible,



Commercial &
Retail Banking



Regional Marketing

Branch Managers

Banking Group

Operations Chief

Operations Group


Department of
the Region


Corporate Head
Corporate Head

Special Assets

Regional Risk

Risk Management
Group Chief

Group Chief
Credit Department
of Region

Branch Credit

Regional GM
Audit Inspection Group

Area Audit


Currently there are 17 employees working in HR-Department of ACBL. These
are positioned on the basis of following hierarchy.

Divisional Officer

HR Head

President - HR1

Junior Officer


This section includes a summary of the HRM practices followed in ACBL and a detailed
study of Training and Development.

The most important
Division at the Head
Office is responsibleOperating
for human resource
Grade 1

Grade 2

3 & development,
management, including planning, recruitment, staffing, training

compensation, performance management, employee relation and evaluation. The

Division also handles matters relating to administration that proves an integrative

Junior Officers
linkage (34) between HRD and Administration.
Different practices are briefly summarized as follows;

3.1 Planning: HR Department is responsible for an effective HR planning (16) regarding demand and
supply of employees and forecasting for these practices.
Forecasting Employee Demand: Employee demand at ACBL is derived from following factors;

Internal Growth:i.

Opening a New Branch.


Setting up New Technology.


Changes in Customer Demand.


New Services.

Forecasting Employee Supply: HRD at ACBL ensures the employee supply on following basis;

ACBL transfers its employees from one branch to other branch with in the
same region, especially whenever a new branch is opened.

Internal Movements.
Internal movements, which include promotions and rightsizing, are a part
of supply.
Job rotations are also done with in the departments from time to time to
decrease the monotony and to make up interest in the job. It is most
common for On Job Training (33) of MTOs.
To compensate the workload, most of the employees voluntarily work
over-time at their jobs. As the employees are not forced to work over-time
so they are not paid for this overtime. Sometime the supervisors also ask
their subordinates to work over-time.
Apart from this, there are night shifts working in Electronic Technology
Department (ETD) at ACBL. It is done whenever there is a workload
regarding the making of ATM and Credit cards etc.
Temporary / Contractual.
Temporary and Contractual employees also work in ACBL normally in
ETD who work as Hardware Technicians and Software Engineers etc.
The same are some times contracted from different Software Houses.
Other than this all the employee at ACBL is not permanent, most of them
are at contract (employment at will).

Employee Shortage: As ACBL has currently a growth strategy and for that ACBL is opening five to
six branches every year at national level. This makes an employee shortage for
ACBL, but ACBL covers it by hiring in following two categories.

Management Trainee Officers. (Recruited once in a year)

Junior Officers. (Recruited according to the need)

3.2 Recruitment: ACBL recruits both fresh and experienced persons on regular basis to support its growth
strategy. A part from this, ACBL recruits in both categories (MTOs & JO) as discussed
above. For this ACBL uses following internal and external recruitment sources;

ACBL advertises the vacancies in popular newspapers, which can either
be in English or Urdu papers according the job and situation.
ACBL has its own website, where it advertises the vacancies. It also has
electronic data bank where the interested persons apply for the jobs.
Direct Applicants.
Fresh graduates keep on submitting their CVs to the HR Department from
time to time. HRD selects the effective persons for interview and tests
whenever a job is vacant.

3.3 Selection:
After the recruitment the selection of most reliable and efficient persons is done
at ACBL under the supervision of HR personals. The selection process at ACBL
is sequenced as follows;

I. Entry Level Test:

After recruitment all the candidates have to give an entry-level test. Test is
comprised of, General Knowledge, English, Math, Accounting and other subjects
which might vary according to the caliber of the job. Those
who clear the test are proposed to proceed further for the selection process and
the remaining are short-listed.

II. First Interview:

The selected candidates have to take the 1st interview, which is conducted by
a team of Subject Matter Experts (37) including HR officials. The candidates
are again short listed by the interviewers.

III. Second Interview:

Now the Vice President - Human Resource, again interviews the next
selected lot.

IV. Third Interview:

Finally, Senior Vice President of HR interviews the successful candidates.
V. Medical Test:
The selected candidates submit their medical reports of the required medical
tests. If a candidate is medically unfit, he or she is given a recovery period of
3 4 months.

3.4 Training and Development: -

ACBL also conducts the training of the selected candidates, which is

conducted by the Training Wing in alliance with HR and other related departments.
The high leverage training (9) is done in two main areas;

Banking (General Banking, Credit Division, Foreign Trade):

Personality Development:

As hiring is done in two categories (MTO and JO), so because of the

difference in ranking and working methodology, the training needs for both are
varied. Among various training methods, classroom and OJT are most commonly
in practice in ACBL.Other than the training of new hires, there are more than 50
Refresher Courses for the improvement and development of current employees.

Employee Development: (27)

Regarding employee development, following approaches are followed by ACBL;

On Job Degrees and Certifications.

Sabbaticals for Training.

Assessment Centers.

Performance Appraisals.

Employee Assistance Program.

Interpersonal Relationship Development.

* Training and Development is discussed in detail in the next chapter.

3.5 compensation: HRD of ACBL has kept its compensation and equity practice confidential.
3.6 Performance Management: ACBL has an effective performance management system. HRD in alliance with the
different departments evaluates the performance of employees at annual basis. For

this, Annual Performance Report (APR) of each employee is made and 3600
feedback (36) is used as a tool for completion of APR..In APR employees are
evaluated on basis of following skills and are graded on scale of grades starting from
A to E, which have different percentages.
Leadership Qualities.
Marketing Skills.
Job Knowledge.
Technical Knowledge. Etc.
* This is the most important practice of HRD as, the promotions, increase in salary;
training needs of an employee etc. all are dependent on it.


During my internship I studied the training and development process of ACBL
4.1 Training At ACBL: As priory written in the scope of study that ACBL is managing its training needs
from a single Training Center, so it is feasible to elaborate some facts about the Training
Center before breaking the training methodology.
The training center was established in 1999, since then it is managing the training needs
of Punjab, NWFP and AJK region. It also handles the Sindh and Baluchistan Region in
alliance with main branch of Karachi. For Sindh and Baluchistan, Training camps work to
fulfill the needs of the region, this is done 3 4 times in a year.

4.1.(a) Hierarchy Of Training Center:

Training Wing is managing the whole process under following hierarchy:


HR Division
Training Wing
Mr. Riaz Bungush
(V. P Training)

Mr. Shahid Iqbal

(Grade 1 Officer)

Mr. Irfan
(Grade 3 Officers)

HR and Training Wing make all strategies side by side. The Training Wing implements
these strategies and the result of implementation is reported to HRD, which is further
reported to the President. In the training wing, currently Mr. Riaz Bungush (VP Training)
and Mir Shahid Iqbal (OG-1 Officer) are authorized trainers / instructors.

4.1(b)Areas Of Training
The training at ACBL is done at two broad areas, which are further categorized, these
I. Banking:
II. General Banking.

Credit Division.

Foreign Trade.

III. Personality Development:

Management. (Leadership & Controlling etc)

Marketing and Selling.

Behavior Modeling. (Personality development)

Communication Skills. Etc.

Information Technology training is also given to the related employees in

collaboration with the Electronic Technology Department (ETD).

4.1(c) Who Need Training

The new hires always need training. There are two types of new hires;
I. Fresh Hires: Fresh employees are those who have recently completed their studies and have
no or little experience of banking. Such employees need to attend a formal
training session to get aware of banking technicalities. These fresh selected
employees are categorized in two separate parts according to their posts; hence
the training methodology of both differs with each other.


Management Trainee Officers (MTO)

MTOs are hired only once in a year, and they are selected for middle level

executive posts, so their training is quite complex as compared to JOs. After the
selection, they have a Theoretical Training Session of 2 3 months followed
by On Job Training (OJT) (33) for further 3 years. The theoretical training

session is conducted by the Training Center, where formal lectures and

presentation techniques are adopted. Whereas, the OJT is conducted at the
relevant branch and department. MTOs get training in all the areas of banking,
i.e. General Banking, Credit, Foreign Trade and Personality Development.

1-b Junior Officers (JO)

Junior Officers are hired according to the needs of different branches and
departments. There work is non-managerial and clerical in nature, so their
training needs are not as complex as of MTOs. After the selection, JOs
have to attend only a 2 weeks Theoretical Training Session. They get
training only in the General Banking and Personality Development and
not in Credit and Foreign Trade. No OJT is conducted for JOs.

II. Experienced Hires: Experienced employees are those who have already worked in other banks at executive
posts. Such employees do not need any formal training session; they are informally
trained in their specific area.

III. Current Employees: ACBL offers more than 50 Refresher Courses in different aspects of banking, so
that the training needs of current employees are fulfilled.

4.1(d) Training Need Assessment Process

The identification that either the training of current employees is necessary or not
depends on the results of Annual Performance Report (attached in annexure).
In APR the Training Pressure Points might be the following one;

Poor Performance of Employees.

Lack of Skills in Employees.

Employee Himself Asks For Training.

His Boss Identifies Him For Training.

Other than APR, following are also some of the valid reasons for conducting the
training program.

New Hires.

New Technology.

Internal Growth. (New Branch)

New Services.

Organizational Analysis: (15)

The Head Office supports the training program by providing finance and peer
appreciation. An Annual Budget is allotted to the Training Wing for conducting the
training program.

Person Analysis:
The APR exactly identifies that who needs training, and is it really a training problem.
APR is evaluated by using the most effective tool, 3600

Feedback (36) and APR is checked by the reporting officer and rechecked by senior
reporting officer, so there is no doubt about the identification of the training need of an

Task Analysis:
The task and duties that require training are also specified in the APR. In the APR the
Boss might recommend the areas of training, or the employee himself may identify the
tasks and duties for which he need training.

Ensuring Employee Readiness

The relevant department of whose employee is requiring a training session ensures the
particular employee that he can learn the task or duty. Further they also ensure the
employee / trainee that it will be beneficial for him and for the organization both.
Creating a Learning Environment
In OJT, all the branches and departments of ACBL maintain a learning environment to
enhance the training by;

Job Rotation.

Valuing of Employees.

Appreciation Certificates. Etc.

Sharing / Transfer of Training

Informally in all jobs the trained and experienced employees share their knowledge with
the new hires and those employees who are suffering with their tasks. But in Elec. Tech.
Deptt. (ETD) it is done formally by the technicians.

4.1(e) Training Methods

Among the various training methods, ACBL is using the following methods to trains its
Class Room Instructions.
The Training Wing of ACBL commonly uses it. JOs have 2 weeks session of
classroom training. MTOs have 3 months session of classroom training, which
covers all the three areas of banking.
Followings are the parts of classroom training session.

Business Games.

Case Studies.

Research Topics.

Written and Oral Assignments.

Role Plays.

On Job Training (OJT).

It is the second most commonly used method of training in ACBL. Only MTOs
have an OJT session. Job Rotation is the main ingredient of OJT.

Degrees & Certifications.

Other than full time degrees and certificates, ACBL has more than 50 Refresher
Courses for current employees to enhance their skills.

Team Learning.
Behavior Modeling.

* Audio Visual Aids and Multimedia are used in the training sessions. Further,
most of the training sessions are conducted in 5 Star hotels.
4.1(f) Evaluation Of Training Program
The Training Wing in alliance with HR evaluates its training program as follows;

The most important way to evaluate the training program is by checking the
linkage with the objective and goals of the bank / high leverage training.

By measuring the affects on organization.

By Cost Benefit Analysis / Budgeting.

By checking the employee reaction.

Evaluation Of Trainees
At the completion of training session, the Training Wing evaluates each trainee in
following ways;

By Pre-test Post-test.

By testing the employees during the session.

ACBL conducts quizzes and evaluates the written & oral assignments.
Cross Cultural Training
There is an informal cross-cultural training of employees in ACBL for its branch in Bahrin.

Reward System
ACBL has a reward system for the trainees who perform better during the training
session, which are in shape of;

Appreciation Letters.

Shields. Etc.

* Courses are normally conducted at Five Star Hotels, which are a motivating factor for

4.2 Employee Development At ACBL: Development of employees inn ACBL is done under following approaches;

A.On Job Degrees and Certifications:

At ACBL every employee is given an opportunity to do extra degrees and certifications in
his field or where he / she is lacking skills.
E.g. MBA- Executive and others.
ACBL has also more than 50 refresher courses in different area of banking and
management. Employees are fully supported at ACBL to take these courses and
Sabbaticals For Training:
For refresher courses, which are usually not longer than 7 to 10 days, sabbaticals are
given to the employees. This motivates the employees to take these courses whenever
an opportunity is there.

Assessment Centers:
Leaderless group discussions are occasionally held at all branches and
departments followed by conferences at meetings between employees
and among executives and board on directors on regular basis, for the
whole day, normally after the banking hours.
During training sessions Role Plays are also given to employees, which
help them to develop themselves.

Performance Appraisals:
The most important source of employee development which results in the
promotions, rightsizing, increase in salary, perks and benefits is done in
ACBL with the help of 3600feedback (36).
Employee Assistance Program:
All employees at ACBL are given the opportunity to get themselves proper
training in their desired areas, Employees do an informal counseling with
their supervisors for improvement in their work and also in career

Before conducting an analysis of the project, it is feasible to briefly overview the
competitors findings.

Bank Al-Falah was established in July 1997. Its head office is in Karachi and bank has
49 branches all over the Pakistan. Bank has one branch in UAE.
Bank is offering different types of services for its valued customers. These services are
ATM, Online Banking, Home Loan and Car Financing.

Human Resource Department:

Bank has a HR Department who perform different sort of functions. The
department advertises in newspaper for the jobs then recruitment and selection process
occurs. Training and development is major task of HR department.
In HR department there is one Executive Incharge, One Assistant Executive In
charge and personnel managers.

Selection And Recruitment:

Bank advertises in newspaper and candidates apply for the jobs. After test, interview and
other formalities the selected candidates are given six months training. Every year the
bank offers 30 vacancies for the post of MTOs.
The MTO program is a highly competitive and sought after induction scheme, in which
short-listed applicants appear in a written test followed by a panel interview. Successful

candidates then receive comprehensive training in essential areas of branch banking at

the Banks state-of-the-art training facility at Karachi They are subsequently posted at
the Bank's prior to their posting at various branch locations in Pakistan. Preferred
educational background for entry into the MTO scheme includes an MBA degree, MA
Economics or M.Com from reputable Pakistani or foreign institutions with GPA of 3 plus,
or equivalent. Strong personal character, as well as communication and interpersonal
skills are essential pre-requisites to succeed as an MTO

Training And Development:

Bank Alfalahs management believes in developing the potential of the Banks
employees to the fullest extent. Training & Development Center of the Bank is housed in
custom-built, state of the art facility on the 4th floor of the Head Office building at
Karachi. The center is responsible for providing multi-level high quality training
programmes to all staff members in the following areas:

Consumer Banking Operations

Credit Marketing & Credit Proposals

Credit Administration/Documentation

Trade Finance Operations

Marketing & Selling Skills

Customer Service Skills

Performance Appraisal Skills

Time Management

Personal Effectiveness

It is obligatory for each staff member of the bank to attend at least one training
programme. Wherever the Training Department is unable to provide focused training for
certain groups of staff, reputable external training providers are invited to fill the gap.
The candidates are given six month training in which theoretical lectures are given along
with different case studies, situations and presentation techniques. Groups are made to
enhance the coordination and team building. Candidates with different skills and abilities
are appreciated for their creativity. During the job formal and informal meetings are
conducted where all employees are free to speak and they can give different ideas and
plans. Employees are encouraged for continuous learning and bank even send its
employees for special training courses to abroad.
Main Training Pressure Point of Bank Alfalah is also same to that of ACBL, i.e.:

The identification that either the training of current employees is necessary or not
depends on the results of Annual Performance Report (attached in
Rewards System:

Employees are given salary of 10000-12000 per month in training session, after
training bank increase their pay and also give them other benefits.

Performance Appraisal:

Each manager submit the report of his subordinates to his boss in which they evaluate
his employees from different dimensions and if audit report of any branch show negative
impact than all types of increments are stopped of all employees of than branch.


Analyzing the Training and Development practice of ACBL and comparing it with Training
& Development of Bank Alfalah, it is concluded that currently ACBL is effectively meeting
its targets, but to encounter with future demands, ACBL needs to overcome some shortcomings in order to maintain and gain competitive edge, for this we have concluded
some recommendations stated in next chapter.


6.1 Recruitment
Recruitment is the first part of the process of filling a vacancy; it includes the
examination of the vacancy, the consideration of the sources of suitable candidates,
making contact with those candidates and attracting, applications from them. An
organization can never be better than the people it hires and this is a concept that askari
bank firmly believes in. They boast about never compromising on the quality of its
Askari bank is well known of being conservative and this can be justified by the fact that
they try their best to fill in any vacancies that crop up by first scanning their current
employees for the required qualifications and experience. According to the Human
Resources Manager they prefer to go internally because
It is considerably less costly than external recruiting.
A present employee is more likely to stay at askari bank than an external candidate.
The people already working for askari bank are well aware of its culture and employee
demands and thus provides a better understanding for their work.

The organizational policy of promoting from within enhances the employees morale,
organizational commitment and job satisfaction.
At askari bank external recruiting is the last option. In case a need arises for external
recruitment they meet it discreetly. When enquired on this issue the HR Manager said
that they do not prefer external recruitment because it may have a negative impact on
the work group, cohesion and morale.
Askari bank uses the following channels for external recruitment;
At askari bank referrals act as an effective recruitment tool. Referrals are most helpful in
the cases of highly specialized jobs. Employees while recommending applicants place
their own reputation at stake; therefore, they are usually careful to recommend only
qualified applicants. Referrals result in maintaining consistency in the work force as the
people referring their friends would be well aware of the company culture and
environment and would never suggest a person they know isnt capable.
Another common and effective methods of external recruitment are walk-ins and writeins. These methods are quite informal and provide the applicant an opportunity to sell
himself/herself to the organization. This method is very appreciated at askari bank
because it too gives them the chance to hire fresh, vigilant, determined and confident
work force for entry-level jobs.
Management Trainees
Another channel of external recruitment is a management trainee. These training
facilitate market exposure for fresh graduates. Askari bank provides these recruits with
an extensive learning program where they are taught how to handle dealings in the
corporate world and hence mould them into their culture. These recruits are evaluated

after their internship period is over and these appraisals are filed. Whenever external
filling is required these trainees are their first option to the bank.













Selection is the process of assessing the candidates by various means and making a
choice followed by an offer of employment. This process consists of the following steps.
An interview with the HR Manager, the department head and finally by a panel of
The candidates have to appear for an interview first with the HR Manager then with the
department head and finally before a panel. The panel will always include the head of
the department where the candidate is to be assigned if selected. The presence of at
least three officers will constitute a quorum. The attached quick interview worksheet will

be utilized for guiding the interview. Rejection by more than one panel member will
disqualify the candidate from the employment of the company.
During the interview, it is natural that the interviewers will tell the candidate about the job.
They are however, advised to confine themselves to the realities of the situation and
must not promise more than what the job probably offers, otherwise in likelihood the
company will end up with a frustrated worker who was painted a more attractive than the
actual picture of the job.
The selection interview at askari bank is a formal in-depth conversation conducted to
evaluate the applicants acceptability. They are highly popular because of their flexibility,
as they can be adapted to skilled, unskilled, managerial and professional employees.
Interviewers at askari bank allow a two-way exchange of information: they learn about
the applicant and the applicant learns about them

Following are some of the general questions interviewers at askari bank ask their
Why do you want to change jobs?
Why did you leave your last job?
What are your career goals?
How do you consider yourself to be the best person for this job?
Sell yourself in five words.
What are your greatest strengths and weaknesses?
Describe your ideal job.
If given a choice what kind of work you would prefer?
Why did you select your college major?
How would you handle a task under stress?
At askari bank the orientation period is two weeks. During this time the employees are










accomplishments and the future prospects of the company.

All new hiring will remain on probation for six months. Confirmation as a permanent
employee will be based on the satisfactory replies from at least three personal
references including former employers as shown on the application form. Usually the
most valuable references are from previous employers. Where necessary personal
contact with previous employers should be established.



Network is a major strength ACBL has. ACBL is a Pakistani Bank with the most
extensive and comprehensive global network that open up new opportunities in near
future. Their up graded technological infrastructure is also important which provides
uniform service system across the Banks network that will allow much higher levels
of efficiency and customer service

Customer Relationship

The Bank has a distinctive client focus with a view of attaining greater customer
satisfaction. Continual efforts are made by the Bank to revisit customer needs and
for improving customer services. Management continues to further rationalize Banks
network with a view of improving efficiency28. The trust associated with ACBL is also
its strength to stand out. The bank continues to re-engineer processes and centralize
functions to make ACBL services more cost efficient to improve customer response.
ACBL commitment to provide customers with banking facilities of an international
standard and its policies towards modernization helps them gain more strength.
The survival of a service organization like ACBL is dependent on superior customer
service and relevant products. ACBL strong culture of customer service and
satisfaction reflects ACBL distinctive competence. They value their customers
business and want to seek satisfaction. Thats why a very strong population of 1.5
million users supports them

International Operations

The international operations of ACBL allow it to get benefit from synergies of

countries within specific geographical areas. International operations are segmented
into regional businesses by formation of six major regional centers viz UK,
continental Europe, Africa, Middle East, Asia Pacific and USA.31



ACBL is not promoting its ATM services which are a major weakness. They can
change their target market or at new target markets through promotion for example
they can promote the uses of ATM such as its use at vacations.

Cash Withdrawal Limit

One of the weaknesses of ACBL ATM is that they have prescribed cash withdrawal
limit for all kinds of customers where as ACBL ATM offers no cash withdrawal limit.
They have cyclic withdrawal limit which allows each customer to have his own cash
withdrawal limit32

Payment Of Utility Bills

There is no facility offered by ACBL for payment of utility bills but it is possible on

Transfer Of Funds

No facility on behalf of ACBL ATM is offered regarding transfer of funds between PLS
savings account and current account of same customer through same ATM card.

Shortage Of ATMs

ATMs, despite of ACBLs extensive and comprehensive network is still unavailable in

many of its branches. Similarly there are some profitable geographical locations

where there are prospects of increased profitability for example an ATM at Murree
means new segment for ACBL.

ATMs Working

ACBL ATMs are usually out of work without any notification to customers as
compared to MCB, which advertises in newspapers that a certain machine is out of
order34. Moreover one of their customers also mentioned in a survey that the
machine is out of order mostly at weekends.


Use Of ATM as a Credit Card

It can be an opportunity for ACBL to introduce ATM also as a credit card which will
invite a different segment and which will improve profitability. They can also cut costs
in this way.

Technological Improvements

Various technological improvements may lead to success for ACBL

If ACBL opens up its deposit box facility for customers it can heavily increase its
profitability. If implemented this opportunity can be a competitive advantage as well.
ACBL can also implement the conversion facility for example if the ATM receives the
request for payment of amount in dollars then it should pay the customer in Dollars.
They can make ATM more attractive and enjoyable place to come rather then a bossy,
bore environment. To provide customers with an enjoyable event whenever they visit the
ATM they can change their machine styles, have variations in colors and add audio
instructions following the transactions.

As Internet and World Wide Web usage continues to increase ACBL should extend its
exploitation of this market by acquiring and merging with companies with specialized
technological expertise. Although this expansion is costly they should exploit this
strategic niche and take advantage of this opportunity in external environment.
In order to increase their market share ACBL should expand its ATM network. By
opening ATM sites where it can target new market sis essentially good for competition as
well it is profitable. They can look out for any sick units that are not as profitable as the
ones intended to be opened.

Improving customer focus

ACBLs commitment to making substantial investment in technology (planned

expenditure of USD 20-25 million over next three years) to provide customers with
banking facilities of an international standard is an opportunity for making technological
improvements in this business.

Illiterate People

Illiterate people are also an opportunity for ACBL in regarding this service . ACBL can
serve these people by giving instructions in Audio and in Urdu. They can also have
instructions written in Urdu on card or even they can have a display in Urdu. They can
increase their target market, market share and profitability.


Economic Environment

Economic environment is a major threat to ATMs success .For example in 2000

when the government embarked on an economic revival plan with a complete task of
resource mobilization, GDP growth and poverty alleviation in a different economic
environment with continued international sanctions. During the year domestic

demand though improving still remained weak and fiscal constraints did not allow the
government to increase development expenditure and boost demand.37

Political/Legal environment

Law and order situation has a direct impact on how frequently or how many people
use ATM. Also legal obligations also hinder/pose threat to ATM availability. For
example there is a rule that he two ATMs should be at least 3 kms away from each
other. If there are strict regulations on this policy then it is a threat to ATM availability
for example there is an ATM in Melody and also at Aabpara so it is important that
legal environment is positive and firm enough to pose threat to Banks activities.

Expense Base

The expense base will be a major threat to the ATM because it will impact the need to
spend in order to modernize ACBLs customer interface. Expenditure has to be incurred
on Branch rationalization and computerization. This expenditure is essential, given poor
infra structure at Branch level resulting from years of underinvestment. Because 90
million is sufficient money to invest to open an ATM there should be a strong expense
base to support the expansion of ATM


Organizations exist when two or more people work towards achieving common goals. An
organization can never be better than the people it hires. Hence we have to get the best
to be the best because the performance of the employees reflects the companys image
and standing in the market.
Out of the three Ms i.e. Man, Money & Machine, probably the human dimension is of the
utmost importance. Hiring employees is not the sole objective rather the primary goal is
to devise a tool that can help the organization attract, maintain, retain and motivate them
enough to give their best to the organization. Training and development is therefore the
first step towards success. Better the quality of the employees better the performance of
the company.
An organizations ability to meet the training and development challenges provides an
opportunity to make significant contribution to the company. With better quality people
executing the companys operations the HR department can create a competitive
advantage for the company.

9. Recommendations
After analyzing the Training and Development practice following recommendations are

To fulfill the Training Needs of the more than 50 branches of ACBL, it needs to
decentralize its Training Centers and should open a new Training Center for
Karachi Region.

For time being to share the burden of Training, more instructors should be hired
for the Training Wing.

Like Bank Alfalah, wherever the Training Department is unable to provide

focused training for certain groups of staff, reputable external trainers are invited
to fill the gap, ACBL should also outsource trainers in such cases.

New performance measurement approaches like, Management by Objectives

(MBO) and Productivity Measurement & Evaluation System (ProMES) should be
adopted to make the results more accurate as the bank is in growth stage.

In 3600Feedback method, there are chances of errors due biasness and halofactor. To avoid this error, Rater Error Training and Rater Accuracy Training
should be given to the employees.

Regarding Development, MyersBriggs Types should be applied to enhance the

employee development process.

If possible, bank should arrange externships for some employees in other

reputable banks, to bring up new ideas and more accuracy in ACBL.

Mentoring program should be started to excel in the training of employees.

Distance Learning is also required to adopt, untill a new training center is

opened, especially for the branch in Bahrin.

HRM Information System (HRIS) should be implemented in the Head Office,

which should be further connected with all branches for more efficient working of
HRD, especially with the Bahrin Branch of ACBL.

1. Books:
a. Author:

Noe Hollenbeck Gerhart Wright

Book Name:

Human Resource Management.



Date of Publication:

Year 2002.


Mc. Graw Hill

b. Author:

Kathryn M. Bartol and Martin.

Book Name:




Date of Publication:

Year 2002.


Mc. Graw Hill

c. Author:

Saeed Nasir.

Book Name:

Banking, Currency and Finance.



Date of Publication:

Year 2000.

Place of Publication:


2. Websites