DEDICATION
We dedicate this project to our parents
And all the teachers who helped us while
Completing this project and guided us rightly.
ACKNOWLEDGEMENT
We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge.
First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the Prof. Muneeb who taught us “Human Resource Management” with heart and also gave a guideline to this report. It would be an honor for us to thank Muhammad Asad from Human Resource department of FAYSAL BANK.
Executive Summary
We were given the project related to the subject of “Human Resource Management” which included “spending some time with the HR manager”. The project has been designed basically for academic purpose. This project reveals about HR system from different aspects.
In this project, we had to visit FAYSAL BANK in order to spend some time with the HR manager. So, we visited the FAYSAL BANK and spent the some time with Muhammad Asim (HR Manager). After visiting the bank, we observed all the activities of the HR manager and the duties. With the help of this project, we come to know that how HR departments work.
Board of Directors:-
| H.R.H Prince Mohamed Al Faisal Al Saud | Chairman |
| Farook Bengali | President & CEO |
| Khalid Abdulla Janahi | Director |
| Dr. Said Sa'ad Al-Martan | Director |
| Sanaullah Qureshi | Director |
| Shahid Ahmad | Director |
| Tariq Iqbal Khan | Director |
Contact Us:-
- Registered & Head Office
Faysal House, ST-02, Shahrah-e-Faisal,
Regional Central Office
69-A,
Regional Office-North
2-G,
Capital and Ownership:-
The majority share holding of Faysal Bank Limited is owned by companies of the Dar Al Maal Al Islami Trust (DMI) including Shamil Bank of Bahrain E.C. The remaining shareholders comprise of the general public, NIT and other Pakistani institutions. The Bank’s shares are quoted on the
Faysal Bank shares its mission statement with the DMI Trust. Our mission being “The introduction of a just and equitable financial system by being a world class multi purpose financial institution, providing a range of specialized services, working on Shariah principles”.
Vision Statement:-
To be the bank of first choice with the highest ethical principles as our guiding force.
History:-
Faysal Bank started operations in
Faysal Bank Limited is a full service banking institution offering consumer, corporate and investment banking facilities to its customers. The Bank’s widespread and growing network of branches in the four provinces of the country and Azad Kashmir, together with its corporate offices in major cities, provides efficient services in an effective manner.
Main Accounts and Services:-
- Accounts
- Deposit Accounts
- The Faysal Sahulat Account
- The Faysal Savings Account
- Rozana Munafa Account
- Faysal Premium and Premium Extra Accounts
- Faysal Izafa
- Mahfooz Sarmaya
- Rozana Munafa Plus Account
- Consumer Finance Accounts
- Faysal Car Finance
- Faysal Finance
- Faysal Housing Finance
- Services
- Cash Management
- Inter-Branch Transfer of Funds
- Safe Deposit Lockers
- Travelers Cheques
- ATM and Debit Cards
- Non-Stop Banking
Different Departments of FAYSAL BANK:-
Agriculture-finance Department:-
This department provides agriculture loans to the formers at nominal rates with easy terms. It includes short term financing for fertilizers, seeds, pesticides etc and long term financing for purchase of harvesting machines and installation of tube-wells etc.
Documentary Credit and Foreign Trade Department:-
This department provides assistance to customers regarding foreign trade, such as it deals with the international companies and provides gods and services required by customers. The kind of assistance it provides includes letter of credit facility, guarantor and also helps in foreign remittances.
Marketing Department:-
It peruse the customers to make business with the bank either in the form of deposits or by applying for financing. Different toots and techniques of marketing are used such as making contact personally with the customers, advertisement through television, news papers and on the website.
Consumer and Finance Department:-
This department provides loans to the ultimate consumer in the form of car leasing, house financing and as well as personal loans. Besides this it also administers the loans already given.
Credit Administration Department:-
This department supervises the loans either given or received in the form of deposits. It administers the conditions imposed at the time of delivering of loan like security etc.
Introduction:-
There are two HR department in FAYSAL BANK. Main HR Department is located in
HR department sets the rewards (salaries, bonuses etc) according to the performance and the target achievement of the employees, if one is working satisfactorily and efficiently then he is awarded with such incentives that will motivate others to do well. If the performance shows downfall, he is warned.
The Manager of each branch is responsible for the appraisal of the employees. Then on the basis of appraisal, promotion and salary increments are awarded.
Human Resource Planning:-
Human resource planning is the process of determine and organization’s human resource needs. Its involves forecasting and planning for the acquisition, retention, improvement and the utilization of HR. in other words we can say that its is the process through which management select the right number of workforce for the right job, at the right place and at the right time. Planning is a very important part of any activity. In organization every decision needs its own set of plan. So, HR planning process is the carrying out of analysis of existing workforce and
the forecasted man power. This process also includes the development of training, skills and abilities.
Objectives of Human Resources Planning:-
- To reduce excessive labor turnover & high absenteeism.
- To forecast future requirements and availability of finance and HR labor.
- To ensure employees satisfaction and developing of their skills.
- Ensure right number of workforce for the right job, at the right place and at the right time.
- To ensure organization is responsive to changes in the environment and technology.
Process of Human Resource Planning:-
HR Planning Process of Faysal Bank:-
- To know where they are and where they want to go.
- To train their employees to meet the objectives effectively and efficiently.
- To determine the need of extra work force to do the job.
- Developed action to meet the anticipated HR needs.
HR manager of Faysal Bank also builds employment plans which are based on the basic assumptions for employment by forecasting three things.
- The supply of inside candidates
- Personnel needs
- The supply from the outside candidates according to the bank requirements.
Faysal Bank checked that either there is any job placement or any expansion in the bank; so that new jobs are open for new candidates.
Job Analysis:-
The procedure for determining the duties and skill requirements of a job and kind of person who should be hired for it.
Job analysis has two components
· Job Description
· Job specification
Job Description:-
Job description is the process through which we determine the duties, responsibilities, supervisory responsibilities and behaviors required to perform the job.
Job Specification:-
Job specification is the process of determining the job related skills, abilities required for a job.
Job Analysis of Faysal Bank:-
For every job there is different job specification which is according to the description of the job. But the method of its application is different at different organization. We have taken the task of job analysis of Faysal Bank. According to our investigation, there are three different categories of jobs in the Faysal Bank, which are handled in different ways.
Job Analysis for Lower Staff:-
For lower staff there is no prescribed on description or specification. The operational manager who is the controlling authority of the lower staff has the authority to change their job related duties with the consultation of supervisor. If there is any job vacant at low level in the Faysal Bank, the immediate supervisor of
concerned department with the assistance of Branch Manager will transfer the relevant job description and specification to the HRM Department of Faysal Bank. The head office will use this written job description and specification to select the right employee for Faysal Bank. But one thing is important that job related duties and responsibilities at low level can change with the will of immediate supervisor.
Job Analysis for Middle Staff:-
The branch manger that is the overall in charge of the bank, if there is any post vacant at middle level staff which includes operational manager and head of the entire concerned department. Then the manager will give requisition to the head office y giving job description and specification.
Job Analysis for Top Level Staff:-
At the top level, the Branch manager of the concerned branch comes. In practical side, their job analysis is done directly by the head office. And the head office uses the mostly internal source of recruitment here to fill the vacant top level job or succession planning.
Recruitment:-
Recruitment is the formal process of selection of employees. It is the systematic process of searching of candidates for employment and encourages them to apply for jobs in the organization. Effective recruitment is very important for any organization because it is the action in which management goes into labor market to find individual who is best suited to the job. The organization must provide essential and clear information about the job, so that candidates who are not eligible on the given criteria can consider themselves out of job candidacy.
Sources used by Faysal Bank:
- Internal Sources
- External Sources
Internal Source:-
Job Posting:-
Faysal Bank publicizes open job to its existing employees by listing its attributes, qualification, experience and pay rates. Bulletin Boards and Notice Boards inside the organization are used for this publication.
Contacts and References:-
Faysal Bank encourages the contacts and references of its existing employees. It means if there is any job vacant in the bank, the candidates referred by the employees are preferred.
External Source:-
Direct Approach:-
Faysal Bank approaches directly to experienced employees of other banks and offers them higher rewards to pursue them to leave their existing jobs and join Faysal bank.
Disadvantage of this method is that they have to pay higher salary for the post offered.
Advertisement:-
Advertisement is a major external source adopted by Faysal Bank. Organization extensively focuses on advertisement about vacant jobs and thus attracts the potential candidates.
The only source of advertisement adopted by Faysal Bank is news papers.
Selection Process:-
Selection process involves screening of candidates by which best suitable person in chosen for a vacant post from a pool of candidates. And rejecting the other who is found eligible as per their qualifications and suitability for job. The main objective of the selection process is to choose the right person for a right job.
Testing:-
Test is conducted by the regional offices of Faysal Bank to choose the potential candidates. Test is divided mainly into two portions.
- General IQ level test
- Job Related Test
Test Requirements:-
- Duration of test is 2-3 hours
- Minimum 50% marks are required to appear in the interview.
- There is no negative marking in the test.
Qualifies candidates are then called for an interview.
Interview:-
In an interview information is obtained from the candidates through oral responses.
- Regional office conducts the interview
- Panel Interview is conducted
- Panel consists of 3-7 members
- Expected salary and information about past job is gathered
- Nature of job and responsibilities are discussed with the candidate
- Preferences of candidate are asked in the interview.
Training:-
Training has become a pre-requisite for advancement in the profession. In FBL, employees are provided training according to the requirements of the individuals. Training programs attended by the Bank employees are mostly sponsored by Pakistan Institute of Management and
If the people are hired from outside for higher jobs and the already working employees remain working in their grades, it becomes difficult to maintain the desired levels of performance. Moreover, such a practice also results in creating unrest among the employees, and as a result they can’t wok up to their maximum capabilities.
Purpose of Training:-
The purpose of training is to increase trainer’s knowledge and skills on the active learning strategies needed to effectively communicate training sessions. The key idea of training is to change the way people behave on the job in some fashion. It’s not just learning, it’s also behavior change. After the training is done, trainees should do something differently than they did before.
Job Rotation:-
To rotate the employees from one job to another within same department as to enhance his experience for increased job duties.
In Faysal Bank there are no specific criteria for job rotation. It depends upon the will of Branch Manager whether to rotate the employee or not.
Coaching:-
Initially the employees are selected as MTO’s (Management training Officers). They are provided with necessary training relevant to their job in specific branches as directed by regional office.
On job training is also provided to the employees. Permanent employees are trained with respect to certain changes in banking system and its policies such as installation of new software, change in pattern of transaction, change in Govt. policies etc.
Internships:-
Fresh graduates and master degree holders of reputed institutes are invited to get training regarding operations of a particular organization against a little reward.
Faysal Bank also has an attractive offer for fresh graduates and master degree holders to get apprenticeship. This offer contains attraction as a reward of Rs. 750 per weak and if performance is unto the mark then an offer for permanent employee s made.
Compensation Criteria:-
Salary:-
Salary is providing according to rank but most time salary is according to performance and target achievement.
There are two way of salary setting in Faysal Bank:
· If Bank approaches to any experienced employee then pay will be set on the will of employee.
· If the candidate approaches to Bank then Branch Manager negotiate for salary.
Probation Period:-
It is specific time period for new employees do not become a permanent employee and in this period organization can fire at any time on the basis of pour performance. Faysal Bank initially selects the new employees on the probation period of six months.
Promotion Criteria:-
In Faysal Bank Branch Manager is responsible for making promotion which is made on the basis of performance.
Two promotion Criteria are used in Faysal Bank
- On performance Basis
- Without performance
Performance Basis:-
If employee perform well in every task which is given by the Faysal Bank then his performance increases. The manager of the Faysal Bank is responsible to give rewards or promotion on his performance.
Without Performance:-
If the employee does not perform well for the task of the Faysal Bank then his performance will be decreased and then it’s depend upon the Branch manager that he give promotion or not.
Allowance given by Faysal Bank:-
Medical Care:-
Faysal Bank provides medical facility to all of its employees.
- If one employee is admitted in any hospital, bank will provide 700 daily.
- All the medical bills are reimbursed by Faysal Bank if bills are proper invoices.
Vacation Criteria:-
Faysal Bank provides an annual leaves of 42 with pay from which:
- 15 recreation leaves
- 6 sick
- 15 privilege leaves
- 6 causal
Transportation Facility:-
No transportation facility is provided by Faysal Bank. Only Branch Manager is provided with the patrol facility.
House Rent or Residence Facility:-
House rent is paid to every one at a rate of 40% of basic salary. No residence facility is given to any one.
Transfer:-
If an employee is periodically employed outside the town and the branch is being opened in the home town of the employee he is transferred to the home town branch. In case of any shortage, employees are also temporary transferred.
Pension:-
No pension is given. It is a private Bank. Only gratuity fund is provided 10% of basic salary per month is contributed by employee and equal amount is contributed by employer at the time of retirement both amounts along with interest is paid to employee.
Career Management:-
The fresh employees are selected on contract basis. If one selected on permanent basis six month probation period is applied.
Performance Appraisal:-
Performance appraisal is the assessment of and individual’s performance in a systematic way, in which the performance is being measured against such factors like job knowledge, quality and quantity of output, initiative, leadership skills and loyalty. On the basis of performance appraisals of employees certain decisions are made like promotion, training, transfers, bounces and incentives.
Methods of Performance Appraisal:-
There are two types of performance appraisal which are given below:-
- Traditional Methods
- Modern Methods
Traditional Method:-
This is the older methods of performance appraisals which are based on personal qualities, knowledge, loyalty and leadership. Following are some traditional methods:-
Ranking Method:-
In this method superior is asked to rate all the employees from higher to lowest. It is easy for superior to rate the best and worst one among all.
Unstructured Method:-
In this method performance appraisal process doesn’t follow any specific structure. It is only based on the description of the employee by the superior judgment of leadership qualities.
Man to man comparison:-
In this method performance of employees is determined on certain factors like initiative, leadership and other personal qualities which are compared with another employee.
Forced Choice Method:-
In these method two options is given to the rater and the rater must chose on of them about employee’s behavior. Like (is he loyal? (Yes or No))
Paired Comparison:-
In this method each member performance is compares with every other member in the group. Thus a ranking system is formed and best one is chosen.
Modern Method:-
Modern methods were formulated to improve upon traditional methods remove the shortcoming of old methods such as biased and prejudiced. Some of the modern methods are:-
Behavioral Anchored rating Scale:-
A performance appraisal technique that appraises an employee on actual job behavior rather then traits. Advantages of this method are the focus on specific and measurable job behavioral and the disadvantages in time consuming.
Management by Objectives:-
This method is not done by single person, but it is done through mutual communication between boss and employees. It is the process of goal settings and feedback.
360 degree Feedback:-
A performance appraisal method is that utilize feedback form supervisors, employees and workers. This is though process but time consuming.
Performance Appraisal Process of Faysal Bank:-
To compare the employees current/past performance with their standards such process is called performance appraisal. Faysal Bank adopts the traditional appraisal method which is done on yearly basis. Branch Manager of Faysal Bank apprises from sweeper to operational manager and appraises of Branch Manager is done by area manager of Faysal Bank. Branch manager appraises all the employees by taking direct instructions from respective heads.
Conclusion
The project has helped us in understanding how a Human Resource Department works. With the help of this project, we are now able to explain the Human Resource Department in a better way. The project has given us all the concepts which we studied in the course and now we have understood these practically.
