allied bank term report on management functions

1. Organizational Behavior
“Term Report on managementfunctionsof Alliedbank”
1
“Term Report on management functions of
Allied bank”
An Interview of MR IrfanAbbasi(operationalmanageratAllied
bank)
1/31/2015
Organizational Behavior
Ambreen Zulfiqar
BBA IV (B)
SubmittedTo: SaeedAhmedSheikh

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Company profile
Allied Bank is a commercial bank in Pakistan. Allied Bank, with its registered Offices in
Karachi and Lahore, is one of the largest banks within the country with over 900 branches,
connected to an online network. It was the first Muslim bank established in Pakistan before
independence (1942) with the name of Australasia Bank. It was named as Allied Bank of
Pakistan from Australasia Bank Limited in 1974, and Sarhad Bank Ltd, Lahore Commercial
Bank Ltd and Pak Bank Ltd were also merged in it.
It was established on December 3, 1942 as Australasia Bank at Lahore. At that time the chairman
was Kh. Bashir Baksh. The bank's history is divided into many phases. During 25 years of united
Pakistan the bank advanced forward in all areas of its activities. In 1971 East Pakistan was
separated and Australasia Bank lost its 50 branches and a lot of capital as well. In 1974 all the
Banks were nationalized including Australasia Bank. The small provincial Banks were merged
into Australasia Bank. On 1 July 1974 the new entity was renamed as ABL of Pakistan Limited.
Then it started its operations as Public sector financial institution.
Different Phases of the Bank Are as Follows:
 The Pre-Independence period (1942-47)
 Australasia bank in private sector (1947-74)
 Allied bank: Public sector years (1974-91)
 Privatization (1991-2004)
 A new beginning (2005 to up to date)
Company Overall Mission and Vision
Vision
 To become a dynamic and efficient bank providing integrated solutions in order to be the
first choice bank for the customers.
Mission
 To provide value added services to our customers
 To provide high tech innovative solutions to meet customers’ requirements
 To create sustainable value through growth, efficiency and diversity for all stakeholders

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 To provide a challenging work environment and reward dedicated team members
according to their abilities and performance
 To play a proactive role in contributing towards the society
CORE VALUES
• Integrity
• Excellence in Service
• High Performance
• Innovation and Growth
Organizational structure of company
Board of directors:
Mohammad
Naeem Mukhtar
Sheikh
Mukhtar
Ahmad
Muhammad
Waseem Mukhtar
Abdul
Aziz Khan
Mubashir
A. Akhtar
Pervaiz
Iqbal Butt
A.Akbar
Sharifzada
Tariq
Mahmood
Audit committee of board:
Mubashir A.
Akhtar (Chairman)
Pervaiz Iqbal Butt A. Akbar Sharifzada
Human resource and remuneration committee
Mubashir
A. Akhtar (Chairman)
Pervaiz Iqbal Butt A. Akbar Sharifzada
 Company secretary
M. Raffat
 Auditors

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Ernst & Young Ford Rhodes Sidat Hyder (Chartered Accountants)
Chief Executive Officer
 Mohammad Naeem Mukhtar
Chairman / Non Executive Sponsor Director
 Sheikh Mukhtar Ahmad
Non Executive Sponsor Director
 Muhammad Waseem Mukhtar
Non Executive Sponsor Director
 Abdul Aziz Khan
Independent Director
 Mubashir A. Akhtar
Independent Director
 Pervaiz Iqbal Butt
Independent Director
 A. Akbar Sharifzada
Government Nominee Director
Specifically in Allied bank in Sukkur district Operational manager is Mr. Azizulah.
 Abdul malik
Regional manager
 Head office of Allied bank is in Lahore . Allied bank Sukkur has to report Allied bank
Karachi and then Allied bank Karachi will report to Lahore. There is a kind of hierarchy
system Sukkur Branch of Allied can’t report directly to the Lahore Head office of Allied
Bank.
 There are twenty two branches of an Allied bank in Sukkur district most famous are
Kamber, Larkana, Shahdadkot. Others are also scattered from Moro to Nawabshah.

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

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Mid-Level Managers
Mid-level managers, or middle managers, are a step above the first-level managers. These
managers are still involved in the daily company operations, but they depend on the input of
first-level managers. Mid-level managers are operations managers or general managers, but they
can also serve as regional managers.
First-level Managers
First-level managers, sometimes called lower-level managers, are at the bottom of the
management hierarchy. They are in contact with nonmanagement employees that involve the
day-to-day business operations. Their tasks often include scheduling, budgeting, human
resources activities. Mr. Irfan and his same level managers lie in first-level managers.
How are the “learning” resources arranged?
Mr. Irfan told that there are so many training programs for employees. Training and
development programs are used to teach employees and give them knowledge about hard as well
as soft skills. They arrange meetings and conferences to teach employee if there is new software
acquired in bank. For example: Bankers may use money counting machines to carry out their
tasks. So they are taught about technical knowledge by conferences they are given the demos
about new software.
For employee training and development to be successful, management is providing well-crafted
job description. In which almost everything is written like, what are the long-term goals of the
organization and what are the implications of these goals for employee development? According
to them there is support of senior staff to junior staff in their learning.
How roles and duties are assigned?
Tasks are divided among employees said Mr. Irfan. He explained as being operational manager
he has to manage client. They had given the duties to know the financial needs of clients and also
their financial positions. General Managers like Mr. Ali Akbar and Mr. Farhan are there to check
and balance overall system of bank. CEO gives the orders and all subordinates implement on it.
General Managers check that all functions are being performed properly or not. Some of these
functions are:
 Advising clients on matters related to loans, investments, securities and savings. Their
financial advice not only helps clients to solve financial needs, but also increases their
firm’s profits. That is done by almost every banker.
 Keeping records and properly filing all the documents.
 Client assistant have some duties. He meets with the customer and determines what
assistance he needs. For instance, he can arrange a student loan for students (clients).
Reviewing the customer’s financial history is important in determining bank’s ability to
meet his financial needs.

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 Account manager is assigned for assisting clients to manage their accounts.
Management of these accounts helps a customer to open or close his account if he so
wishes. Reviewing clients’ financial histories and informing them of any account
packages is another important function in assisting them to manage their accounts. Bank
would not disclose a client’s financial position to anyone without his permission.
How is the process of stress management carried out in the
company?
To reduce stress managers monitor each employee's workload. Managers also care for culture so
that it should be free from stress for employees. That no one gets stressed from bullying or such
a kind of things in the office. Schedules and timings are flexible for employees. Mr. Irfan told
that mostly they are free from work till 6:00 or 7:00 pm in summers. Social interaction and no
discrimination are usually adopted so that employees feel free and they can focus on their work.
Another thing is telling them about rewards that they may get if they do better. But they are not
threatened with punishments.
What are the power-and-politics-related issues of the company?
How are they handled?
Like everywhere in Pakistan, In Allied bank is also politics. The party system has also existed
there, but the company is trying to handle all the problems. Even it is mostly successful in
handling such problem.
When there is time to give rewards or bonuses to employees. General Manager sometime be
biased and they mostly used to reward their relatives or friends or their known people. Then this
issue was paid attention and a separate business department is also made in the bank. So this is
not the case now. After forming that department unions were made against it but now there are
dissolved.
Are there any communication issues faced by the company? How
are they managed?
MR. Irfan: There are some old age people employed at Allied bank. They are not trained for
using new software and they even lack English speaking skills. Sometime communication issues
occur in the organization. Sometimes in an email and sometime face to face communication
problems occur. But there is such environment that youngsters are required to help them and all
employees are trained to communicate properly.
What is the given company doing for employee motivation?

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Generally, every way is used to motivate employees. In Bank pleasant lighting and normal
temperature is used. Some of the motivational slogans are written on walls. Birthdays of
employees are celebrated sometimes, and sometimes packets of food are used to motivate
employees in conferences. In Allied bank people are praised and rewarded for their work.
They yearly increase the salary of employees. And employees are also given the bonuses.
Sometimes their salary is doubled. There are training and transfers for them. Promotions are
mostly done in March, but specifically after three years. Even employees are given the chance of
going to Hajj if they want to go.
How leadership function is carried out at the company?
Leaders have some goals in their minds, but they are supportive for all subordinates. As Mr.
Irfan Abbasi is also operational manager. There are some subordinates that he has to manage, he
has to check and balance their performance. He is managed by his boss. He and other
operational managers are leaders but these are also managed by their leaders like General
Managers. They are not only leaders to give command and orders but he said that they also have
to take care of their subordinates. Sometime they also have to do work of their subordinates. Me
as interviewer observed that Dale Carnegie’s principles are also being used in bank.
 Subordinates are appreciated for their work
 Leaders collaborate with them
 If subordinates do any mistake intentionally or unintentionally, these are given the chance
to realize it and make it correct (as Mr Irfan said that whenever there occur any problem,
they try to manage it within department. And they try that upper-level manager should
stay away from these matters. Employees are motivated for cooperation)
What are the behavioral issues of the employees and how are
these handled by the company?
Behavior is important factor in Allied bank. Whenever new employee joins he is trained and told
about maintaining good behavior. Because members have to deal in good way with clients their
soft skills are focused.
Sometime behavioral issues occur in bank. Mr Irfan told that once staff members were
disappointed about their salaries and they formed unions. They threaten the managers that they
will go for strike some of employees talked weird about bank. When management heard that they
even tolerated staff’s not working in bank but managers were very angry when staff talked odd
about bank so this was managed efficiently. Staff that didn’t say anything odd they got little
increment and others were given threat even of decrement in their salary or they will be fired so

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everyone got lesson that reputation of bank is really important. And slowly and gradually all
unions were dissolved.
Leaders are encouraging now teamwork of employees.
As I mentioned earlier, that if subordinates do bad behavior Operational managers try to tackle
all solution but they try that this matter should not go to upper-managers.
What checks are there to ensure that all functions are performed
properly?
As all people are not equally efficient to work so there is checking system for them. Managers do
visit to look after functions that are being carried on in bank. Cameras are also there so that there
should not be any unethical behavior in banks.
And if we talk about hard skills, checking of financial statements are done by special auditors
like sometime Sidat hyder comes. And mostly MR Rafiq audits the company’s financial
statement.
Any other data adding value to your report
Nowadays Staff shortage is there in Allied bank. Account opening is centralized. Accounts are
opened quickly but account verification takes three days. To become a banker, a person needs a
bachelor’s degree in economics, accounting, business administration or finance. Analytical,
math, organizational and communication skills are also needed. It is a full-time job, and bankers
have various roles.
THANKS
Special thanksto
MR. IrfanAbbasi
Who welcomed me, and
sincerely told me abouthisbank,
and he also provided me some
material and websitesabouthis
bankto know abouthistory and
hierarchy of bank.

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