Bank Al-Falah was established in 1997 as a commercial bank and provides various banking services through over 100 branches across Pakistan. The document discusses Bank Al-Falah's planning processes including goals, strategies and factors considered, as well as its organizational structure, leadership approaches, controls, ethics, culture and design. It also outlines the bank's history, management team, and approaches to planning, organizing, leading, controlling and other functions.

1. PREFACE
The project report “Management of Bank Al-Falah” is about the all views of its
management, including the current & past over all progress & process of Planning,
Organizing, Leading, Controlling, Ethics, Culture & Organization design.
The process which is being followed & running presently, of Planning, Organizing,
Leading, Controlling, Ethics, Culture, Organization design and Position of whole
Organization in our Nation are also being discussed in detail in this report.
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2. Introduction of Bank Al-Falah-------------------------------------------------------------------------05
Mission & Vision----------------------------------------------------------------------------------------08
Chairperson’s Message---------------------------------------------------------------------------------09
Historical Overview-------------------------------------------------------------------------------------10
Board of Directors---------------------------------------------------------------------------------------11
Management----------------------------------------------------------------------------------------------12
1. Planning----------------------------------------------------------------------------------------------14
1.1. Definition---------------------------------------------------------------------------------------15
1.2. Types of Planning------------------------------------------------------------------------------
15
1.3. Goals / Objectives-----------------------------------------------------------------------------16
1.4. Process of Planning----------------------------------------------------------------------------17
1.5. Types of Strategy------------------------------------------------------------------------------18
1.6. Internal & External Factors-------------------------------------------------------------------18
1.6.1. Internal Factors-------------------------------------------------------------------------
18
1.6.2. External Factors------------------------------------------------------------------------19
1.7. SWOT Analysis--------------------------------------------------------------------------------20
1.8. BCG-Matrix------------------------------------------------------------------------------------22
1.9. Decision Making Authorities-----------------------------------------------------------------
23
2. Organizing-------------------------------------------------------------------------------------------24
2.1. Bank al-Falah’s Structure---------------------------------------------------------------------25
2.2. Purpose of Organizing------------------------------------------------------------------------26
2.3. Bank Al-Falah’s Management Chart--------------------------------------------------------26
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3. 2.4. Finance Department---------------------------------------------------------------------------27
2.5. Marketing Department------------------------------------------------------------------------28
2.6. IT Department----------------------------------------------------------------------------------29
2.7. Centralization vs. Decentralization----------------------------------------------------------30
2.8. Type of Organization--------------------------------------------------------------------------30
2.9. Human Resource Management (HRM)-----------------------------------------------------31
2.10. Communication---------------------------------------------------------------------------
-----33
3. Leadership--------------------------------------------------------------------------------------------
35
3.1. By Early Leadership Theories---------------------------------------------------------------36
3.1.1. Formal vs. Informal-------------------------------------------------------------------36
3.1.2. Traits of Leader------------------------------------------------------------------------36
3.1.3. Type of Leaders------------------------------------------------------------------------37
3.1.4. Managerial Grid------------------------------------------------------------------------
37
3.2. By Contingency Theories---------------------------------------------------------------------38
3.2.1. Fiedler’s Model------------------------------------------------------------------------38
3.2.2. Situational Theory---------------------------------------------------------------------38
3.2.3. Goal-Path Model-----------------------------------------------------------------------38
3.3. Leadership Behaviors-------------------------------------------------------------------------39
3.4. By Motivation----------------------------------------------------------------------------------40
3.4.1. Early Theories of Motivation--------------------------------------------------------41
3.4.2. Contemporary Theories of Motivation----------------------------------------------
41
4. Control------------------------------------------------------------------------------------------------43
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4. 4.1. Testing the system of internal control-------------------------------------------------------44
4.2. Separation of Duties---------------------------------------------------------------------------45
4.3. Security------------------------------------------------------------------------------------------
45
5. Ethics-------------------------------------------------------------------------------------------------46
5.1. Approaches to Ethics--------------------------------------------------------------------------
47
5.1.1. Utilitarianism Approach--------------------------------------------------------------47
5.1.2. Individualism Approach--------------------------------------------------------------47
5.1.3. Right Approach------------------------------------------------------------------------47
5.1.4. Justice Approach-----------------------------------------------------------------------47
5.2. Strategies for Managing Stakeholders------------------------------------------------------48
5.2.1. Confrontation Strategy----------------------------------------------------------------48
5.2.2. Damage Control Strategy-------------------------------------------------------------48
5.2.3. Accommodation Strategy-------------------------------------------------------------48
5.2.4. Pro-active Strategy--------------------------------------------------------------------
48
6. Culture------------------------------------------------------------------------------------------------49
6.1. Types of typologies----------------------------------------------------------------------------50
7. Organization design---------------------------------------------------------------------------------52
7.1. Types of Organization Design---------------------------------------------------------------
53
8. Conclusion & Suggestions-------------------------------------------------------------------------54
8.1. Conclusion--------------------------------------------------------------------------------------55
8.2. Suggestions-------------------------------------------------------------------------------------55
Reference-------------------------------------------------------------------------------------------------56
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5. 13

6. Bank Al-Falah was incorporated on 21st June, 1997 as a public limited company under the
Companies Ordinance 1984. Its banking operations commenced from 1st November, 1997.
The bank is engaged in commercial banking and related services as defined in the Banking
companies ordinance, 1962.
Bank Al-Falah Limited is a Pakistan-based bank, engaged in commercial banking and related
services. The services offered by the Company include Branch banking, Consumer banking,
Electronic banking, corporate banking and Treasury and Investment.
Its Branch banking services include direct and indirect Foreign Currencies Remittance
facility, Foreign Trade and Correspondent banking and safe Deposit Locker facilities.
Through Consumer banking, the Company offers Credit cards, Home Loans, Rupee Traveler
checks, Auto loans, and Money-Gram, which is a person-to-person money transfer service.
Its Electronic banking services include Phone banking, Automated Teller Machines (ATM)
and On-line banking. Its Treasury and Investment services include Financial advisory
services, and services for the money market and foreign exchange market. Its corporate
banking activities include Trade finance and structured finance.
The Company offers services through a network of 142 branches and 59 ATM machines.
These branches are in the following cities of Pakistan.
• Abbott Abad • Chitral • Haroonabad
• Ahmedpur East • D.G.Khan • Hasilpur
• Arifwala • D.I.Khan • Hayatabad
• Attock • Daharki • Heart
• Bahawalpur • Daska • Hyderabad
• Bannu • Fasialabad • Islamabad
• Bhalwal • Ghotki • Jhang
• Burewala • Gilgit • Jhelum
• Chakwal • Gujranwala • Karachi
• Chaman • Gujrat • Kasur
• Chichawatni • Hafizabad • Kharian
• Chiniot • Hangu • Kohat
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7. • Kotla • Mirpur Khas • Sadiqabad
• Lahore • Multan • Sahiwal
• Lala Musa • Nawabshah • Sailkot
• Larkana • Okara • Sargoda
• Mandi • Pakpattan • Sheikhupura
Bahauddin • Peshawar • Sukkar
• Mansehra • Quetta • Toba Tek Singh
• Mdardan • Rawalpindi • Wah Cantt
• Mian Chunnu • Rhaim-Yar-
• Mingora/Swat Khan
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8. MISSION & VISION
Mission
“To develop and deliver the most innovative services, products, manage customer experience,
deliver quality service that contributes to brand strength, establishes a comprehensive
advantage and enhances profitability, in this way providing value to the stakeholders of the
bank.”
Vision
“To be the premier organizations operating locally & internationally that provides the
complete range of financial services to all segments under one roof.”
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9. CHAIRPERSON’S MESSAGE
“Our core philosophy of honesty, transparency in customer dealings, product innovation,
excellence in customer services and our commitment to being a responsible corporate citizen
pervades this website.”
Since the inception of Bank Al-Falah, by the grace of the Almighty Allah, we have moved
rapidly in expanding our branch network and deposit base, along with making profitable
advances and increasing the range of products and services. We have made a break-through
in providing premier services at an affordable cost to our customers.
Keeping in view our valued clients and the need for constant and effective communication of
information, we have designed this website to be as user-friendly as possible.
As we pursue the path of excellence, customer satisfaction remains our priority. It is only
when we know our customers better, can we deliver a higher quality of services, thereby
adding synergy to our existing management expertise, financial strength and profitability.
This is yet another channel of communication for the delivery of quality products and
services that enhance value to our stakeholders.
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10. HISTORICAL OVERVIEW
Bank Al-Falah Limited was incorporated on June 21st, 1997 as a public limited company
under the Companies Ordinance 1984. Its banking operations commenced from November
1st, 1997. The bank is engaged in commercial banking and related services as defined in the
Banking companies ordinance, 1962. The Bank is currently operating through 104 branches
in 36 cities, with the registered office at B.A.Building, II.Chundrigar, Karachi.
Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the
management of the bank has implemented strategies and policies to carve a distinct position
for the bank in the market place.
Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals
set out by its board of management, the Bank has invested in revolutionary
technology to have an extensive range of products and services.
This facilitates our commitment to a culture of innovation and seeks out synergies with
clients and service providers to ensure uninterrupted services to its customers. We perceive
the requirements of our customers and match them with quality products and service
solutions. During the past five years, we have emerged as one of the foremost financial
institution in the region endeavoring to meet the needs of tomorrow today.
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11. BOARD OF DIRECTORS
H.E. Sheikh Hamdan Bin Mubarak Al Nahayan
Chairman
Mr. Abdulla Nasser Hawalileel Al-
Mansoori
Director Mr. Ikram Ul-Majeed Sehgal
Director
Mr. Abdull Khalil Al Mutawa
Director
Mr. Nadeem Iqbal Sheikh
Director
Mr.Khalid Mana Saeed Al Otaiba
Director
Mr. Sirajuddin Aziz
Director & CEO
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12. MANAGEMENT
Mr. Sirajuddin Aziz
Chief Executive Officer
Mr. A. Wahid Dada
Group Head
Commercial Banking
Mr. Parvez A. Shahid
Co-Chairman Central Management
Committee
Mr. Hamid Ashraf
General Manager
Legal Affairs & Company Secretary
Mr. Shakil Sadiq
Chief Operating Officer
Mr. Zahid Ali H. Jamall
Chief Financial Officer
Mr. Arfa Waheed Malik
Group Head
Corporate & Investment Banking
Mr. Mohammad Iqbal Saifee
Group Head
Audit & Inspection
Mr. Ijaz Farooq
Group Head
Islamic Banking
Mr. Talib Rizvi
Group Head
Priority Banking & Wealth
Mr. Adil Rashid Management
Group Head
Consumer Finance
Mr. Tariq Mir
General Manager
International Business
Mr. Nadeem Ul Haq
Group Head
Operations Mr. Ather Shehab
Executive Incharge
Mr. Mohammad Yousuf Establishment & Administration
Group Head Mr. Mahmood Ashraf
Credit & Collections General Manager
Mr. Bakhtiar Khawaja Credit Monitoring
Group Head
Training & Development
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13. Mr. Falak Sher
Chief Compliance Officer
Mr. Haroon Khalid
General Manager
Risk Management
Mr. Imtiaz Ahmad Sheikh
General Manager
Information Technology
Mr. M. Mudassar Aqil
General Manager
Human Resource & Quality Assurance
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14. 23

15. PLANNING
1.1. Definition
Planning is
• Defining organization’s goals and objectives.
• Establishing overall strategies for achieving those goals.
• Developing a comprehensive set of plans to integrate and coordinate
organizational work.
1.2. Types of Planning
Bank Al-Falah use both formal and informal types of planning.
1.2.1. Informal
In informal planning, their planning is not written down, short term focus and
specific to an organizational unit.
1.2.2. Formal
In formal planning, their planning is written down, specific, long term focus
and involves shared goals for the organization.
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16. 1.3. Goals / Objectives
• Financial strength and Profitability by making profitable advances
• Customer satisfaction by providing higher quality of services at an affordable cost
• Growth by expanding branch network and deposit base
1.3.1. Short-term Objectives
• Profitability
1.3.2. Long-term Objectives
• Profitability
• To optimize the use of resources
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17. 1.4. Process of Planning
Process of Planning
Mission
Strategies
Plans
Programs
Policies
Rules
Budget
 Mission
Mission of Bank Al-Falah is to develop and deliver the most innovative products,
manage customer experience, deliver quality service that contributes to brand
strength, establishes a comprehensive advantage and enhances profitability, in this
way providing value to the stakeholders of the bank.
 Strategies
Strategies of Bank Al-Falah are giving loans and accepting deposits.
 Plans
Plans of Bank Al-Falah are short-term & long-term Advances & Deposits.
 Programs
Programs of Bank Al-Falah are up to one year or more than one year advances, fixed
account, current account etc, debit card, credit card etc.
 Policies
Policies of Bank Al-Falah are profitability, by making profitable advances and
customer satisfaction by providing best services at an affordable cost.
 Rules
Their rules are defined by upper level of management according to situation
 Budget
Bank Al-Falah always met its budget.
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18. 1.5. Types of Strategy
There are seven kinds of strategy:
• Cost Leadership Strategy
• Differentiation Strategy
• Focused Strategy
Bank Al-Falah is following the focused strategy. They are focusing on
customers by advancing and depositing.
1.6. Internal & External Factors
1.6.1. Internal Factors
HRM
HRM is playing both positive and negative role in the performance of
organization. Positively, HRM is performing its functions and managing the
human resource properly. On the negative side, sometimes HRM adopts the
policy of favoritism due to political pressure in managing human resource.
Structure / Infrastructure
Bank Al-Falah has sound structure and infrastructure.
Organizational Policies
Policies of Bank Al-Falah are favorable for customers.
Nature of Organization
Financial Institution.
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19. 1.6.2. External Factors
Technological Factors
Technologically, Bank Al-Falah is weak and this element is threatening to Bank Al-
Falah. Online Banking (advances, deposits, transactions etc.) is not working properly.
Political Factors
Politically, people are influencing on the performance of Bank Al-Falah. Particularly,
agricultural people get benefits due to relation to politicians. Such people are getting
advances and jobs on favoritism.
Physical Factors
Physical structure of Bank Al-Falah is very sound.
Demographic Factors
Population of Pakistan is a big number, which is supportive for bank.
Economic Factors
Population of Pakistan is rich which is beneficial for the bank.
Legal & Ethical Factors
Bank has legal entity and is taking care of ethics which is giving it advantage in
attaining customer attention.
Social & Cultural Factors
Social and cultural factors are affecting the bank. Majority of the population is un-
educated and unaware of the benefits of banking sector. They have low saving and
want to keep money with them.
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20. 1.7. SWOT ANALYSIS
The SWOT analysis is an extremely useful tool for understanding and decision-
making for all sorts of situations in business and organizations. SWOT is an acronym
for Strengths, Weaknesses, Opportunities, and Threats.
Growth Stability
Strengths (+) Strategy Strategy
(+ , +) (+ , -)
Stability Retrenchment
Strategy Strategy
Weaknesses (-) (- , -)
(- , +)
Opportunities (+) Threats (-)
Strengths
Following are the strengths of Bank Al-Falah:
• Brand
• Decent customer dealing
• Rapidly expansion in branch network
Weaknesses
Following are the weaknesses of Bank Al-Falah:
• Poor employee development and promotion
• Improper online Banking
Opportunities
Following are the opportunities of Bank Al-Falah:
• Improvement in online banking
• More customer satisfaction
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21. Threats
Following competitors are threats to Bank Al-Falah:
MS Global
Saudi Pak Bank
Habib Bank
Standard Chartered Bank
1.7.1. Essence of SWOT Analysis
Since Bank Al-Falah has decent strengths and opportunities in the market, its market
share is increasing and it is expanding its branch network rapidly, so the situation
tells us that Bank Al-Falah is adopting and implementing on Growth Strategy.
23

22. 1.8. Boston Consulting Group (BCG – Matrix)
?
Star Question
High (H, H) Mark
Business (H, L)
Growth
Rate Cash Cow Dog
Low
(L, H) (L, L)
High Low
Relative Position (Market Share)
Star
“The businesses, whose growth rate as well as market shares are very higher, and
those are leader of market, are categories as star.”
Cash Cow
“The businesses have big market share but their growth rate is low, and they
earn a large amount of cash due to their reputation, are categories as cash cow.”
? (Question Mark)
“The businesses, which are growing highly but their market share is low than
star’s businesses, are categories as question mark.”
Dogs
“The businesses, which have very low growth rate as well as market share, are
categories as dogs.”
Essence of BCG Matrix
“Bank Alfalah lies under the category of STAR in the BCG matrix, as their
growth rate and market share is very high.”
23

23. 1.9. Decision Making Authorities
1.9.1. Top Level of Management
Important and overall decisions of the bank are made by top level of
management. For example: Chairman
1.9.2. Regional Manager
Regional manager makes decisions at regional level.
1.9.3. Branch Manager
Branch manager makes decisions at branch level.
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24. 23

25. ORGANIZING
Managers work in organization. But what is an organization? An organization is a
deliberate arrangement of people to accomplish some specific purpose. Your banks,
university is an organization, colleges, govt. departments are all organizations because
they have three common characteristics.
First, each organization has a distinct purpose. This purpose is typically expressed in
terms of a goal or set of goals that the organization hopes to accomplish.
Second, each organization is composed of people. One person working alone is not an
organization and it takes people to perform the work that’s necessary for the organization
to achieve its goals
Third, all organization develop some deliberate structure so that their members can do
their work.
2.1. Bank Al-Falah’s Structure
Sweden’s premiere bank is one of the largest banks in the Nordic region. Lars
Grunted(pictured),president and group chief executive, oversees a business that is
organized around a decentralized structure with a network of some 540 branches in
Norway, as well as in nine European countries and six countries outside Europe. He
believes that the bank’s 30-plus years of developing its branch network has allowed it
to consistently grow market share and achieve a return on equality above the average
of its Nordic competitors are starting to copy Handelsbanken’s structural model.
Handelsbanken’s branch managers can choose their customers and product mix.
They also set staffing numbers and decide salary levels. All customers, private and
corporate, no matter what size, are the responsibility of a local branch.
Handelsbanken’s flat management structure and emphasis on personal responsibility
and consensus approach is well suited to the Swedish culture.
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26. 2.2. Purposes of Organizing
• Divide work to be done into specific jobs and departments in Bank Al-Falah.
• Assign tasks and responsibilities associated with individual jobs in Bank Al-Falah.
• Coordinates diverse organizational tasks in Bank Al-Falah.
• Establishes relationships among individuals, groups and departments in Bank Al-
Falah.
• Establishes formal lines of authority in Bank Al-Falah.
• Allocates and deploys organizational resources in Bank Al-Falah.
2.3. Bank Al-Falah’s Management Chart
• Management performs different functions in Bank Al-Falah.
• C.E.O (Chief executive officer)
o Controls the whole management affairs in Bank Al-Falah.
• Executive Incharge (E.I)
o Establishes the environment of strategic planning and aware of to hold the
global market.
o Manages the HRM and assigns work to individual for betterment.
o Divides the credit in different ways and allocation to safer place.
o Controls the administration activities and carries on the establishment
process for the betterment of Bank Al-Falah.
o Investigates the business development reports that our business gets profit
or loss.
o Analysis the audit and inspection division for efficient work.
o His work is to divide the cards in best manner, just like debit cards, credit
cards, ATM’s cards and Hilal cards in Bank Al-Falah.
o He did his work for international and treasury division in Bank Al-Falah.
34

27. o Divided the I.T (information technology).
o Supports the corporate and home finance.
o He monitoring the credit division.
o Investigates the legal affairs.
2.4. Finance Department
Finance is responsible in terms of money in all departments or monetary policies. It
is concern with more inflow of the cash that outflow of the cash in terms of Bank Al-
Falah.
Structured Finance
Established in 1998 in order to provide innovative investment banking services to our
valued clients.
A team of handpicked professionals, dedicated to syndicated loans and structured
products. The team’s expertise is well known in the marketplace with its capability to
assist public & private sector entities, major financial institutions, multinational
corporations, domestic & international institutional investors in innovative financing
including underwriting & private placements.
The scope of SFU’s activities also encompasses advisory assignments, such as
privatization, Mergers & Acquisitions (Man’s), domestic listings, IPOs and
restructuring.
During the past few years, SFU has been successful in sourcing and participating in a
number of prestigious transactions involving large amounts.
Some of the value added services offered by SFU include the following:
• Loan syndication
• Public floatation of Term Finance Certificates (TFCs) and equity
• Private placement of Term Finance Certificates (TFCs) and equity underwriting
• Guarantee syndications
• Financial restructuring
34

28. • Mergers & Acquisitions (M&As)
• Fostering joint ventures
• Privatization – Sale side and buyers side advisory
• Structuring new financial instruments
In the future, SFU is envisaged to supplement the enhanced profile and profitability
of Bank Al-Falah Limited through its value added services, through both asset
building and income generating aspects.
2.5. Marketing Department
Marketing department performs different functions in terms of Bank Al-Falah.
2.5.1. Sales
In Bank Al-Falah sales gets only in the light of the customer.
2.5.2. Need Identification
First of all, you identify your customer and how is your dealing with that
person.
2.5.3. Positioning
In Bank Al-Falah, what is your position to deal that person?
2.5.4. Targeting
What is your long term goal and short term goal according to Bank Al-Falah?
2.5.5. Promotion
It is concerned with all types of advertisement. Its purpose is to get more
customers in terms of promotion according to Bank Al-Falah.
34

29. 2.6. IT Department
2.6.1. ATM’s
Bank Al-Falah through its commitment to provide superior and improved
services to its valued customers, has unveiled a nationwide network of ATMs.
For your convenience, you now have access to instantaneous cash availability,
24 hours a day, 7 days a week.
Our ATM network is geared up to exploit the latest technology, and is
equipped to meet the highest standards of security and efficiency.
• With your new Hilal-Card you can now:
• Withdraw Cash
• Use our convenient, user-friendly fast cash option
• Make a Balance Inquiry.
• Get an instant printout of your account balances
• Get a printout of your last transactions (Mini-statement) on the spot.
• Change your PIN (Personal Identification Number).
Bank Al-Falah is pleased to introduce 55 state of the art ATMs, deployed at
the most convenient and accessible locations. Bank Al-Falah is a founder
member of the 1-Link Switch, thus making a country wide network of ATMs
available.
2.6.2. Online Banking
Bank Al-Falah now offers the facility of on-line banking to its customers
through its country wide network of branches. Customers can use the ATMs
or the banking counters of any branch for day-to-day banking needs,
irrespective of branch where they maintain their accounts.
For Corporate customers centralized Cash Management facility is also offered
through on-line banking.
34

30. 2.6.3. Phone Banking
"Al-Falah Phone Banking” is available to all customers on a countrywide
basis. Customers can dial 111-225-111 (without any city code/prefix) from
their respective cities i.e. 21 cities where Bank Al-Falah is present, and can get
prompt services from the Centralized Phone Banking Services.
Customers enjoy 24x7 Round the Clock Phone Banking Services.
Bank Al-Falah is the first bank in Pakistan to offer Centralized UAN
connectivity from 21 cities to its Call Centre with Hunting & ACD facilities.
2.7. Centralized vs. Decentralization
Centralized describes the degree to which decision making is concentrated at a
single point in the banking organization. If top managers make the banking
organization’s key decision with little or no input from below, then the
banking organization is centralized.
In Bank Al-Falah the major portion of organization is ‘Decentralized’, because
the Managers of all levels have the power of decision making.
2.8. Type of Organization
2.8.1. Tall vs. Flat
Bank Al-Falah is a Tall organization.
2.8.2. Multinational vs. National
Bank Al-Falah is a multinational organization.
2.8.3. Mechanistic vs. Organic
Bank Al-Falah is an organic organization.
2.8.4. Single vs. Branch
Bank Al-Falah is a branched organization.
2.8.5. Big vs. Small
Bank Al-Falah is a big organization.
34

31. 2.9. Human Resource Management (HRM)
HRM means to put the right man, for the right job, at the right time and at the right
place, so HRM deals with the fair job description as a whole in Bank Al-Falah.
Road-Map of HRM
The road-map through which HRM helps the managers to organize the activities of
man-power in Bank Al-Falah.
2.9.1. How HRM is important
A banking organization HRM practices have been found to have a significant impact
on organizational performance.
2.9.2. HRM process
Activities necessary for staffing the organization and sustaining high employee
performance in Bank Al-Falah.
2.9.3. HRM training and development
Bank Al-Falah’s HR management believes in developing the potential of the Bank’s
employees to the fullest extent. Training & Development Centre 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 centre is responsible for providing multi-level high quality
training programs 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
34

32. It is obligatory for each staff member of the bank to attend at least one training program.
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.
HRM Trade Department
Inspired by a challenging spirit and an unyielding desire to create a sound and reliable
networking of correspondent relationships, the bank has placed great emphasis towards it
growth. Accomplishing something for the first time requires a special focus. It demands
foreseeing possibilities. In our endeavor, to do so, we successfully surmounted problems
and difficulties arising out of issues relating to weak economic conditions of the
economy and a continuous deteriorating status of country risk.
The incertitude and skepticism of the international banking community towards financial
institutions from emerging markets remained intact. Our persistence during the past four
years allowed us to make significant inroads into the arena of correspondent banking.
Large international banks, after critically evaluating us, agreed to enter into relationship.
During 2002 we added 81 banks to our network of correspondents, bringing the total
number over 170. Of these relationships, there are now several banks that rank amongst,
the top financial institutions in the world. Our geographical coverage now extends to
over 100 countries, which is adequately compatible with our trade flows.
Our correspondents, during the year extended us unqualified support, which enabled us
to undertake a healthy quantum of foreign trade business. There are many challenges
ahead for the bank, in the coming year, our bank will not only continue to review its
efforts on existing correspondents to make the relationship more beneficial, but will also
add more correspondents to establish a comprehensive international networking to
facilitate our customer’s transaction as well as the Bank’s proprietary needs.
We have provided against the list of correspondents their world and country ranking.
These ranking have been taken from The Bankers Almanac – July 2001 issue.
We would like to emphasize that correspondent arrangements do not necessarily imply
the existence of account relationship. We are in the process of rationalizing our current
nostro account relationships. We shall continue to open new accounts in various
currencies based on our trade flows and business requirements.
34

33. Communication
The flow of information in Bank Al-Falah.
2.9.4. Direction of communication
Bank Al-Falah communication can flow downward, upward, laterally, or
diagonally.
Down-ward Communication
Any communication that flows downward from a C.E.O to employees is
downward communication.
Up-ward Communication
Any communication that flows upward from employees to C.E.O.
Lateral Communication
Communication that takes place among employees on the same level is called
lateral communication.
Diagonal Communication
Communication that cuts across both work areas and organizational levels.
34

34. 2.9.5. Communication Model
Message
Any type of message of Executive Incharge (E.I) to be conveyed.
Encoding
Converting a message into symbols.
Channel
The medium a message travels along.
Decoding
Retranslating an Executive Incharge (E.I) message.
Receiver
The seven elements involved in transferring meaning from Executive Incharge (E.I) to
another.
Feed back
Any disturbance that interfere with the transmission, receipts or feed back of a
message.
2.9.6. Types of Communication
Verbal & Non-verbal communication
Verbal communication means audiotape-communication conferences, radio in
Bank Al-Falah. Non-verbal communication means visual, sign board,
newspapers in Bank Al-Falah.
Audio - Video
Audio - Video means multimedia presentations, video conferences and
meetings in Bank Al-Falah.
Formal & Informal communication
Discussion between C.E.O and Executive Incharge is Formal communication.
Discussion between employees in Bank Al-Falah is Informal communication. 34

35. 34

36. LEADERSHIP
“The process of influencing a group of people towards the achievement of pre-selected
goals is called leadership.” & “The person who makes this process or who can influence
others / group of people and who has managerial authority is called a leader.”
The leader is needed by the every field & Organization, as well as the Bank Al-Falah has
its leader in the form of High qualified & skilled Managers, which are working hardly to
put the bank at the peak level as well as achieving the organization’s pre-selected goals.
3.1. By Early Leadership Theories
3.1.1. Formal vs. Informal
The leaders, Bank Al-Falah have, are the Formal leaders.
3.1.2. Traits of Leader
The leaders of Bank Al-Falah have the following Traits & Skills in
themselves.
• Decision making
• Risk taking & Risk bearing
• Stress taking & Stress bearing
• Communication Power
• Honesty
• Strong Vision
• Interpersonal skill
• Market forecasting skill
• Consistency
• Step forward
• Discipline
• Competitive skill 42

37. • Believe on Equality
3.1.3. Type of Leader
There are three basic types of leaders;
• Dictator
• Democratic
• Laissez-fair
But the Bank Al-Falah has the Democratic leaders.
Democratic leader
The leaders, Bank Al-Falah have, are the types of “Democratic”. Because the
major portion of bank is ‘De-centralized’, that’s why the each leader has the
complete power of decision making, but they are working “Collaboratively” in
whole organization with each other. All leaders of bank are involved in decision
making, delegating their authorities to their higher qualified employees,
encouraged the participation of their employees in work and gives them
opportunities of coaching in well manners.
3.1.4. Managerial Grid
“A two-dimensional Country Club Team / Ideal
grid of two leadership Management Management
behaviors, concern for
people and concern for Middle of Road
Concern Management
production / output, for
which resulted in five People
different leadership Impoverished Task
Management Management
styles is called
managerial grid.”
Concern for Output
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38. The behaviors of leaders of bank Al-Falah are lies in the “Team / Ideal Management”,
because all the managers are doing their work collaborative with each other and also
with their whole team of workers, they have as well.
3.2. By Contingency Theories
3.2.1. Fiedler’s Model
“A leadership theory that proposes that effective group performance depends
upon the proper match between a leader’s style of interacting with his / her
followers and the degree to which the leader to control and influence is known
as Fiedler’s model.”
The leaders of Bank Al-Falah have the proper match between the leaders’
styles and the degree.
Least preferred co-workers
All the leaders of Bank Al-Falah are Cooperative with their followers, and NO
one possess uncooperative attitude.
3.2.2. Situational Theory
“The leadership contingency theory that focuses on the follower’s readiness.”
In the Bank Al-Falah, this theory is also applicable because the followers /
employees of leader(s) are ready every time for do any task / mission or any
kind of work given by their leader(s). And all the Leaders or Managers are
also careful for giving any task or work to their followers that they are see
firstly that either their followers are ready for this job or not.
3.2.3. Goal-path Model
As above the all Leaders of Bank Al-Falah are very cooperative to each other
as well as with their followers, that’s why they are also providing the right
42

39. ‘Path / Direction’, after finding, to their followers on through they and their
followers could achieve their targets and goals.
42

40. 3.3. Leadership Behaviors
The leaders of Bank Al-Falah, in their behaviors, are;
Directive They provide the proper schedules, direction and guidance etc. to
their followers / employees, from through the employees can do the
specific work or task which has been given to them, to achieving their
and organizational objectives as well.
Supportive The leaders also give the proper attention on their followers /
employees and also help them in case of any trouble in achieving the
targets and tasks.
All the work is done in friendly atmosphere in the Bank Al-Falah.
42

41. 3.4. Motivation
“The process that account for an individual’s willingness to exert high levels of effort
to reach organizational goals, conditioned by the effort’s ability to satisfy some
individual need is known as Motivation.”
The motivation has a great role in the success of any field. The success ratio goes
higher when the leader motivates his / her followers to do the work or complete the
task, given to them in time. Sometimes the employees perform certain kind of
difficult & hectic tasks, that’s just because they get motivated by the employer /
concerned authorities.
The Leaders / Executives / Managers of Bank Al-Falah motivate their employees in
the above mentioned manner to achieve the best results.
3.4.1. Early Theories of Motivation
Maslow’s Hierarchy of Needs
The Leaders / Executives / Managers of Bank Al-Falah are very well
familiar with all the basic or extra needs, like Physiological needs,
Safety needs, Social needs, Esteem needs and Self-actualization needs,
of their employees.
That’s why they are handling their employees in same manner that
they are providing the basic, physiological and safety, needs to their
employees but when their employees perform with greater efficiency
for the Bank, then the concerned authorities or concerned management
staff provide them the Social, Esteem needs and Self-actualization’s
things as reward or as any else.
McGregor’s Theory X &Y
The Bank Al-Falah has the both type of employees ‘X’ & ‘Y’ in it. The
mostly employees of bank are the type of ‘Y’, so that the Leaders /
Executives / Managers of Bank are only motivates them, due to their
Activeness, Effectiveness and Seek Responsibilities, but the other type
of employees ‘X’, are Punished (not heavily) and Motivates by the
42

42. Leaders / Executives / Managers of Bank due to their some Laziness,
Avoiding of Responsibilities and Non-proper Interest in work.
Herzberg’s Hygiene Theory
Some of the employees of type ‘X’, in the bank feel like hygiene from
their job. That’s why the Leaders / Executives / Managers of Bank
have to face some difficulties to motivate them. But they are fully
managing them as well as whole organization in the best way. And
they are still removing those factors which are cause of the
dissatisfaction for their employees.
3.4.2. Contemporary Theories of Motivation
These theories and approaches are representing the current explanations of
employee’s motivation. These theories are;
• Three – Needs Theory
• Goal-Setting Theory
• Reinforcement Theory
• Equity Theory
According to these theories, the Leaders / Executives / Managers of Bank Al-
Falah motivate their employees in the same sense that their employees do the
work for achievements and they behave in the best way with everyone, so to
make a friendly atmosphere in the whole organization, for making a good
relationship with everyone.
The Leaders / Executives / Managers of Bank Al-Falah also provide the
sustention support to their employees that they make their full intentions
towards their goals for the best result.
The Leaders / Executives / Managers of Bank Al-Falah also provide the suitable
atmosphere to their employees, which belongs to category ‘Y’, that they ignore the
factors like goals, expectations of management and needs etc. but they should only be
42

43. focused on “What happen to a person when he / she do / takes some action?” This step
is helps to the employees of category ‘Y’ that they should do more than before for
organizational development, and they will get more benefits like Job Enlargement, Job
Scope, Job Enrichment and Job Satisfaction etc.
The Leaders / Executives / Managers of Bank Al-Falah are very careful regarding the
issues of ‘Discrimination’ and ‘De-motivation’ due to any discrimination. They are
fully avoiding those rules and regulations and anything which causes discrimination in
their organization. That’s why all the leaders believe on the ‘Equity’ and they are also
motivating their each of the employee as well.
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44. 56

45. CONTROL
4.1 Testing the System of Internal Controls
The general objective of testing controls is to obtain reasonable assurance that the
controls are in use and operating as planned. Sampling techniques are used in Al-
Falah bank. Tests should meet the following criteria:
4.1.1. Data Integrity
• Are the controls in place to ensure the integrity of the data?
• Are records up-to-date and accurate?
4.1.2. Documentation
• Are all systems, functions, processes, procedures, programs, and
activities clearly documented?
• Is the documentation readily available for examination?
• Are operating procedures adequate?
4.1.3. Recordation
• Are there records that show that controls are in use?
4.1.4 Supervision
• Are appropriate procedures in place for assigning, reviewing, and
approving work?
• Do the employees adhere to procedures for assigning, reviewing, and
approving work?
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46. 4.1.5 Authorization
• Are appropriate controls in place to ensure transactions and other
significant activities are authorized and executed only by authorized
personnel?
• Do employees adhere to the requirements of authorization only by
authorized personnel?
4.2 Separation of Duties
• Are key duties and responsibilities such as authorizing, processing,
recording, and reviewing separated among individuals?
4.3 Security
• Are appropriate procedures in place which limits access to resources
and records to authorized personnel?
• Do employees adhere to security procedures?
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47. 56

48. ETHICS
Ethics is a branch of philosophy which seeks to address questions about morality, such
as what the fundamental semantic, ontological, and epistemic nature of ethics or morality is
meta-ethics, how moral values should be determined, how a moral outcome can be achieved
in specific situations, how moral capacity or moral agency develops and what its nature is
moral psychology, and what moral values people actually abide by descriptive ethics.
5.1. APPROACHES TO ETHICS
5.1.1. Utilitarianism Approach
What is good for the most number of people states the utilitarianism
approach.
5.1.2. Individualism Approach
Any Ethical decision that can be for self interest until or unless it is not
harmful for anyone else.
5.1.3. Right Approach
In right approach, basic fundamental rights of human being are
protected until or unless yours decision are ethical
5.1.4. Justice Approach
In justice approach we treat everyone equally, fairly & consistently
Justice Approach is being adopted in Bank Alfalah 56

49. 5.2. STRATEGIES FOR MANAGING STAKEHOLDERS
5.2.1 Confrontation Strategy
In such a strategy one confronts the claims upon one’s self. The
company doesn’t admit the claims. Rather they prefer to face
the challenge.
5.2.2 Damage Control Strategy
In such a strategy we admit the claims and positively respond
to those claims by properly controlling the damage caused.
5.2.3 Accommodation Strategy
In this sort of strategy, the company provides the compensation
on the claims to the victims.
5.2.4 Proactive Strategy
The company is already prepared to face any kind of situation
in this type of strategy.
Bank Alfalah practices both damage control strategy as well as accommodation
strategy on the basis of the situation.
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50. 56

51. CULTURE
6.1 TYPOLOGIES RELATED WITH CULTURE
1st Typology
i) Traditional Culture
ii) Employee Involvement Culture
Traditional Culture
It is such a culture in which tall management structure as well as centralized decision
making is involved.
Employee Involvement Culture
In this culture flat management culture & decentralized decision making is adopted.
Employee Involvement culture is being adopted in Bank Alfalah.
2nd Typology
i) Baseball team culture
ii) Club Culture
iii) Academy culture
iv) Fortress Culture
Baseball team culture is being adopted in Bank Alfalah.
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52. 3rd Typology
Bank Alfalah lies under the category of Entrepreneural culture.
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53. 56

54. 7.1. TYPES OF ORGANIZATION DESIGN
Mechanistic organization design
• Rigid hierarchy structure
• High Formalization
• Decision making is Centralized
• Specialized jobs are narrowly defined
• Emphasize on individual working
• Communication is Top Down
Organic organization design
• Collaborate hierarchy structure
• Formalization is Weak
• Decision making is decentralized
• Improved both ways Communication
• Jobs are broadly defined
• Emphasize on group working
Boundary less organization design
• Collaboration is within and outside the organization
• Formalization is low
• Communication is both ways
• Decentralized decision making
• Jobs are broadly defined
• Emphasize on teamwork outside the organization
Bank Alfalah has organic organization design
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55. 56

56. CONCLUSION & SUGGESTIONS
8.1. Conclusion
The Bank Al-Falah has a significant progress in the banking sector, and it has
achieved this position in a very short time period, just in 3 years in Pakistan. The
Bank Al-Falah has a great share in the market as well as high growth rate as compare
to the all other banks, due to its best Customer dealing, Compensations to Customers
and Employees as well and Organizational Control due to the best & powerful
Planning, Leading and Controlling sectors.
As there is no doubt that Bank Al-Falah is best in its field, but it has also some weak-
points like some of resources are still un-utilized and the political pressure of
References regarding the posts in the organization.
Over all the Bank Al-Falah has proved to be the best bank in the whole banking
sector, due to the fact that its weaknesses are not more than its strengths.
8.2. Suggestions
Following are the some suggestions, which will help the Management of bank Al-
Falah in more effective control and greatest position, are;
• The bank should improve its On-line banking.
• They need to eliminate the Reference culture from their bank.
• The bank needs to expand the Network of their Braches, overseas.
• They should try to minimize their threats by proper planning.
• They need to focus more on the Consumer banking, because this field requires
more attention and growth.
• They need to improve & grow the Employee development progress & plans.
• They need to decrease their rate of interest on deposits to compete their
competitors.
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57. REFERENCES
1. Visit of Bank Alfalah, College Road – Branch
2. www.bankalfalah.com
3. www.en.wikipedia.org
*~*~*~*~*~*~*~*~*~*
56

58. REFERENCES
1. Visit of Bank Alfalah, College Road – Branch
2. www.bankalfalah.com
3. www.en.wikipedia.org
*~*~*~*~*~*~*~*~*~*
56

59. REFERENCES
1. Visit of Bank Alfalah, College Road – Branch
2. www.bankalfalah.com
3. www.en.wikipedia.org
*~*~*~*~*~*~*~*~*~*
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