HRM Project Presentation-1
HRM Project Presentation-1
HRM Project Presentation-1
S. No Details page
1 Introduction
6 Recommendation
Introduction
proactive and strategic. Global firms see HRM as a way to gain and maintain human capital
advantage. However, Pakistan still has challenges adopting this shift fully, facing struggles in
the public and private sectors. This presentation focuses on HRM practices at Allied Bank, a
pioneer in formalized HRM in Pakistan's banking sector.
Activities Conducted under the Umbrella of HRM
Human resource management supports various business functions and involves tasks like
recruitment, training, compensation planning, and appraisals. Its vision is to create value for
the organization by ensuring the right talent is in place and maintaining employee work-life
quality. The global practices in HRM include
1- HR planning
2- recruitment
3- performance management,
4- reward management,
5- training and development
6- employee relations.
Activities Conducted under the Umbrella of HRM
Planning:
Human resource planning identifies HR needs, answers key questions
about required workforce and types of talent, and involves forecasting
labor needs and matching supply with demand. It also aids in deciding
how to acquire labor, whether from internal or external sources, self-
recruitment or outsourcing, and for full-time or contract-based
positions.
Activities Conducted under the Umbrella of HRM
recruitment
performance management,
reward management,
Employee Relations
The HRM function at Allied Bank Limited has a significant role within the organization. It
evolved from "Administration and Human Resource" to "Human Resource &
Remuneration Committee," placed alongside other managerial functions like Strategic
Planning and Finance. The committee, led by Mr Abdul Aziz Khan and three other
members, is responsible for activities such as:
At Allied Bank, HRM is strategically aligned with the organization's needs and
business strategies. The HR executives ensure seamless integration of HR issues
during change processes. Information technology, including HCMS and HRIS, is
utilized to automate processes and improve efficiency.
HR Planning and Job Analysis
The bank follows a systematic approach for recruitment, preferring individuals with
diverse skills and industry experience. Permanent contracts are preferred, and a
sophisticated induction program aims to increase commitment and reduce turnover.
Employee separation is voluntary, with no lay-off policy, and exit interviews are
conducted to understand reasons for leaving.
Training and Development
At Allied Bank, training and development are highly emphasized. They invest in in-house
and external programs, utilizing technology through an e-Learning Portal. Training needs
are identified individually or in groups, with a focus on short-term needs. Various areas,
such as
customer service and technical skills, are covered in the training.
Evaluation criteria include learner's reaction, knowledge acquisition, and behavioural
changes.
Performance Appraisal
The bank conducts comprehensive performance appraisals for all employees, using both
result-oriented and behaviour-oriented approaches. However, employee involvement in
setting standards is limited, and 360-degree feedback is absent. Appraisal results are used to
determine rewards, compensation, and employee motivation.
Reward Management
At Allied Bank, employees are rewarded based on performance, with pay close to market
standards. Performance and competence are the main criteria, and additional rewards include
recognition, awards, and bonuses. The overall package includes managerial remuneration,
benefits, and allowances. While productivity is the focus, employee retention, talent
attraction, and cost minimization are also considered. Profit sharing and share schemes are not
part of the reward practices.
Talent Management
Allied Bank highly values talent and has a formal career planning and development policy.
They utilize potential appraisal processes and performance information for employee
development. Internal employees are preferred for promotions, and the HR department
nominates employees for advancement before the Board of Directors.
Employee Relations and Knowledge Management
Allied Bank prioritizes individual employee relations and offers negotiation opportunities.
Administrative principles focus on progressiveness and prevention. Communication efforts
generate awareness of financial position, customer needs, and quality of services. Knowledge
flow uses intranet and groupware, with top-down communication more prevalent.
Universal Best Practice Model of HRM
"Best practices in HRM" focus on employment security, selective hiring, extensive training,
employee involvement, self-managed teams, high performance-based compensation, and
reduction of status differences. Organizations implementing these practices tend to perform
better and gain a competitive advantage through improved performance and employee
development.
Conclusion
The analysis shows that Allied Bank values its human resources and aims to create value for
both employees and the organization. HRM is relatively new in Pakistan, but it is well-
positioned in the banking sector. The bank follows contemporary HRM practices but lacks full
stakeholder involvement due to cultural and demographic differences. The HR activities align
closely with Pfeiffer's best practice model, but improvements are needed in employee
involvement, empowerment, and profit sharing. Employees have limited autonomy in authority
and responsibility.
Recommendations
Based on the analysis, the following recommendations are made for Allied Bank's HRM
activities: