report. ific.nadia.31.12.11

“HR practices in Banking Sector: A study on IFIC Bank

EXECUTIVE SUMMARY

The report covers the three months thesis program as the BBA requirements. I have

worked with the “HR practices in Banking Sector: A study on IFIC Bank. The

objective of the Thesis paper is to analyze the Overall Personal Practices of the

employee at IFIC Bank Ltd.

Bank is a financial institution. The economy is mostly depended on this financial

institution since it facilities the economic and financial transactions. Every industry

large, medium & small is absorbing the facilities of branch banking provided by bank.

I have divided this report in eight Chapters. Firstly, the report begins with an

Introduction. Where objective of the report its background and methods are presented.

Secondly, I have tried to highlight the historical background of Banking and some

major detail of IFIC Bank Ltd.

Chapter three and four are basically literature reviews. I have divided it in two parts to

show some HRM overview in chapter three and in chapter four more in-depth

highlights of Human Resource Management tools and techniques.

Chapter five and six are the presentation and analysis of the data that. And after the

analysis the problems that we found at IFIC Bank’s HR are shown in chapter seven.

And finally the report ends with recommending some suggestion for IFIC bank Ltd.

Prepried By Farzana Asad1



CHAPTER ONE

INTRODUCTION


CHAPTER 1INTRODUCTION

1.1 BACKGROUND OF THE REPORT

This report is being prepared as a requirement of Project work and also for fulfillment

of BBA program at STAMPFORD UNIVERSITY. I have examined the Employment

of personal practice of IFIC Bank Ltd.

This report was prepared under direct supervision of my project supervisor PROF DR.

ZEENNAT ARA BEGUM faculty of Business Administration Department,

STAMPFORD UNIVERSITY. My topic was duly approved by the department as it

was directly related to understand Employment of personal practices need assessment

of IFIC Bank in Bangladesh.

1.2 OBJECTIVES OF THE REPORT

Broad objectives:

Broad objective of this report is to meet the partial requirements for the fulfillment of

BBA program.

Specific objectives:

In specific objective I have to prepare a sound report that must be reliable and

dependable for the Bank’s officials.

The specific objectives to help in explaining the broad objectives are as follows:

To find out how Employment of personnel practices system works.

To suggest remedial measure how they can increase deposit for the development

Bank.



1.3 SCOPE OF STUDY

The report is concerned with the HR Divisions of selected bank and concerned with

the comparison of HR Divisions and their Employment of Personnel practices in

Banking Sector with IFIC Bank Ltd.

1.4 METHODOLOGY

The nature of this report is descriptive, so instead of doing any survey or using

sampling method, observation method is used to complete this qualitative research.

Most of the necessary information has been collected by face-to-face interview with

the people, personal investigation with bankers, circulars sent by Head Office.

Primary Source:

Major source of information were collected from HR division as well as from other

Employees of IFIC Bank Ltd. In addition, in some cases information also collected

from face to face question answer from branch manager.

Secondary Source:

The organization part of the report is mainly based on secondary data. These data

were gathered from different report, service rules, Head Office Circulars, Leaflets of

IFIC Bank Ltd, annual reports, prospectus, from their websites and other publications.



1.5 LIMITATION

o Major part of the report is based on the face-to-face interviews, which

consists of view and opinions of those people. In some cases some of them

were not able to provide concrete facts or figures. In this case as well some

assumptions had to be made.

o IFIC Bank Ltd do not have as much employees as they needed to serve

their needs for HR Divisions.

o Some important duties are done by the entry level employees that are not

being considered their job because it can occur a lot of errors.

o The officers were very busy with their daily work, they could hardly

provide little time to discuss with them.

o Finally, the nature of information of the project part is somewhat

confidential and critical to analyze. It was quite difficult to have the

sufficient knowledge and understanding in that particular field, in a short

period of Internship program.




CHAPTER TWO

INTRODUCTION OF BANK& IFIC BANK


CHAPTER 2INTRODUCTION OF BANK & IFIC BANK LTD.

Bank is an establishment which makes such advances of money to individual, as may

be required with which individuals entrust money when not required by them for use.

A bank is one, who in the ordinary course of his business receives money which he

repays by honoring cheques of persons from whom or on whose account he receives

it. Banks deal mainly with money and credit. They purchase and sell money and

credit.

Evolution of the Word “Bank”:

Etymology deals with the roots and origin of the word ‘bank’. Regarding etymology

or origin of the word bank there is no unanimous opinion among the writers of

banking. According to some writers the word bank derived from the word BANCO,

BANCUS, BANQUE, and BANC, all of which mean bench upon which the early

bankers used to display their coins and transact business in the market place.

According to the some other writers the word ‘bank’ has been derived from the

German word ‘BANKE’ which means a joint stock fund. The 1st version is widely

accepted because at one time the banking history, money changing was looked upon

as the most widely accepted function of a banker. Banking in the ancient times was

largely confined to money changing and money lending.

Emergence of Modern Banking:

In middle Europe the bankers of Lombardy were very famous. To them belongs the

credit of modern banking. In other words they planted the seed of modern banking in

England. They settled in London at a place known as Lombard Street.

Florence was the capital of Lombardy. Lombardy was a province in North Italy. Most

of the prominent bankers of there present were from Lombardy. Among those

prominent bankers we can named one who were famous not only in banking but also

in political history in Europe. These Lombardy people were very much disturbed in

13’s by internecine work which was followed by plunder by Kaiser Frederick two.



Lombardy people in large number as a result started migrating to more settled

countries such as England, French, and Belgium. In England these Lombardy people

brought the idea of modern banking and thus England becomes the home of modern

banking.

Bank Development in Bangladesh:

Indigenous banking in Bangladesh is as old as banking in other parts of the world.

Money used to be accepted as a deposit and advances used to be given. During

Mughal period, indigenous banking flourished. The Subarna bank the bullion trading

community used to do banking in the then Bengal. Subsequently, larger banking in

Bangladesh was gradually taken over by the upcountry bankers who were known as

Seth, shah etc. but subarna baniks continued to operate in rural Bengal. With the

British gradually coming over to Bengal and settling here, banking in the form of

agency house, exchanging house started to flourish in kolkata. Entry of the Bengalese

into banking started in the part of this century, especially in the wake of the swadeshi

movement.

In 1947 after the separation of Bengal, bank business faced a severe disaster as non-

Muslim bankers migrated to India. In order to rebuild the bank business State bank of

Pakistan was established as a central bank of Pakistan in 1948.

Severe disaster as non-Muslim bankers migrated to India. In order to rebuild the bank

business State bank of Pakistan was established as a central bank of Pakistan in 1948.

In 1971 Bangladesh became independent. After liberation “Bangladesh bank was

automated with the asset and liabilities of former “State bank of Pakistan”. There

were several banks before independence of Bangladesh as follows:

The national bank of Pakistan The union bank ltd.

The bank of Vowalpur ltd. The Muslim commercial bank ltd.

The premier bank ltd. The standard bank ltd.

The Habib bank ltd. The Australasia bank ltd.

The commerce bank ltd. The eastern mercantile bank ltd.

The united bank ltd. The eastern banking corporation ltd.

Bangladesh Bank nationalization Order promulgated on 26 March in 1972. After the

liberation war the above 1st three banks were converted to The Sonali Bank, The 2nd

two banks were converted to The Agrani Bank, the next two banks were converted to



The Janata Bank, the next three banks were converted to The Rupali Bank, the next

one bank was converted to The Pubali Bank and the last bank was converted to The

Uttara Bank.

Concluding Note:

Today’s bank in Bangladesh has not developed over night. Before and after

independence of Bangladesh the concept of bank was developed in Bangladesh

gradually. So I can easily say that bank history is as ancient as the human civilization.

IFIC Bank Ltd

International Finance Investment and Commerce (IFIC) Bank Limited started banking

operations on June 24, 1983. Prior to that it was set up in 1976 as a joint venture

finance company at the instance of the Government of the People's Republic of

Bangladesh Government then held 49 percent shares while the sponsors and general

public held the rest. The objectives of the finance company were to establish joint

venture Banks Finance Companies and affiliates abroad and to carry out normal

functions of a finance company at home.

When the Government decided to open up banking in the private sector in 1983, the

above finance company was converted into a full-fledged commercial Bank. Along

with this, the Government also allowed four other commercial Banks in the private

sector. Subsequently, the Government denationalized two Banks, which were then

fully Government-owned.

While in all these Banks Government held nominal 5 percent shares, an exception was

made in the case of this Bank. It retained 40 percent shares of the Bank. The decision

by the Government to retain 40 percent shares in IFIC Bank was in pursuance of the

original objectives, namely, promotion of joint participation of Government and



private sponsors to establish joint venture Banks, financial companies, branches and

affiliates abroad.

The Bank started with an authorized capital of Tk.100.00 million in 1983. Paid-up

capital was then Tk.71.50 million only. Over the last Twenty One years, the

authorized & paid-up capital has increased substantially. Authorized capital was

Tk.500.00 million and the paid-up capital stood at Tk.406.39 million as on December

31, 2004.

The Bank has built up a strong reserve base over the years. In last twenty one years its

reserves and surplus have increased significantly. This consistent policy of building

up reserves has enabled the Bank to maintain a better capital adequacy ratio as

compared to others.

With the active support and guidance from the Government, the Bank has been

showing a steady and improved performance. In its twenty One years of operations,

the Bank has earned the status of a leading Bank in terms of both business and

goodwill.

Starting with a modest deposit of only Tk.863.40 million in 1983 the Bank has closed

its business with Tk. 20,774.49 million of deposit as on December 31, 2004. The

annual growth rate has mostly been higher compared to both Banking sector growth

and individual growth rates achieved by others.

As against a profit of Tk.21.94 million in 1984, the Bank earned a record profit of

Tk.700.25 million for the year ended on December 31, 2004.

Mission of IFIC Bank Ltd.

Bank's Mission: Quest for Excellence

The Mission of IFIC Bank limited is to provide service to its clients with the help of a

skilled and dedicated workforce whose creative talents, innovative actions and

competitive edge make its position unique in giving quality service to all institutions

and individuals that they care for.



They are committed to the welfare and economic prosperity of the people and the

community, for they drive from their inspiration and drive for onward progress to

prosperity.

They want to be the leader among Banks in Bangladesh and make their indelible mark

as an active partner in regional Banking operating beyond the national boundary. In

an intensely competitive and complex financial and business environment, they

particularly focus on growth and profitability of all concerned.

Board of Directors

Board of Directors of IFIC bank limited contains 10 members which includes one

chairman (Salman F. Rahman), one managing director (Mohammad Abdullah), and

eight directors. Out of ten members chairman and four directors are elected

themselves and they are classified as “A” class shareholders. Rests are nominated

directors and “B” class shareholders.

Operational Network of IFIC Bank Limited

A group segment of Head Office operation of the Bank mainly handles General

Advance/ Credit Portfolio, Project finance excluding Overseas Operations of the Bank

and Lease Financing. The Group is headed by Senior Executives having

commendable professional knowledge and experience supported by a talent pool of

MBA's, Engineers, Economists, and Statisticians etc. with the blending of credit

experience.

Products and Services of IFIC Bank Ltd.

IFIC Bank Ltd. offers some financial products and services under different categories

as mentioned below:

Q-cash Banking service

Term deposit scheme

Inward and outward remittances

Import finance

Export finance

Working capital finance

Loan syndication



Trade finance

Industrial finance

Foreign currency deposit

Lease finance etc.

Corporate Banking

IFIC Bank is providing a wide range of financial services, offering specialist advice

and products to corporate clients to meet diverse demands of changing market

scenario. We have expertise to customize products & services to meet specific

requirements of our clients. We are committed to serve our customer with extensive

branch net work all over the country to expedite our client's business growth. We

facilitate your business to face the challenges and realize opportunities, now and in

the future. Our main focus is relationship based banking and understanding corporate

& institutional business environments.

Our experienced Relationship Managers & their team can respond to and anticipate

your needs and give you competitive business advantages. Products and services for

commercial and business customers include: Working Capital Finance, Project

Finance, Term Finance, Trade Finance, Lease Finance, Syndication Loan etc.

Retail Banking

Retail Banking is mass- banking facility for individual customers to avail banking

services directly from our wide branch net work all over the country. We provide one-

stop financial services to all individual customers through our innovative products &

services to cater their need. With a view to provide faster and more convenient

centralized online banking services, most of our branches Bank offers a wide variety

of deposit products, loan product & value added services to suit your banking

requirements. Products and services for individual customer include: Consumer

Finance, Deposit Product, Card, NRB Account, Student File, SMS Banking etc.

SME Banking The growth of Small and Medium enterprises (SMEs) in terms of size and number has

multiple effects on the national economy, specifically on employment generation,

GDP growth, and poverty alleviation in Bangladesh. At present, Small & Medium



Enterprise sector is playing a vital role in creation of new generation entrepreneurs

and 'Entrepreneurs Culture' in the country. Experience shows that borrowers of small

enterprise sector prefers collateral free loan since normally they cannot offer high

value security to cover the exposure.

To facilitate SME sector of the country, IFIC Bank provides collateral free credit

facilities to the small & medium entrepreneurs across the country whose access to

traditional credit facilities are very limited. We are offering 15 different products for

selected target groups, such as - Easy Commercial Loan, Retailers Loan, Muldhan

Loan, Women Entrepreneur’s Loan (Protyasha), Transport Loan, Working Capital

Loan, Project Loan, letter of Contractor's Loan, Bidder's Loan, Working Capital Loan,

Project Loan, Letter of Guarantee, Letter of Credit Loan against Imported

Merchandize (LIM), Loan against Trust Receipt etc.



CHAPTER 3


CHAPTER THREE

HRM OVERVIEW


HRM OVERVIEW

3.1 Evolution of HRM

The early part of the century saw a concern for improved efficiency through careful

design of work. During the middle part of the century emphasis shifted to the

employee's productivity. Recent decades have focused on increased concern for the

quality of working life, total quality management and worker's participation in

management. These three phases may be termed as welfare, development and

empowerment.

Human Resource Management involves all management decisions and practices that

directly affect of influence the people, or human resources who work for the

organization. Human Resource Management has become one of the crucial parts of

organization because an organization’s employees enable an organization to achieve

its goal human resource is a primary resource without which other resources, physical

and financial, can’t be put into use. So, the management of Human Resources plays a

critical role to an organization’s success.

3.2 Definition of HRM

'A philosophy of people management based on the belief that human resources are

uniquely important in sustained business success. An organization gains competitive

advantage by using its people effectively, drawing on their expertise and ingenuity to

meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and

committed people, managing and rewarding their performance and developing key

competencies.' (1)

Human resources may be defined as the total knowledge, skills, creative abilities,

talents and aptitudes of an organization's workforce, as well as the values, attitudes,

approaches and beliefs of the individuals involved in the affairs of the organization. It

is the sum total or aggregate of inherent abilities, acquired knowledge and skills

represented by the talents and aptitudes of the persons employed in the organization.

(6)



Human Resource Management has come to be recognized as an inherent part of

management, which is concerned with the human resources of an organization. Its

objective is the maintenance of better human relations in the organization by the

development, application and evaluation of policies, procedures and programmers

relating to human resources to optimize their contribution towards the realization of

organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of

people. It is an integral but distinctive part of management, concerned with people at

work and their relationships within the enterprise. HRM helps in attaining maximum

individual development, desirable working relationship between employees and

employers, employees and employees, and effective modeling of human resources as

contrasted with physical resources. It is the recruitment, selection, development,

utilization, compensation and motivation of human resources by the organization.

Human man Resource Management (HRM) is the function within an organization that

focuses on recruitment of, management of, and providing direction for the people who

work in the organization. Human Resource Management can also be performed by

line managers.(6)

Resource Management is a process and organizations together so that the goals of

each are met. It is that part of the management process which is concerned with the

management of human resources is an organization. It tries to secure the best form

people by winning their whole hearted co-operation. In short, it may define as the art

of procuring, developing and maintaining competent work force to achieve the goals

of an organization is an effective and efficient manner.

Human Resource/personnel management may be defined as the art of procuring,

developing and maintaining competent workforce to achieve organizational goals

efficiently.

According to Flippo,” Human Resource/ personal Management is the planning,

organizing, directing and controlling of the procurement, development, compensation,

integration, maintenance and separation of human resources to the end that individual,

organizational and social objectives are accomplished,”



According to E.F.L. Breach,” Personnel Management is the part of management

process which is primarily concerned with the human constituents of an organization.

In the words of Richard Calhoon,” Personnel management involves the task of

handing the human problems of an organization and is devoted to acquiring,

developing, utilizing and maintaining an efficient work-force.”

According to R.G. Gokhle,” Personnel Management is the specialized intelligent

handing of the human factor by a separate department which could devote its full time

for research along the line of improvement is industrial relations.”

In other words, it can be said that personal Management is concerned with people at

work and their relationships with each other. It may be defined as a set of

programmers, functions and activities designed to maximize both personal and

organizational goals.

3.3 Function of HRM

Human Resource Management consists of the following functions each of which includes multiple equally important activities which collectively contribute to the organization’s success:

- Human Resource Planning

Human resource Planning, HRP, is a planning process by which an organization can move from its current manpower position to its desired manpower position. Through manpower planning, an organization strives to have the right number and right kinds of people at the right time. More appropriately, man power planning is defined as a strategy for acquisition, utilization, improvement, and retention of human resources.

- Acquiring Human Resources

Part of human resource planning that refers to staffing activities that include recruiting applicants, screening, selecting the most qualified candidates, and filling some positions through transfer and promotions.

- Training and development

Training and development is an important activity of human resource management. Training can be defined as the systematized tailor made program



to suit the needs of particular organization for developing certain attitudes, action, skills, and abilities in employees irrespective of their functional levels.

- Performance Management

Performance management is an ongoing process that identifies organizational vision and objectives, installs organizational and individual performance standards, and ensures these standards using system and procedures that are well-integrated with organizational culture and practices.

- Compensation Management

Compensation management, the most critical and important division of human

resource management, mainly deals with designing and administering a

compensation system that rewards employees fairly while stimulating them to

provide goods and services that satisfy customers demands and permitting the

organizational to operate profitable and competently. Organizational success

heavily depends on efficiency of compensation system. The first and foremost

part of the compensation management is the designing of base pay structure for

an organizational employee.

3.4 Importance of HRM

Organizational Psychology holds that successful organizations do not owe their

success solely to market realities and sustainable competitive advantages. Actually,

there is a lot more. Successful companies are those that consider their human capital

as their most important asset. Facts and figures are the quantitative elements of

successful management, yet the qualitative.

Human Resources Management (HRM) is the strategic management of the

employees, who individually and collectively contribute to the achievement of the

strategic objectives of the organization. Assuming that the employees of an

organization are individuals with own mental maps and perceptions, own goals and

own personalities and as such they cannot be perceived as a whole, HRM holds that

the organization should be able to employ both individual and group psychology in

order to commit employees to the achievement of organizational goals.



Aiming to enable the organization to achieve its strategic goals by attracting, retaining

and developing employees, HRM functions as the link between the organization and

the employees. A company should first become aware of the needs of its employees,

and at a later stage, understand and evaluate these needs in order to make its

employees perceive their job as a part of their personal life, and not as a routine

obligation. To that end, HRM is very crucial for the whole function of an organization

because it assists the organization to create loyal employees, who are ready to offer

their best.

The main goals / responsibilities of HRM are:

o To retain low employee turnover rate by inspiring people to work for the

company

o To attract new employees

o To contribute to employee development

To achieve these goals, Human Resources Management trains and motivates the

employees by communicating ethical policies and socially responsible behavior to

them. In doing so, it plays a significant role in clarifying the organization's problems

and providing solutions, while making employees working more efficiently.

On the other hand, challenges do not cease for the HRM. Modern organizations can

survive in the dynamic, competitive environment of today only if they capitalize on

the full potential of each employee. Unfortunately, many companies have not

understood the importance of the human capital in successful operations. The

recruitment and selection of the best employees is a very difficult obligation. Even

companies that are voted in the top-ten places to work at, often endure long periods of

hard work to realize that human element is all an organization should care about.

New challenges arise even now for the organization, and it is certain that new

challenges will never cease to emerge. Therefore, the use of proper Human Resources

techniques is a really powerful way for organizations to overcome these challenges,

and to improve not only their quantitative goals but also their organizational culture,

and their qualitative, cognitive aspects.



3.5 Challenges of HRM

The role of the Human Resource Manager is evolving with the change in competitive

market environment and the realization that Human Resource Management must play

a more strategic role in the success of an organization. Organizations that do not put

their emphasis on attracting and retaining talents may find themselves in dire

consequences, as their competitors may be outplaying them in the strategic

employment of their human resources.

The HR Managers of today have to understand the situations of competitive business

environment and therefore they should update their knowledge and skills by looking

at the organization's need and objectives.

The HRM challenges are:

1. Managing the vision:

Vision of the organization provides the direction to business strategy and helps

managers to evaluate management practices and make decisions. So vision

management becomes the integral part of Man management in future.

2. Internal environment:

Creating an environment which is responsive to external changes, providing

satisfaction to the employees and sustaining through culture and systems is a

challenging task.

3. Changing Industrial Relations:

Both the workers and managers have to be managed by the same HRM Philosophy

and this is a daunting task for the managers.

4. Building organizational capability:

Even in the adverse circumstances the employees have to be made to live in

psychological state of readiness to continually change.



5. Job Design & Organizational structure:

Instead of depending on foreign concepts we need to focus on understanding the job,

technology and the people involved in carrying out the tasks.

6. Managing the large work force:

Management of large workforce poses the biggest problem as the workers are

conscious of their rights.

7. Psycho-Social environment:

Nowadays employee’s participation required not only in performing job but also in

democratizing and humanizing the institution.

8. Employee Satisfaction:

Managers should be aware of techniques to motivate their employees so that their

higher level needs can be satisfied.

9. Modern technology:

There will be unemployment due to modern technology and this could be corrected by

assessing manpower needs and finding alternate employment.

10. Computerized Information System:

This is revolutionary in managerial decision making and is having impact on

coordination in the organization.

11. Legal environment:

To meet the changes in legal environment, adjustments have to be made to the

maximum utilization of human resources.

12. Managing Human Relations:

As the workforce comprises of both educated and uneducated, managing the relations

will be of great challenge.

In spite of all the problems HR Managers are able to overcome all these problems



with the support of management and employees. In the current business world

managing employees are becoming complex task and this can be handled effectively

only by our great HR Leaders.

3.6 Theory of HRM

The human relations and human factors approaches were absorbed into a broad

behavioral science movement in the 1950's and 1960's. This period produced some

influential theories on the motivation of human performance. For example, Maslow's

hierarchy of needs provided an individual focus on the reasons why people work. He

argued that people satisfied an ascending series of needs from survival, through

security to eventual 'self-actualization'.

In the same period, concepts of job design such as job enrichment and job

enlargement were investigated. It was felt that people would give more to an

organization if they gained satisfaction from their jobs. Jobs should be designed to be

interesting and challenging to gain the commitment of workers - a central theme of

HRM.

Classic theories were produced in the 1950s and 1960s within the human relations

framework. By the 1970s most managers participating in formal management training

were aware of: Theory X and Theory Y (McGregor, 1960); of Maslow and Herzberg's

motivation theories; and knew where they should be in terms of the managerial grid

(Blake and Mouton, 1964). These theorists advocated participative, 'soft' approaches

to management. However, only a minority of managers in the USA received such

training, with even fewer in other countries. Most operational managers - concerned

with production, engineering, or distribution - had worked their way up from low-

level jobs: they were probably closer in spirit to F.W. Taylor than the theorists of the

1950s and 1960s. This contrasted with personnel departments with a higher

proportion of people who had received academic training; additionally, 'personnel'

was an area where women were prevalent - as opposed to production which was male

dominated. Were women naturally more open to human relations concepts than men.




CHAPTER FOUR

EMPLOYMENT OF PERSONNEL


CHAPTER 4EMPLOYMENT OF PERSONAL

4.1 Human Resources Planning :

4.1.1 MEANING AND DEFINITION (HRP)

In simple words, HRP is understood as the process of forecasting an

organization’s future demand for, a supply of, the right type of people in the right

number. It is only after this that the HRM department can initiate the recruitment and

selection process. HRP is a sub-system in the total organizational planning.

Organizational planning includes managerial activities that set the company’s

objective for the future and determine the appropriate means for achieving those

objectives. HRP facilitates the realization of the company’s objective by providing the

right type and the right number of personnel. HRP, then, is like materials planning

that estimates the type and quality of the materials and supplies needed to facilitate

the manufacturing activities of the organization. HRP is variously called manpower

planning, personnel planning or employment planning.

A few definitions of HRP are worth quoting here:

Velter Eric. W. has said that “Human Resource Planning or manpower planning is

the process by which management determines how an organization should move from

its current manpower position to its desired manpower position. Through planning,

management strives to have the right number and the right kind of people at the right

place, at the right time, to do things which result in, both, the organization and the

individual receiving the maximum long-range benefit.” (10)

Coleman has defined human resource planning or manpower planning as “the process

of determining manpower requirements and the means for meeting those requirements

in order to carry out the integrated plan of the organization.”(10)

Specially, human Resource planning is the process by which an organization ensures

that it has the right number and kind of people, at the right place, at the right time,



capable of effectively and efficiency completing those tasks that will help the

organization achieves its overall objective.

Human Resource Planning is the process of systematically forecasting the future

demand and supply for employees and the deployment of their skills within the

strategic objectives of the organization. This lesson outline the way in which early

approaches to manpower planning were a response to the importance of business

strategy and planning in order to ensure the availability at the necessary supply of

people, in terms of both number and quality.

According to Geisler, ‘‘Human resources planning is the process- including

forecasting, developing and controlling by which a firm ensures that it has-

o The right number of people,

o The right kind of people,

o At the right places,

o At the right time, doing work for which they are economically most

useful.’’

According to E.W. Vetter, ‘‘a process by which an organization should move from

its current manpower position to desired manpower position. Through planning the

management strives to have the right number, doing things which results both

organization and individual receiving maximum long run benefits.’’(10)

In words, Human Resource planning can be defined as a process by which an

organization ensures that it has the right number and kinds of people, at the right

place, at the right time, capable of effectively and efficiently completing those tasks

that will help the organization achieve its overall objectives.

4.1.2 MEANING AND DEFINITION (Job Analysis)

Job analysis involves a systematic investigation of jobs using a variety of methods, to

determine essential duties, tasks and responsibilities.



Comparing the skills possessed by employees with the results of job analysis can

greatly assist in workforce planning strategies and restructuring or redesigning jobs to

reflect the requirements of the local area and/or University-wide changes.

In simple terms, job analysis may be understood as a process of collecting information

about a job. The process of job analysis results in two sets of data: (1) job description

and (2) job specification (see Fig. for difference between the two). These data are

recorded separately for references.

Fig. Job Description and Job Specification in Job Analysis (6)

A few definitions on job analysis are quoted below.

1. Job analysis is the process of studying and collecting information relating

to the operations and responsibilities of a specific job. The immediate

products of this analysis are job descriptions and job specifications.


Job AnalysisA process of obtaining all pertinent

Job Facts

Job DescriptionA statement containing itemsSuch asjob titlelocationJob summaryDeitiesMachines, tools, and equipmentMaterials and forms usedSupervision given or receivedWorking conditionsHazards

Job specificationA statement of human qualifications necessaryto do the job. Usually contains such items asEducationExperienceTrainingJudgmentInitiativePhysical effortPhysical skillsResponsibilitiesCommunication skillsEmotional characteristicsUnusual sensory demands such as sight, smell, hearing


2. Job analysis is a systematic exploration of the activities within a job. It is a

basic technical procedure, one that is used to define the duties,

responsibilities and accountabilities of a job.

4.1.3 METHODS OF JOB ANALYSIS

The methods that managers can use to determine job elements and the concomitant

knowledge, skills, and abilities necessary for successful performance include the

following:

Observation:

A trained observer observes a worker, recording what the worker does, how

the work is done, and how long it takes. There are two types of observation:

(1) Continuous observation involves observing a job over a given period of

time. (2)Sampling involves observing several incumbents over random,

relatively short periods of time. Observation is a simple and frequently used

method of job analysis.

Interview:

A trained job analyst interviews a job incumbent, usually utilizing a standardized

format. Sometimes more than one worker is interviewed, and the results are

aggregated. Another variation is the group interview, where several incumbents are

interviewed at the same time.

Critical Incident:

Behaviorally based critical incidents are used to describe work, and a job analyst

determines the degree of each behavior that is present or absent in the job.

Diary:

The job incumbent records activities and tasks in a log as they are performed. This

method requires job incumbents to record their daily activities. It provides much

information but is seldom applicable to job activities. The diary method is the most



intrusive of the job analysis methods, requiring much work on the part of the

incumbent and, accordingly, requiring much time. To capture the entire range of work

activities, this method may have to continue for long periods of time-all adding to its

cost.

Checklist:

A worker or supervisor check items on a standardized task inventory that apply to the

job. Checklists may be custom-made or purchased from an outside vendor.

Questionnaire:

There are two types of questionnaires: The structured questionnaire uses a

standardized list of work activities, called a task inventory that job incumbents or

supervisors may identify as related to the job. In addition, the respondent may also

identify additional information such as how much time is spent on the task, the

amount of supervision required, and/or the expertise required. The open-ended

questionnaire asks the job incumbent to describe the work in his or her own words.

Technical Conference:

Several experts on the job collaborate to provide information about the work

performed. A job analyst facilitates the process and prepares the job description based

on the consensus of the technical experts.

What is the job analysis procedure of IFIC Bank ltd?

Ans: In this IFIC basically follow the Dairy method by keeping all the information

and recording everything an employee done during his/her working period in a

personal information file.

How the job analysis was made?

Ans: Here in IFIC Bank Ltd the job analysis was made at branch level. The

manager, in-charge or the designated person for this supervise and keep the records

in file.



What are the key factors?

Ans: The key factors of job analysis are:

Regularity

Time maintenance

Performance

Leave records

Achievements

Target fulfillment record, etc.

4.1.4 Demand and Supply Analysis/ Gap Analysis

Supply analysis focuses on identifying organizational competencies, analyzing staff

demographics, and identifying employment trends. Competency analysis provides

baseline data on the existing organization and present staff. Trend analysis provides

both descriptive and forecasting models describing how turnover will affect the

workforce in the absence of management action.

Demand analysis deals with measures of future activities and workloads, and

describing the competency set needed by the workforce of the future. Demand

analysis must take into account not only workforce changes driven by changing work

but also workforce changes driven by changing workload and changing work

processes.

Gap analysis is the process of comparing information from the supply analysis and

demand analysis to identify the differences - ‘‘the gaps’’ - between the current

organizational competencies and the competency set needed in the future workforce.

The comparison requires the competency sets developed in the supply analysis and

demand analysis phases to be comparable not independently developed. Gap analysis

identifies situations in which the number of personnel or competencies in the current

workforce will not meet future needs and situations in which current workforce

personnel or competencies exceed the needs of the future.

4.1.5 Purposes of Job Analysis



As we know, job analysis is useful for overall management of all personnel activities.

While this is a generalized statement, it is important to specify the uses of job

analysis.

Job-related data obtained from a job-analysis programmer are useful in HRP,

employee hiring, training, job evaluation, compensation, performance appraisal,

computerized personnel information system, and safety and health.

Fig. Uses of Job Analysis

Human Resource Planning

HRP determines as to how many and what type of personnel will be needed in the

near future. The number and the type of personnel are determined by the jobs which

need to be staffed. Job-related information is, therefore, necessary for HRP.


HRP

Recruitment and Selection

Training and Development

Job Evaluation

Remuneration

Performance Appraisal

Personal information

Safety and Health

JobDescription

Job Specification

JobAnalysis


Recruitment and Selection

Recruitment needs to be preceded by job analysis. Job analysis helps the HR manager

to locate places to obtain employees for openings anticipated in the future. An

understanding of the type of the skills needed and a type of job that may open in the

future enables managers to have a better continuity and planning in staffing their

organization.

Similarly, selecting a qualified person to fill a job requires knowing clearly the work

to be done and the qualifications needed for someone to perform the work

satisfactorily. Without a clear and precise understanding of what a job entails, the HR

manager cannot effectively select someone to do the job.

Training and DevelopmentJob analysis is useful for an HRD manager inasmuch as it helps him/her know what a

given job demands from the incumbent in items of knowledge and skills. Training and

development programmers can be designed depending on the job requirements.

Selection of trainees is also facilitated by job analysis.

Job EvaluationJob evaluation involves determination of relative worth of each job for the purpose of

establishing wage and salary differentials. Relative worth is determined mainly on the

basic of job description and job specification.

RemunerationJob evaluation helps determine wage and salary grades for all jobs. Employees need

to be compensated depending on the grades of jobs which they occupy. Remuneration

also involves fringe benefits, bonus and other benefits. Clearly, remuneration must be

based on the relative worth of each job

Performance AppraisalPerformance appraisal involves assessment of the actual performance of an employee

against what is expected of him/her. Such assessment is the basis for awarding

promotions, effecting transfer, or assessing training needs. Job analysis facilitates

performance appraisal inasmuch as it helps fix standards for performance in relation

to which actual performance of an employee is compared and assessed,



Personnel InformationOrganizations generally maintain computerized personnel information systems. Such

information system is useful as it helps:

1. Improve administrative efficiency by speeding up the provision of data, by

reducing the resources required to carry out routine administration, and by

freeing the resources for higher-value activities which are fundamental to the

success of the management.

2. Provide decision support-information which gives a factual basis for decisions

concerning the planning, acquisition, development, utilization and

remuneration of human resources.

Safety and HealthThe process of conducting a detailed job analysis provides an excellent opportunity to

uncover and identify hazardous conditions and unhealthy environmental factors (such

as heat, noise, fumes, and dust), so that corrective measures can be taken to minimize

and avoid the possibility of human injury.

4.2 RECRUITMENT

4.2.1 MEANING AND DEFINITION (Recruitment)

Recruitment is the process of finding the suitable candidates for the required position

in an organization. After the manpower planning, the Talent resources required for the

organization is charted out. On that basis, the Recruiter of the organization finds out

the suitable candidates who can fit into that job role. After the recruitment process, the

selection process starts by having a preliminary round of interview and the whole

interview process takes place. Then come the post - selection activities liking

releasing the offer, induction, training etc.

4.2.2 Sources of RecruitmentEvery organization has the option of choosing the candidates for its recruitment

processes from two kinds of sources: internal and external sources. The sources

within the organization itself (like transfer of employees from one department to



other, promotions) to fill a position are known as the internal sources of recruitment.

Recruitment candidates from all the other sources (like outsourcing agencies etc.) are

known as the external sources of recruitment.

Figure: Source of Recruitment

Internal Recruitment


Rec

ruit

men

t

Professional or Trade Associations

Advertisements

Employment Exchanges

Campus Recruitment

Walk-ins and write-ins

Consultants

Contractors

Displaced Persons

Radio and Television

Acquisitions and Mergers

Competitors

E-Recruiting

Present Employees

Employee Referrals

Former Employees

Previous Applicants

Inte

rnal

Sou

rces

Ext

ern

al S

ourc

es


Internal recruitment seeks applicants for positions from those who are currently

employed. Internal sources include present employees, employee referrals, former

employees, and former applicants.

Present EmployeesPromotions and transfers from among the present employees can be a good source of

recruitment. Promotion to higher positions has several advantages. They are-

o It is good public relations;

o It build morale;

o It encourages competent individuals who are ambitious;

o It improves the probability of a good selection, since information on the

individual’s performance is readily available;

o It is cheaper than going outside to recruit;

o Those chosen internally are familiar with the organization; and

o When carefully planned, promoting from within can also act as a training

device for developing middle-level and top-level managers.

However, promotion can be dysfunctional to the organization as the advantage of

hiring outsiders who may be better qualified and skill is denied. Promotion also

results in inbreeding which is not good for the organization.

Employee ReferralsThis can be a good source of internal recruitment. Employees can develop good

prospects for their families and friends by acquainting them with the advantages of a

job with the company, furnishing cards of introduction, and even encouraging them to

apply.

Some organizations even offer “finder’s fees” in the form of monetary incentives for a

successful referral. Microsoft, for example, is presently offering referral incentives to

its employees for internet experts. Infosys in Bangalore has the practice of flashing

the news about vacancies on its website and inviting referrals from employees.

Employees are paid Rs 10,000 to Rs 15,000 each as “charges” for every successful

hire. Similar practice prevails in Wipro, Satyam and other firms.

Former Employees



Former employees are also an internal source of applicants. Some retired employees

may be willing to come back to work on a part-time basic or may recommend

someone who should be interested in working for the company. Sometimes, people

who have left the company for some reason or the other are willing to come back and

work. Individuals, who left for other jobs, might be willing to come back for higher

emoluments. An advantage with this source is that the performance of these people is

already known.

Previous ApplicantsAlthough not truly an internal source, those who have previously applied for jobs can

be contacted by mail, a quick and inexpensive way to fill an unexpected is opening.

Although ‘walk-ins’ are likely to be more suitable for filling unskilled and semi-

skilled jobs, some professional openings can be filled by applicants to previous job.

Have to be solicited from outside the organization. External sources are external to a

concern. But it involves lot of time and money .The external sources of recruitment

include – Professional or Trade Associations, Advertisement, Campus Recruitment,

Walk-ins, write-ins and Talk-ins, Consultants, Contractors, Displaced persons, Radio

and Television, Acquisitions and Mergers, Competitors

Professional or Trade AssociationsProfessional organizations or associations maintain complete bio-data of their

members and provide the same to various organizations on requisition. They also act

as an exchange between their members and recruiting firms in exchanging

information, clarifying doubts etc. Organizations find this source more useful to

recruit the experienced and professional employees like executives, managers,

engineers.

Advertisement It is an external source which has got an important place in recruitment procedure.

The biggest advantage of advertisement is that it covers a wide area of market and

scattered applicants can get information from advertisements. Medium used is

Newspapers and Television.



Campus Recruitment Different types of organizations like industries , business firms, service organizations,

social or religious organizations can get inexperienced candidates of different types

from various educational institutions like Colleges and Universities imparting

education in Science, Commerce, Arts, Engineering and Technology, Agriculture,

Medicine, Management Studies etc, Trained candidates are recruited with different

specialization in subjects, like engineering, medicine from the training institutes of

State Government or National Industrial Training Institutes for Engineers or

vocational training centers.

ConsultantsPublic employment agencies or consultants like ABC. Line managers are relieved

from recruitment functions so that they can concentrate on their operational activities

and recruitment functions is entrusted to a private agency or consultants. But due to

limitations of high cost, ineffectiveness in performance, confidential nature of this

function managements sometimes do not depend on this source.

ContractorsContractors are used to recruit casual workers. The names of the workers are not

entered in the company records and, to this extent, difficulties experienced in

maintaining permanent workers are avoided.

Displaced personsSitting and implementation of a project in an area would result in displacement of

several hundred inhabitants. Rehabilitating the displaced people is a social

responsibility of business. Such people are a source of recruitment, not only for the

project which caused the displacement, but also for other companies located

elsewhere.

Radio and TelevisionRadio and television are used but sparingly, and that too, by government departments

only. Companies in the private sector are hesitant to use the media because of high

costs and also because they fear that such advertising will make the companies look

desperate and damage their conservative image. Prepried By Farzana Asad36


Radio and television can be used to reach certain types of job applicants such as

skilled workers. Besides, there is nothing inherently desperate about using radio or

television.

Acquisitions and MergersAnother method of staffing organizations is a result of the merger or acquisition

process, when organizations combine into one, they have to handle a large pool of

employees, some of whom may no longer be necessary in the new organization.

Consequently, the new organization has, in effect, a pool of qualified job applicants.

As a result of the merger or acquisition, however, new jobs maybe created as well.

Both new and old jobs may be readily staffed by drawing the best-qualified applicants

from this employee pool.

CompetitorsRival firms can be a source of recruitment. Popularly called poaching or ‘raiding’, this

method involves identifying the right people in rival companies, offering them better

terms and luring them away.

What type of source IFIC Bank follows in term of recruitment?Ans: IFIC Bank follow both internal and external sources.

What are the Internal sources?Ans: The internal sources are:

Present employees Employee referral Formar employees Previous applicant

What are the external sources?Ans: The external sources are:

Advertisements Employment Exchanges Walk-ins and write-ins Acquisitions and Mergers Competitors E-Recruiting

How these sourses are determinds:And: Based on the designation or the responsibility of the duty these sources are determined. E.g. in term of entry level position referral could be followed, mid level requirements are made on advertisements or hiring some competitors employees and in term of higher or top level management position again competitors best personels or acquisition and merger is terms IFIC bank followes.



4.3 Selection:

4.3.1 Meaning and Definition (Selection)

Selection is the process of picking individuals (out of the pool of job applicants) with

requisite qualifications and competence to fill jobs in the organization. A formal

definition of selection is:

It is the process of differentiating between applications in order to identify (and hire)

those with a greater likelihood of success in a job.

Once a pool of candidates has been developed from recruiting effort, the next step in

the employment process is determining qualified candidates. Here we will discuss the

various stages in a selection procedure.

o Selection is the process by which all candidates are divided into two groups,

viz. those selected and those rejected.

o It is the process of differentiating between applicants in order to identify (and

hire) those with a greater likelihood of success in a job.

o It is the process of screening job applicants to ensure that the most appropriate

candidates are hired.

From the above definition, it is clear that selection is the process of choosing from a

pool of candidates, the most suitable person for the current position or for future

position.

Selection


Reject error Correct decision

Uns

ucce

ssfu

lS

ucce

ssfu

l

Lat

er J

ob P

erfo

rman

ce


Reject Accept

Selection decision outcomes (7)

As shown in figure, a decision is correct when the applicant was predicted to be

successful on the job or when the applicant was predicted to be unsuccessful (was

rejected) and, if hired, would not have been able to do the job. In the former case, we

have successfully accepted and in the latter case, we have successfully rejected.

Problems occur, however, when we rejected candidates who, if hired, would have

performed successfully on the job (called reject errors) or accept those who

subsequently perform poorly (accept errors). These problems are unfortunately, far

from insignificant. Earlier, reject errors only meant that costs of selection were

increased. But nowadays, the selection technique that results in reject errors can open

the organization towards charges of discrimination.

STRENGTHS IN TERM OF IFIC BANK LTD: Unbiased job analysis Medical insurance for employees Pension scheme Test at each level of career for promotion Good compensation and career plan.

WEAKNESSES IN TERM OF IFIC BANK LTD: Demand and supply gap Work load Selection or distribution of employees are biased due to referral

of higher management


Correct decision Accept error



CHAPTER FIVE



CHAPTER 5


5.1 IntroductionEvery organization needs to have well-trained and experienced people to perform the

activities that have to be done. If current or potential job occupants can meet this

requirement, training is not important. When this is not the case, it is necessary to

raise the skill levels and increase the versatility and adaptability of employees.

5.2 Training

5.2.1 Meaning of training

Training is a learning experience in that it seeks a relatively permanent change in an

individual that will improve his or her ability to perform on the job. We typically say

training can involve the changing of skills, knowledge, attitudes, or social behavior. It

may mean changing what employees know, how they work, their attitudes towards

their work, or their interactions with their co-workers or their supervisor.

For another purpose, Training will be presented as it applies primarily to operative

employees in the organization

5.2.2 Method of training

The most popular training methods used by organization can be classified as either

on-the-job of off-the-job training.

5.2.2.1 On-the job training

The most widely methods of training take place on the job. This can be attributed to

the simplicity of such methods and the impression that they are less costly to operate.



On-the job training places the employees in an actual work situation and makes them

appear to be immediately productive. It is learning by doing. For jobs that either are

on the job training makes sense.

One of the drawbacks to on the job training can be low productivity while the

employees develop their skills. Another drawback can be the errors made by the

trainees while they learn. However, when and personnel are limited or costly, and

where it is desirable for the workers to learn the job under normal working conditions,

the benefits of on the job training frequently offset its drawbacks.

Apprenticeship Programs. People seeking to enter skilled trades to become, for

example. Plumbers, electricians, or ironworkers are often required to undergo

apprenticeship training before they are accepted to journeyman status typically, this

apprenticeship period is from two to five years .For instance, a cosmetician’s

apprenticeship is two years, a bricklayer’s is three years, machinists and printers

spend four years, and a patternmaker requires five years. During the apprenticeship

period, the trainee is paid less than a fully qualified worker.

Apprenticeship programs put the trainee under the guidance of a master worker. The

argument for apprenticeship programs is that the required job knowledge and skills

are so complex as to rule out anything less than a long time period where the trainee

understudies a skilled master journeyman.

Job Instruction Training. During World War II, a systematic approach to on-the –

job training was developed to prepare supervisors to train operatives. This approach,

called job instruction training (JIT) was part of the Training within Industry programs.

JIT proved highly effective and became extremely popular. JIT consists of four basic

steps: (1) preparing the trainees by telling them about the job and overcoming their

uncertainties; (2) presenting the instruction, giving essential information in a clear

manner; (3) having the trainees try out the job to demonstrate their understanding;

understanding; and (4) placing the workers into the job, on their own, with a

designated resource person to call upon should they need assistance. The sequence of

these activities is shown in finger 10-3.

A revival of JIT achieved impressive result. When twenty supervisors who had

received training for twenty –five hours over ten weeks in turn retrained their



subordinates, all but three supervisors were able to show tangible result of job training

in their areas. Productivity was significantly improved, and rejects where cut by

approximately yow-thirds.

5.2.2.2 Off-the Job Training

Off-the –job training covers a number of techniques –classroom lectures, films,

demonstrations; case, studies and other simulation exercises, and programmed

instruction. The facilities needed for each of these techniques very from a small

makeshift classroom to an elaborate development center with large lecture halls,

supplemented by small conference rooms with sophisticated audiovisual equipment,

tow-way mirrors, and all the frills.

Off – the job training is given outside the actual work place.

Lectures/Conferences: - This approach is well adapted to convey specific

information, rules, procedures or methods. This method is useful, where the

information is to be shared among a large number of trainees. The cost per trainee is

low in this method.

Films: - can provide information & explicitly demonstrate skills that are not easily

presented by other techniques. Motion pictures are often used in conjunction with

Conference, discussions to clarify & amplify those points that the film emphasized.

Simulation Exercise: - Any training activity that explicitly places the trainee in an

artificial environment that closely mirrors actual working conditions can be

considered a Simulation. Simulation activities include case experiences, experiential

exercises, vestibule training, management games & role-play.

Cases: - present an in depth description of a particular problem an employee might

encounter on the job. The employee attempts to find and analyze the problem,

evaluate alternative courses of action & decide what course of action would be most

satisfactory.



Experiential Exercises: - are usually short, structured learning experiences where

individuals learn by doing. For instance, rather than talking about inter-personal

conflicts & how to deal with them, an experiential exercise could be used to create a

conflict situation where employees have to experience a conflict personally & work

out its solutions.

Vestibule Training: - Employees learn their jobs on the equipment they will be

using, but the training is conducted away from the actual work floor. While

expensive, Vestibule training allows employees to get a full feel for doing task

without real world pressures. Additionally, it minimizes the problem of transferring

learning to the job.

Role Play: - It’s just like acting out a given role as in a stage play. In this method of

training, the trainees are required to enact defined roles on the basis of oral or written

description of a particular situation.

Management Games: - The game is devised on a model of a business situation. The

trainees are divided into groups who represent the management of competing

companies. They make decisions just like these are made in real-life situations.

Decisions made by the groups are evaluated & the likely implications of the decisions

are fed back to the groups. The game goes on in several rounds to take the time

dimension into account.

In-Basket Exercise: - Also known as In-tray method of training. The trainees is

presented with a pack of papers & files in a tray containing administrative problems &

is asked to take decisions on these problems & are asked to take decisions on these

within a stipulated time. The decisions taken by the trainees are compared with one

another. The trainees are provided feedback on their performance.

How the training program works?Ans: IFIC Bank follows both on the job and off the job training program for its employees. Initially new employees are trained at branch level while working on their desks also IFIC’s own training academy arrange programs based on segmentation and call employees by rotation and duration.

What type training has been given at the academy?



Ans: the training programs are planed based on same level of job description. E.g. A fresher orientation program was arranged in this term those who joined recent at IFIC Bank will be called and the training materials could be a introduction about the Bank, its products, work plan, techniques etc.

Who provides these trainings?Ans: Based on the level of training some high officials, IT specialist or some one else specialized in specific field can be the trainer.

5.3 Reasons for Training

Typical Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an employee or

group of employees, e.g:

When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance

improvement effort

As part of an overall professional development program

As part of succession planning to help an employee be eligible for a planned

change in role in the organization

To "pilot", or test, the operation of a new performance management system

To train about a specific topic (see below)

Typical Topics of Employee Training

1. Communications: The increasing diversity of today's workforce brings a

wide variety of languages and customs.

2. Computer skills: Computer skills are becoming a necessity for conducting

administrative and office tasks.

3. Customer service: Increased competition in today's global marketplace

makes it critical that employees understand and meet the needs of customers.

4. Diversity: Diversity training usually includes explanation about how people

have different perspectives and views, and includes techniques to value

diversity



5. Ethics: Today's society has increasing expectations about corporate social

responsibility. Also, today's diverse workforce brings a wide variety of values

and morals to the workplace.

6. Human relations: The increased stresses of today's workplace can include

misunderstandings and conflict. Training can people to get along in the

workplace.

7. Quality initiatives: Initiatives such as Total Quality Management, Quality

Circles, benchmarking, etc., require basic training about quality concepts,

guidelines and standards for quality, etc.

8. Safety: Safety training is critical where working with heavy equipment ,

hazardous chemicals, repetitive activities, etc., but can also be useful with

practical advice for avoiding assaults, etc.

9. Sexual harassment: Sexual harassment training usually includes careful

description of the organization's policies about sexual harassment, especially

about what are inappropriate behaviors.

General Benefits from Employee Training and Development

There are numerous sources of online information about training and development.

Several of these sites (they're listed later on in this library) suggest reasons for

supervisors to conduct training among employees. These reasons include:

Increased job satisfaction and morale among employees

Increased employee motivation

Increased efficiencies in processes, resulting in financial gain

Increased capacity to adopt new technologies and methods

Increased innovation in strategies and products

Reduced employee turnover

Enhanced company image, e.g., conducting ethics training (not a good reason

for ethics training!)

Risk management, e.g., training about sexual harassment, diversity training

5.4 Developing

5.4.1 Meaning of Development



Employee development is more future oriented, and more concerned with

education, than is employee training, or assisting a persons to become a performance.

By education, we mean that Employee development activities attempt to instill sound

reasoning process-to enhance one’s ability to understand and interpret knowledge

rather than imparting a body of serial facts or teaching a specific set of motor skills.

Development therefore focuses more on the employee’s personal growth. Successful

managers have analytical, human, conceptual, and specialized skills. They are able to

think and understand. Training per se cannot overcome a manager’s or potential

inability to understand cause-and-effect relationships, to synthesize from experience,

to visualize relationships, or to think relationships or to think logically.

5.4.2 Methods of Development

-On-the-job Development

The development of a manager’s abilities can take place

on the job. We will review four popular on-the-job techniques

Coaching: when a manager’s takes an active role in guiding another manager’s, we

refer to this activity as coaching. Just as track coaches observe, analyze, and attempt

to improve the performance of their athletes ‘coaches’ on the job can do the same.

The effective coach on the track or in the corporate hierarchy gives guidance through

direction, advice, criticism, and suggestions in attempts to aid the growth of the

employee.

Understudy Assignments: By Understudy Assignments, we mean potential

managers are given the opportunity to relieve an experienced manager’s of his or her

job and act as his or her substitute during the period. This level also described

permanent assistant to position as well as temporary opportunities to assists managers

in completing their jobs.

Job rotation: job rotation can be either horizontal or vertical. Vertical rotation is

nothing more than promoting a worker into a new position. On the other hand

horizontal dimension of job rotation or what may be better understood as lateral

transfer.



Committee Assignments: Assignment to a committee can provide an

opportunity for the employee to share in managerial decision making, to learn by

watching others, and to investigate specific organizational problems.

Off-the-job Development: There are wealth of employee development

techniques that personal can partake in off the job. We will briefly discuss four of the

more popular ones. They are as follow:

Sensitivity training

Sensitivity training in “encounter groups” became quite popular during the 1950s as a

method of changing behavior through group process. Often referred to as laboratory

training. It influences the participants through unstructured group interaction. Member

are brought together in a free and open environment in which participants discuss

themselves and their interactive process, loosely facilitated by a professional

behavioral scientist. This professional then creates the opportunity to express their

ideas, beliefs, and attitudes.

Transactional Analysis:

Transactional Analysis is both an approach for defining and analyzing communication

interaction between people and a theory of personality. The fundamental theory

underlying TA holds that an individual’s personality consists of there ego state-the

parent, the child, and the adult. These labels have nothing to do with age, but rather

with aspects of the ego.

Lecture courses:

Lecture Courses. Formal lecture courses offer an opportunity for managers or

potential managers to acquire knowledge and develop their conceptual and analytical

abilities. In large organizations, these lecture courses may be offered “in-house” by

the organization itself and supported by out side college course work. Small

organization will utilize courses offered in development programs at universities and



collages, and through consulting organizations. Often college and university faculty

are willing to provide specific courses to deal with the unique needs of an

organization.

Simulation Exercises. Simulations were introduced as a training technique. They are

probably even more popular for management development. The more widely used

simulation exercises include case study. Decision games and role plays.

5.6 TRAINING EVALUATION.

Training managers can come up with a surprising number of reasons for not

evaluating training such as:

Nothing to evaluate

No one really cares about it

Evaluation is a threat to my job

1) NOTHING TO EVALEATE

For some companies training is a luxury the is provide as a reward for good

performance, or simply something mandated so everyone must take their turn.

Argument here is that training isn’t expected to accomplish anything, so there is

nothing to evaluate.

2) NO ONE REALLY CARES ABOUT EVALUATING TRAINIG

The most common rationale for not conducting training evaluations is that formal

evaluation procedures are too expensive and time –consuming and no one really

cares anyway.” This explanation usually means that no one specifically asked for,

demanded, or otherwise indicated a need for assessments.

3) EVALUATION IS A THREAT TO JOB

If time and money are spent on training and an evaluation determines that no

learning occurred-or worse, job performance declined-tough question will be

asked. Although most managers are not likely to admit this concern publicly, it is

perhaps the real problem. When we use the team evaluation, we too often think of



a single final outcome at a particular point that represents success or failure –like a

report card. This type of evaluation is called summative or out come evaluation.

EVALUATING THE COSTS OF TRAINIG

The outcomes of training are only half the battle in evaluating its effectiveness.

The other half is determining whether the results were worth the cost. If

grievances do go down, and if the new behavior are exhibited and the skills

learned, then training might be considered the cause of the reduction, although

cause-and –effect relationships are never a sure thing. The examination of all four

levels of evaluation provides evidence of case and effect, and appropriate designs

enhance the level of confidence in cause and effect, but not to an absolute

certainty. Many managers today still might ask, “so what? In other words, did the

benefits related to the reduction in grievance outweigh?

Question can be answered two ways:

-Cost/benefit evaluation:

A cost/benefit evaluation of training compares the momentary cost of training to

the momentary benefits. It is difficult to place a value on theses benefits, which

include attitudes and working relationships. So the labor peace brought about by

the reduction in grievances is difficult to assess but rates high in value in

comparison to the cost of training.

-Cost-Effectiveness Evaluation:

A cost – effectiveness evaluation compares the monetary costs of training to the

financial benefits accrued from training. Two approaches can be used to assess

cost effectiveness:

1. Calculation of the actual cost saving based on the change in result.

2. Utility analysis, which examines the value of overall improvement in

performance of the trained employees.

How the evaluation is made at IFIC Bank Ltd?



Ans: During the training program the academy arranges some follow up tests on a

certain duration. A single training program may have 3-7 tests based on the level. The

best part at IFIC training academy they took a test before beginning the training the

actual program to analyse the knowledge of the trainees on those specific subjects

which they are going to highlight on that training program. Based on the assessment

of that test the academy rearranges, cut and add subjects that will help the trainees to

gain something from the program. Finally based on all those tests the best performers

are awarded which also help the to boost up their career.

STRENGTHS IN TERM OF IFIC BANK LTD: One of the best training academy Well trained trainers Training on a certain duration and training for every employee Evaluation creates a competition among the employees Motivation Reward

WEAKNESS IN TERM OF IFIC BANK LTD: They should focus more on the job training. In term of on the job training the co-workers have to be more

helpful minded rather acting senior. Higher level officials should share the knowledge and

experience with their subordinates at branch level.




CHAPTER SIX

DATA PRESENTATION


CHAPTER 6DATA PRESENTATION

From the answer of questionnaires all date are followed (from appendix):

Total number of employees IFIC Bank

Size of the HR department.

Diagrame-5.2



HR Department personnel by educational qualification of IFIC Bank:

Level of academic qualifications

Top-Middle Level

Entry Level Others Staff Group

Doctorate/Post-Doc.

Post graduate Y

Graduate Y

H.S.C. Y

S.S.C.

Others




CHAPTER SEVEN

DATA ANALYSIS


CHAPTER 7DATA ANALYSIS

The study shows IFIC bank is doing its business with a shortage manpower.

Moreover, in IFIC bank the highest numbers of employees are working in entry level.

Methods are used to forecast human resources demand.

Ratio Analysis

Computerized Forecasting

Trend Analysis

Management Judgments

Statistical Analysis

Human resources policies IFIC Bank Ltd.

Recruitment Selection Induction Compensation and Reward Training and Development Health and Safety Benefits and Services Promotion Sharing information with employees Discharge Equal employment opportunity Performance appraisal Working condition Industrial relations Hours of Work



Leave and Vacation Transfer

Training techniques on Top-Middle Level:

On-the-job training

Classroom lecture

Conference

Audiovisual technique

Computer bases training

Programmed instruction

Job rotation

Training techniques on Entry Level:

On-the-job training

Classroom lecture

Conference




Job rotation

Training techniques on Other Staff Group:

On-the-job training

Classroom lecture

Conference




Job rotation

Research intend:

A research design in the determination and statement of the research approach or

strategy adopted for the particular project.



Gist:

A research design is purely and simply the framework or plans for study the guides,

the collection and analysis of the data. It is blue print that is followed in completing a

study. A central part of the research activity is to develop and effective research

strategy as design. This will detail the most suitable method of investigation, the

sampling plan and type of data. All the data as been collected on the basic of personal

interview and the researcher interprets them his requirement.


CHAPTER EIGHT

FINDINGS


CHAPTER 8FINDINGS

There are several findings which I practically observed at IFIC Bank Ltd as follows:

1. For both in entry level and higher level recruitment job analysis is done to

ensure the viability and accuracy of recruitment and selection. For the higher

level position a more sincere job analysis is done to fix up the KSAs because

some positions are very much strategic for bank’s regular affairs.

2. Most of the cases recruitment is done by in house human resources set up. But

for top most management position sometimes information are seek from

reliable agencies.

3. In the initial stages new hire recruitment was more open, but now this

becomes more targeted. Specially Institute of Bank Management fellows, IBA

DU and BIBM fellows are given priority in the recruitment.

4. For the professional recruitment both the internal and external searching is

used, but it is much targeted, well defined KSAs are asked.

5. For both entry level and senior position employee referral, advertisement and

online sources are used. But it varies position to position. Job fair also

arranged to get desired candidate.

6. For the selection of entry level management at first a MCQ examination is

conducted among the primarily selected candidates, then written test is held

and a viva for probable new hire.

7. Normally no discriminations occurred during the recruitment of new hire, but

in very few cases top level management request for any candidate in the final

selection stage. Stereo type image exist in the recruitment, selection and



promotion but it is in implicit form. Women get priority for certain job like

secretary, other than this women are equally evaluated.

8. Sometimes they do not take care of there principles of recruitment of new employees.

9. In some cases they do not publish their recruitment advertisement in media,

web and in the notice board.

10. Some problems are faced by their organizations during recruiting process,

such as, external presser, internal presser.

11. We saw few practices in different countries that they are following such as

temporary help, overtime, internship, subcontracting, and job rotation.

However, in our country they do not follow some of the techniques.

12. They are not following steps that are used for selecting employees in this

organization- Initial screening, Interview, Background investigation &

reference cheek, Physical/medical examination, Hiring decision, Completion

of application form.

13. In recruitment process they do not involve the related questions regarding their

field rather than unrelated questions.

14. Bank has been successful in developing a professional job environment where

each employee has substantial level of authorities and responsibilities.

15. In case of HRM-, there is no specific/clear direction or prospects for outside

learning.

16. 'International Training’ is provided very often in banking sector. The Training

dept. does not maintain any activities related with International Training

Program. Only HRD Maintain all of the activities of ITP. Thus maximum

Trainee & employee don’t know about it.

17. In generally both methods such as on the job (as traditional) & off the job

Training method are followed and maintained strongly when whatever

necessary




CHAPTER NINE

RECOMMENDATION AND CONCLUSION


CHAPTER 9RECOMMENDATION & CONCLUSION

9.1 RECOMMENDATION

On the basis of theoretical analysis and practical experience I may suggest the

following issues:

1. The advertisement should be as open as possible for fair recruitment.

2. Stereo type image will facilitate to have nepotism and other biasness in

recruitment and selection. It should be avoided.

3. There should be some way to compete woman more openly.

4. There are some gap and dissimilarity in recruitment and selection process of

entry level management. We should introduce some common technique for

those for cooperative alliances.

5. Top most executive sometimes recruited by the governing bank like

Bangladesh Bank, this should be open enough to eradicate political biasness.

6. They must have to chase more corporate strategic plan.

7. Principles of the recruitments of the bank should be creative, responsive,

interaction, trustworthy.

8. Recruitment source can be used by the bank in different ways such as,

Advertisement in the media, web, & in the notice board, Employment

agencies, Head hunters, Professional associations, Educational institutions

recommendation, Employee referrals, Walk-ins, CV’s computer Database.

9. For more responsible and capable personnel they have to avoid and face the

political presser as well as internal presser. For this reason higher authority

should give them the authentic power and should not be bias.

10. The organization should use alternatives to recruiting process such as:

Temporary help, Overtime, Internship, Subcontracting, Job rotation.



11. They have to follow Initial screening, Interview, Background investigation &

reference cheek, Physical/medical examination, Hiring decision, Completion

of application form during recruiting process.

12. They have to take care of both internal and external recruitment rather than

depending of internal recruitments. In this way the can get fresh ideas as well

as energetic personnel.

13. They have to more careful about their questioner in recruitment process that

can make sure about the personnel they are taking for their organization.

14. The inefficient and unskilled workers should be cut off which helps to provide

faultless service.

15. The Training Methods & Policy can be updated by continuing survey on

competitive business organization and by taking current opinion of the Trainee

& Training Instructors.

16. In case of International Training-the policy of the company should be

developed.

17. A detailed job creation and identification should be done in top managerial

level and then it should be communicated to the respective implementer.

18. The jobs should be designed according to the requirements of the organization,

not according to the current status of that particular incumbent.

19. A detailed job designing methodology needs to be done with the involvement

of the supervisor as well as the incumbents.

20. Banking is a service-oriented marketing. Its business profit depends on its

service quality. That’s why the authority always should be aware bout their

service quality.

21. To provide quality service to the customer it is necessary to have a trained

team of an organization or an institution. For this reasons the bank should

recruit fresher, bright persons such as MBA, BBA, and MBM etc.

22. As soon as possible the bank should short more branches in Dhaka city as well

as the other cities of the country.

23. The recruitment process is very lengthy and expensive. The bank should the

cost and select the employee by restructuring in lengthy process.



CONCLUSION

Human resource management (HRM) has long been overlooked in the corporate

sector in the country where a small section, comprising mostly the multi-national

companies was practicing the same. With the growing realization of proper HRM in

the corporate sector, it has grown into an important activity. Now the head of HRM is

an important member of the senior teams of any thriving business.

For all the banks, there is a huge prospect to increase their efficiency level in this

sector but due to lack of emphasize, fund, strategy they still far away from actual

activities. Emphasizing on HRM also would strengthen by the bank’s position in the

market and it can also do important promotion for their activities.

Almost every bank and financial institution is involved in various functions in a day's

job and thus requires a highly effective team and appropriate manpower to run the

show. Corporate goals are translated into viable realities and profits only with human

element that play their due role in achieving the desired results.

Thus even the high automation would require proper man behind the machine to make

things happen. This idea has been realized by top managements in progressive banks.

For many years, HRM banks like other institutions have been handling this sensitive

activity through respective personnel departments. Recruitment was a routine function

and was done in a mechanical way to hire people with specific educational

background irrespective of their real value to the institution.

Success stories of large banking companies have been evident of the fact that HRM is

quite different from management of physical assets. Human brain has its own peculiar

chemistry.



BIBLIOGRAPHY

Beach Dale S. The Management of people at work

Macmillan, Jan 1, 1985

Boxall Peter, Purcell John

Strategy and Human Resource Management

Palgrave Macmillan Third Edition edition

Decenzo D.A. and Robbings S.P

Human resource management Eight Edition, John Wiley and sons, inc. USA.

Huselid Mark A., Becker Brian E., Beatty Richard W.

The Workforce Scorecard: Managing Human Capital To Execute Strategy

Harvard Business Review Press; 1 edition (March 15, 2005)

Jack J. Phillips Investing In Your Company's Human Capital: Strategies To Avoid Spending Too Little--Or Too Much

AMACOM (June 3, 2005)

Kenneth L. Murrell, Mimi Meredith

Empowering Employees McGraw-Hill; 1 edition (May 30, 2000)

Price, Alan Human resource management 4th edition, June 11Robbings S.P. and Decenzo D.A.

Fundamentals of Management Person Education, 2002, Delhi

Robert L. Mathis & John H. Jackson Human Resource Management

South-Western College Pub; 11 edition (December 21, 2004)

Stephen P. Robbins S.P Organizational Behavior 10th Edition, Prentic – Hall, inc. USA.

Susan E. Jackson, Randall S. Schuler Managing Human Resources:

Through Strategic Partnerships

South-Western College Pub; 9 edition (January 31, 2005)


http://www.amazon.com/s/ref=ntt_athr_dp_sr_2?_encoding=UTF8&sort=relevancerank&search-alias=books&ie=UTF8&field-author=John%20H.%20Jackson

http://www.amazon.com/s/ref=ntt_athr_dp_sr_2?_encoding=UTF8&sort=relevancerank&search-alias=books&ie=UTF8&field-author=John%20H.%20Jackson

http://www.amazon.com/Robert-L.-Mathis/e/B001IGQWYS/ref=ntt_athr_dp_pel_1


APPENDIX

Questionnaire

(I solicit your valuable cooperation in filling up this questionnaire. Information collected from your esteemed organization will be used only for classroom discussion).

A. ORGANIZATION OF HUMAN RESOURCES DEPARTMNT

1. a) What is your name and designation?

Name:

Designation:

f) In your opinion, what is the size of this Organization?h) What are those functions?

2. a) Whom does the HR manager report to?

b) As the manager/head of the HR department, what type of

authority do you have in taking decisions relating to personnel

matters?

3. a) What is the total number of employees in this organization?

Types of employees Number of employees

Top-Middle Level

Entry Level



Others Staff Group

b) What is the size of the HR department?

Types of employees Number of employees

Top-Middle Level

Entry Level

Others Staff Group

c) HR Department personnel by educational qualification:

Level of academic qualifications

Top-Middle Level


Doctorate/Post-Doc.

Post graduate

Graduate

H.S.C.

S.S.C.

Others

d) HR Department Personnel by work experiences:

Workexperience

Top-Middle Level


Up to 4 years

4-8 years

8-12 years

12-16 years

16-20 years

20 years and above

e) Training received by HR Department Personnel?

Category of people received

training

Number of people received

training

Top-Middle Level



Entry Level

Others Staff Group

4. a) Please identify in which of the following areas your organization

has human resources policies?

Recruitment Discharge

Selection Equal employment opportunity

Induction Performance Appraisal

Training and Development working condition

Compensation and Reward Industrial relations

Health and Safety Hours of Work

Benefits and Services Leave and Vacation

Promotion Transfer

Sharing information with employees other areas (Please specify)

b) Does this organization maintain written human resource

policies?

Yes No

B. EMPLOYMENT OF PERSONNEL

1. a) Does HR department?

i. Perform job analysis?



Yes No

ii. Prepared job description?

Yes No

iii. Prepared job specification?

Yes No

b) If yes, for which type of employees these are prepared?

All types of personnel

Top-Middle Level


Job Analysis

Job Description

Job

Specification

c) Does the organization have any corporate strategic plan?

Yes No

d) Does the organization prepared Manpower/Human resource

plan?

Yes No

e) If yes, who does it?

f) Is it solely the responsibility of HR department?

Yes No

g) If yes, what is the time frame (in year) of HR planning in this

organization?

1 2 3 4 5 6 7 8 9 10

h) What methods are used to forecast human resources demand?



Ratio Analysis Computerized Forecasting

Trend Analysis Management Judgments

Statistical Analysis Markob Chain

Others

i) Please mention the human resources planning process of this organization.

j) Does the organization have any succession plan for the top

management?

Yes No

2. a) What are the principles of recruitment of the organization?

b) Please mention which recruitment sources are used by your

organization?

Recruitment Sources Top-Middle Level

Entry Level Others Staff

GroupAdvertisement in the media

Advertisement in the web

Advertisement in the notice board

Employment agencies

Head hunters

Professional associations

Educational institutions

recommendation

Unsolicited applicants

Employee referrals

Walk-ins



CV’s computer Database

Any other (please specify)

c) Which of the recruiting sources you prefer most? Why?

d) How is recruiting concluded?

e) What are the problems faced by your organization in recruiting?

f) Does this organization use application blanks for recruiting

employees?

Yes No

g) Does this organization use alternatives to recruiting?

Temporary help Overtime

Internship Subcontracting

Job rotation others

3. a) What are the principles of selection in the organization?

b) Would you please mention which of the following steps are used for selectingemployees in this organization?

Selection Steps Top-Middle Level


GroupInitial screening

Employment tests

Interview

Background investigation &

reference cheek

Physical/medical examination

Hiring decision



Completion of application form


c) Please mention which of the following tests are used by your

organization?

Selection Steps Top-Middle Level


GroupTest of cognitive ability

Test of physical abilities

Simulation tests

Measuring Personality &

Interests

Work sample test

Assessment center

Graphology


d) Please mention which of the following type interviews (s), does the

organization use?

Types of interview Top-Middle Level


GroupStructured/ Directive interview

Unstructured/ Non-directive

interview

Depth interview

Stress interview

Job-related interview

Serialized interview

Panel interview


e) Who makes the final decision in the selection process & how?



f) What are the Problems faced by this organization regarding

selection in Bangladesh?

g) Does the organization appoint any consultant for selecting employees?

Top-Middle Level


Yes

No

h) Does your organization have any formal/informal orientation program

for the new employees?

Top-Middle Level


Yes

No

i) What steps are taken to internalize the new employees in your

organization?


report. ific.nadia.31.12.11

Documents

assessment of ific bank

employees of ific bank

development bank

report broad objectives

sound report

ific bank executive

ific banks hr

hr divisions of selected