Executive Summary

Commercial banks are one of the key contributors in the economy of developing countries. They act as

financial intermediaries by performing the function of mobilizing the funds from one group and lending

the same to another while making a reasonable amount of profit after meeting the cost of fund. People and

government itself are very much dependent on the services provided by the 48 banks in the financial

market. To know how well commercial banks perform actually, a case study on Mirpur Branch of AB

Bank Limited is being taken.

AB Bank a nationalized commercial bank (NCB) of Bangladesh established on 31st December 1981 as

Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982.

AB Bank Limited is committed to provide high quality financial services/products to contribute to the

growth of GDP of the country through stimulating trade and commerce, accelerating the pace of

industrialization, boosting up export, creating employee opportunity for the educated youth, poverty

alleviation, raising standard of living of limited income group and overall sustainable socio-economic

development of the country.

Performances of the Mirpur Branch of AB bank Limited are shown, with analysis showing its Strengths,

Weakness, Opportunity and Threats. Also different problems areas of AB Bank Limited are discussed at

the end. On the basis of these problems I have prescribed number of recommendation. I hope if the bank

pays attention to my recommendation then the bank will overcome from these problems.

Chapter 1

Introduction

1.1 Background of the Report

Banks are the financial institutions that play a vital role of a country’s economy. World becomes

more competitive. In this competitive time, Banks require dynamic executives with modern

banking knowledge and experience. This report is prepared to fulfill the course requirement. So,

I was assigned to AB Bank Limited to take real life exposure of the activities of banking

financial institutions. I have worked in AB Bank Ltd., Mirpur Branch and finally submit this

report.

1.2 Purpose of the report

The main purpose of the study is to know the HR practices of the AB Bank Ltd, through

different aspects of the accessories sector and its effectiveness in this regard. Beside the primary

objective of this report is to achieve practical knowledge about observe what the basic HR

practices.

But the specific objectives of the study are given below:

To gather comprehensive knowledge on HR practices of the AB Bank Ltd.

3 times visits to AB Bank helps to know about the policy of account’s and advances and

loan recovery techniques, recruitment, selection, compensation, and benefit and

evaluation procedure.

Interviewing the concerned people to get information about the organizations present and

future plan regarding this topic.

To trace the origin of the AB Bank Ltd.

Collect the documents related to this topic.

Study of books, journals and articles.

To identify the weakness and problem in successful/effective HRM system.

To understand the need and objective of HRD.

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To have an idea of the existing system of HRD

To explain the meaning and concept of HRM.

To acquire in depth knowledge on about the AB Bank Ltd. HRD.

1.3 Objectives of the report

The prime objective of this practical orientation to take a real life exposure of banking activities

and at the same time clarifies our knowledge with practical situation. Other objectives are –

To fulfill the course requirement of MBA Program.

To relate our banking knowledge with real banking activities.

To gather knowledge about overall banking business.

To gather a real life experience.

To understand some banking activities that may help to understand the future courses of

MBA Program.

1.4 Methodology of the report

The study involves various types of information past and present policies, procedures and tactic

of HRM. There are various tactic have been used in preparing this report.

Tasting Procedure of the Report:

During my thesis period, my testing procedure is biased, because here my size is too little. Here

is my taste is bankers of any HRD. I asking them question and collect data for my research.

Sometimes the bankers were so busy for their daily activities and then I was failed to get my

necessary information. In this situation I have used different procedure for my essential element

to prepare this report and I think that can collect the necessary information.

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Sources of Data:

The data collection method of study consists of both of primary and secondary sources. But

majority of the information was collected from secondary sources.

1. Primary Sources: The primary sources include interview with the Officers, discussion

with the officials of the AB Bank Ltd, expert’s opinions comments and my visit

experiences.

2. Secondary Source: The secondary sources are the annual reports, monthly reports of the

AB Bank Ltd, relevant books, newspapers, journal, published documents office circular

and others published prospectus.

1.5 Limitations of the report

This project did not cover all the specific area where technology uses created business

opportunities.

This report relied heavily on the personal judgment and observation.

Technology use and creation business opportunities relation is an extensive task where

need expert to conduct research. Since the researcher is not an expert in this field, the

project report may not be used as a guide but can be a tiny spotlight for future research.

I can’t present the recent data because the annual report and the financial statement are

published at the month of October every year.

I carried out such a study for the first time, so in experience is one of the main constraints

of the study.

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Chapter 2

Organization Profile

2.1 Background of AB Bank Limited

AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st December

1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982.

AB Bank is known as one of leading bank of the country since its commencement 27 years ago. It

continues to remain updated with the latest products and services, considering consumer and client

perspectives. AB Bank has thus been able to keep their consumer’s and client’s trust while

upholding their reliability, across time.

During the last 27 years, AB Bank Limited has opened 78 Branches in different Business Centers

of the country, one foreign Branch in Mumbai, India and also established a wholly owned

Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To

facilitate cross border trade and payment related services, the Bank has correspondent relationship

with over 220 international banks of repute across 58 countries of the World.

The Bank maintained its sound credit rating in 2008 to that of the previous year. The Credit Rating

Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long term and ST-2

rating in the short Term.

AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its past

identity – an identity that the bank carried as Arab Bangladesh Bank Limited for twenty-five long

years. As a result of this decision, the bank chose to rename itself as AB Bank Limited and the

Bangladesh Bank put its affirmative stamp on November 14, 2007.

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The Bank decided to change its traditional color and logo to bring about a fresh approach in the

financial world; an approach, which likes its new logo, is based on bonding, and trust. The bank

has developed its logo considering the contemporary time. The new logo represents our cultural

“Sheetal pati” as it reflects the bonding with its clientele and fulfilling their every need. Thus the

new spirit of AB is “Bonding”. The Logo of the bank is primarily “red”, as red represents velocity

of speed and purity. Our new logo innovates, bonding of affiliates that generate changes

considering its customer demand. AB Bank launched the new Logo on its 25th Anniversary year.

AB Bank commits to nation to take a lead in the Banking sector through not only its strong

financial position, but also through innovation of products and services. It also ensures creating

higher value for its respected customers and shareholders. The bank has focused to bring services

at the doorstep of its customers, and to bring millions into banking channels those who are outside

the mainstream-banking arena. Innovative products and services were introduced in the field of

Small and Medium Enterprise (SME) credit, Women’s Entrepreneur, Consumer Loans, Debit and

Credit Cards (Local & International), ATMs, Internet and SMS Banking, Remittance Services,

Treasury Products and Services, Structured Finance for Corporate, strengthening and expanding

its Islamic Banking activities, Investment Banking, specialized products and services for NRBs,

Priority Banking, and Customer Care. The Bank has successfully completed its automation project

in mid 2008. It envisages enabling customers to get banking services within the comfort of their

homes and offices.

AB Bank has continuously invests into its biggest asset, the human resource to drive forward with

its mission “to be the best performing bank in the country.” The bank has introduced Dress Code

for its employees. Male employees wear designed ties and females wear Sharee or Salwar Kamiz,

all the dresses are consisted with the unique AB Bank logo.

AB is recognized as the people’s choice, catering to the satisfaction of its cliental. Their

satisfaction is AB’s success.

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2.2 Vision & Mission

Vision

"To be the trendsetter for innovative banking with excellence & perfection"

Mission

"To be the best performing bank in the country"

Long term Goal

“Keeping ahead of other competitors in productivity and profitability”

Short Term Goal

“To attain budgetary targets fixed in each areas of business”

2.3 Corporate Information of AB Bank Limited

Name of the Company: AB Bank Limited

Legal Form: A public limited company incorporated on December 31, 1981 under the

Companies Act, 1913 and listed in the Dhaka Stock Exchange Ltd and Chittagong Stock

Exchange Ltd.

Nature of Business: Private commercial bank

Commencement of Business: 27th February 1982

Number of total Branches: 78

Chairman: Faisal M. Khan

President and Managing Director: Kaiser A. Chowdhury]

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Registered Office

BCIC Bhaban, 30-31, Dilkusha C/A

Dhaka 1000, Bangladesh.\

Tel: +88-02-9560312

Fax: +88-02-9564122, 23

SWIFT: ABBLBDDH

E-mail: info@abbank.com.bd

Web: www.abbank.com.bd

2.4 Retail Banking

Unsecured Loan:

1. Personal Loan

2. Auto Loan

3. Easy Loan (For Executives)

4. Gold Grace – Jewellery Loan

5. House/Office Furnishing/Renovation Loan

6. Staff Loan

7. Education Loan.

Secured Loan:

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1. Personal Loan

2. Personal Overdraft.

Besides this, AB Bank Ltd. also doing large loan and project finance, Loan syndication, Non-

resident Bangladeshi Banking, Islamic Banking and Investment Banking.

2.5 Branch Profile

Mirpur Branch is the Non-Authorized Branch of the AB Bank Ltd. in Dhaka. It was established

in 28th March, 1994. At present 30 officers are working in the Branch. Code of the branch is

4015.

Address:

5/A,5/B Darus Salam Main Road(1st floor),Section-01, Mirpur,Dhaka .

Tel: 9013693, 9006525, 01199-977001

Fax: 9006525

E-mail: mirbmg@abbank.com.bd

Branch Manager: Mr. Chowdhury A.N. M.M. Ali Beg, Senior Assistant Vice President.

Operation Manager: Mr. A.S.M.Khairul Alam, Assistant Vice President.

2.6 Organizational Hierarchy

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Chairman

Chapter 3

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Vice Chairman

Director

Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Senior Officer

Officer

Theory

3.1 Human Resource Management*HRM refers to the policies, procedures, strategies or guidelines involved in carrying out the

“people” or human resource aspects of a management position, including recruiting, screening,

training, rewarding and appraising.

Also HRM is the set of organizational activities directed at attracting, developing and

maintaining an effective work force. HRM is concerned with the people dimension in mgt. it is a

process consisting of the acquisition, development, motivation and maintenance of HR’s.

3.2 Importance of HRM**

Personnel mistakes that a manager don’t want to make while managing. For example, managers

don’t want to:

Hire the wrong person for the job.

Experience high turnover.

Have your people not doing their best.

Waste time with useless interviews.

Have your company taken to court because of discriminatory actions.

Have your company cited under federal occupational safety laws for unsafe practices.

Have some employees think their salaries are unfair and inequitable relative to others in

the organization.

Allow a lack of training to undermine your department’s effectiveness.

Commit any unfair labor practices.

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Carefully studying HRM will help a manger to avoid mistakes like these. And, more important, it

can help ensure that manager get the right results- through people. As a manager, he/she can do

everything else right- lay brilliant plans, draw clear organization charts, set up modern assembly

lines and use sophisticated accounting controls—but still fail, by hiring the wrong people or by

not motivating subordinates. So, for the reason, HRM is important to all manages.

Source: * and ** Garry Dessler Human Resource Management, 2005

Figure: HRM Model*

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Source: * Business Journal Vol-II.

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Acquisition

*Human Resource planning.

*Recruiting

- Internal

-External

*Employee Socializatin.

Development

*Employee Training.

*Management Development.

*Career Development.

Maintenance

*Safety and health

*Employee Labor Relations

External Influences

Motivation

*Job design

*Performance Evaluation

*Rewards.

*Compensation/Benefits.

*Discipline

3.3 Line Managers HRM responsibility*

The direct handling of people has always been an integral part of every line manager’s

responsibility, from president down to the lowest- level supervisor. Line manager’s

responsibility includes:

1. Placing the right person on the right job.

2. Starting new employees in the organization. “Orientation”

3. Training employees for jobs that are new to them.

4. Improving the job performance of each person.

5. Gaining creative cooperation and developing smooth working relationships.

6. Interpreting the company’s policies and procedures.

7. Controlling labor costs.

8. Developing the abilities of each person.

9. Creating and maintaining department morale.

10. Protecting employee’s health and physical condition.

Source: * Decenzo Robbins, Fundamentals of HRM 8th Edition.

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3.4 HR Manager’s responsibility*

As the organization grows, they need the assistance, specialized knowledge and advice of a

separate human resource staff. The HR manager carries out 3 distinct functions:

1. A line Function:

The HR Manager directs the activities of the people in his or her own department

and in related service areas. While they generally can’t wield line authority outside HR,

they are likely to exert implied authority. This is because line managers know HR has top

might’s ear in areas like testing and affirmative action.

2. A coordinative function:

Here the HR manager and department act as the “right arm of the top executive”

to ensure that line managers are implementing the firm’s HR objectives, policies and

procedures.

3. Staff function:

Assisting and advising line managers is the heart of the HR manager’s job. HR

assists in hiring, training, evaluating, rewarding, counseling, promoting and firing

employees. The HR manager also assists in strategy design and execution by helping the

CEO to better understand the personnel aspects of the company’s strategic options.

Apart from these 3 functions, HR job duties also include

Recruiter: Search for qualified job applicants.

Equal employment opportunity coordinators—EEO—Investigate and resolve EEO

grievances, examine organizational practices for potential violations and compile and

submit EEO reports.

Job analysts: Collect and examine information about jobs to prepare job descriptions.

Compensation manager: Develop compensation plans and handle the employee benefit program.

Training Specialists: Plan, organize and direct training activities.

Labor relations specialists: Advise management on all aspects of union- management

relations

Source: * Garry Dessler Human Resource Management, 2005.

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3.5 The Changing Environment of HRM*

Today the globalization of the world economy and several other trends are again triggering

changes in how companies organize, manage and use their personnel/ HR departments.

Workforce Diversity:

Generally diversity means the cultural differences of the organization. Workers need to be

shifted from one area to another. The workforce is becoming more diverse as women, minority-

group members and older workers enter the workforce. Diversity is the outcome of globalization.

Workforce of any organization comprises people from different countries. Within this diversity

of national origins, there is even wider diversity of cultures. Religions, languages, educational

attainment, skills, values, races, ages, genders and other differentiating variables may change the

environment of HRM.

Globalization:

It refers to the tendency of firms to extend their sales, ownership, and manufacturing to new

markets abroad. More globalization means more competition, make employees more productive

and to do things better and less expensively. Form helping firms like Dell cut global HR

communication costs, to formulating selection, training and compensation policies for expatriate

employees, managing globalization in world class firms is a major HR challenge.

Trends in the nature of work:

Upcoming issues should be identified by the HR meager based on the required position.

Technology may change the nature of work. Even factory jobs are more technologically

demanding. With global competition more manufacturing jobs are shifting to low-wage

countries. As just-in-time manufacturing techniques link day to day manufacturing schedules,

there has also been a dramatic increase in productivity there has been a shift to use nontraditional

workers *contingent or part time workers*. Today, the center of gravity in employment is

moving fast from manual and clerical workers to knowledge workers. In this environment,

managers need new world-class HR management systems and skills to select, train and motivate

these employees and to get them to work more like committed partners.

Source: * Decenzo Robbins, Fundamentals of HRM 8th Edition.

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3.6 Changing role of HR manager/management*

As technology in such areas as testing and interviewing begin to emerge, the HR department begins to

play an expanded role in employee selection, training and promotions. The changing roles of HRM are as

follows:

1. HR and Boosting Productivity:

HR plays a pivotal role in lowering labor costs. As labor costs decreases, productivity will increase. HR

department plays role in planning and implementing corporate downsizings and then taking steps to

maintain the morale of the remaining employees. HR helps to prioritize tasks and reduce jobs stress.

2. HR and Responsiveness:

Downsizing, flattening, the pyramid, empowering employees and organizing around teams are aimed at

facilitating communications and making it easier for decisions to be made and for the company to respond

quickly to its customer’s needs and its competitor’s challenges. HR plays a crucial role in accomplishing

this.

3. HR and Service:

Employee behavior is particularly important in service firms. Service organizations have little to sell but

their good service, and that makes them uniquely dependent on their employee’s attitudes and motivation.

Progressive HR practice *career progress, developing orientation programs for new employees* appear to

build employee commitment and morale, employees will then provide excellent customer service, which

in turn will generate profits.

4. HR and Employee commitment:

Intense global competition and the need for more responsiveness put a premium on employee

commitment. High commitment firms aim to ensure their employees have every opportunity to fully use

all they can be. HR practices are crucial here, in establishing career-oriented performance appraisal

procedures and open-job posting and job transfer practices.

5. HR and corporate strategy:

The most striking change in HR’s role is its growing importance in develop and implementing strategy.

Globally competitive and quality oriented industries involving HR in the earliest stages of developing and

implementing the firm’s strategic plan, rather than letting HR just react to it.

Source: * Alfred J. Walker, Web-Based Human Resources: The Technologies and Trends That Are

Transforming HR, Published By Tata McGraw Hill [2001].

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3.7 Functions of HRM*

HRM consists of four basic functions:

1. Staffing

2. Training and development

3. Motivation and

4. Maintenance.

The four HRM activities are highly affected by what occurs outside the organization. It also

important to recognize these environmental influences. The influences are:

a. The dynamic environment:

We must prepare ourselves for events that have a significant effect on our lives. HRM

is no different. Many events help shape our field. Some of the more obvious include

globalization, technology, workforce diversity, continuous improvement, teams, employee

involvement and ethics.

b. Government legislation:

Govt. legislation has given employees the right to take unpaid leave. Laws supporting

this and other employer actions are important to the HRM process. Laws *civil Rights Act*,

Equal pay act, Mandatory Retirement Act etc* have had a tremendous effect on HRM in

organizations.

c. Labor Union:

The union acts on behalf of its members to secure, wages, hours and other term and

conditions of employment, union may promote and foster grievance procedure or specified

process for resolving conflict between workers and management. When a union and HRM

practices are spelled out in a negotiated agreement, employers cannot fire for unjustified reason.

d. Management practices:

The last area of external influence is current mgt. thoughts early theories *Frederick

Taylor, Marry Parker Follet, Elton Mayo* of Mgt that promoted today’s HRM operations.

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The four HRM functions are as follows—

1. Staffing:

Activities in HRM concerned with seeking and hiring qualified employees. The

goal of the staffing function is to locate competent employees and bring them into the

organization. Staffing function includes—

i. Strategic human resource planning:

When an organization plans strategically, it determines its goals

and objectives for a given period of time. Once strategic plan has been developed, HRM

identifies essential qualifications for a particular job.

ii. Recruiting: The goal of recruiting is to give enough information about the job

to attract a large number of qualified applicants and simultaneously

discourage the unqualified from applying.

iii. Selection: Selection attempts to thin out the large set of applications that

arrived during the recruiting phase and to select an applicant who will be

successful on the job. HRM must ensure the good prospect accepts a job offer.

2. Training and Development:

Activities in HRM concerned with assisting employees to develop

up-to-date knowledge and abilities. HRM attempts to reach the goal of having competent,

adapted employees who possess the up-to-date skills, knowledge and abilities needed to

perform their current jobs more successfully.

i. Employee training: Employee training is designed to assist employees in acquiring

better skills for their current job or to promote competency in the new job.

ii. Employee development: The focus of employee is on a future position within the

organization for which the employee requires additional competencies.

iii. Career development: Career development programs are designed to assist

employees in advancing their work lives.

iv. Organization Development: Organization development focuses on system wide

changes in the organization.

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3. Motivation:

Activities in HRM concerned with helping employees exert at high energy,

levels. It has been proposed that one’s performance in an organization is a function of two

factors: ability and willingness to do the job. Motivation process includes:

i. Motivation theories and job design: From implications of motivational theories

*Hierarchy of needs, theory x and Theory Y* we understand what motivates people at

work. Employees will perform at their best if jobs are properly designed.

ii. Performance appraisal: Performance standards for each employee must also be set to

provide feedback to employees.

iii. Compensation and benefit: The compensation and benefit activity in the organization

should be adapted to and coordinated with a pay for performance plan.

4. Maintenance:

Activities in HRM concerned with maintain employee’s commitment and

loyalty to ht organization. This phase includes:

i. Safety and health: Safety and health programs should protect employee’s health and

physical conditions.

ii. Communications: In addition to protect employee’s welfare, HRM programs

designed to provide information to employees.

iii. Employee relations: Employee relations programs should ensure that employees are

kept well informed through the company’s Internet, Bulletin Boards, town hall

meetings.

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HR planning:

The company determines what job needs to be done and how what types of workers will be

required. In management terminology, we call this organizing. Thus, establishing the structure of

the organization assist in determining the skills, knowledge, and abilities required of jobholders.

Only at this point do us being to look at people to meet thus criteria. And that’s where human

resource management comes in to play an integral role. Let’s look at how HR planning operates

with in strategic planning process.

This organization has some planning in HR .this planning are given bellow:

1. Mission: Determining what business the organization will be in. This will be the more

profitable that are find firstly, get information and then take the risk to start.

2. Objectives and goals: setting the goal and the objectives. They take the objectives and make

it goals for achievement.

3. Strategy: Determining how goals and objectives will be attained.

4. Structure: Determining what jobs need to be done and by whom. Which people appropriate

for the right place and then they are found the people by the advertising.

5. People: Matching skills, knowledge, and abilities to required jobs. People are the main

elements for the organization. So this company fined this kind of people.

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3.8 Recruitment

Meaning of Recruitment

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the organization”. Recruitment is the

activity that links the employers and the job seekers. A few definitions of recruitment are:

A process of finding and attracting capable applicants for employment. The process begins

when new recruits are sought and ends when their applications are submitted. The result is a pool

of applications from which new employees are selected.

It is the process to discover sources of manpower to meet the requirement of staffing schedule

and to employ effective

Measures for attracting that manpower in adequate numbers to facilitate effective selection of an

efficient working force.

Recruitment of candidates is the function preceding the selection, which helps create a pool of

prospective employees for the organization so that the management can select the right

candidate for the right job from this pool. The main objective of the recruitment process is to

expedite the selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified

applicants for the future human resources needs even though specific vacancies do not exist.

Usually, the recruitment process starts when a manger initiates an employee requisition for a

specific vacancy or an anticipated vacancy.

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Recruitment needs are of three types

PLANNED

i.e. the needs arising from changes in organization and retirement policy.

ANTICIPATED

anticipated needs are those movements in personnel, which an organization can predict

by studying trends in internal and external environment.

UNEXPECTED

Resignation, deaths, accidents, illness give rise to unexpected needs.

Recruitment Strategies

Recruitment is of the most crucial roles of the human resource professionals. The level of

performance of an organization depends on the effectiveness of its recruitment function.

Organizations have developed and follow recruitment strategies to hire the best talent for their

organization and to utilize their resources optimally. A successful recruitment strategy should be

well planned and practical to attract more and good talent to apply in the organization.

For formulating an effective and successful recruitment strategy, the strategy should cover the

following elements:

1. Identifying and prioritizing jobs

Requirements keep arising at various levels in every organization; it is almost a never-ending

process. It is impossible to fill all the positions immediately. Therefore, there is a need to identify

the positions requiring immediate attention and action. To maintain the quality of the recruitment

activities, it is useful to prioritize the vacancies whether to focus on all vacancies equally or

focusing on key jobs first.

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2. Candidates to target

The recruitment process can be effective only if the organization completely understands the

requirements of the type of candidates that are required and will be beneficial for the

organization. This covers the following parameters as well:

o Performance level required: Different strategies are required for focusing on

hiring high performers and average performers.

o Experience level required: the strategy should be clear as to what is the

experience level required by the organization. The candidate’s experience can

range from being a fresher to experienced senior professionals.

o Category of the candidate: the strategy should clearly define the target candidate.

He/she can be from the same industry, different industry, unemployed, top

performers of the industry etc.

3. Sources of recruitment

The strategy should define various sources (external and internal) of recruitment. Which are

the sources to be used and focused for the recruitment purposes for various positions?

Employee referral is one of the most effective sources of recruitment.

4. Trained recruiters

The recruitment professionals conducting the interviews and the other recruitment activities

should be well-trained and experienced to conduct the activities. They should also be aware

of the major parameters and skills (e.g.: behavioral, technical etc.) to focus while

interviewing and selecting a candidate.

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5. How to evaluate the candidates

The various parameters and the ways to judge them i.e. the entire recruitment process should

be planned in advance. Like the rounds of technical interviews, HR interviews, written tests,

psychometric tests etc.

3.9 HR Challenges in Recruitment

Recruitment is a function that requires business perspective, expertise, ability to find and match

the best potential candidate for the organization, diplomacy, marketing skills (as to sell the

position to the candidate) and wisdom to align the recruitment processes for the benefit of the

organization. The HR professionals – handling the recruitment function of the organization- are

constantly facing new challenges. The biggest challenge for such professionals is to source or

recruit the best people or potential candidate for the organization.

In the last few years, the job market has undergone some fundamental changes in terms of

technologies, sources of recruitment, competition in the market etc. In an already saturated job

market, where the practices

Like poaching and raiding are gaining momentum, HR professionals are constantly facing new

challenges in one of their most important function- recruitment. They have to face and conquer

various challenges to find the best candidates for their organizations.

The major challenges faced by the HR in recruitment are:

Adaptability to globalization – The HR professionals are expected and required to keep in

tune with the changing times, i.e. the changes taking place across the globe. HR should

maintain the timeliness of the process

Lack of motivation – Recruitment is considered to be a thankless job. Even if the

organization is achieving results, HR department or professionals are not thanked for

recruiting the right employees and performers.

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Process analysis – The immediacy and speed of the recruitment process are the main

concerns of the HR in recruitment. The process should be flexible, adaptive and

responsive to the immediate requirements. The recruitment process should also be cost

effective.

Strategic prioritization – The emerging new systems are both an opportunity as well as a

challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing

the tasks to meet the changes in the market has become a challenge for the recruitment

professionals.

3.10 Forms of Recruitment

The organizations differ in terms of their size, business, processes and practices. A few decisions by

the recruitment professionals can affect the productivity and efficiency of the organization.

Organizations adopt different forms of recruitment practices according to the specific needs of the

organization. The organizations can choose from the centralized or decentralized forms of

recruitment, explained below:

CENTRALIZED RECRUITMENT

The recruitment practices of an organization are centralized when the HR / recruitment department at

the head office performs all functions of recruitment. Recruitment decisions for all the business

verticals and departments of an organization are carried

Out by the one central HR (or recruitment) department. Centralized from of recruitment is

commonly seen in government organizations.

Benefits of the centralized form of recruitment are:

Reduces administration costs

Better utilization of specialists

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Uniformity in recruitment

Interchangeability of staff

Reduces favoritism

Every department sends requisitions for recruitment to their central office

DECENTRALIZED RECRUITMENT

Decentralized recruitment practices are most commonly seen in the case of conglomerates

operating in different and diverse business areas. With diverse and geographically spread

business areas and offices, it becomes important to understand the needs of each department and

frame the recruitment policies and procedures accordingly. Each department carries out its own

recruitment. Choice between the two will depend upon management philosophy and needs of

particular organization. In some cases combination of both is used. Lower level staffs as well as

top level executives are recruited in a decentralized manner.

3.11 Equal Employment Opportunity

Equal opportunity employment refers to the approach of the employers to ensure the practice of

being fair and impartial in the employment process. *The term "Equal Opportunity Employment"

was first given by President Lyndon B. Johnson when he signed Executive Order 11246 which was

created to prohibit federal contractors from discriminating against employees on the basis of race,

sex, creed, religion, color, or national origin*. The scope of the order also covered the discrimination

on the basis of the minority status.

Discrimination in employment

Discrimination refers to the any kind of prejudice, biasness or favoritism on the basis of

disability

race

age

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sex

sexuality

pregnancy

Marital status

In employment. No person should be treated less favorably than any other on the basis of the

specified issues above. Many countries (like SA) have already implemented Equal Opportunity

Act, making it against the law to treat anybody unfairly.

Diversity in workforce

With the globalization and the increasing size of the organizations, the diversity in the workforce

is increasing i.e. people from diverse backgrounds, educational background, age groups, race,

gender, abilities etc come together to work for one organization and common objectives.

Therefore, it is the responsibility of the employer to create an equality-based and discrimination-

free working environment and practices.

Equal opportunity means treating people equally and fairly irrespective of their race, religion,

sex, age, disability etc. Giving women an equal treatment and access to opportunities at the

workplace. Any employee should be ill-treated or harassed by the employer or other employees.

Equal Employment Opportunity principles help to realize and respect the actual worth of the

individual on the basis of his knowledge, skills, abilities and merit. And the policy should cover

all the employees of an organization whether permanent or temporary, contractual etc.

Equal employment opportunity is necessary to ensure:

To give fair access to the people of all development opportunities

To create a fair organization, industry and society.

To encourage and give disadvantaged or disabled people a fair chance to grow with the

society

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3.12 Recruiting Expatriates

Expatriate is a person who leaves his country to work and live in a foreign country. Generally,

expatriates are the nationals from the other countries than the host and the MNC’s parent country,

i.e. expatriates are the third country nationals.

The unavailability of the required skills and talents takes the organization to source talent from

other countries. The procedures and processes of recruiting and selecting the human resources are

never uniform even within a single organization. The procedures vary according to the post, the

skill set required, the nature of work etc. More of it is seen in the case of recruitment of expatriates.

The recruitment and selection procedures and considerations are drastically different for expatriates

than that

Of the domestic employees. Recruitment of expatriates involves greater time, monetary

resources and other indirect costs. Improper recruitment and selection can cause the expatriates

to return hastily or a decline in their performance.

A mismatch between job (its requirements) and people can reduce the effectiveness of other

human resource activities and can affect the performance of the employees as well as the

organization.

Recruiting expatriates require special considerations and skills to select the best person for the

job. Except for a few expatriate selection policies, the expatriate selection criterion is generally

organization and nation specific.

The recruiters for recruiting the expatriates should be carefully selected and trained. The

recruitment strategies for expatriates should be aligned with requirements of the job. The

interviews of expatriates are designed in a manner to judge there:

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Adaptability to the new culture

Intercultural interaction

Flexibility

Professional expertise

Past international work experience

Tolerance and open-mindedness

Family situation

Language ability

Attitude and motivation

Empathy towards local culture

A few researches in this field also suggest that women are more likely to be successful in certain

positions as expatriates as they are more sensitive towards new culture and people. Recruitment

of expatriates should be followed by cultural and sensitivity training, and language training.

3.13 Purpose & Importance of Recruitment

Attract and encourage more and more candidates to apply in the organization.

Create a talent pool of candidates to enable the selection of best candidates for the organization.

Determine present and future requirements of the organization in conjunction with its personnel

planning and job analysis activities.

Recruitment is the process which links the employers with the employees.

Increase the pool of job candidates at minimum cost.

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Help increase the success rate of selection process by decreasing number of visibly under

qualified or overqualified job applicants.

Help reduce the probability that job applicants once recruited and selected will leave the

organization only after a short period of time.

Meet the organizations legal and social obligations regarding the composition of its workforce.

Begin identifying and preparing potential job applicants who will be appropriate candidates.

Increase organization and individual effectiveness of various recruiting techniques and sources

for all types of job applicants

3.14 Sources of Recruitment

Every 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.

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SOURCES OF RECRUITMENT

3.15 Recruitment Process

The recruitment and selection is the major function of the human resource department and

recruitment process is the first step towards creating the competitive strength and the strategic

advantage for the organizations. Recruitment process involves a systematic procedure from sourcing

the candidates to arranging and conducting the interviews and requires many resources and time. A

general recruitment process is as follows:

Identifying the vacancy:

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The recruitment process begins with the human resource department receiving requisitions for

recruitment from any department of the company. These contain:

• Posts to be filled

• Number of persons

• Duties to be performed

• Qualifications required

Preparing the job description and person specification.

Locating and developing the sources of required number and type of employees

(Advertising etc).

Short-listing and identifying the prospective employee with required characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making

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1. Identify vacancy

2. Prepare job description and person specification

3. Advertising the vacancy

4. Managing the response

5. Short-listing

6. Arrange interviews

7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final interviews

and the decision making, conveying the decision and the appointment formalities.

3.16 Difference between Recruitment and Selection

Both recruitment and selection are the two phases of the employment process. The differences

between the two are:

1. Recruitment is the process of searching the candidates for employment and stimulating them to

apply for jobs in the organization WHEREAS selection involves the series of steps by which the

candidates are screened for choosing the most suitable persons for vacant posts.

2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection

of best candidates for the organization, by attracting more and more employees to apply in the

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organization WHEREAS the basic purpose of selection process is to choose the right candidate to

Fill the various positions in the organization.

3. Recruitment is a positive process i.e. encouraging more and more employees to apply

WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection

is concerned with selecting the most suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitment WHEREAS selection results in a

contract of service between the employer and the selected employee.

3.17 Factors Affecting Recruitment

The recruitment function of the organizations is affected and governed by a mix of various internal

and external forces. The internal forces or factors are the factors that can be controlled by the

organization. And the external factors are those factors which cannot be controlled by the

organization. The internal and external forces affecting recruitment function of an organization are:

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FACTORS AFFECTING RECRUITMENT

3.18 Training and development

Training and development is a subsystem of an organization. It ensures that randomness is

reduced and learning or behavioral change takes place in structured format.

Traditional Approach: Most of the organizations before never used to believe in training. They

were holding the traditional view that managers are born and not made. There were also some

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views that training is a very costly affair and not worth. Organizations used to believe more in

executive pinching. But now the scenario seems to be changing.

The modern approach of training and development is that Indian Organizations have realized

the importance of corporate training. Training is now considered as more of retention tool than a

cost. The training system in Indian Industry has been changed to create a smarter workforce and

yield the best results

Training and development objectives

The principal objective of training and development division is to make sure the availability of a

skilled and willing workforce to an organization. In addition to that, there are four other

objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn,

enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing

individual effectiveness.

Functional Objectives – maintain the department’s contribution at a level suitable to the

organization’s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the

needs and challenges of the society.

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Figure: Developing training objectives

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Importance of Training and Development

Optimum Utilization of Human Resources – Training and Development helps in optimizing

the utilization of human resource that further helps the employee to achieve the organizational

goals as well as their individual goals.

Development of Human Resources – Training and Development helps to provide an

opportunity and broad structure for the development of human resources’ technical and

behavioral skills in an organization. It also helps the employees in attaining personal growth.

Development of skills of employees – Training and Development helps in increasing the job

knowledge and skills of employees at each level. It helps to expand the horizons of human

intellect and an overall personality of the employees.

Productivity – Training and Development helps in increasing the productivity of the

employees that helps the organization further to achieve its long-term goal.

Team spirit – Training and Development helps in inculcating the sense of team work,

team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within

the employees.

Organization Culture – Training and Development helps to develop and improve the

organizational health culture and effectiveness. It helps in creating the learning culture

within the organization.

Organization Climate – Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings from

leaders, subordinates, and peers.

Quality – Training and Development helps in improving upon the quality of work and

work-life.

Healthy work environment – Training and Development helps in creating the healthy

working environment. It helps to build good employee, relationship so that individual

goals aligns with organizational goal.

Health and Safety – Training and Development helps in improving the health and safety

of the organization thus preventing obsolescence.

Morale – Training and Development helps in improving the morale of the work force.

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Image – Training and Development helps in creating a better corporate image.

Profitability – Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization gets

more effective decision making and problem solving. It helps in understanding and

carrying out organizational policies

Training and Development helps in developing leadership skills, motivation, loyalty,

better attitudes, and other aspects that successful workers and managers usually display.

Importance of Training Objectives

Training objectives are one of the most important parts of training program. While some people

think of training objective as a waste of valuable time. The counterargument here is that

resources are always limited and the training objectives actually lead the design of training. It

provides the clear guidelines and develops the training program in less time because objectives

focus specifically on needs. It helps in adhering to a plan.

Training objective tell the trainee that what is expected out of him at the end of the training

program. Training objectives are of great significance from a number of stakeholder

perspectives,

1.Trainer

2.Trainee

3.Designer

4.Evaluator

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Trainer – The training objective is also beneficial to trainer because it helps the trainer to

measure the progress of trainees and make the required adjustments. Also, trainer comes in a

position to establish a relationship between objectives and particular segments of training.

Trainee – The training objective is beneficial to the trainee because it helps in reducing the

anxiety of the trainee up to some extent. Not knowing anything or going to a place which is

unknown creates anxiety that can negatively affect learning. Therefore, it is important to keep the

participants aware of the happenings, rather than keeping it surprise.

Secondly, it helps in increase in concentration, which is the crucial factor to make the training

successful. The objectives create an image of the training program in trainee’s mind that

actually helps in gaining attention.

Thirdly, if the goal is set to be challenging and motivating, then the likelihood of achieving those

goals is much higher than the situation in which no goal is set. Therefore, training objectives

helps in increasing the probability that the participants will be successful in training.

Designer – The training objective is beneficial to the training designer because if the designer is

aware what is to be achieved in the end then he’ll buy the training package according to that

only. The training designer would then look for the training methods, training equipments, and

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training content accordingly to achieve those objectives. Furthermore, planning always helps in

dealing effectively in an unexpected situation. Consider an example; the objective of one training

program is to deal effectively with customers to increase the sales. Since the objective is known,

the designer will design a training program that will include ways to improve the interpersonal

skills, such as verbal and non verbal language, dealing in unexpected situation i.e. when there is

a defect in a product or when a customer is angry.

Therefore, without any guidance, the training may not be designed appropriately.

Evaluator – It becomes easy for the training evaluator to measure the progress of the trainees

because the objectives define the expected performance of trainees. Training objective is an

important to tool to judge the performance of participants.

Training and Human Resource Management:

The HR functioning is changing with time and with this change, the relationship between the

training function and other management activity is also changing. The training and development

activities are now equally important with that of other HR functions. Gone are the days, when

training was considered to be futile, waste of time, resources, and money. Now days, training are

an investment because the departments such as, marketing & sales, HR, production, finance, etc

depends on training for its survival. If training is not considered as a priority or not seen as a vital

part in the organization, then it is difficult to accept that such a company has effectively carried

out HRM. Training actually provides the opportunity to raise the profile development activities

in the organization.

To increase the commitment level of employees and growth in quality movement (concepts of

HRM), senior management team is now increasing the role of training. Such concepts of HRM

require careful planning as well as greater emphasis on employee development and long term

education. Training is now the important tool of Human Resource Management to control the

attrition rate because it helps in motivating employees, achieving their professional and personal

goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of

skill development and covers a multitude of courses.

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Role of HRD Professionals in Training

This is the era of cut-throat competition and with this changing scenario of business; the role of

HR professionals in training has been widened. HR role now is:

1. Active involvement in employee education

2. Rewards for improvement in performance

3. Rewards to be associated with self esteem and self worth

4. Providing pre-employment market oriented skill development education and post employment

support for advanced education and training

5. Flexible access i.e. anytime, anywhere training

Models of Training:

Training is a sub-system of the organization because the departments such as, marketing & sales,

HR, production, finance, etc depends on training for its survival. Training is a transforming

process that requires some input and in turn it produces output in the form of knowledge, skills,

and attitudes (KSAs).

The training system

A System is a combination of things or parts that must work together to perform a particular

function. An organization is a system and training is a sub system of the organization.

The System Approach views training as a sub system of an organization. System Approach can

be used to examine broad issues like objectives, functions, and aim. It establishes a logical

relationship

between the sequential stages in the process of training need analysis (TNA), formulating,

delivering, and evaluating.

There are 4 necessary inputs i.e. technology, man, material, time required in every system to

produce products or services. And every system must have some output from these inputs in

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order to survive. The output can be tangible or intangible depending upon the organization’s

requirement. A system approach to training is planned creation of training program. This

approach uses step-by-step procedures to solve the problems. Under systematic approach,

training is undertaken on planned basis. Out of this planned effort, one such basic model of five

steps is system model that is explained below.

Organization are working in open environment i.e. there are some internal and external forces,

that poses threats and opportunities, therefore, trainers need to be aware of these forces which

may impact on the content, form, and conduct of the training efforts. The internal forces are the

various demands of the organization for a better learning environment; need to be up to date with

the latest technologies.

The three model of training are:

1. System Model

2. Instructional System Development Model

3. Transitional model

System Model: The system model consists of five phases and should be repeated on a

regular basis to make further improvements. The training should achieve the purpose of

helping employee to perform their work to required standards. The steps involved in

System Model of training are as follows:

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1. Analyze and identify the training needs i.e. to analyze the department, job, employees

requirement, who needs training, what do they need to learn, estimating training cost, etc The

next step is to develop a performance measure on the basis of which actual performance

would be evaluated.

2. Design and provide training to meet identified needs. This step requires developing

objectives of training, identifying

3. Develop- This phase requires listing the activities in the training program that will assist

the participants to learn, selecting delivery method, examining the training material,

validating information to be imparted to make sure it accomplishes all the goals & objectives.

4. Implementing is the hardest part of the system because one wrong step can lead to the

failure of whole training program.

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5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent

work performance. Making necessary amendments to any of the previous stage in order to

remedy or improve failure practices.

Instructional System Development Model

Instructional System Development model or ISD training model was made to answer the

training problems. This model is widely used now-a-days in the organization because it is

concerned with the training need on the job performance. Training objectives are defined on the

basis of job responsibilities and job description and on the basis of the defined objectives

individual progress is measured. This model also helps in determining and developing the

favorable strategies, sequencing the content, and delivering media for the types of training

objectives to be achieved.

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The Instructional System Development model comprises of five stages:

1. ANALYSIS – This phase consist of training need assessment, job analysis, and target

audience analysis.

2. PLANNING – This phase consist of setting goal of the learning outcome, instructional

objectives that measures behavior of a participant after the training, types of training material,

media selection, methods of evaluating the trainee, trainer and the training program, strategies to

impart knowledge i.e. selection of content, sequencing of content, etc.

3. DEVELOPMENT – This phase translates design decisions into training material. It consists

of developing course material for the trainer including handouts, workbooks, visual aids,

demonstration props, etc, course material for the trainee including handouts of summary.

4. EXECUTION – This phase focuses on logistical arrangements, such as arranging speakers,

equipments, benches, podium, food facilities, cooling, lighting, parking, and other training

accessories.

5. EVALUATION – The purpose of this phase is to make sure that the training program has

achieved its aim in terms of subsequent work performance. This phase consists of identifying

strengths and weaknesses and making necessary amendments to any of the previous stage in

order to remedy or improve failure practices.

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Transitional model :

Transitional model focuses on the organization as a whole. The outer loop describes the vision,

mission and values of the organization on the basis of which training model i.e. inner loop is

executed.

Vision – focuses on the milestones that the organization would like to achieve after the defined

point of time. A vision statement tells that where the organization sees itself few years down the

line. A vision may include setting a role model, or bringing some internal transformation, or may

be promising to meet some other deadlines.

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Mission – explain the reason of organizational existence. It identifies the position in the

community. The reason of developing a mission statement is to motivate, inspire, and inform

The employees regarding the organization. The mission statement tells about the identity that

how the organization would like to be viewed by the customers, employees, and all other

stakeholders.

Values – is the translation of vision and mission into communicable ideals. It reflects the deeply

held values of the organization and is independent of current industry environment. For example,

values may include social responsibility, excellent customer service, etc.

The mission, vision, and values precede the objective in the inner loop. This model considers the

organization as a whole. The objective is formulated keeping these three things in mind and then

the training model is further implemented.

Training Need Analysis (TNA)

An analysis of training need is an essential requirement to the design of effective training. The

purpose of training need analysis is to determine whether there is a gap between what is

required for effective performance and present level of performance.

Why training need analysis?

Training need analysis is conducted to determine whether resources required are available or not.

It helps to plan the budget of the company, areas where training is required, and also highlights

the occasions where training might not be appropriate but requires alternate action.

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Training Need arises at three levels:

Corporate need and training need are interdependent because the organization performance

ultimately depends on the performance of its individual employee and its sub group.

Organizational Level – Training need analysis at organizational level focuses on strategic

planning, business need, and goals. It starts with the assessment of internal environment of the

organization such as, procedures, structures, policies, strengths, and weaknesses and external

environment such as opportunities and threats.

After doing the SWOT analysis, weaknesses can be dealt with the training interventions, while

strengths can further be strengthened with continued training. Threats can be reduced by

identifying the areas where training is required. And, opportunities can be exploited by balancing

it against costs.

For this approach to be successful, the HR department of the company requires to be involved in

strategic planning. In this planning, HR develops strategies to be sure that the employees in the

organization have the required Knowledge, Skills, and Attributes (KSAs) based on the future

KSAs requirements at each level.

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Individual Level – Training need analysis at individual level focuses on each and every

individual in the organization. At this level, the organization checks whether an employee is

performing at desired level or the performance is below expectation. If the difference between

the expected performance and actual performance comes out to be positive, then certainly there

is a need of training. However, individual competence can also be linked to individual need. The

methods that are used to analyze the individual need are:

Appraisal and performance review

Peer appraisal

Competency assessments

Subordinate appraisal

Client feedback

Customer feedback

Self-assessment or self-appraisal

Operational Level – Training Need analysis at operational level focuses on the work that is

being assigned to the employees. The job analyst gathers the information on whether the job is

clearly understood by an employee or not. He gathers this information through technical

interview, observation, psychological test; questionnaires asking the closed ended as well as

open ended questions, etc. Today, jobs are dynamic and keep changing over the time. Employees

need to prepare for these changes. The job analyst also gathers information on the tasks needs to

Be done plus the tasks that will be required in the future. Based on the information collected,

training Need analysis (TNA) is done.

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Figure: Training needs analysis

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Training Methods:

1. Lecture

The lecture method is the most widely used form of presentation. Every instructor should know

how to develop and present a lecture. They also should understand the advantages and

limitations of this method. Lectures are used for introduction of new subjects, summarizing

ideas, showing relationships between theory and practice, and reemphasizing main points. The

lecture method is adaptable to many different settings, including either small or large groups.

Lectures also may be used to introduce a unit of instruction or a complete training program.

Finally, lectures may be combined with other teaching methods to give added meaning and

direction.

The lecture method of teaching needs to be very flexible since it may be used in different ways.

For example, there are several types of lectures such as the illustrated talk where the speaker

relies heavily on visual aids to convey ideas to the listeners. With a briefing, the speaker presents

a concise array of facts to the listeners who normally do not expect elaboration of supporting

material. During a formal lecture, the speaker's purpose is to inform, to persuade, or to entertain

with little or no verbal participation by the students. When using a teaching lecture, the instructor

plans and delivers an oral presentation in a manner that allows some participation by the students

and helps direct them toward the desired learning outcomes.

Advantages and Disadvantages of the Lecture:

There are a number of advantages to lectures. For example, a lecture is a convenient way to

instruct large groups. If necessary, a public address system can be used to amplify the speaker's

voice. Lectures can be used to present information that would be difficult for the student to get in

other ways, particularly if the students do not have the time required for research, or if they do

not have access to reference material. Lectures also can usefully and successfully supplement

other teaching devices and methods. A brief introductory lecture can give direction and purpose

to a demonstration or prepare students for a discussion by telling them something about the

subject matter to be covered.

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In a lecture, the instructor can present many ideas in a relatively short time. Facts and ideas that

have been logically organized can be concisely presented in rapid sequence. Lecturing is

unquestionably the most economical of all teaching methods in terms of the time required to

present a given amount of material.

The lecture is particularly suitable for introducing a new subject and for explaining the necessary

back- ground information. By using a lecture in this way, the instructor can offer students with

varied back- grounds a common understanding of essential principles and facts.

Although the lecture method can help the instructor meet special challenges, it does have several

drawbacks. Too often the lecture inhibits student participation and, as a consequence, many

students willingly let the instructor do all the work. Learning is an active process, and the lecture

method tends to foster passiveness and teacher-dependence on the part of the students. As a

teaching method, the lecture does not bring about maximum attainment of certain types of

learning outcomes. Motor skills, for example, can seldom be learned by listening to a lecture.

The only effective way students can perfect such skills is through hands-on practice.

The lecture does not easily allow the instructor to estimate the students' understanding as the

material is covered. Within a single period, the instructor may unwittingly present more

information than students can absorb, and the lecture method provides no accurate means of

checking student progress.

Many instructors find it difficult to hold the attention of all students in a lecture throughout the

class period. To achieve desired learning outcomes through the lecture method, an instructor

needs considerable skill in speaking. As indicated in Chapter 1, a student's rate of retention drops

off significantly after the first 10-15 minutes of a lecture and picks back up at the end. In

addition, the retention rate for a lecture is about five percent after 24 hours. In comparison, the

rate of retention for active learning goes up dramatically. An instructor who can introduce some

form of active student participation in the middle of a lecture will greatly increase retention. One

form of active learning that has been successfully used is cooperative or group learning.

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2. Coaching

Today's organizations feature fewer management layers and emphasize individual responsibility.

Successful delegation and empowerment relies on effective coaching. This Coaching &

Mentoring training course focuses on the methods by which managers develop the

performance of individuals in their team. It looks at two main types of coaching, providing

opportunities for managers to apply these skills.

Coaching & Mentoring Objectives:

At the end of this coaching and mentoring training course participants will learn about:

Coaching to improve individual performance

The relationship between coaching and other performance management techniques

The key coaching styles (input and output)

The coaching process and skills

The role of the mentor and mentoring programmes

Coaching & Mentoring Content

Coaching styles: Input and output coaching

Coaching in the context of other performance development techniques

Applications for coaching

Measuring results

Coaching Process: A coaching model

Developing empathy

Questioning techniques

Putting coaching into practice

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Mentoring: Structuring a Mentoring programme to give benefits to the company and

individuals involved

Who needs mentoring and who makes a good mentor?

Responsibilities, skills and overcoming problems

Defining and developing the mentoring relationship

3. Job rotation

For the executive, job rotation takes on different perspectives. The executive is usually not

simply going to another department. In some vertically integrated organizations, for example,

where the supplier is actually part of same organization or subsidiary, job rotation might be to

the supplier to see how the business operates from the supplier point of view. Learning how the

organization is perceived from the outside broadens the executive’s outlook on the process of the

organization. Or the rotation might be to a foreign office to provide a global perspective.

For managers being developed for executive roles, rotation to different functions in the company

is regular carried out.

This approach allows the manger to operate in diverse roles and understand the different issues

that crop up. If someone is to be a corporate leader, they must have this type of training. A recent

study indicated that the single most significant factor that leads to leader’s achievement was the

variety of experiences in different departments, business units, cities, and countries.

An organized and helpful way to develop talent for the management or executive level of the

organization is job rotation. It is the process of preparing employees at a lower level to replace

someone at the next higher level. It is generally done for the designations that are crucial for the

effective and efficient functioning of the organization.

Benefits of Job Rotation

Some of the major benefits of job rotation are:

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It provides the employees with opportunities to broaden the horizon of knowledge, skills,

and abilities by working in different departments, business units, functions, and countries

Identification of Knowledge, skills, and attitudes (KSAs) required

It determines the areas where improvement is required

Assessment of the employees who have the potential and caliber for filling the position

4. Movies/videos/computer-based training

Computer-based training (CBT) is any course of instruction whose primary means of delivery is

a computer. A CBT course (sometimes called courseware ) may be delivered via a software

product installed on a single computer, through a corporate or educational intranet, or over the

Internet as Web-based training . CBT can be used to teach almost any conceivable subject, but it

is especially popular for computer-related studies. People often take advantage of CBT to learn

how to run a particular computer application, such as Microsoft Excel , or to learn a computer

programming language, such as Visual Basic .

Benefits of Computer based training:

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5. Business Games Training

Business games are the type of simulators that try to present the way an industry, company,

organization, consultancy, or subunit of a company functions. Basically, they are based on the set

of rules, procedures, plans, relationships, principles derived from the research. In the business

games, trainees are given some information that describes a particular situation and are then

asked to make decisions that will best suit in the favor of the company. And then the system

provides the feedback about the impact of their decisions.

Again, on the basis of the feedback they are asked to make the decisions again. This process

continues until some meaningful results do not came out or some predefined state of the

organization exists or a specified number of trails are completed.

As an example, if the focus is on organization's financial state, the game may end when the

organization reach at desirable or defined profitability level.

Some of the benefits of the business games are:

It develops leadership skills

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It improves application of total quality principles

It develops skills in using quality tools

It strengthen management skills

It demonstrates principles and concepts

It explores and solves complex problem

6. Case Study

Case Studies try to simulate decision making situation that trainees may find at their work place.

It reflects the situations and complex problems faced by managers, staff, HR, CEO, etc. The

objective of the case study method is to get trainees to apply known concepts and ideologies and

ascertain new ones. The case study method emphasize on approach to see a particular problem

rather than a solution. Their solutions are not as important as the understanding of advantages

and disadvantages.

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Procedure of the Case Study Method

the trainee is given with some written material, and the some complex situations of a real or

imaginary organization. A case study may range from 50 to 200 pages depending

upon the problem of the organization.

a series of questions usually appears at the end of the case study.

The longer case studies provide enough of the information to be examined while the shorter

ones require the trainee to explore and conduct research to gather appropriate amount of

information.

the trainee then makes certain judgment and opines about the case by identifying and giving

possible solutions to the problem.

In between trainees are given time to digest the information. If there is enough time left, they

are also allowed to collect relevant information that supports their solution.

once the individuals reach the solution of a problem, they meet in small groups to discuss the

options, solutions generated.

then, the trainee meets with the trainer, who further discusses the case.

Case Study method focuses on:

Building decision making skills

Assessing and developing Knowledge, Skills and Attitudes (KSAs)

Developing communication and interpersonal skills

Developing management skills

Developing procedural and strategic knowledge

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7. Role Play

Role play is a simulation in which each participant is given a role to play. Trainees are given

with some information related to description of the role, concerns, objectives, responsibilities,

emotions, etc. Then, a general description of the situation, and the problem that each one of them

faces, is given. For instance, situation could be strike in factory, managing conflict, two parties in

conflict, scheduling vacation days, etc. Once the participants read their role descriptions, they act

out their roles by interacting with one another.

Role Plays helps in

Developing interpersonal skills and communication skills

Conflict resolution

Group decision making

Developing insight into one’s own behavior and its impact on others

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There are various types of role plays, such as:

Multiple Role Play – In this type of role play, all trainees are in groups, with each group acting

out the role play simultaneously. After the role play, each group analyzes the interactions and

identifies the learning points.

Single Role Play – One group of participants plays the role for the rest, providing

demonstrations of situation. Other participants observe the role play, analyze their interactions

with one another and learn from the play.

Role Rotation – It starts as a single role play. After the interaction of participants, the trainer will

stop the role play and discuss what happened so far. Then the participants are asked to exchange

characters. This method allows a variety of ways to approach the roles.

Spontaneous Role Play – In this kind of role play, one of the trainees plays herself while the

other trainees play people with whom the first participant interacted before.

8. Discussion

This method uses a lecturer to provide the learners with context that is supported, elaborated,

explains, or expanded on through interactions both among the trainees and between the trainer

and the trainees. The interaction and the communication between these two make it much more

effective and powerful than the lecture method. If the Discussion method is used with proper

sequence i.e. lectures, followed by discussion and questioning, can achieve higher level

knowledge objectives, such as problem solving and principle learning.

The Discussion method consists a two-way flow of communication i.e. knowledge in the form of

lecture is communicated to trainees, and then understanding is conveyed back by trainees to

trainer.

Understanding is conveyed in the form of verbal and non-verbal feedback that enables the trainer

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to determine whether the material is understood. If yes, then definitely it would help out the

trainees to implement it at their workplaces and if not, the trainer may need to spend more time

on that particular area by presenting the information again in a different manner.

Questioning can be done by both ways i.e. the trainees and the trainer. When the trainees ask

questions, they explain their thinking about the content of the lecture. A trainer who asks

questions stimulates thinking about the content of the lecture. Asking and responding questions

are beneficial to trainees because it enhance understanding and keep the trainees focused on the

content. Besides that, discussions, and interactions allow the trainee to be actively engaged in the

material of the trainer. This activity helps in improving recall.

9. Equipment Simulators

Equipment simulators are the mechanical devices that necessitate trainees to use some actions,

plans, measures, trials, movements, or decision processes they would use with equipment back

on the their respective work place.

It is imperative that the simulators be designed to repeat, as closely as possible, the physical

aspects of equipment and operational surroundings trainees will find at their work place. This is

also called as physical fidelity of the simulation.

Besides that, the mental conditions under which the equipment is operated such as, increasing

demands, pressure of time, and relationship with colleagues, subordinates, etc must also be

closely matched to what the trainees experience on the work place.

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The literature on socio-technical approaches to organizational development provides guidelines

for the design or redesign of tools. Human Resource professionals involved in propose of

simulators and their pre-testing should engage those who will be using the equipment and their

supervisors. Their input can help in reducing the potential resistance, errors in the equipment and

more importantly, it also increases the degree of reliability between the simulation and the work

setting.

Equipment simulators can be used in giving training to:

Air Traffic Controllers

Taxi Drivers

Telephone Operators

Ship Navigators

Maintenance Workers

Product Development Engineers

Airline Pilots

Military Officers

10. Demonstration

This method is a visual display of how something works or how to do something. As an

example, trainer shows the trainees how to perform or how to do the tasks of the job. In order to

be more effective, demonstration method should be should be accompanied by the discussion or

lecture method.

To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking the

task to be performed into smaller modules, easily learned parts. Then, the trainer sequentially

organizes those modules and prepares an explanation for why that part is required. While

performing the demonstration, trainer:

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demonstrates the task by describing how to do, while doing

Helps the focusing their attention on critical aspects of the task

Tells the trainees what you will be doing so they understand what you will be showing

them

Explains why it should be carried out in that way

The difference between the lecture method and the demonstration method is the level of

involvement of the trainee. In the lecture method, the more the trainee is involved, the more

learning will occur.

The financial costs that occur in the demonstration method are as follows:

Cost of training facility for the program

Cost of materials that facilitate training

Food, travel, lodging for the trainees and the trainers

Compensation of time spent in training to trainers and trainees

Cost related to creating content, material

Cost related to the organization of the training

After completing the demonstration the trainer provide feedback, both positive and or negative,

give the trainee the opportunity to do the task and describe what he is doing and why.

11. Behavior Modeling

Behavior Modeling uses the innate inclination for people to observe others to discover how to do

something new. It is more often used in combination with some other techniques.

Procedure of Behavior Modeling Technique

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In this method, some kind of process or behavior is videotaped and then is watched by the

trainees. Games and simulation section is also included because once the trainees see the

videotape, they practice the behavior through role plays or other kind of simulation techniques.

The trainee first observes the behavior modeled in the video and then reproduces the behavior on

the job.

The skills that are required to build up are defined

A brief overview of the theory is then provided to the trainers

Then, trainees are given instructions that what specific learning points or critical

behavior they have to watch

Then the expert is used to model the suitable behaviors

Then, the trainees are encouraged to practice the suitable behavior in a role play or

through any other method of simulation

Trainees are then provided with some opportunities to give reinforcement for appropriate

imitation of the model’s behavior

In the end, trainer ensures that a trainee appropriately reinforces the behavior on the

work place Behavior modeling focuses on developing behavioral and interpersonal skills.

This type of method can be used for training in

Sales training

Interviewee training

Interviewer training

Safety training

Interpersonal skills training

12. in Basket Technique

In-Basket Technique – It provides trainees with a log of written text or information and

requests, such as memos, messages, and reports, which would be handled by manger, engineer,

reporting officer, or administrator.

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Procedure of the in basket Technique

In this technique, trainee is given some information about the role to be played such as,

description, responsibilities, general context about the role.

The trainee is then given the log of materials that make up the in-basket and asked to

respond to materials within a particular time period.

After all the trainees complete in-basket, a discussion with the trainer takes place.

In this discussion the trainee describes the justification for the decisions.

The trainer then provides feedback, reinforcing decisions made suitably or encouraging

the trainee to increase alternatives for those made unsuitably.

A variation on the technique is to run multiple, simultaneous in baskets in which each trainee

receives a different but organized set of information. It is important that trainees must

communicate with each other to accumulate the entire information required to make a suitable

decision.

This technique focuses on:

Building decision making skills

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Assess and develops Knowledge, Skills and Attitudes (KSAs)

Develops of communication and interpersonal skills

Develops procedural knowledge

Develops strategic knowledge

These skills are mainly cognitive to a certain extent than behavioral.

14. Management Development Program (MDP)

Management Development has become very important in today’s competitive environment.

According to a survey, those companies that align their management development with tactical

planning are more competitive than the companies who are not. It has also been indicated that

80% of the companies report MDP, compared with 90% that provide executive leadership

training. For most of the companies 37% of the training budgets go to management development

and learning programs. Therefore, it is important to consider management development as an

important part of organizational competitiveness.

Some of the reasons behind the management development programs are:

It is managements’ responsibility of ensuring the success of the organization

It is the management who deal with people of different background, culture, language, etc

Mergers and acquisitions, downsizing, etc are all under management’s control

It is managements’ responsibility to ensure that the employees obtain the required KSAs

to perform the tasks

It is managements’ responsibility to ensure that right people is hired for the right job, at

the right time for the right place

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Manager’s job is complex i.e. for the managers understanding the training need is not

easy because his training need is determined by how well his department is meeting its

objective and goal.

It is the management who makes decisions on the basis of judgment and intuition

It is the manager who performs several routine duties as well as handling the exceptions

in their own as well as subordinates’ routine

Managers are engaged in varied, discontinues, and brief activities

It is the management that understand the organization, its vision, mission, ethics, values,

strategies, capabilities, and how his organization fits into the industry, and how his

behavior will influence people outside the organization

Overview of training methods:

Job training methods

There are many and many ways to train. In this post, we just list 14 training methods used in job

development.

1. Training by Lecture

• A lecture is a method in which he or she may use handouts, visual aids, question/answer, or

posters to support the lecture.

• Communication is primarily one-way: from the instructor to the audiences.

• Instructor can be experts, consultants, senior management…

2. Training by Presentation

• Presenter talks on a topic which requested from organization.

• Presentation usually is conducted by one or some member of organization.

• This method can include lecture method above.

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3. Coaching

• When a manager takes an active role in guiding employee we refer to this activity as coaching.

• Coaching is a forced task of all positions at management level.

4. On-the-job training

The trainee is placed on the job and the manager or instructor shows the trainee how to do the

job.

5. Self-training

• This method also called self-discovery training.

• Trainees discover the competencies on their own using such techniques as video-visual aids,

books at company library, company intranet.

6. Job rotation

• Job rotation represents an excellent method for broadening the manager or potential manager

and for turning specialist into generalists.

• It can also provide opportunities for a more comprehensive and reliable evaluation of the

manager by his or her supervisors.

7. Movies/videos/computer-based training

Content for the training experience comes primarily from a videotape program…

8. Training by Group discussion

• Group discussion is a good problem-solving approach.

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• A group considers a specific problem and they work to reach a agreement.

9. Training by Seminar

Seminars often combine several group methods: lectures, discussions…

10. Training by Projects

• Projects require the trainees to do something on the job which improves the business as well as

helps them learn about the topic of training.

• Member of a project should come from other sections.

Facilitation of Training through Organization Intervention

Failure of training is not always because of lack of KSAs but sometimes it is because of the

organizational forces also. These forces also hold back the transfer of training, and learning.

Therefore, it is important to keep in check those forces. For the successful transfer of training, it

is necessary to have supervisor support, trainer support, peer support, reward system, climate and

culture.

PEERS SUPPORT – Peer support can also help in transfer of training, for example, if the trainee

is the only one who is receiving training in the department then probably the experienced peers

might put pressure on trainee to forget the training and work. This situation also hampers in

transfer of training. However, this situation can be avoided by involving the entire department in

training,

SUPERVISOR SUPPORT – can affect their employees learning in number of ways, for example,

if the trainee is motivated to learn and receives full support from their supervisor, then this

support in turn encourages the employee to learn as much as possible. Also, supervisor can also

reduce the negative factors of training, such as, the work that piles up during training that makes

the employee uncomfortable and employees’ negative perception about the training program.

Also by encouraging the learning culture in the organization.

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TRAINER SUPPORT – can also have a positive impact on the transfer of training. Gone are

the days, when the trainers’ role used to get over once the training program is done. Trainers’

role is now extended to the work place also. Besides training, trainer’s role is to keep a check on

how trainees are performing and help them and discuss with them if they encounter any problem

in the workplace.

CLIMATE – Apart from supervisor support, peers support, trainer support, Climate factor also

comprises of company polices, attitude of upper management towards employee, towards

training. If these factors are positive then the climate will also support the transfer of training. It

is the organizations foremost duty to make the employees realize through these factors that

adequate amount of time and resources are spent on them for their professional and personal

development.

CULTURE – also have the impact over the transfer of training. If the culture of the organization

provides enough opportunities to its employees to implement what they have learnt in the

workplace and provide them variety of others factors such as, social support, challenging jobs,

etc then the likelihood of the transfer of training increases.

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REWARD SYSTEMS – If the learning outcome that helps in achieving the objectives is linked

to reward system then the probability of the success of training would increase.

Performance Mgmt. System***

Performance mgmt is a process where organization assesses the

performance of each and every employee on the basis of standard criteria according to the

hierarchy it involves numerous activities, far more than simply reviewing what an employee

has done.

Methods of performance management*

Three approaches exist for doing appraisals: employees can be appraised against:

1. Absolute standards: This means that employees are compared to a standard, and their

evaluation is independent of any other employee in a work group. This process assesses

employee job traits and behaviors.

2. Critical incident appraisal: A performance evaluation that focuses on key behaviors that

different between doing a job effectively or inefficiently. The strength of this method is that

looks at behaviors.

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3. Checklist appraisal: A performance evaluation in which rater checks off applicable

employee attributes. This method reduces some bias in the evaluation process because the

rater and the scorer are different.

4. Adjective rating scale: A performance appraisal method that lists traits and a range of

performance for each. Rating scales can be used to assess factors such as quantity and quality

of work, job knowledge, co-operation, loyalty, dependability, attendance, honesty, integrity

and initiative. To use the adjective rating scale, the assessor goes down the list of factor and

notes the point along the scale or continuum that best describes the employee.

5. Forced-choice appraisal: A performance evaluation in which the rater must choose

between two specific statements about an employee’s work behavior. The major advantage

of the forced-choice method is that because the appraiser does not know the right answers it

reduces bias and distortion.

6. Behaviorally anchored rating scales: A performance appraisal technique that generates

critical incidents and develops behavioral dimensions of performance. The evaluator

appraises behaviors rather than traits. BARS specify definite, observable and measurable job

behavior. Although it is a time consuming and lengthy process, it provides accurate

information about the employees.

7. Relative Standard methods: The most popular of the relative methods are---

i. Group order: It requires the evaluator to place employees into a particular

classification. E.g. if a rater has 20 employees, only four can be in the top fifth,

of course four also must be relegated to the bottom

ii. Fifth. This method prevents raters from inflating their evaluations so everyone

looks good.

iii. Individual ranking: This method requires the evaluator merely to list

employees in order from highest to lowest. In this process, only one employee

can be rated “best”.

iv. Paired comparison: Ranking individuals performance by counting the times, any

one individual is the preferred member when compared with all other

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employees. Certain employees will be selected from different departments and

then their performance will be compared.

Compensation*

Compensation is a part of the motivation. Also it is a term based on which salaries, benefits or

rewards are provided to the employees against their performance. Compensation is a regular and

fixed phenomenon as it provided in terms of monetary unit. Compensation package is for

reducing the difference between the employee’s views.

Types of reward**

There are three major types of rewards and each of which assist in maintaining employee

commitment.

1. Intrinsic VS extrinsic rewards: Intrinsic rewards are the personal satisfactions derived

from the job itself, such as pride in one’s work, feeling of accomplishment or being part of a

team.

Extrinsic rewards are the benefits provided by the employer, usually money, promotion or

benefits

2. Financial vs. non-financial rewards: Rewards provided by the employee in terms of

monetary value are treated as financial rewards. Financial rewards are fixed on the basis of the

employee’s positions, length of the service and mental enrichment.

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Rewards given in terms of non-monetary value are treated as non-financial rewards. It may not

be fixed as org’s have their own rules and regulation. Eg. Business cards own secretary,

impressive title.

3. Performance based and membership based rewards: Performance based rewards are the

rewards exemplified by the use of commissions, piece work pay plans, incentive systems, group

bonuses or other forms of merit pay.

Membership-based reward include cost of living increases, benefits and salary increases

attributable to labor- market conditions time-in rank, credential and a specialized skills.

Source: * and ** Garry Dessler—HR practices 2004

Job evaluation*

By job evaluation, we mean using job analysis information to systematically determine the value

of each job in relation to all jobs within the organization. In short to all jobs in the organization

in a hierarchy that reflects the relative worth of each. This a ranking of jobs, not people. The

ranking should be used to determine the organizations’ pay structure.

Job evaluation methods

For determining pay structure, three basic methods of job evaluation are currently in use:

1. Ordering Method:

The ordering method requires a committee typically composed of both

management and employee representatives to arrange jobs in a simple rank order from highest to

lowest. The committee members merely compare two—jobs and judge which one is more

difficult to perform or which one is more important.

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2. Classification Method:

Evaluating jobs based on predetermined job grades. These classification

grades are created by identifying some common denominator skills, knowledge and

responsibilities to create distinct classes or grades of jobs.

3. Point method:

Breaking down jobs based on identifiable criteria skill, effort and

responsibility and the degree to which these criteria exist on the job. Appropriate weights are

given, points are summed and jobs with similar point totals are placed in similar pay grades.

Story’s dimensions of personnel and Human Resource Management

Content Personnel management HRM

Beliefs and assumptions

1. Contract Careful deliration of written

contracts

Aim to go beyond contract

2.Rules Importance of devising clear

rules/mutuality

Can-do-outlook; impatience

with rule.

3.Guide to management Procedures. Business-need.

4.Behavior referent Norms/custom and practice Values/mission.

5.Managerial task vis a vis

labor

Monitoring Nurturing.

6.Nature of relations Pluralist Unitarist.

7.conflict Institutionalized De-emphasized

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Strategic Aspects

8.Key relations Labor-management Customer.

9. Initiatives Piecemeal Integrated

10. Corporate plan Marginal to Central to

11.speed of decision Slow Fast

Line Management

12. Management role Transactional Transformational leadership

13. key mangers Personnel or IR specialists General or business or line

managers.

14. Communication Indirect Direct

15. Standardization High Low

16. Selection Separate marginal task Integrated key task

Key Levers

17. Pay Job evaluation Performance related

List of figures:

In this thesis paper I have used these diagrams that are given below:

Figure: HRM Model

Facilitation of Training through Organization Intervention

Procedure of the in basket Technique

Role Plays

Business Games Training

Benefits of Computer based training

System Model

Instructional System Development Model

Transitional model

Recruitment Process

Training and development objectives

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Organizational Hierarchy

Sources of Recruitment

Chapter 4

Conceptual framework:

In general terms, the business activity of accepting and safeguarding money owned by other individuals

and entities, and then lending out this money in order to earn a profit is termed as banking.

The Banking (Special Provisions) Act 2008 (c.2) is an Act of the Parliament of the United Kingdom that

entered into force on the 21 February 2008 in order to enable the UK government to nationalize high-

street banks under emergency circumstances by secondary legislation.

Torrington and Hall (1987) define personnel management as being: “a series of activities which: first

enable working people and their employing organizations to agree about the objectives and nature of their

working relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).

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While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the

management of employees at all levels in the business and which are related to the implementation of

strategies directed towards creating and sustaining competitive advantage" (p. 352).

Miller, (1989).The goal of human resource management is to help an organization to meet strategic goals

by attracting, and maintaining employees and also to manage them effectively. The key word here

perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's

employees, and the overall strategic direction of the company.

Cornell University's School of Industrial and Labor Relations was the world's first school for college-

level study in HRM. The sort of careers available in HRM is varied. There are generalist HRM jobs such

as human resource assistant. There are careers involved with employment, recruitment and placement and

these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists or college

recruiters. Training and development specialism is often conducted by trainers and orientation specialists.

Compensation and benefits tasks are handled by compensation analysts, salary administrators, and

benefits administrators.

.

Chapter 5

Findings and Analysis

Business strategy and corporate of the organization:

AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st

December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from

April 12, 1982.

During the last 27 years, AB Bank Limited has opened 78 Branches in different Business Centers

of the country, one foreign Branch in Mumbai, India and also established a wholly owned

Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited.

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To facilitate cross border trade and payment related services, the Bank has correspondent

relationship with over 220 international banks of repute across 58 countries of the World.

There bank is totally goal oriented. They work towards being a leader in innovative policies. But the

greater challenge is to study the progress and impediments on our way to business success. They can

improve and improvise and it is a continuous process. They also invest in training, resource mobilization

and maximization of resource utilization. They believe that HR strategy must be measured by results. HR

strategy must also recognize the dynamics of the external environment.

Competitive advantage:

According to their study, it is speed, efficiency and investment in capital market which in turn keeps them

highly motivated and work oriented.

Relating corporate level strategy with business level strategy:

While there organization keeps on following the set of corporate strategy, it constantly follows the

developments in the given business sectors and immediately adopts and adapts required changes at the

business level. This requires coordinated efforts, but it is a constant struggle. They believe that the

company that improvises with the changing environment is best suited to stay vibrant, profitable and

competent. A well suited strategy guided by good HR practices and sound management decision making

is prudent in staying ahead.

Distinctive capability:

They are still formulating good business and employee welfare practices. For instances, we want to

employ as many physically challenged persons as possible. They have also provided equal opportunity

and pay for our female workers as their male colleagues.

Relationship between business strategy and HR practice in the organization:

Human Resource in AB Bank ltd. represents investment in human capital. Whatever may be the size of

the organization, it is its employees that provide firm with the strategic advantage. There firm believes

that HR practices may not always take place due to having better resources but making better use of those

resources. This means the company has to make maximum use of its resources by achieving higher

productivity per worker and by matching the capabilities of employees with the strategy.

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Strategic model used by the organization:

They use both the Industrial/ Organizational and RBV model in a combined manner. There strategic

model is a mix of Industrial /Organization model and Resource based view. In the changing scenario, they

have to keep themselves abreast of all production, and delivery systems.

Types of linkage they have:

a. Administrative linkage…. No

b. One-way linkage… No

c. Two-way linkage… Yes

d. Integrative linkage… Mostly

Communication system between HR departments with other departments:

They prefer networking and communications through built in computer connectivity or we can say e-hr.

An in house bulletin is also published. There HR people have by rotation meetings with all departments.

Type of HRM system they maintain:

Traditional HRM: - Not generally, but in a limited way.

Strategic HRM: - Undoubtedly; this has elements of dynamism and also some flexibility.

External environment analysis:

They are constantly monitoring external environment. For that they not only analyze their own output

data but they also have a separate desk to follow and monitor all external developments relating to all

their business sectors by following the media and also through networking with other similar companies.

Problem of HR policies and suggested solution:

Generally most of their workers usually do not accept changes. Given the track record of their company

of being fair in implementing management, HR and pay policies, their employees feel that any shift of

their work pattern or place is meant to suit them better than before. Moreover they know that they will

receive both guidance and training for suiting them in their new environment. On the whole, the

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employees feel that it is them whom the company work for and it them who work for the company. They

see a win, win situation. However, such an environment has taken investment of time, fair policy

practices and emulation of seniors and peers leading by example.

We never implement absolutely new strategy if we think our managers and staff have not been suitably

trained or selected for the new mission.

Recruitments of Candidates:

Recruiting is the common feature of any organization. The HRD of an organization strongly

handled this process. The HRD of AB bank ltd. complete recruiting process with some policies.

The AB bank ltd. bears a proper recruitment model plan. This model is so much specific and

clear. They also updated recruitment model in case of necessity. The AB Bank ltd. Follow

strategic decision regarding planning of the organization which is based on supply and demand

ratio. For recruiting they sometime hire experts/consultants/psychologists to choice better

candidates. The AB bank also have own experts that is much important rendering services of

banks. Recruitment planning options that AB bank ltd follow external agency. AB bank ltd

selected candidates through some recruitment procedure are advertisements, written tests, short

listing and personal interview. On the recruitment criteria’s considered in recommendation as per

priority qualification and age for junior level where experience for mid level and special

achievement for senior level. AB bank bank strongly considered age group where needed below

30 years for junior level, 30 to 45 years for middle level and 45-60 years for senior level. Within

45 days AB bank recruiting new candidates when needed. For internal recruitment, they

reference from the existing employee. AB bank recruited candidates mostly basis on educational

factors. AB bank has no specific indicator for percentage of vacancies for economically

backward class candidate.

Sometimes political pressure also impact on recruitment but the candidates must be well

educated while candidate recruiting AB bank make ranking as consistent performer, Rank

holder, all rounder and then ranking of an institution. When AB bank wants to recruit HR people,

It is taken within the organization sometimes AB bank recruited employee based on campus

recruitment and it make a rank on qualities which are leadership, Creative thinking,

Understanding, Cooperation, Hard working, pleasant mode and last one is maturity. Ab bank has

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a promotion model and if basically depends on some chronological criterion –such as

performance, efficiency, experience, skills, knowledge, ability to cope up with environment,

understanding ability, and nature of work and also sometimes it depends on organization

promotion policy. The rule of promotion is based on performance. When the vacancy is not filled

for longer period the steps taken by AB bank is internal sourcing or external source or reduction

of posts. When expertise needed or seen staff lacking, then they follow transfer policy. AB bank

sometimes follows bond system to recruit candidates but it depends on situation. AB bank selects

or maintain recruitment budget by advertising, expert cost, recruiting cost which includes written

tests, interview, and training. Sometimes for the project, AB bank takes employee on contractual

basis and it given the same priority for both contractual and local employees.

Chapter 6

Recommendations

They never implement absolutely new strategy if they think their managers and staff have not been

suitably trained or selected for the new mission. Even if they try to employ some new policies they take

the following solutions:

1. Initiate a gradual process to implement the policy

2. Persuade the employees with the benefits of employing a particular policy

3. Provide necessary training

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4. Inform the employees through general meeting or organizing a seminar

5. Motivate employees with modified reward systems for the change that is going to take place

6. Counseling for the individual employee.

7. Employees of all departments should be positive in terms of allowing bonus in several times.

8. Experienced and motivated entrepreneur should be allowed for sanctioning the loan.

9. It should uses greater pay scale, efficiency people to reduce absenteeism.

10. It should use jab analysis, jab description and job specification in exchange of annual

confidential report (ACR) like other banks.

If they really try to implement a particular policy in the organization, then they need to go through

change process that has three distinct stages:

Unfreezing- at this stage a sense that change is needed must be developed

Changing- organizational change is implemented

Re-freezing- the new order is institutionalized, presenting the new equilibrium.

Conclusion

The AB Bank Ltd is a first growing third generation bank with setting a new standard in banking

sector. The management team of the bank consists of well-educated, highly skilled and dynamic

executives who have been contributing in the continued growth and progress of the bank.

In a large organization like bank HR department plays a key role in designing and monitoring of

human resource system. In most organizations, the human resource department plays a major

role in wage and salary administration. The HR department is likely to develop the job evolution

system, perhaps with the help of an outside consultant and will coordinate and manage the

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system. As a rule, the HR department conducts surveys of wages and salaries or participates in

surveys the department uses in revising the pay structure. Once top management has approved

modification of the overall pay structure, the HR department monitors compliance with that

structure and with the rules that have been established.

The HR department of AB Bank Ltd plays a vital role in retaining its employee’s performance

and mental piece. HR department of the bank already has established a competitive salary and

compensation structure as well as other employee benefits.

Appendix 1

Bibliography

Books:

a) DeCenzo D.A. and Robbins S.P., “HUMAN RESOURCE MANAGEMENT”,

7TH Ed. 2003, John Wiley & Sons (ASIA) Pvt. Ltd.

B) Dessler Gary, “Human Resource Management”, 10th Ed. 2005,

Prentice – Hall of India Private Limited, New Delhi- 110001

C) Fisher C.D., Schoenfeild L.F., and Shaw J.B., “ Human Resource Management”,

5th Ed. 2004, biztantra, New Delhi 110002.

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d) French Wendell L., “Human Resource Management”, 3rd Ed. 1997,

Houghton Mifflin Company, U.S.A.

e) Mello A. Jeffrey (2006). Strategic Human Resource Management (2nd edition)

f) C.R.Kothari. Research Methodology, 2'd edition. New Delhi: Wishwa

Prakashan, 2003-2004.

Website:

g) ABBL,” Annual Report”.

h) www.cipd.co.uk/NR/rdonlyres/...EF5C.../SHRM_Chapter_01.doc

i) http://www.abbank.com.bd/

j) http://en.wikipedia.org/wiki/Human_resource_management

Journals:

k) Stamford University Bangladesh, Journal of Business Studies 2003, Val.

l) Bagozzi, R.P., Yi, Y. (1988).On the evaluation of structural equation models.

Journal of the Academy of Marketing Science, 16, 74-94.

Appendix 2

Questionnaire:1. Type of organization------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Organization chart of HR department with major sub divisions--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. How often do you interact with the internal customers (departmental heads)?

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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4. How often does the HR department is involved in the organization’s strategic decision regarding organization?

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5. What are the communication channels used in communicating to-

COMMUNICATION MEANS

JUNIOR LEVEL(Officers, Sr. officers,

Executives)

MIDDLE LEVEL(Deputy managers,

Asst. managers, Managers, Sr.

Managers)

SENIOR LEVEL(Deputy General

Manager, General Manager)

Written

Oral/ telephone

Reports

Notices

Emails

Fax

Meetings

QUESTIONS RELATED TO PLANNING RECRUITMENT OF CANDIDATES

1. Do you have a proper recruitment model plan? If yes, please attach the model used and explain? Yes/ No------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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2. Strategic decision making of the organization regarding planning of the organization is based on-

a) Future projectsb) Career and development of peoplec) Diversification d) Expansion e) Retrenchmentf) Supply and demand ratio

3. In the interview panel, do you have experts like psychologists/ consultants as a part of it? Please explain? Yes/ No------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4. Recruitment planning options-

a) Direct through companyb) Through recommendationc) External agency

5. Recruitment procedure followed by company

a) Advertisements/ short listing/ personal interviewb) Advertisements/Written test/ short listing/ personal interviewc) Advertisements/Written test/ Group discussion/short listing/ personal interview d) Advertisements/Personal interviewe) If any other procedure is followed, please explain---------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------6. Recruitment criteria’s considered in recommendation as per priority (please rank them accordingly)

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PRIORITIES JUNIOR LEVEL(Officers, Sr. officers,

Executives)

MIDDLE LEVEL(Deputy managers,

Asst. managers, Managers, Sr.

Managers)

SENIOR LEVEL(Deputy General

Manager, General Manager, VP’s)

Qualifications

Experience

Special achievement

Age

7. The minimum age group preferred most while recruiting-

JUNIOR LEVEL MIDDLE LEVEL SENIOR LEVEL

AGE GROUP

8. Average time spent behind recruiting new candidate. --------day/s

9. Has Market have an impact on recruitment of new candidate? Yes/ No Please explain?-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------10. Procedure of internal recruitment is ------- same procedure / different procedure------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11. According to you, who of the following factor you; consider the most while recruiting a candidate-

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a) Social factors (like State, language, race, religion etc)b) Economical factors c) Political factorsd) Educational factors (like qualifications, institute etc)

12. Do you have any percentage of vacancies for economically backward class candidate? Yes/ No If yes, please mention the percentage------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13. How do you handle recruitment under political pressure?

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14. While recruiting a candidate, criteria’s for selection are (please rank them)-

CRITERIA’S TECHNICALNON TECHNICAL

Commercial

Personality

Knowledge of content

Clarity of speech

General awareness

15. Preference is given to the candidate while recruiting (please rank them)-

CRITERIA’S RANKINGRanking of an institute

Rank holder

Consistent performer

All rounder

16. How do you recruit HR people in the organization?

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a) Through external b) Within the organizationc) Within the group (internal transfer)d) Person having interest in the field, but having no professional qualification

17. During campus recruitment, what qualities do you wish to find out during Group Discussion (please rank them)

CRITERIA’S RANKINGLeadership

Cooperation

Pleasant mood

Hardworking

Creative thinking

Maturity

Understanding

18. Do you have a promotion model? Yes/ no

Please explain your answer-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

19. Rule of promotion is based on-

a) Time scaleb) Based on performance

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20. What actions are proposed if vacancy is not filled for a longer period? Please mention the major steps taken-

-------------------------------- -------------------------------- -------------------------------- -------------------------------- -------------------------------- --------------------------------

21. Criteria’s for transfer of an employee -

a) Lack of staffb) Need of expertisec) External pressured) Promotione) Retrenchmentf) Others, if any

22. Do the organization follow Bond System? Yes/ No If yes, then what is the minimum bond period adopted--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23. Do you prepare recruitment budget? Yes/No If yes, what are the things that is being considered both for short term & long term planning-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24. What is the overall recruitment cost? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25. What is the cost of recruiting 1 employee? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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26. Employee Requisition Form (ERF) is used or not? Yes/ No---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27. Percentage of employment given during project period-

a) Permanent role------------------------------------------------------------------------------b) Contractual employee (for a time frame of 1 year)-------------------------------------c) Contractual employee (project

based)----------------------------------------------------d) Local category-------------------------------------------------------------------------------

28. Do contractual/ local employees have similar facilities/ benefits as applicable to permanent employees? Yes/ No------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29. Is there the policy of retaking the employee who has left the company earlier and wishes to join back? Yes/ No

Please explain your answer-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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TERMINATION/ RESIGNATION

1. Do you face the problem of retrenchment? Yes/ No

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Do you follow hire & fire policy? Yes/ No

Please Explain --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. What is the ground for retrenchment of people?

a) Insufficient workingb) Employee separation schemec) Inefficiency/ poor performance of an employeed) Closing of department/ projecte) Misconduct/ Integrity

4. Why do people leave?

a) Better opportunityb) Moving towards hometownc) Going for higher studiesd) Going for different assignmente) Family problems

5. Formalities/ certificates to be taken when an employee resigns-

a) Clearance certificate from the departmentb) No due certificatec) Exit interview

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d) Handing over procedure

6. What is the notice period given by an employee?

a) 6 monthsb) 3 monthsc) 2 monthsd) 1 month

7. During probation period, the employee has to give a notice period of-

a) 1 dayb) 1 monthc) No notice period/ immediate

RE-RECRUITMENT

1. If an employee leaves within 1 month from the date of joining, do you follow the entire recruitment procedure again? Yes/ No------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Reasons for re-recruitment procedure

a) None availability of suitable candidateb) Acceptance problems by the candidatec) Constraints in negotiationsd) Less flexibility

3. What is the procedure time for interview process?-------------------------------------------

4. How do you store the CV’s? ---------------------------------------------------------------------

5. Do you have any software for reviewing the CV’s? Yes/ No

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Please give a little brief about it--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

QUESTIONS ON INFORMATION SYSTEM

1. DO you have Human resource information system? Yes/ No

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2. Software used to store the data’s of your employees

a) SAPb) ORACLE - HRc) People Softd) Own ERP

Others----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. How effectively the HRIS data’s are used

a) Satisfactoryb) Not satisfactoryc) Giving more informationd) Not useful

4. The HRIS data’s are generated on a-

a) Weekly basisb) Fortnightly basis

5. updating of employee data’s are done –a) Daily b) Fortnightlyc) Monthly

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6. Methodology of collecting information & communicating to employees in the organization are through –

a) Conferenceb) Workshopsc) Seminarsd) Company Magazine

7. Investment spent on HRIS-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8. Is this investment effective? Yes/ No Please explain your answer--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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