MGT 351_Final

BRAC Bank Recruting & Selection Process

Course: MGT 351 HUMAN RESOURCE MANAGEMENT

Recruiting & Selection of BRAC Bank Ltd

Prepared By:

Prepared For:

Khan Asif ImranI.D # 042 306 530

________________Signature

Md. Mujibul Hoq (MJB)Faculty, School of Business North South University Bashundhara R/A, Dhaka.

M Shakil AlamI.D # 073 089 030

________________Signature

MGT 351 (Section 6) Spring 2011 SemesterPage

Date of Submission: April 10, 2011MGT 351 (Sec. 6) Group 12

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Table of Contents

ContentsIntroduction to the Report Organizational Overview of BRAC Bank Ltd Products & Services of BRAC Bank Ltd Management Aspect of BRAC Bank Ltd Types of Employees BRAC Bank Ltd Departments of BRAC Bank Ltd Human Resource Division (HRD) of BRAC Bank Ltd Glimpse of Theory on Recruiting Recruiting at BRAC Bank Ltd Employee Selection at BRAC Bank Ltd Conclusion Reference

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MGT 351 (Sec. 6) Group 12

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Introduction to the Report: Human Resources are essential and foundational to the growth and development of any organization and hence the ability to satisfy and retain quality and trained employee is vital.Human Resources are essential and foundational to the growth and development of any organization and hence the ability to satisfy and retain quality and trained employee is vital. It must be therefore very crucial to identify if there is an underlying dissatisfaction amongst the existing employees of the organization.

This report will give a clear idea about Human Resources Department in the BRAC Bank Ltd

and more specifically how the organization recruit and select the man power, as a means of comparing the typical theories of Human Resource Management on Recruiting and Selection with that of the real life practices by renowned organizations like BRAC Bank Ltd here in Bangladesh.


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Organizational Overview of BRAC Bank LimitedBRAC Bank Limited is a full service scheduled commercial bank. It has both local and International Institutional shareholder. The bank is primarily driven with a view of creating opportunities and pursuing market niches not traditionally meet by conventional banks. BRAC Bank has been motivated to provide best-in-the-class services to its diverse assortment of customers spread across the country under an on-line banking dais.

BRAC Bank Limited, one of the latest generation of commercial banks started its journey on July 04, 2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of the worlds largest non-governmental development organizations founded by Sir Fazle Hasan Abed in 1972. It has been the fastest growing Bank in the last couple of years. The Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.

As a fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 2200 crores in loans to nearly 50,000 small and medium entrepreneurs. The management of the bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Till December 2010 the number of employees including contractual engaged for the whole year or part there of year was 8,305.

Apart from BRAC, BRAC Bank Ltd has important international shareholdings, which includes IFC and ShoreCap. y International Finance Corporation:

International Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas representatives, IFC helps local financial institutions find profitable ways to target small and medium sized companies. Funding comes from the Asian Development Bank,Page


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Canada, the European Commission, the Netherlands, Norway, the United Kingdom and IFC itself. IFC is a 9.5% shareholder in BBL.

y

Shore Cap International Ltd

The other international institutional investor is Shore Cap International Ltd. It is an international private non-profit, equity company seeking to invest in small business banks and regulated micro finance institutions in countries with developing and transitional economies. Shore Cap typically invests between $500,000 and $2 million for an ownership position of 10-25% of a company. As a minority shareholder, Shore Cap seeks financial institutions with a strong, experienced management team and a committed set of local development-minded investors. Shore Cap currently owns 8.75% of BBLs shareholdings.

Shareholding structure of BRAC Bank Ltd:


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Products & Services Offered by BRAC Bank LimitedBRAC Bank Ltd is currently focusing on 4 (four) different areas of business activities. These are: 1. SME Banking a) Anonno Rin h) i) j) k) l)

Prothoma Rin BIZNESS Account Cash Secured LoanBIZNESS Loan Trade Plus

b) Apurbo Rin c)

Pathshala Rin

d) Aroggo Rin e) f)

Digoon Rin Supplier Finance

m) Super Supply Loan

g) Proshar 2. Retail Banking

a.

Loan Productsi) ii) Salary Loan vii)

Credit Card Loan

NoW Loan

viii) Top Up Loan ix) x) xi)

iii) Car Loan iv) Teachers Loan v)

High Flyer Loan Secured Loan / ODDoctors Loan

Study Loan

vi) Travel Loan

b.

Deposit Productsi) ii) Fixed Deposit Interest First vii) Savings Account viii) Short Term Deposit ix) x) xi) Current Account Salary Account Step Up Fixed Deposit

iii) Abiram Account iv) DPS v) c. EZee Account

Cardsii) Co-Branded CardsPage


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i)

ATM Debit Cards


3. Corporate Banking a.

Corporate Loan Productsi) ii) Overdraft Term Loan iv) Lease Finance v) Work Order Finance

iii) Loan Against Trust Receipt (LATR)

vi) Medium Enterprise

b.

Trade Financingi) ii) Letter of Credit (LC) Letter of Guarantee (LG)

c.

Corporate Cash Managementi) ii) NCS PTS

4. Probashi Banking a) b) c) d) e) f) Probashi Current Account Probashi Savings Account Probashi DPS Probashi Fixed Deposit Probashi Abiram Probashi Shubidha (NRB Beneficiary) Account


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Management Aspect of BRAC Bank LimitedLike any other business organization, the Top management makes all the major decisions at BRAC Bank Limited. The Board of directors being at the highest level of organizational structure plays an important role on the policy formulation. The Board of directors is not directly concerned with the day-to-day operation of bank. They have delegated their authority to its management committee, which is called MANCOM. Now there are 5 directors in the Top management of the bank. All the directors have good academic background and have huge experience in business. Sir Fazle Hasan Abed is the chairman of this bank.

Management Hierarchy of BRAC Bank:

Chairman Board of Directors Managing Director & CEO Deputy Managing Director Executive Vice President Senior Vice President Vice President Senior Assistant Vice President First Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Senior Officer Officer Grade II Officer Grade I Executive (Temporary Contractual Job)


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Types of Employees at BRAC Bank LimitedBRAC Bank has 4 different types of employee criteria which include:

1. Regular/ Full time Employee: In full time category, employees are joined as probationary for six months or one year depending on job category. They have to sign a deed for three years a long with depositing taka one lac refundable. The regular employees are allowed to get the bonus, incentives and other allowances with their basic salaries. They can also enjoy the extra benefits and facilities that BRAC Bank limited is providing for their employees. 2. HR Contractual: Contractual employees are taken for specific period like six months basis. Along with main salary, they get attractive performance bonus if they achieve targets determined by organization. HR temporary contract is for those categories of jobs where the employee needs to be under the direct supervision of Banks authority, and the individual performance is monitored by the Bank Management. Staff under HR contract might be specialist, consultant, and specially assigned staff, who directly or indirectly deals with customers, has access to Banks confidential data & valuable properties (car, etc.), deals with sensitive areas, and also deals with customer as a representative of BRAC Bank directly. 3. Outsource Staff: Other contractual employees are not entitled for any service agreement. They will be recruited through outsource agencies. The requirement of any support staff through outsource agency must come through HR signed by the Division Head. HR will send the requirement to provide staff by the Outsource Agency. Outsource Staff recruitment depends on the budgeted requisition of the staff from the respective departments. However, for non-budgeted requisition it will go through after the approval process of MANCOM. The bank reserves the right to terminate the contract with the Outsource Agency without assigning the reason whatsoever. The Outsource Staffs salaries are fixed and they wont get any allowances with their salary.Page


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4. Management Trainee Officer (MTO): Management Trainee Officers are usually highly qualified students of BRAC Bank Limited. The MTOs are regular employee but they have to learn as a student inside BRAB Bank for the period of one year during which every MTO gets attached with all the departments of the organization by rotation in order to get the clear understanding of the operations practices of each department. After the end of one year probational period, on full successful completion of all the provisional attachments, the MTO gets full time permanent job offer and is directly appointed in the position of Senior Officer (S.O).

Departments of BRAC Bank LimitedMGT 351 (Sec. 6) Group 12

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BRAC Bank has altogether 26 departments under the following three major criteria:

A. BUSINESS B. SUPPORT C. OPERATIONS A. BUSINESS1. SME Banking 2. Retail Banking Retail Distribution NFB and Secured Assets ADC Unsecured Assets Liability Service Quality / Business Intelligence Collections Selling Regional Distribution

3. Corporate Banking 4. Probashi Banking International Distribution 5. Cards 6. Treasury & Financial Institution 7. Marketing & Corporate Affairs

B. SUPPORT8. 9. Company Secretariat Enterprise Risk Management 12. Financial Administration 13. Impaired Assets Management 14. Complaint Handling Cell 15. Credit Inspection

10. Credit 11. Human Resource Division

C. OPERATIONS16. Retail Banking Operations 17. SME Banking Operations 18. Wholesale Banking Operations 19. Probashi Banking Operations 20. Card Operations 21. Business SolutionsPage

22. Technology 23. General Infrastructure Services 24. Central Operations 25. Call Center 26. PSO & MIS


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Human Resources Division (HRD) of BRAC Bank LimitedHaving a Human Resources Department in Bangladeshi business organizations today is becoming a common and important part. But Human Resource Management is a relatively new discipline to study and implement in this part of Asia and in most organizations HR Department work as a Support department to the organization.

As mentioned earlier, in BRAC Bank Ltd. Human Resource Division works as a Support department to the organization. BRAC Bank has a rich Human Resource Department. It maintains the organizational responsibilities successfully. The HR team of BRAC Bank is completely organized and well reputed team. The HRD is furthermore classified into 5 different wings such as: Recruitment Learning & Organization Development (Training) Compensation, Pay and Benefits HR Administration MIS & Strategic Planning All the senior managers of these wings reports to the Head of HR, Ms. Tahniyat Ahmed Karim who is also one of the Senior Vice Presidents and member of the Management Committee (MANCOM) of BRAC Bank Ltd.

Functions of the HRD Though there is a big difference between text books and real workplace scenario, BRAC Bank HRDs functions does not differ much. According the HR discipline, they too have a recruitment division, training & development division, compensation & benefits planning division and there are performance measurement methods and rewards for good performance as a motivational drive in BRAC Bank HRDs policy. The HR Administration division and MIS & Strategic Planning division are out of the ordinary HR theory.

Glimpse of the theory on RecruitingMGT 351 (Sec. 6) Group 12

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Defining RECRUITING: Successful employment planning is designed to identify and organizations human rewource needs. Once these needs are known, an organization will want to meet them. The next step is staffing, then- assuming, of course, that demand for certain skills, knowledge, and abilities is greater than the current supply- is recruiting. The company must acquire the people necessary to ensure the continued operation of the organization. Recruiting is the process of discovering potential candidates for actual or anticipated organizational vacancies. Or, from another perspective, it is a kinking activity that brings together those with jobs to fill and those seeking jobs.

RECRUITING Goals: An effective recruiting process requires a significant pool of candidates to choose from- and the more diversity within that group the better. Achieving a satisfactory pool of candidates, however, it may not be easy, especially is a tight labor market. The first goal of recruiting, then, is to communicate the position is such a way that job seekers respond. Why? The more applications received, the better the recruiters chances for finding an individual who is best suited to the job requirements. Simultaneously, however, the recruiter must provide enough information about the job that unqualified applicants can select themselves out of job candidacy.

Recruiting at BRAC Bank LimitedMGT 351 (Sec. 6) Group 12

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The recruitment wing of BRAC Bank is responsible for collection of CVs, Job Applications for vacant posts, Internship Applications etc. The recruitment officers collect and store these hard copies and also updates, maintains computer databases regularly. The recruitment officers task is to organize CVs for potential candidates so that in time of recruitment they can be found and short listed within a reasonable time. After the short listing of CVs, short listed candidates are contacted (usually by telephone) for interviews. In case of large number of candidates, letters are mailed to the applicants mailing address. These are done according to the interview schedule made before contacting the candidates. The interview or written test schedule is made prior to contacting with the short listed candidates by communicating with respective departments who submitted requisition for the needed workforce. Steps involved in the recruiting process are as follows:

1. A properly filled-out Staff-Requisition Form is submitted by the concerned Department Head or Manager submitted to the Recruitment department. 2. The Requisition should be supported by the Manpower Budget for the year; otherwise, a Non-Budgeted Requisition must be signed and approved by the Managing Director upon stating valid reason for the recruitment. 3. Determining the type of recruitment needed the next step is to identify the source of CVs for the vacant post(s). For a Full-Time/Regular post an Internal Job Watch must be circulated with details of the post throughout the bank using Lotus Mail. External CVs are also accepted for a post offered through mail but in these cases, internal source is preferred by the concerned department as some posts require existing, experienced employees within the bank. For example, a Regular post open in Unsecured Value Center usually prefers an HR Contract working in Unsecured Value Center for past two years with satisfactory performance. 4. For external CVs the Recruitment wing looks into the archive of applied CVs suitable for the post and in case of recruitments like M.T.O, advertisements are published in highly circulated daily newspapers such as Prothom Alo and The Daily Star.Page


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5. On the day an Internal Job Watch closes or a Paper Ad reaches deadline for CV submission, the Recruitment wing checks all the CVs as an initial screening and then sends the CVs for final short listing to the concerned departments who submitted requisition. The finally selected applications are then called for an interview after setting an interview date and venue. Recruiting Sources: a) INTERNAL Promotion from within concept b) EXTERNAL Newspaper Advertisement (in case of large recruitment like M.T.O and for upper level

management posts) Job Campaign organized at Universities, and Job Fairs Professional Organizations Unsolicited Applications Cyberspace Recruiting

Guideline Regarding Internal Job Application: For internal job posting any regular employee can only apply if s/he has the service time in BRAC Bank of more than two years and his/her application should be accompanied by the recommendation of the reporting supervisor and the applicant should must have a minimum performance rating P (for Proficient) . The regular employee should also have completed 8 mandatory E-Learning courses. The HR Contract employee can apply for the regular post after servicing for more than two years in BRAC Bank. Outsource Staff can apply for the regular post after servicing for more than three years in the organization.

Employee Selection at BRAC Bank LimitedMGT 351 (Sec. 6) Group 12

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The interview board is comprised of respective Department Heads accompanied by the Head of HR. sometimes cross department heads also join the board. After the interview is over the Interview Score Sheet of the candidates interviewed is printed and handed to Interview Board. The filled out Interview Score Sheets are then used to list the finally selected candidates for the respective posts. According to the Score Sheets, the HRD issues Offer Letters/Appointment Letters to the finally selected candidates and requests them to collect their Letters from the HRD. The new employees are then greeted to finish all the official formalities (e.g. Bond Signing, PIN number assignment etc.) and assign a joining date in their respective departments. Written tests are only arranged when necessary, usually in case of large number of applicants. Before a recruitment process is completely finished, the recruitment officers must communicate with the Learning & Organization Development officers so that they can arrange orientation or initial training sessions for the newly recruited employees on time. This is done frequently because most of the time the posts getting filled up require an initial training or orientation.

The Selection Policy:All regular employees will be appointed by the Managing Director. All HR Contract and Outsource Contract employees will be appointed by The Head of Human Resource Division. The interview board will be comprised with the Head of Department of that post, the Supporting Department Head and the Head of HRD. Officer Grade I and Officer II get appointed directly after the interview. From Senior Officer and above there will be a second interview with the Managing Director of BRAC Bank Limited after the first interview. The newly appointed employee will get the probationary period of one year if the employee has less than three years of working experience and will get the probationary period of six months if he has more than three years working experience.


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The Selection Process:

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Job Application

For the position of MTO

Initial Screening

for higher positions

Initial Interview

Employment Test

Written Test

Interview

Interview

Presentation

2nd Interview(only for positions of Senior Officer and above)

Final Interview

Conditional Job Offer(Probationary Period**)

Conditional Job Offer(if applicable)

Permanent Job Offerfor Management Trainee Officers (MTO): Conditional Job offer period is 1 year. At the early stage of this 1 year the MTO has to go through in-house preliminary training sessions. After training attachment with SME Unit Offices & Branches Organization of Development Program Attachment with different departments


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**The terms of probation are as follows:

A person selected for appointment with less than 3 years job experience will be on probation period of one year. An employee with job experience of 3 years or more will be on probation for 6 months. In the event of the probationers failure to show satisfactory progress and acquire required efficiency during employees probationary period, the appointing authority may, at its discretion, extend his probationary period by a maximum of additional 6 (six) months, or dispense with his service by giving one months notice or by paying a sum equal to one months pay without assigning any reason. An officer shall become eligible for confirmation in the specified post subject to employees successful completion of the period of probation.

In the case of one year, if the person fails to show satisfactory progress, employees appointment will be terminated. The confirmation of service of all officers and employees in the services of the Bank shall take effect on and from the date as will be specified in the order of confirmation. After the probationary period of six months or one year the administration send the appraisal form to the Department Heads. After completing the appraisal form send the form to the administration. In the procedure the HRD head send this appraisal form with his approval signature to the Deputy Managing Director of BRAC Bank Limited to approve and forward it Managing Director of BRAC Bank Limited and after that it will be approved signed by the Managing Director. According to the comment and remark of appraisal form the employee will get the confirmation with increment of salary or confirmation with promotion or no confirmation.


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CONCLUSIONBRAC Bank Limited is the fastest growing Bank in Bangladesh. It intends to set standards as the market leader in Bangladesh. It demonstrates that a locally owned institution can provide efficient, friendly and modern banking service on a profitable basis. Human Resource Department is the most confidential department for any organization and it is the same for BRAC Bank as well. BRAC Bank Limited is a bank that confirms the best service to the customers as well as to the employees by having appropriate latest knowledge based Human Resource Division.


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ReferenceBRAC Bank Annual Report 2010 Official website of BRAC Bank http://www.bracbank.com/

Mr. Zarif Nadim AhmedCustomer Relations Manager BRAC Bank Ltd Shyamoli Branch Dhaka.


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Documents

MGT 351_Final