HRM in BRAC BANK

Introduction
Theory Introduction
Human Resource Management The focus of human resource management (HRM) is to manage people within the employer-employee relationship (Stone, 1998). It is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business (Armstrong, 2006). Recruitment and Selection of employees are the most important tasks that HRM does. Recruitment is the process of attracting a pool of suitable applicants for a vacant position and Selection is the process of choosing the best person for the job from the pool of applicant (Dessler et. al.2004). There are many types of techniques from where the process of recruitment and selection process can be done. In the current scenario, organizations operate in a very competitive global environment. The knowledge of all aspects of management is not only important but also very essential. One of the important areas of operation in management is Human Resource Management. Human Resources Management has mainly three functions, acquiring human resources, maintaining them, and developing them. HRM is resource centered which directs human resources and represents appropriate culture and climate for the employees in the organizations. Out of all assets in an organization, Human Resource is the most important and dominant which give companies edge over others. Thus, organizational management is buying commitment of employees by successfully implementing motivation policies and principles (Graham & Bennett 1998).

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HRM in BRAC BANK

Organization Introduction
Company Background BRAC bank Limited is an affiliate of BRAC (formerly the Bangladesh Rural Advancement Committee), one of the world’s largest non-governmental development organizations founded by Fazle Abed in 1972. The bank’s objectives include providing comprehensive commercial banking services, building a profitable and modern, fullservice financial institution, and pursuing profitable market niches in the Small and Medium Enterprise (SME) business sector not traditionally met by conventional banks. While BRAC specializes in microfinance, health and education services for communities in extreme poverty, BRAC Bank was established in 2001 primarily to provide loan and general banking facilities to small-to-medium-sized enterprises (SMEs) in Bangladesh. This sector, comprising businesses such as grocers, corner shops, clothes retailers and some small manufacturers, had traditionally been under-served by the established banking community. BRAC Bank is now the fastest growing bank in Bangladesh both in deposits and credit, making average SME loans and also offering loans and credit cards to consumers.

Company Vision Building a profitable and socially responsible financial institution focused on Markets and Businesses with growth potential, thereby assisting BRAC and stakeholders build a "just, enlightened, healthy, democratic and poverty free Bangladesh (BRAC Bank, 2010).

Company Mission • • Sustained growth in 'small & Medium Enterprise' sector Continuous low cost deposit growth with controlled growth in Retained Assets

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Methodology To prepare this report we have collected data from different materials. Scope of the Report Most of the Banks in Bangladesh has Human Resource Department. Then we have conducted a secondary study. this way we collected secondary data. We collected much information from several websites. After that we have contact a respective HR manager of BRAC Bank. getting a job). SME unit offices and BRAC Objective For the report assigned in the course HRM 501.HRM in BRAC BANK • • Corporate Assets to be funded through self-liability mobilization. which we help us later stage of our life. 3 . This is our core objective. books and journal. Thus. Growth in Assets through syndications and investment in faster growing sectors. we have used both primary and secondary information to prepare this report. which is our primary data. I worked on a company’s recruitment and selection process. It is very important to learn about them. Another objective of this report is to match the learning of Human Resource Management with the real life problems. Because theory of HRM is related with our practical experience (hire employee. By doing this report we have sufficient knowledge about how a company’s HR department run. For doing report we need to learn all the basic elements of HRM. We have also collected data from the internet. Achieve efficient synergies between the bank's branches.

issuance of show cause. conducting disciplinary enquiries and termination from service. Success stories of large banking companies have been evident of the fact that HRM is quite different from management of physical assets. Banks like other institutions have been handling this sensitive activity through respective personnel departments. This means human resources were managed like other physical assets e. We have to finish this report with limited time. 2004). The main limitation is time. calculators. Communication problem with Bank officials is another limitation. The work forces constituting all levels of employees are constantly thinking in many dimensions (Dawn packed with overseas appeal. Insufficient primary data also hinder our progress. pieces of furniture. Personnel departments were primarily engaged in approval of leaves. equipment and appliances. 4 . HRM and the Banking Sector For many years.HRM in BRAC BANK Limitation We face some difficulties to finish this report. handling of staff loans. Human brain has its own peculiar chemistry.g. Its strong sensory and decision-making capacity has to be greatly emphasized by the employers. Officials are reluctant to disclose their internal information to us. Recruitment was a routine function and was done in a mechanical way to hire people with specific educational background irrespective of their real value to the institution. which is insufficient.

All the excellent organizations surveyed made effective use of their human resources. and the results of having the right employees motivated to perform are numerous.HRM in BRAC BANK HRM in BRAC Bank Defined here. retain. and motivate employees (Schuler & MacMillan. They include greater profitability. and more rapid acceptance and implementation of corporate strategy. low employee turnover. lower production costs. High product quality. The major purposes of these activities traditionally have been to attract. The BRAC Bank Human Resource Department looks similar to the Organogram of next page. 5 . infrastructure requirements consist of those functions and activities necessary for the effective management of a company's human resources. 1982). The result of effectively managing human resources is an enhanced ability to attract and retain qualified employees who are motivated to perform. We refer to them as human resource management (HRM) practices. 1984). and they did this through their personnel and human resource management (Peters and Waterman.

These are: • • • • • Recruitment and Selection Training and development Appraisal and Maintenance Compensation Employee relations We discuss here only first 2 topics of HRM.HRM in BRAC BANK There are five different areas of Human Resource of Management in BRAC Bank. 6 .

They review everything. So. Fresh candidates are recruited with little English skill. entry activities etc. BRAC Bank has three different levels of employees. An experience of one year is appreciated so that the work can be done with accuracy. The number of employees was only 745 in the year 2006. their recruitment must be handled with intense care. Chief Treasurer. which are – Executive/Support Level As we have seen from the organogram of BRAC Bank the topmost position falls under this category. In recruitment. The employees who fall under this line of employees are the different Heads or Line Managers of various departments and their Assistant Managers. Good background is observed and experience is appreciated. BRAC Bank has increased its effort to find out the best possible employees and utilizing their talent to succeed. It suggests that the bank has been giving a serious thought to the Human Resource Development. maintain paperwork & entry in the system. Computer skill. The employees that fall under this category are the CEO. 7 . in the span of these two years the bank has already doubled its workforce. They maintain documentation. They are the most influential members of BRAC Bank. Vice President (VP). knowledgeable person is needed. So. Their recruitment method and sources are obviously different as they are the top-level management.HRM in BRAC BANK Recruitment Process of BRAC Bank BRAC Bank presently has approximately 1500 employees working for the bank. the Chief Risk Manager. Operational Level The employees are the ones who take orders from the top level mangers and direct their subordinates to achieve overall organization goal. Heads of Financial Control Unit (FCU) and CBG and Residence Vice President (RVP).

The positions in this level include the Assistant Officers and Line Staff. This interview can be a structured one or an unstructured one. Although the line staffs are important but the assistant Officers are the ones to look out for. For obvious reasons the selection and recruitment process are not the same. Like all other process it also has its pros and cons. conducts a detailed job analysis to know the different aspects of a particular job. Before going deep into selection process we must discuss the utmost important prerequisite of the selection process. This is a very good opportunity for the bank to direct the most talented employee such a way so that he/she can benefit the bank in future to a much greater extent. Most of them are fresh graduates trying to learn the various aspects of working life.HRM in BRAC BANK Field Level This level’s recruitment is handled with care because this is the potential future field of finding company’s next top performers. It is Job Analysis. Knowing this BRAC Bank gives an extra effort in the recruitment of fresh employees especially Assistant Managers. BRAC Bank also has a process like that. like most o the responsible and successful corporations. BRAC Bank. 8 . As we know that not every position in the organization has the same recruitment process. The methods that BRAC Bank uses to collect data about the job are describe below – Interview BRAC Bank conducts a formal or informal interview (depending on the position) to collect data. We are going to discuss the general selection process of the bank in the further parts of our report. Both are used. But all selection process has some basic outlined steps.

Observation This is another method used by the bank to collect job information. In this method the superior observes the employee and collect data. Selection process of BRAC Bank BRAC Bank uses different methods and sources for their three levels of employee. This is more of a back up method of BRAC Bank. BRAC University because time limitation and cost is higher. which helps the job analyst to make the job description form. But in general BRAC Bank uses the conventional selection process. The steps include – • • • • • • • Planning And Forecasting Reviewing Inside Sources Outside Sources Completion and Screening of Applications. After collecting the data from the employees it is a must to verify that data.HRM in BRAC BANK Questionnaire The Job Analyst gives the questionnaire to the incumbent to fill up the questionnaire. The questionnaire contains some basic job related information. It uses this just to verify the data found primarily. Questionnaire is created by some external HR agencies. Aptitude Test Preliminary Interview Follow-Up Interview 9 . BRAC Bank does that by the observation along with a recheck of the employees just to make sure that the integrity and truthfulness of the data is not sacrificed. The main advantage of this method is that a large number of employees can be questioned at the same time and it is less costly.

10 . Trend Analysis: The trend of hiring employees is also a good measure of the employee needs in the future. Planning and Forecasting Employee needs Before selecting any employee. the bank must know what its needs are for that particular year. Revenue Growth Activity: BRAC Bank also predicts its employee needs by the finding the correlation of revenue and the number of employees needed to earn that revenue. No organization can have an effective and efficient selection unless it knows what it wants and how many it wants. Occasionally. BRAC Bank uses some methods to forecast the employee needs. BRAC Bank uses this method to predict the future job needs. These are – Budget Cycling: The first method that BRAC Bank uses is to predict its future employee needs according to the past proportion of budget and employee needs.HRM in BRAC BANK • • • Reference Checking Medical Test Final Decision The steps are further discussed in the following parts of the project.

sometimes the HR department is informed to mail the list of the interested internal candidates. For example. From field level to operation level. The outside sources can be different for every level. then there is no need for further recruiting. Different sources are used in different level of job. Then interview is done on the basis of the recommendation of the head of the department and he is recruited.HRM in BRAC BANK Reviewing Inside Sources After deciding what number of employees the bank needs. check his/her past performance and decide on the suitability of the employee in that position. we know that the outside sources can be – Sources Executive Recruiting Employee Agencies Personal Sources Previous CV’s Circular Interns Level most likely to be used Executive level Executive level Mid level Fresh/mid level Fresh/mid level Fresh level 11 . recommendation of the supervisor etc. From our interview with the HR. selection is arranged on the basis of performance. So. the concerned Department’s manager watches if there is anyone within the bank to meet the requirement of the vacant position. But if the employee is not found then the bank has to look for outside sources. higher or similar rank in the organization. a source that is used for Executive level hiring is less likely to be used for any other level’s position. The external sources are often expensive. Manager & Administrator. Outside Sources If the employee is found from the internal sources. Senior managers discuss the strengths and weakness of the employee.

numerical ability. teachers form BRAC University etc. which are written according to the requirements of the job and are qualified for the job. No such test is required for the executive level. reasoning ability etc. So. respective department head. One important thing to consider is to see that screening is done only on the basis of qualification Aptitude Test BRAC Bank takes an aptitude test of the candidates for the Mid/Junior level position. like their Managing Director. many gets rejected even if they might have been qualified for the job. that means in order to enrich their interview body they bring high profile experts also. some executives from Central Bank. HR has to go through so many applications that it feels that the ones. It measures verbal ability.HRM in BRAC BANK Completion and Screening of Application form After deciding what sources to use. The screening of the application is very critical. This test is done to measure a particular candidate’s ability to learn and perform in the job according to his/her learning. Preliminary Interview This interview is done to scrutinize applicants on the basis of different personal attributes. But their inability to write the application gets them rejected. should be kept. BRAC Bank often invite the high profile personnel form inside and outside their company. The main problem here is that some of the applicant cannot write a decent. BRAC Bank calls for applications from the interested candidates. In the interview panel. proper application. of the candidate. 12 Figure 1: Flow chart of recruitment and Selection .

HRM in BRAC BANK Forecast future needs Present Brach Interns Review Inside sources Line managers Discussion Other Branches Foreign Branches Employee Found Yes Terminate Recruiting Outside Sources Completion and Screening of Applications Aptitude Test Preliminary Interview Follow Up Interview N o Continue Recruiting Employee Agencies Executive Recruiting Previous CV’s Personal Sources Circular College Recruiting Previous CV’s Interns Circular Executive Level Mid Level Fresher Level Reference Checking Medical Test Final Decision 13 .

So. To verify this reference the most convenient method is used such as e-mail. It is because of the fact that most of the times the personal references do not give the right information about an applicant. professional references are more valued. HR and that particular department seat together and decide which applicant to chose. So. Professional references are preferred and given more value. Reference Checking BRAC Bank gives a huge emphasize on reference for executive and mid level. phone call. a thorough interview is taken to further narrow down the number of applicants. This is done only when the number of applicants left after primary interview is too high and there is nothing much too differentiate them. This interview is done to determine the suitability of an applicant for a specific job position. letter etc. then the bank take a medical test to ensure that the applicant doesn’t have any illegal habits and is able to perform the job. Final Decision The final decision depends on the report of the medical test and the preference of the concerned departments. The main purpose of this interview is to narrow down the number of applicants on the basis of some requirements of the job. But phone call gets the preference than e-mail or any other method.HRM in BRAC BANK Follow-Up Interview BRAC Bank uses a second or follow up interview for further scrutinizing of applicants. Medical Test If the applicant pool is narrowed down to only one or two. 14 .

Increasingly. Mainly these trainings are in house. In some of these cases. According to the management of BRAC Bank orientation is very significant as they arrange the formal orientation program regularly. In BRAC Bank. like on every week or month they send 2 or 3 employees for training. organizations can redesign jobs and also decide to develop a new product requiring technologies not used before. They also said that for operational level and executive level it is very important. The need for training and development can arise for many reasons. They are introduced to the universal set of shared corporate values to guide the way to work with colleagues. For that every department has planning. customers. 15 . employers are realizing how important it is to provide training Advertisement development if they are to stay competitive and profitable. technological changes that result in new job skills can occur. Employee Orientation The employee orientation program of BRAC Bank is arranged so that it can ensure a nice morning for a new employee who hints a sheer glimpse of rest of the day in order to avoid reality shock and make employees clear about what is expected from them and can be expected by them. suppliers and other key stakeholders to help build the BRAC Bank. every year there is a 40 hour training program.there will be lectures or employees go into a department and see how the entries are done.HRM in BRAC BANK Training and development Employee training and development is any attempt to improve current or future employee performance by increasing an employee’s ability to perform. Job applicant with insufficient skill may be hired. Methods of training and development For every employee. For in house training. the need for training and development can be immediate and unplanned or can anticipate and planned for in the future. this orientation is done with certain importance.

One of the main objectives of the training and development programs is continuous improvement of the human resource so that they can not only cope with the rapidly changing. self driven and learned. standardized agenda in every step of training and development process. motivated. intensively competitive global business market but also launch revolutionary banking system. BRAC Bank follows following training and development techniques in order to ensure continuous improvement of its human resource: • • • • • On the job training (OJT) Strengths Based Development process Mentoring Leadership and Management Development Improvement through performance measurement 16 . progressed and grown within the bank. human resource department follows some systematic.HRM in BRAC BANK BRAC Bank aims to obtain and maintain best quality of their internal customers in line with its objective to earn maximum customer satisfaction where the word ‘customer’ indicates both internal and external customers. In order to get people energetic.

• According to a HR Manager Mr. this is a problem which needs to be rectified because everybody deserves a fair chance. The bank also doesn’t try to make the applicant comfortable in the interview. BRAC Bank doesn’t give a circular to the employees. at least a chance. most applicant get nervous while the interview. So. many of them can’t perform to their potential. employeeemployer relationship is up to the standard. The bank just discusses among the managers and decides on the position. Boredom usually leaves few spaces the employees to enjoy on the training programs. 17 . While making this report we saw few lacking in different aspect. • Even though BRAC Bank offers a broad spectrum of training and development programs there are very few opportunities to enjoy them. Jamil. which Are: • While recruiting from inside. The employees get no chance to express their will to join get particular position. skill development process. Their employee recruitment and selection process. It has a very mature Human Resource Department. The jobs need to be done are very much repetitive. To us. It is a very bad thing for BRAC Bank. tedious and most of the time employees need to work for usual office hours. It follows clear set of rules to run the HR Department.HRM in BRAC BANK Conclusion BRAC Bank is one of the most successful banks in Bangladesh.

This way the bank would have done the best it can do to get the best employee from the bank. Any kind of negligence could lead to a potential wrong decision. It is because everybody should have a fare shot at the vacant position. • The first thing the bank has to do after a position is vacant is that it should give an inside circulation to call for application from the employees. This thing has to take care of. nothing else. The management may not know about the employee of another branch who has enough potential to fill up the job. • Sometimes while selecting from inside. which they already have. 18 . Moreover the company need to be aware not only about developing more training techniques but also about ensuring that employees have enough time to enjoy them. which may harm the company for a very long time. The best way would be to post a notice on the office notice board beforehand. This can be done through sending an e-mail or letter. • Taking the advantage of technological improvement the bank can share more information and thus upgrade training and development process.HRM in BRAC BANK Recommendation Here are some recommendations we think BRAC Bank should consider for their recruitment and selection process: • To overcome this internal recruiting problem what we suggest is a redesign of their internal selection process. there is a potential chance of any kind of favor. The employees have to be notified about the vacancy. The bank should provide the employees a flexible work schedule. The bank shouldn’t take it easy because it’s the employees giving interview. • The interview should be proper and formal. Even after that if some qualified person doesn’t apply then it’s the employees who missed the chance. The screening of the application should only be on the basis of qualification.

It works in the most advance way possible in all their activities that make it easy for them to achieve their desired goal with a less effort. management services. The bank is trying to establish a flexible HR system. The company's employees are very willing to accept changes. so that top management can constantly stay updated concerning the performance level of their respective personnel. HRM department operates at the center of the business. Skills and competence are ensured to align with that of corporate objectives. For BRAC Bank to flourish in the country. vision. coordinated effort has been made by all its departments. Not to mention HR department among them outstands in all respects. and human resources. This is very important for any bank to operate successfully in Bangladesh. BRAC Bank’s establishment and success with the HR department has greatly contributed to a highly motivated labor force compare with other companies. They are always ahead of current thinking with new practices. policies and practices.HRM in BRAC BANK Final Conclusion BRAC Bank is a way ahead in terms of its business. concepts and management techniques. strength. The bank is trying to be very flexible and is capable of adjusting to any change whatsoever. They are trying to develop effective and morale boosting compensation packages. managing the dynamic people. 19 . where many strong competitors are present.

. 1st ed. Grand Central Publishing. available at : http://www. T & Waterman. 2004.  Stone. A Handbook of Human Resource Management Practice. Available at : http://www. Inc. U.A. M.  Peters. 1998. I 1984. Human Resource Management. 2nd ed. In Search of Excellence.dawn. John Wiley & Sons. 2006. Human Resources Management (Frameworks Series). Gaining Competitive Advantage through Human Resource Management Practices. U. R.  Graham. [online]. R 1982. R 1998...A.S.htm  Dessler.S. retries/visited 13/03/2010.A. 20 .. U. 10th Edition.  Bracbank.php  Dawn. John Wiley & Sons Australia Ltd.  Schuler.HRM in BRAC BANK References  Armstrong. Human Resource Management. retrived/visited 12/03/2010. U.bracbank. Pearson Education Australia.com/company_profile.A. London.S. 9th ed. 3rd ed. Kogan Page..A. Pitman Publishing.S.com/2004/10/04/ebr7. Lloyd-Walker. [online]. Griffiths. R & MacMillan. U.S. 1st ed. H & Bennett.

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