Human Resource Management of IDLC Finance Limited

Human Resource Management of IDLC Finance Limited

Submitted To:

Tasfia Mazid
Lecturer, Department of Management School
of Business & Economics

Submitted By:

Titam Bhattacharjee 1621055030

Abdul Aziz 1811162630

Farzana Mazid 1812214030

Nafisha Tafannum 181087030

Md. Kamrul Hasan 1721447030

Section: 02

Group Number: 01

Course: MGT 351

Date of Submission: 25th August, 2019

1
Human Resource Management of IDLC Finance Limited

Executive Summary
IDLC Finance Limited started its journey back in 1985 as a leasing company named as
Industrial Development Leasing Company with 5 staff members. The company was an effort
of IFC, Korean Development Bank and other financial institutions. The HR team of the
company has played a much bigger role in shaping the company’s strong foot in the industry.
HR department employs one line manager with the newly recruited employees so as to avoid
clashes and biases towards colleagues. Ethical work standards are followed to ensure justified
outcomes for every employee. The recruitment process for Junior Officers and Management
Trainee Officers take place in the same way. The candidates are sorted and asked to sit for an
interview and then a case study session for the candidates. Through this the HR team selects
the best of the members and then they are asked to sit for a final interview. Senior executives
are chosen through an internal process and they are only asked to sit for an interview since
experience on a particular field is required here. Compensation packages for employees are
above industry standards and constantly being reviewed every year. Doing this report we
have found that, IDLC has stopped taking MTOs twice a year and the rate of women worker
is less compared to male workers which they should increase and IDLC should start
recruiting MTOs twice a year.

2
Human Resource Management of IDLC Finance Limited

Contents
Introduction...............................................................................................................................4
Methodology.............................................................................................................................4
Background Information about the company...........................................................................4
Current Human Resource Management System......................................................................5
Recruitment.............................................................................................................................5
Recruitment for Junior Officers.........................................................................................5
Recruitment for Management Trainee Officers................................................................6
Senior Executive Roles.......................................................................................................6
Internal Recruitment..........................................................................................................6
External Recruitment.........................................................................................................6
Selection Process.......................................................................................................................7
Selection for Junior Officers and Management Trainee Officers...........................................7
Selection for Senior Executives..........................................................................................7
Training and development.........................................................................................................7
Benefits Offered........................................................................................................................8
Culture of Interpersonal Relationships......................................................................................9
Implications of Strategic Human Resource Management.........................................................9
Recommendations...................................................................................................................10
Conclusions.............................................................................................................................10
References...............................................................................................................................10
Appendix.................................................................................................................................11

3
Human Resource Management of IDLC Finance Limited

Introduction

Behind the successful career of IDLC, the Human Resource department of IDLC has always
put forward employee’s satisfaction more than anything else. The company’s HR department
runs on one simple theory, “Employees are satisfied, yearend earnings will be satisfactory”
(Mushfiq Alam, Asst. HR Manager, IDLC Finance). The company has strict governance
while recruiting employees and follows multiple steps to extract the best. It also has multiple
training facilities which ensure proper corporate teachings to its employees and how to deal in
the competitive market. The company offers competitive packages as compensation for the
hard work of the employees, which incentivizes and harnesses the talent through which the
company moves forward along with top-notch leadership from the upper management levels.
The detailed procedures of the selection process, training and development are described in
the following sections.

Methodology

This section of the report has compelled us to inquire about the human resource management
of the company and the super HR team of IDLC. The HR team of the company has set
standards for every other competitor in the market and thus by harnessing the best, the
company is marching forward. One such fine talent is Mr. Md. Mushfiq Alam Arko, currently
working as the assistant HR manager from operational division and SME banking. We
interviewed Mr. Alam and have received information about the HR management of the
company. Aside from his information, we gathered few important facts and figures about the
company through various reports and articles published in newspapers. Examining
information we have made this report which gives a clear idea about the Human Resource
Management of IDLC Finance Limited. The company IDLC has four other sister concerns
but we have only worked with IDLC Finance as the other four synergies have different
recruitment processes.

Background Information about the company

4
Human Resource Management of IDLC Finance Limited

Started in the year 1985 as a single product leasing company in Bangladesh, IDLC is now the
largest Non-Banking financial institution of the country. Under the supervision of Mr. Arif
Khan, Chief Executive Officer and Managing Director of the company, IDLC has set marks
by becoming the best NBFI in 2019. The company has been acclaimed by different
institutions both nationally and globally and has made itself one of the most attractive
companies in Bangladesh to work in. Due to one of the strongest HR teams, IDLC hires
quality young talents who are trained, built to be next generation leaders of not only for the
company but also for the country. The company focuses on extensive training and benefits to
treat its employees in the correct way as to make them believe in themselves and also make
them equipped with corporate knowledge which helps the company to march forward. In
2012 from IDCL, the company was formed as IDCL Finance Limited and along with four
other synergies of the parent company IDLC. IDLC Investments, IDLC Securities and IDLC
Assets Management Limited were formed to divide the tasks and to increase the portfolio of
services provided by the company.

Current Human Resource Management System

Recruitment

The recruitment process takes place in three ways or three openings. IDLC Finance Limited
recruits Junior Officers, Management Trainee Officers and Senior Executive Officers.
Recruitment process for Junior Officers and MTOs are almost similar in nature but the
recruitment process for any senior level post is different and mostly takes place through only
one interview. All the three processes are described in detailed below:

Recruitment for Junior Officers

Curriculum Vitae of different applicants are received through bdjobs.com. IDLC Finance
Limited recruits Junior Officers for roles mostly outside Dhaka. On average, ten thousand to
twelve thousand applicants are received through bdjobs.com. IDLC Finance posts job
opening roughly one week before the interview takes place. The sorted candidates are asked
to sit for an interview in the first round and then a case study and a final interview.
Candidates are also checked on literacy skills based on which they are dispersed among the
wide network of Bangladesh.

5
Human Resource Management of IDLC Finance Limited

Recruitment for Management Trainee Officers

IDLC Finance Limited follows the same procedure for MTO recruitment. Job openings for
the MTO posts are posted in bdjobs.com and in various newspapers, LinkedIn. Company
receives on an average of twenty thousand applications for the MTO position. The
applications are first based on CGPA, experiences and quality of Curriculum Vitae. Since
MTOs are required to work in different fields, candidates with dynamic backgrounds are
preferred mostly.

Senior Executive Roles

For this role, IDLC Finance Limited mostly prefers internal references as these posts requires
extensive knowledge on a particular field. This is mostly done with the help of officers from
around the country who work with many professionals from other institutions. These
regionally located officers of IDLC Finance give references about experts and later on they
are called for an interview. The interview is a rigorous one as no aptitude testing or case study
is given to the candidates. The interview is mostly taken by the MD himself and confirms
proper knowledge of the candidate in the required department of the company.

Internal Recruitment

Company recruits by internal references only when they require very highly qualified
individuals. This is at most times done by internal job posting where the existing employees
can apply and prove him or her to be well situated to the position or through from other
companies who have worked in the required field of work. This is done to avoid multiple
applications and to save time.

External Recruitment

For entry level posts, IDLC follows external recruitment and applicants through external
recruitment are usually tested through rigorous techniques to extract the best. External
recruitment is mostly done through bdjobs.com, LinkedIn, newspaper advertisements.

6
Human Resource Management of IDLC Finance Limited

Selection Process

Selection process for all the job openings in IDLC besides Senior Executive recruitment is
designed in a similar way. Different ways of selection processes are described below.

Selection for Junior Officers and Management Trainee Officers

Selected applicants for both the posts are first prioritized based on CGPA, academic
qualifications, experience and quality of LinkedIn profile, curriculum vitae. In the second
phase, applicants are required to sit for an interview which tests their presence of mind and
are asked questions based on the current financial world, economics conditions, general
knowledge, few questions on corporate finance and scenario based puzzles. After they go
through this, junior officer applicants sit for a case study on a simple topic which requires a
simple solution. MTO applicants sit for competitive based case studies which are rigorous
and tests critical reasoning, aptitude, problem solving skills, management skills and ethical
point of view along with some culture based tests. After the candidates pass these, they are
asked to sit for a final interview which tests eagerness to work for a company.

Selection for Senior Executives

Senior Executive applicants are only tested through an interview which tests their skills on a
particular field of experience and is mainly taken by the MD and head of Human Resource
department.

Training and development

IDLC has developed rigorous training programs which add value to the company by adding
value to its members.

The first step is to decide the type of training needed for the people to complete their work in
the most productive way. IDLC train the newly recruits from the basic. However, refresher
training is provided to the more experienced workers.

7
Human Resource Management of IDLC Finance Limited

The second important step is to identify goals and business objectives. Here the workers are
informed about what they should do or should stop doing in order to achieve the goals. The
objectives should be thought out beforehand.

The third step is to conduct the training. IDLC always makes sure that the training is
conducted by professionals who have adequate knowledge and expertise in the given subject
to make the training program a more successful one. They also motivate the worker to
participate in the training process

After a successful training program, the workers need to implement the knowledge they have
attained so far. A successful training program will lead to a successful implementation.

The fifth step is to evaluate the effectiveness. Evaluation is important to measure the success
of training. It also helps to measure what people have achieved from the training.

Benefits Offered

IDLC offers benefits which are industry standard and following consist of the benefits plan.

Supplemental Pay: Paying for the time not worked are the supplemental payments. IDLC
covers sick leave, parental leave, vacation and holidays, severance pay as per the local and
global policies in their supplemental pays.

Insurance Payments: IDLC focuses mostly on Hospitalization and health insurance of their
employees.

Provident Fund: An investment out oh which lump sum is provided to employee on

retirement.

Home loan: IDLC provides home loans to their employees at minimum interest rates.

Bike, Furniture and Mobile options: They don’t have any car options right now but
employees can have bike, furniture for home and mobile options if they seek.

Festival Bonuses: Interesting side of IDLC festival bonus is they provide 2 festival bonuses
which is not done by most of the Local and MNC’s.

8
Human Resource Management of IDLC Finance Limited

Culture of Interpersonal Relationships

IDLC employees share similar types of goals and objectives. Employees communicate with
each other on a regular basis to maintain a healthy relationship. They restrain themselves
from spreading rumors at IDLC and prefer to confront the individual personally about whose
rumor has been spread rather than publicize it. Team leaders of IDLC prefer to discuss about
problems individually rather than scold that individual in front of everyone. Team members
practice polite behavior among each other and maintain a happy and healthy relationship.

IDLC employees do not involve themselves in politics. There is competition among each
other but in a very healthy way. Team leaders of every group in IDLC motivate their
subordinates to perform better. They also create a comfortable workspace for everyone.

Implications of Strategic Human Resource Management

IDLC’s strategies in recruiting employees follow a very clear path. Qualified employees
regardless of religion, background are chosen. Rigorous selection process makes sure that the
qualified employees are on boarding who are well equipped with current business world and
have the capability to become leaders in the future. After joining, employees receive
extensive training to make them accustomed to the culture of the company and most
importantly about the business of the company. Training is done by making employees work
at different departments for a number of periods which makes them equipped with
department knowledge and can deliver in times of need. Also training ensures that, next
generation leaders are created who can fill-up the void in the leading positions of the
company. To incentivize the employees, the pay scale gets a yearly revision which makes
sure that the employees are receiving above industry salaries and benefits which makes them
more committed towards their work. Besides that, employees are given loan benefits and
necessary leaves to make them feel that they are working for a company which does not only
harness talents but also nurtures talents through various incentives and benefits that the
company can offer. Thus, with one goal, the HR department works continuously to ensure
that the whole workforce is satisfied and energized enough to deliver the best.

9
Human Resource Management of IDLC Finance Limited

Recommendations

IDLC has stopped taking MTOs on a quarterly basis from 2018 as they want to follow a
strategy that only hires next generation leaders once a year. This strategy has not been fruitful
for the company itself as graduates do not wait for a particular company’s recruitment and are
taken up by other companies. IDLC should at least recruit MTOs twice a year so that
graduates from private universities get ample chance to show case their talents.

The company should look forward to recruit more women employees as the percentage of
female workforce in IDLC is around 36%.

Conclusions

IDLC Finance Limited, the largest NBFI in the country is doing at its best by utilizing the
best from its employees and it is doing by excellent HR practices. The company is marching
forward by its strong workforce and the results this workforce is putting out. The excellent
HR team is working relentlessly to make the business level operations of the company to run
smooth by tracking employee activities and thus creates a working-friendly environment
which accommodates females and males who are working together leaving behind
differences, religion, races and following ethical working standards.

References

Assignment Point. (2019). Business Overview of IDLC Finance Limited - Assignment Point. [online] Available
at: https://www.assignmentpoint.com/business/finance/business-overview-idlc-financelimited.html [Accessed 24
Aug. 2019].

En.wikipedia.org. (2019). IDLC Finance Limited. [online] Available at:

https://en.wikipedia.org/wiki/IDLC_Finance_Limited [Accessed 24 Aug. 2019].

Digitalcommons.ilr.cornell.edu.(2019).[online] Available at:

https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1468&context=cahrswp [Accessed 24 Aug.
2019].

Idlc.com. (2019). About Us - IDLC at a glance | IDLC. [online] Available at: https://www.idlc.com/theworld-of-
idlc.php [Accessed 24 Aug. 2019].

10
Human Resource Management of IDLC Finance Limited

Idlc.com. (2019). News - Trending news, Updates and latest financial activities | IDLC. [online] Available at:
https://idlc.com/news-events.php [Accessed 24 Aug. 2019].

Businessnews24bd.com. (2019). IDLC Finance’s profit rises 8pc | Business News 24 BD. [online] Available at:
https://businessnews24bd.com/idlc-finances-profit-rises-8pc/ [Accessed 24 Aug. 2019].

Interview with Mr. Mushfiq Alam Arko, assistant HR manager from operational division and
SME banking.

Appendix

Contribution Table

Contribution Parts from the Project

Titam Bhattacharjee  Implications of Strategic Human

Resource Management
 Recruitment
 Selection Process
 Conclusions
Abdul Aziz  Executive Summary
 Recommendations
Farzana Mazid  Culture of Interpersonal Relationship
 Training and Development
Nafisha Tafannum  Methodology
 Background of the company
Md. Kamrul Hasan  Introduction and Benefits

11
Human Resource Management of IDLC Finance Limited

12