HRM Practices in Private Commercial Banking Factor AIB PLC

Internship Report
On
"HRM Practices in Private Commercial Banking
Sector: A Study on Al-Arafah Islami Bank PLC"
SUPERVISED BY:
Mohd. Kamal Uddin
Associate Professor
Department of Business Administration
BGC Trust University Bangladesh
SUBMITTED BY:
Majedul Alam
ID No: 2035007
Reg. No.: 200335007
Program: BBA (HRM)

Date of Submission: 31st January, 2024
i
Letter of Submission
Date: 31st January, 2024
To
Mohd. Kamal Uddin
Associate Professor
Subject: Submission of Internship Report
As per the requirements for the completion of the Internship program, this report has
been prepared by me on “HRM Practices in Private Commercial Banking Sector:
A Study on Al-Arafah Islami Bank PLC”. The report focuses on the
implementations of some of the key elements in Human Resource Management.
During this project, I tried to relate the theories that I taught in class into the Al-
Arafah Islami Bank PLC and understand how these theories are practiced in real life
situations. I always try to put my honest and sincere effort to give this report a
presentable shape and make it as informative as possible considering the constraints. I
believe this paper will give an actual scenario of the present Human Resource
management practice of Al-Arafah Islami Bank PLC.
In the making of this report, I have followed all your specific instructions involving
report writing so as to present my views and in the easiest manner. However, I will be
glad to clarify any discrepancy that may arise.
Thanking you,
____________________
Majedul Alam
ID No: 2035007
Program: BBA
BGC Trust University Bangladesh.
ii
Internship Certificate
iii
Student’s Declaration
I declare that this internship report has been composed by me, and the work presented here
has been done by myself and has not been accepted any previous application for the award of
degree from any university. All quotations marks, and sources of information have been
specifically acknowledged by reference to the authors.
January, 2024 The Author
iv
Supervisor Declaration
This is to certify that the Internship Report on "HRM Practices in Private

Commercial Banking Sector: A Study on Al-Arafah Islami Bank PLC" is a bona
fide record and has been done by Majedul Alam, ID: 2035007, as the partial
fulfillment of the requirement of BBA program of the Department of Business
Administration, BGC Trust University Bangladesh.
This report has been prepared under my guidance and is record of the bona fide
work carried out successfully.
__________________________
Mohd. Kamal Uddin
Associate Professor
BGC Trust University Bangladesh.
v
Acknowledgment
I would like to take this opportunity to express my deepest appreciation to all those who
provided me the possibility to complete this internship report. My acknowledgement begins
with thanking my academic supervisor Mohd. Kamal Uddin, whose constant help mattered a
lot regarding certain aspects of this report, and also for giving me the opportunity to learn
how the theories in the book actually are implemented in real life situations.
I am especially grateful to Shahana Parvin (Senior Officer) for his invaluable support and
direction that lead me to the successful completion of my internship report. I have done my
whole internship period under his supervision and really grateful to him for a big time for
helping me in my each and every step of work at office After that I would like to thank
Didarul Alam (Executive Officer), Kamrul Hasan, Principal Officer (Loan & Recovery
Department) and Israt Jahan (General Banking Department) for their kind assistance
regarding the report. Without them it would be impossible for me to complete this internship
report. I got all necessary guidelines, cooperation and advice from them to complete this
complicated task.
I also convey my deep gratitude to, Jalal Uddin Ahmed (Manager) of Al-Arafah Islami Bank
PLC for sharing his vast experience and knowledge with me and helping me to get reliable
information about the Al-Arafah Islami Bank PLC.
vi
Executive Summary
This report is prepared on the basis of my three months practical experience at Al-Arafah
Islami Bank PLC Bank Limited. The Internship Program helped me a lot to learn about the
realistic situation of a financial institution. In the age of modern evolution bank plays a vital
role to keep to the economic development wheel moving. Al-Arafah Islami Bank PLC Bank
Limited has been operating as a leading private commercial bank with its strong business
arrangement of 211 branches all over Bangladesh and providing sincere and customized
banking service to its customers in a receptive and technology-based environment. The
functions of the Bank cover a multiple services and functional activities to individuals, firms,
corporate bodies and other multinational agencies.
The report starts with an organization profile of Al-Arafah Islami Bank PLC giving its
background history, mission, vision, products and services they offer, their corporate culture
and the organizational hierarchy. Following that the next section contains information about
my internship activity, and my job responsibility during internship period at the Bank. The
next section is the largest which comprises the project, HRM Practices in Private Commercial
Banking Sector: A Study on Al-Arafah Islami Bank PLC. The project encompasses
introduction to the topic, recruitment and selection process, training and development,
compensation policy, leave management, training evaluation process, performance appraisal,
career development etc.
Each chapter contains detailed explanation of the HR functions with relevant examples
followed by Al-Arafah Islami Bank PLC. The next part of the report carries out SWOT
analysis that analyzing strengths, weakness, opportunities and threats to the organization and
figure out some important factors regarding HRM Practices in Private Commercial Banking
Sector: A Study on Al-Arafah Islami Bank PLC, in this report I also try to include my real-
life experience in branch banking and I also acknowledged different banking functions and
day-today banking activities on my way to complete internship.
vii
Table of Contents
Chapter-1: Introduction ..................................................................................................... 1
1.1 Introduction ................................................................................................................. 2
1.2 Background of the Report ............................................................................................ 2
1.3 Objectives of the Study ................................................................................................ 2
1.3.1 Primary Objective: ................................................................................................ 2
1.3.2 Specific Objective: ................................................................................................ 3
1.4.1 Primary Data ......................................................................................................... 3
1.4.2 Secondary Data ..................................................................................................... 3
1.4.3 Data Collection Process ......................................................................................... 3
1.5 Limitations .................................................................................................................. 4
Chapter-2: Background of the Organization ..................................................................... 5
2.1 Background of Al-Arafah Islami Bank Limited ............................................................ 6
2.2 Vision .......................................................................................................................... 6
2.3 Mission ........................................................................................................................ 6
2.4 Commitments .............................................................................................................. 7
2.5 Special Feature of the Bank ......................................................................................... 7
2.6 Corporate Information ................................................................................................. 8
2.7 Organizational Structure of AIBL ................................................................................ 9
2.8 Product & Service ...................................................................................................... 10
2.8.1 Deposit Products: ................................................................................................ 10
2.8.2 AIBL Investment Products .................................................................................. 10
2.8.3 Loan Product ....................................................................................................... 10
2.8.4 Service ................................................................................................................ 11
2.9 Financial Performance ............................................................................................... 12
2.10 Internship Activity ................................................................................................... 13
2.11 Job Description and Responsibilities ........................................................................ 13
2.12 Learning Outcomes .................................................................................................. 13
2.13 Personal Recommendations ..................................................................................... 14
Chapter 3: Literature Review ........................................................................................... 15
3.1 HR Purpose & Role ................................................................................................... 16
3.2 Function of HRM....................................................................................................... 16
3.2.1 Functions of Human Resource Management ........................................................ 16
viii
3.3 Strategic Planning, Employee Recruitment ................................................................ 18
3.3.1 Strategic planning................................................................................................ 19
3.4 Employee Training and Development ........................................................................ 21
3.5 Performance Management ......................................................................................... 22
Chapter-4: Findings of the Study ..................................................................................... 23
4.1 Strategic Human Resource Planning .......................................................................... 25
4.1.1 Assessing the current HR capacity ....................................................................... 25
4.1.2 Forecasting HR requirements .............................................................................. 25
4.1.3 Gap analysis ........................................................................................................ 25
4.1.4 Developing HR strategies to support organizational strategies ............................. 26
4.2 Human Resource Practice in Al-Arafah Islami Bank PLC. ......................................... 28
4.3 Recruitment Sources .................................................................................................. 29
4.4 Internal Recruitment .................................................................................................. 30
4.4.1 Promotions and Transfers: ................................................................................... 30
4.4.2 Employee Referrals ............................................................................................. 30
4.4.3 Previous Employees ............................................................................................ 31
4.4.4 Dependents of deceased employees ..................................................................... 31
4.4.5 Reviews .............................................................................................................. 31
4.4.6 Retirements ......................................................................................................... 31
4.4.7 Inside warning (promotion) ................................................................................. 31
4.5 External Recruitment ................................................................................................. 32
4.5.1 Expert or Trade Associations: .............................................................................. 32
4.5.2 Advertisements.................................................................................................... 32
4.5.3 Employment Exchanges ...................................................................................... 32
4.5.4 Contractual workers ............................................................................................ 33
4.5.5 Specialists ........................................................................................................... 33
4.5.6 Head Hunters ...................................................................................................... 33
4.6 Training and Development ......................................................................................... 35
4.7 Evaluation of Training ............................................................................................... 38
4.8 Performance Appraisal system in Al-Arafah Islami Bank PLC Limited ..................... 40
4.9 Performance Appraisal............................................................................................... 42
4.10 Compensation Policy ............................................................................................... 44
4.15 SWOT Analysis ....................................................................................................... 47
ix
Chapter-5: Data Analysis.................................................................................................. 49
Chapter-6: Findings, Recommendation & Conclusion .................................................... 66
6.1 Findings..................................................................................................................... 67
6.2 Recommendations...................................................................................................... 67
6.3 Conclusion................................................................................................................. 68
Appendix- Questionnaire ................................................................................................. 71
x
Chapter-1: Introduction
1.1 Introduction
1.2 Background of the Report
1.3 Objectives of the Study
1.4 Methodology
1.5 Limitations
1
1.1 Introduction
What we are taught in our student life in BBA course may not be sufficient for managing real
life business problems. It will not create any value that if we cannot combine gained
knowledge from the University with the actual work experience. Therefore, it is an important
opportunity for the students that we can make it easy by internship program. We can
understand the real business perspective and learn from it. Internship program is blended with
theoretical or academic and real life understanding. Bachelor of Business Administration
(BBA) is an undergraduate course.
By completing BBA program we understood the academic background of a practical business
circumstances in a close way. These understandings are applied and verified at the particular
organization to enrich the practical knowledge and gather experiences. After completing the
internship, I prepared a report on the knowledge and experiences I have gathered during my
internship.
This internship report is on “HRM practices of Al-Arafah Islami Bank PLC”. The report
will outline the HR Policies and Practices of Standard Bank such as HR Planning Process,
Training and Development process, Performance appraisal process, and Change management
process along with the detailed background of Al-Arafah Islami Bank PLC.
1.2 Background of the Report

I have worked in various Department of Al-Arafah Islami Bank PLC. In this report, I will try to
make an overall analysis on all activities of Al-Arafah Islami Bank PLC. specially focuses on
HRM Practices in Private Commercial Banking Sector: A Study on Al-Arafah Islami Bank PLC.
1.3 Objectives of the Study

1.3.1 Primary Objective:
Primary objective of the report is to fulfill the requirement of Internship program. As my
major course is Human Resource Management, I pursued to get the reflection of academic
learning in real life through analyzing the "HR practices of Al-Arafah Islami Bank PLC" as
well as it will help to make complete the internship report.
2
1.3.2 Specific Objective:
• To know overall HRM process of the Al-Arafah Islami Bank PLC
• To acquire practical knowledge on HRM practice
• To know the functions of various departments of HRM
• To learns about Al-Arafah Islami Bank PLC employment planning
• To be familiar with the recruitment and selection process of AIB PLC
• To learn about the employee benefits of Al-Arafah Islami Bank PLC
1.4 Methodology
This analysis is basically a combination of primary and secondary data. The main source of
data is different officers from Al-Arafah Islami Bank PLC, to collect information I try to ask
them and they responded to my questions and for that reason that information was very much
restrictive with the organization as they want to keep these confidential. Total Sample size 20
respondents.
1.4.1 Primary Data

➢ Personal Observation
➢ Conversation of bank officials and HR personnel
➢ Face to Face conversation AIB PLC, Anderkilla Branch.
1.4.2 Secondary Data
➢ Information from web
➢ Annual reports of Al-Arafah Islami Bank PLC.
➢ HR Books
➢ Relevant Books.
➢ Prior research report.
➢ Online Articles.
➢ Other Publications. Etc.
1.4.3 Data Collection Process

The data and information were collected through my working experiences at the branch and
by questioning the executive officers of the Al-Arafah Islami Bank PLC. By questioning
thoroughly, I had the chances to get to come across many kinds of information; all could not
be shared because of the confidentiality.
3
1.5 Limitations
Some limitations were faced while constructing this term paper. Some of the limitations are listed
below:
➢ Every organization has their own secrecy that is not exposed to others. While collection
the data they did not disclose their internal policy that hampers the organizational
confidentiality.
➢ Access to more internal information which we could not get hold of and they did not even
disclose those points in front of us.
➢ Many officers of the branch are not well informed about their HR Policy.
➢ Sometimes they unable to provide information due to busy working schedule.
4
Chapter-2: Background of the
Organization
2.1 Background of Al-Arafah Islami Bank Limited
2.2 Vision
2.3 Mission
2.4 Commitments
2.5 Special Feature of the Bank
2.6 Corporate Information
2.7 Organizational Structure of AIBL
2.8 Product & Service
2.9 Financial Performance
2.10 Internship Activity
2.11 Job Description and Responsibilities
2.12 Learning Outcomes
2.13 Personal Recommendations
5
2.1 Background of Al-Arafah Islami Bank Limited
With the objective of achieving success here & hereafter by pursuing the way directed by
Allah and the path shown by His Rasul (SM), Al Arafah Islami was established (registered)
as a private limited company on 18 June 1995. The inaugural ceremony took place on 27
September 1995. The authorized capital of the Bank is Tk.15000.00 million and the paid-up
capital is Tk. 10649.02 million as on 31.12.2021. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being
owned by indigenous shareholders.
The equity of the bank stood at Tk. 2348.32 crore as on 31 December 2018, the manpower
was 4247 as on 31 December 2021 and the number of shareholders was 19146 as on 31
December 2021. It has achieved a continuous profit and declared a good dividend over the
years. High quality customer service through the integration of modern technology and new
products is the tool of the bank to achieve success. The bank has a diverse array of carefully
tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 210
branches of which 25 is AD throughout the country.
2.2 Vision
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of
the national economy.
2.3 Mission
• Achieving the satisfaction of Almighty Allah both here & hereafter.
• Proliferation of Shariah Based Banking Practices.
• Quality financial services adopting the latest technology.
• Fast and efficient customer service.
• Maintaining high standard of business ethics.
• Balanced growth.
• Steady & competitive return on shareholders’ equity.
• Innovative banking at a competitive price.
• Attract and retain quality human resources.
6
• Extending competitive compensation packages to the employees.
• Firm commitment to the growth of national economy.
• Involving more in Micro and SME financing.
2.4 Commitments
• Ours is a customer focused modern Islamic Banking sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading
Islami bank in Bangladesh.
• To deliver financial services with the touch of our heart to retail, small and medium
scale enterprises, as well as corporate clients through our branches across the country.
• Our business initiatives are designed to match the changing trade & industrial needs
of the clients.
2.5 Special Feature of the Bank

As an Islami bank, we are singular in every positive aspect. We provide a bunch of state-of-
art banking services within the wide bracket of shariah. We are unique with our products,
strict with our principle and uncompromising with our honesty. Some of our special features
that make us notable in Islami banking sector are as follows:
• All activities of AIBL are conducted under a profit/loss based system according to
Islamic Shariah to get the nation rid of Usury.
• Its investment policies under different modes are fully Shariah compliant and well
monitored by the board of Shariah Council.
• During the year 2007, 70% of the investment income has been distributed among the
Mudaraba depositors.
• In 2008, AIBL has included online banking in its wide range of services. Bangladeshi
software has been introduced in this feature to promote the local developers.
• AIBL regularly arranges its AGMs (Annual General Meeting). Whenever needed
EGMs (Extraordinary General Meeting) are also arranged.
• We regularly pay dividend to our valued shareholders. For the year of 2013, we
declared 13.50% bonus dividend to our shareholders.
• We believe in providing dedicated services to the clients imbued with Islamic spirit of
brotherhood, peace and fraternity.
7
• The bank is committed towards establishing a welfare-oriented banking system to
meet the needs of low income and underprivileged class of people.
• The Bank upholds the Islamic values of establishment of a justified economic system
through social emancipation and equitable distribution of wealth.
• Following the Islamic traditions, it is assisting in the economic progress of the
socially deprived people; in the creation of employment opportunities and in
promotion of rural areas to ensure a balance development of the country.
• The Bank believes in social and philanthropic activities and has established AIBL
English Medium Madrasha and AIBL Library. More endeavors will inshallah follow
in future.
2.6 Corporate Information
Name of Company Al-Arafah Islami Bank Limited (AIBL)

Registered Office Al-Arafah Tower, 63, Purana Paltan, Dhaka,
Bangladesh.
Legal Status Private Limited Company
Incorporation 18 June, 1995
Opening of first branch 27 September, 1995
Authorized capital 15000.00 million
Paid up capital 10649.02 million
Deposit 1410604 million
Investment 1372751 million
Foreign exchange 1234167 million
business
Number of Employees 4247
Total Branch 210
8
2.7 Organizational Structure of AIBL
Managing Director & CEO (MD)
Additional Managing Director (AMD)
Deputy Managing Director (DMD)
Director General (DG) & Principal of AITRI
Senior executive vice president (SEVP)
Executive vice president (EVP)
Senior vice President (SVP)
Vice President (VP)
Senior Assistant Vice President (SAVP)
Assistant Vice President (AVP)
First Assistant Vice President (AVP)
Senior Professional Officer
Professional Officer
Senior Executive Officer
Officer Executive Officer

9
2.8 Product & Service
It the memorandum and articles of association of the AIBL is revised its area of operation is
clearly written. The product of AIBL is targeted to fulfill that aim. The product and services
that are currently available are given below:
2.8.1 Deposit Products:

AIBL is now offering different depository products for mobilizing the savings of the general
people
▪ Al Wadiah Current Deposit (CD)
▪ Al-Arafah Monthly Hajj Deposit (MHD)
▪ Mudaraba Shadhin Term Deposit
▪ Mudaraba Saving Ac- Garments Workers
▪ Mudaraba Savings Deposit (MSD)
▪ Mudaraba Short Notice Deposit (MSND)
▪ Mudaraba Term Deposit (MTDR)
▪ School Student (Minor) Mudaraba Saving Account
2.8.2 AIBL Investment Products
▪ Bai Muajjal
▪ Bai Murabaha
▪ Bai Muazzal (General) MEF
▪ Uzrat Bill Wakalah
▪ Bills Purchased
▪ Mudarabah Import Bill
▪ Bai-Murabaha Post Import (MPI)
▪ Hire Purchase Under Shirkatul Meilk
2.8.3 Loan Product

AIBL is offering the following loan and advance product of the client for financing different
purpose that fulfill the requirements of the bank and have good return of the investment as
well as satisfy the client. The loan and advance products are:
▪ Consumer Credit Scheme

▪ Lease Finance
▪ House Renovation Loan
10
▪ Small & Medium Enterprise
▪ House Building Finance Scheme (Corporate Client)
▪ Credit Card
▪ Festival Personal Loan
▪ Working Capital Financing
▪ Import Financing
▪ Export Financing
▪ Industrial Financing
2.8.4 Service
▪ Online Banking Services
▪ L/C Delivery Services
▪ Double Benefit Scheme
▪ Millionaire Deposit Scheme
11
2.9 Financial Performance
Particulars 2018 2019 2020 2021 2022 Growt

Income Statement
h%
Investment Income 20,49 24,95 28,81 26,33 23,44 (10
Profit paid on Deposit 11,78 16,25 18,60 16,55 13,07 (21
Net Investment Income 1.03
8,706 6.81
8,700 1.65
10,207 1.28
9,774 6.01
10,373 .966.
Non Investment Income 4.20
3,55 6.61
3,76 4.42
4,03 6.64
3,65 2.79
4,250 .04
) 16
Non Investment Expenses .83
5,308 .20
6,160 .236,384 .64
6,742 .227,129 15.
) .2
Net Non Investment Income 7.36
(1,751 9.39
(2,391 7.57
(2,346 5.46
(3,086 .17
(2,879 (8.
Profit Before Tax & .42
6,955 .70
6,308 .18
7,860 .33
6,687 .25
7,494 27
12.
7
Provision For Investment .06)
1,35 .31)
2,17 .61)
2,86 .87)
1,88 .08)
2,655 85
404
Provision
Profit Before Tax .77
5,600 .89
4,130 .62
4,992 .77
4,799 .14
4,838 060.
Provision For Tax (including 4.89
2,43 7.98
1,67 7.66
2,56 7.90
2,22 .58
2,712
).6
21
Profit After Tax .88
3,169 .91
2,456 .96
2,427 .87
2,571 .56
2,126 68
(17.
Deferred Tax)
Balance Sheet 1.38 4.11 5.33 8.06 .12 .7
.50 .80 .63 .81 .44 1
32)
Authorized Capital 15,00 15,00 15,00 15,00 15,00 3 -
Paid up Capital 9,943 10,44 10,64 10,64 10,64 -
Reserve Funds & Other 0.00
8,556 0.00
9,365 0.00
10,31 0.00
11,41 0.00
11,73 2.
Shareholders' Equity (Capital & .06
22,52 0.22
23,48 9.02
24,14 9.02
25,45 9.02
25,90 1.
Reserves
Deposits .96
244,80 .62
266,20 8.64
297,24 8.96
326,02 3.35
353,28 7
8.
Reserve)
Investment 0.68
235,90 3.22
261,87 8.24
288,48 5.85
308,62 0.33
336,89 7
9.
6.26 5.48 1.81 3.41 7.97 5
3
Investment in Shares & 10,14 12,21 16,17 21,56 30,15 39 5
Fixed Assets 5.23
3,260 4.13
4,494 6.02
4,351 0.66
5,833 0.72
5,470 (6. 1
Securities 5.49 4.67 0.52 3.67 6.14 .8 6
Total Assets (Excluding off- 319,25 338,46 381,05 418,29 462,68 10 6
Foreign Exchange Business .38 .61 .93 .88 .27 23
balance sheet items) 5.29 5.30 1.81 8.65 7.05 5
.6
Import Business 156,70 168,57 171,61 169,37 261,56 )
54
Export Business 104,54 114,48 108,96 104,93 135,78 1
29
Guarantee Business 0.00
6,443 3.80
7,096 1.70
8,274 8.90
10,51 6.10
13,67 .4
30
Inward Foreign Remittance 0.00
20,70 1.90
36,91 7.10
37,71 9.40
43,80 6.90
52,66 .4
20
.41 .02 .25 1.21 3.41 3
.0
Capital Measures 0
0.00 7.20 3.40 7.00 2.10 .2
Core Capital (Tier-l) 21,45 22,37 22,81 23,93 29,30 8
22
Supplementary Capital (Tier-ll) 5,488 10,07 9,735 15,32 14,35 1(6.
Tier-l Capital Ratio 9.8510 9.9310 7.4110 0.89 9. 1.3010 .40.
Tier-ll Capital Ratio .97 2. 8.56 4. .77 4. 7.20 6. 9.58 5. 31
.4 .1 .2 4(1.
Total Capital 26,94 32,45 32,55 39,255 4366.3 11
)06
7
Total Capital Ratio 136 145 143 151 15 0 (0.
Investment Quality 8.820 8.492 3.182 8.09 9 0.887 .28
.06 .66 .56 .74 .48 )28
Volume of Non-Performing 9,921 12,69 14,10 11,76 16,56 1
40
% of NPIs to Total Investment 64. 84. 84. 43. 64. 26 )
investment
Provision for Unclassified .51
1,723 0.72
1,891 0.41
2,157 9.58
2,787 6.84
3,084 .7
10
Provision for Classified 3,0961 3,9467 6,0228 6,4368 8,173 8 .5
23
Investment .04 .00 .28 .10 .10 6
.6
Provision for Off Balance sheet 570 689 778 935 1,093 16
Investment
Share Information .15 0 .09 9 .02 2 .96 0 .23 1 8
.0
Exposures .42 .80 .50 .50 .40 6
.8
Number of Shares Outstanding 994,306, 1,044,0 1,064,9 1,064,9 1,064,9 1-
Earning per Share (Taka) 3. 2. 2. 2. 1. 8(0.
Book Value per Share (Taka) 428 20 21,75020 02,18521 02,18522 02,18522 0.
Market Price per Share (Taka) 241 193 172 224 269 454.
Price Earning Ratio (Times) .87. .88. .17. .39. .7
13 3
.15 .95 .28 .21 .66 ) 4.
4
Price Equity Ratio (Times) 81. 00. 30. 50. 3 1. 0.
8
Dividend per Share 6 4 5 2 .5 3
01 09 08 09 01 0
1
Cash Dividend (%) 154 158 136 152 7
15 5
-
Bonus Share 5
5. 6
2. -1 -9 -7 -8
Operating Performance Ratio .0 .0 .0 .0 .0
0 0
0 0 0 0 0
Net Profit Margin% 3. 3. 3. 3. 3. (0.
0 0
Investment /Deposit Ratio 89 89 88 86 87 0.
Return on Equity (ROE)% 148 104 107 104 2
8. 19
(1.
Return on Assets (ROA)% .90. .80. .90. .90. .50. (0. 6
7
.07. 2
.48. 3
.09. 5
.17. 26 )89
Cost of fund % 59 77 36 26 76. (1. 5
Cost /Income ratio in operating 43 49 44 50 484 16
(1.
75 67 50 05 1
0 )50
Other Information
business (%) .29 .43 .84 .21 .76 )45
Number of Branches 1540 1680 1822 1840 2010 ) 9.
Number of Employees 8
3, 1
3, 2
3, 0
3, 5
4, ) 9.
2
44 68 79 86 24 8
4
6 2 5 6 7 6
12
2.10 Internship Activity
I have worked as an intern at Al-Arafah Islami Bank PLC Limited. This three-month internship
program gives me the broad scopes to learn and get the real insight of practical banking works
which will help me in developing my future career. Through this three month I have an
opportunity to learn regular banking activities as well as corporate work activities which I never
learnt in the classroom. Moreover, besides the regular office work I have learned to deal with
different challenges, observing different customer behavior, financial documentation which helps
me to learn practical banking experience. Since, my first day I had the chance to handle multiple
task. Mainly I worked in general banking department but sometimes I also worked in loan and
recovery department throughout my three-month internship program.
2.11 Job Description and Responsibilities

➢ General Banking
➢ Foreign Exchange
➢ Cash Department
➢ Customer Relation
➢ Online Banking & Clearing
➢ Card Operation
➢ Investment
2.12 Learning Outcomes

➢ Adapt with new environment.
➢ Serving Clients and Stakeholders.
➢ Allocating time effectively.
➢ Helps to understand workplace behavior and customer’s attitude
➢ Developing individual responsibility.
➢ Increasing professionalism and helps to addressing colleagues and superiors
appropriately.
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2.13 Personal Recommendations
As an intern in Al-Arafah Islami Bank PLC. I have some personal recommendation for their
internship program:
➢ Management of Al-Arafah Islami Bank PLC should try to structure their internship
program.
➢ Al-Arafah Islami Bank PLC does not give any compensation to an intern. So, they should
plan basic remuneration for intern.
➢ In employee are very friendly but from my realization branch manager has less
involvement to communicate with their employees.
➢ In this three month they instruct me properly but they cannot give the proper information
about HR division.
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Chapter 3: Literature Review
3.1 HR Purpose & Role
3.2 Function of HRM
3.3 Strategic Planning, Employee Recruitment
3.4 Employee Training and Development
3.5 Performance Management
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3.1 HR Purpose & Role
In simple terms, an organization HRM strategy should maximize return on investment in the
organization. HRM helps an organization to manage employees as if they can increase their
productivity. HRM can replace employees to resources. Through proper HR practices
organization can get right person in the right place of the right position. HRM helps an
organization to achieve organizational goal.
3.2 Function of HRM

Human Resource Management is a management function concerned with hiring, motivating,
and maintaining the workforce in an organization. Human resource management deals with
issues related to employees such as hiring, training, development, compensation, motivation,
communication, and administration. Human resource management ensures the satisfaction of
employees and the maximum contribution of employees to the achievement of organizational
objectives.
3.2.1 Functions of Human Resource Management

Human Resource Management functions can be classified into the following three categories.
• Managerial Functions,
• Operative Functions, and
• Advisory Functions.
3.2.1.1 The Managerial Functions of Human Resource Management are as follows:

a. Human Resource Planning - In this function of HRM, the number and type of
employees needed to accomplish organizational goals are determined. Research is an
important part of this function, information is collected and analyzed to identify current
and future human resource needs and to forecast changing values, attitudes, and behavior
of employees and their impact on the organization.
b. Organizing - In an organization tasks are allocated among its members, relationships are
identified, and activities are integrated towards a common objective. Relationships are
established among the employees so that they can collectively contribute to the attainment
of the organization's goal.
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c. Directing - Activating employees at different levels and making them contribute
maximum to the organization is possible through proper direction and motivation. Taping
the maximum potential of the employees is possible through motivation and command.
d. Controlling - After planning, organizing, and directing, employees' actual performance is
checked, verified, and compared with the plans. If the actual performance is found to
deviate from the plan, control measures are required to be taken.
3.2.1.2 The Operative Functions of Human Resource Management are as follows:

a. Recruitment and Selection - Recruitment of candidates is the function preceding the
selection, which brings the pool of prospective candidates for the organization so that the
management can select the right candidate from this pool.
b. Job Analysis and Design - Job analysis is the process of describing the nature of a job
and specifying the human requirements like qualifications, skills, and work experience to
perform that job. Job design aims at outlining and organizing tasks, duties, and
responsibilities into a single unit of work for the achievement of certain objectives.
c. Performance Appraisal - Human resource professionals are required to perform this
function to ensure that the performance of employees is at an acceptable level.
d. Training and Development - This function of human resource management helps
employees acquire skills and knowledge to perform their jobs effectively. Training and
development programs are organized for both new and existing employees. Employees
are prepared for higher-level responsibilities through training and development.
e. Wage and Salary Administration - Human resource management determines what is to
be paid for different types of jobs. Human resource management decides employee
compensation which includes - wage administration, salary administration, incentives,
bonuses, fringe benefits, etc,.
f. Employee Welfare - This function refers to various services, benefits, and facilities that
are provided to employees for their well-being.
g. Maintenance - Human resources is considered an asset for the organization. Employee
turnover is not considered good for the organization. Human resource management
always tries to keep their best-performing employees with the organization.
h. Labour Relations - This function refers to human resource management interaction with
employees represented by a trade union. Employees come together and form a union to
obtain more voice in decisions affecting wages, benefits, working conditions, etc,.
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i. Personnel Research - Personnel research is done by human resource management to
gather employees' opinions on wages and salaries, promotions, working conditions,
welfare activities, leadership, etc,. Such researches help in understanding employee
satisfaction, employee turnover, employee termination, etc,.
j. Personnel Record - This function involves recording, maintaining, and retrieving
employee-related information like - application forms, employment history, working
hours, earnings, employee absents and presents, employee turnover, and other data related
to employees.
3.2.1.3 The Advisory Functions of Human Resource Management are as follows:

Human Resource Management is expert in managing human resources and so can give advice
on matters related to human resources of the organization. Human Resource Management can
offer advice to:
a. Advised to Top Management - The personnel manager advises the top management in
the formulation and evaluation of personnel programs, policies, and procedures.
b. Advised to Departmental Heads - The personnel manager advises the heads of various
departments on matters such as manpower planning, job analysis, job design, recruitment,
selection, placement, training, performance appraisal, etc.
3.3 Strategic Planning, Employee Recruitment

The goal of recruiting is to attract top talent so the right people apply to work for you. Being
strategic with your recruitment ensures the minimal amount of time, money, and energy is
spent in the process.
• Qualified candidates are in high demand. You must be thorough and move quickly to
secure the best people for the job. Having a strategic recruitment process helps you
attract, interview, and hire the right people before someone else does.
• The best candidates want information. Highly qualified people know the right
questions to ask to see if it will be a mutual fit, so you need to be prepared with the
information they’re looking for.
• First impressions are important. From the job description to your website, job boards,
review sites, and first interaction, you’re making an impression. Make it positive each
time.
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3.3.1 Strategic planning
Strategic plan helps to identify what an organization aspires to have and outline the necessary
steps required to succeed.
Strategic planning follows some steps as below –
▪ Analyzing the current state/situation/condition
▪ Defining the future state
▪ Determining the objectives and strategies
▪ Implementation and evaluation
Models of strategic planning process

There are 5 models which can be applied for strategic planning of an organization. These
models are different from each other; an entity selects the model best suited to the nature and
aim of that entity.
1. Basic strategic-planning process model
This model mostly suitable for an entity with no previous experience of project, small-scaled
or busy entity. Steps of this model are as follows:
▪ Identifying the purpose/aim/objective.
▪ Formulating some specific approaches & strategies
▪ Identifying plans of actions to achieve the specific strategy
▪ Monitoring & updating the plan
2. Issue-based strategic planning model
Basic plan model has been enhanced to the issue-based model, and followed by the
organizations which wants to further analyze the strategic planning; steps of which are as
follows:
▪ Analyzing SWOT
▪ Identifying major aspects and goals by the stakeholders
▪ Reviewing mission, vision &values of the organization
▪ Developing action plans (yearly where possible)
▪ Establishing budget
▪ Executing and monitoring.
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3. Alignment strategic model
This model is aimed to ensure alignment among mission of the company & its resources. This
model is suitable for the businesses which aspires to learn about the reasons for not achieving
the expected result and/or redefining/fine-tuning the objectives.
▪ Outlining mission, resources& actions
▪ Identifying what is working/suited and what requires changes
▪ Determining how the changes will take effect
▪ Accommodating the changes to strategic planning model
4. Scenario based strategic planning
It is mostly used with other models to confirm that the strategic planning and thinking is
accommodated into the process.
▪ Stakeholders forecasts different/variable scenarios that could happen and will
influence the organization
▪ Three possibilities: worst, best & reasonable case are discussed for each scenario
▪ Brainstorm organizational responses to each case in the best possible way
▪ Accommodating these into the strategic plan
5. Organic strategic planning model

This model is different from all of the above-mentioned methods. It is more natural method,
which follows a more linear &structured approach. It emphasizes relentless focus on shared
values, communication with consistency & discussion among different stakeholders. This
model includes:
▪ Clarifying cultural values of the company
▪ Articulating vision of the company
▪ Discussion on which processes are required to achieve the vision
▪ Establishing a culture which reminds that strategic planning is never-ending process
and always updated.
▪ Focusing on learning and reflection.
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Recruitment& Selection:
Recruitment refers to the process by which an entity ask/looks for applicants/applications and
attracts potential employees whereas selection is the process of identifying applicants through
checking and verifying knowledge &skills, capabilities and other characteristics which will
elp to achieve organizational goals.
The main aim of these processes is to employ minimum number of and highest possible
quality of employees at minimal cost, to fulfill the human resource requirements of the
organization. It has been apparent that entity which seeks to fill the vacancies as quick as
possible or which is reluctant to follow recruitment process like analyzing the job, is by far,
less considerate in applicants’ quality and quantity. Whereas entity which gives effort to
follow recruitment process, turns on more search modes than entity who does not.
3.4 Employee Training and Development

Although there are a few drawbacks in investing in employee training, the benefits from such
programs outweigh them significantly. The benefits include:
1. Addressing weaknesses
If a company owner evaluates his workforce closely, he is likely to find two or more of his
employees lacking certain skills. A training program presents an opportunity to instill the
needed skills in the employees. Similarly, a development program helps to expand the
knowledge base of all employees.
In doing so, company owners are able to bridge any gaps and weak links within their
organizations. In such a way, every employee will be in a position to fill in for his colleague
and handle any task with efficiency.
2. Improved performance of employees

An employee who receives training from time to time is in a better position to improve his
work productivity. Thanks to training programs, every employee will be well versed with the
safety practices and proper procedures to follow when carrying out basic tasks. A training
program also helps in building an employee’s confidence since he will gain a better
understanding of the industry and the responsibilities of his role.
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3. Boosts company profile and reputation
As mentioned earlier, employee training is not just good for the employees but also for the
firm. Conducting frequent training and development programs is one way of developing the
organization’s employer brand, thus making it a prime consideration for the top employees
working for competitor firms, as well as graduates. A company that trains its employees will
be more attractive to potential new employees, particularly those looking to advance their
skills.
4. Innovation
When employees receive consistent training and upskilling, it fosters their creativity. The
training programs help employees to be more independent and creative when they encounter
challenges in their work.
3.5 Performance Management

An ongoing, continuous process of communicating and clarifying job responsibilities,
priorities, performance expectations, and development planning that optimize an individual’s
performance and aligns with organizational strategic goals.
When people hear the words performance management, the fiscal year evaluation may be
their first thought. However, an effective performance management process involves much
more than just the annual evaluation.
Human Resources has established modules to assist in managing employee performance.
Human Resources recommends in addition to setting goals at the beginning of the evaluation
period and evaluating performance at the end of the evaluation period, that feedback sessions
are held throughout the year. These meetings include:
• Initial Meeting: Goal Setting and Development Planning – During the first
meeting, at the beginning of the evaluation period, the employee and supervisor will
mutually develop goals that align directly with the goals of the department, school and
university. A development plan that supports goal completion will also be developed
and agreed upon.
• Quarterly Feedback Sessions (October, January, April for the fiscal year
evaluation period) – During the feedback sessions, the employee and supervisor will
discuss the employee’s progress toward goal completion and any support that may be
needed.
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Chapter-4: Findings of the Study
4.1 Strategic Human Resource Planning
4.2 Human Resource Practice in Al-Arafah Islami Bank PLC.
4.3 Recruitment Sources
4.4 Internal Recruitment
4.5 External Recruitment
4.6 Training and Development
4.7 Evaluation of Training
4.8 Performance Appraisal system in Al-Arafah Islami Bank PLC Limited
4.9 Performance Appraisal
4.10 Compensation Policy
4.11 Bonus and Benefit
4.12 Leave Management:
4.13 Career Development in Al-Arafah Islami Bank PLC.
4.14 A Possible Career Path in HRD of Al-Arafah Islami Bank PLC.:
4.15 SWOT Analysis
23
Strategic HR Planning & Recruitment
Process of AIBL PLC
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4.1 Strategic Human Resource Planning
4.1.1 Assessing the current HR capacity
Based on the organization's strategic plan, the first step in the strategic HR planning process
is to assess the current HR capacity of the organization. The knowledge, skills and abilities of
your current staff need to be identified. This can be done by developing a skills inventory for
each employee.
The skills inventory should go beyond the skills needed for the particular position. List all
skills each employee has demonstrated. For example, recreational or volunteer activities may
involve special skills that could be relevant to the organization. Education levels and
certificates or additional training should also be included.
An employee's performance assessment form can be reviewed to determine if the person is
ready and willing to take on more responsibility and to look at the employee's current
development plans.
4.1.2 Forecasting HR requirements

The next step is to forecast HR needs for the future based on the strategic goals of the
organization. Realistic forecasting of human resources involves estimating both demand and
supply.
Questions to be answered include:
• How many staff will be required to achieve the strategic goals of the organization?
• What jobs will need to be filled?
• What skill sets will people need?
When forecasting demands for HR, you must also assess the challenges that you will have in
meeting your staffing need based on the external environment.
• How will the external environment impact our HR needs?
4.1.3 Gap analysis

The next step is to determine the gap between where your organization wants to be in the
future and where you are now. The gap analysis includes identifying the number of staff and
the skills and abilities required in the future in comparison to the current situation. You
should also look at all your organization's HR management practices to identify those that
could be improved or new practices needed to support the organization's capacity to move
forward.
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Questions to be answered include:
• What new jobs will we need?
• What new skills will be required?
• Do our present employees have the required skills?
• Are employees currently in positions that use their strengths?
• Do we have enough managers/supervisors?
• Are current HR management practices adequate for future needs?
4.1.4 Developing HR strategies to support organizational strategies

1. Training and development strategies
These strategies include:
• Providing staff with training to take on new roles
• Providing current staff with development opportunities to prepare them for future jobs
in your organization
Training and development needs can be met in a variety of ways. One approach is for the
employer to pay for employees to upgrade their skills. This may involve sending the
employee to take courses or certificates, or it may be accomplished through on-the-job
training. Many training and development needs can be met through cost effective techniques.
2. Recruitment strategies
• Recruiting new staff with the skill and abilities that your organization will need in the
future
• Considering all the available options for strategically promoting job openings and
encouraging suitable candidates to apply
Each time you recruit you should be looking at the requirements from a strategic perspective.
For example, if your organization has several supervisors that are nearing retirement age,
your recruitment strategy should include recruiting staff with the ability to assume a
supervisory role in the near future.
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3. Outsourcing strategies
• Using external individuals or organizations to complete some tasks
Many organizations look outside their own staff pool and contract for certain skills. This is
particularly helpful for accomplishing specific, specialized tasks that don't require ongoing
full-time work.
Some organizations outsource HR activities, project work or bookkeeping. For example,
payroll may be done by an external organization rather than a staff person, a short-term
project may be done using a consultant, or specific expertise such as legal advice may be
purchased from an outside source.
When deciding to outsource to an individual, ensure you are not mistakenly calling an
employee a consultant. This is illegal and can have serious financial implications for your
organization. To understand the differences between employees and self-employed people,
visit the Canada Revenue Agency's website.
Each outsourcing decision has implications for meeting the organization's goals and should
therefore be carefully assessed.
4. Collaboration strategies
The strategic HR planning process may lead to indirect strategies that go beyond your
organization. By collaborating with other organizations you may have better success at
dealing with a shortage of certain skills.
Examples of collaboration include:
• Working together to influence the types of courses offered by educational institutions
• Working with other organizations to prepare future leaders by sharing in the
development of promising individuals
• Sharing the costs of training for groups of employees
• Allowing employees to visit other organizations to gain skills and insight
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5. Restructuring strategies
If your assessment indicates that there is an oversupply of skills, there are a variety of options
open to assist in the adjustment.
• Reducing staff either by termination or attrition
• Regrouping tasks to create well designed jobs
• Reorganizing work units to be more efficient
Termination of workers gives immediate results. Generally, there will be costs associated
with this approach depending on your employment agreements. Notice periods are
guaranteed in all provinces. Be sure to review the Employment and Labour Standards in your
province or territory to ensure that you are compliant with the legislation.
4.2 Human Resource Practice in Al-Arafah Islami Bank PLC.

Human Resources the greatest strength of Al-Arafah Islami Bank PLC Limited have the ability to
go beyond and constantly bring about changes for the betterment and success to achieve the
Bank’s goal. Human Resource division has the responsibility of developing, retaining and
attracting talents and ensures the “Right Person in Right Place in Right Time with Right Position”
which helps to insure the organizational long term growth by its effective employee’s
involvement. Their recruitment & selection process, compensation, training and development,
performance appraisals are designed and controlled by the HR department. The HR department of
Al-Arafah Islami Bank PLC is also highly equipped with the latest technological support which
helps to enrich their knowledge and skills. Al-Arafah Islami Bank PLC has a central controlled
HR system, so the bank uses a HRD system named Core banking software designed by Flora
which helps to support all kinds of HR needs both for the employee and HR officials. All branch
offices employees can communicate within the HRD system for any kind of query leave
application, transfer order, discharge order, training, salary and others with the head office. Al-
Arafah Islami Bank PLC., a bank with its own training institute named Al-Arafah Islami Bank
PLC Training Institute (Al-Arafah Islami Bank PLC.) to train its employees for any kind of
banking trainings compulsory to develop their effectiveness. The HR arranges different training
programs for their employees of different branch office and arranges trainings for them, which
held in Al-Arafah Islami Bank PLC Training Institute (Al-Arafah Islami Bank PLC.) or at
different training institutes like BIBM, BBTA etc. The bank has a planning and administrative
department (under HRD) and this department mainly responsible for overall planning process.
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4.3 Recruitment Sources
The need for recruitment is felt especially whenever a new post is created due to expansion of
the bank. Succession planning also calls for recruitment sometimes if the vacant post cannot
be filled from within. There is quite a number of recruiting sources used by this bank. SIBL
advertises in the newspaper to generate applications for different entry-level post. The
selection process in SIBL is no different from what is practiced in most organizations. The
process starts with initial screening and a person is finally selected through a final interview.
The current selection and recruitment process, its shortcomings are elaborated in the next
chapter as this is the key area of the report. The need for recruitment is felt especially
whenever a new post is created due to expansion of the bank. Succession planning also calls
for recruitment sometimes if the vacant post cannot be filled from within. There is quite a
number of recruiting sources used by this bank. SIBL advertises in the newspaper to generate
applications for different entry-level post. The selection process in SIBL is no different from
what is practiced in most organizations. The process starts with initial screening and a person
is finally selected through a final interview. The current selection and recruitment process, its
shortcomings are elaborated in the next chapter as this is the key area of the report. The need
for recruitment is felt especially whenever a new post is created due to expansion of the bank.
Succession planning also calls for recruitment sometimes if the vacant post cannot be filled
from within. There is quite a number of recruiting sources used by this bank. SIBL advertises
in the newspaper to generate applications for different entry-level post. The selection process
in SIBL is no different from what is practiced in most organizations. The process starts with
initial screening and a person is finally selected through a final interview. The current
selection and recruitment.
For SIBL Employee Selection is the process of putting right men on right job. It is a
procedure of matching organizational requirements with the skills and qualifications of
people. HR relies on the use of up-to date methods for selecting and appointing candidates for
a job.
Each association has the choice of picking the contender for its enrollment forms from two
sorts of sources: inner and outer sources. The sources inside the association itself (like
exchange of workers from one office to other, advancements) to fill a position are known as
the inner wellsprings of enlistment. Enrollment hopefuls from the various sources (like
outsourcing organizations and so forth) are known as the outer wellsprings of enlistment.
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4.4 Internal Recruitment
Internal recruitment looks for candidates for positions from inside the organization. The
different inward sources include:
4.4.1 Promotions and Transfers:

Promotion is a compelling means utilizing work posting and faculty records. Work posting
requires informing empty positions by posting sees, circling distributions or declaring at
workforce conferences and welcoming representatives to apply. Work force records find
representatives who are doing tasks beneath their instructive capabilities or aptitude levels.
Advancements has numerous focal points like it is great advertising, assembles confidence,
energizes able people who are eager, enhances the likelihood of good choice since data on the
individual's execution is promptly accessible, is less expensive than going outside to select,
those picked inside are acquainted with the association consequently diminishing the
introduction time and vitality furthermore goes about as a preparation gadget for creating
center level and top-level supervisors. Be that as it may, advancements confine the field of
determination keeping new blood and thoughts from entering the association. It likewise
prompts inbreeding in the association. Exchanges are additionally essential in furnishing
workers with a wide based perspective of the association, fundamental for future
advancements.
4.4.2 Employee Referrals

Employees can grow great prospects for their families and companions by familiarizing them
with the upsides of an occupation with the organization, outfitting them with acquaintance
and empowering them with apply. This is an extremely successful means the same number of
qualified individuals can be come to easily to the organization. Alternate favorable
circumstances are that the workers would bring just those referrals that they feel would have
the capacity to fit in the association taking into account their own particular experience. The
association can be guaranteed of the unwavering quality and the character of the referrals.
Along these lines, the association can likewise satisfy social commitments and make
goodwill.
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4.4.3 Previous Employees
These incorporate resigned representatives why should willing work on low maintenance
premise, people who left work and will return for higher remunerations. Indeed, even
conserved workers are taken up at the end of the day. The favorable position here is that the
general population are as of now known not association and there is no compelling reason to
discover their past execution and character. Additionally, there is no need of an introduction
program for them, since they are acquainted with the association.
4.4.4 Dependents of deceased employees

Usually, banks tail this approach. On the off chance that a representative bites the dust,
his/her companion or child or little girl is enrolled in their place. This is typically a viable
approach to satisfy social commitment and make goodwill.
4.4.5 Reviews
When administration confronts an issue, which can be settled just by an administrator who
has continued on long abandon, it might de chose to review that persons after the issue is
fathomed, his leave might be amplified.
4.4.6 Retirements
Now and again, administration may not discover reasonable competitors set up of the person
who had resigned, after commendable administration. Considering the present situation,
administration may choose to call resigned supervisors with new expansion.
4.4.7 Inside warning (promotion)

Sometimes, administration issues an interior notice for the advantage of existing
representatives. Most workers know from their own experience about the necessity of the
occupation and what kind of individual the organization is searching for. Regularly workers
have companions or colleagues who meet these necessities. Appropriate persons are
delegated at the empty posts.
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4.5 External Recruitment
4.5.1 Expert or Trade Associations:
Many affiliations give position administration to its individuals. It comprises of assembling
employment seeker's rundowns and giving access to individuals amid territorial or national
traditions. Additionally, the productions of these affiliations convey ordered commercials
from managers intrigued by selecting their individuals. These are especially helpful for
pulling in very taught, experienced or gifted staff. Likewise, the scouts can zero on in
particular employment seekers, particularly for difficult to-fill specialized posts.
4.5.2 Advertisements
It is a famous strategy for looking for volunteers, the same number of selection
representatives lean toward ads in view of their wide reach. Need promotions depict the
occupation advantages, distinguish the business and advise those intrigued how to apply.
Daily paper is the most widely recognized medium yet for exceptionally particular enlisted
people, notices might be set in expert or business diaries. Commercials must contain
appropriate data like the employment content, working conditions, area of occupation, pay
including incidental advantages, work particulars, development perspectives, and so forth.
The ad needs to offer the organization and employment are ideal for the applicant.
Enrollment promotions can likewise serve as corporate ads to fabricate organization picture.
It likewise practical.
4.5.3 Employment Exchanges

Employment Exchanges have been set up everywhere throughout the nation in respect to the
procurement of the Employment Exchanges (Compulsory Notification of Vacancies) Act,
1959. The Act applies to every single mechanical foundation having 25 laborers or all the
more each. The Act requires all the mechanical foundations to inform the opening before they
are filled. The real elements of the trades are to expand the pool of conceivable candidates
and to do the preparatory screening. In this manner, occupation trades go about as a
connection between the businesses and the planned workers. These workplaces are especially
valuable to in enlisting hands on, professional and specialized laborers.
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4.5.4 Contractual workers
They are utilized to enroll easygoing specialists. The names of the specialists are not entered
in the organization records and, to this degree; troubles experienced in keeping up perpetual
laborers are maintained a strategic distance from.
4.5.5 Specialists
They are in the calling for enlisting and selecting administrative and official staff. They are
helpful as they have across the country contacts and loan polished skill to the enlisting
procedure. They likewise keep planned manager and representative unknown. Be that as it
may, the expense can be an obstacle variable.
4.5.6 Head Hunters

They are helpful in specific and gifted hopeful working in a specific organization. A
specialist is sent to speak to the enlisting organization and offer is made to the hopeful. This
is a helpful source when both the organizations included are in the same field, and the
representative is hesitant to take the offer since he reasons for alarm, that his organization is
trying his reliability.
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Training and Development
34
4.6 Training and Development
Training is the systematic process of providing an opportunity to learn KSA (knowledge, skills
and ability) for current or future job. Training is not only for the newly recruited employee but
also for the existing employee of the organization. Actually it can provide employee with
knowledge and skills to perform more effectively and prepare them more productive. So, training
help to bridge the gap between theoretical knowledge and knowledge required for the profession.
Training process:
Training is the process of teaching new employees about basic skills so that they can implement it
on their jobsite. It is a process for providing employees with basic idea or basic background
information about the firm that is called Training.
Training processes are:
1. Training needs analysis:

i) Organizational analysis: Identify training needs of the organization according
to its long term goals- set the training goals.
ii) Job analysis: Identify training needs according to job description and job
specification; specify skills/knowledge/behavior to be trained.
iii) People analysis: Identify people that need training and identify potential
trainees.
2. Instructional design: Set training goals, determine what to train identifies trainees and
select trainers, choose training materials, determine training methods, develop training
budget.
3. Validation: Validate the training program before implementation. For this, conduct
the program with small number of trainees to tests its effect.
4. Implementation: Implementation means group-wise work. Appoint manager for the
training program, develop managing guideline for the program, and provide logistic
supply.
5. Evaluation: The whole training process is evaluated after the training.
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Some major training providers:
• Social Islami BTI (National Credit and Commerce Bank Training Institute)
• BIBM (Bangladesh Institute of Bank Management)
• BBTA (Bangladesh Bank Training Academy)
• SCB (Standard Chartered Bank)
Training Institute at Al-Arafah Islami Bank PLC.:

At the very beginning Al-Arafah Islami Bank PLC. Training Institute was known as NCL
Training & Research Institute (NCLTR). In the year 1993 NCL emerged in the Al-Arafah Islami
Bank PLC Limited and in accordance with that NCLTR renamed with Al-Arafah Islami Bank
PLC Training & Research Institute (Al-Arafah Islami Bank PLC.). Al-Arafah Islami Bank PLC.
used to operate their training at Green road in 1994 with the objective to train up their internal
human resource. Afterwards with the introduction of Human Resource Division in Head Office,
Al-Arafah Islami Bank PLC. again remained with Al-Arafah Islami Bank PLC Training Institute
(Al-Arafah Islami Bank PLC.) and started its journey in January 2002.
Function of Al-Arafah Islami Bank PLC.:

Al-Arafah Islami Bank PLC training institute has implemented need based training program and
trained the officials of the bank. In addition to foundation training course for the Junior/ Assistant
officer and newly recruited management trainee officer, Training institute conduct several
workshops on particular issue to develop competency skills of the employees.
Training Techniques followed by Al-Arafah Islami Bank PLC.:

After analyzing the training needs Al-Arafah Islami Bank PLC. design training program for their
newly recruited and existing employee. Training and development methods used by most of the
organization can be two types:
✓ On the job training

✓ Off the job training
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On the job training:
In this method the Al-Arafah Islami Bank PLC head office assigned the newly recruited
employee in actual work situation and develops their productivity. Apprenticeship, job rotation
and special assignment are included in this training program.
• Job Rotation
Job rotation is a horizontal process of rotating job responsibilities with the various departments in
the organization. Al-Arafah Islami Bank PLC practices job rotation among the managers so that
they can have an over understanding of the functioning of different departments.
• Coach or Understudy
Managers are also mentored by supervisors and senior officer who educate them about the job.
This not only ensures that the employees are learning the work from observing but also has
access to immediate feedback on pressure points of executing the job.
On the job training can also be called apprenticeship program where the trainee or the
probationary officer put under the supervision of senior officers and branch manager.
Off the job training:

Training institution of Al-Arafah Islami Bank PLC. applies off the job training for their newly
recruited and existing officers. Experts from outside Al-Arafah Islami Bank PLC conduct
different types of seminars and workshops for the employees. Since it is a banking industry,
experts within the Bangladesh Bank and industry specialist also provide with useful, relevant
information from their job knowledge and experiences. Under this approach Lecture method is
commonly used. Lecture focus on understanding rather than emitting knowledge and skills
through reading assignments and experience. This kind of training is given based on the necessity
like enforcement of new laws and regulation, introduction of new product, etc. Sometimes off the
job training is given to update the knowledge and to get promoted in a new post. New employees
are given orientation course and foundation course. Training institute of Al-Arafah Islami Bank
PLC. uses many other techniques under this method like conference, demonstration, case studies,
programmed instruction and computer based training along with classroom lecture.
37
Training Materials
Materials those are used by instructors, facilitators, and students in a training environment is
called training materials. These materials store the information needed by the learner to perform
tasks and helps the trainers and the trainees to make the training more effective.
The materials that Al-Arafah Islami Bank PLC. uses for providing training are given below:
1. Training manuals
2. Training equipments
As we already know Al-Arafah Islami Bank PLC. provides the employees with on the job, lecture
based, off the job training etc. For all kinds of training they use white board, projectors, training
curriculum, software, handouts, lectures, computer, internet, power point remote, sound system
and other general things.
4.7 Evaluation of Training

Training should be evaluated several times during the process. Employees are evaluated by
comparing their newly acquired skills with the skills defined by the goals of the training
program. Any discrepancies are noted and adjustments are made to the training program to
enable it to meet specified goals. Many training programs fall short of their expectations
simply because the administrator fails to evaluate its progress until it is too late. Timely
evaluation prevents the training from straying from its goals. Training evaluation is a
systematic method for collecting, analyzing, and using information to answer questions about
projects, policies and particularly about the effectiveness and efficiency of those projects,
policies or programs. Training evaluation can involve both quantitative and qualitative
methods of social research.
Evaluating the effectiveness of workplace training involves examining the following areas:
the results of the training in terms of visible productivity or efficiency, whether or not those
trained changed their behavior as a result of the training, the knowledge that the trainees
gained from the training, and the reaction of the trainees to the program. Assuming that Al-
Arafah Islami Bank PLC. uses the Kirk Patrick’s Model, to evaluate the effectiveness of the
training program.
38
The four stages of the Kirk Patrick’s Model are as follows:
✓ Reaction
✓ Learning
✓ Behavior
✓ Results
Level 1: Reaction
Reaction measures whether the employees the training, the trainer and the facilities.Al-Arafah
Islami Bank PLC. usually measure it by a questionnaire or they can take it as a verbal interview.
Then they judge regarding the employee comments; if employees have less than favorable
reactions to the program, it is unlikely those other employees will have interest in the training or
that employees attending the training received anything of value from it. Since the group of
trainee is eventually large in Al-Arafah Islami Bank PLC they are usually does the questionnaire
process to get the feedback.
Level 2: Learning
Learning measures whether the employees know more than they did prior to undertake the
training. Knowledge based training can be measured by tests, skill based training can be through
demonstration or simulation. If employees did not learn anything than obviously we can expect
no change in their behavior. At times, the management also arranges performance tests where the
trainees perform certain tasks or demonstrate certain skills that they have learned from the
program.
Level 3: Behavior
Behavior measures what employees do on the job after the training. In this test Al-Arafah Islami
Bank PLC check the status whether employees are doing things differently or solving a problem
in a different ways or not. The answers can be achieved by appraising their performance and the
performance appraisal can be conducted by the supervisors, peers, subordinates or clients to
receive a 360 degree feedback for better understanding.
39
Level 4: Results
Evaluation of results looks at the overall outcomes of the training and the impact that the training
has had on productivity, efficiency, quality, customer service or any other mean. As the last stage
the management decides whether the training program and the skills or knowledge gained by the
employees from those programs have improved the workforce and the organization as a whole.
This can be determined by measuring rate of turnover of the employees, morale of the workforce,
productivity of the employees, level of profit, customer complaints, quality of the employees as
well as the particular departments of the organization.
4.8 Performance Appraisal system in Al-Arafah Islami Bank PLC Limited

Performance appraisal is the process of determining and communicating to an employee how he /
she is performing on the job and ideally, establishing a plan of improvement. It is very much
critical because it helps the managers to take the administrative decisions effectively relating to
promotions, payoffs and merit pay increases of the employees. So, performance appraisal is a
must for all organizations. This report helps to evaluating the existing performance appraisal
systems of Al-Arafah Islami Bank PLC Limited. So, it is an annual review of an employee’s
overall contributions to the organization by his/her manager.
Al-Arafah Islami Bank PLC conducts a performance appraisal program to evaluate performance
of executives, officers, and staffs. Regular employee’s performances are evaluated annually. The
newly recruited management trainee officers and are to undergo training on basic training course
both practical and theoretical for three months from their joining. Evaluation of training for
management trainee officer contains evaluation criteria like direct functions and indirect
functions. Direct functions include general banking, credit management and investment and
foreign exchange etc. and indirect functions include dress sense, punctuality, attendance, manner,
departments, behavior with senior colleagues, Behavior with Clients, communication skills,
accuracy in Work, eagerness to Learn, ability to match with new things, innovativeness,
convincing Power, ability to perform under stress. The evaluation is done according to Avg. /Poor
Average, Good, Very good and Excellent on criteria-wise performance of each trainee. Actually
Al-Arafah Islami Bank PLC use in the graphic rating scale method, a rater describe an employee
as falling at 5 point on a performance scale, such as, poor, average, good, very good, excellent.
The scale point is assigned (5 points for excellent to 1 for poor). Total score for an employee can
be computed by summing the rating across all dimensions rated.
40
Performance Appraisal
41
4.9 Performance Appraisal
Purpose of performance appraisal is to know more about the workforce top to bottom
condition clearly that how much they are diligent, hardworking, industrious, and meticulous
for the organization. So some areas they need to improve which are
▪ Performance appraisal form should have three and four categories depending on the
designation of executives and officers
▪ For branch manager, regional head, divisional head will be different.
▪ Form should have to be different for head office and in branch level.
▪ Quality and quantity of desk works are not define and acknowledge in the form
▪ Existing measureable performance have to be updated according to the business
strategy and modern requirement
▪ Marking system needs to be updated.
▪ There is no scope for assesses to make agreement or disagreement with the
performance rating of the supervisor.
▪ Quality and reputation of educational institute especially for university is not
addressed
▪ There are areas of favoritism during performance appraisal.
▪ Real performance cannot be identified.
▪ Absence of individual instant reward for extra ordinary performance.
▪ This appraisal system should be happened at least twice in a year where this appraisal
system happened only in a year.
▪ There also some other issues which needs to consider further consideration
42
Compensation Policy
43
4.10 Compensation Policy
Al-Arafah Islami Bank PLC. offer attractive compensation package for their employees which is
divided into two parts:
Direct Compensation
Salaries: Al-Arafah Islami Bank PLC Compensation based on a longer time period, a month.
Incentives: They offer cash incentives which depend on bank revenue, target they fulfill.
Indirect Compensation
Benefits: Forms of indirect compensation those are financial in nature like provident fund
gratuity fund etc.
Services: Al-Arafah Islami Bank PLC provides extra facility and service for their employees
which includes transport facility, loan facility, credit card facility etc.
4.11 Bonus and Benefit

I. Performance Bonus
Al-Arafah Islami Bank PLC provides performance bonus based on their organization’s profit,
higher authority and management committee will declare a certain percentage of the pre-tax profit
as Performance Bonus.
II. Festival Bonus

All permanent employees get two bonuses each year. One in Eid-ul-Fitr and another during Eid-
ul-Azha only for Muslims and employees of different religion gets that bonus during their
respective religious festivals. Al-Arafah Islami Bank PLC also given another festival bonus in
Pohela Baishakh The amount is usually dependent on the basic salary of the employee.
III. Gratuity fund

It refers terminal benefit that an employee receives at the time of retirement or resignation.Al-
Arafah Islami Bank PLC has given it to regular and permanent employees who have completed at
least 10 years continuous service. It is calculated based on last month’s basic salary multiplied by
the years of service completed.
44
4.12 Leave Management:
1. Annual/Earned Leave
Type of leave that is earned through working in the organization. Any leave not taken can be
encased at the time of leaving the organization. For Example Al-Arafah Islami Bank PLC
provides 30 days of leave of which 10 days must be taken as consecutive leave each year.
2. Casual/Sick Leave
Usually Al-Arafah Islami Bank PLC employees can take 10days of sick leave including non-
working days.
However, the time can be extended depending on the severity of the illness.
3. Maternity Leave
Actually this leave given to female employees who have passed one year in the organization for a
period of 6 months. This leave is given with pay and can be extended without payment of salary.
Usually it is not given more than twice in an organization.
4. Extra Ordinary Leave:
This type of leave given to employee for any kind of unavoidable and unusual situation for
example, marriage and taking leave to pursue on medical treatment in abroad.
4.13 Career Development in Al-Arafah Islami Bank PLC.

Career development is the process of an employee capability and potential for advancement and
career change. So, it’s a systematic process of guiding the movement of human resources of an
organization through different hierarchical positions.
Al-Arafah Islami Bank PLC. provides an attractive career development opportunity for their
employees. Developing manpower, proper training method and restructured the job are the most
important priorities of Al-Arafah Islami Bank PLC.. Al-Arafah Islami Bank PLC Limited
recognizes that a productive and motivated work force is a prerequisite to leadership with its
customers, its shareholders and in the market it serves. Al-Arafah Islami Bank PLC treats every
employee with dignity and respect in a supportive environment of trust and openness where
people of different backgrounds can reach their full potential. The bank’s human resources policy
emphasize on providing job satisfaction, growth opportunities, and due recognition of superior
performance.
45
4.14 A Possible Career Path in HRD of Al-Arafah Islami Bank PLC.:
Managing Director
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Officer
Officer
Junior Officer
Assistant Officer
46
4.15 SWOT Analysis
Strength:
➢ Al-Arafah Islami Bank PLC provides quality service to the customers compared to its
other bank.
➢ Experienced bankers and corporate personnel have formed the management.
➢ Al-Arafah Islami Bank PLC follows strong recruitment and selection policy. They recruit
talented candidates from the market through proper selection process.
➢ Recently they offer online banking service which will enable it to automate all of its
operations.
➢ Al-Arafah Islami Bank PLC highly emphasizes on training and development of
employees which helps to improve employee personal development and increase
organizational productivity.
➢ Al-Arafah Islami Bank PLC has already achieved goodwill which helps to keep the
valuable clients.
Weaknesses:
➢ The bank has only a few ATM booths and not in proper places. So, the scope of
using ATM card is limited.
➢ In Al-Arafah Islami Bank PLC HR division is a very small sector of the organization
taking into consideration the large number of employees.
➢ Computer and internet facility for all the officers is not available. Moreover, all the
officers have no computer knowledge.
➢ The bank has not any research and development division.
Opportunities:
➢ The bank can introduce more innovative and modern products and services for their
customers.
➢ The bank can offer micro credit business for individuals and small businesses.
➢ It can diversify its portfolio by taking new sector.
➢ Many branches can be opened to reach the bank’s services to the remote areas.
➢ It can recruit more efficient and experienced persons to give fast and efficient
service to the customers.
47
Threats:
➢ In Bangladesh banking sector is highly competitive because there are so many private
banks, foreign multinational bank within the country. So, Al-Arafah Islami Bank
PLC needs to periodically analysis their HR plan and policies so that they can recruit
best talent.
➢ Employee turnover rate is high.

➢ The common attitude of Bangladeshi clients is default.
➢ Multinational as well as the fast growing local banks with modern products and
services are capturing huge market within a short period and resulting to switch over
the existing customers of the bank
➢ Bangladesh Bank sometimes requires Private Commercial Banks to be abided by
such rules and regulations which are not suitable for every commercial bank.
48
Chapter-5: Data Analysis
49
Table 01: The organization has clear business and operational objectives that are understood
by all employees.
Particular Respondents Percentage

Strongly agree 11 45 %
Agree 3 15 %
Neutral 4 20 %
Disagree 2 10 %
Strongly Disagree 0 0%
Total 20 100%
50%
45%
45%
40%
35%
30%
25%
20%
20%
15%
15%
10%
10%
5%
0%
0%
Strongly agree Agree Neutral Disagree Strongly Disagree
Figure 01: The organization has clear business and operational objectives that are understood
by all employees.
Analysis: The organization has clear business and operational objectives that are understood
by all employees in this question 45% of respondents Strongly agree, 15% of respondents
Agree, Neutral 20% of respondents, disagree 10%, and 0% respondents strongly Disagree
with this question.
50
Table 02: Employees understand how their individual efforts contribute to business success.
Agree 3 15 %
Neutral 2 10 %
Disagree 4 20 %
Total 20 100%
50%
45%
45%
40%
35%
30%
25%
20%
20%
15%
15%
10%
10%
5%
0%
0%
Figure 02: Employees understand how their individual efforts contribute to business success.
Analysis: Employees understand how their individual efforts contribute to business success in
this question 45% of respondents Strongly agree, 15% of respondents Agree, Neutral 10% of
respondents, disagree 20%, and 0% respondents strongly Disagree with this question.
51
Table 03: Management shares business strategies with all employees.

Agree 3 15 %
Neutral 3 15 %
Disagree 3 15 %
Total 20 100%
50%
45%
45%
40%
35%
30%
25%
20%
15%
15% 15% 15%
10%
5%
0%
0%
Figure 03: Management shares business strategies with all employees.
Analysis: Management shares business strategies with all employees in this question 45% of
respondents Strongly agree, 15% of respondents Agree, Neutral 15% of respondents, disagree
15%, and 0% respondents strongly Disagree with this question.
52
Table 04: Management shares business results with employees on a regular basis.

Agree 2 10 %
Neutral 3 15 %
Disagree 3 15 %
Strongly Disagree 2 10 %
Total 20 100%
40%
15%
15%
10%
10%
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY

DISAGREE
Figure 04: Management shares business results with employees on a regular basis.
Analysis: Management shares business results with employees on a regular basis in this
question 40% of respondents Strongly agree, 10% of respondents Agree, Neutral 15% of
53
Table 05: Management has put in place a clear set of values that underpin business performance.
Agree 6 30 %
Neutral 4 20 %
Disagree 2 10 %
Total 20 100%
45%
40%
40%
35%
30%
30%
25%
20%
20%
15%
10%
10%
5%
0%
0%
Figure 05: Management has put in place a clear set of values that underpin business
performance.
Analysis: Management has put in place a clear set of values that underpin business
performance in this question 40% of respondents Strongly agree, 30% of respondents Agree,
Neutral 20% of respondents, disagree 10%, and 0% respondents strongly Disagree with this
question.
54
Table 06: Management measures business performance against objectives.

Agree 6 30 %
Neutral 2 10 %
Disagree 0 0%
Total 20 100%
70%
60%
60%
50%
40%
30%
30%
20%
10%
10%
0% 0%
0%
Figure 06: Management measures business performance against objectives.
Analysis: Management measures business performance against objectives in this question

60% of respondents Strongly agree, 30% of respondents Agree, Neutral 10% of respondents,
disagree 0%, and 0% respondents strongly Disagree with this question.
55
Table 07: Management actively seeks feedback from clients and customers with a view to Improving
service.
Agree 2 10 %
Neutral 2 10 %
Disagree 0 0%
Total 20 100%
90%
80%
80%
70%
60%
50%
40%
30%
20%
10%
10% 10% 0% 0%
0%
Figure 07: Management actively seeks feedback from clients and customers with a view
Improving service.
Analysis: Management actively seeks feedback from clients and customers with a view
Improving service in this question 80% of respondents Strongly agree, 10% of respondents
Agree, Neutral 10% of respondents, disagree 0%, and 0% respondents strongly Disagree with
this question.
56
Table 08: Management is constantly looking for ways to improve products and services.
Agree 4 20 %
Neutral 2 10 %
Disagree 3 15 %
Total 20 100%
60%
50%
50%
40%
30%
20%
20%
15%
10%
10%
5%
0%
Figure 08: Management is constantly looking for ways to improve products and services.
Analysis: Management is constantly looking for ways to improve products and services in
57
Table 09: Management is disciplined with employee performance feedback and appraisals.
Agree 2 10 %
Neutral 2 10 %
Disagree 4 20 %
Total 20 100%
70%
60%
60%
50%
40%
30%
20%
20%
10%
10% 10%
0%
0%
Figure 09: Management is disciplined with employee performance feedback and appraisals.
Analysis: Management is disciplined with employee performance feedback and appraisals in

58
Table 10: Management puts a great deal of effort into hiring new employees who will fit into the
organization.
Agree 9 45 %
Neutral 2 10 %
Disagree 2 10 %
Total 20 100%
50%
45%
45%
40%
35%
35%
30%
25%
20%
15%
10%
10% 10%
5%
0%
0%
Figure 10: Management puts a great deal of effort into hiring new employees who will fit into
the organization.
Analysis: Management puts a great deal of effort into hiring new employees who will fit into
the organization in this question 35% of respondents Strongly agree, 45% of respondents
Agree, Neutral 10% of respondents, disagree 10%, and 0% respondents strongly Disagree
with this question.
59
Table 11: Management does an excellent job of communicating with employees on a host of issues.
Agree 6 30 %
Neutral 4 20 %
Disagree 2 10 %
Total 20 100%
60%
50%
50%
40%
30%
30%
20%
20%
10%
10%
0%
0%
Figure 11: Management does an excellent job of communicating with employees on a host of
issues.
Analysis: Management does an excellent job of communicating with employees on a host of

issues in this question 50% of respondents Strongly agree, 30% of respondents Agree,
Neutral 20% of respondents, disagree 10%, and 0% respondents strongly Disagree with this
question.
60
Table 12: Management encourages and rewards specific behaviors.
Agree 6 30 %
Neutral 4 20 %
Disagree 2 10 %
Strongly Disagree 2 10 %
Total 20 100%
35%
30%
30% 30%
25%
20%
20%
15%
10%
10% 10%
5%
0%
Figure 12: Management encourages and rewards specific behaviors.
Analysis: Management encourages and rewards specific behaviors in this question 30% of
61
Table 13: Management is quick to deal with problem employees/ performance.
Agree 6 30 %
Neutral 1 5%
Disagree 1 5%
Total 20 100%
70%
60%
60%
50%
40%
30%
30%
20%
10%
5% 5% 0%
0%
Figure 13: Management is quick to deal with problem employees/ performance.
Analysis: Management is quick to deal with problem employees/ performance in this

question 60% of respondents Strongly agree, 30% of respondents Agree, Neutral 5% of
62
Table 14: Management rewards employees for business success.
Agree 4 20 %
Neutral 6 30 %
Disagree 1 5%
Total 20 100%
45%
40%
40%
35%
30%
30%
25%
20%
20%
15%
10%
5%
5% 5%
0%
Figure 14: Management rewards employees for business success.
Analysis: Management rewards employees for business success in this question 40% of
63
Table 15: Management encourages all employees to challenge how well things are done.
Agree 4 20 %
Neutral 1 5%
Disagree 1 5%
Total 20 100%
80%
70%
70%
60%
50%
40%
30%
20%
20%
10%
5% 5% 0%
0%
Figure 15: Management encourages all employees to challenge how well things are done.
Analysis: Management encourages all employees to challenge how well things are done in
64
Table 16: Employee morale is generally high - most of the time.
Agree 6 30 %
Neutral 3 15 %
Disagree 0 0%
Total 20 100%
60%
55%
50%
40%
30%
30%
20%
15%
10%
0% 0%
0%
Figure 16: Employee morale is generally high - most of the time.
Analysis: Employee morale is generally high - most of the time in this question 55% of
65
Chapter-6: Findings, Recommendation & Conclusion
6.1 Findings
6.2 Recommendations
6.3 Conclusion
66
6.1 Findings
➢ Al-Arafah Islami Bank PLC has a structured HR team.
➢ They offer attractive compensation benefit for their employees.
➢ The relation between employee and management level are very good.
➢ They offer each and every employee for their service benefit after completed ten or
fifteen years.
➢ They give festival bonus, incentives and other facilities to the employees in a year.
➢ Al-Arafah Islami Bank PLC provides foundation training for each and every employee.
➢ IT and Technical support team has to be more aware of customer care service.
6.2 Recommendations
Though Al-Arafah Islami Bank PLC. is a well-established Commercial bank in Bangladesh and
running successfully in the domestic market however we think the bank should improve some of
its policy process regarding general banking, recruitment, training and development program.
➢ Al-Arafah Islami Bank PLC should open more ATM booths.

➢ They need to be more diversification among its products and services.
➢ All of these organizations must use open up recruiting efforts to the external community
like job fair through external search. They can participate in career and job fairs and open
houses and must develop and support educational programs and become more involved
with educational institution that can refer more diverse talent pool.
➢ They need to focus proper strategic planning which helps to figure out forecasting
demand of the employee and try to prevent shortage of employee or overstaffing.
➢ Successful employment planning is designed to identify an organization human resources
need. Al-Arafah Islami Bank PLC Limited can establish HRIS software to keep
employees update; which type of qualified employees they have; forecast future
requirement of qualified employees like other MNC Bank.
➢ Al-Arafah Islami Bank PLC use Flora banking software which is not comprehensive
banking software. So, they must need comprehensive and advanced banking software.
➢ 360 degree performance appraisal method must be needed as result branch manager
supervisor and subordinate can evaluate each other’s performance which is a very
important for the department of HR Division.
67
6.3 Conclusion
In conclusion, even though Al-Arafah Islami Bank PLC HR policy and their banking system and
initiatives are generating good outcomes, I believe they would be even more fruitful if they
implemented the above mentioned recommendations. Al-Arafah Islami Bank PLC recruitment
and selection process, training programs and initiatives taken in order to improve the quality of
their employees and to ensure that they work to their fullest potential have generated good
outcomes, which shows that their investment in their employees have not gone in vain. However,
I do believe that by following the above mentioned recommendations Al-Arafah Islami Bank
PLC can get even better results.
68
List of Abbreviations
Al-Arafah Islami Bank PLC.: National Credit and Commerce Bank Training Institute
BIBM: Bangladesh Institute of Bank Management
BB: Bangladesh Bank
BBTA: Bangladesh Bank Training Academy
SCB: Standard Chartered Bank
HRD: Human Resource Department
HRIS: Human Resource Information System
PO: Pay Order
LC: Letter of Credit
SWIFT: Society for Worldwide Inter Telecommunication Network
ATM: Automated Teller Machine
FDR: Fixed Term Deposit
STD: Short Term Deposit
NFCD: Non Resident Foreign Currency Deposit Account
NRTA: Non Resident BDT Deposit Account
RFCD: Resident Foreign Currency Deposit Account
69
References
• Mello, Jeffrey A. (2021) Strategic Management of Human Resource, 3rd Edition, Delhi:
Cengage Learning India Private Limited.
• Alutto, J. A. “Just in time Management Education for the 21st Century,” HR Magazine,
July, 2021, p. 57.
• Griffen, R. W. Text book: Management, 5th edition, published by Houghton Mifflin

Company, 1997, P-456.
• https://www.nccbank.com.bd/
• https://www.bb.org.bd/
• https://dsebd.org /
• David A. Decenzo & Stephen P. Robbins, Human Resource Management, 6th Edition.
• Annual Report 2022 of Al-Arafah Islami Bank PLC.
70
Appendix- Questionnaire
Dear Sir/Madam,
I am a Student of BGC Trust University. This questionnaire for my thesis purpose, your
response is very important for me. As I assigned to complete the task for academic purpose
so all of your personal information will be remained hidden. Oblige me by providing the
answer to the questions below. Thank you.
Name (optional): ………………………….
Gender:  Male  Female
Age:  22-25  26-30 31-35 36-40  40+
Experience of AIB PLC:  1-3  3-6  6-8  8-12  12+
Strongly Strongly
Q. No Question Agree Neutral Disagree
agree disagree
The organization has clear

1 business and operational
objectives that are understood by
all employees
Employees understand
2 how their individual efforts
contribute to business success
Management shares business

3
strategies with all employees
Management shares business

4 results with employees on a
regular basis
Management has put in place a

clear set of values that underpin
5
business performance
Management measures business

6
performance against objectives
Management actively seeks

feedback from clients and
7 customers with a view Improving
service
71
Management is constantly looking for ways
8 to improve
products and services
Management is
disciplined with
9
employee performance
feedback and appraisals
Management puts a great deal of
effort into hiring new employees
10
who will fit into the organization
Management does an excellent job

11 of communicating with employees
on a host of issues
Management encourages
12 and rewards specific
behaviors
Management is quick to
13 deal with problem
employees/ performance
Management rewards
14 employees for business
success
Management
encourages all
15
employees to challenge
how well things are done
Employee morale is generally

16
high - most of the time
72

HRM Practices in Private Commercial Banking Factor AIB PLC

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Internship Report

BGC Trust University Bangladesh

Subject: Submission of Internship Report

January, 2024 The Author

This is to certify that the Internship Report on "HRM Practices in Private

1.2 Background of the Report

1.3 Objectives of the Study

1.2 Background of the Report

1.3 Objectives of the Study

1.4.1 Primary Data

1.4.3 Data Collection Process

2.1 Background of Al-Arafah Islami Bank Limited

2.5 Special Feature of the Bank

2.6 Corporate Information

2.7 Organizational Structure of AIBL

2.8 Product & Service

2.9 Financial Performance

2.10 Internship Activity

2.11 Job Description and Responsibilities

2.12 Learning Outcomes

2.13 Personal Recommendations

2.5 Special Feature of the Bank

2.6 Corporate Information

Name of Company Al-Arafah Islami Bank Limited (AIBL)

Managing Director & CEO (MD)

Additional Managing Director (AMD)

Deputy Managing Director (DMD)

Director General (DG) & Principal of AITRI

Senior executive vice president (SEVP)

Executive vice president (EVP)

Senior vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

First Assistant Vice President (AVP)

Senior Professional Officer

Senior Executive Officer

Officer Executive Officer

2.8.1 Deposit Products:

2.8.3 Loan Product

▪ Consumer Credit Scheme

Particulars 2018 2019 2020 2021 2022 Growt

2.11 Job Description and Responsibilities

2.12 Learning Outcomes

3.1 HR Purpose & Role

3.2 Function of HRM

3.3 Strategic Planning, Employee Recruitment

3.4 Employee Training and Development

3.5 Performance Management

3.2 Function of HRM

3.2.1 Functions of Human Resource Management

3.2.1.1 The Managerial Functions of Human Resource Management are as follows:

3.2.1.2 The Operative Functions of Human Resource Management are as follows:

3.2.1.3 The Advisory Functions of Human Resource Management are as follows:

3.3 Strategic Planning, Employee Recruitment

Models of strategic planning process

5. Organic strategic planning model

3.4 Employee Training and Development

2. Improved performance of employees

3.5 Performance Management

4.1 Strategic Human Resource Planning

4.2 Human Resource Practice in Al-Arafah Islami Bank PLC.

4.3 Recruitment Sources