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Recruitment and Selection Process of Al-Arafah Islami Bank Limited.

Chapter 1

1.1- Objective of the Term paper

The main purpose of report is to focus on the recruitment and selection process that

will enhance our skill and broaden our area of knowledge about the interesting

world of human resource and management. Recruitment and selection process is

such type of task that is based more on projections and creativity and it involves lot

of eort to be successful. !y making this report we will be able to reach to the in-

depth of recruitment that will help to identify our lacking of job analysis and this will

be helpful for our future career. This term paper being made as the re"uirement of

the course human resource #anagement objectives.

1.$- %imitations

&e are really grateful to our course instructor 'thica Tanjeen as for her that we have

got the opportunity to do such analytical task. Through making this term paper( we

will be able to gain the practical knowledge. )t will help us to improve our

communication and analytical skill that will bene*t us in future. +s we are just

studying in !!+ so we have some lack of knowledge to do such task e,ciently and

eectively and there must be some mistakes in this report. !ut through doing such

analytical job we can overcome our lacking.

Chapter $

Theoretical rame &ork

$.1- Recruitment and election

Recruitment and selection are two of the most important functions of personnel

management. Recruitment precedes selection and helps in selecting a right

candidate.

Recruitment is a process to discover the sources of manpower to meet the

re"uirement of the sta,ng schedule and to employ eective measures for

attracting that manpower in ade"uate numbers to facilitate eective selection of

e,cient personnel.

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ta,ng is one basic function of management. +ll managers have responsibility of

sta,ng function by selecting the chief e/ecutive and even the foremen and

supervisors have a sta,ng responsibility when they select the rank and *le workers.

0owever the personnel manager and his personnel department is mainly

concerned with the sta,ng function.

'very organi2ation needs to look after recruitment and selection in the initial period

and thereafter as and when additional manpower is re"uired due to e/pansion and

development of business activities.

$.$- R'CR3)T#'4T

$.$.1- 5e*nition

Recruitment means to estimate the available vacancies and to make suitablearrangements for their selection and appointment. Recruitment is understood as the

process of searching for and obtaining applicants for the jobs from among whom

the right people can be selected.

+ formal de*nition states 6)t is the process of *nding and attracting capable

applicants for the employment. The process begins when new recruits are sought

and ends when their applicants are submitted. The result is a pool of applicants

from which new employees are selected7. )n this the available vacancies are given

wide publicity and suitable candidates are encouraged to submit applications so as

to have a pool of eligible candidates for scienti*c selection.

)n recruitment information is collected from interested candidates. or this dierent

source such as newspaper advertisement employment e/changes internal

promotion etc. are used.

$.$.$- C'4TR+%)'5 89s 5'C'4TR+%)'5 R'CR3)T#'4T

Recruitment practices vary from one organi2ation to another. ome organi2ations

like commercial banks resort to centrali2ed recruitment while some organi2ationslike the )ndian Railway resort to decentrali2ed recruitment practices. :ersonnel

department at the central o,ce performs all the functions of recruitment in case of

centrali2ed recruitment and personnel departments at unit level92onal level perform

all the functions of recruitment

concerning to the jobs of the respective unit or 2one

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$.$.;- #'R)T O C'4TR+%)'5 R'CR3)T#'4T

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&hen it is estimated that what types of recruitment and how many are re"uired

then one has concentrate in A1B. #ake or !uy employees. A$B. Technological

sophistication of recruitment and selection devices. A;B. ?eographical distribution of

labour markets comprising job seekers. A=B. ources of recruitment. A>B. e"uencing

the activities in the recruitment process.

;. '+RC04?@

Once a recruitment plan and strategy are worked out the search process can begin.

earch involves two steps

+B. ource activation and

!B. elling.

+B. O3RC' +CT)8+T)O4@

Typically sources and search methods are activated by the issuance of an employee

re"uisition. This means that no actual recruiting takes place until lone managers

have veri*ed that vacancy does e/ist or will e/ist.

!B. '%%)4?@

)n selling the organi2ation both the message and the media deserve attention.

#essage refers to the employment advertisement. &ith regards to media it may bestated that eectiveness of any recruiting message depends on the media. #edia

are several-some have low credibility while others enjoy high credibility. election

of medium or media needs to be done with a lot of care.

=. CR''4)4?@

creening of applicants can be regarded as an integral part of the recruiting

process though many view it as the *rst step in the selection process. 'ven the

de*nition on recruitment we "uoted in the beginning of this chapter e/cludes

screening from its scope. 0owever we have included screening in recruitment for

valid reasons. The selection process will begin after the applications have been

scrutini2ed and short-listed. 0iring of professors in a university is a typical situation.

+pplication received in response to advertisements is screened and only eligible

applicants are called for an interview. + selection committee comprising the 8ice-

chancellor Registrar and subject e/perts conducts interview. 0ere the recruitment

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process e/tends up to screening the applications. The selection process commences

only later.

>. '8+%3+T)O4 +45 CO4TRO%@

'valuation and control is necessary as considerable costs are incurred in the

recruitment process. The costs generally incurred are@ -

1. alaries for recruiters.

$. #anagement and professional time spent on preparing job description job

speci*cations advertisements agency liaison and so forth.

;. The cost of advertisements or other recruitment methods that is agency fees.

=. Recruitment overheads and administrative e/penses.

>. Costs of overtime and outsourcing while the vacancies remain un*lled.

D. Cost of recruiting unsuitable candidates for the selection process.

$.$- '%'CT)O4

$.$.1- 5e*nition

election is de*ned as the process of dierentiating between applicants in order toidentify Aand hireB those with a greater likelihood of success in a job.

election is basically picking an applicant from Aa pool of applicantsB who has the

appropriate "uali*cation and competency to do the job.

$.$.$- '%'CT)O4 :ROC'

election is a long process commencing from the preliminary interview of the

applicants and ending with the contract of employment.

The following chart gives an idea about selection process@ -

'nvironment factor aecting selection@ -

election is inEuenced by several factors. #ore prominent among them are supply

and demand of speci*c skills in the labour market unemployment rate labour-

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market conditions legal and political considerations companyFs image companyFs

policy human resources planning and cost of hiring. The last three constitute the

internal environment and the remaining form the e/ternal environment of selection

process.

1. :R'%)#)4+R )4T'R8)'&

The applicants received from job seekers would be subject to scrutiny so as to

eliminate un"uali*ed applicants. This is usually followed by a preliminary interview

the purpose of which is more or less the same as scrutiny of application that is

eliminate of un"uali*ed applicants. crutiny enables the 0R specialists to eliminate

un"uali*ed jobseekers based on the information supplied in their application forms.

:reliminary interview on the other hand helps reject mis*ts for reason which did

not appear in the application forms. !esides preliminary interview often called

Gcourtesy interviewF is a good public relation e/ercise.

$. '%'CT)O4 T'T@

Hob seekers who pass the screening and the preliminary interview are called for

tests. 5ierent types of tests may be administered depending on the job and the

company. ?enerally tests are used to determine the applicantFs ability aptitude

and personality.

;. )4T'R8)'&@

The ne/t step in the selection process is an interview. )nterview is formal in-depth

conversation conducted to evaluate the applicantFs acceptability. )t is considered to

be e/cellent selection device. )t is face-to-face e/change of view ideas and opinion

between the candidates and interviewers. !asically interview is nothing but an oral

e/amination of candidates. )nterview can be adapted to unskilled skilled

managerial and profession employees.

=. R''R'4C' C0'CI@-

#any employers re"uest names addresses and telephone numbers of references

for the purpose of verifying information and perhaps gaining additional background

information on an applicant. +lthough listed on the application form references are

not usually checked until an applicant has successfully reached the fourth stage of a

se"uential selection process. &hen the labour market is very tight organi2ations

sometimes hire applicants before checking references.

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>. '%'CT)O4 5'C))O4@-

+fter obtaining information through the preceding steps selection decision- the

most critical of all the steps- must be made. The other stages in the selection

process have been used to narrow the number of the candidates. The *nal decision

has to be made the pool of individuals who pas the tests interviews and reference

checks.

D. :0)C+% 'J+#)4+T)O4@ -

+fter the selection decision and before the job oer is made the candidate is

re"uired to undergo a physical *tness test. + job oer is often contingent upon the

candidate being declared *t after the physical e/amination. The results of the

medical *tness test are recorded in a statement and are preserved in the personnel

records. There are several objectives behind a physical test. Obviously one reason

for a physical test is to detect if the individual carries any infectious disease.

econdly the test assists in determining whether an applicant is physically *t to

perform the work. Thirdly the physical e/amination information can be used to

determine if there are certain physical capabilities which dierentiate successful

and less successful employees. ourth medical check-up protects applicants with

health defects from undertaking work that could be detrimental to them or might

otherwise endanger the employerFs property. inally such an e/amination will

protect the employer from workers compensation claims that are not valid because

the injuries or illness were present when the employee was hired.

K. HO! O'R@ -

The ne/t step in the selection process is job oer to those applicants who have

crossed all the previous hurdles. Hob oer is made through a letter of appointed.

uch a letter generally contains a date by which the appointee must report on duty.

The appointee must be given reasonable time for reporting. Thos is particularly

necessary when he or she is already in employment in which case the appointee is

re"uired to obtain a relieving certi*cate from the previous employer. +gain a newjob may re"uire movement to another city which means considerable preparation

and movement of property.

L. CO4TR+CT O '#:%O#'4T@ -

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+fter the job oer has been mad and candidates accept the oer certain

documents need to be e/ecuted by the employer and the candidate. One such

document is the attestation form. This form contains vital details about the

candidate which are authenticated and attested by him9her. +ttestation form will be

a valid record for the future reference.

There is also a need for preparing a contract of employment. The basic information

that should be included in a written contract of employment will vary according to

the level of the job but the following checklist sets out the typical headings@

1. Hob title

$. 5uties including a parse such as 6The employee will perform such duties and will

be responsible to such a person as the company may from time to time direct7.

;. 5ate when continuous employment starts and the basis for calculating service.

=. Rate of pay allowance overtime and shift rates method of payments.

>. 0ours of work including lunch break and overtime and shift arrangements.

D. 0oliday arrangements@

i.B :aid holidays per year.

ii.B Calculation of holiday pay.

iii.B Mualifying period.

iv.B +ccrual of holidays and holiday pay.

v.B 5etails of holiday year.

vi.B 5ates when holidays can be taken.

vii.B #a/imum holiday that can be take at any one time.

viii.B Carryover of holiday entitlement.

i/.B :ublic holidays.

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+lternatively called employment agreements or simply bonds contracts of

employment serve many useful purposes. uch contracts seek to restrain job-

hoppers to protect knowledge and information that might be vital to a companyFs

healthy bottom line and to prevent competitors from poaching highly valued

employees.

N. CO4C%35)4? T0' '%'CT)O4 :ROC'@ -

Contrary to popular perception the selection process will not end with e/ecuting the

employment contract. There is another step amore sensitive one reassuring those

candidates who have not selected not because of any serious de*ciencies in their

personality but because their pro*le did not match the re"uirement of the

organi2ation. They must be told that those who were selected were done purely on

relative merit.

1P. '8+%3+T)O4 O '%'CT)O4 :RO?R+##'@ -

The broad test of the eectiveness of the selection process is the "uality of the

personnel hired. +n organi2ation must have competent and committed personnel.

The selection process if properly done will ensure availability of such employees.

0ow to evaluate the eectiveness of a selection programmedQ + periodic audit is

the answer. :eople who work independent of 0R department must conduct audit.

The table below contains an outline that highlights the areas and "uestions to be

covered in a systematic evaluation.

Chapter ;

!ackground of the Organi2ation@

;.1 Organi2ation :ro*le

)slam provides us a complete lifestyle. #ain objective of )slamic lifestyle is to be

successful both in our mortal and immortal life. Therefore in every aspect of our life

we should follow the doctrine of +l-Muran and lifestyle of 0a2rat #uhammad A+&Bfor our supreme success.

+l-+rafah )slami !ank started its journey in 1NN> with the said principles in mind and

to introduce a modern banking system based on +l-Muran and unnah. +l-+rafah

)slami !ank is bit dierent from other commercial banks it follows )slami hariah in

its operations and activities.

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+l-+rafah )slami !ank incorporated in !angladesh as a banking company in 1NN>

with limited liability by shares. )t started business on $K eptember of that year with

an authori2ed capital of Taka 1PPP million. +t inception its paid up capital was taka

1P1.$P million divided into 1P1$PP ordinary shares of Taka 1PPP each $; sponsors

of the bank subscribed the total issued capital. )n $PPP the paid up capital of thebank increased to Taka $>; million of which Taka 1$D.>P million were paid by the

promoters9sponsors and Taka 1$D.>P million by the general public. The bank is

listed in the two stock e/changes of the country and has oered 1$DPPP shares for

subscription and trading by the public. +l-+rafah )slami !ank is an interest free

hariah bank and its modus operation is substantially dierent from those of regular

commercial banks. The bank however renders all types of commercial banking

services under the regulation of the !ank Companies +ct 1NN1. )t conducts its

businesses on the principles of musharaka bai-murabaha bai-muajjal and hire

purchase transactions. + hariah Council of the bank maintains constant vigilanceto ensure that the activities of the bank are being conducted according to the

precepts of )slam.

+ group of established dedicated and pious personalities of !angladesh are the

architects and directors of the bank. +mong them a noted )slamic cholar

economist writer and e/-bureaucrat of !angladesh government #r. +. . # hamsul

+lam is the founder chairman of the bank. 0is progressive leadership and

continuous inspiration provided a boost for the bank in getting a foothold in the

*nancial market of !angladesh.

+ group of 1; dedicated and noted )slamic personalities of !angladesh are the

member of !oard of 5irectors of the bank. They are also noted for their business

acumen and professionalism. +l-+rafah )slami !ank %td. 0as >P branches and a total

of 1P;; employees. )ts authori2ed capital is Taka $>PP million and the paid up

capital is Taka 11>;.1L million. &isdom of the directors )slamic bankers and the

wish of +lmighty +llah make +l-+rafah )slami !ank %imited most modern and a

leading bank in !angladesh.

;.$- #ission S 8ision

8ision-

To be a pioneer in )slamic banking in !angladesh and contribute signi*cantly to the

growth of the national economy.

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#ission@

< +chieving satisfaction of +lmighty +llah both here and hereafter(

< :roliferation of hariah based banking practice(

< Muality *nancial services adopting the latest technology(

< ast and e,cient customer service(

< #aintain high standard of business ethics(

< !alanced growth(

< teady and competitive return on shareholderFs e"uity(

< )nnovative banking at competitive price(

< +ttract and retain "uality human resources(

< '/tending competitive compensation packages to the employees(

< irm commitment to the growth of national economy( and

< )nvolving more in #icro and #' *nancing.

;.;- ?oal and Objectives of +)!%@

The ma/im of the +l-+rafah )slami !ank %imited A+)!%B is to discover a new hori2on

of innovative contemporary banking creating an automated and computeri2ed

environment providing one stop service and prepare itself to countenance the new

challenges of globali2ation and 1$th century. One of the main objectives of the bank

is to be a provider of best and eective products and services to cater to the needs

of its corporate clients and provides a comprehensive range of *nancial services to

national and multinational companies.

;.= #anagement of +)!%@

#anagement is the process of planning leading and controlling the work of

organi2ations members and using all available organi2ational resources to reach

stated organi2ational goals.

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The strength of a bank depends on the strength of its management team. +l-+rafah

)slami !ank %imited is proud to have a team of highly motivated well educated and

e/perienced e/ecutives who have been contributing substantially to the continued

progress and growth of the bank.

The management of the bank is vested in $; member board of directors who

oversee the aairs of the bank through a managing director the chief e/ecutive

o,cer of the bank. The registered head o,ce of the bank is at #otijheel 5haka.

;.>- :roducts of +)!% as an )slami !ank@

The +)!% oers their customers general banking facilities which ensure the safety of

their money and eective investments S return. ollowing are the ways through

which banks collects their deposits from the clients@

aB +%-&+5)+ C3RR'4T 5':O)T AC5B

bB #35+R+!+ 0ORT 4OT)C' 5':O)T A#5B

cB #35+R+!+ +8)4? 5':O)T

dB #35+R+!+ T'R# 5':O)T A#T5B

eB 5':O)T 345'R OT0'R C0'#'

fB #O4T0% :RO)T !+'5 T'R# 5':O)T A:T5B

gB #O4T0% )4T+%%#'4T !+'5 T'R# 5':O)T A)T5B

hB #O4T0% )4T+%%#'4T !+'5 0+HH 5':O)T A#05B

iB O4' T)#' 0+HH 5':O)T AT05B

jB #+RR)+?' S )48'T#'4T 5':O)T A#)B

kB +%-+R++0 +8)4? !O45 A+!B

lB OR')?4 C3RR'4C 5':O)T AC5B

mB :'4)O4 5':O)T C0'#' A:5B

nB C+0 &+M+ 5':O)T C0'#' AC&5B

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oB #35+R+!+ #)%%)4+)R' 5':O)T C0'#'

pB #35+R+!+ 5O3!%' 5':O)T C0'#'

"B #35+R+!+ %+C:OT) 5':O)T C0'#'

rB #35+R+!+ IOT):OT) 5':O)T C0'#'

Chapter =

R'CR3)T#'4T S '%'CT)O4 :ROC' O +)!%@

=.1- CO4C':T O R'CR3)T#'4T S '%'CT)O4@

Recruitment is the process of identifying potential incumbents9candidates for actual

or anticipated organi2ation vacancies. Hob candidates are determined throughsearching and sourcing.

Recruitment is the process of *nding "uali*ed and competent people for the

organi2ation and encourages potential incumbents to apply for the vacancies

available.

election is the process of determining potential candidates among the applicants

for the vacancies after completing formal process of identi*cation of candidates

testing and interviewing and approvals by appropriate authority. Once an eective

recruitment program has brought out enough applicants pool then relevant

personnel of the organi2ation works to select the best candidate for speci*c

job9vacancy.

Recruitment and election :rocess AR:B plays the role of vehicle by which one gets

his position in an organi2ation either at lower or middle or top level. +n organi2ation

can not recruit and select the best personnel without its proper and ade"uate use.

The success or failure of an organi2ation depends on recruitment and selection

committee of the organi2ation. Recruitment objective of the bank are as follows@

< To provide the bank with an e,cient and cost eective human resources set up

< To keep bank free from unhealthy practice of grouping or trade union.

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The bank strictly follows all steps of recruitment and selection process de*ned as

per the company policy to achieve the goal vision and mission S above all keep in

the mind aforesaid objectives.

=.$- R'CR3)T#'4T :ROC'@

The recruitment process putting the right people in right place at the right time- is

one of the most critical and important task for any organi2ation. This is basically

triggering force to bring out competent people by a formal recruitment process.

Recruitment refers to the process of identifying and attracting job seekers to build a

pool of "uali*ed job applicants. The process comprises *ve phases@

1B :lanning

$B trategy development

;B earching

=B creening

>B 'valuation and control

The ideal recruitment program is the one that attracts a relatively large number of

"uali*ed applicants who will survive the screening process and accept positions

within the organi2ation when oered. Recruitment programs can not attract theideal candidate in many occasions either by failing to build an competent applicant

pool by under9over selling the organi2ation or by inade"uate screening process

before they come into selection level. Therefore to approach competent candidate

or incumbent individual personnel responsible for the recruitment process must

know how many and what types of employees are re"uired for the vacancies where

and how to look for individuals with the appropriate "uali*cations and skill sets.

&hat ways or inducements to apply or to avoid for various types of applicant

groups how to distinguish applications that are un"uali*ed from having a

reasonable chance of success and to evaluate their work.

=.;- O3RC' O R'CR3)T#'4T OR +)!%@

aB )nternal source

bB '/ternal source

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)nternal source@ refers to the present working force of the bank. )n the event of

vacancies someone already on the payroll is promoted transferred or sometime

demoted to lower level.

'/ternal source@ refers to recruitment of new bunch of people from the applicant

pools screened from interested candidates who have applied for the vacancies.

+)!% recruits people from both internal and e/ternal sources.

#'T0O5 O )4T'R4+% R'CR3)T#'4T@

There are several methods of *nding "uali*ed applicants within the bank. +mong

them most common are as follows@

Hob :osition@

Hob position involves announcement of job opening to all e/isting employees. This

announcement carry information about the nature of the position and "uali*cation

needed and any employee who is interested may apply for this job through his or

her line manager or divisional head.

'mployee referrals@

+nother way to *nd applicants is through employee referrals by other departments.

)nformation communication among managers can lead to identifying bestcandidates for a job is already working in dierent section of the *rm.

kill )nventories@

)nformation about every employeesF skills education work history and other

important factors are preserved in a formal database which may be used to

identifying employees with the desired attributes needed for a particular job.

=.=- #'T0O5 OR 'JT'R4+% R'CR3)T#'4T@

+)!% generally makes an applicantFs pool only by newspaper advertisement. On

certain occasions they recruit people from interns.

+dvertising@

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This is one of the most popular methods. The most useful advertisement is one that

speci*es the e/act nature of the job the "uali*cations re"uired and the salary

range. The advertising medium should be selected with caution with target

audience in mind.

)nternship@

'very !!+ student must go through an internship program. )t is a partial ful*llment

of the re"uirement of !!+ program. )nternship is an important manpower source for

the organi2ation. )t can be win-win situation for both the student as well the

employers. or students it may mean being able to home business skills learn more

about potential employers and know their likings and dis-likings when it comes to

choosing carriers. +n employers can use the contribution of interns by considering

and selecting them as full time employees.

=.>- +dvantages and disadvantages of internal recruitment@

&hen internal recruitment is used the vacancy is *lled by a person of known ability.

There are some bene*ts of internal recruitment@

)mprove goodwill of the organi2ation

)mprove motivation of employees

)mprove probability of better selection as the candidates are better known to theorgani2ation

%ess costly

)n the case of internal recruitment the bank also faces some di,culties@

:revents fresh people from outside the organi2ation who may be right and

competent

Option is limited within the bank

)nhibits innovation and creativity

=.D- +58+4T+?' S 5)+58+4T+?' O 'JT'R4+% R'CR3)T#'4T@

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'/ternal recruitment can bring in new ideas and viewpoints. Other advantages are

as follows@

)njection of new bloods with new knowledge and creativity

#ore economic for the organi2ation in the long run

There are some disadvantages for e/ternal recruitment which are as follows@

'/ternal recruitment is costly

Cause brain drain due to fear of lack of growth potential

0anger probability of employee turnover

5emorali2ing e/isting employees

=.K- 0O& TO 5')4' '%'CT)O4@

election is the process of choosing individuals out of pool of job applicants with

re"uired "uali*cation and competency to *ll jobs in the organi2ation. )t is the

process of dierentiating between applicants in order to identify those with a

greater likelihood of success in a job.

)t is a long process commencing from the preliminary interview of the applicants

and ending with the contract of employment. The process diers among

organi2ation and between two dierent jobs within the same organi2ation. election

procedure for senior manager will be long drawn and rigorous but it is simple and

short while hiring shop Eoor workers.

=.L- )4T'R8)'& S T'T@

)nterview and testing play the crucial role for a 0R manager nowadays in the

selection process of an organi2ation.

0O& TO 5')4' )4T'R8)'&

+)!% call applicants whose "uali*cation matches closely with the job re"uirement. +

face to face interview is organi2ed for job applicants.

T:' O )4T'R8)'&@

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< :reliminary interview

< :lanned interview

< 4on-directive or free interview

< 5epth interview

< tressed interview

< !oard interview

T'T@

+ccording 0.' !3TT 6 Testing is a device for measuring "ualitatively a typical

sample of mental or motor performance in order to predict what an individual will dounder certain circumstances7.

Hob applicants of +)!% should go through some types of test. These are as follows@

5ierent types of standard tests

)ntelligent tests

+bility tests

:ersonality tests

)nterest tests

=.N- CO4TR+CT O '#:%O#'4T@

+fter the job oer has been made and candidates accept the oer certain

documents need to be e/ecuted by the employers and candidates. One such

document is the attestation form. This form contains vital details about the

candidates which are authenticated and attested by him. +ttestation will be a validrecord for future reference.

There is also a need for preparing a contract of employment. The basic information

that should be included in a written contract of employment will vary according to

the level of the job@

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< Hob title

< 5uties

< 5ate when continuous employment starts and the basis for calculating service

< Rate of payments and allowances

< 0ours of work including lunch break and overtime and shift arrangements

< 0oliday arrangements

< ickness

< %ength of notice due to and from employee

< 5isciplinary procedure A or any reference for itB

< &ork rules A or any reference for themB

< +rrangement for terminating employment

=.1P- CO4C%35)4? T0' '%'CT)O4 :ROC'@

+fter providing the appointment letter to the *nally selected employees +)!%

formally ends the selection process.

C0+:T'R >

)45)4? +45 TR'4?T0 S &'+I4'' O +)!%

>.1- 3##+R O T0' )45)4?@

)n $PPL the amount of deposit has accumulated to taka $DDL>===1KK and the

total investment of the bank stood at taka >PKN.$1 million against taka ;K$L.=1

million during the corresponding period of last year. The percentage of increase is

;D.$; as against 1; in banking sector.

The bank has earned taka 1PLL>D1DKN and incurred an e/pense of taka

$LL1P=K1=. +t the end of the year the pro*t before ta/ has stood taka

LPP=>DND> which is 1L$.>; more than taka $L;;1K;P; preta/ income of the

last year.

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>.$- #OT CO##O4 )45)4? +R' ?)8'4 !'%O& Ain briefB@

3nderstanding customer S banker@ There is a gap between the customer and

bankers. Customers are unaware about the moral of )slamic banking system.

ometimes they are not familiar with the rules of )slamic !anking.

Centrali2ation@ The +)!% is too much centrali2ed. or each and every work branch

o,ce has to get permission from the head o,ce. The head o,ce tightly controls

each and every branch o,ce. This dependency on head o,ce causes slow down

their activities.

%engthy investment process@ )n )slamic !anking ystem loan is very lengthy

process. !ut it is lengthier in +)!% because branch managers do not have the power

to give loan. or every loan managers have to send proposal to head o,ce.

#anagement does not want to take any risk.

%ack of personal loan@ +)!% does not give any personal loan because it is against

the rules of )slamic !anking ystem. 0owever personal loan is very popular in other

banks because the rate of interest is very high for personal loan.

+)!% invests in halal business@ +)!% does not invest in 0otel business. !ut this

business has high rate of returns. +)!% mostly invest is purchase and sales business.

They also invest in real estate business.

%C for halal products@ +)!% does not open %C for the products like energy drinks

C5 8C5 and 585. 0owever other banks made high pro*t by opening these types

of %C recently.

5oes not buy savings bonds@ ome international and local savings bonds give

high rate of returns. +)!% does not buy these because it is against the rules of

)slamic !anking ystem.

#anagerFs power@ #anager of any branch of +)!% does not have the power of

giving any loan to the clients without the permission of head o,ce. 0owever inother banks manager have the power to give small loans.

:roblems in loan repayment process@ The client has to repay the money in the

particular branch from where he or she takes the loan. ometimes customers fail to

repay the installment. )f customers have the facilities to repay the loan in any

branch it will be better for them.

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ta loans@ +)!% oers loan to its own sta after a long period of job. 0owever

the rate of interest is higher where other banks give loan to their sta at a cheaper

rate. Therefore sta loses interest to work to some e/tent.

)nternal recruitment might not be eective and fruitful.

election process may not be followed in line with re"uirement where internal

re"uest may be accepted.

5iscrepancy in e/ternal recruitment source.

ormal recruitment may not be followed on e/ceptional cases.

>.;- COR' TR'4?T0 O +)!%@

The following are the core strength of )slamic bank for which it is now considered to

be the emerging sector for success@

< )n accordance with )slamic hariah all actions of the bank are conducted where

pro*t is the legal substitute to interest.

< The total deposit of the bank was taka $DDL>===1KK at ;1st 5ecember $PPL. +t

the same time in the last year it was far lower.

< '/perienced manpower and e,cient employees are being involved in busy

subsection of this section to meet the clientsF satisfaction.

< )t distributes a signi*cant amount of pro*t that they earn by investing dierent

areas.

< )t works to the development of socioeconomic and value system of the people that

is not seen in case of conventional banking.

< )t invests in the human welfare sector. o this bank practices mainly welfare

banking and invest only those sectors where human welfare can be ensured.

< )t has very fair and transparent recruitment and selection process.

< They have approved formal recruitment and selection policy.

< +)!% follows the policy all the time.

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< They have a very good internal sourcing system.

< They have a very fruitful and eective panel of recruitment and selection.

>.=- #+HOR &'+I4' O +)!%@

+)!% is guided by some principles but it has some weakness some of the major

weaknesses are discussed below@

Risk management system is not strong. The bank has already e/posed to a

variety of risks the most important of which are credit risk market risk and li"uidity

risk.

Technology that +)!% is using for their banking system is not updated. 4ow there

is some international bank in !angladesh they are very fast and very updated. +)!%

is losing their clients because of lack of latest technology.

The management of +)!% takes no risk when they give loans to their clients. They

are very slow in decision making. They sometimes fail to take the current

opportunities for this slow decision making process.

+dvertising and promotions are the weak points of +)!%. +)!% does not have any

eective marketing activities. Other banks have better marketing strategy.

!etter recruitment pool may not be made due to good marketing of theiradvertisement.

)nternal recruitments may not be eective for the desired position.

'/ternal recruitment may not be suited due to improper screening.

election process may not be followed on e/ceptional cases cause problems.

C0+:T'R D

R'CO##'45+T)O4 S CO4C%3)O4

D.1- R'CO##'45+T)O4

The possible recommendations are as follows@

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< +)!% should give a mass advertisement mentioning the dierent oerings like !rac

!ank tandard Chartered !ank 0!C and other local banks are practicing.

< +)!% should use the latest banking technology and software to provide better

services to the customers. )t will also attract the customersF of international banks.

< +)!% should pursue advertising and marketing campaign in order to build a strong

image among the people. They should carry out aggressive marketing campaign to

attract clients.

< +)!% should oer dierent types of loans to their own sta immediately after

con*rming their job. This loan will inEuence them for better performance. The

interest rate on this loan must be less than other banks interest rate.

< The dependency on head o,ce in every step should be avoided. They shouldpermit the branches to work independently.

< #anagers of +)!% should have the power of giving small loans to the clients. )t is

very important for the banks to increase the investment.

< )n )slamic !anking system loan is very lengthy process. +)!% should take steps to

minimi2e the process of loan system because customers dislike the lengthy process.

< The client has to repay the money in the particular branch from where he or she

got the loan. This is why whenever the customer wants to repay the installment intime. Communication problem sometimes force him or her to become defaulter. )f

the +)!% allows the clients to repay money at any branches she or he wants it will

be better for them.

< !ank should oer more facilities to the customers such as credit card visa card

+T# machine etc. to survive in the competition.

< !est industry practice of recruitment and selection should be followed.

< '/isting policy for recruitment and selection should be reviewed and revised as

and when re"uired basis.

< +)!% should adopt international and local fast runner and reputed banks practices

in their regular and operational activities.

D.$ CO4C%3)O4

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The +)!% has been attempted to operate its business successfully in !angladesh

since inception. +)!% has already developed an image and good impression among

its clients by oering its e/cellent services. The success is being resulted for +)!%

from dedication commitment and dynamic leadership of its management over the

periods. 5uring the short span of time of its operation the bank has successfullygrabbed a position as progressive and dynamic *nancial institution in the county. )f

the bank goes this way it is e/pected that in the near future +)!% may become one

of the top performer in the banking sector. The bank should take necessary actions

for increasing their investment and maintaining this deposit *gure in future.

Therefore +)!% should adopt and practice best industry policies for recruitment and

selection that brings signi*cant growth and keep the continuous increment to their

revenue and asset base.

!)!%)?R+:0 S R''R'4C'

1. !OOI :'R)O5)C+% S HO3R4+%

aB 5'8 4+T0 5R. R. # 6!anks and %egal 'nvironment7

bB &'4T0'R ! &)%%)+# S 5+8) I')T0-60uman Resources #anagement7

cB +nnual Reports of +l-+rafah )slami !ank %imited

dB!angladesh !ank publications and circulars

eB !anks circulars and reports

$. &'!)T'

aB www.al-arafahbank.com

bB www.bangladeshbank.com

cB www.google.com