Students' World: Recruitment process followed by Grameen Bank & Al-Arafah Islami Bank Limited

2.0 Introduction

2.1 Origin of the Report

This report is generated under the academic supervision of our course teacher Mr/Mrs X, Department of X, University of X. This report is prepared as the requirement of course. The topic is “Recruitment process followed by banking organizations.”

2.2 Scope

In this report, at first we cover the preliminary concept of Recruitment and Recruitment process. Then we go for its practical maintenance which is the main focus of this report. We explained the Recruitment process through two real banking organization.

2.3 Background of the Report

Personnel play an important role in achieving the goal of an organization. To appoint appropriate personnel to different significant posts is an important matter for every organization. To select appropriate personnel there is no alternative to proper recruitment process. So recruitment process plays a vital role for every kind of organization. In the following pages of this report we have tried to explore the recruitment process of banking organizations.

2.4 Methodology

The information gathered in this report is collected mainly from –

Ø Our honorable course teacher Samia Sultana Tani

Ø Related Books and Reports.

Ø Online sources.

Ø Senior brothers from the same department.

Ø Our dear classmates.

2.5 Limitations

The major limitations encountered are:

Ø Lack of experience on preparing reports.

Ø Unavailability of the information due to the secrecy of the organization visited.

Ø Lack of primary and secondary data.

3.0 All about Recruitment process:

Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it.

The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool.

Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time.

Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:

Figure 1.0: Phase of recruitment process

A. Steps Before Selection:

Measures or steps taken in this section of recruitment process are –

Figure 1.1: Steps taken before selection

(i) Departmental Requisition collection: At the primary stage an organization collects requisition from its different departments.

(ii) Approval of the H.R. Department: After collecting requisition an organization send the necessary information to the H.R. Department for the approval of giving circular.

(iii) Circular system: With the approval of the H.R. Department an organization gives circular through different medias.

(iv) C.V. collection: At this stage of recruitment process an organization collects C.V from interested applicants.

B. Steps involved in employee selection:

Measures or steps taken in this section of recruitment process are –

Figure 1.2: Steps taken in employee selection

(I) C.V. evaluation : After collecting C.V from the applicants. The officials should evaluate the C.V carefully so that the qualified applicants may be selected.

(ii) Short list : When C.V from the applicants are evaluated carefully, then the applicants who have the required qualification are selected and their record are filed in a short list so that it may be easy for the management department to inform them for in a specific date written test.

(iii) Conducting test : The applicants whose record filed in office file are called for to appear in written test on a specific date so that every applicants can prove their ability to get the job.

The applicants who are selected from the written test are called for appearing in an interview so that the management committee can select the perfect one.

(iv) Primary Selection: After taking written test, the candidates need to be selected primarily. Primary selection helps to select the candidates finally. Among the primary selective candidates, the organization selects the most appropriate and qualified candidates.

(v) Personal Inquiry: Before selecting the candidates finally, every organization needs to know the background of the candidates. It helps the organization to know the nature and character of the candidates.

(vi) Medical checkup: Medical checkup is taken for knowing the physical fitness of the candidate.

(vii) Final Selection: If any candidate fulfils all the requirements mentioned above he/she will be selected finally.

C. Steps after selection:

Measures or steps taken in this section of recruitment process are –

Figure 1.3: Steps taken after selection

(i) Appointment Letter: After final selection, the organization provides appointment letter to the candidate who passes previous Exam with desired marks. After getting the appointment letter, the candidates have to meet with the organization within fixed date.

(ii) Training: Training helps to improve the efficiency of a candidate. Every organization provides training to their employee to develop their skill. After getting training, the candidate who fails to show his/her skill is cancelled by the organization.

(iii) Orientation: Persons who are selected from a long term selection process, need to know their senior professional and the seniors also feed necessity to know about the newly selected person, so an orientating program needs to be arranged.

4.0 Recruitment process of banking organizations

Recruitment process is an inseparable part of every organization. Let us have a look on the Recruitment process of two banking organizations.

4.1 Grameen Bank and Its History

Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral.

Grameen Bank's positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies including the World Bank, the International Food Research Policy Institute (IFPRI) and the Bangladesh Institute of Development Studies (BIDS).

Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976. In 1983 it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women. It works exclusively for them. Borrowers of Grameen Bank at present own 95 per cent of the total equity of the bank. Remaining 5 per cent is owned by the government.

As of October, 2009, it has 7.94 million borrowers, 97 percent of whom are women. With 2,560 branches, GB provides services in 84,787 villages, covering more than 100 percent of the total villages in Bangladesh.

4.2 The Recruitment process of GB:

Figure 2.0: Recruitment process of G.B.

The total description is given bellow –

Measures taken before selection

This part of the recruitment process includes following steps:

v Demand collection from different zones:

At the first stage of the recruitment process, G.B gathers information from their 40 Zones about vacant posts created from promotion, demotion, retirement etc. Vacant posts can also be created from launching new branches.

v Approval of the Administration Department:

After collecting the information, everything is sent to the Administration Department for the approval. Then the administration department takes the necessary steps to recruit the employees.

v Circular system:

After the approval of the administration department this bank gives the circular. G.B. generally gives their circular through different Medias i.e. Prothom Alo and their web- site www.grameen info.org-

v C.V Collection:

After giving circular through media, G.B. collects the C.V. from the interested applicants.

Measures taken at the time of employee selection

This part of the recruitment process includes following steps:

v C.V Evaluation and shortlist:

After having C.V. from numerous interested candidates, this bank evaluates C.V. and makes a short list of initially selected employee. Generally this bank cancels a C.V. on the basis of two criteria. One is incompletion which means the C.V. lacks some information i.e. result is

given but the passing year is not given. Another is the qualities of the candidate is not enough according to the requirements of circular.

v Conducting written test:

After evaluating C.V. and selecting initial candidates, this bank takes written test. Generally the written test contains following topics:

· Information Technology

· General Knowledge

· Basic English

· Sociology

The candidate obtaining minimum 60% marks is qualified for the next test.

v Primary Selection:

After taking written tests this bank sorts out some employees who do excellent in written test. Generally the obtained marks of the test and prepare a short list. The candidates who are top in the list are selected initially.

v Conducting viva test:

After primary selection, the candidates are asked for viva. This test is taken in two ways. For recruiting officers this bank takes viva in the head office and for recruiting non-officer employees this bank takes viva in it’s respective zones. The things which are given priority are –

· Better performance in written test.

· Skill of communicating.

· Aptitude

· Personality

· Intelligence

v Thinking About The Other factors:

Grameen Bank focuses on the following factors especially –

· Geographical Location

· Excessive Academic Results

· Experience

v Final selection:

Among the primarily selected candidates, this company makes a merit list (panel) of the candidates according to their need. It also makes a waiting list of the rest candidates. And thus this bank select candidates finally.

Measures taken after selection

v Appointment letter:

After selecting finally, this bank issues appointment letters to candidates on the basis of its demand.

v Training:

This bank has its own distinctive training program. The training period of this bank is one year. Within this year this bank trains the selected candidates practically and takes a seven-day training class. It takes evaluation tests for three times in the training period. If any candidate fails two times he/she is considered unable of doing this job. After passing the three tests a candidate has to give a final exam to their appointed zonal officers.

v Confirmation of the job:

This bank gives the letter of confirmation to the selected candidates after the training period.

v Orientation Program:

After delivering the confirmation letter and before joining, this company organizes a orientation program. The aim of this program is to introduce the new employees with the old employees.

Thus this bank complete its recruitment process.

4.3 Al-Arafah Islami Bank Limited and Its history

To achieve Islamic ideology Al-Arafah Islami Bank Ltd was established (registered) as a limited company on 18 June 1995. The inaugural ceremony took place on 27 September 2005.

Some very renowned Islamic Personalities and pious businessmen of the country are the sponsors of the bank. The Bank is committed to contribute significantly in the national economy.

It has made a positive contribution towards the socio economic development of the country by opening 46 branches on which 16 authorized dealer (AD) throughout the country. On 31 December 2007 the manpower of the Bank was 1033. To render improved services to the clients imbued with Islamic spirit of brotherhood peace and fraternity and by developing an institutional cohesion.

The Bank is committed towards establishing welfare oriented banking system, economic uplift of the lower-income group of people, create employment opportunities.

4.4 The Recruitment process of Al-Arafah Islami Bank Limited:

Figure 3.0: Recruitment process of AIBL

The total description is given bellow –

Measures taken before selection :

v Collecting Departmental Requisition :

To recruit this bank Collects demands from different departments. And send the information to the H.R. Department.

v Approval of the H.R. Department :

After selecting demands the H.R. department gives the approval. If there are any problems to select demands the H.R. department will cancel it.

v Circular System:

Getting approval of this bank published the circular in prothom Alo, Daily Star and their website http://www.al-arafahbank.com/ . The circular system is maintained by the Head office of this bank.

v C.V Collection :

After publishing Circular this bank receives C.V from different sections. Then all C.V put under consideration.

Measures taken at the time of selection .

v C.V evaluation :

After receiving C.V this bank evaluate the C.V from different angle. The C.V which does not provide detail information about the candidate is canceled by this bank and makes short list of the C.V and goes to the next step to recruit employee.

v Conducting text:

To determine the efficiency of the candidates this bank takes test.

v Written test:

Written test is taken by Bangladesh Institute of Bank Management. It held in the exam hall of B.I.B.M. The B.I.B.M prepares question papers and also evaluates the answer scripts. To pass in the written test the candidate must get desired marks in the exam. Written test contains following topics –

· English.

· International Affairs.

· Bangladesh Affairs.

· Mathematics.

· Banking.

v Primary selection:

The candidate who passes in the written test is selected for the primary selection. And are called for viva.

v Viva:

After preparing primary selection the management committee of this bank takes the Viva test of the selected candidates. By taking Viva test this bank determines who is best for the required post of the bank.

v Final Selection:

The candidates who get desired marks in written and viva test is selected for the final selection.

Measures taken after selection:

v Appointment letter:

After preparing final selection, the bank gives the appointment letter to the candidates who pass in the written and viva test with desired marks in the exam.

v Training:

After selection finally by conducting written test and interview, a long time (may be 1 year) training program is completed. The training program is held in every branch. In a training program the training class and test is taken too. Here the test scripts are evaluated by the respective person. If anyone passes his record is filed in office record file. If anyone fails, his record is also filed in office record file. This record file influences on his or her professional career such as promotion, demotion etc. But it is also helpful for them that they are not disqualified.

v Orientation:

The orientation program for newly selected person is held too in is branch. It may be arranged during training period or after training but the orientation program must be arranged because the newly selected professionals need to know about their senior and the seniors also need to know about their newly selected professionals.

5.0 Findings:

Some similarities and dissimilarities are found in the recruitment process of Grameen Bank and Al-Arafah Islami Bank Ltd. They are given bellow –

Similarities:

C.V. Collection:

Grameen bank collects C.V. in branch wise where they need any human power and similarly, Al-Arafah Islami bank collects its C.V. in every branch wise where they need any human power.

Circular system:

When any branch of Grameen bank needs any human resource, they circular it on the daily newspaper and on the internet that contains the minimum qualification. Similarly, if Al-Arafah Islami bank needs any human power, they circulars it on the internet and at the same time in different daily newspapers such as THE DAILY STAR, PROTHOM ALO etc.

Evaluation:

When Grameen bank takes written test, their exam scripts are evaluated by the respective person and the interview is conducted with only whom who has passed the written exam. The same process is followed by Al-Arafah Islami bank.

Training:

After taking interview, the finally selected persons are given an appointment letter. When they join in their workplace, to be more skilled, they must have to participate in a long term training program. Here training classes and several exams are also taken for the both banking institution.

Dissimilarities:

Collection of demands:

Firstly Grameen bank collects the list of requirement in zone wise where as Al-Arafah Islamic bank collects their requirements in branch wise. Grameen bank demands for minimum CGPA-3.00 where as Al-Arafah Islami bank demands for at least CGPA-3.25. Both the bank publishes their requirements in daily newspaper.

C.V. evaluation:

Grameen bank evaluates its C.V. by giving priority on the experience and results. On the other hand Al-Arafah Islami bank evaluates its c.v. by giving priority on the results more than experience but if a person has the both qualification, they evaluates the past workplace and justify the reason why s/he has left that workplace.

Evaluation of extracurricular activities:

Grameen bank gives priority on the extracurricular activities of a person with a good results, because if he has not a good results he will not be able to keep pace with the banking activities only with his/her extracurricular activities. The same things are considered by the Al-Arafah Islami bank too.

Conducting written test:

Grameen bank takes its applicants written test in its own institution. The exam script is evaluated by the officers on the other hand Al-Arafah Islami bank takes its written test in BIBM. And the exam scripts are evaluated by the respective person. Though for the both banking institution the failures in the written test are disqualified. But the passed applicants are called for interview.

Consideration in interview:

At the time of interview several things are considered. They are following for the both bank:-

v Sociology is considered in Grameen bank and is not considered in Al-Arafah Islami Bank.

v As Al-Arafah Islami bank is an Islamic bank, the people involved here may be Islamic in religion. But Grameen bank doesn’t consider this point.

v Location of living places is also considered in both Grameen bank where Al-Arafah Islami bank does not consider this.

v Grameen bank gives priority both on experience and educational qualification where Al-Arafah Islamic bank gives priority on educational qualification.

Orientation program:

Grameen bank arrange its orientation program after its training program period is passed only with its finally selected human power by disqualifying in three stages (written test, interview and training program exam). On the other hand, Al-Arafah Islami bank arrange its orientation program during its training period or after the training period with its finally selected human power. As it disqualifies the applicants in two times (written test, interview).

6.0 6.0. Suggestion:

Some necessary suggestions for are given bellow:

· Both in Grameen Bank and Al-Arafah Islami Bank Limited an employee who is being trained should be trained skillfully so that the trainees can create a separate job sector based on the training program because by creating a separate job sector, one can contribute to remove poverty as majority of our young generation are unemployed and they can join in that job sector and thus remove their unemployment.

· GB considers the co-curricular activities with a good result of an applicant and for this reason, the selected person can take part in their work place very proficiently. Al-Arafah Islami Bank is a bank that does not consider this fact but they should consider this matter because with academic qualification, if the trainees do not have the experience of co-curricular activities he/she cannot take part in work very proficiently.

· Both GB and Al-Arafah Islami Bank should give opportunity to their finally selected people for going abroad for higher training so that ever one after completing a train program can participate in different development project for the greater welfare of the country. And by receiving training one can be a proficient banker in banking sector.

· To operate the banking activities, the banks need well characterized and fit employees. In order to get well characterized employees, this two organizations need to inquiry personally otherwise, there will be selected characterless employees. On the other hand medical Test is necessary to get the healthy employees. As the Grameen Bank and AL- Arafah Islami Bank do not follow this two things, we personally suggest to follow these.

· Mathematical and analytical ability help to improve the power of sense of a person. Before recruitment the employer have to justify the intensive power of a candidate. So In conducting test both Grameen Bank and Al-arafah Islami Bank Limited, mathematical and analytical ability have to include for justifying the skill of a candidate.

· To recruit employee these two banks have to follow modern recruitment process. Modern recruitment process help to save time to recruit. But existing recruitment process in bank takes much time. Recruitment process has to computerized which makes easier the process.

· The higher authority of these two banks should always concern about the fairness of recruitment and selection. Without having efficient, energetic, enthusiastic people an organization can’t achieve its ultimate goal. A good placement can’t be without having good employee.