An Evaluation of Human Resource Policies and Practices – A case study of Jamuna Bank Limited

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“An Evaluation of Human Resource Policies and Practices – A case study of Jamuna Bank Limited”

Objective of the Study

There have two types of objective

The main objectives of the study are:

  • To acquire the practical knowledge regarding the HRM practices of Jamuna Bank Limited.

The Secondary objectives of this report are:

  • To develop the practical knowledge by the practical orientation of work.
  • To build up the pillar of the career for near future.
  • To know about Jamuna Bank Limited
  • To know about Human Resource Departments Practices of Jamuna Bank Limited.

Methodology of the Study

Different data and information are required to meet the goal of this report. Those data and information were collected from various sources, such as, primary and secondary which is showed below:

Primary Sources of Data:

  • I have collected primary data through questionnaire.

Secondary Sources of Data:

  • File study.
  • Annual report of Jamuna Bank Limited.
  • Statement of affairs.
  • Bank Rate sheet.
  • Internet.
  • Progress report of the Bank.
  • Bangladesh Bureau of statistics report.
  • Different publications regarding banking function.

Scope of the study

Jamuna Bank Limited is now well growing and it’s containing sixty-six branches in Bangladesh. The scope of the study will be limited to the organizational setup, function and operation of the Jamuna Bank Limited in the Bangladesh. This report mainly encompasses the Human Resource Practices of Jamuna Bank Limited.

Limitations of the Study

During the study, I have faced the following limitations:

  • It is very difficult to collect all the required information in such a short period.
  • Due to some legal obligation and business secrecy banks are reluctant to provide data. For this reason, the study limits only on the available published data and certain degree of formal and informal interview.
  • The bankers are very busy with their jobs, which lead a little time to consult with.
  • Large-scale research was not possible due to time constraints.

· Relevant data and document collection were difficult due to the organization confidentiality.

The Organization


Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.

The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of trade, commerce and industries.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers’ needs. The scenario of banking business is changing day by day, so the bank’s responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has real-time centralized Online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides this traditional delivery point, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country.

The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday including government holidays

Vision, Mission, Objectives


To become a leading banking institution and to play a pivotal role in the development of the country


The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force


To earn and maintain CAMEL Rating ‘Strong’
To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
To introduce fully automated systems through integration of information technology.
To ensure an adequate rate of return on investment.
To keep risk position at an acceptable range (including any off balance sheet risk).
To maintain adequate liquidity to meet maturing obligations and commitments.
To maintain a healthy growth of business with desired image.
To maintain adequate control systems and transparency in procedures.
To develop and retain a quality work-force through an effective human Resources Management System.
To ensure optimum utilization of all available resources.
To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels

Functional Areas

A bank plays a vital role for developing economic growth in any country and controlling money circulation. It has a lot of functions in different ways. First we have to know about a bank, that is-

A bank means an institution, which borrows money from the surplus unit of the society and lends money to the deficit units for earning profit. The deposits are mainly accepted by the banker through current account and saving account withdraw able by cheques. Deposits are also accepted by several head of accounts. A bank includes a body of persons, weather incorporated or not, who carry on business on banking. Thus bank is a profit making institution, which deals in money and credit.

The functions of commercial banks are now wide and varied. However the function of commercial banks many broadly be classified under the following two categories:-

  1. Primary Function and
  2. Secondary Function

A. Primary Functions

The primary functions of commercial bank/ Jamuna Bank Limited are as follows.

Accepts Deposits:

The first primary function of bank is to accept deposits of money from the public or serves group. The total deposits held by the banker are broadly classified as-

a) Demand Deposit: Demand deposits are withdrawn able on demand and thus on prior notice is needed. Deposit in Current Accounts fall in this category.

b) Time Deposit: Timedeposits are repayable on the expiry of a fixed period on time only. Fixed Deposit Accounts, recurring Deposit Accounts and deposit payable at specified notice fall in this category.

The bank usually pays interest on all types of deposit accounts except the current accounts.

Lends Money:

Banking business essentially involves lending. In fact the deposits are accepted for

Lending and investment. Depending on the requirements of the borrowers, the bank lends money in the forms following:

a) Loans: In case of loan, the entire amount is paid to the borrower in lump sump, either in case or by way of transfer to his account. The borrower can withdraw the amount at any time. The loan can be repaid either in installments or in lump sump. Interest is calculated and charged on the debit balance usually with quarterly rests. A loan was repaid in full or in part cannot be withdrawn further. Thus, no cheque book is issued against the loan account.

b) Overdraft: Overdraft is usually a temporary agreement where the customer is allowed to allow withdraw money exceeding the credit balance of the current account up to an agreed limit. Unlike loan, withdrawals or deposits can be made any number of time, provided the total amount overdraws does not exceeds the agreed limit. Interest in-charged only for the amount drawn.

c) Cash Credit: A cash credit is an arrangement where the customer is allowed to withdraw money up to the sanctioned limit. Unlike overdraft this is a permanent arrangement and usually used to meet the working capital needs of business house, industries etc. In cash credit account withdrawals and deposits may be affected frequently. Interest is charged on daily balanced and thus the borrower can save interest by reducing the debit balance with his surplus amount. Cash credit arrangement is usually made against pledged or hypothecation of goods but this could also be extended against personal security.

d) Bill Discounted and Purchased: Another mode of advancing money is discounting of the issuance bill of exchange. The banks buy the bill before its maturity at a price less than the face value. The amount, which the bank deducts from the face value of instrument, is actually the interest calculated up to the date of maturity of the bill. On maturity the bank realizes the amount from the drawer of the bill.

Banks sometimes purchase the bills instead of discounting them. This Bills must be is accompanied by documents of title of goods is purchased by the bank. In such cases the bank extends credit in the form of overdraft or cash credit against the security of the bill purchase.

Creates Credit:

The creation of credit is one of the important functions of commercial bank. In the

Ordinary course of business, bank accepts deposit from the public and lends money

to its customers. When a bank extends loan, it does not pay the amount in the bank

Account of the borrower and allow withdrawing the required amount by cheques.

Creates Medium of Exchange:

Commercial banks usually issue cheque, which circulates like money in the society

And thus creates the medium of exchange.

B. Secondary function:

Modern commercial banks like Jamuna Bank Limited, besides performing the primary functions, cover a wide range of financial and non-financial service to meet the growing needs of the time. Some of these services are available only to the customers while others are available to the public in general.

The subsidiary services provided by a modern banker may be classified in the following two groups:

B.1: Agency Services:

In many case the commercial banks act as the agents of the customers. As an agent the bank provides the following services:

  • Execution of standing instructions or orders of the customer via, payment of subscription, insurance premium, utility bill, rent etc.
  • Collection of cheque, draft, bill of exchange, promissory note, dividends, salaries, pensions, rent etc. on behalf of the customer.
  • Acting as a correspondents and representative of its customers, other banks and financial institution.

B.2: General Utility Services:

Commercial Banks provide a variety of general utility services to the customers.

They are following:

? Issue Letter of Credit (L/C) bank guarantee etc.

? Accepts valuables comment for safe custody.

? Conducts in foreign exchange business.

? Lease financing

? Provides inter-net banking service.

? Provides telex-banking service.

? provides home banking service.

? Provides specialize advisory service.

? Issued debit and credit cards.

? Underwrites shares and securities.

? Factoring.

? Merchants banking.

Basic Activities

Jamuna Bank Limited accepts deposits on the basis of Mudaraba in the following types of accounts, and pays profit, like that of dividend in these accounts, except Alwadia Current Account. Customers’ deposit their fund in the following types of Accounts:

1. Mudaraba Short Notice Deposit Account

2. Mudaraba Savings Account

3. Mudaraba Term Deposit Account

4. Other Deposit Scheme Accounts are following:

? Monthly Saving Scheme.

? Monthly Income Scheme.

? Double Benefit Scheme.

? Triple Benefit Scheme.

? Millionaire Scheme.

? Hajj Scheme.

? Cash waqf Scheme.

? Household Durable Purchase Scheme.

? Housing Investment Scheme.

? Women Entrepreneur Investment Scheme.

? Small Entrepreneur Investment Program.

? Medium Entrepreneur Investment Program.

5. Investments modes:

To provide interest-free Banking Jamuna Bank has adopted the following modes of investment:

Ø Musharaka (equity participation on the basis of sharing profit and loss)

Ø Mudaraba (sharing of profit and loss in business where one of the partners provides expertise and management and other partner provides capital remaining inactive)

Ø Murabaha (buying and selling of commodities goods etc. with profit)

Ø Bai-Muajjal (credit sale with profit)

Ø Ijara (leasing for rent)

Ø Hire purchase or Shirkatul Melk

Ø Bi-Salam (purchasing of agricultural products while in production and providing advance oney to the producers)

Ø Istisna (purchasing of industrial products while in production and providing advance money to the producers).

Ø Quard.

6. Computer services:

Jamuna Bank Limited is computerized and provides the following services some of these services will be introduced soon. Jamuna Bank Limited introduced a few schemes, which are very popular:

  • Online services
  • Automated Accounting
  • Integrated System
  • Signature Verification
  • Any Branch Banking
  • ATM Services
  • POS Services
  • SMS Push Pull Services
  • Other Delivery Channel Services (to be implemented)

Organizational Structure

Board of Directors

It appears like this

There is a board of Directors of 18 members in the bank. The board of Directors is the apex body of the bank.

  1. Al-haj Md. Rezaul Karim Ansari, Chairman
  2. Gazi Golam Murtoza, Vice Chairman
  3. Al-haj M. A. Khayer
  4. Engr. A. K. M. Mosharraf Hussain
  5. Engr. Md. Atiqur Rahman
  6. Golam DastagirGazi (Bir Protik)
  7. Fazlur Rahman
  8. Al-Haj Nur Mohammed
  9. Md. Tajul Islam
  10. Sakhawat, Abu Khair Mohammad
  11. Md. Belal Hossain
  12. Md. Mahmudul Hoque
  13. Md. Sirajul Islam Varosha
  14. Farhad Ahmed Akand
  15. Kanutosh Majumder
  16. Shaheen Mahmud
  17. Md. Ismail Hossain Siraji
  18. A. S. M. Abdul Halim Independent Director
  19. Md.Motior Rahman Managing Director

Various Committees

Board of Audit Committees

The board of directors also decided the composition of each committee and determines the responsibilities of the committee.

Policy Committee

Al matters relating to the principles, rules and regulation, ethics etc. for operation and management of the bank are recommended by the committee to the board of directors.

Executive Committees

All routine matters beyond delegated powers of management are decided upon by or routed through Executive Committee, subject to ratification by the board of directors.

The Board of Directors has an extension as follows-

All routine matters beyond delegated powers of Management are decided upon by or routed through the Executive Committee, subject to ratification by the Board of Directors. The Executive Committee consist of 7 (seven) members of the Board of Directors and the Managing Director. The Chairman of this Committee is being selected by rotation.


Al-Haj Nur Mohammed

Board Audit Committee

This Committee consists of 4 members:

  1. Md. Tajul Islam, Chairman
  2. Engr. Md. Atiqur Rahman, Co-Chairman
  3. A.S.M. AbdulHalim,Independent Director

4. Malik Muntasir Reza,Company Secretary

An- Overview:


Human resource management (HRM) is a relatively modern label for the range of themes and practices involved in managing people. It is defined and described in a variety of (sometimes contradictory) ways.

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human resource (or personnel) management, in the sense of getting things has done through people. It’s an essential part of every manager’s responsibilities, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. “People are our most valuable asset” is a cliché which no member of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain

  • under valued
  • under trained
  • under utilized
  • poorly motivated, and consequently
  • perform well below their true capability

The rate of change facing organizations has never been greater and organizations must absorb and manage change at a much faster rate than in the past. In order to implement a successful business strategy to face this challenge, organizations, large or small, must ensure that they have the right people capable of delivering the strategy.

The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’, product/process/organization knowledge and experience for new staff members.

As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: “ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs”, that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work grade.

Functional Areas of HRM

Human Resource Management functions may be briefly described as:

1. Manpower Planning: The HR considers the actual requirement of the staff for the organization. Because the overstaffing is wasteful and expensive, and understaffing leads to loses of the organization economics and profits.

2. Employee selection: Selection of employees for the suitable job.

3. Employees motivating: Motivating employees and encourage them to give their best in work productivity.

4. Employees relation: Keeping a healthy relationship with the employees and their problems are redressed.

5. Payroll module: Payment of salaries and wages to the workers at the proper time.

Some functional areas of HRM are given below:

Employee Motivation:

To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.

As staffing needs will be vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as ‘fair and just’ there will be no motivation.

Employee evaluation:

An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:

  • To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed.
  • What has been done to improve the performance of a person last year? and what can be done to improve his or her performance in the year to come?).
  • To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.
  • To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but is based on the same assessment).

Training and Development:

In general, education is ‘mind preparation’ and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is ‘the growth of the individual in terms of ability, understanding and awareness’.

Within an organization all three are necessary in order to:

  • Develop workers to undertake higher-grade tasks;
  • Provide the conventional training of new and young workers (e.g. as apprentices, clerks, etc.);
  • Raise efficiency and standards of performance;
  • Meet legislative requirements (e.g. health and safety);
  • Inform people (induction training, pre-retirement courses, etc.);

From time to time meet special needs arising from technical, legislative, and knowledge need changes. Meeting these needs is achieved via the ‘training loop’.

Recruitment and Selection of Employees:

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage;

  • In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process).
  • Effectively, selection is ‘buying’ an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection.
  • Equally some small organizations exist to ‘head hunt’, i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the ‘cost’ of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.

Compensation and Benefit:

Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified sick days, stock options, etc.) can be a catch-22 because an employee’s performance can be influenced by compensation and benefits, and vice versa. In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some satisfaction (good work environment, interesting work, etc.). Compensation should be legal and ethical, adequate, motivating, fair and cost-effective, and able to provide employment security.

Performance appraisal:

One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee’s performance can include subordinates, peers, group, and self, or a combination of one or more.

Just as there can be different performance evaluators, depending on the job, several appraisal systems can be used. Some of the popular appraisal methods include (1) ranking of all employees in a group; (2) using rating scales to define above-average, average, and below-average performance; (3) recording favorable and performance, known as critical incidents; and (4) managing by objectives.

Industrial Relation:

Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between:

(a) Workers (and their informal and formal groups, i.e. trade union, organizations and their representatives);

(b) Employers (and their managers and formal organizations like trade and professional associations);

(c) The government and legislation and government agencies l and ‘independent’ agencies like the Advisory Conciliation and Arbitration Service.

Importance of HRM

Organizational Psychology holds that successful organizations do not owe their success solely to market realities and sustainable competitive advantages. Actually, there is a lot more. Successful companies are those that consider their human capital as their most important asset. Facts and figures are the quantitative elements of successful management, yet the qualitative, i.e. the cognitive aspects, are those that actually make or break an organization.

Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization. Assuming that the employees of an organization are individuals with own mental maps and perceptions, own goals and own personalities and as such they cannot be perceived as a whole, HRM holds that the organization should be able to employ both individual and group psychology in order to commit employees to the achievement of organizational goals.

Aiming to enable the organization to achieve its strategic goals by attracting, retaining and developing employees, HRM functions as the link between the organization and the employees. A company should first become aware of the needs of its employees, and at a later stage, understand and evaluate these needs in order to make its employees perceive their job as a part of their personal life, and not as a routine obligation. To that end, HRM is very crucial for the whole function of an organization because it assists the organization to create loyal employees, who are ready to offer their best.

The HRM activities in modern organizations are typically performed in communication with the General Management in an effort to provide a variety of views when a decision must be taken. In that way, decision making is not subject to the individual perceptions of the HR or the General Manager, but it becomes the outcome of strategic consensus.

The main goals / responsibilities of HRM are:

• To retain low employee turnover rate by inspiring people to work for the company

• To attract new employees

• To contribute to employee development

To achieve these goals, Human Resources Management trains and motivates the employees by communicating ethical policies and socially responsible behavior to them. In doing so, it plays a significant role in clarifying the organization’s problems and providing solutions, while making employees working more efficiently.

On the other hand, challenges do not cease for the HRM. Modern organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many companies have not understood the importance of the human capital in successful operations. The recruitment and selection of the best employees is a very difficult obligation. Even companies that are voted in the top-ten places to work at, often endure long periods of hard work to realize that human element is all an organization should care about.

New challenges arise even now for the organization, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects.

HRM is the legal liaison between the organization and the employees, they are to uphold the employment and safety laws (civil rights act) as well as follow the practices, which may differ within federal guidelines that the employer authorizes.

A large part of this growth is the Human Resources department of these companies, who are responsible for hiring the people with the knowledge to bring new technology into a company. To be successful in the automotive market, these companies needs a highly skilled, flexible and committed work force, a flexible and innovative management, the ability to retain developed talent, and a strong partnership between management and labor unions.

The backbone of any successful company is the HR department, and without a talented group of people to hire, culture, and inform employees, the company is doomed for failure.

Challenges of HRM

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization’s big picture and be able to influence key decisions and policies. In general, the focus of today’s HR Manager is on strategic personnel retention and talents development. HR professionals will be coaches, counselors, mentors, and succession planners to help motivate organization’s members and their loyalty. The HR manager will also promote and fight for values, ethics, beliefs, and spirituality within their organizations, especially in the management of workplace diversity.

This topic will highlight on how a HR manager can meet the challenges of workplace diversity, how to motivate employees through gain-sharing and executive information system through proper planning, organizing, leading and controlling their human resources.

The Challenges of Workplace Diversity:

The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a HR manager needs to be mindful and may employ a Think Global, Act Local’ approach in most circumstances. With a population of only four million people and the nation’s strive towards high technology and knowledge-based economy; foreign talents are lured to share their expertise in these areas. Thus, many local HR managers have to undergo cultural-based Human Resource Management training to further their abilities to motivate a group of professional that are highly qualified but culturally diverse. Furthermore, the HR professional must assure the local professionals that these foreign talents are not a threat to their career advancement. In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager.

Control and Measure Results:

A HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization-wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle out, without resolving any real problems that may surface due to workplace diversity.

Motivational Approaches:

Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied (or met) so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company.

Executive Information Systems:

Executive Information System (EIS) is the most common term used for the unified collections of computer hardware and software that track the essential data of a business’ daily performance and present it to managers as an aid to their planning and decision-making. With an EIS in place, a company can track inventory, sales, and receivables, compare today’s data with historical patterns. In addition, an EIS will aid in spotting significant variations from “normal” trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put your business back on the right track. This would enable EIS to be a useful tool in an organization’s strategic planning, as well as day-to-day management.

HRM Theory & Model

Developing HRM Plan

A broad spectrum of theories from different disciplines is portrayed in contemporary A broad spectrum of theories from different disciplines is portrayed in contemporary HRM (as a discipline of business administration). Theories from psychology, sociology and economics correspond to the variety of problems addressed in HRM which are again situated at different levels of analysis, namely on the individual, group and organizational level. This article introduces basic elements of the modern “rational choice” approach: the macro-micro-macro model of explanation, homo socio-economic as a model of man and exchange theory as a baseline model of aggregation. A final summary discusses research questions and applications of “rational choice” in HRM.

The HRM Plan is built upon an understanding of the department’s vision, mission, values, and strategic programs and challenges. Developing the HRM Plan this way links the HRM programs to business plans and helps priorities HRM programs according to business priorities

Model for Developing the HRM Plan

HRM- Two Model

The concept of Human Resource Management developed with a more strategic level of thinking about the nature and role of people (as total 24hr per day human beings) working in organizations which are ‘cultures’ in their own right. Recent thinking has moved from the control-based model to the compliance model.

The soft edge of the latter involves eliciting employee commitment and expecting effectiveness and efficiency to follow.

The hard edge of the latter involves ridding the organization of unnecessary layers of middle management which, when stripped of control functions, have very little by way of value added.

The management task is to cause the people to be as creative and productive as possible.

Policy Area Control-Based HRM Commitment-based HRM
Job Design Principles Sub-division of work; specific job responsibility – with accountability ; planning separate from implementation Broader jobs; combined planning and implementation; teams
Management Organization Top-down control and coordination; hierarchy; status symbols. Flat structure; shared goals for coordination and control; status minimized
Compensation Fair day’s pay for a fair day’s work; job evaluation and appraisal; individual incentives. Reinforcing group achievement; pays geared to skill and other contribution criteria; profit sharing
Employee Voice Unionized (damage control, bargaining); Non unionized (attitude surveys) Mutual mechanism for communications and participation; mechanisms for giving employee voice on issues
Labor Management Relations Adversarial Mutuality; joint problem-solving and planning
Management Philosophy The boss dictates; management obligated to stakeholders Fulfillments of employee’s needs is a goal rather than an end

Traditional HRM model

Customer Satisfaction Model

The customer satisfaction model from N. Kano is a quality management and marketing technique that can be used for measuring client happiness.

Kano’s model of customer satisfaction distinguishes six categories of quality attributes, from which the first three actually influence customer satisfaction:

  1. Basic Factors: (Dissatisfies. Must have.) – The minimum requirements which will cause dissatisfaction if they are not fulfilled but do not cause customer satisfaction if they are fulfilled (or are exceeded). The customer regards these as prerequisites and takes these for granted. Basic factors establish a market entry ‘threshold’.
  1. Excitement Factors: (Satisfiers. Attractive.) – The factors that increase customer satisfaction if delivered but do not cause dissatisfaction if they are not delivered. These factors surprise the customer and generate ‘delight’. Using these factors, a company can really distinguish itself from its competitors in a positive way.
  1. Performance Factors: The factors that cause satisfaction if the performance is high, and they cause dissatisfaction if the performance is low. Here, the attribute performance-overall satisfaction is linear and symmetric. Typically these factors are directly connected to customers’ explicit needs and desires and a company should try to be competitive here.

The additional three attributes which Kano mentions are:

  1. Indifferent Attributes: The customer does not care about this feature.
  1. Questionable Attributes: It is unclear whether this attribute is expected by the customer.
  1. Reverse Attributes: The reverse of this product feature was expected by the customer.

Employment & Employees

Human Resource Planning


Human resource planning is the process of determining an organization’s human resource need. Human Resource Planning is one of the most important elements in a successful human resource management program, because it is a process by which an organization ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.

Rigorous HR planning links people management to the organization’s mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. A key goal of HR planning is to get the right number of people with the right skills, experience and competencies in the right jobs at the right time at the right cost.

Human Resource planning is the processes by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization, reach its objectives.

Job Analysis

A job analysis is a systematic exploration of the activities within a job. It is a technical procedure used to define a jobs duties, responsibilities, and accountabilities. Job analysis provides information about jobs currently being done and the knowledge, skills, and abilities that individuals need to perform the jobs adequately.

The job analysis may include these activities:

  • Reviewing the job responsibilities of current employees,
  • Doing Internet research and viewing sample job descriptions online or offline highlighting similar jobs,
  • Analyzing the work duties, tasks, and responsibilities that need to be accomplished by the employee filling the position,
  • Researching and sharing with other companies that have similar jobs, and
  • Articulation of the most important outcomes or contributions needed from the position.

Job Analysis Method

The basic method by which HRM can determine job elements and the essential knowledge, skills and abilities for successful performance include the following:

  1. Observation Method: Observation method is a job analysis technique in which data are gathered by watching employee works.
  1. Individual Interview Method: The individual interview method assembles a team of job incumbents for extensive individual interviews.
  1. Group Interview Method: Group interview method is meeting with a number of employees to collectively determine what their jobs entail.
  1. Structured Questionnaire Method: Structured questionnaire method is a specially designed questionnaire on which employees’ rate tasks they perform in their jobs.
  1. Diary Method: Diary method is a job analysis method requiring job incumbents to record their daily activities.
  1. Technical Conference Method: Technical conference method is a job analysis technique that involves extensive input from the employee’s supervisor.

HR Demand

The demand step is done both for the short and longer -term strategic horizons. Thus this step in the HRP framework potentially requires one to do a bit of forecasting, as demand is a future orientated concept (even if it’s for the immediate future). We therefore look at several methods of forecasting demand.

One of the interesting things about demand for labor is that it is a derived demand. In other words, the demand for labor is dependent on more primary demands. We have already seen how strategy creates demand for a certain level of labor. More specifically, business strategy leads to consumers demanding the organization’s products, and a greater internal demand for capacity. It is from this and other ‘primary’ demands that the demand for labor is derived. Thus the demand for labor is a secondary, dependant (derived) demand.

HR Supply

There are three steps in assessing supply capability,

1. Assess what HR capabilities currently exist in the organization to fulfill needs

2. In light of this, assess how adequately the current workforce supplies needs (is there a shortage or surplus of the right kind of staff based on forecasted demand?)

  1. Therefore, assess what changes need to be made to perfect the HR supply (strategic staffing goals and plans – do we hire / downsize / relocate / etc.)

The step looks at current people & skills. There are several (hopefully) readily available information sources within the organization that make it possible to do this. These include:

Organizational Supply Capabilities

o Skills inventory: (a register of current HR capabilities, incorporating information on each employees’ skills, demographics, and test scores etc.)

o Management inventory: (similar to skills inventory, but tailored to management, often including subjective assessments of ability etc.)

Assessing Adequacy of Current Staff

Once one has be assessed the current or future workforce capabilities, one need to assess those capabilities against demand. There are three possibilities in each case:

Ø Too few people / skills (shortage – we need to add)

Ø Too many people / skills (surplus – need to remove employees from this sector)

Ø Need to reduce some staff & hire others (it is even possible that the number of people will remain the same in this case, but the type / quality will have changed).

The third option normally involves skills (not numerical) deficiencies, where current staff lack necessary skills and cannot be trained, necessitating replacing them with adequately skilled staff for the situation. There are however potential legal problems in this regard, which should be understood and managed (see second block work).

Strategic Staffing Goals & Plans

The comparison of demand and internal supply data will lead to quantifiable objectives for strategic staffing (i.e. ‘we need to add XYZ number of so-and-so quality to our TYU division / job level’ or ‘we need to remove ABC number of staff from FGH department’). Whoever is fulfilling the HRP process will need to fulfill these objectives through choice of methods.



According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization”. Recruitment is the activity that links the employers and the job seekers. A few definitions of recruitment are:

  • A process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected.
  • It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.

Recruitment Method

A manager can recruit in two different ways:

Internal recruitment is when the business looks to fill the vacancy from within its existing workforce.

External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business.

Sources of Recruitment


The four most popular ways of recruiting externally are:

  1. Job centers: These are paid for by the government and are responsible for helping the unemployed find jobs or get training. They also provide a service for businesses needing to advertise a vacancy and are generally free to use.
  1. Job advertisements: Advertisements are the most common form of external recruitment. They can be found in many places (local and national newspapers, notice boards, recruitment fairs) and should include some important information relating to the job (job title, pay package, location, job description, how to apply-either by CV or application form). Where a business chooses to advertise will depend on the cost of advertising and the coverage needed (i.e. how far away people will consider applying for the job
  1. Recruitment agency: Provides employers with details of suitable candidates for a vacancy and can sometimes be referred to as ‘head-hunters’. They work for a fee and often specialize in particular employment areas e.g. nursing, financial services, teacher recruitment
  1. Personal recommendation: Often referred to as ‘word of mouth’ and can be a recommendation from a colleague at work. A full assessment of the candidate is still needed however but potentially it saves on advertising cost.

Internal sources:

  1. Transfers: The employees are transferred from one department to another according to their efficiency and experience.
  1. Promotions: The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.
  1. Others are Upgrading and Demotion of present employees according to their performance.
  1. Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.
  1. The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

Advantages and Disadvantages

Advantages and Disadvantages are given below:

Advantages Disadvantages
Internal Recruitment
  • Cheaper and quicker to recruit.
  • People already familiar with the business and how it operates.
  • Provides opportunities for promotion with in the business – can be motivating.
  • Business already knows the strengths and weaknesses of candidates
  • Limits the number of potential applicants.
  • No new ideas can be introduced from outside the business.
  • May cause resentment amongst candidates not appointed.
  • Creates another vacancy which needs to be filled
External Recruitment o Outside people bring in new ideaso Larger pool of workers from which to find the best candidateo People have a wider range of experience O Longer processO More expensiv