“Human Resource Management of Dhaka Bank Ltd.”
1.1 Objectives of the study:
The objective of this study is to fulfill the requirements of project thesis:
. Human Resource Management practices.
. Employee Personnel practices.
. Developing Employees practices.
. Compensation of Employees practices.
. Performance Appraisal of Employees practices.
1.2 Methodology of the Report:
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.
(a) Primary Sources of Data:
Primary data are collected from questionnaires.
(b) Secondary Sources of Data:
- Annul report of Dhaka Bank Limited.
- Several types of Academic test books.
- Different publication regarding Banking functions.
- Information about the organization from their company profile.
- Web sites of Bangladesh Bank, Dhaka Bank Limited etc.
1.3 Scope of the Report:
The scope of this report is mostly limited to Dhaka Bank Limited, as the report is based on practical observations, and also limited to the related departments of this report. There was no scope of doing outside surveys except getting some help from secondary data of other banks. The report scope was narrowed to the branch operations and practices.
1.4 Limitations of Study:
* Limitation of employment personal.
* Limitation of practices in human resource management.
* Limitation of employees’ development in this organization.
* Limitation of benefit and compensation of employees.
1.5 Organization Profile: Dhaka Bank Limited (DBL)
Bangladesh economy has been experiencing a rapid growth since the ’90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers’ remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to channelize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Dhaka Bank Limited in the year 1995.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk 1,289,501,900 as on June 30, 2006. The total equity (capital and reserves) of the Bank as on June 30, 2006 stood at Tk 2,188,529,224.
The Bank has 40 branches across the country and a wide network of correspondents all over the world. The Bank has plans to open more branches in the current fiscal year to expand the network.
(ii) Our Mission:
To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.
(iii) Our Vision:
At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments.
(iv) Our Goal:
Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of our vision – Excellence in Banking.
(v) The Value:
- Customer Focus
- Respect for the individual
- Responsible citizenship
(vi) Financial Highlights:
(Figures in million Taka)
2. The Banking Sector in Bangladesh
2.1 The Banking sector in Bangladesh:
The commercial banking system dominates Bangladesh’s financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system consists of four nationalized commercial Banks, around forty private commercial banks, nine foreign multinational banks and some specialized banks. The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed greatly towards poverty reduction and the empowerment of women in Bangladesh.
2.2 Types of Banks:
- Central Bank
- Nationalized Commercial Banks
- Private Commercial Banks
- Foreign Banks
- Specialized Banks
- External links
(i) Bangladesh Bank (Central Bank):
Pursuant to Bangladesh Bank Order, in 1972 the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank with retrospective effect from 16th December, 1971.
(ii) Nationalized Commercial Banks:
The banking system of Bangladesh is dominated by the 4 Nationalized Commercial Banks, which together controlled more than 54% of deposits and operated 3388 branches (54% of the total) as of December 31, 2004. The nationalized commercial banks are:
- Sonali Bank
- Janata Bank
- Agrani Bank
- Rupali Bank
(iii) Private Commercial Banks:
Private Banks are the highest growth sector due to the dismal performances of government banks (above). They tend to offer better services and products.
- AB Bank Limited
- BRAC Bank Limited
- Eastern Bank Limited
- Dutch Bangla Bank Limited
- Dhaka Bank Limited
- Islami Bank Bangladesh Ltd
- Pubali Bank Limited
- Uttara Bank Limited
- IFIC Bank Limited
- National Bank Limited
- The City Bank Limited
- United Commercial Bank Limited
- NCC Bank Limited
- Prime Bank Limited
- Southeast Bank Limited
- Al-Arafah Islami Bank Limited
- Social Investment Bank Limited
- Standard Bank Limited
- One Bank Limited
- EXIM Bank Limited
- Mercantile Bank Limited
- Bangladesh Commerce Bank Limited
- Jamuna Bank Limited
(iv) Foreign Banks:
- City Group
- Standard Chartered Bank
- Commercial Bank of Ceylon
- State Bank of India
- Habib Bank
- National Bank of Pakistan
- Woori Bank
- Bank Alfalah
- ICB Islami Bank
(v) Specialized Banks:
Out of the specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank) were created to meet the credit needs of the agricultural sector while the other two ( Bangladesh Shilpa Bank (BSB)& Bangladesh Shilpa Rin Sangtha (BSRS)) are for extending term loans to the industrial sector. The Specialized banks are:
- Grameen Bank
- Bangladesh Krishi Bank
- Bangladesh Shilpa Bank
- Rajshahi Krishi Unnayan Bank
- Bangladesh Shilpa Rin Sangstha
- Basic Bank Ltd (Bank of Small Industries and Commerce)
- Bangladesh Somobay Bank Limited(Cooperative Bank)
- The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
3.Profile of Southeast Bank Limited
3.1 History of Establishment:
Southeast Bank is one of the few banks permitted by the Bangladesh bank in the early 90s; the other banks permitted earlier were Dutch-Bangla Bank, Al-Arafah Islami Bank, Prime Bank, Dhaka Bank, Eastern Bank. These banks are known as the second generation bank and fortunate to remain immune from the bad loan culture. However, the performance of these banks is not the same, the Southeast Bank Limited remained as one of the top performers among them. Its performance also has been reflected in its good loan being the 3.5 percent as against the national average of 33 percent in the private banking sector.
The emergence of Southeast Bank Limited at the junction of liberation of global economic activities, after the “Uruguay Round” has been an important event in the financial sector of Bangladesh. The experience of the prosperous economies of Asian countries and in particular of South Asia has been the driving force and the strategies behind operational policy option of the bank. The company’s philosophy “A Bank with vision” has been preciously the essence of the legend of bank’s success.
The bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals:
- To be the most caring and customer friendly and service oriented bank.
- To create a technology based most efficient banking environment for its customers
- To ensure ethics and transparency in all levels
- To ensure sustainable growth and establish full value of the honorable shareholders and
- Above all, to add effective contribution to the national economy
Eventually the Bank emphasizes on:
- Providing high quality financial services in export and import trade
- Providing efficient customer service
- Maintaining corporate and business ethics
- Being trusted repository of customers’ money and their financial adviser
- Making its products superior and rewarding to the customers
- Display team spirit and professionalism
- Sound Capital Base
- Enhancement of shareholders wealth
- Fulfilling its social commitments by expanding its charitable and humanitarian activities
The gist of our vision is “A Bank With Vision”. Southeast Bank Limited believes in togetherness with its customers, in Pits march on the road to growth and progress with services. To achieve the desired goal, there will be pursuit of excellence at all stages with a climate of continuous improvement, because in Southeast Bank Limited, we believe, the line of excellence is never ending. Bank’s strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environments. Its personalized quality services to the customers with the trend of constant improvement will be cornerstone to achieve our operational success.
Whether in treasury, consumer or corporate banking, Southeast Bank Limited is committed to provide the best. Meeting the demand of discerning customers is not the sole objective. The Bank believes that to provide standard financial services is to deliver a quality that makes every transaction of pleasurable experience. The bank also believes that Customer is always right and in the core of everything. So providing them friendly and personalized service, tailor-made solutions for business needs, global reach in trade and commerce at the doorsteps and high yield on investments are the core objectives of the bank. But the bank also tries to do the best in conjunction with achieving the ultimate objective of a business organization- Wealth Maximization.
3.5 No of branch:
The Southeast Bank has 47 branches of the six divisions in the country. Forty seven branches of Southeast Bank to contribute in our economic development and they properly service the people of the country.
3.6 Management Hierarchy of Southeast Bank Limited:
Board of Directors
Additional Managing Director
Deputy Managing Director
Executive Vice Presidents
Senior Vice Presidents
Senior Assistance Vice
Assistance Vice Presidents
Senior Principal Officers
Management Trainee Officer
3.7 Total No of Employees:
At present Southeast Bank Limited have 1786 over employee and employer surrounding several branches of Bangladesh. All are maintain a significant co-operative relationship between themselves to accommodate better service to the people & society of Bangladesh.
3.8 Human resource practices in Dhaka Bank Limited:
Employee’s are the core resources of any organization, without them, one can not run their organization, and human resources is conducted with the growth of development of people toward higher level of competency, creativity and fulfillment. It keep employee’s become better more responsible person and then it tries to create a climate in which they contribute to the limits of their improved abilities. It assumes that expanded capabilities and opportunities for people with lead directly to improvements in operating effectiveness. Essentially, the human resource approach means that people better result. Dhaka Bank Limited always determine what jobs need to be done, and how many and types of workers will be required. So, establishing the structure of the bank assists in determining the skills, knowledge and abilities of jobholders. To ensure appropriate personnel are available to meet the requirements set during the strategic planning process, human resource managers engage in HRP. This effort is to determine what HRM requirements exists for current and future supplies and demands for workers. Because this bank believes that the quality work comes from quality workers who are well motivated and ready to take challenge to provide better service.
3.9 Strategies of Dhaka Bank Limited:
DBL believes in the practice of Market- Oriented Strategic Planning, developing and maintaining a viable fit between the organization’s objectives, skills and resources. The aim of such approach is to shape and reshape the bank’s businesses and services so that they yield target profits and growth. The strategic planning of DBL involves repeated cycles of corporate and business planning as well as divisional and products or marketing planning. Since the growth and profits of banking business largely depend upon the locations of branches where larger concentration of other businesses and industries are involved DBL primarily focused on location-based strategy. Every year an overall profit target as well as individual targets for each line of business (export, import, loans & advances etc) is set for each branch location by the corporate bodies in collaboration with the regional heads and branch managers.
3.10 Corporate Government:
Like all the other local banks, DBL has a conventional structure. A corporate body conducts a meeting on a weekly basis; the committee is called the Executive Committee. The committee includes Chairman, Vice Chairman, and the group of Directors, Managing Director (MD), Deputy Managing Director (DMD), and Company Secretary. This executive committee approves the various proposals brought by the management prior to implementation. All the proposals are placed to the committee through the managing Director of the Bank.
3.11 Board of Directors:
|Mr. Alamgir Kabir (FCA)||Chairman|
|Mr. Ragib Ali||Vice Chairman|
|Mr. M. A. Kashem||Director|
|Mr. Azim Uddin Ahmed||Director|
|Mrs. Jusna Ara Kashem||Director|
|Mrs. Duluma Ahmed||Director|
|Bangla Capital Limited, Represented by Mr. Tahnoun A. Harun||Director|
|Mrs. Rehana Rahman||Director|
|Mr. Syed Shahid Ali||Director|
|Mr. Mostori Miah||Director|
|Mrs. Sirat Monira||Director|
|Karnafuli Tea Co. Ltd, represented by Mr. Abdul Hye||Director|
|Dr. Zaidi Sattar||Independent Director|
|Mr. Neaz Ahmed||Managing Director.|
|Mr. M. A. Muhith||Deputy Managing Director – I.|
|Syed Imtiaz Hasib||Deputy Managing Director – II.|
|Mr. Muhammad Shahjahan||Senior Executive Vice President & Company Secretary.
3.12 Management Committee:
(i) Managing Director:
(ii) Deputy Managing Director:
- M. A. Muhith
- Syed Imtiaz Hasib
(iii) Senior Executive Vice Presidents:
- Saleh Uddin Ahmed
- Mohammed Gofran
(iv) Executive Vice Presidents:
- Muhammad Shahjahan
- Giash Uddin Ahmed
- Shahabuddin Md. Jafar
- Shahid Hossain
- A.F.M. Shariful Islam
- Lutfur Kabir
- A.K.M. Nurul Alam
- Senior Vice Presidents
- Md. Altafur Rahman
- Md. Anwar Hossain
- Haradhan Banik
- Md. Abdul Wali
- M. Kamal Hossain
- Abdul Hamid Mia
- S.M. Intekhab Alam
- Md. Sawkat Hossain
- Mustafizur Rahman
- Pritish Kumar Sarker
- Shahid Atiqul Islam
(v) Vice Presidents:
- Mohammad Mahmud Hasan
- Mozammel Hossain Chowdhury
- Md. Shamsul Huda
- Anowar Uddin
- Mahfuzur Rahman Khan
- Mirza Akhteruzzan Begg
- Kamal Uddin
(vi) First Vice Presidents:
- Mahbubur Rahman Shabbir
- Abu Syed Md. Mohiuddin
- Golam Akbar Chowdhury
- Syed Nurul Bashar
- Md. Abdul Naim
- Mohammad Hafizur Rahman
- Nur Hossain Hafizur Rahman
- Nur Hossain Chowdhury
- Fazle Kader Ahmed
- Md. Shahjahan Sarker
- Shafiur Rahman
- Md. Zakir Hossain
- Abdul Batin Chowdhury
- 14. Nuruddin Md. Sadeque Hussain
4.HRM- An Overview
4.1 Meaning of HRM:
Human resource management (HRM) is the strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms “human resource management” and “human resources” (HR) have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. In simple sense, Human Resource Management (HRM) means employing people, developing their resources, utilizing maintaining and compensating their services in tune with the job and organizational requirement.
4.2 Academic theory:
The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is “fit”, HRM approach seeks to ensure a fit between the management of an organization’s employees, and the overall strategic direction of the company (Miller, 1989).
The basic premise of the academic theory of HRM is that humans are not machines; therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resource Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:
- Strategic business partner
- Change management
- Employee champion
However, many HR functions these days struggle to get beyond the roles of administration and employee satisfaction, and are seen rather as reactive as strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value.
4.3 Critical Theory:
Postmodernism plays an important part in Academic Theory and particularly in Critical Theory. Indeed Karen Legge in ‘Human Resource Management: Rhetorics and Realities’ poses the debate on whether HRM is a modernist project or a postmodern discourse (Legge 2004). In many ways, critically or not, many writers contend that HRM itself is an attempt to move away from the modernist traditions of personnel (man as machine) towards a postmodernist view of HRM (man as individuals). Critiques include the notion that because ‘Human’ is the subject we should recognize that people are complex and it is only through various discourses that we understand the world. Man is not Machine, no matter what attempts are made to change it Fordism / Taylorism, McDonaldisation (Modernism).
Critical Theory, in particular postmodernism (poststructuralist) recognizes that the subject people in the workplace is a complex one, and therefore simplistic notions of ‘the best way’ or a unitary perspective on the subject are too simplistic. It also considers the complex subject of power, power games and office politics. Power in the workplace is a vast and complex subject that cannot be easily defined. This leaves many critics to suggest that management ‘Gurus’, consultants and HR models are often overly simplistic, but in order to sell an idea, they are simplified, and often lead Management as a whole to fall into the trap of oversimplifying the relationship.
4.4 History of HRM:
This assignment traces the history of Human Resource Management from the Industrial Revolution in the 18th century to present times. The assignment discusses key periods and movements in this field and expands on their contribution to modern Human Resource Management. In discussing the history of Human Resources Management it is important to offer a definition of the subject. Human Resource. Management can be described as “The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce in ways that contribute to human resources.
(b) A Historical Review:
(i) The Industrial Revolution:
The momentum for the industrial revolution grew through the 17th century. Agricultural methods were continually improving, creating surpluses that were used for trade. In addition, technical advances were also occurring, for example the Spinning Jenny and the Steam Engine. These advances created a need for improved work methods, productivity and quality that led to the beginning of the Industrial Revolution.
(ii) Adam Smith:
In 1776, Adam Smith wrote about the economic advantages of the division of labor in his work “The Wealth of Nations”. Smith (1776) proposed that work could be made more efficient through specialization and he suggested that work should be broken down into simple tasks. From this division he saw three advantages.
In modern business the Human Resource Management function is complex and such has resulted in the formation of Human Resource departments/divisions in companies to handle this function. The Human Resource function has become a wholly integrated part of the total corporate strategy. The function is diverse and covers many facts including manpower planning, recruitment and selection, employee motivation, performance monitoring and appraisal, industrial relations, provision management of employee benefits and employee education training & development.
4.5 Functions of Human Resource Management:
4.5.1 The Management of Workplace:
HR Management needs to change from an ethnocentric view (“our way is the best way”) to a culturally relative perspective (“let’s take the best of a variety of ways”). This shift in philosophy has to be ingrained in the managerial framework of the HR Management in planning, organizing, leading and controlling of organizational resources.
4.5.2 Planning a Mentoring Program:
One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field.
4.5.3 Organizing Talents Strategically:
Many companies are now realizing the advantages of a diverse workplace. As more and more companies are going global in their market expansions either physically or virtually (for example, E-commerce related companies), there is a necessity to employ diverse talents to understand the various niches of the market. With this trend in place, a HR Manager must be able to organize the pool of diverse talents strategically for the organization. Management must consider how a diverse workforce can enable the company to attain new markets and other organizational goals in order to harness the full potential of workplace diversity.
4.5.4 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.
4.6 Challenges of Human Resource Management:
The role of the Human Resource Manager is evolving with the changing of 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.
5. Employment of Personnel
5.1 Meaning of Human Resource Planning:
An organization would not build a new plant, conducting the ribbon-cutting ceremony, and then begin to worry about how to staff the facility. A firm cannot hire several hundred engineers and get them on board overnight, nor can it develop management talent in just a few weeks. Foresight is necessary to ensure that appropriately qualified staff will be available to implement an organization’s future plans. The tighter the labor market, the more forward planning is required to avoid future problems due to understaffing. On the other hand, planning ahead in a declining economy is also critical in minimizing expensive overstaffing and possible layoffs. Human resource planning is concerned with the flow of people into, through, and out of an organization. HR planning involves anticipating the need for labor and the supply of labor and then planning the programs necessary to ensure that the organization will have the right mix of employees and skills when and where they are needed. The forecasting methods described below provide key input for these processes.
Human resource experts can also take on a strategic role in collaboration with the top management team to plan a strategy for the firm that capitalizes on or builds the organization’s unique human resource competencies. For instance, Marriott Corporation’s goal of being the provider of choice for food and lodging services was supplemented by the goal of becoming the “employer of choice” as well. Executives decided that unless Marriott was a very’ attractive employer, it would not be able to obtain the number and quality of people it needed, for a growth and high-quality service strategy. The company adopted initiatives to broaden its recruiting base, but ‘it also worked hard at retaining and motivating current employees, To that end, changes were made in career paths, job responsibilities, work teams, and reward systems.
At Colgate-Palmolive, a global HR team was formed to help the organization meet its goal of “becoming the best truly global consumer products company.” Top HR managers and key senior line managers worked together on the team to translate business plans into human resource plans that would support organizational excellence. As a result, strategic initiatives were adopted in recruitment, selection, development, individual performance management, team performance management, career planning, diversity, employee attitude surveys, and employee communication.
5.2 Objectives of Human Resource Planning:
Managers and HR departments achieve their purpose by meeting objectives. Objectives are benchmarks against which actions are evaluated. Sometimes they are carefully thought out and expressed in writing. More often objectives are not formally stated. Either way, they guide the HR function in practice. Considering the objectives of Hewlett-Packard’s founders: Human resource objectives not only need to reflect the intention of senior management, they also must balance challenges from the organization, the HR function, society, and the people who are affected. Failure to do so can harm the firm’s performance, profits, and even survival. These challenges spotlight four objectives that are common to HR management and form a framework around which this book is written.
(i) Organizational objective:
To recognize that HR management exists to contribute to organizational effectiveness. Even when a formal HR department is created to help managers, the managers remain responsible for employee performance. The HR department exists to help managers achieve the objectives of the organization. HR management is not an end in itself; it is only a means of assisting managers with their human resource issues
(ii) Functional objective:
To maintain the department’s contribution at a level appropriate to the organization’s needs. Resources are wasted when HR management is more or less sophisticated than the organization demands.
(iii) Societal objective:
To be ethically and socially responsive to the needs and challenges of society while minimizing the negative impact of such demands on the organization. The failure of organizations to use their resources for society’s benefit in ethical ways may result in restrictions.
(iv) Personal objective:
To assist employees in achieving their personal goals, at least insofar as those goals enhance the individual’s contribution to the organization. The personal objectives of employees must be met if workers are to be maintained, retained, and motivated. Otherwise, employee performance and satisfaction may decline and employees may leave the organization.
Not every HR decision can meet these organizational, functional, societal, and personal objectives every time. Trade-offs does occur. But these objectives serve as a check on decisions. The more these objectives are met by the department’s actions, the larger its contribution will be to the organization’s bottom line and the employees’ needs. Moreover, by keeping these objectives in mind, HR specialists can see the reasons behind many of the department’s activities.
5.3 Model for Human Resource Planning:
The first step in HR planning is to collect information. A forecast or plan cannot be any better than the data on which it is based. HR planning requires two types of information data from the external environment and data from inside the organization:
Figure: Human Resource Planning Model
. Current condition and prediction changes in the general economy.
. Economy of the specific industry, relevant technology and competitor firms.
Any of these may affect the organization’s business direction and volume and thus the need for human resources.
Human resource planners must also be aware of labor-market conditions such as unemployment rates, skill availabilities, and the age distribution of the labor force. Finally, planners need to be aware of federal and state regulations, those that directly affect staffing practices, such as affirmative action or retirement-age legislation, and to get rid of those that indirectly affect demand for services or ability to pay staff.
External benchmarking data also can be useful in Human Resource Planning. One might, for instance, discovers that other companies are doing the same work with fewer people, which could lead to a consideration of more efficient ways to work. Benchmarking efforts by Duke Power Company’s consulting firm showed them new ways to organize. Historically, they had staffed projects exclusively with highly experienced (and expensive) professionals. Benchmarking showed them that other successful consulting firms used a small number of top-class experts working with a large support staff of less skilled and experienced people, and they were able to replicate this approach successfully.
The second major type of information comes from inside the organization. Internal information includes short-term and long-term organizational plans and strategies. Obviously, plans to build, close, or automate facilities will have HR implications, as well as plans to modify the organization’s structure, buy or sell businesses, and enter or withdraw from markets. A decision to compete en the basis of low cost rather than personalized service also will have staffing implications. Finally, information is needed on the current state of human resources in the organization, such as how many individuals are employed in each job and location, their skill levels, and how many are expected to change positions or depart the organization during the forecast period.
Once planners have the external and internal information they need, they can forecast the future demand for employees. At a minimum, this forecast includes estimating the number of employees who will be needed in the coming year. Longer-term demand forecasts also may be made. Next, planners forecast the supply of labor, the internal supply of employees and their skills and promo ability, as well as the probable availability of potential new employees, with requisite skills in the external labor market.
The final step in HR planning is to plan specific programs to ensure that supply will match demand in the future. These programs often include recruiting plans and also may include training and development activities, incentives or disincentives to early retirement, Modifications of career paths in the organization or a variety of other HR management programs. Note that the feedback loop shown in Figure 3.1 allows for learning from past planning efforts. If demand or supply forecasts have not been as accurate as desired, forecasting processes can be improved in subsequent years.
5.4 Organizational practices:
Practices in the Southeast Bank Limited:
The bank follows most of the steps of integrate HR planning with corporate planning, assessment of internal HR capabilities and so on.The bank has an integrated HR planning. Their manpower ratio is satisfactory for smooth and quality services to the potential customers.
Dhaka Bank Limited is forecasting future manpower requirements. This is done either in terms of mathematical projections or in terms of judgmental estimates. Mathematical projections are done extrapolating factors like, economic, environment, development trends in the bank. Judgmental estimates are done depending on the specific future plans of the bank by managerial discretion which is based on past experience.
Dhaka Bank Limited is preparing an inventory of present manpower. Such inventory contains data about each employee’s skills, abilities, work preferences and other items of information.
Dhaka Bank all times prepares anticipating problems of manpower. This is can be done by projecting present resources into the future and comparing the same with the forecast of manpower requirements. This helps in determining the quantitative and qualitative adequacy of manpower.
5.5 Concepts of Recruitment:
Recruitment is the 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. In large organizations specialists in the recruiting process, called recruiters, are often used to find and attract capable applicants. The HR plan can be especially helpful because it shows the recruiter both present openings and those expected in the future. Figure presents an overview of the recruitment process from the perspectives of the organization and the candidate. This flow chart displays the process as it unfolds over time. When a vacancy occurs and the recruiter receives authorization to fill it, the next step is a careful examination of the job and an enumeration of the skills, abilities, and experience needed to perform the job successfully. Existing job analysis documents can be very helpful in this regard. In addition, the recruitment planner must consider other aspects of the job environment, for example, the supervisor’s management style, the opportunities for advancement, pay, and geographic location in deciding what type of candidate to search for and what search methods to use.
In the recruitment and selection process, the organization’s and individual’s objectives may conflict. The organization is trying to evaluate the candidate’s strengths and weaknesses, but the candidate is trying to present only strengths. Conversely, although the candidate is trying to ferret out both the good and the bad aspects of the prospective job and employer, the organization may prefer to reveal only positive aspects. In addition, each party’s own objectives may conflict The organization wants to treat the candidate well to increase the probability of job-offer acceptance, yet the need to evaluate the candidate may dictate the use of methods that may alienate the prospect, such as background investigations or stress interviews. Analogously, the applicant wants to appear polite and enthusiastic about the organization to improve the probability of receiving an offer, but he or she may also want to ask penetrating questions about compensation, advancement, and the company’s financial health and future.
5.6 Strategic Issues in Recruiting:
The nature of a firm’s recruiting activities should be matched to its strategy and values as well as to other important features such as the state of the external labor market and the firm’s ability to pay.
Selection is the process by which managers and others use specific instruments to choose from a pool of applicants.
Personnel selection is a process of measurement, decision making, and evaluation. The goal of a personnel selection system is to bring into an organization individuals who will perform well on the job. A good selection system also should be fair to minorities and other protected groups.
5.8 Internal Recruitment Process:
Current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for “lateral” job transfers, internal candidates already know the informal organization and have detailed information about formal policies and procedures. Promotions and transfers are typically proceeded by operating managers with little involvement by the HR department.
(i) Job-Posting Programs:
HR departments become involved when internal job opening are publicized through job-posting programs, which inform employees at openings with required qualifications and invite qualified employees to apply.
Self-nominations may even apply to management trainees. Many organizations hire recent college graduates for management training programs, and this may be little more than an extended job rotation through several departments. After this rotation is completed, some companies allow trainees to nominate themselves to fill posted job openings.
(ii) Departing Employees:
An often overlooked source of recruits consists of departing employees. Many employees leave because they can no longer work the traditional forty-hour workweek. School, child-care needs, and other commitments are the common reasons. Some might gladly stay if they could rearrange their hours of work or their responsibilities. Instead, they quit when a transfer to a part-time job may retain their valuable skills and training.
(iii) External Recruitment Process:
When job openings cannot be filled internally, the HR department must look outside the organization for applicants. The remainder of the chapter discusses the external recruitment channels most commonly used by employers and applicants.
(iv) Walk-ins and Write-ins:
Walk-ins are job seekers who arrive at the HR department in search of a job; write-ins are those who send a written inquiry. Both groups normally are asked to complete an application blank to determine their interests and abilities. Usable applications are kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months.
(v) Employee Referrals:
Employees may refer job seekers to the HR department. Employee referrals have several advantages.
First, employees with hard-to-find job skills may know others who do the same work. For example, a shortage of workers on the Alaskan pipeline was partially solved by having workers ask their friends in the “lower forty-eight states” to apply for the many unfilled openings. TRW and McDonald’s pay employees a referral bonus when qualified candidates arc recommended at some locations.
Second, new recruits already know something about the organization from the employees who referred them. Thus, referred applicants may be more strongly attracted to the organization than the referrals who casually walk-ins.
Third, employees tend to refer their friends, who are likely to have similar work habits and attitudes.
Ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply. They are the most familiar form of employment advertising. For highly specialized recruits, ads may be placed in professional journals or out-of-town newspapers in areas with high concentrations of the desired skills. For example, recruiters in the aerospace industry often advertise in Los Angeles, St. Louis, Dallas-Fort Worth, and Seattle newspapers because those cities are major aerospace centers.
But ads have severe limitations. They may attract thousands of job seekers for one partcular job opening or few may apply for less attractive jobs. For example, few people apply for door-to-door sales jobs if they know the product is vacuum cleaners or encyclopedias. Likewise, the ideal recruits are probably already employed and not reading these ads. Finally, secret advertising for a recruit to replace an incumbent cannot be done with traditional ads. These limitations are avoided through the use of blind ads. A blind ad is an ad that does not identify the employer. Interested applicants are told to send their resumes to a mailbox number at the post office or to the newspaper. A resume, which is a brief summary of an applicant’s background, is then forwarded to the employer. These ads allow the opening to remain confidential, prevent countless telephone inquiries and avoid the public relations problem of disappointed recruits.
(vii) State Employment Security Agencies:
Every state government has a state employment security agency. Often called the unemployment office or the employment service, this agency matches job seekers with job openings.
(viii) Private Placement Agencies:
Private placement agencies, which exist in every major metropolitan area, arose to help employers find capable applicants. They take an employer’s request for recruits and then solicit job seekers, usually through advertising or among walk-ins. Candidates are prescreened, matched with employer requests, and then told to report to the employer’s HR department for an interview. The matching process conducted by private agencies varies widely. Some placement services carefully prescreen applicants; others simply provide a stream of applicants and let the HR department do most of the screening.
(ix) Professional Search Firms:
Professional search firms are much more specialized than placement agencies. Search firms usually recruit only specific types of human resources for a fee paid by the employer. For example, some search firms specialize in executive talent, while others find technical and scientific personnel. Perhaps the most significant difference between search firms and placement agencies is the approach taken. Placement agencies hope to attract applicants through advertising, but search firms actively seek out recruits among the employees of other companies. Although they may advertise, search firms use the telephone as their primary tool to locate and attract prospective recruits.