Report on Recruitment and Selection Process of Prime Bank Limited

1. Introduction:

The recruitment and selection processes of an organization are two of its most important HR planning activities. The basic purpose of recruiting is to ensure a sufficient pool of applicants from which the most qualified individuals may be selected. Effective recruiting is important because sufficient number of qualified applicants is needed to ensure that selection can be successfully accomplished.

1.1 Origin of the Report:

This report is a requirement of the internship program which is an important part of the MBA degree requirement. As the supervisor has advised me to develop a thorough understanding of the recruitment and selection processes of Prime Bank Limited (PBL), this report will be prepared on those aspects of the HR practices of PBL.

1.2 Objectives of the Study:

The objectives of this study will be:

  • To evaluate the current recruitment and selection policy and process of Prime Bank Limited.
  •  To find out the weaknesses of the current policy.
  •  To suggest improvements to the policy.

1.3 Methodology:

In the preparation of this report, data has been collected from both primary and secondary sources. In-depth interviews of some of the employees of the HR Division of Prime Bank Limited have been conducted to gather necessary information. Also, the Recruitment and Selection Policy of PBL has been consulted in preparing this report. Moreover, text books, the internet, the annual report of Prime Bank Limited etc. have been used to collect information.

1.4 Scope:

The scope of this study is only the recruitment and selection policy and processes of Prime Bank Limited.

1.5 Limitation:

The major limitation of this report is that some confidential information was not available for the purposes of this report.

2.  Prime Bank Limited at a Glance:

Prime Bank was established in April 1995 by a group of visionary entrepreneurs. Known for its superior service quality, brand image, strong corporate governance and a corporate culture committed to excellence, Prime Bank is a top-tier bank in Bangladesh.

2.1  Organizational Profile:

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of starting a commercial bank with a different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.

The Prime Bank Limited, being a banking company, has been registered under the Companies Act 1994. The Bank operates as a scheduled bank under a banking license issued by Bangladesh Bank, the Central Bank of the country.

As a fully licensed commercial bank, Prime Bank Ltd. is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes, so does the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.

Prime Bank Ltd., since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, their strategy is to serve the customers through capacity building across multi-delivery channels. Their past performance gives an indication of their strength. They are better placed and poised to take their customers through fast changing times and enable them to compete more effectively in the market they operate in. 

2.2  Core Business:

Prime Bank Ltd. offers all kinds of Commercial, Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank (Bangladesh Bank). The Prime Bank Group focuses on a wide range of banking and financial services which include commercial banking, retail and SME asset management, Islamic banking, investment banking, merchant banking and card business. Prime Bank is a market leader in corporate to consumer banking and retail lending to SME in Bangladesh

2.3 Corporate Banking:

Prime Bank ranked 15th in Bangladesh by market capitalization, which stood at Tk. 15,349 million as at the end of 2011. It has been ranked as the 4th company as per performance by DSE-20 Index. The Prime Bank Group is the second largest banking group in Bangladesh by asset size, with total assets of Tk. 136,869 million. The Bank’s deposits and lending growth were 24.83 % and 30.29 % respectively in 2010.

2.4   Credit Rating: 

Credit Rating of Prime Bank Limited by CRISL

Long Term

Short Term

Surveillance Rating (2009)

AA

ST-1

Entity Rating (2008)

AA

ST-2

Outlook

Stable

Date of Rating

June 29, 2012

2.5 Financial Performance:

PBL closed another solid year (2011) of performance despite internal and domestic shocks in the economy. This solid performance is a testimony of PBL’s creativity, commitment and care for stakeholders. The bank was able to make operating profit of Tk. 3.85 billion in 2008, an increase of 18.11 percent from the previous year. Net profit attributable to shareholders stood at Tk. 1.23 billion. The return in average equity remained 20.58 percent during 2008 and Earning per Share (EPS) stood at Tk. 43.32. NPL ratio is 1.76 % which is slightly higher than that of 2009 but much less than the industry average. PBL made adequate provision against classified loans. Specific provision made is significantly higher than last year. Adequate provision made the bank stronger the before. During the year 2011, PBL made remarkable progress in recovery of loans amounting to Tk. 85 million. Capital adequacy of the bank is 10.88 percent, which is above the stipulated rate of 10 percent. Cost income ration increased to 33.42 percent from 32.37 percent of previous year.

The strong performance was contributed from its continuous growth in loans and deposits and good performance by the Merchant Banking and Investment Division (MBID). Deposits of the bank rose by Tk. 17.5 billion during 2009 indicating a growth rate of 24.83 percent. Loans and advances, which are well diversified, have grown by 30.29 percent during last year (2010).

Table 2: Financial Highlights of PBL – 2010

2010

2010

Gross Revenue (Taka in million)

12,904

16,622

Operating Income (Taka in million)

5,778

8,196

Profit after Tax (Taka in million)

1,232

2,784

Total Capital (Taka in million)

7,859

12,168

Total Deposits (Taka in million)

88,021

106,956

Total Advances (Taka in million)

75,156

89,252

Total Assets (Taka in million)

110,437

124,806

No. of deposits accounts

409,684

518,878

No. of advances accounts

60,062

86,087

Return on Assets-after tax (%)

1.30

2.37

Return on Equity (%)

20.58

30.19

Liquidity Ratio (%)

18.80

27.60

Capital Adequacy Ratio (%)

10.88

14.11

No. of employees

1551

1,844

No. of branches

70

84

No of SME Centers

5

Credit Rating

Long-term

“AA”

“AA”

Short-term

ST-2

ST-1

2.6  Branch Network

The Prime Bank Group has a large and well distributed branch network of 70 full fledged branches and 3 off-shore banking unit, 5 SME centers and booths in Bangladesh with a strong tradition of service excellence. Among the existing branches of Prime Bank Limited, there are 47 branches in Dhaka division, 21 branches in Chittagong division, 8 branches in Rajshahi division, 2 branches in Khulna division, 11 branches in Sylhet division and 1 branch in Barisal division. The bank has also made its presence in Singapore through its fully owned subsidiary Prime Exchange Co. Pte. Ltd. for facilitating inward foreign remittance to Bangladesh. Eleven new branches have been proposed and are supposed to open by the end of 2010. It has presence in Capital market through merchant banking and investment banking.

2.7  Efficient Capital and Strong Asset Quality

The Prime Bank Group has a strong capital base with a risk-weighted capital adequacy ratio of 10.88 % and a Tier-1 of 8.67 % at the end of 2010. The group has one of the most efficient capital structures in Bangladesh. The bank also has good asset quality in the banking industry and very strong financial ratings.

2.8  Awards and Accolades:

Prime Bank continues to earn recognition and trust for its strong and sustained financial performance and product management. In 2008, Prime Bank was honored of 1st prize under ICAB National Award 2009 for its published account for the year 2008 in banking sub- sector under financial sector. PBL become the 1st Bangladesh Institution to Receive 1st position by SAFA in 2009 for its published report of 2008. PBL also received 1st position in ICMAB best Corporate Governance Award in 2009.

2.9 PBL’s Vision:

“To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.”

It has almost all the characteristics of the effectively worded vision statement, like it is graphic, directional, focused, feasible and desirable.

2.10 PBL’s Mission:

“To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.”

2.11 Corporate Philosophy:

For the Customers:

–       To provide the most courteous and efficient service in every aspect of its business.

–       To be innovative in the development of new banking products and services.

For the Employees:

–       By promoting the well-being through attractive remuneration and fringe benefits.

–       By promoting good staff morale through proper staff training and development, and provision of opportunities for career development.

For the Shareholders:

–       By forging ahead and consolidating its position as a stable and progressive financial institution.

–       By generating profits and fair return on their investments.

For the Community:

–       By assuming our role as socially responsible corporate citizen in a tangible manner.

–       By adhering closely to national policies and objectives thereby contributing towards the progress of the nation.

–       By upholding ethical values and best practices.

2.12. Objectives of the Bank:

The objective of Prime Bank Limited (PBL) is specific and targeted to its vision and to position itself in the mindset of the people as ‘a bank with difference’. The objectives of PBL are as follows:

  • To mobilize the savings and channeling it out as loan or advance as the company approve.
  • To establish, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stocks, debentures, and other securities.
  • To finance the international trade both in import and export.
  • To carry on the foreign exchange business, including buying and selling of foreign currency, traveler’s cheques issuing, international credit card issuance etc.
  • To develop the standard of living of the limited income group by providing Consumer Credit.
  • To finance the industry, trade and commerce in both the conventional way and by offering customer friendly credit service.
  • To encourage the new entrepreneurs for investment and thus to develop the country’s industry sector and contribute to the economic development.

2.13. Strategic Priority:  

“To have sustained growth, broaden and improve range of products and services in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to our customers.”

2.14.  Business Activities of Prime Bank Limited:

The principal activities of the bank are banking and related businesses. The banking businesses include taking deposits, extending credit to corporate organizations, retail and small & medium enterprises, trade financing, project financing, international credit card etc. Prime Bank Limited provides a full range of products and services to its customers, some of which are mentioned below with a brief overview of the major business activities

2.15. Corporate Banking:

Corporate lending is still the core business of the bank. Industrial loans given to corporate clients increased by 32.29 percent, which shows that their activities are aligned with the monetary policy of the government. Prime Bank’s corporate business provided tailored services to corporate and institutional clients. The financing is based on both conventional and Islamic Shariah mode. While providing large loans to their customers, the policy of Bangladesh Bank is also strictly followed. The Customer Relationship Programmed has been strengthened and frequent visits to the clients have been ensured to develop the existing relationship. Corporate finance in both modes (conventional and Islamic Shariah) showed steady growth. The sectors of financing include pharmaceutical, chemical, cement, ceramic, steel, micro finance, food industry, infrastructure and trade related businesses. It raises funds from the market for financing term loans, working capital at the most competitive rates and terms.

2.16. Islamic Banking:

For the development of Islamic Banking Business, 2006 was also a commendable year. It has been observed that compliance of Shariah has improved in 2006 as compared to the preceding years. According to their advice, Islamic Banking operation of the bank has been separated from the operation of Conventional Banking and shown separately in the bank’s financial statement. It is found that the investments and deposits grew by 38% and 89% respectively in the year 2006. The operating profit of Islamic Bank Branches grew by 45% during the year.

2.17  SME:

PBL took a strategic shift towards developing and expanding the SME financing, which has received considerable attention of the policy makers. During 2009, Prime Bank’s strategy was focused on marketing the Bank’s products to a wider range of customers and provided working capital and term loans to different manufacturers, traders and service providers including backward and forward linkage industries that fall into the SME universe. The bank is not only providing credit but also took steps to popularize the sector by participating in various trade shows organized in the country. Various refinancing facilities are given by the Government and UN bodies for developing and financing the sector are being utilized for this purpose. The activities would be strengthened by developing more products for the existing clients and also expanding its target markets to the semi-urban and rural areas. The SME outstanding stood at Tk. 2.2 billion achieving a growth rate or 111.77 percent.

2.18  Retail Banking:

The growth rate of their consumer financing were 64.29 percent during the year 2009. The loan schemes offered by the bank includes Home Loan, Loan against Salary, Marriage Loan, Car Loan, Hospitalization Loan, Education Loan, Doctor’s Loan, Any Purpose Loan, Travel Loan, CNG Conversion Loan etc. PBL arranged various promotional campaigns for the retail products. In order to give easy access to their products and to give the best possible services at the doorstep of their existing and potential customers, the bank introduced Direct Selling Services by recruiting highly trained and customer focused professionals. Their functions and responsibilities are closely managed and supervised by in-house banking officials. Road shows, television commercials, consumer meet, branding and merchandising programmers were put in during the second half of 2008 and will continue in the years ahead as an effective tool for promotions of business in these segments.

2.19    Credit Card:

In the year 2005, Prime Bank Limited (PBL) had launched VISA. Before that, PBL started its credit card operation in 1999 by introducing Master Card. Now PBL has become the first local bank of the country to achieve principal membership of both the worldwide-accepted plastic money network, i.e., Master Card and VISA. PBL has redesigned the credit card facility by providing the incentive of “Free Life Insurance Coverage” for their valued cardholders to migrate the financial risk.

Prime Bank Limited now made and agreement with Dutch- Bangla Bank Limited (DBBL) to share their booth, to help their customers using credit cards.

2.20. Import & Export Business:

The performance of the bank is this are is satisfactory. Total import and export business transacted were Tk. 91.4 billion and Tk. 68.5 billion respectively during 2009. The growth rate of the import business was 29.46 percent and the main items of import were industrial machineries, raw materials, commodities and other consumer products. The growth rate of export business was 33.58 percent and the items of export were RMG, shrimp, jute and jute goods, leather, tobacco, ceramic tiles, fresh vegetables, tempered glass, bone crust, betel nut etc. the growth of export gave the bank an edge in managing required foreign currency for meeting L/C commitments. The import and export businesses were contributed by the corporate clients of the bank. In export sector, there were significant additions of non-traditional items.

2.21.  Deposits:

The deposits balance of Prime Bank reached the level of Tk. 88.0 billion during 2008 from Tk. 70.5 billion of previous year. The growth rate is 24.83 percent. This was possible due to superior customer service delivery at the branch level, expansion of branch network to rural areas where foreign remittance flow is significant. Expansion of our branches at rural areas has provided the lower income groups with an access to modern banking system and receipt of remittances at reasonable swiftness. Fixed deposits, scheme deposits, savings deposits, short term deposits from customers remained the core deposits of the bank. Some of the deposits also offer insurance coverage. The bank also has many Shariah based Islamic products which are provided to the customers through Islamic banking branches of the bank. The bank always tries to give the highest return on the deposits of the customers.

2.22  Offshore Banking Units

The impressive growth of the economy during the last couple of years and the facilities provided to the foreign investors through opening of special export zones have attracted a lot of foreign investments in the country. PBL opened its Offshore Banking Unit at Saver, Dhaka Export Processing Zone and Chittagong Export Processing Zone as part of their expansion of branch operation. Opening of the offshore banking unit allowed the bank to serve the wage earners and the foreign investors better than before. The offshore banking unit at Dhaka EPZ already started generating operating profit. This indicates that PBL has now acquired strength and expertise to support the banking needs of the foreign investors. PBL also obtained a license for opening an offshore branch at newly declared export processing zone at Steel Mill Complex, Chittagong.

2.23  Hasanah:

2009 was also a commendable year for the development of Islamic Banking Business for the bank. PBL used the generic name of Hasanah – the brand name for Islamic products and services of the bank, which has been used in the Quran and the Hadith several times to denote good deed, welfare, virtue, beauty spot, that expresses PBL’s commitment for working towards the well-being of humanity through Islamic banking activities. The operating profit grew by 30.48 percent during the year under consideration. The non-performing loan of Islamic Banking Branches is 0.47 percent of their total investment. Total import and export business generated by the Islamic branches showed remarkable performance. Total import and export businesses handled were Tk. 5.9 billion and Tk. 5.3 billion respectively. PBL arranged an International Seminar on Islamic Banking Supervision, Basel II and Capital Adequacy. This seminar was first of its kind in Bangladesh, which was attended by participants from Bangladesh Bank, other Islamic banks and conventional banks including foreign banks having Islamic banking operations.

2.24. Remittance Business:

Remittance of Bangladeshi expatriates has started playing a significant role in the country’s economy. To assist overseas Bangladeshis, PBL also focused on handling remittance businesses and with that aim in view, opened rural branches where NRBs remit money as their preferred destinations. Most significant Endeavour here is to provide fastest delivery of remitted fund to the local beneficiary. To achieve this, PBL is continuously increasing the number of their rural branches and making arrangements with other local banks to achieve their goal in this respect. In addition to the opening of the exchange house in Singapore, Prime Bank entered into agreement with various exchange houses in USA, UK, Middle East and South Asian countries for inward foreign remittances of the Bangladeshi expatriates. PBL also participated in various trade fairs organized by trade bodies abroad to bring more customers under its net.

3. The Recruitment and Selection Process of PBL

To know the future demand of human resources, the HR division of PBL usually provides all the other divisions and branches with a general form at the beginning of the year. From the information collected from these forms, the HR division gets an estimate of the human resource requirement for the year. No long term human resource forecasting is done in PBL. The following table illustrates the number of branches of the bank and manpower in different years:

Table 3: Manpower of PBL in different years

Year

No. of Branches

No. of Employees

1996

10

239

1997

14

305

1998

18

362

1999

20

452

2000

21

518

2001

26

613

2002

27

730

2003

30

777

2004

36

894

2005

41

1024

2006

50

1172

2007

61

1400

2008

70

1551

2009

80

1639

2010

84

1844

2011

86

1978

2012 (up to the end of May)

90

2158

From these data, manpower may be estimated through regression analysis (such an analysis is provided in Appendix B).

The recruitment goals of Prime Bank Limited (PBL) are to attract and retain highly qualified human resources who will perform best in their respective areas. The bank not only tries to attract well-qualified candidates but also tries to identify and recruit people who are really interested to work in the bank for an acceptable period of time.

3.1. The recruitment philosophy of PBL is as follows:

  • PBL usually promotes from within the organizations, but when the need arises, the bank also hires from outside for vacancies at all levels.
  • PBL always emphasizes on hiring for a long period of time. The bank tries to attract and select those candidates who will move through the organizational hierarchy to the senior level positions in the future.
  • PBL has developed a corporate culture where employees are not treated as mere employees. They are treated as associates of the bank. Together, they form a family and all associates are the members of the family.

3.2. Types of Recruitment

PBL practices two types of recruitment

  • Yearly recruitment: this is done each year, according to the HR plan
  • Need-based recruitments: this is done when there is a sudden vacancy

3.3. Recruitment Sources and Methods:

PBL usually promotes from within the organization. But it also recruits from external sources. The external sources are:

  • Different universities
  • Competitors and other organizations
  • Unsolicited applicants

Campus recruiting will be handled by the HR Division and the overall planning for this will be done based on the Annual Manpower Plan. However, the respective business department/function requiring the profiles should have the responsibility and mandate to short-list the campus-based candidates. The skill base generally recruited through this route will be entry level positions. Therefore, the plan for campus recruitment will have to tie up with the placement season of various universities that are targeted for recruitment. The HR Division needs to identify a set of campuses based on the courses conducted there, any past experience of candidates from these campuses and the emerging requirements of the bank.

The HR Division will need to take a decision regarding the source of external recruiting considering variables like –

  • Available spread of candidates
  • Cost impact
  • Time needed

And the external recruitment methods include:

  • Advertising in newspapers, company website etc.
  • Employee referrals
  • Internships

3.4.  Selection Process:

The different steps if the selection process is described below in detail:

3.4.1.  Receipt of Applications

This is the first selection hurdle to join PBL. Candidates either send their CVs in application for a specific vacancy, or they send unsolicited CVs for any suitable position. The HR division collects job applications against each job vacancy. In case of newspaper advertisements, the applicants are given at least 3 weeks to apply. After a specific period, each and every job is closed for applying.

3.4.2 Sorting out of Applications:

The next step is the short listing of CVs. Usually the HR division is engaged in the short listing. But the HR division may delegate this step to the respective divisions (for which the selection is being carried out) to save time. To recruit experienced bankers, CVs may be sorted out from the collection of unsolicited CVs received. Or, another possibility is to find out experienced and competent bankers in other banks. Once potential candidates are thus found out, they are contacted and called for an interview.

3.4.3  Informing Candidates

After the applications are sorted out and a preliminary list is prepared, the candidates are informed and are called for a written exam (for entry level positions) or an interview (for experienced banker for mid level or senior level positions). For written tests, the bank issues admit cards through courier services seven to ten days prior to the exam.

3.4.4 Written Tests:

The employment test is generally an aptitude test which measures the candidates’ verbal ability, numerical ability, reasoning ability etc. The HR division contacts IBA/BIBM to design and conduct the recruitment tests on behalf of the bank. The HR division provides them with the desired academic qualification and the name of the vacant posts to construct the question paper for the test

3.4.5.  Interview:

The interviews that are conducted are panel interviews and not structured. The interview board consists of the MD, DMD and the Head of HR. Even in the selection of fresh graduates for TA or MT positions, those top level and executive level managers are present. Usually only one interview is conducted for selecting a candidate for a position. But in case of recruiting experienced bankers, sometimes more than one interview is conducted.

3.4.6.  Final Approval by Competent Authority:

After the interview is conducted and the interviewees are evaluated, the management committee decides who is to be selected and who is to be rejected. After this final decision, an ‘Offer Letter’ is made for each selected candidate. Once the candidates accept this offer, they are given the ‘Appointment Letter’. The candidates that are rejected are not informed.

3.4.7.  Physical Examination:

After the appointment letters are printed, the candidates are given one month for joining. First, the candidates have to go through physical examinations. If the result of these physical examinations is satisfactory, then the candidate is eligible to join the bank.

3.4.8.  Joining and Placement:

After the physical examination, the candidate needs to bring the result of the medical tests along with all the necessary documents and academic certificates for joining. After going through the formal joining and placement process, the candidates are finally employees of Prime Bank Limited.

3.4.9.  Characteristics to Look for in Different Stages of Recruitment:

In different steps of recruitment, the following characteristics should be looked for:

Techniques used to gather data

Characteristics to look for

Preliminary screeningAge, academic qualifications and performance record
Critical analysis testMeets minimum standards of mental alertness
In-depth interviewNecessary innate ability, ambition, loyalty and interaction skills
Verifying biographical data from referencesNo unfavorable negative reports on past performance
Personal judgmentOverall competence and ability to fit into the job position and the organization

3.5.  Appointment:

3.5.1 Classification of the post:

The employees of the bank shall be classified designation as shown in the above illustration. Any change, addition, in the classification and designation shall required prior approval of the board. An employee of the bank, other then an officer appointed to a particular category of the position shall continue in the same category. Provided that if he fulfills such condition as may be down in this behalf, he may be appointed to another category of posts by the competent authority.

3.5.2 Nationality:

No position shall be appointed to any post in the service of the bank unless he is a citizen of Bangladesh. Provided that the may in special cases, waive this condition subject to fulfillment of the to employment of foreign nation in Bangladesh.

3.5.3 Age :

A candidate shall not be less then twenty years more then thirty years of age at the time of appointment direct recruitment as a probationary Officer and not less than eighteen years and more then thirty years of age at the time of appointment by direct recruitment as a probationary employees other then an officer in the service of the bank. Provide than the board may in special cases, relax the upper age limit for reasons to be record in writing.

3.5.4  Physical Fitness:

No person shall be appointed in the service of the bank unless he is declared physically fit by the medical officer or the bank or any other Medical authority specified by the bank in this behalf.

3.6. Termination:

The service of provision or temporary employee shall be liable to termination by the competent authority without assigning any reason after giving him one months notice in writing or on payment of on more substantive pay in lieu of such notice and the probationary or the employees shall not be entitled to any form of composition for termination of services.

4. The Recruitment and Selection Policy of PBL

Personnel Management is by far the most important element of an organization. This is particularly true for a service organization like a commercial bank. Progressive companies pay special attention to recruitment, selection, training, orientation, evaluation, promotion and compensation of Executives, Officers.

4.1. Recruitment Procedure:

The success of a commercial Bank depends largely on the quality of services rendered to the clients. Quality depends on the competence and the quality of the Officers and Executives. Prime Bank Limited believes in paying competitive salary and emoluments to its employees and to get maximum services out of them. Therefore, the authority of the Bank has to be careful in recruiting the right person for the right job.

It should be the duty of the Managing Director along with the top Management to analyze the manpower requirement of the organization every year and fix up the number of Officers, Executives and other employees of each category required for effective operations of the Bank. The Board of Directors on the recommendation of the Management will be the supreme authority to sanction or to create additional post. Creation of a post implies commitment of fund for about thirty years.

Therefore, it is the responsibility of the management to examine the work load and do the job analysis work and to look into the real requirement of employees under various categories and to see whether an additional hand is really necessary.

Prime Bank must recognize the importance of manpower estimation and accordingly an organogram should be prepared for Head Office and for each Division & Branch. The organogram shall however, not be rigid, the Board may review and revise the organogram as may be considered necessary from time to time. Recruitment will be made to fill up the vacant posts as and when required by the competent authority as per power delegated by the Board.

4.2. Recruitment Category:

Recruitment to be made for the required post, which has to be determined & approved by the Board at the beginning of each year, either through inviting application from prospective candidates or through talent hunting.

Banking Cadre Services Model

Recruitment category will originate from the ‘Banking Cadre Services Model’ which has been incorporated in our policy as placed below:

Given the Banking Cadre Services Model, the normal source of recruitment of PBL is as follows:

4.3. Core Banking Cadre Service (CBCS):

  • CBCS will start with the recruitment of potential Management Trainees (MTs) fresh from the recognized & Prime Bank listed Universities.
  • With MT concept in place, normally, there will be no recruitment at the Mid/Senior level management position except in special circumstances to meet dire needs.
  • MT are the high potential fresh graduates/post graduates to be recruited in the bank management cadre service within policy
  • MT are the future leaders to move up to different leadership positions with gaining of experience & competence
  • MT are usually the FAST TRACKER – planned development, nursing and counseling for career growth are to be critically administered
  • At certain a stage, there will be natural turnover of MT and some will leave if blocked in the structure, then, bank will plan replacement with new MT
  • MT’s career progression and development will be closely monitored and ensure growth in the succession ladder up to future TOP leadership positions in banking.
  • MT recruited in core banking cadre, at times will be considered for other support service functions as required
  • Employees/Executives in ‘core banking cadre’ with professional competence &  background may move to the ‘banking support services cadre’ in the event appropriate positions in the job grade ladder are available to meet business needs.
  • Inter – bank transfer and between Head office & banks both in core banking jobs and banking operation services jobs would be the common phenomenon.

4.4.  Banking Operation Cadre Services (BOCS):

  • Since ‘banking operation jobs’ are of routine, repetitive and clerical in nature, in this segment, our recruitment sourcing will start with Trainee Assistant (TA) concept fresh from Universities.
  • Operation jobs are normally confined between TA and SO job grade in the operation cadre service. Employees with mediocre potential are the target group for recruitment.
  • Only employees with extraordinary achievements in job grade SO, may be considered up to PO/EO job grade through interview process.  An employee in SO job grade, if found ‘Very good’ (VG) or ‘Excellent’ (Ex) for last 3 consecutive years coupled with strong behavioral competence & knowledge, will qualify for promotion interview to the next job grade of PO. Same principle will apply for employees move from PO to EO level. However, not more than 15% of the total population will be considered for next promotion from SO to PO or from PO to EO level at any given point of time.
  • Inter- cadre transfer only in operation jobs across the functions would be considered.

4.5. Banking Support Service Cadre (BSSC):

There are two segments of jobs in BSSC i.e.

(I)          Operation Jobs: ranging from TA to PO/EO level where employees will be limited in terms of potential.

(II)       Executive Jobs: starting normally with  potential ‘Probationary Officer’ with requisite job requirement & competence fresh from the recognized & listed Universities. MT at times will be recruited sourced through the recruitment process in the ‘Core Banking Services Cadre’ within policy.

(III)    Executive jobs will also be manned through recruitment from the market, candidates having required professional experience, competence &  background as well as through internal transfer of professionals from the ‘Core banking Cadre Service’ depending on the availability of resources.

(IV)    Inter-transfer both in executive and operation jobs would be considered

(V)       Normally no transfer from BSSC to CBCS would be considered. However, executives having core banking professional competence may be transferred to CBCS in the event positions are available in job grade ladder and the bank management considers it fit and appropriate to do so in the interest of business.

(VI)     High potential executives may move up to SEVP level / functional heads in BSSC

The following chart will summarizes the recruitment pattern in different cadre services:

Table 4: Recruitment Pattern in Different Cadre Services

Recruitment

Core Banking

Banking

Banking

Profile

Jobs

Operation Jobs

Support Jobs

MT

(Fresh)

Normal Regular

No

Functional Needs

(Occasional)

TA

(Fresh)

No

Normal Regular

Functional Needs

(Occasional)

Probationary Officer

(Fresh)

No

No

Functional Needs

(Occasional)

Exp. Professionals

Outside Bank

Occasional

No

Functional Needs

Needs

(Occasional)

Given the Banking Cadre Services structure as above, for Prime Bank, recruitment should be made in the following three Categories:

1)    Trainee Assistant

2)    Management Trainee

3)    Experienced Officers

4.5.1.  Trainee Assistant Recruitment:

Trainee Assistant (TA) for operation jobs as defined earlier shall be recruited either:

a)      Through press advertisement in at least 2 (two) national dailies.

b)      Directly through talent hunting but not more than 50% of the yearly recruitment/requirement under this grade.

Every candidate who applies in response to the press advertisement shall have to appear at a written test & appear before the Selection Committee for an interview. Candidates who are selected by head hunting will have to appear before the Selection committee for evaluation.

Candidates must not be over 30 years of age and should have minimum 8 points based on educational qualification & no 3rd class/division in any examination. The candidate should also have minimum Computer knowledge on the following:

  •   Operational system     :   Windows
  •  Word Processing         :   MS Word
  •  Spread Sheet   :   Excel

Typing speed: 40 words per minute (For Type/Telex/Computer – MS Word) & 25 for other categories of Computer operation.

4.5.1.1.  Written Test and Interview Model for TA:

Content for the written test (100 marks) should be as follows:

  •  Ability to write both in Bengali & English
  •  General arithmetic
  •   General knowledge
  •  Test organized by bank management or outsourced (IBA/BIBM/Others)
  •   60% marks will qualify a candidate to appear before interview/viva

In the face-to-face interview, the following are taken into consideration:

  •   Verbal communication
  •   Appearance
  •   Spoken English (moderate)
  •   Attitude
  •  Etiquette & mannerism
  •   Family background & need
  •   Reference personnel
  •   willingness to stay longer in routine operation job /cash
  •    60% will qualify a candidate for primary selection and medical test before formal offer is made in written

4.5.1.2.  Interview Committee and Interview Rating Sheet :

An interview committee not less than 4 members consisting of executives SVP & above will conduct the face to face interview / Viva for final selection of TA

Interview evaluation sheet in respect of each candidate will be in place considering all the factors above and will be put on record.

4.5.1.3.  Probationary Period and Confirmation of Service of TAs:

Trainee Assistants will be on probation for a period of 01 (one) year, which may be extended by the competent authority if an officer, fails to show satisfactory performances during the period of probation. On satisfactory completion of probationary period their service will be confirmed as Assistant Officer in the following manner:

(a)          TA(s) will pass through an evaluation process during probation. A separate ‘Performance Evaluation Form’ will be in place. Minimum G+ would be desired rating for confirmation as AO job grade.

(b)         For the TA(s) who will score less than G+ rating, the probation period may be extended for improvement not exceeding 06 (six) months or may be terminated.

(c)          Subsequent growth in career limited to PO/EO level will depend on the job performance and demonstration of skill, knowledge & behavioral competence.

4.5.1.4.  Salary Package for TAs:

TA salary package is TK 10,000/- per month with basic pay of TK 7000/- per month

4.5.1.5  Other terms & conditions:

  •   Festival bonus & Profit bonus will be paid within policy on basic pay
  •   LFA & PF allowed on confirmation in service as AO in the pay scale
  •   No bond in service

4.5.2.  Management Trainee Recruitment:

Management Trainee shall be recruited either through:

a)      Press advertisement in at least 2 (two) national dailies.

b)      Directly from amongst the interns (business graduates/post graduates) at Prime Bank studying in our listed Universities. The revised list of our enrolled Universities showing CGPA, internship allowance etc. are as follows:

Current Listed Universities

CGPA

Allowance (Internship)

Revised Listed Universities

CGPA

Allowance (Internship)

IBA

3

350

IBA

3

350

NSU, IUB, EWU, BRAC, AIUB & BIBM

3

300

NSU, IUB, EWU, BRAC, AIUB & BIBM

3

300

DU, JU

3.25

250

DU, JU, CU,  IUC,  USTC: CTG, SUST: SylhetKU: Khulna, RU: Rajshahi

3.25

250

Special Request Approved by MD

3

200

Special Request Approved by MD

3

200

NB: With inclusion of Universities at Chittagong, Khulna and Rajshahi, the bank will be able to extend responsible services with the interns in these cities toward education as well as meeting bank’s ad-hoc project requirement from time to time.

  • The candidates for the post of Management Trainee must not be over 30 years of age on the date of application.
  • In addition to CGPA as mentioned above, the candidates must have at least two first divisions in their academic feat in public examination
  • No 3rd Class/Division/CGPA less than the standard as shown in the above chart
  • Have minimum computer knowledge of the following:-

Operational system     :           Windows

Word Processing         :           MS Word

Spread Sheet               :           Excel

4.5.2.1.  MT Category, Requisite Qualifications and Placement Status:

There will be two categories of MT recruitment and placement profile:

a)      Graduate MT cadre and

b)      Post Graduate MT cadre

The structured profile of Graduate and Post-Graduate MT is as follows:

(a) Graduates:

QualificationCGPAListed Varsities

Placement after 2 years probation

BBA ONLY3.00IBA

Senior Officer

3.25Other listed

(b) Post Graduates:  

QualificationCGPAListed VarsitiesPlacement after 2 years probation
MBA, MBM, ECONOMICS, MASTERS IN FINANACE & ACCOUNTING3.00

IBA

Principal  Officer

3.25

Other listed

4.5.2.2.   Period of Probation:

MT will pass through a period of probation for 2 years and on successful completion of probationary period will be confirmed in service according to category as shown above.

4.5.2.3.  MT Exposure on the Job and Performance Evaluation:

MT will be exposed during 24 months traineeship period in the following portfolios in the manner as follows besides training & monthly counseling in group:

  • General banking  management            8 moths
  • Credit Management                            8 months
  • Foreign exchange management           8 months

Performance Appraisal and interview by the MC will be conducted at least a month before completion of 24 months and only VG & Excellent rated trainees will only be confirmed in substantive positions.

Subsequent career progression depends on Performance, Potential & Merit of the individual candidates.

4.5.2.4.   Confirmation in Service:

Performance appraisal and interview by the management committee will be conducted at least a month before completion of 24 months and only VG and E rated trainees will be confirmed in substantive positions approved by MD within policy framework.

4.5.2.5.  Mode of Recruitment for Management Trainees:

a) Recruitment through Press Advertisement: Every candidate will appear for a written test. The subject matter of test should be general knowledge, Arithmetic, English, Economics/ Banking as may be decided by the Management from time to time. For this purpose Prime Bank Limited may take the help of outside experts for setting the questions, supervising the examination work and marking the scripts.

A candidate must secure minimum 60 % mark in written Test to be eligible for VIVA/interview as Management Trainee.

Written Test will however not be required for the following:

i)        MBA/ MBM from IBA & BIBM with minimum CGPA 3.00

ii)      BBA/MBA from Bank’s other approved universities, i.e., NSU, EWU, BRAC University, IUB & AIUB with minimum CGPA 3.25/

They will be recruited based on performance in interview with the Selection Committee.

b) Recruitment from the Interns: They will be recruited based on their performance during internship period, evaluation report of their supervising officials and performance in the interview with the Selection Committee.

However in no case more than fifty percent of the interns will be eligible for appointment. Interns selected under this criterion should join within one month of completion of his course.

An internee who has completed his internee more than six months ago will not be eligible under this criterion.

The appointment will be made according to requirement on the basis of a panel to be prepared in order of merit by the Interview Committee and after approval of the competent authority.

While interviewing the candidates for final selection, due weight should be given on the educational back ground, professional excellence and technical skill in the appropriate field.

4.5.2.6.  Grading/Marking for Management Trainees:

The Selection Committee will follow a grading system as follows:

(a)        Education                                :           16 Marks

(b)        Interview Performance           :           24 Marks

(c)        Written Test                            :           60 Marks

Total 100 Marks

The Human Resources Division will handle all matters relating to recruitment and selection as staff function. The following steps may be followed for systematizing the selection procedure in case of selection through press advertisement.

4.5.2.7  2Remuneration Package for MTs:

Table 5: Remuneration Package for MT

Category

Package

Year

Basic

MT Category – I

TK 18,000 /-

1st Year

12,600 /-

TK 22,000 /-

2nd Year

15,400 /-

MT Category – II

TK 20,000 /-

1st Year

14,000 /-

TK 25,000 /-

2nd Year

17,500 /-

Allow Leave Fair Assistance (LFA) from 2nd year

Provident Fund (PF) after confirmation of 2 years

Bonus will be allowed on basic pay

4.5.2.8  Flowchart of MT Selection Procedures Against Press Advertisement:

The Human Resources Division will handle all matters relating to recruitment and selection as staff function. The following steps maybe followed for systematizing the selection procedure in case of selection through press advertisement:

The same process will be followed in case of other recruitments beside MT. However, when in urgent need, the bank may recruit employees without the process of press advertisements.

Flowchart of MT Selection

4.5.2.9.  Interview Committee, Evaluation and Final Selection of MT:

An interview committee consisting of the MD, all DMDs and Head of HR Division will conduct the face to face interview/viva for final selection of MT.

Interview evaluation sheet in respect of each candidate will be in place considering all relevant factors and record will be maintained for reference.

4.5.3. Recruitment of Probationary Officers:

The following are the salient features in the recruitment process for Probationary Officers:

(a)                Direct entrants in the “Officer” Job Grade are termed as the “Probationary Officers”, specially meant for the “Banking Support Services Cadre” (BSSC).

(b)               Probationary Officers are the people of strong potential with their post graduation in various disciplines who will be recruited from the bank’s listed universities only. The are usually the consistent “VG (Very Good) & E (Excellent)” performers who after entry as probationary officers will gradually succeed in executive jobs in BSSC and ultimately move to leadership positions through proven track record of performance on the job with gaining of experience & competence

(a)                Sourcing of the candidates will be done through campus contact with all listed universities/institutions. The process is summarized below for clarification:

  1. Contact listed universities and collect CVs of the potential post graduates as per job profile (education and other competence) and prepare the short list
  2. Written Test – 60 marks: Eligible short listed candidates will appear for a written test. The subject matter of the test should be general knowledge, arithmetic, English, economics/banking, as maybe decided by the management from time to time. For this purpose, Prime Bank Limited will organize written tests with its own resources or may take the help pf outside experts, e.g., IBA, BIBM or any other suitable agency for setting the questions, supervising the examination work and scoring the scripts. A candidate must secure minimum 36 out of 60 (60%) in the written test to be eligible for viva/interview for the post of Probationary Officer within policy.
  3. Viva/interview – 40 marks: A candidate must secure minimum 24 our of 40 (60%) in the viva/interview to qualify for the final selection as Probationary Officer within policy.
  4. A four-member interview committee consisting of the concerned functional heads, DMD and Head of HR Division will conduct the face to face interview/viva for final selection of Probationary Officers. The MD will finally examine the recommendations; if he wishes, he may personally meet the candidates and accordingly may approve of disapprove recommendations for appointment. Interview evaluation sheet in respect of each candidate will be in place considering all relevant factors and record will be maintained for reference.

(b)               A & B listed universities and profile of candidates for probationary officer:

Table 6: Listed universities and profile of candidates for probationary officer

Qualifications

CGPA (minimum)

Universities/Institutions

MBA (Marketing, Finance, HR, Banking), International Relations, Public Administration, English, Economics, M.Com. in Management, Finance, Accounting/other business studies, Masters in Computer Science, Computer Engineering etc.

3.00

Bank’s A List:

IBA

3.25

Bank’s A List:

NSU, IUB, EWU, AIUB & BRACUniversity

3.25

Bank’s B List:

DU, JU CU, IIUC, USTC, SUST, KU, RU and other recognized engineering universities

4.5.3.1  Period of Probation and Confirmation in Service of Prob. Off.:

The Probationary Officer will pass through a probationary period of 1 (one) year from the date of joining. Performance appraisal and interview by the management committee will be conducted at least a month before completion of 12 (twelve) months and only VG (Very Good) and e (Excellent) rated officers will be confirmed in substantive positions approved by the MD within policy framework. Subsequent career progression depends on performance, potential & merit of the individual candidates.

4.5.4.  Recruitment of Experienced Executives/Officials:

Prime Bank will pay focused attention to develop its own manpower through training process. It must, however, need quality human resources to run its operations and expansion program through continuous training and development strategy. Recruitment of experienced Bankers from other Banks will however, continue till such time MT process is geared up in core banking leadership positions.

Accordingly, as per requirement of the bank experienced Executives/ Officers may be appointed from time to time strictly in accordance with the job profile of the positions. After proper scrutinizing of the application received from the eligible candidates, they will be interviewed by the Management Committee. The Management Committee should ensure that the minimum qualifications, experience and competence required for a given job is rightly matched.

Exceptions may, however, be made in case of extra ordinarily capable candidates. This means that for such cases educational qualification may be relaxed and similarly length of experiences may also be reduced considering candidates’ special training and experiences in particular field of banking business.

The cases of selected candidates will be placed before the competent authority for approval.

There will be no probation period for experienced Officers/Executives who join from other Banks, if their services were confirmed by their earlier employers.

4.5.4.1.  Recruitment Criteria for Experienced Executives/Officials:

The bank will prepare “Job Profile” against each job available in the job grade ladder covering three service cadres in functional areas and all recruitments will be made according to the respective job profile.

There will be a separate “Job Profile Manual” for the bank to be maintained and followed for recruitments.

Experienced Officials from the market meeting the bank’s job profile will be recruited within policy,

In case of candidates having high potential, not more that one job grade up in the job grade ladder will be considered.

The basis to be followed for calculation of points in respect of educational qualification is given below:

Examination

First Division

Second Division

(CGPA 3.00 and above out of 4.00)

(CGPA 2.75 to 2.99 out of 4.00)

SSC

3

2

HSC

3

2

Hones.

3

2

Masters

3

2

MBA/Higher Professional Degree

4

3

4.5.4.2.   Criteria to be followed for Executive/Officials:

Sl.

#

Name of

The Posts

Requirement/Criteria

With minimum qualifications

B.A. / B.Com. / B.Sc.

With higher qualifications

DMD

5 years as GM or equivalent position in any scheduled Bank & minimum length of service 28 years4 years as GM or equivalent position in any scheduled Bank & minimum length of service 25 years

SEVP

4 Years as GM or equivalent position in any scheduled Bank & minimum length of service 25 years3 years as GM or equivalent position in any scheduled Bank & minimum length of service 22 years

EVP

7 Years as DGM/3 years as GM or equivalent position in any scheduled Bank & minimum length of service 22 years5 years as DGM/2 years as GM or equivalent position in any scheduled Bank & minimum length of service 20 years

SVP

5 Years as DGM/1 year as GM or equivalent position in any scheduled Bank & minimum length of service 20 years3 years as DGM/1year as GM or equivalent position in any scheduled Bank & minimum length of service 18 years

VP

2 years as DGM/5 years as AGM or equivalent position in any scheduled Bank and minimum length of service 18 years1 year as DGM/3 years as AGM or equivalent position in any scheduled Bank & minimum length of service 16 years

SAVP

3 years as AGM or equivalent position in any scheduled Bank & minimum length of service 16 years2 years as AGM or equivalent position in any scheduled Bank & minimum length of service 14 years

AVP

2 years as AGM/4 years as SPO or equivalent position in any scheduled Bank & minimum length of service 14 years1 year as AGM/3 years as SPO or equivalent position in any scheduled Bank & minimum length of service 12 years

FAVP

3 years as SPO or equivalent position in any scheduled Bank & minimum length of service 12 years2 years as SPO or equivalent position in any scheduled Bank & minimum length of service 10 years

SEO

3 years as PO or equivalent position in any scheduled Bank & minimum length of service 10 years2 years as PO or equivalent position in  any scheduled Bank & minimum length of service 8 years

EO

3  years as SO or equivalent position in any scheduled Bank & minimum length of service 8 years2 years as SO or equivalent position in any scheduled Bank & minimum length of service 6 years

PO

4  years as Officer in any scheduled Bank & minimum length of service 6 years3 years as Officer  in any scheduled Bank & minimum length of service 5 years

SO

3  years as Officer in any scheduled Bank & minimum length of service 4 years2 years as Officer in any scheduled Bank & minimum length of service 3 years

Officer

 2 years as Junior Officer in any Scheduled Bank & minimum length of service 3 years.2 years as Junior Officer in any Scheduled Bank & minimum length of service 3 years.

JO

Minimum 2 years as Assistant Officer in any Scheduled Bank. Minimum 2 years as Assistant officer in any Scheduled Bank.

AO

Direct recruitDirect recruit

4.6. Requirement for all Employees:

(i)     He/She must be a citizen of Bangladesh

(ii)   Third division/class in his/her academic attainment shall not be considered for employment in the Bank.”

(iii) He/She must be physically fit. All persons to be appointed by the Bank will have to undergo a medical test by the Bank’s approved Physician/ Medical Officer so as to ascertain that they are physically and mentally sound health. No person shall be appointed in the service of the Bank unless he/ she is declared physically and mentally fit by a medical officer of the Bank or by any other Medical authority specified by the Bank in this behalf.

4.7.  Restriction on Appointment:

The following categories of employees from other Bank/Organization shall not be employed:

Employees against who there are pending charges or who are dismissed, discharged, terminated and forced retired.

Employees who do not submit formal release order from the immediate past employer

However, an honorably retired person may be engaged for a particular assignment on a contractual basis.

4.8. Policy Changes:

The Management reserves the right to change or modify or withdraw any of the clauses of the policy at any point of time with the approval of the Board of Directors.

The effectiveness of the policy will be reviewed from time to time to accommodate changes in the interest of the business.

5.  Analysis of the Recruitment and Selection Process of PBL

Human Resources planning are the first stage of an effective recruitment and selection process. It is not only a matter of satisfying the present HR needs of an organization, but also an activity that influences the shape of the organization’s future.

5.1 The Strengths of Recruitment and Selection Process of PBL

i)              The management of PBL cares for the quality of service as well as the quality of its human resources. As a result, PBL

ii)            The recruitment and selection is quite fair and square. Everyone at the HR Division is honest and impartial which promotes the environment of accountability.

iii)          Internal growth creates an attachment between the employees and the organization. Moreover, internal growth has increased the recruitment and selection efficiency of the HR Division, since it has better knowledge about the applicants’ knowledge, skills, abilities and other qualifications.

iv)          The recruitment and selection process of PBL emphasizes more on who fits the organization, rather than who fits the job. Thus, it has created a unique organizational culture and the whole HR Division has ensures a friendly and caring working environment.

5.2   The Weaknesses of Recruitment and Selection Process of PBL

i)          PBL’s HR planning can be made more effective if it is revised more often according to the change in this fast moving industry.

ii)            Statistical measures such as correlation analysis and regression analysis are not applied to predict and analyze the recruitment and selection requirements more precisely.

iii)          Quantitative methods are not practiced in determining utility in recruitment and selection. There is no feedback system established to find out the efficiency of the system and correct its drawbacks.

iv)          No study is conducted to justify the effectiveness of the recruitment tests.

v)            Regret letters are not sent to the candidates who are not selected after joining of the finally selected candidates.

vi)          PBL does not always check references properly, which may lead to a grave problem for the organization.

6.1  Analysis of Findings on Questionnaire

1.      Qualification of the candidates.

Answer

Response

Percentage (%)

MBA

8

40

BBA

6

30

MBM

1

5

Masters form any subject

5

25

Others

0

0

 2.      Candidates from which University?

Answer

Response

Percentage (%)

University of Dhaka

6

30

University of Chittagong

2

10

JahangirnagarUniversity

4

20

University of Rajshahi

2

10

Reputed PrivateUniversity

4

20

Others

2

10

3.      Among various aspects of the bank, which of the following aspects did you consider most?

Answer

Response

Percentage (%)

Location of Bank

1

5

Islimi Bank

2

10

Size of Bank

2

10

Reputation of Bank

12

60

Online Banking

2

10

Personal Relationship

1

5

 4.      Are you happy for the recruitment process of the Prime Bank?

Answer

Response

Percentage (%)

Yes

14

70

No

6

30

5.      Does the Prime Bank follow recruitment process?

Answer

Yes

18

90

No

2

10

 6.      What is your opinion about the recruitment process of the Bank?

Answer

Response

Percentage (%)

Excellent

2

10

Very Good

4

20

Good

4

20

Satisfactory

8

40

Dissatisfactory

2

10

7.  What is your opinion about the formalities that the bank provides for recruitment?

Answer

Response

Percentage (%)

Excellent

2

10

Very Good

4

20

Good

4

20

Satisfactory

8

40

Dissatisfactory

2

10

 8. How much time, it takes to call after submission the application?

Answer

Response

Percentage (%)

Within 1 Month

2

10

Within 2 Month

10

50

Within 3 Month

8

40

Above

0

0

9.  Are you satisfy that terms and conditions of the Prime Bank?

Answer

Response

Percentage (%)

Excellent

2

10

Very Good

4

20

Good

10

50

Satisfactory

2

10

Dissatisfactory

2

10

10. What your view about the behavior of the employee when you are entry level officer?

Answer

Response

Percentage (%)

Very Friendly

2

10

Friendly

4

20

Satisfactory

8

40

No comment

6

30

11.  Do you think that any limitation of Prime Bank for getting job?

Answer

Response

Percentage (%)

Yes

4

20

No

16

80

In this report, I have collected the data from various employees. They have told about their opinion and actual situation of the Prime Bank ltd. At the present time most of the candidates are MBA, few are MBM and others. MBM degree holder gets chance direct. They have no exam to be entry level officer. Prime bank also consider the university or institution. IBA gets extra priority than Dhaka University (DU), Jahangirnagar University (JU), Rajshahi University (RU), Reputed private University. Most of the candidates are happy but few are unhappy regarding the recruitment process of prime bank limited. There are some suggestion of the candidates is following:

  • To give chance for the meritorious student by reducing personal selection.
  • Time should be reduced for the candidates after submission the application.
  • To reduce terms and condition for entry level officer.
  • To reduce the limitation.
  • To ensure validity of the job.

6.2  Identification of main problems and findings:  The main vision of prime bank has been successfully by increasing its revenues, deposit and branch in Bangladesh. Although there are no major problems at prime bank, some of the problems observe as flow:

Technological advancements: Prime bank has equipped its branches will all major IT tools in the industry like ATMs, fax machine, photocopies, printers, latest computers and good connective architecture. Hoe ever it has been observed that when its time to work, there are many facilities seen in the different devices used by prime bank. Especially its connectivity architecture and remains office with the main server, that creates problems to the customers.

Job Advancement:  There is no advancement procedures for lower staff members or junior executives that have join recently at prime bank. The main problem was observed that the lower staff should be trained about the operations of the bank and also the junior should be given promotions by defining the criteria’s like performance etc.

Training and Developments: There are effective training centers of prime banking Bangladesh. The problem with Training and Development is that it is only available for the high level officer and not for lower staff members.

Lack of employees in some departments:  Although prime bank is very good employer of talent professionals at different branches, however it was observed that there were some departments in the bank lacked the number of professional in that resulted in efficiencies in that department.

Amenities at Branch:  Providing amenities like separate room for prayers because the currently of employees pray in the conference room of the branches. Also separate room should be made for the account department for storing of the vouchers at it is done in the conference room.

Incentive Schemes:  There is no scheme for employees for prime bank. Like scholarship schemes for employees want to push higher education. Prime bank although give a number if incentives that want to push higher education. Prime bank although give a number if incentives to an employees, like personal loans at normal markup but they are only provide to employees that are in higher ranks. Education fees are also returned by prime bank to its employees after having finished their studies.

7. Recommendations

Several recommendations for the existing recruitment and selection policy and procedure are described here.

7.1   Stop Accepting Hard Copies of CVs

PBL should start taking CVs online and gradually stop taking hard copy CVs altogether, at least for fresh graduates who are candidates for entry level positions. This will significantly reduce the time needed is sorting the CVs. It will also facilitate the maintenance of a database of CVs of potential candidates for future reference. Also, it will save a lot of time and automated regret letters may be sent with much ease.

7.2   Maintaining a Database of CVs

The bank should maintain a database of CVs of all applicants, which would be easier if applying online is encouraged. PBL may also maintain a separate database of candidates who have been selected. From this database it will be evident after a while, which university graduates are more suitable for the jobs in PBL. Because, it can clearly be seen which graduates are doing better during the recruitment and selection process of the bank. From then on, PBL can target and advertise only in those universities and institutions for candidates.

7.3   Short-listing of CVs

A proper and objective guideline should be set before the initial short listing is done:

i)              The CVs received through the sourcing process is firstly screened by the HR Division to determine a fit against the job specification. Screened and short-listed applications should then be forwarded to functional heads to draw a short list for the recruitment exam or interview.

ii)            A final short list should be drawn up by the functional units/departments and forwarded to the HR Division; enclosing short-listed and rejected CVs. Rejected CVs of possible future interest could be sorted in a database. But this is not done in PBL. Once a CV is rejected, no record of it is kept.

iii)          Based on the short list received by the HR Division, letters to the short-listed candidates should be issued specifying a date and time for the interviews. Instead, the candidates are called on the phone for the interview. Although this probably saves cost, it has other disadvantages, e.g., it is very time consuming. The practice of sending letters to the candidates should be started.

7.4   Testing the Validity of the Written Exams

Currently, the validity of the written exams is not being tested. PBL should find out whether their written exams are valid, that is, whether the tests measures what they claim to measure. The written exams for the entry level positions are usually cognitive aptitude tests which measure a candidate’s verbal ability, numerical ability, reasoning ability etc. But such tests do not assess an applicant’s ability to perform his/her job properly, that is, whether he/she has an understanding of the duties and responsibilities of the position for which he/she is applying. That’s why ‘job knowledge tests’ may be used along with the existing aptitude tests.

The questions of the recruitment test should depend on –

  • The actual skills required to carry out the job
  • Potential sources of recruits
  • The culture of the organization
  • The extent to which recruitment is devolved to line managers
  • The HR strategy

7.5   Introducing Job Knowledge Tests

A primary advantage of a job knowledge test is that it is by definition job-related. A test for any specific organizational job can be designed based on the data gathered from an in-depth job analysis. These tests may require written responses; they may also be orally administered exams. These tests should usually consist of a few key questions that would distinguish the qualified from the unqualified.

7.6   Introducing Assessment Centers

An assessment center is a selection technique for identifying management potential. In assessment centers, potential candidates are subjected to different exercises constructed to simulate the job for which they are applying. Candidates participate in a series of activities similar to those they may be expected to encounter in the actual job. These activities may include management games, leaderless discussion groups, mock interviews and other simulations. A team of assessors observe and evaluate the participants. Both Job knowledge tests and assessment centers can evaluate how a candidate will perform in the actual job. PBL should think about introducing assessment centers as one of its selection tools.

7.7   Realistic Job Preview

Many candidates have unrealistic expectations about a prospective job or employer. These wrong perceptions can have negative consequences later for an organization if such candidates are hired, e.g., job dissatisfaction, absenteeism and turnover. To correct this situation, PBL should provide a clearly written job description to the candidates as well as a realistic job preview before recruitment so that the candidate can have a clear picture about the job he/she is going to take and the organization he/she is going to work for. A realistic job preview should convey both positive and negative aspects of the job and the organization objectively and in an unbiased manner.

7.8   Background Investigation

Reference checks should be done only for candidates who have been approved by the recruitment panel for the job. Reference checks should be carried out for all potential permanent employees. This is important in order to verify information and ensure that the organization is aware of any serious problems in the candidate’s past. There are several different background checks that can be done on potential candidates.

Types

Characteristics

1.CreditOften performed for positions that involve financial responsibilities
2.Criminal recordThese are recommended for positions which involve close, unsupervised contact with the public, e.g., any type of position that is considered to be “security sensitive”.
3.Past employer(s)This should be done on all new employees. In order to get the most in-depth and useful information about the candidates, it is necessary to contact the supervisors and the HR Division of the applicant’s previous organization.
4.Personal referenceThis usually consists of references from friends, relatives or coworkers. This type of reference check should never be used as a substitute for no. 3.

But these are often not done in PBL. The HR Division should carry out two reference checks for every potential permanent employee prior to the final appointment.

7.9   Interviews

The interviews need to be made more structured, which would contain only job related questions and each question will have a specific answer. This way, the interview will be more reliable, objective and fairer. Also, it is a common practice in PBL for the MD and DMDs to be present in the interview board even for interviewing candidates for MT or TA. This wastes their valuable time. The fresh candidates can be interviewed by more junior level executives.

7.10     Interviewer Training

Lack of training is a serious interviewing problem. PBL does not provide any interviewing training for its managers. Because of this lack of training, goals are not set for the interview, the wrong questions are asked. , the right information is not secured, biases are not controlled, poor selections are made etc. PBL should start training its managers on better interviewing techniques.

7.11     Strive to Reduce the Turnover Rate

The rate of turnover for this bank is quite high. The turnover rate of PBL for the last 5 years is given below:

Year

No. of Employees

Rate of Turnover (%)

2005

1024

8.44

2006

1172

8.92

2007

1400

6.61

2008

1551

7.31

2009

1639

7.49

2010

1793

7.16

2011 (Up to the end of May)

1921

7.94

This is how the Turnover is calculated:

Period

Opening Status

Entry

Exit

Ending Status

Rate of Turnover

Jan 08 to Dec 08

1400

265

108

1556

108*2*100/(1400+1556)

= 7.31%

PBL should strive to reduce this high rate of turnover by recruiting effectively.

7.12     Stop Policy Violation

There has been policy violation of the recruitment and selection policy in terms of criteria and procedure violation. For example, it is against the policy to recruit interns from universities that are not in the list given in the policy. But the graduates of such universities that are not listed in the policy are being recruited as interns. Also graduates from listed universities but not having the required CGPA are also recruited as interns sometimes. These sorts of policy violations occur as a result of requests of high officials. An example of procedure violation has been going on for quite some time. That is there were no written exams being held for recruiting TAs until very recently.

Conclusion

The success of a commercial bank depends largely in the quality of service rendered to the clients. Quality of service depends on the competence and the quality of the employees of the organization. Therefore, the authority of PBL has to be careful in recruiting the right person for each job. As has been seen, the recruitment and selection process of PBL has rooms for improvement. The policy and process should be revised. So although the process they have been adopting so far has been somewhat effective, to adapt to the changing times, the process should be revised and streamlined.

Some recommendations suggested in the report are summarized here:

  • Stop accepting hard copies of CVs
  • Maintaining a database of CVs
  • Testing the validity of the written exams
  • Introducing job knowledge tests
  • Introducing assessment centers
  • Providing the candidates with a Realistic Job Preview
  • Start doing background investigation
  • Start training the interviewers on interview techniques