Origin of our report As a requirement of the course MGT 351 (Human Resource Management), this group project report is assigned to us by our course instructor Ms. Shahanara Bhuiyan. Objective of our report The main objective of this project is to focus on the Human Resource activities of Bank Asia. We would like to focus on the following areas: 1. Recruitment & Selection And also we want to relate the theoretical aspects of HRM with the practical aspects. Collecting Data- Sources and Methods We would like to follow the following 2 methods in our research work: 1.
Primary Method: Under this we would like to take the interview of the Human Resource manager and also the employees of HR department of Bank Asia. 2. Secondary Method: Website (www. bankasia-bd. com), books, HR policy manual, annual report and newspapers will be our secondary sources. Brief overview of Bank Asia Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The paid up capital of the Bank is 930 million. The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets.
The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. Within a short span of time Bank Asia has established itself as one of the fast growing local private banks. It has at present a network of Twenty two branches serving many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery channel is its own as well as shared ATM Network. Bank Asia has a network of 25 ATMs out of which 6 it owns. The other 19 ATMs are shared through ETN with eleven other banks.
Since its humble beginning in 1999, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank. In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market’s history and its shares commands respectable premium. The asset and liability growth has been remarkable.
By Dec 2005 the total asset of the Bank grew to Tk 23,380 million, increase of almost 31% comparing to 2004. As of Dec 2005 deposits increased to Tk 18,500 million, an increase of 37% over that of 2004, and Loans & Advances reached Tk 17,870 million, an increase of 50% over that of 2004. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank’s investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline.
Bank Asia is maintaining it’s competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stelar Online Banking software enables direct linking of a client’s account, without the requirement for a separate account. [Sources:http://www. bankasia-bd. com/about_us. php] [Accessed 15th November 2006] Vision of Bank Asia Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream.
Its vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty. [Sources:http://www. bankasia-bd. com/vs_statement. php][Accessed 15th November 2006] Mission of Bank Asia A mission statement defines what business the organization is in, including why it exists and who its customers are. [Source: DeCenzo and Robbins, Fundamentals of Human Resource Management, Eighth Edition] The mission statement of Bank Asia is as follows: To assist in bringing high quality service to the customers and to participate in the growth and expansion of national economy.
To set high standards of integrity and bring total satisfaction to theclients, shareholders and employees. [Sources:http://www. bankasia-bd. com/ms_statement. php][Accessed 15 November 2006] Bank Asia’s Business Ideology To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of professionals. [Sources:http://www. bankasia-bd. com/ms_statement. php][Accessed 15 November 2006] Services of Bank Asia Gradually Bank Asia increases its product list. Every year it launches 2 products. Since establish, its product list is so healthy and includes most features.
Whenever, they launch a product, they look deeply in its technical issue. This means, how the product will be techno based and support online features. Considering these criteria, they have produced six products. Each product contains its specific link. However another related service or special features are also displayed follows: The following is a brief description of some of their services: Sms banking Through SMS facility clients can access account using his mobile phone from anywhere, anytime at his convenience to know the account position. SMS Push service: When any amount is debited or credited from client’s account then within 5-10 seconds he will get a message. The message includes the beginning balance, the amount debited or credited and the last balance. This facility is only available for Grameen Phone and City cell subscribers. • SMS Pull service: Every registered Grameen Phone and City cell subscribers can check their account balance through this service. They can get a mini statement of last five transactions of their account. Mobile banking THUMBPAY”..
Banking under your thumb…. Bank Asia Limited is proudly announcing the launching of its (M-Banking Product) “THUMBPAY”. It will allow its customers to access their bank accounts from their Mobile Phone. This latest technology driven product is designed to cater for and facilitate real time banking transactions using a mobile phone and will be currently available to AKTEL subscribers only. “THUMBPAY” will provide Account Balance Query, Prepaid or Postpaid mobile phone bill payment, Fund Transfer, Fund collection (Charity or Relief Fund) services through egistered mobile phone. Customers need to fill up a registration form for “THUMBPAY” service. All branches of Bank Asia are ready to give this service to its valuable clients. Services available under “THUMBPAY” 1. Account Balance Query: Clients can check their account balance at any time and from anywhere in the Bangladesh just after 15 seconds from their query through SMS 2. Pre-paid refill: Eligible clients will be able to share the pleasure to refill their own account and also the account of third party through SMS. 3.
Post paid bill Payment: Post paid AKTEL subscribers can pay their mobile bill as well as others from their account through SMS. 4. Fund Transfer service: Customers will be able to transfer fund from one account of Bank Asia to another. 5. Changing password: Every customer will be given an initial password to avail the “THUMBPAY” service. They can change the password subsequently by SMS. 6. Real Time Round The clock: This service is available round the clock and real-time basis from anywhere ATM service The Bank carries its banking activities through twenty two branches in the country.
Bank Asia customers have access to 20 ATMs as a member of ETN. Under the ATM network the Stelar Online Banking Software enables direct linking of a client’s account, without the requirement of a separate account. The Bank has already set up its own ATM machine at 4 corresponding branches and is also in the process of setting up its own ATM network at every focused point in the city with a view of providing retail banking services. Then Branch list having ATM Booth and location of shared ETN Booth are showed in the appendix in [Table:1] and [Table:2] Customized loan
Modern Banking is a result of evolutions driven by changing economic activities and lifestyles. Entering a new millennium, banking needs have become more diverse and exotic than ever before. Bank Asia Ltd. is a new entrant in the private banking scenario of Bangladesh with a promise to fulfill every possible customer need with high efficiency and satisfaction. Its team of dedicated professionals is committed to provide an unparalleled service by using the latest technology to make bankable proposals harvest maximum benefits for the customers, the shareholders and the society at large.
It is an immense pleasure for Bank Asia to introduce Customized Loan to its customers as a unique Loans plan. Loans & advances are showed in the appendix in [Table:4] [Sources:http://www. bankasia-bd. com][Accessed 15 November 2006] Branches of Bank Asia The Bank at present carrying its banking activities through twenty two branches including ATM, Locker & Foreign Exchange services in the country. It has five rural branches as well. The following is a list of its 22 branches are showed in the appendix in [Table:3] [Sources:http://www. bankasia-bd. com][Accessed 15 November 2006]
Human resource division in Bank Asia In Bank Asia there is no particular Human resource division. Because it human resources are allocated based on the need of the different branches. So it varies in every branch. The following is the organogram of Bank Asia which summarizes all the divisions. This is not a standardized one. Organogram of Bank Asia Management Team (Executive & Officer Level) President & Managing Director Deputy Managing Director Deputy Managing Director & Head of Operations & Company Secretary
Senior Executive Vice President (2) Executive Vice President (3) Senior Vice President (7) Vice president (8) First Vice President (5) Assistant Vice President (7) First Assistant Vice President (1) Senior Executive Officer Executive Officer Senior Officer Officer Junior Officer Assistant Officer Banking Officer Management Trainee, Trainee Officer, Provision Officer & Trailer (Cash) [Entry level] Receptionist Organogram of Human resource department of Bank Asia Under the human resource director there are 5 executive officers who conduct all the human resource development functions in Bank Asia.
Though the overall decision making authority is centralized here, but the executives have the freedom to express their viewpoint in any matter. The HRD is very much helpful and give preference to the recommendations of the employees. [Sources: Interview: Executive Officer of Bank Asia] [On 10th December, 2006] Analysis and Findings After getting all these information, we have analyzed the Human Resource function in Bank Asia. As it is a vast topic to analysis, so we have narrowed down our research on four main focuses. The focus of our analysis was – • Recruitment process Training and Development • Motivation • Performance Appraisal All these aspects of human resource management are widely practiced in Bank Asia. While analyzing we tried to find out the answers of these questions- For Recruitment: • How they get the skilled and the best employees from the all applicants? • Do they give more emphasis on the external or the internal process? • Do they have the same recruitment process for all level of employees? For Training and Development: • What is the objective of the training? • How is their training process? How do they develop their employee after recruitment? • Is the training process same for all the employees? • How do they know if the training process is effective of not? Motivation: • How they motivate employee to put their best effort? • Do they motivate employee to keep going further? For Performance Appraisal: • What processes the company follow evaluating the performance? • Who carries out this process? • Do they have any objective behind this process? Recruitment process in Bank Asia Recruitment is the process by which organizations locate and attract individuals to fill job vacancies.
Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted, to acquire new skills and to permit organizational growth. Recruitment follows HR planning and goes hand in hand with the selection process by which organization evaluates the suitability of candidates for various jobs. [Source: Cynthia D. Fisher, Lyle F. Schoenfeldt, and James B. Shaw, Human Resource management, 5th edition] Recruitment criteria Qualification: Except for the post of trainee officer Bank Asia prefers fresh graduates majoring in finance and economics, or masters in English, economics or have MBM degree.
Academic result: Academic result is so important. They go through the whole academic result from o-levels or SSC to Graduate level. They fixed the CGPA according to the institution. For some reputed university (like NSU, IBA, AIUB, IUB, EWU, BRAC) CGPA has to be minimum 3(out of 4) and for others university (like Asian, Southeast) it is minimum 3. 6(out of 4). They also prefer reputed schools and colleges as there is a huge competition among qualified members. Age: Age is a major factor in recruitment an employee. For the entry level job the age limit is not above 27 and for other position like Branch manager r the sub-manager age limit is around 35. Related experience: They want experience for most of the managerial ranks. The total year of experience are fully depending on the post or ranks. But they do not want any experience for any entry level job. Others: The candidate must process good collective interpersonal and communication skill. Sound knowledge of computer use and good command in English will have special consideration. [Sources: Interview: Executive Officer of Bank Asia] [On 10th December, 2006] Recruitment Process As we said, that the Human resource department in Bank Asia is fully centralized.
So to find out the appropriate person for the Bank the HRM department contact with their all brunch and assign them to forecast the human resource need for the next three year. Every branch then forecast the needs. They often use trend analysis in order to determine the number of employees needed each period. After complete the analysis they sent a report to HRM about how many employees they need in what field. The Bank Asia follows both the Internal and external recruiting. Most of the time they prefer internal recruiting but for the entry level job they go for external recruiting. Recruitment Sources: 1.
Internal recruitment : • Promotion • Transfer The promotion usually held based on the employee personal and current achievement. They give the promotion to the employees who demonstrate themselves as a successful candidate. The promotion fully depends on the employee’s achievement rather than the seniority. Transfer is another way where employee switches the job to other branch or any other department. For this kind of recruitment HRM department often e-mail their employee about the vacancy and receive the application from. Then the head of HR along with some line manager take a formal interview of the employee.
From that interview they pick up the best. 2. External recruitment: • Newspaper advertising • Online advertising They generally go for newspaper advertising and online advertising. They have also the option of keeping the application from in their website. [Sources: Interview: Executive Officer of Bank Asia] [On 10th December, 2006] The Selection Process Employee selection is a process of measurement, decision-making and evaluation. The goal of employee selection is to bring to an organization individual who will perform well on the job and at the same time be fair to all applicants. [Source: Cynthia D.
Fisher, Lyle F. Schoenfeldt, and James B. Shaw, Human Resource management, 5th edition] For the external recruitment & selection they divided the process into three parts. • For the top level executive • For management trainee • Trainee officer. These are describes as follows: The selection of the top level executive or other experience professional is not that complex. They give the advertisement to the newspaper with details about job description and other requirements. After collecting all the CV they call some of them according to their criteria and just arrange a formal interview.
From this interview they select the best applicant. The selection process of management trainee is so extensive and complex. The Bank goes for outsourcing to organize the whole recruitment process. There are several steps of recruitment process. Flow chart of the selection process: Step 1 The first step is to collect the application from. To collect the application from they use several different types of advertising. They generally go for newspaper advertising and online advertising. They have option of keeping the application from in their website. Step 2
In the second step they pick up around 1000-1200 application form from the total pull of applicant according to the job criteria and offer them to sit for the written test. The test is based on essay writing, comprehension test, written math etc. Step 3 The written test is reliable and valid because it has been tested before. There is no base mark for the written test. The exams are proctored by ex- government sectary, ex-VC of any reputed university, ex-deputy governor of Bangladesh bank etc. After the test they decide the level and the top 150 or 200 are called for the interview.
Step 4 After picking up the successful candidate in the written test, they make a panel made of officers working in financial institutions other than bank. And interview them. From this interview, the members of the interview board choose some 50-60 candidates and sent them for the final interview with the company’s internal executive. Step 5 The members of the final interview panel are the head of HR, board of directors and some top level executive of the company. Step 6 After interviewing, they select the best performers in both written test and interview.
After selection, employees have to give a medical test which mainly contains of physical fitness test and drug test. Step 7 Finally the interview board selects 10-12 successful employees and gives them offer letter. The minimum requirement for the Trainee officer is BBA and they are selected only by formal interview conducted by the executives of the bank. [Sources: Interview: Executive Officer of Bank Asia] [On 10th December, 2006] Orientation Bank Asia generally uses formal orientation program. Mainly they have two types of employee orientations: They arrange an overall orientation for one day.
In the orientation all the new recruiters are present and the management gives them an overall job description and job specification. Then a supervisor gives the new recruiter some orientation about the department’s job procedures, and makes him or her familiar with the working environment. After the orientation they are sent to the training program. [Sources: Interview: Executive Officer of Bank Asia] [On 10th December, 2006] [pic][pic][pic] ———————– Special Features: • Real-time Online Banking • Any Branch Banking • Loan Syndication • Corporate Banking • Locker Facilities
Products Include: • SMS Banking • Mobile Banking • Internet Banking • Customized Loan • Bonus Savings Schemes • Poverty Alleviation • ATM Service • Credit Card Human Resource Director (HRD) Executive Officer Executive Officer Executive Officer Executive Officer Executive Officer Receipt of applications & CVs Short-listing applications & CVs (1000-1200 applicants) Written test (Select 150-200 candidates) Interview by the external board (Select 50-60 candidates) Final interview by the internal board (Select 10-12 candidates) Medical test & drug test Select employees and give offer letter