Internship Report of Human Resource Management Practices: A Study on Islami Bank Bangladesh Limited

1. Internship Report
On
Human Resource Management Practices: A Study on
Islami Bank Bangladesh Limited

2. LETTER OF TRANSMITTAL
July 8, 201
The Chairman
Examination Committee
Department of Management Studies
Jahangirnagar University
Subject: Submission of Internship report on ‘Human Resource Management Practices:
A Study on Islami Bank Bangladesh Limited’.
Dear Sir,
With great pleasure I hereby submit my internship report “Human Resource Management
Practices of Design and Source Limited”. The report has been completed by the
information that I gathered from the major courses on Human Resource Management
which I have completed during my BBA as well as from my internship period in Islami
Bank Bangladesh Limited.
As a requirement of preparing an internship report based on the practical knowledge in an
organization, I selected various Human Resource Management practices as my core
concentration that I have come across during my internship program. I have tried my level
best to complete this report meaningfully and correctly, as much as possible. I hope this
report will reflect on the contemporary issues on the Human Resource Management that
are being Practiced by this organization in our country.
Sincerely yours,
Registration No:
Exam Roll:
Session:
Batch:

3. Acknowledgement
At the very beginning I would like to thank our Almighty for guiding me to the right path,
which helped me to complete my work successfully time to time as and when required.
No one can obtain a noble objective alone. There are always some positive efforts from our
surroundings that bring out our success to peak. This internship report is an accumulation
of many people’s endeavor. For this I am indebted to a number of people who helped me
to complete my internship program and prepare the report by their kind advices, guidelines,
suggestions, directions, and cooperation.
First of all, I would like to express my sincere gratitude to Honorable Faculty, Department
of Management Studies, for agreeing to supervise me during the total process takes. I am
indebted to his indeed. He has given his endless effort to guide me in the right direction
during the processing of the report. I thank him for his cordial and valued suggestions.
I would like to thank the authority of Islami Bank Research & Training Academy &
Mouchak Branch of Islami Bank Bangladesh Limited. I am also indebted to Mr. Md. Abu
Sufian (SVP), Mr. Md. Ekram uz Zaman (SAVP), Md. Rahmatullah, Md. Nasir Hossain,
Abdur Rahman, Habibur Rahman, and all staff of IBTRA and mouchak branch, IBBL who
kindly spared much of their precious time in giving me support and information. During
the internship, I was treated so cordially by the Islami Bank Bangladesh Limited officials
and staffs that I feel the office like my second home. Finally, my deepest gratitude and love
to my parents for their support, encouragement, and endless love.
Registration No:
Exam Roll:
Session:
Batch:

4. Executive Summary
The internship report titled on Human Resource Management Practices of Islami Bank
Bangladesh Limited is submitted as partial requirement of the BBA Program of
Jahangirnagar University.
The study has worked in Islami Bank Bangladesh Limited during the internship period.
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding
having largest branch network (total 342 Branches) among the private sector Banks in
Bangladesh. It was established on the 13th March 1983 as the first Islamic Bank in the
South East Asia.
Through working in IBBL, I have got the chance to have a view of human resource
practices which facilitated me to work on this topic. This report is divided into five
chapters. Chapter one is Introduction which is started with an introduction of the report.
The basic purpose of preparing of this report has been enumerated here. Also it has been
explained other elements such as the scope, objectives, methodology, limitations of the
report.
Chapter two is Literature Review of the Study which consists of the basic understanding
of human resource practices of any organization. Beside that Human Resources Definition,
importance, Objectives, functions have been explained here.
Chapter three is Company Profile the general idea about Islami Bank Bangladesh Limited
for instance, background of the organization, mission, vision, company’s activities, SBU’s
of IBBL
Chapter four shows the actual HR practice adopted by IBBL. Beside that tried to show the
functions such as recruitment & selection, training and development, compensation &
reward, performance appraisal and leave policy of Islami Bank Bangladesh Limited.
And in finally chapter five includes the findings, recommendation and conclusion of IBBL.

5. List of Abbreviation
A/c: Account
AAOIFI: Accounting and Auditing Organization for Islamic Financial Institutions
ADC: Alternative Distribution Channel
ATM: Automated Teller Machine
AWCA: Al-Wadeeah Current Account
BACH: Bangladesh Automated Clearing Hours
BACPS: Bangladesh Auto Cheque Processing System
BEFTN: Bangladesh Electronic Fund Transfer Network
BFIU: Bangladesh Financial Intelligence Unit
BIBA: Bangladesh Islamic Bankers Association
BIDS: Bangladesh Institute of Development Society
BRES: Bangladesh Renewable Energy Society
BSES: Bangladesh Solar Energy Society
CCC: Central Compliance Committee
CDD: Customer Due Diligence
CI: Consular Invoice
CPS: Check Processing System
CRR: Cash Reserve Ratio
CSR: Corporate Social Responsibility
CTR: Cash Transaction Report
DD: Demand Draft
EDD: Enhanced Due Diligence

6. EFT: Electronic Fund Transfer
FATCA: Foreign Account Tax Compliance Act
FATF: Financial Action Task Force
FCA: Foreign Currency Account
HPSM: Hire Purchase under Shirkatul Melk
IAIB: International Association of Islamic Banks
IBBL: Islami Bank Bangladesh Limited
IBCA: Inter Brunch Credit Advice
IBDA: Inter Brunch Debit Advice
IBFC: Islamic Banks Consultative Forum
IBTRA: Islami Bank Research & Training Academy
IDB: Islamic Development Bank
IERB: Islamic Economic Research Bureau
IFSB: Islamic Financial Services Board
IIFM: Islamic Inter-bank Fund Market
KYC: Know Your Customer
MFCDA: Mudaraba Foreign Currency Deposit Account
MFSA: Mudaraba Farmers Savings Account
MHSA: Mudaraba Hajj Savings Account
MIESA: Mudaraba Industry Employees Savings Account
ML: Money Laundering
MMPDS: Mudaraba Monthly Profit Deposit Scheme
MMSA: Mudaraba Mohor Saving Account

7. MNSB: Mudaraba NRB Savings Bond
MSA: Mudaraba Savings Account
MSB: Mudaraba Savings Bond
MSNA: Mudaraba Special Notice Account
MSSA: Mudaraba Special Savings Account
MTDRA: Mudaraba Term Deposit Receipt Account
MUDS: Mudaraba Upohar Deposit Scheme
MWCDA: Mudaraba Waqf Cash Deposit Account
NITA: Non-resident Investor Taka Account
OBC: Outward Bills for Collection
OIC: Organization of Islamic Conference
PEP: Politically Exposed Person
PI: Performance Invoice
RTGS: Real Time Gross Settlement
SMSA: Student Mudaraba Savings Account
STR: Suspicious Transaction Report
TF: Terrorist Funding
TP: Transaction Profile
UNFCCC: United Nations Framework Convention on Climate Change

8. Table of Contents
LETTER OF TRANSMITTAL ...........................................................................................ii
Acknowledgement ..............................................................................................................iii
Executive Summary............................................................................................................iv
List of Abbreviation.............................................................................................................v
Table of Contents.............................................................................................................. viii
List of Table........................................................................................................................xi
List of Figure.......................................................................................................................xi
Introduction......................................................................................................................... 1
1.1 Background of the study ................................................................................................2
1.2 Justification of the report ...............................................................................................3
1.3 Objective of the Study ...................................................................................................3
1.3.1 Primary Objectives..................................................................................................3
1.3.2 Specific Objectives: ................................................................................................3
1.4 Methodology of the Report ............................................................................................4
1.5 Scope of the study.........................................................................................................5
1.6 Limitation of the Report.................................................................................................5
Organizational Overview .................................................................................................... 7
2.1 History of Islami Bank Bangladesh Limited ....................................................................8
2.2 Islamic Banking ............................................................................................................9
2.3 Mission.........................................................................................................................9
2.4 Vision...........................................................................................................................9
2.5 Strategic Objectives.....................................................................................................10
2.6 Core Values................................................................................................................11
2.7 Commitments..............................................................................................................11
2.8 Essential Features of Islamic Bank ...............................................................................12
2.9 RIBA and its basic features..........................................................................................12
2.9.1 RIBA and Profit....................................................................................................14
2.9.2 Types of RIBA......................................................................................................14
2.9.3 Prohibition of RIBA..............................................................................................17

9. 2.10 Product & Service .....................................................................................................18
2.10.1 Deposit Products .................................................................................................18
2.10.2 Investment products ............................................................................................19
2.11 Committee Hierarchy.................................................................................................21
2.12 Organizational Structure ............................................................................................22
2.13 Corporate information at a glance...............................................................................23
Literature Review.............................................................................................................. 25
3.1 Human Resource Management.....................................................................................26
3.2 HR Planning ...............................................................................................................30
3.3 Job analysis.................................................................................................................31
3.4 Recruitment & Selection..............................................................................................32
3.5 Training & Development .............................................................................................33
3.6 Performance Appraisal ................................................................................................34
3.7 Compensation & Benefits ............................................................................................36
Human Resource Management Practices of Islami Bank Bangladesh Limited ............... 37
Organogram of the Human Resources Department of (IBBL) ..............................................39
4.1 HR Planning ...............................................................................................................41
4.2 Job Analysis................................................................................................................42
4.3 Recruitment ................................................................................................................44
4.3.1 Authority of Recruitment.......................................................................................44
4.3.2 External Recruitment.............................................................................................46
4.3.3 Internal Recruitment..............................................................................................47
Internal Recruitment Benefits.........................................................................................48
4.4 Selection.....................................................................................................................49
4.4.1 Selection Process..................................................................................................50
4.5 Training & Development .............................................................................................53
4.5.1 Islami Bank Training & Research Academy (IBTRA) .............................................53
4.5.2 Training ...............................................................................................................55
Methods of Training used by Islami Bank Bangladesh Limited (IBBL).............................57
4.5.3 Development ........................................................................................................60
4.6 Performance Appraisal ................................................................................................61
4.7 Compensation & Benefits ............................................................................................67
4.8 Safety & Security ........................................................................................................70
Findings Recommendation & Conclusion ........................................................................ 71

10. 5.1 Findings......................................................................................................................72
5.1.1 SWOT Analysis....................................................................................................73
5.2 Recommendation ........................................................................................................76
5.3 Conclusion..................................................................................................................77
Reference .......................................................................................................................... 78

11. List of Table
Table 1: Difference between Riba & Profit ...................................................................... 14
Table 2: Modes of Investment .......................................................................................... 20
List of Figure
Figure 1: Committee Hierarchy ........................................................................................ 21
Figure 2: Organogram of Islami Bank Bangladesh Limited............................................. 22
Figure 3:Structure of HR Department in a Large Organization ....................................... 39
Figure 4: Core HR Process in HR department of backed by the Human Resources
Manual. ............................................................................................................................. 41
Figure 5: Job Circular of Islami Bank Bangladesh Limited ............................................. 43
Figure 6: Recruitment process of IBBL............................................................................ 45
Figure 7: Selection Process............................................................................................... 50
Figure 8: Rating procedure of Islami Bank Bangladesh Limited (IBBL) ........................ 65
Figure 9: Budget of Welfare Division .............................................................................. 70
Figure 10: SWOT Analysis of HR Department of Islami Bank Bangladesh Limited. ..... 74

12. Chapter One
Introduction

13. An organization is unable to achieve its goal unless it has a right set of employee. Whether
it is a corporate house, bank, telecommunication or small enterprise, most of its success is
subject to the satisfaction of its employees. Human resource management mostly deals with
this factors of an organization by doing employee related activities such as recruitment,
selection, training and development and so on. Banking sector is considered to the highest
contributor to our country’s economy. So it is important to keep its employees satisfied
about their workplace to keep them effective.
1.1 Background of the study
We are living in an era where people are considered as the most significant resource of an
organization. Employees are considered as the most significant factor behind every
successful organization. And for this organizations puts at extensive efforts in choosing
candidates, training and development and so on. Most of the time, skills and knowledge of
an employee is supposed to be the most important thing behind success, but one thing that
is left behind is their satisfaction (Sunil, 2015).
Human Resource Management is associated with employee’s compensation, performance
management, benefits, motivation, organization development, safety, training, wellness,
and others. It plays a very dynamic role in not only managing human resources but also
maintaining the culture and environment within the workplace. It is capable of contributing
to the overall direction of the organization and the accomplishment of its goals and
objectives.
Banking sector is supposed to be the most important among all to run the economical
functions of a country. Among all economic systems, banking supposed to play the most
strategic role in planning and implementing financial policy. Even though it is unable to
create wealth, but its activities simplify the production, distribution and exchange of
wealth. By this way it has created a reputation of being the most effective sector for
economic growth. It is important to keep employees of a bank satisfied for being more
productive and effective so that they can contribute more to our country’s economy
There is no doubt that the world of work is rapidly changing. As part of an organization
then, HRM must be prepared to deal with the effects of the changing world of work. For
them, this means understanding the implications of globalization, technology changes,

14. workforce diversity, changing skill requirements, continuous improvement initiatives,
contingent workforce, decentralized work sites and employee involvement. We should
look how this change is affecting HRM goals and practices.
The current challenge of HRM is to integrate programs involving human resources with
strategic organizational objectives. More and more, organizations are under tremendous
competitive pressure worldwide. HR managers must find ways to develop effective
programs to meet this challenge. Another important aspect of HRM is the need to ensure
cost effectiveness of programs and policies through the optimal utilization of human
resources.
1.2 Justification of the report
Internship is a must for Bachelor of Business Administration degree from Department of
Management Studies, Faculty of Business Studies, Jahangirnagar University for
completing the 131 credits. Every student has to work in a selected organization to enhance
practical knowledge and experiences. I was assigned to Islami Bank Bangladesh Limited
(IBBL), Mouchak Branch and as a requirement of my course I was assigned to prepare a
report on “Human Resources Management Practices: A Study on Islami Bank Bangladesh
Limited”.
1.3 Objective of the Study
This report has two different sort of objectives behind its fulfillment. One is fundamental
objective, which includes the primary reason why the report has been prepared. And the
other one is secondary objective, which includes benefits that are derived from learning
from practical experiences and enhancing the academic knowledge.
1.3.1 Broad Objectives
As a part of the fulfillment of Bachelor of Business Administration degree internship is a
must at the end of the completion of all the credit courses and this is one of the fundamental
objective behind this report. In addition, with, to merge and enhance academic knowledge
with practical experience.
1.3.2 Specific Objectives:
The specific or the main objectives of this report will be:
 To focus on the HR practices, recruitment policies, selection techniques and media.

15.  To focus on the compensation and maintenance of the employees
 To focus on employee evaluation for performance appraisal.
 To focus on the compensation, incentives, benefits & rewards.
 To focus on the short-term and long-term training and development programs
 To get overall idea about HR & gain practical knowledge about HR practice at
corporate world.
1.4 Methodology of the Report
Methodology is the systematic, theoretical analysis of the methods applied to a field of
study. It comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge. Typically, it encompasses concepts such as paradigm,
theoretical model, phases and quantitative or qualitative techniques. In order to make a
comprehensive and informative project report very simple methodology has been used.
The basic method of the report is using some questionnaire for collecting the basic
information the primary data from both the HR executives and some reliable worker.
Again, the secondary data has been collected by the other sources of information. Different
data and information are required to meet the goal of this report. Those data and
information were collected from various sources, such as primary and secondary which is
shown below.
1.4.1 Primary sources of Data:
 Observing various organizational procedures.
 Conversation with the bank officers and staffs.
 Informal conversation with the clients
 Manuals of Bank
 Face to face conversations with the employees at various fields.
1.4.2 Secondary sources of Data:
 Annual report of Bank
 Several types of Academic test books.

16.  Different publication regarding Banking functions.
 Information about the organization from their company profile.
 Web sites of Islami Bank Bangladesh Limited, Bangladesh Bank, etc.
1.5 Scope of the study
The preliminary scope of this report is having a practical experience about the activities of
Islami Bank Bangladesh Limited. It has cover different regions of Human Resource
Management such as planning, recruitment, selection, job analysis, placement, training and
development, and so on. This report also includes variance between the theoretical
knowledge assembled from academic courses and practical knowledge grouped from real
life work experience at Islami Bank Bangladesh Limited. And it can be used for any further
research relevant to this topic. I was assigned to Islami Bank Bangladesh Limited (IBBL)
at Mouchak to complete the program. In this report I have focused on all the qualitative
which include profiles of IBBL, HRM practices in IBBL.
1.6 Limitation of the Report
This report is not free from limitations. The employees of Islami Bank Bangladesh Limited
were very helpful and co-operative but they were extremely busy so there might be some
lacking in collecting information. Moreover, they have to deal in a very competitive
environment based on money related activities. I had to prepare this report alone. Every
task has some limitations. I faced some usual constraints during the course of my
internship. These are as follows:
 Busy working environment: The officers of Islami Bank Bangladesh Limited are
very busy. So, sometimes they cannot provide all types of information timely.
 Insufficient data: Some desired information could not be collected due to
confidentially of business.
 Lack of Information or Data: Adequate and in-depth well- organized information
is not available for access. Though the officials tried to assist, sometimes their
working pressure couldn’t give me proper assistance what I needed. There is some
information which need special permission from top level is not always achievable.

17.  Time Constraint: It is not possible to work in all areas of banking sectors within
two months only.
 Secrecy of Information: Sometimes officers were not interested to provide
sensitive issues or information for ensuring security and safety of the organization.
 Lack of Experience: Though I have prepared many reports before, I had no
experience of internship. So inexperience is one of the main constraints of the study.
 Shortage of Time for Preparing the Report: It is a very short time to prepare
this report because of there are a lots of things those should be included in the report
in details. But in this short time period it could not possible to include those things.

18. Chapter Two
Organizational Overview

19. 2.1 History of Islami Bank Bangladesh Limited
In the late seventies and early eighties, Muslim countries were awoken by the emergence
of Islami Bank which provided interest free banking facilities.
There are currently more than 300 interest free institutions all over the world. Islami Bank
now a day’s not only operate in almost all Muslim countries but have extended their wings
to the western world to serve both Muslim and non-Muslim customers.
In 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself
to reorganise its economic and financial system as per Islamic Shari’ah (legal framework
of Islamic Ideology).
In 1978, Bangladesh recommended in Islamic Foreign Minister Conference in Senegal
towards systematic efforts to Islamic Banking.
In 1980, Foreign Minister Conference in Pakistan where Bangladesh Foreign Minister Prof.
Shamsul Hoque, proposed for taking steps for Islamic Banking. Further, Bangladesh Bank
sent representation abroad to study Islamic Banking System. Also, International Seminar
held in Dhaka inaugurated by Bangladesh Bank Governor for early introduction of Islamic
Banking.
In 1981, President of the People’s Republic of Bangladesh addressed the 3rd Islamic
Summit Conference held at Makkah and Taif suggested, ''The Islamic countries should
develop a separate banking system of their own in order to facilitate their trade and
commerce’’.
Islamic banking Act 1983 of Malaysia described about Islamic banking and that is Islamic
Bank is an organization which bears on Islamic Banking Business means banking business
whole seeks and activities do not involve any thing which is not accepted by the Islamic
religion.
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding
having largest branch network (total 342 Branches) among the private sector Banks in
Bangladesh. It was established on the 13th March 1983 as the first Islamic Bank in the
South East Asia.

20. It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.
Authorized Capital of the Bank is Tk. 20,000 million and Paid-up Capital is Tk. 16,099.91
million having 33,686 shareholders as on 31st December 2018.
2.2 Islamic Banking
Islamic banking is a banking system that is based on the principles of Islamic law (also
known Shariah) and guided by Islamic economics.
Two basic principles behind Islamic banking are the sharing of profit and loss and,
significantly, the prohibition of the collection and payment of interest. Collecting interest
is not permitted under Islamic law.
Islamic banking has been defined in a number of ways. The definition of Islamic bank, as
approved by the General Secretariat of the OIC, is stated in the following manner. "An
Islamic bank is a financial institution whose status, rules and procedures expressly state its
commitment to the principle of Islamic Shari’ah and to the banning of the receipt and
payment of interest on any of its operations".
According to Dr. Ziauddin Ahmed “Islamic Bank is essentially a normative concept and
could be defined as conduct of banking in consonance with the ethos of the value system
of Islam”.
2.3 Mission
To establish Islamic Banking through the introduction of a welfare oriented banking system
and also ensure equity and justice in the field of all economic activities, achieve balanced
growth and equitable development in through diversified investment operations
particularly in the priority sectors and least developed areas of the country. To encourage
socio-economic upliftment and financial services to the loss-income community
particularly in the rural areas.
2.4 Vision
Our vision is to always strive to achieve superior financial performance, be considered a
leading Islamic Bank by reputation and performance.
 Our goal is to establish and maintain the modern banking techniques, to ensure
soundness and development of the financial system based on Islamic principles and

21. to become the strong and efficient organization with highly motivated professional,
working for the benefit of people, based upon accountability, transparency and
integrity in order to ensure stability of financial systems.
 We will try to encourage savings in the form of direct investment.
 We will also try to encourage investment particularly in projects which are more
likely to lead to higher employment.
2.5 Strategic Objectives
 To ensure customers' satisfaction.
 To ensure welfare oriented banking.
 To establish a set of managerial succession and adopting technological changes to
ensure successful development of an Islamic Bank as a stable financial institution.
 To prioritize the client’s welfare.
 To emerge as a healthier & stronger bank at the top of the banking sector and
continue stable positions in ratings, based on the volume of quality assets.
 To ensure diversification by Sector, Size, Economic purpose & geographical
location wise Investment and expansion need based Retail and SME/Women
entrepreneur financing.
 To invest in the thrust and priority sectors of the economy.
 To strive hard to become a employer of choice and nurturing & developing talent
in a performance-driven culture.
 To pay more importance in human resources as well as financial capital.
 To ensure lucrative career path, attractive facilities and excellent working
environment.
 To ensure zero tolerance on negligence in compliance issues both sharia’h and
regulatory issues.
 To train & develop human resources continuously & provide adequate logistics to
satisfy customers’ need.

22.  To be excellent in serving the cause of least developed community and area.
 To motivate team members to take the ownership of every job.
 To ensure development of devoted and satisfied human resources.
 To encourage sound and pro-active future generation.
 To achieve global standard.
 To strengthen corporate culture.
 To ensure Corporate Social Responsibilities (CSR) through all activities.
 To promote using solar energy and green banking culture and echological
balancing.
2.6 Core Values
 Trust in Almighty Allah
 Strict observance of Islamic Shari’ah
 Highest standard of Honesty, Integrity & Morale
 Welfare Banking
 Equity and Justice
 Environmental Consciousness
 Personalized Service
 Adoption of Changed Technology
 Proper Delegation, Transparency & Accountability
2.7 Commitments
 To Shariah
 To the Regulators
 To the Shareholders
 To the Community

23.  To the Customers
 To the Employees
 To other stakeholders
 To Environment
2.8 Essential Features of Islamic Bank
Islami Bank Bangladesh Limited (IBBL) have special feature which distinguish it from
others Bank. They are
 Prohibition of interest: According to Islamic Shari,ah all types of interest is
banned. So, Islamic bank does not carry on business of interest and it completely
avoids the transaction of interest.
 Investment based on profit: After departing from interest, the alternate ways of
income for Islamic bank is investment and profit. Thus IBBL gives up any
transaction of interest and makes investments based on profit. Bank distributes its
profit to its depositors and shareholders.
 Investment in Halal business: Islamic Shari’ah has banned the business of haram
goods. Therefore, Islamic bank does not get any haram business and only do halal
business.
 Halal paths and procedures: Islamic Shari’ah also rejects any haram path or
process in case of a halal business. Therefore, Islamic bank system only allows the
halal path procedures of halal business.
2.9 RIBA and its basic features
The word used by the Quran concerning 'interest' is Riba. The literal meanings of Riba are
money increase, increase of anything or increment of anything from its original amount.
(However, all increases are not considered as Riba in Islam. Money may increase in
business activities as well. This increase is not at all considered as Riba. The increase,
instead of being prohibited (Haram), is approved (Halal) in Islam. Islam prohibits only
those increases that are charged on the loan with a prefixed rate.

24. Muslim scholars equate interest with Riba. In the Shariah, Riba technically refers to the
premium that must be paid by the borrower to the lender along with the principal amount
as a condition for the loan or for an extension in its maturity (Chapra 1985, p.64). In other
words, Riba is the predetermined return on the use of money. In the past there has been
dispute about whether Riba refers to interest or usury, but there is now consensus among
Muslim scholars that the term covers all forms of interest and not only "excessive" interest
(Khan 1985, p.52).
In the era of Ignorance (Jahiliah) moneylenders in Arabia charged a prefixed extra amount
on their money lent out. Some of them lent goods or crops and took back prefixed extra
amount on and above the principal amount. In those days the extra amount charged on the
principal amount of money or goods was also termed as Riba. The term Riba in the Quran
has been used in the same sense.
Imam al Rajhi describes, "During the era of Jahiliah people invested their money and
charged Riba on a monthly basis, though the invested amount remained unchanged. Money
so invested was called back at the time of repayment. In case of the borrower being unable
to pay back, the lender extended the period of repayment enhancing the amount to be paid
on and above the principal amount." Abu Bakr al Jasas writes, "During the period of
Ignorance the lender and borrower came to an agreement that the borrower would pay back
within a specified period the principal amount along with the agreed upon excess." Ibne
Hajar Askalani says, "Excess goods or money charged on and above principal amount is
Riba."
Thus, any prefixed extra amount charged on a specific amount of money or goods lent out
is called Riba.
The most important characteristic of Riba is that it is the positive and definite result of
money when changed. In other words, when money begets money, without being
exchanged for goods or services, it is called Riba. Its basic characteristics are:
 It must be related to loan;
 A prefixed amount of money to be paid when due;

25.  A time is fixed for the repayment; and
 All these elements for repayment are taken as conditions for loan.
2.9.1 RIBA and Profit
There are persons who try to equate Riba with profit. In effect, they are fundamentally
different from each other as can be seen from the following:
Riba Profit
1. When money is "charged", its imposed
positive and define result is Riba
1. When money is used in trading (for e.g.)
its uncertain result is profit.
2. By definition, Riba is the premium paid by
the borrower to the lender along with
principal amount as a condition for the loan.
2. By definition, profit is the difference
between the value of production and the cost
of production.
3. Riba is prefixed, and hence there is no
uncertainty on the part of either the givers or
the takers of loans.
3. Profit is post-determined, and hence its
amount is not known until the activity is
done.
4. Riba cannot be negative, it can at best be
very low or zero.
4. Profit can be positive, zero or even
negative.
5. From Islamic Shariah point of view, it
is Haram.
5. From Islamic Shariah point of view, it
is Halal.
Table 1: Difference between Riba & Profit
2.9.2 Types of RIBA
The term Riba is used in Shariah in two senses. The first is Riba al-nasi'ah and the second
is Riba al-fadl. The term Nasi'ah comes from the root Nasa'a, which means to postpone, to
defer, or wait, and refers to the time that is allowed for the borrower to repay the loan in
return for the 'addition'. Therefore, Riba al-nasi'ah means interest on loans. The same
meaning is reflected in the holy Quran in the verse
"God has forbidden interest" [2:275].

26. This is also the Riba, which the Prophet (pbuh) mentioned when he said: "There is no Riba
except in Nasi'ah".
The prohibition of Riba al-nasi'ah essentially implies that Shariah does not permit the
fixing in advance of a positive return on a loan as a reward for waiting. It makes no
difference whether the return is a fixed or a variable percent of the principal, or an
absolute amount to be paid in advance or on maturity, or a gift or service to be received
as a condition for the loan. The point in question is the predetermined positive return
(Chapra 1985, p.57).
Chapra further pointed out that, according to Shariah, the waiting involved in the
repayment of a loan does not itself justify a positive reward. There is absolutely no
difference of opinion among all schools of Muslim jurisprudence that Riba al-nasi'ah is
Haram or prohibited. Quoting Abd al-Rahman al-Jaziri he opines that the nature of the
prohibition is strict, absolute and unambiguous. He continues to say that there is no room
for arguing that Riba refers to usury and not interest, because the Prophet prohibited the
taking of even a small gift, service or favor as a condition for the loan, in addition to
principal (Ibid).
The second sense in which Riba has been used is Riba al-fadl. Riba al-fadl is encountered
in hand-to-hand purchase and sale of commodities. It covers all spot transactions involving
cash payment on the one hand and immediate delivery of the commodity on the other.
The question of Riba al-fadl arises because of a saying of the Prophet (pbuh) requiring that
if gold, silver, wheat, barley, dates and salt are exchanged against themselves they should
be exchanged spot and be equal and alike. It may be mentioned that the above six items
did the function of money at that time. While explaining the significance of Riba al-fadl
and why it has also been prohibited, Chapra provides the following arguments: On the
surface it appears hard to understand why anyone would want to exchange a given quantity
of gold or silver or any other commodity against its own counterpart, and that too 'spot'.
What is essentially being required is justice and fair play in spot transactions; the price and
the counter-value should be just in all transactions where cash payment (irrespective of
what constitutes money) is made by one party and the commodity or service is delivered
reciprocally by the other. Anything that is received as "extra" by one of the two parties to

27. the transaction is Riba al-fadl, which could be defined in the words of Ibn al-Arabi as all
excess over what is justified by the counter-value. Justice can be rendered only if the two
scales of the balance carry the same value of goods. The point was explained in a befitting
manner by the Prophet, (pbuh) when he referred to six important commodities and
emphasized that if one scale has one of these commodities, the other scale also must have
the same commodity, "like for like and equal for equal". To ensure justice, the Prophet,
(pbuh) even discouraged barter transactions and asked that a commodity for sale be
exchanged against cash and the cash proceeds be used to buy the needed commodity. This
is because it is not possible in a barter transaction, except for an expert, to accurately
determine the fair equivalent of one commodity in terms of all other goods. Hence, the
equivalents may be established only approximately thus leading to some injustice to one
party or the other. The use of money therefore helps reduce the possibility of an unfair
exchange (Ibid, pp.58-59).
It is in the above sense that all commodities exchanged in the market would be subject to
Riba al-fadl. Its prohibition is thus intended to ensure justice and eliminate all forms of
exploitation through 'unfair' exchanges and to close all back doors to Riba since, in the
Islamic Shariah, anything that serves as a means to the unlawful is also unlawful. The
Prophet (pbuh) also equated with Riba the cheating of an unsophisticated entrant into the
market and the rigging of prices in an auction with the help of agents. Thus, it implies that
the extra money earned through such exploitation and deception is nothing else but Riba
al-fadl. People may be exploited and cheated in a number of ways and that is why the
Prophet (pbuh) said: "Leave what creates doubt in your mind in favor of what does not
create doubt". Inspired by this Hadith, Caliph Umar said: "Abstain not only from Riba but
also from Ribah" the latter literally meaning 'doubt' which refers to income that has the
semblance of Riba or which raises doubt in the mind about its rightfulness. It covers all
income derived from injustice to, or exploitation of, others (Ibid, p.61).
Referring to Fakhruddin al-Razi, Chapra concludes that Riba al-nasiah and Riba al-fadl are
both essential components of the verse "God has allowed trade and prohibited Riba." While
Riba al-nasiah relates to loans and is prohibited in the second part of the verse, Riba al-fadl
relates to trade and is implied in the first part. Because trade is allowed in principle, it does

28. not mean that everything is allowed in trade. Since injustice inflicted through Riba may be
perpetuated through business transactions, Riba al-fadl refers to all such injustices or
exploitation. It requires absence of rigging, uncertainty or speculation, and monopoly and
monopsony (Ibid, p.61).
It is the considered opinion of the experts on Islamic jurisprudence that interest charged by
commercial banks "is identical with the excess stipulated as an obligatory condition in the
contract, which is one of the two types of usury prohibited by Islamic Shariah".
Justification put forward for prohibiting this kind of usury is that it admits the possibility
of fraud in transactions (Ausaf Ahmed 1995, p.16). The Shariah stands for establishing the
condition that there will be no element of uncertainty (Gharar) nor of injustice (Zulm) when
people enter into contracts with each other, whether these contracts pertain to real
transactions of commodities or to financial transactions. Islamic Fiqh Academy established
by the Organization of Islamic Conferences (OIC) in its second session held in Jeddah,
Saudi Arabia, during 22-28 December 1985, declared that "any increase or profit on a loan
which has matured, in return for an extension of the maturity date, in case the borrower is
unable to pay, and any increase or profit on the loan at the inception of the loan agreement,
are both forms of usury (Riba), which is prohibited under the Shariah" (Ibid, p.17).
2.9.3 Prohibition of RIBA
On religious perspective
The religious restriction on interest is quite explicit and unequivocal. All transactions based
on Riba are strictly prohibited in the Quran. The prohibition of Riba appears in the Quran
in four different revelations. The first of these [30:39] in Makkah, emphasized deprivation
of God's blessing for a man making interest transaction and charity having the essence of
manifold rise. The second revelation [4:161] concerning the subject took place in the early
Madinah. It severely condemned interest-referring prohibitions taken place in the previous
scriptures. The third revelation [3:130-2] enjoined Muslims to keep away from Riba. The
fourth revelation [2:275-81] reveling nears the completion of the Prophet's mission. The
verses giving strong verdict against Riba are as follows:
Those who devour Riba will not stand except as stands one whom the devil hath
driven to madness by [his] touch [2:275].

29. Condemnation of the system of interest is so strong and without any doubt can be
reflected in the following verse which imposes penalties on those who hesitate in observing
the verdict:
O ye who believe! Observe your duty to Allah and give up what remains (due to
you) from Riba, if you are (in truth) believers. And if you do not, then be warned of
war (against you) from Allah and His Messenger. And if you repent then you have
your principal (without Riba). Wrong not, and you shall not be wronged [2:278-9].
The strong disapproval of interest by Islam and the crucial role it plays in the
modern commercial banking has led Muslim thinkers to explore ways and means by which
commercial banking could be organized on an interest-free basis. However, for a long time,
the idea of Islamic banking remained a mere wish. Some papers were written and some
professional economists even worked out theoretical models of Islamic banking. However,
they were quickly dismissed by highbrow economists who described them as wishful
thinking and attempts to put history into reverse gear.
2.10 Product & Service
IBBL has the scope to explore the market niche through various types of IBBL instruments.
IBBL offers wide range of IBBL products and services
2.10.1 Deposit Products
Islami Bank Bangladesh Limited mobilizes deposits through different types of
accounts.
 Al-Wadeah Accounts
 Mudaraba Accounts
Al-Wadeah Accounts
Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of
Al-wadeah. The Bank commits to refund money deposited in these Accounts on the
demand of customers. On the other hand the Bank takes permission from customers that
the Bank may utilize their money. Customers may operate these Accounts as their desires.
No profit is disbursed in these Accounts and depositors do not bear any loss

30. Mudaraba Accounts
In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-
Mal'. On behalf of depositors, the Bank invests their deposited money and distributes
minimum 65% of investment-income earned through deployment of Mudaraba funds
among Mudaraba depositors after the closing of the year.
 Al-Wadeah Current Account (AWCA)
 Mudaraba Savings Account (MSA)
 Mudaraba Term Deposit Account (MTDR)
 Mudaraba Special Notice Account (MSNA)
 Mudaraba Hajj Savings Account (MHSA)
 Mudaraba Special Savings (Pension) Account (MSSA)
 Mudaraba Savings Bond (MSB)
 Mudaraba Monthly Profit Deposit Account (MMPDA)
 Mudaraba Muhor Savings Account (MMSA)
 Mudaraba Waqf Cash Deposit Account (MWCDA)
 Mudaraba NRB Savings Bond (MNSB) Account
 Mudaraba Foreign Currency Deposit Account (MFCD)
 Students Mudaraba Savings Account (SMSA)
 Mudaraba Farmers Savings Account (MFSA)
2.10.2 Investment products
The special feature of the Investment Policy of the Bank is to invest on the basis of profit-
loss sharing system in accordance with the tenets and principles of Islamic Shari'ah.
Earning of profit is not the only motive and objective of the Bank's Investment Policy rather
emphasis is given in attaining social goal and objective in creating employment
opportunities [15].

31. Following modes are used for investment in IBBL
Bai-Modes Share-Modes Ijara-Modes
 Bai-Murabaha
 Bai-Istijrar
 Bai-Muajjal
 Bai Salam
 Istisna’a
 Bai-As-Sarf
 Mudaraba
 Musharaka
 Hire Purchase Under Shirkatul
Melk
 Under consumer financing, the
Bank finances to the
individuals for meeting their
personal. Family and
household needs.
Table 2: Modes of Investment
Investment Scheme
 House Hold Investment Scheme
 Investment Scheme for Doctors (ISD)
 Transport Investment Scheme (TIS)
 Car Investment Scheme (CIS)
 Small Business Investment Scheme (SBIS)
 Micro Industries Investment Scheme (MIIS)
 Agricultural Implement Investment Scheme (AIIS)
 Real Estate Investment Program (REIP)
 Real Estate Investment (Commercial & Working Capital)
 Agricultural Investment of IBBL
 NRB (Non Resident Bangladeshi) Entrepreneurs Investment Scheme(NEIS)
 Women Entrepreneurs Investment Scheme (WEIS)

32. 2.11 Committee Hierarchy
Figure 1: Committee Hierarchy

33. 2.12 Organizational Structure
Figure 2: Organogram of Islami Bank Bangladesh Limited
Assistant Officer Grade III
Assistant Officer Grade II
Assistant Officer Grade I
Probationary Officer
Officer
Senior Officer
Principal Officer
Senior Principal Officer
First Assistant Vice President
Assistant Vice President
Senior Assistant Vice President
Vice President
Senior Vice President
Executive Vice President
Senior Executive Vice President
Deputy Managing Director
Additional Managing Director
Managing Director/CEO

34. 2.13 Corporate information at a glance
Name of the Company : Islami Bank Bangladesh Limited
Legal Status : Public Limited Company
Bangladesh Bank License No : BL/DA/4290/83
eTIN : 376764873732
Vat Registration No/BIN No. : 000000124
Line of Business : Banking
Incorporation : 13th March, 1983
Opening of First Branch : 30th March 1983
Authorized Capital : Tk. 20,000.00 million
Paid up Capital : Tk 16,099.91 million
Equity : Tk 52304 million
Deposit : Tk 805336 million
Investment : Tk 783584 million
Foreign Exchange Branch : Tk 707247 million
Directors : 20
Sponsors : 19
Placement Holders : 17
Shareholders : 40819
MPB Holders : 16102
Local Shareholders : 56.24%
Foreign Shareholders : 43.76%
Zones : 16

35. Branches : 342
AD Branch : 60
SME/ Agriculture Branch : 30
Offshore Banking Unit : 3
ATM Booths (Own) : 629
ATM Booths (Shared) : 9000
Instant Deposit Machine : 126
Service Centre (Sheba Ghor) : 45
Agent Banking : 305
Manpower : 14698
Chairman : Professor Md. Nazmul Hassan, Ph.D
Managing Director : Md, Mahbub-Ul- Alam
Tax Advisor : M/s K.M. Hasan & Co., Chartered
Accountant
Registered Office : 40, Dilkisha C/A Dhaka -1000 Bangladesh
Phone : PABX (+88-02) 9563040, 9567161
Mobile : +8801711435638-9
FAX : (+88-02) 9564532
SWIFT : IBBLBDDH
Email : info@islamibankbd.com
Website : www.islamibankbd.com

36. Chapter Three
Literature Review

37. This chapter includes summary of all document used to formulate the report on “Human
Resources Management Practices: A Study on Islami Bank Bangladesh Limited”. The
assessment is descriptive and has considered sequences of books, article, journals, and
internship reports and so on. Summary of both national and international organizations that
facilitated the origination of the report has been included in the following chapter.
3.1 Human Resource Management
According to Kammeyer‐ Mueller (2015) Human resource management is a field of
research and practice that addresses the evaluation, placement, development,
compensation, and retention of employees. The goals of any human resource program are
defined at the organizational level as a component of the strategic planning process. The
process then moves to staffing, which includes recruiting, hiring, and placing individuals
in appropriate organizational roles. The training and development function involves
providing initial skills development to newcomers, along with evaluating performance over
time and providing appropriate ongoing developmental experiences. These processes all
work in tandem with compensation practices, incorporating base pay, incentives, and
nonmonetary benefits. Because human resources decisions influence many important
outcomes for workers, there is also an extensive legal framework regulating employment.
HRM has seven key functionalities. The seven management functions are staffing,
performance appraisals, compensation and benefits, training and development, employee
and labor relations, safety and health, and human resource research. (Encyclopedia of
Business and Finance)
There are several roles that can be played by HRM. First, HRM should help the
organization articulate the purpose of the knowledge management system. For example,
organizations embrace technologies to solve problems before they’ve even identified the
problem they are trying to solve. Then, once they realize the error, they find it difficult to
discard the original solution and difficult to gather the resources needed to invest in a
solution to the real problem. Second, HRM must ensure alignment among an organization’s
mission, statement of moral principles and policies. Furthermore, HRM must nourish a
culture that embraces getting the right information to the right people at the right time.
Third, HRM should create the “ultimate employee experience” by transforming tacit

38. knowledge into explicit knowledge, build employee skills, competencies and creating
bench strength. Fourth, HRM can assimilate effective knowledge sharing and usage into
everyday life. It has the capabilities for creating, measuring and reinforcing a knowledge-
sharing expectation. Fifth, HRM must controls and allow behaviors that in the clockwork
world of industrial efficiency, never would have been tolerated. Organizations should
selectively recognize and reward, rather than universally discourage and penalize these bad
types of behaviors. Sixth, HRM must take a strategic approach to helping firms manage
everything regarding the uses of technology. So that the technology will be fully utilize for
the right purposes by the employees. Certainly, some control is needed but the larger
question for HRM is determining appropriate boundaries. Lastly, HRM must champion the
low-tech solutions to knowledge management. Although it should not ignore the high-tech
knowledge management tools, HRM contains the expertise to develop low-tech knowledge
management strategies. (Becker and Huselid, 2006).
Moreover, through all facets of HRM functions, how can the motivation, commitment and
other organizational relevant favorable attributes of employees are ensured in the interests
of optimal organizational performance? Such driving forces are important in helping
transform ‘personnel management’ into HRM, and more recently, HRM into ‘strategic
human resource management’ (SHRM), providing recognition that the effective
management of human resources is a strategic function (Brewster, 1994), not a service or
support activity in organizations (Stening, 2006).
Nowadays, the HRM profession is developed enough for competent, experienced HR
professionals to be out there, offering their services externally (Eleanna and Nancy, 2007)
but the obstacles to effective HRM needs to be overcome to better identify the future
approach to and effect of HR practice on the management of organizations. The overall
success of HR practitioners and the profession will therefore only be enhanced, if there is
a willingness to manage the HR function in a visionary manner and if there is earned
recognition forthcoming in future of their contribution by organizations’ top level
leadership cadre (IFSAM, 2006). To overcome the problems in human resource
management, a good human resource planning system need to be developed.

39. For optimum performance project assignments should be linked with career development
so that employees may feel that specific project assignments are likely to create
opportunities for development. HRM practices in contemporary organizations most of the
times overlook needs of stake holders in favor of the organization. Fairness and justice
assume added significance towards HRM practices (Turner, Huemann and Keegan, 2008).
Bon and Ostroff’s (2004) concluded that “the strength of the HRM system affect
organizational effectiveness.” HRM is said to have a central role in business performance
as per the theory (Richard and Brown Johnson, 2001). Thus HRM strategies are deep
rooted in business needs with a firm integration with business strategy.
HRM practices influence employee skills through the acquisition and development of a
firm’s human capital. Recruiting procedures that provide a large pool of qualified
applicants, paired with a reliable and valid se-lection regimen, will have a substantial
influence over the quality and type of skills new employees possess. Providing formal and
informal training experiences, such as basic skills training, on-the-job experience,
coaching, mentoring, and management development, can further influence employees’
development (Huselid 1995).
Employees and workers are the most important assets of an organization, the participation
and involvement of employees encourage them to take participation in decision making
to improve organizational capacity (Brown & Leigh, 1996). The previous researchers
found that after involving of employees there are many positive impacts of this
practice like Perceived Organizational Performance, job commitment, job satisfaction,
employees retention (Abdalkrim, 2012).
In this era of globalization where there can be mixed culture in a company the work
environment is quite important. The employee relationships can affect the company’s
performance. As most employees spend a significant part of their day working, the
environment of their workplace is also a very important factor affecting their job
satisfaction (Sell & Cleal, 2011). Job environment includes physical aspects of the
workplace like working conditions, availability of resources as well as co-worker’s
behavior, politics etc.

40. An August 2014 Forbes article explored the shifting goal of today’s human resource
management teams. More specifically, the article found that HR teams focused on things
that don’t add true value to the organization are often deemed reactive, uncreative, and
lacking basic business understanding. On the other hand, HR professionals who want to be
recognized as true business partners must see themselves as business people who specialize
in HR, not as HR people who advise a business.
Modern HRM practices afford an opportunity to gain increasing control over line
managers, other employees and their behavior. Critical approaches to management imply
the need for skepticism about the purposes of the global transferability of HR ideas and
practices. Moreover, rather than focusing on whether practices can be transferred, the
barriers to transfer, or how they are transferred, a key theme in a critical approach is how
work is designed and people are managed to achieve the control necessary within
organizational, economic and societal contexts (McKenna and others, 2010).
Storey (1995) defines HRM as a distinctive approach to employment management which
seeks to achieve competitive advantage through the strategic deployment of a highly
committed and capable workforce, using an integrated array of cultural, structural and
personnel techniques; while Byars & Rue (2004) see HRM as activities designed to provide
for and coordinate the human resources of an organization. In addition, Boxall & Purcell
(2000) argue that “HRM includes anything and everything associated with the management
of employment relationships in the firm.” The words anything and everything in the
definition explains the wider range of issues comprising policies such employment contract
and ways in which employees may be involved and participate in areas not directly covered
by the employment contract thus ensuring suitable work life. Further, it goes beyond
employment relations or industrial relations, which personnel management would not have
been able to render in organizations.
The four key dimensions to HRM as postulated by Guest (1987) include; 1. Commitment:
It is expected of employees to identify the interests and goals of the organizations, and be
aligned and committed in achieving these goals. 2. Flexibility: Employees are expected to
adapt willingly to change within the organizational structure, without any strife or
prejudice. 3. Quality: High levels performance attainment of organization depends on the

41. quality of members of staff and management of such organization. 4. Integration: ‘It
involves the matching of human resources strategies to the needs of the business strategy
(Guest, 1987).
It is important to emphasize that human capital is not basically individuals in organizations;
rather it is what they have to contribute in achieving organizational goals. Robert &
Elizabeth (2003) define Human Capital as “the collective value of the capabilities,
knowledge, skills, life experiences, and motivation of an organizational workforce.” It is
also referred to as “intellectual capital to reflect the thinking, knowledge, creativity, and
decision making that people in organizations contribute” (Mathis & Jackson, 2006).
3.2 HR Planning
Long-term Human Resource (HR) planning is a strategic and very important part in a
process of preparation and realization of such a complex organizational system also for the
sake of cost reduction. Many organizations describe HR as the combination of traditionally
administrative personnel functions with performance management, employee relations and
resource planning. HR has at least two meanings depending on context. The more common
practice within corporations and businesses refers to the individuals within the firm and
some organization that deals with hiring, firing, training and other personnel issues. The
main objective of HR is to maximize the return of investment from organization’s human
capital and minimize financial risk. HR manager is the responsible person to conduct these
activities in an effective, legal, fair and consistent manner. (lbourne and Cieri, 2001).
Business strategies, managerial style and organizational culture moderate HRM policies.
Moreover, it was found that HRM policies do not have a direct impact on organizational
performance, but their impact is fully mediated by employee skills, attitudes, and behavior
(Katou and Budhwar, 2010). There is a need to standardize the process of study particularly
in the field of HR. Researchers need to develop a process in which development of
questionnaire, administration of questionnaire and structuring of comparable measures
should follow the same way. Results of such a study cannot be generalized without a
process which is close to uniformity (Steinmetz, 2011).

42. 3.3 Job analysis
Dissecting a job in order to give a general description of its component elements can be
termed as job analysis (Holst and Pancoast, 1921). It is a detailed and systematic study and
presentation of information such as skills, knowledge, abilities, and responsibilities relating
to the operation of a specific job. It is this information that differentiates one job from
another and determines the success of a worker in performing his or her duties (PPMS,
2018).
A comprehensive job analysis will show 1). The job-oriented activities, which is the
description of the exact activities to be performed such as teaching, coaching, facilitating,
mentoring, and so on. Such descriptions can also indicate how, why, and when a worker
performs an activity. 2). who a worker is to report to as well as the relationship of a worker
with others which include superiors, colleagues, and subordinates. 3). Behaviours
performed during the work such as reading to students, writing on the board, explaining to
students, checking students' notebooks, decision-making, etc. 4.) Equipment, materials,
etc. to be used in performing the work such as interactive board, laptop, projector, maker,
etc.5). Job context like the physical working conditions, work schedule, organizational
context, social context, incentives (financial and non-financial). 6). Personal data related
to the job such as technical skills, special training, work experience, etc. 7). Personal
attributes like aptitudes, physical characteristics, personality, interests, passion, values, etc.
(McCormick, 1970).
Before moving on to consider the branches of job analysis – job description and job
specification, as presented by Okunade (2015) above, it is necessary to look into the
usefulness and reasons for carrying out job analysis. Below are some uses of and reasons
for job analysis. 1. Determination of labor needs: Job analysis allows an organization to
evaluate its labor needs and make adequate preparation for it. 2. Recruitment and Selection:
The information made available through job analysis forms the basis upon which an
organization recruits, selects, orientates, places, trains, transfers, and promotes employees.
3. Wage and Salary Administration: Employee information such as previous experience,
educational qualifications and the risks and hazards involved in performing specific jobs,
helps in salary and wage administration.

43. For the job duties/responsibilities described under job description to be properly performed
with regard to the prevailing job relationships and working conditions/environment,
persons with certain skills, experience, attitude, physical attributes, etc. are needed. The act
of stating in precise terms what constitute these skills, experience, attitude, physical
attributes, etc. is referred to as job specification Therefore, job specification is simply the
expression of job description in terms of personnel qualities. It is a list of human
requirements needed to perform the job well (Okunade, 2015). In other words, it is the
minimum acceptable personnel characteristics or qualities necessary for the efficient and
effective performance of a job.
Job design is the process of deciding on the contents of a job in terms of its duties and
responsibilities; techniques, systems, procedures, and methods to be used in carrying out
the job; and the relationships that should exist between the jobholder and his superiors,
subordinates and colleagues (PPMS, 2018). Davis (1966, as cited in Okunade, 2015)
maintained that job design is the specification of the contents, methods, and relationships
of jobs to satisfy technological and organizational requirement as well as the social and
personal requirement of the jobholder. In other words, it is a deliberate and systematic
attempt to structure the technical and social aspects of work so as to improve technical
efficiency and job satisfaction.
3.4 Recruitment & Selection
Recruitment and selection is the best practice of human resource management which help
to identify the best and right person for the right job, many organizations are facing this
challenging situation and retain their high level of performing employees. Recruitment and
selection systems are the best tools of hiring decision, it also refer the importance of
workers to their management (Yang & Lin. 2009). Recruitment is a process in individuals
is invited in appropriate numbers with required qualification and encourages them against
available posts Mondy and Noe (1986). There are two main sources of recruitment, one is
internal and other is external source. The organizational employees those are applicant
against the available vacancies is called internal sources. Transfer, promotion, demotion
and resignation are also under the human resource management (Usman & Dugguh, 2014).

44. According to Edwin B Flippo (1980) Recruitment as “the process of searching for
prospective employees and stimulating them to apply for the jobs in the organization.”
According to Yoder Recruitment is a process to discover the sources of manpower to meet
the requirement of the staffing schedule and to employee effective measures to attracting
that manpower in adequate number to facilitate effective selection of an effective
workforce.
3.5 Training & Development
For gaining competitive advantages in 21st century the employees and workers of
organizations needed to updated skills, knowledge and required capacity building for the
development of human capital and Perceived Organizational Performance (Chen &
Klimoski 2007). Many researchers show that training is a better investment which gives
maximum outcome and beneficiary for firms (Bartlett, 2001). Training& development
build the capacity of works and improve their future and current abilities, knowledge and
skills (Quartey, 2012).
According to Clinton O. Longenecker,‘‘Training leads to better performance; ineffective
training creates problems; training must be a managerial priority; managers must create a
system for training that is tied to actions that ensure effective outcomes and educating
workers to see the big picture is paramount’’. He mentioned that in all the organizations,
the people in charge of the employees is very keen to make training available to their people
and make it an absolute necessity (Income Data Services. & Institute of Personnel, 1993).
By doing so, the company can achieve great results and thus gain competitive advantage
over the rival firms.
It’s important for certain leadership attributes to be exercised during workplace training as
they can create the right level of motivation and direction that will facilitate the success of
a firm. The research father unveils a combination of winning attributes which leader can
employ to set standard for competitive advantage and human resource management in their
organization and training sessions. Such traits include confidence, integrity, organization
and respect for team members and they play a critical role in determining the success and
drive of an organization team. Nonetheless, the research team placed a lot of emphasis on
the ideals of a proper communication being infused in the situation leadership style as they

45. mark the contexts of association and reliability of all leaders in conducting successful
training (Al-Awlaqi et al., 2018).
After the completion of the training, there is need to evaluate whether the set goals (both
short-term and long-term) have been achieved or not, which suggests to the organization
to continue in the trend or make amendments. In other words, evaluating the training
program tends to measure the effectiveness and the efficiency regarding the expected
change that must have occurred during the training on the part of the expatriates. Evaluating
the short-term goals of the training programme measures the amount of skills such as
language skill and intercultural skills acquired by the expatriates, which could be done by
observing the trainee’ interactions with host country nationals. However, evaluating the
long-term goals tends to measure the extent to which expatriates have been able to adjust,
which reflects on their job performances and achievement in the host country. Further,
experts and scholars have argued that evaluating expatriates’ adjustment can be carried out
through the use of questionnaires, phone interviews, and electronic surveys (Harzing &
Ruysseveldt (2004).
According to an article by Barnerjee D (2006), employee development, in sharp contrast to
training, is more future oriented and more concerned with education than employee
training. Development focuses on planting a sound reasoning process in employees. It
enhances their ability to understand and interpret knowledge rather than imparting a body
of facts or teaching a set of skills. A development path for an employee, imparts in him
analytical, human, conceptual and specialized skills. It makes him able to think and analyze
in different situations. Development, therefore, focuses more on the employee’s personal
growth. It is important to consider one critical component of employee development: All
employees, at no matter what level, can be developed.
3.6 Performance Appraisal
Organizational Performance could be improved through implementation of human
resource management practices. Their researchers Rondeau & Wagar, (2001) observed the
relationship between environments of workplace, ability of Perceived Organizational
Performance in a medical related organization in Canada. They found in their study that
the organization in which human resource management practices implemented effectively,

46. the concerning organization had a better and ideal abilities and capacities to deliver its
services as compared to other organizations in that specific area.
Promotion, termination, test validation, and performance improvement are the common
types and applications of performance appraisal. For everyone to improve the performance
appraisal must be highly priorities for current organization and performance improvement
(Saeed et al. 2013). A periodic and systematic process which evaluate and assess the
employees productivity and individual’s performance in accordance with organizational
objectives and pre-settled standards (Manasa & Reddy,2009).
It is not possible to achieve high levels of performance without communicating the roles
with clarity. If belief of staff runs contrary to actual expectations of senior managers than
desired performance level cannot be met (Martins, 2007). High-involvement HRM
practices have positive relationship with subjective and quantitative measure of
organizational performance. This means that organizations that implement highly selective
staffing, realistic training, performance management practices and employee
empowerment are likely to have higher performance (Moideenkutty, Al-Lamki and
Murthy, 2009).
Performance management provides an avenue in setting targets for employees, provide
constant and up-to-date feedback on progress towards achieving organizational set goals,
and connects results with compensation. Therefore, there is need to discuss performance
management regarding expatriates. Harzing & Ruysseveldt (2004) argued that managing
the performance of international staff in multinational companies is more complex than
managing domestic staff, because it cuts across cultural boundaries. The first technique of
performance management that is goal setting requires the inputs of both employees and the
employers. However, it is essential noting that distance exists between multinational
companies and their subsidiaries, which stands as a barrier in achieving organizational
goals, because it can lead to ineffective observation and supervision (Harvey, 1989). HR
experts need to bridge the gap of distance that exists between achieving set goals and
assignees in order to make performance management timely, relevant, and effective.
According to Murad A (2000), “Performance appraisal is the process of determining and
communicating to an employee how he or she is performing on the job and, ideally,

47. establishing a plan of improvement”. When properly conducted, performance appraisals
not only let employees know how well they are performing but also influence their future
level of effort and task direction. Effort should be enhanced if the employee is properly
reinforced. The task perception of the employee should be clarified through the
establishment of a proper plan for improvement.
3.7 Compensation & Benefits
Reward and compensation is beneficiary and has much importance for the employees
of an organization, it improve the working capacity and main source to Motivate
the employees and workers of an organization, reward and compensation motivate the
worker in several ways to achieve the organizational objectives and goals. It is provided
evidence that based on compensation and develops the organization (Allen &
Helms,2002). . Reward and compensation support to the all kinds of pay or reward
which increase their employment opportunities (Khan, 2010).
Rewarding expatriates is also known as international compensation in which HRM activity
is highly involved (Reynolds, 1997). It has been identified that international compensation
is complex and associated with a degree of risk arising from the complexities for operating
in multiple economic and culture; also from inappropriate expenditure on international
assignees (Cahill, 2002). Therefore, HR experts need to pay more attention to this
phenomenon before it goes out of control and subsequently leads to dissatisfaction on the
part of workers (Dwyer, 1999). In addition, Briscoe et al (2009) argued that if multinational
companies are able to achieve their objectives regarding global compensation and benefits;
amongst which include: (i) Attraction and retention of the best qualified talent to staff the
Multinational companies; (ii) Attraction and retention of employees who are qualified for
international assignments; (iii) Establishment and maintenance of a consistent and
reasonable relationship between the compensation of employees both at corporate
headquarters and subsidiary; and (iv) Maintenance of compensation that is reasonable in
relation to the practices of competitors (Briscoe, et al (2009).

48. Chapter Four
Human Resource Management Practices of Islami Bank Bangladesh
Limited

49. Employees are the core resources of any organization, without them, one cannot run their
organization, and human resources is conducted with the growth of development of people
toward higher level of competency, creativity and fulfillment.
It helps employee’s become better more responsible person and then it tries to create a
climate in which they contribute to the limits of their improved abilities. It assumes that
expanded capabilities and opportunities for people with lead directly to improvements in
operating effectiveness.
Essentially, the human resource approach means that people better result. Bank always
determine what jobs need to be done, and how many and types of workers will be required.
Human Resource Department is responsible for the main dimension of people of the
organization.
It is responsible for:
 Hiring competent people
 Training them,
 Helping them perform at high levels and mechanisms
 Ensure that these employees maintain their productive affiliation with the
organization.
Human Resources Department of IBBL is also solely responsible for:
 Recruitment,
 Training and Development,
 Ensuring Compensation and Benefits of staffs,
 Performance Appraisals and Rewards.
With all those core functions Human Resources Department linkage its operations meet
the organization’s objectives.

50. Organogram of the Human Resources Department of (IBBL)
Figure 3: Structure of HR Department in a Large Organization
Objectives of the Human Resources Department of Islami Bank Bangladesh Limited
The objective of HRD of IBBL can be described as follows
 To hire the right person for the job
 To reduce employee turnover
 To motive people to perform at high effort levels.
 Not to waste time with useless interviews.
 To remove unfair labor practices.
 To maintain a high morale & better human relation inside the origination.
 To maintain organizational peace.
 To attract competent people and retain them in the organization.
 To recognize and satisfy individual needs.
VP HR
AVP/Director
Recruitment
and Selection
AVP/Director
Compensation
& Benefits
AVP/Director
Training &
Development
AVP/Director
of employee
AVP/director
labor relation

51. Basic Principles of HRM
 Treat people with respect and dignity;
 Deal with people as complete individuals.
 Treat all employees with justice.
 Provide people with justice.
 Make people feel that they are most valuable asset for the organization.
 Rewards should be earned, not given.
 Not to underestimate the potentials of people.
 Provide people with all relevant information.
Functions of the Human Resource Department
 To control the administration of human resources of the bank
 To access and collect compatible personnel who will be perfect for the bank
 To take program and implement for developing human resources.
 To make appointment, promotion and appraising skill of officer and stuff
 To maintain relationship with government and other institution
 To access and grant retirement facilities at the time of retirement
 To communicate with e union scrutinizing their demands
 To give loan for house building, car, motorcycle and ensure their proper Utilization
 To give medical facilities to the staff.
 To maintain and grant leaves without regular leave
 To coordinate and evaluate the branch office

52.  To prepare and implementation policy about human resources and related activities.
 To perform the activities assigned by the department head
Core Functions of Human Resources Department in Islami Bank Bangladesh Limited
Figure 4: Core HR Process in HR department of backed by the Human Resources
Manual.
4.1 HR Planning
A very common term in business is strategic planning. The strategic plan serves as a guide
for businesses to achieve their mission. The standard strategic plan presents an
organization's strengths and weaknesses, the environment in which the organization
operates, and the goals the organization desires to achieve within a specific time frame. In
order to achieve the desired goals that are presented in a strategic plan, it is important that
the organization take a strategic approach to human resource management.
Human resource planning is the ongoing process of systematic planning to achieve
optimum use of an organization's human resources. To develop a strategic HR plan, human
resource professionals must forecast labor demand, analyze present labor supply, and
balance projected labor demand and supply. This is the standard model of strategic human
resource planning. Strategic human resource planning goes hand-in-hand with an
organization's overall strategic plan. As a human resource director, it is imperative that you
have the strategic vision, when it comes to human resource needs, necessary for your
organization to achieve its goals that were set forth in its strategic plan.
Core HR process
Recruitment
and Selection
Training &
Development
Compensation
& benefits

53. 4.1.1HR Planning Process
 Assessing the current HR capacity
 Forecasting HR requirements
 Gap analysis
 Developing HR strategies to support organizational strategies
4.2 Job Analysis
Job analysis is the process of gathering and analyzing information about the content and
the human requirements of jobs, as well as, the context in which jobs are performed. This
process is used to determine placement of jobs. Under NU Values the decision-making in
this area is shared by units and Human Resources. Specific internal approval processes will
be determined by the unit's organizational leadership. Job analysis defines the organiza tion
of jobs within a job family. It allows units to identify paths of job progression for
employees interested in improving their opportunities for career advancement and
increasing compensation.

54. Figure 5: Job Circular of Islami Bank Bangladesh Limited

55. 4.3 Recruitment
Recruitment and selecting are some of the important inputs to healthy organizational
activities. Recruitment procedure commences within the bank due to turnover, promotion,
retirement, new business strategy, etc.
Bank’s philosophy is to retain and develop the in house talents and hire the best performers
in the industry.
The recruitment procedure includes Internal Job watch and from external sources. Set of
skills, need availability, education, job description are the prerequisite criteria for a
successful recruitment.
4.3.1 Authority of Recruitment
As per Bangladesh Bank BRPD Circular 2009,
“Appointments to the services of the bank up to the two levels below the rank of the
Managing Director shall be made by the Board of Directors of the Bank. All other
appointmentsshall be made by the Managing Director of the bank as required under the
organ gram of the Islami Bank Bangladesh Limited (IBBL) bank duly approved by the
Board.”
Recruitment Process in Islami Bank Bangladesh Limited (IBBL):
In the recruitment process Islami Bank Bangladesh Limited (IBBL) follows two ways to
recruit new employees. One is External Recruitment and the other is Internal Recruitment.
In my report I have tried to focus both of these ways and described activities under them.
A good design of the recruitment process is a key to the successful recruitment and staffing
process.
The HRM Function has to focus on the design of the process and to cooperate with all the
involved parties - managers, employees, agencies and web recruitment services. The
recruitment process is unique for each organization and the HRM Function has to make
adjustments in the general design of the recruitment process, which can be taken from any
source.

56. The recruitment process design is not an easy job, but the HR Recruiter has to be smart
enough to bring the recruitment design, which will fit the organization’s need. The
recruitment process of Islami Bank Bangladesh Limited (IBBL) is like the following flow
chart-
Figure 6: Recruitment process of IBBL
 First a vacancy arises. This is due to the creation of a new job, on other occasions
it may be because an existing member of staff has been promoted or is retiring.
 The job description is updated and an employee specification is written. The job
description lists the duties of the job whilst the employee specification gives details
of the experience, skills and abilities needed to carry out the job.
 A vacancy advertisement is written and is circulated via the recruitment channel
that the bank uses. The channels including newspapers, internet recruitment sites,
corporate web-site.
Recruitment
Process
1. Creation
Job Vacancy
2. Preaparation of
Job Description
3.
Adsvertisment
of Vacancies
4.
Shortlisting
5.Interview
6. Referance
check
7. Giving
Appointment

57.  A shortlist (According to CV) is compiled of applicants who are going to be invited
to attend for interview. This is done by the recruitment panel that compares each
application form with the requirements of the employee specification.
 Interviews are held. The panel will use the same set of questions with each
interviewee. The interview includes a selection test.
 Then references are requested for check.
 Appoint the successful candidates and arrange induction.
Islamic Banks assess their needs for manpower recruitment with the company's
organizational goals. Open positions are advertised the National Dailies. The advertisement
mainly provides a description of the positions, scale of pay, age, nationality, educational
qualifications, experience and other terms and conditions of the application and service.
Current employees may apply to fulfill the advertised open positions. In terms of age of a
candidate, normally he shall not be less than twenty years and more than thirty years of age
at the time of appointment by direct recruitment as an officer, and not less than eighteen
years and more than thirty years of age at the time of appointment by direct recruitment, as
an employee other than an officer in the service of the banks. However, in special cases,
the employer can relax the upper age limit for reasons to be recorded in writing. In terms
of nationality, Islamic banks do not appoint any person to any post unless he is a citizen of
Bangladesh. Physical fitness is another important factor in the recruitment of personnel at
a bank. Thus an applicant must be declared physically fit by the Medical Officer of the
bank or some other Medical Authority specified by the bank on their behalf.
4.3.2 External Recruitment
The External Recruitment is the source of the fresh blood for the organization. As a very
critical HR Process, the external recruitment process has to be set up very carefully. The
external recruitment is a process, which is very sensitive to changes on the external market
like unemployment rate, labor-market conditions, economic factors and others and the
managers are very sensitive about that as well.
In Islami Bank Bangladesh Limited (IBBL) HR managers are mainly concern about how
to be successful with external recruitment and an obvious job market analysis.

58. External Recruitment Channels
Islami Bank Bangladesh Limited (IBBL) uses external recruitment channels to
communicate job vacancies to the public audience and the correct usage of the external
recruitment channel brings the right candidate for the particular job position. Generally,
the HRM is responsible for monitoring the job market and react appropriately to the
changes on the job market with the proper use of the channels used to bring the expected
level and number of candidates at the affordable costs.
Islami Bank Bangladesh Limited (IBBL) generally uses the following recruitment
channels-
 Corporate Web-site
 Newspaper
 Job Web-site
 Interns (Less frequently used)
HR managers in the bank has to make critical decision based on the same criteria for above
recruitment channels which are like speed, cost, quality, available external recruitment
budget. This means managers have to decide whether there is people willing to do job or
not, what channel will cost how much to the company, what will be the quality and is there
resources to bring new people in organization.
To use the external recruitment channel HRM department has to prepare the recruitment
plan in the beginning of the year so that the bank can allocate funds per channel.
The entire HR department has to be the decision maker as this department is responsible
for the cost and quality of the delivered candidates.
4.3.3 Internal Recruitment
Internal recruitment refers to the filling of job vacancies from within the business -where
existing employees are selected rather than employing someone from outside.
Sources of Internal Recruitment
In Islami Bank Bangladesh Limited (IBBL), it has several sources of recruiting internally.

59. The following are the most commonly used methods of recruiting people in Islami Bank
Bangladesh Limited (IBBL)
 Promotions & Transfers: This is a method of filling vacancies from within
through transfers and promotions. Transfer is a lateral movement within the same
grade, from one job to another. It may lead to changes in duties and responsibilities,
working conditions, etc., but not necessarily salary.
 Job Posting: Bank uses another way of internal recruitment which is Job Posting,
another way of hiring people from within. In this method, the organization publicize
job opening on bulletin boards, staff notice board, in-house magazine.
One of the important advantages of this method is that the bank enjoys a chance to highly
qualified applicants working within the company to look for growth opportunities within
the company.
 Employee Referrals: Employee referral means using personal contacts to
locate job opportunities. In Bangladesh most of the people gets job by using
employee referrals. It is a recommendation from a current employee regarding a
job applicant.
Employees working in the organization are encouraged to recommend the names of their
friends, working in other organizations for a possible vacancy in the near future. In fact,
this has become a popular way of recruiting people highly competitive job markets
nowadays.
Internal Recruitment Benefits
The internal recruitment process has some benefits for the bank. Internal benefits for
IBBL are like following:
 Economical: The cost of recruiting internal candidates is minimal. No expenses
are incurred on advertising.
 Suitable: The organization can pick the right candidates having the requisite skills.
The candidates can choose a right vacancy where their talents can be fully utilized.

60.  Reliable: The organization has the knowledge about suitability of a candidate for
a position. The bank can identify who will be more reliable for the known position.
Because the bank believes ‘Known devils are better than unknown devils’.
 Satisfying: Internal recruitment within the bank is a policy of preferring people
from within offers regular promotion for employees. It motivates them to work hard
and earn promotions.
 Retention: Internal recruitment is a way to retain most potential employees in
IBBL.
Internal Recruitment Weakness
At one side Islami Bank Bangladesh Limited (IBBL) enjoys the benefits of internal
recruitment also simultaneously it has some weakness. The main weakness for the bank
are-
 Limited choice: The internal recruitment of the employees reduces the area of
choice. The reduction in the area of choice means less number of applicants. The
choice is to be made out of people working in the bank. It discourages entry for
talented people, outside the organization.
 Encourages Favoritism: Internal source encourages favoritism in this system.
Most of the time it is seen that the superiors usually select their favorites. The worst
part of this system brings sometimes huge loss for the bank as a less capable person
is appointed for the post.
 Restriction on Fresher: The defect of the internal source of recruitment is that the
young people fully equipped with the modern technical knowledge but they remain
excluded from entry. As a result, old people run the bank with their old ideas and
thinking.
4.4 Selection
Selection in theoretical term: Selection is the process of picking individuals who have
relevant qualifications to fill jobs in an organization. The basic purpose is to choose the
individual who can most successfully perform the job from the pool of qualified candidates.

61. The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organization best, to find out which job applicant will be
successful.
To meet this goal, the company obtains and assesses information about the applicants in
terms of age, qualifications, skills, experience, etc. The most suitable person is then picked
up after eliminating the unsuitable applicants through successive stages of selection
process.
Any mismatched in this regard can cost an organization a great deal of money, time and
trouble.
4.4.1 Selection Process
Selection is usually a series of hurdles or steps. Islami Bank Bangladesh Limited (IBBL)
follows its own established Selection process for selecting appropriate candidates. In this
process each of the steps are successfully cleared before the applicant proceeds to the next
one.
Figure 7: Selection Process
Selection Process of Islami Bank Bangladesh Limited (IBBL) starts with the screening of
available resumes for a particular job.
Screening Resumes or
Applications
Written Test
Employment Interview
Reference Check
Final Approval
Employment
Induction

62.  Screening of resumes is done for figure out totally undesired or unqualified
candidates. It is essentially a sorting process in which the necessary information is
elicited from the candidates about their education, skills, experience.
 After sorting interview HR personnel of the bank sort out the eligible candidate for
the position and are being asked for sitting in written exam. In written test of Islami
Bank Bangladesh Limited it takes several tests.
These are:
a. Conceptual Test: In conceptual the candidate is given a case study. In that
the bank can measure how effectively the candidates respond to the given
scenario.
b. Informal Test: Informal test is kind of a candidate may have to act in a role
play. Sometimes candidates are given a scenario and are asked to what he
or she would do if the situation arises.
c. Intelligent Quiz Test: Intelligent quiz test is like MCQ type. Candidates
are some kind of mathematical problem in MCQ type and have to answer
those.
d. General Knowledge: In written test of Mutual Trust bank candidates have
to face general knowledge test. In this test candidates have be aware about
the current affairs of the country as well as internationally. Also some
historical facts have to answer.
 Interview is an essential element of selection and no selection procedure is
complete without interviews. And Islami Bank Bangladesh Limited (IBBL) is no
exceptional from this step.
In the interview candidates are asked questions related with their educational background,
past work history, training attended and other which are filled in their resume. In Islami
Bank Bangladesh Limited (IBBL) when a candidate sits for interview the panel takes some
test of the candidates. These are like-

63.  Intellectual Test: These are mental ability tests. The interview panel measure
the candidate’s learning ability and the ability to understand instructions and
make judgments. These tests also measure several abilities such as memory,
vocabulary, verbal fluency etc.
 Skill Test: Skill test measure an individual’s potential to learn certain skills like
accounting, mechanical, mathematical, etc. This test indicate whether or not
an individual has the capabilities to learn a given job quickly and efficiently.
 Personality Test: Interview panel of Islami Bank Bangladesh Limited (IBBL)
measures a candidate’s personality test generally through the style of him/her.
Candidate’s dress-up, grooming style, way of behave and talking all those
reflects personality and this is an important factor for hiring the selected
candidate.
 Integrity Test: This test is taken to measure the applicant’s honesty. The
applicants are expected in this test to answer in “yes” or “no”.
 Reference check in selection process is an important point. Here candidates are
asked to mention in his application form, the names and addresses of two or more
persons who know him well.
These may be his previous employers, heads of education institutions. These people are
requested to provide their frank opinion about the candidate without incurring any liability.
 After the interview candidates are short listed by the department and are finally
approved by the executive of concerned department.
 After final approval, employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary grade, the date by which the candidate
should join and other terms and conditions in brief.
 Induction is done in bank after joining of a new employee. Induction is the process
of receiving employees when they begin work, introducing them to the company
and to their colleagues, and informing them of the activities, customs and traditions
of the company by the branch manager.