Executive Summery:

In the complex business world functionality of an organization depends on various factors and persons combined. People are a basic part of any business. Not just as service receiver but also as service render. The success of an organization hugely depends on the efficiency of the people who run the business.

Today’s workers are likely to find themselves working on teams with various people from across the organization. And, of course, global competition has increased the importance of improving workforce productivity. Thus, organizations need Human Resource Management to make its employees skillful and maintain the practices that enhance efficiency.

IFIC Bank Ltd. is one of the oldest and most successful financial institutions in Bangladesh. Quite obviously, they use effective HRM to manage their workforce. The understanding of the effective basic functions of human resource management at IFIC Bank Ltd. is rather simple and precise.

Company Profile

IFIC BANK IN BANGLADESH

General Background:

Registered in October 08, 1976

Key Business Area

Retail Banking

Corporate and Institutional banking

SME Banking

Total Asset: Tk. 45729.47 (in crore)

Total Liabilities: Tk. 20536.26 (in crore)

About IFIC Bank:

International financial investment and commerce (IFIC) Bank Limited started banking operations

on June 24, 1983. Prior of that it was set up in 1976 as a joint venture finance company at the

instant of the Government of the People’s Republic of Bangladesh. Government then held 49

percent shares while the sponsors and general public held the rest. The objectives of the finance

company were to establish venture Banks finances companies and affiliates abroad and to carry

out normal functions of a finance company at home. When the Government decided to open up

banking in the privet sector in 1983 the above finance company was converted a full-fledged

commercial Bank. Along with this, the Government also allowed four other commercial banks in

the private sector. Subsequently, the Government denationalized two banks, which were, then

fully Government-owned. While in all these Banks Government is holding nominal 5 percent

shares, an exception was made in the case of the Bank. It retained 40 percent shares of the Bank.

The decision by the Government to retain 40 percent shares in IFIC Bank was in pursuance of

the original objectives, namely, promotion of the participation of Government and private

sponsors to establish joint venture Banks, financial companies, branches and affiliates abroad.

Now, 32.72% of the Bank’s shares is owned by the peoples republic of Bangladesh. Moreover,

11.42% is owned by the Board of the Directors and rest is owned by the share holders.

Human Resource Development

The Bank has a Human Resource Development & Research Department to develop human

resources internally. The Academy is equipped with professional library, modern training aids

professional faculty and other facility. It is now under Personnel & Human Resource

Development & Research Division. The Academy conducts regularly foundation courses,

specialized courses and seminars on different areas of banking to take care of the professional

needs.

All kind of situations, internal and external, related to human resource is monitored through the

HR department. Eventually this bank uses all the basic internal functions of HR to run the entire

organization.

Among those specifically:

Staffing

Training & development

Motivation

Maintenance

Staffing

Planning:

Although recruiting is frequently perceived as the initial step in the staffing function, it has

prerequisites. Specifically, before the first job candidate is sought, the HR specialist must embark

on employment planning. Specifically, when an organization plans strategically, it determines its

goals and objectives for a given period of time. These goals and objectives often lead to

structural changes in the organization; that is, these changes foster changes in job requirements,

reporting relationships, how individuals are grouped, and the like. As such, these new or revised

structures bring with them a host of pivotal jobs. It is these jobs that HRM must be prepared to

fill. HRM identifies the essential qualifications for a particular job.

Recruitment:

The process of seeking sources for job candidates.

Objectives:

1) To ensure that the availability of HR with requisite skills, expertise, knowledge and abilities is

at par with the Bank’s demand.

2) To ensure that the continued operation of the bank goes smoothly with the right number of HR

of right quality.

3) To ensure that the most promising and best qualified candidate are selected for filling up

organizational vacancies.

The main requirements of the recruitment policy of the bank are:

1) Must be a citizen of Bangladesh.

2) Must be physically and mentally fit as declared by bank’s physician or civil surgeon of any

district or physician of any registered Medical college/university/hospital.

3) Candidates must not be over 30 years

4) Must submit valid document for declaration of age.

Qualification and Procedure for recruitment:

Office attendant

Qualification: minimum SSC

Age: maximum 30 years

Procedure:

gathered application from different sources

performance in the interview board

Security Staff

Qualification: minimum SSC

Preference: Ex Army, Navy, Air force, Police, Ansar o BDR

Age: minimum 40 years

Procedure: Same as before

Office Assistant

Qualification: minimum graduate

minimum typing/ word processing speed of 20 words per minute

and MS Office knowledge

Age: minimum 30 years

Procedure: Same as before

Office Assistant (S.G):

Qualification: minimum graduate

minimum typing/ word processing speed of 25 words per minute

Age: minimum 30 years

Procedure: Same as before

Cash officer:

Qualification: minimum graduate with at least 2(two) 2nd division or equivalent CGPA

Age: minimum 30 years

Procedure: Same as before

Computer officer:

Qualification: minimum graduate with at least 2(two) 2nd division or equivalent CGPA

Age: maximum 30 years

Procedure: All knowledge about a PC hardware/software

Grade II officer:

Qualification: Masters in any discipline/graduate with 4years honors without any 3rd division

result in the entire academic career

Age: maximum 30 years

Procedure: Same as before

Probationary Officers:

Graduate with honors in

1) Business Administration

2) Bank Management

3) a) Economics

b) Accounting

c) Marketing

d) Finance

e) Management

f) Finance and Banking

g) English

h) Mathematics

i) Statistics

j) Computer Science

Recruitment is done once every year according to the requirements of IFIC BANK. After the

resumes are gathered, a team is formed to check the applicants’ background whether they have

any bad records or not and moreover family history is also checked. After the background is

checked all the certificates are send to education boarded for verification. In addition, past

service records are being verified so that the management can get the assurance of hiring

competent employees.

Selection:

The management of the bank will analyze the manpower requirement of branches at least once a

calendar. After assessment of manpower need in line with the organogram of branches,

management will recruit required number of candidates as per policy. All appointments will be

made in accordance with IFIC bank services rules, bank administrative power and as per

norms/guidelines of Bangladesh Bank.

Written test:

Probationary officers will be hired every year through advertisements in national dailies. The test

will be conducted by IBA or BIBM, DU. If they are unable to take the test any other organization

may be entrusted with the responsibilities.

Training & Development

Human Resources Development is focused on recruitment and in-house training for both on the

job and off the job Bank staff members through the Bank’s Academy.

Training:

Objectives:

1) On the Job training to ensure high performance and safe time

2) To make familiar with the law and practice of banking through foundation training

3) To develop analytical and decision making skills of the employees

4) To develop understanding about human/conceptual skill and organizational culture

5) To impart managerial skills to groom future executives and to keep existing Executives

updated with national and international business environment.

IFIC Bank Academy – the oldest institution in the private sector – was conceived of as an in-

house training center to take care of the training needs of the Bank internally. Academy is fully

equipped with a professional library, modern training aids and professional faculty. Library has

about 4941 books on banking, economics, accounting, management, marketing and other related

subjects.

Main training activities consist of in-depth foundation programs for entry level Management

Trainees

During its 23 years of existence, Academy not only conducted courses, workshops and seminars

as required by the Bank, but it also organized training programs for the Bank of Maldives, Nepal

Bangladesh Bank Limited and Oman International Exchange LLC. In addition, Academy has

also the credit of organizing system of Bank of Maldives.

In addition to conducting courses internally, the Academy also selects candidates for nomination

to various courses conducted by distinguished training organizations in the country including

Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management.

The Academy also re-designs its courses, programs etc, regularly to meet the requirement of new

skills arising out of various directives, guidelines of the Central Bank and significant changes in

the banking sector from time to time.

IFIC Bank’s Academy works under the Training and Recruitment division headed by senior

executives.

Organogram of Human Resource division and its basic functions under Head office:

Board of Directors

Managing Director

Head of HRD

Development Maintenance MotivationStaffing

-HR planning

-Selection

-Recruitment

-Placement

-Disciplinary Action

-Orientation

-Employee Training

-Employee development

-Career Development

-Performance appraisal

-Health and Safety

-Communication

-Employee Relations

-Job design

-Reward and Compensation

-Employee Benefits

Figure: Organogram

IFIC bank adopts a mix training methodologies for a successful and effective training and they

are:

1)Conceptual class room session

2) Case studies

3) Simulated lessons

4) Group discussion

5) Study visit

6) Project work

7) Communicating with senior Bankers/Academies

8) Panel discussion

9) Use of various training aids

Evaluation of training courses:

a)Foundation courses: Three tests will be conducted in the areas of General Banking,

Accounting, Credit and Foreign exchange.

b) In case of fresher, specialized courses and workshops are prepared. Course directors will

prepare an evaluation report on the performance of the participant on the basis of their

own observation as well as of speakers and session takers.

c) Evaluation report on the courses and performance report of the participants of the

foundation course will be submitted to the Management for necessary action when

required.

Moreover IFIC bank has external sources through which training is held:

1) Bangladesh bank training

2) Bangladesh Institute of Bank management (BIBM)

A committee is selected by the management who will select the participants depending on the

need, suitability and potential and they are sent abroad on training, attending seminars etc.

Development:

Specialized training programs in the areas like general banking, advance, foreign exchange,

marketing and accounts etc. are also organized by the Academy depending on need.

Frequently outreach programs are organized to meet demand for new and specialized skills.

Motivation

Promotion Policy:

promotion will be considered as “VERTICAL ELEVATION” in organizational hierarchy

usually with enhances pay, allowance, & status.

Objectives:

1) Through demonstration of merit and performance as a result organization assume for giving

higher responsibilities in Bank progress.

2) Giving due importance to performance/merits/potential on employees

3) Retaining good performers in the service of the bank

4) Encourage and motivate the average performers to do better.

5) Promoting on the basis of need of the bank, that is, business expansion/branch expansion/ and

future growth potential.

Promoting Factors:

Academic as well as professional qualification

Knowledge of banking rules and regulations

Job performance as evident from performance appraisal reports

Length of services or seniority in the grade

Potential for development and contribution to the growth and development of the

bank

Clean service record

Smartness

Satisfactory performance in interview

Increment policy:

Increment is a kind of performance bonus that is given as a percentage of the basic salary.

Objectives:

1)To enable employees to bear the incidence of inflation

2)To motivate employees to improve performance

3)To retain the performing employees for growth and development of the bank

These increments follow some characteristics:

Yearly one increment

Who ever has satisfactory performance can get their entitled increment.

At least 180 days in service

If any one has entitled to disciplinary actions then until the pension is clear

increment is not entitled

Compensation Policy:

This function generally deals with paying the employees of an organization.

Objectives:

1) To provide social security to employees by offering financial benefits in exchange

for their past service rendered to the bank.

2) To attract, motivate and retain competent employees

3) To ensure fairness in respect of determination of wage or salary that is appropriate

for the demands and requirements of a particular job within the organization.

Types of compensation:

Contributory provident fund

Leave encashment facility

Contributory welfare fund

Death risk coverage benefit

Maintenance

Activities that help retain productive employees are known as maintenance function of an

organization. The activities that are undertaken in this regard in IFIC Bank Ltd. are :

Health care for officers and their spouses are paid by the bank but for other

immediate family members small premium is charged.

Life insurance premium for the employees are paid by the bank.

Easy conditioned loan system for the employees.

External Factors:

Labor union:

Since IFIC bank is a private bank, to avoid any sort of unrest and lock out

between the employees Bank does not allow any kind of union activities. As a

result every officer from lower level to higher lever are entitled with a position as

White Collar so that union activities are avoided.

Government legislation:

Government sets some common rules and regulation which has to be followed by

each and every branch of every bank. Moreover the legislations are direct ordered

from the finance ministry to Bangladesh Bank and Bangladesh bank imposes

them to all the banks of the country that are forced to follow the law.

Recent news about IFIC Bank Ltd.

There have been some unrest as the officials of International Finance Investment and Commerce

Bank, IFIC Bank, boycotted an evaluation test of the bank officials held on 23 July, 2010,

terming the exam demeaning.

They feared that they would lose their jobs after the test and the board of directors would then

replace them with the board's chosen people.

Some 1,500 officials, below the rank of assistant vice-president, were asked to sit for the test,

which was supposed to be held simultaneously at six divisional cities. Eshna Consulting Team

was employed by the bank to conduct the test. Like Dhaka, the test was boycotted in Chittagong,

Rajshahi, Khulna, Sylhet and Barisal divisions.

There is no rule or regulation stating that employees are to be subjected to tests for evaluation of

their performances. Only time the tests are taken are when the employees are selected for

employment. The central bank has also asked the IFIC bank why it was taking such a test.

The bank's human resources development program and recent actual performance contradicts

somewhat to the chairman's statement about the employees' alleged inabilities.

It may be mentioned in this regard that, at the end of 2009, the total asset of the bank was valued

at Tk 6,290 crore, which was Tk 4,573 crore a year ago.

Comments:

So far it has been found that IFIC Bank Ltd. is a renowned organization touching the peak of

success in its services. The bank’s management has always been very considerate and tactful

regarding the administration of employees and has always appreciated the contribution of the

employees to create satisfaction. But the recent practice of management that has resulted in the

appointment of a new chairman has created strong dislike and dissatisfaction among the

employees. The bank management needs to prove their goodwill for employees to gain employee

trust and thus run the bank as a successful one.

Bibliography

1) http://www. ificbank bd.com [ONLINE], available

2) P. Robinson, Stephen & A. DeCenzo, David, Fundamentals of Human

Resource Management, Eighth edition

3) IFIC BANK Academic Library

4) Rahman, Sajjadur, IFIC officials boycott test for evaluation, The Daily Star,

24 July, 2010

Table of Contents

Topic Page no.

About IFIC 1

Four basic Functions 2

Staffing

Planning 3

Recruitment 3

Selection 6

Training & Development

Training 7

Development 11

Motivation

Promotion Policy 11

Increment Policy 12

Compensation Policy 13

Maintenance 13

External Factors 14

Recent News 15

Comments 15