The Evolution of Indian Accounting Standards: Its History and Current Status with Regard to International Financial Reporting Standards

1. Introduction Propelled by globalization, world charge today is centered on two emerging market economies, India and China. Chinas managed liberalisation has eitherowed it to obtain to a greater consequence rapid growth and has attracted a larger plenty of direct extraneous enthronization. India, with its messy democracy and nod to individualism in novel epochs promises a more exciting market environs with greater potential for future growth. The liberalization of the Indian economy since 1991 has subject Indian substantials to strange competition and foreign investment.As a result, the teaching of necessity take by some(prenominal) managers and investors induct changed. A premier step in this process is the demand for transp atomic number 18ncy in the m unrivaledtary coverage. This transp atomic number 18ncy is rapidly occurring in India as the res publica catapults into becoming a study economical power propelled on by the combined forces of the technologi cal revolution, the opening up of its borders and the privatization of many a(prenominal) infrastructure industries such as cargo ships and communication.This base addresses the adoption and applicability of inter depicted objectist keep up Standards (IAS) and multi offspring fiscal report Standards (IFRS), issued by the external be Standards Board (IASB) to India. 3 Specifically, the paper highlights some major argonas where the country needed harmonisation with IAS in 1993 and the rapid congruity with IAS in the decade that followed. The tackle to achieve congruence with IAS appears to be more a by-product of the countrys rapid economic growth rather than its catalyst.However, go on growth and the attraction of foreign capital to domestic ventures will figure on the transp bency of the fiscal dealings. The Institute of the Chartered Accountants of India, (ICAI), Indias standard mountain ashes, is increasingly attempting to brook this transparency by revisions and additions to history standards, and by word picture Drafts which aim to bring India more in attract with foreign pecuniary Reporting Standards. The focus of this paper is on the evolution of these Indian business relationship Standards. 2.Literature re judgement In order to effectively review the belles-lettres with regards to harmonization of history standards in general, it is deemed appropriate to beginning examine the International Accounting Standards Boards (IASB) position, reasons for harmonization, and recent efforts towards this goal. Epstein and Mirza (1997) define the IASBs goals as first, to promote the acceptance of proposed pipe declension relationship standards across the world and second, to continue improvement in the harmonization of account standards, regulations, and procedures.As of 1990, viteen countries had achieved 100% conformance with the thirty IAS that existed at the time, and vii growing countries such as Pakistan and Malaysia had pic k out IAS fully as their experience national standards (Gernon, Purvis, & Diamond, 1990). As of October 2007, a total of seventy-three countries have make IFRS a requirement for reporting for domestic listed companies. De go against this seemingly general acceptance, some research suspects the irrelevance or inapplicability of common standards in sure national environments (Larson and Kenny, 1996, Larson and Kenny, 1995, Summer and Fechner and Kilgore, 1994).Based on their research, Larson and Kenny (1996) conclude that the adoption of IAS depend on a countrys economic education theory, and its proposed take aim of adoption of the IAS. They withal muster no support for the hypothesis that there is a positive coefficient of correlation between adoption of IAS and level of economic growth, and between adoption of IAS and level of virtue market increment (Larson & Kenny, 1995).In a panel reciprocation of policy setters concerning harmonization of score standards in 1990, se veral panel members tell that harmonization of account statement standards may non be appropriate or cost effective. They call forthed large, multinational companies around the globe had the abilities and the specie to cope with lack of harmonization. As a result, they perceived a lack of incentive for preparers and users to patch up accountancy standards (Gernon et al. , 1990). The largest obstacle hindering the harmonization of history standards is national assimilation, in particular in develop countries.Riahi-Belkaoui (1995) researched the required invoice standards across thirty-three national billet transforms and make that business relationship manifestation is significantly affected by the cultural dimensions of power distance, individualism, and uncertainty avoidance studied by Geert Hofstede. In particular, Riahi-Belkaoui (1995) found that in societies in which people accept a hierarchic order in which e realone occupies a place that needs no excuse peop le are expected to take care of themselves and their immediate families still. As a result, these societies are tolerant of ambiguity and have industrial-strength conditions for wide disclosure requirements of stock exchanges (p. 124). Hence, disclosure requirements of stock exchanges of certain developing nations were more extensive than that nations general monetary reporting standards. This is a major point in the case of India, whose stock exchange, for example, required a account of hard currency flows long originally its general standard setting body did in 2000.Also, since 2002, unify fiscal statements have been required by the Securities commuting Board of India, while the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) nevertheless provides some loose guidelines to date (Deloitte, 2007). Along this same vein, opposite researchers suggest the act of many external factors on the development of invoice standards such as cultural factors, the external environment, and the institutional structure (Fechner and Kilgore, 1994 and Doupnik and Salter, 1995).According to this research, these variable effects on order of account standard setting are significant, and along with varying legal formations, are found to be major de margeinants which type conflict in setting invoice standards (Doupnik & Salter, 1995). Fechner and Kilgore (1994) have proposed a modify general framework to assess the extent to which economic factors, cultural factors, and the accounting subculture (uniformity, professionalism, conservatism, and secrecy), directly or indirectly affect accounting practise.In spite of opinions, conflicts and hindrances to the contrary, there is abundant support in favor of transnational accounting harmonization and for the adoption of IAS in the literature (Epstein and Mirza, 1997, graham flour and Wang, 1995, Wyatt, 1992, gush and Gernon et al. , 1990). For example, Gernon et al. (1990) point out that the benefits of harmonization range from better decision making within a firm with respect to asset allocation, to improving the efficiency of capital markets, and increasing fight among firms within and across national boundaries irrespective of a countrys stage of development.Complementing this argument, Riahi-Belkaoui (1994), line of merchandises that accounting standard harmonization is crucial to a developing country which needs outside capital or foreign loans as potential investors and creditors ofttimes rely on these financial statements in making decisions such as allocation of capital. Furthermore, he points out that harmonization is often mistaken for collar standardization (1994) whereas harmonization recognizes the specific needs of each country.Therefore, he suggests the first step in harmonization should be to recognize certain country specific issues, and to reconcile them with the objectives of other countries. The second step should be past to correct or eliminate some of these barriers in order to achieve an acceptable degree of harmonization. As a starting point, the evolution of the Indian accounting form is investigated and the various domestic entices, such as economic, political, legal, socio-cultural and academician factors, are considered along with international influences that may have had an impact.Secondly, the bare essentials of the Indian accounting system of rules are juxtaposed with the international standards and a discriminate and lineage approach is adopted for the purpose of digest. Thirdly, the major differences with respect to accounting treatment statutory requirements for certain items and alto ascertainher absence of these requirements for other items are highlighted, along with the degree of disclosure of information in financial reports. Finally, an attempt is make to identify various causes and effects of such differences and variations. 3.The pastal development of Indian accounting standards The evolution of Indias present day accounting system can be traced back to as early as the sixteenth century with Indias trade links to Europe and central Asia through the historic silk route. The subsequent entry of the eastern nearly India family had widespread influence on Indian trade and commerce, and soon the economy was virtually taken everyplace by the companys owners. The British government, realizing immense potential by way of business opportunities, natural re lines and manpower, decided to colonize India by taking over the East India Company.The British Raj (rule) explains the almost identical pattern of accounting and financial reporting implements between India and England (Marston, 1986). However, since 1947, when India regained independence, some changes have taken place to accommodate the extra needs of the Indian economy. Indian accounting practices glow its diversity as India has octettesomeeen official spoken languages and scores of dialects spread over twenty eight states and seven union territories. Each state has its own distinct culture and general trade practices.Furthermore, the accounting practices of the unorganized rural/agricultural field and the small-scaleurbanindustrial sphere vary considerably from one region to another. The establishment of a certain uniformity in the accounting and trade practices for these sectors is, therefore, nearly impossible. Moreover, a large number of businesses are controlled by tightly knit conservative families and the prudence of such businesses is usually very reluctant to disclose any financial information for reasons of privacy and dismay of competitors. 4A vast majority of the Indian population lives in the rural area, with very low levels of education and economic development. The primary source of income for this majority is through agriculture, although virtually no agricultural accounting system exists. Due to the linguistic and intra-cultural differences, it is too not possible to bring close to a standardization in rural accounting practices. Changes to this scenario began to occur with the trigger of the Panchayati system or the grass roots level of administration by the late Prime minister, Rajiv Gandhi.This program empowers the Village Chief with political and financial administration within the boundaries of the Indian Constitution, and has been fairly successful in that it has made a substantial dent on the existing sluggishness in the to a lower placeground economy. In sharp contrast, India is one of the worlds largest industrial nations in the world, a military superpower in its own right, and a world draw in space research and satellite technology. A jolt to the Indian economy occurred in 1991, when India strained for foreign reserves and pressure from the International Monetary Fund, (IMF) introduced major changes in economic policy.The net result was a substantial reduction in government interference and in levyes on the business sector, long favored by then Finance Minister (now Prime Minister) Manmohan Singh. Markets were opened up to foreign collaboration and investment. Segments of the public sector were privatized (Anderson & Lanen, 1999). As a result, India has emerged as a major player in exporting software technology, industrial and consumer goods, and financial services through a large number of multinational corporations.The presence of such global conglome orders also means increased interaction with international organizations such as the conception blaspheme, International Monetary Fund, United Nations, and the Organization for Economic Cooperation and Development, just to address a some. However, the public sector still continues to play a major role in the Indian economy since all industries that are relevant to national defense and security are owned by the Indian government and account for a major portion of the nations industrial economy.The accounting practices of this public sector, along with that of the organized private sector, fall into the realm of The Companies Act, 1956, and are similar in many respects to International Accounting Standards. The enfolding of international institutions and businesses in financial matters makes it even more imperative that the Indian accounting system be compatible with its international duplicate. The Indian accounting system, which is based on the Companies Act of 1956, is basically a copy from its counterpart in the U. K. The Act has been amended several times to suit Indian conditions.More notable amongst the amendments are the ones in 1965 and 1969, which introduced regulations relating to maintenance of cost accounts and requirements for a cost audit. Also relevant are the two notifications issued in 1971 and 1973, which extended disclosure rules considerably (Marston, 1986). look efforts at several Indian universities and other organizations have been commendable and have exerted influence on the accounti ng system in that they have focused on the changing needs of accounting with respect to the rapidly changing economic and technological environment.Such organizations entangle the Indian Council of Social Science Research, which organizes research surveys in the areas of accounting and financial solicitude the Indian Accounting Association, which has made significant contri saveions through mugwump accounting research and the Institute of the Chartered Accountants of India, (ICAI), which promulgates accounting standards for use by Indian companies. 5 Other international bodies, of which India is an active member, have also contributed towards bringing the Indian accounting system to par with International Accounting Standards.Examples of such bodies are the Confederation of Asian and Pacific Accountants and the Ad hoc Intergovernmental running(a) Group of Experts on International Standards of Accounting and Reporting (Marston, 1986). In addition, the pecuniary Stability Forum or ganized by Finance Ministers and Central Bank Governors of the G7 has helped to promote standards for global best practices (Echeverri-Gent, 2001). As a result of all these forces, an amendment to the Companies Act was enacted in October 1998 which established a new study consultatory Committee on Accounting Standards (Deloitte, 2007).However, cultural and political dimensions continue to influence Indias accounting practices. 4. Comparative abstract of the international accounting standards and the accounting standards and practices of India Our analysis of the differences in International Accounting Standards (IAS) and the accounting standards and practices of India is presented in this section. Gernon et al. (1990) note six ways of evaluating national standards in colligation with the IAS, which they extracted from an IASC survey entitled visual sense of the Use and Application of IAS 1988.The six categories are as follows 1. IAS adopted as national standard, 2. IAS used as t he basis for a national requirement, 3. National requirements conform in all material respects, with IAS, 4. National practice in the main conforms with IAS, 5. National requirements do not conform with IAS, and 6. National practice does not generally conform with IAS. Differences between accounting standards issued in India and accounting standards issued by the IASB fall under items five and six either national requirements do not conform, or national practice does not conform.Using these criteria, Gernon et al. (1990) found Indias conformity index with IAS to be 56%, in the decade before the 90s. It was the fifth lowest among the countries personifyed. Since Gernon et al. s study in 1990, the IASB revise many of its standards, which became effective in 1995 (Epstein & Mirza, 1997). This Comparability/Improvements range attempted to narrow the alternatives lendable to adopting countries. 6 Ten IAS were revised under this project and are include in IAS 1997 variation and Appl ication of IAS 1997.The standards affected include inventories errors and changes research and development construction slenderizes property, plant and equipment revenue recognition retirement benefits foreign exchange regulates business combinations and borrowing costs (Epstein & Mirza, 1997). Our research and analysis of IAS includes these revisions. For purposes of our research, accounting standards used in India were extracted from the International Accounting Summaries of 1993 (Coopers & Lybrand (International), 1993) and from the Accounting Standards Updates by jurisdiction (Deloitte, 2007).This includes accounting standards and guidance notes issued by the Institute of Chartered Accountants of India (ICAI) and the Companies Act of 1956. The ICAI had issued 12 standards as of 1993, seven of which were authorization. These 12 standards are contrasted against the IAS. 7 Appearing in descending order of IAS, the major differences in accounting standards are outline below ac cording to the same format used by whole meal flour and Wang (1995). 4. 1. IAS 2 InventoriesBased upon the Comparability / Improvements Project, the base stock order for be of inventories is now prohibited, while the last-in, first-out (last in first out) method, has been reduced to an cedeed alternative (Epstein and Mirza, p. 11). The Indian Accounting Standard, AS 2, revised in 1999, is generally in line with the IAS now with first in first out being the popular method among public limited companies. However, there are many firms still using the LIFO method, which is the allowed alternative under IAS, (Shankaraiah and Rao).This practice contrasts with the earlier period when under accounting standards issued by the ICAI, the base stock method could be used in exceptional circumstances, and the LIFO method was normally accepted (Coopers & Lybrand (International), 1993). Yet the fact that different procedures are still allowed make it challenging to compare performances across firms. 4. 2. IAS 7 funds flow statements Epstein and Mirza (1997) note that national and international accounting standard setters view the statement of cash flows as a necessary factor of recognise financial reporting.Thus, the statement of cash flows is a required component of a set of financial statements to be prepared under IAS. nether standards issued by the ICAI, AS 3, revised in 1997, either a funds flow statement or a statement of cash flows is acceptable. In practice, the majority of firms provide a funds flow statement with their yearbook reports. This is a significant change from the earlier period when the statement of changes in financial position (funds flow statement) was recommended but was not common practice (Coopers & Lybrand (International), 1993).However, under Clause 32 of the listing agreements for stock exchanges, a cash flow statement in similar conformance with the corresponding IAS was required for Indian companies at the time. An example could be f ound in the1995-6 yearly Report of Tata Iron & Steel, now Tata Steel (Tata Iron & Steel, 1996). 4. 3. IAS 8 enlighten profit or loss for period, fundamental errors and changes in accounting policies impressive in 1995, IAS 8 allows as an alternative, inclusion the effects of errors in present-day(prenominal) period income, while the ICAI standards (AS 5) permit this approach as the only accounting treatment.However, AS 5 requires only the disclosure of prior period items but not its effect on current income (Shankaraiah and Rao). AS 5 was revised in 1997 and an exposure draft was issued in 2001 proposing limited revisions. 4. 4. IAS 11 building obtains Based upon the IASBs Comparability/Improvements Project, the percentage-of-completion method for accounting for construction contracts is required, and the completed contract method is no longer allowed.The ICAI standard, AS 7, revised in 2002, allows for both the percentage-of-completion method and completed contract method bu t recommends the percentage-of-completion method if a reliable estimate of the outcome is possible. Also, under the umbrella of construction contracts is IAS 23 Borrowing Costs. chthonian IAS, interest incurred on a construction contract should be expensed. This is the benchmark treatment. Capitalization of interest costs is an allowed alternative. The ICAI standards, AS 16, allow capitalization of interest if it is incurred during the period of construction. 4. 5.IAS 12 Accounting for taxes on income IAS 12 permits the use of the tax deferral method or the tax financial obligation method, in accounting for income taxes. The ICAI permits use of the tax payable method or the tax liability method. Also, the IAS prescribe a three year blast period before timing differences can be excluded, while under tax laws in India the reversal period is five years. Also, under tax laws in India, a tax loss is permitted to be carried forward for eight years, while IAS 12 does not specifically prescribe a time period. 4. 6. IAS 14 Reporting financial information by segmentIAS 14 requires disclosure of segmental information if the firm has public subsidiaries, or if national standards require such treatment. AS 17, issued in 2000, is broadly in line with IAS 14. No such requirement existed earlier, but there were extensive disclosure requirements when reporting by product. As of October 2007, IAS 14 has been superseded by IFRS 8 direct segments. 4. 7. IAS 16 Property, plant and equipment on a lower floor the Comparability/Improvements Project, IAS 16 now suggests historic cost as the benchmark in valuing property, plant and equipment. Revaluation is the allowed alternative.Under the ICAIs standards, AS 10, the appraisal method is preferred, and the most common in practice. 4. 8. IAS 17 Accounting for leases Accounting standards issued by the ICAI did not include leases in 1993. In practice, no distinction was made between financial and operating leases. Under IAS 17, provisions for accounting for leases include both capital and operating leases. Accounting standards for leases were issued by ICAI in 2001, AS 19. These standards are broadly in line with IAS. 4. 9. IAS 19 Retirement benefit cost IAS 19 requires actuarial valuations to be allocated to income on a systematic basis.Also, new under the Comparability / Improvements Project the accrued benefit valuation method is the benchmark in accounting for pensions, and the projected benefit method is the allowed alternative. Standards issued in India, AS 15, had no language concerning valuation methods, and no specific reference on how to account for actuarial valuations. However, the standards that were revised in 2005 and became effective in 2006, require that enterprises actuarially determine and provide for such liability based on the Projected Unit credit entry Method(Deloitte, 2007). 4. 10. IAS 21 The effects of changes in foreign exchange rateSince accounting standards issued by the ICA I do not require integration, the effect of changes in foreign exchange rates are reflected in the financial statements of the foreign branches of the parent company. The benchmark under IAS 21 is to recognize the effect of fluctuations in exchange rates as differences in income or expense in the period incurred. The allowed alternative is to include the difference in the carrying value of the link up asset. Under the ICAIs standards, revised in 1994 and 2000, exchange rate differences are accounted for in the carrying value of the asset only for fixed assets.For all other accounts, differences are recognized as income or expense in the period incurred. For foreign entities not integral to operations, the IAS prescribe accounting for all assets and liabilities at the cloture rate. Assuming foreign branches outside of India to be non-integral, non-monetary items are accounted for at the rate prevalent on the date of transaction under Indias accounting standards. Clearly, the issue of accounting for changes in foreign exchange rates is in a state of flux in India, and a hotly debated item, as the rupee continues to strengthen.It has moved upwards relative to the dollar by 15% since 2004 with most of it occurring in the period 20062007. 4. 11. IAS 22 (superseded by IFRS 3) Business combinations The Companies Act of India had no requirement for consolidation until April 2001. In turn, there was no requirement to write off goodwill, or to use the equity method. Subsidiaries normally accounted for in consolidation were accounted for as investments. AS 21 requires a parent company preparing financial statements to provide financial information about the economic activities, resources, obligations and results of its group.It is not mandatory to prepare consolidated financial statements. However, the Securities Exchange Board requires listed companies to prepare consolidated statements as of 2002. 4. 12. IAS 24 Related party disclosure Although there was no prescr ibed accounting treatment by the ICAI or the Companies Act concerning connect party transactions or disclosures, the Act did specifically define related parties. AS 18, issued in 2000, is now broadly in line with IAS 24. 4. 13. IAS 31 monetary reporting of interests in joint ventures Accounting standards issued by ICAI had no standard concerning the different forms of joint ventures until 2002. pegly controlled entities were accounted for as long term investments. AS 27, reporting of interests in Joint Ventures lays out principles and procedures for accounting for Joint Ventures for both venture partners and investors. The standards still differ from IAS. In accounting for conjointly controlled entities, IAS 31 prescribes proportionate consolidation as the benchmark and the equity method as the allowed alternative. The above analysis indicates that there are many sarcastic issues that need to be dealt with by Indias standard setting body, the ICAI.An of import friendship in an alyzing the differences between IAS and standards issued in India is the absence of mandatory requirements for consolidated financial statements. Fischer, Taylor, and Leer (1993) suggest that the presentation of consolidated financial statements is of great vastness to the parent companys stockholders. Firms in India account for their subsidiaries as investments under the cost method of accounting for investments. This is perhaps a grave misinterpretation of the parent companys economic substance.The use of the cost method in accounting for subsidiaries in contrast to consolidation accounting represents the legal form of the companies, but does not represent the more important economic substance. In addition, the lack of consolidated financial statements in a developing country such as India packs the work up towards comparability of multinational financial statements. Many large Indian companies have numerous subsidiary companies whose selected financial figures are presented se parately in the one-year reports as opposed to being consolidated with the parent companies.This makes it increasingly difficult for potential investors and financial analysts worldwide to make knowledgeable decisions. As recent as March 2007, the Press sureness of India quoted the ICAI president, Sunil H. Talati, as saying that Indian accountants face problems in accounting for mergers and acquisitions. However, as Indian companies opt to get listed on exchanges at home, the Securities Exchange Board of India requires consolidated financial statements. 5. Conclusions In recent years, India, one of the fastest growing economies has captured the attention of investors worldwide.Since the early nineties, pursual the opening up of the economy with more liberal policies, technical and financial collaborations have increased multifold and so has foreign direct investment and portfolio investment (Anderson & Lanen, 1999). Nevertheless, certain archaic accounting practices still continu e. In their study on managerial accounting practices in India, Anderson and Lanen, 1999 S. W. Anderson and W. N. Lanen, Economic transition, strategy and the evolution of management accounting practices The case of India, Accounting, Organizations and Society 24 (1999), pp. 379412.Abstract PDF (297 K) captivate come in in Scopus Cited By in Scopus (21)Anderson and Lanen (1999) report little involvement by investors and owners in the development of strategy which still is to a large extent controlled by the government. The Companys Act restricts takeovers and blocks transactions that the government may view as prejudicial to the interests of the company or the public. It is not surprising therefore to visualize that financial accounting practices mirror this policy by the lack of consolidation of parent and subsidiary financial statements, a major divergence from the IAS.Fischer et al. (1993) note that stockholders are interested in the total financial position of the corporati on, disregarding of how diversified the operations have become (p. 64). They also report that unconsolidated subsidiaries are very rare in businesses today. The push for changes in accounting practices appears to come from the equity markets. Change has come more rapidly to the equity markets because reform in these markets have not aroused as very much political opposition (Echeverri-Gent, 2001).However the banking and business sectors are still steeped in tradition and political agendas of national and state parties affect their evolution. Besides, it is also important to consider the strong cultural element present in India. This could impede the process somewhat even though over the last few years many Indian standards have sought conformance with the International Accounting Standards (Narayanaswamy, 1992). Nevertheless, in March 2007, the Press send of India reported that India had adopted only 21 IAS in comparison to the 47 IAS adopted by several developed countries. Press Trust of India, 2007). In July 2007, the council of the ICAI announced a plan to converge the Indian Accounting Standards with the International Financial Reporting Standards (formerly IAS). However, it retained the stipulation that any modifications will still have to reflect Indian conditions. (Deloitte, 2007). The new standards will be effective on or after April 1, 2011. Our study of the Indian accounting system in conjunction with the International Accounting Standards indicates the importance of developing comparable financial statements in emerging economies with those of the developed world.In India, the political and social impediments need to be tackled in order to improve comparability for financial statement users. On the Business Competitiveness Index, India is ranked 48th among industrial countries. By conform to international standards, India would be taking the necessary steps to improve its competitory position in world markets. References Anderson and Lanen, 19 99 S. W. Anderson and W. N. Lanen, Economic transition, strategy and the evolution of management accounting practices The case of India, Accounting, Organizations and Society 24 (1999), pp. 79412. Abstract PDF (297 K) View Record in Scopus Cited By in Scopus (21) Coopers and Lybrand (International), 1993 Coopers and Lybrand (International), International accounting summaries, hind end Wiley & Sons, Inc. , New York, NY (1993). Deloitte, 2007 Deloitte, Accounting standards updates by jurisdiction (2007). Doupnik and Salter, 1995 Timothy S. Doupnik and Stephen B. Salter, External environment, culture, and accounting practice A preliminary test of a general deterrent example of international accounting development, The International Journal of Accounting 30 (1995), pp. 189207.Echeverri-Gent, 2001, distinguished John Echeverri-Gent, Political economy of Indias fiscal and financial reform, Center for Research on Economic Development and Policy Reform (2001, August). Epstein and Mirz a, 1997 Barry J. Epstein and Abbas Ali Mirza, IAS 97 Interpretation and application of International Accounting Standards, John Wiley & Sons, Inc. , New York, NY (1997). Fechner and Kilgore, 1994 Harry H. E. Fechner and Alan Kilgore, The influence of cultural factors on accounting practice, The International Journal of Accounting 29 (1994), pp. 265277. Fischer et al. , 1993 Paul M.Fischer, William J. Taylor and J. Arthur Leer, Advanced accounting (5th Edition), College Division, South-Western Publishing Co. , Cincinnati, OH (1993). Gernon et al. , 1990 Helen Gernon, S. E. C. Purvis and Micheal A. Diamond, An analysis of the implications of the IASCs Comparability Project, school day of Accounting, University of Southern California SEC and Financial Reporting Institute (1990). Graham and Wang, 1995 Roger C. Graham and Chin-hsin Coco Wang, Taiwan and International Accounting Standards A comparison, The International Journal of Accounting 30 (1995), pp. 49167. Larson and Kenny, 1995, Summer Robert K. Larson and Sara York Kenny, An empirical analysis of international accounting standards, equity markets, and economic growth in developing countries, Journal of International Financial Management and Accounting 6 (1995, Summer), pp. one hundred thirty157. Full Text via CrossRef Larson and Kenny, 1996 Robert K. Larson and Sara York Kenny, Accounting standard-setting strategies and theories of economic development Implications for the adoption of international accounting standards, Advances in International Accounting 9 (1996), pp. 120.Marston, 1986 Claire Marston, Financial reporting in India, Croom Helm, London, UK (1986). Narayanaswamy, 1992 R. Narayanaswamy, Accounting for leases by lessees in India Some register of economic impact, The International Journal of Accounting 27 (1992), pp. 255261. Press Trust of India, 2007 Press Trust of India, ICAI sets up taskforce on accounting standards, PTI-The Press Trust of India (2007). Riahi-Belkaoui, 1994 Ahmed Riahi-Bel kaoui, Accounting in the developing countries, Quorum Books, Westport, CT (1994). Riahi-Belkaoui, 1995 Ahmed Riahi-Belkaoui, The cultural shaping of accounting, Quorum Books, Westport, CT (1995).Shankaraiah and Rao Shankaraiah, K. , & Rao, D. N. Corporate governance and accounting standards in India. An empirical study on practices. Working Paper. (February 10, 2004). Available at SSRN http//ssm. com/abstract=501242. The Tata Iron and Steel Company Limited, 1996 The Tata Iron and Steel Company Limited, Eighty-Ninth Annual Report, 19956 (1996) Tata Steel, Fort Mumbai, INDIA. Wyatt, 1992, Spring Arthur R. Wyatt, An era of harmonization, Journal of International Financial Management and Accounting 4 (1992, Spring), pp. 6368. Full Text via CrossRef

Hr Profession Map

Developing Yourself As An Effective Human Resources practician I confirm that the work I issued for unit 4DEP (HR) is my own. Signed take c be Print Name ACTIVITY 1 THE CIPD HR PROFESSION present The CIPD HR Profession subprogram sets out what HR Profession consider to know, do and comport at all dresss in their c beers. The Map covers 10 original areas, 8 behaviours and 4 bents of competencies and transitions, from caboodle 1 for the start of HR career through to band for the most senior leaders. It has been designed to be relevant and applicable to HR headmasters operating anywhere in the world, in all sectors and in organisations of all shapes and sizes. PROFESSIONAL AREAS The 10 HR Professional areas describe the responsibilities and knowledge, for severally area of the HR Profession at 4 bands of professed(prenominal) capabilities. Two of which are classed as the Core Professional Areas, Insights, strategy and Solutions and Leading HR which are the main focal point of the profession. They are applicable to all HR professionals, regardless of role, location or stage of career whether inside organisations or working with them.Insights, Strategy and Solution This professional area underpins the direction of the profession as an applied affair discipline, with a people and organisation specialism. This area to a fault allows HR Profession, to develop unjust insights and deliver situational HR solutions that stick. In the HR Profession Map Band 1 and 2 is expected to consider the bigger picture at all beats, observing connections, and draw conclusions about the impact of events and activities on each other. Leading HR Leading HR Professionals are bustling and insight-led leaders who are owning, haping and driving. They develop across 3 main areas of lead Personal lead, leading others and leading issues. In the HR Profession Map Band 3 and 4 is expected to seek feedback, and coaching to continually learn and develop as a professional. Build ow n leadership through effective use of CPD activities. The other eight specialist areas which are Organisation Design, Organisation Development, Resourcing and Talent Planning, Learning and Talent Development, Performance and Reward, Employee Engagement, Employee dealings and Service Delivery and Information.They are specialist areas which identifies the activities and knowledge that is needed to provide Specialist HR Support. Bands The 4 bands of professional competences define, the contribution that HR Professionals stir at every stage of their career. It helps to give a clear tract and focal point to all HR Professionals development planning and activities. At Band 1 the role would be an HR Practitioner, whose role would be to focus on client support and immediate and ongoing issues, spend time providing culture, managing information, and serve the client with facts and information and peace of mind.They must also be efficient, conciliatory and give client satisfaction. Ban d 2 the role would an HR Advisor who advises and/or manages HR related issues and relating to individual or a team. Has a clear understanding of the evaluation process and solutions available. Serves the client with flexible options and recommendations and enable repeated business. Band 3 is a HR advisor whose focus and activity would be to lead a professional area, playacting as a consultant or partner, addresses key HR challenges at an shapingal level for the medium and long-term.Spend time understanding the functional business realities and provide insights and linkages and serve the client with ideas, insights, challenges and solutions and is a trusted partner who is sit down at the leadership table. BAND 4 is a Leading HR whose activity would be Leading and managing a professional area(s) and/or the organization and responsible for developing and delivering organisational and HR Strategy. Spend time understanding the organaisation and sedulousness realities.Serve the clien t with safe Haven for challenging discussions and lead team colleagues. Behaviours at that place are 8 behaviours that explain how a HR Professional take to carry out their activities. Each behaviour is explained at 4 bands of professional capabilities they are, curious, Decisive Thinker, Skilled Influence, Personally Credible, Collaborative, Driver to Deliver, Courage to Challenge and social function Model. Each behaviour has a series of contra- indicators which illustrates the negative manifestations of the behaviour.SERVICE DELIVERY AND data In this professional area the HR Professional ensures that the delivery of HR service and information to leaders, managers and staff at heart the organization is accurate, efficient, timely and cost-effective and that human resource data is managed professionally. The following activities and knowledge specified within the professional area at Band 1 identify those I consider most essential to my HR Role ActivitiesService Delivery Models and death penalty Service Management and Metrics Business Process Redesign and sustained Improvement HR Technology What you need to doAt Band 1 HR Professionals would need to strive to maintain a continuous and excellent service, tense to deliver excellent customer service care and have self-coloured customer service ethos. Also provide information to all members of the organization via email, telephone etc. , collecting processing data and delivering management information in an efficient, effective and timely manner, and comply with organizational procedures and legislative requirements. KnowledgeService purity Operations Management HR Technology What You Need To Know How to pull off and escalate complaints. The cost restraints and service delivery targets of the organization. How to use HRIS to produce data and metrics. In my role as a HR Specialist on a day to basis I provide customer service, advice and deliver information to all members of the organization regardless of their position within the organization.I also maintain and update personnel office records both manual and electronically. Handle stand and financial matters for over 70 personnel, rectified any inconsistencies and ensured all personnel are paid accurately and on time. On a monthly basis I accumulate authentic itemized Monthly Personnel Returns on Microsoft Excel spreadsheet. Supply Head of department with a modernized world power to schedule and deploy up to 70 personnel, essential at a time of increasing operational commitments.

Discuss the economic, political and social impacts of international trade in the 21st century

Globalisation has emerged over the ago 30 years bringing rude(a) dimensions to the traditional economic opinion around world(prenominal) mountain. Discuss the economic, political and social furbish ups of international muckle in the 21st century. Globalisation is the trend towards markets crossing international and regional borders, lessening the differences in customers wants1. The parade of globalisation, assisted by the technological variation in communications and computers, is radically altering the shape of world markets, as well as the character of business and everyday life.The economic, political, and social entailment of international trade has been essential for the growth of globalisation. The restrictions to international trade would demarcation line the nations to the function and goods produced within its territories, and they would lose out on the valuable tax income from the global trade. Globalisation has not only changed the substance we live it has amend competency in flow trade and finance, modernised technology for consumers and change magnitude wealth. planetary trade is the exchange of goods and services between countries.This type of trade gives rise to a world thrift, in which prices, or supply and demand, have-to doe with and are affected by global events. Economically it behind be extremely complicated especially the fact that all countries whether they like it or not, are related to each other in one way or another. For example, an attach in the price of one commodity such(prenominal)(prenominal) as oil creates a long and complex chain of events which makes digest of all the causal relationships virtually impossible. The risk of the exchange rates throw out also be a impact between countries due to the assorted currencies around the world.During recession, countries suffer local pressure to change laws governing International trade to protect the local industries. The most painful and memorable of such incid ent is the Great Depression. However, nations with strong international trade have had the cause to control the world economy and this has allowed them to reduce poverty. Trade has also allowed countries to increase in profits and sales which have allowed businesses to expand internationally. Political impacts of international trade are not taken lightly as on that point may be many impacts which may affect the trade of goods and services between the countries.The risk of non- renewal of import and exports licenses can affect the consumer and supplier, this is because if a license is not renewed jobs leave be lost and consumers will be dissapointed as their good or service is no long-dated being offered to them. The risk of war is also dangerous as it can leave the untaught in harm and have a broad impact as businesses will no longer want to picture their goods and services to the country at war. If war is declared between to countries this impacts the economy greatly.Through diversifying cultrally and socially a nation becomes more open and lovable to tourists. It allows for major growth and change as well as initiating contact with other countries. Therefore, if more tourists are willing to come to a country it further increases economic growth. International trade may also impact the way individuals behave towards each other, as new customs from abroad are learned and adapted.According to the Australian Department of Foreign personal business and Trade, the growth in exporting and companies becoming global has created over 250,000 new jobs. Conclusively, international trade in goods, services and finance has been increasing at an exponential rate which is giving consumers a wider choice of products and services to exact from. Globalisation has not only changed the way we live it has improved efficiency in flow trade and finance, modernised technology for consumers and increased wealth. The process of globalisation, assisted by the technological revolution in communications and computers, is radically altering the shape of world markets, as well as the nature of business and everyday life.

Twin Studies

This essay discusses collimate studies with phonationicular emphasis on the role of communicables on intuition and personality characteristics. There has been an ongoing debate whether intelligence and personality is base on genetic predisposition or not and basing from existing literature, couple on studies show of import evidence that genes do play a signifi hatfult part. Separated Twins Twin studies have been beneficial and informative regarding the mentioned debate. very(a) match become a good medium to learn from as they are 100% genetically the corresponding. In a situation where the twins are separated and reared apart, what happens?In a work written by Lawrence Wright, he relates the story of female resembling twins that grew apart and was reunited. He said that since they are genetically the same, one could evaluate the environmental effectuate on the twins personalities, their behavior, their health, their intelligence (1997). In this particular demand, the tw ins, Amy and Beth, were brought to two separate homes afterwards birth. Amy was placed in a family where she was seen as a problem and was do by like an outsider. Amys mother was physically unfit and suffered from low self esteem.In contrast, Beth was treated well in the family she was adopted in and her mother did everything she can to make Beth a real part of the family. The results showed that during childhood, both child manifested same habits as thumb-sucking, nail-biting, blanket-clenching, and bed-wetting. (1997) Moreover, they were both afraid of being left alone. Both had schooling problems and problems among friends and schoolmates. Though Amy had a good mother, her psychological tests show she had a thirst for maternal mintion, which as maintained by Wright was eerily the same as her identical sisters (1997).Apparently, basing from the results of the study, despite growing up in different conditions, Amy and Beth were like pathologically (Wright 1997). In addition t o this, Wright mentions that Matters that instinctively seem to be a reflection of ones personal experience, such as political orientation or the degree of religious commitment, have been shown by various twin studies to be partly under genetic control (1997). This demonstrates how significant a part genetics play alongside environment.On the basis of this study, Wright believes that despite external factors, genetics still rule and determine a persons traits. consequence Despite the significance of twin studies, especially like in the field of Amy and Beth, it appears that much of what a person becomes may be considerably attributed to genetic factors. However, as Wright himself says, this matter has been debated on for centuries. On regards intelligence, it still cannot be realised as there are variations among IQ results of both fraternal and identical twins.According to Medical News Today, there are indeed hereditary factors that affect the size of the brain. However, the mec hanisms by which interaction between genes and environment occur passim life as well as dynamics of brain grammatical construction and its association with brain functioning still remain unknown (2007). This suggests that only studies regarding the matter is necessary to arrive at a conclusion. Twin studies give continue to be useful in further discoveries on the study of genetics and its relationship with human intelligence and personality development.

Implementing a Flexible Work Schedule

Flexible rub down memorials provide employees elections regarding their wagering records for model plump defecateweek (Monday-Friday). These creams include field of studying from home (on occasion) to fixing a compacted heart of hours within the black market week, limiting the amount of days in which the employee has to diminish into the office. Flexible gain historys be usually implemented with the intention of allowing employers the prospect to have a well-balanced lifestyle between home and construct. The main(a) or most popular formulate option chosen is flex- cartridge clip (Russell H. OConnell, 2009).Flex- judgment of conviction allows employees to bring off there hours within the limits of management. A nonher option is a compressed pasture week which means that you have gained your 40 hours in less than the standard 5 days. An option that is becoming popular for industries that are technology focus if call job-sharing. Job-sharing allows employee s to divide the deform load between two employees, which gives to each one employee the flexibility of pretending virtually or from different berths of the uncouth (Russell H. OConnell, 2009). And then there is telecommuting, means that employees piece of ass complete their work time obligations from the lei real of their homes or a preferred location.The pursuance Chart provides is a brief description of the tractile work optionsA work roll that condenses one or more(prenominal) standard workweeks into fewer, longer days.A work schedule with variable starting and ending times, within limits set by ones supervisor/manager. Employees still work the same number of scheduled hours as they would under a conventional arrangement.An arrangement in which two or more part-time (or occasional) employees share the responsibilities of one full-time job at a pro-rated salary.A work schedule that is less than full-time notwithstanding is at least half of the regularly scheduled ful l time workweek.A block of time off while retaining ones job. These leaves whitethorn be paid or unpaid.A work arrangement in which employees regularly work at home or at an alternative work-site during part or all of a work scheduleOne presumption that is made by many employers is that allowing or implementing a negotiable work schedule allows to retain your employees and maintain a more consistent work force (Pruchno, 2000). According to more or less, implementing and put to death a on the table work schedule locoweed reduce employee turnover, and save companies money in the long work out on expenses associated with replacing valuable employees. Pruchno states that the cost associated with employee turnover give the axe furnish up to 130% of the departing employees salary (Pruchno, 2000). So for many, implementing flexible work schedules faeces be seen as a cost saving strategy.Another service for implementing a flexible work schedule endure be thrifty by having a mor e relaxed, engaged, committed and productive employee (Families, 2012). Suzan Lewis wrote in her on implementing a flexible work schedule that, both flex-time and compressed workweeks had positivistic effects on productivity/or self-rated performance, job satisfaction, and satisfaction with work schedules but that absenteeism was affected by ex-time only. (Lewis, 2003). It later goes on to suggest that absenteeism had a relationship with the flexibility of the arrangement, where for example the different effects on absenteeism are because compressed work weeks are less flexible and therefore do not allow employees to, for example, draw off up time lost done illness or other reasons, as flex-time does, which results theoretically in a higher level of absenteeism (Lewis, 2003).The intended impacts and benefits for implementing a flexible work schedule is to balance work and lifestyle issues while increasing job productivity, trueness and employee satisfaction. One study concluded that employees operating under a flexible work scheduled usually demonstrate improved work and lifestyle balances immediately (Russell H. OConnell, 2009). In fact the study states that employees operating under flex-time work schedules displayed a more improved level of work and life balances than their counterparts utilizing traditional fixed-hour schedules. (Russell H. OConnell, 2009).Now, although the impacts of a flexible work schedules whitethorn appear to have originally positive results, an incorrect execution of this platform can cause problems. overall productivity, depending on the industry, could potentially drop if the wrong program is implemented. Issues related to fairness, can also come into place if the program is not implemented and put to death accurately. Most employers and employees agree that the proper implementation of a flexible work schedule can help to maintain a work-life balance and can increase job satisfaction and productivity.However, the potentia l problems to implementing such a program are usually seen when too many options are made purchasable or when the wrong option is made available without proper inquiry and jut outning. Companies should know and have a clear understanding of the impacts of each flexible work option. Along with this knowledge, companies should understand the impacts of specific flexible work options on their operations. Flex-time and telecommuting may not work as well in a manufacturing environment as oppose to an office setting. And Job-sharing may not work well for an engineering fraternity, as it works for an IT help desk company. So, companies leave need to dispatch sure that they have engaged themselves in a comprehensive externalizening process to determine the right fit.So, the success of implementing and executing flexible work schedule ideally hinges on the actual option that is implemented. Which means that the success is determined by the type of industry that it is implanted in (of fice work, operation, manufacturing, etc.) the working environment or culture and the carefully instituted flexibility of the work option itself? Also, as was highlighted earlier, the degree of flexibility is relatively substantial as well as it relates to how effective the flexible option can be.An option that is too flexible can yield minimal results in the intended goal of cost savings and employee work and lifestyle improvements. However, an option that that may be escorted to be not flexible enough may risks not to be seen by employees as being beneficial and may not yield to intended cost savings. In saying this, to increase effectiveness in this respect, a medium needs to be strand where the arrangement is flexible yet not to an extent that hinders the intended goals and outcomes.The following outline provides some practical steps for planning, implementing and assessing a flexible work schedule (Families, 2012)What impact will flexible time or work location arrangements have on your service to clients?What are the benefits for employees and the organization?What are the potential problems? Can you deal with them?What time, effort and money it will motor to make flexible arrangements successful?Is training required to be sure managers and co-workers have the knowledge and skillsAsk employees, possibly in a survey, what they emergencyConsult widely with other organizations, clients, board members, volunteers, staffReview options, consider strengths and weaknesses of these optionsDevelop written policies and procedures for implementation and monitoringCommunicate to board, clients, staff, volunteers, public black market a pilot for a trial period and evaluate it ingest staff report back on the pilot to provide their feedback recompense and/or extend the program if necessaryAfter the pilot has run, make any modifications or changes to the programInform staff of new processes and procedures move on to evaluate the program on a regular basis crave fee dback from participants, make changes and adapt plan as requiredThis outline provides some basic steps for getting started, putting/implementing an effective plan of action, and evaluating the plan for improvements and adjustments. It also touches on some required elements that will help the company to yield the intended goals and to obtain buy-in from employees and staff. Implementing a flexible work schedule can be very costly and time consuming in the beginning however, putting together a realistic and comprehensive plan will go a long ways toward assuring effectiveness.Specifically, the scoop out way to ensure an effective implantation and execution of a flexible work schedule is to make sure that the applied flexible work option suits the specific industry. For example, flex-time can be a relatively useless arrangement unless it is chosen for the right job. Allowing a school teacher a day off once a week is probably not a good idea if his/her class schedules require that they be in attendance from Monday-Friday. Whereas a data-analyst who works for a software company, could potentially work 10 hours a day for four days a week and can be just as or even more effective than if he/she work eight hours a day quin days a week. So, for companies to truly maximize effectiveness in the implementation of a flexible work schedule, the right flexible work option needs to be applied.In conclusion the some of the benefits of implementing flexible work schedule are cost saving, low employee absenteeism, increased employee productivity and work performance. However, these benefits are only yielded if the company implements and executes the right flexible work option. In this report, detailed steps and recommendations have been provided for how companies can successfully implement a flexible work Schedule.To ensure that the intended goals are achieved it is important that companies make sure that they have identified and implemented the right flexible work option(s). They must also make sure that the implementation process is inclusive whereas employees and executive staff members are included, trained and provided an opportunity to provide arousal in the implementation process. Finally, implementing a flexible work schedule, if done correctly, can do wonders for employee morale and commitment.

Hrm Practice in Banking Sector

pic Faculty of Business BBA chopine A dissertation on military earthe election all(prenominal)wheresight Practices in b tramping Sector On s forbiddenheasterly stick peculiar(a) Submitted to Md. Ashraful Haq Chowdhury ASA University Bangladesh (ASAUB) Submitted By Mir Tasnuva Tanzin BBA (Major in HRM), Batch 2nd ID 073-12-0137 Date of Submission opulent 20, 2011 Submission shroud Dear Sir,With due adore I would resembling to in take a hop you that I shake successfully completed my Thesis Program from May 15, 2011 to August 15, 2011 at atomic fixoff 34 situate Limited and conducted the claim on kind-hearted Re get-go Management Practice in entrusting Sector A sheath Study on Southeast blaspheme Ltd. Thesis Program intentiont spirit as a bridge between the academic and the virtual(a) knowledge. I am very much fortunate that I got the chance to graze with approximately experienced and devoted professionals. As recommended my attain on is ground on the functional procedure of different desks and different departments of the brink.I tried my blue hat to drop meticulous private road for the grooming of this advertise. Any misfortunatecoming or flaw whitethorn arise. I go a room welcome both(prenominal) clarification and suggestion regarding this recognize out. Sincerely Yours, Mir Tasnuva Tanzin ID 073-12-0137 Batch 2nd Student of BBA ASA University Bangladesh August 20, 2011 Md. Ashraful Haq Chowdhury ASA University Bangladesh. name and address Letter of Transmittal Dear Sir, Here is the tale that fulfills the partial requirements of Thesis program, which is very helpful for a student to know the activities of an presidency. This kind of embrace likewise gives an st positiongic guideline to do explore in the prox.thank you very much for your kind supervision and cooperation without which I could non be able to complete this field. I take every(prenominal) opportunity to stockpile my gratitude to you. T hanking you Mir Tasnuva Tanzin ID 073-12-0137 Batch 2nd Student of BBA ASA University Bangladesh acknowledgement All commendations go to al aneness-powerful Allah, the most merciful, most benevolent to man and his action. I would like to state my gratitude to Mr. M. A Mohit the Deputy Managing Director (DMD) of Southeast commit Ltd. for giving an opportunity to work on the altitudeic as student. I am greatly indebted to Mr. Md.Hamidul Islam Mia HOB of Dhanmondi Br. And HRD of Southeast chamfer Ltd. for providing excellent working purlieu and his full epoch attention in preparing this answer for. I extend my give thanks to Mr. Saidul Islam, Mr. Reza, and Mr. Humayon of Southeast Bank Ltd. Dhanmondi Br. Who m some a nonher(prenominal) their well hearted cooperation and valuable while in completing this report I am withal grateful to distributively(prenominal) the employees of Southeast Bank Ltd. Of Dahnmondi Branch as they helped me out in explaining the work practi ce and accompanied me through my research period. Fin tot whollyyy, my thanks to ASA University (ASAUB) place for sincere ooperation and tot completelyy the faculty members whose integrated effort make me capable of conducting this Thesis. close maker Summery This report is an effort to reflect a clear base astir(predicate) the Bunker-Customers Relationship, strategies, activities and per mastermindance of Southeast Bank Ltd. The researcher was as signaliseed it in the Dhanmondi Branch of Southeast Bank Limited (SEBL) as an intern. The researcher presents this report on the basis of the knowledge and experience gained during the research period. The research report is a partial fulfillment of BBA program.In the report on HRM practices in trusting do important A case study on Southeast Bank Ltd. the all overall role of HR double-deckers in a strand and how they execute their role is presented. Human alternative motorbuss discharge an identifiable set of activities tha t actuate and influence the plenty who work in an formation. These activities accept HR grooming, usance digest, enlisting, weft, placement, formulation and growth, designing writ of execution assessment and compensation placements, and labor sex act Since, the HR department plays a support role at heart the arranging it interacts with a variety of constituencies. TABLE OF CONTENTS Page Prefatory split Title Fly Title Page Later of Submission Acknowledgement Executive Summery Table of Content Report proper Chapter One- entranceway 1. 1 Background of the study 1. 2 accusatory of the report 1. methodological compendium of the report 1. 4 Scope of the report 1. 5 Limitation of the report Chapter Tow Overview 2. 1 Historical Background of Southeast Bank Ltd. 2. 2 Special Features of the Bank 2. progress of Directors 2. 4 Management of the Bank 2. 5 Capital Structure of the Bank 2. 6 Deposits Status of the Bank 2. 7 Profit and operational results 2. 8 Selection bring 2. Mission, Vision and Objective of SEBL Chapter Three Understanding the HRM 3. 1 familiar sen epochnt of HRM 3. 2 Objectives of HRM 3. 3 Basic Principles of HRM 3. Approach of HRM 3. 5 Philosophy of HRM 3. 6 Standard electronic organ gram of HR Department in a sizeable establishment 3. 7 Responsibilities of HR Department in a jumbo system Chapter Four HR visualisening & foretelling 4. Concept of HR preparation & forecasting 4. 2 move of HR runing 4. 3 HR supply and the strategic provision fulfill 4. 4 Forecasting HR selects 4. 5 Forecasting the Internal HR Supply 4. Forecasting the orthogonal HR Supply Chapter five-spot Recruiting & Selection 5. 1 Concept of Recruiting & Selection 5. 2 The Recruiting and Selection Process 5. 3 byplay digest 5. soulfulnessal credit line digest Methods 5. 5 travel in commercial enterprise digest 5. 6 A Comparative interchan ge between theorise Analysis, Job Description, Job Specification, and Job Evaluations. 5. 7 Sources of equipment 5. 6 Internal sources 5. 7 External sources 5. 8 Methods of be restoredment 5. Advantages & disadvantages of interior recruitment 5. 10 Advantage & harm of out-of-door recruiting Chapter Six dressing & Development 6. 1 Concept of homework & Development 6. 2 Need and outstanding of develop 6. Objectives of grooming 6. 4 Guidelines and Framework to Design a Training and Development Plan 6. 5 Training method Chapter Seven remuneration & Employee get aheads 7. 1 Concept of earnings & Employee Benefits 7. Comp singlents of the compensation system 7. 3 leases vs. Salary 7. 4 Establishing soften off rates 7. 5 Importance of Job Evaluation 7. 6 Types of Employee Benefits 7. Employees Benefit Programs initiated by HRM 7. 8. Employee Ser evils 7. 9 Incentive Plans Chapter Eight Employee Relationship 8. 1 The Meaning of Ethics 8. 2 schemeal refinement 8. Employee Discipline and silence 8. 4 Types of disciplinal Actions 8. 5 disciplinal Proceeding 8. 6 Disciplinary Appeals Processes 8. 7 Disciplines without Punishment 8. Managing spillages 8. 9 Grounds for Dismissal Chapter Nine closedown Bibliography Chapter 1 Introduction 1. 1 Background of the study thither is no doubt that the cosmosness of work is rapidly changing.As part of an establishment then, HRM mustiness(prenominal) be prep bed to deal with the effects of the changing world of work. For them, this means take ining the implications of globalization, technology changes, custody diversity, changing skill requirements, ceaseless 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 imagings with strategic brass section al object lens lenss. more than(prenominal) and more, organizations atomic number 18 downstairs tremendous competitive pressure worldwide. HR managers must find ways to develop stiff programs to meet this challenge.another(prenominal) distinguished aspect of HRM is the need to construe cost effectiveness of programs and policies through the outstrip utilization of human resources. 1. 2 Objective of the report The broad bearing of the report is to co-ordinate classroom knowledge with practical situation. Specific objectives of the report ar ? To fulfill the course requirement of MBA program ? To acquire practical knowledge approximately HRM practices in entrusting sector ? To have practical vulnerability in tilling surroundings that get out help a lot of to understand the prospective work life ? To analyze HRM practices in Southeast Bank Limited with classroom (theoretical) knowledge ?To recommend for improvement of active HR policy of Southeast Bank Limited. 1. 3 methodology of the report Methodology implys direct observation, face-to-face discussion with respective executive of the commit, study of files, circulars and so forth and practical work. In preparing this report, only secondary info have been utilize. The necessitate data have been collected from chase sources- ? Employees armed service book of the bank ? Annual report of the bank ? Different publications regarding banking function ? Reference books from subroutine library of Stamford University Bangladesh. 1. 4 Scope of the report This report covers only human resource practices is Southeast Bank Limited.It foc parts on overview of the bank including a comparative study about threadb be theoretical aspect of HRM and the existing banking practices. The report also investigates the perceptions of employees of the bank toward employee diverge a services and development policy. 1. 5 Limitation of the report In malignity of hearted cooperation from the bank officials, I faced some limitation in preparation the report. The major limitations atomic number 18 as follows Learning of overall HRM practices in banking sector within just threesome months was really tough. Another limitation of this report is bank banks policy of not disclosing some data and information for obvious reason, which could be very much useful. Chapter 2 An Overview of Southeast Bank Ltd. 2. 1 Historical Background of Southeast Bank Ltd.Southeast Bank Limited is a scheduled Bank under unavowed sector realized under the ambit of bank Comp any(prenominal) Act, 1991 and coordinated as a Public Limited Company under Companies Act, 1994 on March 12, 1995. The Bank started commercial banking operations effective from May 25, 1995. During this short span of time the Bank had been successful to fleck itself as a progressive and dynamic pecuniary institution in the rural. The Bank had been wide acclaimed by the problem community, from small entrepreneur to expectant traders and industrial conglomerates, including the top rated corporate borrowers for forward-looking business outlook and innovative financing solutions. thus within this very short period of time it has been able to get a image for itself and has earned signifi do-nothingt reputation in the countrys banking sector as a Bank with vision. It has been growing high-velocity as sensation of the leaders of the peeled generation banks in the cliquish sector in respect of business and profitability as it is lucid from the financial statements for the last 4 eld. The Company Philosophy A Bank with Vision has been preciously the essence of the legend of banks success. 2. 2 Special Features of the Bank a) It has been performing conventional commercial banking activity and pains to introduce Islamic Banking functions. ) It is the pioneer in introducing and launching different client friendly cling schemes to tap the nest egg of the peck for channeling the same to the originative sectors of the economy. c) For uplifting the standard of living of the limited income host of the population the Bank has introduced Consumer Credit Schemes by providing financial tending in the form of contribute to the consumers for procuring household durables, which have had encouraging responses. d) The Bank is committed to continuous research and development so as to keep pace with modern banking. e) The operations of the Bank ar fully computerized so as to ensure quick, touch off flawless and run to the customers. 2. 3 ProfileSoutheast Bank Limited was established in 1995 with a dream and a vision to f and so on a pioneer banking institution of the country and contribute signifi cleartly to the outgrowth of the national economy. The Bank was established by leading business somebodyalities and soaring industrialists of the country with stakes in unhomogeneous segments of the national economy. The incumbent chair person of the Bank is Mr. Alamgir Kabir, FCA, a profession al Chartered Accountant. Mr. M. A. Kashem a member of the Board and Mr. Yussuf Abdullah Ha exit were past Presidents of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI). Southeast Bank is run by a team of efficient professionals.They create and generate an environment of trust and straighten out that encourages and motivates everyone in the Bank to work together for achieving the objectives of the Bank. The culture of maintaining congenial work environment in the Bank has further enabled the faculty to benchmark themselves crack against centering expectations. A commitment to quality and virtuousness in service is the hallmark of their identity. 2. 4 Board of Directors In SEBL the visiting card of directors has been conceived as the sources of all power headed by its chairman. It is legislative body of the bank board plunder delegate its power and authority to professionals, but puke not delegate, relinquish or avoid their responsibilities.The board o f directors of the bank consists of 13 members who argon reputed business privateities and leading industrialists of the country. 2. 5 Management of the Bank The management team headed by the CEO, Shah Md. Nurul Alam, the President and Managing Director has to take full loanword of persuadeing out the guidelines, rules and regulations and directions tending(p) by the board from time to time and tin all the vital information to the BOD for their knowledge and effective purpose making. A graphical representation of the hierarchy of the bank is in point. 2. 6 Capital Structure of the Bank The Authorized Capital of the Bank dust unchanged at Tk. 500. 00 million.The Bank went public and floated sh atomic number 18s of Tk. 150 million in December of the earlier year which was fully subscribed, thereby raising the issued and paid-up Capital to Tk. 330 million. With the pace-up of paid up capital, the capital base of the Bank has become stronger. 2. 7 Deposits Status of the Bank T he Bank mobilized a contribute deposit of Tk. 38,258. 15 million as on December 31, 2005 as against Tk. 27, 930. 8 million as on December 31, 2004 showing an increase of 30%. The combination of competitive interest rates that offered sustained deposit raising efforts of the Bank and confidence reposed by customers in the Bank resulted in this growth of deposits.Steps ar being taken to further increase the deposit base continuously at a Reduced mediocre cost of currency. 2. 8 Profit and operational results The operating profit of the Bank increased to Tk. 665. 16 million in 2003 comp bed to Tk. 492. 56 million in 2002 understanding an appreciable increase which was due to prudent lending and best management of funds. The Bank participated in the primary and secondary stock markets and made consumeable capital gains during the year. Notwithstanding the tough and cutting edge combat prevailing in the market, the business of this Bank has expanded substantially compared to that of the previous year.This year the management team as well as the workforce is confidently poised to take on newer challenges with a view to pretend the ambitious level of performance in respect of accomplishment of the gibe business activities including attainment of higher profitability of the Bank. 2. 9 Selection Process Southeast Bank Ltd recruits employees on the basis of theme circulation & by online e-application on Southeast Bank Limiteds web site. At the e-application instalment candidates are de rigueur to drop their CV & on the rearation of Southeast Bank Limiteds nullity & precedence candidates are compulsory to follow their selection procedure as follows Step 1 Completed applicationThe application form is given in the online and completely fill applications are carried forward for the preliminary tryout (employment test). Step 2 Employment test The Human Resource department mails the admit card to the applicants who have completed the online application succes sfully via set up card. The questionnaire of the test is put together on mathematics, English and the respective hypothesise questions. It is unremarkably held on 100 marks. The employment test typically holds in any political sympathies major educational center. Such as t some(prenominal)lyers instruction college of Dhaka, and so ontera Step 3 Comprehensive interview The applicants passed in the employment create verbally test are called by the bank. They are mailed an invitation for the viva-voce for their post.The applicants have to bring their original educational certificates for producing the same sooner the interview committee. The certificates are tested here with the application form information. And if any disparity is found the applicant is not allowed confront the interview committee. The passed applicants are given qualified telephone circuit offer. For permanent phone line offer they have to pass ground interrogative sentence & aesculapian test stai rs. Step 4 Background examination The Human Resource Department scrutinizes the flat coat of the applicant and tries to find out all ins and outs of the respective applicant. The applicants are kept un cognise about the background enquiry source. Step 5 Medical testThe applicants are to go for a medical check-up to the authorized medical center Southeast Bank Ltd. Southeast Bank Limited does not carry the medical fees. It is to be carried by the applicant himself. The test report directly goes to the Human Resource Department and the applicants are not permitted to see it. Step 6 lasting hypothesise offer If the 6th, Background examination, and the 7th Medical test, steps are passed successfully, Human Resource Department of Southeast Bank Limited sends an day of the month as Probationary killicer letter. At the amalgamation day, the applicants are bound to sign up a Letter of Undertaking for five-spot years continuous service to the bank from the date of con blind drunkation. If he conks before completion of 5 years con substantialed service or during the probation period he allow for have t refund to the bank 50% of total pay and allowances draw to him 2. 9 MISSION, VISION AND OBJECTIVES OF SEBL Mission The mission of the bank is to become a highly competitive modern and transparent institution comparable to any of this kind at home and abroad. High quality financial run with state of the art technology. ? Fast customer service. ? Sustainable growth strategy. ? conform to ethical standards in business. ? Steady return on shareholders, equity. ? Innovative banking at a competitive price. ? Attract and retain quality human resource. shipment to Corporate Social Responsibility. Vision A Bank with Vision is the precept of Southeast Bank Limited. The vision is to be the most efficient financial in callediary in the country through reducing the enthronization and savings gap of the economy by savings mobilizations and encourage the pace of industrial ization. The low-spirited voyage to achieve that vision started in 1995, since the very inception of the Bank. The journey still continues and give never stop. SBL sets a high standard for itself and every achievement of the bank is a striving agent to reach a new height. Objectives Whether in treasury, consumer, or corporate banking, SBL is committed to result the best. conflict the entreat of discerning customers is not the sole objective. The Bank believes that to provide standard financial services is to deliver a quality that makes every deed a pleasurable experience. The bank also believes that Customer is always regenerate and in the core of everything. So providing them friendly and personalized service, tailor-made solutions for business inevitably, global reach in trade and commerce at the doorsteps and high yield on investments are the core objectives of the bank. But the bank also tries to do the best in conjunction with achieving the ultimate objective of a busi ness organization Wealth Maximization. Chapter 3Understanding the HRM 3. 1 General Concept of HRM HRM deals with the design of white-tie system in an organization to ensure effective and efficiency use of human talents to accomplish organizational goals. Human Resource Management (HRM) is to refer to the philosophy, policies, procedures and practices related to the management of people within an organization. Hr management functions through which manager recruit, select, train and develop organization members. HRM is the systematic throwning, development and control of network of interrelated appendagees affecting and involving all members of an organization. These shapees overwhelm- ? HR planning & forecasting Job & work design ? Staffing/ recruitment & selection ? Training & development ? Performance appraisal & review ? stipend & reward ? Employee protection & representation ? Organization & improvement 3. 2 Objectives of HRM The objective of HRM can be described as follo ws- ? 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 finish off unfair labor practices. ? To maintain a high morale & better human dealings inside the origination. ? To maintain organizational peace. ? To attract workmanlike people and retain them in the organization. To recognize and satisfy psyche needs. 3. 3 Basic Principles of HRM ? Treat people with respect and dignity ? Treat people as adults ? Deal with people as complete one-on-ones. ? Treat all employees with justice. ? Provide people with justice. ? Provide people with opportunities for growth and development. ? Make people feel that they are most valuable summation for the organization. ? Rewards should be earned, not given. ? Not to under gauge the voltages of people. ? Provide people with all relevant information. 3. 4 Approach of HRM Strategic approach People are the strategic asset of an or ganization. People have core competency, the basis of competitive advantage.Human resource approach People are human beings with a lot of potentials and noetic abilities. Commodity approach People are commodity. They are viewed as a cog of a machine. Proactive approach Anticipate challenge of problem before they arise. Preventive is better than curative. 3. 5 Philosophy of HRM 1) Labor is viewed as a technical factor of production. They are treated as a commodity and they can be bought and sold. They are hired and fired at will. It is consistent with theory X. 2) Labor is viewed as human factor with a lot of positive potentials, so they must be treated with respect and dignity. This is consistent with theory Y of McGregor. 3. Standard Organ gram of HR Department in a large organization In organizations large enough to have a HR or personnel department, the personal director and his or her staff will play a key role in the designing and monitoring of human resources system. Larger o rganizations are more likely to help design and implement HR system. A full-time specialist tends to emerge when organization have about one hundred employees. A standard structure of HR department in a large company of several thousand employees is shown down the stairs material body Structure of HR Department in a Large Organization 3. 7 Responsibilities of HR Department in a large organization Position Responsibilities VP , HR Executive committee, Organization planning, HR planning, Policy, Organization development AVP, recruitment & Employment Recruiting, Interviewing, Testing, Placement & Termination AVP, Compensation & Benefits Job abstract and valuation, vignettes, Performance appraisal, Compensation administration, Bonus, Profit sharing plans, Employee derives. AVP, Training & Development Orientation, Training, Management development, Career planning & Development. AVP, Employee Relation EEO relations, Contract compliance, Staff assistance programs, Employee cou nseling. Chapter 4 HR Planning & Forecasting 4. 1 Concept of HR planning & forecasting HR planning is the first step in the recruiting and selection attend. Human resource planning is the process of assessing the organizations human resources needs in light of organizational goals and making plans to ensure that a competent stable workforce is employed. Wendell French. Personnel planning is the process of decision making what positions the riotous will have to fill, and how to fill them. Gary Dessler. In the words of Colman Bruce (1997) HRP is the process of determine workforce requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization. According to the above definitions, HRP consists of the following elements ? Establishing and recognizing the future job requirement ? Identifying deficiency in terms of quantity Identifying deficiency in terms of quality& specification ? Identifying the sources of right type of man ? Developing the available manpower and ? Ensuring the effective utilization of workforce. 4. 2 steps of HR planning HR planning is a process involving hardly a(prenominal) spirit levels ? Integrate HR planning with corporate planning The first breaker point of HR planning is to integrate it with corporate planning. All manpower planning stems from business plans in relation to a corporate strategy. ? Forecasting immanent & external environment The second symbolise in HR planning is to forecast of assess the inherent and external environmental factors include government influences economic, geographic and competitive condition. Assessment of internal HR capabilities The next stage is the analysis of internal inventory of HR capabilities. Assessment of internal strengths and weakness as a part of HR planning requires the current job and employees capabilities are audited and organizational capabilities are inventoried. ? Predicting & Forecasting HR demand and supply The inform ation gathered from external environmental scanning and assessment of internal strengths and weaknesses is used to figure of forecast HR supply and demand in light of organizational objectives and strategies. ? To locate the required HR Once the demand for HR has been forecasted, then their availability must be identified.The fourth stage of HR planning is to locate the sources from where personnel required will be available. The source may be internal and external. ? Allocation of HR The lowest stage of HRP is concern with allocation of human resources within organization overtime. 4. 3 HR planning and the strategic planning process HR planning should be an integral part of a blind drunks strategic and HR planning process. The effective HR planning and strategic planning process is shown below flesh HR Planning Process 4. 4 Forecasting HR needs When a potent makes a plan for employment requirements, the firm usually needs to forecast personnel needs, the supply of inside and out-of-door candidates.Different techniques like trend analysis, ratio analysis, and scatter plot can be used to estimate staffing needs. ? Trend analysis Trend analysis means studying variation in the firms employment levels over last five years. ? The scatter plot A split plot shows graphically how to variables business activity and firms staffing levels are related. For example, a newly established bank, which has 20 branches, expects to expand to 50 branches over the next five years. The HR director wants to forecast the requirement of manpower. The director can collapse the relationship between size of another 5 well-reported banks (in terms of number of branches) and their existing manpower. Name of banks Size (number of branch. Existing manpower Prime bank 41 1024 Dhaka bank 29 688 NCC bank 41 deoxyguanosine monophosphate Exim bank 28 934 Southeast bank 38 765 If the bank cautiously draws in a line to minimize the distances between the line and each one of the plot ted points, the bank will be able to estimate the optimum number of staff needed for each bank size.Thus, for a 50 branches bank, the HR director would assume he needs close to 1100 staffs. ? Ratio Analysis A forecasting technique for determining future staff needs by using ratio between, for example, number of customers and employee needed. 4. 5 Forecasting the Internal HR Supply Once the demand for labor is predicted, it is necessary to forecast the supply of labor that the organization will already have available to meet the demand. The internal supply of labor consists of all the individuals currently employed by an organization. The internal supply of labor is discharged. To predict the future supply the organization needs to maintain amanagement inventory map and Human Resource Information System (HRIS). 4. Forecasting the External HR Supply The firms cant always get all the empliyees they need from their current staff and some time they just dont want to. So, forecasting th e availability of outside supply is extremely Copernican in human resource planning. Be make up of the need for continuous and adequate staffing, every enterprise appears on the quality and quantity of human resources external to it. Chapter 5 Recruiting & Selection 5. 1 Concept of Recruiting & Selection Recruiting is the process of discovering potential candidates for factual or anticipated organizational vacancies. It involves searching and sourcing for viable job candidates.Recruitment is the process of finding qualified people and encouraging them to apply for work with the firm. On the other hand, selection is the process of choosing among those who do apply. Once an effective recruitment program has supplied enough applicants pool the organization faces the assess of choosing the best ones for specific jobs. 5. 2 The Recruiting and Selection Process The recruitment process place the right people in the right positions at the right times- is one of the most critical tasks any organization faces. Throughout the recruitment process the organization attempts to sell itself to the more promising candidates that is, to convince them that the organization is a upright place to work.The standard recruitment process of a large organization is Fig The Recruiting Process Personnel selection is a process of measurement, decision-making and evaluation. The goal of personnel selection system is to bring into organization individuals who will perform well on the job. The standard selection process of large organization typically consist of eight steps Failed Failedpassed Failed passed Failedpassed passed Problems passed Unfit Fig The Selection Process 5. 3 Job Analysis A job analysis is a systematic exploration of the activities within a job. It is a technical procedure used to define the duties, responsibilities, and accountabilities of a job.This analysis involves the recognition and comment of what is happening on the jib accurately and precisely identi fying the required tasks, the knowledge, and the skills necessary for performing them, and the conditions under which they must be performed. 5. 4 Job Analysis Methods The canonical methods that HR manager can use to receive job elements and the essential knowledge, skills, and abilities for successful performance include the following 1) musing Method Observation method is a job analysis technique in which data are gathered by watching employees work. 2) various(prenominal) Interview Method Using the individual interview method, a term of job incumbents is selected and extensively interviewed.The results of these interviews are combined into a single job analysis. 3) Group Interview Method Meeting with a number of employees to together with determine what their jobs entail. 4) Questionnaire Method Under the questionnaire Method, workers are sent specifically designed questionnaire on which they check or rate items they perform on their job from a long list of possible task it ems. 5) Technical congregation Method A job analysis technique involves extensive stimulant from the employees supervisor. 6) Diary Method The diary method requires job incumbents to record their daily activities. 5. 5 Steps in job Analysis The steps involved in conducting the job analysis include Fig Steps in a job analysis 5. A Comparative Discussion between Job Analysis, Job Description, Job Specification, and Job Evaluations. Job Analysis The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. Job Description A job description is a pen statement of what the jobholder does, how it is done, under what condition it is done and wherefore it is done. It is a list of job duties, responsibilities- one product of a job analysis. ? Job Specification The job specification states the minimum acceptable expertnesss that the incumbents must possess to perform the job successfully. ? Job Evaluations Job evaluation specif ies the congenator appreciate of each job in the organization. 5. 7 Sources of equipmentThere are two sources of requirement internal and external. Deciding whether the position is to be filled internally or externally is often as early task in recruitment planning for a specific vacancy. Entry-level jobs must be filled externally, but for other positions, internal sources are used. Internal sources are as ? Hiring comparative and dependents of the existing employee ? By promotion and transfer of existing employees ? From employees on leave, long course deputation of loan from similar other organization. External sources are as ? New entrants as fresher from give lessons and colleges ? Educated unemployed due to lack of opportunities elsewhere Retired hands with experiences ? interrogative sentence hunting. 5. 8 Methods of recruitment There are two methods of recruitment this are ? Method for internal recruitment ? Job position Job position involves announcing job openings t o all current employees. The announcement carry information about the nature of the position and the qualifications needs and any employee who is interested may did no the job. ? Employee Referrals Another way to find applicants is through employee referrals by other departments. versed communications among managers can lead to the discovery that the best candidate for a job is already working in a different section of the firm. ? Skills InventoriesInformation about every employees skills, education, work history and other important factors is stored in a data base, which can then be used to identify employees with the attributes needed for a particular job. ? Method for external recruitment Finding qualified applicants from outside the organization is most vexed part of recruitment. Typically, the external recruitment process uses different methods ? ad Advertising is one of the most popular methods. The most useful advertisement is one that specifies the exact nature of the job , the qualifications required and the salary range. The advertising medium should be selected carefully, with the target reference in mind. ? Employment AgenciesThere are three types of employment agencies a) Public agencies b) Private employment agencies c) Management consulting firm. Educational institutions principally have placement offices to assist their graduates in finding work. Unfortunately, these kinds of agencies are not popular in our country. ? Campus recruitment Sending an employers representatives to college campuses to screen potential applicants and create an applicant pool from the recent graduate is called campus recruiting. It is an important source of management trainees, promotable candidates and professional and technical employees. ? Internship umteen college students get their jobs through college internship.Internship is important manpower source for the organization. Internship can be win-win situation for both students and employers. ? professed(pren ominal) Organization Many professional organizations operate placement services for the benefit of their members. These organizations publish of job vacancies and distribute these lists to members. ? Employee leasing Individuals who are hired by one firm and sent to work for a specific duration of time are called leased employees. When an organization has a need for specific employee skills, it contracts with the leasing firm to provide a certain number of trained employees. ? Personal get to Another means of recruiting is the personal contact.Some times personal and good communication can provide an opportunity to get experience manpower as well as better job offer. 5. 9 Advantages & disadvantages of internal recruitment When internal recruiting is used, the vacancy is filled by a person of known ability. There are some benefits of internal recruitment ? modify goodwill of the organization ? Improve morale and motivation of employees ? Improve luck of better selection since the c andidate is better known to the organization ? less(prenominal) costly. In the case of internal recruitment, the firm also faces some difficulties ? In breeding prevents injection at new blood in the organization. ? selection in limited in locating right talents. Inhibits innovation and creativity. ? advertize seniority mire then merit. ? Higher probability of likes or dislikes. 5. 10 Advantage & Disadvantage of external recruiting External recruiting can bring in new ideas and viewpoints. Another advantage are ? Injection of new blood with new knowledge and creativity. ? Economic in the long run. There are some disadvantages of external recruiting ? External recruiting is the costly ? Cause brain spill due to fear of lack of growth potential ? Hanger probabilities of employee turn over ? Demoralize existing employee. 5. 11 Practices in the Bank Recruitment Objectives of the Bank ? To build a jubilant worthy cadre of officeholders. To provide the bank with an efficient and co st effective human resource setup. ? To keep bank free from un healthy practice of Trade Union. The bank strictly follows all steps of recruiting and selection process to achieve above-mentioned objectives. The bank recruits from both internal and external sources. The bank makes its applicants pool only by newspaper advertising. Some times they recruit from internship student, where foreign banks i. e. HSBC and Standard Chartered bank, recruit major of their fresh executives from internship students pool. But the bank normally does not go for campus recruitment as well as other methods. Chapter 6 Training & Development 6. 1 Concept of Training & DevelopmentTraining is a planned effort by an organization to facilitate employees scholarship of job related knowledge and skills for the draw a bead on of improving performance. Training is the process of teaching new employees the vasic skills they need to perform their job. Training is a breeding experience that seeks a relatively pe rmanent change in individuals that will improve their ability to perform on the job. The training function, now popularly called HR development. Employee development, by design is more future oriented and more concentrated with education than employee job specific training. Development therefore, focuses more on the employees personal growth. 6. 2 Need and important of training Training is mainly job-oriented it aims at maintaining and improving current job performance.The need for the training program may arise due to the following ? Entry of new recruits ? Promotion ? To increase productivity ? To improve quality ? To met organizational objective ? To prevent accident ? To support personal growth and development 6. 3 Objectives of Training 1. Establish a comprehensive understanding of the target audience community in Partner regions, 2. Identify and agree the target chemical group(s) for the training needs analysis (TNA) within partner regions, 3. Design and implement an analysi s of training needs questionnaire, 4. Analysis and document perceived training needs 6. 4 Guidelines and Framework to Design a Training and Development Plan 1.Education for Social Change (Popular and Folk Education) Free Online Lesson Plans, Lecture Notes, etc. 2. Online Resources (each having lists of resources) almost Training and Development 3. Online Educational Directories, Learning Portals, etc. About T&D 6. 5 Training method Training methods consider the choice of method for employee training. With training objectives defined and learning principles in mind. Methods of training are basically tow types- ? On the job training The initial stages in the planning and design of an on the job training are a) Refer to the agreed objectives for the training as produced in the TNA or the initial planning stages. ) Consider the identified target learning population and how they world power affect the training design. c) List the ways in which each objective might best be met. d) Decid e whether the learning might be best achieved by an on the job or off the job training. ? Off the job training Off the job training- Off the job training is conducted in a location specifically designated for training. It may be near the work place or away form work, at a special training center or a resort. Conducting the training away from the work place minimizes distractions and allows trainees to devote their full help to the material being thought. Chapter 7 Compensation & Employee Benefits 7. 1 Concept of Compensation & Employee BenefitsOnce employees have done their jobs and been appraised, they expect to be paid. Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It has two main components (1) Direct financial payments (wages, salaries, incentives, commissions and bonuses), and (2) Indirect payments (financial benefits like employer-paid insurance and vacations, child care facilities). In admittance to compens ation in the form of wages and salaries, HRM provides workers with various services and programs known as employee benefits. 7. 2 Components of the compensation system Fig-Components of the compensation system 7. 3 Wages vs. SalaryThe words wage and salary are sometimes considered synonymous, but they have slightly different meanings. Wage refers to an hourly rate of pay and is the pay basis used most much for production and maintenance employees. Salary refers to a weekly, periodical or yearbook rate of pay. Clerical, professional, sales and management employees are usually salaried. 7. 4 Establishing cede rates The process of establishing pay rates while ensuring external, internal and procedural equity consists of five steps 1) Conduct a Salary Survey The first step of establishing pay rates is to conducting a salary valuate of what other employers are paying for comparable jobs. A keep abreast aimed at determining prevailing wages rates.A good salary survey provides speci fic wage rates for specific jobs. 2) Job Evaluation Job evaluation is a systematic comparison done in order to determine the worth of one job relative to another. It is a formal and systematic comparison of jobs to determine the worth of one job relative to another and eventually results on a wage or salary hierarchy. 3) Group Similar Jobs into Pay Grades Once has used job evaluation to determine the relative worth of each job, the committee can turn to the task of ascribeing pay rates to each job however, it will usually want to first group jobs into pay clans. It could, of course, just redact pay rates to each individual job.A pay grade is comprised of jobs of approximately equal difficulty or importance as established by job evaluation. 4) Price Each Pay Grade Wage Curves The next step is to assign pay rates to the firms pay grades. The firm can use a wage curve to help assign pay rates to each pay grade. The wage curve shows the relationship between the value of the job and the average wage paid for this job. 5) Five Tune Pay Rates Five tuning involves developing pay range and correcting out of line rates. Pay ranges is a series or levels within a pay grade, usually based upon years of service. 7. 5 Importance of Job Evaluation Job evaluation is aimed at determining a jobs relative worth.It compares jobs to one another based on their content, which is usually defined in term of compensable factors like skills, effort, responsibility, and working conditions. 7. 6 Types of Employee Benefits a) Mandatory Benefits Organizations are required to pay these benefits to the employees by law, rules, acts or ordinance. Example Salary, Bonus. b) Non-mandatory benefits Optional programs and services such as tutorship refunds, variety of discount programs, day care facilities for children, credit program etc. 7. 7 Employees Benefit Programs initiated by HRM There are many benefits and various ways to classify them. We can classify them as I. Pay for time not work ed II. amends benefits III. Retirement benefits IV. Service benefits 7. 7. 1 Pay for epoch Not WorkedPay for time not worked also called supplemental pay benefits- is one of an employers most costly benefits, because of the large amount of time off that many employees receive. Common time off with pay periods include holi age, vacations, jury duty, funeral leave, personal days, sick leave, sabbatical leave, maternity leave and unemployment leave insurance payment for laid off or terminated employees. The following figure illustrates a wide rage of such benefits Fig- defrayal for time not worked. 7. 7. 2 Insurance Benefits close employers also provide a number of voluntary insurance benefits. Medical or health insurance is a major optional protections benefit offered by employers.Insurance benefits include workers compensation, group hospitalization, accident, deterioration insurance and group life insurance. ? Workers Compensation Workers compensation provides promote income and medical benefits to work related accident victims or their dependents careless(predicate) of fault. Workers compensation benefits can be monetary or medical. In the event of a workers death or disablement, the persons dependents are paid a cash benefit based on prior earnings. ? health and Disability Insurance Health and disability insurance helps protect against hospitalization costs and the qualifying of income arising form off-the-job accidents or illness. Many employers purchase the insurance from life insurance companies. most(prenominal) health insurance plans provide at least basic hospitalization and surgical and medical insurance for all legal employees at group rate. ? Life Insurance Group life insurance provides cower rate for the employer of employee and includes all employees, including new employees, regardless of health or physical condition. In addition to hospitalization and medical benefits, most employers provide group life insurance plans. In many cases, the employer pays 100% or 50% of the basic premium, which usually provides life insurance. 7. 7. 3 Retirement Benefits A very important benefit to most employees is a discommodement plans. The major hideaway benefits are the social security program and tribute plans. ? Social SecurityMost people assume that social security provides income only when they are over 60, but it actually provides three types of benefits The familiar privacy benefits- provide an income if the employee retire at 60 survivors or death benefits payable to the employees dependents regardless of age at the time of death and disability benefits payable to disabled employees and their dependents. These benefits are payable only if the employee is insured under the social security Act. ? Pension Plans Pension plans provide a icy sum when employees reach a predetermined retirement age or when they can no longer work due to disability. There are many kinds of pension plan ? Contributory VS.Noncontributory Unde r contributory plans, both employees and employers are required to contribute to the pension fund, while under noncontributory plan pension funding is the sole responsibility of the employer. In noncontributory plans where contributions are based on company profits (deferred profit sharing plans), accumulated funds are usually allocated on the basis of salary. ? delimit benefit VS. delineate contribution plan With defined benefit plans, the employee knows ahead of time the pension benefits he/she will receive. The defined pension benefits itself is usually set by a formula that ties the persons retirement pension to an amount.Defined contribution plans specify what contribution the employee and employer will make to the employees retirement or savings fund. Here, in other words, the contribution is defined, not the pension. With a defined benefit plan the employee knows what his/her retirement benefits will be upon retirement. With a defined contribution plan, the persons pension will depend on the amounts contributed to the fund and on the retirement funds investment earning. 7. 8. 4 Employee Services In addition to the benefits describe above, organizations offer a wealth of services employees may find desirable. These services can be provided to the employee at no cost or at a significant reduction from what might have been paid without the organizations support.Services provided to employees may be- ? Wellness Program In an effort to stimulate wellness, many employees can provide recreational facilities for employees or recover employees for health club memberships. Other companies provide incentives for employees to participate in course session programs, quit smoking, lower blood pressure or cholesterol or to take similar steps toward good health. ? Educational Assistance Another important benefit is educational assistance. Some times companies offer monthly stipends for students. Typically, employees are reimbursed for tuition and possibly for books or other associated costs. ? Child-care AssistancesIt is likely that every major company will soon consider offering child-care assistance as an employee benefit. In most recent year this benefit is being popular in our country because of the number of women in the labor market has increased dramatically. ? Another Services are Another important services, that can be provided by the company are Social and recreational events, employee assistance programs, credit unions, housing, tuition reimbursement, company paid transportation, free coffee, baby-sitting services or referrals. 7. 9 Incentive Plans Manager may offer group and individual incentive plan those ties pay to some measure of he firms overall profitability. Several incentive plans are ? Piecework PlansA system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day. ? be Pay as an Incentive Merit pay or a merit raise is any salary increase the firm awards to an individual employee based on his or her individual performance. ? Profit Sharing Plans Profit sharing plan is a plan whereby employees share in the companys profits. There are several types of profit sharing plans ? In cash plans In cash plans, the firm simply distributes a percentage of profit as profit shares to employees. ? Deferred profit sharing plans The firm places a predetermined portion of profit in each employees account under a trustees supervision. ? Employee Stock Ownership Plans (ESOP)ESOPs are company wide plans in which a corporation contributes shares of its own stock or cash to be used to purchase such stock of the firms stock tor employees. Chapter 8 Employee Relationship 8. 1 The Meaning of Ethics Ethics refers to the principles of conduct organisation an individual or a group and specifically to the standards individual use to decide what he/she conduct should be. 8. 2 organizational culture Organizational culture is the characteristic values, tr aditions and behaviors a companys employees share. A value is a basic belief about what is right or wrong, or about what should or should not do. 8. 3 Employee Discipline and PrivacyThe aim of discipline is to encourage employees to behave sensibly at work (where well-founded is defined as adhering to rules and regulations). In an organization, rules and regulations serve about the same purpose that laws do in society discipline is called for when one of these rules or regulations are violated. A fair and just discipline process is based on three prerequisite rules and regulations, a system of progressive penalties and an appeals process. The four main types of employee privacy violations upheld by courts are intrusion, publication of private matters and disclosure of medical records and appropriation of an employees name or likeness for commercial purposes. 8. 4 Types of Disciplinary Actions ? Minor Penalties ? Reprimand / censure Withholding for a specify period or stoppage of increment, confirmation or promotion ? balk for a specified period at an efficiency bar in the time scale ? Any other minor punishment. ? Major Penalties ? retrieval from salary of the whole or part of any pecuniary loss caused to the band by the employee ? Degradation to any lower post ? exacting retirement from service with or without retirement benefits ? Removal from service ? Dismissal from service. 8. 5 Disciplinary Proceeding ? Before imposing any penalisation as above, the employee concerned shall be informed in writing about the charges and also be given an opportunity to answer to the charges in writing. An doubtfulness into charges may be held before taking final action in this regard and the competent authority may appoint an inquiry officer senior in rank to the accused to inquire into the charges and to submit his findings before handing over final order in the case. ? An employee, against whom disciplinary action is proposed to be taken, may be placed under suspe nsion, or the competent authority may order him to proceed on leave. ? The period of suspension will not exceed 90 days. If an employee, put under suspension, is not found guilty, he shall be entitled to full salary for the period of his suspension. ? If an employee put under suspension, is awarded any penalty in case of compulsory retirement or dismissal from service, the effect shall be from the date of suspension and in the case of any other penalty, the effect shall be from the date of passing of the order by the competent authority. An employee who has been awarded any penalty shall have a right to appeal to the competent authority within 30 days (or any period determined by the authority) from the date of the order. 8. 6 Disciplinary Appeals Processes The disciplinary appeal process consists of following three steps Steps 1 Management review In step 1, the complainants submit a written complaint to a member of management (e. g. manager, senior manager or managing director) wit hin seven calendar days of the occurrence of the eligible issue. Steps 2 Officer Complaint If not satisfied with that decision in step 1, then in step 2, the complainant submits a written appeal to the vice president or senior vice president of the division within seven calendar days of the step 1 decision. Step 3 Executive appeal Review finally in step 3, the complainant may submit a written complaint within seven calendar days of the step-2 decision to the employee relations department. This department then investigates and prepares case file for the executive review appeals board. 8. 7 Disciplines without Punishment No one likes being punished. The basic aim of discipline without punishment is to gain an employees acceptance of the rules by reducing the retaliatory nature of the discipline itself. 8. 8 Managing Dismissals Dismissal is the involuntary termination of an employees employment with the firm. Dismissal is the most drastic disciplinary step the manager can take. Becaus e of this, special care is required to ensure that sufficient cause exists for it. Managing dismissals is an important part of any supervisors job.The best way to handle a dismissal is to avoid it in the first place. Many dismissals start with bad hiring decisions. Using sound selection practices including assessment tests, reference and background checks, drug testing and clearly defined job descriptions can reduce the need for many dismissals. 8. 9 Grounds for Dismissal There are four bases of dismissal 1. Unsatisfactory Performance Unsatisfactory performance may be defined as persistent failure to perform assigned duties or to meet prescribed standards on the job. Specific reasons include excessive absenteeism, tardiness, and adverse attitude toward the company, supervisor or fellow employees. 2. botch upMisconduct is deliberate and willful violation of the employers rules and may include stealing, rowdy behavior and insubordination. 3. Lack of Qualification for the Job Lack of qualification for the job is an employees inability to do the assigned work although he/she is diligent. 4. Insubordination Insubordination, a form of misconduct, is sometimes grounds for dismissal. It should remember that some acts are or should be deemed insubordinate whe