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