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At first we would like to express our gratitude to Almighty Allah Subhanahu wa ta’ala
for his favor to successfully accomplishment of the Book.
We also register our profound and heartfelt gratitude to Mr. Z. H. Shahedi, Executive
Vice President (Head of Human Resources Division).
This is a great pleasure to express our sincere thanks and gratitude to all the
employee and executives of Prime Bank Limited for their enduring and continuous
help and cooperation in spite of their business in day to day operation. We with due
respect remember their uncourageous assistance and inspiration.
Although we were very eager to perform an exclusive book but we had to face some
difficulties due to time constrains. No doubt this was the limited timeframe which
caused much of the limitations of this study. However, we regret for any mistakes in
this book in spite of our effort to collect relevant and significant data as much as
possible and thereby to make the project as success.
Finally we would like to thank our family, all of our well-wishers who have assisted us
in providing necessary data, information etc. related to prepare the book. If any part
of this book can contribute a little to the work of our successors, it would be the great
achievement of the book.
- Md Shajedul Islam
- Md Ali Ahsan
i
ABSTRACT
ii
CONTENTS
Acknowledgements i
Abstract ii
Contents iii – iv
List of Figures v
List of Tables vi
Acronyms vii
iii
2.10 Factors affecting recruitment and selection process 22
2.11 Challenges of Recruitment and Selection 23
2.12 Changing context of recruitment and selection decisions 24
2.13 Systems approach to selection 25
iv
LIST OF FIGURES
v
LIST OF TABLES
vi
ACRONYMS
MD : Managing Director
CV : Curriculum Vitae
vii
CHAPTER ONE INTRODUCTION
1.1 Introduction
Human resource is the most precious asset to any organization. Unlike other assets,
people are the only greatest potential asset and the only greatest potential liability
that an organization will acquire as it moves about its business. People are
individuals who bring their own perspectives, values and attribute to organizational
life and when managed effectively, these human traits can bring considerable
benefits to organizations. As we move through the 21st century where a globalize
workforce is the basis of competition we find that the principles of human resource
planning, recruitment, selection and development are of prime importance. And to
manage a diverse workforce effectively, an organization must hire and promote the
most capable candidate for a job, while being mindful of the necessity to build a
workforce that is representative of the greater business community. This may be
achieved through using more appropriate and inclusive recruitment and selection
strategies.
Recruitment and selection process play an important role to attracting and appointing
qualified personnel. Getting the right people in the right place at the right time doing
the right job is an essential element of recruitment and selection process in any
organization. An effective approach to recruitment and selection process can help an
organization to maximize the competitive advantages by choosing the best pool of
candidates quickly and cost efficiently.
1
Human resource practitioners and academics worldwide hold the belief that, survival,
growth and development of an organization grossly depend on an effective and
efficient culture of recruitment and selection of people endowed with broader and
deeper range of core competencies, preferred attitudes, knowledge, skills and
experiences. The ultimate goal of recruitment and selection of human resource is to
bring to bear on organizations, preferred attitudes, behavior and culture to elicit
better performance.
Dimension of banking all over the world has been changing rapidly due to the
deregulation of globalization and technological innovation. Now-a-days banking
business has been facing more competition locally as well as globally. To survive in
this competitive banking world, banks require developing appropriate financial
structure, developing professionalism in the sense of developing appropriate
recruitment and selection policy of human resources of the Bank.
2
1.3 Objectives of the study
1. To explore the overall recruitment and selection process of Prime Bank Limited,
a reputed private commercial bank in Bangladesh.
3. To assess the challenges associated with the recruitment and selection practices
of PBL.
6. To identify factors that will improve recruitment and selection practices of PBL.
The purpose of the methodology was to describe the research procedure. This
includes overall research design, the sampling procedure, the data collection method
and the data analysis procedure. The research design was descriptive in nature. The
data was gathered through personal interview and observation method.
The sample for the study was taken from the staff of Head Office of Prime Bank
Limited, Dhaka, Bangladesh. The sample unit of the study constituted all the staff
from the various departments of the banks. Out of total universe 20 respondents
have been taken for convenience. The simple random and purposive sampling
techniques were adopted in the selection of the sample units or respondents from
HRD and other departments.
¾ Primary Data
For collection of primary data, randomly employees are selected and interviewed.
Information, which we collected, was based on the questionnaires filled up by the
sample employees. Corresponding to the nature of the study direct, structured
questionnaires with a mixture of close and open-ended questions will be
3
administered to the relevant respondents within the HRD and other departments of
the bank.
¾ Secondary Data
Under secondary method we took the help of various reference books, journals
annual report of the bank which we have mentioned in bibliography and also by way
of surfing through the company website.
Prime Bank focuses on a wide range of financial products and services which
include commercial banking through both conventional and Islamic mode, Merchant
and Investment Banking, SME & Retail Banking, Credit Card and Off-shore Banking.
It plays Leading Role in Syndicated & Structured Financing. It has expertise in
Corporate Credit and Trade Finance and made extensive market penetration with
continuous growth in Corporate, Commercial and Trade Finance sectors. Rather
than business they mainly focus on understanding customer need and trying to
anticipate their needs. Because they know, Bangladesh needs a properly managed
financial institution to achieve customer satisfaction. Through their strong
determination, Prime Bank becomes now the most popular bank among people in a
short period of time. They achieved spectacular milestones in banking sector which
signifies their excellence in banking business. The bank has been graded as a top
class bank in the country through internationally accepted CAMEL rating.
Total assets of Prime bank limited stood at Tk. 236.8 billion equivalent to USD 3.37
billion at the end of 2012. With wide customer-base Prime Bank established itself as
the Market Leader among the conventional private commercial banks for deposits
and advances.
4
Presently the Bank has 130 (One Hundred Thirty) branches, 17 (Seventeen) SME
Centre/ Branches all over Bangladesh. Out of the above 130 branches, 05 (five)
branches are designated as Islamic Banking branch complying with the rules of
Islamic Shariah. Also the Bank has 3 (Three) Off-shore Banking Units (OBU).
To keep pace with time and in harmony with national and international economic
activities and for rendering all modern services, PBL as a financial institution,
automated all its branches with computer networks in accordance with the
competitive commercial demand of time. In order to retain competitive edge,
investment in technology is always a top agenda and under constant focus. Prime
Bank Ltd. is better placed and poised to take their customers through fast changing
times and enable them compete more effectively in the market they operate.
¾ Vision
¾ Mission
¾ Corporate Culture
For Customers
To provide the most courteous and efficient service in every aspect of its business.
To be innovative in the development of new banking products and services.
For Employees
By promoting good staff morale through proper staff training and development and
provision of opportunities for career development.
5
For Shareholders
By forging ahead and consolidating its position as a stable and progressive financial
institution.
For Community
Prime bank has several departments to maintaining its day to day operations in
smoothly and more effectively and efficiently. Departments of Prime Bank are-
x Marketing Division
6
Out of the entire departments our prime concern is Human Resources Division
(HRD). The Bank acts on the conviction that Human resource is the most valuable
asset for the Bank. PBL continuously endeavor to create an organization of mutual
trust, establish an open and enabling environment where their people can work with
self respect, dignity and freedom of speech. The bank believes that their investment
in Human resource development is a key to sustainable growth. In this regard 2011
has been considered as a year of “Employee Excellence” with significant raise in the
salary, benefit for the employees. The Bank has launched comprehensive plans to
hire (recruitment and selection), develop and retain its human resource base with the
right level of skills and talent to meet current and future needs.
The book deals with the recruitment and selection process in terms of theoretical
point of view and the practical use. The study will allow learning about the
recruitment and selection issues, importance, modern techniques and models used
to make it more efficient. The study will help to learn the practical procedures
followed by the leading bank. Moreover the study will help to differentiate between
the practice and the theories that direct to realize how the bank can improve their
recruitment and selection process.
The study of this kind is generally encountered with some limitations. Unavailability
of data is a major problem. Data accuracy can not be ensured as mainly secondary
data collected from Annual Report, Various Financial Stability reports, Economic
trends is used in this study. However, repeated and sincere efforts have been given
to ensure the accuracy of the data used in this study.
7
CHAPTER TWO LITERATURE REVIEW
Recruitment is nothing but the process of searching the prospective candidates for
employment and then stimulating them to apply for jobs in the organization (Edwin B
Flippo, 1989). It is the activity that links the employees and the job seekers (David A.
DeCenzo & Stephen P. Robbins, 2005). It is also defined as the process of finding
and attracting capable applicants for employment. This process begins when recruits
are sought and ends when their applications submitted. According to Costello (2006),
recruitment is described as the set of activities and processes used to legally obtain
a sufficient number of qualified people at the right place and time so that the people
and the organization can select each other in their own best short and long term
interests. Jovanovic (2004) said recruitment is a process of attracting a pool of high
quality applicants so as to select the best among them. For this reason, top
performing companies devoted considerable resources and energy to creating high
quality selection systems. The focus of recruitment and selection according to
Montgomery (1996) is on matching the capabilities and inclinations of prospective
candidates against the demands and rewards inherent in a given job.
Draw up a job analysis detailing the specific nature of the responsibilities, tasks,
duties, accountability, competencies and training required for the post. This will
provide the foundation for the recruitment process.
8
Prepare a job evaluation which is an assessment of the value of the job in relation to
other jobs, so that the rewards and remuneration can reflect its value and attract
appropriate candidates.
Person specification Identifies the characteristics of the ideal person for the
job e.g. Knowledge, qualification, personality
Develop a job description, which is a broad description of the jobs, its title, duties,
responsibilities and requirement, purpose, authority and performance targets.
Prepare a personal profile (job / person specification), which defines the minimum
acceptable human qualities of the individual needed e.g. educational qualifications,
experience, personality, skills for the proper performance of a job. These can be
classified in a number of ways, such as essential and desirable and can be used to
create a short list of the applicants and as a checklist by the interviewers.
Decide on the best way of obtaining the right person. This may be by external
recruitment or internal by redeploying an existing employee or by outsourcing to
another company. Finally, communicating the information about the organization, the
job and the terms and conditions of service among the prospective candidates and
deciding the route for attracting qualified applicants by selecting the appropriate
media for advertising the vacancy and encouraging them to apply for jobs in the
organization.
9
2.3 Goals of recruitment
1. To create a talent pool of potential candidates for the benefits of the organization.
4. To identify and prepare potential job applicants who will be the appropriate
candidature for the job.
Recruitment takes place within a labor market. This includes a mass of available
people who have the skills to fill open positions. Sources for recruitment depend on
the availability of the right kinds of people in the local labor market as well as on the
nature of the positions to be filled. An organization’s ability to recruit employees often
hinges as much on the organization’s reputation and the attractiveness of its location
as on the attractiveness of the specific job offer. In general, the sources of
employment can be classified into the following two types:
1. Internal sources
2. External sources
Sources of recruitment
10
2.4.1 Internal sources of recruitment
Filling vacancies from inside the organization is known as the internal sources of
recruitment. Here the important methods are explained below:
Organizational Database
The increased use of human resource information systems allows HR staff members
to maintain background and KSA information on existing employees. Analysis of
present employees is greatly facilitated by HR Audits summarize employee’s skills
and abilities. Some employers use personnel replacement chart to keep track of
inside candidates for their most important positions. These show the present
performance and promotability for each potential replacement for important positions.
Promotion
The most important source of filling vacancies from within is through promotions.
Promotion is a change within the organization to a higher position that has greater
responsibilities and requires more advanced skills. It usually involves higher status
and on increases in pay.
Transfer
Transfer is concerned with the shifting of an employee from one job to another
having similar status and responsibility. As Gary Dessler mentioned, transfer is a
move from one job to another usually with no change in salary or grade.
Job Posting
Job posting is an integral method of recruitment in which notices of available jobs are
posted in central locations throughout the organization and employees are being
given a specified length of time to apply for the available jobs.
Advantages Disadvantages
Employees see that competence is Employee who apply for jobs and
rewarded and morale and performance don’t get them may become
may thus be enhanced. discontented, informing unsuccessful
11
Having already been with your firm applicants as to why they were
for some time, inside candidates may rejected and what remedial actions
be more committed to company goals they might take to be more successful
and less likely to leave. in the future is thus essential.
12
Existing employees are the most appropriate means to let people know that the
company really does want people having specific skills/experience to apply. But
sometimes employee referrals can lead to nepotism and breaches of policy and
procedural guidelines and staff dissatisfaction with the recruitment and selection
process.
Job advertising
One of the more widely used methods of recruitment is job advertising. Good job
advertisements must first attract attention (for appropriate job-seeker); attract
relevant interest (by establishing relevance in the minds of the ideal candidates);
create desire (to pursue what looks like a great opportunity), and finally provide a
clear instruction for the next action or response.
Unsolicited applicants
Unsolicited applicants, whether they reach the employer by letter, e-mail, telephone,
or in person, constitute a source of prospective applicants.
Campus recruiting
Employment agencies
Special recruitment events such as job fair are another external recruiting method.
Job fairs are events in which many different employers gather at one occasion to
interview applicants for jobs.
13
2.4.2.1 Advantages and disadvantages of external recruiting
Advantages Disadvantages
The new hire has no group of The new employee may require a
organization. time.
Internet / web based recruitment have two main features; firstly job boards allow
member companies to post job vacancies where as on other hand, CV (curriculum
vitae) data base allows the candidates to upload their résumés, later to be included
in searches by member companies. The advantages and disadvantages are as
follows:
Advantages Disadvantages
14
recruitment process. According to Heinz Weihrich & Harold Koontz (2002), selection
is the process of choosing the most suitable person from within and outside of an
organization for the current position or for the future positions. In this process,
relevant information about applicant is collected through a series of steps so as to
evaluate their suitability for the job to be filled. On other hand, selection is the
process of assessing the candidates by various means and making a choice
followed by an offer of employment (Graham, 1998).
Both recruitment and selection are the two phases of the employment process. The
differences between the two are:
Recruitment Selection
15
Recruitment is concerned with tapping Selection is concerned with selecting
the sources of human resources. the most suitable candidate through
various interviews and tests.
1. Preliminary Interview
The preliminary interview is an excellent opportunity for HRD to describe the job in
enough detail so the candidates can consider whether they are really serious about
applying. Sharing job description information with the individual frequently
encourages the unqualified or marginally qualified to voluntarily withdraw from
candidacy, with a minimum of cost to the applicant or the organization.
2. Completed Application
Most companies ask the applicant to complete a application from that provides a
place for him or her to record identifying data such as name, address, job for which
he or she applying and information covering education, work experience, etc.
16
Factors that might lead to a negative decision at this point include inadequate or
inappropriate experience, or appropriate or inappropriate education. There might
also be other “red flags” identified, such as gaps in the applicant’s job history, many
brief jobs or numerous courses and seminars instead of appropriate education.
Passed
Failed test
Employment Test
Passed
Passed
Failed to impress interviewer Comprehensive Conditional
interview job offer
Passed
Able to perform
essentials
elements of job
Placement job
offer
17
3. Employment Test
The primary objective of testing is to obtain data about the applicants that help to
predict their probable success in the given responsibility. If a review of an application
form reveals no information that would disqualify the candidate, he may then be
given one or more tests. The most commonly tests can be classified as follows:
Intelligence tests- are designed to measure mental capacity and to test memory,
speed of thought and ability to see relationships in complex problem situations.
Aptitude tests- are constructed to discover interest, existing skills and potential
for acquiring skills.
Personality tests- Tests that use projective techniques and trait inventories to
measure basic aspects of an applicant’s personality, such as introversion,
stability and motivation.
Interest tests- These tests are an inventory of a candidate’s like and dislikes in
relation to work. They are designed to discover a person’s area of interest and to
identify the kind of work that will satisfy him.
Dexterity tests- The person who is “clever with his head” is not necessarily
“clever with his hands”. In fact, there is little relationship between intelligence and
the ability to use one’s hands and figures skillfully. There are two types of
dexterity -manual and finger that have been found to be each other. Some jobs
require good finger dexterity.
¾ Precaution in using Tests
Tests should be used only when found reliable and valid
Test of Reliability
It implies the characteristics that refer to the consistency of scores obtained by the
same person when retested with the identical or equivalent tests.
Test of validity: There are two types of test of validity-
x Content Validity: It implies the extent to which the contents of a test are related
to the job requirements.
x Criterion Validity: It implies the degree to which test scores are related to job
performance.
18
4. Comprehensive Interview
Reference checks
Background employment checks
Criminal records
Driving records
The purposes of the reference check are to obtain information about past behavior of
applicants and to verify the accuracy of information given on the application blank.
If a job applicant has passed each step of the selection process so far, it is typically
customary for a conditional job offer to be made. Conditional job offer usually are
made by an HRM representative. In essence, what the conditional job offer implies is
that if everything checks out okay passing a certain medical/physical test-the
conditional nature of the job offer will be removed and the offer will be permanent.
7. Physical examination
The physical examination is normally required only for the individual who is offered
the job, and the job offer is often contingent on the individual passing the physical
examination.
The responsibility for making the final selection decision is assigned to different
levels of management in different organizations.
19
In many organizations, the HR Department handles the completion of application
forms, conducts preliminary interviews, testing and reference checking and arranges
for physical examinations. The comprehensive interview and final selection decision
are usually left to the manager of the department with the job opening. Such a
system relief the manager of the time consuming responsibilities of screening out
unqualified and uninterested applicant.
The applicant who passes all the foregoing screening is assigned to a vacant
position in a department where the Manager or Supervisor has interviewed and
accepted him. At this point induction program will begin.
The selection process can be successful if the following requirements are satisfied:
1. Someone should have the authority to select, where this authority comes from
the employment requisition as developed analysis of the workload and workforce.
2. There must be some standard of human resource with which applicant can be
compared. In other words, a comprehensive job description should be available
beforehand.
3. There must be a sufficient number of applicants from whom the required number
of employees may be selected.
In this regard, recruitment and selection process invariably influence the whole
matter of employment in the organization
Selection means to choose the person from among the prospective candidates to fill
in the vacant posts in the organization. The success of the organization depends
upon the quality of human resources selected for the job. Thus selection of
personnel is the most important function of the Human Resource Management. The
importance of selection may be judged from the following facts:
20
Procurement of qualified and skilled workers
Scientific selection facilitates the procurement of well qualified and skilled workers in
the organization. It is in the interest of the organization in order to maintain the
supremacy over the other competitive firms. Selection of skilled personnel reduces
the labor cost and increases the production. Selection of skilled personnel also
facilitates the expansion in the size of the business.
Employees with right skills will do a better job for any company and for the owner.
Employees without these requisite skills would not perform effectively and the
company performance will suffer to a great extent. So there is a time to screen out
undesirables and to choose the better and perfect candidate that can effectively
contribute to company success.
Secondly, courts will find the employer liable when employees with criminal records
or other problems use access to customers’ homes to commit crimes. Lawyers call
hiring workers with such backgrounds, without proper safeguards, negligent hiring.
So the negligent hiring highlights the need to think through what the job human
requirements are. So in order to avoid the concept of negligent hiring, it is necessary
to make a systematic effort in order to gain relevant information about the applicant
and verify all the documentation.
21
Reduces personnel problems
Finally it can be said that, recruitment and selection process are important practices
for human resource management and are crucial in affecting organizational success.
External factors
x Labor market
Conditions of the labor market are a major factor in the design of the recruiting and
selecting process. Labor market affects the size and quality of the applicant pool
which in turn affects the choice of selection methods.
Several laws have been passed that provide for equal employment opportunity
(EEO). Bangladesh Labor Law-2006, prohibit employment practices that discriminate
on the basis of race, color, religion, national origin, sex or age. Thus Equal
employment legislation remains the most significant influence on the design of
selection systems.
22
Internal factors
Besides there are also many internal factors, such as organizational goals, strategies,
objectives, tasks, technology, organizational structure, the kinds of people employed
by the organization, the reward system and various kinds of policies affect
recruitment and selection process of an organization.
23
Misleading communications regarding employment contract provisions can result in
the loss of a desired candidate and potential claims for redress through industrial
mechanisms. To minimize the risks organizations need to:
Select assessment methods and tools appropriate for predicting the required
performance outcome for the position;
Ensure that recruitment and selection policies and practices are strategically
integrated with business.
The recruitment and selection function should also have measures in place to
evaluate performance in relation to the time taken to fill vacancies; the costs
associated with conducting the process internally/externally; and quality of candidate
selection and retention.
Dess and Jason (2001), suggest that in business strategy implementation the
involvement of line managers in the entire staffing process (i.e., drafting of job
descriptions and person specifications, setting selection criteria and being on the
panel of recruitment) is vital for ensuring recruitment and selection to meet business
needs. In other words, the line managers are the owner of the recruitment and
selection process along with HR playing a facilitator role.
24
that firms need adaptable people who can adjust to rapidly changing customer needs
and operational structures, while Burton (2001) argues that employees, and the way
they work, comprise the crucial difference between successful and unsuccessful
organizations. He argues that as technology increases and product life cycles
shorten, the major source of competitive advantage will be the individual worker.
Delery and Doty, (1996) further developed this view of the prevailing business
environment and reiterated that: with the sweeping changes in today's business
climate and the rise of re-engineering to meet the needs of organizations in the area
of downsizing or cost reduction, firms must be equipped to recruit individuals who
can operate in a non-structured or “virtual” organization. Even in today's technically
advanced business environment, the human factor will always be instrumental to the
success of an organization.
Effective recruitment and selection processes will place appropriate people into jobs
so that organizations can meet their strategic and operational goals. Recruitment
strategies must align to the organization’s strategic direction to enable appropriate
workforce planning and alignment of resources to successfully move the business
forward. This plan is translated into position and job requirements which are matched
with such individual characteristics as intelligence, knowledge, skills, attitudes and
experience.
25
efficient human resources) After human resource have been selected in positions
they must be introduced with the job. The orientation involves learning about the
company, its operations and its social aspects. This learning resource will help the
HR Manager take a strategic view when they plan a recruitment and selection event.
Managerial
requirements External
plan environment
Positions
requirements
and job design
Recruitment
Selection Orientation Managerial Enterprise
Placement Performance performance
Individual
characteristics
Development Appraisal
and reward
Internal
Environment
Promotion
Demotion
Placement
The new selected staff then carry out their functions, resulting in their performance
eventually determines organizations performance. Subsequently, the performance is
appraised and on the basis of this evaluation, the staff and organizational
development is initiated. Finally the staff may be promoted or transferred on the
basis of this appraisal.
26
CHAPTER THREE GENERAL FINDINGS
PBL states in its vision that staff are its most valuable resource. It is clear that the
staffs of the bank have a crucial role to play in achieving the challenging mission,
vision and strategic goals set by the bank authority. The bank therefore needs to be
able to attract and retain staff of the highest caliber. That’s why PBL formulate the
core principles that are outlined below:
PBL will seek to attract the best candidate for the job based on merit and
ensure the identification of the person best suited for the job and the
organization.
The Bank will ensure that the recruitment and selection of staff is conducted in
a professional, timely and responsive manner and in compliance with current
employment legislation. The Bank will provide appropriate training,
development and support to those involved in recruitment and selection
activities in order to meet this core principle.
27
PBL will promote best practice in recruitment and selection. It will continuously
develop its recruitment and selection practices to allow new ideas and
approaches to be incorporated.
PBL will ensure that its recruitment and selection process is cost effective
PBL usually follows internal recruitment but when the need arises they go for
external recruitment to fill up the vacancies.
PBL always likes to hire people for long period of time, bank give more
emphasis on them who wants to get promoted to mid level positions.
The corporate culture of PBL is to treat employees with extraordinary employee not
general employee. Together they form a family and they have a close bond which
motivates them to work as a team.
28
1. Recruitment process generally begins when the Human Resource division
receives requisitions for recruitment from any department or any branch of the
Bank. The HR requisitions contain details about the position to be filled.
4. Communicating the information about the organization, the job and the terms
and conditions of service.
Most employers combine the use of internal and external sources of recruitment.
Organizations that face a rapidly changing competitive environment and conditions
may put emphasis on external sources in addition to developing internal sources.
The HR division of PBL emphasizes more on the external recruitment sources rather
than internal sources.
Promotion
The most important source of filling vacancies from within is through promotions. In
this case, PBL has some specific criteria for promoting an employee. If there is any
vacancy and then all those employees having all the qualifications of the senior level
post can apply for the job. Obviously each employee can get this opportunity for
higher status, remuneration, job facilities with vital responsibilities through a formal
interview.
29
Transfer
Generally, after 3 to 5years, an employee is transferred from one department
to another. PBL uses this transfer method for several reasons such as,
Job Posting
PBL also utilizes the benefits of internal recruitment by posting the job internally. HR
division of PBL informs the other departments and branches through phone and
sometimes by giving a formal letter.
Newspaper advertisement
Website advertisement
Like many employers, PBL has found its own website to be more effective and
efficient for recruiting employees. The job seekers are encouraged to e-mail their
resume or complete online applications on the website of PBL.
30
3.6 Selection process of PBL
Some organizations may give importance to various tests, while others may
emphasize interviews and reference checks. Similarly a single brief selection
interview might be enough for applicants for lower level positions, while applicants
for managerial jobs might be interviewed by a number of experts. PBL gives
emphasis to both tests and interviews and the HR Division of PBL has different
selection committees for applicants to fill both the lower level and higher level
positions. The typical selection process of PBL is outlined here.
Inviting application
CV screening
Written test
Face-to-face interview
Medical examination
Joining
Receipt of Application
This is the first selection step to join PBL. Candidates either send their CVs in
application for a specific vacancy, or they send unsolicited CVs for any suitable
position. There is a box in front of the HR Division where interested person drop their
unsolicited CV. The HR Division collects job applications against each job vacancy.
In case of newspaper advertisements, the applicants are given at least 3 weeks to
apply. After a specific period, each and every job is closed for applying.
31
CV Screening
The next step is the short listing of CVs. Usually the HR Division is occupied in the
short listing. To recruit experienced bankers, CVs may be sorted out from the
collection of unsolicited CVs received. Or, another possibility is to find out
experienced and competent bankers in other banks. Once potential candidates are
thus found out, they are contacted and called for an interview.
Written Test
The primary aim of testing is to obtain data about the application that help predicting
their probable success in a job. A variety of tests are used as selection tools. PBL
combines intelligence tests and aptitude tests in the form of written tests for selection.
Generally PBL take written test for entry level position like Trainee assistant and for
Management Trainee level. Sometime BIBM/IBA takes the written test on behalf of
PBL.
The content of written test questions vary based on the job positions and source of
recruitment. Generally the written test consists of two parts; Multiple Choice
Questions (MCQ) part and Descriptive/Comprehensive written part. For the entry-
level job positions, the MCQ part combines questions on general knowledge,
analytical problems or critical reasoning, grammatical rules and translations, and
mathematical problems.
Face-to-Face Interview
32
Trainee Assistant Officer (TA) and Management Trainee Officer (MT)s’ basically MD,
DMD and Head of HR conduct interview session. For recruiting experienced
professionals several interviews may be conducted. PBL arranges different types of
interviews based on the job position. Generally structured interviews are conducted
for both the entry and mid-level job positions. Structured interviews use a set of
standardized questions asked of all job applicants (Mathis & Jackson, 2005).
In the case of entry-level job positions the applicants are asked some general
questions, questions on academic background, current national and global issues,
problem solving questions (categorized as behavioral and situational interviews), etc.
For the midlevel job positions the applicants are asked some additional questions
based on the job description. In the case of the top-level job positions, the applicants
are asked some more questions to identify their in-depth knowledge of industrial
policy, fiscal policy, banking policy, strategic planning, etc. A sample of the interview
questions is provided. All the interviews are conducted by the respective recruitment
and selection committee.
At the interview session the candidate are evaluated by the interview panel. The
management team decides which one will be selected. After that an offer letter is
made for the candidate. Once the candidates accept the offer letter, they are given
the Appointment letter. Rejected candidates are not informed.
Medical Examination
Like other bank PBL also take physical examination of the selected employees
whether the applicant is fit for the job or not. PBL has contract with renowned
Diagnostic Center in Dhaka city, the whole checkup is conducted by these two
diagnostic centers.
Joining
Once the candidate passed physical examination are given the joining and
placement letter. The newly recruited employees are asked to report their respective
joining place within one week.
33
CHAPTER FOUR DISCUSSION OF RESULT
This chapter explains information gathered from the field through the use of
questionnaires. These are analyzed to emphasize response from respondents using
various forms of graphical representations.
Gender Frequency
Male 16
Female 4
Total 20
Findings: Table 1 shows that among the entire respondent there were 16 male with
4 female respondents.
Gender Distribution
Female
20%
Male
80%
34
Interpretations: From Figure 6, it is realized that 80% of the total number of
participants were male while 20% of the total number were female. This clearly
shows that there were slightly more male participants than female in this survey and
it may be as a result of the sample technique used in selecting respondents or that
the bank has more male workers than female.
This was to find out the highest educational qualification of the various respondents
in the study area, responses are as follows:
MBA 10
MBM 3
BBA 5
Graduation 2
Total 20
Findings: Table 2, shows that 10 respondents had MBA Degree from various fields,
while 3 had MBM degree, 5 had BBA and only 2 completed their graduation.
Educational Qualification
Graduation
10%
BBA
25%
MBA
50%
MBM
15%
35
Interpretations: From the figure 7, it was realized that 50% respondents had MBA
Degree from various fields, while 15% had MBM degree, 25% had BBA and 10%
completed their graduation. From the figure it is realized that the organization has
several level of qualified personnel to help carry out the day to day activities of the
bank.
This was to find out the number of years respondents had spent at their work post,
answers are illustrated as follows:
1-6 14
7-12 5
13-18 1
Total 20
Findings: Table 3 shows that majority of respondents 14 had worked with the bank
between 1-6 years, while 5 respondents had spent between 7-12 years at the bank
and only 1 respondent spent 13-18 years at the Bank.
5%
25%
1-6 Years
7-12 Years
13-18 Years
70%
36
Interpretations: Figure 8 shows that 70% of the respondent among the population
had worked with the bank between 1-6 years, while 25% had spent between 7-12
years at the bank and only 5% respondents spent 13-18 years at the Bank. This
clearly shows that the majority of respondents had spent at least a year to six (1-6)
years at the bank.
The researcher wanted to know if the bank had any formal policy for recruitment and
selection of employees, responses are as follows:
No
0%
Yes
100%
Interpretations: Figure 9 shows that, out of 20 respondents, all agreed with the
question, that the bank had a formal policy for recruitment and selection of
employees. Respondents were further asked to state this policy. Twelve (12)
respondents sated that recruitment and selection is mainly an internal arrangement,
the human resource division accesses the various departments where there are
vacancies and the division then assesses staff requirements with those qualifying
appointed to fill these vacancies.
37
4.3 Outline of job analysis
This was to find out from respondents if the PBL outlines roles, duties and
responsibilities for a particular job.
Yes 18
No 2
Total 20
Findings: Table 4 shows that, from the total number of respondents, 18 answered
that the Bank outlines job analysis before advertising a vacant position but 2
respondents however answered in the negative that the PBL does not outline job
analysis.
No
10%
Yes
90%
Interpretation: As data obtained from figure 10, the majority of 90% of the
respondents answered in the affirmative that the Bank outlines job analysis like the
roles, duties and responsibilities before advertising a vacant position. But 10% of the
respondents however answered in the negative that the PBL does not outline job
analysis in terms of duties and responsibilities before advertising. From the
discussion it is realized that the majority of respondents agreed with the statement
that the bank outlines job analysis before advertising.
38
4.4 Methods of recruitment by PBL
In order to know the various types of methods used by PBL in selecting employees,
this question was asked. Answers from respondents are as follows;
Employee Referrals 6
Employment Agencies 1
Professional Associations 2
Newspaper Advertisement 11
Total 20
Findings: Table 5 shows that, 11 respondents answered that the bank uses
newspaper advertisements, 6 respondent answered that the bank uses employees’
referrals, 2 respondents stated that the bank uses professional associations and
only 1 respondents explained that the bank uses recruiting agencies as a means of
recruiting.
Methods of Recruitment
30%
Employee Referrals
Employment Agencies
55% Professional Associations
5% Newspaper Advertisement
10%
Interpretations: The figure 11 represents that 55% respondents stated that the bank
uses newspaper advertisements in advertising for jobs or as a recruitment section
39
tool, respondents explained that newspapers are read by lots of people and
therefore lots of people are covered.
30% respondent was of the opinion that the bank uses employees’ referrals as a
means of recruiting that is employees inform their friends and relations that the bank
has vacancies.
10% respondents shared that another method of recruiting was through professional
associations.
Finally, only 5% respondents stated that the bank relies on recruiting agencies in
selecting employees for the bank.
In a related issue, respondents were asked if the bank had a structured recruitment
and selection practices for new employees, respondents had this to say:
Educational Qualification 12
Interview 5
Training 3
Total 20
40
Findings: Table 6 shows that, twelve (12) respondents answered that PBL
emphasized educational qualifications, five (5) respondents answered that interview
is another practice in the selection of new employees and three (3) respondents
stated that training is another practices for recruitment and selection.
15%
Educational Qualification
Interview
25% Training
60%
Interpretations: All twenty (20) respondents agreed that the bank had structured
recruitment and selection practices in place for new employees. From the population
60% respondents agreed that one of such structures and selection practices was
educational qualifications, thus one or potential employees should have the
necessary educational qualification in order to be considered.
15% respondents explained that after the selection process through the interview,
new employees are trained in the selected positions they were employed before they
are fully allowed to start their new roles or jobs.
Related to the above respondents were asked which of the following were
considered for recruitment and selection of employees, that is academic
qualifications, work experience, interviews and tests. Table and figure illustrates
further:
41
Table 7: Factors considered before recruitment and selection
Academic Qualification 8
Interview 5
Work experience 3
Total 20
Source: Primary data
Findings: Table 7 shows that out of 20 respondents 4 agreed that tests, three (3)
answered that work experience, 5 respondents stated that interviews and 8
respondents agreed that academic qualifications are selection tools for new
employees.
15% 20%
Tests
Academic Qualification
25% Interview
Work experience
40%
42
usually to test the general knowledge of prospective employees. 15% employees
were of the opinion that work experience played an important role in the selection
process as those with experience are considered to be the best for the job.
The literature revealed that a wide range of methods, such as application forms,
interviews, formal tests, references, assessment centers and official transcripts are
used by firms in the selection and recruitment process. An organization chooses a
method that is most appropriate to the job positions.
The researcher wanted to find out from the HR Division the challenges the Division
encounter in the recruiting and selecting of employee. Responses are as follows.
Labor Turnover 1
Competition 4
Total 8
Labour Turnover
13%
Lack of Key
Talents
38%
Competition
49%
43
Interpretations: One major challenge facing recruitment and selection process at
PBL is the availability of key talents in the job market for specialized areas within the
bank. 38% of the population who shared this view stated that PBL as an institution
needs key talents to help run the bank and that is quite difficult to find in the job
market. 49% of the populations were of the opinion that another challenge facing
PBL in its recruitment and selection processes is competition from other institutions.
Respondents explained that financial institutions in the country are spring up fast,
and they are all recruiting the best in order to stay on top. Recruiting in this sense
means competing with other institutions for the same human resource. Another
challenge according to 13% of the population was labor turnover, the respondents
explained that most employees leave the institution shortly after being offered an
appointment which goes a long way to affect the bank as money has to spent again
in recruiting and selection process.
According to Kaplan and Norton, 2004, in the literature review, a common problem in
recruitment and selection is poor HR planning but the analysis revealed that labor
turnover; competition and lack of key talents are challenges that face recruitment
and selection which could be beyond HR departments.
This was to find out from respondents how effective the recruitment and selection
practices of PBL, respondents were to choose one of the following; very effective,
good, not effective, indifferent and bad as their answers.
Very effective 4
Good 11
Not effective 2
Indifferent 3
Total 20
44
Findings: Findings: Table 9 shows that, out of all the respondents 4 respondents, 11
respondents and 2 respondents respectively answered that selection and
recruitment practices were very effective, good and not effective.
Good
55%
Interpretations: Out of all respondents, 20% respondents were of the opinion that
the selection and recruitment practices were very effective and that the right
materials are employed for the bank. 55% respondents believed that the recruiting
and selection practices were good; they explained that the methods needed for the
right person to be employed are used. 10% of the respondents were of the opinion
that the recruitment and selection practices of the Bank were not effective. They
explained that these practices always give room to favoritism especially with
employee referrals while some are employed without necessarily going through all
the right procedures.
15% respondents were however indifferent to the question that the recruitment and
selection practices were effective or otherwise.
This was to find out from respondents if the selection and recruitment practices had
affected their performance, responses are as follows:
45
Impact of recruitment and selection practices on employee’s performance
3
No
17
Yes
0 2 4 6 8 10 12 14 16 18
Out of twenty (20) respondents, sixteen (17) representing 85% answered that ‘yes’
the selection practices had affected their performance while three (3) representing
15% answered in the negative that it has not affected their performance.
The researcher wanted to find out from respondents how recruitment and selection
practices or processes could be improved at PBL, answers from respondents are as
follows;
Total 20
46
Findings: Table 10 shows that, 6 respondents stated that early advertisement and
detailed job description, 2 answered that adequate background check, 4 explained
that equal opportunity for all, 5 stated that qualification linked to job and 4
respondents explained that procedure for selection are the factors for improving
recruitment and selection practices of PBL.
10%
20% Equal opportunity for all
25%
47
CHAPTER FIVE RECOMMENDATIONS AND CONCLUSION
Every position vacancy will be filled based upon a thorough position analysis
regardless of the level of the position or the extent of the search. The diversity goals
of organization the unit will be addressed in all recruitment and selection processes.
Units may use different processes for recruitment depending upon the circumstances
surrounding the need to fulfill the position, but must take steps to ensure the values
of the profession are applied in all procedures that are used. Recruitment and
selection committee members should be properly trained to assume the important
responsibilities of recruitment and selection.
The management of PBL cares for the quality of service as well as the quality
of its human resources.
The recruitment and selection is quite fair and square. Everyone at the HR
Division is honest and impartial which promotes the environment of
accountability.
The recruitment and selection process of PBL emphasizes more on who fits
the organization, rather than who fits the job. Thus, it has created a unique
organizational culture and the whole HR Division has ensures a friendly and
caring working environment.
48
Statistical measures such as correlation analysis and regression analysis are
not applied to predict and analyze the recruitment and selection requirements
more precisely.
Regret letters are not sent to the candidates who are not selected after joining
of the finally selected candidates.
PBL does not always check references properly, which may lead to a grave
problem for the organization.
5.3 Recommendations
From the study it is realized that recruitment and selection is of great importance to
every organization, though an integral part of human resource planning and
development, it application and operation and challenges makes its practice quite
difficult. These recommendations are therefore made to help make these practices
more effective. All applicants must be treated fairly; issues of favoritism should be
avoided while giving the chance to all. Employee referrals though a good idea should
be minimized to cater for a certain number of people rather than a whole scale
opportunity. That gives room to favoritism and at times employment of individuals
who might not contribute meaningfully to organizational output. The human resource
division should appraise employees to help them give off their best and help improve
performance of employees; this will always keep employees on their toes to give off
their best. Refresher courses must be organized for employees for them to be
abreast with trends in the ever growing market. It was revealed in the analysis that
key talents are difficult to come by, the bank can help upgrade the skills of some of
its staff in areas they find difficult to recruit in the market. This will also go a long way
to help staff contribute to the success of the bank. In the case of internet
advertisements, PBL does not use any job board, even though job boards are getting
popular increasingly among the employers.
49
5.4 Conclusion
Despite these challenges it was realized that these measures (recruitment and
selection practices) have been effective in the selection of employees for Prime Bank
even though much needs to be More so, it was realized that equal opportunities
should be given to all applicants who apply for jobs at PBL to help ensure fairness in
the selection procedure and not to hand others undue advantage over others. More
over it was realized that to make the selection and recruitment procedure complete
qualifications should be stressed and should also be linked with the job to be done
as most qualifications do not much the job to be done.
50
APPENDIX
QUESTIONNAIRE
1. Sex
Male [ ] Female [ ]
…………………………………..……………………………………………………………
4. Does the bank have any formal policy for the recruitment and selection of
employees?
Yes [ ] No [ ]
…………………………………………………….……………………………..……………
…………………………………………………………………………………………………
6. Does PBL outline job analysis (i.e. duties, responsibilities, skills, etc. required for a
particular job) before advertising vacancies for employment?
Yes [ ] No [ ]
7. Does PBL rely on any employment agencies for the recruitment and selection?
Yes [ ] No [ ]
51
8. When vacancies occur, are existing employees considered?
Yes [ ] No [ ]
Yes [ ] No [ ]
10. Does the Bank have a policy regarding internal recruitment versus external
recruitment?
Yes [ ] No [ ]
11. Which of these methods of recruitment are applicable to the PBL? You may
select more than one.
…………………………………………………………………….. …………………………..
12. Does the bank have structured recruitment and selection practices in place for
new employees?
Yes [ ] No [ ]
13. If yes to question 12, what are these recruitment and selection practices?
…………………………….……………………….……………………………………………
.……………………………………………….…………………………………………………
14. Which of these factor(s) are mostly considered for recruitment and selection of
employees? You may select more than one.
………………………………………………………………………………………………….
………………………………………………………………………………………………….
15. Does the Bank use interviews as part of your recruitment process?
Yes [ ] No [ ]
52
16. How would you class your interview structure?
17. Are these recruitment and selection practices able to provide appropriate and
qualified candidates to fill the vacancies?
a. Yes [ ] b. No [ ]
.........................................................................................……………………………….
…………………………………………………………....……………………………………
…………………………………………………………………………………………………
19. Does the Bank take into account any legislative requirements when recruiting?
Yes [ ] No [ ]
20. Have these recruitment and selection practices led to the employment of
competent staff?
Yes [ ] No [ ]
.......................................................................................................................................
.......................................................................................................................................
22. What are some of the challenges PBL associated with recruitment and selection
practices?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
23. What factors will improve recruitment and selection practices at the PBL?
…………………………………………………………………………………………………
………………………………………………………………………………………………....
…………………………………………………………………………………………………
53
LITERATURE CITED
Cran Cheryl (1995), Employee Retention Strategy, How to Attract and Retain Top
Performers, Sada NY, Blue Boulder Internet Publishing.
Dess, Gregory, G. and Jason, D. Shaw (2001), Voluntary turnover, social capital,
and Organizational performance, Academy of Management Review, 26(3): 446-
456.
Flippo Edwin B. (1989), Personnel Management, Sixth Edition, McGraw Hill, New
York, USA
54
Gupta C. (2006), Human Resource Management, Rev. Edition, Sultan Chand
and Sons New Delhi, India.
55
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