HRM-301 Term Paper

Recruitment and Selection Process of Eastern Bank Ltd.

By: Shaiful Islam

Introduction

Personnel or Human Resource is the vital factor of sustaining an organization whether production or service oriented. In production oriented organization the capacity, skill, knowledge etc. are not so visible to the general public unlike service oriented organization.

May be that’s the reason the service oriented organizations especially the banks are so much sensitive while hiring personnel or Human Resource.

To choice the right person for the right position is not so easy task. Running a bank is not only providing loan and making deposit. Rather a very critical chain of command is maintained over here to provide loan and make deposit efficiently especially to attract, serve and retain customer, increasing their utmost satisfaction and so forth.

Both corporate and retail customers are vital for the bank as one group usually deposit money and another make huge transaction we that means use these money for the growth of GDP.

Eastern Bank Ltd. (EBL) Is one of the top most domestic private limited banks in Bangladesh having 24 hours internet banking facility. Each and every year it has a huge turn over.

To maintain continuous customer satisfaction and make profit, round the clock it has to compete all other banks and financial organization including some leading organization like City Bank Ltd. HSBC, Brac Bank Ltd. Duch Bangla Bank Ltd. Etc.

Probably that’s why EBL always try to go through a rigorous recruiting and selection process. They are keen to find out the exact person for the exact position for its near about 34 branches throughout the country.This rigorous process include employment test taken by Institute of Business Administration (IBA), strict reference checking, performance simulation tests and many more.

Applicant those who can overcome all the rigorous part of the total process are only given the permanent job offer.One considerable thing is that, the large numbers of its contractual employees. Large number contractual employees of the bank’s total employees are given the opportunity to show their performance, skill, ability, knowledge for a considerable amount of time. If they can perform well, there is a chance for them to be permanent later on.

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Of course EBL always pays competitive salary to encourage its dedicated employees.

To patronize the local expatriates EBL never hire foreign expatriates. They take it as part of their Corporate Social Responsibility (CSR).

This is how working in EBL has been a covetable and lucrative offer in Bangladesh now a days.

Objective of the study

By doing the assignment we’ll be able to identify how the bank recruit and select personnel it requires to accomplish its day to day tasks. We’ll also be able to identify the process described in the text and their application in real life scenario in an organization like bank.By this we’ll be able to differentiate the process between the text and bank practice. And the most important thing is that, we’ll get a clear idea, how personnel are recruited and selected in a bank, so that we can prepare ourselves according to that level. This will greatly benefit us to get ourselves recruited and selected without any serious hassle and make our career with more flexibility.

Limitations of the study

Usually organization doesn’t want to disclose information regarding their official matters, most importantly those related to management decision.As our topic, recruiting and selection is more or less close to that we had to face many problems to make them believe that these informations will just be used only for academic purpose.

Then time limitation is another factor. We made many appointments but in many times we had to be frustrated. Sometimes due to traffic jam we could not present in the bank on time and lost our appointment, sometimes the officer gave us time, we went to the bank but the officer went outside for any official assignment, sometimes we could not make appointment on the flexible time of the concerned officer due to our class time and so on.

Source of Data

We have used both sources primary and secondary. We went to the bank (EBL) Head Office 4 times for getting the answers of our questionnaire that is our primary source.

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We were given a brochure of the bank actually the annual report 2008 of the bank and we have visited the bank’s website that has worked as our secondary source.

Questionnaire

Questionnaires are an inexpensive way to gather data. A well-designed questionnaire that is used effectively can gather information on both the overall performance of the test system as well as information on specific components of the system.

Questionnaires are versatile, allowing the collection of both subjective and objective data through the use of open or closed format questions.

Considering all these facts into account we’d made a questionnaire based on our text (whatsoever process is mentioned there). We’d also included some other relevant question and some p[possible answers from our knowledge and skill acquired so far in our academic and personal life.

For the betterment of understanding the questionnaire is enclosed herewith the assignment.

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01.00 Background of the Organization

Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior private commercial Banks in Bangladesh. Eastern Bank markets a wide range of depository, loan & card products. These products include different types of Savings & Current Accounts, Personal Loans, Auto Loan, Debit Card, Pre-paid Cards, Internet Banking, Treasury, Syndication, Corporate Banking and SME Banking services through a network of branches & centers countrywide. Eastern Bank has its presence in major cities/towns of the country including Dhaka, Chittagong, Sylhet, Khulna and Rajshahi. Tracing its origin back to 1992, EBL is serving the individual and corporate clientele alike with remarkable success offering innovative banking services since then.

Eastern Bank Ltd. incorporated on 16 August 1992 as a public limited company with the primary objective of carrying out all kinds of banking business in and outside Bangladesh. It was formed by taking over the businesses, assets, liabilities and losses of the erstwhile Bank of Credit and Commerce International (Overseas) Limited (BCCI). Eastern Bank commenced business with four branches and an authorised capital of Tk 1,000 million divided into 10 million shares of Tk 100 each. Tk 600 million has been subscribed and paid up by three different classes of shareholders, namely KA, KHA and GA. The KA-type shares (1.2 million) are those which are fully subscribed by the government of Bangladesh. The KHA-type shares (1.90 million) are fully subscribed by the financial institutions and GA-type shares (2.90 million) are subscribed by the depositors of the erstwhile BCCI branches. The bank is listed with the Dhaka Stock Exchange.

01.01 Vision

To become the bank of choice by transforming the way we do business and developing a truly unique financial institution that delivers superior growth and financial performance and be the most recognizable brand in the financial services in Bangladesh.

01.02 Mission

We will deliver service excellence to all our customers, both internal and external.

We will constantly challenge our systems, procedures and training to maintain a cohesive and professional team in order to achieve service excellence.

We will create an enabling environment and embrace a team based culture where people will excel. We will ensure to maximize shareholder's value.

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01.03 Values

Openness Trust

Commitment

Integrity

Service excellence

Responsible Corporate Citizen

01.04 Management team

The EBL Management Team or Management Committee (ManCom) comprises of a group of eleven people and each of them comes with an international working background and are committed in leveraging their experiences to take EBL to greater heights by ensuring top line revenues with dynamic capabilities.

EBL ManCom is unique in being able to envision the need of the business by bringing in a mixture of advanced technology solutions know-how and revamping the organizational make- up for maximum profitability.

This mix of people is persistent to provide unparallel service to its customers, come up with timely and innovative products and services and to enhance the capabilities of its people while emphasizing on the latest technology. This they believe will take the Bank to a leadership position in the country.

The objective of EBL ManCom is to drive the business to maximize the operational excellence and efficiency through acquisition of talent, developing systems, processes and people and through blending in of these to let customers revel in with fulfillment and permanency.

01.05 Contract AddressIf you would like to speak with a representative, pleas call any of the number below and EBL will gladly assist with any question you might have.

Phone: + 88 02 9556360 + 88 02 9558392

Fax: + 88 02 9558392

Swift Code: EBLDBDDH

Address: Head Office Eastern Bank Ltd. 10 Dilkusha C/A

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Jiban Bima Bhaban, Dhaka Bangladesh

01.06 EBL Internet Banking

EBL Internet banking application addresses the needs of small, individual and corporate account holders of the bank. This application provides a comprehensive range of banking services that enable the customer to meet most of their banking requirements over the Net.

01.07 Product and Service

Consumer & SME Banking Corporate Banking Credit Finance Human Resources Information Technology Operations

To perform these huge job tasks the Bank always needs to attract, recruit and retain large pool of employees. And to stick to the best quality it has to maintain or go through a rigorous recruiting and selection process.

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Presentation of the Findings(Both from the theoretical and Organizational perspectives)

02.00 Recruiting

It is a process of discovering of potential candidates for the actual and anticipated organizational vacancies.In other words, recruiting is a linking activity- bringing together those with jobs to fill and those seeking jobs.

02.01 Barriers of the Recruiting Success

Image of the organization Attractiveness of the job Internal politics Government influence Recruiting cost

Bank’s Practice

Image of the organizationEastern Bank thinks that the image of the bank does not do any harm on its recruiting process as it has a very good reputation in the consumer and corporate market as well as in the job market.

Attractiveness of the jobSometimes attractiveness of the job creates some problem. As the positions in Eastern Bank are so covetable and lucrative, the bank has to make short list from a large pool of applicant. This is so time consuming and of course costly to take exam of this large pool of candidates.

Internal politicsThen they don’t feel that there is significant internal politics within the bank during the recruiting process.

Government influenceThey don’t even feel any governmental influence.

Recruiting costFinally they take the recruiting as costly. And its obvious that taking exam, checking answer scripts, taking interview cost much to the bank. And its time consuming and the top level management need to get them busy for taking interview, giving decision and so on.

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02.02 Recruiting source

Internal sourceTransferPromotionSkill inventoryReferrals

External sourceAdvertisementEmployee AgenciesUniversityProfessional organizationInternet

Alternative sourceTemporary helpEmployee leasingIndependent contractor

Bank’s practiceEBL depend both on internal and external source for recruiting its employees.

02.02.01 Internal Source

TransferThey don’t take transfer as a source of recruiting. Rather they prefer promotion.

PromotionFor promoting employees they use Performance Management Process (PMP) rating. Usually the immediate superior boss does this rating (like A1, A2, B1, and B2). The individuals also place their preference in which post they want to hold. Then the Human Department analysis the data and promote the employee based on their previous performance or rating and their preferences.

Skill inventoryIt is another source for recruiting. There are some particular tasks like MIS department always recruit people mostly form IT background.

Employee Referrals/ RecommendationIt is one of the best sources for individuals who will perform effectively on the job is recommendation from a current employees. EBL prefer recommendation from its permanent employees, because the employees rarely recommend someone unless they believe that the individual can perform

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adequately. Such a recommendation reflects the recommender, and when someone’s reputation is at stake, bank expects the recommendation to be based on considered judgment.For mid level and top level management EBL usually use this source but never for the Management Trainee Officer (MTO) or fresher.

Positive sides of internal recruitingo It is a good public relation.o It builds morale.o It encourages good individuals who are ambitious.o It improves the probability of good selection, since information on individual’s

performance is readily available.o It is less costly then going outside to recruit.o Those chosen already know the organization.o When carefully planned, promoting from within can also act as a traing device

for developing middle- and top-level management.

02.02.02 External Source

In addition to looking internally for candidates, it is customary for organizations to open up recruiting efforts to the external community. This effort includes the following sources.

AdvertisementAs an external source advertisement plays a vital role. For attracting people/ applicant EBL usually advertise on the print media like newspaper and of course online advertisement is there both for entry level and midlevel position.

UniversityFor the entry level position like Management Trainee Officer (MTO) EBL sometimes advertise in the career counseling of different reputed universities. InternetIn a modern world internet has profound influence on the recruiting process. It is less costly and advertisement can be given time and again by this way.Other then this, the most important benefit is people from all over the country can see this kind of advertisement. Like there are many students from our country who study abroad but seek a prestigious job in Bangladesh after completing their study. They can see this sort of advertisement from abroad and drop their Resume.

Here EBL use both media, online advertisement (like BD jobs.com, Ptothom Alo.com etc.) and bank’s own website both for submitting resume and job circular.

Unsolicited application Other then the above mentioned source, this is another way to find applicant. There are many people who submit their Resume or CV by hand to the bank’s HR

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department. Some of them may have any relative who are already in EBL may in top positions or someone can be completely unknown. Sometimes bank use this source when they need to fill a position within very short time and of course with a minimal cost.

One thing EBL does not do is they never go to any professional organization, and or employment agencies. In fact this two tools are not that much common in our country.

02.02.03 Alternatives Another thing EBL never does is seeking any help from alternative source like temporary help, employee leasing, independent contractors.

02.03 Getting into organization Getting job is a full time activity Start early Prepare resume

Bank’s practice

Getting job is a full time activityEBL always try to let the applicants realize that getting the job in EBL is a full time activity. They will have to pass the initial screening, employment tests, interview and other gradual processes to get the job. So, obtaining a job in EBL should be the major goal of any applicant.

Start EarlyEBL always encourages the applicants to apply early in response to the advertisement since it shows the seriousness of the applicant of the desired job that they want to get.

Prepare resume

EBL wants all the job applicants to circulate information that reflects on their strengths and to send their information to the HR department in a format which is understandable and consistent with the EBL’s hiring practices.

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02.04 Global recruiting

Host country national Expatriates Recruiting regardless nationality

Host country nationalUsually EBL encourages host country’s nationals to apply for the position. They prefer host country nationals because of similarity of language, culture, efficient communication with clients and reasonable range of salary.

ExpatriatesEBL doesn’t have any problem to recruit the expatriates if they are eligible for the position

Recruiting regardless nationalityEBL doesn’t practice any recruiting policy that includes nationality.

To finish the entire recruitment process EBL just needs only two weeks for the contractual job employees.But it takes almost two months to finish all the stage and formalities up for the permanent employees as it is more strict process then the contractual.

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03.00 Selection

The selection process is composed of steps, each of which provides decision makers with information that will help them predict whether an applicant will be a successful job performee. Successful selection activities entail a lot of careful planning and careful thought.

Selection process

Failed to meet minimum qualification

PassedFailed job specification or completed application

Passed

Failed test

Failed to impress interviewer/ Passed passed meet job expectation

PassedPassed

Problem encountered

Passed

Passed

Unable to perform Essential Job Element

Passed

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Initial screening

Completed application

Background investigation if required

Comprehensive interview

Employment test

Medical/ physical examination if required

(conditional job offer made)

Permanent job offer

Conditional Job Offer

Reject Applicant

03.01 Initial ScreeningThis is the first step in the selection process whereby job inquiries are sorted. It has two steps:

o Screening inquirieso Screening interviews

Bank’s practiceEBL apply both screening inquiries and screening interviews to eliminate some candidates before interview session based on the job description and specification after reviewing their application forms. They do it because of the candidates’ inadequate experience, education or study break. Screening interviews help EBL to reduce their cost of taking the interview as well as to identify a salary range. EBL weighs negative information of the applicant. For midlevel positions, EBL also values special qualifications, characteristics and experience of the candidates.

03.02 Completed Application Forms

o General Formo Weighted Formo Successful Application

Bank’s practice

General FormGeneral forms are the company-specific employment form used to generate specific information that the company wants. EBL use general application form for the online application

Weighted FormIt’s a special type of application form that uses relevant applicant information to determine the likelihood of job success. EBL use this application form to differentiate between potentially successful and unsuccessful job performers.

Successful ApplicationTo be competitive and become accustomed with the modern world and economy, EBL’s application items are being changed over the time to be validated for each job. Their applications items are being continuously reviewed and updated.

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03.03 Employment Test

o Performance simulation testo Work samplingo Assessment center

Bank’s practiceUsually the tests are held in Human Resource department of the bank when they recruit only for the position of mid level employees.Otherwise for Management Trainee Officer (MTO) the test is held under the close supervision of Institute of Business Administration (IBA).

Performance simulation testPerformance simulation tests are work sampling and assessment centers evaluation abilities in actual job activities. To gain the specific behaviors necessary for doing the job, EBL uses Performance simulation test..

Work samplingIt’s a selection device requiring the job applicant to actually perform a small segment of the job. EBL uses Work sampling to give the candidate an opportunity to show his/her effectiveness in the specific portion of the job. They give case study during their exam.

Assessment centerAssessment centers are more elaborate set of performance simulation test which are designed to evaluate a candidate’s managerial potential. EBL doesn’t practice assessment centers. Here, the EBL authority compares the result of admission test, management’s expectation and real job out put of the candidate.

03.04 Comprehensive InterviewsIt is a selection device used to obtain in-depth information about a candidate such as assessing one’s motivation, values, ability to work under pressure and ability to “fit in” with the organization.Usually a combination of all- top level management, immediate supervisors, colleagues are there in the interview board. Comprehensive interview has three parts:

o Interview effectivenesso Impression managemento Behavioral interview

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Bank’s practice

Interview effectivenessEBL design their interviews to create a difficult environment in which the applicant is “put to the test” to asses his/her confidence levels. EBL also discloses the other motivational factors rather than the base salary in the interview session.

Impression managementEBL also value the term impression management. It influences the candidate’s performance evaluations by portraying an image desired by the appraiser. Sometimes, the management allows salary negotiation.

Behavioral interviewEBL practice behavioral interview sometimes to observe the candidates not only for what they say but how they behave under stress and other situations. EBL, for this, marks the nonverbal communication. EBL uses behavioral interview mainly for the MTO and Mid-level positions.

03.05 Background InvestigationIt’s the process of verifying information provided by the candidates.

Bank’s practice

EBL usually does not investigate applicants’ background, unless there is any particular prior or post notice. It could be negative police verification/ report any order from court or something like this.

03.06 Conditional Job OfferIt’s a tentative job offer that becomes permanent after certain conditions are met.

Bank’s practiceEBL uses this term in different way. Other then directly stating this as conditional job offers they term it as contractual job. If EBL management are satisfied and positively assured of the candidate’s background, they offer a conditional job offer to the candidate and give him/her a chance to make the job permanent by showing good performance.In this offer, EBL also discloses the salary range for the position.

Employees are given training where they have lackings and to make them understand the organization’s culture, how to use the premises and so on.

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03.07 Medical ExaminationMedical/Physical Examination is an examination to determine an applicant’s physical fitness for essential job performance.

Bank’s practiceBefore giving the permanent job offer, EBL takes the physical exam that show whether the minimum standards of health exist in candidates to enroll in company’s health and life insurance programs.

03.08 Permanent Job OfferEmployees who perform successfully in the preceding steps are considered eligible to receive the permanent job letter by an HRM representative.

Bank’s practiceThe decisions of employment are actually made by the HR department of EBL. After all the necessary steps and completed especially after the comprehensive interview the successful applicants are given the job offer letter.

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Conclusion

Being one of the large private banks Eastern Bank Ltd. is providing very good job opportunity with competitive salary. By their excellent service in 34 branches in five divisions, they are always contributing to minimize the unemployment as well as encouraging the talent young generation to accept newer and newer challenge day by day.

Not only proving job, EBL arrange training, in home and abroad for the betterment of its employees. This increase organizational commitment, less turnover and of course increase productivity/ in other words profit.

Performance based promotion make the employees more energetic, enthusiastic, sincere, creative and hardworking, and dedicative to the customer and to the bank particularly.

To increase the motivation of the employees EBL often arrange classical musical show (Sur Sondha) at Bengal Gallery/ Shilpaloy at Dhanmondi, Dhaka.

Nonetheless, its beyond explanation that they are also helping to increase our GDP, promoting international trade like export and import and so on.

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Appendix

Human Resource ManagementBy Devid A. Decenzo and Stephen P. Robbins

Human Resource ManagementBy Fisher

http://www.ebl-bd.com/

Annual report (Eastern Bank Ltd. 2007-8)

Questionnaire

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http://www.ebl-bd.com/

HRM-301 Term Paper

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