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Transcript of Project Report on HR Activity by Yasir Sabab
-
Author: Yasir Sabab
United International University
Project Report On
HR Activity of Social Islamic Bank Limited
(SIBL)
AUTHOR
Yasir Sabab
School of Business & Economics,
United International University.
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Author: Yasir Sabab
Letter of Transmittal
20th April,2014
Farhana Rashid
Asst. Professor. Faculty of Business and Economics
Subject: Request to accept my project on An Analysis of Human Resource Management
Activity of Social Islamic Bank Limited (SIBL)
Dear Madam,
With respect and honor submission, I want to inform you that, I am a student of BBA of
United International University. I am submitting my project on An Analysis of Human
Resource Management Activity of Social Islamic Bank Limited (SIBL)
I have put my best effort to make this report a successful one. It has been joyful &
enlightening experience for me to prepare this report. However this has been obviously a
great source of learning for me to conduct similar types of studies in the future.
It gives us pleasure to inform you that I have completed my project under your friendly and
kind hearted direct supervision. Now I have placed the project before you for your approval. I
hope my project will satisfy you.
Thank you.
Sincerely yours,
yasirsabab ...............................................
Yasir Sabab
United International University
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Author: Yasir Sabab
Declaration by the student
I do hereby declare that the project report titled
An Analysis of Human Resource Management Activity of Social
Islamic Bank Limited (SIBL)
Submitted in partial of the requirement for the degree
Bachelor of Business Administration (BBA)
I also declare that, this paper is my original work and not submitted for the aware of any
other Degree, Diploma and other similar title or prizes.
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Author: Yasir Sabab
Declaration by the student
To Whom It Mat Concern
This is to certify that the project report on An Analysis of Human Resource Management
Activity of Social Islamic Bank Limited (SIBL) for the degree Bachelor of Business
Administration (BBA) major in Human Resource Management from United International
University carried out by Yasir Sabab, under my supervision. No part of the project report
has been submitted for any degree, diploma, title, or recognition before.
I wish him very success in his life.
Farhana Rashid,
Assistant Professor,
School of Business,
United International University.
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Author: Yasir Sabab
Acknowledgement
To prepare this project report various resources, information and input were collected and
used.
First of all, I would like to convey my sincere appreciation to the almighty Allah for giving
me the strength & the ability to finish the task within the planned time.
I would also like to express my sincere & immense gratitude to my supervisor, Farhana
Rashid, Assistant Professor, School of Business & Economics, United International
University, I am deeply indebted to his wholehearted guidance to me during the report
writing period and her inspiration and encouragement has made me confident and self
dependent. Her tireless efforts and appreciation has greatly contributed to my report. Also her
valuable suggestion & guideline helped me a lot to prepare the report in a well-organized
manner.
I am also grateful to HR Dept. of SIBL for assist me to gather information which can make
easier for my report writing. My sincere gratitude also goes Md. Tanvir Khan ( Assistant
Vice President Information Technology Division), Mohammad Kausar Azam Bhuiyan (
Senior Officer Human Resources Division), S.M.Al-Farehan ( Officer - Human Resources
Division).
I am also thankful to all of the other officers of Social Islami Bank Limited, who helped me
during the preparation of the study by giving their suggestions, assistance & supply of
information, which were valuable to me. Their helping hand supported me to complete my
report successfully.
Finally, I want to give my thanks to my family & friends , who have been the pillar of my
strength and the strong supporter of my success.
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Author: Yasir Sabab
Executive Summary
Social Islami Bank Limited is the most renowned Islamic Shariah based bank of Bangladesh.
They run their business by the values, belief and their Islamic culture. My aim is to find out
the HR activities of the employees through the conversation, observing and analysis.
They run their business by offering the full range of banking and investment services for
personal and corporate customers, backed by the latest technology and a team of highly
motivated officers and staffs and their goal is to focus the Customer, Integrity and Honesty,
Quality, Teamwork, Respect for the Individual, Responsible Citizenship, Transparency and
Accountability, Environmentally Conscious, High Morale.
From the bank I have collected information about the HR Activity like: Recruitment and
Selection policy, Payroll system, Employee Motivation, Training and Development system,
Compensation policy, Employee Welfare, Performance Management system and the
satisfaction of the employees by conducting a survey on SIBL Headoffice which is located in
Motijheel and one branches of SIBL which is located in Panthapath and.
I surveyed on 15 employees in the Head office and 12 employees of Panthapath branch and
based on the research result I briefly discussed here the differences between those branches to
complete my project report. After conducting the survey, I collected the information and
analyze the data and conduct the report which is discussing briefly in this report.
I have given my full effort for making the report effectively. Anyone can get a clear idea or
conception about this HR Activities on Social Islami Bank Limited from Bangladeshi
context. I tried to provide all the essential information over here. This report helped me to
implement my analytical knowledge into practical and realistic environment.
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Author: Yasir Sabab
Table of Content
Chapter
Content Name Page No.
Introductory Part
Introduction
1-32
Origin of the report 1
Objective of the report
1
Scope of the report 1
Methodology 2
Historical Background of SIBL 2-8
Literature Review 8-30
Limitation
31
Gantt Chart 32
Company Overview
Chapter One Introduction
34-61
1.1 Company Profile
34-35
1.1.i Code of Conduct & Ethical Principles
35-36
1.1.ii Ethical Principles of SIBL 36-37
1.1.iii Board of Directors
37-38
1.1.iv Company values 38-39
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Author: Yasir Sabab
1.1.v SIBL Subsidiaries 39-41
1.2 Company Vision 41
1.3 Company Mission 42
1.4 Strategic Objectives 42
1.5 Commitments 43
1.6 Overall Operational goals 44
1.7 Organizational Hierarchy
45
1.8 Organizational Activities 46
1.8.i Products & Services
46
1.8.i (a) Investment Products 48
1.8.i (b) Deposit Products 49-52
1.8.i (c) Cards 52-57
1.8.i (d) E-banking 57-60
1.9 Corporate Social Responsibility
(CSR)
61
Chapter Two Analysis & Interpretation
2.1 Analysis 63
2.1.i Analysis on HR activities 63
2.1.i (a) Employee Motivation 63-64
2.1.i (b)
Training & Development
65-68
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Author: Yasir Sabab
2.1.i (c)
Compensation & Benefit Policy
68-72
2.1.i (d) Performance Management
72-73
2.1.i (e) Recruitment and Selection 74-82
2.1.i (f)
Employee Welfare 82-87
2.1.ii Trend Analysis 87-90
2.1.ii (a) Performance of the Bank
90-92
2.1.ii (b) Capital Structure of SIBL
92-96
2.1.iii SWOT ANALYSIS
97-99
2.1.iv COPE Analysis 100
2.2 Interpretation 101-115
Chapter Three Findings, Recommendation &
Conclusion
3.1 Findings
117
3.2 Recommendation 118-119
3.3 Conclusion
119
Reference 120-122
Appendix 123-126
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Author: Yasir Sabab
Introduction
Origin of the report
I am Yasir Sabab a student of BBA in United international University. I have done my
major in Human Resource Management. My respectable instructor Farhana Rashid as
assigned me a project which is a requirement to complete my BBA. And to fulfill this
requirement the topic that is given to me is HR Activity of Social Islamic Bank
Limited (SIBL).
Objective of the report
The main objective of the report is to understand the application of hr practices in a
bank. And for this reason I have chosen Social Islamic Bank Limited (SIBL) as my
topic subject. The specific objectives of this report is
To identify the motivational forces of this bank
To identify the training and development areas of this bank
To find out the performance management system of this bank
To get a clear idea about the employee welfare issues of this bank
Identify the compensation management of this bank
Identify the selection and recruitment process of this bank.
Scope of the report
I have chosen Social Islamic Bank Limited (SIBL) as my topic as it is one of the
biggest bank in Bangladesh. SIBL has been running its activities through its 72
branches all over the country. So they have to maintain their HR activity in such a
manner so that so branches can suffer in HR related problem. And to know this
information there must need a key employee from HR in this bank. And as have
managed this so there is a huge scope of working in this topic.
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Author: Yasir Sabab
Methodology
As my topic is related with the HR activity so different data and information are
required to achieve the goal of this report. I depended on the two sources to collect
information. From this source I collected various types of information to complete my
report.
For my report, I collected and used the data from two sources:
Primary Data:
Mainly, I collect the data from the employees of the bank about
their HR related information and surveyed on them.
Secondary Data:
I collect some relevant secondary data from different sources like:
websites, different HR related books, Journals and the Annual
Report 2010 of Social Islami Bank Limited.
I use excel for calculation, different types graphical methods for
analysis and interpretation.
I use diagram, process chart by using ms word chart option, online
images, etc.
Historical Background of SIBL:
Social Islami Bank Limited, a second-generation Bank, started its journey on 22nd
November, 1995 with the aim of working together for a caring society. The Bank
has never deviated from the aim. Rather, with the passage of time, our efforts are just
reinforced and invigorated against all odds. With a renewed zeal we strive for
continuous excellence in both our activities and services. Honesty, transparency,
efficiency, accountability, reliability, innovation, flexibility, security and technology
these are the values of SIBL. By upholding and adhering to these values, we are
always vigilant to obtain the trust of our stakeholders.
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Author: Yasir Sabab
SIBL now has 86 Branches all over the country with two subsidiary companies -
SIBL Securities Ltd. and SIBL Investment Ltd. 10 new Branches were opened in
2012 to expand our network and bring more people under the coverage of banking
services. The Bank has set its strategy to convert all its banking activities from
traditional branch-based banking system to an ideal blending of both Centralized
Processing Unit (CPU) and effective operation of all Branches.
GENERAL BANKING AREA
Financial institution intermediary that mediates or stands between ultimate borrowers
and ultimate lenders is knows as financial institution. Banks perform this function in
two ways- taking deposits from various areas in different forms and lending that
accumulated amount of money to the potential investors in other different forms.
General banking department aids in taking deposits and simultaneously provides some
ancillaries services. General banking is the front-side banking service department. It
provides those customers who come frequently and those customers who come one
time in banking for enjoying ancillary services. In some general banking activities,
there is no relation between banker and customers who will take only one service
form bank. On the other hand, there awesome customers with who banks are doing its
business frequently. SIBL General banking is divided into six sections:
1. Account opening section.
2. Bills and clearing section.
3. Remittance section.
4. Cash section.
5. Locker Service.
6. Closing of an account.
The Banks professional focus is always on customers satisfaction and that is why
Customer Care Desk has already been installed in our key Branches. In phases One
Stop Service will be introduced for our privileged & fast track clients and also for the
women clients. Social Islami Bank Limited (SIBL) is a banking company registered
under the companies Act 1994 with its head office in 15 Dilkusha C/A, Dhaka-1000.
The bank operates as a scheduled bank under a banking license issued by the
Bangladesh Bank, Central Bank of the country. The Bank started its operation from
22, November 1995.
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Author: Yasir Sabab
SIBL is a capitalized new generating Bank with an authorized capital and paid up
capital of Taka 585 million in 2007 and also 585 million respectively as of December
2006.The bank has been entrusted with the responsibility of undertaking various steps
related to the development of the countrys commercial, industrial and agricultural
sectors. The banking sector of a country is called the economic barometer of the
country. As a pioneer commercial bank in the private sector in Bangladesh, Social
Islami Bank provides considerable financial helps to the business sector that imports
industrial goods and/or exports excess production outside the country for profit. SIBL
capital adequacy is a very vital thing for each and every bank. SIBL maintained and
achieved strong position in all key areas of operations despite challenge in 2011.
Capital of the bank was tk.12.60 crore at the very inception, and by the year 2011 it
has increased to tk. 953.45 crore.
Total deposit of the bank stood at tk. 6685.25 crore and total assets stood at tk.
8440.62 crore as on 31 December, 2011 which indicate a growth of 49.05%
respectively over that of the previous year. The bank achieved 46.97% growth in
investment with a total investment portfolio of tk. 5390.86 crore in 2011 compared to
3668.03 crore in 2010. Successful issuance of @ 1:1 Right Share in the year 2011 has
resulted in an effort towards raising the paid up capital to Taka 2987.81 million and
thus capital of the bank stood at Taka 9534.52 million at the year end 2011.
The Ownership Pattern
This is a private sector commercial Bank providing comprehensive range of banking
services. The bank is owned as follows: Promoters 50%Government 5%Public 45%At
present the Bank has an amount of Tk.4000.00 million of Authorized Capital and
Tk.585.00 million of Paid-up Capital.
Human Resource
There is no alternative to skilled and trained manpower in service Industry. Bearing
this in mind the well educated, promising and honest workers are being appointed and
trained. Bank has given top priority to develop skilled manpower and introduce them
with modern technologies with the purpose of developing quality customer services.
The Bank has undertaken program to train up its employees of all strata at its own
Training Institute. A highly experienced person was appointed as Director (Training)
of the Institute in the year 2001 with the task of formulating various training modules.
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Author: Yasir Sabab
Steps are being taken to shift the Institute to separate premises for facilitating training
activities. Side by side, both inland and foreign training also imparted during the year
as usual.
Training Institute
Well educated peoples are needed to achieve the objectives of a firm. With a view to
build enthusiastic and skilled work force, Social Islami Bank Training Institute was
established in 24th
October, 1996 at Shyamoli, Dhaka. Every year the Institute trains
sufficient number of employees. By the side of the new employee/officer, it is
possible to trained SIBLs existing employee/officer. There is a library in SIBL. There
is about 2thousand books remain in this library. Accounting, Management, Marketing,
and Computer related books are in this library. In 2007, 1383 officer and no-officer
was trained.
Foreign Correspondents of SIBL
In order to gain maximum advantage from Foreign Exchange related business, the
Bank has entered into correspondent relationship with almost all major 122 Banks of
109countries of the world like Standard Chartered Bank, American Express Bank
Limited, HSBC, HBZ Finance, Mashreq Bank PSC, Dresdner Bank AG and with
local banks in Pakistan, India, Nepal and Bhutan etc with whom we have advising,
reimbursing and confirming arrangement.
Overseas Operations of SIBL
Social Islami Bank has set up joint venture Exchange Company named Gulf Overseas
Exchange Co. Ltd, in Oman contributing 25% of its paid up capital.
The present paid up capital of the company is Riyal Omani 1, 82,000.00. The
Chairman of the company is the ex-minister of the government of Oman. The
exchange company, established in 1985,now has three branches in Oman and is being
managed fully by officials of SIBL. The company is running in profit. SIBL is also
exploring possibilities of opening branches in the Middle East, Switzerland and USA.
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Author: Yasir Sabab
Rural Credit Program
Agriculture is the main driving force of economy in Bangladesh. And the whole
economic growth of the country depends on the development, modernization and
investment of money in this connection. As a non-Government financial institution
SIBL has been actively participation in rural credit program in the economic activities
for large population of the country since 1992. SIBL has been working intensively in
collaboration with Barindra Multipurpose Development Authority by conducting the
Rural Credit program particularly in Rajshahi, Naoga, Chapainowabgong, and the
northern part of the country in general. In the last 10 years bank has distributed the
credit for Tk.69.85million.
Shariah compliance
SIBL is a fully Islami Shariah-based Bank and always adheres to compliance of
Islami Shariah principles. We know it well that banking is a service-oriented business
and our clients/accountholders bank with us as we claim to be an Islamic Bank. Thus,
we always try to follow the teachings of Islam in our activities to earn the blessings of
Almighty Allah as well as to strengthen the trust of our clients/accountholders. The
Bank has a Shariah Supervisory Committee consisting of prominent Islamic Scholars,
Economists and Lawyers to advise the Management on Shariah matters relating to the
business operations. Branches are being regularly audited by the Shariah Inspection
teams. Necessary guidance with required rules and procedures based on Islami
Shariah principles are being adopted as per Bangladesh Bank guidelines and advice of
the Banks Shariah Supervisory Committee.
SIBL serve the customers better
SIBL has always tried to bring excellence in everything: from service delivery to
products. Breaking out of the traditional banking practices SIBL has emerged to its
customers in a new form with contemporary services. We are working relentlessly to
make our services modern, up-to-date and available to the general people of our
country. In continuation of our efforts, earlier we introduced SIBL Visa Islamic Credit
Card which can be used at home & abroad and Zameel Debit Card for our valued
accountholders. We are continuously serving our valued clients round the clock for
the last three years with our Visa Card products. Our valued customers are using
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Author: Yasir Sabab
SIBL Visa Islamic Dual Currency Cards for shopping and paying Hotel and
Restaurant bills frequently during foreign travel whereas local cards are used within
Bangladesh. In the year 2012, we have enriched our card product line with Visa
Electron, Hajj Card, Gift Card and Travel Card. Very soon we are going to introduce
different types of VISA pre-paid cards viz. Student Card, Tillottama (specially for
ladies), Remittance Card, etc.
FUCNTIONS OF SIBL
Mobilization of idle resources of the country by accepting Deposits from the
general public.
Granting Loans and Advances to the individual firms and companies for
activating and developing trade, commerce and industries and other productive
activities in the country.
To give facilities to the client and shareholders in a systematic way.
Give encouragement to the people for savings.
To increase investment.
To make easy transfer of foreign currency.
To identify consumers demand and fulfill their demand by supplying money.
To improve economy by borrowing financial facility.
SIBL is running successfully and for its good deposit performance the bank occupies
2nd positioning the Islamic Banking Sector. Taken all in all, it can be safely said that
SIBL action program is directed towards development of an authentic participatory
Economy beyond Market Economy. The family empowerment credit program of
Social Islami Bank is gaining ground at the grass root field level in Bangladesh.
Family Empowerment microcredit and micro enterprises program must be designed in
a manner so as to make
a. finance,
b. production,
c. marketing,
d. trading,
e. local specific survey and
f. research as well as moral integrity in one package.
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Author: Yasir Sabab
In SIBL approach, credit conveys the totality in life and clearly linked to social
context and cultural setting in conformity with Shariah. There is a better chance in
provision for social subsidy. SIBL takes this opportunity to their valued clients,
patrons, well wishers, correspondents and the shareholders for their support and
patronization extended during the year under review.
Literature Review
Human Resource
Human resource management (HRM, or simply HR) is a function in organizations
designed to maximize employee performance in service of their employers strategic
objectives. HR is primarily concerned with how people are managed within
organizations, focusing on policies and systems. HR departments and units in
organizations are typically responsible for a number of activities, including employee
recruitment, training and development, performance appraisal, and rewarding (e.g.,
managing pay and benefit systems). HR is also concerned with industrial relations,
that is, the balancing of organizational practices with regulations arising from
collective bargaining and governmental laws. [1]
"Human resource management is a process consisting of four functions-acquisition,
development, motivation and maintenance of human resources." by Gary Dessler. [1]
HR is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. In startup companies, HR's duties may be performed
by trained professionals. In larger companies, an entire functional group is typically
dedicated to the discipline, with staff specializing in various HR tasks and functional
leadership engaging in strategic decision making across the business. [2]
New hiring not only entails a high cost but also increases the risk of the newcomer not
being able to replace the person who was working in that position before. HR
departments also strive to offer benefits that will appeal to workers, thus reducing the
risk of losing knowledge. [2]Human resources is the set of individuals who make up
the workforce of an organization, business sector, or economy. "Human capital" is
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Author: Yasir Sabab
sometimes used synonymously with human resources, although human capital
typically refers to a more narrow view (i.e., the knowledge the individuals embody
and can contribute to an organization). Likewise, other terms sometimes used include
"manpower", "talent", "labour", or simply "people". [3]The professional discipline and
business function that oversees an organization's human resources is called human
resource management (HRM, or simply HR). HR pure and simple is the
implementation of a strategy to drive innovation, productivity and share price through
mobilizing the workforce towards excellence. As David Ulrich (recognized thought
leader in HR) states HR must give value or give notice.The label of "human
resources," now the norm in the profession, designates a broader involvement and
strategic role in the organization than "personnel," which most people associated with
just hiring. [4]The process of hiring and developing employees so that they become
more valuable to the organization. Human Resource Management includes conducting
job analyses, planning personnel needs, recruiting the right people for the job,
orienting and training, managing wages and salaries, providing benefits and
incentives, evaluating performance, resolving disputes, and communicating with all
employees at all levels. [5]
Importance of Human Resource
In reality, HR functions must be conducted for every companyno matter how small
or large. So properly framed, the question to ask is:
For example, many organizations find that its more convenient, and more cost
effective, to outsource transactional services such as payroll, tax, and benefits
administration, while partnering with a strategic HR partner to deliver high value
consultation. [6]An organization cannot build a good team of working professionals
without good Human Resources. The key functions of the Human Resources
Management (HRM) team include recruiting people, training them, performance
appraisals, motivating employees as well as workplace communication, workplace
safety, and much more. The beneficial effects of these functions are discussed here:
a. Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR
managers come up with plans and strategies for hiring the right kind of people.
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Author: Yasir Sabab
They design the criteria which is best suited for a specific job description. Their other
tasks related to recruitment include formulating the obligations of an employee and
the scope of tasks assigned to him or her. Based on these two factors, the contract of
an employee with the company is prepared.
b. Performance Appraisals
HRM encourages the people working in an organisation, to work according to their
potential and gives them suggestions that can help them to bring about improvement
in it. The team communicates with the staff individually from time to time and
provides all the necessary information regarding their performances and also defines
their respective roles.
c. Maintaining Work Atmosphere
This is a vital aspect of HRM because the performance of an individual in an
organisation is largely driven by the work atmosphere or work culture that prevails at
the workplace. A good working condition is one of the benefits that the employees
can expect from an efficient human resource team.
d. Managing Disputes
In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a
scenario, it is the human resource department which acts as a consultant and mediator
to sort out those issues in an effective manner. They first hear the grievances of the
employees. Then they come up with suitable solutions to sort them out.
e. Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a great
extent. They organise business meetings, seminars and various official gatherings on
behalf of the company in order to build up relationships with other business sectors.
Any organisation, without a proper setup for HRM is bound to suffer from serious
problems while managing its regular activities. For this reason, today, companies
must put a lot of effort and energy into setting up a strong and effective HRM. [7]
The main goals / responsibilities of HRM are:
To retain low employee turnover rate by inspiring people to work for the company
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Author: Yasir Sabab
To attract new employees
To contribute to employee development
To achieve these goals, Human Resources Management trains and motivates the
employees by communicating ethical policies and socially responsible behaviour to
them. In doing so, it plays a significant role in clarifying the organization's problems
and providing solutions, while making employees working more efficiently.
New challenges arise even now for the organization, and it is certain that new
challenges will never cease to emerge. Therefore, the use of proper Human Resources
techniques is a really powerful way for organizations to overcome these challenges,
and to improve not only their quantitative goals but also their organizational culture,
and their qualitative, cognitive aspects. [8]
What are the Activity of Human Resources?
There are so many activities Lake:
Payroll System.
Employee relations.
Employee communications.
Internal communications.
Employee Motivation.
Training and Development.
Selection & Hiring.
Optional group benefits.
Recordkeeping.
Mandated benefits.
Performance Management.
Employee Welfare.
Special Projects.
Professional Advice.
Management.
Compensation.
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Author: Yasir Sabab
Now I am going to discuss some important activities:
Employee Motivation
An individual's motivation is influenced by biological, intellectual, social and
emotional factors. The performance that employers look for in individuals rests on
ability, motivation, and the support individuals receive; however, motivation is often
the missing variable. Motivation is the desire within a person causing that person to
act. People usually act for one reason: to reach a goal. Thus, motivation is a
goaldirected drive, and it seldom occurs in a void. The words need, want, desire, and
drive are all similar to motive, from which the word motivation is derived.
Understanding motivation is important because performance, reaction to
compensation, and other HR concerns are related to motivation. Internal and external
factors that stimulate desire and energy in people to be continually interested in and
committed to a job, role, or subject, and to exert persistent effort in attaining a goal.
[9]
Motivation results from the interactions among conscious and unconscious factors
such as the
(1) intensity of desire or need,
(2) incentive or reward value of the goal, and
(3) expectations of the individual and of his or her significant others.
"Psychological forces that determine the direction of a person's behavior in an
organization, a person's level of effort and a person's level of persistence." G. Jones
and J. George from the book "Contemporary Management." [9]
The following are the features of motivation :
1. Motivation is an act of managers
2. Motivation is a continuous process
3. Motivation can be positive or negative
4. Motivation is goal oriented
5. Motivation is complex in nature
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Author: Yasir Sabab
6. Motivation is an art
7. Motivation is system-oriented
8. Motivation is different from job satisfaction
Importance employee motivation:
Motivation is important in getting and retaining people. Motivation tools act as the
glue that links individuals to organizational goals, In addition, make individuals go
beyond the job and be creative. Motivation plays a critical role in achieving goals and
business objectives and is equally as important for companies that work in a team-
based environment or in a workplace comprised of workers who work independently.
When people aren't motivated, they become less productive, less creative, less of an
asset to your company. Now more than ever, we need motivated employees. The fact
is employee motivation is directly linked to business profits, and the more self-
motivated your employees are, the more differentiated and successful you will be as a
business. [9]
Motivating factors:
Motivating factors are drivers of the human behavior related to the intrinsic nature of
the work, but not necessarily to the surrounding circumstances or environment.
Motivating factors include achievement, advancement, autonomy, personal growth,
recognition, responsibility, and the work itself. There are some factors that must be
present in your workplace for your employees to be happy and motivated at work.
Your employees need respect, to be members of the in-crowd, to impact decision
making about their jobs, to have the opportunity to grow and develop, and access to
reasonable leadership. The following describe what employees want from work
Respect is the fundamental right of every employee in every workplace. If people feel
as if they are treated with respect, they usually respond with respect and dignified
actions. Part of respect is praise and feedback so people know how they are doing at
work.Employees want to learn new skills, develop their capabilities, and grow their
knowledge and careers. Making developmental opportunities available to each
employee demonstrates your commitment to helping them develop their careers. They
appreciate this.
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Author: Yasir Sabab
Employees want to have an impact on decisions that are made about their jobs.
Employee involvement and employee empowerment help to create engaged
employees willing to put forth their discretionary energy for the business.Employees
do want leadership. They want a sense of being on the right track, going somewhere
that has been defined and is important. If these those factors existed in ever
workplace, productivity, motivation, and happiness would soar. [10]
Compensation System:
Compensation is the total amount of the monetary and non-monetary pay provided to
an employee by an employer in return for work performed as required. Compensation
also includes payments such as bonuses, profit sharing, overtime pay, recognition
rewards and checks, and sales commission. Compensation can also include non-
monetary perks such as a company-paid car, stock options in certain instances,
company-paid housing, and other non-monetary, but taxable, income items. [11]
Compensation (also known as Total Rewards) can be defined as all of the rewards
earned by employees in return for their labour. This includes:
Direct financial compensation consisting of pay received in the form of wages,
salaries, bonuses and commissions provided at regular and consistent intervals
Indirect financial compensation including all financial rewards that are not included
in direct compensation and understood to form part of the social contract between the
employer and employee such as benefits, leaves, retirement plans, education, and
employee services
Gary Dessler in his book Human Resource Management defines compensation in
these words "Employee compensation refers to all forms of pay going to employees
and arising from their employment." [12]
BENEFITS:
Employees today are not willing to work only for the cash alone, they expect 'extra'.
This extra is known as employee benefits. Also known as fringe benefits, Employee
benefits are non-financial form of compensation offered in addition to cash salary to
enrich workers lives.
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Workers receive benefits regardless of their performances. Employee benefits as a
whole have no direct affect on employee performance, however, inadequate benefits
do contribute to low satisfaction level and increase absenteeism and turnover in
employees (DeCenzo and Robbins; 2007). So you would have to carefully design
your benefit package. Your package may include a cell phone to each worker, taking
them to a training workshop or seminar, giving them a day or two off every month
and so on. While deciding on the benefits package, do consider the associated costs.
[13]
ADVANTAGES OF COMPENSATION & BENEFITS
Advantages to Your Boutique:
A well designed compensation and benefits plan helps to attract, motivate and retain
talent in your firm (which is my Wear). A well designed compensation & benefits
plan will benefit your boutique in the following ways:
1. Job satisfaction: Your employees would be happy with their jobs and would love
to work for you if they get fair rewards in exchange of their services.
2. Motivation: We all have different kinds of needs. Some of us want money so they
work for the company which gives them higher pay. Some value achievement more
than money, they would associate themselves with firms which offer greater chances
of promotion, learning and development.
3. Low Absenteeism: Why would anyone want to skip the day and watch not-so-
favorite TV program at home, if they enjoy the office environment and are happy with
their salaries and get what they need and want?
4. Low Turnover: Would your employees want to work for any other boutique if you
offer them fair rewards.
Advantage to Your Employees:
1. Peace of Mind: your offering of several types of insurances to your workers
relieves them from certain fears. Your workers as a result now work with relaxed
mind.
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2. Increases self-confidence: Every human being wants his/her efforts to get
acknowledgment. Employees gain more and more confidence in them and in their
abilities if they receive just rewards. As a result, their performance level shoot up. [14]
Steps in Compensation Administration
The purpose of compensation administration is to compensate the employees
satisfactorily and equitably and achieve the organizational goals effectively.
Organizations usually develop their own compensation system for determining and
computing the compensation schemes of the employees. An effective compensation
programme involves the following steps:
(i) analysis of the job, (ii) evaluation of the job, (iii) developing the pay structure, (iv)
survey of wages and salary, (v) pricing of the job, and (vi) compensation revision and
control. We shall now discuss these phases involved in compensation administration.
The compensation and benefits department is responsible for the personnel expenses
budget of the organization. The compensation and benefits department sets the
standards for the individual salary increase, the mass salary review and the rules for
the bonus payout as the organization keeps the financial stability and the planned
personnel expenses budget is kept. The compensation and benefits designs new
adjustments to the compensation strategy and the compensation policy as the
organization does not lose its competitive advantage on the job market. [15]
Recruitment and Selection:
Terms that refer to the process of attracting and choosing candidates for employment.
The personnel department of a larger business will often have detailed recruitment
and selection policies that need to be followed by those responsible for hiring new
employees. Recruitment is one of the most important parts of HR, as if you get this
process right youre halfway there, as you have minimised any potential employees
issues that can arise in future. However, if the recruitment is not done effectively then
this will have wide reaching implications for the organisation long term. The latest
statistics show that to replace an existing member of staff it will cost you two and a
half times the employee's salary. Therefore, it is important that the HR is involved in
the entire recruitment and selection process. [16] Recruiters play an important role in
the success of an organization. They essentially act as a filter that -- when used
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properly -- only selects the best candidates. In a constantly changing business world,
companies need to hire people who are adaptable, loyal, knowledgeable, dependable
and confident, thereby creating a foundation for success. [17]
Cost
Cost is a major reason why effective recruitment and selection is important. There are
many ways in which poor recruitment practices can result in financial losses.
Retention
Improper recruitment and selection practices can often result in high turnover or
involuntary separations. If a recruiter is not careful when analyzing resumes and
conducting interviews, she may hire an employee with a weak work ethic or a
tendency to move quickly from one job to the next -- "job hopping." Recruiters should
pay close attention to the lengths of time at each previous job and carefully check
references. Another so-called "red flag" is a gradual decrease in responsibility.
Loyalty and Productivity
Loyalty and productivity are linked. Employees who feel dedicated to the
organization will work hard to help it succeed. With this in mind, recruiters must ask
questions that provide information about a candidate's strengths and weaknesses.
Legal Issues
Discrimination is a serious concern among recruiters. If discriminatory hiring
practices can be proven, this could result in serious harm, both financially and in
terms of reputation. The United States Department of Labor forbids discrimination
based on race, color, national origin, sex, disability, religion, political affiliation,
religion or age. Steps can be taken to avoid such complications. First, advertise only
the essential requirements for the position. Provide an accurate job description, listing
only the position name and the specific duties involved. Things such as language
proficiency or physical capabilities should not be listed unless they are absolutely
essential for the role. Use the same questions for every candidate and try to have more
than one recruiter present during the interview. Careful notes must be taken so that
recruiters can justify hiring or not hiring the particular candidate. [18]
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In order to increase efficiency in hiring and retention and to ensure consistency and
compliance in the recruitment and selection process, it is recommended the following
steps be followed:
Step 1: Identify Vacancy and Evaluate Need
Recruitments provide opportunities to departments such as aligning staff skill
sets to initiatives and goals and planning for departmental and individual
growth. Although there is work involved in the hiring process, proper planning
and evaluation of the need will lead to hiring the right person for the role and
team.
Step 2: Develop Position Description
A position description also referred to as a job description is the core of a
successful recruitment process. From the job description, interview questions,
interview evaluations and reference checks questions are developed.
Step 3: Develop Recruitment Plan
Each position requires a documented Recruitment Plan which is approved by
the organizational unit. A carefully structured recruitment plan maps out the
strategy for attracting and hiring the best qualified candidate and helps to
ensure an applicant pool which includes women and underrepresented groups
including veterans and individuals with disabilities.
Step 4: Select Search Committee
To ensure applicants selected for interview and final consideration are
evaluated by more than one individual to minimize the potential for personal
bias, a selection committee is formed. The hiring manager will identify
members who will have direct and indirect interaction with the applicant in the
course of their job.
Step 5: Post Position and Implement Recruitment Plan
Once the position description has been completed, the position can then be
posted to the UCR career site via the ATS. Every effort should be made to
ensure the accuracy of the job description and posting text.
Step 6: Review Applicants and Develop Short List
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Once the position has been posted, candidates will apply via UCRs job board.
Candidates will complete an electronic applicant for each position (resume and
cover letter are optional). Candidates will be considered Applicants or
Expressions of Interest.
Step 7: Conduct Interviews
he interview is the single most important step in the selection process. It is the
opportunity for the employer and prospective employee to learn more about
each other and validate information provided by both.
Step 8: Select Hire
Final Applicant
Once the interviews have been completed, the committee will meet to discuss
the interviewees. Committee members will need to assess the extent to which
each one met their selection criteria.The search committee rating sheet will be
helpful in justifying decisions and making them as objective as possible.
The best candidate for the position was chosen based on
qualifications
The candidate will help to carry out the University and
Departments missions
Reference Checks
Reference checks should be conducted on the final applicant prior to making
an offer. While it is advisable to conduct a reference with the candidates
current supervisor before a candidate starts employment, if the candidate is
reluctant a conditional offer of employment can be made.
Step 9: Finalize Recruitment
Upon completion of the recruitment process the offer to the selected finalist is
made. The salary to be offered is to be equitable and lead to the retention and
motivation of employees. [19]
Performance Management:
Performance management is the process of creating a work environment or
setting in which people are enabled to perform to the best of their abilities.
Performance management is a whole work system that begins when a job is
defined as needed. It ends when an employee leaves your organization. Many
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writers and consultants are using the term performance management as a
substitution for the traditional appraisal system. I encourage you to think of
the term in this broader work system context. A performance management
system includes the following actions. [20]
Develop clear job descriptions.
Select appropriate people with an appropriate selection process.
Negotiate requirements and accomplishment-based performance
standards, outcomes, and measures.
Provide effective orientation, education, and training.
Provide on-going coaching and feedback.
Conduct quarterly performance development discussions.
Design effective compensation and recognition systems that reward
people for their contributions.
Performance management is the systematic process by which the Department
of Commerce involves its employees, as individuals and members of a group,
in improving organizational effectiveness in the accomplishment of agency
mission and goals. [21]
Here are 5 additional performance management tasks that should be a standard
part of your performance management process:
1. Get Employees to Complete Self-Assessments
To drive up employee engagement in your performance appraisal process, and
ensure an effective dialogue between managers and employees, it's important
to include employee self-assessments as part of your process. You can use the
same form you do for your regular performance appraisals, or create a slightly
modified version.
2. Gather 360 Degree Feedback
Let's face it, managers rarely have the full perspective on their employees'
performance. 360 degree feedback can help managers avoid bias, get a
different perspective on their employees' performance and better identify areas
that need coaching or development. And employees often discount negative
feedback as "just your opinion". Substantiating feedback by gathering if from
multiple, credible sources can make it more objective and increase its impact.
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You can collect feedback from other managers, peers, subordinates, even
customers - anyone who works with the employee on a regular basis and can
give you insight into their performance.
3. Align Employee Goals with Organizational Goals
We all know the importance of creating SMART (specific, measurable,
achievable, relevant, time-bound) goals for our employees. Part of what makes
a goal relevant is its context.
4. Create Development Plans for Employees
Development planning is most powerful when it's an integral part of the
performance management process, not a separate activity. The performance
appraisal meeting is usually the principal time when managers and employees
discuss performance deficiencies and career aspirations.
5. Reward Good Performance
Finally, it's important to reward and reinforce good performance. Performance
ratings should be a known and visible factor in determining employee rewards
and compensation. Integrating your performance management process with
your compensation management process lets employees know that
compensation practices are fair and based on their performance.
The performance management process is used to communicate
organizational goals and objectives, reinforce individual accountability for
meeting those goals, and track and evaluate individual and organizational
performance results. It reflects a partnership in which managers share
responsibility for developing their employees in such a way that enables
employees to make contributions to the organization.
It is a clearly defined process for managing people that will result in success
for both the individual and the organization. [22]
Training & Development
Training and development refers to the practice of providing training,
workshops, coaching, mentoring, or other learning opportunities to employees
to inspire, challenge, and motivate them to perform the functions of their
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position to the best of their ability and within standards set by local, state,
Tribal, Federal and licensing organization guidelines. Training and
development activities provide all involved system of care parties with the
tools they need to develop professionally, increase their knowledge,
effectively work with families, and build their capacity to perform the tasks
associated with their positions within the system of care. Since a system of
care operates within an existing human service agency, it is expected that most
human resource issues, such as hiring, benefits, staff recognition, and
performance appraisal issues, would be handled within the agencys human
resources department. It would be important to make sure that system of care
principles are infused into the day to day practices of human resources
personnel. [23]
Function of Training
The singular function of training is to produce change. It is the upgrading of a
persons skill or the addition of a new skill, which in turn can bring about the
desired change an agency is seeking. It is important to understand that training
in and of itself cannot motivate a work force. However, it is an integral part of
what is needed to accomplish the long-term goals of the agency.
Value of Training
Often supervisors ask, "Why should I provide training to my staff?" There are
many reasons agencies provide training to their employees:
to foster growth and development
to provide opportunities for employees to accept greater challenges
to aid employees in contributing to the achievement of department
goals and the agencys mission and vision
to build employee self-confidence and commitment
to produce a measurable change in performance
to bring about the desired changes that can solve a variety of problems
Benefits of Training
Providing training to an employee benefits both the employer and employee
by:
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improving an employees performance
developing the group and team skills needed to achieve organizational
goals
giving employees the needed skills and knowledge to complete
assigned jobs, duties and tasks
motivating employees to achieve higher standards
increasing overall efficiency
improving customer service, which leads to customer satisfaction
preparing employees for promotional opportunities
decreasing employee turnover, which reduces down time
enhancing employee morale, motivation, and creativity
Determining Training Needs
There are a number of ways to determine the type of training an employee will
need.
Request from employee Employees usually are the first to recognize the
need for additional training. This need can result from the assignment of a new
task, technological changes, or just a realization that additional training would
result in a more efficient work product.
Change in agency vision or mission Agency vision and mission can
sometimes change due to state or federal legislation. Thus employees may be
assigned new duties or positions may be restructured.
Determination through performance management review An excellent
time to determine training needs is when a performance review is completed
on employees. Based on the employees self-assessment of identified strengths
and improvement opportunities, an analysis should follow to determine
training that may be needed to improve overall work performance. [24]
Types of Training to Provide
There is no pre-determined "check list" regarding the type of training needed
to ensure employees will always meet performance expectations. Since each
individual is different, supervisors will have to make a thorough assessment of
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the type of training needed. Human Resource Management Services conducts
a yearly training needs assessment to ensure programs are being offered that
meet agency requirements. Agencies can also contact Human Resource
Management Services to arrange for specific training based on performance
management review, revised missions and vision, etc.
There are core or basic training programs needed when a person accepts
supervisory or management positions, such as:
Understanding management, organizational and motivational theory,
and application
Planning, setting, and carrying out organizational objectives
Planning and leading effectively
Specific training needed when an individual enters a supervisory position is:
Planning, scheduling, and delegating work assignments.
Communicating, handling conflict, and handling grievance procedures.
Understanding various state and federal employment laws.
Interviewing and completing performance management reviews.
Setting unit goals and objectives.
Levels and Types of Formal Training
We have identified three levels of formal training available to employees. The
type of training selected should be based on the need of the individual, which
can be determined through the performance management review, individual
request, reorganization efforts, or supervisor observation. The Human
Resource Management Services web site lists the various training programs
offered to state agencies. The types of formal training available to employees
are:
- Orientation Training
This training is geared for the newly hired or reassigned personnel. These
programs are designed to give new employees the basic knowledge,
understanding, and skill needed for successful job performance. Programs
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include orientation and various job skills training such as computer usage,
communication techniques, phone usage, etc.
- Remedial Training
This training is designed to correct observed deficiencies in employee
knowledge, skill, and attitudes. Programs include stress reduction, time
management, presentation skill building, assertiveness building, business
writing, hands-on experiences in word processing, computer software, etc.
- Upgrading or Advanced Training
This training is designed to improve or upgrade individual job skills and
knowledge. Programs include advanced computer training, decision making,
employment laws, managing conflict, conducting performance evaluations,
sensitivity training, supervisory responsibilities, resolving grievances, etc.
Right Training at the Right Time
Supervisors, who perceive a training need, should contact their human
resource officer or Human Resource Management Services, who can assist in
developing a needs assessment to identify a specific training need.
After agencies know their focus and have developed their plans, they can
determine the exact training needed to meet objectives through a needs
assessment. There are four types of needs assessment. They are:
- Organizational needs assessment
Organizational needs emerge from agency goals, objectives, and priorities.
This type of need can be universal for all employees, such as reducing stress,
improving productivity, etc.
- Group needs assessment
These types of needs are easier to determine because they are closely related
to specific job levels and categories of employees, such as team-building,
problem solving, etc.
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- Individual employee needs assessment
The needs uncovered with this type of assessment are more specific and can
be easily identified by reviewing the individuals background, education,
training, experience, skills, knowledge, and past performance. Individual
needs are those skills needed to do the employees current job, future
assignments, and career plans.
- Job needs assessment
Based on the job in question, this type of need can be the most difficult or
easiest to identify. Occupational, job, and task analyses are conducted to
determine the type of training needed. [25]
The Training Process:
1. Assess Objectives & Training Needs
An organization must first assess its objectives: what business are we in? What
product or service do we wish to provide to customers? At what level of
quality do we wish to provide this product or service? Once an organization
has answered these and similar questions, an assessment of human resource
requirements should be undertaken
2. Select Trainees and Training Goals
After needs have been assessed, trainees must be selected and training goals
established. Trainees should be selected with care, ensuring that they and the
organization will benefit from their inclusion in the training program. The
training goals should ensure that the assessed needs will be served.
3. Select Training methods and Trainers
Once training goals have been established, it is necessary to determine how to
conduct the training. This includes the selection of training techniques and
trainers for the program. Additionally, employees ability should be
considered when designing the training program.
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On-the-job training Probably the most widely used method of
training is on the job training. It is estimated that more than 60% of
training occurs on the job.
Case method One widespread technique is the case method, which
uses a written description of a real decision-making situation in the
organization or a situation that occurred in another organization.
Role-playing Role playing is a cross between the case method and an
attitude development program. Each person is assigned a role in a
situation (such as a case) and asked to play the role and to react to
other players role playing. The success of this method depends on the
ability of the players to play the assigned roles believably.
In-Basket Technique Another method used to develop managerial
decision-making abilities is the in-basket technique. The participant is
given materials (typically memos or descriptions of things to do) that
include typical items from a specific managers mails, and a telephone
list.
Management Games management games describe the operating
characteristics of a company, industry, or enterprise. These
descriptions take the form of equations that are manipulated after
decisions have been made.
Behavior Modeling A development approach for improving
interpersonal skills is behavior modeling, which is also called
interaction management or imitating models. The key to behavior
modeling is learning through observation or imagination.
4. Evaluation
At the same time, the means to evaluate the program must be established. The
means selected for evaluation must be sensitive to the type of training
conducted, the training techniques used, the training program goals and the
initial training needs.
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5. Monitoring
As training is being conducted, provision must be made for ensuring that the
program is proceed as planned. Without monitoring the training process, it is
possible that a well-designed training program may be conducted improperly
or otherwise fail to accomplish its goals.In sum, formal training and
development have been shown to be more effective than informal or no
training and development. [26]
Employee Welfare
Employee welfare is a term including various services, benefits and facilities
offered to employees by the employers. The welfare measures need not be
monetary but in any kind/forms. This includes items such as allowances,
housing, transportation, medical insurance and food. Employee welfare also
includes monitoring of working conditions, creation of industrial harmony
through infrastructure for health, industrial relations and insurance against
disease, accident and unemployment for the workers and their families.
Through such generous benefits the employer makes life worth living for
employees. [27]
Importance of Employee Welfare
As a business, you have to provide various benefits to ensure your
employees' welfare. While this may increase your business expense and
negatively affect your bottom line, looking after your employees will benefit
you in other ways.
Compliance:
As an owner, you are required by law to provide certain benefits for the
welfare of your employees. You may have to match the Social Security taxes
your employees pay and obtain a worker's compensation insurance policy. If
you terminate an employee, you may have to funds to extend his health
insurance.
Hiring and Retention:
The benefits an employee receives from his employer for his welfare are
often a significant reason why he decides to accept a job offer. As such,
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providing employee benefits allow you to compete with other businesses to
recruit and retain qualify employees. If other employers offer better benefits,
good employees may choose to go there.
Employees Motivation:
By providing a plan that's good for employees' welfare, you show them
that you value them. This can help make them feel welcome and happy in your
company, motivating them to work harder. If your health plan has wellness
coverage and preventative care, employees are more likely to stay healthy,
cutting down on absenteeism and sick days.
Employees' Well-Being:
For companies that have a large base of employees working under stressful
conditions or living away from family, it is important to look at fostering
personal happiness and professional growth. Investing in employees pays
dividends in terms of higher productivity and greater loyalty.
Company Image:
Providing a good employee welfare plan reflects well on your business,
building a good company image. It may even earn you some press coverage,
giving you free publicity to improve awareness among potential customers.
This may boost your sales and increase your profits. [28]
Features of Employee Welfare
Employee welfare is a comprehensive term including various services,
facilities and amenities provided to employees for their betterment.
The basic purpose of employee welfare is to improve the lot of the
working class and thereby make a worker a good employee and a
happy citizen.
Employee welfare is an essential part of social welfare. It involves
adjustment of an employee's work life and family life to the
community or social life.
How to Develop an Effective Employee Welfare Program
Conduct employee surveys to understand their needs and expectations
Indentify key areas of building skills and engagement and facilitating
trainings for the same.
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Propose solutions for personal upkeep, family uplifting and future
security
Objectives of employee welfare
Employee welfare is in the interest of the employee, the employer and the
society as a whole. The objectives of employee welfare are: -
It helps to improve.
It improves the loyalty and morale of the employees.
It reduces labor turnover and absenteeism.
Welfare measures help to improve the goodwill and public image of
the enterprise.
Types of welfare services
The types of welfare services are as follows: -
Housing, Education, Child welfare, Leave travel facilities, Interest free loans,
Workers cooperative stores, Vocational guidance etc.
Employee Welfare Schemes
Organizations provide welfare facilities to their employees to keep their
motivation levels high. The employee welfare schemes can be classified into
two categories viz. statutory and non-statutory welfare schemes. [29]
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Limitation
When human being want to do some good work, may be some obstacles are always be
there.
I faced some difficulties to complete my report:
It was difficult enough to cover all the desks within this limited period of
three (3) months.
Banks policy is not disclosing some data and information that is very much
confidential for the bank.
Employees were very much busy in banking hours. Therefore, it was
difficult to conversation with them.
Perceptual difference of the employees to measure job satisfaction.
Since the major source of the data was secret, a lot of important data could
not be used in preparing the report.
There is a difficult matter to collect sufficient data from banks. Many
expected data I have failed to collect. So, lack of sufficient data is one of
the most limitations of preparing of this report.
Most of the essential data are confidential for the bank. So, there is lack of
primary data.
Lack in depth knowledge and analytical ability for writing such report.
I have tried my best and I am feeling glad because I believe that I am overcame all the
difficulties and completed my internship report paper.
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Gantt Chart
Activity Week
7 8 9
Started working in the project
Going to instructor for review
Activity Week
1 2 3
Registration for project
Taking topic from instructor
Making questionnaire
Activity Week
4 5 6
Taking appointment to the HR personnel
Going to organization
Gathering Information from
other sources
Activity Week
10 11 12
Correcting Mistakes
Submitting rough report
Submitting Finalreport
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Chapter One
Introduction
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Author: Yasir Sabab
Chapter One
Introduction
1.1. Company Profile
The SOCIAL ISLAMI BANK LTD (SIBL), a second-generation bank, operating since 22
November, 1995 based on Shariah Principles, has now 86 branches all over the country with
two subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. Targeting poverty,
SOCIAL ISLAMI BANK LTD. is indeed a concept of 21st century participatory three sector
banking model in one. in the formal sector, it works as an Islamic participatory Commercial
Bank with human face approach to credit and banking on the profit and loss sharing: it is a
Non-formal banking with informal finance and credit package that empowers and humanizes
real poor family and create local income opportunities and discourages internal migration; it
is a Development Bank intended to monetize the voluntary sector and management of Waqf,
Mosque properties and introducing cash Waqf system for the first time in the history. In the
formal corporate sector, this Bank would, among others, offer the most up to date banking
services through opening of various types of deposit and investment accounts, financing
trade, providing letters of guarantee, opening letters of credit, collection of bills, leasing of
equipment and consumers' durable, hire purchase and installment sale for capital goods,
investment in low-cost housing and management of real estates, participatory investment in
various industrial, agricultural, transport, educational and health projects and so on.
The bank has taken a renewed drive aiming at consolidating its business in more focused
areas covering SME and Agro-finance with emphasis on searching for alternative delivery
channel under which SMS banking and mobile based remittance payment systems that are
gradually introduced to disseminate the SIBL services to the doorsteps of the customers. The
bank has already introduced Internet banking and launched some new products to strengthen
its business. The products are Sonali Din, Sommridhir Sopan, Sonchoy Protidin, Swopner
Shiri, Shukher Thikana, Sabuj Chhya, Sabuj Shayanho, Subarnolata, Subornarekha,
Sanchaita etc. and Zamil ATM Debit card.
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SIBL is a pioneer in introducing on-line banking among all the Islami Banks of the country
with state-of-the-art banking software, which will enable the bank to perform as any branch
real time banking service to the clients. The state-of-the-art banking software of the bank will
enable to perform as any branch real time banking service to the clients. SIBL is supported by
core banking solutions and our products & services are strongly backed by IT infrastructure,
which are upgraded & expanded on continuous basis.
SIBL has set its strategy to convert all its banking activities from traditional branch-based
banking system to an ideal blending of both centralized processing unit (CPU) and effective
operation of branch that based on modern essence of banking. The bank is running its
payment system successfully through BACPS, BEFTN under BACH in order to boost up its
businesses in multiple dimensions. Adopting BACH System as per guidelines of Bangladesh
Bank, SIBL ensures security, safety and hassle free faster transactions from end to end.
Moreover, the bank is effectively adopting regulatory guidelines on IT risk management.
SIBL is quite conscious of its social business responsibilities and is always trying to
participate in various social programs in the country under its CSR portfolio giving special
emphasis on health, habitat & education. The bank ensures to provide better integrated idea
of formal, informal & voluntary banking in the same platform. SIBL has its unique feature to
mobilize capital through CASH WAQF program. SIBL lays emphasis on employment
generated, environment friendly and green banking based investment keeping an eye on
equitable distribution of resources over geographical territory for sustainable growth of
macro economy of the country.
The Bank's continuous effort has been to increase the shareholders' value, and be valued as a
compliant organization. The Corporate Governance systems in SIBL ensure transparency and
accountability at all levels in conducting business.
1.1.i Code of Conduct & Ethical Principles
Code of Conduct for the Employees
Adhere to the Shariah Principles.
Adhere to the disciplinary measures of the bank.
Adhere to applicable laws and regulations during performance of duties,
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To inform the customers about the benefits and risks of the products and services
offered to them,
To offer unbiased and fair service to the customers receiving the same services,
Not to disclose the secrets of their customers and the banks which they come to learn
by virtue of their positions and titles to anyone other than those persons and
authorities who are explicitly authorized under laws,
Not to cause any loss of reputation of the bank during works and attitudes,
Not to be engaged in any activity that can be classified as personal business.
Not to behave in contradiction with the principles of justice, integrity, honesty,
reliability and social responsibility,
To cooperate with other employees for common purposes through building a
courteous and diligent communication during their fulfillment of duties,
1.1.ii Ethical Principles of SIBL
Objectivity-the bank shall possess strict principle of objectivity in its day to
day banking operations in relations to its customers, employees, shareholders,
other banks, other organizations by maintaining and protecting the stability
and trust in the banking sector.
Just and equitable-the bank shall have no discrimination and avoid all forms of
bias in its attitudes towards employees as well as to its customers.
Honesty-the bank during its operations shall stick to the honesty principle in
relations to customers, employees, shareholders, other banks, regulators and
the stakeholders.
Impartiality-the bank is impartial towards its customers based on their
nationality, religion, financial and social standing, and gender during banking
service.
Reliability-the bank shall offer clear, comprehensible and correct information
to its customers within the principle of reciprocal trust during services and
transactions; and to provide the customer services in a timely and complete
manner.
Transparency-the bank shall inform its customers in an open, easily
understandable and clear way regarding the underlying rights and
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responsibilities, benefits and risks attached to the products and services
offered to them.
Observing Social Benefit and Respect to Environment-the bank shall show
due diligence to support all kinds of social and cultural activities in the light of
the principle of observing, aside from the profitability, the social benefit and
respect to the environment.
Fighting money laundering -the bank has a policy to fight against corruption
and Money laundering etc. as a significant principle as stipulated by
international norms and the provisions of national laws and regulations. The
bank shall take appropriate measures to discharges duties by the employees
with utmost due care and caution to fight the laundering of crime originated
assets.
Insider Trading-the bank has a clear policy and take all measures in order to
prevent the use of insider information for the trading purposes.
Relations with public organizations, regulators and other institutions the
bank, during its relations with the public organizations, regulators and other
institutions, should act in observance of the principles of honesty,
accountability and transparency, and should show the utmost care for the
correct, complete and timely communication of the information, documents
and records in accordance with the laws and regulations of the country.
Personnel behaviors the bank shall avoid all kinds of practices and
applications that may cause unfair competition in the employment of the
personnel.
1.1.iii Board of Directors
i. Mr. Md. Anisul Hoque (Chairman)
ii. Alhaj Sk. Mohammad Rabban Ali (Vice Chairman)
iii. Mr. Md. Sayedur Rahman (Vice Chairman)
iv. Major (Retd) Dr. Md. Rezaul Haque (Director)
v. Alhaj Sultan Mahmood Chowdhury (Director)
vi. Mr. Abdul Awal Patwary (Director)
vii. Alhaj Nasiruddin (Director)
viii. Mr. Mohammad Azam (Director)
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ix. Mr. Mohammad Fazley Morshed (Director)
x. Mr. A Jabbar Mollah (Independent Director)
xi. Mr. Md. Shafiqur Rahman (Managing Director)
1.1.iv Company values
Honesty
To be honest is ordained by the scripture we stick to this value in all our service
provision.
Transparency
Remaining transparent in all acts is a virtue that's builds trust - we adhere to it.
Efficiency
Efficiency implies perfection in any job done - we strive to render full satisfaction
with it.
Accountability
To be accountable is to be responsible and above any suspicion - we are dutifully
there.
Religiousness
SIBL enhances economic well being with regard to the bliss of religious ethics.
Innovation
Our minds and eyes are open to the evolution in quality of life to innovate further
benefits for the service takers.
Flexibility
Flexibility leads to better understanding and greater satisfaction - we pursue the
quality.
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Security
Customers must feel secure with all our products and services - we keep on ensuring
it.
Technology
Modern life is technology dependent - we keep looking for the latest development to
provide the best in ease to our clients.
1.1.v SIBL Subsidiaries
1. SIBL Securities.
2. SIBL Investment.
SIBL Securities
About Us
SIBL Securities Limited (SIBLSL), a subsidiary company of Social Islami Bank Limited and
promised to be a leading brokerage house in the country has been set up with a view to strengthen the
countrys capital market.
SIBL Securities Limited has started its stock broking in countrys both stock exchanges (DSE & CSE)
at a time. SIBLSL provides investors with a platform to trade in both the Dhaka and Chittagong Stock
Exchanges. SIBL Securities Limited has got license from the SEC as a Stock Broker & Stock Dealer
in both the Dhaka and Chittagong Stock Exchanges. SIBLSL also licensed by the CDBL as a full
services Depository Participant (DP).
Key Strength:
Exceptional quality and professionalism in its service offering to clients
An experienced and dedicated senior management team
A trained and professional sales team
A competent equity market research unit
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Online Trading Facility from anywhere in the world
State of the art technology utilized in trade execution and back office and
reporting systems
Services
Bo (Beneficial Owner) accounts opening and maintenance
Dematerialization and Re-materialization
Transfers and multiple accounts movement
Pledging, un-pledging and confiscation
Corporate events announcement enquiry (Cash and non Cash).
BO ISIN balances and master maintenance enquiry
Brokerage service for Institutional Clients like Insurance company and
other Institutions.
Banks and Financial Institutions
Brokerage Service for retail (Individual) Clients
Margin loan facility at affordable Profit rate
International and Domestic Placement of Securities;
Trade Execution Dhaka and Chittagong Stock Exchange Limited
Pre-IPO private placement opportunities through Merchant Banks
Research
SIBL have an expert research team. They provide:
Daily price information Market Overview, Daily Fact Sheet
Monthly report
Industry/Corporate research report
Free access to our company research reports through our web-site
sectors and Company research reports
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Functions of
Social Islami
Bank Limited.
Deposit
procurement &
management under
Shariah
Principles
Social Services
(CSR)
Investment
using Islamic
Financial
Contract
Financial Services
i.e. Letter of Credit,
Guarantee, Money
Transfer etc.
Functions of Social Islami Bank Limited
Figure: 1.1
1.2 Company Vision
In our journey towards continuous excellence we are striving to become the country's leading
Islamic Bank offering one-step service of an wide range of value added products and services
meeting the needs of our customers; conducting our business ethically in accordance with the
laws of Shariah while optimizing best utilization of the most modern state-of-the-art
technological solutions through creation of pro-active organizational culture based on sound
team spirit, fairness, mutual understanding and pragmatic leadership always remaining open
to new ideas and adaptable to the best practices in the market ensuring recognition and
quality banking experience to our Customers and deliver best value to all our stakeholders as
well.
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1.3 Company Mission
Transformation into a service-oriented technology-driven profit earning Bank.
Ensure fast, accurate and best-in-class customer service.
Balanced & sustainable growth strategy.
Optimum return on shareholder's equity.
Introducing innovative Islamic Banking Products.
Attract and retain high quality human resources.
Empowering real poor families and create local income opportunities.
Providing support for social benefit organizations by way of mobilizing Funds and
social services.
1.4 Strategic Objectives
Transformation into a service-oriented technology driven profit earning bank.
Ensure fast, accurate and best-in-class customer services with customers satisfaction.
Balanced and sustainable growth strategy.
Optimum return on shareholders equity.
Introducing innovative Islamic Banking Products.
Attract, motivate and retain high quality human resources.
Empowering real poor families and creating local income opportunities.
Providing support for social benefit organizations by way of mobilizing Funds and
social services.
To