Professional Documents
Culture Documents
Shaker Raza
Intern (IIDFC)
BBA
Independent University Bangladesh.
ID: 0520207
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Chapter : 1 Introduction.
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• To enhance the product line and diversify in the conformity with the existing ones.
• To achieve the local market first and then penetrate in the foreign market.
• To accept the most up-dated technologies giving the prompt support to the interested
parties.
• To conduct the operational activities prudently and provide the profits and growth which
will assure IIDFC’s ultimate success.
• To ensure the sharing and caring inner world of IIDFC.
• To keep the professionalism in recruiting the officials and others.
• To keep full respect on Corporate Social Responsibility (CSR).
• IIDFC believes its cent percent successful achieved by its valued employees.
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1.6 Departments of IIDFC.
1.6.1 Operations:
The operations department is being headed by the Executive Vice President of the
company. This department is responsible for attracting new clients, maintaining the
existing ones, providing the desired financial services to the clients and monitoring the
progress of the services as well. The operations department is divided into three
distinctive branches. They are Corporate Finance, SME and Monitoring & Recovery. The
Corporate Finance department is headed by an AVP and the AVP is the only person in
this sub wing who reports directly to the Executive Vice President – Operations and also
to the Managing Director. The other members of the department are two Managers, one
Deputy Manager, four Assistant Managers and four Management Trainees. Normally,
there are team consisting of two persons in the corporate finance department and each
team is responsible for attracting new clients, maintaining the existing ones, providing the
desired financial services to the clients and monitoring the progress of the services as
well.
IIDFC started SME financing in the year 2006. this department is headed by an
AVP and AVP directly reports to the Head of Operations. There is also Recovery and
Monitoring wing and it is headed by a Manager. He directly reports to the Head of
Operations.
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reportable to the Managing Director. Though this department is very thinly staffed the
activities are not that simple. To ensure coordination and avoid any kind of conflict
within, the department has been divided into two separate sections.
The head of Operations is the center of most of the activities in IIDFC. Since
treasury, recovery and monitoring, corporate finance, SME finance all these departments
are directly under him/her, the Head of Operations basically directly responsible to carry
out the mandate given by the board of directors regarding policy and guidelines of
providing credit facilities to the clients. Even though there is a structured finance
department, the operation department also arranges syndicated credit facilities for its
corporate clients.
IIDFC
Corporate
Finance
SME
Monitoring
& Recovery
Treasury
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Fig 1.2 Organizational Chart of IIDFC
Board of
Directors
Managing
Director
Sr. Officer
Officer
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Chapter 2: Human Resource Management of IIDFC.
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2.2 The Human Resources of IIDFC:
In 2009, the total executives in the employment of the company were 86 including
the CEO. For coping with the increased volume of business, opening of a branch in
Chittagong and recruitment of core staff for the share trading operation, a total of 16 new
executives were recruited during 2008 taking the total number to 102. For training,
IIDFC extensively uses the training programs offered by IDCOL, BIBM and senior staff
members regularly participate in seminars and workshops organized by different
institutions. During 2008, there has been a change in the CEO of the company and Mr.
Md. Asaduzzaman Khan, joined the company as the CEO after taking voluntary
retirement from his position as the Executive Director of Bangladesh Bank.
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Executive Grade – IX Deputy Managing Director
Executive Grade – VIII Executive Vice President
Executive Grade – VII Senior Vice President
Executive Grade – VI Vice President
Executive Grade – V Assistant Vice President
Executive Grade – IV Manager
Executive Grade – III Senior Executive
Executive Grade – II Executive
Executive Grade - I Junior Executive
The general staff members comprise of the following:
1. Messengers, Guards and cleaner
2. Assistant Officer, Computer Operator, & Receptionist.
The Drivers, maintenance staff, cleaners and tea-boys etc. are not regular staff members of
the company and are procured from outside.
3.1.2 Nationality:
No person is appointed to any post in the service of IIDFC unless he/she is a citizen of
Bangladesh.
Provided that the Board may, in special cases, waive the condition in favor of non-
resident Bangladeshis or other foreign nationals subject to fulfillment of conditions
governing employment of foreign nations in Bangladesh.
3.1.3 Age:
The age of all new recruits at entry point into IIDFC’s service are governed as per following
provisions:
(a) At the time of appointment to the post of an executive, the age of the candidate is not less
than 21 (twenty one).
(b) The age of a candidate in case of general staff members is not less than 18 (eighteen)
years.
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3.1.4 Procedure for recruitment:
(a) All appointments to posts specified in Table 1.1 are made in accordance with the criteria
in table 1.2 by:
i. Direct recruitment;
ii. Promotion;
iii. On contract.
(b)i. There is a Higher Selection Committee consisting of the Chairman, the Vice
Chairman, one Director and the Managing Director who are the selection and
recommending authority for all Executive posts from Grades V to X.
ii. For executive posts from Grades I to IV, the Selection Committee consist of the
Chairman, the Vice Chairman and the Managing Director.
(c) The Appointment Authority for all Executive Posts is the Board of Directors who acts on
the recommendation of the Selection Committees. The Board, however, delegate this
authority, in part or in full, to the Selection Committee.
Table 1.2 (Qualification and experience of executives):
Sl Position Appointment Academic Experience
by Qualification
1 Deputy Managing Recruitment * Masters 18 years experience in banks/NBFIs
Director Promotion 3 years experience as EVP
2 Executive Vice Recruitment * Masters 15 years experience in banks/NBFIs
President (EVP) Promotion 3 years experience as SVP
3 Senior Vice Recruitment * Masters 12 years experience in banks/NBFIs
President (SVP) Promotion 3 years experience as VP
4 Vice President Recruitment * Masters 10 years experience in banks/NBFIs
(VP) Promotion 3 years experience as AVP
5 Assistant Vice Recruitment * Masters 8 years experience in banks/NBFIs
President (AVP) Promotion 3 years experience as Manager
6 Manager Recruitment * Masters 7 years experience in banks/NBFIs
Promotion 3 years experience as Sr. Executive
7 Senior Executive Recruitment * Masters 6 years experience in banks/NBFIs
Promotion 3 years experience as Executive
8 Executive Recruitment Masters At least 2 first classes including one 1st
class in honors/masters with no 3rd class.
MBA, Cacc At least two 1st class and minimum CGPA
should be 3.25
Promotion 3 years experience as Jr. Executive
9 Junior Executive Recruitment Masters Must have at least one first class with no
3rd class.
B.B.A At least one first class with no 3rd class
and minimum CGPA should be 3.00
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* Must have at least one first class with no 3rd class including honors in the same subject.
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3.1.8 Promotion:
(a) Promotion is not claimed as a matter of right. The criteria for promotion to a higher post,
if available, is merit-cum-seniority. A person becomes eligible for promotion he has
satisfactory record of service and meets the criteria for promotion as specified in Table
1.2.
(b) Promotion of the employees fulfilling the above criteria up to the rank of Senior
Executive is decided by the Managing Director. Promotion of the employees above the
rank of Senior Executive is recommended by the Managing Director to the Competent
Authority.
(c) Promotion decided by the Managing Director and the Competent Authority is however
reported to the Board for information and perusal.
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V Asst. Vice President 30,400 to 86,400
IV Manager 24,000 to 64,000
III Senior Executive 16,000 to 44,000
II Executive 12,800 to 32,800
I Junior Executive 8,000 to 22,000
- Off. Assistant, Computer 5,600 to 12,400
Operator, & Receptionist
- Messengers and Peons 3,200 to 7,200
* Allowances are paid based on Basic Salary as follows:
(a) Housing allowances: 50% of Basic Salary
(b) Conveyance allowance: 5% of Basic Salary
(c) Medical allowances: 5% of Basic salary
(d) Entertainment allowances: 5% of Basic salary
* An employee enjoying car facilities are not entitled to conveyance allowances.
* An employee holding designation of Manager or above grade is entitled to Entertainment
allowances.
* The Board appoints any of the above-mentioned personnel on contract basis on such
terms & conditions, as it deem expedient.
3.2.2 Initial pay:
(a) The initial pay of an employee on first appointment is the minimum to the scale of pay of
the post to which he is appointed.
(b) An Executive/employee, in the case of first appointment, is in recognition to his special
qualification, experience and merit is granted higher initial pay in the scale of pay of the
post by the Competent Authority or Managing Director.
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(d) Where the performance of an employee is not satisfactory, the Managing Director, stops
sanctioning the increment and put the employee special report for a period not exceeding
6 (six) months, and upon receipt of such report may sanction the increment either
retrospectively or with immediate effect depending on the performance.
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3.2.10 Income Tax:
An employee of IIDFC, whose annual income exceeds the exemption limit as set by the
government from time to time is liable for payment of income tax. IIDFC deduct the appropriate
tax from salary for deposit in the government exchequer.
3.3 Leave:
3.3.1 General:
(a) In IIDFC leave is not claimed as a matter of right, it is earned by duty only.
(b) Management holds the right to refuse/grant leave for a shorter period than applied for,
revoke leave and recall the employee before expiry of his/her leave.
(c) An employee resumes duties on the expiry of leave initially granted or as subsequently
curtailed or extended. Overstay entails disciplinary action including dismissal from service.
(d) Employees on leave are not allowed to accept any other employment or any office of
profit.
(f) Any public or weekly holidays falling within the period of leave are treated as part of the
sanctioned leave.
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ii. A total number of 12 days casual leave is admissible to an employee of IIDFC in a
calendar year.
iii. Casual leave are not combined with any other leave and are not accumulated.
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(e) Extraordinary Leave:
i. Extraordinary leave without pay is granted to an employee in special
circumstances, when no other leave under these rules is available.
ii. Entitlement of perquisites and other benefits during extraordinary leave is decided
by the Competent Authority on a case-by-case basis.
3.4.1 Retirement:
Every employee retires from the service of the company on attaining the age of 60.
Provided that, the period of service beyond 60 years of age is extended by the Board for
such period as it deem necessary for the greater interest of the company. In that case, the
extended period beyond 60 years is treated as contract period.
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The service of a probationer or a temporary employee is liable to termination by the
competent authority without assigning any reason and after giving him one month’s
notice in writing or payment of one month’s pay in lieu thereof, and the probationer or
the temporary employee so terminated is entitled to any form of compensation or
service benefit.
(b) Confirmed Employee:
The competent authority terminates the services of a confirmed employee, without
assigning any reason, by giving 3 months notice or 3 months basic pay in lieu thereof.
(c) Employee on contract:
The service of an employee on contract is terminated by the competent authority as per
terms and conditions stipulated in the contract. \
3.4.3 Resignation:
(a) Confirmed employees:
An employee having confirmed employment in the company resigns or leave the
company without giving 3 months prior notice in writing. A lesser notice period liable
the employee to compensate the company for an amount equal to his/her basic pay for
the period the notice falls short of the stipulated 3 months.
(b) Temporary / Probationary Employee:
The temporary employee of IIDFC resigns without giving one month prior notice in
writing. A lesser notice period is liable the employee to compensate the company for an
amount equal to his/her basic pay for the period the notice falls short of the stipulated 1
month.
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accommodation, if any provided to him by he company and also make over charge of his
office to an Authorized Executive of the company.
3.5 Gratuity:
3.5.1 Admissibility:
(a) Gratuity is admissible to all employees who rendered services in the company at least 5
years of continuous service, except in the event of death and:
i. have not been dismissed or removed from service as a measure of punishment;
ii. have not resigned, left or discontinued the service without properly complying with
the formalities required therefore and
(b) In the event of death of an employee, gratuity is paid irrespective of the number of year
of service.
3.5.2 Amount:
The amount of gratuity is computed at the rate of 1 month’s Basic pay for each
completed years of service. The last pay drawn is the basis fir such computation.
3.5.3 Nomination:
(a) Each employee is nominated in the prescribed from person who receive the gratuity in the
event of his/her death.
(b) If an employee nominates more than one person under sub rule (a) above, she/he
specifies the share of each nominee.
(c) An employee, at any time, can cancel a nomination and make a fresh nomination by
giving due notice in writing.
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3.6 Discipline and Punishment of IIDFC:
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iii. Stoppage, for a specified period, at a stage of salary
iv. Deduction of an amount equivalent to 7 (seven) days basic pay.
(b) Major penalties:
i. Reduction to a lower post or scale of pay
ii. Recovery from pay or any other account due to the employee of the whole or
part of pecuniary loss caused to the company by the employee due to
negligence or breach of orders.
iii. Compulsory retirement from the service.
iv. Removal from the service.
v. Dismissal from the service. Removal from service does not, but dismissal
from service does, disqualify from future employment under the company.
DMD & EXP 1600 Tk. 1,500,000 250 Ltr Tk. 5,000 Tk. 7,000
SVP & VP 1500 Tk. 1,000,000 200 Ltr Tk. 4,500 Tk. 6,000
AVP, Manager 1300 Tk. 700,000 150 Ltr None Tk. 5,000
* Including Reg. Cost.
(d) Car Finance Scheme:
i. The car is primarily bought by the company, registered in the name of the company
and reported as Assets of the company.
ii. The company charges depreciation on the vehicles as per company accounting policy.
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iii. The company deducts over 60 installments an amount equivalent to 50% of the
purchase cost of the car. The amount is recorded and reported separately as
convenient.
iv. While the book value of the car becomes zero, the car is transferred to the employee
concerned and the amount deducted as referred to above is taken as sale price of the
car to the employee.
v. Where an employee enjoying a car under the Car Finance Facilities leaves the
company before the time required to reach the book value of the Car at zero value, the
money deducted from his/her salary by the company is forfeited and no claim for
such money is acceptable in any court of law considering that such deduction from
salary and forfeiture of the such deducted amount are made according to the
agreement by and between the company and the employee.
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medical allowances, entertainment allowances, etc. and the total salary. These are the pay
slips which are given individually to all the employees of IIDFC for their confirmation,
and based on the pay checks are given to them.
* CV Sorting:
During the period of my internship, IIDFC has decided to recruit four officers for
four different posts. More than one thousand CVs have been submitted by the interested
candidates. Among all the CVs the specific CVs for the exact posts are sorted out, along
with checking the information in the CVs which fulfills the requirement of the particular
posts, for example, required qualification, experience, etc. After sorting the CVs are sent
to the recruitment board for the selection. Among those twenty five CVs are selected for
each post. The detail information of those candidates is entered into the database for
further use of the recruitment board.
* Computerizing the salary information of the employees:
Till 2009 IIDFC had no computerized system for the salary information of each
employee. All the information was saved manually in hard copies. From the beginning of
2010 IIDFC has started to store the salary information in the computer database system.
Since IIDFC started its business, all the salary information was saved in hard copies and
according to those copies the information is fed into the computer database system.
Chapter 5: Conclusion.
It was very finicky to work in the environment of one of the largest financial
institutions in Bangladesh. IIDFC provides one of the best financial services to their
customers and also their employee that is conducted by HR Division. By working in the
HR department the knowledge was learnt would be helpful enough to sustain with real
world situation.
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Reference:
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