4.0 Project Paper

Strategic Recruitment Procedure in Banking Sector: A Case Study based on South East Bank Limited
1.0 Introduction
South East Bank Limited has a long and relished heritage. It is second generation banking which was established in 1995 with the vision to stand out as pioneer banking institution in Bangladesh and contribute significantly to the national economy. It was incorporated on March 12, 1995 as a Public Limited Company. Certificate of commencement of business of the bank issued by the Registrar of Joint Stock Companies and Firms was also dated March 12, 1995. The Banking license for the bank was issued by Bangladesh Bank on March 23, 1995. The bank and its first branch at the busiest commercial hub of the country at 1, Dilkusha C/A, Dhaka was opened on May 25, 1995 by Mr. Saifur Rahman. The authorized capital of the bank is BDT 2500 million. Its paid up capital and reserve reached BDT 2236.84 million as on December 31, 2005.
1.1 Purpose of the Report

The manpower is the lifeblood of any service oriented organization. As a private commercial bank, South East Bank Ltd. is playing a very significant role in development of various sectors in Bangladesh economy. In the field of deposit mobilization, Loans and advances, Import and export business, foreign remittance South East Bank is showing best growth performance year after year through its highly skilled human resource. At present a large number of banking and non banking financial institutions are doing their business i.e. the banking business is more competitive for the existence and smooth running of the banking business. It should be handled efficiently and for this reason more effective and efficient human resource is very much necessary. In the way of building skilled human resource recruitment and selecting system should be organizations target oriented. In this study, an effort is made to find out the present policies and practices for recruitment and selection in South East Bank Ltd.
1.2 Methodology
The study will be conducted through both primary & secondary data considering the field of South East Bank Ltd. Data Collection: 1
Both the primary and secondary sources would be used to collect the necessary data Primary data: Face to face meeting with the concerned top executives of South East Bank Ltd. will be arranged to collect necessary data. Secondary Data: The following sources will be used for secondary data: 1. Website of South East Bank Ltd. 2. Annual Report and Service Rule of South East Bank Ltd., 3. Report published from Bankers Association Bangladesh, 4. Report published from Ministry of Labor and Manpower.
1.3 Limitation
This report may have some incompleteness due to some limitations .In fact; the report is prepared in a brief period of time besides we have our own limitations too. Moreover-Some essential data could not be gathered because of confidentiality concern. The raw data available in the organization's database management system was complex and was not properly organized. Bank's officials are not reluctant to disclose their internal information related to strategic management of foreign exchange due to their competitors in the market. Data and other related source of information is not sufficient for conclusion of the study.
2.0 Overview of South East Bank Ltd.

South East Bank Limited a second generation private bank emerged in 1995 amid liberalization of global economies. Currently its authorized capital is 2500 million BDT and its capital and reserve reached 2236.84 million BDT. Its vision is to stand out as a pioneer banking institution in Bangladesh and contribute significantly in the economy of Bangladesh. Operational excellence coupled with qualitative improvements continued to be of paramount importance to the bank. At present the bank has 41 branches across the country. Plans have been drawn to raise the number of branches further. Their journey towards greater operational success continues with increased energy and enthusiasm. As they face the challenges on the way to further improving the profitability of SEBL, they rely on their skilled and experienced workforce, the advantages of their close and cordial partnership with customers, their family anchored presence in the countrys strategic places of commercial and business importance, global reach through their correspondent banks for expansion of foreign trade and use of their product-basket which encompass Real Time Online any branch banking, Islamic Banking, Merchant Banking, Dual Currency credit Card, ATMs, loan products etc.
2.1 Vision Statement

To stand out as a pioneer banking institution in Bangladesh and contribute significantly to the national economy.
2.2 Mission Statement

High quality financial services with the help the latest technology. Fast and accurate customer services Balanced growth strategy High standard business ethics Steady return on shareholders equity. Innovative banking at a competitive price. 3
Quality human resource. Firm commitment to the society and the growth of national economy.
2.3 Organizational Structures of South East Bank Ltd

Truly organizational form follows function, for Banks usually are organized to carry out the roles assigned to them as efficiently as possible. Bank size is also a significant factor in determining how Banks are organized. However, a Bank's role and size are not the only determinants of how it is organized or how well it performs. Government regulation too has played a major role in shaping the performance and diversity of banking organizations that operate around the globe. The organizational structure of South East Bank Ltd. is as under: Management Executives: Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President First Vice President Senior Assistant Vice President Assistant Vice President Banking Staff: Senior Principal Officer Principal Officer Executive Officer 4
Management Trainee Senior Officer Probationary Officer Officer Trainee Officer Junior Officer Trainee Junior Officer Computer Staff: Senior Officer (Computer) Officer (Computer) Junior Officer (Computer) Trainee Computer Officer Cash Staff: Head Cashier Senior Officer (Cash) Officer (Cash) Junior Officer (Cash) Trainee Cash Officer Sub-ordinate Staff: Messenger Bank Guard Driver (Permanent/Casual) Tea Boy/Electrician/Cleaner/Sweeper and Others (Permanent/Casual)
2.3 Operational Success of South East Bank Ltd.

South East Bank Limited is a premier banking institution of the country. It integrates the latest technology into every facet of its operations. Their relentless effort to maximize shareholders wealth continued in 2005 amid a state of stiff competition, more comprehensive 5
regulatory environment and ever increasing customer expectations. From the year of 2005 they have been focusing on increase of fee based income, diversification of revenue earnings through a wide range of financial products and services. They made an operating profit of BDT 1473.44 million and thus posted a growth of 82.21% over the last year. They made significant progress in enhancing profitability of the bank compared to that of last year. The quality and timely availability of management information have improved significantly. These combined with sharp monitoring practices, enabled the bank to manage the business better and identify any problem area sooner than later.
3.0 Definition of Human Resource Planning

Human Resource Planning is the personnel process that attempts to provide adequate human resources to achieve future organizational objectives. It includes forecasting future needs for employees of various types, comparing these needs with the present workforce and determining the numbers and types of employees to be recruited or phase out of the organizations employment group. In South East Bank the top management examines the environment, analyzes the strategic advantages of the organization, and sets its objectives for the coming period. Then it makes strategic and operating decisions to achieve its objectives. The personnel capabilities of the bank are among the factors analyzed in the strategic management process. Once the strategy is set, personnel do its part to ensure the success of the strategy and achieve the organizations objectives. It does this by comparing the present supply of human resources with projected demand for them. This comparison leads to action decisions: add employees, cut employees, or reallocate employees internally. The importance of HR or staffing planning lies with the contribution it could make to reducing uncertainties within the employment patterns of large organizations .Staffing planning is a critical managerial function because it provides management with information on resource flows that is used to calculate ,amongst other things, recruitment needs and succession and development plans. South East Bank performs HR or employment planning formally. 6
3.1 Functions of HRM in South East Bank Limited

Human resources are critical for effective organizational functioning. HRM (or personnel, as it is sometimes called) was once relegated to second class status in many organizations but its importance has grown dramatically in the last ten decades. Its new importance stems from increased legal complexities the recognition that human resources are a valuable means for improving productivity. And the awareness today of the costs associated with poor human resource management. South East Bank Limited realized that the effectiveness of their HR function has a substantial impact on the bottom line performance of the organization. Poor human resource planning can result in spurts of hiring followed but layoffs- costly in terms of unemployment compensation payments, training expenses and morale. Therefore, this organization is developing strategic HR plans and integrating those plans with other strategic planning activities. The HR department of SEBL is headed by an Executive Vice President. There are many other officials and staffs for the smooth functioning of HRD of SEBL.
3.2 Training and Human Resources

Skilled human resource is life blood for development of any service industry. With this end in view the Training Institute of the Bank situated at 4 th Floor of Head Office, Dhaka nicely decorated and equipped with the sophisticated instruments has been striving to bring about a qualitative change in human resources of the bank by imparting continuous different training throughout the year. Besides these, a number of executives and officers were sent to various Training Institutions including Bangladesh Institute of Bank Management (BIBM) and abroad for higher training.
4.0 Definition of Recruitment

Recruitment is that set of activities an organization uses to attract job candidates who have the abilities and attitudes needed to help the organization achieve its objectives. Another useful definitions is searching for and obtaining potential job candidates in sufficient numbers and quality so that the organizations can select the most appropriate people to fill its job needs The recruitment process has two key aims: the attraction and retention of the interest of suitable applicants, and the projection of a positive image of the organization to those who come in contact with it. Recruiting is related directly to a number of other personnel activities. Employment planning determines the number of employees needed, and all subsequent personnel activities (such as selection, orientation, development, compensation) cannot be effective unless good employees have been recruited. The recruiting process begins with an attempt to find employees with the abilities and attitudes desired by the organization and to match them with the tasks to be performed. Whether potential employees will respond to the recruiting effort depends on the attitudes they have developed toward those tasks and the organization, on the basis of their past social and 8
working experiences. Their perception of the task will also be affected by the work environment in the organization. As far as we come to know South East Bank has a Human Resource Division charged with overseeing these activities. Responsibility for HR activities, however, is shared between the HR division and other divisions including the Zonal and Branch offices. The HR division shoulders the responsibility to recruit and initially screen candidates and also select the place where the new employee will work. The HR division establishes performance appraisal policies and procedures whereas their immediate superiors do the actual evaluating and coaching of employees
4.1 Recruitment Process in South East Bank

After completion of planning phase the bank frames a recruitment strategy to look for suitable applicants which are shown below: Prepare a message incorporating the required competence of the prospective applicants, proposed emoluments, and other terms and conditions of recruitment. In fact, they use traditional type of messages. Subsequently they publish the message through the print media. They use telecommunication as well as personal interaction in case of recruitment in the top level executives only. They use open recruitment method. They do not take assistance of any external recruitment agency for this purpose. Their recruitment process is exclusively individual and they do not participate in cooperative recruitment alliances. SEBL adopts centralized recruitment procedure. The recruitment is made through written test and viva-voce to be decided by the Managing Director/ Executive Committee.
4.2 Developing recruiting Policy

The power of all appointments/ recruitment up to the rank of Executive Vice President lies with the Managing Director who exercises the power as per policy and guidelines approved by board (in line with Bangladesh Bank BRPD circular No.16 dated 24.07.2003). Such proposal is initiated by the head of the Human resources Division with his comments and placed to the Managing Director for final approval. For appointments/ recruitment of manpower in SEBL, the concerned head of Human Resources Division takes interview/viva voce up to the rank of Probationary Officer and above and if the candidate is found suitable, the proposal is placed to the Managing Director with his observation for final order. The Managing Director approves the proposal with or without any change. Verdict of the Managing Director is final in the matter of recruitment /appointment.
Number of Applicants: As far as we understood SEBL receives a huge number of applications in response to their each advertisement. For their last advertisement they received total 2545 applications for the position of probationary officer. Initial Screening: They use for automation method for initial screening for smooth functioning of their strategy. Last year they found 1990 valid applications out of total 2545.
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5.0 Criterion of External Recruitment

A sample of message published in print media for recruitment of probationary officer in the year 2006 by South East Bank Limited is appended below, which will also reflect source and type of message used by this organization. This message was published in a number of leading dailies of the country. 1. Educational Qualification Master degree in any discipline from any recognized University/ Educational Institution with at least 03 (three) First Divisions/ Classes or GPA 3.75 out of 5 or GPA 3 out of 4 & 1 (one) Second Division/ Class or GPA 2.75 out of 5 or CGPA 2.50 out of 4 in any of the examinations from S.S.C. to Masters or equivalent thereof. Or Four-years Integrated Honours Graduate in any discipline from any recognized University/ Educational Institution with at least 02 (two) First Divisions/ Classes or GPA 3.75 out of 5 or GPA 3 out of 4-one invariably in Honours Examination and the other either in S.S.C. or in H.S.C. examination or equivalent thereof & 1(one) Second Division/ Class or GPA 2.75 out of 5 or CGPA 2.50 out of 4 in S.S.C.or H.S.C. examination or equivalent thereof. The component authority may change the above criteria as it deems fit. 2. Upper age limit 11
Upper age limit will be decided as per Banks Employees Service Regulations. Upper age limit may be relaxed up to 32 years for the employees of this bank only having requisite qualifications. 3. Period of Probation The probation period is 1(One) year. 4. Remuneration To be fixed by the component authority/ management at the time of recruitment. 5. Confirmation May be confirmed for the particular position applied, after completion of the probationary period successfully.
6.0 Internal Recruitment

Every organization has to undergo both internal and external recruitment process to make better human resources management. South East Bank also takes the same strategy and also go through a traditional mobility path to give incentive to the suitable internal candidates. Usually recruitments in this organization is done on upward mobility.
6.1 Recruitment System in South East Bank Limited

Considering the policy and procedure of internal recruitment system in SEBL, it is assumed that the organization follows the closed internal recruitment system in terms of their own perspective. This organization has prepared a framework for internal recruitment which is shown below: HRD identifies the vacancy Searches files of the prospective candidates Prepares list of eligible candidates by evaluating the criteria Places the list to the authority for final consideration Authority which consists of a committee takes final decision HRD conveys the decision of authority to the selected candidates
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6.2 Authority for promotion

All promotion up to the rank of Assistant Managing Director of the Bank is made by a committee constituting under: Managing Director Deputy Managing Director-1 Deputy Managing Director-2 As Chairman As Member As Member
Concerned Head of the Department As Member The above Committee evaluates the performance of each eligible candidate and gives marks as per criteria mentioned on the basis of which promotion is given. But in case of any difference of opinion among the committee members while making assessment about any eligible candidate, the verdict of the Managing Director is final in that case and as per his decisions the promotion is made.
6.3 Development of internal recruitment guide

The power of promotion of all employees up to the rank of Executive Vice President lies with the Managing Director who exercises the power as per policy and guideline approved by Board. The Managing Director may form one or more promotion Committee with the executives as per his own discretion from time to time to deal with any promotion cases of any particular time. The Promotion Committee after proper evaluation and assessment of individual employee as per approved criteria furnish the names of the probable candidates with their recommendation for promotion to the Managing Director who approves promotion of required number of employees which he may deem it necessary from that list. The Managing Director has the option to approve of any employee beyond the list if the managing Director thinks it fit.
6.4 Policy of the Bank for Internal Recruitment

Since the organization possesses a large number of human resources they have their own internal policy for internal recruitment which they adhere for execution. Eligibility criteria: Probationary Officer and Senior Officer: 13
3 years service in the same grade as on the date to be decided by the management. Evaluation as per marketing system.
Management Trainee and Executive Officer,: 3 years service in the same grade as on the date to be decided by the management Evaluation as per marking system. Potentiality and suitability for higher assessment
Principal Officer: Educational Qualification: Graduation 5 (five) years experience in a bank with & 3 (Three) years as Executive Officer or in an equivalent position. Senior Principal Officer: Educational Qualification: Graduation 8 (Eight) years total service & 3 (Three) years experience as Principal Officer or in an equivalent position. Assistant Vice President: Educational Qualification: Graduation 10 (Ten) years total service & 3 (Three) years experience as Senior Principal Officer or in an equivalent position. Senior Assistant Vice President: Educational Qualification: Graduation 15 (Fifteen) years total service & 3 (Three) years experience as Assistant Vice President or in an equivalent position. First Vice President: Educational Qualification: Graduation 18 (Eighteen) years total service & 3 (Three) years experience as Senior Asst. Vice President or in an equivalent position. Vice President: 14
Educational Qualification: Graduation 20 (Twenty) years total service & 3 (Three) years experience as First Vice President or in an equivalent position.
Senior Vice President: Educational Qualification: Graduation 20 (Twenty) years total service & 3 (Three) years experience as Vice President or in an equivalent position. Executive Vice President: Educational Qualification: Graduation 22 (Twenty) years total service & 3 (Three) years experience as Senior Vice President or in an equivalent position. Senior Executive Vice President: Educational Qualification: Graduation 25 (Twenty) years total service & 3 (Three) years experience as Executive Vice President or in an equivalent position. Deputy Managing Director: Educational Qualification: Graduation 25 (Twenty) years total service & 3 (Three) years experience as Senior Executive Vice President or in an equivalent position. Managing Director: Educational Qualification: Graduation 27 (Twenty) years total service & 3 (Three) years experience as Deputy Managing Director or in an equivalent position.
6.5 Basis of assessment

a) Length of service b) Service records c) Past performance 15
d) Annual Confidential Report (ACR) e) Educational and professional qualification f) Knowledge, training, experiences in different branches/ offices of banking including Foreign Exchange g) Promotion committees assessment on the basis of results on the above points and on the potentiality, fitness for higher assignment and efficiency of individual employees. Personal knowledge of the Committee Members will also work in determining the efficiency, ability, salesmanship, usefulness and suitability for higher assignment of the concerned officials. Thus it reveals that the organization takes the method of skill inventories as the source of their internal recruitment.
6.6 Marking System

a) For Seniority in the grade1 (one) marks for each 6(six) months completed service in the grade. b) Educational qualificationS.S.C. H.S.C. Graduation Graduation with (Hons) Master degree c) Banking DiplomaPart-1 Part-2 d) Average of last 3 years ACRs A1 A B (very Good) (Good) ( Average) 05 Marks Nil Nil 03 Marks 04 Marks 05 Marks 05 Marks 03 Marks 05 Marks 35 Marks 1.6 Marks 1.0 Marks 0.5 Marks Nil 40 Marks 100 Marks 16 15 Marks
C & D (below average & poor ) e) Promotion Committees Assessment Total
6.7 Recruitment Budget

Expenditure for internal recruitment of the organization is too nominal to mention. As such the organization does not make any internal recruitment budget.
7.0 Selection process of SEBL

The Recruitment and Selection process promotes successful hiring decisions that can truly impact the success of a department or faculty. Selection is a process of assessing and evaluating people for purposes of determining the likely fit between the person and the job. The selection of a candidate with the right combination of education, work experience, attitude, and creativity will not only increase the quality and stability of the workforce, it will also play a large role in bringing management strategies and planning to fruition. Transition from Recruitment to Selection: Recruitment Process: Advertisement Data processing in computer 17
Scrutiny of Applications received Selection Process: Issuance of letter to the eligible candidates advising to appear in a written test Arrangement of written test Preparation of Merit list of written test. Issuance of Viva-Card to the eligible candidates who have qualified in the written test. Arrangement of Viva-Voce to be taken by the Bank Management headed by Managing Director as Chairman. Preparation of final merit list on the basis of the written test & Viva. Issuance of Appointment letters to the selected candidates
7.1 Selection Forms

South East Bank Ltd. always prefers Paper and pencil and oral as forms of selection from they have started their journey since 1995. Sources: Examination is taken by the bank management or by any trusted & experienced Organization like BIBM & IBA or Commerce Faculty of University of Dhaka. Method: Question is not meant for specialized field. It covers general knowledge, mathematical term English aptitude. Screening Applicants The following steps are being accomplished by the bank while screening the applications, Screened out applications or resumes through computer by using the key words Specify the short-list criteria Record all short-listed applicants
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7.2 Short-List Criteria

Short-listing criteria is developed in consultation with the Top level manager of HRD. The criteria are reasonably discernable from the written application, as that is the only information available from all candidates. We can consider the following points: Minimum educational requirements Related work/volunteer experience ( if any) Age of candidate Written communication skills Knowledge of current affairs.
7.3 Final Selection Criterion

Interview Medical fitness Intention to accept service rule of the organization.
7.4 Interview Panels

Interview panel constitutes the following members: Managing Director Deputy Managing Director-1 Deputy Managing Director-2 Executive Vice President (Head, HRD) -As Chairman -As Member -As Member -As Member
7.5 Substantive Assessment Methods

South East Bank Ltd. has used different assessment methods to select employees for hire from the finalists Background Checks: Background Checks defines checking criminal records, falsified educational credentials, and other serious liabilities, background checks only reveal information when an individual has been caught. Personality Tests: Here South East Bank Ltd. considers traditional assessment tools used in the hiring process. These assessments measure personality characteristics. 19
Abilities Assessments: When applicants are tested for both abilities and personality, employers find they are hiring the right people. Offer receivers After going through the interview section, the finalists who get the job finally are called offer receivers. When all discussion is complete, and the Selection Panel has made its decision, a formal offer is being made to the successful candidates. Appointment letter makes this offer. It is not necessary that all the offer receivers will join. In case of South East Bank Ltd. the offer receivers have to go through a medical test, which assures that the final new employees are fit enough for the required positions and will be able to handle pressure. New hires Finally who ever pass the medical test and ready to join are become the new hires. At this stage they are supposed to fill in agreement form and some other documents. Subsequently they have to undergo the following processes: Orientation Informal and formal training Final posting
7.6 Budget
South East Bank hires a good number of employees every year at a time. This involves a considerable amount of money. Thus they need a flexible budget to go through the process. We learnt that they receive tk250/= only along with each application. They need to spend a big amount of money to conduct the written examination which is almost covered from the application fee they receive.
8.0 Findings and Recommendation

Required Academic qualification is standard in terms of our country. Because, only high C.G.P.A. does not mean well qualification. Candidates studied in any discipline are eligible to apply. Therefore they are contributing greatly to reduce unemployment problem in our country. Candidates need no previous experience to offer them for the job in South East Bank Ltd. 20
Selected candidates need not go for a long term contract to remain in the organization. As such high rate of turnover is observed. To accomplish entire procedure of recruitment and selection the bank takes too much time. Consequently the candidates have to wait for a long time. Receiving application fee is not reasonable in context of socio economic position of country.
9.0 Conclusion:
Human Resource Management system is gradually developing all over the world. In Bangladesh, the HRM concept is also developing and the organizations are re-shuffling the exiting HRM system.
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South East Bank Limited has its high acceptance in the market among the first generation banks. It can grab this opportunity easily by introducing new highly demanded services. In this perspective South East Bank Ltd is also trying to follow and regulate the best human resource planning to incorporate in this operation. South East Bank Ltd believes like the other financial institutions of Bangladesh and World by following their HRM system to develop the best practice of Banking Human Resource Management.
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Strategic Recruitment Procedure in Banking Sector: A Case Study based on South East Bank Limited

1.1 Purpose of the Report

2.0 Overview of South East Bank Ltd.

2.1 Vision Statement

2.2 Mission Statement

2.3 Organizational Structures of South East Bank Ltd

2.3 Operational Success of South East Bank Ltd.

3.0 Definition of Human Resource Planning

3.1 Functions of HRM in South East Bank Limited

3.2 Training and Human Resources

4.0 Definition of Recruitment

4.1 Recruitment Process in South East Bank

4.2 Developing recruiting Policy

5.0 Criterion of External Recruitment

6.0 Internal Recruitment

6.1 Recruitment System in South East Bank Limited

6.2 Authority for promotion

6.3 Development of internal recruitment guide

6.4 Policy of the Bank for Internal Recruitment

6.5 Basis of assessment

6.6 Marking System

C & D (below average & poor ) e) Promotion Committees Assessment Total

6.7 Recruitment Budget

7.0 Selection process of SEBL

7.1 Selection Forms

7.2 Short-List Criteria

7.3 Final Selection Criterion

7.4 Interview Panels

7.5 Substantive Assessment Methods

8.0 Findings and Recommendation

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