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Recruitment and Selection Process of Eastern Bank Ltd.

By: Shaiful Islam

Introduction

Personnel or Human Resource is the vital factor of sustaining an organization


whether production or service oriented. In production oriented organization the
capacity, skill, knowledge etc. are not so visible to the general public unlike service
oriented organization.

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

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

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

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

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

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

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

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

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

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

Objective of the study


By doing the assignment we’ll be able to identify how the bank recruit and select
personnel it requires to accomplish its day to day tasks. We’ll also be able to identify
the process described in the text and their application in real life scenario in an
organization like bank.
By this we’ll be able to differentiate the process between the text and bank practice.

And the most important thing is that, we’ll get a clear idea, how personnel are
recruited and selected in a bank, so that we can prepare ourselves according to that
level. This will greatly benefit us to get ourselves recruited and selected without any
serious hassle and make our career with more flexibility.

Limitations of the study


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

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

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

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

Questionnaire

Questionnaires are an inexpensive way to gather data. A well-designed


questionnaire that is used effectively can gather information on both the overall
performance of the test system as well as information on specific components of the
system.

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

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

For the betterment of understanding the questionnaire is enclosed herewith the


assignment.

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01.00 Background of the Organization

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

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

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

01.02 Mission

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

• We will constantly challenge our systems, procedures and training to maintain


a cohesive and professional team in order to achieve service excellence.

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

01.03 Values
• Openness
• Trust
• Commitment
• Integrity
• Service excellence
• Responsible Corporate Citizen

01.04 Management team


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

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

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

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

01.05 Contract Address


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

Phone: + 88 02 9556360
+ 88 02 9558392

Fax: + 88 02 9558392

Swift Code: EBLDBDDH

Address: Head Office


Eastern Bank Ltd.
10 Dilkusha C/A

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Jiban Bima Bhaban, Dhaka
Bangladesh

01.06 EBL Internet Banking


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

01.07 Product and Service

• Consumer & SME Banking


• Corporate Banking
• Credit
• Finance
• Human Resources
• Information Technology
• Operations

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

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

02.00 Recruiting

It is a process of discovering of potential candidates for the actual and anticipated


organizational vacancies.
In other words, recruiting is a linking activity- bringing together those with jobs to fill
and those seeking jobs.

02.01 Barriers of the Recruiting Success

 Image of the organization


 Attractiveness of the job
 Internal politics
 Government influence
 Recruiting cost

Bank’s Practice

Image of the organization


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

Attractiveness of the job


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

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

Government influence
They don’t even feel any governmental influence.

Recruiting cost
Finally they take the recruiting as costly. And its obvious that taking exam, checking
answer scripts, taking interview cost much to the bank. And its time consuming and

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the top level management need to get them busy for taking interview, giving decision
and so on.

02.02 Recruiting source


Internal source
• Transfer
• Promotion
• Skill inventory
• Referrals

External source
• Advertisement
• Employee Agencies
• University
• Professional organization
• Internet

Alternative source
Temporary help
Employee leasing
Independent contractor

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

02.02.01 Internal Source

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

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

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

Employee Referrals/ Recommendation


It is one of the best sources for individuals who will perform effectively on the job is
recommendation from a current employees.

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EBL prefer recommendation from its permanent employees, because the employees
rarely recommend someone unless they believe that the individual can perform
adequately. Such a recommendation reflects the recommender, and when
someone’s reputation is at stake, bank expects the recommendation to be based on
considered judgment.
For mid level and top level management EBL usually use this source but never for
the Management Trainee Officer (MTO) or fresher.

Positive sides of internal recruiting


o It is a good public relation.
o It builds morale.
o It encourages good individuals who are ambitious.
o It improves the probability of good selection, since information on individual’s
performance is readily available.
o It is less costly then going outside to recruit.
o Those chosen already know the organization.
o When carefully planned, promoting from within can also act as a traing device
for developing middle- and top-level management.

02.02.02 External Source

In addition to looking internally for candidates, it is customary for


organizations to open up recruiting efforts to the external community. This
effort includes the following sources.

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

University
For the entry level position like Management Trainee Officer (MTO) EBL sometimes
advertise in the career counseling of different reputed universities.

Internet
In a modern world internet has profound influence on the recruiting process. It is less
costly and advertisement can be given time and again by this way.
Other then this, the most important benefit is people from all over the country can
see this kind of advertisement. Like there are many students from our country who
study abroad but seek a prestigious job in Bangladesh after completing their study.
They can see this sort of advertisement from abroad and drop their Resume.

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

Unsolicited application

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Other then the above mentioned source, this is another way to find applicant. There
are many people who submit their Resume or CV by hand to the bank’s HR
department. Some of them may have any relative who are already in EBL may in top
positions or someone can be completely unknown.
Sometimes bank use this source when they need to fill a position within very short
time and of course with a minimal cost.

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

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

02.03 Getting into organization


Getting job is a full time activity
Start early
Prepare resume

Bank’s practice

Getting job is a full time activity


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

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

Prepare resume

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

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02.04 Global recruiting

Host country national


Expatriates
Recruiting regardless nationality

Host country national


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

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

Recruiting regardless nationality


EBL doesn’t practice any recruiting policy that includes nationality.

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

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03.00 Selection

The selection process is composed of steps, each of which provides decision


makers with information that will help them predict whether an applicant will be a
successful job performee. Successful selection activities entail a lot of careful
planning and careful thought.

Selection process
Failed to meet minimum Initial screening
qualification

Passed
Failed job specification or
completed application Completed application

Passed

Failed test Employment test

Failed to impress interviewer/ Passed passed


meet job expectation
Comprehensive
Conditional Job
interview
Passed Offer
Passed
Problem encountered
Background
investigation ifPassed
required
Reject Applicant
Passed
Medical/ physical
examination if required
Unable to perform Essential
(conditional job offer
Job Element made)

Passed

Permanent job offer

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

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

03.02 Completed Application Forms

o General Form
o Weighted Form
o Successful Application

Bank’s practice

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

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

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

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03.03 Employment Test

o Performance simulation test


o Work sampling
o Assessment center

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

Performance simulation test


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

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

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

03.04 Comprehensive Interviews


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

o Interview effectiveness
o Impression management
o Behavioral interview

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Bank’s practice

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

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

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

03.05 Background Investigation


It’s the process of verifying information provided by the candidates.

Bank’s practice

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

03.06 Conditional Job Offer


It’s a tentative job offer that becomes permanent after certain conditions are met.

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

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

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

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

03.08 Permanent Job Offer


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

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

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

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

Performance based promotion make the employees more energetic, enthusiastic,


sincere, creative and hardworking, and dedicative to the customer and to the bank
particularly.

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

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

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Appendix

Human Resource Management


By Devid A. Decenzo and Stephen P. Robbins

Human Resource Management


By Fisher

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

Annual report (Eastern Bank Ltd. 2007-8)

Questionnaire

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