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HR Practice of IDLC Finance Limited:

Recruiting, Selecting and Training

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HR Practice of IDLC Finance Limited:
Recruiting, Selecting and Training

Acknowledgement

At first we desire to express our deepest sense of gratitude of almighty Allah.

With profound regard we gratefully acknowledge our respected course teacher Tamima
Hossain, Lecturer, M.H School of Business, Presidency University for his generous help and
day to day suggestion during the survey.

We like to give thanks especially to Hasan Tuhin, HR executive, Ghulshan branch, IDLC
Finance limited and our friends and many individuals, for their enthusiastic encouragements
and helps during the preparation of this report us by sharing ideas regarding this subject and
for their assistance in typing and proof reading this manuscript.

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TABLE OF CONTENTS

PARTICULARS PAGE NO

Executive Summary……………………………………………………….………………………...... 1

Introduction ……………………………………………………………………….………………...... 2

Objective of the Report ………………………………...…………….…………...………………….. 2

Methodology ……... …………………………………...………………………...…………………… 3

Limitations of the study………………………………...…………….…………...………………….. 3

Overview about the organization…………..……………………………………...………………...


4

IDLC at a Glance……………………………………………………………………………..……. 4

Company Profile ………..………………………………………..…………………………..…..... 4

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History - Key Milestones …………………………………………………………………..….…... 5

IDLC's Products and Services………….……………………….………….…………………..…... 6


Sources of Funds……………………………………..………………...….………………...……... 7

HR practice in IDLC ………………………………………………………..…………………...…...


7

Recruiting process that IDLC follows ………………….…….…….…….………………………...


7

Selection ………………..…………………………………..…………….………………………... 9

Training and Development……………………………………………….....……………………... 9

Performance Management………………………………………………..…..…………………... 10

Size of the workforce…….…………………………………………………………………………... 10

Business Growth in Market…………………………………………………………………………...


10

IDLCs Market position………………………..……………………..……………………..………... 10

Future Plan……………………………………………………………….…………………………... 10

Work environment & work culture at IDLC………………………………..………………………... 10

Career progression opportunities at IDLC………………………………….………………………... 11

How to apply for a position at IDLC…………………………………………………….…………... 11

IDLC’s Vision, Mission, Goal and Corporate Philosophy…………………...………….…………... 12

Conclusions ……………………………………………….………………..……..………………… 13

Reference ………………….……………………………………………..…………………………..
14

Questionnaire………………….………………………………………...………………………….. 15

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Executive Summary:

In this study, we try to investigate the challenging career opportunities for young
professionals over the last 25 years that IDLC provided. How their goal is to attract, retain
and motivate the most competent people.

This study emphasis on how IDLC maintain high recruitment standards and its providing
local and overseas training to its employees. This is done with a view to encourage human
resources development by continuously upgrading human resources skills, abilities and
knowledge and to meet organizational needs to face future challenges in the ever changing
financial services industry. We identify employees' relevant and proper training and
development needs and opportunities to pursue their career goals.

We summed up with view of IDLC is a performance driven organization and career


development opportunities are based on merit, performance and productivity.

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Introduction:

All organizations have people, IDLC have human resources. Regardless of the size of an
organization or the extent of its resources, the organization survives and thrives because of
the capabilities and performance of its people. The activities to maximize those capabilities
and that performance are necessary regardless of whether the organization refers to them as
Human Resource Management.

It’s high time for all organizations to recognize that the real challenge for Human Resource
Management is to lead the way on several strategic fronts - development of formal systems
for creating a “learning” organization, effective deployment of human resources for
maximum return to the company, and enhancing the competencies of the workforce. Senior
Management should take a much broader and strategic view of the HR Function, using it to
maintain or create new competitive advantages for the organization. Ultimately, the HR
management should be a major strategic player in how the organization executes its overall
strategic plan

Therefore, as we are the student of BBA program, we need to erudition HR practice very
effectively. As a part of our schooling, we already have completed a survey in IDLC Finance
Limited about their employee’s recruiting & selecting and training process.

Objective of this Report:


The main objective of the report is comparative analysis and to examine some data and trends
on recruiting and training method that are using IDLC Finance Limited. This report will
reveal how IDLC Finance limited focusing on recruiting & selecting fresh employee and job
training.

This objective comprises three main goals:

1. To highlight organization recruiting, Selecting and training process.

2. Provide Company overview

3.To provide market overview and analysis

That is why we tried to find out the turnover situation and actual growth in this organization.
We also tried to know the organization’s HR code of conduct, their future plan and the rules
and regulations of this organization. Knowing about this organization’s HR management
motivation techniques were also an objective in this report.

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Methodology:

This report relies principally on the contributions of two sources:

 Primary Sources
 Secondary Sources
At first, we went to the institution with a set of questionnaire. We interviewed the employee
of the organization based on the open and closed ended questionnaire. From these ways, we
collect necessary information for our report.
Then we visited the institution’s website to know about organization. We collected some
basic information from the website and analyzed the information.

In preparing this report, we use MS Ward 2007 and Excel 2007 Worksheet to illustrate the
numeric data. To include graphical content we use line and Bar chart.

Limitations of the study

There were some obstacles, which were hard to meet up with. The limitations are:
 Lack of adequate information due to confidentiality.
 Lack of documented and concrete secondary materials.
 Direct observation of the customer service of the company requires extensive time
involvement, which may not be possible.
 Organizational personnel’s reluctance to answer the questions.

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Overview about IDLC:

IDLC at a Glance

IDLC Finance Limited commenced its journey in 1985, as the first ever leasing company of
the country. In 1995, IDLC was licensed as a Financial Institution by the country's central
bank, Bangladesh Bank, following the enactment of the Financial Institution Act 1993. Over
the last two decades, IDLC has grown in tandem with the country's transition into a
developing country and has emerged as Bangladesh's leading multiproduct financial
institution. To encapsulate the evolving nature of the company, IDLC has changed its name
to IDLC Finance Limited from earlier Industrial Development Leasing Company of
Bangladesh Limited in August 2007. Since 1985, when IDLC was formed as the pioneering
leasing company in Bangladesh, the company continues to evolve as an innovative financial
solutions provider. The company is now able to offer its customers, integrated and
customized financial solutions - all under one roof. IDLC’s wide array of products and
services range from retail products, such as home and car loans, corporate and SME products
including lease and term loans, structured finance services ranging from syndications to
capital restructuring and a complete suite of merchant banking and capital market services.

Company Profile:

IDLC Finance Limited is a multiproduct financial institution, established in 1985 with the
collaboration of reputed international development agencies such as:

• Korean Development Leasing Corporation (KDLC), South Korea


• Kookmin Bank, South Korea
• International Finance Corporation (IFC) of the World Bank Group
• Aga Khan Fund for Economic Development (AKFED)
• German Investment and Development Company (DEG)

The primary goal of IDLC was to help modernize the financial services industry, by
introducing modern modes of financing hitherto unknown to Bangladesh. This, we set about
to do, by pioneering the launch of a multitude of financial products and services.

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History - Key Milestones

May 23, 1985 Incorporation of the Company


February 22, 1986 Commencement of leasing business
October 1, 1990 Establishment of branch in Chittagong, the main port city
March 20, 1993 Listed on the Dhaka Stock Exchange
February 7, 1995 Licensed as a Non-Banking Financial Institution under the Financial
Institutions Act, 1993
November 25, 1996 Listed on the Chittagong Stock Exchange
May 27, 1997 Commencement of Home Finance and Short Term Finance
operations
January 22, 1998 Licensed as a Merchant Banker by the Securities and Exchange
Commission
January 15, 1999 Commencement of Corporate Finance and Merchant Banking
operations
January 29, 2004 Opening of the first retail focused branch at Dhanmondi
June 29, 2004 Opening of Gulshan Branch
November 22, 2004 Launching of Investment Management Services "Cap Invest"
February 7, 2005 Issuance of Securitised Zero Coupon Bonds by IDLC Securitisation
Trust 2005
September 18, 2005 Launching of Local Enterprise Investment Centre (LEIC), a centre
established for the development of SMEs with the contribution of the
Canadian International Development Agency (CIDA) of the
Government of Canada
January 2, 2006 Opening of SME focused branch at Bogra
April 6, 2006 Opening of Branch at Uttara
May 18, 2006 Opening Merchant Banking branch in the port city of Chittagong
July 1, 2006 Relocation of Company's Registered and Corporate Head Office at
own premises at 57, Gulshan Avenue
September 18, 2006 Commencement of operation of IDLC Securities Limited, a wholly
owned subsidiary of IDLC
March 14, 2007 Launching of Discretionary Portfolio Management Services
"MAXCAP"
August 5, 2007 Company name changed to IDLC Finance Limited from Industrial
Development Leasing Company of Bangladesh Limited

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December 3, 2007 IDLC Securities Limited Chittagong Branch commenced operation
December 18, 2007 IDLC Securities Limited DOHS Dhaka Branch opened
January 6, 2009 IDLC Finance Limited and IDLC Securities Limited open Sylhet
branches

IDLC's Products and Services

IDLC's product and service offerings


include: Corporate Services:
1. Project Finance Appraisal
Debt Products: 2. Project Loan Syndication
1. Lease Finance 3. Working Capital Arrangement
2. Term Finance 4. Syndication Agency services
3. Domestic Factoring of Accounts 5. Refinancing arrangements
Receivable 6. Corporate Financial Advisory
4. Bill/Invoice Discounting 7. Securitization of Receivables
5. Work Order Finance 8. Trusteeship Management
6. Corporate Real Estate Finance 9. Professional supports to SMEs
7. Real Estate Developer Finance
8. Home Loans with Home Loan Shield
9. Home Equity Loans
10. Car Loans for Individuals
11. Business Loan
12. Machinery Loan
13. Double Loan
14. Festival Loan
15. Personal Loan

Investment Products:
1. Common Equity investments
2. Preferred Equity Investments
3. Bonds

Liability Products:
1. Term Deposit Schemes
2. Debentures
3. Securitized Bonds

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Sources of Funds

IDLC collects funds from a wide range of sources including financial instruments, loans from
banks, their own equity as well as deposits from institutions and the public. The major supplier
of fund is Standard Chartered Bank for IDLC. Line of credit from banks also constitutes the
major portion of total funds for IDLC. Deposit from public is another important source of fund
for IDLC, which has been increasing over the years. IDLC is allowed to take deposits directly
from the public as well as Institutions. According to the central bank regulation, IDLC has the
restriction to collect public deposits for less than one year, which creates uneven competition
with banks as banks are also exploring the business opportunities created by IDLC with their
lower cost of fund. Although recent reduction of the minimum tenure of the term deposit from
one year to six months for institutional investor has had a positive impact on their deposit
mobilization capacity. Now IDLC can develop attractive term deposit products of different
maturities to have access to public deposits as these are one significant source of their funds.

HR practice in IDLC:

IDLC’s HR Vision:

IDLC believes that its human resources are its greatest assets and recognize them as building
blocks on which Company's performance and development are based. IDLC continues to
develop and implement appropriate human resources management policies and practices to build
up its employees, and to ensure their optimum contribution towards the achievement of corporate
goals. As our human resources give the organization a significant competitive edge, we continue
our policy of recruiting best people and implementing programs to develop and retain high
quality human resources.

Recruiting process that IDLC follows:

The selection of external recruits consists of the following steps:


1. CV Submission

Potential candidates interested in joining the bank are required to send their complete
curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to the
candidate's email.

2. Application Evaluation

The Human Resources department evaluates all incoming applications, against


prerequisite abilities and skills set for all current openings. All applications are kept based on
strengths and specialization, for future reference.

3. Ability Tests

Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal,
English and psychometric, when deemed necessary.

4. Capability Based Interviews

To ensure that our recruitment process is fair and consistent, all candidates who are
successful at the exams are invited for a capability based interview. Interviews are based against
capabilities, required for each position for which the candidate is interviewed for. A capability or
competency is an ability described in terms of skills & behaviors that are essential to effectively
perform within a job.

5. Reply Letters

At all stages of the process candidates are kept informed of the status of their application
with an email reply letter.

6. Job Offer

If a candidate successfully reaches the final stage, a position offering is made in


conjunction with a competitive reward package.

Internal selection is done through competency based recruiting, succession process.

IDLC uses some external sources for recruitment. These are:

• Internet
• Off shoring
• Referrals
• Advertising
Internal recruiting is very high in IDLC. IDLC’s training and development activities are very
high in quality so the recruiters emphasize to recruit internal capable candidates for the
respective post. IDLC also uses HRIS for succession planning. It is also a method of the internal
recruitment of IDLC.

Selection:
In IDLC If a candidate completes the telephone interview successfully, they will invite to the
location most appropriate to them. Face-to-face selection is done in the head HR departments’
office where the job is described eventually.

The final step to success

It is a candidate’s opportunity to meet and find out as much as possible about their experiences.
IDLC wants candidates to be able to make an informed decision a candidate should receive an
offer.

There are some techniques that IDLC Finance ltd. followed:

• Face-to-face interview

• Written case study

• Presentation

This is our opportunity to see how candidates perform in a number of different situations, against
clearly defined criteria. “Head Hunting” process is very effective for IDLC. Through this they
can easily recruit and select top level managers, though they are offering a very attractive
compensation.

Training and Development:


IDLC believes our primary competitive advantage comes from their employees. It is their ability
to provide a superior customer experience to its customers that sets it apart from other financial
services companies. In the ever changing financial services industry, all of us must continuously
upgrade our skills and knowledge in order to maintain this competitive advantage.

IDLC’s goal is to attract, retain and motivate the very best, and to do that it supports training,
development, and business education through the following:

Internal Training Programs


Seminars, workshops and locally tailor made training on a variety of topics are offered directly
by IDLC Training and Development Department.

External Courses

Job related courses, seminars, workshops and conferences developed and presented at IDLC
Offices.

Performance Management

IDLC has a strong HR culture in their organization. Being a local company it has their own way
of evaluation. Through different formats of evaluation they measure their employees’
performance. Participant diary and observation these two methods are applied for evaluation.
After evaluation using some metrics comes out the performance appraisal of employees. Then it
is decided whether the employee need more training sessions or developments.

Size of the workforce:

IDLC has one head office and 13 branch office and they run full functionally all branches office
with above 200 employees.

Business Growth in Market:

IDLCs business growth is 60% per month.

IDLCs Market position:

IDLC is in 5th position in overall financial industry.

Future Plan:

IDLC future plan is to launch a bank within two years.

Work environment & work culture at IDLC:


IDLC is committed to maintain a work environment, free from discrimination based on race,
religion, creed, sex, age or any other category. IDLC aims to maintain workplace and
environmental conditions which permit employees to work to maximum effectiveness and to
their full potentials.

IDLC creates an environment of trust and support within the organization which encourages
employees to work well together as a team and at the same time, to be innovative and creative.
They appreciate effective internal communications and free flow of ideas, fairness, commitment,
teamwork and highest standards of professional excellence and integrity.

Career progression opportunities at IDLC:

IDLC is an equal opportunity employer. It has provided challenging career opportunities for
young professionals over the last 24 years. IDLCs goal is to attract, retain and motivate the most
competent people.

IDLC maintain high recruitment standards. It’s also provides need based in-house, local and
overseas training to its employees. This is done with a view to encourage human resources
development by continuously upgrading human resources skills, abilities and knowledge and to
meet organizational needs to face future challenges in the ever changing financial services
industry. IDLC identify employees' relevant and proper training and development needs and
provide them with necessary opportunities to pursue their career goals.

IDLC is a performance driven organization and career development opportunities are based on
merit, performance and productivity.

How to apply for a position at IDLC:

Who want to be a member of the IDLC family, the largest and leading non-banking financial
institution of the country, s/he should send their curriculum vitae to:

The Human Resources Department


IDLC Finance Limited
Bay’s Galleria (1st Floor)
57 Gulshan Avenue
Dhaka 1212
Email:jobs@idlc.com

IDLC’s Vision, Mission, Goal and Corporate Philosophy:


Vision

IDLC want to be the best performing and most innovative financial solutions provider in the
country.

Mission

IDLC desires to create maximum possible value for all our stakeholders by adhering to the
highest ethical standards.

For IDLC Customers: Relentless pursuit of customer satisfaction through delivery of top
quality services.

For IDLC Shareholders: Maximize shareholders' wealth through a sustained return on their
investments.

For IDLC Employees: Provide job satisfaction by making IDLC a centre of excellence with
opportunity for career development.

For the Society: Contribute to the well being of the society, in general, by acting as a
responsible corporate citizen.

Goal of IDLC:

IDLC wants Long term maximization of stakeholders' value in a socially responsible manner.

IDLC’s Corporate Philosophy

Discharge our functions with proper accountability for actions and results and bind ourselves to
the highest ethical standards

Conclusion:

In recent years, Human Resources issues have become central to business deliberations in this
ever-changing business environment. Today's most successful organizations recognize the
bottom line impact of the emerging HR practices. Effective Human Resources Departments are
upgrading themselves every now and then to attract, develop and retain talents. It is apparent that
effective HR practices deliver shareholder return much higher than those of companies without
such practices. It is important for HR professionals to acquaint with HR best practices to build
organizational capabilities in delivering sustainable results.

IDLC is a big finance organization in Bangladesh. This organization is also very important and
influential in the industry. Human resource department is a basic part of business now days. So
to run a business this department has a lot of activities to do. IDLC’s HR department is the
department from where the organization is actually monitored and controlled over time. IDLC
is operating for 25 years and have grown significantly. So after all the details
it is clear that to run an organization effectively and efficiently it must have to do some HR jobs
because the resource of an organization helps it to grow. And the effective use of the resource
makes the organization to reach up to its expectations and objectives.
Reference:

IDLC Official Home Page: www.idlc.com

Gary Dessler “Human Resource Management,” Prentice-Hall of India Private Limited, 10th
edition.

http://www.exinfm.com/board/elevating_hr_function_01.htm
http://www.scribd.com/search?query=report+on+HR+practice
http://humanresources.about.com/od/jobdescriptions/f/hr_job_mgr.htm
http://www.ehow.com/way_5143045_employment-recruitment-
techniques.html

Human Resource Management Practices in Bangladesh:http//www.hrmpb.com/ Retrieved


date June 20, 2007.
Human Resource Management Practices in the 21st Century: http//www.hrmp21.com/
Retrieved date May10, 2007.
Questionnaire

On

Human Resource Management (HRM) Practices of

Bangladesh

The questionnaire has been prepared as part of survey about knowing the employee recruiting
and training process of a financial organization, as we select IDLC Finance Limited. All the
data and information collected by this instrument will be used only for the purpose to prepare a
research paper. Open ended and closed ended questions are used in this questionnaire. The
overall estimated time for ticking up is 10 minutes. Thank you for your participation.

1. In your organization which department is mainly practice?

HRM (Human Resource Management) PM (Personnel Management)

2. Who is the responsible person for planning the HRM/PM in your organization?
…………………………………..
…………………………………………………………………….………………….
……………………............……………………………

3. In the recruitment process what kind of sources is used by your organization?

External Internal

4. For recruitment the employee which things is followed by your organization?

Advertisement Campus Recruiting

5. In case of selection: How your organizations select the best candidate among the
available candidate?
…………………………………………………………………………….
………………………………………………………………………….
……………………………
6. How do you evaluate the working efficiency of the employees of your organization?
……………………………………………………………………………………………
………………………………………………………………………………………

7. For the job analysis of the employee which method is performed by your organization?

Observational Interview Questionnaire Functional

8. For developing the working efficiency of the employees do you provide any training
program?

…………………………………………………………………………………………………
……………………………………………………………………………………………

9. If you arrange any training program for the employees, which type of training programs
are those?

……………………………………………………………………………………………
………………………………………………………………………………………