Chapter -1

Introduction

1
1.1 Origin of the report:
In today’s world only academic education does not make a student perfect to become
competitive with the corporate & global business world. By doing in internship program,
a student can get the opportunity to learn facing about real business world. Internship is
highly needed to gain idea knowledge and experience. I am a BBA graduate from the
Bangladesh University of Business and Technology (BUBT), one of the reputed
universities in Bangladesh. It has designed its curriculum of the BBA program such a
way that the student graduates will produce. After completing my BBA degree I need to
go further professional experience through internship in a business organization. Al-
Arafah Islami Bank Limited is a place where I have learnt the business dealings. As a
BBA internee I have tried to maintain the pace with the competitive business
environment on official activities culture philosophy norms & styles. It world reflect the
best at any field of my personal life. The accounts manager is my overall guide
philosophy & superior. Receiving his all of cordial support I have been availed the
opportunity to work with office for three months where I acquired idea of real business
and corporate world.

1.2 Significant of the Report:

As a mandatory part of the BBA program, all the student of Faculty of Business,
Bangladesh University of Business and Technology (BUBT) have to undergo 12 week
internship program with an objective to gain practical knowledge about business world.
After this program the students have to submit an internship report, which reflects their
activates during the program. I joined Al-Arafah Islami Bank Limited to undergo this
internship program for the period of 12 weeks starting from November 7, 2016 to
February 7, 2017. My internship report topic is recruitment and selection. This is also
approved by my internal supervisor Mr. Md. Asaduzzaman, Chairman & Assistant
Professor, Department of Management Faculty of Business Administration Bangladesh
University of Business and Technology (BUBT).

2
1.3 Scope of the report
The report entirely discusses the current service offered by “Al-Arafah Islami Bank
Limited” and how they perform different HR practice at Al-Arafah Islami Bank
Limited. The reports discuss the current recruitment policies of the Al-Arafah Islami
Bank Limited. At its top, mid and entry management level employees . All policies of
human resource other than recruitment are excluding in this report.

1.4 Objectives of the report:

Objective of internship program incorporate many things. The objectives of the study are
given below:

1.4.1 Broad objective: The Board objective of the report is to explore and evaluate the
recruitment and selection process of Al-Arafah Islami Bank Limited.

1.4.2 Specific objectives: The following aspects can be listed as the specific objectives
to achieve the broad objective:

a. To explore the recruitment sources of Al-Arafah Islami Bank Limited.

b. To explain the recruitment and selection process of Al-Arafah Islami Bank Limited.

c. To know about the opinion of the respondents regarding recruitment and selection
process of AIBL

d. To recommend some appropriate measures for overcoming the problems.

1.5 Methodology of report:

1.6 Research design:

This research is a descriptive type of research. The report has been developed basically
both on primary and secondary data. In this report I have described the recruitment and
selection process of Al-Arafah Islami Bank Limited.

3
1.7 Types of data:

In this report I have used both primary and secondary data. Primary data is the data
which is observed or collected directly from first hand experiences. Secondary data is
which have already been collected and analyzed by some else and results are undertaken
for the next process.

1.8 Sources of data:

The relevant information is collected from the primary sources and also used the
secondary sources of data. These are given below:

1.9 Primary data sources:

 Through questionnaire survey

 Face to face conversation

1.10 Secondary data source:

The data I have collected from the secondary sources are follows:

 Annual Report of AIBL

 Website of AIBL ( www.al-arafahbank.com )

1.11 Data analysis and reporting:

After collection of entire data, approaches are widely used to analyze and organize the
data. In this process, technological assistance was more significant and indispensable.
Results have been presented in the form of tables and graphs. I have used several tools
for processing, analyzing and preparing the information. After collection of raw data
various types of computer software such as MS word, and MS Excel and MS power
point have been used for editing and processing the data. The whole chapter of analysis
and imprecation is based on the responses of 10 respondents who were administered with
a questionnaire which contain the personal data their views about the recruitment and
selection process of AIBL.

4
1.12 Sampling plan:

 Population : A group of individuals or items that share one or more characteristics

from which data can be gathered and analyzed is called population .Total number of
population was 26 and branch name Al-Arahaf Islami Bank Limited Mirpur-1
Branch.

 Sample unit : The sample unit of the survey was Accounts Manager , HR Manager ,
General Banking in charge , Trainee and Trainee Assistant Officer Cash .

 Sample frame: The term ‘sample frame ‘is defined as the lists from which
individuals are selected. It includes accurate information that can be used to contract
selected individuals. No well structured sample frame was found.

 Sample method: The non – probability convenience sampling method to collect

data.

 Sample size: The sample size was 10 respondents.

1.13 Limitations of the report:

It was a nice experience for me as an intern at Al-Arafah Islami Bank Limited.

The limitations of the report are given below:

As an intern it was difficult for me to collect information about the company’s internal
policies.

 It was difficult to collect information from various personal for their jobs constraint.

 Some of the officers were less interested to respond to my questionnaire.

 Lack of availability of information & data.

 To maintain company secrecy some information are not mentioned in this report.

5
 Chapter -2
Company Overview

6
2.1 Background of AIBL
Al-Arafah Islami Bank Limited has been established and functioning with effect from
27th September 1995 as a schedules commercial Bank of Bangladesh strictly based on
Islamic Shariah principles.
Islamic Banking has been operating in more than 70 countries of the world including
Bangladesh through 218 institutions. It has in the meantime established its beneficial
approach and efficiency on operation. Islamic Banking system has its inborn inner
strength as follows:

 It gives a fixed percentage of investment income to the depositors. Therefore, in

order to give better rate of profit its investment portfolio is managed properly so
that better investment income can be earned and paid to the depositors.

 The Management cost is to be borne out of a fixed portion of investment income

and service charge earned by the bank. Therefore, efficient customer services and
better portfolio management are required to be ensured by the management.

 The depositors can calculate their interest income to be earned from conventional
banks and thereby make expenditure with consequential inflation which the
depositors of Islamic Bank cannot do as they cannot foresee profit income.

 Since Islami Bank invests its fund in different Islamic Modes of Finance
particularly in Mudaraba and Musharaka and also accepts deposits on Mudaraba
principle, entrepreneurship as well as sense of belongingness to the Bank is
developed.

 In buying & selling modes of financing like Murabaha, Bai-Muajjal, Izara,

enduses is ensured strictly as per principles of Islamic Shariah. Thus funds cannot
be diverted for other purpose.

Islami Bank attaches importance to human resources development. As such the

employees are trained discreetly, in this regard on which the conventional Bank does not
give much importance.

7
2.2 Company Profile:
Name of the Company: Al-ArafahIslami Bank Limited.

Legal Identity: A public limited company registered in

Bangladesh on 18th June 1995, under the
companies Act 1994 and enlisted in Dhaka
Stock Exchange Ltd. & Chittagong Stock
Exchange Ltd
Nature of Business: Commercial Banking based on Al-Quran
& Sunnah

Registered Office: Head Office

Peoples Insurance Building (6th – 9th Floor)

36, Dilkusha Commercial Area

Dhaka-1100, Bangladesh

Banking Software ABABIL

E-Mail: [email protected]

Webpage: www.al-arafahbank.com

Auditors: Hoda Vasi Chowdhury

Chartered Accountant

BMTC Bhaban, Level-8,

7-9, Kawran bazaar, Dhaka-1100

Siful Shamsul Alam

Chartered Accountant
ParamountHeights, Level-6 (Box Culvert
Road)

65, 2/1 Purana Paltan Dhaka-1100

2.3 Vision:
 To be pioneer in Islami Banking in Bangladesh and contribute significantly to the
growth of the national economy.

8
 2.4 Mission:

Achieving the satisfaction of Almighty Allah both here & hereafter.

Proliferation of Shariah Based Banking Practices.

Quality financial services adopting the latest technology.

Fast and efficient customer service

Maintaining high standard of business ethics.

Balanced growth.

Steady & competitive return on shareholders' equity.

Innovative banking at a competitive price

Attract and retain quality human resources.

Extending competitive compensation packages to the employees.

Firm commitment to the growth of national economy.

Involving more in Micro and SME financing.

2.5 Corporate objectives of AIBL:


All the activities of AIBL are conducted on interest-free system according to
Islamic shariah.

Investment activities of AIBL are conducted on interest-free system according to
Islamic shariah

Investment is made through different modes permitted under Islamic shariah.

Investment-income of the bank is shared with the mudaraba depositors according
to a ratio to ensure a reasonably fair rate of return on their deposits.

Its aims are to introduce a welfare-oriented banking system and also to
established equity and justice in the field of all economics activities.

It extends co-operation to the poor, helpless and low-income group of the people
for their economic enlistment particularly in the rural areas.

Its play a vital role in human resource development and employment-generation,
particularly for the unemployed youths.

Its aim is to achieve balanced growth and development of the country through
investment operations. Particularly in the less development areas.

9
 2.6 Special Characteristics:
o All activities are conducted on interest-free system according to Islamic
Shariah Principles.

o Investment is made through different modes as per Islamic Shariah

o Investment Income of the Bank is shared with the Mudaraba depositor
according to an agreed upon ratio ensuring a reasonably fair rate of return
on their deposits

o To introduce a welfare-oriented banking system and also to establish

equity and justice in the field of all economic operations
o Extend socio-economic and financial services to individuals of all
economic backgrounds with strong commitment in rural uplift.

o Plays a vital role in human resources development and employment-

generation particularly among the unemployed youths.

Portfolio of investment and investment policy have been specially tailored to achieve
balanced growth and equitable development through diversified investment operation
particularly in the priority sectors and in the less developed areas of the national
economy.

2.7 Board of Directors

Alhajj Abdus Samad Chairman
Alhajj Abdus Salam Vice-Chairman
Badiur Rahman Director
Alhajj Md. Harun-ar Rashid Director
Alhajj Nazmul Ahasan Khaled Director
Alhajj Abdul Malek Mollah Director
Alhajj Hafez Md. Enayetullah Director
Alhajj Ahamedul Haque Director
Alhajj Abu Naser Moh. Yeahea Director
Engr. Kh. Mesbahuddin Ahmed Director
Alhajj Niaz Ahmed Director
Mohammed Emadur Rahman Director

10
2.8 Management Structure:

Hierarchy of Al-Arafah Islami Bank Limited

1.Chairman

2. Managing Director

3.Deputy Managing Director

4. Executive Vice President

5. Senior Vice President

6. Vice President

7.Assistant Vice President

8. First Assistant Vice President

9. Senior Principle Officer

10. Principle Officer

11. Senior Executive officer

12. Executive officer

13. Officer

14. Assistant Officer

15. Field Assistant Officer

16. Messenger
Fig no: 2.1 Management Structure

Deposit Products
11
Product
Investment
 Online Service

2.9 Products and services

Product of Al-Arafah Islami Bank Limited: AIBL VISA card
& Services

AIBL DEBIT &

CREDIT card

Utility Service

Services
IPO Submission

Marchent Banking

Ria,Aldorado,Mon
eygram,western
union Money
transfer

Foreign
Remittance

Fig no: 2.2 Products and services of Al-Arafah Islami Bank Ltd..

2.10 Different Departments of Al-Arafah Islami Bank Limited:

General Foreign
Investment Accounts Cash
banking Exchange
12
 Branch
Departments

Fig no 2.3 Different Departments of Al-Arafah Islami Bank Ltd.

2.11 Head office of Al-Arafah Islami Bank Ltd.

Head office
Departments

General
Fig ForeignIslami Bank Ltd.
no: 2.4 Head office of Al-Arafah
General Public
Investment Accounts Cash HR
banking
2.12 Exchange
Shariah Supervision: relation & IT
Shariah Council of the Bank is playing a vital role in guiding and supervising the
implementation and compliance of Islamic Shariah principles in all activities of the Bank
since its very inception. The Council, which enjoys a high status in the structure of the
Bank, consists of prominent ulema, reputed banker, renowned lawyer and eminent
economist. Members of the Shariah Council meet frequently and deliberate on different
issues confronting the Bank on Shariah matters. They also conduct Shariah inspection of
branches regularly so as to-ensure that the Shariah principles are implemented and
complied with meticulously by the branches

2.13 Financial Management:

The Bank earned operating profit of Tk. 6,360.15 million during the year 2015 as against
Tk. 4,948.56 million during the year 2014 representing an increase by Tk. 1411.59
million and thus the Bank attained growth of 21.35% in respect of operating profit. The
total assets of the Bank stood at Tk. 229106.66 million recording an increase by Tk.

13
23,841.27 while Equity of the Bank increased from Tk. 14,050.69 million to Tk.
16,091.17 million with 14.52% growth and 14.66% Capital Adequacy Ratio (CAR).

2.14 Deposits

The total deposit of the Bank mounted to Tk.169, 887.08 million as on 31st December
2015 as against Tk. 166,851.17 on 31st December 2014 a growth of 1.82% amounting to
Tk.3, 035.91 million. Our present strategy is to mobilize the deposit base from the mass
people through competitive profit rates with special attention to low and no cost deposit
to keep the Bank risk free with better spread.

2.15 Investment:

The investment of the Bank stood at Tk.162, 503.14 million as on 31st December 2015
as against Tk. 146, 740.36 million in the previous year showing an increase by 15,164.07
recording growth 10.74%. The investment portfolio of the Bank is well diversified and
covers a broad spectrum of businesses and industries including readymade garments,
textile, edible oil, ship scraping, steel & engineering, chemicals, pharmaceuticals,
cement, telecommunication, construction, health care, real estate, education, transport
and investment under consumer schemes. We have geared up efforts to improve the
quality of our investment and thus it is our success to keep the classified investment at
4.66% which is below the national average.

2.16 Green Financing & Green Banking:

Eco friendly business activities and energy efficient industries are given preference.
Being an ethical Bank and in compliance to Bangladesh Bank guidelines AIBL has
formed Green Banking Unit, headed by a senior executive and supervised by Board
Audit Committee.

2.17 Environment Risk Management (ERM):

Environmental Risk Rating is done on the relevant proposal under Environment Risk
Management Guideline.

2.18 Information of Mirpur Circle-1 Branch:

14
 Particular Information

Date of Incorporation 01.02.1997

General Banking, Investment, Cash &
No. of Division (At Inauguration Time) Foreign exchange Department.
Period of 1st Investment 01.04.1997

No. of Division at Now Four Division

21
No. of Employee at Now
BDT. 142,72,05,392.34
Total Deposit at Now
Total Investment at Now BDT. 53,20,46,866.00

Total Profit BDT. 4,67,27,496.24

Apan Angina, Mirpur City Center, 3/4
Situated at Darus-Salam Road, Mirpur 1, Dhaka 1216

Table no: 2.3 Information of Mirpur-1 Branch

15
 Chapter -3
Theoretical Aspects

3.1 Human Resource Management:

Human Resource Management is the part of the organization that is concerned with the
‘people’ dimension. Human Resource Management deals with the people working in the

16
organization.  It is a process of acquisition, development, motivation, and maintenance of
human resources of an organization.

3.2 Definition of Human Resource Management:

Human Resource Management is a management is the process of using human resources

effective & efficiently to accomplish organizational goal.

Many authors and specialists define HRM in many ways:

Dale Yoder has defined; Human Resource Management is the provision of leadership
and direction of people in their working or employment relationship.

Ricky W. Griffin has defined; Human Resource Management is the set of organizational
activities directed at attracting, developing and maintaining an effective work force.
3.3 Function of Human Resource Management:

Human Resource Management has many functions. But it has some basic functions.
These functions are given here:

 Acquisition

 Training & development.

 Motivation.

 Maintenance.

These functions are described here briefly:

 Acquisition: It deals with human resource planning. It includes

i) Job Analysis

ii) HRP

iii) Recruitment

17
 iv) selection

 Training and Development: Training changes employee’s attitudes and

behavior. Development up to data skills, knowledge, and abilities. It includes
employee-training, education, career development.

 Motivations: Motivations is the process that account for an individual’s

intensity, direction and persistence to effort toward attaining a goal.

 Maintenance: Maintenance refers to maintaining employee commitments

and loyalty to the organization. It is willingness to stay in the company.

3.4 Recruitment:

Recruitment is the process of searching for prospective employees and stimulating them
to apply for the jobs in the organization.

According to David A. DeCenzo and Stephen P. Robbins, “Recruitment is the process

of discovering potential candidates for actual and anticipated organizational vacancies.”

Edwin B. Flippo has defined, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in the organization.”

From the above definition we can say that, Recruitment is the process of finding and
attraction capable applicants for employment. The process begins when new recruit are
sought and ends when their application are submitted. The result is a pool of applicants
which new employees are selected. The quality of an organization’s human resources
depends on the quality of its recruit

3.5 Sources Recruitment:

There are two source of recruitment those are
1. Internal Recruitment
2. External Recruitment

Vacancies in upper level management can be filled either by hiring people from outside
the organization or by promoting lower level managers.

18
3.5.1Internal Sources

Internal recruitment seeks applicants for positions from within the company. The Internal sources
of recruitment refer to hiring employees within the organization through –

 Promotions: Promotions refer to shifting of persons to positions carrying better prestige,

higher responsibilities and more pay. The higher positions falling vacant may be filled up
from within the organization. A promotion does not increase the number of persons in
the organization. A person going to get a higher position will vacate his present position.
Promotion will motivate employees to improve their performance so that they can also
get promotion.
 Transfers: Transfer involves shifting of persons from present jobs to other similar jobs.
These do not involve any change in rank, responsibility or prestige. The numbers of
persons do not increase with transfers.

 Internal advertisement: Sometimes, management issues an internal notification for the

benefit of existing employees. Most employees know from their own experience about
the requirement of the job and what sort of person the company is looking for. Often
employees have friends or acquaintances who meet these requirements. Suitable persons
are appointed at the vacant posts.
 Retirements: At times, management may not find suitable candidates in place of the one
who had retired, after meritorious service. Under the circumstances, management may
decide to call retired managers with new extension.
 Recalls from long leave: When management faces a problem, which can be solved only
by a manager who has proceeded on long leave, it may de decided to recall that persons
after the problem is solved, his leave may be extended.

Promotions
Transfers Transfers

Internal Retirements: 
advertisement

19
 Recalls from long leave

3.5.2External Sources
External recruitment seeks applicants for positions from sources outside the company. They have
outnumbered the internal methods. The various external sources include:

 Advertisements: It is a popular method of seeking recruits, as many recruiters prefer

advertisements because of their wide reach. Want ads describe the job benefits, identify
the employer and tell those interested how to apply. Newspaper is the most common
medium but for highly specialized recruits, advertisements may be placed in professional
or business journals. Advertisements must contain proper information like the job
content, working conditions, location of job, compensation including fringe benefits, job
specifications, growth aspects, etc.

 Employee referrals: Employees can develop good prospects for their families and
friends by acquainting them with the advantages of a job with the company, furnishing
them with introduction and encouraging them to apply. This is a very effective means as
many qualified people can be reached at a very low cost to the company. The other
advantages are that the employees would bring only those referrals that they feel would
be able to fit in the organization based on their own experience.

 Public employment agencies: Most public agencies tend to attract and list individuals
who are unskilled or have had minimum training this, of course, does not reflect on the
agency’s competence. Rather, it reflects the image of public agencies. Such agencies are
perceived by prospective applicants as having few high skilled jobs, and employers also
tend to see such agencies as having few high skilled applicants.

 Private Employment Agencies: How does a private agency, which has to charge for its
services, compete with state agencies that give their services almost free? Clearly, they
must do something different from what the public agencies do, or at least give that
impressing.

 Campus Recruitment: Colleges, universities, research laboratories, sports fields and

institutes are fertile ground for recruiters, particularly the institutes. In fact, in some
companies, recruiters are bound to recruit a given number of candidates from prestigious

20
 institutes every year. The IIMs are an important source for recruiting management
trainees.

 Write-ins and Talk-ins: Walk ins are job seeker who arrive at HR department in search
of a job .Both groups normally are asked to complete an application blank to determine
their interests and abilities.

 Head Hunters: They are useful in specialized and skilled candidate working in a

particular company. An agent is sent to represent the recruiting company and offer is
made to the candidate. This is a useful source when both the companies involved are in
the same field, and the employee is reluctant to take the offer since he fears, that his
company is testing his loyalty.

3.6 Factors affecting recruitment:

3.6.1 External Factors:

The external forces are the which cannot be controlled by the organization . the major
external forces are :

Supply and demand :

The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply for the professionals demanded by the company,

21
then the company will have to depend upon internal sources by providing them special
training and development programs.

Labor market:

Employment conditions in the community where the organization is located will

influence the recruiting efforts of the organization. If there is surplus of manpower at the
time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc will attract more than
enough applicants.

Image / Goodwill: Image of the employer can work as a potential constraint for
recruitment. An organization with positive image and goodwill as an employer finds it
easier to attract and retain employees than an organization with negative image. Image of a
company is based on what organization does and affected by industry.

Political-social- Legal Environment:

Various government regulations prohibiting discrimination in hiring and employment

have direct impact on recruitment practices. For example, Government of India has
introduced legislation for reservation in employment for scheduled castes, scheduled
tribes, physically handicapped etc.

Unemployment Rate:

One of the factors that influence the availability of applicants is the growth of the
economy (whether economy is growing or not and its rate). When the company is not
creating new jobs, there is often oversupply of qualified labor which in turn leads to
unemployment.

Competitors:

The recruitment policies of the competitors also affect the recruitment function of the
organizations. To face the competition, many a times the organizations have to change
their recruitment policies according to the policies being followed by the competitors.

3.6.2 Internal Factors :

The internal mechanism of the organization, some of internal factors that affect
recruitment are as follows:

22
Human Resource planning: Effective human resource planning helps in
determining the number of employees to be recruited and what qualification they must
possess.

Size of firm: The size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operation and expand its business, it will think of
hiring more personal, which will handle its operation.

Cost: Recruitment incur cost of employer, therefore, organization try to employ that
source of recruitment which will bear a lower cost of recruitment to the organization for
each candidate.

3.7 Recruitment Process:

A recruitment process is an organization specific model of how the sourcing of new

employees is undertaken. Typically the ownership of the recruitment process resides
within the human resources function ,although again this may differ depending on the
specific organizational structure.

A recruitment process can be broken down into respective parts. Whilst the naming and
the exact process steps are unique to an organization, a typical recruiting process may
commence with the identification of a vacancy ,then the preparation of an job
description, database sourcing, role marketing, response management ,short listing,
interviewers, reference checking and selection.

The recruitment process is given below:

Human Resource Planning

Job Analysis

Nature of Job

Filling the Job

Recruitment

23
 Pool of qualified application

Selection

3.8 Selection

The Selection is the process of choosing the most suitable candidate for the vacant
position in the organization. In other words, selection means weeding out unsuitable
applicants and selecting those individuals with pre-requisite qualifications and
capabilities to fill the jobs in the organization.

3.9 The Selection Process:

There are two types of selection process.

 General Selection Process

 Basic Selection Process

3.9.1General Selection Process:

Selection (By interview and or by tests)

Offer and Acceptance (A Contract of

employment given to the successful
candidates)

Induction

24
3.9.2Basic Selection Process:

Selection activities typically follow standard pattern, beginning with an initial screening,
interview and concluding with the final employment decisions. When a candidate has
successfully completed his External Environment various steps
including reference, he has Internal Environment been considered
as have provisionally Reception of Applicant selected for
which the selection process Preliminary interview has been
initiated. Employment Tests
Reference and Background
Analysis
Selection Decision
R Medical/ Physical Examination
Job Offer
E Employment Contract

25
3.10 Difference between Recruitment and Selection

BASIS FOR
RECRUITMENT SELECTION
COMPARISON

Meaning It is an activity of establishing contract It is a process of picking up more

between employees and applicants. competent and suitable
employees.

Approach It is a positive It is a negative

Objective It encourages large number of It attempts at rejecting unsuitable

candidates for a job. candidates.

Sequence It precedes selection. It follows recruitment

Process It is a simple process It is a complicated process.

Economy It is an economical method It is an expensive method

Time Consuming Less time is required More time is required

26
 Chapter 04
Recruitment & Selection
Process of Al-Arafah Islami
Bank Limited.

27
4.1 Introduction:

Recruitment is the process of finding and attraction capable applicants for employment.
Al-Arafah Islami Bank Limited always wants to recruit the right people with
combination of skill and resources in the right place. Because Al-Arafah Islami Bank
Limited believes that in order to achieve the organizational goal effectively there must be
need of skill resource. Al-Arafah Islami Bank Limited always believes in equal
employment color, region, race, age, gender, national origin or any other factor. The
company always wants to recruit has best and suitable human resource in the vacant
position. The person who can face the global challenge and always concentrate to
achieve the company’s vision, mission and goals always get preference.

4.2 Recruitment sources of Al-Arafah Islami Bank Limiled:

Al-Arafah Islami Bank Limited usually two type of recruitment sources. They are:
Internal Sources and External sources.

4.2.1Internal recruitment sources

Usually, a recruiter will not help client source candidates internally. Hiring authorities
can use the following internal recruiting methods to find a candidate within a business.

Promotion & Transfer

To fill a higher-level position, hiring managers could promote an existing employee.
Since hiring managers already work with the employee, they know the worker’s

28
capabilities. Transfer involves shifting of persons from present jobs to other similar jobs.
These do not involve any change in rank, responsibility or prestige.

Employee referrals: Employees can develop good prospects for their families and
friends by acquainting them with the advantages of a job with the company, furnishing
them with introduction and encouraging them to apply. This is a very effective means as
many qualified people can be reached at a very low cost to the company.

4.2.2External recruitment sources

Recruiters can use external recruitment source to find candidates for their clients. There
are several sourcing strategies in recruitment for finding candidates outside of your
client’s company. The following are common external sources of recruitment.

Website
Include job openings on your recruiting website. Your clients can also advertise jobs on
their websites. The more you advertise a position, the larger your candidate pool
becomes. Increasing the number of interested candidates helps you find a good match for
your client. For example www.bdjobs.com

Advertisements in Newspaper
 It is a popular method of seeking recruits, as many recruiters prefer advertisements
because of their wide reach. Want ads describe the job benefits, identify the employer
and tell those interested how to apply. Newspaper is the most common medium but for
highly specialized recruits, advertisements may be placed in professional or business
journals.

29
4.3 Recruitment process of Al-Arafah Islami Bank Limited:

Finding out the vacancy

Requisition of Manpower

Advertisement in Newspaper & Websites

Receiving application and short listing

Finding out the vacancy:

Before recruitment, organization needs to find out its vacant position. AIBL has
different departments. If any department want to recruit in their department. At first
departmental head finds out the vacant position. If there is vacant position, then
departmental head go to next step.

Requisition of Manpower
The concerned departmental head raise the requisition of manpower through the
prescribed manpower requisition from with required information and after that forward it
to the human resource department. The Human resource department completes its
formality and returns it to the concern department. Last of all the concern department
submits the manpower requisition to the managing director of AIBL for approval.

Advertisement in newspaper & Websites

AIBL always circulates the job vacancies by publishing advertisement in national
newspaper. The Newspaper that widely circulated get preference for accomplishing this

30
task for circulating that publishing widely and effectively. AIBL chooses both bangle &
English dailies. The advertisement includes name of the position, nature of work , age
limits, education qualification, qualities and experience required for the job, job
responsibilities and duties, expected salary, place of the job etc.

Receiving application and short listing

In advertisement, potential and confident applicants are asked to submit their application
along with their resume, certificates and other documents. Then the HR department of
AIBL receives all the resumes submit by applicant

4.4 The Selection process of Al-Arafah Islami Bank Limited:

Selection is a process of choosing right person for the right job. The selection process
consists of a series of steps or techniques as follows: 

Application

Employment Testing

Selection Interview

Reference and Background Analysis

Medical/Physical Check up

The Final Hiring Decision

Application:
Applications that are collected are sorted according to the recruitment criteria and the others are
rejected that doesn’t fulfill the required criteria.
Employment Tests:

31
Employment tests are varies from job to job. Such as-for Customer Service Officer
Recruitment the physical appearance or smartness get preference where for HR executive
recruitment managing power gets priority. Various tests are conducted to judge the
ability and efficiency of the candidates. The type of tests depends upon the nature of job.
An important advantage of testing is that it can be administered to a large group of
candidates at a time and saves time and cost.

The various tests are:

(a) Personality test,

(b) Intelligence test,  

(c) Performance test,

(d) Stress test

Selection interview:

Al-Arafah Islami Bank Limited selection interview is a formal, in-depth conversation

conducted to evaluate an applicant’s acceptability. The Management of Ai-Arafah Islami
Bank Limited seeks to answers three broad questions. Can the applicants do the job?
Will the applicants do the job? Selection interviews are the most widely used selection
technique. The popularity stems from their flexibility. They can be adapted to unskilled,
skilled, managerial, and staff employees. They also allow a two-way exchange of
information. Interviewers learn about the applicant and the applicant learns about the
employer.

Reference and Background Checking:

As part of assessing the merit of each candidate, HRM must satisfy them that the information the
candidates give is authentic, consistent and honest. All sorts of certificate are to be checked
by the HR service manager in this stage. At least two references are needed in order to
verify applicants. After verification the reference and certificates the next in being.

Medical/ Physical Examination:

Medical examination of the candidates is undertaken before they join the firm in order to
-

32
 Find out whether the candidate is physically fit to carry out duties and responsibilities
effectively.
 Ensure the health and safety of other employees.
 Find out whether the candidate is sensitive to certain work place such as in a
chemical factory.

The Final Hiring Decision:

Regardless of whether the supervisor or the HR department makes the final hiring
decision, hiring makes the end of the selection process, assuming that the candidate
accepts the job offer to maintain good public relations. Al-Arafah Islami Bank Limited
management notifies applicants who are not selected.

33
 Chapter-05
Questionnaire Survey

34
5.1 Questionnaire Analysis:

1. Are you satisfied with the whole Recruitment and Selection process of AIBL?
Comments of Respondent Number of Respondent Percentages
Strongly Agree 2 20%
Agree 6 60%
Neutral 1 10%
Disagree 1 10%
Strongly disagree 0 00%

10%
20%

10%

6
60%

Strongly satisfied Satisfied Neutral

Dissatisfied Strongly dissatisfied

Explanation: In this graph it is seen that 60% employees are agreed with the recruitment
& selection process 20% of them strongly agree and 10% of employees are they have no
effect about this. Other 10% of employee is disagreed by considering the recruitment&
selection process.

2 Appropriate tools and techniques are used for selecting employees in AIBL

35
 Comments of Respondent Number of Respondent Percentages
Strongly Agree 1 10%
Agree 3 30%
Neutral 4 40%
Strongly Disagree 0 00%
Disagree 2 20%

10%
20%

3
30%

40%

Strongly Agree Agree Neutral Strongly Disagree Disagree

Interpretation: According to the graph, that the question about whether Appropriate
tools and techniques are used for selecting employees in AIBL or not, 10% respondent
strongly agree, and 30% are agreed where 40% were neutral position.

3. Recruitment and Selection process of AIBL is not lengthy at all

36
Comments of Respondent Number of Respondent Percentages
Strongly Agree 0 00%
Agree 2 15%
Neutral 3 30%
Disagree 3 30%
Strongly Disagree 2 25%

11%
22%

22%

44%

Strongly Agree Agree Neutral Disagree Strongly disagree

Interpretation: In this graph, the above figure shows that 15% agree, 30% Neutral and
30% disagreed and 25% strongly disagreed, about AIBL recruitment process is lengthy
about the statement.

4. Recruitment and Selection process of the bank is cost effective

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 Comments of Number of Respondent Percentages
Respondent 20%
Strongly Agree 3 30%
30%
Agree 5 50%
Neutral 2 20%
Disagree 0 0%
Strongly Disagree 0 0%

50%

Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: In this graph, the above figure shows that 50% agree, 20% Neutral and
30% strongly agreed, about AIBL recruitment and selection process is cost effective.

5. The recruitment and selection process of AIBL is free from biasness

Comments of Respondent Number of Respondent Percentages

Strongly agree 0 0%
Agree 3 30%
Neutral 5 50%
Disagree 2 20%
Strongly disagree 0 00%

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 20%

30%

50%

Strongly agree Agree Neutral Disagree Strongly agree

Explanation: From the above figure it is seen that in AIBL 30% employees agreed and
50% employees were neutral but 20% employees disagreed about the statement.

39
6. Employees are selected according to the job description and job specification.

Comments of Respondent Number of Respondent Percentages

Strongly agree 5 50%
Agree 4 40%
Neutral 1 10%
Disagree 0 00%
Strongly disagree 0 00%

Strongly agree Agree Neutral Disagree Stongly disagree

10%

50%

40%

Explanation: From the above figure it is seen that in AIBL 50% employees strongly
agreed and 40% agreed were agreed with this statement and 10% respondent were at
neutral position where no one disagreed and strongly disagreed with this statement. So
we can say that the employees are selected according to the job description and job
specification

40
7. AIBL follows the formal recruitment system.

Comments of Respondent Number of Respondent Percentages

Strongly agree 5 50%
Agree 4 40%
Neutral 1 10%
Disagree 0 0%
Strongly disagree 0 0%

10%

50%

40%

Strongly agree Agree Neutral Disagree Stongly disagree

Explanation: From the above figure it is seen that in AIBL 50% employees strongly
agreed and 40% agreed that AIBL properly follows the formal recruitment system

41
8. Media for attracting candidate are suitable
Comments of Respondent Number of Respondent Percentages
Strongly agree 4 40%
Agree 3 30%
Neutral 3 30%
Disagree 0 0%
Strongly disagree 0 0%

30%

40%

30%

Strongly agree Agree Neutral Disagree Stongly disagree

Explanation: From the above figure it is seen that in AIBL 40% employees strongly
agreed, 20% agreed and 10% neutral that AIBL properly follows the formal recruitment
system but 300% employees disagreed about the statement.

42
9. Recruitment and Selection process achieve the organization’s goal and objective.

Comments of Respondent Number of Respondent Percentages

Strongly Agree 5 50%
Agree 5 50%
Strongly Disagree 0 0%
Disagree 0 0%
Neutral 0 0%

50% 50%

Strongly agree Agree Strongly Disagree Disagree Neutral

Interpretation: According to the graph, that the question about whether AIBL
recruitment and selection process achieves the organization’s goal and objective or not,
50% respond are strongly and 50% are agreed.

As AIBL follows formal mode of recruitment system, so it is easy for the bank to
achieve organizational goal effectively and efficiently

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 Chapter-06
Findings,
Recommendations &
Conclusion

44
6.1 Major Finding:
The major findings in the recruitment and selection procedure of Al-Arafah Islami Bank Limited
that are justified in my view are:

1. The employees of AIBL ltd. are satisfied with the recruitment and selection process.

2. Most of the employees were in neutral position regarding tools and techniques of recruitment
and selection.

3. The recruitment and selection process of Al-Arafah Islami Bank Limited is lengthy.

4. The recruitment and selection process of Al-Arafah Islami Bank Limited is cost effective.

5. The recruitment and selection process of Al-Arafah Islami Bank Limited is not totally free
from biasness.

6. Employees are selected according to the job description and job specification.

7. Al-Arafah Islami Bank Limited follows the formal recruitment system.

8. Al-Arafah Islami Bank Limited follows suitable media for attracting candidate.

9. Recruitment and selection process of AIBL aims to satisfy organizational goals and objective.

45
6.2 Recommendations:

The major Finding from the analysis of recruitment and selection process of AIBL
requires the following recommendations that may help the AIBL to improve its
recruitment and selection process and to be key member in the banking sector
Bangladesh.

 Al-Arafah Islami Bank Limited recruitment process is lengthy, so the bank

should take some steps to shorten the process of the bank.
 Most of the employees said that AIBL should improve the process of recruitment
and selection.

46
6.3 Conclusion:
Banking sector is the chief financial intermediary. It is very challenging instate and in
age of globalization and free trade, the process and the system of running a bank is
changing.AIBL already managed itself with this changing environment. The bank
strategies are clear concise. Their return is pretty good. If the goes this way. One can
except that in near future Al-Arafah Islami Bank become one of the top performers.

AIBL is a commercial bank in Bangladesh, which establish18 June 1995.In order to have
an insight into how effective it is doing its recruitment and selection process, this study is
conducted. The study reveal that AIBL always keep in mind by adopting a strategic
approach of for recruitment and selection process to choose the best one who will give
the best service to AIBL’s customers. Human resource department and an important
function of his HR department is recruitment and selection process. From my internship
program I have try to my best to provide maximum information about recruitment and
selection process AIBL.

From the discussion it can be concluded that Al-Arahaf Islami Bank playing an
important role in the economies development of country and it has a prospect to hold a
leading position in the banking sector. It should increase promotional activities to reach
to the people easily and it should perform its recruitment and selection process in most
effecting manner. There by it can play a leading role in the banking sector in Bangladesh.

47
Bibliography:

Text Books:

1. Fundamentals of Human Resource Management, David A. Decenzo & Stephen p.

Robbins, 08th Edition

2. Human Resource Management, Gary Dessler 07th Edition.

3. Human Resource Management, David A. Decenzo & Stephen p. Robbins 07th Edition

4. Managing Human Resource, Casco W. F.

5. Bank Book of Instructions.

Annual Reports:
AIBL Annual Report of 20115

Web sites:

1. www.alarafahbank.com
2. www.google.com
3. www.wikipidia.com

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 APPENDIX

Questionnaire
Questionnaire

Dear Respondents,
I am Murad Hasan student of BBA program in Bangladesh University of Business and
Technology (BUBT). For the potential fulfillment of the BBA program. I have to prepare
a report on “Recruitment and selection process of AIBL”. So that some information
would be needed from you. It is assured that all the information will keep confidential
and safely use in this report only.

Please read carefully the question and put a tick (√) in the respective number and kindly
give your response where necessary.

Section-1: General information about Respondent:

 Name……………………………………………….
 Contact No………………………………………….

 Gender a. Male b. Female

 Age (In years): ……………………………………………………………….
 Marital status: a. Single b. Married
 Religion: a. Muslim b. Hindu c. Christian d.
Buddhist e. Other
 Education level
a. Graduation b. Post Graduation
 Name of your Institution……………………………………………
 Position…………………………………………………………

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Section-2 Question related With Recruitment and selection issue:

1. Are you satisfied with the whole Recruitment and Selection process of AIBL?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly disagree

2 Appropriate tools and techniques are used for selecting employees in AIBL
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly disagree

3. Recruitment and Selection process of AIBL is not lengthy at all

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

4. Recruitment and Selection process of the bank is cost effective

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

5. The recruitment and selection process of AIBL is free from biasness

 Strongly agree
 Agree
 Neutral
 Disagree

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  Strongly disagree

6. Employees are selected according to the job description and job specification.
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

7. AIBL follows the formal recruitment system.

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
8. Media for attracting candidate are suitable
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

9. Recruitment and Selection process achieve the organization’s goal and objective.

 Strongly Satisfied
 Satisfied
 Neutral
 Dissatisfied
 Strongly Dissatisfied

51