Towsif Ur Rahid Makin Rishalat Jitu State Bank of Pakistan renamed as Bangladesh Bank Permitted foreign banks to continue operation
Nationalizing local banks
License for private banks Aggressive investments of Local companies Growth in GDP Number of private banks went up 4 state owned banks, 5 specialized banks, 31 local private commercial banks and 7 Islamic Commercial Banks and 9 foreign commercial banks operating now Popularity rising around the world Extraordinary growth and expansion Islamic Banking Services from Conventional banks Establishment of a group comprising representatives of central Bank, Islamic Banks and also the Central Sharia Board for Islamic Banks of Bangladesh Islami Bank Shahjalal Islami Bank Exim Bank First Security Islami Bank Al-Arafah Islami Bank ICB Islamic Bank Social Islami Bank Established as a private limited company on 1995 Follows the Islamic Sharia law strictly Sharia based profit/loss system to get rid of the usury Inauguration took place on 27 September 1995 AIBLs authorized capital is BDT5000 million and its paid up capital is 4677.28 million as of 2010 Number of employees: 2500-3000 Short-term deposits: One months MTDR (Mudaraba Term Deposit), three months MTDR, Six months MTDR, one year to three years MTDR Mudaraba Monthly Saving Scheme, consists of different amounts with different time periods Mudaraba Hajj scheme for hajjis Murabaha Bai-Muazzal Brokerage house, Green Banking Chairman Managing Director Board of Directors Additional Managing Director Deputy Managing Director Executive Vice President Senior Assistant Vice President Assistant Vice President Assistant Officer Junior Officer Management Trainee Officer Executive Officer Trainee Officer External Recruitment Corporate Web-site Newspaper Job Web-site Interns (Less frequently used) Internal Recruitment Promotions & Transfers Job Posting Employee Referrals
Objectives Enhancing the capacity of the employee Building an effective, accountable committed employee Equipping Human Resources with requisite skills and techniques Trainees Management Trainee Officers Executive Officers Branch Managers Officers of different grades Training institutions AL-Arafah Islami Bank Training & Research Academy (AIBTRA) Bangladesh Institute of Bank Management (BIBM) Bangladesh Bank Training Academy Programs Training courses Workshops Executive workshops Executive Development Program (EDP) Outreach workshops IT training (ICT lab)
Total Training programs during 2013 : 79 Total Trainees: 2861 Annual Performance Appraisal Very strict Promotion and salary decisions Key considerations Annual Performance Report (APR) Educational qualification Training received Figure: Annual Performance Report Compensation Basic salary Allowances Housing (50% of Basic ) Medical, transportation Bonuses 2 festival bonuses Incentive bonuses Based on profit 8 people last year Salary increment For everyone Exception : negative APR Leave Casual leave (15 days) Earned leave (33 days) Mandatory leave with one basic (15 days ) 6 months of maternity leave with pay Recruitment from 2009 Equal opportunity for women To maintain decency and discipline Female dress code To provide comfortable environment Minimum of two female employees at a branch To remove monotony Full implementation of the mandatory leave No personal relationships and references bias No employee bias Open door policy Mandatory transfer of employees every three years (success rate 60%) Employment for the family members of a deceased employee 6 months maternity leave (with full pay) Exit interview Only people from Islamic background are recruited Female dress code No single women can be appointed in one branch Mandatory leave Very strict annual performance appraisal Training and skills development Ease of access Employee retention Transfer of employees At AIBL its mandatory to transfer employees after every 3 years. This policy has 60% success rate. it creates a big problem as for the branch managers and employees.
Year Turnover rate 2007 4.1 2008 2.1 2009 1.09 2010 0.95 2011 0.48 2012 0.09 2013 0.04 Recruitment through BIBM
Employee turnover rate
Employment support after death Budget planning Diversification of HR department form Head Office Recruitment and selection team
Al Arafah Islami Bank Limited (AIBL) follows some unique recruitment and HRM policies. The analysis of AIBL under HRD revealed that people are most valuable resources for the progress of the organization. AIBL make use of its most important resource by developing and satisfying every need of the employees. And the effective use of the human resource makes the organization to achieve up to its expectations and desired goals.
The Six Principles of Service Excellence: A Proven Strategy for Driving World-Class Employee Performance and Elevating the Customer Experience from Average to Extraordinary