This document discusses the human resource management practices of Al-Arafah Islami Bank Limited in Bangladesh. It outlines the objectives of studying the bank's training and development process, performance management system, recruitment and selection process, and employee benefits. The bank provides training courses and workshops for employees and assesses performance through appraisals. It recruits through both internal and external sources and offers competitive salaries, bonuses, allowances and retirement benefits. The document recommends emphasizing qualifications in hiring, ongoing training programs, allocating more resources to human resources, and empowering the HR department.

1. HUMAN RESOURCE MANAGEMENT
PRACTICES OF Al-Arafah Islami Bank Limited.
Supervised by: Presented by:
Mr. Mahbub Parvez Md. Mehadi Rahman
Associate Professor ID: 133-14-1220
Faculty of Business and Economics Program: MBA
Daffodil International University. (Major in Human Resource
Management)
Faculty of Business & Economics
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2. Introduction
 Human Resource Management is responsible for the main
dimension of people of the organization. It is responsible for hiring
competent people, training them, helping them perform at high
levels and mechanisms to ensure that these employees maintain
their productive affiliation with the organization.
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3. Objectives of the Study:
 To identify the training and development process of AIBL.
 To analyze the performance management system of AIBL.
 To know about the recruitment and selection process of AIBL.
 To find out the employee benefit and facility provided by AIBL.
 To make some recommendations to overcome the problems that is
identified.
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4. Human Resource Management Practices of Al-
Arafah Islami Bank Limited
 Human Resources Department of AIBL Bank Limited is solely
responsible mainly for recruitment, training and development,
ensuring compensation and benefits of staffs, performance
appraisals and rewards. With all those core functions Human
Resources Department linkage its operations meet the organization’s
objectives.
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5. Human Resources Division
 The vision of Human Resource Division is to “Ensure improved
business performance and competitive advantage by attracting,
developing and retaining people in a winning culture that builds
organizational capabilities to meet strategic objectives”. Human
Resource Management plays a great role in every organization. So it
is an integral part of AIBL. AIBL has specific HR division. They
follow HR practices like Recruitment, Selection, and performance
appraisal.
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6. Training& Development of AIBL:
 The Bank gives utmost importance for making continuous investment in
Research and Development (R&D) and Training to achieve operational
efficiency in the competitive global banking scenario. The Bank’s human
resource policy is to recruit and build up quality manpower having skill
and professional expertise. In implementation of the human resource
development strategy, the Bank established its own Training Institute at
the Head Office with the vision to build up professionals with technical,
human and conceptual skills.
 The Al-Arafah Islami Bank Ltd. Training Institute arranged a total of 19
training courses, workshops, seminars, and induction programs with
514 participants. The objectives of designing all training programs are to
bridge the gap between present level of competence and the required level
of competence.
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7. Training& Development of AIBL:
Serial No. Subject
1. Training Courses a. Foundation Training
b. Islamic Banking Operation
c. Credit Operation and Management
d. International Trade and Finance
e. Audit and Inspection
f. Customer Services
g. Banking Law and Practices
h. Information Technology
i. Managing Core Risk
2.Workshops/Seminars/Induction
Program
a. Credit Risk Grading
b. Documentation/Legal aspects in loan
sanction and disbursement
c. Prevention of Money Laundering
d. Standard Operating Procedure
e. Basel II Capital Accord
f. Credit Card Operation
g. Retail Banking
h. Relationship Banking
i. Foreign remittance-rules and procedures
j. Induction Program
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8. Performance Appraisal:  Employees of Al-Arafah Islami Bank
Limited get a competitive salary with a wide
range of fringe benefits. In order to sustain
the employee’s performance on the job
employers of the organization provide
different facilities of modern life- house rent
allowances, medical allowance, transport
allowance and house utility bills. The Bank
also gives various festive bonuses as well as
other bonuses like performance bonus,
security bonus etc. Employees also get the
facilities of provident fund, gratuity and
annuity. Appraisal in this Banks always
provides according to the employee’s
respective performances other than any
prejudice.
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9. Recruitment and Selection
Process of Al-Arafah Islami Bank
Limited:
 AIBL provides equal employment
opportunity for all Bangladeshi citizens.
It is the policy of the Company to attract,
retain and motivate qualified and skilled
employees within the company. To do
this, the Company offers competitive
compensation package and provides
equal opportunity for career development
to all employees. It is believed that in
order to achieve the Company’s goal,
there must be efficient and high caliber
human resources. Therefore, the
company pays maximum attention and
efforts in recruiting highly qualified and
competent employees who are willing to
face challenges in achieving Company’s
goal.
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10. Recruitment and Selection Flowchart:10

11. Guiding Principles of Recruitment &
Selection Process
 Fairness.
 Right person at the right job.
 Efficient and effective.
 Realistic Planning.
 Standard Method.
 Development Focus.
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12. Recruitment Source:
Recruitment Source
External
Recruitment
Career
Fair
Web Search Internal
Recruitment
Advertisement
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13. Pay Policies of Al-Arafah Islami Bank Ltd.:
 Provident Fund:
There is a fund called “AL-Arafah Islami Bank Limited Employee’s
Provident Fund” which is governed by a separate Provident Fund
Rules approved by the Board. All permanent employees
compulsorily are the member of Provident Fund.
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14. Pay Policies of Al-Arafah Islami Bank Ltd.:
 Gratuity:
Every confirmed and full time employee who has rendered seven years
continuous service in the Bank or more, a gratuity equal to one
month basic salary for each completed year of service may be
granted to him on retirement/resignation/termination or to his family
in the event of his death while in service. The dismissed employee is
not entitled to any gratuity. Various attractive retirement benefits are
in place.
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15. Performance Bonuses and Other Bonuses:
 Allowances:
Employees get house rent allowance, conveyance allowance, medical
allowance, dearness allowance, entertainment allowance etc.
 Medical Facilities and Health Insurance:
Doctors of selected recognized hospitals time to time checkup employees.
Officers of the Bank enjoy health insurance policy for himself. The Bank
pays the premium. Again, before starting their job as a Probationer Officer
they should be certified from the bank’s recognized medical center as he
fit for successful performance. Staff welfare fund has been created
for securing the employees from accidental loss.
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16. Findings:
 In AIBL there were a good number of professional and qualified human
resources. On an average, 75% of staffs were professionals, 18% were semi-
professionals and the remaining 7% percent were non-professionals. Among the
professionals most of them were MBA or BBA holders.
 There was a great shortage of ICT-literate manpower in the bank. Only 4% staff
had professional IT background with short term certificate course(s), while 70%
had minimum knowledge on IT, and the rest of the staff 26% had no IT
knowledge.
 The study found that AIBL bank has its own training institute for human resource
development activities but there is no proper HR information system. All human
resources were centrally managed by their respective headquarters’.
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17. Findings:
 AIBL followed usual procedural steps for selection and employment of qualified
employees: completion of application form, employment test (cv scrutinize,
written, viva-voce), comprehensive interview (simulation test, presentation, case
analysis), and final employee selection.
 Employees were more satisfied with salary scale, present job position and
compensation. But employees are not satisfied with working hour, leave policy
and HR policy. Employees strongly argued that they are not satisfied with the
recent HR policies and practices exercised in the bank.
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18. Recommendations:
 Educational qualifications, experiences, skills, competencies, and ICT-literacy of
the potential candidates are given emphasis in the selection and recruitment
process of employees.
 To develop human resources, AIBL should undertake different HRD programs
including continuing education and training, IT-orientation, career development,
etc. Banks’ have good number of bright employees and it should create
opportunities for employee’s higher studies with fellowship/scholarship at home
and abroad.
 AIBL should organize seminars, workshops, conferences, different short courses,
and training programs on financial matters, current issues, software up gradation
on regular basis that would definitely help to develop knowledgeable manpower,
create awareness and change mental attitudes among the professionals.
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19. Recommendations:
 AIBL and supporting bodies should allocate sufficient budget and sends
competent employees to international conferences and seminars to prepare them
for the competitive knowledge market of 21st
century.
 AIBL has a separate human resources departments. But it is essential to empower
the department or divisions for handling different issues in HRM in bank. The
divisions should be incorporated with well-organized HRIS (human resource
information systems) and modern IT facilities.
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20. Conclusion:
 The success of bank largely depends on the intellectual development of the
employees. Generally, the banking profession in Bangladesh is recognized with
standardized salary scale, higher social status and dignity. Human resources have
been centrally managed in AIBL. The proper empowerment of HR department
means their participation in preparing management policies, plan and program,
forecasting demand and supply of human resources and in policy formulation and
implementation. This will help to recruit and maintain skilled, knowledgeable and
well performed workforce to meet current and future organizational as well as
individual needs.
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21. Thanks to all
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