Internship Report on

“Human Resource Management

Functions of
IDLC Securities Limited”
 Internship Report on
Human Resource Management
Functions of
“IDLC Securities Limited”

Submitted To:
Mr. Feihan Ahsan
Lecturer
BRAC Business School

Submitted By:
Hridoy Chowdhury
BRAC University
ID: 12204002
BBA Program
Date: 20th December, 2016

To
Mr. Feihan Ahsan
Lecturer
BRAC Business School

Subject: Internship Report on “HR Functions of IDLC Securities Limited.”

Dear Sir,

I, Hridoy Chowdhury, a student of BRAC Business School, glad to say that I am submitting my
Internship Report on “The Major Functions of Human Resource Limited in IDLC Securities
Limited.” that you have given me for the essential requirement of the Internship program. I am
working on Human resource department of the company under their various HR functions. My
report is involved details about my assigned work, especially HR functions of the Company. It is
a really huge prospect for me to collect vast information in an appropriate way.

I just pray & hope that this report will give you a clear idea about HR functions of IDLC
Securities Limited. I have tried my best to express what I have erudite and practiced during the
internship program at IDLC Securities Limited. I appreciate your query and criticism on the
report because it will encourage me to learn more and enhance my knowledge. I tried to make
this report more perfection with my limitation if had any mistakes that had made due to my
limitations and oblige thereby.

Sincerely
Hridoy Chowdhury
12204002
BRAC Business School
BBA Program
 Student’s declaration
I am Hridoy Chowdhury of Bachelor of Business Administration (BBA), ID No: 12204002
declare that the Internship report entitled “Human Resource Management Functions of IDLC
Securities Limited.” is an original work done by me under the guidance of Mr. FeihanAhsan,
Lecturer, BRAC Business School, BRAC University this project work is submitted in the
indulgence of the requirements for the Internship Program. This report has not been submitted to
any other university or Institute for any other award of any degree.

----------------------------
Hridoy Chowdhury
12204002
BRAC Business School
BBA Program

IV
 Supervisor’s Certificate
This is to confirm that the internship report on „‟Human Resource Management Practices in
IDLC Securities Ltd‟‟ has been submitted for the completion of Bachelor of Business
Administration with the major in Human resource; from BRAC University carried out by Hridoy
Chowdhury, bearing ID: 12204002, Under my supervision.

I wish him every success in life.

----------------------------
Feihan Ahsan
Lecturer
BRAC Business School
BRAC University

V
 Acknowledgment
It gives me enormous gratification to thank few persons for their cordial support and help, who
have contributed directly or indirectly in preparing this report. Firstly, I express my gratitude to
Almighty who has enabled me to pursue my study. I am deeply grateful to Feihan Ahmed,
lecturer, BRAC Business School. I would like to thank him from the core of my heart for proper
instructions, suggestions and evaluations, which helped me to generate the report in the proper
way. I would also like to express my heartiest gratitude to the organization of IDLC Securities
Limited for their great support by providing the information to make this report more accurate &
perfect. I also thank Mr. Omar Naser and Ms. Shamima Akter Lovely for their tremendous
support and guidance. Their guidance and instruction helps me to understand my responsibilities
& duties easily. Writing this report has been a great experience to me while I was working on
this report I have increased a lot of my practical knowledge. It is my convection that this learning
experience will always be a source of help in my education life.

VI
 Executive Summary
IDLC is one of the most trusted and respected non-banking financial institutions (NBFI) of
Bangladesh. IDLC started their journey since 1985 and gradually become the pioneer financial
intuition in Bangladesh. IDLC have grown much in recent few years. IDLC Finance Limited is
the mother company and it has three separated subsidiaries and they are IDLC Investment
Limited, IDLC Securities Limited & IDLC Asset Management Limited. My report is about HR
functions of IDLC Securities limited.

Human Resource department are the core part of each and every company to get a competitive
man power and advantage from the competitors. It is the frameworks for helping employees
widen their personal and organizational skills, knowledge and abilities. There are many functions
are followed globally to manage their employees. The goal of development and training is to
make employees even better at what they do. This function helps to improve their personnel to
make more commitment, efficient and reliability to the company.

This report is about a little brief about Human Resource management functions are followed by
IDLC Securities Limited and how their functional process is improve their efficiency in the
market and what are the procedure follow to recruit, train, evaluate and develop their employees.
This complete analysis is based on my journey as an intern of Human Resource Department in
IDLC Securities Limited.

In my report I have tried to endorse all the Human Resource activities, Functions and policies
maintained by IDLC, find their error which are drawing them back and give them some
recommendation which may help them to make their situation better.

Vii
 Table of Contents
1.1 Introduction of the Report .................................................................................................................... 11
1.2 Objectives of the Report ....................................................................................................................... 11
1.3 Methodology......................................................................................................................................... 11
2.1 Overview of IDLC ................................................................................................................................... 13
2.2 Business Overview ................................................................................................................................ 14
2.3 IDLC Securities Limited.......................................................................................................................... 15
2.4 Financial highlights of 2011-2015 ......................................................................................................... 16
2.5 Net Brokerage Income 2011-2016 ........................................................................................................ 17
3.1 Human Resource Management Functions............................................................................................ 19
3.2 Job Analysis & Design............................................................................................................................ 19
3.3 Recruitment & Selection ....................................................................................................................... 19
3.4 Training & Development ....................................................................................................................... 20
3.5 Performance Management ................................................................................................................... 20
3.6 Compensation & Benefits ..................................................................................................................... 20
4.1 Strengths of IDLC SL .............................................................................................................................. 22
4.2 Number of Employees .......................................................................................................................... 22
4.3 Major HR Initiatives of 2015-2016 ........................................................................................................ 23
4.4 Human Resource Goal of IDLC SL .......................................................................................................... 23
4.5 Designation Hierarchy of IDLC .............................................................................................................. 24
4.6 IDLC SL HR Organogram ........................................................................................................................ 25
4.7 Major Functions of IDLC SL ................................................................................................................... 25
5.1 Recruitment & Selection ....................................................................................................................... 27
5.2 Recruitment Guidelines ........................................................................................................................ 27
5.2.1 Recruitment Proposal: ................................................................................................................... 27
5.2.2 Collection of CV: ............................................................................................................................. 27
5.2.3 Selection of CV: .............................................................................................................................. 28
5.2.4 Organizing Written / Typing test: .................................................................................................. 28

8
 5.2.5 Interview: ....................................................................................................................................... 28
5.2.6 Finalization of Recruitment:........................................................................................................... 28
5.2.7 Placement of Newly Recruited Employees .................................................................................... 29
6.1 Training & Development ....................................................................................................................... 32
6.2 Career policy ......................................................................................................................................... 33
6.3 Training: Personal Development........................................................................................................... 34
6.4 Training Need Assessment (TNA).......................................................................................................... 34
6.5 Training Feedback ................................................................................................................................. 34
7.1 Performance Appraisal ......................................................................................................................... 36
7.2 Objective of Performance Appraisal ..................................................................................................... 36
7.3 Composition of Evaluation .................................................................................................................... 36
7.4 Promotion ............................................................................................................................................. 37
8.1 Compensation Guidelines ..................................................................................................................... 39
8.2 Salary Structure ..................................................................................................................................... 39
8.3 Other Facilities ...................................................................................................................................... 40
8.4 Bonus & Benefits ................................................................................................................................... 40
8.4.1 Entitlement of Bonus ..................................................................................................................... 40
8.4.2 Festival Bonus ................................................................................................................................ 41
8.4.3 Performance Bonus........................................................................................................................ 41
8.4.4 Other Benefits ................................................................................................................................ 41
9.1 Succession Planning .............................................................................................................................. 43
9.2 IDLC’s Strength: ..................................................................................................................................... 44
9.3 Parties to Succession Planning: ............................................................................................................. 44
10.1 Recommendation................................................................................................................................ 46
10.2 Conclusion ....................................................................................................................................... 47
11. Bibliography .................................................................................................................................... 48

9
1. Introduction

10
 1.1 Introduction of the Report
This report is prepared on IDLC Securities Limited with esteem to acquaintance acquired on my
understanding during my internship period. The major topics that could be related with my
works and the organization it are discussed here. I have been assigned to prepare this report by
my honorable internship supervisor Mr. Feihan Ahsan. I believe I have attained some little level
of substantial knowledge on this renowned NBFC (non-banking financial company) and hope to
share my understandings by means of this report.

1.2 Objectives of the Report

The main objectives of the report is to provide an enhance analysis and their processes on over
all HR functions of IDLC Securities LTD. This report will reveal how IDLC focusing on
different processes they are followed of Recruitment & Selection, Training and Development,
Performance appraisal, Compensation and HR related activities.

1.3 Methodology
For preparing this term paper I have used some official documents provided by Human Resource
department and verbal communication from respective concern people.
i. Primary data: Primary data has been collected through Face to face conversation and
practicing assigned tasks.
ii. Secondary data: Sources of secondary data of this report are:-
Annual Report of IDLC Finance Ltd & Securities Ltd.
Different text book and online and offline Journals.
Website of IDLC Finance limited.

11
2. Company Overview

12
 2.1 Overview of IDLC
IDLC is one of the leading non-banking financial institutions (NBFI) of Bangladesh. The
Company is involved in the country‟s economic progress through raising entrepreneurship by
disbursing loans to SME and corporate customers IDLC provides a better standard of living to
the country‟s citizens by disbursing a wide range of retail loans.
IDLC was established in Bangladesh in 1985 through the association of International Finance
Corporation (IFC) of the World Bank, German Investment and Development Company (DEG),
Kookmin Bank and Korean Development Leasing Corporation of South Korea, the Aga Khan
Fund for Economic Development, the City Bank Limited, IPDC of Bangladesh Limited and
Sadharan Bima Corporation. As the company evolved, initial foreign shareholding of 49% was
gradually withdrawn and the last foreign shareholding was bought out by local sponsors in 2009.
Though they primarily take place with Lease Financing as core product but It also has full-
fledged to become the largest multi-product Non-Bank Financial Institution of Bangladesh,
IDLC also gives equal focus in Corporate, Retail and SME sectors. Additionally, IDLC has a
significant presence in the Capital Markets. Their stock brokerage farm, IDLC Securities
Limited, another wholly-owned subsidiary of IDLC is also amongst the top five brokers in the
country. Their securities company is quite successful in capital market and has a great influence
over the competitors.
Over the years, IDLC has achieved a significant presence in the corporate sector of Bangladesh.
IDLC is very esteemed by their clients, peers, employees and regulators for strong corporate
governance, legal compliance, high ethical standards, a liberal and enabling working
environment and strong promise to environmental and social development.
IDLC continues to play a pioneering role in introducing and popularizing a variety of financial
appliances suiting ever-changing requirements of its fast-growing clients. They are endlessly
expanding their presence to ensure the excellence of service to their clients at all times.

13
 2.2 Business Overview
IDLC Group provides financial solutions as non-banking financial institution through IDLC
Finance Limited and capital market solutions through its subsidiaries. IDLC Finance as an NBFI
offers loans across its three well-structured and focused divisions:
Corporate: This segment effects lending to a large number of corporate customers across
Bangladesh in a variation of industries and divisions. The typical loan size categorized under
this division is Taka 37.49 million and above.
SME: IDLC is among the fastest growing NBFIs in the country‟s SME segment. Assets
under this division have grown at 24.92% year-on-year and loan size is typically classified as
between Taka 2.70 million.
Consumer: The Company offers retail and home loans under this segment, thereby meeting
the lifestyle requirements of its customers. Average loan sizes under this segment comprises
of Taka 3.58 million for Home Loan and Taka 1.76million for Car Loan.
Capital Markets: IDLC Investments and IDLC Securities are two of IDLC‟s fully-owned
subsidiaries engaged in providing brokerage, merchant banking and a wide range of capital
market services.
IDLC Finance operates three wholly-owned subsidiaries:-
1. IDLC Securities Limited
2. IDLC Investments Limited
3. IDLC Asset Management Limited
These provide trading services to clients and organizations through robust trading facilities and
infrastructure, offering the best performance experience to their clients. It also offers
underwriting, primary issuances and merchant banking services. The division has also started
Discretionary Portfolio Management services and is looking to raise this portfolio, especially by
leveraging inter-divisional synergistic opportunities, especially with their Consumer division.

14
 2.3 IDLC Securities Limited
IDLC Securities Limited is fully owned subsidiary of IDLC Finance Limited. They started their
operation in 2006. They provide cash account, margin account, easy IPO and intuitional &
foreign brokerage. Now they are one of the top brokerage firms in Bangladesh and have a great
influence in market. Now they are providing services more than 14,500 customer throughout the
Bangladesh. There are more than 550 securities including stocks, corporate bonds, treasury
bonds and mutual funds in Bangladesh. It has immense success in capital market because the
total market capitalization is about $40 billion whereas the equity market capitalization is about
$33 billion. While our market-top to-GDP is just around 17%, a similar proportion is much
higher for nations like India (72%), the Philippines (61%), Thailand (98%), Malaysia (72%) and
Indonesia (39%). They accept there is adequate extension for the market to develop
fundamentally after some time with the posting of new value in the coming days. In this
attractively-placed environment, IDLCSL is positioning itself to capture a significant share of
this emerging growth, going ahead. In spite of having unfavorable market environment, IDLC
Securities Limited made a profit of Taka 96.1 million, which is 147% higher than taka 38.9
million reported in 2014. A better performance in both brokerage and investment incomes made
this stellar growth possible.

Figure-1: Operational highlights of 2015

15
 2.4 Financial highlights of 2011-2015

Figure-2: Financial highlights of 2015

From above graphs shows that financially IDLC Securities Limited is made a quite strong
position in the market. From 2011 to 2015 their net brokerage growth is about 18.02 % and
return of equity is also 5.50 million. IDLC SL‟s total turnover rose to Taka 63.8 billion in 2015,
which was the highest ever during the last four years. This metric grew by 8.8% despite the
dampened market sentiment. Net brokerage income grew by 18% in 2015 and rose to Taka 203
million, which was the highest in the last five years. Though in 2012 the whole market is fall due
to economic crisis but over the years IDLC securities limited overcome the loss and made a
strong position in the market. Recently their MD of IDLC SL promises that they will work hard
and become number 1 brokerage firm through hardworking & quality service.

16
 2.5 Net Brokerage Income 2011-2016

Net Brokerage Income

293.5

191.19 203.01
171.97
152.24
131.6

2011 2012 2013 2014 2015 2016

Figure-3: Net Brokerage Income 2011-2016

From above graph shows that 2016 is the highest net brokerage income of IDLC Securities
limited. The Graph shows that continuously their net income is increasing though in 2013
income fall but they cleverly covered in next year. 2016 is quite lucky and successful for their
company. They promise to their clients that their net brokerage income will break the record of
capital market in next year. The whole teams of IDLC SL are trying to make this statement
successful. So, their market analysis says that they will success to make their statement true to
their clients.

17
3. Literature Review on HRM

18
 3.1 Human Resource Management Functions
Human resource management deals with hiring, motivating and maintaining workforce in an
organization. It ensures employees satisfaction and maximum contribution to the goal of
company‟s objectives. According to (Armstrong, 1997), Human Resource Management can be
defined as “a strategic approach to acquiring, developing, managing, motivating and gaining the
commitment of the organization‟s key resource – the people who work in and for it.”
HRM has undergone many changes over the last twenty years, giving it an even more essential
role in today‟s organization. In the past, HRM meant to process payroll, ending birthday gifts to
employees, arranging company outings in other word more of an administrative role. The main
functional area of HRM are Job analysis, design, recruitment, Selection, Training and
development, performance management, pay structure, incentive, benefits, and labor/employee
relations.

3.2 Job Analysis & Design

Job analysis involves the evaluation and analysis of a job in terms of tasks, responsibilities,
skills, tools, knowledge and expertise required to accomplish the job requirement successfully.
Job design is a step that follows job analysis and is the process in which the work is structured,
specific tasks and responsibilities are designated to individuals or groups.

3.3 Recruitment & Selection

According to (Syamala Devi Bhoganadam, Dr. Dasaraju Srinivasa Rao, October 2014) among all
other HR functions recruitment is the prime function where employees are entry into the
organizations. It‟s a difficult task to find the right people for right task. Many other researchers
say recruitment should be ethical to the organization in order to sustain in the competitive
market. There are many other sources for traditional recruitment is by employee referrals,
transfers and promotions, walk-in and by the advertisements.

19
 3.4 Training & Development
Training is the most effective factor in the corporate world because it increases the employee‟s
efficiency & effectiveness. Employees who have more job experience are more skilled and
knowledgeable and also valuable to the market. It is very necessary for any organization to give
its employees training to get overall goals of the organization in a better way (Flynn et al, 1995;
Kaynak, 2003). The design of training needs to be very careful and most important it should
design according to employees need.

3.5 Performance Management

(Aguinis, 2011) said “Performance management is a continuous process of identifying,
measuring and developing performance in organizations by linking each individual‟s
performance and objectives to the organization‟s overall mission and goals”. Managers ensure
that employee‟s activities and outputs are compatible with the organization‟s goals and
consequently, help the organization improvement a competitive business advantage.
Performance management therefore creates a direct link between employee performance and
organizational goals and makes the employees‟ involvement to the organization explicit.

3.6 Compensation & Benefits

Human Resource Management has plays significant role in each and every organizations. Today
employees are considered companies assets so that they need to more efficient and effectively
managed. To motivate employee‟s salary and benefits is considered as one of the important
factor. According to (Nazir, 2010) employees are not willing to work only for cash, they expect
extra. This extra is known as employee benefits. It‟s also a part of a salary, people are easily get
become monotonous to their work so they need to motivate and it an important task to HR
officials to take care of them. So, salary will not only thing they want for their motivation so
anything which is equal to cash is more workable for the employees as their motivation.

20
4. HRM of IDLC Securities Limited

21
 4.1 Strengths of IDLC SL
IDLCSL believes that its quality human resources are crucial pillars of its growth. The Company
continues to develop and implement strong human resource policies to motivate its employees
and ensure their optimum contribution not only to corporate performance but also in attaining the
highest ethical standards and goals. With a strong belief that human resources infuse a significant
competitive edge, they continue to recruit the best talent available in the industry. They also
conduct diverse training and motivational programs to develop and retain a high-quality human
resource base.

4.2 Number of Employees

IDLC SL Employees
138
128
109 115

80 73

2011 2012 2013 2014 2015 2016

Figure 4: Total Number of Employees of IDLCSL

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 4.3 Major HR Initiatives of 2015-2016
 Development of a new MIS for performance management.
 Introduction of a KPI-based performance appraisal for core business and business support
employees.
 Enlarged the number of customized training programs.
 Continued with the interviews for recommended employees for promotion.
 Enhanced the quality of orientation and training plans for the new recruits.
 Launch of DKAP (Dealer Knowledge Advancement Program).

4.4 Human Resource Goal of IDLC SL

IDLC Securities Limited recognizes the interdependence between the employer and the
employees and believes both parties need to be treated in a fair manner. To this end, IDLC SL
specifically aims to do the following:
To establish and administer the policies that enable IDLC SL to develop and implement
opportunities, related to recruitment, employment, promotion, remuneration benefits, transfers
and training opportunities without any regard to age, sex, race, nationality, ethnicity, political
belief and religion.
To create an environment of trust and support within the organization that will encourage
employees to work well together as a team and at the same time, to encourage them to be
dynamic, innovative and creative.
To ensure there will be enough people with the right skills and talents to meet the company‟s
current and future needs.
To ensure there are high quality processes in place for selection, appraisal and performance
management.
To manage succession plans for all senior management positions in the company.
To ensure that government and company rules on safety, health, and hygiene at workplace are
strictly observed.
To eliminate all forms of forced labor in violation of basic human rights.

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4.5 Designation Hierarchy of IDLC
CEO & Managing Director

Deputy Managing
Director

General Manager

Deputy General Manager

Assistant General
Manager

Senior Manager

Manager

Assistant Manager

Sr. Executive Officer

Probationary Officer

Senior Officer Management Trainee

Officer

Assistant Officer

Junior Officer

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 4.6 IDLC SL HR Organogram

4.7 Major Functions of IDLC SL

IDLCSL trusts that its quality human resources are pivotal strengths of its development. The
company keeps on producing and achieves solid human asset approaches to inspire its
representatives and guarantee their ideal commitment. With a solid persuasion that HR infuses a
significant competitive edge, they keep on recruiting the best ability accessible in the business.
The HR department handles many essential elements of their business is involved in providing
labor law compliance, record keeping, hiring and training, compensation, relational assistance
and help with handling specific performance issues. These capacities are basic on the grounds
that without those capacities being finished. HR function can be thought of as having six menus:
Recruitment & Selection, Training and Development, Performance Appraisal, pay structure,
incentive & benefits, Organizational Development and HR Operation & Service delivery.

25
5. Recruitment & Selection

26
 5.1 Recruitment & Selection
IDLC Securities Limited follows standard process for recruiting people for the job. The
recruitment process is very clear and simple. If there any recruitment is needed for vacant post at
first they give advertisement to BDJOBS and company website. After collecting all CV, head of
human resource short listed the CV for further action. The details procedure is given below for
better understanding.

5.2 Recruitment Guidelines

5.2.1 Recruitment Proposal:
Every Department will get prior approval from the CEO & MD of IDLC or the Executives, to
whom the MD has delegated the authority to approve for their recruitment proposals.

5.2.2 Collection of CV:

CV for different positions may be collected through -
Publicizing the Position Opening through newspaper advertisements in the leading
national/ local dailies.
Posting the Position Opening at IDLC website.
Posting the Position Opening at different Jobsite/s (Currently at bdjobs.com).
Publicizing the Position Opening through circulation of advertisement to different
Universities / Educational Institutions.
Publicizing the Position Opening through email circulation within the Company.
Through personal connection / information.
Head Hunting firms may also be used in some cases when no potential candidate is
available for recruitment within the CV database of HR Department and other External
sources.

27
 5.2.3 Selection of CV:
CV-Screening procedure:-
Preliminary
Position Final Screening
Screening
Assistant Manager &
- - Designated Manager of HRD
above
Management Trainee & -Designated Manager of
- Concerned Department
Probationary Officer HRD
SEO, Executive Officer,
- Concerned Department - Designated Manager of HRD
Sr. Officer & Officer
Assistant Officer &
- Concerned Department - Designated Manager of HRD
Junior Officer

5.2.4 Organizing Written / Typing test:

Human Resource Department organizes the written or IT test before Final Interview and it is a
compulsory task for junior level officer. He \ she need to give a written test for his \ her respective
department.

5.2.5 Interview:
Position Preliminary Final
- Concerned Department
Junior Officer to Senior - Head of HR
Manager/ Immediate
Executive Officer - Division Head
Supervisor
- Division Head
Management Trainee & -Division Head and Head of
- Immediate supervisor
above positions HR
- Head of HR/ HR Manager

5.2.6 Finalization of Recruitment:

Finalization of candidate by the Final Review Committee.
Head of Human Resources and Head of respective Division will fix up the salary grade of
the selected candidates based on their professional qualification & experience in related
fields.

28
 Issuance of appointment/offer letter: In the offer of appointment to the applicants, the
Company shall set out the terms and conditions of the appointment. The successful
applicants shall give written acceptance of the offer.
For the position of Manager & above the appointment letter will be signed by the CEO &
Managing Director.
For the position of below Manager, the appointment letter will be signed by the Head of
Human Resources.

5.2.7 Placement of Newly Recruited Employees

Medical Examination

The successful applicant must be certified fit by a registered medical practitioner approved by
the Company (before confirmation). The fees for the said check-up shall be endured by the
Company.
Untrue Declaration

If at any time subsequent to the appointment of any employee it is found that any statement
contained in the application is in any respect untrue, the employee shall be liable to instant
release.
Period of Probation

In case of fresh recruitment (Junior / Assistant Officer Position), unless otherwise decided by the
Head of HR, the Divisional Head and Head of HR shall reserves the right to make the
appointment on twelve (12) months‟ probation. For the position of Assistant General Manager
and above, the employees shall be appointed on three months‟ probation. An extension of the
period of probation may only be given when there are adequate reasons in mitigation of the
employees‟ failure to qualify for confirmation and when, in the opinion of the Company, the
employee is likely to qualify if the probationary period is extended.

Termination of Employment during Probation

At any time during or on expiry of either the initial or the extended probationary period the
employment may be terminated by either the Company or the employee by giving 15 days‟

29
notice without assigning any reason for such termination. On termination the employee shall be
entitled to payment of salary up to and including the day of termination and no other claims
against the Company shall arise out of or during the course of employment except such claims as
may arise under any liability of the Company under the provision of any law for the time being
in force.
Confirmation of Appointment
On successful completion of the probationary period, the employee shall be confirmed in his
appointment as notified by the HRD of the Company. The appointment shall be subject to the
terms and condition of service of the Company and its rules and practices, either expressed or
implied for the time being in force.

Authority of Confirmation
On successful completion of the probationary period, the Managing Director and or his/her
designated Manager will approve the confirmation as recommended by the Functional Heads. The
HRD will notify it to the individual employee in writing.

Liability to Transfer
An employee shall be liable for service anywhere in Bangladesh or elsewhere, which the
Company may call upon the employee to perform. The transfer includes transfer from one post to
another, from one branch to another and from one department or division to another.

30
6. Employee Training & Development

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 6.1 Training & Development
IDLC gives importance on training which makes to its continuing proficiency and productivity.
It recognizes that the key responsibility for training rests with respective Division Head. The
Head of HR is liable for advising and assisting all managers to get suitable training and is
accountable to the CEO. Each year at the year end, HRD conduct the Training Need Assessment
(TNA) of the employees with the assistance of the respective Departmental Head. IDLC offers
four (4) types of training to the employees of the Company:

Local Training
In house Training
Customized Training
Foreign Training

Local Training:

Local training means nominated employees are getting training from different local training
institutions. IDLC believes that training will help them to make more efficient and eligible,
which will add value to the company. IDLC treated training as investment not expense.
In House Training:

This type of training is basically held on office premises for the employees. Especially seniors or
trainers from IDLC run the training.
Customized Training:

Customized training is similar to local training but this type of training is basically focus on
employees need. In the base of needs training programs are arranged for the employees.
Foreign Training:

This type of training is basically for mid to high level employees of IDLC. This training program
is conducted to abroad. IDLC basically sent the selected employees to foreign institution mostly
in Malaysia, Singapore, Bangkok and USA. So, after the completion of training program the
trainee share their experiences to junior level officials.

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Total Training program chart of 2016

IDLCSL No. of Training No. of Participants

Public 15 36

Foreign 0 0

In-House 18 1253

Customized 2 100

Total 35 1389

Figure 5: IDLC SL Training Program of 2016

IDLC securities limited is giving concern on employees training because they think training will
increase their employees skill and confident towards work. IDLC securities limited treat training
as their investment not cost. In 2016, IDLC SL arranged 35 training program where 1389 people
have participated in the training program. Though they did not organize foreign training for their
employees but in next year they will organize more training from 2016 including foreign training
program.

6.2 Career policy

IDLC has introduced competency management as its personnel development and management
philosophy. A range of tools have been developed to implement this new personnel management
system including Job Profiles, Personal Result Development Plans (PRDP), and Performance
Appraisal Reviews (PAR). The underlying principle of this management system is that the
employee wishes to develop him/herself and the Organization provides support to this learning
process.

33
 6.3 Training: Personal Development
IDLC Securities Limited feels that Personal Development of all employees is of the utmost
importance. A position with IDLC is not a guaranteed life-long position. Therefore IDLC
stimulates all staff to be aware of their own responsibility to enhance their employability. To
promote this, IDLC uses a system of Personal Result Development Plans and schemes.
Management allows each employee a maximum of 10 Learning Days per year.

6.4 Training Need Assessment (TNA)

During 4th Quarter of the year of each year HR department will carry out the training need
assessment (TNA) of the employees. Human Resource Department will be the initiator. HRD
will raised the requisition based on the need of employees. All training using IDLC‟s funds or
time are subject to the organizational need and should be within the budgetary level.

6.5 Training Feedback

Continuous improvement cannot occur without knowing how the existing training program is
working. Each employee has to fill up the training feedback form on attaining any customized or
in-house training.

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7. Performance Appraisal

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 7.1 Performance Appraisal
Performance Appraisal System is the tool by which the Company will measure the performance
of an individual and plan their future developments in order to enable a better fit between the
jobs and the incumbent. It is defining in advance what they must do as an individual to win in the
marketplace and later on assessing the performance based on the extent to which they achieve
results. This portion refers to the guidelines governing the process of annual performance
assessment, review and feedback to the permanent employees of the organization.

7.2 Objective of Performance Appraisal

By evaluating employee‟s performance capability, responsibility and attitude.
Maximizing efficiency of company‟s objective.
Guiding to achieve the each employee‟s career objective.
Maintaining the standard of the company.
Able to reflect the result in personnel management in fair manner.

7.3 Composition of Evaluation

This person has far surpassed their agreed objectives and agreed
1. Exceptional performance performance standards.
This person has consistently met their objectives to the agreed
performance standards. In some cases they have achieved more
2. Very good performance than their agreed objectives and to a higher standard than
expected.
This person has achieved the agreed objectives to the agreed
3. Good performance performance standards. This is the minimum performance
expected from every employee in IDLC.
This person has met some or most of their objectives to the
expected performance standards. In a few areas they did not
4. Improvement required
meet their objectives and agreed standards.

This person has not met most or all of their objectives and
expected performance standards. Their performance has been
5. Unacceptable performance
consistently poor which has proved detrimental to the team.

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 7.4 Promotion
Employees in all the positions of IDLC shall be considered for promotion on the following
criteria:

Growth in role -dimension & complexity

Resource classification (key resource, critical resource, HIPO etc.)

Individual performance track record

Market liquidity (threat)

Leadership quality

Attitude & behavior

Mobility

However, promotion is an absolute privilege of the management and cannot be claimed as a

matter of right. Promotion to the rank of two levels below of Managing Director lies with the
Board of Directors of the Company. All Promotions, other than the above, have to be
recommended by the Functional Heads. The Compensation Committee will review the
recommendation for promotions and promote those whom it feels deem fit and deserving. CEO
& Managing Director at his discretion approves all the promotions.

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8. Compensation & Benefit

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 8.1 Compensation Guidelines
Compensation is a vital factor of employment and one of the most critical HR management
policies. Human Resources control the classification and pay system. Each employee is placed in
the job classification that accurately reflects his/her responsibilities and is paid within the
established pay range for his/her job. Therefore, compensation paid to staff of IDLC must be
appropriate to attract a high quality of applicant in the entire field. The objective of IDLC‟s
compensation program is to attract potential employees, meet the needs of all current employees
and encourage well-performing employees to stay with our organization.

8.2 Salary Structure

The Salary structure is designed such as to maximize the benefit to the employee. The structure
at any point of time will ensure that the entire mentioned amount, subject to deductions for taxes,
and optional benefits, as required by law and as authorized by the employee will be credited in
the employee‟s account eventually.
With a view to optimize the tax effectiveness, the employee‟s salary will be split into basic
salary and cash allowances. Accordingly, Management may adjust the amount of cash
allowances pursuant to provision of any benefit in lieu of cash or any changes in the tax laws
from time to time with a view to maintaining the benefit in the mutual interest of the employee
and IDLC.
In addition to basic salary following cash allowances will be paid:
House Rent Allowance
Conveyance Allowance
Transport Allowance
Medical Allowance
House Maintenance Allowance
Leave Fare Assistance
Utilities and
Communication Allowance

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 Junior Officer, Assistant Officer and Subordinate Staff are entitled to Overtime
Allowance

8.3 Other Facilities

Housing Loan
Transport Loan
Personal Loan
Loan against PF
Hospitalization Scheme
Life Insurance coverage
Leave Privilege (Maternity Leave, Mandatory Leave etc.)
Furniture & Household Equipment Allowances
Transport Maintenance Support Scheme
Mobile Phone
Education Support Scheme
Welfare Fund
Spot Award
Gift hamper for new born babies Employees‟
Birthday Celebration Wedding Gift for Employees

8.4 Bonus & Benefits

8.4.1 Entitlement of Bonus
Subject to other provisions of the human resources manual guidelines declared by the
management from time to time bonus shall only be payable to the employees who would, at the
time of disbursement of bonus and also at the time of festival, be in the service of the company
and entitled to the same at that time.

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 8.4.2 Festival Bonus
Festival bonus shall be paid to all the employees, including new recruits, who are in the payroll on
the day of the festival. HRD will make the payment of festival bonus to all permanent employees
equivalent to one month‟s basic pay, each, at the time of Eid-ul-Fitr and Eid-ul-Azha irrespective
of their religion. Employees on HR contract will be paid 50% of monthly consolidated pay as
festival bonus both in Eid-ul-Fitr and Eid-ul-Azha, unless otherwise decided by the management.

8.4.3 Performance Bonus

The Company may award performance bonus from time to time depending on the actual profit
made in a given year. This bonus is subject to payment only upon board approval.

8.4.4 Other Benefits

Gratuity Fund
Welfare Fund
Provident Fund
Company Provided Car
Corporate Club Membership
Professional Membership
Group Life Insurance Scheme
Medical Insurance Plan
Hospitalization Scheme

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9. Organizational Development

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 9.1 Succession Planning
Effective Succession Planning is an essential element of good management practice in any
organization. It is a process for identifying and developing internal people with the potential to
fill other business-critical positions, either in the short- or the long-term. A good succession plan
enables a smooth transition with less likelihood of disruption to operations. As Bangladesh‟s
corporate sector develops, so does the demand and competition for recruiting and retaining
quality human resources get keener. Over the last few years or so, the numbers of banks,
financial institutions, insurance companies, telecommunication companies have exponentially
increased, creating a great demand for top quality human resources. IDLC has traditionally been
a feeder institution for banks and financial institutions. In last five years, 23 employees holding
the position of Manager and above to other Financial Institutions and MNCs. Among them 10
joined top local banks, 8 left IDLC for SCB and HSBC 3 for other NBFIs. Apart from that a
good number of talent migrated to other developed countries like Canada, Australia, USA and
UK.
IDLC create such an excellent and competent work force because of:-

IDLC‟s market image and reputation.

Institutional Board and Corporate Governance.
Transparent, fair and equitable Recruitment process.
Healthy work environment.
Smooth orientation and induction of fresh recruits.
Extensive and relevant Training at home and abroad.
Fair, equitable and competitive compensation policy compared to the market.
High Ethical Standard, morale and motivation.

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 9.2 IDLC’s Strength:
IDLC‟s core strength is its qualified and enthusiastic human resource. The company continues to
implement appropriate human resource management policies and practices to develop its
employees and to ensure their training, motivation and grooming to be its future leaders.

9.3 Parties to Succession Planning:

DMDs & General Managers
Department Heads
Branch Managers
Other key positions

Succession planning is important for any business to ensure a steady stream of capable and
qualified staff members to move into key roles as they become vacant due to retirement or
attrition. It is an effective tool for good and sound management. Effective succession planning
programs require a well-communicated process that is clear to all employees, opportunities for
participation based on interests and skills and a clear understanding that even when succession
programs are in place, there are no guarantees of succession into specific positions. The process
helps to identify employees‟ career plans and their development needs. Considering, IDLC‟s
existing strength, it is apparent that they are practicing succession planning through arranging
training, delegation of work, job rotations. The management has also given highest importance to
employee development, which is reflected in the high quality of the human resources.

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10. Recommendation & Conclusion

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 10.1 Recommendation
IDLC Securities Limited is such an organized institution that there are very few things to
recommend them. There are lots of renowned securities companies who are trying hard to
improving themselves. According to my analysis IDLC is leading almost every aspect from the
other competitors.

Upgrade the daily attendance monitoring system because they are using employee‟s
computer login time as their daily attendance. It may cause inefficiency because most of
the company counts their employees attendance by finger print or ID card screening. So
to improve the efficiency of the Human resource department, it needed to be upgrade
otherwise accuracy will not be obtained.
As they are advancing towards technological development automated leave management
software should be installed because manual adjusting leave is raising the question from
the employees about the accuracy to the HR department.
Introduce “Succession Planning” as an annual recurring task of the Human Resources
Department. It is recommended that this exercise be conducted at the time of year-end
Performance Appraisal.
Arrange training programs for all level of employees according to their need basis.
Foreign training should be arranging more for the sake of encouragement to mid-level
employees.
Enhanced delegation of work at every level for their development to the next level.
For internal departmental transfers, this should be communicate with the respective
divisional/departmental head and negotiate transfer with proper timeline.
Poor monitoring system through various departments because only way to monitor
themselves is security camera or Lync Program.
IDLC Securities need to go for more foreign training for maximum output from the
employees. Promising employees are needed to send for more foreign training so that
maximum effort can be given.

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 10.2 Conclusion
IDLC Securities Limited, a fully-owned subsidiary of IDLC offers standard brokerage services
for both our retail and institutional clients. It has seats on both Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited. IDLC Securities Limited is one of the most promising
brokerage institutions in Bangladesh. Accordingly they focus on winning in the marketplace in
order to be successful. They are trying to beat the competition to ensure that they have the best
products, the highest levels of customer service and superior employees. By ensuring this now
they have created a very strong position in the market. The reason behind of their success is has
structurally designed its organization facilitating superior communication, responsiveness and
meaningful work at various levels. Though it‟s a brokerage firm but they are consistently trying
to give importance on their HR department because if their HR is not well maintained then it
would be very difficult to find the right people for the right job. IDLC SL is aware that to make a
strong position in the market is not possible without promising manpower and it can be
maintained through human resource department. IDLCSL always ensured sufficient training
program throughout the year as investment not as expense. But need to more concern about
smooth HR operations through HRIS. IDLC earns fame with its performance and services to
their customer. Customers and clients also very loyal to IDLC that is why they are booming in
capital market with in a very short time.

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11. Bibliography
 Aguinis, D. H. (2011). Performance Management. Edinburgh Business School .
 Armstrong, M. (1997). Human Resource Management Practice. Ko gan Page Limited.
 Nazir, N. (2010, December). Compensation and Benefits: Definition and Importance.
Retrieved from HR.com: http://www.hr.com/en/app/blog/2010/02/compensation-and-
benefits-definition-and-importanc_g5kiosxm.html
 Sadhu, A. K. (2015, October 02). Job analysis vs job design. Managementversity.
 Syamala Devi Bhoganadam, Dr. Dasaraju Srinivasa Rao. (October 2014). A study on
recruitment and selection process of sai global. International Journal of Management
Research & Review.
 IDLC Website www.idlc.com

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