An Internship Report

“Recruitment System of Grameen Bank”

Submitted to the Department of Business Administration, Prime University in partial

fulfillment of the requirements for the degree of

Bachelor of Business Administration

Under the Supervision of

Rana-Al-Mosharrafa

Senior Lecturer
Department Of Business Administration
Prime University

Submitted By
Taslima Sultana Munia
ID: 131020101127
Program: B.B.A
Batch:(32nd )
Major: Human Resource Management
Date of Submission: 04,05, 2017
Department of Business administration,

Prime University
 Letter of Transmittal
Date:04.05.2017
To
Rana-Al-Mosharrafa
Senior Lecturer
Department of Business Administration
Prime University
Subject: Submission of Internship Report

Dear Sir,

I have the great pleasure to place before you my report on “Recruitment System of
Grameen Bank ”as a partial fulfillment of the requirements for the degree of Bachelor of
Business Administration. To prepare this I have gathered information from the institution
mentioned and I believe those are most important and appropriate. A part of the
information has been collected by reading different books, journals, company annual
report, and credit circulars as well as visiting bank’s web sites related to the banking
arena.

I have worked hard in preparing this report and hope that it will satisfy my course
requirement. I will be always available for answering any query about this report.

I would like to request you to accept my report and thereby oblige me.
Thanking you.

Sincerely Yours,
Taslima Sultana Munia
ID:131020101127
Program:BBA
Batch: (32nd Batch)
Major: Human Resource Management
Department of Business Administration ,Prime University
 Student’s Declaration

I do hereby earnestly declare that the work presented in this internship report has been carried

out by me and has not been previously submitted to any other institution for academic

purposes.

I also declare that the work I have presented in this report does not violate any existing
copyright.

Taslima Sultana Munia

ID:131020101127
Program:BBA
Batch: (32nd Batch)
Major: Human Resource Management
Department of Business Administration
Prime University
 Supervisor’s Approval

This is to certify that the Internship report on “Recruitment System of Grameen Bank.” is a
reliable report done by Name: Taslima Sultana Munia, ID:131020101127, Major in: Human
Resource Management, department of Business Administration, Prime University, as a partial
fulfillment of the requirement of Bachelor of Business Administration.
The report has been prepared under my guidance and is a record of the dependable work
carried out successfully.

Rana-Al-Mosharrafa

Senior Lecturer

Department of Business Administration

Prime University
 ACKNOWLEDGEMENT

I would like to express my sincere regards and heartiest thanks to my supervisor, Rana-Al-
Mosharrafa honorable teacher of the department of Business Administration, Prime University,
for her constant supervision, keen support, enthusiastic encouragements and constructive
criticism during the preparation of the report. Her professional and practical experience enriched
me to a great extent during the time of preparing the report. I firmly believe that without her
valuable guidance preparing of this report would not have been possible. I would like to take the
opportunity to thank Recruitment System of Grameen Bank for her cordial assistance & for
providing relevant papers/documents which helped me to prepare this report.

Finally, I would like to offer my heartiest thanks and gratitude to my family- whose support
brought me here and friends-who made my degree memorable.

Name:Taslima Sultana Munia

ID:131020101127
Program:BBA
Batch: (32nd Batch)
Major: Human Resource Management
Department of Business Administration,Prime University
 Executive Summary

(Chapter wise discussion about the report in different Paragraphs)

 Table of Contents

Sl. no Contents Page no

I Letter of Transmittal I
II Acknowledgement II
III Certificate of Supervisor III
IV Executive Summary IV-V
Chapter:1-Introduction
1.1 Origin of the report
1.2 Objectives of the report
1.3 Methodologies of the report
1.4 Scope of the report
1.5 Limitations of the report
Chapter:2- Literature Review
2.1 Review of the Literature
2.2 Stocks
2.3 The Three Types of Investment
Chapter-3:- Overview of Grameen Bank
3.1 Introduction of Grameen Bank
3.2 Details History of Grameen Bank
3.3 Specialties of Grameen bank
3.4 Goal and objectives of Grameen bank
3.5 Grameen bank Vision
3.6 Grameen Bank Mission
3.7 Administrative Hierarchy
3.8 Methodologies of action of Grameen Bank
3.8.1 Method of Action
3.8.2 Credit Delivery System
3.8.3 Breaking the vicious cycle of poverty through microcredit
3.8.4 10 Indicators of Grameen Bank
3.8.5 16 Decisions of Grameen Bank
3.9 Expansion and coverage
3.10 Expansion of credit fund
3.11 Formation of group and center
3.12 Nature of capital formation
3.13 Principal subsidiaries of Grameen Bank
3.14 Corporate Information of Grameen Bank
Chapter-4:- Recruitment System of Grameen Bank
4.1 Recruitment process of Grameen Bank
4.2 Recruitment policy of Grameen Bank
4.3 Sources of recruitment of Grameen Bank
4.4 Steps of Recruitment at Grameen Bank
4.5 Selection process of Grameen Bank
Chapter-5:- Findings, Recommendations and Conclusions
5.1 Findings of the report
5.2 Recommendations of the report
5.3 Conclusion
Bibliography
 Chapter-1:- Introduction
1.1 Origin of the report:-
Internship program is designed for the BBA students of on completion of the course to gain the
practical knowledge about some business perspectives. We have learnt so many things in our
academic curriculum but we do not know how to apply the knowledge in our practical life.
Theoretical knowledge becomes more fruitful when we engage ourselves in such field of make
proper use of our theoretical knowledge in our practical life. Internship program has the three
phases- orientation of the organization, the project part & the report writing. In the part of
orientation of the organization, an internee gets introduced with the structure, functions of the
organization & performance of the organization. The project part pertaining to a particular
problem or searching topic matching with the capacity of an internee& the report writing is the
summary of the internee’s analysis, findings & achievements in the preceding two phases.

The report is titled as “Recruitment System of Grameen Bank”. As a student of BBA, this
study will be more effective & efficient for me in my practical life. I have worked at the
International Department of the head office of Grameen Bank to complete the internship
program which is one of the requirement for the completion of BBA program. Recruitment and
selection process is one of the most important HR function which makes a great impact on the
revenue growth and the profit margins of a company as compared to other tasks such as
retention, on-boarding, leadership development and managing talent. In addition, recruitment and
selection process is also more important than restructuring the organization, work/ life balance
and strategic human resource management. As a requirement for the completion of the internship
program, we need to submit this report. This report is an integral part of the BBA program which
pushed the students into a real life situation. The report is generated under my honorable
supervisor of Department of Business Administration of Prime University, Dhaka.
1.2 Objectives of the report:Without objective, nothing can be counted as successful one.
My internship program has also directed to serve some particular objectives. So I have also some
objectives behind the preparation of this report. The objectives behind the preparation of this
report are mentioned below-
Main objective:
• To explore the various sources of recruitment followed in Grameen Bank
• To understand the recruitment and selection procedure followed in Grameen Bank.

Specific Objective:
• To know the Opinion of respondents about recruitment System of Grameen Bank.
• To suggest some possible recommendations to overcome the problems.

1.3 Methodologies of the report:-

All information included in this report has been collected from different sources. To understand
different conceptual matters I have undergone group discussions, sometimes asked questionnaire
to the responsible officers of Grameen Bank, took help from the websites & different published
articles in the journals & books have been used. The sources of information are divided into two
main ways which are mentioned below-

1.3.1 Primary Sources:-

• Some primary data are collected by questionnaire.

• Face-to-face conversation with the respective officials.
• Conversation with my internship co-ordinator of Grameen Bank
1.3.2 Secondary Sources:-
• Annual reports of Grameen Bank
• Different books, training papers, manuals, Newspapers and Journals.
• Official website of Grameen Bank.
• Various video Tutorials of Grameen Bank in websites .
1.4 Scope of the report:-

This report focuses on the recruitment System of Grameen Bank. Recuitement System is a part
of the human resource management of any organization. There are many functions of human
resource management of an organization. Grameen Bank also has a different human resource
management policy which are totally different from other banking organization as Grameen
Bank is not run under general banking rules. So Grameen bank follows a different recruitment &
selection policy which is a very important task of the human resource management of Grameen
Bank. Hence This report is prepared about the recruitment System of Grameen Bank so the scope
of this report is limited to the recruitment System of Grameen Bank.

1.5 Limitations of the report:-

There are some limitations that I have faced in preparing this report. Basically I faced difficulties
in collecting data from the different sources. For secondary data, I faced problem of unorganized
record of documents keeping by different sources. Preparing the report I faced some difficulties
which are:

• The unwillingness of the busy key persons, necessary data collection became hard.
• Large scale research was not possible due to constrains and restrictions posed by the
organization. Unavailability of sufficient written documents as required

making a comprehensive study. In many cases up to date information was not available.
• Lack experiences have acted as constraints in the way of meticulous exploration of the
topic. Being the temporary member of the organization, it is not possible on my part to
express some of the sensitive issues.
• The study may not give exact result as it is a study of our learning process.
• Again for formalities constraints allowance was restricted. That’s why information
shortage occurred.
 Chapter- Two:- Literature Review
2.1 Review of the Literature
That deposits and loan advances of Grameen Bank are less sensitive to interest changes than
those of specialized Banks (GB). so (GB) should not make abrupt change in lending or deposit
rates by following the (GB). If GB change their lending or deposit rates, their deposits or loans
and advances will e affected less than those of GB. Moreover, deposits of GB have higher
volume and higher volatility than those of GB.

2.2 Stocks
Stocks are literally certificates that say you own a portion of a company. More broadly speaking,
all traded securities, from futures to currency swaps, are ownership investments, even though all
you may own is a contract. When you buy one of these investments, you have a right to a portion
of a company's value or a right to carry out a certain action (as in a futures contract). Your
expectation of profit is realized (or not) by how the market values the asset you own the rights to.
If you own shares in Sony and Sony posts a record profit, other investors are going to want Sony
shares too. Their demand for shares drives up the price, increasing your profit if you choose to
sell the shares.

That the details the process whereby multivariate interdisciplinary measures of potential to
potential to perform are integrated with performance measures to develop models of retail
performance for bank branches. The predictive models use the key business drivers of a major
trading bank as dependent variables. Independent variables explaining business drivers are the
theorized potential variables that measure the capacity to generate retail business.

2.3 Business
The money put into starting and running a business is an investment. Entrepreneurship is one of
the hardest investments to make because it requires more than just money. Consequently, it is
also an ownership investment with extremely
large potential returns. By creating a product or service and selling it to people who want it,
entrepreneurs can make huge personal fortunes. Bill Gates, founder of Microsoft and one of the
world's richest men, is a prime example.
2.3 The Three Types of Investment
Investment, as the dictionary defines it, is something that is purchased with money that is
expected to produce income or profit. Investments can be broken into three basic groups:
ownership, lending and cash equivalents.

Real Estate
Houses, apartments or other dwellings that you buy to rent out or repair and resell are
investments. The house you live in, however, is a different matter because it is filling a basic
need. The house you live in fills your need for shelter and, although it may appreciate over time,
it shouldn't be purchased with an expectation of profit. The mortgage meltdown of underwater
mortgages it produced are a good illustration of the dangers in considering your primary
residence an investment.

stated that effects of exchange rate depend on the net position of the bank in foreign currencies,
when banks had positive net position, depreciation of foreign currencies negatively affected the
stock prices of banks before year 1979 and after 1979 banks stock returns responded positively
with the depreciation of foreign currencies as banks had changed from positive to negative net
open positions. Stephen kealhofer stated that banks earn money from loans by their
underwriting or distribution activities. These earnings are represented by the difference in value
between the funds lent and the claim created on the borrower. Those earnings can be achieved
immediately, via selling the loan, or subsequently, by holding the loan until it matures. However,
in the latter case, it is difficult to separate from the subsequent cash flows which ones represent
the earnings to underwriting and which the earnings to the portfolio itself.

K.A Francis stated that loan is an amount borrowed from a bank or other institution that loans
money. Borrowers sign a promissory note that states the terms of the loan and the length of time
for repayment. Loans usually require an amount of interest to be paid back with the loan. Also
stated that a loan can be borrowed and paid back in increments over a period of time. Because it
can be paid back in smaller amounts, paying back the loan is less than a hardship that losing a
large amount from one paycheck.

Advances are generally interest free, but must be paid back, usually from the next paycheck.
Loans will have origination fees and interest, but can be repaid over a longer length of time.
According to Al-Shamrnari and salirnt(1998) profitability ratio especially return on equity
(ROE) signals the earning capability of the organization. They also suggest that

Ownership Investments
Ownership investments are what comes to mind for most people when the word "investment" is
batted around. Ownership investments are the most volatile and profitable class of investment.
The following are examples of ownership investments:

Nill Kokemuller stated that loans and advances are general descriptions of debt obligations
companies owe and must show on balance sheet as port of total liabilities formal contracted
loans are typically designed as “notes payable” on a balance sheet, whereas advances or
purchases on credit are recorded as accounts payable.
 Chapter-3:- Overview of Grameen Bank
3.1.Introduction of Grameen Bank:-
The Grameen Bank is a Nobel Peace Prize-winning microfinance organization and community
development bank founded in Bangladesh. It makes small loans (known as microcredit or
"Grameen credit") to the impoverished without requiring collateral. The name Grameen is
derived from the word gram which means "rural" or "village" in the Bengali Language.

3.2. Details History of Grameen Bank:-

In August 1976, Dr. Muhammad Yunus, then Head of the Department of Economics at the
University of Chittagong, started a project called Grameen Bank project. In 1979, the project
expanded in to Tangail in corporation with Bangladesh Bank. In October 1983, it was established
as an independent Bank. Grameen Bank was born in village of Jobra. Today Grameen Bank is a
huge micro credit institution. It is larger than many Commercial Banks in Bangladesh. It has
been replicated in more than 100 countries of the world. Grameen Bank is owned by the
borrowers of the Bank. The main goal is to make credit available to the rural poor, mostly
woman, in the struggle against poverty. In doing so, borrowers are given loans for income
generating purposes and housing. All loans are given without collateral and without legal
instruments. Grameen Bank loans are paid on a weekly basis.In 2002, Grameen Bank introduced
its struggled member program, especially designed to lend money to the beggars of find a
dignified livelihood. They are offered interest free loan. By the end of July 2015, cumulative
members under this program reached 78,420. A total US $ 2.59 million has so far been
disbursed.
Grameen Bank introduces Higher Education loan for the borrower children from 2000.By July
2015 there are 53,421 students received higher education loan from Grameen Bank. In an effort
to encourage members to educate their children, Grameen offers Scholarships to children of its
members. By July 2015-2, 24,791 students (both boys and girls) have received scholarships
equal to US $ 5.07 million. In July 2015, Grameen Bank 2568 branches, 268 offices, 40 zonal
offices and 40 zonal audit offices.
Through 1,42,223 centers, spread over 81390 villages, over US$ 17415.60 million have been
distributed to nearly 8.68 million borrowers, 96% of them are women. Saving balance of the
borrowers stands at US$ 71377.01 million.Housing loan total US$ 386.55 million and have been
disbursed to 6, 92,865 members. The outstanding amount of loans stands at US$ 0.21 million.

In 2006, Grameen Bank and its founder Professor Dr. Muhammad Yunus won the Nobel Peace
prize.

3.3. Specialties of Grameen bank:-

By nature the commercial banks credit fund and make profit by lending at higher rates of interest
relative to the deposit and borrowing rates. The demand and supply of funds in free markets
usually determine the rates. Demand and supply of funds, in free market. Usually determine the
rates. The demand and supply of funds in free markets usually determine the rates of interest.
The Grameen Bank also maintains this principle of fund accumulation and profit credit ion. The
commercial banks of Bangladesh are regulated by the banks companies Act and are obliged to
follow the directions and guidelines of the central band. But the Grameen Bank is operating
under if own ordinance.

The Grameen bank, ordinance 1983 and enjoying full autonomy. The commercial bank secure
collateral against lending but the Grameen Bank is lending without any visible collateral unlike
other banks, Grameen Bank do not provide loan to an individual. It forms group of borrowers
before loan sanction Grameen Bank is fundamentally a group –based lending in situation
designed especially to work with the rural poor and unlike many other financial institutions if
recovers the lending weekly in equal installment with interest. If collects different types of
compulsory saving from the group members through which, capital accumulates.

3.4. Goals and objectives of Grameen bank:-

The goal, which is proclamation by the Grameen Bank, is poverty alleviation mentioning the
credit as the most powerful instrument of engine of development, if has been providing group –
based credit facilities to the poorest section of rural society for the creation of self- employment
and income generating activities. The objectives, which are specified by the Grameen Bank are
mentioned below: -
• To empower the rural poor especially the women who are seriously neglected and
ignored, through creation of self-employment opportunities and freedoms of them.
• To provide financial services exclusively to the poorest section of rural area which is
excluded from the formal credit institutions.
• To rescue the poor people from the informal moneylenders who arte exalting them by
charging exorbitant rate of interest of credit.
• To provide organizational support to the disadvantage people for better use of credit and
income as well.
• To develop human capital in the rural areas through providing developmental programs
regarding education, health, nutrition, disaster management etc.
• To mobilize savings as a part of future nope for poor.
• To reduce rural unemployment and dependency rat by offering self-employment
opportunities. In rural non-farm sector.
• Extend banking facilities to rural bottom poor, without any collateral.
• Eliminate the exploitation of money lenders.

Reverse the age-old vicious cycle of poverty through small credit.

3.5. Grameen bank Vision:-

The vision of Grameen Bank is “Banking for the poor people”.

3.6. Grameen Bank Mission:-

The mission of Grameen Bank is to provide comprehensive financial services, empowering the
poor to realize their potential and break out of the vicious cycle of poverty.

3.7. Administrative Hierarchy:-

An organizational structure or administrative hierarchy defines how activities such as task
allocation, coordination and supervision are directed toward the achievement of organizational
aims. It can also be considered as the viewing glass or perspective through which individuals see
their organization and its environment. n organization can be structured in many different ways,
depending on its objectives. The structure of an organization will determine the modes in which
it operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as the branch,
department, workgroup and individual.

Hence Grameen Bank is also a formal organization, it has also a formal structure or hierarchy
which indicates the position of power of different individuals with respective power. Grameen
Bank is working in a very much formal oranogram. Top of the pyramid stays its Head office or
central office, the head office controls the zonal offices. Each zonal office consists of 8 area
offices. Area offices control the branch offices. Each area office consists of ten to twelve branch
office. Branch offices control the centers of Grameen Bank. Each branch office consists of fifty
to sixty centers and at the bottom the members who are the owner of the bank. The diagram will
clear hierarchy.The administrative hierarchy of Grameen bank is shown in the follow in the
following diagram:-
 Figure 01: Organizational Chart of Grameen Bank

3.8. Methodologies of action of Grameen Bank:-

3.8.1. Method of Action:-
Method of action of an organization describes how an organization performs its day to day
activities in which way or ways. Hence Grameen Bank is also an organization, Grameen Bank
also has a method of action. Grameen Bank’s Method of action can be illustrated by some
principals of its own. These principles are illustrated below-

• Start with the problem rather than the solution: a credit system must be based on a survey
of the social background rather than on a pre-established banking technique.
• Adopt a progressive attitude: development is a long-term process which depends on the
aspirations and commitment of the economic operators.
 • Make sure that the credit system serves the poor, and not vice-versa: credit officers visit
the villages, enabling them to get to know the borrowers.
• Establish priorities for action vis-a-vis to the the target population: serve the most
poverty-stricken people needing investment resources, who have no access to credit.
• At the beginning, restrict credit to income-generating production operations, freely
selected by the borrower. Make it possible for the borrower to be able to repay the loan.
• Lean on solidarity groups: small informal groups consisting of co-opted members
coming from the same background and trusting each other.
• Associate savings with credit without it being necessarily a prerequisite.
• Combine close monitoring of borrowers with procedures which are simple and
standardized as possible.
• Do everything possible to ensure the system’s financial balance.
• Invest in human resources: training leaders will provide them with real development
ethics based on rigor, creativity, understanding and respect for the rural environment.

3.8.2Credit Delivery System:-

Grameen Bank Credit Delivery means taking credit to the very poor in their villages by means of
the essential elements of the Grameen credit delivery system. Grameen Bank credit delivery
system has the following features:

1. There is an exclusive focus on the poorest of the poor.

Exclusivity is ensured by:

I) establishing clearly the eligibility criteria for selection of targeted clientele and adopting
practical measures to screen out those who do not meet them in delivering credit,

II) priority has been increasingly assigned to women the delivery system is geared to meet the
diverse socio-economic development needs of the poor.
1) Borrowers are organized into small homogeneous groups:-

Such characteristics facilitate group solidarity as well as participatory interaction. Organizing the
primary groups of five members and federating them into centers has been the foundation of
Grameen Bank’s system. The emphasis from the very outset is to organizationally strengthen the
Grameen clientele, so that they can acquire the capacity for planning and implementing micro
level development decisions.

The Centers are functionally linked to the Grameen Bank, whose field workers have to attend
Centre meetings every week.

1) Special loan conditionalities which are particularly suitable for the poor.These include:

• Loans given without any collateral

• Loans repayable in weekly installments spread over a year Page-6
• Eligibility for a subsequent loan depends upon repayment of first loan
• Individual, self chosen, quick income generating activities which employ the skills that
borrowers already posses
• Close supervision of credit by the group as well as the bank staff
• Stress on credit discipline and peer support solidarity.
• Special safe gaurds through savings to minimise the risks that the poor confront
• Transparency in all bank transactions most of which take place at centre meetings.

Simultaneous undertaking of a social development agenda addressing basic needs of the

clientele. This is reflected in the “sixteen decisions” adopted by Grameen borrowers. This helps
to:
i) Raise the social and political consciousness of the newly organized groups
ii) Focus increasingly on women from the poorest households, whose urge for survival has a far
greater bearing on the development of the family
iii) Encourage their monitoring of social and physical infrastructure projects – housing,
sanitation, drinking water, education, family planning, etc.

Design and development of organization and management systems capable of delivering

programmme resources to targeted clientele. The system has evolved gradually through a
structured learning process, that involves trials, errors and continuous adjustments. A major
requirement to operationalize the system is the special training needed for development of a
highly motivated staff, so that the decision making and operational authority is gradually
decentralized and administrative functions are delegated at the zonal levels downwards.

Grameen Bank also arranges loan portfolio for its members. Day to day, Grameen Bank tries to
expand its loan portfolio. The bank's loan portfolio grew rapidly in the early 1990s, but it has
now shrunk to 1996 levels, at $190 million. Profits have declined about 85%, to the equivalent of
$189,950 last year from $1.3 million in 1999. The bank, with 1,170 branches, all in Bangladesh,
has high operating costs. Grameen would be showing steep losses if the bank followed the
accounting practices recommended by institutions that help finance micro lenders through low-
interest loans and private investments. And the situation may be worse than it appears; the bank
is converting many overdue loans into new "flexible" loans that Grameen reports as up-to-date.
Expansion of loan portfolio to meet diverse development needs of the poor.
As the general credit programme gathers momentum and the borrowers become familiar with
credit discipline, other loan programmes are introduced to meet growing social and economic
development needs of the clientele. Besides housing, such programmes include:

• Credit for building sanitary latrines

• Credit for installation of tube wells that supply drinking water and irrigation for kitchen
gardens
• Credit for seasonal cultivation to buy agricultural inputs
• Loan for leasing equipment / machinery, ie., cell phones purchased by Grameen Bank
members
• Finance projects undertaken by the entire family of a seasoned borrower.
The underlying premise of Grameen is that, in order to emerge from poverty and remove
themselves from the clutches of usurers and middlemen, landless peasants need access to credit,
without which they cannot be expected to launch their own enterprises, however small these may
be. In defiance of the traditional rural banking postulate whereby “no collateral (in this case,
land) means no credit”, the Grameen Bank experiment set out to prove – successfully – that
lending to the poor is not an impossible proposition; on the contrary, it gives landless peasants
the opportunity to purchase their own tools, equipment, or other necessary means of production
and embark on income-generating ventures which will allow them escape from the vicious cycle
of “low income, low savings, low investment, low income”. In other words, the banker’s
confidence rests upon the will and capacity of the borrowers to succeed in their undertakings.

The mode of operation of Grameen Bank is as follows. A bank branch is set up with a branch
manager and a number of center managers and covers an area of about 15 to 22 villages. The
manager and the workers start by visiting villages to familiarize themselves with the local milieu
in which they will be operating and identify the prospective clientele, as well as explain the
purpose, the functions, and the mode of

operation of the bank to the local population. Groups of five prospective borrowers are formed;
in the first stage, only two of them are eligible for, and receive, a loan.

The group is observed for a month to see if the members are conforming to the rules
of the bank. Only if the first two borrowers begin to repay the principal plus interest over aperiod
of six weeks, do the other members of the group become eligible themselves for a loan. Because
of these restrictions, there is substantial group pressure to keepindividual records clear. In this
sense, the collective responsibility of the group serves as the collateral on the loan. Loans are
small, but sufficient to finance the micro-enterprises undertaken by borrowers: rice-husking,
machine repairing, purchase of rickshaws, buying of milk cows, goats, cloth, pottery etc. The
interest rate on all loans is 16 percent.

The repayment rate on loans is currently – 95 per cent – due to group pressure and self-interest,
as well as the motivation of borrowers. Although mobilization of savings is also being pursued
alongside the lending activities of the Grameen Bank, most of the latter’s loanable funds are
increasingly obtained on commercial terms from the central bank, other financial institutions, the
money market, and from bilateral and multilateral aid organizations.

3.8.3. Breaking out the vicious cycle of poverty through microcredit:-

The Grameen Bank is based on the voluntary formation of small groups of five people to provide
mutual, morally binding group guarantees in lieu of the collateral required by conventional
banks. The assumption is that if individual borrowers are given access to credit, they will be able
to identify and engage in viable income-generating activities – simple processing such as paddy
husking, lime-making, manufacturing such as pottery, weaving, and garment sewing, storage and
marketing and transport services. Women were initially given equal access to the schemes, and
proved not only reliable

borrowers but astute entrepreneurs. As a result, they have raised their status, lessened their
dependency on their husbands and improved their homes and the nutritional standards of their
children. Today over 90 percent of borrowers are women.

Intensive discipline, supervision, and servicing characterize the operations of the Grameen Bank,
which are carried out by “Bicycle bankers” in branch units with considerable delegated authority.
The rigorous selection of borrowers and their projects by these bank workers, the powerful peer
pressure exerted on these individuals by the groups, and the repayment scheme based on 50
weekly installments, contribute to operational viability to the rural banking system designed for
the poor. Savings have also been encouraged. Under the scheme, there is provision for 5 percent
of loans to be credited to a group find and Tk 5 is credited every week to the fund. The success
of this approach shows that a number of objections to lending to the poor can

be overcome if careful supervision and management are provided. For example, it had earlier
been thought that the poor would not be able to find renumerative occupations. In fact, Grameen
borrowers have successfully done so. It was thought that the poor would not be able to repay; in
fact, repayment rates reached 97 percent. It was thought that poor rural women in particular were
not bankable; in fact, they accounted for 94 percent of borrowers in early 1992.
It was also thought that the poor cannot save; in fact, group savings have proven as successful. It
was thought that rural power structures would make sure that such a bank failed; but the
Grameen Bank has been able to expand rapidly. Indeed, from fewer than 15,000 borrowers in
1980, the membership had grown to nearly 100,000 by mid-1984. By the end of 1998, the
number of branches in operation was 1128, with 2.34 million members (2.24 million of them
women) in 38,957 villages. There are 66,581 centres of groups, of which 33,126 are women.
Group savings have reached 7,853 million taka (approximately USD 162 million), out of which
7300 million taka (approximately USD 152 million) are saved by women.

It is estimated that the average household income of Grameen Bank members is about

50 percent higher than the target group in the control village, and 25 percent higher than the
target group nsson-members in Grameen Bank villages. The landless have benefited most,
followed by marginal landowners. This has resulted in a sharp reduction in the number of
Grameen Bank members living below the poverty line, 20 percent compared to 56 percent for
comparable non-Grameen Bank members. There has also been a shift from agricultural wage
labour (considered to be socially inferior) to self-employment in petty trading. Such a shift in
occupational patterns has an indirect positive effect on the employment and wages of other
agricultural waged labourers. What started as an innovative local initiative, “a small bubble of
hope”, has thus grown to the point where it has made an impact on poverty alleviation at the
national level “.
3.8.4. 10 Indicators of Grameen Bank:-
Every year Grameen Bank staffs evaluate their work and check whether the socio-economic
situation of Grameen Bank members is improving. Grameen Bank evaluates poverty level of the
borrowers using ten indicators.

A member is considered to have moved out of poverty if her family fulfills the following criteria:

1. The family lives in a house worth at least Tk. 25,000 (twenty five thousand) or a house with a
tin roof, and each member of the family is able to sleep on bed instead of on the floor.
2. Family members drink pure water of tube-wells, boiled water or water purified by using alum,
arsenic-free, purifying tablets or pitcher filters.
3. All children in the family over six years of age are all going to school or finished primary
school.
4. Minimum weekly loan installment of the borrower is Tk. 200 or more
5. Family members have adequate clothing for everyday use, warm clothing for winter, such as
shawls, sweaters, blankets, etc, and mosquito-nets to protect themselves from mosquitoes.
Family uses sanitary latrine.
6. Family uses sanitary latrine
7. Family has sources of additional income, such as vegetable garden, fruit-bearing trees, etc, so
that they are able to fall back on these sources of income when they need additional money.
8. The borrower maintains an average annual balance of Tk. 5,000 in her savings accounts.
9. Family experiences no difficulty in having three square meals a day throughout the year, i. e.
no member of the family goes hungry any time of the year.
10. Family can take care of the health. If any member of the family falls ill, family can afford to
take all necessary steps to seek adequate healthcare.
3.8.5. 16 Decisions of Grameen Bank:-
Grameen Bank is not only concerned about the financial benefits of its membersbut also this
bank is concerned about the social benefits, healthcare and environmental benefits of its
members. So we can say that Grameen Bank is also a social institution hence Grameen Bank
performs various types of social activities for the welfare of the organization. All the members of
the Grameen Bank are compelled to bound these sixteen decisions of Grameen Bank for their
own interest and for their social dignity. Grameen Bank performs its social activities by sixteen
decisions of its own which includes not giving and taking dowry, use of sanitary latrines,
building own house of the members etc.For the welfare of the members of the Grameen Bank, it
has taken sixteen decisions which are mentioned below-

• We shall follow and advance the four principles of Grameen Bank’s Discipline, Unity,
Courage and Hard work – in all walks of our lives.
• Prosperity we shall bring to our families.

• We shall not live in dilapidated houses. We shall repair our houses and work towards
constructing new houses at the earliest.
• We shall grow vegetables all the year round. We shall eat plenty of them and sell the
surplus.
• During the planting seasons, we shall plant as many seedlings as possible.
• We shall plan to keep our families small. We shall minimize our expenditures. We shall
look after our health.
• We shall educate our children and ensure that they can earn to pay for their education.
• We shall always keep our children and the environment clean.
• We shall build and use pit-latrines.
• We shall drink water from tubewells. If it is not available, we shall boil water or use
alum.
• We shall not take any dowry at our sons’ weddings, neither shall we give any dowry at
our daughters’ weddings. We shall keep our centre free from the curse of dowry. We
shall not practice child marriage.
 • We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.
• We shall collectively undertake bigger investments for higher incomes.
• We shall always be ready to help each other. If anyone is in difficulty, we shall all help
him or her.
• If we come to know of any breach of discipline in any centre, we shall all go there and
help restore discipline.
• We shall take part in all social activities collectively.

3.9. Expansion and coverage:-

The Grameen bank while was inaugurated in small village in 1976 with Us Dollar 27 only, at
present stand out as the world’s largest specialized micro institution, the expansion of fund,
coverage of geographical area and rural dwellers are mentioned here.

3.10. Expansion of credit fund:-

Up to September 2000 Grameen bank has disbursed a cumulative total of Tk. 126.789’40 million
credit, which is higher than any other specialized credit program institution credit not only in
Bangladesh but in the world.

3.11. Formation of group and center:-

The Grameen bank form a group of five members chosen firm five separate households living in
the same aria and bearing same, Socio-economic and cultural starters, the entitlement of more
than one member firm the dame household in the same group is strictly prohibited. The Grameen
Bank that it considers those individuals who belong to landless or asset less households mentions
it only. Who elects a member or the group as the chairman, the Grameen Bank maintains
financial discipline in the group level. The group members undergo a training program for a
period of least 7 days. After the completion of the training program, the workers of the Grameen
Bank select the potential groups as well as members for delivering credit.
3.12. Nature of capital formation:-
At present different type of obligatory saving and weekly collection of loan installments from the
member borrows and loan from Bangladesh bank and other commercial bank are the main
comments of the working capital of Grammen Bank. Grameen Bank that started its Banking
operation in October 1989 with a total of Tk130 millions of which Tk. 100 million is authorized
and Tk30 million is paid-up capital, at the very early stage, Grameen Bank received huge amount
of grants and confessional loan firm external sources, Till December 1994 it received a total of
Tk.
31365.30 million as grants and subsidized loan firm foreign as well as domestic sources.

3.13. Principal subsidiaries of Grameen Bank:-

Grameen Trust:- Grameen Trust(GT), a non-profit and non-government organization

established in 1989 uses microcredit as a tool for fighting poverty and follows the Grameen Bank
approach for the purpose. It supports and promotes poverty focused microcredit programs all
over the world under its Grameen Bank Replication Program (GBRP) through a number of ways
- dialogue programs for potential replicators, training and technical assistance to replication
projects, funding selected projects, and monitoring performance. Grameen Trust funds are
provided in two forms
- seed capital and scaling up fund. As of August 2007, it has provided support to 138 replication
partners in 37 countries of the world. Under the Build, Operate and Transfer (BOT) program, the
Trust directly implements the projects to respond to the need for immediate and rapid
implementation of poverty focused microfinance programs. Grameen Trust hosts the Grameen
Global Network (GGN) and publishes the Grameen Dialogue newsletter to promote the cause of
microcredit movement. To implement the replication program, it received funds from the
MacArthur Foundation, United Nations Capital Development Fund (UNCDF), Deutsche
Gesellschaft für Technische Zusammenarbeit (German Technical Cooperation or GTZ), United
States Agency for International Development (USAID), United Nations High Commissioner for
Refugees (UNHCR), United Nations Office for Project Services (UNOPS), the Citigroup
Foundation, the World Bank and Ford Foundation.
a) Grameen Motsho(Fisheries) Foundation:- Grameen Fisheries and Livestock
Foundation or Grameen Motsho O Pashusampad Foundation (GMPF), a non-profit organization,
was founded as Grameen Fisheries Foundation or Grameen Motsho Foundation (GMF), in
February 1994 to mitigate poverty through aquaculture & fisheries, as well as an integrated fish-
crop-livestock and dairy development

farming system. The mandates of the organization are to provide rural landless poor, especially
women, to gain access to common resource properties; replace exploitation with community
empowerment; replace stagnation with social and economic growth; replace traditions with
modernity; provide women with legal and gender rights; and to provide food security and
sustainable livelihood.

b) Grameen Uddog:-Grameen Enterprise, owner of the brand Grameen Check. Grameen

Uddog takes initiative to train and encourage the weavers in the village to produce by hand fines
quality hand loom fabrics and produce ready to items and other products.

c) Grameen Telecom:-Grameen Telecom (GTC) is a not-for-profit company in Bangladesh

established with a partial stake in Grameen Phone (GP). GTC has driven the pioneering GP
program of Village Phone that enables rural poor to own a cell-phone and turn it into a profit
making venture. The vision behind the village phone program was formulated by Iqbal Quadir
who was convinced that a mobile phone could become a source of income generation. Quadir
worked with Professor Yunus and the Norwegian company Telenor to make the program a
reality. Currently Grameen Telecom provides mobile phones among the villagers of the country

d) Grameen Shakti (Energy):-Grameen Shakti (GS) is a renewable energy social

enterprise established in 1996 to promote, develop and popularize renewable energy technologies
in remote, rural areas of Bangladesh. It is a part of the Grameen family founded to take the
Grameen Bank objective of alleviating poverty for the extreme poor through microcredit.
Grameen Shakti into one of the largest and fastest-growing renewable energy companies in the
world. GS trained its engineers to be ‘social engineers’ who go from door-to-door to demonstrate
the effectiveness of renewable energy. GS trained local youth as technicians to ensure that
people would have efficient and free after-sales service right on their doorstep. Grameen Shakti
is the leading company on renewable energy in Bangladesh and one of the fastest growing solar
energy companies in the world. As of December 2010 Grameen Shakti has installed 25MWp
solar system. Beside these, Grameen Shakti have installed solar
mobile charging van, Solar lighting Boat, Solar emergency Lighting, Solar water Purifier, solar
power telecom systems, Off grid power supply system and also nowadays they are encouraging
urban people to use hybrid solar- National grid system with low price. Grameen Shakti has been
honoured with a Right Livelihood Award for its work, and has also won two Ashden Awards, in
2006 and 2008.

e) Grameen Cybernet Ltd:- ameen Cyber Net Ltd has been Bangladesh’s leader in
Internet service since it commenced operation in July 1996 Its Chief Executive has had an
extensive career in education and information technology in the US and is assisted by a team of
bright, young executives. The company boasts of over 30,000 clients in various sectors. In order
to provide seamless access to the Internet, Grameen CyberNet Ltd. has obtained 130 dial up
lines, with hunting features. It also offers customer service, technical support, WebPages
consulting, and a help desk. The company’s WebPages provides extensive information on the
company, as well as many useful links to aid users in exploring cyberspace 24 hours a day.

f) Grameen Communications:-Grameen Communications (GC) is a not-for-profit

information technology company established in Bangladesh in 1997, with a portfolio that
includes software products and services, internet services, hardware & networking services and
IT education. The life of the company began as an IT support unit under Grameen Trust in 1994.
Besides providing IT support to various Grameen family organizations it in charge of developing
systems for organizations like CASHPOR Financial and Technical Services Private Limited
(CFTS) in Mirzapur District, Uttar Pradesh, India, CMC in UIndia, Swayam Krishi Sangham
(SKS) in Hyderabad, India, Grameen Koota in Bangalore, India, Moris Rasik in East Timor,
Ganesha Foundation in Jakarta, Indonesia, and Ahon sa Hirap Inc. (ASHI) in Manila,
Philippines. The company has developed the Village Computer and Internet Program (VCIP) to
set up a number of multipurpose Cyber Kiosks in rural areas using different connectivity
solutions for information access, communication and IT education. The first VCIP was
established in a room rented from the Grameen bank at Madhupur Upazila, which is connected
through microwave link to the VSAT at Grameen Communications office 160 km away in
Dhaka. Two others were established at
Sarishabari Upazila and Mirzapur Upazila. A partner of International Development Research
Centre (IDRC) initiative Pan Asia Networking (PAN), GC is also developing a program with
Digital Divide Data of United States to provide data entry jobs for rural Bangladeshis.

g) Grameen Solution Limited:-Grameen Solutions Limited(GSL) is a software

development company. Grameen Solutions Limited (GSL) is the flagship technology company
of the Grameen family of organizations founded in 1999 by Dr. Muhammad Yunus, founder of
Grameen Bank and recipient of 2006 Nobel Peace Prize. “Grameen
Solutions” literally means solutions for the villages. GSL offers Software Solutions, System
Solutions,Business Process Outsourcing, Mobile Application, Social Business Solutions,
Graphics and Animation, Search Engine Optimization, Offshore Staff Augmentation, and
Emerging Market Technology at competitive offshore price points.

h) Grameen USA:- Grameen America is a microfinance organization with a mission to

alleviate poverty through entrepreneurship. Grameen America provides loans, savings programs,
credit establishment and other financial services to the working poor, especially women, in the
United States.

i) Grameen Byabosa Bikash:- Grameen Byabosa Bikash (GBB) or Grameen Business

Promotion and Services was established in 1994 as a social business and not for-profit
organization to provide supplementary services on top of microcredit
for-profit organization to provide supplementary services on top of microcredit to rural
entrepreneurs dealing in products like vegetables, livestock or handicrafts to provide experience,
skill and knowledge
j) Grameen Kalyan (Welfare):-GRAMEEN KALYAN is a not for profit Company
established in 1996 under Bangladesh Companies Act, 1994; founded by Nobel Laureate
Professor Muhammad Yunus, the founder of Grameen Bank. It is also registered under
Bangladesh Foreign Donation (Voluntary Activities) RegulationOrdinance, 1978. Professor
Muhammad Yunus is the Chairman of Grameen Kalyan

(GK). The idea behind setting up of Grameen Kalyan (Kalyan means wellbeing) was: (a) to
undertake & support sustainable programs to improve the livelihood of the people living in rural
area; (b) to contribute minimizing socio-economic and health inequalities between rural and
urban; and (c) to provide financial support for the wellbeing of Grameen Bank's borrowers,
employees and their family members.

k) Grameen Danone Foods:- Grameen Danone Foods was launched in 2006 as a joint
venture between Grameen Bank and the French food company Groupe Danone. Grameen
Danone's first product is a fortified yoghurt, branded Shoktidoi, which is designed to provide
children with many of the key nutrients that are typically missing from their diet in rural
Bangladesh. A crucial aspect of the joint venture is the overarching business goal: although
Grameen Danone Foods is a profit-making company, social impact, rather than financial profit,
is the number one measure of success. This is the overall idea about the subsidiaries of Grameen
Bank.

3.14. Corporate Information of Grameen Bank:-

Corporate information of an organization indicates the address of an organization, legal status of
the organization, the employer and numbers of employees working in that organization, their
designations, and date of inauguration of that organization.

Hence Grameen Bank is also a formal organization, it has also a separate corporate identity,
separate corporate structure as well as separate address. The whole corporate information about
the Grameen Bank is mentioned below in details-
 Chapter-4:- Recruitment System of Grameen

4.1.Recruitment process of Grameen Bank:

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

4.2.Recruitment policy of Grameen Bank:

To achieve the organizational goal effectively Grameen Bank top management has develop a
“Recruitment policy”. In accordance with Recruitment policy there have some guidelines. These
policies help Grameen Bank to conduct the whole recruitment process soundly. The guidelines of
policy are as follows:

• Ensure the right people in the right place.

• Combination of skills and resources is a must.
• No discrimination against the applicant on the basis of sex, color, region, race, age,
national origin or any other factor.
• Company’s policy is always loyal to the local law .
• Who is below 18 years of age can be hired as an employee for Grameen Bank on
regular, contract or temporary status.
• Function a heads determines suitable qualification for any post.
• Absolution confidentiality in Human Resorce Recruitment policy must maintain.
4.3.Sources of recruitmentof Grameen Bank:
Grameen Bank usually two types of recruitment sources. There are internal sources and
External sources.

Figure:- Sources of Recruitment of Grameen Bank

a )Internal sources:
Firstly employees can be recruited from the internal source. Management is usually preferred to
recruit Known and experienced employees from within the organization. In the following ways
Grameen Bank recruitment from the internal source may take place with the approval of the top
level management this can be happened by following ways-
I) 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.

II) 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 organisation. A promotion does not increase the number of persons in the organisation. 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.

III) References of the Employees:-

The present employees of Grameen Bank are informed about likely vacant positions. The
employees recommend their relations or persons intimately known to them. Management is
relieved of looking out prospective candidates.

b) External sources:-

External recruitment is the assessment of an available pool of job candidates, other than existing
staff, to see if there are any sufficiently skilled or qualified to fill and perform existing job
vacancies. It is the process of searching outside of the current employee pool to fill open
positions in an organization. Grameen Bank also takes help from various external sources for
employee recruitment. They are as follows-
I) Advertisement:-
Grameen Bank advertises vacancies through newspaper, trade journals &magazines. The content
of advertisement & media through which advertisement is to be given is decided by international
program department. It is convienient & economical method.
II) Casual Callers:-

On occassions people drop in their Curriculum Vitae without any announcement of vacancy
tofind out if jobs are available. A waiting list of such visitors may be prepared & they may
bescreened to fill the vacancies whenever they arise.

III) Educational Institutions:-

School, colleges & professional institutions offer opportunities for recruiting their students.
Prospective employers of Grameen Bank verify credentials of students &conduct interview
directly, placement cells have been set up in well known educational institutions to help students
in securing suitable jobs.

IV) Management Consultants:-

Grameen Bank takes Help from management consultants to recruit technical, professional &
managerial personnel for example accountants. They specialise in middle level & top level
executive placements. They maintain data bank of persons with different qualifications & skills
& even advertise jobs on behalf their clients to recruit right type of personnel.

V) Recommendations:-

Friends & relative of present employees of Grameen Bank are also good source of recruitment.
Grameen Bank prefers such candidates as they generally stand surety for new recruits and their
background is partly known & type of preliminary screening take place.

VI) Telecasting:-
The practice of telecasting of vacant posts over television is gaining importance these days.
Special programmes like ‘Job Watch’, ‘Youth Pulse’, ‘Employment News’ etc, over television
have become quite popular in recruitment for various types of jobs. The use of television as a
source of recruitment is less as compared toother sources because it is an expensive medium.
Grameen Bank also takes help of this type of source but it is very rare case at Grameen Bank.

VII) Central application file:-

A file is maintained of past applicants of Grameen Bank who were not selected earlier, in case of
immediate requirements such candidates can also be contacted for recruitment in Grameen Bank.

VIII) Advertisement in website:-

Grameen Bank provides circular in its personal website for recruitment. It is the best case of
Grameen Bank for recruitment in the era of information & communication technology.

IX) Public Employment Agencies:-

Sometimes Grameen Bank takes help from various public employment agencies for the purpose
of employee recruitment. The main function of these agencies is closely tied to unemployment
benefits . The benefits in some states are given only to individuals who are registered with their
state employment agency. Public employment exchanges are regarded as good source of
recruitment for unskilled, skilled, or semiskilled jobs. The job seekers get their names registered
with employment exchanges managed and operated by the Central and state Governments. The
employer of Grameen Bank notifies the vacancies to be filled in by them to such exchanges and
the exchanges refer the names of prospective candidates to them.
X) Head-hunting:-
The employers of Grameen Bank search agencies, which are also known as head -hunters. When
a person of particular talent or rare expertise IS required, the head hunters search out somebody
already in employment and induce him to change jobs. Although this practice is considered
unethical; however it is generally accepted that it may be the only option open where a particular
type of expertise is required. Those who employ head-hunters have to pay heavy charges but
these are usually justified in the light of the result achieved.
XI) Walk-ins, write-ins and talk-ins:
Walk-ins are job seekers who arrive at Grameen Bank in search of a job. Write-ins are those who
send a written inquiry. Both groups normally are asked to complete anapplication blank to
determine their interests and abilities. Usable applications are kept in an active tile until a
suitable opening occurs or until an application is too old to be considered valid, usually six
months. Talk-ins is becoming popular now-a-days, job aspirants are required to meet the
recruiter (on an appropriated date) for detailed talks. No application is required to be submitted
to the recruiter.

4.4 Steps of Recruitment at Grameen Bank:

Grameen Bank follows a formal organizational recruitment philosophy. All of the recruitment
process of Grameen Bank is performed by the administration department of Grameen Bank
hence it has no any specific human resource department. Though it is a financial institution as
well as a bank, Grameen Bank follows a different type of recruitment process which is totally
different from the recruitment process of other bank, financial organizations & non-government
organizations of Bangladesh. The recruitment process of Grameen Bank is very much formal and
time consuming. So Grameen bank adopts a recruitment process which is totally different. This
includes four consecutive steps.The four steps followed by Grameen Bank at the time of
employee recruitment process which are mentioned below-

1) Demand collection from different zones

2) Approval of the Administration Department
3) Circular system
4) C.V Collection
 Figure 01: Steps of the Recruitment process of Grameen Bank.

From the above graph, we can see the recruitment process of Grameen Bank. These steps are
done consecutively by the administration department of Grameen Bank to fulfill the total
recruitment process and bring all the applicants who are keen to apply here and who have applied
in the Grameen Bank in search for job here. In fact recruitment process is a positive approach
because no candidates are disqualified here. Here Grameen Bank encourages the candidates to
apply here.
These steps are represented in details below-
I) Demand collection from different zones:-
This is the first stage of recruitment process followed by Grameen Bank. At this stage of the
recruitment process, Grameen Bank gathers information from their 40 Zones about vacant posts
created from promotion, demotion, retirement & other issues etc. Vacant posts can also be
created from launching new branches.
II) Approval of the Administration Department:-
After collecting the information, everything is sent to the Administration Department for the
approval. No recruitment is allowed without prior permission of the administration department of
Grameen Bank. So it is required to send all the collected information to the administration
department of Grameen Bank. Then the administration department Of Grameen Bank takes the
necessary steps to recruit the employees.
III) Circular system:-
After the approval of the administration department Grameen Bank gives the circular. Grameen
Bank generally gives their circular through different Media like, the Daily Ittefaq, the Daily
Prothom Alo, the Daily Observer, and their formal and official website-
http://www.grameen.com/
IV) C.V. Collection:-
After giving circular through various media& their official websites, Grameen Bank collects the
Curriculum Vitae from the interested applicants who want to apply at Grameen Bank for
recruitment.
4.5 Selection process of Grameen Bank:
Selection is the second steps of Recruitment and Selection process. Selection is the process of
choosing the best one among the number of applicant’s management typically followed a
standard pattern, beginning with an initial screening, interview, presentation and concluding with
the final employment decision. The selection process of Grameen Bank are divided into two
parts. They are as follows-

4.5.1 Measures taken at the time of employee selection:-

Grameen Bank takes some steps just after the completion of recruitment process & at the time of
employee selection process. The selection process of Grameen Bank is very much formal and
time consuming. Because more and more applicants apply for the search of job at this bank.
However Grameen Bank follows some systematic steps at the employee selection process. these
steps are mentioned below-
1) C.V. Evaluation and shortlist
2) Conducting written test
3) Primary Selection
4) Conducting viva test
5) Thinking About The Other factors
6) Final selection
The part of the selection process includes following steps which are now represented graphically
below:-

Figure- Steps taken at the time of employee selection

Here we can see the steps taken by Grameen Bank at the time of selection of the employees of
its. Now these steps are described graphically as follows to see that how Grameen Bank
completes the selection process of its employees:-
I) C.V Evaluation and shortlist:-
After having Curriculum Vitae from numerous interested candidates, this bank evaluates
Curriculum Vitae and makes a short list of initially selected employee.

Generally Grameen Bank cancels a Curriculum Vitae on the basis of two criteria. One is
incompletion which means the Curriculum Vitae lacks some information for an example result is
given but the passing year is not given. Another is the qualities of the candidate is not enough
according to the requirements of circular.

II) Conducting written test:-

After evaluating Curriculum Vitae and selecting the initial candidates, Grameen Bank takes
written test. Generally the written test contains following topics:

a) Information Technology:-

Here, the knowledge about information technology of a candidate are tested. This section also
focuses the computer knowledge of a candidate. it is very important for a candidate for having
the clear knowledge about computer & information technology because nowadays all of the
functions of a bank are conducted by computer.

b) General Knowledge:-
General Knowledge section includes Bangladesh affairs, various international affairs, & recent
issues & events about Bangladesh & globe etc.

c) Basic English:-
In this section, a candidate’s skills about writing, speaking, and hearing English are tested
because many foreign delegates come to Grameen Bank for various purpose and employees have
to deals with the foreign delegates. So English language skill is very important for a candidate.
d) Sociology:-

Here a candidate’s knowledge about various social aspects are tested. Because the employees of
Grameen Bank sometimes need to involve in different social activities for the welfare of the
members of Grameen Bank.

The candidate obtaining minimum 60% marks is qualified for the next test.

III) Primary Selection:-

After taking written tests Grameen Bank sorts out some candidates who do excellent in written
test. Generally the obtained marks of the test and prepare a short list. The candidates who are top
in the list are selected initially.

IV) Conducting viva test:-

After primary selection, the candidates are asked for viva test. This test is taken in two ways. For
recruiting officers Grameen Bank takes viva test in the head office and for recruiting non-officer
employees Grameen Bank takes viva test in its respective zones. The things which are given
priority are given below –

a) Better performance in written test:-

A candidate needs to perform better in the written test otherwise there is a chance of becoming
cancelled in viva test.
b) Skill of communicating:-

A candidate selected for viva test needs to have skill of communicating because he/she will be
required for communicating with the members of the Grameen Bank and various foreign
delegates who come to Grameen Bank many times.
c)Aptitude:-

An aptitude is a component of a competence to do a certain kind of work at a certain level.

Outstanding aptitude can be considered as "talent".An aptitudes may be physical ormental.
Aptitude is inborn potential to do certain kinds of work whether developed or undeveloped.
Ability is developed knowledge, understanding, learned or acquired abilities (skills) or attitude.
The innate nature of aptitude is in contrast to skills and achievement, which represent knowledge
or ability that is gained through learning. Grameen Bank focuses on this quality of its employees
by this ability, employees can solve any sort of serious problem.

d) Personality:-
Personality refers to individual differences in characteristic patterns of thinking, feeling and
behaving. The study of personality focuses on two broad areas: One is understanding individual
differences in particular personality characteristics, such as sociability or irritability. The other is
understanding how the various parts of a person come together as a whole. Grameen Bank
focuses on this because an employee with great personality can easily cop with the situation and
also can attract to the members and the employees of Grameen Bank.

e) Intelligence:-

Intelligence has been defined in many different ways including as one's capacity for logic,
understanding, self-awareness, learning, emotional knowledge, planning, creativity and problem
solving. It can be more generally described as the ability toperceive information, and to retain it
as knowledge to be applied towards adaptive behaviors within an environment or context.
Grameen Bank emphasizes on it because an intelligent employee is an asset of the Grameen
Bank and he/she will never do anything which is harmful for the bank and also for the state.

V)Thinking About The Other factors:-

Grameen Bank focuses on the following factors at the time of selection process especially –
a) Geographical Location:-
Geographical location plays a very important role at the time of selection of an employee of
Grameen Bank. Because Grameen Bank is the bank only for the poor people and it has no branch
inside Dhaka. All of the branches of Grameen Bank are at the rural area of Bangladesh. So a
candidate needs to work at branch office of Grameen Bank at rural area. In this case
geographical location is a very crucial factor of at the time of selection process. Because by this
way Grameen Bank can know where an employee would sent sent.

b) Excessive Academic Results:-

Grameen Bank also focuses on the various types of excessive academic result just like Chartered
Accountancy(CA) which is provided by the Institute of Chartered Accountants of
Bangladesh(ICAB), Cost & Management Accountancy(CMA) which is provided by the Institute
of Cost and Management Accountants of Bangladesh(ICMAB), Chartered Secretaryship(CS)
which isprovided by the Institute of Chartered Secretaries of Bangladesh(ICSB), Masters in
Bank Management(MBM) which is provided by the Bangladesh Institute of Bank
Management(BIBM) of a candidate at the time of employee selection process. Although it is not
essential for a candidate of having these types of professional degrees to be an employee of
Grameen Bank but a candidate who has these types of one professional degree, can get special
preferences for the final selection as an employee of Grameen Bank.
c) Experience:-
Candidates who have previous experience of working another organization specially in banks
and financial institutions, can get special preference for the final selection because Grameen
Bank believes that an experienced person know more and more that an unexperienced or a new
person. So Grameen Bank considers the experience of a candidate carefully at the time of final
selection.
VI) Final selection:-
Among the primarily selected candidates, who are successfully passed in viva voce, Grameen
Bank makes a merit list(panel) of those candidates according to the need of Grameen Bank.
Grameen Bank also makes a waiting list of the rest candidates. And thus Grameen Bank selects
the candidates finally.
4.5.2 Measures taken after selection:-

After the completion of process taken at the time of selection of employees, Grameen Bank
follows some of the steps after the selection of employees which are as follows:-

I) Appointment letter:-
After selecting finally, Grameen Bank issues appointment letters to candidates on the basis of its
demand.
II) Training:-
Grameen Bank has its own distinctive training program. The training period of Grameen Bank is
one year. Within this period, Grameen Bank trains the selected candidates practically and takes a
seven-day training class. It takes evaluation tests for three times in the training period. If any
candidate fails two times he/she is considered unable of doing this job. After passing the three
tests a candidate has to give a final exam to their appointed zonal officers. Training is also
essential for the employees of Grameen Bank because of facing various adverse situation in the
workplace and branch office.

III) Confirmation of the job:-

Grameen Bank gives the letter of confirmation to the selected candidates after the training period
on the basis of performance appraisal of training program.
IV) Orientation Program:-
After delivering the confirmation letter and before joining, Grameen Bank organizes an
orientation program for its employees. The aim of this program is to introduce the new
employees with the old employees.
Thus Grameen Bank com
 Chapter-5:- Findings, Recommendations and
Conclusion
5.1. Findings of the report:-

When I was involved as an internee in Grameen Bank, I have observed some major things in its
recruitment & selection process. The major findings in the recruitment and selection process of
the Grameen Bank are justified in my view are stated below-

• Grameen Bank use promotion, demotion, and transfer sources in the internal recruitment;
• Grameen Bank uses both test of selection an employee;
• The recruitment and selection program of Grameen Bank is systematic;
• Majority of the respondents said that there is interference for internal recruitment;
• According to the opinion of the respondents board of directors and Human Resources
Division of Grameen Bank interfere for internal recruitment;
• Most of the respondents said that the employees are selected according to the job description
and job specification;
• Grameen Bank uses appropriate tools and techniques for selecting employees;
• The employees of Grameen Bank are satisfied with the recruitment and selection program.
• The recruitment and selection process of the organization is follows formal mode of
recruitment system.
• The media for attracting candidates used by the bank are suitable.
5.2. Recommendations of the report:-

As an internee it is very difficult for me to give any recommendation with little working
experience but I have tried my best to give best recommendations to improve the Recruitment
and Selection process of Grameen Bank Limited.

• As most of the employees agreed that the recruitment and selection process of Grameen
Bank generates hassle to the applicants so the bank should take proper steps to minimize
hassle of the applicants toget best employees for the organization.

• Recruitment and selection process of Grameen Bank is lengthy as most of the employees
agreed that. So the bank should take proper steps to shorten the length of the process by
shortening the training phase for the betterment of the organization.

• Most of the employees agreed that the recruitment and selection process of the bank
should be improved. By following the recommendations mentioned below the process of
the bank can be improved-

• Responsibility of Human Resource Division should be increased in order to reduce

recruitment cost, biases, and to bring efficiency and effectiveness in the recruitment
process.

• The information technology department should play a string part in improving and
upgrading the computer system of the organization and should assist the entire
department as well as the HRD in building the correct software to keep the records.
• The bank may usemore external sources of recruitment, such as- campus recruiting, job
fairs, and employment agencies etc. to get a wider range of options for selection.

• Grameen Bank may change some of its recruitment policy to save time.

• Grameen Bank may open its own human resource department for the purpose of easing
the recruitment and selection process because recruitment and selection process is the
main function of human resource management of any types of organization.
5.3. Conclusion:-

From the above discussed human resource policies and their recommended changes, Grameen
Bank achieves the dream they had been hoping for. A recruitment policy in Grameen Bank
creates unnecessary delay in the progress. This requires a sharp business focus from human
resource management and the delivery of high quality human resource systems that are
integrated into the organization strategy & operations. The study "Recruitment and Selection
procedure of Grameen Bank under human resource revealed that employees are the most
valuable resources for the progress of the organization. For the development of these valuable
resources there are many factors involved. In this regard "Recruitment and Selection Procedure"
play the most important role. To increase the productivity of an organization effective &
dynamic recruitment and selection procedure is essential. Grameen Bank practices a progressive
recruitment and selection procedures human resource officers of Grameen Bankare expected to
work beyond the boundaries of contracts and policies to contribute directly to the operation and
success of the business.