Origin of the Report

BRAC Bangladesh is a national Non-Government organization which is one of the worlds largest Non-Governmental Development Organizations. Learning Human Resource Management (MGT301) is a must for a BBA student. This course has been designed with different HR policies, management theories and applications of those theories in management activities. As a requirement of this course, students have to prepare a term paper in a group. In line with the requirements of this course, our group (Group 1) wants to prepare the term paper on the Recruitment, Selection and Compensation Package of BRAC.

Objectives of the Study General objective General Objective of the study is to know the recruitment and selection procedure of a BRAC NGO.

Specific Objective To find out the recruitment process of BRAC To identify the selection system of BRAC To compare the recruitment process of BRAC with other NGOs To illustrate the limitations of the existing recruitment & selection procedure of BRAC To recommend plan of action on the basis of the findings. To find out about different compensation packages offered by BRAC.

Scope of the Study The Scope of the Study limits itself in the Recruitment, Selection and Compensation by BRAC. This study analyses the strengths and weakness of BRACs HR policy. The study helps to come to a conclusion about the Recruitment, Selection and Compensation by the worlds largest NGO.

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Methodology Interview method was used as the technique for date collection. However, to prepare the report we used both the primary and secondary source of Information.

Primary Source For the primary source of the data, we conducted interviews with HR personnel of BRAC.

Secondary Source For Secondary Information, we collected data from websites, journals, and research papers.

Limitations

Time limitation is a major limitation for preparing report on such a broad topic. We cannot analyze the information of other identical organization. It would have been easier if we could have visited few other similar organizations or NGOs. BRAC officials did not want to share most of the confidential information related to Human Resources, they did not want to disclose any information from which competitors may gain the competitive advantage and internet database also includes password for only employees.

Business Card Sowrav Kumar Saha Senior HR Officer Recruitment Selection and Placement (RS&P) BRAC Human Resource Division BRAC CENTRE 75, MOHAKHALI, DHAKA - 1212 Tel: 88-02-9881265, Email - recruitment@brac.net

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1. Background

BRAC Bangladesh is a national non-Government organization which is one of the

worlds largest Non-Governmental Development Organizations, BRAC, was initiated in 1972 by Mr. Fazle Hasan Abed as a short-term relief and rehabilitation project following the liberation war. In the wake of pervasive poverty and lack of organized effort to battle the problems of war-ravaged economy, BRAC subsequently had to scale-up its pilot projects towards long-term issue of poverty alleviation and empowerment of the poor. Poor rural women and children are at the center of all BRACs activities. 1.1. BRAC Its Journey

BRAC, a national private development organization, set up in 1972 by Mr. Fazle Hasan Abed, began as a relief organization focused on resettling the refugees returning from India after the War of Independence in 1971. This task over, BRAC redirected its focus to the issue of poverty alleviation and empowerment of the poor, especially women, in Bangladesh's rural areas. From its modest birth in 1972, it is now one of the world's largest national NGOs, diverse in its operations with over 28,000 regular staff and 34,000 part-time teachers, working in 61,924 villages in all 64 districts of Bangladesh. BRAC has progressed by learning from experience and through a responsive and inductive process. Adjusting its strategy to prevailing circumstances, it does not pursue any rigid development model. From the mid-70s to early 80s, our holistic and flexible approach to rural development became the internationally accepted standard. It has been called upon to assist countries in Africa, Asia, and most recently in war ravaged Afghanistan. BRAC diagnoses poverty in human terms. Women with social, cultural, technological, and structural constraints have been able to transform themselves as contributors not only to their families' well-being, but also to national production and development by increasing their access to economic and social resources with BRAC's assistance. Currently, BRAC promotes income generation and social development for the poor, mostly landless rural people of Bangladesh through micro credit, health, education, and training programs.

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1.2.

Mission Statement

Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programs that enable women and men to realize their potential. 1.3. Core Programs of BRAC

BRAC Development Program BRAC Education Program BRAC Health Program Social Development Program Human Rights & Legal Services 1.4. Other Major Initiatives BRAC University BRAC University was inaugurated in 2001 to foster national development by creating a Centre of excellence for higher education that is responsive to society's needs. BRAC Bank BRAC Bank is a full-service commercial bank focused on providing financial services to small and medium enterprises. BRAC International BRAC Expands Its Operation worldwide. Presently, it is actively operating in Afghanistan, Sri Lanka, Tanzania, Uganda, and Southern Sudan. BRAC Enterprises BRAC Enterprise includes: BRAC Agro and Salt Industries Aarong BRAC Dairy and Food Project BRAC Printing Pack BRAC Tea Estates etc.

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Table 1 Staff Information of BRAC as of 31st June, 2011

Staff Category Regular BEP Teacher Shastho Kormi Total

Male 38339 352

Female 9090 39789 7147

Total 47429 40141 7147 94717

Male % 81 % 01% 00% 32%

Female % 19 % 99% 100% 68%

38691

56026

Table 2 Program wise Number of Staff

Program Name Micro Finance Borga Chashi PSE WASH DECC BEP BHP SD HRLS TUP BRAC Enterprise BRAC International

Male 19097 915 672 1818 55 3582 1959 337 305 2545 1256 532

Female 2362 42 51 293 2 2105 2064 176 74 625 85 14

Total 21459 957 723 2111 57 5687 4023 513 379 3170 1341 546

% of Male 89 96 93 86 96 63 49 66 80 80 94 97

% of Female 11 4 7 14 4 37 51 34 20 20 6 3

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2. Recruitment Process

Recruiting is important process for any organization because through it the bestqualified applicants must be found to fill vacancies. Recruitment is the process of finding and attracting qualified or suitable applicants to fill vacancies. The methods and procedures used to acquire an understanding about any job is called job analysis. That would be discussed next. There are mainly two sources of recruitment: internal and external.

2.1.

Planning and Recruitment

BRAC recruits people both from inside and outside of the NGO; according to the post and people they need. The NGO follows the best practice of 80/20 ratio, meaning that 80% of management population shall be home grown while 20% may be recruited externally in order to introduce new skills and new thinking.

Recruiting Within the NGO If the NGO authority thinks that the people inside the NGO are well qualified, they are offered for the job, otherwise they go for external candidates. Authority always prefers internal candidates for filling any position.

Recruiting Outside the NGO As BRAC follows 80/20 rules to recruit employee they try to look for external candidate when they fail to fill up the vacant position by any internal individual. According to the recruitment policy of the NGO the authority uses some source to recruit outside the NGO.

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Advertisement When the authority decides to hire employees they give advertisements. They give advertisement in at least two papers.

Website BRAC has its own web. They always update their web site. They give necessary information, if they want to recruit people. Interested candidate who browse the website applies for the jobs, then authority recruit qualified people from them.

Bd-jobs.com Alike their web site BRAC also gives necessary information in www.bd-job.com about any vacant position.

Educational institute BRAC takes this source as very important one. It is a very important source to fulfill their need of employees. They prefer employees from some renowned institution like BRAC University, North South University and so on.

Employee referrals It is another source for BRAC to recruit employees. Current employees referrals or recommend people for the vacant positions. BRAC also prefer these kinds of candidates. 2.2. Strength and Weakness of BRACs Recruitment Process

Strength of Recruitment Process The recruitment and selection process is transparent and fair. Outcomes of the recruitment process is satisfactory

Weakness of Recruitment and Process There is no specific job description The management should maintain more flexibility for internal staff for applying.

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Receive approved requisition from Programs

Prepare the final deployment list

Carry out the preservice training

Prepare and Publish advertisement

Taking Joining/File Handover to the appointment unit

Prepare deployment list for every selected candidate

Receive application through several sources

Recruitment File closing with reports

Briefing selected candidates for preservice training

Sort the CVs according to the criteria

Taking necessary preparation for exam

Carry out the examination, sort out results and circulate

Plan for Selection Test

Figure 1: Recruitment Flowchart at BRAC

Create Database and Inform Candidates

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2.3.

Staff Recruitment Process

The following processes will be perused in staff recruitment. The Staff will be recruited according to the Table of Authority. The approval of the Executive Director must be taken in recruiting the staff of all levels of the Head Office. For Urgent need of the program staff can be also recruited directly by the Chairman of the Executive Director. In the beginning of the year all the Programs'/Department's Head would send the requisition in the fixed form to the Head Office estimating the requirement of new staff for the whole year in their respective Department. HRD would make yearly plan to recruit staff on the basis of the received requisition request. The staff will be recruited through advertisement in the newspapers and other publicity media which suitable. Application for job is desirable on the fixed format. Interview Latter should be sent by Post/Courier minimum fifteen days selection test. The Staff selection process will be completed on the basis of success of the written, viva and pre-service examination which is applicable. The finalization of the staff recruitment must be approved by the HRD. After recruiting the staff according to the requirement of the program HRD makes a panel of the selected remaining candidates. Afterwards staff are recruited from this panel if requires. This panel remains effective for the subsequent six months. The TARC has been send the CV filled up by the newly recruited staff to the Head Office where applicable and provides deployment individually in the name of each staff mentioning the salary according to the list provided by the Head Office.

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3. Selection Process

Selection is a process of hiring suitable people for job. Right man for right job is the
main goal of selection. The selection process involves many steps such as preliminary reception of application, interviewing, test, medical test, references and final decision of hiring. 3.1. Staff Recruitment Board

Staff Recruitment Board nominated by the program and approved by the HRD with representative conduct the viva of the candidates. In order to ensure qualitative standard and program and approved by the HRD with representative conduct the viva of the candidates. If there is a relative candidate the staff has to abstain from being the member of the recruitment board. At least one of the members of the recruitment board must have to be from HRD. The question should be gender sensitive, consistent with the skill to the intended post.

3.2.

Steps in Selection Process

Hiring decision This is the first step of their selection process. When there is any vacancy in the organization, a need of employee is felt for the post by the higher authority. Then they acquire the decision of recruitment for any vacant position. They also decide how many people they need in which post. Recruitment takes place when there is New position arising out of new business direction Vacancy arising because of resignation/retirement Annual Planned Recruitment of fresh graduate

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Review for application and resumes The second step they follow is to make a review of the resumes and applications of the applicants. Then they assess those and see whether the applicants are actually eligible for the post or not. After that they go for those applicants for the next steps whose qualification meet their requirements for the job.

Selection test After the review The BRAC NGO takes selection test of the applicants. In this step they follow two different procedures. One is adopted for the fresher or new comers; another is for the experienced applicants. For the fresher or those who has no past experience for the job, they arrange a written test. Then they select people for interview who pass the test. They do not hassle about any written test for the applicants who have past experience and they are directly called for the interview.

Employee Interview The applicants, who are qualified in the previous stage, are selected for this stage. In this stage they have to face a whole day assessment program for the final selection. The interviewers assign them different assignment and practical works for the whole day. Thus interviewers can understand if the employees will be able to work in NGO smoothly or not. They also seek information about their academic achievement, personal qualities and skills.

Personal Reference and Background Check Some applicants attach some references with their applications. The NGO authority sometimes checks the references. If the NGO authority thinks that they have some confusion about the employee, then they go through the authentication process.

Final Decision This is the last part they follow for the entire selection process. At this stage they make the final decision about who will be the employees for their jobs.

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Pre-service Training Being selected primarily all the candidates will be attending the pre-service training conducted in the TARC for the final selection. From the participants the most competent 90% will be selected finally. Each of the unsuccessful candidates will be given Tk.50 honorarium per day for participating in the pre-service training. Deployment of the New Staff The regular staff will have to be willing to work in any place of Bangladesh or outside of Bangladesh where BRAC conduct its actions. In case of the male staff posting may be given to any district excluding the staff's own district. In case of the women and disable job seekers during the viva HRD will make a list of the chosen Thanas of the jobseekers excluding the own in accordance with their choices' priority and staff is recruited accordingly on the basis of availability. Joining of New Staff The candidate will join on the day fixed by BRAC. According to the condition of the joining letter on the day the candidate has start working and his joining is considered effective from that day. In case of the Head Office and the Field Office the staff has to join at work by 9.00 am. If a candidate joins by the next seven days of the joining date, the local authority can accept the joining. After seven days the joining can't be accepted without the Permission of the HRD. In case of joining late if the newly selected candidates apply for joining by 15 days of the fixed joining date is considered. The joining letter must be submitted on a fixed format All regular staff has to work as a beginner for a yearlong from the joining. The period of probation of any staff cannot be expanded. It is not applicable for the service staff and contractual staff.

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4. Compensation

There is no particular definition of compensation. From in depth research we have

that compensation is the benefit package for the employees that are offered by the organization, such as flexible working schedules, insurance (health, dental, eye) etc.

4.1.

Compensation Package

Its easy to think dollars per hour when thinking about compensation. Successful compensation packages, however, are more like a total rewards system, containing non-monetary, direct and indirect elements. Non-Monetary Compensation can include any benefit an employee receives from an employer or job that does not involve tangible value. This includes career and social rewards such as job security, flexible hours and opportunity for growth, praise and recognition, task enjoyment and friendships. Direct compensation is an employees base wage. It can be an annual salary, hourly wage or any performance based pay that an employee receives, such as profitsharing bonuses. Indirect Compensation is far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, childcare or housing. Employers have a wide variety of compensation elements from which to choose. By combining many of these compensation alternatives, progressive managers can create compensation packages that are as individual as the employees who receive them. The general consensus of recent studies is that pay should be tied to performance to be effective. However, with traditional farming operations, that is not easily done. Business performance can be affected by many factors over which employees have no influence, specifically weather. Successful managers must search for things employees influence and base performance objectives on these areas. Your operation may benefit from the following: tenure bonuses for longtime employees, equipment repair incentives to encourage good equipment maintenance, or bonuses for arriving to work on time. The more production information data your business has, the easier this is to accomplish. Measures such as feed conversion rates, somatic cell count or mortality can offer great sources for performance incentive.

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4.2.

Classification of Staff

The BRAC Staffs are of five types. Such as: Regular Staff Project Staff Service Staff Contract Staff Part Time Staff

Regular Staff Staff level exists. Before confirmation one is to work as apprentice for one year. After confirmation they may be brought under Provident Fund and gratuity. Also get regular bonus, commission, medical facilities, insurance facilities and merit pay.

Project Staff Recruit according to the duration of the project for the project-period. Staffs are not allowed to transfer outside the project. The project staff will enjoy benefit according to the projects procedure and condition of the appointment letter. However merit pay is mandatory for these people.

Service Staff Service staffs (for example-Electrician, Security guard, Caretaker Liftman and the grade-comprised staffs.) are under grade. Probationary period is not applicable for them. After joining they may come under Provident Fund. Moreover they get the benefit of bonus and insurance only. Sometimes they also get merit pay according to their performance.

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Contract Staff Permanence of the job depends on the duration of the contract. Benefit of the job is determined according to the contract letter. Duration of the contract is renewable. Probationary period is not applicable. The contractual staff will not get festival allowance, gratuity and Provident Fund benefits. Get earned leave like the regular staffs. Sometimes they also get the facility of merit pay.

Part Time Staff Appoint on hourly or daily basis. Other benefits of the job except the daily allowance are not applicable. Duration of the job will not exceed 11 months. However they have the facility to renew the time of their job based on performance.

COMPENSATION FINANCIAL COMPENSATION NON-FINANCIAL COMPENSATION INSURANCE DIRECT PAY VACATION

SALARY
HOLIDAY INCENTIVES MERIT PAY BONUS GRATUITY PROVIDENT FUND
Figure 2 Compensation System

MEDICAL FACILITIES

AFTER RETAIRMENT BENEFIT

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4.3.

Types of Compensation

There are different types of compensation benefit. Mainly 2 types compensation, one is Financial and another one is Non- financial: Financial Benefits Pay for performance (incentive system) reward employee performance on the basis of three assumptions Individual employee and work teams differ in how much it contribute to the firm not only in what they do but also in how they do it. Firms overall performance depends to a large degree on the performance of individuals and groups within in the firms. To attract, retain and motivate performers and to be fair to all employees.

Direct Pay

Salary The amount of money an employee gets monthly for his or her job. It is mandatory to give every employee.HR of BRAC offers different salary packages for its employees. The amount of salary depends on both seniority and performance of employees. Thus two employees in the same position can get different salaries and incentives for their different performance. These variations occur only in the case on senior employees.

Increment BRAC provides increment to their employee that depends on their performance and sometimes seniority. When an employee shows exceptional performance, he is offered an increment. However sometimes BRAC cannot give promotion to its employees in time and then they offered them an increment in their salary.

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Incentives

Merit Pay Any salary increase awarded based in his or her individual performance. It normally given once in a year or it may be twice or thrice.

Bonus A financial incentive that is given at a onetime basis and does not raise the employees base pay permanently. BRAC offers its employees both regular bonuses. Regular bonuses are given in two Eid as festival bonus. For Hindu employee they give festival bonus only in Durga Puja. Beside this BRAC offers bonuses for good performance and as goal completion reward.

After Retirement Benefits

Provident Fund Provident fund is a benefit in which employees are paid after doing a minimum service for the company. Here they will get a certain amount of money like 3 or 5 percent from his own basic salary and from the companys stock.

Gratuity Gratuity is another financial benefit that is offered to the employees after retirement. If an employee works for certain number of year (the number varies from company to company) he gets a monetary benefit of one basic salary for each year he or she worked in the company.

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5. Recommendations

We have the following recommendations for BRAC:

Introduce Recruitment Software Head hunting for senior positions. Professional Institutions, HR Associations support should be taken as personal source. For staff development more training need to be introduced by management. The staff should get some more opportunities for higher education. Training & educational activities may continue to reduce the pressure on employees regarding their skill & other necessary conditions for performing their assigned job. The management should take some more initiative in staff development. For that purpose the budget for staff development should be revised & increased. Recruit more HR staffs to provide prompt service & meeting all level of staffs physically to hear their problems & give feedback. The compliance audit team should be more strongly constituted & organized to take accurate feedback & ensure the right practice of the human resource policy & procedure. Specific job profile needs to be made in terms of principal tasks & skills needed. Hire Agencies to comb the market & provide short listed resumes for the higher positions. Panel Interview

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6. Conclusion

Selection

of deserving and competent staff is always a crucial job for an

organization. It has to consider the required level of skills/technical abilities, competencies and flexibilities of an employee. BRAC is an organization where different types of development interventions are carried out. That is why the process of selection is vast and more complicated. Every year a massive number of

employees are recruited by Recruitment, Selection & Placement Section of HRD for fulfilling the growing number of staff demand from different programs and projects. Through successful recruitment, effective, value driven and competent staff can be hired, who will perform to their best abilities. They can work towards the success and sustainability of the organization by means of adherence and dedication to achieve the goals and objectives. BRAC believes in Equal Employment Opportunity in any recruitment & always gives preference to the underprivileged group of people in the society.

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7. Glossary SME: Small and Medium Enterprises are companies whose headcount or turnover falls below certain limits. Head Hunters: An informal name for an employment recriuiter, sometimes referred to as executive search. Human Resource Management: HRM is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. Panel Interview: In this type of interview the candidate is interviewed by a group of panelists representing the various stakeholders in the hiring process.

8. References 1. Decenzo, A, David; Robbins, P, Stephen, (1998), Personnel/ Human Resource Management, pp-117-177. 2. Huq S.A., Personnel/Human Resource Management (First Edition)- 1981 3. Fisher, D, Cynthia; Schoenfeldt, F, Lyle; Shaw, B, James, (2004), Human Resource Management Biztantra, pp 234-273. 4. Nankarvis, Alan; Compton, Robert; Baird, Marian, (2002), Strategic Human Resource Management, Thomson, pp-240-293. 5. BRAC Annual Report 2010 6. Different Pulications of BRAC (Setu, Satrong) 7. Website of BRAC: www.brac.net 8. BRAC HRD:www.brachrd.org 9. Wikipedia source: en.wikipedia.org

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