Dubai Islamic Bank (DIB) is the first Islamic bank in the world, or the pioneer in Islamic banking. It was formed in 1975. Now a day, it is providing a banking system which is aligned with the traditional Islamic values.
The vision of DIB is to retain its leading position in Islamic Banking and spread Islamic Banking. The values of DIB are aligned with Islamic values, such as; trust, innovation and etc. And its objective is to maximize the incentives of stakeholders.
In this report, we will examine the role of HR department of DIB in followings perspectives;
‘ Recruiting
‘ Selecting and Interviewing
‘ Orientation
‘ Compensation Benefits
‘ Career Development
‘ Appraisal
‘ Training
‘
HR PROCESS:
The HR processes or matters that are focused in this report are; Recruiting, Selecting and Interviewing, Orientation, Compensation Benefits, Career Development, Appraisal, And Training.
Recruiting:
In the light of the answer of questionnaire, DIB strives to be an organization who does not discriminate among the workforce, and at the same time they try their best to have equal employment opportunity for all. The sources that they use in recruiting are; employment agencies, internet, recruitment drives, and they belief that these are some of the very authentic or result oriented ways to recruit, the candidate of their choice. They further elaborate that employment agencies are used to recruit for upper level management; internet is used to recruit for middle level management, while for lower level managers, recruitment drives are conducted.
They also inform that whenever there are vacancies in the organization so 80% of the total recruitments are done from the external source of labor and the rest from internal source.
Selecting and interviewing:
At this stage they conduct test and interviews from the candidates. The basic components of test includes; English, Mathematics, GK, and Position related questions. And in interviews, for upper and middle level managers there is panel interview, and for lower level managers there is individual interview.
Orientation:
They conduct orientation session for their new employees. In which they give presentations to their new employees regarding different norms of the organization. And they think that it is an important duty of the management.
Compensation Benefits:
They explain that there are various things that set the salary, which includes; policy standards, individual education, skills, experience and etc. They also provide medical facilities and bonuses as per their performances.
Career development:
They mention that they ensure good career development of their employees by proper counseling. They consider personal goal of employees through performance development plans. As per their policy, for promotion two things are required the recommendation of the line manager and the individual performance chart. They prepare successors for the crucial jobs. They belief that job rotation is an excellent concept to enhance the abilities and skills of an employee.
Appraisals:
In DIB appraisals are taken place once in a year through circulation of review forms. In this appraisals one’s individual yearly goals targets are evaluated. In this appraisal one’s KPI (Key Performance Indicator) and his or her line comments are taken into consideration. And the appraisals are reflected in one’s performance bonus and increments.
Training:
In DIB Training need analysis is conducted, where the HR officials observe that who need training and of what sort. And as the need of training is identified, then the officials train them within the organization or send them outside the organization for the sake of training.
‘
PROBLEMS:
Recruiting:
1. The HR officials do not use news paper for recruitment.
2. They do not announce of their official website.
3. For vacant position, the recruitment of internal source of labor is just 20%, which may discourage the existing human resource of an organization. And they may think that organization is not loyal to them.
4. For vacant position, the recruitment of external source of labor is 80%, which is quite large portion of the total recruitments.
Selecting and interviewing:
1. They do not use images in their initial test to study the inner voice or thinking pattern of their candidates.
2. They do not study the emotional intelligence of the candidate, while interviewing.
Orientation:
1. They do not orient their new employees with the banking industry.
2. They do not invite families in orientation session.
Compensation benefits:
1. While setting the salary structure, they do not consider the family size, no. of dependents and marital status of an employee.
2. Although they give annual performance bonus, but they do not give some incentives on Eid ul Fitar & Eid ul azah as well, as per market trend.
Career development:
1. They do not use educational bonds.
Appraisals:
1. Although they conduct the appraisal annually, but employees may change the working pattern when they come to know that the appraisals are going on. So the authenticity of those appraisals can be challenged.
2. In the appraisal, they do not study the personal goals of the employee.
Training:
1. Although they conduct training need analysis, but they do not take the volunteer feedback from employees that who need training?
‘
SOLUTION:
Recruitment:
1. HR officials should also use news paper advertisement for recruiting; it will give an opportunity to carter the mass public, from all the sectors of Pakistan.
2. And they also announce on their official website. Which may enhance the their potential number of customers.
3. For vacant position, the recruitment of internal source of labor is just 20%, which may discourage the existing human resource of an organization. And they may think that organization is not loyal to them. And it gives more value to others over us, which may bring low efficiency in their work. Thus the officials should increase the weight-age of internal labor source in recruiting.
4. For vacant position, the recruitment of external source of labor is 80%, which is quite large portion of the total recruitments, which may distort the corporate culture. So in order to retain all these things, organization should decrease the weight-age of external labor source in recruiting.
Selecting and interviewing:
1. They should add at least one more thing in their test that is images through which they can examine the inner thought of the candidates, his or her personality traits and ability to deal with issues.
2. They should also study the emotional intelligence of the candidate, while interviewing, by having an experienced psychologist is their team. Through one’s behavior and attitude can be examined.
Orientation:
1. They do not orient their new employees with the banking industry, which is a problem. Because, if they do not know about the competition in market, so how they can be more competitive.
2. They should invite families in their orientation session, and give them briefing about their relative’s work and also take their families in confidence.
Compensation benefits:
1. While setting the salary structure, they also consider the family size, no. of dependents and marital status of an employee, which will give the concept of caring in the mind of an employee. And in result he or she motivates.
2. Although they give annual performance bonus, but they should also give some incentives on Eid ul Fitar & Eid ul azah as well, as per market trend. Because in Pakistan most of the banks give bonuses of these occasions, so at that point of time the employees of DIB may feel inferior. So the bank should give at least some incentives to their employees on these occasions.
Career development:
1. Although they provide need base educational loans to their employees, but they do not use educational bonds. By using educational bonds DIB can ensure good career growth of their employees and good organizational growth.
Appraisals:
1. Although they conduct the appraisal annually, but they should also conduct a very light appraise of their employees on quarterly or monthly basis, which will give sense to the employees that management is looking towards them, it’s not just as annual process.
2. In the appraisal, they do not study the personal goals of the employees, which may give the sense of selfishness to the employees mind. So the organization should also study the personal goals of their employees.
Training:
1. Although they conduct training need analysis, but they do not take the volunteer feedback from employees that, who need training? They should take volunteer feedback from the employees so they will feel that they are listened and it will be good for organization as well. But the decision should take on the rational grounds, not only on the choices of employees.
‘
TRAINING:
Training has a very significant role in any on-going industry, where things are getting change at a faster speed, not just internationally, but also domestically.
DIB trains their employees within the organization and outside the organization. For training within the organization, they have experts who give them on-the-job training. There line managers who provide complete assistance or training to their subordinates to accomplish their assignments on time. Most of the times DIB, train their employees with the organization. Like as they hire an employee at the very initial stage who has no experience, so they give them the designation of BTO (Branch trainee operations) and train him or her for at least 6 months. And that’s on-the-job training.
More over the officials of HR with collaboration of other concerned departments, they conduct different sort of conference within the organizations, which help employees to furnish their abilities and skills that are required for today’s competitive environment. And they also organize workshops and seminars within the organization and outside the organization, where not only the employees of DIB but the employees of other banks are invited. And the ultimate objective of this practice is to explore some new dimension of efficiency in Islamic banking system through collaborative learning and training.
As well as training inside the organization, DIB also send their employees outside the organization for the purpose of training, some of the organizations are; State Bank of Pakistan, Institute of Bankers of Pakistan, Islamic Banking Institutes and etc.