Enabling Environment Of Banking Essay Online For Free - Free Essay Example

Sample details Pages: 31 Words: 9250 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Tags: Banking Essay Did you like this example? The purpose of this research was to assess the banking sector in Rwanda and its enabling environment to attract other banks within East African community. The research was carried out in Kenya Commercial Bank and Equity bank with the following research objectives; examining the nature of Rwandan banking industry, identifying the environmental factors in Rwanda that are conducive for banking sector and assessing the strategies that Rwanda banking industry has used to attract other banks within East African community. The researcher reviewed literature related to previous studies carried out in areas related to the topic giving emphasis to the nature of banking industry in Rwanda, environmental factors conducive for environment, strategies used to attract foreign banks and the banking sector in Rwanda. Don’t waste time! Our writers will create an original "Enabling Environment Of Banking Essay Online For Free" essay for you Create order The researcher used descriptive and analytical research while the study population was 126 employees and customers of the selected banks. The sample size of the research was 95 employees from the selected banks. The data collection tools were questionnaires and interview guide while analysis and interpretation of data was done using tables and figures. Data collected was analysed based on the frequencies and percentages of respondents views. The research found out that the banking sector in Rwanda is very good (60%), and 32% described it as good. Meaning that Rwandan banking sector is good enough to attract other commercial banks within East African community, the factors necessary for the attraction of foreign commercial banks within East African Community are security (20%), stable currency (16%), and nature of the banking industry (29%), a wide market (9%) and conducive environment, there is a relationship between banking environment and attraction of commercial banks in Rwa nda (96%) meaning that attraction of commercial banks and banking environment are related. The research concluded that the nature of Rwanda the nature of the banking industry in Rwanda is good enough to attract other commercial banks within East African community and has favoured the foreign commercial banks that opened up in Rwanda from east African region and the environmental factors in Rwanda that are conducive for banking sector in Rwanda included security, stable currency and nature of the banking industry, a wide market and conducive environment. The research recommended that the government of the republic of Rwanda should continue ensuring that the banking environment is conducive by continued supervision and monitoring of the sectors, controlled inflation and stabilising the currency. TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS ACRONYMS ATM : Automated Teller Machine CAMELS: Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity CAR: Capital Adequacy Ratio EAC: East African Community EDPRS: Economic Development and Poverty Reduction Strategy FDI: Foreign Direct Investment FSDP: Financial Sector Development Program GDP: Gross Domestic Product IMF: International Monetary Fund KCB: Kenya Commercial Bank MBA: Master of Business Administration NBR: National Bank of Rwanda RDB: Rwanda Development Board Rwf: Rwandese Franc USA: United States of America DEFINITIONS OF THE OPERATIONAL TERMS Bank A bank is a financial institution that accepts deposits from and extends credit facilities to customers. Banking environment Banking environment refers to the environment in which banks operate in relation to financial policies, security and government laws. Foreign banks Foreign banks refers to banks from outside countries Attraction of foreign banks Attraction of foreign banks refers to the strategies and procedures directed towards making foreign banks coming in the country to join the banking sectors. CHAPTER ONE 1.0 INTRODUCTION In this chapter the researcher presents the introduction to banking sector and the enabling environment to attract other banks. The researcher also presents the background to the study, problem statement and the objectives of the study including general and specific. The chapter further presents the research questions, scope of the study, limitations, significance and the conceptual framework. Environmental turbulence in the modern banking business has forced the banks to adopt strategic reactions for survival and continuity. Banks predominantly react by diversifying their loan portfolio or by stepping up their screening and monitoring. During a financial crisis arranging banks retain larger portions of loans and form more concentrated syndicates, reflecting an increased need to screen and monitor borrowers. During a crisis, agency problems are attenuated in syndicates that lend to repeat borrowers and that are composed by experienced arrangers (Taylor, 2008). A liberalized a nd attractive banking industry especially in developed countries coupled with an increasingly complex and dynamic business environment has created hyper-competition not only in the banking sector but in different industries (Robinson, 1991). With increased labor migration, governments, civil society, and the private sector are now faced with the prospect of attracting more worker remittances, migrant association donations, migrant capital investment, as well as trade opportunities. Governments and businesses need to ask themselves what they can do to help lower the costs of remittances and attract more money. An enabling environment is one that facilitates with ease economic interaction among players. Five factors that enable a particular economic environment are: The presence of a significant number of economic players, communication and networking efforts, readily available information about transactions, policy, business initiatives, and ventures aimed at key economic sectors and resource availability to enhance initiatives and motivate players (Arteaga Jeffus, 2007). Governments and businesses can promote initiatives that not only address cost reduction in the transfer of remittances, but also enable other elements of an economic environment that is attractive for migrant transfers of various kinds (Watson and Tony, 1998). Attracting foreign investments are one of the driving forces of the process of globalization and are a defining element of the modern-day world economy. Foreign commercial banks promote the restructuring of industry at the regional and global levels and thus ensure the integration of a national economy into the world economy more effectively than trade (Williamson, 1996). 1.1 Background to the Study Industry competition involves business firms which compete for the same customers. This means therefore that if new markets are not created the number of customers would decline with the declining profitability of the firms in the same industry. Industry environment factors directly influence a firms prospects and they include; entry barriers, competitor rivalry, availability of substitutes and the bargaining power of buyers and supplier, among others. For companies in competition against one another, the external environment constitutes the industry within which the firm operates (Taylor, 2008). Competitive strategies involve the changes in a firms strategic behaviours to assure success in transforming the future environment. They therefore, constitute a set of decisions and actions that result in the formulation and implementation plans designed to achieve a firms objectives. It is a reaction to what is happening in the environment. Equally they involve the changes in a firms strategic behaviours to assure success in transforming the future environment. Ideally, the company gains competitors customers by taking over part of the competitors market share attracting non users of the product, at the same time encouraging current customers to consume more of the product and this forms the basis for market penetration strategy (Arteaga Jeffus, 2007). Rwanda has steadily reformed its commercial laws and institutions since 2001 with support from the World Bank. Rwanda made the biggest-ever improvement in the Doing Business reform category by jumping 76 places in one year, ranking 67 out of 183 countries in the 2010 report. The financial sector is also healthier, and together this progress reflects:   Reforms have been adopted   in 7 of the 10 doing business topics, major laws were prepared and adopted, including a company law, a secured transactions law, an insolvency law, a labor law, a law establishing the commercial courts, and another estab lishing the commercial registration agency. A Doing Business unit has been set up within the Rwanda Development Board (RDB) and is effectively leading the preparation and implementation of the investment climate reform agenda through enhanced public-private dialogue. The one-stop center in the RDB is also more effective. As a result, it is now easier, faster and less expensive to do business in Rwanda; Time to start a business was cut from 14 days to three days and the number of procedures was cut to two from eight. The cost of starting a business has dropped from 109 percent to 10 percent of income per capita between 2008 and 2009, time to register a property was reduced to 60 days   from 371 days and the cost to register property dropped from 9.6 percent of property value to 0.5 percent between 2007 and 2009, time to import was reduced from 42 to 35 days, and time to export was reduced from 42 to 38 days between 2008 and 2009, fiscal administrative procedures for busines ses are being streamlined and the Value Added Tax law amended, resulting in the reduction in the number of tax payments from 34 to 26 and reduction in time to prepare, file tax returns and pay taxes from 160 hours to 148 hours between 2009 and 2010 (NBR, 2011). All banks in Rwanda earned substantial profits in the first quarter of 2011, registering the strongest recovery from a dire 2009, the year that was characterized by high interest expenses and billions of bad debts, followed by a net loss of Rwf 300 million last year. However, things turned around in 2012 with a robust rebound in the financial industry, awarding banks with high profits in contrast to the pain they endured during the financial meltdown. In fact banks should maintain their optimism because Central Bank increases credit designated for the private sector by 20 percent(Independent newspaper, 2nd June 2011). The good performance in the industry is a result of a prudent fiscal policy for the last five years and increasing lending to stimulate economic growth. The current growth has not been hampered by the Central Banks tight rules that govern the financial game in Rwanda. Banks work in an austerely monitored environment, but there have been a series of monetary easing measures of late. For example, the Central Bank in 2010 massively slashed its key repo rate the rate at which it lends to commercial banks to a record low of six per cent from nine per cent in 2009. This development came on the heels of a stimulus package of Rwf20.21 billion in the banking system in 2010 in addition to Rwf14.51 billion that was spent a year earlier in form of short and long term deposit liquidity facilities to banks (NBR, 2011) Commercial banks, especially the East African Community banks including Equity and KCB banks from Kenya are fighting for more business case in Rwanda. The competition is more on savings account and credit accounts as these are seen as the main cash cows in the banking industry. Th e success in the Rwandan business environment is attributed to the conducive banking environment in the banking industry (National Bank of Rwanda [NBR], 2001). 1.2 Statement of the Problem Competition, both national and international, is increasing in virtually every industry. The key features and the implications of this trend are outlined with specific reference to the banking and financial services industry. The competitive strategy for the banking industry has largely been the identification of potential market niches and segments which could be developed. Due to globalization and liberalization in the world, economies have seen more firms entering into the global markets in general and in the banking industry particularly in upcoming markets. Rwanda government in its process of economic development through conducive climate for investment has attracted many businesses in commercial banks to invest in the country. A liberalized banking sector in Rwanda has witnessed increased competition in the banking industry in Rwanda. More banks especially from foreign countries such as Equity, Kenya Commercial Bank from Kenya, Fina Bank, Access Bank and Eco Bank from Nige ria have invaded Rwanda`s banking sector. In addition to this there are more financial institutions still entering into Rwanda. With the increased competition commercial banks in Rwanda are experiencing a strain on their market share and hence their profitability (NBR, 2009). This means that the banking sector of Rwanda has managed to attract many foreign banks especially from East African community. However the extent to which it has attracted the foreign commercial banks from East African needs to be ascertained. It is therefore, against the above background that the researcher carried out this research and assesses the banking sector in Rwanda and its enabling environment to attract other commercial banks from East Africa. 1.3 Objectives of the study 1.3.1 Main objective The main objective of this research was to assess the banking sector of Rwanda and its enabling environment to attract other commercial banks within East African Community. 1.3.2 Specific objectives of the study The specific objectives of this research were the following;- To examine the nature of Rwandan banking sector ant its environment To identify the environmental factors in Rwanda that are conducive for banking sector. To assess the strategies that Rwanda banking industry has used to attract other banks within East African community. 1.4 Research questions The research question included the following:- What is the nature of Rwanda banking sector and its environment? What are the environmental factors in Rwanda that are conducive for banking sector in Rwanda? What are the strategies that Rwanda banking sector has used to attract other commercial banks from East African community? 1.5 Limitations of the research To every research, process or activity, there are always challenges along the way that tend to disrupt the process. In as far as this research is concerned, the researcher faced the following challenges but was much prepared to handle them and produced a quality research report. Firstly the researcher faced a situation where some of the respondents took long to believe in the purpose of the research. This made them refuse or hastate to fill the questionnaire or accept the interviews. However the researcher did whatever it needed to convince them beyond doubt that the research was purely academic and they provided the required data. In most cases senior management in banks were so busy with work and therefore had limited time to fill questionnaires. However, considering and knowing their situation, the researcher made all the possible appointments with them until they got time for interviews other than questionnaires which took long. The researcher also faced a situation wh ere it was difficult to assess the required literature for the research. However, the researcher was more prepared to do visit all the possible places like libraries, book centers and internet in order to assess a wide range of data. 1.6 Scope of the research 1.6.1 Content scope In carrying out this research, the researcher ensured that the original purpose of the research is not diverted and therefore focused on the Rwandan banking sector and its enabling environment to attract other banks within East African community. 1.6.2 Geographical scope The research was carried out in Equity bank and Kenya Commercial Bank as some of the two foreign banks from East African community. The researcher concentrated on the main branches of the selected banks located in the centre of Kigali City. 1.6.3 Time scope The element of time is very important in the research process because it makes the research more clear and specific. This researcher therefore considered the period from 2009 to 2012. 1.7 Significance of the research The research into Rwandan banking sector and its enabling environment to attract other commercial banks within East African Community will be significant to various sections of people and institutions in various ways among which the following will be included; Submission of the research report is a requirement of Mount Kenya University. Therefore upon its submission the researcher will be allowed to graduate with a Masters Degree in Business Administration Accounting and Finance option. The researcher will also be able to widen understanding in the field of banking and the environmental factors necessary to attract foreign banks. Future researchers in the field of banking will use the knowledge of this research when carrying out research in the related areas. They will be able to widen their understating and make themselves familiar with the banking sector. Equity and KCB Banks will use this research to identify the necessary environmental factors for attracting foreign ba nks and be able see which one they have exploited so far. They will also be able to know far they can fully exhaust the opportunities in Rwanda banking sector. Other foreign banks in Rwanda will also use the knowledge from this research to fully understand the Rwandan banking sector and how they can best exploit it in order to outwit their competitors. The government of Rwanda will use this research to know how far foreign banks understand and appreciate the opportunities in the Rwandan banking sector. This will help the government in providing areas where to base in making future policies related to the industry. Last but not least future investors in banking industry will benefit from this research by knowing the opportunities in Rwanda banking environment that can be exploited to their best advantage. CHAPTER TWO 2.0 LITERAURE REVIEW 2.1 Introduction In this chapter, the researcher reviews literature related to the banking sector, environmental factors that are conducive for banking sector and the strategies that are used to attract foreign banks. The chapter finally presents the summary of the chapter. 2.2 Review of past studies The global financial crisis of 2009 has had a profound impact on banks of all sizes. Institutions grapple with reduced public confidence, heightened shareholder scrutiny and increased regulatory oversight. Troubled banks have been in need of government assistance, intervention and various stimulus packages. Many institutions need to divest certain businesses, while others struggle to fully integrate recent acquisitions (Foley, 2000). Throughout the financial crisis, troubled banks have been in need of government assistance. Intervention and various stimulus packages included everything from the full nationalization of banks in certain countries to modest capital infusions. Other intervention measures incorporated asset purchases as well as liquidity support and guarantee programs. Many institutions need to divest certain businesses, while others struggle to fully integrate recent acquisitions (Gordon, 2011). Banks hit hardest are cleaning their balance sheets and protecting a ssets. Those who fared relatively well are reshaping their business and governance models. The current market turmoil will likely yield positive outcomes as banks reassess the way they do business and learn from these lessons the crisis brought to bear: Improve the way risk is managed across the enterprise, recognize that liquidity is crucial, commanding center stage, look at streamlining businesses by returning to core competencies and seize opportunities through strategic acquisitions, when possible (Emerson, 2007). To effectively manage risk across the enterprise, organizations must define their risk appetite, embed a risk-aware culture and institute more robust risk forecasting and stress-testing. In addition to risk management, liquidity is the focus of attention among executives, boards and regulators. Failing to manage liquidity properly can result in significant reputational damage or worse, insolvency. The fallout from the economic downturn has left banks struggling with other issues key to recovery, including tax and expense management; data quality in risk and finance; and greater regulation and government intervention. The industry response varies by institution. One thing is clear: the financial services industry is in a state of constant flux. Forward-looking institutions understand that formalizing processes and systems whether for risk management, liquidity risk or performance improvement is necessary to support strategic decision-making and prepare for the unexpected (Aslett, 2003). 2.2.1 The nature of the banking sector A bank is an institution which deals in money and credit. It accepts deposits from the public and grants loans and advances to those who are in need of funds for various purposes. A bank is a financial organization where people deposit their money to keep it safe. A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets (Glover, 1986). Banking is an activity which involves acceptance of deposits for the purpose of lending or investing. In addition to accepting deposits and lending funds, banking also involves providing various other services along with its main banking activity. These are mainly agency services, but include several general services as well (Casu Girardone, 2009). A banker is one who undertakes banking activities, accepting deposits and lending money for different purposes. Banking is an activity of accepting funds from the public for th e purpose of lending or investment. The essential features of banking activities are as follows:- accepting deposits from public, lending or investment of such deposits, incidental to the activities of accepting deposits for lending or investing, banks undertake activities like promoting and mobilizing savings of the public, providing funds to trade and industry by way of discounting bills, overdraft, cash credit facility, and transfer of funds from one place to another, Providing agency services to customers, such as collection of bills, payment of insurance premium, purchase and sale of securities and other general services, such as issue of travelers cheques, credit cards, locker facility (Gordon, 2011). Money deposited with the bank is assured as far as its safety is concerned. Further the depositor is allowed to withdraw it whenever required. Banks allow interest on deposits. Such interest helps in the growth of funds deposited with the bank. Thus the rate of interest provid ed on deposits acts as an incentive to the depositors. Banking activities are considered to be the life blood of the national economy. Without banking services, trading and business activities cannot be carried on smoothly. Banks are the distributors and protectors of liquid capital which is of vital significance to a developing country (Arteaga Jeffus, 2007). Efficient administration of the banking system helps in the economic growth of the nation. Banking is useful to trade and commerce. Banking activities are useful to trade and industry in the following ways. Money deposited in a bank remains safe. Precious articles too can be kept in the safe custody of banks in lockers, banks provide credit facilities to their customers. Customers with bank accounts also enjoy better credit in the business world, banks encourage the habit of saving and thrift among people, and they mobilize savings and invest them in productive activities. Thus, they help in increasing the rate of savings and investment in the country. Banks provide a convenient and safe means of transferring money from one place to another and facilitate business dealings/ transactions. Banks collect and realize bills, cheques, interest and dividend warrants etc. on behalf of their customers and foreign trade is facilitated considerably with the help of banks (Aslett, 2003). There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. 2.2.2 Environmental factors conducive for the banking sector. In recent years, potential environmental liability has had a growing influence in the banking industry. Many banking institutions have adopted environmental risk management programs through the assistance, guidance, and/or requirements provided by various organizations. However, while environmental factors are growing in importance, the systematic use of environmental information throughout the banking industry is still not widespread. One possible cause of this is the lack of widely available, accurate, and comparable information that can be used by the banking industry (Cameron, 1995). Vigorous and sustained economic growth, fuelled by investment and entrepreneurship, is needed for the private sector to create more jobs and increase incomes of the poor. In turn, this will generate the revenues that governments need to expand access to health, education and infrastructure services and so help improve productivity. Various governments need to put in place measures that can attra ct foreign investment. Security should be improved, taxes and foreign policies streamlined in order to assure investors that their money will be put to effective use. But in many developing countries, investment rates are too low, productivity gains are insufficient, incentives for innovation are inadequate, returns on investment are not sufficiently predictable, and not enough secure, safe and adequately paid jobs are being created in the formal economy (Radelet Bhavnani, 2004). Developing countries and their donor partners consequently need to do much more to address the market failures and structural impediments that are holding back productive investment (both domestic and foreign), and to do it better, for longer periods and in a more strategic way. This will instill confidence in the minds of international investors who will then realize a need for enjoying such opportunities. Various countries in Africa have adopted privatization policy and are now encouraging foreign inv estment including banks (Arteaga Jeffus, 2007). Developing countries can help foster an investment climate that enables the private sector to flourish and fulfill its role as the main engine of growth. To do so, they can pursue macro-economic stability, improve the functioning of market-regulating institutions and strengthen procedures for contract enforcement and dispute settlement. Developing country governments can also improve the coherence of their policies in a range of areas such as trade, tax, competition and investment promotion that affect the volume of investment and its development impact. In Africa and East Africa in particular their many international banks that have opened doors, signifying that there is enabling climate that is attracting foreign commercial banks (Migliorisi Galmarini, 2004). Reforming the investment climate requires political will, drive and leadership to take on entrenched interests and inertia. Development agencies need to stay the course and support change agents within the public and private sectors and civil society. Development agencies also need to change the way they do business. They need to have access, individually or collectively, to an appropriate range of aid instruments. Their internal systems should not work against staff pursuing longer-term and riskier interventions. Staff working on the range of subjects relevant for promoting investment should be well co-ordinated. More of the goods and services that development agencies procure can be sourced on competitive terms in developing countries, to support local private sector development. Finally, public sector partners in developing countries can be encouraged to engage more with the private sector, such as through public-private partnerships (Radelet Bhavnani, 2004). The Government of Rwanda with the technical and financial support of its partners each year undertakes to develop an economic and financial program to ensure the short term implementat ion of the medium term program stated in the Economic Development and Poverty Reduction Strategy (EDPRS) is translated into tangible outcomes within the economy. Within the banking industry the National Bank of Rwanda (NBR) has ensured that financial institutions operating within the industry are on track as far as ensuring the smooth running of the economy is concerned. In this regard has been restructured the management of banks operating in Rwanda for the purpose of ensuring the sustainability of the industry. As a result of this restructuring the country is confident that the practice of banking in Rwanda is now conducted in a more professional way. Â  The new monetary policy reform which is one of the key components of the macroeconomic reform program falls within the responsibilities of the National Bank of Rwanda. It aims at creating an environment that is conducive to fostering production and investment within the entire economy through ensuring macroeconomic s tability. The National Banks action is thus geared towards building financial stability within the national economy while deepening the financial system. I take the opportunity to request the media and other stakeholders to work on encouraging Rwandans to use banking services by creating awareness about the importance of banking.   We will keep the banking system growing and contributing to the sustained economic growth of the country. Said the governor of National Bank of Rwanda. Exchange Rate Policy, NBR has continued to sell foreign exchange to the market in order to smoothen Rwandan Franc exchange rate fluctuations and to ensure that Rwandas exports remain competitive. The daily reference rate is more market driven as the interbank foreign exchange market develop. A code of conduct was shortly be in place after ratification by all banks as well as formation of a dealers association; this will guide banks in day to day interbank operations. It is recommended to all comm ercial banks to acquire a Reuters dealing platform in the near future and post their daily exchange rates to their websites where possible. Banking Licenses, According to the Governor, NBR has set a new licensing policy.   NBR encourages regional Banks to come to Rwanda looking to merge with the small local banks in Rwanda instead of starting a fresh. They are also encouraging them to open new branches in rural areas instead crowding Kigali City which has enough banks already. The major requirements in starting a bank are a minimum of Rwf 5 billion and a business plan. The governor added. Financial sector deepening, the ongoing programs to implement the Financial Sector Development Program (FSDP) will be accelerated and most of them completed this year. This system will cover the banking system and MFI sector reforms, the capital market development, the non- bank financial service regulation and the modernization of the payments system (Aslett, 2003). Banking sector Reforms, The main priorities this year will include the full application of Risk Based Supervision and improved use of CAMELS benchmarks continued on site review of banks risk management processes and practices (Risk Management Program for Banks), the inclusion of the market risk component in the solvency ratio. Non banking financial sector, this year NBR continued to intensively draft laws so as to establish a more complete legal and regulatory framework for the supervision of the insurance sector, pension industry and other collective investment schemes. The legal instrument to be put in place include ; Regulations and Directives provided within the Insurance law, Insurance contract law, Mandatory insurance law, law regulating pension funds (public and private) and a law governing collective investment schemes, mainly mutual funds, unit trusts and investment companies (Independent news paper, 2nd June 2011). 2.2.3 Strategies used to attract foreign banks Many governments have tried to attract and encourage foreign investment through tax subsidies and tax holidays. Over the past few decades time-series econometric analysis and numerous surveys of international investors have shown that tax incentives are not the most influential factor for multinationals in selecting investment locations. More important are such factors as basic infrastructure, political stability, and the cost and availability of labor. The openness or internationalization of financial services is a complex issue as it is closely related to structural reforms in domestic financial sector with some perceived implications to macroeconomic stability (Migliorisi Galmarini, 2004). Foreign bank entry increases the efficiency of the domestic banking sector. Increased competition tends to reduce costs and to increase profits. The allocation of credits to the private sector may be improved since it is expected the evaluation and pricing of Credit risks to be more sophis ticated this may help foster higher. The presence of foreign banks helps build a domestic banking supervisory and legal framework, and enhance the overall transparency. In order for most governments to attract commercial banks from other countries to come and enjoy business, they improve security and equal investment opportunities. Independent institutions to regulate investments are set up in various countries for example the Rwanda Development Board. Such institutions provide relevant information regarding investing in the countries to prospective investors from other countries. It is through these institutions that foreign investors develop trust and confidence to do business in the country (Gordon, 2011). It is expected foreign banks to provide more stable sources of credit since they may refer to their parents for additional funding and they have easier access to international markets. Thus, domestic financial markets will be less vulnerable to domestic. Foreign banks may reduce the costs associated with recapitalizing and restructuring banks in the post-crisis period. Most of the investors need to know the steadiness and stability of the countrys currency in relation to the dollar. This assures investors that investing in such a country an activity worth a business and that their business will yield some profits and justify participation in such a sector (Galmarini, 2004). In most cases when decisions related to foreign investments are being made concern is given to Liquidity, that is, how liquid is the investment. Exchange rates and leverage of exchange rates, Tax implications tax havens or rates of tax in foreign country, Political stability how stable is the political front for example Zimbabwe is very unstable and therefore few commercial banks would go to there for business. Therefore for governments to attract commercial banks they need to put them in place and satisfy the foreign investors that the market is safe (Chowdhury, 2009). 2.3 Critical review (Gap analysis) The study will seek to identify how the banking sector in Rwanda and its environment as independent variable have been able to attract other commercial banks in East African region (Aslett, 2003). How the policies of the National Bank in Rwanda have favored and pulled other commercial banks from the region to come and participate in the banking industry. The researcher will further asses the gap between the two variables and cover the gap between the variables and the impact that analyses out the penetration of other banks in the banking sector of Rwanda. Foreign bank penetration can have several positive as well as negative implications for emerging and transition countries. On the positive side, foreign bank management practices and information technology may improve the efficiency of the domestic banking system, both directly and indirectly by competing with domestic financial institutions. Also, foreign banks may start to offer new financial services, may stimulate better re gulation, accounting standards and the financial and legal structure more broadly, and may also attract (other) foreign direct investments (FDI). Additionally, a growing supply of foreign bank credit can reduce the costs of obtaining loans for domestic firms. Importantly, foreign banks will be more independent of the local government and may have less incestuous relations with domestic firms. Lastly, well-capitalized foreign banks may be able and willing to keep lending to domestic firms during adverse economic conditions, as opposed to domestic banks which will possibly lower their credit supply (Gordon, 2011). On the negative side, foreign banks might just as well be less inclined to keep up their credit supply in the host country, for instance when the economic environment in their home country deteriorates. Another source of concern is that foreign banks may only provide credit to the large and often foreign owned (multinational) firms, leaving the bad corporate credit risks as well as the retail market and the related payment services to domestic banks (cherry picking). Lastly, foreign bank penetration, whether cross-border or by means of local subsidiaries, may weaken the position of the (less sophisticated) domestic banking system. Domestic banks that are not able to cope with the increased competitive pressures may for instance fail and lead to periods of severe financial instability (Taylor, 2008). Some pros and cons are exclusively related to a specific form of entry: through local subsidiaries or cross-border. Only by buying a subsidiary can a foreign bank provide new funds to recapitalize a troubled banking sector. Additionally, such subsidiaries can in times of crisis operate as a safe haven, and thus reduce the flow of domestic funds abroad as residents can now do their capital flight at home. Finally, cross border credit by foreign banks may lead to specific problems of financial instability. 2.4 Conceptual framework Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks which provide all services entirely over the Internet have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches (Chowdhury, 2009). Globalization has rendered international expanding activities increasingly important for the survival, growth and success of modern firms. Simultaneously, the banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions and going international to look for further investment opportunities (Drogendijk Hadjikhani, 2008). Competition is generally considered a positive force in most industries, it is supposed to have a positive impact on an industrys efficiency, quality of provision, innovation and international competitiveness. However, this issue has always been controversial in banking, as the perceived benefits derived from increased competition have to be weighed against the risks of potential instability. Within this fluid business environment, which is characterized by international mergers and acquisitions and extreme competition between the enterprises, the internationalization of banking work is a subject of major importance for researchers and economists (Germanidi, 1982). The financial crisis and the subsequ ent distrust of the existing banks have created an opportunity for new competitors to enter the market for financial services. An international bank is able to adopt for its presence in a country various forms. More specifically the Creation of representative office is the simplest form of extension, as it formed for an initial investigation of the foreigner banking market. The banks branches of this form do not handle any funds neither they execute financier transactions, while the bank that they represent, is not considered present in the foreigner country, either legally or for tax reasons (Glover, 1986). Globalization is the universal trend in economic markets and the focal point in the twenty-first century. Banking organizations shifted from highly centralized domestic organizations to dispersed global organizations. The main profit of the internationalization of banking work is the increase of the surplus of consumers. For the banking services the surplus of consumer is inc reased when the interest rate of sponsoring is decreased, while the interest-rate of deposits increases. More specifically, for a healthy competition, the profit in question is maximized, after it increases the interest-rates of deposits by decreasing the interest-rates of sponsoring and the cost of supplies (Gordon, 2011). A second profit from the internationalization of banking work is that the international banking extension increases the effectiveness of international capital by improving and their flow. This means that, the effectiveness of distribution of capital brings in economic contact lenders and borrowers from different countries. Another profit from the internationalization of financier markets, is the increasing degree of convergence of interest-rates of domestic market with those that exist in the Euromarkets. At the same time, the internationalization of financier markets leads to the weakening of the phenomenon of deportation of private investment in the public s ector, as in an environment of free market of capital, the prevention of the private investments from the state, is compensated, relatively easily, with the foreigner saving capital (Aslett, 2003). The cost from the internationalization of banking activities is found in the loss of income for the countries, as the internationalization of work leads to the escape of capital to countries where the committed deposits have higher interest or still, the central bank of that country keeps smaller compulsory percentage of capital from the commercial banks. Banks have an important role in an economy: they are intermediaries between people with shortages and surpluses of capital. Their products include savings, lending, investment, mediation and advice, payments, guarantees, and ownership and trust of real estate. These core activities generate two principal sources of income: interest earnings and provision earnings. In the first case, a bank is working on its own behalf and risk; and in the second case on behalf of and at the risk of its clients. It is usual to distinguish between different banking departments such as investment banking, commercial banking, corporate banking, private banking, trade finance, electronic banking, securities, financing and loans, savings and so on. Some banks specialize in one or more of these areas. Universal banks usually cover all activities (Glover, 1986). As one of the worlds largest economic sectors, and as one that reaches virtually every consumer and business, the financial services industry must be involved in mitigating climate change and its impacts. At the same time, banks face an immense but yet largely untapped opportunity to enter new markets and develop more efficient and environmentally sound industries that will benefit generations to come, while preserving their longstanding leadership role in wealth and capital formation. Banks have the reach, influence and access to capital required to lead the changes needed t o transform the industry (Arteaga Jeffus, 2007).. Figure : Conceptual framework Independent variable Dependent variable Enabling environment Political stability Macro economic policies Infrastructural developments Attraction of commercial banks Business opportunities Secure environment Market availability Impact Bank rate Financial exchange platform Controlled inflation Legal reserve Source: Researcher 2012 2.5 The Banking Sector in Rwanda The Government of Rwanda with the technical and financial support of its partners each year undertakes to develop an economic and financial program to ensure the short term implementation of the medium term program stated in the Economic Development and Poverty Reduction Strategy (EDPRS) is translated into tangible outcomes within the economy. Within the banking industry the National Bank of Rwanda (NBR) has ensured that financial institutions operating within the industry are on track as far as ensuring the smooth running of the economy is concerned. In this regard has been restructured the management of banks operating in Rwanda for the purpose of ensuring the sustainability of the industry. Recent developments in the financial sector highlight the importance of implementing bold strategies to mobilize domestic saving to increase the capacity of the domestic financial system to be in a position to meet the increasing demand of credit to finance big investment projects in the p ipeline (IMF, 2005). The government of Rwanda has tried as much as possible to improve security, stabilize the currency, and creating a conducive climate for foreign investor. Many banks have opened doors in Rwanda and are appreciation the industry. The country is looking forward to receive more foreign banks from East African community and beyond. In 2011, Rwandas economy evolved in a challenging international and regional economic environment. The world economy was marked by high oil and food prices, a sovereign debt crisis in the Euro zone and a debt ceiling crisis in the USA, while in the East Africa sub-region, inflationary pressures have been increasing at a very high pace, never recorded in the last decade. In the EAC region, inflation continued to rise in 2011 mainly owing to the increase in oil and food prices. In December 2011, on annual basis, inflation hit 27.0 percent in Uganda, 18.9 percent in Kenya from respectively 3.1 percent and 4.5 percent in December 2010. During the same period, headline inflation reached 19.8 percent in Tanzania and 14.9 percent in Burundi from 5.6 percent and 4.9 percent in December 2010 respectively (NBR, 2001). Similarly, inflation in Rwanda has been increasing as well but maintained at moderate levels. The annual headline inflation reached 8.3 percent in December 2011 from 0.23 percent in December 2010. Moderate inflation has been achieved due mainly to good harvest that kept domestic food markets stable, a relatively stable exchange rate, as well as well coordinated Government policies to mitigate the exogenous inflationary pressures. Despite the challenging international and regional economic environment, Rwanda managed to sustain dynamic economic activities in 2011, recording high performance in all sectors. Real GDP growth is estimated at 8.8 percent higher than 7.0 percent initially projected and 7.5 percent achieved in 2010. This growth was driven by agriculture sector (+8.2 percent) reflecting the i mpact of ongoing Government reforms and favorable climatic conditions. It was also pushed by the industry sector (+15.1 percent) and services sector (+8.5 percent) both boosted by significant improvement in credit market conditions. The dynamism in the Rwandan economic activities was also marked by a strong improvement in the external sector. The export sector in 2011 continued to perform better, sustained by traditional exports; where formal exports of goods covered 23.8 percent of imports in 2011, from 18.3 percent in the previous year, as a result of more rapid increase in exports. Indeed, exports value increased by 52.8 percent against 17.3 percent for imports. The National Bank of Rwanda has continued to maintain a prudent monetary policy and exchange rare in the economy that has continued to put confidence in the minds of the business community. The banking sector demonstrated positive stance with an increase in the balance sheet of 24.5 percent. The sector has been p rofitable, liquid and well capitalized to sustain growth but also resilient to external shocks as a result of strengthened legal, regulatory and supervisory framework. For instance, the Capital Adequacy Ratio (CAR) increased to 27.2 percent in 2011 from 24.4 percent 2010.This is well above the minimum required Capital Adequacy ratio of 15%, which shows the stability of the financial sector (NBR, 2001). 2.6 Summary In this chapter, the researcher presented literature related to banking sector, environmental factors necessary for attracting foreign commercial banks in the country, the researcher gave emphasis to the nature of banking sector and the strategies that are used to attract foreign banks in the country. The researcher through theoretical review of literature identified the areas related to attraction of foreign commercial banks in Rwanda that other researchers never covered. The researcher also identified the areas the through which the central bank of Rwanda has been instrumental in the attraction of foreign commercial banks through provision of a stable, free and secure banking environment in Rwanda. The relationship between the research variables and how they relate was also reviewed through the conceptual fragment and the reluctant effect was presented. CHAPTER THREE 3.0 RESEARCH DESIGN AND METHODOLOGY 3.1 Introduction This chapter discusses the different methods that the researcher used in carrying out the research. It presents the type of research design that was adopted by the researcher, the population of the research, sample size and sampling techniques. The chapter also presents data collection tools like the questionnaires and interviews together with the sources from where data was got. The chapter further gives the methods of data presentation, analysis and interpretation, the ethical considerations of the research together with validity and reliability. 3.2 Research Design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure or a conceptual structure within which research conducted (Kothari, 2011). The researcher adopted descriptive and analytical research designs in order to ensure sufficient information and clarity of the research. The researcher based the research on both numerical and non numerical data meaning that it was both qualitative and quantitative. 3.3 Population According to Kothari (2001), the population in a research refers to all items in a unit of inquiry. The population of the research was 151 including 68 employees of KCB and 58 employees of Equity bank main branches located in the centre of Kigali city, 25 senior employees from National Bank of Rwanda were also be considered. Respondents were selected using purposive sampling technique to ensure that respondents with relevant data are contacted. 3.4 Sampling and Sample Size Sample size refers to the number of items to be selected from the population to constitute a sample (Kothari, 2011) The sample size of the study was selected using the Slovins fomula n ÃÆ' ªÃƒâ€¦Ã‚ ¾Ãƒâ€¦Ã‚   N/ (1+Ne2 ), where n is the sample size, N the population and e is the sampling error. (Adanza, 1995). Therefore, the sample size was 126/(1+126(0.0050.005) meaning that the sample size was 95 employees from Kenya Commercial Bank (50) and Equity bank (45) main branches. A sample size of 25 employees from National Bank of Rwanda was also considered. Purposive sampling technique was employed to select relevant respondents. 3.5 Data collection This refers to the instruments, tools or techniques that are used to collect data from different sources both primary and secondary (Kothari, 2011). This refers to the tools and instruments that the researcher used to collect the data for the research. These included questionnaires, interview guide and documentary review. To ensure validity and reliability of the data collected, data collection tools were clear, reliable, accurate and measurable. The researcher made sure that the instruments were free from bias. 3.5.1 Questionnaire The researcher designed clear questionnaire containing closed and open ended questions which were given to respondents to give their views about the study topic. The procedure for administering questionnaires included introduction, telling respondents the purpose of the study and requesting them to express their views about the study topic. 3.5.2 Interview Guide As earlier said, the researcher expects to hold short interviews with respondents who were not having enough time to fill questionnaires. The researcher did this with the help of interview guide. 3.5.3 Documentary Review This included reviewing written documents from different libraries, book centers and internet. 3.6 Sources of Data The researcher collected data from both primary and secondary sources. The researcher considered both sources as necessary to make the researcher clearer. 3.6.1 Primary Data This refers to data collected a fresh and for the first time and thus happens to original in character (Kothari, 2011) Primary data is data collected directly from the source; it is normally referred to as the original data. The researcher used questionnaire and interviews to get this data directly from respondents. 3.6.2 Secondary Data This refers to data that has already been collected by someone else and which has already been passed through the statistical process (Kothari, 2011) Secondary data is data that is got from written documents like text books, internet, journals and reports. The researcher got this data through the process of documentary review. 3.7 Data Analysis and Interpretation The researcher presented the collected data extracted from questionnaire and interview guide using table and various figures including graphs and pie charts. The presented data was later analysed and interpreted based on the frequencies and percentages of respondents views. 3.8 Ethical Considerations In the process of carrying out the researcher, the researcher maintained a cordial relationship with respondents, remained honest, genuine and focused to the research objectives. As a person of integrity, the researcher did not undertake research for personal gain, nor did the research have effect on others. Information from respondents was treated with confidentiality. CHAPTER FOUR 4.0 DATA ANALYSIS, PRESENTATION AND INTERPRETATION 4.1 Introduction This chapter deals with presentation, analysis and interpretation of the information given by respondents into more useful form that can facilitate decision making. The researcher presents the data by the help of tables and figures. The frequencies and percentages of respondents views were used to analyse and interpret collected data. 4.2 Social demographic characteristics of respondents The researcher analysed the age, education and experience of respondents in order to find out whether data was corrected from knowledgeable, mature and experienced respondents and can be trusted or not. Figure : Age of respondents Figure 2 presents the range of respondents age, in order to determine how old respondents were since are and maturity are related and views normally correspondent with respondents age Source: Primary data 2012 From figure 2, 75% of contacted respondents were above the age of 35. The researcher in interpreted respondents age as enough to make respondents give constructive views since they are all old enough to understand reasons why banks come to Rwanda and conditions that attracted them. Therefore the views given in this research are significant enough to be trusted and relied on in making further conclusions. Table : Gender of respondents Gender Frequency Percentage Male 50 42 Female 70 58 Total 120 100 Source: Primary data 2012 In table1, most of the contacted respondents were found to be female (58%) while their male counter parts were 42%. This according to the researcher meant that the contacted respondents were mainly female which could be the policies of contacted institutions in recruiting employees. Therefore, the views gives were from both male and female and therefore there is gender representation and can therefore be trusted. Figure : Respondents level of education Source: Primary data 2012 According to figure 3, 91% of the contacted respondents hold a university degree. With this image the researcher realise that the contacted respondents were qualified enough to understand the issues under study and their views are significant in making reliable conclusions about the banking sector of Rwanda and its enabling environment to attract other foreign banks in East African community. Table : Length of time respondents have worked in banks Period Frequency Percentage Less than 1 year 33 28 1 3years 65 54 Above 3 years 22 18 Total 120 100 Source: Primary data 2012 According to table 2, 72% of the contacted respondents had spent a period above 1 year. This according the researcher signified that respondents views given were out of experience and should therefore be trusted in making decisions. 4.3 Nature of Rwanda banking sector In this section, the researcher presents views of the respondents related to the nature of Rwanda banking sector so that a conclusion can be made upon them on the nature of the banking sector in Rwanda. Figure : Respondents description of Rwanda banking sector Source: Primary data 2012 According to figure 4, 92% of the contacted respondents described the banking sector in Rwanda as good. This led the researcher to the understanding that Rwandan banking sector is good enough to attract other commercial banks within East African community. Table : Respondents views on whether their expectations from Rwanda banking sector have been met View Frequency Percentage Have been met 81 85 Have not been met 0 0 Not sure 14 15 Total 95 100 Source: Primary data 2012 According to table 3, 81% of the contacted respondents said their expectations from the banking sector have been met. None of the contacted respondents said expectations have not been met. This made the researcher realise that Rwandan banking sector is good enough to satisfy expectations of the attracted banks because of the environmental factors and policies. When asked to give reasons for their answers, contacted respondents said that the business moves on smoothly and uninterruptedly(40%) while others said high profitability levels (38%) and 22% said the government policies are favourable to the banks. This served to make the researcher confirm that Rwandan baking sector has satisfied interests of the attracted banks because of it nature. Figure : How respondents consider Rwandan banking sector in relation to that of other countries Source: Primary data 2012 According to figure 5, 89% of the contacted respondents said the banking environment of Rwanda is much better. However, none of the contacted respondents said it is worse. This made the researcher confirm that Rwandan banking sector is better than in other countries and has capacity to attract foreign banks from East African community. When asked to give reasons for their answers contacted respondents revealed that the country has managed to control inflation compared to other countries (41%) while 29% said the national bank of Rwanda has effective monitoring of commercial banks. 27% of respondents said security in the country is paramount while 3% said there is free competition. This further justified the fact that Rwandan banking sector is attractive and sufficient enough to facilitate attraction of foreign banks from East African region. Table : What the National Bank of Rwanda has done to improve the banking sector What has been done Frequency Percentage Controlling inflation 32 34 Stability of the Rwanda franc 28 29 Training 20 21 Liberalisation 10 11 Monitoring 5 5 Total 25 100 Source: Primary data 2012 According to table 4, respondents contacted revealed that the National Bank of Rwanda has controlled inflation (34%), stabled the Rwanda Franc against the dollar (29%), and offered banking trainings (21%), liberalisation of the economy (11%) and monitoring of the banking environment. This made the researcher realise that the national bank of Rwanda has been very significant in creating enabling environment that has attracted foreign commercial banks from East African community. Figure : What officials from National Bank of Rwanda consider special on Rwanda banking sector than that of other banks Source: Primary data 2012 According to figure 6, it was revealed by the respondents that free completion in Rwanda banking sector makes it special (28%), low levels of inflation (20%) and that the sector is well organised (36%). Respondents also said that the Rwandan banking sector is properly monitored by the National Bank of Rwanda (16%). This means that with no doubt there are enabling factors that have made the Rwandan banking sector special compared to those of other countries. Table : Views of respondents from NBR on whether they think bank policies have favoured commercial banks in Rwanda View Frequency Percent

Grow Potassium Alum or Synthetic Ruby Crystals

Potassium alum or potash alum crystals are among the most beautiful and largest crystals you can grow overnight. All you need is hot water and potassium alum, also known as potash alum. Potassium alum may be sold as a deodorant crystal or in solution for use as an astringent. I got the powder for growing this crystal from a Smithsonian crystal-growing kit (labeled as potassium alum). Prepare the Ruby Crystal Solution All you need to do to prepare the crystal solution is to mix as much potassium alum as will dissolve into 1 cup of very hot water. You can add food coloring to tint the crystals. The natural color of the crystals would be clear or white. Growing the Crystals I poured the solution into a clean bowl, trying to avoid getting any undissolved material into the new container. Allow the crystals to grow overnight. If your solution is very darkly colored, you wont be able to see whether or not you have crystal growth. You can use a spoon or fork to scrape crystals from the bottom. To get a large single crystal like this one, remove all of the crystals and return a few that have the desired form to the solution so they can continue growing. Remove them and allow them to dry when you are satisfied with their appearance. Synthetic Rubies One common form taken by this crystal is a regular octahedron with flattened corners. The colored crystal resembles a ruby. In fact, the first synthetic ruby was produced by Gaudin in 1837 by fusing potassium alum with a little chromium (for color) at a high temperature. A synthetic or natural ruby has a Mohs hardness of 9, while a potassium alum crystal only has a hardness of 2 and is readily soluble in water. Therefore, while your overnight-crystals may resemble a ruby, they are too soft and fragile for any purpose besides display. Even though they arent real rubies, these crystals are well worth your time since they are so so easy and quick to grow and have such a beautiful form.

Essay on Confucianism and Its Implications in Modern China

Confucianism and Its Implications in Modern China Confucianism is a time enduring philosophy that has stood up to invading clans, war, resentment, enforcement and infringement of new philosophies, and eventually, revival. For almost 80 years, up until the late 1970’s, Confucianism and its ideas and values have been all but wiped away from China. Though effort was made to remove Confucianism for good from China by the Communist leader Mao Zedong in 1949, the ideas and values were so deeply embedded into peoples mind and the culture that even suppression could not keep it out of the culture and practices. The main factor that has brought Confucianism back into the limelight in China and other East Asian countries is the recent†¦show more content†¦When looking at the ideas of Confucianism, one must look at the values that he expresses that are essential to human beings in order to become gentleman. Some of these values are present in every society and in every country. Ideas like jen and the Golden Rule are ind ispensable to life in almost every society on the globe. In order to look at Confucianism and evaluate whether it has relevance in the modern era, one must look at the social, political/governmental, and economic aspects that it brings. When doing this, however, one has to be open and willing to account that the ideas of Confucius are present even when they do not seem as though they may be implemented or those persons do not feel that they possess them in a Confucian sense. In addition, you must approach this with the intent to merge ideas together. It is no surprise that philosophies adapt and develop overtime; therefore, one must admit that all societies correlate in some way to each other and to refute that this is true is to refute that both societies are erroneous. Society is the biggest aspect of life in which Confucianism has tremendous impact on. 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Challenges of Recruitment and Selection-Free-Samples for Students

Question: Discuss about the challenges of recruitment and selection. Answer: Introduction The report gives emphasis on the key challenges that are related to the recruiting of the employees in the organization. The company selected is Wesfarmers and it gives focus on the key challenges of recruitment and selection. It also discusses the strategies that should be adopted so that the challenges can be overcome. Wesfarmers Limited is one of the largest Australian companies established in 1914. Headquarter of the company is situated in Perth, Western Australia. The company operates its activities in chemicals, coal mining and also in industrial products. It is one of the largest companies if revenue and employees are taken into consideration. There are approximately 205,000 employees who are working in the organization. In 1984, the company was listed in security exchange and also enhanced its business as a retail corporation in Australia. The main aim of the company is to enhance its operations worldwide and also to attain long-term goals and objectives. In 2001, the company is known as a free traded public listed company with proper open ownership. The company is taking into consideration other business also after becoming a public company. Recruitment and selection Wesfarmers is facing many challenges that are related to recruiting the employees that need the effective strategies that should be considered so that the goals and objectives can be accomplished. Recruitment is concerned with the process that analyzes and identifies the needs and requirements of the organization and also employs the employees in an organization. Also, the selection is the process that only considers right and suitable candidates for conducting the activities of the organization. Recruitment and selection is the essential element of the human resource management. The Wesfarmers takes into consideration proper recruitment and selection process so that the suitable candidates can be selected in the organization (Marchington et al., 2016). The human resource department has a significant role in the company. Wesfarmers will not be able to conduct the activities without proper human resource management. The company has to face various problems at the time of recruiting th e right candidates. The challenges are: Changes related to measurement: It is considered as one of the main issues that gives direct impact on the productivity and also on the efficiency of the company. The company also focuses on considering the potential people, so that the activities can be conducted effectively. There are many employees who take a lot of time to minimize the challenges and obstacles. In this way, the direct impact is seen on the minimizing the productivity and morale of the organization (Shaffer et al., 2012). Laws and regulations: There are many employment laws and regulations that are ignored by the organization. It can create a serious problem for the company. The recruitment is also affected by giving focus on the rules and regulations (Cummings and Worley, 2014). Leadership development: After many types of research it is evaluated that leadership development and programs play an important role so that the organizational challenges of the company can be attained. In the recent scenario, the company has to face many challenges at the time of implementing the leadership development and also many other programs. The company is not able to implement the leadership development programs in an effective manner (Cook, 2016). Workforce training and development: Wesfarmers gives focus on investing a huge amount in the training and development programs so that the employees of the organization can conduct the activities in a proper manner. There are many problems analyzed at the time of appointing efficient employees in the organization. Also, the company can consider many activities to accomplish goals and objectives effectively. So, it is analyzed that the employees are not able to understand the culture and environment of the organization (Bratton and Gold, 2012). Adapting innovation strategy: Training and development are considered as a changing process. The organization takes into consideration innovation and also new technology so that appropriate training can be provided to the employees who are new in the organization. So, there are various challenges that are faced by the organization (Ford, 2014). Compensation: There are various companies who consider the best structure for the employee's compensation. It is evaluated that the company is not able to consider the proper compensation and remuneration policies for the candidates. So at the time of giving employment to the employees the company faces many issues and challenges. Recruiting the talented candidates: Talent is considered as an important factor that should be possessed by every employee who is conducting the day to day activities in the organization. A talented candidate enhances the profitability and productivity of the organization. If the candidate is talented then they join the company when the attractive package is given to them. It is difficult to analyze the candidates or to find a candidate who possesses required skills and knowledge. To retain talented employees: It is evaluated that due to the high competition level it is difficult for an organization to retain the suitable candidate for the job. Employee turnover is also one of the expensive methods for the business and also the direct impact is given on the growth of the organization (Sparrow and Cooper, 2012). Workplace diversity: One of the major issues in the company is related to the workplace diversity. The cross-cultural differences take place in the company and also the organization cannot diversify the business to the cultural differences. Wesfarmers is giving focus on appointing the fresher's so that the activities can be conducted in an effective manner. The organization cannot increase experience and knowledge from the fresh candidates. The company does not give focus on the negotiated package of the employees (Kolb, 2014). Organizational image: Image of the organization is also one of the major challenges for recruiting the employees in the organization. Wesfarmers is considered as one of the largest companies in Australia. The effect is also due to the image of the company in the market. The recruitment and selection are affected by considering the image of the organization. Labor supply and demand: The labor supply and demand is one of the essential factors which give direct impact on the activities of the organization. Sometimes it is evaluated that demand for a large number of candidates increases for conducting the day to day activities. It takes into consideration that the labor force is less as a comparison is made with others (Phillips, 2016). Strategies to address these challenges There are various strategies that help to reduce the challenges of recruitment like: The organization should give emphasis to the leaders and also on the team players so that proper collaboration can be made. The organization should offer proper strategies so that motivation level can be enhanced. The organization should also give focus on training and development, so that the employees can effectively conduct day to day operations of the organization. If the company offers proper training and development then the direct impact will be given to the behavior of the employees who are conducting the day to day operations (Jiang et al., 2012). The organization should also take into consideration proper rules and regulations so that the issues related to recruitment can be reduced. Communication is also one of the major issues in the Wes farmers. The top management and also the managers of the organization should give emphasis on enhancing the communication with the candidates. In this way, the employees can feel comfortable and can also contribute in the enhancement of the profitability and success (Armstrong and Taylor, 2014). Compensation is also one of the essential factors on which the company should give focus. Wesfarmers should create proper reward system so that the performance of the employees who are working in the organization can be enhanced. The company should give focus on providing the incentive programs like medical benefits and also benefits that gives a positive impact on the behavior of the employees. Staffing is also one of the important strategies that help to reduce the challenges of recruitment at the workstation. It is one of the best methods through which capable candidates can be selected to conduct the day to day operations of the business. Wes farmers should also consider the proper advertisements and brand strategies so that the competitive advantage prevailing in the market can be attained. The company should give focus on giving proper advertisements so that the key challenges can be reduced. If strategies are conducted then it can help the company to reduce the challenges (Stone and Deadrick, 2015). By taking into consideration all these strategies the company can enhance the recruitment process as it can minimize the key challenges of the recruitment at the workstation. The company can easily enhance the human resource department so that the activities can be conducted effectively in the organization. It will also assist the potential and capable candidates to conduct the operations. If the candidates are capable enough then the positive impact can be analyzed on the working pattern of the company. Conclusion Wesfarmers is considered as one of the largest companies in the mining sector. The report explains the recruitment strategies of the organization. The report focuses on the challenges of recruiting the labor force at the workstation. Thus, the company focuses on taking into consideration effective strategies so that the challenges can be overcome easily. It also assists to enhance the efficiency and profitability of the employees as well as of an organization. Wesfarmers should give emphasis on the skills and abilities of the workers conducting the activities in the organization. In this manner, the organization can build proper human resource department in the company. The company also promotes and encourages the motivation level of the employees working in the organization. References Armstrong, M., Taylor, S. (2014).Armstrong's handbook of human resource management practice. Kogan Page Publishers. Bratton, J., Gold, J. (2012).Human resource management: theory and practice. Palgrave Macmillan. Cook, M. (2016).Personnel Selection: Adding Value Through People-a Changing Picture. John Wiley Sons. Cummings, T. G., Worley, C. G. (2014).Organization development and change. Cengage learning. Ford, J. K. (2014).Improving training effectiveness in work organizations. Psychology Press. Jiang, K., Lepak, D. P., Hu, J., Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms.Academy of management Journal,55(6), 1264-1294. Kolb, D. A. (2014).Experiential learning: Experience as the source of learning and development. FT press. Marchington, M., Wilkinson, A., Donnelly, R., Kynighou, A. (2016).Human resource management at work. Kogan Page Publishers. Phillips, J. J., Phillips, P. P. (2016).Handbook of training evaluation and measurement methods. Routledge. Shaffer, M. A., Kraimer, M. L., Chen, Y. P., Bolino, M. C. (2012). Choices, challenges, and career consequences of global work experiences: A review and future agenda.Journal of Management,38(4), 1282-1327. Sparrow, P., Cooper, C. L. (2012).The employment relationship: Key challenges for HR. Routledge. Stone, D. L., Deadrick, D. L. (2015). Challenges and opportunities affecting the future of human resource management.Human Resource Management Review,25(2), 139-145.

Selection Training of Pran Essay Example

Selection Training of Pran Essay Executive Summary Selection is a key component in the acquisition of human resources. Without a reliable and effective selection mechanism, a business can never flourish, especially in the present world of market economy, which is fiercely competitive. Big multinational corporate houses try to recruit the best people in order to continue their dominance in the market. In such circumstances, local firms should also be concerned and put their best to select best available persons Training is another component of human resource management, which needs special attention. Selecting the potential candidates will not serve the purpose until they are grouped up appropriately to meet the requirements of the job . At present many sophisticated techniques are Selection Training available for providing training to employees. But unfortunately, in Bangladesh, traditional techniques, whose affectivity is relatively lower, are mostly used . There are ample scopes in most of the local organization to enhance the performance level of employees by adequate and effective training programs. ACKNOWLEDGEMENT It is my pleasure to acknowledge the effort of the report of â€Å"Selection and Training process in PRAN Group† and lecturer’s, students and other personnel for supporting such a nice program, from which I have earned a wonderful experience. I would like to thank my honorable advisor and course coordinator Ms. Farzana Elahi Asian University of Bangladesh , for providing proper guidance and help to complete the research project. I would also like to acknowledge the following personnel and classmates for helping me to make report in several ways. Iqbal Hossain (Manager, HRD PRAN Group) †¢Mamunur Rashid (GM, PRAN Group) 1. OBJECTIVE OF THE STUDY: †¢ To study the selection process and selection devices used in PRAN group. †¢ To study the training programs and methods used in PRAN Group. †¢ To evaluate the selection process and training programs of PRAN Group. †¢ To coordinate the theories of selection and training in a real life †¢ Situation. †¢ To coordinate the scope of improvement in the selection and training of PRAN Group. 2 Methodologies Reviewing the theory of selection and Recruitment †¢ Selection of the organization to be studied. †¢ Determining the variables required. †¢ Developing a questionnaire on the basis of required information. †¢ Interviewing the personnel orally and with the questionnaire. †¢ Studying the supplied materials by the organization. †¢ Analyzing the collected materials and information. †¢ Correlating the analyzed information with theory. †¢ Assessing the overall selection and training procedures in PRAN Group. 3 Limitations of the study It was often difficult to correlate theory with practice as the selection and training processes of PRAN Group, which is not very well defined and systematic. †¢ Due to secrecy of business strategy, the authority of PRAN GROUP did not disclose much in-depth information regarding organization. †¢ Corporat e executives usually remain very busy. It is difficult to get adequate time from them. More importantly, sometimes they expressed once, which was embarrassing for the authors. 1 History of PRAN PRAN is the brand name of Agricultural Marketing Co. We will write a custom essay sample on Selection Training of Pran specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Selection Training of Pran specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Selection Training of Pran specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Ltd. (AMCL). It was launched in 1983 as an agricultural business. The company was established to serve diverse purposes like serving small farmers with inputs, marketing farm products, organizing contract growers to grow specific crops and exporting of agricultural products. PRAN stands for 11 â€Å"Program for Rural Advancement Nationally†. The Mission of the company is to generate employment opportunity and to earn dignity and self-respect for their compatriots. The objective of the company is to achieve social values with sustainable pecuniary advantage. The company is very much vertically integrated that starts from the mango cultivation up to the finished products in different forms. The company makes available farm inputs at the farmers doorstep. They go for cultivation and processing of hybrid tomato, baby corn and mango through contract farmers on commercial scale. PRAN has latest technology that can produce pineapple round the year. PRAN also introduced tissue culturing, cultivation, processing, canning and dehydration of the mushrooms on commercial basis. In the factory it has food processing plant and pulping plant, which supply the ingredients for the main plant. Unlike other companies who are importing raw materials from other countries, PRAN is basically trying to help the farmer community of Bangladesh. Country can be proud to have PRAN because it is made from our mango and sugar. AMCL set up its bottling and canning factory on 8 acres of land in May 1991. Over the years the factory has expanded substantially in all spheres of food processing such bottling, canning, pulping, pickling, concentrating, dehydrating as well as installation of Bangladeshs first tetra pack facility for juices and modem extrusion plant for snack food. Machinery for all these lines are being installed, expanded, modified and fabricated continuously. PRAN became very successful competing with strong multinational companies like Coke, Pepsi, and big companies from different parts of the world from very beginning. It has a strong distribution channel, which helped the company to become successful in the beverage industry. One other important factor that is needed to sustain in this business is to have a very strong market. Though Bangladesh is a highly populated country with 120 million people, there are very few people who can afford to have a quality product like PRAN. If market grows and over all macro economic condition improves then companies like PRAN can sell high volumes. For the development of beverage industry three things are needed. One is company like PRAN should come with quality products, good distribution network and important thing is increasing the income level of people to afford quality products. 2 Subsidiary Enterprises PRAN Group is one of the fastest growing corporate houses in the country. It has got quit good number of subsidiary enterprises, which includes: †¢ Property Development Ltd. (PDL): This is the oldest enterprise of PRAN Group. The Group was established on the profit made by PDL. This enterprise is one of the pioneers in apartment business in Dhaka. †¢ Property Lifts: It is a new enterprise of PRAN Group. It imports elevators and other accessories to meet the growing demand of modern lifts and escalators. †¢ Rangpur Foundry Ltd. (RFL): This is an established engineering enterprise, which focuses to meet the demand of rural community of Bangladesh. A tube well made by RFL is most prominent in the country. †¢Agricultural Marketing Co Ltd. (AMCL): AMCL was started as a fruit processing enterprise. Gradually, other sectors of food industry (e. g. Chips, mineral water, Tomato Ketchup etc. ) were also incorporated in the manifold of AMCL. At present, AMCL has become the flagship enterprise of PRAN Group. Most of the resources of PRAN Group are now devoted for the growth and operation of AMCL. In the long run, the group intends to become a global leader in the field of agricultural industry. 3 Products of PRAN The average sales growth of PRAN is more than 70%, which is an extraordinary growth. PRAN is in bottles, tetra packs, and in plastic bottles. RAN currently producing and marketing the following products: ? Mango, Orange and Pineapple juice, ? Pineapple slices, ? Orange, Apple and Litchi drink, ? Mushrooms, gherkin, mango, pineapple, lemon and orange squashes, ? Mango, mixed fruit and Pineapple jams, ? Orange and Apple jelly, ? Tomato ketchup, ? Mango, Olive, Chili, Garlic, Jujube and Satkora pickles ? White and Malted vinegar ? Rose Kewra flavored water, ? Mineral water ? Dehydrated Banana, Jackfruit, Mango and Pineapple. ? Full cream liquid Milk etc. 4) Present Activities of PRAN PRAN exports processed and semi-processed fruits, vegetables and mushroom products to U. S. A. , UK, France, Italy, Australia Germany, India, Nepal, and Bhutan etc. It is focusing heavily on export of their products to many parts of the world. PRAN has a state of the art modern food processing plant, which many other countries do not have today. PRAN has lots of loyal customers. Right now PRAN is producing 7000 to B cases a day. PRAN is setting u p a new machine, which will be able to produce 15000 cases a day and the total production will be 23000 cases a day. The quality control measures of PRAN are much stricter than any other company. PRAN is selling their products to Biman Bangladesh Airlines, Hotel Sonargaon and Sheraton and many other companies. This year PRAN has started production of snakes. They will also introduce confectionery products. They are planning to process aseptic bagging and storage juices for the local market. It is trying to tie up joint ventures with India to make PRAN plant in India and Nepal. PRANs target is to go out of Bangladesh and compete in the global level, which will bring foreign currency to our country. It has also several futures backward forward expansion plans like expansion of bottling, packing and tetra-pack line. It is also planning to set up 3000 MT capacity cold storage, potato cultivation, processing, freezing, pineapple plantation, export of mango, pineapple and tomato juice and paste, production of dairy milk products, set up poultry project, production of potato chips and French fries. (A) Steps in Selection Process 1. Getting Requisition of the Vacant Posts Prior to the selection process a requisition of the vacant posts is obtained from the CEO as per approved by the individual department heads. Then starts actual searching of suitable candidates. Internal search is done first, and if necessary then external search is done. 2. Raising Advertisement In case of internal search an advertisement of specified pattern (attached in the appendix) is circulated over the various department notice board. If no suitable candidates are found in internal search, an option of head hunting comes first. A sample notice of head hunting is also included in appendix. Then the company goes to advertise in the renowned national daily newspaper. Specifically, for mid level and top level management, the company directly goes to newspaper advertisement. The higher the position in the organization the more specialized the skills, or the shorter the supply of that kind in the labor market, the more widely dispersed the advertisement 3. Receiving Application Form Always more than adequate numbers of candidates submit application. These applications usually include the candidates name, letter address and phone numbers. PRAN Group doesnt provide these application forms. Applicants submit their curriculum vitae or comprehensive Personal profile with me application form. So the company gets a synopsis of what the applicants have been doing during their adult life, their skill and accomplishments. It is to note that PRAN Group doesnt bother about initial screening of selection process. 4. Short Listing the Candidates In PRAN Group during short listing, at first, a preliminary review of potentially acceptable candidates is made- Then the selectors are confronted with a number of potential candidates. Based on the curriculum vitae, job description, and job specification some of these respondents are eliminated- Factors that lead to a negative decision include inadequate or inappropriate experience or similarly inadequate or inappropriate education. For an example, how they make the short list of candidates we can mention that recently they seek a production manager having 5 7 years related experience. For this post several application forms were received. Among these one was such that the applicant is currently doing job in a project getting Tk. 50000 salary per month. He did his graduation from a British University having related job experience of 5 years. As the selection committee knows about the range of salary package, and considering other practical aspects they initially rejected that application form. 5. Preparing and Sending Interview Cards On receipt of application forms the short listed candidates are considered to receive interview cards. Specially, for mid4evel and top4evel management posts, interview cards are issued. These interview cards are usually sent in normal national postal service. Applicants are given no TA (transport allowance) or DA (day allowance). The company bears no responsibility of Accidentally missing interview cards. 6. Employment Tests Usually employment tests are designed for lower-mind and mid level management posts. These tests usually include intelligence, aptitude, ability, and interest tests. However, many of the general intelligence tests have a disparate impact on minorities. But, the company doesnt pay attention to alter the existing test procedure through validity testing. 7. Final Comprehensive Interview After employment tests being held, every individual candidate is taken to face a comprehensive interview. Since, in the PRAN Group, there is no initial screening interview; in this comprehensive interview the management describes the job in enough detail to the candidates so that whether they were really serious about the job. The management also bargains about salary range with the applicants. They check whether the applicant is willing to work at any place in the country where their office is available. In the PRAN Group, the final comprehensive interview the selection department officials, the Officials of the department that has vacant post(s) and an official of legal administration interview applicants. The interviewers try to probe into that hidden area of the applicants that cant be addressed by the application form of tests viz. ssessing ones motivation, ability to work under pressure, and ability to fit in with the organization. 7. 1 Modalities of Interview Process Usually the interview board comprises of 3/4 persons. Before the interview starts, interviewers are supplied with all the information of the candidates. This includes the curriculum vitae and the result of the written test. There are no predetermined criteria of evaluation or questions. Interviewers ask questions according to their indi vidual judgment. Interviewers together usually give a combined grade. That is, after the departure of a candidate from the room; interviewers discuss among themselves regarding the strong and weak points of the candidate and compare the candidate with other candidates. Finally, with the consent of other members of the board, the chairman of the interview board gives a final grade. That grade is considered as the opinion of the whole board. 7. 2 Features of Interview: The following features characterize the interview process, typically carried out in PRAN group. †¢ Qualifications evaluated. Through the interview process, it is tried to ascertain whether the applicant is serious to get the appointment. The management of PRAN Group does not want to face a situation where they select the best available person in terms of education, written test score and other qualifications; but who does not feel motivated to do the concern job. †¢ Interviewers. Interview board in PRAN Group typically consists of the representatives from HRM Department, representatives of the concerned department for which employee is being selected and sometimes representatives of the CEO. †¢ No training for the Interviewers. Interviewers are not given any special training for taking interview. It is assumed that since the persons taking the interview are related with the job (a senior official of the concerned department, for which appointment is being made is always present), so the selection would be flawless. †¢ No structured questionnaire: Interviewers ask different questions to different applicants using their discretion and experience. †¢ No standard score sheet. After departure of an applicant, chairman of the interview board discusses with other members of the board and they reach a consensus regarding a grade to be provided to the applicant. The chairman thus gives the final grade. 8. Making List of Suitable Candidates After having a comprehensive interview, the selection committee (headed by the responsible department head) makes a list of suitable candidates who may be selected finally. Specially, written test scores are given more weightage. If an applicant perform poorly in the final comprehensive interview, he still has opportunity to be selected depending upon his written test score. However, sometimes the selection committee selects candidate if the candidate perform very well during the interview. 9. Final Employment decision This crucial decision always takes the Chief Executive Officer of the PRAN Group. The CEO takes a list of suitable candidates from the selection committee (headed by the responsible department head) from which he selects the final candidates. The CEO may ignore the suggested candidate without showing any reason. Suppose, the selection committee has selected a candidate looking at her agile and intelligent performance during interview ignoring his poor performance in written test, the CEO can discard that candidate outright. However, the manager in the department that had the position should make the actual final decision open. The applicant will eventually work for this manager not for the chief executive officer and therefore a good fit between the boss and the employee is necessary- Moreover, if the decision of selecting that applicant will appear wrong the concerned department manager will be solely responsible. (2)Elements of Selecting Applicants The following elements are considered in selection process (1) Education of the candidate (2) Age of the candidate (3) Personality (4) Political involvement (5) Profession 6) Social involvement (7) Discipline (8) Work Experience (9) Reasons for changing Job (10) Pattern of the job change (11) Salary requirement (12) Reasons of applying (1) Introductions Every organization needs to have well-trained and experienced. People to perform the activities We have to be done. If current or potential job occupants can meet this requirement, training is not important. When this is not the case, it is necessary to raise the skill levels and increase the versatility and adaptability of employees- As jobs have become more complex, the importance of employee training has increased. The PRAN-Group is a conglomerate company and Wishes to be one of the top companies in the country as well as in the world; it needs highly skilled and trained employees. Realizing the importance of training, PRAN has set up a different department for training, named Training Department. (2) The Organogram of Training Department Though the training department is not a big one as other departments, it does a huge task every year. The head of this department is Chief Trainer and a Junior Executive assists him. This department is under direct supervision of Chief Executive Officer (CEO). Thus this department gets very importance within the group. The organogram of this department is shown bellow. (3 ) Training Need Assessment CEO Chief Trainer (PRAN-Group) Junior Executive Fig: Organogram of Training Department This is the vital part of training. Before designing training program it needs to assess the training It is surprising that there was no formal or planned training need assessment system in PRAN Group though they consider training as the vital part of the organization. Without prior assessment they used to do some pre selected training every years and years. Of course the training that they used to give is nevertheless less important yet it demands appropriate training needs assessment. This year they have realized the needs of assessment and accordingly have launched a training need assessment system. They have designed an assessment form to be filled up by various departments. From that form they will the areas of training needs and will design the training program accordingly- However they used to assess training needs by the following ways. (a) What are the organizations goals? (b) What tasks must be completed to achieve these goals? (c) What are the behaviors necessary to complete the tasks? (d) What are the deficiencies the employees have? (4) Formal Employee-Training Methods There are two types of training methods followed by PRAN. These are on- the-job training and off-the-job training. . 1 On-the-job Training The most widely used methods of training take place on the job. This can be attributed to the simplicity of such methods and the impression that they are less costly to operate. On-the -job training places the employees in an actual work situation and makes them appear to be immediately productive. It is learning by doing. For jobs that either are difficult to simulat e or can be learned quickly by watching and doing, on4heAob training makes sense. One of the drawbacks to on4heAob training can be low productivity while the employees develop their skills. Another drawback can be the errors made by the trainees while they learn. However, when the damage the trainees can do is minimal, where training facilities and personnel are limited or costly, and where it is desirable for the workers to loam the job under normal working conditions, the benefits of on-the-job training frequently offset its drawbacks. Apprenticeship Programs: Employees seeking to enter skilled trades to become, for example, special machine operators are often required to undergo apprenticeship training before they are accepted to journeyman status. Typically, this apprenticeship period is two to five years. In PRAN this period is for only six months. This period is often called Probationary period. During the apprenticeship period, the trainee is paid less than a fully qualified worker is. Job Instruction Training (JIT) This is one of the most systematic approaches to train employees. This program is usually carried out in the factories for those employees, who are in the operative positions. JIT consists of four basic steps: †¢ Preparing the trainees by telling them about the job and overcoming their uncertainties. The basic instructions are: o Breaking down the job o Preparing an instruction plan o Putting the learners at ease †¢ Presenting the instruction, giving essential information in a clear manner. The instructions are: o Telling o Showing o Demonstration o Explaining †¢ Having the trainees try out the job to demonstrate their understanding. The basic instructions are: ? Have the learner talk through the job. ? Have the learner instruct the supervisor on how the job is done. ? Let the learner do the job. Provide feedback both positive and negative. ? Let the learner practice. †¢ Placing the workers into the job, on their own, with a designated resource person to call upon should they need assistance. The basic instructions are: ? Checking progress frequently at first. ? Telling the learner whom to go to for help. ? Gradually taper off progress checks. 4. 2 Off-the-job Training Most of the training covered by this company is off-the-job training. Most of these training prog rams are conducted are in the premises of the training department and in the factory of the company. Sometimes the company arranges training outside the company. There are variety techniques that are followed to provide such training. The mostly used technique is classroom lectures. The other techniques are films, demonstrations, case studies and other simulation exercises. Classroom lectures This is well-adapted method to convey specific information-rules, procedures, or methods. Most of the off-the-job training programs are conducted by this method. Sometimes the use of overhead projector (OHP), films and demonstration make the session interesting. The lectures that are given are well structured and formatted. Mainly the chief trainer and junior executive trainer take these lectures. For some training programs the head of different departments also give lectures. These lectures mainly cover the detailed view of the respective departments. The department heads give information about the type of jobs, their internal organizational structure, and areas of responsibilities etc. After each day lecture an exam is taken to get the feedback from the employees. And at the end of the training session a comprehensive exam is taken and the evaluated score is send to the CEO for his consideration. Films PRAN is a large group and it is not an easy task for each employee to get the overall picture of the organizational structure and its activities. There is every possibility that many employees will be in the dark about their organization. Though it is not so much necessary for the employees to know about the whole organization to perform their duties, the vastness of the company may give the employees additional motivation and a sense of security of their jobs. Further more the understanding of the organization will help the employees to understand the organizational goals and their future plans. It will help the employees to be prepared mentally for the forthcoming challenges. With this view the training department arranges films show for the new entries. Demonstration Sometimes during the training session the trainees are asked to demonstrate the behavior on which they are being trained. As for example for sales training, trainees are asked to mockup the behavior that they will exhibit during sales for convincing the clients. This type of training removes the inertia of the employees and helps the employees to be friendly and free with other employees. This is considered as an important part of the training program. Case study Case study programs are usually done for those, who are in the managerial position. But these types of programs are very occasionally done. In fact the training department is not matured and equipped (qualified personnel) enough to arrange such programs. More over the training department concentrates mainly on employee training who will work in the field and in the factory. Training outside the company Sometimes the company arranges training programs outside of the company. These training programs are mainly for engineers. The engineers are sending to Institution of Engineers Bangladesh (IEB). Some top and mid level personnel are sending to Chambers. Because the personnel of the training department are not capable to provide such technical training. These training programs need fund and the, company is always ready to such funds. In one occasion the company sends an engineer to Japan for advanced special training. (5)Types of Training provided The training department arranges various types of training programs for different purposes and for different levels. There are some basic courses for all and some refresher courses. The detailed classification of the training programs is shown bellow. New employee training program This is the basic orientation program for the new management trainee for the head office. This is a three days program. Here the trainees are given a detailed @ about the total organization and usually conducted by different department heads. Mid management level training program This training is only for mid management level. The purpose of this training is to develop managerial skill and increase their job performance efficiency. Factory management training This is behavior- modification training and given to the factory supervisors. The purpose of this training is to modify the behavior of the supervisors to supervise the employees and to exhibit such behavior that are necessary to with co-workers to attain the desired production level. Sales training This training is for the employees of the sales department. The purpose of this training is to help the sales person to perform their work activities. This includes method of filling the sales form, the sales technique, the company sales policy, distribution channel etc. There is two of this type of training programs. They are: ? Basic sales course for new entries Senior sales management training ? Junior sales management training. Factory training There are two types: †¢ Factory union training †¢ Distribution loaders Factory union training: PRAN has labor union in its entire factory. To handle the unions the training department gives training to employees and supervisors. Any disruption in the production would hamper its market share. So the department g ives employees some behavioral modification training to have an effective and efficient employee union. Distribution loaders: PRAN has a very effective distribution network and skilled work force. To ensure smooth distribution the department frequently gives necessary training to its employees Store management training This training program is for store employees of factory and head office. Office assistant training This training is given to the employees, who work as office assistant. Distribution sales management training This is vital training as sales managers play a vital role for the growth of the company. This program mainly includes the techniques of sales decisions that are taken frequently on the spot by the managers. It also includes the making of future sales forecast for planning purposes. Material management training PRAN procure raw materials from inside the country as well as from outside of the country. It handles raw material which are highly perishable in nature such mango, tomato, orange pineapples etc. To handle such raw materials it requires special training. The training department provides such training to the employees who deal with material management. Supervisors training PRAN has a huge supervising force. It has sales supervisors, distribution and loading supervisors, factory supervisors etc. Depending on the type of works supervisors are given different training . Basic English course In the near future the training department is planning to introduce this course for management level employees. As PRAN is going into joint venture with some international companies, it is considering to preparing the employees to fit in the international business atmosphere. Further more, now English is required in all respects of office works. PRAN follows English in most its official works. But as our present education system doesnt ensure good command on English for the graduates, it is preparing to introduce English Course in training program. (6) Future Plan of Employee Training The training department is planning to need basis training instead of course basis. At present the department is offering different preset training programs for different employees. Sometimes it overlooks the real needs of the appropriate training. So the department has planned for offering need-basis training and for this it is preparing a systematic procedure for assessment of training needs. The idea behind this training is that though existing training programs are doing a lot for the development of the skills and behavior of the employees, it needs a change due to change in corporate culture and competitiveness among the organizations. The vision of this group is to be top organization in all respects. To cope its employees with all these change in the global business atmosphere it requires immediate review of all the present training programs. In this circumstance the company is planning to take a modem approach for its training programs. With this view PRAN is going for following need basis training. (1) Findings about Selection Discreet selection Process PRAN Group follows a discrete selection process that comprises of mainly application form, written tests, and comprehensive interview. Initial screening, physical examination, and background investigation are not in the selection process of PRAN Group. No Structured Interview Interview taken during the selection process is not structured. Interviewers ask questions according to their discretion. All the applicants are not asked the same questions. Final Employment Decision Final Employment Decision in PRAN Group is taken by the CEO. Reliability of Selection Tests There is no proof of reliability of the selection devices used in PRAN Group. Validity of Selection Tests In most cases there is no evaluation of the validity of selection devices in PRAN Group. However, in few cases, such as mid level management positions, content validity exists. Applicants of mid-level management positions are often given tests, which resembles actual job. Emphasis on Written Test The top management emphasizes most on written test. Person with poor performance in interview can expect to be employed if he / she had done well in the written test. But the reverse is not true. Variable cut score Cut scores in the selection tests are frequently changed considering the environmental change. If number of applicants is quite big relative to job openings, then a high cut-score is set. On the contrary, if number of qualified applicants is relatively low, then a moderate or law cut-score is fixed. No quota There is no quota system in PRAN Group for selecting an employee. The sole criterion of getting selected is ones qualifications. (2) Findings about Training Absence of Paper Training need Assessment No comprehensive system is there to determine the training need of the employees of PRAN Group. Training programs provided are determined by the traditional view about the training needs (e. g. employees need basic training course to know about the organization). With the changing circumstances, it is not possible for the management to know about the changing pattern of training needs of the employees well in advance. Diversified Training Program Training department of PRAN Group provides variety of training programs to cater the need of the employees. Employees are trained about desired behavior, about the Objective and operation Of the Organization; even they are trained on trade unions. Such diversified array of training programs is a plus point for PRAN Group as various types of training needs can be fulfilled using internal resources. Lack of Management Development programs Though there are ample scope and arrangements of training for employees, but the training opportunity for the managers is relatively low. Special and customized need of managers cannot be fulfilled by the training programs provided by the training department of PRAN Group. Poor Evaluation Of the effectiveness of Training Programs At present, sales volume and Annual Confidential Report are considered as an index to determine the effectiveness of a training program. 13ut there could e many reasons besides training, such as Provision of incentives, need for growth etc. which could have affected the sales volume or ACR of an individual. No mechanism is there to filter the effectiveness of training program alone. Moreover, in many cases the evaluation of the effectiveness is based fully on the subjective perception of individuals. Less Simulation Exercises Training methods employed in PRAN Group are mostly lecture-oriented. There is a dearth of simu lation exercises. Though limited opportunity of simulation exercises. Like mock sales by the sales representative or case study by the line managers are there in PRAN Group, but overall quantity of such training mechanism is low. (1) Recommendations About Selection Increase of Reliability and Validity of the Selection Devices No measure of reliability of the selection devices used in PRAN Group has yet been done. Validity of the devices is also very low. To enhance the possibility of choosing the right candidate, reliability and validity of the selection devices should be taken into consideration. For this purpose, advice of a management expert might be taken. Introduction of Structured Interview Interviews should be structured in order to have n increased reliability. A fixed set of questions should be presented to every applicant. Thus a more consistent and unbiased result might be reached. Avoidance of Prior information before the Interview Placing the curriculum vitae and scores of written test in front of the interview board beforehand causes a possibility of bias. This practice should be stopped in order to have unbiased result. Training of Interviewers Interviewers should know about how to take interview in order to select the suitable employee. Brief training might be provided to the interviewers for this purpose. Introduction of Realistic Job Preview In order to remove undue and inflated ideas of applicants regarding the job or the organization, realistic job preview should be emphasized. At present, there is no way that an aspirant employee can know about the problems and hardship associated with the job. If an employee knows beforehand about the negative points of the job and then join, then the possibility of turnover would decrease significantly. So, realistic job preview should be provided to the applicants. This may be done by providing brochures, or script made up of realistic statements that accurately portray the job. Introduction of Physical Examination Appearance always does not reflect the true health of an individual. So, a basic physical examination should be applicable to all new recruits just to ensure that they have the minimum qualifications needed to bear the stress of the workload. (2) Recommendations about Training Training Need Assessment To develop and implement an effective training program, it is important to know the areas where training is mostly needed. There should be specific mechanism whereby the management can know which type of training is needed by the employees and take action accordingly. The management can adopt any of the following methods to determine training needs: Observation and analysis of job performance, Management and staff conferences, Analysis of job requirements, Consideration of current and projected changes etc. Comprehensive Evaluation of Training Effectiveness No systematic and flawless evaluation method is followed in PRAN Group to evaluate the effectiveness of different training programs. Minimizing subjective perception, the management should try to evaluate the training programs quantitatively. While measuring the effectiveness of a training program, effort should be there to ensure that other factors besides training do not contaminate the final result. Experimental-control group method would be better to evaluate the training programs. Use of Simulation Exercises Simulation techniques are very effective for training, especially for management development. At present, the use of simulation techniques is not sufficient. More simulation techniques like, case study, decision games, and role plays should be used in order to make the training programs more effective. More Personnel for the Training Department At present, only two persons look after the training department. They have the responsibility to determine the training needs of employees, as well as to develop and implement the training programs. Though, experts of other departments often come to training department as instructor and this reduces the workload of the two personnel of training department to a certain extent; but still the departments need more personnel to carry out its operation smoothly. Inclusion of New Training Programs: Training programs provided by the training department of PRAN Group are not adequate enough to meet the changing requirements of the employees. To keep track with the fast moving corporate world and market economy, PRAN Group should introduce new training programs. APPPENDIX Bibliography Gary Dessier –7th Edition John . M. lvancevich—7th Edition Milcovich5th Edition M. Omar Ali –2nd Edition Ricky W. Griffin –7th Edition