Assignment (Research Report)

IDLC Finance Limited

Submitted by:

Ibrahim Khalil

ID: 1915216660

Submitted to:

Dr. M. Nazmul Amin

Human Resource Management

BUS 601

Section: 4

Date of Submission: 4th June, 2020

Table of Contents

1. Introduction: ........................................................................................................................1

1.1 History of the company: .................................................................................................1

1.2 Present Position: .............................................................................................................1

1.3 Products and Services: ....................................................................................................1

1.4 Market Share: .................................................................................................................2

1.5 Major Competitors: ........................................................................................................3

1.6 Objective of this Report: ................................................................................................3

2. Body of the Report ..............................................................................................................4

2.1 The HRM problems and issues are facing IDLC Finance Limited: .................................4

2.2 HRM approaches need to be taken to ensure ongoing strategic competitive advantage: ..8

2.3 HRM challenges will face by Non-Banking Financial Institutions in the 21st century: .. 11

3. Conclusion......................................................................................................................... 17

4. Recommendations: ............................................................................................................ 18

5. The implementation of recommendations: ......................................................................... 20

References: ............................................................................................................................ 25
 Executive Summary
The Assignment is the reflection of my learning acquired through my Human Resource
Management Course. IDLC Finance Limited is one of the fastest growing non-banking financial
institution of Bangladesh. HRM practices of IDLC Finance Limited is comparable to the good
international level organizations. IDLC’s practices is truly Human Resources centric. IDLC
Finance Limited recruits talents, value talents, provided them competitive advantages, creates
scope of work, nurtures talents and manage the talents for strategic development of the
organization. This report is divided into five parts. In the first place is introduction, here, I talked
about IDLC Finance Limited, their history, present position, products and services, market share,
major competitors. Also I talked about objective of the report in the introduction part. Secondly I
discussed elaborately three objectives in the body of the report. Here I discussed the HRM
problems and issues are facing by IDLC Finance Limited. Then I talked about HRM approaches
need to be taken to ensure ongoing strategic competitive advantage. After that I discussed about
HRM challenges will face by Non-Banking Financial Institutions in the 21 st century. Thirdly, I
gave short conclusion about previous discussion. In the fourth part I gave a recommendation
whatever I discuss in the body of the report. Lastly I have discussed the implementation of my
given recommendation. However, I tried my best to complete the report meaningfully and really
hopeful.
1. Introduction:

1.1 History of the company: IDLC Finance Limited is the first leasing company of Bangladesh
which commenced its journey in 1985. Its establishment was the collaboration and lead
sponsorship of different local and multinational financial institutions namely Finance
Corporation (IFC) of the World Bank, German Investment and Development Company (DEG),
the Aga Khan Fund for Economic Development, the City Bank Limited, IPDC of Bangladesh
Limited, Kookmin Bank, Korean Development Leasing Corporation of South Korea and
Sadharan Bima Corporation. Korean Development Leasing Corporation (KDLC), the largest
leasing company of the Republic of South Korea provided technical assistance for the
establishment of the company. The constant development of the company was ensured by the
exclusive organizational structure involving many financial institutions. IDLC was licensed as a
Financial Institution by the country's central bank in 1995. Along with the progression of the
company, the initial foreign shareholding of 49% was gradually being withdrawn. Finally, in
2009 the remaining foreign shareholding was bought out by the local sponsors. In the last two
decades, the company achieved a significant growth along with the country's growing economy.

1.2 Present Position: Over the years IDLC has been at the forefront of the financial services
sector. Their performance in the market as well as cooperation and strict adherence to
compliance issues have been repeatedly rewarded by several awarding bodies. For the past
decade they have constantly maintained their reputation not only with national bodies such as
ICAB and ICMAB, but they also maintain a reputed standing among institutions in the SAARC
region. IDLC Finance Limited won the First/Gold award consecutively for the third time in 5th
ICSB National award giving ceremony for Corporate Governance Excellence, 2017.

1.3 Products and Services: IDLC has different products and services.

 Corporate Division: Corporate Division provide quality service to financial institutions

across the country in financial matters. Amongst its diversified array of services lease
financing, term loans and financing options for capital expenditure etc. are mentionable.
Besides these this division of the company also offers Structured Finance (SF) solutions
which include corporate bond issuance and debt syndication.
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  Consumer Division: The Consumer division is focused in offering retail financial
services. Its financial products encompass Home Loan, Car Loan, and a small portion of
Personal Loan and Loans against Deposits. This division is recently enjoying highest
market shares and growth rates within the Home Loan industry of Bangladesh. This arm
of the company is also actively engaged immobilizing deposits through multiple retail
savings products with varying interest rates and maturities.
 SME Division: This division is dedicated to provide specialist lending to small and
medium-sized businesses across a broad range of industries including steel, cement, light
engineering, plastics and textiles, among others, geographically spread across
Bangladesh. This division provides a broad range of services e.g. term loans, working
capital loans and lease financing to satisfy diversified customer requirements. Moreover,
this division customizes their services if necessary. The division also supports and
encourages women entrepreneurship by providing them loans at attractive covenants.
 Capital Markets: IDLC Finance Ltd. accomplishes its capital market operations through
three of its wholly-owned subsidiaries-IDLC Asset Management Ltd, IDLC Securities
Ltd. and IDLC Investments Ltd. These subsidiaries provide all sorts of trading services to
their customers. Their robust trading facilities enable them to offer best execution
experience to their broad and diversified client base. Underwriting, primary issuance and
merchant banking are its other major services.

1.4 Market Share: IDLC Finance’s net profit after tax rose 1.42 percent year-on-year to Tk 55.8
crore in the first quarter of 2019. Its income per share hit Tk 1.48, up from Tk 1.46 in a similar
period the earlier year. Organization’s information shows annualized return on equity and profit
on assets have been 16.85 percent and 2.04 percent individually against 17.90 percent and 2.29
percent in the equivalent earlier period. IDLC’s standalone loan book is at present made out of
42 percent SME, 34 percent purchaser and 24 percent corporate portfolio. Nonperforming loan
proportion remains at 2.29 percent, when contrasted with 2.80 percent at the end of the same
period a year ago. In any case, capital market subsidiaries of the organization have detailed
decreases in net income year-on-year, generally on the back of lower levels of investment
income. Total number of outstanding securities of IDLC Finance are 377,050,780.

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1.5 Major Competitors: An organization in a similar industry or a similar industry which offers
similar product or service. The presence of one or more competitors can reduce of goods and
services as the organizations attempt to gain a larger market share. The revenue of IDLC Finance
Limited is $132 Million. The major competitors are -

 Lanka Bangla Finance Limited (Revenue: $84 Million)

 LOLC Finance PLC (Revenue: $352 Million)
 IMB Ltd (Revenue: $143 Million)
 Compartamos (Revenue: $750 Million)
 Pay Maya Philippines, Inc. (Revenue: $116 Million)
 AIMS Property Securities Fund. (Revenue: $115 Million)
 MBSL PLC (Revenue: $33 Million)
 Bank of Hawaii Corporation (Revenue: $642 Million)

1.6 Objective of this Report: The objective of the report is identifying the HRM problems and
issues facing by IDLC Finance Limited and also how they overcome those problems. Also
discussed about the challenges of Non-Banking Financial Institutions face in the 21st century.
This main three objective are:
 Identify the HRM problems and issues are facing IDLC Finance Limited.
 Find out the HRM approaches need to be taken to ensure ongoing strategic competitive
advantage.
 Analyze HRM challenges will face by Non-Banking Financial Institution in the 21st
century.

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2. Body of the Report

2.1 The HRM problems and issues are facing IDLC Finance Limited:
At every level HRM policies and practices for the shake of organizations as well as personal
development is being felt strongly. Humans are considered as a main power for the organization.
Regardless of the size of an organization or the extent of its resources, the organization survives
and thrives because of the capabilities and performance of its people. The activities to maximize
those capabilities and that performance are necessary regardless of whether the organization
refers to them as Human Resource Management. It’s high time for all organizations to recognize
that the real challenge for Human Resource Management is to lead the way on several strategic
fronts-development of formal systems for creating a “learning” organization, effective
deployment of human resources for maximum return to the company, and enhancing the
competencies of the workforce. Senior Management should take a much broader and strategic
view of the HR Function, using it to maintain or create new competitive advantages for the
organization. Ultimately, the HR management should be a major strategic player in how the
organization executes its overall strategic plan.

Rreater attention is paid to training related aspects because of rapid development of the human
development theory. Investment in human capital is any activity, leading to the improvement in
the worker’ quality (productivity) therefore training is an important part of investment in human
capital. (Rizvi, 2011)

Training is the systematic development of the knowledge, skills and attitudes required by an
individual to perform adequately a given task or job. (Armstrong, 2001)

Work-place culture and work-life balance policies and practices followed in industries in order to
promote employee engagement in their organizations to increase their employees’ productivity
and retain them. Work-life balance was key driver of employees’ satisfaction. (Susi and
Jawaharrani, 2011)

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Similar as other organization Non-Banking Financial Institutions use effective human resource
planning and practice, proper way of behavior conduct to its all employees and novitiate them to
work towards their goal. Not only does human resource manage payroll and leave requests, in
addition they also preserve company culture and oversee the employee’s complete lifecycle. In
short, human resource acts as a company’s moral compass in addition to keeping employees
well-trained, happy, and productive. But here to say, working in human resource poses distinct
challenges. Typically, these challenges come in the form of universal human resource problems
and solutions. They’re commonly found in all businesses to a few extent, whilst other business
may go through from extra deficiencies in certain areas. Some human resource problems are
universal. These perennial problems are ones that every human resource department will
encounter at one time or another. Other human resource problems are more specific and
localized. These challenges are those that are particular to Non-Banking Financial Institutions.
IDLC believes that it is humans who are critical to understand and motivate in the direction of
work. Though IDLC Finance Limited is leading financial organization in Bangladeshi
marketplace to compete and it as a very strong position the marketplace however it faces some
HRM problems. Here, some HRM problems and issues are facing by IDLC Finance Limited are
given bellow-
 Recruiting employees: As markets improve for employees and managers, companies
have to work harder to recruit and hold the pleasant employees. Businesses may have to
work to brand their employer as somewhere that accurate employees need to perceive
with and not just attempt to compete on income or benefits. Finding the right people is
enormously challenging. With more and more workers deciding to go it alone and work
in a freelance capacity and the digital marketplace offering multiple recruitment channels,
obtaining talent is perhaps harder than it has ever been. The rise of social networks has
created a vibrant, ever-accessible and most importantly a free platform on which to
search for new employees. Seeking out new people, promote it the position on services
and scout forums and groups for people who might make the grade. Far from being more
time consuming, this method of recruitment is actually rather enjoyable and addictive.
The best people are out there, and if organization sniff them out, they will save a
significant amount of time interviewing the wrong people. Furthermore, the recruitment
and selection process is another HRM problems and issues are facing by IDLC Finance

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 Limited. They prefers in house recruitment for most of the higher positions, mid-level
and top-level positions. IDLC prefers in house recruitment for maximum of the better
positions or mid-degree top-stage positions. If any vacancy takes place then they hire
from in house employees or to hire from their known sources rather than doing
recruitment from outside sources. Now a days there are lots of outside sources for hiring
employees, such as, campus recruitment, job fair and some trusted online platforms. So
that IDLC cannot in a position to hire a successful and effective person inside the precise
position. As a result, if they hair from in house, they cannot able to hire a capable and
effective person in the particular position.
 Training and development program: Training and Development is one of the main
functions of the human resource management department. Training refers to a scientific
setup where personnel are informed and taught matters of technical knowledge related to
their jobs. It focuses on teaching employees how to use precise machines or the way to do
specific duties to increase efficiency. Whereas, Development refers to the overall holistic
and educational growth and maturity of people in managerial positions. The process of
development is in relation to insights, attitudes, adaptability, leadership and human
relations. It is determined that IDLC Finance Limited has a problem in its training and
development program. IDLC Finance Limited arranges or practice various types of
training in their organization. Like, Foreign training, customized training, in house
training, and Public program. They set up lot of foreign training for top-level employees
only. They arrange these kinds of training by foreign trainers mostly from Malaysia,
Singapore, Bangkok, and USA which is a little bit costly due to the fact the total cost is
beard by the organization. In house training another training when the training arranges
inside the workplace premises for the employees. These training are run by the training
instructor from the organization. The organization generally hires those training
instructor on a contractual basis. It also seems a high priced aspect for the organization.
Their training and development program they are more focused on middle and top-level
employees to train rather than the general employees so that the top-level and middle-
level employees have more experience and more capable than the starting employees.
They layout general trainings for the general employees though they need to design
trainings in step with the employee's needs.

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  Attendance Management: Managing employee attendance is an important part of any
HR department’s day to day work. Organization want to know where their employees are
and how they’re using their time. With proper time and attendance management,
department of HR can eliminate costly inefficiencies and maximize employee
productivity. And while this may be a hard set of tasks, there’s technology out there that
could help. An attendance tracker is considered one of the best effective HR tools in this
regard. Attendance trackers have replaced the clumsy punch clocks of old with
sophisticated systems that generate and store important attendance information.
Moreover, this information can be exported easily into payroll systems and eliminate
traditional human error. Attendance trackers can also process other types of information
and show them in a number of convenient formats. IDLC Finance Limited has the
problem of daily attendance monitoring system because they are using employee’s
computer login time as their daily attendance. It may cause inefficiency because most of
the company counts their employee's attendance by fingerprint or ID card screening.
Furthermore, most of the time maximum employees are unaware of how to apply for
leave requests or how to download it from the system. There is a minimum tendency for
request leave application through the online system rather employees send emails to their
supervisor for leave approval. After that HR officer print out the email copy or took down
notes and in a while on adjusted in the system. But in maximum time employees failed to
view accurate casual leave status in system as the fully depend manual leave status.
Lastly, manual tracking of leave application, it may be the usefulness of the existing
attendance monitoring system.
Additionally, in a work place some time employees are getting bored by doing same kind of
work regularly. If the employees have lack of motivation in word place they are welling to
perform their job better. As well as, another thing is the inefficient monitoring system through
various departments because monitoring the employees is must doing work for any HR
department of any organization.

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2.2 HRM approaches need to be taken to ensure ongoing strategic competitive advantage:
IDLC Finance Limited is a big finance organization in Bangladesh. This organization is also
very important and influential in the industry. Human resource department is a basic part of
business now days. Of course, running a business this department has a lot of activities to do.
From IDLC Finance Limited’s HR department the organization is actually monitored and
controlled over time. Significantly, IDLC Finance Limited is operating for 25 years and have
grown. Identically all the details it is clear that to run an organization effectively and efficiently
it must have to do some HR jobs because the resource of an organization helps it to grow and the
effective use of the resource makes the organization to reach up to its expectations and
objectives. Following a number of HRM approaches the firm will able to ensure some
competitive advantages and work effectively as well.
 Technology: Today’s world is a world of technology and only those will survive who
may be updated with the technology. Technology elements are very essential because
they can create marketplace opportunities, performance of personnel' work, the work
environment is flexible because of the advancement of technology. IDLC Finance
Limited use a manual system for leave application and that’s why most of the employees
are not aware of how to apply for leave request or how to download pay slip from the
system. For that reason, the employee’s leave request could not able to merge with the
satellite gateway device. As HR office manual track down the leave request in paper and
adjusted the leave request in separate excel sheet. In short, it’s very difficult to track
down the things, as it's far obligatory to preserve the link among HR module and
attendance system is mandatory so it’s needed to upgrade the attendance software adding
automated leave management because of manual adjusting leave is raising the question
from the employees about the accuracy to the HR department. Moreover, it helps to boom
the organization’s performance.
 Different Sources of employee recruitment: It’s a difficult task to discover effective
and skilled people for a specific position. Recruiting an effective employee is a very
significant task of the HRM department on the grounds there are lots of things are
dependent on employees of an organization. IDLC Finance LTD always prefer to enlist
employees from in house sources or prefer hiring from internal recruitment. That is the
reason, sometimes they don’t able to hire the correct individual or deserving person for a

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 particular position, especially do it when they decide to recruit mid-level or top-level
employees. Therefore, it is needed to hire employees from various sources. There are
numerous sources of recruitment is by employee referrals, transfers and promotions,
walk-in and by the advertisements, campus recruitment, job fair, some online recruitment
platform , by giving posts in social media platforms like Facebook, LinkedIn, in their
official page. As a result, they will ready to get a good amount of CV of capable
candidates and ready to recruit the skilled one with a lot of experience. At the point when
an organization will enlist employees from outside sources then the company gets fresh
and expert experiences, a bunch of new thoughts, new techniques, and new strategies.
Consequently it’s better to hire or recruit employees from both internal and outside
sources.
 Work force empowerment: An organization that cultivates employee empowerment can
better recognize employees' contribution to the business, reward responsible ownership in
the workplace, support collaboration, including cross-departmental collaboration in the
workplace, foster a culture of employee engagement, embrace change such as digital
transformation. In managerial level empowered team leaders can get better support the
team and help each team member reach their targets, provide the information the teams
need when they need it, inspire and motivate employees, help better connect employees,
including the ones working remotely, facilitate work processes, spread team spirit in the
workplace, better communicate the business goals and long-term vision, make the teams
more successful. In the individual level, when employees feel empowered and trusted,
they are more willing to go the extra mile for the team and the business, take ownership
over their work, generate ideas, know how to take prudent risks to take the business to the
next level, find meaning and purpose at work, feel proud of the company they're working
at, feel more motivated and engaged. Human resources of IDLC Finance Limited is well
thought and flawlessly managed. Therefore if it is believed in an empowered workforce
and does not put their fingers in every part of the pie then this empowered environment
makes IDLC Finance Limited a better area for employees and the employees are not
suffocated with the authority but they are able to grow as the employer matures.

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 Strong Employee Bonding: IDLC Finance Limited employees are one of the significant
belongings of the organization and the employees have a significant role in the
organization. At the point when the employees are loyal and have strong bonding towards
the organization then employees will work efficiently automatically and try their level
best to achieve the organization objective. Also, the employees will deal with
organizations belongings like laptop, organization inward data, assets, etc. as well. HRM
department must need to present such methodologies routinely which can build the
employees step by step and the employees feel that they have a significant part and
assume a significant role in IDLC Finance Limited. The methodologies like appreciating
the employee in front of everyone for his successful work or introduce an employee of
the month or arrange small social get together with the team after the office or send a
token of love to employees in his own special occasions. IDLC Finance Limited
additionally can present a yearly magazine where organization accomplishments, journey
of efficient employees will be featured so that employees feel a strong connection with
the organization and also feel proud and a sense of belongingness towards the
organization. In this way, the strong organizational culture of the organization has a very
strong role to achieve organizational objectives.

 Leadership Development: Leadership is the capacity of an individual or a group of

individuals to influence and guide supporters or different individuals from an
organization. A good leader can lead their group and plan systems to accomplish
organizational objectives and goals. IDLC Finance Limited can present such projects by
an employee can build up their leadership quality. It is needed to create initiative quality
in any case employees don’t know how to give lead or oversee things or inspire
employees to get the best outcome from them so forth. A good leader can change the
department’s situation and guarantee competitive advantages for its organization.

 Effective Training and Development Program: Training is very effective factor in the
corporate world because it builds the employee’s proficiency and adequacy. Execution of
advancement plans are getting progressively recognized as fundamental components of
HRM and studies over a wide range of industries and sectors have all discovered a

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 positive relationship between investment in training and employee responsibility. IDLC
Finance Limited presents four kinds of training. There are Foreign training, customize
training, in house training, and Public program. Foreign training means whereas the
training program is directed in abroad. IDLC Finance Limited organizes a lot of foreign
training for the high-level officers and these kinds of training by the foreign trainers
mostly in Malaysia, Singapore, and Bangkok, USA. As a result, these trainings are
expensive and viable too. After the completion of the training program, the trainees come
back to Bangladesh and join the workplace. IDLC Finance Limited only presents this sort
of training program only for the top-level employees. Be that as it may, if the
organization arranges this sort of training for mid-level and top-level employees then the
organization employees will be more loyal and function their work more adequately.
Aside from that, the employees will be appreciative too in light of the fact that as we all
know Employees who have professional training experience and more job experience are
more skilled and knowledgeable and also have valuable to the market. IDLC Finance
Limited needs design training programs in such a manner where it is designed according
to the employees need and it won't be such a great amount of costly also. Since when
employees get the particular training where he or she has lacking then she or he satisfy
their obligations and responsibilities more effectively.

As can be seen, competitive advantage refers to factors that allow a company to produce goods
or services better or different than its rivals. An Organization has strong and effective
competitive advantages when the company is able to achieve its goals and execute its mission
and vision easily. In addition to, Modern Equipment & Technology, Different Sources of
employee recruitment Work force empowerment, Strong Employee Bonding, Leadership
Development, Effective Training and Development Program these kind of HRM approaches are
needed to be taken to ensure ongoing strategic completive advantages.

2.3 HRM challenges will face by Non-Banking Financial Institutions in the 21st century:
Human Resource Management area extracted its underlying foundations from organizational
psychology field of study and end up being a significant practice for coping with organizations.
In an organization, HR has emerged as an important strategic companion, and the control of the

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same has turned out to be a challenging undertaking for HR managers. Now a day, the role of
human resource management departments has come to be essential for twenty-first-century
modern-day businesses. Organizations that try to continue their serious edge, both at present and
later on require human power well furnished with recent strategies and innovations to face the
modifications and upcoming difficulties of 21st century. HRM is certainly one of the features of
management that endured exceptional theatrical changes inside the new millennium. HRM
managers’ are confronting an assortment of difficulties because of expanded globalization, most
recent creation methods, and change in clients' requests and corporate rebuilding. HR
administrators are battling hard for holding ability, satisfying multicultural workforce needs, and
streamlining of employees. There is a need to build up an adaptable workforce to fulfill the
changing needs of 21st century. One of the crucial activities for HR managers is the HR
planning. Regarding the HR capabilities of the 21st century, the companies have altered from the
background to becoming the vital differentiator in organizations. The HR roles have taken a new
dimension within the twenty first century especially after globalization.

21st century approach of HRM is to utilize the knowledge and expertise of people efficiently and
effectively to meet organizational targets (Wong & Snell, 2003).

In today’s era, organizations are coming across various challenges about 21st century human
resource; that includes employing new technology, globalization, everyday innovations, political
as well as economic instability and ethical & ecological challenges (Theunissen, 2007).

It is vital to remain well versed with not only environmental changes but also technological
shifts. One of the biggest challenges today for HR personnel is to develop employees in
accordance to global environmental factors as well as international marketplace (Andersen,
Cooper, and Zhu, 2007)

In the view point of Decenzo and Robins (2001) and Gary Dessler (2000) the most vital
challenges of HRM, are technology, E commerce, and work force diversity, and globalization,
ethical consideration of the corporation which might also at once or indirectly affect the
employer aggressive advantages, particularly with technological development have an effect on

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recruitment, education and development and job performance with terrific extent can be have a
look at in the organization.

Globalization approach the existing float of goods, services, capital, ideas, facts and people. It
manner the motion of these things without the use of any human resource. In this modern
business world, markets have turn out to be battlegrounds where both the home and foreign
competitors try and seize as maximum marketplace shares as possible. Such globalization is a
task for HRM. However without human resource they don't have any value due to the fact, an
employee is knowledgeable and skilled, who allows an agency in going aggressive gain over
other and permit a business to compete the overseas market and to make investment. Therefore
all the HR Managers make several strategies to develop and keep such human resource, due to
the fact Human Resource is the resource which makes a company successful inside the field of
globalization.

In Non-Banking Financial Institution HR is at the center of the business affairs in the 21st
century. They are giving a high-quality effort to enlist and hold the best ability. Without having
gifted individuals locally available, it is hard to accomplish the authoritative targets. In any case,
from recruiting to maintenance and execution the executives, there are a few difficulties that the
HR managers face while attempting to deal with their HR proficiently. HR issues can be
profoundly testing and can here and there lead to raising HR costs. It is the reason initiative and
the HR managers must concentrate on making arrangements that drive worker inspiration and
employment fulfillment. In spite of everything, the HR managers regularly come across
challenges that have an effect on organizational productivity. The difficult HR circumstance can
be tended to best by planning. Probably the most widely recognized difficulties HR managers or
organizations face are related to worker morale, attrition, teamwork and working environment
clashes. On the off chance that the managers can effectively address these issues, it could cause
higher productiveness and lower HR costs.

In addition to that, there are some HRM challenges of Non-Banking Financial Institution which
will being faced by way of 21st century HRM-

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 Multi-Generational Workforce: One major challenge human resources department’s
face is serving multiple generations who fall under various age groups within a single
workforce. These generations are classified as Baby Boomers, Baby Busters, Generation
X, and Generation Y staff members may work in the same organization, often with
differing needs, expectations, and strengths. Generation X and Y born people are known
to be better aware about technology and they like to apply new techniques of working.
They prefer to adopt new philosophies and they are considered to be innovative, while
baby boomers & boomers feel comfortable with their traditional ways and they do not
like to come out of their comfort zone. It is important for an organization to preserve each
sets of people, as both categories are equally important to organizations success. Placing
greater emphasis on proper work-life balance, they will be motivated by learning
possibilities and fantastic feedback. To keep those employees, human resources
departments must be prepared to respond to these needs.

 Technology: The new technologies bring to human sources (HR) of modern

organizations. It examines the technological implications of the last adjustments taking
place and the way they have an effect on the control and motivation of human sources
belonging to these organizations. It seems for methods to recognize and perceive how
organizational HR, individually and as a team, conceptualize, invent, adapt, outline and
use organizational technology, as well as how they may be constrained by means of
capabilities of it. Human sources management and technological demanding situations
and changes inside the subject of industry, commerce and services. Manual or paper
based systems may appear cost-effective, the truth is inefficient or inadequate HR
technology wastes valuable workers time and energy. It also can lead to costly errors or
even fines when wage and hour rules aren’t followed. There are some different assets
which might be physically owned by using the people but Human Resource as an
essential asset has no actual ownership. The most effective way to broaden and preserve
such human sources is create such an environment which compete them to live within the
business organizations and it's far a main challenge for HRM.

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 Globalization: Globalization approach the existing float of goods, services, capital,
ideas, facts and people. It manner the motion of these things without the use of any
human resource. In this modern business world, markets have turn out to be
battlegrounds where both the home and foreign competitors try and seize as maximum
marketplace shares as possible. Such globalization is a task for HRM. However without
human resource they don't have any value due to the fact, an employee is knowledgeable
and skilled, who allows an agency in going aggressive gain over other and permit a
business to compete the overseas market and to make investment. Therefore all the HR
Managers make several strategies to develop and keep such human resource, due to the
fact Human Resource is the resource which makes a company successful inside the field
of globalization.

 Flexible work hours: Time has become more flexible as we moved into 21st century,
that's a large undertaking for HR department. Due to the advancement of technologies
and many different reasons, people now-a-days favor to work from home. The internet
has given birth to virtual world and 24/7 market place. Although flexible work
arrangements have tremendous benefits but at the same time it is going to increase the
level of stress on management & & personnel that must be dealt nicely via 21st century
managers. Even in the situation of recent pandemic, flexible work hours and work from
home can improve retention efforts, augment organizational variety efforts, inspire
ethical conduct and help the organization's efforts to be socially responsible. Employers
enjoy cost savings, improved attendance and productivity, and an increase in employee
engagement. Promoting organization culture & Workforce Diversity are another HRM
challenge is the workforce diversification. The organizations today are having
heterogeneous workforce; workforce diversification approach to correctly manage the
workforce that come from different backgrounds with admire to regions, cultures, race
and gender. Diversity is the biases individuals in the organization may have about others
similar to or different from them. This is largely a bent to stereotype, which considerably
narrows the worldview of the people inside the organization. The customs and cultural
norms of employees and ensure that they don’t violate important cultural rules.
Communication can be especially challenging in the interpersonal arena. Poor cross-

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 cultural communication can lead to employee misunderstandings or place of work
inefficiencies. In this modern business world, every business organization conducts the
business activities in different countries. Organizations adopt several strategies to
compete in the foreign markets through people. In this regard to manage such diverse
human resources effectively, business organization adopt and make the rules and
practices according to the culture and environment.

There are lot more others HRM challenges will face by the organization in 21 st century.
Recruiting a workforce that reflects today's reality is another challenge for human resources
departments. Leadership development, HR effectiveness measurement, Career development &
growth, organizational effectiveness aware another types HRM of challenges. Recruitment &
selection is extremely important for 21st century managers to broaden their view of judging
people on the basis of their origin, culture, values, ethnicity and background. It will be also a
HRM challenges. Here the most of the challenges faced by the HRM in 21st century are,
retention of the employees, multicultural workforce, women workforce, retrenchment of
employees, change in the demand of the government, technology, globalization, initiating the
process of change, business ethics and values, strategies for motivation & retention, striking
work life balance, Industrial relations, organizational effectiveness, change management, e-
commerce, health and safety, learning and development, Recruitment and skill labor, succession
planning, and compensation.

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3. Conclusion
In recent years, Human Resources issues have gotten vital to business consultations in this ever-
changing business environment. Today's most successful organizations perceive primary concern
effect of the rising HR practices. Effective Human Resources Departments are upgrading
themselves once in a while to pull in, develop and retain talents. It is obvious that effective HR
practices deliver shareholder return much higher than those of companies without such practices.
It is important for HR professionals to familiarize with HR best practices to build organizational
capabilities in conveying maintainable outcomes. There are a lot of problem related Human
Resources Departments such as recruitment, turnover, performances etc. Moreover, Human
Resources Departments try to solve their problem by maintaining some strategy. When they get
the problem of performance they arrange training facilities for the employees. The main motive
of Human Resources Departments is quality management to improve the company’s
performance, maintain low cost, and induce better output. In a sort, Human Resource
Department is one of the most discussed & influential department in the organization.

There are some challenges and issue of HRM, those are particular to Non-Banking Financial
Institutions. IDLC believes that it is humans who are critical to understand and motivate in the
direction of work. Though IDLC Finance Limited is leading financial organization in
Bangladeshi marketplace to compete and it as a very strong position the marketplace however it
faces some HRM problems like, recruiting employees, training and development program,
attendance management, and inefficient monitoring system. DLC Finance Limited’s HR
department monitored and controlled identically all the details to run an organization effectively
and efficiently it must have to do because the resource of an organization helps it to grow and the
effective use of the resource makes the organization to reach up to its expectations and
objectives. HRM approaches the firm will able to ensure some competitive advantages and work
effectively as well. Moreover, there are some HRM challenges for Non-Banking Financial
Institution which will being faced by way of 21 st century like, multi-generational workforce,
technological improvement, impact of globalization, flexible work hours.

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4. Recommendations:

 They should upgrade the daily attendance monitoring system because they are using
employee’s computer login time as their daily attendance. It may cause inefficiency
because most of the company counts their employees attendance by finger print or ID
card screening. For improving the efficiency of the Human resource department, it
needed to be upgrade otherwise accuracy will not be obtained.
 In 21st century Managers must understand the customs and cultural norms of employees
and ensure that they don’t violate important cultural rules. It is the role of the managers to
change the existing organizational culture to one of diversity and inclusion.
 With the flexible work arrangements, the HR professionals need to monitor regularly the
successes in numerous projects and challenges faced at some stage in the period. This can
assist to take better measures regarding flexible work preparations in future.
 The organizations should prepare their human resources people well keeping in view the
global environment or market place to ensure competitive advantage. Human resource
manager will have to build or developed such a frame work that allows. There are many
factors contributing to HR manager’s functions and these activities are constantly
changing. By keeping in view the entire situation, the organization’s HR department is
continuously being transformed as well.
 However without human resource organization have no value because a workforce is
knowledgeable and skilled, who facilitates a company in gaining competitive advantage
over others and enable a company to compete in the foreign market and to make
investment in not only in a domestic market but also in foreign markets. Therefore all the
HR Managers come up several strategies to develop and retain such human resource,
because Human Resource is the tool which makes an organization successful in the field
of globalization
 HR department must be much sophisticated than their predecessors. Because an
international or multinational organization cannot perform their activities well when their
HR manager knows the diversity of technique to hack it with these issues and to how they
can prepared an unobjectionable force for the organization to face the rapid competitive
business word and to operate in the situation.

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 The HR managers need to find methods for coping up with conflict timely. They have to
act as a mediator and must quickly respond to the conflict before it results into a drastic
damage to an organization. The HR manager has to be a skilled communicator, as clear
and transparent communication plays a vital role in conflict resolution. Sometimes HR
managers are expected to explain the code of conducts to employee to handle employee
complaints and sometimes they act as a liaison between employers and labor unions to
resolve the conflict among parties.
 HR department need to be trusted advisers to the businesses and leaders they work with.
They need to be effective coaches and remain aware of their critical role as to effectively
assess workforce capabilities and enable planning for future needs. HR must be focused
on becoming a trusted advisor to their business to empower managers to drive improved
organizational performance.
 Organization try to attract and keep talented and hard-working people in the organization;
managing globalization, Information Technology, business control, Information-workers
and info-management.
 Should introduce new forms of talent acquisition like campus recruitment, apprentice
program etc. to recruit the right talent. Evaluation of candidates while recruiting should
be more competency based & evaluator’s accountability should be increased.
 Job Rotation should be introduced so employees can learn different tasks & maximize
their skill of knowledge. Enhanced delegation of work at every level for their
development to the next level.

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5. The implementation of recommendations:

In fact, solving the issues is one of the human resource’s most important functions. If not
handled properly, human resource problems can stifle innovation, create large-scale group
conflicts, and drag down efficiency. Avoiding these difficulties is especially important in today’s
fiercely competitive market. So the thing is, need a constant parade of infighting and other
disruptions. It’s for the reasons and more that human resource departments are so important in
the contemporary workplace.

 Time and Attendance Software frequently comes as a good expansion or even a total
swap for participation check in/check out frameworks. For instance, if there should arise
an occurrence of utilizing slide card frameworks, workers may pass cards to their
associates and be missing from the workplace simultaneously. Likewise, participation
registration/registration frameworks don't record any data about employees being inactive
or dynamic at work. In the event that employees taking a shot at PCs, Time and
Attendance Software can fill the two needs-active/idle time recording and participation
observing. Also Time and Attendance Software is considerably more moderate than
check-in attendance frameworks.

 Maybe the best asset accessible to any organization is the workforce it procures and
holds. As an organization stretches out its base to a remote shore, the effect of that
globalization on HR procedures will reach out to current laborers and furthermore to new
workers. The HR division should expand backing of its ebb and flow staff, as they move
abroad to new positions. Help with visas, work allows, and lodging will be required, just
as preparing in social issues and maybe language securing. New neighborhood ability
must be obtained and created, too. An organization's capacity to move into new markets,
will rely upon its capacity to fill needs with talented specialists. In certain circumstances,
nearby laborers may meet the models, however in different circumstances, they might be
all the more searching for gifted and as of now prepared workers to be moved to positions
in the new abroad area. For this situation, the readiness of workers to become portable
could be a key factor to profitability.

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 Flexible work arrangements is a business technique that can help employers recruit and
retain talented employees. Flexible work arrangements can lead to greater work-life
balance, which in turn may lead to greater employee satisfaction, fewer unscheduled
absences, increased retention, enhanced individual performance and increased business
productivity. Flexible work arrangements are a variety in where a job is performed or the
time the work is performed. The following are some examples of flexible work
arrangements. Teleworking is routinely working one or more days per week at a location
that is not the consistently allowed work environment. Flex-time is varying an
employee’s schedule on a regular or non-regular basis while still completing the required
forty out of each week. Compressed work week is working more hours on some days of
the week to complete the required forty hours/week in less than five to eight hour a days.
It can be apply by the HR department in this way for the organization.

 Conscious advances and activities should be taken inside the organization to empower the
conjunction and flourishing of heterogeneous gatherings. Dealing with a differing
workforce gives the best outcomes for the organization. They need to guarantee the
organization’s general practices and strategies are comprehensive of everybody and don't
support or segregate a specific arrangement of employees. Pioneers and supervisors ought
to urge and be eager to take criticism on practices and arrangements from employees and
be prepared to make changes where they're seen hindrances for specific gatherings in the
workforce. Giving assorted variety preparing to the workers, particularly those in
initiative positions, assists individuals with comprehension and regard the distinctions in
religion, race, ethnicity, social qualities, sexual orientation, and thinking styles. Decent
variety preparing assists r employees with turning out to be mindful which assumes a
basic job in helping them comprehend their own preferences, generalizations, and social
inclinations. Perhaps the greatest test of dealing with a differing workforce is
guaranteeing there is clear and powerful correspondence all through the organization. To
guarantee everybody is in the same spot, ensure that all the employees see all the
methodology, approaches, security rules, and some other significant data. Work to
guarantee that social and language hindrances are beaten when speaking with the r
employees.

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 Practically all organizations are embracing new tech. This pattern isn't going anyplace
soon, really, it's relied upon to proceed with its positive move into changing how
organizations work in the cutting edge world. Here we take a gander at the significant
applications that smooth out office profitability alongside some cutting-edge innovation
that is set to change the work environment. There are a few components that can be
utilized in the working environment to adapt to innovation. Innovation permits
individuals to discuss adequately with associates everywhere throughout the world. The
presentation of 'virtual workplaces' basically permits individuals to work anyplace over
the globe and adaptable working is getting progressively increasingly acknowledged by
managers. Distributed computing is an innovation that permits the act of utilizing a
system of remote servers to store, oversee, and process an organization’s information,
instead of on a reason PC or server. Cloud stages are intended to move your organization
into the advanced universe of adaptable and remote working, expanding efficiency and
execution in your business. The outcome is an IT situation that guarantees security and
dependability. There likewise a few components like Microsoft 365, The Power of Voice,
Security, Immersive Technologies, Micro learning, there ought to embrace by the
workers. Innovation is a quickly changing and developing space. Organizations ought to
completely grasp innovation and new progressions to smooth out current attempting to
benefit from their workers. The eventual fate of work will develop as new advancements
become possibly the most important factor.

 The outside Recruitment process alludes to the way toward topping off opportunities in
the association by recruiting new workers from the outer work advertise. As individuals
remain longer in an association, they start adjusting to one another's thoughts. Though
this is generally excellent for the gathering elements, as they will in general have less
debates and differences, it gets hard for such a reverberation chamber to produce
extraordinary thoughts. Subsequently, outer Recruitment gives you access to new
personalities that will achieve creative thoughts from outside the association. This will
help spruce up your business in the present serious condition. As examined before, one of
the primary inconveniences of the inside Recruitment process is the set number of
contender to new positions. Outer recruiting, then again, conquers this issue as it

22
 acquaints chiefs with a more extensive pool of candidates with an assortment of abilities
from which they can pick. With presentation to numerous applicants, you can
undoubtedly think about and select the best fit for the required position. Advanced
workers for the most part need broad preparing to be reasonable for their new obligations.
Outside enlistment process, actually, guarantees choosing those competitors who are
progressively experienced, profoundly talented, and for the most part a solid match for
the required positions. By the by, they may require some direction and essential preparing
projects to acquaint them with the workplace

 There are numerous advantages to a multi-generational workforce. Blending proficient,

prepared veterans in a field close by the new vitality of a more youthful workforce can
receive huge rewards for organizations. Advancement and new information about
innovation brought by more youthful specialists can help make working environments
progressively proficient. Interestingly, laborers who have been around some time can
give insight and direction to the vocation improvement of the more youthful generation.
Besides the ordinary difficulties that accompany fluctuating degrees of development and
experience, issues can emerge with varying desires and correspondence styles. Being set
up for the issues ahead of time can assist you with being better. Age Z (conceived
somewhere in the range of 1995 and 2015) has experienced childhood in the "consistently
on" time of cell phones, satellite TV, and the Internet. Thus, they may put more
concentrate on correspondence through email and content rather than eye to eye
correspondence. In the meantime, about 40% of Millenials (conceived somewhere in the
range of 1981 and 1995) confess to investing more energy in their telephones than in eye
to eye cooperation with others.
The individuals who haven't grown up along these lines might be slanted to shake their
heads and marvel what the world has come to, while more youthful ages probably won't
see an issue with this sort of correspondence. Rehearsing up close and personal
discussions and the demonstration of being available during a connection, particularly in
the working environment, can go far towards making companions and ensuring your
message is running over adequately. As indicated by an investigation by Holmes Report,
work environment mistaken assumptions cost organizations $37 billion. Inferred

23
information is increased through close to home understanding and hard to impart by
means of the composed word. This sort of data is most straightforward common in eye to
eye correspondence, yet generational inclinations and solace level may make this kind of
correspondence troublesome. These boundaries can be overwhelmed by rehearsing casual
chitchat both inside and outside of work, looking, and figuring out how to be available at
the time. Here is a territory where Generation Z and Millenials may have the high
ground. Utilizing innovation to impart in the work environment has gotten perpetually
significant, particularly in the period of Covid-19. Telecommuting has made innovation
obligatory as applications like Slack, Zoom, and heap others are utilized to assist workers
with teaming up outside of the workplace.
Conveying adequately through innovation may present troubles for more established
specialists who incline toward calls or vis-à-vis correspondence. Just 18% of Baby
Boomers accept that innovation makes their lives simpler, while 74% of Millennials
figure the same. Technology hindrances can be overwhelmed by tutoring between ages.
More youthful laborers may have bounty to share about innovation, however more
established specialists have the same amount of data that others can profit by also. Age Z
representatives overwhelmingly express that they accept they ought to get an
advancement following a time of working, and 60% plan to work up to an administration
position. Then, 49% of Millennials plan to leave their bosses inside the following two
years, referring to an assortment of protests, for example, absence of chance for
progression, absence of learning openings, and disappointment with pay.
It's somewhat trickier to set out desires, however, valuing every representative for what
they bring to the table may go far in keeping them fulfilled in their position. Of workers
who are cheerful in their occupations, 77% expressed that their administrators center on
their qualities. People born after WW2 are known for being diligent employees who are
eager to coach others. Age X representatives are resolved to work-life parity and worth
proficiency, while Millennials are free and worried about work environment morals. Age
Z, the most up to date laborers on the scene, are learned about innovation, and effectively
adjust to changes. Every age carries their qualities to the working environment, and by
gaining from one another and concentrating on qualities as opposed to shortcomings, you
can effectively incorporate all ages for a balanced workforce.

24
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