HRpolicy and Procedures July 2007 V1

8/6/2019 HRpolicy and Procedures July 2007 V1

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Human resources and

training policy and

procedures

Ref:DTDS/17052007/HRD/HRpolicy

ABC Afghan microfinance institution

Headquarters in Jalalabad


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Table of Contents

Introduction...............................................................................................................................7Organisation chart.....................................................................................................................8

Chapter I.Ethical chart..............................................................................................................9

1. ABC values ....................................................................................................................................91.1Quality..........................................................................................................................................................9

1.2Continuity.....................................................................................................................................................9

1.3Affordability.................................................................................................................................................9

1.4Dignified Treatment.....................................................................................................................................9

1.5Protection from Unethical Practices...........................................................................................................10

1.6Truthful Information..................................................................................................................................10

1.7Privacy and Fair Disclosure.......................................................................................................................10

2. Conflict of interest .......................................................................................................................102.1Hiring family members..............................................................................................................................10

2.2Extent of service.........................................................................................................................................11

3. Non-competition clause ..............................................................................................................11

4. Anti-discrimination policy ..........................................................................................................114.1Gender equity.............................................................................................................................................11

4.2Ethnic and tribal equality...........................................................................................................................12

4.3Disability policy.........................................................................................................................................12

5. Anti-harassment and corruption policy ....................................................................................125.1Prevention of harassment ..........................................................................................................................12

5.2Prevention of corruption ............................................................................................................................12

Chapter II.Recruitment policy and procedure........................................................................13

1. Job description ............................................................................................................................131.1Chief Executive Officer (CEO)..................................................................................................................13

Mission of the position...............................................................................................................................13

Major objectives.........................................................................................................................................13

Tasks and responsibilities...........................................................................................................................13

Skills ..........................................................................................................................................................14

Education and experience...........................................................................................................................14

1.2Finance & administration manager (FAM)................................................................................................15

Major Objectives........................................................................................................................................15

Tasks and responsibilities...........................................................................................................................15

Skills...........................................................................................................................................................15Education and experience...........................................................................................................................16

1.3Credit Operations Manager (COM)...........................................................................................................16


Task and responsibilities............................................................................................................................16

Skills ..........................................................................................................................................................17


1.4Human resources and training officer (HRTO)..........................................................................................17



Skills ..........................................................................................................................................................18


1.5Risk officer.................................................................................................................................................19

Major objectives.........................................................................................................................................19Task and responsibilities............................................................................................................................19


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Skills...........................................................................................................................................................19

Background and experience.......................................................................................................................20

1.6Provincial branch manager ........................................................................................................................20



Skills...........................................................................................................................................................21

Background and experience.......................................................................................................................211.7District branch manager ............................................................................................................................21



Skills...........................................................................................................................................................22


1.8Accountant.................................................................................................................................................22



Skills...........................................................................................................................................................23


1.9MIS officer ................................................................................................................................................24


Task and responsibilities............................................................................................................................24Skills...........................................................................................................................................................24


1.10Loan officer..............................................................................................................................................25

Major objectives ................................................................................................................................... ..25


Skills...........................................................................................................................................................26


1.11Provincial accountant and MIS assistant (PAMA)..................................................................................26



Skills...........................................................................................................................................................27


1.12Driver.......................................................................................................................................................27Major objectives ................................................................................................................................... ..27


Skills...........................................................................................................................................................27


1.13Guard........................................................................................................................................................28

Major objectives ................................................................................................................................... ..28


Skills...........................................................................................................................................................28


1.14Cook.........................................................................................................................................................28



Skills...........................................................................................................................................................29Background and experience.......................................................................................................................29

2. Recruitment procedure ...............................................................................................................292.1Needs identification....................................................................................................................................29

2.2Recruitment committee .............................................................................................................................30

Composition...............................................................................................................................................30

Objectives and responsibilities...................................................................................................................30

2.3Recruitment process...................................................................................................................................30

Step 1 - Define needs: task and person......................................................................................................30

Step 2 Source candidates.........................................................................................................................30

Step 3 Review applications.....................................................................................................................31

Step 4 Application of the HR policy concerning conflict of interest......................................................31

Step 5 Testing .........................................................................................................................................31Step 5 Interviews.....................................................................................................................................32


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Step 6 Reference......................................................................................................................................32

Step 7 Make a decision............................................................................................................................32

Step 8 Make an offer...............................................................................................................................32

Step 9 Contracting & probation period...................................................................................................33

3. Filing procedure ..........................................................................................................................33

Chapter III.Compensation policy and procedures.................................................................33

1. Salaries .........................................................................................................................................331.1Salary scale.................................................................................................................................................33

1.2Salary calculation.......................................................................................................................................34

Loan officers..............................................................................................................................................34

Other staff...................................................................................................................................................35

1.3Taxes calculation........................................................................................................................................35

2. Benefits ......................................................................................................................... ...............362.1Insurance....................................................................................................................................................36

2.2Leave..........................................................................................................................................................36

2.3Transportation allowance ..........................................................................................................................36

3. Incentive scheme .........................................................................................................................37Definition of ABC staff incentive scheme......................................................................................................37

ABC strategic goals....................................................................................................................................37

Why to implement a staff incentive scheme in ABC?...............................................................................37

Staff incentive scheme objectives..............................................................................................................38

Design of the incentive scheme ......................................................................................................................39

Key principles of ABC incentive scheme..................................................................................................39

Team incentive...........................................................................................................................................39

Individual performance measurement parameters for loan officer............................................................40

Bonus calculation for loan officer..............................................................................................................41

Cost/Benefit analysis..................................................................................................................................47

Performance measurement parameters for manager..................................................................................48

Bonus calculation for manager...................................................................................................................48

Cost/Benefit analysis..................................................................................................................................49Testing of the incentive scheme .....................................................................................................................49

Sample........................................................................................................................................................50

Timeframe..................................................................................................................................................50

Success criteria of the pilot test..................................................................................................................50

Before to start the pilot test........................................................................................................................50

Make a decision and implement.................................................................................................................50

Presenting the incentive scheme to the staff...................................................................................................50

Monitoring the incentive scheme....................................................................................................................51

Temporary incentive scheme..........................................................................................................................51

4. Evaluation of the new compensation scheme ............................................................................534.1Global compensation per staff level ......................................................................................................53

4.2Comparison with previous salary scale......................................................................................................544.3Comparison with Afghan microfinance market.........................................................................................55

4.4Potential financial benefit of the incentive scheme....................................................................................56

Chapter IV.Working hours and leaves...................................................................................56

1. Working hours ............................................................................................................................56

2. Leaves ..........................................................................................................................................572.1National holidays........................................................................................................................................57

2.2Paid leave...................................................................................................................................................57

2.3Maternity leave...........................................................................................................................................57

2.4Sick leave...................................................................................................................................................57

2.5Funeral leave..............................................................................................................................................58

2.6Hadj leave...................................................................................................................................................582.7Leave without pay......................................................................................................................................58


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2.8Excess in leave .............................................................................................................................. ......... ..58

Chapter V.Disciplinary and termination procedure...............................................................58

1. Objectives ....................................................................................................................................58

2. Key principles ..............................................................................................................................59

2.1Fairness.......................................................................................................................................................592.2Confidentiality............................................................................................................................................59

2.3Natural justice............................................................................................................................................59

2.4Equal opportunities....................................................................................................................................59

3. Disciplinary procedures ..............................................................................................................59Disciplinary committee...................................................................................................................................59

Necessity for investigation..............................................................................................................................60

Disciplinary hearing........................................................................................................................................60

Notification of Outcome..................................................................................................................................60

4. Progressive disciplinary actions .................................................................................................60Oral warning....................................................................................................................................................61

Written warning...............................................................................................................................................61

Suspension.......................................................................................................................................................61Termination.....................................................................................................................................................61

Chapter VI.Performance appraisal.........................................................................................62

1. Objectives ....................................................................................................................................62

2. Principles .....................................................................................................................................622.1Fairness principle.......................................................................................................................................63

2.2Transparency principle ..............................................................................................................................63

2.3Objectivity..................................................................................................................................................63

2.4Constructiveness.........................................................................................................................................63

3. Appraisal committee ...................................................................................................................63

4. Appraisal type and frequency ...................................................................................................644.1Probation period performance appraisal....................................................................................................64

4.2End of contract performance appraisal.......................................................................................................65

4.3Bi-annual performance appraisal...............................................................................................................65

5. Appraisal factors .........................................................................................................................66

6. Follow-up on appraisal ...............................................................................................................68

Chapter VII.Training policy....................................................................................................68

1. Employees development policy .................................................................................................68

2. Training needs assessment .........................................................................................................69

3. Individual request for training ...................................................................................................70

4. Cost of training ............................................................................................................................70

5. Time-off for Training .................................................................................................................70

6. Training plan ...............................................................................................................................706.1Training plan for support staff (driver, guard, cook).................................................................................71

6.2Training plan for PAMA............................................................................................................................71

6.3Training plan for Accountant.....................................................................................................................72

6.4Training plan for MIS Officer....................................................................................................................72

6.5Training plan for loan officer.....................................................................................................................73

6.6Training plan for district branch manager..................................................................................................74

6.7Training plan for province branch manager...............................................................................................75

6.8Training plan for risk officer......................................................................................................................76

6.9Training plan for HRTO.............................................................................................................................77


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6.10Training plan for Credit Operations Manager..........................................................................................78

6.11Training plan for Finance and Administration manager..........................................................................79

6.12Training plan for Chief Executive Officer...............................................................................................80

7. Training evaluation .....................................................................................................................81

Annex.......................................................................................................................................83

1. Request for staff form .................................................................................................................83

2. Salary calculation model for Loan Officer ................................................................................84

3. Application evaluation form .......................................................................................................85

4. Interview Assessment form ........................................................................................................86

5. Example of test ............................................................................................................................87

6. Contract template .......................................................................................................................89

7. Total compensation per month ..................................................................................................94

8. Salary scheme of other MFIs ......................................................................................................95

9. National holidays .........................................................................................................................96

10. Performance appraisal form ...................................................................................................97

11. Training needs assessment form ..............................................................................................98

12. Training quality assessment form ..........................................................................................99

13. Assessment of employees participation to training .............................................................100


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Introduction

An elaborate Human resources policy and procedures manual is in place to regulate all mattersrelated to human resources management. It addresses all aspects of human resource administration,

management and development and governs all categories of ABC employees.

Financial and administration, Credit and Operations and internal control policies supplement HumanResource policy as additional internal controls in the institutions day to day operations.

ABC thrives on a culture of merit and professionalism along with the culture of commitment to ABCsocial vision and missions of alleviating poverty through the provision of financial services to poor ruralhouseholds. Ethics, social commitment, discipline, responsibility and efficiency constitute every onesdaily obligation while at work; and are the institutions primary requirement and expectation of everyindividual staff.

ABC HR policy and procedures manual aims to give clear guidance in recruitment, compensationperformance assessment, ethical principles, trainings, work organisation, disciplinary procedures

These procedures are reflecting ABC culture and objectives of providing a quality service to the ruralpopulations. They also aim to guaranty that human resources are managed with equity and fairnessand according to employees merit.

These procedures and policy apply to all ABC staff without exception and their application will becontrolled by the management committee and the risk officer. Any infraction to their application will besubject to a disciplinary procedure.

It is the responsibility of Human resources and training Officer to propose amendment of these policyaccording to the organisations development. The management committee should be consulted for thisprocess. All changes on procedures and policy should be reviewed and approve by the board ofdirectors.

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Board of directors (7 members)with a majority of members from XYZ (4)

Chief executive officer

MIS officer

Risk officer

Financial and administration manager Credit operations manager

Human resourcesand training officer Accountant

Branchmanagerprovince

Loan officers

PAMA

* The provincial accountant and MIS also reportsto MIS officer and Financial and administrationmanager** The Chief Executive Officer with the Finance &

Administration Manager and Credit OperationManager and the Human Resources andTraining Officer form the ManagementCommittee.

Board of Supervisors (XYZs DOPand head of evaluation department)

Branchmanagersdistricts

Loan officers

Organisation chart

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Chapter I. Ethical chart

1. ABC values

ABC values results from its vision to: alleviate poverty and improve the living conditions of vulnerablecommunities in Afghanistan, with particular emphasis on rural areas and the Eastern region, byproviding financial services and capacity building adapted to their needs.

This vision involves a mission of service to the Afghan poor rural population, aiming to improve theirlivelihood by offering adapted financial services while building their capacity. Therefore, this vision leadsto a number of values that ABC aims to respect both in its relationship with the clients and in themanagement of its human resources.

1.1 Quality

ABC believes clients deserve respectful, fair, and flexible services that are attuned to their needs andsupport positive developmental change in their lives. Clients should be given an opportunity to providefeedback (confidential, as appropriate) on the services they are receiving so that those services canmore closely meet their needs. Indeed ABC believes that clients are the main source of information onthe products quality and therefore it is crucial to take into consideration their satisfaction.

In the same way, ABC aims to provide a good work environment to its employees and should thereforebe opened to their suggestion to improve this work environment.

1.2 Continuity

ABC believes poor people need access to financial services over time to manage their families life-cycle needs. ABC is committed to promoting sound practices (such as operational sustainability, savingreserve) that support sustained services.

Through ensuring the sustainability of the organisation for the clients, ABC also aims to sustain theemployment of its staff. Convinced that a good staff is the condition to achieve its vision and mission,ABC aims to establish a long-term relationship with its employees and therefore to avoid job insecurity.

1.3 Affordability

ABC believes poor people can optimize the benefits of financial services only if they can afford them.

ABC is committed to promoting responsible governance, management authority, field supervision,appropriate incentives, and internal controls that contribute to efficient and affordable services.

1.4 Dignified Treatment

ABC recognizes that institutions engaged in provision of financial services should be fair, disciplined,and respectful. ABC is committed to promoting policies, practices and oversight mechanisms that affirmthe dignity of clients, are respectful of cultural and gender differences, and prevent abusive loancollection practices.

While recognizing the clients right of dignified treatment and therefore promoting these practices among

the staff, ABC also recognizes this right for its staff who are considered as a partner in the achievementof the institutions goals and therefore are considered as an asset that should be treated well.


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1.5 Protection from Unethical Practices

Because poor people are particularly vulnerable to predatory and unethical practices, ABC has a specialcommitment to promoting practices that ensure poor people receive protection from illegal, unethical,discriminatory, and deceptive service.

In the same way, ABC commits to protect its staff against unethical practices from their colleagues orsupervisors.

1.6 Truthful Information

ABC believes clients deserve complete, accurate, and understandable information regarding the termsof financial services, including costs of borrowing and transaction services. ABC is committed topromoting practices that ensure clients have the information they need to make informed decisions.

ABC also commits to transparency with its staff, providing truthful information to them about theinstitutions development and the policies implemented.

1.7 Privacy and Fair Disclosure

ABC believes service providers need to safeguard the personal information of their clients. ABC opposedisclosure of personal information without client knowledge and consent.

In the same way, ABC will not disclose information about its employees without their knowledge andconsent except in the case of civil or criminal offence.

2. Conflict of interest

The HR policy aims to prevent any conflict of interest that could occur in Human ResourcesManagement. This policy on conflict of interest intends to protect the employees from discriminationsbased on social or familial networks and to prevent the use of the institution to achieve personalinterests.

2.1 Hiring family members

ABC strictly prohibits to hire employees who have a family link to any of the current staff. This applies todirect members of the family (father, mother, brother, sister, cousin, niece, nephew, uncle and aunt) andindirect members of the family (family in law: father, mother, brother, sister, cousin, niece, nephew,uncle and aunt). There will be no exception in this rule. It is the responsibility of the candidate to declareits affiliation to another employee, however the HR department should check this affiliation through

provision of birth certificate and genealogy of the applicant and should reject the application if any linksare found.

More distant family relations such as second degree cousins can be tolerated provided that the relationis clearly declared by the employee and the applicant. However, if the relationship is with one memberof the recruitment committee, this member of the recruitment committee should be replaced by anotherperson. The two persons having family relations should in no case have a hierarchic relationship withinABC.

In case of infraction to these principles, disciplinary measures will be decided by the disciplinarycommittee. This will be consider as a serious offence to ABC policies.

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4.2 Ethnic and tribal equality

Afghanistan is populated by different ethnic groups and tribes. There are a strong code of honour andcultural tradition of solidarity within these groups and tribes which often leads to the use of wasita1 inwork environment to get employment, favours, better treatment

Nevertheless, ABC commits to offer equal treatment to all people without considering ethnic groups andtribes membership. Indeed it intends to reward employees merit and not their membership to a group.

In the same way, ABC commits to offer the same access to employment to these different groups,without favouring any of them. To do so, ABC forbids the mention of ethnic group during the recruitmentprocess.

In case of infraction to these principles, disciplinary measures will be decided by the disciplinarycommittee. This will be considering as a serious offence to ABC policies.

4.3 Disability policy

ABC commits to offer equal treatment and opportunities to disabled people. To do so, ABC will propose

specific measures to facilitate disabled peoples access to employment such as desk position foremployee with limited movement ability or adapted working hours for people following a course oftreatment.

The disability can be mentioned during the recruitment process to envisage the required measures tofacilitate the employees integration, but should in no case been used to reject an application.

In case of infraction to these principles, disciplinary measures will be decided by the disciplinarycommittee. This will be consider as a serious offence to ABC policies.

5. Anti-harassment and corruption policy

5.1 Prevention of harassment

ABC firmly commits to prevent harassment within its organisation. This includes both mobbing(psychological harassment) and sexual harassment that one person in a position of power could imposeto his/her subordinate. This means that a supervisor direct or indirect can not require sexual favouror make any inappropriate comments to a subordinate. In the same way, ABC strictly commits toprevent psychological harassment which means that a supervisor would exert an inappropriate pressureon his/her employee that can be qualified as abuse of power.

In case of evidences of harassment, a termination procedure will be begun against the employee.

5.2 Prevention of corruption

ABC is strictly committed to the prevention of corruption within the organisation. This applies to all itsactivities: in relationship with clients, but also within the organisation for relationships betweenemployees.

Corruption is here defined as a behaviour on the part of persons in which they improperly enrichthemselves or those close to them by misusing power with which they have been entrusted. In short,corruption is the misuse of public power for personal gain. In ABC it could take the form of payment ofmoney against promotion, against increase of salary, against provision of loan

ABC will react firmly against any case of corruption by a termination procedure after investigation

procedure.

1 Wasita : social connections

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Chapter II. Recruitment policy and

procedure

1. Job description

These job descriptions should be revised frequently by the HRTO in order to keep them updatedaccording to ABC needs of development. Job description of management committee should bedesigned and reviewed by the Board of Directors.

1.1 Chief Executive Officer (CEO)

Level: Chairman of management committee and consultative member of the board of directors

Accountable to: Board of directors

Supervision of: directly all the members ofthe management committee (financial and administrativemanager, credit operation manager, human resources and training officer), risk and security officer, MISofficer, and indirectly all the members of the institution.

Deputy: the FAM will be his deputy in case of unavailability to carry out his duties.

Mission of the position

- The CEO is the person responsible to implement the vision/mission expressed by the board ofdirectors into practical decisions.

- The CEO is the person responsible to manage the institution on a day-t-day basis and to achievegoals and plans.

- Finally the CEO is accountable to the board of directors and the donors for financial and operationalmanagement.

Major objectives

- The CEO is responsible for the development of an Afghan Microfinance institution providingfinancial services to poor rural communities.

- The CEO translates the vision into practical and achievable goals, business plans and action plans.- He/She provides clear leadership and direction to the organization, implementing the business and

action plans and achieving them.- He/she is required to direct and control the operations of the institution, and shall coordinate and

supervise the activities of its various provinces and branches, in accordance with the policies,

approved business plans and instructions of the Board of Directors- He/She ensures an efficient human resources management and controls the application of humanresources procedures to guaranty the fairness and equity.

- He/She is accountable for the transparency in internal and external communication ofachievements, accounting documents and financial statements.

- He/She represents the institution in an official capacity as well as in civic, social and community-oriented activities that promote goodwill for the institution especially with donors, banks, governmentrepresentatives and any other relevant stakeholders

- He/She insures the development and sustainability of the institution both in a financial andoperational perspective

- He/She insures the compliance with Afghani laws and regulations regarding microfinance activities

Tasks and responsibilities

- The CEO is in charge of reporting to the board of directors and donors (or investors) about theperformance and development of the institution especially by submitting to the Board of Directors

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periodically quality reports on the performance, financial condition, and general affairs of theinstitution;

- He/She is in charge of the coordination with XYZ regarding all potential partnerships that could benecessary for the development of ABC

- He/She is in charge of communicating to the team the decisions of the board and to implement withthem the business plans and action plans

- He/She is in charge of orchestrating the actions of the various departments within the institution andthrough job descriptions, goals setting and performance appraisal make sure that responsibilities

and objectives are clearly defined to achieve corporate goals- He/She is in charge of the management of the team: motivation, organisation, establishment of

standards to measure the performance of the institution and its various departments and branches;- He/She is accountable for the existence of appropriate internal controls- He/She serves as the authority for employee relations and personnel matters; as per approved

policies, has authority for all hire/fire decisions, compensation and disciplinary actions and theircompliance with ABC approved internal regulations;

- He/She continually assesses the legal and operating environment, including trends in the industry inAfghanistan, and makes recommendation to the Board of Directors

- He/She conducts periodic monitoring visits to the field, ensuring clients satisfaction and competitiveedge in the market, and that all procedures are being followed

- He/She makes sure that microfinance good practices are adopted by ABC- He/She should plan and prepare the succession for all the key staff with a particular attention for the

management committee- He/She is the ultimate responsible for the protection and the security of the people and assets of

ABC

Skills

- Integrity and transparency- Willingness and capacity to take responsibilities- Knowledge about microfinance and about management of an organisation- Strong management and leadership capacities- Initiative and independence- Ability to manage staff in a team work spirit- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable.

- Strategic thinker able to make plans and to map out the institution strategy- Ability and willingness to go to the field in the Eastern Provinces- High flexibility

Education and experience

- University degree preferably in economics, finance or administration desirable- Very good command of English, Pashto is necessary and Dari is desirable- The CEO should have a relevant experience in the banking or financial sector (microfinance

institution would be a clear advantage)

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1.2 Finance & administration manager (FAM)

Level: Member of the Management Committee

Reports to: Chief Executive Officer

Directly supervises: Accountant, Province Accounting and MIS assistants, and the branchmanagers for all financial matters

Major Objectives

- The Finance and Administration manager (FAM) makes sure that ABC has the financial resourcesto achieve its mission

- The FAM sets and recommends for higher approval the policies and procedures in the followingareas:

Management of assets and liabilities

Accounting

External auditing

in accordance with local rules and regulations; Administration

- Together with the CEO, he /she manages the relationship with donors and investors- He/She reports regularly to the Board, the CEO, donors and investors and other authorities as

appropriate on the present and planned financial situation of ABC- In cooperation with the Credit & Operations Manager, he/she ensures preparation of annual plans,

quarterly & monthly plans, budgets etc- He/She provides excellent service to user of administration- He/She is with the CEO the ultimate guarantor for the sustainability- He/She is the deputy CEO in case of his/her unavailability to carry out his/her duties

Tasks and responsibilities

- He/She ensures that all information from the Department goes out on time and is accurate,particularly monthly, quarterly and annual reports and that financial statements are properlyconsolidated

- He/She provides management reports (Balance sheet, income statement, Cash flow statements,others) to the CEO and the members of the management committee to be used as managementtools, and to the Board of Directors

- He/She establishes cash and liquidity management principles and ensures proper segregation ofcompulsory savings. He/She carefully follows liquidity position

- He/She manages financial relationships with donors and investors, and the financial community atlarge

- He/She approves all investments in excess of US $ (to be determined) with the institutionalsustainability in mind

- He/She supervises the Administration function and ensure that cost/benefits analyses are used

- He/She insures all the assets of the institution with appropriate insurance companies- He/She provides managerial and technical support to ABC personnel in matters managed by the

Department- He is in charge of ABC premises & equipments management, directly for the HQ and through

branch managers at district level.

Skills

- Thorough knowledge of finance and accounting- Good understanding of IT- Ability to delegate while keeping appropriate control- Teamwork- Willing to take initiatives- Negotiating abilities- Precision and sense of details and well organised- Good listener

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- High flexibility


- University degree in economics, finance or management- Prior experience in microfinance or banking or audit firm or similar- Very good command of English and Pashto is necessary and Dari is desirable

1.3 Credit Operations Manager (COM)

Level: Member of Management Committee

Reports to: Chief executive officer

Supervision of: all provincial managers, branch managers and indirectly loan officers

Major objectives

- The Credit Operations Manager is responsible for the implementation and fulfilment of strategicgoals of the organisation through day-to-day management of microfinance operations

- The COM is responsible to propose strategic decisions to the CEO concerning the development andgrowth of the institution, especially in terms of regional and branch expansion and credit products

- He/she is in charge of the compliance of operations with procedures of the institution, legalregulations and strategic plans approved by the Board

- He/She is in charge of the supervision of operations at the provincial and branch level to maximizethe effectiveness and efficiency of branch operations and distribution network

- He/she is accountable for clients satisfaction among others by insuring the ad equation betweenproducts and demand

- He/She is accountable for the portfolio quality

Task and responsibilities

- He/She plans and manages activities of microfinance operations to ensure that goals and objectivesare accomplished in a timely manner and as per financial projections

- He/She participates jointly with the CEO to the elaboration of the strategy, credit policy formulationand procedures development

- He/She participates actively in products development together with senior management staff andeventually technical advisor

- He/She ensures and controls the implementation of the credit operations according to adoptedpolicies

- He/She is responsible in collaboration with the HRTO to ensure the staffs development,management, performance appraisal, training, motivation

- He/She performs regular site visits (both to the field offices and client business sites) to ensure

proper and timely provision of microfinance services and to keep in touch with the field reality- He/She investigates and resolves any issues/problems related to clients and field operations in

collaboration with relevant field staff- He/She prepares quality reports on portfolio quality, growth and any information that could be

necessary for reporting to the board and to donors (or investors)- He/She is responsible for supervision of accurate and timely flow of finances for Microfinance

Operations, coordinating with FAM (monthly planning with Branch Managers, ensuring correctnessand appropriateness of all operations expenditures)

- Together with microfinance operations staff, he/she identifies problem loans and deficiencies andproposes/implements necessary corrective actions.

- He/She generates and analyses the different ratios on portfolio quality, profitability, staffproductivity in order to take informed decisions

- He/She is in charge of carrying out regular surveys of the competition and to deal with the

competition at the local level if necessary.- He/She represents ABC in all microfinance related forums (such as AMA, MRRD meetings)

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Skills

- Integrity and transparency- Excellent communication skills- Knowledge about microfinance is a requirement- Well organised person- Strong management skills- Attention to details

- Credit skills- Good analylitical ability- High flexibility- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable- Ability and willingness to go to the field in the Eastern Provinces


- University degree in economics, finance or management- Prior experience in microfinance or banking- Very good command of English and Pashto is necessary and Dari is desirable

1.4 Human resources and training officer (HRTO)

Level: Member of management committee

Accountable to: Chief executive officer

Supervision of: in medium term, will have an assistant

Major objectives

- The Human Resources and Training Officer develops strategies and strengthen systems tocontinuously align HR systems to the organization's mission and vision

- The HRTO is in charge of the joint management of existing staff with the members of themanagement committee and the recruitment of ABC staff

- He/She is in charge of the personal development of ABC staff- He/she insures the harmony and the motivation of the staff and commitment to the institutions goal


Recruitment- In collaboration with the Credit Operations Manager and Financial and Administration Manager, the

HRTO assesses the needs for new employees and designs a job description with the relevantstakeholders

- He/she evaluates the best recruitment sources (media) to post job announcements

- He/she sets-up the recruitment process and does the follow-up for the entire process with therelevant persons (direct supervisor of the future employee, CEO): selection of CV, tests,interviews, recruitment committees

- He/she is in charge of the orientation of each new employee in order to facilitate his/her integrationto the institution.

Administration of Human resources- He/She is responsible for payroll administration- He/She determines the compensation of each employee in collaboration with the members of the

management committee- The HRTO establishes files on each employee gathering all relevant information (CV, minutes of

interview and meetings, evaluation forms, pay slip)- He/she establishes a performance assessment system that will then be carried out by the

respective managers/supervisors- He/she reviews and update the HR policy frequently

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- Based on the regular performance assessment made or the possible complains by the FAM &COM, he/she manages disciplinary measures to be taken against the staff and eventually proceedto dismissal, upon approval from the CEO

Planning- He/She should keep looking for person with high profiles that could potentially assume key positions

for the development of ABC- He/she keeps posted on the evolution of the Afghani microfinance sector in terms of Human

Resources (especially for salary benchmark)

Development and training- He/She assesses frequently the training needs of the staff by two different ways: 1. directly with the

concerned employee, 2. more globally with all the stakeholders of the department- According to the needs assessment, he/she prepares a training plan that should try to meet both

individual and institutional development needs.- In collaboration with relevant actors (COM, FAM, CEO and technical assistance providers), he/she

implements the training plan- He/she evaluates the trainings provided and the impact of the participation of the staff to these

trainings- In accordance with specific and punctual technical needs, he/she identifies external training

resources and assesses other training opportunities (donors, NGOs...) that could meet the needs

Skills

- Integrity and transparency- Good communication skills and diplomacy- Ability to work upon request of senior management without decision making power- Knowledge about microfinance would be an advantage- Skills in administration and organisation- Well organised person- Ability to manage staff in a team work spirit- Good analylitical ability- High flexibility- Knowledge about Afghanistan is a requirement and knowledge about Eastern region is desirable

- Ability and willingness to go to the field in the Eastern Provinces


- University degree- Very good command of English and Pashto is necessary and Dari is desirable- Experience in human resources or similar field

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1.5 Risk officer

Level: Senior Management Staff

Reports to: Chief Executive Officer and to the Board of Directors

Directly supervises: no one (at least in the short term)

Major objectives

- He/She identifies the risks1 ABC is exposed to, recommends, puts in place, applies a set of policiesand controls mechanisms to cover/limit these risks

- He/She makes sure that security measures are in place and implemented to assure a properprotection of the people and assets of ABC


Internal Control

- He/She prepares and then update a manual of control of procedures- He/She establishes an annual control plan (with calendar)- He/She sets-up a chain of control at all levels and controls its implementation- He/She makes sure the principle of separation of duties (authorization, execution, control) is applied

wherever necessary and feasible- Personally or by delegation, he/she ensures that the following types of control are implemented:

1. Routine controls2. Localized inspection missions on well defined subjects3. In depth control mission on yearly accounts

- He/She reports deviations to the Board of directors with suggestions of corrective actions- He/She discusses audit reports with heads of departments to take corrective actions and sensitizes

appropriate stakeholders- He/She assists the external auditor and implements his recommendation for the internal control of

the institution- He/She assists the Board of Supervision in its mission of control and supervision by providing allnecessary information

Security- In coordination with the authorities and XYZs direction committee, he/she establishes security

policies and procedures and update them as required- He/She ensures that security policies and procedures are widely advertised and adhered to- He/she provides advice to the senior management regarding critical security issues

Skills

- Natural authority- Independent- Capacity to resist pressure and stress- Diplomacy- Precision and attention to details- Curiosity- Good command of English and Pashto is necessary and Dari is desirable- Good analylitical skills- Ability and willingness to go to the field in the Eastern Provinces- High flexibility

1 Risks : impairment of assets, accounting, systems, liquidity, Foreign Exchange and raterisk, credit, fraud

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Background and experience

- University degree- Good command of IT- Prior experience in accounting or audit or surveillance- Knowledge of internal control principles and of microfinance products

1.6 Provincial branch manager

Level: Management Staff

Reports to: Credit Operations Manager and FAM for financial matters

Directly supervises: Loan officers and the PAMA

Major objectives

- Under the supervision of COM the branch manager is responsible for operational, financial andadministrative tasks within the branch

- The branch manager is responsible for the development, the supervision and the control of all theactivities within his branch.

- The branch manager ensures the implementation of rules and procedures of the institution and thefulfilment of the plans set-up by the management team


Management- The branch manager provides his/her collaboration for the elaboration of the institution plans

(operational and financial)- The branch manager is in charge of the implementation of ABC plans (operational and financial) at

the branch level by translating general objectives and plans into individual plans- The branch manager is responsible for the reporting both financial and operational to the

Headquarters on weekly and monthly basis- The branch manager is in charge of setting-up individual objectives for loan officers according to the

branch objectives set-up by the COM, and to supervise and evaluate them towards these objectives- He/She is in charge of the on-job training of the loan officers and other permanent employees of the

branch- He//She participates in the recruitment of new staff assigned to the branch- He/She is responsible for solving problems at the branch level, with the support of the COM and the

rest of the management team if required- He is in charge of the branchs premises & equipments management.- the management of security at a provincial level in direct and close collaboration with the risk officer.

In this framework, he/she has full authority upon the provincial staff to take the last decision on anymatter related to security (especially for field trips)

Operations- The Branch manager has to make sure that credit policies and procedures are understood and

applied by LO and that controls are in place for the proper execution of these policies andprocedures.

- He/She is chairing the loan approval committee and gives the final decision for it.- He/She is in charge of controlling the data base entry made by the MIS/accountant assistant- He/She is in charge of visiting clients in order to ensure the quality of the loan officers work and the

clients satisfaction and the compliance of credit policies- He/She is representing of the institution in an official capacity as well as in civic, social and

community-oriented activities that promote goodwill for the institution with local authorities incollaboration with the CEO

Financial management- He/she should ensure that the financial objectives set for his branch are met and that variances are

explained

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- He/She is in charge of controlling the entry in the accounting system by the MIS/accountantassistant

- He/She is in charge of approving the expenditures of the branch up to 200USD and to request theapproval from the headquarters for upper amount.

- He/She is in charge of cash management (fund request according to forecast) within the branch incollaboration with headquarters

- He/She is coordinating the branches at the provincial level for all matters related to cashmanagement, accounting and MIS. In this framework he/she will be supervising the PAMA

Development- The branch manager is in charge of the canvassing for new markets both geographically and in

terms of new products- The branch manager is in charge of the groundwork with local authorities to develop ABC in new

areas- The branch manager is in charge of gathering information about clients satisfaction and needs

Skills

- Integrity and transparency- Natural authority- Team work spirit- Good relational qualities

- Ability to take initiatives- Knowledge about microfinance is a requirement- Ability and willingness to go to the field in the Eastern Provinces- Ability to solve problems


- Prior experience in microfinance- Primary education and basic knowledge of algebra- Fluent in Pashto and basic knowledge of English- Basic knowledge of computer (Word and Excel)

1.7 District branch manager

Level: Management Staff

Reports to: Credit Operations Manager and FAM for financial matters

Directly supervises: Loan officers

Major objectives

- Under the supervision of COM the branch manager is responsible for operational, financial andadministrative tasks within the branch

- The branch manager is responsible for the development, the supervision and the control of all theactivities within his branch.

- The branch manager ensures the implementation of rules and procedures of the institution and thefulfilment of the plans set-up by the management team


Management- The branch manager provides his/her collaboration for the elaboration of the institution plans

(operational and financial)- The branch manager is in charge of the implementation of ABC plans (operational and financial) at

the branch level by translating general objectives and plans into individual plans- The branch manager is responsible for the reporting both financial and operational to the

Headquarters on weekly and monthly basis

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- The branch manager is in charge of setting-up individual objectives for loan officers according to thebranch objectives set-up by the COM, and to supervise and evaluate them towards these objectives

- He/She is in charge of the on-job training of the loan officers and other permanent employees of thebranch

- He//She participates in the recruitment of new staff assigned to the branch- He/She is responsible for solving problems at the branch level, with the support of the COM and the

rest of the management team if required- He is in charge of the branchs premises & equipments management.

Operations- The Branch manager has to make sure that credit policies and procedures are understood and

applied by LO and that controls are in place for the proper execution of these policies andprocedures.

- He/She is chairing the loan approval committee and gives the final decision for it.- He/She is in charge of controlling the data base entry made by the MIS/accountant assistant- He/She is in charge of visiting clients in order to ensure the quality of the loan officers work and the

clients satisfaction and the compliance of credit policies

Financial management- He/she should ensure that the financial objectives set for his branch are met and that variances are

explained

- He/She is in charge of controlling the entry in the accounting system by the MIS/accountantassistant

- He/She is in charge of approving the expenditures of the branch up to 200USD and to request theapproval from the headquarters for upper amount.

- He/She is in charge of cash management (fund request according to forecast) within the branch incollaboration with headquarters

Development- The branch manager is in charge of the canvassing for new markets both geographically and in

terms of new products- The branch manager is in charge of the groundwork with local authorities to develop ABC in new

areas- The branch manager is in charge of gathering information about clients satisfaction and needs

Skills

- Integrity and transparency- Natural authority- Team work spirit- Good relational qualities- Ability to take initiatives- Knowledge about microfinance is a requirement- Ability and willingness to go to the field in the Eastern Provinces- Ability to solve problems


- Prior experience in microfinance- Primary education and basic knowledge of algebra- Fluent in Pashto and basic knowledge of English- Basic knowledge of computer (Word and Excel)

1.8 Accountant

Level: Officer

Reports to: Finance and Administration Manager

Directly supervises: provincial accountant assistants

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Major objectives

- The accountant is in charge of keeping updated and accurate accounting for both internal andexternal constituencies

- The accountant is in charge of providing accurate and on-time information to the finance andadministration manager


Planning and reporting- He/She participates in the design, implementation, operation and development of the financial and

accounting system of the organisation together with the FAM- He/She is responsible to prepare accurate and on-time management reports (Balance sheet,

income statement, Cash flow statements, others)- He/She is in charge of establishing monthly, quarterly and annual financial reports for donors that

will then be validated by the FAM- He/She participates in the preparation of plans and forecast for the institution (monthly, quarterly,

annual financial plans, budgets, business plans) together with the COM and the FAM- He/She provides support to the risk officer for internal audit and to the external auditor as well

Day-to-day accounting

- He/She collects and files all accountancy documents (bills, contracts, etc)- The accountant is in charge of managing the cash according to procedures in place- The accountant is responsible for keeping Cash books and other financial documents on a daily

basis- He/She is in charge of executing all cash payments upon checking the correctness of payment

demands and ensuring that the approval process was followed. The payment has to abide by theinternal rules of level of authority.

- He/She ensures that expenses incurred in the branches are in accordance with the plans andprojections

- He/She is responsible for monthly operations of depreciation, provisions and other adjustments- He/She is in charge of keeping the inventory of fixed assets of the institution- He/She is responsible for bank accounts reconciliation

Control- He/She is in charge of controlling the accounting data entered by the provincial accounting assistant

before to post them into the system- He/She is in charge of insuring that procedures are followed for approval of expenditures, World

Bank procurement procedures- He/She visits frequently the branches in order to ensure that procedures are followed, that books

are kept correctly and data entered in the right way in the software

Skills

- Integrity and transparency- Team work spirit- Excellent capacity of organisation

- Ability to solve problems that could happen in the work progress- Ability to work under pressure and to deliver on time- Sense of confidentiality and discretion- Knowledge about microfinance would be a plus- Ability and willingness to go to the field in the Eastern Provinces


- Degree in accounting, economy, or management- Prior experience in accounting- Knowledge of accounting software- Fluent in Pashto and basic knowledge of English- Good command of computer

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1.9 MIS officer

Level: Officer

Reports to: Chief executive officer

Directly supervises: provincial MIS assistant

Major objectives

- The MIS officer is in charge of the implementation and update of the MIS system used to keeprecord and track loans and other financial services

- The MIS officer is in charge of providing portfolio reports that will be used as decision tools by themanagement team


Loan tracking- He/She is responsible for keeping accurate and updated reports on financial services (loans,

savings) provided by the institution, on clients (village bank and individuals) and on loan officersperformance and branches performance- He/She is responsible in for the design and implementation of loan tracking procedures together

with the Credit Operation Manager- He/She is in charge of updating the data about loans, clients and loan officer as often as required to

keep accurate information- He/She defines, in collaboration with Risk Officer and CEO, the procedures to protect the

information and to recover data in case of breakdown in the IT system- He/She insures the control over systems (versions, upgrade) and take corrective actions in the

case of technical problems, in coordination with the management team

Reporting- The MIS officer is in charge of preparing monthly reports on portfolio, branch performance and staff

performance- He/She is in charge of preparing weekly follow-up on disbursement and repayment for themanagement team (COM, FAM and CEO) for them to use it as a decision making tool for portfolioat risk follow-up and forecast for cash management

- He/She should take initiatives to produce new reports (on portfolio, impact) that can be use by themanagement team as decision making tools

Control- The MIS officer is in charge of controlling the data entered at the provincial level by the provincial

MIS assistant before to post them into the software- He/She visits frequently the branches and the clients in order to verify the information given

Skills

- Integrity and transparency- Team work spirit- Good capacity of organisation- Ability to solve problems that could happen in the work progress- Ability to work under pressure and to deliver on time- Sense of confidentiality and discretion- Knowledge about microfinance would be a plus- Ability and willingness to go to the field in the Eastern Provinces


- Secondary school

- Experience with IT or data base- Good command of Windows, Office- Good command of Pashto and English is required

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1.10 Loan officer

Level: field staff

Reports to: Branch manager

Directly supervises: nobody

Major objectives

- The loan officer aims to offer ABC financial services to village banks among rural communities- The loan officer is responsible to analyse economic situation of clients and their needs for loans and

repayment capacity- The loan officer manages his/her portfolio to maximize the number of village banks and clients , the

volume of loans and the portfolio quality- The loan officer is responsible of for offering a good visibility and image of the institution as he/shes

the first and often only contact of the client and the community with the institution


Planning- The loan officer is in charge of preparing the planning of his/her activity for the next fortnight

according to schedule of disbursement and repayment- He/She is in charge of providing this planning to the branch manager who approves it

Marketing- The loan officer is in charge of canvassing potential village banks within the area defined by the

branch manager, in order to offer them financial services.- The loan officer will follow the procedures established by the institution which includes the contact

and presentation to the communities and their council before establishing any village bank and theconduction of presentation with the targeted population to present the products

- He/She is in charge of promoting the institutions products among the village banks

Provision of financial products- The loan officer is in charge of the creation of village banks, the presentation of the products to

them, and their training according to the institutions procedures- He/She is in charge of gathering and analysing information about clients in order to prepare their file

for approval with the branch manager. To do so the loan officer is required to visit clients businessor house.

- He/She should present the clients file for approval to the branch manager- He/She organizes, trains and supervises community members about the institutions procedures,

the management of financial products and the operations record- He/She is in charge of the all contract procedures from their preparation, to their filing, through their

signature.

- He/She is in charge of disbursement and repayment operations according to the procedures

Follow-up of clients- He/she is in charge of controlling the information given by the clients about his/her income, family,

and purpose for the loan in order to minimise the risks- He/she should visit regularly the clients business in order to monitor the business expansion- He/she should follow-up repayment and take actions in case of late repayment following the

procedures in place- He/She should provide relevant information to the client on business development, microentreprise,

or appeal to the branch manager to find relevant partnership for provide such service

Reporting- He/She should keep accurate and update file on each clients and provide these information to MIS

assistant- He/She is in charge of reporting all operations to MIS and accounting assistant on daily basis- He/She is in charge of preparing monitoring reports and to highlight eventual problems to the

branch manager

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Skills

- Integrity and transparency- Team work spirit- Good capacity of organisation- Ability to solve problems that could happen in the work progress- Ability to work under pressure and to deliver on time- Sense of confidentiality and discretion

- Knowledge about microfinance would be a plus


- Prior experience in accounting- Secondary education- Knowledge of accounting software- Fluent in Pashto and basic knowledge of English- Good command of computer

1.12 Driver

Level: support staff



Major objectives

The Driver is responsible for driving ABC vehicle, minor repairing, ensure that the vehicle is ready fortravel, kept clean etc. He reports to Branch Manager.


- Drive office vehicles for the transport of authorized personnel- Responsible on daily basis for checking oil, water, battery, tires, etc- Perform minor repairs and arrange for other repairs and ensure that the vehicles are kept clean- Reporting immediately to Branch Manger in case of any security event happened- Stay or moving to a secure place in case of security tragedy happening in the area and confirm the

branch manager.- Log official trips, daily mileage, etc- Ensure that the steps required by rules and regulations are taken in cars of involvement in an

accident.

- Keep up the log book and ask for signature of staff at the end of trip- Any other duties assigned by supervisor

Skills

- Knowledge of traffic rules and regulations- Skills in minor vehicle repair- Reliable, Honest, Objective and hard work- Ability to work under pressure, and to work long hours.- Must be a self-motivated person, capable of learning new tasks.


- High school graduated- At least 2 years of driving experience and Valid driving License- Very good knowledge of local language- Willing to travel in eastern region

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1.13 Guard




Major objectives

The Guard is responsible for total security of the ABC office and individual property of ABC. He reportsto Branch Manager.


- Prevent visitors who are carrying weapon from entering the ABC office.- Secure the ABC (Branch) at the finish of working day.- Inspect all incoming mail and packages and report immediately to the Branch Manager any

suspicious packages, bags or envelops.- Direct visitors to register their details upon entering the office- Manage access of ABC vehicles to Parking areas and ensuring that inspection completed properly- Prevent Non ABC vehicles from entering to ABC office or parking in areas considered a risk to the

ABC.- Patrol the ABC (office) ensuring the safety and security of the offices, equipment, vehicles and staff.

Skills

- Working alternatively night/day shift according to schedule prepared by Branch Manager

- Reliable, Honest, and hard worker- Ability to work under pressure, and to work long hours.- Must be a self-motivated person, capable of learning new tasks.- Deal politely and professionally with visitors, staff and colleagues


- At least completion of Primary school- Very good knowledge of local language- At least 2 years prior experience as security guard

1.14 Cook




Major objectives

The cook is responsible for preparation of daily meals, keep clean the dining room and kitchen,

shopping of food if assigned by supervisor. He reports to Bran

HRpolicy and Procedures July 2007 V1

Documents

Transcript of HRpolicy and Procedures July 2007 V1