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LETTER OF TRANSMITTAL

Tuesday, November 28, 2010

Mr. Monzoor Morshed

School of business

Independent University, Bangladesh (IUB)

Baridhara, Dhaka.

Subject: Letter of Transmittal.

Dear Sir,

We have pleasure in presenting the annual report for Eastern Bank Limited. Here is the report on the detailed analysis of Eastern Bank , which has been assigned to us for the course HRM 370. Our report encompasses the picture of EBL’s compensation board which provides EBL to their employees. Due to time constraint and other limitations, we could not come up with a commanding report. However, we have tried our level best in this report with the help of the scrutinized collected information during our class in IUB.

Thanks for giving us this opportunity to work on this report. It has been a real didactic assignment for us. If you need any assistance in interpreting this report it would be our immense pleasure to cooperate with you.

Sincerely yours,

Members of Rumman group

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Table of content page no

Acknowledgment 3

Executive summary 4

Methodology 5-6

Company Profile 7-8

HR policy 9

Company structure 10-11

Board of directors 12

Compensation 13

Recommendation 14

Appendix 15

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Acknowledgement

At first we want to thanks to IUB (Independent university Bangladesh) because IUB had

provided us the opportunity to carry out this study. As a result we are very grateful to IUB

officials who have allowed us to do HRM 370.

Than we would like to express our gratitude and thanks to our respected faculty, Mr. Monzoor

Morshed, School of Business, Independent University Bangladesh for his eager, helpful and

enthusiastic guidance which encourage us to accomplish this report. And he also gives many

ideas about the compensation about any company.

We are also very thankful to the EBL’s employee Mr. Munir hossian who give many information

about EBL (Eastern Bank Limited). He is so older employee in EBL. And we am also very

thankful and grateful Mr. Saiful Islam who gave idea about the EBL compensation board. He is

customer relationship manager.

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Executive Summary

After acknowledgement we would like to make the executive summary of our report. In this

comprehensive report, we have discussed about every major aspect of the bank, which we knew

during the survey. Along with it, the processes, policies and procedures of the bank have also

been discussed in detail.

The main purpose of this report is to learn, by working in practical environment and to apply the

knowledge acquired, during the studies, in a real world scenario in order to tackle the problems.

In this report the detailed analysis of the organization has been done and all the financial,

technical, managerial and strategic aspects have been evaluated to analyze the current position of

the organization. Along with it, the background analysis, the prevailing competition analysis, the

business process analysis, and the internal environment and external environment of the

organization have been discussed and the recommendations for the improvement have been

made wherever required.

During our survey program, we mainly worked with compensation board. This department has

been discussed in detail and all the policies and procedures have been described thoroughly.

In the end the learning and experiences section consists of all the policies, processes, practices

and procedures, which we have undergone through and learned during my internship program.

This report also contains our perceptions about the employees’ satisfaction, motivation level and

the working environment of the organization. And we are sure that this report will provide you a

complete and clear image of organization.

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Methodology:

The term methodology refers to process and producers by which approach problem and seek

answer. Methodology differs from another in this respect and hence conclusions arrived may also

vary. It is clear idea of procedure and system.

Research design

Research design is simply the frame work or plan for a study that is used to guide for collection

of data and analysis the data at specifies the procedure and method for acquiring the information.

In the research design it is seen that how the data should be used.

Data collection method

In any report or project it take a very important role, it provides information for analysis and interpretation. The data can be collected through primary &secondary data. The primary data- primary data can be collected through questionnaires. Through the secondary data, we collected

• Company profile • Existing files and records

But we collect EBL compensation board information by survey.

Measurement instrument:

To gather data the reporters will use questionnaire. The questionnaire survey will be the most effective method for this study to collect data for this study for the following reasons-

1. Respondent’s anonymity can be maintained.

2. Quicker rate of response.

3. Questionnaire survey will be the most appropriate one for this study.

4. Flexibility of data collection.

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In most of the studies conducted on the variables of the current study, the researchers used questionnaire survey for their study.

Research timeline

2010 October 15 Go for survey at EBL

2010 October Data collection procedure

2010 October Development of conceptual frame work

2010 November 20 Data analysis and interpretation of findings

2010 November 28, 2010 Submission

Limitation

There is some limitation in this research proposal such as-

We did not have sufficient time for preparing better research proposal As we don’t have any previous experience of doing a research proposal, so this study

might suffer from lack of experience. We find limited articles to access with relevant data and information. Human being sometimes don’t provide proper and accurate information

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Eastern Bank Limited: Profile

With a vision to become the bank of choice and to be the most valuable financial brand in Bangladesh, Eastern Bank Ltd. (EBL) began its journey in 1992. Over the years EBL has established itself as a leading private commercial bank in the country with undisputed leadership in Corporate Banking and a strong Consumer and SME growth engines. EBL’s ambition is to be the number one financial services provider, creating lasting value for its clientele, shareholder, employees and above all for the community it operates in.

Product Basket

Bangladesh Banking Sector has grown from strength to strength over the past one decade and is fiercely competitive, especially in the Consumer Banking segment. EBL offers a wide range of depository, loan and card products to cater virtually for every customer segment. From Student Banking to Priority Banking to Platinum card EBL has almost all banking products in its repertoire. The product basket is rich in content featuring different types of Savings & Current Accounts, Personal Loans, Debit Cards, Credit Cards, Pre-paid Cards, Internet Banking, Corporate Banking, SME Banking, Investment Banking, Treasury & Syndication services. The customers are served through a network of 39 Branches, 62 ATMs and 5 Kiosks countrywide. EBL has its presen ce in 11 major cities/towns in the country including Dhaka, Chittagong, Sylhet, Khulna, Rajshahi & Cox’s Bazar.

Product Innovation

EBL is known for its product innovation in the market. During the past five years, EBL introduced 12 new-to-Bangladesh financial products and services. EBL Matribhumi – the bundle product for expatriate Bangladeshis, insurance covered monthly savings scheme, VISA corporate cards, remittance card and mobile–based remittance solution are just a few of them. On the SME banking window EBL offered customer–friendly and groundbreaking products like EBL Uddom and EBL Mukti. At present, EBL Consumer, SME and Corporate Banking units are capable of handling every kind of customer financial needs.

EBL different from other Bank

1. EBL is the first bank in Bangladesh to go online.

2. EBL provided the first “Green Loan” in Bangladesh in Solar Panel manufacturing plant which will contribute to transform the lives of 1 million people of the most remote and off-grid areas by lighting up their homes.

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3. EBL is the first ever local bank to finance Aircraft purchase deal of Biman Bangladesh Airlines. Prior to this, only multinational banks used to finance such projects.

4. EBL generates highest profitability per employee in Bangladesh Banking sector.

5. EBL launched first ever Bank- sponsored Mutual Fund in Bangladesh

Vision

To become the bank of choice by transforming the way we do business and developing a truly unique financial institution that delivers superior growth and financial performance and be the most recognizable brand in the financial services in Bangladesh.

Mission

They will deliver service excellence to the customers, both internal and external. They will ensure to maximize shareholders' value. We will constantly challenge our systems, procedures and training to maintain a cohesive and professional team in order to achieve service excellence. We will create an enabling environment and embrace a team based culture where people will excel.

Aims & Objectives

To conduct interest-free banking.

To establish participatory banking instead of banking on debtor-creditor relationship.

To invest on profit and risk sharing basis.

To establish a welfare-oriented banking system.

To extend co-operation to the poor, the helpless and the low-income group for their

economic upliftment.

To play a vital role in human development and employment generation.

To contribute towards balanced growth and development of the country through

investment operations particularly in the less developed areas.

To contribute in achieving the ultimate goal of Islamic economic system.

Recruitment Policy

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Eastern bank limited practices two types of recruitment policy:

Contractual

Aimed to hire the most experience high level officials

Regular

To hire entry level officials in three fields:

Probationary Officer/ Management Trainee

Officer

Executive

The qualifications required for different level of managerial position is graphed below:

Category Qualification (general) Qualification (advanced)

Executives i. BSc, B.Com

ii. MSc, M.Com

iii. MBA

Experience in the banking sector

Officers i. BSc, B.Com

ii. MSc, M.Com

iii. MBA

none

Probationary

Officer

(Management

Trainee)

i. MBA (Preferred)

ii. BBA

none

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Different level of management:

Top level Executives: There are some top level executives in Eastern bank limited like

1. Board of Directors

2. Managing directors

3. Executive Vice Presidents

4. Vice Presidents

Mid-Level Executives: There are some top level executives in Eastern bank limited like

1. Senior personal officers

2. 2nd Officers

3. HR Officers

Lower-Level Executives: There are some top level executives in Eastern bank limited like

1. Junior Officers

2. Labors

CHAIN OF COMMAND

Person Number of person

CHAIRMAN 1

BOARD OF DIRECTORS 11

MANAGING DIRECTOR 1

EXECUTIVE VP 2

SENIOR VP 7

VICE PRESIDENTS 11

ASSISTANT VP 10

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The Bank’s salary structure differs from level to level of the managerial hierarchy. And the

compensation level is totally different from the different level. The salary basis can be explained

as such:

Top level Executives

Remuneration of the top-level executives mainly depends on the demand for the executive. In

this level mainly head hunting is the practice for hiring the most efficient executive. Therefore

collective bargaining does take place while hiring. In Top level Executives, some are includes

like Board of Directors, Managing directors, Executive Vice Presidents, Vice Presidents ect.

They earn monthly 65000 taka or above. They are the key for the organization.

Mid-Level Executives

Their salary is based on their rank or position in the hierarchy and salary structure at this level

has more or less rigid form, which is upgraded in line with the competency of the market. The

earn from 45,000 maximum to 25,000 minimum.

Lower-Level Executives

Salary at this level has the same structure and form practiced in the mid –level. They earn 9,000

maximum. They do not across 9000 taka.

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Board of Directors

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Mr. Mohd. Noor AliChairman

Mr. Mir Nasir HossainDirector

Mr. Md. Showkat Ali Chowdhury

Director

Mr. A.M. Shaukat AliDirector

Ms. Aneela HaqueDirector

M/S Aquamarine Distributions Ltd.

Represented By: Mr. Asif Mahmood

Director

M/S. Unique Eastern (Pvt) Ltd.

Represented By: Mr. Gazi Md.

Shakhawat HossainDirector

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COMPENSATION SYSTEM OF EBL

EBL provides the following benefits to its different employees:

1. House Rent Allowance

2. Conveyance

3. House maintenance

4. Entertainment

5. Utility

6. Medical

LEVEL House rent Conveyance House maintenance Entertainment Utility Medical

Top level 27000 or above

5000-10000 6000-15000 5000-10000 8000-15000

3000-10000

Middle level

12000 or above

2000-3000 3000-5000 2000-5000 5000-8000

2000-5000

Lower-Level

2000 500-1000 None None None None

Recommendation

Mr. Mohd. Noor AliChairman

Mr. Mir Nasir HossainDirector

Mr. Md. Showkat Ali Chowdhury

Director

Mr. A.M. Shaukat AliDirector

Ms. Aneela HaqueDirector

M/S Aquamarine Distributions Ltd.

Represented By: Mr. Asif Mahmood

Director

M/S. Unique Eastern (Pvt) Ltd.

Represented By: Mr. Gazi Md.

Shakhawat HossainDirector

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After depend on contracting employee, they want more extra compensation like-

– tuition reimbursement

– gym facilities

– Satisfactory Provided fund policy

– Childcare or something

– Job sharing

Appendix:

Survey on Employee Benefit of Eastern Bank

[This questionnaire will be used to prepare a research paper which will be submitted to the Course Instructor of Human Resource Management. The information will be kept confidential.]

No Question 1 2 3 4 51 The benefit of EBL is world standard2 Health care is sufficient3 Pension plan is good4 Perks is there5 Encourage employees to exhibit superior performance: Profit

sharing, Gain sharing, Lump-sum bonuses Pay for knowledge6 PTO is present within the bank7 Job sharing is excepted by the organization8 Childcare or something like that is present9 EBL offer tuition reimbursement10 Benefit like financial needs, gym facilities is there11 Satisfactory Provided fund policy12 Accommodation and other utility13 Conveyance14 Annul leave

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5 = Strongly Agree 4 = Agree 3 = neither Agree nor Disagree 2 = Disagree 1 = Strongly Disagree