HRM practice in private and public banks

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A Report on

HRM Practice in Banking Sector:Private Banks vs public Banks

Course Name: Human Resource Management

Course Code: MGT 3227

Submitted to:

Md. Miraj Hossen

Lecturer

Department of Management Studies

Submitted by:

Group Name:Sunflower

Section: A

BBA, 6thBatch

3rdYear, 2ndSemester

Department of Management Studies

Jagannath University

Date of Submission: April30, 2014


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Group Name: SUNFLOWER

Section: A

Profile of Group Members:SL No Name ID No Remarks1 Simon Sarker 114903

2 Imran Hoque Mollah 114919

3 Sajid Iqbal 1149694 Naima Azad Ifa 1149795 Md. Mostafizur Rahman 1149936 Romana Akther 1150017 Manik saha 1150058 Md. Taijul Islam 1150079 Md. Mahmudul Hasan 11500910 Delowar Hossain 115015


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Acknowledgement

First of all we would like to thank the Almighty for giving us the strength, andthe aptitude to complete this report within due time. We are deeply indebted

to our course teacher, mentor, and counselor, Md. Miraj Hossen for assigning

us such an interesting topic named A Report on HRM Practice in Banking

Sector:Private Banks vs public Banks. We also express the depth of my

appreciation to our honorable course teacher for his suggestion and

guidelines, which helped us in completing this report.


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Letter of Transmittal

30thApril, 2014

Md. Miraj Hossen,

Lecturer,

Department of Management Studies,

Jagannath University, Dhaka.

Subject: Submission of Report on HRM Practice in Banking Sector:Private Banks

vs public Banks

Sir,

We are the student of Department of Management studies, Jagannath University,Dhaka and also from the group named Sunflower. A report was given us by you on

HRM Practice in Banking Sector:Private Banks vs public Banksfor submitting.

We are really happy to have such a report of challenging and interesting like this and

also thanks to you for making us worthy for corporate. During the preparation of this

report we learn something very extra in practical which will be very helpful for us in

future. There were some obstacles we have faced at the time of preparing this report.

But we have overcome all the obstacles by the endeavor effort by each member of our

group.

We had taken at most care to present this report and this report has been excellent

outlet for combining theoretical and practical aspect. We are really grateful to you for

giving us such a great job & opportunity like this to prove our ability in making a quality

report. We had limitations at the time of preparing this report. So mistakes may occur in

preparing this report. We hope you will take our mistakes forgivingly.

Yours sincerely,

On behalf of the group

Manik SahaSec: AGroup Name: SunflowerDepartment of Management StudiesJagannath University, Dhaka


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Table of Contents

Chapter no. Topics Page No.

Ch 01Executive Summary 08

Introduction 09

Objectives of the study 10

Methodology 11

Limitation of the study 11

Ch 02

Banking Industry in Bangladesh 13

HRM Practices of Dhaka Bank Limited 14-21

HRM Practice of City Bank Limited 22-26

HRM Practice of IFIC Bank Limited 27-30

HRM Practices of Southeast Bank ltd 31-35

HRM Practices Of Uttara Bank Ltd 36-43

HRM Practices of Sonali Bank 44-47

HRM Practices of Agrani Bank 48-52

CH-03

Analysis & Findings 54

Recommendation 55

Conclusion 56


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Table of Chart

Serial No. Graph Name Page

1.

2.

3.

4.

5.

Method of Training and DevelopmentPattern of compensationPattern of Reward and BenefitMethod of Training and Development

Pattern of compensation

414343

50-5151


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CHAPTER- ONE

Introduction


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Executive Summery

Modern Banking follows development driven process by changing financial activities and work

environment. In banking sector they follow employee perception and motivation. The main

objectives of this project are to find out the overall HRM process of private banks and public

bankof Bangladesh. Especially the discussion of the report are to know overall HRM process of

the bank and to acquire practical knowledge on HRM practice. Human Resource is an emerging

concept in Bangladesh and organizations such as a Bank put much more emphasis on this

department so this study will help the organization as well. Practicing HR has a positive impact

on the performance of the bank. Being a complete separate department to deal with some key

responsibilities, they are more focused on what they are doing and for his reason their efficiency

is improving day by day. So from my opinion companies which got no HR department should

take immediate initiative to start practicing HR in their companies. The success of banks largely

depends on the intellectual development of the employees. Along with intellectual development

of the knowledge worker, technical infrastructures of the bank must be ensured to enhance theeffectiveness of the employee and the bank. Generally, the banking profession in Bangladesh is

recognized with standardized salary scale, higher social status and dignity.


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Introduction

Human Resource Management (HRM) is the function within an organization that focuses on

recruitment of, management of, and providing direction for the people who work in the

organization. Human Resource Management can also be performed by line managers.Employees are the core resources of any organization, without them, one cannot run their

organization and human resource is conducted with the growth of development of people

toward higher level of competency, creativity and fulfillment. It keep employees become

better more responsible person and then it tries to create a climate in which they contribute

to the limits of their improved abilities. It assumes that expanded capabilities and

opportunities for people with lead directly to improvement in operating effectiveness.

Essentially, the human resource approach means that people better result.

So, establishing the structure of the bank assists in determining the skills, knowledge and

abilities of job holders. To ensure appropriate personnel are available to meet the

requirements set during the strategic planning process.

This effort is to determine what HRM requirements exists for current and future supplies and

demands for workers. Because this bank believes that the quality work comes from quality

workers who are well motivated and ready to take challenge to provide better service. HRM is

the strategic and coherent approach to the management of an organizations most valued

assets. The people working there who individually and collectively contribute to the achievement

of the objective of the business. HRM and HR have largely replaced the term Personnel

management as a descriptive of the process involved in managing people in an organization.

HRM is evolving rapidly. HRM is both an academic theory and a business practice that address

the theoretical and practical techniques of managing a workforce.Employees play a dual role in

an organization first as a factor of production and second as a motive force for other factors ofproduction.It makes other factors operative and productive. People are the most valuable asset

of an organization. Yet human assets are virtually never shown on the balance sheet.


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Objectives of the StudyEvery task has a particular aim. A study without objective cannot reach its

destination. The main objectives of this study are to find out the overall HRM

process of various banks of Bangladesh. The objectives of the study

conducted in the banks are mentioned as under:

1. To know overall HRM process of thepublicbanks and private banks

2. To acquire practical knowledge on HRM practice

3. To know the functions of various departments of HRM

4. To learns about banks employment planning

5. To be familiar with the recruitment and selection process

6. To learn about the employee benefits

7. Making a precise picture of the present situation of employment procedure

in Bangladesh


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ethodologyMainly we have collected data from two sources. These two sources are as

following:1. Primary sources &

2. Secondary sources

The Primary sources of my information are as below:

Direct observation Expert opinion &

Questioning the concerned persons

The secondary sources of my information are as below:

Website

Desk report of the related department.

Other manual information.

Different reference books of the library

News paper

Articles

Internship report

Limitation of the study

While conducting the report onHRM Practice in Banking Sector:Private

Banks vs public Bankssome limitations were yet present there:1. Less analytical power, Non-cooperative behaviors of some officials of thebank,

2. There were a few questions which were tactfully avoided or not exactlyanswered by the respondents,


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3. Large scale research was not possible due to constraints and restrictions

posed by the organization,

4.Recent data and information on different activities was unavailable.


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CHAPTER- TWO

THEORETICAL ASPECTS


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Banking Industry in Bangladesh

The Banking Industry in Bangladesh is one characterized by strict regulations and

monitoring from the central governing body, the Bangladesh Bank. The chief concern is

that currently there are far too many banks for the market to sustain. A Bank is an

organization that engages in the business of Banking. Banks are depository financial

intermediaries linking the savers and users of fund. These intermediaries are interposed

between the ultimate borrowers and lenders permitting them efficient transfer of

entrepreneurs who need funds to take the advantage of economically and financially

viable investment opportunities. Thus, these commercial banks have a positive rule in

financing and investment which is a multidimensional process involving the complexity

of many interrelated and interdependent factors of diversified nature.

Banks are financial services firms, producing and selling professional management of

the publics funds as well as performing many other roles in the economy. The scope of

the business changes over time and in recent years has broadened considerably. In

essence, banks perform three functions: (1) Provide the means of payment through

administering the checking account system; (2) intermediate between depositor and

providing all types of loans to borrowers; and (3) provide a variety of financial services,

encompassing fiduciary services, investment banking and off balance sheet risk taking.

All domestic banks were nationalized after independence and placed under the direct

control of the Ministry of Finance. In addition to state owned banks there exists a

significant and growing private sector consisting of both purely domestic banks as well

as branches of foreign banks. As a result, the market will only accommodate only

those banks that can transpire as the most competitive and profitable ones in the future.

Currently, the major financial institutions under the banking system include:

1. Bangladesh Bank

2. Commercial Banks

3. Islamic Banks

4. Leasing Companies

5. Finance Companies


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HRM PRACTICE OF PRIVATE BANKS

Human Resource Management Practices of Dhaka Bank LimitedKey facts about Dhaka Bank Limited (DBL):The Banks that were given license during the mid 90s are called the 2

ndGeneration private

Commercial Banks. Dhaka Bank Limited (DBL) is one of them that incorporated as a public

limited company under the Companies Act in 1994 and is governed by banking Companies Act,

1991. The Bank started its commercial operation on July 05, 1995. Since its incorporation, DBL

has proved itself as a true development partner of the Government in developing the national

economy providing efficient banking services to different sectors of the economy.

The Mission of DBL:

To be the premier financial institution in the country providing high quality products and

services backed by latest technology and a term of highly motivated personnel to deliver

Excellence in banking.The Vision of DBL:

At Dhaka Bank we draw our inspiration from the distance stars. Our team is committed to

assure a standard that makes every banking transaction a pleasurable experience. Our

endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery,

cutting edge technology, and tailored solution for business needs, global reach in trade and

commerce and high yield on your investment.

Our People, products andprocesses are aligned to meet demand of our discerning customers.

Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to

deliver a quality that demonstrates a true reflection of our vision- Excellence in Banking.Units of HR:

There are three units in Human Resource Division of Dhaka Bank Ltd.:

1. HR Staffing

2. HR Operation

3. Training & Development1. HR Staffing:Activities in HRM concerned with seeking and hiring qualified employees is Staffing.

A company needs a well defined reason for needing individuals who posses specific skills,

knowledge and abilities to specify the job. Employee referrals can produce the best applicants

for two reasons. First, current employees screen applicants before referring them. Second,

current employees believe that their reputations with the firm will be reflected in the


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candidates that they recommend. Activities in HRM concerned with seeking and hiring

qualified employees is Staffing.

A company needs a well defined reason for needing individuals who posses specific skills,

knowledge and abilities to specify the job. Employee referrals can produce the best applicants

for two reasons. First, current employees screen applicants before referring them. Second,

current employees believe that their reputations with the firm will be reflected in the

candidates that they recommend.

Three officers are working in HR staffing unit. They perform the following activities-

a. Recruitment & Selection

b. Leave Management

c. Personal Dossier Management

d. Disciplinary Matters

1. a. Recruitment & Selection:

Recruiting is the initial step of staffing. Recruiting is the process of locating, identifying, and

attracting capable employees. Many companies are finding new employees on the World Wide

Web. The source that is used should reflect the local labor market, the type or level of position,

and the size of the organization. Now the second step of Staffing, that is strategic HR planning.

For that a company plans strategically.

Third step is selection. This process is attracting qualified applicators and discouraging the

unqualified applicants. By this a company can get its desired employees of requirement. It has

dual focus, attempting thin out the large set of applications that arrived during the recruiting

phase and to select an applicant who will be successful on the job. For selection of candidates

things that are taken into consideration includes appearance, attitudes, knowledge, qualification,

Communication skill, Job knowledge (for lateral entry), etc. To achieve this goal, companies can

use a variety of steps. HRM must communicate a variety of information to the applicants, such as

the organization culture. Under the selection process there are some steps:

The company can use these steps to select the employees. With this process their Staffing job is

done. The completed selection process ends the staffing functions. The company can use thesesteps to select the employees. With this process their Staffing job is done. The completed

selection process ends the staffing functions.b. Leave management:

Leave is earned by duty. Leave cannot be claimed as a matter of right, and leave admissible

under the service rule of Dhaka Bank Ltd. may be granted by the Managing Director or his


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authorized person, who may refuse leave, grant leave for a shorter period than applied for,

revoke leave of any description and recall an employee before the expiry of the leave.

One Principal Officer is looking after the leave matter of employees and keeping leave records.

Employees of our bank are enjoying following leave:

Casual leave is usually processed in respective branch/division by the respective manager &

head. All other leaves are processed by the HR Division. The leave application along with

recommendation of head/manager sent to the HR Division and processed by the concerned

officer of the division. LFA also processed in HR Division and disbursement also been done

centrally by HR Division. Most of the processes & records are manual in nature. The HR Software

SCALED has little support in this regard.

c. Personnel Dossier Management:

All employees history and records are kept in personal file of each employee. Employee related

data are also stored throw HR software SCALED (Skill set Competency Assessment for Logical

Evaluation and Development). All files are kept safely in the File Cabinet of HR Division.

d. Disciplinary Matters:

All employees are subject to disciplinary measures and liable to different penalties based on the

degree of infringements of Banks policies, dereliction of duty, and breach of contract, discipline

and misconduct.

Disciplinary Procedures:

Management may initiate disciplinary proceedings against any staff member on grounds of

misconduct or misdemeanor. No disciplinary proceeding shall be drawn up unless these

procedures are followed:

An enquiry committee shall be formed by the Managing Director

A preliminary enquiry is held into charges and the prima-facie case is made out based on

the findings of the enquiry

Charges should be drawn up and a copy therefore is given to the offending staff member

by Human Resources Division.

Depending upon the gravity of the misconduct, the staff members may be placed under

suspension pending enquiry and disposal of his/her case.

The staff member is given one weeks (7 working days) time to explain his/her

circumstances / conduct

A detailed enquiry is held based on the explanation of the staff member during which

he/she is given a personal hearing.

2. HR Operations:

HR operations unit mainly work in the area of short term and long-term benefits of the

employees of DBL, like salary, bonus, provident fund, gratuity, super annuation fund, etc.


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Monthly Salary Disbursement

Preparation and disbursement of Festival Bonus and Performance Bonus

Employees Final Settlement.

Staff House Building Loan

Maintain liaison with different hospitals, which are under the corporate agreement with

Dhaka Bank Limited. Submission of various Salary related MIS report to the Management & Regulatory bodies.

SBS Reporting

Work as System Admin in HR department

Assist in Appraisal Management

PF Loan disbursement

LFA disbursement

Investment with the gratuity and PF fund

Employee Tax processing, etc.

3. Training and Development:

Training is one of the important activities of human resource management. In the training process

companies try to motivate and train the employees in a manner so that they can work more

effectively in the future. Under the training process there are some steps they are given below:

a. Employee orientation:

Employee orientation provides new employees with the basic background information they

need to perform their jobs satisfactorily. Companies arrange an orientation program for the

employees.

In an orientation program the employees should feel-

feel welcome

understand the organization in a broad sense

be clear about what the firm expects in terms of work and behavior

begin the process of socialization

b. Employee training:

Thereis some process, method and techniques of employee training. A company follows the all

the steps of training to provide the employees a good look on their work.

c. Employee development:

Employee development is like the output of training. In development stage employees are

motivated after their proper training. The development of an employee can be organizational.

Organization development aims to change the attitudes, values, and beliefs of employees so that

the employees can identify and implement changes.


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d. Career development:

The career development stage is given below:

Pre transition:Is simply looking for a job and preparing oneself for a career.

Transition: An individual is already having a job and developing oneself for future career or

moving to another career. Preferred area:An individual prefers a specific sector of the career.

Early stage:First 1-5 years of career is called early career.

Mid career:5-20 years after the career starts.

Late career:Late career starts after 20 years of job life

Retirement:And finally after completing the stages of career and individual decides to retired.

Recruitment

Whenever there is a need to fill in a vacancy, the concerned division involved will raise an

Employee Requisition Form. This form along with the Job Descriptions and Persons

Specification, thereafter, should be forwarded to the Human Resources Division for processing.

A. Types of Recruitment:

a. For Internal Recruitment:

The principal methods are-

Job posting

Use of computerized skills inventories

Referrals from other departments

b. For External Recruitment:

Organizations rely on- Advertisements

Public or private placement agencies

Field recruiting

Including campus recruiting

Internships

B. Point of Recruitment:

There are two level of recruitment.

1. Entry level

2. Lateral entry ( Recruitment of experienced person)

Selection:

All prospective candidates are required to complete an ApplicationForm for Employment. The HR

Division along with the concerned Function Head will be responsible for processing applications,

screening applicants, and short listing qualified candidates.


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The HR Division contacts the qualified candidate/s and arranges appropriate tests for any

position to identify the potential of the candidates based on Job Description and Persons

Specification

Written tests for appointment will cover the following areas

Knowledge in English

General intelligence, knowledge and numeracy.

Computer skills

Knowledge in relevant Functional area

Written or Job Tests:

It is mandatory for short-listed candidates to sit for a written test for the post of Probationary

Officer and Trainee Assistant/Trainee Assistant Cash Officer.

Apart from the above, for other positions, as decided by the Management, candidates short-listed

may be required to sit for written test and or a practical job related test and or formal interview.

Interviews

Appointment / Hiring

Age limit

Medical Fitness

Gradation

Service Register

Confirmation

Career Advancement:

It is the Banks policy to ensure that each employee is developed s fully as his ability,

performance and opportunity within which the Bank may permit. To this end periodic reviews will

be made to determine the performance and potential of employees and, if necessary, the training

required to enable them to progress to more senior positions. It must be made clear, however,

that promotion can take place only if the following conditions are satisfied:

1. The Employee is proficient satisfactory to fill a higher position

2. There is a vacancy at the higher level

Opportunities for employee advancement will be created through exposing them to challenging

job/responsibilities that enable appropriate development of the employee. Individual career

planning is expected on the employees own initiative and in coordination with Human Resource

Division, individual or Group Counseling / Coaching will be provided by HRD.


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Pay Policies of Dhaka Bank Ltd.

a) Remuneration

b) Salary

c) Provident Fund

d) Gratuity

e) Loan Facilities

f) Medical Facilities and Health Insurance

Promotion/Up-gradation

Promotion cannot be claimed as a matter of right and all promotions shall be made on merit and

no employee shall have a claim to be promoted to a higher grade by virtue of his seniority alone.

All promotions shall be made be on the basis of Performance and different criterion laid down by

the Management from time to time.

An employee may get Accelerated promotion once within a year based on his/her performance

a) Promotion in Executive Grade

b) Promotion in Officer Grade

Bonus of DBL

Festival Bonus

Performance Bonus / Profitability Bonus / Incentive Bonus

Employee Training and Development:

(a) Training and Development needs of employees are identified on a regular basis, and

accordingly they are nominated for the following training:

1. In-house training (DBTI)

2. Local training

3. Regional training

4. Overseas training

(b) Whenever an opportunity comes up, an employee may be sent abroad for training and

development so that they gain knowledge and experience and perform better at work place.

(c) On return from training/attachment an employee may be required to submit a Trip Report to

his/her Functional Head and debrief the Management Committee about the learning through

presentation within 15 days of return as and when requested by the Management.

(d) An employee should also submit an Action Plan on the training for transfer of learning to the

work place.

(e) An employee may be asked to sign an indemnity bond to ensure continuity of service before

he/she goes / after he/she returns from training overseas, such indemnity will be determined by


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the Management based on the length of training, years of service and track record of the

employee concern.

Retirement:01) Retiring Age:

(a) Retirement age is 60 years. An employee will retire from services at the end of the month in

which his/her 60thbirth anniversary.

(b) The management may, however as its discretion, in special circumstances and in the

interest of the Bank, appoint any member after retirement on Contract basis beyond the age of 60

years subject to such terms and conditions and in absence of such specialized skilled employee

on the Terms mutually agreed.

(c) An employee may be required to proceed on early retirement at the discretion of the

management once he/she has completed 25 years service with the Bank or an employee may

retire voluntarily after completion of 25 years of active service with the Bank.

01) Retirement on Health Grounds:

(a) An employee may retire on grounds of ill health, before attaining the age of 60 years at the

discretion of the management.

(b) In the event of such retirement, to overcome the adversity / hardship, the management may

consider appointment / employment / recruitment of his/her children in the Bank. Provided his/her

children conforms all the pre-requisites of the recruitment policy of the Bank.


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Human Resource Management Practice ofCity Bank Limited

The City Bank Limited is a full service scheduled commercial bank. It has both local and

International Institutional shareholder. The bank is primarily driven with a view of creating

opportunities and pursuing market niches not traditionally meet by conventional banks. The

City Bank has been motivated to provide best-in-the-class services to its diverse assortment

of customers spread across the country under an on-line banking. The City Bank Ltd. started

its journey in the service sector on March 27, 1983 with only with one branch. But, now it has

76 branches throughout the whole country and serves its clients proudly. Head office of this

bank is at 10 Dilkusha C/A (Jibon Bima Tower) Dhaka.

HRMin the City Bank Ltd.:

When we contacted in theCity Bank Ltd., we came to know that the organization has adepartment called ADMINISTRATIVE DEPARTMENT, which is actually their Human

ResourceManagement department. This department, in the organization, performs a wide range

of tasks, though all of the HRM practices are not in the organization. All the branches of the

bank do not have the HRM or such department. Sony the head office has it; so this one

department has to keep track of all the employees in al the branches. This department performs

the duty of recruiting, selecting, training and development, motivating, job designing,

performance appraisal and rewarding and giving benefits etc.

Recruitment:

Selection and Recruitment is an integral part of any organization that heavily depends on their

workforce to successfully perform their mission and achieve their vision in the long run. Thus

appropriate selection of candidates to join in the workforce is a necessary part of Human

Resource Management, which is ensured by the Human Resource Division in The City Bank

Limited.

For recruitment the organization follows al the possible ways of recruitment.

Internal Search

Employee Referrals/Recommendations

Advertisement

Internal Job Posting

Promotion

Transfer on deputation
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Selection:The banks selection procedure is as follows:

Initial Screening:

First, through the initial screening process, they sort out the applications of those who have the

actual qualifications [Degree, age, experience (if necessary)] for the post. Then these candidates

are sent the admit card for the employment test.

Employment Test:

TheCity Bank Ltd. has a two step employment test- the written test and the interview. The bank

contacts with some other organizations, like IBA, BIBM or any other institute, to conduct the

written test for them. The bank sails the boat in that organization, where their cost will be minimal.

The selected organization then takes the written test, screens out the answer sheets and sends

the number-sheet to the bank. The bank has a preset standard score and those who have scored

more than or equal to that score are called for the interview.

Final Selection:The candidates who pass both the written test and the interview are considered for final

appointment. Within those candidates the required number of employees are taken and given the

final appointment. These employees have to fill up an appointment form at the time of joining.

Employee Training and Development:The City Bank Ltd. has a system of training the employees on a regularly basis, particularly the

newly appointed employee. The bank has a training institute of its own with high computer facilities,

where every year some training courses are completed. The bank sometimes sends its employees

to other organizations for more training.

The training program includes:

Orientation Training

In-house training

Job specific training

Need based local/foreign training

Peer or Supervisors coaching

E-learning: Online training and evaluation
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On the Job Training:The most widely used methods of training take place on the job. This can be attributed to the

simplicity of such methods and the impressions that try are less costly to operate. On -the -job

training places the employees in an actual work situation and makes them appear to be

immediately productive. It is learning by doing.

One of the drawbacks to on the job training can be low productivity while the employees developtheir skills.

Off- the -Job -Training:Off-the -job training cover a number of techniques classroom lectures, films demonstrations,

case studies and other simulation exercises, and programmed instruction. The facilities needs for

each of these techniques vary for small makeshift classroom to an elaborate development center

with large lecture halls, supplemented by small conference rooms with sophisticated audiovisual

equipment, too many mirrors, and all the frills

Motivation:

One of the main criteria for effective human resource management is motivation. For the desired

result of any organization, motivating the employees is very important. So the City Bank Ltd. also

tries to motivate its employees.The human resource officer informed us that they believe in

McGregors Theory Y and emphasize the safety and love need for all employees.

Motivates employees: Individual

Group

Company-wide

Performance Appraisal:

The performance evaluation and appraisal is done mostly by the observation on how the employee

is doing or dealing with a client. The City Bank Ltd. has a special unit, under itAdministrativeDepartment, to conduct this performance evaluation and appraisal. This unit keeps its eyes on the

performance of all the employees throughout the year and suggests necessary actions (Reward or

Punishment) where it is necessary. In this way the bank conducts its performance measurement and

appraisal process.

Performance Appraisal Process:

Supervisors

Subordinates

Peers

Clients / Customers

Self appraisal

180/360 degree approach


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RewardSystem:

As the bank does not have any specific performance evaluation and appraisal system it does not

provide any standard reward system. If any employee can really impress the authority by his/her

extra-ordinary performance s/he is then usually financially rewarded, which comparatively has a low

effect on the employee who is in quite a higher level of the organizational ladder. On the whole,

increment is the only reward that the bank uses for motivating or appreciating its employees.

Benefit Package:

City Bank Ltd. has a very good benefit package. Firstly, for the staff level workers the bank

provides uniform and its maintenance expenditure (Officials and managers dont need any uniform).

The bank also has a package of different types of leaves for all level of employees. The bank

provides a satisfactory annual leave, sick leave and casual leave. The bank has provided the

opportunity for the employees to have extra leave for emergency situation. Female workers get three

months long maternity leave twice in their working lives in this organization. Besides this leave

package the bank provide an opportunity for the employees to have a provident fund, which the bankand the employee share equally (5% contributed by both the worker and the employer). The bank

provides Fringe Benefits for its executive level employees.

The remuneration of employees consists of:

Basic Salary

House Rent and

Medical Allowance

Major employee benefits are:

Retirement plans

Health promotion programs

Paid time off

Family benefits

Insurance

Educational

Objectives of Pay & Benefits:

Reduce fatigue

Discourage labor unrest

Satisfy employee objectives

Aid recruitment

Reduce turnover

Minimize overtime cost


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Compensation Administration

The bank thinks that its compensation package is very sensitive and confidential and cannot be

exposed to the people from outside. The banks pay structure is pretty much dependent on job

evaluation. It means that the bank tries to compensate according to the job difficulty or in other

words job hierarchy. The bank compensate firstly by classification method of job evaluation andthen by ranking method. While compensating any worker, the bank first determines the class of that

post.(The City Bank Ltd. has four classes of employeesExecutives, Officers, Service Workers and

Staffs).

Protection in case of health & accident

Income upon retirement & termination.

Job Evaluation:

Orderly and systematic techniques Of determining the relative worth of various jobs within the

organization, So as to develop an equitable wage and salary structure.

The two most common methods of job evaluation that have been used are first, whole job

ranking, where jobs are taken as a whole and ranked against each other. The second method is

one of the awarding points for various aspects of the job.

Process of Job Evaluation:

Gaining Acceptance

Constituting Job evaluation Committee

Selecting Jobs to be evaluated

Describing the jobs

Selecting the method of job evaluation

Weighting job factors

Assigning money values

Periodic review


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Human Resource Management Practice ofIFIC Bank Limited

COMPANY BACKGROUND

International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking companyincorporated in the Peoples Republic of Bangladesh with limited liability. It was set up at the

instance of the Government in 1976 as a joint venture between the Government of Bangladesh and

sponsors in the private sector with the objective of working as a finance company within the country

and setting up joint venture banks/financial institutions aboard. In 1983 when the Government

allowed banks in the private sector, IFIC was converted into a full fledged commercial bank. The

Government of the Peoples Republic of Bangladesh now holds 32.75% of the share capital of th e

Bank. Directors and Sponsors own 8.62% of the share capital and the rest is held by the general

public.

HR Policy

Policy is guideline to action Human Resource policy is the most vital element of corporate policy

since it guides recruitment, selection, orientation training and placement of personnel.

Apparently human resource policy is concerned with proper use human required for undertaking

activities in order to achieve corporate goals and objectives. The same kind of human resource

is not appropriate for all kinds of organizations. A particular organization has to assemble and

develop manpower keeping in view with its planned and projected activities.

Components of Human Resource Policy

For achieving the objectives of human resource policy as aforesaid, the Bank has identified the

following human resource policy areas. The human resource policy issues starting from

recruitment to retirement consist of following:

Recruitment Policy

Background Checking Policy D Promotion Policy

Increment Policy D Leave Policy

Transfer and Posting Policy

Reward and Recognition Policy

Termination and Retirement Policy


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Training Policy

Compensation Policy

Succession Planning Policy

Recruitment and Selection Policies

Although recruiting is frequently perceived as the initial step in the staffing function, it has

prerequisites. Specifically, before the first job candidate is sought, the HR specialist must

embark on employment planning. Specifically, when an organization plans strategically, it

determines its goals and objectives for a given period of time. These goals and objectives often

lead to structural changes in the organization; that is, these changes foster changes in job

requirements, reporting relationships, how individuals are grouped, and the like. As such, these

new or revised structures bring with them a host of pivotal jobs. It is these jobs that HRM mustbe prepared to fill. HRM identifies the essential qualifications for a particular job.

Selection

The management of the bank will analyze the manpower requirement of branches at least once

a calendar. After assessment of manpower need in line with the organ gram of branches,

management will recruit required number of candidates as per policy. All appointments will be

made in accordance with IFIC bank services rules, bank administrative power and as per

norms/guidelines of Bangladesh Bank.

Written Test

Probationary officers will be hired every year through advertisements in national dailies. The test

will be conducted by IBA or BIBM, DU. If they are unable to take the test any other organization

may be entrusted with the responsibilities.

Promotion Policy

Promotion will be considered as VERTICAL ELEVATION in organizational hierarchy usually

with enhances pay, allowance, & status.

Promoting Factors

Academic as well as professional qualification

Knowledge of banking rules and regulations


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Job performance as evident from performance appraisal reports

Length of services or seniority in the grade

Potential for development and contribution to the growth and development of the bank

Clean service record

Smartness

Satisfactory performance in interview

Performance Standards

Appraisal systems require performance standards, which serve as benchmarks against which

performance is measured. To hold employees accountable, a written record of the standardsshould exist and employees should be advised of those standards before the evaluation occurs.

Ideally the appraisal of each employees performance should be based on actual performance

of the critical elements identified through job analysis.

Performance Measures

Performance evaluation also requires dependable performance measures, the ratings used to

evaluate performance. To be helpful, they determine performance. Dependable measures also

allow others using the same measures applied against the same standards to reach the same

conclusions about performance, adding to the reliability to the appraisal system. Performance

measures also may be subjective or objective.

Welfare Activities to the Employees

Leave Policy

Overtime Policy

Hospitalization

Insurance

Leave Travel Retirement Benefits

Holiday Homes

Flexible Timings


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Training and Development

Training involves the change of skills, knowledge, attitudes or behavior of employees. Although

training is similar to development in the methods used to attract learning; they differ in time

frames. Training is more present day oriented; its focus is on individuals' current jobs,enhancing those specific skills and abilities to immediately perform their jobs . Foundation

courses have two parts:

Ttheoretical training in the academy and

Job rotation

Development

Specialized training programs in the areas like general banking, advance, foreign exchange,

marketing and accounts etc. are also organized by the Academy depending on need.

Frequently outreach programs are organized to meet demand for new and specialized skills.

Methods of Training

The academy holds need-based training courses/workshop/seminars etc. which are finalized by

Training & Research Division in constantly with various department and senior executives atHead Office. Training inputs are constantly reviewed / modified for achieving the objective.

Methods in training include: discussion/ lecture/workshop/case study/games/ roleplay/ filmshow/simulation/group work & Presentation/ project` Visit and so on.


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Human Resource Management Practices of SoutheastBankltd.

COMPANY BACKGROUND

The emergence of Southeast Bank Limited (SBL) was at the juncture of liberalization of global

economic activities. The experience of the prosperous economies of the Asian countries and in

particular of South Asia has been the driving force and the strategic operational policy option of the

Bank. The company philosophyA Bank with Vision has been precisely an essence of the

legend of success in the Asian countries.

Southeast Bank Limited, A Bank with a Vision, emerged as a 2nd Generation Commercial

Banking Industry of Bangladesh in the year 1995. It was incorporated on March 12, 1995 as a

public limited company according to the Companies Act 1994. The commencement of its banking

business occurred on May 25, 1995 by the Principal Branch located at the Annex Building, 1

Dilkusha Commercial Area, Motijheel, Dhaka. The Head Office of the Bank is also located at the

same address on the 3rd floor of Annex Building.

The Bank started with an authorized capital of Tk. 500 million and paid up capital of Tk. 100 million.

Southeast Bank Limited started its business with the inaugural Chairman Mr. Mohammad Abul

Kashem, Vice Chairman Mr. Ragib Ali and the first and former President and Managing Director of

the Bank Mr. Syed Anisul Haq.

Recruitment Policy:

Recruitment Principle:All appointment / recruitment in the bank will be made by direct recruitment as per

prescribed criteria or by promotion as per promotion policy approved and / or amended /

updated / by the competent authority from time to time.

Determining the Source of Recruitment:

The Bank for the purpose of recruitment uses different sources. The source varies for recruiting

personnel for different level/posts. Advertisement is generally used for recruiting people for all

levels while head hunting is used only to recruit upper level experienced bankers. The sources

used by the bank for the purpose of external recruitment are given below,

Advertisement

Pending CV

Interns


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Walk-in Interview

Head Hunting

Recommendations/References

Contract and Temporary Basis Recruitment

Requirement for Recruitment:No person shall be appointed in the service of the bank unless:

(a)The applicant is a citizen of Bangladesh. Provided, however, that this may not be

applicable in case of recruits abroad or in case where relaxation has been approved by the

Board on consideration of special circumstances.

(b)A qualified medical practitioner acceptable to the bank certifies that the applicant is

physically and mentally fit for service in the bank.(c)The applicant has not been dismissed / terminate from the service or his service has

been dispensed with for any specific reason with his / her former employer for financial

irregularity or act of dishonesty / fraud / forgery. Those lateral entrants who have been

dismissed / terminated from the service of their former employers after submission of their

registrations with the intent to join Southeast Bank Limited shall, however, remain outside the

purview of these sub-rules.

(d)The age limit of the applicant for fresh entry in the Bank should be within the age

bracket of 18-30 years. For lateral entry, the maximum age limit will be 50 years. It will not,

however, be applicable in case of contractual employment.

General Flow Chart of Selection process:

Advertisement / submission of CVs at HRD, Head Office

Sorting out of application

Preparation of preliminary list


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Calling the selected applicants for the written test

Holding written test

Selection of eligible candidates for the Interview (VIVA-VOCE)

Calling the selected candidates for the Interview

Conducted Interview

Investigation of applicant details

Preparation of desirable candidates list

Final approval by the competent authority

Physical fitness for employment

Appointment and Placement

Promotion/ Cadre Change Policy:1. Promotion may be considered for the highly deserving employees having satisfactory

performance and service record.

2. Promotion is not a matter of right. It has to be earned by merit and performance.

3. Employees having adverse ratings in performance appraisal form/ACR or under

disciplinary action may not be considered for promotion / cadre change.

4. Promotion/ change of cadre usually may take place once in a year to be effective from

1st January of each year.

5. Promotion may take place subject to availability of sanctioned post in the higher grades.

6. Individuals may be promoted on the basis of following consideration:1. The eligible employees will be evaluated on the basis of standard performance

Appraisal Form.

2. Individuals evaluated as outstanding or very Good may only be considered for

promotion.

7. For consideration of promotion minimum qualification requires is Graduation.


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8. Bank may consider accelerated Promotion / cadre change of any employee irrespective of

fulfillment of promotion / cadre change criteria but having outstanding performance /

service records and making significant contribution to the causes of the Bank.

9. Individuals evaluated as outstanding but could not be considered for promotion / cadre

change because of non-fulfillment of promotion / cadre change policy / criteria may be

allowed one or more than one performance increment provided the employee fulfills thecriteria for annul increment (normal increment) in a particular financial year.

10.Initial Pay

a) Initial pay on promotion:

The initial of an employee promoted to a higher post shall be fixed at the minimum of the

scale of the higher post: Provided that if his pay in the lower post is equal to or higher than

the minimum in the scale of the higher post to which he is promoted, his pay in the higher

post shall be fixed at a next stage above his pay in the lower post.

b) Initial pay on cadre Change:

The initial pay of an employee Cadre Change to a particular post shall be fixed at the

minimum of the scale of the new post: Provided that if his pay in the present post is equal to

or higher than the minimum in the scale of the new post to which he is Cadre Changed, his

pay in the new post shall be fixed at a next stage above his pay in the existing post.

Leave Rules:Leave application: All applications for leave shall be addressed to the Head of branch /Relevant Department / Divisional Head which must contain his full address during the period

of leave applied for and in the case of leave on the ground of illness or maternity leave must

be supported by medical certificates indicating the period of leave recommended.

Grant if Leave

Absenting from Duty without Leave

Resumption of Duties

Report on Return from Leave

Medical leave


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Types of Leave:Subject to fulfilling the necessary conditions the following types of leave may be available to

an employee:

1) Casual leave

2) Privilege leave

3) Sick leave

4) Maternity leave

Employeesbenefits and facilitiesDifferent kinds of benefits and facilities for the employees of the Bank are maintained by the HRD as

per the written rules and regulations of the Bank. Some of the benefits that are given to the

employees

1.Bonus

2.Provident Fund

3.Gratuity

4.Maternity Benefits

5.Medical Facilities

6.Loan Facilities

7.Superannuation Fund

8.Lave Fare Concession

9.Leave Encashment Benefits


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Human Resource Management Practices Of UttaraBank Ltd

Background of Uttare Bank Ltd.Uttara Bank Ltd. Establish in 28thJanuary 1965 as private initiative under the name of Eastern

Banking Corporation. After 1972 being nationalized, it has been named after UttaraBank Ltd. It hasbeen permitted to start its commercial operation privately in September 1983. Its registered office is

located in 90, Motijheel Commercial Area Dhaka-1000. It is operating banking through 198 branches

in all over Bangladesh. Having sold its share in 1984 it enlisted in Dhaka Stock exchange. In 2004 it

has also enlisted in Chittagong Stock exchange.

Job Analysis:The procedure for determining the duties and skill requirements of a job and the kind of person who

should be hired for it.

The process of job analysis is of two types:

1. Job Description2. Job Specification

Human Resource Planning:

Have collected Human resource planning is concerned with the flow of people into, through, and out

of an organization. HR planning involves anticipating the need for labor and the supply of labor and

then planning the programs necessary to ensure that the organization will have the right mix of

employees and skills when and where they are needed.

Supply of labor:

Once the demand for labor is predicted, it is necessary to forecast the supply of labor that the

organization will already have available to meet the demand. It is basically of two types:

1. Internal supply of labor

2. External supply of labor

Recruitment:When a vacancy occurs and the recruiters receive authorization to fill it, the next step is a careful

examination of the job and an enumeration of the skills, abilities, and experience needed to perform

the job successfully.

The Recruitment Process of the Organization:


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Method of recruitment:There are two method of recruitment:

1. Internal recruitment

2. External recruitment

Internal recruitment:Most companies fill vacancies internally whenever possible. A number of internal recruitment methods

are use for different level of jobs. Lower-level jobs such as manual and clerical jobs are often

called nonexemptjobs because their incumbents are not exempt from the minimum wage and

overtime provisions of the Fair Labor Standards Act. These people typically are paid an hourly wage.

In contrast, higher-level administrative, managerial, and professional employees are paid on a salary

basis and are exemptfrom the overtime provisions of the Fair standard Labor Act.
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External recruitment:In addition to looking internally for candidates, it is customary for organizations to open up recruiting

efforts to the external community. Through the recruiting process, the hiring manager should stay in

close touch with the recruiter. The hiring manager should examine resumes or application that have

passed initial screening by the recruiter and should also review some of the application that the

recruiter rejected during the first steps. Such involvement on the part of the hiring manager allows

feedback as to whether or not the recruiters decisions are consistent with the hiring managers

preferences.

External recruitment methods are often grouped into two classes: 1. Informal and 2. Formal.

Informal Method:

Informal recruiting methods tap a narrower labor market than formal method. Informal method

includes rehiring former employees or former cooperative education students, hiring people referred

by present employees, and hiring from among those who have applied without being solicited (such

applicants are called walk-ins or gate hires).

Employees referral,also known as word-of-mouth advertising, is quick, effective, and usually

inexpensive. Because employees who refer their friends and acquaintance as candidates have theirown credibility on the line, they tend to refer people who are well qualified and well motivated and

then to mentor these individuals once they are hired.

Formal Methods:

Formal method of external recruiting entail searching the labor market for candidates who have no

previous connection to the firm. These methods traditionally have included newspaper advertising, use

of employment agencies and executive search firms, and campus recruiting. Posting jobs ads on the

Internet, either on the companys own site or a commercial job board, has also become extremely

popular in the last few years. Historically, newspaper advertising has been the most commonly used

method of recruiting.

Formal method includes:

Recruitment Advertising

Internet Recruiting

Employment Agencies

Public Job Service Agencies

Private, For-profit Agencies

Unions

Additional Recruiting Methods

Campus Recruiting

Executive Search Firms etc.

Selection:Selection the right employees are important for an organization. First own performance always

depends in part on subordinates. Employees with the right skills and attributes will do a better job for

the company. Employees without these skills wont perform effectively and as a result the firm will

suffer.


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Process of selection:Selection activities typically follow a standard pattern, beginning with an initial screening interview

and concluding with the final employment decision. The selection process typically consists of eight

steps:

Initial screening interview

1. Completing the application form

2. Employment test

3. Comprehensive interview

4. Background investigation

5. A Conditional job offer

6. Medical or physical examination

7. The permanent job offer.

Initial Screening:

As a culmination of our recruiting efforts, organization should be prepared to initiate a preliminary

review of potential acceptable candidates. This initial screening is, in effect, a two steps procedure: (1)the screening of inquiries and (2) the provision of screening interviews.

Completion of the Application Form:

Once the in initial screening has been complicated, applicants are asked to complicate the

organizations application form. The amount of information required may be only the applicants name,

address, telephone number and other information.

Employment tests:

Organization historically relied to a considerable extent on intelligence, aptitude, ability and interest

tests to provide major input to the selection process.

The comprehensive interview:

The applicant may be interviewed by HRM interviewers, senior manager within the organization, a

potential supervisor, potential colleagues or some or all of these.

Background investigation:

The next steps in the process are to undertake a background investigation of those applicants who

appear to offer potential as employees. This can include contacting former employers to confirm the

candidates work record and to obtain their appraisal of his or her performance, contacting other job-

related and personal references, verifying the educational accomplishments shown on the application,

checking credit reference and criminal records, and even using third party investigation, to do the

background check.

Conditional job offer:

If a job applicant passed each steps of the selection process so far, it is typically customary for a

conditional job offer to be made. Conditional job offers usually are made by an HRM representative. In

essence, what the conditional job offer implies is that if everything checks out okay- passing a certain

medical, physical or substance abuse test the conditional nature of the job offer will be removed and

the offer will be permanent.


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Physical/ Medical Examination:

Physical exams can only be used as a selection device to screen out those individuals who are unable

to physically comply with the requirements of a job.

Job offer:

Those individual who perform successfully in the preceding steps are now considered to be eligible to

receive the employment offer.

Training:The process of teaching new employees the basic skills they need to perform their jobs.

Training refers to the methods used to give new or present employees the skills they need to

perform their jobs. Training might thus mean showing a machinist how to operate his or her new

machine, a new salesperson how to sell his or her firms product, or a new supervisor how to

interview and appraise employees. Training basically provide to the entry-level employees.

On the job training:It means learning by doing. It means employees training completed while he

works. It is basically a practical oriented training program.

Off the job training: It means training provided to the employees out of the office in a training

institute for a particular period of time i.e. for 15 to 20 days. During this time the employee does not

have to go to office.

Development:Development basically provide to the management level. Management development is any attempt

to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills.

The ultimate aim of such development programs is, of course, to enhance the future performance of

the organization itself. For this reason, the general management development process consists:

(1) Assessing the companys needs (for instance, to fill future executive openings, or to boost

competitiveness),

(2) Appraising the managers performance, and then

(3) Developing the managers (and future managers) themselves.


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Method of Training and Development:

There are some training and development methods which is given as under:

Performance appraisal:Performance appraisal is defined as evaluating an employees current or past performance relative to

his or her performance standard. The appraisal process therefore involves:

1. Setting work standard

2. Assessing the employees actual performance relative to these standard and

3. Providing feedback to the employee with the aim of motivating the person to eliminate

performance deficiencies or to continue to perform above per.

Appraisal Methods:The appraisal itself is generally conducted using a predetermine and formal method like one or more

of those described in this section.

Graphic Rating Scale:

A scale that lists a number of traits and a range of performance for each. The employee is then ratedby identifying the scale that best describes his or her level of performance for each trait.

Alternation Ranking Method:

Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are

ranked.

Paired Comparison Method:

Ranking employees by making a chart of all possible pairs of the employees for each trait and

indicating which is the better employee of the pair.


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Forced Distribution Method: Similar to grading on a curve; predeterminedpercentages of rates are placed in various performance categories.

Critical Incident Method:

Keeping a record of uncommonly good or undesirable examples of an employees work related

behavior and reviewing it with the employee at predetermined times.

Behaviorally Anchored Rating Scale (BARS):

An appraisal method that aims at combining the benefits of narrative critical incidents and quantified

ratings by anchoring a quantified scale with specific narrative examples of good and poor

performance.

Management by Objectives (MBO):

Involves setting specific measurable goals with each employee and then periodically reviewing the

progress made.

Compensation:Employee compensation refers to all forms of pay or rewards going to employee and arising from their

employment, and it has two main components. There are direct financial payments in the form of

wages, salaries, incentives, commissions, and bonus and there are indirect payment in the form of

financial benefits like employer- paid insurance and vacations. Uttara Bank Limited usually provides

more or less the following compensation, reward and benefits.

Reward:Reward basically provided to the employees of the organization for their good performance. It is of

two types (1) Intrinsic and (2) Extrinsic.

(1) Intrinsic Reward:

It is the personal satisfactions one gets from the job itself. These are self-initiated rewards, such as

having pride in ones work.

(2) Extrinsic Reward:

It includes money, promotions and benefit. Their common thread is that they are external to the job

and come from outside source, mainly management.

Benefits:Benefits include mandatory protection programs, pay for time not worked, optional protection

programs, private retirement plans and a wide variety of other services.


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HRM PRACTICE INPUBLICBANKS

HRM Practices of Sonali Bank

History of Sonali Bank

Sonali Bank Limited, the largest & leading commercial bank of the country, came into being in

1972 immediately after the emergence of Bangladesh as an independent state. A fully state-owned enterprise, the bank has been discharging its nation-building responsibilities by

undertakinggovernment entrusted different socio-economic schemes as well as money market

activities of its own volition, covering all spheres of the economy. Sonali Bank Limited

singularly enjoys theprestige of being the agent of the Central Bank of Bangladesh in suchplaces where the guardian of the money market has chosen not to act by itself. Sonali Bank

Limited is governed by a Board of Directors consisting of 9(nine) members headed by a

Chairman.

The Selection and Recruitment Process of Sonali Bank LimitedTo know the future demand of human resources, the HR division of Sonali Bank Limited usuallyprovides all the other divisions and branches with a general form at the beginning of the year.From the information collected from these forms, the HR division gets an estimate of the human

resource requirement for the year. No long term human resource forecasting is done in SBL. The

following table illustrates the number of branches of the bank and manpower in different years:The recruitment goals of Sonali Bank Limited are to attract and retain highly qualified human

resources who will perform best in their respective areas. The bank not only tries to attract

wellqualifiedcandidates but also tries to identify and recruit people who are really interested to

work in

the bank for an acceptable period of time.

Types of RecruitmentSBL practices two types of recruitment

Yearly recruitment: this is done each year, according to the HR plan

Need-based recruitments: this is done when there is a sudden vacancy

Recruitment Sources and MethodsSBL usually promotes from within the organization. But it also recruits from external sources.

Theexternal sources are:

Different universitiesCompetitors and other organizationsUnsolicited applicants

Campus recruiting will be handled by the HR Division and the overall planning for this will be

done based on the Annual Manpower Plan. However, the respective businessdepartment/functionrequiring the profiles should have the responsibility and mandate to short-list the campus-basedcandidates. The skill base generally recruited through this route will beentry level positions.Therefore, the plan for campus recruitment will have to tie up with the


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placement season of various universities that are targeted for recruitment. The HR Divisionneeds to identify a set of campusesbased on the courses conducted there, any past experience ofcandidates from these campuses andthe emerging requirements of the bank.

The HR Division will need to take a decision regarding the source of external recruiting

considering variables likeAvailable spread of candidatesCost impactTime needed

And the external recruitment methods include:Advertising in newspapers, company website etc.Employee referralsInternships

Selection ProcessThe different steps if the selection process is described below in detail:

Receipt of ApplicationsThis is the first selection hurdle to join SBL. Candidates either send their CVs in application for

a specific vacancy, or they send unsolicited CVs for any suitable position. The HR divisioncollectsjob applications against each job vacancy. In case of newspaper advertisements, theapplicants aregiven at least 3 weeks to apply. After a specific period, each and every job isclosed for applying.

Sorting out of Applications

The next step is the short listing of CVs. Usually the HR division is engaged in the short listing.

But the HR division may delegate this step to the respective divisions (for which the selection isbeing carried out) to save time. To recruit experienced bankers, CVs may be sorted out from the

collection of unsolicited CVs received. Or, another possibility is to find out experienced andcompetent bankers in other banks. Once potential candidates are thus found out, they arecontactedand called for an interview.

Informing Candidates

After the applications are sorted out and a preliminary list is prepared, the candidates areinformedand are called for a written exam (for entry level positions) or an interview (forexperienced bankercourier services seven to ten days prior to the exam.

Written Tests

The employment test is generally an aptitude test which measures the candidates verbal ability,numerical ability, reasoning ability etc. The HR division contacts IBA/BIBM to design and

conduct the recruitment tests on behalf of the bank. The HR division provides them with thedesired academic qualification and the name of the vacant posts to construct the question paper

forthe test.

Interview

The interviews that are conducted are panel interviews and not structured. The interview boardconsists of the MD. DMDs, and the Head of HR. Even in the selection of fresh graduates for TA


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orMT positions, those top level and executive level managers are present. Usually only oneinterviewis conducted for selecting a candidate for a position..

Final Approval by Competent Authority

After the interview is conducted and the interviewees are evaluated, the management committeedecides who is to be selected and who is to be rejected. After this final decision, an Offer Letter

is made for each selected candidate. Once the candidates accept this offer, they are given the

Appointment Letter. The candidates that are rejected are not informed.

Physical Examination

After the appointment letters are printed, the candidates are given one month for joining. First,

the candidates have to go through physical examinations. If the result of these physicalexaminations issatisfactory, then the candidate is eligible to join the bank.

Joining and Placement

After the physical examination, the candidate needs to bring the result of the medical tests along

with all the necessary documents and academic certificates for joining. After going through the

formal joining and placement process, the candidates are finally employees of Sonali BankLimited.

Appointment

Classification of the postThe employees of the bank shall be classified designated as shown in the above illustration. Anychange, addition, in the classification and designation shall required prior approval of the board.

An employee of the bank, other than an officer appointed to a particular category of the position

shall continue in the same category.

NationalityNo position shall be appointed to any post in the service of the bank unless he is a citizen ofBangladesh. Provided that the board may in special cases, waive this condition subject tofulfillment of the condition regarded to employment of foreign nation in Bangladesh.

AgeA candidate shall not be less than twenty years and more than thirty years of age at the time ofappointment direct recruitment as a Probationary Officer and not less than eighteen years and

morethan thirty years of age at the time of appointment by direct recruitment as a probationary.

Physical FitnessNo person shall be appointed in the service of the bank unless he is declared physically fit by the

Medical Officer of the bank or any other Medical authority specified by the bank in this behalf.

Termination of services

Termination

Resigned

Retirement


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Performance Appraisal, Provident fund and GratuityPerformance of Sonali BankGet a competitive salary with a wide range of fringe benefits. In order to sustain the employeeperformance in the job employee of he organization provide different facilities for modern lifehouse rent allowances, medical allowances, transpirations allowances, house utility bills. The

Bank also gives various festive bonuses as well as other bonuses like performance bonuses,securitybonuses etc. According to Annual Confederation Report (ACR) officers also givedifferent cashawards and special increments. Promotion of employee is very regular like otherrecognizescommercial banks.

Provident fundThere shall be a fund called The Sonali Bank Ltd Provident Fund which will be governed by aseparate provident fund rules approved by the broad. All payment employees shall compulsorily

bethe member of Provident fund.

GratuityEvery confirmed and full time employee who has rendered seven year continue service in theBankor more, a gratuity become a one month basic salary for each completed year of service

may be granted to him to retirement/resignation/termination or his family I the event of hisdeath while hisservice. The dismissed employee shall not be entitled to any gratuity.Records and ServiceThe record service shall be maintained separately for each employee. An employee may inspect

His service book once in a year in the presence of the authorized office and after such inspection,

he shall put his signature with date indicating that the entries are correct and complete. If anemployee in course of his inspection discovers any inaccuracy or omission in the service book,

hemay point it out in writing to the authorized officer within 15 days of the inspection.

Working ConditionThe officers of Bank situated in the hart of the city, generally in commercial surrerindings.Officers are centrally air conditationed and well decorated with modern furniture and

sophisticated technical Banking equipment. With the advancenced of technology, Officers ofthe bank is nowbecome paperless; most of the banking tasks are recorded are accomplishedhere with strongbanking software. Inter and intra office communications are generally held bythe telephone, fax,internet and cell phones.

Loan FacilitiesAn employees of this organization enjoy s various loan facilities like House building loan, car

loan, Furniture and household Electronics item loan under some schemes that employees enjoy

interest free loan facilities. Employees are in the higher post enjoy more amounts of loan

facilities.

HRM Practices of Agrani Bank

Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost

all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of


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overseas Correspondents, came into being in 1972 immediately after the emergence of

Bangladesh as an independent state. It started functioning as nationalized commercial bank

taking over assets and liabilities of the erst while Habib Bank ltd and commerce Bank ltd.

functioning in the East Pakistan.

It has been corporatized on 15th November.2007 and emerged as Agrani Bank Limited (ABL)

taking over assets, liabilityand goodwill of Agrani Bank.

Agrani Bank Limited is governed by a Board of Directors consisting of 11(eleven) members

headed by a chairman. The Bank is headed by the Managing director & Chief Executive Officer;

Managing director is assisted by Deputy Managing Director and General Managers. The bank

has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10

corporate and 40 AD( authorized dealer) branches. The corporate and AD branches are

authorized to deal in Foreign exchange business.

Recruitment process:

In the recruitment process there are couple of steps are to be followed:

1. Written test: The recruitment test is combined of both elaborative and MC.Q. type. Usually Agrani

Bank Ltd assigned this to some organization. The particular organization does all the thing. In the

written test a person has to obtain a certain marks to pass the exam.

2. VIVA:The candidate after qualifying written test has to face VIVA test. VIVA usually taken by the

top management of the bank. Only short listed candidate are selected finally for the job.

Method of recruitment:

There are two method of recruitment:

1. Internal recruitment

2. External recruitment

Internal recruitment:

A number of internal recruitment methods are use for different level of jobs. Lower-level jobs such

as manual and clerical jobs are often called nonexempt jobs because their incumbents are not

exempt from the minimum wage and overtime provisions of the Fair Labor Standards Act. These

people typically are paid an hourly wage. In contrast, higher-level administrative, managerial, and

professional employees are paid on a salary basis and are exemptfrom the overtime provisions of

the Fair standard Labor Act.

External recruitment:

In addition to looking internally for candidates, it is customary for organizations to open up

recruiting efforts to the external community. Through the recruiting process, the hiring manager

should stay in close touch with the recruiter. The hiring manager should examine resumes or


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application that have passed initial screening by the recruiter and should also review some of the

application that the recruiter rejected during the first steps. Such involvement on the part of the

hiring manager allows feedback as to whether or not the recruiters decisions are consistent with

the hiring managers preferences.

External recruitment methods are often grouped into two classes:

1. Informaland

2. Formal.

Formal method includes:

Recruitment Advertising

Internet Recruiting

Employment Agencies

Public Job Service Agencies

Private, For-profit Agencies

Unions Additional Recruiting Methods

Campus Recruiting

Executive Search Firms etc.

Selection:

Selection the right employees are important for an organization. First own performance always

depends in part on subordinates. Employees with the right skills and attributes will do a better job

for the company. Employees without these skills wont perform effectively and as a result the firm

will suffer.

Process of selection:

Selection activities typically follow a standard pattern, beginning with an initial screening interview

and concluding with the final employment decision. The selection process typically consists of eight

steps:

1. Initial screening interview

2. Completing the application form

3. Employment test

4. Comprehensive interview

5. Background investigation

6. A Conditional job offer

7. Medical or physical examination

8. The permanent job offer.


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Training:The process of teaching new employees the basic skills they need to perform their jobs.

Training refers to the methods used to give new or present employees the skills they need to

perform their jobs. Training might thus mean showing a machinist how to operate his or her new

machine, a new salesperson how to sell his or her firms product, or a new supervisor how to

interview and appraise employees. Training basically provide to the entry-level employees.

On the job training:It means learning by doing. It means employees training completed while he

works. It is basically a practical oriented training program.

Off the job training: It means training provided to the employees out of the office in a training

institute for a particular period of time i.e. for 15 to 20 days. During this time the employee does

not have to go to office.

Development:

Development basically provide to the management level. Management development is any

attempt to improve managerial performance by imparting knowledge, changing attitudes, or

increasing skills. The ultimate aim of such development programs is, of course, to enhance the

future performance of the organization itself. For this reason, the general management

development process consists:

(1) Assessing the companys needs (for instance, to fill future executive openings, or to boost

competitiveness),

(2) Appraising the managers performance, and then

(3) Developing the managers (and future managers) themselves.

Method of Training and Development:

There are some training and development methods which is given as under:

Training Development

1. On the job Training

2. Apprenticeship Training

3. Informal Learning

4. Job Instruction Training5. Lecture

6. Program Learning

7. Vestibule or Simulated Training

8. Computer Base Training

9. Training Via CD- ROM and

the internet

1. Managerial on- the- job Training

2. Job Rotation

3. Role Playing

4. Behavior Modeling

5. In HouseDevelopmentCenter


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Performance appraisal:

Performance appraisal is defined as evaluating an employees current or past performance

relative to his or her performance standard. The appraisal process therefore involves:

1. Setting work standard

2. Assessing the employees actual performance relative to these standard and

3. Providing feedback to the employee with the aim of motivating the person to eliminate performance

deficiencies or to continue to perform above per.

Compensations, Rewards and Benefits

Compensation:

Employee compensation refers to all forms of pay or rewards going to employee and arising from

their

HRM practice in private and public banks

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