Human Resource Management

Section–01 Group#03

Fall 2017

Project on:
HR Policy of Union Bank LTD
Submitted To
Md. Al-Amin

Lecturer, Department of Management, North South University.

Submitted by-

Md. Faysal Ahad 1510525030

Amirul Islam Tanin 1510669030 

Md. Jahid Mahmud 1520238030

Sumaiya Hassan Tanzu 1530653630
Tanjit Karim Abir 1520234030

Date of Submission: 17th December, 2017.

Report on HR Policy of Union Bank LTD

Letter of Transmittal
December 17, 2017

Md. AL-Amin (MLI)

Lecturer,

School of Business and Economics.

North South University.

Bashundhara R/A, Dhaka.

Subject: Report on HR Policy of Union Bank LTD

Dear Sir,

It has been a great pleasure for us to finish the course under your watch. We prepared this report
as per your guideline. We had been sincere while doing the research and we also like to thank
you for giving us the chance to work on this topic. We got much practical knowledge while
completing this report. Though there were some limitations we try to make an in-depth analysis
of that topic also. We beg pardon for any mistakes we have made in this report.

We hope that you will find this report worth reading. Please feel free for any query that you
would like us to explain. Hope you will appreciate our hard work and excuse the minor errors.

Thanking for your cooperation.

Regards,

Name Id

Md. Faysal Ahad 1510525030

Amirul Islam Tanin 1510669030

Md. Jahid Mahmud 1520238030

Sumaiya Hassan Tanzu 1530653630

Tanjit Karim Abir 1520234030

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Report on HR Policy of Union Bank LTD

Executive Summary
The purpose of this project is to discuss the HRM plan for Union Bank Ltd, a growing banking
organization in Bangladesh. We focused on various HRM matters of Union Bank LTD to
prepare this project. Their human resource management works on their goals, mission and vision.
We utilize straight data from Union Bank LTD. In this project we also mentioned about their
internal and external recruitment process. They chose their employees through various tests. For
development of their working skill they use both on the job and off the job training. Currently
they are working on their appraisal methods for betterment of all employees. They offered their
employees with many benefits and series like provided fund, gratuity, and most interesting part is
they are now working some special services for their employees such as child care. However
they have some shortcoming in their Hr polices and we tried to discuss a little about those
shortcomings and write some recommendations to overcome those problems.

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Table of Contents
Introduction......................................................................................................................................5

Methodology....................................................................................................................................6

Background Information of Union Bank.........................................................................................7

Current HR System..........................................................................................................................8

1. Strategic Human resource Management...............................................................................8

2. Personnel Planning and Recruiting..........................................................................................8

3. Selection Process................................................................................................................10

4. Training and Development....................................................................................................11

5. Performance Appraisal..........................................................................................................14

6. Benefits offered.....................................................................................................................15

Recommendations..........................................................................................................................17

Conclusion.....................................................................................................................................17

References......................................................................................................................................18

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Report on HR Policy of Union Bank LTD

Introduction

Every organization needs employees to look after different activities.HRM is the activity of
managing personnel, usually employees. Such human resource needs to be developed fully so
that it will make positive contribution for the progress and prosperity of a business unit. For this
organized development and management of human resources is essential. Human Resource
Management (HRM) deals with: acquiring, training, appraising, and compensating employees,
and of attending to their labor relations, health, safety, and fairness concerns.

From our class lessons we learn that HRM is an organized learning skill aimed at matching the
organizational need for career growth and development. It is a process connecting series of
learning activities designed to acquire desired level of competence among employees. HRM is a
constant process and it needs money. Such investment creates a team of efficient, skilled and
trained manpower which brings success and constancy to a business unit. HRM programs offer
long term benefits to an organization.

Now we wish to apply our class lessons and theories we have learned from our MGT351 course
to discuss about HRM policy and how it employ in real life work place.

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Methodology
Methodology is a systematic way of making a project. We have to figure out the proper way of
searching human resource management information for our research on Union Bank LTD. It is
very important to choose appropriate method for making an effective project. We went to Union
Bank LTD Head Office that’s in Gulshan and taken a short interview with Senior Principal
Officer of Human Resources Division Anupama Zaman. We asked her some important questions
which we made before the interview. We asked questions about Union Bank LTD and also about
their Human Resource Management system. We noted and recorded her answer which helps us
to complete our research and make this report.

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Background Information of Union Bank

Union Bank Ltd a new Shariah Based commercial bank in Bangladesh. It’s one of the leading
fourth generation banks in the region, was formed on 1st April, 2013 with the aim of ‘To become
socially committed world class financial institution’ and started its operation as a Shariah based
Bank in the private sector on 20 May, 2013 by opening Gulshan Branch. The bank provides high
quality customer service through the integration of the latest banking technology and also
Shariah based Product. It was succeeded to open 36 new branches at various commercially
important locations including rural zones. Their Vision and Mission are trying hard to provide
spectrum of services whether the clients are individuals, small entrepreneur or industrial firms.
Union Bank encourages employees to try many different roles within their organization which
can develop themselves and the company. Human Resources Division is trying its best to retain
best employees through a sound recruitment and selection process from time to time. The report
describes various function and activities of the Human Resource Management department (HR)
of Union Bank.

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Current HR System of Union Bank

1. Strategic Human resource Management

Strategic Human Resource Management is the way of attracting, recruiting, evaluating and
compensating employees for the betterment of the employees and also for the betterment of the
organization as a whole. HR department of the Union Bank also practice SHRM to align the goal
of the organization with the employee or the goal of other department.

When human resource department of Union bank strategically develop its goal for recruiting,
training, or compensating based on the goal of the organization then HR department of Union
bank interact with the other department within the organization. They first want to identify the
goal and need of other department and match their goal with the goal and need of the HR
department. As a result Human resource department of Union Bank reflect the goal of the whole
organization and SHRM utilize the talent and opportunity within the HR department and make
other department strong.

2. Personnel Planning and Recruiting:

 Forecast HR Needs

Personnel planning aims to forecast HR needs or HR demand. To forecast HR Needs Union

Bank basically uses The Scatter Plot. Every year they apply for new branches to open to
Bangladesh Bank. The amount of new vacancies differs from in which location they are going to
open the branch. The amount is not constant; they provide employees as much as the branch
needs to operate in an effective way. So every year they do a forecast to assume how many
vacancies they need to fill for the new branches as well as the increasing demand from existing
branches, since their activity level also increased by this time.

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 Centralize or decentralize recruitment

Union bank follows centralize recruitment, since it’s easier to apply company’s strategic
priorities company-wide and Job specialization and cost reduction. They recruit employees for
all branches all over the country from head office as a part of centralize recruitment process. It
also removes duplication of job for branches situated nearly.

 Internal and External Recruitment:

Union Bank is established just a few years back. So for any new vacancies or whenever an
employee left the job they go for external recruitment, since they don’t have a large source of
internal recruitment. They arrange 2 or 3 seasons for external recruitment every year.

 Internal Sources of Candidates: To forecast the supply of internal candidates basically

they don’t follow any method yet, but they do follow a manual rating system where they
rate their employees for promotion. For branches the rater is the branch manager. Or
sometimes they promote the person for the vacant position, who worked under that
position and have a good rating and qualification to do the job. They follow a set time
period to promote employees for executive level its 3 year and for non-executive level its
2 year.

 External Sources of Candidates: For External recruitment Union Bank uses below
sources to attract the preferable candidates:

1. Posting ad on job sites

Ex- www.bdjobs.com
www.bdjobstoday.com
2. Print ads on national newspaper
Though they follow centralize recruitment process they print ads only on national
newspapers.
3. Print ads on professional journals
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4. Referrals
They always give priority to those candidates who are referred by any senior position
personnel like Head of HR, MD
5. Walk-ins
Sometimes they offer trainee or probationary position for a short period like one year.
If the candidate perform well they might recruit that employee as a permanent
employee.

3. Selection Process

Every Organization need to select the right candidates, because its performance always depends
in part on subordinates having the right skills and attributes. Union Bank follows a set of test to
ensure that they are recruiting the best candidates with preferred skills needed for a specific
position. Basically they take almost all tests in the selection process.

1. Personality tests:
As a Bank they always prefer candidates who have good knowledge about finance,
banking, transaction and foreign business policies. For this kind of requirement they
always look for conscientiousness people who are comprised of two related facets:
A. Achievement and dependability.
B. Punctual, organized and systematic

And Left-brained candidates who are Logical, Analytical, Objective and good at Critical
thinking.
For some positions they also preferred people who have Extroversion and right brained
candidates who are thoughtful, imaginative, subjective and creative at their work.

2. Intelligence Tests: They set various IQ test questions and check candidate’s memory,
vocabulary, verbal fluency, and numerical ability.
3. Aptitude tests: Since it’s a bank they give importance on a specific thing that is how good
the candidate is at numbers and calculation and economic analysis.
4. Situational Test: They also test candidates with different situational condition regarding
actual basic job tasks. They examine the candidates’ response towards the situation.

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5. Achievement tests: They also check what a person has already learned to measure his
“job knowledge”.
6. Physical Examination: Finally they do Physical Examination of selected candidates to
verify that the applicant meets the physical requirements of the position and to identify
any medical limitations you should take into account in placing the applicant.

 For background investigation and reference check Union Bank look into below sources of
information:
o Former employers: Not always, but whenever they doubt abbot any candidates,
they contact with the formal employer of that employee to know what was the
reason that he/she left that job.
o Educational institution
o Local police station
o Written references

4. Training and Development

Training is the process of teaching new or current employees the basic skills they need to perform
their jobs. These include knowledge, skills and behaviors that are important for successful job
performance.

Union Bank LTD is successful with the banking business and building skillful banking professionals
by proper HR practices. They put enormous efforts on their training department to train the
employees best. Union Bank LTD owns a well-developed training institute to serve and build their
employees better with a closely monitored way. Well-structured trainings are offered to the
employees to ensure the highest development of the employees those participates.

Employee’s orientation and foundation training

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For newly recruited employees Union Bank offer an orientation program. It helps new
employees to understand job objectives, goals, rules and regulation. A book containing
company’s details information also provided.

New candidate preferred most for the training. Every new candidate has to go through
foundation training. It is must for all new candidates. The duration of this training in 15 days.
The main reason for this training is to buildup base for the new candidate.

Existing Employees:

For existing employees they always provide training program in their own training center.
Bangladesh Institute of Bank Management (BIBM) is well known for its national level training
for employees all over Bangladesh. Union Bank LTD employees also go through this training to
better prepare themselves for the organizational tasks. They also have to attend lots of seminar.

Can’t do and won’t do:

For won’t do if the employees understand how to do the job but reluctant to do the job then that
employee marks will be deducted from ACR (it’s a performance appraisal which held in every
year) and it will affect his promotion.

If that employee not comfortable with the job then at first the branch will talked to him and tried
to solve the problem. If he wants to work in other branch the branch manager send a letter to the
HR department to transfer that employee to other branch. The branch manager works as a father.

For can’t do if the employees don’t know what to do and how to do or employees don’t have the
skills. They will provide with training.

Union Bank LTD follows both the on the job and off the job training methods for its employees to
make them more capable. But they prefer off the Job training over on the Job training

Off The Job Training:

In-house development centers

Union Bank LTD has their own training institution where they arrange trainings for their
employees. The trainers use realistic exercise, lecture courses and seminar to train the
employees. Many big officers from Bangladesh Bank visit as a guest speaker.

BIBM’s part in order to train Bank Asia employees:

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Bangladesh Institute of Bank Management (BIBM) is well known for its national level training
for employees all over Bangladesh. Union Bank LTD employees also go through this training to
better prepare themselves for the organizational tasks.

On The Job Training:

Job rotation

Union Bank LTD rotates its employees from department to department to expand their
knowledge, skills, and abilities.

Informal learning

Majority of Union Bank LTD employees learn through informal means of performing their jobs
on a daily basis.

Coaching/Understudy approach

Union Bank LTD held 2 meetings in a month with every employees where divisions head and
branch manager they asked employees if they have any problem and how to improve and what
they really want. Division manager and branch manager act as a teacher.

Evaluating the training effort:

For evaluation they used spot test or surprise test and they also have written exam after the
training session.

Trainings that are offered from Union Bank LTD to its employees:

 Foundation course
 General Banking
 Banking Laws and regulations
 Customer service Intelligence
 Foreign exchange risk management
 Training at another institute

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5. Performance Appraisal

Performance appraisal means evaluating employee’s current or past performance relative to his
or her performance standards. Performance appraisal mainly used for promotion decisions and
salary raise of employer’s. Appraisal also helps to identifying employee strengths and weakness.
It’s useful for career planning.

Union Bank LTD also used performance appraisal to evaluate their employees. They use
performance appraisal once a year. In the Union Bank LTD reporting boss used this performance
appraisal to evaluate employees.

Union Bank doesn’t use any types of method to evaluate the performance of the employee.

Types of test they use for performance appraisal:

 Written or Manually
 Oral
 Honesty
 Punctuality

They also motivate their employees to note down what He/She did all day long. This kind of
performance appraisal done by immediate supervisor.

Feedback System:

Union Bank LTD use 360 degree feedback system to evaluate the performance of the employees.
360 degree feedback means employee receives feedback from peers, bosses or supervisors,
subordinates, peers and internal and external customers.

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6. Benefits offered

Union bank provide both financial and non-financial benefits to the employees. They mostly
provide financial incentives to the employees. They also provide some non-financial benefits.

Financial Benefits:

Union bank provide some sort of financial benefits besides basic salary such as bonuses.
Company provides vehicle for the executives and also provides maintenance cost for those
vehicle.

Non-Financial Benefits:

As non-financial benefits Union bank provides supplementary benefits and some sort of special
retirement services benefits.

Supplementary benefits:

Union bank provide supplementary benefits such as:

 benefits for time not work

 Vacations and holidays
 Sick leaves
 Parental leaves

This organization gives benefits for time when employees are not worked. They provide this
service only in severe cases. For example, if any accident occurred with an employee and doctor
suggested him/her for a one year bed rest then he/she will get full salary for first three months
and half salary for next three months and he/she won’t get any salary for the rest of his/her
leaves. Normally an employee gets one year leaves in his whole service life.

The employees of Union bank also get some vacation in their service time. Normally, this bank
provide 15 days mandatory vacation to all employees which is declared by Bangladesh Bank.
Casually an employee can get highest 3 days of vacation at a straight.

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They also provide 14 days as a sick leaves to the employees. But employees have to show valid
documents to get this leaves.

This bank also provides parental leaves basically for women in case of pregnancy. For male,
there is no parental leave but they can take 3 days in severe cases.

If any employee doesn’t miss any working day then it will help employee to get a decent marks
in the yearly appraisal report which will help employee to get promotion and others incentives.

Special Benefits:

There are some special benefits for the employees of Union bank such as provident fund and
Gratuity.

This is a special retirement savings scheme sponsored by the employer which allows an
employee of Union bank to save 10% of their basic salary every month. The savings will provide
by the employer by 100%. To get the fund from employer, employees must work on the
company for minimum 5 years. If an employee leave the job before 5 years then employer
doesn’t pay their portion of Provident fund at the time of termination, only employees
contribution will paid back in this case.

Insurance benefits:

Union bank doesn’t provide any insurance benefit yet but they are working on it. They are
hopeful to provide insurance service to their employees very soon.

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Recommendations
However from our finding we can say that Union bank has a really nice HRM with a great
strategy and they tried their best to develop those polices for betterment of their employees as
well as for whole organization. But there is nothing called 100% perfect, they also have some
shortcoming. Since they started their operation few years back, they don’t have any choice to
recruit people from internally, so they have to go for an external recruitment whenever they need
more employees. Many times it’s often caused problem for the organization. And the second
negative point about their HRM policy is that they don’t have any permanent or advance method
for performance appraisal, besides they just follow manual rating system and don’t have any
developed system to rate each employee. So we think if they practice any advance appraisal
method and work to develop it time to time it will boost their overall HR policy. And they don’t
evaluate whether there is any can’t do and won’t do issue. So we think first they should evaluate
is there other problems that causes less productivity rather than giving training. Another thing
they don’t take any step to courage employees to avoid unnecessary leaves, which might the
employees would attend if they get any bonus or other benefits. Finally they don’t have any fixed
gratuity giving policy for the employee. They should develop a good gratuity policy for their
employee.

Conclusion

We think by doing this project and talk to a HR people, who actively work with the HR policies,
we came to know that HRM is really an important part for any business unit. The HR department
is an integral and proactive part of management and strategic plan. HRM evaluate the use and
satisfaction among other departments. For a better workplace HRM strategic plans must meet the
organizations goal and mission.

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References
https://www.unionbank.com.bd/

G. Dessler, Human Resources Management, 12th edition.

https://managementhelp.org/

https://alison.com/tag/management

Few Pictures from our interview season:

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