Letter of Transmittal

25, January, 2019

Supervisor
Salma Akther
Assistant Professor
Department of Management Studies.
Jagannath University, Dhaka, Bangladesh.

Subject: Submission of the B.B.A. Internship Report.

Dear Mam,
With great pleasure, I have completed this internship report on the “Compensation System
and Its Impact on Employee Satisfaction: A Study on Rupali Bank Limited”. Hopefully this
report will provide you a good insight about the compensation system and its impact on
employee satisfaction of Rupali Bank Limited.
It was a wonderful experience working on this topic. I would, therefore, thank you for giving
me the opportunity to undertake the preparation of this study. I am grateful for your kind co-
operation and immense support.
To prepare this report I have tried my best to accumulate relevant information from all
available sources.

Sincerely yours

…………………………..
Ritu Pramanik
ID: B140202049
Session: 2014-2015 (10th Batch), Sec- A
BBA, Department of Management Studies
Jagannath University, Dhaka-1100.

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 Declaration

I do hereby declare that this internship report titled “Compensation System and Its Impact
on Employee Satisfaction: A Study on Rupali Bank Limited” submitted by me to Salma
Akther, Assistant Professor, Department of Management Studies, Jagannath
University, for the degree of Bachelor of Business Administration is an original work.

………………………
Ritu Pramanik
ID: B140202049
Session: 2014-2015 (10th Batch), Sec- A
BBA, Department of Management Studies
Jagannath University, Dhaka-1100.

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 Certificate of Supervisor

This is certified that” Ritu Pramanik” BBA 10th Batch, Department of Management Studies,
and holding ID No: B140202049, has completed the internship report on “Compensation
System and Its Impact on Employee Satisfaction: A Study on Rupali Bank Limited”
under my supervision. I have fully supervised her effort in the process of completing the
report. This study is submitted for the part of fulfillment of the degree of Bachelor of
Business Administration in the concentration of Department of Management Studies, Faculty
of Business Studies, Jagannath University.

I hereby acknowledge her work and wish her all the prosperity and success.

……………………….
Salma Akther
Assistant Professor
Department of Management Studies
Jagannath University, Dhaka-1100.

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 Table of Contents
Chapter Subject Page

No.
Letter of Transmittal i
Declaration ii
Certificate of Supervisor iii
Table of Contents iv
List of Tables vii
List of Figures viii
List of Abbreviations ix
Acknowledgement x
Executive Summary xi

Chapter -1 Introduction (1-4)

1.1 Introduction 1
1.2 Background of the Study 1
1.3 Objectives of the Study 2
1.3.1 General Objectives 2
1.3.2 Specific Objectives 2
1.4 Scope of the Report 3
1.5 Limitations of the Study 3

Chapter-2 Organizational Overview (5-10)

2.1 Historical Background of Rupali Bank Limited 5
2.2 Hierarchy of The Organization 6
2.3 Vision of The Organization 7
2.4 Mission of The Organization 7
2.5 Objectives of The Organization 7
2.6 Goals of The Organization 8
2.7 Corporate Social Responsibility(CSR) 8
2.8 Products and Services of The Organization 9
2.8.1 Deposits 9
2.8.2 Loan/Advance 9
2.8.3 Money Transfer 9
2.8.4 Others banking activities 10
2. Others Non-Banking Services 10

Chapter-3 Research Methodology (11-15)

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 3.1 Research Methodology 11
3.2 Data sources 11
3.2.1 Primary Data 11
3.2.2 Secondary Data 12
3.3 Research Design 12
3.4 Field Work 12
3.5 Sampling and Sample Size 12
3.6 Questionnaire Development 14
3.6 Scaling Technique 15
3.7 Survey Questionnaire and Depth Interview 15
3.8 Data Processing And Analysis Plan 15

Chapter-4 Compensation and Employee Satisfaction (16-27)

4.1 Compensation 16
4.2 Different Compensation packages 16
4.2.1 Traditional Compensation Systems 17
4.2.2 Modern Compensation Systems 17
4.3 The Components of Compensation System 18
4.3.1 Job Descriptions 18
4.3.1 Job Descriptions 18
4.3.3 Job Evaluations 18
4.4 Purposes of Compensation 18
4.5 Types of Compensation 19
4.5.1 Intrinsic Versus Extrinsic Compensation 20
4.5.2 Financial Versus Non-Financial Compensation 20
4.6 Compensation System of Rupali Bank Limited 20
4.6.1 Financial Benefits 20
4.6.1.1 Fair Basic Salary 21
4.6.1.2 Bonus 21
4.6.1.3 Housing Loan 22
4.6.1.5 Advances against provident fund 22
4.6.1.6 Lunch benefit 22
4.6.1.7 Medical allowances 22
4.6.1.8 Transportation 22
4.6.1.9 Hospitalization benefit 23
4.6.1.10 Maternity benefit 23
4.6.1.11 Children education 23
4.6.1.12 Evening banking 23
4.6.1.13 Welfare fund 23
4.6.1.14 Others 23
4.6.2 Non-Financial Benefits 24
4.7 Employee Satisfaction 24
4.8 Importance of Employee Satisfaction 25
4.8.1 Loyalty 25

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 4.8.2 Low turnover rate 25
4.8.3 Better service and customer satisfaction 25
4.8.4 Higher profitability 25
4.9 Measurement of Employee Satisfaction 26
4.10 Employee Satisfaction of Rupali Bank Limited 27

Chapter-5 Findings and Analysis (28-39)

5.1 Findings 28
5.2 Analysis 28

Chapter-6 Recommendation & Conclusion (39-40)

6.1 Recommendations 39
6.2 Conclusion 40
References 41
Books 41
Websites 41
Appendix (xii-
xiv)
Questionnaire xii

List of Tables

vi
Table No Name Page No

1 Sample Plan 14
2 Salary Table of Employees Based on Pay Scale 21
3 Employee Satisfaction with Basic Salary 28
4 Employee Satisfaction with Bonus 29
5 Employee Satisfaction with Promotional Oppurtunity 30
6 Increment and Monetary Policy 30
7 Performance Appraisal and Employee Satisfaction 31
8 Profit Sharing and Employee Satisfaction 32
9 Annual Paid Leaves and Employee Satisfaction 32
10 Transportation Facility and Employee Satisfaction 33
11 Worklife Scheduling 34
12 Job Continuation 34
13 Retirement Policy 35
14 Enjoying the Job 36
15 Known with the Compensation Policy 36
16 Satisfied with the Current Policy 37

List of Figures

vii
Figure Name Page No

No

viii
 1 Organizational Hierarchy of Rupali Bank Ltd 6
2 Population and Sample Size Determination 13
3 Types of Compensation 19
4 Cycle of Employee Satisfaction 26
5 Employee Satisfaction with Basic Salary 29
6 Employee Satisfaction with Bonus 29
7 Employee Satisfaction with Promotional Policy 30
8 Employee Satisfaction with Increment 31
9 Performance Appraisal and Employee Satisfaction 31
10 Profit Sharing and Employee Satiafaction 32
11 Employee Satisfaction with Annual Paid Leaves 33
12 Transportation and Employee Satisfaction 33
13 Worklife Scheduling and Balance 34
14 Continuation of Job 35
15 Satisfaction with the Pension Policy 35
16 Enjoying the Job 36
17 Known with the Compensation Policy 37
18 Satisfaction with the Current Compensation Policy 37
19 RBL’s Area of Improvement 38

List of Abbreviations

RBL= Rupali Bank Limited.

ix
HRM= Human Resource Management.

HRD= Human Resource Department.

Acknowledgement

x
The internship report on “Compensation System and Its Impact on Employee
Satisfaction: A Study on Rupali Bank Limited” is hoped to be one of the best report. It
required a lot of studies to complete this internship report successfully. A report of such
proportion could not be completed without the assistance of some benevolent people whom I
must thank.

I would like to particularly thank my supervisor Salma Akther, Assistant Professor,

Department of Management Studies, Jagannath University, who gave me lots of inspiration,
guidance, support and encouragement. She read every drafts, pointed out the mistakes and
helped me to clarify my ideas. Her broad and profound knowledge gave me great inspiration
as well as great help.

I would also like to thank all my teachers who gave me continuous help, advice and
encouragement during my academic studies at Jagannath University for exploring my
knowledge.

I also like to thanks all my friends who gave me continuous support during my academic
studies at Jagannath University.

Finally, I offer my regards and blessings to all of those who supported me in every respect
during this internship report.

Thanks you all for special help to me.

…………………………..
Ritu Pramanik
Id: B-140202049
BBA, 10th Batch, Sec- A
Department of Management Studies
Jagannath University, Dhaka-1100.

xi
 Executive summary
This report is prepared during the internship period and on the basis of information collected
from the employees of Rupali Bank Limited.

The main purpose of this report is to determine the level of satisfaction of the employees on
the basis of the compensation system of Rupali Bank Limited. Here I have tried to show the
relation between compensation system of the bank and its impact on employee satisfaction
and finally how its impact the customer service.

The report followed an exploratory research by using quantitative data. The quantitative
technique was with a survey questionnaire with five point Likert scale of 50 respondents
from head office and two branches of the bank in Dhaka city. The result is shown in both
table and chart.

This report focus on the factors that will help the employees of the bank to know the
compensation system as well as the bank to develop the current compensation policy to
increase employee satisfaction level. I do believe that, this report also will be helpful for
further research.

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