Abstract

Introduction

Literature Review

Objectives of the report

Sources of Data

Methodology of the study

Scope of the study

Tools use for the study

Chapter-01

Section 1.1

Abstract
 Section 1.2
Introduction

The Rupali, Janata and Agrani Bank Limited are the full service scheduled commercial bank
in Bangladesh. These have both local and International Institutional shareholder. These
banks are primarily driven with a view of creating opportunities and pursuing market niches
not traditionally meet by conventional banks. The Rupali 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.

Today, The Rupali, Janata and Agrani Bank are the fastest growing banks in the country. In
order to support the planned growth of its distribution, network and its various business
segments, These banks are currently looking for impressive goal oriented, enthusiastic,
individuals for various business operations. The bank wants to build a profitable and socially
responsible financial institution. It carefully listen to the market and business potentials, It is
also assisting These bank and stakeholders to build a progressive, healthy, democratic and
poverty free Bangladesh.

The internship program of MBA is a partial requirement to take a taste of real life challenge
conducted by the intern. It is an important part of MBA program.

Section 1.3

Literature Review

Morris (1986) reported that :

Management Strategy and Employee relations

The research is focused on the response of the Bank to changes in the financial sector which
has been experiencing deregulation, increasing competition, technological innovation and an
increasingly discriminating public. It examines both changing business and employee
relations strategies and the links between the two. As greater diversity begins to exist
amongst the retail banks the study explores the Banks attempt to find itself a niche or adopt a
focus strategy. This paper is primarily concerned with Human Resource issues. Historically,
it has been the case that employee relations have been regarded as a “second order” strategy,
purely facilitative and not fully integrated into overall business strategy. Hence, there was
little consideration of unrest was such that labor was seen as a problem, as for instance in the
car industry. Although there has been a gradual rise in the number of personnel professionals
at Board level, these are still a minority. Lack of serious consideration of employee relations
has also been said to owe something to the dominance of financial control at this level and
the lack of union influence..

Torrington (1994) says that:

The recent emphasis on the human resource management, Torrington suggests that not only is
the management of labor being given more attention, but that the issues discussed are broader
and more strategic as well as tactical define strategic human resource management as “those
decisions and actions which concern the management of employees at all level in the business
and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage. Thus, unlike the traditional peripheral function of many
personnel managers, the newer style of human resource managers attempts to:

“Relate personnel practices to beliefs, to link each and every process of the recruitment,
induction, training, appraisal rewarding of individuals to an overall set of articulated beliefs
of organization”

Human resource management is seen as part of the movement away from concentration on
unions and collective bargaining, to an emphasis on staff as individuals. Behind all is a belief
that it will release greater commitment from employees although one has to be careful to
examine the extent to new equal partnership between employers and employed, or are then
really offering a convert from of employee manipulation dressed up as mutuality.

One must be wary of evaluating HRM simply by the range of activity being undertaken.
HRM is about both new processes new outcomes. The existence of the former does not
guarantee the latter.

Section 1.4

Objectives of the report

The broad objective of the report is to provide overall benefits of practicing Human Resource
Management Practices in the Schedule Bank of Bangladesh.

Specific objectives --
➢ To describe the Human Resource Management Practices of the Schedule Bank
Limited.
➢ To find-out the selection, training, promotion and development process in HRM
division of the Schedule Bank Limited.
➢ To recommend necessary steps to overcome the Problems and make possible
improvement in the future.
 Section 1.5

Sources of Data
1.5 Sources of Data Collection:
The data are collected from two sources --
I. Primary sources:
Practical banking work.
➢ Discussion with the employees of the City Bank limited.
➢ Personal Observation.

II. Secondary sources:

➢ Annual report, publications, training materials

➢ Periodical statements of the bank, brochures, booklets etc.
➢ Official Website of the City Bank Ltd.
➢ Documentary file of the City Bank Ltd.

1.6 Data Process and Analysis:

➢ Collected information based on my own experience.

➢ Detailed analysis, working variable future projection and
working definitions are incorporated in the report.

Section 1.6

Methodology of the study

For preparing this report that was assigned on the benefits of the practice of HRM in the
Schedule bank of Bangladesh..As student of BBA During the course period, we the collect
necessary information from different sources.
I have used both qualitative and quantitative method for teaming up the data and information
collected through primary and secondary sources. This study followed some methodology to
find out the fact and feature of the Bank which are given as follows:
To conduct the study follows methodology were used
 Such as : 01. Primary source and
02. Secondary source
Primary sources:
To collect the primary data were used a structured questionnaire and interview of the officer
of these bank .
Secondary sources:
It includes annual report, general report, investment manual, general, general banking
manual, selected books, journals and other publication etc
The type of method used in this report is mainly of a descriptive nature. To meet the
objectives of the study, I realized that a single method would not be effective.
Formal & oral discussion, direct observation, and printed papers of the Bank were
found useful. Both primary and secondary sources were used he

Analysis and Findings

Of

Rupali Bank Limited

Janata Bank Limited

Agrani Bank Limited

Human Resources (HR)

Human resources (HR) are the people who are ready, willing, and able to contribute to an

organizations success.Human resources (HR): Hiring activities, including recruitment,

interviewing, training, layoff planning, including out placement, and counseling.

Human resources (HR) segment contains the full set of capabilities needed to manager,

schedule. Pay, and hire the people who make a company run. It includes payroll, benefits and

administration, applicant data administration, personal development planning, workforce

planning, schedule and shift planning, time management, and travel expense accounting.

Human Resources Management

Human resources management is concerned with the people dimension in management.
Every organization is made up of people acquiring their services developing their skills
motivating them to high levels of performance and ensuring right people right time and right
place.

Wright and McMahan says (1999)“The pattern of planned human resource activities
intended to enable an organization to achieve its goals”

Again, Miles and Snow says (1984)“A human resource system that is tailored to the

demands of the business strategy”

. So, Human resource management is the process of acquiring, training, appraising, and

compensating employees, and attending to their labor relations, health and safety, and

fairness concerns.

Functions of Human resource:

Human Resource Management is a process consisting of four functions, these are Staffing,
Training & Development, Motivation, Maintenance .For a HR manager for maintaining an
effective workforce it is necessary to know these functions.

Staffing: concerned with sourcing & hiring qualified employees.

The key areas of staffing are:

• Strategic Human Resource Planning: HRP help the organization to achieve the
corporate goals by adopting and adjusting with changing situations for example rapid
technological change
• Recruiting: The process of discovering potential job candidates by external & internal
sources.
• Selection: Choosing the best incumbent for the organization.
Training & Development: concerned with assisting employees to develop up-to- date
skills, knowledge & ability.

The major area of Training & Development is:

•Orientation: The activities involved in introducing new employees to the organization

& their work units.
• Effective Training
• Employee Development: Future oriented training focusing on the personal growth of
the employees.
• Carrier Development: The sequence of positions that a person has held over his/her
life.
Motivation: Helping employees exert high energy level.

Some important factors of Motivation are:

*Motivational Theory & job Design.

• Performance Appraisal
• Rewards & Compensation
• Employee Benefits
• Discipline

Rupali Bank Limited

Divisions of Head Office

Sl# Division Functions

1. Board & MD’s Secretariat Deals with Shares
Division
2. Human Resource Division Recruitment, promotion, training,
Disciplinary action, dismiss, discharge,
retirement, pay and allowances, career
plan, trade union etc.
3. Establishment division Engineering, transport, telephone, telex,
fax, security system, real estate etc.
4. Credit Division All sorts of credit, its allocation,
estimation, sanction, etc.
5. Credit Monitor and recovery Monitoring of credit, classification,
Division evaluation and recovery of credit etc.
6. International Division All types of works with foreign banks or
organizations.
7. Central Accounts Division Correct accounts, financial evaluation and
forecast of future financial events of the
bank.
8. Branch Operation Division Management of branches, control,
monitoring and evaluation of performance
of branches of the bank.
9. General Services & Develop Looks for improvement services, sets
Division strategy for business promotion and
development of the bank.
10. Audit Division Conduct internal audits of the branches.
 11. Information Technology Mainly looks after the computer system,
Division provides necessary support to the
branches in regards to computer and
electronic equipments.
12. Lease Financing & Law Division Deal with the lease financing and help the
bank to move with its legal aspects.

Divisions Of Head Office ( Organizational Structure )

Division Name Floor Of Head Office Building

Board Division 3rd Floor

Human Resources Division 4th Floor

Establishment Division 12th Floor

Engineering Division 4th Floor

International Division 5th Floor

Credit Division 6th Floor

Credit Monitoring & Recovery Division 7th Floor

Business Promotion Division 8th Floor

Audit Division 5th Floor

Central Accounting Division 9th Floor

Information Technology Division 10th Floor

Branches Operation Division 11th Floor

Financial Analysis of Information

As at 31st December (In million taka)

2003 2004 2005 2006 2007

 As at 31st December (In million taka)

2003 2004 2005 2006 2007

Authorized
Capital 5000.00 5000.00 5000.00 5000.00 5000.00

Paid-up Capital 200.00 200.00 200.00 200.00 400.00

Reserve Fund &

other Reserve 1338.29 1740.8 1931.76 2107.76 2481.21

Deposits 32291.00 33730.10 35852.60 39789.71 44443.03

Advance 23583.00 26189.50 26282.69 27542.33 32639.68

Investments 4165.80 4400.80 4938.86 5742.12 5536.84

Import Business 12573.00 10500.00 12141.30 18024.30 26033.80

Export Business 11228.00 10214.00 11684.20 13670.50 15721.10

Bridge Finance 8.40 8.30 7.90 7.80 7.29

Total Income 3660.20 3823.50 3569.30 3455.32 4435.90

Total Expenditure 2488.70 2575.70 2704.10 2830.41 3063.27

Pre-tax Profit 626.50 724.00 345.20 244.90 1042.63

Net Profit 407.20 398.20 189.80 134.70 573.45

Total Assets 39086.30 41895.90 43502.25 46593.28 52671.44

Foxed Assets 565.60 591.30 582.60 545.40 546.48

 Bank' s Deposit of RBL [Million]
50000
45000 44443.03
40000 39789.71
35852.6
35000 32291 33730.1
30000

25000
20000
15000
10000
5000
0
2001 2002 2003 2004 2005

Details of profit :

Parcentage of Shareholdings

Details of HR

Director (15.52%) Govt (0.0003%)

Bank & financial Ins titution (2.93%) Co- Operative Societies (4.32%)
Non Res ident Banglades his (5.28%) Other Ins titution (9.10%)
General Public (62.25%)

Condition of HR

Division wise Loans & Advances

Dhaka Division (71.69%) Chittagong Division (14.15%)

Sylhet Division (3.80%) Barisal Division (1.61%)
Khulna Division (4.20%) Rajshahi Division (4.15%)
Other Side in Bangladesh (0.40%)
2.6 Departments of the City Bank Limited

The City Bank Limited has 26 departments in three different criteria.

The Departments are-Business:

➢ Support:
➢ Operations:
➢ HRM department
➢ Accounting
➢ Others
Human Resource Management includes following aspects:

Staffing

-Recruitment

-Selection

Maintenance HRM Training &

Development

Motivation &
empowerment

Figure 3: aspects of HRM

HUMAN RESOURCE PLANNING

Human resource planning (HRP) is a process and a set of activities undertaken to forecast
an organization’s labor demand (requirements) and internal labor supply (availabilities),
to compare these projections to determine employment gaps and to develop action plans
for addressing these gaps. Action plans include staffing planning. The basic elements of
virtually any organization’s HRP are shown in Exhibit 1.2. As can be seen, the HRP
process involves five sequential steps.

❑ Determine future human resource requirements

❑ Determine future human resource availabilities
❑ Conducting external and internal environmental scanning
❑ Reconciling requirements and availabilities—that is, determining gaps (shortages
and surpluses) between the two.
❑ Developing action plans to close the projected gaps.
EXHIBIT 1.2 – HUMAN RESOURCE PLANNING (HRP) PROCESS

Requirements Analysis Availability Analysis

(Demand) (Supply)

Current
Business Workforce
Plans

External and • Losses

Internal • Internal
moves
Organization Environmental • Accessions
Plans Scanning

Forecasted Forecasted
Reconciliation HR
HR (Gaps) Availabilities
Requirements

Action

Planning

Other
Staffing
HR
Activities
Activities
4.4 Recruitment Process:

For the recruitment Rupali bank Limited use the following process

❑ Direct Recruitment:
The the Rupali Bank Limited has a CV Bank in HRD. In direct recruitment the HRD short
list the CVs from the CV Bank or collect the CVs that referred by the employees of The
Rupali Bank Limited for direct interview for the specific selected post.

❑ Through Advertisement:
Sometimes the HRD of the Rupali Bank Limited can’t able to short list CVs for specific post
from their CV Bank. In this situation the HRD advertise of recruitment in specific post
mentioning the job description with the minimum requirement that the applicant should have
for the post. And collect CVs which are being specified according to the requirement that has
been published in the advertisement. After that the CVs will be short listed and the
recruitment procedure will go according to the direct recruitment process.

❑ Internal Job Posting:

For any kind of internal job search it will operate through a circular as lotus notes or board
notice. Any existing staff other than permanent also HR Temporary (minimum one year with
The City Bank Limited) & outsource staff (minimum three years with The City Bank
Limited). Only the Managing Director & Chief Executive Officer can allow exceptions. Job
specification will be clarified in that circular and interested candidates will have full liberty to
apply subsequent to the clearance from respective line manager.

Promotion:
Promotion can be used as an effective tool for recruitment as it can serve the internal purpose
for recruitment within the organization. Promotion may also take place if the job size
increased and the MD/ Management Committee decide(s) to upgrade the job upon
recommendation of the respective Department Head or Line Manager. The process of
upgrading a job will have to be undertaken through a process of reviewing the Job Content,
Responsibilities, Dimensions, Changes in the Organization Structure, etc. Full justification of
the necessity of the change must be presented. Promotion is a continuous process by which
the employee motivates for batter work; get the price for employee’s better work. In The City
Bank there are two types of promotions-
Regular Promotion: Regular promotion is given according to the employee’s regular
performance. When the supervisor or department head of the employee evaluate that his
employee is become an asset for the bank and deserve promotion then the supervisor or the
department head take a promotion appraisal form from HRD and recommended the employee
for promotion.

PM Promotion: Performance Matter (PM) is the annual performance report of individual

employee of The City Bank Limited. According to Performance Matter ranking scale the
employee can get promotion in the job grade of their own.

Transfer on deputation:
Based on requirements and needs bank can adopt that policy after taking the approval from
MD’s Offices.

Training:

After recruiting a potential candidate the next important function of HRD is to orient the new
entrant to the organization and providing the employees with all the necessary knowledge
about their duties and responsibilities. This is done to ensure effective input from the
employees into the organization thus, their most efficient level of performance. The training
program used in the organization also ensures employee retention to The City Bank Limited
spending in training programs for employees is not an expense, but an investment.

The training program includes:

➢ Orientation Training
➢ In-house training
➢ Job specific training
➢ Need based local/foreign training
➢ Peer or Supervisor’s coaching
➢ E-learning: Online training and evaluation

4.7 Performance Management:

Performance appraisal is the process of assessing employee's past performance, primarily for
reward, promotion and staff development purposes. Performance appraisal is a process that
identifies, evaluates and develops employee performance to meet organizational goals.
4.8 Job Evaluation:

Meaning of Job evaluation: Job evaluation is an--

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. In the points system various
aspects or parts of the job such as education and experience required to perform the job are
assessed and a points value awarded- the higher the educational requirements of the job the
higher the points scored.

4.8.1 Objectives of Job Evaluation:

➢ To determine equitable wages differential between different jobs in the organizations.
➢ To minimize wage discrimination on the basis of age, sex, caste, region, religion etc.
➢ To enable management to gauge and control the payroll costs.
4.4.1 Recruitment Budget:

➢ Managing Director & CEO will determine and analyze the necessity of manpower
based on recruitment required by the Departments and projected budget based on the
year after discussing with different department heads. Therefore, it is the responsibility
of the management to examine the work load and carry out the job analysis and as well
as looking into the real requirement of employees under various categories, to see
whether an additional hand is really necessary
➢ Board of directors holds the authority to finally decide any matter regarding any sort of
recruitment. Besides they are the supreme authority to create any kind of new position.
➢ THE CITY Bank must recognize the importance of manpower estimation and
accordingly an Organ gram should be prepared for the Bank and for each Division &
Branch. The Organ gram shall however, not be rigid, it may be reviewed and revised
when necessary from time to time. Subject to review from time to time, the competent
authority as per power delegated by the Board will make the appointments.
4.4.2 Recruitment Policy:

➢ All regular employees will appointed by the Managing Director.

➢ All HR contract and outsource contract employees will be appointed by The Head of
Human Resource Division.
➢ The schedule of recruitment will be created according to the Service Level Agreement
(SLA).
➢ The interview board will with The Head of Department of that post, The Supporting
Department Head and The Head of HRD.
4.5 Administration:

The Administration is the wing that maintains and controls the employees of The City Bank
Limited. The administration has to go with the following work.

Administration

Leave Probation & Promotion Resignation

confirmation

Figure 6: Administration wings of the Rupali Bank ltd.

Benefits of employees:
Employee safety:
The Rupali Bank Limited provides the employee safety. It ensure the all kinds of job safety
such as insurance of each employee not this provide insurance to the labor.

Employee health:

Free medical checkup; provide health care and necessary medical facilities for each
employee.

Employee working condition:

The working condition of employee is very hygienic because it always based on "Right work
for the Right person."
Incentives of The Rupali Bank Limited:

Incentives add to base pay: It controls costs because the employee is being paid for his/her
extra effort and for the benefits brought to the organization.

Motivates employees;

➢ Individual
➢ Group
➢ Company-wide

3.1 Definition of Selection:

The selection process is a series of specific steps used to decide which recruits should be
hired. The process begins when recruits apply for employment and ends with the hiring
decision. According to Dale Yoder, “selection is the process by which candidates for
employment are divided into two classes those who will be offered for employment and those
who will not.

The selection process typically consists of eight (8) steps:

Step-1 Step-2 Step-3

Initial screening interview Completing application form Employment tests

Step-6 Step-5 Step-4

Conditional job offer Background investigation Comprehensive interview

Step-7 Step-8

Medical or physical examination Permanent job offer

 Figure 4: Selection process

3.2 Definition of Training:

Training consists of planned programs designed to improve performance at the individual,

group and organizational or organizational levels. Improved performance in turn implies that
there have been measurable changes in knowledge, skills, attitude and social behavior.

According to Griffen, “training usually refers to the teaching operational or technical

employees how to do the job for which they are hired.”

Training approach

On the job training Off the job training

Class room lectures

Videos & films Website
training

Programmed instruction

Figure 5: Training approach

.3 Definition of Development:Employee development, by design, is more future oriented

and more concerned with education than employee job specific training. According to
Griffen, “development refers to teaching managers and professionals the skill needed for both
present and future jobs.”Employee developments methods are
 ➢ Job rotation
➢ Assistant- to positions
➢ Committee assignment
➢ Lecture courses & seminars
. Training and Development program of The Rupali Bank Limited:

Human Resource development is an essential pre-requisite to achieving organizational goals.

Continuous training of the employees and executives is aimed at capacity and professional
skill building throughout the year .The City Bank Limited has an established resourceful
training institute .Experienced banker’s work as faculty members under the direct guidance of
a director .Training is a learning experience in that it seeks a relatively permanent change in
an individual that will improve his /her ability to perform on the job. We typically say
training can involve the changing of skill, knowledge, attitudes or social behavior. It is
application of knowledge.

Development is a related process. It covers not only those activities which improve job
performance but also those which bring growth of the personality; help individuals to the
progress toward maturity and actualization of their potential capacities so that they become
not only good employees but better men and women. The most popular training methods
used by The City Bank Limited can be classified as either on the job or off the job training.

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.

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, two many mirrors, and all the frills.
Training Needs and Priorities of The Rupali Bank Limited:

Now that we have an understanding of what should include we can look at how we assess
whether there is a need for training. We propose that management can determine this by
answering four questions:
(1) What are the organization's goals?
(2) What tasks must be completed to achieve these goals?
(3) What behaviors are necessary for each job incumbent to complete his/her assigned tasks?
(4) What deficiencies, if any, do incumbent have in the skills, knowledge or attitudes required
to perform the necessary behaviors?
Training will be its judged by its contribution to performance where performance is a
functional of skills, abilities, motivation, and the opportunity to perform. Manager must
compare the value received from the increase in performance. That can be attributed to
training with the costs incurred in that training. The desire for improved worker productivity
cannot e approached in a vacuum. The benefits that accrue from training must exceed the
costs incurred.
Rewards & Control Systems:

Rewards & Control Systems are meticulously refined to reinforce behavior that is deemed
pivotal to succession the market place. The employees who don't adhere to the cultural and
behavioral norms of the organization, due to dissonance between the values of the individual
and the values of the organization; are given a clear warning to either shape up or ship out.
 Janata Bank
BANK PROFILE

Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized
capital of BDT. 20000.00 million (Approx. US$ 250 million), paid up capital of Tk. 19140.00
million, reserve of Tk.17976.20 million. The Bank has a total asset of Tk. 586082.98 million as
on 31st December 2013. Immediately after the emergence of Bangladesh in 1971, the erstwhile
United Bank Limited and Union Bank Limited were merged and renamed as Janata Bank. On
15th November, 2007 the bank has been corporatized and renamed as Janata Bank
Limited. Janata Bank Limited currently operates through 900 branches including 4 overseas
branches in United Arab Emirates. It is linked with 1239 foreign correspondents all over the
world. The Bank employs more than 15(fifteen) thousand personnel’s. The mission of the bank is
to actively participate in the socio- economic development of the nation by operating a
commercially sound banking organization, providing credits to viable borrowers, efficiently
delivered and competitively priced, simultaneously protecting depositor’s funds and providing a
satisfactory return on equity to the owners. The Board of Directors is composed of 13 (thirteen)
members headed by a Chairman. The Directors are representatives from both public and private
sectors. The Bank is headed by the Chief Executive Officer & Managing Director, who is a
reputed banker. The corporate head office of the Bank is located in the capital city Dhaka with
10 (ten) Divisions comprising of 44 Departments.

Human Resource Planning:

HR Planning is the process which ensures that it has a right number and kinds of people at the
right places at the right time capable of effectively and efficiently completing assigned task to
achieve its organizational objectives. JBL has also a HR Plan which aims at ensuring optimal
employment and justified distribution of manpower throughout its branches and offices as per
organ gram. To simplify the
Prevailing HR practices adopting the modern technology and best practices Janata Bank is set to
review the existing policies.

Following are the priorities of HR planning for 2014

• To bring performance measurement and performance based incentive related activities of

HRM;
• Training need analysis and process development;

23
 • Preparation of training and development roadmap;
• Improvement of service benefit;
• Improvement of HR policies and procedures;
• Adoption of HR Accounting System;
• Employee Engagement and Employer Branding initiative taking

RECRUITMENT in JANATA BANK:

JANATA Bank Limited welcomes you to explore the world of progressive Banking in
Bangladesh. It is a state owned commercial bank and is catering the need of the mass business
people. 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:

24
Such involvement on the part of the hiring manager allows feedback as to whether or not the
recruiter’s decisions are consistent with the hiring manager’s Formal method includes:
1. Recruitment Advertising
2. Internet Recruiting
3. Employment Agencies
4. Public Job Service Agencies
5. Private, For-profit Agencies
6. Unions
7. Additional Recruiting Methods
8. Campus Recruiting
9. 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 won’t 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:

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.

Training, Learning and Development

Janata Bank Limited has created a learning environment through its robust on the job and
classroom training. To develop the skill of the fresh and young officers with banking knowledge,
current norms and practice, the bank has a wide range of Basic and Advanced level Training on
IT, Credit Risk Management, Foreign Exchange, Management & Leadership Development.
These are arranged and provided by bank’s own and other Training Institutions. In 2013, Janata
Bank Training institute, Dhaka and two other training centers situated at Rajshahi and Camilla

25
arranged as many as 321 training programs where 7861 employees of different grades
participated. Another 120 training programs are organized by
different training institutes where 727 employees participated.

HR Compensation System of JANATA Bank ltd:

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.

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 one’s 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.

Organizational Practice:
Janata Bank Limited usually provides more or less the above compensation, reward and
benefits. They provided financial compensation like Basic

a. salary,

b. Bonus,

c. Wages,

d. Incentives

Non-financial like Housing, Medical, Transportation, Insurance

26
 Human Resource Accounting

After recruiting and making the executives competent by providing adequate training, Human
Capital Accounting (HCA) is done to provide a means for making decisions involving the
recruitment, development, compensation and replacement of human resources on a "value for
money." JBL regularly works out and looks into some important areas of Human Resources
Accounting for mathematical and co-relational understanding on the main business factors. The
total value of Human Capital has been ascertained by present value of future earning model (Lev
& Schawrtz) at BDT 218,615.24 million in the year 2013 and BDT 205,132.34 million in 2012.
The following table projects the age-group-wise value in 2013 and 2012 respectively:

Category 2013 2012

Age Group Per capita No. of Total No. of Total Value
Value Employee Value Employee

27
 18 yrs – 29 4.35 1707 7429.31 2366 10,297.45
yrs
30 yrs – 39 7.44 3376 25130.42 2635 19,614.53
yrs
40 yrs – 49 12.13 2543 30834.48 3104 37,636.74
yrs
50 yrs – 59 19.75 7859 155221.03 6966 1,37,583.62
yrs
Total 15485 218615.24 15071 2,05,132.34

BENEFITS of HRM in JANATA Bank:

Research into Human Resource Management in JANATA bank ltd indicates that the factors that
really motivate employees are intrinsic ones which are based on meeting the personal needs of an
individual. Human beings have a number of key psychological needs including:
• The need to feel that you can do something well.
• The need to be part of a group.
• The need for respect and encouragement from others
These needs are typically met from non-financial rewards, for example, by providing
opportunities:
• for promotion
• to make decisions
• to contribute to a team
• to do a variety of tasks.

An employee of a govt. bank(Janata bank ltd) gets some benefits from the govt., these

Benefits are discussed in the following:

1. Annual leave: Govt provides 10 days casual leave to the employee of Janata bank ltd
each year without public holidays.
2. Festival leaves and bonus: The employees of this bank enjoy two times festival leave
and bonus each year equal to their basic with 6 days.
3. Sick leave:Employees get minimum 2.5 months and maximum 4 months sick leave.
4. Maternity leave: the employees of this bank enjoy 6 month maternity leave continuasly.
5. Pension: the employees of Janata bank ltd enjoyes the pension facilities.pension depends
on the last basic.it is given after retirement.
6. Gratuity :gratuity is provided on the basis of employees will.for example ..if an
employee want to deduct 10% of basis,after his or her retirement will get 10% gratuity
with interest.
7. Lunch facilities :the employees of this bank also enjoy the lunch facilities.the govt
provides tk 150 per day for lunch to the employee.

28
 8. Housing allowance :Govt provides housing allowance to the employees basis on the
place.such as an employee who works in any branch of Dhaka he will gets 60% housing
allowance of basic.an employee who works outpost he gets 40% housing allowance from
the govt.
9. House building loan: house building loan is also provided to the employees.house
building loans depends on the time and basic.an employee get such loan in aspecific rate
of basis at lower interest rate.employee can take this loan when they are in need,
10. Promotion: Promotion is given after three year each.It depends on the banking
Diploma,computer literacy,and employees performance.By promotionary employee can
take higher position

Social benefits:

1.Payment of Non- Govt. Teachers Salaries

2.Payment of Girl Students Scholarship/ Stipend /Upbitti & Primary Student Stipend
3.Payment of Army pension/Civil Pension
4.Payment of Widows, Divorcees and
Destitute Women Allowances
5.Payment of Old-age/ Disabled Allowances
6.Food procurement Bills
7.Issuance of Television License

29
30
 Agrani Bank limited
Strategic Objectives

Winning at least 7.00 percent share of deposits and 6.00 percent share ofloans and
advances of Bangladeshi market
Gaining competitive advantages by lowering overall cost compared to that of
competitors.
Overtaking competitors by providing quality customer service.
Achieving technological leadership among the peer group.
Strengthening the Bank’s brand recognition.
Contributing towards the economic well-being of the country by focusing particularly on
remittance, SME and agricultural sectors.

Ethical Standards

Be Trustworthy: We believe in mutual trust and treat our customers in a way so that
they can trust us.
Keep an Open Mind: For continuous improvement of our Bank we keep our minds open
to new ideas. We seek opinions and feedback from both customers and team members
through which our Bank will continue to grow.
Meet Obligations: Regardless of the circumstances, we do everything to gain the trust
and confidence of customers and clients by honoring our commitments and obligations.
Be Transparent: We are transparent in our dealings with customers and all stakeholders.
We ensure transparency by furnishing information through Bank’s website, journals.
Be involved with the Community: We remain involved in community-related issues
and activities, thereby demonstrating that our business is socially responsible.
Be Respectful: We treat all stakeholders with utmost respect and courtesy regardless of
differences, positions, titles, ages, or other types of distinctions.
Be Environment Conscious: We provide industrial financing decorously to keep the
environment free from pollution and health hazard.

Human Resource Planning

31
The flow of people into, through, and out of an organization is the main issue of human resource
planning. HR planning involves anticipating the need for labor and the supply of labor.The
benefits of an organization mainly depend on human resource planning. So it is also a curtail
issue for Agrani bank limited.

The following is their own model for human resource planning:

Human Resource Planning

1.Collect Information

A.From the external environment B.From inside the organization

Economy-general & specific industry Strategy

Technology Business plans
Competition Current human resource
Labor markets Rates of turnover & mobility
Government Regulation
Demograpic and social trends
Benchmarking & best practice
information

2.Forecast demand for human resources

A .Short term & long term B. Aggregate & Individual positions

3.Forecast supply of human resources

A .Internal supply B. External supply

4.Plan & conduct needed programs

A. Increase or reduce work force size B. Change skill mix C. Develop career plans

5.Feedback on planning process

A. Were forecasts accurate? B. Did programs meet needs?

Recruitment

32
 Recruiting is the process by which organizations locate and attract individuals to fill job
vacancies. Agrani Bank have a continuing need to recruit new employees to replace those who
leave or promoted and to permit organization growth. The recruitment process of Agrani Bank is
in the following chart:

The Recruitment Process of Agrani Bank Ltd

Receipt of Applications

Sorting out of Applications

Preparation of preliminary selected list

Holding Written Test where applicable

Conducting interview

Investigation of previous

Employment history

List of Desirable Candidates

List of Desirable Candidates

Final approval by competent authority

Physical Examination

Appointment & Placement

Figure: The recruitment flow chart of Agrani Bank Limited

Recruitment Sources of Agrani Bank Limited

33
First and foremost step of recruitment is collecting CVs from sources. There are two sources of
recruitment:
▪ Internal sources (within the organization)
▪ External sources (outside the organization)

• BIBM (Bangladesh Institute of

Bank Management)
Internal sources • IBA (Institute of Business
Administration)

• Different universities
• Competitors and other
External sources organizations
• Unsolicited applicants

Figure: Internal and external sources of recruitment of ABL

Staffs Assortment from Internal and External Sources

Source Percentage of Staffs
Internal source 20%
External source 80%

Recruitment
Internal
20%

External
80%

34
Human Resource Selection

Human resource selection is a process of measurement, decision making and evaluation. A good
selection system also should be fair to minorities and other protected group. To have an accurate
and fair selection system, an organization must use reliable and valid measures of job applicant
characteristics system. In our survey we have found that Agrani bank limited use a fair selection
process. The human resource selection process of Agrani Bank Limited is the following:

Human Resource Selection process

of Agrani Bank Limited

Decision Making Evaluation

Measurement Making sure that
Combining
Ensuring that seletion hiring decisions
information about a
test are reliable and increase the
person to make a
valid efficiency and
high decision
profitability

Figure: The human resource selection process of Agrani Bank Limited

Human Resource Training

Training is a proven instrument for human resources development. It presents a prime

opportunity to enhance the base of knowledge of employees. A structured training and

35
development program ensures to build up skilled workforce. Agrani Bank Training Institute has
been working hard for developing human resources full of potentiality, creativity, skill, integrity
and motivation. Agrani Bank Training Institute (ABTI) was established in 1976 and is entrusted
with the responsibility of designing course curriculum, reading materials, and course contents for
conducting training for the purpose of enhancing professionalism and administrative efficiency
of the executives and officers of the bank. Since its inception in 1976 till 2013, ABTI has
covered a total number of 70,037 executives/officers/staff under different banners of training
through 2116 courses/ workshops. ABL has covered 4,573 participants by conducting 101
courses/workshops in 2013 alone. Risk management is the key focus for banks. Keeping it in
mind, in 2013, ABTI has conducted workshops named & styled as ‘Risk Based Capital
Management’ in Banks, which has been designed for sixty four executives. For the year 2014, a
comprehensive need based training course curriculum has been designed by ABTI and the same
has duly been approved by Board of Directors, in which 7,890 participants will be included in
184 courses/workshops. In the training program of 2014, emphasis has been given on training up
the newly recruited officers by conducting banking foundation course. In this regard, ABTI
along with its 7 outreach centers will conduct banking foundation courses throughout the year.
Agrani Bank Training Institute has been working hard for developing human resources full of
potentiality, creativity, skill, integrity and motivation.
Compensation system

The system an organization uses to reward employees can play an important in the organization’s
efforts to gain a competitive advantages and to achieve its major objectives.Compensation
syetem should follow the followings:

• Attract and retaind the talent an organization needs

• Encourage employees to develop skill
• Motivate employees to perform effectively
• Support the type of culture

As an organization, Agrani Bank Limited use the following compensation system:

36
 Compensation
System

Direct Indirect
compnsation compensation

Projection
Incentive Programs Pay for time Service and
Base pay Merit pay pay Deferred pay not Worked perquisites

Salary Wage

Figure:Compensation system of Agrani Bank Limited

Human Resource Management and Development

Human Resource is the most valuable assets of an organization. Modern organizations are more
conscious about the best utilization of their human resourcesNow the Bank management is
facing many challenges arising from globalization, competition, social changes, profitability and
sustainability. They can address these challenges with the help of these human resources. The
success of any organization depends on the proper, efficient and effective management of the
human resources. HR Planning Division is doing some work in the name of human resource
management. The basic work of HR Planning Division is to formulate human resource
management policy, to maintain the personal file of every staff and officer, maintain the
performance appraisal, make the PRL list and inform to concerned employee in due time,
sanction increment, encashment of leave, settlement of retirement benefit,leave sanction inside
and outside of Bangladesh, permit higher studies, update the human resource management
information system and to verify the freedom fighter’s certificates from the related ministry.
Existing staff strength of ABL as on 31 December 2013 is given below:

37
The following initiative are taken in Agrani Bank Limited for HR development

a) Organogram : Corporatization has necesseciated the Bank to restructure its existing

organogram. As such, necessary steps have been taken to redefine the portfolios and functional
jurisdictions of GMs, DGMs and Heads of Zones.

b) Promotion: In order to remove the monotonous mood, increase social prestige, motivate
employees a number of 2,180 were given promotion.

c) HR information system: At the end of 2013, a total number of 14,005 employees are
working in ABL. The information of executives, officers and staffs is being updated regularly
through HR division.

d)Agrani Bank Limited’s Action plan for 2014:

The action plan 2014 are the followings:

• To fillup the vacant post through promotion and direct recruitment, by which the
Bank can maintain our productivity & service standard.
• To ensure the right man in right place in right time for maximizing our
profitability.

38
 • A four years term man power planning and organo-gram (2012-15) has been filled
up through promotion & recruitment. The Management has planned to depute
AGM as branch head in every ‘A’grade & district headquarter branches.
Benefits of HRM

By completing the survey we can found many benefits of HRM. The benefits of HRM practices
are in the following:

Overcome internal and external pressure in the organization

Recruitment of sufficient skilled employees
Providing job advancement opportunity
Building up relationship with employees of the organization.
Achieving the organizational goals
To work employees according to their potentiality
Maintaining work atmosphere
Development of employees skill
Proper utilization of resource
To satisfy the employees

Disadvantages of not practicing of HRM

For the purpose of completing the survey on Agrani Bank Limited,we found the followings
disadvantages of not using HRM:

Lack of proper relationship with employees

Communication gaps between company management and employees
Employees express their frustration about company
Proper use of resource is not possible
Disorder of work can be found etc.

39
Findings of the study

Recommendation

Conclusion

Appendix

40
Chapter-03

Section 3.1
Findings of the study

Section 3.2
Recommendation

Section 3.3
Conclusion

41
Section 3.4
Appendix

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42
Problems of Foreign Trade in Bangladesh

- by mnhr

• Arise

• Avail

• Consumer

• Foreign Trade

• Foreign Trading

• Geographical Location

• Health &

• Industrial

1. Legal Constraints: The first and the foremost problems in foreign exchange operations arise
due to legal constraints. Since foreign trade indicates exchange of goods and services between
two countries and each country has its own laws, rules and regulations, which are different from
other countries, so problems arise in foreign exchange operations.

43
For example, an exporter of Bangladesh receives an L/C from the importer of England in which
the goods will be shipped in American ship and delivered in China. In this case according to
which country’s law the dispute, if arise, will be settled, is a problem.

2. Geographical Location: From the geographical viewpoint, Bangladesh is not located in such a
place to trade vigorously. We have encompassed by India from three sides. And India enjoys a
strong industrial base compared to us. Due to economy of scale India can produce the same
quality products at a cheaper price.

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So this is a problem in foreign exchange operation

3. Limited Skilled Manpower: Performing the foreign exchange activities is a very tough job
because it involves proper communication with the client, various banks of the country as well as
abroad. A single error may cost thousands of dollars. In Bangladesh there is limited skilled
manpower, who can understand and handle the foreign exchange dealings well.

4. Limited Export Base: Bangladesh has a very limited export base. It does not have the
sufficient supply of raw materials needed to use in the production process. If Bangladesh has the
local raw materials, it would be able to use them in the production process. But unfortunately the
country has to import the raw materials required in various production processes. As a result,
production cost increases and consumers has to spend more to avail that particular product.

5. Lack of Stable Policy: Policy and structure are an integral part of any kind of operation. It will
suggest us how to perform the operation. But if the policy continues to change frequently it is not
easy to plan and perform also. With the changes of Government new policies are formed, which

44
is very difficult to cope with. It is hard for the business organizations and businessmen to settle
themselves. They are always deviated from the old track, and have to run after the new track.
This is another problem of our country.

6. Political Instability: Another major problem to conduct foreign exchange business is the
political instability of a country, as the political stability is essential for smooth foreign exchange
operations.

7. Problems in UCPDC Guidelines: According to the Article – 4 of the Uniform Customs

and Practices for Documentary Credit (UCPDC), all parties concerned with L/C must deal with
documents not with goods. This may cause problem, as the bank must have to make
payment after the presentations of necessary documents, whether or not the goods are delivered
to the importer.

8. Absence of Policy, Rules and Regulations of Foreign Exchange Operations as per Islamic
Shariah: There is no international Policy, Rules and Regulations of Islamic Banking Regarding
Foreign Exchange Operations, so the Islami Banks has to face problems in foreign exchange
operations.

9. Absence of Islami Money Market: There is no Islami money market in Bangladesh as well as
in the world to deal with Foreign Exchange Operations.

10. Other Problem: Whenever an importer comes to the bank to issue a L/C in his favor, he has
to deposit a certain amount, known as “L/C margin”. After receiving of the export documents
from the exporter the importer pays the rest amount. But up to this time this L/C margin amount
is kept by the bank without giving any return to the importer, so it is a loss for the client. He
could invest this money anywhere else and could earn some return. The importer adds this loss
this loss with his production cost so the product price goes up that has to borne by the ultimate
customers.
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omists and researchers on Thursday said that the proposed free trade agreements between
European Union and India and between EU and Vietnam would not pose any threat to the
Bangladesh’s exports but the country’s internal factors were the challenges for its
competitiveness in the export markets.
They made the opinion in a seminar on ‘Implication of EU-India FTA and EU-Vietnam FTA on
Bangladesh’s Export’, jointly organised by Bangladesh Garment Manufacturers and Exporters
Association and Bangladesh Foreign Trade Institute at the BGMEA office in the capital on
Thursday.
Policy Research Institute of Bangladesh executive director Ahsan H Mansur said, ‘It is not a new
phenomenon that Vietnam is growing fast but I am not worried about it.’
There are some countries in the world that get additional benefits due to political reason and
Vietnam is one of them, he said.
Due to a strong political relationship Vietnam is getting both the duty and investment facilities
and increasing their exports to the US market, Mansur said.
‘Increasing of investment and enhancing of economic diplomacy are more important things for
Bangladesh than signing an FTA,’ he said.
Mansur said that Myanmar and Cambodia might be the future competitors for the Bangladesh’s
readymade garment sector.
Zillul Hye Razi, trade adviser of the EU delegation to Bangladesh, said that Vietnam and India
were not threat to Bangladesh as their export items were not same as Bangladesh’s products.
‘I do not think external factors are threat to the Bangladesh’s exports but the country should
address internal factors like political stability and infrastructure,’ he said.
Former Tariff Commission chairman Mujibur Rahman said Vietnam was not competitor of
Bangladesh as it made mostly high end products but India was a competitor.
‘We will have to increase capacity. Otherwise any agreement would not bring benefit,’ said
Nazneen Ahmed, senior research fellow of Bangladesh Institute of Development Studies.
She suggested that the government should address the problems like lack of power, electricity
and infrastructure.
‘We need to solve the problems within the country and we have to have proper political

46
environment,’ Nazneen said.
Commerce minister Tofail Ahmed said that as a least developed country Bangladesh was getting
duty-free and quota-free market access in many countries and the government would try to sign
FTAs with those countries which were yet to give the facility.
Vietnam is growing fast due to political stability and the country relaxed their rules and
regulations so that anyone can invest in the country, he said.
Tofail admitted that Bangladesh has scarcity of land, electricity and gas but Vietnam does not.
The commerce minister said if India and Vietnam sign FTAs with the EU, Bangladesh would not
suffer.
Bangladesh is likely to get duty-free access in Malaysia, Brazil, Chile and Argentina, he said.
Acting BFTI chief executive officer Mostafa Abid Khan presented the keynote paper in the
seminar.
In the paper he said that Bangladesh was likely to face competitive pressure from both India and
Vietnam in the knit apparel and footwear sectors if the countries receive duty-free treatment in
the EU under the proposed FTAs.
Sate minister for foreign affairs Shariar Alam, BGMEA president Md Atiqul Islam and garment
worker leader Nazma Akter also spoke at the programme.

47