2.4.

0 Microfinance and Bangladesh

Over the last four decades Bangladesh has experienced tremendous growth in

microfinance sector. Credit to poor households who are considered ‘unbankable’ by

formal financial systems became bankable when in 2004 Bangladesh Rural

Advancement Committee (BRAC) started to provide microcredit. Later on a team of

researcher at Chittagong University, led by Professor Yunus began an action-research

program in 1976 that provided loans to some poor households. It was a successful pilot

project that created ‘peer group’ of four or five individuals among those borrowers

who were jointly responsible for each others. After Bangladesh’s independence war in

1971 as new government was unable to cope with the scale of destitution a new

generation of young activist provided their helping hand to poor village households by

relief and rehabilitation projects through Non-Government Organisation (NGO)

movement. By the mid-1970s two of those NGOs, BRAC and Proshika to fulfill their

development objectives started to focus on poor households through ‘target-group’

approach. So in 1970s was the experimental period of microfinance in Bangladesh.

In 1980s with the growing demand of microfinance within poor households

microfinance started to become popular as experimental projects of 1970s encouraged

those NGOs to include this service within their other services. With the support of

Bangladesh Bank and commercial banks, Professor Yunus established Grameen Bank

in 1983 to provide microfinance to more poor households. In this decade BRAC

experienced how to run nationwide program through its oral rehydration program

where thirteen million women were trained to make rehydration solution to combat
diarrhoeal disease. Later on this experience helped BRAC to run its microfinance

program.

According to Ahmed (2003) early 1990s was the decade of rapid expansion of

Grameen-style microcredit approach. This growth was fueled mostly by ‘franchising

approach’. In May 1990 Palli Karma Sahayak Foundation (PKSF) was set up by

government of Bangladesh as a not-for-profit organization. PKSF’s aim was to

generate employment and alleviate poverty by being wholesale financing institution for

NGOs who provide microcredit to poor, landless and assetless households. From mid

1990s onward academic research, international experience and feedback from

consumers influenced microfinance institutions to provide diversified financial services

for different class of households. Until late 1990s MFIs used to collect compulsory fixed

weekly savings for lump sum pension upon departure from organization and as a result

access to this deposit was limited.

In this decade increased number of MFIs in Bangladesh providing added services by

introducing open access current account scheme and life insurance products. To make

microcredit more sustainable now MFIs are providing non-credit services such as input

supply, training and marketing support for micro-entrepreneurs, community health

programs as well as educations for all household members. According to Gauri and

Galef(2004) in their survey of 310 NGOs conducted in 2003 shows that 92% of them

provide micro-credit as one of other services and around half of them provide other

common services such as health, sanitation and education for their members. If we

categorize those services as Credit service, finance service, business related service and
social programs and according to those services if we put Grameen Bank, BRAC and

Proshika in a matrix we find:

Credit with Finance with

Social BRAC Social
Programmes Programmes
Finance with
Proshika Business
Credit with related service
Business
Related service

Grameen
Bank
BRAC Finance only
Bank
Credit only

Figure 1: Matrix of microfinance (and related) institutions in Bangladesh, 2010.

Based on MFI practice in Bangladesh this research primarily focused on Bangladesh

Rural Advancement Committee (BRAC), a famous NGO of Bangladesh which has a

reputation for best practice in microfinance to assess its services to poor households.

This assessment targeted BRACs services to find out at what extent those services

helping poor micro-entrepreneurs to enhance their dreams as well as its long term

potentials in terms of growth and poverty alleviation. Here the second objective steps

in. It will be beneficial for any MFIs to assess the perceptions of their stakeholders

specially the loan recipients as according to Mendelow’s stakeholder analysis matrix

although individual loan recipients have low level of power to influence MFI activities,

if they comes together or get organized by pressure groups or government who already

reserve high power start to look after their interest then can achieve high level of

influence on MFI activities. As discussion above clearly indicates Bangladesh has

effective microfinance activities, the perceptions of loan recipients will be collected

through case study and field survey. So the question related to the second objective

“What do the consumers of microfinance think about its practice in Bangladesh” will

get the answer through the analysis of microfinance model used by BRAC as well as its

effect on its loan recipients.

APPENDICES

Appendix 1: Questionnaires
Appendix 1a: Managers Questionnaire

Dear Sir/Madam,

MANAGERS QUESTIONNAIRE

I am conducting a research (dissertation) on The Importance of Human

Resource Development in an Organisation, in partial fulfilment of the
Liverpool John Moores University Masters of Business Administration (MBA)
programme that I am currently pursuing.

Whilst a number of Ghanaian companies have taken a lukewarm approach

towards Training and Development, Standard Chartered Bank (Standchart),
Ghana has successfully employed such initiatives to great effect. I opted for
your company for my research to afford me the opportunity to evaluate how
such programmes have contributed to the realisation of your personal and
Standchart’s objectives.
Below is a questionnaire to request your candid opinion on the training
courses you have attended or received from Standchart, and how they have
impacted on your career development and job performances. Additional
space has been offered at the end of the questionnaire to enable you to
provide any further information or experience you may wish to share, but are
not covered by the questions. I fully appreciate that you may be working on
tight schedule; however, your participation and response in this questionnaire
would be immensely appreciated.

I wish to thank you profoundly for participating in this research. I undertake

that comments and views expressed will be treated in the strictest
confidence.

Should you require further details or clarification, please contact the

researcher at the address below.

59 Marlborough Close, London, SE17 3AW

Tel: +44 207 358 3096

Mob: +44 785 228 6038

E: sayawyeboa@yahoo.com

E: syyaw1@googlemail.com

Yours sincerely,

Samuel Yeboah

Please kindly provide the following details:

Name: ………………………………………………………………………………

Title: …………………………………

Gender: Male Female

I have worked at Standchart for 0 – 5 yrs over 5 yrs

I principally work in:

a) Accounts/finance

b) Customer services

c) Marketing/ Sales

d) Business development

e) Human resource

f) Engineering/IT/maintenance

g) Teller

h) Facilities management

Date: ……………………………….

Signature: ………………………….

The statements in the following four sections (A – D) are related to human

resource training and development you have received or attended while

working at Standchart. Please rate the following statements by using the

scale from ‘strongly agree’ to ‘strongly disagree’ by highlighting, ticking or

circling only one option for each statement.

Example:

Q. Big bonuses are good motivational tool.

□ strongly agree       □ agree       □ not sure       □ disagree        □ strongly
disagree

SECTION A

i. Training and developing managers enable them to better understand

their subordinates’ views.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

ii. Training and developing managers’ skills enable them to become

more flexible in their approach to management.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iii. Training and development may be used to motivate managers.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iv. Management training has enhanced my own performance.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

v. Training and development has enhanced my managerial capabilities.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree
 SECTION B

i. Human resource development is an essential strategy at Standchart

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

ii. Training has provided me the skill to assess and identify my

subordinate’s contributions towards strategic objectives realization.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iii. I am trained to identify the training needs of my subordinates toward

Standchart’s strategic objectives.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iv. Training has enhanced my ability to help subordinates understand

how their actions impact on Standchart’s strategic objectives.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

v. Training has made it possible for me to motivate subordinates to take

more responsibilities to aid Standchart’s quest for competitive
advantage.
 □ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

vi. Standchart uses training and development to facilitate sustainable

growth and competitive advantage.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

vii. Standchart uses training and development as a key facilitator in

sustaining competitive advantage.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

viii. Employees are Standchart’s most important strategic asset.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

ix. Training and development is an important strategic investment.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

x. Training and development is an additional expenditure.

□ strongly agree       □ agree       □ not sure       □ disagree        □

 strongly disagree

SECTION C.

i. There are positive relationships between training, development and

performance.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagre

ii. Human resource development motivates and brings the best out of
Standchart’s employees.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iii. Training enables employees to better understand Standchart’s

culture and vision.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iv. Human resource development aid employees’ personal development

and career progression at Standchart.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

v. Standchart’s employees should be rewarded to commensurate the

knowledge and skills they have acquired through training.
 □ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagre

SECTION D

i. Human resource planning plays an important role in employee

development

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

ii. It is important to consider employees preferred method of learning

when planning training courses.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iii. Standchart consider individual learning styles when administering

training programmes.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

iv. Different people respond well to different training methods or

techniques.
 □ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

v. Most employees feel more comfortable with external trainers or

tutors.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

vi. Most employees feel more comfortable at external training resource

centres.

□ strongly agree       □ agree       □ not sure       □ disagree        □

strongly disagree

Please give further comments on training and development related

experiences you may wish to share below:
 Please continue on separate sheets if necessary

Appendix 1b: Staff Questionnaire

Dear Sir/Madam,

STAFF QUESTIONNAIRE

I am conducting a research (dissertation) on The Importance of Human Resource

Development in an Organisation, in partial fulfilment of the Liverpool John Moores
University Masters of Business Administration (MBA) programme that I am currently
pursuing.

Whilst a number of Ghanaian companies have taken a lukewarm approach towards

Training and Development, Standard Chartered Bank (Standchart), Ghana has
successfully employed such initiatives to great effect. I opted for your company for my
research to afford me the opportunity to evaluate how such programmes have
contributed to the realisation of your personal and Standchart’s objectives.

Below is a questionnaire to request your candid opinion on the training courses you
have attended or received from Standchart, and how they have impacted on your career
development and job performances. Additional space has been offered at the end of the
questionnaire to enable you to provide any further information or experience you may
wish to share, but are not covered by the questions. I fully appreciate that you may be
working on tight schedule; however, your participation and response in this
questionnaire would be immensely appreciated.

I wish to thank you profoundly for participating in this research. I undertake that
comments and views expressed will be treated in the strictest confidence.

Should you require further details or clarification, please contact the researcher at the
address below.

59 Marlborough Close, London, SE17 3AW

Tel: +44 207 358 3096

Mob: +44 785 228 6038

E: sayawyeboa@yahoo.com

E: syyaw1@googlemail.com

Yours sincerely,

Samuel Yeboah

Please kindly provide the following details:

Name:

………………………………………………………………………………………………….

Title: …………………………………
Appendix 1c: Comments by Questionnaire
Respondents

1. Training also serves as a:

- Refresher for all staff and current practices on the market.

- Time to take a look at ongoing practices in a classroom.

- Engaging staff on various subjects at the workplace.

- Assessing staff at the workplace

2. Employees should be rewarded based on performance achieved through the correct

application of knowledge and skills and not merely the acquisition of knowledge and skills.

3. Standard chartered appreciates the need for staff training and thus spares nothing to ensure

that its employees receive all the relevant trainings and kits to better position them in their

various roles so as to maximise their performance.

5. Personally, my preference as far as resources persons go is neither here nor. For as long as

the facilitator is able to package the course in a manner that will best serve the objectives of the

training is the bottom line.

6. The talent and development team is also doing a superb job at ensuring the banks vision is

attained in terms of knowledge acquisition by enabling and empowering each member of staff

with the requisite tools and conducive atmosphere at the learning centre to achieve the banks

strategic mission of being the leading international bank in Ghana.

7. An external resource centre presents a more relaxing atmosphere but external trainers have

barely been impressive.

8. The success or otherwise of a training session depends largely on the trainer and his level of

preparation for the training programme. The session would have to be made as interactive as

possible by allowing participant express their opinion issues discussed.

9. Needless to say that the trainer must be as practical as possible. To succeed being practical
the trainer have an appreciable background of the participants attending the training session.