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Human Resource Management Practices of Banking Sector in Bangladesh
Human Resource Management Practices of Banking Sector in Bangladesh
SUBMITTED TO
Farhana Diba
Assistant Professor
Department of Business Administration
Stamford University Bangladesh
SUBMITTED BY
Shahnaz Parvin
ID Number: 06818050
Batch: 068
Major: Human Resource Management
Department of Business administration
Stamford University Bangladesh
5 June 2023
To,
Farhana Diba,
Assistant Professor,
Department of Business Administration,
Stamford University Bangladesh.
Dear Sir,
With due respect, I would like to inform you that it is a great pleasure and privilege to present
the Thesis Paper on “Human Resource Management Practices of Banking Sector in Bangladesh”
which was assigned to me as a partial requirement for the completion of MBA Program.
Throughout the study I have tried the best of my capacity to accommodate as much as in-
formation and relevant issues as possible and tried to followed the instructions that you have
suggested. I put my best effort to make this report such as much detailed as possible. I sincerely
believe that this thesis paper would satisfy and meet the requirements and will serve the purpose
of my dissertation.
I am grateful to you for your kind guidance and cooperation at every step of my endeavor
during preparing this report. It would be a great help for if you kindly take some time to go
through the report and evaluate this. It will be a big reward for my effort if it adds value to the
research literature.
Yours Sincerely,
..........................................
Shahnaz Parvin
ID Number: MBA 06818050
Major in Human Resource Management
Department of Business Administration
Stamford University Bangladesh
1
CERTIFICATE OF SUPERVISOR
This is to certify that Shahnaz Parvin, ID Number: MBA 06818050, Major in Human
Resource Management, Master of Business Administration (MBA), Department of Business
Administration, Stamford University Bangladesh has completed her Thesis Paper under my
supervision as a partial requirement for the degree of Master of Business Administration
(MBA). This Thesis Paper entitled on “Human Resource Management Practices of Banking
Sector in Bangladesh”.
........................................................
Farhana Diba
Assistant Professor
Department of Business Administration
Stamford University Bangladesh
2
DECLARATION OF THE STUDENT
I, Shahnaz Parvin, ID Number: MBA 06818050, Major in Human Resource Management,
Master of Business Administration (MBA), Department of Business Administration, Stamford
University Bangladesh, hereby declare that the Thesis Paper on “Human Resource Management
Practices of Banking Sector in Bangladesh” presented to the Department of Business
Administration, is the outcome of the dissertation Thesis Paper performed by me under the
supervision of Farhana Diba, Assistant Professor, Department of Business Administration,
Stamford University Bangladesh. I also declare that no part of this Thesis Paper submitted
elsewhere for theaward of any degree, diploma or recognition.
..........................................
Shahnaz Parvin
ID Number: MBA 06818050
Major in Human Resource Management
Department of Business Administration
Stamford University Bangladesh
3
ACKNOWLEDGMENT
First of all, I am very much thankful to almighty Allah for giving me strength, courage and
ability to accomplish the Thesis Paper in a scheduled time in spite of various complications. I
also thank Stamford University Bangladesh for its help & support in completing my Internship
Report and also a nice placement for my Thesis Paper. I wouldn‟t have been able to do well
without the constant support of my supervisor and my peers in the organization.
For preparing my Thesis Paper, I need some respected persons help and they deserve greatest
gratitude. The completion of this thesis gives me much knowledge. I would like to show my
gratitude to the Honorable Faculty of Farhana Diba, Assistant Professor, Department of Busi-
ness Administration, Stamford University Bangladesh, who has given me the full support and
suggestions for preparing the thesis paper successfully, which has become an excellent way of
understanding the topic of my Internship Report.
At first, I was so confused that whether I would be able to make a fruitful Thesis Paper but
with her assistance, I found a way to do everything immaculately and in time. She kept me
on track to complete this Thesis Paper and her suggestions and feedback were very dynamic in
making this thesis paper as impeccable as possible. I would like to thank all those persons who
have helped me to prepare this thesis paper directly or indirectly.
Finally, I would like to express my profound gratitude to my family members who have
given me the support to pursue the MBA Program.
4
EXECUTIVE SUMMARY
The term HRM Practices is a sub-discipline of Human Resources Management. Fast global
and technological developments have made today‟s business environment highly uncertain and
even chaotic. Organizations are seeking newer ways to promote their adaptability to the
complexities of the changed scenario so as to survive and prosper. Globally, organizations are
striving to realize competitive success through strategic management of human resources.
Thus, people management has never been more important than it is today. Therefore new
themes have emerged in the process, replacing some of the old ones. The new thinking in this
regard is referred to as Human Resource Management (HRM), which carries a more proactive
and strategic connotation. HRM is intimately intertwined with business strategy. Fast global
and technological developments have made today‟s business environment highly uncertain
and even chaotic. Organizations are seeking newer ways to promote their adaptability to the
complexities of the changed scenario so as to survive and prosper. Globally, organizations are
striving to realize competitive success through strategic management of human resources.
Thus, people management has never been more important than it is today. Therefore new
themes have emerged in the process, replacing some of the old ones. The new thinking in this
regard is referred to as Human Resource Management (HRM), which carries a more proactive
and strategic connotation. HRM is intimately intertwined with business strategy. In many
situations, it even critically influences business strategy. The development of employee
commitment through employee involvement and empowerment is one of the key objectives of
any HRM discourse. The complex business objectives in today‟s business environment are
difficult to realize without developing highly committed and motivated employees who would
strive to contribute to organizational goals. That is why, human resource issues are no more the
exclusive preserve of personnel specialists; rather line and general managers are being
increasingly involved in handling key HR issues and in evolving, shaping and managing human
resource strategies and policies. These developments have given a far greater recognition to the
HR function in organizational decision-making processes. Mutual Trust Bank Limited
(MTBL) is sponsored by a group of dynamic Bangladeshi Entrepreneurs, Industrialists,
Educations and Professionals. Mutual Trust Bank Ltd is one of the renowned and scheduled
private commercial bank of Bangladesh. MTBL aspire to be the most admired financial
institution in the country, recognized as a dynamic, innovative and client focused company that
offers an array of products and services in the search for excellence and to create an
impressive economic value. The City Bank has been motivated to provide “best- in-the-class”
services to its diverse assortment of customers spread across the country under an on-line
banking. To provide HR Practices of the City Bank Limited objectives are find-out the
selection, training, promotion and development process in HRM division of the City Bank
Limited. Finally find out some problems and recommend some suitable steps to overcome the
problems. The overall explanation is City Bank Limited is a bank that confirms the best service
to the customers as well as to the employees by Human Resource Division.
KEY WORDS: Bank, Organization, Banking Industry, HRM Practices, Bangladesh Bank.
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Table of Contents
Page Number
1 INTRODUCTION 2
1.1 Background of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Research Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Significance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4 Scope of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5 Methodology of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5.1 Primary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5.2 Internal Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5.3 Secondary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5.4 Study Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5.5 Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.6 Limitations of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ii
3 OVERALL FINDINGS 33
3.1 FINDINGS ................................................................................................................ 33
3.2 FINDINGS of Mutual Trust Bank Limited ............................................................... 34
3.3 FINDINGS of City Bank Limited ............................................................................. 35
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Chapter I
INTRODUCTION
1
Chapter 1
INTRODUCTION
ii. To research and analyze “Human Resource Management Practices of Banking Sector in
Bangladesh”.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
i. Human Resource is an emerging concept in Bangladesh and organizations such as a Bank put
much more emphasis on this department so this study will help the organization as well. In this
regard, this research will help to increase organization‟s performance in a way the employee of
the organization will think.
ii. HR department and its working procedures as well as its key roles in a company.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
* The insufficiency of information is main constraint of the study. Moreover employees are not
interested to provide all information due to security and other corporate obligation.
* The employees and clients are busy to provide me time for interview.
* It is too much difficult to comment & suggest based on only the annual report and information
supplied by the organization.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Chapter II
HUMAN RESOURCE
MANAGEMENT PRACTICES
OF BANKING SECTOR IN
BANGLADESH
6
Chapter 2
Bangladesh is one of the densely populated countries in all over the world. The human be-
ings may play as like the asset of the country. So to make the people efficient in their post we
need to train them & posted them in the right place based on their skills. One of the important
parts of the organization is the Management System. Management system process is included
with planning, organizing, staffing, leading, controlling. In the term of management process
Human Resource Management is one of the fundamental pare. Human Resource Management
involved with the process of acquiring, training, appraising, compensating employees, recruit-
ment, screening & rewarding. Now a day we all are familiar with the term of Human Resource
Division in every sector of every single organization in Bangladesh. Without establishing this
important sector anyone organization may run smoothly. This term is very much essential for
every single employee those are involved in different organization. So the every single task of
HR division is very much essential for all the employees those are involved with The Mutual
Trust Bank ltd in Bangladesh.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
A) Schedule Bank
B) Non-schedule Bank
A) Scheduled Bank
The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003)
are termed as Scheduled Bank. State-owned commercial banks, private commercial banks, Is-
lamic commercial banks, foreign commercial banks and some specialized banks are Scheduled
Bank.
B) Non-Scheduled Bank
The banks which are established for special and definite objective and operate under the
acts that are enacted for meeting up those objectives are terned as Non-Scheduled Bank. These
banks cannot perform all functions as like as scheduled banks. Grameen Bank, Probashi Kallyan
Bank, Karmasangsthan Bank, Progoti Co-operative Land Development Bank Limited (Progoti
Bank) and Answer VDP Unnayan Bank are Non-Scheduled Bank.
A) Central Bank
A) Central Bank
1. Bangladesh Bank
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Human Resource Management Practices of Banking Sector in Bangladesh
29. AB Bank
1. City Bank
2. HSBC
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Human Resource Management Practices of Banking Sector in Bangladesh
8. Woori Bank
9. Bank Alfalah
4. Grameen Bank
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Bank is a financial institution which deals with other people‟s money i.e. money given by de-
positors.
A bank may be a person, firm or a company. A banking company means a company which is in
the business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customer. It
also acts as a custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.
A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts; it also brings bank money in circulation. This money is in the form of cheques,
drafts, etc.
A Bank provides various banking facilities to its customers. They include general utility ser-
vices and agency services.
9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money
from those who have surplus money and give the same to those who are in need of money.
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Thesis Paper on
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A bank‟s main activity should be to do business of banking which should not be subsidiary to
any other business.
A bank should always add the word “bank” to its mane to enable people to know that it is a bank
and that it is dealing in money.
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Human resource is a term used to describe the individuals who comprise the workforce of
an organization, although it is also applied in labor economics to, for example, business sectors
or even whole nations. Human resources is also the name of the function within an organization
charged with the overall responsibility for implementing strategies and policies relating to the
management of individuals (i.e. the human resources). This function title is often abbreviated
to the initials „HR‟.
The overall purpose of human resources (HR) is to ensure that the organization is able to
achieve success through people. HR professionals manage the human capital of an organization
and focus on implementing policies and processes. They can specialize in finding, recruiting,
selecting, training, and developing employees, as well as maintaining employee relations or
benefits. Training and development professionals ensure that employees are trained and have
continuous development. This is done through training programs, performance evaluations,
and reward programs. Employee relations deals with the concerns of employees when policies
are broken, such as cases involving harassment or discrimination. Managing employee bene-
fits includes developing compensation structures, parental leave programs, discounts, and other
benefits for employees. On the other side of the field are HR generalists or business partners.
These HR professionals could work in all areas or be labour relations representatives working
with unionized employees.
HR is a product of the human relations movement of the early 20th Century, when re-
searchers began documenting ways of creating business value through the strategic management
of the workforce.[6] It was initially dominated by transactional work, such as payroll and ben-
efits administration, but due to globalization, company consolidation, technological advances,
and further research, HR as of 2015 focuses on strategic initiatives like mergers and acquisitions,
talent management, succession planning, industrial and labor relations, and diversity and inclu-
sion. In the current global work environment, most companies focus on lowering employee
turnover and on retaining the talent and knowledge held by their workforce.[citation needed]
New hiring not only entails a high cost but also increases the risk of a new employee not being
able to adequately replace the position of the previous employee. HR departments strive to offer
benefits that will appeal to workers, thus reducing the risk of losing employee commitment and
psychological ownership.
The role of HRM practices are to manage the people within a workplace to achieve the or-
ganization‟s mission and reinforce the culture. When done effectively, HR managers can help
recruit new professionals who have skills necessary to further the company‟s goals as well as
aid with the training and development of current employees to meet objectives.
A company is only as good as its employees, making HRM a crucial part of maintaining or
improving the health of the business. Additionally, HR managers can monitor the state of the
job market to help the organization stay competitive. This could include making sure compen-
sation and benefits are fair, events are planned to keep employees from burning out and job roles
are adapted based on the market.
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HR Key Functions
Human Resources may set strategies and develop policies, standards, systems, and processes
that implement these strategies in a whole range of areas. The following are typical of a wide
range of organizations:
* Supervise the implementation of such activities by managers, other business functions or via
third-party external partner organizations.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Compensation Management
The increasing competitiveness of the labour market and turnover of employees had resulted
in nightmare in compensation planning. Apart from this, the growing demands of the employees
and competitive salaries offered by multinational companies had almost resulted in a compensa-
tion war in certain industries. Therefore, the human resources managers and tax experts have to
evolve proper compensation planning for High end and qualified employees. The components
of compensation have to be devised in such a way that, it focuses on the growing demands of
employees while retaining the competitiveness and profitability of the company.
While it may be a touchy subject, pay is a critical factor in the work lives of employees. Jobs
are accepted or rejected based in part on starting salary and the opportunity for future increases
in pay. Employees compare their pay to that of others in the same line of work. They constantly
compare their pay level to their level of contribution, trying to determine whether the ratio of
give and receive is a fair one. While it may not be a frequent topic of open discussion, employ-
ees think about pay often.
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Thesis Paper on
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These issues motivate a well thought out human resource management strategy, with the
precision and detail of say a marketing strategy.
Failure in not having a carefully crafted human resources management strategy, can and
probably will lead to failures in the business process itself.
This set of resources is offered to promote thought, stimulate discussion, diagnose the or-
ganizational environment and develop a sound human resource management strategy for your
organization. We begin by looking at the seven distinguishable function human resource man-
agement provide to secure the achievement of the objective defined above.
Finally, some questions are posed in the form of a HRM systems diagnostic checklist for you
to consider, which may prove helpful for you to think about when planning your development
programs for the human resources in your organization, if they are truly “your most valuable
asset.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
HR Practices in Bangladesh Banking Industry is the potential industry where the growth of
a country depends a lot. In Bangladesh banking industry is also very influential. This industry is
very big in Bangladesh and holds a lot of skilled employees. So Human Resource Management
(HRM) is very much applicable as well as practiced in the banks of Bangladesh.
The crucial factors behind successful banking will be continuous and sustained build up of
skills, knowledge, education and attitudes among people working in the banks, particularly the
front line staff, working in the branches.
Building efficiency in banking is, therefore largely dependent on the best selection process
adopted by the HR department. There is imperative need to build up skills within an organiza-
tion for the successful managing of available HR.
Banks have vast human resource specialized in multiple disciplines like technology, law,
operations, foreign exchange, administration etc. the basic function of HR is to manage them
efficiently for continuous success.
Bangladesh Bank, the central bank as well as chief authority to regulate country‟s monetary
and financial system, was established in Dhaka as a body corporate vied the Bangladesh Bank
Order, 1972 (P.O. No. 127 of 1972) with effect from I6th December, 1971. Bangladesh Bank
started functioning with all capital and liabilities of the then Dhaka branch of State Bank of Pak-
istan. At present it has got 9 branches and those are located at Motijheel, Khulna, Sadarghat,
Bogra, Chittagong, Sylhet, Barisal, Rangpur and Rajshahi in Bangladesh and total number of
staffs stood at 7240 as on end December 2009.
BB as the central bank of Bangladesh executes all the functions that a central bank tradi-
tionally performs as elsewhere in the world. The core functions of BB are briefly discussed as
follows:
2. BB formulates and implements intervention policies in the domestic money market and for-
eign exchange market. BB intervenes the money market with some policy instruments such as
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
v. Moral suasion
3. BB monitors and supervises scheduled banks and non-bank financial instructions (NBFIs)
that include off-site supervision and on-site supervision in order to enhance the safety, sound-
ness, and stability of the banking system to ensure banking discipline, protect depositors‟ inter-
est and retain confidence in the banking system.
5. BB, as the central bank of Bangladesh reserves sole responsibility to issue bank note
6. BB performs as a clearing house for the scheduled banks to clear and settle inter-bank pay-
ment arising through drawing cheque, drafts, bills, etc to one another.
8. BB functions as a lender of the last resort for the government as well as for the country‟s
scheduled banks.
10. BB directs the growth expediting programs for the national interest.
Additionally, BB‟s functions include some other promotional activities such as development of
new instruments, guidelines for money and financial market participants, providing training to
the banks and NBFIs, monitoring and encouraging corporate social responsibilities (CSR) exe-
cuted by banks and NBFIs and so on. HRM process of Bangladesh Bank.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Human Resources Department (HRD) manages centrally the manpower of the bank at work
places through resourcing, placement, training, performance, discipline etc. It emphasizes on
strategic and value added Human Resources (HR) activities involving the designing, updating
and amending HR polices and procedures for continuous improvement.
To execute the above mentioned issues - HRUs functions are accomplished under the following
divisions:
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
The Company was incorporated as a Public Limited Company on September 29, 1999, under
the Companies Act 1994, with an Authorized Share Capital of BDT 1,000,000,000 divided into
10,000,000 ordinary shares of BDT 100 each. At present, the Authorized Share Capital of the
company is BDT 10,000,000,000 divided into 1,000,000,000 ordinary shares of BDT 10 each.
The Company was also issued Certificate for Commencement of Business on the same day
and was granted license on October 05, 1999 by Bangladesh Bank under the Banking Compa-
nies Act 1991 and started its banking operation on October 24, 1999.
2.2.2 Vision
Mutual Trust Bank‟s vision is based on a philosophy known as MTB3V. We envision MTB
to be:
2.2.3 Mission
We aspire to be the most admired financial institution in the country, recognized as a dy-
namic, innovative and client focused company that offers an array of products and services in
the search for excellence and to create an impressive economic value.
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
Moreover, top executive of the Bank are frequently send abroad for enabling them to know
the functions and mechanisms of financial, money and security market of the developed coun-
tries and also to exploring business opportunities. Quit a large numbers of executives and offi-
cers of the Bank have so far been trained at Bangladesh Institute of Bank Management (BIBM),
Bangladesh Bank Training Academy (BBTA) etc. covering divers areas of the financial sys-
tem including commercial banking as carefully selected are largely concentrated around core
banking issues like credit management, international Trade, treasury management, audit and
inspection, loan review & monitoring and project management.
For effective recruitment and selection HR personnel of Mutual Trust Bank Limited does
job Requirement analysis at first. In which post they need how many employee(s), what should
be qualification of that employee(s), in which time they need the employee(s), for rural branch
or out side of Dhaka branches from where they have to recruit employee(s) etc. Without this
requirement analysis an organization can not requite effectively and efficiently.
Recruitment
Recruitment refers to process of finding right people for the right job or function, usually
undertake by Human Resource Department. Advertising is commonly part of the recruiting pro-
cess and Mutual Trust Bank does it through newspapers. Mainly two newspapers they advertise
for Prothom Alo and Daily Star. Different job required different skills. So, suitability for a job
is typically assessed by looking for skills, e.g. communication skills, computer skills. Evidence
for skills required for a job may be provided in the form of qualifications (educational or pro-
fessional), experience in a job requiring the relevant skills or the testimony of references.
Recruitment Process
Management Trainee recruitment process is different than other employee. In case of Man-
agement Trainee Mutual Trust Bank takes written examination. Other employee‟s recruitment
processes are as follows. After advertising the newspaper the Banking Officers and Trainee
Officers of Human Resource Department collect the CVs from reception desk. CVs are posted
by hand or by post. HR employee preliminary screen the CV by matching the post they want
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Thesis Paper on
Human Resource Management Practices of Banking Sector in Bangladesh
for. With the instruction of First Assistant Vice President (FAVP) of HRD Banking Officers
and Trainee Officers start to entry the CVs in the software. Software is also screening the by
matching the criteria, because software is designed as the criteria set up. If the criteria don‟t
match the software will not allow to entry the CV. After entering the CV in the software they
printout the CV statement in quizzes format, six CVs are in one page. With the statement the
Banking Officers go to the Head of the HRD. The Head of the HRD, Senior Executive Vice
President (SEVP), Executive Vice President (EVP) do an informal discussion and screen the
CV. Then these top level managers give a schedule for interview. First Assistant Vice President
(FAVP) of HRD set the venue for interview and call the top level management to lead the inter-
view. Banking Officers call the candidates to attend the interview. If the preliminary interview
is successful, the candidate will be invited to another interview. Then the selected candidates
have to face the final interview. It is not set that, there will be three interviews. It could be four
or more, depends on situation and post.
Joining
After selecting from the recruitment process bank offer the candidate to join the bank. If
candidate agree to join, the bank then gives him/her appointment letter. In appointment letter
the date of joining, which document should be attached, salary parameters are mentioned. With
the reference of appointment letter within the joining date the candidate have to come in the Hu-
man Resource Department (HRD) in the Corporate Office. The Banking officer of the Human
Resource Department (HRD) processes the joining. The candidate has to fill up a joining form,
in which there are personal information, references, nominees name and percentage of given
power of provident fund etc. S/he has to sign the Code of Conduct, and submit a joining letter
and a confirmation letter. Banking Officer verifies hisor her certificates, and collect nationality
and medical certificates. In terms of some employee like Management Trainee, they have to
sign bond to join the service. These all documents will enclose in his/her personal file. After
collecting all the documents Banking Officer creates the candidate‟s personal file and go to the
Head of the HRD and DMD to accept his/her joining. After accepting his/her joining, now
the candidate becomes an employee and Human Resource Department (HRD) gives him/her a
posting order.
An employee first joins in the Human Resource Department (HRD) in the Corporate Office.
After accept his/her joining s/he is posted to Branch Office. Before to get the posting order
employee doesn‟t know in which Branch s/he will be posted. All jobs are transferable in this
Mutual Trust Bank. The Competent Authority has the right to transfer employees of the Bank
from one department to anther department or from one branch to another branch of the Bank.
Human Resource Department keeps one copy of posting in employee‟s personal file and the
copy of posting order distribute among employee, the FVP and manager of employee‟s branch,
DMD and head of Corporate Affairs and Administration, Managing Director‟s Secretariat Mu-
tual Trust Bank Limited the FVP and manager of branch where employee will be posted and IT
Department.
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Thesis Paper on
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Confirmation of Service
When an employee joins in the service s/he will remain under provision of one year. If the
employee performs satisfactory in his/her job s/he will confirm of his/her service and that is
normally a promotion. For example, one employee joins as a Teller or Trainee Officer, if his/her
performance is satisfactory then s/he will confirm as Banking Officer (BO). If the employee‟s
performance is not satisfactory then the bank can extent the provision or can confirm as Teller
or Trainee Officer.
Leave Fare Assistant is the fifteen days leave with one month gross salary amount payment
and this payment will not count in monthly salary. After one year of confirmation of service
every employee will get this facility for every year. For mental And physical recreation of em-
ployee Mutual Trust Bank provides this facility and this mandatory for an employee. Leave
Fare Assistant is payable to the employees or their nominee(s) who are not in the payroll of the
bank on the date of payment due to retirement/death. With the provision that those who have
completed one full year of service in the Bank before the date of payment will receive entire
amount of LFA and others not completing one full year on the date of payment will receive LFA
proportionate to his/her period of service during the concerned year.
The scale of pay and other allowances of officers and employees of the bank are prescribed
by the Competent Authority from time to time. The initial pay of an employee appointed or
promoted to the higher post are ordinarily fixed at the initial stage of the scale of pay of the post
to which he promoted or appointed.
President and Managing Director to Banking Officer the salary breaks down are Basic pay,
House Rent Ceiling, Conveyance Allowance, Medical Allowance and Entertainment Allowance.
Here House Rent Ceiling is 54%, Conveyance Allowance is 26%, Medical Allowance is 10%
and Entertainment Allowance is 10% of basic salary. Tellers and Trainee Officers are got Con-
solidated Salary only, because they are on provision period.
Top level Officers from President and Managing Director to First Assistant Vice President
(FAVP) got extra charges like House Maintenance, Utilities and Car Maintenance. Deputy Man-
aging Director (DMD) and Senior Executive Vice President (SEVP) got Electricity, Gas, Tele-
phone and Domestic Aids also.
President and Managing Director to Executive Vice President (EVP) got direct car from the
bank. From Senior Vice President (SVP) to First Assistant Vice President (FAVP) got Car Loan
facility. And President and Managing Director to First Assistant Vice President (FAVP) got
House Loan also. These loan special for bank staff only, and the name of these loan are Staff
Car Loan, Staff House Building Loan. The bank takes only 7% interest on these loan. Group
Insurance facilities will get the entire confirmed employee. This insurance basically health in-
surance and will get facilities on only hospitalization. In this insurance officers and executives
will get the benefit of one spouse and two children.
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The following kinds of terminal benefits are allowable to a regular and full-time employee
of the bank. Gratuity Contributory Provident Fund Benevolent Fund.
Festival Bonus
Regular employee will be entitled to Festival Bonuses payable on the occasion of Eidul-
Azha and Eid-ul-Fitre. The bonus amount will be the half of his/her salary.
Performance Bonus
If the bank makes profit, the employees will be entitled to 3% of pre-tax profit as perfor-
mance bonus. Fifty percent of such bonus distributed on the basis of basic pay of an employee,
and balance fifty percent on the basis of performance of individual employees. Performance
appraisal for the purpose made on the criterion set by the management time to time.
When bank send any employee for training and call any employee for interview then the
bank will give him/her travel allowance and daily allowance. In this case the employee has to
claim his/her allowance with bus/ train/ plane tickets. Human Resource Department will verify
the claim and pay the employee.
Training is the processes of teaching the employee the skill for their better act upon on the
job. Training is very helpful for the employees for their better performance. There are many
methods of training, but in the banks of Bangladesh two methods are commonly used, lecture
and on-the-job training. Many institute and banks like BIBM, IBA, World Bank, Asian Devel-
opment Bank, Bangladesh Bank, Citi Bank etc arrange varies kind of training. Lots of banks of
Bangladesh have their own training institute and other banks employee can participate in that
training. Mutual Trust Bank employees also participate in the other banks training also. Mutual
Trust Bank doesn‟t have its own training institute but this bank arranged many type of training
in its corporate office and other banks employees can contribute these trainings. A number of
trainings are specific for specific department like Awareness of fake money, money launder-
ing, Q-cash debit card are compulsory for cash department employees. Other trainings are like
Customer Credit Scheme and Lease Finance Scheme, Credit Risk Grading, Credit risk Manage-
ment, Loan Classification and Provisioning, Loan Documentation, Lessons Learnt from Credit
Feature, Structured finance for Large Projects in Bangladesh, Exchange Rate Management etc.
Employee can not participate any in-house training from their own interest, Human Resource
Department will select the employee to participate the training. Human Resource Department
sends office notice to those employees to attend the training. After attending their training the
employee have to submit a report on that training to the Human Resource Department. Some
times Human Resource Department sends the employee to attend the training outside of the
Bangladesh.
Training and development managers and specialists conduct and supervise training and de-
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velopment programs for employees. Increasingly, management recognizes that training offers
a way of developing skills, enhancing productivity and quality of work, and building worker
loyalty to the firm, and most importantly, increasing individual and organizational performance
to achieve business results. Training is widely accepted as an employee benefit and a method
of improving employee morale, and enhancing employee skills has become a business impera-
tive. Increasingly, managers and leaders realize that the key to business growth and success is
through developing the skills and knowledge of its workforce.
Other factors involved in determining whether training is needed include the complexity
of the work environment, the rapid pace of organizational and technological change, and the
growing number of jobs in fields that constantly generate new knowledge, and thus, require new
skills. In addition, advances in learning theory have provided insights into how adults learn, and
how training can be organized most effectively for them.
Training managers provide worker training either in the classroom or onsite. This includes
setting up teaching materials prior to the class, involving the class, and issuing completion cer-
tificates at the end of the class. They have the responsibility for the entire learning process, and
its environment, to ensure that the course meets its objectives and is measured and evaluated to
understand how learning impacts business results.
Training specialists plan, organize, and direct a wide range of training activities. Trainers
respond to corporate and worker service requests. They consult with onsite supervisors regard-
ing available performance improvement services and conduct orientation sessions and arrange
on-the-job training for new employees. They help all employees maintain and improve their job
skills, and possibly prepare for jobs requiring greater skill. They help supervisors improve their
interpersonal skills in order to deal effectively with employees. They may set up individualized
training plans to strengthen an employee‟s existing skills or teach new ones. Training specialists
in some companies set up leadership or executive development programs among employees in
lower level positions.
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2.3.2 Vision
The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences.
2.3.3 Mission
Offer wide array of products and services that differentiate and excite all customer segments.
Be the ”Employer of choice” by offering an environment where people excel and leaders are
created.
Promote innovation and automation with a view to guaranteeing and enhancing excellence
in service.
Ensure respect for community, good governance and compliance in everything we do.
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Recruitment
Internal Search
First of all, the Administration Department searches for the capable person for any vacant
post within the organization. It means that, they promote the lower order workers to upper order
in the organizational chart. But for this promotion every employee has to have some qualifica-
tions and these are:
(c) S/he must have to serve the organization for at least for a fixed period of time. This period
is a variable for different posts. Such as, for promotion in the same department one worker only
needs seniority and two years of service in the organization. But for promotion from service
level to officer level, one must have at least four years of service in the same post in the organi-
zation, which is six years for promotion to executive level from officer level.
Employee Referrals/Recommendations
If the above process does not meet the requirement, the organization then goes for Employee
Referrals or Recommendations. They suggest their employees to recommend some eligible per-
sons for vacant posts and then test those persons and if they pass, give them the opportunity
to work in the organization. Usually, service and staff level workers are recruited through this
process..
Advertisement
When the organization requires quite a large number of workers at one time, they go for
advertisement in the national dailies. Normally service or junior level officers, but sometimes,
senior officers are also recruited through this process. Candidates with the required qualification
apply with a full bio-data and with a hand-written application. The application is not granted if
it is not written by the applicant himself..
Selection
Initial Screening
First, through the initial screening process, they sort out the applications of those who have the
actual qualifications [Degree, age, experience (if necessary)] for the post. Then these candidates
are sent the admit card for the employment test.
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Employment Test
The City Bank Ltd. has a two step employment test- the written test and the interview. The
bank contacts with some other organizations, like IBA, BIBM or any other institute, to conduct
the written test for them. The bank sails the boat in that organization, where their cost will be
minimal. The selected organization then takes the written test, screens out the answer sheets and
sends the number-sheet to the bank. The bank has a preset standard score and those who have
scored more than or equal to that score are called for the interview. The bank itself conducts
the interview. The bank hires reputed banking specialists within the country for conducting the
interview. After the interview the total marks of the written test and the interview are added.
Those who are at the top of the final list get the opportunity to serve in the organization. The
background checking of the employee is done at the interview time and through the bio-data the
candidates submit.
Final Selection
The candidates who pass both the written test and the interview are considered for final appoint-
ment. Within those candidates the required number of employees are taken and given the final
appointment. These employees have to fill up an appointment form at the time of joining. (The
form is attached with the report in the Appendix I). Those of them, who are currently employed,
do not have a previous banking experience have to go serve as a trainee for at least two years.
Those who have previous experience are not necessarily need to be trained. Sometimes the se-
lected employee has to submit a bond that, s/he will not leave the organization before certain
years of service.
The City Bank Ltd. has a system of training the employees on a regularly basis, particularly
the newly appointed employee. The bank has a training institute of its own with high computer
facilities, where every year some training courses are completed. The bank sometimes sends
its employees to other organizations for more training. In the last year (1998) the bank trained
291 employees in 15 courses in its own institute and also got 81 employees trained in various
30 courses conducted by the Bangladesh Institute of Bank Management (BIBM). In the current
year the bank has also taken some training program.
Motivation
One of the main criteria for effective human resource management is motivation. For the
desired result of any organization, motivating the employees is very important. So the City Bank
Ltd. also tries to motivate its employees. But the bank does not have a standard motivational
process. It motivates only with the help of increment. One thing about this increment is that
it has no specific period. The increments may be annual, semi-annual or quarterly, depending
upon the overall performance of the workers and the bank itself.
The human resource officer informed us that they believe in McGregor‟s “Theory Y” and
emphasize the safety and love need for all employees. So besides the increment, the bank some-
times tries to motivate the employees by full-filling their required needs of the employee. But as
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it is a centralized organization, management plays a big role with the administrative department
in determining these motivating factors. The bank is always cautious that all the hygiene factors
are present in the environment and that if the employees are not motivated, at least they are not
de-motivated.
Performance Appraisal
Unlike the selection, training and motivation process the City Bank Ltd. does not have a
standard performance appraisal process. Though it has a system but it is not very effective
according to Mr. Mushtaque Ahmed. Actually the problem is that the bank does not have a
standard set of performance evaluation System. The performance evaluation and appraisal is
therefore done mostly by the observation on how the employee is doing or dealing with a client.
The City Bank Ltd. has a special unit, under its Administrative Department, to conduct this
performance evaluation and appraisal. This unit keeps its eyes on the performance of all the
employees throughout the year and suggests necessary actions (Reward or Punishment) where
it is necessary. Sometimes special task committee visits any branch without any precaution. In
this way the bank conducts its performance measurement and appraisal process.
Reward System
As the bank does not have any specific performance evaluation and appraisal system it does
not provide any standard reward system. If any employee can really impress the authority by
his/her extra-ordinary performance s/he is then usually financially rewarded, which compara-
tively has a low effect on the employee who is in quite a higher level of the organizational
ladder. On the whole, increment is the only reward that the bank uses for motivating or appreci-
ating its employees.
Compensation Administration
The bank thinks that its compensation package is very sensitive and confidential and can-
not be exposed to the people from outside. Here we are again very grateful to Mr. Mushtaque
Ahmed for providing us with some portion of this confidential information. The bank‟s pay
structure is pretty much dependent on job evaluation. It means that the bank tries to compensate
according to the job difficulty or in other words job hierarchy.
The bank compensate firstly by „classification method‟ of job evaluation and then by „rank-
ing method‟. While compensating any worker, the bank first determines the class of that post.
(The City Bank Ltd. has four classes of employees – Executives, Officers, Service Workers and
Staffs). After classifying, the bank, determines the rank of the post within the classification and
compensates according to the compensation scale. The Administrative Officer could not provide
us with the pay scale because of some internal problems but informed us that the compensation
scale is attractive enough for the employees working in the bank.
Besides this normal pay scale, the bank has special compensation system for the higher
level employees (the Executive Level employees). The bank provides these employees not only
according to the standard scale but also some additional services like providing residence, tele-
phone etc.
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Chapter III
FINDINGS
32
Chapter 3
OVERALL FINDINGS
3.1 FINDINGS
After the collection and analysis of data I have got some findings. This findings are completely
from my personal point of view. Those are given below:
- The Bank can not practices proper HRM guideline. The HRM have some objectives but the
bank can not follow all those objectives.
- Training and development sector, there are on-the-job and off-the-job training techniques the
bank follow some technique, but the bank can not follow arranges off-the-job techniques video
and films show.
- In the recruitment sector, Banking Sector of Bangladesh. Can not follow the proper guideline
of HRM.
- To evaluate employee‟s performance, Banking Sector of Bangladesh can not provide their em-
ployee‟s performance properly.
- The orientation process, the bank can not follow of those process.
- There are several ways of employee‟s rewards, such as intrinsic vs. Extrinsic rewards, financial
vs. non financial rewards, and performance- based vs. membership rewards, but the bank can
not provides all of the system.
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* MTBL offers a competitive remuneration, good environment and favorable organizational cul-
ture in order to offer suitable candidates.
* At the time of selection, MTBL takes all the necessary steps which will ensure that it will have
efficient and skilled labor.
* MTBL hire employees on the basis of contract of two years which is also long time and is
obstacle to attract suitable candidates.
* Over competition among banking sector, Instable stock market & High call money rate.
* Organizational Structure is flat for each and every department, so employee can easily com-
municate with their supervisor. In MTBL employees are evaluated all the time. As a result they
are always worried about their performance. For a service provided organization, it is necessary
to evaluate the employees but some time the presser may de-motivate them. So they have to
make clear concept about the evaluation process to create motivation among them.
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* The bank does not accurately follow the performance appraisal. There is being occurs some
discrimination, nepotism are exercised. As a result, employees with same efficiency are given
different score by different author.
* The Pay Packages of the Bank is not competitive in comparing to other Bank operating in
Bangladesh.
* Though the organization is not in lacking of employees, but I think there is lacking of proper
employees- that means “lack of right people in right place”.
* Succession Planning involves having senior executives periodically review their top executives
and those in the next lower level to determine several backups for each senior position. This is
important because it often takes years of grooming to develop effective senior managers. But
the organization has not focus yet such a succession planning.
* Some employees says that extra work load in a regular basis is a common criteria of the orga-
nization. For this reason, the bank sometime loss employees attractiveness.
* Only the head office contains HR division and all the HR activities are controlled from the
head office. For this reason, when sometimes any HR problems raised employees have to wait
for a long time to solve it. Moreover, this department is not too structured.
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Chapter IV
RECOMMENDATIONS AND
CONCLUSION
36
Chapter 4
RECOMMENDATIONS AND
CONCLUSION
4.1 RECOMMENDATIONS
I gather the experience of human resource management and how manage an information
system of an organization. I gather some problems by discussing the HR personnel. So I would
like to recommend about those problems as follows.
With 49 branches Mutual Trust Bank has 711 employees. But in HR department the num-
bers of employees are 10 to 12. When something change for all employees like Increment it is
tough for them to update whole employees‟ file. It is too hard for HR employees to update all
employees‟ data. I have gone through a focus group discussion (FGD) with HR employees and
they also discussing that, the HR department should be gradually extended at the branch level
as the bank is expanding so that each branch has a HR official. A Study on Human Resource
Management and Human Resource Information System of Mutual Trust Bank.
Mutual Trust Bank management and particularly the Board of Directors must change the
System of appointing people by giving their reference. It has been deeply observed that most of
the reference appointees are not up to the standard and have a poor performance.
For the sake of the bank‟s future and further strengthening the quality of work force, this ten-
dency to appoint people on reference must be stopped. It may not be absolutely possible to
eliminate the reference appointment system as it is a local private company.
But still the tendency can be reduced to a certain extent if bold steps are undertaken by the
management and the Board of Directors.
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Currently the branches do not have qualified system operators, rather ordinary persons have
been appointed in this position and they learned the job by a trail and error process. This
tendency should be eliminated immediately and next time the management or the concerned
department should recruit qualified and skilled system operators who have both hands on expe-
rience as well as some academic background.
Mutual Trust Bank has fully automated system in Human Resource Department. But they
don‟t totally utilize this software. Still they do paper based work. In case of Salary payment they
use Excel Sheet Record. It is true that it is too hard for HR employees to update all employees‟
data. But they have the system and they should utilize that properly.
Formulating a succession planning and better salary package is helpful to retain the employee
and it will save the organization from incurring loss in Training and Development program. If
the succession planning and salary package is not attractive, the organization may face lack of
talented employee.
A proper evaluation system is very essential for the organization. If the evaluation process
does not reflect the real scenario all other efforts will be ruin miserably. In case of bank, as
the branch Manager and Deputy Branch Manger handles the whole HR activities in the branch
level, so they should be trained on Human Resource Management. To get proper evaluation
result the HRD may go through a cross functional evaluation process, as instance, each and ev-
ery member of a branch will evaluate separately all the employees, except thyself, of that branch.
The HRD may formulate a secret evaluation form which will be evaluated by each and every
employee of a branch, except the branch Manager and the Deputy Manager to evaluate the HR
practice of the Branch Manager and Deputy Branch Manager.
The Recruitment board should be HRD oriented. HRD can find out the best fitted employ-
ees for the organization. And the organization should not have any predetermined preference
for any institute‟s student, because sometimes it causes bias decision. The diversified workforce
could be a better team which may fulfill the organization‟s need properly.
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The bank should increase the total number of trained employee year by year.
The bank should undertake other incentives along with increments to motivate employees. Non-
monetary incentives might be a great motivation for the officers and service workers.
The bank should also introduce gain-sharing approaches to motivate its employees. Profit-
sharing can be considered in this aspect. Also, after serving the bank for a certain amount of
time, the bank may provide the employees with partial ownership of the bank. This will reduce
turnover.
The bank does not have any practice of “Human Resource Survey”, which is a negative point
for the bank‟s Administrative Department. Therefore, this practice should be introduced to the
bank‟s HRM policies.
The bank may provide insurance benefits (especially health-related and life insurance) to the
employees as an additional motivating factor.
At present, the bank does not have any systematic practice of employee counseling. Such a
practice might be beneficial to the employees.
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4.4 CONCLUSIONS
Bangladesh is a developing country with an impoverished banking system, particularly in
terms of the services and customer care provided by the government run banks. In recent times,
private banks are trying to imitate the banking structure of the more developed countries, but
this attempt is often foiled by inexpert or politically motivated government policies executed
by the central bank of Bangladesh, Bangladesh Bank. The outcome is a banking system fos-
tering corruption and illegal monetary activities/laundering etc. by the politically powerful and
criminals, while at the same time making the attainment of services or the performance of in-
ternational transactions difficult for the ordinary citizens, students studying abroad or through
distance learning, general customers etc. Private banks in Bangladesh prepared their financial
report in accordance with Generally Accepted Accounting Principles (GAAP), International Ac-
counting Standards (IASs) adopted as Bangladesh Accounting Standards (BASs) on the basis of
going concern under historical cost convention and applicable legislative laws and regulations.
This report is the result of three month‟s internship program in the Human Resource Depart-
ment of Mutual Trust Bank Limited. Human resource department plays a vital role in operating
a company. These banks have this department since it started operating in this country. This
department is working effectively and efficiently and continuously putting some extra effort to
be always up to date to keep up with the world. Practicing HR has a positive impact on the
performance of the bank. Being a complete separate department to deal with some key respon-
sibilities, they are more focused on what they are doing and for his reason their efficiency is
improving day by day. So from my opinion companies which got no HR department should
take immediate initiative to start practicing HR in their companies. Regarding my days spent
at Mutual Trust Bank, I gathered knowledge that is going to help me in building my career in
future. In my report, I have tried to reflect my understanding and experience that I have gathered
as correctly as possible. In spite of this, there may be some imperfections. From the practical
point of view I can declare boldly that I really have enjoyed my Internship program at that
branch from the very first day.
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REFERENCES
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Thesis Paper on
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REFERENCES
Books, Journals and Internet Sources
* Aston Centre for Human Resources (2008) Strategic human resource management: building
research-based practice. Mumbai: Jaico Publishing House.
* Brewster, C. (2011) International human resource management. 3rd ed. London: Chartered
Institute of Personnel and Development.
* Chalofsky, N.E., Rocco, T.S. and Morris, M. (eds.) (2014) Handbook of human resource
development. Hoboken, NJ: John Wiley & Sons.
* Banking in Bangladesh:
https://en.wikipedia.org/wiki/Banking in Bangladesh
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