Course ID: HRM301Course Title: Introduction to Human Resource
ManagementSection: Group: Spring 2015Report on: Human Resource
Management Practices in BangladeshChosen Company: Prime Bank
LTD.Submitted By:Name: Numan Ibne Fahim #ID:1220672 Name: #ID:
Submitted To: Dr. A. N. M. Shibly Noman Khan (Associate
Professor)
Letter of Transmittal11th April, 2015Dr. A. N. M. Shibly Noman
Khan,School of Business,Independent University, Bangladesh.
Subject: Submission of the Report on Human Resource Management
Practices in Bangladesh
Dear Sir,With due respect and humble submission, on behalf of
Group , I would like to inform employee that my group members and I
are the students of , submitting our report on Human Resource
Management Practices in Bangladesh .In the writing of the report we
have tried to follow all the guidelines provided by employee and
tried to make our analysis in an effective way. We have worked very
hard and finally made this report. We also want to claim that
throughout our work, we did not do anything unethical. We would
like to request employee to consider our limitations and grant our
report to make our hard work successful. We have made some
recommendations for future researcher so that the findings of our
report can be more justified. We appreciate all sort of criticism
and we most welcome any queries. Sincerely,Numan Ibne FahimID:
1220672(Behalf of Group)
AcknowledgementApart from the efforts made by us, the success of
any project depends largely on the encouragement and guidelines of
many others. We take this opportunity to express our gratitude to
the people who have been instrumental in the successful completion
of this project.Our first acknowledge goes to the almighty Allah
for bestowing us the patience and courage to finish this huge task
within its deadline.Then we would like to show our greatest
appreciation to our honorable faculty Dr. A. N. M. Shibly Noman
Khan. We cant thank him enough for his tremendous support and help.
We feel motivated and encouraged every time we attend his classes.
Without his encouragement and guidance this project would not have
materialized.Acknowledgments must go to the team members, whose
unflagging patience and astounding capacity for creative work, and
long hours made the project both possible and successful under the
pressure of knocking deadline.The guidance and support received
from all the persons who contributed and to this project was vital
for the success of the project. We are grateful for their constant
support and help.
Executive Summery
In our report, we have tried to show the Human resource
management system of Prime Bank. For that we first give a formal
introduction, objective of our study, methodology, Data sources,
Limitation of our report as instruction. After That we find out the
company overview, Historical background,vision and mission and
factory location which means branches of our chosen company.Then we
entered into main thing which was most essential part of our
report. In this part we show the human resources management process
of Prime Bank, recruitment process, compensation system, training
and development, employee testing and selection process of Prime
Bank. To understand these steps we did an empirical study with some
managerial persons of Prime Bank Bangladesh. We used various
articles to explain these topics. These relations among these
between these topics helped us to understand the issues. All these
topics are explained broadly in this report. The Final Part is
conclusion of our entire report.
IntroductionA companys work frame and performance always depends
on their human resource management department. Because of the
select and develop employees for the company, includes conducting
jobanalyses,planningpersonnelneeds,recruitingtherightpeople for the
job, orienting
andtraining,managingwagesandsalaries,providingbenefitsandincentives,
evaluatingperformance, resolvingdisputes, and communicating with
all employees at all levels.Examplesof corequalitiesof HR
management are extensiveknowledgeof theindustry,leadership, and
effectivenegotiationskills. Formerlycalledpersonnel
management.There are some process to manage human resourceHuman
Resource Management is important for banks because banking is a
service industry. Management of people and management of risk are
two key challenges facing banks. How employee manage the people and
how employee manage the risks determines employeer success in the
banking business. Efficient risk management may not be possible
without efficient and skilled manpower. Banking has been and will
always be a "People Business". Though pricing is important, there
may be other valid reasons why people select and stay with a
particular bank. Banks must try to distinguish themselves by
creating their own niches or images, especially in transparent
situations with a high level of competitiveness. Now a Days Most of
the banks never used to believe in training before. They were
holding the traditional view that managers are born and not made.
There were also some views that training is a very costly affair
and not worth the time and efforts involved. Organizations used to
believe more in executive pinching. But now the scenario seems to
be changing. Organizations have now realized the importance of
corporate training. Training is now considered as more of retention
tool than a cost. In coming times, the very survival of the banks
would depend on customer satisfaction. Those who do not meet the
customer expectations will find survival difficult. Banks must
articulate and emphasize the core values to attract and retain
certain customer segments. Values such as "sound", "reliable",
"innovative", "international", "close", "socially responsible" etc.
need to be emphasized through concrete actions on the ground and it
would be the banks human resource that would deliver this.Objective
Of the StudyEvery task depends on a particular aim. Without
objective never a study can reach to its destination. The main
objectives of this study are to find out the overall HRM process of
Prime Banks. The objectives of the study are mentioned as under:1.
To know overall HRM process of Prime Banks.2. To acquire knowledge
about their recruitment process.3. To know the factors of HRM
departments of Prime banks.4. To know about banks employment
planning.5. To be familiar with the employee testing and selection
process.6. To learn about the employee compensation and
rewards.
Methodology Question survey technique was used to solicit the
data. The target respondents are managerial-level employees of
Prime Bank located in the Baushundhara Residential Area. The
questionnaire(See. Appendix) comprised three different sections. In
First Section there are Thirteen items concerned with human
resource management approaches. Respondents were asked to indicate
their extent of agreement using a five-point Likert scale with
different types of scales. Then in second Section Eight question
concerned with organizational performance for the human resource
system. asked the respondents to indicate the extent of these
training types in their organization using a five-point Likert
scale where 5 =Strongly disagree, to 1 = Strongly Agree).In third
section there are 6 discussion question(See. Appendix) for what we
want brief answer Discussion sessions with HR officials in Head
Office. Brief because of time concern. We used the secondary source
to do our extra study we needed.
Data Sources Mainly we collect our information from two sources.
Both Primary and Secondary sources. Primary Sources1. interview
with branch manager2. Interview with operations manager and some
other employees of HRD3. Discussion sessions with HR officials in
Head Office.
Secondary Sources :1. Annual report of Prime Bank Ltd. in
Bangladesh.2. Performance appraisal format.3. Performance appraisal
guideline provided by the Human Resources division.4. Different
types of websites through Internet.Limitation Of The Study 1.
Shortage of time is main limitation, which made the research a bit
flaw.2. The secondary source of information was not enough to
complete the report.3. In many cases, up to date information was
not published.4. Confidentiality.5. There were a few questions
which were tactfully avoided or not exactly answered by the
respondents6. Getting relevant papers and documents ware strictly
prohibited.7. Large scale research was not possible due to
constraints and restrictions posed by the organization.
Company ProfilePrime Bankis a proud commercialbank and a famous
financial intermediariesin Bangladesh with a long historyof
achievements. Within a short period of time PBL has managed to
establish itself as a strong performer in the financial market. It
is rapidly expanding and enjoying a high growth rate. Prime Bank
offers all kinds of Commercial Corporate and Personal Banking
services covering all segments of society. Diversification of
products and services include Corporate Banking, Retail Banking and
Consumer Banking right from industry to agriculture, and real
estate to software. Prime Bank Limited (PBL) is considered as the
leading private sector bank of the country in terms of efficiency,
capital adequacy, asset quality, sound management and
profitability. Prime Bank now carries on its Islamic banking
operations through 5 (five) Islamic Banking Branches.. The bank is
constantly serving people and the economy of the country by raising
aggregate demand, production and thus creating wealth for the
economy. The Prime Bank Ltd. has a responsibility to ensure
efficient and effective banking operation in a sound manner. The
bank has been graded as a top class bank in the country through
internationally accepted CAMELS rating. The bank has already
occupied an enviable position among its competitors after achieving
success in all areas of business operation.Prime Bank Ltd., since
its beginning has attached more importance in technology
integration. In order to retain competitive edge, investment in
technology is always a top agenda and under constant focus. Keeping
the network within a reasonable limit, their strategy is to serve
the customers through capacity building across multi-delivery
channels. Their past performance gives an indication of their
strength. They are better placed and poised to take their customers
through fast changing times and enable them to compete more
effectively in the market they operate in.
HR department of PBL is also a essential part of this profile.
This department is run by a team of efficient professionals. They
create and generate an environment of trust and discipline that
encourages and motivates everyone in the Bank to work together for
achieving the objectives of the Bank. The culture of maintaining
congenial work. Environment in the Bank has further enabled the
staff to benchmark themselves better against management
expectations. A commitment to quality and excellence in service is
the hallmark of their identity.Historical BackgroundPrime Bank was
created and commencement of business started on 17th April 1995.
The sponsors are reputed personalities in the field of trade and
commerce and their stake ranges from shipping to textile and
finance to energy etc.As a fully licensed commercial bank, Prime
Bank is being managed by a highly professional and dedicated team
with long experience in banking. They constantly focus on
understanding and anticipating customer needs. As the banking
scenario undergoes changes so is the bank and it repositions itself
in the changed market condition.Prime Bank has already made
significant progress within a very short period of its existence.
The bank has been graded as a top class bank in the country through
internationally accepted CAMELS rating. The bank has already
occupied an enviable position among its competitors after achieving
success in all areas of business operation.Prime Bank offers all
kinds of Commercial Corporate and Personal Banking services
covering all segments of society within the framework of Banking
Company Act and rules and regulations laid down by our central
bank. Diversification of products and services include Corporate
Banking, Retail Banking and Consumer Banking right from industry to
agriculture, and real state to software.Prime Bank, since its
beginning has attached more importance in technology integration.
In order to retain competitive edge, investment in technology is
always a top agenda and under constant focus. Keeping the network
within a reasonable limit, our strategy is to serve the customers
through capacity building across multi-delivery channels. Our past
performance gives an indication of our strength. We are better
placed and poised to take our customers through fast changing times
and enable them compete more effectively in the market they
operate.Prime Bank Limited has been licensed by the Government of
Bangladesh as a scheduled commercial bank in the private sector in
pursuance of the policy of liberalization of banking and financial
services and facilities in Bangladesh. In view of the above , the
bank, within a period of 14 years of its operations, achieved
remarkable success fully meeting capital adequacy requirement of
Bangladesh Bank.The VisionTo be the best Private commercial Banks
of Bangladesh in terms of efficiency, capital adequacy, asset
quality, sound management and profitability.It has almost all the
characteristics of the effectively worded vision statement, like it
is graphic, directional, focused, feasible and desirable.
The Mission To build Prime Bank LTD. Into an efficient, market
driven customer focused institution with good corporate governance
structure. Continuous improvement of their business policies
procedures and efficiency through integration of technology at all
levels Factory Location Here we considered all the head branch of
prime Bank LTD as their factory.
Address:Adamjee Court Annex Building-2,119-120, Motijheel C/A,
Dhaka-1000Bangladesh
Human Resource Process of Prime Bank LTD
Human Resources Strategy of the Bank constantly strives and
renews its commitment to meet the career aspiration and priorities
of the employees.HR resources are becoming scarce both in quality
and quantity. And, it is quite elementary that any resource that is
in short supply needs to be properly managed for the benefit of
society and, therefore, they are giving to pay attention to the
entire Human Resource Management process. They think now need to
manage the people and for this employee need to discriminate
between the people, means positive discrimination. The entire
spectrum of HR practice requires revolutionary changes if the banks
have to survive. Managing the people is the key challenge. And, in
my opinion, discrimination is the key word when dealing with
people. Employee will notice that I will use this word very
frequently during my discussion.They maintain their HR management
in following steps:
A) Planning :
While PBL planning their people requirement they feel it is very
important for employee to develop their employer brand, which is,
the banks reputation as an employer to attract, engage and retain
talented candidates and employees. HR department of PBL always plan
for the following: A steady, carefully calibrated recruitment
programmer. As rapid technological changes transform business
continuous skill up-gradation. A new generation of the workforce
will be working alongside an older generation asa team. Banking, in
my opinion is a team work and this new situation will require
cultural adjustments and therefore, change management.
B) Acquiring the right people/Recruitment:
Their recruitment tests do not focus on testing the
psychological abilities of candidates to ensure that only the ones
with right attitude towards the job are selected. This is why they
often end up with people having brilliant minds but incapable of
actually delivering on the tasks assigned.PBL always give a
seriously look at lateral recruitment as an option to induct
specialists atvarious levels with specific skill sets and
experience pool. While we have often heard ofpeople leaving banks
to join finance, legal, accounting firms, etc. seldom have we heard
ofpeople leaving these professions to join banks. it is the same
limited talent pool that will be targeted by Banks, Financial
Institutions, Insurance, Telecom and other industries which are on
fast growth track and in need of talented manpower. PBL thinks the
right people will come only if they are paid competitive salaries.
However, too much pay also involves moral hazard issues and invites
adverse attention of external stakeholders.
C) Training/Developing their employee:PBL always requires
massive re-skilling of the existing workforce and continuous skill
up. PBL developing their selected employees in two ways, Fist one
is Periodic training and second one is Recruitment training . To
see how its employees are carrying out their jobs It happens
periodically in every 6 months or 1 year its called periodic
Training . Recruitment training is given to each employee every
month. They thinks the best development of people is through
empowerment. People at all levels in their bank must feel
empowered. For this, employees workforce developing day by day.
Another most important area of Human Resource Management, the
foundation of which is discrimination. HR managers often focus on
this segment and try to cater to their needs first. focus should be
on the remaining 85% as any improvement in their performance would
have a significant impact on the organizations performance. As the
word of PBL manager, focus should be on the remaining 85% as any
improvement in their performance would have a significant impact on
the organizations performance. PBL bank helps its employees better
themselves by providing feedback about the particular employees
past performance. They evaluate performance of their employees by
appraising performance which is comparing actually result with one
desired outcome and also performance review. A fair, transparent
and objective mechanism for performance management is a must for
PBL because an effective Performance Management System isthe key to
talent management and succession planning. The HR system/ process
of PBL is that it should be objective and transparent. These traits
are essential for the manpower to repose trust in the organizations
systems/ processes. No HR function can be effective if it does not
enjoy the trust and confidence of its constituentsCompensation
First of all PBL gives their employee a good reputed fixed salary.
There are many festival in our country like Eid ul fitre, Eid ul
Azha, Durga Puza.in these kinds of festival PBL give bonus to their
employees. Like as every other banks PBL provide bonus to the
employees for achieving their estimated performance goals. PBL
provides their employees all types of loan facilities. The main
facility in load is, the interest rate for their employees only
7-10%. PBL provides bonus to its all employees from the profit it
earns. For the future of the employee ,they provide them a good
pension plan. For this they cut 10% from their employees salary
every month. They provide Medical and Maternity/Delivery leave to
their employees.
Training And Development ProcessTraining Benefits:
Organizational Individual Personnel and Human RelationsTrainings Of
PBL: Skills training Team training Ethics training Refresher
training Skill Training Most common in all organizations Process is
fairly simple Skills training is done for basic skills
Team training Team training throws light on: How members should
communicate with each other How they have to cooperate and get
ahead How they should deal with conflictful situations How they
should find their way, using collective wisdom
Refresher training
Rapid changes in technology causes refresher training.Eg:-
computerization in an organization. Short term courses are
conducted for refresher training Training is done at regular
intervals Training is conducted by outside consultants or
specialists.
Ethics training Helps to establish ethical values. This training
is included in a newly hired employees orientation program. Part of
an ongoing developmental training program Provided to all employees
as a periodic reinforcement of ethical principles.
Recruitment Process of PBL 1. External Recruitment2. Internal
Recruitment
External Recruitment Policy
Recruitment Policy of Prime Bank LTD(PBL) is formulated to
ensure an efficient and transparent recruitment process for the
bank. Human Resources Division is responsible for all recruiting
activities. Line manager and divisional head will be consulted at
different stages of recruitment process by HR. Strict
confidentiality will be maintained by the concerned personnel
involved with recruitment process. Any exception to the following
clauses can only be made by Managing Director & CEO.
Educational QualificationIndividuals joining at Management Trainee
& Officers (fresh, without prior experience) level at PBL have
to have a graduate degree, completing four years of graduation in
any discipline from UGC approved universities of Bangladesh or
renowned universities from abroad. Individuals who have completed
B.Com or the likes (less than four years of graduation) will need
to have a post graduate degree in order to be eligible to apply for
the above mentioned posts. However candidates who have done only
graduation (below four years) will be eligible to apply for junior
officer/Cash officer. Medical TestIn PBL, the job offer is
contingent on passing medical examination conducted by the Bank
nominated diagnostic centre. Reference CheckBank may go for
reference check wherever deemed necessary and HR must do the
reference check.
External Recruitment Process
Internal Recruitment PolicyPBL encourages people to grow from
within and therefore will give equal opportunity to recruit
suitable candidates internally against any vacancies. The internal
job posting will be donesimultaneously with the external job advert
and the internal candidate will be given equal chance to compete
with the external short listed candidate for a specific job
opening. Internal candidates can only apply for a specific job
opening after taking approval from line manager and divisional head
in the provided form. An internal candidate need to have spent at
least six months in his current role to be able to apply for
lateral internal move, and at least one year in his current role to
be able to apply for a opening in a higher position.
Recruitment Procedure: The Prime Bank Ltd uses an in-house
function which ensures consistent recruitment from opening to
opening. As they use in-house functions they have greater control
on the recruitment process and they can easily execute different
aspects of recruitment properly. The Prime Bank Ltd pursued
centralized recruitment policies. That is recruitment activities
are coordinated by the Human Resource Division. The advantages of
this centralization recruitment are quick decision making,
elimination of duplication, limitation of time, low cost and
efforts. It has a strong online application system. Generally they
post the advertising on www.bdjobs.com. The applicants send their
resumes through www.bdjobs.com. Later on HR Officials sorts out the
resumes according to the criteria. The Head of Human Resource along
with the other stuffs do all the HR activities in The Prime Bank
Ltd. They maintain Human Resource Information System (HRIS) for
their employees. There is fair and equal treatment in different
categories of the jobs in The Prime Bank Ltd. Male and female
employees are treated equally in Prime Bank. There is no gender
discrimination. There is no proper guideline in The Prime Bank Ltd
regarding the recruitment budget. There is little effort of HR
division for continuous development in recruitment process. The
world is changing and recruitment process as well. They are using
the same methods and strategies year after year because they are
familiar with the practice and it is working. In many cases
employees has to be selected upon request provided by the Directors
and in some cases Bangladesh bank officials.
Selection Process of PBL Selection involves the series of steps
by which the candidates are screened for choosing the most suitable
persons for vacant posts. It is the process of differentiating
between applicants in order to identify and hire those with
greaterlikelihood of success in job. The basic purpose of selection
process is to choose the right candidate to fill the various
positions in the organization. Selection is a negative process as
it involves rejection of the unsuitable candidates. selection is
concerned with selecting the most suitable candidate through
various interviews and tests. selection results in a contract of
service between the employer and the selected employee.Procedure:
Usually, the selection is a time consuming procedure. All the
processes go through the decentralized decision making process that
takes more time to complete the whole selection process. The
applicants send their resumes through www.bdjobs.com. These resumes
are then sorted for particular competencies. These sorted and
varied resumes are then entered in the database to weed out any
probable entry mistakes. The whole process takes considerable
length of time as the number of applicants often reaches staggering
number. The persons who are selected in the process are only
contacted When selection takes place, The Prime Bank Ltd loses more
qualified candidate because within this time most of the candidates
joined in another organizations. In case of security guard, tea-boy
and cleaner, they follow outsourcing. That is they hire the
employees from employment agencies. Those workers work on temporary
basis in The PBL. There is a contract between The PBL and the
supplier.
ConclusionThe Prime Bank Ltd is a bank that confirms the best
service to the customers as well as to the employees by Human
Resource Division. The PBL is the fastest growing Bank in
Bangladesh. By working in HR Division the knowledge was learnt
would be helpful enough to sustain with the real organizational
environment. Banking business is an emerging concept from
Bangladeshs point of view. Day-by-day, it is getting popular in the
middle class people. From very beginning The PBL has successfully
run their business with well reputation now they create their own
interest on capacity in banking business. The Banking business has
a great prospect in Bangladesh Recommendation The Human Resource
need identification should be done by HR department rather than
divisional Head. It will facilitate the proper control of HR on
different Branches and it will be possible to procure the actual
number of employees. The CVs of applicants should be sorted on the
basis of degree or skill as early as possible which will save
valuable time to internal CV sourcing. An online database of all
employees should be developed so that every employee has individual
online profile account and it can be accessed at a time by more
than one employee. Customer service skill are needed some
improvement and effective steps should be taken to provide one stop
service related training as early as possible. Computerized
database of salary is required from Jan- Aug 2009. It will take
more time if the data of salary is being input to database
manually. Branches should make the soft copy and send it to the HR.
The front liner banks are providing higher salary and picking the
efficient employees. The HR should make regular assessment here.
There should be sufficient budget for Recruitment, Selection and
Hiring purpose. For some valuable positions, selection decisions
can be made centrally to avoid time. Reference should not be used
as selection criteria because there is a chance to select a wrong
person. AppendixQuestions Eight items concerned with competitive
strategy(1) We emphasize product quality via the use of quality
circles/work improvement teams.(2) We use strict cost control
systems for monitoring performance.(3) We emphasize effective
co-ordination among different functional areas to ensure customer
satisfaction.(4) We are constantly seeking new business
opportunities.(5) We emphasize continuous improvement of
products/services to secure a long-term competitive edge.(6) We set
prices below those of competitors.(7) We are usually the first
company to introduce new brands or products in the market. (8) We
cut overhead costs to maintain competitive power.
Thirteen items concerned with human resource management
approaches(1) Are job vacancies mostly filled from internal or
external sources? Internal (5) External(2) How explicit are job
descriptions? Explicit (5) Inexplicit (1).(3) Are there single or
multiple promotion ladders? Multiple (5) Single (1).(4) What type
of career path does the establishment provide to staff? Broad (5)
Narrow (5) What assessment criteria are used by your performance
appraisal system? Long-term Short-term (1).(6) To what extent does
your appraisal system emphasize individual or group criteria in
assessing performance? Group (5) Individual (1).(7) To what extent
is training and development a valued function in your
establishment? High (5) Low (1).(8) To what extent are career paths
designed to favor functional specialization? All around(5)
Professional (1).(9) How do the basic pay and salary levels you
offer compare to those of other companies in your industry? High
(5) Low (1).(10) Please indicate the importance that your
establishment attaches to the factor of internal equity in
determining rewards. High (5) Low (1).(11) Please indicate the
importance that your establishment attaches to the factor of
external equity in determining rewards. High (5) Low (1).(12) What
degree of employment security is offered to your employees? High
(5) Low (1).(13) How important is the financial incentive element
included in the reward package offered? High (5) Low (1). Eight
items concerned with organizational performance(1) Our overall
business performance is high compared to that of others in the same
industry.(2) Our staff turnover rate is highly satisfactory.(3) We
have gained market share relative to our competitors.(4) Our profit
growth compares favorably with that of our competitors.(5) Our
return on investment compares favorably with that of our
competitors.(6) Our sales growth compares favorably with that of
our competitors.(7) Our return on sales is highly satisfactory.(8)
Staff morale in our company compares favorably with that of our
competitors