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A Report on
HRM Practice in Banking Sector:Private Banks vs public Banks
Course Name: Human Resource Management
Course Code: MGT 3227

Submitted to:
Md. Miraj Hossen
Lecturer
Department of Management Studies

Submitted by:
Group Name: Sunflower
Section: A
BBA, 6
th
Batch
3
rd
Year, 2
nd
Semester
Department of Management Studies
Jagannath University

Date of Submission: April 30, 2014
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Group Name: SUNFLOWER
Section: A
Profile of Group Members:
SL. No. Name ID No.

Remarks
1. Simon Sarker 114903

2. Imran Hoque Mollah 114919

3. Sajid Iqbal 114969

4. Naima Azad Ifa 114979

5. Md. Mostafizur Rahman 114993

6. Romana Akther 115001

7. Manik saha 115005

8. Md. Taijul Islam 115007

9. Md. Mahmudul Hasan 115009

10. Delowar Hossain 115015




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Acknowledgement

First of all we would like to thank the Almighty for giving us the strength, and
the aptitude to complete this report within due time. We are deeply indebted
to our course teacher, mentor, and counselor, Md. Miraj Hossen for assigning
us such an interesting topic named A Report on HRM Practice in Banking
Sector:Private Banks vs public Banks. We also express the depth of my
appreciation to our honorable course teacher for his suggestion and
guidelines, which helped us in completing this report.


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Letter of Transmittal
30
th
April, 2014
Md. Miraj Hossen,
Lecturer,
Department of Management Studies,
Jagannath University, Dhaka.

Subject: Submission of Report on HRM Practice in Banking Sector:Private Banks
vs public Banks

Sir,
We are the student of Department of Management studies, Jagannath University,
Dhaka and also from the group named Sunflower. A report was given us by you on
HRM Practice in Banking Sector:Private Banks vs public Banks for submitting.
We are really happy to have such a report of challenging and interesting like this and
also thanks to you for making us worthy for corporate. During the preparation of this
report we learn something very extra in practical which will be very helpful for us in
future. There were some obstacles we have faced at the time of preparing this report.
But we have overcome all the obstacles by the endeavor effort by each member of our
group.
We had taken at most care to present this report and this report has been excellent
outlet for combining theoretical and practical aspect. We are really grateful to you for
giving us such a great job & opportunity like this to prove our ability in making a quality
report. We had limitations at the time of preparing this report. So mistakes may occur in
preparing this report. We hope you will take our mistakes forgivingly.

Yours sincerely,
On behalf of the group


Manik Saha
Sec: A
Group Name: Sunflower
Department of Management Studies
Jagannath University, Dhaka
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Table of Contents
Chapter no. Topics Page No.

Ch 01
Executive Summary
08
Introduction
09
Objectives of the study
10
Methodology
11
Limitation of the study
11





Ch 02
Banking Industry in Bangladesh
13
HRM Practices of Dhaka Bank Limited
14-21
HRM Practice of City Bank Limited

22-26
HRM Practice of IFIC Bank Limited
27-30
HRM Practices of Southeast Bank ltd
31-35
HRM Practices Of Uttara Bank Ltd
36-43
HRM Practices of Sonali Bank
44-47
HRM Practices of Agrani Bank
48-52

CH-03
Analysis & Findings
54
Recommendation
55
Conclusion
56

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Table of Chart
Serial No. Graph Name Page
1.
2.
3.
4.
5.
Method of Training and Development
Pattern of compensation
Pattern of Reward and Benefit
Method of Training and Development
Pattern of compensation

41
43
43
50-51
51


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CHAPTER- ONE




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Executive Summery
Modern Banking follows development driven process by changing financial activities and work
environment. In banking sector they follow employee perception and motivation. The main
objectives of this project are to find out the overall HRM process of private banks and public
bank of Bangladesh. Especially the discussion of the report are to know overall HRM process of
the bank and to acquire practical knowledge on HRM practice. 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. Practicing HR has a positive impact
on the performance of the bank. Being a complete separate department to deal with some key
responsibilities, 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. The success of banks largely
depends on the intellectual development of the employees. Along with intellectual development
of the knowledge worker, technical infrastructures of the bank must be ensured to enhance the
effectiveness of the employee and the bank. Generally, the banking profession in Bangladesh is
recognized with standardized salary scale, higher social status and dignity.

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Introduction

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.
Employees are the core resources of any organization, without them, one cannot run their
organization and human resource is conducted with the growth of development of people
toward higher level of competency, creativity and fulfillment. It keep employees become
better more responsible person and then it tries to create a climate in which they contribute
to the limits of their improved abilities. It assumes that expanded capabilities and
opportunities for people with lead directly to improvement in operating effectiveness.
Essentially, the human resource approach means that people better result.
So, establishing the structure of the bank assists in determining the skills, knowledge and
abilities of job holders. To ensure appropriate personnel are available to meet the
requirements set during the strategic planning process.

This effort is to determine what HRM requirements exists for current and future supplies and
demands for workers. Because this bank believes that the quality work comes from quality
workers who are well motivated and ready to take challenge to provide better service. HRM is
the strategic and coherent approach to the management of an organizations most valued
assets. The people working there who individually and collectively contribute to the achievement
of the objective of the business. HRM and HR have largely replaced the term Personnel
management as a descriptive of the process involved in managing people in an organization.
HRM is evolving rapidly. HRM is both an academic theory and a business practice that address
the theoretical and practical techniques of managing a workforce. Employees play a dual role in
an organization first as a factor of production and second as a motive force for other factors of
production. It makes other factors operative and productive. People are the most valuable asset
of an organization. Yet human assets are virtually never shown on the balance sheet.



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Objectives of the Study
Every task has a particular aim. A study without objective cannot reach its
destination. The main objectives of this study are to find out the overall HRM
process of various banks of Bangladesh. The objectives of the study
conducted in the banks are mentioned as under:
1. To know overall HRM process of the public banks and private banks
2. To acquire practical knowledge on HRM practice
3. To know the functions of various departments of HRM
4. To learns about banks employment planning
5. To be familiar with the recruitment and selection process
6. To learn about the employee benefits
7. Making a precise picture of the present situation of employment procedure
in Bangladesh






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Methodology
Mainly we have collected data from two sources. These two sources are as
following:
1. Primary sources &
2. Secondary sources

The Primary sources of my information are as below:

Direct observation
Expert opinion &
Questioning the concerned persons

The secondary sources of my information are as below:
Website
Desk report of the related department.
Other manual information.
Different reference books of the library
News paper
Articles
Internship report
Limitation of the study
While conducting the report on HRM Practice in Banking Sector:Private
Banks vs public Banks some limitations were yet present there:
1. Less analytical power, Non-cooperative behaviors of some officials of the
bank,
2. There were a few questions which were tactfully avoided or not exactly
answered by the respondents,
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3. Large scale research was not possible due to constraints and restrictions
posed by the organization,
4. Recent data and information on different activities was unavailable.
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CHAPTER- TWO
THEORETICAL ASPECTS






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Banking Industry in Bangladesh

The Banking Industry in Bangladesh is one characterized by strict regulations and
monitoring from the central governing body, the Bangladesh Bank. The chief concern is
that currently there are far too many banks for the market to sustain. A Bank is an
organization that engages in the business of Banking. Banks are depository financial
intermediaries linking the savers and users of fund. These intermediaries are interposed
between the ultimate borrowers and lenders permitting them efficient transfer of
entrepreneurs who need funds to take the advantage of economically and financially
viable investment opportunities. Thus, these commercial banks have a positive rule in
financing and investment which is a multidimensional process involving the complexity
of many interrelated and interdependent factors of diversified nature.
Banks are financial services firms, producing and selling professional management of
the publics funds as well as performing many other roles in the economy. The scope of
the business changes over time and in recent years has broadened considerably. In
essence, banks perform three functions: (1) Provide the means of payment through
administering the checking account system; (2) intermediate between depositor and
providing all types of loans to borrowers; and (3) provide a variety of financial services,
encompassing fiduciary services, investment banking and off balance sheet risk taking.
All domestic banks were nationalized after independence and placed under the direct
control of the Ministry of Finance. In addition to state owned banks there exists a
significant and growing private sector consisting of both purely domestic banks as well
as branches of foreign banks. As a result, the market will only accommodate only
those banks that can transpire as the most competitive and profitable ones in the future.
Currently, the major financial institutions under the banking system include:

1. Bangladesh Bank
2. Commercial Banks
3. Islamic Banks
4. Leasing Companies
5. Finance Companies

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HRM PRACTICE OF PRIVATE BANKS
Human Resource Management Practices of Dhaka Bank Limited
Key facts about Dhaka Bank Limited (DBL):
The Banks that were given license during the mid 90s are called the 2
nd
Generation private
Commercial Banks. Dhaka Bank Limited (DBL) is one of them that incorporated as a public
limited company under the Companies Act in 1994 and is governed by banking Companies Act,
1991. The Bank started its commercial operation on July 05, 1995. Since its incorporation, DBL
has proved itself as a true development partner of the Government in developing the national
economy providing efficient banking services to different sectors of the economy.
The Mission of DBL:
To be the premier financial institution in the country providing high quality products and
services backed by latest technology and a term of highly motivated personnel to deliver
Excellence in banking.
The Vision of DBL:
At Dhaka Bank we draw our inspiration from the distance stars. Our team is committed to
assure a standard that makes every banking transaction a pleasurable experience. Our
endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery,
cutting edge technology, and tailored solution for business needs, global reach in trade and
commerce and high yield on your investment.
Our People, products and processes are aligned to meet demand of our discerning customers.
Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to
deliver a quality that demonstrates a true reflection of our vision- Excellence in Banking.
Units of HR:
There are three units in Human Resource Division of Dhaka Bank Ltd.:
1. HR Staffing
2. HR Operation
3. Training & Development
1. HR Staffing:
Activities in HRM concerned with seeking and hiring qualified employees is Staffing.
A company needs a well defined reason for needing individuals who posses specific skills,
knowledge and abilities to specify the job. Employee referrals can produce the best applicants
for two reasons. First, current employees screen applicants before referring them. Second,
current employees believe that their reputations with the firm will be reflected in the
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candidates that they recommend. Activities in HRM concerned with seeking and hiring
qualified employees is Staffing.
A company needs a well defined reason for needing individuals who posses specific skills,
knowledge and abilities to specify the job. Employee referrals can produce the best applicants
for two reasons. First, current employees screen applicants before referring them. Second,
current employees believe that their reputations with the firm will be reflected in the
candidates that they recommend.
Three officers are working in HR staffing unit. They perform the following activities-
a. Recruitment & Selection
b. Leave Management
c. Personal Dossier Management
d. Disciplinary Matters

1. a. Recruitment & Selection:
Recruiting is the initial step of staffing. Recruiting is the process of locating, identifying, and
attracting capable employees. Many companies are finding new employees on the World Wide
Web. The source that is used should reflect the local labor market, the type or level of position,
and the size of the organization. Now the second step of Staffing, that is strategic HR planning.
For that a company plans strategically.
Third step is selection. This process is attracting qualified applicators and discouraging the
unqualified applicants. By this a company can get its desired employees of requirement. It has
dual focus, attempting thin out the large set of applications that arrived during the recruiting
phase and to select an applicant who will be successful on the job. For selection of candidates
things that are taken into consideration includes appearance, attitudes, knowledge, qualification,
Communication skill, Job knowledge (for lateral entry), etc. To achieve this goal, companies can
use a variety of steps. HRM must communicate a variety of information to the applicants, such as
the organization culture. Under the selection process there are some steps:
The company can use these steps to select the employees. With this process their Staffing job is
done. The completed selection process ends the staffing functions. The company can use these
steps to select the employees. With this process their Staffing job is done. The completed
selection process ends the staffing functions.
b. Leave management:
Leave is earned by duty. Leave cannot be claimed as a matter of right, and leave admissible
under the service rule of Dhaka Bank Ltd. may be granted by the Managing Director or his
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authorized person, who may refuse leave, grant leave for a shorter period than applied for,
revoke leave of any description and recall an employee before the expiry of the leave.
One Principal Officer is looking after the leave matter of employees and keeping leave records.
Employees of our bank are enjoying following leave:
Casual leave is usually processed in respective branch/division by the respective manager &
head. All other leaves are processed by the HR Division. The leave application along with
recommendation of head/manager sent to the HR Division and processed by the concerned
officer of the division. LFA also processed in HR Division and disbursement also been done
centrally by HR Division. Most of the processes & records are manual in nature. The HR Software
SCALED has little support in this regard.
c. Personnel Dossier Management:
All employees history and records are kept in personal file of each employee. Employee related
data are also stored throw HR software SCALED (Skill set Competency Assessment for Logical
Evaluation and Development). All files are kept safely in the File Cabinet of HR Division.
d. Disciplinary Matters:
All employees are subject to disciplinary measures and liable to different penalties based on the
degree of infringements of Banks policies, dereliction of duty, and breach of contract, discipline
and misconduct.
Disciplinary Procedures:
Management may initiate disciplinary proceedings against any staff member on grounds of
misconduct or misdemeanor. No disciplinary proceeding shall be drawn up unless these
procedures are followed:
An enquiry committee shall be formed by the Managing Director
A preliminary enquiry is held into charges and the prima-facie case is made out based on
the findings of the enquiry
Charges should be drawn up and a copy therefore is given to the offending staff member
by Human Resources Division.
Depending upon the gravity of the misconduct, the staff members may be placed under
suspension pending enquiry and disposal of his/her case.
The staff member is given one weeks (7 working days) time to explain his/her
circumstances / conduct
A detailed enquiry is held based on the explanation of the staff member during which
he/she is given a personal hearing.
2. HR Operations:
HR operations unit mainly work in the area of short term and long-term benefits of the
employees of DBL, like salary, bonus, provident fund, gratuity, super annuation fund, etc.
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Monthly Salary Disbursement
Preparation and disbursement of Festival Bonus and Performance Bonus
Employees Final Settlement.
Staff House Building Loan
Maintain liaison with different hospitals, which are under the corporate agreement with
Dhaka Bank Limited.
Submission of various Salary related MIS report to the Management & Regulatory bodies.
SBS Reporting
Work as System Admin in HR department
Assist in Appraisal Management
PF Loan disbursement
LFA disbursement
Investment with the gratuity and PF fund
Employee Tax processing, etc.

3. Training and Development:
Training is one of the important activities of human resource management. In the training process
companies try to motivate and train the employees in a manner so that they can work more
effectively in the future. Under the training process there are some steps they are given below:
a. Employee orientation:
Employee orientation provides new employees with the basic background information they
need to perform their jobs satisfactorily. Companies arrange an orientation program for the
employees.
In an orientation program the employees should feel-
feel welcome
understand the organization in a broad sense
be clear about what the firm expects in terms of work and behavior
begin the process of socialization
b. Employee training:
There is some process, method and techniques of employee training. A company follows the all
the steps of training to provide the employees a good look on their work.
c. Employee development:
Employee development is like the output of training. In development stage employees are
motivated after their proper training. The development of an employee can be organizational.
Organization development aims to change the attitudes, values, and beliefs of employees so that
the employees can identify and implement changes.

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d. Career development:
The career development stage is given below:
Pre transition: Is simply looking for a job and preparing oneself for a career.
Transition: An individual is already having a job and developing oneself for future career or
moving to another career.
Preferred area: An individual prefers a specific sector of the career.
Early stage: First 1-5 years of career is called early career.
Mid career: 5-20 years after the career starts.
Late career: Late career starts after 20 years of job life
Retirement: And finally after completing the stages of career and individual decides to retired.

Recruitment
Whenever there is a need to fill in a vacancy, the concerned division involved will raise an
Employee Requisition Form. This form along with the Job Descriptions and Persons
Specification, thereafter, should be forwarded to the Human Resources Division for processing.
A. Types of Recruitment:
a. For Internal Recruitment:
The principal methods are-
Job posting
Use of computerized skills inventories
Referrals from other departments
b. For External Recruitment:
Organizations rely on-
Advertisements
Public or private placement agencies
Field recruiting
Including campus recruiting
Internships

B. Point of Recruitment:
There are two level of recruitment.
1. Entry level
2. Lateral entry ( Recruitment of experienced person)

Selection:
All prospective candidates are required to complete an Application Form for Employment. The HR
Division along with the concerned Function Head will be responsible for processing applications,
screening applicants, and short listing qualified candidates.
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The HR Division contacts the qualified candidate/s and arranges appropriate tests for any
position to identify the potential of the candidates based on Job Description and Persons
Specification
Written tests for appointment will cover the following areas
Knowledge in English
General intelligence, knowledge and numeracy.
Computer skills
Knowledge in relevant Functional area

Written or Job Tests:
It is mandatory for short-listed candidates to sit for a written test for the post of Probationary
Officer and Trainee Assistant/Trainee Assistant Cash Officer.
Apart from the above, for other positions, as decided by the Management, candidates short-listed
may be required to sit for written test and or a practical job related test and or formal interview.
Interviews
Appointment / Hiring
Age limit
Medical Fitness
Gradation
Service Register
Confirmation
Career Advancement:
It is the Banks policy to ensure that each employee is developed s fully as his ability,
performance and opportunity within which the Bank may permit. To this end periodic reviews will
be made to determine the performance and potential of employees and, if necessary, the training
required to enable them to progress to more senior positions. It must be made clear, however,
that promotion can take place only if the following conditions are satisfied:
1. The Employee is proficient satisfactory to fill a higher position
2. There is a vacancy at the higher level
Opportunities for employee advancement will be created through exposing them to challenging
job/responsibilities that enable appropriate development of the employee. Individual career
planning is expected on the employees own initiative and in coordination with Human Resource
Division, individual or Group Counseling / Coaching will be provided by HRD.


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Pay Policies of Dhaka Bank Ltd.
a) Remuneration
b) Salary
c) Provident Fund
d) Gratuity
e) Loan Facilities
f) Medical Facilities and Health Insurance

Promotion/Up-gradation
Promotion cannot be claimed as a matter of right and all promotions shall be made on merit and
no employee shall have a claim to be promoted to a higher grade by virtue of his seniority alone.
All promotions shall be made be on the basis of Performance and different criterion laid down by
the Management from time to time.
An employee may get Accelerated promotion once within a year based on his/her performance
a) Promotion in Executive Grade
b) Promotion in Officer Grade
Bonus of DBL
Festival Bonus
Performance Bonus / Profitability Bonus / Incentive Bonus
Employee Training and Development:
(a) Training and Development needs of employees are identified on a regular basis, and
accordingly they are nominated for the following training:
1. In-house training (DBTI)
2. Local training
3. Regional training
4. Overseas training
(b) Whenever an opportunity comes up, an employee may be sent abroad for training and
development so that they gain knowledge and experience and perform better at work place.
(c) On return from training/attachment an employee may be required to submit a Trip Report to
his/her Functional Head and debrief the Management Committee about the learning through
presentation within 15 days of return as and when requested by the Management.
(d) An employee should also submit an Action Plan on the training for transfer of learning to the
work place.
(e) An employee may be asked to sign an indemnity bond to ensure continuity of service before
he/she goes / after he/she returns from training overseas, such indemnity will be determined by
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the Management based on the length of training, years of service and track record of the
employee concern.


Retirement:
01) Retiring Age:
(a) Retirement age is 60 years. An employee will retire from services at the end of the month in
which his/her 60
th
birth anniversary.
(b) The management may, however as its discretion, in special circumstances and in the
interest of the Bank, appoint any member after retirement on Contract basis beyond the age of 60
years subject to such terms and conditions and in absence of such specialized skilled employee
on the Terms mutually agreed.
(c) An employee may be required to proceed on early retirement at the discretion of the
management once he/she has completed 25 years service with the Bank or an employee may
retire voluntarily after completion of 25 years of active service with the Bank.
01) Retirement on Health Grounds:
(a) An employee may retire on grounds of ill health, before attaining the age of 60 years at the
discretion of the management.
(b) In the event of such retirement, to overcome the adversity / hardship, the management may
consider appointment / employment / recruitment of his/her children in the Bank. Provided his/her
children conforms all the pre-requisites of the recruitment policy of the Bank.





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Human Resource Management Practice of City Bank Limited
The City Bank Limited is a full service scheduled commercial bank. It has both local and
International Institutional shareholder. The bank is primarily driven with a view of creating
opportunities and pursuing market niches not traditionally meet by conventional banks. 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. The City Bank Ltd. started
its journey in the service sector on March 27, 1983 with only with one branch. But, now it has
76 branches throughout the whole country and serves its clients proudly. Head office of this
bank is at 10 Dilkusha C/A (Jibon Bima Tower) Dhaka.

HRM in the City Bank Ltd.:
When we contacted in the City Bank Ltd., we came to know that the organization has a
department called ADMINISTRATIVE DEPARTMENT, which is actually their Human
Resource Management department. This department, in the organization, performs a wide range
of tasks, though all of the HRM practices are not in the organization. All the branches of the
bank do not have the HRM or such department. Sony the head office has it; so this one
department has to keep track of all the employees in al the branches. This department performs
the duty of recruiting, selecting, training and development, motivating, job designing,
performance appraisal and rewarding and giving benefits etc.
Recruitment:
Selection and Recruitment is an integral part of any organization that heavily depends on their
workforce to successfully perform their mission and achieve their vision in the long run. Thus
appropriate selection of candidates to join in the workforce is a necessary part of Human
Resource Management, which is ensured by the Human Resource Division in The City Bank
Limited.

For recruitment the organization follows al the possible ways of recruitment.
Internal Search
Employee Referrals/Recommendations
Advertisement
Internal Job Posting
Promotion
Transfer on deputation
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Selection:
The banks selection procedure is as follows:
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.

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.

Final Selection:
The candidates who pass both the written test and the interview are considered for final
appointment. 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.

Employee Training and Development:
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.
The training program includes:

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

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On the Job Training:
The most widely used methods of training take place on the job. This can be attributed to the
simplicity of such methods and the impressions that try are less costly to operate. On -the -job
training places the employees in an actual work situation and makes them appear to be
immediately productive. It is learning by doing.
One of the drawbacks to on the job training can be low productivity while the employees develop
their skills.
Off- the -Job -Training:
Off-the -job training cover a number of techniques classroom lectures, films demonstrations,
case studies and other simulation exercises, and programmed instruction. The facilities needs for
each of these techniques vary for small makeshift classroom to an elaborate development center
with large lecture halls, supplemented by small conference rooms with sophisticated audiovisual
equipment, too many mirrors, and all the frills
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. The human resource officer informed us that they believe in
McGregors Theory Y and emphasize the safety and love need for all employees.
Motivates employees:
Individual
Group
Company-wide

Performance Appraisal:
The performance evaluation and appraisal is 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 it 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. In this way the bank conducts its performance measurement and
appraisal process.
Performance Appraisal Process:
Supervisors
Subordinates
Peers
Clients / Customers
Self appraisal
180/360 degree approach
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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 comparatively 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 appreciating its employees.

Benefit Package:
City Bank Ltd. has a very good benefit package. Firstly, for the staff level workers the bank
provides uniform and its maintenance expenditure (Officials and managers dont need any uniform).
The bank also has a package of different types of leaves for all level of employees. The bank
provides a satisfactory annual leave, sick leave and casual leave. The bank has provided the
opportunity for the employees to have extra leave for emergency situation. Female workers get three
months long maternity leave twice in their working lives in this organization. Besides this leave
package the bank provide an opportunity for the employees to have a provident fund, which the bank
and the employee share equally (5% contributed by both the worker and the employer). The bank
provides Fringe Benefits for its executive level employees.

The remuneration of employees consists of:
Basic Salary
House Rent and
Medical Allowance

Major employee benefits are:
Retirement plans
Health promotion programs
Paid time off
Family benefits
Insurance
Educational

Objectives of Pay & Benefits:
Reduce fatigue
Discourage labor unrest
Satisfy employee objectives
Aid recruitment
Reduce turnover
Minimize overtime cost

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Compensation Administration
The bank thinks that its compensation package is very sensitive and confidential and cannot be
exposed to the people from outside. The banks 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 ranking 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).
Protection in case of health & accident
Income upon retirement & termination.


Job Evaluation:
Orderly and systematic techniques Of determining the relative worth of various jobs within the
organization, So as to develop an equitable wage and salary structure.
The two most common methods of job evaluation that have been used are first, whole job
ranking, where jobs are taken as a whole and ranked against each other. The second method is
one of the awarding points for various aspects of the job.

Process of Job Evaluation:

Gaining Acceptance
Constituting Job evaluation Committee
Selecting Jobs to be evaluated
Describing the jobs
Selecting the method of job evaluation
Weighting job factors
Assigning money values
Periodic review





Page | 28

Human Resource Management Practice of IFIC Bank Limited
COMPANY BACKGROUND
International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company
incorporated in the Peoples Republic of Bangladesh with limited liability. It was set up at the
instance of the Government in 1976 as a joint venture between the Government of Bangladesh and
sponsors in the private sector with the objective of working as a finance company within the country
and setting up joint venture banks/financial institutions aboard. In 1983 when the Government
allowed banks in the private sector, IFIC was converted into a full fledged commercial bank. The
Government of the Peoples Republic of Bangladesh now holds 32.75% of the share capital of the
Bank. Directors and Sponsors own 8.62% of the share capital and the rest is held by the general
public.
HR Policy
Policy is guideline to action Human Resource policy is the most vital element of corporate policy
since it guides recruitment, selection, orientation training and placement of personnel.
Apparently human resource policy is concerned with proper use human required for undertaking
activities in order to achieve corporate goals and objectives. The same kind of human resource
is not appropriate for all kinds of organizations. A particular organization has to assemble and
develop manpower keeping in view with its planned and projected activities.
Components of Human Resource Policy
For achieving the objectives of human resource policy as aforesaid, the Bank has identified the
following human resource policy areas. The human resource policy issues starting from
recruitment to retirement consist of following:
Recruitment Policy
Background Checking Policy D Promotion Policy
Increment Policy D Leave Policy
Transfer and Posting Policy
Reward and Recognition Policy
Termination and Retirement Policy
Page | 29

Training Policy
Compensation Policy
Succession Planning Policy
Recruitment and Selection Policies
Although recruiting is frequently perceived as the initial step in the staffing function, it has
prerequisites. Specifically, before the first job candidate is sought, the HR specialist must
embark on employment planning. Specifically, when an organization plans strategically, it
determines its goals and objectives for a given period of time. These goals and objectives often
lead to structural changes in the organization; that is, these changes foster changes in job
requirements, reporting relationships, how individuals are grouped, and the like. As such, these
new or revised structures bring with them a host of pivotal jobs. It is these jobs that HRM must
be prepared to fill. HRM identifies the essential qualifications for a particular job.
Selection
The management of the bank will analyze the manpower requirement of branches at least once
a calendar. After assessment of manpower need in line with the organ gram of branches,
management will recruit required number of candidates as per policy. All appointments will be
made in accordance with IFIC bank services rules, bank administrative power and as per
norms/guidelines of Bangladesh Bank.
Written Test
Probationary officers will be hired every year through advertisements in national dailies. The test
will be conducted by IBA or BIBM, DU. If they are unable to take the test any other organization
may be entrusted with the responsibilities.
Promotion Policy
Promotion will be considered as VERTICAL ELEVATION in organizational hierarchy usually
with enhances pay, allowance, & status.
Promoting Factors
Academic as well as professional qualification
Knowledge of banking rules and regulations
Page | 30

Job performance as evident from performance appraisal reports
Length of services or seniority in the grade
Potential for development and contribution to the growth and development of the bank
Clean service record
Smartness
Satisfactory performance in interview
Performance Standards
Appraisal systems require performance standards, which serve as benchmarks against which
performance is measured. To hold employees accountable, a written record of the standards
should exist and employees should be advised of those standards before the evaluation occurs.
Ideally the appraisal of each employees performance should be based on actual performance
of the critical elements identified through job analysis.
Performance Measures
Performance evaluation also requires dependable performance measures, the ratings used to
evaluate performance. To be helpful, they determine performance. Dependable measures also
allow others using the same measures applied against the same standards to reach the same
conclusions about performance, adding to the reliability to the appraisal system. Performance
measures also may be subjective or objective.
Welfare Activities to the Employees
Leave Policy
Overtime Policy
Hospitalization
Insurance
Leave Travel
Retirement Benefits
Holiday Homes
Flexible Timings

Page | 31

Training and Development
Training involves the change of skills, knowledge, attitudes or behavior of employees. Although
training is similar to development in the methods used to attract learning; they differ in time
frames. Training is more present day oriented; its focus is on individuals' current jobs,
enhancing those specific skills and abilities to immediately perform their jobs. Foundation
courses have two parts:
Ttheoretical training in the academy and
Job rotation

Development
Specialized training programs in the areas like general banking, advance, foreign exchange,
marketing and accounts etc. are also organized by the Academy depending on need.
Frequently outreach programs are organized to meet demand for new and specialized skills.

Methods of Training
The academy holds need-based training courses/workshop/seminars etc. which are finalized by
Training & Research Division in constantly with various department and senior executives at
Head Office. Training inputs are constantly reviewed / modified for achieving the objective.
Methods in training include: discussion/ lecture/workshop/case study/games/ role play/ film
show/simulation/group work & Presentation/ project` Visit and so on.







Page | 32

Human Resource Management Practices of Southeast Bank ltd.
COMPANY BACKGROUND
The emergence of Southeast Bank Limited (SBL) was at the juncture of liberalization of global
economic activities. The experience of the prosperous economies of the Asian countries and in
particular of South Asia has been the driving force and the strategic operational policy option of the
Bank. The company philosophy A Bank with Vision has been precisely an essence of the
legend of success in the Asian countries.
Southeast Bank Limited, A Bank with a Vision, emerged as a 2nd Generation Commercial
Banking Industry of Bangladesh in the year 1995. It was incorporated on March 12, 1995 as a
public limited company according to the Companies Act 1994. The commencement of its banking
business occurred on May 25, 1995 by the Principal Branch located at the Annex Building, 1
Dilkusha Commercial Area, Motijheel, Dhaka. The Head Office of the Bank is also located at the
same address on the 3rd floor of Annex Building.
The Bank started with an authorized capital of Tk. 500 million and paid up capital of Tk. 100 million.
Southeast Bank Limited started its business with the inaugural Chairman Mr. Mohammad Abul
Kashem, Vice Chairman Mr. Ragib Ali and the first and former President and Managing Director of
the Bank Mr. Syed Anisul Haq.
Recruitment Policy:
Recruitment Principle:
All appointment / recruitment in the bank will be made by direct recruitment as per
prescribed criteria or by promotion as per promotion policy approved and / or amended /
updated / by the competent authority from time to time.

Determining the Source of Recruitment:
The Bank for the purpose of recruitment uses different sources. The source varies for recruiting
personnel for different level/posts. Advertisement is generally used for recruiting people for all
levels while head hunting is used only to recruit upper level experienced bankers. The sources
used by the bank for the purpose of external recruitment are given below,

Advertisement
Pending CV
Interns
Page | 33

Walk-in Interview
Head Hunting
Recommendations/References
Contract and Temporary Basis Recruitment
Requirement for Recruitment:
No person shall be appointed in the service of the bank unless:

(a)The applicant is a citizen of Bangladesh. Provided, however, that this may not be
applicable in case of recruits abroad or in case where relaxation has been approved by the
Board on consideration of special circumstances.
(b)A qualified medical practitioner acceptable to the bank certifies that the applicant is
physically and mentally fit for service in the bank.
(c)The applicant has not been dismissed / terminate from the service or his service has
been dispensed with for any specific reason with his / her former employer for financial
irregularity or act of dishonesty / fraud / forgery. Those lateral entrants who have been
dismissed / terminated from the service of their former employers after submission of their
registrations with the intent to join Southeast Bank Limited shall, however, remain outside the
purview of these sub-rules.
(d)The age limit of the applicant for fresh entry in the Bank should be within the age
bracket of 18-30 years. For lateral entry, the maximum age limit will be 50 years. It will not,
however, be applicable in case of contractual employment.


General Flow Chart of Selection process:

Advertisement / submission of CVs at HRD, Head Office

Sorting out of application

Preparation of preliminary list

Page | 34

Calling the selected applicants for the written test

Holding written test

Selection of eligible candidates for the Interview (VIVA-VOCE)

Calling the selected candidates for the Interview

Conducted Interview

Investigation of applicant details

Preparation of desirable candidates list

Final approval by the competent authority

Physical fitness for employment

Appointment and Placement

Promotion/ Cadre Change Policy:
1. Promotion may be considered for the highly deserving employees having satisfactory
performance and service record.
2. Promotion is not a matter of right. It has to be earned by merit and performance.
3. Employees having adverse ratings in performance appraisal form/ACR or under
disciplinary action may not be considered for promotion / cadre change.
4. Promotion/ change of cadre usually may take place once in a year to be effective from
1st January of each year.
5. Promotion may take place subject to availability of sanctioned post in the higher grades.
6. Individuals may be promoted on the basis of following consideration:
1. The eligible employees will be evaluated on the basis of standard performance
Appraisal Form.
2. Individuals evaluated as outstanding or very Good may only be considered for
promotion.
7. For consideration of promotion minimum qualification requires is Graduation.
Page | 35

8. Bank may consider accelerated Promotion / cadre change of any employee irrespective of
fulfillment of promotion / cadre change criteria but having outstanding performance /
service records and making significant contribution to the causes of the Bank.
9. Individuals evaluated as outstanding but could not be considered for promotion / cadre
change because of non-fulfillment of promotion / cadre change policy / criteria may be
allowed one or more than one performance increment provided the employee fulfills the
criteria for annul increment (normal increment) in a particular financial year.
10. Initial Pay

a) Initial pay on promotion:
The initial of an employee promoted to a higher post shall be fixed at the minimum of the
scale of the higher post: Provided that if his pay in the lower post is equal to or higher than
the minimum in the scale of the higher post to which he is promoted, his pay in the higher
post shall be fixed at a next stage above his pay in the lower post.

b) Initial pay on cadre Change:
The initial pay of an employee Cadre Change to a particular post shall be fixed at the
minimum of the scale of the new post: Provided that if his pay in the present post is equal to
or higher than the minimum in the scale of the new post to which he is Cadre Changed, his
pay in the new post shall be fixed at a next stage above his pay in the existing post.

Leave Rules:
Leave application: All applications for leave shall be addressed to the Head of branch /
Relevant Department / Divisional Head which must contain his full address during the period
of leave applied for and in the case of leave on the ground of illness or maternity leave must
be supported by medical certificates indicating the period of leave recommended.

Grant if Leave
Absenting from Duty without Leave
Resumption of Duties
Report on Return from Leave
Medical leave
Page | 36

Types of Leave:
Subject to fulfilling the necessary conditions the following types of leave may be available to
an employee:

1) Casual leave
2) Privilege leave
3) Sick leave
4) Maternity leave

Employees benefits and facilities
Different kinds of benefits and facilities for the employees of the Bank are maintained by the HRD as
per the written rules and regulations of the Bank. Some of the benefits that are given to the
employees
1.Bonus
2.Provident Fund
3.Gratuity
4.Maternity Benefits
5.Medical Facilities
6.Loan Facilities
7.Superannuation Fund
8.Lave Fare Concession
9.Leave Encashment Benefits



Page | 37

Human Resource Management Practices Of UttaraBank Ltd
Background of Uttare Bank Ltd.
Uttara Bank Ltd. Establish in 28
th
January 1965 as private initiative under the name of Eastern
Banking Corporation. After 1972 being nationalized, it has been named after Uttara Bank Ltd. It has
been permitted to start its commercial operation privately in September 1983. Its registered office is
located in 90, Motijheel Commercial Area Dhaka-1000. It is operating banking through 198 branches
in all over Bangladesh. Having sold its share in 1984 it enlisted in Dhaka Stock exchange. In 2004 it
has also enlisted in Chittagong Stock exchange.

Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind of person who
should be hired for it.
The process of job analysis is of two types:
1. Job Description
2. Job Specification

Human Resource Planning:
Have collected Human resource planning is concerned with the flow of people into, through, and out
of an organization. HR planning involves anticipating the need for labor and the supply of labor and
then planning the programs necessary to ensure that the organization will have the right mix of
employees and skills when and where they are needed.

Supply of labor:
Once the demand for labor is predicted, it is necessary to forecast the supply of labor that the
organization will already have available to meet the demand. It is basically of two types:
1. Internal supply of labor
2. External supply of labor


Recruitment:
When a vacancy occurs and the recruiters receive authorization to fill it, the next step is a careful
examination of the job and an enumeration of the skills, abilities, and experience needed to perform
the job successfully.
The Recruitment Process of the Organization:
Page | 38





Method of recruitment:
There are two method of recruitment:
1. Internal recruitment
2. External recruitment

Internal recruitment:
Most companies fill vacancies internally whenever possible. A number of internal recruitment methods
are use for different level of jobs. Lower-level jobs such as manual and clerical jobs are often
called nonexempt jobs because their incumbents are not exempt from the minimum wage and
overtime provisions of the Fair Labor Standards Act. These people typically are paid an hourly wage.
In contrast, higher-level administrative, managerial, and professional employees are paid on a salary
basis and are exempt from the overtime provisions of the Fair standard Labor Act.

Page | 39

External recruitment:
In addition to looking internally for candidates, it is customary for organizations to open up recruiting
efforts to the external community. Through the recruiting process, the hiring manager should stay in
close touch with the recruiter. The hiring manager should examine resumes or application that have
passed initial screening by the recruiter and should also review some of the application that the
recruiter rejected during the first steps. Such involvement on the part of the hiring manager allows
feedback as to whether or not the recruiters decisions are consistent with the hiring managers
preferences.
External recruitment methods are often grouped into two classes: 1. Informal and 2. Formal.
Informal Method:
Informal recruiting methods tap a narrower labor market than formal method. Informal method
includes rehiring former employees or former cooperative education students, hiring people referred
by present employees, and hiring from among those who have applied without being solicited (such
applicants are called walk-ins or gate hires).
Employees referral, also known as word-of-mouth advertising, is quick, effective, and usually
inexpensive. Because employees who refer their friends and acquaintance as candidates have their
own credibility on the line, they tend to refer people who are well qualified and well motivated and
then to mentor these individuals once they are hired.
Formal Methods:
Formal method of external recruiting entail searching the labor market for candidates who have no
previous connection to the firm. These methods traditionally have included newspaper advertising, use
of employment agencies and executive search firms, and campus recruiting. Posting jobs ads on the
Internet, either on the companys own site or a commercial job board, has also become extremely
popular in the last few years. Historically, newspaper advertising has been the most commonly used
method of recruiting.
Formal method includes:
Recruitment Advertising
Internet Recruiting
Employment Agencies
Public Job Service Agencies
Private, For-profit Agencies
Unions
Additional Recruiting Methods
Campus Recruiting
Executive Search Firms etc.

Selection:
Selection the right employees are important for an organization. First own performance always
depends in part on subordinates. Employees with the right skills and attributes will do a better job for
the company. Employees without these skills wont perform effectively and as a result the firm will
suffer.

Page | 40

Process of selection:
Selection activities typically follow a standard pattern, beginning with an initial screening interview
and concluding with the final employment decision. The selection process typically consists of eight
steps:
Initial screening interview
1. Completing the application form
2. Employment test
3. Comprehensive interview
4. Background investigation
5. A Conditional job offer
6. Medical or physical examination
7. The permanent job offer.
Initial Screening:
As a culmination of our recruiting efforts, organization should be prepared to initiate a preliminary
review of potential acceptable candidates. This initial screening is, in effect, a two steps procedure: (1)
the screening of inquiries and (2) the provision of screening interviews.
Completion of the Application Form:
Once the in initial screening has been complicated, applicants are asked to complicate the
organizations application form. The amount of information required may be only the applicants name,
address, telephone number and other information.
Employment tests:
Organization historically relied to a considerable extent on intelligence, aptitude, ability and interest
tests to provide major input to the selection process.
The comprehensive interview:
The applicant may be interviewed by HRM interviewers, senior manager within the organization, a
potential supervisor, potential colleagues or some or all of these.
Background investigation:
The next steps in the process are to undertake a background investigation of those applicants who
appear to offer potential as employees. This can include contacting former employers to confirm the
candidates work record and to obtain their appraisal of his or her performance, contacting other job-
related and personal references, verifying the educational accomplishments shown on the application,
checking credit reference and criminal records, and even using third party investigation, to do the
background check.
Conditional job offer:
If a job applicant passed each steps of the selection process so far, it is typically customary for a
conditional job offer to be made. Conditional job offers usually are made by an HRM representative. In
essence, what the conditional job offer implies is that if everything checks out okay- passing a certain
medical, physical or substance abuse test the conditional nature of the job offer will be removed and
the offer will be permanent.
Page | 41


Physical/ Medical Examination:
Physical exams can only be used as a selection device to screen out those individuals who are unable
to physically comply with the requirements of a job.

Job offer:
Those individual who perform successfully in the preceding steps are now considered to be eligible to
receive the employment offer.

Training:
The process of teaching new employees the basic skills they need to perform their jobs.
Training refers to the methods used to give new or present employees the skills they need to
perform their jobs. Training might thus mean showing a machinist how to operate his or her new
machine, a new salesperson how to sell his or her firms product, or a new supervisor how to
interview and appraise employees. Training basically provide to the entry-level employees.
On the job training: It means learning by doing. It means employees training completed while he
works. It is basically a practical oriented training program.

Off the job training: It means training provided to the employees out of the office in a training
institute for a particular period of time i.e. for 15 to 20 days. During this time the employee does not
have to go to office.


Development:
Development basically provide to the management level. Management development is any attempt
to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills.
The ultimate aim of such development programs is, of course, to enhance the future performance of
the organization itself. For this reason, the general management development process consists:
(1) Assessing the companys needs (for instance, to fill future executive openings, or to boost
competitiveness),
(2) Appraising the managers performance, and then
(3) Developing the managers (and future managers) themselves.






Page | 42

Method of Training and Development:
There are some training and development methods which is given as under:

Performance appraisal:
Performance appraisal is defined as evaluating an employees current or past performance relative to
his or her performance standard. The appraisal process therefore involves:
1. Setting work standard
2. Assessing the employees actual performance relative to these standard and
3. Providing feedback to the employee with the aim of motivating the person to eliminate
performance deficiencies or to continue to perform above per.
Appraisal Methods:
The appraisal itself is generally conducted using a predetermine and formal method like one or more
of those described in this section.
Graphic Rating Scale:
A scale that lists a number of traits and a range of performance for each. The employee is then rated
by identifying the scale that best describes his or her level of performance for each trait.
Alternation Ranking Method:
Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are
ranked.
Paired Comparison Method:
Ranking employees by making a chart of all possible pairs of the employees for each trait and
indicating which is the better employee of the pair.
Page | 43

Forced Distribution Method: Similar to grading on a curve; predetermined
percentages of rates are placed in various performance categories.
Critical Incident Method:
Keeping a record of uncommonly good or undesirable examples of an employees work related
behavior and reviewing it with the employee at predetermined times.
Behaviorally Anchored Rating Scale (BARS):
An appraisal method that aims at combining the benefits of narrative critical incidents and quantified
ratings by anchoring a quantified scale with specific narrative examples of good and poor
performance.
Management by Objectives (MBO):
Involves setting specific measurable goals with each employee and then periodically reviewing the
progress made.
Compensation:
Employee compensation refers to all forms of pay or rewards going to employee and arising from their
employment, and it has two main components. There are direct financial payments in the form of
wages, salaries, incentives, commissions, and bonus and there are indirect payment in the form of
financial benefits like employer- paid insurance and vacations. Uttara Bank Limited usually provides
more or less the following compensation, reward and benefits.
Reward:
Reward basically provided to the employees of the organization for their good performance. It is of
two types (1) Intrinsic and (2) Extrinsic.
(1) Intrinsic Reward:
It is the personal satisfactions one gets from the job itself. These are self-initiated rewards, such as
having pride in ones work.
(2) Extrinsic Reward:
It includes money, promotions and benefit. Their common thread is that they are external to the job
and come from outside source, mainly management.
Benefits:
Benefits include mandatory protection programs, pay for time not worked, optional protection
programs, private retirement plans and a wide variety of other services.
Page | 44







Page | 45

HRM PRACTICE IN PUBLIC BANKS
HRM Practices of Sonali Bank

History of Sonali Bank
Sonali Bank Limited, the largest & leading commercial bank of the country, came into being in
1972 immediately after the emergence of Bangladesh as an independent state. A fully state-
owned enterprise, the bank has been discharging its nation-building responsibilities by
undertaking government entrusted different socio-economic schemes as well as money market
activities of its own volition, covering all spheres of the economy. Sonali Bank Limited
singularly enjoys the prestige of being the agent of the Central Bank of Bangladesh in such
places where the guardian of the money market has chosen not to act by itself. Sonali Bank
Limited is governed by a Board of Directors consisting of 9(nine) members headed by a
Chairman.

The Selection and Recruitment Process of Sonali Bank Limited
To know the future demand of human resources, the HR division of Sonali Bank Limited usually
provides all the other divisions and branches with a general form at the beginning of the year.
From the information collected from these forms, the HR division gets an estimate of the human
resource requirement for the year. No long term human resource forecasting is done in SBL. The
following table illustrates the number of branches of the bank and manpower in different years:
The recruitment goals of Sonali Bank Limited are to attract and retain highly qualified human
resources who will perform best in their respective areas. The bank not only tries to attract
wellqualified candidates but also tries to identify and recruit people who are really interested to
work in the bank for an acceptable period of time.

Types of Recruitment
SBL practices two types of recruitment
Yearly recruitment: this is done each year, according to the HR plan
Need-based recruitments: this is done when there is a sudden vacancy


Recruitment Sources and Methods
SBL usually promotes from within the organization. But it also recruits from external sources.
The external sources are:
Different universities
Competitors and other organizations
Unsolicited applicants
Campus recruiting will be handled by the HR Division and the overall planning for this will be
done based on the Annual Manpower Plan. However, the respective business
department/function requiring the profiles should have the responsibility and mandate to short-
list the campus-based candidates. The skill base generally recruited through this route will be
entry level positions. Therefore, the plan for campus recruitment will have to tie up with the
Page | 46

placement season of various universities that are targeted for recruitment. The HR Division
needs to identify a set of campuses based on the courses conducted there, any past experience of
candidates from these campuses and the emerging requirements of the bank.

The HR Division will need to take a decision regarding the source of external recruiting
considering variables like
Available spread of candidates
Cost impact
Time needed
And the external recruitment methods include:
Advertising in newspapers, company website etc.
Employee referrals
Internships

Selection Process
The different steps if the selection process is described below in detail:

Receipt of Applications
This is the first selection hurdle to join SBL. Candidates either send their CVs in application for
a specific vacancy, or they send unsolicited CVs for any suitable position. The HR division
collects job applications against each job vacancy. In case of newspaper advertisements, the
applicants are given at least 3 weeks to apply. After a specific period, each and every job is
closed for applying.

Sorting out of Applications
The next step is the short listing of CVs. Usually the HR division is engaged in the short listing.
But the HR division may delegate this step to the respective divisions (for which the selection is
being carried out) to save time. To recruit experienced bankers, CVs may be sorted out from the
collection of unsolicited CVs received. Or, another possibility is to find out experienced and
competent bankers in other banks. Once potential candidates are thus found out, they are
contacted and called for an interview.

Informing Candidates
After the applications are sorted out and a preliminary list is prepared, the candidates are
informed and are called for a written exam (for entry level positions) or an interview (for
experienced banker courier services seven to ten days prior to the exam.

Written Tests
The employment test is generally an aptitude test which measures the candidates verbal ability,
numerical ability, reasoning ability etc. The HR division contacts IBA/BIBM to design and
conduct the recruitment tests on behalf of the bank. The HR division provides them with the
desired academic qualification and the name of the vacant posts to construct the question paper
for the test.

Interview
The interviews that are conducted are panel interviews and not structured. The interview board
consists of the MD. DMDs, and the Head of HR. Even in the selection of fresh graduates for TA
Page | 47

or MT positions, those top level and executive level managers are present. Usually only one
interview is conducted for selecting a candidate for a position..

Final Approval by Competent Authority
After the interview is conducted and the interviewees are evaluated, the management committee
decides who is to be selected and who is to be rejected. After this final decision, an Offer Letter
is made for each selected candidate. Once the candidates accept this offer, they are given the
Appointment Letter. The candidates that are rejected are not informed.

Physical Examination
After the appointment letters are printed, the candidates are given one month for joining. First,
the candidates have to go through physical examinations. If the result of these physical
examinations is satisfactory, then the candidate is eligible to join the bank.

Joining and Placement
After the physical examination, the candidate needs to bring the result of the medical tests along
with all the necessary documents and academic certificates for joining. After going through the
formal joining and placement process, the candidates are finally employees of Sonali Bank
Limited.

Appointment

Classification of the post
The employees of the bank shall be classified designated as shown in the above illustration. Any
change, addition, in the classification and designation shall required prior approval of the board.
An employee of the bank, other than an officer appointed to a particular category of the position
shall continue in the same category.

Nationality
No position shall be appointed to any post in the service of the bank unless he is a citizen of
Bangladesh. Provided that the board may in special cases, waive this condition subject to
fulfillment of the condition regarded to employment of foreign nation in Bangladesh.
Age
A candidate shall not be less than twenty years and more than thirty years of age at the time of
appointment direct recruitment as a Probationary Officer and not less than eighteen years and
more than thirty years of age at the time of appointment by direct recruitment as a probationary.
Physical Fitness
No person shall be appointed in the service of the bank unless he is declared physically fit by the
Medical Officer of the bank or any other Medical authority specified by the bank in this behalf.
Termination of services
Termination
Resigned
Retirement
Page | 48

Performance Appraisal, Provident fund and Gratuity
Performance of Sonali Bank
Get a competitive salary with a wide range of fringe benefits. In order to sustain the employee
performance in the job employee of he organization provide different facilities for modern life
house rent allowances, medical allowances, transpirations allowances, house utility bills. The
Bank also gives various festive bonuses as well as other bonuses like performance bonuses,
security bonuses etc. According to Annual Confederation Report (ACR) officers also give
different cash awards and special increments. Promotion of employee is very regular like other
recognizes commercial banks.
Provident fund
There shall be a fund called The Sonali Bank Ltd Provident Fund which will be governed by a
separate provident fund rules approved by the broad. All payment employees shall compulsorily
be the member of Provident fund.
Gratuity
Every confirmed and full time employee who has rendered seven year continue service in the
Bank or more, a gratuity become a one month basic salary for each completed year of service
may be granted to him to retirement/resignation/termination or his family I the event of his
death while his service. The dismissed employee shall not be entitled to any gratuity.
Records and Service
The record service shall be maintained separately for each employee. An employee may inspect
His service book once in a year in the presence of the authorized office and after such inspection,
he shall put his signature with date indicating that the entries are correct and complete. If an
employee in course of his inspection discovers any inaccuracy or omission in the service book,
he may point it out in writing to the authorized officer within 15 days of the inspection.
Working Condition
The officers of Bank situated in the hart of the city, generally in commercial surrerindings.
Officers are centrally air conditationed and well decorated with modern furniture and
sophisticated technical Banking equipment. With the advancenced of technology, Officers of
the bank is now become paperless; most of the banking tasks are recorded are accomplished
here with strong banking software. Inter and intra office communications are generally held by
the telephone, fax, internet and cell phones.
Loan Facilities
An employees of this organization enjoy s various loan facilities like House building loan, car
loan, Furniture and household Electronics item loan under some schemes that employees enjoy
interest free loan facilities. Employees are in the higher post enjoy more amounts of loan
facilities.

HRM Practices of Agrani Bank
Agrani Bank Limited, a leading commercial bank with 867 outlets strategically located in almost
all the commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of
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overseas Correspondents, came into being in 1972 immediately after the emergence of
Bangladesh as an independent state. It started functioning as nationalized commercial bank
taking over assets and liabilities of the erst while Habib Bank ltd and commerce Bank ltd.
functioning in the East Pakistan.
It has been corporatized on 15th November.2007 and emerged as Agrani Bank Limited (ABL)
taking over assets, liability and goodwill of Agrani Bank.
Agrani Bank Limited is governed by a Board of Directors consisting of 11(eleven) members
headed by a chairman. The Bank is headed by the Managing director & Chief Executive Officer;
Managing director is assisted by Deputy Managing Director and General Managers. The bank
has 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 867 branches including 10
corporate and 40 AD( authorized dealer) branches. The corporate and AD branches are
authorized to deal in Foreign exchange business.

Recruitment process:
In the recruitment process there are couple of steps are to be followed:
1. Written test: The recruitment test is combined of both elaborative and MC.Q. type. Usually Agrani
Bank Ltd assigned this to some organization. The particular organization does all the thing. In the
written test a person has to obtain a certain marks to pass the exam.
2. VIVA: The candidate after qualifying written test has to face VIVA test. VIVA usually taken by the
top management of the bank. Only short listed candidate are selected finally for the job.
Method of recruitment:
There are two method of recruitment:
1. Internal recruitment
2. External recruitment
Internal recruitment:
A number of internal recruitment methods are use for different level of jobs. Lower-level jobs such
as manual and clerical jobs are often called nonexempt jobs because their incumbents are not
exempt from the minimum wage and overtime provisions of the Fair Labor Standards Act. These
people typically are paid an hourly wage. In contrast, higher-level administrative, managerial, and
professional employees are paid on a salary basis and are exempt from the overtime provisions of
the Fair standard Labor Act.
External recruitment:
In addition to looking internally for candidates, it is customary for organizations to open up
recruiting efforts to the external community. Through the recruiting process, the hiring manager
should stay in close touch with the recruiter. The hiring manager should examine resumes or
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application that have passed initial screening by the recruiter and should also review some of the
application that the recruiter rejected during the first steps. Such involvement on the part of the
hiring manager allows feedback as to whether or not the recruiters decisions are consistent with
the hiring managers preferences.
External recruitment methods are often grouped into two classes:
1. Informal and
2. Formal.
Formal method includes:
Recruitment Advertising
Internet Recruiting
Employment Agencies
Public Job Service Agencies
Private, For-profit Agencies
Unions
Additional Recruiting Methods
Campus Recruiting
Executive Search Firms etc.

Selection:
Selection the right employees are important for an organization. First own performance always
depends in part on subordinates. Employees with the right skills and attributes will do a better job
for the company. Employees without these skills wont perform effectively and as a result the firm
will suffer.
Process of selection:
Selection activities typically follow a standard pattern, beginning with an initial screening interview
and concluding with the final employment decision. The selection process typically consists of eight
steps:

1. Initial screening interview
2. Completing the application form
3. Employment test
4. Comprehensive interview
5. Background investigation
6. A Conditional job offer
7. Medical or physical examination
8. The permanent job offer.


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Training:
The process of teaching new employees the basic skills they need to perform their jobs.
Training refers to the methods used to give new or present employees the skills they need to
perform their jobs. Training might thus mean showing a machinist how to operate his or her new
machine, a new salesperson how to sell his or her firms product, or a new supervisor how to
interview and appraise employees. Training basically provide to the entry-level employees.
On the job training: It means learning by doing. It means employees training completed while he
works. It is basically a practical oriented training program.
Off the job training: It means training provided to the employees out of the office in a training
institute for a particular period of time i.e. for 15 to 20 days. During this time the employee does
not have to go to office.
Development:
Development basically provide to the management level. Management development is any
attempt to improve managerial performance by imparting knowledge, changing attitudes, or
increasing skills. The ultimate aim of such development programs is, of course, to enhance the
future performance of the organization itself. For this reason, the general management
development process consists:
(1) Assessing the companys needs (for instance, to fill future executive openings, or to boost
competitiveness),
(2) Appraising the managers performance, and then
(3) Developing the managers (and future managers) themselves.

Method of Training and Development:
There are some training and development methods which is given as under:
Training Development
1. On the job Training
2. Apprenticeship Training
3. Informal Learning
4. Job Instruction Training
5. Lecture
6. Program Learning
7. Vestibule or Simulated Training
8. Computer Base Training
9. Training Via CD- ROM and
the internet
1. Managerial on- the- job Training
2. Job Rotation
3. Role Playing
4. Behavior Modeling
5. In House Development Center
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Performance appraisal:
Performance appraisal is defined as evaluating an employees current or past performance
relative to his or her performance standard. The appraisal process therefore involves:
1. Setting work standard
2. Assessing the employees actual performance relative to these standard and
3. Providing feedback to the employee with the aim of motivating the person to eliminate performance
deficiencies or to continue to perform above per.
Compensations, Rewards and Benefits
Compensation:
Employee compensation refers to all forms of pay or rewards going to employee and arising from
their employment, and it has two main components. There are direct financial payments in the
form of wages, salaries, incentives, commissions, and bonus and there are indirect payment in
the form of financial benefits like employer- paid insurance and vacations.

Pattern of compensation

Financial
Basic Salary
Bonus
Wages
Incentive
Commission
Housing facilities
Transportation
Medical
Education facilities for children
Vacation
Insurance


Reward:
Reward basically provided to the employees of the organization for their good performance. It is
of two types:
(1) Intrinsic and
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(2) Extrinsic.
(1) Intrinsic Reward:
It is the personal satisfactions one gets from the job itself. These are self-initiated rewards, such
as having pride in ones work.
(2) Extrinsic Reward:
It includes money, promotions and benefit. Their common thread is that they are external to the
job and come from outside source, mainly management.
Benefits:
Benefits include mandatory protection programs, pay for time not worked, optional protection
programs, private retirement plans and a wide variety of other services.
Pattern of Reward and Benefit
Reward
Increment (Double/ Triple)
Cash Benefit
Promotion
Best performance
Provident fund
Group Insurance
Profit bonus
Gratuity


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CHAPTER- THREE
CONCLUSION PART




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Analysis & Findings
Private banks are more efficient than the public banks in HRM practice.
Private banks follow HRM rules and practices properly.
Violence of rules and regulations is seen not to promote a person.
Both vertical and horizontal types of promotion are maintained.
Disciplinary Action Type of action t take when objective arises from employees.
On the job training, job rotation, understanding method, lecture method, and courses
methods are used for training.
Cot problem is the main problem when implemented the HRM issues.
Lack of coordination in exchange of transferring HRM information among various banks.

The study found that each bank has its own training institute for human resource
development activities but there is no proper HR information system in any of the
surveyed banks. All human resources were centrally managed by their respective
headquarter.

All banks followed same procedural steps for selection and employment of qualified
employees: completion of application form, employment test (CV scrutinize, written, viva-
voce), comprehensive interview (simulation test, presentation, case analysis), and final
employee selection.




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Recommendation
Recruitment and selection should be fair.
Political interference should be stopped as quickly as possible in order to select the best
candidates.
The corrupted employee should be forced to retire and honest, committed fresh
university graduate should recruit though management aptitude test as an officer.
Records of accidents, turnover, and absences and tardiness should be properly
maintained.
Job analysis and job description should be prepared elaborately so that the personnel
can understand their duties and responsibilities.
Mangers, senior officers and officers should be trained up both inside and outside from
the bank in order to cope with the changing condition.
HR development activities as individual, career and organizational by the HR
department for enhancing the employees growth as well as achieve organizational
hierarchy.

More training, professional development is required for more often. Officers should be
sent for training for betterment of service.

Banks should organize seminars, workshops, conferences, different short courses, and
training programmes on financial matters, current issues, software up gradation on
regular basis that would definitely help to develop knowledgeable manpower, create
awareness and change mental attitudes among the professionals.

All banks and supporting bodies should allocate sufficient budget and sends competent
employees to international conferences and seminars to prepare them for the
competitive knowledge market of 21st century.

The banks should apply standard techniques for employees job evaluation,
performance measurement and audit as a routine work. On the basis of the result, their
duties and responsibilities should be redesigned and restructured. Because it will reduce
the repetitive work and reduce monotonous environment.

Banks have a separate human resources departments. But it is essential to empower
the department or divisions for handling different issues in HRM in banks. The divisions
should be incorporated with well-organized HRIS (human resource information systems)
and modern IT facilities.



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Conclusion
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 responsibilities, 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. The success of banks largely depends on
the intellectual development of the employees. Along with intellectual development of the
knowledge worker, technical infrastructures of the bank must be ensured to enhance the
effectiveness of the employee and the bank. Generally, the banking profession in
Bangladesh is recognized with standardized salary scale, higher social status and dignity. As
can be found from the study, human resources in banks were enjoying comparatively better
facilities under the rules of banking industry. Employees of the bank getting good number of
bonus and compensation, including salary grade, leave facilities, housing facilities, gratuities,
provident funds, and losses of accident or death of employees etc. The employees in private
bank are more satisfied with salary scale, job position, promotion scheme, working
environment but very worried about working hours and work pressure. Most of the
employees are less satisfied with HRM polices and practice, job analysis, IT facilities, job
evaluation and performance measurement technique. Human resources have been centrally
managed by all surveyed bank. Bank should decentralize their HR activities in all branches
and develop strong HR polices. Authority and responsibility should be properly distributed to
all HR managers.


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References
Books:
1. Decenzo, David A and Robbins, Stephen P; Human Resource Management, John Wiley & Sons,
New York, 2002.
2. Deslarer, Gray, 2003, Human Resource Management-Ninth Edition, New Delhi.
Internet:
1.http://www.southeastbank.com.bd
2. http://www.citybank.com.bd
3. http://www.dhakabank.com.bd
4. http://www.ificbank.com.bd
5. http://www.uttarebank.com.bd
6. http://www.sonalibank.com.bd
7. http://www.agranibank.com.bd