Internship Report 1

Chapter-1
INTRODUCTION
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1.1 ORIGIN OF THE REPORT
This report is originated as the course requirement of BBA program, Department of HRM of
Southeast University (SEU). As practical orientation is integral part of BBA program
requirement, I was sent to the Islami Bank Bangladesh Limited, At first I report to IBTRA
(Islami Bank Training and Research Academy) for internship training on Islamic Banking
System from October 16, 2016 to December 14, 2016, then they send me to take the real life
exposure of the activities of banking financial institutions at Mirpur Branch from October 30,
2016 to December 08, 2016. After that I submitted a report and presentation in IBTRA.
1.2 PROBLEM STATEMENT

The topic the researcher conducted the dissertation on is how effective performance appraisals
systems are according to the employees who are involved the appraisal. Whether an appraisal
system is effective or not may have either a positive or negative effect on the employees and the
organization. From the training the employees improves their effectiveness which enables them
working indifferent branches in different banking jobs. The training programs organized by
IBBL are alsotend to increase employee performance, so that the employees can serve the
organization welland serve the customers with zero complain. Performance appraisal plays an
important role in employee who develops motivation, potential, commitment and loyalty towards
organization
1.3 OBJECTIVE OF THE RESEARCH
Objective of the study acts as a bridge between the starting point and the goals of the study. To
illustrate the objectives properly, presented into two parts:
1. General objective of the report :
The general objective of the report is to complete the internship. As per requirement of
BBA program, a student need to work in a business organization for two months to
acquire practical knowledge about real business operations of a company.
2. Specific objective of the report :
To observe the Performance Appraisal system as an Islamic bank.
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To recommend solutions of or solving the problems faced by IBBL in operating as
an Islamic Bank.
1.4 SCOPE OF THE RESEARCH

The scope of this report is confined to Performance appraisal system in Islami Bank Bangladesh
Limited (IBBL).It should only covers how the bank manages Performance appraisal as well as
organizational structure, background, functions and the performance of the bank.
1.5 LIMITATIONS OF THE STUDY

I have faced some limitations during preparing report due to the confidentiality of documents and
resources of IBBL as mentioned below:
Time is the first limitation as the duration of the program is very few days only.
Lack of sophisticated Knowledge: As a student in research field, I have no experience in
data collection, processing, analyzing, interpreting and presenting.
I was not able to visit all branches of IBBL.
Lack of elaborate discussion with the high ranked officials due to their business.
The employees were always busy on there tremendous workload. So they couldnt extend
there co-operation properly.
Finally 2 month is too short to know about the whole Banking system.
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Chapter 2
LITERATURE REVIEW
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2.1 PERFORMANCE APPRAISAL
Performance Appraisal may be defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development.
A critical factor related to an organizations long-term success is its ability to measure how well
employees perform and then use that information to ensure that performance meets present
standards and improves over time. This process is referred to as performance appraisal or
performance evaluation. It can also be defined as the process by which an employees
contribution to the organization during a specified period of time is assessed. If used effectively,
it can improve employee motivation and performance.
Once the employee has been selected, trained and motivated, he is then appraised for his
performance. Performance Appraisal is the step where the Management finds out how effective it
has been at hiring and placing employees. If any problems are identified, steps are taken to
communicate with the employee and remedy them. Performance Appraisal is a process of
evaluating an employee performance in terms of its requirements. Performance Appraisal can
also be defined as the process of evaluating the performance and qualifications of the employees
in terms of the requirements of the job for which he is employed for purposes of administration
including placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among the members of a group as distinguished from actions
affecting all members equally. Performance appraisal is a formal system that evaluates the
quality of a workers performance.
An appraisal should not be viewed as an end in it self, but rather as an important process within
abroader performance management system that links:
Organizational objective
Day-to-day performance
Professional development
Rewards and incentives
2.2 HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century can
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betraced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resources management.
As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the time of the Second World War not more than 60 years ago. Yet in
broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it
might well lay claim to being the world's second oldest profession!
Appraisal system has been defined by Dulewicz (1989) as a basic human tendency to make
judgments about those one is working with as well as about oneself." Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of appraisal, people will
tend to judge the work performance of others, including subordinates, naturally, informally and
arbitrarily.
The eminent management expert, McGregor defined the performance appraisal system as the
formal performance appraisal plans are designed primarily to meet the organizational needs and
to provide systematic judgments.
Appraisal also tells the employees as to how they are doing and about the required changes in
their behavior, attitudes, skills or job knowledge, in other words, making the employees aware as
to where they stand in the eyes of superiors. These form the basis for the coaching and
counseling of employees by their bosses.
The human inclination to judge can create serious motivational, ethical and legal problems in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems
began as simple methods of income justification. That is, appraisal was used to decide whether or
not the salary or wage of an individual employee was justified. The process was firmly linked to
material outcomes. If an employee's performance was found to be less than ideal, a cut in pay
would follow. On the other hand, if their performance was better than the supervisor expected, a
pay rise was in order. Little consideration, if any, was given to the developmental possibilities of
appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an
employee to either improve or continue to perform well. Sometimes this basic system succeeded
in getting the results that were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different people with roughly equal
work abilities could be paid the same money and yet have quite different levels of motivation
and performance. These observations were confirmed in empirical studies. Pay rates were
important, yes; but they were not the only element that had an impact on employee performance.
It was found that other issues, such as morale and self-esteem, could also have a major
influence.As a result, the traditional emphasis on reward outcomes was progressively rejected. In
the 1950sin the United States, the potential usefulness of appraisal as tool for motivation and
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development was gradually recognized. The general model of performance appraisal, as it is
known today,began from that time.
In modern times Performance appraisal may be defined as a structure formal interaction

betweena subordinate and supervisor, that usually takes the form of a periodic interview (annual
or semi annual), in which the work performance of the subordinate is examined and discussed,
with aview to identifying weaknesses and strengths as well as opportunities for improvement and
skill development .In many organizations but not all appraisal result are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify
the better performing employees who should get the majority of available merit pay increases,
bonuses, and promotions (Goel, 2008).
2.3 360APPRAISAL
360 degree appraisal is an approach to performance appraisal that involves gathering
performance information from people on all sides of the manager above, beside, below and so
forth (De Nisi & Griffen, 2008). This approach allows management to 18 match the strengths
and weaknesses from each perspective and gain a more accurate, rounded view of a persons true
performance (Conway, 1996). Rees and Porter (2003, p.83) define 360 degree appraisal as
aprocess that involves the key people in a persons network of working relationships making
assessments of a persons performance. They subordinate being appraised is then given
structured feedback; this may involve feedback from subordinates and any key outside parties, if
it is practicable.
Some of the subordinates that may give feedback are the immediate manager, other management
in the organization, peers, internal and external customers and suppliers.
360 degree appraisal can be used to reduce the bias of the appraisal process by removing top
down ratings by managers. This is done by replacing them with a multisource assessment
(Grint,1993). However, Prowse and Prowse (2009, p.73) argued that a manager in 360-degree
appraisal collates feedback rather than judges performance and summarizes evaluations and so
the validity of upward appraisal means the removal of subjective appraisal ratings.
Using the 360 degree appraisal technique can mean there will be more negative feedback given,
and this is known to demotivate staff. It is therefore vital that the managers are using the
feedback received from the other raters wisely and ensure it is consistent and unbiased (De
Nisiand Griffen, 2007, Prowse and Prowse, 2009).
De Cenzo and Robbins (2007) feel that appraisers should only rate in those areas in where they
have substantial job knowledge. They should be as close as possible to the organizational level of
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the employee being evaluated. If the appraiser is not in 19 positions where they can observe the
persons work behavior then there is a greater chance of in accuracies.
2.4 IMPORTANCE AND PURPOSE

Performance Appraisal has been considered as the most significant an in dispensable tool for an
organization, for the information it provides is highly useful in making decisions regarding
various personnel aspects such as promotion and merit increase. Performance measures also link
information gathering and decision making processes which provide a basis for judging the
effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation.
Accurate information plays a vital role in the organization as a whole. They help in finding out
the weaknesses in the primary areas. Formal Performance Appraisal plans are designed to meet
three needs, one of the organization and the other two of the individual namely:
They provide systematic judgments to back up salary increases, transfers, Demotions or
terminations.
They are the means of telling a subordinate how he is doing and suggesting needed
changes in his behavior, attitudes, skills or job knowledge. They let him know where he
stands with the Boss.
Superior uses them as a base for coaching and counseling the individual. On the basis of
merit rating or appraisal procedures, the main objectives of Employee Appraisal are:
To enable an organization to maintain an inventory of the number and quality of all
managers and to identify and meet their training needs and aspirations.
To determine increment rewards and to provide reliable index for promotions and
transfers to positions of greater responsibility.
To suggest ways of improving the employee s performance when he is not found to be up
to the mark during the review period.
To identify training and development needs and to evaluate effectiveness of training and
development programmers.
To plan career development, human resource planning based potentials.
2.5 EFFECTIVE PERFORMANCE APPRAISAL

From reviewing the literature, there appears to be no one single best method of Performance
Appraisal, although there are certain common elements throughout all effective methods.
Effective performance appraisals are commonly associated with clear goals that are attached to
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specific performance criteria and are well-accepted by both appraiser and appraise (Mustapha &
Daud, p.158). All effective performance appraisals include elements such as linking appraisal to
rewards, the supervisor and employee working together to identify goals, performance goals
clearly defined, feedback given to the appraiser on their effectiveness and compliance with legal
requirements (Rankin & Kleiner, 1988).
2.6 FUNDAMENTALS OF AN APPRAISAL SYSTEM

In order to be effective, an appraisal system needs to be perceived by workers as:
Relevant and applicable to everyday work.
Acceptable and fair.
A mutual collaboration between management and workers.
A performance appraisal system that meets these criteria is likely to have the greatest impact on
workers satisfaction with the appraisal process and their motivation to improve performance.
2.7 APPRAISAL METHODS

In a landmark study, Performance appraisal system has been classified by Locher & Teel (1977).
He found that the three most common performance appraisal methods in general use are:
1. Rating scales (56%)
2. Essay method (25%) and
3. Result oriented or MBO methods (13%).
Certain technique in performance appraisal have been thoroughly investigated and some have
been found to yield better result than others.
Encourage Discussion
Research studies show that employees are likely to feel more satisfied with their appraisal result
if they have the chance to talk freely and discuss their performance. It is also more likely that
such employees will be matter able to meet future performance goals. Employees are also more
likely to feel that the appraisal process is fair if they are given a chance to talk about their
performance. This especially so when they are permitted to challenge and appeal against their
evaluation.
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Constructive Intention
It is very important that employees recognize that negative appraisal feedback is provided with a
constructive intention to help them overcome present difficulties and to improve their future
performance. Employees will be less anxious about criticism, and more likely to find it useful,
when the believes that the appraiser's intentions are helpful and constructive. In contrast , other
studies ( Baron 1988) have reported that destructive criticism which is vague , ill informed,
unfair or harshly presented - will lead to problems such as anger , resentment , tension and
workplace conflict , as well as increased resistance to improvement , denial of problems, and
poorer performance.
Set Performance Goals
It has been shown in numerous studies that goal-setting is an important element in employee
motivation. Goals can stimulate employee effort, focus attention, increase persistence, and
encourage employees to find new and better ways to work. The useful of goals as a stimulus to
human motivation is one of the best supported theories in management (Locher , 1977) .It is also
quite clear that goals which are specific , difficult and accepted by employees will lead to higher
level of performance than easy, vague goals (such as do your best ) or no goals at all
(Harris1914) .
Appraiser Credibility
It is important that the appraiser (usually the employee's supervisor) be well-informed and
credible. Appraisers should feel comfortable with the techniques of appraisal, and should be
knowledgeable about the employees job and performance (Teel,1977). When these condition
sexist, employees are more likely to view the appraisal process as accurate and fair. They also
express more acceptances of the appraisers feedback and a greater willingness to change.
2.8 PERFORMANCE APPRAISAL TECHNIQUES

There are many types of performance appraisal methods. Those are divided in two parts
Traditional Methods
Modern Methods
2.9 RATING SCALES
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The rating scale method offers a high degree of structure for appraisals. Each employee trait or
characteristic is rated on a bipolar scale that usually has several points ranging from "poor"
to"excellent" (or some similar arrangement). The traits assessed on these scales include
employee attributes such as cooperation, communications ability, initiative, punctuality and
technical (work skills) competence. The nature and scope of the traits selected for inclusion is
limited onlyby the imagination of the scales designer, or by the organizations need to know. The
one major provision in selecting traits that they should be in some way relevant to the appraisers
job.The traits selected by some organizations have been unwise and have resulted in legal action
onthe ground of discrimination (Torre, 1996).
2.10 ADVANTAGES
The greatest advantage of rating scales is that they are structured and standardized. This allows
ratings to be easily compared and contrasted - even for entire workforces.
Each employee is subjected to the same basic appraisal process and rating criteria, with the same
range of responses. This encourages equality in treatment for all appraise and imposes standard
measures of performance across all parts of the organization (David, 1993). Rating scale methods
are easy to use and understand. The concept of the rating scale makes obvious sense; both
appraiser and appraise have an intuitive appreciation for the simple and efficient logic of the
bipolar scale. This result is wide spread acceptance and popularity for this approach.
2.11 DISADVANTAGES
Trait Relevance
Are the selected rating-scale trait clearly relevant to the jobs of all appraises? It is inevitable that
with a standardized and fixed system of appraisal that certain traits will have a greater
relevancein some jobs than in others. For example, the trait "initiative" might not be very
important in ajob that is tightly defined and rigidly structured. In such cases, a low appraisal
rating for initiative may not mean that an employee lacks initiative. Rather, it may reflect that
fact that an employee has few opportunities to use and display that particular traits ( Mckellin,
1993) . This relevance of rating scales is therefore said to be context sensitive. Job and work
place circumstances must be taken into account.
Systemic Disadvantage
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Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the
relevant indicators of employee performance. There is an assumption that all the true and best
indicators of performance are included, and all false and irrelevant indicators are excluded
(Torre, 1996). This is an assumption very difficult to prove in practice. It is possible that an
employees performance may depend on factors that have not been included in the selected traits.
Such employees may end up with rating that do not truly or fairly reflect their effort or value
tothe organization. Employees in this class are systemically disadvantaged by the rating scale
method.
Perceptual Errors
This includes various well-known problems of selective perception (such as the horns and halos
effect) as well as problems of perceived meaning. Selective perception is the human tendency to
make private and highly subjective assessments of what a person is "really like and then seek
evidence to support that view (while ignoring or down playing evidence that might contradict it).
This is a common and normal psychological phenomenon (Torre, 1996). All human beings are
affected by it. In other words, we see in others what we want to see in them. An example is the
supervisor who believes that an employee is inherently good (halo effect) and so ignores
evidence that might suggest otherwise.
Instead of correcting the slackening employee, the supervisor covers for them and may even
offer excuses for their declining performance. On the other hand, a supervisor may have formed
the impression that an employee is bad (horns effect).
The supervisor becomes unreasonably harsh in their assessment of the employee, and always
ready to criticize and undermine those (Sanches, 1996). The horns and halo effect is rarely seenin
its extreme and obvious forms. But in its more subtle manifestation, it can be a significant threat
to the effectiveness and credibility of performance appraisal.
Perceived Meaning
Problems of perceived meaning occur when appraisers do not share the same opinion about the
meaning of the selected traits and the language used on the rating scales. For example, to one
appraiser, an employee may demonstrate the trait of initiative by reporting work problems to a
supervisor. To another appraiser, this might suggest an excessive dependence on supervisory
assistance - and thus a lack of initiative. As well, the language and terms used to construct a
scale as Performance exceeds expectations or below average Skill may mean different
things to different appraisers (De La Torre, 1996).
Rating Errors
The problem here is not so much errors in perception as errors in appraiser judgment and motive.
Unlike perceptual errors, these errors may be (at times deliberate. The most common rating
erroris central tendency. Busy appraisers, or those wary of confrontations and repercussions, may
betempted to dole out too many passive, middle-of-the-road ratings (e.g., "satisfactory"
or"adequate"), regardless of the actual performance of a subordinate. Thus the spread of ratings
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tends to clump excessively around the middle of the scale (Sanches, 1996). This problem is
worsened in organizations where the appraisers do not feel confident with the task of appraisal.
2.12 ESSAY METHOD

In the essay method approach, the appraiser prepares a written statement about the employee
being appraised. The statement usually concentrates on describing specific strengths and
weakness in job performance. It also suggests courses of action to remedy the identified problem
areas (Harry, 2007).The statement may be written and edited by the appraiser alone or it can be
composed in collaboration with the appraise.
2.13 RESULTS METHOD MANAGEMENT BY

OBJECTIVES (MBO)
It aims to increase organizational performance by aligning goals and subordinate objectives
throughout the organization. Ideally, employees get strong input to identify their objectives,
timelines for completion, etc. MBO includes ongoing tracking and feedback in the process to
reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954
in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the
significance of this organization management method, when he said: Its just another tool. Itis
not the great cure for management in efficiency Management by objectives work if you know the
objectives, 90% of the time you dont.
2.14 CORE CONCEPTS

According to Drucker managers should "avoid the activity trap", get so involved in their day
today activities that they forget their main purpose or objective? Instead of just a few top
management all managers should Participate in the strategic planning process, in order to
improve the implement ability of the plan and implement a range of performance systems,
designed to help the organization stay on the right track.
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2.15 MAIN PRINCIPLE
The principle behind Management by Objectives (MBO) is to make sure that everybody within
the organization has a clear understanding of the aims, or objectives, of that organization, as well
as awareness of their own roles and responsibilities in achieving those aims. The complete MBO
system is to get managers and empowered employee acting to implement and achieve their plans.
2.16 BENEFITS OF PERFORMANCE APPRAISALS

Performance appraisals can be used to:
Make employment decisions such as determining pay and promotions.
Identify professional development needs.
Identify factors in the work environment that help or hinder performance effectiveness.
2.17 MOTIVATION AND SATISFACTION

Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse. Performance appraisal provides employees with
recognition for their work efforts. The power of social recognition as an incentive has been long
noted. In fact, there is evidence that human beings will even prefer negative recognition in
preference to no recognition at all.
If nothing else, the existence of an appraisal program indicates to an employee that the
organization is genuinely interested in their individual performance and development (Dewakar,
2008). This alone can have a positive influence on the individual's sense of worth, commitment
and belonging.
The strength and prevalence of this natural human desire for individual recognition should not be
over looked. Absenteeism and turnover rates in some organizations might be greatly reduced if
more attention were paid to it. Regular performance appraisal, at least, is a good start.
2.18 EMPLOYEE EVALUATION

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Though often understated or even denied, evaluation is a legitimate and major objective of
performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source
oftension, since evaluation and development priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the performance
often individual (Goel, 2008). Though organizations have a clear right - some would say a duty
to conduct such evaluations of performance, many still recoil from the idea. To them the explicit
process of judgment can be dehumanizing and demoralizing and a source of anxiety and
distressto employees.It is been said by some that appraisal cannot serve the needs of evaluation
and development atthe same time; it must be one or the other. But there may be an acceptable
middle ground, where the need to evaluate employees objectively, and the need to encourage and
develop them, can be balanced.
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Chapter-3
Overview of the
Organization
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3.1 HISTORICAL BACKGROUND OF IBBL
The history of Islamic Banking could be dividing in two parts. First: When it still remained an
idea, second: When it become a reality by private initiative in some countries and by law in
others. There has always been a desire to establish financial institutions to operate as per the tents
of Islamic Shariah. The first attempt in this regard was made in Pakistan during 1950s as a pilot
scheme, but unfortunately it didnt succeed. It was followed by a more successful venture in the
form of a local Bank in Egypt (Myt Gant Savings Bank, July, 1963). In 1969 Islamic Bank was
got up Malaysia through passing an Act in parliament which is being conducted successfully
today. In 1970, King Faisal, The Government of K.S.A, called a meeting to moderate the
banking of Muslim countries in accordance with the loss of Islamic Shariah. In the light of this
purpose, on 18th December 1973 the decision of setting up an international Islamic Bank was
taken up in the finance ministry of O.I.C, which starts its work on 20th October 1975 in Jeddah.
In 1977, Faisal Islamic bank in Sudan, Kuwait Finance Bank House in Kuwait, Faisal Islamic
bank in Egypt and Jordan Islamic Bank in 1978 was founded. In 1977, International Association
of Islamic bank was founded to create equality among the Islamic Banks of different countries.
Islamic Bank Bangladesh Limited was incorporated on 13.03.1983 as a public Company with
Limited liability under the companies Act, 1913. The Bank obtained permission to commence
business from 27.03.1983. Islamic Bank Ltd. Is the first interest free Bank in South-East Asia.
The establishment of this Bank has ushered a new era in Bangladesh, the second largest Muslim
country in the world. The bank is committed to help the people in Halal earnings and Halal
investment. All of its activities are run as per Islamic Shariah. The Islamic Development Bank,
some foreign financial institutions of Saudi Arabia, Kuwait, Bahrain, United Arab Emirate and
Jordan also came forward to establish this bank.
The total number of branches of the bank as on 31st December 1988 stood at 27. The Bank has
taken up an optimality expansion program to open a large number of branches during the year
1989 in urban and rural areas and it is expected that with the implementation of the expansion
program almost all important commercial places will come under the operational activities of the
Bank.
3.2 GOOD PERFORMANCE IS ALWAYS

REWARDED
The global finance, a reputed USA based quarterly financial magazine, awarded IBBL
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as the best Islamic Financial Institution for the year 2008.
Institute of Cost and Management Accountants of Bangladesh (ICMAB) awarded
IBBL asthe ICMAB National Best Corporate Award 2007 (First Position, Local
Bank) and ICMAB Best Corporate Performance Award-2008 (Second Position,
Private Commercial Bank).
Credit Rating Information and Services Ltd. (CRISL) rated IBBL AA (High Safety)
for long term for the years 2006, 2007, and 2008 and ST-1 (Highest Grade) for short
term for the years 2004, 2005, 2006 , s2007, and 2008.
The Institute of Chartered Accountant of Bangladesh (ICAB) awarded IBBL with the
Certificate of Appreciation in the best published accounts and reports for the year
2001, and Certificate of Merit for the year 2008.
Bankers Forum awarded IBBL as the Best Bank for Corporate Social
Responsibilities for 2008.
3.3 MISSION, VISION, CORE VALUES &

COMMITMENTS OF IBBL
Mission of IBBL:
To establish Islamic Banking through the introduction of welfare oriented banking and also
ensure equity and justice in the field of all economic activities, achieve balanced growth and
equitable development through diversified investment operations particularly in the priority
sectors and less development areas of the country, To encourage social-economic enlistment and
financial services to the low-income community particularly in the rural area.
Islami Bank Bangladesh Limited has huge and vast mission and objective.
To conduct interest free banking.

Ensure equity and justice in the field of all economic activities.
To establish participatory banking instead of banking on debtor creditor relationship.
To establish a welfare-oriented banking system.
VISION OF IBBL:
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Vision of the organization is to always strive to achieve superior financial performance, be
considered a leading Islamic Bank by reputation and performance.
Islamic bank vision to always strive to achieve superior financial performance is considered a
leading Islamic bank reputation and performance. To establish and maintain the modern
banking technology, to ensure the soundness and development of the financial system based on
Islamic principles and to become the strong and efficient organization with highly motivated
professional, working for the benefit of people, based upon accountability, transparency and
integrity in order to ensure the stability of financial system.
CORE VALUES:
Trust in Almighty Allah.
Adherence to the spirit of Islamic Shariah.
Honesty & integrity.
Transparency & Accountability.
Welfare Driven.
Equity & Justice.
Environment Consciousness.
Customers Focus.
Respect for all.
Discipline & Co-operation.
COMMITMENTS:
To Shariah
To the Regulators
To the Shareholders
To the Community
To the Customers
To the Employees
To other stakeholders
To Environment
3.4 STRATEGIC OBJECTIVES OF IBBL
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Encourage welfare oriented banking.
Ensure customers satisfaction.
Be excellent in serving the cause of least developed community and area.
Achieve global standard.
Emerge as a healthier & strong Bank at the top of the banking sector.
Build and consolidate corporate culture.
Ensure Corporate Social Responsibilities (CSR) through all activities.
Promote green banking culture and ecological balance.
Provide impeccable and progressively better customer services using latest technologies
ensure diversification of investment by sector, size, economic purpose & geographical
location and expand need based Retail, SME and Micro financing.
Investment in the thrust and priority sectors of the economy
Establish a set of managerial succession and adapt technological changes to ensure
development of an Islamic bank as a stable financial institution.
Pay more importance in human resources as well as financial capital.
Strive hard to become a company of choice and nurture &develop talent in a performance
driven culture.
Ensure lucrative career path, attractive facilities and excellent working environment.
Motivate team members to take the ownership of every job.
Ensure zero tolerance on negligence in compliance with both Shariah and regulatory
guidelines.
3.5 FUNCTIONS OF IBBL

Islamic banks render almost similar services to their customers conventional banks do. However,
differences exist in administering incentives for deposits and charging for capital investments, in
so far as techniques of calculating the incentive or the cost of the capital is concerned. Like a
conventional bank, the Islami bank also accepts deposits from customers and advances
investment. The bank invests its funds for short as well as long term deposits. The Islami bank
also acts as a custodian of its customers and performs all foreign transactions on behalf of them.
The IBBL perform mainly three different types of functions Banking services, Investment, and
Foreign exchange services banking services comprise three regular types of operations related to
acceptance of deposits in the different Customers accounts as mentioned earlier, as well as,
different transactional services to the customers, safe keeping of personal valuables and
securities, collection of bills, agency services, etc. The bank lends its funds for the rapid growth
and development of industrial sectors and the promotion of trade and commerce in the country.
The bank also invests its funds in various socio-economic schemes such as, Rural Investment
Scheme, Small Traders Investment Scheme, Doctors Investment Scheme, Small Transport
Scheme, Small and Cottage Industry Project, Hawkers Investment Scheme, Household Durable
Scheme and Low Cost Housing Scheme. The third important function of the bank is to render
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services to customers regarding foreign exchange transactions plus services to its customers for
import and export of different industrial, commercial, agricultural and other items.
3.6 AT A GLANCE OF ISLAMI BANK

BANGLADESH LIMITED
Name Islami Bank Bangladesh Limited
Date of incorporation March 13, 1983
Date of inauguration of operation March 30, 1983
40, Dilkusha Commercial Area

Dhaka-1000, Bangladesh
GPO Box No.23
Registered Office Phone : PABX (88-02-) 9563040,
9560099, 9567161, 9567162
Mobile : 88-01711-435638-9
FAX : 88-02-9564532, 9568634
Name of the Chairman of the Board Engr. Mustafa Anwar
Name of the managing Director Mohammad Abdul Mannan
Number of branches 318
NRB Services, SME Services,

Services provided Foreign Exchange Business Service,
Locker Service, Offshore Banking
Service
Banking services, ATM services,
Diversification of Product And Internet Banking, Payment Gateway,
Services Mobile Banking, Consumer Banking
Corporate Banking, Investment
Banking
Paid up capital Tk.10,007.71 million
Profit after tax & provision 1,258.450(Million)
Credit Card Member of Visa Card
Interest free banking, Investment
Banking operation system mechanism & Foreign exchange
system
Technology used Member of SWIFT, online banking,
UNIX based computer system
Market value per share 12764
Earnings per share 1208
21 | P a g e
E-mail info@islamibankbd.com
Web-site www.islamibankbd.com
SWIFT IBBLBDDH
3.7 STRATEGIES OF IBBL

The strategies on which IBBL is working are as follows:
Broad-based economic well-being with full employment and optimum rate of economic
growth.
Socio-economic justice and equitable distribution of income and wealth.
Stability in the value of money to enable the medium of exchange to be reliable unit of
account, a just standard of deferred payments and a stable store of value.
Generation of adequate savings and their productive mobilization within a framework
which is consistent with the above goals.
Effective rendering of all services normally expected from the banking system.
3.8 THE BOARD OF DIRECTORS
The Board of Directors consists of 14 non-executive members including 1 Independent Director.

The number of Board of members is within the maximum limit set by the central bank. The
Board is composed of experienced members with diverse professional experiences such as
business, administration, banking & finance, accounting, general management, diplomacy,
government services, engineering and fund management which made the Board very efficient
and balanced in deciding and directing on the various issues of the bank. The Board members are
independent who express their views and opinions free from any influence. The Directors are
also independent from management, business/other relationship of the bank that could materially
interfere the activities of the bank. There is also a clear demarcation of duties and
responsibilities between the Board and management. While the Board is responsible for
formulating the board policy framework within which the bank is operating, the management is
accountable for the execution of the policies and attainment of the banks objectives. The Board
exercises independent oversight on the affairs of management.
22 | P a g e
3.9 THE ORGANIZATIONAL STRUCTURE
3.10 COMMITTEES
The Board has two standing committees viz. Executive Committee and Audit Committee. These
Committees operate within clear terms of reference.
3.10.1 The Executive Committee:

The executive Committee consists of 6 members and entrusted with the task of policy making
and taking important and strategic decisions as authorized by the Board within the norms set by
the Bangladesh Bank.
23 | P a g e
3.10.2 The Audit Committee:
The Audit Committee formed by the Board of Directors as per instruction of Bangladesh Bank
consists of 3 members and is entrusted with, among others, the task of exercising their duties &
responsibilities with regard to:
Internal Control
Disclosure of Financial Report
Internal Audit
External Audit and
Compliance of existing laws and regulations
3.10.3 The Management Committee:

The Management Committee of the bank comprises of 17 top level executives, headed by the
Managing Director (CEO) of the bank. The Committee with financial, administrative and
business discretionary power delegated by the Board is mainly responsible for implementation of
the policies and guidelines approved by the Board. The Management Committee thoroughly
scrutinizes the issues before placing to the Executive Committee/Board. The Management
Committee thoroughly evaluates the performance of the bank, takes strategic action plan to
achieve various targets of the bank set by the Board of Directors.
3.10.4 Asset-Liability Committee (ALCO):

The asset liability management (ALCO) of IBBL is comprised of 18 members from the top
management which meets once in a month to review the liquidity position of the bank, maturity
grouping of assets and liabilities, Deposits and Investment pricing and liquidity contingency plan
in order to manage the balance sheet risk in a better way. The ALCO is entrusted with the
responsibility of ensuring the banks sufficient liquidity at all times to meet its obligations when
becomes due without compromising the earning potential of the bank. In every ALCO meeting,
the Committee reviews actions taken in previous ALCO meeting, economic and market status
and outlook, liquidity risk related to balance sheet, profit rate structure etc. Special ALCO
meeting is arranged as and when any contingent situation arises.
3.11 SHARIAH COUNCIL
24 | P a g e
The Shariah Council of the bank plays a very important role in framing and exerting policy for
strict adherence to Shariah Principles in the bank. The council is represented by 14 members
consisting of prominent Ulama having adequate knowledge in Fiqhul Moamalat, renowned
lawyers and eminent economists to advise and guide on the implementation and compliance of
Shariah principles in all activities of the bank particularly on the modes of investment. The
representative of the Council attends in the meetings of the board of Directors, Executive
Committee, Audit Committee and other relevant committees and Annual Development
Conferences too give opinions and oversee the activities of the bank from the view point of
Shariah. At present two members of the Council are also the members of Academic Council of
IBTRA. The Council also evaluates the performance of the officials in terms of Shariah
compliance.
3.12 BRANCHES
Till 2015, out of total 318 branches (including 20 SME/Agricultural Branches), 158 are Urban
Branches and 160 are Rural Branches which are the highest number of rural branches among the
first generation Commercial Banks.
Chart-3.1 Number of Branches & SME/ Agricultural Branches
Number of Branches & SME/Agricultural Branches
2004 2005 2006 2007 2008 2009

Number of Branches & SME/Agricultural Branches
From above discussion we can say that 2010 was 151 Branch but still now 2015has 318 branch.
158 are Urban Branches and 160 are Rural Branches has in our country.
25 | P a g e
3.13 PRODUCTS AND SERVICES
Local currency Deposit Accounts
1. Al-Wadeeah Current Account

2. Mudaraba Savings Account
3. Mudaraba Term Deposit Account
4. Mudaraba Special Notice Account
5. Mudaraba Special Savings (Pension) Account
6. Mudaraba Hajj Savings Account
7. Mudaraba Savings Bond
8. Mudaraba Waqf Cash Deposit Account
9. Mudaraba Monthly Profit Deposit Account
10. Mudaraba Muhar Savings Deposit Account
Foreign Curreny Deposit Accounts
1. Mudaraba Foreign Currency Deposit

2. Foreign Currency Deposit (USD,EURO,GPB)
3. FC Deposit ERQ
Investment Modes
1. Bai-Muajjal
2. Bai-Murabaha
3. Hire Purchase under Shirkatul Melk
4. Mudarabah
5. Musharaka
6. Musharaka Documentary Bills (MDB)
7. Bai-Salam
8. Bai-As-Sarf
Welfare Oriented Special Investment Schemes
1. Household Durables Scheme

2. Housing Investment Scheme
3. Real Estate Investment Scheme
4. Transport Investment Scheme
5. Car Investment Scheme
6. Investment Scheme for Doctors
7. Small Business Investment Scheme
8. Agriculture Implements Investment Scheme
9. Rural Development Scheme
26 | P a g e
10. Micro Industries Investment Scheme
11. Women Entrepreneurs Investment Scheme
12. Mirpur Silk Weavers Investment Scheme
13. Equity and Entrepreneurship Fund of Bangladesh Bank
Sectors under SME Investments
1. Manufacturing
2. Trading
3. Service
ATM Services
1. Cash Withdrawal
2. Fund Transfer
3. Mini Statement of Accounts
4. Balance Enquiry
5. Payment of Utility Bills (Electricity, Water, Phone and Gas etc.)
Other Banking Value Added Services
1. The Bank issues Payment Orders

2. The Bank co-operates to remit money from one place to another on the basis of
commission within the country through Demand Draft (DD) and Telegraphic Transfer
(TT).
3. ATM Service has been introduced in selected Branches
4. Locker Service is available in selected Branches to preserve valuable documents and
materials
5. The Bank gives counseling on different issues
6. Online Banking
7. SMS Banking
8. SWIFT
9. REUTER, etc.
Foreign Remittance
There are 16 (sixteen) Foreign Representatives of IBBL in 5 (five) Countries to serve expatriate
customers to encourage and enhance Foreign Remittance.
Treasury Activities
Dealing Room Operation.
Special Services through Islami Bank Foundation
27 | P a g e
1. Islami Bank Hospital
2. Islami Bank Medical College
3. Islami Bank Community Hospital
4. Islami Bank Nursing Training Institute
5. Islami Bank Institute of Health Technology
6. Islami Bank Homeopathic Clinic
7. Monorom Islami Bank Crafts & Fashion
8. Islami Bank Service Centre
9. Islami Bank Institute of Technology
10. Islami Bank International School and College
11. Islami Bank Model School
12. Islami Bank Mohila Madrasah
13. Bangladesh Sangskritic Kendra
14. Distressed Women Rehabilitation Centre
Training Services
1. International: Training to Foreigners on Islamic Banking

2. National: Training to others on Islamic Banking
3. Islami Banking Deploma
4. Islami bank training & research academy (IBTRA)
28 | P a g e
Chapter-4
Research and methodology
29 | P a g e
4.1 RESEARCH DESIGN
The purpose of this study is to Effectiveness of Performance Appraisal System of Islami Bank
Bangladesh Limited, Mirpur branch. To perform the study data, sources were identified. At first
Iselected the topic than make questionnaire and did a survey on employ of IBBL Mirpur branch.
4.2 METHODOLOGY OF THE RESEARCH

In the preparation of this report, data has been collected from both primary and secondary
sources. In-depth interviews of some of the employees of the HR Division and branchs
employee of IBBL have been conducted to gather necessary information. Also, the Effectiveness
of Performance Appraisal System of IBBL has been consulted in preparing this report. Moreover,
text books, the internet, the annual report of IBBL etc. have been used to collect information.
4.3 POPULATION AND SAMPLE

Number of respondents: 20 employees working at Islami Bank Bangladesh Limited, Mirpur
branch,18 of them are Male and 02 are female. Questionnaires were used to survey employee
feedback on the Islami Bank Bangladesh Limited, Mirpur branch.
4.4 THE RESEARCH INSTRUMENT

The researcher designs a self-administered questionnaire for the data gathering process to get
qualitative and quantitative data. The primary aim of the questionnaire is to determine the
strategy. This research will use a mixture of closed questions and more open comments in the
questionnaire. A closed question is one that has pre-coded answers. The simplest is the
dichotomous question to which the respondent must answer yes or no. Through closed questions,
the researcher will be able to limit responses that are within the scope of this study. Thus, the set
of questionnaire was structured using the Liker format with a five-point responsescale. A Liker
Scale is a rating scale that requires the subject to indicate his or her degree of agreement or
disagreement to a statement. In this type of questionnaire, the respondents were given five
response choices. These options served as the quantification of the participants agreement or
30 | P a g e
disagreement on each question item. Below are the designated quantifications used in the
questionnaire?
1 Strongly Disagree
2 Disagree
3 Moderate
4 Agree
5 Strongly Agree
4.5 DATA COLLECTION

For achieving the objectives of this study, data were gathered form both primary and secondary
sources.
Primary sources:
Direct conversation with the respective officers of the Departments.
Face to face conversation with the employees.
Employees opinion collected through Questions.
Observation of the HR activities.
Questionnaire consisted of 20 questions, included statements those responses were asked
on 5 point liker type scale. Respondent had to just encircle the appropriate choice.
Where 1=Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree
Secondary Sources:
Various records of the bank.
Different Types of brochures.
Website of Islami Bank Bangladesh Limited
Different newsletters of Islami Bank Bangladesh Limited
4.6 DATA ANALYSIS

The ability to analyze data is a powerful skill that helps you make better decisions. Microsoft
Excel is one of the top tools for data analysis and the built-in pivot tables are arguably the most
popular analytic tool I have used for data analysis by MS word and MS Excel. This software
helps me to find out the right data and result.
31 | P a g e
Chapter-5
Results and Findings
32 | P a g e
5.1 RESULTS OF DATA ANALYSIS
Question:
1. Performance Appraisal system is needed in every organization.
Table: 1
Response Number of Respondent Percentage

Strongly Disagree 0 0%
Disagree 0 0%
Moderate 0 0%
Agree 9 45%
Strongly Agree 11 55%
Total sample 20 100%
Performance Appraisal system is needed in every organization
Strongly Agree
Agree
45%
55% Moderate
Disagree
Strongly Disagree
Figure: 1
From the table above and graph charts above point out those 20 respondent representing 0% of
the management and staff said that they feel moderate about of the work, they have no objection.
45% agreed, 55% strongly agree and 0% did not agree, no one has strongly disagreed. Most of
the employee thinks that appraisal process is not bad or not good. Most of the person is agreed
about the performance.
33 | P a g e
2. Satisfied with the existing performance appraisal system in your
organization.
Table: 2

Disagree 0 0%
Moderate 0 0%
Agree 9 45%
Satisfied with the existing performance appraisal system in your organization
Strongly Agree
Agree
45%
55% Moderate
Disagree
strongly Disagree
Figure: 2
34 | P a g e
3. The performance of the organization is assessed by self, superior or
consultant.
Table: 3

Disagree 0 0%
Moderate 0 0%
Agree 13 65%
The performance of the organization is assessed by self, superior or consultant
Strongly Agree
35% Agree
moderate
65% Disagree
Strongly Disagree
Figure: 3
35 | P a g e
4. The performance appraisal helps to win co-operation & team work.
Table: 4

Disagree 0 0%
Moderate 0 0%
Agree 16 80%
The performance appraisal helps to win co-operation & team work
20% Strongly disagree

Disagree
Moderate
Agree
80% Strongly agree
Figure: 4
36 | P a g e
5. The performance appraisal is helpful in reducing grievance among the
employees.
Table: 5

Disagree 0 0%
Moderate 0 0%
Agree 11 55%
The performance appraisal is helpful in reducing grievance among the employees
Strongly disagree
Disagree
45%
55% Moderate
Agree
Stongly Agree
Figure: 5
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6. The performance appraisal is helpful for improving personnel skill.
Table: 6

Disagree 0 0%
Moderate 0 0%
Agree 15 75%
The performance appraisal is helpful for improving personnel skill
strongly disagree
Disagree
Moderate
agree
Strongly agree
Figure: 6
38 | P a g e
7. Training programmers are effective for individual & organization
development.
Table: 7

Disagree 0 0%
Moderate 01 5%
Agree 13 65%
Training programme rs are effe ctive for individual & organization deve lopme nt
Strongly Disagree Disagree Moderate Agree strongly Agree
Figure: 7
39 | P a g e
8. The performance ratings were done periodically.
Table: 8

Disagree 0 0%
Moderate 01 5%
Agree 12 60%
The pe rformance ratings we re done pe riodically
5% Strongly Disagree
35% Disagree
Moderate
60% Agree
Strongly Agree
Figure: 8
40 | P a g e
9. The performance appraisal system helps to identify the strength &
weakness of the employee.
Table: 9

Disagree 0 0%
Moderate 01 5%
Agree 13 65%
The pe rformance appraisal syste m he lps to ide ntify the stre ngth & we akne ss of the e mploye e
5%
30%
Strongly Disagree Disagree Moderate Agree Strongly Agree
65%
Figure: 9
41 | P a g e
10. The performance rating is helpful for the management to provide
employee counseling.
Table: 10

Disagree 0 0%
Moderate 0 0%
Agree 12 60%
The pe rformance rating is he lpful for the manage me nt to provide e mploye e counse ling
40%
strongly Disagree Disagree Moderate Agree Strongly Agree
60%
Figure: 10
42 | P a g e
11. Promotion is purely based on performance appraisal.
Table: 11

Disagree 0 0%
Moderate 0 0%
Agree 15 75%
Promotion is purely based on performance appraisal
Strongly Disagree
25%
Disagree
Moderate
Agree
75%
Strongly Agree
Figure: 11
12. Management fixes salary through the performance rating.
43 | P a g e
Table: 12

Disagree 0 0%
Moderate 01 5%
Agree 12 60%
Management fixes salary through the performance rating
5%
Strongly Disagree
35%
Disagree
Moderate
60% Agree
Strongly Agree
Figure: 12
13. Performance rating helps to fix increment.
44 | P a g e
Table: 13

Disagree 0 0%
Moderate 0 0%
Agree 13 65%
Performance rating helps to fix increment
Strongly Disagree
35% Disagree
Moderate
65% Agree
Strongly Agree
Figure: 13
14. Transfer, demotion, suspension & dismissal is based on performance

appraisal.
45 | P a g e
Table: 14

Disagree 0 0%
Moderate 01 5%
Agree 12 60%
Transfer, demotion, suspension & dismissal is based on performance appraisal
35% Disagree
Moderate
60% Agree
Strongly Agree
Figure: 14
15. The desired target of the organization is achieved through the

performance appraisal.
46 | P a g e
Table: 15

Disagree 0 0%
Moderate 02 10%
Agree 13 65%
The desired target of the organization is achieved through the performance appraisal
10%
Disagree
Moderate
Agree
65% Strongly Agree
Figure: 15
16. Performance appraisal increases employee motivation.
47 | P a g e
Table: 16

Disagree 0 0%
Moderate 03 15%
Agree 10 50%
Performance appraisal increases employee motivation

35%
Disagree
Moderate
Agree
50% Strongly Agree
Figure: 16
17. Appraisal system keeps on the major achievement & failure or success of
work.
48 | P a g e
Table: 17

Disagree 0 0%
Moderate 04 20%
Agree 10 50%
Appraisal system keeps on the major achievement & failure or success of work

30%
Disagree
Moderate
Agree
50% Strongly Agree
Figure: 17
18. Have a separate committee to review the performance appraisal result.
Table: 18
49 | P a g e
Disagree 0 0%
Moderate 0 0%
Agree 15 75%
Have a separate committee to review the performance appraisal result

Disagree
Moderate
agree
75%
Strongly agree
Figure: 18
19. Company offers you different recreational tools to improve performance.
Table: 19
50 | P a g e
Disagree 0 0%
Moderate 03 15%
Agree 10 50%
Company offers you different recreational tools to improve performance
15%
Strongly Disagree
35%
Disagree
Moderate
Agree
Figure: 19
20. Employees have a voice in major decisions regarding changes in the work
environment.
Table: 20
51 | P a g e
Disagree 0 0%
Moderate 04 20%
Agree 10 50%
Employees have a voice in major decisions regarding changes in the work environment

30%
Disagree
Moderate
Agree
50% Strongly agree
Figure: 20
5.2 FINDINGS
After my own work experiences as well as discussion with honorable officers I have found in my
52 | P a g e
study that there are several important problems that need to focus on for better performance
appraisal procedures of IBBL. The findings of my study are:-
Its difficult to understand performance appraisal system for some of the employees.
The appraisal system facilitates growth & learning of employees and it moderately
distinguishes performers and non-performers in the organization.
Existing performance appraisal system helps the management to identify potentiality of
the employees.
The performance appraisal system criteria are well communicated with all stakeholders
related with performance appraisal system.
Lack of knowledge about performance appraisal system for lower level employees
No training facilities for ground level employees.
Its difficult to understand performance appraisal system for some of the employees.
Current performance appraisal system practicing in IBBL is complex and complicated
towards many employees.
Modification and clarification of different areas like monetary incentives,standard of
evaluation and a clear appraising procedure is required.
Miss match between employees expectation and current performance appraisal system
practicing in IBBL.
Confusing and conflicting aspect of performance appraisal system creating
miscommunication among management level to various levels of employees.
Majority of the employees are not significantly satisfying about the current performance
appraisal system.
Employees perception about performance appraisal system is very positive in IBBL.
53 | P a g e
Chapter-6
Recommendations and
Conclusions
54 | P a g e
6.1 RECOMMENDATIONS
Though Islami Bank Bangladesh Ltd. (IBBL) is performing well but it has some
crucial areas to improve which are prescribed below:
It is a modern banking era. Each and every commercial bank is properly utilizing technological
innovations. So, IBBL needs to utilize these modern technologies to keep pace with the modern
time. IBBL needs to recruit skilled human resources which can turn the bank ahead. The bank
should offer facilities such as Credit card, Visa card. IBBLs investment processing should
become easier than other conventional banks. IBBL should make its investment schemes more
attractive for availing high-return projects.
Following suggestions are prepared for IBBL:

Appraising method should be unbiased and real performer should be appreciated based
on his or her performance evaluation.
Evening banking allowance may be increased.
New performance appraisal such as 360 degree should be introduced.
Training facilities should be given to all level of employees.
Evaluation result should be disclosed to all the employees.
Promotion should be based on performance rather than seniority or other.
The aims and Objectives of performance appraisal need to be well communicated from
top level to bottom level management.
An unbiased and clear appraising method should practice so that only actual performer
could be rewarded.
Monetary incentive should be improve.
A well and friendly corporate atmosphere should create among HRD and various
department of the organization so that confliction and complexity about appraising
procedure could be reduced and minimized.
55 | P a g e
6.2 CONCLUSIONS
IBBL is trying to develop banking sector through welfare and servicing to the people. Islami
economy and banking are bound together. IBBL has emerged facing the many obstacles yet. This
bank is trying to operate their activities according to Islami Shariah. Islam is a religion for
human welfare as well the social welfare. All the steps of Islam are only for the welfare for
human being.
Interest free banking system is no more a concept. It is now a Reality, a dynamic system,
embodying a set of superior banking mechanism. More than 300 Islamic bank and financial
institutions are operating in different Countries throughout the world with a marked success from
this inception in our country in 1983. IBBL has been operating with real and confidence in
corporation with other conventional banks. Bringing a new concept in such business sector,
which is growing too rapidly in the world, is rally bold step. As a large Islamic commercial bank,
Islamic bank took various steps to create employment and socio-economic development for the
poor through Islamic Shariah as well as to create an overall climate for the introduction of large
scale Islamic banking environment in Bangladesh.
IBBL is trying to develop innovative and technologically advanced products and services that
satisfy their customer needs.
There are many benefits to implementing a regular and systematic performance appraisal system
within an organization. In order to gain the most benefit from performance appraisals it is
recommended that a system is developed in consultation with workers and managers, and clear
links are established between appraisals and valued rewards and outcomes. If resources permit,
information on work performance should be obtained from multiple sources. Performance
appraisals can be a powerful tool for increasing motivation and improving work practice if
conducted in a constructive, open and supportive manner.
To conclude we must say that, Islami bank Bangladesh Limited (IBBL) has immense potential in
Bangladesh. It can play vital role in bringing revolutionary changes in our life with both material
and moral world and in individual and collective level.
56 | P a g e
Chapter-7
References and Appendix
57 | P a g e
7.1 REFERENCES
Reference Book:
Baron, R.A. (1988)
Negative effects of destructive criticism: impact on conflict, self-efficacy, and task performance,
Journal of Applied Psychology, Vol 73, pp199-207.
Bannister, B.D. & Balkin, D.B. (1990)
Performance evaluation and compensation feedback messages: an integrated model, Journal of
Occupational Psychology, Vol 63, June, British Psychological Society.
Heneman, R.L., Greenberger, D.B. & Anonyou C., (1989)
Attributions and exchanges: the effects of inter personal factors on the diagnosis of employee
performance, Academy of Management Review, Vol 32, No 2.
Larson, J.R. (1989)
The dynamic interplay between employees feedback seeking strategies and supervisors delivery
of performance feedback, Academy of Management Review, Vol 14, No 3.
Cash, M. (1993)
Collins, R. (1993) (Ed.), Effective Management, CCH International, Sydney Harris, D.M. &De
Simone, R.L. (1994) Human Resource Development, Dryden Press, Forth Worth.
Bernardin, H. J., Kane, J. S., Ross, S., Spina, J. D., and Johnson, D. L. (1996)
"Performance Appraisal Design, Development, and Implementation." In Handbook of Human
Resource Management, Gerald R. Ferris, Sherman D. Rosen, and Darold T. Barnum
ed.,Cambridge, Mass: Blackwell, pp462-493.
Websites:
http://www.islamibankbd.com
www.bangladesh-bank.org
www.performanceappraisalprocess.com
http://www.humanresources.hrvinet.com
Other References
Annual report of IBBL in 2015 & 2016
58 | P a g e
7.2 APPENDIX
Questionnaire for assessment of performance appraisal system
Personal Information
Name:
Organization:
Designation:
Age: Below 25 25-35 35-40 40-45 More than 45
Gender: Male Female
Marital status: Single Married
How long have you been working for this organization:
Less than 3 years 3 5 Years More than 5 years
Educational level attained: SSC HSC Honors Master
59 | P a g e
S.L Strongly Disagree Moderat Agree Strongly
Criteria Disagree (2) e (4) Agree
(1) (3) (5)
1. Performance appraisal system is needed in every
organization.
2. Satisfied with the existing performance appraisal
system in your organization.
3. The performance of the organization is assessed
by self, superior or consultant.
4. The performance appraisal helps to win co-
operation and team work.
5. The performance appraisal is helpful in reducing
grievance among the employees.
6. The performance appraisal is helpful for
improving personnel skill.
7. Training programmers are effective for
individual and organization development.
8. The performance ratings were done periodically.
9. The performance appraisal system helps to
identify the strength and weakness of the
employee.
10 The performance rating is helpful for the
. management to provide employee counseling.
11. Promotion is purely based on performance
appraisal.
12 Management fixes salary through the
. performance rating.
13 Performance rating helps to fix increment.
.
14 Transfer, demotion, suspension and dismissal
. isbased on performance appraisal.
15 The desired target of the organization is
. achieved through the performance appraisal.
16 Performance appraisal increases employee
. motivation.
17 Appraisal system keeps on the major
. achievement and failure or success of work.
18 Have a separate committee to review the
. performance appraisal result.
19 Company offers you different recreational tools
. to improve performance.
20 Employees have a voice in major decisions
. regarding changes in the work environment.
60 | P a g e
Please show the extent to which you believe The Islami Bank Bangladesh Limited (IBBL)
has the feature described in the statement. Please put () mark.
61 | P a g e

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Chapter-1

1.2 PROBLEM STATEMENT

1.3 OBJECTIVE OF THE RESEARCH

1.4 SCOPE OF THE RESEARCH

1.5 LIMITATIONS OF THE STUDY

2.2 HISTORY OF PERFORMANCE APPRAISAL

In modern times Performance appraisal may be defined as a structure formal interaction

2.4 IMPORTANCE AND PURPOSE

2.5 EFFECTIVE PERFORMANCE APPRAISAL

2.6 FUNDAMENTALS OF AN APPRAISAL SYSTEM

2.7 APPRAISAL METHODS

2.8 PERFORMANCE APPRAISAL TECHNIQUES

2.9 RATING SCALES

2.12 ESSAY METHOD

2.13 RESULTS METHOD MANAGEMENT BY

2.14 CORE CONCEPTS

2.16 BENEFITS OF PERFORMANCE APPRAISALS

2.17 MOTIVATION AND SATISFACTION

2.18 EMPLOYEE EVALUATION

3.2 GOOD PERFORMANCE IS ALWAYS

3.3 MISSION, VISION, CORE VALUES &

To conduct interest free banking.

3.4 STRATEGIC OBJECTIVES OF IBBL

3.5 FUNCTIONS OF IBBL

3.6 AT A GLANCE OF ISLAMI BANK

40, Dilkusha Commercial Area

NRB Services, SME Services,

3.7 STRATEGIES OF IBBL

3.8 THE BOARD OF DIRECTORS

The Board of Directors consists of 14 non-executive members including 1 Independent Director.

3.10.1 The Executive Committee:

3.10.3 The Management Committee:

3.10.4 Asset-Liability Committee (ALCO):

3.11 SHARIAH COUNCIL

Chart-3.1 Number of Branches & SME/ Agricultural Branches

Number of Branches & SME/Agricultural Branches

2004 2005 2006 2007 2008 2009

1. Al-Wadeeah Current Account

Foreign Curreny Deposit Accounts

1. Mudaraba Foreign Currency Deposit

Welfare Oriented Special Investment Schemes

1. Household Durables Scheme

Sectors under SME Investments

Other Banking Value Added Services

1. The Bank issues Payment Orders

Dealing Room Operation.

Special Services through Islami Bank Foundation

1. International: Training to Foreigners on Islamic Banking

4.2 METHODOLOGY OF THE RESEARCH

4.3 POPULATION AND SAMPLE

4.4 THE RESEARCH INSTRUMENT

4.5 DATA COLLECTION

Where 1=Strongly Disagree, 2= Disagree, 3= Moderate, 4= Agree, 5= Strongly Agree

4.6 DATA ANALYSIS

1. Performance Appraisal system is needed in every organization.

Response Number of Respondent Percentage

Performance Appraisal system is needed in every organization

Response Number of Respondent Percentage

Satisfied with the existing performance appraisal system in your organization

Response Number of Respondent Percentage

The performance of the organization is assessed by self, superior or consultant

Response Number of Respondent Percentage

The performance appraisal helps to win co-operation & team work

20% Strongly disagree