CHAPTER 1 INTRODUCTION

1.1 Background of the report

Banking system occupies an important place in a nations economy. A banking institution is indispensable in a modern society. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. In recent times the banking sector over the world has been undergoing a lot of changes due to deregulation, technological innovation, globalization etc. Bangladesh banking sector is lagging for behind in adopting these changes. Dhaka Bank Limited (DBL) was incorporated as a Public Limited Company on April 06, 1995 under the Company Act 1994 and started its Commercial Operation on June 05, 1995 as Private Commercial Bank. The Bank started its journey with an Authorized Capital of Tk.1000.00 Million and Paid up Capital of Tk.100.00 Million. Today it is one of the most renowned Private Commercial Banks having multiple branches in the major cities of the Country. Dhaka Bank Limited (DBL) has started its Business with all the features of a Corporate Bank and the Products of both Corporate and Retail Banking System; to facilitate the all types of loan facilities and to provide the Foreign Trade to their honorable client. DBL is always trying to improve their Banking System in every sector, but in todays Competitive Business World, Banks need to offer additional concentration to the Clients requirements in order to stay at the top. Therefore, besides dealing with the general attributes of Different Products, they have been trying to put more emphasis on the Customer Benefits and other Customer related Facilities.

1.2 Origin of the report:

Internship means to have practical training and experience of advanced student in the level of business field. For the fulfillment of earned theoretical knowledge, practical knowledge is very important. The main objective of BBA program is to develop smart executives. All courses of BBA program is practical oriented. So it is necessary to know the practical application of the theoretical knowledge, otherwise the objective will be worthless. The degree does not complete until a written report submitted to the faculty, 2

basing on what have the students learned through the internship program. Being a student of BBA (with major in Human Resource Management) in Stamford University Bangladesh, I had the opportunity to work at the Dhaka Bank Limited from February 1 to April 30.

1.3 Objectives of the report:

The main objective of the study is to gather knowledge about the banking activities and evaluate the scenario of the Dhaka Bank Limited. To achieve these main objectives, the study seeks to realize the following: To know Human Resources Planning practices of the bank. To learn about recruiting and selecting procedure of the bank. To identify training and development methods applied in the bank. To know performance management practices and compensation practices in the bank. To have a clear view about what is actually happening in the area of Human Resource Management of the selected bank. To get the real life experience in the banking sector and by doing that I want to expand the span of my practical knowledge. To build up the pillar for my career in near future. To know more about the current situation of the bank. To fulfill the requirement for the completion of BBA graduation.

1.4 Scope of the report

This report is some sort of case study. So the scopes of this report are limited. The first scope of this report is to have practical experience about how a research is done in the bank. The report has the scope to cover different aspects of Human Resource Management, which include Human Resource Planning, recruitment and selection procedures, selection devices, job analysis, job design, training and development, and

salary and compensation administration. We discuss only one organization throughout this report, that is, the Dhaka bank ltd.

1.5 Methodology:
The information I used to prepare this report has been collected from practical knowledge, direct conversation with officers, by observation of unit activities, annual report of DBL, job description of each employee of the unit, DBLs website and other various websites.

1.5.1 Primary data:

Interviewing employees and manager of Dhaka bank has collected primary data. A questionnaire survey had done to minimize interruption of the human resources banking activities.

1.5.2 Secondary data:

Secondary sources that have used in the study will include:

1.5.3 Internal Sources

o o o Bank's Annual Report Prior research report Any information regarding the human resources management sector

1.5.4 External Sources

Different books and periodicals related to the human resources management sector. Bangladesh Bank Report Newspapers

1.6 Limitations of the Study

The officers are very co-operative but they are too busy to give me time to get knowledge about practical activities. Moreover they have to deal in a very competitive environment based on money related activities. I have to prepare this report alone. Every task has some limitations. I faced some usual constraints during the course of my internship. These are as follows:

Short of time:
I had to complete this report writing within a shorter period of time. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.

Busy working environment:

The officials had some times been unable to provide information because of their huge routine work.

Lack of sufficient well informed officials:

Many officials of the branch are not well informed about different systems of Dhaka bank. They know but less. I had to face much difficulty to collect this information.

Insufficient data:
Some desired information could not be collected due to confidentially of business This report did not cover all the function of Human resources that followed in Dhaka bank.

The report relied heavily on the personal judgment and observation.

CHAPTER 2
OVER VIEW OF DHAKA BANK

2.1 Historical Perspective 0f Dhaka Bank Limited

DHAKA BANK LIMITED was incorporated as a public limited Company on 6th April 1995 under the company act. 1994 and started its commercial operation on June 05, 1995 as a private sector bank. The bank started its journey with an authorized capital of Tk. 1,000.00 million and paid up capital of Tk. 100.00 million. Dhaka Bank Limited is the leading Private Sector Bank in Bangladesh offering full range of Personal, Corporate, International Trade, Foreign Exchange, Lease Finance and Capital Market Services. Dhaka Bank Limited is the preferred choice in Banking for Friendly and Personalized Services, cutting edge Technology, tailored solutions for Business needs, Global reach in Trade and Commerce and high yield on Investments, assuring Excellence in Banking Services. Dhaka Bank Limited (DBL) is a Scheduled Bank that was incorporated as a public limited company on April 06, 1995 under the Companies Act, 1994. The Bank started its commercial operation as a Private Sector Bank on July 05, 1995 with a target to play the vital role on the socio-economic development of the country. Aiming at offering Commercial Banking Service to the Customers door around the country, the Dhaka Bank limited (DBL) established 44 branches up-to year (2009). This organization achieved Customers confidence immediately after its establishment. Within this short time the bank has been successful in positioning itself as progressive and dynamic financial institution in the country. This is now widely acclaimed by the business community, from small entrepreneur to big merchant and conglomerates, including top rated corporate and foreign investors, for modern and innovative ideas and financial solution. To facilitate the daily clientele requirements, DHAKA BANK LTD. has started its business with all the features of a corporate bank and the products of both corporate and retail banking system. Among all of its products Credit is one of the most important

financial-tool in modern banking sector. Though DHAKA BANK is always trying to improve their services in this field, but in todays competitive business world, banks need to offer additional concentration to the clients requirement in order stay at the top. The strength of a bank depends on its management team. The Employer in Dhaka Bank is proud to have a team of highly motivated, well-educated and experienced executives who have been contributing substantially in the continued progress of the bank. The management is ably supported and assisted by well-motivated and experienced officers to run the day-to-day affairs of the bank smoothly. The bank is proud to have a dedicated band of people to whom the commitment to provide Excellence in banking is imbued in the way of their life. The marketing activities at the Dhaka Bank LTD. are very implicit and vast comparing to that of other bank in the country today. The Philosophy of the bank is EXCELENCE IN BANKING. This is the banks commitment and guiding principle. In the General Banking sector marketing seems to be the most important sector. To influencing the clients the bank uses a few apparatus or tactics. The main objective of the bank is to persuade the clients to open an account in the bank, because a bank is an institute where the service is more or less intangible. As the product of the bank is service oriented. Therefore, in most cases the bank has to pursue the customers through their wit and intelligence. Besides, there are a number of banks in the country both national and international therefore, the competition is immense. There are some very strict rules and specially maintained regulations and the operations of the bank, which are regulated by Bangladesh Bank. Another important task of the bank is to maintain the reputation through their customer service oriented facilities. And Dhaka Bank is always willing to offer new product features to the client. Besides the applications of these products or services are prepared in a very modern way so that the service can be provided in least time required. The Credit facilities approved by Dhaka Bank are increasing day by day because of its well-organized and trained management and also well-equipped facilities. The Bank 8

didnt stick with its in only one field rather it has diversified its credit facilities. In recent time banking sector becomes very competitive and without giving good and attractive facilities and service no bank can survive in this time. Dhaka Bank is also trying to provide good service to keep going with this competition. The Authorized Capital of the Dhaka Bank Limited (DBL) was Tk.6, 000 Million and Paid up Capital of Tk.100 million. The Paid up Capital of the Bank stood at Tk.1934 Million as on 31 December 2008. The Total Equity (Capital and Reserves) of the Bank as on 31 December, 2004 stood at Tk.1, 488 Million. Tk. 2216 million in 2005 increase 31 December 2006 Tk.2551 increase 31 December 2007 Tk 3,125 increase 31 December 2008 Tk 4,000 which exceed the stipulated requirements for Banks in Bangladesh.

2.2 The Mission of Dhaka Bank Limited

To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.

2.3 The Vision of Dhaka Bank Limited

At Dhaka Bank we draw our inspiration from the distant 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 the 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 visionExcellence in Banking.

2.4 Slogan
Excellence in Banking

2.5 Motto
The bank will be a confluence of the following three interests: Of the bank : profit maximization Of the customer : maximum benefit and satisfaction. Of the society : maximization of welfare

2.6 Values
Customer Focus Integrity Teamwork Respect for the individual Quality Responsible Citizenship.

2.7 Strategies
Establish DBL as one of the top five successful Private Commercial Banks by 2008 Build a strong deposit base. Introduce new products & services and upgrade existing products & services at

comparatively low cost in order to assure quick respond to the changing demands in the market. Strengthen corporate identity and values. Bring the entire system under a very advanced IT platform. Socialize and present the bank to the community as a corporate partner

10

2.8 Goals of the Bank

Long-term Goal:
To be the Market Leader both in terms of Deposits and good advances among Private Commercial Banks in Bangladesh by the year 2009.

Short-term Goal:
To increase Current Market Shares at least 0.50% by 2009.

Financial Goal:
To reduce the existing Cost of Fund by 1%, this currently stands at 11.06%

Other Goals 1. To be one of the best Banks of Bangladesh. 2. To achieve Excellence in Customer Service next to none and superior to
competitors. all

3. To cater to all differentiated segments of Retail and Wholesale Customers. 4. To be a High Quality Distributor of Product and Services. 5. To use state of the Art Technology in all spheres of Banking.

2.9 Objectives of the Dhaka Bank Limited

The main objectives of the Dhaka Bank are as follows: a) To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust business of in Bangladesh and abroad. b) To form, establish and organize any bank, company, institutions or organization either singly and/or in joint collaboration of partnership with any individual company, financial institution, bank, organization or any government and or government agency for the

11

purpose 0f carrying on banking, financial investment and trust business and/or any other business as provided hereafter c) To carry on any business relating to Wage Earner Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of foreign currency accounts and any other matter d related thereto. d) To contract or negotiate all kinds of loan and/or assistance, private or public from any source, local or foreign, and to take all such steps as may be required to be complete such deals. e) To form, organize assets, participate or aid in forming, promoting or organizing any or abroad for the purpose of undertaking any banking financial investment and trust business. f) To take part in the formation, management, supervision or control of business or operations of any company or undertaking and for that purpose to render technical managerial and services and act as administrator, manager and secretary. g) To purpose, or otherwise acquire, undertake, the whole or any part of or any interest in the business, goodwill, property, contract, agreement, right, private assets and liabilities of any other company bank corporation, partnership, body person or persons carrying on, or having on, any business which the company is authorized to carry on such terms and may be deemed expedient. h) To encourage sponsor and facilitate participation of private capital in financial industrial or commercial investment, share and securities and in particular by providing finance in the form of long, medium or short term loans or share participation by way of subscription to the promoter shares, or underwriting supports or and/or by any manner. i) To amalgamate or reconstruct or recognize with any commercial bank, or body corporate or association in cooperation with any person, commercial bank or association. j) To establish and open offices and branches to carry on all or any of the above business abroad and within the country provided prior permission is obtained from the Bangladesh Bank. k) To establish provident fund, gratuity, pension, and other fund for the welfare and benefit of the employees and staffs, former or present and any matter related thereon. bridge finance loans

12

l) To act as official liquidator and receiver. m) To receive, borrow or raise money on deposit, loan or otherwise upon such terms as the Dhaka Bank may approve and to give guarantee and indemnity in respect of any debt or contract. n) To appoint officials, staff, experts, advisers, consultants, auditors, Legal advisers and provide for their suitable remunerations. o) To advance, deposit or lend money to or with such persons or bodies, corporate, unincorporated, statutory, govt. and/or its agencies on such terms as the Dhaka Bank.

2.10 Workforce:
Dhaka Bank Limited (DBL) recognizes that a productive and motivated Work Force is a prerequisite to leadership with its Customers, its Shareholders and in the Market it serves. DBL treats every Employee with dignity and respect in a supportive environment of trust and openness where people of different backgrounds can reach their full potential. The Banks Human Resources Policy emphasize on providing Job Satisfaction, Growth Opportunities, and due recognition of superior performance. A good working environment reflects and promotes a high levy the utmost importance on continuous development of its Human Resources, identify the strength and weakness of the employee to assess the individual training needs, they are sent for training for selfdevelopment. To orient, enhance the Banking knowledge of the employees Dhaka Bank Training Institute (DBTI) organizes both in-house and external training. Total number of employees stood at 898 as on December 31, 2008.

2.11 Correspondent Relationships

The Bank established correspondent relationships with a number of Foreign Banks, namely American Express Bank, Bank of Tokyo, Standard Chartered Bank, Mashreq Bank, Hong Kong Shanghai Banking Corporation, CITI Bank NA-New York and AB Bank Ltd. The Bank is maintaining Foreign Exchange Accounts in New York, Tokyo, Calcutta, and London. The Bank has set up Letter of Credit on behalf of its valued Customers using its Correspondents as advising and reimbursing Banks. The Bank

13

maintains a need based Correspondent Relationship Policy, which is gradually expanding. The number of Foreign Correspondents is now 350.

2.12 Branch Network

SL Branch/Division (Opening Date)

Urban / Rura l

Address

Date of Openning

Agrabad

Urban

Chamber House, 38 Agrabad C.A., Chittagong

20-Jan-1996

Amin Bazar

Rural

Market Complex (1st Floor), Amin Bazar Jame Mosjid, 780, Begum Bari Union, Amin Bazar, Dhaka. Plot # 127, Bangabandhu Avenue, Narayangonj

15-Mar-2001

B. B. Road

Urban

2-Jul-2007

Banani

Urban

73/B, Kemal Ataturk Avenue, Banani, Dhaka - 1212

7-Oct-1996

Bangshal

Urban

88, Shahid Nazrul Islam Sarani, Bangshal, Dhaka-1100

6-Dec-1995

Baridhara

Urban

House # 27, Block # K, Shahid Sohrawardi Avenue, Baridhara, Dhaka Jamuna Shopping Complex, Mukundagati Bazar, Belkuchi, Sirajgonj Dag No. 361, Mouza No. 84, Board Bazar, Gazipur

14-Nov-2006

Belkuchi

Rural

24-Apr-2003

Board Bazar

Rural

8-Nov-2006

Bogra

Urban

Kazi Nazrul Islam Avenue, Jhautola, Bogra

24-Nov-2005

10

CDA Avenue

Urban

1st Floor Avenue Center, Plot#3900, 901, 565/A, CDA Avenue, East Nasirabad, Chittagong

25-Dec-2005

14

11

Coxs Bazar

Urban

Raxit Market (1st Floor), Main Road, Laldighirpar, Cox's Bazar

15-Dec-2005

12

DEPZ

Rural

Room # 51, Zone Service Building, DEPZ, Gonokbari, Savar, Dhaka

12-Apr-2001

13

Dhanmondi

Urban

House # 500 (Old) 20 (New), Road # 07, Dhanmondi R/A, Dhaka - 1205

1-Aug-2000

14

Fantasy Kingdom

Rural

Chowdhury Plaza, Jamgora, Savar, Dhaka

20-Mar-2002

15

Foreign Exchange

Urban

Biman Bhaban, 100, Motijheel C.A. Dhaka - 1000

15-Jul-1998

16

Goalabazar

Rural

Rahman Complex (1st Floor), Goalabazar, Osmani Nagar, Sylhet

27-Dec-2006

17

Gulshan

Urban

Plot # 7, Block # CE(D), Holding # 24, Gulshan Avenue, Dhaka-1212

13-Oct-2004

18

Hathazari

Rural

J & G Shopping Complex (1st Floor), Nazirhat Road, Hathazari, Chittagong Sadharan Bima Sadan (Ground Floor), 102, Agrabad C.A., Chittagong Sara Tower (1st Floor), 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000 1, Imamganj Lane, Imamganj, Dhaka

3-Sep-2006

19

IBB-Agrabad

Urban

22-May-2004

20

IBB-Dhaka

Urban

2-Jul-2003

21

Imamganj

Urban

12-Apr-1997

22

Islampur

Urban

6-7, Zia Complex, Islampur Road, Dhaka - 1100

12-Jan-1998

23

Joypara

Rural

Munshi Supar Market (1st Floor), 1083 Joypara, Dohar, Dhaka.

30-Nov-2005

24

Jubilee Road

Urban

183, Jubilee Road, Chittagong

15-Sep-1997

15

25

Karwan Bazar

Urban

Summit Centre (1st Floor), 18 Karwan Bazar, Dhaka - 1215

16-Nov-2000

26

Khatungonj

Urban

292-293 Khatungonj Road, Khatungonj, Chittagong

12-Aug-1996

27

Konabari

Rural

Plot # 146/147 (1st Floor), BSCIC, Konabari, Gazipur

28-Dec-2006

28

Laldghirpar

Urban

960, Laldighirpar, Kotwali, Sylhet

8-Oct-1998

29

Local Office

Urban

Adamjee Court (Ground Floor), 115120, Motijheel C.A., Dhaka - 1000

5-Jul-1995

30

Madhabdi Bazar

Rural

8, Bank Road, Madhabdi Bazar, Narsingdhi

8-Nov-2001

31

Moghbazar

Urban

70, Outer Circular Road (1st & 2nd Floor), Moghbazar, Dhaka

11-Sep-2006

32

Moulavibazar

Urban

S.R. Plaza (1st Floor), 1151/3, M Saifur Rahman Road, East Bazar, Moulavibazar. 26-29, S.M. Maleh Road, Tanbazar, Narayangonj

26-Dec-2004

33

Narayanganj

Urban

3-Dec-1997

34

Rajshahi

Urban

73, Gonok Para, Shaheb Bazar, Rajshahi

23-Nov-2005

35

Rangpur

Urban

Moti Plaza (1st Floor), Station Road, Rangpur

24-Dec-2006

36

Saidpur Branch

Rural

Gouri Plaza (1st Floor), Shahid Dr. Zikrul Islam Road, Saidpur, Nilphamari Plot # 12266-12268, Baro Bazar, Thana Road, Satkhira Sadar, Satkhira Tofayel Shopping Complex, Sonaimuri, Noakhali

25-Oct-2007

37

Satkhira

Urban

28-Dec-2006

38

Sonaimuri

Rural

2-Oct-2005

16

39

Uttara

Urban

House # 01, Road # 13, Sector # 01, Uttara, Dhaka - 1230.

30-Dec-1999

40

Feni

Urban

1st Floor, City Plaza, 123 S.S.K. Road, Feni

19-Nov-2007

41

Keranigonj

Rural

Khan Plaza (1st Floor), Shahid Delowar Hossain Road, East Aganagar, Keranigonj, Dhaka.

30-Dec-2007

42

Savar Bazar

Rural

Alam Plaza (1st Floor)122 JateshworSavar Bazar Bus StandSavar, Dhaka

25-Aug-2008

43

Uposhahar

Urban

House # 10, Road # 32 Block # D Uposhahar, Sylhet.

25-Aug-2008

44

Pagla Bazar

Rural

Alhaj Afsar uddin Karim Bhaban 1 st Floor,Pagla Bazar Fatulla Narayanganj Plot no# 01, Road No# 05, BL# A, Section# 10, Dhaka-1216, 1at, 2nd floor. Holding No:2B, KDA Avenue, Ward No: 20, Khulna City Corporation, Thana Shona Danga, Khulna Nur Mension Market Golakandil, Bhulta Rupgonj, Narayangonj

31-Aug-2008

45

Mirpur

Urban

7-Jun-09

46

KDA Avenue

Urban

20-Dec-09

47

Bhulta Branch

Rural

23-Dec-09

48

Patiya

Rural

Holding No: 720/1375/Kha, Thana Road, Word No: 5, Thana: Patiya 27-Dec-09

49

Comilla

Urban

Holding No: 20, Kandipar Mor, Word No: 11, Thana: Kotwali, Comilla 27-Dec-09

50

Halishahar

Urban

Holding No: 14/A, Road No: 02, Block: G, Halishahar Housing Asset, Word No: 24 29-Dec-09 Adamjee Court , 115-120, Motijheel C.A., Dhaka - 1000

Retail Banking Division

17

RBD - Cards Unit

Sara Tower, 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000

IT Division

Sara Tower, 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000

SME Centre Sirajgong

1st Floor, Chamber House, Holding No:55, Plot No. S.A-486, S.S. Road, Thana-Sirajgonj, Sadar, Pourashava- Sirajgong, Sirajgong. 1st Floor, 6, Jubilee Road, ThanaKotwali, Chittagong City Corporation, Chittagong. 1st Floor, 179, North Goran, P.O. & P.S.-Khilgaon, Dhaka-1219

SME Centre Jubilee Rd.

SME Center Goran

SME Center CEPZ

Ground Floor, Zone Service Complex, Chittagong Export Processing Zone, South Halishahar, Chittagong 1st Floor, Holding No.3903, Khaza Garden City, Town Hall Road, Thana-Habigonj Sadar, PourashavaHabigonj,Hobigonj

SME Center Hobigonj Sawrapara SME

25/10/2009

KIOSK New Market Dhaka

189 Govt. New Market -1205

Dhaka

2.13 Corporate information of DB

18

Name of company

Dhaka bank limited

a public limited company incorporated in Bangladesh on April 06, 1995 under companies act1994 and listed in Dhaka stock exchange limited And Chittagong stock exchange limited

Legal form

Date of commencement Registered office

July 5, 1995
Biman Bhaban (1st floor) 100 Motijheel c/a, Dhaka 1000, Bangladesh

Tele fax Swift (Society for worldwide inter bank financial telecommunication)code E-mail Web Page Auditors Tax consultant Credit Rating Company Managing director Company Secretary

+880 2 9554514 +880 2 9556584, 9571013,9565011

DHBLBDDH

info@dhakabank.com.bd www.dhakabankltd.com ACNABIN Chartered accounts Howladar,Yunus & co. Chartered account Credit Rating Information and Services Limited

Shahed Noman Mohammad Abu Musa Khondker Fazle Rashid Arham Masudul Huq

2.14 Product of Dhaka Bank Limited

Dhaka bank has already launched several Banking products for its valued customer.

19

2.14.1 Retail Banking

In 2001 DBL. introduced its personal banking program responding to the market demand for a complete range of modern banking products & services. On 14 th July 2002, DBL launched a new product-Excel Account which is first of its kind in Bangladesh. Designed exclusively for the salaried executives, Excel Account offers a packaged solution to companies and organizations in processing their employees salaries and funding employees loans.

2.14.2 Deposit Double

Deposit Double is a time specified deposit scheme for individual clients where the deposited money will be doubled in 6 years. The key differentiators of the product will be: TABLE: 3 Product Features

Deposited Amount Initial Deposit date Tenure

Min Tk 50,000 (singly or jointly) with multiples of Tk 10,000 Max Tk 20,00,000 (in single name) Tk 35,00,000 (in joint name) Any day of the month 6 years

2.14.3 Deposit Pension Scheme

Installment based savings schemes are a major category of saving instruments amongst mid to upper middle-income urban population. The scheme offers the clients the flexibility of tailoring the amount of monthly deposit based on his monthly cash flow position. The minimum monthly

20

deposit will be BDT 500.00 The client will have the option of depositing any amount in multiples of BDT 500.00 subject to a maximum of Tk 20,000. The client has flexibility of deciding on the tenor of the scheme in-terms of number of months. However, the minimum tenor would be 48 months and the maximum would be 144 months. A client can open maximum five DPS accounts in clients name, in his/her spouses name or in the name of his/her children or in joint names with any of his/her family members. if the client continues the scheme up-to maturity then at maturity, the client will be awarded a bonus 1% on the total deposit amount. However, to qualify for the bonus point, client may default in paying maximum 2 installments within the tenure of the DPS. If any client closes the deposit account before one year, s/he will not be entitled to any interest. Account running more than a year will be eligible for the prevailing interest offered in the savings account. Clients failing to deposit any installment will pay 5% late payment fee on the deposit installment amount as late payment fee, which will be realized at the time of depositing the next deposit Installment. Clients will have to open an Account with Dhaka Bank Limited and a standing instruction will be executed for auto-debit to effect the monthly installment. Clients will have the option of taking advance up to 90% of the deposited amount.

2.14.4 Income Unlimited

The management of Dhaka Bank Limited is pleased to launch Special Deposit Scheme, a new liability product on May 04, 2005. In multiples of Tk 50,000 However the minimum deposit will be Tk 1,00,000 (singly or jointly) and the maximum Tk 50,00,000 (singly/Jointly). Clients must have or open a savings account through which initial deposit will be collected. The monthly interest accrued on the deposit will be disbursed to the client through this savings/current account. The depositor(s) will have the option of making the initial deposit to the new / existing savings account in cash or through an account payee cheque. Interest payout mode should be transfer to savings account. Interest Payout Frequency should be monthly. Maturity / Renewal Instruction should only be Renew principal and redeem interest or Redeem interest & principal. Clients will have the option of taking advance up to 90% of the deposited amount at the time of application. 21

2.14.5 Smart Plant

Smart Plant offers you to multiply your initial cash to 10 times in 6 years. You are required to deposit at least Taka 10,000 or multiple of it to avail the opportunity. In single name you can depositmaximum Taka 50, 00,000. Dhaka Bank shall contribute 4 times of your deposited amount to build up a fund for issuance of Smart Plant. Maturity period of the Smart Plant is 6 years. The total Smart Plant amount (your deposit + Bank Contribution) will double in 6 years. For example; if you deposit Taka 10,000, bank shall contribute Taka 40,000, altogether the Smart Plant amount will be Taka 50,000. On maturity (after 6 years) the Smart Plant amount will be Taka 1, 00,000. If you fail to pay the installment within the due date, a late payment fee of 2% per month of the installment amount will be charged. If you are a Bangladeshi with an age more than 18 years and not exceeding 54 years, you can avail Smart Plant. What will happen if I die before Smart Plan maturity? Your nominee shall get matured value of Smart Plan if you demise prematurely before completing Smart Plant period. However, death from Self-inflicted injury, Suicide during the first year of insurance coverage, AIDS and HIV related disease, Abuse of alcohol or drugs, War, or riot, or civil commotion, Illegal act/criminal activity, Death due to any reason within the first 3 months of coverage except for accidental death, Natural Disaster viz. Earth Quake, Tsunami etc.

2.14.6 Personal Loan

As part of establishing a personal banking franchise of

Dhaka Bank Limited, the bank has successfully launched Personal Loan. The product is a term financing facility to individuals to aid them in their purchases of consumer durables or services. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 10,000. 22

2.14.7 Car Loan

As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Car Loan. The product is a term financing facility to individuals to aid them In there pursuit of has a car of their dream. The facility becomes affordable to the clients as the repayment is done through fixed installments commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 60 months. In case of brand new cars the loan tenure will be maximum72months. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 45,000. 2.14.8 Vacation Loan As part of establishing a personal banking franchise of Dhaka Bank Limited, the bank has successfully launched Vacation Loan. The product is a term financing facility to individuals to aid them in their pursuit of spending a vacation in the country or abroad. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installment varies from 12 to 48months. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 10,000. 2.14.9 Home Loan The product is a term financing facility to individuals to aid them in their purchases of apartment or house or construction of house. The facility will become affordable to the

23

clients as the repayment is done through fixed installment as commonly known as EMI (equal monthly installment) across the facility period. Depending on the size of the loan, the maximum period of the loan would be 180 months (15 years). Loans are restricted to Bangladeshi nationals falling in the categories mentioned below: The minimum age for any borrower will be 21 years with a maximum age 50 years (at the time of application). The minimum verified Gross Family Monthly Income of the applicant should be BDT 40 000.The family income will include only the income of the applicant and spouse. The maximum permitted Equal Monthly Installment (EMI) paid by the borrower should be no more than the 33% of the Family Monthly Disposable Income (FMDI) of the borrower per month. In calculating FMDI, we propose to use the following industry standard formula. Proven income of obligor PLUS proven income of spouse (if the spouse is working) LESS current monthly loan obligations (if any), other monthly fixed obligations (rent, childrens education, monthly food expenses, etc). Minimum loan amount Maximum loan Loan amount limits under the amount program BDT 500,000 BDT 3,500,000 The maximum loan tenor for different amount of loan is proposed to be as following Loan Amount Max Tenure 5 lac to less tan 10 lac 5 yrs 10 Lac to 35 lac 10-15yrs (negotiable)*

1. * The tenor will be decided at the discretion of the management. 2.14.10 Any Purpose Loan Its time to do a few things you really wanted to Introducing "Any Purpose Loan" from Dhaka Bank Limited. Now you can get loan up to Tk. 500,000* to spend it any way you choose to. Just walk into any of our branches and walk out loaded. 2.14.11 Excel Account

24

Excel Account has been tailored in the manner of having both asset and liability characteristics blended into a single product for salaried individuals employed in any institution. On virtue of this product, prospective clients receive a credit interest based on the credit balance available in the account. The clients will also be required to pay the bank OD interest if the balance of the account becomes overdraft. The institution to which the individual is employed must have salary account maintained with the bank. The institution must have a corporate guarantee maintained with the bank. 2.14.12 Salary Account Dhaka Bank has launched a special package of savings account for employees belonging to institutions with which Dhaka Bank has a corporate agreement. With this package salaried employees of these institutions enjoy interest on a daily balance. The key features of the Salary Account are: Interest to be calculated on a daily balance basis No Periodic Service Charge ATM Card Facility Credit Card Facility On-line Banking Facility Internet & SMS Banking Facility

2.14.13 Gift Cheque Dhaka Bank has recently refurbished its Gift Cheque. The features of the gift cheque are as follows: Can be encashed at any branch even if the encashing branch is not the issuing branch of the instrument. Interest will be applicable only if the instrument is encashed after three months from the date of issue in the following manner:

25

a. No Interest if encashed before three months from the date of issue. b. 6% if encashed after three months and before twelve months from the date of issue. c. 7.25% if encashed after twelve months from the date of issue. The gift cheque may be encashed using either of the two modes, (a) cash or (b) Fund Transfer. Encashment of gift cheque is not allowed over clearing. No service charge is applicable Dhaka Bank Limited issues gift cheque in three denominations of Tk.100, Tk.500 and Tk.1000 2.15 Other Retail Banking Products Current, Savings & FD Accounts 24 hours Banking ATM Card: In order to add value to product & services DBL. has reduced the annual fee of the card from Tk. 1500 to Tk. 500 per year. Clients can now settle BTTB & Grameen phone bills using ATM card. DBL. Credit Card: The cash advance limit has been increased to 50% from 25%. The unique feature of this service is to deliver the Credit Card within only 7 days against security; and for unsecured card it only takes 10 days. DBL. also offer Spouse Card absolutely free of cost. Any Branch Banking and Phone Banking (absolutely free of cost). Foreign Currency Accounts (NFCD & RFCD).

2.16 Corporate Banking

Corporate Banking business was performed fairly well in 2002 despite a sluggish credit demand in the market. This year priority has been given to expand business in low risk sectors. Besides we have designed a comprehensive risk management system to monitor and control our asset quality. Letter of Credit, Guarantee, Import & Export Finance, Syndicate Loan, Project Financing, Leasing, Working Capital Financing etc. all are Corporate Banking Products.

26

2.17 Security of Assets A powerful and effective means of generating funds for a certain category of institutions, Security of Assets is still in its infancy in The need however for such a service is great and there is a lot of support from multilateral financial institutions, such as the World Bank and the Asian Development Bank, for such activities to be developed further in this country. Dhaka Bank intends to take up this challenge and play a significant role in ensuring that Security of Assets becomes a normal part of the range of financial instruments available for organizations who can count on a steady, but piecemeal, flow of revenue and want to translate this stream into cash resources with which to carry out further lending activities to new customers. Some practical issues still need to be settled such as those concerning pricing, or the legal framework, but it is expected that, as Dhaka Bank and other institutions pursue more such security activities these will be resolved. 2.18 Finance & Advisory Services Given the needs of its large and varied base of corporate clients Dhaka Bank will be positioning itself to provide investment banking advisory services. These could cover a whole spectrum of activities such as Guidance on means of raising finance from the local Stock markets, Mergers and Acquisitions, Valuations, Reconstructions of Distressed companies and other expert knowledge based advice. By this means Dhaka Bank hopes to play the role of strategic counselor to blue-chip Bangladesh companies and then move from the level of advice to possible implementation of solutions to complex financing problems that may arise from time to time. 2.19 Syndication of Fund There has been a surge in the number of syndication deals closed in the last few years. 2004 was an exceptionally good year for syndicated deals for the local commercial banks also for the foreign banks. The total number of syndications in 2004 exceeded 10 totaling over Tk. 10 billion. This rise in the number of syndications can be primarily attributed to the prudential lending guidelines of the Bangladesh Bank. A commercial bank may

27

provide funded facilities up to a maximum of 25% of its equity. Due to this reason, projects with sizeable costs need to approach more than one bank for their debt requirements and therefore the demand for syndications exist. Credit risk diversification has led many international companies to introduce credit derivatives that are actively being traded. Security of assets is one such credit risk derivative that allows financial institutions to diversify their portfolios.

At Dhaka Bank Limited, the Syndications and Structured Finance unit was setup on October 30, 2004. This unit successfully closed two syndicated deals in the first and second quarters of 2004. The Syndications and Structured Finance team as a business unit soon followed up by closing another deal totaling Tk 2.10 billion for a large local corporate. The year (2004) being the first full year of operation for the team ended on a high note as we were able to close three syndicated deals as the Lead Bank, two deals as the Co-Arranger and several other deals as a participant. 2.20 Small and Medium Enterprises Dhaka Bank has come forward to extend its services towards Micro and Small & Medium Enterprises. Since inception, the Dhaka Bank has held socio-economic development in high esteem and was among the first to recognize the potentials of SME.

2.21 Dhaka Banks Involvement: Recognizing the SME segments value additions and employment generation capabilities quite early, the Bank has pioneered SME financing in Bangladesh in 2003, focusing on stimulating the manufacturing sector and actively promoting trading and service businesses.

28

The SME unit has used the year 2006 diligently in building its capabilities and has furthered its portfolio to address the needs of small enterprise with a portfolio growth of 2000% compared to year-end 2005.

2.22 Story of a successful Branch in SME Financing: The Bank started branch operations at Belkuchi Sirajgonj in April 2003. Prior to the Banks intervention, the weaving community did not have the financial strength to stock their products till Eid ul Fitr when the annual sale takes place. Traders were taking advantage to the situation by buying up entire productions at low prices and liquidating stocks just before Eid. With financial services from Dhaka Bank Limited, the weavers have converted to power looms, significantly increased profitability and reduced the involvement of middlemen. They are now working on institutionalizing the learning and applying them in other areas across Bangladesh, particularly in textiles, light engineering and other manufacturing clusters. Already we have identified several clusters and are working on improving access to finance within these clusters. 2.23 Services of Dhaka Bank Limited 2.23.1 Personal Banking Amongst Private Sector bank's, Dhaka Bank has already made its mark in the personal banking segment. The promotions like "Baishakhi Offer", a strategic tie up with Electra International Limited, distributor of Samsung brand products, and "Freeze the Summer Campaign" a strategic tie-up with Esquire Electronics Limited, distributor of Sharp/General Brand electrical appliances saw Dhaka Bank to experience more than a reasonable growth on the personal banking business in 2008. 2.23.2 Corporate Banking

29

Providing a tailored solution is the essence of our Corporate Banking services. Dhaka Bank recognizes that corporate customers' needs vary from one to another and a customized solution is critical for the success of their business. Dhaka Bank offers a full range of tailored advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers will offer you the right solution. You will find top-class skills and in-depth knowledge of market trends in our corporate Banking specialists, speedy approvals and efficient processing fully satisfying your requirements - altogether a rewarding experience. Their experience in handling Corporate Banking business covers a wide span of businesses and industries. You can leverage on our expertise in the following sectors particularly: Telecom, Media and Technology Textile, Ready Made Garments Edible Oil, Consumer and Diversified Industries Shipping, Ship Breaking, Steel and Engineering Energy, Chemicals and Pharmaceuticals Cement and Construction Financial Institutions 2.23.3 Floating of Public Issues The Bank assists companies to underwrite public issues. Dhaka Bank has successfully participated in a number of issues. 2.23.4 Loan Syndication 30

DBL participates in a number of loan syndication arrangements involving foreign investment has been highly acclaimed. The projects we have handled as the lead arranger or co-arranger with other banks and financial institutions include production and export oriented ventures in power generation, cement production, food processing and a large undertaking in leisure and amusement.

2.23.5 Islamic Banking Dhaka Bank Limited offers Shariah based Islamic Banking Services to its clients. The bank opened its First Islamic Banking Branch on July 02, 2003 at Motijheel Commercial Area, Dhaka. The second Islamic Banking branch of the bank commenced its operation at Agrabad Commercial Area, Chittagong on May 22, 2004.Dhaka Bank Limited is a provider of on line banking services and any of its clients may avail Islamic Banking services through any of the branches of the bank across the country. Dhaka Bank Islamic Banking Branches offer fully Shariah based, Interest free, ProfitLoss Sharing Banking Services. Dhaka Bank Shariah Council is closely monitoring its activities. Besides, Dhaka Bank is an active member of Islamic Banking Consultative Forum, Dhaka and Central Shariah Board of Bangladesh. 2.23.6 Capital Market Services Capital Market Operation besides investment in Treasury Bills, Prize Bonds and other Government Securities constitute the investment basket of Dhaka Bank Limited. Interest rate cut on bank deposits and government savings instruments has contributed to significant surge on the stock markets in the second half of 2004, which creates opportunities for the Bank in terms of capital market operations. The Bank is a member of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Capital Market Division conducted a total trade of tk.2,045 million against tk.1,164 million in 2005. Gross Operating profit from Capital Market Services Division is tk.39.80 million against tk.5 million in 2005. 2.23.7 ATM Card Services 31

Features: Cash Withdrawals up to Tk.1 Lac per day Utility payments T&T, Mobile phones, DESA, etc. Multi-account access Fund Transfers Mini Statements PIN change

2.23.8 Credit Card Services Get it in just 7 days, or free! Dhaka Bank Limited brings you Your Everyday Credit Card in the shortest possible time. We recognize that you need your card every day. That is why we have developed processes to guarantee delivery of your card in just 7 days when you apply for a fully secured card; for an unsecured card it will be ready in just 10 days. Otherwise we will give you the card free - the subscription fee completely waived! What you can do with your Dhaka Bank Credit Card Everything you would expect from a credit card. You can use it at all the merchant locations that display the Vanik Card sticker. That's not all. You can also use it at all the locations that display the Card sticker. And that's a whopping 1,700 merchants and more than 50 products and services. What's more, we are always increasing our merchant locations. An updated list is available from our Card Centre. Free Spouse Card Your spouse needs a card too for everyday use. That is why we offer a card to your spouse absolutely FREE. Your spouse can enjoy the same facilities as you do. So, you won't have to worry about whether either of you are carrying enough cash.

32

Convenience: Unlike other cards, all branches of Dhaka Bank Ltd. can accept your bill payments and handle your card service requests. You may open an account as well with any of these branches to conduct all your banking and card service requirements under one roof. Flexible Repayment Options: Dhaka Bank Credit Card offers you credit facility absolutely FREE up to a maximum of 45 days. You get 15 days time from the date of statement to repay your dues. You can pay in full within 15 days (and save money; no interest accrued, no payout) or in part. The minimum amount required to pay is 1/12th of the total amount or Tk. 200 (whichever is higher). The revolving credit line of your card allows you to select payment terms to suit your other financial commitments. Quick Replacement: If card has been lost or stolen, a replacement will be sent to the client within a couple of days. But remember to report the loss as soon as you have detected it. Once reported, there will be no liability on fraudulent.

2.23.9 Locker Services A client could use the locker facility of Dhaka Bank Limited and thus have the option of covering your valuables against any unfortunate incident. DBL offer security to our locker service as afforded to the 33

Bank's own property at a very competitive price DBL would be at your service from Saturday through Thursday from 9:00 am to 4:00 pm Lockers are available at Gulshan, Banani, Dhanmondi, Uttara, CDA Avenue & Cox's Bazar Branch.

2.23.10 Online Banking Services Dhaka Bank Limited introduces Net Banking and intends to maintain the lead with enhanced facilities through this media. Client can get access to real time account information through the Internet. Transfer money from his/her account, utility bill payment and more. Through onLine Banking Services, clients can deposit to and withdraw from his/her account held with a particular branch up to a limit of Tk: 10,000.00 through any branch of Dhaka Bank Limited 2.23.11 Internet Banking Services Through Internet banking the client can access the account to view and print the balance account statement for last 20 (twenty) transactions.
2.24 Growth of the Bank The Dhaka Bank Limited (DBL) is one of the most successful Private Sector Commercial Bank in our country, though it started its operation only fourteen years back. It has achieved the trust of the general people and made reasonable contribution to the Economy of the country by helping the people investing allowing Credit Facility. 2.25 Capital & Reserve Dhaka Bank Limited (DBL) commences its operation with an Authorized Capital of Tk.1000.00 Million with Paid up Capital of Tk.100.00 Million.The Paid up Capital of the Bank amounted to 1547 Million as on December 31, 2007 and Tk.1934 Million on 2008. Table 1: Paid up Capital of DBL Taka in Million Year 2007 Paid up Capital 1547

34

2008

1934

Chart 1 Paid up Capital of DBL Taka in Million

2000 1500 1000 500 0

4000 3000 2000 1000 0

Table2: Capital & Reserve of DBL Taka in Million Chart 2 : Capital & Reserve of DBL Taka in Million

Year 2007 2008

Capital & Reserve 3125 4000

2 0 0 72 0 0 8

2008 2007

2 0 0 72 0 0 8

2.26 Profit

35

Dhaka Bank Limited (DBL) registered an Operating Profit of Tk.703 Million as on December 31, 2007. Tk 839 Million on 2008. Where as it was Tk.136 Million in the previous year (2006).
Table 3: Profit of DBL Taka in Million Year Profit 2007 703 2008 839 Chart 3: Profit of DBL Taka in Million

9 8 7 6 5 4 3 2 1

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0
2 0 0 27 0 0 8

2.27 Deposits
As on December 31, 2007 the Total Deposits of the Bank stood at Tk.48730 Million. In 2008 the total deposit of the bank stood at Tk.56986 Million. Table 4: Deposits of DBL in tk. million Year 2007 2008 Deposits 48730 56986

Chart 4: Deposits of DBL in tk. million

60000 50000 40000 30000 20000 10000 0

2007 2008 2008 2007

36

2.28 Loan and Advances The Bank recorded a 24% growth in Advances with a Total Loans and Advances Portfolio of Tk.46698 Million at the end of December 2008 compared to Tk.39972 Million in 2007. Dhaka Bank is making Loan and Advances in different areas. The Bank continues to explore and diversify its loan .0distribution with the objective of efficient use of resources and take utmost precaution to safeguard it. DBL also participated in a Syndicated Loan. Table 5: Loans & Advances of DBL Taka in Million
Year 2007 2008 Loans & Advances 39972 49698

Chart 5: Loans & Advances of DBL Taka in Million

37

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2007 2008

2008 2007

38

CHAPTER 3 HRM AN OVERVIEW

39

3.1 Meaning of HRM:

Management and human resource management are one and the same. They should never be separated. Management is personnel administration. Management has the three jobs, two of which are directly related to personnel managing, a business, managing managers and managing workers and work. The word management has three syllables ManageMen-T. If T is taken for tact, then etymologically management means how to manage men with tact. Management is the process of efficiently getting things done with and through other people. HRM deals with the design of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. There are many definitions about human resource management (HRM). Well known definitions offered by Michael Jucious (1984). He defined human resources management or personnel management as the field of management involves planning, organizing, directing and controlling the function of procuring, developing, maintaining and motivating a labor force. It is the process of acquiring, retaining, terminating, developing and properly using the human resources in an organization. The acquisition function begins with planning. It includes the recruitment, selection and socialization of employees. HR planning, managers attempt to anticipate forces that will influence the future supply of demand for employees. The development function includes employee training, management, development and career development. As jobs evolve and change, ongoing retraining is necessary to accommodate technological changes. Encouraging development of all employees is necessary to prepare organizations for future challenges. Career planning identifies paths and activities for individual employees as they develop within the organization. The motivation function begins with the recognition that individuals are unique and the motivational techniques (job satisfaction, employee performance appraisal and compensation) must reflect the needs of each individual. Assessing how employees

40

perform their jobs is the focus of performance appraisal. Compensation rewards people for performing organizational work through pay, incentives and benefits. The maintenance function is concerned with providing those working conditions that employees are necessary in order to maintain their commitment to the organization. The relationship between managers and employees must be handled effectively if both the employees and the organization are to prosper together. HRM deals with the design of formal system in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. There is a growing recognition that effective use of people in the organization can provide a competitive advantage. It pervades the organization. Every person in an organization is involved with personnel decisions. The responsibility for human resource management activities rests with each manager. If managers throughout the organization do not accept their responsibility, then human resources activities may be done only partially or not at all. It is concerned with managing people at work. It covers all types of personnel. It is a continuous function. It draws on a number of related disciplines, such as industrial psychology, Sociology, Social Psychology, Anthropology and Economics. The function of HRM is advisory in nature. In management terminology, it is a staff function. The personnel manager advises the operating departments on matters relating to personnel. He does not issue orders to them but gives them advice Traditionally, HRM is the process of acquiring, training, appraising, and compensating employees and attending to their labor relation, health and safety, and fairness concerns but in the changing context, HRM is seen as a set of techniques that claimed to embrace and promote new approaches to management of people and work organization to enhance employee commitment and flexibility as well as their willingness to respond rapidly with the changing market conditions for providing competitive advantage to the organizations. This approach is based on four key elements.

41

1. Beliefs and assumption:

a) That this is the human resources, which gives competitive edge. b) That the aim should be not mere compliance with rules but employee commitment.
c) That therefore, employees should, for example, be very carefully selected and

developed.

2. Strategic Qualities:
a) Because of the above factor, HR decisions are of strategic important. b) Top management involvement is necessary. c) HR policy should be integrated in to the business strategy, stemming from it and even contributing to it.

3. Critical role of the managers:

a) Because HR practice is critical to core activities of the business, it is too important to be left to personnel specialist alone. b) Line managers are (or need to be) closely involved as both deliverers and dire Of the HR policies. c) much greater attention is paid to the management of managers themselves.

4. Key Levers:
a) Managing culture is more important then managing procures and systems.
b) Integrated action on selection, communication, training, reward and development. c) Restructuring and job redesign to allow developed responsibility

empowerment.

3.2 History of HRM:

42

The utilization of people, at least in a rudimentary form, can be traced to ancient times. Efforts to best use talents, even through informal in nature, were undertaken whenever people came together in a community. The change has been that during the course of the least century efforts to best manage human resources have become more formal and specialized. The history of HRM can be characterized in two ways. First, as moving through four broad phases: the craft system, scientific management, the human relations approach, and the current organizational science-human resource approach. The twentieth century time line illustrated in Table 1.1.

3.2.1 The Craft System:

From the earliest times in Egypt and Babylon, training in craft skills was organized to maintain an adequate supply of craft workers. By the thirteenth century, craft training had become popular in Western Europe. Craft guilds supervised quality and methods of production and regulated conditions of employment for each occupation. The master crafts worker controlled the craft guilds, and the recruit entered after a period of training as an apprentice. The craft system was best suited to domestic industry, which the master operated on his own premises, with his as assistants residing and working in the same house.

3.2.2 Scientific Management:

The Industrial Revolution and mass production emerged in the nineteenth and early twentieth centuries and led to the deterioration of the craft guilds. The development of mass production transformed the organization of work in two important ways. First, tasks were subdivided into very simple parts that could be performed by unskilled workers. Second, manufacturing grew to such an extent that a large hierarchy of supervisors and managers became necessary. Along with mass production came the assembly line and a scientific approach to an analysis of work in terms of its constituent parts. The basis of scientific management is that there is one best way to do a job. The best way will be the most efficient and therefore the fastest and least expensive. The founder of 43

this new field of scientific management was an American mechanical engineer, Frederick "W. Taylor (1856-1915). Two of Taylor's contemporaries, Frank Gilbreth (1868-1924) and his spouse Ullian Moeller Gilbreth (1878-1972), joined in becoming the proponents of scientific management or industrial engineering. In the decade after 1910, the principles of scientific management were applied on a wholesale basis in the United States. Taylor and his disciples assumed that workers wanted to be used efficiently and were motivated by money. This philosophy proved to be incorrect because it ignored feelings-and other motives. Workers were left dissatisfied with their jobs. Union opposition grew as union organizers condemned Taylorism for depriving workers of a voice in the conditions and functions of their weink. One result was the emergence of welfare secretaries as organizational employee to oversee programs for the welfare of employees. These pro-grant included recreational facilities, employee assistance programs, and medical programs. The welfare secretary position was the beginning of the professional personnel (now human resource) function. As antiquated as scientific management seems now, some would argue that many of the basic principles still apply today.26 For example, the many special in-centive systems organizations use to motivate employees and reward performance are adapted from Taylor's ideas. The ideas of scientific management are adaptable, and its basic principles continue to have relevance after almost 100 years.

3.2.3 Human Relations:

The first important discovery about the social context of mass production occurred in tinfamous experiment undertaken by U.S. social scientists Elton Mayo (1880-1940) and Fritz Roethlisberger (1898-1974) between 1924 and 1932 at Western Electrics Hawthorne plant in Chicago. Mayo and his colleagues sought to study the effects of changes in illumination on productivity. The investigators chose two groups of employees working under similar conditions. The level of illumination was varied for the test group but kept constant for the control group. To Mayo's surprise, the output of both groups rose. Even when the researchers told the workers in one group that the light was 44

going to be changed but then did not change it, the workers expressed satisfaction, and productivity continued to Increase. Mayo saw that the significant variable was not physical but psychological; the reason for the increase in productivity was the workers' attitudes toward their jobs and Western Electric. Because their cooperation had been requested, the workers now felt themselves part of an important group whose help and advice were being sought by the company.27 The discovery of the "Hawthorne effect" led to further research on the social factors associated with work, Results of these studies led to the human relations movement, with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. However, the idea that good human relations in and of themselves will increase productivity failed to be consistently supported, and many of the movement's ideas were abandoned.

3.2.4 Organizational Science:

Following realization of the limitations of the human relations approach, academic researchers from various behavioral disciplines, such as psychology, political science, economics, and sociology, began studying organizations. The organizational science approach focuses more on the total organization and less on just the individual. HRM, as we currently know it, grew out of the organizational science trend and combines learning from the previous movements with current research in the behavioral sciences. HR Activity Example Event

Time period HR Focus Before 1890 Industrial 1900-1910 technologies Employee being 1920s

1930s

Disciplinary systems National cash register Health and safety (ncr)forms first well- programs personnel department to Handel employee issues Task design, Time and motion period of scientific efficiency, and management studies impact of work Employee groups on counseling and individual workers testing Major labor relations Union of Communication

45

1940s

1950s

1960s

1970s

1980s

programs Anti-union campaigns Personnel becomes staff support to operational line units Employee benefits Wage increases and compensation Cost-of-living adjustments Pension, health, and other benefits plans Employee Training and relations development Specialized Separate divisions personnel within personnel functions established; recruitment, labor relations, training, benefits etc. Employee Employee rights participation issues now regulated in areas of discrimination, equal opportunity safety and health, and various benefit Perform. 17 Government Employee rights issues intervention now regulated in areas of discrimination, equal opportunity, safety and health Employee recognition Displacement

workplace Passage of major labor laws

legislation: Norris LaGuardia Act National labor relation Act(wag net Act)

General Motors And the United Auto Workers sing first contract with escalator clause. The Hawthorne studies from the human relation movement find widespread applicability.

Peter Duckers encyclopedic the practice of Management (1954) finds widespread applicability.

Griggs v.Duke power, the first u,s Supreme Court employment discrimination case. William Ouchi,s Theory Z examines the applicability of Japanese employment practices to Western companies. About 70% of married women are employed, more than double the 1960 rate. Exemplified by David

1990s

and

2000

Changing demographics of work force Technology Strategic HR

46

beyond

planning

Ulrichs book Human Resource Champions, which examines the role of HRM in the twenty-first century.

Source: Adapted from William j.Robert k.prescott, and Maria w.Taylor, Strategic Human
Resource Management.

3.3 Function of HRM

HR managers are performing a variety of functions. The functional areas of HR managers are changing as the time goes on. The main HRM functions include: Human resource planning is an important activity that involves estimating the size and makeup of the future work force. It is a process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time. Planning of human resources is the life-blood of the firm. Without the right people in the right place at the right time, the firm could go out of business.

Recruitment: Recruitment is the process of finding and attracting qualified or suitable

applicants to fill vacancies. Recruiting is important because the best- qualified applicants must be found to fill vacancies. The methods and procedures used to acquire an understanding about jobs are called job analysis. This is discussed next. There are mainly two sources of recruitment: internal and external. Promotion from within an organization is called internal source and recruiting new people from outside the organization is known as external source.

Job analysis: Job analysis is the process of determining the tasks that make up the job
ands the knowledge and skills and abilities an employee needs to successfully accomplish the job. From job analysis, job description and job specification can be prepared. Job description is a written statement of what the jobholder does how it is done and why it is done. Job specifications state the qualifications necessary for a job.

Selection: Selection is a process of hiring suitable people for job. Right man for right
job is the main goal of selection. The selection process involves many steps such as 47

preliminary reception of application, interviewing, test, medical test, references and final decision of hiring.

Placement: Placement is the assignment or reassignment of duties to employee. It may

take different forms such as promotion, transfer, demotion, and termination.

Orientation: Orientation is a process of getting new employees acquainted with the

organization, its culture, rules and regulation, objectives and supervisors and other employees. It is the act of introducing new employees to organization and their work units. It is important because it helps new employee to adapt with new situation.

Training: Training is a continual process of helping employees to perform at a high

level. It is a process of acquiring new skills to do job properly. Training changes and modifies employee attitudes and behaviors that will improve his ability to perform on the job. To be effective, a training program must accomplish a number of objectives. First, it must be based on both organizational and individual needs. Second, the objectives of training should spell out what problems will be solved. Third, all training should be based on sound theories of learning. Finally, a training program must be evaluated to determine whether it is working.

Job evaluation: Job evaluation is a process of measuring and determining the value of
each job in relation to all jobs within the organization. Jobs are ranked in order to arrive at each job's appropriate worth. It is the basis of designing a well- balanced compensation program. The widely used methods of job evaluation are ranking method, classification method, point rating method, and factor comparison method.

Performance appraisal: Performance appraisal is a process in an organization

whereby each employee is evaluated to determine how he or she is performing. Employee may be appraised against absolute standards, relative standards, and objective. The appraisal process consists of six steps: establish performance standards, communicate performance expectations to employees, measure actual performance, compare actual

48

performance with standards, discuss the appraisal with the employee, if necessary and initiate corrective action.

Compensation: Compensation is the reward or price for labor. The goal of

compensation administration are to design the lowest-cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as fair by these employees.

Discipline: Discipline refers to a condition in the organization when employees

conduct themselves in accordance with the organization's rules and standard s of acceptable behavior. For the most part, employees discipline themselves. But not all employees will accept the responsibility of self-discipline. Some are problem employees. These employees require some degree of extrinsic disciplinary action. This extrinsic is labeled punishment. The most frequent discipline problems can be classified as related to attendance, on-the-job behavior, dishonesty, and outside criminal activities. Disciplinary actions available to the manager include oral warning, written warning, suspension, demotion, pay cut, and dismissal. Trade union is an organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining. The goals of unions include
o o o o Influencing the wage and effort bargain, Establish members, Influencing the administration of rules Obtaining political power in the state and over the economy. a security system for

Collective bargaining is negotiation, administration and interpretation of a written agreement between two parties; at least one of, which represents a group that is acting collectively, that, covers a specific period of time.

3.4 Importance of HRM:

49

With the increase in the size and complexity of business organizations, the most important, factor in business. Business needs people as owners, employees, and consumers. Organizations need people to make them operate. Business may be operated differently and the objectives of business may differ, but the universal element in all business activities is people. An organization is nothing without human resources. Any human organization a factory, a hospital or and association consists of people working together. According to economists, the factors of production are land, labor, capital and entrepreneurship. Of all the resources, the most important one is human resource because human being plays a dual role- as resource, as well as a motive force for all other resources by manipulating them by way of developing, utilizing, commanding and controlling. It is the most important of all other resources. This is because manpower is that resource through which management wants to control and direct all other resources like machines, materials, money and others. An organization is nothing without people. It is true that capital technology and human force are the important elements for production. In fact, productivity is the function of a set of interrelated factors (e.g., political, social, economic, educational and cultural). Experts on productivity improvement emphasize more on people factor for enhancing productivity. They are of the view that relatively human resource is the most important of all the factors of production. Resources other than human being could produce nothing. Physical resources by themselves cannot improve efficiency or contribute to an increased rate of return on investment. It is through the combined and concerted efforts of people that monetary or material resources are harnessed to achieve organizational goals. Why is human resource superior to other elements of production? Capital can be borrowed and technology can be imported, but people cannot be bought. All the factors of production other than the workforce skills can be duplicated anywhere in the world. It is all fungible capital, technology, raw materials, information all except for one thing the most critical part, the one element that is unique about a nation, its workforce (Griffin, 1994). Fred Lutherans (2000) an organizational Behavior rightly argues it is not technology, which separates the Saturn plant of GM from other manufacturing facilities. Rather the Saturn plant represents a profound change in the way people are managed.

50

Productivity is basically people-based. It is for this reason the developing countries in spite of acquiring modern technologies could not achieve higher level of productivity. The rapidity of technology transfer, access to worldwide capita! Markets and global competition reduce the traditional advantages of superior technology and isolated markets; Technology becomes inactive without work forces. It is man who works behind machine. Even in a highly automated plant, people are nevertheless required to coordinate, and control the plant's operation Workers must use them effectively. They must be motivated to provide the best quality and customer service possible. Sakurai (1989), an adviser of the Japan Productivity Center has rightly pointed out improvement of productivity through the introduction of new technology depends, by and large, on how people in the organization accept the change. To obtain desired result from the introduction of change in technology, the change must be acceptable to them". That is, acceptance of change will lie with the behavioral level of the workforce. Needless to say, machine increases the muscle power of man. Man without the machine is also less productive. They are inseparable. Labor and technology combined generate the outputs that are priced and sold to customers. As Morita, the founder and the author of Made in Japan remarks assets make things possible but people make things happen. Organizations depend on people to vow change occurs without efficient human beings. Improved productivity through people is ultimately the fountainhead of all human progress. In the ultimate analysis, it is the human factor, which will determine the final productivity of enterprise. People supply the talents, skills, knowledge and experience to Achieve the organizations objectives. Let us now explain some inherent qualities that a human being is endowed with.

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CHAPTER 4
MANAGEMENT
OF

DHAKA BANK

52

4.1 Organizational Structure of Dhaka bank limited

Designations are in ascending orderChairman Board of Directors Executive Committee Managing Director Additional Managing Director Deputy Managing Director Senior Executive Vice President Executive Level Management Executive Vice President Senior Vice President Vice President Senior Assistant Vice President First Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Senior Officer Officer Probationary Officer Junior Officer Assistant Officer

Top Management

Mid Level Management

Junior Level Management

53

4.2 Management hierarchy of the Dhaka Bank Ltd

BOARD OF DIRECTORS

Managing Director

Deputy Managing Director (Operations)

Deputy Managing Director (Credit Operation& Change management)

EVP,

F&AD

SVP, Operations Division

SVP, Financial institution Division

VP, Personal Banking Division

VP, HRD

Senior Vice President

Vice President

VP

SVP, Audit & Change Management

Senior Assistant Vice President

Vice President

Ass. Vice President

FAVP

First Assistant Vice President

Assistant Vice President

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4.3 Management System

Since its journey as Commercial Bank in 1995 Dhaka Bank Limited (DBL) has been laying great emphasis on the use of improved Technology. It has gone to Online Operation System since 2003. And the new Banking Software FLEXCUBE was installed. As a result the Bank will able to give the services of international standards. As per Bangladesh Banks instruction BASEL II Implementation Team has been formed which will be responsible for proper implementation of Basel II capital adequacy guidelines in the Bank. The guidelines have been issued by Bangladesh Bank recently but the target date for implementation is 31st December 2009.

Management system DBL

Planning

Organizing

Leading

Controlling

1. Free enterprise and a competitive market system. 2. Long-term Profitability Plans. 3. Follow businessPlans, development Programs, Marketing Plans for their day-to Day activities.

1.Organizing process under the supervision of CEO. 2.Management Activities of the top Management is organized by the CEO. 3. Account rules and procedure, business Process & safeguarding Assets are secured and Observed.

1. DBL is leaded by its management team Namely MANCOM 2. The Management team are unique.

1.The regulatory authorities of the bank is designed & Operated.

55

(Management System of DBL (Dhaka Bank Limited)

4.4 Functions of The Dhaka Bank Limited

The Dhaka Bank performs all types of functions of a modern commercial bank which is generally includes: 1) Mobilization of savings of the people and safe keeping of all types of deposit account. 2) Making advances especially for productive activities and generally for the other commercial and socio-economic needs. 3) Providing banking services to common people through the undertakers of branches. 4) Handling of export and import trade and foreign remittances and with special support to export activities. 5) Introduce modern Banking services in the country. 6) Discounting and purchasing bills. 7) Providing various information, guidance and suggestions for promotion of trade and industry keeping in view of the overall economic development of the country. 8) Industrial finance for both capital machinery and working capital. 9) Finance relating to constructions of both commercial and residential. 10) Finance under small business of self employed clients. 11)Finance of farming and non farming activities to rural people including purchase of agricultural equipments. 12) Ensuing proper utilization of credit disbursed. 13) Developing new products. 14) Market surveys before making any finance. 15) Finance for small transport. 16) Monitoring and forecasting. 17) Developing marketing campaigns 18) Finance for household durables.

56

19) Work simplification studies. 20) Monitoring diversification of portfolio among different sectors. 21) Pricing and minimum size of transaction ship.

4.5 Functional Department At Head Office

Managing Director, ex-officio Director of the Board, is the Chief Executive Officer (CEO) of the Bank. Next in the organizational hierarchy is the Deputy Managing Director. Groups/ Divisions at Head Office report either directly to the Managing Director or through the Deputy Managing Director. The operations and activities at the Head Office are divided into twelve Groups including the office(s) of the (a) Board Secretariat and (b) MD's Secretariat. Each of the twelve Groups is headed by a Group Executive. Out of these twelve Groups three groups viz. (a) Law (b)Group (General-I) and (c) Group (General-II) report directly to the Managing Director. Other groups report through the Deputy Managing Director. All the Divisions/ Departments at Head Office are required to report to the respective Group Executives. Name of the Departments under each Group are given below:

Departments of Head Office: * Group (Operations-I):

1. General Credit Department 2. Credit Administration Department 3. Credit Information & Return Department 4. Project Finance Department 5. Lease Financing Wing.

* Group (Operations-II):
1. Overseas & International Banking Relation Department 2. Global Trade Service Department 3. Treasury Department

*Group (Operations-Ill):
1. Audit & Inspection Department

* Group Operations-IV):
1. Finance & Accounts Department 2. General Banking Department 3. Establishment Department

* Group (Operations-V):
1. Recovery Department-1

57

2. Recovery Department-2 3. Recovery Department-3

* Group (Operations-VI):
1. 2. Monitoring Department Compliance Department

4.6 Functions of the Managing directors

MEMBER OF EXECUTIVE COMMITTEE Directly supervise HRM department Directly supervise audit department Directly supervise major branches (which branches are more profitable) Directly supervise local office of Dhaka. Directly supervise operation division Directly supervise treasure department 4.6.1 Function/ responsibility of deputy managing director (business development) 1. Directly supervise personal banking 2. Directly supervise corporate banking 3. Directly supervise chittagong regional office. 4. Directly supervise 9 branches of chittagong. 5. Cluster banking 6. Directly supervise investment division 7. Syndicate banking 4.6.2 Functions/responsibility of deputy managing director (risk management) 1. Directly supervise training institute 2. Directly supervise credit department. 3. Foreign exchange risk management.

58

4. Directly supervise financial institute. 5. Asset liability management. 6. Internal control and compliance. 7. Prevention of money laundering.

4.6.3 Structure of Human Resource Department

HRM Manager

Senior manager

Junior manager

Assistant HRM manager

Officer

4.7 Election of director

The chairperson informed the shareholder in terms of Bangladesh bank BPRO circular no 12 and BPRD circular letter no 8 both dated April 26,2003 along provision of section 15 kaka and sub section (5) of section 15 kaka and sub section (5) of section 15 of the bank companies (amendment) act 2003 the following directors on completion of their tenure resigned from the directorship.

4.8 Responsibilities of Human Resource Management Employees:

HRM manager responsibility: 1. 2. 3. 4. 5. HRM planning Training Appraisal Salary Management Staffing 59

6. 7. 8. 9.

Interviewing Recruiting Grievance Managerial/ professional compensation

HRM Senior officer responsibility 1. 2. 3. 4. Total staffing word processing Recording Interviewing

HRM officer responsibility 1. 2. 3. 4. 5. 6. 7. 8. 9. Salary Bonus. Incentive Staff loan Job evaluation Training Suggestion plan Employee service. Testing.

HRM Junior officer responsibility 1. 2. 3. 4. 5. 6. 7. 8. Assist staffing program. Level management. Job description. Training Orientation. Reassignment. Termination. Special program.

HRM assistant responsibility 1. Assists HRM manager. 2. Different types responsibilities of HRM related.

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CHAPTER 5
HR PLANNING
OF

DHAKA BANK

61

5.1Human Resources planning:

5.5.1 Meaning of Human Resource Planning:
Planning is the most important and primary function of management. It is a process of selecting the organizational objectives and taking action to achieve those objectives. Planning is looking ahead. Planning must be realistic and workable. Planning of human resources is a major managerial responsibility. It is important because human resources provide a firm the competitive advantage. Human resource is a primary resource without which other resources cannot put into use. In the age of competition, firms are focusing their attention on employee knowledge and skill. Obviously, human resources are going to occupy the central stage of human activities, especially in the field of industry and business. In view of its importance in the organizational effectiveness, separate HRP departments have been set up in most of the important business organizations. Certainly, many organizations have voiced the idea that their human resources differentiated them from their competitors. The significance of human resources as a core competency was confirmed in a study of 293 U.S. firms. The study found that HR management effectiveness positively affected organizational productivity, financial performance and stock value (Huselid 1997). To achieve any goals, Hr requirement needs to be assessed, located and amassed. HRP is not mere assessment of the number of human resources required. An organization has to categorize HR as per their knowledge and skills and also ensure their balanced allocation.

62

Improper HRP may lead to overstaffing increasing direct cost cost of training, amenities. Under staffing also affect a production, morale and productivity. An organization does not own person as it does capital and physical assets; this resource is seldom given proper attention. Many managers gave failed because they have taken their human resources for granted. It is one of the most critical management undertakings of this decade.

HRP is a process by which an organization can move from its current manpower position to its desired manpower position. It, then, translates the organizations objectives and plans into the number of people needed to meet those activities. Through planning management makes a balance between demand for and supply of right number and kinds of people at the right time. It is a supply and demand calculation. Manpower is an asset; it is an asset which appreciates-which grows over time. Machines depreciate as time goes on.

5.1.2 Some popular definitions of HRP are given below:

Robbins (1998) defines HRP as the process by which an organization ensures that it has the right number and kinds of people at the right places, at the right time who are capable of performing their assigned tasks effectively and efficiently. In the worlds of Coleman Bruce (1997), HRP is the process of determining manpower requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization. According to the above definitions, HRP consists of the following elements. Establishing and recognizing the future job requirements. Identifying deficiency in terms of quantity. Identifying deficiency in terms of quality and specification. Identifying the sources of right type of man. Developing the available manpower. Ensuring the effective utilization of work force. 63

 A manpower plan must be a set of two plans. A manpower demand plan and a manpower supply plan.

5.2 Dhaka bank HRM Planning:

1. Free enterprise and a competitive market System. 2. Long-term Profitability Plans. 3. Follow business- Plans, development Programs, Marketing Plans for their day-to Day activities. 4. Promoting internal talent and potential, optimal, and effective process, and closeness to Dhaka bank staff are decisive factors in the ever changing, complex world in human resources that help us identity and retain the right the right people take to the bank forward into the future by transforming human resource to human capital. 5. More particular times is to win new talented people and create an attractive environment for high achievers, so that they can remain successful in the fiercely contended financial services marketplace. 6. HR activities pursuer a long term approaches that is in line with the market and employee driven. 7. The clear separation strategy from operational task, and advice that is professional and specific to the target group. 8. Attracting to keeping young, talented and highly potential people is essential to conserve Dhaka banks ability to thrive to the future. 9. Fill the vacant positions even better in future, and above all as quickly as possible, the bank will keep a precise record of all employees capability and potential as well as their goals and carriers aims by way of creating of talent management wing. 10. Dhaka will also able to show employees development prospects and carrier path that make bank as a branded employer over the long time in the market. These included the planning of carrier steps but also ensure achieving the organizations goal and objective as a team Dhaka bank in the days to come.

64

CHAPTER 6
RECRUITMENT POLICY OF DHAKA BANK

65

6.1 Recruitment:
Recruitment is the process of finding qualified people and encouraging them to apply for work with the firm. Recruiting is the process of discovering potential candidates for actual or anticipated organizational vacancies. Or from another perspective, it is a linking activity-bringing together those with jobs to fill and those with jobs to fill and those seeking jobs.

6.2 Recruitment process:

Vacant or new position occurs

Performing job analysis and plan recruitment effort

Generate applicant pool via internal and external recruitment methods

Evaluation applicants via selection process

Impress applications

Make offer

6.3 The recruitment process of Dhaka Bank:

Dhaka Bank recruiting process ensures that for every position available in the bank, there are a sufficient number of qualified applicants. These applicants include members of both sexes and various social group such minorities and disable workers.

66

Dhaka Bank knows that the recruitment is a complex and continuing process that demand extensive planning and effort. Dhaka Bank consider two factors for there recruitment process those factors are (1) Organizational factor (2) Environmental factors

6.3.1 Organizational factors:

Dhaka Bank thinks that the most important factor is the banks reputation in term of product and services. Overall the banks projects a certain image to the community at large, and this influence its ability to attract qualified workers. Dhaka Bank also thinks that good advertising and successful public relation efforts can increase community knowledge of the bank, raise public appreciation, and thus make a dramatic impact on recruitment. Dhaka Bank knows that the bank culture and climate are also important. Since many people hear job possibilities from friends or relative already working in bank, attitudes about the bank are passed along through this informal network. Dhaka bank also thinks that the recruitment cost is an important factor in recruitment.

6.3.2 Environmental factor:

Dhaka Bank thinks that the external environment influences recruitment success in a various ways. Most obviously, the condition of the labor market affects the supply of the qualified applicants. If the bank cant find enough applicants in country then bank needs search abroad. Competition from other companies can reduce the pool of qualified workers or raise salary expectations beyond what the Dhaka Bank is willing to pay.

67

Dhaka Bank thinks economic trends can influence both the number of people pursuing certain occupations and the demand for their services. In this century, the repaid pace of technology change has accelerated these trends. Dhaka Bank also think that social attitude about particular types of employment will also affected the supply of workers. If a job is considering uninteresting, oppressive or law in status applicants will shun it unless the salary are extremely attractive. Finally Dhaka Bank aware about the federal and state regulation concerning equal employment opportunity and affirmative action set the framework within which a recruitment program must function. 6.4 Managerial role of Dhaka Bank about recruitment: In Dhaka Bank responsibility for overall recruitment process normally is assigned to human resource manager and human resource staffs. They responsible for designed and implementing a recruitment program that will meet banks personal needs while complying with all legal recruitments. This responsibility include finding source of applicants, writing, and placing advertisement, contracting university, establishing procedures to guarantee equally employment opportunity and administering the fund Dhaka Bank has budgeted for recruiting. But this goal probable would not be attained without cooperation of other managers. Who are the best positions to predict the need of other own departments? They are responsible for deciding how task should be accomplished and what kinds of people are needed to fill each types of position. They can often anticipate retirements, resignation and other kinds of vacancies and can determine whether any of other current staff members are to for promotion. Typically when a vacancy occur the appropriate supervisors or managers informally or formally appraise HRM manager or HRM departments.

68

6.5 RECRUITMENT AND SELECTION POLICIES OF DHAKA BANK: 1.Have they used any personnel requisition form? Which forms do the other department managers fill or suppliers for fill their vacancy?

In Dhaka Bank there is no requisition form actually when any department vacant any position, the department heads or branch in charge informally appraise that they need work people. The branches in charges or department head also mention which position vacant or which position people they need. Some times when any department or branches vacant any position or they think, they need any extra people for their operation. They formally appraise the HRM department by letter which letter they mention details. 2. Which vacant position fill from the outside and which position fill from the inside? Dhaka Bank recruits people internally for some positions and Dhaka Bank also recruits people from outside for some position. About those matters describe bellow briefly: a) Emergency situation (when the bank needs to fill any vacant position within short time) Dhaka Bank relies internal from any department or any branches which department or branches have extra employee or less has work pressure. Another side sometime bank realizes on the internal recruiting for experience position or branch in charges or superior position. Which position need experience people and truthful person and very responsible person for that position so the bank always tries to recruit a person for that position within the bank sometimes the Dhaka bank chose internal recruiting when the vacant position required more training or more orientation about

69

bank environment or job function. And those types training and orientation are very costly and time consuming. So the Dhaka Bank tries to recruit people for that position within the bank. And the bank thinks that for those types of position the internal recruiting is cost effective than the outside recruiting. Because if the bank recruit people with in the bank for those position bank need not extra training and orientation internal people. Because they have enough training for the bank daily operation and faction and they know enough about this bank and the working environment. Further the bank considers the internal recruiting for superior or managerial position when the bank see the some attractive person exist in their bank. Who have some special knowledge, expertise skill and scare skill. And bank some time depend them for many tasks and bank operation. And if Dhaka bank think or sees that he or she could be leave from the bank to another organization if they do not get promotion within short time or he\she is staying one position for the long time. So the bank considers that attractive persons to transfer higher position their leaving from the bank. b) Actually Dhaka bank consider all position for outside recruiting when Dhaka Bank are expanding day by day and Dhaka banks branches also expanding. So Dhaka bank has been needed many people for position. But internal positions are normally proper assign in different department and different branches. So Dhaka bank is unable to recruit the needed employees from the outside. The Dhaka bank normally recruits people as officer, junior officers, and seniors officers for Dhaka banks different department and different branches from outside. Sometimes Dhaka Bank recruits people as a higher position employees or attractive positions from abroad. When those position requirement qualification and skill are

70

not present in our country, Dhaka Bank realizes on abroad for recruiting those position people. Why Dhaka Bank chooses the internal recruiting for recruiting process? Dhaka Bank thinks internal recruiting is very important for their banking goose performance, effective operation and cost reduction. Dhaka Bank always considers some of the advantages of internal recruitment. Those advantages of internal recruitment are following: i) ii) iii) iv) v) vi) vii) Dhaka Bank thinks that internal employees performance in jobs are more predictable than the outside recruitment. Dhaka Bank thinks that the internal recruitment is saved more time and cost than outside recruitment. Internal recruitment also serves to raise the employees moral and improve the bank climate. Internal recruitment also encourage individual employee who are ambitious. It is good public relation. It improves the probability of a good selection, since information on the individuals performance is readily available. Dhaka Bank knows that when carefully planned, promoting from within can also act as a training device for developing middle and top level managers. Why Dhaka Bank chooses the outside recruiting for

recruiting process? Internal recruiting may be impossible to fill a position with a member of its own staff. Internal recruitment may be possible but inadvisable. If fill a gap in one department means creating an equally critical gap another. The best course may be to recruit immediately from outside.

71

Dhaka Bank expanding rapidly the banking branches are increasing day by day. So Dhaka Bank needs more people for their operation and their business. But in the bank those number people are impossible. It is impossible to collect those numbers of people from inside of the bank. Dhaka Bank knows if they emphasize internal recruiting from internal other branches or other department then other branches or other department may be falling in difficult for creating gap. So Dhaka Bank is to recruit people majority parent from the outside. Because the world is changing rapidly and technology is changing simultaneously so every organization need new technology expertise people from the outside to compete with the competitors. What are the policies exist in the HRM of Dhaka Bank for the internal recruitment? Method of internal recruiting: Generally Dhaka Bank follows two methods for internal recruiting: i) ii) Employee referral Skill inventory

i) Employee Referral: Sometimes Dhaka Bank recruits employees by employee referrals and employee recommendations. In the Dhaka Bank individuals who will perform effectively on the job is a recommendation from a current employee. Dhaka Bank HRM manager and top management like employee recommendation because employees rarely recommend someone unless they believe that individuals can perform adequately. Sometime Dhaka Bank HRM manager and top management accept department heads or branches in charge recommendations for any individual. Employee referrals also

72

may have acquired more accurate information about their potential jobs in Dhaka Bank. In doing so bank and employee benefit, the employee receives a reward and the bank receives the qualified candidate without major expense of an extensive recruiting search. Actually Dhaka Bank uses the employee referrals and employee recommendations for their shifting and dry promotion in the internal recruiting. Sometimes Dhaka bank considers the employee referrals and employees recommendations for monetary reward and monetary promotion when top management or superior recommend for any employee for his or her good performance. Otherwise Dhaka bank only transfer one position to another position or one department to another department without benefit by employee referrals or employee recommendations when HRM manager and top manager see that one department needs extra employee for their operation or more pressure and same time other department may have less pressure or extra employee. So HRM manager and top manager transfer employee one department to another department without benefit. Because Dhaka Bank thinks if they consider internal recruitment they benefit by employee recommendation or employee referrals. It could be leaded that recommences may confuse friendship with job performance competence. Because individual often like to have their friends or relative join them at their place of employment. For this reason current employee could be disappointed who are qualified or more ambitious and it could be leaded more turnover. So Dhaka Bank always aware about matters. Dhaka Bank also think that employee referrals for internal recruitment may also lead nepotism that is hiring individuals who are related to persons already employed by the bank.

73

So Dhaka Bank rarely gives employee benefit promotion or monetary promotion by employee referrals and employee recommendations for their dry promotion and only transfers one position to position among departments. Its formally communication among the managers or departments or branches can lead to discovery that the best candidate for a job is already working in a different section of the bank. This way to find applicants within the bank is through employee referrals and employee recommendations by the other departments. HRM of Dhaka Bank and top management of Dhaka Bank think that the recommended often gives the applicant more realistic information about the job than could be conveyed through newspaper advertisements. HRM department think that this types of information reduce unrealistic expectations and increase job survival. They also think that employee referrals are an excellent means of locating potential employees in those hard to fill positions. As a result of these result pre selection factors, employees referrals tend to be more acceptable applicants, to be more likely to accept of offer if one is made, and once employed, to have a higher job survival rate. For example: Dhaka Bank chooses IT professional, computer programmer by employee referrals and employee recommendations for business operations help. ii) Skill inventories: Dhaka bank HRM department developed computerized skill inventories of their employees. Information on every employees skills education background, work history and other important factors is stored in a database. It is real to identify employees with the tributes needed for a particular job. Sometime it is the managing director or managing directors things that infernal some employees or any employee are quality able or eliminable for vacant position then the managing directors or deputy managing directors chose that eligible employee for that position.

74

6.6 Method of the outside recruiting in Dhaka Bank:

There are some methods for outside recruitment in the Dhaka Bank. The Dhaka Bank normally follows those methods for theyre outside recruiting. Those methods are following: a. Advertisement on local papers. b. One line system or cyberspace recruiting c. Curriculums vita placement or unsolicited applicants. d. e. Personal contract Internship recruiting

a) Advertisement on local papers:

Dhaka Bank advertises on the local papers for their recruitment. Although news paper advertisement is a traditional method for the outside recruiting. But Dhaka bank has to prefer local paper advertisement. There is some reason for local paper advertisement. Dhaka Bank wants to communicate large number of people for their vacancy position. Dhaka Bank is expanding day by day. So they need more people for their operation. Actually when Dhaka Bank become more vacancy position or need more extra people for their operation, they advertise local paper to communicate more to the people. Dhaka Bank thinks Internet communication is not enough expanding in Bangladesh, a few number of people know Internet program and Internet communication. Another side is when Dhaka Bank needs experience people for their operation and higher-level positions people. Because those types of people are not available in the home so Dhaka Bank wants to communicate more to the people that bank has vacancy for that position.

75

Some time Dhaka Bank advertises local paper by use blind box for outside recruitment. They do not mention their bank name. But it is rare used for their outside recruitment. Actually they use blind box in the paper advertisement for low position recruitment. Bank wise to less publicize for that position. Dhaka Bank advertises local English and bangle newspaper. They always prefer more popular and qualified papers which papers are read high-educated people. Bank can communicate accurate people for their recruiting. For example: Dhaka Bank prefers daily star, observer, prothom alo etc. Dhaka Bank of HRM department would like to make effective advertisement. So HRM manager of Dhaka Bank aware some the thing about the advertisement during newspaper advertise. Those things are following: i) ii) iii) iv) v) they provide enough information about the job so potential applicants can determine whether they are interested or qualified. They provide a job title and a description of job duties. This information draws directly from the job description. They include specific recruitments a job incumbent is require to process. It includes educational level, prior experience and specific competencies or skills. They disclose any pertinent information about job that an applicant should know about. They make sure advertise is properly written, contains no grammatical or punctuation errors, and is easy to read.

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Dhaka

bank

advertised

daily

star,

prothom

alo

this

employment advertisement at January 1, 2010.

CARRERE
OPPORTUNITY
In capital market services
Dhaka Bank Ltd, a leading private sector commercial bank providing high qualified products and services backed by the state of the art technology and a team of high motivated personnel committed to developing excellent in banking is locking for an investment banking professional to head its Capital Market Services division: HEAD CAPITAL MARKET SERVICES: VICE PRESIDENT / SENIOR VICE PRESIDENT Requirements: 10-12 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Firm knowledge about Capital market, Bond market, Merchant Banking, Issue Management/underwriting as well as adequate concept on securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Well conversant with investment products and ability to develop & executive effacement professional management strategy. Professional demeanor & strong communication skill both in verbal & written. Conceptually sound in transaction / trading on securities, brokerage & merchant banking operations (equities, bond , debentures etc) Good understanding of capital market trend analysis/ forecasting.

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DEPUTY HEAD CAPITAL MARKET SERVICES: PRINCIPLE OFFICER TO ASSISTS, VICE PRESIDENT Requirements: 7-8 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Well conversant with investment products for raising finance. Ability to develop & executive sound Portfolio management strategy. Sound knowledge about Capital market, Bond market, Merchant Banking securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Excellent communication skill both English and bangle. Team building capability and ready to work under challenging environment.

TRADER & SETTLEMENT OFFICER: ASSISTANT OFFIXER TO SENIOR OFFICER Requirements: 2-6 years experience in the relevant field. Should be the authorized dealer. Good and Sound track record professional and educational career having masters preferably in business discipline. Computer literacy is essential. Good communication skill both English and bangle.

Posting: any were in Bangladesh.

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Attractive remuneration will be offered to the deserving candidate commensurate with their experience. If you are the right person, please feel free to apply along with your detail resume and recent photograph Addressed to the head of Human Resource Division. Dhaka bank ltd. Biman Bhaban, 1st floor, 100 Motijheel C/A, Dhaka-1000. Submit By, January 6, 2010. Also please mention the name of the position on the top of the envelope, for which you are applying, Only short listed candidates will be called for interview. Dhaka bank reserves the right to accept or reject my application without mentioning any reason whatsoever.

b) One line or cyberspace recruiting:

Dhaka Bank thinks that newspaper advertisement is a traditional method for recruiting. So now they recruit employees by one line program. Dhaka Bank uses own web side for the recruitment process. Dhaka Bank did contract with www.bdjob.com for their one line recruitment. But Dhaka Bank has a plan to develop own web side program for their one line recruiting. Dhaka Bank did contract with www.bdjob.com temporary. Because bank own one line recruitment program plan are forwarding. Dhaka Bank use www.bdjob.com response from which from candidates have to fill this from for applies to the Dhaka Bank. So applicants do not need send a separate resume page and hit the submit button. Dhaka Bank wises to seek more aggressively job candidates for their bank by one line search. Dhaka Bank wises to seek dynamic candidates, expertise candidate by on line recruitment. They actually want those candidates who are first people they try to adopt first world and introduce world change. Dhaka bank often uses one line searching for their provisional officers. Dhaka bank also wises to recruit fresh graduates or postgraduates by one line recruiting. They wise to recruit qualitative fresher by Internet searching. They think that Internet searching is appropriate to recruit fresher.

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Now Dhaka Bank think that Internet searching program reduce the paper work and less time consuming and less costly. Because if they use newspaper advertise for their recruitment or use other methods for their recruitment, then HRM department has to more paper work for their recruiting. And they need more people for those activities. Dhaka Bank HRM in charge also thinks that newspaper advertisement and other method required more time for processing. She thinks that if they advertise on the newspaper then they have to advertise two or three local newspaper. So they receive large number of application and those large applications have to posting in computer for application screening. For those activities needed more people and more time to process it. But if they use Internet searching they do not need more paper work for their initial screening. It saves more time and paper works. It also minimizes costs. Dhaka bank has plan for future they will emphasize on one line recruiting at future. Because they think Internet line and Internet system are not expanded enough in our country. So they only use Internet searching for some types of employees recruiting.

Practice of Dhaka bank advertises at Internet: Dhaka bank advertises at Internet by the www.bdjob.com at 2nd January, 2010.

CARRERE
OPPORTUNITY
In capital market services
Dhaka Bank Ltd, a leading private sector commercial bank providing high qualified products and services backed by the state of the art technology and a team of high motivated personnel committed to developing excellent in banking is locking for an investment banking professional to head its Capital Market Services division:

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HEAD CAPITAL MARKET SERVICES: VICE PRESIDENT / SENIOR VICE PRESIDENT Requirements: 10-12 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Firm knowledge about Capital market, Bond market, Merchant Banking, Issue Management/underwriting as well as adequate concept on securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Well conversant with investment products and ability to develop & executive effacement professional management strategy. Professional demeanor & strong communication skill both in verbal & written. Conceptually sound in transaction / trading on securities, brokerage & merchant banking operations (equities, bond , debentures etc) Good understanding of capital market trend analysis/ forecasting.

DEPUTY HEAD CAPITAL MARKET SERVICES: PRINCIPLE OFFICER TO ASSISTS, VICE PRESIDENT Requirements: 7-8 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Well conversant with investment products for raising finance. Ability to develop & executive sound Portfolio management strategy. Sound knowledge about Capital market, Bond market, Merchant Banking securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Excellent communication skill both English and bangle.

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Team building capability and ready to work under challenging environment.

TRADER & SETTLEMENT OFFICER: ASSISTANT OFFIXER TO SENIOR OFFICER Requirements: 2-6 years experience in the relevant field. Should be the authorized dealer. Good and Sound track record professional and educational career having masters preferably in business discipline. Computer literacy is essential. Good communication skill both English and bangle.

Posting: any were in Bangladesh. Attractive remuneration will be offered to the deserving candidate commensurate with their experience. If you are the right person, please feel free to apply along with your detail resume and recent photograph Addressed to the head of Human Resource Division. Dhaka bank ltd. Biman Bhaban, 1st floor, 100 Motijheel C/A, Dhaka-1000. Submit By, January 6, 2010. Also please mention the name of the position on the top of the envelope, for which you are applying, Only short listed candidates will be called for interview. Dhaka bank reserves the right to accept or reject my application without mentioning any reason whatsoever.

c)

Unsolicited

applicants

or

curriculum

vita

placement:

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Sometime Dhaka bank recruits people by the C.V. placement from unsolicited applicants. Normally unsolicited applicants contract themselves with HRM department and they place their C.V. HRM department of Dhaka Bank receives those C.V. and they keep in file those C.V. for next recruiting consideration. Those individuals they have adequate skills and main candidates for a position in the bank. Dhaka Bank HRM department doesnt receive all unsolicited applicants C.V. they only accept that C.V. whose have special knowledge, qualification, more experience in banking sector. If Dhaka Bank HRM manager thinks an unsolicited applicants C.V. is important for their banking operation at future, then she receives that C.V. and keeps in file HRM department. When Dhaka Bank any position become vacant related with unsolicited applicant C.V. HRM manager considers that person for recruiting that position. Generally, an unsolicited applicant will have to be told that no appropriate positions are currently available. By the time a position does become open, the applicants may have accepted work elsewhere. Dhaka Bank HRM manager never careless unsolicited applicants because she beliefs sometime unsolicited applicants could be helpful to place right people to right place in their bank. She also beliefs it reduce cost of recruitment, because they dont need advertise on newspaper or Internet by pay. Normally Dhaka Bank uses this method for high-level position or experienced position not provision officer and fresh graduate or post graduate. Dhaka Bank accepts unsolicited applicants C.V. only by e-mail and in person. E-mail: unsolicited applicant can send their C.V. to HRM department by email. HRM of Dhaka Bank always check those types of C.V. if they see some or any C.V. is attractive then those C.V. are kept in their field for future recruitment.

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In person: normally unsolicited applicants come to HRM department of Dhaka Bank with their own interest and they place their C.V. The HRM department of Dhaka Bank keeps those C.V. in their file at future recruiting consideration.

d) Personal contact:
Sometimes Dhaka Bank recruits some types of employees by the personal contract with the other organization employees. Actually top management did this types contract, sometime top management of Dhaka Bank contract with other firms or other banks current employees who will leave their current job. This types personal contract recruitment only occur for superior position not others position. And it is secret recruitment process. This types of recruitment process involved only top management and HR manager.

e) Internship method:
Internship is another method which method is used Dhaka Bank recently. Now Dhaka Bank is interested to give internship opportunity to graduate and postgraduate students. Normally Dhaka Bank gives this opportunity for business students and engineers students, economics student. So students also get opportunity to gather experience from Dhaka Bank. Bank gives some remuneration to internship holder for their service. Dhaka Bank HRM thinks that it is an excellent opportunity to assess student capability and potential. Now Dhaka Bank HRM recruits people from their internship holders. Bank staffs can observe their performance capability directly. Bank assigns internship holders different branches or regional local officers and head office those office staffs internship holder and report their performance to HRM department. And HRM manager and top management select them as a regular worker to see their performance report.

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Bank HRM manager and top management selects as a regular worker from internship holders after final assessment and interview. Dhaka Bank gives internship opportunity for three to four month. Although it is expensive for the bank but bank would like to recruit qualified worker by internship method. But bank gives limited number of internship opportunity to student in a year.

f) Recruitment from abroad:

Dhaka Bank also recruits people from abroad. But it is rare case to recruit people from abroad. Sometime the top management recruits some types of people for their business operation. It only occurs when some types of knowledgeable people or some expertise people or some types of experience people are not present in our home. Top management of Dhaka Bank rely on recruitment from abroad for their operation. Dhaka Bank top management recruits people from abroad by some international recruitment firm. Dhaka Bank knows it is expensive than in home recruitment. But sometimes they have to do it for some scare knowledge or expertise in home.

Does

the

HRM

department

of

Dhaka

Bank

follow

any

recruitment alternatives methods? Yes Dhaka Bank HRM department follows two recruitment alternative methods for their operation. Those methods are following:
i. ii. Independent contractors Temporary help service

i) Independent contractors: Sometime Dhaka Bank prefers independent contractors bases job handover to individuals firm for some types of tasks in spite of direct recruiting. Dhaka Bank top management contract with individual or any firm to accomplish some types of job or task which types

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of tasks the bank are less interest to accomplish own operation. Normally Dhaka Bank may hire independent contractors to do very specific work at location on or off the banks premises. Dhaka Bank also hires individuals to do work in their bank location as a contract bases. This type of contract is time bases contract. This type contract is top-level position in the bank. bases. ii) Temporary help service: Dhaka Bank also hires individuals as a temporary bases worker for short time. Dhaka Bank thinks that sometime temporary employees are particular valuable in meeting short term in fluctuation in HRM needs. Sometimes Dhaka Bank faces some types of worker needs for short time. They think if they recruit people to do those types then they face it is expensive for the bank. Bank also observe if they hire individuals to do those tasks as a temporary bases then the bank will be more benefited than permanent recruitment. So Dhaka Bank wise to hire individual to do those tasks for the short time as a temporary bases. Normally Dhaka Bank hires temporary workers for monthly such as a three-month or six months. When Dhaka Bank faces extra pressure for their any occasion or operation; they need extra workers for the short time. That time banks hire temporary workers to do those works. For example: During the bank annual report and annual budget bank need some extra computer programmer. For example: Managing director of Dhaka Bank is doing his job as a contract

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CHAPTER 7
SELECTION PROCESS OF DHAKA BANK

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7.1 Selection process of Dhaka Bank:

What is selection process?
Selection process: Once an effective recruitment program has supplied enough job applicants, the organization faces the task of choosing the best ones for specific jobs. The selection process involves judging candidates on a variety of dimensions, ranging from the concrete and measurable (for example, years of experience) to the abstract and personal (for example leadership potential). To do this, organizations rely on one or more of number of selection devices, including application forms, reference check, tests, physical examinations, and interviews. Any of these devices must satisfy strict requirements of relevance and legality, and their effects on the individual applicant and the organization, as a whole must be considered carefully. Dhaka bank HRM role for the selection process: Dhaka Bank human resource department is responsible for designing the selection system and managing its every operation. Dhaka Bank human resources managers, in cooperation with other managers or departmental head and top management, largely set the overall strategy, they are likely to be influential in deciding, for example, whether the department or branch should focus on choosing people who are the best qualified for the current vacancies or those who have the greatest long term potential. HRM manager also decides how the guidelines for equal employment opportunity should be met and whether the bank needs outside legal assistance in formulating its affirmative action plan. Typically, screening of particular applicants to determine who will then be sent to department heads or branch manager or team member for human resource department performs final evaluation.

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What is the selection process of Dhaka bank? Dhaka Bank has some selection process. After requirement process complete Dhaka Bank selects people from applicant peoples by use those process. Those processes are following: 1. Initial screening 2. Written examination 3. Comprehensive interview. 4. Background investigation or examination 5. Medical and physical examination 6. Permanent job offers

7.2 FOUNDATIONS OF SELECTION OF DHAKA BANK:

Initial screening

Writing Examination Comprehensive Interview

Back ground Investigation or Examination if required Reject Applicants Medical/Physical Examination Permanent Job offers

Conditional job offer

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(1) Initial screening:

After completed the recruitment process Dhaka Bank starts their selection process. Initial screening is the first steps of Dhaka Bank selection process. After receiving respondent applicant Dhaka bank HRM department starts their initial screening. They are prepared to initiate a preliminary review of potentially acceptable candidates. After completed successful recruiting Dhaka bank HRM department faces with a number of potential applicants. Based on the job description and job specification, some of these respondents can be eliminated. Factors that might lead to a negative decision at this point include inadequate or inappropriate experience, or inadequate or inappropriate education. There might also be other red flags identified, such as gap in the applicants job history, many brief jobs, or numerous courses and seminars instead of appropriate education. Dhaka Bank also uses the provision or screening interviews procedure. The screening interview is also an excellent opportunity for Dhaka Bank HRM to describe the job in enough detail so the candidates can consider whether they are really serious about applying. Sharing job description information with the individual frequently encourages the unqualified or marginal qualified to voluntarily withdrew from candidacy. It is helpful for the bank HRM department because they are to give less labor to initiate screening. Now Dhaka Bank receives all respondent applicants by mail so initial screening take less time than receiving respondent paper applicants. (2) The comprehensive interview: Those applicants who pass the initial screening and require tests are typically given a comprehensive interview. Dhaka Bank HRM department is prepared to do comprehensive interview after completing initial screening. HRM manager interviews In Dhaka Bank applicants, branch in charge, department head and top management.

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Dhaka Bank HRM department is designed the comprehensive interview to probe area that can not be addressed easily by the application from and test such as assessing ones motivation, ability to work under pressure, and ability to fit in with the bank. However, this information must be job related. During the comprehensive interview interviewers ask the applicants about the majority percent job related. Dhaka bank HRM department thinks that the topic covered should reflect the job description and job specification information obtained in the job analysis. This mean thats not only the obvious illegal questions should be avoided, so too should inappropriate questions. Dhaka Bank HRM arranges two types plan for interview to select applicants. One is Dhaka Bank HRM department arranges interview for probationary officer after completing written test. Those applicants are qualified in the written test who is invited for the interview. Dhaka Bank almost twenty percent applicants are selected for the interview after initial screening. Another side when Dhaka bank needs senior officer or experience position, HRM department arranges only interview with applicants after initial screening. Another side, when Dhaka bank needs senior officer or experience position, HRM department arranges only interview with applicants after initial screening. HRM department does not need to arrange written test for the selection. During the interview, several interviewers are present before the individual candidate. Dhaka Bank HRM department do total plan for the interview process. Dhaka bank interview plan follow some predetermined pattern where in both the questions and the expected responses are identified. The interview can also be designed to create a difficult environment in which the applicant is put to the test to assess his or her confidence levels. Background investigation:

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This step in the process is to undertake a background investigation of those applicants who appear to offer potential as employees. Dhaka Bank background investigation form is intended to verify that what was stated on the application from is correct and accurate information. This can include contacting former employers to confirm the candidates work record and to obtain their appraisal of his or her performance, contracting other job-related and personal references, verifying the educational accomplishments shown on the application. Dhaka Bank HRM department verifies an individual legal status to work in the country, checking criminal record and even using third party investigators. There is documentation that supports the premise that a good predictor of an individuals future behavior is his or past behavior. Dhaka banks HRM find out as much as possible about its applicants before the final hiring decision is made. But getting the needed information may be difficult, especially when there may be a question about invading ones privacy. Dhaka bank is conducted two methods for background investigation, the internal investigation and external investigation. In the internal investigation, Dhaka bank HRM undertakes the task of questioning former employers and personal references. On the other hand, external investigation typically involves using a referencechecking firm. However it is done, documentation is the important element. Medical and physical examination: HRM of Dhaka bank thinks that medical and physical examination indicating an applicant is physically fit for essential job performance. Dhaka bank HRM department wants medical clearance be required to indicate that the applicant is physically fit for the essential job element, bank always be able to show that it is a job related requirement.

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There is another purpose for the physical examination to show that minimum standard of health exist to enroll in bank health and life insurance program. Additionally, bank uses this examination to prove base data in case of an employees future claim of injure on the job. Dhaka bank requires applicants to submit to a drug test. One last event fits appropriately under medical examination: the drug test. Job offer: Those individuals who perform successfully in the preceding steps are now considered to be eligible to receive the employment offer. Dhaka Bank HRM department makes the final employment offer. The manager in the department and branch makes the actual hiring decisions where the vacancy exists.

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CHAPTER 8
JOB DESIGN OF DHAKA BANK

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8.1 What types of job description and job specification HRM of Dhaka bank makes for their recruitment and selection? And which thing is involved in the job description and job specification? Job description: Dhaka Bank of HRM is to establish job description through job analysis before start recruitment and selection process. Dhaka Bank of HRM department think that a job description is a written statement of what the job holder does, how it is done, under what condition it is done and why it is done. They also belief job description include the job title, the duties to be performed, characteristics of the job, and the authority and responsibilities of the job holder. Dhaka Bank HRM department belief job description is very important for recruitment and selection process. Because job description acts as important resources for: (1) Describe the job potential candidates by in written advertisements or interviews. (2) Guiding newly hired employees in what they are specially expected to do. Job Specification: Before starts the recruitment process HRM of Dhaka Bank are to establish job specification. They think job specification states the minimum acceptable qualifications that the incumbent must process to perform the job successfully. These types of information acquire through job analysis. They establish a job specification that involved the knowledge, skill, education, experience, certification and abilities needed to do the job effectively. For every position they have to develop individual job specification through the job analysis before recruitment process. Without establish job specification they never go recruitment and 95

selection stage. HRM of Dhaka Bank belief that individual possessing the personal characteristics identifies in the job specification should perform the more effectively than those lacking these personal characteristics.

What are important of job description and job specification to Dhaka Bank?
Important of job description and job specification to HRM of Dhaka Bank: HRM of Dhaka Bank thinks that job description and job specification are helpful throughout the recruiting and selection process. It are to use in writing advertisements for job opening and writing letters to people that are in a position to refer candidates. HRM department provide its the recruiters, the selection interviewers and interviewees with a basic outline of the job for which candidates are being considered. Job description and job specification are also useful in orienting and training new employees. It provide an overview of the activities that need to be carried out, which can be explained to the employees more detail by the supervisor and training people. HRM of Dhaka Bank wants to make new employees and supervisors understand of responsibilities by job description. HRM department use it for their development of performance standards. Performance standards expanded the job description and establish in measurable terms. How well the job is to be performed. HRM department belief that job description and job specification are also relevant to the development of performance appraisal forms, which are frequently designed to include some of the major categories covered in the job description. Job description and job specification are also providing basic information for job evaluation. Because job evaluation is the process of determine the relative worth of jobs within the Bank to establish wages and salaries.

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HRM of Dhaka Bank thinks that job description can be used to think through and develop the avenues for transfer and promotion that lead to advancement in the organization. Proper job description can contribute to a dialogue between supervisors and subordinate or group discussion when it is necessary to clarify mutual expectations.

8.2 PURPOSE OF JOB DESCRIPTIONS AND JOB SPECIFICATION:

Recruiting, Interviewing and Selection.

Orientation and Training

Job Description and Specification

Performance Standards and Goal Statement.

Performance Appraisal Forms

Job Evaluation

Clarification and Renegotiation of roles

Career Progression Ladders

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Before decided Job description and job specification the HRM of Dhaka Bank is to do the job analysis. Job analysis is a systematic exploration of the activities within a job. It is technical procedure used to define the duties, responsibilities and accountabilities of a job. Job analysis can be defined as obtaining information about the job; generally job analysis involves the following steps: i) ii) iii) iv) v) Collection and recording job information Checking the job information accuracy Writing job description based on the information. Using the information to determine what skill, abilities and knowledge are required on the job. Updating the information from time to time.

8.3 How to do job analysis in the Dhaka Bank? And

who are involved in the job analysis?

In Dhaka Bank there are no methods to use for the job analysis. Generally department in charge and branch in charge are responsible to do job analysis for their department or branch vacant position. Department or branch senior officer assists department or branch in charge to do job analysis. When any position is vacant through promotion or turnover in Dhaka Bank, branch in charge or department in charge determines what types of duties, responsibilities and accountabilities required for the vacant position. And they report to HRM department about job responsibilities and job requirement. Because Dhaka Bank HRM department thinks that department or branch in charge know very well what types of activities and responsibilities require for the vacant position. And subordinate give their opinion from their experience. Another is that when any position is vacant for employee promotion, department in charge can decide job activities and

98

require qualification from previous job description /job responsibilities and job specification which one decided for vacant position before. Sometimes branch in charge handover senior officer job analysis activities and senior officer decided job responsibilities and require qualification through individual interview or group interview with subordinate. Deciding job responsibilities and require qualification for vacant position department in charge review that report and if correction necessary then department in charge correct the report. Finally department in charge inform HRM department specific job description /job responsibilities for the specific vacant position. Dhaka Bank job analysis steps: PRASE-1 Scope of the project: 1. decide purpose of the project 2. Decide which job to include PRASE-2 Method of job analysis: 1. Decide what types of data are needed 2. Decide identity sources of job data. PRASE-3 Data collection and analysis: 1. Collection job data analysis. 2. Report result to the organization. 3. Recheck job analysis data periodically. PRASE-4 Assessing job analysis methods: 1. Evaluation results against criteria of benefits, cost and legality.

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8.4 HOW ALL PERSONNEL FUNCTION IMPACT PERSONNEL PLANNING IN DHAKA BANK
Overall Bank Plans

Job Analysis

What staff do we need to do the job?

What staff is available within our bank?

Is there a match? What is impact on wages and salary program? If not what types of people do we need and how should we recruit them?

1. Performance appraisal 2. Bank data banks 3. Training 4. Employee & Management development

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CHAPTER 9
TRAINING PRACTICE OF DHAKA BANK

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9.1 Training: 9.1.1 Meaning:

Every organization, like Starbucks, needs to have well-adjusted, trained, and experienced people to perform the activities that must be done. As jobs in today's dynamic organizations have become more complex, the importance of employee education has increased. When jobs were simple, easy to learn, and influenced to only a small degree by technological changes, there was little need for employees to upgrade or alter their skills. But that situation rarely exists today. Instead, rapid job changes are occurring, requiring employee skills to be transformed and frequently updated. In organizations, this takes place through what we call employee training. Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve the ability to perform on the job. We typically say training can involve the changing of skills, knowledge, attitudes, or behavior. It may mean changing what employees know, how they work, their attitudes toward their work, or their interaction with their coworkers or supervisor. For our purposes, we will differentiate between employee training and employee development for one particular reason. Although both are similar in the methods used to affect learning, their time frames differ. Training is more present-day oriented; its focus is on individuals' current jobs, enhancing those specific skills and abilities to immediately perform their jobs.26 For example, suppose you enter the job market during your senior year of college, pursuing a job as a marketing representative. Although you have a degree in Marketing, when you are hired, some training is in order. Specifically, you'll need to learn the company's policies and practices, product information, and other pertinent selling practices. This, by definition, is job-specific training, or training that is designed to make you more effective in your current job.

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Employee development, on the other hand, generally focuses on future jobs in the organization. As your job and career progress, new skills and abilities will be required. For example, if you become a sales territory manager; the skills needed to perform that job are quite different from those required for selling the products. Now you will be required to supervise a number of sales representatives, requiring a broad-based knowledge of marketing and very specific management competencies like communication skills, evaluating employee performance, and disciplining problem individuals. As you are groomed for positions of greater responsibility, employee development efforts can help prepare you for that day.

9.2 Training Methods:

This section considers the choice of methods for employee training. With training objectives defined and learning principles in mind, the trainer must choose appropriate training methods and design the sequence of events in the training program. Perhaps the first decision to be made is whether to conduct the training on the job or away from the job. In many cases, the decision is to do some of both Figure diagrams two training options. In each case, the right circle represents. Figure: 1.1 Deciding where and How to train

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Source: John W.Newstrom and Mark Lengnick Hall one Size Dose Not Fit All Reprinted from Training and Development. Copyright June 1991, What an employee already knows when hired. The left circle is what he or she needs to Know to be a fully effective employee. If the person was hired because he or she already possessed some relevant skill and knowledge, there will be overlap between the circles, and this content need not be trained. The remaining area of job skill is what the employee must learn. Some aspects of this can be learned in formally by on-the-job practice and informal coaching, whereas some should be taught formally. The formal instruction could be structured on-the-job off training, the-job classroom training, or a combination of both. Figure diagrams a job that is largely learned on the job, perhaps waiting tables in a pizza restaurant. Figure shows a job in which more off-the-job training is requiredperhaps tax return preparation. The final increment in speed, confidence, and dealing with un usual nuances always happens with on-the-job practice, but many principles and laws must first be learned in the classroom.

9.2.1 Off-the-Job Training

Off-the-job training is conducted in a location specifically designated for training. It may be near the workplace or away from work, at a special training center or a resort. Conducting the training away from the workplace minimizes distractions and allows trainees to devote their full attention to (material being taught however, off-the-job training programs may not provide as much transfer of training to the actual job as do onthe-job programs. Many people equate off-the-job training with the lecture method, but in fact a very wide variety of methods can be used. Table lists a number of potential training methods and activities.

Table: 1.2 Some Off-the-Job Training Methods and Activities

Action planning - Often a closing activity asking participants to specify of set
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goals about exactly what they will do differently back on the job. Behavior modeling training - Use of videotape to demonstrate the steps in a supervisory activity such as conducting a disciplinary Interview), followed by roleplayed skill practice and feedback. Behavioral simulation-Large-scale militiaperson role-play, no computerized business game. Brainstorming-Creative Idea-generation exercise in which no criticism as allowed. Business game-Computerized business simulation that requires participants to make decisions about strategy and investments and then provides financial results based on the decisions. Buzz group- Small-group discussion of several minutes duration on an assigned topic. Case study from a non-paragraph vignette to a fifty page Harvard-style case. Field trip Guest speaker Guided teaching- Drawing from the group the points the lecturer otherwise would make him or herself Ice breaker Get-acquainted exercise. Information search- Asking trainees to locate the answers to questions in the training materials of manuals provided. Inter group exchange Small groups share their ideas or findings with another group. Learning game- Competition between teams in a quiz format Lecture Mental Imagery- Asking participants to close their eyes and visualize or recall something or engage in mental rehearsal of a physical or interpersonal skill. Outdoor leadership training- Team activities that may include hiking, rope courses or other physical challenges along with problem-solving activities. Panel discussion
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Problem-solving activities Self-assessment instrument or quiz An example is a conflict resolution-style inventory. Team building- A series of group activities and sometimes surveys used to develop team skills and role clarify in a team of people who must work together closely on the job. Videotapes- Can be used alone but are most effective if embedded in discussion and practice.
Source: Cynthia D.Fisher, James B.Shaw (Human Resources Management) Fifth Edition.

9.2.2 On-the-Job Training

Formal on-the-job training (OJT) is contacted at the |work site and in the context of the actual job. The vast majority of all industrial training is conducted on the job, often by the trainee's immediate superior or a nominated peer trainer. On-the-job training has several advantages: 1. Because the training setting is also the performance setting, the transfer of training to the job is maximized. 2. The costs of a separate training facility and a full-time trainer are avoided or reduced. 3. Trainee motivation remains high because it is obvious to trainees that what they are learning in relevant to the job. 4. Trainees generally find on the job training more valuable then class room training. A formal OJT program should be constructed as carefully as a classroom training program. Ideally, the supervisor or peer who acts as the trainer will be taught how to introduce and explain new tasks. The trainer should consider carefully the order in which to introduce new tasks and should use a written checklist and objectives for each stage of the training process.43 Periodically, the trainer should give the trainee performance tests to ensure that the material is being mastered and to maintain trainee motivation through feedback. Job Instruction Training, a procedure developed to train new defense plant

106

workers during World War II, is outlined in Table. This is a proven and systematic way to teach a new task. On the negative side, OJT may suffer from frequent interruptions as the trainer or trainee is called away to perform other duties. Moreover, what many organizations call OJT is really very little training at all. Employees are abandoned on the job and expected to pick up necessary skills as best they can. Often these employees are not informed about important but infrequent events (such as emergency procedures or annual maintenance) and may learn bad habits and unsafe procedures from coworkers.

Table: 1.3 Job Instruction Training Procedures

How to Get Ready to instruct 1. Have a timetable - How much skill you expect and when 2. Break down the job - List the Important steps - Pick out the key points 3. Have everything ready - The right equipment, material, and supplies 4. Have the workplace properly arranged. - As you would expect the worker to maintain it.

How to Instruct
Step 1 : Prepare the Step 3 : Try out Worker ease Performance perform the a. Put the worker at a. Have the worker b. Find out what he or operation.
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she knows c. Arouse Interest correctly Operation a. Tell b. Show c. Explain d. Demonstrate

b. Have the worker explain the key

d. Place the worker points. c. Correct errors. Reinstruct as needed. Step 4 : Follow-up a. Put the worker on his own. b. Encourage questioning. c. Check frequently. d. Taper off assistance.
Source: K Wexley/G.Latham,Developing and Training Human resources Organization, 2nd Edition.

Step 2 : Present the d.

9.3 Training practice of Dhaka bank:

Human resource development is the most important part in any organizational sustainability, growth, development and expansion. The need for professional excellence at Dhaka bank duly recognized by its board of directors and management since December 1999, as it is evident by the decision to create Dhaka bank training institute (DBTI) that came into reality in 2000. Initially in June 2000, a makeshift arrangement was made at a temporary location at DBL local office and the training institution later was relocated to uttara and shifted to the present premise of sara tower in motijheel Commercial area in January 2004. The DBTI is committed to develop the human resources, the main driving force of the bank through structured modular training program. With a view to achieve professional 108

excellence in banking, DBTI conducts various courses, workshops, executive development programs mainly for officers and executives of the bank. During august 2000 till December 2009, the DBTI trained as many as 7130 participants through 291 different training programs covering all diverse courses for banking, finance, managements, law etc. DBTI has international exposure and formulated, designed and delivered 12 training courses under the capacity Building technical Assistance project of national bank of Tajikistan (central bank) financed by Islamic development bank for Assistance in formulating courses based on banking services at Dushanbe, Tajikistan during November 2005 to April 2006. Besides conventional banking related trainings; the DBTI also arranged, facilated and conducted various Executive development programs, workshops, discussion meeting and exchanged views for the improvements in banking challenges in twenty first century. Alongside normal training programs DBTI arranges short program and events and regularly visit branches and conduct different workshop. Internal and external resources persons are invited to lead the class seasons at DBTI. It has full-finished facilities with computers, IT and all modern electronic devices to accommodated 50 trainees at a time. DBTI has a library with more than 1,050 books covering all sides of banking needs. The DBTI library has professional linkage with many organizations at home and abroad. As a complete training institute, DBTI not only train staff of Dhaka bank but also renders training service to other bank as well. The DBTI maintain constant liaison with universities/ other organization / training institute for keeping itself updated with recent changes / development in relevant areas and also for necessary dissemination there of among their working at field level. Dhaka bank training institute has been working with its full dedication & efforts ans continuous support from Broad of directors and management to provide Excellence in banking through development of attitude, knowledge and skill keeping in view the

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organizational goals and economic prosperity of the country in the background of present globalize world in 2009, DBTI has conducted 45 courses involving 1173 participants. Details of Executive development program/ training course/ workshop on Dhaka bank:
sl 1 Title of course Dhaka bank Savings bundle project Course 4 Practices 106

Workshop on SBS-2 & SBS-3 Balance of Payment & reporting of Foreign Exchange transactions to Bangladesh bank Automated Clearing house

52

20

56

Credit risk of management

26

Anti-money laundering; policies & Implementation

51

IT operation & Policy Compliance : Branch perspective

26

IT training for Branches System Administration

80

Workshop on UCP600

28

10

Workshop on BACH & MICR

25

11

Training on credit management

32

12

Training on Handling the cash counter

23

13

Training on Eldarado: The Nationwide Remittance payment System

55

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14

Orientation and Basic Banking Workshop on Professional Skill Development & Anti-money laundering issues International Trade finance & Foreign Exchange Executive Development program on Fund management & product development Presentation on Automated Clearing Module Under BACH

33

15

15

286

16

26

17

32

18

16

19

Training Workshop on General Leger Reconciliation

21

20

Software Demonstration Training by Techno Haven

15

21

Foundation Training for banker course Islamic Banking-conducted by Central shariah Board for Islamic Banks BASEL II : Technical issues, challenges and Implementation Initiative

37

22

30

23

47

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CHAPTER 10
INTERNAL STAFFING PROCESS
OF

DHAKA BANK

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10.1 Internal staffing process of Dhaka Bank:

HRM of Dhaka Bank belief that the movement of human resource within bank is as important as the recruitment and selection of people from outside and calls for the same carefully planning and fair and systematic procedure. HRM of Dhaka Bank reassigns employees to new position at the initiative of the bank to fill staff vacancies, to reduce employee cost, or to place worker in job that are more appropriate to their interests and abilities. And they see that employee seek reassignments as their interests and abilities develop through experience. HRM of Dhaka Bank always aware that matching individual needs for growth and develop with needs of the bank is a major goal of the internal staffing process. Because they know inadequate or shortsighted attention to internal staffing changes can have negative effects on moral and productivity, which in turn can seriously impair the banks ability to attain objectives. In Dhaka Bank, most often, branch managers and departments heads are responsible for initiating employee reassignment. Because the human resource department has an overall view of the banks staffing needs and goals, that department is typically given the authority to coordinate and review plans for internal staffing changes and to ensure that decision comply with bank policy. Dhaka Bank does internal staffing through transfer, promotion and demotion employee in the bank.

10.1.1 Transfer:
In the bank, employees may be reassigned, or asked to transfer, from one job to another, one department to another, one branches to other branches. These reassignments may be initiated by bank or by the employee with the approval of the bank.

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HRM of Dhaka Bank has specific policies and procedures that have been developed mainly in response to some problem situations. They see that one problem may be needed to ensure a close match between an employees qualifications and new position. So HRM department is to transfer employees to make certain that his or her qualifications suit the new job before appraisal of the employees performance and potential. It does not make sense to be careful about initial hiring and then to casual about a transfer later on. HRM of Dhaka Bank play important role in this type of appraisal process by helping to development through procedures and then monitor transfer to make certain branches managers and department heads are using those procedures appropriately. Another problem is that sometime arise employee with poor performance or problem behavior whom department head and branches managers are less interested to keep on staff. For this problem HRM department is to resign that employee from one department to another or one branch to another to adjust his or her qualification and department activities. Some time some department head or branch managers are willing to accept those employees. HRM of Dhaka Bank is to evaluate carefully to make sure that the transfer is fair to everyone involved and that the interests of the total bank.

10.1.2 Promotion:
Dhaka bank developed promotion policies based on employee performance appraisal. Dhaka bank promotes employees on the basis of their performance and their potential. So Dhaka bank is to appraise employee before give employee promotion. How does Dhaka bank appraise the employee for their

promotion? Dhaka bank HRM department prepared an assessment from for their employee appraisal. And they are to give this assessment from to every branches and every department, immediate supervisor or boss and is responsible to fill the assessment form. This 114

assessment from mentions the employee job behavior, their potential, their daily duty record system, their misbehavior, honesty and dishonesty. The bank employee are appraised on the bases on those characters. Reporting boss or immediate boss give a comment about the employee on the assessment form after filling the assessment form. after filling the assessment form by the reporting boss, the branch manager or department in charge check the assessment form and they give final recommend about employee. Dhaka bank HRM department receives those assessment forms and they screen the assessment form and finally they send qualified employees form with recommend to the top management. The top management cheeks the assessment form and they arrange interview with qualified employees for their promotion by the HRM department. In Dhaka Bank, there are three types assessment from for appraisal, such supporting stuff assessment form, executive assessment form, and officer assessment form. Supporting assessment form uses to appraisal for the supporting staffs. Executive assessment form uses to appraisal for the officer position to top-level officer. These types of appraisal occur in Dhaka bank yearly.

10.1.3 Demotion:
Some time Dhaka bank is to task disciplinary action against employee as the part of demotion.

10.2 Concept of discipline:

Discipline connotes that the member of a group should reasonable conform to the rules and regulation i.e. the code of conduct behavior, which have been frame for it or by it so that everyone may benefit by them. Discipline is management action that encourage compliances with organization standards William B. Werther, Jr. keith davis (1996)

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Leon C Megginson (1970), term discipline bears all of the three meaning in its practical purpose or use: 1. Self discipline is the training that corrects, molds, and strengthens perfects. in this sense, it refers to the development of an individual, i.e. his or her efforts at selfcontrol for the purpose of adjusting himself to certain needs and demand. 2. The necessary condition for orderly behavior it considers discipline as the condition necessary to obtain orderly behavior in an organization. This implies keeping order and individual employee control among a group of worker by using method that builds moral and esprit de corps. 3. The act of training and punishment this concept considers discipline as a judicial due process based upon training and punishing. Thus discipline is a form of punishment, which a person incurs as a result of an undesirable act. Its function is not change past behavior but to prevent a recurrence of the act in the future.

10.2.1 Ground for disciplinary action:

Discipline organization required teamwork, which instantly responsive to the management direction. The manager aim should be to create a habit of response to superior action. When it becomes necessary to increase the frequency and intensity of orders, discipline may be deteriorating. The management should take disciplinary action only when it becomes abundantly clear that subordinates are losing their habit of giving the appropriate response. Inappropriate responses are called the act of in disciplinary or misconduct. Misconduct is a transgression of some established and definite rule, which does not leave any discretion of action to the employees. It is an act or a conduct which is prejudicial to the interests of the employer, or which is likely to impair the reputation of the employer, or create unrest among other employees. It is an act of misconduct event when such activities are performed outside the organization, or before or after the employees duty hours, in other word it is for the

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management to determine what constitutes misconduct before trying to rebuild his or her habit.

10.2.2 Legislation of disciplinary action for Bangladesh:

In Bangladesh, the employment of labor (standing) act 1965 has specified a procedure of punishment against any employees in section 18 which is mandatory for all organizations of follow while taking disciplinary action. Jucius (1979) suggested a disciplinary procedure that contains the following steps: 1. Statement of disciplinary problem. 2. Collection of full information. 3. Selection of tentative penalties. 4. Choosing the best form the alternative penalties. 5. Application of penalty. 6. Follow up. Pigors and Myers (1973) have suggested another procedure that however, the procedure that is followed in Bangladesh can be described in the following manner: 1. Statement of problem: the charges of misconduct or in disciplinary against an employee must be clearly stated. The allegation should be recorded in written against employee. It is popularly know as framing charge sheet. 2. Intimation of allegation to the employee with at least three days time for giving explanation. 3. Consideration of explanation: the through examination of the explanation may lead to either of the following action: (a) the case accused pleaded guilty, further enquiry can be dispensed with and the management can proceed in awarding punishment. (b) If the management is satisfied with the explanation, further action against the accused

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can be cancelled and the charges quashed; (c) if the management is not satisfied with the explanation, or if he contests the charge by pleading not guilty, a formal enquiry is order is ordered. 4. Issue of show cause notice by the disciplinary authority/committee. The accused is issued a show case notice giving minimum three days time to explain further his point of view. 5.notice of holding enquiry: a notice is given served to the accused employee giving time, data and venue place together with the name of the enquiry officer where in such an enquiry will be convened and the accused is given personal hearing, if such a prayer is made. The enquiry officer must not be one who has issued the charge sheet because it is a principle of natural justice that a person is disqualified to act as a judge if he is a arty to the dispute. 6. Enquiry procedure: the enquiry officer will conduct the enquiry on the preset time, data and place in the place in the presence of the charge sheeted workman. The enquiry officer should explain the charge sheet to the accused workman. If the accused workman pleads not guilty the enquiry should be preceded. If his pleads guilty in writing, the enquiry need not preceded. The accused is given full opportunity to crossexamine witnessed and documents produced by the management. He allows bringing his own documentary evidence and witness. The enquiry officer takes down the proceedings properly and records them. The enquiry must be fair and accused is given reasonable opportunity to defend himself. The enquiry officer must submit his report stating charges that are substantiated by the evidences and those which are not. He may then recommend the nature of action to be taken. 7. Decision: management will take necessary action with or without considering the recommendation made by the enquiry officer but that deemed fit in the case. A due consideration is given in accordance with the standing orders. The orders of punishment should be served to the accused workman on due process. The management can be divided under the following categories: 118

a. Oral warning b. Written warning c. Suspension d. Demotion e. Fine/ pay cut f. Discharge or dismissal g. Withdrawal of increment h. Suspension increment i. Adverse remarks on the service book j. Censure or simple reprimand.

The punishment should be appropriate to the gravity of the offence. It should be such as would prevent a recurrence of the offence. 8. Follow up: a disciplinary action should be evaluated in term of its effectiveness, after it has been taken. It is necessary to keep vigil to know the effect upon the punished employee.

10.3 In Dhaka bank disciplinary action:

Dhaka bank takes disciplinary action against employees when any employee violates the bank rules and regulation does misbehavior. If any employee violates the bank rules and regulation then Dhaka bank takes disciplinary action based on labor (standing) order act 1965. But this types incident occurs few in Dhaka bank. In Dhaka bank, some times a demotion is a type of transfers involving a cut in pay status privilege or opportunity. Some time

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Dhaka bank is to fire dishonesty employee. Because who work in branch they is to deal cash with the client, so they must be honest. If any employee seems to be dishonest and Dhaka bank does investigation about those types of cause and if finally the employee is proved his or her guilty then Dhaka bank take an action through the employee labor standing act 1995 and finally guilty employee.

10.4 Employee turnover in Dhaka bank:

In Dhaka bank there is little bit employees turnover. I have some information about employees turnover in Dhaka bank. At 2008, in Dhaka bank total number of employee 898 and the branch number was 44. At 2009 Dhaka bank total number of employee 1035 and the branch number are 50. So employee increase total 137 employees in the bank in 2008 to 2009. In 2008 turnover rate is 5.233 and in 2009 turnover rate is 5.233. Dhaka bank tries to reduce this kind of employee turnover. HRM department think that their remuneration is good their management policy is good so they are able to protest against any high degree employee turnover.

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CHAPTER 11
PERFORMANCE APPRAISAL OF DHAKA BANK

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11.1 Meaning of PA:

Once the employees have been selected trained and motivated, they are then appraised for their performance. A 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 employees and to remedy them. Organizations require consistent levels of high performance from their employees in order to survive in a highly competitive environment. Most organizations have some forms of performance appraisal of their employees. Evaluation of employee is one of the most universal practices of management. It is applied formally or informally to all employees. It means many things to many people. It is a measurement process; it is an exercise in observation and judgment; it is a feedback process. It is a control device, which is used by the organization to accomplish their predetermined goals. Performance refers to an employee's accomplishment of assigned tasks. Performance means doing a job effectively and efficiently. PA is a process of evaluating an employee's performance of a job in terms of its requirements. Performance appraisal is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. It provides the basis for assessment of employee contributions, coaching for improved performed and distribution of economic rewards. It refers to the outcome of the behavior of employees. Thus performance appraisal means deciding the value of work done by an individual. It is a process by which organizations evaluate individual job performance.

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11.2 Method of PA:

Method of PA

Setting Performance Standard

Communicating
Performance

expectations Discussing the appraisal results

Measuring actual performance

Comparing actual performance with the

standards

Initiating corrective Actions

The appraisal process begins with establishment of performance standards in accordance with the organization's strategic goals. Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. To be effective standards should relate to the desired results of each job. Job analysis uncovers specific performance standards by analyzing the performance of current employees. To hold employees accountable, a written record of the standards should exist and employees should be advised of those standards before the evaluation occurs. If performance standards are not job -related, the evaluation can lead to inaccurate or biased results; harming the mangers' relationship with their employees and violating equal employment opportunity rulings. Performance evaluation also requires reliable performance measures, the ratings used to evaluate performance. To be helpful, they must be easy to use, be reliable and report on the critical behaviors that determine performance. Performance measures also may be subjective or objective. Once performance standards are set, it is necessary to communicate these expectations; it should not be part of the employees job to guess what is expected of them. Employees

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can be involved in setting standards. It is important to note that communication is a twoway street: mere transference of information from the supervisor to the employees regarding expectations is not communication. To make communication effective, feedback is necessary from the subordinates to the manager. The next step in the appraisal process is the measurement of performance. To determine, what actual performance is, it is necessary to acquire information about it. \VE should be concerned with how we measure and what we measure. Managers regarding how to measure actual performance frequently use four common sources of information: personal observation, statistical reports, oral reports, and written reports. The fourth step is the comparison of actual performance with standards. The point of this step is to note deviations between standard performance and actual performance so that we can proceed to the fifth step in the process- the discussion of the appraisal with the employees. A necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interviews are performance review sessions that give employees essential feedback about their past performance or future potential. Without feedback, improvement in human behavior is not likely and the HR department will not have accurate records in its HR information system on which to base decisions ranging from job design to compensation. The evaluator may provide this feedback through several approaches: tell and sell, tell and listen, and problem solving. Managers must create a supportive environment to put employee at ease. Presenting an accurate assessment to the employee is a challenging task. The discussion of the appraisal can have negative as well as positive motivational consequences. The final step in the appraisal is the identification of corrective action where necessary. Corrective actions can be of two types: one is immediate and deals with symptoms, and the other is basic, which deals with causes.

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Performance appraisal is the formal, systematic assessment to how well employees are performing their jobs in the relation to established standards and the communication of that assessment to the employee. As the opening cases indicate, this process is of great important to the employee involved. Moreover, the results of performance appraisal also have a significant impact on the human resource process.

11.3 Performance appraisal system as an extension of job design:

Recruiting, interview, and selection Compensation decision

Orientation and training

Performance Feedback

Job analysis Job description And Specification

Performance Standard and goal statement

Coaching, training and development

Performance Appraisal forms

Performance Appraisal

Promotion Decision

Job evaluation

Certification and Renegotiation Of roles

Transfer, demotion and Separation decision

Career progression Ladders

Criteria for validating, Recruiting and 125 Selection Procedure

11.4 Performance appraisal of Dhaka Bank:

Who are involved in the appraisal process? In Dhaka Bank generally head of the branches or division supervisor, appraisal (self appraisal) branch in charge and department in charge. Immediate supervisor or boss: In Dhaka bank head of the branches or division has the formal authority to conduct appraisal and usually control the rewards for the performance. In addition, this person typically in the best position to observe the subordinate performance and to judge how well that performance serves the goal of the branch or department and the bank. 11.4.1 PERFORMANCE APPRAISAL FOR OFFICER ANALYSIS OF EXISTING PERFORMANCE APPRAISAL FORM
The first part is performance review. In this section, the specified target of getting deposit, advances, account opening, bank guarantee etc. is determined through prior discussion between appraiser and appraise which is commonly known as management by objectives approach. This is an appreciable step in performance appraisal. The appraiser settles on the issues (profit, deposit, advance etc) considering the following issues The level of the employee on organizational hierarchy Interpersonal skill of the employee Past performance of the employee Overall branch target decided from the head office

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Performance review is followed by self -appraisal. In this part employees usually write some general comments about his/her job, achievement and goals. The next part is the most vital part. It is the competence review. Here both technical and management skill of an employee is judged. For technical skill, mainly computer skill, language skill and knowledge regarding basics of banking (laws, regulations, calculations) are rated. For computer skill, the following issues are rated: Overall competence in computer skill like MS office programs, web browsing and email Competence in Flex Cube (the system software used for retail and corporate transactions and gathering information from the information center) module. Complete knowledge, speed and problem solving capabilities are judged. Both written and spoken fluency is rated. Mainly report writing, correspondence and presentation skill is appraised. Management skill: For the position ranging from assistant officer to senior principal officer, employees are evaluated according to a set of predetermined factors like self-confidence, customer orientation etc. Basing on the performance review and competence review, the appraiser writes down the most applicable grade to the employee. The appraisal then signs it. The appraisal can be recommend either for both promotion and increment or any one of the two. From general practice, it is known that an employee is not recommended for promotion unless Two years have passed since last promotion and Two years have passed since confirmation of employment (applicable for Trainee assistant officer, Trainee assistant cash officer and probationary officer) In the part of overall summary the appraiser writes a brief narrative describing the employees strengths and weaknesses. It is followed by comments by appraisers manager/supervisor (in

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this case branch manager of Dhanmondi branch). This includes comments regarding employees potential and transferability across different functional departments. The higher authority (head OF HR or Managing Director) expresses his/her comments concerning the employee. Finally, the appraise writes down comments after reviewing the overall appraisal. An employee has all rights to disagree with the grades given by the appraiser. The disagreement can either be resolved through discussion between appraisers and appraises or the matter may be carried forward to the Human Resources department. Basing on the overall competence review (technical and management skill) the appraiser recommends necessary training and development requirements to facilitate better performance of the employee. For example: in the foreign exchange department of Dhanmondi branch, the in-charge has recommended an extensive training of fifteen days on foreign trade for two employees conducted by BIBM. Apart from that, one employee was recommended to have training on SWIFT. Because, nowadays all sorts of L/C and other inter-bank correspondence (locally and internationally) is done through SWIFT. Besides, employees also participate on short trainings and daylong workshops. After the completion of the whole appraisal process, the appraisal forms are returned to the Human Resources department for documentation and follow up.

PROPOSED CHANGES IN FORMAT, PROCESS AND MANAGEMENT PHILOSOPHY

From the format, it is clearly understandable that the process is a simple rating scale, which comprises five scales ranging from outstanding to poor which expresses the highest level of performance to the lowest level. This is used because it is simple and quick. But this process has some significant disadvantages The factors and degrees are sometimes vaguely defined. For example, in case of customer orientation, communicating, and team orientation there should be specific definitions. The central tendency errors are likely to occur because it may be difficult for the appraiser to factually justify a rating above or below acceptable performance.

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This process sometimes lacks factual basis.

For some technical and management skill, Behaviorally Anchored Rating Scale (BARS) can be a very good alternative. It is more detailed and redefined version of the rating scale. Detailed analysis of a job and a precise identification of specific effective and ineffective job behaviors are mentioned in the appraisal form. As each job is carefully judged and identified it is a more objective method than other methods because behavioral statements are stated rather than vague descriptions of performance. Descriptive statements for each level of performance for each job factor is identified and then arranged on a scale in rank order. In this report, the scale provides for five descriptive statements for each performance factor. The scales are defined in the following: 5 Clearly outstanding performance 4 Good 3 Satisfactory 2 Below satisfactory 1 Poor Some technical and managerial skills are evaluated in BARS method in the next page: Job: Officer, Foreign Trade department Technical Skill: Functional knowledge Factor: Maker of retail and corporate module in Flex Cube 5 performance 4 Excellent Has complete knowledge in Flex Cube; Very fast and efficient in Meets all targets, exceeds some Meets all set targets on time Little shortfall in a few targets, but met others Could not meet any target Meets all targets and greatly exceeds some

Clearly outstanding processing transactions in retail and corporate module. Has good knowledge of Flex Cube and efficient in processing transaction in it.

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performance 3 Satisfactory performance 2 Moderate performance 1 Poor

Has knowledge of own field; can do the transaction processing correctly with moderate time. Can process transaction in Flex Cube module but needs assistance.

Slow in transaction processing, as a result L/C operation does not run smoothly, takes more time to complete the process.

Performance System software in which all sorts of transaction (retail, corporate) are processed and all previous transaction lists, statements etc are recorded.

Management skill: Communication Skill Factor: Follow up with PSI companies, timely submission of all related statements to head office/ Bangladesh bank; Regular correspondence with all related parties of L/C. 5 Clearly outstanding Can prioritize work, submits related statements before due date and maintains continuous correspondence with the remitting bank, beneficiary and other related authorities.

performance Maintains timely follow up with all concerned parties, send statements 4 Excellent correctly and on time performance Able to do all the works with moderate time. 3 Satisfactory performance Sends statements correctly to concerned parties but sometimes needs 2 Moderate supervisors reminder. performance Not able to do all the works by himself/ she takes others help; cannot 1 Poor performance Managerial Skill: Customer orientation prioritize work and needs continuous guidance from supervisor.

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Factor: All transactions related inward remittance through cash payout system, issuance of foreign draft, dollar endorsement and travelers cheque 5 Clearly outstanding Highly efficient in performing all tasks; Can meet all customer queries in time and follows up on those; provides fast service to the customers; has a friendly demeanor.

performance Efficient in performing own duties; Volunteers relevant information 4 Excellent and good services to customers; meets customer queries with a smiling performance face. Provides necessary service and information to the customer properly. 3 Satisfactory performance Provides reasonable service to customers; can not always answer all 2 Moderate customer queries (because of either knowledge gap or for not being performance able to prioritize) Not able to provide customer service properly; often makes mistake; 1 Poor does not have the right disposition to handle different types of performance customers.

Managerial Skill: Functional capability

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Factor: Issuance of local and foreign L/C; follow up and adjustment of payment instructions; reimbursement; proceed realization; scrutiny of shipping documents; lodgments; retirement and all related accounting entries. 7 Clearly outstanding performance 6 Excellent performance 5 Satisfactory performance 4 Neither nor bad Not able to identify all the problems in shipping documents and reluctant to take part in sharing responsibilities. Very efficient and prompt in performing all function and maintains proper coordination among other team members who share the responsibilities. Efficient in performing all the functions, effort in coordinating activities and sharing responsibilities are appreciable. Able to do all the works, sometimes takes assistance of others in scrutinizing the shipping documents, team members rarely expresses dissatisfaction about improper coordination and sharing responsibilities. Slow in doing works, team members sometimes complain about good improper coordination

performance 3 Poor performance

Managerial Skill: Team orientation

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Factor: Assisting others when required, solving problems collaboratively; Dependable, supportive, reliable, goes out of way to assist, In absence of one of the team member managing daily responsibilities of that person in addition to own works. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 bad performance 1 Poor performance Extraordinarily dependable, supportive, reliable, goes out of way to

assist; Maintains proper coordination among other team members who share the responsibilities.
Dependable and supportive; Maintains coordination among work team; Gives effort to strengthen team spirit. Effort in coordinating activities and sharing responsibilities are appreciable. Team members rarely express dissatisfaction about improper coordination

Neither good nor and sharing responsibilities. Team members sometimes complain about improper coordination; reluctant to take responsibilities of peers in case their absence (Sometimes not have the intention and sometimes can no allocate time for being slow work)

Furthermore, an external customer feedback can be done so that appraisers comments can be re- checked (whether positive or negatively biased). These feedback forms can be given to some valued clients for their comments. Similarly, internal customer feedback can also be taken from the superiors, peers and subordinates of it and other functional departments. A sample form is given in the next page

INTERNAL/ EXTERNAL CUSTOMER FEEDBACK As an internal/ external customer of (name) ___________________________ please give him/ her feedback regarding his/her work performance and work behaviors. After you have completed this form,

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send it to _________________________ your responses will be tabulated and then discussed with the individual. To what extent did this individual meet your expectations of work quality in areas you indicate as important:

Exceeds Meets Doesnt meet 1. Accuracy of the work you received 2. Timeliness of the work you received 3. Dependability of the work you received 4. Sharing relevant information to help you do your work more efficiently In terms of your interactions with this person, please feel free to comment on any of the following: 1. The type of errors and the amount of rework 2. The nature of any work delays 3. Interpersonal work behaviors 4. Collaborative efforts to improve work or business process

Please state any new expectations that you have regarding the work you receive from the person.

Thank you for completing this form We know, 360 evaluations is the most perfect way of appraising employees. Though it is time consuming, this can be started on a pilot basis to see whether the ultimate result differs in the two different processes. If the difference is significant, then proposed changes can be considered as essential to revise the existing system.

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11.4.2 PERFORMANCE APPRAISAL FOR ASSISTANT VICE PRESIDENT ANALYSIS OF EXISTING PERFORMANCE APPRAISAL FORM Similar to the performance appraisal form of assistant officer to senior principal officer, first part is performance review. An agreed key task that consists of profit, deposit, advance, bank guarantee etc is determined followed by a discussion between the apprisee and the appraiser (in this case, the branch manager of Dhanmondi). This approach is known as management by objectives. It utilizes employee participation in setting in setting meaningful, attainable tasks and personal objectives for each individual. The key factors of setting up targets are mentioned in the previous section. For the case of foreign trade department, fulfilling L/C target becomes much easier when some reputed business organizations maintain their respective L/C operations through a particular bank. In Dhanmondi branch of Dhaka Bank Ltd, The Acme Laboratories and The Acme Agro vet and Beverages Ltd are two companies that frequently import raw materials for their concerns. Besides these, some other clients are Flora Ltd, Gonoshasthaya Antibiotics and J.A.N Associates. All these are considered as very valued clients. Performance review is followed by self -appraisal. In this part executives usually write some general comments about his/her job, achievement and goals. The competence review is the most essential part. Here both technical and management skill of an employee is judged. Like the technical skill of assistant officer to Principal officer, it is very important for this position also. Basing on the performance review and competence review, the appraiser writes down the most applicable grade to the employee. The appraisal then signs it. The appraisal be can recommend either for both promotion and increment or any one of the two. From general practice, it is known that an employee is not recommended for promotion unless Two years have passes since last promotion and

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Two years have passed since confirmation of employment (applicable for Trainee assistant officer, Trainee assistant cash officer and probationary officer)

All other parts in the form are same as the previous one. At this level, training programs are not arranged as frequently as it is arranged for the level of Assistant officer to Senior Principal officers. Rather different types of day long seminar, workshops etc are arranged for them. Training is arranged when there is any major change in the laws, regulation, operation module etc. For example all in-charges of foreign trade participated in the training on UCPDC (Uniformed Customs and Practice for Documentary Credit) 500. The organization structure is pyramid shaped. For that upward mobility is comparatively slow in this level. In Dhaka Bank ltd, there is a tradition that employees get promotions on every two years. But this is not applicable for the position of AVP and above. Some executives who perform extraordinarily well, gets promotion in 2-3 years, but these are rare incident.

PROPOSED CHANGES IN FORMAT, PROCESS AND MANAGEMENT PHILOSOPHY In the earlier discussion, the definition of BARS and its advantages were described. Some technical and managerial skills are evaluated in BARS method in the following: Job: In charge (First Assistant Vice president), Foreign Trade department Management skill: Resource management Factor: translates strategic plans in to work assignments, facilitate the process of achieving targets of the branch.

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5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance

Successfully performs the job of planning and allocating human and monitory resources, which fulfill the ultimate objectives of target achievements and even exceeds profit target. Efficient in performing all the functions, can prioritize the allocation of resources where necessary; Sometimes exceeds profit Takes initiatives to do the jobs properly and meets the target

May face problem in resource planning and prioritizing its allocation Lacks ability to plan and allocate resources, cant fulfill the targets.

Management skill: Leadership Factor: Assigning jobs for the officers of foreign trade department and supervise their activities and evaluate their performance 5 Clearly outstanding Successfully assigns jobs to the officers, resolve conflicts in collaborative way, supervise their activities, boost team spirit and appraise the subordinates accurately

performance Efficient in assigning jobs and as a mediator of resolving conflicts; 4 Excellent possess required supervisory skills. performance Can do all the duties properly and try to develop team spirit 3 Satisfactory 137

performance May face problems while assigns jobs and resolving conflicts which 2 Moderate results in lack of coordination in team work performance Subordinates complain about the leadership skill, biasness in conflict 1 Poor performance resolution and supervising ability of the manager.

Management skill: Communicating Factor: All overseas correspondence/ communication related to foreign trade, represent own work unit, develop relations with other managers, and communicates the needs of the work group to others 5 Clearly outstanding Possess excellent communication skillcompletes all sorts of correspondence promptly and successfully, maintain very good relation with other functional departments. good communication skillcompletes all sorts of

performance Possess 4 Excellent

communications properly and on due time, has good relations with all

performance in the branch Able to perform all the activities but not prompt 3 Satisfactory performance May face problems in coordinating activities with other departments. 2 Moderate performance Poor in communicating with others, sometimes seek assistance of 1

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Poor performance

subordinates for different correspondence

Management skill: Business development and customer orientation Factor: Develop and maintain relationship with clients, participate in task forces to identify new business opportunities. 5 Clearly outstanding Personally visits potential and existing valued clients to show the eagerness to serve them and find new avenues for business development

performance Visits only existing valued clients and provide some extra services 4 Excellent when they come to branch. performance Does not give personal visits; Takes initiatives to expand business 3 Satisfactory through providing good quality services to the clients performance Does routine marketing and business development jobs; not serious 2 Moderate about extra initiatives. performance Depend on the past good will of the bank for further business 1 Poor development, no proper effort or initiative is visible, no special performance behavior with the clients is observed

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Management skill: Functional capability Factor: Authorizer of all transactions related to foreign exchange, scrutinize L/C proposals; in absence of operations manager the duties are transferred to him. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance For this level of hierarchy, major duties are managing individual performance, coordinating interdependent groups to ensure that the subordinates are meeting external 140 Has complete knowledge about all the related transactions and accounting entries, can check and authorize transactions very swiftly and Can identify makers mistake very quickly. Efficient in managing tasks of other departments when necessary. Has complete knowledge about all the related transactions and accounting entries, authorizations are done timely. Has knowledge about all the related transactions and accounting entries, authorizations are done timely Does routine jobs, does not feel comfortable while taking over charges of other departments Slow in doing works; lack knowledge of swiftly operating the Flex cube module, sometimes cant identify mistakes of the makers.

and internal customer needs and ensure uniformity in interpretation of policies and procedure. To make the appraisal process more transparent, neutral and accurate both internal and external customer feedback can be taken, but this form will differ from that of the junior level. This will check the positive or negative biasness of the appraiser (the branch manager) The internal customers can be the executives of the other functional departments. And the external customers can be senior officials of the valued organizations who have extensive L/C operations with the bank. A sample form is given below:

INERNAL/ EXTERNAL CUSTOMER FEEDBACK As an internal/ external customer of (name) __________________________ please give him/ her feedback regarding his/her work performance and work behaviors. After you have completed this form, send it to _________________ Your responses will be tabulated and then discussed with the individual. To what extent did this individual meet your expectations of work quality in areas you indicate as important: Exceeds Meets Doesnt meet 1. Accuracy of the work you received 2. Timeliness of the work you received 3. Dependability of the work you received 4. Sharing relevant information to help you do your work more efficiently In terms of your interactions with this person, please feel free to comment on any of the following: 5. The nature of any work delays 6. Interpersonal work behaviors 7. Collaborative efforts to improve work or business process 8. 141

Please state any new expectations that you have regarding the work you receive from the person.

Thank you for completing this form

We know, 360 evaluations is the most perfect way of appraising employees. Though it is time consuming, this can be started on a pilot basis to see whether the ultimate result differs in the two different processes. If the difference is significant, then proposed changes can be considered as essential to revise the existing system. 11.4.3 PERFORMANCE APPRAISAL FOR EXECUTIVE VICE PRESIDENT The appraisal form of Assistant Vice President (AVP) and Executive Vice President (EVP) are same. To avoid redundancies the detailed analysis of the appraisal form is not mentioned in this section. Only the performance review and competence review section is analyzed and changes are proposed accordingly. The EVP is the branch manager of Dhanmondi branch. 11.4.3.1 PERFORMANCE REVIEW The tasks and personal objectives regarding profit, deposit, advance, bank guarantee etc are determined through a meeting with Managing Director and head of Human resources in Head Office. The managing director of the bank is the appraiser for this position. Branch profit and other targets are also set there .The key factors for setting these targets are Location of the branch Availability of customers Market trend

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In Dhanmondi branch the targets are ambitious because of availability of large number of customers who deposit handsome amount of money. Moreover, there is provision of getting large number of salary accounts, deposit for employee provident fund etc because many schools, universities and corporate bodies are located around Dhanmondi branch. Regardless of the business opportunities, some threats are also involved in it. There is always constant threat of losing deposits. Because, nowadays banking business is very much competitive and competitors always offer interest rate, lower operating charges for different accounts. For deposit amounts like more than one crore difference is huge even if the interest varies for .25%. 11.4.3.2 COMPETENCE REVIEW This is more or less same as that of AVP position. So both technical and managerial skills are judged on simple rating scale, which has five categories. PROPOSED CHANGES IN THE FORM AND PROCESS Managerial skill: Leadership Factor: Assigning jobs for all the officers in all the available departments, developing a vision of future and formulate strategies to achieve that; motivating, energizing and influencing the behavior of other employees 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 143 Successfully assigns jobs, develop vision and can motivate employees towards that can influence employees behavior. Has the ability to translate strategies into action. Possess the ability to assign right job to the right person, Can develop appropriate strategies. Does routine jobs, but no extra effort is given.

2 Moderate performance 1 Poor performance

Sometimes faces problems while assigning jobs (can not put right person on the right position) that results in job dissatisfaction among employees Lacks the ability to motivate employees and can rarely influence their behavior.

Managerial skill: Business development Factor: Monitoring the business environment by analyzing business trends, developing relationship with clients and overseeing sales and marketing activities 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance Successfully performs all duties to achieve branch target; regularly review profit position and take necessary initiatives to achieve that; often profit exceeds target; and can explore new business avenues. Takes decisions basing on the market trends, supervise the sales and marketing activities. Performs well and proceed with a view to achieve branch target. Gives necessary efforts for business development. Sometimes face problems in carrying out duties that negatively

affects target achievement. Lacks proper knowledge of business development; no effort is given towards customer relationship and supervision on marketing activities.

Managerial skill: Customer orientation

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Factor: Pursuing the existing customers to strengthen the relationship and influencing new customers to get service from the bank. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance To sustain the business manager often depends on exercising the discretionary power. Lacks proper knowledge and influencing capability to retain customers, consequently customers switch to other competitors. Does routine jobs to retain customers but no extra effort is given. Can successfully pursue the valued clients to gather huge deposit and advances and minimum use of discretionary power (to enhance interest rate for FDR, to reduce l/C margin etc. which increases the cost of fund) Can pursue the valued clients and rarely use discretionary power.

Managerial skill: Functional capability

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Factor: Authorizer of all transactions related to all departments when necessary; responsible for compliance of anti- money laundering activities; follows up KYC (Know your customer) updates; works as an internal auditor of the branch; and ensures timely submission of all statements to Bangladesh Bank 5 Clearly outstanding performance Has complete knowledge about all the related transactions and accounting entries, can check and authorize transactions very swiftly and Can identify makers mistake very quickly; supervises and gives reminder in advance to all the departments to submit all sorts of statements timely and accurately and successfully meets the 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor audit compliances. Has complete knowledge about all the related transactions and accounting entries; supervises the procedure of submitting all sorts of statements timely and accurately and meet the audit compliances properly. Has knowledge about all the related transactions and accounting entries, able to meet the audit compliances Gives effort to perform all the duties but face problems in prioritizing works and consequently cannot keep balance of all the activities Slow in doing works; lack knowledge of swiftly operating the Flex cube module, often fails to supervise KYC and other compliances.

performance Managerial skill: Resource management This will be almost same as the appraisal process of AVP, but an AVP plans and allocates resources for his/ her own department but a branch managers responsibility is much more than that. S/he deals with all the departments in a branch and allocates resources accordingly.

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CHAPTER 12
COMPENSATION MANAGEMENT OF DHAKA BANK

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12.1 Compensation System Meaning:

An organization exists to accomplish specific goals and objectives. The individuals hired by the organization have their own needs. One is for money, which enables them to purchase a wide variety of goods and services available in the marketplace. Hence there is a basis for an exchange: The employee offers specific behaviors desired by the organization to meet its goals and objectives in return for money, goods, and/or services. Taken together, the money, goods, and/or services the employer provides employees constitute the employer's compensation system. The system that an organization uses to reward employees can play an important role in the organization's efforts to gain a competitive advantage and to achieve its major objectives. Compensation systems should do the following: Signal to employees (and others) the major objectives of the organization such things as quality, customer focus, teamwork, and other goalsby emphasizing these through compensation. Attract and retain the talent an organization needs. Encourage employees to develop the skills and abilities they need. Motivate employees to perform effectively. Support the type of culture (e.g., entrepreneurial) the company seeks to engender.

Ideally, a reward system should align individual objectives with important strategic goals of the organization, but for most organizations, the reality falls far short of (his ideal The design and implementation of a compensation system constitute one of the most complex activities for which human resource managers are responsible. The intricacy of compensation inspired the observation by one researcher that "reward systems are one of the most prominent and frequently discussed features of organizations."3 The following are some of the factors that contribute to this complexity:

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While other aspects of human resource systems (e.g., training, career management, appraisal systems, and quality-of-work-life programs) are important to some employees, compensation is considered crucial by virtually everyone.

One goal of a compensation system is to motivate employees, yet there is tremendous variation in the value different individuals attach to a specific reward or package of rewards. Further, an individuals values also may change over time.

The jobs in most organizations involve an almost endless variety of knowledge, skills and abilities and are performed in situations with a wide range of demands. Compensation systems consist of many elements in addition to pay for time worked; these components must be coordinated to work together. Employee compensation is a major cost of doing businessup to 80 percent for service firmsand can determine the competitiveness of a firm's products or services.

A number of federal and state regulations affect compensation systems. Employees, either directly or through collective bargaining arrangements, may desire to participate in the determination of compensation. The cost of living varies tremendously in different geographic areas, an important consideration for firms with multiple locations.

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12.2 System of Compensation:

Compensation System

Indirect Compensation

Direct Compensation

Base Pay

Merit Pay

Salary

Wage

Protection
Program * Medical Insurance * Life Insurance * Disability Income * Pension * Social Security

Services Pay for time Not Worked * Vacations * Holidays * Sick leave *Jury duty * Recreation Facilities * Car * Financial Planning * Low-cost or Free meals

Incentive Pay * Bonus * Commission * Place rate * Profit sharing * Stock option * Shift differential Deferred Pay
* Savings plan

* Stock purchase * Annuity

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12.3 Practice in the Dhaka Bank:

Right payment for right works, monthly payment, increment, rewards these are the Compensation principles of the organization. The organization performs performance evaluation to determine wages rates. The job classification and the point system Method is used for the purpose of performance appraisal. The organization has pay scales for its employees. The pay fixed in this organization is Confidential. There is no over time in this organization. The organization has performed salary survey. Here we mention the working hours of employees: Days/Week 5 5 5 Hours/day 12 12 12

Manager and Executive Non Aces Aces

Here we mention the methods and techniques to motivate employee in the organization. Pay, Job enrichment, Job rotation, Work at home, financial incentives, Flexible working hours, Work sharing, Promotion, Giving responsibility, Autonomy and freedom Here we mention the determinants of pay rates: Pay structure of other organization in the industry. Organization capacity to pay. Employees performance. Skill based pay. Sweet-will of the employer. Here we mention how the employees in this organization are motivated.

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Types of employees Managers Non aces Acs

Methods used Financial and work environment Financial and work environment Financial factors

Impressive job title and option for casual dress up these are the non-financial Incentives are available to the organization member. By at once meeting it is the procedure of Grievance handling in this organization. The organizations have health and Safety plan. Every employee in this organization has determined the healthy and safety requirement. The financial Incentives are available to the organization members- Stock ownership, Production incentive bonus, Award for outstanding performance- Special increments, Sales Bonus, Commission for sales person, Compensation for outstanding performance, Cost reduction. Here we mention the benefits and Service are available to the organization members. House rent allowance/rent free accommodation. Car/Conveyance allowance. Medical allowance. Bonus Leave with pay. Loan for purchase of car/house. Sick leave. Maternity leave. Marriage leave. Compensation for short-term disability.

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12.3.1 Festival Bonus The Bank will continue to pay two festivals bonus equivalent to one-month basic salary of an individual employee per annum as bonus to its permanent employees. 12.3.2 Incentive Bonus The Bank pays incentive bonus on the basis of profits of the bank that basic salary of an individual employee per annum to its permanent employees. An employee who has completed at least six months of continuous service in a year will be eligible to receive full payment of bonus. An employee who has not completed six months of service in a particular year will be paid bonus on pro-rata basis. 12.3.3 Provident Fund The Bank agrees that the rate of employees contribution to the Provident Fund shall continue to be10% of his basic salary month and the Banks contribution to the fund in respect of each employee shall be equal to the employees contribution to the fund. On completion of 5 years service, the contribution of the employee and that of the Bank will increase to 10% of the basic salary. 12.3.4 Gratuity The Rules prescribing payment of gratuity shall be called The Dhaka Bank Limited payment of Gratuity Rules, hereinafter called Gratuity. The following Rules shall apply to all employees of the Bank:

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i. ii.

The object of gratuity is to remunerate the concerned employee for the past services rendered to the Bank. The Bank shall cerate a gratuity fund as and when required for adequate amount for the purpose. All gratuity payments shall be made from appropriate expenditure account until such fund is created.

iii. iv.

Subject to the other provisions of these rules, an employee who has completed 05 years continuous active service shall be entitled to gratuity. The gratuity shall be paid at the rate of two months basic salary for each completed year of service or in excess of six months will be treated as one year for the purpose of calculation of gratuity.

v. vi.

The basic pay for the purpose of calculation of gratuity shall be the basic pay drawn by the employee concerned in the immediate last month. Notwithstanding anything contained herein above, the gratuity may be paid at the discretion of the competent authority to an employee who has not completed 5 years of active service.

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CHAPTER 13
SWOT ANALYSIS

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SWOT Analysis

Strengths of Dhaka Bank Limited (DBL)

Dhaka Bank Limited (DBL) is newly established Commercial Bank in the

Banking Sector but it builds strong reputation in short time.

The Financial Condition of DBL is very strong. Its Loan and Deposit Quality is
better than most other Private Commercial Banks in Bangladesh.

DBL has strong network throughout the country and provide quality services to
every level of Customers.

DBLs Correspondents Relationship with more than 200 International and Local
Banks created Global Accessibility and Relationship with People.

Installation and use of highly sophisticated, automated System (For example,

FLEXCUBE) enables Dhaka Bank Limited (DBL) to have on time communication with all Branches reduces excessive paper-works waste of time for Valued Customer Transaction.

ATM Cards of DBL give the Customers 24-hours Banking Facilities from his/her
Accounts.

Phone Banking of DBL gives the Customers, opportunity to make Enquiries and
Service Request over the Telephone.

Cash Advance from Credit Cards of DBL attracts more Customers to interact with
the Bank. Weaknesses of Dhaka Bank Limited

One of the greatest weaknesses for Dhaka Bank Limited (DBL) is the Shortage of
Manpower in every Division. During the Working Hours of the Bank, the Employees have to be fatigued and cannot provide proper attention that type of Services, which create dissatisfaction of the Customers.

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 Higher Service Charge in some areas of Banking Operations than that of the
Nationalized Commercial Banks discourage the Customers for opening and maintaining Accounts with DBL.

Growth in Assets of a Bank depends on hoe fast its Deposits grow. But in the
Deposit side DBL is facing some problems from its Competitors. Because the Competitors are giving a Higher Interest Rate in Deposits without any reason, which could be deteriorated its Position than before. Because of this a lot of Depositors are leaving the Bank.

There is a very little practice for increasing Motivation in the Employees by the
Management of Dhaka Bank Limited (DBL), which discourages them to provide the best Service to the Customers. This is another Weakness of the Bank. Opportunities of Dhaka Bank Limited

The greatest Opportunity for Dhaka Bank Limited (DBL) lies in the increase of
standard of living of a certain mass of the Population as well as their acceptance of the Nation of Consumer Financing and Short Term Lending.

The Credit Facility offered by Dhaka Bank Limited (DBL) attracted Security and
Status conscious Businessmen and as well as Service holders with Higher Income Group. Threats of Dhaka Bank Limited (DBL)

The emergence of several Private and Foreign Banks with in the post few years
offering similar Service with less or free charge for the facilities can be a major Threat of Dhaka Bank Limited (DBL).

The Central Bank exercise strict control over all Banking Activities in Local
Banks like Dhaka Bank Limited (DBL). Sometimes the restrictions impose barrier in the Normal Operations and Policies of the Bank.

Revival Banks easily copy the Product offering of Dhaka Bank Limited (DBL).
Therefore the Bank is in continuous of Product Innovation to gain Temporary Advantage over its Competitors. This is another Treat of the Bank.

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 Sometime Political Loans are the Threat for the Banking Service.

RECOMMENDATION
Dhaka Bank is one of the third generation banks of Bangladesh and paying a vast role for developing the banking sector and also economy of Bangladesh. Dhaka Bank management is not bad but they should reach the standard level, especially Dhaka Bank should emphasize on HRM and they should develop HR department. Dhaka Bank HRM department have some lack for their operation so top management should recover that problem. Dhaka Bank performance appraisal process should follow some updated method to satisfy the present employee. The recruitment process should be combined such as internally and outside recruitment. Dhaka Bank job design should be updated; they should follow some specific method for the job analysis and the job description and job specification. The Dhaka Bank top management should arrange sufficient staffs for the HRM department.

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CONCLUSION
The one of the most important part of assignment is gaining the practical knowledge through dissertation worked and practices as well as theoretical knowledge. The main objective of this report is to fulfill the academic requirements of all courses and gather some practical knowledge. So I have entailed of the report HRM practice of Dhaka bank I have tried to focused Dhaka bank staffing process, performance appraisal process and job design policy. I also tried to introduce other function of the HRM department of Dhaka Bank. Dhaka Bank HRM follows modern policy for their operation. But they did not reach higher standard level for their HRM practice yet. The HRM department management is not efficient as well as multinational company HRM practice. For some of the operation they follow traditional policy, they do not follow proper HRM practice. Dhaka Bank HR department recruit people from inside of the bank by only employee reference and skill inventory. They should follow other extra other method. Only these two methods are not proper for the internal recruiting for any organization. Dhaka Bank HRM does follow any method for job analysis and job design. They follow tradition policy for the job analysis and job design. They follow tradition policy for the job analysis and job design. They follow tradition policy for the job analysis and job design. Dhaka Bank internal staffing management quality is also not good as multinational company. Dhaka Bank selection process is very simple; the selection process is not extra ordinary or standard quality. Dhaka Bank has not sufficient staffs for their HRM operation and individual staff faces more pressure for their daily operation.

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But HRM department of Dhaka Bank is trying to improve to reach standard level. The top management and HRM manager believes that their HRM department is updating and will reach multinational level.

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REFERENCE
Dhaka bank annual report 2008 Cynthia D.Fisher, James B.Shaw (Human Resources Management) Fifth
Edition.

www.HumanResourcesmanagement.com K Wexley/G.Latham,Developing and Training Human resources

Organization, 2nd Edition.

John W.Newstrom and Mark Lengnick Hall one Size Dose Not Fit All
Reprinted from Training and Development. Copyright June 1991,

Adapted from William j.Robert k.prescott, and Maria w.Taylor, Strategic

Human Resource Management.

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