You are on page 1of 88

Comparing Job Satisfaction Level in Different Organizations

2010

Comparing Job Satisfaction Level in Different Organizations


Selected Organizations: ICB & IDLC

May 06, 2010

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

COMPARING JOB SATISFACTION LEVEL IN DIFFERENT ORGANIZATIONS


Selected Organizations: ICB & IDLC

Group: 17

SUBMITTED BY

May 06, 2010

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

Declaration

e are thankful and grateful to almighty Allah who has given us the strength and ability to complete the report on Comparing Job Satisfaction Level in Different Organizations. We are also grateful to our Course Instructor Nusrat Khan Madam to prepare this very important report. She has given all sorts of help required to complete this term paper. We are also grateful to those who have given us suggestion

and interaction. To compare the job satisfaction level in different organizations we run a survey on 25 employees from two organizations: Public and Private based on a questionnaire & collect data about their opinion about their productivity, absenteeism and job satisfaction level. We also collect data regarding their position. By analyzing all these data we try to determine the relationship between job satisfaction and other dependent variables. We also do sincerely declare that this term paper has been submitted, in partial fulfillment of the requirement for the Organizational Behavior and Human Resource Development (F-301) course. The research work is written in our own language. Though we studied and followed some books of OB and HRM, no part of this term paper consists of materials, copied or plagiarized from published or unpublished work of other writers and that all materials borrowed and reproduced from other published or unpublished sources have either been put under quotation or duly acknowledged with full reference in appropriate places. We understand that the term paper may be cancelled if subsequently it is discovered that this term paper is not our primeval work that it consists of materials copied or plagiarized or borrowed without proper acknowledgement. We, at last, express special thanks from the bottom of our heart to all who help us directly & indirectly to complete this term paper.

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

Table of Contents
Section
0 1 2 3 4 5 6 8

Topics
Executive Summary Introduction Theoretical Development Company Profile Survey, Comparison and Interpretation Findings Summary and Conclusion Bibliography & Appendix

Page No.
07 08 13 25 61 80 82 85

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

Executive Summary

ne of the major part in our life is to live with respect and honor. O live happily we need a job which will guide us through high salary. Organizational Behavior is the study by which employee attitudes are overlooked and by this way their behavior is analyzed. A most important part in organizational behavior is job satisfaction. Job satisfaction is essential for both an organization and an employee. An employee need to be satisfied to perform smoothly and an organization should use this opportunity to do the best effort

of the employees. Job satisfaction depends on five variables such as productivity, absenteeism, turnover, deviant workplace behavior and organizational citizenship behavior where it is positively correlated with productivity and organizational citizenship behavior and negatively correlated with absenteeism, higher turnover and deviant workplace behavior. In our term paper first of all the terminologies are used to understand what these term actually refer to. Then the relationship between job satisfaction and other variables are described with correlation calculation and some awesome graphs in order to show the actual relationship between them. To complete our task more realistic and credible, we have chosen two organizations: public and private. After then we have surveyed 25+25= 50 employees about their opinions towards job satisfaction. After then based on the calculation, we have showed our findings. In our findings section we have represented some real problems that are happening in our country. Then the summary and conclusion part as usual. After then we want to understand everybody what the importance of job satisfaction in an organization is in the summary part. One thing we want to represent is the importance of job satisfaction and its value to an organization. Another thing is the reality. Why employees do not work perfectly is their dissatisfaction.

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

INTRODUCTION

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

Comparing Job Satisfaction Level in Different Organizations


Selected Organizations: ICB & IDLC

BACKGROUND OF THE STUDY

n this present era, everything is becoming changed. At the past, there were employees available but not so much organizations were available there. But now-a-days there is shortage of employment. There are lots of people searching for employment but fewer organizations are capable of giving them jobs. As a result, there remains huge competition in obtaining a job. But still the organizations have to manage the employees. They have to motivate skilled employees to be in their organizations. In order to maintain this they

ensure job satisfaction of employees which will guide the employees to the improvement of the organizations. So, job satisfaction becomes an irreplaceable part in an organization.

OBJECTIVES OF THE STUDY


The importance of Job satisfaction is very significant in organizations as well as employees. To make an employee loyal to the organization and to ensure the development of the organization job satisfaction is essential. So, in order to increase performance of the employees job satisfaction plays a significant role. In an organization, if an employee is loyal, hell try to do improvement of the organization. Obviously his performance will increase. To ensure it some dependent variables work simultaneously. These variables are: productivity, absenteeism, turnover, deviant workplace behavior and organizational citizenship behavior. There is relationship among these variables. In the light of above discussion, our objectives of preparing this term paper is to analyze the job satisfaction in different organizations and the relationship of other variables with job satisfaction.

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

Broad objective:
The broad objective of this report is to study the job satisfaction level in different organizations in order to describe the surveyed data on the basis of given data and to show the importance of job satisfaction in an organization.

Specific objectives:
To focus on the specific questions those are widely used in determining job satisfaction. To focus on the job satisfaction level of employees in an organization. To focus on the factors that affect job satisfaction and the relationship of employees staying

in an organization with job satisfaction. We, the student of business school, know about many methods or tools to satisfy employees. But these are only bookish knowledge. We know that bookish knowledge will not be effective unless we see the practical use of them. Our objective to make this report is to be introduced with the practical situation of employees in organizations. And we have given a survey in our repot to show how the factors ensure employees staying in an organization. As a result we will come to know about the practical use of the organizational behavior in real life.

SCOPE OF THE STUDY


Employees performance can increase if job satisfaction is ensured in the organization. For example, if an employee is satisfied, hell try his level best to improve the condition of an organization. So first task is to motivate him and ensure his satisfaction. The main focus of the study is therefore to determine factors that affect job satisfaction and through this satisfaction what the outcome is.

PROCEDURE OF THE STUDY


After being ordered by our honorable course teacher of Organizational Behavior and Human Resource Development (F-301) course Nusrat Khan; we decided to make a report. At first, we all the group members discussed about job satisfaction techniques and then made a plan for making the report on Comparing Job Satisfaction Level in Different Organization. Our plan for making this report was firstly to collect data from the net and analyze them attentively for finding out the necessary information related to our report and finally to arrange all of those

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations

2010

data systematically. Then questionnaire is made and all data is collected. For arranging all the data, we have followed some procedures and steps such as at first we have given an idea of general job satisfaction procedures followed throughout all. Then we discuss about the collected data and present them in graphical presentation with essential notes. After analyzing those data, we have used our bookish statistical knowledge in real life example. These are the procedures of Sitting with the Guide making our report.

Selection of Topic Group Study

Selection of Study Area

Collection of Data Group Study Analyzing Data Operation on Data Preparation and Submission of the Report

METHODOLOGY USED IN THE STUDY


Methodology is the process of system through which a study is being carried out for the purpose of collection of information which is required in connection with the study for reaching a conclusion on the study. When our honorable teacher Nusrat Khan ordered us to submit a report on Comparing Job Satisfaction Level in Different Organizations, then we collected data by making a survey. We collected data about individuals spending of time in an organization. They gave us some important data which are rich with data of survey. We also collected data about their favorite options. Here we collect data from fifty people. After gathering data, we studied on them attentively and made the best use of them to enrich our report. The required data of our report was collected from our text. Some of information which was given in our report was directly found from other OB and HRM books. Besides all we got some data from website.

May 06, 2010

Group-17; Sec-B

Comparing Job Satisfaction Level in Different Organizations AREA OF STUDY

2010

For the purpose of partial fulfillment of the study, we have chosen the project on Comparing Job Satisfaction Level in Different Organizations and make a survey among fifty people. Then we arrange those data in different tabular form and different graphical form. After that we establish relationship between dependent variables and job satisfaction.

LIMITATIONS OF THE STUDY


Limited Time Small Sample Size Lack of adequate information Lack of Experience Few Operations Ambiguous Sample data Limitation of Knowledge Limitation of performing the numerical calculation.

May 06, 2010

Group-17; Sec-B

10

Comparing Job Satisfaction Level in Different Organizations

2010

THEORITICAL DEVELOPMENT

May 06, 2010

Group-17; Sec-B

11

Comparing Job Satisfaction Level in Different Organizations

2010

JOB SATISFACTION
Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance; methods include job rotation, job enlargement and job enrichment. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work groups. Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself and co-workers. Some questioners ask yes or no questions while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents "extremely satisfied"). Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of ones job; an affective reaction to ones job; and an attitude towards ones job. Weiss (2002) has argued that job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behaviors. This definition suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors

May 06, 2010

Group-17; Sec-B

12

Comparing Job Satisfaction Level in Different Organizations

2010

From the above graph, we can say that job satisfaction is the positive feeling about ones job resulting from an evaluation of its characteristics. It represents an attitude rather than a behavior.

SOME TERMINOLOGIES
Before discussing the relationship first we should know about some terms as follows:

PRODUCTIVITY:
Productivity means to achieve the highest target with lowest input. It means that by using lowest level of inputs ensuring highest level of outputs. In a nutshell, Productivity means:

Absenteeism:
Absenteeism means the failure to report to work. It is a huge cost and disruption to employees. In a nutshell Absenteeism means:

May 06, 2010

Group-17; Sec-B

13

Comparing Job Satisfaction Level in Different Organizations

2010

Turnover:
Turnover is the voluntary and involuntary permanent withdrawal from an organization. A high turnover rate results in increased recruiting, selection and training. In a nutshell Turnover means:

May 06, 2010

Group-17; Sec-B

14

Comparing Job Satisfaction Level in Different Organizations

2010

Deviant Workplace Behavior:


Deviant Workplace Behavior (also called antisocial behavior or workplace incivility) is voluntary behavior that violates significant organizational norms and in doing so, threatens the well-being of the organization or its members. In a nutshell, Deviant Workplace Behavior means:

Organizational Citizenship Behavior:


Organizational Citizenship Behavior is discretionary behavior that is not part of an employees formal job requirements but that nevertheless promotes the effective functioning of the organization. In a nutshell, Organizational Citizenship Behavior means:

May 06, 2010

Group-17; Sec-B

15

Comparing Job Satisfaction Level in Different Organizations

2010

RELATIONSHIP OF JOB SATISFACTION WITH OTHER DEPENDENT VARIABLES

Measuring Job Satisfaction:


How can job satisfaction be measured? The most widely used measure is a very simple one. Overall job satisfaction can be assessed by simple questions such as `Choose one of the following statements which best tells how well you like your job: I hate it, I dislike it, I do not like it, I am indifferent to it, I like it, I am enthusiastic about it, I love it' (Hoppock, 1935). Later measures have used a series of scales to measure different components of job satisfaction. Many scales have been devised for this purpose: one book reviews no fewer than 249 scales of various kinds (Cook et al., 1981). However, one of the most widely used is the Job Description Index, which contains five scales, seventy-two items in all, which are answered `yes', `no' or `uncertain' (Smith, Kendall and Hulin, 1969). The five scales are designed to measure satisfaction in the following areas: (1) work on present job, e.g. fascinating; (2) present pay, e.g. income inadequate for normal expenses (-); (3) opportunities for promotion, e.g. fairly good chance for promotion; (4) supervision on present job, e.g. lazy (-); (5) people on present job, e.g. talk too much (-). The minus signs show reversed items, i.e. those that show dissatisfaction. It may be important to distinguish between positive and negative aspects of job satisfaction. Herzberg et al. (1959) stated that (positive) satisfaction is due to good experiences, and that these are due to `motivators' - achievement, recognition, the work
May 06, 2010 Group-17; Sec-B

16

Comparing Job Satisfaction Level in Different Organizations

2010

itself, responsibility and advancement. Dissatisfaction is due to bad experiences caused by `hygiene' factors - supervisors, fellow workers, company policy, working conditions, and personal life (Herzberg et al., 1959). This was supported by critical incident studies in which workers were asked to describe occasions when they had felt exceptionally good or exceptionally bad. However, the theory was supported only when this method was used. Wall et al. (1971) found that if workers were asked similar questions in an informal and confidential interview, this pattern of results was not obtained. They concluded that the Herzbergian pattern of results was due to `ego-defensive processes'; the results would now be described perhaps as `defensive attribution' or as `selfpresentation'. Good events are said to be due to one's own achievements, bad events to the failings of others. As a result it is generally considered that this theory has failed (Griffin and Bateman, 1986). This may be a mistake, since research on happiness has found partial independence of positive and negative aspects. Research on joy confirms Herzberg's finding that achievement is important, but it also finds that relationships with other people are even more important and not just a source of distress as he found (Argyle, 1987).

Relationship with Productivity:


Productivity is a performance measure that includes effectiveness and efficiency. If an employee is satisfied in an organization he or he will do his or her best to increase productivity. He or she will always try to take part in organizations development. So the more the employees are satisfied, the more the productivity will increase.

The correlation between job satisfaction and productivity:


Brayfield and Crockett (1955) astounded the world of occupational psychology by finding an average correlation of only + .15 from the 26 studies published up until then. The latest meta-analysis of 217 separate correlations (in 74 studies) also found an overall correlation of + .15 (Iaffaldano & Muchinsky, 1985). Eight of these studies produced correlations of +.44 or above; these were all supervisory or professional workers, using self, peer or supervisory ratings of performance. Petty et al. (1984) found an overall correlation of +.23; this was +.31 for supervisors and above, +.15 for those at lower levels. Some recent studies have found correlations which are higher than this under certain conditions. An overall correlation of +.35 was found in one, but it was as high as +.60 when there was little pressure for performance, i.e. when hard work was more voluntary (Bhagat, 1982). It is interesting that the correlation is greater for those in supervisory or professional jobs. In these jobs performance depends less on external pressures, like wage incentives or assembly-line speeds, and more on motivation, creativity and helpfulness. Laboratory experiments on mood induction have shown that putting subjects in a good mood leads to (1) better and more original problem-solving, (2) greater helpfulness and generosity, and (3) more positive attitudes to other people (Argyle, 1987).

May 06, 2010

Group-17; Sec-B

17

Comparing Job Satisfaction Level in Different Organizations

2010

Figure-The % increase in productivity in our country in the last 10 years.

Figure-The relationship of Job Satisfaction with Productivity.

Relationship with Absenteeism:


There is a consistent negative relationship between satisfaction and absenteeism but the correlation is moderate to weak. While it is certain that dissatisfied employees are more absent than the satisfied one. The satisfied employees always try to be present in the organization.

May 06, 2010

Group-17; Sec-B

18

Comparing Job Satisfaction Level in Different Organizations

2010

The correlation between job satisfaction and absenteeism:


The relation between job satisfaction and absenteeism has also been studied. It would be expected that happy workers would turn up more often to receive the benefits which they enjoy at work. In fact, the average correlation is quite low: -.09 in one metaanalysis (Hackett and Guion, 1985), and -.22 in another (McShane, 1983). However, there is a much skewed distribution of absenteeism - most people are not absent at all, which reduces the possible size of correlations (Hackett and Guion, op.cit.). The relationship is greatest with satisfaction for pay and promotion (Rosse and Miller, 1984), and for the work itself (Hackett and Guion, op.cit.). There is a clearer correlation with voluntary or unexcused absence which is not due to sickness. The relationship is stronger for women, manual workers, workers in larger firms and younger workers (Metzner and Mann, 1953). These are the people who are absent more, so that there is a less skewed distribution.

Relationship with Turnover:


Satisfaction is also negatively related to employee turnover, but the correlation is stronger than what we found for absenteeism. Here some factors such as labor-market conditions, expectations about alternative job opportunities and length of tenure with the organization are important constraints on an employees decision to leave his or her current job.

The correlation between job satisfaction and turnover:


Similar analyses have been made of job satisfaction and labor turnover, and the correlation is typically -.20 to -.30 and rarely greater than -.40 (Mobley, 1982). Carsten and Spector (1987), in a meta-analysis of forty-seven studies, found an overall correlation of -.23 (but of -.51 under high unemployment, see below). Labor turnover correlates with different components of job satisfaction, but especially satisfaction with job content (Mobley et al., 1979).

May 06, 2010

Group-17; Sec-B

19

Comparing Job Satisfaction Level in Different Organizations

2010

Figure-The relationship of Job Satisfaction with Turnover.

Relationship with Deviant Workplace Behavior:


Job Satisfaction predicts a lot of specific behaviors, including unionization attempts, substance abuse, stealing at work, undue socializing and tardiness. Researchers argue that if employees dont like their work environment, theyll respond somehow and engage in such tasks.

The correlation between job satisfaction and deviant workplace behavior:


Job satisfaction is also correlated with other kinds of desirable behavior at work - there is less sabotage, stealing, doing work badly on purpose, and spreading rumors or gossip to cause trouble (Mangoine and Quinn, 1975). This effect was stronger for those over thirty-five years of age, probably because they would only engage in such behavior if they had a very strong sense of grievance. Bateman and Organ (1983) found that nonacademic university staff who were satisfied engaged more in a wide variety of `good citizenship' behavior at work - they were more punctual, dependable, helpful, cooperative and tidy, and they created less waste, made fewer complaints and were angry less frequently.

May 06, 2010

Group-17; Sec-B

20

Comparing Job Satisfaction Level in Different Organizations

2010

Workplace deviance is related to the five-factor model of personality. Interpersonal deviance is negatively correlated with high levels of agreeableness. Organizational deviance is negatively correlated with high levels of conscientiousness and positively correlated with high levels of neuroticism. This implies that individuals who are emotionally stable and conscientious are less likely to withhold effort or steal, whereas those who are agreeable are less likely to be hostile to their coworkers. Another entirely different factor to consider is perception of the workplace. Employees who had a positive perception of their workplace were less likely to pursue deviant behavior. Research indicates that personality acts as a moderating factor: workplace deviance was more likely to be endorsed with respect to an individual when either the perception of the workplace was negative and emotional stability, conscientiousness, or agreeableness was low (Colbert, Mount, Harter, Witt, & Barrick, 2004).

Figure-Positive Workplace Behavior.

Figure-Negative Workplace Behavior.

May 06, 2010

Group-17; Sec-B

21

Comparing Job Satisfaction Level in Different Organizations

2010

Figure-The relationship of Job Satisfaction with Deviant Workplace Behavior.

Relationship with Organizational Citizenship Behavior:


Satisfied employee would seem more likely to talk positively about the organization, help others and go beyond the normal expectations in their job. They might be more prone to go beyond the call of duty because they want to reciprocate their positive experiences.

The correlation between job satisfaction and organizational citizenship behavior:


The relationship between job satisfaction and OCB can be depicted in several ways. Organ & Konovsky suggest that job satisfaction is the strongest measure that correlates to OCB. It has been found in 15 independent studies that a significant relationship exists between job satisfaction and OCB. In their study of a sample of university employees, Bateman & Organ also detected a substantive relationship between job satisfaction and OCB 25 Smith et al. found that job satisfaction is correlated 0.31 with altruism, but not directly correlated to generalized compliance in either large or small organizations. Schnake, Cochran, & Dumler conducted a study of a small manufacturing firm, which found that job satisfaction explained the variance in only two of the five OCB dimensions. On the other hand, Hodson argues that pride in task completion is more related to OCB than job satisfaction. In addition, job involvement, followed by affective commitment, organizational trust, and perceived needs were more correlated with OCB than job satisfaction. In contrast to previous studies, Schappe argues that job satisfaction is not related to OCB; and Farh et al. maintain that their findings do not show that satisfaction accounts for unique variance either in altruism or the compliance dimensions of OCB. Even so, some researchers are skeptical of the relationship between these two variables and consider such a relationship spurious. Instead, they believe that any divergences may be due to the nature of job satisfaction measures, which include perceptions of fairness. Thus, Organ claims that when job satisfaction and perceptions of fairness are measured together, the latter explains an increase in variance in OCB. Scholl, Cooper, & McKenna found that pay equity correlated 0.41 with OCB, while the correlation of pay satisfaction was 0.19. Research therefore suggests that fairness is a predictor of OCB, while job satisfaction is not.

May 06, 2010

Group-17; Sec-B

22

Comparing Job Satisfaction Level in Different Organizations

2010

Moorman found that job satisfaction is not related to OCB, while procedural justice measures relate to four out of five OCB dimensions. In a further study, Moorman also found that when the relationship between justice and OCB is controlled, job satisfaction no longer relates to OCB. Furthermore, when perceptions of overall fairness are controlled, job satisfaction relates to only two out of five OCB dimensions. In their meta-analysis study, Organ & Rayan, contrary to previous studies, did not find that fairness was a better "predictor" of altruism than job satisfaction. Moreover, in a sample of 145 government employees in the Southeastern United States, both organizational commitment and job satisfaction were significantly correlated with OCB, while the fairness of supervisors was not. Thus, we can conclude that the relationship between job satisfaction and OCB depends on the nature of the job satisfaction measure. The literature in this area suggests that cognitive or affective satisfaction measures differ in their relative effect on OCB. Williams & Anderson argue that the cognitive satisfaction measure was related to two types of OCB, while the affective satisfaction measure was not related to OCB. Moorman goes even further and claims that cognitive satisfaction explains more variance in four of five dimensions than affective satisfaction in organizational settings. Organ & Konovsky also found that cognitive satisfaction predicts two forms of OCBs, while affective satisfaction is not significant. Others are not so quick to dismiss the influence of affective measures upon behavior, however, claiming that cognitive measures of job satisfaction explain more variance in OCB than affective measures of job satisfaction without dismissing the latter completely.

May 06, 2010

Group-17; Sec-B

23

Comparing Job Satisfaction Level in Different Organizations

2010

COMPANY PROFILE

May 06, 2010

Group-17; Sec-B

24

Comparing Job Satisfaction Level in Different Organizations

2010

IDLC FINANCE LIMITED


IDLC Finance Limited is a multiproduct financial institution, established in 1985 with the collaboration of reputed international development agencies such as:

Korean Development Leasing Corporation (KDLC), South Korea Kookmin Bank, South Korea International Finance Corporation (IFC) of the World Bank Group Aga Khan Fund for Economic Development (AKFED) German Investment and Development Company (DEG)

The primary goal of IDLC was to help modernize the financial services industry, by introducing modern modes of financing hitherto unknown to Bangladesh. This, we set about to do, by pioneering the launch of a multitude of financial products and services

History - Key Milestones :


May 23, 1985 February 22, 1986 October 1, 1990 March 20, 1993 February 7, 1995 Incorporation of the Company Commencement of leasing business Establishment of branch in Chittagong, the main port city Listed on the Dhaka Stock Exchange Licensed as a Non-Banking Financial Institution under the Financial Institutions Act, 1993 November 25, 1996 Listed on the Chittagong Stock Exchange May 27, 1997 January 22, 1998 January 15, 1999 Commencement of Home Finance and Short Term Finance operations Licensed as a Merchant Banker by the Securities and Exchange Commission Commencement of Corporate Finance and Merchant Banking

May 06, 2010

Group-17; Sec-B

25

Comparing Job Satisfaction Level in Different Organizations


operations January 29, 2004 June 29, 2004 February 7, 2005 September 18, 2005 Opening of the first retail focused branch at Dhanmondi Opening of Gulshan Branch Issuance of Securitized Zero Coupon Bonds by IDLC Securitization Trust 2005

2010

November 22, 2004 Launching of Investment Management Services "Cap Invest"

Launching of Local Enterprise Investment Centre (LEIC), a centre established for the development of SMEs with the contribution of the Canadian International Development Agency (CIDA) of the Government of Canada

January 2, 2006 April 6, 2006 May 18, 2006 July 1, 2006 September 18, 2006 March 14, 2007 August 5, 2007

Opening of SME focused branch at Bogra Opening of Branch at Uttara Opening Merchant Banking branch in the port city of Chittagong Relocation of Company's Registered and Corporate Head Office at own premises at 57, Gulshan Avenue Commencement of operation of IDLC Securities Limited, a wholly owned subsidiary of IDLC Launching of Discretionary Portfolio Management Services "Managed Cap Invest" Company name changed to IDLC Finance Limited from Industrial Development Leasing Company of Bangladesh Limited

December 3, 2007 December 18, 2007 January 6, 2009

IDLC Securities Limited Chittagong Branch commenced operation IDLC Securities Limited DOHS Dhaka Branch opened IDLC Finance Limited and IDLC Securities Limited open Sylhet branches

May 06, 2010

Group-17; Sec-B

26

Comparing Job Satisfaction Level in Different Organizations

2010

Vision & Mission

Our Vision:
Become the best performing and most innovative financial solutions provider in the country.

Our Mission:
Create maximum possible value for all our stakeholders by adhering to the highest ethical standards. For our Customers: Relentless pursuit of customer satisfaction through delivery of top quality services. For our Shareholders: Maximize shareholders' wealth through a sustained return on their investments. For our Employees: Provide job satisfaction by making IDLC a centre of excellence with opportunity for career development. For the Society: Contribute to the well being of the society, in general, by acting as a responsible corporate citizen.

Our Goal:
Long term maximization of stakeholders' value in a socially responsible manner.

Our Corporate Philosophy:


Discharge our functions with proper accountability for actions and results and bind ourselves to the highest ethical standards.

Corporate Governance:
Corporate governance is the system by which companies are directed and controlled by the management in the best interest of all the stakeholders, thereby ensuring greater transparency and better and timely financial reporting.

May 06, 2010

Group-17; Sec-B

27

Comparing Job Satisfaction Level in Different Organizations

2010

The platform on which corporate governance principles are structured is that the Board of Directors is responsible for proper governance, which includes setting out Company's strategic aims, providing the necessary leadership to implement such aims, supervising the management of the business and reporting to the shareholders on their stewardship. The maintenance of effective corporate governance remains a key priority of the Board of IDLC Finance Limited. To exercise clarity about directors' responsibilities towards the shareholders, corporate governance must be dynamic and remain focused on the business objectives of the Company and create a culture of openness and accountability. Keeping this in mind, clear structure and accountabilities supported by well understood policies and procedures to guide the activities of the Company's management have been instituted. IDLC considers that its corporate governance practices comply with almost all the aspects of the SEC Notification No. SEC/CMMRRCD/2006-158/Admin/02-08 dated February 20, 2006 and almost all aspects of Bangladesh Bank's DFIM Circular No. 7 dated September 25, 2007. In addition, to establishing high standards of corporate governance, IDLC also considers best governance practices in its activities. The independent role of Board of Directors, separate and independent role of Chairman and Chief Executive Officer, distinct role of Company Secretary, Chief Financial Officer and Chief Compliance Officer, different Board committees allows IDLC to achieve excellence in best corporate governance practices. This statement outlines the Company's main corporate governance practices as on December 31, 2008.

Board of Directors Composition:


The Board of IDLC considers that its membership should comprise of directors with an appropriate mix of skills, experience and personal attributes that allow the directors, individually and the Board, collectively, to discharge their responsibilities and duties,

May 06, 2010

Group-17; Sec-B

28

Comparing Job Satisfaction Level in Different Organizations

2010

under the law, efficiently and effectively, understand the business of the Company and assess the performance of the management. The Board of IDLC comprises of ten directors who possess a wide range of skills and experience over a range of professions, businesses and services. All of them are nominated by their respective institutions except for the independent director. Each of our Directors brings in independent judgment and considerable knowledge to perform their roles effectively. The Board of Directors ensures that the activities of the Company are always conducted with adherence to strict and highest possible ethical standards and in the best interests of the stakeholders. The Directors are appointed by the shareholders in the Annual General Meeting (AGM). Casual vacancies, if any, are filled up by the Board in accordance with the stipulations of the Companies Act, 1994 and Articles of the Company. In addition, one third of the Directors retires from the Board every year in the AGM, but remains eligible for reelection.

Role and Responsibilities of the Board:


The Board is committed to the Company seeking to achieve superior financial performance and long term prosperity, while meeting stakeholders' expectations of sound corporate governance practices. The Board determines the corporate governance arrangements for the Company. As with all its business activities, the Board is proactive in respect of corporate governance and puts in place those arrangements which it considers are in the best interest of the Company and its shareholders, and consistent with its responsibilities to other stakeholders. The Board duly complies with the guidelines issued by Bangladesh Bank regarding the responsibility and accountability of the Board, its Chairman and Chief Executive/Managing Director, vide DFIM Circular No. 7 dated September 25, 2007. The Board of Directors is in full control of the Company's affairs and is also fully accountable to the shareholders. They firmly believe that the success of the Company

May 06, 2010

Group-17; Sec-B

29

Comparing Job Satisfaction Level in Different Organizations


largely depends on the credible corporate governance practices adopted by the

2010

Company. Taking this into consideration, the Board of Directors of IDLC sets out its strategic focus and oversee the business and related affairs of the Company. The Board also formulates the strategic objectives and policy framework for the Company. In discharging the above responsibilities, the Board caries out, inter alia, the following functions as per the charter of the Board and Bangladesh Bank's DFIM Circular No. 7, dated September 25, 2007:

Korean Development Leasing Corporation (KDLC), South Korea Determine, monitor and evaluate strategies, policies, management performance criteria and business plans Periodic and timely reporting to the shareholders on the affairs, progress and performance of the Company Ensuring proper decision-making and accountability structure throughout the Company so that the staff down the line is fully accountable to the corporate management

Monitoring of significant business risks and reviewing how they are managed as per Bangladesh Bank's "Core Risk Guidelines" Delegation to Board Committees and management and approval of transactions in excess of delegated level Approval of annual budgets including major capital expenditure proposals Critical evaluation of all proposals which require Board's approval and/or directives Regular review of financial performance and overdue situation Appointment and evaluation of the performance of CEO & Managing Director and Deputy Managing Director and General Managers Ensuring that the senior management team has the necessary skills and experience to perform their functions, effectively, in the best interests of the Company

Monitoring the adequacy, appropriateness and operation of internal controls Ensure that technology and information systems used in the organization are sufficient to operate the organization effectively and maintain competitiveness

May 06, 2010

Group-17; Sec-B

30

Comparing Job Satisfaction Level in Different Organizations Role of the Chairman:

2010

The Chairman of the Board is not the Chief Executive of the Company. The role of Chairman and CEO & Managing Director are independent and separate. The Chairman runs the Board while the CEO & Managing Director takes all executive decisions as delegated and empowered by the Board.

The Board of Directors of IDLC Finance Limited is committed to the highest standards of conduct in their relationships with its employees, customers, members, shareholders, regulators and the public. A Director of IDLC always:

Conduct for the Board Members

Seeks to use due care in the performance of his/her duties, be loyal to the Company, act in good faith and in a manner such Director reasonably believes to be not opposed to the best interests of the Company

Avoids i) appropriating corporate business opportunities for themselves that are discovered through the use of Company property or information or their position as Board Member; ii) using Company property or information, or their position as Board Member, for personal gain; and iii) competing with the Company

Endeavors to avoid having his or her private interests interfere with the interests of the Company Ensures that management is causing the Company's assets, proprietary information and resources to be used by the Company and its employees only for legitimate business purposes of the Company

Maintains the confidentiality of information entrusted to them in carrying out their duties and responsibilities, except where disclosure is approved by the Company or legally mandated or if such information is in the public domain

Endeavors to deal fairly, and should promote fair dealing by the Company, its employees and agents, with customers, suppliers and employees Complies and endeavors to ensure that the management is causing the Company to comply with applicable laws, rules and regulations

May 06, 2010

Group-17; Sec-B

31

Comparing Job Satisfaction Level in Different Organizations

2010

Avoids insider trading with respect to the purchase and sale of the Company's securities and buy or sell securities while in possession of material non-public information about the issuer of that security, whether the issuer is IDLC or another company

Endeavors to ensure that management is causing the Company to promote ethical behavior and to encourage employees to report evidence of illegal or unethical behavior to the CEO & Managing Director of the Company.

Board Meetings:
The meetings of the Board of Directors of IDLC are normally held at the Registered and Corporate Head Office of the Company. The meetings are held frequently, at least once in a quarter, to discharge its responsibilities and functions as mentioned above. Meetings are scheduled well in advance and the notice of each Board Meeting is given, in writing, to each Director by the Company Secretary. The Company Secretary, after approval by the Board's Executive Committee, prepares the detailed agenda for the meeting. The Board papers comprising the agenda, explanatory notes and proposed resolutions are circulated to the directors in advance for their review. The members of the Board have complete access to all information of the Company enabling them to work efficiently. The members of the Board are also free to recommend inclusion of any matter in the agenda for discussions. The Company Secretary and Chief Financial Officer always attends the Board Meeting and other senior management is invited to attend Board Meeting to provide additional inputs to the items being discussed by the Board and make necessary presentations. There are procedures, at IDLC, for keeping the Board up-to-date with the Company's activities and relevant external developments. These includes senior management presenting significant matters to the Board and it being able to seek further information on any issue relating to performance, strategy, outlook, etc. During the year ended on December 31, 2008 a total of seven (7) Board Meetings were held.

May 06, 2010

Group-17; Sec-B

32

Comparing Job Satisfaction Level in Different Organizations

2010

Internal Control:
The Board is responsible for ensuring that the Company has an adequate and effective control system in place. Although no system of internal financial control can provide absolute assurance against material misstatement or loss, the Company's internal control systems have been designed to provide the directors with reasonable assurance that assets are safeguarded against unauthorized use by the employees and/or management and/or third parties, transactions are authorized and properly recorded and material error and irregularities are either prevented or detected within a reasonable period of time. Properly designed management structure, clearly defined responsibilities, delegation of authorities, establishment of accountability at each level and system of periodic reporting and monitoring performance are the key elements of the internal control framework employed in IDLC.

Audit Committee:
The Audit Committee comprises of five Directors. The Company Secretary also acts as the Secretary of the Audit Committee. The Committee is headed by a director who has professional background in accounting and finance. The rules of the Audit Committee clearly lay down its authority, responsibility and specific duties. The Committee is empowered, among other things, to examine any matter relating to the financial affairs of the Company and to review all audit and inspection programs, internal control systems and procedures, accounting policies and adherence to compliance requirements, etc. This ensures that a sound financial reporting system is in place, which is well managed, providing accurate, appropriate and timely information to the Board of Directors and stakeholders. The Chief Risk & Compliance Officer has direct access to the Committee and it is directly reportable to the Board.

May 06, 2010

Group-17; Sec-B

33

Comparing Job Satisfaction Level in Different Organizations

2010

During the year under review, three meeting of the Audit Committee were held.

Functions and responsibilities of the Committee:

To assist the Board in fulfilling its oversight responsibilities including implementation of the objectives, strategies and overall business plans set by the Board for effective functioning of the Company

To review the financial reporting process, the system of internal control and management of financial risks and the Company's processes for monitoring compliance with laws and regulations and its own code of business conduct

To ensure that Company has adequate processes in place to safeguard the assets of the Company against unauthorized use by the employees/third parties and to ensure that expenses incurred by the Company are for the purposes of the Company

To evaluate whether management is setting the appropriate compliance culture by communicating the importance of internal control and the management of risk, and ensure that all employees have understanding of their roles and responsibilities

To review the arrangements made by the management for building a suitable Management Information System (MIS) including information technology system and its applications

To review the corrective measures taken by the management as regard the reports relating to fraud and forgery, deficiency in internal control or other similar issues detected by internal and external auditors and inspectors of the regulatory authorities

To review the activities and organizational structure of internal audit functions and ensure that no unjustified restrictions or limitations are made To do any other functions as the Board may require from time to time.

Executive Committee:
A three member Executive Committee headed by a Director is responsible for strategic and operational plans of the business. The matter related to ordinary business
May 06, 2010 Group-17; Sec-B

34

Comparing Job Satisfaction Level in Different Organizations

2010

operations of the Company and the matters that the Board of Directors, from time to time authorize, are vested in this Committee in accordance with the Statement of General and Operational Policies established and made by the Board of Directors. This Committee assists IDLC in taking prompt decisions and react swiftly to changes in the market-place as they occur. The Rules of the Executive Committee is framed by the Board. During the year under review, eleven Executive Committee meetings were held.

Credit Evaluation Committee (CEC):


The CEC evaluates all projects/proposals of financing activities of the Company from the risk point of view. The Committee is headed by the CEO & Managing Director and consists of six members. The members of the Committee are CEO & Managing Director, Deputy Managing Director, Head of Credit Risk Management Department, CFO and Head of Corporate Division.

Communications and Relationship with Shareholders:


It is the Company's policy that all external communications by the Company will:

be factual and subject to internal vetting and authorization before issue not omit material information be timely and expressed in a clear and objective manner.

IDLC strongly believes that all stakeholders should have access to complete information on its activities, performance and product initiatives. The Company's web site www.idlc.com displays, interalia, the annual report, half yearly report, product offerings, recent announcements, presentations and events update. The Company reports to the shareholders, twice a year, through half yearly report and detailed annual report. Every shareholder has the right to attend the annual general meeting, where they can meet and communicate with the directors and express their views regarding the Company's business, its future prospects and other matters of interest. The shareholders are always encouraged to attend the meeting or, if unable to attend, may appoint proxies. All disclosures required by the Securities and Exchange Commission, Listing Regulations of Dhaka and Chittagong Stock Exchanges and Bangladesh Bank are

May 06, 2010

Group-17; Sec-B

35

Comparing Job Satisfaction Level in Different Organizations

2010

made adequately and promptly. In addition to ensuring timely compliance, this also enables dissemination of information to all stakeholders and the public.

Preparation and Presentation of Financial Statements and Directors' Responsibility:


The Companies Act 1994 requires the directors to prepare financial statements for each accounting year. The Board of Directors accepts the responsibility for preparation of the financial statements, maintaining adequate records for safeguarding the assets of the Company, preventing and detecting fraud and/or other irregularities, selecting suitable accounting policies and apply those policies, consistently, and making reasonable and prudent judgments and estimates where necessary.

Professional Code of Conduct:


In accordance with approved and agreed Code of Conduct, IDLC employees shall:

act with integrity, competence, dignity and in an ethical manner when dealing with customers, prospects, colleagues, agencies and public act and encourage others to behave in a professional and ethical manner that will reflect positively on IDLC employees, their profession and on IDLC, at large. strive to maintain and improve the competence of all in the business use reasonable care and exercise independent professional judgement not restrain others from performing their professional obligations maintain knowledge of and comply with all applicable laws, rules and regulations disclose all conflicts of interest deliver professional services in accordance with IDLC policies and relevant technical and professional standards respect the confidentiality and privacy of customers, people and others with whom they do business not engage in any professional conduct involving dishonesty, fraud, deceit or misrepresentation or commit any act that reflects adversely on their honesty, trustworthiness or professional competence

May 06, 2010

Group-17; Sec-B

36

Comparing Job Satisfaction Level in Different Organizations

2010

IDLC employees have an obligation to know and understand not only the guidance contained in the Code of Conduct, but also the spirit on which it is base

Risk Management Framework:


Risk is the element of uncertainty or possibility of loss that prevail in any business transaction in any place, in any mode and at any time. Risk is an integral part of financing business. Risk management entails the adoption of several measures to strengthen the ability of an organization to cope with the vagaries of the complex business environment in which it operates. IDLC always concentrates on delivering high value to its stakeholders through appropriate tradeoff between risk and return. A well structured and proactive risk management system is in place within the Company to address risks relating to credit, market, liquidity and operations. Risk grading is assigned at the inception of lending considering the industry, business, financial and management risk associated with the financing. The Company has different committees for risk management and appropriate internal control measures are also in place to mitigate risk. In addition to the industry best practices for assessing, identifying and measuring risks, IDLC also considers guidelines for managing core risks of financial institutions issued by the Country's Central Bank, Bangladesh Bank, vide FID Circular No. 10 dated September 18, 2005 for management of risks.

Credit Risk:
Credit risk is the possibility that a borrower or counter party will fail to meet agreed obligations. Thus managing credit risk for efficient management of a financial institution (FI) has become the most crucial task. Given the fast changing, dynamic global economy and the increasing pressure of globalization, liberalization, and consolidation it is essential that FIs have robust credit risk management policies and procedures that are sensitive and responsive to these changes. At IDLC, credit risk may arise in the following forms:

May 06, 2010

Group-17; Sec-B

37

Comparing Job Satisfaction Level in Different Organizations


2010

Default risk Exposure risk Recovery risk Counter party risk Related party risk Legal risk Political risk

To encounter and mitigate credit risk the following control measures are in place at IDLC:

Multilayer approval process Policy for maximum sector and group exposure limit Policy for customers maximum asset exposure limit Mandatory search for credit report from Credit Information Bureau Looking into payment performance of customer before financing Annual review of clients Adequate insurance coverage for funded assets Vigorous monitoring and follow up by Special Assets Management Team Strong follow up of compliance of credit policies by Operational Risk Management Department Taking collateral Seeking external legal opinion Maintaining neutrality in politics and following arm's length approach in related party transactions Regular review of market situation and industry exposure

The Credit Evaluation Committee (CEC) regularly meets to review the market and credit risk related to lending and recommend and implement appropriate measures to counter associated risks. The CEC critically reviews projects considering the current global financial crisis and its probable impact on the project.

May 06, 2010

Group-17; Sec-B

38

Comparing Job Satisfaction Level in Different Organizations

2010

An independent Credit Risk Management Department is in place, at IDLC, to scrutinize projects from a risk-weighted point of view and assist the management in creating a high quality credit portfolio and maximize returns from risk assets.

Market Risk:
Market risk refers to the risk of fluctuation in a variety of markets such as interest rates, prices of securities where the values of assets and liabilities can change and there exists the risk of incurring losses. The Asset Liability Committee (ALCO) of the Company regularly meets to assess the changes in interest rate, market conditions, carry out asset liability maturity gap analysis, re-pricing of products and thereby takes effective measures to monitor and control interest rate risk. To encounter market risk we are negotiating for facilities that match the maturity structure with ideal interest rate, maintaining a balanced diversification in investments and maintaining prudent provisioning policies. IDLC has also strong access to money market and credit lines at a competitive rate through good reputation, strong earnings, financial strength and credit rating. However, in order to mitigate any adverse effect that results from fluctuating interest rate in future, we are planning to issue bonds, commercial papers and fixed rate long term loans to raise funds.

Liquidity Risk:
Liquidity risk arises when a company is unable to meet the short term obligation to its lenders and stakeholders. This arises from the adverse mismatch of maturities of assets and liabilities. Liquidity requirements are managed on a day-to-day basis by the Treasury Division which is responsible for ensuring that sufficient funds are available to meet short term obligations, even in a crisis scenario, and for maintaining a diversity of funding sources. Treasury Division maintains liquidity based on historical requirements anticipated funding requirements from operation, current liquidity position, collections from

May 06, 2010

Group-17; Sec-B

39

Comparing Job Satisfaction Level in Different Organizations


financing, available sources of funds and risks and returns. The Asset Liability

2010

Committee also oversees the asset liability maturity position and recommend and implement appropriate measure to encounter liquidity risk.

Operational Risk:
Operational risk is the potential loss arising from a breakdown in company's systems and procedures, internal control, compliance requirements or corporate governance practices that results in human error, fraud, failure, damage of reputations, delay to perform or compromise of the company's interests by employees. Operational risk may also arise from the following:

Turnover of trained staff Risk of insider dealings Leakage of sensitive information Shortcomings of organizational structure Risk of falling in credit ratings Money laundering Changes in statutory requirements Technological obsolescence

Appropriate internal control measures are in place, at IDLC, to address operational risks. IDLC has also established an Operational Risk Management Department (ORMD) to address operational risk and to frame and implement policies to encounter such risks. ORMD assesses operational risk across the Company as a whole and ensures that an appropriate framework exists to identify, assess and mange operational risk. The function of ORMD is to constant vigilance against leakage of Shareholders value by identify, assess, measure, manage and transfer operational risk resulting from inadequate or failed internal processes, people and system or from external events. ORMD also develops policies, processes and procedures for managing operational risk in all of the company products, activities, processes and systems by identifying and assessing the operational risk inherent in all our products, activities, processes and systems.

May 06, 2010

Group-17; Sec-B

40

Comparing Job Satisfaction Level in Different Organizations

2010

In particular, the following risk management measures are present at IDLC to address operational risk:

Effective internal audit function throughout the organization with direct access of Chief Internal Auditor to the Audit Committee and Board Suitable delegated authority level Awareness throughout the organization on "Know Your Customer" policy Maintenance of assets through maintenance agreement with vendor Proper risk transfer measure by taking insurance coverage for all assets of the Company Infusing organizational values and ethics in employees Strict compliance of Employees Code of Conducts Regular compliance audit in relation to reporting requirements to regulatory bodies and other stakeholders Creating conducive working environment for the staff Implementation of computer based MIS system Implementation of proper backup system Regular upgrading of hardware and software to keep it up to state of the art level.

Business volume risks:


At IDLC, business volume risk may arise in the form of risk of falling business volumes and market share, risk of being overtaken and losing leadership position and risk of over trading which may affect profitability due to volatile revenues and reduced spread earnings, credit rating and reputation. Risk of over trading may lead to insufficient capital. To encounter and mitigate business volume risk the following risk mitigation measures are in place, at IDLC:

Regular review of impact of global economic meltdown and taking appropriate measure Innovative and convenient financial products and services

May 06, 2010

Group-17; Sec-B

41

Comparing Job Satisfaction Level in Different Organizations


2010

Taking prompt action on customer complaints Frequent assessment of clients satisfaction Regular review of performance against budget and targets Review and analysis of competitor's performance. Rating Moderate Moderate Moderate Low Low

Type of Risk Credit Risk Market Risk Liquidity risk Operational risk Business volume risk

Assessment of the riskiness of the operation:


We estimate our risk exposure based on our own assessment of the operations as well as the market perception to be as follows: To encounter and mitigate credit risk the following control measures are in place at IDLC:

Multilayer approval process Policy for maximum sector and group exposure limit Policy for customers maximum asset exposure limit Mandatory search for credit report from Credit Information Bureau Looking into payment performance of customer before financing Annual review of clients Adequate insurance coverage for funded assets Vigorous monitoring and follow up by Special Assets Management Team Strong follow up of compliance of credit policies by Operational Risk Management Department Taking collateral Seeking external legal opinion Maintaining neutrality in politics and following arm's length approach in related party transactions

May 06, 2010

Group-17; Sec-B

42

Comparing Job Satisfaction Level in Different Organizations

2010

Regular review of market situation and industry exposure

The Credit Evaluation Committee (CEC) regularly meets to review the market and credit risks related to lending and recommend and implement appropriate measures to counter associated risks. The CEC critically reviews projects considering the current global financial crisis and its probable impact on the project. An independent Credit Risk Management Department is in place, at IDLC, to scrutinize projects from a risk-weighted point of view and assist the management in creating a high quality credit portfolio and maximize returns from risk assets.

Market Risk:
Market risk refers to the risk of fluctuation in a variety of markets such as interest rates, prices of securities where the values of assets and liabilities can change and there exists the risk of incurring losses. The Asset Liability Committee (ALCO) of the Company regularly meets to assess the changes in interest rate, market conditions, carry out asset liability maturity gap analysis, re-pricing of products and thereby takes effective measures to monitor and control interest rate risk. To encounter market risk we are negotiating for facilities that match the maturity structure with ideal interest rate, maintaining a balanced diversification in investments and maintaining prudent provisioning policies. IDLC has also strong access to money market and credit lines, at a competitive rate, on accounts of its good reputation, strong earnings, financial strength and credit rating. However, in order to mitigate any adverse effect that results from fluctuating interest rate in future, we are planning to issue bonds, commercial papers and negotiate fixed rate long term loans to raise funds.

May 06, 2010

Group-17; Sec-B

43

Comparing Job Satisfaction Level in Different Organizations

2010

Liquidity Risk:
Liquidity risk arises when a company is unable to meet the short term obligations to its lenders and stakeholders. This arises from the adverse mismatch of maturities of assets and liabilities. Liquidity requirements are managed on a day-to-day basis by the Treasury Division, which is responsible for ensuring that sufficient funds are available to meet short term obligations, even in a crisis, and for maintaining a diversity of funding sources. The Treasury Division maintains liquidity based on historical requirements, anticipated funding requirements from operation, current liquidity position, collections from financing, available sources of funds and risks and returns. The Asset Liability Committee also oversees the asset liability maturity position and recommends and implements appropriate measures to encounter liquidity risk.

Operational Risk:
Operational risk is the potential loss arising from a breakdown in company's systems and procedures, internal control, compliance requirements or corporate governance practices that results in human error, fraud, failure, damage of reputations, delay to perform or compromise of the company's interests by employees. Operational risk may also arise from the following:

Turnover of trained staff Risk of insider dealings Leakage of sensitive information Shortcomings of organizational structure Risk of worsening credit ratings Money laundering Changes in statutory requirements Technological obsolescence

May 06, 2010

Group-17; Sec-B

44

Comparing Job Satisfaction Level in Different Organizations

2010

Appropriate internal control measures are in place, at IDLC, to address operational risks. IDLC has also established an Operational Risk Management Department (ORMD) to address operational risks and to frame and implement policies to encounter such risks. ORMD assesses operational risk across the Company, as a whole, and ensures that an appropriate framework exists to identify, access and manage operational risk. The function of ORMD is to constant vigilance against leakage of Shareholders value by identifying, assessing, measuring, managing and transferring operational risk resulting from inadequate or failed internal processes, people and system or from external events. ORMD also develops policies, processes and procedures for managing operational risk in all of the company products, activities, processes and systems by identifying and assessing the operational risk inherent in all our products, activities, processes and systems. In particular, the following risk management measures are present at IDLC to address operational risks:

Effective internal audit function throughout the organization with direct access of Chief Internal Auditor to the Audit Committee and Board Suitable delegated authority level Awareness throughout the organization on "Know Your Customer" policy Maintenance of assets through maintenance agreement with vendor Proper risk transfer measures by taking insurance coverage for all assets of the Company Infusing organizational values and ethics in employees Strict compliance of Employees Code of Conduct Regular compliance audit in relation to reporting requirements to regulatory bodies and other

Stakeholders:

Creating conducive working environment for the staff Implementation of computer based MIS system
Group-17; Sec-B

May 06, 2010

45

Comparing Job Satisfaction Level in Different Organizations


2010

Implementation of proper backup system Regular upgrading of hardware and software to keep it up to state-of-the-art level.

Business volume risks:


At IDLC, business volume risk may arise in the form of risk of falling business volumes and market share, risk of being overtaken and losing leadership position and risk of over trading which may affect profitability due to volatile revenues and reduced spread earnings, credit rating and reputation. Risk of over trading may lead to insufficient capital. To encounter and mitigate business volume risk the following risk mitigation measures are in place, at IDLC:

Regular review of impact of global economic meltdown and taking appropriate measures Innovative and convenient financial products and services Taking prompt action on customer complaints Frequent assessment of clients satisfaction Regular review of performance against budget and targets Review and analysis of competitor's performance

Assessment of the riskiness of the operation:


We estimate our risk exposure based on our own assessment of the operations as well as the market perception to be as follows: Type of Risk Credit Risk Market Risk Liquidity risk Operational risk Business volume risk Rating Moderate Moderate Moderate Low Low

May 06, 2010

Group-17; Sec-B

46

Comparing Job Satisfaction Level in Different Organizations

2010

Management Committee
1.Selim RF Hussain CEO & Managing Director

2.Mr. Arif Khan Deputy Managing Director

3.Mr. H. M. Ziaul Hoque Khan General Manager, Chief FinancialOfficer & CompanySecretary 6. Shaikh Kamruzzaman Deputy General Manager Head of Personal Finance 9.Asif Saad Bin Shams Deputy General Manager & Head of Credit Risk Management

4.M. Jamal Uddin Deputy General Manager & Head of Corporate

5.Arifur Rahman Deputy General Manager & Head of Human Resources 8.Bilquis Jahan Deputy General Manager & Head of Credit Administration Department

7.Mir Tariquzzaman Deputy General Manager & Chief Technology Officer (CTO) 8. Zahid Ibne Hai Deputy General Manager & Head of SME Divisio

Board of Directors
Chairman

1. Anwarul Huq Deputy Chairman Reliance Insurance Limited Nominated by Reliance Insurance Limited

Directors

1.Aziz Al-Kaiser Chairman The City Bank Limited Nominated by the City Bank Limited

2.Rubel Aziz Director The City Bank Limited Nominated by the City Bank Limited

3.Ms. Meherun Haque Director The City Bank Limited Nominated by the City Bank Limited

May 06, 2010

Group-17; Sec-B

47

Comparing Job Satisfaction Level in Different Organizations

2010

4.K Mahmood Sattar Managing Director & CEO The City Bank Limited Nominated by the City Bank Limited

5.Mr. Yongbok Jo Director The City Bank Limited Nominated by the City Bank Limited

6.Mr. Md. Habibur Rahman Mollah Director Transcom Group Nominated by the Transcom Group

7.Mr. Md. Rezaul Karim Director(Additional) Sadharan Bima Corporation Nominated by Sadharan Bima Corporation

8.Mr. A.K.M. Shaheed Reza Director Marcantile Bank Limited Nominated by Mercantile Bank Limited

9.Mr.Farooq Sobhan Independent Director Bangladesh Enterprise Institute (BEI) Nominated by Bangladesh Enterprise Institute (BEI)

CEO & Managing Director


Selim R.F. Hussain Ex-Officio

May 06, 2010

Group-17; Sec-B

48

Comparing Job Satisfaction Level in Different Organizations

2010

ICB
Objectives:
To encourage and broaden the base of investment. To develop the capital market. To provide for matters ancillary thereto. To mobilize savings. To promote and establish subsidiaries for business development

Business Policy:
To act on commercial consideration with due regard to the interest of industry, commerce, depositors, investors and to the public in general. To provide financial assistance to projects subject to their economic and commercial viability. To arrange consortium of financial institutions including merchant banks to provide equity support to projects and thereby spread the risk of underwriting. To develop and encourage entrepreneurs. To diversify investments. To induce small and medium savers for investment in securities.

May 06, 2010

Group-17; Sec-B

49

Comparing Job Satisfaction Level in Different Organizations


To create employment. To encourage Investment in IT sector. To encourage Investment in joint venture capital/project.

2010

Basic Functions:
Underwriting of initial public offering of shares and debentures Underwriting of right issue of shares Direct purchase of shares and debentures including Pre-IPO placement and equity participation Providing lease finance to industrial machinery and other equipments singly or by forming syndicate Managing investors' Accounts Managing Open End and Closed End Mutual Funds Operating on the Stock Exchanges Providing investment counsel to issuers and investors Participating in Government divestment Program Participating in and financing of, joint-venture projects Dealing in other matters related to capital market operations Trusty, Custodian, Bank Guarantee Consumer Credit

Information Technology and Management:


The advanced and user-friendly ICT system deployed by ICB has won appreciation of all its stake holders. The comprehensive computer strategy encompassing all the features of an effective and intelligent structure employs modern and appropriate

May 06, 2010

Group-17; Sec-B

50

Comparing Job Satisfaction Level in Different Organizations

2010

hardware and software. The system is also equipped with built-in flexibility for rapid transformation and adjustment as and when the situation warrants. The above developments and efforts have helped ICB to computerize its overall activities in an orderly manner. Utmost priority is given to recruitment of skilled and qualified manpower to run the system smoothly with time bound approach. Sufficient numbers of computers, printers and other hardware are procured every year. Computer personnel working in ICB has developed a large number of customized software in-house which are being used regularly. In addition, some software requiring sophisticated and extraneous, inputs have also been procured from outside sources. This software handles a wide array of activities of various departments at the head office and of the branches. The important ones of these software are Merchandising Operation Management System, Mutual Funds Scrip and Ownership Management System, Stock Exchange Index Publication, IPO Management System, Personnel Management Information System, Project Information Management System, Meeting Minutes Storage & Retrieval, Law Suits Tracking, Unit Sale and Repurchase Management System, Financial Feasibility Analysis for Projects, Accounting Application (General Ledger, Staff Loan, Payroll, Unit Lien, FDR/TDR, Lease Finance, Project Loan, Fixed Asset Management, Inventory), Unit Reconciliation, Mutual Fund Reconciliation, Share Reconciliation and Telephonic Transaction and Inquiry System (TTIS). As a result of dematerialization of securities in growing numbers related to bigger number of companies under CDS, scrip-less trading is increasing quite fast. The relevant software has been modified accordingly. ICB has taken broad band internet connection to get access to internet for its head office and branch

IT Planning Process in ICB:


ICB has emerged as one of the leaders in computerization and software developers in Bangladesh. ICB initiated computerization programme in 1985. Thus it is one of the very first local financial institutions to adopt computers and computing software systems in Bangladesh. Since then ICB has been continuously upgrading the system

May 06, 2010

Group-17; Sec-B

51

Comparing Job Satisfaction Level in Different Organizations

2010

according to specific long-term plans to keep pace with modern financial world. When planning for long-term sustainable IT framework throughout the organization the prime factors ICB always considered are: IT friendly process that is easily adaptable to computer technologies. A solid computerization environment and platform of choices which will serve for a long time and can be easily tailored for future enhancements/up gradation. A solid hardware and network platform that is stable, scalable and have high performance with a special focus on future business diversification, mean-time-toresponse. Scope of future enhancement both in terms of business process and in terms of IT infrastructure so that ICB can always keep pace with the fast changing world of financial operations. A separate division dedicated to IT with enough expertise to carry on future enhancement and development process and system support. The computerization plan should put emphasis on selection of hardware, network technology and platform software like RDBMS choice management support.

Computer hardware installation:


In 1998 latest model multi users & Multi tasking computer and high-speed network systems were installed. The systems comprise of Two Unix Servers with Pentium Pro multiprocessors, One RAID (Redundant Array of Independent Disk) Subsystems, Two Windows NT Servers and 90 PCs. are procured phase by phase to cater to the need of customers. The system has been upgraded by the latest available technology. The new set-up is a cluster server system consisting of two powerful servers.

May 06, 2010

Group-17; Sec-B

52

Comparing Job Satisfaction Level in Different Organizations Network Systems:

2010

Four (Two 48 ports and Two 24 ports) network switches are installed for networking of four floors and two backbone switches are used to interconnect the Four network switches.

RDBMS Software:
As most of the systems of ICB are data entry with high transaction rate and high MIS payload, Oracle7 was chosen as the RDBMS system. Now Oracle 10g, the latest version of Oracle is being used.

Computerization of Branch Offices:


Oracle based customized software's are installed in the ICB branch offices. Necessary training was given to officers of branches offices for smooth operations of the installed software.

Customized Software:
Thirteen (13) customized software's have been developed for total automation of Operational activities of ICB.

Web-page and Tele-banking:


ICB's own web-page was launched and TTIS (Telephonic Transaction and Inquiry System) Software was installed to provide better service to the investors of all levels at home and abroad. Many Investors have done registration with the Investor's Department to get the service.

Internet:
Head office and branch offices are connected with internet. Any department or branch office can download required information from website web server.

May 06, 2010

Group-17; Sec-B

53

Comparing Job Satisfaction Level in Different Organizations Manpower Support:

2010

Corporation has built up a strong technical and managerial manpower setup in its IT area. To cope with the latest development in IT, extensive training is being given to the IT personnel regularly. With all these in mind, in 1996 ICB decided to restructure and refurnish its IT infrastructure in a whole new way taking advantage of the-then latest technologies with an estimated financial involvement of Tk. 3.00 crore (approx.). Today's ICB computerization is the result of the above systematic planning.

Future Roadmap:
A great deal of planning effort of the Corporation has been towards future IT structure and related operations. In the roadmap the following goals have been set The computerization plan should put emphasis on selection of hardware, network technology and platform software like RDBMS choice management support. Establishing ICB firmly on IT industry not only as a consumer but also as a formidable IT solution provider especially in the financial sector. ICB believes its huge experience over the years and infrastructure are something that can be offered in the financial arena of Bangladesh and abroad on business basis in the future. ICB is in the line of a unified system with end-to-end operational activity solution and MIS. With this in mind there is a plan for future integration and re-engineering of the existing software system into an integrated Enterprise Resource Planning (ERP). ICB is planning to connect all its branch operation online with its head office system. Online integrated branch banking with the central data depository in head office based on a strong WAN connection is the next in line. ICB is planning to provide web-based online services to its clients. The online system will incorporate a business-to-client service for end-users and a business-to-business service for corporate sector and other business associates.

May 06, 2010

Group-17; Sec-B

54

Comparing Job Satisfaction Level in Different Organizations

2010

In the long run, ICB may consider establishing a separate business entity on IT, if found viable. ICB is considering going for starting full fledged activities in the field of IT area.

ICB Milestones:
Date/Establishment Commencement 1st October 1976 13th June 1977 25th April 1980 10th April 1981 17 June 1984 19 May 1985 6 June 1986 8 June l987 16 May 1988 7 May 1992 30 June l995 23 July 1996 11 December 1997 16 January 1998 12 October 1998 22 April 1999 5 and 6 July 2000

Milestones Date of Establishment/ Commencement ICB lnvestors'Scheme First ICB Mutual Fund ICB Unit Fund Second ICB Mutual Fund Third ICB Mutual Fund Fourth ICB Mutual Fund Fifth ICB Mutual Fund Sixth ICB Mutual Fund Nomination as the country's Nodal DFI in SADF Seventh ICB Mutual Fund Eighth ICB Mutual Fund Purchase of own Land & Building Participation in Equity of SARF Advance Against ICB Unit Certificates Scheme Lease Financing Scheme "The Investment Corporation of Bangladesh (Amendment) Act, 2000" passed in the Jatiya Sangsad (Parliament) and Honorable President's assent thereof

Formation and Registration of 3 Subsidiary 5 December 2000 Companies of ICB Computer Training Program 25 March 2001 Commencement of business operations of the subsidiary companies ICB Capital Management Ltd. 01 July 2002 ICB Asset Management Company Ltd. ICB Securities Trading Company Ltd. Registration as a Trustee with SEC Registration as a Custodian with SEC Bank Guarantee Scheme
May 06, 2010

01 July 2002 13 August 2002 20 August 2002 20 August 2002 21 June 2003

Group-17; Sec-B

55

Comparing Job Satisfaction Level in Different Organizations


Advance Against ICB Mutual Fund Certificate Scheme Consumers Credit Scheme Received BASIS-SEDF Best IT Use Award in SOFTEXPO,2004 21 June 2003 15 February 2004 28 November 2004

2010

Share Capital Ownership Pattern Classification of Shareholders as on 30 June, 2008 No. of No. of Percentage Shareholders Shares 1 1350000 27.00 4 2 2 2 3 2 1 12 1109 1138 1136900 1281550 617781 454263 28286 110 5750 17454 107906 5000000 22.74 25.63 12.35 9.08 0.57 0.01 0.12 0.34 2.16 100.00

Shareholder Government of Bangladesh State Owned Commercial Banks Development Financial Institutions Insurance Corporations Denationalized Private Commercial Banks Private Commercial Banks Foreign Commercial Banks First BSRS Mutual Fund Other Institutions General Public Total

Existing Board:
CHAIRMAN OF THE BOARD Dr. M. Khairul Hossain Professor Department of Finance University of Dhaka MANAGING DIRECTOR AND DIRECTORS

May 06, 2010

Group-17; Sec-B

56

Comparing Job Satisfaction Level in Different Organizations

2010

1.Md. Humayun Kabir Managing Director

2.Brigadier General Arif Ahmed Chowdhury Director Army Head Quarter, Dhaka Cantonment

3.Mr. Khandakar Muzharul Haque Executive Director Bangladesh Bank

4.Mr. Md. Mizanur Rahman Managing Director Bangladesh Shilpa Bank

5.Mr. Md. Mizanur Rahman Managing Director(Add. Charge) Bangladesh Shilpa Rin Sangstha

6.Mr. Sirajuddin Ahmed Chowdhury CEO/MD Sonali Bank Ltd.

7.Syed Abu Naser Bukhtear Ahmed Managing Director & CEO Agrani Bank Ltd.

8.Mr. S. M. Aminur Rahman CEO/MD Janata Bank Ltd.

9.Mr. Md. Rezaul Karim Managing Director(Additional Charge) Sadharan Bima Corporation

SECRETARY Md. Moshiur Rahman Deputy General Manager

May 06, 2010

Group-17; Sec-B

57

Comparing Job Satisfaction Level in Different Organizations Senior Executives :


MANAGING DIRECTOR

2010

Md. Humayun Kabir

1.Md.Khorshed Hossain Operations wing

2.Dina Ahsan Administration wing

3.Md.Iftikhar-Uz-Zaman

May 06, 2010

Group-17; Sec-B

58

Comparing Job Satisfaction Level in Different Organizations

2010

SURVEY, COMPARISON & INTERPRETATION

May 06, 2010

Group-17; Sec-B

59

Comparing Job Satisfaction Level in Different Organizations

2010

ICB
I am aligned with the organizations mission
4% 4% Yes 92% No NO Comment

IDLC
I am aligned with the organizations mission
16% 4% Yes 80% No

Interpretation: Here 92% employees say about their alignment with the organization. It is good.

Interpretation: Here 80% employees say about their alignment with the organization. It is good but not as much as ICB.

I feel involved in decisions that affect our organizational community


8% 24% 68% Yes No No Comment

I feel involved in decisions that affect our organizational community


4% 32% 64% Yes No No Comment

Interpretation: Here 68% employees say about their involvement in decision making in the organization. It is good.

Interpretation: Here 64% employees say about their involvement in decision making in the organization. It is not as good as ICB.

May 06, 2010

Group-17; Sec-B

60

Comparing Job Satisfaction Level in Different Organizations

2010

I have the materials and equipment that I need in order to do my work


4% 20% 76% Yes No No Comment

I have the materials and equipment that I need in order to do my work


8% 4% Yes 88% No No Comment

Interpretation: Here 76% employees say about their availability of materials in working process. It is satisfactory. It indicates their higher rate of productivity.

Interpretation: Here 88% employees say about their availability of materials in working process. It is excellent. It indicates their higher rate of productivity which is higher than ICB.

My managers review my progress


8% 8% Yes No 84% No Comment

My managers review my progress


4% 4% Yes 92% No No Comment

Interpretation: Here 80% employees say about that their managers review their progress. It means that they are satisfied with their superiors.

Interpretation: Here 92% employees say about that their managers review their progress. It means that they are satisfied with their superiors. In private firm it is mandatory. Because here the employees are rewarded based on their performance.

May 06, 2010

Group-17; Sec-B

61

Comparing Job Satisfaction Level in Different Organizations

2010

Productive time spent working on the tasks assigned to me


12% 4% 4% 0% 32% 48% Almost all of the time

Productive time spent working on the tasks assigned to me


4% 4% 4% 0% 29% 59% Almost all of the time Most of the time Half of the time 1/4th of the time less than 1/4th of the time

Interpretation: Here an individual employees participation to spend time in productive sector is 48%. It means almost 50% time is spent in productivity,

Interpretation: Here an individual employees participation to spend time in productive sector is 59%. It means almost 60% time is spent in productivity; this shows relatively higher percentage than ICB.

I meet the target quotas and goals


8% 0% 8% 34% 25% Somewhat Agree Strongly Agree 25% Strongly Disagree Somewhat Disagree Neutral

I meet the target quotas and goals


0% 0% 0% 16% 4% Strongly Disagree Somewhat Disagree Neutral 80% Somewhat Agree Strongly Agree

Interpretation: Here an individual employee believes that 34% target quotas are met by him or her. This also shows his or her high productivity.

Interpretation: Here an individual employee believes that 80% target quotas are met by him or her. This also shows his or her higher productivity than the former organization.

May 06, 2010

Group-17; Sec-B

62

Comparing Job Satisfaction Level in Different Organizations

2010

Overall productivity in getting the job done


4% 13% 0% 39% 44% Excellent Good Average Below average

Overall productivity in getting the job done


4% 32% 64% Good Average 0% 0% Excellent

Interpretation: Here it is expressed that overall productivity level is 44% good and 39% excellent. It means that overall productivity level is good but not so high.

Interpretation: Here it is expressed that overall productivity level is 32% good and 64% excellent. It means that overall productivity level is higher than ICB and the rate is really good for an organization.

I respond quickly and courteously to fulfill customers' needs


0% 4% 8% 4% 4% 0% Strongly Disagree Somewhat Disagree Neutral Somewhat Agree

I respond quickly and courteously to fulfill customers' needs


0% 4% 48% 16% 16% 16% Strongly Disagree Somewhat Disagree Neutral

80%

Interpretation: Here it is expressed that an employee responds courteously and quickly to fulfill customers need is 80%. It means that they are customer driven.

Interpretation: Here it is expressed that an employee responds courteously and quickly to fulfill customers need is 48%. It means that they are not so customer driven and it also shows that in spite of being same natured business in private firm they are busier about their performance.

May 06, 2010

Group-17; Sec-B

63

Comparing Job Satisfaction Level in Different Organizations

2010

I look forward to going to work on SUNDAY morning


16% 4% Yes 80% No No Comment

I look forward to going to work on SUNDAY morning


16% 4% Yes 80% No No Comment

Interpretation: Here the absenteeism rate is defined. The absenteeism rate is lower here. Because the rate of presence in Sunday is 80%. It indicates their job satisfaction.

Interpretation: Here the absenteeism rate is defined. The absenteeism rate is lower here. Because the rate of presence in Sunday is 80%. It indicates their job satisfaction. It indicates the same percentage as ICB.

Most of the time Im absent because


20% 0% 12% 16% 52% 0% 0% Unsafe Working Conditions Excessive Rework Travel Distance Poor Craft Supervision Poor Overall Management

Most of the time Im absent because


0% 0% 4% 16% 0% 80% 0% Travel Distance Unsafe Working Conditions Excessive Rework

Poor Craft Supervision

Interpretation: Here the reason for absence is indicated. It is indicated here that personal family illness covers 52% that means that employee are satisfied. Because they become absent due to personal illness but not for any mismanagement of the organization.

Interpretation: Here the reason for absence is indicated. It is indicated here that personal family illness covers 80% that means that employee are fully satisfied. Because they become absent due to personal illness but not for any mismanagement of the organization. It is also clear here that comparing to Public organization here the due to excessive work and mismanagement are relatively lower.

May 06, 2010

Group-17; Sec-B

64

Comparing Job Satisfaction Level in Different Organizations

2010

There are more positive than negative aspects to my job


8% 32% 48% 4% 4% 4% Strongly Disagree Somewhat Disagree Neutral Somewhat Agree

There are more positive than negative aspects to my job


16% 4% 0% 16% 16% 48% Strongly Disagree Disagree Neutral Agree

Interpretation: Here the turnover rate is identified. It shows that employees want to be in this organization because here their positive impact percentage is almost 80%. That is satisfactory.

Interpretation: Here the turnover rate is identified. It shows that employees want to be in this organization because here their positive impact percentage is almost 64% which is not as high as ICB. But it remains above 50%.

What are your reasons for joining


4% 16% 24% 0% 0% 4% 4% Referred by a friend Fringe benefits Reputation as a good place to work

What are your reasons for joining


4% 0% 0% 4% 4% 8% Referred by a friend

48%

40%

40%

Fringe benefits

Interpretation: Here obviously it is proved that ICB is a renowned organization and for this reason the employees want to come here and stay here. So in order to build up their career they have chosen it.

Interpretation: Here obviously it is proved that IDLC is a renowned organization and for this reason the employees want to come here and stay here. So in order to build up their career they have chosen it. But the comparison shows that IDLC is in front than to ICB.

May 06, 2010

Group-17; Sec-B

65

Comparing Job Satisfaction Level in Different Organizations

2010

What could be the possible reasons for leaving the


2% 2% 12% 5% 7% 0% 14% 9% 14% Benefits Higher Pay

4% 0%

What could be the possible reasons for leaving the


0% 0% 0% 0% 8% 0% 8% Higher Pay

35%

80% Better job opportunity Commute

Benefits

0%

Better job opportunity Commute

Interpretation: Here it is noted that in order to change the career the employee will change their job. But due to the problems with the organization the turnover rate is minimum. So they are properly satisfied.

Interpretation: Here it is noted that if the employee gets better opportunity he or she will change their job. But due to the problems with the organization the turnover rate is minimum. So they are properly satisfied. The rate of staying in the organization is higher.

Have you changed jobs in the last 12 months?


0% 0% 0% 16% 72% 12% No Once 2 times 3 times or more 4 times or more No answer 16%

Have you changed jobs in the last 12 months?


0% 4% 16% 0% No Once 64% 2 times 3 times or more 4 times or more No answer

Interpretation: Here the no result doesnt indicate negative. It means the loyalty of an employee to the employee. As the rate of turnover is lower, the employees are subsequently satisfied.

Interpretation: Here the no result doesnt indicate negative. It means the loyalty of an employee to the employee. As the rate of turnover is lower than but not as much as ICB, the employees are subsequently satisfied. Here the possibility of turnover is around 25% which is higher than ICB.

May 06, 2010

Group-17; Sec-B

66

Comparing Job Satisfaction Level in Different Organizations

2010

Most interactions at work are positive


16% 12% 72% Yes No No Comment

Most interactions at work are positive


0% Yes 100% No No Comment

Interpretation: Here as employees are positive about the interactions at work, there is less possibility of deviant workplace behavior.

Interpretation: This is an outlier result. Here employees interaction at work is 100%. That means they are fully satisfied.

I am engaged in meaningful work


8% 13% Yes 79% No No Comment

I am engaged in meaningful work


0% Yes 100% No No Comment

Interpretation: As employees are engaged in meaningful work, they wont do any unethical task. But it is only employee perspective not the employer.

Interpretation: It is also 100%. It indicates employees are related to any deviant task. But after all it is answer given by employees.

May 06, 2010

Group-17; Sec-B

67

Comparing Job Satisfaction Level in Different Organizations

2010

I respect the work of my peers


13% 8% Yes 79% No No Comment

I respect the work of my peers


0% Yes 100% No No Comment

Interpretation: It indicates the positive attitude of an employee towards the others which will lead them to work cooperatively.

Interpretation: It indicates the positive attitude of an employee towards the others which will lead them to work cooperatively. As it is 100%, it is pure job satisfaction.

My coworkers are committed to doing quality work


24% 28% 48% Yes No No Comment

My coworkers are committed to doing quality work


0% Yes No 100% No Comment

Interpretation: As per the evaluation to other employees is positive, itll reflect and help the organization to go a long way.

Interpretation: As per the evaluation to other employees is positive, itll reflect and help the organization to go a long way. As it is 100%, it indicates the perfect loyalty of employee and combination of co-working among them.

May 06, 2010

Group-17; Sec-B

68

Comparing Job Satisfaction Level in Different Organizations

2010

I feel valued and affirmed at work


16% 12% 72% Yes No No Comment 16%

I feel valued and affirmed at work


4% Yes 80% No No Comment

Interpretation: When an employee feels that he or she is given value, he or she will try to do something extra beyond the normal task. Here as it is 72%, they are totally satisfied.

Interpretation: When an employee feels that he or she is given value, he or she will try to do something extra beyond the normal task. Here as it is 80%, (which is higher than ICB) they are totally satisfied.

I feel free to do the things the way I like at work


16% 40% 44% Yes No No Comment

I feel free to do the things the way I like at work


4% 32% 64% Yes No No Comment

Interpretation: It indicates employees freedom. As they are in this case not so freedom, it can lead them not to be proactive.

Interpretation: It indicates employees freedom. As they are in this case freedom, it can lead them to be proactive. Itll increase the productivity as well as development of the company.

May 06, 2010

Group-17; Sec-B

69

Comparing Job Satisfaction Level in Different Organizations

2010

My values fit the organizational values


12% Yes 56% No No Comment

My values fit the organizational values


16% 4% Yes 80% No No Comment

32%

Interpretation: It reflects positive feelings about an organization. Because when an employee thinks that he or she is given priority, he or she wants to do extra tasks.

Interpretation: It reflects positive feelings about an organization. Because when an employee thinks that he or she is given priority, he or she wants to do extra tasks. In IDLC it is higher than ICB.

Creativity and innovation are supported


16% Yes 28% 56% No No Comment

Creativity and innovation are supported


0% 8% Yes 92% No No Comment

Interpretation: As creativity is supported, itll help employees to perform better than the previous.

Interpretation: As creativity is supported, itll help employees to perform better than the previous. As here it is 92%, the employees must be proactive and contribute in the development of the firm.

May 06, 2010

Group-17; Sec-B

70

Comparing Job Satisfaction Level in Different Organizations

2010

I know what is expected of me at work

I know what is expected of me at work


8% 4%

4%

20% 76%

Yes No No Comment 88% Yes No No Comment

Interpretation: It creates better thinking of employees and helps employees to be more and more hard working.

Interpretation: It creates better thinking of employees and helps employees to be more and more hard working. As it is 88%, it is higher than ICB.

I have the opportunity to the what I do best everyday at my work


16% 48% 36% Yes No No Comment

I have the opportunity to the what I do best everyday at my work


12% 8% Yes 80% No No Comment

Interpretation: The positive value shows that employees know what to do and if they wish they can do more in order to get bonus.

Interpretation: The positive value shows that employees know what to do and if they wish they can do more in order to get bonus. Here as a private company the percentage (80%) is higher than public organization.

May 06, 2010

Group-17; Sec-B

71

Comparing Job Satisfaction Level in Different Organizations

2010

I know someone at work who encourages my development


16% 12% 72% Yes No No Comment

I know someone at work who encourages my development


16% 4% Yes 80% No No Comment

Interpretation: The positive percentage shows that employees get encouragement from other employees which create positive impact on the organization.

Interpretation: The positive percentage shows that employees get encouragement from other employees which create positive impact on the organization. Here it is 80%, higher than ICB.

Going beyond what is expected of me to make customers happy


0% 36% 9% 41% Yes, I always do so Yes, occasionally I work as much as is expected of me 4%

Going beyond what is expected of me to make customers happy


4% 12% 48% 32% Yes, occasionally I work as much as is expected of me Yes, I always do so

14%

Interpretation: This portion indicates the relationship of job satisfaction with customer satisfaction. As employees are satisfied, theyll try to ensure customer satisfaction.

Interpretation: This portion indicates the relationship of job satisfaction with customer satisfaction. As employees are satisfied, theyll try to ensure customer satisfaction. In this case IDLC is ahead of ICB.

May 06, 2010

Group-17; Sec-B

72

Comparing Job Satisfaction Level in Different Organizations

2010

I feel positive and up most of the time I am working


12% 12% Yes 76% No No Comment

I feel positive and up most of the time I am working


12% 3% Yes 85% No No Comment

Interpretation: If an employee feels positive, he or shell be satisfied. As here they are positive to work, theyre satisfied employee.

Interpretation: If an employee feels positive, he or shell be satisfied. As here they are positive to work (85%), theyre satisfied employee. Here IDLC is also ahead in the race.

I have the energy at the end of each work day to attend the people I care about
8% 12% Yes 80% No No Comment

I have the energy at the end of each work day to attend the people I care about
8% 28% 64% Yes No No Comment

Interpretation: Thinking about this sort of question obviously ensures job satisfaction. Here it is 80%.

Interpretation: Thinking about this sort of question obviously ensures job satisfaction. Here it is 64%. Though it is not as much of ICB, it is almost above 50% that is satisfactory.

May 06, 2010

Group-17; Sec-B

73

Comparing Job Satisfaction Level in Different Organizations

2010

I have the energy at the end of each work day to engage in personal interests
16% 12% 72% Yes No No Comment

I have the energy at the end of each work day to engage in personal interests
12% 32% 56% Yes No No Comment

Interpretation: When it is for personal interest, it is not directly related to job. But is it is around 20%, itll create negative impact. As it is 72%, it is very much good.

Interpretation: As it is private firm, here employees have to do extra work. Thats why it not possible for them to look for their personal interest. But after all, itll negative impact on satisfaction.

I have the time and energy in life to read books that interests me
12% 20% 68% Yes No No Comment

I have the time and energy in life to read books that interests me
12% 20% 68% Yes No No Comment

Interpretation: As it is positive, itll also ensure the satisfactory level in the job.

Interpretation: As it is positive, itll also ensure the satisfactory level in the job. It is equal to ICB.

May 06, 2010

Group-17; Sec-B

74

Comparing Job Satisfaction Level in Different Organizations

2010

I feel valued and affirmed at work


12% 16% 72% Yes No No Comment 16%

I feel valued and affirmed at work


4% Yes 80% No No Comment

Interpretation: Positive thinking about valuing someone makes him satisfied which has been occurred here.

Interpretation: Positive thinking about valuing someone makes him satisfied which has been occurred here. Here the percentage is higher than ICB.

I feel recognized and appreciated at work


13% 9%

I feel recognized and appreciated at work


16% 4% Yes 80% No No Comment

Yes 78% No No Comment

Interpretation: As the employees are appreciated at work itll ensure their satisfaction level to the full extent.

Interpretation: As the employees are appreciated at work itll ensure their satisfaction level to the full extent. Now the comparison goes in side of IDLC.

May 06, 2010

Group-17; Sec-B

75

Comparing Job Satisfaction Level in Different Organizations

2010

I trust our leadership team


12% 20% 68% Yes No No Comment

I trust our leadership team


4% 4% Yes 92% No No Comment

Interpretation: When an employee is satisfied, he or shell trust his or her leadership team which has occurred here and it is 68%.

Interpretation: When an employee is satisfied, he or shell trust his or her leadership team which has occurred here and it is 92% which is higher than ICB.

I feel informed about whats going on


12% 28% Yes 60% No No Comment

I feel informed about whats going on


8% 20% 72% Yes No No Comment

Interpretation: It indicates highest level of satisfaction. When someone is informed about everything he or she treats himself or herself as an important person.

Interpretation: It indicates highest level of satisfaction. When someone is informed about everything he or she treats himself or herself as an important person. Here the percentage is almost higher than ICB which is 72%.

May 06, 2010

Group-17; Sec-B

76

Comparing Job Satisfaction Level in Different Organizations

2010

My managers cares about me as a person


8% 12% Yes 80% No No Comment

My managers cares about me as a person


16% 4% Yes 80% No No Comment

Interpretation: When a manager treats someone as a person, itll ensure job satisfaction.

Interpretation: When a manager treats someone as a person, itll ensure job satisfaction. Here the result is almost the same.

I am fairly compensated

I am fairly compensated

20% 40%

40%

Yes No No Comment 12%

24% 64%

Yes No No Comment

Interpretation: It is the main component of job satisfaction. When an employee is fairly compensated, he or shell be satisfied, but here the result is contradictory because the employees are not fairly compensated.

Interpretation: It is the main component of job satisfaction. When an employee is fairly compensated, he or shell be satisfied, here the result is absolutely perfect. Because the percentage is 64% really higher than ICB.

May 06, 2010

Group-17; Sec-B

77

Comparing Job Satisfaction Level in Different Organizations

2010

FINDINDS

May 06, 2010

Group-17; Sec-B

78

Comparing Job Satisfaction Level in Different Organizations

2010

FINDINGS
Based on our survey and analysis, we can come to a conclusion that private organizations are much better than public organizations. Though in private organizations employees have to perform more and their promotion depends on their performance not on their age, the salary or remuneration that they get is absolutely higher than public. Moreover, in public organizations there is not so much competition which is availing in private firms. So, based on our all analysis the findings that we get are summed up as follows:

Public Organization are flexible but not a perfect place for competition. In private organizations in spite of challege there is reward for getting high remuneration. In Public Organizations there is less possibility of loosing the job. In this case job satisfaction is ensured. In private organization job satisfaction rate is comparatively higher than public because of the remuneration. In case of deviant workplace behavior public organization shows the negative behaviors. Privete organizations are a perfect place for creating organizational citizenship behavior. In ensuring overall job satisfaction according to its definition priate organization is the best.

Turnover and absenteeism rate is lower in both organizations but private is here preferable because of promotion possibility.

May 06, 2010

Group-17; Sec-B

79

Comparing Job Satisfaction Level in Different Organizations

2010

SUMMARY & CONCLUSION

May 06, 2010

Group-17; Sec-B

80

Comparing Job Satisfaction Level in Different Organizations

2010

SUMMARY/ GIST OF THE REPORT


In the light of the above discussion, the gist of presentation can be presented as follows:

Job Satisfaction depends on five variables such as Productivity, Absenteeism, Turnover, DWPB and OCB.

If in an organization employees are satisfied they'll ensure productivity and want to be proactive.

Job Satisfaction

Based on our survey both public and private organizations are capable of ensuring job satisfaction but private firm is preferable

After ensuring job satisfaction an organization can go its peak in order to achieve its ultimate goal.

May 06, 2010

Group-17; Sec-B

81

Comparing Job Satisfaction Level in Different Organizations

2010

CONCLUSION
At the last stage we can say that organizational behavior is a study to evaluate human nature and behavior in order to control their behavior. On the other hand, Job satisfaction is a positive feelings about ones attitudes based on some observations. Job satisfaction is a part of organizational behavior. It is related with five variables. When an employee is satisfied, he will do some activities such as: Ensure productivity. Reduce the absence rate. Try to stay in the organization. Reduce the turnover rate and want to make it zero. Eliminate deviant behavior which is negative to the organization. Increase performance. Want to be proactive. Try to do some innovative work. Perform very tough tasks quickly. Now our task is to make relationship between job satisfaction and other variables. For this task we have completed surveys and based on our survey we see that employee job satisfaction is a critical matter. It cant be ensured easily. If some matters go positive to them, some others go negative. All of the variables must not be performed perfectly in order to achieve the target. If the majority variables are on the positive of the employees itll be beneficial to the firm. If an employee is satisfied and become loyal to the organization hell try to d everything for the betterment of the firm and as a result it improves the performance and efficiency level of the organization. At last, employee needs to be in the firm. Thats why they have to do all the possible things to be remaining in the firm. On the other hand, organizations should be careful to capture their potential employees by motivating them. The successful motivation is job satisfaction. If an employee is fully satisfied he wont go anywhere and want to perform all the beneficial activities which will increase the value of the firm in the long run.

May 06, 2010

Group-17; Sec-B

82

Comparing Job Satisfaction Level in Different Organizations

2010

BIBLIOGRAPHY & APPENDIX

May 06, 2010

Group-17; Sec-B

83

Comparing Job Satisfaction Level in Different Organizations

2010

BIBLIOGRAPHY
Persons:
1. Nusrat Khan Madam Lecturer Dept. of Finance University of Dhaka 2. Prof. Md. Khairul hasan Sir Professor Dept. of Finance University of Dhaka

Books:
1. Organizational Behavior by Robbins 2. Organizational Behavior by Weihrich & Koontz

Websites:
1. www.idlc.com 2. www.wikipedia.com 3. www.icb.com 4. www.prenhall.com/robbins 5. www.mgtcorrelation.com

May 06, 2010

Group-17; Sec-B

84

Comparing Job Satisfaction Level in Different Organizations

2010

Appendix:
Respondent Code

QUESTIONNAIRE
A Sample Survey on

EMPLOYEE JOB SATISFACTION in BANGLADESH


GENERAL INFORMATION
Respondent Name: Designation: Promotions Obtained so far: Years with the company: Years in the current position:

SECTION 1: PRODUCTIVITY
1. I am aligned with the organizations mission 2. I feel involved in decisions that affect our organizational community 3. I have the materials and equipment that I need in order to do my work 4. My managers review my progress Yes Yes Yes Yes No No No No

5. Productive time spent working on the tasks assigned to me [please tick () the exact box] Almost all of the time Most of the time Half of the time 1/4th of the time less than 1/4th of the time 6. I meet the target quotas and goals - [please tick () the exact box] Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree N/A
May 06, 2010 Group-17; Sec-B

85

Comparing Job Satisfaction Level in Different Organizations

2010

7. Overall productivity in getting the job done - [please tick () the exact box] Excellent Good Average Below average Poor N/A 8. I respond quickly and courteously to fulfill customers' needs - [please tick () the exact box] Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree N/A 9. What is it that helps you to be productive and provide quality service? [please mention the prime factors] 1. 2. 3. 4. 5. 6. 7. 8.

SECTION 2: ABSENTEEISM
1. I look forward to going to work on SUNDAY morning 2. Most of the time Im absent because [please tick () the exact box] Yes No

Unsafe Working Conditions Excessive Rework Travel Distance Poor Craft Supervision Poor Overall Management Personal Family Illness

SECTION 3: TURNOVER
1. There are more positive than negative aspects to my job - [please tick () the exact box] Strongly Disagree Disagree Neutral Agree Strongly Agree

May 06, 2010

Group-17; Sec-B

86

Comparing Job Satisfaction Level in Different Organizations

2010

2. What are your reasons for joining [COMPANY_NAME]? (Check all that apply) Referred by a friend Fringe benefits Reputation as a good place to work Career advancement Advertisement Salary advancement Was Unemployed and needed a job Others (Please Specify) 3. What could be the possible reasons for leaving the [COMPANY_NAME]? (Check all that apply) Higher Pay Benefits Better job opportunity Commute Conflict with other employees Conflict with managers Family and personal reasons Relocation/Move Career Change Company Instability Others (Please Specify) 4. Have you changed jobs in the last 12 months? [please tick () the exact box] No Once 2 times 3 times or more 4 times or more No answer

SECTION 4: DEVIANT WORKPLACE BEHAVIOR


[Please tick () over the YES/NO Options provided] 1. Most interactions at work are positive 2. I am engaged in meaningful work 3. I respect the work of my peers 4. My coworkers are committed to doing quality work Yes/No Yes/No Yes/No Yes/No

SECTION 5: ORGANIZATIONAL CITIZENSHIP BEHAVIOR


[Please tick () over the YES/NO Options provided]

May 06, 2010

Group-17; Sec-B

87

Comparing Job Satisfaction Level in Different Organizations


1. I feel valued and affirmed at work 2. I feel free to do the things the way I like at work 3. My values fit the organizational values 4. Creativity and innovation are supported 5. I know what is expected of me at work 6. I have the opportunity to the what I do best everyday at my work 7. I know someone at work who encourages my development

2010
Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No

8. Going beyond what is expected of me to make customers happy [please tick () the exact box] Yes, I always do so Yes, occasionally I work as much as is expected of me I work less than what is expected of me N/A

SECTION 6: JOB SATISFACTION


[Please tick () over the YES/NO Options provided] 1. I feel positive and up most of the time I am working Yes/No

2. I have the energy at the end of each work day to attend the people I care about - Yes/No 3. I have the energy at the end of each work day to engage in personal interests Yes/No 4. I have the time and energy in life to read books that interests me 5. I have good friends at work 6. I feel valued and affirmed at work 7. I feel recognized and appreciated at work 8. Work is a real plus in my life 9. I feel free to be who I am at work 10. I trust our leadership team 11. I have opportunities to learn what I want to learn 12. I feel informed about whats going on 13. I have the opportunity to the what I do best everyday at my work 14. My managers cares about me as a person 15. I am fairly compensated Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No

May 06, 2010

Group-17; Sec-B

88