HRM in Bangladesh

8/18/2019 HRM in Bangladesh

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Fast global and technological developments have made today’s business environment highly

uncertain and even chaotic. Organizations are seeking newer ways to promote their adaptability

to the complexities of the changed scenario so as to survive and prosper. Globally, organizationsare striving to realize competitive success through strategic management of human resources.

hus, people management has never been more important than it is today. herefore new themeshave emerged in the process, replacing some of the old ones. he new thinking in this regard is

referred to as !uman "esource #anagement $!"#%, which carries a more proactive andstrategic connotation. !"# is intimately intertwined with business strategy. &n many situations,

it even critically influences business strategy.

he development of employee commitment through employee involvement and empowerment isone of the key ob'ectives of any !"# discourse. he complex business ob'ectives in today’s

business environment are difficult to realize without developing highly committed and motivated

employees who would strive to contribute to organizational goals. hat is why, human resource

issues are no more the exclusive preserve of personnel specialists( rather line and general

managers are being increasingly involved in handling key !" issues and in evolving, shapingand managing human resource strategies and policies. hese developments have given a far

greater recognition to the !" function in organizational decision)making processes.

Objectives of Study:

*very task has a particular aim. + study without ob'ective cannot reach its destination. he main

ob'ectives of this study are to find out the overall !"# process of various banks of angladesh.

he ob'ectives of the study conducted in the banks are mentioned as under-

• o know overall !"# process of the bank

• o acuire practical knowledge on !"# practice

• o know the functions of various departments of !"#

• o learns about bank’s employment planning

• o be familiar with the recruitment and selection process

• o learn about the employee benefits

• #aking a precise picture of the present situation of employment procedure in

angladesh.

Scope of the study:

“HRM practice in the banks of Bangladesh”


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First of all it will help the researcher to get a clear idea of the !" department and its working

procedures as well as its key roles in a company.

/econdly, !uman "esource is an emerging concept in angladesh and organizations such as aank put much more emphasis on this department so this study will help the organization as

well. &n this regard, this research will help to increase organization’s performance in a way theemployee of the organization will think.

0ast of all, it will encourage further study in this area and will provide useful guidelines for thistype of research.

i!itation of the study:

he main limitation of the study is lack of information provided by the organization. 1ational

ank 0imited was very cooperative with us in making this assignment but due to its company

rule and insecurity in the market caused this obstacle that we could not overcome. Other

limitations of this study are-

• 0ess analytical power, 1on)cooperative behaviors of some officials of the bank,

• here were a few uestions which were tactfully avoided or not exactly answered by the

respondents,

• 0arge scale research was not possible due to constraints and restrictions posed by the

organization

Research design:

"esearch design is a vital part of the research. here are different types of data collection

methods. +mong them this research is conducted on the basis of both survey and secondary data

analysis. o collect all the primary data survey method has been used. o collect the secondarydata secondary data analysis method has been used. &n survey method, all 2rimary 3ata was the

4ualitative 3ata and was collected by asking uestions through interview and formal and

informal discussion. 1o uestionnaire was used for this purpose.

"ata collection:

wo types of data were collected, both primary and secondary.

#$ %ri!ary data collection:

+ll the reuired primary data were collected through direct interview and also through informal

discussion. 2rimary data are collected through- Open ended and close ended uestions

5onducting interview of the staffs of the branch

&$ Secondary data collection:


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/econdary data are collected from, +nnual report 5ompany’s previous

report 5ompany’s other published information

"ata analysis:

here is no certain analyzing tool to analyze the data of a descriptive

research. his study is mainly explaining the !" activities in banks.

'ndustry Overvie( of the study

Banking industry in Bangladesh:

he anking &ndustry in angladesh is one characterized by strict regulations and monitoring

from the central governing body, the angladesh ank. he chief concern is that currently there

are far too many banks for the market to sustain. +s a result, the market will only accommodateonly those banks that can transpire as the most competitive and profitable ones in the future.

5urrently, the ma'or financial institutions under the banking system include-

6. angladesh ank

7. 5ommercial anks

8. &slamic anks

9. 0easing 5ompanies

:. Finance 5ompanies

Of these, there are four nationalized commercial banks $15%, : specialized banks, 66 foreign

banks, 7; domestic private banks and 9 &slamic anks currently operating in angladesh.For

analyzing the human resource management process we have chosen 8 banks which are)

6% angladesh bank < the central bank of angladesh

7% 5ommercial bank of 5eylon < foreign commercial bank

8% 1ational bank ltd < private commercial bank

Hu!an Resource Manage!ent:

!uman resource is a term used to describe the individuals who comprise the workforce of an

organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. !uman resources is also the name of the function within an organization

charged with the overall responsibility for implementing strategies and policies relating to the


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management of individuals $i.e. the human resources%. his function title is often abbreviated to

the initials =!"’.

Hu!an resources purpose and role:

&n simple terms, an organization’s human resource management strategy should maximize returnon investment in the organization’s

human capital and minimize financial risk. !uman "esources seeks to achieve this by aligning

the supply of skilled and ualified individuals and the capabilities of the current workforce, with

the organization’s ongoing and future business plans and reuirements to maximize return oninvestment and secure future survival and success. &n ensuring such ob'ectives are achieved, the

human resource function purpose in this context is to implement the organization’s human

resource reuirements effectively but also pragmatically, taking account of legal, ethical and asfar as is practical in a manner that retains the support and respect of the workforce.

)ey functions:

!uman "esources may set strategies and develop policies, standards, systems, and processes that

implement these strategies in a whole range of areas. he following are typical of a wide rangeof organizations-

• "ecruitment, selection, and on boarding $researching%

• Organizational design and development

• usiness transformation and change management

• 2erformance, conduct and behavior management

• &ndustrial and employee relations

• !uman resources $workforce% analysis and workforce personnel data management

• 5ompensation, rewards, and benefits management

• >. raining and development $learning management%

• ?. &mplementation of such policies, processes or standards may be directly managed by

the !" function itself, or the function may indirectly

• 6@. /upervise the implementation of such activities by managers, other business functions

or via third)party external partner organizations.

*o!pensation Manage!ent:


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5ompensation #anagement is an integral part of the management of he organization.

5ompensation is a systematic approach to providing monetary value to employees in exchange

for work performed. &t may achieve several purposes assisting in recruitment, 'ob performance,and 'ob satisfaction. &t is the remuneration received by an employee in return for hisAher

contribution to the organization. &t is an organized practice that involves balancing the work)

employee relation by providing monetary and non)monetary benefits to employees. &t is a toolused by management for a variety of purposes to further the existence and growth of the

company. &t may be attuned according to economic scenario, the business needs, goals, and

available resources. 5ompensation #anagement contributes to the overall success of theorganization in several ways. o be effective, the managers must appreciate the value of

competitive pay, their human resources, and have an investment view of payroll costs. Be want

to maintain pay levels that attract and retain uality employees while recognizing the need to

manage payroll costs.

he increasing competitiveness of the labour market and turnover of employees had resulted in

nightmare in compensation planning. +part from this, the growing demands of the employees

and competitive salaries offered by multinational companies had almost resulted in acompensation war in certain industries. herefore, the human resources managers and tax experts

have to evolve proper compensation planning for !igh end and ualified employees. he

components of compensation have to be devised in such a way that, it focuses on the growing

demands of employees while retaining the competitiveness and profitability of the company.

5ompensation management, also known as wage and salary administration, remuneration

management, or reward management, is concerned with designing and implementing total

compensation package. he traditional concept of wage and salary administration emphasised on

only determination of wage and salary structures in organisational settings. 2ay is a difficulttopic of conversation in most organizations. &n fact, the topic is altogether taboo in many

workplaces. &t simply isn’t discussed unless absolutely necessary. +nd, when it is necessary, suchas when a pay raise $or lack of one% must be explained to an employee, many managers findthemselves at a loss for words. +s the dreaded date of such a discussion approaches, managers

may begin checking their sick time banks to see if they can disappear for a day or two.

Bhile it may be a touchy sub'ect, pay is a critical factor in the work lives of employees. Cobs are

accepted or re'ected based in part on starting salary and the opportunity for future increases in pay. *mployees compare their pay to that of others in the same line of work. hey constantly

compare their pay level to their level of contribution, trying to determine whether the ratio of

give and receive is a fair one. Bhile it may not be a freuent topic of open discussion, employeesthink about pay often.

*o!ponents of co!pensation:

Basic (ages+Salaries:,

hese refer to the cash component of the wage structure based on which other elements of

compensation may be structured. &t is normally a fixed amount which is sub'ect to changes basedon annual increments or sub'ect to periodical pay hikes. Bages represent hourly rates of pay, and


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salary refers to the monthly rate of pay, irrespective of the number of hours put in by the

employee. Bages and salaries are sub'ect to the annual increments. hey differ from employee to

employee, and depend upon the nature of 'ob, seniority, and merit.

"earness allo(ance:,

he payment of dearness allowance facilitates employees and workers to face the price increase

or inflation of prices of goods and services consumed by him. he onslaught of price increase

has a ma'or bearing on the living conditions of the labour. he increasing prices reduce thecompensation to nothing and the money’s worth is coming down based on the level of inflation.

he payment of dearness allowance, which may be a fixed percentage on the basic wage, enables

the employees to face the increasing prices.

'ncentives:,

&ncentives are paid in addition to wages and salaries and are also called =payments by results’.

&ncentives depend upon productivity, sales, profit, or cost reduction efforts. here are- Da%&ndividual incentive schemes, and $b% Group incentive programmes. &ndividual incentives are

applicable to specific employee performance. Bhere a given task demands group efforts for completion, incentives are paid

to the group as a whole. he amount is later divided among group members on an euitable

basis.

Bonus:,

he bonus can be paid in different ways. &t can be fixed percentage on the basic wage paid

annually or in proportion to the profitability. he Government also prescribes a minimumstatutory bonus for all employees and workers. here is also a bonus plan which compensates the

#anagers and employees based on the sales revenue or 2rofit margin achieved. onus plans canalso be based on piece wages but depends upon the productivity of labour.

-on,!onetary benefits:,

hese benefits give psychological satisfaction to employees even when financial benefit is not

available. /uch benefits are- $a% "ecognition of merit through certificate, etc. $b% Offering

challenging 'ob responsibilities, $c% 2romoting growth prospects, $d% 5omfortable workingconditions, Ee% 5ompetent supervision, and $f% Cob sharing and flexi)time.

*o!!issions:,

5ommission to #anagers and employees may be based on the sales revenue or profits of the

company. &t is always a fixed percentage on the target achieved. For taxation purposes,commission is again a taxable component of compensation. he payment of commission as a

component of commission is practised heavily on target based sales. 3epending upon the targets

achieved, companies may pay a commission on a monthly or periodical basis.


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Mi.ed plans:,

5ompanies may also pay employees and others a combination of pay as well as commissions.

his plan is called combination or mixed plan. +part from the salaries paid, the employees may be eligible for a fixed percentage of commission upon achievement of fixed target of sales or

profits or 2erformance ob'ectives. 1owadays, most of the corporate sector is following this practice. his is also termed as variable component of compensation.

%iece rate (ages:,

2iece rate wages are prevalent in the manufacturing wages. he laborers are paid wages for eachof the 4uantity produced by them. he gross earnings of the labour would be euivalent to

number of goods produced by them. 2iece rate wages improves productivity and is an absolute

measurement of productivity to wage structure. he fairness of compensation is totally based onthe productivity and not by other ualitative factors.

/ringe benefits:,

Fringe benefits may be defined as wide range of benefits and services that employees receive as

an integral part of their total compensation package. hey are based on critical 'ob factors and performance. Fringe benefits constitute indirect compensation as they are usually extended as a

condition of employment and not directly related to performance of concerned employee. Fringe

benefits are supplements to regular wages received by the workers at a cost of employers. hey

include benefits such as paid vacation, pension, health and insurance plans, etc. /uch benefits arecomputable in terms of money and the amount of benefit is generally not predetermined. he

purpose of fringe benefits is to retain efficient and capable people in the organisation over a long

period. hey foster loyalty and acts as a security base for the employees.

%rofit Sharing: 0

2rofit)sharing is regarded as a steppingstone to industrial democracy. 2rofit)sharing is an

agreement by which employees receive a share, fixed in advance of the profits. 2rofit)sharing

usually involves the determination of an organisation’s profit at the end of the fiscal year and thedistribution of a percentage of the profits to the workers ualified to share in the earnings. he

percentage to be shared by the workers is often predetermined at the beginning of the work

period and &/ often communicated to the workers so that they have some knowledge of their

potential gains. o enable the workers to participate in profit)sharing, they are reuired to work for certain number of years and develop some seniority. he theory behind profit)sharing is that

management feds its workers will fiilfill their responsibilities more diligently if they realise thattheir efforts may result in higher profits, which will be returned to the workers through profit)sharing.

1pproaches of co!pensation !anage!ent

here are 82 approach of developing a compensation policy centered on the fundamentals of

paying for 2osition, 2erson and 2erformance. 3rawing from external market information and


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internal policies, this program helps establish guidelines for an euitable grading structure,

determine capability reuirements and creation of short and long)term incentive plans. he 82

approach to compensation management supports a company’s strategy, mission and ob'ectives. &tis highly proactive and fully integrated into a company’s management practices and business

strategy. he 82 system ensures that human resources management plays a central role in

management decision making and the achievement of business goals.

6 . 2aying for position

7. 2aying for person

8. 2aying for performance

ecause it is so important to employees, the issue of pay deserves to be dearly addressed. &n spite

of their hesitanee, managers are capable of dealing with this sometimes difficult issue in a

professional and effective manner. y keeping the following basic points about pay in mind, they

can address virtually any pay)related topic with their employees in a professional and productivemanner.

Specificity is )ey

2ay is a topic with many different shades and a variety of implications. Bhenever approachingthe sub'ect, it is important to work out the details beforehand so that specifics can be clearly

communicated. For the manager, this means that the increase amount is nailed down before

discussing a promotion with an employee. 1o chance of misunderstanding or false expectationscan be permitted. Far too often, managers are apt to discuss generalities. &t will mean a good

increase. Bhat exactly does that mean in terms of the employee’s monthly budgetH &f care is not

taken here, good news can become the source of conflict and resentment.

y the same token, if asked for a raise, the manager should reuest that the employee suggest aspecific number that he believes reflects his value. Once the employee provides that number, the

manager can do his homework and decide what, if anything can be done. he employee can then

be given a definitive response.

%ay is Relative

Bhat one employee considers a fantastic increase maybe an insult to anotherH *ach individualhas a uniue set of creativity and competencies. 2ay should be based on the performance,

position and the competenciesAskills the person is having.

%ay is -ot *reated 23ual

Iarious forms of pay have different purposes. he two most common forms of direct cashcompensation in most companies are base pay and bonus. ase pay is the annual salary or hourly

wage paid to an employee given the 'ob he holds, Bhile bonus is typically $or at least should be%

rewarded based on the achievement of a goal of the organization. 3iscussions about bonus


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payments should be as specific as possible. his is the opportunity to point out particular

accomplishments that contributed to overall team or company success. *ven if the bonus is paid

to all employees based on a simple overall company profit target, the manager should use theopportunity to point out specifically how individual employees helped achieve that target.

3istributing bonus checks presents a uniue motivational opportunity for a manager. !andingmoney to an employee while discussing actions and behaviors he would like to see repeated,

creates a powerful link between performance and reward. 3iscussions about base pay increasescan be a bit different. #ost companies claim to link their annual base pay increases to

performance. &n reality, however, base pay decisions take into account a variety of factors,

including the relative pay of others in the same 'ob, the company’s increase budget, market practices and where the individual falls within his pay range.

*ven when performance is a factor, the manager is faced with the difficult task of evaluating an

entire year’s worth of activity and then categorizing it according to the percentage increase

options allowed by the budget. &t becomes very difficult to pinpoint specific employee actions or

accomplishments as the reason for the increase.

For these reasons, it’s appropriate for the discussion about base pay increases to be more general

and balanced. oth strengths and weaknesses of the employee should be addressed. he actual

increase is then based on an overall assessment, as opposed to a link with one or two specificoutcomes. +ny other factors that impact the increase percent, such as budget or pay range should

be openly discussed as well.

"evelop!ent of a *o!pensation %hilosophy

+ll organizations pay according to some underlying philosophy about 'obs and the people who

do them. his philosophy may not be in writing, but it certainly exists. 2ay maybe treated in aformal and structured manner at one company. +t another, any appearance of structure is

intentionally avoided so that decisions can be made arbitrarily. *ither way, the approach takenreflects a fundamental belief about people, motivation and management. efore an organization

actually develops a compensation plan, there are several uestions that need to be answered.

aking the time to consider and answer these uestions will make the both the process of

developing and administering a compensation plan much easier and will result in thedevelopment of a compensation plan that more closely matches the organization’s goals and

ob'ectives. #anagers often want to view each individual as a separate ease. &t is important to

understand, however, that employees operate within a compensation system. + manager is wiseto take the time to learn as much as possible about his company’s compensation system.

Bhat is the goal of the organization’s compensation systemH &n addition to attracting and

retaining ualified employees, is there an intent to reward employees for good performance,

motivate good performance, andAor create or reinforce a particular type of organizationalclimateH

Bhat is the communication policyH !ow is the organization going to communicate the

compensation plan to employees once it has been developedH &s the organization prepared to


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evaluate the effectiveness of any such communicationH &f so, howH !ow will decisions regarding

pay be madeH Bho will be involved in these decisionsH Bhat decision guidelines will need to be

developedH

Bhat is the organization’s desired market position relative to payH Bill the organization choose

to pay market rates, above market or below marketH !ow does the desired market position fitwith other strategic goalsH +re there any competitive factors involved mat will determine the pay

strategyH

Bhat is the desired mix between benefits and cashH /ince benefits are an important form of

compensation, how does an organization use them to maximize the effectiveness of the

compensation planH

Bhat does the organization pay forH 3oes it pay for performance or seniority or somecombination of the twoH

Bhat is the role of performance appraisal in the organizationH !ow important is performanceappraisal and whyH

!ow will the organization manage change to the compensation plan once it has been developedHBhat systems need to be in place to implement any changes including deciding when change is

necessary and who will make these decisionsH

!ow does the compensation philosophy and plan fit with the rest of the organizationH !ow can

the compensation practices reinforce other overall management philosophies and ob'ectivesH

Bhile the answer to how muchH is of course important to employees, they are also concerned

about the whyH of pay. &n other words, while the actual amount of pay is very important,employees also are interested in the rationale used to determine it. "esearch has shown that pay

satisfaction increases with understanding of the pay scheme. #anagers often leave this area tothe !" department. &deally, however, managers themselves will be the primary conduit of

information on this topic. &f a manager does not know the company’s pay philosophy, he should

seek out whomever in the organization is responsible for pay administration and get the answershe needs. Cob seekers who go into the negotiation process with their eyes wide open keep an

important fact in mind- + few thousand dollars one way or the other can uickly become a gain

or a loss depending on other benefits. #oney is important, but it must be put in the context of

other pros and cons)some of which have a dollar value and some of which do not. #anagersshould be the company’s biggest ambassadors when it comes to the value of benefits and work

environment factors. /harp companies do a good 'ob of showing the value of these hems. /martmanagers will communicate their value, as well, especially when discussing pay. For example,when offering a promotion to an employee, a manager should consider all the potential benefits.

Bhat developmental opportunities are involvedH &s there an increase hi statusH Bill the move

mean additional interaction with key playersH +ll of these, as well as any increase in tangible payand benefits should be discussed.

/peaking of 2ay with 5onfidence


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3iscussions regarding pay do not have to be awkward)they can be clear and productive if

managers adhere to the basics outlined above. "ather than a taboo, pay can be addressed in an

up)front manner if managers do their homework, get prepared and go into the discussion with theconfidence that comes from knowledge. 2ay discussions should deal with specifics. &n preparing

for the discussion, the manager must remember that pay is relative and nothing can be assumed

about the employee’s response. he purpose of the particular aspect of pay being addressed isimportant, and the manager must be able to discuss the issue in the context of the organization’s

pay philosophy.

5ompensation is a hot potato for the !uman "esource 3epartment. he motivation level of the

employees to great extent lies in monetary rewards. &n the current state of affairs it isindispensable to restructure the pay models. /imilar to changes bought about in the other

departments the !" should also emphasize on restructuring the costs so as to bring the variable

cost close to zilch. /maller pro'ects with fast paybacks would be more attractive than a big pro'ect with a long payback. he challenge for service providers and consultants would be to

deliver the same amount of value to people with a smaller problem set. + satisfied employee is a

productive employee and care should be taken that they are fairly paid for their worth in theorganization. &f managers follow these guidelines, their pay)related communication with

employees will result in clarity and respect. &n addition, they will avoid the misunderstand and

resentment that results from avoiding this critical issue. &f paid well can generate results for the

organization, failed can create problems. he ma'or challenges what manager’s face today isretention of the man power and the ma'or cause of it is that they are paid better in the other

organizations.

/unctional overvie( and strategy for HRM:

hese issues motivate a well thought out human resource management strategy, with the

precision and detail of say a marketing strategy.

Failure in not having a carefully crafted human resources management strategy, can and probably

will lead to failures in the business process itself.

his set of resources is offered to promote thought, stimulate discussion, diagnose the

organizational environment and develop a sound human resource management strategy for your organization. Be begin by looking at the seven distinguishable function human resource

management provide to secure the achievement of the ob'ective defined above.

Following on from this overview we look at defining a human resource strategy.

Finally, some uestions are posed in the form of a !"# systems diagnostic checklist for you toconsider, which may prove helpful for you to think about when planning your development

programs for the human resources in your organization, if they are truly your most valuable

asset.

HRM in the banks of Bangladesh:


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!"# 2ractices in angladesh anking &ndustry is the potential industry where the growth of a

country depends a lot. &n angladesh banking industry is also very influential. his industry is

very big in angladesh and holds a lot of skilled employees. /o !uman "esource #anagement$!"#% is very much applicable as well as practiced in the banks of angladesh.

Building up efficiency in Banks (ith the help of HRM:

he crucial factors behind successful banking will be continuous and sustained build up of skills,

knowledge, education and attitudes among people working in the banks, particularly the frontline staff, working in the branches.

&t is possible through professionalization, which is an internal part of !"#. ank staff should be

motivated and encouraged to practice professionalism for their personal growth and thus

contribute to the organization’s growth.

uilding efficiency in banking is, therefore largely dependent on the best selection process

adopted by the !" department. here is imperative need to build up skills within an organizationfor the successful managing of available !".

anks have vast human resource specialized in multiple disciplines like technology, law,operations, foreign exchange, administration etc. the basic function of !" is to manage them

efficiently for continuous success.

Major 1ctivities of %ersonnel or Hu!an Resource "epart!ent:

• #anpower planning $determine and uantify future manpower reuirements, linked to

organization ob'ectives, reuires both external and internal information for planning, for

short and long term view%

• "ecruitment, selection, interviewing

• &nduction $new employees with information to function effectively in the organization%

• raining $maintaining and improving current 'ob performance%

• "e)training and counseling

• *ducation and development $develop skills for future 'obs%

• &ndustrial relations

• "emuneration and incentive

• 2ension and superannuation schemes


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• !ealth, safety, welfare

• Gathering /tatistical data both for internal and external use.

• Cob evaluation $assessment of the 'ob to set proper salary, review grade structure ,etc,.%

HRM !odel

HRM %rocess of Bangladesh Bank

2stablish!ent:

angladesh ank, the central bank as well as chief authority to regulate country’s monetary andfinancial system, was established in 3haka as a body corporate vied the angladesh ank Order,6?J7 $2.O. 1o. 67J of 6?J7% with effect from &;th 3ecember, 1971. angladesh ank started

functioning with all capital and liabilities of the then 3haka branch of /tate ank of 2akistan. +t

present it has got ? branches and those are located at #oti'heel, Khulna, /adarghat, ogra,

5hittagong, /ylhet, arisal, "angpur and "a'shahi in angladesh and total number of staffsstood at J79@ as on end 3ecember 7@@?.

*ore /unctions

as the central bank of angladesh executes all the functions that a central bank traditionally

performs as elsewhere in the world. he core functions of are briefly discussed as follows-

6. formulates and implements monetary policy aiming at stabilizing domestic monetary valueand maintaining competitive external per value oft aka for fostering growth and development of

countryr s productive resources in the best national interest.

7. formulates and implements intervention policies in the domestic money market andforeign exchange market. intervenes the money market with some policy instruments such as


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i. Open market operation $treasury billsAbonds, redo, reverse repo auctions%

ii. Iariations in reserve ratios such as cash reserve reuirements

$5""% and statutory liuidity ratio $/0"%

iii. /econdary trading

iv. 3iscounting rateA bank rate and

v. #oral suasion

8. monitors and supervises scheduled banks and non)bank financial instructions $1F&s%

that include off)site supervision and on)site supervision in order to enhance the safety,

soundness, and stability of the banking system to ensure banking discipline, protect depositors’interest and retain confidence in the banking system.

9. holds sole responsibility of the management of international reserve representing

aggregate of ’s holding of gold, foreign exchange /3" and reserve position in

the F(

:. , as the central bank of angladesh reserves sole responsibility to issue bank note

;. performs as a clearing house for the scheduled banks to clear and settle inter)bank

payment arising through drawing cheue, drafts, bills, etc to one another.

J. acts as a banker to the government(

>. functions as a lender of the last resort for the government as well as for the country’s

scheduled banks(

?. acts as an advisor to the government(

6@. directs the growth expediting programs for the national interest.

+dditionally, ’s functions include some other promotional activities such as development of

new instruments, guidelines for money and financial market participants, providing training to

the banks and 1F&s, monitoring and encouraging corporate social responsibilities $5/"%

executed by banks and 1F&s and so on. !"# process of angladesh ank.

/unctions:

!uman "esources 3epartment $!"3% manages centrally the manpower of the bank at work

places through resourcing, placement, training, performance, discipline etc. &t emphasizes onstrategic and value added !uman "esources $!"% activities involving the designing, updating

and amending !" polices and procedures for continuous improvement.


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o execute the above mentioned issues < !"Ls functions are accomplished under the following

divisions-

• 2lanning and "esourcing 3ivision.

• 3evelopment and enefit 3ivision.

• 2erformance and "eward 3ivision.

%lanning and Resourcing "ivision:

%lanning4 %ro!otion and 5ransfer 6ing:

his wing is responsible for develop +nnual #anpower 2lan for angladesh ank, conduct Cob

+nalysis, prepare Cob 3escriptions, formulate promotion and transfer 2olicy. &t works for

creationAretrenchment of posts, promotion, rotation to ensure placement of right persons at right

places and carry out the study of opening new officeAdepartmentAdivisionAcellAunit and abolitionthere of. "eviews cases of interdepartmental transfers as per 2olicies and approvals. his wing is

also responsible for secondment and deportation of staff to other national and international

institutions.

Recruit!ent and Outsourcing 6ing:

his wing is responsible for attracting, selecting M recruiting the right people and other

professionals from the market for angladesh ank, /tate owned anks and Financial

&nstitutions through a rigorous induction process in order to ensure presence of uality professionals. angladesh ank is proud of its highly professional, transparent ob'ective

approach in its recruitment and selection process. + series of selection procedures are applied before hiring employees. 1ormally the candidates go through the process of written test andinterview. he interview is conducted by team comprising of internal as well as external

2rofessional of the relevant area.

angladesh bank appoints the employees from 7 sources.

6. &nternal source- angladesh bank appoints its most of the employees from internal

source through giving promotions.

7. Outsourcing- esides internal sources, angladesh bank collects its employees through

outsourcing but angladesh bank doesn’t apply outsourcing for every task. +t present, this bank appoints assistant director, general manager, deputy director of different divisions through

outsourcing.o recruit employees by outsourcing, angladesh bank seeks help fromdifferent recruiting agency. +t present, angladesh bank recruits employees with the help of

a recruitment agency named O"1*5.

1gree!ent based appoint!ent:


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+t present, angladesh bank follows new policy to recruit employees. &t recruits most of its

employees based on agreement. hese employees who are recruited based on agreement are

not permanently recruited.

Recruit!ent process:

• 2ublish advertisement

• Ierify the applications

• Britten test

• Iiva)voce

• 2ermission of the directors’ committee

• +ppoint the employees

%ublish advertise!ent:

"ecruitment and outsourcing wing gets the list of reuired employees from planning, promotion

and transfer wing and take necessary steps to publish advertisement in newspaper.

Re3uire!ents:

o apply for the post of an officer, an applicant must have the ualifications stated below)

• !onors passed but 9 year !onors is euivalent to masters.

• First class in any of the two examinations out of three. hird class in any examination

will not be granted.

• &n terms of G2+, minimum reuirement is G2+ 8.@@ out of 9.@@

7erify the applications:

+fter receiving the applications from the applicants, the applications

are verified by proper authority.

6ritten test:

o take the written test, angladesh bank reuests different

institutions to submit tender. +fter completing necessary formalities,


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written test is taken.

7iva,voce:

+pplicants who have passed the written test are asked to take part in

viva)voce.

%er!ission of the directors# co!!ittee:

efore making the list of finally appointed employees, getting permission from the directors’committee is a must.

1ppoint the e!ployees:

+fter getting the permission from the directors’ committee, the selected applicants are finally

appointed.

%lanning4 pro!otion and transfer (ing:

2lanning, promotion and transfer wing completes the following tasks)

%lanning:

+t first, planning, promotion and transfer wing makes a list of reuired employees for different

divisions.

%ro!otion:

*mployees of angladesh bank are promoted in two ways, that is)i% ased on seniority ii% asedon talent

alent- /eniority N6-7, every year, employees are promoted on the basis of this ratio.

alent of the employees is evaluated through =2ersonal #anagement /ystem’. *mployees are

also promoted by evaluating educational ualification and working efficiency.

&f an employee completes =anking 3iploma’, then heAshe will get promoted. 8 point will be

earned for completing the 6st part and another 8 point for the 7nd part. On the basis of these points, an employee will get promoted.

&n terms of talent, if anyone scores >? point, heAshe will get promoted.

5ransfer:


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2lanning, promotion and transfer wing decides how the employees will be transferred into

different section and branches, after every 8 year, the employees are transferred into different

section and branches.

"evelop!ent and Benefit "ivision:

Benefits and 1d!inistration 6ing:

his wing process cases related to 02" and retirement of employees from the ank’s service. &t

is responsible to carry out all activities related to developing best market strategies regarding

compensation and benefits like medical, welfare, recreation, accommodation, leave etc. +s per 5itizen 5harter of angladesh ank, focal point desk under this wing is responsible to

consolidate and compile all of the grievances and complains of the public. +n extended section

under this wing is responsible for providing information regarding angladesh ank tothe public as per the "ight to &nformation Ordinance, 7@@>. his wing gives employees

understated benefits)

6. Iacation- he employees can en'oy 7@ days casual leave.

7. /alary- his wing determines the employee’s salary according to the government announced pay scale,

RO2S O/ HR "2%1R5M2-5:

!uman resource department plays a very important role in this bank. hey are as follows-

8etting the best e!ployees:

Bork force planning

/pecifying 'obs and roles

"ecruiting

a% /creening

b% /electing new employees

Out sourcing $having functions and services done by non)employees%

5raining e!ployees:

• 5areer development

• *mployee orientation


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• 0eadership development

• #anagement development )2ersonal development

%aying e!ployees:

/alary

enefits and compensation

2nsuring co!pliance and regulations:

2ersonnel records

*mployee laws

Bork ethics

2nsuring safe (ork environ!ent:

*mployee assistance program

2reventing violence in the work place

2ersonal wellness

Sustaining high perfor!ance e!ployees:

*mployee performance management

2ersonal productivity

"egular training session

2!ploy!ent planning:

he decision as to who should be recruited is taken by the !uman resource 2anel, consisting of

the 5hief *xecutive Officer, 3eputy 5hief *xecutive Officer, consultant !uman "esources and

other *xecutives relevant to the position to be filled. *mployment planning is the first and mostvital responsibility of the whole !" department when it comes to employee recruitment. +

recruitment planning is the guide map employment. &t will further leads to the final selection and

recruitment process.

/indings


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• he ank can not practices proper !"# guideline. he !"# have some ob'ectives but

the bank can not follow all those ob'ectives.

• raining and development sector, there are on)the)'ob and off)the)'ob training techniues

the bank follow some techniue, but the bank can not follow arranges off)the)'ob

techniues video and films show.

• &n the recruitment sector, anking /ector of angladesh. 5an not follow the proper

guideline of !"#.

• o evaluate employee’s performance, anking /ector of angladesh can not

provide their employee’s performance properly.

• he orientation process, the bank can not follow of those process.

• here are several ways of employee’s rewards, such as intrinsic vs. *xtrinsic rewards,

financial vs. non financial rewards, and performance) based vs. membership rewards, but

the bank can not provides all of the system.

Reco!!endations

• he ank should practices proper !"# guideline. he purpose of !uman "esource

#anagement is to improve the productive contribution of people to he organizationways that are strategically, ethically, and socially responsible.

• o get effective and efficient employee’s the ank should arrange proper training and

development programs.

• o motivate the employee’s the bank should follow proper guideline of !"#.

• he entire !" department should be will informed regarding their goals and ob'ectives.

• Cob satisfaction and motivating instruments need for the bank.

• ;. Cob description should be clarified and proper training should be important to

improve the performance to bottom level management.

o evaluate employee’s performance the bank should follow promotion policy properly.

*onclusion:

!uman resource department plays a vital role in operating a company. hese banks have this

department since it started operating in this country. his department is working effectively and

efficiently and continuously putting some extra effort to be always up to date to keep up with the

world. 2racticing !" has a positive impact on the performance of the bank. eing a complete


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separate department to deal with some key responsibilities, they are more focused on what they

are doing and for his reason their efficiency is improving day by day. /o from my opinion

companies which got no !" department should take immediate initiative to start practicing !" in their companies.

Documents

HRM in Bangladesh