Author: Yasir Sabab

United International University

Project Report On

HR Activity of Social Islamic Bank Limited

(SIBL)

AUTHOR

Yasir Sabab

School of Business & Economics,

United International University.

Author: Yasir Sabab

Letter of Transmittal

20th April,2014

Farhana Rashid

Asst. Professor. Faculty of Business and Economics

Subject: Request to accept my project on An Analysis of Human Resource Management

Activity of Social Islamic Bank Limited (SIBL)

Dear Madam,

With respect and honor submission, I want to inform you that, I am a student of BBA of

United International University. I am submitting my project on An Analysis of Human

Resource Management Activity of Social Islamic Bank Limited (SIBL)

I have put my best effort to make this report a successful one. It has been joyful &

enlightening experience for me to prepare this report. However this has been obviously a

great source of learning for me to conduct similar types of studies in the future.

It gives us pleasure to inform you that I have completed my project under your friendly and

kind hearted direct supervision. Now I have placed the project before you for your approval. I

hope my project will satisfy you.

Thank you.

Sincerely yours,

yasirsabab ...............................................

Yasir Sabab

United International University

Author: Yasir Sabab

Declaration by the student

I do hereby declare that the project report titled

An Analysis of Human Resource Management Activity of Social

Islamic Bank Limited (SIBL)

Submitted in partial of the requirement for the degree

Bachelor of Business Administration (BBA)

I also declare that, this paper is my original work and not submitted for the aware of any

other Degree, Diploma and other similar title or prizes.

Author: Yasir Sabab

Declaration by the student

To Whom It Mat Concern

This is to certify that the project report on An Analysis of Human Resource Management

Activity of Social Islamic Bank Limited (SIBL) for the degree Bachelor of Business

Administration (BBA) major in Human Resource Management from United International

University carried out by Yasir Sabab, under my supervision. No part of the project report

has been submitted for any degree, diploma, title, or recognition before.

I wish him very success in his life.

Farhana Rashid,

Assistant Professor,

School of Business,

United International University.

Author: Yasir Sabab

Acknowledgement

To prepare this project report various resources, information and input were collected and

used.

First of all, I would like to convey my sincere appreciation to the almighty Allah for giving

me the strength & the ability to finish the task within the planned time.

I would also like to express my sincere & immense gratitude to my supervisor, Farhana

Rashid, Assistant Professor, School of Business & Economics, United International

University, I am deeply indebted to his wholehearted guidance to me during the report

writing period and her inspiration and encouragement has made me confident and self

dependent. Her tireless efforts and appreciation has greatly contributed to my report. Also her

valuable suggestion & guideline helped me a lot to prepare the report in a well-organized

manner.

I am also grateful to HR Dept. of SIBL for assist me to gather information which can make

easier for my report writing. My sincere gratitude also goes Md. Tanvir Khan ( Assistant

Vice President Information Technology Division), Mohammad Kausar Azam Bhuiyan (

Senior Officer Human Resources Division), S.M.Al-Farehan ( Officer - Human Resources

Division).

I am also thankful to all of the other officers of Social Islami Bank Limited, who helped me

during the preparation of the study by giving their suggestions, assistance & supply of

information, which were valuable to me. Their helping hand supported me to complete my

report successfully.

Finally, I want to give my thanks to my family & friends , who have been the pillar of my

strength and the strong supporter of my success.

Author: Yasir Sabab

Executive Summary

Social Islami Bank Limited is the most renowned Islamic Shariah based bank of Bangladesh.

They run their business by the values, belief and their Islamic culture. My aim is to find out

the HR activities of the employees through the conversation, observing and analysis.

They run their business by offering the full range of banking and investment services for

personal and corporate customers, backed by the latest technology and a team of highly

motivated officers and staffs and their goal is to focus the Customer, Integrity and Honesty,

Quality, Teamwork, Respect for the Individual, Responsible Citizenship, Transparency and

Accountability, Environmentally Conscious, High Morale.

From the bank I have collected information about the HR Activity like: Recruitment and

Selection policy, Payroll system, Employee Motivation, Training and Development system,

Compensation policy, Employee Welfare, Performance Management system and the

satisfaction of the employees by conducting a survey on SIBL Headoffice which is located in

Motijheel and one branches of SIBL which is located in Panthapath and.

I surveyed on 15 employees in the Head office and 12 employees of Panthapath branch and

based on the research result I briefly discussed here the differences between those branches to

complete my project report. After conducting the survey, I collected the information and

analyze the data and conduct the report which is discussing briefly in this report.

I have given my full effort for making the report effectively. Anyone can get a clear idea or

conception about this HR Activities on Social Islami Bank Limited from Bangladeshi

context. I tried to provide all the essential information over here. This report helped me to

implement my analytical knowledge into practical and realistic environment.

Author: Yasir Sabab

Table of Content

Chapter

Content Name Page No.

Introductory Part

Introduction

1-32

Origin of the report 1

Objective of the report

1

Scope of the report 1

Methodology 2

Historical Background of SIBL 2-8

Literature Review 8-30

Limitation

31

Gantt Chart 32

Company Overview

Chapter One Introduction

34-61

1.1 Company Profile

34-35

1.1.i Code of Conduct & Ethical Principles

35-36

1.1.ii Ethical Principles of SIBL 36-37

1.1.iii Board of Directors

37-38

1.1.iv Company values 38-39

Author: Yasir Sabab

1.1.v SIBL Subsidiaries 39-41

1.2 Company Vision 41

1.3 Company Mission 42

1.4 Strategic Objectives 42

1.5 Commitments 43

1.6 Overall Operational goals 44

1.7 Organizational Hierarchy

45

1.8 Organizational Activities 46

1.8.i Products & Services

46

1.8.i (a) Investment Products 48

1.8.i (b) Deposit Products 49-52

1.8.i (c) Cards 52-57

1.8.i (d) E-banking 57-60

1.9 Corporate Social Responsibility

(CSR)

61

Chapter Two Analysis & Interpretation

2.1 Analysis 63

2.1.i Analysis on HR activities 63

2.1.i (a) Employee Motivation 63-64

2.1.i (b)

Training & Development

65-68

Author: Yasir Sabab

2.1.i (c)

Compensation & Benefit Policy

68-72

2.1.i (d) Performance Management

72-73

2.1.i (e) Recruitment and Selection 74-82

2.1.i (f)

Employee Welfare 82-87

2.1.ii Trend Analysis 87-90

2.1.ii (a) Performance of the Bank

90-92

2.1.ii (b) Capital Structure of SIBL

92-96

2.1.iii SWOT ANALYSIS

97-99

2.1.iv COPE Analysis 100

2.2 Interpretation 101-115

Chapter Three Findings, Recommendation &

Conclusion

3.1 Findings

117

3.2 Recommendation 118-119

3.3 Conclusion

119

Reference 120-122

Appendix 123-126

Author: Yasir Sabab

Introduction

Origin of the report

I am Yasir Sabab a student of BBA in United international University. I have done my

major in Human Resource Management. My respectable instructor Farhana Rashid as

assigned me a project which is a requirement to complete my BBA. And to fulfill this

requirement the topic that is given to me is HR Activity of Social Islamic Bank

Limited (SIBL).

Objective of the report

The main objective of the report is to understand the application of hr practices in a

bank. And for this reason I have chosen Social Islamic Bank Limited (SIBL) as my

topic subject. The specific objectives of this report is

To identify the motivational forces of this bank

To identify the training and development areas of this bank

To find out the performance management system of this bank

To get a clear idea about the employee welfare issues of this bank

Identify the compensation management of this bank

Identify the selection and recruitment process of this bank.

Scope of the report

I have chosen Social Islamic Bank Limited (SIBL) as my topic as it is one of the

biggest bank in Bangladesh. SIBL has been running its activities through its 72

branches all over the country. So they have to maintain their HR activity in such a

manner so that so branches can suffer in HR related problem. And to know this

information there must need a key employee from HR in this bank. And as have

managed this so there is a huge scope of working in this topic.

Author: Yasir Sabab

Methodology

As my topic is related with the HR activity so different data and information are

required to achieve the goal of this report. I depended on the two sources to collect

information. From this source I collected various types of information to complete my

report.

For my report, I collected and used the data from two sources:

Primary Data:

Mainly, I collect the data from the employees of the bank about

their HR related information and surveyed on them.

Secondary Data:

I collect some relevant secondary data from different sources like:

websites, different HR related books, Journals and the Annual

Report 2010 of Social Islami Bank Limited.

I use excel for calculation, different types graphical methods for

analysis and interpretation.

I use diagram, process chart by using ms word chart option, online

images, etc.

Historical Background of SIBL:

Social Islami Bank Limited, a second-generation Bank, started its journey on 22nd

November, 1995 with the aim of working together for a caring society. The Bank

has never deviated from the aim. Rather, with the passage of time, our efforts are just

reinforced and invigorated against all odds. With a renewed zeal we strive for

continuous excellence in both our activities and services. Honesty, transparency,

efficiency, accountability, reliability, innovation, flexibility, security and technology

these are the values of SIBL. By upholding and adhering to these values, we are

always vigilant to obtain the trust of our stakeholders.

Author: Yasir Sabab

SIBL now has 86 Branches all over the country with two subsidiary companies -

SIBL Securities Ltd. and SIBL Investment Ltd. 10 new Branches were opened in

2012 to expand our network and bring more people under the coverage of banking

services. The Bank has set its strategy to convert all its banking activities from

traditional branch-based banking system to an ideal blending of both Centralized

Processing Unit (CPU) and effective operation of all Branches.

GENERAL BANKING AREA

Financial institution intermediary that mediates or stands between ultimate borrowers

and ultimate lenders is knows as financial institution. Banks perform this function in

two ways- taking deposits from various areas in different forms and lending that

accumulated amount of money to the potential investors in other different forms.

General banking department aids in taking deposits and simultaneously provides some

ancillaries services. General banking is the front-side banking service department. It

provides those customers who come frequently and those customers who come one

time in banking for enjoying ancillary services. In some general banking activities,

there is no relation between banker and customers who will take only one service

form bank. On the other hand, there awesome customers with who banks are doing its

business frequently. SIBL General banking is divided into six sections:

1. Account opening section.

2. Bills and clearing section.

3. Remittance section.

4. Cash section.

5. Locker Service.

6. Closing of an account.

The Banks professional focus is always on customers satisfaction and that is why

Customer Care Desk has already been installed in our key Branches. In phases One

Stop Service will be introduced for our privileged & fast track clients and also for the

women clients. Social Islami Bank Limited (SIBL) is a banking company registered

under the companies Act 1994 with its head office in 15 Dilkusha C/A, Dhaka-1000.

The bank operates as a scheduled bank under a banking license issued by the

Bangladesh Bank, Central Bank of the country. The Bank started its operation from

22, November 1995.

Author: Yasir Sabab

SIBL is a capitalized new generating Bank with an authorized capital and paid up

capital of Taka 585 million in 2007 and also 585 million respectively as of December

2006.The bank has been entrusted with the responsibility of undertaking various steps

related to the development of the countrys commercial, industrial and agricultural

sectors. The banking sector of a country is called the economic barometer of the

country. As a pioneer commercial bank in the private sector in Bangladesh, Social

Islami Bank provides considerable financial helps to the business sector that imports

industrial goods and/or exports excess production outside the country for profit. SIBL

capital adequacy is a very vital thing for each and every bank. SIBL maintained and

achieved strong position in all key areas of operations despite challenge in 2011.

Capital of the bank was tk.12.60 crore at the very inception, and by the year 2011 it

has increased to tk. 953.45 crore.

Total deposit of the bank stood at tk. 6685.25 crore and total assets stood at tk.

8440.62 crore as on 31 December, 2011 which indicate a growth of 49.05%

respectively over that of the previous year. The bank achieved 46.97% growth in

investment with a total investment portfolio of tk. 5390.86 crore in 2011 compared to

3668.03 crore in 2010. Successful issuance of @ 1:1 Right Share in the year 2011 has

resulted in an effort towards raising the paid up capital to Taka 2987.81 million and

thus capital of the bank stood at Taka 9534.52 million at the year end 2011.

The Ownership Pattern

This is a private sector commercial Bank providing comprehensive range of banking

services. The bank is owned as follows: Promoters 50%Government 5%Public 45%At

present the Bank has an amount of Tk.4000.00 million of Authorized Capital and

Tk.585.00 million of Paid-up Capital.

Human Resource

There is no alternative to skilled and trained manpower in service Industry. Bearing

this in mind the well educated, promising and honest workers are being appointed and

trained. Bank has given top priority to develop skilled manpower and introduce them

with modern technologies with the purpose of developing quality customer services.

The Bank has undertaken program to train up its employees of all strata at its own

Training Institute. A highly experienced person was appointed as Director (Training)

of the Institute in the year 2001 with the task of formulating various training modules.

Author: Yasir Sabab

Steps are being taken to shift the Institute to separate premises for facilitating training

activities. Side by side, both inland and foreign training also imparted during the year

as usual.

Training Institute

Well educated peoples are needed to achieve the objectives of a firm. With a view to

build enthusiastic and skilled work force, Social Islami Bank Training Institute was

established in 24th

October, 1996 at Shyamoli, Dhaka. Every year the Institute trains

sufficient number of employees. By the side of the new employee/officer, it is

possible to trained SIBLs existing employee/officer. There is a library in SIBL. There

is about 2thousand books remain in this library. Accounting, Management, Marketing,

and Computer related books are in this library. In 2007, 1383 officer and no-officer

was trained.

Foreign Correspondents of SIBL

In order to gain maximum advantage from Foreign Exchange related business, the

Bank has entered into correspondent relationship with almost all major 122 Banks of

109countries of the world like Standard Chartered Bank, American Express Bank

Limited, HSBC, HBZ Finance, Mashreq Bank PSC, Dresdner Bank AG and with

local banks in Pakistan, India, Nepal and Bhutan etc with whom we have advising,

reimbursing and confirming arrangement.

Overseas Operations of SIBL

Social Islami Bank has set up joint venture Exchange Company named Gulf Overseas

Exchange Co. Ltd, in Oman contributing 25% of its paid up capital.

The present paid up capital of the company is Riyal Omani 1, 82,000.00. The

Chairman of the company is the ex-minister of the government of Oman. The

exchange company, established in 1985,now has three branches in Oman and is being

managed fully by officials of SIBL. The company is running in profit. SIBL is also

exploring possibilities of opening branches in the Middle East, Switzerland and USA.

Author: Yasir Sabab

Rural Credit Program

Agriculture is the main driving force of economy in Bangladesh. And the whole

economic growth of the country depends on the development, modernization and

investment of money in this connection. As a non-Government financial institution

SIBL has been actively participation in rural credit program in the economic activities

for large population of the country since 1992. SIBL has been working intensively in

collaboration with Barindra Multipurpose Development Authority by conducting the

Rural Credit program particularly in Rajshahi, Naoga, Chapainowabgong, and the

northern part of the country in general. In the last 10 years bank has distributed the

credit for Tk.69.85million.

Shariah compliance

SIBL is a fully Islami Shariah-based Bank and always adheres to compliance of

Islami Shariah principles. We know it well that banking is a service-oriented business

and our clients/accountholders bank with us as we claim to be an Islamic Bank. Thus,

we always try to follow the teachings of Islam in our activities to earn the blessings of

Almighty Allah as well as to strengthen the trust of our clients/accountholders. The

Bank has a Shariah Supervisory Committee consisting of prominent Islamic Scholars,

Economists and Lawyers to advise the Management on Shariah matters relating to the

business operations. Branches are being regularly audited by the Shariah Inspection

teams. Necessary guidance with required rules and procedures based on Islami

Shariah principles are being adopted as per Bangladesh Bank guidelines and advice of

the Banks Shariah Supervisory Committee.

SIBL serve the customers better

SIBL has always tried to bring excellence in everything: from service delivery to

products. Breaking out of the traditional banking practices SIBL has emerged to its

customers in a new form with contemporary services. We are working relentlessly to

make our services modern, up-to-date and available to the general people of our

country. In continuation of our efforts, earlier we introduced SIBL Visa Islamic Credit

Card which can be used at home & abroad and Zameel Debit Card for our valued

accountholders. We are continuously serving our valued clients round the clock for

the last three years with our Visa Card products. Our valued customers are using

Author: Yasir Sabab

SIBL Visa Islamic Dual Currency Cards for shopping and paying Hotel and

Restaurant bills frequently during foreign travel whereas local cards are used within

Bangladesh. In the year 2012, we have enriched our card product line with Visa

Electron, Hajj Card, Gift Card and Travel Card. Very soon we are going to introduce

different types of VISA pre-paid cards viz. Student Card, Tillottama (specially for

ladies), Remittance Card, etc.

FUCNTIONS OF SIBL

Mobilization of idle resources of the country by accepting Deposits from the

general public.

Granting Loans and Advances to the individual firms and companies for

activating and developing trade, commerce and industries and other productive

activities in the country.

To give facilities to the client and shareholders in a systematic way.

Give encouragement to the people for savings.

To increase investment.

To make easy transfer of foreign currency.

To identify consumers demand and fulfill their demand by supplying money.

To improve economy by borrowing financial facility.

SIBL is running successfully and for its good deposit performance the bank occupies

2nd positioning the Islamic Banking Sector. Taken all in all, it can be safely said that

SIBL action program is directed towards development of an authentic participatory

Economy beyond Market Economy. The family empowerment credit program of

Social Islami Bank is gaining ground at the grass root field level in Bangladesh.

Family Empowerment microcredit and micro enterprises program must be designed in

a manner so as to make

a. finance,

b. production,

c. marketing,

d. trading,

e. local specific survey and

f. research as well as moral integrity in one package.

Author: Yasir Sabab

In SIBL approach, credit conveys the totality in life and clearly linked to social

context and cultural setting in conformity with Shariah. There is a better chance in

provision for social subsidy. SIBL takes this opportunity to their valued clients,

patrons, well wishers, correspondents and the shareholders for their support and

patronization extended during the year under review.

Literature Review

Human Resource

Human resource management (HRM, or simply HR) is a function in organizations

designed to maximize employee performance in service of their employers strategic

objectives. HR is primarily concerned with how people are managed within

organizations, focusing on policies and systems. HR departments and units in

organizations are typically responsible for a number of activities, including employee

recruitment, training and development, performance appraisal, and rewarding (e.g.,

managing pay and benefit systems). HR is also concerned with industrial relations,

that is, the balancing of organizational practices with regulations arising from

collective bargaining and governmental laws. [1]

"Human resource management is a process consisting of four functions-acquisition,

development, motivation and maintenance of human resources." by Gary Dessler. [1]

HR is a product of the human relations movement of the early 20th century, when

researchers began documenting ways of creating business value through the strategic

management of the workforce. In startup companies, HR's duties may be performed

by trained professionals. In larger companies, an entire functional group is typically

dedicated to the discipline, with staff specializing in various HR tasks and functional

leadership engaging in strategic decision making across the business. [2]

New hiring not only entails a high cost but also increases the risk of the newcomer not

being able to replace the person who was working in that position before. HR

departments also strive to offer benefits that will appeal to workers, thus reducing the

risk of losing knowledge. [2]Human resources is the set of individuals who make up

the workforce of an organization, business sector, or economy. "Human capital" is

Author: Yasir Sabab

sometimes used synonymously with human resources, although human capital

typically refers to a more narrow view (i.e., the knowledge the individuals embody

and can contribute to an organization). Likewise, other terms sometimes used include

"manpower", "talent", "labour", or simply "people". [3]The professional discipline and

business function that oversees an organization's human resources is called human

resource management (HRM, or simply HR). HR pure and simple is the

implementation of a strategy to drive innovation, productivity and share price through

mobilizing the workforce towards excellence. As David Ulrich (recognized thought

leader in HR) states HR must give value or give notice.The label of "human

resources," now the norm in the profession, designates a broader involvement and

strategic role in the organization than "personnel," which most people associated with

just hiring. [4]The process of hiring and developing employees so that they become

more valuable to the organization. Human Resource Management includes conducting

job analyses, planning personnel needs, recruiting the right people for the job,

orienting and training, managing wages and salaries, providing benefits and

incentives, evaluating performance, resolving disputes, and communicating with all

employees at all levels. [5]

Importance of Human Resource

In reality, HR functions must be conducted for every companyno matter how small

or large. So properly framed, the question to ask is:

For example, many organizations find that its more convenient, and more cost

effective, to outsource transactional services such as payroll, tax, and benefits

administration, while partnering with a strategic HR partner to deliver high value

consultation. [6]An organization cannot build a good team of working professionals

without good Human Resources. The key functions of the Human Resources

Management (HRM) team include recruiting people, training them, performance

appraisals, motivating employees as well as workplace communication, workplace

safety, and much more. The beneficial effects of these functions are discussed here:

a. Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR

managers come up with plans and strategies for hiring the right kind of people.

Author: Yasir Sabab

They design the criteria which is best suited for a specific job description. Their other

tasks related to recruitment include formulating the obligations of an employee and

the scope of tasks assigned to him or her. Based on these two factors, the contract of

an employee with the company is prepared.

b. Performance Appraisals

HRM encourages the people working in an organisation, to work according to their

potential and gives them suggestions that can help them to bring about improvement

in it. The team communicates with the staff individually from time to time and

provides all the necessary information regarding their performances and also defines

their respective roles.

c. Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an

organisation is largely driven by the work atmosphere or work culture that prevails at

the workplace. A good working condition is one of the benefits that the employees

can expect from an efficient human resource team.

d. Managing Disputes

In an organisation, there are several issues on which disputes may arise between the

employees and the employers. You can say conflicts are almost inevitable. In such a

scenario, it is the human resource department which acts as a consultant and mediator

to sort out those issues in an effective manner. They first hear the grievances of the

employees. Then they come up with suitable solutions to sort them out.

e. Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great

extent. They organise business meetings, seminars and various official gatherings on

behalf of the company in order to build up relationships with other business sectors.

Any organisation, without a proper setup for HRM is bound to suffer from serious

problems while managing its regular activities. For this reason, today, companies

must put a lot of effort and energy into setting up a strong and effective HRM. [7]

The main goals / responsibilities of HRM are:

To retain low employee turnover rate by inspiring people to work for the company

Author: Yasir Sabab

To attract new employees

To contribute to employee development

To achieve these goals, Human Resources Management trains and motivates the

employees by communicating ethical policies and socially responsible behaviour to

them. In doing so, it plays a significant role in clarifying the organization's problems

and providing solutions, while making employees working more efficiently.

New challenges arise even now for the organization, and it is certain that new

challenges will never cease to emerge. Therefore, the use of proper Human Resources

techniques is a really powerful way for organizations to overcome these challenges,

and to improve not only their quantitative goals but also their organizational culture,

and their qualitative, cognitive aspects. [8]

What are the Activity of Human Resources?

There are so many activities Lake:

Payroll System.

Employee relations.

Employee communications.

Internal communications.

Employee Motivation.

Training and Development.

Selection & Hiring.

Optional group benefits.

Recordkeeping.

Mandated benefits.

Performance Management.

Employee Welfare.

Special Projects.

Professional Advice.

Management.

Compensation.

Author: Yasir Sabab

Now I am going to discuss some important activities:

Employee Motivation

An individual's motivation is influenced by biological, intellectual, social and

emotional factors. The performance that employers look for in individuals rests on

ability, motivation, and the support individuals receive; however, motivation is often

the missing variable. Motivation is the desire within a person causing that person to

act. People usually act for one reason: to reach a goal. Thus, motivation is a

goaldirected drive, and it seldom occurs in a void. The words need, want, desire, and

drive are all similar to motive, from which the word motivation is derived.

Understanding motivation is important because performance, reaction to

compensation, and other HR concerns are related to motivation. Internal and external

factors that stimulate desire and energy in people to be continually interested in and

committed to a job, role, or subject, and to exert persistent effort in attaining a goal.

[9]

Motivation results from the interactions among conscious and unconscious factors

such as the

(1) intensity of desire or need,

(2) incentive or reward value of the goal, and

(3) expectations of the individual and of his or her significant others.

"Psychological forces that determine the direction of a person's behavior in an

organization, a person's level of effort and a person's level of persistence." G. Jones

and J. George from the book "Contemporary Management." [9]

The following are the features of motivation :

1. Motivation is an act of managers

2. Motivation is a continuous process

3. Motivation can be positive or negative

4. Motivation is goal oriented

5. Motivation is complex in nature

Author: Yasir Sabab

6. Motivation is an art

7. Motivation is system-oriented

8. Motivation is different from job satisfaction

Importance employee motivation:

Motivation is important in getting and retaining people. Motivation tools act as the

glue that links individuals to organizational goals, In addition, make individuals go

beyond the job and be creative. Motivation plays a critical role in achieving goals and

business objectives and is equally as important for companies that work in a team-

based environment or in a workplace comprised of workers who work independently.

When people aren't motivated, they become less productive, less creative, less of an

asset to your company. Now more than ever, we need motivated employees. The fact

is employee motivation is directly linked to business profits, and the more self-

motivated your employees are, the more differentiated and successful you will be as a

business. [9]

Motivating factors:

Motivating factors are drivers of the human behavior related to the intrinsic nature of

the work, but not necessarily to the surrounding circumstances or environment.

Motivating factors include achievement, advancement, autonomy, personal growth,

recognition, responsibility, and the work itself. There are some factors that must be

present in your workplace for your employees to be happy and motivated at work.

Your employees need respect, to be members of the in-crowd, to impact decision

making about their jobs, to have the opportunity to grow and develop, and access to

reasonable leadership. The following describe what employees want from work

Respect is the fundamental right of every employee in every workplace. If people feel

as if they are treated with respect, they usually respond with respect and dignified

actions. Part of respect is praise and feedback so people know how they are doing at

work.Employees want to learn new skills, develop their capabilities, and grow their

knowledge and careers. Making developmental opportunities available to each

employee demonstrates your commitment to helping them develop their careers. They

appreciate this.

Author: Yasir Sabab

Employees want to have an impact on decisions that are made about their jobs.

Employee involvement and employee empowerment help to create engaged

employees willing to put forth their discretionary energy for the business.Employees

do want leadership. They want a sense of being on the right track, going somewhere

that has been defined and is important. If these those factors existed in ever

workplace, productivity, motivation, and happiness would soar. [10]

Compensation System:

Compensation is the total amount of the monetary and non-monetary pay provided to

an employee by an employer in return for work performed as required. Compensation

also includes payments such as bonuses, profit sharing, overtime pay, recognition

rewards and checks, and sales commission. Compensation can also include non-

monetary perks such as a company-paid car, stock options in certain instances,

company-paid housing, and other non-monetary, but taxable, income items. [11]

Compensation (also known as Total Rewards) can be defined as all of the rewards

earned by employees in return for their labour. This includes:

Direct financial compensation consisting of pay received in the form of wages,

salaries, bonuses and commissions provided at regular and consistent intervals

Indirect financial compensation including all financial rewards that are not included

in direct compensation and understood to form part of the social contract between the

employer and employee such as benefits, leaves, retirement plans, education, and

employee services

Gary Dessler in his book Human Resource Management defines compensation in

these words "Employee compensation refers to all forms of pay going to employees

and arising from their employment." [12]

BENEFITS:

Employees today are not willing to work only for the cash alone, they expect 'extra'.

This extra is known as employee benefits. Also known as fringe benefits, Employee

benefits are non-financial form of compensation offered in addition to cash salary to

enrich workers lives.

Author: Yasir Sabab

Workers receive benefits regardless of their performances. Employee benefits as a

whole have no direct affect on employee performance, however, inadequate benefits

do contribute to low satisfaction level and increase absenteeism and turnover in

employees (DeCenzo and Robbins; 2007). So you would have to carefully design

your benefit package. Your package may include a cell phone to each worker, taking

them to a training workshop or seminar, giving them a day or two off every month

and so on. While deciding on the benefits package, do consider the associated costs.

[13]

ADVANTAGES OF COMPENSATION & BENEFITS

Advantages to Your Boutique:

A well designed compensation and benefits plan helps to attract, motivate and retain

talent in your firm (which is my Wear). A well designed compensation & benefits

plan will benefit your boutique in the following ways:

1. Job satisfaction: Your employees would be happy with their jobs and would love

to work for you if they get fair rewards in exchange of their services.

2. Motivation: We all have different kinds of needs. Some of us want money so they

work for the company which gives them higher pay. Some value achievement more

than money, they would associate themselves with firms which offer greater chances

of promotion, learning and development.

3. Low Absenteeism: Why would anyone want to skip the day and watch not-so-

favorite TV program at home, if they enjoy the office environment and are happy with

their salaries and get what they need and want?

4. Low Turnover: Would your employees want to work for any other boutique if you

offer them fair rewards.

Advantage to Your Employees:

1. Peace of Mind: your offering of several types of insurances to your workers

relieves them from certain fears. Your workers as a result now work with relaxed

mind.

Author: Yasir Sabab

2. Increases self-confidence: Every human being wants his/her efforts to get

acknowledgment. Employees gain more and more confidence in them and in their

abilities if they receive just rewards. As a result, their performance level shoot up. [14]

Steps in Compensation Administration

The purpose of compensation administration is to compensate the employees

satisfactorily and equitably and achieve the organizational goals effectively.

Organizations usually develop their own compensation system for determining and

computing the compensation schemes of the employees. An effective compensation

programme involves the following steps:

(i) analysis of the job, (ii) evaluation of the job, (iii) developing the pay structure, (iv)

survey of wages and salary, (v) pricing of the job, and (vi) compensation revision and

control. We shall now discuss these phases involved in compensation administration.

The compensation and benefits department is responsible for the personnel expenses

budget of the organization. The compensation and benefits department sets the

standards for the individual salary increase, the mass salary review and the rules for

the bonus payout as the organization keeps the financial stability and the planned

personnel expenses budget is kept. The compensation and benefits designs new

adjustments to the compensation strategy and the compensation policy as the

organization does not lose its competitive advantage on the job market. [15]

Recruitment and Selection:

Terms that refer to the process of attracting and choosing candidates for employment.

The personnel department of a larger business will often have detailed recruitment

and selection policies that need to be followed by those responsible for hiring new

employees. Recruitment is one of the most important parts of HR, as if you get this

process right youre halfway there, as you have minimised any potential employees

issues that can arise in future. However, if the recruitment is not done effectively then

this will have wide reaching implications for the organisation long term. The latest

statistics show that to replace an existing member of staff it will cost you two and a

half times the employee's salary. Therefore, it is important that the HR is involved in

the entire recruitment and selection process. [16] Recruiters play an important role in

the success of an organization. They essentially act as a filter that -- when used

Author: Yasir Sabab

properly -- only selects the best candidates. In a constantly changing business world,

companies need to hire people who are adaptable, loyal, knowledgeable, dependable

and confident, thereby creating a foundation for success. [17]

Cost

Cost is a major reason why effective recruitment and selection is important. There are

many ways in which poor recruitment practices can result in financial losses.

Retention

Improper recruitment and selection practices can often result in high turnover or

involuntary separations. If a recruiter is not careful when analyzing resumes and

conducting interviews, she may hire an employee with a weak work ethic or a

tendency to move quickly from one job to the next -- "job hopping." Recruiters should

pay close attention to the lengths of time at each previous job and carefully check

references. Another so-called "red flag" is a gradual decrease in responsibility.

Loyalty and Productivity

Loyalty and productivity are linked. Employees who feel dedicated to the

organization will work hard to help it succeed. With this in mind, recruiters must ask

questions that provide information about a candidate's strengths and weaknesses.

Legal Issues

Discrimination is a serious concern among recruiters. If discriminatory hiring

practices can be proven, this could result in serious harm, both financially and in

terms of reputation. The United States Department of Labor forbids discrimination

based on race, color, national origin, sex, disability, religion, political affiliation,

religion or age. Steps can be taken to avoid such complications. First, advertise only

the essential requirements for the position. Provide an accurate job description, listing

only the position name and the specific duties involved. Things such as language

proficiency or physical capabilities should not be listed unless they are absolutely

essential for the role. Use the same questions for every candidate and try to have more

than one recruiter present during the interview. Careful notes must be taken so that

recruiters can justify hiring or not hiring the particular candidate. [18]

Author: Yasir Sabab

In order to increase efficiency in hiring and retention and to ensure consistency and

compliance in the recruitment and selection process, it is recommended the following

steps be followed:

Step 1: Identify Vacancy and Evaluate Need

Recruitments provide opportunities to departments such as aligning staff skill

sets to initiatives and goals and planning for departmental and individual

growth. Although there is work involved in the hiring process, proper planning

and evaluation of the need will lead to hiring the right person for the role and

team.

Step 2: Develop Position Description

A position description also referred to as a job description is the core of a

successful recruitment process. From the job description, interview questions,

interview evaluations and reference checks questions are developed.

Step 3: Develop Recruitment Plan

Each position requires a documented Recruitment Plan which is approved by

the organizational unit. A carefully structured recruitment plan maps out the

strategy for attracting and hiring the best qualified candidate and helps to

ensure an applicant pool which includes women and underrepresented groups

including veterans and individuals with disabilities.

Step 4: Select Search Committee

To ensure applicants selected for interview and final consideration are

evaluated by more than one individual to minimize the potential for personal

bias, a selection committee is formed. The hiring manager will identify

members who will have direct and indirect interaction with the applicant in the

course of their job.

Step 5: Post Position and Implement Recruitment Plan

Once the position description has been completed, the position can then be

posted to the UCR career site via the ATS. Every effort should be made to

ensure the accuracy of the job description and posting text.

Step 6: Review Applicants and Develop Short List

Author: Yasir Sabab

Once the position has been posted, candidates will apply via UCRs job board.

Candidates will complete an electronic applicant for each position (resume and

cover letter are optional). Candidates will be considered Applicants or

Expressions of Interest.

Step 7: Conduct Interviews

he interview is the single most important step in the selection process. It is the

opportunity for the employer and prospective employee to learn more about

each other and validate information provided by both.

Step 8: Select Hire

Final Applicant

Once the interviews have been completed, the committee will meet to discuss

the interviewees. Committee members will need to assess the extent to which

each one met their selection criteria.The search committee rating sheet will be

helpful in justifying decisions and making them as objective as possible.

The best candidate for the position was chosen based on

qualifications

The candidate will help to carry out the University and

Departments missions

Reference Checks

Reference checks should be conducted on the final applicant prior to making

an offer. While it is advisable to conduct a reference with the candidates

current supervisor before a candidate starts employment, if the candidate is

reluctant a conditional offer of employment can be made.

Step 9: Finalize Recruitment

Upon completion of the recruitment process the offer to the selected finalist is

made. The salary to be offered is to be equitable and lead to the retention and

motivation of employees. [19]

Performance Management:

Performance management is the process of creating a work environment or

setting in which people are enabled to perform to the best of their abilities.

Performance management is a whole work system that begins when a job is

defined as needed. It ends when an employee leaves your organization. Many

Author: Yasir Sabab

writers and consultants are using the term performance management as a

substitution for the traditional appraisal system. I encourage you to think of

the term in this broader work system context. A performance management

system includes the following actions. [20]

Develop clear job descriptions.

Select appropriate people with an appropriate selection process.

Negotiate requirements and accomplishment-based performance

standards, outcomes, and measures.

Provide effective orientation, education, and training.

Provide on-going coaching and feedback.

Conduct quarterly performance development discussions.

Design effective compensation and recognition systems that reward

people for their contributions.

Performance management is the systematic process by which the Department

of Commerce involves its employees, as individuals and members of a group,

in improving organizational effectiveness in the accomplishment of agency

mission and goals. [21]

Here are 5 additional performance management tasks that should be a standard

part of your performance management process:

1. Get Employees to Complete Self-Assessments

To drive up employee engagement in your performance appraisal process, and

ensure an effective dialogue between managers and employees, it's important

to include employee self-assessments as part of your process. You can use the

same form you do for your regular performance appraisals, or create a slightly

modified version.

2. Gather 360 Degree Feedback

Let's face it, managers rarely have the full perspective on their employees'

performance. 360 degree feedback can help managers avoid bias, get a

different perspective on their employees' performance and better identify areas

that need coaching or development. And employees often discount negative

feedback as "just your opinion". Substantiating feedback by gathering if from

multiple, credible sources can make it more objective and increase its impact.

Author: Yasir Sabab

You can collect feedback from other managers, peers, subordinates, even

customers - anyone who works with the employee on a regular basis and can

give you insight into their performance.

3. Align Employee Goals with Organizational Goals

We all know the importance of creating SMART (specific, measurable,

achievable, relevant, time-bound) goals for our employees. Part of what makes

a goal relevant is its context.

4. Create Development Plans for Employees

Development planning is most powerful when it's an integral part of the

performance management process, not a separate activity. The performance

appraisal meeting is usually the principal time when managers and employees

discuss performance deficiencies and career aspirations.

5. Reward Good Performance

Finally, it's important to reward and reinforce good performance. Performance

ratings should be a known and visible factor in determining employee rewards

and compensation. Integrating your performance management process with

your compensation management process lets employees know that

compensation practices are fair and based on their performance.

The performance management process is used to communicate

organizational goals and objectives, reinforce individual accountability for

meeting those goals, and track and evaluate individual and organizational

performance results. It reflects a partnership in which managers share

responsibility for developing their employees in such a way that enables

employees to make contributions to the organization.

It is a clearly defined process for managing people that will result in success

for both the individual and the organization. [22]

Training & Development

Training and development refers to the practice of providing training,

workshops, coaching, mentoring, or other learning opportunities to employees

to inspire, challenge, and motivate them to perform the functions of their

Author: Yasir Sabab

position to the best of their ability and within standards set by local, state,

Tribal, Federal and licensing organization guidelines. Training and

development activities provide all involved system of care parties with the

tools they need to develop professionally, increase their knowledge,

effectively work with families, and build their capacity to perform the tasks

associated with their positions within the system of care. Since a system of

care operates within an existing human service agency, it is expected that most

human resource issues, such as hiring, benefits, staff recognition, and

performance appraisal issues, would be handled within the agencys human

resources department. It would be important to make sure that system of care

principles are infused into the day to day practices of human resources

personnel. [23]

Function of Training

The singular function of training is to produce change. It is the upgrading of a

persons skill or the addition of a new skill, which in turn can bring about the

desired change an agency is seeking. It is important to understand that training

in and of itself cannot motivate a work force. However, it is an integral part of

what is needed to accomplish the long-term goals of the agency.

Value of Training

Often supervisors ask, "Why should I provide training to my staff?" There are

many reasons agencies provide training to their employees:

to foster growth and development

to provide opportunities for employees to accept greater challenges

to aid employees in contributing to the achievement of department

goals and the agencys mission and vision

to build employee self-confidence and commitment

to produce a measurable change in performance

to bring about the desired changes that can solve a variety of problems

Benefits of Training

Providing training to an employee benefits both the employer and employee

by:

Author: Yasir Sabab

improving an employees performance

developing the group and team skills needed to achieve organizational

goals

giving employees the needed skills and knowledge to complete

assigned jobs, duties and tasks

motivating employees to achieve higher standards

increasing overall efficiency

improving customer service, which leads to customer satisfaction

preparing employees for promotional opportunities

decreasing employee turnover, which reduces down time

enhancing employee morale, motivation, and creativity

Determining Training Needs

There are a number of ways to determine the type of training an employee will

need.

Request from employee Employees usually are the first to recognize the

need for additional training. This need can result from the assignment of a new

task, technological changes, or just a realization that additional training would

result in a more efficient work product.

Change in agency vision or mission Agency vision and mission can

sometimes change due to state or federal legislation. Thus employees may be

assigned new duties or positions may be restructured.

Determination through performance management review An excellent

time to determine training needs is when a performance review is completed

on employees. Based on the employees self-assessment of identified strengths

and improvement opportunities, an analysis should follow to determine

training that may be needed to improve overall work performance. [24]

Types of Training to Provide

There is no pre-determined "check list" regarding the type of training needed

to ensure employees will always meet performance expectations. Since each

individual is different, supervisors will have to make a thorough assessment of

Author: Yasir Sabab

the type of training needed. Human Resource Management Services conducts

a yearly training needs assessment to ensure programs are being offered that

meet agency requirements. Agencies can also contact Human Resource

Management Services to arrange for specific training based on performance

management review, revised missions and vision, etc.

There are core or basic training programs needed when a person accepts

supervisory or management positions, such as:

Understanding management, organizational and motivational theory,

and application

Planning, setting, and carrying out organizational objectives

Planning and leading effectively

Specific training needed when an individual enters a supervisory position is:

Planning, scheduling, and delegating work assignments.

Communicating, handling conflict, and handling grievance procedures.

Understanding various state and federal employment laws.

Interviewing and completing performance management reviews.

Setting unit goals and objectives.

Levels and Types of Formal Training

We have identified three levels of formal training available to employees. The

type of training selected should be based on the need of the individual, which

can be determined through the performance management review, individual

request, reorganization efforts, or supervisor observation. The Human

Resource Management Services web site lists the various training programs

offered to state agencies. The types of formal training available to employees

are:

- Orientation Training

This training is geared for the newly hired or reassigned personnel. These

programs are designed to give new employees the basic knowledge,

understanding, and skill needed for successful job performance. Programs

Author: Yasir Sabab

include orientation and various job skills training such as computer usage,

communication techniques, phone usage, etc.

- Remedial Training

This training is designed to correct observed deficiencies in employee

knowledge, skill, and attitudes. Programs include stress reduction, time

management, presentation skill building, assertiveness building, business

writing, hands-on experiences in word processing, computer software, etc.

- Upgrading or Advanced Training

This training is designed to improve or upgrade individual job skills and

knowledge. Programs include advanced computer training, decision making,

employment laws, managing conflict, conducting performance evaluations,

sensitivity training, supervisory responsibilities, resolving grievances, etc.

Right Training at the Right Time

Supervisors, who perceive a training need, should contact their human

resource officer or Human Resource Management Services, who can assist in

developing a needs assessment to identify a specific training need.

After agencies know their focus and have developed their plans, they can

determine the exact training needed to meet objectives through a needs

assessment. There are four types of needs assessment. They are:

- Organizational needs assessment

Organizational needs emerge from agency goals, objectives, and priorities.

This type of need can be universal for all employees, such as reducing stress,

improving productivity, etc.

- Group needs assessment

These types of needs are easier to determine because they are closely related

to specific job levels and categories of employees, such as team-building,

problem solving, etc.

Author: Yasir Sabab

- Individual employee needs assessment

The needs uncovered with this type of assessment are more specific and can

be easily identified by reviewing the individuals background, education,

training, experience, skills, knowledge, and past performance. Individual

needs are those skills needed to do the employees current job, future

assignments, and career plans.

- Job needs assessment

Based on the job in question, this type of need can be the most difficult or

easiest to identify. Occupational, job, and task analyses are conducted to

determine the type of training needed. [25]

The Training Process:

1. Assess Objectives & Training Needs

An organization must first assess its objectives: what business are we in? What

product or service do we wish to provide to customers? At what level of

quality do we wish to provide this product or service? Once an organization

has answered these and similar questions, an assessment of human resource

requirements should be undertaken

2. Select Trainees and Training Goals

After needs have been assessed, trainees must be selected and training goals

established. Trainees should be selected with care, ensuring that they and the

organization will benefit from their inclusion in the training program. The

training goals should ensure that the assessed needs will be served.

3. Select Training methods and Trainers

Once training goals have been established, it is necessary to determine how to

conduct the training. This includes the selection of training techniques and

trainers for the program. Additionally, employees ability should be

considered when designing the training program.

Author: Yasir Sabab

On-the-job training Probably the most widely used method of

training is on the job training. It is estimated that more than 60% of

training occurs on the job.

Case method One widespread technique is the case method, which

uses a written description of a real decision-making situation in the

organization or a situation that occurred in another organization.

Role-playing Role playing is a cross between the case method and an

attitude development program. Each person is assigned a role in a

situation (such as a case) and asked to play the role and to react to

other players role playing. The success of this method depends on the

ability of the players to play the assigned roles believably.

In-Basket Technique Another method used to develop managerial

decision-making abilities is the in-basket technique. The participant is

given materials (typically memos or descriptions of things to do) that

include typical items from a specific managers mails, and a telephone

list.

Management Games management games describe the operating

characteristics of a company, industry, or enterprise. These

descriptions take the form of equations that are manipulated after

decisions have been made.

Behavior Modeling A development approach for improving

interpersonal skills is behavior modeling, which is also called

interaction management or imitating models. The key to behavior

modeling is learning through observation or imagination.

4. Evaluation

At the same time, the means to evaluate the program must be established. The

means selected for evaluation must be sensitive to the type of training

conducted, the training techniques used, the training program goals and the

initial training needs.

Author: Yasir Sabab

5. Monitoring

As training is being conducted, provision must be made for ensuring that the

program is proceed as planned. Without monitoring the training process, it is

possible that a well-designed training program may be conducted improperly

or otherwise fail to accomplish its goals.In sum, formal training and

development have been shown to be more effective than informal or no

training and development. [26]

Employee Welfare

Employee welfare is a term including various services, benefits and facilities

offered to employees by the employers. The welfare measures need not be

monetary but in any kind/forms. This includes items such as allowances,

housing, transportation, medical insurance and food. Employee welfare also

includes monitoring of working conditions, creation of industrial harmony

through infrastructure for health, industrial relations and insurance against

disease, accident and unemployment for the workers and their families.

Through such generous benefits the employer makes life worth living for

employees. [27]

Importance of Employee Welfare

As a business, you have to provide various benefits to ensure your

employees' welfare. While this may increase your business expense and

negatively affect your bottom line, looking after your employees will benefit

you in other ways.

Compliance:

As an owner, you are required by law to provide certain benefits for the

welfare of your employees. You may have to match the Social Security taxes

your employees pay and obtain a worker's compensation insurance policy. If

you terminate an employee, you may have to funds to extend his health

insurance.

Hiring and Retention:

The benefits an employee receives from his employer for his welfare are

often a significant reason why he decides to accept a job offer. As such,

Author: Yasir Sabab

providing employee benefits allow you to compete with other businesses to

recruit and retain qualify employees. If other employers offer better benefits,

good employees may choose to go there.

Employees Motivation:

By providing a plan that's good for employees' welfare, you show them

that you value them. This can help make them feel welcome and happy in your

company, motivating them to work harder. If your health plan has wellness

coverage and preventative care, employees are more likely to stay healthy,

cutting down on absenteeism and sick days.

Employees' Well-Being:

For companies that have a large base of employees working under stressful

conditions or living away from family, it is important to look at fostering

personal happiness and professional growth. Investing in employees pays

dividends in terms of higher productivity and greater loyalty.

Company Image:

Providing a good employee welfare plan reflects well on your business,

building a good company image. It may even earn you some press coverage,

giving you free publicity to improve awareness among potential customers.

This may boost your sales and increase your profits. [28]

Features of Employee Welfare

Employee welfare is a comprehensive term including various services,

facilities and amenities provided to employees for their betterment.

The basic purpose of employee welfare is to improve the lot of the

working class and thereby make a worker a good employee and a

happy citizen.

Employee welfare is an essential part of social welfare. It involves

adjustment of an employee's work life and family life to the

community or social life.

How to Develop an Effective Employee Welfare Program

Conduct employee surveys to understand their needs and expectations

Indentify key areas of building skills and engagement and facilitating

trainings for the same.

Author: Yasir Sabab

Propose solutions for personal upkeep, family uplifting and future

security

Objectives of employee welfare

Employee welfare is in the interest of the employee, the employer and the

society as a whole. The objectives of employee welfare are: -

It helps to improve.

It improves the loyalty and morale of the employees.

It reduces labor turnover and absenteeism.

Welfare measures help to improve the goodwill and public image of

the enterprise.

Types of welfare services

The types of welfare services are as follows: -

Housing, Education, Child welfare, Leave travel facilities, Interest free loans,

Workers cooperative stores, Vocational guidance etc.

Employee Welfare Schemes

Organizations provide welfare facilities to their employees to keep their

motivation levels high. The employee welfare schemes can be classified into

two categories viz. statutory and non-statutory welfare schemes. [29]

Author: Yasir Sabab

Limitation

When human being want to do some good work, may be some obstacles are always be

there.

I faced some difficulties to complete my report:

It was difficult enough to cover all the desks within this limited period of

three (3) months.

Banks policy is not disclosing some data and information that is very much

confidential for the bank.

Employees were very much busy in banking hours. Therefore, it was

difficult to conversation with them.

Perceptual difference of the employees to measure job satisfaction.

Since the major source of the data was secret, a lot of important data could

not be used in preparing the report.

There is a difficult matter to collect sufficient data from banks. Many

expected data I have failed to collect. So, lack of sufficient data is one of

the most limitations of preparing of this report.

Most of the essential data are confidential for the bank. So, there is lack of

primary data.

Lack in depth knowledge and analytical ability for writing such report.

I have tried my best and I am feeling glad because I believe that I am overcame all the

difficulties and completed my internship report paper.

Author: Yasir Sabab

Gantt Chart

Activity Week

7 8 9

Started working in the project

Going to instructor for review

Activity Week

1 2 3

Registration for project

Taking topic from instructor

Making questionnaire

Activity Week

4 5 6

Taking appointment to the HR personnel

Going to organization

Gathering Information from

other sources

Activity Week

10 11 12

Correcting Mistakes

Submitting rough report

Submitting Finalreport

Author: Yasir Sabab

Chapter One

Introduction

Author: Yasir Sabab

Chapter One

Introduction

1.1. Company Profile

The SOCIAL ISLAMI BANK LTD (SIBL), a second-generation bank, operating since 22

November, 1995 based on Shariah Principles, has now 86 branches all over the country with

two subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. Targeting poverty,

SOCIAL ISLAMI BANK LTD. is indeed a concept of 21st century participatory three sector

banking model in one. in the formal sector, it works as an Islamic participatory Commercial

Bank with human face approach to credit and banking on the profit and loss sharing: it is a

Non-formal banking with informal finance and credit package that empowers and humanizes

real poor family and create local income opportunities and discourages internal migration; it

is a Development Bank intended to monetize the voluntary sector and management of Waqf,

Mosque properties and introducing cash Waqf system for the first time in the history. In the

formal corporate sector, this Bank would, among others, offer the most up to date banking

services through opening of various types of deposit and investment accounts, financing

trade, providing letters of guarantee, opening letters of credit, collection of bills, leasing of

equipment and consumers' durable, hire purchase and installment sale for capital goods,

investment in low-cost housing and management of real estates, participatory investment in

various industrial, agricultural, transport, educational and health projects and so on.

The bank has taken a renewed drive aiming at consolidating its business in more focused

areas covering SME and Agro-finance with emphasis on searching for alternative delivery

channel under which SMS banking and mobile based remittance payment systems that are

gradually introduced to disseminate the SIBL services to the doorsteps of the customers. The

bank has already introduced Internet banking and launched some new products to strengthen

its business. The products are Sonali Din, Sommridhir Sopan, Sonchoy Protidin, Swopner

Shiri, Shukher Thikana, Sabuj Chhya, Sabuj Shayanho, Subarnolata, Subornarekha,

Sanchaita etc. and Zamil ATM Debit card.

Author: Yasir Sabab

SIBL is a pioneer in introducing on-line banking among all the Islami Banks of the country

with state-of-the-art banking software, which will enable the bank to perform as any branch

real time banking service to the clients. The state-of-the-art banking software of the bank will

enable to perform as any branch real time banking service to the clients. SIBL is supported by

core banking solutions and our products & services are strongly backed by IT infrastructure,

which are upgraded & expanded on continuous basis.

SIBL has set its strategy to convert all its banking activities from traditional branch-based

banking system to an ideal blending of both centralized processing unit (CPU) and effective

operation of branch that based on modern essence of banking. The bank is running its

payment system successfully through BACPS, BEFTN under BACH in order to boost up its

businesses in multiple dimensions. Adopting BACH System as per guidelines of Bangladesh

Bank, SIBL ensures security, safety and hassle free faster transactions from end to end.

Moreover, the bank is effectively adopting regulatory guidelines on IT risk management.

SIBL is quite conscious of its social business responsibilities and is always trying to

participate in various social programs in the country under its CSR portfolio giving special

emphasis on health, habitat & education. The bank ensures to provide better integrated idea

of formal, informal & voluntary banking in the same platform. SIBL has its unique feature to

mobilize capital through CASH WAQF program. SIBL lays emphasis on employment

generated, environment friendly and green banking based investment keeping an eye on

equitable distribution of resources over geographical territory for sustainable growth of

macro economy of the country.

The Bank's continuous effort has been to increase the shareholders' value, and be valued as a

compliant organization. The Corporate Governance systems in SIBL ensure transparency and

accountability at all levels in conducting business.

1.1.i Code of Conduct & Ethical Principles

Code of Conduct for the Employees

Adhere to the Shariah Principles.

Adhere to the disciplinary measures of the bank.

Adhere to applicable laws and regulations during performance of duties,

Author: Yasir Sabab

To inform the customers about the benefits and risks of the products and services

offered to them,

To offer unbiased and fair service to the customers receiving the same services,

Not to disclose the secrets of their customers and the banks which they come to learn

by virtue of their positions and titles to anyone other than those persons and

authorities who are explicitly authorized under laws,

Not to cause any loss of reputation of the bank during works and attitudes,

Not to be engaged in any activity that can be classified as personal business.

Not to behave in contradiction with the principles of justice, integrity, honesty,

reliability and social responsibility,

To cooperate with other employees for common purposes through building a

courteous and diligent communication during their fulfillment of duties,

1.1.ii Ethical Principles of SIBL

Objectivity-the bank shall possess strict principle of objectivity in its day to

day banking operations in relations to its customers, employees, shareholders,

other banks, other organizations by maintaining and protecting the stability

and trust in the banking sector.

Just and equitable-the bank shall have no discrimination and avoid all forms of

bias in its attitudes towards employees as well as to its customers.

Honesty-the bank during its operations shall stick to the honesty principle in

relations to customers, employees, shareholders, other banks, regulators and

the stakeholders.

Impartiality-the bank is impartial towards its customers based on their

nationality, religion, financial and social standing, and gender during banking

service.

Reliability-the bank shall offer clear, comprehensible and correct information

to its customers within the principle of reciprocal trust during services and

transactions; and to provide the customer services in a timely and complete

manner.

Transparency-the bank shall inform its customers in an open, easily

understandable and clear way regarding the underlying rights and

Author: Yasir Sabab

responsibilities, benefits and risks attached to the products and services

offered to them.

Observing Social Benefit and Respect to Environment-the bank shall show

due diligence to support all kinds of social and cultural activities in the light of

the principle of observing, aside from the profitability, the social benefit and

respect to the environment.

Fighting money laundering -the bank has a policy to fight against corruption

and Money laundering etc. as a significant principle as stipulated by

international norms and the provisions of national laws and regulations. The

bank shall take appropriate measures to discharges duties by the employees

with utmost due care and caution to fight the laundering of crime originated

assets.

Insider Trading-the bank has a clear policy and take all measures in order to

prevent the use of insider information for the trading purposes.

Relations with public organizations, regulators and other institutions the

bank, during its relations with the public organizations, regulators and other

institutions, should act in observance of the principles of honesty,

accountability and transparency, and should show the utmost care for the

correct, complete and timely communication of the information, documents

and records in accordance with the laws and regulations of the country.

Personnel behaviors the bank shall avoid all kinds of practices and

applications that may cause unfair competition in the employment of the

personnel.

1.1.iii Board of Directors

i. Mr. Md. Anisul Hoque (Chairman)

ii. Alhaj Sk. Mohammad Rabban Ali (Vice Chairman)

iii. Mr. Md. Sayedur Rahman (Vice Chairman)

iv. Major (Retd) Dr. Md. Rezaul Haque (Director)

v. Alhaj Sultan Mahmood Chowdhury (Director)

vi. Mr. Abdul Awal Patwary (Director)

vii. Alhaj Nasiruddin (Director)

viii. Mr. Mohammad Azam (Director)

Author: Yasir Sabab

ix. Mr. Mohammad Fazley Morshed (Director)

x. Mr. A Jabbar Mollah (Independent Director)

xi. Mr. Md. Shafiqur Rahman (Managing Director)

1.1.iv Company values

Honesty

To be honest is ordained by the scripture we stick to this value in all our service

provision.

Transparency

Remaining transparent in all acts is a virtue that's builds trust - we adhere to it.

Efficiency

Efficiency implies perfection in any job done - we strive to render full satisfaction

with it.

Accountability

To be accountable is to be responsible and above any suspicion - we are dutifully

there.

Religiousness

SIBL enhances economic well being with regard to the bliss of religious ethics.

Innovation

Our minds and eyes are open to the evolution in quality of life to innovate further

benefits for the service takers.

Flexibility

Flexibility leads to better understanding and greater satisfaction - we pursue the

quality.

Author: Yasir Sabab

Security

Customers must feel secure with all our products and services - we keep on ensuring

it.

Technology

Modern life is technology dependent - we keep looking for the latest development to

provide the best in ease to our clients.

1.1.v SIBL Subsidiaries

1. SIBL Securities.

2. SIBL Investment.

SIBL Securities

About Us

SIBL Securities Limited (SIBLSL), a subsidiary company of Social Islami Bank Limited and

promised to be a leading brokerage house in the country has been set up with a view to strengthen the

countrys capital market.

SIBL Securities Limited has started its stock broking in countrys both stock exchanges (DSE & CSE)

at a time. SIBLSL provides investors with a platform to trade in both the Dhaka and Chittagong Stock

Exchanges. SIBL Securities Limited has got license from the SEC as a Stock Broker & Stock Dealer

in both the Dhaka and Chittagong Stock Exchanges. SIBLSL also licensed by the CDBL as a full

services Depository Participant (DP).

Key Strength:

Exceptional quality and professionalism in its service offering to clients

An experienced and dedicated senior management team

A trained and professional sales team

A competent equity market research unit

Author: Yasir Sabab

Online Trading Facility from anywhere in the world

State of the art technology utilized in trade execution and back office and

reporting systems

Services

Bo (Beneficial Owner) accounts opening and maintenance

Dematerialization and Re-materialization

Transfers and multiple accounts movement

Pledging, un-pledging and confiscation

Corporate events announcement enquiry (Cash and non Cash).

BO ISIN balances and master maintenance enquiry

Brokerage service for Institutional Clients like Insurance company and

other Institutions.

Banks and Financial Institutions

Brokerage Service for retail (Individual) Clients

Margin loan facility at affordable Profit rate

International and Domestic Placement of Securities;

Trade Execution Dhaka and Chittagong Stock Exchange Limited

Pre-IPO private placement opportunities through Merchant Banks

Research

SIBL have an expert research team. They provide:

Daily price information Market Overview, Daily Fact Sheet

Monthly report

Industry/Corporate research report

Free access to our company research reports through our web-site

sectors and Company research reports

Author: Yasir Sabab

Functions of

Social Islami

Bank Limited.

Deposit

procurement &

management under

Shariah

Principles

Social Services

(CSR)

Investment

using Islamic

Financial

Contract

Financial Services

i.e. Letter of Credit,

Guarantee, Money

Transfer etc.

Functions of Social Islami Bank Limited

Figure: 1.1

1.2 Company Vision

In our journey towards continuous excellence we are striving to become the country's leading

Islamic Bank offering one-step service of an wide range of value added products and services

meeting the needs of our customers; conducting our business ethically in accordance with the

laws of Shariah while optimizing best utilization of the most modern state-of-the-art

technological solutions through creation of pro-active organizational culture based on sound

team spirit, fairness, mutual understanding and pragmatic leadership always remaining open

to new ideas and adaptable to the best practices in the market ensuring recognition and

quality banking experience to our Customers and deliver best value to all our stakeholders as

well.

Author: Yasir Sabab

1.3 Company Mission

Transformation into a service-oriented technology-driven profit earning Bank.

Ensure fast, accurate and best-in-class customer service.

Balanced & sustainable growth strategy.

Optimum return on shareholder's equity.

Introducing innovative Islamic Banking Products.

Attract and retain high quality human resources.

Empowering real poor families and create local income opportunities.

Providing support for social benefit organizations by way of mobilizing Funds and

social services.

1.4 Strategic Objectives

Transformation into a service-oriented technology driven profit earning bank.

Ensure fast, accurate and best-in-class customer services with customers satisfaction.

Balanced and sustainable growth strategy.

Optimum return on shareholders equity.

Introducing innovative Islamic Banking Products.

Attract, motivate and retain high quality human resources.

Empowering real poor families and creating local income opportunities.

Providing support for social benefit organizations by way of mobilizing Funds and

social services.

To