Human Resource Management practice in Trust Bank Limited

The vital objective of this report is to analysis Human Resource Management practice in Trust Bank Limited. Other objectives of this reports are to focus on the recruitment and selection process, to focus on the training and development system, to focus on job analysis, to focus on employee performance evaluation process, to focus on the employee rewards and benefits system, to focus on the promotion policy, to develop efficiency and skills of employees, to ensure effective performance of employees, to change behavior of employees, to train up subordinates and to increase job satisfaction.

Objective of the Report

In every organization, human resource contributes a very important role. It is the essential part of the organization that is concerned with the “people” dimension. Like other organizations, Trust Bank Limited has a very strong and efficient human resource department. Human resource is the principal component of an organization. It is defined as “from the national point of view; the knowledge skills, creative abilities, talents and aptitudes obtained in the population; where as from the view point of the individual enterprise”, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees”. For the proper management of human resource and progress of the bank, the bank follows some policies which come under human resource policy or human resource management. So, human resource management is the management of people to achieve individual behavior and performance that will enhance an organization’s effectiveness. Human resource management (HRM) encourages individuals to set personal goals and rewards, guiding them to shape their behavior in accordance with the objectives of the organization that employ them.

To keep the employees in maximum efficient state, the organization follows some motivational factors. Promotion is one of them. Promotion is a term which covers a change and calls for greater responsibilities and usually involves higher pay and better terms and conditions of service and therefore higher status rank. A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better pay/ wages, better status/ prestige and higher opportunities/ challenges, responsibility and authority, better working environment, hours of work and facilities and a higher rank.

While conducting the study, certain aims should be fulfilled while I believe as the objectives of the study. These are as follows-

• General Objective

General objectives of this report are to find out how does Trust Bank Limited maintain HR policy and what are the development strategies that the bank follows.

• Specific Objective

To find out the general objectives, it is necessary to identify the specific objectives. The specific objectives of this report are

• To focus on the recruitment and selection process.
• To focus on the training and development system.
• To focus on job analysis.
• To focus on employee performance evaluation process.
• To focus on the employee rewards and benefits system.
• To focus on the promotion policy.
• To develop efficiency and skills of employees.
• To ensure effective performance of employees.
• To change behavior of employees.
• To train up subordinates.
• To increase job satisfaction.
• To attract efficient people
• To make effectiveness.
• With a view to procure good people
• For people use of Human Resource
• Co-ordination among different section of the organization
• To develop working conditions in the organization
• At last, to relate theoretical knowledge with practical experience in several functions of the Bank.

Methodology

The internship report has been prepared on the basis of “on the job” experience with the Trust Bank Limited, Gulshan Corporate Branch, located at Gulshan, Dhaka. Working with the organization for a meager period of three month is the main aspect of acquiring data and information to evaluate the culture, working environment and similar sort of affairs of the organization.

• Study Design

The report was fully investigative in nature. Data have been collected from both primary and secondary sources. This study mainly based on secondary data available from the various divisions and departments of TBL, in addition to these other necessary information have been collected from the daily news papers, relevant journals, annual reports of TBL, Bangladesh Bank, Ministry of Finance and Planning and publications of other relevant institutions have also been taken into consideration.

• Primary Sources of Data

Many of the data and information were collected from my practical experience and queries from the executives while doing my internship at The Trust Bank Ltd. Information and data regarding recruitment and selection, training and development.

Primary sources data also regarding

• Face to face conversation with the bank officers & staffs
• Different manuals of TBL
• Contact with the course teacher

Secondary Sources of Data

Data regarding the operation of The Trust Bank Ltd. and analysis of financial statement were collected from secondary sources like Annual Report, Brochures, Manuals and Publication of The Trust Bank Ltd, and also the General. Manager’s circulars regarding rules of operation etc. were the major sources of secondary data

Secondary sources data also regarding

• Procedure manuals published by the TBL
• Files and documents of the branch
• Different papers of TBL
• Different text books.

An over view of the Trust Bank Limited

History of Trust Bank Limited      

The idea of setting up a Bank by Bangladesh Army was first conceived in 1987 and on November 29, 1999 the first branch of Trust Bank Limited came into operation.

Trust Bank Limited is a scheduled commercial Bank established under the Bank Companies Act, 1991, which obtained license from Bangladesh Bank on July 15, 1999 and incorporated as a Public Limited Company under the Companies Act, 1994 in Bangladesh on June 17, 1999. The Bank was formally inaugurated and listed as a scheduled Bank on November 1999.

Trust Bank Limited is one of the leading private commercial bank having a spread network of 29 branches across Bangladesh and plans to open few more branches to cover the important commercial areas in Dhaka, Chittagong, Sylhet and other areas in 2008. The bank, sponsored by the Army Welfare Trust (AWT), is first of its kind in the country.  With a wide range of modern corporate and consumer financial products Trust Bank has been operating in Bangladesh since 1999 and has achieved public confidence as a sound and stable bank.

In 2001, the bank introduced automated branch banking system to increase efficiency and improve customer service.  In the year 2005, the bank moved one step further and introduced ATM services for its customers.

Since Bank’s business volume increased over the years and the demands of the customers enlarged in manifold, its technology has been upgraded to manage the growth of the Bank and meet the demands of its customers.

In January 2007, Trust Bank successfully launched Online Banking Services which facilitate Any Branch Banking, ATM Banking, Phone Banking, SMS Banking, & Internet Banking to all customers.  Customers can now deposit or withdraw money from any Branch of Trust Bank nationwide without needing to open multiple accounts in multiple Branches.

Via Online Services and Visa Electron (Debit Card), ATMs now allow customers to retrieve 24×7 hours Account information such as account balance checkup through mini-statements and cash withdrawals.

Trust Bank is about to introduce Visa Credit Cards to serve it’s existing and potential valued customers.  Credits cards can now be used at shops & restaurants all around Bangladesh and even internationally.

Trust Bank is a customer oriented financial institution.  It remains dedicated to meet up with the ever-growing expectations of the customer because at Trust Bank, customer is always at the center.

The bank has plans to invest extensively in the country’s industrial and agricultural sectors in the coming days. The bank has participated in syndicated loan agreement with other banks. Such participation would continue in the further for greater interest of the overall economy. The bank is keen to constantly improve its services to the clients and launching new & innovative products to provide better services towards fulfillment of growing demands of its customers.

Slogan of Trust Bank Limited “Services with Trust”

The word “Trust” implies the meaning of belief and the slogan is “Services with Trust”. So, the meaning of the slogan is to belief on the services of the Bank. Through it is a new type of bank in Bangladesh; it is now familiar with so many countries in the world. Despite it is a local bank, it has spread of its operation in the whole world through foreign banking. To achieve the desired goal, the Bank has intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plan, business networking and more structured service will straighten its competitive edge over in rapidly changing customers all over the world. So, the slogan of the bank is completely adjustable with its operation.

Corporate culture

Trust Bank Limited is a most disciplined Bank with a distinctive corporate culture. In Trust Bank Limited it believes in shared meaning, shared understanding and shared sense making. Employees of Trust Bank Limited see and understand events, activities, objectives and situation in a distinctive way. They are capable enough to mould their manners and etiquette, character and individuality to suit the purpose of the Bank and the customers who are of paramount importance to us.

Ownership Pattern

Presently the bank is owned by the Army Welfare Trust of the country. It holds 99.99% shares and rest (i.e. .01%) is held by the Board members of the bank who are senior army personnel by virtue of Army Welfare trust’s mandate. Therefore the shareholding at present is highly concentrated. However with the floatation of the shares to the public, the shareholding pattern will be diluted with public participation. Against the present authorized capital of Tk. 2000 million the paid- up capital will be raised through ensuring IPO Floatation.

Objective of the Bank

The Trust Bank Limited has been established with the objective of providing efficient and innovative banking services to the people of all sections of our society. One of the notable strengths of this bank is that it is backed by the disciplined and strongest Institution of Bangladesh i.e. Bangladesh Army and there is a synergy of welfare and profits in the dynamics of this institution.

Bank is service-oriented industry and we on our part are committed to ensure customized Qualitative and hassle free services in our banking operations along with the focus to Broaden the clientele base. The bank has extensively in the country’s industrial and agricultural sectors in the coming days. The bank is committed to contribute as such as possible within its limitations for the economic growth and for ensuring value of its available resources.

Strategies and policies of Trust Bank Limited

Trust Bank Limited has some strategies and policies. These are narrated below:

When any business is started, at first it is necessary to set up its vision and mission in order to reach the goal. It is important to build-up strategy and follows the policies. If it can select the appropriate strategy and choose the right policy, it will be very easy to touch its desired position. The distinguishing attribute of policy is to set up the overall boundaries for activities. According to this system, when the bank was started it has to decide what kinds of business it is going to be performed. The Bank also has to decide on its growth goal and its desired profit. The purpose of strategies is to determine and communicate through a system. Major objective of the business is to reach the goal, to reach the desire position from the current status. There might be a number of ways to reach there and it has to decide which way would be easier to reach to the objective. So the authority has to decide which way they will select to proceed.

Activities/functions of TBL

Trust Bank Limited has been established with the objective of providing efficient and innovative banking services to the people of all sections of the society. Towards this end TBL offers full range of normal banking service that include deposit banking, loans and advances, export import, inward worker remittances etc.

a) Deposit Schemes Includes

1. Trust Smart Saver Scheme (TSS)
2. Trust Double Scheme (TMDS)
3. Trust Money Making Scheme (TMMS)
4. Trust Edu-care Scheme (TES)
5. Monthly Benefit Deposit Scheme (MBDS)
6. Lakho Pati Saving Scheme (LSS)
7. Interest First Fixed Deposit Scheme (IFFDS)

b) Retail Loan Products Includes (General):

1. Car Loan
2. Doctors Loan
3. Education Loan
4. Travel Loan
5. Hospitalization Loan
6. Any Purpose Loan
7. Apon Nibash Loan
8. CNG Conversion Loan
9. Marriage Loan
10. Advance Against Salary Loan

c) Retail Loan Products Includes (Defense)

1. HBL (Regd. Mortgage & Commutation Benefits)
2. OD (Against Salary)
3. RRDH (Micro Credit)
4. Above General Loans

d) International Trade Related Services:

1. Private Foreign Currency Account
2. Non-Resident And Resident Foreign Currency Deposit Account
3. Travelers’ Endorsement (Case And Travelers Cheque)
4. Remittance Of Foreign Currency
5. Import And Export Transaction
6. Foreign Exchange Dealings
7. Purchase Of Foreign Currency Drafts
8. Cheques And Travelers Cheques
9. Wage Earner’s Development Bond.

e) Other Services Of TBL Includes:

1. Trust Locker Service
2. Trust Tele Banking

The bank is committed to ensure customized, qualitative and hassle free services in its banking operations along with the focus to broaden the clientele base.

f) Services:

1. TBL operating Online Banking, which ensures reliable any branch banking for customer through Real Time Data Processes sing system.
2. SWIFT facility ensures effective communication between our bank & other local/ foreign banks. Especially for the Foreign Exchange Departments.

Concept of Human Resource Management

• Human Resource Policy

The dictionary meaning of “policy” is a “plan of action” and that “plan” is a policy. Policy is making and planning is, therefore, synonymous. “A policy” says Flippo, is “is a man- made rule of pre- determined course of action that is established to guide the performance of work toward the organization objectives. It is a type of standing plan that serves to guide subordinates in the execution of their task.”

Yoder observes, “A policy is a pre- determined, selected course established as a guide toward goals and objectives… They (Policies) establish the framework of guiding principles that facilitate delegation to lower levels and permit individual managers to select appropriate tactics or programs… In contrast to these, HR policies are those that individuals have developed to keep them on the track towards their personnel objectives… Management policies are developed by working organizations to keep them on course headed and directed toward their organizational objectives. These define the intensions of the organization and serve as guidelines to give consistency and continuity to total operations… They provide a base for management by expediency.

Thus HR policies refers to principles and rules of conduct which “formulate, redefine, break into details and decide a number of actions” that govern the relationship with employees in the attainment of organization objectives.

HRM is the policies and practices involved in carrying out the people of human resource aspects of a management position including recruiting, screening, training, rewarding, and appraising.

The term “Human Resource Management” has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as “Personnel Administration”. The name change is not merely cosmetic. Personnel Administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely concerned the technical aspects of hiring, evaluating, training and compensating employees and was very much of “staff function” in most organizations. The field did not normally focus on the relationship of disparate employment practices on overall organizational performances or on the systematic relationships among such practices. The field also lacked a unifying paradigm.

HRM developed in response to the substantial increase in competitive pressures. American Business Organizations began experiencing by the late 1970s as a result of such factors as globalization, deregulation and rapid technological change. These pressures gave rise to an enhanced concern on the part of firms to engage in strategic planning –a process of anticipating future changes in the environmental conditions (the nature as well as level of the market) and aligning the various components of the organization in such a way as to promote organizational effectiveness.

Although the technical aspects of traditional personnel administration are still an integral component of HRM, strategy formulation and implementation has become its dominant and integrating paradigm. Human resource managers are concerned with designing overall employment systems that are internal complementary and ultimately contribute to the firm’s attainment of its principal goals. The function is also seen to be much closer to the strategic apex of the firm than personnel administration.

The Strategic Human Resource Management (SHRM) literature envisions HR managers as utilizing, in effect, a kind of toolkit of HRM methods that can be crafted into overall organizational HR systems. Schuler (1988), for example, argues that the general organization strategies firms generate give rise to a need to promote specific behaviors on the part of employees (e.g. risk-taking vs. risk avoidance, individual vs. team based, innovative vs. conventional); HR strategies are then designed to elicit desired behavioral repertories. Issues addressed in Hr strategy formulation include- staffing, compensation, training & development, motivation& maintenance.

• Estimation of Workforce

The estimation of workforce in an organization is done by the management to determine the number and type of employees to be needed by the organization at a given point of time. The basic fact of an organization is such that the human resource in an organization constantly changes in terms of its present and future sight. Additional human resources are gained through new employment, vacancies through personnel promotion, through transfer and through demotions. On other hand, personnel are lost through voluntary quit, death, dismissals, termination and retirement. Human resource management of an organization makes the adjustment for wastage, anticipated and expected losses and separations, then finds out the real shortage and surplus number. New recruitment or promotion from within is done if there is shortage and if there is surplus the organization decides the appropriate process for dealing such as layoff, transfer or reduction of hours for the workforce.

• Purpose

HRM practice is fairly recent one. Now a days, many renowned and multinational companies such as General Motors, City Bank Ltd, Trust Bank Limittedetc. have separate Human Resource Department.

The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring  personnel and management practices conform to various regulations. Activities also include managing the approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can’t yet afford part- or full-time help. However, they should always ensure that employees have — and are aware of — personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

• Functions

Human Resource Management is vital functions in organizations. It is becoming more important than ever. Line Managers are getting involved in HRM, and human resource managers are becoming members of the management team. Also, everyone in the organization can make a contribution to the management of people and the success of the organization at the same time. Human Resource Management includes a variety of activities, such as the following

• HR Planning

By analyzing the current workforce will allow the company to evaluate the department performance and helps to realize what kinds of staff are required in order to form the skills which they needed. Owners need to employ the right number of staff in order to make the workforce more efficiency. Too many employees will increase costs, and too few will not able to carry out of its work. Therefore, owners have to analysis both current human resources within the organizations, and future plans or strategies of the organization and the effect on human resources.

Whenever an organization is in the process of the determining its human resource needs, it is engaged in a process we call human resource planning. HRP is one of the most important elements in a successful HRM program; because it is a process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively completing those tasks that will help the organization achieve its overall strategic objectives. Such as-

• To ensure optimum use of Human Resources
• To forecast future skills
• To provide control measure
• To determine recruitment’s level
• To anticipate redundancies
• To determining training levels
• To arrange management development program
• To access future accommodation
• To indicate about lead time

Recruitment & Selection

Successful employment planning is designed to identify an organization’s human resource needs. Once these needs are known, an organization will want to do something about meeting them. The next step, then, in the staffing function assuming, pf course, that demand for certain skills, knowledge, and abilities is greater than the current supply recruiting. This activity makes it possible for a company to acquire the people necessary to ensure the continued operation of the organization.

According to Decenzo & Robbins “Recruitment is the process of discovering potential job candidates for actual or anticipated organizational vacancies. Or from another perspective, it is a linking activity-bringing together those with jobs to fill and those seeking jobs.”

Necessity of Recruitment

Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled.

There are several ways in which HRM has changed earlier attitudes and assumptions of personnel management about managing people. The new model of HRM includes many elements vital to the basic management goal of achieving and maintaining competitiveness.

First, HRM earlier reacted piece-meal to problems as they arose. Effective HRM now increasingly seeks to link HRM issues to the overall strategy of the organization.

Organizations with the most effective HRM policies and practices seek to integrate such policies in corporate strategies and to reinforce or change an organization’s culture.

Second, building strong cultures is a way of promoting particular organizational goals, in that “a ‘strong culture’ is aimed at uniting employees through a shared set of managerially sanctioned values (‘quality’, ‘service’, ‘innovation’, etc.) that assume an identification of employee and employer interests.”

Third, the attitude that people are a variable cost is, in effective HRM, replaced by the view that people are a resource and that as social capital can be developed and can contribute to competitive advantage. Increasingly, it is accepted that competitive advantage is gained through well-educated and trained, motivated and committed employees at all levels. “The existence of policies and practices designed to realize the latent potential of the workforce at all levels becomes the litmus test of an organization’s orientation.”

Fourth, the view that the interests of employees and management or shareholders are divergent and confliction – though substantially true in the past – is giving way to the view that this need not necessarily be so.

Fifth, top-down communication coupled with controlled information flow to keep power within the control of management categories is gradually giving way to a sharing of information and knowledge. This change facilitates the creation of trust and commitment and makes knowledge more productive. Control from the top is being replaced by increasing employee participation and policies which foster commitment and flexibility which help organizations to change when necessary.

Sources of Recruitment

Recruitment is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled. The recruitment methods are-

Internal Search which involved inside of the organization, that may include-transfer, employee referrals, & rehiring.

External Search which include

• Advertisement
• Employment Agencies
• Educational Institutes
• Professionals Organizations
• Unsolicited Application

Cyberspace Recruiting Cyberspace Recruiting is the process of attracting the potential candidates through internet.

Selection

Selection is the screening or filtering process through which recruitment process comes to an end. Selection is the process of eliminating less qualified candidates previously attracted by recruitment and determining the employees those match best to the requirements.

For selection of people, the HR manager should first plan the job requirement of the organization, and then select the individuals who possess specific skills, knowledge and abilities that are directly linked to specific jobs required in the organization.

Generally, more effective employee evaluation and selection decisions are made when more than one person is involved in the decision making process. The operating manager should have more to say about the evaluation and selection decision than their HR specialist. For this reason an effective evaluation / selection skill is an integral part of the management function. The table below Operational and HR management roles illustrates the respective roles of operating managers and HR managers in the evaluation and selection process.

Employee evaluation and selection criteria

If an evaluation / selection program is to be successful the employee characteristics which are believed necessary for effective performance on the job should be stated explicitly in the job specification. The criteria usually can best summarize in the following categories

• Education
• Experience
• Physical Characteristics

Personal Characteristics

Basically, the employee evaluation and selection criteria should list the characteristics of present employees who have performed well in the positions to be filled. However, if the list of characteristics desired is too long, it may not be possible to select anyone. With no list of criterion, the wrong prospects are likely to be selected.

These predictors of success, particularly the more formal mechanisms such as items on a paper and pencil test, have two characteristics

• Reliability
• Validity

The reliability of an employee evaluation and selection instrument, such as a test, is the extent to which the instrument is a consistent measure of something. An intelligence test is said to be reliable, if the same person’s scores do not vary greatly when the test is taken several times. The higher the reliability, the more confidence can be placed in the measurement method. Usually, the instrument is more reliable if it is longer. The instrument used must also be internally consistent to be considered reliable, which is a good predictor of success for the job performance in question.

Reliability and validity can be thought of in the following way. A yardstick is a reliable measure of space; no matter how many times you carefully measure a basketball player, he will be the same height. But a yardstick has no validity as a measure of his muscular coordination. Thus a selection device such as a test may be reliable without being valid. Human resource specialists can compute the validity of a selection instrument several ways.

• One way, is to look at the currently successful employees, find a factor that is common to them, and designate it as a predictor. This is called concurrent validity.
• A second way is to use an instrument such as a test during the evaluation / selection process, then wait until the successful employees are identified and correlate the test or test measures with the successful and unsuccessful employees. This is called predictive validity.
• A third way, sometimes used by smaller organizations, because the numbers of persons in similar jobs is too small to use concurrent or predictive methods, is called synthetic validity. In this case, elements of several jobs that are similar, rather than a whole job, are used to validate the selection instrument. This method is newer than the other two and us used less frequently.

Training & Development

Every organization needs to have well-trained and experienced people to perform the activities that have to be done, if current “or potential job occupants can meet this requirement, training is not important. When this is not the case, it is necessary to raise the skill levels and increase the versatility and adaptability of employees. As jobs have become more complex, the importance of employee training has increased. The rapid changes taking place during the last quarter-century in out highly sophisticated and complex society have created increased pressures for organizations to readapt the products and services produced, the manner in which products and services are produced and offered, the types of jobs required and the types of skills necessary to complete these jobs. In a rapidly changing society, employee training is not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force.

Management Development is more future oriented and concerned with education than is employee training, or assisting a person to become a better performer. By education, we mean that management development activities attempt to install sound reasoning processes to enhance one’s ability to understand and interpret knowledge rather than imparting a body of serial facts or teaching a specific set of motor skills. Development therefore focuses more on the employee’s Personal Growth.

Successful managers have analytical, human, conceptual and specialized skills. They are able to think and understand. Training peers cannot overcome a manager’s or potential manager’s inability to understand cause-and-effect relationships, to synthesize from experience, to visualize relationships or to think logically. As a result, we suggest that management development be predominantly an education process rather than a training process. (Robbins, 99)

Training

Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve the ability to perform on job. Training can involve the changing skills, knowledge, attitudes or behavior. It may mean changing what employees know, how they work, their attitudes toward their work or their interaction with their coworkers or supervisors. The training technique can do much to improve an employee’s job performance. Employee training is not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable workforce.

• Training Approaches

The most popular training methods used by the organization classifies as either on- the- job or off- the- job training.

• On- The- Job Training

The most widely used training methods take place on the job. The popularity of these methods is attributed to their simplicity and the impression that they are less costly to operate. On the job training places the employees in actual work situations and makes they appear to be immediately productive. It is learning by doing. For jobs that either are difficulty to stimulate or is learned quickly by watching and doing on the job training make sense.

On- The- Job Training Method

Job Rotation

Job rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge and abilities. Job rotation is either horizontal or vertical. Vertical rotation is nothing more promoting a worker, into a new position.

• Assistant- To Position

Employees with demonstrated potential are sometimes given the opportunity to work under a seasoned and successful manager, often in different areas of the bank. Working as staff assistants or in some cases serving on special boards, these individuals perform many duties under the watchful eye of a supporting coach. In doing so, these employees get exposure to a wide variety of management activities and are groomed for assuming the duties of the next higher level.

• Committee Assignment

Committee assignment provides an opportunity for the employee to share in decision making, to learn by watching others and to investigate specific organizational problems. When committees are of a temporary nature, they often take on task- force activities designated to delve into a particular problem, ascertain alternative solutions and make a recommendation for implementing a solution. These temporary assignments are both interesting and rewarding to the employee’ growth.

• Off- The- Job Training

Off- the- job training covers a number of techniques- classroom lectures, films, demonstrations, case studies and other simulation exercises and programmed instruction. The facilities needed for each technique vary from a small, makeshift classroom to an elaborate development center with large lecture halls, supplemented by small conference rooms with sophisticated instructional technology equipment.

Off- The- Job Training Method

Lecture Courses & Seminars

Traditional forms of instruction revolve around formal lecture courses and seminars. These offered an opportunity for individuals to acquire knowledge and develop their conceptual and analytical abilities.

Outdoor Training

A trend has been the use of outdoor training. The primary focus of such training is to teach trainees the importance of working together of gelling as a team. Outdoor training typically involves some major emotional and physical challenge. These are white- water rafting mountain climbing upon ball games or surviving a week in the jungle. The purpose of the training is to see how employees react to the difficulties that nature presents to them.

Necessity of Development

Employee development is more future oriented and concerned with education than is employee training or assisting a person to become a better performer. The necessity of development programs are given below

Adaptation with the changes

At present competitive world various changes are being occurred in the business arena. So, in order to adapt with the changes managers must have to have conscious regarding the latest techniques, procedures and changes. Through continuous management development these changes are informed and strategies skilled ness is given. As result managers do not have to suffer to adapt any types of changes.

Introduce new changes

New procedures in business arena must be introduced with increasing the techniques of modern business, technology and rapid social changes. Through management of development the technical and technological knowledge and skilled may be increased for the managers.

To achieve objective

Management development can play an important role to increase the skilled ness of the managers to achieve the aims and objectives of the organization through the smooth co-ordination of the overall elements of the organization, strong handling and control.

Develop efficiency

New technology and technical knowledge can help increase skilled ness in the job arena. By giving modern arts and techniques the efficiency of the managers may be increased.

Versatility

Development program not only gives regarding institutional related knowledge but also gives conception regarding various aspects of the world. So, mangers belong to versatile genius and his intelligence is enriched.

Management obsolescence

Management development refrains from backdated knowledge to the managers. The information of modern techniques, technology, technical knowledge and latest information can inform managers from old knowledge.

Attain job satisfaction

Development process increases efficiency of the managers and creates eagerness towards action. As a result by enriching job attitudes loyalty and high morale is developed towards organization which can play an important role aid to job satisfaction.

Research & Development

Management development creates opportunity for conducting continuous research. As a result, new procedures and process explore in the organization.

Proper Utilization of Resources

Human Resource Management increases efficiency of the managers involved in the organization in order to use effective human resources. As a result of achieving latest techniques and procedures the uses of instruments, element and raw materials of the organization are ensured by proper utilization of resources.

Establish cordial labor management relationship

The development of the organization quietly depends on to established cordial labor management relationship. Management development can play a vital role to reduce the misunderstanding between management and employees and creates good relationship between them. As a result the job dissatisfaction and labor turnover is removed through developed mutual relationship.

Management Development

Development refers to the future oriented training focusing on the personal growth and advancement of the employees usually the employees of upstairs and concerned with education than is employee training or assisting a person to become a better performer. By education, we mean, that management development activities attempt to install sound reasoning processes-to enhance one’s ability to understand and interpret knowledge rather than imparting a body of serial facts or teaching a specific set of motor skills. Development therefore focuses more on the employee’s personal growth.

Successful managers have analytical human, conceptual and specialized skills. They are able to think and understand. Training peers cannot overcome a manager’s or potential manager’s inability to understand cause-and-effect relationships, to synthesize from experience, to visualize relationships or to think logically. As a result, we suggest that management development be predominantly an education process rather than a training process. (Robbins, 99; 250-254)

Methods for Employee’s Development

Some development of an individual’s ability can take place on the job. We will review several methods, three popular on-the-job techniques (job rotation, assistant to positions, and committee assignments) and three off-the-job methods (lecture courses and seminars, simulation exercise and outdoor training).

Job Rotation

Job Rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge, and abilities. Job rotation can be either horizontal or vertical. Vertical rotation is nothing more than promoting a worker into a new position. Horizontal dimension of job rotation, which may be better understood as a short-term lateral transfer.

Job Rotation represents an excellent method for broadening an individual’s exposure to company operations and for turning a specialist into a generalist. In addition to the individual’s experience and allowing him or her to absorb new information, it can reduce boredom and stimulate the development of new ideas. It can also provide opportunities for a more comprehensive and reliable evaluation of the employee by his or her supervisors.

Assistant-To-Positions

 Employees with demonstrated potential are some times given the opportunity to work under a seasoned and successful manager, often in different areas of the organization. Working as staff assistants or, in some cases, serving on special boards, these individuals perform many duties under the watchful eye of a supportive coach. In doing so, these employees get exposure to a wide variety of management activities and are groomed for assuming the duties of the next level.

Committee Assignment

Committee assignments can provide an opportunity for the employee to share in decision making, to learn by watching others, and to investigate specific organizational problems. When committees are of a temporary nature, they often take on task-force activities designed to delve into a particular problem, ascertain alternative solutions, and make a recommendation for implementing a solution. These temporary assignments can be both interesting and rewarding to the employee’s growth.

An appointment to permanent committees increase the employee’s exposure to other members of the organization, broadens his or her understanding, and provides an opportunity to grow and make recommendations under the security of other committee members.

Lecture Courses and Seminars

Traditional forms of instruction revolved around formal lecture courses and seminars. These offered an opportunity for individuals to acquire knowledge and develop their conceptual and analytical abilities. For many organizations, they were offered in-house by the organization itself, through outside vendors, or both.

The lecture is, by definition, words spoken by the instructor.  It is thus a “verbal-symbol” medium, offering a relatively passive and unstimulating experience for learners, unless the speaker has unusual vocal and rhetorical talent.  The lecturer needs plenty of interesting examples to illustrate theory, colorful and persuasive language to enhance a well-organized pattern of ideas, and a pleasant and stimulating voice.

Seminars often combine several group methods lectures, discussions, conferences, demonstrations.

Pros Group members are involved in the training. The trainer can use many group methods as part of the seminar activity.

Cons Planning is time-consuming. The trainer must have skill in conducting a seminar. More time is needed to conduct a seminar than is needed for many other methods.

Lecture

A lecture is the method learners often most commonly associate with college and secondary education. Yet, it is also considered one of the least effective methods to use for adult learners. In this method, one person (the trainer) does all of the talking. He or she may use handouts, visual aids, question/answer, or posters to support the lecture. Communication is primarily one-way from the instructor to the learner.

Pros Less time is needed for the trainer to prepare than other methods. It provides a lot of information quickly when it is less important that the trainees retain a lot of details.

Cons Does not actively involve trainees in training process. The trainees forget much information if it is presented only orally.

Demonstration

Demonstration is very effective for basic skills training. The trainer shows trainees how to do something. The trainer may provide an opportunity for trainees to perform the task being demonstrated.

Pros This method emphasizes the trainee involvement. It engages several senses seeing, hearing, feeling, touching.

Cons It requires a great deal of trainer preparation and planning. There also needs to be an adequate space for the training to take place. If the trainer is not skilled in the task being taught, poor work habits can be learned by the trainee

Conference

The conference training method is a good problem-solving approach. A group considers a specific problem or issue and they work to reach agreement on statements or solutions.

Pros There is a lot of trainee participation. The trainees build consensus and the trainer can use several methods (lecture, panel, and seminar) to keep sessions interesting.

Cons It can be difficult to control a group. Opinions generated at the conference may differ from the manager’s ideas, causing conflict.

FINDINGS OF THE STUDY

Human Resource Management in Trust Bank Limited

Trust Bank Limited is one of the leading private commercial bank having a spread network of 29 branches across Bangladesh. With a wide range of modern co- operate and consumer financial product. Trust Bank has in operating in Bangladesh since 1999 and has achieved public confident as a sound and stable bank. It has a very strong and well- organized HR department. Trust Bank Limited is now operating with total staff strength of 505 employees as on December 31 2006 which was 353 at YE2005. The bank has employee turnover during the year 2006 and 2005 includes only mid level and entry level position. Trust Bank follows a structured service rules and compensation package for its workforce at all levels. The bank provides various Superannuation fund for its eligible staff. The bank has adopted a new policy includes detailed and specific criteria for recruitment of component candidates on the basis of merit only.

Recruitment Policy

Objective of the Policy

Objective of recruiting personnel are stated below

• To build honest, dedicated and trustworthy cadre officers.
• To provide the bank with an efficient and cost effective human resource setup.
• To keep the bank free from unhealthy practice of Trade Unionism.
• To ensure attractive career path for the competent officers.
• To mobilize best quality bankers for providing best services to the customers.

Recruitment Method

Recruitment method of Trust Bank Ltd is very systematic. The bank appoints fresh officers through direct appointment for the post of Management Trainee Officers, Junior Officers and directly appoints widely experienced persons at the lateral posts.

Appointment of Junior Officer

1. The Junior Officer is appointed usually once in a year as per bank’s need basis.
2. Eligibility for the post of Trainee/ Junior Officers
3. Candidate have to be Bangladeshi citizen expect for any overseas appointment if necessary.
4. Maximum Age Limit is 30 years as of application closing date.
5. For the appointment of Junior Officer in General Banking, minimum qualification is Post Graduation from the recognized university/ institute but Master Degree from Business School background and Economic is preferred. Minimum qualification for the appointment of Junior Officer in Non- operational Dept, i.e. Cash and Other Dept. is graduation in any discipline.
6. For Junior Officer in Operational Dept, i.e. General Banking, at least one 1^st division/ class or CGPA- 3.0 under 4 scale or 3.5 under 5 scale in any level of education of the career. For the Junior Officer in Non- operational Dept, i.e. Cash and Other Dept at least 2^nd class division/ class or CGPA 2.5 under 4 or 3.0 under 5 scale is minimum requirement.
7. Person having overseas degree other than from well- reputed institutions have to submit equivalency certificate from the competent authority of Bangladesh.
8. Candidate indicated by the court or with the charge of any criminal proceedings pending is not allowed to apply.

 The required number of candidates is appointed according to merit.

Confirmation

1. Newly appointed Junior Officers have to undergo in- house training on Foundation Course at TBL Training Academy for 2 weeks.
2. Then they remain in Training Period for one year just after joining.
3. On successful completion of Foundation Course, they are posted in every area due to the proper rotation of job and get opportunity to acquire professional knowledge.
4. After one year, they are again provided 15 days long follow- up training namely Advance Course at TBL Academy.
5. Job is confirmed after successful completion of one year training period along with satisfactory score in both the training of Foundation Course.
6. An employee is given a second chance to complete the training successfully if he fails on the first chance.

Appointment of Management Trainee Officer (MTO)

Eligibility for the post of Management Trainee Officers

1. Candidates have to be Bangladeshi Citizen except for any overseas appointment if necessary.
2. Maximum Age Limit is 30 years as of application closing date.
3. The applicants must come from business school background i.e. BBA/ B.Com (Hons.), M.Com in Accounting, Finance, Management, Marketing, Economics, MBA, MBM, CA, and ICM from any recognized university / institution.
4. At least two 1^st Division/ Class of CGPA 3.0 under 4 scale or 3.5 under 5 scales in any level of education of the career. No third class is allowed to apply.
5. Person having overseas degree other than from well reputed institutions have to submit equivalency certificate from the competent authority of Bangladesh.
6. Candidate is indicated by the court or with the charge of any criminal proceedings pending is not allowed to apply.

The opportunity is also given to the in- house employees serving in the post below the rank of Senior Officer and having minimum educational qualification of masters or equivalent degree in any discipline with at least one 1^st Division/ Class or CGPA 3.0 under 4 scale or 3.5 under 5 scale in any level of the career from any recognized university/ institute e to apply for the post.

The mode of the test is in English. Written test is followed by interview.

1. Candidates obtaining qualifying mark are invited for interview
2. Appointment is given to the candidates according to merit list after combining the total written and viva score.
3. Probationary Period & Confirmation
4. Newly appointed Management Trainee Officers remain on one year probation period.
5. Upon joining, they are given three weeks long foundation Training at BIBM (Bangladesh Institute of Bank Management).
6. After successful completion of Foundation course, newly appointed officers are then they are posted in different operational places considering one year as probationary period.
7. After one year they are again provided three weeks long follow- up training namely Advance Course at BIBM or elsewhere.
8. They are confirmed in the post of Senior Officer after successful completion of probationary period including satisfactory score in both the trainings.
9. On becoming unsuccessful to complete both trainings he/ she is not confirmed. But, he/ she get another opportunity to successfully complete the courses with the next batch Management Trainee Officers, and during this time he/ she continue to serve as Management Trainee Officer.

Change of Cadre

Interested employees from Non- operational dept, i.e. Cash Dept, Computer Operators, Telex Operators, Telephone Operators etc are given the opportunity to come in the Operational dept, i.e. in main banking by fulfilling the following criteria.

1. Completion of at least four years continuous service.
2. Completion of Banking Diploma Part One.
3. Getting qualified on the written test internally arranged by the bank which will be in English.
4. Those who meets the above mentioned criteria, is taken out of the Non-operational department and can be placed in the Operational department subject to the availability of the required manpower in the Non- operational department for maintaining uninterrupted service to the service to the customers.
5. Such test is held once in the every two years period.

Selection Policy

Trust Bank Limited has very effective selection policy. Trust Bank selects the candidates through the appointment. The selection of staff (guard, driver, peon etc) of bank is not done directly but managed on casual basis from outside sources. Retired Ansar/ VDP personnel from other agencies are preferred for guard.

There may be exception to the above policy if exclusive situation arises.

Criteria for Appointment

1. Criteria for appointment of all categories of employees are prescribed by Board from time to time.
2. On appointment, every employees fills in and signs employees Regulation and Personnel Record Forms. Letter of acceptance of appointment certificate of fitness from a qualified physician copies of certificate of educational/ professional qualifications and other documents/ papers as required as per terms of appointment letters are to be submitted before joining.

Training

Training is the most effective process for developing quality human resources. It is the requirement to groom up the employees to serve in an efficient way in the service industry, i.e. bank and provide the best services to the customer. Training is very important to develop professionalism in the banking activities and in future to shoulder more important responsibilities of higher post.

Objective of Training

• To build up quality human resources.
• To make highly quality profession in the bank
• To prepare the bankers to efficiently face the future challenge.
• To keep the executives/ officers up- to- date with the latest banking rules and regulations.
• To make them well conversant, thorough and confident about the banking actives.
• And finally to create expert banker with specialty in a particular area such as Credit, Foreign Exchange, General Banking, FCD etc.

Kinds of Training

1. Internal i.e. In- house Training to be held at TBL Training Academy
2. TBL Training Academy arranges Foundation Course and Advance Course (Follow- up) course for the Junior Officers and Others to be appointed fresh.
3. The academy arranges weeklong and two weeks long training program round the year for the officers on various banking issues.
4. The academy arranges workshop, seminar and short course on the contemporary issue related to bank or on any amendment or enactment of law, rules, regulation etc.
5. External Training to be held at Bangladesh Institute of Bank Management (BIBM) or elsewhere in the country.
6. The Management Trainee Officers newly appointed fresh will be provided three weeks long training of Advance Course (Follow- Up) at BIBM or elsewhere. If necessary trainings will be arranged at TBL Training Academy for the Management Trainee Officers.
7. The competent executives/ officers are also sent to participate in the various training related to the banking business to be arranged at BIBM or other suitable institutions.

Specialized Short Training Program

HRD (Training) also conducts following advance level training courses to increase the professionalism of employees

• Book keeping and Accounting of Banking Transactions;
• On Processing of Credit Proposals;
• Credit Appraisal;
• Lending Risk Analysis;
• Customer Services & Business Developments;
• Import costing and financing;
• Export costing and financing;
• Ready made garments (RMG) export financing;
• Travelers cheques and Foreign Remittances;
• Book Keeping of Foreign Exchange and Foreign Trade Transactions;
• Marketing of Banking Services;
• Credit Management;
• Fund Management;
• Credit Needs Assessment of Applicants;
• Performance Budgeting of Banks;
• Project financing;
• Computer package programs;
• Accounting tools for Bank Management;
• Branch Management;
• Other Banking related courses;

Training Area

The training covers the following area

• Staff service, code of conduct, discipline, manner and behavior, code of ethics, violation of service rules, disciplinary action and other matters related to HRD.
• General Banking including Negotiable Instrument Act, Contact Act, Function of Bank, Central Bank and other related matters.
• Loans & Advances including processing of credit proposal, borrower selection, evaluation of credit proposal, types of loan, sanctioning of loan, loan documentation, loan administration, CL and other statements and other relevant matters.
• Foreign Exchange including Letter of Credit, Lodgment of Documents, Negotiation of documents, Adjustment of liability, Correspondent banking and other relevant matters.
• Financial Control including reconciliation of both local and Nostro Accounts, SBs & other statement, central accounts, fund management, call money, Report/ Reverse Report and other related matters.
• Financial Statements and its evaluation.
• Other comp temporary issues related to bank, money market and capital market.

Role of Human Resource Department in Employee Training

There is big role of Human Resource Department in employee training. What, then would be an effective strategy based on the strengths of academicians and managers to make training and development pay off? Here are some suggestions

• Academically oriented resource persons need to learn a great deal about the companies they consult with their products, services, culture, needs, and so on.
• Manager development plans must be integrated with the aims of the enterprise. Academic trainers and consultants need to be up to date on the company’s mission, goals and new policies.
• The teacher trainers must select the train champions with the firm for keeping program’s momentum alive and must conduct follow-up surveys and programs. Continuous reinforcement of new ways of managing is necessary for transferring knowledge and skills from the classroom to the workforce.
• Teacher-trainers will be more effective if they interview trainees before the program begins. These interviews are best conducted at the workplace of the participants that the teacher-trainer is interested in their problems. The program can also be better tailored to the needs of the organization.
• On the basis of an analysis of organizational and individual needs, a combination of training methods should be selected, such as presentations, skill training, individual consultation, and process consultation. Training and development need must determine training methods.
• Training and development must be evaluated on the basis of pre selected, verifiable objectives.
• Academicians as well as managers need to cooperate and use their respective strengths to prepare young people for the challenging job managing.

Recommendation

Trust Bank Limited has recorded a satisfactory level of performance in all the areas of its operations. The success is due to the management and staff of the bank under the able guidance support and patronage of the members of board. Since the birth of Trust Bank Limited in 1999, the organization has shown rapid progress. With its dynamic workforce under Human Resource Department the bank remains deducted to meet up with the ever- growing expectations of the clients. As a very popular bank in the banking sector, the following recommendations can be made to fulfill the customers:

• To establish/availability ATM booth in the different branches of Dhaka City, and also other important cities of Bangladesh.
• To open more branches in different district towns and give reference to best local candidates for employment under HR Department to give best service to local people of that district.
• To expand the existing branches of Trust Bank of different cities including Dhaka to give comfortable service to increase a number of clients.
• The appointment of Junior Officers to be done more than once a year to cope up the growing demand of the clients.

Conclusion

Considering the facts that have been studied so far, it can be stated that Human Resource Management Practice in Trust Bank Limited is quite satisfactory, though all the process of HRM procedures are not strictly followed as stated in the references. Their recruitment & selection, training & development process are upgrade, standard and satisfactory.

The management strategy, organizational setup, attitude towards employees and working environment of Trust Bank has a positive impetus on the overall procedure of the human resource development of the bank. As it is a common perception that the most successful organization always creates a customized blend of all the factors that best fulfills their requirements.

The usual role of the HR department role is to provide assistance in HRM matters and directly interfere in producing the organization’s goods and services. According to their service, acquiring their knowledge, developing the skill of the employees, motivating them to high levels of performance and ensuring that they continue to maintain their commitment to the organization are essential in achieving organizational objective.

On the basis of these principles, the HR division is assigned for completing those tasks that are regarded as necessary. In Trust Bank Limited, the HR Department deals the huge workforce about their recruitment & selection, training & development process from a very efficient and modern viewpoint. Its HR policy and Development strategy are based on appropriate regulations. The HRM practice in Trust Bank Limited can be demonstrated as very much adequate for producing a sincere, honest, punctual, hard-working and intellectual workforce.