Internship Report on HRM Practices in Banking Sector of Bangladesh

The main objectives of this report is to find out the overall HRM process of various banks of Bangladesh. Other objectives are to know the functions of various departments of HRM and to learns about bank’s employment planning. Here also discuss on recruitment and selection process and learn about the employee benefits. Finally making a precise picture of the present situation of employment procedure in Bangladesh.

Objectives of Study:

Every task has a particular aim. A study without objective cannot reach its destination. The main objectives of this study are to find out the overall HRM process of various banks of Bangladesh. The objectives of the study conducted in the banks are mentioned as under:

1. To know overall HRM process of the bank
2. To acquire practical knowledge on HRM practice
3. To know the functions of various departments of HRM
4. To learns about bank’s employment planning
5. To be familiar with the recruitment and selection process
6. To learn about the employee benefits
7. Making a precise picture of the present situation of employment procedure in Bangladesh.

Scope of the study:

“HRM practice in the banks of Bangladesh”

First of all it will help the researcher to get a clear idea of the HR department and its working procedures as well as its key roles in a company.

Secondly, Human Resource is an emerging concept in Bangladesh and organizations such as a Bank put much more emphasis on this department so this study will help the organization as well. In this regard, this research will help to increase organization’s performance in a way the employee of the organization will think.

Last of all, it will encourage further study in this area and will provide useful guidelines for this type of research.

Type of research:

1. From the view point of Objective, it is an Applied Research as the research was   undertaken   to   answer   some   specific   question.

2. From the view point of function it was a Descriptive research as the research was undertaken    to    know    the    practice    of   HR.

3. From the view point of Nature of Data, the research was mainly based on qualitative data

4. From the view point of Research Place it was both ‘Field Research’ and ‘Desk Research’ as the research was conducted among the employees of HR Department and some HR related department of the Banks by asking questions to them with the help of some necessary procedures and documents    of   human    resource    department.

Research design:

Research design is a vital part of the research. There are different types of data collection methods. Among them this research is conducted on the basis of both survey and secondary data analysis. To collect all the primary data survey method has been used. To collect the secondary data secondary data analysis method has been used. In survey method, all Primary Data was the Qualitative Data and was collected by asking questions through interview and formal and informal discussion. No questionnaire was used for this purpose.

From the view point of Communication, the survey was conducted through ‘Human Interactive Media’.

Data collection:

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

1. Primary data collection:

All the required primary data were collected through direct interview and also through informal discussion. Primary data are collected through: Open ended and close ended questions Conducting interview of the staffs of the branch

2. Secondary data collection:

Secondary data are collected from, Annual report Company’s previous

report Company’s other published information

Data analysis:

There is no certain analyzing tool to analyze the data of a descriptive research. This study is mainly explaining the HR activities in banks.

Industry Overview of the study

Banking industry in Bangladesh:

The Banking Industry in Bangladesh is one characterized by strict regulations and monitoring from the central governing body, the Bangladesh Bank. The chief concern is that currently there are far too many banks for the market to sustain. As a result, the market will only accommodate only those banks that can transpire as the most competitive and profitable ones in the future. Currently, the major financial institutions under the banking system include:

1. Bangladesh Bank
2. Commercial Banks
3. Islamic Banks
4. Leasing Companies
5. Finance Companies

Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11 foreign banks, 26 domestic private banks and 4 Islamic Banks currently operating in Bangladesh.For analyzing the human resource management process we have chosen 3 banks which are-

1)     Bangladesh bank- the central bank of Bangladesh

2)    Commercial bank of Ceylon- foreign commercial bank

3) National bank ltd – private commercial bank

Human Resourse Management (HRM)

Human resource is a term used to describe the individuals who  comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials ‘HR’.

Human resources purpose and role:

In simple terms,  an organization’s human resource management strategy should maximize return on investment in the organization’s human capital and minimize financial risk. Human Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organization’s ongoing and future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring such objectives are achieved, the human resource function purpose in this context is to implement the organization’s human resource requirements effectively but also pragmatically, taking account of legal, ethical and as far as is practical in a manner that retains the support and respect of the workforce.

Key functions:

Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:

1. Recruitment, selection, and on boarding (researching)
2. Organizational design and development
3. Business transformation and change management
4. Performance, conduct and behavior management
5. Industrial and employee relations
6. Human resources (workforce) analysis and workforce personnel data management
7. Compensation, rewards, and benefits management

8. Training and development (learning management)
9. Implementation of such policies, processes or standards may be directly managed by the HR function itself, or the function may indirectly
10. Supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations.

Compensation Management:

Compensation Management is an integral part of the management of he organization. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. It may achieve several purposes assisting in recruitment, job performance, and job satisfaction. It is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. It is a tool used by management for a variety of purposes to further the existence and growth of the company. It may be attuned according to economic scenario, the business needs, goals, and available resources. Compensation Management contributes to the overall success of the organization in several ways. To be effective, the managers must appreciate the value of competitive pay, their human resources, and have an investment view of payroll costs. We want to maintain pay levels that attract and retain quality employees while recognizing the need to manage payroll costs.

The increasing competitiveness of the labour market and turnover of employees had resulted in nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies had almost resulted in a compensation war in certain industries. Therefore, the human resources managers and tax experts have to evolve proper compensation planning for High end and qualified employees. The components of compensation have to be devised in such a way that, it focuses on the growing demands of employees while retaining the competitiveness and profitability of the company.

Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasised on only determination of wage and salary structures in organisational settings. Pay is a difficult topic of conversation in most organizations. In fact, the topic is altogether taboo in many workplaces. It simply isn’t discussed unless absolutely necessary. And, when it is necessary, such as when a pay raise (or lack of one) must be explained to an employee, many managers find themselves at a loss for words. As the dreaded date of such a discussion approaches, managers may begin checking their sick time banks to see if they can disappear for a day or two.

While it may be a touchy subject, pay is a critical factor in the work lives of employees. Jobs are accepted or rejected based in part on starting salary and the opportunity for future increases in pay. Employees compare their pay to that of others in the same line of work. They constantly compare their pay level to their level of contribution, trying to determine whether the ratio of give and receive is a fair one. While it may not be a frequent topic of open discussion, employees think about pay often.

Components of compensation:

Basic wages/Salaries:-

These refer to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount which is subject to changes based on annual increments or subject to periodical pay hikes. Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by the employee. Wages and salaries are subject to the annual increments. They differ from employee to employee, and depend upon the nature of job, seniority, and merit.

Dearness allowance:-

The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by him. The onslaught of price increase has a major bearing on the living conditions of the labour. The increasing prices reduce the compensation to nothing and the money’s worth is coming down based on the level of inflation. The payment of dearness allowance, which may be a fixed percentage on the basic wage, enables the employees to face the increasing prices.

Incentives:-

Incentives are paid in addition to wages and salaries and are also called ‘payments by results’. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: {a) Individual incentive schemes, and (b) Group incentive programmes. Individual incentives are applicable to specific employee performance. Where a given task demands group efforts for completion, incentives are paid

to the group as a whole. The amount is later divided among group members on an equitable basis.

Bonus:-

The bonus can be paid in different ways. It can be fixed percentage on the basic wage paid annually or in proportion to the profitability. The Government also prescribes a minimum statutory bonus for all employees and workers. There is also a bonus plan which compensates the Managers and employees based on the sales revenue or Profit margin achieved. Bonus plans can also be based on piece wages but depends upon the productivity of labour.

Non-monetary benefits:-

These benefits give psychological satisfaction to employees even when financial benefit is not available. Such benefits are: (a) Recognition of merit through certificate, etc. (b) Offering challenging job responsibilities, (c) Promoting growth prospects, (d) Comfortable working conditions, <e) Competent supervision, and (f) Job sharing and flexi-time.

Commissions:-

Commission to Managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage on the target achieved. For taxation purposes, commission is again a taxable component of compensation. The payment of commission as a component of commission is practised heavily on target based sales. Depending upon the targets achieved, companies may pay a commission on a monthly or periodical basis.

Mixed plans:-

Companies may also pay employees and others a combination of pay as well as commissions. This plan is called combination or mixed plan. Apart from the salaries paid, the employees may be eligible for a fixed percentage of commission upon achievement of fixed target of sales or profits or Performance objectives. Nowadays, most of the corporate sector is following this practice. This is also termed as variable component of compensation.

Piece rate wages:-

Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages for each of the Quantity produced by them. The gross earnings of the labour would be equivalent to number of goods produced by them. Piece rate wages improves productivity and is an absolute measurement of productivity to wage structure. The fairness of compensation is totally based on the productivity and not by other qualitative factors.

Fringe benefits:-

Fringe benefits may be defined as wide range of benefits and services that employees receive as an integral part of their total compensation package. They are based on critical job factors and performance. Fringe benefits constitute indirect compensation as they are usually extended as a condition of employment and not directly related to performance of concerned employee. Fringe benefits are supplements to regular wages received by the workers at a cost of employers. They include benefits such as paid vacation, pension, health and insurance plans, etc. Such benefits are computable in terms of money and the amount of benefit is generally not predetermined. The purpose of fringe benefits is to retain efficient and capable people in the organisation over a long period. They foster loyalty and acts as a security base for the employees.

Profit Sharing: –

Profit-sharing is regarded as a steppingstone to industrial democracy. Profit-sharing is an agreement by which employees receive a share, fixed in advance of the profits. Profit-sharing usually involves the determination of an organisation’s profit at the end of the fiscal year and the distribution of a percentage of the profits to the workers qualified to share in the earnings. The percentage to be shared by the workers is often predetermined at the beginning of the work period and IS often communicated to the workers so that they have some knowledge of their potential gains. To enable the workers to participate in profit-sharing, they are required to work for certain number of years and develop some seniority. The theory behind profit-sharing is that management feds its workers will fiilfill their responsibilities more diligently if they realise that their efforts may result in higher profits, which will be returned to the workers through profit-sharing.

Approaches of compensation management

There are 3P approach of developing a compensation policy centered on the fundamentals of paying for Position, Person and Performance. Drawing from external market information and internal policies, this program helps establish guidelines for an equitable grading structure, determine capability requirements and creation of short and long-term incentive plans. The 3P approach to compensation management supports a company’s strategy, mission and objectives. It is highly proactive and fully integrated into a company’s management practices and business strategy. The 3P system ensures that human resources management plays a central role in management decision making and the achievement of business goals.

1. Paying for position
2. Paying for person
3. Paying for performance

Because it is so important to employees, the issue of pay deserves to be dearly addressed. In spite of their hesitanee, managers are capable of dealing with this sometimes difficult issue in a professional and effective manner. By keeping the following basic points about pay in mind, they can address virtually any pay-related topic with their employees in a professional and productive manner.

Specificity is Key

Pay is a topic with many different shades and a variety of implications. Whenever approaching the subject, it is important to work out the details beforehand so that specifics can be clearly communicated. For the manager, this means that the increase amount is nailed down before discussing a promotion with an employee. No chance of misunderstanding or false expectations can be permitted. Far too often, managers are apt to discuss generalities. “It will mean a good increase.” What exactly does that mean in terms of the employee’s monthly budget? If care is not taken here, good news can become the source of conflict and resentment.

By the same token, if asked for a raise, the manager should request that the employee suggest a specific number that he believes reflects his value. Once the employee provides that number, the manager can do his homework and decide what, if anything can be done. The employee can then be given a definitive response.

Pay is Relative

What one employee considers a fantastic increase maybe an insult to another? Each individual has a unique set of creativity and competencies. Pay should be based on the performance, position and the competencies/skills the person is having.

Pay is Not Created Equal

Various forms of pay have different purposes. The two most common forms of direct cash compensation in most companies are base pay and bonus. Base pay is the annual salary or hourly wage paid to an employee given the job he holds, While bonus is typically (or at least should be) rewarded based on the achievement of a goal of the organization. Discussions about bonus payments should be as specific as possible. This is the opportunity to point out particular accomplishments that contributed to overall team or company success. Even if the bonus is paid to all employees based on a simple overall company profit target, the manager should use the opportunity to point out specifically how individual employees helped achieve that target.

Distributing bonus checks presents a unique motivational opportunity for a manager. Handing money to an employee while discussing actions and behaviors he would like to see repeated, creates a powerful link between performance and reward. Discussions about base pay increases can be a bit different. Most companies claim to link their annual base pay increases to performance. In reality, however, base pay decisions take into account a variety of factors, including the relative pay of others in the same job, the company’s increase budget, market practices and where the individual falls within his pay range.

Even when performance is a factor, the manager is faced with the difficult task of evaluating an entire year’s worth of activity and then categorizing it according to the percentage increase options allowed by the budget. It becomes very difficult to pinpoint specific employee actions or accomplishments as the reason for the increase.

For these reasons, it’s appropriate for the discussion about base pay increases to be more general and balanced. Both strengths and weaknesses of the employee should be addressed. The actual increase is then based on an overall assessment, as opposed to a link with one or two specific outcomes. Any other factors that impact the increase percent, such as budget or pay range should be openly discussed as well.

Development of a Compensation Philosophy

All organizations pay according to some underlying philosophy about jobs and the people who do them. This philosophy may not be in writing, but it certainly exists. Pay maybe treated in a formal and structured manner at one company. At another, any appearance of structure is intentionally avoided so that decisions can be made arbitrarily. Either way, the approach taken reflects a fundamental belief about people, motivation and management. Before an organization actually develops a compensation plan, there are several questions that need to be answered. Taking the time to consider and answer these questions will make the both the process of developing and administering a compensation plan much easier and will result in the development of a compensation plan that more closely matches the organization’s goals and objectives. Managers often want to view each individual as a separate ease. It is important to understand, however, that employees operate within a compensation system. A manager is wise to take the time to learn as much as possible about his company’s compensation system.

What is the goal of the organization’s compensation system? In addition to attracting and retaining qualified employees, is there an intent to reward employees for good performance, motivate good performance, and/or create or reinforce a particular type of organizational climate?

What is the communication policy? How is the organization going to communicate the compensation plan to employees once it has been developed? Is the organization prepared to evaluate the effectiveness of any such communication? If so, how? How will decisions regarding pay be made? Who will be involved in these decisions? What decision guidelines will need to be developed?

What is the organization’s desired market position relative to pay? Will the organization choose to pay market rates, above market or below market? How does the desired market position fit with other strategic goals? Are there any competitive factors involved mat will determine the pay strategy?

What is the desired mix between benefits and cash? Since benefits are an important form of compensation, how does an organization use them to maximize the effectiveness of the compensation plan?

What does the organization pay for? Does it pay for performance or seniority or some combination of the two?

What is the role of performance appraisal in the organization? How important is performance appraisal and why?

How will the organization manage change to the compensation plan once it has been developed? What systems need to be in place to implement any changes including deciding when change is necessary and who will make these decisions?

How does the compensation philosophy and plan fit with the rest of the organization? How can the compensation practices reinforce other overall management philosophies and objectives?

While the answer to “how much?” is of course important to employees, they are also concerned about the “why?” of pay. In other words, while the actual amount of pay is very important, employees also are interested in the rationale used to determine it. Research has shown that pay satisfaction increases with understanding of the pay scheme. Managers often leave this area to the HR department. Ideally, however, managers themselves will be the primary conduit of information on this topic. If a manager does not know the company’s pay philosophy, he should seek out whomever in the organization is responsible for pay administration and get the answers he needs. Job seekers who go into the negotiation process with their eyes wide open keep an important fact in mind: A few thousand dollars one way or the other can quickly become a gain or a loss depending on other benefits. Money is important, but it must be put in the context of other pros and cons-some of which have a dollar value and some of which do not. Managers should be the company’s biggest ambassadors when it comes to the value of benefits and work environment factors. Sharp companies do a good job of showing the value of these hems. Smart managers will communicate their value, as well, especially when discussing pay. For example, when offering a promotion to an employee, a manager should consider all the potential benefits. What developmental opportunities are involved? Is there an increase hi status? Will the move mean additional interaction with key players? All of these, as well as any increase in tangible pay and benefits should be discussed.

Speaking of Pay with Confidence

Discussions regarding pay do not have to be awkward-they can be clear and productive if managers adhere to the basics outlined above. Rather than a taboo, pay can be addressed in an up-front manner if managers do their homework, get prepared and go into the discussion with the confidence that comes from knowledge. Pay discussions should deal with specifics. In preparing for the discussion, the manager must remember that pay is relative and nothing can be assumed about the employee’s response. The purpose of the particular aspect of pay being addressed is important, and the manager must be able to discuss the issue in the context of the organization’s pay philosophy.

Compensation is a hot potato for the Human Resource Department. The motivation level of the employees to great extent lies in monetary rewards. In the current state of affairs it is indispensable to restructure the pay models. Similar to changes bought about in the other departments the HR should also emphasize on restructuring the costs so as to bring the variable cost close to zilch. Smaller projects with fast paybacks would be more attractive than a big project with a long payback. The challenge for service providers and consultants would be to deliver the same amount of value to people with a smaller problem set. A satisfied employee is a productive employee and care should be taken that they are fairly paid for their worth in the organization. If managers follow these guidelines, their pay-related communication with employees will result in clarity and respect. In addition, they will avoid the misunderstand and resentment that results from avoiding this critical issue. If paid well can generate results for the organization, failed can create problems. The major challenges what manager’s face today is retention of the man power and the major cause of it is that they are paid better in the other organizations.

Functional overview and strategy for HRM:

These issues motivate a well thought out human resource management strategy, with the precision and detail of say a marketing strategy.

Failure in not having a carefully crafted human resources management strategy, can and probably will lead to failures in the business process itself.

This  set of resources  is  offered to promote thought,  stimulate discussion, diagnose the organizational environment and develop a sound human resource management strategy for your organization. We begin by looking at the seven distinguishable function human resource management provide to secure the achievement of the objective defined above.

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

Finally, some questions are posed in the form of a HRM systems diagnostic checklist for you to consider, which may prove helpful for you to think about when planning your development programs for the human resources in your organization, if they are truly “your most valuable asset.

HRM in the banks of Bangladesh:

HRM Practices in Bangladesh Banking Industry is the potential industry where the growth of a country depends a lot. In Bangladesh banking industry is also very influential. This industry is very big in Bangladesh and holds a lot of skilled employees. So Human Resource Management (HRM) is very much applicable as well as practiced in the banks of Bangladesh.

Building up efficiency in Banks with the help of HRM:

The crucial factors behind successful banking will be continuous and sustained build up of skills, knowledge, education and attitudes among people working in the banks, particularly the front line staff, working in the branches.

It is possible through professionalization, which is an internal part of HRM. Bank staff should be motivated and encouraged to practice professionalism for their personal growth and thus contribute to the organization’s growth.

Building efficiency in banking is, therefore largely dependent on the best selection process adopted by the HR department. There is imperative need to build up skills within an organization for the successful managing of available HR.

Banks have vast human resource specialized in multiple disciplines like technology, law, operations, foreign exchange, administration etc. the basic function of HR is to manage them efficiently for continuous success.

Major Activities of Personnel or Human Resource Department:

1. Manpower planning (determine and quantify future manpower requirements, linked to organization objectives, requires both external and internal information for planning, for short and long term view)
2. Recruitment, selection, interviewing
3. Induction (new employees with information to function effectively in the organization)
4. Training (maintaining and improving current job performance)
5. Re-training and counseling
6. Education and development (develop skills for future jobs)
7. Industrial relations
8. Remuneration and incentive

9. Pension and superannuation schemes
10. Health, safety, welfare
11. Gathering Statistical data both for internal and external use.
12. Job evaluation (assessment of the job to set proper salary, review grade structure ,etc,.)
13. Staff appraisal (determines the quality of staff, identify of potential staff for promotion, confirm suitability for promotion.)
14. Provides salaries and wages Budget information

HRM Process of Bangladesh Bank

Establishment:

Bangladesh Bank, the central bank as well as chief authority to regulate country’s monetary and financial system, was established in Dhaka as a body corporate vied the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from I6th December, 1971. Bangladesh Bank started functioning with all capital and liabilities of the then Dhaka branch of State Bank of Pakistan. At present it has got 9 branches and those are located at Motijheel, Khulna, Sadarghat, Bogra, Chittagong, Sylhet, Barisal, Rangpur and Rajshahi in Bangladesh and total number of staffs stood at 7240 as on end December 2009.

Core Functions

BB as the central bank of Bangladesh executes all the functions that a central bank traditionally performs as elsewhere in the world. The core functions of BB are briefly discussed as follows:

1. BB formulates and implements monetary policy aiming at stabilizing domestic monetary value and maintaining competitive external per value oft aka for fostering growth and development of country^rs productive resources in the best national interest.
2. BB formulates and implements intervention policies in the domestic money market and foreign exchange market. BB intervenes the money market with some policy instruments such as
3. Open market operation (treasury bills/bonds, redo, reverse repo auctions)
4. Variations in reserve ratios such as cash reserve requirements

(CRR) and statutory liquidity ratio (SLR)

Secondary trading

1. Discounting rate/ bank rate and
2. Moral suasion
3. BB monitors  and  supervises  scheduled banks  and non-bank financial instructions (NBFIs) that include off-site supervision and on-site supervision in order to enhance the safety, soundness, and stability of the banking system to ensure banking discipline, protect depositors’ interest    and    retain    confidence    in    the    banking    system.
4. BB holds sole responsibility of the management of international reserve representing aggregate of BB’s holding of gold, foreign exchange SDR     and     reserve     position     in     the      IMF;
5. BB, as the central bank of Bangladesh reserves sole responsibility to issue bank note
6. BB performs as a clearing house for the scheduled banks to clear and settle inter-bank payment arising through drawing cheque, drafts, bills, etc to one another.
7. BB acts as a banker to the government;
8. BB functions as a lender of the last resort for the government as well as for the country’s scheduled banks;
9. BB acts as an advisor to the government;
10. BB directs the growth expediting programs for the national interest.

Additionally, BB’s functions include some other promotional activities such as development of new instruments, guidelines for money and financial market participants, providing training to the banks and NBFIs, monitoring and encouraging corporate social responsibilities (CSR) executed by banks and NBFIs and so on. HRM process of Bangladesh Bank.

Functions:

Human Resources Department (HRD) manages centrally the manpower of the bank at work places through resourcing, placement, training, performance, discipline etc. It emphasizes on strategic and value added Human Resources (HR) activities involving the designing, updating and amending HR polices and procedures for continuous improvement.

To execute the above mentioned issues – HRUs functions are accomplished under the following divisions:

1. Planning and Resourcing Division.
2. Development and Benefit Division.
3. Performance and Reward Division.

Planning and Resourcing Division:

Planning, Promotion and Transfer Wing:

This wing is responsible for develop Annual Manpower Plan for Bangladesh Bank, conduct Job Analysis, prepare Job Descriptions, formulate promotion and transfer Policy. It works for creation/retrenchment of posts, promotion, rotation to ensure placement of right persons at right places and carry out the study of opening new office/department/division/cell/unit and abolition there of. Reviews cases of interdepartmental transfers as per Policies and approvals. This wing is also responsible for secondment and deportation of BB staff to other national and international institutions.

Recruitment and Outsourcing Wing:

This wing is responsible for attracting, selecting & recruiting the right people and other professionals from the market for Bangladesh Bank, State owned Banks and Financial Institutions through a rigorous induction process in order to ensure presence of quality professionals. Bangladesh Bank is proud of its highly professional, transparent objective approach in its recruitment and selection process. A series of selection procedures are applied before hiring employees. Normally the candidates go through the process of written test and interview. The interview is conducted by team comprising of internal as well as external Professional of the relevant area.

Bangladesh bank appoints the employees from 2 sources.

1. Internal source:   Bangladesh  bank  appoints   its  most  of the employees   from   internal   source   through   giving   promotions.
2. Outsourcing: Besides internal sources, Bangladesh bank collects its employees through outsourcing but Bangladesh bank doesn’t apply outsourcing for every task. At present, this bank appoints assistant director, general manager, deputy director of different divisions through outsourcing.To recruit employees by outsourcing, Bangladesh bank seeks help   from   different  recruiting   agency.   At  present, Bangladesh bank recruits employees with the help of a recruitment agency named ORNEC.

Agreement based appointment:

At present, Bangladesh bank follows new policy to recruit employees. It  recruits  most  of its  employees  based  on   agreement.   These employees who are recruited based on agreement are not permanently recruited.

Recruitment process:

1. Publish advertisement
2. Verify the applications
3. Written test
4. Viva-voce
5. Permission of the directors’ committee
6. Appoint the employees

Publish advertisement:

Recruitment and outsourcing wing gets the list of required employees from planning, promotion and transfer wing and take necessary steps to publish advertisement in newspaper.

Requirements:

To apply for the post of an officer, an applicant must have the qualifications stated below-

1. Honors passed but 4 year Honors is equivalent to masters.
2. First class in any of the two examinations out of three. Third class in any examination will not be granted.
3. In terms of GPA, minimum requirement is GPA 3.00 out of 4.00

Verify the applications:

After receiving the applications from the applicants, the applications are verified by proper authority.

Written test:

To take the written test, Bangladesh bank requests different institutions to submit tender. After completing necessary formalities, written test is taken.

Viva-voce:

Applicants who have passed the written test are asked to take part in viva-voce.

Permission of the directors¹ committee:

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

Appoint the employees:

After getting the permission from the directors’ committee, the selected applicants are finally appointed.

Planning, promotion and transfer wing:

Planning, promotion and transfer wing completes the following tasks-

Planning:

At first, planning, promotion and transfer wing makes a list of required employees for different divisions.

Promotion:

Employees of Bangladesh bank are promoted in two ways, that is-i) Based on seniority ii) Based on talent

Talent: Seniority =1:2, every year, employees are promoted on the basis of this ratio.

Talent of the employees is evaluated through ‘Personal Management System’. Employees are also promoted by evaluating educational qualification and working efficiency.

If an employee completes ‘Banking Diploma’, then he/she will get promoted. 3 point will be earned for completing the 1st part and another 3 point for the 2nd part. On the basis of these points, an employee will get promoted.

In terms of talent, if anyone scores 89 point, he/she will get promoted.

Transfer:

Planning, promotion and transfer wing decides how the employees will be transferred into different section and branches, after every 3 year, the employees are transferred into different section and branches.

Development and Benefit Division:

Benefits and Administration Wing:

This wing process cases related to LPR and retirement of employees from the Bank’s service. It is responsible to carry out all activities related to developing best market strategies regarding compensation and benefits like medical, welfare, recreation, accommodation, leave etc. As per Citizen Charter of Bangladesh Bank, focal point desk under this wing is responsible to consolidate and compile all of the grievances and complains of the public. An extended section under this   wing   is   responsible   for  providing   information   regarding Bangladesh Bank to the public as per the Right to Information Ordinance, 2008. This wing gives employees understated benefits-

1. Vacation: The  employees  can  enjoy 20  days  casual  leave.
2. Salary: This wing determines the employee’s salary according to the government announced pay scale,

For example:

Name of the post Salary assumed(tk) Joint director 22,250 Executive director 35,000 Deputy director 18,500 Assistant director 11,000 General manager 1,00,000 ( if recruited based on contact)

• Bonus: This wing determines various occasional bonuses for the employees. Generally employees are given bonus equal to their whole basic bonus,
• Benefits of loan: Bangladesh bank gives their employees various benefits of loan. Such as:
• House loan: House loans of different amounts are sanctioned for the employees according to their designation, for exampIe:Assistant director: 28 lakhJoint director: 32 lakh

For loans installment every month the equal amount of their house rent is deducted for their salary.Car loans: Car

ROLES OF HR DEPARTMENT:

Human resource department plays a very important role in this bank. They are as follows:

Getting the best employees:

– Work force planning

– Specifying jobs and roles

– Recruiting

a) Screening

b) Selecting new employees

– Out sourcing (having functions and services done by non-employees)

Training employees:

– Career development

– Employee orientation

– Leadership development

– Management development -Personal development

Paying employees:

– Salary

– Benefits and compensation

Ensuring compliance and regulations:

– Personnel records

– Employee laws

– Work ethics

Ensuring safe work environment:

– Employee assistance program

– Preventing violence in the work place

– Personal wellness

Sustaining high performance employees:

– Employee performance management

– Personal productivity

– Regular training session

Employment planning:

The decision as to who should be recruited is taken by the Human resource Panel, consisting of the Chief Executive Officer, Deputy Chief Executive Officer, consultant Human Resources and other Executives relevant to the position to be filled. Employment planning is the first and most vital responsibility of the whole HR department when it comes to employee recruitment. A recruitment planning is the guide map employment. It will further leads to the final selection and recruitment process.
Findings

1. The Bank can not practices proper HRM guideline. The HRM have some objectives but the bank can not follow all those objectives.
2. Training and development sector, there are on-the-job and off-the-job training techniques the bank follow some technique, but the bank can not follow arranges off-the-job techniques video and films show.
3. In the recruitment sector, Banking Sector of Bangladesh. Can not follow the proper guideline of HRM.
4. To   evaluate   employee’s   performance,   Banking   Sector   of Bangladesh  can  not  provide  their  employee’s  performance properly.
5. The orientation process, the bank can not follow of those process.
6. There are several ways of employee’s rewards, such as intrinsic vs. Extrinsic rewards, financial vs. non financial rewards, and performance- based vs. membership rewards, but the bank can not provides all of the system.

Recommendations

1. The Bank should practices proper HRM guideline. The purpose of Human Resource Management is to improve the productive contribution of people  to  he  organization  ways  that  are strategically, ethically, and socially responsible.
2. To get effective and efficient employee’s the Bank should arrange proper training and development programs.
3. To motivate the employee’s the bank should follow proper guideline of HRM.
4. The entire HR department should be will informed regarding their goals and objectives.
5. Job satisfaction and motivating instruments need for the bank.
6. Job description should be clarified and proper training should be important to   improve   the   performance   to   bottom   level management.

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

Conclusion:

Human resource department plays a vital role in operating a company. These banks have this department since it started operating in this country. This department is working effectively and efficiently and continuously putting some extra effort to be always up to date to keep up with the world. Practicing HR has a positive impact on the performance of the bank. Being a complete separate department to deal with some key responsibilities, they are more focused on what they are doing and for his reason their efficiency is improving day by day. So from my opinion companies which got no HR department should take immediate initiative to start practicing HR in their companies.