Internship Report

On
Employee Performance Appraisal
A Study on IFIC Bank Ltd.

Under the Supervision of

Dr. Swapan Kumar Bala
Professor,
Dept. of Accounting & Information Systems,
Faculty of Business Studies,
University of Dhaka


Prepared By

Mumtaheena Anwar
ID # 15 141, Section-B, Batch-15
th
, BBA
Department of AIS, University of Dhaka

February 25, 2013

Letter of Transmittal

February 25, 2013

Dr. Swapan Kumar Bala
Professor,
Department of Accounting & Information Systems,
Faculty of Business Studies,
University of Dhaka.

Subject: Submission of Internship Report.
Sir,
I have the honour to state that, I prepared this report titled Employee Performance Appraisal:
A Study on IFIC Bank Ltd. as a partial requirement of BBA degree under internship program
continuing from January 01 to February 17, 2013.
I have tried to put my best rigor in preparing this report and hope that the following pages will
live up to your provided instructions and expectation. Your feedback will help me further to
enrich my experience in preparing other course feasible studies.
In case of any further clarification where you require elaboration on any issue that seems to be
inadequately explained, I shall be glad to oblige.

Sincerely Yours,
Mumtaheena Anwar
ID # 15 141, Section-B,
Batch-15
th
, BBA,
Department of AIS,
Faculty of Business Studies
University of Dhaka.



Certificate of Supervisor


This is to certify that the extensive report titled Employee Performance
Appraisal : A Study on IFIC Bank Ltd. is prepared as partial requirements for
the award of the degree in Bachelors of Business Administration (BBA) from
the Department of Accounting Information Systems of University of Dhaka By
Mumtaheena Anwar, ID # 15141, Batch 15
th
under my direct supervision and
guidance.
No part of this report has been submitted for the award of any other degree/
diploma/fellowship or other similar designation.



Dr. Swapan Kumar Bala
Professor,
Dept. of Accounting & Information Systems,
Faculty of Business Studies,
University of Dhaka




Acknowledgement

It is my great pleasure to express my deepest gratitude and humble submission to the almighty
Allah but for whose support I would not be able to complete a huge task of preparing this
Internship Report within the scheduled time.
I would like to take the opportunity to express my gratitude to my Internship Advisor, Professor
Dr. Swapan Kumar Bala whose sincere direction, guidance and support helped me a lot in
writing this report.
I would like to thank my friends who provide me with vital suggestions for preparing this
Report.
My deepest appreciation and special thanks goes to the A.H.M Kamal, Vice President, HR dept.
of IFIC Bank Ltd. for extending his support and valuable advices in compiling this report. Lastly
I am thankful to the all the personnel of HR department of IFIC Bank, Head Office, Dhaka for
their sincere cooperation.



Mumtaheena Anwar





Abstract:

uman resource management is one of the major activities carried on by an organization.
With the advent of time the decision making authorities are realizing that to remain
competitive in this dynamic business world, a qualified, efficient workforce is required a
workforce that would not only carry out orders taken by superiors but can be equally efficient in
taking proper decision as the situation demands. To achieve this goal, role of the employee and
employee management process need to go through a great change. Most important of all is EPA
system how the employees are being evaluated for their assigned task. This report is intended
to provide an overview of EPA system with an extensive study on the EPA system of IFIC Bank.
IFIC Bank is one the first-generation commercial banks in Bangladesh. Incorporated in 1976,
this bank has now 108 branches all over the country, with 2 associates IFIC Securities and
Oman International Exchange. This report has shed light on the important features of this Bank
with special emphasize on vision, mission, core values, management structure, human resource
management.
EPA is the formal system of review and evaluation of individual or team task performance. IFIC
Bank has used ACR method for a long time for its EPA. But due to certain limitations of this
method, the Bank has very recently shifted to MBO method. This method is adopted with the
intention to get certain benefits. This method ensures employee participation in every step of
EPA. It provides employee motivation by inflicting on them confidence, belongingness and self
worth.
EPA process using MBO method starts with the setting goal in an interactive way and through
certain distinctive well-defined steps reaches to the end step of Approval by supreme authority.
Employee performance is evaluated on the basis of certain predefined factors and with
comparison to target set.
Implementation of MBO method has some weaknesses that can hider the effectiveness of the
method like lack of qualified personnel, lack of proper training and such. Through this report I
tried to suggest some policy recommendations that might be helpful to cope with the problem
faced.


H

List of Acronyms:

EPA Employee Performance Appraisal
IFIC Bank International Finance, Investment & Commerce
Bank
MBO Management by Operation
ACR Annual Confidential Report
HR Human Resource
BBA Bachelor of Business Administration
CEO Chief Executive Officer
MD Managing Director
DMD Deputy Managing Director
BAMLCO Branch Anti-Money Laundering Compliance
ATM Automated Teller Machine









Table of Contents:

Title Page no.
1.0 Introduction
1.1 Background of the study 02
1.2 Statement of the Problem 02
1.3 Objective of the Study 02
1.4 Rationale of the Study 03
1.5 Limitation of the study 03
2.0 Methodology

2.1 Type of Study 05
2.2 Data Collection Procedure 05
2.3 Data Analysis Technique 06
3.0 Overview of IFIC Bank
3.1 Background of IFIC Bank Ltd. 08
3.2 Vision of IFIC Bank Ltd. 08
3.3 Mission of IFIC Bank Ltd. 08
3.4 Goals & Objectives of IFIC Bank Ltd. 09
3.5 Core Values of IFIC Bank Ltd. 09
3.6 Management Structure 10
3.7 Human Resource 13
3.8 Branches & Associates 13
3.9 Technology 14
3.10 Milestones of IFIC Bank 14




4.0 Performance Appraisal :A Conceptual Study

4.1 Definition 17
4.2 Objective of Performance Appraisal 17
4.3 Benefits Of Appraisal 17
4.4 Who conducts the appraisal and When 18
4.5 Data Collection Method 18
4.6 Process of Performance Appraisal 20
4.7 Performance Appraisal Methods 21
5.0 Findings & Analysis
5.1 Authoritative Body for EPA in IFIC Bank Ltd. 25
5.2 EPA Review Committee in IFIC Bank Ltd. 25
5.3 Previous EPA Method-Annual Confidential Report (ACR): 25
5.4 Limitations of ACR 26
5.5 Current Method- MBO Method 27
5.6 Advantages of MBO Method 27
5.7 EPA Process of IFIC Bank Ltd. 28
5.8 EPA Evaluation Process of IFIC Bank Ltd. 43
5.9 Variations in Appraisal Process in IFIC Bank Ltd 46
5.10 Automation in EPA system in IFIC Bank Ltd. 47
5.11 Weaknesses of the existing EPA 48
6.0 Conclusion & Recommendations
6.1 Summary of Major Findings 50
6.2 Policy Recommendations for Improvement of EPA of the Bank 51
6.3 Concluding Remarks 52
References