INTERNSHIP REPORT

ON
Compensation of Jamuna Bank Limited

Prepared for:
SUJON KANTI BISWAS
Chairman
Department of Management
Faculty of Business Studies
Premier University, Chittagong

Prepared by:
Falguni Barua
ID-1702520802649

Department of Management

Faculty of Business Studies

25th Batch, MBA (1year)

Premier University, Chittagong.

Date of Submission: August 28, 2018

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 Letter of Transmittal
August 28,2018
To
Mr. Sujon Kanti Biswas
Chairman
Premier University, Chittagong.
Subject: Submission of Internship report on Compensation of Jamuna Bank.

Dear Sir,
I am here by submitting my Internship Report, which is a part of the MBA program curriculum. It is a
great achievement to work under your active and co-operative supervision. This report titled,
“Compensation Management of Jamuna Bank”. This project gave me the opportunity to have
practical experience of banking operation, helped to learn about the culture and internal operations of
a bank.

I shall be highly obliged if you are kind enough to receive this term paper and provide your valuable
judgment about it. However, I have gathered all the facts that I could within this short period and
have tried my level best to exert all the things as much presentable as possible It would be my
immense pleasure if you find this term paper useful and informative to have an apparent perspective
on the issue.

Sincerely Yours

Falguni Barua

…………………………………….
ID: 1702520802649

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 Acknowledgement

I would like to express my deep gratitude to all those who have been helpful in the preparation of this
internship report. It certainly would not have been possible without the help of many people and I
would like to acknowledge my pleasure to all those who had helped me during this entire process.
At the very beginning I would like to express my deepest gratitude to almighty for giving me the
strength and the composure to finish the task. Internship report is an essential part of the MBA
program and to complete the process I have worked in Jamuna Bank Limited, Khatunganj Branch.
It is a great pleasure to prepare internship report on Compensation of Jamuna Bank Ltd. On this
manner I would like to express my deepest gratitude to my honorable academic supervisor, Sujon
Kanti Biswas, Chairman, Premier University for permitted and guiding me to prepare the report.
I want to thank my organizational supervisor Mr. Hasan Mohammad Masud, First Asst. Vice
President for permitting me to work at Jamuna Bank Limited, Khatunganj.
I would like to express my thanks Md Muksud Alam ,Executive Officer of Jamuna Bank Ltd for
providing valuable information, especially, Mr. Rasadul Hasan, First Executive Officer and
Mr.Partha Pratim Bhattacharjee, Assistant Officer of Jamuna Bank Limited, Khatunganj Branch.

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 Executive Summary

Jamuna Bank Limited is bank of new generation. It is committed to provide high quality financial
services/products to contribute to the growth of GDP of the country through stimulating trade and
commerce, accelerating the pace of industrialization, boosting up export, creating employment
opportunity for the educated youth, poverty alleviation, raising standard of living of limited income
group and overall sustainable socio-economic development of the country.

Jamuna Bank Limited is a highly capitalized bank with an Authorized Capital and Paid-up Capital of
Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to
429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2005.
Currently the Bank has 35 (Thirty Five) branches 14 in Dhaka, 6 in Chittagong, 2 in Gazipur, 3 in
Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in Shirajganj, 1 in Rajshahi and 1 in
Narayanganj (including Nine Rural Branches).

Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its
corporate client groups combining trade, treasury, investment and transactional banking activities in
one package. Whether it is project finance, term loan, import or export deal, a working capital
requirement or a forward cover for a foreign currency transaction, our Corporate Banking Managers
will offer you the accurate solution. Our corporate Banking specialists will render high class service
for speedy approvals and efficient processing to satisfy customer needs.

For a banking operation credit risk management is one of the most important factor as well as general
banking & foreign exchange department. Jamuna Bank Ltd. offers credit to almost all sectors of
commercial activities having productive purpose.

The main focus of Jamuna Bank Ltd. Credit Line/Program is financing business, trade and industrial
activities through an effective delivery system. Credit is also offered to major thrust sectors, as
earmarked by the govt., at a reduced interest rate to develop frontier industries. Credit facilities are
offered to individuals including housewives, businessmen, small and big business houses, traders,
manufactures, corporate bodies, etc. It is extended as per guidelines of Bangladesh Bank (Central
Bank of Bangladesh) and operational procedures of the Bank.

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The Bank is being managed and operated by a group of highly educated and professional team with
diversified experience in finance and banking. The Management of the bank constantly focuses on
understanding and anticipating customers’ needs. The scenario of banking business is changing day
by day, so the bank’s responsibility is to device strategy and new products to cope with the changing
environment. Jamuna Bank Ltd. has already achieved tremendous progress within only two years.
The bank has already ranked as one of the quality service providers & is known for its reputation.

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 Table of Contents

Letter of Transmittal 02
Acknowledgement 03
Executive Summary 04
Table of Contents 6-7

Chapter- 01 Introduction 8-11

Introduction 9

Background of the report: 9

Objective 9

Methodology 10

Limitation 10-11

Chapter 02 12-19
Overview of Jamuna Bank Limited
JBL CORPORATE CULTURE 15
DEPOSIT 17
Procedures for Opening Accounts. 18
Organogram Of Jamuna Bank Limited 19

Chapter 3 Literature Review 20-28

Compensation 21

Types of Compensation 22

Some Indirect Compensation 23-28

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 Chapter 4 29-38
Compensation Practices of Jamuna
Bank Limited

Salary structure 31

Exclusion from Employee Security Benefit 35

Jamuna Bank Employee’s Provident Fund 35

Chapter 5 39-41
Analysis and Findings
Swot Analysis of Jauna Bank Limited 40
Findings Of Jamuna Bank 41

Chapter 6 42-45
Recommendations and Conclusion
Recommendation: 43

Conclution 44

Bibilography 45

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Chapter- 01
Introduction

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Introduction
Bank is very old institution that is contributing toward the development of any economy and is treated
as an important service industry in the modern world. Economic history shows that development has
started everywhere with the banking system and its contribution towards financial development of a
country is the highest in the initial stage. Modern banks play an important part in promoting economic
development of a country.

Bank provides necessary funds for executing various programs in the process of economic
development .They collect savings from large masses of people scattered throughout the country,
which in the absence of banks would have remained ideal and unproductive, these scattered amounts
are collected, pooled together and made available to commerce and industry for meeting the financial
requirement.

Bank plays a vital role in the economy by providing means of payment and mobilizing resources.
Bank is the most important financial institution in the economic development of a country depends on
the development of banking sector. Today’s modern banks are not only providing traditional banking
but also expanding the many financial services. In today’s world the life of the people directly are
within the arena of banking whether conventional or Islamic banking is not a newer concept in
Bangladesh as it has started its operation since 1983, very few people are aware about its operation.
But things are changing. Islamic banking is also getting popularity in the country.

Background of the report:

Internship program essential for every student, especially for the students of BusinesAdministration,
which helps them to know the real life situation, for this reason a student takes the internship program
at the last stage of the master’s degree, to launch a career with some practical experience. Against this
backdrop, I have competed my two months internship in the Jamuna Bank Ltd, Khatunganj Branch,
Chittagong , which has helped me a lot to understand the real life situation of banking business.

Objective:
To identify the compensation structure of Jamuna Bank.
To identify the existing pay scale.
To identify the satisfaction level of employee on compensation.

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Methodology:

Primary data sources:

The following methodology will be followed for the study based on observation and interpretation.
Data sources are scheduled on an informal discussion with officials, company website and
observation while working in different desks.

Secondary data sources:

Secondary data are data collected for some purpose other than the main facts. Secondary data are
quick source of background information. I also collected information from secondary data sources.
The sources are:

Internet
Financial statements
Interview with the HR (Human Resource) personnel.
Previous reports on HR of Jamuna Bank Limited.

Limitation:
1. Insufficient information is found from the annual report, company’s website regarding with
my topic.
2. Important publications, prospectus, article etc are not available in the brunch related my topic
of the project.
3. The bank staffs are restricted to disclose about the compensation package
4. Bank is a very busy pecuniary institution; therefore it would be harsh and complicated for
them to give me sufficient time
5. Constant and continuous changes in HR policies is the most problematic issue for me, since
being updated with the most recent decision seemed to be very critical as they were more
confidential than they used to be.
6. Only my experience of three months is not that much enough to describe the policies in detail
since they have more than 14 hundred people working in the organization. Knowing policies
and benefits for different level and band seems to be very tough while I was analyzing the

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 issues within such a short period of time.
7. For recent political issues they have changed so mane HR policies and the minimized their
talent acquisition activities and that actually is not the usual scenario for the company which
unfortunately I had to take into consideration.
8. It was tough to manage the tine to complete the report due to time constrains of the
Interviewees.
9. The branch is too much dependable on Head Office because whenever I asked any question
they were confused and then take information in main branch.

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 Chapter 02
Overview of Jamuna Bank Limited

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History:
Jamuna Bank Limited is a private commercial bank in Bangladesh. It was established on June 3,
2001. Jamuna Bank has now in total of 102 branches as on March, 2016. Jamuna Bank Limited (JBL)
is a Banking Company registered under the Companies Act, 1994 of Bangladesh with its Head Office
currently at Hadi Mansion, 2, Dilkusha, Chini Shilpo Bhaban (2nd,3rd & 8th Floor) C/A, Dhaka-1000,
and Bangladesh. The Bank started its operation from 3 June 2001.

The Bank provides all types of support to trade, commerce, industry and overall business of the
country. JBL's finances are also available for the entrepreneurs to set up new ventures and BMRE of
existing industrial units. Jamuna Bank Ltd., the only Bengali named 3rd generation private
commercial bank, was established by a group of local entrepreneurs who are in the field of trade,
commerce, industry and business of the country.

The Bank offers both conventional and Islamic banking through designated branches. The Bank is
being managed and operated by a team with diversified experience in finance and banking.

At present the Bank has real-time Online banking branches (of both Urban and Rural areas) network
throughout the country having smart IT-backbone. Besides traditional delivery points the bank has
ATMs of its own, sharing with other partner banks and consortium throughout the country.

Product/ service offerings:

JBL is a highly capitalized new generation bank started its operation with an authorized capital of
TK. 390 million as of December 2006 Paid-up capital of Tk. 1072.50 million. As of June 30, 2007,
their paid up capital is Tk. 1,072,500.00, share premium is Tk. 85,800,000.00, statutory reserve is Tk.
249,667,430.00 and profit is Tk. 154,504,076.00.According to December 30,2009 their paid up
capital is tk. 3,055,000.00, share premium is tk.95,600,000, statutory reserve is 45,990,500.00 and
profit is tk. 300,779,500.00. Their profit reached to 350,100,000 on 30th October.

JBL undertakes all the types of banking transactions to support the development of trade and
commerce in the country. JBL’s services are also available for the entrepreneurs to set up new
ventures and BMRE of industrial units. The bank gives special emphasis on Export, Import, Trade
Finance, SME Finance, Retail Credit and Finance to the Women Entrepreneur. Jamuna Bank Ltd. the

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only Bengali named new generation private commercial bank was established by a group of winning
local entrepreneurs conceiving an idea of creating a model banking institution with different outlook
to offer the valued customers, a comprehensive range of financial services and innovative products
for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of
trade, commerce and idustries.

The scenario of banking business is changing day by day, so the Bank’s responsibility is to device
strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already
achieved tremendous progress within only nine years. The bank has already ranked at top of the
quality service providers & is known for its reputation.

Jamuna Bank offers different types of Corporate and Personal Banking Services involving all
segments of the society within the purview of rules and regulations laid down by the Central Bank
and other regulatory authorities. As per the provisions of Bangladesh Bank license, the Bank has
offered initially its shares to public by Pre – IPO and subsequently sold shares to the public through
IPO in the year 2004. The shares of the Bank are listed with both Dhaka Stock Exchange Ltd. &
Chittagong Stock Exchange Ltd. JBL has established wide corresponded banking relationship with
local and foreign banks in order to provide services to its clients in respect of international trade. JBL
is attempt to covering major trade and financial interest home and abroad from the starting time stage.

VISION
To become a leading banking institution and to play a pivotal role in the development of the country.

MISSION
The Bank is committed to satisfying diverse needs of its customers through an collection of products
at a competitive price by using appropriate technology and providing timely service so that a
sustainable growth, reasonable return and contribution to the development of the country can be
ensured with a motivated and professional work-force.

CORPORATE SLOGAN

Your Partner for Growth.

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The sponsors of Jamuna Bank Limited are successful leading entrepreneurs of the country having
stakes in different segments of the national economy. They are eminent industrialist and businessman
having wide business reputation both at home and abroad.

MANAGEMENT

JBL is managed by highly professional people. The present Managing Director of the Bank is a
forward looking senior banker having decades of experience and multi discipline of knowledge to his
credit both at home and abroad. He is supported by an educated and skilled professional team with
diversified experience in finance and banking. The management of the bank constantly focuses on the
understanding and anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has
already achieved tremendous progress with in a short period of its operation. The Bank is already
ranked as one of the quality service providers and known for its reputation.

JBL CORPORATE CULTURE

Employees of JBL share certain common values, which helps to create a JBL culture.

 The client comes first.

 Search for professional excellence.
 Openness to new ideas & new methods to encourage creativity.
 Quick decision-making.
 Flexibility and prompt response.
 A sense of professional ethics.

 OBJECTIVES

 To earn and maintain CAMEL rating strong.

 To establish relationship banking and service quality through development of Strategic
Marketing Plan.

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 To remain one of the best bank in Bangladesh in terms of profitability and asset quality.
 To introduce fully automated systems through integration of Information Technology.
 To ensure an adequate rate of return on investment.
 To keep risk position at an acceptable range (including any off balance sheet risks)
 To maintain adequate liquidity to meet maturity obligations and commitments.
 To maintain a healthy growth of business with desired image.
 To maintain adequate control systems and transparency in procedures.
 To develop and retain a quality work force through an effective Human Resources
Management System.
 To ensue optimum utilization of all available resources.
 To pursue an effective system of Management by ensuring compliance to ethical norms,
transparency and accountability at all levels.

 STRATEGIES

 To manage and operate the bank in the most efficient manner to enhance financial
performance and to control cost of fund.
 To strive for customer satisfaction through quality control and delivery of timely services.
 To identify customers credits and other banking needs and monitor their perception towards
our performance in meeting those requirements.
 To revive and update policies, procedures and practices to enhance the ability to extend better
services to customers.
 To train and develop all employees and provide them adequate resources so that customers’
needs can be responsibly addressed.
 To promote organizational effectiveness by openly communicating company plans, policies,
practices and procedures to all employees in a timely fashion.
 To cultivate a working environment that fosters positive motivation for improved
performance.
 To diversify portfolio both in the retail and wholesale market.

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  To increase direct contact with customers in order to cultivate a closer relationship between
the bank and its customers.

Schemes offered by Jamuna Bank Limited

Monthly Benefit Scheme

Monthly Saving Scheme

Education Saving Scheme

Marriage Deposit Scheme

Double Growth Deposit Scheme

Triple Growth Saving Scheme

Lakhpoti Deposit Scheme

Kotipati Deposit Scheme

Millionaire Deposit Scheme

DEPOSITS.

Types of Deposit Accounts:

The branches may accept deposits from the public in the following accounts:

a. Current Deposits

b. Savings Bank Deposits

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c. Fixed Deposits (Term Deposit)

d. Short Term Deposits

e. Monthly Term Deposits

f. Any other deposits as may be approved/ advised by Head Office.

Procedures for Opening Accounts.

Opening account with a bank is the way of creating a banker customer relationship. In other words, it
is a contract between banker and customer. With this contract, bankers enter into certain obligations
and responsibilities.

Proper introduction serves as a precaution against fraud and forgeries and safeguard against
inadvertent overdraft to bank. Obtaining proper introduction may absolve the banker from the charges
of negligence for conversion. So, while opening a new account, emphasis would be given without
exception to introductory reference and inquiry. The following instruction to be followed while
opening account: –

I. Introduction of Account to be obtained from a respectable client acceptable to bank.

II. The introduction shall be obtained in writing in the respective column of Account opening
form.

III. For opening savings bank account of individual either singly or jointly, passports and identity
cards may be accepted for introduction, but subsequently proper introduction may be obtained.

IV. Introduction of Current Account by members of the staff may be allowed but shall be
discouraged as far as possible.

V. Current Account shall preferably be introduced by another Current Account holder

acceptable to bank.

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VI. Introduction of Account holder of other branch may be accepted with caution. In that case the
introducer’s signature must be verified by authorized officer of that branch and authenticated by a
forwarding letter.

VII. Photographs of account holder must be attested by the introducer.

VIII. Letter of thanks be issued to introducer in Bank’s standard specimen.

Organogram Of Jamuna Bank Limited

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 Chapter 3
Literature Review

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Compensation

Compensation is a systematic approach to provide extrinsic and intrinsic benefits, monetary and non
monetary benefits to the employees. It is also considered as measurement how employees are being
treated in an organization. Each and every organization has their own compensation planning where
they specify what facilities are going to provide their employees, how it should be provided and based
on what category. Having the theoretical knowledge of compensation I feel interest to know about the
real scenario of compensation practices and how it is being implemented in an organization of our
country. Compensation is the total amount of the monetary and non-monetary pay provided to an
employee by an employer in return for work performed as required. It is based on market research
about the worth of similar jobs in the marketplace, employee contributions and accomplishments, the
availability of employees with like skills in the marketplace, the desire of the employer to attract and
retain a particular employee for the value they are perceived to add to the employment relationship,
and the profitability of the company or the funds available in a non-profit or public sector setting, and
thus, the ability of an employer to pay market-rate compensation.

Compensation also includes payments such as bonuses, profit sharing, overtime pay, recognition
rewards and sales commission. It can also include non-monetary perks such as a company-paid car,
stock options in certain instances, company-paid housing, and other nonmonetary, but taxable income
items. Compensation management is a general policy, designed to help an organization maximize the
returns on available talent. The ultimate goal is to reward the right people to the greatest extent for the
most relevant reasons.

I have selected Meghna Petroleum Limited to know about their compensation system and employee
satisfaction. The human resources policy and procedure manual of Meghna Petroleum provides the
policies and procedures for managing and developing staffs. It also provides the guideline Meghna
Petroleum Limited will use to administer these policies with the correct procedure to follow. These
policies and procedures are applied to the employees of Meghna Petroleum Limited as well as to the
employees of all subsidiaries of this company.

This chapter provides a review of pertinent literature in relation to the management of compensation
and how it influences employee performance. It will review works by other researchers on how
managing the components of compensation influences performance. We will look at various

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definitions of compensation and performance and how performance can be measured or has been
proposed to be measured by some researchers. In this review the researcher seeks to explore various
works related to the study area on the relationship between compensation packages and their
management and attempt to establish a relationship between that and the work outputs of employees.

Types of Compensation

According to Dessler, Compensation can be divided into 2 forms- Direct and Indirect compensation
which are discussed below in detail.

Direct Compensation

Direct compensation is usually limited to the direct cash benefits that the employees receive on
monthly, bi-monthly or weekly basis for the services they render as employees of a particular
organization. It could also be in the form of stock bonus compensation, where employees of the
organization are given the opportunity to own shares in the organization they work for and at the end
of every year they have the opportunity again to gain some divided in the form of equity on

their shares. This is also referred to as Executive stock options (ESO).

Indirect Compensation

Dessler (2011) refers to Indirect Compensation as the indirect financial and nonfinancial payments
employees receive for continuing their employment with the company which are an important part of
every employee’s compensation. Other terminology such as fringe benefits, employee services,
supplementary compensation and supplementary pay are used. According to Armstrong (2009)
Indirect Compensation or Employee benefits are elements of remuneration given in addition to the
various forms of cash pay. They also include items that are not strictly

remuneration such as annual holidays. Management uses it ostensibly to facilitate its recruitment
effort or influence the potential of employees coming to work for a company, influence their stay or

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create greater commitment, raise morale, reduce absenteeism in general and improve the strength of
the organization by instituting a comprehensive programme in this area.

Indirect or Supplementary Compensation involves 'fringe benefits' offered through several employee
services and benefits such as housing, subsidized food, medical aid, crèche and so on. It involves
rewards provided by organizations to employees for their membership, attendance or participation in
the organization. Because of the increasing costs of fringe benefits, some people also label them as
'hidden payroll. Benefits currently account for almost 40 per cent of the total compensation costs for
each employee. The basic purpose of fringe benefits or supplementary compensation is to attract and
maintain efficient human resources and to motivate them. From the above literature, it can however
be deduced that most researchers who have considered work in this field agree on the definition of the
term compensation and also agree on the types of compensation being considered by this review.
Some have also classified compensation into fixed and variable compensations. These are term that
relate to the concept of direct and indirect compensation; also sometimes referred to as primary and
secondary compensation.

Some Indirect Compensation

a. Paid Holidays:

These comprise holidays such as Christmas Day, New Year’s Day, Independence Day, Labour Day,
etc. One relatively new concept is the floating holiday, which is observed at the discretion of the
employee or the employer. Another relatively new concept is referred to as personal time-off or
personal days. Under this concept, organizations give employees a certain number of days with pay to
attend to personal affairs. Normally these days can be taken at the employee’s discretion. Casual
leave days can also be considered in this category as paid holidays by at the discretion of the
employer and the request of the employee.

b. Workers’ Compensation:

This is meant to protect employees from loss of income and to cover extra expenses associated with
job-related injuries or illness. The laws generally provides for replacement of lost income, medical
expenses, rehabilitation of some sort, death benefits to survivors, and lump-sum disability payments.

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c. Social Security:

This is a federally administered insurance system. According to law, both employer and employee
must pay into the system, and a certain percentage of the employee’s salary is paid up to a maximum
limit. How much is paid by employer and employee is calculated on the average monthly wage
(weighted toward the later years). It is provided mainly to give financial security to employees during
their retirement.

d. Retirement Plans:

Retirement and pension plans, which provide a source of income to people who have retired,
represent money paid for past services. Private plans can be funded entirely by the organization or
jointly by the organization and the employee during the time of employment. One popular form of
pension plan is the defined-benefit plan. Under this, the employer pledges to provide a benefit
determined by a definite formula at the employee’s retirement date. The other major type of
retirement plan is the defined –contribution plan, which calls for a fixed or known annual contribution
instead of a known benefit.

e. Paid Vacations:

Typically, an employee must meet a certain length-of –service requirement before becoming eligible
for paid vacation. Also, the time allowed for paid vacations generally depends on the employee’s
length of service. Unlike holiday policies that usually affect everyone in the same manner, vacation
policies may differ among categories of employees. Most organizations allow

employees to take vacation by the day or week but not in units of less than a day. Organizations may
offer a wide range of additional benefits, including food services, exercise facilities, health and first-
aid services, financial and legal advice, and purchase discounts in addition to the major benefits
previously discussed to motivate employees.

Compensation has some important objectives.

To achieve, these objectives a well conceived compensation scheme or plan may be established.
These objectives are mentioned in the following point.

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To be legal:

It must get approval from the govt. or top management in the organization.

To be adequate:

Compensation must be sufficient so that needs of the employees are fulfilled substantially.

To be Motivational:

Compensation must increase the level of motivation and job satisfaction of the employees.
To be equitable:

Compensation policy should be declared in such a way so that no discrimination can be observed.
To provide security:

Employees must have guarantee of getting wages or compensation regularly without any break.

To be cost benefit effective:

The organization must make a balance between cost for giving compensation and benefits to be
accrued from the employees

Impact of Indirect Compensation on Employee Performance

Indirect compensation help organizations to attract and retain highly competitive employees which
are seen as strategic resources in getting competitive advantage, One can expect that through benefits
offerings the overall attractiveness of organization can be increased and the loyalty and satisfaction of
that employee will also be increased. As a result, it will increase employee motivation and
performance.

In simple, higher indirect compensation may enhance organizational performance by attracting and
retaining competitive labor. In another words, indirect compensation play a moderating role and
increase the positive impact of labor input on an organization’s output with the retention and
recruitment of high quality employees. According to (Bond & Galinsky, 2006) The fact that many
small organization do, that give some, if not all, of these supplementary benefits to the lower-wage
employees, it demonstrate that they view the investments valuable for purposes of enhancing
recruitment, performance, and retention. It indicates how important it is for organizations to give their
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employees with appropriate fringe benefits (in addition to salaries and wages) and make sure that the
elements of their Conditions of Service are properly implemented. This will increase employee
morale and make the quality of goods and services better at low prices and also increase profit.

According to (De Nissi & Griffin, 2001) Performance is an economic measure of effectiveness which
summarizes and indicates the amount of the outcome produced by an individual, organization,
industry or economic system comparative to the amount of the inputs used to produce them.
Organizations all around the world have identified the importance of performance to compete and
also to survive in the market. Moreover, actual performance improvement takes an important
comprehensive approach which relies on the employees, it is important to provide them with the
essential supplementary benefits to encourage them to perform their best.

Some Direct Benefits:

Health and Dental benefits:

Health and dental benefits are considered the foundation of any benefit program design. When
considering the root issues of all absenteeism from the workplace, most employers agree that health
or dental related illness is cited most as the cause. While many have not thought of dental coverage as
being a key attraction point, a number of medical reports have been published recently, that indicate
that many of our common virus and illnesses are actually related to poor dental health. An
organization’s ability to be creative, flexible and generous in providing health and dental coverage
can be a key to attracting and retaining top performers as part of the total compensation package.

Life and AD:

Most employers design their plans with a provision to protect the employee and/or their family in the
event of Accidental Death or Dismemberment (AD&D). Employers often provide basic coverage as a
factor of the employee’s salary, (example: 2x the employee’s salary in the event of death or total
paralysis) with additional coverage available should the employee chose to purchase it. Each
employee benefit plan should include a chart that identifies what coverage is available and the
associated cost.

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Long-term Disability:

Long-term disability is an income-replacement provision. This is one provision that cannot be

purchased through a spousal plan. Employees are asked to pay the total cost of the premiums in order
to receive a tax-free payment should they be unable to work. Long-term disability coverage is applied
for when an employee is unable to complete a certain percentage of the essential duties of their role
due to illness on an ongoing basis. The structure of each plan can differ slightly, so understanding
what you are trying to achieve with this program including elimination periods and termination
options, is critical at the outset.

Employee Assistant Plan:

An EAP, or employee assistance program, is a confidential, short term, counseling service for
employees with personal problems that affect their work performance. Studies have shown that
providing confidential qualified counseling and support can reduce the stress and conflict felt by the
employee, which in-turn can reduce absenteeism and ultimately turnover.

Retirement Plan:

A retirement plan or a pension is an arrangement by an employer to provide their employees with an

income when they are no longer earning a regular income from working. Retirement plans may be set
up by in a variety of ways but typically will have a form of a guaranteed payment. Often retirement
plans require both the employer and employee to contribute money into a fund while employed so
that they will receive benefits upon retirement. Pension plans are considered a form of delayed
income.

Pension Plan:

Pension plans are usually classified as either defined benefit or defined contribution according to
how the payments are determined.

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 A defined benefit plan guarantees a predictable monthly payment at retirement, calculated by
using an established formula with some combination of the employee’s salary, years of service
and/or age.
 A defined contribution plan will provide a payment/payout at retirement that will be determined
by the amount of money contributed during the life of the plan and the performance of the stock
or investments used.

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 Chapter 4

Compensation Practices of
Jamuna Bank Limited

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The Bank is committed to follow a fair, competitive and flexible remuneration policy. The Board is
the final authority for approval of this policy and will amend and review the policy on
recommendation of the Managing Director / Management Committee periodically.

The remuneration policy of the bank will cover all persons engaged in permanent service of the bank.

The different job grades at Jamuna Bank are as follows:

Managing Director

Associate Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant and Vice President

Senior Executive Officer

Executive Officer

First Executive Officer

Officer

First Officer

Assistant Officer

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Salary structure:

Managing Director TK 600000 – TK 800000

Associate Managing Director TK 600000 – TK 700000

Deputy Managing Director TK 500000

Senior Executive Vice President TK 300000

Executive Vice President TK 250000

Senior Vice President TK 200000-TK 220000

Vice President TK150000 –TK 180000

Senior Assistant Vice President TK130000- TK 150000

Assistant Vice President TK 100000 – TK 120000

First Assistant Vice President TK 85000 – TK 90000

Senior Executive Officer TK 75000 – TK 80000

Executive Officer TK 65000- TK 70000

First Executive Officer TK 55000- TK 60000

Officer TK 30000 – TK 35000

First Officer TK 25000-TK 30000

Assistant Officer TK 20000 – TK 25000

As per as 2016 pay scale

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Salaries are confidential between the employees concerned and the Management. The salary ranges
for these job grades are reviewed from time to time.

HR Temporary & outsource staff do not have any assigned job grade. The contracts get a
consolidated payment per month and there are no other entitlements applicable except commission
based on job criteria.

Basic Pay

Basic Salary Ranges (BSRs) is commensurate with the job grades and is determined by the Board on
the recommendation of the Managing Director. The Board reviews the BSR at least once every
two/three years.

Annual increment:

All confirmed staffs get increment each and every year based on theirlevel.

Advance payment:

If someone goes outside of office and there is no chance of coming back within that month he/she
will be given advance payment salary

Festival Bonus

All regular and confirmed employees get two bonuses each year. One in Eid-Ul-Fitr and another
during Eid-Ul-Azha only for Muslims and employees of different religion gets that bonus during their
respective religious festival.

Other than the above benefit there is a Provident Fund System, a Gratuity System, Insurance Policy,
Employee Security and Welfare Fund maintained by the Bank.

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Regular and confirmed employees can apply for House Building Loan and Car Loan. Allowances are
also available to only regular and confirmed employees but Car Allowances are only for the grades
above Assistant Vice President (AVP).

There is an annual increment for all regular and confirmed employees on their joining anniversary.

Festival Bonus will be paid to all confirmed officers/staff at one month basic salary which will be
reimbursed twice in each calendar year. All confirmed employees would get one bonus during Eid-ul-
Fitre and another one for Muslims during Eid-ul-Azha and for others based on their respective
religious festival.

Non-confirmed employees will be entitled to get Festival bonus as pro rata basis depending on his/her
joining Date.

HR Contract & Outsource Staff would get 1 bonus, which is 50% of this gross salary

Pay for time not worked:

Weekly Holiday:

Two holidays (Friday & Saturday) per week for the employees of JAMUNA Bank. Security guards
(male) can enjoy one holiday for every 15 working days. That means they get 2 holidays in a month..

Annual Holiday:

According to the published list of leave by main office the annual leave plan for the employees of
JAMUNA Bank is decided. These holidays are basically the government holidays. It is determined
based on government holidays

Sick Leave:

14 days sick leave with pay is provided to the staffs of JAMUNA each and every year.

Maternity Leave:

JAMUNA provides 6 months with pay maternity leave to its female staffs. Extra 6 months non paid
maternity leave is also given to the staffs of JBL

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Paternity Leave:

7 days paternity leave is given to the all confirmed staffs of JBL at a stretch. Non confirmed staffs are
not eligible to get this leave.

Accidental Leave:

Every employee can take this leave due to accident in work place, in case of hospitalized because of
accident or surgery issues. JBL gives 21 days with pay accidental leave for accidental or surgical
issue to its staff. If required more leave, staffs of JBL can take more days leave but that will be given
as without pay. For certain cases authority provides 21 day’s extra leave.

Compulsory leave:

Those who work five days in a week they get 5 days compulsory leave in a year at a stretch.

Extra ordinary leave:

It is without pay leave. To get this leave staffs must work for JBL at least 5 years. Those who work 5
years they are given 1 year extra ordinary leave at a stretch. Those who work 10 years or more they
are given 2 years extra ordinary leave at a stretch.

Gratuity:

The Gratuity Fund is a terminal benefit that an employee receives at the time of
retirement/resignation.

Eligibility:

Regular confirmed employees who have completed at least 5 Years continuous service are entitled to
receive Gratuity Benefit.

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Security Fund:

The objective of the fund is to provide predetermined monetary benefit against death and permanent
disability of regular confirmed staff to his/her Dependent/Heir/Nominee by the Bank. All Regular
Confirmed employees are eligible to avail this benefit. The fund for this benefit is created solely with
The Bank’s Contribution.

The Bank will contribute Taka 5.00/Thousand on a yearly basis against the last basic salary of each
eligible employee. (The rate of contribution may be changed subject to the approval of the board.)
The Bank maintains a liability account to manage the fund.

The total amount of benefit will be equal to 36 times of the last basic salary of the employee.

Exclusion from Employee Security Benefit:

 Employees will not be eligible for the benefit, if Death or disability is caused by:
 For further injury of Employees with pre-existing degree of disablement.
 Attempted suicide or self-inflicted injury.
 Civil commotion, Assault, homicide or any war like operations
 Making an arrest as an officer of law.
 Committing a felony.
 Racing on wheels.
 Accident while the employee is affected by Alcohol/Drug.
 The Board of Directors reserves the power to close fund at any time. At such event the fund
shall be refunded to the Bank.

Jamuna Bank Employee’s Provident Fund:

The Jamuna Bank employees’ provident fund requires the employer i.e. Jamuna Bank Limited to
contribute to the fund 10% of basic salary for all regular confirmed employees. Every member of this
fund on retirement is provided with a sum of money as determined by the established rules for the
35 | P a g e
fund on retirement or resignation from his or her services. A board of trustee is entrusted with the
control, management and investment of the fund.

Contribution:

As stated by the rules, each member contributes a sum equal to 10% of the basic salary each month
that is deducted by the bank at the time of payment. JAMUNA Bank Limited matches the employee’s
contribution with a monthly payment equal to 10% of the basic salary of each member. Every half
year, each member’s account is credited with interest pertinent to the income earned on the
investments from the fund. The sum of money given by the members and the amount contributed by
the bank are credited separately to his/her account in a special ledger kept by the trustee at the head
office of the bank in Dhaka.

Payment:

At the time of resignation or retirement, the employee is entitled to receive the employer’s
contribution and the accumulated interest subject to his or her length of membership in the
contributory provident fund.

If the employee has been a member for less than or equal to year then he/she will not be eligible to
receive any of the above mentioned contributions. He/she will only be able to obtain his added
contributions over the period of his membership.

If the duration of membership has been equal to or less than three years then the member will be
entitled to receive 50% of the employer’s contribution and accumulated interest.

If the duration of membership has been more than 3 years then the member will be entitled to receive
100% of the accumulated interest and employer’s contribution.

In case a member is dismissed due to negligence or incompetence, he or she will be entitled to receive
her/her own contribution along with the accrued interest thereon at the settled interest rate. The
bank’s contribution however may be forfeited and distributed among the members according to the
individual balances of the members.

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The same is applicable in case of an employee dismissed from the bank due to misconduct or fraud.
However, for such purposes, only the trustees shall be the sole judge of whether the cause of
dismissal or forced retirement is significant enough or not.

Car Loan Scheme:

The car loan facility is extended to employees of or above the grade PO. The amount of loan that
these employees can take obviously varies according to their respective job grades.

Principal and Senior Principal Officers can take loan amounting to Tk.800, 000 AVP, FAVP, SAVP
can file for loan amounting to Tk.10, 00, 000

VP and SVP can file for loan extending up to Tk 14, 00,000.

Car Allowances:

Employees of or above the grade of AVP are also provided with car allowances that incorporate
expenses for Fuel, Driver and Maintenance.

AVP, FAVP, SAVP can have an amount of TK.29, 000 allocated as car allowance per month. The VP
and SVP can have an amount of TK.37, 000 allocated as car allowance per month.

Staff Loan:

Staff loan is granted to regular confirmed employees of the bank. The duration of service of the
employee has to be at least a year long. The employee can apply for loan extending up to 5 times of
his/her gross salary at 10 % interest rate.

House Building loan:

Employees who have had a service length of 5 years and above are eligible to apply for house
building loan. A committee will oversee the loan application and monitor the location for house

37 | P a g e
building the debt burden ration of the employee and other relevant issues. The debt burden ratio for
the employee has to be 50% or below for the loan to be approved. The repayment schedule for the
loan has to be before the retirement of the employee. The interest rate of the loan is 3%.

Termination Benefit:

In case a confirmed employee is asked to resign from his/her services by the relevant authority
without stating any reason, he/she is eligible to receive one month’s notice in writing or one month’s
gross salary as payment. If the employee is duly notified with one month’s notice, he/she will not be
entitled to receive any form of compensation for the termination of services.

Suspension Benefit:

In the event that a report/information about misconduct or fraud is received against an employee,
he/she has to undergo stages of disciplinary proceedings. The employee is presented with charge
sheet and is given 4 days to come up with an explanation. A preliminary enquiry committee is formed
and an enquiry notice is issued that marks the beginning of a proper domestic enquiry. If, according to
the committee’s report, the employee is found guilty he is duly punished. In case the employee is
found not guilty, he/she is retained with due respect. During the period of enquiry, the employee may
be suspended and will only receive 50% of his basic salary. In case he/she is proven to be not guilty,
then the full amount of salary must be refunded to the employee.

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 Chapter 5
Analysis and Findings

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Swot Analysis of Jauna Bank Limited
STRENGTHS WEAKNESSES
Strong corporate identity
Strong employee bonding and
belongingness
Enthusiastic workforce
Sophisticated automated
system.
Network of Branches
OPPORTUNITY THREAT
Acquisition
Country wide network
Experienced managers
Huge population
Weak marketing message by
Absence of strong marketing
activities
More innovative products must
be offered
High charges of Fund Transfer
Discouraging small
entrepreneurs
Upcoming banks
Similar products are offered by
other Banks
Industrial downward trend due
to recession, inflation and
unemployment
40 | P a g e
 local and foreign banks
Fluctuating exchange rates

Findings Of Jamuna Bank

Jamuna Bank Ltd. is new generation private commercial bank was established by a group of winning
local entrepreneurs conceiving an idea of creating a model banking institution with different outlook
to offer the valued customers, a comprehensive range of financial services and innovative products
for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of
trade, commerce and industries. Findings from my point of veiw are:

 Lack of motivation toward the employee.

 JBL has not enough branches that is why they can not provide sufficient customer service.
 JBL uses flora-bank online software to record day to day transaction.
 Some cases the quality the employee is not up to the mark.
 JBL offers various types of attractive products to customers.
 Now a day most of the customers are using ATM card. Though JBL provides ATM card they
do not have enough ATM booth.
 JBL follows some principle for lending.
 Interest rate of JBL is high in compare to other bank.
 JBL does not have enough features to loan lending sector.
 Default rate of JBL is decreasing.
 Net income and deposit are increasing year by year.
 JBL has strong loan monitorig system.
 Jamuna Bank Ltd. is heavily relying on debt and borrowing than equity financing.

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 Chapter 6
Recommendations and
Conclusion

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Recommendation:

In order to get competitive advantage and to deliver quality service, top level management should try
to modify the service. As an internee of JBL, Banani branch, I have some recommendations which are
given below:

To arrange more employee in the customer relationship section for reducing the pressure.

Employees should be more expert and trained to use the Flora software (According to the statement
of some employee of JBL who has the experience to use more than on banking software).

JBL has to ensure the good networking system between the employees should use at Service for
SWIFT communication.

Branch has to ensure at least one IT exporter. JBL should train up their branch personnel about all
sort of information regarding SWIFT and its services.

JBL should always monitor the performance of its competitors in the field of foreign trade.

Customer service should be faster than others banks. For customers convenience in foreign exchange
department of JBL should provide more personnel to deliver faster services to their honorable
customer.

JBL should focus on their promotional activities.

They should focus on the marketing aspects to let customers know about their products and offerings
and more promotion should be given to attract new customers.

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Conclution

Compensation and benefits are significant area of human resource management, and also it can
greatly affect employee behavior. To be effective, compensation must be perceived motivate the
employee to work properly in the organization. The outcome of job evaluation is the development of
an internal structure or hierarchical ranking of jobs. Jamuna Bank that encourage to do the work and
also some lacking. . It depends on Human Resource Department where they decide how to satisfy
their employees. There are also motivational factors needed for the career development of the
employees that they can give best performances to the bank.
Bibilography

 https://prezi.com/g5jo_tvkyd6q/jamuna-bank-limited/
 http://www.slideshare.net/sukeshgowda/project-report-on-compensation-and-benefits
 http://www.assignmentpoint.com/business/organizational-behavior/internship-report-
compensation- benefits-package-aci.html
 www.patriotsoftware.com
 www.assignmentpoint.com