Professional Documents
Culture Documents
basing on what have the students learned through the internship program. Being a student of BBA (with major in Human Resource Management) in Stamford University Bangladesh, I had the opportunity to work at the Dhaka Bank Limited from February 1 to April 30.
salary and compensation administration. We discuss only one organization throughout this report, that is, the Dhaka bank ltd.
1.5 Methodology:
The information I used to prepare this report has been collected from practical knowledge, direct conversation with officers, by observation of unit activities, annual report of DBL, job description of each employee of the unit, DBLs website and other various websites.
Short of time:
I had to complete this report writing within a shorter period of time. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.
Insufficient data:
Some desired information could not be collected due to confidentially of business This report did not cover all the function of Human resources that followed in Dhaka bank.
CHAPTER 2
OVER VIEW OF DHAKA BANK
financial-tool in modern banking sector. Though DHAKA BANK is always trying to improve their services in this field, but in todays competitive business world, banks need to offer additional concentration to the clients requirement in order stay at the top. The strength of a bank depends on its management team. The Employer in Dhaka Bank is proud to have a team of highly motivated, well-educated and experienced executives who have been contributing substantially in the continued progress of the bank. The management is ably supported and assisted by well-motivated and experienced officers to run the day-to-day affairs of the bank smoothly. The bank is proud to have a dedicated band of people to whom the commitment to provide Excellence in banking is imbued in the way of their life. The marketing activities at the Dhaka Bank LTD. are very implicit and vast comparing to that of other bank in the country today. The Philosophy of the bank is EXCELENCE IN BANKING. This is the banks commitment and guiding principle. In the General Banking sector marketing seems to be the most important sector. To influencing the clients the bank uses a few apparatus or tactics. The main objective of the bank is to persuade the clients to open an account in the bank, because a bank is an institute where the service is more or less intangible. As the product of the bank is service oriented. Therefore, in most cases the bank has to pursue the customers through their wit and intelligence. Besides, there are a number of banks in the country both national and international therefore, the competition is immense. There are some very strict rules and specially maintained regulations and the operations of the bank, which are regulated by Bangladesh Bank. Another important task of the bank is to maintain the reputation through their customer service oriented facilities. And Dhaka Bank is always willing to offer new product features to the client. Besides the applications of these products or services are prepared in a very modern way so that the service can be provided in least time required. The Credit facilities approved by Dhaka Bank are increasing day by day because of its well-organized and trained management and also well-equipped facilities. The Bank 8
didnt stick with its in only one field rather it has diversified its credit facilities. In recent time banking sector becomes very competitive and without giving good and attractive facilities and service no bank can survive in this time. Dhaka Bank is also trying to provide good service to keep going with this competition. The Authorized Capital of the Dhaka Bank Limited (DBL) was Tk.6, 000 Million and Paid up Capital of Tk.100 million. The Paid up Capital of the Bank stood at Tk.1934 Million as on 31 December 2008. The Total Equity (Capital and Reserves) of the Bank as on 31 December, 2004 stood at Tk.1, 488 Million. Tk. 2216 million in 2005 increase 31 December 2006 Tk.2551 increase 31 December 2007 Tk 3,125 increase 31 December 2008 Tk 4,000 which exceed the stipulated requirements for Banks in Bangladesh.
2.4 Slogan
Excellence in Banking
2.5 Motto
The bank will be a confluence of the following three interests: Of the bank : profit maximization Of the customer : maximum benefit and satisfaction. Of the society : maximization of welfare
2.6 Values
Customer Focus Integrity Teamwork Respect for the individual Quality Responsible Citizenship.
2.7 Strategies
Establish DBL as one of the top five successful Private Commercial Banks by 2008 Build a strong deposit base. Introduce new products & services and upgrade existing products & services at
comparatively low cost in order to assure quick respond to the changing demands in the market. Strengthen corporate identity and values. Bring the entire system under a very advanced IT platform. Socialize and present the bank to the community as a corporate partner
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Short-term Goal:
To increase Current Market Shares at least 0.50% by 2009.
Financial Goal:
To reduce the existing Cost of Fund by 1%, this currently stands at 11.06%
Other Goals 1. To be one of the best Banks of Bangladesh. 2. To achieve Excellence in Customer Service next to none and superior to
competitors. all
3. To cater to all differentiated segments of Retail and Wholesale Customers. 4. To be a High Quality Distributor of Product and Services. 5. To use state of the Art Technology in all spheres of Banking.
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purpose 0f carrying on banking, financial investment and trust business and/or any other business as provided hereafter c) To carry on any business relating to Wage Earner Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of foreign currency accounts and any other matter d related thereto. d) To contract or negotiate all kinds of loan and/or assistance, private or public from any source, local or foreign, and to take all such steps as may be required to be complete such deals. e) To form, organize assets, participate or aid in forming, promoting or organizing any or abroad for the purpose of undertaking any banking financial investment and trust business. f) To take part in the formation, management, supervision or control of business or operations of any company or undertaking and for that purpose to render technical managerial and services and act as administrator, manager and secretary. g) To purpose, or otherwise acquire, undertake, the whole or any part of or any interest in the business, goodwill, property, contract, agreement, right, private assets and liabilities of any other company bank corporation, partnership, body person or persons carrying on, or having on, any business which the company is authorized to carry on such terms and may be deemed expedient. h) To encourage sponsor and facilitate participation of private capital in financial industrial or commercial investment, share and securities and in particular by providing finance in the form of long, medium or short term loans or share participation by way of subscription to the promoter shares, or underwriting supports or and/or by any manner. i) To amalgamate or reconstruct or recognize with any commercial bank, or body corporate or association in cooperation with any person, commercial bank or association. j) To establish and open offices and branches to carry on all or any of the above business abroad and within the country provided prior permission is obtained from the Bangladesh Bank. k) To establish provident fund, gratuity, pension, and other fund for the welfare and benefit of the employees and staffs, former or present and any matter related thereon. bridge finance loans
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l) To act as official liquidator and receiver. m) To receive, borrow or raise money on deposit, loan or otherwise upon such terms as the Dhaka Bank may approve and to give guarantee and indemnity in respect of any debt or contract. n) To appoint officials, staff, experts, advisers, consultants, auditors, Legal advisers and provide for their suitable remunerations. o) To advance, deposit or lend money to or with such persons or bodies, corporate, unincorporated, statutory, govt. and/or its agencies on such terms as the Dhaka Bank.
2.10 Workforce:
Dhaka Bank Limited (DBL) recognizes that a productive and motivated Work Force is a prerequisite to leadership with its Customers, its Shareholders and in the Market it serves. DBL treats every Employee with dignity and respect in a supportive environment of trust and openness where people of different backgrounds can reach their full potential. The Banks Human Resources Policy emphasize on providing Job Satisfaction, Growth Opportunities, and due recognition of superior performance. A good working environment reflects and promotes a high levy the utmost importance on continuous development of its Human Resources, identify the strength and weakness of the employee to assess the individual training needs, they are sent for training for selfdevelopment. To orient, enhance the Banking knowledge of the employees Dhaka Bank Training Institute (DBTI) organizes both in-house and external training. Total number of employees stood at 898 as on December 31, 2008.
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maintains a need based Correspondent Relationship Policy, which is gradually expanding. The number of Foreign Correspondents is now 350.
Urban / Rura l
Address
Date of Openning
Agrabad
Urban
20-Jan-1996
Amin Bazar
Rural
Market Complex (1st Floor), Amin Bazar Jame Mosjid, 780, Begum Bari Union, Amin Bazar, Dhaka. Plot # 127, Bangabandhu Avenue, Narayangonj
15-Mar-2001
B. B. Road
Urban
2-Jul-2007
Banani
Urban
7-Oct-1996
Bangshal
Urban
6-Dec-1995
Baridhara
Urban
House # 27, Block # K, Shahid Sohrawardi Avenue, Baridhara, Dhaka Jamuna Shopping Complex, Mukundagati Bazar, Belkuchi, Sirajgonj Dag No. 361, Mouza No. 84, Board Bazar, Gazipur
14-Nov-2006
Belkuchi
Rural
24-Apr-2003
Board Bazar
Rural
8-Nov-2006
Bogra
Urban
24-Nov-2005
10
CDA Avenue
Urban
1st Floor Avenue Center, Plot#3900, 901, 565/A, CDA Avenue, East Nasirabad, Chittagong
25-Dec-2005
14
11
Coxs Bazar
Urban
15-Dec-2005
12
DEPZ
Rural
12-Apr-2001
13
Dhanmondi
Urban
House # 500 (Old) 20 (New), Road # 07, Dhanmondi R/A, Dhaka - 1205
1-Aug-2000
14
Fantasy Kingdom
Rural
20-Mar-2002
15
Foreign Exchange
Urban
15-Jul-1998
16
Goalabazar
Rural
27-Dec-2006
17
Gulshan
Urban
13-Oct-2004
18
Hathazari
Rural
J & G Shopping Complex (1st Floor), Nazirhat Road, Hathazari, Chittagong Sadharan Bima Sadan (Ground Floor), 102, Agrabad C.A., Chittagong Sara Tower (1st Floor), 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000 1, Imamganj Lane, Imamganj, Dhaka
3-Sep-2006
19
IBB-Agrabad
Urban
22-May-2004
20
IBB-Dhaka
Urban
2-Jul-2003
21
Imamganj
Urban
12-Apr-1997
22
Islampur
Urban
12-Jan-1998
23
Joypara
Rural
30-Nov-2005
24
Jubilee Road
Urban
15-Sep-1997
15
25
Karwan Bazar
Urban
16-Nov-2000
26
Khatungonj
Urban
12-Aug-1996
27
Konabari
Rural
28-Dec-2006
28
Laldghirpar
Urban
8-Oct-1998
29
Local Office
Urban
5-Jul-1995
30
Madhabdi Bazar
Rural
8-Nov-2001
31
Moghbazar
Urban
70, Outer Circular Road (1st & 2nd Floor), Moghbazar, Dhaka
11-Sep-2006
32
Moulavibazar
Urban
S.R. Plaza (1st Floor), 1151/3, M Saifur Rahman Road, East Bazar, Moulavibazar. 26-29, S.M. Maleh Road, Tanbazar, Narayangonj
26-Dec-2004
33
Narayanganj
Urban
3-Dec-1997
34
Rajshahi
Urban
23-Nov-2005
35
Rangpur
Urban
24-Dec-2006
36
Saidpur Branch
Rural
Gouri Plaza (1st Floor), Shahid Dr. Zikrul Islam Road, Saidpur, Nilphamari Plot # 12266-12268, Baro Bazar, Thana Road, Satkhira Sadar, Satkhira Tofayel Shopping Complex, Sonaimuri, Noakhali
25-Oct-2007
37
Satkhira
Urban
28-Dec-2006
38
Sonaimuri
Rural
2-Oct-2005
16
39
Uttara
Urban
30-Dec-1999
40
Feni
Urban
19-Nov-2007
41
Keranigonj
Rural
Khan Plaza (1st Floor), Shahid Delowar Hossain Road, East Aganagar, Keranigonj, Dhaka.
30-Dec-2007
42
Savar Bazar
Rural
25-Aug-2008
43
Uposhahar
Urban
25-Aug-2008
44
Pagla Bazar
Rural
Alhaj Afsar uddin Karim Bhaban 1 st Floor,Pagla Bazar Fatulla Narayanganj Plot no# 01, Road No# 05, BL# A, Section# 10, Dhaka-1216, 1at, 2nd floor. Holding No:2B, KDA Avenue, Ward No: 20, Khulna City Corporation, Thana Shona Danga, Khulna Nur Mension Market Golakandil, Bhulta Rupgonj, Narayangonj
31-Aug-2008
45
Mirpur
Urban
7-Jun-09
46
KDA Avenue
Urban
20-Dec-09
47
Bhulta Branch
Rural
23-Dec-09
48
Patiya
Rural
Holding No: 720/1375/Kha, Thana Road, Word No: 5, Thana: Patiya 27-Dec-09
49
Comilla
Urban
Holding No: 20, Kandipar Mor, Word No: 11, Thana: Kotwali, Comilla 27-Dec-09
50
Halishahar
Urban
Holding No: 14/A, Road No: 02, Block: G, Halishahar Housing Asset, Word No: 24 29-Dec-09 Adamjee Court , 115-120, Motijheel C.A., Dhaka - 1000
17
Sara Tower, 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000
IT Division
Sara Tower, 11/A Toyenbee Circular Road, Motijheel C.A., Dhaka - 1000
1st Floor, Chamber House, Holding No:55, Plot No. S.A-486, S.S. Road, Thana-Sirajgonj, Sadar, Pourashava- Sirajgong, Sirajgong. 1st Floor, 6, Jubilee Road, ThanaKotwali, Chittagong City Corporation, Chittagong. 1st Floor, 179, North Goran, P.O. & P.S.-Khilgaon, Dhaka-1219
Ground Floor, Zone Service Complex, Chittagong Export Processing Zone, South Halishahar, Chittagong 1st Floor, Holding No.3903, Khaza Garden City, Town Hall Road, Thana-Habigonj Sadar, PourashavaHabigonj,Hobigonj
25/10/2009
Dhaka
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Name of company
Legal form
July 5, 1995
Biman Bhaban (1st floor) 100 Motijheel c/a, Dhaka 1000, Bangladesh
Tele fax Swift (Society for worldwide inter bank financial telecommunication)code E-mail Web Page Auditors Tax consultant Credit Rating Company Managing director Company Secretary
DHBLBDDH
info@dhakabank.com.bd www.dhakabankltd.com ACNABIN Chartered accounts Howladar,Yunus & co. Chartered account Credit Rating Information and Services Limited
Shahed Noman Mohammad Abu Musa Khondker Fazle Rashid Arham Masudul Huq
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Min Tk 50,000 (singly or jointly) with multiples of Tk 10,000 Max Tk 20,00,000 (in single name) Tk 35,00,000 (in joint name) Any day of the month 6 years
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deposit will be BDT 500.00 The client will have the option of depositing any amount in multiples of BDT 500.00 subject to a maximum of Tk 20,000. The client has flexibility of deciding on the tenor of the scheme in-terms of number of months. However, the minimum tenor would be 48 months and the maximum would be 144 months. A client can open maximum five DPS accounts in clients name, in his/her spouses name or in the name of his/her children or in joint names with any of his/her family members. if the client continues the scheme up-to maturity then at maturity, the client will be awarded a bonus 1% on the total deposit amount. However, to qualify for the bonus point, client may default in paying maximum 2 installments within the tenure of the DPS. If any client closes the deposit account before one year, s/he will not be entitled to any interest. Account running more than a year will be eligible for the prevailing interest offered in the savings account. Clients failing to deposit any installment will pay 5% late payment fee on the deposit installment amount as late payment fee, which will be realized at the time of depositing the next deposit Installment. Clients will have to open an Account with Dhaka Bank Limited and a standing instruction will be executed for auto-debit to effect the monthly installment. Clients will have the option of taking advance up to 90% of the deposited amount.
Dhaka Bank Limited, the bank has successfully launched Personal Loan. The product is a term financing facility to individuals to aid them in their purchases of consumer durables or services. The facility becomes affordable to the clients as the repayment is done through fixed installment s commonly known as EMI (equal monthly installment) across the facility period. Depending on the size and purpose of the loan, the number of installments varies from 12 to 48 months. Loans are restricted to Bangladeshi nationals falling in the categories mentioned below The minimum age for any borrower will be 25 years and the maximum age 52 years with a minimum verified Gross Family Monthly Income of BDT 10,000. 22
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clients as the repayment is done through fixed installment as commonly known as EMI (equal monthly installment) across the facility period. Depending on the size of the loan, the maximum period of the loan would be 180 months (15 years). Loans are restricted to Bangladeshi nationals falling in the categories mentioned below: The minimum age for any borrower will be 21 years with a maximum age 50 years (at the time of application). The minimum verified Gross Family Monthly Income of the applicant should be BDT 40 000.The family income will include only the income of the applicant and spouse. The maximum permitted Equal Monthly Installment (EMI) paid by the borrower should be no more than the 33% of the Family Monthly Disposable Income (FMDI) of the borrower per month. In calculating FMDI, we propose to use the following industry standard formula. Proven income of obligor PLUS proven income of spouse (if the spouse is working) LESS current monthly loan obligations (if any), other monthly fixed obligations (rent, childrens education, monthly food expenses, etc). Minimum loan amount Maximum loan Loan amount limits under the amount program BDT 500,000 BDT 3,500,000 The maximum loan tenor for different amount of loan is proposed to be as following Loan Amount Max Tenure 5 lac to less tan 10 lac 5 yrs 10 Lac to 35 lac 10-15yrs (negotiable)*
1. * The tenor will be decided at the discretion of the management. 2.14.10 Any Purpose Loan Its time to do a few things you really wanted to Introducing "Any Purpose Loan" from Dhaka Bank Limited. Now you can get loan up to Tk. 500,000* to spend it any way you choose to. Just walk into any of our branches and walk out loaded. 2.14.11 Excel Account
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Excel Account has been tailored in the manner of having both asset and liability characteristics blended into a single product for salaried individuals employed in any institution. On virtue of this product, prospective clients receive a credit interest based on the credit balance available in the account. The clients will also be required to pay the bank OD interest if the balance of the account becomes overdraft. The institution to which the individual is employed must have salary account maintained with the bank. The institution must have a corporate guarantee maintained with the bank. 2.14.12 Salary Account Dhaka Bank has launched a special package of savings account for employees belonging to institutions with which Dhaka Bank has a corporate agreement. With this package salaried employees of these institutions enjoy interest on a daily balance. The key features of the Salary Account are: Interest to be calculated on a daily balance basis No Periodic Service Charge ATM Card Facility Credit Card Facility On-line Banking Facility Internet & SMS Banking Facility
2.14.13 Gift Cheque Dhaka Bank has recently refurbished its Gift Cheque. The features of the gift cheque are as follows: Can be encashed at any branch even if the encashing branch is not the issuing branch of the instrument. Interest will be applicable only if the instrument is encashed after three months from the date of issue in the following manner:
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a. No Interest if encashed before three months from the date of issue. b. 6% if encashed after three months and before twelve months from the date of issue. c. 7.25% if encashed after twelve months from the date of issue. The gift cheque may be encashed using either of the two modes, (a) cash or (b) Fund Transfer. Encashment of gift cheque is not allowed over clearing. No service charge is applicable Dhaka Bank Limited issues gift cheque in three denominations of Tk.100, Tk.500 and Tk.1000 2.15 Other Retail Banking Products Current, Savings & FD Accounts 24 hours Banking ATM Card: In order to add value to product & services DBL. has reduced the annual fee of the card from Tk. 1500 to Tk. 500 per year. Clients can now settle BTTB & Grameen phone bills using ATM card. DBL. Credit Card: The cash advance limit has been increased to 50% from 25%. The unique feature of this service is to deliver the Credit Card within only 7 days against security; and for unsecured card it only takes 10 days. DBL. also offer Spouse Card absolutely free of cost. Any Branch Banking and Phone Banking (absolutely free of cost). Foreign Currency Accounts (NFCD & RFCD).
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2.17 Security of Assets A powerful and effective means of generating funds for a certain category of institutions, Security of Assets is still in its infancy in The need however for such a service is great and there is a lot of support from multilateral financial institutions, such as the World Bank and the Asian Development Bank, for such activities to be developed further in this country. Dhaka Bank intends to take up this challenge and play a significant role in ensuring that Security of Assets becomes a normal part of the range of financial instruments available for organizations who can count on a steady, but piecemeal, flow of revenue and want to translate this stream into cash resources with which to carry out further lending activities to new customers. Some practical issues still need to be settled such as those concerning pricing, or the legal framework, but it is expected that, as Dhaka Bank and other institutions pursue more such security activities these will be resolved. 2.18 Finance & Advisory Services Given the needs of its large and varied base of corporate clients Dhaka Bank will be positioning itself to provide investment banking advisory services. These could cover a whole spectrum of activities such as Guidance on means of raising finance from the local Stock markets, Mergers and Acquisitions, Valuations, Reconstructions of Distressed companies and other expert knowledge based advice. By this means Dhaka Bank hopes to play the role of strategic counselor to blue-chip Bangladesh companies and then move from the level of advice to possible implementation of solutions to complex financing problems that may arise from time to time. 2.19 Syndication of Fund There has been a surge in the number of syndication deals closed in the last few years. 2004 was an exceptionally good year for syndicated deals for the local commercial banks also for the foreign banks. The total number of syndications in 2004 exceeded 10 totaling over Tk. 10 billion. This rise in the number of syndications can be primarily attributed to the prudential lending guidelines of the Bangladesh Bank. A commercial bank may
27
provide funded facilities up to a maximum of 25% of its equity. Due to this reason, projects with sizeable costs need to approach more than one bank for their debt requirements and therefore the demand for syndications exist. Credit risk diversification has led many international companies to introduce credit derivatives that are actively being traded. Security of assets is one such credit risk derivative that allows financial institutions to diversify their portfolios.
At Dhaka Bank Limited, the Syndications and Structured Finance unit was setup on October 30, 2004. This unit successfully closed two syndicated deals in the first and second quarters of 2004. The Syndications and Structured Finance team as a business unit soon followed up by closing another deal totaling Tk 2.10 billion for a large local corporate. The year (2004) being the first full year of operation for the team ended on a high note as we were able to close three syndicated deals as the Lead Bank, two deals as the Co-Arranger and several other deals as a participant. 2.20 Small and Medium Enterprises Dhaka Bank has come forward to extend its services towards Micro and Small & Medium Enterprises. Since inception, the Dhaka Bank has held socio-economic development in high esteem and was among the first to recognize the potentials of SME.
2.21 Dhaka Banks Involvement: Recognizing the SME segments value additions and employment generation capabilities quite early, the Bank has pioneered SME financing in Bangladesh in 2003, focusing on stimulating the manufacturing sector and actively promoting trading and service businesses.
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The SME unit has used the year 2006 diligently in building its capabilities and has furthered its portfolio to address the needs of small enterprise with a portfolio growth of 2000% compared to year-end 2005.
2.22 Story of a successful Branch in SME Financing: The Bank started branch operations at Belkuchi Sirajgonj in April 2003. Prior to the Banks intervention, the weaving community did not have the financial strength to stock their products till Eid ul Fitr when the annual sale takes place. Traders were taking advantage to the situation by buying up entire productions at low prices and liquidating stocks just before Eid. With financial services from Dhaka Bank Limited, the weavers have converted to power looms, significantly increased profitability and reduced the involvement of middlemen. They are now working on institutionalizing the learning and applying them in other areas across Bangladesh, particularly in textiles, light engineering and other manufacturing clusters. Already we have identified several clusters and are working on improving access to finance within these clusters. 2.23 Services of Dhaka Bank Limited 2.23.1 Personal Banking Amongst Private Sector bank's, Dhaka Bank has already made its mark in the personal banking segment. The promotions like "Baishakhi Offer", a strategic tie up with Electra International Limited, distributor of Samsung brand products, and "Freeze the Summer Campaign" a strategic tie-up with Esquire Electronics Limited, distributor of Sharp/General Brand electrical appliances saw Dhaka Bank to experience more than a reasonable growth on the personal banking business in 2008. 2.23.2 Corporate Banking
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Providing a tailored solution is the essence of our Corporate Banking services. Dhaka Bank recognizes that corporate customers' needs vary from one to another and a customized solution is critical for the success of their business. Dhaka Bank offers a full range of tailored 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 right solution. You will find top-class skills and in-depth knowledge of market trends in our corporate Banking specialists, speedy approvals and efficient processing fully satisfying your requirements - altogether a rewarding experience. Their experience in handling Corporate Banking business covers a wide span of businesses and industries. You can leverage on our expertise in the following sectors particularly: Telecom, Media and Technology Textile, Ready Made Garments Edible Oil, Consumer and Diversified Industries Shipping, Ship Breaking, Steel and Engineering Energy, Chemicals and Pharmaceuticals Cement and Construction Financial Institutions 2.23.3 Floating of Public Issues The Bank assists companies to underwrite public issues. Dhaka Bank has successfully participated in a number of issues. 2.23.4 Loan Syndication 30
DBL participates in a number of loan syndication arrangements involving foreign investment has been highly acclaimed. The projects we have handled as the lead arranger or co-arranger with other banks and financial institutions include production and export oriented ventures in power generation, cement production, food processing and a large undertaking in leisure and amusement.
2.23.5 Islamic Banking Dhaka Bank Limited offers Shariah based Islamic Banking Services to its clients. The bank opened its First Islamic Banking Branch on July 02, 2003 at Motijheel Commercial Area, Dhaka. The second Islamic Banking branch of the bank commenced its operation at Agrabad Commercial Area, Chittagong on May 22, 2004.Dhaka Bank Limited is a provider of on line banking services and any of its clients may avail Islamic Banking services through any of the branches of the bank across the country. Dhaka Bank Islamic Banking Branches offer fully Shariah based, Interest free, ProfitLoss Sharing Banking Services. Dhaka Bank Shariah Council is closely monitoring its activities. Besides, Dhaka Bank is an active member of Islamic Banking Consultative Forum, Dhaka and Central Shariah Board of Bangladesh. 2.23.6 Capital Market Services Capital Market Operation besides investment in Treasury Bills, Prize Bonds and other Government Securities constitute the investment basket of Dhaka Bank Limited. Interest rate cut on bank deposits and government savings instruments has contributed to significant surge on the stock markets in the second half of 2004, which creates opportunities for the Bank in terms of capital market operations. The Bank is a member of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Capital Market Division conducted a total trade of tk.2,045 million against tk.1,164 million in 2005. Gross Operating profit from Capital Market Services Division is tk.39.80 million against tk.5 million in 2005. 2.23.7 ATM Card Services 31
Features: Cash Withdrawals up to Tk.1 Lac per day Utility payments T&T, Mobile phones, DESA, etc. Multi-account access Fund Transfers Mini Statements PIN change
2.23.8 Credit Card Services Get it in just 7 days, or free! Dhaka Bank Limited brings you Your Everyday Credit Card in the shortest possible time. We recognize that you need your card every day. That is why we have developed processes to guarantee delivery of your card in just 7 days when you apply for a fully secured card; for an unsecured card it will be ready in just 10 days. Otherwise we will give you the card free - the subscription fee completely waived! What you can do with your Dhaka Bank Credit Card Everything you would expect from a credit card. You can use it at all the merchant locations that display the Vanik Card sticker. That's not all. You can also use it at all the locations that display the Card sticker. And that's a whopping 1,700 merchants and more than 50 products and services. What's more, we are always increasing our merchant locations. An updated list is available from our Card Centre. Free Spouse Card Your spouse needs a card too for everyday use. That is why we offer a card to your spouse absolutely FREE. Your spouse can enjoy the same facilities as you do. So, you won't have to worry about whether either of you are carrying enough cash.
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Convenience: Unlike other cards, all branches of Dhaka Bank Ltd. can accept your bill payments and handle your card service requests. You may open an account as well with any of these branches to conduct all your banking and card service requirements under one roof. Flexible Repayment Options: Dhaka Bank Credit Card offers you credit facility absolutely FREE up to a maximum of 45 days. You get 15 days time from the date of statement to repay your dues. You can pay in full within 15 days (and save money; no interest accrued, no payout) or in part. The minimum amount required to pay is 1/12th of the total amount or Tk. 200 (whichever is higher). The revolving credit line of your card allows you to select payment terms to suit your other financial commitments. Quick Replacement: If card has been lost or stolen, a replacement will be sent to the client within a couple of days. But remember to report the loss as soon as you have detected it. Once reported, there will be no liability on fraudulent.
2.23.9 Locker Services A client could use the locker facility of Dhaka Bank Limited and thus have the option of covering your valuables against any unfortunate incident. DBL offer security to our locker service as afforded to the 33
Bank's own property at a very competitive price DBL would be at your service from Saturday through Thursday from 9:00 am to 4:00 pm Lockers are available at Gulshan, Banani, Dhanmondi, Uttara, CDA Avenue & Cox's Bazar Branch.
2.23.10 Online Banking Services Dhaka Bank Limited introduces Net Banking and intends to maintain the lead with enhanced facilities through this media. Client can get access to real time account information through the Internet. Transfer money from his/her account, utility bill payment and more. Through onLine Banking Services, clients can deposit to and withdraw from his/her account held with a particular branch up to a limit of Tk: 10,000.00 through any branch of Dhaka Bank Limited 2.23.11 Internet Banking Services Through Internet banking the client can access the account to view and print the balance account statement for last 20 (twenty) transactions.
2.24 Growth of the Bank The Dhaka Bank Limited (DBL) is one of the most successful Private Sector Commercial Bank in our country, though it started its operation only fourteen years back. It has achieved the trust of the general people and made reasonable contribution to the Economy of the country by helping the people investing allowing Credit Facility. 2.25 Capital & Reserve Dhaka Bank Limited (DBL) commences its operation with an Authorized Capital of Tk.1000.00 Million with Paid up Capital of Tk.100.00 Million.The Paid up Capital of the Bank amounted to 1547 Million as on December 31, 2007 and Tk.1934 Million on 2008. Table 1: Paid up Capital of DBL Taka in Million Year 2007 Paid up Capital 1547
34
2008
1934
Table2: Capital & Reserve of DBL Taka in Million Chart 2 : Capital & Reserve of DBL Taka in Million
2 0 0 72 0 0 8
2008 2007
2 0 0 72 0 0 8
2.26 Profit
35
Dhaka Bank Limited (DBL) registered an Operating Profit of Tk.703 Million as on December 31, 2007. Tk 839 Million on 2008. Where as it was Tk.136 Million in the previous year (2006).
Table 3: Profit of DBL Taka in Million Year Profit 2007 703 2008 839 Chart 3: Profit of DBL Taka in Million
9 8 7 6 5 4 3 2 1
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
2 0 0 27 0 0 8
2.27 Deposits
As on December 31, 2007 the Total Deposits of the Bank stood at Tk.48730 Million. In 2008 the total deposit of the bank stood at Tk.56986 Million. Table 4: Deposits of DBL in tk. million Year 2007 2008 Deposits 48730 56986
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2.28 Loan and Advances The Bank recorded a 24% growth in Advances with a Total Loans and Advances Portfolio of Tk.46698 Million at the end of December 2008 compared to Tk.39972 Million in 2007. Dhaka Bank is making Loan and Advances in different areas. The Bank continues to explore and diversify its loan .0distribution with the objective of efficient use of resources and take utmost precaution to safeguard it. DBL also participated in a Syndicated Loan. Table 5: Loans & Advances of DBL Taka in Million
Year 2007 2008 Loans & Advances 39972 49698
37
50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2007 2008
2008 2007
38
39
40
perform their jobs is the focus of performance appraisal. Compensation rewards people for performing organizational work through pay, incentives and benefits. The maintenance function is concerned with providing those working conditions that employees are necessary in order to maintain their commitment to the organization. The relationship between managers and employees must be handled effectively if both the employees and the organization are to prosper together. HRM deals with the design of formal system in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. There is a growing recognition that effective use of people in the organization can provide a competitive advantage. It pervades the organization. Every person in an organization is involved with personnel decisions. The responsibility for human resource management activities rests with each manager. If managers throughout the organization do not accept their responsibility, then human resources activities may be done only partially or not at all. It is concerned with managing people at work. It covers all types of personnel. It is a continuous function. It draws on a number of related disciplines, such as industrial psychology, Sociology, Social Psychology, Anthropology and Economics. The function of HRM is advisory in nature. In management terminology, it is a staff function. The personnel manager advises the operating departments on matters relating to personnel. He does not issue orders to them but gives them advice Traditionally, HRM is the process of acquiring, training, appraising, and compensating employees and attending to their labor relation, health and safety, and fairness concerns but in the changing context, HRM is seen as a set of techniques that claimed to embrace and promote new approaches to management of people and work organization to enhance employee commitment and flexibility as well as their willingness to respond rapidly with the changing market conditions for providing competitive advantage to the organizations. This approach is based on four key elements.
41
developed.
2. Strategic Qualities:
a) Because of the above factor, HR decisions are of strategic important. b) Top management involvement is necessary. c) HR policy should be integrated in to the business strategy, stemming from it and even contributing to it.
4. Key Levers:
a) Managing culture is more important then managing procures and systems.
b) Integrated action on selection, communication, training, reward and development. c) Restructuring and job redesign to allow developed responsibility
empowerment.
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The utilization of people, at least in a rudimentary form, can be traced to ancient times. Efforts to best use talents, even through informal in nature, were undertaken whenever people came together in a community. The change has been that during the course of the least century efforts to best manage human resources have become more formal and specialized. The history of HRM can be characterized in two ways. First, as moving through four broad phases: the craft system, scientific management, the human relations approach, and the current organizational science-human resource approach. The twentieth century time line illustrated in Table 1.1.
this new field of scientific management was an American mechanical engineer, Frederick "W. Taylor (1856-1915). Two of Taylor's contemporaries, Frank Gilbreth (1868-1924) and his spouse Ullian Moeller Gilbreth (1878-1972), joined in becoming the proponents of scientific management or industrial engineering. In the decade after 1910, the principles of scientific management were applied on a wholesale basis in the United States. Taylor and his disciples assumed that workers wanted to be used efficiently and were motivated by money. This philosophy proved to be incorrect because it ignored feelings-and other motives. Workers were left dissatisfied with their jobs. Union opposition grew as union organizers condemned Taylorism for depriving workers of a voice in the conditions and functions of their weink. One result was the emergence of welfare secretaries as organizational employee to oversee programs for the welfare of employees. These pro-grant included recreational facilities, employee assistance programs, and medical programs. The welfare secretary position was the beginning of the professional personnel (now human resource) function. As antiquated as scientific management seems now, some would argue that many of the basic principles still apply today.26 For example, the many special in-centive systems organizations use to motivate employees and reward performance are adapted from Taylor's ideas. The ideas of scientific management are adaptable, and its basic principles continue to have relevance after almost 100 years.
going to be changed but then did not change it, the workers expressed satisfaction, and productivity continued to Increase. Mayo saw that the significant variable was not physical but psychological; the reason for the increase in productivity was the workers' attitudes toward their jobs and Western Electric. Because their cooperation had been requested, the workers now felt themselves part of an important group whose help and advice were being sought by the company.27 The discovery of the "Hawthorne effect" led to further research on the social factors associated with work, Results of these studies led to the human relations movement, with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. However, the idea that good human relations in and of themselves will increase productivity failed to be consistently supported, and many of the movement's ideas were abandoned.
Time period HR Focus Before 1890 Industrial 1900-1910 technologies Employee being 1920s
1930s
Disciplinary systems National cash register Health and safety (ncr)forms first well- programs personnel department to Handel employee issues Task design, Time and motion period of scientific efficiency, and management studies impact of work Employee groups on counseling and individual workers testing Major labor relations Union of Communication
45
1940s
1950s
1960s
1970s
1980s
programs Anti-union campaigns Personnel becomes staff support to operational line units Employee benefits Wage increases and compensation Cost-of-living adjustments Pension, health, and other benefits plans Employee Training and relations development Specialized Separate divisions personnel within personnel functions established; recruitment, labor relations, training, benefits etc. Employee Employee rights participation issues now regulated in areas of discrimination, equal opportunity safety and health, and various benefit Perform. 17 Government Employee rights issues intervention now regulated in areas of discrimination, equal opportunity, safety and health Employee recognition Displacement
legislation: Norris LaGuardia Act National labor relation Act(wag net Act)
General Motors And the United Auto Workers sing first contract with escalator clause. The Hawthorne studies from the human relation movement find widespread applicability.
Peter Duckers encyclopedic the practice of Management (1954) finds widespread applicability.
Griggs v.Duke power, the first u,s Supreme Court employment discrimination case. William Ouchi,s Theory Z examines the applicability of Japanese employment practices to Western companies. About 70% of married women are employed, more than double the 1960 rate. Exemplified by David
1990s
and
2000
46
beyond
planning
Ulrichs book Human Resource Champions, which examines the role of HRM in the twenty-first century.
Source: Adapted from William j.Robert k.prescott, and Maria w.Taylor, Strategic Human
Resource Management.
Job analysis: Job analysis is the process of determining the tasks that make up the job
ands the knowledge and skills and abilities an employee needs to successfully accomplish the job. From job analysis, job description and job specification can be prepared. Job description is a written statement of what the jobholder does how it is done and why it is done. Job specifications state the qualifications necessary for a job.
Selection: Selection is a process of hiring suitable people for job. Right man for right
job is the main goal of selection. The selection process involves many steps such as 47
preliminary reception of application, interviewing, test, medical test, references and final decision of hiring.
Job evaluation: Job evaluation is a process of measuring and determining the value of
each job in relation to all jobs within the organization. Jobs are ranked in order to arrive at each job's appropriate worth. It is the basis of designing a well- balanced compensation program. The widely used methods of job evaluation are ranking method, classification method, point rating method, and factor comparison method.
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performance with standards, discuss the appraisal with the employee, if necessary and initiate corrective action.
Collective bargaining is negotiation, administration and interpretation of a written agreement between two parties; at least one of, which represents a group that is acting collectively, that, covers a specific period of time.
With the increase in the size and complexity of business organizations, the most important, factor in business. Business needs people as owners, employees, and consumers. Organizations need people to make them operate. Business may be operated differently and the objectives of business may differ, but the universal element in all business activities is people. An organization is nothing without human resources. Any human organization a factory, a hospital or and association consists of people working together. According to economists, the factors of production are land, labor, capital and entrepreneurship. Of all the resources, the most important one is human resource because human being plays a dual role- as resource, as well as a motive force for all other resources by manipulating them by way of developing, utilizing, commanding and controlling. It is the most important of all other resources. This is because manpower is that resource through which management wants to control and direct all other resources like machines, materials, money and others. An organization is nothing without people. It is true that capital technology and human force are the important elements for production. In fact, productivity is the function of a set of interrelated factors (e.g., political, social, economic, educational and cultural). Experts on productivity improvement emphasize more on people factor for enhancing productivity. They are of the view that relatively human resource is the most important of all the factors of production. Resources other than human being could produce nothing. Physical resources by themselves cannot improve efficiency or contribute to an increased rate of return on investment. It is through the combined and concerted efforts of people that monetary or material resources are harnessed to achieve organizational goals. Why is human resource superior to other elements of production? Capital can be borrowed and technology can be imported, but people cannot be bought. All the factors of production other than the workforce skills can be duplicated anywhere in the world. It is all fungible capital, technology, raw materials, information all except for one thing the most critical part, the one element that is unique about a nation, its workforce (Griffin, 1994). Fred Lutherans (2000) an organizational Behavior rightly argues it is not technology, which separates the Saturn plant of GM from other manufacturing facilities. Rather the Saturn plant represents a profound change in the way people are managed.
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Productivity is basically people-based. It is for this reason the developing countries in spite of acquiring modern technologies could not achieve higher level of productivity. The rapidity of technology transfer, access to worldwide capita! Markets and global competition reduce the traditional advantages of superior technology and isolated markets; Technology becomes inactive without work forces. It is man who works behind machine. Even in a highly automated plant, people are nevertheless required to coordinate, and control the plant's operation Workers must use them effectively. They must be motivated to provide the best quality and customer service possible. Sakurai (1989), an adviser of the Japan Productivity Center has rightly pointed out improvement of productivity through the introduction of new technology depends, by and large, on how people in the organization accept the change. To obtain desired result from the introduction of change in technology, the change must be acceptable to them". That is, acceptance of change will lie with the behavioral level of the workforce. Needless to say, machine increases the muscle power of man. Man without the machine is also less productive. They are inseparable. Labor and technology combined generate the outputs that are priced and sold to customers. As Morita, the founder and the author of Made in Japan remarks assets make things possible but people make things happen. Organizations depend on people to vow change occurs without efficient human beings. Improved productivity through people is ultimately the fountainhead of all human progress. In the ultimate analysis, it is the human factor, which will determine the final productivity of enterprise. People supply the talents, skills, knowledge and experience to Achieve the organizations objectives. Let us now explain some inherent qualities that a human being is endowed with.
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CHAPTER 4
MANAGEMENT
OF
DHAKA BANK
52
Top Management
53
BOARD OF DIRECTORS
Managing Director
EVP,
F&AD
VP, HRD
Vice President
VP
Vice President
FAVP
54
Planning
Organizing
Leading
Controlling
1. Free enterprise and a competitive market system. 2. Long-term Profitability Plans. 3. Follow businessPlans, development Programs, Marketing Plans for their day-to Day activities.
1.Organizing process under the supervision of CEO. 2.Management Activities of the top Management is organized by the CEO. 3. Account rules and procedure, business Process & safeguarding Assets are secured and Observed.
1. DBL is leaded by its management team Namely MANCOM 2. The Management team are unique.
55
56
19) Work simplification studies. 20) Monitoring diversification of portfolio among different sectors. 21) Pricing and minimum size of transaction ship.
* Group (Operations-II):
1. Overseas & International Banking Relation Department 2. Global Trade Service Department 3. Treasury Department
*Group (Operations-Ill):
1. Audit & Inspection Department
* Group Operations-IV):
1. Finance & Accounts Department 2. General Banking Department 3. Establishment Department
* Group (Operations-V):
1. Recovery Department-1
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* Group (Operations-VI):
1. 2. Monitoring Department Compliance Department
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4. Directly supervise financial institute. 5. Asset liability management. 6. Internal control and compliance. 7. Prevention of money laundering.
HRM Manager
Senior manager
Junior manager
Officer
6. 7. 8. 9.
HRM Senior officer responsibility 1. 2. 3. 4. Total staffing word processing Recording Interviewing
HRM officer responsibility 1. 2. 3. 4. 5. 6. 7. 8. 9. Salary Bonus. Incentive Staff loan Job evaluation Training Suggestion plan Employee service. Testing.
HRM Junior officer responsibility 1. 2. 3. 4. 5. 6. 7. 8. Assist staffing program. Level management. Job description. Training Orientation. Reassignment. Termination. Special program.
HRM assistant responsibility 1. Assists HRM manager. 2. Different types responsibilities of HRM related.
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CHAPTER 5
HR PLANNING
OF
DHAKA BANK
61
62
Improper HRP may lead to overstaffing increasing direct cost cost of training, amenities. Under staffing also affect a production, morale and productivity. An organization does not own person as it does capital and physical assets; this resource is seldom given proper attention. Many managers gave failed because they have taken their human resources for granted. It is one of the most critical management undertakings of this decade.
HRP is a process by which an organization can move from its current manpower position to its desired manpower position. It, then, translates the organizations objectives and plans into the number of people needed to meet those activities. Through planning management makes a balance between demand for and supply of right number and kinds of people at the right time. It is a supply and demand calculation. Manpower is an asset; it is an asset which appreciates-which grows over time. Machines depreciate as time goes on.
A manpower plan must be a set of two plans. A manpower demand plan and a manpower supply plan.
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CHAPTER 6
RECRUITMENT POLICY OF DHAKA BANK
65
6.1 Recruitment:
Recruitment is the process of finding qualified people and encouraging them to apply for work with the firm. Recruiting is the process of discovering potential candidates for actual or anticipated organizational vacancies. Or from another perspective, it is a linking activity-bringing together those with jobs to fill and those with jobs to fill and those seeking jobs.
Impress applications
Make offer
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Dhaka Bank knows that the recruitment is a complex and continuing process that demand extensive planning and effort. Dhaka Bank consider two factors for there recruitment process those factors are (1) Organizational factor (2) Environmental factors
67
Dhaka Bank thinks economic trends can influence both the number of people pursuing certain occupations and the demand for their services. In this century, the repaid pace of technology change has accelerated these trends. Dhaka Bank also think that social attitude about particular types of employment will also affected the supply of workers. If a job is considering uninteresting, oppressive or law in status applicants will shun it unless the salary are extremely attractive. Finally Dhaka Bank aware about the federal and state regulation concerning equal employment opportunity and affirmative action set the framework within which a recruitment program must function. 6.4 Managerial role of Dhaka Bank about recruitment: In Dhaka Bank responsibility for overall recruitment process normally is assigned to human resource manager and human resource staffs. They responsible for designed and implementing a recruitment program that will meet banks personal needs while complying with all legal recruitments. This responsibility include finding source of applicants, writing, and placing advertisement, contracting university, establishing procedures to guarantee equally employment opportunity and administering the fund Dhaka Bank has budgeted for recruiting. But this goal probable would not be attained without cooperation of other managers. Who are the best positions to predict the need of other own departments? They are responsible for deciding how task should be accomplished and what kinds of people are needed to fill each types of position. They can often anticipate retirements, resignation and other kinds of vacancies and can determine whether any of other current staff members are to for promotion. Typically when a vacancy occur the appropriate supervisors or managers informally or formally appraise HRM manager or HRM departments.
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6.5 RECRUITMENT AND SELECTION POLICIES OF DHAKA BANK: 1.Have they used any personnel requisition form? Which forms do the other department managers fill or suppliers for fill their vacancy?
In Dhaka Bank there is no requisition form actually when any department vacant any position, the department heads or branch in charge informally appraise that they need work people. The branches in charges or department head also mention which position vacant or which position people they need. Some times when any department or branches vacant any position or they think, they need any extra people for their operation. They formally appraise the HRM department by letter which letter they mention details. 2. Which vacant position fill from the outside and which position fill from the inside? Dhaka Bank recruits people internally for some positions and Dhaka Bank also recruits people from outside for some position. About those matters describe bellow briefly: a) Emergency situation (when the bank needs to fill any vacant position within short time) Dhaka Bank relies internal from any department or any branches which department or branches have extra employee or less has work pressure. Another side sometime bank realizes on the internal recruiting for experience position or branch in charges or superior position. Which position need experience people and truthful person and very responsible person for that position so the bank always tries to recruit a person for that position within the bank sometimes the Dhaka bank chose internal recruiting when the vacant position required more training or more orientation about
69
bank environment or job function. And those types training and orientation are very costly and time consuming. So the Dhaka Bank tries to recruit people for that position within the bank. And the bank thinks that for those types of position the internal recruiting is cost effective than the outside recruiting. Because if the bank recruit people with in the bank for those position bank need not extra training and orientation internal people. Because they have enough training for the bank daily operation and faction and they know enough about this bank and the working environment. Further the bank considers the internal recruiting for superior or managerial position when the bank see the some attractive person exist in their bank. Who have some special knowledge, expertise skill and scare skill. And bank some time depend them for many tasks and bank operation. And if Dhaka bank think or sees that he or she could be leave from the bank to another organization if they do not get promotion within short time or he\she is staying one position for the long time. So the bank considers that attractive persons to transfer higher position their leaving from the bank. b) Actually Dhaka bank consider all position for outside recruiting when Dhaka Bank are expanding day by day and Dhaka banks branches also expanding. So Dhaka bank has been needed many people for position. But internal positions are normally proper assign in different department and different branches. So Dhaka bank is unable to recruit the needed employees from the outside. The Dhaka bank normally recruits people as officer, junior officers, and seniors officers for Dhaka banks different department and different branches from outside. Sometimes Dhaka Bank recruits people as a higher position employees or attractive positions from abroad. When those position requirement qualification and skill are
70
not present in our country, Dhaka Bank realizes on abroad for recruiting those position people. Why Dhaka Bank chooses the internal recruiting for recruiting process? Dhaka Bank thinks internal recruiting is very important for their banking goose performance, effective operation and cost reduction. Dhaka Bank always considers some of the advantages of internal recruitment. Those advantages of internal recruitment are following: i) ii) iii) iv) v) vi) vii) Dhaka Bank thinks that internal employees performance in jobs are more predictable than the outside recruitment. Dhaka Bank thinks that the internal recruitment is saved more time and cost than outside recruitment. Internal recruitment also serves to raise the employees moral and improve the bank climate. Internal recruitment also encourage individual employee who are ambitious. It is good public relation. It improves the probability of a good selection, since information on the individuals performance is readily available. Dhaka Bank knows that when carefully planned, promoting from within can also act as a training device for developing middle and top level managers. Why Dhaka Bank chooses the outside recruiting for
recruiting process? Internal recruiting may be impossible to fill a position with a member of its own staff. Internal recruitment may be possible but inadvisable. If fill a gap in one department means creating an equally critical gap another. The best course may be to recruit immediately from outside.
71
Dhaka Bank expanding rapidly the banking branches are increasing day by day. So Dhaka Bank needs more people for their operation and their business. But in the bank those number people are impossible. It is impossible to collect those numbers of people from inside of the bank. Dhaka Bank knows if they emphasize internal recruiting from internal other branches or other department then other branches or other department may be falling in difficult for creating gap. So Dhaka Bank is to recruit people majority parent from the outside. Because the world is changing rapidly and technology is changing simultaneously so every organization need new technology expertise people from the outside to compete with the competitors. What are the policies exist in the HRM of Dhaka Bank for the internal recruitment? Method of internal recruiting: Generally Dhaka Bank follows two methods for internal recruiting: i) ii) Employee referral Skill inventory
i) Employee Referral: Sometimes Dhaka Bank recruits employees by employee referrals and employee recommendations. In the Dhaka Bank individuals who will perform effectively on the job is a recommendation from a current employee. Dhaka Bank HRM manager and top management like employee recommendation because employees rarely recommend someone unless they believe that individuals can perform adequately. Sometime Dhaka Bank HRM manager and top management accept department heads or branches in charge recommendations for any individual. Employee referrals also
72
may have acquired more accurate information about their potential jobs in Dhaka Bank. In doing so bank and employee benefit, the employee receives a reward and the bank receives the qualified candidate without major expense of an extensive recruiting search. Actually Dhaka Bank uses the employee referrals and employee recommendations for their shifting and dry promotion in the internal recruiting. Sometimes Dhaka bank considers the employee referrals and employees recommendations for monetary reward and monetary promotion when top management or superior recommend for any employee for his or her good performance. Otherwise Dhaka bank only transfer one position to another position or one department to another department without benefit by employee referrals or employee recommendations when HRM manager and top manager see that one department needs extra employee for their operation or more pressure and same time other department may have less pressure or extra employee. So HRM manager and top manager transfer employee one department to another department without benefit. Because Dhaka Bank thinks if they consider internal recruitment they benefit by employee recommendation or employee referrals. It could be leaded that recommences may confuse friendship with job performance competence. Because individual often like to have their friends or relative join them at their place of employment. For this reason current employee could be disappointed who are qualified or more ambitious and it could be leaded more turnover. So Dhaka Bank always aware about matters. Dhaka Bank also think that employee referrals for internal recruitment may also lead nepotism that is hiring individuals who are related to persons already employed by the bank.
73
So Dhaka Bank rarely gives employee benefit promotion or monetary promotion by employee referrals and employee recommendations for their dry promotion and only transfers one position to position among departments. Its formally communication among the managers or departments or branches can lead to discovery that the best candidate for a job is already working in a different section of the bank. This way to find applicants within the bank is through employee referrals and employee recommendations by the other departments. HRM of Dhaka Bank and top management of Dhaka Bank think that the recommended often gives the applicant more realistic information about the job than could be conveyed through newspaper advertisements. HRM department think that this types of information reduce unrealistic expectations and increase job survival. They also think that employee referrals are an excellent means of locating potential employees in those hard to fill positions. As a result of these result pre selection factors, employees referrals tend to be more acceptable applicants, to be more likely to accept of offer if one is made, and once employed, to have a higher job survival rate. For example: Dhaka Bank chooses IT professional, computer programmer by employee referrals and employee recommendations for business operations help. ii) Skill inventories: Dhaka bank HRM department developed computerized skill inventories of their employees. Information on every employees skills education background, work history and other important factors is stored in a database. It is real to identify employees with the tributes needed for a particular job. Sometime it is the managing director or managing directors things that infernal some employees or any employee are quality able or eliminable for vacant position then the managing directors or deputy managing directors chose that eligible employee for that position.
74
75
Some time Dhaka Bank advertises local paper by use blind box for outside recruitment. They do not mention their bank name. But it is rare used for their outside recruitment. Actually they use blind box in the paper advertisement for low position recruitment. Bank wise to less publicize for that position. Dhaka Bank advertises local English and bangle newspaper. They always prefer more popular and qualified papers which papers are read high-educated people. Bank can communicate accurate people for their recruiting. For example: Dhaka Bank prefers daily star, observer, prothom alo etc. Dhaka Bank of HRM department would like to make effective advertisement. So HRM manager of Dhaka Bank aware some the thing about the advertisement during newspaper advertise. Those things are following: i) ii) iii) iv) v) they provide enough information about the job so potential applicants can determine whether they are interested or qualified. They provide a job title and a description of job duties. This information draws directly from the job description. They include specific recruitments a job incumbent is require to process. It includes educational level, prior experience and specific competencies or skills. They disclose any pertinent information about job that an applicant should know about. They make sure advertise is properly written, contains no grammatical or punctuation errors, and is easy to read.
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Dhaka
bank
advertised
daily
star,
prothom
alo
this
CARRERE
OPPORTUNITY
In capital market services
Dhaka Bank Ltd, a leading private sector commercial bank providing high qualified products and services backed by the state of the art technology and a team of high motivated personnel committed to developing excellent in banking is locking for an investment banking professional to head its Capital Market Services division: HEAD CAPITAL MARKET SERVICES: VICE PRESIDENT / SENIOR VICE PRESIDENT Requirements: 10-12 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Firm knowledge about Capital market, Bond market, Merchant Banking, Issue Management/underwriting as well as adequate concept on securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Well conversant with investment products and ability to develop & executive effacement professional management strategy. Professional demeanor & strong communication skill both in verbal & written. Conceptually sound in transaction / trading on securities, brokerage & merchant banking operations (equities, bond , debentures etc) Good understanding of capital market trend analysis/ forecasting.
77
DEPUTY HEAD CAPITAL MARKET SERVICES: PRINCIPLE OFFICER TO ASSISTS, VICE PRESIDENT Requirements: 7-8 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Well conversant with investment products for raising finance. Ability to develop & executive sound Portfolio management strategy. Sound knowledge about Capital market, Bond market, Merchant Banking securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Excellent communication skill both English and bangle. Team building capability and ready to work under challenging environment.
TRADER & SETTLEMENT OFFICER: ASSISTANT OFFIXER TO SENIOR OFFICER Requirements: 2-6 years experience in the relevant field. Should be the authorized dealer. Good and Sound track record professional and educational career having masters preferably in business discipline. Computer literacy is essential. Good communication skill both English and bangle.
78
Attractive remuneration will be offered to the deserving candidate commensurate with their experience. If you are the right person, please feel free to apply along with your detail resume and recent photograph Addressed to the head of Human Resource Division. Dhaka bank ltd. Biman Bhaban, 1st floor, 100 Motijheel C/A, Dhaka-1000. Submit By, January 6, 2010. Also please mention the name of the position on the top of the envelope, for which you are applying, Only short listed candidates will be called for interview. Dhaka bank reserves the right to accept or reject my application without mentioning any reason whatsoever.
79
Now Dhaka Bank think that Internet searching program reduce the paper work and less time consuming and less costly. Because if they use newspaper advertise for their recruitment or use other methods for their recruitment, then HRM department has to more paper work for their recruiting. And they need more people for those activities. Dhaka Bank HRM in charge also thinks that newspaper advertisement and other method required more time for processing. She thinks that if they advertise on the newspaper then they have to advertise two or three local newspaper. So they receive large number of application and those large applications have to posting in computer for application screening. For those activities needed more people and more time to process it. But if they use Internet searching they do not need more paper work for their initial screening. It saves more time and paper works. It also minimizes costs. Dhaka bank has plan for future they will emphasize on one line recruiting at future. Because they think Internet line and Internet system are not expanded enough in our country. So they only use Internet searching for some types of employees recruiting.
Practice of Dhaka bank advertises at Internet: Dhaka bank advertises at Internet by the www.bdjob.com at 2nd January, 2010.
CARRERE
OPPORTUNITY
In capital market services
Dhaka Bank Ltd, a leading private sector commercial bank providing high qualified products and services backed by the state of the art technology and a team of high motivated personnel committed to developing excellent in banking is locking for an investment banking professional to head its Capital Market Services division:
80
HEAD CAPITAL MARKET SERVICES: VICE PRESIDENT / SENIOR VICE PRESIDENT Requirements: 10-12 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Firm knowledge about Capital market, Bond market, Merchant Banking, Issue Management/underwriting as well as adequate concept on securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Well conversant with investment products and ability to develop & executive effacement professional management strategy. Professional demeanor & strong communication skill both in verbal & written. Conceptually sound in transaction / trading on securities, brokerage & merchant banking operations (equities, bond , debentures etc) Good understanding of capital market trend analysis/ forecasting.
DEPUTY HEAD CAPITAL MARKET SERVICES: PRINCIPLE OFFICER TO ASSISTS, VICE PRESIDENT Requirements: 7-8 years experience in the relevant field. Sound track record in educational career having graduation/master in business disciplines. Well conversant with investment products for raising finance. Ability to develop & executive sound Portfolio management strategy. Sound knowledge about Capital market, Bond market, Merchant Banking securities & Exchange Commission and other regulatory bodies by laws, rules, regulations, and policies. Excellent communication skill both English and bangle.
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TRADER & SETTLEMENT OFFICER: ASSISTANT OFFIXER TO SENIOR OFFICER Requirements: 2-6 years experience in the relevant field. Should be the authorized dealer. Good and Sound track record professional and educational career having masters preferably in business discipline. Computer literacy is essential. Good communication skill both English and bangle.
Posting: any were in Bangladesh. Attractive remuneration will be offered to the deserving candidate commensurate with their experience. If you are the right person, please feel free to apply along with your detail resume and recent photograph Addressed to the head of Human Resource Division. Dhaka bank ltd. Biman Bhaban, 1st floor, 100 Motijheel C/A, Dhaka-1000. Submit By, January 6, 2010. Also please mention the name of the position on the top of the envelope, for which you are applying, Only short listed candidates will be called for interview. Dhaka bank reserves the right to accept or reject my application without mentioning any reason whatsoever.
c)
Unsolicited
applicants
or
curriculum
vita
placement:
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Sometime Dhaka bank recruits people by the C.V. placement from unsolicited applicants. Normally unsolicited applicants contract themselves with HRM department and they place their C.V. HRM department of Dhaka Bank receives those C.V. and they keep in file those C.V. for next recruiting consideration. Those individuals they have adequate skills and main candidates for a position in the bank. Dhaka Bank HRM department doesnt receive all unsolicited applicants C.V. they only accept that C.V. whose have special knowledge, qualification, more experience in banking sector. If Dhaka Bank HRM manager thinks an unsolicited applicants C.V. is important for their banking operation at future, then she receives that C.V. and keeps in file HRM department. When Dhaka Bank any position become vacant related with unsolicited applicant C.V. HRM manager considers that person for recruiting that position. Generally, an unsolicited applicant will have to be told that no appropriate positions are currently available. By the time a position does become open, the applicants may have accepted work elsewhere. Dhaka Bank HRM manager never careless unsolicited applicants because she beliefs sometime unsolicited applicants could be helpful to place right people to right place in their bank. She also beliefs it reduce cost of recruitment, because they dont need advertise on newspaper or Internet by pay. Normally Dhaka Bank uses this method for high-level position or experienced position not provision officer and fresh graduate or post graduate. Dhaka Bank accepts unsolicited applicants C.V. only by e-mail and in person. E-mail: unsolicited applicant can send their C.V. to HRM department by email. HRM of Dhaka Bank always check those types of C.V. if they see some or any C.V. is attractive then those C.V. are kept in their field for future recruitment.
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In person: normally unsolicited applicants come to HRM department of Dhaka Bank with their own interest and they place their C.V. The HRM department of Dhaka Bank keeps those C.V. in their file at future recruiting consideration.
d) Personal contact:
Sometimes Dhaka Bank recruits some types of employees by the personal contract with the other organization employees. Actually top management did this types contract, sometime top management of Dhaka Bank contract with other firms or other banks current employees who will leave their current job. This types personal contract recruitment only occur for superior position not others position. And it is secret recruitment process. This types of recruitment process involved only top management and HR manager.
e) Internship method:
Internship is another method which method is used Dhaka Bank recently. Now Dhaka Bank is interested to give internship opportunity to graduate and postgraduate students. Normally Dhaka Bank gives this opportunity for business students and engineers students, economics student. So students also get opportunity to gather experience from Dhaka Bank. Bank gives some remuneration to internship holder for their service. Dhaka Bank HRM thinks that it is an excellent opportunity to assess student capability and potential. Now Dhaka Bank HRM recruits people from their internship holders. Bank staffs can observe their performance capability directly. Bank assigns internship holders different branches or regional local officers and head office those office staffs internship holder and report their performance to HRM department. And HRM manager and top management select them as a regular worker to see their performance report.
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Bank HRM manager and top management selects as a regular worker from internship holders after final assessment and interview. Dhaka Bank gives internship opportunity for three to four month. Although it is expensive for the bank but bank would like to recruit qualified worker by internship method. But bank gives limited number of internship opportunity to student in a year.
Does
the
HRM
department
of
Dhaka
Bank
follow
any
recruitment alternatives methods? Yes Dhaka Bank HRM department follows two recruitment alternative methods for their operation. Those methods are following:
i. ii. Independent contractors Temporary help service
i) Independent contractors: Sometime Dhaka Bank prefers independent contractors bases job handover to individuals firm for some types of tasks in spite of direct recruiting. Dhaka Bank top management contract with individual or any firm to accomplish some types of job or task which types
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of tasks the bank are less interest to accomplish own operation. Normally Dhaka Bank may hire independent contractors to do very specific work at location on or off the banks premises. Dhaka Bank also hires individuals to do work in their bank location as a contract bases. This type of contract is time bases contract. This type contract is top-level position in the bank. bases. ii) Temporary help service: Dhaka Bank also hires individuals as a temporary bases worker for short time. Dhaka Bank thinks that sometime temporary employees are particular valuable in meeting short term in fluctuation in HRM needs. Sometimes Dhaka Bank faces some types of worker needs for short time. They think if they recruit people to do those types then they face it is expensive for the bank. Bank also observe if they hire individuals to do those tasks as a temporary bases then the bank will be more benefited than permanent recruitment. So Dhaka Bank wise to hire individual to do those tasks for the short time as a temporary bases. Normally Dhaka Bank hires temporary workers for monthly such as a three-month or six months. When Dhaka Bank faces extra pressure for their any occasion or operation; they need extra workers for the short time. That time banks hire temporary workers to do those works. For example: During the bank annual report and annual budget bank need some extra computer programmer. For example: Managing director of Dhaka Bank is doing his job as a contract
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CHAPTER 7
SELECTION PROCESS OF DHAKA BANK
87
88
What is the selection process of Dhaka bank? Dhaka Bank has some selection process. After requirement process complete Dhaka Bank selects people from applicant peoples by use those process. Those processes are following: 1. Initial screening 2. Written examination 3. Comprehensive interview. 4. Background investigation or examination 5. Medical and physical examination 6. Permanent job offers
Back ground Investigation or Examination if required Reject Applicants Medical/Physical Examination Permanent Job offers
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90
Dhaka Bank HRM department is designed the comprehensive interview to probe area that can not be addressed easily by the application from and test such as assessing ones motivation, ability to work under pressure, and ability to fit in with the bank. However, this information must be job related. During the comprehensive interview interviewers ask the applicants about the majority percent job related. Dhaka bank HRM department thinks that the topic covered should reflect the job description and job specification information obtained in the job analysis. This mean thats not only the obvious illegal questions should be avoided, so too should inappropriate questions. Dhaka Bank HRM arranges two types plan for interview to select applicants. One is Dhaka Bank HRM department arranges interview for probationary officer after completing written test. Those applicants are qualified in the written test who is invited for the interview. Dhaka Bank almost twenty percent applicants are selected for the interview after initial screening. Another side when Dhaka bank needs senior officer or experience position, HRM department arranges only interview with applicants after initial screening. Another side, when Dhaka bank needs senior officer or experience position, HRM department arranges only interview with applicants after initial screening. HRM department does not need to arrange written test for the selection. During the interview, several interviewers are present before the individual candidate. Dhaka Bank HRM department do total plan for the interview process. Dhaka bank interview plan follow some predetermined pattern where in both the questions and the expected responses are identified. The interview can also be designed to create a difficult environment in which the applicant is put to the test to assess his or her confidence levels. Background investigation:
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This step in the process is to undertake a background investigation of those applicants who appear to offer potential as employees. Dhaka Bank background investigation form is intended to verify that what was stated on the application from is correct and accurate information. This can include contacting former employers to confirm the candidates work record and to obtain their appraisal of his or her performance, contracting other job-related and personal references, verifying the educational accomplishments shown on the application. Dhaka Bank HRM department verifies an individual legal status to work in the country, checking criminal record and even using third party investigators. There is documentation that supports the premise that a good predictor of an individuals future behavior is his or past behavior. Dhaka banks HRM find out as much as possible about its applicants before the final hiring decision is made. But getting the needed information may be difficult, especially when there may be a question about invading ones privacy. Dhaka bank is conducted two methods for background investigation, the internal investigation and external investigation. In the internal investigation, Dhaka bank HRM undertakes the task of questioning former employers and personal references. On the other hand, external investigation typically involves using a referencechecking firm. However it is done, documentation is the important element. Medical and physical examination: HRM of Dhaka bank thinks that medical and physical examination indicating an applicant is physically fit for essential job performance. Dhaka bank HRM department wants medical clearance be required to indicate that the applicant is physically fit for the essential job element, bank always be able to show that it is a job related requirement.
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There is another purpose for the physical examination to show that minimum standard of health exist to enroll in bank health and life insurance program. Additionally, bank uses this examination to prove base data in case of an employees future claim of injure on the job. Dhaka bank requires applicants to submit to a drug test. One last event fits appropriately under medical examination: the drug test. Job offer: Those individuals who perform successfully in the preceding steps are now considered to be eligible to receive the employment offer. Dhaka Bank HRM department makes the final employment offer. The manager in the department and branch makes the actual hiring decisions where the vacancy exists.
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CHAPTER 8
JOB DESIGN OF DHAKA BANK
94
8.1 What types of job description and job specification HRM of Dhaka bank makes for their recruitment and selection? And which thing is involved in the job description and job specification? Job description: Dhaka Bank of HRM is to establish job description through job analysis before start recruitment and selection process. Dhaka Bank of HRM department think that a job description is a written statement of what the job holder does, how it is done, under what condition it is done and why it is done. They also belief job description include the job title, the duties to be performed, characteristics of the job, and the authority and responsibilities of the job holder. Dhaka Bank HRM department belief job description is very important for recruitment and selection process. Because job description acts as important resources for: (1) Describe the job potential candidates by in written advertisements or interviews. (2) Guiding newly hired employees in what they are specially expected to do. Job Specification: Before starts the recruitment process HRM of Dhaka Bank are to establish job specification. They think job specification states the minimum acceptable qualifications that the incumbent must process to perform the job successfully. These types of information acquire through job analysis. They establish a job specification that involved the knowledge, skill, education, experience, certification and abilities needed to do the job effectively. For every position they have to develop individual job specification through the job analysis before recruitment process. Without establish job specification they never go recruitment and 95
selection stage. HRM of Dhaka Bank belief that individual possessing the personal characteristics identifies in the job specification should perform the more effectively than those lacking these personal characteristics.
What are important of job description and job specification to Dhaka Bank?
Important of job description and job specification to HRM of Dhaka Bank: HRM of Dhaka Bank thinks that job description and job specification are helpful throughout the recruiting and selection process. It are to use in writing advertisements for job opening and writing letters to people that are in a position to refer candidates. HRM department provide its the recruiters, the selection interviewers and interviewees with a basic outline of the job for which candidates are being considered. Job description and job specification are also useful in orienting and training new employees. It provide an overview of the activities that need to be carried out, which can be explained to the employees more detail by the supervisor and training people. HRM of Dhaka Bank wants to make new employees and supervisors understand of responsibilities by job description. HRM department use it for their development of performance standards. Performance standards expanded the job description and establish in measurable terms. How well the job is to be performed. HRM department belief that job description and job specification are also relevant to the development of performance appraisal forms, which are frequently designed to include some of the major categories covered in the job description. Job description and job specification are also providing basic information for job evaluation. Because job evaluation is the process of determine the relative worth of jobs within the Bank to establish wages and salaries.
96
HRM of Dhaka Bank thinks that job description can be used to think through and develop the avenues for transfer and promotion that lead to advancement in the organization. Proper job description can contribute to a dialogue between supervisors and subordinate or group discussion when it is necessary to clarify mutual expectations.
Job Evaluation
97
Before decided Job description and job specification the HRM of Dhaka Bank is to do the job analysis. Job analysis is a systematic exploration of the activities within a job. It is technical procedure used to define the duties, responsibilities and accountabilities of a job. Job analysis can be defined as obtaining information about the job; generally job analysis involves the following steps: i) ii) iii) iv) v) Collection and recording job information Checking the job information accuracy Writing job description based on the information. Using the information to determine what skill, abilities and knowledge are required on the job. Updating the information from time to time.
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require qualification from previous job description /job responsibilities and job specification which one decided for vacant position before. Sometimes branch in charge handover senior officer job analysis activities and senior officer decided job responsibilities and require qualification through individual interview or group interview with subordinate. Deciding job responsibilities and require qualification for vacant position department in charge review that report and if correction necessary then department in charge correct the report. Finally department in charge inform HRM department specific job description /job responsibilities for the specific vacant position. Dhaka Bank job analysis steps: PRASE-1 Scope of the project: 1. decide purpose of the project 2. Decide which job to include PRASE-2 Method of job analysis: 1. Decide what types of data are needed 2. Decide identity sources of job data. PRASE-3 Data collection and analysis: 1. Collection job data analysis. 2. Report result to the organization. 3. Recheck job analysis data periodically. PRASE-4 Assessing job analysis methods: 1. Evaluation results against criteria of benefits, cost and legality.
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8.4 HOW ALL PERSONNEL FUNCTION IMPACT PERSONNEL PLANNING IN DHAKA BANK
Overall Bank Plans
Job Analysis
Is there a match? What is impact on wages and salary program? If not what types of people do we need and how should we recruit them?
1. Performance appraisal 2. Bank data banks 3. Training 4. Employee & Management development
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CHAPTER 9
TRAINING PRACTICE OF DHAKA BANK
101
102
Employee development, on the other hand, generally focuses on future jobs in the organization. As your job and career progress, new skills and abilities will be required. For example, if you become a sales territory manager; the skills needed to perform that job are quite different from those required for selling the products. Now you will be required to supervise a number of sales representatives, requiring a broad-based knowledge of marketing and very specific management competencies like communication skills, evaluating employee performance, and disciplining problem individuals. As you are groomed for positions of greater responsibility, employee development efforts can help prepare you for that day.
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Source: John W.Newstrom and Mark Lengnick Hall one Size Dose Not Fit All Reprinted from Training and Development. Copyright June 1991, What an employee already knows when hired. The left circle is what he or she needs to Know to be a fully effective employee. If the person was hired because he or she already possessed some relevant skill and knowledge, there will be overlap between the circles, and this content need not be trained. The remaining area of job skill is what the employee must learn. Some aspects of this can be learned in formally by on-the-job practice and informal coaching, whereas some should be taught formally. The formal instruction could be structured on-the-job off training, the-job classroom training, or a combination of both. Figure diagrams a job that is largely learned on the job, perhaps waiting tables in a pizza restaurant. Figure shows a job in which more off-the-job training is requiredperhaps tax return preparation. The final increment in speed, confidence, and dealing with un usual nuances always happens with on-the-job practice, but many principles and laws must first be learned in the classroom.
goals about exactly what they will do differently back on the job. Behavior modeling training - Use of videotape to demonstrate the steps in a supervisory activity such as conducting a disciplinary Interview), followed by roleplayed skill practice and feedback. Behavioral simulation-Large-scale militiaperson role-play, no computerized business game. Brainstorming-Creative Idea-generation exercise in which no criticism as allowed. Business game-Computerized business simulation that requires participants to make decisions about strategy and investments and then provides financial results based on the decisions. Buzz group- Small-group discussion of several minutes duration on an assigned topic. Case study from a non-paragraph vignette to a fifty page Harvard-style case. Field trip Guest speaker Guided teaching- Drawing from the group the points the lecturer otherwise would make him or herself Ice breaker Get-acquainted exercise. Information search- Asking trainees to locate the answers to questions in the training materials of manuals provided. Inter group exchange Small groups share their ideas or findings with another group. Learning game- Competition between teams in a quiz format Lecture Mental Imagery- Asking participants to close their eyes and visualize or recall something or engage in mental rehearsal of a physical or interpersonal skill. Outdoor leadership training- Team activities that may include hiking, rope courses or other physical challenges along with problem-solving activities. Panel discussion
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Problem-solving activities Self-assessment instrument or quiz An example is a conflict resolution-style inventory. Team building- A series of group activities and sometimes surveys used to develop team skills and role clarify in a team of people who must work together closely on the job. Videotapes- Can be used alone but are most effective if embedded in discussion and practice.
Source: Cynthia D.Fisher, James B.Shaw (Human Resources Management) Fifth Edition.
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workers during World War II, is outlined in Table. This is a proven and systematic way to teach a new task. On the negative side, OJT may suffer from frequent interruptions as the trainer or trainee is called away to perform other duties. Moreover, what many organizations call OJT is really very little training at all. Employees are abandoned on the job and expected to pick up necessary skills as best they can. Often these employees are not informed about important but infrequent events (such as emergency procedures or annual maintenance) and may learn bad habits and unsafe procedures from coworkers.
How to Instruct
Step 1 : Prepare the Step 3 : Try out Worker ease Performance perform the a. Put the worker at a. Have the worker b. Find out what he or operation.
107
she knows c. Arouse Interest correctly Operation a. Tell b. Show c. Explain d. Demonstrate
d. Place the worker points. c. Correct errors. Reinstruct as needed. Step 4 : Follow-up a. Put the worker on his own. b. Encourage questioning. c. Check frequently. d. Taper off assistance.
Source: K Wexley/G.Latham,Developing and Training Human resources Organization, 2nd Edition.
excellence in banking, DBTI conducts various courses, workshops, executive development programs mainly for officers and executives of the bank. During august 2000 till December 2009, the DBTI trained as many as 7130 participants through 291 different training programs covering all diverse courses for banking, finance, managements, law etc. DBTI has international exposure and formulated, designed and delivered 12 training courses under the capacity Building technical Assistance project of national bank of Tajikistan (central bank) financed by Islamic development bank for Assistance in formulating courses based on banking services at Dushanbe, Tajikistan during November 2005 to April 2006. Besides conventional banking related trainings; the DBTI also arranged, facilated and conducted various Executive development programs, workshops, discussion meeting and exchanged views for the improvements in banking challenges in twenty first century. Alongside normal training programs DBTI arranges short program and events and regularly visit branches and conduct different workshop. Internal and external resources persons are invited to lead the class seasons at DBTI. It has full-finished facilities with computers, IT and all modern electronic devices to accommodated 50 trainees at a time. DBTI has a library with more than 1,050 books covering all sides of banking needs. The DBTI library has professional linkage with many organizations at home and abroad. As a complete training institute, DBTI not only train staff of Dhaka bank but also renders training service to other bank as well. The DBTI maintain constant liaison with universities/ other organization / training institute for keeping itself updated with recent changes / development in relevant areas and also for necessary dissemination there of among their working at field level. Dhaka bank training institute has been working with its full dedication & efforts ans continuous support from Broad of directors and management to provide Excellence in banking through development of attitude, knowledge and skill keeping in view the
109
organizational goals and economic prosperity of the country in the background of present globalize world in 2009, DBTI has conducted 45 courses involving 1173 participants. Details of Executive development program/ training course/ workshop on Dhaka bank:
sl 1 Title of course Dhaka bank Savings bundle project Course 4 Practices 106
Workshop on SBS-2 & SBS-3 Balance of Payment & reporting of Foreign Exchange transactions to Bangladesh bank Automated Clearing house
52
20
56
26
51
26
80
Workshop on UCP600
28
10
25
11
32
12
23
13
55
110
14
Orientation and Basic Banking Workshop on Professional Skill Development & Anti-money laundering issues International Trade finance & Foreign Exchange Executive Development program on Fund management & product development Presentation on Automated Clearing Module Under BACH
33
15
15
286
16
26
17
32
18
16
19
21
20
15
21
Foundation Training for banker course Islamic Banking-conducted by Central shariah Board for Islamic Banks BASEL II : Technical issues, challenges and Implementation Initiative
37
22
30
23
47
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CHAPTER 10
INTERNAL STAFFING PROCESS
OF
DHAKA BANK
112
10.1.1 Transfer:
In the bank, employees may be reassigned, or asked to transfer, from one job to another, one department to another, one branches to other branches. These reassignments may be initiated by bank or by the employee with the approval of the bank.
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HRM of Dhaka Bank has specific policies and procedures that have been developed mainly in response to some problem situations. They see that one problem may be needed to ensure a close match between an employees qualifications and new position. So HRM department is to transfer employees to make certain that his or her qualifications suit the new job before appraisal of the employees performance and potential. It does not make sense to be careful about initial hiring and then to casual about a transfer later on. HRM of Dhaka Bank play important role in this type of appraisal process by helping to development through procedures and then monitor transfer to make certain branches managers and department heads are using those procedures appropriately. Another problem is that sometime arise employee with poor performance or problem behavior whom department head and branches managers are less interested to keep on staff. For this problem HRM department is to resign that employee from one department to another or one branch to another to adjust his or her qualification and department activities. Some time some department head or branch managers are willing to accept those employees. HRM of Dhaka Bank is to evaluate carefully to make sure that the transfer is fair to everyone involved and that the interests of the total bank.
10.1.2 Promotion:
Dhaka bank developed promotion policies based on employee performance appraisal. Dhaka bank promotes employees on the basis of their performance and their potential. So Dhaka bank is to appraise employee before give employee promotion. How does Dhaka bank appraise the employee for their
promotion? Dhaka bank HRM department prepared an assessment from for their employee appraisal. And they are to give this assessment from to every branches and every department, immediate supervisor or boss and is responsible to fill the assessment form. This 114
assessment from mentions the employee job behavior, their potential, their daily duty record system, their misbehavior, honesty and dishonesty. The bank employee are appraised on the bases on those characters. Reporting boss or immediate boss give a comment about the employee on the assessment form after filling the assessment form. after filling the assessment form by the reporting boss, the branch manager or department in charge check the assessment form and they give final recommend about employee. Dhaka bank HRM department receives those assessment forms and they screen the assessment form and finally they send qualified employees form with recommend to the top management. The top management cheeks the assessment form and they arrange interview with qualified employees for their promotion by the HRM department. In Dhaka Bank, there are three types assessment from for appraisal, such supporting stuff assessment form, executive assessment form, and officer assessment form. Supporting assessment form uses to appraisal for the supporting staffs. Executive assessment form uses to appraisal for the officer position to top-level officer. These types of appraisal occur in Dhaka bank yearly.
10.1.3 Demotion:
Some time Dhaka bank is to task disciplinary action against employee as the part of demotion.
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Leon C Megginson (1970), term discipline bears all of the three meaning in its practical purpose or use: 1. Self discipline is the training that corrects, molds, and strengthens perfects. in this sense, it refers to the development of an individual, i.e. his or her efforts at selfcontrol for the purpose of adjusting himself to certain needs and demand. 2. The necessary condition for orderly behavior it considers discipline as the condition necessary to obtain orderly behavior in an organization. This implies keeping order and individual employee control among a group of worker by using method that builds moral and esprit de corps. 3. The act of training and punishment this concept considers discipline as a judicial due process based upon training and punishing. Thus discipline is a form of punishment, which a person incurs as a result of an undesirable act. Its function is not change past behavior but to prevent a recurrence of the act in the future.
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management to determine what constitutes misconduct before trying to rebuild his or her habit.
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can be cancelled and the charges quashed; (c) if the management is not satisfied with the explanation, or if he contests the charge by pleading not guilty, a formal enquiry is order is ordered. 4. Issue of show cause notice by the disciplinary authority/committee. The accused is issued a show case notice giving minimum three days time to explain further his point of view. 5.notice of holding enquiry: a notice is given served to the accused employee giving time, data and venue place together with the name of the enquiry officer where in such an enquiry will be convened and the accused is given personal hearing, if such a prayer is made. The enquiry officer must not be one who has issued the charge sheet because it is a principle of natural justice that a person is disqualified to act as a judge if he is a arty to the dispute. 6. Enquiry procedure: the enquiry officer will conduct the enquiry on the preset time, data and place in the place in the presence of the charge sheeted workman. The enquiry officer should explain the charge sheet to the accused workman. If the accused workman pleads not guilty the enquiry should be preceded. If his pleads guilty in writing, the enquiry need not preceded. The accused is given full opportunity to crossexamine witnessed and documents produced by the management. He allows bringing his own documentary evidence and witness. The enquiry officer takes down the proceedings properly and records them. The enquiry must be fair and accused is given reasonable opportunity to defend himself. The enquiry officer must submit his report stating charges that are substantiated by the evidences and those which are not. He may then recommend the nature of action to be taken. 7. Decision: management will take necessary action with or without considering the recommendation made by the enquiry officer but that deemed fit in the case. A due consideration is given in accordance with the standing orders. The orders of punishment should be served to the accused workman on due process. The management can be divided under the following categories: 118
a. Oral warning b. Written warning c. Suspension d. Demotion e. Fine/ pay cut f. Discharge or dismissal g. Withdrawal of increment h. Suspension increment i. Adverse remarks on the service book j. Censure or simple reprimand.
The punishment should be appropriate to the gravity of the offence. It should be such as would prevent a recurrence of the offence. 8. Follow up: a disciplinary action should be evaluated in term of its effectiveness, after it has been taken. It is necessary to keep vigil to know the effect upon the punished employee.
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Dhaka bank is to fire dishonesty employee. Because who work in branch they is to deal cash with the client, so they must be honest. If any employee seems to be dishonest and Dhaka bank does investigation about those types of cause and if finally the employee is proved his or her guilty then Dhaka bank take an action through the employee labor standing act 1995 and finally guilty employee.
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CHAPTER 11
PERFORMANCE APPRAISAL OF DHAKA BANK
121
122
Method of PA
Communicating
Performance
standards
The appraisal process begins with establishment of performance standards in accordance with the organization's strategic goals. Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. To be effective standards should relate to the desired results of each job. Job analysis uncovers specific performance standards by analyzing the performance of current employees. To hold employees accountable, a written record of the standards should exist and employees should be advised of those standards before the evaluation occurs. If performance standards are not job -related, the evaluation can lead to inaccurate or biased results; harming the mangers' relationship with their employees and violating equal employment opportunity rulings. Performance evaluation also requires reliable performance measures, the ratings used to evaluate performance. To be helpful, they must be easy to use, be reliable and report on the critical behaviors that determine performance. Performance measures also may be subjective or objective. Once performance standards are set, it is necessary to communicate these expectations; it should not be part of the employees job to guess what is expected of them. Employees
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can be involved in setting standards. It is important to note that communication is a twoway street: mere transference of information from the supervisor to the employees regarding expectations is not communication. To make communication effective, feedback is necessary from the subordinates to the manager. The next step in the appraisal process is the measurement of performance. To determine, what actual performance is, it is necessary to acquire information about it. \VE should be concerned with how we measure and what we measure. Managers regarding how to measure actual performance frequently use four common sources of information: personal observation, statistical reports, oral reports, and written reports. The fourth step is the comparison of actual performance with standards. The point of this step is to note deviations between standard performance and actual performance so that we can proceed to the fifth step in the process- the discussion of the appraisal with the employees. A necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interviews are performance review sessions that give employees essential feedback about their past performance or future potential. Without feedback, improvement in human behavior is not likely and the HR department will not have accurate records in its HR information system on which to base decisions ranging from job design to compensation. The evaluator may provide this feedback through several approaches: tell and sell, tell and listen, and problem solving. Managers must create a supportive environment to put employee at ease. Presenting an accurate assessment to the employee is a challenging task. The discussion of the appraisal can have negative as well as positive motivational consequences. The final step in the appraisal is the identification of corrective action where necessary. Corrective actions can be of two types: one is immediate and deals with symptoms, and the other is basic, which deals with causes.
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Performance appraisal is the formal, systematic assessment to how well employees are performing their jobs in the relation to established standards and the communication of that assessment to the employee. As the opening cases indicate, this process is of great important to the employee involved. Moreover, the results of performance appraisal also have a significant impact on the human resource process.
Performance Feedback
Performance Appraisal
Promotion Decision
Job evaluation
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Performance review is followed by self -appraisal. In this part employees usually write some general comments about his/her job, achievement and goals. The next part is the most vital part. It is the competence review. Here both technical and management skill of an employee is judged. For technical skill, mainly computer skill, language skill and knowledge regarding basics of banking (laws, regulations, calculations) are rated. For computer skill, the following issues are rated: Overall competence in computer skill like MS office programs, web browsing and email Competence in Flex Cube (the system software used for retail and corporate transactions and gathering information from the information center) module. Complete knowledge, speed and problem solving capabilities are judged. Both written and spoken fluency is rated. Mainly report writing, correspondence and presentation skill is appraised. Management skill: For the position ranging from assistant officer to senior principal officer, employees are evaluated according to a set of predetermined factors like self-confidence, customer orientation etc. Basing on the performance review and competence review, the appraiser writes down the most applicable grade to the employee. The appraisal then signs it. The appraisal can be recommend either for both promotion and increment or any one of the two. From general practice, it is known that an employee is not recommended for promotion unless Two years have passed since last promotion and Two years have passed since confirmation of employment (applicable for Trainee assistant officer, Trainee assistant cash officer and probationary officer) In the part of overall summary the appraiser writes a brief narrative describing the employees strengths and weaknesses. It is followed by comments by appraisers manager/supervisor (in
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this case branch manager of Dhanmondi branch). This includes comments regarding employees potential and transferability across different functional departments. The higher authority (head OF HR or Managing Director) expresses his/her comments concerning the employee. Finally, the appraise writes down comments after reviewing the overall appraisal. An employee has all rights to disagree with the grades given by the appraiser. The disagreement can either be resolved through discussion between appraisers and appraises or the matter may be carried forward to the Human Resources department. Basing on the overall competence review (technical and management skill) the appraiser recommends necessary training and development requirements to facilitate better performance of the employee. For example: in the foreign exchange department of Dhanmondi branch, the in-charge has recommended an extensive training of fifteen days on foreign trade for two employees conducted by BIBM. Apart from that, one employee was recommended to have training on SWIFT. Because, nowadays all sorts of L/C and other inter-bank correspondence (locally and internationally) is done through SWIFT. Besides, employees also participate on short trainings and daylong workshops. After the completion of the whole appraisal process, the appraisal forms are returned to the Human Resources department for documentation and follow up.
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For some technical and management skill, Behaviorally Anchored Rating Scale (BARS) can be a very good alternative. It is more detailed and redefined version of the rating scale. Detailed analysis of a job and a precise identification of specific effective and ineffective job behaviors are mentioned in the appraisal form. As each job is carefully judged and identified it is a more objective method than other methods because behavioral statements are stated rather than vague descriptions of performance. Descriptive statements for each level of performance for each job factor is identified and then arranged on a scale in rank order. In this report, the scale provides for five descriptive statements for each performance factor. The scales are defined in the following: 5 Clearly outstanding performance 4 Good 3 Satisfactory 2 Below satisfactory 1 Poor Some technical and managerial skills are evaluated in BARS method in the next page: Job: Officer, Foreign Trade department Technical Skill: Functional knowledge Factor: Maker of retail and corporate module in Flex Cube 5 performance 4 Excellent Has complete knowledge in Flex Cube; Very fast and efficient in Meets all targets, exceeds some Meets all set targets on time Little shortfall in a few targets, but met others Could not meet any target Meets all targets and greatly exceeds some
Clearly outstanding processing transactions in retail and corporate module. Has good knowledge of Flex Cube and efficient in processing transaction in it.
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Has knowledge of own field; can do the transaction processing correctly with moderate time. Can process transaction in Flex Cube module but needs assistance.
Slow in transaction processing, as a result L/C operation does not run smoothly, takes more time to complete the process.
Performance System software in which all sorts of transaction (retail, corporate) are processed and all previous transaction lists, statements etc are recorded.
Management skill: Communication Skill Factor: Follow up with PSI companies, timely submission of all related statements to head office/ Bangladesh bank; Regular correspondence with all related parties of L/C. 5 Clearly outstanding Can prioritize work, submits related statements before due date and maintains continuous correspondence with the remitting bank, beneficiary and other related authorities.
performance Maintains timely follow up with all concerned parties, send statements 4 Excellent correctly and on time performance Able to do all the works with moderate time. 3 Satisfactory performance Sends statements correctly to concerned parties but sometimes needs 2 Moderate supervisors reminder. performance Not able to do all the works by himself/ she takes others help; cannot 1 Poor performance Managerial Skill: Customer orientation prioritize work and needs continuous guidance from supervisor.
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Factor: All transactions related inward remittance through cash payout system, issuance of foreign draft, dollar endorsement and travelers cheque 5 Clearly outstanding Highly efficient in performing all tasks; Can meet all customer queries in time and follows up on those; provides fast service to the customers; has a friendly demeanor.
performance Efficient in performing own duties; Volunteers relevant information 4 Excellent and good services to customers; meets customer queries with a smiling performance face. Provides necessary service and information to the customer properly. 3 Satisfactory performance Provides reasonable service to customers; can not always answer all 2 Moderate customer queries (because of either knowledge gap or for not being performance able to prioritize) Not able to provide customer service properly; often makes mistake; 1 Poor does not have the right disposition to handle different types of performance customers.
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Factor: Issuance of local and foreign L/C; follow up and adjustment of payment instructions; reimbursement; proceed realization; scrutiny of shipping documents; lodgments; retirement and all related accounting entries. 7 Clearly outstanding performance 6 Excellent performance 5 Satisfactory performance 4 Neither nor bad Not able to identify all the problems in shipping documents and reluctant to take part in sharing responsibilities. Very efficient and prompt in performing all function and maintains proper coordination among other team members who share the responsibilities. Efficient in performing all the functions, effort in coordinating activities and sharing responsibilities are appreciable. Able to do all the works, sometimes takes assistance of others in scrutinizing the shipping documents, team members rarely expresses dissatisfaction about improper coordination and sharing responsibilities. Slow in doing works, team members sometimes complain about good improper coordination
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Factor: Assisting others when required, solving problems collaboratively; Dependable, supportive, reliable, goes out of way to assist, In absence of one of the team member managing daily responsibilities of that person in addition to own works. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 bad performance 1 Poor performance Extraordinarily dependable, supportive, reliable, goes out of way to
assist; Maintains proper coordination among other team members who share the responsibilities.
Dependable and supportive; Maintains coordination among work team; Gives effort to strengthen team spirit. Effort in coordinating activities and sharing responsibilities are appreciable. Team members rarely express dissatisfaction about improper coordination
Neither good nor and sharing responsibilities. Team members sometimes complain about improper coordination; reluctant to take responsibilities of peers in case their absence (Sometimes not have the intention and sometimes can no allocate time for being slow work)
Furthermore, an external customer feedback can be done so that appraisers comments can be re- checked (whether positive or negatively biased). These feedback forms can be given to some valued clients for their comments. Similarly, internal customer feedback can also be taken from the superiors, peers and subordinates of it and other functional departments. A sample form is given in the next page
INTERNAL/ EXTERNAL CUSTOMER FEEDBACK As an internal/ external customer of (name) ___________________________ please give him/ her feedback regarding his/her work performance and work behaviors. After you have completed this form,
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send it to _________________________ your responses will be tabulated and then discussed with the individual. To what extent did this individual meet your expectations of work quality in areas you indicate as important:
Exceeds Meets Doesnt meet 1. Accuracy of the work you received 2. Timeliness of the work you received 3. Dependability of the work you received 4. Sharing relevant information to help you do your work more efficiently In terms of your interactions with this person, please feel free to comment on any of the following: 1. The type of errors and the amount of rework 2. The nature of any work delays 3. Interpersonal work behaviors 4. Collaborative efforts to improve work or business process
Please state any new expectations that you have regarding the work you receive from the person.
Thank you for completing this form We know, 360 evaluations is the most perfect way of appraising employees. Though it is time consuming, this can be started on a pilot basis to see whether the ultimate result differs in the two different processes. If the difference is significant, then proposed changes can be considered as essential to revise the existing system.
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11.4.2 PERFORMANCE APPRAISAL FOR ASSISTANT VICE PRESIDENT ANALYSIS OF EXISTING PERFORMANCE APPRAISAL FORM Similar to the performance appraisal form of assistant officer to senior principal officer, first part is performance review. An agreed key task that consists of profit, deposit, advance, bank guarantee etc is determined followed by a discussion between the apprisee and the appraiser (in this case, the branch manager of Dhanmondi). This approach is known as management by objectives. It utilizes employee participation in setting in setting meaningful, attainable tasks and personal objectives for each individual. The key factors of setting up targets are mentioned in the previous section. For the case of foreign trade department, fulfilling L/C target becomes much easier when some reputed business organizations maintain their respective L/C operations through a particular bank. In Dhanmondi branch of Dhaka Bank Ltd, The Acme Laboratories and The Acme Agro vet and Beverages Ltd are two companies that frequently import raw materials for their concerns. Besides these, some other clients are Flora Ltd, Gonoshasthaya Antibiotics and J.A.N Associates. All these are considered as very valued clients. Performance review is followed by self -appraisal. In this part executives usually write some general comments about his/her job, achievement and goals. The competence review is the most essential part. Here both technical and management skill of an employee is judged. Like the technical skill of assistant officer to Principal officer, it is very important for this position also. Basing on the performance review and competence review, the appraiser writes down the most applicable grade to the employee. The appraisal then signs it. The appraisal be can recommend either for both promotion and increment or any one of the two. From general practice, it is known that an employee is not recommended for promotion unless Two years have passes since last promotion and
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Two years have passed since confirmation of employment (applicable for Trainee assistant officer, Trainee assistant cash officer and probationary officer)
All other parts in the form are same as the previous one. At this level, training programs are not arranged as frequently as it is arranged for the level of Assistant officer to Senior Principal officers. Rather different types of day long seminar, workshops etc are arranged for them. Training is arranged when there is any major change in the laws, regulation, operation module etc. For example all in-charges of foreign trade participated in the training on UCPDC (Uniformed Customs and Practice for Documentary Credit) 500. The organization structure is pyramid shaped. For that upward mobility is comparatively slow in this level. In Dhaka Bank ltd, there is a tradition that employees get promotions on every two years. But this is not applicable for the position of AVP and above. Some executives who perform extraordinarily well, gets promotion in 2-3 years, but these are rare incident.
PROPOSED CHANGES IN FORMAT, PROCESS AND MANAGEMENT PHILOSOPHY In the earlier discussion, the definition of BARS and its advantages were described. Some technical and managerial skills are evaluated in BARS method in the following: Job: In charge (First Assistant Vice president), Foreign Trade department Management skill: Resource management Factor: translates strategic plans in to work assignments, facilitate the process of achieving targets of the branch.
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5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance
Successfully performs the job of planning and allocating human and monitory resources, which fulfill the ultimate objectives of target achievements and even exceeds profit target. Efficient in performing all the functions, can prioritize the allocation of resources where necessary; Sometimes exceeds profit Takes initiatives to do the jobs properly and meets the target
May face problem in resource planning and prioritizing its allocation Lacks ability to plan and allocate resources, cant fulfill the targets.
Management skill: Leadership Factor: Assigning jobs for the officers of foreign trade department and supervise their activities and evaluate their performance 5 Clearly outstanding Successfully assigns jobs to the officers, resolve conflicts in collaborative way, supervise their activities, boost team spirit and appraise the subordinates accurately
performance Efficient in assigning jobs and as a mediator of resolving conflicts; 4 Excellent possess required supervisory skills. performance Can do all the duties properly and try to develop team spirit 3 Satisfactory 137
performance May face problems while assigns jobs and resolving conflicts which 2 Moderate results in lack of coordination in team work performance Subordinates complain about the leadership skill, biasness in conflict 1 Poor performance resolution and supervising ability of the manager.
Management skill: Communicating Factor: All overseas correspondence/ communication related to foreign trade, represent own work unit, develop relations with other managers, and communicates the needs of the work group to others 5 Clearly outstanding Possess excellent communication skillcompletes all sorts of correspondence promptly and successfully, maintain very good relation with other functional departments. good communication skillcompletes all sorts of
communications properly and on due time, has good relations with all
performance in the branch Able to perform all the activities but not prompt 3 Satisfactory performance May face problems in coordinating activities with other departments. 2 Moderate performance Poor in communicating with others, sometimes seek assistance of 1
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Poor performance
Management skill: Business development and customer orientation Factor: Develop and maintain relationship with clients, participate in task forces to identify new business opportunities. 5 Clearly outstanding Personally visits potential and existing valued clients to show the eagerness to serve them and find new avenues for business development
performance Visits only existing valued clients and provide some extra services 4 Excellent when they come to branch. performance Does not give personal visits; Takes initiatives to expand business 3 Satisfactory through providing good quality services to the clients performance Does routine marketing and business development jobs; not serious 2 Moderate about extra initiatives. performance Depend on the past good will of the bank for further business 1 Poor development, no proper effort or initiative is visible, no special performance behavior with the clients is observed
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Management skill: Functional capability Factor: Authorizer of all transactions related to foreign exchange, scrutinize L/C proposals; in absence of operations manager the duties are transferred to him. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance For this level of hierarchy, major duties are managing individual performance, coordinating interdependent groups to ensure that the subordinates are meeting external 140 Has complete knowledge about all the related transactions and accounting entries, can check and authorize transactions very swiftly and Can identify makers mistake very quickly. Efficient in managing tasks of other departments when necessary. Has complete knowledge about all the related transactions and accounting entries, authorizations are done timely. Has knowledge about all the related transactions and accounting entries, authorizations are done timely Does routine jobs, does not feel comfortable while taking over charges of other departments Slow in doing works; lack knowledge of swiftly operating the Flex cube module, sometimes cant identify mistakes of the makers.
and internal customer needs and ensure uniformity in interpretation of policies and procedure. To make the appraisal process more transparent, neutral and accurate both internal and external customer feedback can be taken, but this form will differ from that of the junior level. This will check the positive or negative biasness of the appraiser (the branch manager) The internal customers can be the executives of the other functional departments. And the external customers can be senior officials of the valued organizations who have extensive L/C operations with the bank. A sample form is given below:
INERNAL/ EXTERNAL CUSTOMER FEEDBACK As an internal/ external customer of (name) __________________________ please give him/ her feedback regarding his/her work performance and work behaviors. After you have completed this form, send it to _________________ Your responses will be tabulated and then discussed with the individual. To what extent did this individual meet your expectations of work quality in areas you indicate as important: Exceeds Meets Doesnt meet 1. Accuracy of the work you received 2. Timeliness of the work you received 3. Dependability of the work you received 4. Sharing relevant information to help you do your work more efficiently In terms of your interactions with this person, please feel free to comment on any of the following: 5. The nature of any work delays 6. Interpersonal work behaviors 7. Collaborative efforts to improve work or business process 8. 141
Please state any new expectations that you have regarding the work you receive from the person.
We know, 360 evaluations is the most perfect way of appraising employees. Though it is time consuming, this can be started on a pilot basis to see whether the ultimate result differs in the two different processes. If the difference is significant, then proposed changes can be considered as essential to revise the existing system. 11.4.3 PERFORMANCE APPRAISAL FOR EXECUTIVE VICE PRESIDENT The appraisal form of Assistant Vice President (AVP) and Executive Vice President (EVP) are same. To avoid redundancies the detailed analysis of the appraisal form is not mentioned in this section. Only the performance review and competence review section is analyzed and changes are proposed accordingly. The EVP is the branch manager of Dhanmondi branch. 11.4.3.1 PERFORMANCE REVIEW The tasks and personal objectives regarding profit, deposit, advance, bank guarantee etc are determined through a meeting with Managing Director and head of Human resources in Head Office. The managing director of the bank is the appraiser for this position. Branch profit and other targets are also set there .The key factors for setting these targets are Location of the branch Availability of customers Market trend
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In Dhanmondi branch the targets are ambitious because of availability of large number of customers who deposit handsome amount of money. Moreover, there is provision of getting large number of salary accounts, deposit for employee provident fund etc because many schools, universities and corporate bodies are located around Dhanmondi branch. Regardless of the business opportunities, some threats are also involved in it. There is always constant threat of losing deposits. Because, nowadays banking business is very much competitive and competitors always offer interest rate, lower operating charges for different accounts. For deposit amounts like more than one crore difference is huge even if the interest varies for .25%. 11.4.3.2 COMPETENCE REVIEW This is more or less same as that of AVP position. So both technical and managerial skills are judged on simple rating scale, which has five categories. PROPOSED CHANGES IN THE FORM AND PROCESS Managerial skill: Leadership Factor: Assigning jobs for all the officers in all the available departments, developing a vision of future and formulate strategies to achieve that; motivating, energizing and influencing the behavior of other employees 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 143 Successfully assigns jobs, develop vision and can motivate employees towards that can influence employees behavior. Has the ability to translate strategies into action. Possess the ability to assign right job to the right person, Can develop appropriate strategies. Does routine jobs, but no extra effort is given.
Sometimes faces problems while assigning jobs (can not put right person on the right position) that results in job dissatisfaction among employees Lacks the ability to motivate employees and can rarely influence their behavior.
Managerial skill: Business development Factor: Monitoring the business environment by analyzing business trends, developing relationship with clients and overseeing sales and marketing activities 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance Successfully performs all duties to achieve branch target; regularly review profit position and take necessary initiatives to achieve that; often profit exceeds target; and can explore new business avenues. Takes decisions basing on the market trends, supervise the sales and marketing activities. Performs well and proceed with a view to achieve branch target. Gives necessary efforts for business development. Sometimes face problems in carrying out duties that negatively
affects target achievement. Lacks proper knowledge of business development; no effort is given towards customer relationship and supervision on marketing activities.
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Factor: Pursuing the existing customers to strengthen the relationship and influencing new customers to get service from the bank. 5 Clearly outstanding performance 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor performance To sustain the business manager often depends on exercising the discretionary power. Lacks proper knowledge and influencing capability to retain customers, consequently customers switch to other competitors. Does routine jobs to retain customers but no extra effort is given. Can successfully pursue the valued clients to gather huge deposit and advances and minimum use of discretionary power (to enhance interest rate for FDR, to reduce l/C margin etc. which increases the cost of fund) Can pursue the valued clients and rarely use discretionary power.
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Factor: Authorizer of all transactions related to all departments when necessary; responsible for compliance of anti- money laundering activities; follows up KYC (Know your customer) updates; works as an internal auditor of the branch; and ensures timely submission of all statements to Bangladesh Bank 5 Clearly outstanding performance Has complete knowledge about all the related transactions and accounting entries, can check and authorize transactions very swiftly and Can identify makers mistake very quickly; supervises and gives reminder in advance to all the departments to submit all sorts of statements timely and accurately and successfully meets the 4 Excellent performance 3 Satisfactory performance 2 Moderate performance 1 Poor audit compliances. Has complete knowledge about all the related transactions and accounting entries; supervises the procedure of submitting all sorts of statements timely and accurately and meet the audit compliances properly. Has knowledge about all the related transactions and accounting entries, able to meet the audit compliances Gives effort to perform all the duties but face problems in prioritizing works and consequently cannot keep balance of all the activities Slow in doing works; lack knowledge of swiftly operating the Flex cube module, often fails to supervise KYC and other compliances.
performance Managerial skill: Resource management This will be almost same as the appraisal process of AVP, but an AVP plans and allocates resources for his/ her own department but a branch managers responsibility is much more than that. S/he deals with all the departments in a branch and allocates resources accordingly.
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CHAPTER 12
COMPENSATION MANAGEMENT OF DHAKA BANK
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Ideally, a reward system should align individual objectives with important strategic goals of the organization, but for most organizations, the reality falls far short of (his ideal The design and implementation of a compensation system constitute one of the most complex activities for which human resource managers are responsible. The intricacy of compensation inspired the observation by one researcher that "reward systems are one of the most prominent and frequently discussed features of organizations."3 The following are some of the factors that contribute to this complexity:
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While other aspects of human resource systems (e.g., training, career management, appraisal systems, and quality-of-work-life programs) are important to some employees, compensation is considered crucial by virtually everyone.
One goal of a compensation system is to motivate employees, yet there is tremendous variation in the value different individuals attach to a specific reward or package of rewards. Further, an individuals values also may change over time.
The jobs in most organizations involve an almost endless variety of knowledge, skills and abilities and are performed in situations with a wide range of demands. Compensation systems consist of many elements in addition to pay for time worked; these components must be coordinated to work together. Employee compensation is a major cost of doing businessup to 80 percent for service firmsand can determine the competitiveness of a firm's products or services.
A number of federal and state regulations affect compensation systems. Employees, either directly or through collective bargaining arrangements, may desire to participate in the determination of compensation. The cost of living varies tremendously in different geographic areas, an important consideration for firms with multiple locations.
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Compensation System
Indirect Compensation
Direct Compensation
Base Pay
Merit Pay
Salary
Wage
Protection
Program * Medical Insurance * Life Insurance * Disability Income * Pension * Social Security
Services Pay for time Not Worked * Vacations * Holidays * Sick leave *Jury duty * Recreation Facilities * Car * Financial Planning * Low-cost or Free meals
Incentive Pay * Bonus * Commission * Place rate * Profit sharing * Stock option * Shift differential Deferred Pay
* Savings plan
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Here we mention the methods and techniques to motivate employee in the organization. Pay, Job enrichment, Job rotation, Work at home, financial incentives, Flexible working hours, Work sharing, Promotion, Giving responsibility, Autonomy and freedom Here we mention the determinants of pay rates: Pay structure of other organization in the industry. Organization capacity to pay. Employees performance. Skill based pay. Sweet-will of the employer. Here we mention how the employees in this organization are motivated.
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Methods used Financial and work environment Financial and work environment Financial factors
Impressive job title and option for casual dress up these are the non-financial Incentives are available to the organization member. By at once meeting it is the procedure of Grievance handling in this organization. The organizations have health and Safety plan. Every employee in this organization has determined the healthy and safety requirement. The financial Incentives are available to the organization members- Stock ownership, Production incentive bonus, Award for outstanding performance- Special increments, Sales Bonus, Commission for sales person, Compensation for outstanding performance, Cost reduction. Here we mention the benefits and Service are available to the organization members. House rent allowance/rent free accommodation. Car/Conveyance allowance. Medical allowance. Bonus Leave with pay. Loan for purchase of car/house. Sick leave. Maternity leave. Marriage leave. Compensation for short-term disability.
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12.3.1 Festival Bonus The Bank will continue to pay two festivals bonus equivalent to one-month basic salary of an individual employee per annum as bonus to its permanent employees. 12.3.2 Incentive Bonus The Bank pays incentive bonus on the basis of profits of the bank that basic salary of an individual employee per annum to its permanent employees. An employee who has completed at least six months of continuous service in a year will be eligible to receive full payment of bonus. An employee who has not completed six months of service in a particular year will be paid bonus on pro-rata basis. 12.3.3 Provident Fund The Bank agrees that the rate of employees contribution to the Provident Fund shall continue to be10% of his basic salary month and the Banks contribution to the fund in respect of each employee shall be equal to the employees contribution to the fund. On completion of 5 years service, the contribution of the employee and that of the Bank will increase to 10% of the basic salary. 12.3.4 Gratuity The Rules prescribing payment of gratuity shall be called The Dhaka Bank Limited payment of Gratuity Rules, hereinafter called Gratuity. The following Rules shall apply to all employees of the Bank:
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i. ii.
The object of gratuity is to remunerate the concerned employee for the past services rendered to the Bank. The Bank shall cerate a gratuity fund as and when required for adequate amount for the purpose. All gratuity payments shall be made from appropriate expenditure account until such fund is created.
iii. iv.
Subject to the other provisions of these rules, an employee who has completed 05 years continuous active service shall be entitled to gratuity. The gratuity shall be paid at the rate of two months basic salary for each completed year of service or in excess of six months will be treated as one year for the purpose of calculation of gratuity.
v. vi.
The basic pay for the purpose of calculation of gratuity shall be the basic pay drawn by the employee concerned in the immediate last month. Notwithstanding anything contained herein above, the gratuity may be paid at the discretion of the competent authority to an employee who has not completed 5 years of active service.
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CHAPTER 13
SWOT ANALYSIS
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SWOT Analysis
The Financial Condition of DBL is very strong. Its Loan and Deposit Quality is
better than most other Private Commercial Banks in Bangladesh.
DBL has strong network throughout the country and provide quality services to
every level of Customers.
DBLs Correspondents Relationship with more than 200 International and Local
Banks created Global Accessibility and Relationship with People.
ATM Cards of DBL give the Customers 24-hours Banking Facilities from his/her
Accounts.
Phone Banking of DBL gives the Customers, opportunity to make Enquiries and
Service Request over the Telephone.
Cash Advance from Credit Cards of DBL attracts more Customers to interact with
the Bank. Weaknesses of Dhaka Bank Limited
One of the greatest weaknesses for Dhaka Bank Limited (DBL) is the Shortage of
Manpower in every Division. During the Working Hours of the Bank, the Employees have to be fatigued and cannot provide proper attention that type of Services, which create dissatisfaction of the Customers.
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Higher Service Charge in some areas of Banking Operations than that of the
Nationalized Commercial Banks discourage the Customers for opening and maintaining Accounts with DBL.
Growth in Assets of a Bank depends on hoe fast its Deposits grow. But in the
Deposit side DBL is facing some problems from its Competitors. Because the Competitors are giving a Higher Interest Rate in Deposits without any reason, which could be deteriorated its Position than before. Because of this a lot of Depositors are leaving the Bank.
There is a very little practice for increasing Motivation in the Employees by the
Management of Dhaka Bank Limited (DBL), which discourages them to provide the best Service to the Customers. This is another Weakness of the Bank. Opportunities of Dhaka Bank Limited
The greatest Opportunity for Dhaka Bank Limited (DBL) lies in the increase of
standard of living of a certain mass of the Population as well as their acceptance of the Nation of Consumer Financing and Short Term Lending.
The Credit Facility offered by Dhaka Bank Limited (DBL) attracted Security and
Status conscious Businessmen and as well as Service holders with Higher Income Group. Threats of Dhaka Bank Limited (DBL)
The emergence of several Private and Foreign Banks with in the post few years
offering similar Service with less or free charge for the facilities can be a major Threat of Dhaka Bank Limited (DBL).
The Central Bank exercise strict control over all Banking Activities in Local
Banks like Dhaka Bank Limited (DBL). Sometimes the restrictions impose barrier in the Normal Operations and Policies of the Bank.
Revival Banks easily copy the Product offering of Dhaka Bank Limited (DBL).
Therefore the Bank is in continuous of Product Innovation to gain Temporary Advantage over its Competitors. This is another Treat of the Bank.
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Sometime Political Loans are the Threat for the Banking Service.
RECOMMENDATION
Dhaka Bank is one of the third generation banks of Bangladesh and paying a vast role for developing the banking sector and also economy of Bangladesh. Dhaka Bank management is not bad but they should reach the standard level, especially Dhaka Bank should emphasize on HRM and they should develop HR department. Dhaka Bank HRM department have some lack for their operation so top management should recover that problem. Dhaka Bank performance appraisal process should follow some updated method to satisfy the present employee. The recruitment process should be combined such as internally and outside recruitment. Dhaka Bank job design should be updated; they should follow some specific method for the job analysis and the job description and job specification. The Dhaka Bank top management should arrange sufficient staffs for the HRM department.
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CONCLUSION
The one of the most important part of assignment is gaining the practical knowledge through dissertation worked and practices as well as theoretical knowledge. The main objective of this report is to fulfill the academic requirements of all courses and gather some practical knowledge. So I have entailed of the report HRM practice of Dhaka bank I have tried to focused Dhaka bank staffing process, performance appraisal process and job design policy. I also tried to introduce other function of the HRM department of Dhaka Bank. Dhaka Bank HRM follows modern policy for their operation. But they did not reach higher standard level for their HRM practice yet. The HRM department management is not efficient as well as multinational company HRM practice. For some of the operation they follow traditional policy, they do not follow proper HRM practice. Dhaka Bank HR department recruit people from inside of the bank by only employee reference and skill inventory. They should follow other extra other method. Only these two methods are not proper for the internal recruiting for any organization. Dhaka Bank HRM does follow any method for job analysis and job design. They follow tradition policy for the job analysis and job design. They follow tradition policy for the job analysis and job design. They follow tradition policy for the job analysis and job design. Dhaka Bank internal staffing management quality is also not good as multinational company. Dhaka Bank selection process is very simple; the selection process is not extra ordinary or standard quality. Dhaka Bank has not sufficient staffs for their HRM operation and individual staff faces more pressure for their daily operation.
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But HRM department of Dhaka Bank is trying to improve to reach standard level. The top management and HRM manager believes that their HRM department is updating and will reach multinational level.
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REFERENCE
Dhaka bank annual report 2008 Cynthia D.Fisher, James B.Shaw (Human Resources Management) Fifth
Edition.
John W.Newstrom and Mark Lengnick Hall one Size Dose Not Fit All
Reprinted from Training and Development. Copyright June 1991,
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