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Introduction
Human Resource management practice is in the increasing trend in Bangladesh. The potential for Human Resource Management is superior in Developed countries. In every organization human is the most important resource if we consider operating the organization properly. With the dynamic environment in business world the proper management of human resources became must. Organizations are crafting strategies to cope with new trends of HRM. The concept is relatively new in this region. In late 90s few foreign organizations operating in here introduced HRM practices. Prime and new organizations no longer think HRM as a subsidiary part of the organizations. Now the practices of HRM are being popular among all sort of organization. In this report I will discuss HRM practices in Bangladesh under the light of City Bank Limited, which will give us a clear scenario of HRM practices in Bangladesh.
City Bank Limited is a scheduled commercial bank in the private sector established under the Banking Company Act 1991 and incorporated in Bangladesh as a public limited company under the Companies Act 1994 to carry out banking business in Bangladesh. In Bangladesh the HRM practices is popular in banking sectors. In this trend City Bank Limited is one of the leading HRM practicing organizations in Bangladesh.
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City Bank Limited is one of the most successful banks among the third-generation private banks. The bank has successfully entered its tenth year of operations. With professional and dedicated team of management having long experience, commendable knowledge and experience in conventional and modern banking, the bank has achieved success among its peer group within a short span of time.
With all recourses, the management of the bank family believes that the bank would be able to encounter problems that may arise both at micro and macroeconomic levels. Within a short span of time City Bank has established itself as one of the first growing local private banks. It has at present a network of Fifty three branches serving many of the leading corporate houses and is gradually moving towards retail banking. Its other significant delivery channel is the shared ATM networks and City Bank has 52 ATM booths.
City Bank is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stellar Online Banking software enables direct linking of a clients account, without the requirement for a separate account. With the help of this Software each and every types of posting is being done.
City Bank has successfully established a transparent process of recruitment seeking the best talent. In its efforts towards continuous development of the human resources of the Bank, it arranges training programs throughout the year.
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The Vision Statement of City Bank Limited is to have a poverty free Bangladesh in
course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.
General Products Current Deposit Savings Deposit Short Term Deposit Fixed Deposit Consumer Banking Products City Bank DPS Plus City Bank Multi Millionaire City Bank Money Maximized City Bank Earning Plus Online Service Credit Card Features of City Bank Credit Card Product type & Annual fees ATM Services Foreign Currency Account
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21st Centurys HRM in Bangladesh: HR Manual of City Bank Limited SMS Banking SME Banking Mobile Banking & KIOSK (proposed)
Management Overview
The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. Here is the Organogram for City Bank Limited-
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Moreover, top executive of the Bank are frequently send abroad for enabling them to know the functions and mechanisms of financial, money and security market of the developed countries and also to exploring business opportunities. Quit a large numbers of executives and officers of the Bank have so far been trained at Bangladesh Institute of Bank Management (BIBM), Bangladesh Bank Training Academy (BBTA) etc. covering divers areas of the financial system including commercial banking as carefully selected are largely concentrated around core banking issues like credit management, international trade, treasury management, audit and inspection, loan review & monitoring and project management.
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After entering the CV in the software they printout the CV statement in quiz format, six CVs are in one page. With the statement the Banking Officers go to the Head of the HRD. The Head of the HRD, Senior Executive Vice President (SEVP), Executive Vice President (EVP) do an informal discussion and screen the CV. Then these top level managers give a schedule for interview. First Assistant Vice President (FAVP) of HRD set the venue for interview and calls the top level management to lead the interview. Banking Officers call the candidates to attend the interview. The consecutive process of recruitment and selection is shown below: Job Analysis Advertisement Written Examination (Management Trainee) Collecting CV Preliminary CV Screening by entering Software CV Screening by the Head of the HRD Preliminary Interview Selected Candidates Interview of Selected Candidates from Preliminary Interview Final Interview
If the preliminary interview is successful, the candidate will be invited to another interview. Then the selected candidates have to face the final interview. It is not set that, there will be three interviews. It could be four or more, depends on situation and post. All interviews are panel interview and the questionnaire of the interview could be direct or non-direct.
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Testing Process
The City Bank Limited takes written examination generally to select Management Trainees. The purpose of this test is to justify candidates cognitive, professional and basic knowledge. The candidate who passes in written examination get a call for interview. First Assistant Vice President (FAVP) of HRD set the venue for interview and calls the top level management to lead the interview. Banking Officers call the candidates to attend the interview. It is not set that, there will be three interviews. It could be four or more, depends on situation and post. All interviews are panel interview and the questionnaire of the interview could be direct or non-direct.
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Performance Appraisal
In City Bank Limited Performance Appraisal is done through ACR (Annual Confidential Report. ACR is the evaluation report on the work performance and personal skills. In a ACR report there will be the basic information like employees personnel information, period of evaluation start to end, remarks (if any), rater name etc. This evaluation based on five-liar scale (Below average 1, average 2, good 3, very 8|Page
1. Professional Knowledge 2. Improving Corporate Culture 3. Decision making ability 4. Ability of visualize and plan 5. Ability to act on emergent situation 6. Ability to implement decisions 7. Ability to guide and create team work 8. Communication Skills 9. Customer Relationship 10. Acquaintance with technological improvement
An employee has not any right access to his/her ACR, but s/he will be informed; so that s/he cans correct/improve/rectify himself/herself from his/her weaknesses if s/he has any. After finishing the Annual Confidential Report (ACR) in paper HR department enter those reports in the database.
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21st Centurys HRM in Bangladesh: HR Manual of City Bank Limited Remuneration Policy
The scale of pay and other allowances of officers and employees of the bank are prescribed by the Competent Authority from time to time. The initial pay of an employee appointed or promoted to the higher post are ordinarily fixed at the initial stage of the scale of pay of the post to which he promoted or appointed.
President and Managing Director to Banking Officer the salary breaks down are Basic pay, House Rent Ceiling, Conveyance Allowance, Medical Allowance and Entertainment Allowance. Here House Rent Ceiling is 54%, Conveyance Allowance is 26%, Medical Allowance is 10% and Entertainment Allowance is 10% of basic salary. Tellers and Trainee Officers are got Consolidated Salary only, because they are on provision period. Top level Officers from President and Managing Director to First Assistant Vice President (FAVP) got extra charges like House Maintenance, Utilities and Car Maintenance. Deputy Managing Director (DMD) and Senior Executive Vice President (SEVP) got Electricity, Gas, Telephone and Domestic Aids also.
President and Managing Director to Executive Vice President (EVP) got direct car from the bank. From Senior Vice President (SVP) to First Assistant Vice President (FAVP) got Car Loan facility. And President and Managing Director to First Assistant Vice President (FAVP) got House Loan also. These loan special for bank staff only, and the name of these loan are Staff Car Loan, Staff House Building Loan. The bank takes only 7% interest on these loan.
Group Insurance facilities will get the entire confirmed employee. This insurance basically health insurance and will get facilities on only hospitalization. In this insurance officers and executives will get the benefit of one spouse and two children. Kinds of Terminal Benefits The following kinds of terminal benefits are allowable to a regular and full-time employee of the bank. Gratuity Contributory Provident Fund Benevolent Fund 10 | P a g e
Performance Bonus If the bank makes profit, the employees will be entitled to 3% of pre-tax profit as performance bonus. Fifty percent of such bonus distributed on the basis of basic pay of an employee, and balance fifty percent on the basis of performance of individual employees. Performance appraisal for the purpose made on the criterion set by the management time to time.
Cash award The Competent Authority May grand cash reward to any of its employee for performance of a work which is occasional in character and innovative or research and development oriented warranting special merit as to justify the payment of the same.
Rewards for Passing Banking Diploma Examination The employee of the bank who will pass Banking Diploma Part-I Examination in the first Chance will get cash reward of TK.25, 000 and those who will pass Banking Diploma Part-II Examination in the first chance will get cash reward of TK.50, 000. Those who will pass Banking Diploma Part-I Examination in the first chance securing highest mark will receive an additional cash reward of TK.25, 000 and those who will pass Banking Diploma Part-II Examination in the first chance securing highest mark will receive an additional cash reward of TK.50, 000. The cash rewards for Banking Diploma Part-I and Part-II Examination in one more than one setting will be TK. 10,000 and TK. 20,000 respectively.
Annual Increment If employees service records and Annual Confidential Report (ACR) are satisfactory then the Competent Authority sanctions the increment on the salary. The percentage of salary increment is not fixed; it varies on Competent Authority decision. If the service records and Annual Confidential Report (ACR) are not satisfactory of an 11 | P a g e
If an employee recognized of his/her outstanding and meritorious performance then the Board may decide to give him/her another special increment in one year period of time.
Travel allowance and Daily Allowance When bank send any employee for training and call any employee for interview then the bank will give him/her travel allowance and daily allowance. In this case the employee has to claim his/her allowance with bus/ train/ plane tickets. Human Resource Department will verify the claim and pay the employee.
Leave Policy
Following kinds of leave allowable to employees of the bank
Earn Leave On completion of period of one year of continuous service in the Bank all employees get earned leave on full pay. The maximum amounts of such leave that may be accumulate four months.
Disability Leave Disability leave may be granted by the Board to an employee who is disabled by injury inflicted or caused in accident.
Maternity Leave Maternity leave may be granted by the competent authority to an employee for a maximum three months period at a time.
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Casual Leave Casual leave means a leave of absence for very short period of days, granted to an employee who may be unable to attend duty due to sudden illness or urgent private/family affairs. On completion of period of three years of continuous service in the Bank employee may earn study leave without any pay and allowances, for a period not exceeding two years may be granted by the Board to an employee to enable him/her to study considered useful for his/her services under the Bank.
Recommendation
As a rising trend HRM in bank sector has done pretty well. To boost up in the future we could follow examples of western banks and other institutions. In recruiting in an organization selecting by different criteria should be practiced. Human resources are most important and complex resource of an organization. So implementing any policy that affects employee should be reconsidered and scrutinized before implementation. Nowadays HRM became an important department which contributes a lot to make strategy in an organization. A good HRM department could be the biggest core competence for an organization if employees are handled in a proper way.
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Conclusion
Banks are among the most important financial institutions in the economy. They are the principal source of loan able funds for millions of individuals, firms and families and also for many units of government sector. In order to economic sector banking plays an important role in the rapid growth of any nation. Banks thus play an active role in the economic development of any country. Unlike other organization banks use most Human resources and a good employee can be an important asset for an organization. So, crafting HR strategy and implementation of them need solemn supervision. Though many organizations are following HR trends, still the HRM practice in Bangladesh did not prosper as it should be. It is a hope that organization will be more cautious and interested about proper HRM practices.
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