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Banking industry in Bangladesh

The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the
Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system is
composed of four state-owned commercial banks, five specialized development banks, thirty private
commercial Banks and nine foreign commercial banks. The Nobel-prize winning Grameen Bank is a
specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed
greatly towards poverty reduction and the empowerment of women in Bangladesh. Pursuant to
Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the Dhaka branch of the State
Bank of Pakistan as the central bank of the country, and named it Bangladesh with retrospective effect
from 16 December 1971. The banking system of Bangladesh is dominated by the 4 Nationalized
Commercial Banks in which 3 is totally controlled by government and 1 (Rupali Bank) bank is
controlled by both government and private sector. The nationalized commercial banks are:
Nationalized Commercial Bank of Bangladesh:
a)
b)
c)
d)

Sonali Bank
Agrani Bank
Rupali Bank
Janata Bank

Private Banks are the highest growth sector due to the dismal performances of government banks
(above). They tend to offer better service and products.
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
q)
r)
s)
t)
u)

United Commercial Bank Limited


Mutual Trust Bank Limited
BRAC Bank Limited
Eastern Bank Limited
Dutch Bangla Bank Limited
Dhaka Bank Limited
Islami Bank Bangladesh Ltd
Uttara Bank Limited
Pubali Bank Limited
IFIC Bank Limited
National Bank Limited
The City Bank Limited
NCC Bank Limited
Prime Bank Limited
Southeast Bank Limited
Al-Arafah Islami Bank Limited
Social Islami Bank Limited
Standard Bank Limited
One Bank Limited
Exim Bank Limited
Bangladesh Commerce Bank Limited

v) First Security Islami Bank Limited


w) The Premier Bank Limited
x) Bank Asia Limited
y) Trust Bank Limited
z) Shahjalal Islami Bank Limited
aa) Jamuna Bank Limited
bb) ICB Islami Bank
cc) AB Bank
dd) Marcantile Bank Limited
Beside these National and private Banks we also have some foreign banks operating in our country
namely:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

Citibank
HSBC
Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
Habib Bank Limited
National Bank of Pakistan
Woori Bank
Bank Alfalah
ICICI Bank

2. BRAC Bank at a Glance

2.1 Introduction:
BRAC Bank Limited is a full service scheduled commercial bank. It has both local and International
Institutional shareholder. The bank is primarily driven with a view of creating opportunities and
pursuing market niches not traditionally meet by conventional banks. BRAC Bank has been motivated
to provide best-in-the-class services to its diverse assortment of customers spread across the country
under an on-line banking dais.
Today, BRAC Bank is one of the fastest growing banks in the country. In order to support the planned
growth of its distribution, network and its various business segments, BRAC Bank is currently looking
for impressive goal oriented, enthusiastic, individuals for various business operations.
The bank wants to build a profitable and socially responsible financial institution. It carefully listen to
the market and business potentials, It is also assisting BRAC and stakeholders to build a progressive,
healthy, democratic and poverty free Bangladesh. It helps make communities and economy of the
country stronger and to help people achieve their financial goals. The bank maintains a high level of
standards in everything for our customers, our shareholders, our acquaintances and our communities
upon, which the future affluence of our company rests.

2.2 About BRAC Bank Limited:


BRAC Bank Limited, one of the latest generation of commercial banks started its journey on July 04,
2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of the worlds largest
non-governmental development organizations founded by Fazle Hasan Abed in 1972. The Bank operates
under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives
towards a poverty-free, enlightened Bangladesh.
BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation
(IFC) and Shore Cap International, has been the fastest growing Bank in Bangladesh for the last three
consecutive years. In the recent past the bank has gone public with price of shares reaching impressive
heights, further showing promising future.
A fully operational Commercial Bank, BRAC Bank Ltd. focuses on pursuing unexplored market niches
in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the
country. In the last ten years of operation, the Bank has disbursed over BDT 14,500 crores of SME loans
and has over 1,200,000 individual customers who access online banking facilities. The management of
the Bank believes that this sector of the economy can contribute the most to the rapid generation of
employment in Bangladesh. Since inception in July 2001, the Bank's footprint has grown to 81 branches,
over 405 SME unit offices and 250 ATM sites across the country. In the years ahead BRAC Bank
expects to introduce many more new services and products as well as add a wider network of SME unit
offices, Retail Branches and ATMs across the country.

International Finance Corporation:


BBL has important international shareholdings apart from BRAC: IFC and ShoreCap. International
Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas
representatives, IFC helps local financial institutions find profitable ways to target small and medium
sized companies. Funding comes from the Asian Development Bank, Canada, the European
Commission, the Netherlands, Norway, the United Kingdom and IFC itself.
Shore Cap International Ltd
Another international institutional investor Shore Cap International Ltd. is an international private nonprofit, equity company seeking to invest in small business banks and regulated micro finance institutions
in countries with developing and transitional economies. Shore Cap typically invests between $500,000
and $2 million for an ownership position of 10-25% of a company. As a minority shareholder, Shore Cap
seeks financial institutions with a strong, experienced management team and a committed set of local
development-minded investors.
The shareholding structure of BRAC Bank Limited:
Shareholders of BBL
BRAC
IFC
Shore Cap International

General Public through IPO


Others
Total

43.77%
5.36%
0.86%
50%
0.01%

100%

Table: 1.1 Shareholding structure of Brac bank

Fig1.1: Shareholders percentage

2.3 Corporate Mission:


BRAC Bank Limited wants to be the absolute market leader in the number of loans given to small and
medium sized enterprises, service holders, teachers, students, immigrants and people belong to all
income and professional groups through out Bangladesh. It tries to be a world-class organization in
terms of service quality and establishing relationships that help its customers to develop and grow
successfully. It wants to become the Bank of choice both for its employees and its customers, the model
bank in this part of the world.
The missions that BBL follows are Sustained growth in Small & Medium Enterprise sector
Continuous low-cost deposit Growth with controlled growth in retail assets
Corporate Assets to be funded through self-liability mobilization. Growth in Assets through
syndications and investment in faster growing sectors
Continuous endeavor to increase non-funded income
Keep our debt charges at 2% to maintain a steady profitable growth
Achieve efficient synergies between the banks branches, SME unit offices and BRAC field
offices for delivery of remittance and Banks other products and services
Manage various lines of business in a full controlled environment with no compromise on
service quality
Keep a divers, far flung team fully controlled environment with no compromise on service
quality
Keep a diverse, far flung team fully motivated and driven towards materializing the banks vision
into reality

2.4 Corporate Vision:


The vision of BBL is to build a profitable and socially responsible financial institution focused on
Markets and Business with growth potential, thereby assisting BRAC and stakeholders build a just,
enlightened, healthy, democratic and poverty free Bangladesh.

2.5 Management Aspects


Like any other business organization, the Top management makes all the major decisions at BRAC Bank
Limited. The Board of directors being at the highest level of organizational structure plays an important
role on the policy formulation. The Board of directors is not directly concerned with the day-to-day
operation of bank. They have delegated their authority to its management committee, which is called
MANCOM. Now there are 5 directors in the Top management of the bank. All the directors have good
academic background and have huge experience in business. Mr. Fazle Hasan Abed is the Chairman of
the bank. The board of directors holds meetings on a regular basis.
The Management Hierarchy of BRAC Bank Limited is given below:
Chairman
Board of Directors
Managing Director
Deputy Managing Director
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
First Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Officer
Officer Grade II
Officer Grade I
Executive

Employee:

The BRAC Bank Limited has in different employees criteria. There are different types of employees
working in different places inside BRAC Bank. The types of employees are Regular employee:
The permanent stuffs are known as regular employees. The regular employees are allowed to get
the bonus, incentives and other allowances with their basic salaries. And these types of
employees also have the benefit of gating extra facilities the BRAC Bank limited is providing for
their employees.
HR Staff:
HR temporary contract are for those categories whose Job description is such, where he/she
needs to be under the direct supervision of Banks authority, whose performance is monitored by
the Bank Management. They might be specialist, consultant, and specially assigned staff. Staff
under HR contract are those people who directly or indirectly deals with customer, has access to
Banks confidential datas & valuable properties (car, etc), deals with sensitive areas, also where
staff need to deal with customer as a representative of BRAC Bank directly. The HR Stuffs
salaries are fixed and they wont get any allowances with their salary.
Outsourced Staff:
Other contractual employees are not entitled for any service agreement. They will be recruited
through outsource agencys. The requirement of any support staff through outsource agency must
come through HR signed by the Division Head. HR will send the requirement to provide staff by
the Outsource Agency. Outsource Staff recruitment depends on the budgeted requisition of the
staff from the respective departments. However, for non-budgeted requisition it will go through
after the approval process of MANCOM. The bank reserves the right to terminate the contract
with the Outsource Agency without assigning the reason whatsoever. The Outsource Stuffs
salaries are fixed and they wont get any allowances with their salary.
Intern:
To encourage and help human resource development in the financial industry the Bank may
decide to offer internship programs to individuals or educational institutions. The decision to
enter such an engagement will be decided by the MD& CEO on the recommendation of the
Department Head. The HRD will prepare the proposal of such engagement with
individual/institution and forward it to the MD& CEO for consideration with the
recommendation of the Head of HR. Individuals engaged as Internees will be paid a consolidated
Honorarium per month, as decided by the MD/MANCOM and will not be entitled to any other
benefits. Managing Director and CEO will determine and analyze the necessity of intern on the
basis of yearly budget and also requirement of special projects. As per requirements Department
Head will make the intern requisition and after receiving intern requisition HR will take 15 days
for an intern to join. All Internships program will be for a three months. Prior approval by MD&
CEO internship program can be extended for a maximum period of six months.
Management Trainee Officer (MTO):

Management Trainee Officers highly qualified students of BRAC Bank Limited. The MTOs are
regular employee but they have to learn as a student inside BRAB Bank for the period of one
year. After one year if they can complete their learning period successfully they will become a
senior officer directly from the MTO.

3. The Human Resources Department of BRAC Bank LTD.


Having a Human Resources Department in Bangladesh business organizations today is becoming a
common and important part. But Human Resource Management is a relatively new discipline to study
and implement in this part of Asia and in most organizations HR Department work as a Support
department to the organization. Where as it was suppose to be an integral part of the business without
which an organization cannot maximize the utility of its most valuable resource, which is the
workforce, the employees of the organization.

3.1 Functions of Human Resource Division:


BRAC Bank Limited has a fully functional Human Resources Division (HRD) supported by manpower.
The HRD of BRAC Bank Limited performs the following functions:
Selection and Recruitment.
Training and Development of Employees.
Compensation and Benefits Planning.
Promotion Planning.
Local and Foreign Travel Planning.
Bond Policy Formulation for Travel/Training/New Joiners.
Policy Formulation for Leaves.
Making Reward and Recognition Policies.
Policy Formulation for Staff Loans (Car/Housing).
Policies for Resignation or Termination from Services.
Retirement Policy.
Employee Gratuity Fund Policy Formulation.
Employee Provident Fund Policy Formulation.
Employee Welfare Fund Policy Formulation.

3.2 Human Resource Divisions Wings:


There are five wings in human resources department in BRAC Bank LTD. They are as follows:
Administration
Recruitment
Learning and development
Payroll and benefits

4. The Report:
4.1 Introduction
As part of the report for Human Resource Management course for MBA I have chosen BRAC Bank
limited where I get the opportunity to know about the human resource management of BRAC Bank
limited and its functions.

4.2 Objectives
The objectives of the report are simple. It has three simple objectives namely:
HRM problems and issues facing by BRAC Bank limited
What HRM approaches do they need to ensure ongoing strategic competitive advantage?
What HRM challenges they are facing in the 21st century?

4.3 Methodology
In order to attain the objectives, collection of primary data is necessary. This data will be used to analyze
the problem statement. The largest part of the analysis however would obviously be conducted by
carrying out the employee satisfaction survey. The intention is to obtain a randomly selected unbiased
sample of 100 employees across the bank and to question them on various HR Grounds to asses the
employee satisfaction level. Therefore the methodology would include relevant information is collected
from interviews, Surveys, observation and annual reports of the bank and other bank in comparison.
Primary data are collected through:
The Employee Satisfaction Survey
Open ended and close ended questions,
Conducted discussions with Officers of HRD
Secondary data are collected through:
Annual Report of BRAC Bank Limited
Website browsing.

4.4 Scope
This report will give a clear idea about Human Resources Department in the BRAC Bank limited. and
how efficiently they utilize their resources? What types to benefits they offer to their employees to
motivate their work? The study helps us to gain hands on knowledge about the Human Resources
Department. The study has enormous implication to develop HR guide line and increase Employee
Satisfaction. The management of BRAC Bank limited can use the findings and recommendation for their
policy making and organizational development purpose. It will help them to introduce a new dimension
of hiring and retaining more efficient people for their organization.

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4.5 Limitation
The research contains a number of limitations as well.
The first and foremost limitation was that it was carried out on the most confidential and sensitive
department of any organization that is the human resources division. A number of items had to be
excluded from the analysis as they were considered confidential. The research was therefore forced to be
very primitive.
Moreover, while conducting the Survey, selection bias might have existed in sample population may be
there. The sample distribution may not be even, there may be a majority of people coming from a fixed
range of income level.
Time constraint is one of the problems, for which it has been very difficult for me to go in depth with my
research.

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Problems & issues facing by BRAC Bank Limited


During doing this report I had did the SWOT analysis for getting the internal and external problems of
BRAC Bank limited. According to the SWOT analysis I found the following analysis
The overall situation of Human Resource for a company like BRAC Bank limited is not that
much controlled to be used and utilized it perfectly.
The salary structure is not high enough according to the workload of the employee.
There is less manpower to control and maintain the large amount of employees.
Online recruitment system is not upgraded time to time.
BRAC Bank limited has a huge number of employees. So is difficult to maintain the Human
Resource policies with this large number of employees.
The resignation rate too high in BRAC Bank Limited then it anticipated.
Reference control on policy is common situation of Bangladeshi organization. BRAC Bank is
not out of it. Reference control on Human Resource policy can be a bad threat for BRAC
Bank Limited.
Training is not provided at the level of employees need.
In order to assess this problem I did a survey which was carried out by using a randomly selected sample
of 100 employees and questioning them to get the answers. The employees were from the Support,
Operations and Business sectors of the bank.

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Question Samples
1. My salary is fair according to my
job
2. BRAC Bank recognizes its
employees with proper recognition
and rewards
3. Employee performance and
evaluation process is fair and
appropriate
4. Annual performance Bonus is fair
compared to the banking industry
5. Proper orientation training
provided to the fresh recruits.
6. Received specific training to do
their particular job
7. Training provided direction and
value to their career path
8. Performance evaluation process is
fair
9. My work load is acceptable
10. Are you satisfied as an employees
of BRAC Bank
11. Whether employee satisfaction is
an important issue to the
management

Strong
ly
Disagr
ee

Disagr
ee

Not
sure

Agre
e

Strong
ly
Agree

26

51

13

11

64

22

24

31

18

19

21

43

25

30

35

17

10

48

37

39

53

14

69

13

62

23

69

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According to the survey result illustrated in the table above, we can see that about 51 % of the surveyed
employees disagree that their salary is fair with respect to their job. And about 26% of the employees
questioned strongly disagree to the same. To sum up this portion, 77% of the sample believes that their
salary is not sufficient enough or does not reflect upon their job description and job responsibilities and
hence is unfair. The following question backs up the same thought when it is seen that 64% of the
sample does not believe that they do not receive proper reward and recognition for their efforts. 11% of
the sample strongly believes that they do not receive proper rewards and recognition for their efforts.
However 22% of the sample believes that the bank does believe in fair reward and recognition for its
employees. On top of that, 75% of the sample believes that there are not being recognized by the bank
and they are being rewarded for their contribution. This information indicates towards a significant
stimulant for dissatisfaction amongst employees. The basic reason an employees across the globe work
for is remuneration and if the employees at BRAC Bank feel that they are at the thinner end of the
bargain then chances of employees switching jobs become high. Given the fact that the extensively
invests in training its employees, if the bank is not able to retain its trained and experienced employees
then it is a major loss of critical resource for the bank. The bank will gradually move towards a negative
turnover that will prove fatal to the banks smooth functioning. If the employees in the bank feel that

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their contribution is not being recognized and rewarded then there will be a definite fall in motivation
towards work resulting from a rising sting of job dissatisfaction. This will adversely affect the banks
productivity efficiency and coordination. Therefore we can understand that the survey correctly indicates
towards a very significant issue that in all probability is a rising cause of employee dissatisfaction.
The survey talks about is Training. BRAC Bank trains its employees very extensively and has a whole
training division dedicated to serve the purpose of training these individual employees. Not only does
the bank invest in in-house training but also in international as well as local external training. Now, it is
therefore very important to assess the satisfaction the employees have considering the considerable
investment that bank makes on training its employees. These training are meant not only to teach
employees how to do their work well but also to add value to an employees knowledge and talent to
increase their potential so that they can keep up with the growth of the bank and make valuable
contribution to its productivity. The survey shows that 30% of the employees strongly disagree that
orientation training provided to the fresh recruits of the bank did not significantly helped them begin
their journey at BRAC Bank. A significant 35% of the sample disagrees to the above claim. BRAC Bank
also provides employees with training pertaining to job roles and also depending upon their individual
nominations. These training are meant to aid these individuals to develop their professional skills and
add value and direction to their career paths. 53% of the surveyed employees agree that indeed the
extensive training provided by BRAC Banks training team has indeed provided direction and value to
their career path. Only 39% of the questioned employees disagree to the fact that these training might
have added value to their career. 48% of employees disagree that they have received specific training to
do their particular job well while 37% of the sample agree that they have received sample training to do
their jobs effectively and efficiently.
55 % of the sample strongly disagree or disagree that employee performance evaluation process is fair
and appropriate. That is, this point further strengthens the point that the employees are significantly de
motivated and dissatisfied if they believe that their performances are not evaluated fairly. If an
employees that he/she is not being paid fairly and his/her efforts and contributions are not recognized
and evaluated fairly then it clearly indicates a serious case of dissatisfaction amongst employees that
may prove unhealthy for a fast growing bank like BRAC Bank in the near future.
The last questioned in this section is actually tied to the first question and it again investigated whether
the employees believe that they have a fair share of work load or not. But unfortunately it is seen that
83% of the sample does not believe that they have a fair share of work load instead it is believed that
they have an unacceptable work load. If the majority of the employees believe that they have
tremendous pressure that stretches out of their job description and design and yet not getting the
remuneration that they believe is justifies and fair then it is natural that these employees suffer from job
dissatisfaction and the stimulant behind this dissatisfaction is poor salary and extreme work pressure.

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In summary, it can be said that a serious case of dissatisfaction can be identified amongst the Brac bank
employees and a significant cause behind this dissatisfaction seems to be unfair or less pay or little or no
recognition of effort and contribution.
The next section, directly asked the sample to asses and answer how satisfied they are as employees of
BRAC Bank.

Fig: 4.1 Employee Satisfaction Level

In answer, as the figure above illustrates, a majority of 62 % of the sample strongly disagrees or
disagrees that they are satisfied as the employees of the bank. It is also asked that whether employee
satisfaction is an important issue to the management, it is seen that 69% of the sample does not believe
that management of the management of the bank will provide due consideration to employee satisfaction
as an issue. This section proves that there is dissatisfaction amongst the employees and is amongst quite
a majority. This majority perhaps also believes that the management is indifferent to the problem and
dissatisfaction of this large group.
The employees were then asked that if they were to leave the organization what would be the main
reason behind it and amongst the answers, 46 % of these people would leave for higher salary while
28% would leave to work in a larger more reputed organization and 17 % would move out to work under
lesser pressure. Here we must observe that the majority would move out in search for a job with better
pay that might indicate that BRAC Banks employees feel that theres perhaps the potential to receive
higher salary than what is achievable at this bank working under so much pressure.

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Fig: 4.2 Key Reason behind leaving BRAC Bank.

When asked if they were looking out for job opportunities, a majority of 64 % said that they were indeed
looking for job opportunities.
Therefore these employees must be looking out for jobs that pay higher or for jobs in larger
organizations or for jobs in larger organizations or for job with less pressure. Therefore, it can be
understood that employees are dissatisfied with the increasing pressure the salary paid and BRAC Bank
and hence they are searching for job opportunities in other organizations.
Finally when asked what BRAC Bank can do to increase employee satisfaction, a majority of 42 %
claimed that by increasing the salary it can boost up the employee satisfaction level at BRAC Bank. 21
% said that it can reduce the stress that employees undergo while another 23 % claimed that reducing
targets can significantly increase employee satisfaction level at BRAC Bank.

6. HRM approaches to ensure ongoing strategic competitive advantage


6.1 Recruitment:
Selection and Recruitment is an integral part of any organization that heavily depends on their workforce
to successfully perform their mission and achieve their vision in the long run. Thus appropriate selection
of candidates to join in the workforce is a necessary part of Human Resource Management, which is
ensured by the Human Resource Division in BRAC Bank Limited.

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Recruitment Process:
For the recruitment the BRAC Bank Limited should use the following process
a) Direct Recruitment: The BRAC Bank Limited should use a CV Bank in HRD. In direct
recruitment the HRD will short list the CVs from the CV Bank or collect the CVs that referred
by the employees of BRAC Bank Limited for direct interview for the specific selected post. After
short listing the applicants will directly informed of called for the interview and after the
interview the applicant will be finally selected.
b) Through Advertisement: Sometimes the HRD of BRAC Bank Limited will not able to short list
CVs for specific post from their CV Bank. In this situation the HRD advertise of recruitment in
specific post mentioning the job description with the minimum requirement that the applicant
should have for the post and collect CVs which are being specified according to the requirement
that has been published in the advertisement. After that the CVs will be short listed and the
recruitment procedure will go according to the direct recruitment process.
c) Internal Job Posting: For any kind of internal job search it will operate through a circular in lotus
mail or notice board for existing staff other than permanent also HR Temporary (minimum one
year with BRAC Bank Limited) & outsource staff (minimum three years with BRAC Bank
Limited). Job specification will be clarified in that circular and interested candidates will have
full liberty to apply subsequent to the clearance from his or her respective line manager. After a
formal interview in front of the Recruitment committee or Management Committee/MANCOM
he or she can be absorbed in the suitable position.
6.2 Training and development:
Providing employees with training and development opportunities not only contributes to the quality and
effectiveness of the organization it also serves to motivate and retain employees. According to BRAC
Bank training is not an expense but an investment.
The banks policy is to train the Human Resources to enhance skill and knowledge for better
understanding of job responsibilities. It includes on-the-job and formal training programs.
Training programs include:
Orientation Training
In-house training
Job specific training (newly implemented)
Need base local/foreign training
Peer or Supervisors coaching
E-learning: Online training and evaluation (newly implemented)
Every department has to follow an employee performance measurement method devised by the HRD.
This performance measurement form will be filled out and signed by the supervisors and respective

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Department Heads. Based on these performance reviews, training needs will be identified for different
employees.

Identification
of the need by
the employee
in
performance
measurement

Discuss with
the Dept.
Head

Recommend by
Dept. Head of
HR

Arrange
Training

Completion
of Training

Feedback
to HR
Counseling,
Mentoring,
Material
Reading

Record
Keeping in
Personal
File
Fig 2.1: Training process flow

The training and development department conducts this training session; HR department works as a co
-coordinator for the whole process.
The training procedure followed by BRAC Bank HRD can be summarized in the following steps:
1
2
3
4
5
6
7
8

Orientation Training after the new hires have completed all the formalities.
Special Training for Retail Staff and Corporate who deal with Cash.
Arrangement of Post field attachment training for CROs who have been nominated by the concerned
authority.
In-house resource person is informed prior to training.
HRD is informed/concerned person is informed by HRD prior to foreign training
Concerned person/department is informed prior to outside local training.
HRD is confirmed by the concerned department/person after receiving offer from HRD.
If the participants arrange any course (local training institute), it should be informed to HR along
with proper approval from MD/COO for necessary action before training.

Training Arranged by Bangladesh Bank or any legalized body where any staff of the bank has been
nominated by the supervisor and the same has been informed to HR.
By providing such short of training to the employees of BRAC Bank, they can able to create knowledge
based employees who can give more productivity and add values to the company.
6.3 MIS & Strategic Planning:

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BRAC Bank had newly establish MIS & Strategic Planning wing in HRD whose functions includes to
be work process improvement, project management, increasing use of technology more and paperwork
less by developing and generating ideas to incorporate technology in different business and day-to-day
functions. BRAC Banks different departments and divisions use different MIS, there is no centralized
system formed yet. Thus MIS & Strategic Planning does not go by any specific work procedure. The
Manager, MIS & Strategic Planning is in charge of the Projects/Assignments and currently the MIS &
Strategic Planning section has started to maintaining the E-Learning system which is an Employee
Development program based on Online Training & Evaluation. Employees can sit for online exams
within the workplace and it is the duty of the MIS & Strategic Planning Manager to evaluate the
electronic scripts and distribute the results after evaluation. The current projects of MIS & Strategic
Planning are development of two computerized systems named E-Attendance and E-PM, one for
employee attendance management and the other is for employees performance measurement matter
respectively. By developing such kind of thing the employees performance measurement will be
improve and accordance to that the employees will be benefited, rewarded and recognized.
6.4 Compensation & Benefits
Salaries:
The Bank is making new policies which will be committed to follow a fair, competitive and flexible
remuneration policy. The remuneration policy of the bank will cover all persons engaged in permanent
service of the bank.
The Salary structure of the Bank will be based on Job Grades. Job grades will be decided on the basis of
an analytic assessment of the position based on the size, responsibilities, decision-making authorities
and the nature of the job.
The remuneration of employees consists of:
- Basic Salary
- House Rent and
- Medical Allowance
Salaries are confidential between the employees concerned and the Management. The salary ranges for
these job grades will be reviewed from time to time.
HR Temporary & outsource staff do not have any assigned job grade. The contract will have a
consolidated payment per month and there is no other entitlements applicable except commission based
on job criteria.
Basic Pay:
Basic Salary Ranges (BSRs) is appropriate with the job grades and is determined by the Board on the
recommendation of the Managing Director. The Board started to reviews the BSR at least once every

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two/three years. Basic Pay means the pay on the scale or fixed rate of pay that has been sanctioned by
the competent Authority for the post held by an employee but does not include any other remuneration.
Gross Pay means the summation of the all types of payment received by an employee.
House rent allowance: House Rent Allowance may be paid to the employees at such rates and on such
conditions as may be prescribed by the Competent Authority from time to time.
Medical allowance: Medical Allowances may be paid in accordance with the job grades and on such
conditions that may be prescribed by the Competent Authority from time to time.
Festival Bonus:
Festival Bonus will be paid to all confirmed officers/staff @ one month basic salary which will be
reimbursed twice in each calendar year. All confirmed employees would get one bonus during Eid-ulFitr and another one for Muslims during Eid-ul-Azha and for others based on their respective religious
festival.
Non-confirmed employees will be entitled to get Festival bonus as pro rata basis depending on his/her
BBL joining Date.
HR Contract & Outsource Staff would get 1 bonus, which is 50% of their consolidated salary.
Re-fixation of salary adjustment based on inflation: (Once a year: effective 1st July each year): the
Board of the Directors will decide the annual salary revision and recommendation will be based on:
- Revised Pay Scale, and/ or
- Inflation
Performance Bonus (PB): (once a year): The Board of Directors at its discretion, based on the Banks
profit will declare a certain percentage of the pre-tax profit as Performance Bonus.
The contribution measurement will be coming from the Performance Matters. Performance Matters for
such purpose shall be made on the criteria set by the management from time to time.
Leave Fare assistance (LFA): (once a year):
Leave Fare Assistance is a non-recurring benefit for all the permanent employees of the Bank who have
completed at least one year service. According to Bangladesh Bank policy all the permanent employees
have to take 15 days mandatory leave in one go and LFA will given in this leave period, so that everyone
will be encouraged to avail the leave. BRAC Bank provides Leave Fare Assistance to its Employees to
ensure that the employees enjoy a sound mandatory leave of 15 days in one go. This will definitely
enhance the employees satisfaction and it will enhance competitiveness with peer organization in the
industry.
Every Permanent employee of the bank is eligible to receive the LFA who have completed at least one
year service. This benefit is available at the time of mandatory Leave. However, after completion of one

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year service and being confirmed, calendar year must have the option to accommodate staff mandatory
leave.
LFA will be given at the time when an employee will avail the 15 days mandatory leave. LFA will be the
one months basic salary of processing month for current and future treatment. For previous treatment,
the amount will be one months basic salary of Mandatory Leave Availing month.
Every Confirmed Employee is entitled to receive LFA only once in a year.
After receiving Mandatory Leave application HRD will produce the Pay Slip. Head of HR will approve
this slip and send to FAD for payment and FAD will pay accordingly.
Hospitalization Insurance
In the event where hospitalization or surgery is required for a member of the officers (confirmed
employee) dependent (Spouse and Children) including hospitalization on account of maternity - the
Bank will reimburse the officer (Group C) up to a maximum of Tk.35,000/- per annum, for executives
(Group B) Tk. 100,000/- per annum and 200,000/- per annum for MANCOM (Group A).
Travel allowance
An employee of the Bank may be allowed to draw traveling allowance in respect of journeys performed
for the purposes authorized by the competent authority which include:
- On officially assigned tour
- To give evidence in a court of law
- On transfer
- On compulsory recall from leave
- To appear at a departmental/professional examination as authorized by the competent authority
- To attend a course of training sponsored by the Bank
- To bear the cost of travel of deceased employee
Types of allowances under travel policy:
- Traveling Allowance (Mode of Transport)
- Accommodation Allowance (Hotel Rent)
- Daily Allowance
Security Fund:
The objective of the fund is to provide predetermined monetary benefit against Death and Permanent
Disability of regular confirmed staff to his/her Dependent/Heir/Nominee by the Bank. All Regular
Confirmed employees are eligible to avail this benefit. The fund for this benefit is created solely with the
Banks Contribution.
The Bank will contribute Taka 5.00/Thousand on a yearly basis against the last basic salary of each
eligible employee. (The rate of contribution may be changed subject to the approval of the board.) The
Bank maintains a liability account to manage the fund.
The total amount of benefit will be equal to 36 times of the last basic salary of the employee.

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Welfare Fund:
The motive behind establishing the welfare fund is to be able to provide the regular confirmed
employees from JO to SPO with financial support for incidents or events when the cost may not be
affordable for the employees. These may include the following:
- Accidents on the job
- Extended illness
- Education for children
- Marriage of children
Employees of the grade JO to SPO may be the members of this fund. The amount to be received by the
employees under such special circumstances would be settled on by the fund management committee
after thorough assessment of the claim application and relevant documents.
A beneficiary will not be entitled to receive fund more than once in one calendar year.

Maximum limit for relevant occurrences are stated below:


- Severe Accident & Extended Illness
-

Education/Examination:
o SSC & HSC
o Degree (BA/ BSS/ BSC/ BCOM/ BBA)
o Master Degree/ MBA
o Marriage Ceremony

TK 50,000

TK 10,000
TK 20,000
TK 50,000
TK 1, 00,000

By provide such kind of benefits and compensation packages the employees will not think to shift
themselves to another bank and hence the bank could able to retain their experienced and trained
employees within their company.

7. HRM challenges BRAC Bank is facing in the 21st century


7.1 Increase in Inflation rate: Due to increase in inflation rate which is now 12.84% (as on June 2011)
the rate of the loan products also increases which causes a decrease in the loan disbursement of the bank
in 2011. According to the banks internal information about 9% fall in loan disbursement. Beside the
there is fall of deposit amount too.
7.2 Mobile Banking System: Mobile Banking refers to provision and a ailment of banking- and
financial services with the help of mobile telecommunication devices. The scope of offered services may
include facilities to conduct bank and stock market transactions, to administer accounts and to access
customized information." Bangladesh already has country-wide mobile phone coverage, and 56% of the

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people have mobile phones. Thus there are 43% people with mobile phones, but no bank
accounts. Banks now have a great opportunity to deliver banking services a portion of the unbanked
43% people using new products based on mobile phone technologies (http://www.progoti.com). Already
Dutch-Bangla Bank limited had started this new product and had gaining huge number of customers. To
compete with this challenge BRAC Bank combines with Money in Motion LLC, USA to start mobile
banking in the name of bkash which was launched in July 21, 2011.
7.3 Financial Crisis: Due to financial problem face by the bank in the year 2011 (reason of financial
crisis is confidential) the bank had to layoff about 10% of their employees which includes all type of
employees specially the HR contractual. This can be proved as during the year of 2011 there was no
recruitment took place. Beside that they also started cost reduction project within the organization to
come over this crisis.

8. Recommendations & Conclusion


8.1 Recommendation:
Therefore after this study, it must be said that Brac bank must immediately look into to improve the
satisfaction level of satisfaction by motivating their people or by making their effort worthwhile.
Basically should look into restructuring its Salary structure. It can either layoff and restructure or it can
extend its budget and enhance pay to be able to retain employees more efficiently.

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More importantly, it is very important to eliminate the discrepancy among employees in terms of salary
within the bank to remove all possible chances of unfairness. An element of equity must be established
within the bank across job grades and designation.
The bank must restructure its pay from the bottom of the organization by bringing up the salary level
from bottom to top.
The bank should also utilize its training department in increasing employee dedication and motivation to
work towards a combined goal and enhanced solidarity.
Certain other issues that came out of the survey must also be dealt with such the bank must pursue a
certain degree of decentralization within a centralized framework. That is the bank can delegate power
of promotion and salary increment to specific departments to which the employee belongs to. This
reduces layers and the chances of an employee being correctly evaluated and awarded should
significantly increase.
The banks management must be more transparent about its functions and decision making and ensure
that there is significantly reducing layers between employees and management or the administration.
In this part of recommendations, some valuable issues of BBL are discussed. These were the aspects that
came out while working for this report at BBL. These were related to various parts of BBL and thus are
placed in the list of general recommendation.

Make the salary structure attractive to the employee.


Make succession planning.
Reduce the extra workload of the employee.
They should increase the manpower of HR department.
The Human Resource Divisions control must be structured.
Arrange co-curricular activities for employees refreshment.
Arrange proper training for the employee.
They should provide that much of information in orientation training that will ensure them to do
their work their job smoothly.
The training should be motivational.
For better training they can go for professional trainers.
Supply more training materials during training.
After training, it is very much important to take evaluation about training program. They should
evaluate the trainees properly.
Online recruitment system is not upgraded. They should upgrade it.
Better MIS support is needed for smoother operation.

8.2 Conclusion:

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BRAC Bank intends to set standards as the market leader in Bangladesh. It demonstrates that a locally
owned institution can provide efficient, friendly and modern banking service on a profitable basis.
Human Resource Department is the most confidential department for any organization as well as Human
Resource Division in BRAC Bank Limited. I am not allowed to get the information which is too much
confidential for the Bank. So in my report all the information that I give that I am allowed to take the
information and I have learnt from my Work.
The BRAC Bank Limited is a bank that confirms the best service to the customers as well as to the
employees by Human Resource Division. BRAC bank Limited is the fastest growing Bank in
Bangladesh.

10. References:

Annual report Brac bank 2009-2010 for financial statements

www.bracbank.com/php/include_gen for background information

http://bkash.com/Press.php

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http://www.progoti.com/index.php?option=com_content&view=article&id=21&Itemid=16

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