Course ID: HRM301Course Title: Introduction to Human Resource ManagementSection: Group: Spring 2015Report on: Human Resource Management Practices in BangladeshChosen Company: Prime Bank LTD.Submitted By:Name: Numan Ibne Fahim #ID:1220672 Name: #ID:

Submitted To: Dr. A. N. M. Shibly Noman Khan (Associate Professor)

Letter of Transmittal11th April, 2015Dr. A. N. M. Shibly Noman Khan,School of Business,Independent University, Bangladesh.

Subject: Submission of the Report on Human Resource Management Practices in Bangladesh

Dear Sir,With due respect and humble submission, on behalf of Group , I would like to inform employee that my group members and I are the students of , submitting our report on Human Resource Management Practices in Bangladesh .In the writing of the report we have tried to follow all the guidelines provided by employee and tried to make our analysis in an effective way. We have worked very hard and finally made this report. We also want to claim that throughout our work, we did not do anything unethical. We would like to request employee to consider our limitations and grant our report to make our hard work successful. We have made some recommendations for future researcher so that the findings of our report can be more justified. We appreciate all sort of criticism and we most welcome any queries. Sincerely,Numan Ibne FahimID: 1220672(Behalf of Group)

AcknowledgementApart from the efforts made by us, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the people who have been instrumental in the successful completion of this project.Our first acknowledge goes to the almighty Allah for bestowing us the patience and courage to finish this huge task within its deadline.Then we would like to show our greatest appreciation to our honorable faculty Dr. A. N. M. Shibly Noman Khan. We cant thank him enough for his tremendous support and help. We feel motivated and encouraged every time we attend his classes. Without his encouragement and guidance this project would not have materialized.Acknowledgments must go to the team members, whose unflagging patience and astounding capacity for creative work, and long hours made the project both possible and successful under the pressure of knocking deadline.The guidance and support received from all the persons who contributed and to this project was vital for the success of the project. We are grateful for their constant support and help.

Executive Summery

In our report, we have tried to show the Human resource management system of Prime Bank. For that we first give a formal introduction, objective of our study, methodology, Data sources, Limitation of our report as instruction. After That we find out the company overview, Historical background,vision and mission and factory location which means branches of our chosen company.Then we entered into main thing which was most essential part of our report. In this part we show the human resources management process of Prime Bank, recruitment process, compensation system, training and development, employee testing and selection process of Prime Bank. To understand these steps we did an empirical study with some managerial persons of Prime Bank Bangladesh. We used various articles to explain these topics. These relations among these between these topics helped us to understand the issues. All these topics are explained broadly in this report. The Final Part is conclusion of our entire report.

IntroductionA companys work frame and performance always depends on their human resource management department. Because of the select and develop employees for the company, includes conducting jobanalyses,planningpersonnelneeds,recruitingtherightpeople for the job, orienting andtraining,managingwagesandsalaries,providingbenefitsandincentives, evaluatingperformance, resolvingdisputes, and communicating with all employees at all levels.Examplesof corequalitiesof HR management are extensiveknowledgeof theindustry,leadership, and effectivenegotiationskills. Formerlycalledpersonnel management.There are some process to manage human resourceHuman Resource Management is important for banks because banking is a service industry. Management of people and management of risk are two key challenges facing banks. How employee manage the people and how employee manage the risks determines employeer success in the banking business. Efficient risk management may not be possible without efficient and skilled manpower. Banking has been and will always be a "People Business". Though pricing is important, there may be other valid reasons why people select and stay with a particular bank. Banks must try to distinguish themselves by creating their own niches or images, especially in transparent situations with a high level of competitiveness. Now a Days Most of the banks never used to believe in training before. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth the time and efforts involved. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. Organizations have now realized the importance of corporate training. Training is now considered as more of retention tool than a cost. In coming times, the very survival of the banks would depend on customer satisfaction. Those who do not meet the customer expectations will find survival difficult. Banks must articulate and emphasize the core values to attract and retain certain customer segments. Values such as "sound", "reliable", "innovative", "international", "close", "socially responsible" etc. need to be emphasized through concrete actions on the ground and it would be the banks human resource that would deliver this.Objective Of the StudyEvery task depends on a particular aim. Without objective never a study can reach to its destination. The main objectives of this study are to find out the overall HRM process of Prime Banks. The objectives of the study are mentioned as under:1. To know overall HRM process of Prime Banks.2. To acquire knowledge about their recruitment process.3. To know the factors of HRM departments of Prime banks.4. To know about banks employment planning.5. To be familiar with the employee testing and selection process.6. To learn about the employee compensation and rewards.

Methodology Question survey technique was used to solicit the data. The target respondents are managerial-level employees of Prime Bank located in the Baushundhara Residential Area. The questionnaire(See. Appendix) comprised three different sections. In First Section there are Thirteen items concerned with human resource management approaches. Respondents were asked to indicate their extent of agreement using a five-point Likert scale with different types of scales. Then in second Section Eight question concerned with organizational performance for the human resource system. asked the respondents to indicate the extent of these training types in their organization using a five-point Likert scale where 5 =Strongly disagree, to 1 = Strongly Agree).In third section there are 6 discussion question(See. Appendix) for what we want brief answer Discussion sessions with HR officials in Head Office. Brief because of time concern. We used the secondary source to do our extra study we needed.

Data Sources Mainly we collect our information from two sources. Both Primary and Secondary sources. Primary Sources1. interview with branch manager2. Interview with operations manager and some other employees of HRD3. Discussion sessions with HR officials in Head Office.

Secondary Sources :1. Annual report of Prime Bank Ltd. in Bangladesh.2. Performance appraisal format.3. Performance appraisal guideline provided by the Human Resources division.4. Different types of websites through Internet.Limitation Of The Study 1. Shortage of time is main limitation, which made the research a bit flaw.2. The secondary source of information was not enough to complete the report.3. In many cases, up to date information was not published.4. Confidentiality.5. There were a few questions which were tactfully avoided or not exactly answered by the respondents6. Getting relevant papers and documents ware strictly prohibited.7. Large scale research was not possible due to constraints and restrictions posed by the organization.

Company ProfilePrime Bankis a proud commercialbank and a famous financial intermediariesin Bangladesh with a long historyof achievements. Within a short period of time PBL has managed to establish itself as a strong performer in the financial market. It is rapidly expanding and enjoying a high growth rate. Prime Bank offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real estate to software. Prime Bank Limited (PBL) is considered as the leading private sector bank of the country in terms of efficiency, capital adequacy, asset quality, sound management and profitability. Prime Bank now carries on its Islamic banking operations through 5 (five) Islamic Banking Branches.. The bank is constantly serving people and the economy of the country by raising aggregate demand, production and thus creating wealth for the economy. The Prime Bank Ltd. has a responsibility to ensure efficient and effective banking operation in a sound manner. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.Prime Bank Ltd., since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, their strategy is to serve the customers through capacity building across multi-delivery channels. Their past performance gives an indication of their strength. They are better placed and poised to take their customers through fast changing times and enable them to compete more effectively in the market they operate in.

HR department of PBL is also a essential part of this profile. This department is run by a team of efficient professionals. They create and generate an environment of trust and discipline that encourages and motivates everyone in the Bank to work together for achieving the objectives of the Bank. The culture of maintaining congenial work. Environment in the Bank has further enabled the staff to benchmark themselves better against management expectations. A commitment to quality and excellence in service is the hallmark of their identity.Historical BackgroundPrime Bank was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.Prime Bank has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.Prime Bank offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.Prime Bank, since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, our strategy is to serve the customers through capacity building across multi-delivery channels. Our past performance gives an indication of our strength. We are better placed and poised to take our customers through fast changing times and enable them compete more effectively in the market they operate.Prime Bank Limited has been licensed by the Government of Bangladesh as a scheduled commercial bank in the private sector in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above , the bank, within a period of 14 years of its operations, achieved remarkable success fully meeting capital adequacy requirement of Bangladesh Bank.The VisionTo be the best Private commercial Banks of Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability.It has almost all the characteristics of the effectively worded vision statement, like it is graphic, directional, focused, feasible and desirable.

The Mission To build Prime Bank LTD. Into an efficient, market driven customer focused institution with good corporate governance structure. Continuous improvement of their business policies procedures and efficiency through integration of technology at all levels Factory Location Here we considered all the head branch of prime Bank LTD as their factory.

Address:Adamjee Court Annex Building-2,119-120, Motijheel C/A, Dhaka-1000Bangladesh

Human Resource Process of Prime Bank LTD

Human Resources Strategy of the Bank constantly strives and renews its commitment to meet the career aspiration and priorities of the employees.HR resources are becoming scarce both in quality and quantity. And, it is quite elementary that any resource that is in short supply needs to be properly managed for the benefit of society and, therefore, they are giving to pay attention to the entire Human Resource Management process. They think now need to manage the people and for this employee need to discriminate between the people, means positive discrimination. The entire spectrum of HR practice requires revolutionary changes if the banks have to survive. Managing the people is the key challenge. And, in my opinion, discrimination is the key word when dealing with people. Employee will notice that I will use this word very frequently during my discussion.They maintain their HR management in following steps:

A) Planning :

While PBL planning their people requirement they feel it is very important for employee to develop their employer brand, which is, the banks reputation as an employer to attract, engage and retain talented candidates and employees. HR department of PBL always plan for the following: A steady, carefully calibrated recruitment programmer. As rapid technological changes transform business continuous skill up-gradation. A new generation of the workforce will be working alongside an older generation asa team. Banking, in my opinion is a team work and this new situation will require cultural adjustments and therefore, change management.

B) Acquiring the right people/Recruitment:

Their recruitment tests do not focus on testing the psychological abilities of candidates to ensure that only the ones with right attitude towards the job are selected. This is why they often end up with people having brilliant minds but incapable of actually delivering on the tasks assigned.PBL always give a seriously look at lateral recruitment as an option to induct specialists atvarious levels with specific skill sets and experience pool. While we have often heard ofpeople leaving banks to join finance, legal, accounting firms, etc. seldom have we heard ofpeople leaving these professions to join banks. it is the same limited talent pool that will be targeted by Banks, Financial Institutions, Insurance, Telecom and other industries which are on fast growth track and in need of talented manpower. PBL thinks the right people will come only if they are paid competitive salaries. However, too much pay also involves moral hazard issues and invites adverse attention of external stakeholders.

C) Training/Developing their employee:PBL always requires massive re-skilling of the existing workforce and continuous skill up. PBL developing their selected employees in two ways, Fist one is Periodic training and second one is Recruitment training . To see how its employees are carrying out their jobs It happens periodically in every 6 months or 1 year its called periodic Training . Recruitment training is given to each employee every month. They thinks the best development of people is through empowerment. People at all levels in their bank must feel empowered. For this, employees workforce developing day by day. Another most important area of Human Resource Management, the foundation of which is discrimination. HR managers often focus on this segment and try to cater to their needs first. focus should be on the remaining 85% as any improvement in their performance would have a significant impact on the organizations performance. As the word of PBL manager, focus should be on the remaining 85% as any improvement in their performance would have a significant impact on the organizations performance. PBL bank helps its employees better themselves by providing feedback about the particular employees past performance. They evaluate performance of their employees by appraising performance which is comparing actually result with one desired outcome and also performance review. A fair, transparent and objective mechanism for performance management is a must for PBL because an effective Performance Management System isthe key to talent management and succession planning. The HR system/ process of PBL is that it should be objective and transparent. These traits are essential for the manpower to repose trust in the organizations systems/ processes. No HR function can be effective if it does not enjoy the trust and confidence of its constituentsCompensation First of all PBL gives their employee a good reputed fixed salary. There are many festival in our country like Eid ul fitre, Eid ul Azha, Durga Puza.in these kinds of festival PBL give bonus to their employees. Like as every other banks PBL provide bonus to the employees for achieving their estimated performance goals. PBL provides their employees all types of loan facilities. The main facility in load is, the interest rate for their employees only 7-10%. PBL provides bonus to its all employees from the profit it earns. For the future of the employee ,they provide them a good pension plan. For this they cut 10% from their employees salary every month. They provide Medical and Maternity/Delivery leave to their employees.

Training And Development ProcessTraining Benefits: Organizational Individual Personnel and Human RelationsTrainings Of PBL: Skills training Team training Ethics training Refresher training Skill Training Most common in all organizations Process is fairly simple Skills training is done for basic skills

Team training Team training throws light on: How members should communicate with each other How they have to cooperate and get ahead How they should deal with conflictful situations How they should find their way, using collective wisdom

Refresher training

Rapid changes in technology causes refresher training.Eg:- computerization in an organization. Short term courses are conducted for refresher training Training is done at regular intervals Training is conducted by outside consultants or specialists.

Ethics training Helps to establish ethical values. This training is included in a newly hired employees orientation program. Part of an ongoing developmental training program Provided to all employees as a periodic reinforcement of ethical principles.

Recruitment Process of PBL 1. External Recruitment2. Internal Recruitment

External Recruitment Policy

Recruitment Policy of Prime Bank LTD(PBL) is formulated to ensure an efficient and transparent recruitment process for the bank. Human Resources Division is responsible for all recruiting activities. Line manager and divisional head will be consulted at different stages of recruitment process by HR. Strict confidentiality will be maintained by the concerned personnel involved with recruitment process. Any exception to the following clauses can only be made by Managing Director & CEO. Educational QualificationIndividuals joining at Management Trainee & Officers (fresh, without prior experience) level at PBL have to have a graduate degree, completing four years of graduation in any discipline from UGC approved universities of Bangladesh or renowned universities from abroad. Individuals who have completed B.Com or the likes (less than four years of graduation) will need to have a post graduate degree in order to be eligible to apply for the above mentioned posts. However candidates who have done only graduation (below four years) will be eligible to apply for junior officer/Cash officer. Medical TestIn PBL, the job offer is contingent on passing medical examination conducted by the Bank nominated diagnostic centre. Reference CheckBank may go for reference check wherever deemed necessary and HR must do the reference check.

External Recruitment Process

Internal Recruitment PolicyPBL encourages people to grow from within and therefore will give equal opportunity to recruit suitable candidates internally against any vacancies. The internal job posting will be donesimultaneously with the external job advert and the internal candidate will be given equal chance to compete with the external short listed candidate for a specific job opening. Internal candidates can only apply for a specific job opening after taking approval from line manager and divisional head in the provided form. An internal candidate need to have spent at least six months in his current role to be able to apply for lateral internal move, and at least one year in his current role to be able to apply for a opening in a higher position.

Recruitment Procedure: The Prime Bank Ltd uses an in-house function which ensures consistent recruitment from opening to opening. As they use in-house functions they have greater control on the recruitment process and they can easily execute different aspects of recruitment properly. The Prime Bank Ltd pursued centralized recruitment policies. That is recruitment activities are coordinated by the Human Resource Division. The advantages of this centralization recruitment are quick decision making, elimination of duplication, limitation of time, low cost and efforts. It has a strong online application system. Generally they post the advertising on www.bdjobs.com. The applicants send their resumes through www.bdjobs.com. Later on HR Officials sorts out the resumes according to the criteria. The Head of Human Resource along with the other stuffs do all the HR activities in The Prime Bank Ltd. They maintain Human Resource Information System (HRIS) for their employees. There is fair and equal treatment in different categories of the jobs in The Prime Bank Ltd. Male and female employees are treated equally in Prime Bank. There is no gender discrimination. There is no proper guideline in The Prime Bank Ltd regarding the recruitment budget. There is little effort of HR division for continuous development in recruitment process. The world is changing and recruitment process as well. They are using the same methods and strategies year after year because they are familiar with the practice and it is working. In many cases employees has to be selected upon request provided by the Directors and in some cases Bangladesh bank officials.

Selection Process of PBL Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. It is the process of differentiating between applicants in order to identify and hire those with greaterlikelihood of success in job. The basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. Selection is a negative process as it involves rejection of the unsuitable candidates. selection is concerned with selecting the most suitable candidate through various interviews and tests. selection results in a contract of service between the employer and the selected employee.Procedure: Usually, the selection is a time consuming procedure. All the processes go through the decentralized decision making process that takes more time to complete the whole selection process. The applicants send their resumes through www.bdjobs.com. These resumes are then sorted for particular competencies. These sorted and varied resumes are then entered in the database to weed out any probable entry mistakes. The whole process takes considerable length of time as the number of applicants often reaches staggering number. The persons who are selected in the process are only contacted When selection takes place, The Prime Bank Ltd loses more qualified candidate because within this time most of the candidates joined in another organizations. In case of security guard, tea-boy and cleaner, they follow outsourcing. That is they hire the employees from employment agencies. Those workers work on temporary basis in The PBL. There is a contract between The PBL and the supplier.

ConclusionThe Prime Bank Ltd is a bank that confirms the best service to the customers as well as to the employees by Human Resource Division. The PBL is the fastest growing Bank in Bangladesh. By working in HR Division the knowledge was learnt would be helpful enough to sustain with the real organizational environment. Banking business is an emerging concept from Bangladeshs point of view. Day-by-day, it is getting popular in the middle class people. From very beginning The PBL has successfully run their business with well reputation now they create their own interest on capacity in banking business. The Banking business has a great prospect in Bangladesh Recommendation The Human Resource need identification should be done by HR department rather than divisional Head. It will facilitate the proper control of HR on different Branches and it will be possible to procure the actual number of employees. The CVs of applicants should be sorted on the basis of degree or skill as early as possible which will save valuable time to internal CV sourcing. An online database of all employees should be developed so that every employee has individual online profile account and it can be accessed at a time by more than one employee. Customer service skill are needed some improvement and effective steps should be taken to provide one stop service related training as early as possible. Computerized database of salary is required from Jan- Aug 2009. It will take more time if the data of salary is being input to database manually. Branches should make the soft copy and send it to the HR. The front liner banks are providing higher salary and picking the efficient employees. The HR should make regular assessment here. There should be sufficient budget for Recruitment, Selection and Hiring purpose. For some valuable positions, selection decisions can be made centrally to avoid time. Reference should not be used as selection criteria because there is a chance to select a wrong person. AppendixQuestions Eight items concerned with competitive strategy(1) We emphasize product quality via the use of quality circles/work improvement teams.(2) We use strict cost control systems for monitoring performance.(3) We emphasize effective co-ordination among different functional areas to ensure customer satisfaction.(4) We are constantly seeking new business opportunities.(5) We emphasize continuous improvement of products/services to secure a long-term competitive edge.(6) We set prices below those of competitors.(7) We are usually the first company to introduce new brands or products in the market. (8) We cut overhead costs to maintain competitive power.

Thirteen items concerned with human resource management approaches(1) Are job vacancies mostly filled from internal or external sources? Internal (5) External(2) How explicit are job descriptions? Explicit (5) Inexplicit (1).(3) Are there single or multiple promotion ladders? Multiple (5) Single (1).(4) What type of career path does the establishment provide to staff? Broad (5) Narrow (5) What assessment criteria are used by your performance appraisal system? Long-term Short-term (1).(6) To what extent does your appraisal system emphasize individual or group criteria in assessing performance? Group (5) Individual (1).(7) To what extent is training and development a valued function in your establishment? High (5) Low (1).(8) To what extent are career paths designed to favor functional specialization? All around(5) Professional (1).(9) How do the basic pay and salary levels you offer compare to those of other companies in your industry? High (5) Low (1).(10) Please indicate the importance that your establishment attaches to the factor of internal equity in determining rewards. High (5) Low (1).(11) Please indicate the importance that your establishment attaches to the factor of external equity in determining rewards. High (5) Low (1).(12) What degree of employment security is offered to your employees? High (5) Low (1).(13) How important is the financial incentive element included in the reward package offered? High (5) Low (1). Eight items concerned with organizational performance(1) Our overall business performance is high compared to that of others in the same industry.(2) Our staff turnover rate is highly satisfactory.(3) We have gained market share relative to our competitors.(4) Our profit growth compares favorably with that of our competitors.(5) Our return on investment compares favorably with that of our competitors.(6) Our sales growth compares favorably with that of our competitors.(7) Our return on sales is highly satisfactory.(8) Staff morale in our company compares favorably with that of our competitors