HR Practices in Bank

HR Practices in  Bank

 

Chapter: 1

Introduction

1.1. 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.

1.2. Overview of my Internship

This is the internship report based on the three month long internship program that I had successfully completed in BRAC Bank Limited under Human Resource Division from 11.01.2009 to 11.03.2009 as a requirement of my MBA program on Department of Business Studies, University of Dhaka.  

The Topic covers mainly the Human Resource Management and its different types of use provided by BRAC Bank Limited.

I have worked in Human Resource Division of BRAC Bank Limited especially with the Recruitment and Administration wing. The data provided by me are accurate or approximate in number.

BRAC Bank has a rich Human Resource Department. It maintains the organizational responsibilities successfully. The HR team of BRAC Bank is completely organized and well reputed team.

First two months of my internship program on Human Resource Division I have worked with the full support of recruitment wing and the last month I have with the administration wing and so others. But mainly I have worked with the Recruitment Wing and the Administration Wing.

I had the opportunity to join the recruitment procedure of Customer Relations Officer [CRO]. BRAC Bank has collected around 15000 CVs from which 6073 CVs are short listed for written exam. 1800 applicants are selected for interview from the written exam from 4500 attendants. And finally in the interview 1145 applicants are offered to join BRAC Bank as Customer Relations Officer. The total procedure of this recruitment has completed within a month.

After the recruitment of Customer Relations Officer I have worked with other types of recruitment procedure of BRAC Bank Limited. Within my three months internship around 219 employees are recruited in regular basis in BRAC Bank Limited in different procedure and system.

At the last month of my internship I have worked with the HR Administration such as leave system and configure the employee’s status etc.

Before drawing any conclusion based on this report it may be noted that the report was prepared in a very short term and there is lack in data. But still the report may be useful for designing any further study to evaluate the HR facilities provided by the banks.

Work experience in different sectors-

Core Sector	Particular	Weeks
Recruitment	Creating CRO Recruitment Data	2
	Arranging Written Exam & Interview for Recruiting CRO	2
	Arranging Interview for Recruitment	3
	Creating Personal File of CRO	2
Administration	Work with Leave Process	3
	Work with Confirmation and Promotion
Total		12

1.3. Objective of the Report

The objectives of the report is:

1.      To fulfill the partial requirement of the internship program as a full credit subject of the BBA program.

2.      To know about the banking sector of Bangladesh

3.       To be accustom with the management policy or process of BRAC Bank Ltd. in Bangladesh.

4.      To get an overall idea about the HRM policies and practices of BRAC Bank Ltd.

1.4. Scope of the Study

The presentation of the organizational structure and policy of BRAC Bank concerning Human Resource Development are considered as the scope of this report. An infrastructure of the organization has been detailed, accompanied by a global perspective and look into the future. The range of this report is limited to the overall description of the company, its services, and its position in the industry and its running strategies of personnel’s. The scope of the study is limited to organizational setup, functions, and performances in board and finance.

1.5. Methodology

Primary data sources:

1.      Practical banking work

2.      Personal discussion with the officers and executives of BBL.

3.      Personal interview with the customers.

In collecting primary data we use sampling technique, specifically we use purposive sampling. Purposive sampling gives us some additional advantages than that of random sampling. As our internship program is only for 3months, it is not possible to survey randomly. We make survey only that people who can give us information related my report.

Secondary data sources:

1.      Annual report, publications, training materials

2.      Periodical statements of the bank, brochures, booklets etc.

3.      Office circulars etc.

1.6. Limitation of the Study

Human Resource Department is the most confidential department for any organization as well as Human Resource Division in BRAC Bank Limited. Here as an intern I am allowed to get limited information for my study. 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.

Chapter -2:

Organizational overview

2.1. Name, Location & Historical Background

BRAC Bank Limited., one of the latest generations of commercial banks, which started its journey on the 4^th of July 2001 with a vision to be the absolute market leader. BRAC Bank is a commercial bank scheduled bank extending full range of banking facilities as per the directives of Bangladesh bank. It intends to set standards as the absolute market leader by providing efficient, friendly and modern fully automated on-line service on a profitable basis. BRAC Bank in surviving in the large arena through its unique and competitive products and it is the only local bank providing 100% integrated on-line banking.

The bank is mainly owned by the largest NGO in Bangladesh-BRAC The Bank has positioned itself as a new generation Bank with a focus to meet diverse financial need a growing and developing economy.

The bank has embarked with a stated policy to promote broad based participation in the exile economy all the way through the provision of high quality banking service based on latest information technology. The bank will ensure this by increasing access to economic opportunities for all individuals and businesses in Bangladesh with a special focus on currently under served enterprises and households across the rural urban spectrum. We believe that growing the ability of underserved individuals and enterprises to build their asset base and access market opportunities will increase the economic well being for all Bangladesh.

To keep in tied with its sponsor, BRAC goals, the bank endeavors to provide mass financing especially to focus on under-served enterprises across the rural – urban area. The bank focused on relationship based Banking, as it believes that the pursuit of profit and developmental goals are mutually reinforcing. This focus makes the bank to emphasize more on to explore and access market opportunities as well as build asset base to its clients conforming significant contribution to the profitability of the Bank.

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2005and 2006. At the year end of 2006, BRAC Bank had recorded a 103 percent growth in assets, and a 65 percent growth in liabilities, with an operating profit of 84 percent over the previous year 2005.

A fully operational commercial bank, BRAC Bank 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 four years of operation, the Bank has disbursed over BDT 1200 crore in loans to nearly 32,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh.

BRAC, a national, private organization, started as an almost entirely donor funded, small-scale relief and rehabilitation project initiated by Fazle Hasan Abed to help the country overcome the devastation and trauma of the Liberation War and focused on resettling refugees returning from India. Today, BRAC has emerged as an independent, virtually self-financed paradigm in sustainable human development. It is one of the largest Southern development organizations employing 97,192 people, with 61% women, and working with the twin objectives of poverty alleviation and empowerment of the poor.

2.2. Company Profile

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shorecap International, has been the fastest growing Bank from 2004 to 2007. 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.

A fully operational Commercial Bank, BRAC Bank 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 six years of operation, the Bank has disbursed over BDT 7500 crore in loans to nearly 200,000 small and medium entrepreneurs. 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 56 branches, 30 SME Service Centers, 427 SME unit offices and 112 ATM sites across the country, and the customer base has expanded to 465,000 deposit and 187,000 advance accounts till December 2008. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

Financial performance table

Materials	2005-06	2006-07
Net loans outstanding Total deposits Return of average assets No. of borrowers No. of branch No. of employees	178.10 200.20 1.4% 21,723 310 1213	274.30 319.70 1.5% 40,799 381 3047

Figure: 2.1 Financial performance of BRAC Bank Ltd

BRAC Bank received National Award as the Highest VAT payer for the financial year 2007-2008. BRAC Bank Limited has recently received the prestigious award for being the highest VAT paying organization in national level in service industry. BRAC Bank received ICAB National Award .BRAC Bank Limited has been awarded ICAB National Award from Institute of Chartered Accountants of Bangladesh (ICAB) for one of the Best Published Accounts & Reports 2007 recently.

2.3. Vision, Mission & Objectives

• To become the second largest bank in Bangladesh.
• Recruit the best from the applicants who can be a good resource to the bank.
• Motivate the employees by ensuring attractive salary and wages payments.
• Controlling the employees by using both X & Y motivation theories.
• Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality.
• Continuous endeavor to increase fee based income.
• Constant growth in ‘Small & Medium Enterprise’ sector
• Continuous growth in Retained Assets.
• Growth in Corporate Assets through Syndications and Investment in faster growing sectors.
• Manage and control the organizational relationships and responsibilities

2.4. Organizational Structure

The board of directors is the top management and policy making comity of BRAC Bank Limited. Presently the board consists of a chairman and four directors. It is to be noted that the managing director, is also a member of the board.

The directors are appointed from amongst those who have had experiences and shown capacity in the field of finance and banking, trade, commerce, industry etc.

The chief operations officer executes all the activities under the directions of the board.

The officer and the other line and staff personnel are appointed by the bank’s own recruitment committee of Human resource Division.

Figure: 2.2 Organizational structure of BRAC Bank

2.4.1. Departments of BRAC Bank Limited:

The BRAC Bank Limited has 26 departments in three different criteria. The Departments are-

Business:

1. SME Banking.
2. Retail Banking.
3. Corporate Banking.
4. Probashi Banking.
5. Cards.
6. Treasury & Financial Institution.
7. Marketing and Corporate Affairs.

Support:

8. Company Secretariat & Regulatory & Internal Control.
9. Enterprise Risk Management.
10. Credit.
11. Human Resource Division.
12. Financial Administration.
13. Impaired Assets Management.
14. Complaint Handling Cell.
15. Credit Inspector.

Operations:

16. Retail Banking Operations.
17. SME Banking Operations.
18. Wholesale Banking Operations.
19. Probashi Banking Operations.
20. Card Operations.
21. Business solutions.
22. Technology.
23. General Infrastructure Services.
24. Central Operations.
25. Call Center.
26. PSO & MIS

2.4.2. Employee:

The BRAC Bank Limited has in different employee’s criteria. There are different types of employees working in different places inside BRAC Bank. The types of employees are-

1. 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.

2. HR Stuff:

HR temporary contract are for those categories whose Job description is such, where he/she needs to be under the direct supervision of Bank’s authority, whose performance is monitored by the Bank Management. 

3. Outsource Stuff:

Other contractual employees are not entitled for any service agreement. They will be recruited through outsource agencies. 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.

4. 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.

5. Management Trainee Officer(MTO):

Management Trainee Officers highly qualified students of BRAC Bank Limited. The MTO’s 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.

2.4.3. Job Grads of BRAC Bank Limited:

The Job Grades of regular employee of BRAC Bank Limited are as follows:

1.      Deputy Managing Director (DMD)

2.      Executive Vice President (EVP)

3.      Senior Vice President (SVP)

4.      Vice President (VP)

5.      Senior Assistant Vice President(SAVP)

6.      First Assistant Vice President

7.      Assistant Vice President

8.      Senior Principal Officer (SPO)

9.      Principal Officer (PO)

10.  Senior Officer (SO)

11.  Management Trainee Officer (Direct Recruit)

12.  Officer Grade II        

13.  Officer Grade I

2.4.4. Management Team

Management team of BRAC Bank includes the following positions and each position contains one member.

Managing Director & CEO Deputy Managing Director Chief Information Officer Head of Credit Company Secretary & Head of Regulatory & Internal Control Head of Probashi Banking Head of Human Resource Management Head of Treasury & Financial Institution Head of Marketing & Corporate Affairs Head of Corporate Banking Head of Impaired Asset Management Head of Enterprise Risk Management Chief Financial Officer Head of Technology Head of Retail Banking

Figure 2.3: management team of BRAC Bnk

2.5. Products & Services of BRAC Bank

BRAC Bank provides its customers 3main types of services including different types of products, these are:

 

(a)SME Banking

BRAC Bank is the market leader in giving loans to small and medium entrepreneurs. They have been doing it for the last five (5) years. SME Banking includes:

·         SME Network Coverage

·         SME products

i)                    SME Network Coverage:

Figure 2.5: SME Network Coverage in Bangladesh

ii)                  SME products:

BIZNESS account: an interest bearing account.

Anonno Rin: a small scale trading, manufacturing and service ventures, especially to help small and medium entrepreneurs to meet their short term cash flow shortages, and bridge the fund flow gaps.

Apurba Rin: this loan has been designed and targeted for relatively bigger business units requiring loan above tk 8 lacs to 30 lacs.

Pathshala Rin: it is a loan designed to meet the needs of small and medium sized private educational institutions, such as Kindergartens, schools and colleges.

Aroggo Rin: “Aroggo” is a loan allowed to various Health service Provider like private clinics, diagnostics centers and doctors' chambers.

Digoon Rin: This is a double loan on your deposit. Now you do not need to encash your savings rather you can take double amount of loan on your deposit for your business expansion.

Prothoma Rin:"Prothoma Rin" is a loan facility for small and medium sized business, which are operated by women entrepreneur. The product offers terminating loan facilities for the purpose of working capital finance and/or fixed assets purchase.

(b) Retail banking:

Retail banking includes car loan, deposit products and cards.

Loan Products: doctors’ loan, salary loan, secured loan, NOW loan, high Flyer loan, Top Up loan, car loan, teachers’ loan, study loan, travel loan, credit card loan etc.

Deposit products: set up fixed deposit, fixed deposit, and interest first, salary account, current account, saving account, short term deposits, EZee account, DPS, Abiram account etc.

Cards:

ATM/ Debit Card:

·         ATM Debit Card Features

·         ATM Locations

·         POS Outlet

·         Lost card/ card replacement

·         Helpline

Co-branded card:

·         Aarong

·         ALICO

·         DIA Gold

(c) Corporate Banking:

1. Corporate loan products:

·        Overdraft: This is an on-demand credit facility designed to meet day-to-day operational activities of the business, including purchase of raw materials and expenses.

·        Short Term Loan/ Revolving Loan: This scheme is to meet different short-term fund requirements of the client. Payment of duty, Tax, VAT and other expenses related to the release of goods from customs through pay orders in the name of customs authority or Bangladesh Bank cheque is payable through this scheme.

·        Lease finance: One of the more convenient long-term sources of acquiring capital machinery and equipment. The client is given an opportunity to have exclusive rights to use an asset, for an agreed period of time, against payment of rent.

·        Loan against trust receipt (LATR): This is advancement against a Trust Receipt provided to the client when the documents covering an import shipment are given without payment. Under this system, the client will hold the goods of their sale proceeds in trust for the bank, until the loan allowed against the Trust Receipt is fully paid.

·        Work Order Finance: Through this arrangement, clients can avail loan facilities against valid Work Orders up to a certain proportion.

·        Medium enterprise: The purpose of this unit is to serve medium enterprises having facility requirements like a large corporate in nature, but smaller in volumes. The facilities may range from a single-funded or non-funded limit to a composite credit facility that includes various corporate products.

2. Trade Finance:

·         Letter of Credit (LC): This facility is related to import or local purchase of different items. It is also provided for the import and export of goods (such as raw materials, machinery, equipment, any trading item).

·         Letter of Guarantee (LG): To meet different contractual requirement such as participating in Bid, Performance Guarantee and Advance Payment guarantee for different contractual requirements.

3. Corporate cash management:

NCS: BRAC Bank will collect your bills through our Bills Pay Machines in the strategic locations of the city and also at the correspondent branches, where the BRAC Bank branches are not available and at the booths.

PTS: PTS will allow you to disburse all kinds of payments anywhere in the country through our own branch network in Dhaka, Chittagong, Sylhet, Savar, Feni and the partner bank branches all over the country.

Advantages to employees: Employees automatically become BRAC Bank Salary Account Holders with special benefits and privileges and receive instant salary credit. Here are some of the features of BRAC Bank Salary Account:

·         24hour banking

·         Extended banking hours

·         Online banking

·         Payday overdraft

·         Salary loan

·         Personal loan (car loan, credit card loan, student loan, new loan, travel loan)

·         Bureau De Change

Advantages to employers:

·         Salary upload

·         Multi location salary

·         Affordability

·         Accuracy

·         Privacy

·         MIS

·         Professionalism

Cash management services: BRAC Bank's national Collection Services (NCS) is designed to assist corporate with nationwide collection requirements by providing faster funds availability in a cost- effective manner.

·         Cash collection services

·         Drop box facility

Chapter: 3

Theoretical Analysis

3.1. Definition of Human Resource Management (HRM)

According to Garry Dessler, HRM is the policies and practices that one needs to carry out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising.

Human Resource Management includes following aspects:

3.2. Definition of Recruitment

Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted.

The result is a pool of applicants from which new employees are selected.

According to Stephen P. Robbins,

“Recruitment is the discovering of potential applicants for actual or anticipated organizational vacancies. Or from another perspective, it can be looked at the linking activity bringing together those with jobs and those seeking jobs.”

·         Satisfy employee objectives

·         Aid recruitment

·         Reduce turnover

·         Minimize overtime costs

 

Chapter: 4

HR Practice in BRAC Bank Ltd

4.1. BRAC Bank: Human Resource Department

Human resource department in BRAC Bank exist to help people and organization reach their goals. Along the way, they face many challenges arising from the demands of the employees, the organization, the society. The domestic and international environments are the particularly turbulent because of the growing challenges also result from ever changing laws, especially laws that address the need for equal employment opportunity. Within these constraints, the human resource department of BRAC Bank must contribute to the organization’s “bottom line” in ways that are both ethical and socially responsible.

4.2. Functions of Human Resource Division

BRAC Bank Ltd 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.

4.3. Human Resource Division’s Wings

In Human Resource Division of BRAC Bank Limited have work with five wings. The wings are-

·         Recruitment.

·         Administration.

·         Training.

·         Pay Benefits. &

·         MIS & Strategic Planning.

4.4. 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.

4.4.1. Recruitment Process:

For the recruitment The BRAC Bank Limited use the following process

q  Direct Recruitment:

The BRAC Bank Limited has a CV Bank in HRD. In direct recruitment the HRD 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.

q  Through Advertisement:

Sometimes the HRD of BRAC Bank Limited can’t 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.

q  Internal Job Posting:

For any kind of internal job search it will operate through a circular as lotus notes or board notice. Any existing staff other than permanent also HR Temporary (minimum one year with BRAC Bank Limited) & outsource staff (minimum three years with BRAC Bank Limited). Only the Managing Director & Chief Executive Officer can allow exceptions. 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.

q  Promotion:

Promotion can be used as an effective tool for recruitment as it can serve the internal purpose for recruitment within the organization. Promotion may also take place if the job size increased and the MD/ Management Committee decide(s) to upgrade the job upon recommendation of the respective Department Head or Line Manager. The process of upgrading a job will have to be undertaken through a process of reviewing the Job Content, Responsibilities, Dimensions, Changes in the Organization Structure, etc. Full justification of the necessity of the change must be presented.

q  Transfer on deputation:

Based on requirements and needs bank can adopt that policy after taking the approval from MD’s Offices.

q  Contract as specialist/consultant/counsel

It is not a post of regular employee. It is a contractual job and these persons are directly appointed by MD with the reference of the Chairman/ Board of Directors or Management Committee.

4.4.2. Recruitment Budget:

• Managing Director & CEO will determine and analyze the necessity of manpower based on recruitment required by the Departments and projected budget based on the year after discussing with different department heads. Therefore, it is the responsibility of the management to examine the work load and carry out the job analysis and as well as looking into the real requirement of employees under various categories, to see whether an additional hand is really necessary

• Board of directors holds the authority to finally decide any matter regarding any sort of recruitment. Besides they are the supreme authority to create any kind of new position.

• BRAC Bank must recognize the importance of manpower estimation and accordingly an Organogram should be prepared for the Bank and for each Division & Branch. The Organogram shall however, not be rigid, it may be reviewed and revised when necessary from time to time. Subject to review from time to time, the competent authority as per power delegated by the Board will make the appointments.

4.4.3. Recruitment Policy:

• All regular employees will appointed by the Managing Director.
• All HR contract and outsource contract employees will be appointed by The Head of Human Resource Division.
• The schedule of recruitment will be created according to the Service Level Agreement (SLA).
• The interview board will with The Head of Department of that post, The Supporting Department Head and The Head of HRD.

4.5. Administration

The Administration is the wing that maintains and controls the employees of BRAC Bank Limited. The administration has to go with the following work.

4.5.1. Leave:

The policies followed for employee leaves management based on the types of leaves and their criteria are given below:

Annual Leave:

All officers will become eligible for annual leave of 24 working days after completion of one-calendar year. Of these 24 days 15 days must be taken as consecutive leave each year. Any pending leave may be carried forward to the next year.

Casual/Sick Leave:

Casual leave up to 14 calendar days can be granted per year to an employee who may be unable to attend duty due to sudden illness or urgent private affairs. Not more than 2 days casual leave can be taken at a time in a month.

Maternity Leave: Female (confirmed) employees will enjoy 4 months maternity leave. One employee will be entitled to avail this leave for 2 times in her entire service period.

Study Leave: Study Leave is granted to an employee Study leave of maximum 2 years can only be granted to an employee without pay and allowances provided he/she has put in at least three years of service. This Leave is only granted to those employees who have achieved a minimum of 3 years of service record with the bank and also to those who are due to retire within 5 years of the date on which he/she is likely to return from the study leave.

Leave without Pay: Leave without pay may be granted to an employee in special circumstances where no other leave is admissible under these rules. In case of Leave without Pay, the period does not exceed 60 days.

Leave during Probation Period: For sick leave in the probation period, the leave has to be specially mentioned by the department. Casual leave will be granted to probationary employees after completion of 6 months. Any leave taken prior to completion of 6 months will be adjusted against the casual leave.

Encashment Facilities of Annual Leave: Annual leave encashment facilities may be allowed to the employees for a maximum of 90 days (based on last basic) at the time of employee’s leaving the bank.

4.5.2. Probation and Confirmation:

The terms of probation are as follows:

• A person selected for appointment with less than 3 years job experience will be on probation period of one year.
• An employee with job experience of 3 years or more will be on probation for 6 months.

In the event of the probationer’s failure to show satisfactory progress and acquire required efficiency during employee’s probationary period, the appointing authority may, at its discretion, extend his probationary period by a maximum of additional 6 (six) months, or dispense with his service by giving one months notice or by paying a sum equal to one month’s pay without assigning any reason.  An officer shall become eligible for confirmation in the specified post subject to employee’s successful completion of the period of probation. 

4.5.3. Promotion:

Promotion is a continuous process by which the employee motivates for batter work; get the price for employee’s better work. In BRAC Bank there are two types of promotions-

Regular Promotion:

Regular promotion is given according to the employee’s regular performance. When the supervisor or department head of the employee evaluate that his employee is become an asset for the bank and deserve promotion then the supervisor or the department head take a promotion appraisal form from HRD and recommended the employee for promotion.

PM Promotion:

Performance Matter (PM) is the annual performance report of individual employee of BRAC Bank Limited. According to Performance Matter ranking scale the employee can get promotion in the job grade of their own.

According to the policy any employee can’t get any promotion within a year after the employee’s joining in the BRAC Bank Limited. And on the other section the employee can get promotion after six months of his previous promotion.

4.5.4. Resignation:

The following sections will display the policies of BRAC Bank Limited regarding its employees’ resignation and termination situations. This part will discuss about the policies and procedures for resignation or termination in situations when:

• A regular employee wishes to resign
• A probationary or temporary employee wishes to resign
• When a regular employee is terminated
• When a probationary or temporary employee is terminated

Resignation of Regular Employee:

A confirmed employee may leave or discontinue from the services of the bank by giving one month notice, in writing or pay to the bank as compensation an amount equal to the employee’s total pay for one month.

Resignation of Probationary or Temporary Employee:

Probationary or any temporary employee shall leave or discontinue employee’s service from the Bank by giving 15 (fifteen) days prior notice in writing of employee’s intention to do so or pay to the bank as compensation an amount equal to employee’s total pay for fifteen (15) days.

Termination of Regular Employee:

The competent authority may terminate the services of a confirmed employee or call upon him/her to resign without assigning any reason, by giving him/her one month notice in writing or on payment of one month substantive pay in lieu of such notice and the employee shall not be entitled to any form of compensation for termination of service.

Termination of Probationary or Temporary Employee

The service of a probationer or a temporary employee shall be liable to be terminated by the competent authority without assigning any reason without giving him or her any notice and the probationer or the employee shall not be entitled to any from of compensation for termination of service.

4.6. Training:

After recruiting a potential candidate the next important function of HRD is to orient the new entrant to the organization and providing the employees with all the necessary knowledge about their duties and responsibilities. This is done to ensure effective input from the employees into the organization thus, their most efficient level of performance. The training program used in the organization also ensures employee retention to BRAC Bank Limited spending in training programs for employees is not an expense, but an investment.

The training program includes:

Orientation Training In-house training Job specific training Need based local/foreign training Peer or Supervisor’s coaching E-learning: Online training and evaluation

Figure 4.2: Training Program of BRAC Bank

4.7. Pay Benefits:

Proper Compensation, benefits and rewards works as primary motivational factors for most employees. Designing an effective compensation and benefits plan also works to retain well-motivated, efficient employees in the organization.

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

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

The 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 will be no other entitlements applicable except commission based on job criteria.

4.7.1. Basic Salary:

Basic salary is the actual salary that The BRAC Bank Limited is giving the employees without any other allowances. This is the main margin of salary range. In BRAC Bank Limited there are thirty slabs of salary range for every job grades where basic salaries are is in flexible amount.

4.7.2. House Rent:

• 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.

4.7.3. 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.

4.8. MIS and Strategic Planning:

The MIS & Strategic Planning section does not follow any procedure of work, as most of the functions are project or assignment based. BRAC Bank’s 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 is 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.

Chapter: 05

Conclusion & Recommendations

5.1 Findings

As a student of MBA, Department of Management, Faculty of Business Studies, University of Dhaka; I have to complete internship program. With reference to that I was referred to BRAC Bank Ltd, and worked there for 3 months.

The following findings are obtained from my study:

• Though the organization is not in lacking of employees, but I think there is lacking of proper employees- that means “lack of right people in right place”.
• Salary structure is the greatest and largest motivational factor for an employee. But amount of salary is not sufficient to motivate them.
• Succession Planning involves having senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position. This is important because it often takes years of grooming to develop effective senior managers. But the organization has not focus yet such a succession planning.
• Some employees says that extra work load in a regular basis is a common criteria of the organization. For this reason, the bank sometime loss new employees attractiveness.
• Only the head office contains HR division and all the HR activities are controlled from the head office. For this reason, when sometimes any HR problems raised employees have to wait for a long time to solve it. Moreover, this department is not too structured.
•  Training evaluation systems are not properly used or maintained.

5.2 Conclusion

It was an honor for me that I have worked as an intern in a reputed organization like BRAC Bank Limited. 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. By working in HR Division the knowledge was learnt would be helpful enough to sustain with the real organizational environment.

5.3 Recommendations

Recommendation means to give suggestions about BRAC Bank. But as a student of BBA it is very tough to give suggestions about such a well-known, popular and successful bank. To make the bank more successful, to make it attractive to the fresher’s like us, management should focus on some following aspects:

·         Increase the number of employees in required position.

·         Make the salary structure attractive to the employee.

·         Make succession planning. A careful and considered plan of action ensures that the least possible disruption to the person’s responsibilities and therefore the organization’s effectiveness.

·         Reduce the extra workload of the employee.

·         The Human Resource Division’s control must be structured.

·         Arrange proper training for the employee. After training evaluation program must be considered in significance.