Final Body New

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Internship Report on

Employee Training and Development in Mutual Trust

Bank Limited

Prepared for

Mrs. Homayara Latifa Ahmed

Assistant Professor and

Chairperson, IBA Career Center

Supervised By

Neaz Ahmed

Professor

Faculty Advisor

Prepared by

Jaber Ahamed

ID: ZR-34

Batch- 48D

Institute of Business Administration

University of Dhaka

December 22, 2014

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Letter of transmittal

December 22, 2014

Mrs. Homayara Latifa Ahmed

Assistant Professor

Institute of Business Administration

University of Dhaka

Dear Madam:

Re: Submission of internship report on topic of Employee Training and Development in Mutual

Trust Bank Ltd.

I would like to take this opportunity to thank you for the guidance and support you have provided

me during the course of this report. Without your help, this report would have been impossible to

complete.

To prepare the report I have collected, what I believe to be most relevant information, to make my

report as analytical and reliable as possible. I have concentrated my best effort to achieve the

objectives of the report and hope that my endeavor will serve the purpose.

If you need any assistance in interpreting this report I shall always be available at your convenient

time. I hope you will find this report acceptable. Thank you for allowing me to proceed with this

study.

Yours sincerely,

Jaber Ahamed

ID: ZR-34

Batch: 48D

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Acknowledgment

During the period of preparing the report, I had gained altruistic assistance from a number of people

including my honorable and respectable supervisor Neaz Ahmed. Thanks to him not only for the

reason that he allowed me to proceed with the research, but also for his directional insight which

showed me the ways. Whenever I approached him with the problems, he was ready to show me the

right direction. It would not be possible to conduct it without him.

Thanks to Mr. Abul Ali Ahad sir, Principal of the MTB training institute for providing me all kind of

help. I also want to thank the whole team of MTB to help me in different situations during my

internship tenure.

And finally it is the Almighty who enabled me to successfully complete the term paper. I am blessed

that I have done my research work on such a topic, which motivated and encouraged me in every

moment while going through this rigorous task.

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Executive Summary

Training activities are one of the major activities in an organization. Mutual Trust Bank Training

Institute (MTBTI) is an ideal place for training the employees on different topics. An excellent team

of trainers conduct the training programs. Their dedicated work makes them possible to train

employees to improve their work performance.

Having one of the most equipped training institutes, MTB is proud of its trainers and trainees. The

report concentrated mainly on the training institute. As a private commercial bank, work pressure is

very high in Mutual Trust Bank. So they need highly professional people who are very dedicated to

their work, otherwise the whole operation will mess up. This is a great challenge for

any organization to have such talented people.

The success of a commercial bank depends largely on the quality of service rendered to the clients.

Quality of service depends on the competence and the quality of the employees of the organization.

Qualities can be improved by providing appropriate training to employees. Therefore, the authority

of MTB has to be careful in training.

As the training process of MTB is improving, the policy and process should be revised. Although the process they have been adopting so far has been somewhat effective, to adapt to the changing times, the process should be revised and streamlined.

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Table of Contents

Executive Summary ................................................................................................................................. v

List of Figures: ........................................................................................................................................ ix

List of Tables: .......................................................................................................................................... x

1 Introduction .................................................................................................................................... 1

1.1 Origin of the report ................................................................................................................. 1

1.2 Objective of the study ............................................................................................................. 1

1.2.1 Broad Objectives: ............................................................................................................ 1

1.2.2 Specific objectives: .......................................................................................................... 1

1.3 Scope: ...................................................................................................................................... 1

1.4 Methodology: .......................................................................................................................... 1

1.4.1 Primary Sources: ............................................................................................................. 2

1.4.2 Secondary sources: ......................................................................................................... 2

1.4.3 Questionnaire design ...................................................................................................... 2

1.4.4 Sampling Plan .................................................................................................................. 2

1.5 Limitations............................................................................................................................... 2

2 Literature Review ............................................................................................................................ 3

2.1 Training: .................................................................................................................................. 3

2.1.1 Types of training and development programs ................................................................ 4

2.1.2 Stages of Training and Development Programs:............................................................. 5

2.2 Development: ......................................................................................................................... 5

2.3 Difference between Training and Development: ................................................................... 6

3 Background ..................................................................................................................................... 7

3.1 Background of MTB ................................................................................................................. 7

3.2 MTB Mission: .......................................................................................................................... 7

3.3 MTB Vision: ............................................................................................................................. 7

3.4 MTB Core Values: .................................................................................................................... 8

3.5 MTB Outlook 2014 .................................................................................................................. 8

3.6 Functions ................................................................................................................................. 9

3.7 Profile of MTB: ........................................................................................................................ 9

3.7.1 Board of Directors ........................................................................................................... 9

3.7.2 Membership of Mutual Trust Bank: ................................................................................ 9

3.7.3 Management Hierarchy: ............................................................................................... 10

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3.7.4 More about MTB ........................................................................................................... 10

3.8 Human Resources ................................................................................................................. 10

3.9 Performance of Bank in 2013 ............................................................................................... 12

4 Training and Development in Mutual Trust Bank Limited: ........................................................... 13

4.1 Trainings offered by MTB: ..................................................................................................... 14

4.2 Major Types of Training of MTB: .......................................................................................... 15

4.2.1 Orientation of new employees: ..................................................................................... 15

4.2.2 Business Etiquette Training: .......................................................................................... 15

4.2.3 On the Job Training: ...................................................................................................... 15

4.2.4 Off the Job Training: ...................................................................................................... 15

4.3 Faculty of MTB training program: ......................................................................................... 16

4.4 Library of MTB Training Institute: ......................................................................................... 16

4.5 Online requisition for training: ............................................................................................. 17

4.6 Training Calendar: ................................................................................................................. 17

5 Analysis: ........................................................................................................................................ 18

5.1 Analysis and Interpretations of Data .................................................................................... 18

5.1.1 Number of employees surveyed: .................................................................................. 18

5.1.2 Types of training undergone by the employees: .......................................................... 19

5.1.3 The response whether the training meets expectation: .............................................. 20

5.1.4 Response on whether the employees can apply their training knowledge: ................ 21

5.1.5 Whether the training objective of each topic was covered and identified: ................. 22

5.1.6 Whether the Training contents were organized and easy to follow: ........................... 23

5.1.7 Whether the training materials distributed were pertinent and useful: ...................... 24

5.1.8 Whether the trainers were knowledgeable .................................................................. 25

5.1.9 Whether the instruction of was good: .......................................................................... 26

5.1.10 Whether the trainer met the training objective: .......................................................... 27

5.1.11 Whether the class participation and interaction were encouraged: ............................ 28

5.1.12 Whether adequate time was provided for questions and discussions:........................ 29

5.1.13 Use of visual aids and examples ................................................................................... 30

5.1.14 Rating the overall training ............................................................................................. 31

5.2 Major Findings: ..................................................................................................................... 32

5.2.1 Training is meeting expectation of the employees: ...................................................... 32

5.2.2 Employees are aware about their trainings: ................................................................. 32

5.2.3 The training objectives are clearly identified to the employees: ................................. 32

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5.2.4 The training materials were not much useful and pertinent: ....................................... 32

5.2.5 Time distribution was better for the training programs: .............................................. 32

5.2.6 The trainers were knowledgeable: ............................................................................... 32

5.2.7 The class participation and interaction were encouraged: .......................................... 32

5.2.8 Employees are optimistic to transfer the learning knowledge to the work: ................ 32

5.2.9 Training at outside institution is very useful: ................................................................ 33

5.2.10 Overall training quality was good: ................................................................................ 33

5.2.11 Employees get not only banking trainings but also other trainings: ............................ 33

6 Recommendation: ......................................................................................................................... 34

7 Conclusion: .................................................................................................................................... 35

8 Bibliography .................................................................................................................................. 36

9 Appendix: ...................................................................................................................................... 37

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List of Figures:

Figure 1: Stages in training and development Programs (Rao, 2009) .................................................... 5

Figure 2: Management Hierarchy (MTB, 2013) .................................................................................... 10

Figure 3: Number of Employees ........................................................................................................... 11

Figure 4: HR Milestones (MTB, 2013) ................................................................................................... 12

Figure 5: Journey of Training and Development of MTB (MTB, 2013) ................................................. 13

Figure 6: Training Calendar (Intranet of MTB, 2014) ............................................................................ 17

Figure 7: Number of employees according to gender .......................................................................... 18

Figure 8: Types of training undergone by employees........................................................................... 19

Figure 9: Training Meeting Expectation ................................................................................................ 20

Figure 10: Applying the training knowledge ......................................................................................... 21

Figure 11: Covering each training objective ......................................................................................... 22

Figure 12: Whether training contents were organized ......................................................................... 23

Figure 13: Usefulness of Training Material ........................................................................................... 24

Figure 14: Whether the trainers are knowledgeable............................................................................ 25

Figure 15: Whether the instruction is good .......................................................................................... 26

Figure 16: Trainers meeting the training objective............................................................................... 27

Figure 17: Encouraging class participation and interaction .................................................................. 28

Figure 18: Whether time was enough for discussion and questions .................................................... 29

Figure 19: Examples, Visual Aids were used ......................................................................................... 30

Figure 20: Rating the overall training ................................................................................................... 31

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List of Tables:

Table 1: Types of training ........................................................................................................................ 4

Table 2: Training and development according to different authors ....................................................... 6

Table 3: Employee Progress of Mutual Trust Bank Limited .................................................................. 11

Table 4: Number of Employees according to their gender ................................................................... 18

Table 5: Types of training undergone by the employees ..................................................................... 19

Table 6: The response whether the training meets expectation .......................................................... 20

Table 7: Whether the employees can apply their training knowledge ................................................ 21

Table 8: Whether the training objective of each topic was covered .................................................... 22

Table 9: Whether the Training contents were organized ..................................................................... 23

Table 10: Whether the training materials distributed were pertinent................................................. 24

Table 11: Whether the trainers were knowledgeable .......................................................................... 25

Table 12: Whether the instruction of was good ................................................................................... 26

Table 13: Whether the trainer met the training objective ................................................................... 27

Table 14: Whether the class participation and interaction were encouraged ..................................... 28

Table 15: Whether adequate time was provided for questions and discussions ................................. 29

Table 16: Use of visual aids and examples ............................................................................................ 30

Table 17: Rating the overall training ..................................................................................................... 31

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1 Introduction

1.1 Origin of the report

This report is prepared as per the requirements of Internship Program for completing the MBA Degree under the guidance and supervision of Neaz Ahmed, Professor of IBA; Dhaka University.

1.2 Objective of the study

1.2.1 Broad Objectives:

To know about the employee training and development program of Mutual Trust Bank

Limited (MTB)

1.2.2 Specific objectives:

To attain the broad objective, following specific objectives will be followed:

To identify the training method followed by MTB.

To know the opinion of the employees regarding the training and development.

To identify the problems of the training.

To suggest some possible recommendations to overcome the problems relating to training

and development.

1.3 Scope:

I wanted to enrich the report with all the relevant training information of MTB. But as some training

information is confidential, I could not do that. So i conducted the training and development analysis

on the trainees of MTB training institute (MTBTI). I tried to collect the training information of the

current trainees of MTBTI and conducted a survey on them with a questionnaire. After preparing the

report I can say that this study about the training will be approximately same for all employees of

MTB.I can assure that the report will be enough to show the practice of Employee Training and

development activities of the bank.

1.4 Methodology:

I have collected primary and secondary data for my paper.

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1.4.1 Primary Sources:

It was collected through questionnaire which contains relevant questions. I have collected mainly

the Primary Data for my study by utilizing the questionnaire and interview methods.

Information was collected from following officials:

1. Head of Human Resources Division

2. Head of Training programs.

3. Management Trainees & Junior Officers.

1.4.2 Secondary sources:

I have collected data from secondary sources like

1. Banks annual report

2. Different books, periodical seminar papers, training papers, manuals etc. of the bank

which are related to the topic.

1.4.3 Questionnaire design

Questionnaire was prepared with open and close-ended questions. The size of the questionnaire is

two A4 size pages and the average time of questioning was 20 minutes.

1.4.4 Sampling Plan

Population: The target population was the employees of training institute, management

trainees and junior officers.

Sample Size: The sample size was 40

1.5 Limitations

1. The one of the main limitations of the research paper was to conduct a small scale survey on

employees

2. Time period was the other limitation for collecting information

3. Insufficient supply of information. Up to date information was not available.

4. While collecting data, they did not provide much information as everyone was busy with

their work.

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2 Literature Review

Training and development programs play vital role in every organization. These programs improve

employee performance at workplace, it updates employee knowledge and enhances their personal

skills and it help in avoiding managerial obsolescence. With the use of these programs, it is easier for

the management to evaluate the job performance and accordingly take decisions like employee

promotion, rewards, compensations, welfare facilities, etc. These training programs also help the

managers in succession planning, employee retention and motivation. It creates efficient and

effective employees in the organization.

2.1 Training: According to the Michel Armstrong, Training is systematic development of the knowledge, skills and

attitudes required by an individual to perform adequately a given task or job (Armstrong, 2001).

According to the Edwin B Flippo, Training is the act of increasing knowledge and skills of an

employee for doing a particular job (Flippo, 1984)

The term training indicates the process involved in improving the aptitudes, skills and abilities of

the employees to perform specific jobs. Training helps in updating old talents and developing new

ones. Successful candidates placed on the jobs need training to perform their duties effectively.

(Aswathappa, 2000)

The principal objective of training is to make sure the availability of a skilled and willing workforce to

the organization. In addition to that, there are four other objectives: Individual, Organizational,

Functional, and Social.

Individual Objectives These objectives are helpful to employees in achieving their personal goals,

which in turn, enhances the individual contribution to the organization.

Organizational Objectives Organizational objectives assists the organization with its primary

objective by bringing individual effectiveness.

Functional Objectives Functional objectives are maintaining the departments

contribution at a level suitable to the organizations needs.

Social Objectives Social objectives ensures that the organization is ethically and socially

responsible to the needs and challenges of the society. (Goldstein, 1993)

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Further, the additional objectives are as follows:

To prepare the employees both new and old to meet the present as well as the changing

requirements of the job and the organization.

To impart the basic knowledge and skill in the new entrants that they need for an intelligent

performance of a definite job.

To prepare the employees for higher level tasks.

To assist the employees to function more effectively in their present positions by exposing them to

the latest concepts, information and techniques and developing the skills they will need in their

particular fields.

To build up a second line of competent officers and prepare them to occupy more responsible

positions.

To ensure smooth and efficient working of the departments.

To ensure economic output of required quality.

2.1.1 Types of training and development programs

Different practices are followed in different industries and in different organizations. So, the need of

training and development programs is depending on the requirements of the job profile. Therefore

there are various types of programs shared by different authors. The types of training and

development programs are as follows:

Table 1: Types of training

On- the -Job Training Off the- Job Training

Job Instructions Apprenticeship & Coaching Job Rotation Committee Assignment Internship Training Training through step by step

Programmed Instructions Class Room Lectures Simulation Exercises Business Games Case Study Method Audio- visual Method Experiential Exercises Vestibule training Computer Modelling Behavioral Modelling Role Playing Conference/ Discussion Method Workshop / Seminars (Goldstein, 1993)

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2.1.2 Stages of Training and Development Programs:

Training should be conducted in a systematic order so as to derive expected benefits from it. The

training system involves four stages, namely:

Assessment of training and development programs needs.

Designing the training and development programs.

Implementation of the training program

Evaluation of the training program

Figure 1: Stages in training and development Programs (Rao, 2009)

2.2 Development:

Employee Development Programs are designed to meet specific objectives, which contribute to both

employee and organizational effectiveness. There are several steps in the process of management

development. These includes reviewing organizational objectives, evaluating the organizations

current management resources, determining individual needs, designing and implementing

development programs and evaluating the effectiveness of these programs and measuring the

impact of training on participants quality of work life.

There are various authors who shared their views regarding the role of training and development in

different aspects. The following Table provides the opinions of different authors regarding the view

of training and development.

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Table 2: Training and development according to different authors

Authors Opinions of different authors regarding Training & Development

Yoder (1970)

Training and development in todays employment setting is far more appropriate than training alone since human resources can exert their full potentials only when the learning process goes for beyond the simple routine.

Chris (1996)

Training and development aim at developing competences such as technical, human, conceptual and managerial for the furtherance of individual and organization growth

Akinpeju (1999)

The process of training and development is a continuous one. The need to perform ones job efficiently and the need to know how to lead others are sufficient reasons for training and development and the desire to meet organizations objectives of higher productivity, makes it absolutely compulsory.

(Kulkarni, 2013)

2.3 Difference between Training and Development:

Training is concerned with the immediate improvement of specific skill of the employee, which is the

ways to make the employee more effective in his current role whereas development is a process to

make the employee efficient enough to handle critical situations in the future, which is how well he

can equip himself for the future demands. The basic difference is; training focuses on the current job

skill (Short term process) whereby the development focuses on the future job skill and efficiency

(Long term process).

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3 Background

3.1 Background of MTB

Mutual Trust Bank Ltd (MTB) is sponsored by a group of dynamic Bangladeshi Entrepreneurs,

Industrialists, Educations and Professionals. Mutual Trust Bank Ltd is one of the renowned and

scheduled private commercial banks of Bangladesh.

The Company was incorporated as a Public Limited Company in 1999, under the Companies Act

1994, with an Authorized Share Capital of BDT 1,000,000,000 divided into 10,000,000 ordinary

shares of BDT 100 each. At present, the Authorized Share Capital of the company is BDT

10,000,000,000 divided into 1,000,000,000 ordinary shares of BDT 10 each. (Mutual Trust Bank

Limited, 2014)

The Company was also issued Certificate for Commencement of Business on the same day and was

granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act 1991

and started its banking operation on October 24, 1999. As envisaged in the Memorandum of

Association and as licensed by Bangladesh Bank under the provisions of the Banking Companies Act

1991, the Company started its banking operation and entitled to carry out the following types of

banking business:

Wholesale Banking

Retail Banking

International Trade Financing

Small and Medium Enterprises (SME) Banking

NRB Banking

Privilege Banking

Card Services

The Company (Bank) operates through its Head Office at Dhaka and 101 branches. It carries out

international business through a Global Network of Foreign Correspondent Banks.

3.2 MTB Mission:

We aspire to be the most admired financial institution in the country, recognized as a dynamic,

innovative and client focused company that offers an array of products and services in the search for

excellence and to create an impressive economic value. (Mutual Trust Bank Limited, 2014)

3.3 MTB Vision: Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We envision MTB to be:

One of the Best Performing Banks in Bangladesh

The Bank of Choice

A Truly World-class Bank

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3.4 MTB Core Values:

Commitment:

Shareholders Create sustainable economic value for our shareholders by utilizing an

honest and efficient business methodology.

Community Committed to serve the society through employment creation, supporting

community projects and events and be a responsible corporate citizen.

Customers Render state-of-the-art service to our customers, offering diversified products

and aspiring to fulfill their banking needs to the best of our abilities.

Employees Be reliant on the inherent merits of the employees and honor our

relationships as part of this renowned financial institution. Work together to celebrate and

reward the unique backgrounds, viewpoints, skills and talents of everyone at the work place,

no matter what the job is.

Accountability:

As a bank, we are judged solely by the successful execution of our commitments; we expect and

embrace that form of judgment. We are accountable for providing the highest level of services along

with meeting the strict requirements of regulatory standards and ethical business practices.

Agility:

We can see things from different perspectives; we are open to change and not bound by how we

have done things in the past. We can respond rapidly and adjust our mode of operation to meet

stakeholders needs and achieve our goals.

Trust:

We value mutual trust, which encompasses transparent and candid communication amongst all

parties.

3.5 MTB Outlook 2014

MTB aims to do business in a compliant yet sustainable manner. Although profits are our ultimate goal, maintaining ethics and integrity is the key to attaining our objective. We will continue to push the boundaries to achieve our targets and enhance our capabilities along the way

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3.6 Functions The Bank offers-

Full-fledged commercial banking service including collection of deposit, short term trade

finance, working capital finance in processing and manufacturing units and facilitating

international trade.

Financial & technical support to Small Scale Industries (SSI) in order to enable them to

run their enterprises successfully.

Micro credit to the urban poor with a view to facilitating their access to the formal

financial market for the mobilization of resources.

Financing in import and export business like other commercial Banks.

General banking facility like Fixed Deposits Receipts, Savings account, Short Term

Deposits, Foreign Currency Account etc. are available here.

3.7 Profile of MTB:

3.7.1 Board of Directors

To achieve its organizational goals, the bank conducts its operation in accordance with the major

policy guidelines laid down by the Board of Directors, the highest policy making body. The

management looks after the day-to-day operation of the bank. The Board of Directors is the apex

body of the bank. The following are members of the MTB Board of Directors. (Mutual Trust Bank

Limited, 2014)

Mr. Rashed Ahmed Chowdhury, Chairman

Mr. M. A. Rouf, JP, Vice Chairman

Mr. Syed Manzur Elahi

Dr. Arif Dowla

Mr. Md. Hedayetullah

Mr. Md. Abdul Malek

Mr. Md. Wakiluddin

Mrs. Khwaja Nargis Hossain

Mr. Anjan Chowdhury

Mr. Q.A.F.M Serajul Islam

Mr. Anwarul Amin

Dr. Sultan Hafeez Rahman

Mr. Anis A. Khan, Managing Director & CEO

3.7.2 Membership of Mutual Trust Bank:

Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI, D)

The Institute of Bankers Bangladesh (IBB)

Bangladesh Foreign Exchange Dealers Association (BAFEDA)

Bangladesh Institute of Bank Management (BIBM)

International Chamber of Commerce Bangladesh Limited (ICCB)

Association of Bankers Bangladesh Limited (ABB)

Bangladesh Association of Publicly Listed Companies (BAPLC)

American Chamber of Commerce in Bangladesh (AMCHAM)

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3.7.3 Management Hierarchy:

Figure 2: Management Hierarchy (MTB, 2013)

3.7.4 More about MTB

Registered Name of the Company Mutual Trust Bank Limited Company Registration No. c38707(665)/99 on September 29, 1999 Bangladesh Bank Permission No. BRPD (P)744(78)/99-3081 on October 5, 1999 Registered Office: MTB Centre, 26 Gulshan Avenue

Plot 5, Block SE(D), Gulshan 1, Dhaka 1212 SWIFT CODE MTB BD DH Corporate Website www.mutualtrustbank.com

3.8 Human Resources

MTBians (Employees of MTB) have gone through an era of transformation between 2009 and 2013

in terms of HR practices. Back in 2008, MTB had a traditional HR system which was basically a

personnel department. As much as 70-80% of HR time was involved in manual day-to-day HR routine

operational activities. A revolutionary change has been brought in all HR functions under the

supervision of skilled HR professionals of MTB. MTB incorporated world-class benefits and facilities

for employees. For long-term sustainability in banking industry, HR has given concentration to

developing professional and specialized employees. This has been continued since 2009 to all

MTBians so that they can serve MTB clients with highly valued products and services. MTB has

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cultivated the kind of corporate culture which encourages values of forward-looking, creative

attitudes and mutual cooperation (MTB, 2013).

Table 3: Employee Progress of Mutual Trust Bank Limited

YEAR 2009 2010 2011 2012 2013

Number of

Employees

841 1,089 1,269 1,316 1,378

Figure 3: Number of Employees

All HR information is available to every employee from the first day of his/her joining. These

corporate intranet HR pages are now a popular dashboard for day-to-day uses by MTBians to know

employees information, training, circulars, upcoming events and recognition programs.

Along with that, in order to bring about greater alignment between corporate objectives and

individual growth, the Banks Performance Management System, has been streamlined in 2013. The

changes have helped to increase the ownership of appraiser and reviewer in the performance

management process.

MTB recognizes that its success is deeply embedded in the success of its human capital. During 2012-

13, the Bank continued to strengthen its HR processes in line with its MTB3V, of creating an inspired

workforce. The employee engagement initiatives included placing greater emphasis on learning

and development, launching leadership development programs, introducing internal

communication, providing opportunities to employees to seek aspirational roles through internal

job postings and periodic job rotations, streamlining the Performance Management System, making

the compensation structure more competitive and streamlining the performance-linked

rewards and incentives.

0

500

1000

1500

Y- 2009 Y- 2010 Y- 2011 Y- 2012 Y- 2012

Number of Employees

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Figure 4: HR Milestones (MTB, 2013)

The Bank has emerged as a strong employer and a brand for better working and learning

environment in the banking sector of Bangladesh. It is moving forward in 2014 by enhancing its

capability to become more adaptable, resilient, agile, and customer-focused to succeed in future.

Also MTB GHR is developing its ability to manage a diverse body of talent that can bring innovative

ideas, perspectives and views to their work by becoming an employer of choice and a model of best

practice Human Resource Management.

3.9 Performance of Bank in 2013

2013 was a focus year for Mutual Trust Bank as regards expansion and diversification of various

business lines. A strategic approach streamlining diverse business opportunities had been

undertaken, but due to the adverse economic situation it was not a completely successful business

year. They achieved a remarkable growth in diversification of business, though the year was marked

with fierce competition amongst the major players seeking to streamline themselves in order to

keep pace with transformation.

As of the year 2013, MTBs total assets along with subsidiaries had risen to 8.91% over 2012,

reaching BDT 101,464 million. Accompanying this quantitative growth was an improvement in asset

quality, with careful risk management measures contributing to high quality loans and advances. The

NPL ratio of the bank decreased to 3.62% from 3.69%, which is still much lower than that of the

countrys NPL (MTB, 2013).

In 2013, Net Income increased by 74.84%, to BDT 573 million from BDT 328 million over the previous

year. A number of successful strategies were taken in 2013, including steady growth of savings and

lending businesses, development of more innovative and customer-centric financial products.

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4 Training and Development in Mutual Trust Bank Limited:

The Bank has built a training infrastructure which is state-of-the-art: Mutual Trust Bank Training

Institute (MTBTI).It is situated in MTB square, 210/A/1 Tejgaon Industrial Area, Tejgaon, Dhaka 1208.

The agship in-house programs of MTBTI include the induction program for new entrants and credit

and foreign exchange programs for building a pool of specialists in the respective domains. External

programs for team- building, leadership, organizational development, management development

programs and people management programs have been organized for all employees. As a part of

leadership and management development program, MTB has recruited 75 Management trainees

(MMT2011, MMT2012, MMT2013, MMT 2014) from 2011 to 2014. They go through a rigorous cross-

departmental and branch exposure training.

Mutual Trust Bank ltd always gives great importance on training and development of its employees.

Thats why it has its own training institute with qualified people who are arranging trainings for the

employees of MTB. It believes that employees can provide better service if they are trained well. The

Human Resource department wants to ensure a dedicated team of well trained employees who can

serve the customers as well as the bank by their expertise. Different types of trainings are offered to

the employees according to the bank rule. Most of the trainings are regarding banking activities and

the trainings are well structured.

Figure 5: Journey of Training and Development of MTB (MTB, 2013)

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4.1 Trainings offered by MTB: Trainings that are offered from MTB to its employees: Foundation course

General Banking

Foreign Exchange Operations.

Credit Management

SME Financing

Banking Laws and Regulations

Anti-money laundering policies and implementation

BASEL-II Implementation

IT Securities and Information System in Bank

Customer service Intelligence

CIB reporting

SBS I,II & III

Credit Risk Grading

UCPDC -600

Prevention of Malpractices in Bank

Retail Banking

Treasury operation

Workshop for problem and solving as per department requirement

Loans and advances reporting for submission to BB

Internal control risk Management

Foreign exchange risk management

Basic Accounting Concept for Bankers

Training at other institutes (e.g. BIBM)

Other trainings including foreign training (Intranet of MTB, 2014)

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4.2 Major Types of Training of MTB:

The major types of training are:

Orientation of new employees

Business etiquette training

On The Job Training

Off The Job Training

4.2.1 Orientation of new employees:

This orientation can strengthen the new employees relationship with the organization. This

program integrates new employees into company and makes them feel comfortable and

welcome. It is an important step in helping them adjust to the workplace and the job. It gives a

brief idea about the mission and vision of the company.

4.2.2 Business Etiquette Training:

MTB arrange business etiquette training to all of its employees to provide an idea about the

culture of the company. In this training several things like dining etiquette, communication

basics, dress code, speaking style, and presentation style are discussed. This program helps

employees to get the real picture of companys expectation from them.

4.2.3 On the Job Training:

During on the job training, a trainee gets the opportunity to have the firsthand experience of the

banking activities. They are posted in different branches or any department of head office to

practically see the process. During on the job training say, general banking, the officers are

required to undergo rotation in general banking activities. Similar process is followed in case of

CRM & Foreign Exchange.

4.2.4 Off the Job Training:

To get better performance from the employees MTB also arranges some off job training. They are

(Intranet of MTB, 2014):

Class Room Training or Lecture

Video Presentation

Laboratory Training

Case Study

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Class Room or lecture

This is the most common and simplest form of off job training. In this process, lecturers from

different department are called to take the class on a specified subject. Mostly the veteran

bankers take the class. Employees from different departments can participate in this training.

Video Presentation

It allows the trainee to solve a specific problem, and receive immediate feedback using the

videos. This training is very much communicative and helpful for the trainees. Different messages

can be given perfectly through this video presentation.

Team building training

It is designed to develop the interpersonal skills, which can help them for future job

responsibilities. Its main objective is to develop the skills of an employee to work effectively in a

team.

Case Study

It attempts to simulate decision making situation that trainee might find on the job. The trainee

must make certain judgment and identify possible solution to the problem. This training is very

much important for management employees. By this training they learn about the real

hypothetical circumstances.

4.3 Faculty of MTB training program:

The training institute has built up a pool of knowledgeable/competent trainer within the bank. In

addition to permanent and professional trainers, speakers are drawn from operational side so

that on the job experience may be exchanged and shared. Over and above, speakers from Central

Bank, professional training institutions, universities, research organizations and Govt.

organizations are also invited to share views and experience. Senior and retired bankers are also

regularly invited.

4.4 Library of MTB Training Institute:

The institute has a good collection of books, journals and magazines. The books are mainly on

subjects like banking, economics, accounting, management and marketing etc. The books are

issued the employees only. There is enough space in the library to sit and read different kinds of

books.

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4.5 Online requisition for training:

It is a very innovative idea for MTB. There are some moments when employees think that they

need some training in a specified subject. To help them understand and get the training they

need, they can go to MTB Intranet and give nomination for the training. If there are a certain

number of people for a specified training then the training institute arranges that training. This

online requisition for training is very popular in MTB.

4.6 Training Calendar:

In MTB intranet there is a training calendar open for all. From this calendar the employees can

see what training is currently operating and if they find it important then they can apply for it.

Figure 6: Training Calendar (Intranet of MTB, 2014)

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5 Analysis:

5.1 Analysis and Interpretations of Data

5.1.1 Number of employees surveyed:

I surveyed 40 employees of the MTB. Among them 28 were male and rest of them were female.

Table 4: Number of Employees according to their gender

Gender

Number Percentage

Male

28 70%

Female

12 30%

Figure 7: Number of employees according to gender

Analysis: From the table we see that the 70% employees are male and 30% of the employees are

female.

Male 70%

Female 30%

Percentage of employee according to Gender

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5.1.2 Types of training undergone by the employees:

Table 5: Types of training undergone by the employees

Type Number of respondents Percentage

On the Job training only 10 25.00%

Off the job training only 8 20.00%

Both 22 55.00%

Figure 8: Types of training undergone by employees

Concept: On job and off job training both are important while training an employee. Sometimes on

job training becomes more effective for the employees because employees get more experience and

practical example from this training than off job trainings.

Analysis: From the above illustration we can see, the off job training only figure is 20%, on job only is

25 % and both is 55%. MTB focuses on both kind of training to get the utmost benefit from the

employees. Off the job trainings are effective for learning the rules and regulations of the banking

whereas on the job training is effective for getting practical experiences.

On the Job training only

25%

Off the job training only

20%

Both 55%

Types of training undergone by employees

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5.1.3 The response whether the training meets expectation:

Table 6: The response whether the training meets expectation

Response Number of

respondents Percentage

Strongly agree 32 80.00%

Agree 8 20.00%

Neutral 0 0.00%

Disagree 0 0.00%

Strongly disagree 0 0.00%

Figure 9: Training Meeting Expectation

Concept: Training must meet the expectation of the trainees; if the training doesnt meet the

expectation of trainees then the full training is not worthwhile to the organization and to the

employees.

Analysis: As we can see from the above illustration, 80% employees marked on strongly agree that

the trainings met their expectations and rest 20 % marked on agree, that means they also think the

training met their expectations. None of them disagrees about the effectiveness of the training.

Strongly agree 80%

Agree 20%

Neutral 0%

Disagree 0% Strongly

disagree 0%

Training Meeting Expectation

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5.1.4 Response on whether the employees can apply their training knowledge:

Table 7: Whether the employees can apply their training knowledge

Response Number of



Agree 15 37.50%

Neutral 0 0.00%

Disagree 0 0.00%


Figure 10: Applying the training knowledge

Concept: Employees are expected to implement their learning from the training in their practical

work. If an employee become unable to apply his/her learning in the job, what he/she got from the

training then the ultimate benefit from the training is basically nothing. An employee should be able

to apply his knowledge in the job what he has learned from the training to enrich his effectiveness

toward the job.

Analysis: The illustration shows that 62.5% employees strongly believe that they will be able to apply

the knowledge learned from the trainings and 37.5% employees agree with the same statement.

Strongly agree 62%

Agree 38%

Neutral 0%

Disagree 0%

Strongly disagree

0%

Applying the training knowledge

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5.1.5 Whether the training objective of each topic was covered and identified:

Table 8: Whether the training objective of each topic was covered

Response Number of



Agree 8 20.00%

Neutral 16 40.00%

Disagree 16 40.00%


Figure 11: Covering each training objective

Concept: To deliver a fruitful training to the employees, a trainer should ensure that the training

objective for each of the topic were identified and followed and the trainees must support the

trainer to do so. It needs both efforts to meet the objective and to identify the objective of overall

training.

Analysis: From the above illustration we can see 20% employees among 40 employees agree the

training objective for each topic were identified and followed and 40% employees remain neutral

and 40% employees disagree with the statement.

Strongly agree 0%

Agree 20%

Neutral 40%

Disagree 40%

Strongly disagree

0%

Covering each training objective

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5.1.6 Whether the Training contents were organized and easy to follow:

Table 9: Whether the Training contents were organized

Response Number of



Agree 18 45.00%

Neutral 14 35.00%

Disagree 8 20.00%


Figure 12: Whether training contents were organized

Concept: To make the training more meaningful and communicative, the training content must be

easy, organized and structured. If the trainees cannot follow the training contents easily and get

stuck with the unorganized training material content then they will not be able to concentrate and

the training will not become effective.

Analysis: From the above illustration we can see that 45% employees agree that the training content

were organized and easy to follow, while 35% remain neutral and 20% disagree with the statement.

Strongly agree 0%

Agree 45%

Neutral 35%

Disagree 20%

Strongly disagree 0%

Training contents were organized

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5.1.7 Whether the training materials distributed were pertinent and useful:

Table 10: Whether the training materials distributed were pertinent

Response Number of



Agree 11 27.50%

Neutral 4 10.00%

Disagree 15 37.50%


Figure 13: Usefulness of Training Material

Concept: The training material enables the trainees to understand the training easily. Trainees can

take idea or can make themselves correct with the help of those materials. The training materials

should be easy and useful to the trainees to they can understand the topics easily.

Analysis: As we see from the above illustration 12.5% employees strongly agree that the training

materials were useful and pertinent. 27.5% employees agree that the materials were useful to them.

10% employees were neutral about this question. 37.5% employees disagree and 12.5% employees

strongly disagree regarding this statement.

Strongly agree 12%

Agree 28%

Neutral 10%

Disagree 37%

Strongly disagree

13%

Usefulness of Training Material

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5.1.8 Whether the trainers were knowledgeable

Table 11: Whether the trainers were knowledgeable

Response Number of



Agree 29 72.50%

Neutral 0 0.00%

Disagree 0 0.00%


Figure 14: Whether the trainers are knowledgeable

Concept: Training is delivered by the trainer; in this sense the trainer must be knowledgeable to

share the knowledge. If the trainer is not knowledgeable then the trainees cannot get good training

from the training program. The transfer of knowledge from trainer to trainee becomes impossible.

To conduct a good and effective training the trainers must be knowledgeable.

Analysis: From the above illustration we can see 27.5% employees strongly agree that the trainer

was knowledgeable and 72.5% employees agree with that answer.

Strongly agree 28%

Agree 72%

Neutral 0%

Disagree 0%

Strongly disagree

0%

Whether the trainers are knowledgeable

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5.1.9 Whether the instruction of was good:

Table 12: Whether the instruction of was good

Response Number of



Agree 19 47.50%

Neutral 9 22.50%

Disagree 0 0.00%


Figure 15: Whether the instruction is good

Concept: The outcome of the training depends on the quality of the instruction. If the quality of the

instruction from the instructor is better, the trainees can understand the topics discussed in the

training. To ensure a fruitful and effective training the quality of the instruction must be better.

Analysis: From above illustration we can see that 30% of the employees strongly agree that the

training instruction is good. 47.5% employees agree with that and 22.5% employees are neutral

about that.

Strongly agree 30%

Agree 47%

Neutral 23%

Disagree 0%

Strongly disagree

0%

Whether the instruction is good

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5.1.10 Whether the trainer met the training objective:

Table 13: Whether the trainer met the training objective

Response Number of



Agree 21 52.50%

Neutral 10 25.00%

Disagree 7 17.50%


Figure 16: Trainers meeting the training objective

Concept: The trainer must meet his/her training objective by delivering necessary lecture,

communicating with the trainees, sharing knowledge, giving examples. Trainees cannot get good

knowledge regarding the training if the trainer is not effective who doesnt meet the training

objective.

Analysis: From the above illustration we can see 5% employees strongly believe that the trainer met

the objectives, 52.5% employees agree with that, 25% remain neutral and 17.5% dont think the

trainer met the training objective

Strongly agree 5%

Agree 52%

Neutral 25%

Disagree 18%

Strongly disagree

0%

Trainers meeting the training objective

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5.1.11 Whether the class participation and interaction were encouraged:

Table 14: Whether the class participation and interaction were encouraged

Response Number of



Agree 27 67.50%

Neutral 0 0.00%

Disagree 0 0.00%


Figure 17: Encouraging class participation and interaction

Concept: Effective training includes feedback and good communication between the trainer and the

trainee. To make the training more effective by the equal participation, the trainer must encourage

the trainees with class participation and interaction.

Analysis: From the above illustration we can see, 32.5% employees strongly agree that class

participation and interaction were encouraged in the training class and 67.5% employees agree with

the statement.

Strongly agree 32%

Agree 68%

Neutral 0%

Disagree 0%

Strongly disagree

0%

Encouraging class participation and interaction

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5.1.12 Whether adequate time was provided for questions and discussions:

Table 15: Whether adequate time was provided for questions and discussions

Response Number of



Agree 25 62.50%

Neutral 0 0.00%

Disagree 6 15.00%


Figure 18: Whether time was enough for discussion and questions

Concept: Adequate time should be distributed for the question and discussions after the training

session. This helps the trainees to make themselves clear about the training and they can solve any

problems with discussions.

Analysis: From the above illustration we can see 62.5% employees agree and 22.5% strongly agree

that adequate time was provided for questions and discussions after the training session. And 15%

employees do not agree with that.

Strongly agree 22%

Agree 63%

Neutral 0% Disagree

15%

Strongly disagree

0%

Whether time was enough for discussion and questions

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5.1.13 Use of visual aids and examples

Table 16: Use of visual aids and examples

Response Number of



Agree 28 70.00%

Neutral 0 0.00%

Disagree 0 0.00%


Figure 19: Examples, Visual Aids were used

Concept: To make the training more attractive, informative, interesting trainers should use example,

visual aids while they give training in front of the trainees.

Analysis: From the above illustration we can see 30% of the employees strongly agree that

examples, visual aids are used in the training sessions and 70% of the employees agree with that.

Strongly agree 30%

Agree 70%

Neutral 0%

Disagree 0%

Strongly disagree

0%

Examples, Visual Aids were used

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5.1.14 Rating the overall training

Table 17: Rating the overall training

Response Number of


Excellent 5 12.50%

Good 28 70.00%

Average 7 17.50%

Poor 0 0.00%

Very Poor 0 0.00%

Figure 20: Rating the overall training

Analysis: Analysis shows that 70% of the employees think that the training was good, 12.5% think

that the training was excellent and the rest 17.5% of the trainees think that the training was average.

There was no negative comment about the overall training program.

Excellent 12%

Good 70%

Average 18% Poor

0%

Very Poor 0%

Rating the overall training

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5.2 Major Findings:

5.2.1 Training is meeting expectation of the employees:

From the analysis of the data we can say that the training that MTB organizes for its employees, is

meeting their expectation.

5.2.2 Employees are aware about their trainings:

From the questionnaire survey I have found out that, all the employees are aware about the training

programs and the implementation of the knowledge they get from the training.

5.2.3 The training objectives are clearly identified to the employees:

The training objectives are clearly identified to the employees; the employees know why they are

having the trainings and how the trainings will help them in their work.

5.2.4 The training materials were not much useful and pertinent:

Most of the employees believe that the training materials were not that much useful and relevant to

the specific training.

5.2.5 Time distribution was better for the training programs:

Most of the employees agree that the time sliced for each training course was better and they had

plenty of time to understand the training topics in the class room. But few of them disagreed with

that. Which means MTB can give some importance to this matter.

5.2.6 The trainers were knowledgeable:

From the employees response it is seen that the trainers were knowledgeable to operate the

training operation to the trainees.

5.2.7 The class participation and interaction were encouraged:

Employees think the trainers encourage themselves to participate in the class and to do interaction

regarding the training topics.

5.2.8 Employees are optimistic to transfer the learning knowledge to the work:

Employees think that they will be able to apply their knowledge that they have learned from the

training in their work.

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5.2.9 Training at outside institution is very useful:

Employees believe that training at outside institution (BIBM) are very helpful than in house trainings.

5.2.10 Overall training quality was good:

All the employees think that the overall quality of the training was good but they expect the

trainings to be better.

5.2.11 Employees get not only banking trainings but also other trainings:

Employees at MTB get not only trainings about the traditional Banking trainings. They also get some

other training like managerial trainings, interpersonal trainings and English language trainings.

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6 Recommendation:

MTB should arrange other trainings more (managerial trainings, English speaking, reading,

writing training, quick customer service trainings, etc.)

Training time for specific trainings need to be expanded.

MTB should arrange on job training rather than off job training.

Training contents should be organized and more relevant.

Employees should get comprehensive training on operating and maintaining the software

Flora.

The HR department should find out why employees think outside institution trainings are

more useful than in house trainings.

The ROI The return on investment made towards training and development activity need

to be measured.

Employees have to be aware about the cost invested by company indirectly and they will be

motivated to get the desired result.

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7 Conclusion:

Lots of new commercial banks have been established in last few years and these banks have made

this sector very competitive. The success of a bank depends on the better service from the bankers

to customers. Successful training and development can develop highly trained bankers in the banks,

who can serve the customer well, and can achieve customer satisfaction for the organization. By

proper training and development process employees become more efficient and can contribute well

in the organization in every work.

MTB is setting new standards in the Banking sector in the time of turbulent economic conditions.

From the very inception it plays a vital role in the national economy. To keep pace with the motto,

they provide proper attention on every department including the Human Resources Department. An

important function of this HR Department is Training and Development. Banking sector no more

depends on a traditional method of banking. In this competitive world, this sector has trenched its

wings wide enough to cover any kind of financial service anywhere in this world.

This report has tried to present the training and development practices in MTB. From the analysis I

found the Training and Development system is a very satisfactory one. During the time of my

internship, I got the support as per my demand for attaining this knowledge and to get proper

information about my topic.

Despite few problems in training and development section in MTB, it is improving its employee and

executive skill to reach the summit.

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8 Bibliography Intranet of MTB. (2014, December 18).

Mutual Trust Bank Limited. (2014, December 18). Retrieved from http://mutualtrustbank.com/

Armstrong, M. (2001). A Handbook of Human Resource Management Practice. Kogan Page.

Aswathappa. (2000). Human resource and Personnel Management. New Delhi: Tata Mcgraw-Hill

Publishing Company Limited.

Flippo, E. B. (1984). Personnel Management. McGraw Hill.

Goldstein. (1993). Training in Organizations: Needs Assessment, Development and Evaluation.

Monterey : Brooks/Cole.

Kulkarni, M. P. (2013). Journal of Arts, Science and Commerce. Training and Development and

Quality of Life, 10.

MTB. (2013). Annual Report. Dhaka.

Rao, P. S. ( 2009). Essentials of Human Resource management and Industrial Relations. Himalaya

Publication House.

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9 Appendix: Survey Questionnaire

Name:

Sex:

Designation:

Please tick/ indicate your impressions of the items listed below.

Questions Strongly Agree

Agree Neutral Disagree Strongly Disagree

1. The training met my expectations

2. I will be able to apply the knowledge learned.

3. The training objectives for each topic were identified and followed

4. The content was organized and easy to follow.

5. The materials distributed were pertinent and useful

6. The trainer was knowledgeable.

7. The quality of instruction was good.

8. The trainer met the training objectives.

9. Class participation and interaction were encouraged

10. Adequate time was provided for questions and discussion.

11. I will be able to apply this knowledge in my workplace

12. Examples, visual aids used

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13. What type/types of training have you undergone?

14. How do you rate the training overall?

Excellent Good Average Poor Very poor

15. What aspects of the training could be improved?

16. What elements of the training sessions did you find most worthwhile? Why?

17. Other comments?

THANK YOU FOR YOUR PARTICIPATION!

Documents

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