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A study on “Human Resource Management Practices in Agrani Bank
Limited – a comprehensive study”.
Submitted to,
Syeda Tasmia Tasneem
Lecturer
Department of Management Studies
Jagannath University
Submitted by,
Md. Abul Bashar
Id: B110202010
7th Batch
Department of Management Studies.
Submission Date:
LETTER OF TRANSMITTAL
Date:
To
Syeda Tasmia Tasneem
Lecturer
Department of Management Studies
Jagannath University, Dhaka.
Subject: Submission of Internship Report on “Human Resource Management Practices in Agrani Bank
Limited – a comprehensive study”.
Dear Madam,
This is my internship report on “Human Resource Management Practices in Agrani Bank Limited – a
comprehensive study”. I am submitting this report as the part of fulfilling my BBA degree. In case of
preparing this report, I tried my best to make the report informative and to follow your instructions as well
as the instructions given by my organization supervisor. The full report is based on my practical experience
in Agrani Bank limited, Farmgate Branch. I have found the experience quite interesting and the guidance of
my supervisors and with the help of all the members of all the departments. I have tried my level best to
prepare an effective report.
Consequently, I am transmitting this report to your very concern. Hopefully, you will discover the report
informative approach as a hallmark of my hard work. In case of any further clarification or elaboration
regarding this report I would welcome the opportunity to consult with you to explore how my findings
could best meet your needs.
Sincerely yours,
Md. Abul Bashar
ID: B-110202010
7th Batch
Department of Management Studies.
Jagannath University, Dhaka.
ACKNOWLEDGEMENT
The successful completion of this Internship report has seen many helping hands, without which this would
have not been possible. I specially want to acknowledge Mr. Md. Sulaiman Mollah, General Manager of
Farmgate Branch; Mr. Md. Syedul Islam, 2nd Officer; Mr.Md.Abdul Halim, Senior Officer; Mr. Md.
Monsur Islam, Senior Officer; Mr. Md. Saiful Islam and other officers of Farmgate Branch. Without their
kind supervision, preparing this report would have been very difficult. I am also thankful to Mrs.Nilufar
Begum for providing me all the relevant and available information to have a clear concept on the subject.
They provide me the guidance and counselling during my entire internship program. Their continuous and
well-thought feedback enabled me to make this report a comprehensive one.
I would like to express my sincere gratitude to my academic supervisor Syeda Tasmia Tasneem, Lecturer,
Department of Management Studies, Jagannath University for his constant guidance, supervision and
feedbacks which enabled me to prepare a well-executed report.
Above all, I want to acknowledge and most grateful almighty Allah, the most merciful blessing me with
patience and tenacity of mind to complete the requirements for the degree successfully.
EXECUTIVE SUMMARY
Department of Management Studies, Jagannath University demands every student of BBA program to go a
process of 45 days’ internship program and to submit the report based on the observations and work done
during the training process. It is actually the review of any organization currently running its business,
having its competitors. The study of the functions and practices of the human resources department is the
main purpose of this internship. It is also meant for finding the weaknesses and shortcomings and then
giving the suggestions for improvement.
I went through the all functions and processes of the human resources department of the organization e.g.
job analysis, recruitment, staffing, employers training, performance appraisal processes, compensation
packages, retention of employees etc. I choose the Agrani Bank Limited to make the reports. I try my best
to figure out the HRM practices that follow in the bank. The banks have follow the traditional ways of
recruitment and selection process. But now try to modify their old system and try to ensure a standard
means of selection and training methods. It also introduces the new methods of compensation, rewards and
benefits system to motivation the employees. The bank also introduces the modern methods of performance
appraisal and rewards employees according to their ability. All the activities HRM department has made the
tasks of Agrani Bank effective that helps to capture more loyal customers. The hazards and the problems
faced or found in the organization are in its promotional procedures. The employees are not satisfied with
the working of the promotional board. Some employees working in different capacities were not satisfied
with the present status of the work assigned to them. Moreover, the employees are not trained according
their specialized task performed by him/her .They are given general training so while performing the
specified task, it is difficult for him to be more accurate and it affects his/her efficiency. In the era of
specialization, the employee should be trained according to specified task and the refreshing process should
be conducted time .
TABLE OF CONTENTS
Letter of Transmittal................................................................................................................................1
ACKNOWLEDGEMENT.............................................................................................................................2
Executive Summary.................................................................................................................................3
Table of Contents....................................................................................................................................4
Introduction.............................................................................................................................................8
Background of the Study.....................................................................................................................8
Origin of the Study...............................................................................................................................8
Objective of the Report:......................................................................................................................9
Scope of the study...............................................................................................................................9
Benefits of the Study:..........................................................................................................................9
Limitations of the Study.....................................................................................................................10
Methodology of the Study.................................................................................................................10
Literature Review..................................................................................................................................11
Human Resource Management.........................................................................................................11
Human Resource Management Practice...........................................................................................11
Planning.............................................................................................................................................12
Recruitment and selection.................................................................................................................12
Socialization and Orientation.............................................................................................................12
Training and Development................................................................................................................13
Performance Management................................................................................................................13
Benefits and Rewards........................................................................................................................13
Compensation....................................................................................................................................14
Career Development..........................................................................................................................14
HRM practices in improving Service Quality......................................................................................14
Employee satisfaction........................................................................................................................15
The importance of HRM in Bank........................................................................................................15
Company Overview...............................................................................................................................17
Corporate Profile...............................................................................................................................18
Vision.................................................................................................................................................19
Mission..............................................................................................................................................19
Motto.................................................................................................................................................19
Values................................................................................................................................................19
Strategic Objectives...........................................................................................................................19
Services of Agrani Bank Limited.........................................................................................................20
Products of Agrani Bank Limited........................................................................................................22
SWOT Analysis of ABL........................................................................................................................23
Hierarchy of ABL................................................................................................................................25
Human Resource Management Practices in Agrani Bank Limited.........................................................27
History of Human Resource management.........................................................................................27
Definition of Human Resources Management...................................................................................28
Objective of HRM...............................................................................................................................29
Basic Principles of HRM.....................................................................................................................29
HRM Model & Theory........................................................................................................................29
Human Resource Management Practices..........................................................................................30
Functions of Human resource............................................................................................................30
Importance of HRM:..........................................................................................................................31
Human Resource Planning in Agrani Bank Limited............................................................................31
Manpower planning and Career Development.................................................................................31
Human Resource Demand.................................................................................................................32
Supply of labor:..................................................................................................................................33
Job Analysis.......................................................................................................................................33
Practices in Agrani Bank Limited........................................................................................................33
Recruitment Agrani Bank Limited......................................................................................................34
Selection in Agrani Bank Limited.....................................................................................................36
Training............................................................................................................................................38
Development.....................................................................................................................................38
Development and Training practice in Agrani Bank Limited..............................................................39
Performance appraisal.......................................................................................................................40
Performance appraisal Methods.......................................................................................................41
Motivation Practices in Agrani Bank Limited.....................................................................................42
Employee Relation.............................................................................................................................47
Corporate leadership and Social Responsibility.................................................................................48
FINDING AND RECOMMENDATION.......................................................................................................51
Findings of the study:........................................................................................................................51
RECOMMANDATION..........................................................................................................................52
CONCLUSION.........................................................................................................................................53
REFERENCES..........................................................................................................................................54
APPENDIX…………………....………………………………………………………………………………………………………………….. 55
Chapter- 01
Introduction
INTRODUCTION
The internship program is required course for the BBA students who are completing their graduation form
Management Studies department of Jagannath University. The total duration of this course is 45days.
Students who have completed all the required courses are eligible for this course.
In the internship program, I was attached of my organization named ‘Agrani Bank Ltd. During this time, I
learned and focused how my organization works with the help of the internal supervisor. As a result, I have
decided to make a report on “Human Resource Management Practices of Agrani Bank Limited- a
comprehensive study.”. Agrani Bank Ltd is the leading nationalized bank in this country. To maintain its
leading position in the Bangladesh, Agrani Bank Ltd. is always keen to develop long-term beneficial
relationship with trustworthy clients. To achieve this end, they have always upgraded their approaches to
achieve profitability.
The report on “Human Resource Management Practices of Agrani Bank Ltd- a comprehensive study” was
initiated as part of the Internship Program, which is a BBA Degree requirement of Department of
Management Studies, Jagannath University. The report is being submitted to Syeda Tasmia Tasneem,
Lecturer, Department of Management Studies, Jagannath University. Since the BBA program is an
integrated, practical and theoretical method of learning, the students of this program are required to have
practical exposure in any kind of business organization.
I have conducted this report on “ Human Resource Management Practices in Agrani Bank Limited”. My
hoarier supervising Syeda Tasmia Tasneem, lecturer Department of Management Studies, Jagannath
university has assigned this topic.
Background of the Study
Origin of the Study
Objective of the Report:
There had been some objectives set forward in doing this report so that it can be determined what tasks have
to done. The objectives of the report are:
To familiarize with the Agrani Bank Limited, its operation and activities, management
style and attempt to realize the gap between the theoretical knowledge with the real
business world.
To analyse the human resource management practices of the Agrani Bank Limited
Analyse the current performance appraisal format & compensation.
Propose changes mainly in the guidelines, format and management philosophy by
keeping relevance with other processes.
To find out the problems of human resource management practices of the Agrani Bank
Limited.
To learns about bank's employment planning.
First of all, it will help the researcher to get a clear idea of the HR department and its working procedures as
well as its key roles in a company.
Secondly, Human Resource is an emerging concept in Bangladesh and organizations such as a Bank put
much more emphasis on this department so this study will help the organization as well. In this regard, this
research will help to increase organization's performance in a way the employee of the organization will
think.
Last of all, it will encourage further study in this area and will provide useful guidelines for this type of
research.
It will help to find out the “HRM Practice” of Agrani Bank Limited.
The study will help to develop models & apply them effectively in HRM system.
Scope of the study
Benefits of the Study:
The study will help us to identify the type of problems that the companies usually face & it will
overcome the problems.
It was very much difficult and inconvenient to prepare a report on human resources management topic
without being attached to the HR department.
Lack of practices in human resource management.
Human resources department was reluctant to provide information, because of Difficulty in
accessing sensitive data and information.
Non-availability of some preceding year’s statistical data.
Last three months the division has conducted huge recruitment that limits my involvement in other
working areas of the division.
The secondary source of information was not enough to complete the report.
Improper combination among various departments.
The study methodology included observation of their work procedure, analysis of their information input
forms and their output documents, face-to-face communication with the clients, interviews of relevant ABL
officials.
As per study objectives mentioned, the information used in this study has been received from the following
sources:
Primary Data
Officials Records of Agrani Bank Limited.
Face-to-Face interview with the respective personnel
Questionnaire
Secondary data
Research, brochures, and various publications of Agrani Bank Limited.
Annual report, Official data book.
Website and Internet.
Limitations of the Study
Methodology of the Study
Report from HR Division.
LITERATURE REVIEW
Human resource management can be defined as understanding the globalization implications, ensuring
technology changes, managing employees, changing skills of employees, confirming continuous
improvement of organizational environment, decentralized worksite and ensuring employment involvement
in the organization (Stone, 2008)
HRM is an interconnected activity, roles, processes and other phases that are aimed to attracting,
maintaining and developing the firm HR activities in organisation and such activities are - 1) planning 2)
recruitment and selection 3) Socialization and orientation 4) training and development 5) performance
management 6) benefits and rewards 7) compensation 8) career development (Robbins & Coulter, 2002).
HRM practices are used to develop competencies that are specify the objectives and goals of the
organization and the can also add sustainable competitive advantage. (Minbaeva, 2008).HRM practices
including performance appraisal, compensation, selection practices, and training and development practices
can be collected as a means to communicate to the employees regarding various skills and behaviours to
create and sustain a competitive advantage (Werbal & DeMarie, 2005). HRM competency encompasses
organization’s ability to recruit, train and develop, maintain and motivate employees with their abilities in a
way that they fulfil the organisational goals (Zaugg, 2003). In banking sectorsboth in private and public
HRM practices give more emphasise in business strategies, managerial style and organizational culture
moderate HRM policies. Moreover, it was found that HRM policies do not have a direct impact on
organizational performance, but their impact is fully mediated by employee skills, attitudes, and behaviour
(Katou & Budhwar, 2010).
Human Resource Management
Human Resource Management Practice
HRM planning is an important aspect of job analyses and used to determine the strengths and weaknesses
of the employees to enhance their skills and capabilities (Gallagher, 2000). The process involves carrying
out a skill analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure
that supply meets demand. It has important human resource plan to ensure right number of people are at
right place with efficient skills to meet the need of the organization (Deconzo & Robbins, 2005).
HR planners in private limited bank have collected information from both internal and external sources, they forecast the demand for labor. In case of public limited bank, HR planners make planning by estimating how many people needed, determining their skills and ability and evaluating their skills, knowledge and in private banks HR planner set all the functions like estimating, training, determining and evaluating the skills and knowledge of the employees (Othman & Poon, 2007). In essence, an HR planning should aim to capture the people element of what an organisation is hoping to achieve and ensuring that the organisation has the right people in place, the right mix of skills, employees have the right attitudes and behaviors and employees are developed in the right way (Steinmetz, 2011).
Recruitment and selection a system of placing diversity talent. It is the process of seeking and attracting the
most competent to a vacant position of the organization (Analoui, 2007). It has two main aspects internal
and external. In internal aspect, recruitment is occurred internally where current employees are selected to
meet vacant place in form of promotion (Nel, 2008). In external aspect, recruitment is meet externally
throughout the methods include advertisements, employment agencies, university and internet recruitment
(Macky & Johnson, 2008). Selection is the process of choosing the right people to the firm so that he/she
can increase the productivity of the firm (Pfeffer, 1994). In case of Public bank, recruitment process is very
much complex than the private bank in case of question pattern and interview system. In public bank in
Bangladesh most of the officers are chosen among BCS holders.
Planning
Recruitment and selection
Socialization is the process of adaption that takes places as employees attempt to learn about the norms
values of the organization (Robbins, 2005). Orientation is a manner of familiarize new employees with
organization’s vision, objectives, culture, history, rules and philosophy (Deconzo & Robbins, 2005). Private
bank gives more emphasise on the orientation programme. They recognize the new employees with their
works and environment in a manner that encourage them to works effectively and efficiently. Public sectors
are very much lacing behind in the perspective (Zonko, 2008).
Training and development is referred as a learning opportunity that delivers employees with to understand
the organisational value and performance standard (Antonacopoulou, 2000). Investing in employee training
and development can enhance specific knowledge which is in return increase the profit of the organisation
(Birdi, et al., 2008). There are two main methods of training on the jobs and off the jobs.
Training programme is taken differently by the private and public sectors. Private sectors follow on the jobs
training methods as well as formed many training institute to give training and on the other hand, public
bank has follow off the jobs methods (Azmi, 2011).
Employee development is referred as to instil sound reasoning process to enhance one’s ability to
understand and interpret knowledge (Deconzo & Robbins, 2005)
Performance management within organisation is to strategize how firms can get the utmost benefits from
their employees. The approach to measuring performance can be classified as a three-step approach that
composed by objectives, appraisal and feedback (Dransfield, 2000). Performance appraisal management
includes design of work systems, facilitation of knowledge utilization, sharing and creation, and appraisal
and reward systems (Cardon & Stevens, 2004).
According to Zanko (2008), rewards are financial and non-financial incentives that provides to the
employees as a motivation to encourage them to increase productivity. Rewards has two aspects intrinsic
Socialization and Orientation
Training and Development
Performance Management
Benefits and Rewards
and extrinsic, where intrinsic rewards are referred as satisfaction derived from jobs. On the other hand,
extrinsic rewards are those benefits provided by employer like money and promotion (Martins, 2007).
Benefits are non-financial rewards that provide to attract the employees like social security, unemployment
and workers’ compensation (Harris, 2007). Employee motivation plays a vital role to encourage the
employees to the work sectors especially in the banking sectors. The research has shown that bank provide
rewards like promotion and bonus to motivate the employees and also punish the employees in form of
demotion and suspension who ignore the works both in private and public bank (Mannan, 2009).
Compensation is vital for an organisation to attract and keep high skilled workers with superior salaries and
to encourages a preferred stakeholder behaviour regarding appreciation and acceptability (Patel & Cardon,
2010). In banking sectors, even though non-financial compensation can really work as a positive stimulus
for the workers, providing monetary benefits is necessary to increase the productivity of the employees on
the individual or group level (Gomez & Meja, 1992).
Many practitioners and scholars within human resource development (HRD) field have claimed that the
utmost crucial aspect of the practices is career development in banking sectors (McLegan & Weinberger,
1998).
Career Development is the system of creating a climate that supports their staffs at all levels of the
organisation to be more resultant and productive (Sullivan, 1999). Most of the bank has emphasise to
improve their employees and enhance their career development to get competitive advantage (Boudreaux,
2001).
Research has indicated that service quality has been increasingly recognized as a critical factor in the
success of any business (Parasuraman, 1988). Service quality has been widely used to evaluate the
performance of banking services especially private bank (Cowling & Newman, 2001). The private banks
Compensation
Career Development
HRM practices in improving Service Quality
This service quality helps the bank to banks can earn high profits if they are able to position themselves
better than their competitors within a specific market (Dacies, 2005).
Moreover, banks all over the world including private and public offer similar kinds of services and try to
quickly match their competitors’ innovations. It can be noted that customers can perceive differences in the
quality of service (Chaoprasert & Elsey, 2004). Moreover, customers understand that customers will be
loyal if they receive greater value than from competitors (Dawes & Swailes, 1999). Evaluate banks’
performance mainly on the basis of their personal contact and interaction (Gronroos, 1990).
Employee satisfaction is mainly concern with the satisfactions that derived from the individual as a
professional person (Rain, 1991). In banking sectors both public and private sectors, success depends on
employee satisfaction. According to Burgoon, Buller & Woodall (1996), one of the most suitable means of
influencing employees’ satisfaction is the manners at which superior relate and communicate with
subordinators. This helps achieve the organisational goals and objectives. The way employee’s feels and
thought that their jobs being appreciated are very much essential in terms of employees’ job satisfactions
(Organ & Ryan, 2005).
The sole aim of HRM is to guarantee that the firm human capitals are being used in the fullest capability to
produces the greatest organisation results that meets with the firm needs (Nadeem, 2003). HRM in banking
is also crucial because its assist managers and employees through a change process (Hendry, Jones, Arthur
& Pettigrew, 1991). Businesses can gain enormous competitive advantages when their employees are used
effectively to drawing on their expertise and ingenuity to meet clearly defined objectives (Dessler, 2008).
As employees remain the most expensive and reliable asset of the bank, the practices of HR will remain a
vital area of discussion (Beckher & Gerhart, 1996).
At conclusion it can be said that the dynamic and uncertainty in HRM in organisations are tremendously
moving towards a radical dimension (Analoui, 2007). HRM practices have impacts on employees’
satisfaction towards organization such as recruitment and selection systems, compensation package, job
security, career development, training and development, job design and responsibilities, reward and
motivation, and working environment.
Employee satisfaction
The importance of HRM in Bank
Chapter- 02
Company Overview
COMPANY OVERVIEW
Bank is a financial institution which plays a fundamental role in forecasting the economic and social
condition of a country. In the process of acceptance of deposits and provision of loan, bank creates money.
This characteristic feature sets bank apart from other financial institution. A Bank can manipulate the money
supply through lending and investment. Banks collect deposit at the lowest possible cost and provide loans
and advances at higher cost. The difference between these is the profit for the Bank.
Agrani Bank Limited, a leading commercial bank with 930 outlets strategically located in almost all the
commercial areas throughout Bangladesh, overseas Exchange Houses and hundreds of overseas
Correspondents, came into being as a Public Limited Company on May 17, 2007 with a view to take over
the business, assets, liabilities, rights and obligations of the Agrani Bank which emerged as a nationalized
commercial bank in 1972 immediately after the emergence of Bangladesh as an independent state. Agrani
Bank Limited started functioning as a going concern basis through a Vendors Agreement signed between
the ministry of finance, Government of the People's Republic of Bangladesh on behalf of the former Agrani
Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with retrospective effect
from 01 July, 2007. Agrani Bank Limited is governed by a Board of Directors consisting of 12 members
headed by a Chairman. The Bank is headed by the Managing Director & Chief Executive Officer;
Managing Director is assisted by Deputy Managing Directors and General Managers. The bank has 11
Circle offices, 34 Divisions in head office, 62 zonal offices and 930 branches including 27 corporate and 40
authorized dealer branches.
Agrani Bank Limited is a Bank with an Authorized Capital and Paid-up Capital of Tk. 25,000.00 million
and Tk.9,110.00 million respectively. The total equity of the bank stands at 9,270.00 million as on
December 2015. The total operating profit of last year is about Tk.20,000.00 million. This bank plays a
significant impact on the growth of the economy of this country.
Genesis
Agrani Bank Limited (ABL) was incorporated as a State owned
Commercial Bank (SCB) on 17 May 2007 under the Companies Act 1994. Agrani
Bank emerged as a Nationalized Commercial Bank (NCB) following the
Bangladesh Banks (Nationalization) Order 1972 vide President's Order No. 26 of
1972. On a going concern basis ABL took over the business, assets, liabilities, rights
and obligations of Agrani Bank through a vendor's agreement signed on 15
November 2007 between the Ministry of Finance of the People’s Republic of
Bangladesh & the Board of Directors of ABL with retrospective effect from 1 July
2007.
Legal Status Agrani Limited Company (governed by the Bank Companies Act 1991)
Chairman Zaid Bakht
Managing Director &
CEO
Syed Abdul Hamid, PhD, FCA
Company Secretary Mr. Nasir Uddin Ahmed
Registered Office 9/D Dilkusha Commercial Area Dhaka 1000 Bangladesh
Authorised Capital Tk. 2500.00 Crores
Paid up Capital Tk. 991.29 Crores
Operating Profit Tk. 20,000.00 Crores
Credit Rating By CRISL (Rating declared on 26 September 2012)
Entity Rating 2014
(As Government Guaranteed Bank)
Long Term
AAA
Short Term ST- 1
Surveillance Rating 2014 (Stand Alone Basis)
A+
ST- 2
Outlook 2014 Stable
Employees 14,530 (10,725 officers and 3,805 staffs)
Corporate Profile
To become a leading Bank of Bangladesh operating at international levels of efficiency, quality and
customers service.
We will go operating ethically and fairly within the stringent framework set by our regulators. We will go
fusing ideas and lessons from best practice to explore newer ways to stay stronger and more efficient,
nimble and adaptable, and competitive as well. We will keep abreast of the advances of information and
communication technology for the benefit of our customers and employees. We will invest to strengthen the
future of the Bank.
To adopt and adapt modern approaches so as to stand supreme in the banking arena of
Bangladesh.
We value in integrity, transparency, accountability, dignity, diversity, growth and
professionalism to provide high level of service to all our customers and stakeholders inside and
outside the country.
1.
Winning at least 6.50 percent share of deposits and 5.50 percent share of loans and
advances of Bangladeshi market.
Gaining competitive advantages by lowering overall cost compared to that of
competitors.
Overtaking competitors by providing quality customer service.
Vision
Mission
Motto
Values
Strategic Objectives
Achieving technological leadership among the peer group.
Strengthening the Bank’s brand recognition.
Contributing towards the economic well-being of the country by focusing
particularly on SME and agricultural sectors.
Strengthening research capability for innovative products and services.
The services and products of Agrani Bank are possible to classify in the following broad divisions:
Personal
Corporate
Business
Agri &Rural
SME
Merchant
Islami
Personal Banking
Personal banking products are Deposit, Loan and Card services offered by ABL. Deposit services are
Savings bank account, Fixed deposit receipt, Pension sanchay scheme. These schemes enhance small
savings of limited income people to be accumulated.
Loan products at personal level are Home loan, Consumer loan, and Advance against salary. These
programs help to achieve your dreams just in time and at a minimum effort.
Agrani Bank presents Debit card for the clients sharing a network with other four renowned banks of the
country. Fees for the card are nominal. One may have a debit card from ABL and enjoy a life free from any
tension of carrying cash.
Services of Agrani Bank Limited
Corporate Banking
Agrani Bank provide deposit services like Current account and Fixed deposit for its corporate clients. On
the other hand, it arranges funds through syndication of banks for big, corporate projects. Thus the bank is
contributing to uplift the national economy to a higher level.
Business support
With a view to building up a fund of Tk. 500 crores for financing industrial
projects, ABL introduced Agrani Bank Shilpa Unnayan Bond in 1999. There are two types of bonds, 5
and 7 years. The lowest denomination is Tk. 50,000 and highest one is of Tk. 500,000. Interest rate is good
enough to attract people.
Major credit Schemes for business people are Industrial Credit, Trade Finance, Import Finance and Export
Finance. If you are a deserving candidate for any of them, or you need any documentary support
from Agrani Bank, you may pay a visit to any branch of ABL.
Agri & Rural Banking
Now bottom line farmers may have a bank account depositing Tk.10 only. Agrani Bank provides this
service to rural Bangladesh. Young generation intending to go abroad for jobs may have loan for their air
tickets and other expenses against nominal securities.
Other rural economic activities are also supported by Agrani Bank credit programs. The areas addressed are
Cultivation (flower and others), Fisheries, Poultry, Purchasing Agri and irrigation machinery and ploughing
animals. So it can be said that ABL is working to promote economic growth of Bangladesh from the very
grass root level which is 80% of national economy.
SME Banking
Small and medium enterprise of the country is one of the deserving sectors for financial support. Agrani
Bank justifiably provide credit to them under different schemes. ABL launched a joint venture program
named Small Enterprise Development Program (SEDP) with NORAD, a Norwegian agency in 1995. The
target fields were rice mill, oil mill, nursery, repairing shops, fishery, weaving and many more.
The bank is presenting micro credit and other supports to land less day labor for alleviation of poverty by
generating employment. Agrani Bank had designed some programs in collaboration with other agencies.
One such program is Employment Generation Project for Rural Poor (EGPRP). This program was
launched in 1995.
Banking for NRBs
Nonresident Bangladeshis now get banking facility through Agrani Bank. They may have an account in
taka, they may invest in Dollar Bonds. They are also allowed to have an F/C account. If you are one of
them, you can avail these opportunities. Your nominees are also entitled for these scopes.
Merchant Banking
The merchant banking unit of Agrani Bank was turned into a subsidiary entity in 2009 and named as
Agrani Equity & Investment Limited. This unit serves Issue management, Underwriting and Portfolio
management functions.
Islami Banking
Among the nationalized banks Agrani was the first to introduce Islami Banking service. Agrani
Bank provides completely interest free Shariah based banking to the clients. Deposit services offer interest
free profit in compliance with Shariah.
Agrani Bank Limited provides three types products for their customers. Those are:
Deposits
Agrani Bank Limited offers to their clients a variety of Deposit Schemes with personalized services at
competitive rates of interest. Any Bangladeshi citizen can open his/her account for any deposit scheme at
any of its Branches strategically located throughout Bangladesh. Schemes Savings Account Short Notice
Term Deposit (SNTD) Account Term Deposit Accounts Fixed Deposit Receipt (FDR) a) For 3 months &
above, but less than 6 months 1. Up to 5 crores with interest rate 7% 2. From 5 crores to 10 crores with
interest rate 7.25%. 3. More than 10 crores with interest rate 7.50%.
For 12 months & above, but less than 24 months 1. Up to 5 crores with interest rate 8% 2. From 5 crores to
10 crores with interest rate 8.25% 3. More than 10 crores with interest rate 8.5%
For 24 months & above, but less than 60 months 1. Up to 5 crores with interest rate 9% 2. From 5 crores to
10 crores with interest rate 9.25% 3. More than 10 crores with interest rate 9.50%.
Products of Agrani Bank Limited
ATM Card
The Bank also provides the ATM card for 24 hours’ transaction for their customers with 19
ATM booths. Customers can also use that for paying bill by using the Agrani Agencies.
Online Banking
Agrani Bank Limited also introduces the online Banking for their customers. The company tries to all its
branches complied under an umbrella for easy accesses for the customers.
Bonds
Agrani Bank Shilpa Unnayan Bonds of TK 50,000 TK 100,000 & TK 500,000 denominations were
introduced in July 1999 with a view to accumulating a fund of Taka 500 crores to finance industrialization.
Purchaser of this Bond can separately withdraw the accumulated interest of six months. The purchaser
enjoys a lot of Tax benefits. Agrani Bank Shilpa Unnayan Bond for 5 years Agrani Bank Shilpa Unnayan
Bond for 7 years 10% 11%. General Credit Industrial Credit Rural Credit Export Finance Import
FinanceThese credits are providing towards the customers on behalf .
As a financial organization, Agrani Bank Limited has some strengths, weakness, opportunities and threats,
to identify the strengths, weakness opportunities and treats a tool is used by me that is SWOT analysis.
Here, S represents to strengths, W refers to weakness, 0 denotes to opportunities and T indicates to threats.
STRENGTHS
State owned bank.
Wide image.
Unlimited trustiness about ABL to rural people.
High commitments for customers.
Qualified and experiences personnel etc.
SWOT Analysis of ABL
WEAKNESS
Technology: One of the major weaknesses of Agrani Bank Limited is the technology used by the bank.
With the change of time, technological advancement is essential to survive in the competition. Hence, ABL
is lagging far behind in this area. Most of the branches are not well equipped.
Promotion: When an employee gets a pro motion to the next level, he/she gets more compensation.
ABL is regular in giving promotion, but the employees get late effect of this promotion. Often there is a long
gap, for example a six month to one-year gap in getting the effect.
Deposit Amount: Agrani Bank Limited has acquired high amount of deposit till now. By the end of
2015, the deposit amount was 3,84,920 million. Most of this deposit amount remains idle in the bank. Not
even half of this amount is used as loan and advance. The lending rate has been lowered by the government,
so the interest rate from loans cannot cover the interest given on deposit. The high amount deposit bears
high cost. To reduce this cost, most of the deposit schemes have been discontinued. This has a negative
effect on clients who expects a broad range of deposit services from the bank.
Training: Agrani Bank Limited has its own training Institute ABTI (Agrani Bank Training Institute) to
strengthen the capabilities of human resources. However, it is not always possible to give thorough training.
Especially, there is a lack of specific training for specific jobs. As a result, the employee has to learn things
from the job by doing it practically.
OPPORTUNITY
High demand of credit.
High demand of small enterprise financing.
High demand of remittance facility.
High demand of investment by depositing.
THREAT
Level of Competition: Competition is always a major threat for any organization. In recent years, the
number of private bank is increasing. These banks always pose a threat for others by coming up with new
product line, innovative technology, quality services etc. Thus the level of competition raises and creates
threat for Agrani Bank Limited.
Technological Advancement: With time, technology is getting advanced. However, Agrani Bank
Limited is lagging behind. As the technology is getting advanced, most of the banks, especially private
banks are upgrading their operating system to survive in the industry. A BL is still mostly dependent on
manual work rather than technology. With time, the advancement of technology is posing a threat for the
bank.
Compensating Package: Compared to other private banks of Bangladesh, the compensation package of
Agrani Bank Limited is not attractive. Though the employees of ABL gets fair financial and other benefits,
the base pay is not sufficient (dependent on national pay scale). This poses a threat of switching banks as
other private banks are giving lucrative offer.
Political Unrest: The political unrest as well as the law and order situation of Bangladesh is always a
threat for banking industry. Especially, the events of recent years, the corruption level of our country, the
poor infrastructure are affecting the national economy. The current economic situation is very likely to
worse further. In this case, the whole banking industry is facing a big threat.
The Bank is being managed and operated by a group of highly educated and professional team with
diversified experience in finance and banking. The Management of the bank constantly focuses on
understanding and anticipating customers’ needs. The scenario of banking business is changing day by day,
so the bank's responsibility is to device strategy and new products to cope with the changing environment.
Agrani Bank Ltd. has already achieved tremendous progress within only two years. The bank has already
ranked as one of the quality service providers & is known for its reputation.
Hierarchy of ABL
CHAPTER- 03
HUMAN RESOURCE
MANAGEMENT PRACTICES IN
AGRANI BANK LIMITED
HUMAN RESOURCE MANAGEMENT PRACTICES IN AGRANI BANK LIMITED
In today’s aggressive business environment, organizations are confronted with rising challenges to attain
and optimize one of the sustainable competitive advantages named Human Resource. Though it is
considered to be the most important asset of an organization, very few organizations can successfully
exploit its potentials. Organization’s success relies on various factors; however, HRM is regarded as the
most crucial factor which directly affects the overall performance of the organization. They can achieve the
goal without any obstacles if they are provided with a satisfied workforce. The management of HRM thus
encounter different practices focusing on optimal utilization and management of their human resource in
order to achieve maximum output and a unique competitive advantage (Price, 2004).
History of Human Resource Management Key principles and practices associated with HRM date back to
the beginning of mankind. Mechanisms were developed for the selection of tribal leaders, for example,
knowledge was recorded and passed on to youth about safety, health, hunting, and gathering. More
advanced HRM functions were developed as early as 1000 and 2000 B.C. Employee screening tests have
been traced back to 1115 B.C. in China, for instance. The earliest form of industrial education, the
apprentice system, was started in ancient Greek and Babylonian civilizations before gaining prominence
during medieval times. Since the inception of modem management theory, the terminology used to describe
the role and function of workers has evolved from "personnel" to "industrial relations" to "employee
relations" to "human resources." While all of these terms remain in use, "human resources" most accurately
represents the view of workers by contemporary management theory: as valuable resources managed in the
same manner as other valuable resources, according to the authors of Human Resource Management. The
direct cause of employers seeking better HRM programs was not poor working conditions, but rather the
protests and pressures generated by workers and organized labor unions. Indeed, labor unions, which had
existed as early as 1790 in the United States, became much more powerful during the late 1800s and early
1900s. There were two other particularly important contributing factors to the origination of modem HRM
during that period. The first was the industrial welfare movement, which represented a shift in the way that
managers viewed employees—from nonhuman resources to human beings. That movement resulted in the
creation of medical care and educational facilities. The second factor was Frederick W. Taylor's (1856-1915)
Scientific Management, a landmark book that outlined management methods for attaining greater
productivity from low-level production workers. During the 1930s and 1940s the general focus of HRM
changed from a focus on worker efficiency and skills to employee satisfaction. In the 1960s and 1970s the
federal government furthered the HRM movement with a battery of regulations created to enforce fair
treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee
Retirement Income Security Act of 1974 (ERISA). During the 1970s, HRM gained status as a recognized
profession with the advent of human resource programs in colleges. By the end of the 1970s, virtually all
medium-sized and large companies and institutions had some type of HRM program in place to handle
recruitment, training, regulatory compliance, dismissal, and other related issues. HRM importance
continued to grow during the 1980s for several reasons. Shifting demographics forced changes in the way
workers were hired, fired, and managed. Other factors contributing to the importance of HRM during the
History of Human Resource management
1980s and 1990s were increasing education levels, growth of service and white-collar jobs, corporate
restructuring, more women in the workforce, slower domestic market growth, greater international
competition, and new federal and state regulations.
Human Resource Management (HRM) is to refer to the philosophy, policies, procedures and practices
related to the management of people within an organization. It is the staffing function of the organization.
Sometime identified as personnel management, it includes the activities of human resources planning,
recruitment, selection, orientation, training, performance appraisal, compensation, and safety. HRM is the
design of formal system in organization to ensure effective and efficient utilization of human talents to
accomplish organization goals. It is a set of inter related policies, practices, and programs whose goal is to
attract, socialize, motivate, maintain and retain an organization employee. HRM is a part of every
manager’s job. Each individual manager performs each of these basic human resource management
activities. So, it can be said that, Human resource management is the process of acquiring, training,
appraising, and compensating employees, and attending to their labour relations, health and safety, and
fairness concerns. It’s true that any individual who works in Human Resources must be a “people person.”
Since anyone in this department deals with a number of employees, as well as outside individuals, on any
given day, a pleasant demeanour is a must.
The objective of HRM can be described as follows:
To hire the right person for the job.
To reduce employee turnover.
To motivate people to perform at high effort levels.
Not to waste time with useless interviews.
To remove unfair labour practices.
To maintain a high morale & better human relation inside the origination.
To maintain organizational peace.
To attract competent people and retain them in the organization.
Definition of Human Resources Management
Objective of HRM
To recognize and satisfy individual needs.
Treat people with respect and dignity.
Deal with people as complete individuals.
Treat all employees with justice.
Provide people with opportunities for growth and development.
Make people feel that they are most valuable asset for the organization.
Rewards should be earned, not given.
Provide people with all relevant information.
Human Resource Management (HRM) includes all management decisions and practices that directly
impact or influence the people who work for an organization. HRM recognizes that employees enable an
organization to reach its goals, and the management of employees (human resources) is critical to
organizational outcomes (survival, competitiveness, growth and profitability). The goal of human resource
management is to help an organization to meet strategic goals by attracting, and maintaining employees and
also to manage them effectively. The basic premise of the academic theory of HRM is that humans are not
machines; therefore, we need to have an interdisciplinary examination of people in the workplace. Fields
such as psychology, industrial, engineering, industrial, legal/Paralegal Studies and organizational
psychology, industrial relations, sociology and critical theories: postmodernism, post structuralism play a
major role.
To maintain competitive advantage and achieve the ultimate goal of the organization, it is obvious that
HRM practices have great significances. HRM practices are referred to a set of policies and practices which
boost up the firm’s human capital to contribute in the achievement of business objectives. Studies have
shown that efficient use of human resources management (HRM) practices are crucial to accomplish both
Basic Principles of HRM
HRM Model & Theory
Human Resource Management Practices
long and short term objectives. HRM practices thus involve organizational investments in individual
employee’s training, decision-making, participation, promotion, and the use of performance contingent
rewards and open communication to build up satisfaction among employees toward their job (Meyer &
Allen, 1997)
It makes other factors operative and productive. People are the most valuable asset of an organization. Yet
human assets are virtually never shown on the balance sheet.
Human Resource Management is a process consisting of four functions, these are Staffing, Training &
Development, Motivation, Maintenance. For a HR manager for maintaining an effective workforce it is
necessary to know these functions.
1. Staffing: concerned with sourcing & hiring qualified employees.
The key areas of staffing are:
Strategic Human Resource Planning: HRP help the organization to achieve the corporate goals by adopting
and adjusting with changing situations for example rapid technological change
2. Recruiting: The process of discovering potential job candidates by external & internal sources.
Selection: Choosing the best incumbent for the organization.
3. Training & Development: concerned with assisting employees to develop up-to-date skills,
knowledge & ability.
The major area of Training & Development is:
Orientation: The activities involved in introducing new employees to the organization & their work units.
Employee Development: Future oriented training focusing on the personal growth of the employees.
Career Development: The sequence of positions that a person has held over his/her life.
Motivation: Helping employees exert high energy level.
Some important factors of Motivation are: Motivational Theory & job Design, Performance Appraisal,
Rewards & Compensation, Employee Benefits, Discipline
4. Maintenance: maintaining employee’s commitment & loyalty to the organization.
Maintenance consist of Safety & Health, Employee/Labour Relations, Communication.
Functions of Human resource
Importance of HRM:
Today, professionals in the human resources area are important elements in the success of any organization.
Their jobs require a new level of sophistication that is unprecedented in human resources management. Not
surprisingly, their status in the organization has also been elevated. Even the name has changed. Although
the terms personal and human resources management are frequently used interchangeably, it is important to
note that the two connote quite different aspects. Once a single individual heading the personal function,
today the human resource department head may be a vice president sitting on executive boards, and
participating in the development of the overall organizational strategy.
Human resource planning is concerned with the flow of people into, though, and out of an
organization. HR planning involves anticipating the need for labor and the supply of labor and
then planning the programs necessary to ensure that the organization will have the right mix of
employees and skills when and where they are needed.
At the end of 2015, total employees of Agrani Bank Limited were 14,530 (10,725 officers and 3,805 staffs).
Rationalization of manpower continues as part of the employee productivity enhancement programmed.
Under the World Bank Enterprise Growth and Bank Modernization Project, immediate appointments of
consultants with the rank and status of General Manager for credit, Audit, Information Technology and
Accounting are now under active consideration. About 220 security guards from 4 companies were
appointed to Head Office and different zones. The policy of out-sourcing for non-core activities will
continue in 2008 as and when required.
Major changes have been made in the criteria for promotion, especially for promotion to the rank of
Assistant General Manager and Deputy General Manager. Although recognition of seniority continued an
increased weight age was given to proven professionalism and the candidate’s future potential.
Human Resource Planning in Agrani Bank Limited
Manpower planning and Career Development
Human Resource Demand
Once HR planners have collected information from both internal and external sources, they forecast the
demand for labor. How many and what type of people will be needed to carry out the organization’s plans in
the future? These forecasts are grounded in information about the past and present and in assumptions about
the future. Different methods of forecasting the demand for labor require different assumptions. Some of the
more common assumptions are that past trends and relationships among variables will hold up in the future;
that the productivity ratio is constant (or follows a known pattern) as the number of units produced increases
and that the business plans of the organization, sales forecasts, and so on are reasonably descriptive of what
will actually happen.
Demand forecasting
This method can be divided into two categories. They are Judgmental and Mathematical. In practice, most
organizations use some combination of the two methods. In our country most of the financial institutions
use the judgmental method.
Judgmental Methods
Judgmental methods make use of knowledgeable people to forecast the future. Judgmental methods do
consider quantitative data but also allow for intuition and expertise to be factored in. these methods may be
used by small organization or by those new to HR forecasting that do not yet have the database or expertise
to use some of the more complex mathematical models.
Once the demand for labor is predicted, it is necessary to forecast the supply of labor that the organization
will already have available to meet the demand. It is basically of two types:
a. Internal supply of labour: When the demand of the manpower is fulfilling from internally is
called internal supply of the labour.
b. External supply of labour: When the demand of the manpower is fulfilling from externally is
called external supply of the labour.
Supply of labor:
The procedure for determining the duties and skill requirements of a job and the kind of person who should
be hired for it.
The process of job analysis is of two types:
1. Job Description
A list of a job’s duties, responsibilities, reporting relationship, working conditions, and supervisory
responsibilities- one product of a job analysis.
2. Job Specification
A list of a job’s “human requirement”, that is, requisite education, skills, personality, and so on – another
product of a job analysis.
Organizational Practices is not properly followed by Agrani Bank Limited. Job description and specification
exists in the organization but in the case of demand and supply of their human resource in different
department and branches they usually not assess the demand and supply gap properly, as a result employee
surplus and shortage have been found in their several department and branches as well. In this case what
they did, if there is shortage of employee they have tried to find out the area and then search employees
from other areas and by giving proper training they sent them and if there is any surplus employees exists
the branch manager or divisional head usually not informed Human Resource Department.
When a vacancy occurs and the recruiters receive authorization to fill it, the next step is a careful
examination of the job and an enumeration of the skills, abilities, and experience needed to perform the job
successfully.
Recruitment process
In the recruitment process there are couple of steps are to be followed:
Job Analysis
Practices in Agrani Bank Limited
Recruitment Agrani Bank Limited
Written test: The recruitment test is combined of both elaborative and M.C.Q. type. Usually Agrani Bank
Limited assigned this to some organization. The particular organization does all the thing. In the written test
a person has to obtain a certain mark to pass the exam.
VIVA: The candidate after qualifying written test has to face VIVA test. VIVA usually taken by the top
management of the bank. Only short listed candidate is selected finally for the job.
The Recruitment Process of the Organization
Organization
Vacant or new position occur
Perform job analysis and plan recruiting effort
Generate applicant pool via internal or external recruitment methods
Evaluate applicants via selection process
Impress applicants
Make offer
Method of recruitment
Agrani Bank Limited has followed some methods of recruitment in case of recruiting the right people to the
right place. These methods are-
Internal recruitment
Most companies fill vacancies internally whenever possible. A number of internal recruitment methods are
used for different level of jobs. In this methods, Agrani Bank Limited gives promotion and demotion the
position of the employees and meet the requirement of the employees. It is very common form of
recruitment in ABL.
External recruitment:
In addition to looking internally for candidates, it is customary for organizations to open up recruiting efforts
to the external community. Through the recruiting process, the hiring manager of Agrani Bank Limited
should stay in close touch with the recruiter. The hiring manager should examine resumes or application that
have passed initial screening by the recruiter and should also review some of the application that the
recruiter rejected during the first steps. Such involvement on the part of the hiring manager allows feedback
as to whether or not the recruiter’s decisions are consistent with the hiring manager’s preferences.
External recruitment methods are often grouped into two classes by Agrani Bank Limited 1. Informal and 2.
Formal.
1. Informal Method:
Informal recruiting methods tap a narrower labor market than formal method. Informal method includes
rehiring former employees or former cooperative education students, hiring people referred by present
employees, and hiring from among those who have applied without being solicited (such applicants are
called walk-ins or gate hires). This method is less expensive and less effective. As, Agrani Bank Limited is
state owned bank so it is common to recruit the employees by following informal methods.
2. Formal Methods:
Formal method of external recruiting entail searching the labor market for candidates who have no previous
connection to the firm. These methods traditionally have included newspaper advertising, use of
employment agencies and executive search firms and campus recruiting. Posting jobs ads on the Internet,
either on the company’s own site or a commercial job board, has also become extremely popular in the last
few years. Agrani Bank Limited mainly follow the formal methods that gives them the chance of recruiting
the sound people for the organization. ABL follow the below formal methods to meet the requirement of the
employees.
o Recruitment Advertising
o Internet Recruiting
o Employment Agencies
o Public Job Service Agencies
o Private, For-profit Agencies
o Unions
o Additional Recruiting Methods
o Campus Recruiting
o Executive Search Firms etc.
Selection the right employees are important for an organization. First own performance always depends in
part on subordinates. Employees with the right skills and attributes will do a better job for the company.
Employees without these skills wont perform effectively and as a result the firm will suffer.
Process of selection
Selection activities typically follow a standard pattern, beginning with an initial screening interview and
concluding with the final employment decision. The selection process typically consists of eight steps:
1. Initial screening interview
2. Completing the application form
3. Employment test
4. Comprehensive interview
5. Background investigation
6. A Conditional job offer
7. Medical or physical examination
8. The permanent job offers.
Selection in Agrani Bank Limited
Initial Screening
As a culmination of our recruiting efforts, organization should be prepared to initiate a preliminary review of
potential acceptable candidates. This initial screening is, in effect, a two steps procedure: (1) the screening of
inquiries and (2) the provision of screening interviews.
Completion of the Application Form
Once the in initial screening has been complicated, applicants are asked to complicate the organization’s
application form. The amount of information required may be only the applicant’s name, address, telephone
number and other information.
Employment testsOrganization historically relied to a considerable extent on intelligence, aptitude, ability and interest tests to provide major input to the
selection process.
The comprehensive interview
The applicant may be interviewed by HRM interviewers, senior manager within the organization, a
potential supervisor, potential colleagues or some or all of these.
Background investigation
The next steps in the process are to undertake a background investigation of those applicants who appear to
offer potential as employees. This can include contacting former employers to confirm the candidate’s work
record and to obtain their appraisal of his or her performance, contacting other job- related and personal
references, verifying the educational accomplishments shown on the application, checking credit reference
and criminal records, and even using third party investigation, to do the background check.
Physical/ Medical Examination
Physical exams can only be used as a selection device to screen out those individuals who are unable to
physically comply with the requirements of a job.
Conditional job offer
If a job applicant “passed” each steps of the selection process so far, it is typically customary for a
conditional job offer to be made. Conditional job offers usually are made by an HRM representative. In
essence, what the conditional job offer implies is that if everything checks out “okay- passing a certain
medical, physical or substance abuse test” the conditional nature of the job offer will be removed and the
offer will be permanent.
Job offer
Those individual who perform successfully in the preceding steps are now considered to be eligible to
receive the employment offers.
Practices in Agrani Bank Limited
Agrani Bank Ltd recruit employees both formal and informal ways. Formal recruitment usually dose
through newspaper advertisement, where entry-level employees has been recruited. In the advertisement,
criteria are mentioned specially for recruitment. But sometimes they also recruited experienced people in
med level and top level.
Informal method is also true for this bank. In this case they consider the educational level for entry level i.e.
cash officers, junior officers etc. They also recruit mid-level people those who are experienced and good
track record. Top level people recruitment also been done on contract basis.
Training refers to the methods used to give new or present employees the skills they need to perform their
jobs. Training might thus mean showing a machinist how to operate his or her new machine, a new
salesperson how to sell his or her firm’s product, or a new supervisor how to interview and appraise
employees. Training basically provide to the entry-level employees.
On the job training: It means learning by doing. It means employees training completed while he works. It is basically a practical oriented training program.
Off the job training: It means training provided to the employees out of the office in a training institute for a particular period of time i.e. for 15 to 20 days. During this time the employee does not have to go to office.
Development basically provide to the management level. Management development is any attempt to
improve managerial performance by imparting knowledge, changing attitudes, or increasing skills. The
ultimate aim of such development programs is, of course, to enhance the future performance of the
organization itself. For this reason, the general management development process consists:
Training
Development
(1) Assessing the company’s needs (for instance, to fill future executive openings, or to boost
competitiveness),
(2) Appraising the managers’ performance, and then
(3) Developing the managers (and future managers) themselves.
Method of Training and Development:
There are some training and development methods which is given as under:
Training Development
1. On the job Training2. Apprenticeship Training3. Informal Learning4. Job Instruction Training5. Lecture6. Program Learning7. Vestibule or Simulated Training8. Computer Base Training9. Training Via CD- ROM and
the internet
1. Managerial on- the- job Training2. Job Rotation3. Role Playing4. Behavior Modeling
5. In House Development Center
Training is a proven instrument for Human Resource Development, in this age of accelerated technological
improvements, training plays a key role in developing knowledge and skills and change of attitude.
Agrani Bank Training Institute (ABTI) was established on the 24th December 1976. ABTI is entrusted with
the responsibility of formulating and designing course curricula, reading materials, course contents for
imparting training (both theoretical and practical) to the officer’s/staff members. ABTI imparts training on
different banking issues for the purpose of enhancing professional and administrative efficiency of all
officers and managers. ABTI also conducts workshops, seminars, conferences, symposia, etc. on important
issues for top executives. To cope with the changes and introduction of new tools and techniques for
Development and Training practice in Agrani Bank Limited
implementation of guidelines of Government and regulatory bodies and also for the purpose of
implementation of various reform programs, ABTI stresses on actual need based training.
Agrani Bank training institute has already covered a total number of 46880 officers and staffs under
different banner of training through 1460 courses/workshop from its inception. In 2015, ABTI maintained
its momentum in the training arena covering a total of 4250 officers and staff through 67 courses/
workshops.
In 2015, ABTI undertook comprehensive training programs. The following courses/workshops are worth
mentioning: Documentary Credit, Branch Management, Banking Foundation Course, Human Relations
and Communication Development, Basic Accounting and Agrani Bank Accounting Procedures, Audit,
Inspection and Implementation, Money Laundering Prevention, Credit Risk Grading, Internal Control and
Compliance, UCPDC-600, Foreign Remittance Management, Management of non-performing Loan and
techniques of profitability, Accounts Manual and Chart of Accounts, New Capital Accord (BASEL-ll).
Communicative English in Banks, Human Resource Management, Management Development Programme
, Procedure of Suit Filing and Techniques of Suit Settlement, Maintaining Records of Fixed Assets ,
Government Receipt System and Reporting Process, Computer : PC –MS Office, Computer : Application
and Operation of Branch Banking Software, Computer: Its use in Agrani Bank, Branch Banking Software :
Bexi Bank-4000, T24 software etc.
Apart from the training courses being offered by the ABTI,436 executives/officers were nominated for
undergoing various training courses at BIBM, BPATC, BBTA, ICCB, ICICI, BAFEDA, Academy for
planning and Development, etc.
In 2015, on invitation from many foreign organizations, 33 executives/officers were sent abroad to attend
various training courses, workshops, seminars, conferences and symposia to acquire updated knowledge
and techniques of banking
Skilled human resource is nucleolus of any service-oriented organization. By keeping this in med- level they
give priority in human resource development. For human resource development and making them updated
Agrani Bank Ltd. provide training to its employees throughout the year in its well-decorated training
institute situated on the Noia Polton. The institute has own trainer and also bring specialist as a guest speaker
for provide training. Besides employees are also being sent to BIBM for better training.
Performance appraisal
Performance appraisal is defined as evaluating an employee’s current or past performance relative to his or
her performance standard. The appraisal process therefore involves:
I. Setting work standard
II. Assessing the employee’s actual performance relative to these standard and
III. Providing feedback to the employee with the aim of motivating the person to eliminate
performance deficiencies or to continue to perform above per.
Steps in Appraising Performance:
The performance appraising process contains three steps:
Define the job
It means making sure that supervisor and subordinate agree on his or her duties and job standard.
Appraise performance
Appraising performance means comparing subordinate’s actual performance to the standards that have been
set; this usually involves some type of rating form.
Provide feedback
Performance appraisal usually requires on e or more feedback sessions. Here the subordinate’s performance
and progress are discussed and plans are made for any development that is required.
The appraisal itself is generally conducted using a predetermine and formal method like one or more of
those described in this section.
Graphic Rating Scale
A scale that lists a number of traits and a range of performance for each. The employee is then rated by
identifying the scale that best describes his or her level of performance for each trait.
Alternation Ranking Method
Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are
ranked.
Paired Comparison Method
Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating
which is the better employee of the pair.
Performance appraisal Methods
Forced Distribution Method
Similar to grading on a curve; predetermined percentages of rates are placed in various performance
categories.
Critical Incident Method
Keeping a record of uncommonly good or undesirable examples of an employee’s work related behavior
and reviewing it with the employee at predetermined times.
Behaviorally Anchored Rating Scale (BARS)
An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings
by anchoring a quantified scale with specific narrative examples of good and poor performance.
Management by Objectives (MBO)
Involves setting specific measurable goals with each employee and then periodically reviewing the progress
made.
Performance appraisal practice in Agrani Bank Limited:
Agrani Bank Limited partially follow Graphic Rating Scale method. Here each individual has different
format for appraising. Almost Junior to Senior employees have similar format to fill in but there is some
exception for the senior level. The format is designed in the way like Fist page has to be filled up by the
employees by himself but they have to signed in all the pages. There is point system for appraising
employees. For example, if the employees have Banking Diploma they get additional point and the M.B.A
degree holders get more marks than the Graduate and Masters pass holders. There is also provision for
marks for the employees those who can bring more deposit or bring good customer. By considering all
these, Divisional Head put marks and evaluate each employee. After that the appraisal form will send to
Human Resource Department. Usually HRD receives this form from all over the country. After received
completely all the forms they make it ready for the final evaluation for the top management. Usually there
exists evaluation team where they finally select the deserving candidates. After that a list has been sent to the
Board for the final approval.
Helping employees exert high energy level. Some important factors of Motivation are: Motivational Theory
& job Design, Performance Appraisal, Rewards & Compensation, Employee Benefits, Discipline. To do the
Motivation Practices in Agrani Bank Limited
works effectively, Agrani Bank Limited has to maintain the compensations, rewards and benefits system to
meet the requirement of the organisation.
Compensation
Employee compensation refers to all forms of pay or rewards going to employee and arising from their
employment, and it has two main components. There are direct financial payments in the form of wages,
salaries, incentives, commissions, and bonus and there is indirect payment in the form of financial benefits
like employer- paid insurance and vacations. Agrani Bank Limited has follow both the financial and non-
financial methods of compensation to meet the compensation for the employees.
Reward
Reward basically provided to the employees of the organization for their good performance. Agrani Bank
Limited has follow two types of rewards system to meet the needs of the employees. (1) Intrinsic and (2)
Extrinsic.
Intrinsic Reward
It is the personal satisfactions one gets from the job itself. These are self-initiated rewards, such as having
pride in one’s work.
Extrinsic Reward
It includes money, promotions and benefit. Their common thread is that they are external to the job and
come from outside source, mainly management.
Reward Plans for Agrani Bank Limited:
Short term:
Financial
Best performer of the branch/bank can be rewarded quarterly/six monthly/yearly to create a challenge
among the members. Air tickets for couples or family or fixed cash/gifts can be paid in ABL
Non-financial:
Certificates/medals to be given to the outstanding performers. Photo can be published in the newspaper or
special reward can be given from the Management/Board. Special greetings can be given to the employees
on the occasion of their marriage ceremony/ birthday etc. Thus, boost the employees of the ABL to works
effectively and profitability.
Reward for the family members:
Children securing good result/achievement financial reward (prize bond/ cash) or non financial rewards
(watch/ornaments etc.) can be given to them.
Long term:
House building loan: persons having served for a specific period and the repayment for a longer period;
Furniture loan: From the level of AO to Chief Officer of ABL
Educational loan: for acquiring professional education for the members of ABL’s employees.
Marriage loan: Once having a reasonable amount with less interest rate is granted for the members of the
employees.
Motor cycle/car loan: for permanent employees have served for a specific period to the employees of
Agrani Bank with low interest rate.
Medical Facilities for the family: ABL introduce the medical facilities to the members of the bank to help
in problem.
Provident Fund: in conformity with the other private sector banks
Gratuity: in conformity with the other private sector banks ABL has also ensure gratuity for the members.
Benefits
Benefits include mandatory protection programs, pay for time not worked, optional protection programs,
private retirement plans and a wide variety of other services.
Employee Benefits are in forms of salaries, wages, bonuses, allowances, paid annual leave, medical leave
and non-monetary benefits are recognized as an expense in the year in which the services are rendered by
the employees of the company.
Termination benefits
Employee termination benefits are recognized only either after an agreement is in place with the appropriate
employee representatives specifying the terms of redundancy or after individual employees have been
advised of the specific terms.
Pattern of Reward and Benefit
Reward Benefit
Increment (Double/ Triple)
Cash Benefit
Promotion
Provident fund
Group Insurance
Profit bonus
Gratuity
Salaries and wages
Allowances
Paid annual leave
Medical leave
Employ Salary Skill
Sl. Salary Scale 2015 Designation
1 70000 (Fixed) Managing Director
2 65300-7004-22100 Deputy Managing Director/General Manager
3 59200-6506-60700 Deputy General Manager
4 57600-6008-59800 Assistant General Manager
5 55750-55010-57250 Senior Principal Officer
6 512000-47514-53650 Principal Officer
7 49000-40516-50480 Selection Grade of Scale 6800-13090
9 46800-325*11-47090 Senior Officer
10 43100-28011-44360 Officer/Sub Asstt. Engineer (Senior Grade)/Computer Operator/Data Entry Supervisor/Control Supervisor
11 3700-25011-38820 Sub Asstt. Engineer/ Stenographer/ Draftsman/ Estimator/ Rural Credit Supervisor
12 32500-230*11-34060 Attorney Assistant (With Power)/Head Cashier/Godown Inspector/Sr. Field
Assistant
13 25500-2107-27500 Attorney Assistant/Sr. Typist-Cum-Clark/Sr.Typist-Cum-Clerk/Sr.Typist/Sr.Cashier.
14 20300-19011-21940 Steno-Typist/Care Taker
This is the salaries pay scale in Bangladesh set by the Government of the Bangladesh.
Salary Statement of Agrani Bank Employees
31st December, 2015. ( in one year)
SALARY AND ALLOWANCE TAKA
Salaries officers 1,045,974,020
Salaries staff 462,450,680
Dearness allowance (officers & staff) 17,231
Bonus (officers & staff) 190,319,653
Banks contribution to provident fund 424,345
Bank contribution to employees pension fund 166,972,504
Banks contribution to gratuity fund 2,534,927
Conveyance allowance 1,957,340
Entertainment allowance 94,431
Children education allowance 589,396
Other allowance 6,003,111
Honorarium & fees 872,798
Medical expenses consultation 417,923
Medical allowance 34,768,188
Uniform and other apparels 3,888,558
Overtime expenses 4,355,116
Staff income tax 2,600,000
Lunch subsidy 61,789,789
Sports and cultural activities 1,289,000
House rent allowance (officers) 184,660,292
House rent allowance (staffs) 75,218,354
Wages paid temporary employees 6,028,083
Death relief grant scheme 5,633,292
Staff transport 6,255,203
Police & Ansar expenses 4,958,679
Hill allowance 735,497
DMD allowance 196,039
Total 1,348,606,092
Practices in Agrani Bank Limited
Agrani Bank Limited usually provides more or less the above compensation, reward and benefits. They
provided financial compensation like Basic salary, Bonus, Wages, Incentives and Non-financial like
Housing, Medical, Transportation, Insurance.Agrani Bank Limited is one of the state own bank in
Bangladesh. So, it must follow some rules to ensure the compensation and rewards system. It follows the
rewards and benefits program effectively and try to implement the process of benefits and rewards system
effectively. Thus, increase the spirit of the employees to meet the goals of the bank. But in case of
compensation, it failed to meet the needs of the employees. That needs to be done in effective manner.
Employee Relation
Employee relation means managing the relationship between Managers and Workers. Firms in which only
some of the employees are unionized may have both employee relations and labor relation functions for
dealing with the two types of employees.
Employee Relations of ABL
Like before, the Staff Welfare Fund, which is run by the bank’s employees out of their regular contribution,
continued to stand by its members for their well-being. A Board of Trustees is run by the bank to provide
staff members a sum of money as admissible under the rules on his/her termination or retirement from the
bank services or to his/her nominee or legal representative in case of death. To this end, two funds – Agrani
Bank Limited Employees Provident Fund and Agrani Bank Limited Super Annulation Fund, are
maintained.
During 2015, a sum of Tk. 5.76 million was doted out to the employees concerned and their spouses for
health care. The fund also provided Tk. 2.65 million by way of scholarship to 487 children of the employees
for outstanding performance in S.S.C. and H.S.C. examinations.
The bank encourages its employees to shake off monotony by engaging them in recreational activities in the
form of sports and culture. Its soccer and cricket teams, qualified in the First Division and the premier
Division League, have regularly been participating in various tournaments. The bank also patronizes sports
and cultural activities throughout the country.
Environmental Policy
Our environmental management policy stipulates adherence to environmental health and safety regulations
and guidelines, refraining from business that impairs the ability of our future generations to meet their own
needs. The policies with regard to safety, health and environment management are also being observed in
our lending practices in ABL.
The Corporatisation of our bank has paved the way for our corporate leaders to initiate and maintain a
strong and effective corporate structure in line with the directives and guidelines of the Government and
Bangladesh Bank.
Corporate leadership and Social Responsibility
Bank are very sensitive to the society that we operate within. They have a deep commitment, loyalty and a high sense of
responsibility to our nation and the people. Our ethics ate clear: not to earn excessive profits, but to operate in a rational and
sensitive way.
Bank conform to all of the stringent regulations issued by the Government and the Bangladesh Bank. As
part of our corporate social responsibility, we contribute greatly to the nourishment of the country’s arts,
crafts, culture and sports. We share all sorts of values and sentiments, irrespective of caste, creed or colors.
Moreover, we uphold the concept of avoiding gender discriminations. We keep the door open for
empowerment of women workforce to ensure a level playing field in terms of promotion, placement and
delegation of power.
Bank arrange competition for the children regularly to explore their literary and dramatic talents in a colorful
program named Agrani Bank Shishu Sahittaya Award at shishuAcademy.
Also in 2015, we lived up to our commitment by donating tk .05million to Dhaka Ahsania Mission for
building its cancer hospital in the capital.
As part of our commitment, we take part in activities like beautification of city roads and highways, erecting
road-side sheds to save the passengers from the blazing sun and incessant rain.
Immediately after two consecutive floods, the Agrani family donated Tk. 3.3 million along with Tk. 1.7
million from the Bank totaling TK. 5.00 million to support the disaster management effort.
Following the Sidor that devastated the country’s coastal areas, our hundreds of employees, including a
high-profile team from Head Office, volunteered their services to support relief operation and disburse relief
goods in the affected areas.
FINDING AND RECOMMENDATION
The job analysis, human resource planning, recruitment and selection policy of The Agrani Bank
Limited is not standard because the manager of HRD is not capable to apply the various HRM
function.
The bank does not accurately follow the performance appraisal. There is being occurs some
discrimination, nepotisms are exercised. As a result, employees with same efficiency are given
different score by different author.
The Pay Packages of the Bank is not competitive in comparing to other Bank operating in
Bangladesh.
Employees training is not arranged frequently basis.
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”.
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 employees attractiveness.
Chapter- 04
Finding and Recommendation
Findings of the study:
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.
Some recommendation is suggested to solve the problem that arise in implementing HRM practices in the
Agrani Bank Limited. By following below recommendation, Agrani Bank can get best result. The
recommendations are-
To change the Traditional Management System.
To leave the Divisional practice.
To follow the Departmental HR practice in the organization.
Make the department more participative.
Emphasizing on more motivation.
To practice sharing knowledge.
Team based work environment.
Increase flexibility and crate opportunity and ensure participation of all the employees with strategy.
To build knowledge based organization.
Make Relationship with the Media and employees.
Ensure effective means of motivation and rewards system for employees.
Introduce modern and digital way of employees’ performance appraisal.
Make the flexible environment in the organization.
To recruit active, knowledgeable and experienced person in the organization. Increase the Research
based work.
To practicing the TNA (Training Needs Assessment).
To thinking always corporate view.
Maintain relationship with other department.
RECOMMANDATION
CONCLUSION
From the overall analysis Agrani Bank Limited has vast opportunity to create a corporate environment.
Without HRM Practice this organization cannot change present situation. Because HRM practice is for
employees. The employees are internal customers. Without satisfaction of them no organization cannot get
the competitive advantage. So, from my point view the Agrani Bank Limited can became milestone for the
history Bangladesh Banking system. It has vast opportunity to create a value for and also create a
competitive advantage through practicing the HRM.
REFERENCES
www.agranibank.org.
http://www.press.uillinois.edu.
http://www.business.ualberta.ca.
http://academic.emporia.edu.
http://www.allbusiness.com.
http://www.bls.gov .
http://www.entrepreneur.com Human Resource Management by D. Fisher.
Annual Report, 2007, Agrani Bank Limited.
HRM Departmental documents that are collected from Agrani Bank Ltd.
Various files of Amin cort Branch of ABL
APPENDIX
1. HR executives are fully aware of the business needs and strategies.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
2. Human resource requirements are systematically established and an appropriate plan is formulated for satisfying the requirements.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
3. A network of computerized HR information system is available with the latest software.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
4. An effective means of training and development programme to all the employees and gives emphasise to enhance their all level of skills.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
5. HRM has emphasised on organisation design and development as well as management style.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
6. Performance appraisal system is extended to all employees of the organization.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
7. The organization has a formal policy of career planning and development.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
8.The practice of carrying employee attitude and satisfaction surveys.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
9. The bank has provision for employee recognition program and awards.
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
10. Maintain a safe and healthy work environment.
Human Resource Management Practice Questionnaire on Agrani Bank Limited
□ Fully agree □ Agree □ Neither agree or disagree □ Disagree □ Fully disagree
