Chapter one: Introduction

Abstract

Money plays an important role in motivating employees to work hard in Bangladesh. Monetary motivations tend to attract Bangladeshi workers more than the non-monetary ones. This study evaluates the impact of employees motivation on the profita!ility of !anks in Bangladesh. The study employed historical and descriptive research methods and data were collected from secondary sources. The findings from the study revealed that employees motivations have significant impact on the profita!ility of !anks in Bangladesh. The study recommends amongst others" that ade#uate monetary reward and motivation systems should !e fre#uently reviewed and implemented !y the management of !anks in Bangladesh. The !anks are also encouraged to set up monetary reward and motivation systems that should not !e unfair or related only to the marketing a!ility of the employee. The system should !e !roadened to capture other performance criteria like operational efficiency" customer courtesy" $o! skills and e%perience" and professionalism.

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Chapter one: Introduction

1.1: Introduction:
The need to increase productivity and efficiency in the !usiness including !anking !usiness has led to increasing academic interest in the area of motivation over the years. )cholars have !een keenly interested in knowing what factors are responsi!le for stimulating the will to work in !ank . Thus motivation has !ecome an issue of concern for !oth scholars and practitioners of personnel management. *very organi+ation either in the private or pu!lic sector is goal oriented and all efforts are geared towards the successful attainment of those goals and o!$ectives. Therefore" for any organi+ation to record any degree of meaningful success in the pursuit of its goals and aspirations" it must have the a!ility to create values ,motivation- enough to compensate for the !urdens imposed upon the staff. )uch value or motivators can come in the form of good training policies" facilities or incentives such as fringe !enefit" promotion" status sym!ol etc so as to satisfy the needs of the staff for enhanced performance. It has !een shown" argued and proven that unless individual staff are motivated to make sufficient use of the potentials found in them during the employment process they may not achieve the level of performance that is desired from them . .or a staff to !e motivated" he or she has to perceive that his or her needs and wants are !eing met. Thus the satisfaction of the staff represents an indispensa!le dimension of the motivational process. / satisfied individual would certainly contri!ute positively to the reali+ation of the organi+ational goals and o!$ectives while a dissatisfied staff may only not contri!ute !ut can even act in such a way that the reali+ation of such goals and o!$ectives could !e completely destroyed. This underlines the importance of staff satisfaction to the organi+ation. Motivation is said to !e the core of management of human resources. The management of men and women is a challenging task. 0o two persons have the same #ualities " feelings and !ehavior . The nature of man is very comple%. It is not easy to take care of human !eings with such varying characteristics and #ualities.

.inally" the test for management of either private or pu!lic organi+ations therefore is to determine the valued needs and motivators that will make an employee react according to the organi+ational desires to increase productivity. The impact of employee motivation on the !anking industry using the *%im Bank " as a case study will therefore form the !asis of this study.

1.2: Rationale of the Research:

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Chapter one: Introduction

Bank is one of the important sectors in Bangladesh. 2uge competition is prevailing in this sector. Moreover" innovation of modern technology and communication system also !oost up the growth potentiality of the !anking sector. Most of the !anks attempt to provide cra+y !anking attitude towards the customers. In the present market situation" whether cra+y !anking attitude is sustaina!le or not3 whether recent developed !anks i.e. 1rd generation !anks a!le to compete under this pressure. These matters !ecome a contemporary and interesting issue among the academicians" economist and national policy maker. /s a student of .inance department" I have felt an urge to find out answers of these contemporary issues in this report. I found no previous report stated this sort of analysis of the relevant field. The ultimate aim of the report is to analy+e the !anking facilities provided !y 1rd generation !anks with a special emphasis of *4IM Bank Bangladesh 5imited. In this report" I put a special emphasis on Islami Bank as it has huge prospects in the near future all over the world.

1.3: Objective of the study:

The primary objective of this study is to analyse 6*mployees motivation in !anking sector7. 8ther secondary o!$ectives which can support to analy+e the primary o!$ective are as follows:-

Secondary objective:
1.To know the ways of motivation in *%im Bank 5td. (.To know the level of satisfaction among the employee of *%im Bank 5td. 1.To investigate the relative importance of motivating factors of *%im Bank 5td. '.To know the motivational factors *%im Bank 5td. 9.To know the different concept and theoretical frame work of motivation. :.To measure the importance of relative motivational factors. ;.To measure the level of satisfaction in the *%im Bank 5td. <.To know the pro!lems of providing motivation in *%im Bank 5td. =.To identify the measura!le steps for overcoming the motivation pro!lem.

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Chapter one: Introduction

'

1. !ethodolo"y of the Study:

Theoretical approach and secondarily on practical analysis has !een conducted this current study. /lthough >esearch topic was finali+ed !y the research supervisor. /t the same time" the researcher fortunately" has a scope for ac#uiring practical knowledge after successful completion of theoretical academic approach like this internship. This approach gave an e%tensive practical e%posure and has imparted lots of data re#uired for the study to the researcher herself. 2ence" the study was carried in forms like academic approach with ?articipatory >esearch /nalysis ,?>/- and practical orientation. @ata was there!y collected from two main sources. These are:

#rimary sources:
I$ Auestionnaire )urvey 8pen-end #uestions Close-end #uestions

II$ Observation
Collected data primarily !y direct investigations of different records" paper. >elevant data collected !y operate different documents.

III$

Off%the%job trainin" classes.

Collected information !anks philosophy" working procedure" management system and decision making process of the *%im Bank 5td . @iscussion with other officials and concerned e%perts.

I&$

On%the%job e'perience.

@iscussed with e%ecutives and top level management of *%im Bank 5td !ecome conversant with the !anks philosophy" working procedures"

Secondary sources:
>eports. >elevant !ooks. &ournals.

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Chapter one: Introduction >elevant !ooklets etc.

Research approach:
/fter @ata collected from secondary sources have !een processed manually and #ualitative approach has !een used throughout the study. Aualitative approach has !een adopted for data analysis and interpretation taking the processed data as the !ase. )o the report relies primarily on an analytical $udgment and critical reasoning. .inally" that way" collected data are classified" ta!ulated" analy+ed" interpreted and presented in the form of research report thereafter.

Instruments:
Research instruments: >esearch instruments were mainly the information gathered for the a!ove mentioned sources. !echanical Instruments: Microsoft word will !e used to prepare the report.

1.(: )imitation of the study:

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Chapter one: Introduction

In spite of my !est effort" I am sure of some lacking prevailing in this report. These are caused !y some limitations that are enumerated !elow. I. The duration of our internship program is only ( months. The allocated time is not sufficient for us to gather knowledge and to make the study a complete and fruitful one. II. .or the lack of our practical knowledge" some shortcoming may !e availa!le in the paper. III. )ome data could not !e collected for their confidentiality and official secrecy. IB. The rate of success of my study may !e limited" as I might have failed to collect proper information due to lack of my e%perience. B. 5ack of any finance for the study has affected the research works" e.g." opinion poll could not !e conducted. BI. *%aggerated versions of stories from company officials may deter the accuracy of the outcome of the study. BII. >apid changes in the competitive market in terms of demand and competition may cause the lack of worthiness in creating actual time utility of this report. BIII. )ome analysis hampered for the inade#uacy of data provided !y the officials I" therefore" hope that the study will !e evaluated with an approach su!$ect to the recognition of the a!ove-mentioned shortcomings.

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Chapter one: Introduction

2.1 *ac+"round of ,-I! *an+ *an"ladesh )td:

*%port Import Bank of Bangladesh 5imited was esta!lished in the year 1=== under the leadership of 5ate Mr. )hah$ahan Ca!ir" .ounder Chairman who had a long dream of floating a commercial !ank which would contri!ute to the socio-economic development of our country. 2e had a long e%perience as a good !anker. / group of highly #ualified and successful entrepreneurs $oined their hands with the founder chairman to materiali+e his dream. In deed" all of them proved themselves in their respective !usiness as most successful star with their endeavor" intelligence" hard working and talent entrepreneurship. /mong them" Mr. 0a+rul Islam Ma+umder who is an illuminated !usiness tycon in the Darments !usiness in Bangladesh !ecame the 2onora!le Chairman after the demise of the honora!le founder chairman. 2e is also the chairman of Bangladesh /ssociation of Banks ,B/B-. Ender his leadership" B/B has emerged as an effective forum for e%changing views on pro!lems !eing faced !y the !anking sector of Bangladesh and for formulating common policy guidelines in addressing such pro!lems.

This Bank starts functioning from 1rd /ugust" 1=== with its name as Bengal *%port Import Bank 5imited. 8n 1:th 0ovem!er 1===" it was renamed as *%port Import Bank of Bangladesh 5imited with Mr. /lamgir Ca!ir as the .ounder /dvisor and Mr. Mohammad 5akiotullah as the .ounder Managing @irector respectively. Both of them have long e%perience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities" this !ank has earned a secured and distinctive position in the !anking industry in terms of performance" growth" and e%cellent management. Ender the leadership of Mr. 5akiotullah" the Bank has migrated all of its conventional !anking operation into )hariah Based Islami Banking in the year &uly (FF'.

Mr. Mohammed 5okiotullah left the Bank on 1rd &une" (FF;" there after Mr. Ca+i Masihur >ahman !ecame Managing @irector on 'th &une" (FF;. Mr. >ahman served in the !ank for ne%t five years. Ender his leadership" the !ank has !een placed on a state of the art centrali+ed IT platform with two modern data centers where world

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Chapter one: Introduction renowned core !anking software T*M*08) T(' is running along with some alternate delivery channels like /TMs and )M) !anking. 8n (9th /ugust" (F11" Mr. Md. .ariduddin /hmed has $oined in the !ank as Managing @irector. Gith his long e%perience in the )hariah Based Islami !anking in Bangladesh" *4IM Bank is going to take a new shape where IT-ena!le !anking service will spread in the market.

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2.2: !ission Statement of ,'im *an+:

The Bank s mission gives emphasis to: ?rovide #uality financial services especially in .oreign Trade. Continue a contemporary technology !ased professional !anking environment Maintain corporate H !usiness ethics and transparency at all levels )ound Capital Base *nsure sustaina!le growth and esta!lish full value to the honora!le stakeholders .ulfill its social commitments and /!ove all" to add positive contri!ution to the national economy.

2.3: &ision of ,'im *an+:

The gist of our vision is ITogether Towards Tomorrow . *%port Import Bank of Bangladesh 5imited !elieves in togetherness with its customers" in its march on the road to growth and progress with service. To achieve the desired goal" there will !e pursuit of e%cellence at all stages with climate of continuous improvement" !ecause" in *%im Bank" we !elieve" the line of e%cellence is never ending. Bank s strategic plans and networking will strengthen is competitive edge over others in rapidly

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Chapter one: Introduction

changing competitive environment. Its personali+ed #uality services to the customers with trend of constant improvement will !e the cornerstone to achieve our operational success.

2. : .oal of ,'im *an+:

?roviding high #uality financial services in e%port and import trade. ?roviding efficient customer service. Being trusted repository of customer s money and their financial adviser. Making its products superior and rewarding to the customers. )ound Capital Base. *nhancement of shareholders wealth.

2.( Shariah /omplianc of ,'im *an+:

There is a learned )hariah Council" consisting of 1( mem!ers who are prominent Elema" reputed !ankers and eminent economists of the country. The council has !een formed to guide" monitor and supervise the !anking activities complying )hariah principle since inception of its Islami !anking !ranches and thereafter transformation of its operation from traditional to fully )hariah !ased Islamic !anking system. ?rofessor Maulana Muhammad )alah Eddin is the Chairman of the council. Total F: ,)i%- meetings of the council were held during the period.

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